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Home My WebLink About07/11/2023 03. Public Works Proposed Budget Reductions Presentation 11— BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 3. For Meeting of: July 11, 2023 ITEM TITLE: Public Works Proposed Budget Reductions Presentation SUBMITTED BY: Scott Schafer, Public Works Director(509)576-6411 SUMMARY EXPLANATION: Study Session to discuss potential budget reductions/eliminations within the General Fund Divisions of Public Works. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: ATTACHMENTS: Description Upload Date Type d PW Budget Reduction Presentation 7/6/2023 Presentation Department of Public Works Services General Fund Divisions (City Hall Facility, Engineering, Street & Traffic and Parks & Rec) Strategic Priorities • Public Safety • Snow & Ice Removal/Control • Road Maintenance/Repairs (pothole/crack repair, grind & overlay, chip seal) • Traffic System Maintenance/Repairs (signs, signals, street lights, Opticom system, street markings/striping) • Traffic-Calming • Environmental Clean Ups (Mill Site, Tiger Oil locations) • Fiscal Sustainability • Grant Applications/Funding • N. 1st St. Phase 3 - $3.47M; $1.5M (National Highway System Asset Management; Transportation Improvement Board) • Mill Site Cleanup - $3M (Department of Ecology) • Summitview Resurfacing (40th Ave. to 48th Ave. & 50th Ave. to 72nd Ave.) - $2.3M (National Highway System Asset Management) • Tiger Oil Nob Hill Clean Up - $1.7M; Tiger Oil N. 1st St. Clean Up - $1.6M (Department of Ecology) • MLK Jr. Pool Design & Specs - $1M (Washington State Legislature) • Miller Park Improvements - $625,000 (Department of Commerce) • West Valley Community Park Pedestrian Bridge - $432,000 (Recreation and Conservation Office) • Pacific Ave. Sidewalks - $250,000 (Transportation Improvement Board - Complete Streets) Department of Public Works Services General Fund Divisions (City Hall Facility, Engineering, Street & Traffic and Parks & Rec) Strategic Priorities • Strengthening Partnerships • Washington Fruit Community Center Partnerships (Yakima Neighborhood Health, La Casa Hogar, People for People) • Henry Beauchamp Jr. Community Center (OIC) • Local Service Clubs • Department of Ecology • Yakima Valley Conference of Governments (YVCOG) • Washington State Department of Transportation • Investment in Infrastructure • Road & Traffic System Improvements (12-inch LED traffic signals, flashing yellow/battery backup, Bravo Company Blvd./Mill Site/East-West Corridor) • Park & Rec Improvements (Miller Park improvements, Lions Pool air-handling/dehumid system, Chesterley Park pathways, West Valley Community Park Pedestrian Bridge) • Facility Improvements (City Hall & parking lots, former Bank of America Building, HBCC) • Housing —not addressed with Public Works General Fund Divisions The City Manager's Direction • All City General Funded Divisions must identify significant reductions to reach a goal of $7.2M • Some cuts will be immediate while others will be phased in over time • The City Manager does not support reducing salaries or mandating furloughs • Reductions of this size will clearly impact the services the City currently provides City Hall Facility The function of City Hall Facility is to provide essential building rehabilitation, maintenance, and custodial services for City Hall, HenryBeauchampJr. CommunityCenter HBCC Yakima Public Affairs Channel (Y-PAC MiCare Clinic and the former Bank of America Building. Primary services provided by this division include: • Providing clean, orderly, and safe facilities for the public and staff. • Performing routine maintenance, construction and re-modeling • Performing repairs to: • Heating/air conditioning systems • Electrical distribution systems • Plumbing/boiler systems • Door locks/card key systems • Supervision and maintenance of City Hall security video system. • Performing custodial duties Staff = 3.0 FTEs City Hall Facility Reductions (10% Reduction - Approximately $50,000) • Eliminate Temporary Custodial Staff • Approx. $13,000 Impact—Significantly reduces staff's ability to clean City Hall and to address graffiti/trash in the parking lots • Reduce Contractor Repair & Maintenance Funding for HBCC • $10,000 Impact-Reduces ability to address necessary repairs and maintenance. • Reduce Contractor Repair & Maintenance Funding for City Hall • $20,000 Impact—Reduces ability to address necessary repairs and maintenance. Identified Savings = $ 43,000 Engineering The function of the Engineering Division is the administration and preparation of reports, designs, plans, specifications, funding applications, construction inspection, and cost estimates for state, federal, and locally funded construction projects, local improvement districts and private development projects. Primary services provided by this division include: • Determining and acquiring right-of-way needs for public infrastructure projects • Administering the Right of Way (ROW) use and street cut permitting program • Coordinating and supervising work of private developers • Providing inspection services on public works projects such as sewers, domestic water, irrigation and streets • Providing utility connection information and other information concerning City facilities • Providing administrative and technical engineering assistance to other divisions within the City. Staff = 9.0 FTEs Engineering Reductions (10% Reduction - Approximately $110,000) • Eliminate Design Engineer Position (vacant) • $90,854 - $12,270 (14% Funded by Enterprise Divisions) = $78,134 Impact—Fund savings is used to fund outside consultant for engineering services. If position or funding is eliminated, would significantly reduce the ability to apply for future grants and perform other necessary engineering tasks. • Continue to Underfill Design Engineer Position with Development Engineer • Approx. $ 5,500 Impact— Does not allow Engineering to expand as needed in key positions. Identified Savings = $ 83,634 Street & Traffic The function of the Streets & Traffic Division is to preserve and maintain the City of Yakima's transportation system; focusing on public safety to provide safe streets for motorists, pedestrians and bicyclists. Primary services provided by this division include: • Street preservation, maintenance and repairs • Grind & overlay • Tear out & overlay • Chip seal operation • Crack-filling • Pothole repair • Street sweeping • Sidewalk repair • Weed control within right-of-way • Snow and ice control • Traffic system design, installation, operation and maintenance • Street lighting, • Traffic signals, • Signs, • Pavement marking Staff = 33 FTEs Street & Traffic Reductions (10% Reduction - Approximately $440,000) • Eliminate Streets Operation Lead Position (vacant) • Approx. $118,000 Impact—Increased span of control for Street Operations Supervisor • Delayed Residential Snow Removal/Elimination of Contractors • $225,000 Impact—Contractors not hired to remove snow from residential neighborhoods after snow event of 3 or more inches. • Eliminate Alleyway Maintenance/Repair • Approx. $30,000 Impact—No maintenance/repair unless grant funding becomes available. • Move Traffic Technician II Position to Engineering/Remove from General Fund* • Approx. $53,800 Impact—Removes cost from General Fund to be covered by project funding; increases project costs. • Eliminate Trolley Maintenance/Repair • $10,000 Impact—No maintenance/repairs unless grant funding becomes available. Identified Savings = $ 436,800 *Traffic Technician II position currently resides in Streets& Traffic but was planned to be moved into Engineering. Parks & Rec The function of the Parks and Recreation Division is to provide recreational programs and activities, leisure services, park facilities and open spaces for the community to enjoy; enhancing the quality of life for our residents. Primary services provided by this division include: • Community Centers • Partnerships (Neighborhood Health Services, La Casa Hogar, People for People, Seniors Inc.) • Health services • Meals on Wheels • Citizenship classes/Mexican folk dance • Senior lunches/Senior trips • Beyond the Bell afterschool program • Summer day camp • Swimming Pools • Aquatic activities (Swim lessons, water walking, lap and free swim) • School district team swim • Ball Fields • Golf Course • Parks • Playgrounds/Picnic shelters • Pathways • Basketball &tennis courts • Spray parks • Concerts/Movies Staff = 25.13 FTEs Park & Rec Reductions (10% Reduction - Approximately $310,000) • Eliminate Friday Movie Nights at Chesterley Park • Approx. $4,800 Impact—No free event for families to attend within a City Park. • Eliminate Summer Concert Series at Franklin Park • Approx. $13,600 Impact—No free concerts for families to attend within a City Park. • Transfer the Cost of Irrigation Usage to DYBID Businesses • Approx. $25,000 Impact—Assessment increase for businesses within the DYBID • Close Fisher Golf Course • Approx. $72,000 Impact—This would eliminate a popular quality of life activity. • Eliminate Beyond the Bell Program and Miller Park/Kissel Park Summer Day Camps • Approx. $223,834 Impact—This would eliminate afterschool and summer programs. Identified Savings = $339,234 Potential Solution Increase the In-Lieu Tax In-Lieu Tax is an internal City tax on utility revenue for the General Fund Current 6% Rates In-Lieu Clean City Total Proposed MLK Jr.Pool Funding(Operation/Capital) Wastewater 20% $5,180,000 - $5,180,000 New New Prior 5%Earmark Stormwater 15% $601,000 - $601,000 Rate Amount Amount Pool Water 20% $2,350,000 - $2,350,000 Stormwater 20% $801,000 $601,000 $200,000 Refuse 20% $1,830,000 $550,000 $1,280,000 In-Lieu Tax to General Fund: $9,411,000 21% 22% 23% 24% 25% In-Lieu In-Lieu In-Lieu In-Lieu In-Lieu Wastewater $5,440,000 $5,700,000 $5,950,000 $6,220,000 $6,475,000 Stormwater $641,000 $681,000 $720,000 $761,000 $800,000 Water $2,470,000 $2,600,000 $2,700,000 $2,820,000 $2,940,000 Refuse $1,370,000 $1,460,000 $1,550,000 $1,650,000 $1,750,000 **In-Lieu Tax to General Fund: $9 $10,441,000 $10,920,000 $11,451,000 $11965,000 Additional In-Lieu Tax: $510,000 $1,030,000 $1,510,000 $2,040,000 $2,554,000 **The calculated In-Lieu amounts to the General Fund account for$550,000(Clean City)and$200,000(MLK Jr. Pool)already being subtracted from the totals Potential Solution Charter Amendment - Streets Dedicated street overlay and reconstruction fund,funded annually in the amount of no less than Two Million Dollars from the General Fund budget, adjusted annually in accordance with consumer price index, and providing that expenditures from such fund be limited to such street overlay and reconstruction Bonds retire in 2024 and 2028 Beginning in 2025 —approximately $2,437,400 available; additional $400,000 applied to debt service Beginning in 2029 —approximately $3,467,700 available Projects (Labor/Equipment) Material costs for projects Crack-fill $349,000 are funded by REET Grind & Overlay (Tear Out) $600,800 Grind & Overlay $263,100 Chip Seal $1,324,700 Total: $2,537,600 (General Fund) • Charter amendment funds could potentially save the General Fund approximately $2.4M/year starting in 2025. • Remaining charter amendment funds could be utilized as "match money" for the various grants awarded to Engineering for street improvement projects and "Pay as you Go" projects starting in 2029. 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