HomeMy WebLinkAbout06/21/2011 04A Draft Minutes 03-22-2011 RetreatYAKIMA CITY. COUNCIL
RETREAT
MARCH 22, 2011
2:00 pm — 7:00 pm
Yakima Convention .Center — Suite 300
Roll Call
Present:
Council: Mayor Micah Cawley, presiding, Assistant Mayor Kathy Coffey, Council
Members Maureen Adkison, Dave Edler, Rick Ensey, Dave Ettl and Bill Lover
Staff: City Manager Zais, Acting Assistant City Manager Morales, Community Relations
Manager Beehler and Deputy City Clerk Watkins
Prior to the start of the meeting, Michael Morales introduced a group of ten Oregon State University
students who are in Yakima doing community service on their spring break.
Recruitment and selection of next city manager
Seven firms responded with Statements of Qualifications. Council discussed how to proceed. It
was the consensus of Council to narrow the field down to three companies. Each. Council Member
stated their preferences; the following firms were selected for further review:
Colin Baenziger & Associates
Waldron & Company
The Mercer Group
It was suggested that Purchasing Manager Sue Ownby conduct the reference checks. Also
decided was for Mayor Cawley to contact mayors of cities who had used the various companies to
learn about their experiences. There was a recommendation that someone speak with former
Assistant City Manager Dave Zabell regarding his experience with Colin Baenziger & Associates
since the City of Fife used.that firm in his hiring process. Following the reference checks, the full
Council will have the opportunity to interview the companies. The interviews were scheduled for
April 5, 2011.
Randy Beehler said the next subject was to determine the process for the interviews. Again, it was
suggested that Sue Ownby would develop a standard set of questions to ask each company. Each
firm will be given 45 minutes and it was noted that they will be paying their own expenses.
If the Council is comfortable with making a decision following the interviews, it could be made at the
Council business meeting that is scheduled the same evening. If the selection is made that day, it
appears it would take most of April, May and June for them to provide candidates to Council.
March 22, 201-1 — Council Retreat
• Transition issues:
It is unlikely that anew City Manager will be selected prior to Dick Zais' departure. Council Member
Edler questioned whether to use Michael Morales as acting city manager because it leaves a large
void in Community and Economic Development. Mayor-Cawley referred to the original plan for an
interim City Manager and how that was not successful. He said that for now he felt the City was
stable the way we are. Council Member Edler said he was recently asked for a meeting regarding
the mill property and was told that our situation is jeopardizing the project. That discussion was
postponed until the mill site portion of the agenda.
It was stated that although it is not yet determined who will be the new city manager, we know we
will need to have someone as an interim city manager after July 5th. Council Member Edler said he
favored the two companies who projected their timeline would provide a candidate closer to that
date. If we are not able to meet a'July 5th timeline, Mayor Cawley expects that Michael Morales
would step into the acting role. Randy Beehler noted that would cause a vacancy in the second
executive position, which would affect other positions. Council Member Ensey suggested these
details should be left to the department heads who should come to Council if they are having
problems. He suggested the meeting discussion focus on determining what qualities we want in the
new city manager. Council Member Edler claimed that if it was his decision alone, he would return
Michael Morales to CED to concentrate on current critical projects, again referring to the mill site
project. Mayor Cawley stated that the person in the number one position would need to be involved
in that project and he feels Michael is the best choice when Dick leaves. These comments
instigated quite a lengthy discussion. Major points made during that discussion were: 1) We need
another executive level staff person in administration; 2) Most important is insuring we get off to a
good start in the search process for a city manager; 3) As we get further into the process, we will be
able to determine if we can hire someone by July 5; 3) One of the new city manager's first
responsibilities will be to appoint three of the highest level positions; 4) The transition plan should
be firmed up by May; 5) City Manager Zais stated that he feels that Michael Morales is the best
person to be acting city manager on an interim basis if we do not have someone by July 5th
i Qualities of a City Manager
Council Member Ensey referred to previous comments he has made about the culture at city hall.
He thinks our culture is broken; the citizens are often confused and decisions are made for the
benefit of bureaucrats, not for the good of the citizens. Assistant Mayor Coffey reacted stating a
corporate culture is how employees look at themselves, how they feel about their role in the
corporation, and then project that toward the people they serve. Council Member Ettl .commented
that in the corporate world, a customer can go somewhere else. In our world, they must tolerate the.
service they get. Council Member Edler referred to citizen discontent and their desire to "cut off the
oxygen to the government." He said he is not sure the hiring of a city manager is going to cure that
issue.
Mayor Cawley said he would like to see a talented risk taker for a CEO. Currently, our manager
and staff are trying to keep the Council happy. If Council directs staff to bring some options
forward, he doesn't want to hear we cannot do it.
Council members decided to consider the qualities they find most important for the next city
manager and be ready to discuss them with the chosen search firm.
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March 22, 2011 — Council Retreat
Proposed Regional Fire Authority studv
Acting Fire Chief Dave Willson was available for questions. Mayor Cawley mentioned that at the
study session, Council wasn't comfortable with creating a study group or a committee to look into
whether or not to have a Regional Fire Authority. Acting Chief Willson said the purpose of the study
was to recommend to the Council whether it was economically feasible to pursue the idea. In
answer to the question of whether a regional fire district would cost more, Chief Willson advised it
would because if we design a fire department to be successful for the next ten to fifteen years, we .
have to plan for increased costs. The key is what level of service do you want and that is when the
question of economic feasibility comes into play. Currently, we are paying $1.63 per thousand for
fire protection and Union Gap is paying $2.14 per thousand. If we had the same service, the
combined amount would be $1.85 per thousand, which could be distributed more equitably. Chief
Willson pointed out that over the last few years, expenses have increased at a much higher rate
than the budget has. As a result, we are not designed to succeed in the coming years. Does the
public want to retain service? If so, something has to be done to meet that need. The only way we
met it this year was by using reserves and taking a pay cut.
Union Gap did not adopt their resolution on this issue but will be reviewing it again. Mayor Cawley
thinks Yakima should wait until Union Gap decided what they want to do. Council Member Edler
commented that they are having this discussion because we recognize we can't afford to provide
services at the same level anymore. It will take strong political will to move toward a fire authority or
metro park district. He shared that the department head for Parks has suggested this might be the
time to begin discussions with the Parks Commission about what services we can provide under the
current-funding system. He said that the city manager has recommended increasing the in -lieu
utility tax to provide more revenue. There has also been a conversation about red =light cameras,
which he feels is a revenue producing opportunity. Fourteen months ago we were going to talk
about a street bond but we still have not done that. Other communities are considering a $20
license fee. Do we want a conversation about a revenue package? We're saying we don't think
there is a political will, but is it time to truly begin exploring these options? The other option is to
continue to cut expenses and do nothing.
Mayor Cawley agreed that we do need to go to the voters; e.g. for a street bond and the Regional
Fire Authority. Assistant Mayor Coffey said she couldn't promote anything without reviewing a .
detailed study on how it will affect the citizens. She thinks we will have to look at a tax increase on
certain issues in order to maintain where we are, but those discussions have to include citizens and
we need information before we can start a conversation. Council Member.Edler stated a $20 fee on_
car tabs could generate a million dollars a year to preserve streets. The 6% in- lieu -of tax on utilities
would also generate revenue and both are councilmanic. We should study the Regional Fire
Authority first, but why would we do that in this climate if it would fail at the polls. Council Member
Ensey didn't agree a tax increase is an either /or choice. He thinks a.third option would be related to
collective bargaining which he feels is responsible for our circumstances. He suggested eliminating
collective bargaining. COFFEY MOVED AND ADKISON SECONDED TO STUDY THE
REGIONAL FIRE AUTHORITY. The motion carried 5 -2; Ensey and Lover voting no.
Policy Priorities and Strategies
• Revenues, Streets, Labor Unions /Negotiations
Council Member Edler raised a number of potential revenue options that were prepared for this
•.meeting. He noted that the State Transportation Committee is "right- sizing" the Department of
Transportation (eliminating 800 jobs) and is putting a revenue package together. He said his .
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March 22, 2011 — Council Retreat
frustration is that our roads are failing and we have not yet committed any funding to preserve them.
He pointed out that the city manager saw the problem and brought forward a suggestion of an in-
lieu tax on utilities to generate $2.1 million. He said we have to let the citizens know where we go
from here; whether to ask citizens to increase their own taxes, or implement councilmanic
increases.
Council Member Ensey thinks we need to cut a million dollars out of our budget to prove to the
citizens that we are capable of doing it.
Mayor Cawley said we need to control labor costs.
Council Member Ettl referred to an article he read that the City of Redmond set a cap defining the
acceptable price of government. He asked if we know what the reasonable cost is to provide
acceptable government in Yakima.
Council Member Lover said we lack the use of zero -based government, meaning all departments,
start with nothing and have to defend /prove what they need. He referred to strategies Governor
Locke used; view government as a single enterprise; achieve results at less cost through creative
solutions, re- prioritize spending and consolidate similar activities in different agencies. He said we
should require answers to six questions: 1) Is the activity a core function or commercial in nature?
2) If it is a core function, can the service be provided more effectively through competitive
contracting? 3) Does it provide a broad public benefit or only serve a special few. 4) Are there
duplicate activities of non - profits or other private initiatives? 5) Are there duplicate efforts of other
programs? 6) Does the activity demonstrate quantifiable performance? He said we may not like
the answers but it is a way to stay within the budget without increasing taxes.
Council Member Edler distributed information on the amount spent in employee deferred
compensation stating that these are the benefits that make it almost impossible to pass anything on
the ballot. City Manager Zais clarified that deferred compensation, salary, and benefits, are all
considered part of bargaining. A second issue is that any of those that are tied to state pensions
are part of previous'considerations with respect to the state and are deemed to be a vested
property right for existing employees. Council Member Lover suggested negotiating with all
bargaining groups for a replacement for longevity with a performance -based bonus system or
enhanced match for employee 401 K. City Manager Zais explained the risks of arbitration and noted
that we are comparably below the average and stand a risk of the award being higher. The end
result of that kind of negotiating is more people will lose their jobs, but Council can direct the city
manager to do that.
Council Member Edler said, if we're going to increase revenues, he thinks it has to be councilmanic.
The other option is to wait for the next budget session and position ourselves for whatever we
decide to do at that time. He doesn't think a street bond is the answer. Mayor Cawley said the
issue has been, discussed in committee because we have not decided what the projects are nor felt
the time is right for a street bond.
LOVER MOVED AND ENSEY SECONDED TO MOVE THE LABOR NEGOTIATION. SUBJECT
INTO THE LABOR NEGOTIATIONS COMMITTEE TO DISCUSS WITH MANAGEMENT AND
HUMAN RESOURCES. Council member Ensey requested that they look into what can be done
with the unions that aren't affected by binding arbitration. The motion carried by a unanimous roll
call vote. .
• Reserves
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March 22, 2011 — Council Retreat
41 Council Member Lover would like an enhanced reserve established with an amount (1 % of general
government, about $580,000) in an account that only Council can access by declaring an
emergency with a super majority vote. LOVER MOVED AND ENSEY SECONDED TO SETA
POLICY REQUIRING FIVE VOTES TO PASS ANY LOCAL TAXES. Following a side -bar
discussion between Ensey and Lover, Lover withdrew the motion.
•
Public Safety
The goal was to develop a policy strategy to proceed through the next step in the 911 process with
the County.' Michael Morales, Acting Assistant City Manager, said they were trying to get definition
on the letter from the County and that there are a number of other parties involved. At the 911
Operations Board meeting yesterday, Commissioner Elliott said there are two different issues.
Fundamentally, the Commission was being asked to increase the phone tax and they felt the
increase was not justified. They wanted to continue to discuss the issue but the impact on the 911
budget was to use reserves to meet operational costs. Regardless of who ends up with the
contract to provide service, the justification for the phone tax increase was necessary so the
Commissioners could make a decision this quarter. There is a meeting tomorrow that Council
Member Lover will attend for Mayor Cawley. It was noted that this should not be characterized as a
City /County contractual dispute as there were many more groups involved.
Commissioner Leita was present for this discussion and commented that there are adequate
reserves in 911 to operate for a year or more. The County's position is they want value for tax
increases and they did not think it was there. The expired contract has been extended during this
interim time. The Commissioners are evaluating three principal options; 1) continue the existing
911 services and pay for the additional expenditures once justified; 2) have a stand -alone 911
system consolidated IPSS since all technology will be integrated very soon, or 3) have a stand
alone County department (not their preferred option).
• 911 Sustainable GFI public safety
Council Member Ettl explained they are pursuing a grant for $240,000 per year for three years
which would pay for a coordinator. They have a consultant whose contract will run out in October.
They hope the major planning efforts will be completed by then so the coordinator can proceed. If
we do not get the grant, what will be the funding source for the three years? OJJDP money will
hopefully be available for program operation but there will need to be a coordinator. City Manager
Zais said we had the money and used contingency funds for a portion of last year. The current
police fund allocated $75,000 from professional services. Assistant Mayor Coffey suggested that
$70,000.directed to the Southeast Community Center could be reevaluated. Mayor Cawley
directed the. City Manager to determine funding sources for the next stage in case we do not get the
grant.
Council Member Edler questioned whether it is really the City of Yakima's responsibility to provide
intervention and prevention. Council Member Lover questioned where this responsibility will fall
and commented that it has to survive the priority system. Is this a core function of government?
Council Member Ettl responded, if the concern is that suppression is core but prevention and .
intervention are not, where is the master list of what is? A discussion followed on the use of funds,
how we compare to the western state average and emphasis patrols. It was noted that if we don't
have intervention and prevention in place, we cannot apply for the grants.
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March 22, 2011 —. Council Retreat
Mill Site Update
An issue that arose in the Neighborhood Development Committee was that the City wasn't moving
forward in a timeframe acceptable to the owner. Michael Morales stated it is important for everyone
to be aware of the number of entities involved in a project of this size. There are three different
property owners, as well as the involvement of other federal and state agencies who are part of the
permit process. After 100+ years of industrial use, there is a great deal of clean up on the site. He
referred to a timeline that extends from 2008 to 2016. Five years from July 1, 2011 bonds have to
be issued. On July 1, 2011, the City will enact an ordinance to allow us to start collecting state
revenue matching funds.
Also discussed was the Bears' request for a new stadium at the mill site location, which led to the
question of whether there is the desire for a public facility and an aquatics center. There needs to be
further discussion with the Bears on funding the project without implementing a tax package.
Airport issues
There have been conversations about many pending issues, which Commissioner Leita suggested
the Intergovernmental Committee review. Council Member Edler pointed out that Commissioner
Elliott is now the County's representative to the airport. He also recommended that if the airport
issues are to be discussed by the Intergovernmental Committee, a member of that committee
should serve on the Airport Board.
Ad'ourn
ENSEY MOVED AND COFFEY SECONDED TO ADJOURN. The motion carried by unanimous
voice vote. The meeting adjourned at 6:50 p.m.
READ AND CERTIFIED ACCURATE BY
COUNCIL MEMBER DATE
COUNCIL MEMBER DATE
ATTEST:
CITY CLERK MICAH CAWLEY, MAYOR
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