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HomeMy WebLinkAbout10/15/2020 02 Council Review of Proposed 2021 Budget - 4 of 4 1 **" sm. • 11..:41 RPUkaTh:V BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STAT EM ENT Item No. 2. For Meeting of: October 15, 2020 ITEM TITLE: Council Review of Proposed 2021 Budget-4 of 4 SUBMITTED BY: Bob Harrison, City Manager Steve Groom, Director of Finance & Budget SUMMARY EXPLANATION: This is the fourth and last scheduled study session on the proposed 2020 Preliminary Budget. 9:00 — Introduction— Bob Harrison Follow-up from prior session IT Department- John Carney Policy Issue Presentations 9:10 Perpetual vehicle funding - Steve Groom 9:30 Mill Site Development funding - Joan Davenport 9:50 Solid Waste Collection rate increase - Loretta Zammarchi 10:10 Questions, discussion, direction 10:20 Council deliberations ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: ATTACHMENTS: Description Upload Date Type d policy issues 10/13/2020 Comer Memo Distributed at the Meeting IO -'1 10/14/2020 2021 Budget Study Session #4 Policy Issues Clear — Reliable Trustworthy City Manager Intro Bob Harrison Follow-up — General Fund Payroll This info is always in Adapted Budget Book Wage, pis s9.ca aea 3S7,253 tgla ;sic ua, 32 aoca Clan./.11.31 673.7 a®. o legmoat., r,3a¢ 628x.3 al taR<51 a55,d043. 180 Mtn.. out LOS:a6 368a43 22.726 M:,&: I63P5 sm.655 1. 230 Code As-mi.-vie, 1,0,133 i4.77& 2532422 2M n1m 55,856 Fcanomc iasa abv6 310 Q - 3a,in w9t 5.4,lfl564369 1`On e i38144Il 14.t61,673 44D,56: 754,1. 269,98 612 -, ie.ew 9&�� W.I. 1. ,a. 6okennaoe - ,1,257 mo-.3 SS,S. ¢a1> 570cumo„n5 374. 11607a ers3a as nv5.cn.e.r5 625.573 353.E 6®.a3 G 34,616.6. 1164e453 59466463 33.1% 3.314C 1.11 sentT:'32� 34433,1.365 5. 3ana.x Go.envntTue a3,13:,5] 15,6;545 5.65,33. 1 10/14/2020 Follow-up — Debt Timeline This info is in Preliminary Budget Book pp. 20-21 Follow-up — Debt Capacity Figures from 2020 Convention Center Debt Issue: Assessed Valuation (2020 tax year): $7,406,439,444 Voted and non -voted capacity is 2.5% followmg 2020 DoLt ssue, Remaining non -voted General Purpose Debt Capacity: $55,165,828 2 10/14/2020 Today's Sessions 9:00 IT Department — follow-up 9:20 Vehicle Replacement funding 9:50 Mill site development funding 10:10 Refuse Rate Analysis and proposal 10:30 Discussion, wrap-up, direction Clear — Reliable — Trustworthy IT Department John Carney 3 10/14/2020 2021 Budget Policy Issues • Vehicle Replacement Funding • Millsite Development Funding • Refuse Rate Perpetual Vehicle Replacement Financing Finance — Steve Groom Fire — Aaron Markham Police — Matt Murray City Manager — Bob I Iarrison Perpetual Vehicle Replacement Financing Fire: # of vehicles 36 Total Value $13,000,000 Useful lives 7 — 17 years Replacement / yr $800,000 Police: # of vehicles 130 Total Value $7,800,000 Useful lives 7-10 years Replacement / yr $1,120,000 1 10/14/2020 Perpetual Vehicle Replacement Financing Example • 8 Fire • Replacement • Idea 1: Engines ly rep e:z ace :am with 17-year cost 5750,000 one every : useful each other year, lives budget rwox7 $352,000/yr .7 ^ «ix ere xo: -AI rw.ov n: aSOP - 2. ?50, ..F:u,z E. 3010 ROSWVER on.. 750.000 7 sr -i -M13.5 -s. 910 nmcaexlE• wwu ,50 WO I> DY 74o. Perpetual Vehicle Replacement Financing Example 2: • 102 Police Patrol cars 7-yr lives? u Y> Rea Y> Re q 5 • Replacement cost $72,000 ea. replace 14 ever year, • Ideally P Y Y budget $1,000,000/yr 2012 2013 2014 33115 zo16 2017 2018 2019 2020 11 7 67 0 1 6 5 0 5 2019 2020 2021 2023 2024 2026 2026 2027 S 799,128 508,536 4.967 416 72.648 436.888 363,240 363.240 102 6 7 410.096 — Perpetual Vehicle Replacement Financing Good News: Interest rates are VERY low • 0.9% for 10-year financing • 0.5% for 5-year financing Bad News: No budget for payments So what are our options? 5 10/14/2020 Perpetual Vehicle Replacement Financing — Pay -go Yr nTs Ins •••• 13.092,000 •737 800.7001_ 850.000 857,000 850.000 850.000 — Perpetual Vehicle Replacement Financing t 90040 3 rrn Pc vm 10.C7 ..mc es an mac .001 979970 7C,o» ox3� ...00 am.. Rx 0301 �OMO aa7 :CaC .»m .7COO le ce 400. _nm MOM raail 3m.00 mx 719.010 141.90 .030 Se41..'97 TC= oral +m .000.019 ixe 7m Perpetual Vehicle Replacement Financing — Pay -go 440v' ._..: 4 2021 232: 2321 2�s las P•oea 2012 Foe 4.94 72.0.11 722. SO 90 3 To SO. 79 327 tID: Perol 27012 f>o 1039.9 M.C. 90 74.322 :S[ 1M7 Pad Pc. 2012 2012 Fad fad TsTrus 7204 72.3 90 BO 79,827 74C1 TM 1119 Pssmi Pvd MT: 231: Fs. Foe TURA Ts.. 2S. MS.b 90 1.0 P 2012 fad ,939,9 72ae 90 74 CT 1211 Pc. 2012 Fad T MOO 2o. 90 74.1C7 1213 0 Pnal PVG 2012 24V fad Pas ".a E,fr b Mr. 72.3 90 8.0 74 327 74C7 1112 . PS. 2013 2013 Foe eat/ E.F.. LOWS .72ae MO. 3 0 SO 1s127 7• en 1313 P.. 1013 fad To 72a8 90 • MOM IMP Pw7G 2033 Pad Twu1 72.3 22.3 9 0 SO 77 OR 77072 1. +ao Ow, POG 2m.Fad: v Tn., 70 r %/ZOOS 9272w 771072 - IqO .1909 Ped Pce3-.. 7.0. fod: Ta .:.7zaa -._ T2aa a 80 - T7072 T7.071 - ^~.I 1959 I410 Ps.: P.1 : 2017 2018 Fad: Fod. 1,999.0 T8v93 ....72008 •'.12a8 80 B0 --: 72072 -1 1411 3 P :-..noas :..n9 '.172a8 90 -- 80 n,Qn In. PnPaa m.p a noma .. rz^aa ax 5 - ,037-.5884d S 1767_.0 08 S t iti.375 6 10/14/2020 Perpetual Vehicle Replacement Financing 1 Pur<hate 2022 2 22 2023 004 2025 236 2027 11241220 1. MOM 1,22O RG 1120206 1,2202 1,120010 3,124720 Z DcM 227.371 24,371 227,371 227.371 227,371 327.071 227,371 227,371 227.371 2271771 227,372 22'7.371 227,371 227.371 227 371 227, 371 227.371 22).371 227.371 227.371 227,371 227.311 227,371 227,371 227.371 227,371 454,)02 592113 305.434 1,134355 1,136555 2374 eS 163200 20'1,O30 3W,O:O 404000 30D,C3O 601000 70a0,0 Debt 127.371 251.742 33213.3 503,484 536,355 534655 436355 227,371 451, 742 012,113 942.402 355 1,136,355 1,136 355 Perpetual Vehicle Replacement Financing Policy direction being requested: 1) Direct City Manager to provide financing option to the City Council by end of first quarter of 2021 for vehicle replacement. Mill Site Development Financing Joan Davenport 7 10/14/2020 Refuse Rate Loretta Zammarchi Wrap-up City Manager / Council Discussion and Input 10:45 Clear — Reliable — Trustworthy Key Dates Oct 6 Council Study Session 1 8 Council Study Session 2 13 Council Study Session 3 15 Council Study Session 4 Nov 3 Public Hearing and Ordinances on Ad Valorem Tax Rate 1 3 1st Budget Public Hearing 17 Last budget changes 17 2nd Budget Public hearing Dec 1 Adopt Budget 8 10/14/2020 2021 Budget Process An increasingly well -managed city Clear — Reliable — Trustworthy .- 9 Mill Site Project Funding Status Yakima City Council B 0 • et Study Session October 1 1 2020 Mill site c. 2008 MnMikDTh LIFT funding awarded to the City in 2008. Redevelopment District Area (RDA) implemented in 2011. LIFT Basics: • City of Yakima may be reimbursed for qualified expenditures inside the RDA up to $1 million per year. o State = $25 M, City match = $25 M • LIFT reimbursement ends in 2036 (15 years left) • City can continue "pay as you go" annual program or can bond. A bond still requires a match. Pr:uiiporiatinn'linp�'dvciui•nti-� CITY PHASES 2021 TRR T`'Y S-ACT,OP COUNTY PHASES Yakima County: o VeM • •.; . _ ,v• ^ 4 ' • .., k •••,-;;, • • Vicinity of trampoline park A 1070 1 1050 1040 L OtiY 1030 - 1020 — 0P-44 1011te •7-) 1.45W Imumnpal wlid want) WDIgarod debt ( `53 (dean sand) SM lsar 4 writ, tines) SPSM Surveyed Ground Surface T%•16 I00013.91 TP•27 106u1•351 19.26 1011set <e'1 cmu tONut 11 MW106 tOtftet 471 0.11 GP (clean gn9e1 GM !a'.nel wool lvres( GM -GP (� GW (well graded grwep I ML(oh and sa.W) 8D (Large concrete oebre 4 8outlu tl T92.16 /Cniso �El 5 5 Other 141 St S8.12 S&i2 — dlutG9d1 1O1h11 TP416 TP3-16 (GM1et•16'j PM-102 t0t/se. •431 Ow 0.1d 09-2, 0499. SY, GP•40 lOttut •1') T96-t6 1P7-16 15'( (Offset -23'( 00 4,6Ij 10ff 88-10 [Met 7n 799A-16 (o::fe1.211 Gw P.I41 0.11. Legend Geologic Profile Transect A t10w1.04e14 Seek in {ego' ,'a l5 ).100 VurtL9 Sgsa wrote r l0 Sample 01J1WW1 61 WOW Of OM WIlee 1 6u:mg value. ledge* value. Provided w Bi11/19 W0,44.` stet wwd aid Krvo w;ny.al — — — Roprmmate t3our dwater 163 tact. stasortal high (Sewerage, 20141 Sale 4protanate Wow3Nwaitr tertSt at lama,'rx,...4 mn (Seutemoer 20161 TP9-16 10,1u, - TP-50 1944 1011ut .2)1 401611 )3't TP244-16 TP24.16 10t1sc1 :41 1011set .141 GW WTu' cick.\'° Sc... Yaanw C...4, GIS. SLR. ORS, Paramehss 2008. Bowe 1965 A' 1070 1060 — 1050 — 1040 1030 — 1020 Vicinity of railroad Project 1: Remove Municipal Solid Waste (MSW) for street construction • Full removal of MSW and wood waste is required for a stable road base. Low permeability wall will be constructed in ground to protect groundwater from migration of any up -gradient contamination. • City Council is scheduled to award the project bid for this task on October 20, 2020. Low Bid is $13,108,132. CITY CANNOT AWARD A BID WITHOUT FUNDING PLAN IN PLACE. • City will fund this contract project as follows: Department of Ecology Remedial Action Grant $8,700,000 Local funds (variety of sources) $2,208,132* LIFT Matching Funds $2,200,000 MSW Removal Project = $13.1 Million LIFT funds require a local, private or Federal match • The City received $8.7 million from Department of Ecology for this project. These are State funds that do not qualify for LIFT match. • Gap financing is $4.4 Million. The City does not need to issue a bond for this MSW Removal project, if we can secure $2.2 million in local or federal match for $2.2 Million in LIFT funds. • LIFT funds are reimbursed at $1 million per year of qualifying expenses. A $2 million commitment to this project will take 2 years for LIFT repayment. • Local Match could be from a variety of sources. COUNCIL SHOULD DISCUSS OPTIONS. Project 2: Evaluate Options for Agreed Order remediation of remainder of landfill O The Interim Action cleanup of the road corridor includes about 10 acres of landfill. DOE grant of $8.7M expires June 30, 2021. • Approximately 18 acres of MSW will be left in place as part of the Agreed Order process from Department of Ecology. • City will start the formal Clean-up Action Plan process including Remedial Investigation, Feasibility Study, and Action Plan in early 2021. The City's professional consultant is Landau Associates. • Department of Ecology will guide this process for consistency with the Agreed Order DE 15861. Analysis and review may take one year. The Yakama Nation wants to be involved with this process. Project 3: Yakima County 1-82 underpass and river bridge • The City of Yakima and Yakima County NEPA review of new road structures should be complete in the fall of 2021. This review includes all city streets as well as the connection to Terrace Heights which is planned to start construction in 2021— 2022. • The City of Yakima has no funding responsibility for this road. However, the Bravo Company Blvd project needs to be in place or under construction to provide the connectivity. • Both City and County street projects should be substantially complete prior to 2025 in order to meet WSDOT connectivity requirements. Projects 4 & 5: Construction of Bravo Co Blvd • Road and infrastructure construction of Bravo Company Boulevard is estimated to cost 10.35 million. This project could be divided into 2 $ construction phases. ® A NEPA review for the entire road corridor will be complete in fall of 2021. Road construction may occur after the NEPA is complete. o Funding for this project could include the following: Federal grant (pending) EDA CARES program $4.3 million* LIFT match $4.3 million Local funds/ private funding $1.9 million © General obligation bond could be issued for this phase and city share of landfill clean-up costs. This bond would be a 2022 issue. • Project #6: H Street reconstruction will occur in about 2024.Funding TBD. BID SUMMARY Bravo Company Blvd. MSW and Wood Debris Removal Project CITY PROJECT NO. 2529 ENGINEERS ESTIMATE HALME CONSTRUCTION INC. Spokane, WA SCARSELLA BROS. INC. Seattle, WA ROTSCHY INC. Vancouver, WA STRIDER CONSTRUCTION CO. Bellingham, WA • ITEM NO. Bid Security 5% BID BOND 5% BID BOND 5% BID BOND ITEM OTY UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT 1 MOBILIZATION 1 IS. 51,299,123.88 51.299,123.88 51,500,000.00 51,500,000.00 5575,000.00 5575.000.00 5600,48800 $600,488.00 $700,000.00 5700,000.00 2 CLEARING AND GRUBBING 2.8 ACRE 57,00000 519.600.00 520,000.00 S55.000.00 52,500.00 57,00000 51.50000 54,200.00 52,500.00 57,000.00 3 ARCHAEOLOGICAL AND HISTORICAL SALVAGE 1 EST, 57,500.00 57,500.00 32,500.00 57,500.00 57.500.00 57,500.00 57.500.00 57,500.00 $7.500.00 S7,500.00 4 REMOVAL OF STRUCTURES AND OBSTRUCTIONS 1 I . $40,000.00 S40000.00 5150.000.00 S150,000.00 S10.000.00 510,000.00 510,000.00 510.000.00 $2,000.00 52,00000 5 REMOVING ASPHALT CONC. PAVEMENT 2,630 S Y 515,00 539.450.00 S2,90 S7.627.00 53.50 59,205.00 54.50 S11,835.00 55.00 513,150.00 6 SAWCUT ASPHALT CONC. PAVEMENT 230 LF. 56.00 51.500,00 50.70 5175.00 55.00 51,250.00 5300 5750,00 52.50 5625.00 7 DECOMMISSION EXISTING MONITORING WELL 4 EACH 52,500.00 310.000.00 S10,000.00 540,000.00 51.500.00 56.000.00 5600.00 S2,400.00 54,000.00 516,000.00 6 WOOD DEBRIS EXCAVATION, HAUL ANO DISPOSAL 24,000 TN 572.75 51.746000.00 S8.88 5213.120.00 513.00 5312.000.00 $10.00 $240,000,00 521.00 5504,000.00 0 MSW EXCAVATION. HAUL AND DISPOSAL 16/.0)0 TN 559.87 59.998.290.00 546.98 57.645.660.00 552.25 58 25.750 00 557.00 59,519.000.00 553.00 58.851,000.00 10 EMBANKMENT COMPACTION 317,000 1N $1,50 $475,500,00 S0.29 563,400.00 50.90 S285.300,00 $0.85 5269.450.00 52.00 5634.000.00 11 COMMON BORROW INCL. HAUL 317.003 TN 510.50 53,328.500.00 54.83 S1,531,110.00 510.25 53.249.250.00 58.60 52,726.200.00 69.00 52,853.00000 I , 12 LOW PERMEABILITY BARRIER WALL 12,000 TN 515.00 5180,000.00 533.00 5396,000.00 $30.00 5360,000.00 525.00 5300.000,00 578.00 S936,000.00 13 CONTOUR GRADING 1 I 340,000.00 540000.00 S250.000.00 S250.000.00 57,030.00 57,000,00 512,000.00 S12.000.00 58.500.00 58.500,00 14 ESC LEAD 20 DAY S50.00 S1.000.00 525.00 5500.00 S200.00 $4.000.00 S125.00 S2.500.00 S175.00 53.500.00 k 15 STABILIZED CONSTRUCTION ENTRANCE 334 S.Y 520.00 56,680.00 530.00 510,020,00 518.00 S6,012,00 $23.00 $7.682.00 $15.00 55.010.00 16 TIRE WASH 1 EACH 57,000.00 57,000.00 5250,000.00 5250,000.00 $70,000.00 570.000.00 540.000.00 540,000.00 517,500.00 517,500.00 17 STREET CLEANING 20) HOUR S180.00 536,000.00 5250.00 S50,000.00 $175.00 S35,000.00 5195.00 539.000.00 5150.00 530.000.00 18 EROSION CONTROL AND WATER POLLUTION PREVENTION 1 L.S 530,000.00 S30.000.00 S75.000.00 575,000.00 $16,000.00 516.000.03 510,000.00 S10.000.00 59.000,00 59.000.00 19 HIGH VISIBILITY FENCE 4,e5 F 3500 524.325,00 5300 514.595.00 S2.00 59,730.00 5225 510.946.25 52.00 59,730.00 20 FORCE ACCOUNT POTHOLING UTILITIES 1 EST 57.500.00 $7.500.00 57.500.00 57,500,00 57,500.00 57,500.00 57.50000 57.500,00 57,500.00 57.500.00 i 21 FORCE ACCOUNT HEALTH AND SAFETY PLAN i EST 517.700.00 317,70 .00 317.700.00 517.700.00 S17,700.00 517,700.00 S17.703.00 $17,700.00 $17.700.00 S17,700.00 22 FORCE ACCOUNT HAZARDOUS MATERIALS MANAGEMENT 1 s S1 520,000.00 520.000.00 520.000.00 520,000.00 $20.000,00 S20,000.00 520,000.00 S20.000.00 S20.000.00 520.000.00 23 TRIMMING AND CLEANUP 1 L S 57.500.00 57,500.00 S150.000.00 S150.000.00 52,500.00 52.50000 55000.03 55,000.00 55.750.00 55.750.00 24 FORCE ACCOUNT 0EWATSRING 1 ES' 3100,000.00 5100, 0000 5100,000.00 5100.000,00 $100,000.00 5100,000.00 3100.000.00 5.100,000.00 5100,000.00 5100.000.0D 25 SPCC PLAN 1 L S 3S_00000 55.00300 $500.00 5500.00 51,500.00 51,500,00 52.5 0.00 $2.500.00 51.000,00 51.000.00 26 PLASTIC COVERING 18890 S.Y 53.15 559.503.50 52.50 547,225.00 53.85 572.726_50 53.25 561.392.50 $3.30 562,337,00 27 FORCE ACCOUNT ABANDON EXISTING BUILDING 1 ES1 512,500.00 S12.500.00 S12.500.00 512.500.00 512,500.00 512,500.00 512,500.00 512,500.00 $12,500.00 512.500.00 28 FORCE ACCOUNT DUST CONTROL PLAN 1 EST $5,000.00 55.00000 55.000.00 55,000.00 55,000.00 55,000.00 $5.000.00 $5,00000 S5.000.00 S5.00000 29 QUARRY SPALLS 4,100 IN 543.85 3179,785.00 528.00 5114.800.00 526.50 5108.65000 522.00 590,200.00 S22.00 590.200.00 30 DEWATERINGPLAN 1 LS. 55.000.00 5.5,000.00 5.150.000.03 S150_00000 55,000,00 55.000.00 55.00000 55.000.00 55.000.00 55,000.00 31 CONSTRUCTION GEOTEXTILE FOR SEPARATION 3,700 6.7. 51.85 56,845.00 56.00 522.20100 S1.50 55.550.00 51.25 54.625.00 51.30 54.81000 BID TOTAL 117,716,802.38 513,108,132.00 114.054,623.50 114,145,368.75 114,939,312.00 ENGINEERS REPORT ®C H { N E R f, AWARD MADE BY CITY MANAGER CITY' t! F YAKHMA Bravo Conii any Blvd. COMPE1l1M BIDS WERE OF'ENEOONSEI'I 291H.2620 AU. BIDS HAVE BEEN L REVIEWED BY THIS OFFICE. I RECOMMEND THE CONTRACT BE AWARDED TO: HALME CONSTRUCTION, INC. See 39, 2cazo fj-,%f�J.�4,o--),.--- MSW and Wood Debris Removal Project CITY PROJECT No. 2529 DATE: September 29, 2020 FILE: e aw Co. oral Msw e«1 s srv.oeo SHEET 1 of 2 I1Y s0b(}jf/�n �•�, DATE PROJECT E GINEER fii. r 3s0��ozlt� �� lrti.7 4 (k) .� DATE ACTING CtIY NONE � DA,T CITY MANAGER