HomeMy WebLinkAbout12/13/1988 Business Meeting 064
DECEMBER 13, 1988
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BUSINESS MEETING
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1. ROLL CALL
The City Council met in session on this date at .2:00 P.M. in the
Council _Chambers of City Hall, Yakima, Washington. Mayor Pat
Berndt, presiding, Council members Clarence Barnett, Lynn.Buchanan,
Lynn Carmichael, Jerry Foy and Bernard Sims present on roll call.
Council member Henry Beauchamp absent and excused. City Manager
Zais, City Attorney Vanek, City Clerk Roberts and Deputy City Clerk
Toney also present.
2. INVOCATION
The Pledge of Allegiance was led by Council member Carmichael.
3. OPEN DISCUSSION FOR THE GOOD OF THE ORDER
Dave Schneider accepted a proclamation read by Mayor Berndt
proclaiming the week. of December 11 -17, 1988, as Drug and Drunk
Driving Awareness Week.
Mayor Berndt referred to a letter from Governor Gardner regarding
the grant process and encouraged community leaders to attend the
meeting scheduled for December 21, 1988. She indicated members of
the Drug Coalition will also be present.
4. CONSENT AGENDA
Mayor Berndt referred to the items placed on the Consent Agenda,
questioning whether there were any additions or deletions from
either Council members or citizens present. It was the consensus
of the Council to add It No. 5 and remove Items Nos. 10, 11 and
12. The City Clerk then read the Consent Agenda items, including
resolutions and ordinances by title. It was MOVED by
Carmichael, seconded by Sims, that the Consent Agenda, as read, be
passed. Unanimously carried by roll call vote. Beauchamp
absent. (Subsequent paragraphs preceded by an asterisk ( *)
indicate items on the Consent Agenda handled under one motion
without further discussion.)
* 5. APPROVAL OF MINUTES OF THE SPECIAL COUNCIL MEETING OF NOVEMBER 8, .
1988
The Council minutes of the special meeting of November 8, 1988 were
approved, having been duly certified accurate by two Council
members and no one present wishing to, have said minutes read
publicly.
6. AUDIENCE PARTICIPATION
None
7. CONSIDERATION OF SUBMISSION OF LEGISLATION TO ADOPT COMPREHENSIVE
SEWER PLAN AND PROPOSED SEWER RATES AS RECOMMENDED IN THE SEWER
FINANCING PLAN FOR 12/20/88 (SEE 11/22/88 AGENDA STATEMENT)
Mayor Berndt stated this is not a public hearing, but rather
. discussion and action to be taken on the proposed sewer rates as
recommended in the Sewer Financing Plan. Staff having no opening
cornments to make, Mayor Berndt acknowledged that Larry Mathews had
requested to address Council regarding this item. Larry Mathews,
805 South 17th Avenue, stated there were several alternatives given
in the report and asked what action Council will be taking on this
Comprehensive Sewer Plan and the proposed sewer rates. Mr. Mathews
was informed.that Council has not yet discussed the issue today, it
is unknown what action will be taken until they have done so. Mr.
Mathews stated he is not opposed to the 16% increase, however, that
is contingent upon the fact that the strong waste and industrial
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treatment costs be collected in full acid that city sewer service
not be extended into the County areas at the expense of the City
taxpayers.
Richard Smith, 314 North 2nd Street, expressed concern about the
amount of, and the need for the sewer increase, stating he was
surprised to see the request of 2.0% to 2.5% debt service coverage
ratio. He commented that he feels this is excessive as he knows
of no bonding company that has ever required a debt service ratio
of over 1.5%. He referred to Proposal #1 of 16 %, 16% and 8.7 %,
stating the actual debt service ratio projected for 1989 is 2.84 -
a higher ratio requested by staff.' He stated if the debt ratio is
1:5 rather than the 2.85, that represents'a savings to the citizens
of about $897,000 next year. In 1990, if the service debt ratio is
1.5 instead of the 3.11 that is requested, approximately 1 million
dollars will be saved by the taxpayers. Mr. Smith stated this is
not the time to do more than adequate financing requested the
Council consider making this a one year allocation of 16 %, or
perhaps something less, and do not make . a further commitment for
one more year. He stated a substantial part of the money being
requested,is for personnel and commented those employees will
not all be hired within next year.
Council member Barnett pointed out to Mr. Smith that the 8.7% he
referred to on the chart has been increased to 10.5 %, i.e. it
should read 16 %, 16% .and 10.5%.
City Manager'Zais responded there is a minimum requirement of debt
service ratio of 1.4 in the sewer and water funds, which is a
combined debt ratio, and the City`has never been that low. He
said the City has been very conscious of maintaining a very solid
debt ratio for purposes of marketing the bonds, maintaining the
bond rating of the City and for deriving excellent interest rates
.afforded the City by virtue of careful management over the system
and the debt service that has been maintained. Mr. Zais stated the
Utility Rate Advisory Board has advised and recommended that the
City maintain at least 2.0, or greater,•for the water and sewer
utilities. He said the bond counsel has argued that that is a very
critical ratio to maintain and that is the reason' it has been
recommended for continuance. He added that federal funding has
been declining over the past years from a lever of 90% in the
late '70s to 75% in the early '80s and now to 55% in the late '80s
and speculation is that it will be less than that depending on what
happens in the next congress. He said the City is on the waiting
list as a priority for additional funding to help offset a portion
of these newly mandated requirements which total over $24 million
dollars, or well over 90% of what is proposed and recommended in
the plan that is mandated upon the City by state and federal
authorities to fund this ambitious program and meet the
requirements of the NPDES permit and other new changes that'emanate
from the Clean Water Act. This requires a major investment of City
funds and staff believes it is wise and prudent fiscal management
of the system to maintain a reserve capacity to meet'unforeseen
needs for grant proceeds which may deem certain contracts and
projects ineligible in the future.
. Mr. Smith suggested Council preserve their options and cautioned
them not to make a commitment that is irretrievable. Mr. Zais
responded that he does not see how it is irretrievable in any
event. Mr. Smith retorted "As a political matter, I would think
it is irretrievable." Mayor Berndt asked if the funds must remain
in the Sewer Fund and City Attorney Vanek stated he does not
know the answer to that. Chris Waarvick stated'the issue of the
elevated debt service ratio becomes as an artifact in trying to
maintain reserve levels as a benchmark through the study. If the
City were to utilize the reserves more severely than requested, by
the end of the four to five year study period the rate increases
will be far beyond what we have anticipated. He stated one of
staff's goals is to make sure the base rate is not totally eroded
at the end of the, study period for the financing plan. Again,
,the issue of the two year decision that is 'before the Council
today, is significant in that there are a number of requirements
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involved in the Federal EPA Grant Assistance Program. He said
staff is currently working on recommendations for the Facilities
Plan Update, the Comprehensive Sewer Plan, and one of the
requirements to qualify for the four to five million dollars of
anticipated grant money is that a Financing Plan must be in place.
Mr. Waarvick stated by March of 1989 staff must have a Financing
Plan in place for the recommendations for the Sewer Division to
qualify for federal grant money. Mr. Zais commented about Mr.
Smith's point regarding what happens to reserves after the
bonds are paid off, stating if Mr. Smith has knowledge of some
legal option in the Municipal Code that City Management is not
aware of, that is news to them, because the funds have always been
segregated and identified for the Sewer Division or Water Division,
as the case may be. He added if there have been reserves left over
the years from paying off bonds, they have been reapplied to other
Water /Sewer capital projects; they have not been. diverted to the
General Fund. John Hanson interjected that these are Utility
Revenue Bonds, and as such, any revenue generated from revenue
bonds must remain in the Sewer Operating Fund or the Sewer Capital
Fund. Mr. Hanson supported Mr. Zais' comments about the Utility
Rate Advisory Board and the bond counsel advising that the reserve
levels be maintained at 2.0% for purpose of selling the bonds,
however, he added that that is not specifically what is driving the
rate adjustments in this case. It was MOVED by Sims, seconded by
Carmichael, that Council direct the preparation of the legislation
for final adoption of the Comprehensive Sewer Plan. Unanimously
carried by voice vote. It was' MOVED by Sims, seconded by
Carmichael, to accept the 16% increase for both years, 1989 and
1990. Carried by 5-2 voice vote. Barnett and Foy voting nay;
Beauchamp absent. It was MOVED by Sims, seconded by Carmichael, to
adjust the septage waste charge from 2.6 cents to 3.1 cents per
gallon, and together with the adjustment of the existing Capital
Cost Recovery Charge (CCRC) to reflect actual construction costs.
Unanimously carried by voice vote. Beauchamp absent. Council
member Barnett expressed concern that the agenda cover sheet did
not contain any recommendations by the Utility Rate Advisory Board
regarding these issue. Mr. Hanson stated the Utility Rate Advisory
Board met several times during the summer and it was the consensus
of the URAB to support these recommendations. Council member Foy
stated he does not believe the URAB met and discussed all of the
issues that Council has just taken action on, specifically the in
lieu of tax. Mr. Hanson acknowledge that the URAB had not
discussed the in lieu of tax. This concluded discussion on the
Comprehensive Sewer Plan.
8. CONSIDERATION OF MANAGEMENT COMPENSATION PROPOSAL FOR 1989
City Manager Zais made a few brief introductory comments regarding
this agenda item, stating the general increase requested for public
safety and general management of the City is a 2% salary adjustment
beginning January 1, followed by another 2% July 1, 1989. He said
the annual cost would be approximately 3.02 %, or nearly $60,000 for
all thirty -eight members of management. Mayor Berndt stated Larry
Mathews had requested an opportunity to speak to this issue and was
asked to do so at this time.
Larry Mathews, 805 South 17th Avenue, spoke against the proposed
increase of approximately $1,500 per management person. He stated
the City is facing a depression, federal funds are being cut back
and suggested possibly a freeze factor is in order.
It was MOVED by Buchanan, seconded by Sims, to accept the report
recommendations concerning management compensation for 1989 and
- authorize preparation of legislation amending the pay plan for
enactment on December 20, 1988. Motion failed by 3 -3 roll call
vote. Barnett, Berndt, and Foy voting nay; Beauchamp absent.
Mayor Berndt passed the gavel to Mayor Pro -Tem Buchanan and
offered an alternative motion.. It was MOVED by Berndt, seconded by
Sims, to authorize preparation of legislation amending the pay plan
for a flat 3% increase rather than the two and two, effective
January 1, 1989. Under discussion, Mayor Berndt explained that
although in the long run the cost to the City the first year is the
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same,'the cost in future years is less.,, She stated when Council is
asking citizens to consider additional taxes, it is in the best
interest of the Council to be prudent. She added it is also true
that the majority of the rest of the workers are receiving larger
percentage increases due to strong bargaining units, and if
Management does not. receive any raise, the compression factor
creates a situation where management does- not receive adequate
compensation for their added responsibility and work' time. The
question was called for a vote on the motion. Carried by a 5 -2
roll call vote. Barnett and Foy voting nay;'Beauchamp absent.
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* 9. CONSIDERATION OF RESOLUTION AUTHORIZING AN AMENDMENT TO THE LEGAL
SERVICES AGREEMENT WITH DON SCHUSSLER
RESOLUTION NO. D -5526, A RESOLUTION authorizing the City Manager to
• execute an amendment to a Legal Services Contract. •
10. CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF TRAINING
AGREEMENT WITH GREEN RIVER COMMUNITY COLLEGE
Council member Barnett referred to the last page of the agreement,
. asking if the following clause is legally valid: "that his service
is that of a volunteer and shall not be the basis for a time loss
claim in the event of injury or temporary or permanent disability,
or for a wrongful death claim, or for any other claim against the
• City of Yakima or its officers, employees, and agents in the event
of his injury or death." City Attorney Vanek stated this was
discussed with the State Attorney General's Office and determined
that the agreement has already been signed by the Green River
Community College and the individual is responsible for his own
medical payments either through the State or the Community College.
• Resolution .No. .5527 having been read by title, it was MOVED by
Carmichael, seconded by Sims, that the resolution.. .be adopted.
Unanimously carried by roll call vote. Beauchamp absent. ..
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RESOLUTION NO. D -5527, A RESOLUTION authorizing and directing the
City Manager and the City Clerk of the City of Yakima to execute an
Affiliation Agreement with Mike Shea and Green River Community
College for training in the City water treatment facility.
11. CONSIDERATION OF RESOLUTION INITIATING REZONE OF PROPERTY. IN THE
VICINITY OF WEST WALNUT
Associate Planner Larry Lehman was present to.respond to
member Barnett's concerns about this issue. Mr. Barnett stated
there are only four or five. businesses in the entire area, all
located on West Walnut between 7th Avenue and 9th Avenue. He
stated the rest of the area is comprised of a church, five
apartments, several duplexes and four- plexes with the balance
being single family. He said he personally believes the proposal
is not receiving the full range of urban services and the homes are
primarily single family and he personally feels this is an
unreasonable encroachment . into the less expensive .residential
• property area which is the type of area that people need in ,order
to own homes. He summarized by stating the rezone does not meet
one, if not two, of the intents of the Urban Area Zoning Ordinance.
Mayor Berndt asked Mr. Lehman what the original request was and he
responded .the original request was for the single lot at the
southeast corner of South 9th Avenue and Walnut. He said staff
felt that this single lot was probably insufficient to properly
develop and that it created the appearance of spot zoning. He
stated there had been indications from other property owners in the
area that the City consider expanding the area to be rezoned, and
that it be enlarged as is presented today., Following further
discussion, and the resolution having been read by title, it was
MOVED by Buchanan, seconded by Sims, that Resolution be adopted.
• Motion failed by 5 -1 roll call vote. Barnett, Berndt, Carmichael,
Foy and Sims voting nay. Beauchamp absent. Mayor Berndt stated
• she would like staff to bring back the original recommendation for
reconsideration. This was the consensus of the Council.
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12. CONSIDERATION OF RESOLUTION GRANTING AN EASEMENT ON CHESTERLEY PARK
TO PACIFIC POWER AND LIGHT
Council member Carmichael referred to the map included in the
Council packet and asked where the power line is in relationship to
Chesterley Park? She stated the map is inadequate and requested a
more complete map be submitted with detailed information as to
where the power lines, phone lines, etc. will be located. It was
MOVED by Carmichael, seconded by Buchanan, that this item be
delayed one week until sufficient information can be brought back
to the Council regarding the location of all of the utility
easements for Chesterley Park. Unanimously carried by voice vote.
Beauchamp absent.
* 13. APPROVAL OF FINAL. CONTRACT PAYMENTS (STANDARD MOTION. V -B, ACCEPT
PROJECT AND APPROVE FINAL PAYMENT):
A. WEST NOB HILL BOULEVARD ARTERIAL STREET IMPROVEMENTS
The report from the City Engineer dated December 12, 1988, with
respect to the completion of the work on the Nob Hill Boulevard
Arterial Street Improvements Project, performed by Superior Asphalt
& Concrete, was approved, the work accepted and payment of the
final estimates as therein set forth was authorized.
B. STORM DRAINAGE CONSTRUCTION NO. 2
The report from the City Engineer dated November 14, 1988, with
respect to the completion of the work on the Storm Drainage
Construction No. 2: Mead Ave. /Tancara, performed by DeBlasio
Construction, was approved, the work accepted and payment of the
final estimates as therein set forth was authorized.
*14. APPROVAL OF NOVEMBER 1988 BUDGET REPORT (ACCEPT REPORT)
The November 1988 Budget report was accepted.
* 15. CONSIDERATION OF AN ORDINANCE APPROPRIATING FUNDS. FOR TRANSIT AND
EQUIPMENT RENTAL EXTENDED HOLIDAY SEASON SERVICE (SECOND READING)
An Ordinance appropriating funds for Transit and Equipment Rental
extended holiday season service, having been read by title only at
the November 22, 1988 meeting, was brought before the Council for a
second reading.
ORDINANCE NO. 3140, AN ORDINANCE amending the 1988 Budget for the
City of Yakima; making appropriations from unappropriated fund
balances within the 462- Transit and 551- Equipment Rental funds for
expenditure during .1988 for extended Transit Service during the
holidays.
*16. CONSIDERATION OF ORDINANCES MAKING FINAL APPROPRIATIONS AND
AMENDING THE 1988 BUDGET (FIRST READINGS):
A. AN ORDINANCE APPROPRIATING FUNDS INTO THE IRRIGATION FUND
An Ordinance appropriating funds into the Irrigation Fund, having
been read by title only at this meeting, was laid on the table for
one week or until December 20, 1988.
B. AN ORDINANCE AMENDING THE HEALTH BENEFIT RESERVE FUND
An Ordinance amending the Health Benefit Reserve Fund, having been
read by title only at this meeting, was laid on the table for one
week or until December 20, 1988.
C. AN ORDINANCE APPROPRIATING FUNDS FOR WORKER'S COMPENSATION
RESERVE FUND
An Ordinance appropriating funds for Worker's Compensation Reserve
Fund, having been read by title only at this meeting, was laid on
the table for one week or until December 20, 1988.
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17. OTHER BUSINESS
•Council member Barnett commented that under the Rules and
Procedures of the City Council, if a question or proposition
submitted to Council has several points, any member of the Council
may have the issue divided and considered separately. Council
member, Foy noted such action does not require a motion; all that is
necessary is that it be requested by a Council member.
'Information Items:
Items of information supplied to Council were: Memo from Code
Administration Manager responding to citizen complaint about
business at 1019 South 26th Avenue. 12/8/88; Letter from Yakima
Air Terminal Board to Acting Regional Director for National Weather
Service encouraging retention of 24 hour service at Yakima station.
12/2/88; Memo from Director of Public Works and Traffic Engineer
regarding Preliminary Report - Roadway Situation at 201 No. 7th
Avenue. 12/9/88; Memorandum from City Attorney regarding Damage
Claims Referred to Insurance Company. 12/5/88; Minutes of the
November 16, 1988 Safety Committee meeting; and Permits Center
Report for November 1988.
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18. ADJOURNMENT
There •being no further business to come before the Council, it was
MOVED by Beauchamp, seconded by Sims, that this meeting be
'adjourned at the hour of 3:03 p.m. Unanimously carried by, voice
. vote. Beauchamp absent.
READ AND CERTIFIED ACCURATE BY
• COU CIL BER DATE
ATTEST: COUNCILIMEMBER DATE
' GaZ
CITY CLERK MAYOR
(Minutes prepared by Deputy City Clerk, Barbara J. Toney, CMC)
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