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HomeMy WebLinkAbout1997-05-01 Council Minutes - Budget Work Session• • • RBNAI CITY COUNCIL BM)GET WORK 8E88ION MAY le 1997 KZNAI CITY COUNCIL CRIkK 7200 P.M. COUNCIL PR„EBEs_ Smalley, Williams, Bookey, Measles, Bannock and Swarner. ATAFB PREBMNTs Freas, Ross, Semmens, Graves, DeForest, Morris, Kornelis, Frates, Ernst, Burnett, Porter, and Springer. o=8-_ts8ENX.s Barry Eldridge and Leo Oberts Council reviewed the handouts distributed to them at the beginning of the meeting. The handouts included notes from the 4/24/97 work session; update of changes made to the budget during work sessions; 5/1/97 Graves memorandum regarding Applicability of the Davis -Bacon Act to water and Sewer Grant to Habitat for Humanity; draft letter to Maj. Gen. P. Brady, Ret. regarding the Fourth of July celebration; and draft information regarding a suggested Economic Development Committee. Finance Director Semmens distributed a second list of changes made to the budget document through council discussions during previous work sessions. It was noted, through changes made, the total changes to the General Fund were $75,612. Also noted was that the appropriated fund balance was $556,326. Airport Manager/RIP City Manager Ross reported there would be two RIPs in the General Fund. There may be some attrition during the year however. He also reported there would be a RIP given in the Airport Fund to Airport Manager Ernst. Through his and Ernst•s discussions, it was felt a change in direction needed to be made with the airport marketing. Ross noted there was no discredit being made to Ernst's work over his years with the city. However, they both believed a more aggressive direction for marketing the airport would be needed in the future. Ernst came to the conclusion it would the to the city•s best interest if he would take the RIP. Ernst was asked to step forward. Ernst explained the infrastructure of the airport was in good shape. He added, he would be glad to do more marketing, but he would prefer taking the RIP. It may be to the city's advantage to hire someone new to get a different perspective on the marketing of the facility. KENAI CITY COUNCIL . BUDGET WORK SESSION MAY 11 1997 PAGE 2 Ross added, he didn't expect there would be a great savings to the city in Ernst taking the RIP. The city would have to make a contribution. If someone is hired at his range and pay step, it would pay for itself. The city would pay its percent up front. Ernst's resignation would be effective December 31. He also reported, there had been no other positions requesting the RIP. Ernst also reported the taxiway project would be done and the ARFF project will be well on its way. He added, after the grant stage was completed, the project would gradually be turned over to the Public Works Department and the City Engineer. Bookey stated he would want to be make sure the projects were covered. Ross explained, that was why they were making the transition effective December 31. It will also give Holland time to be more familiar with the operations and Ernst would be active in hiring a new assistant. Amb-glance-Billing_System 40 Ross reported there has been a problem in collecting ambulance billings as only about 49% have been collected. Due to the collection problem, administration had been reviewing alternatives to improve the collection rate. City Attorney Graves explained that Kathy Lawyer and Sheryl Paulsen have been handling the ambulance billings, sending up to three letters to those owing. There are those people who don't have a lot of money, but still pay $10.00 a month to try to pay the amount owed and then there are those who have the funds, but just don't pay because they know the city won't sue them. He added, administration would like to apply more pressure without being a "gorilla." The manner in which they suggested to approach those who are not paying is to send the normal amount of letters informing the person of the amounts owed. If there is no response*, a letter would be issued from the Credit Bureau of Alaska. The Bureau would inform the person of the amount owed and that if the amount is not paid, the person's credit report would be noted. It will affect those people who have the funds to pay, but won't when they apply for loans, etc. Ross noted, cost for the city would be $500 to set up the account and $4.50 a letter sent. Measles noted, there could be people 110 who are filing with the insurance company, receiving payment from the company but keeping the money and not forwarding the funds to the city. He added, he thought this approach would be better KENAI CITY COUNCIL BUDGET WORK SESSION MAY 1, 1997 PAGE 3 than filing small claims. Also, there would be less cost to the city as the attorney would not have to spend as much time with the matter. Councilman Bannock suggested one of the letters from the city include a partially completed form in order to simplify the process for some of the users. Graves noted the letter from Paulsen included a lot of the information needed for a person to complete the form. Ross stated, in the investigation, it was found using the Bureau would be the most cost effective. DIRECTIONS There were no objections from council to use the Credit Bureau of Alaska in collecting unpaid ambulance fees. Budaet Product;on Finance Director Semmens asked if council thought there would be any additional changes to the budget document. If not, the final document would be printed. However, if there were to be more changes made during the adoption of the ordinance, he would prefer waiting until after those changes are made prior to producing the final document. Semmens requested direction from council. Williams noted council still needed to decide whether to build a new animal shelter from this budget. If they go forward with that, it would change the projection numbers. Measles stated, that decision would be made -later -on. Ross stated, an ordinance would be introduced during the next council meeting to cover costs for updating the site plan and bid documents in order to go to bid on the project. If the bids come in as reported by Kluge, the project would go forward. If the bids come in higher, they could be thrown out and an alternative design could be investigated. If that happens, the project would wait until next year. Williams asked if any personnel would be laid off next year. Ross stated, they would see if there was any attrition first. Lay-offs may have to be reviewed as an option based on whether the mill rate will be raised. Measles asked how difficult it would be to take the projections (prepared by Semmens) to a five-year basis and update it as 40 things change. Semmens answered it wouldn•t be a problem. He could prepare a mid -year budget review. K&IJAI CITY COUNCIL BUDGET WORK SESSION MAY 11 1997 PAGE 4 DIRBCTIONi Council requested a final draft of the budget be prepared for them prior.to the public hearing.of the budget ordinance. Also, a mid -year budget recap be prepared, stretching the projection to five years. Williams asked council if there would be any additional budget changes. Councilman Bannock distributed a listing of travel expenses included in the budget, excluding the Legislative and City Manager budgets. Bannock noted $86,000 had been budgeted overall for travel, which averaged to $860 per employee. He proposed the travel budget be re-evaluated and examine how the wants and needs of the citizenry are impacted by the expenditures. Bookey stated he agreed with Bannock that it was a large amount, but also that the majority of the expenditures would be used for training of the employees. Bannock agreed the training was i• legitimate, however he suggested they look at it as if there was no funding available for travel. Things would be done differently. When asked, Bannock noted he did not compare the new yearl's budgeted amount with the last budget.- Ross noted a lot of travel monies had been cut. Smalley stated he agreed to a point, but with the size of the municipality and the number of employees, he didn't think the budgeted amount was significant. Ross noted--the-airport-travel budget may increase with the - -- - marketing direction to be taken. Measles noted some travel has to take place -and that he believed the department heads and city manager wouldn't approve trips unless they were seen as a benefit to the city. Bookey stated he agreed with Measles. Bannock stated he agreed with that and that was why he excluded the Legislative and City Manager budgets as the council were responsible for those budgets. His intention was not to micro - manage. Ross stated, conference travel might be decreased or eliminated, but he felt training trips needed to be there because in the future, it would be evident what was missed because the employee was not able to keep up-to-date with training. DIRSCTIONI No changes made to travel budgets. Davis-B co jHabitat for Humanity: 0 Williams referred to the memorandum distributed in regard to the need to pay Davis -Bacon wages for Habitat projects in which the KENAI CITY COUNCIL BUDGET WORK SESSION MAY 1, 1997 PAGE 5 city would be involved. It was noted that the bid to do the placing of water and sewer for the proposed Habitiat project did not include Davis -Bacon wages. With Davis -Bacon wages added, the bid would increase by approximately $5,000. DIRECTIONS No donation was to be made for the purpose of placing water/sewer lines for a Habitat for Humanity building project. Fourth of July C_e 1_e,krat ig Williams referred to a draft letter to Major General Patrick Brady, Retired who had been invited to attend the Fourth of July festivities and be guest of honor for the celebration. The letter was written to thank Brady for accepting the invitation and to inform him of the schedule of events in which he would be involved. Williams also noted the city would be hosting a dinner for Brady and several other people. The dinner would be held at the Elks Lodge for an estimated cost of $300. • DIRECTION: There were no objections or comments from council. Williams referred to information distributed which outlined the need and duties of an economic development committee. He added, the formation of such a committee was discussed during the Economic Forum. The committee would be comprised of six business people from the community and one council member who would - investigate potential areas for economic development in Kenai. Williams noted, the city would not supervise or oversee the committee; there would be no conflicts with the Open Meetings Act; the committee might report to council from time to time; if funding was needed for the operation of the committee, the city would participate up to a maximum of $15,000 if matched by the business community and the Department of Commerce or others through economic development grants; the Chamber might act as the bookkeeping agent for the Committee; the city might act as a pass -through agent for any grants received; and the city would lend its support through updating and producing the city video, providing government -to -government contact, furnishing space for meetings when possible and if necessary, providing necessary information on city lands, airport operations, etc. Williams asked if council had any comments in regard to the proposal and if they supported the proposal. Swarner stated she thought it was a good idea, but was concerned the members might KENAI CITY COUNCIL BUDGET WORK SESSION MAY 1, 1997 PAGE 6 stagnate if the committee continued. Williams stated, that etas why he suggested the Committee be formed for one year. After one year, the continuation of the committee could be reviewed and a decision made whether to continue the operation of the committee, as well as whether to continue funding for its operation. A short discussion continued in regard to the amount of funding; i.e., whether to cap it or lessen the amount to $5,000. DIRBCT=ON: Council had no objections to the formation of the Committee and no change was made to the funding cap at $15,000. Leo Obarts Discus8i_o„- Mr. Oberts informed council the Pillars Project would be very big for the community. The Pillars Park was to.be open July 1. There would be places for small businesses in the area as well. Leal Estate Co misRi ns; Councilwoman Swarner referred to comments made during the Economic Forum regarding real estate commissions made to brokers who sell citylands. Williams noted it is easy to purchase property from the city and the city is not in the real estate business. At one time, the city had a large amount of property available for sale, but now there is not much available. Swarner suggested the public be educated because that the city does not have a large amount of land available for sale, etc. She suggested a mailing to all the citizens. Smalley noted, that many of the items brought up at the Forum were issues that the city has already dealt with or are dealing with. He suggested the city may not have done a good enough job in reporting to the community. Williams suggested the media could be asked to do a city page, Bookey stated the biggest eye-opener to him at the Forum was what business people in the city didn't know about what was going on in the city. The discussion continued and it was noted that the city has put information out in the newspaper before, but even if it is there, it does not guarantee people will read it. Other Items; Measles noted he would not be at the May 7 council meeting. Bookey reported Kathy Tarr was hired as the new director at the Kenai Visitors Center. He added, he believed Tarr would work out very well. She is real aggressive and changes would probably be seen at the Center. • KBNAI CITY COUNCIL BUDGET WORK SESSION MAY 1l 1997 PAGE 7 Tor The work session adjourned at approximately 8:40 p.m.. Notes transcribed and prepared by: A� ay cou"C'. �� v�• ,, 4 dwom—