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HomeMy WebLinkAbout1998-04-29 Council Minutes - Budget Work Session• U • C. d. e. f. 9. h. i. J• k. 1. M. n. o. P. q- r. S. t. U. V. a. b. C. d. e. a. MWORT WORK SN88ION APRIL 299 1998 KLNAI CITY COUNCIL CHERB 7:QQ P.M. Legal City Manager Finance Land Administration Non -Departmental Planning & Zoning Safety Police Fire Communications Animal Control Public Works Administration Shop Streets Buildings Street Lighting Library Recreation Parks Beautification Water/ Sewer Fund Airport Land System Fund Senior Citizens Title III Grant Fund Senior Citizens Borough Grant Fund Senior Citizens Title V Grant Fund Debt Service Funds Budgets -1- i I* XTEMA TERhRISE�Fi»!3 a. Boating Facility Fund b. .Airport Terminal Fund C. Congregate Housing Fund I'WWI., a. Land Sales Truet Funds Budgets rr= 7: R ATIDI�AL i�r 8 a.' 4/22/98 Budget Work Session Notes b. AML Fax Alert - What lfgg Can Do Before May 121. 11 -2- • • • BUDGET WORK SEBBION APRIL 29,1996 MNAI CITY COUNCIL CiIAM8ER8 7:00 P.M* COUNCIL pRLSENT: Bannock, Smalley, Williams, Swarner, Bookey, Moore.. COUNCIL ABSENT: Measles. STAFF PRESENT: Freas, Chaves, Springer, Ross, Semmens, DeForest, La Shot, Kornelis, Holland, Porter, Morris, and Elson. OTHERS PRESENT: D. Lucas (Peninsula Clarion), E. Claussen, and Bob Peters. Mayor Williams called the work session to order at approximately 7:03 p.m. Council resumed review of the department budgets, beginning with the Legal Department. c. Legal Attorney Graves reviewed his department budget with council, noting the major change in the budget was in Professional Services. He explained, the amount was reduced because the Trustees want to have the Inlet Woods case finished in July and costs attributed to tb a case should be less than $50,000. He noted, he had also included funds in his budget for new computers for he and the Legal Secretary. He added, their computers are four years old and are in need of upgrade/replacement. It Graves also explained the amount of $11,600 was included in his budget for code conversion and software. He added, the conversion will include reformatting and re - indexing the code. The estimated cost for the work is between $8,000 and $11,600. At this time, the format and vendor had not been decided upon, but he and the City Clerk will decide after receiving proposals and specific information. He also added, part oftheprogram will make it available on CD- roms, as well as have it in a format to include it on the city's website. Chaves also explained plain d t and itisthat the to do already owned the machine to update the code that. Swarner asked what would .be done with the old computers. Ross answered, he,..., would probably get one the Legal Secretary's and Parks & Recreation will make use of other used computers. Direction: There were no objections. Budget approved. d.. City mamwer Ross explained he included computer software for the used computer he will receive. It was noted, there was no money included in professional services as he is now an employee instead of contracted. . KENAI CITY COUNCIL BUDGET WORK sE3gION ppRIL 29,1998 PAGE 2 Direction: There were so objections. Budget approved. e. Finance Semmens explained the largest- change to his budget was the funding for the new d software, as well as the added hours for the receptionist tairos ion (disputer an lggg budget work session) . He noted, p (discussed during Apri122, e was increased a little because the maintenance co B�'at. He als one a� ew compunanc than what has been paid in the pa computer will be more costly travel w as increased a little to allow for travel to attend an insurance conference- travel Semmens, also explained he has informally solicited information from different those in vendors for the new finance computer software and hardware, hespecially k d hat was Alaska, for informal price quotes to develobinge. Semmens explained, the being done to pursue collections on ambulancethe delinquencies and getting improved Legal Department has been credit-reporting It was noted, there was approximately $1 been har charged for the last three collections. ambulance billings and that ambulance services t $100,000 has been collected each approximately , years, Semmens noted,dcocil expected approximately 25% delinquency winch is year, Bannock added, what it is now. Direction: There were no objections. Budget approved. L Land Administration Ross noted, not much had changed in professional services as its basedo the amount historically used and depends on lavetransactions pal services would change (appraisals, title processing, etc.) Smalley ask p . Inlet Woods settlement. Ross answered, it could as rt smatter would be pending the Ineally thought the Inlet Wood Williams asked Graves if thetrustee eredrthe trustees said their plan is to have it cleared up by July. Gravy ernes to the city. wrapped by the end of Jul , including conveyance of the prop However, it could change. Direction: There were no objections. Budget approved. g. Non -Departmental • changed: Professional Services for network administration Ross noted two items had h geAn increase was also included in and computer work in city resentations from laptop computers. The Equipment for a projectionused for Planto allOw ning &Zoning hearings* etc. equipment would be us • ICENNAI CITY COUNCIL BUDGET WORK SESSION gPR1L 29, 1998 PAGE 3 ants. Swarner asked if Ross also noted, Grants to Agencies was org a rental of postage machines could be consolidated. ossnswered, the machines were handled departmentally. Williams asked, for what would general contingency be used. Ross sans contingency had been used three tunes last year but is the contingency for all the budgets instead of putting contingency in each department fund. He added, it could be used for snow removal overtime, etc. Swarner asked why Repair & Maintenance had increased so mucclhe replacement answerent o fthe they knew janitorial contracts will go up. Smalley asked about carpet in City Hall. Ross noted, it was scheduled to be replaced in 9. He added, both the Police due to bids received for replacing carpet at the Public Safety Buildings and Fire Department would be replaced in FY98. Direction: There were no objections. Budget approved. h. Planning & Zoning t change was due to the $30,000 in last year's Professional La Shot noted, the largest Services budget for preparation of the Comprehensive Plan and without items is decreases the P&Z total budget substantially. He noted, g in this budget include a new computer for the Administrative Assistantcis as weno CIS software. The computer will first ummer, thethe summer computer will go to the will be inputting information. At the end of the Administrative Assistant. much - La -Shot noted, the Administrative Assistant's present cussion fol cowed ui regard ° PSradulg waxed out because of the software on it. Adis older computers or purchasing new ones. Moore noted, he we of k of frustrated with drive purchasing of new computers that are soon users all that outdated eed d is a 166• Ross noted, the space. Rosa stated, for some of the� Official. Assistant's present computer would be taken by the Building Discussion followed regarding the city networking and the costs involved in having technical assistance available for maintaining network a network. Rosa noted, a full system was investigated last year, and it was found the cost was prohibitive. D3seadon: There were no objection. Budget approved* i. safety 0 . KENAI CITY COUNCIL BUDGET WORK 3ESSIOIV APRIL 29, 1998 PAGE 4 Kornelis reported the budget was status quo.. It was pointed out, professional. services was decreased due to lack of contract use. Ross noted, the safety position had not been filled and Kornelis was doing that work. Ross also noted, they, did notexpect to. - fill the position, but did, not want to remove it from the budget completely. An amount was included in salaries would like the funds to stay in the budget with the understanding the position won't be filled, but transfers may be made to professional services for training use. Kornelis informed council they will be bringing a presenter into the city for electrical training. City employees will be attending, as well as some employees from other local entities. Those from other entities will pay a fee to attend. Kornelis also informed council a voluntary inspection will be done during the year, but it has not yet been scheduled. He added, the city STP may become a model for OSHA to use in their training classes. Direction: There were no objections. Budget approved. J. Police Ross noted, .$7,500 was added to this salary budget to cover costs incurred in regard to the dip net fishery. Morris also noted, they would be purchasing two new computers and one patrol car. He added, the computers would be used mainly to access their records Lent equipment. Ross also explained the KPD Machinery & Equipment budget had decreased substantially due to the purchase of the new computer system last year. Moore asked what the additional $7,500 would cover in the- dip net fishery- costs. Morris explained, it will, give the department the ability to give tlxe normal part-time person additional time and will be able to do additional criminal enforcement on the bluff for trespass. He added, it will also allow seven -day -a -week enforcement on both sides of the river and the boat launch area. Williams noted, their Repair & Maintenance budget had increased to cover repainting a vehicle and doingssome boiler repairs, etc. Williams asked if each repair project was carried into the individual budgets or into building maintenance? Morris explained, the largest increase was $5,000 for a new janitorial contract. He also explained, a patrol car will be repainted for his use and his car will be taken off the road. . Direction: There were no objections. Budget approved. 0 . KENAI CITY COUNCIL BUDGET WORK 3E33ION APRIL 29, 1998 PAGE S k. Fire Fire Chief Elson explained there were few changes to his budget from the previous budget. He noted, two computers were included to replace two 386 computers. He also noted, last year they made a one-time purchase of, specialty uniforms and no uniform allowance was included in the budget. This year, they will be returning to the normal uniform allowance program. Direction: There were no objections. Budget approved. 1. Communications Morris explained there was an increase in Machines & Equipment for the replacement of two instrument playback recorders used by the dispatchers. He added, there are frequent problems with the present equipment, and parts are no Imiger available. Swarner asked why travel had increased to $4,000. Morris answered, depending on what happens with personnel, they may have to send someone to their software 46 supplier's training. Direction: There were no objections. Budget approved. _ m. Animal Control Morris explained the large increase was due to the budgeting for a new pick-up truck and personal computer. He noted, utilities will increase due to the new building. Direction: There were no objections. Budget approved. n. Public Works Admiaistration Kornelis explained, this budget decreased by approximately $200 from the 97 budget. Repairs & Maintenance decreased because the scanning of large blueprints was mostly completed. Williams requested council include $5,000 in the Public Works budget to pay for some engineering consulting to identify materials, designs, etc. for bluff erosion. He added, the information received could then be used as a comparison to information that will be received from Alaska Science & Technology. Discussion followed wherein Bookey stated he was not comfortable in budgeting the $5,000 because it was not known whether a program could be developed which the city can afford. 11 • xExnt crrx covNcn, HunoEr woRuc sEsstoN npxIr, 29, 1998 PAGE 6 Moore stated he agreed with Williams and that this company (Nottingham, Petratrovich. & Drage) had a lot of experience and that $5,000 was not a lot of money compared to the purchase orders and bills council approves during their meetings. Ross stated he had no objection to including the $5,000, but would like more definition of what Nottingham was offering prior to spending the money. Bob Peters (member of audience) stated he agreed, with Williams and added, it would be an investment in the future. He noted, there was new erosion under the drain along Mission Avenue. Peters also suggested the fence be placed again to keep people off the bluff. Direction: include $5,000 in Public Works Professional Services. Budget approved. BRFAX TAKEN: 8:29 P.M. BACK TO ORDER: 8:38 P.M. 0 o. shop La Shot explained an increase in the budget was mostly due to the desire to purchase a pad for the diesel fuel system. There will bee -a decrease in salaries as Dave Reetz will be retiring, however the budget does not. reflect his retirement. Also, there will be a computer purchased for use out on the floor of the shop for diagnostic use. Direction: " There were no objections. Budget approved. p. streets Kornelis explained this budget reflects dust control, asphalt repairs (Recreation Center parking lot) and the conversion of the dump truck to a sander. Swarner asked if there would be enough in the budget to cover dust control. Kornelis answered yes, there was enough budgefied for a one-time application. He added, a purchase order would be included in the May 6 packet for this season's dust control. They will. begin the application on May 11.. Moore asked if the lawns will be repaired where the grader blades had damaged them. Kornelis answered, soil will be dropped and spread. Seed will be applied by Parks & Recreation. This will be done as soon as the ground dries out. He noted, a list of yards to which repairs will be made had already been started. • KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 29, 1998 PAGE 7 Direction: There were no objections. Budget approved. q. Buildings La Shot noted, Repair Supplies had increased due to two maintenance people working. However, these additional costs will be offset from not contracting work out. Direction: There were no objections. Budget approved. r. street Lighting Kornelis .stated the amount budgeted was the same as last year - $10,000 for new street lights, $61,000 for power and $4,000 for repairs. He also reported, a list of requested placements had been started from citizen requests, and Police, Fire and bus company suggestions. The list will be forwarded to HEA who will submit a cost estimate for each and then council will decide on which will be placed. Williams asked that cost to place a light at the entrance of the ARFF building be investigated. Bookey suggested another option would be to have the contractor put in their own fight as they may be able to run their own power. Kornelis stated he would add the request to the list and La Shot could discuss the matter with the contractor.. Direction: There were no objections. Budget approved. s. Library DeForest explained her budget included purchasing new terminals to replace dumb ..., _ terminals for the catalog system. She thanked council for approving the request for a new part-time employee. Swarner asked if $8,000 would be enough for office supplies. DeForest answered, she believed so as some items are purchased every two or three years because they can get a better price for a large quantity. Discussion followed in which DeForest identified the intermediate age group (8-14 years old) as one for which they were lacking space. She added, the more Internet . materials available to them, the more they are reading. They are trying to replace older science materials. Swarner requested the book budget be increased by $8,000-$10,000 to attract more of the 8-14 year old children. Williams was concerned there would be no place to shelve the additional books. DeForest confirmed the Library Commission had not discussed the matter. DeForest suggested that if an addition was to be made, to place. the funds in Advertising. The funds would then be used to start a new kids program to entice them into the library, i.e. reading program, additional summer program, • KENAI CITY COUPTCIL BUDGET WORK 3E33ION APRIL 29, 1998 PAGE 8 evening program, etc. Swarner requested $5,000 be added to Advertising, :Waking the total $6, 500. Whether the funds should be included in Advertising instead of Continency was discussed. It was decided to include the additional $5,000 in the advertising budget in order to track the costs better. Direction: include an additioaal $59000 in Library Advertising. Budget approved. t. Recreation Ross explained Director Frates was out of town, but the increase in this budget was mostly due to salaries. • Direction: There were no objections. Budget approved. u. Parks Ross noted a new tractor and funding for the development of the new Hansen Park had been approved during the last budget hearing. Moore requested Weed & Feed used on the Little League fields as they needed it badly. Direction: There were no objections. Budget approved. v. BeantiScation Ross noted there was a decrease in Small Tools and Repair and Supplies due to the spending history. - He added, utilities will increase as this budget will: take over the utility costs to the greenhouse. Bannock reported Frates had given a presentation at a recent Rotary meeting which was very interesting. He was very impressed with the program of all the work that is done throughout the city. Smalley asked if plantings for the new animal shelter will come from this new budget. Moss stated, he believed they would be purchased from this year's budget prior to July 1. Direction: There were no objections. Budget approved. Water/Bower Fund • KENAI CITY COUNCIL BUDGET WORK SE88ION APRIL 291 1998 PAGE 9 • • w It was reported, revenues were projected to increase by $20,000 more than originally budgeted. e er: It was noted there was a $7,000 increase overall. Direction: There were no objections. Budget approved. b. Airport Land System Fund Semmens noted revenues were projected to decrease. partially due to less interest earned as the balance of the fund had decreased due to costs incurred with the ARFF and the Animal Shelter. The Fund is projected to generate $27,000 and is in good shape. Acting Airport Manager Holland noted changes in the Maintenance & Operations due to last year's crack sealing project. A small pilot project for rubber crack sealing using a local company was included under Repairs & Maintenance. Semmens noted the contingency fund had been decreased due to lack of use. Ross noted the budget reflected costs (approximately $4,500) for removing the underground tanks. Holland also noted an increase in Operating Supplies is due to the purchase of sand and a pre -wetting agency for use on the runways. Direction: There were no objections. Budget approved. c. Airport Land Adaninistration It was noted, there was an increase in the salary due to the change in Airport Manager pay range. The requested laptop computer will be shared between the Manager and Assistant Manager in the event the manger wants to travel and make presentations. Ross reported there had been several inquiries in regard to the Dairy Queen. He considered one an active one. The real estate agents have told him it may have to be on the market for nine months or more. He hasn't actively tried to lease the building as he is hoping for a sale. Direction: There were no objections. Budget approved. d. Land Fund Holland reported this budget was essentially the same. There will be an attempt to replace the heater in the Flight Service Station. Holland continued, some additional isKENAI CITY COUNCIL BUDGET WORK SESSION APR1L 291 1998 PAGE 10 money was included in Professional Services to cover costs of engineering in connection with the heating system and to have some new aerial photos taken of the airport. Williams suggested an aerial photo be taken that is arge enough to include the whole city. Direction: There were no objections. Budget approved. e. Senior Citizens Title III Grant Fund Director Porter reported she had been notified the grant will be extended another year, however no written confirmation had been received. The Commission does not meet until June and they could change their mind between now and then. This is federal money. Direction: There were no objections to the budget and it was approved. f. Senior Citizens Borough Grant Fund Porter stated, like the Title III grant, they received word this grant would also be extended, but no written confirmation had yet been received. Direction: There were no objections to the budget and it was approved. g. Senior Citizens Title V Grant Fund Porter reported, the Borough Mayor has placed the same level of funding in the Borough budget, but they have not held all their budget work sessions at this time. She will know more in June. Direction: There were no objections to the budget and it was approved. h. Senior Employment Porter stated, this is the same as the other grants. Williamo asked if there were any concerns in regard to the operation of the Senior Center. Porter answered, there were no problems. It is a healthy program and serve a lot of senior citizens - more older elderly than the younger elderly. However, their targeted group is the older and more frail elders. Porter also noted they have held more evening activities than in previous years. The evening programs do bring in a lot more of the young elderly. Also, Porten stated, she believes the program is an excellent program and is well -recognized throughout the state. • KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 299 1998 PAGE 11 Direction: There were no objections to the budget and it was approved. MMA., DEBT SERVICE FUM a. Debt Service Funds Budgets Semmens explained, this is debt service on the Inlet Woods debt for which $238,000 was transferred into the General Fund. There is a deficit in the fund. The last payment will be made in FY2005. Direction: There were no objections to the budget and it was approved. IT MM S: ENTERPRISE FUNDS a. Boating Facility Fund Semmens reported the Boating Fund's revenues were projected to be down from last year's budget. This year, the actual revenues for 1998 will come in above budget because of a dock customer who purchased a large quantity of fuel, however that is not anticipated for the coming year. He also noted the eVenditures are up a little, but this is because of the way depreciation was figured. Semmens added, the Dock Fund will loose $91,000 (after depreciation) and will continue to, running out of cash during the year. When that happens, the General Fund will automatically subsidize it. General discussion followed regarding what could be done in regard to the boating facility. It was noted, when the facility was first opened, the city received five times as much for the leasing of the cranes, etc. It was felt, the decline in lease prices, etc... were due to the amount of fish and price for fish. Williams noted, when the facility was built, council wanted to assist the small operator within the industry and insure the general public have a launching area. It was not, their intention to loose money or subsidize. He suggested administration investigate if time is a way to bring the income from the facility back on an even keel or consider privatization of the dock. Rose reported, administration has had discussions regarding special revenue fund verus general fund. No decision has been made. In regard to franchising, the numbers they looked at, without some framework for what is wanted to do, would not provide a lot of meaning. He suggested the Harbor Commission and processors participate in developing an RFP. He suggested, the development of the RFP be • • KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 29, 1998 PAGE 12 staged for when both the dock leases are available (in two years): This way, there wouldn't be a conflict between operators and all would have an equal opportunity to submit proposals. Williams stated, he wanted the one crane to remain available to the public first. Williams noted a meeting would be held on May 1 with processors, DEC representatives, etc. regarding development of fish waste plant (at which the city will be the facilitator). Williams also noted there would be visitors from Sakhalin in the area on May 7 and invited council to meet them at City Hall around 1:00 p.m. There were no objections to the budget cad it was approved. b. Airport Terminal Fund Semmens reported this fund will generate a surplus this year. Revenues are projected to be up and expenditures are projected to be down. The fund balance is at . $1.5 million. Holland reported there were two major changes: an increase in janitorial services (he is planning to go out for RFP); and, upgrading of controls in the mechanical room for the boiler and air exchange system. Smalley asked if the airport could be made a non-smoking facility. Holland answered, relocation of a large exhaust to the smoking area has been considered. Bannock stated he would support the non -smoking -issue. Ross asked if council wanted the Airport Commission to review the matter and council answered yes. Direction: There were so objections to the budget and it was approved. Airport Commission is to consider tasking the terminal a non-smOkixg facility. c. Congregate sousing Fund Semmens stated, from a revenue standpoint, the fund is about the same (up a few thousand dollars). The fund will add $71,000 to fund balance, bringing it to approximately $485,000. Williams asked Porter if she saw any need for major repairs that would have to come from the fund that would require adding additional money to the fund. Porter answered, no (except for something unforeseen). She added, the building is in very good shape. Williams suggested, during the next budget session, 0 KENAI CITY COUNCIL BUDGET WORK 3E33ION APRtL 299 1998 PAGE 13 council consider continuing additions to the fund (over the $500,000 cap previously set), to a level of $750,000 or $800,000 to cover increasing costs for heavy maintenance. Porter added, she believes the city is doing very good in maintaining the building. There are annual reviews done professionally and nothing is going downhill iri the building. Porter noted, she did not anticipate any major problems with the building. Williams noted, as this surplus fund increases, some leveraging of funds could be done and a building addition constructed. Williams asked the status of the Continuum Corporation/Grasso lease. Ross explained, a letter was sent recently indicating they had not met the deadline to be under construction by May. The letter noted the council would be advised of that matter when the lease comes up for renewal. At this time, no response had been received. Porter also noted, they were requesting funds from the Legislature for a handicap, accessible van (which would not impede the council's CIP list of requeste. �M-- A 1-11-U I a. Land Sales Trust Funds Budgets Semmens explained, the funds spent in the fiduciary funds are what are transferred to other funds. The transfers are interest that is earned on contracts. Interest earned on the fund balance is directly recorded in either the Airport Land Systems special revenue fund or the General Fund. Semmens added, both the Airport Land Sales and the General Land are untouchable. Williams asked what happens with revenues from the sale of Inlet Woods properties. Graves answered, because the General Fund has been making the payments for the past ten years, it would be reimbursed from the sale of the properties. Williams asked, if there is a provision, or can one be developed, to allow to reach into the trust fund to buy land for a specific project. Williams added, at some time, the city would no longer have general land available for development in the core of the city. Williams requested his question be investigated. The May 1 I work session was canceled.. Bannock asked if administration planned to purchase the computers requested departmentally or in a group and perhaps get a better price or piggy -backing with state purchases. Semmens noted, the. computers would probably be purchased departmentally as he didn't think there would be much 0 • KENAI CITY COUNCIL BUDGET WORK SESSION APRiI.29, 1998 PAGE 14 of a break purchasing them as a -lot.. However, the city does receive government purchasing on the Dell computers (many of which have been purchased recently), Bannock requested this possibility be investigated. Direction: Administration is to investigate whether the city could purchase land, using trust bade and whether purchase of computers as a lot would secure lower prices. There were no objections to the budget and it was approved. A. 4/22/98 Budget Work Session Notes b. AML Fax Alert - WhatY" Can Do B fbrre May 12m. ITEM -8: ADJOURNMENT The budget work session ended at approximately 10:35 p.m. Work Session notes trans ribed and prepared by: Carol L. Freas, City Clerk woo -- •