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HomeMy WebLinkAbout1997-04-24 Council Minutes - Budget Work SessionKENAI CITY COUNCIL BUDGET WORK BESSION APRIL 24v 1997 KENAI CITY COUNCIL CHUBERB 7:00 P.M. gong -IL -PRESENT: Williams, Smalley, Measles, Swarner, Moore and Bookey. Bannock was absent. AnZE PRESENT: Freas, Graves, Burnett, Seumens, Ross, DeForest, Morris, Kornelis, Frates, Springer, Reetz, La Shot, Backstrom, Porter. O EARS-PREBENTs K. Scott, C. Ward, L. Measles, K. Heus, G. Steffy ECONOMIC FORUM UPDATES Colleen Ward and Kathy Scott gave a brief update of plans for the Economic Forum to be held on Saturday, April 26, 1997 at the Kenai Senior Center. They reviewed the day's agenda as well as information to be presented by Williams. They noted their program would include presentations from various industries in the morning and break-out sessions for smaller group discussion in the afternoon. The city budget information was reviewed by council. Swarner suggested the sales tax amounts owed to the city should be included for additional information. Scott explained, initially the attendees would be divided into smaller groups including small/medium retail; commercial fishing, agriculture, forestry, mining and construction; insurance/real estate; general services; professional services; transportation, communications, public utilities; and public administration. Scott asked if council wanted the city employees to mix into the other groups, have their own group, or move about. Ross stated he would like the department heads who would be attending to have the ability to listen to the groups and move from group to group. Scott noted, because registration was up, there was some concern the cost for food would pass the not -to -exceed amount determined by the sponsor. She asked, if the cost is more, would council approve paying for the additional costs. She did not think an additional cost would be more than $200. Council had no objections to paying extra costs, if any. Scott asked if council wanted a summary of the findings from the forum mailed to all attendees. Answer was yes. 0 KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 241 1997 PAGE 2 Kenai Chamber of Commerce Relocation Brochures: Laura Measles, Executive Director of the Kenai Chamber of Commerce discussed the Chambers plan to update their relocation brochure. she explained, the Chamber Board wants to update the brochure and pay for the costs through purchases of advertising space in the brochure. The advertising space would be sold to members of the Chamber. Costs for different sized spaces would be $500, full page; $300, h page; $200, h page; $125, 1/8 page; and business card -sized space. She added, the Clarion (who will do the printing) and Chamber will not make any money from the project. She noted, for $1,000, the City could have a two -page ad, with a picture, and logo. The City's advertisement would be in the middle of the brochure. SMeasles asked council if they had any suggestions as to what should be included in the brochure. Bookey stated he would like the City and Chamber to build a tri-fold brochure together, aside from the ad for the relocation brochure. He asked if Measles thought the Chamber would be interested in going together and developing a folded brochure. Measles answered, if funding was available. She also requested a representative from the city to be involved with the development/updating of the relocation brochure. Council agreed to use the $5,000 (included in the Legislative budget) for the development of a joint brochure of the city and Chamber (a two or three -fold brochure). Also agreed was to spend $1,000 for a two -page advertisement to be included in the relocation brochure. Williams suggested the t,�*i-fold brochure also be slipped into the relocation brochure: DIRECTION: Leave the $5000 in 5041 for Chamber Brochure. Remove $150000 for City Brochure from 4531. Leave in $3,000 in' 4531 for updating the city video. Remove $1,000 from 5041 for Tourism Marketing Council dues. Add $2,000 at Miscellaneous for donation to Bears Elementary BTA for upgrade of playground equipment (see discussion at Beautification Budget). Parent support Group - Councilwoman Swarner reported she had received a call from Representative Daviso office in regard to the Parent Support Group. Federal funding for the program would KENAI CITY COUNCIL . BUDGET WORK SESSION APRIL 291 1997 • PAGE 3 El • be expiring in August. There was some controversy within the HSS in Juneau of how to fund the group. in all areas of the State, except Kenai, funding is done by grants. However, the program didn't get budgeted statewide. Habitat for Numanity, water/Bower Project - Williams explained the group had received a proposal to place the water/sewer lines for $52,000. Williams noted he would like to have the project go forward and asked if the project could be funded through the water/sewer enterprise fund contingency. This would be a way to fund the project without doing an LID. There could be 11 houses constructed in that area after putting in the water/sewer lines. Ross noted Administration's concern that the project would have to be paid Davis -Bacon wages as it would be a city project. The question was how the city could legally buy water/sewer lines through a donation. Measles noted he did not think money could be taken from the water/sewer fund and donate it to a non-profit to build the lines. A donation could be made from the General Fund. Williams noted Habitat projects are done all over the country and the work is always donated. He suggested Administration investigate how similar projects are built without the concerns of the Davis -Bacon wage issue. Attorney Graves stated he would investigate the matter. Williams added, the labor for Habitat projects is always donated. The cost is the materials. Ross April a memorandum - Ross referred to his April 8 memorandum and noted additional cuts in municipal assistance and lower sales taxes expected. Ross reviewed his recommendations to cut some cost from the budget (which were included in the memorandum: a. Exclude hire of a lobbyist - agreed by council at previous work session. b. ADA modifications to city buildings - drop the amount to $25,000 - fund the priority items over a three-year period. c. Consider the RIP and delete the Battalion Chief position from Fire Department personnel. d. Don't fill the next vacant police officer position. e. Don't fund the personnel officer position and handle personnel matters between Kim Howard, Finance Director, Ross and Attorney Graves. Ross also stated department heads would have to justify filling future position vacancies and cap the health costs and stay • RBNAI CITY COONCIL BUDGET WORK SESSION arxiz za, 1997 PAGE 4 within the amount budgeted. He added, he will assign an employee group in -the fall to work on a health-care package. Those employees will not be department heads. Ross stated there may be one or two other employees to be recommended for the RIP, but would not be budgetary issues. RIPping two positions would save approximately $160,000 a year in personnel costs. Councilman Moore noted his concern that positions may be RIPPed, but then in a few years, with the ARFF developed, additional staff may be rehired -- the savings would be lost. Ross stated there would still be a savings on the salary. He added, the ARFF will not be a General Fund project and was supposed to be self- supporting. Williams stated he agreed the easiest way to lower the budget would be to cut personnel. He added, he thought it would be a . better approach to ask for volunteers as he did not want to force anyone into taking the RIP. Ross stated that had been done. He added, if the Battalion Chief chooses not to take the RIP, a Captain has stepped forward and said he would volunteer. Ross noted, no one was in a lay-off position. He also noted, there was no capital equipment included in this budget and no COLA. Ross stated, the duties of the Battalion Chief would be absorbed into the remaining staff of the Fire Department. Smalley stated he saw -the RIP as a voluntary measure and it could be effective in both the Fire and Police Departments. He added, the position would not be deleted. Ross added, he did not want to make up the costs (in the budget) by removing office supplies, travel, etc. Council agreed that shouldn't be done. Williams added, he wanted the deletion of personnel made under the best possible circumstances, using proper judgment. Williams asked if council agreed with the recommendations of included in Ross# memorandum with the caveats stated. Swarner stated she believed the City needed a personnel officer, but would look at it again in six months. Ross noted, the networking of city offices would not be recommended this year because of the labor involved. DIRLCTIONt Follow through with recommendations made in April e, 1997 Rose memorandum (with oaveate stated). • E KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 24, 1997 PAGE 5 BREAK TAKEN$ St35 P.N. BACK TO WORK: •: 4 6 P. M e cz!= BUDGET: Councilmen Moore and Smalley referred to discussions made during the last evaluation of Clerk in which council agreed to a two- step increase in salary. The second step should be reflected in the budget and would bring the salary to $54,411. Williams stated he recalled the discussion. Ross noted he and Semmens would not have been privy to that discussion, but would review the minutes. Clerk Freas stated she would supply the minutes. Clerk Freas noted the only big change in her budget was a $5,000 increase in Professional Services for the planned increase of contract secretarial services. DIRECTION: There were no changes to the Clerk budget (excepting the discussion in regard to salary). Budget approved. LE AL BUD,GET L Attorney Graves noted he spent considerably less than anticipated in Professional Services in regard to Inlet Woods litigation. He added, council could cut some there if needed. Council agreed the amount budgeted should be left as it is in case there was a need. Bookey questioned the $5,000 for bond counsel. Graves explained the amount was included in anticipation of the senior project. DIRECTION( There Were no Changes. Budget approved. Ross noted the salary and benefits would be reduced about $60,000. The salary estimated for the next city manager was included at $90,000. He added, the auto allowance had been negotiated in the past, but in this budget, it was included at the Code -allowed amount ($30 a month). If the position is advertised in the fall, there should be enough savings in the personnel account to allow latitude in negotiating a car allowance. Ross also noted the travel budget was lower and miscellaneous was lower. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 241 1997 PAGE 6 DIRECTIONS There Were no changes. Budget approved. Finance Director Semmens noted the budget was $30,000 higher than last year, however $17,000 of the increase would disappear as it was linked to costs in regard to the personnel officer changes. He added, his travel budget was increased but believed the increase was justified. Semmens added, the $5,300 in the 8064 account would be removed as it too was linked to the personnel officer changes. Semmens explained the decision for not going forward with the networking was because the quote was $98,000 which would not include the wiring costs. $110,000 was estimated to do the whole project, but did not include the cost for maintaining the network. There was no one on staff available for maintaining the network. In order to maintain a network, a staff person would have to be hired or the work contracted out. Williams suggested specifications be established for purchasing of any new computers in order to ensure all new computers purchased will be compatible with any future network system. DIRECTIONS Remove amounts in salaries and 8064 linked to the personnel officer changes. Budget approved. DIRECTIONS No changes. Budget approved. ,y 1 c Semmens explained the transfers in non -departmental are from debt services on Inlet Woods. Grants to agencies are pass-throughs and could fluctuate. Also, it was found that the city was under - insured in some areas. Those amounts have been brought in line with replacement costs. Semmens stated he would like to investigate JIA insurance as an alternative for insurance for the city. He added, he believes there would be benefits to the city for belonging to JIA beyond the price of insurance. There were no council objections. • KENAI CITY COUNCIL • BUDGET WORK SESSION APRIL 24, 1997 PAGE 7 DIRECTIONS eemmens is to Check 6536 the amount of Expended 6 Encumbered* quotes from JIA. Budget approved, as there may be a mistake in He is also to got insurance City Engineer Jack La Shot noted the biggest change in the budget was the $30,000 included in Professional Services for a new Comprehensive Plan. This amount would be used to match funds from the Borough to develop a Comprehensive Plan as the Borough has done for Homer and Soldotna. Ross noted, the $30,000 does not have to be spent this year, but can be encumbered. A professional planner would be developing the Comprehensive Plan. DIRECTIONS No changes. Budget approved. 8AFETY B-9polm iDIRECTIONS No changes. Budget approved. R A2:_ POLICEE D_$RALTMMt- Chief Morris explained the biggest change in his budget was due to funding included for a new records management system for police records. They are unable to receive maintenance/parts for their present Kodak system. They received a list of vendors for other systems and found an average amount -for a new system - is . $61,600. They are also requesting to purchase three personal computers to replace dumb terminals now used with the old system. The new computers will be needed to access the new records system. Morris also noted an increase in professional services due to increases in rape examinations. DIRECTIONS No changes. Budget approved. Chief Morris explained the biggest change is for the logging recorder. The present equipment has had lots of down times, parts are unavailable, and it is ten years old. This purchase was discussed during last year's budget hearings. Cost was. higher then -- prices for the equipment has come down. Bookey asked if the purchase of four personal computers was. 0 necessary. Morris answered, they will move the computers now in S KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 24, 1997 PAGE 8 Dispatch to other parts of the building, replacing the dumb terminals. The new computers will be a needed upgrade. DIRECTION: No changes. Budget approved. ANIMAL COIRAM BODaBTI Chief Morris noted the biggest increase was for utilities. if the new shelter is built, they estimated an increase of $7,000 for utilities. DIRECTION: No Changes. Budget approved. FIRL_ DLPARTMBNT RVIMT: Fire Chief Burnett explained the budget was higher in personnel, but down in maintenance and operation. There was also an increase in operation/repair supplies to cover costs to purchase fire retardant uniforms. enance and operations as there are less air wairbottlescneedinrease intoabetreplaced. Transportation costs were decreased as most travel in regard to ARFF has been completed. Burnett explained overtime may increase if staff is decreased by one. DIRECTION: No changes. Buaget approved. PUBLIC N—OR1K6—MINZ02MIgL RjW0XT s Public Works Director Kornelis explained the budget was decreased approximately $25,000. Costs for scanning blueprints was decreased to $4,000. Professional Services will be lower this year (last yearts budget included funding for the ADA survey). Kornelis added, funds were included in Machinery & Equipment for a printer for the autocad. DIRECTION: No changes. Printer printer, but no increase made in than what was already included), for autocad is to be a color budget for the printer (other Budget approved. Kornelis explained the budget was decreased by $7,000. Council questioned what amount was included for dust control. Kornelis .stated $380000. Williams noted Cinderella, Princess, etc. were in need of dust control now and requested the Department keepan eye on their condition. • ItBNAI CITY COUNCIL BUDGET WORK 8838ION APRIL 24, 1997 PAGE 9 D1R$CTtON: No abanges. Budget approved. Kornelis explained, $10,000 was placed in this budget for new street lights. He has a list of requests, one of which was from Karen Koester (copy included liCuciliisaa ce a light at Setnet in the VIP Subdivisionondsaudthis light last year during budget time. Williams suggested they go ahead with placing that light. Kornelis stated he would like to forward his request list (la lig�osc uncilAfor laterainost the stimate ummerg and bring that information back Lights to be added would be chosen at that time. Williams suggested council address the issue of new street lights next year. DIRBCTIONt No Changes. Budget approved* am am It was noted $16,000 needed to be added to 4538 for repair of the 966 loader. The repairs would be made instead of purchasing a new loader. DIRRCTIONt Add $16,000 at 4538 for repair of 966 loader, budget approved. RVILM813 13M)M '1'_t City Engineer La Shot noted the ADA contingency should be decreased to $25,000. Repairs mandated by ADA will be made over the next two to three years. Building official Springer explained the changing of lighting ballasts on the apparatus bay at the Fire Department was being mandated by the federal government. Halide lighting will be put in place which will save $7,000 in electricity costs. This will also be done at the library. DIRZCTZONt Deorease 8062, ADA Contingency to $25,000. Budget approved. LIBRAR 2MMI Librarian DeForest explained the 314 entry station will not be ADA approved. She also noted a ten -hour -a -week employee would be lost due to the loss of a federal grant (this employee worked KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 241 1997 PAGE 10 with Wildwood Correctional Facility). Swarner stated she thought the Library budget should be increased to keep the ten -hour -a - week employee. She noted, fine costs had been increased which could help pay for the person. Discussion followed in regard to Sunday hours. DIRECTION: No changes made. Budget approved. CREATION DEPA&M Recreation Director Frates noted there could be adjustments made to his budget in the fall in regard to hours of use at the Rec Center. They have been tracking the use, types of use, etc. and will use the information to cut some expenses. He noted the biggest expense for the Rec Center is public services. They are Up to $6,000. They include ski trips, etc. This year they will charge a fee to reimburse the city. DIRECTION: No Changes made. Budget approved. PARRB DEPAR MMU B-OD-G-RIS Frates noted costs were included to place a restroom at Beaver Creek. it was found that it would cost approximately $400,000 to move the Cunningham house to downtown and was cut from the budget. Williams requested Administration to send a letter to the owner explaining why the city didn't want the building (cost restraints, etc.) in order for the owner to go forward with -- disposal of the building. Frates noted funds were included in the budget to place a drinking fountain at the Memorial Park. DIRECTION: place riding lawn mover in Parke budget, removing it from Beautification budget (see discussion at Beautification budget). Budget approved. BEAUTIFICATION BnDC,m It was noted the riding mower listed at 8064 in this budget should be included at 8064 in the Parks budget instead. Williams noted the PTA at Sears Elementary was collecting funds to purchase new playground equipment for the school. They are needing to raise $21,000, have raised $7,000, and will be asking the Borough to donate $7,000. Williams requested council to include a donation of $2,000 for this purpose to offset the cost of the upgrade of playground equipment at Sears Elementary KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 24, 1997 PAGE 11 School. Council had no objections. The $2,000 should be included in the Legislative, Miscellaneous account. Frates requested $3,750 be added to the Beautification budget for the purchase of 30 additional banners. He explained, the Committee and banner makers had suggested 30 banners be purchased every year in order to change out 30 used ones (each year). Williams suggested 30 additional banners be purchased this year only. DIRECTION: Add $3,750 to the Beautification Budget at 2024l small Toole & Equipment for the purchase of 30 additional banners. Place purchase of riding lawn mover in parks budget and remove it from Beautification budget. Also, add $2,000 to the Legislative Miscellaneous account for a donation to the Beare Elementary PTA to go toward the upgrade of playground equipment at the school. • M►DDITIONAL BUDGET WORK 8ESIXONt Council set another work session for May 1, 1997 to be held in the Council Chambers at 7:00 p.m. . I ! '�Y_ 4, The budget work session ended at approximately 11:00 p.m. Notes prepared by: 40