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Home My WebLink About11/16/2010 Adjourned Meeting 369 YAKIMA CITY COUNCIL ADJOURNED MEETING — BUDGET REVIEW NOVEMBER 16, 2010 – 9:00 A.M. – 12:00 NOON COUNCIL CHAMBERS – CITY HALL 1. RoII Call Present: Council: Mayor Micah Cawley, presiding, Assistant Mayor Kathy Coffey, Council Members Maureen Adkison, Dave Edler, Rick Ensey, and Bill Lover Staff: City Manager Zais, Finance Director DeBord, Deputy Finance Director Epperson, and Acting City Clerk Claar -Tee Absent: Council Member Dave Ettl 2. Council Budget Review by Priority /Department/Service Unit Other Funds • City Administration – Insurance; Community Relations; Wastewater; Stormwater; Water; Irrigation City Manager Zais explained that these are areas supported by dedicated revenues. Community Relations - Manager Randy Beehler described the duties of the division and the supporting funds. They expect to continue the transition to an all- digital facility and will also do some facility upgrades in 2011. They have a strong reserve fund consisting of primarily of grant money that can be used only for YCTV and YPAC facilities and equipment. They are planning to use a portion of those reserves for a complete redesign of the City's website and may use a portion to help fund county -wide public safety records management. Wastewater - Manager Scott Schafer showed a Power Point presentation on capital improvements. They have a policy issue relating to funding of the projects. They are beginning the process of acquiring and implementing an asset management software system ($200,000 in 2011 and $100,000 in 2012) that will track maintenance costs and depreciation value and recommend changing out equipment on a proactive basis. A video entitled "Liquid Assets" emphasizing the criticality of water and our water infrastructure was shown. Discussion covered the large need for infrastructure and how in future years it will take rate increases to accomplish. Stormwater - a Power Point presentation on stormwater was shown. Discussion covered the stormwater infrastructure, major accomplishments, and current utility rates. Water and Irrigation - Manger Dave Brown assured Council that demands for drinking water will continue to be met. He reviewed their ongoing projects and advised the water system plan, required every six years, will be completed. He reviewed the status of their capital projects. A rate increase of 5.5 %, previously adopted by Council, is scheduled in 2012. Mr. Brown then reviewed the status of irrigation projects; consolidating diversions from Fruitvale and the old Union Canal at the Nelson dam. There is a policy issue recommending a 5.5% rate increase for the overhead and maintenance portion every year for the next four years. The capital rate has remained the same since 1997 and • they are not proposing to change it. 370 ADJOURNED MEETING — BUDGET REVIEW NOVEMBER 16, 2010 • Finance — Community Services; Public Facilities District; Contingency Fund; Capitol Theatre Reserve; Debt Service Community Services - Deputy Finance Director Epperson noted that the Healthy Families program is in its fifth and final year. All of participants in the marriage classes are willing to be contacted in five years for a long term follow up. Program Director Linda Kraft is researching next steps to continue the programs. Public Facilities District — Revenues, which are sales tax credit, have dropped, but they still will be able to meet the debt services. Contingency Fund — Mrs. Epperson stated $50,000 is a transfer from the General Fund and there is $200,000 available for unforeseen circumstances that may arise throughout the year. City Manager Zais advised that the budget has been used for a few items this year; e.g. the overage cost for elections. It is projected that $50,000 will pay a portion of our share of the Gang Free Initiative Facilitator /Coordinator. Capitol Theatre and Debt Service — This is what is left of the insurance settlement. In the next few years we will have to look to the PFD money to replace it. • Community and Economic Development — Economic Development; Office of Neighborhood Development; Downtown Yakima Business Improvement District (DYBID); Central Business District (CBD) Capital Improvement Fund; Trolley; Front Street Public Business Improvement Area (PBIA); Convention Center; Tourism Promotion Area; Convention Center Capital; Capitol Theatre; Capitol Theatre Construction Office of Neighborhood Development — CED Director Morales reviewed the HOME and Block Grant funds. He stated that housing repairs have become increasingly expensive to manage due to the number of contracts. They are proposing to save money by reinstating the home remodel technician position to do the work in -house and be more responsive to the individual needs of homeowners. This policy issue request does not have a general fund impact. Convention Center - John Cooper, President and CEO, said our area has not been affected as greatly as other regions of the country. The expectation for leisure travel on a national level will slowly rebound in 2011. On a local level, the lodging tax revenues have improved this year. Future bookings are up by 31%. He spoke about their five - year plan to continue to upgrade the facility. They also have an art piece under consideration for which they are following the new Arts Commission process for acceptance of public art. Capitol Theatre Construction — Engineering was involved in the "Black Box" project. Moen Construction will be giving assistance with installation of brick pavers on the alleyway in the spring of 2011. 2 37,1 ADJOURNED MEETING — BUDGET REVIEW NOVEMBER 16, 2010 • Engineering — Arterial Street Capital; Public Works Trust Fund; REET 2 Capital Fund; LID Construction Control Fund; Cumulative Reserve for Capital Improvements; Growth Management CED Director Michael Morales reviewed Engineering's budget reductions, including elimination of a development engineer and a construction inspector. He noted the importance of maintaining staffing in order to provide revenue. Parking permits, parking fees, and metering parking on the streets were discussed. Also discussed at this time were the underpass capital improvement projects and the Paladin computer system encompassing permitting, codes, business licenses, utility services, meter reading, billing, etc. • Public Works — Administration; Transit; Refuse; Equipment Rental; Environmental Fund; Recovery Program Grants Refuse — Manager Nancy Fortier reviewed the policy issue to purchase 64- gallon yard waste carts to allow for a combination of 64- gallon yard waste and 32- gallon garbage at the same monthly rate as a 96- gallon cart. This would help separate yard material from garbage for transport to the compost facility. Because he will be unable to attend the public hearing this evening, Dave McFadden, President of New Vision, made his budget presentation at this time. CED Director Morales gave an opening statement underscoring the importance of maintaining the agreement and partnership we have with New Vision. It is important to understand economic development as an activity is grossly underfunded for a city of 85,000. Mr. McFadden reviewed the services they provide and their accomplishments this year. It was the consensus of Council to hold their next budget meeting November 30 Council Member Edler said he would be recommending an across - the -board salary reduction to labor costs as opposed to eliminating people. He also suggested stepping away from the Priorities of Government model and how it may be the right time to move the community towards a parks district. During discussion, Council Member Edler challenged the Council on whether to make their way through the presented budget or take other avenues such as his suggestion for an across - the -board cut in labor costs or eliminating the Quality of Life module. He said he is directing the City Manager to provide some pros and cons on that. City Manager Zais' warned that these are not things that can be done quickly. 3. Adjournment ENSEY MOVED AND COFFEY SECONDED TO ADJOURN TO NOVEMBER 16, 2010 AT 5:00 P.M.FOR AN EXECUTIVE SESSION FOLLOWED BY THE REGULAR COUNCIL BUSINESS MEETING AT 6:00 P.M. The motion carried by unanimous voice vote. The meeting adjourned at 11:58 a.m. • 3 372 ADJOURNED MEETING - BUDGET REVIEW NOVEMBER 16, 2010 READ AND CERTIFIED ACCURATE BY r COUN MEMBER DATE `-6/7 UNCIL MEMBER DATE ATTEST: T h2j CP CITY CLERK MICAH CAWLEY, MAY! Minutes prepared by Linda Watkins. A CD and DVD of this meeting are available in the City Clerk's Office. • 4