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HomeMy WebLinkAbout12/13/1988 Business Meeting 064 DECEMBER 13, 1988 • BUSINESS MEETING • 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 AAD /1 • 065 DECEMBER I '�1� J 3 1988 NO 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 AAD /2 • 0 6 6 DECEMBER 13, 1988 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 AAD /3 DECEMBERJIi 1988 0 6 j 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. • * 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. .. • 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. AAD /4 0 6 8 DECEMBER 13, 1988 • • 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. AAD /5 DECEMBER 13;''"1988 0 6 3 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. • 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) • • • • AAD /6