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Home My WebLink About11/09/1984 Adjourned Meeting 412 NOVEMBER 9, 1984 ADJOURNED MEETING - BUDGET REVIEW The City Council met in session on this date at 1:30 p.m. in the Council Chambers of City Hall, Yakima, Washington. Council members present were Mayor Clarence Barnett, Henry Beauchamp, Lynn Buchanan, Lynn Carmichael, Shirley Doty, and Jerry Foy. Council member Jack Sparling absent. UTILITY TAX City Manager Dick Zais reported the City was notified that the telephone company has overpaid its utility tax by $85,000 due to a Pacific Northwest Bell camputer error during the reprograming of its billing system. He stated this amount results in a shortfall of $201,188 in 11/ projected revenues. He further commented the actual repayment will be $98,628, due to revenue being projected for the last three months of the year, based on higher monthly payments. The impact will be harder on next year's budget making the projected year-end cash reserve $282,898 which is generally for salary increases and unbudgeted expenses. WATER Dennis Covell, Director of Engineering & Utilities, gave a brief overview of the Water/Irrigation 1985 Preliminary Budget. Ty Wick, Superintendent of the Water Division, was available to respond to Council's questions. Mr. Wick justified the budgeted amount of $10 for hiring boy scouts to paint hydrants. Council member Doty asked Mr. Wick to clarify Account 470, Public Utility Services, and Account 560, Interfund Transfers. Mr. Wick responded these costs are the Water Division's share of rental on the facilities at the City Shop Complex. (Council member Carmichael temporarily absent at 1:45 p.m.) Council member Foy asked if the floor space had increased or if every division received an increase of 39%. Council member Doty asked the Water Division to take a look at this issue in their spare time and come back to Council. City Manager Zais stated he will ask Dave Rhodes, Director of Public Works, and Don Toney, Fleet Manager, to break down those increased plant expenses. (Council member Carmichael present at 2:00 p.m.) Discussion followed regarding the Oak Flats rental houses. IRRIGATION Mayor Barnett asked for a discussion on the total impact on equipment replacement charges. (Council member Carmichael absent briefly). Robert Wheeler, Accounting Manager, explained the Capital Outlay requests. City Manager Zais expanded on Account 530, Interfund Charges, which covers Customer Service and City Service costs. Staff recommended replacing the Glenn Drive Reservoir Fence and Council member Doty commented when a new pump has to be provided, the district pays for it. SEWER Dennis Covell turned the 1985 Budget presentation for the Sewer Division over to Chris Waarvick, Wastewater Superintendent. Following a brief introduction of the 1984 Sewer budget. Mr. Waarvick was available to II/ respond to Council's questions pertaining to the Sewer Operating Fund. Mr. Waarvick referred to page 319 and reported the actual authorized personnel total should read 38.9. Mr. Waarvick explained that the 473 budget is the Sewer Division's commitment and "contract" to the system and the public. Mayor Barnett asked for clarification on Fund 218, Capital Improvement, in the Expenditure Summary which shows $200 in Column 7 on page 322. Mr. Waarvick responded this L.I.D. projection was due to the West Valley increase and the computer could not handle it, so the last column shows 0. Council member Beauchamp stated his concern is that sewer costs are so expensive, and asked if it is possible to lower rates. City Manager Zais reminded Council of the report they just received from the Utility Rate Advisory Board (U.R.A.B.). He stated the City must make sure to have a debt service charge reserved and must maintain the same rate structure. He further stated the City must have another rate analysis in the 1986 Budget. Discussion on rates followed. Mr. Covell explained the County is expected to be working with the City to accommodate the West Valley projects. Mr. Waarvick reported the budget should read 4.7 billion gallons of sewage under Service Unit 232, 413 Wastewater Treatment, on page 329. (Council member Beauchamp absent briefly). Council member Doty asked for a correction on page 331, Capital Outlay Requests, Service Unit 232, changing the 36 inch Aluminum Extension Ladder to read 36 foot. Council member Carmichael asked for clarification on Why Bar Screen Bins are so special and Mr. Waarvick explained their use. Council member Carmichael asked for further information on the Industrial Metal Lathe. John Johnson, Mechanical Maintenance Supervisor, explained potential savings by utilizing experienced staff in fabricating items now purchased and repaired by outside vendors. He stated there are approximately 300 motor driven pieces of equipment involved. Mr. Johnson presented Council members pictures showing a shaft and housing for a pump. II/ City Manager Zais asked Mr. Waarvick to review Service Unit 234, Industrial Wastewater Treatment, for the Council. Mr. Waarvick explained the City now treats the wastes of Hop Extract, Washington Juice, and Del Monte. The City pays upfront and the industries utilizing the sprayfield system reimburse the City, the following year. The bankruptcy of Libby's or CCG (California Canners and Growers) and the eventual scrapping by Rabin Bros. left the City in a precarious legal position because no legal document or contract has been signed concerning the outstanding debts which continue, even if someone pulls out. The City has seen some recovery through legal action on some of those monies. He further stated the future potential problems if those users decide that the amount they pay is too much. The City could conceivably accept Hop Extract and Washington Juice into the domestic system, however, he doubts very much Whether the City can handle Del Monte waste in the domestic system. Bruce Bates, Process Control Supervisor, stated he sent invitations to the pesidents and vice presidents of these companies and only two were present to discuss the problems of the sprayfield. Discussion followed regarding the industrial wastewater treatment problems. (Mayor Barnett absent briefly.) Mr. Waarvick stated there is a need for a commitment fran the industrial waste contributors to be able to plan for the future. City Manager Zais commented this issue must be addressed by both staff and Council as it has potential critical consequences. (Council member Buchanan absent briefly.) Mr. Waarvick gave a brief review of Personnel Reclassifications saying the most important job descriptions to consider are the maintenance mechanic series. (Council member Carmichael absent briefly.) Council member Doty expressed concern about the restaurant business community and the strong waste surcharge on pages 336 and 337. Mr. Covell stated staff would be happy to invite them to meet for a discussion. Mayor Barnett stated he would like to invite staff to come back and justify the need for additional staff which is addressed on page 338 in the first paragraph. Council member Foy expressed concern regarding Item D, No. 2-d on page 339, stating he felt it was negative and should not be included. Mr. Waarvick stated paragraph two on page X contained langauge that was not accurate. (Council members Carmichael and Doty absent briefly.) Mr. Waarvick expanded on the 476 Fund - Sewer Construction explaining this fund does not include the additional $500,000 recommended for transfer from the 473 Fund. Mr. Waarvick II/ presented a copy of a memo he sent to Denny Covell, Director of Engineering & Utilities, dated November 7, 1984 regarding Philadelphia Gear Mixers Status, for the Council's information. He stated the Wastewater Plant has achieved a significant increase in performance in 1984. He further stated we have not reached the DOE (Department of Ecology) ammonia requirements, however, DOE is not going to exert pressure as long as they see we are making progress. Mr. Waarvick stated the City is communicating closely with DOE and Philadelphia Gear. (Council member Foy absent briefly.) There being no further business to come before the Council, it was MOVED by Doty, seconded by Buchanan that this meeting be adjourned at the hour of 4:20 P.M., to then meet on Tuesday, November 13 at 9:30 a.m. in the Council Chambers, City Hall, Yakima, Was Ington. r. .usly carried by voice vote. Sparling absent. READ AND CERTIFIED ACCURATE BY _IAA DATE r OOVNCIL 41 L . N■ .4 ■ DATE cnuN 0 ATTEST: . i41 0 - - . . 4OCCo-deld■-■". 40!".■ CITY CLERK MAY:-•