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HomeMy WebLinkAbout03/22/2011 Council Retreat 458 YAKIMA 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. 459 March 22, 2011 — Council Retreat • Transition issues: It is unlikely that a new 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 5 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 5 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 • 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. 2 460 March 22, 2011 — Council Retreat 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. Proposed Regional Fire Authority study 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 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. 3 461 March 22, 2011 — Council Retreat 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 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. 4 462 March 22, 2011 — Council Retreat 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 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. 5 463 March 22, 2011 — Council Retreat 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. 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. Adjourn 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 �c�C ' / /COUNCIL MEMBER DATE r / COUNCIL M. ER DATE ATTEST: 111 j 144 CITY CLERK MICAH CAW , MAYOR Minutes prepared by Linda Watkins. A CD and DVD of this meeting are available in the City Clerk's Office 6