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Home My WebLink About01/08/2008 07A Draft Minutes 12-04-2007 Adjourned MeetingADJOURNED MEETING DECEMBER 4, 2007 — 8 30 A.M. —12:00 NOON COUNCIL CHAMBERS - CITY HALL BUDGET WRAP UP 1 Roll Call Present: Council- Mayor Dave Edler, presiding, Council Members Ron Bonlender, Micah Cawley, Norm Johnson, Bill Lover, and Susan Whitman Staff, City Manager Zais, Finance & Budget Director DeBord, and City Clerk Moore Absent: Neil McClure (excused) ➢ Opening Statements City Manager Zais described the budget process. Decisions are to be made on the policy issues today The budget still depends on reserves, but somewhat less than when this year's process began. The reliance on reserves is something we manage carefully In round numbers, the general government budget is approximately $58 million, and the total overall budget is near $181 million A significant amount of the budget is in utilities and capital improvements. Although the budget has increased by $2 million since the original forecast, the good news is that all of that increase is covered by revenue streams. This is an austere budget. We have made nearly $800,000 in reductions in the general operating budget. Council Member Bonlender re- emphasized that the large increase in the size of the budget is not just growth of government spending, but also reflects large capital projects covered by grants. Council Member Lover stated that the operating budget is the most important product of the Council, and it is necessary to look at the actual details to truly understand it. He gave comparison information of growth in population and budgets since 2005 He also spoke of the Council Budget Committee whose goal was to identify $2 million in expenditures to be eliminated. $2 million dollars in reductions were identified and approximately $800,000 in savings was realized He claimed that City expenditures are still growing faster than our economy and our revenues, and one of our highest priorities. should be to stabilize spending in -line with established revenues In response to a request from Mayor Edler, Mr Zais gave details of the budget increases identifying various major projects such as Washington Avenue, River Road, Downtown Futures Initiative, the Kiwanis ball fields, and the pursuit of the Railroad Grade Separation Once these projects are completed the cost drops to maintenance only 2. Budget Wrap -up Document 1. OUTSIDE AGENCY AND INTERGOVERNMENTAL REQUESTS Outside Agency Requests ➢ Yakima County Development Association (New Vision), General Fund, $19,913 budgeted, $87 unbudgeted = $20,000 total. ® LOVER MOVED AND JOHNSON SECONDED TO APPROVE. The motion carried by unanimous voice vote DECEMBER 4, 2007 — BUDGET WRAP UP ➢ Yakima Chamber of Commerce, General Fund, $5,900, budgeted BONLENDER MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by unanimous voice vote ➢ Hispanic Chamber of Commerce, General Fund, $5,900, budgeted BONLENDER MOVED AND CAWLEY SECONDED TO-APPROVE. The motion carried by unanimous voice vote ➢ Fourth of July Committee, General Fund, $5,000 budgeted; $500 unbudgeted. JOHNSON MOVED AND CAWLEY SECONDED TO APPROVE AT $5,500. WHITMAN MOVED TO AMEND THE MOTION TO NOT FUND AT THE FULL AMOUNT BUT REDUCE IT TO $2,500 AND DISCONTINUE FUNDING IT IN 2009. The motion to amend died for lack of a second. The original motion carried by unanimous voice vote ➢ Sunfair Association, General Fund, $1,000 budgeted BONLENDER MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by unanimous voice vote ➢ Yakima Basin Storage Alliance, Black Rock; Water Reserves (60 %) $18,000, Irrigation Reserves (40 %) $12,000, budgeted, or partially from General Funds (unbudgeted) BONLENDER MOVED AND JOHNSON SECONDED TO ADOPT THE $30,000 WITH $18,000 FROM WATER RESERVES AND $12,000 FROM THE GENERAL FUND Council Member Lover said he would like to see it all come from the general fund because only a certain portion of the city is serviced by Yakima Water LOVER MOVED AND CAWLEY SECONDED TO HAVE THE ENTIRE $30,000 COME FROM THE GENERAL FUND. Following discussion, the amending motion failed by a 3-3 roll call vote, Edler, Whitman and Bonlender voting nay The question was called for a vote on the original motion. The motion failed by a 3 -3 roll call vote, Lover, Cawley and Edler voting nay BONLENDER MOVED AND EDLER SECONDED TO APPROVE AS PRESENTED IN THE WRAP UP DOCUMENT The motion failed by a 4 -2 roll call vote; Johnson, Lover, Whitman, Cawley voting nay The item was deferred to the Business Meeting to be held this evening. ➢ Yakima - Morelia Sister City Association; Economic Development Fund, $50,000, budgeted • WHITMAN MOVED AND BONLENDER SECONDED TO APPROVE. The motion carried by unanimous voice vote ➢ Committee for Downtown Yakima (request for maintenance assistance), CBD Capital Improvement Fund, $50,000, budgeted • JOHNSON MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by unanimous voice vote. 0 DECEMBER 4, 2007 — BUDGET WRAP UP 0 ➢ Allied Arts Arts Van; General Fund, $5 333 deleted. JOHNSON MOVED AND CAWLEY SECONDED TO RESTORE THIS ITEM TO THE BUDGET The motion carried by unanimous voice vote ➢ Retired Senior Volunteer Program (RSVP), Parks and Recreation Fund $3,000, In -kind $2,000, deleted CAWLEY MOVED AND BONLENDER SECONDED TO RESTORE THIS ITEM TO THE BUDGET The motion carried by unanimous voice vote ➢ Seasons Music Festival — Music education program for high school students (one time request), Parks and Recreation Fund, $8,000, unbudgeted. JOHNSON MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by unanimous voice vote ➢ Citizens for Safe Yakima Valley Communities; General Fund, $20,000, unbudgeted JOHNSON MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by unanimous roll call vote Intergovem mental Agencies ➢ Clean Air Authority Assessment; General Fund, 2008 total $22,062, budgeted. LOVER MOVED AND JOHNSON SECONDED TO APPROVE. The motion carried b_v unanimous roll call vote ➢ Yakima County Emergency Management Assessment; General Fund, 2008 total $57,212, budgeted WHITMAN MOVED AND BONLENDER SECONDED TO APPROVE. The motion failed by a 3 -3 vote, Cawley, Johnson, and Lover voting nay The item will be reviewed again during the evening's business meeting ➢ Yakima Valley Conference of Governments (COG) Membership Assessment; General Fund, 2008 total $45,581, budgeted. Council approved the assessment at their 11/20/07 meeting II. CITY MANAGEMENT Purchasing ➢ NIGP Joint City /County Purchasing Assessment (one -time request), General fund $17,000, unbudgeted WHITMAN MOVED AND LOVER SECONDED TO APPROVE. The motion carried by unanimous voice vote DECEMBER 4, 2007 — BUDGET WRAP UP Wastewater/Pre-Treatment ➢ (a) Cost of service and rate study Retail Rates. 2008-35%,2009-3.5%, 2010— 3 5 %, Strong waste charge modified from 10% to 7% for three years, budgeted. (b) Wastewater connection charge study Bi- monthly Wastewater rate charges paid by customers of the Wastewater Division Revenue 2008 - $424,200; 2009 - $439,000; 2010 - $454,000, budgeted JOHNSON MOVED AND BONLENDER SECONDED TO APPROVE (A) AND (B). Council Member Lover discussed a possible amendment to (A) to help support attracting new businesses LOVER MOVED AND CAWLEY SECONDED TO REDUCE THE STRONG WASTE CHARGE IN (A) TO 5 %. The motion failed by a 4 -2 roll call vote, Bonlender, Edler, Johnson and Whitman voting nay The question was called for a vote on the original motion. The motion carried by unanimous roll call vote ➢ Revenue Bond for future capital improvements & increased capacity; Revenue Bond — funded from existing rates with maturity of current bond, $5,500,000, budgeted JOHNSON MOVED AND LOVER SECONDED TO APPROVE. The motion carried by unanimous voice vote Water /Irrigation ➢ Currently approved rate increase 2008 — 3 5%,2009 — 3 5% Proposed Cost of service and rate study for Water operating and capital improvements a) 3 5% in years 2008 & 2009, 8 5% in years 2010 -2012 b) 3 5% in 2008, 5% in 2009, 7 5% in 2010 -2012 c) 5 5% per year, 2008 -2012 Adjustments to installation fees for %" & 1" new water services JOHNSON MOVED AND BONLENDER SECONDED TO APPROVE OPTION C. The motion carried by unanimous voice vote Ill. MUNICIPAL COURT — None IV FINANCE Financial Services • • ➢ Finance Department reorganization; General fund ($2,600), Utility Services $37,769, ONDS ($49,240), net savings ($14,071) 1 Re -align personnel, ONDS ($40,771), budgeted II Reprioritize work; $8,300, budgeted III Upgrade position, $5,000, budgeted IV Consolidate positions, $13,400, recommend implementation in 2009 WHITMAN MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by unanimous voice vote 0 DECEMBER 4, 2007 — BUDGET WRAP UP 0 Information Systems/Legal ➢ Implement an e-mail management and archiving system to facilitate data collection for public disclosure requests, 2008 Risk Mgmt Fund $45,000, 2009 Info Systems General Fund $6,500, budgeted CAWLEY MOVED AND BONLENDER SECONDED TO APPROVE. The motion carried by unanimous voice vote V COMMUNITY AND ECONOMIC DEVELOPMENT Codes ➢ Add one Code Inspector position and related equipment/supplies ($88,000), General Fund, increased permit revenue from new construction and annexations, budgeted BONLENDER MOVED AND WHITMAN SECONDED TO APPROVE. The motion carried by 5 -1 roll call vote, Cawley voting nay ➢ Increase Humane Society service fee by 10% to adequately support operations, General Fund, 2008 total $62,878, budgeted 0 BONLENDER MOVED AND WHITMAN SECONDED TO APPROVE. The motion carried by unanimous voice vote • ➢ Implement fee for Fire inspections Less administration costs for billing a new program General Fund — new revenue, Net increased revenue $172,750, unbudgeted WHITMAN MOVED AND EDLER SECONDED TO APPROVE. Following discussion, BONLENDER MOVED TO AMEND THE FEE TO $25. The motion died for lack of a second WHITMAN MOVED TO AMEND THE MOTION BYREMOV/NG THE CONNECTION TO CPI. The motion died for lack of a second The question was called for a vote on the original motion The motion failed, 4 -2, Bonlender, Cawley, Johnson, Lover voting nay ONDS (Office of Neighborhood Development) ➢ Extend funding for SE Community Center an additional 2 years - $75,000 annually; Community Development Block Grant, $75,000 2008 & 2009, budgeted. CAWLEY MOVED TO FUND ONLY ONE YEAR. The motion died for lack of a second BONLENDER MOVED AND WHITMAN SECONDED TO APPROVE. City Manager Zais explained that the budget was out of sync with the contract; 5 years versus 3 years. Council Member Lover suggested removing the five and ten year renewal options in the contract. It was suggested this be brought up when the contract is scheduled to be rewritten. The question was called for a vote on the motion. The motion carried by unanimous voice vote 5 DECEMBER 4, 2007 — BUDGET WRAP UP Tourism PromotionNakima Convention Center ➢ Increase annual management fee from $565,000 to $645,000 to adequately support Center operations, Tourist promotion operating fund Hotel /Motel tax event revenue, $80,000, budgeted. ➢ Increase support to the Sports Commission from $45,000 to $46,500; Tourist promotion operating fund Hotel /Motel tax; $1,500, budgeted ➢ Complete "Branding" process to enhance regional promotion efforts; Tourist promotion operating fund, $30,000, Tourism promotion area fund, $30,000, budgeted ➢ Market and Economic Feasibility Study; Expansion Plan, Convention Center capital, $26,000, budgeted ➢ Allocation of Tourism Promotion Area revenue, Tourism promotion area, $370,000, budgeted McCLURE MOVED AND BONLENDER SECONDED TO APPROVE. The motion carried by unanimous voice vote Capitol Theatre ➢ Increase annual management fee from $175,000 to $197,000, Capitol Theatre operating fund, Hote /Motel tax, cable utility tax, $22,000, budgeted ➢ Capitol Theatre Phase 2 Expansion, 2008 preliminary work, Capitol Theatre construction fund Capitol Theatre reserve interfund loan ($500,000), Private donations ($250,000) PFD transfer from state sales tax credit ($416,000) ➢ 2009 bond issue to be repaid by PFD sales tax credit; Bond - $7,000,000, other revenue (such as donations /grants /interest - $1,400,000), Project total Phase 2 - $9,500,000, budgeted WHITMAN MOVED AND LOVER SECONDED TO APPROVE. The motion carried bv_ unanimous voice vote Engineering ➢ Councilmatic bonds for critical street projects a) Grind and overlay 3`d Ave Mead - Chestnut; $1,400,000 b) Pedestrian crossing safety enhancements, S 16 "' Ave & Bonnie Doone, N 4i" St & MLK Blvd), $300,000 c) Add traffic signal 66'h & Summitview; $350,000 Arterial Street Fund, debt service split between REET 1 & 2, budgeted ➢ Nob Hill overpass repair; Arterial Street Fund, 50% REET 2 Fund cash reserves, 50% grant or PWTF Loan, $1,000,000, budgeted. CAWLEY MOVED AND LOVER SECONDED TO APPROVE. The motion carried by unanimous voice vote Stormwater ➢ Implement stormwater operating and capital improvement program, Rate options per ERU, Option C selected by Council at 11/20/07 meeting, Graduated rate- 2008 -$22, 2009 -$35, Stormwater utility fee DECEMBER 4, 2007 — BUDGET WRAP UP 0 VI POLICE Add one Deputy Police Chief position effective 7/1/08; General Fund, 2008 $65,000, Equipment $120,000, budgeted. CAWLEY MOVED AND WHITMAN SECONDED TO APPROVE. The motion carried by unanimous voice vote VII. FIRE Capital ➢ New ladder truck, Fire capital fund, $1,000,000, budgeted. Sale of Race Street Fire Station, Revenue to Fire Capital, $150,000, unbudgeted WHITMAN MOVED AND BONLENDER SECONDED TO APPROVE. The motion carried by unanimous voice vote Public Safety Communications Add one Public Safety Dispatcher position (9 mos ), Public safety communications fund, 0 3% Criminal justice sales tax, 2008 - $45,000 personnel, $5,000 non personnel, budgeted ® JOHNSON MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by unanimous voice vote VIII. PUBLIC WORKS Transit Purchase 3 heavy -duty, low -floor buses, Transit capital reserves, $1,330,000, budgeted WHITMAN MOVED AND BONLENDER SECONDED TO APPROVE. The motion carried by unanimous voice vote Add part-time DAII position (50% FTE), Transit Operating, $21,000, budgeted BONLENDER MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by a 5 -1 roll call vote, Lover voting nay Transit bus fare fuel surcharge, Transit fare box, net revenue $30,000; unbudgeted. BONLENDER MOVED AND EDLER SECONDED TO APPROVE. City Manager Zais clarified that the motion is to initiate the federal public hearing process to bring it back for the next Council's action Council Member Cawley spoke against the increase. The motion carried by a 5 -1 roll call vote, Cawley voting nay Purchase 10 vans for Dial -a -Ride program, Transit capital reserves state grant, Net cost ® $56,000, budgeted CAWLEY MOVED AND BONLENDER SECONDED TO APPROVE. The motion carried by unanimous voice vote DECEMBER 4, 2007 — BUDGET WRAP UP Refuse 5% rate increase to cover increased operating expenses, bi- monthly charges paid by customers, Revenue 2008 - $154,950, 2009 - $200,000; budgeted BONLENDER MOVED AND JOHNSON SECONDED TO APPROVE. The motion carried by unanimous voice vote 1 5% rate increase to fund Fall Leaf program, 2008 revenue $48,000, bi- monthly charges paid by customers, unbudgeted BONLENDER MOVED AND EDLER SECONDED TO APPROVE. Council Member Cawley asked what happens if it fails, does the fall leaf program go away? City Manager Zais explained that if it failed, we would have to reallocate those costs back to the Street budget, or not continue the function Council members discussed the pros and cons of the proposal LOVER MOVED AND WHITMAN SECONDED TO AMEND THE MOTION TO APPROVE FOR ONE YEAR AND DISCONTINUE IT FOLLOWING THAT YEAR. The motion failed by a 3 -3 roll call vote, Johnson, Bonlender, Cawley voting nay The original motion passed by a 4 -2 roll call vote, Lover and Whitman voting nay 5% rate increase to administer Dial -A- Dumpster program, bi- monthly charges paid by customers, 2008 cost $15,600, Unbudgeted BONLENDER MOVED TO APPROVE. The motion died for lack of a second NOTE Following the last item discussed on the wrap up document, CAWLEY MOVED AND BONLENDER SECONDED TO APPROVE THE DIAL -A- DUMPSTER PROGRAM After discussion, the motion failed by 4 -2 roll call vote, Edler, Lover, Johnson and Whitman voting nay Equipment rental Install vehicle wash fluid containment system, Environmental fund, $100,000, budgeted LOVER MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by unanimous voice vote Parks and Recreation Parks staff working with special task force reviewing options to eliminate financial subsidy for Fisher Golf Course, Parks fund LOVER MOVED AND WHITMAN SECONDED TO APPROVE. The motion carried by unanimous voice vote Increase certain fees and charges for Parks and Recreation, Parks fund, Revenue $22,000; budgeted • By request, Denise Nichols, Parks and Recreation Manager, reviewed the increasing fees EDLER MOVED AND BONLENDER SECONDED TO APPROVE. Following discussion, the motion carried by a 4 -2 roll call vote, Cawley and Whitman voting nay 0 DECEMBER 4, 2007 — BUDGET WRAP UP 0 Harmon Center improvement — parking lot reconfiguration; Parks & Recreation capital, $35,000; budgeted CAWLEY MOVED AND BONLENDER SECONDED TO APPROVE. Following discussion, the motion carried by a 5 -1 roll call vote, Lover voting nay Council Member Johnson raised the issue of discontinuing the "Movies in the Park" program Could costs for the program be reduced by volunteer help? Mrs. Nichols explained the requirements of staffing due to the size and cost of the screen, as well as the copyright cost for the movies JOHNSON MOVED AND CAWLEY SECONDED TO RESTORE THIS ITEM ($5,000) INTO THE PARKS BUDGET IN THE HOPES THAT A PORTION OF IT COULD BE FUNDED PRIVATELY The motion carried by 5 -1 voice vote, Whitman voting nay Mrs Nichols said that staff would look for sponsorships. Cemetery 20% increase fee schedule for Tahoma Cemetery; Cemetery funds, Revenue $20,000, budgeted JOHNSON MOVED AND BONLENDER SECONDED TO APPROVE, AND TO ADD A REQUEST TO OUR LEGISLATIVE PRIORITIES THAT WOULD ALLOW US TO INCREASE THE PERCENTAGE WE CAN USE BEYOND JUST THE INTEREST ON THE PERPETUAL CARE MONIES. The motion carried by unanimous voice vote WHITMAN MOVED AND CAWLEY SECONDED TO DIRECT STAFF TO PREPARE THE FINAL BUDGET ORDINANCE FOR 2008 INCORPORATING TODAY'S POLICY DECISIONS, AND PREPARE THE LEGISLATION TO ENACT THE ADJUSTED RATES. The motion carried by unanimous voice vote 3. Adjoumment CAWLEY MOVED AND LOVER SECONDED TO ADJOURN TO EXECUTIVE SESSION AT 5:00 P.M. FOLLOWED BY THE REGULAR BUSINESS MEETING The motion carried by unanimous voice vote The meeting adjourned at 11.08 a.m READ AND CERTIFIED ACCURATE BY ATTEST CITY CLERK COUNCIL MEMBER DATE COUNCIL MEMBER DATE DAVID EDLER, MAYOR 0 Minutes prepared by Linda Watkins. A CD and DVD of this meeting are available in the City Clerk's Office