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Home My WebLink About09/22/2011 Study Session 80 YAKIMA CITY COUNCIL ADJOURNED MEETING — STUDY SESSION SEPTEMBER 22, 2011 — 9:30 — 11:00 A.M. COUNCIL CHAMBERS — YAKIMA CITY HALL 1. RoII CaII Present: Council: Mayor Micah Cawley, presiding, Assistant Mayor Kathy Coffey (arrived at 10:05 a.m.), Council Members Dave Edler, Maureen Adkison, Rick Ensey, Dave Ettl and Bill Lover Staff: City Manager Cooper and City Clerk Kloster 2. Street Preservation Program Chris Waarvick, Director of Public Works briefed council on the materials provided. The options are: • Traditional bond issue, 20 year, LL, $30 million, 5.22 %, varied draw in millions /year • Pay as you go —$30 million, 6% In lieu tax ($2 million), $20 /yr Transportation Benefit District (car tab fee) $1.0 million) $3 million /year • Pay as you go— alternative 1, $10 million, 3% In lieu tax or $20 year car tab (not both) $1 million /year • Pay as you go— alternative 2, $10 million contribution from Transit, Stormwater and POG model etc. totaling $1 million /year • Do nothing more Council discussed the alternatives. City Manager Cooper added he does not support a bond issue for street repair. Street maintenance is the majority of work proposed and the focus should be on annual funding based on a level of service. If funding is not spent on annual street maintenance, a bond issue would be needed as streets would deteriorate beyond repair. Council Member Edler would like to identify how much is needed annually and identify a funding source. City Manager Cooper estimated spending $1 �2 — 1.5 million annually, adjusted for inflation, to maintain streets at their current level. Mayor Cawley pointed out that if no funding is available, we will need to infuse the budget with new revenue. Council Member Ensey reported he is not in favor of a transportation district or car tabs as the community has indicated this isn't a solution. He mentioned the County's straw poll on car tabs had 76% voting against it. Council Member Edler questioned where the money would come from. The Street Division completed the 5` Avenue work with less money, and that's the service level we have accepted. Council Member Ensey suggested the City should not be in the bus business. Council Member Edler noted those are federal funds, not general funds. • 81 September 22, 2011 Mayor Cawley believes there are not many places where the City can come up with $1 million in savings. The City either quits doing something entirely or brings in new revenue; however, not maintaining our streets is unacceptable. Council Member Edler mentioned his previous idea of obtaining a commitment from all the Tabor groups to take a 4% decrease in pay. He added, the previous City Manager stated if deep cuts were to be made under the current budget model, it would come from the Parks division and Council Member Edler is interested in other ideas. City Manager Cooper discussed the Council defining a level of service for the community on what is acceptable. It is staff's job to come back with options to achieve that level of service. Council Member Ettl understands the Council can increase the car tab fee without a vote of the people, but since he represents the voters, he would like to know what the community's level of service is and what they will support. Mayor Cawley indicated if the Council lets streets deteriorate, it will cost $5 per square foot to repair instead of $2. Council Member Edler referred to the street condition survey, which shows our streets are in good to failed condition. He understands the City did not chip seal this year so those roads that are in "good" condition now will be sliding into the "fair" category. City Manager Cooper believes a standard of very good and above is financially impossible. There will be a certain percentage of streets every year at a scale of poor, failed, etc. Council Member Ettl asked Mr. Cooper what he believes is a reasonable standard based on his experience. Mr. Cooper replied that he isn't making a recommendation but he thinks if 70% are fair or better, that would be reasonable. He added that every year the percentage of below standard will increase. Council Member Adkison doesn't believe they can accept a failed road. Council Member Lover agrees the POG model should be taken to the next step by dealing with levels of service. Mayor Cawley observed they can set levels of service but will need the money to get there. Council Member Edler noted his focal point is that close to 30 percent of our roads are failing. If Council wants only 70 percent to be fair or better, we are already there. With regard to the County's car tab survey, there was no information on where the funding would be spent. Council Member Ensey noted that even if there was a coherent plan, it may still fail and he doesn't have the political will to ask for more money. Council Member Lover asked what $1 million dollars out of the budget would look like. Mr. Cooper indicated it would be a decrease in services. Council Member Adkison indicated that would be only a one -time fix. Mayor Cawley thinks we are below the level of service in many areas but there is no political will to wholesale something. Council Member Edler pointed out if the Council moved in the car tab direction, the next step would be a public hearing. Typically 30 or 40 people may show up in a community of over 80,000. Council Member Adkison asked how long it will take for the roads in very poor condition to fall into failed condition. Streets and Traffic Manager Joe Rosenlund indicated it would depend on the road, but the majority of streets are in good condition. However, on the existing funding path, the majority will be in very poor condition within 2 82 September 22, 2011 10 years. Council Member Edler noted that the County has a road tax, but we do not have a designated street maintenance fund and suggested making one. He doesn't believe this is creating bigger government. That fund would pay for chip sealing, and if it isn't in the current budget, a new funding source should be created. EDLER MOVED AND COFFEY SECONDED TO SETA DATE FOR A PUBLIC HEARING ON CAR TABS. Council Member Adkison asked to be reminded of what the in -lieu of tax is. Mr. Waarvick stated it is the tax on utilities and we are currently at 14 percent for water /sewer and 9 percent for refuse, which is not much higher than the average. Council Member Lover is against car tabs. Council Member Ensey stated the most useful idea from today's discussion is setting levels of service. Mr. Cooper doesn't presume to direct council, but thinks service levels are needed as a place to start. Once the service level is set, staff can determine what is needed to reach that goal. In the past, he has set aside revenue that must be used to maintain a certain level of service. If Council is prepared to drop other services to achieve that level for street maintenance, that is Council's decision. • Council Member Edler asked what the budget shortfall forecast currently is. Mr. Cooper indicated it is a moving target, and he is hoping to stop that movement soon, but it may be $1 -1.3 million. Council Member Ettl stated if public safety is the top priority, where do streets fall in relation to public safety. Council Member Edler stated the next big discussion is what the role of government is. He believes it is taking care of infrastructure and he feels we are not doing that. Assistant Mayor Coffey felt the in -lieu of tax would go towards police. However, this needs to be looked at as a whole. Police, crime and justice are a higher priority. She asked what the $1.2 million for streets would cover. Mr. Cooper indicated it would be maintaining the streets at the present standard. Assistant Mayor Coffey stated that requires a sustainable funding source and challenged Council Member Lover to find it. Mr. Lover responded it could come from stormwater assessments since streets are a stormwater conveyance, and there are cities that tax or charge assessments on streets. The motion failed 4 -3; Mayor Cawley and Council Members Ensey, Lover and Edler voting no. Mayor Cawley asked about a plan for council to discuss setting city -wide levels of service. Mr. Cooper talked about scheduling a budget retreat to discuss setting levels of service in mid - October. CAWLEY MOVED AND ENSEY SECONDED TO SCHEDULE A BUDGET RETREAT IN MID- OCTOBER. Motion carried by unanimous roll call vote. 3. Audience Comments None 3 83 September 22, 2011 4. Adjournment EDLER MOVED AND ENSEY SECONDED TO ADJOURN TO OCTOBER 4, 2011 AT 6:00 P.M. FOR CITY COUNCIL BUSINESS MEETING IN CITY HALL COUNCIL CHAMBERS. The motion carried by unanimous voice vote. The meeting adjourned at 11:04 A.M. R EAD AND CERTIFIED ACCURATE BY `% 1 .c:3—c 1— 11 "OUNCIL MEMBER DATE (A4----. OUNCIL MEMBER DATE ATTEST: VAK�iy , '1 ' • • ( 4 4 A r I ' * % " MICAH CAWLEY MAYOR • CITY CLER , -**� ► ; 'i' ' ‘ 7 ` 91 "fINGi 0 ? s. '- Minutes prepared by Sonya Clear Tee. A CD and DVD of this meeting are available in the City Clerk's Office. • 4