HomeMy WebLinkAbout06/07/1988 Business Meeting 362 •
JUNE 7., 1988
BUSINESS MEETING /STUDY'SESSION
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, Jerry Foy and Bernard
Sims present on roll call. 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
Mayor Berndt read a proclamation designating the week of June 6 -11,
1988, "Management Week" in the City of Yakima. The proclamation
was accepted by Wayne Louk, representative of National Management
Association. Mr.. Louk issued an invitation to City Management and
supervisors, County Government, and other agencies with an interest
in promoting good management principals to join his organization.
Mayor Berndt read a proclamation designating the week of June 5 -11,
1988, "Western Days" in the City of Yakima. The proclamation was
accepted by Rob Talcott, President of Westside • Merchants
Association. Mr. Talcott encouraged everyone to participate in
the Western Days celebration, stating a portion of the proceeds •
from pop sales will go to the Salvation Army.
4. RECOGNITION OF WASHINGTON MIDDLE SCHOOL CAREER EXPLORATION DAY
Mayor Berndt paid recognition to a group of students in the
audience today from Washington Middle School who had spent the
morning at City Hall observing the operations of city government.
5. AUDIENCE PARTICIPATION
. Ron Karcz, Impact Productions, played the taped public service
announcements and two songs he had recorded to be used in the
local war against drugs. Mr. Karcz stated he traveled to
Nashville, Tennessee to make the recordings, which he is
donating to the City, and he hopes they will be helpful in
combating the City's drug problem. Mayor Berndt thanked Mr. Karcz
for the recordings and his personal commitment to this project.
• Mayor Berndt reported briefly on the Drug Coalition's activities,
stating twenty -seven applications have been received for the
position of the Director of the Drug Coalition. These will be
narrowed down to approximately twelve applicants, and hopefully, a
decision will be made by July 1st. She reported that a legislative
coiunittee, headed by County Commissioner Jim Whiteside and Betty
Ingham, has prepared an agenda and is forming four sub committees
and have a plan of action already outlined. She stated the
Neighborhood Against Drugs (NAD) is planning a day long workshop
and asked Doug Pulse to inform the Council about this.
Doug Pulse, founder and active member of NAD, urged the media to
use the recording and public service announcements presented by Ron
Karcz. He reported on activities by NAD, stating the marches are
having a positive effect and the Council of Churches is planning a
prayer meeting toward the end of this month with approximately one
hundred ministers. Mr. Pulse stated the workshop to be held by
NAD will be interfaced with the Drug Coalition's program and will
be addressed primarily to the residents of the southeast area of
the community. Sessions will be offered in English and Spanish in
an attempt to reach the majority of the southeast residents. Mayor
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Berndt thanked Mr. Pulse for his report and encouraged him to
keep -up ,the, -,good work. Council member Carmichael added that she
• has the new posters , to be distributed by the ; Governor's.Alliance
. Against Drugs and „will make those available to; Mr. Pulse for •
distribution., •
6. REPORT FROM CITY _COUNCIL COMMITTEE - REGARDING TRADE ,STIMULANT
OPERATORS_.REQUEST FOR GAMBLING- TAX„REDUCTION•(SEE STAFF REPORT AND
PROPOSED ORDINANCE)
. . City Manager.: Zais - stated this is a, report ,from. staff.,, and the
• committee that has . - :been working. several, ,months • .with; the Trade
. Stimulant Operators •,(TSOs). •review-the, City's current taxing
authority on,pulltabs, and punchboards, and at the-same time, review
how that has impacted their industry .for several years. Zais
stated this was a helpful process for the City as. well as the. Trade
Stimulant Operators, in that the _City was able to, identify some
,better steps that „could be : taken on.collection and enforcement of
delinquent,_,accounts, andthis, has, helped.. in. bringing.. those payments
into _ 1ine. stated -this, :was . brought to,; City staff's attention
.through.,efforts,of the:TSOs, City Legal..Department • and .City_Finance.
• Department. He stated the:Couneil.has executed_a number of gambling
tax repayment, agreements •that, will allow the business. owners
. currently delinquent in ,paying their. taxes to bring them . current
. and_ maintain a current; ; .status.. Mr. Zais,-.stated the Trade
Stimulant. Operators had. requested. a reduction in the.state tax from
5% to 3.75% and after : a_ careful, review of the, situation, City staff
agreed -to-consider a 1% reduction in tax for the LTrade. Stimulant
• .Operators. Be indicated this. represents. of .approximately
• •.$34,584 a •year, however, staff believes the ,efforts _gained in the
aggressive enforcement and collections will.offset this, loss over a
period, of time ., „Mr, Zais stated,_ if • the. , ordinance is passed today
it,will•become:effective April 1st and will -allow the...retroactive
, status, to take, effect-, •.on, those, payments for the second quarter.
Council. member,Foy-,stated, there was an ordinance.,passed previously
regarding, the the ISO'p . process,. and asked ; what. is _ the , status of
that ordinance? Mr. Zais stated the committee did not discuss that
ordinance. in terms -of any action that might be taken, however, that
has been. a, useful , tool :in-connection with -the : .City's enforcement
,efforts., There -were ,no further questions from Council members and
none of. the Trade Stimulant Operators wished.to.make any, comments.
Ordinance No. .3102, having been read by, title, it was.MOVED, by
Carmichael,. seconded by Sims,, that the ,ordinance be :,passed.
Unanimously carried by roll,ca_ll vote.. Beauchamp abstaining due to
• conflict of .interest. . .
• ORDINANCE NO. 3102, AN ORDINANCE_relat to, licensesrand'business
regulations; reducing punchboard and pulltab gambling taxes; and
amending subsection., 5,49.020A .of the, City of Yakima,,..Municipal
Code. .
.7. SET. DATE: OF .COMBINED YAKIMA.,CITY COUNCIL AND YAKIMA:,COUNTY
COMMISSIONERS PUBLIC HEARING FOR PROPOSED TEXT AMENDMENTS TO THE
URBAN AREA ZONING ORDINANCE FOR JUNE 21, 1988
It was. MOVED by. Foy,, seconded by Buchanan, to set the .date of June
284.1988i. as thedate;,of joint public hearing-for the preview of the
Urban -. _;Area - -: "Zoning ,Ordinance proposed - amendments,. _ Unanimously
carried by voice vote .. . .
8. PRESENTATION OF FINANCING PLAN ,FOR ,WASTEWATER-. FACILITIES
COMPREHENSIVE- ,CAPITAL IMPROVEMENTS PLAN FOR 1988. ,,1992
City Manager Zais commented that Assistant City Manager Stouder
will make the presentation on this report today, however, many
. staff- members ,have - been - involved in- .the 'preparation of ,the; draft •
•Financing Plan for the,Mastewater Facilities .Comprehensive- Capital
. Improvements . Plan.,, stated., this is, the next and,. most major
piece in , terms ,of._ criticalness to the implementation , of, this
program -. . Mr.- Stouder .stated this Financing. Plan represents the
final major_phase: this...comprehensive,planning effort that has
. been under way for, almost three. years. He stated this particular
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Financing Plan looks at. the sewer system of the City's utility
system, and presents several short and long term options, with
several long term proposals to -implement those items that the
comprehensive planning process, the engineering 'studies, and the
process of the last three years mandates. The accompanying report
finds that rate increases are required to implement projects and
programs represented in the Plan and to meet= mandated requirements
set forth by the Federal Clean Water Act by the Department of
Ecology. All of the recommended activities in the report and the
Draft Sewer Plan are compelled by Federal and State mandates,
maintenance of existing facilities, a result of reduction in State
and Federal ••fuhding.for wastewater grants froth -90o to 50 %, prudent
concern- for the "health and safety, of the community, and concern
for, - perhaps those missed economic development opportunities, due
to inadequate ,facilities in past. Staff has spent a
considerable amount of time reviewing the "options presented today
and "•there •may be- other options and ideas on how best to meet the
needs' for the future and to maintain these facilities. We are
now embarked oh- the first- public discussion of-these options,
with- : additional public hearings set forth in the schedule before
Council. He stated staff anticipates adoption of- the Financing
Plan and•the Comprehensive Plan in late summer -or early fall. Mr.
Stouder pointed out that the proposals before :Council are based on
100% local funding and there- are no-State or Federal: monies
considered in any of these options. He .reminded Council that
recently the- City has received assistance in the 'amount of a
$940,000 'twenty year 1% loan from the State-Department Community
Development Public Works Trust Fund and anticipate like assistance
in future years. He added City staff has been working _with the
• Department- of Ecology for the past several months attempting to
secure centennial funding to-help offset some -of the costs. He
- reiterated that this Financing -Plan is entirely upon funding
by the citizens of Yakima and - the users of the • system. » •He stated
Chris - Waarvick,• Denny -Covell-and Chuck Greenough are present to
respond to Council's -inquiries regarding this report.
Council member Beauchamp asked Mr. Stouder•to comment further on
the statement that staff is not seeking any• federal or state
assistance and the lack of availability of those•'funds. Mr.
- Stouder- stated staff has been seeking Federal and State assistance,
however, federal assistance to state and local governments has
substantially declined from the 1970's.• He explained in the
1960's and 1970's there was 90 %•matching money available, but that
has recently been reduced to a 50% local match,.and the regulations
have become more stringent in that they are only considering the
more critical cases for funding.
Council'member Sims asked at what point does the City lose the
option of the 50% match? Mr. Stouder explained at the point that
• Congress changes the legislation and requires a lower or higher
match. He stated that is really based on State and Federal laws.
Council member Sims asked if the funds have to be acquired prior to
the start of the project, or can the project: be started and the
-City still be the recipient of a grant? Mr. Stouder stated the
• 12 million dollar project, has- a variety of things that be
staged, or scheduled, in such a way so. that the City will not be
excluded for grant participation. He stated we need to be sure
that we have full approval for any project so it -is a matter of
scheduling. He stated we aren't real concerned about losing
opportunities due to scheduling because we are working closely with
DOE on that because it is an important concern.
Council member Sims asked Mr. Stouder to give some background as to
why we would be raising the surcharge from 50% to: 96 %. City
Manager Zais stated -this has been a concern- of the City`Council for
a number -of years. He stated there has-been a number of requests
for a reassessment of the surcharge. -Mr.. Zais• stated a study,
which had . a basis for a significant adjustment in the surcharge,
was .completed two years ago and presented- to City- Council. He
stated that has been reevaluated and that is where the 96% figure
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comes from Chuck Greenough stated the basic - background• for the
surcharge is that the citizens of Yakima have essentially built a
wastewater facility and are providing sewer service to citizens
living outside - the City. The basis for the' surcharge isr'similar to
what you would have ; with a private • utility or'• utility such
as 'PP &L' or ''the gas' company. He stated' the - cost of operations is
built in;• 'as •well: as depreciation and return on'f investment . Mr.
- Greenough stated City residents pay a rate based. on: the_ actual cost
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to keep the operation going; depreciation is not an out -of- pocket
cost. He stated when you replace the facility land. you; have debt;
- that is an out -of- pocket cost and that cash _ outflow' :is built into
the rates that we charge our , customers. The outside surcharge uses
" a utility - -basis of charging so that we actually take . the ;cost of
• operations and depreciation is a part of thatas well as a return
on investment. He explained further, as we add facilities to serve
outside customers, those factors impact the amount of that
surcharge. He stated the amount of flow coming from ` the e= ivarious
areas' is :hold 'those costs- are allocated. for operation and
maintenance in particular. So ;as 'we increase - ouri - flows from within
the -City of Yakima that , would - , reduce' the percentage, therefore,
their- surcharge might go down. He stated if a large plant were to
' be' built' outside the City limits- and increase the flows, then the
'percentage allocation-'of 'O &M would increase.• He 'stated ".that is
- why you see a change 'in - that, and. -that is why the 102 % - figure of
- two years ago = 'is now - ' down to '96%. He stated each time that is
- reevaluated,: he expects : ther -e will be a change in the level of that
surcharge
Council member Barnett (expressed concern about the additional staff
people,' and asked if - the expansion will require thirteen new staff
people. ;- Mr-..Waarvick stated the report requests twelve -Inew staff
people' - and without- that, he does not - see:. how- the work:: can be
'accomplished as ' 'set forth in the " State regulations.: City6 Manager
Zais commented -when = •a - 'new/regulation , is added, it" impacts the
work •load and staffing. He•'stated the • R.W.; Beck Study in 1978
`recommended `higher . staffing levels ' than the City - was willing to
agree tb, arid' those studies' were driven by-' the Department of
'Ecology ,-and- the- Environmental' - Protection Agency. •He -said the
City 'cut back on the staffing -recommendations, is ',still' running
that -' plant--' 'today at , less than the recommended level of 1982
'staffing proposed -by DOE - and - EPA - to - do those= -=jobs 'effectively.
He was supportive of the staffing recommended- in the report' by Mr.
-' Council member Barnett inquired- about DOE and 'EPA regulations and
asked if- -staff ' can identify the costs rdirectlyi related'- Ito those
issues. He commented this would be helpful in selling this program
to the public and would be "very =• helpful during -the'- public
-hearings. -'Mr. Stouder stated Staff' can - prepare a more detailed
' •chart prior td the public hearings that will lists this :information.
Mr. Waarvick • explained that &mei of the costs - are • caused by
spin -offs of other DOE or EPA requirements. Council member Barnett
-- stated - }according to Table 7, ; he can only identify 32: 8% of those
costs- related to regulatory requirements,: but he is convinced the
'- figure is much higher, and would like staff to identify these costs
during• the''ptiblie - hearings." . - •. . :,- s:.,.-.- r; ...a_.
Council member , Foy referred. to Table VI, - the Utility Rate
Survey,. and commented- this - table is confusing to. him as he is not
sure >'-how'''staff intended -'it 'to be` used. • He stated twelve - out of
seventeen cities- -have- a. -lower rate than - the-" City 'of Yakima has
proposed at $13.64 and ' if these - twelve= cites are more
- efficient? He stated the" chart indicates they •- are r ;secondary
: - treatment,- but yet =• their' charges range. from $4.92. to $26. 09. He
stated he -feels the'' chart really doesn't- add to - what! the -City is
~trying" to illustrate: Mr. .Stouder stated staff will - clarify this
by putting the information that is in the narrative -on the chart.
Mr. `Waarvick -stated he can contact i some of the cities and -add some
of ° the =information that indicates - 'their rates :are, going to be
j modiffed and' there will be sane increases :' Mayor 'Berndt stated in
her conversations with Yakima' -area mayors, and in talking with
'other Washington people- at --NLC, -- -she - 'learned -that the City' s
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;increases _are going to : be much smaller than, the majority of other
. Washington cities. _
Council member to Section_11, Short,Term Analysis, the
last;. paragraph, and ;commented he would like to .see something
. relating to DOE, EPA, or any other agency's commitment to this
.project.in relationship to. grants. He stated, he relates this back
to the proposed .or recommended option _which says that-in 1992
there.,will be .an. 8.7% increase if that option, that is
recommended, is adopted. , He stated he thinks that is predicated on
the basis of ; grants. He stated he would like to know before this
project:is started,.what kind of,commitment DOE and EPA will make,
and he believes., it is time, we_ ask them for a:.letter. ; Mr. ,Stouder
. stated, staff requested a letter from .DOE, but has not, received a
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.response.. ,
Council member, Barnett referred to Table V11,, the third page which
,is marked EE10,; the ,last item relating to, providing trunk mains to
future..development- in ,the urban area for which has not
been included.in the rate analysis, and asked if this implies that
.no- new trunk mains will be made.in.the area until 1993, and
that,- new,trunk..mains, will be developed only if the legal issues of
the _ ,CCRC are. resolved? Mr. Waarvick -,. responded, .. "Yes. ", Council
member Foy asked what effect that have on the impact of
outside utility agreements? Mr. , Waarvick _stated currently there
is ; a- lot of .trunk, sewer in that. area that_ is not being_,,utilized
and staff is recommending no extensions of trunk sewers where
there are no residences, or very few homes. Council member Foy
stated between now and. 1994 the development : of the urban area could
change. and asked what will happen if that occurs and there is no
trunk ? Mr. Waarvick stated that could happen, and if so, it will
.be and ,a decision made, at that,.time. 'Council member
Barnett,asked Mr..-Waarvick to relate this to,the regional'concept
and the City's.legal obligation to,provide sewer service within the,.
- region,. Mr. Stouder stated Council, member. Foy's quest on. ;is how
much additional capacity does the City build ..in and who, pays for
that excess; capacity ?, Or do we : wait until; that time and .growth
proceeds beyond our projections and then . determine how the new
capacity is paid : for? Mr. Stouder,stated the general .philosophy is
that those residents requesting new sewer service should paying
,
• .for those : lines.,He.explained that Mr. Barnett's, question is more
of, an issue.•of what we are mandated to .do, by law. Mr. Stouder
stated the City has to serve everyone in the Urban.Area, -and the
City is doing that, however, staff has a responsibility to try to
guide, the growth : and development of the Urban Area and phase it so
the City.isn'•t faced with substantial one time costs.
Council.. member Foy, referred to Table 9 -C, which'lists the single
family.: outside. the City 1988 current - charges,, and asked,.staff to
explain this figure.to,him..Chuck Greenough : explained the process
_used to arrive at this figure, stating it is. correct.
Council member Barnett referred to Table, -9 -A,. and asked in
determining ..the. expenses for these f igures, . how did staff, handle
the; in -lieu tax . issue? Mr. Waarvick, stated the in -lieu
tax is calculated on the near gross revenues,which is currently 12%
of the near gross revenues right off the top. Council member
Barnett asked if it is appropriate for the ,in -lieu tax to be
tacked on to these multi- million _,dollar, capital, needs
, expenditures ?. He stated it seems to him it is kind of a
for the general_. fund. City Manager Zais stated we have not made
any calculation based on a. different tax rate as he has identified
• here,,so the General Fund,,Parks_, which are the beneficiaries of
the in -lieu tax,.are still the recipients of the tax rate. He
. stated. other General Fund Revenues have' leveled ,off in most
categories, most notably the..property tax reaching the,limit under
the two statutory- limits in effect. The,City.is looking, and will
..be .lookingfor other alternative funding,, not necessarily this
source, but _other ,sources . to help replace . or offset that
significant gap in.the growth of Property Tax and the General Fund,
so- that. is just one facet. to this whole question. Council member
Barnett,stated -it ;appears. to him that.we are putting in 26 million
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. dollars worth of expenditures-which are predominantly -State and
- _Federal mandates once those figures are confirmed. He: stated he is
not convinced all of these increases should be. going..into the
General Fund and should be applied .to the capital improvements and
hopefully keep those rate increases down a percent to demonstrate
to the public that we are putting _ than money - .into the projects
. rather.that•:using the General. Fund as a tbeneficiary. Stouder
stated staff, does not think-it is appropriate not to include that
since • it is a current tax. Mr. - Stouder stated, as an alternative,
staff could take another look at it . and :run those qlumbets without
that surcharge if Council would prefer. Mr. Barnett indicated he
does not feel this is necessary at this time.':
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II/ . ' There being -.no further questions fra t Council at this -time, Mayor
..Berndt - commended- staff on their media performance yesterday,
stating they did very_good job of the situation and as
• . -- a whole; the ,word isc.getting out-as to what the-City is doing,
. She stated the press_coverage was a good idea. - -
Referring to the schedule for the public meetings listed on page
3, Mr Stouder stated; staff. needs guidance on setting'the meetings.
Mr. Zais stated the June 28th meeting will conflict with the
. Association- of Washington Cities ; Conference and Council has
. traditionally cancelled this meeting due to attendance at AWC. It
was the: general ;.consensus of the Counci -1 to. cancel, the- =June 28th
meeting,.
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Mayor Berndt stated there will be two public hearings on the
Comprehensive Plans, however, Mr. Leonard Sherry had asked to speak
_...today..,:She suggested that. he . speak.. prior to .the Council making a
decision on the meeting, schedule. --Mr. Leonard Sherry,:-204 South
69th Avenue, stated ,he lives in the County by just a few blocks,
and even though he- is in favor : of annexing', but he thinks if the
City applies the 96% surcharge, it will discourage a lot of
citizens from annexing. He stated it took four years to get the
sewer- into *�his_ area "because -the people didn't want to be annexed
into the City. 'Mr:..Sherry:- stated that Mr. Stouder made the
statement that the City of Yakima built the Sewer Treatment Plant
and made it sound like everyone in the County•. contributed
nothing He stated he lived in the City._ until_,' just_, recently and
has paid :taxes on that plant, like many other citizens. who now
• reside in the County. He stated when his area got the sewer in,
. through a Local Improvement District, they had to pay a Capital
Cost Recovery.Chargerto:pay for'the trunk'lines_ that were installed
in the County so the residents in his area could connect to City
sewer. He said they all had to pay three years back interest,
and as he understands it, each year there will be one more year of
interest added. He asked if that is correct? Mr. Vanek stated
that is an assessment on the CCRC calculation and Mr. Sherry is
. correct. Mr. Sherry stated every month they pay a 50% surcharge
and now they want to raise that to 96 %, and he feels that is
excessive. He stated he feels the City Council should take this
• into consideration when they try to finance a lot of this on the
backs of the County residents. Council member Barnett interjected
some of these costs are a result of State and Federal mandates
because the plant currently does not meet government requirements
that have come about since the Sewer Treatment Plant was built.
Mayor Berndt thanked Mr. Sherry for his comments and stated he
will be kept informed of these costs, as well . as the dates of the
public hearings.
Council member Sims referred to table 9 -C and the incident that was
just discussed, and asked if they were annexed into the City would
their current rate of $13.14 be reduced to $10.16 in 1989? Mr.
Waarvick stated that is correct, if you are in the City you do not
pay the surcharge. -
Chris Waarvick commented on Council member Beauchamp's and
Barnett's' concerns about the construction of a new facility or
improvements to the current structure, stating he attempted to keep
these costs to a minimum. He stated trying to handle as much work
as they do now is difficult with the staff he currently has
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._ and _he knows it is . impossible' to handle any addlitional..work without .
_addit-ional. staff. ..Council. member Beauchamp__ stated. it_ just seems
1 _ the square foot. construction cost of. , $80•.00 is excessive. Some of
. .the ,other Council. members were in agreement. J. . .
Mayor Berndt,.stated_ Council needs to establish the.dates for the
two :.public hearings. It'.was .MOVED by Sims.,.. seconded byr =Buchanan, ,
, . to. ;accept .the-, report for review, and discussion_ and to :.set. •.the dates
.. . of, the public _hearings for July. 5th at) 2:00 p.m. and :July 12th at
.7:00 p.m. Unanimously carried. by voice vote.. . _
9. OTHER BUSINESS . . -_ . • -. .
.,Director of _.Community and Economic Development Glenn-Rice reported
on , .the. work = •,being. _done _ .by Pacific Power: &:.Light - to ,.change the
,transformers,.stating'the appropriate staff. and individuals will be
. here to .assist, with. this. effort on .Sunday. _Council member Foy
asked if Council.. will be given la' _report. on all of the '-charges for
this and Mr. Zais stated that can be provided.
_ 10. .. EXECUTIVE .SESSION. REGARDING.PROSPECrIVE. LITIGATION . • __
J. ., .
:L.It MOVED. by Sims, seconded_by Buchanan, to movei.into Executive
Session.., for approximately... twenty. minutes for' .the. purpose of
discussing prospective and : pending- litigation; -followed by
immediate adjournment. Unanimously carried by voice .vote.
11. ADJOURNMENT. _ _ _ . .. _ - _
.Following. the completion of the Executive Session,: the meeting was
.adjourned at • the ,hour of 4:12 P.M.
READ AND CERTIFIED ACCURATE. BY '� , , i , L.. � gj
/0 WL.•MEMB • � . , of •E.
L-- 'I Oqt f
ATTEST: _ , COUNCIL MEMBER. .. _, DATE
• CITY:CLERK MAYOR
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Minutes prepared by. Deputy. City Clerk Barbara J. Toney;_:'.CMC. ,J._r`.
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