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HomeMy WebLinkAbout11/13/2007 Adjourned Meeting 56' ADJOURNED MEETING • NOVEMBER 13, 2007 - 8:30 A.M. - 12:00 NOON COUNCIL CHAMBERS - CITY HALL BUDGET REVIEW 1.. RoII CaII Present: Council: Mayor Dave Edler, presiding, Council Members Ron Bonlender, Micah Cawley, Norm Johnson, Bill Lover, Neil McClure, and Susan Whitman Staff: Dick Zais, City Manager; Rita DeBord, Finance and Budget Director; and City Clerk Moore Mayor Edler asked the City Manager to speak about the recent Supreme Court ruling on Initiative 747, removing the 1% lid. He also asked about the $20 car tab issue that may possibly be coming up. Mr. Zais reported that the Council Budget Committee talked about the 1% property tax issue last week. When the announcement was made by the Supreme Court, the Governor's office issued some preliminary guidance and anticipated the Legislature will be taking the matter up soon. The City of Yakima's budget has been submitted and, for the record, is balanced on the presumption that there would be the continuation of the 1% adjustment in property tax and new construction. The $20 car tab issue also has other options in it and is not something that has to be acted on in any timeline. Mayor Edler spoke as an independent member of the Council wanting to go on record that he has little confidence in our Legislature taking care of this. They promised to backfill and have failed to do so. Cities like the City of Yakima are now beginning to feel the weight of the decisions that are being made at the legislative level. He also went on record stating that making budgetary decisions with the surplus that is hanging over our state makes it difficult to 1) heed the advice of our Governor, and 2) to trust our Legislature. 2. Public Works Department Chris Waarvick, Director of Public Works, gave opening statements on the Public Works budget. They will continue with surface preservation of streets as well as working more closely with schools and neighborhoods to encourage traffic safety. He pointed out that Refuse has accomplished a goal, set over seven years ago, to fully automate all refuse accounts. Parks is engaged in two important studies; 1) a Metropolitan Parks District, and 2) a regional aquatic center. This was the first year of the full four -field wheel at Kiwanis Park. The skate park will be under construction next spring. Transit expanded their service area to Selah and potentially with Union Gap. Mr. Waarvick identified a number of Transit policy issues, one of which is a rate increase. He also handed out a fuel conservation plan. • Administration -- pgs. PW 1 -11 — no policy issues Mr. Waarvick responded to a question regarding an increase personnel benefit that it related to a retirement cash -out for a long -term employee. ,5 �7 BUDGET REVIEW — NOVEMBER 13, 2007 • Streets and Traffic -- pgs. PW 12 -31 — no policy issues Council Member Johnson suggested attempting to obtain assistance from Olympia on the crosswalk requested for 16 Avenue and Hathaway. Shelley Willson, Streets and Traffic Manager, explained the street maintenance schedule. They have a program whereby every street should be addressed in a 12 -15 year cycle. That pushes the outer limits of adequacy; 5 -7 years would be better on heavily traveled streets, but on less traveled streets 12 -15 years is probably adequate. When asked, Mrs. Willson responded that approximately 20% of our City streets are beginning to fail in our current schedule. They are updating their pavement rating and will include newly annexed streets in the West Valley area. Also discussed was street lighting and the potential of utilizing LIDs to obtain streetlights. City Manager Zais pointed out that the Streets budget was reduced approximately $100,000 as part of reduction effort. Also discussed was the proposal to move the 2008 fall leaf budget to Refuse. • Transit -- pgs. PW 32 -46; PI -PW 2,4 Purchase three heavy -duty, low -floor transit buses — budgeted. The new buses will replace 17 year old vehicles that have become expensive to maintain. The new buses are more fuel .efficient. Mr. Mehin, Mr. Zais, and Mr. Waarvick responded to a question from Council Member Lover about replenishing funding from capital reserve funds. Add one half -time DA II position — Budgeted. The position is to handle administrative work and transit information calls. Bus fare fuel surcharge — Unbudgeted. This policy issue raises fare rates for a revenue increase of $30,000, recovering only a small portion of costs. Discussion covered the increase of Dial=A -Ride fares. Monthly bus passes will not increase. Dial -A -Ride equipment purchase — Budgeted. It was noted we received a grant toward the $280,000 expense, whereby the City will pay only 20% of the cost, or $56,000. • Refuse -- pgs. PW 47 -55; PI -PW 6,9 5% Refuse rate increase — Budgeted. Nancy Fortier, Refuse Manager, explained the increase is to cover anticipated expenses in 2008. The last increase was 3% two years ago. 2% rate increase to take over the fall leaf program and add Dial- a- Dumpster program — Unbudgeted. Mrs. Fortier advised that, with the completion of the automated system, they reduced personnel by a half -time person in 2008. Plus they expect to be able to cover the leaf removal program with current staffing. She explained the proposed change to the program where they will utilize disposable bags eliminating the need to remove the leaves from plastic bags. The operation and costs were described in detail. Moving the cost burden of the program from Streets to Refuse allows for additional street services. Council Member Lover commented that he thinks the increase is too high. The Dial -a Dumpster program was explained. Council Member Lover commented that he thinks this could be funded through ONDS and it should not be part of a rate increase consideration. Council Member Lover also pointed out the need to change the job title of Crew Leader as there is no crew involved anymore. • Equipment Rental -- pgs. PW 56 -67; PI -PW 11 Richard Wonner, Fleet Manager, said the major impacting item is the fuel situation. Over the last three years, the budget for fuel has doubled. He described steps being taken to deal with this cost increase. He also spoke about the rise in fleet service demand due to the City's increase in size and population. O 2 5 BUDGET REVIEW — NOVEMBER 13, 2007 Install vehicle wash fluid containment system — budgeted. Mr. Wonner explained the need for this system. The fleet consists of about 500 vehicles; in total about 700 pieces of equipment, many that have to be cleaned on a daily basis. When they pressure wash them, there is an accumulation of debris that washes off. There is a moderate risk with regard to waste, and the sludge has to be collected, eventually plugging up the underground trench. Wastewater collections must come out with the vactor truck. With regard to stormwater issues, the situation will get worse. • Parks and Recreation -- pgs. PW 68 -92; PI -PW 14 Denise Nichols, Parks and Recreation Manager, advised that she will be retiring during 2008. She gave an overview of the state of the Parks Division. Although she has a dedicated staff, things are getting more difficult with budget constraints. There have been, and will continue to be, some hard choices to make. The public wants many services, but the cost of those services continue to increase. Parks acreage has expanded in the last ten years and there has been significant development. Although this enhances the quality of life for citizens, it also includes maintenance costs. This year Parks was asked to make some tough choices, and the 2008 budget reflects close to $200,000 in reductions. She shared what has been reduced: The RSVP program through the Harman Center The summer concerts and summer cinema The budget for taking care of trees in parks and City rights -of -way A Parks maintenance technician was eliminated Downtown maintenance subsidy is no longer provided . Professional services reduced Tahoma Cemetery subsidy reduced Reduced vehicle maintenance replacement fund Other areas: Supplies, Miscellaneous accounts, Small tools An unfavorable reduction was Fisher Golf Course. It is fully funded in the 2008 budget but is dependent on a subsidy close to $100,000. That subsidy will continue to go up year after year unless we find some cost containment. • Fisher golf course review — Unbudgeted. This item is based on Council direction to form a subcommittee. They are looking at some promotional and marketing ideas at the golf course to enhance rounds of play. We were directed to not make any changes in the golf course for 2008 until the committee has a chance to weigh in. There was discussion on the role of the committee and the need to discontinue subsidizing from the general fund budget. 15% general fee increase — Budgeted. Mrs. Nichols corrected the policy issue to a 15 % -20% increase across the board. 2008 shows a $0.25 increase in the rate at the pools. All fees are going up, except Fisher Golf Course. Council Member Cawley would rather look into cutting people rather than increase fees. Harman Center Improvement /Parking lot — Budgeted. Last year, working with the Engineering Division and a subcommittee from the Harman Center, a study was done on realigning the parking stalls. The cost is estimated at $35,000. Council Member Lover thinks it can be done for less. • Cemetery -- pgs. PW -93; PI -PW 25 20% fee schedule for Tahoma Cemetery — Budgeted. Mrs. Nichols explained this will keep the cemetery within the market. City Manager Zais explained there have been at least three studies looking at the cemetery, and there are legal constraints. We can only use the interest on the Endowment Fund. As a result, it always comes back to fees being necessary in order to maintain the cemetery. Council Member Johnson suggested the Legislature be 3 5 9 BUDGET REVIEW — NOVEMBER 13, 2007 approached with regard to changing the ruling on the Endowment Fund (perpetual care) to free up money for upkeep. Council Member Cawley again asked if there was the possibility of reducing staff to get more money rather than increasing fees affecting citizens. Mr. Waarvick responded that cutting people causes work not getting done. Council Member Lover asked what is causing the fee increase. Mrs. Nichols advised that in order to reduce the subsidy from $120,000 to $90,000 she shifted some staff out of the cemetery. It will now be managed by a crew of two full -time maintenance workers. They used to have four part -time seasonal workers, and that has been cut in half. Council Member Johnson asked to see a comparison of costs for Toppenish and Zillah's cemeteries. . Meeting Conclusion Mayor Edler commented that today's budget review is one of the most difficult because these are the items that seem to always be on the chopping block. It is a huge challenge to continue to reduce dollars from our Street Division knowing our streets are failing. It doesn't make a lot of business sense to allow infrastructure to fail. We have also reviewed the quality of life issues, a strategic direction priority, and here we are saying we have reduced $200,000 from that particular budget. These are difficult choices. City Manager Zais gave a few highlights of capital dollar investments. There has been a significant contribution of REET 1 dollars and grants supplementing our capital improvement budget for both the Fire Department and Parks. Mrs. Nichols spoke about the receipt of a $500,000 grant from the IAC for development of upper Kiwanis including the east side skate park. The Harman center parking lot is another capital budget item. In addition, we have set aside $50,000 to rehabilitate Franklin pool. 3. Adjournment • McCLURE MOVED AND WHITMAN SECONDED TO ADJOURN TO TUESDAY NOVEMBER 20, 2007 AT 8:30 A.M. — 12:00 NOON FOR COUNCIL BUDGET REVIEW IN THE COUNCIL CHAMBERS. The motion carried by unanimous voice vote.' The meeting adjourned at 11:37 a.m. OP READ AND CERTIFIED ACCURATE BY / s' , 1� ��i' CrUN I - , ,1 DATE Wil f Orf412 4 COUNCIL MEM: DATE ATTEST: /FA , ,► cry, _� CITY CLE K DAVID EDLER, MAYOR Minutes prepared by Linda Watkins. A CD and DVD of this meeting are available in the City Clerk's Office • 4 -- •,