HomeMy WebLinkAbout11/29/2005 Adjourned Meeting 3 61,
ADJOURNED MEETING
NOVEMBER 29, 2005 - 8:30 A.M. - 12:45 P.M.
COUNCIL CHAMBERS - CITY HALL
1. RoII Call
Present:
Council: Mayor Paul George, presiding, Council Members Ron Bonlender,
Dave Edler, Neil McClure, Mary Place, and Susan Whitman
Staff: City Manager Zais, City Attorney Paolella and City Clerk
Roberts
Absent: Bernard Sims (excused)
2. Capitol Theatre (Budget Page E49 -55)
Steve Caffery, Capitol Theatre Manager, spoke about the declining ticket sales
in their Broadway series due to a product line that is not meeting consumer
demand. They tightened their belts and began looking for ways to generate
market support. They anticipate ticket sales will decline for the next two years
based on the available product. They need to enlarge their market base so they
hired a person to expand their programming, who did a market analysis and
started a for - profit venture of media buying services. Ticket sales for the last
show, Thoroughly Modern Millie, increased about ten points based on the
findings of the market surveys. They are looking at other ways to diversify their
facility to provide more services to a broader constituency. The capital
expansions are going well. They purchased the property in back of the theatre
and are in negotiations on property at 3rd Street and Yakima Avenue with a
willing donor to fund it. They are also beginning a legislative initiative to create
a public facilities district, about a $17 million project. In the meantime, the
realities are that cash flows are going down and they are anticipating a
$100,000 deficit on a $2 million budget. They are doing all they can to increase
revenues. Mr. Caffery then discussed the cash reserves.
3. City Management Department (Budget pg B1 —B104; Policy Issues pgs B63 -74)
• City Council
City Manager Zais pointed out that the most significant change for 2006 is the
adjustment in salaries that were earlier approved for the newly elected City
Council members beginning service January 1, 2006. Also budgeted is a
higher level of participation in professional services, training and lobbying
efforts at the state and national levels and increased use of transportation. It is
important we have a voice in Olympia and a lot of participation in Washington
D.C.
ADJOURNED MEETING — NOVEMBER 29, 2005
BUDGET REVIEW
• City Manager
City Manager Zais explained how the 2005 budget for this division was
transitional due to Glen Rice's retirement and cash out obligations. Those
were one -time expenses that have been concluded. There is also a planned
transition in the area of the executive secretary. The City Clerk is retiring,
Debbie Moore will be replacing her and Sonya Brandt will be replacing Debbie.
There is also a new Assistant City Manager, Dave Zabell, included in this
budget.
Policy Issue
Increase City Manager car allowance from $250 to $300 per month ($600 Budgeted)
The current rate was set in 1997. It is much more cost effective to have a car
allowance than a City vehicle. The average allowance in the state for other
cities our size is $400 a month.
• Legal
City Attorney Paolella noted that 2006 reflects an entire year's implementation
of the .3% criminal justice tax. He gave an overview of the department
workload. In the Criminal Division there are five full time prosecutors attending
to almost 14,000 court hearings a year which does not include infractions that
are not criminal. On the Civil side there are three Assistant City Attorneys as
well as some outside legal counsel support due to the need for specialized
areas of expertise, the volume of work, and occasional conflict of interest
issues. There are 50 or more damage claims each year plus 30 -40 litigations
pending at any time. The City of Yakima has the highest per- attorney caseload
in the state. In answer to a Council question of what is needed to be in line
with the rest of the state, Cynthia Martinez, Assistant City Attorney, answered
another prosecutor. It was also noted that every time more police are added,
their needs increase as well. City Manager Zais said the policy issue to
address the public safety study will also need to include Legal's requirements.
• Risk Management
Helen Harvey, Assistant City Attorney, and Rita Anson, Director of Finance and
Budget, reviewed the City's insurance coverage. The City is self- insured and
has a risk management reserve fund supported by an allocation from all
departments. Ms. Anson discussed other insurance coverage for the city; such
as the new Washington State insurance pool for transit services and gave an
overview of a proposal to convert our liability coverage program to a new
program with Cities Insurance Association of Washington.
• City Clerk / Records
Policy Issues
Add one Public Records Officer position in response to statutory amendments to
Public Disclosure Act ($ 56,300 Budgeted)
Ray Paolella, City Attorney, said that this request is in response to a state law
that went into effect mandating a formal designation of a public records officer.
Generally, the Public Disclosure Act has caused an increase in the amount of
time required to gather documents, form a response, coordinate legal
2
3 63:
ADJOURNED MEETING- NOVEMBER 29, 2005
BUDGET REVIEW
involvement, etc. We are proposing the position be staffed within the City
Clerk's office as a central receiving point. Karen Roberts, City Clerk, explained
that public disclosure work is not the only task that this person will do, although
it may turn out to be the major portion of their job. Another function will be
records management. The person will also help research an electronic agenda
program. This position is the blending of two separate requests from different
managers.
Upgrade of Pension Records Clerk position to Deputy City Clerk ($9,400 Budgeted).
Two people (out of three) in the City Clerk's Office will be leaving during 2006.
We are losing expertise, knowledge and history.
Karen Roberts, City Clerk, explained that the other significant part of this budget
is election costs received from the County. This is non - controllable. Although
we're hoping that mail -in voting will significantly reduce our costs in the future, it
hasn't yet and the costs are very high.
• Human Resources
Archie Sutton, Human Resource Manager, said their budget is stable except for
cash -outs due to his retirement in February. He noted that we have seen a
decrease of applicants, particularly in the police area (about 50 %). They are
working on some innovative ideas to help increase the number of applicants.
Employees' Health Benefit Reserve
The City is self- insured and governed by an employee representative board,
empowered to define medical benefits. Collective bargaining determines the
amount of out -of- pocket the employee unit pays. Mr. Sutton introduced Dan
Fisher, the City's insurance broker, who helped explain how the insurance board
works and how rates and benefits are determined. City Manager Zais said that
City employees contribute approximately $1.4 million to the cost of medical
coverage for premiums and cost sharing, about the highest percentage in the
state. The biggest share of increases is insurance costs in prescription drugs.
Mr. Fisher outlined some actions that have been taken to help control costs.
Policy issue
Employee Compensation Benefits Study (up to $75,000 Unbudgeted)
In their report, the Budget Strategy Team suggested there be a more
comprehensive look at public versus private and unionized /non - unionized
employees with regard to compensation. They realize this will be an extensive
effort, particularly with the public safety contracts. The BST recognized that the
Human Resource Division was not staffed to do this, therefore suggested an
outside consultant be hired. Staff will develop a proposal and cost estimates for
funding the study. It is the intent to look at the regional marketplace, both public
and private and develop some comparative data for use in negotiating contracts.
There was quite a bit of discussion on this subject. Some points made were:
- If money is spent on outside consultants, citizens are going to want to be sure
there is a benefit.
- Bothell's study cost about $92,000 and resulted in some substantial salary
increases.
- It will be a challenge to have the private sector release their information
- If you get the information, you have to take action on it.
3
3 6'4
ADJOURNED MEETING - NOVEMBER 29, 2005
BUDGET REVIEW
- Some information may have to be statewide, or even national, when
considering recruiting areas
- The biggest cost drivers don't have comparables (police /fire) and even if it is
discovered we're paying them too high, it won't make any difference.
- It should be on the legislative agenda to change some of the comparables in
order to keep in mind that it is cheaper to live in Yakima.
• Purchasing
Sue Ownby, City Purchasing Manager, and Debbie Anderson, County
Purchasing Manager, gave a coordinated presentation depicting what has been
done to increase efficiencies in purchasing. There are over 60 entities involved
in interlocal agreements, sharing services, combining programs, and doing
cooperative contracting.
Following a short recess, the meeting resumed at 10:00 a.m.
• Community Relations
Randy Beehler, Community Relations Manager, spoke about the discussion on
the federal level to rewrite portions of the Telecommunications Act originally
passed in 1996. From the early drafts of the Senate legislation, it appears to
be a significant threat, as it would pre -empt much of the authority for occupants
of the right of way, the telecom providers. They will be watching it very closely.
He also spoke about various grants they receive and their expected capital
outlays for next year. They have requested a vehicle to support the expanded
YPAC coverage. They plan to purchase a used vehicle for a lower price. The
biggest capital expense would be $100,000 for television equipment, minor
lighting, and audio equipment in the proposed joint assembly hall. That money
will only be spent if we go forward with leasing the space in the Bank of
America building.
• Wastewater
Max Linden, Utility Engineer, and Doug Mayo, Wastewater Manager, were
available for questions. They reviewed the status of current projects and those
planned in 2006. They did note that this year was a drought year resulting in
the billable flow being down about 6 %, and revenues down about 1 %.
Policy Issue
Add one Pretreatment Technician Position for the Fat, Oil, and Grease
Program ($52,900 Budgeted)
This person's main function would be to visit the establishments that do
cooking. Although we're doing better, we need more frequent contact for
grease control. We could consider assessing fines with repeat offenders.
Water /Irrigation
Irrigation System Improvements
Dave Brown, Water and Irrigation Manager, gave an update, noting that a lot of
work (listed on page 97 of the budget) has been accomplished. Two - thirds of
the west Yakima system will be done in the coming year. He also gave a
breakdown of the funds for the various improvement projects.
4
3 6.5
ADJOURNED MEETING — NOVEMBER 29, 2005
BUDGET REVIEW
Jim Barnhill, President of the Lake Aspen Homeowners Association, spoke
about the open ditch in front of Lot 53 of Lake Aspen Village. He said they have
met with Dave Brown about the feasibility of piping this ditch. Mr. Brown
advised them it is being looked into, but it is not an irrigation project. The Old
Union Canal Company has the budgetary decision on it and their annual
meeting isn't until January. He noted that it really is an engineering project.
Council Member Edler recommended our staff pursue this and make it work for
all parties involved.
Policy Issue
Add one Cross Connection Control/Water Meter Crew Leader position ($56,800
Budgeted)
Mr. Brown explained that currently there are three Crew Leaders and two Cross
Connection Control positions. As cross connection gets bigger and bigger with
additional rules applied, they need another person to handle them. Discussion
ensued on various duties that need to be covered. This position isn't just growth
related, but also the result of many mandates.
Also discussed was the portion of the budget going to the Yakima Storage Basin
Alliance that is working on the Black Rock effort. Mr. Brown said his concern is
that, if it is ongoing beyond another year, another rate increase would need to
be considered to cover it. Currently, because it is unbudgeted, it has been
coming from reserves in water and irrigation.
4. Library (Budget Page 1 -2; Policy issue 162)
Monica Weyhe, Library Director, read from a letter she had written to the
Council regarding three interrelated issues for library services for the three
libraries:
1) The Library District's offer to pay $100,000 to purchase the jointly owned
downtown library in lieu of the City's proposed reduction of $100,000 for its
contractual payment for library services in 2005
2) The recommendation by the Budget Strategy Team for the City to divest itself
of its special relationship with the Library District and vote to annex to the district
instead and,
3) The City Managers recommendation to cut the 2006 contract for library
services by an additional $100,000.
Mrs. Weyhe referred to the offer made last year by the Rural County Library
Board of Trustees to transfer $100,000 cash to the City in exchange for all
interest in the land and building known as the Downtown Library. She
announced that the offer is subject to the Council's determination that annexation
to the Library District is in the best interest of its citizens, and then passing the
required ordinance and resolution, preferably in time for the May 16, 2006 special
election. She also asked the Council to not support the City Manager's
recommendation to cut the 2006 payment by another $100,000.
After much discussion between Mrs. Weyhe and Mr. Zais, it was clarified that the
original offer to purchase the interest in the land and building was now being
conditioned on the Council supporting holding an election for annexation to the
Library District. Mrs. Weyhe confirmed that they are asking the City to not
5
366
ADJOURNED MEETING — NOVEMBER 29, 2005
BUDGET REVIEW
reduce their 2006 budget payment by $100,000 and to pay for it out of reserves.
She assured the Council that money would be returned when the annexation was
approved through an election. Mr. Zais identified that as problematic due to the
changing Council. The current Council is being asked to review the proposal yet
it is the next Council that would be calling for the election. The 2005 budget
relies on the $100,000 from the sale of the property agreed to last year. The
2006 budget is balanced by an additional $100,000 reduction.
Discussion continued on the Budget Strategy Team's recommendation of
annexation to the Library District and the need for and benefit from a successful
election. Mrs. Weyhe emphasized the importance of this Council voicing their
support of the annexation to the new Council.
5. Executive Session
PLACE MOVED AND EDLER SECONDED TO MOVE INTO EXECUTIVE
SESSION FOR APPROXIMATELY 45 MINUTES REGARDING PROPERTY
DISPOSITION WITH ADJOURNMENT THEREAFTER TO DECEMBER 6,
2006 AT 8:30 A.M. FOR THE BUDGET WRAP -UP. The motion carried by
unanimous voice vote; Sims absent.
6. Adjournment
Following the Executive Session, the meeting adjourned at 1:00 p.m.
READ AND CERTIFIED ACCURATE BY
CO_
ON :ER / DATE
�
COUNCIL MEMBER DATE
ATTEST:
e&e-02
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
6