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