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HomeMy WebLinkAbout02/14/1989 Adjourned Meeting loo • • FEBRUARY 14, 1989 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, Henry Beauchamp, Lynn Buchanan, Lynn Carmichael, and Jerry Foy present on roll call. Council member Bernard Sims absent and excused. City Manager Zais, City Attorney Vanek, City Clerk Roberts and Deputy City Clerk Toney also present. 2. INVOCATION The Invocation was given by Council member Beauchamp. • 3. OPEN DISCUSSION FOR THE GOOD OF THE ORDER • Council -Member Carmichael stated' She would like to clarify the issue of the letter received by all of the Council members from Lorne House, opposing formation of a relationship between the City of Yakima and the Soviet Union. Mrs. Carmichael indicated this is not a sister city relationship with the City of Yakima, but rather • Yakima County, therefore, the City will not be conducting any . .'public hearing on the issue; if there is a hearing; it should be with the County Commissioners. - • 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 that the minutes of December 13, 20, 1988 and January 3, 1989, be tabled for one week. The City Clerk then read the Consent Agenda items, including resolutions and ordinances by title. IT WAS - MOVED BY CARMICHAEL, SECONDED BY_BUCHANAN., THAT THE CONSENT .AGENDA;.,: AS .READ,:':BE' PASSED. Unanimously carried by roll call vote. (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 COUNCIL MEETINGS OF DECEMBER 6, 13 AND 20, 1988 AND JANUARY 3, 1989 The Council minutes of December 6, 1988 were approved, having been duly certified accurate by two Council members and no one present wishing to have said minutes read publicly. The minutes of December 13, 20, 1988 and January 3, 1989 were tabled for one week. 6. AUDIENCE PARTICIPATION Charles Kriz, 5708 Bitterroot Lane, addressed Council regarding drug concerns, and the need for military help to resolve this matter. He also referred to comments made last week by Phil Pleasant in which Mr. Pleasant stated the City needs to concentrate on providing job opportunities for minorities rather than . incarcerating them. 7. RECONSIDERATION OF REPORT FROM LEGAL DEPARTMENT REGARDING PROPOSED LEGISLATION ON UTILITY TAXES, INCLUDING INTRASTATE LONG DISTANCE TAX CHARGES (CONTINUED FROM FEBRUARY 7, 1989) City Manager Zais,commented on the materials supplied to Council regarding the above mentioned items. He reviewed the memorandum from the Director of Finance and Budget regarding the impact of the choices presented today. Mr. Zais stated Table 1 illustrates what happens if the franchise relationship is not changed with U.S. West Communications, and proceed with raising the limitation on utility tax from $500 to $3,000 as Council previously directed and AAD /1 101 FEBRUARY 14, 1989 then extend the tax as allowed by the law. He stated Table 1 does not allow the City to extend a 6% tax to the other companies that provide intrastate toll charges, and this results in .less revenue returns to the City. Table 1 shows that the City would.be applying a tax of 4.4% rather than 6 %, and does not accomplish the revenue objectives that Council was seeking when direction was given to implement the intrastate toll, and this is further affected by the relationship with U.S. West on the franchise. Mr. Zais stated Table 2 allows the City to impose the full 6% tax permissible under state law, to each of the companies that provide long distance telephone service within the City limits. He pointed out that all of the revenues are not listed because not all of the data has been received from the long distance carriers. He stated the franchises with Pacific Power and Light and Cascade Natural Gas are not impacted by this and would remain in effect. Mr. Zais stated the franchise with U.S. West Communications is altered to the degree that the fee becomes a form of tax, not to exceed the ramp down requirements of 6% by 1992. He explained that this shows the annual revenue return, in the case of U.S. West Communications, of an annual increase of $232,000 imposing the full 6% tax, that is to say the existing 4.4% together with the 1.6% of the franchise fee that would be allowed to raise us up to 6% in the total tax that we would allocate. And at the lower part of the chart, we would have a deduct of the franchise fee, down to the 0.4% percent level, subject to further rampdown and that would be ended by 1992. Mr. Zais said this plan would uphold the Charter and essentially maintain the same revenue base from the franchise fee to a franchise tax. He indicated the appropriate ordinance would have to be presented to Council for adoption, and would likely be prepared by the office of Preston, Thorgrimson. In the discussion that followed, Mayor Berndt stated she wished Council had more information on how much revenue would be generated by implementing the intrastate toll. Council member Foy stated that will not be known until the other long distance carriers have provided the data requested by staff. Larry Mathews, 805 South 17th Avenue, addressed Council protesting the presence of Council member Foy due to a conflict of interest in that it affects his business. Council member Foy responded he has a letter in file from the attorney general which refutes Mr. Mathews statement regarding a conflict of interest. Mr. Foy stated this letter has been reviewed by the City Manager and the City Attorney and Mr. Mathews is welcome to read it if he desires. Mr. Mathews stated he supports Option 1 because it is a better deal for the consumer and will have less impact than Option 2. Mr. Mathews continued stating Option 2 will immediately increase the phone tax from 4.4% to 6% with U.S. West Communications paying a 4.4% franchise fee. He added U.S. West will receive a 1.6% decrease and in 1990, under Option 2, U.S. West Communications will receive a 0.2% decrease, and in 1991 another 0.2% decrease. Mr. Mathews stated if the utility tax must be the same for all telephone businesses, therefore, it can only tax the other telephone businesses at 4.4 %. He stated he spoke with Pat Dutton, Consumer Representative in Olympia who told him that cancelling the franchise tax was a "bad deal for the consumer." Mr. Mathews stated Mrs. Dutton informed him that the authorized return on the investment of U.S. West Communications is from 9.4% to 10.5% and the last report from U.S. West Communications shows the actual return is 12.42 %, which indicates that the company is over earning. She also stated the return was probably understated because it is based on the good faith of U.S. West Communications and the Commission does not conduct audits on periodic reports. Mrs. Dutton stated eliminating the franchise fee would probably have little effect on the utility earnings, however, every little bit counts and they want to maximize their earnings. In the discussion that followed, Council member Carmichael stated it is important to charge a fee that is uniformly applied to all of the utilities being discussed. She pointed out that Council is not talking about changing. the City Charter; Council is simply talking about reducing the fee, not removing the ability to charge a franchise fee in the future. Council members Barnett and Beauchamp were in agreement with Council member Carmichael, adding it is time to take action on AAD /2 102 FEBRUARY 14, 1989 this matter or forget it. Following further comments, it was MOVED BY BARNETT .:BY .BEAUCHAMP:,.'THAT .:'STAFF '.BRING' IN THE - •APPROPRIATE LEGISLATION TAO ADOPT THE:.CONCEPTS .AND ;POINTS_ ENUMERATED IN TABLE 2,• Unanimously carried.by voice vote..Sims absent. *8. CONSIDERATION OF RESOLUTION ADOPTING A WATER COMPREHENSIVE PLAN RESOLUTION NO. D -5546, A RESOLUTION adopting the 1988 Water Canprehensive Plan with Appendices for the City of Yakima, Washington. * 9. CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT WITH DEPARTMENT OF LABOR AND INDUSTRIES FOR VOCATIONAL REHABILITATION TRAINING RESOLUTION NO. D -5547, A RESOLUTION authorizing and directing the City Manager and the City clerk of the City of Yakima to execute an On- the -Job Training Agreement with Howard Larson and representatives of the State of Washington for training in the City wastewater treatment facility. *10. CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF CANAL CROSSING AGREEMENT WITH COWICHE CANAL COMPANY FOR TIETON DRIVE PROJECT RESOLUTION NO. D -5548, A RESOLUTION authorizing and directing the City Manager and City Clerk of the City of Yakima to execute a Canal Crossing Agreement with the Naches - Cowiche Canal Company. * 11. CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF RENEWAL AGREEMENT WITH DEPARTMENT OF THE ARMY FOR UTILIZATION OF FIRING RANGE AT THE YAKIMA FIRING CENTER RESOLUTION NO. D -5549, A RESOLUTION authorizing and directing the City Manager and the City Clerk of the City of Yakima to execute an agreement with the Department of the Army for a license to utilize a firing range at the Yakima Firing Center. *12. SET DATE OF PUBLIC HEARING FOR WASTEWATER TREATMENT PLANT ANNEXATION FOR FEBRUARY 28, 1989 February 28, 1989 was the date set for a public hearing on the annexation of the Wastewater Treatment Plant property. *13. SET DATE OF PUBLIC MEETING ON WALNUT AVENUE /8TH AVENUE REZONE FOR FEBRUARY 21, 1989 February 21, 1989 was set as the date of public meeting on the rezone of property in the vicinity of Walnut and 8th Avenues. 14. OTHER BUSINESS Council member Foy announced that he will retire at the end of the year, fulfilling his four year term. He stated his intent in making this announcement is to allow those who might be interested in filing for his Council position time to prepare all of the necessary paper work. Regarding the issue of calling for bids for the City's legal advertiser, Council member Foy asked staff to research the possibility of the City's local television channel, YCTV, serving as the City's legal advertiser. Council member Barnett referred to the article in the morning paper regarding the possibility of the County receiving $500,000 for additional jail beds, he asked Chief Green if this will meet the City's needs. Chief Green responded, "the answer is no." He stated that this morning he spoke with Commissioner Tollefson who indicated the County Commissioners will sign the joint letter with the City Council requesting assistance from the state. AAD /3 FEBRUARY'14, 1989 • 103 Information items: Items • of information supplied to Council were: Memo from Water /Irrigation Superintendent regarding Recent Subzero Temperatures and Effects on the Water System. 2/10/89; New Vision newsletter, In Our Scope, February 1989; Memo from City Attorney regarding Damage Claims Referred to Insurance Company. 2/2/89;, Letter from State Building Code Council announcing appointment of Robert Shampine to serve on the Fire Protection Policy Board's Building and Fire Codes Workgroup. 1/27/89; Memo from Director of Department of Community' & Economic Development, regarding YCTV Monthly Report and Attachments: 2/8/89; Permit Report for month of January 1989; Downtown Group Meeting Notice /Agenda for February 15, 1989 meeting; and Minutes of the January 26,1989 Regional Planning Commission meeting. 15. EXECUTIVE SESSION REGARDING COLLECTIVE BARGAINING It was MOVED BY FOY, SECONDED BY CARMICHAEL, TO ADJOURN TO EXECUTIVE SESSION .. FOR THE PURPOSE ::..OF DISCUSSING COLLECTIVE BARGAINING., PENDING LITIGATION..AND"".PROPERTY .DISPOSITION; FOLLOWED :BY IMMEDIATE ..ADJOURNMENT: Unanimously carried by voice vote. • Berhdt -- temporarily absent; Sims absent. 16 . ADJOURNMENT Following the completion of the Executive Session, the meeting adjourned at the hour of 3:45 P.M. / 1 READ AND CERTIFIED ACCURATE BY , h� W COUNCIL' MEP�B n i TE ATTEST: ) - • • , - OUNCIL• MEMBER. DAT "• 7 6-4VjleD e CITY CLERK MAYOR • • � r• MAYOR PRO TEM • Minutes prepared by Deputy City Clerk, Barbara J. Toney, CMC. • • • • • • AAD /4