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HomeMy WebLinkAbout02/28/2006 Adjourned Meeting 2 4: 5, 5. ADJOURNED MEETING OF THE YAKIMA CITY COUNCIL FEBRUARY 28, 2006 - 9:00 A.M. COUNCIL CHAMBERS - YAKIMA CITY HALL 1. RoII Call Present: Council: Mayor Dave Edler, presiding, Council Members Ron Bonlender, Micah Cawley, Norm Johnson, Bill Lover, and Susan Whitman Staff: City Manager Zais, City Attorney Paolella and Acting City Clerk Moore Absent: Council Member Neil McClure (excused) 2. Consideration of report and legislation regarding a proposed annexation election of the City of Yakima public library to the Yakima County Rural Library District No. 1, and the disposition of property vested in the Yakima Public Library Board of Trustees: City Manager Zais gave opening statements and noted that today's discussion is on the future of the library and a method to give greater control over its funding. The library has been a part of the City's overall budget and a recipient of a portion of property taxes. In the last five years there has been a growing trend of restrictions of the City's revenues, a limited growth in property taxes, and competing pressures for fixed costs. Services like the library are competing with public safety and criminal justice costs. The tough decisions we have had to make on balancing the budget have caused a gradual erosion of the library's financial base. The Budget Strategy Team was directed to examine alternatives for revenue sources and expenditure controls for the City of Yakima. Their report issued 9/30/05, made a recommendation to pursue an annexation election of the library, voted on by the people, to permanently dedicate new funding for the library through property tax. This public meeting is to help the citizens of Yakima understand the proposal and how it would affect them. We are also looking at a property transfer and have blended this together in legislation for an annexation election and property transfers, as well as correcting some long standing ambiguities in the underlying contract. We have done the legal research, and are at the point of helping the community understand the issue. A. Calendar of actions necessary to complete annexation Monica Weyhe, Director of Yakima Valley Regional Library System, explained that with the decrease in the City's support, the library was at risk of having to close both the Summmitview and Southeast branches. They decided to hold the election in April rather than competing with the school district's election in May. To meet a schedule of holding the election on April 25 a series of special Library Board meetings were held yesterday and today's special meeting is the last date the City Council could take actions in order to meet the 45 -day deadline to place this on the ballot. At the Public Library Board hearing yesterday on the transfer of property and the three Library Boards meetings, all ordinances and resolutions were passed. 4 5' 6, ADJOURNED MEETING — FEBRUARY 28, 2006 LIBRARY ANNEXATION B. Draft fact sheet describing issues regarding library annexation Mrs. Weyhe presented a graph showing the gap in contributions versus the library levy rate. She explained in detail the negative effect the City's property annexations has on the library'funding. That is why the library is looking for an alternate funding source, and that source is annexation to the Library District. It would not change the library district rate, but would shift the City's funding for the library from the general fund property tax to the library levy. It would mean that the citizens within Yakima would pay about $0.15 per thousand dollars of assessed property value. She gave an example that a home valued at $130,000 would cost about $19.50 a year for the taxpayer through annexing to the library district. This is less than the cost of an average hardback book. For that money they would get continued services through the three city libraries. Without that additional revenue source, the Library District does not have the funding to keep all three libraries open and would be at risk of closing the two outlying libraries in 2007. C. Financial analysis of library annexation Cindy Epperson, Financial Services Manager, explained the detailed tax aspects. The total property tax rate is currently $3.38 per thousand with $0.32 being allocated to the library. Upon annexation to the Library District, the city's levy rate would actually be reduced from $3.38 to $3.12 per thousand and the library rate would go up from $0.32 cents to $0.475 per thousand for total rate to taxpayers of $3.60 per thousand. This is the maximum per statute. In that scenario, the city would gain about $0.07 cents per thousand on assessed valuations. That was part of the BST recommendation to recognize the slight gain and help close the gap of what we were spending out of reserves. If the annexation vote is successful, in November the Library Board will set the rate for the entire County district and the City Council would set its rate at the maximum lawful levy. At that point the City would be part of the County rate set by the Library Board. City Manager Zais noted that since 2000 five communities have decided that annexation was in their best interest. They passed the resolution for annexation and the people overwhelmingly voted their support. Once people understand that their libraries are in danger of closing, they believe it is a service worth paying for. Voter approved initiatives are because people want to have the choice of how to spend their money. But, an election costs money. The City and the Library Board agreed to share equally in the cost that they believe could range between $25- 30,000. He explained that a key feature of this proposal is representation on the Library Board. The City has been assured that the new board will have at least one member from City Council. D. Fact sheet describing the downtown Yakima library property disposition Mrs. Weyhe gave historical information regarding the property. The major points were: • The current Yakima Valley Regional Library System was formed when the City joined, by contract, with the County library system in 1951. • In the late 50's the city and county passed bonds to build the current library facility. $800,000 was collected for these bonds, split evenly between City and County residents. • In 2005 it was determined the building was owned 50% by city board of trustees and 50% by county board of trustees, and the land, consisting of 8 parcels, 25% by 2 4,5 7 ADJOURNED MEETING — FEBRUARY 28, 2006 LIBRARY ANNEXATION County trustees and 75% by the trustees of the City of North Yakima and the City of Yakima. • The County Library District offers to pay $100,000 to the city trustees in order to get the title all in one name within one body so we can more easily obtain loans for needed renovations. • During the research KDF Architects did a condition assessment and determined it will cost between $4 -9 million to bring the facility up to today's standards. As co- owners, the City and Library would have liability of half the amount each within the next few years to bring the building to today's standards but for a mere $100,000, they are offering to obtain 'clear title and invest all of the title in the County Library Board of Trustees. City Manager Zais said the City is in concurrence and recommends this to Council to clear the property issue. D Citizen Comments Ester Huey, 7003 Chinook Drive, urged Council to vote in favor of putting the annexation on the ballot. She also urged audience members to join the Friends of Libraries. Arnold McBean, 13207 Barrett Road, wondered how eliminating $100,000 would necessitate the possibility of closing two branches. He asked how long it has been since there has been an audit of the library system to see how the $6.2 million is being used. He said he would vote to support the library but expects them to be accountable for the money they are receiving. Darlene Lust, Library Trustee, responded that they are audited every two years by the state and have passed with flying colors. The following people came forward to speak in support of the library annexation: Gilbert Alaniz Mr. & Mrs. Don Rome Henry Beauchamp Steve Mitchell Leni Skarin Lawrence Breer Mrs. Weyhe added that the Committee for Downtown Yakima wrote letters of support for the property transfer. D Council Weighs In Council Member Lover expressed his concerns. The ballot will only say should the library be annexed? This is a tax increase but it won't show that on the ballot. The voter will hear this proposal described in numbers and ratios, so much per thousand. Confusion will arise when promoters or detractors start comparing county resident levy costs against city resident contract costs, and all the other figures. What the voters are really going to hear is, if you don't vote for this the libraries will close. He said he is not convinced of this. He was'on the committee that approved this report, but he feels the timing may not be right. If you are a city property owner, the bottom line equates to an annual property tax increase of $22 for each $100,000 assessed. This is a property tax levy without the super majority requirement. This is a tax issue, not a library closure issue. Council Member Johnson said he would be voting in favor of the annexation. He described his experience as a trustee of the Goodrich library in Toppenish. At that time the library board came to them and pointed out the advantages of contracting with the 3 45.R. ADJOURNED MEETING — FEBRUARY 28, 2006 LIBRARY ANNEXATION regional system. They did and it was probably the smartest move they made as it assured them they would have a library and have the books to put into it. Council Member Bonlender commented that he is for the annexation. Council Member Cawley said he feels that you never go wrong when the people get a chance to vote on where their money goes. Council Member Edler commented that this is a difficult decision as it is a difficult time to govern. He also feels it is right to put this decision in the hands of the citizens of Yakima. This is a decision to empower this community to be a better place to live. Next he recommended ratification of a resolution of the Yakima Public Library Board of Trustees. It was considered by the Board yesterday and signed. Mr. Cutter also passed around the resolution of the Board of Trustees from the Rural Library,District concurring to the proposed annexation. The Public Library Board is recommending the ratification. This is not something the Council is voting on but is an administrative step necessary for annexation consideration. Mrs. Weyhe said the five - member City Board recommends ratification by the City Council. E. Motion ratifying Mayor's appointment of Library trustees Jeff Cutter, Assistant City Attorney, explained the items needing to be accomplished. He said it would be appropriate for the mayor to recognize and ratify the current Yakima Public Library Board of Trustees; Darlene Lust, Melba Fujiura, Sue Rigdon, Victor Lara, and Larry Marvin. JOHNSON MOVED AND LOVER SECONDED TO RATIFY THE BOARD OF TRUSTEES FOR THE YAKIMA PUBLIC LIBRARY. The motion carried by unanimous roll call vote; McClure absent. F. Resolution authorizing approval of Memorandum of Understanding describing terms of disposition of library property and other economic concerns Mr. Cutter explained the terminations of the agreement between the City and the County, and the agreement that at least one individual will be nominated by the City Council from its citizens to serve on the District Library Board of Trustees. The City Clerk read the resolution by title only; JOHNSON MOVED AND BONLENDER SECONDED TO ADOPT THE RESOLUTION. The motion carried by unanimous roll call vote; McClure absent. RESOLUTION NO. R- 2006 -24, A RESOLUTION authorizing the execution of a Memorandum of Understanding between the Yakima Public Library Board of Trustees, the Yakima Regional Library Board of Trustees, the Yakima County Rural Library District No. 1 Board of Trustees and the City of Yakima, providing for the transfer of the Yakima Public Library Board of Trustees' vested interest in the real property known as the Yakima Downtown Library and providing for Yakima City Council nomination of a citizen of Yakima to be presented by the Library District Board of Trustees to the Yakima County Board of Commissioners for appointment to the Library Board. 4 4 5‘9i ADJOURNED MEETING — FEBRUARY 28, 2006 LIBRARY ANNEXATION G. Proposed Ordinance adopting annexation of City to County Rural Library District / The City Clerk read the ordinance by title only; BONLENDER MOVED AND CAWLEY SECONDED TO PASS THE ORDINANCE. The motion carried by unanimous roll call vote; McClure absent. ORDINANCE NO. 2006 -05, AN ORDINANCE of the City of Yakima City Council initiating the process that will result in a special election to determine whether the City of Yakima shall terminate its contractual affiliation with the Yakima County Rural Library District No. 1, jointly operating as the Yakima Valley Regional Library, and be annexed into the Yakima County Rural Library District by declaring the required intent to join the Rural Library District and by finding that such annexation is in the public interest. H. Resolution of the Yakima City Council to the Yakima County Board of County Commissioners requesting a special election for City annexation The City Clerk read the resolution by title only; JOHNSON MOVED AND WHITMAN SECONDED TO ADOPT THE RESOLUTION. The motion carried by unanimous roll call vote; McClure absent. RESOLUTION NO. R- 2006 -25, A RESOLUTION requesting a special election be set on April 25, 2006 in the City of Yakima regarding the annexation of the City of Yakima to the Yakima County Rural Library District No. 1, presently operating as the Yakima Valley Regional Library. I. Resolution of the Yakima Public Library Board of Trustees recommending the City annexation to the City Council (No action necessary by the City) This is a resolution adopted by the Yakima Public Library Board of Trustees, provided for Council information. J. Resolution authorizing execution of agreement between the City, Library Districts and Yakima County regarding Library Board representation The City Clerk read the resolution by title only; CAWLEY MOVED AND BONLENDER SECONDED TO ADOPT THE RESOLUTION. The motion carried by unanimous roll call vote; McClure absent. RESOLUTION NO. R- 2006 -26, A RESOLUTION authorizing the execution of an Agreement of Consideration between the Yakima County Board of Commissioners, the Yakima Library District No. 1 Board of Trustees and the City of Yakima, setting forth the understanding that the Yakima City Council shall nominate a citizen of Yakima for presentation by the Library District to the Yakima County Commissioners for appointment to the Yakima Library District Board of Trustees. Monica Weyhe, Library Director, and Darlene Lust, Library Trustee, explained their request for the City to hold a public hearing in support of the ballot proposition. City Manager Zais pointed out that the governing body can hold a'pro /con hearing before the voters. The Council will have three choices following the hearing: remain neutral, vote opposing the ballot measure, or vote in support of the ballot measure. One other choice would be to stay neutral and not hold a public hearing. Council Member Lover stated 5 4 6.6; ADJOURNED MEETING — FEBRUARY 28, 2006 LIBRARY ANNEXATION that he does not want this to become a standard policy for this Council and will vote against it. Council Member Bonlender disagreed claiming the City should offer every opportunity for the public to speak and that Council has a responsibility to let the public know how they feel on the issue. BONLENDER MOVED AND JOHNSON SECONDED TO HOLD A PUBLIC HEARING ON MARCH 21, 2006 WITH REGARD TO LIBRARY ANNEXATION. The motion carried by a 5 -1 roll call vote; Lover voting nay; McClure absent. 3. Adjournment to March 7, 2006 at 11:30 a.m. -1:30 p.m. for Executive Session regarding pending and prospective litigation CAWLEY MOVED AND WHITMAN SECONDED TO ADJOURN TO MARCH 7, 2006 AT 11:30 A.M. FOR AN EXECUTIVE SESSION REGARDING PENDING AND PROSPECTIVE LITIGATION. The motion carried by unanimous voice vote; McClure absent. The meeting adjourned at 10:53 a.m. ,r x READ AND CERTIFIED ACCURATE BY - CCU 1 - IL'v r R DATE (if 11//1/0(9 COUNCIL MEMBER DATE ATTEST: /// CIT LERK / I DAVID " R, MAYOR Minutes prepared by Linda Watkins. An audio and video tape of this meeting are available in the City Clerk's Office. 6