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HomeMy WebLinkAbout2003-04-15 Council Minutes - Budget Work SessionKENAI CITY COUNCIL BUDGET WORK SESSION APRIL 15, 2003 6:00 P.M. KENAI CITY COUNCIL CHAMBERS Council present: Williams, Bookey, Moore, Jackman, Swarner, and Porter Staff present: Freas, Snow, Semmens, Graves, Jankowska, Craig, La Shot, Kebschull, Wannamaker, Kopp, Frates, Kornelis, Baisden, Walden, Cole, Dye, Echternach, Hoagland Fire Department: Chief Walden offered an overview of the department budget and noted it had been reduced by $14,000 from when it was first submitted to the city manager for review, i.e. a portion of overtime will be charged to the airport for shift coverage at the new building and a significant cut was made in Maintenance & Operations by eliminating the small tools budget. Walden added, an appropriation may need to be made later if necessary, but currently, the equipment was in good shape. Walden also explained, some areas were not touched if the funds were to be used in regard to training, compliance and safety. He also noted an error at 2026: the total should be $1,800 less. A general discussion followed wherein comments included a desire to cut additional funds from travel. Explanations were offered as to the need of attending meetings/conferences, small tools grant funds availability, etc. Walden also noted the ambulance fees had not been raised since they originated in 1993. He added, they are aware through a statewide survey, Kenai's fees are on the high end of the median. Williams asked if it was possible to review the last five years of performance standards that have been made in the department and eliminate those that are not essential. Walden explained all had been unfounded mandates, i.e. car safety checks, seat belt checks, CPR training for city employees, etc. He added, none of the standards implemented in the last five years had a cost associated to them. Walden noted, the last ISO rating was in the mid-90's and the city was down -graded for water system, tanker and communications. Since all these areas had been improved he believed a retest should be done in the next few years. Swarner and Porter suggested additional monies be eliminated from the Fire Department travel budget since other departments had been cut more deeply in this budget. Findings: Review the ambulance fee schedule and change 2026 to -1,800 cleave at $300). No change to travel budget. Police Department: Chief Kopp reported it had been a year of transition with retirements, new hires, etc. The Department will continue their mission to protect the � KENAI CITY COUNCIL WORK SESSION APRIL 15, 2003 PAGE 2 community. A copy of the Department's Annual Report was distributed to council for their review. Kopp reviewed the budget information included in the report, noting the cuts and impacts to the department. He also indicated the dipnet fishery would be covered with seasonal enforcement officers. Findings: No changes. Communications: Kopp again referred to the information included in the Annual Report and reviewed it with council. He noted, the largest cut would be in microfilming, reader and Dictaphone repair due to use of Laserfiche software. A possibility of requesting funds from contingency could be made. Transportation was increased by $2,500 through a transfer from Airport. It was noted, due to increased security at the airport, attention by the KPD will be required. Findings: No changes. Animal Control: Kopp reviewed the Animal Control budget, noting decreases to Maintenance & Operation, Small Tools, Operating Repair Supplies. The biggest impact will be a decrease in vaccinations and based on a decrease in diseased animals and a five-year average. The budget also includes travel for one training seminar/ conference for both the officers due to the stress involved in the positions, the fact they are on duty 24/7 (with standby), need to updated in national concerns, techniques, etc. Findings: No changes. BREAK TAKEN: 7:26 P.M. BACK TO ORDER: 7:38 P.M. Recreation: Bob Frates, Parks 8. Recreation Director, reported the budget reflects the implementation of the Boys & Girls Club proposal and its associated costs. If the proposal is not accepted by either the Club or the council, $87,000 will still have to be removed from the budget. Frates noted, costs for the implementation of the proposal would still include a $125,000 maintenance agreement. Cuts were made in the multipurpose facility budget by eliminating April and September ice; the ice maintenance agreement will be based on 78 hours/week instead of 92; the budget still provides for port -a -potties, etc. and services for the Nordic ski trails. During the discussion it was also noted contact had been made with HEA in regard to the electricity costs and requesting a rate discount. Councilman Moore stated he would like this concern as a priority. Findings: No changes. KENAI CITY COUNCIL WORK SESSION APRIL 15, 2003 PAGE 3 Parks: Frates reviewed the Parks budget and noted there was a decrease in salaries and benefits due to the layoffs anticipated with the acceptance of the Boys 8v Girls Club proposal. There are funds included in the Small Tools budget to purchase a split seeder and enough funds were left in the for him to attended the state conference. Findings: No changes. Beautification: Frates reviewed the budget information and noted one-half the cost for the split seeder would be borne by this budget and funds were included for surveying at the cemetery to add availability of plots. A brief discussion followed in regard to increasing the size of the cemetery by moving the airport runway north and requesting FAA for two to three acres that will no longer be needed for the runway. Discussion also took place in regard to watering in the downtown area. It was noted: • Frates works with organizations, i.e. PRISM, KVCB, Chamber of Commerce, etc. for them to help with watering their grounds when they can. • Costs for placing an irrigation system at the Memorial Park would cost approximately $30,000. • Funds were included in the budget to contract with an outside source for evening, early morning, and weekend watering. • Councilwoman Swarner would prefer increasing funds for personnel than for watering. • This item could be readdressed if funds become available or if the summer weather is dangerously dry. • The availability of plaque spaces at Memorial Park is down to a few, though there are still spaces available for rock memorials and the department is working toward developing an "adopt -a -bench" program. Findings: No changes. Recreation Center Operation Discussion: City Manager Snow reviewed actions taken place in regard to the proposal for Boys 8v Girls Club to assume the recreation program at the Center. She noted, • A specific group was contacted to provide the program due to their experience with these types of programs. • The Club provided a letter of interest which was forwarded to the council members and commissioners. • The Club's letter of interest was discussed at the April 7 budget work session and public input was received. • Club board representatives gave a presentation at the April 7 work session which was followed by a good discussion between the representatives, council and public. KENAI CITY COUNCIL WORK SESSION APRIL 15 2003 PAGE 4 • Council requested a draft memorandum of agreement be prepared by City Attorney Graves. • An internal working document was in hand and she and other administration personnel would meet with representatives of the Club in hopes to finalize the draft for council, commissioners and the public to review. • If possible, the draft memorandum of agreement may be able to be placed on the city's website, along with an explanation of the document. Williams noted, the Club's assuming the recreation program will save the city $871000; if the Club does not assume the program, $110,000 in cuts will take place at the Center; the city is not giving anything away, i.e. this would be a partnership relationship and the hope is to enhance the current program. Public comments were taken: Karen Kester, President of Peninsula Oilers Baseball -- Referring to comments made at the April 14 budget session, Kester stated the Oilers would not be returning the field to the City until the lease ends. The City doesn't pay for maintenance of the Oilers facility; the value of the facility is approximately $357,000 with the new improvements; the Oilers couldn't operate the facility without the city's support; and gaming or not, they will be using the facility until the lease expires. Williams requested a copy of a letter prepared by Attorney Graves be made available to Kester as well as other non -profits. A brief discussion took place in regard to gaming concerns and its effect on programs of non -profits. Kester stated the non-profit organizations would be hurt more than the Oilers. Kristine Schmidt, 513 Ash, Kenai -- Schmidt's comments included: • Privatization to a private sector club is a major change of policy and deserves more public input. • Differences between private and clubs -- a private club can have exclusions. • People in the community would like to help develop alternatives instead of gutting the city program, i.e. a service area, RFP, cooperative agreement with the Borough to provide services; close newer city facilities which serve only a small portion of the community (multipurpose facility); brown grass instead of laying off four people. • She is very much opposed to the proposal, no matter how it is considered; it is privatization of the program and there is no guarantee members of the public won't be turned away. Williams stated the agreement would be made available to Schmidt. Williams commented on Schmidt's comments: � KENAI CITY COUNCIL WORK SESSION APRIL 15, 2003 PAGE 5 • The city would not have to create a service area in the budget if council feels strongly and the community voices their concern the council should continue the program. • Whether it would be allowable for the city to set up a service area would have to be investigated by the city attorney. • The city might be able to develop a cooperative agreement with the borough, however the city is a home -rule municipality and it would be working with a second class borough. He is not sure the relationship would be something that would be workable. • The city is cutting back two months of ice at the ice rink and there are many users of the facility other than hockey. • In regard to cutting back on beautification of the community, he didn't want to return to what the city looked like 35 years ago. • Past programs offered at the Center received complaints because it was felt the Center's programs were unfair competition for private sector programs. Williams added, he was concerned that if the city retained the recreation program, $110,000 would have to be either cut or the mill rate would have to be increased by two, or take the money out of the bank and increase the deficit. He added, he didn't want to raise the mill rate this year more than 1.5 because it may need to be raised again next year. The question is to save $87,000 or cut $110,000. Jan Echternach, 37070 Even Lane, Kenai -- Noted the workers at the Center are the lowest paid on the city's payroll and in that, it saves the city. She added: • They do all their own custodial work (including cleaning carpets, etc.) and suggested additional savings to the city would be for other departments to clean their own facilities. • Fees were raised in October for the first time in the seven years she worked there and suggested another review of the fees. • Implement new programs. • Give them a year to do something to change the dilemma. • Reviewed recent new programs at the Center (wallyball scramble, pick-up ball, etc.) Suggested fees be charged for those now using the facility and not paying (senior line dancing, Boys & Girls Club, etc.) • The Center is busier now than in the seven years she has worked there. She was told in the past they are there to provide a service and not to make money. Now it's about the money which should have been addressed years ago to cover costs of the facility. • The Boys & Girls Club programs are for teens and the teens won't want the programs. They don't want to have to participate and want a place to hang out and the Center is a safe place. KENAI CITY COUNCIL WORK SESSION � APRIL 15, 2003 PAGE 6 Williams noted, until this year, the city didn't need to be concerned about fees. However, the areas creating the crises this year were insurance rates, PERS increases, Kmart closing and interest rates dying. He challenged the group to bring him a list of constituents (qualified registered voters of the city) who will have no objection to a two mill increase this year instead of a 1.5. A brief discussion followed regarding the Club currently paying rent for use of the Center for their indoor soccer program. It was learned they pay for Tuesday and Thursday and it has free use on Saturdays for two hours. Bob Molloy, City Resident -- Stated he agrees with other speakers and noted: • Thinks the proposal is going way too fast. • The original proposal was very vague. • Thinks it is bad public policy to contract with a private clube to operate the facility. • Would be better to get a broader rage of other private operators to bid on it. • Been a supporter of adult groups at the Center. • Believes in user fees and thinks more revenues could be generated if the city does it in-house. • If more time is given for people to come through the Commission to offer alternatives, he thinks there is money in the budget where the Center could be kept open and it wouldn't run the risk of adults being shut out. Molloy asked for more time and the matter be forwarded to the Commission in order for alternatives to be presented in a positive way to keep the Center run under public operators. Paula Hammelman -- Stated she worked at the Center in the past and uses the Center now. She commented: • She thinks it will be a great loss to the city. • Teens like to make their own choices and they may not want to do organized sports. • She's concerned she will get pushed out of the Center. • The Center is an asset to the city. • Suggested advertising the programs the Center currently has and it may get used more. • Concerned how the facility will be maintained by the Club. Lea Hoagland -- Stated she works at the Center and thinks there are many more things than can be done there, i.e. charge the teens to use the Teen Center, charge a dollar to use the gym. She works there on Sunday and there are only kids using the KENAI CITY COUNCIL WORK SESSION APRIL 15, 2003 PAGE 7 facility. She added, it didn't make sense to her to do this. Once the Teen Center is gone the kids using it will be out on the streets and she was concerned for their safety. Williams stated when the Center was built, there were no financial concerns. If people are willing to pay for the facility, it could reverse the position. Boys & Girls Club Board Representatives -- Representatives Peter Micciche and Tina Marie Herford offered the following information: • They will provide websites with municipal partnerships, who have adult programs, and programs receiving compensation from municipalities in addition to the facility. • They are wanting to make the existing programs better at the Center. The have national programs developed to offer kids/teens. • They are not planning on ceasing the pool program at the Teen Center. • When asked if they planned on cutting the senior citizens participation in line dancing and walking, Micciche stated they were not planning to make a big change and it's about doing what they do best. • As noted earlier, they receive 64% of their funding through federal grants, Councilwoman Porter stated she hoped they could be able to increase those funds. • They are investigating coupling the existing adult program at the Center with the Club programs. They believe they can make the programs offered at the Center substantially better and will look for examples of types of successful partnering, teen and adult programs. • Herford noted, Mt. View in Anchorage received compensation for community programs, including teen programs. The compensation was determined by the additional costs they would have to incur to keep providing the current programs. Some partnerships may not have community programs. Councilwoman Swarner requested the draft Memorandum of Agreement be placed on the city's website as soon as possible. Miccicihe requested any additional questions be forwarded to them before the meetings in order for them to better research and be ready for answering. Adjournment: Two additional work sessions were set to review the remaining budgets. The work sessions were set for Monday, April 28, beginning at 6:00 p.m. and Tuesday, April 29, beginning at 6:00 p.m. Williams reminded council and the attendees of the following: KENAI CITY COUNCIL WORK SESSION APRIL 15 2003 PAGE 8 • Senator Lisa Murkowski will visit Kenai City Hall at 10:00 a.m. on April 16 and will be the featured speaker at the Kenai Chamber Luncheon. • A reception will be held for the UAA Board of Regents at' the Challenger Center at 6 : 00 p.m., April 16. • He and some administration will meet on Monday at 11:00 a.m. with staff of Congressman Young's in the Clerk's Conference Room. • He visited the new dental clinic in Kenai and was very impressed. The work session adjourned at approximately 9:23 p.m. Notes prepared by: Carol L. Freas, City Clerk AMOVED By COUNCI