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HomeMy WebLinkAbout09/30/2003 Adjourned Business Meeting 487 CITY OF YAKIMA, WASHINGTON ADJOURNED BUSINESS MEETING OF THE CITY COUNCIL SEPTEMBER 30, 2003 - 7:00 P.M. COUNCIL CHAMBERS - CITY HALL 1. Roll Call Present: Council: Mayor Mary Place, presiding, Council Members Clarence Barnett, Paul George, John Puccinelli, and Bernard Sims Staff: Assistant City Manager Rice, Assistant City Attorney McMurray, and City Clerk Roberts 2. Public hearing to consider recommendations of the Capital Facilities Committee re the rebuilding /paving of arterial streets and alleys presented as the following options: Option 1: Consideration of draft ordinance amending Municipal Code enacting increase in City public utility taxes by 3% for City water, sewer, Refuse Division and Nob Hill Water to finance Councilmatic Bonds for funding arterial street improvements /gravel streets • Also, consideration of draft ordinance amending Municipal Code and enacting a second quarter percent real- estate excise tax for arterial street maintenance and gravel streets Option 2: Consideration of draft ordinance amending Municipal Code enacting increase in City public utility taxes by 3% for city water, sewer, Refuse Division and Nob Hill Water to establish on -going resources to finance arterial street improvements without issuing bonds. Also, consideration of draft ordinance amending Municipal Code and enacting a second quarter percent real estate excise tax for arterial streets maintenance and gravel streets Option 3: Consideration of draft ordinance calling for a municipal election /ballot proposition to increase private utility taxes for telephone, power and gas by 1`)/0 to generate resources for arterial street improvements and gravel streets without issuing bonds. Also, consideration of draft ordinance amending Municipal Code and enacting a second quarter percent real- estate excise tax for arterial streets maintenance and gravel streets Option 4: Revise or amend any of the above options Option 5: Take no action (do nothing) If any of Options one through four is accepted after all the public hearings are held, then Council would consider a resolution directing formal amendments to the City's Capital Facilities Plan and Comprehensive Plan • 488 PUBLIC HEARING — SEPTEMBER 30, 2003 Council Member Sims suggested the hearing begin with a replay of Larry Mattson's summary from the last public hearing held September 16 The video was shown in which Mr. Mattson covered the following points: • The backlog of streets needing attention grows bigger every day. We must invest in our streets to protect our investment in them over the long term. • There are state and federal grants and loans which can leverage local dollars. Why refuse $4 for every $1 we contribute? • Leveraging those state and federal dollars requires a dedicated local revenue stream. Yakima needs .a dedicated revenue stream to enable us to compete for low- interest loans and state and federal grants that require a 20 % -50% local matching contribution. • The legislature created the 1 and 2 quarter REET (real estate excise tax) expressly for the purpose of funding capital improvements. • Now is the time to address our street needs, not AFTER they are riddled with potholes, and to do so in a way that demonstrates fiscal responsibility and greater accountability. He also spoke about accountability to the public, including annual road reports to the community, quarterly reports to Council and community meetings to obtain feedback • on how we are doing. Following the video, Mr. Mattson, emphasized that streets, or any utility, are an investment handed to us from previous generations and we have a responsibility to maintain and improve them. He again brought up the issue of accountability. He thinks it is appropriate to have a sunset clause with this issue and recommends five years. That would be adequate time to demonstrate improvements, allow for capital to • be accumulated to get projects constructed, and to report on what is being done with the money. Every state and local elected official should be on notice that we need to show our work. He stated that Tim Eyman and his initiatives will keep coming back and will keep winning until we can show our work. When asked, he responded that he is partial to Option 2 and would propose moving $140,000 from the gravel streets account to the arterial account allowing for more dollars for the arterial program. Council Member Barnett asked if Mr. Mattson thought everything should be subject to Title 12 standards. Mr. Mattson responded that, yes, we should hold our streets to the same standards we hold private developers. Council Member Barnett also asked how he felt about the 50/50 LID. Mr. Mattson said he feels it should be 50/50 of property owners, not residents. Council Member Puccinelli explained his view about a previous tax increase for the Parks Department and how it was his opinion that, although that tax money went to Parks, the City then took other money "out the back door" thereby not solving the problem. He questioned whether this situation may occur in this instance also. Will the tax replace the current funding source rather than enhance it, and thus, result in a shortage of funds to improve and maintain the streets? He asked where the City's gas tax money goes. He criticized the City for wanting to raise taxes rather than trying to live within the budget. He claimed that "...other states are able to get things done with less taxes ". He also questioned whether Title 12 should be in place. 2 489 PUBLIC HEARING — SEPTEMBER 30, 2003 • Chris Waarvick , Director of Public Works, reviewed the gas tax information and emphasized that gas tax dollars cannot be, and are not, used for anything but roads. Efforts are taken to insure the street information is available to the public; e.g. public attendance at Capital Facilities meetings, reports provided to Council on all activities, and staff has even invited themselves to people's homes to talk about the transportation plan. Accountability efforts are in place and are being performed. The discussion continued with Council Member Puccinelli commenting on how the City handles their funds. Cindy Epperson, Financial Services Manager, clarified some misinformation that was being stated. • • Mayor Place opened the public hearing Bill Taylor, 3607 Carol Avenue, said he was under the impression that citizens are facing a likelihood of six different possible tax effects in the near future; such as refuse, irrigation, wastewater, stormwater, etc. He feels raising the suggested taxes for roads will discourage people from coming to Yakima. He had the following suggestions: - Decentralizing the City's purchasing. -Make public employees an owner, give them an incentive program. - Recognize an employee for a job well done. - Compete out contracts to perform city services, allow private companies to compete against public employees for city services. -Trim and eliminate waste. Focus on the outcomes. He is strongly against raising taxes and also is against strict adherence to Title 12 Standards. He said the citizens should have a right to vote on the proposal for tax increases, he doesn't like any of the options at this time and thinks a decision should be delayed until after the election. John Gillett, 809 South 4th Avenue, said that, as a retired person, he cannot afford the taxes. He agrees something needs to be done, that it will have to be done through Council, but does not want "taxes for the public to pay for it ". Roy Robeck, 3203 Summitview Avenue, said he doesn't think the Council is hearing the public when they say "No New Taxes ". He suggested working within the existing budget. He then spoke about the current taxes he is paying and the affects these increases have on the elderly on fixed incomes and the poor. He advised that he operates a laundry service that uses a lot of water and if he has to pass that extra cost on to the hospitals, the elderly will get hit twice. Council Member Puccinelli suggested he might move his business outside the city to avoid having to pay all the current and upcoming taxes. In response to Council Member George's question about the second quarter real estate excise tax Mr. Robeck said there is already an excise tax and he hears the City saying it isn't enough. It was his opinion that that was the problem, it's never enough. Jim Evans, 4405 Summitview Avenue, said he sees new trucks driven by city employees, graders that are brand new, equipment that is new, but our streets are old. He said we need to make better use of the money we have. 3 490 PUBLIC HEARING — SEPTEMBER 30, 2003 Bill Hambelton, 615 South 32 Avenue, said water, sewer, refuse, irrigation, all public utilities, should support themselves and not be used for funding street and road maintenance. He does not support any of the options in the report. He said he doesn't think the public understands how the current revenue is being effectively spent. He suggested trying to live within our budget for a few years. Joe Walsh, Director of Government Affairs for Central Washington Home Builder's Association, said that at the previous two public hearings he began with their position of supporting taxes that are directly associated with the service provided. Utility taxes are not directly associated with maintaining streets. He submitted suggestions for modifying Title 12 claiming this is a request by CWHBA to incorporate a means of flexibility into the standards. For example, the developer being given bonus points for doing more than the minimum standard required. If the developer agreed to provide sidewalks on both sides of the street, he would be credited with bonus points that would be used to reduce the minimum lot size in that development. Another example would be allowing the developer to reduce the residential street size by providing a common area or a park adjacent to the development. He claimed it is the carrot instead of a stick approach. He said they also would like to see the standard include a means for appealing the City Engineer's decisions. They feel the City Engineer should be given more latitude for judgment calls as long as there is an appeals process in place. He encouraged Council to make Title 12 a guiding document rather than the regulatory instrument it is today. He summarized by suggesting that the Council make the final modifications to Title 12 prior to determining any funding mechanisms for street maintenance because that will hugely impact the dollars necessary to make the maintenance projects work. He also encouraged Council with regard to the 50/50 public /private LID proposed by CFC. He said that if covering the gravel streets is a mandate from the Clean Air Authority, then Council should take the action themselves to put the LID in place within the neighborhoods without pitting the tenants against the landowners. Just make your case and do it. He urged the existing City Council to be the group making the decision but if that is not going to be the case then the hearing should be continued. Javier Gutierrez, 313 South 3 Street, said he was in favor of Option 5 and is against paying more taxes. Clarence Gipson, 1315 South 40 Avenue, refuted previous claims that increasing the quarter percent real estate excise tax would cause people to move to Union Gap. He gave an example of the impact on a $100,000 house and compared it to the real estate fee (6 % -7 %). He said to suggest that increase would keep them from selling, is not realistic. He compared the cost to the benefit of the revenue it brings into the city allowing us to have better streets, better health, and the opportunity for people to come in and want to live on that street. He spoke about the health issues of dusty streets for residents who suffer from asthma or other respiratory diseases, the risks of children being hurt, and the potential accidents due to gravel streets. He is not in favor of strict adherence to Title 12 but suggested, at the very least, to have curbs on the streets and if there is a sidewalk on one side of the street it be wide enough for a family of three to walk side by side. 4 491 PUBLIC HEARING — SEPTEMBER 30, 2003 He said he, too, hates paying all the taxes, but quoted from a number of sources that show the State of Washington, tax -wise, was a good place to live: • The 2002 Small Business Survival ranked Washington as #8, over 42 other states, in the measurement of fundamental business taxes. • The Progressive Policy Institute issued in 2002, in the state economy index Washington ranked as #2 based on business incentives. • Bloomberg Personal Finance magazines ranked all 50 states based on taxes (sales, real estate) for four - member families and Washington ranked #5 in wealth friendliness. He again pointed out that he didn't think Title 12 should be strictly adhered to but if a community wants the 50/50 LID support, it should be required. He would support deviation where it is important to get pavement down to save the dust hazard. Larry Mattson, 2810 Shelton Avenue, explained how the Department of Transportation is demonstrating their fiscal accountability. They have a website that posts status on "nickel" projects (projects funded by the additional five cent gas tax), they have quarterly reports on cost overruns, savings, delays, etc. Secretary McDonald and the legislature are very serious about accountability. Jim Kurbitz, Washington Association of Realtors, re- emphasized a point he had made in the previous public hearings about the negative impact the real estate excise tax will have on first -time homebuyers. He said it is a very real possibility that this could affect the homebuyer's ability to purchase that first home and that would have a ripple effect. He also commented that he would be in favor of the Council not voting on this issue until there is a full council seated. That raised the discussion on whether new Council members could vote on the issue because they haven't been involved in the public hearings. Mr. Kurbitz also pointed out that another document he had read regarding an association of some Washington businesses that had ranked Washington somewhere around 30 in being business friendly. Mike Elliott, 110 Laredo Lane (in the County), and also speaking for his mother at 1907 South 9 Avenue, said they oppose any new taxes because his mother is on a fixed income. He said he is also a past president of CWHBA and they don't support any new taxes. He also wanted to counter comments about a home sale being $100,000 where the additional quarter percent tax would be $250. His experience is that homes now are more in the $250,000 range and the tax impact would then be (he said $770 but it calculates out to $625). He would rather see the City try to work within their budget and agrees with Mr. Evans about not always needing new equipment. • Mayor Place closed the public hearing SIMS MOVED AND PUCCINELLI SECONDED TO HAVE THE LEGISLATION COME BEFORE THE COUNCIL AT THE OCTOBER 21, 2003 COUNCIL MEETING. It was the consensus of Council to change the wording on Option 5 to read Take no action on these recommendations. The motion carried by 4 -1 voice vote; Place voting nay. 5 492 PUBLIC HEARING — SEPTEMBER 30, 2003 3. Adjournment SIMS MOVED AND GEORGE SECONDED TO ADJOURN. The motion carried by unanimous voice vote. The meeting adjourned at 8:35 p.m. READ AND CERTIFIED ACCURATE BY CC. -340/9 CO IL MEMBER / DATE / / ' COU CIL MEMBr'• ' NA E ATTEST: K O - Lfz- ti ltr u� CITY CLERK MARY PL MAYOR Minutes prepared by Linda Watkins. An audio and video tape this meeting are available in the City Clerk's Office 6