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HomeMy WebLinkAbout11/30/1993 Adjourned Meeting 4 7 CITY OF. r WASHINGTON NOVEMBER 30, 1993 ADJOURNED MEETING - BUDGET REVIEW The City Council met in session on this date at 9:15 A. M. in the Council Chambers at Yakima City Hall, Yakima, Washington. Council members present were Mayor Pat Berndt presiding, Clarence Barnett, Henry Beauchamp, Bill Brado, and Lynn Buchanan (present after 9:50 A. M.), Skip Semon (present after 9:35 A. M.), and Bernard Sims (present after 9:50 A. M.). City Manager Zais (present after 10:10 A: M.), Director of Finance & Budget Hanson, Accounting and Treasury Manager Wheeler, Accountant Sanders, and Department Assistant Moen were also present. PUBLIC WORKS DEPARTMENT Mayor Berndt opened the meeting and asked the Public Works Director Jerry Copeland to introduce his staff; Refuse Division Manager Nancy Gaudette, Transit Planner John Haddix, Traffic Engineering and Street Manager Dave Hussell, Street Division Supervisor Joe Jackson, Transit Division Manager Bill Schultz, Equipment Rental Manager Don Toney, and Traffic Engineering Supervisor Shelley Willson. Transit Council Member Barnett stated on Page 354 the ridership between 1993 and 1994 projects are significantly increased from 1992 to 1993. Is that because 1994 includes trolley cars? Mr. Schultz explained the project is shown under performance statistics and reviewed his calculation for that figure. Council Member Beauchamp asked how the fare box projections concur with other cities? Mr. Schultz stated three systems in Washington do not charge fares. Council Member Beauchamp asked how long has it been since we had a fare increase? Mr. Schultz stated that the last one was in 1979. Council Member Beauchamp stated that may be something to think about. Mr. Schultz stated when looking at the cost of the fare boxes, the maintenance of the fare box, the cost of I/ accounting for the funds, and handling the funds, you question whether or not you are making any money based on what you charge. Council Member Beauchamp asked how many people are assigned to the responsibility of fare boxes? Mr. Schultz stated staff has done a detailed cost accounting, however, the Finance Department keeps track of the money. Fare boxes run $5,000 for replacement cost. Mr. Hanson stated he thinks the City tried to take a reasonable, rational internal control and review of fare boxes. Staff found the amount of control was a problem; no one wanted to 48 do it. He stated he thinks if the City is looking at a new system it might be a consideration and if you add the motor vehicle excise tax match to the sales tax he doesn't think there would be a question. Mr. Schultz commented the PTBA has indicated a desire to at least consider a match. Mr. Hanson stated the best control would be to take it out of the buses, count it and deposit it. I/ Council Member Barnett stated staff gave us the projected cost of upgrading the trolleys and he asked. if the plan is to bring them in to have one system? His concern is that the figures do not include the replacements. He stated it appears that should be a definite factor to those cars. Mr. Schultz stated we don't factor in the cost of fixed route buses in the budget, we generally do that in the capital reserve. Council Member Beauchamp asked if the revenues and transit advertising are identified? Mr. Schultz stated it is a printout summary and is added with other revenues. It is roughly about $21,000 a year. Council Member Beauchamp asked if it is about the same as it has been. Mr. Copeland stated that is what we projected at the offset, it was $20,000 and we went to contracting. Mr. Schultz stated it has increased annually and appears to be leveling off at about $21,000. Council Member Barnett pointed out in the Policy Issues that a Transit Dispatcher is requested. He stated this issue came up before and he thought it was approved at that time. He asked how Dial -A -Ride is working. Mr. Schultz stated this work is done through a contractor and explained some of the special needs of individuals. Council Member Barnett stated his concern is with the growing number of non - profit organizations. Mayor Berndt stated when looking at this budget she thinks the way the labor negotiations are going the City may have to lay some people off. Mr. Schultz stated it is the intention of staff to develop a cost- reduction plan. Mr. Copeland stated staff reviewed which routes to cut and the hours they operate. He asked the Council members to let staff review this to see how and where to make reductions. Mr. Hanson told the Council members that an additional cost is expected in next years budget due to adjustments for the appropriations for this year. Mr. Schultz commented staff is talking about transit operators, FTE and now about Dial -A -Ride. Council Member Beauchamp asked, once the PTBA 1, becomes a reality, what percent or how many dollars will the City of Yakima lose in terms of staff and supportive revenues to all the divisions. Mr. Schultz stated a half million annually would be lost, comprised from Public Works Administration, Public Works facilities, City services, and the Street Division subsidy. Mr. Schultz stated a transition improvement by PTBA is done with a contractual relationship 49 between the City of Yakima and,PTBA. That is subject to change when the Board gets involed; some point in time it will shift over to the PTBA. Council Member Brado is concerned with the $300,000 Grant from the State to pave a parking lot on Nob Hill Boulevard and feels it is a waste of money. He suggested the City sell the property on Nob Hill and buy property by the railroad tracks for a park and ride and a trolley stop to pick up employees. He asked if that is possible? Mr. Schultz explained the State liked this site for car pools to form as well as for Transit's use for people to park their cars to go downtown. Council Member Brado questioned whether the Nob Hill Plaza could be used to park cars one or two days for special events. He stated he thinks we are wasting money and should consider the zoning aspect and develop something else there. Mr. Copeland stated staff understood the City Council was not interested in selling and thought this would be a way of utilizing that property. Council Member Beauchamp asked what would happen to fare rates if we charged 25 cents for trolley rates. Mr. Schultz stated he has no idea, however, the City would need fare boxes. Council Member Beauchamp asked how much a fare box costs? Mr. Schultz explained an electronic fare box is less expensive, however, slows down the operation schedule. It could impact the ridership; visitors are relieved not to have to have the correct change. Mayor Berndt stated in bad weather people use the trolley more. She asked to just leave all the rates the way theare now:'and review this in a year or so. Council Member Semon stated if you look at the current budget, we are now returning less than ten percent in fare box revenues. He questioned if there should be any charge for the transit services? We need to look at the whole system. Council Member Buchanan stated someone attending a hearing at the Convention Center made a pitch for the City of Yakima to have a vehicle available to run between various motels. He stated he advised the speaker that service is provided free of charge by the downtown trolleys. Mr. Schultz stated staff will come back to the City Council regarding the Dial -A -Ride issue. Staff needs an appropriation to meet this year's projected expenditures and an increase for 1994. Under the Americans Disabilities Act la the City is required to increase the Dial -A -Ride to meet demand for services. It created a problem of control and it is increasing the costs. We have been budgeting more each year and that has been insufficient. It would require staff to review these regulations. Staff's current proposal for $266,000 needs to be raised to $375,000. Staff has no way to project realistically what the ridership will be. Mr. Schultz commented all handicapped persons cannot access the buses, so some services have to be provided for them. 50 Refuse Council Member Barnett stated staff informed him that the automated collection program was indicated as a budget item and that should be unbudgeted. He stated the City should go to the pilot program first. Mrs. Gaudette stated she feels the pilot program is very important. She stated Yakima County is proposing an increase of their landfill rates and the City needs to review that: Mrs. Gaudette spoke on the biodegradable products and possible lower costs. She stated I/ staff has received input from the public expressing concern about garbage being put out in plastic bags. The City Ordinance indicates garbage cans are required and staff has been putting information in with the utility billings. The crews are concerned because of the lifting and not knowing what the bags contain. Staff is proposing to no longer pick up garbage not in cans. Mrs. Gaudette reviewed the types of cans and regulations for the Council members. Mrs. Gaudette stated she went out with one of the crews and was surprised at the condition of the cans. ENGINEERING & UTILITIES DEPARTMENT The Engineering & Utilities Department staff present were Engineering & Utilities Director Denny Covell, City Engineer Fred French, Bruce Bates, Assistant Wastewater Superintendent, Dueane Calvin, Water & Irrigation Engineer, Doug Mayo Supervisor Sanitation Engineer, Chris Waarvick Wastewater Treatment Superintendent, and Ty Wick Water Division Superintendent. Engineering Mayor Berndt suggested staff wait to discuss adding a position until after negotiations. Mr. Covell stated staff is looking at a possible solution; to contract services to document payments. He stated that is an option staff is exploring for project compliances to review payrolls of builders. Mayor Berndt asked why a middle -man is needed? Mr. Covell stated it is needed to comply with requirements of State laws. Mr. Hanson referred to Page 447 of the Budget in which the revenue coming in from the bond issue must be modified. Mayor Berndt asked Mr. Covell to comment on what his Department receives from the capital bond issues. Mr. Covell stated the City receives about $430,000 a year from Gas Tax I/ money for capital services. This money is used on arterial streets, however does not build intersections. Half of this money is for stress road projects. Mr. Covell stated due to an exemption for gasohol, a problem is created in declining gas tax revenues. This money does not go for I -82, that money is locked in. Mr. Covell commented on State funding j a 51 available and how the City matches.hat funding. The City plans to submit two applications; one for the Gateway Project and one for the Fair Avenue Project. Mr. French stated the 392 Fund on Page 451 of the Budget was used to manage money for the First Avenue Project and it has been completed. However, staff does not have all of the expenses completed yet. City Manager Zais stated that has been our primary I/ capital fund for the bond tax. Wastewater Council Member Barnett expressed concern that the sewer operation fund is dropping so dramatically. Mr. Waarvick stated staff is continuing implementation of the Biosolids Management Plan. However, in 1994 staff was to implement a second phase by bringing on two entry level positions. Then the operators would be able to do more of the line work. The second issue is for a Pretreatment Associate Position. Staff would need this assistance for the City's Pretreatment Program to meet our mandated programs. The Pretreatment Program has been delegated to the City by Federal and State enforcement orders. Mr. Waarvick stated in order to operate the sprayfield fully and meet WAC Regulations and be sure workorders are met staff is considering an additional nine month position. Mr. Waarvick stated staff sees about a millon dollar increase in expenses in 1993 and 1994. These are debt service costs, general operating and maintenance costs, and staffing. He explained debt services are used to pay back a cash balance loan so we will have the significant cash to work from. Mr:a'•Waarvick explained the cost of service study being done by Doug Mayo. Staff will try to have that information by early 1994 and the City Manager will schedule it with the City Council. Council Member Barnett asked what is the anticipated rate increase? Mr. Waarvick stated it will probably be ten percent over the next two years. Council. Member Beauchamp asked why the industry generating this problem can't be identified and be required to pay for improper discharge of waste. Staff offered to bring information back to the Council regarding the benefits for those who are paying for this service. Council Member Brado stated he would rather see the affected industries held liable for costs. Water Council Member Barnett asked when the City increases the water rates where is that reserve reflected in staff's summary on Page 122 in the 1994 Resources and Expenditures? City Manager Zais stated that is under Fund 474 on Page 122 in the Operation reserve. It went from $1,088 at the beginning of the year to $904 for an ending balance. Mr. Wick stated next year we have some capital expenses we 52 did not anticipate. Mr. Wick stated they are going to review this question of financing in the Comprehensive Water Plan Update, which may include a bond issue. Council Member Beauchamp asked, to improve efficiency, why can't we have someone from the Water Division know where to locate utilities so three individual divisions do not show up. Mr. Wick explained each division fits the duties in as they can. Mr. Hanson asked what is the liability? How many I/ hours do they have to respond? Council Member Beauchamp stated if the City if going to hire one person that person must learn where the markings are. Mr. Wick stated if we cross train it impacts the Water Division because that person would be working for the other departments. Council Member Beauchamp stated he believes it could be done. Mayor Berndt questioned the addition of a Water Quality Technician Position for monitoring. Mr. Wick stated it is not just the monitoring of water. Federal and State mandates want quality for vent contamination. Dan Arnett, Representative from the Yakima Chamber of Commerce, stated these tests must now be performed. He stated businesses in the area will support the municipal government. Council Member Beauchamp asked if staff needs these extra two temporary workers? Mr. Wick stated it would reduce the increased backlog of work. Council Member Beauchamp asked how much time will these workers work? Mr. Hanson explained temporary workers may work for five months. Mayor Berndt asked about future rate adjustments. Mr. Wick stated it is included in the Water Rate Study. He will be sure that the City Council members get that proposal. Irrigation Council Member Buchanan asked how the irrigation program is affected when an area is annexed. Mr. Wick stated that is domestic irrigation. Staff is instituting a Public Relations Program on what the process is and what the costs are to be. Council Member Buchanan stated these people were told the City was giving lower rates on irrigation and now they are not and they will pay additional costs and they are not happy. Mayor Berndt asked how are we coming on the backflow? Are we running as far behind? Mr. Wick stated absolutely. We did the sewer district plan, the nursing homes, and the hospitals, the high -risk first. Staff is moving down the list. City Manager Zais asked in the Fall of 1994, staff I/ will get a determination from the court on the status of our water ruling, is that correct? Mr. Wick stated the judgment will go through and it may be 1995 before anything happens. Mr. Wick stated the Comprehensive Water Plan was only approved based on a decision of 1989 and by the end of 1994 _ 53 NOVIIVIBhh , i ' 1993 we have to have comprehen s,ive pl;ans, place. They will not approve them unless a ''decision '' has been made on the irrigation. The problem is the leakage there. City Manager Zais stated we are being driven now by another issue, the Health District. We may not have that choice here based on what Ty Wick is saying. Council Member Buchanan stated he feels some of the money spent on leakage in irrigation lines should be spent on pipelines. He feels that is a foolish waste of money to use for one block of residential area. Mayor Berndt, adjourned the budget meeting at 11:45 A. M., to then resume the meeting at 2:00 P. M. for a City Council Business Meeting. READ AND CERTIFIED ACCURATE BY � ' /( a► Sz COUNCI vEMBER DATE i `3 -,e'er COUNCIL MI14 E ATTEST: 1 /.°4L.A...e..-,".....- ,,.' R.c.„--- Qat 1/4„,44,,,,...d.t CITY CLERK MAYOR MINUTES PREPARED BY DEPARTMENT ASSISTANT MOEN" An audio and video tape of this meeting are available in the City Cl,erk's Office i , j . i I I i