HomeMy WebLinkAbout09/30/2005 Adjourned Meeting 269 -
CITY OF YAKIMA, WASHINGTON
ADJOURNED MEETING OF THE CITY COUNCIL
SEPTEMBER 30, 2005 — 7:30 A.M. - 9:00 A.M.
YAKIMA CITY HALL — COUNCIL CHAMBERS
1. Roll Call
Present:
Council: Mayor Paul George, presiding, Council Members Ron Bonlender,
Neil McClure, Mary Place, Bernard Sims, and Susan Whitman
Staff: City Manager Zais, Rita Anson, Director of Finance and Budget, and
Acting City Clerk Moore
BST: Ron Anderson, Eileen Birge, Troy Emmons, Bob Holtfreter, Anne
Knapp, and Leni Skarin
Not Present: Melody Westmoreland
2. Study Session to receive recommendations from the Budget Strategy Team
Robert Holtfreter, Co -Chair of the Budget Strategy Team, identified himself as a
Professor of Accounting at Central Washington University. He had the team
introduce themselves and also mentioned and thanked staff members who had
assisted them with the study.
Eileen Birge presented first. She clarified their mission was to help address a
known upcoming fiscal crisis and provide citizen input regarding the tier cuts in the
original Contingency Budget Reduction Plan (CBRP). She described the process
the team used, interviewing all department heads and looking at each budget from
a bottom -up perspective. She noted that the team spent an estimated 5,000 hours
of work over the past 15 months. They found the City very well managed with
excellent financial data. They were mandated to try and find cuts in the General
Fund. They discovered there weren't any easy ones as they were made a long
time ago. She also comment that, with a few exceptions, they wouldn't
recommend any of the cuts in their version were the City not facing financial
difficulties. Summarizing their findings, she noted they rejected $515,000 of the
cuts outlined in the initial contingency plan. They identified over $1.1 million worth
of cuts not in the plan and went beyond the initial mandate to identify more than $2
million of potential additional revenue. With the combination of reductions and
added revenues, they identified more than a $2.6 million positive net difference.
The Committee identified the "Big Five" expenditures as Police, Fire, Parks, and
Street Departments, and the Library. They reviewed these departments'
performance levels and asked if it was possible to make any cuts, or would that
lead to inappropriate performance that we couldn't live with.
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• Performance ratings
The Police Department rated medium, with an admirable clearance rate of 81 % in
crimes against people, but a dismal 21% clearance rate in crimes against property.
Yakima has a higher than average crime rate, violent and property, which is a
deterrent to business, quality of life, and economic development. Their staffing
rate is below the national levels of 2.2 officers per 1,000 residents and the state
level of 1.6 per thousand. As a result they do not feel it possible to make more
cuts.
The Fire Department's rating is in the best 7% of cities in the country. The team
wondered if we had to be in that high of a percent.
The Parks Department was rated medium to low. Yakima has approximately 4.7
acres of parks per thousand residents which is much lower than the national
average of approximately 19.1 acres of parks per thousand residents. Other cities
spend $80 per resident on park services compared to Yakima's $47 per resident.
The Street Department has a $3 million backlog in unfunded street maintenance.
This is an area where if you don't do it now it will cost you much more later.
The City was spending about $17 per resident per year for library services. In
2001, 13 of the largest U.S. cities spent an average of $32 per resident.
• Recommendations for The Big Five
Police is the largest department in the General Fund at $16.2 million. Although the
team agreed with the initial recommendations in the contingency plan, they
rejected decreasing fuel costs (unlikely in our current environment) and the
elimination of the parking position. They felt it should be retained and
recommended increasing parking fines. They did add the elimination of the
community service position, if necessary, at the tier 2 level.
City Manager Zais intervened to explain that, in the event of any reductions, it
would not be to dismiss or lay off any existing personnel, but reductions would be
made through attrition. The Budget Strategy Team concurs with that philosophy.
Council Member McClure wanted to clarify that to get the million dollar savings
spoken about would require literally wiping out services; closing fire stations, fewer
officers on the streets, and cutting the parks budget. We're hoping not to do these
things.
Leni Skarin presented for Melody Westmoreland who was unable to attend today.
The Fire Department currently has 82 full time equivalents (FTEs). Fire personnel
respond to about 8,000 requests per year, the majority are EMS related. Their
performance is rated high, holding a rating of 4 on a 10 point scale where 1 is best.
Fewer than 7% of the cities in the U.S. achieve this rating. Among other things
measured for the rating is the speed of the response, an important life saving rating
to achieve. It does come at a cost, and is one of the tough decisions to make. For
citizens this rating is used by insurance companies and does have an impact on all
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of us. Reluctantly, if it were necessary and they don't want to see any of these
cuts happen, they proposed a cut of $396,000, basically six positions at different
points in time. Additional cuts not identified in the initial proposals total about
$725,000. Suggestions would be to eliminate the Battalion Chief position, one
immediately and two more at tier 2. If those were all eliminated, it would probably
be necessary to add a 3' deputy chief to cover those duties in rotation. The net
savings would only be $125,000. The second suggested cut, a much bigger net
savings of $600,000, involves eliminating the airport fire station, leaving only one
fire fighter and equipment to cover the minimum FAA requirements. Currently the
City covers all fire protection costs at the airport. They recommend exploring
sharing the cost with the County or regionalization. A regional fire district could
share coverage for the northwest part of Union Gap. This suggestion was made
because of the high cost of operating that fire station. It handles about one call
every eight hours.
Mrs. Skarin then spoke about the Parks Department noting they have 25.5 FTEs
(this does not reflect the number of summertime or part time help on staff). The
closure of two pools helped reduce the overall maintenance and operating costs by
$300,000. The team recommends these savings be put back into Parks in other
forms such as spray pools and basketball courts. They also support a study on the
feasibility of a centralized aquatic park. They recommend coordinating with school
districts about using playgrounds and school facilities, especially during the
summer months.
Ron Anderson addressed the Street Department. They have 38 FTEs and a $5.3
million budget. He referred to the problem of keeping streets in good repair as
funds decrease and the number of streets increases due to annexations. The
department is continuing to reduce the number of dirt streets with hard surfacing
but that effort does not include lighting, sidewalks, gutters or storm drains. It is an
effective method of reducing maintenance as well as improving air quality. Their
work with the Capital Facilities Committee is resulting in recommendations of
funding neighborhood and arterial streets using REET2 funds. He spoke about the
transportation element, expanding services with funding from a grant to provide
services to outlying areas. This will reduce traffic congestion and improve air
quality.
Leni Skarin spoke about the Library. The City contributes $1.4 million to the
library. The contingency plan proposed cuts of $566,000, representing a 40%
reduction in library contribution. In place of those reduction proposals the BST
recommends the City divest itself of the special relationship with the library and
suggests a voter directive be submitted in the next legal election regarding joining
the Regional Library system. They think the voters would accept this proposal and
it wouldn't impact the library.
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• GENERAL RECOMMENDATIONS
Employee Compensation
Based on the 2005 Budget Forecast, employee compensation accounts for 56% of
all operating funds, including self - supporting areas, and 76% of general
government expenditures. They reviewed many elements of compensation and
emphasized two points:
The City's overall employee compensation package is very generous. Some of the
bargaining groups member compensation appears to be out of sync (higher) than
• the local regional market. They recommend that the City's compensation package
as a whole be compared to that of both public and private local employers and to
comparable positions of public and private companies doing business in the areas
where recruitment would be focused. This kind of comparison of compensation is
considerably time consuming and costly for City staff to complete, so it would be
logical to hire an outside consultant. Through this analysis, the committee felt all
concerned would have a better understanding of what constitutes reasonable
compensation.
Ann Knapp referred to regionalization as a method of maintaining a high level of
customer service while providing efficiencies of services. They spoke with other
jurisdictions who seemed to have concerns about how regionalization would take
place. Although the BST did not supply recommendations on how to do it, they
think it is appropriate to create a greater Yakima metro government in the long
term. They identified several different areas as a high priority for regionalization;
Parks, with pocket parks, an aquatics center or whitewater park; Fire Services —
cooperate with the County and other jurisdictions, share equipment; Planning,
Code Administration and Economic Development — regionalize with the County.
Revenue Opportunities
Eileen Birge pointed out that their final report made twelve revenue opportunity
recommendations and she spoke about a couple of them:
• Having citizens join the Regional Library System would be an $88,000 savings.
• Implement a $25 fire inspection fee would raise revenue by $125,00 and cover
most of the fire inspection costs.
• Increase the EMS levy to fund equipment.
• Increasing the utility tax for large commercial customers, remove the cap.
Legislative recommendations
Mrs. Birge spoke about Fire and Police negotiations and how arbitration doesn't
look at the local cost of living nor the taxing authority's ability to pay. They suggest
using the Implicit Price Deflator (I PD) rather than the Consumer Price Index (CPI).
In the event the City and union reach an impasse, they think we should have an
option to put it to the voters.
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Forty -five percent of court fines and penalties go to the state. The City only
receives about 11% because people don't pay. The BST would like to see the
RCW changed to retain 100% of the fines and the option of seizing personal
property.
The BST strongly supports mitigation of the potential effects of the Streamlined
Sales Tax (SST).
Other Recommendations
They recommend enforcing City standards for building development in growth
management areas so when the new development is incorporated into the city we
are not burdened with huge costs to bring the infrastructure up to standards.
They also suggest marketing Yakima to seniors. Work with the Chamber of
Commerce and other groups to fund a sustained marketing program aimed at the
retiree market.
Coordinate large capital purchases with other local entities.
Civil Service Commission reform as there seems to be a tremendous amount of
overlap in duties and responsibilities. They felt this is worthy of additional
investigation, but it could require a charter amendment.
• Question and Answer session
Council Member Place questioned the idea of marketing to seniors noting that they
may require more services causing increased expenses. Mrs. Birge said they had
thought about that and, overall, seniors also don't require schools which are a high
cost item..
Council Member Bonlender asked if the City divested itself of the Library, how
would that affect the residents? Mrs. Skarin responded that would depend on what
the library did with its assessment.
Council Member Edler complimented the committee on the amount and level of
work they accomplished. He asked if any of the legislative recommendations had
been reviewed by the Association of Washington Cities or the state electives that
would give them any idea how based in reality they would be. Council Member
Place advised that we have brought the cost of living change idea to the legislature
four times now and we have talked about annexation every year as well. She
wasn't aware whether or not the idea of the retention of fines and penalties has
gone to the legislature. She said we have also asked for consideration of the
taxing authority's ability to pay and have, so far, been told it is not doable. But she
commented that maybe if we really focused on one of these things and tried to get
everyone to push it through we might be more successful. Council Member Edler
suggested, as a citizen's group, they might be able to wield some influence. Ron
Anderson said they have not formally gone to the people, but they are willing to go
out into the community as individuals or as a group to discuss these issues. Troy
Emmons added that their purview was to review and recommend. It is not in their
mandate to go to the legislature and recommend for the city. At this point it is up to
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the Council to review and implement proposals if they so decide. Although, he did
comment that the BST could be available to other interested groups, and might be
available for a future committee.
Council Member Edler said his concern is that some of the recommendations are
something all of us could spend a lot of time on over the next several years and yet
may make absolutely no progress at all. Mrs. Birge responded that if the City
were to do some of the things in the recommendation section maybe they wouldn't
have to make these cuts.' City Manager Zais interjected that, in addition to staff
conversations with the BST, there was an entire session devoted to meetings with
employee labor groups. Some of the recommendations evolved from that
discussion.
Council Member Sims thought the idea of going to the voters in case of a
negotiation impasse was an excellent idea. He expressed concern, though, about
the suggested $600,000 savings by eliminating the airport fire station. He thought
it would have to be relocated in order to cover the same area. He explained that
we have also tried to work with the County for financial assistance but they haven't
agreed to that yet. Mrs. Skarin said the elimination of that fire station is a worst
case scenario but it was necessary to call attention to the cost. It may not be worth
the benefits. This may be one of the most powerful arguments for a regional fire
authority.
Ron Anderson commented that in looking into the minutia of information from all
departments, they noted that the City has tried to work with other entities and found
roadblocks. He is hoping that this project will be a germination point for some of
those attitudes and mindsets to change so we can go beyond city /county borders
and begin to get done what needs to be done on a whole — regionalization. In
order to do it there has to be a complete mindset change in elected officials, staff,
and all levels of departments. We can no longer afford individual kingdoms. We
have to do what is best for the greater good of the community. Council Member
McClure commented that he has seen part of the turf issues change. Every time
we work hard with another entity it has been positive. There are individual
identities, yes, but it's been a pleasure to work with surrounding communities and
the County because they are all looking at doing a better job and saving money.
Also, a lot of the suggested long term fixes are the ones that give Council the most
frustration, our hands are tied so much by our state legislature. If there's nothing
else we focus on as a regional group, it should be to move forward to obtain the
freedom to better represent our people. Regionalization is critically important, the
legislative fix is equally important.
Council Member Place reported that, with regard to SST, the cities came to an
agreement last Thursday and presented to the counties on Friday. On Monday
she was notified that all 39 counties are going to support the 281 cities. They all
went together before the Department of Revenue and, hopefully, they are
developing a bill to protect all jurisdictions from Streamline Sales Tax.
• BST's perceptions of the process
Mayor George asked each member of the BST to make a statement on what they
felt was of the greatest value about the process:
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Eileen Birge — Felt she received the equivalent of a masters degree in municipal
finance. It was an incredibly educational experience. She had assumed
government is pork laden and fat but found it wasn't true; they are an incredible
group of people.
Leni Skarin — echoed Eileen's comments. She was impressed with how many
tough decisions had already been made by staff and Council. She spoke about the
team having different perspectives and the benefit of working with the group of
people with their expertise in different areas. She said there is not a better civics
lesson out there than to work on a committee. She hopes the city utilizes this
process for other kinds of studies and is willing to volunteer again to serve on a
different committee.
Ron Anderson — also echoed the others' comments and spoke about the
opportunity to get to know the people behind the scenes. Everyone they talked
with is doing an incredible amount of work under an incredible burden of trying to
squeeze everything they can out of their department. No one was complaining
about what they were doing, they find it challenging, but also find it rewarding and
want to contribute to the community. He also commented that there is no pork, no
luxuries being flaunted. They are working with old equipment, making do with
procedures that are outdated, and making the city operate in an efficient manner.
Ann Knapp — agreed with her teammates. She said she has learned much and is
pleased to be able to share information with folks on what the City is doing. She is
surprised how the citizens don't understand what is going on. It is important for us
to communicate this information back to the general public.
Trot/ Emmons - said the process was rewarding and fruitful. He met a lot of good
people doing difficult jobs sometimes under adverse conditions. Overall the city is
very well managed. He hoped some of the recommendations are implemented.
Robert Holtfreter — said he teaches a course in governmental accounting,
therefore, felt he had an advantage. His conclusion is staff is well paid, very good
and very cooperative. The city is run very efficiently and effectively. Overall he
sees a tough time coming. In 2007 the general fund balance will be zero, and
there are constraints on trying to increase revenues, therefore, the city is faced
with a problem. He gave an overview again of what they were trying to accomplish
by cutting costs and looking for revenues.
Mayor George responded that, with regard to being in a financial hole in 2007, it is
Council's policy to protect those fund balances. When they reach a critical point,
spending will stop. Council Member Sims said that the reason we have a
contingency budget and have had it for the last ten years, is so we wouldn't find
ourselves in a position in 2007 with no plan. He then highly complimented the
committee saying they were "blue ribbon ". City Manager Zais said, on behalf of
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staff, it was a privilege to work with this group. They challenged us and made us
think and that is what we wanted. He said it was a great opportunity for us to work
with them and we, hopefully, can get this message out to our citizens, educate our
taxpayers and ratepayers, on how complicated it all is. We pledge to continue this
effort with the citizens as we move on to address these recommendations. There
is always room for improvement; we're not satisfied with where we are today. We
have to keep moving the bar forward.
3. Audience Comments (8:45 a.m. — 9:00 a.m.)
Tom Snyder, Secretary/Treasurer of the Fire union, thanked the team, and
applauded their backbone. He said he was a little concerned about some of the
staffing issues and collective bargaining points but the firefighters are open to
discussions to talk about solutions.
Mayor George commented that it had been suggested that the committee go on
YPAC for a live televised discussion of what we've talked about today so citizens
can hear about city government from someone other than city staff. He also said it
could be very useful to have a town hall meeting where citizens could gather for
discussion with the committee.
3. Adjourn
•
McCLURE MOVED AND EDLER SECONDED TO ADJOURN TO OCTOBER 1,
2005 AT 8:30 A.M. AT THE HARMON CENTER FOR A COUNCIL STRATEGIC
,PLANNING MEETING. The motion carried by unanimous voice vote. The
meeting adjourned at 9:00 a.m.
READ AND CERTIFIED ACCURATE BY
;
B' `• DATE
COUNCIL MEMBER DATE
ATTEST:
CITY CLERK PAUL P. GEORGE, MAYOR
Minutes prepared by Linda Watkins. An audio and video tape of this meeting are available in the City
Clerk's Office
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