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HomeMy WebLinkAbout12021997 . . . executive session. RECESS There being no further business, at 11 :50 p.m., Mayor McCulloch declared the meeting recessed until 7:00 p.m. on December 2, 1997, in the Pope Marine Building. Attest: (~ ~-.; .I ¡ ~~, !' " i, , .' \- :,--r-- ;' /j " I "I ./ . .~J!.' '! ,<. \.' .---. Pamela Ko1acy City Clerk . I MINUTES OF THE CONTINUED SESSION OF DECEMBER 2,1997 The City Council ofthe City of Port Townsend met in continued session this second day of December, 1997, at 7:10 p.m. in the Pope Marine Building to continue Council members' general discussion on the 1998 budget, Mayor Julie McCulloch presiding. ROLL CALL Council members present at Roll Call were, Kathryn Jenks, Ted Shoulberg, Ian Keith, Bill Davidson and Jean Camfield. Diane Perry Thompson was excused. Staff Members present were Finance Director Michael Legarsky, Public Works Director Bob Wheeler, Financial Analyst Gary Leaf, City Engineer Dave Peterson, City Administrator Michael Hildt, City Clerk Pam Kolacy. Charlie Simpson, Bob LaCroix, and Catherine McNabb also attended from public works staff. City Administrator Michael Hildt passed out the rate model requested last night with yard waste included. Council members took a few minutes to look over the material. A straw vote was proposed: MOTION: Mr. Welch moved for adoption ofthe rate model for garbage rates with the modified discounts. SECOND: Ms. Camfield There was no further discussion. VOTE: Motion passed unanimously with 6 in favor. City Council Minutes December 1 &2, 1997 Page 11 . . . Mr. Keith stated that he would like to start with the difficult issues while all are fresh. He suggested corning to a conclusion on the Public Works Capital Improvement Program and the funding associated with that this evening. Ms. Jenks discussed a memo from Mr. Wheeler to the City Council on March 11, 1997, regarding public works priorities. She indicated that this is the type of information she would need in relationship for 1998 projects in order to make a decision on funding. Mr. Keith asked for comments from Mr. Wheeler about whether or not he felt this ended up being a good management tool. Mr. Wheeler stated that it would probably be difficult to depend on this type of report as an indicator of actual projects, time, and costs for the year. Mr. Wheeler noted that the work plan was done after budget approval in 1997, and it is very unusual to do a work plan prior to a budget. He noted the document was primarily developed for internal use and noted effort this year would be placed on the new expanded Capital Improvement Program! Capital Facilities Plan ongoing process. Mr. Peterson and Mr. Wheeler agreed that the designated project manager is generally responsible for the work plan for any specific project. Ms. Jenks stated that she is interested in producing feasible work plans and allocation oftime for all major projects funded by borrowed money. Mr. Wheeler stated the accomplishments projected for next year are a small part of the five-year stream of projects that will be funded in this package of capital improvements. In answer to a question from Mr. Shoulberg, Mr. Leaf noted that the projected utility rate increases are primarily to fund operations and maintenance, with a small amount of increase to go to debt service. He noted the 1998 rate increases are not related to the bond issue, as the first payment projected on the bond would be in 1999. Mr. Camfield noted that bonding is a decision that you are going to borrow to accomplish things you will do in the future over a 5-10 year period and each of those things will end up being a separate decision to be made by the council. It does not give departments permission to spend the money in any way they see fit. Mr. Keith noted the proposed C.I.P. for 1998 is smaller than in 1997. He stated he is uncomfortable putting this off into next year. He believes the council's job is strategy - the identification of what projects need to be done. After the projects have been identified and staff will be asked to provide estimates for cost and resources necessary for the accomplishment. He believes council should continue, adopt the budget, and scrutinize projects as they come to the fore. He also added that job costing is a crucial element to have in place and that staff resources City Council Minutes Page 12 December 1&2, 1997 . . . should be committed to that project, rather than continuing to provide more and more detailed information on the 1998 budget. Mr. Welch asked whether councilors would feel precluded from making alternations in time or scope to the content of the CIP once it was approved. Ms. Jenks noted that she doesn't think the council will have time to do that and all the other components of their workload for 1998. Ms. Camfield noted the council is not approving all individual projects now, rather the concept of funding for a five-year project list. She expressed confidence in the new finance employees and believes that they will be able to provide good financial information for council in the commg year. Mr. Shoulberg stated that delaying the decision is important because it has not been proven to him that all ofthese projects must be done in this budget cycle. Mr. Davidson noted that his main concern with budget approval is that some overload will occur when the police station is dealt Mr. Keith said his assumption remains that for projects not within staff members scope, the project budget includes the cost of hiring a project manager and will not add to the work load of existing staff. He added that he thinks enough information has been provided for council to make a decision regarding whether or not to approve or defer the issuance of bonds and acceptance of Public Works Trust Fund money. Ms. Jenks then moved to defer further consideration of the capital portion of the Public Works budget until after the first of the year. Mr. Shoulberg seconded. There was lengthy discussion regarding the intent ofthe motion by council with many clarifications by staff. After agreement by maker and seconder, the motion in final form was: Ms. Jenks moved to defer consideration of the portion of the capital projects of the Public Works budget that are slated to be funded by the revenue bond until we have more fully developed information which may well be into 1998. Mr. Shoulberg seconded. The motion failed on a 3-3 tie, with Mr. Davidson, Mr. Shoulberg and Ms. Jenks in favor and Mr. Keith, Ms. Camfield, and Mr. Welch opposed. Mr. Shoulberg initiated a discussion of the engineering group and whether that staffing should be project based and funded from capital funds. Mr. Welch stated that government, like business, must be dynamic and able to expand and contract; however he suggested the groundwork ofthe proposed organizational study should help City Council Minutes December J &2, 1997 Page 13 . . . this decision. Mr. Keith noted that the financial implications are similar, whereas consultants were paid fro capital improvement fund, and employees from rates, now employees would be paid from rates and the capital improvement budget would decrease by a similar amount. Mr. Peterson noted that Mr. Leaf has proposed good solutions to tracking costs and by assigning cost accounting to staff time, will accomplish the accountability and project costs for council. Mr. Keith also stated that the background of going to an engineering department was to reduce dependence on consultants and address concerns about lack of in-house supervision of those consultants. If the positions in engineering are eliminated, he added the city may end up going back to the same system. Mr. Keith then moved that council reaffirm the decision to form an engineering group and affirm the mode of funding of that group which is contained in the proposed 1998 budget. Ms. Camfield seconded. The motion carried 4-2, with Ms. Jenks and Mr. Shoulberg dissenting. Mr. Shoulberg moved that council put a hiring freeze on public works staffing until after an organizational study is done. Ms. Jenks asked for clarification. Mr. Shoulberg stated that it would include all positions that are to become vacant or are now vacant not be funded until after the organizational study is complete. Ms. Jenks then seconded. Mr. Wheeler clarified several specific positions which would be affected, including Development Review Engineer, Civil Engineer, and CADD Designer. Mr. Shoulberg noted that the freeze could be lifted for individual positions if it were necessary. The motion then failed 2-4, with Mr. Shoulberg and Ms. Jenks in favor. Mr. Keith moved that council institute a freeze on the creation of any new positions in Public Works and the Building and Community Development Department beyond the ones that are funded in the 1998 proposed budget. Mr. Davidson seconded. Ms. Jenks clarified that the freeze would not affect any other departments and would be for only the year 1998. Mr. Shoulberg stated that the motion wouldn't accomplish anything except to create a further scarcity of resources. Mr. Keith noted that because one ofthe rationales for moving to Waterman Katz Building is the improvement of efficiency. By approving the motion, councilors will affirm an expectation that the organization will work within the new arrangement to provide the services necessary within the staffing proposed for a full year. Ms. Jenks suggested extending the freeze to the Finance Dept. but the maker of the motion did not accept that amendment. The motion then carried 4-2, with Mr. Shoulberg and Ms. Jenks opposed. Mr. Shoulberg then moved that the duties of the Development Review Specialist be transferred City Council Minutes Page 14 December 1 &2, J 997 . . . to a team organization composed of the former water superintendent, the sewer superintendent, the city engineer, the development review specialist, and the public works inspector. Ms. McCulloch noted that this was an administrative matter as it did not involve eliminating a position or creating a new position. The motion was withdrawn. Ms. Jenks moved to adjourn the meeting. Mr. Davidson seconded. The motion ended in a tie vote, with Ms. Camfield, Ms. Jenks and Mr. Davidson in favor; Mr. Shoulberg, Keith and Welch against. Mayor McCulloch suggested the council complete the straw votes on the remaining components of the preliminary budget in preparation for adoption on December 15. Ms. Jenks moved to provisionally approve the operation and maintenance portion of the water distribution and water quality budgets, but commit to immediate and ongoing discussions with other entities both special purpose government and general purpose government, regarding the allocation of the responsibilities for the provision of water for the out of city service area. Ms. Camfield seconded. Mr. Shoulberg called for a point of order and stated the motion was out of order as containing two separate issues, one of which is not germane to the budget process. After lengthy discussion on the motion and on the point of order, Mayor McCulloch affirmed the motion was out of order in binding the approval ofthe budget to another action by council involving third parties.. Mr. Shoulberg then moved for moved for provisional approval ofthe water distribution operations and maintenance budget. Mr. Welch seconded. The motion carried unanimously with 6 in favor. Ms. Camfield moved for provisional approval of the water quality operations and maintenance budget. Mr. Welch seconded, The motion carried unanimously with 6 in favor. Mr. Welch moved for provisional approval of the wastewater treatment operations and maintenance budget. Ms. Camfield seconded. The motion carried unanimously with 6 in favor. Mr. Welch moved for provisional approval ofthe wastewater collection and biosolids operations and maintenance budgets. Mr. Keith seconded. The motion carried unanimously with 6 in favor. The capital budgets were held in abeyance. Kate moves to discuss potential for including certain capital projects which are not included in the budget, i.e., cross-connection control program, sewer trunk line, Water Street sewer line, filtration potential, transmission line, lift station replacement program, collection system improvements, effluent line off North Beach, wastewater treatment plant land purchase. The City Council Minutes December 1 &2, 1997 Page 15 . . . motion died for lack of a second. Mr. Shoulberg moved for provisional approval of the operations budget for stormwater and surface water fund. Mr. Welch seconded. The motion carried unanimously with 6 in favor. Ms. Camfield moved for provisional approval of the 1978 water-sewer bond redemption fund and the 1967 and 1978 series B and the 1992 bond redemption funds. Mr. Davidson seconded. After brief clarification, the motion carried unanimously with 6 in favor. Ms. Jenks then moved that $50,000 of debt service be allocated for the new police station. The motion died for lack of a second. Mr. Welch moved for provisional approval ofthe Equipment Rental Fund. Mr. Davidson seconded. Mr. Simpson clarified some ofthe individual expenditures. After discussion about certain line items, the motion was amended to add "with amendments and corrections by staff." After more discussion about line items and apparent discrepancies between 1997 and 1998 figures, it was agreed that the Finance Director should look into the budget and make corrections before the a vote was taken. The motion was withdrawn. Ms. Camfield moved for provisional approval of the Fireman's Pension and Relief Fund. Mr. Welch seconded. The motion carried unanimously with 6 in favor. Mr. Keith moved for provisional approval of the Fire Department Test Pit Fund. Mr. Welch seconded. The motion carried unanimously with 6 in favor. Mayor McCulloch noted that the final task for council is to balance the budget to allow for the expenditures added in various motions so far. Ms. Jenks moved to add to the list by allocating $50,000 to fund a portion of the payment of the debt service for the police station. The motion died for lack of a second. Mr. Shoulberg then moved to reduce the projected ending fund balance for 1998 by $36,114 out of the ending fund balance to cover the expenditures added to the budget so far in the proceedings and result in a balanced budget for 1998. Mr. Welch seconded. The motion carried unanimously with 6 in favor. Mr. Shoulberg moved that the 2% of the 5% franchise fee that comes from the 1997 collections of Summit Cable (approximately $17,000) be dedicated to the PEG station be carried over to the 1998 budget and be allocated to operations and maintenance ofthe station. Mr. Welch seconded. Mr. Davidson questioned whether that much money would be needed in 1998. Mr. Welch noted that there could well be unexpected expenses in the first year. Mayor McCulloch reminded that we are always working with estimated revenues and budget expenditures and that it would be City Council Minutes Page 16 December 1 &2, 1997 . . . helpful to have a year's worth of reserve so the fund will not be caught in a budgetary crunch if revenues don't corne in as expected. She also noted some of the money was expended on a consultant, and that only the unexpended portion would be carried over. Mr. Legarsky noted that the PEG fund would be created as a separate fund rather than just an account. The capital component required by the federal government should also be in a separate fund. The motion then carried unanimously with 6 in favor. Consensus was that no further meetings would be set before the council meeting on Monday, December 15, where adoption of the 1998 budget is on the agenda. The meeting was adjourned at 11 :05 p.m. /--------"'\ , i / '. I ;' '/ ','/l ,,' .,',/. 1"\ Þ, , , Pamela Kolacy, City Clerk ¡t- City Council Minutes Page 17 December 1&2, 1997