HomeMy WebLinkAbout12/04/2007 Adjourned Meeting 7s
ADJOURNED MEETING
DECEMBER 4, 2007 — 8:30 A.M. — 12:00 NOON
COUNCIL CHAMBERS - CITY HALL
BUDGET WRAP UP
1. Roll CaII
Present:
Council: Mayor Dave Edler, presiding, Council Members Ron Bonlender, Micah
Cawley, Norm Johnson, Bill Lover, and Susan Whitman
Staff: City Manager Zais, Finance & Budget Director DeBord, and City Clerk
Moore
Absent: Neil McClure (excused)
➢ Opening Statements
City Manager Zais described the budget process. Decisions are to be made on the policy
issues today. The budget still depends on reserves, but somewhat Tess than when this year's
process began. The reliance on reserves is something we manage carefully. In round
numbers, the general government budget is approximately $58 million, and the total overall
budget is near $181 million. A significant amount of the budget is in utilities and capital
improvements. Although the budget has increased by $2 million since the original forecast, the
good news is that all of that increase is covered by revenue streams. This is an austere budget.
We have made nearly $800,000 in reductions in the general operating budget. Council Member
Bonlender re- emphasized that the large increase in the size of the budget is not just growth of
government spending, but also reflects large capital projects covered by grants. Council
Member Lover stated that the operating budget is the most important product of the Council,
and it is necessary to look at the actual details to truly understand it. He gave comparison
information of growth in population and budgets since 2005. He also spoke of the Council
Budget Committee whose goal was to identify $2 million in expenditures to be eliminated. $2
million dollars in reductions were identified and approximately $800,000 in savings was realized.
He claimed that City expenditures are still growing faster than our economy and our revenues,
and one of our highest priorities should be to stabilize spending in -line with established
revenues. In response to a request from Mayor Edler, Mr. Zais gave details of the budget
increases identifying various major projects such as Washington Avenue, River Road,
Downtown Futures Initiative, the Kiwanis ball fields, and the pursuit of the Railroad Grade
Separation. Once these projects are completed the cost drops to maintenance only.
2. Budget Wrap -up Document
I. OUTSIDE AGENCY AND INTERGOVERNMENTAL REQUESTS
Outside Agency Requests
➢ Yakima County Development Association (New Vision); General Fund, $19,913
budgeted, $87 unbudgeted = $20,000 total.
LOVER MOVED AND JOHNSON SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
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DECEMBER 4, 2007.— BUDGET WRAP UP
➢ Yakima Chamber of Commerce; General Fund, $5,900, budgeted.
BONLENDER MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried
by unanimous voice vote.
➢ Hispanic Chamber of Commerce; General Fund, $5,900, budgeted.
BONLENDER MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried
by unanimous voice vote.
➢ Fourth of July Committee; General Fund, $5,000 budgeted; $500 unbudgeted.
JOHNSON MOVED AND CAWLEY SECONDED TO APPROVE AT $5,500. WHITMAN
MOVED TO AMEND THE MOTION TO NOT FUND AT THE FULL AMOUNT BUT
REDUCE IT TO $2,500 AND DISCONTINUE FUNDING IT IN 2009. The motion to amend
died for lack of a second. The original motion carried by unanimous voice vote.
➢ Sunfair Association; General Fund, $1,000 budgeted.
BONLENDER MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried
by unanimous voice vote.
➢ Yakima Basin Storage Alliance, Black Rock; Water Reserves (60 %) $18,000, Irrigation
Reserves (40 %) $12,000, budgeted, or partially from General Funds (unbudgeted).
BONLENDER MOVED AND JOHNSON SECONDED TO ADOPT THE $30,000 WITH
$18,000 FROM WATER RESERVES AND $12,000 FROM THE GENERAL FUND. Council
Member Lover said he would like to see it all come from the general fund because only a
certain portion of the city is serviced by Yakima Water. LOVER MOVED AND CAWLEY
SECONDED TO HAVE THE ENTIRE $30,000 COME FROM THE GENERAL FUND.
Following discussion, the amending motion failed by a 3 -3 roll call vote; Edler, Whitman and
Bonlender voting nay. The question was called for a vote on the original motion. The
motion failed by a 3 -3 roll call vote; Lover, Cawley and Edler voting nay. BONLENDER
MOVED AND EDLER SECONDED TO APPROVE AS PRESENTED IN THE WRAP UP
DOCUMENT. The motion failed by a 4 -2 roll call vote; Johnson, Lover, Whitman, Cawley
voting nay. The item was deferred to the Business Meeting to be held this evening.
➢ Yakima - Morelia Sister City Association; Economic Development Fund, $50,000,
budgeted.
WHITMAN MOVED AND BONLENDER SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
➢ Committee for Downtown Yakima (request for maintenance assistance); CBD Capital
Improvement Fund, $50,000, budgeted. •
JOHNSON MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
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DECEMBER 4, 2007 — BUDGET WRAP UP
➢ Allied Arts Arts Van; General Fund, $5,333, deleted.
JOHNSON MOVED AND CAWLEY SECONDED TO RESTORE THIS ITEM TO THE
BUDGET. The motion carried by unanimous voice vote.
➢ Retired Senior Volunteer Program (RSVP); Parks and Recreation Fund $3,000, In -kind
$2,000, deleted.
CAWLEY MOVED AND BONLENDER SECONDED TO RESTORE THIS ITEM TO THE
BUDGET. The motion carried by unanimous voice vote.
➢ Seasons Music Festival — Music education program for high school students (one time
request); Parks and Recreation Fund, $8,000, unbudgeted.
JOHNSON MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
➢ Citizens for Safe Yakima Valley Communities; General Fund, $20,000, unbudgeted.
JOHNSON MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by
unanimous roll call vote.
Intergovernmental Agencies
➢ Clean Air Authority Assessment; General Fund, 2008 total $22,062, budgeted.
LOVER MOVED AND JOHNSON SECONDED TO APPROVE. The motion carried by
unanimous roll call vote.
➢ Yakima County Emergency Management Assessment; General Fund, 2008 total
$57,212, budgeted.
WHITMAN MOVED AND BONLENDER SECONDED TO APPROVE. The motion failed by
a 3 -3 vote; Cawley, Johnson, and Lover voting nay. The item will be reviewed again during
the evening's business meeting.
➢ Yakima Valley Conference of Governments (COG) Membership Assessment; General
Fund, 2008 total $45,581, budgeted.
Council approved the assessment at their 11/20/07 meeting.
II. CITY MANAGEMENT
Purchasing
➢ NIGP Joint City /County Purchasing Assessment (one -time request); General fund
$17,000, unbudgeted.
WHITMAN MOVED AND LOVER SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
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DECEMBER 4, 2007 — BUDGET WRAP UP
Wastewater /Pre- Treatment
A (a) Cost of service and rate study. Retail Rates: 2008 — 3.5 %, 2009 — 3.5 %, 2010 —
3.5%, Strong waste charge modified from 10% to 7% for three years, budgeted.
(b) Wastewater connection charge study
Bi- monthly Wastewater rate charges paid by customers of the Wastewater Division
Revenue: 2008- $424,200; 2009 - $439,000; 2010 - $454,000, budgeted.
JOHNSON MOVED AND BONLENDER SECONDED TO APPROVE (A) AND (B).
Council Member Lover discussed a possible amendment to (A) to help support attracting
new businesses. LOVER MOVED AND CAWLEY SECONDED TO REDUCE THE
STRONG WASTE CHARGE IN (A) TO 5 %. The motion failed by a 4 -2 roll call vote;
Bonlender, Edler, Johnson and Whitman voting nay. The question was called for a vote
on the original motion. The motion carried by unanimous roll call vote.
A Revenue Bond for future capital improvements,& increased capacity; Revenue Bond —
funded from existing rates with maturity of current bond, $5,500,000, budgeted.
JOHNSON MOVED AND LOVER SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
Water /Irriqation
A Currently approved rate increase:
2008 -3.5 %, 2009 -3.5%
Proposed: Cost of service and rate study for Water operating and capital
improvements:
a) 3.5% in years 2008 & 2009, 8.5% in years 2010 -2012
b) 3.5% in 2008, 5% in 2009, 7.5% in 2010 -2012
c) 5.5% per year, 2008 -2012
Adjustments to installation fees for 3 /4" & 1" new water services
JOHNSON MOVED AND BONLENDER SECONDED TO APPROVE OPTION C. The
motion carried by unanimous voice vote.
III. MUNICIPAL COURT — None
IV. FINANCE
Financial Services
A Finance Department reorganization; General fund ($2,600), Utility Services $37,769, ONDS
($49,240), net savings ($14,071)
I. Re -align personnel; ONDS ($40,771), budgeted
II. Reprioritize work; $8,300, budgeted
111. Upgrade position; $5,000, budgeted
IV. Consolidate positions; $13,400, recommend implementation in 2009
WHITMAN MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
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DECEMBER 4, 2007 — BUDGET WRAP UP
Information Systems /Legal
> Implement an e -mail management and archiving system to facilitate data collection for
public disclosure requests; 2008 Risk Mgmt Fund $45,000, 2009 Info Systems General
Fund $6,500, budgeted.
CAWLEY MOVED AND BONLENDER SECONDED TO APPROVE. The motion carried
by unanimous voice vote.
V. COMMUNITY AND ECONOMIC DEVELOPMENT
Codes
> Add one Code Inspector position and related equipment /supplies ($88,000); General
Fund, increased permit revenue from new construction and annexations, budgeted.
BONLENDER MOVED AND WHITMAN SECONDED TO APPROVE. The motion carried
by 5 -1 roll call vote; Cawley voting nay.
> Increase Humane Society service fee by 10% to adequately support operations;
General Fund, 2008 total $62,878, budgeted.
BONLENDER MOVED AND WHITMAN SECONDED TO APPROVE. The motion carried
by unanimous voice vote.
> Implement fee for Fire inspections. Less administration costs for billing a new
program. General Fund — new revenue, Net increased revenue $172,750, unbudgeted.
WHITMAN MOVED AND EDLER SECONDED TO APPROVE. Following discussion,
BONLENDER MOVED TO AMEND THE FEE TO $25. The motion died for lack of a
second. WHITMAN MOVED TO AMEND THE MOTION BY REMOVING THE
CONNECTION TO CPI. The motion died for lack of a second. The question was called
for a vote on the original motion. The motion failed; 4 -2, Bonlender, Cawley, Johnson,
Lover voting nay.
ONDS (Office of Neighborhood Development)
> Extend funding for SE Community Center an additional 2 years - $75,000 annually;
Community Development Block Grant, $75,000 2008 & 2009, budgeted.
CAWLEY MOVED TO FUND ONLY ONE YEAR. The motion died for lack of a second.
BONLENDER MOVED AND WHITMAN SECONDED TO APPROVE. City Manager Zais
explained that the budget was out of sync with the contract; 5 years versus 3 years.
Council Member Lover suggested removing the five and ten year renewal options in the
contract. It was suggested this be brought up when the contract is scheduled to be
rewritten. The question was called for a vote on the motion. The motion carried by
unanimous voice vote.
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DECEMBER 4, 2007 — BUDGET WRAP UP
Tourism Promotion/Yakima Convention Center
➢ Increase annual management fee from $565,000 to $645,000 to adequately support
Center operations; Tourist promotion operating fund Hotel /Motel tax event revenue,
$80,000, budgeted.
➢ Increase support to the Sports Commission from $45,000 to $46,500; Tourist promotion
operating fund Hotel /Motel tax; $1,500, budgeted.
➢ Complete "Branding" process to enhance regional promotion efforts; Tourist promotion
operating fund, $30,000, Tourism promotion area fund, $30,000, budgeted.
➢ Market and Economic Feasibility Study; Expansion Plan, Convention Center capital, •
$26,000, budgeted.
➢ Allocation of Tourism Promotion Area revenue; Tourism promotion area, $370,000,
budgeted.
McCLURE MOVED AND BONLENDER SECONDED TO APPROVE. The motion carried
by unanimous voice vote.
Capitol Theatre
➢ Increase annual management fee from $175,000 to $197,000; Capitol Theatre
operating fund, Hote /Motel tax, cable utility tax, $22,000„ budgeted.
➢ Capitol Theatre Phase 2 Expansion, 2008 preliminary work; Capitol Theatre
construction fund: Capitol Theatre reserve interfund loan ($500,000), Private donations
($250,000) PFD transfer from state sales tax credit ($416,000)
➢ 2009 bond issue to be repaid by PFD sales tax credit; Bond - $7,000,000, other
revenue (such as donations /grants /interest - $1,400,000); Project total Phase 2 -
$9,500,000; budgeted.
WHITMAN MOVED AND LOVER SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
Engineering
➢ Councilmatic bonds for critical street projects:
a) Grind and overlay 3 Ave. Mead - Chestnut; $1,400,000
b) Pedestrian crossing safety enhancements, S. 16 Ave & Bonnie Doone; N 4 St
& MLK Blvd); $300,000
c) Add traffic signal 66 & Summitview; $350,000
Arterial Street Fund, debt service split between REET 1 & 2; budgeted.
➢ Nob Hill overpass repair; Arterial Street Fund, 50% REET 2 Fund cash reserves, 50%
grant or PWTF Loan, $1,000,000, budgeted.
CAWLEY MOVED AND LOVER SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
Stormwater
➢ Implement stormwater operating and capital improvement program; Rate options per
ERU; Option C selected by Council at 11/20/07 meeting; Graduated rate - 2008 -$22,
2009 -$35; Stormwater utility fee.
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DECEMBER 4, 2007 — BUDGET WRAP UP
VI. POLICE
Add one Deputy Police Chief position effective 7/1/08; General Fund, 2008 $65,000,
Equipment $120,000, budgeted.
CAWLEY MOVED AND WHITMAN SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
VII. FIRE
Capital
➢ New ladder truck; Fire capital fund, $1,000,000, budgeted.
> Sale of Race Street Fire Station; Revenue to Fire Capital, $150,000, unbudgeted.
WHITMAN MOVED AND BONLENDER SECONDED TO APPROVE. The motion carried
by unanimous voice vote.
Public Safety Communications
• Add one Public Safety Dispatcher position (9 mos.); Public safety communications fund,
0.3% Criminal justice sales tax, 2008 - $45,000 personnel, $5,000 non personnel,
budgeted.
JOHNSON MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
VIII. PUBLIC WORKS
Transit
• Purchase 3 heavy -duty, low -floor buses; Transit capital reserves, $1,330,000,
budgeted.
WHITMAN MOVED AND BONLENDER SECONDED TO APPROVE. The motion carried
by unanimous voice vote.
> Add part -time DAII position (50% FTE); Transit Operating, $21,000, budgeted.
BONLENDER MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by a
5 -1 roll call vote; Lover voting nay.
• Transit bus fare fuel surcharge; Transit fare box, net revenue $30,000; unbudgeted.
BONLENDER MOVED AND EDLER SECONDED TO APPROVE. City Manager Zais
clarified that the motion is to initiate the federal public hearing process to bring it back for the
next Council's action. Council Member Cawley spoke against the increase. The motion
carried by a 5 -1 roll call vote; Cawley voting nay.
• Purchase 10 vans for Dial -a -Ride program; Transit capital reserves state grant, Net cost
$56,000, budgeted.
CAWLEY MOVED AND BONLENDER SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
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DECEMBER 4, 2007 — BUDGET WRAP UP
Refuse
• 5% rate increase to cover increased operating expenses; bi- monthly charges paid by
customers, Revenue 2008 - $154,950, 2009 - $200,000; budgeted.
BONLENDER MOVED AND JOHNSON SECONDED TO APPROVE. The motion carried
by unanimous voice vote.
• 1.5% rate increase to fund Fall Leaf program; 2008 revenue $48,000, bi- monthly
charges paid by customers, unbudgeted.
BONLENDER MOVED AND EDLER SECONDED TO APPROVE. Council Member Cawley
asked what happens if it fails, does the fall leaf program go away? City Manager Zais
explained that if it failed, we would have to reallocate those costs back to the Street budget,
or not continue the function. Council members discussed the pros and cons of the proposal.
LOVER MOVED AND WHITMAN SECONDED TO AMEND THE MOTION TO APPROVE
FOR ONE YEAR AND DISCONTINUE IT FOLLOWING THAT YEAR. The motion failed
by a 3 -3 roll call vote; Johnson, Bonlender, Cawley voting nay. The original motion passed
by a 4 -2 roll call vote; Lover and Whitman voting nay.
• .5% rate increase to administer Dial -A- Dumpster program; bi- monthly charges paid by
customers, 2008 cost $15,600, Unbudgeted.
BONLENDER MOVED TO APPROVE. The motion died for lack of a second.
NOTE: Following the last item discussed on the wrap up document, CAWLEY MOVED
AND BONLENDER SECONDED TO APPROVE THE DIAL -A- DUMPSTER PROGRAM.
After discussion, the motion failed by 4 -2 roll call vote; Edler, Lover, Johnson and Whitman
voting nay.
Equipment rental
• Install vehicle wash fluid containment system; Environmental fund, $100,000, budgeted.
LOVER MOVED AND CAWLEY SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
Parks and Recreation
• Parks staff working with special task force reviewing options to eliminate financial
subsidy for Fisher Golf Course; Parks fund.
LOVER MOVED AND WHITMAN SECONDED TO APPROVE. The motion carried by
unanimous voice vote.
• Increase certain fees and charges for Parks and Recreation; Parks fund, Revenue
$22,000; budgeted.
By request, Denise Nichols, Parks and Recreation Manager, reviewed the increasing fees.
EDLER MOVED AND BONLENDER SECONDED TO APPROVE. Following discussion,
the motion carried by a 4 -2 roll call vote; Cawley and Whitman voting nay.
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DECEMBER 4, 2007 — BUDGET WRAP UP
Harmon Center improvement — parking lot reconfiguration; Parks & Recreation capital,
$35,000; budgeted.
CAWLEY MOVED AND BONLENDER SECONDED TO APPROVE. Following discussion, the
motion carried by a 5 -1 roll call vote; Lover voting nay.
Council Member Johnson raised the issue of discontinuing the "Movies in the Park"
program. Could costs for the program be reduced by volunteer help? Mrs. Nichols
explained the requirements of staffing due to the size and cost of the screen, as well as the
copyright cost for the movies. JOHNSON MOVED AND CAWLEY SECONDED TO
RESTORE THIS ITEM ($5,000) INTO THE PARKS BUDGET IN THE HOPES THAT A
PORTION OF IT COULD BE FUNDED PRIVATELY. The motion carried by 5 -1 voice vote,
Whitman voting nay. Mrs. Nichols said that staff would look for sponsorships.
Cemetery
20% increase fee schedule for Tahoma Cemetery; Cemetery funds; Revenue $20,000;
budgeted.
JOHNSON MOVED AND BONLENDER SECONDED TO APPROVE, AND TO ADD A
REQUEST TO OUR LEGISLATIVE PRIORITIES THAT WOULD ALLOW US TO
INCREASE THE PERCENTAGE WE CAN USE BEYOND JUST THE INTEREST ON THE
PERPETUAL CARE MONIES. The motion carried by unanimous voice vote.
WHITMAN MOVED AND CAWLEY SECONDED TO DIRECT STAFF TO PREPARE THE
FINAL BUDGET ORDINANCE FOR 2008 INCORPORATING TODAY'S POLICY
DECISIONS, AND PREPARE THE LEGISLATION TO ENACT THE ADJUSTED RATES.
The motion carried by unanimous voice vote.
3. Adjournment
CAWLEY MOVED AND LOVER SECONDED TO ADJOURN TO EXECUTIVE
SESSION AT 5:00 P.M. FOLLOWED BY THE REGULAR BUSINESS MEETING.
The motion carried by unanimous voice vote. The meeting adjourned at 11:08 a.m.
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Minutes prepared by Linda Watkins. A CD and DVD of this meeting are available in the City Clerk's Office
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