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HomeMy WebLinkAbout04/22/1986 Business Meeting 294 APRIL 22, 1986 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 Henry Beauchamp, presiding, Council members Clarence Barnett, Pat Berndt, Lynn Buchanan, Lynn Carmichael, Jerry Foy and Jack Sparling present on roll call. City Manager Zais, City Attorney Andrews, and Deputy City Clerk Toney also present. 2. INVOCATION The Invocation was given by Mayor Henry Beauchamp. 3. OPEN DISCUSSION FOR THE GOOD OF THE ORDER Mayor Beauchamp read a proclamation declaring April 26, 1986 Special Olympics Day in Yakima. The proclamation was presented to a member of the Special Olympics Team. A second proclamation was read declaring the week of April 20 -26, 1986 as National Credit Week: 4. CONSENT AGENDA Mayor Beauchamp referred to the items placed on the Consent Agenda, questioning whether there were any additions or deletions from either Council members or citizens present. There being no changes in the Consent Agenda, the Deputy City Clerk then read the Consent Agenda items, including resolutions and ordinances by title. It was MOVED by Carmichael, seconded by Berndt, 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 MEETING OF APRIL 15, 1986 The minutes of April 15, 1986 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 A. REQUEST FOR SPECIAL APPEARANCE FROM RICK LINNEWEH, ADMINISTRATOR OF MEMORIAL HOSPITAL Rick Linneweh, Administrator of Memorial Hospital, appeared before Council regarding emergency medicine and pre - hospital care. Mr. 1 Linneweh stated the issue is whether there should be a single provider of such care in Yakima, or whether there should be multiple providers. He indicated the quality of service is deteriorating and the issue needs to be addressed. Mr. Linneweh stated Memorial Hospital and St. Elizabeth Medical Center are undertaking the responsibility of sponsoring a study group to deal with this issue and extended an invitation to the Council members to participate in this study. Mr. Linneweh stated he anticipates / the study will be completed within 90 days. Council did not commit themselves to participate in the study at this time. 7. REPORT FROM STAFF AND FRED S. JAMES REGARDING CITY INSURANCE COVERAGES FOR 1986 City Manager Zais made a few brief comments stating the reports from the broker and the memorandum from City staff are self APRIL 22, 1986 29- explanatory, however, Debbie Krautwurm of Fred S. James has some additional information with regard to possibilities for future umbrella coverage she would like to share with Council. Prior to Ms. Krautwurm addressing Council, Mayor Beauchamp read a proclamation declaring the month of May as Bicycle Safety Month in the community of Yakima, and declared Saturday, May 3rd as Bicycle Safety Day. Jerry Henderson, Chairman of the 1986 Bicycle Rodeo, expressed concern that the City of Yakima currently does not have a good safety program for young bicyclists. He stated Operation On Guard has developed the. Bicycle Rodeo to teach the basics of proper bike riding on City streets. He added the 6th Annual Bike Rodeo • will be held May 3rd, 1986 and thanked Mayor Beauchamp for the proclamation. Returning to discussion of the City's insurance coverage for 1986, Deb Krautwurm stated a couple of areas have opened up since their report was submitted to City management. She indicated coverage is still being sought for the excess transit liability insurance and the umbrella liability coverage. Deb then reviewed the City's basic liability program coverage reminding the City Council the first million dollars of liability insurance has been placed in force with the exception of the Transit insurance. Transit coverage is provided for only the first $150,000 in excess of the self- insured retention of $100,000.' This provides the City $250,000 of total Transit liability insurance. Ms. Krautwurm stated for additional transit coverage they now have one insurance company indicating they will be able to provide $4,500,000 dollars of protection in excess of $500,000. Further, the first $500,000 can be either insured or self- insured as the City chooses. The initial premium indication is $70,000 per year. She stated no indication of premium has been received for the general liability umbrella insurance. She informed Council there are two possibilities left for the umbrella liability insurance. She indicated.by the end of the week she will know whether Penco, the company currently providing the City's underlying limits, can provide umbrella coverage for the City of Yakima. By May 1st she will know if. Penco will quote, and May 15th is the earliest the premiums would be available. A second company has indicated a willingness to quote coverage if Penco would adjust or extend our primary coverage to the effective date of an umbrella. Penco, our primary carrier, had indicated we can extend primary coverage. This would allow the City to make the primary coverage effective the same date as the umbrella coverage .and potentially open the • umbrella market described previously. Unfortunately, the premium costs will be unavailable until near the end of May or first of June. City Management is requesting a decision be made and finalized 6n the insurance coverage by 1st, however, with these new events, she asked Council to reconsider and extend the decision to June 1st. On another topic, Ms. Krautwurm indicated she wanted to take this opportunity to brief the City Council on recent action by the State Legislature on Tort Reform. The State of Washington has taken some tremendous steps forward on Tort Reform. This new law will be effective in August. It will have a dramatic affect on the possibilities of purchasing additional umbrella coverage. One area for concern, however, is if the City should have a liability action which gets into the federal courts,. the new state law will not • apply. Regarding other non - economic concerns, Ms. Krautwurm informed the Council if the City should decide to cancel select areas of coverage, including the general liability, police and the public officials, Penco has indicated they will not be willing to reinstate primary insurance coverage should an umbrella become available later.. The City would be back at square one and would have to provide the first layer of coverage again before umbrella protection could be purchased. The primary layer area is ,still very volatile and there aren't a lot of companies interested in • • 26 ' APRIL 22, 1986 providing municipal coverage. The possibility of finding another insurance company to step into that first primary layer of coverage would be very difficult. That is something another aspect which needs to be taken into consideration before the final decision is made. Following further review of the report from Fred S. James and City staff report, Ms. Krautwurm responded to questions from various Council members regarding this matter. Council member Foy expressed concern with the amount of money the City is expending for insurance coverage, yet pays the claims brought against it. He also expressed concern regarding the fact that it is taking so long to obtain insurance coverage. He indicated he does not feel the Tort Reform is going to be the solution to the problem. Council member Barnett stated he does not like the price of the insurance either, however, is concerned with cancellation of the errors and omissions for public officials and police. He stated staff previously insisted this type of insurance is essential and does not understand why staff is now recommending cancellation. Council member Barnett commented he feels Council is placing themselves in a rather precarious position by deleting general liability, public officials and errors and omissions. In view of the.new information provided he indicated he is inclined to defer judgement until June 1st. Council member Foy reminded Council of the resolution passed to provide the first $10,000 retention for the airport, providing the airport could obtain coverage of $1,000,000. Mr`. Foy stated the Hearing Examiner is also provided liability insurance by the City and County. Ms. Krautwurm stated the airport is required to carry airport liability insurance, and the City of Yakima must continue to provide public official liability coverage through the same company the airport board is insured with, that company being Fred S. James. Following further discussion, it was MOVED by Foy, seconded by Carmichael, to defer the report until June 1st. City Manager Zais pointed out that the return premium is not as great, and there will have to be some continued proration of expenses involved in this (approximately $20,000.) Secondly, Mr. Zais commented on staff's earlier view of liability, risks and costs, stating this has not changed, however, given historical trends, it does not seem cost effective to pay exceptionally high premiums and raise retention levels to maintain our underlying basic coverage for existing polices. He indicated the City is actually placed in the position of paying the claims twice, both in the deductible and in the premium. Mr. Zais added stated the indemnification resolution was written to protect Council both in the,event of the insurance continuing at the $10,000 deductible level, as well as in the event the insurance is cancelled or not available. Council member Foy questioned how legally binding is a resolution. City Attorney Andrews stated it is binding in the sense it can be changed or repealed at the discretion of the Council. Council member Barnett requested a statement of impact on the airport should Council decide to cancel the insurance coverage. John Hanson, Director of Finance & Budget, asked for clarification on the intent of the motion. He indicated the packet also contains information on the Association of Washington Cities (AWC) insurance pooling project and requires a deadline date of May 9th f I if the City intends to- :participate. He requested Council act on this part of the recommendation also. Mayor Beauchamp stated "June 1st we either fish or cut bait with this whole issue." He indicated he is in favor of the self- insurance concept if the City is unable to obtain satisfactory proposals from Fred S. James by June 1st. Council member Sparling asked if Fred S. James is the broker of record. Mr. Zais stated at this time they are the broker of record for the City through contract. Council member Sparling stated he feels the time to "fish or cut bait" is now, as he does not feel the situation is going to change within the next 30 days. He stated if the market improves, the insurance brokers will resubmit proposals. He added he would vote against the motion. The question was called for a vote on the motion. Motion carried by 4 -3 voice vote. Buchanan, Foy and Sparling voting nay. It was MOVED by Berndt, seconded by Carmichael, that the City participate APRIL 22, 1986 297 in the Association of Washington Cities insurance pool study. Council member Barnett asked for clarification on the intent of the study. John Hanson, Director of Finance & Budget, stated the study is to explore opportunities available to Washington cities for insurance coverage. He stated a scope of the project was included in the Council packet along with other materials presented today. Council member Barnett stated based on comments made by State Insurance Commissioner Marquardt regarding this issue, he is hesitant to vote for this concept. Mr. Hanson reiterated this is only a feasibility study at this point. Following further discussion the question was called for a vote on the motion. Unanimously carried by voice vote. 8. REPORT FROM CITY MANAGER REGARDING PROPOSED NOB HILL STREET IMPROVEMENT BOND SALE PLAN AND RESOLUTION ENGAGING UNDERWRITING SERVICES City Manager Zais stated this is a report prepared by staff outlining the plan for sale of the Nob Hill street improvement bonds and other related street projects for the $5,000,000 bond issue recently passed. He spoke briefly about the information contained in the report to Council and asked John Rose, Seattle Northwest Securities, to address Council on the matter. Mr. Rose indicated interest rates for bonds are currently lower than they have been in the past' -six years and have undergone a tremendous drop in the last few months. He stated on that basis he predicts an interest rate on the bonds of 7 & 3/4 %, however, the City is looking at a very crowded bond market over the next several weeks and reviewed the reasons for this. Council member Foy stated he is supportive of staff's recommendation, therefore, it was MOVED by Foy, seconded by Sparling, that Council follow the recommendation in the report, and authorize the out -of -state travel for a committee composed of John Hanson, Dick Zais, bond counsel, the Mayor, and /or Assistant Mayor, and also authorize Seattle Northwest Securities as the City's bond counsel. Council member Buchanan suggested Council member Carmichael be included in the committee as she has followed the bond issue closely and has met with representatives from Moody Investors on another bond issue in the past. Council member Carmichael stated she was in favor of two Council members making the trip and suggested an amendment be made to the motion authorizing two Council members to travel to New York and meet with the Moody Investors. Discussion followed regarding the composition of the group that went on the last trip. City Manager Zais stated Pacific Power & Light District Manager Bob Peterson accanpanied Council members previously, however, he traveled at his own expense. Mr. Peterson was also President of the Chamber of Commerce at that time. Council member Foy suggested two representatives from the private sector, possibly PP &L and a member of the economic development community, accanpany the Council representatives and the representative from the bond counsel. It was MOVED by Buchanan, seconded by Carmichael, the motion be amended so that representation not be limited to the Mayor and /or Assistant Mayor, but have two Council members make the trip. Carried unanimously by voice vote. The question was called for a vote on the motion, as amended. Unanimously carried by voice vote. Resolution No. D -5244 having been read by title, it was MOVED by Buchanan, seconded by Carmichael, the resolution be adopted. Council member Sparling asked Mr. Rose how the City could improve the presentation for increasing the rating of City. Mr. Rose stated the Moody Investors are going to want to know (a) what are the reasons to think the economy is going to grow and continue to be stable and diverse, and, (b) granted the City has made substantial improvements in it's financial condition'in recent years, but what reason is there to think this will 'continue. He indicated it is very difficult to obtain an upgrade, however, feels - the City has an outstanding case to present. City Manager Zais stated he would like Council members to consider the dates of May 15 -16, and May 22 -23 for the trip to New York and advise him if they would be able to travel on either of those dates. It was the consensus of the Council to complete the items on the agenda and APRIL 22, 1986 continue discussion of travel at the end of the meeting. The question was called for a vote on the motion. Unanimously carried by voice vote. RESOLUTION NO. D -5244, A RESOLUTION concluding the letter of agreement between the City of Yakima and Seattle - Northwest Securities Corporation for financial services and authorizing and difecting the City Manager and City Clerk of the City of Yakima to execute an agreement with Seattle- Northwest Securities Corporation for underwriting services. 9. REPORT FROM DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT REGARDING PROPOSED INCREASE IN FIREWORKS STAND PERMIT FEES Bob Shampine, Code Manager, stated in 1982 RCW 70.77.55 allowed cities and local jurisdictions to charge a maximum permit fee of $100 per fireworks stand to cover the cost of administering the permits, etc. In 1983 the Code Manager proposed a fee increase fran $17.50 to $100, however, this was not approved by Council. Staff was instructed to bring the issue back after further study. Staff returned with a proposed $50 increase which was approved by Council. At that time Council directed staff review the issue in two years and consider raising the fees to $100. Today's presentation is a result of that request. Mr. Shampine directed Council's attention to the information in their packets relating to costs associated with 1985 fireworks, stating the reason for the fee increase is to help cover the costs associated with the sale of the fireworks. Discussion ensued regarding the increase in the cost of firefighting and relaxation of regulations governing the sale of fireworks. Council member Barnett commented there would be fireworks in Yakima even if the sale of fireworks was banned. He indicated the real issue should be whether or not the fees cover the costsfor inspections by the Code Administration Department rather than expenses incurred by the Police and Fire Department in fireworks related incidents, complaints to the Police Department, firefighting expenses, etc. It was MOVED by Foy, seconded by Sparling, to direct staff to respond with necessary legislation to increase fireworks stand permit fees to $60 in 1986, $75 in 1987 and $100 in 1988. Council member Buchanan stated he does not feel $100 is excessive, therefore, it was MOVED by Buchanan, seconded by Carmichael, to amend the motion to $75 for the first year and $100 for the second year. Council member Barnett commented he feels this issue should have been addressed at budget review rather than a few weeks before the 4th of July. Council member Carmichael agreed with Council member Barnett, however, she added there is no way the permit fee will ever off -set the cost involved with this particular issue. Council member Sparling stated he feels the fee should not be increased at all, adding the only thing it will accomplish is to drive the fireworks stands outside the city limits. He stated he would be voting against the fee increase. Randy Brown, 303 North 61st Avenue, stated in 1985 his insurance rate was $50,000 for $1,000,000 worth of insurance and $10.5 million dollar backup. As of 1986 there are only three companies in this country willing to provide insurance coverage. He informed Council his insurance rate is now $350,000 for $1,000,000 worth of insurance with a $2,000,000 backup. Mr. Brown stated it would be helpful to have this type of fee increase established by September each year, thus eliminating problems with renegotiation of contracts. Mr. Brown stated he is supportive of a reasonable increase in permit fees and added he would like to work closely with the Inspection Department on the inspections. The question was called for a vote on the amendment. Failed by 5 -2 voice vote. Barnett, Beauchamp, Berndt, Foy and Sparling voting nay. Mayor Beauchamp restated the motion and called for the vote. Motion carried by 4 -3 voice vote. Barnett, Beauchamp, and Sparling voting nay. City Manager Zais stated legislation would be prepared and brought back for Council action at a future meeting. APRIL 22, 1986 299 10. REPORT FROM DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT REGARDING COMMUNITY DEVELOPMENT BLOCK GRANT THREE -FIVE YEAR FINANCIAL PLAN Housing Supervisor Dixie Kracht made a few brief comments regarding the report and yielded to questions fran Council. Council member Foy complimented Mrs. Kracht and the Citizen Advisory Committee for the effort expended on this report. Mr. Foy questioned if approval of the report today committed him to acceptance of Item 5, page 4, which is the City of Yakima's contribution for staffing. He stated he feels this is a budget item, therefore, does not wish to approve this portion of the report today. Mrs. Kracht stated acceptance of this report today would not eliminate discussion of the item during budget review. It was MOVED by Barnett, seconded by Berndt, the report be accepted. Unanimously carried by voice vote. *11. PRESENTATION OF FIRE DEPARTMENT 1985 ANNUAL REPORT The report from the Deputy Fire Chief regarding the Fire Department's Annual Report for the fiscal year of 1985 was accepted and approved. *12. APPROVAL OF MARCH 1986 TREASURY REPORT (STANDARD MOTION V-A -- ACCEPT AND APPROVE REPORT) The report from the Director of Budget and Finance dated April 22, 1986, regarding the investments of the City of Yakima, was accepted and approved.' *13. APPROVAL OF OUT-OF -STATE TRAVEL FOR BRUCE CREST, CABLE COMMUNICATIONS COORDINATOR, TO SUN VALLEY, IDAHO The out -of -state travel for Bruce Crest, Cable TV Communications Coordinator to attend the Northwest Regional Conference of the National Federation of Local Cable Programmers (NFLCP), Sun Valley, Idaho, May 15 -18, 1986, at a cost of $386, was approved. *14. APPROVAL OF FINAL CONTRACT PAYMENTS (STANDARD MOTION V -B — ACCEPT WORK AND APPROVE PAYMENT): A. 1985 SIDEWALK PROGRAM The report from the Director of Engineering & Utilities dated April 22, 1986, with respect to the completion of the work on the 1985 Sidewalk Program, performed by Patterson Custom Concrete, was approved, the work accepted and payment of the final estimates as therein set forth was authorized. B. NOB HILL BOULEVARD REHABILITATION - 6TH STREET TO 3RD AVENUE /3RD AVENUE AND NOB HILL BOULEVARD SIGNALIZATION PROJECT The report from the Director to Engineering & Utilities dated April 22, 1986, with respect to the completion of the work on the Nob Hill Boulevard Rehabilitation - 6th Street to 3rd Avenue and 3rd Avenue/Nob Hill Boulevard Signalization Project, performed by Superior Asphalt, was approved, the work accepted and payment of the final estimates as therein set forth was authorized. C. PACIFIC AVENUE WATER PROJECT The report from the Director of Engineering & Utilities dated April 22, 1986, with respect to the completion of the work on the Pacific Avenue Watermain, performed by Central Concrete & Utilities, was approved, the work accepted and payment of the final estimates as therein set forth was authorized. APRIL 22, 1986 *15. CONSIDERATION OF AN ORDINANCE AMENDING THE 1986 BUDGET, AND APPROPRIATING FUNDS FOR COUNTY ROAD REPAIR FOR CITY SEWER INSTALLATION (SECOND READING) An ordinance authorizing the appropriation of sewer maintenance funds for sewer easement repairs having been read by title only at the previous meeting was brought before, the Council for a second ,.reading: ORDINANCE NO. 2957, AN ORDINANCE amending the 1986 budget. for the City of Yakima; and making an appropriation in. the Sewer Operating Fund for expenditure in the Sewer - Operating Fund for. expenditure during 1986. *16. CONSIDERATION OF AN ORDINANCE AMENDING THE 1986 BUDGET AND APPROPRIATING FUNDS FOR URBAN AREA ZONING ORDINANCE PUBLICATION COSTS (FIRST READING) An ordinance amending the 1986'Budget and appropriating funds for publication of the Urban Area Zoning Ordinance having been read by title only at this meeting, was laid on the table for three weeks or until May 13, 1986. • 17. OTHER BUSINESS Regarding the trip to New York to meet with the Moody Investors, Council member Barnett suggested it be determined which Council members are interested and available to travel on the dates previously mentioned. Discussion ensued in which various Council members indicated they feel it is important for the Mayor to be among those making the trip. In view of that fact, Mayor Beauchamp stated he prefers to travel May 22 -23 rather than May 15 -16. Council member Foy suggested those Council members available to make the trip notify City Manager, Zais tomorrow morning, and that • Mr. Zais contact Pacific Power & Light and the Chamber of Commerce to see if they would also like to send delegates at their own expense. This was the consensus of the Council. City Manager Zais reported a resolution of appreciation and commendation for 011ie Nelson and the Nob Hill Now Committee has been prepared and will be placed on the agenda as soon as it has been determined when they are available to attend a Council meeting. City Manager Zais also asked Council to consider Mr. Linneweh's invitation. to participate in the study to be done on pre- hospital care. He suggested . since Council member Buchanan has some expertise in this area that he consider representing the Council. Council member Barnett stated he feels the Council should not became involved in this matter until the certificate of need issue is indicated. Deputy Fire Chief, Tom Fieldstead, stated he attended the hearing on the subject recently and cautioned Council about becoming involved in the matter at this time as local doctors previously indicated adequate service is being provided to the community. He reminded Council this was their statement at the time the Ad Hoc Ambulance Committee conducted their study in 1984. • It was the consensus of the Council not to participate in the study, or become involved in the issue at this time. City Manager Zais also informed Council the City has been asked to consider dispatching for Care Ambulance and Medic I. He stated staff has been engaged in an analysis of this and had planned to bring the information to Council within the next few weeks. He stated in view of what has happened in the last week and with Mr. • Linneweh's presentation before Council today, it is his opinion this should be placed on hold. This was the consensus of the Council. Regarding the rotation policy versus the dispatching policy, City Attorney Andrews stated the City can't get out of the rotation policy at this time. • 301 APRIL 22, 1986 Mayor Beauchamp stated Council has been invited to attend the Special Olympics Saturday, April 26th at Zaephel Stadium and asked if any of the Council members might be able to attend. Various Council members indicated they had previous commitments. and it was suggested this be delegated to Assistant City Manager, Fred Stouder. . Mayor Beauchamp also asked for Council representation at a fund raising chocolate tasting event to be held Sunday, April 27th at the Thunderbird Motor Inn on North First Street. He indicated he would be out of town, and will be unable to attend. None of the other Council members being available to attend, it was again - suggested this be delegated to staff. Council member Carmichael indicated she feels it is inappropriate to delegate this type of request to staff. She stated it is the responsibility of the Council members as elected officials to attend these events as requested whenever possible. Information Items • Items of information supplied to Council were: Washington Nuclear Waste Board Announcement of public workshops on social and economic impacts of the proposed nuclear waste repository at Hanford, Washington; Letter from Mr. & Mrs. Vernon Alexander regarding woodsmoke pollution. 4/16/86; Letter to Mr. Ron Skala, Attorney, regarding "S" Street Watermain Extension Project complaints. 4/14/86; Minutes of the March 11, 1986 Community Programming Advisory Committee meeting; Monthly Report of Chief of Police for March 1986, and Yakima Center Management Report for March 1 -31, 1986., ; ,,,_ , . • 18. ADJOURNMENT - .. There being no further business to carne before Council, it. was MOVED by Buchanan,- seconded by Berndt, that this meeting be adjourned at the hour of 4:20 p.m. READ AND CERTIFIED ACCURATE BY /7 g4, COU►. % L MEMBER DATE CO , IL MEMBE• DAT ATTEST: i ii . 4 L � ���.. _ I L. '� DEPUTY TY CLERK MAYOR •