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HomeMy WebLinkAbout1996-03-27 Council Minutes - Budget Work SessionKENAI CITY COUNCIL • BUDGET WORK SESSION March 27, 19% 7:00 P.M. Kenai Senior Center COUNCIL PRESENT., Smalley, Williams, Measles, Bookey, Moore, Bannock and Swarner. STAFF PRESENT-. Freas, Graves, McGillivray, Kornelis, Sweeney, Manninen, Ernst, Clark, Morris, Springer, Burnett, McNair, and Reetz. OTHERS PRESENT: Henry Novak (CICADA), Peggy Gill Thompson (Kenai Art Guild), Carol Manninen (Frontier Training), Barry Eldridge (Habitat for Humanity), Tony Doyle, Bob Peters, Melissa DeVaughn (Clarion). The work session began at approximately 7:05 p.m. Mayor Williams introduced the council and briefly highlighted elements of the manager's budget cover letter. Williams also reported the council toured a number of city departments prior to the work session. Williams reported that due to cuts in state funding, there were some requests by outside groups for donations from council. He requested council listen to those requests, ask q q questions, etc. and then council would consider the requests and information received when they got to those areas in the budget. OUTSIDE REQUESTS: Kenai Arts & Humanities Council/Request for New Roof - Peggy► Gill Thompson - Introduced herself as President of the Council and distributed the Council's Three -Year Maintenance Plan for the Fine Arts Center. Thompson referred to information distributed to council in their budget packets which discussed the need for a new roof to be placed on the Fine Arts Center. She added, she felt the Center was a viable entity to the city as they work with the Visitors Center, etc. and offer classes to visitors, as well as the community. The Center also offers a venue for local artists to display their art. Thompson stated the Art Council would be replacing a window and doors in the Center. The Art Council cannot afford to put a new roof on the building. She referred to Wm. J. Nelson's letter included in the information, and noted his recommendation was that a new roof was needed and the building was worth the cost of the project. Helen Brown - Introduced herself as the gallery coordinator. She coordinates art shows, 40 exhibits, and workshops for adults and children. Kenai City Council Budget Work Session March 27, 19% Page 2 Linda McNair - Requested council to consider the benefits of the Center to the community as a historical building in the Old Town area. -Also, the Art Council has not received any funding from the city, even though state funding has been cut. The Art Council has maintained the budding on their own for a long time. It is important to remember that as the schools cut art classes, the community has a venue to take up the need and have a place to display their art. John Roven - Introduced himself as the President of the Kenai Potters Guild. He spoke with contractors in regard to the roof and has inspected the roof a number of times. Roven added, he is the studio coordinator. He thanked council for the repair to the roof made during last summer and added, the replacement of the roof would be a matter of the city maintaining their existing property. UP Councilman Bannock asked if the repair work done last year was only good for one year. Thompson answered she spoke with the contractor who did the repair work (Chumley). He stated to her that the roof should be replaced and it should be done now before the • damage worsens. Roven added, the bid prices (included in last year's correspondence and council discussions) reflected the amount of work that could be done, i.e. different roofing styles. It would be up to council to decide what they felt would be the best thing to do -- new trusses with a metal root etc. ACTION: Mayor Williams instructed Clerk Freas to include the bid information which council reviewed last year, along with inspection reports for the next work session. Street Lights/VIP Subdivision - Karen Koester - Distributed a copy of a letter she sent to the Public Works Director in ID November, 1"S. The letter stated the concerns of herself and neighbors that there were no street lights on Set Net Drive and Set Net Court within the VIP Subdivision. Koester added, the information distributed included a map and petition signed by neighbors on Set Net Drive/Set Net Court, as well as Cetacea and Bowpicker. Koester stated there are no sidewalks in the area. Paving they requested a few years ago allows drivers to go faster, there are moose in the neighborhood that are hard to see in the dark. The need of the lights would aid the children in the area to walk safely from their homes to the bus stops, etc. The places they suggested to place the lights were Kenai City Council Budget Work Session March 27, 1996 Page 3 close to electrical connections and, they thought, would be cost effective to place them in those areas. Koester asked for the criteria for determining where lights would be placed and when. She also requested to be notified of when the lighting budget would be discussed in order that she be in attendance. Councilman Smalley asked if these streets were included on Kornelis' list for new street lights. Kornelis answered two of the lights were on it. Kornelis further explained that he had placed ten new street lights in the budget and requested $30,000 for the purchase and placement of the lights. The budget was cut to $20,000. He was unsure how many lights he could purchase and place for that amount. Williams suggested two lights be placed this year (in the Set Net area) and another next year. Williams asked Koester what the first and second choices would be for placement of the lights. Koester answered (1) by the cluster box at the Set Net Drive/Set Net Court intersection, and (2) the next curb. Council had no objections. Habitat for Humanity/$309000 Donation - Colonial Drive Water/Sewer Connections Barry Eldridge - Reviewed the information included in the council's packet in regard to homes built by Habitat for Humanity in Kenai and Soldotna. Eldridge reported the Borough donated five lots along Colonial Drive on which to build. The homes are built through donations, volunteer labor, etc. The engineering plans were submitted to the City of Kenai and DEC for review and both have approved them. They hope to proceed with their project in the spring. Eldridge further explained they first hoped to get funding from Juneau of about $120,000. They know now that will not happen and are requesting a $30,000 grant from the City in order to place water/sewer connections to the properties. The project estimates were reviewed by council and Eldridge. Mayor Williams noted that if an LID was formed, the cost to the city would be approximately $56,250 (25% assessment). Kenai City Council Budget Work Session March 27, 1996 Page 4 Cook Inlet Council on Alcohol and Drug Abuse (CICADA) - Henry Novak - Introduced himself as the director of CICADA. Novak referred to the information distributed to council in their packets which explained the need, use and mission of CICADA. Novak added, their funding had been cut by $50,000 for a two- year cycle. They asked the state what they should do to get additional funding. They were told they expected to see interest and monetary support from the local governments. Through discussion it was learned that CICADA clients are from Nikiski, Kenai, Sterling, Soldotna, Moose Pass, Kachemak City and Homer. Kachemak City offered a grant of up to $10,000, but found their code would not allow the donation due to CICADA being situated in Kenai. They will be amending their code in order that they may donate next year. Councilwoman Swarner asked if they have contacted Soldotna and the Borough. Novak answered this presentation was his first. Swarner encouraged him to speak to the other cities, and Sterling/Nikiski businesses. 0 Swarner asked how much he was asking for. Novak stated they were asking for help from the cities and areas they serve. $85,000 is their deficit at this time. The state has told them they need to Mind that much before they will consider granting more funding to them. ACTION: Mayor Williams noted the third work session was scheduled for April 10 and final recommendations of council would be decided April 18. The public hearing on the budget ordinance has been scheduled for May 1. Williams suggested Novak make presentations to the Borough and other areas they serve. Report back to the City Clerk with any responses he receives. The information will be forwarded to council for their consideration on April 18. Frontier Training Center & Early Intervention Program - $10,000 Donation V'Vinnie Crosby - Introduced herself as the Director of Frontier Training and noted Carol Manninen was also in the audience. Kenai City Council Budget Work Session March 27, 1996 Page 5 Crosby explained Frontier Training is a non-profit agency for developmentally delayed children. They operate from 60% in grants and the remainder from United Way and funds they generate. The state is requesting more matching funds from local governments. They have written to Kenai, Soldotna and the Borough asking for financial help. The program most needing help is the Early Intervention Program. They requested $10,000 to match funds in order to have a 20 hours -a -month specialist, purchase toys, equipment, staff and family resources. Since July, 1995 they received 74 referrals. Their current enrollment is 30 and have a wait list of 21. Approximately 1/3 of their clients are from Kenai. The remainder are from Soldotna and the Borough. They have not received responses from Soldotna or the Borough at this time. They have not contacted businesses or chambers of commerce in Sterling or Nikiski. Williams asked how much of their budget would be cut by the state. Crosby answered she did not have that information, although they have heard it would be a maintenance . level to a ten percent cut from their last year's budget. They probably won't find out until the closing of the Legislature. Carol Manninen - Explained that without funding, they will not be able to serve the 20 to 21 children on the wait list. Adding the additional staff member would allow the wait listed children to get into the program and have a speech therapist on staff. Williams reminded the audience members that when they are speaking to legislators, remember to talk about how the cuts in municipal assistance and revenue sharing hurt__ the communities. The municipalities are being taken advantage of by the state's placing funding responsibilities to the cities and borough governments. DIRECTION: Williams suggested they make presentations to the Borough and City of Soldotna. Keep in touch with the City Clerk and pass information on to her for council. The information should be to council for their April 18 meeting. Bannock asked if they charge for their services. Crosby answered no and added they hope not to come back to the cities each year. There is movement now to make their help reimbursable through Medicare. 1�1 • Kenai City Council Budget Work Session March 27, 1996 Page 6 BREAK TAKEN: 8:07 P.M. BACK TO ORDER: 8:25 P.M. Mayor Williams reviewed the manager's cover letter, highlighting the request for a COLA increase of 2.7%; PERS increase; a possible $9.00 increase in congregate housing rent, etc. Councilwoman Swarner asked if the changes suggested by the employees' staff review were included in the budget. City Manager Manninen answered they were all included in the proposed budget with the 2.7% COLA increase. RENUE &APPROPRIATIONS SUMMARY Finance Director Sweeney referred to the last column and stated that if revenues are come in higher than estimated, other requests for equipment, etc. may be considered. Williams noted that if an agreement is worked out with the Borough in regard to the new animal shelter, the revenues and appropriations would increase by $200,000. Manninen explained nothing was budgeted for a new animal shelter. Williams corrected . his statement with that information and noted a shor tage would show of $300,000. WORKING CAPITAL SUMMARY - No comments. FIXED ASSET ACOUISITION SUMMARY - Mayor and Council reviewed. Comments were: Shoe - Councilman Moore noted an addition error under "Shop." The total should be $10,479 instead of $34,400. Sweeney noted the error and added the antifreeze recycler cost was also incorrect and should be $2,845. Sweeney stated he would correct the errors in time for the next work session. Senior CitizeWBorough Fund - Moore asked if training workshops should be included in the Fixed Assets or should be included in another place in the budget. Sweeney noted it was a typographical error and he would correct it. It needs to be listed under training. Clerk - Councilman Moore asked for a brief explanation of the imaging work stations. Clerk Freas explained the imaging would be used for records management of old and new documents. Last year's budget includes funds to purchase a system with approximately three work stations. The $10,000 in the new budget would hopefully purchase three additional work stations. The amount was a ballpark figure. • Finance - No comments. \ Kenai City Council Budget Work Session March 27, 1996 Page 7 Ron-—epartmentalll - Sweeney briefly explained placing a local area network in city hall would allow the sharing of data files, purchase of multi-user programs and electronic mail. He hopes to have a network that would provide read-only access to the accounting computer. The cost would include purchase of one computer to serve as a file- server, cabling, and access cards for the individual computers already in city hall. A consultant would be hired to put it all together. There would be an added increase in the future for a LAN administrator. That person would be a contractor working with networking software. Moore suggested cabling would be a big expense. He also asked if all the computers in city hall were upgraded enough to be able to network. Sweeney stated he did not know. Someone would have to determine that. There are 12 computers in city hall. As the system was expanded, it would include the fire and police stations. Fire and police should have their own LAN within their building and then the buildings could be connected. • Councilman Smalley stated a small dish could be purchased to access both buildings to the system. Councilman Measles asked why they would need a separate LAN as they should be able to work off the same file server. No objections. Planning & Zoning - Purchase of a laptop computer was discussed. Kornelis explained the computer would be used to take minutes during committee and commission meetings. A short discussion followed. No objections. Police Department - No comments. Eire Departm__eentt - Councilman Smalley asked if the cutter/spreader and circular saw could come out of another fund. Chief Burnett answered it would come from the Airport Fund. Communications - Mayor Williams noted that during their tour it was pointed out to them how much the logging recorder was needed. 0 No objections. Kenai City Council Budget Work Session March 27, 1996 Page 8 Animal Control - Discussion followed regarding the purchase of a new truck and animal box. Mayor Williams asked if the purchase could wait until next year's budget. Kornelis answered the present truck had approximately 100,000 miles on it. The truck is a 1989 model and gets a lot of use. If they were not able to purchase a new truck, they would like to have $500 to paint the box. Councilman Smalley asked if the old truck had been experiencing a lot of major maintenance problems. Kornelis answered he knew of no major problems. He added, the animal box cost was $9,400 and the cost of a new truck was $25,000. It was determined the purchase of the truck would be held until the 1997/98 budget. However, if a major problem came up with the truck, the discussion should be brought back to council. Council did approve the $500 for painting the box, included under Shop/Repair & Maintenance. Public Works Ad=inistffigon - The purchase of two personal computers was discussed. Kornelis explained one of the computers was to replace the Administrative Assistant's present computer which is an upgraded 286. The computer has been having problems. The other computer is to replace the City Engineer's present computer. They discussed upgrading it, but the cost was estimated at approximately $1,500. They felt it would be better to get a new computer. No objections. Sko,R - Previously discussed. Streets - Councilman Bookey asked what vehicle the snow plow would be put on. Kornelis answered the auto car. No objections. Building - Kornelis explained the automatic doors were requested by council. The remodel at the Fire Department was explained by Fire Chief Burnett. Burnett stated OSHA requires a separate room where the ambulance can be pulled in to remove equipment, etc. for sterilization after handling calls where there may be a large loss of blood. 0 Kenai City Council Budget Work Session March 27, 1996 Page 9 Building Inspector Springer explained the Mustang sewer jet is a portable machine to run through clogged drains. They could have used it approximately ten times in the last year. No objections. L,ib� - Acting Librarian McNair explained the reader/printer is used for reading microfiche/microfilm of old magazines and newspapers, genealogical information, etc. The reader/printers are used all the time. They charge for the paper used. No objections. Street LiLhts - Councilman Bannock questioned why ten lights would be replaced in Inlet Woods if some of the lights are where there is no development. He would rather cut the amount of lights down and only place where there is development and assessments are being paid in order to cut down on vandalism and cost to the city. Kornelis explained he would like to purchase the poles and lights now because they will be cheaper. The ones not used would be stored until needed. Bannock stated he would prefer placing six lights in Inlet Woods and add four new lights to the new light list. He added he had an objection to placing street lights at property which has been foreclosed on by the city. Councilman Moore noted that there would be more development going on in that area during the summer. Williams explained that the poles and lights were originally placed in the subdivision. However, because they weren't in areas where they were needed, the power was turned off to them and then they were vandalized. They would be replacing only those lights close to where there is developed property. Bannock added, he did not think it was a good thing to purchase extra lights and then store them. Direction: Kornelis is to give closer scrutiny to the replacing of the lights and where they will be placed. ecreatioa - No comments. Parks - The purchase of a snowmobile and roller/compactor was discussed. Director McGillivray explained the equipment would be used to set cross-country ski trails for use by community members as well as KCHS ski teams. It is a new sport at the school. The city would control the use of the snow machine and it would be operated by one of the Kenai City Council Budget Work Session March 27, 1996 Page 10 city employees. The concept has been discussed with the golf course owner as the ski trails would be on the golf course. They have worked out the liability concerns with the schools. The city's liability would be covered by its insurance. McGillivray added, ongoing cost would be minimal. The snow machine should last for a number of years. Cost may be incurred to replace signs; however, he believes it would be a minimal amount. Councilman Smalley asked if the machine would be taken to the course on a trailer instead of driving it on the streets or side of streets. McGillivray answered yes. Councilman Bookey stated his concern that he was not comfortable with the matter as council had not discussed it previously. McGillivray stated the idea had been discussed by the Parks & Recreation Commission. Bookey stated he did not like buying a snow machine if an animal control truck could not be purchased. Councilman Smalley stated he would support the purchase as it is a major city activity. He believed the trails would be used a lot by the community and it would enhance the Parks & Recreation activities. Councilman Bannock asked if the costs would be Daubenspeck money eligible. McGillivray answered he believed it would. Bannock added, the city would be funding the capital cost. The Kenai Peninsula Aerobic Sports Program would be a user. They presented the concept to the Parks & Recreation Commission and told them how popular the sport is and how much the trails at Sky View are used. Bannock stated he agreed with Smalley and would support the purchase. No objections. Congregate Housing Fund - Mayor Williams questioned where the sidewalks were to be placed. Manninen explained between the back door of the Senior Center to the new solarium and from the hallway to the side door of the solarium. No objections. Water and Sewer Fund - Councilman Bookey asked what was wrong with the present telephoife system. Kornelis explained there have been problems with it as it is an old system. The funding would replace and upgrade phone lines to connect from the new wellhouse to the computer which controls the wellhouses. The new system would include an intercom to connect the shop crew building and warm storage buildings (with a pager). • Kenai City Council Budget Work Session March 27, 1.996 Page 11 • 0 Councilman Bannock asked if would be better to lease the system first as was done with the city hall system. - Kornelis stated he did not know but would check into it. Councilman Smalley asked if the snow blade would be attached to one of the STP vehicles to keep their area open. Kornelis answered it would be used to move snow in order to get into lift stations, etc. Last year a blade was purchased to put on their truck. It didn't fit and was put on another truck. The funds to purchase the blade would be split between the water and sewer fund, as would be the new phone system. Direction: Kornelis is to check on leasing the phone system. No objections. Sewer Treatment Plant - Kornelis explained the flume building is a structure to enclose the outfall. No objections. Airport Lan System Fund - Airport Manager Ernst explained the laser printer would be purchased to replace Kin Howard's present printer. It has not been working properly and cannot be repaired. Williams stated his concern that printers may be purchased which are not up-to-date and noted an dot-matrix printer to be purchased. Kornelis explained the dot-matrix printer is needed to print purchase orders which require an impact printer. No objections. Senior CitizensMorouah� Fund - Discussed above (remove training workshops from fixed asset and place in training and travel). Councilman Bannock noted that several commissioners had requested to travel during the last few months. He felt it necessary to address if commissioners could travel and how much would be funded for that travel. Mayor Williams stated it is a code requirement for council to approve travel by commissioners. Clerk Freas explained that she does budget transfers to whatever department the commissioner travels from. She suggested funds be placed in the appropriate department for commissioner travel. Councilman Measles objected and added council had decided some time ago to keep the Kenai City Council • Budget Work Session March 27, 1996 Page 12 money in their miscellaneous account in order to control the travel of commissioners as well as to protect the funds so they are not spent for someone else to travel. Councilwoman Swarner asked how much was spent by all departments for travel in the last year. Sweeney stated he did not have that information, but would have it available for the next work session. Direction: Sweeney to calculate the total amount spent on travel for last year and have the information available for the 4/2/% work session. ObLaerk - No objections. I„ egi ative - No objections. Legg, - No objections. • City Manager - No objections. Finance - No objections. to Land Administration - No objections. Planning & Zoning - No objections. Police Department - No objections. Fire Dep rtment - Williams questioned the travel for aircraft rescue. Chief Burnett explained the cost was due to having to send employees to Dallas for training. No objections. Communications - No objections. Animal Control - No objections. Public Works Administration - No objections. 0 Kenai City Council • Budget Work Session March 27, 1996 Page 13 Safety - Councilman Moore noted there was an addition error in the safety budget. Direction: Sweeney to correct addition error. Shy - No objections. Str, Bets - Councilman Moore noted there was an addition error in the streets travel budget. Direction: Sweeney to correct addition error. Mayor Williams requested Sweeney to check to be sure all amounts are correct. Buildin s - Springer explained the facilities repair seminars are given in Arlington, Virginia. Bookey asked what benefit to the city would there be for him and/or Steven to attend the seminars. Springer answered the seminars are in regard to maintenance management. He added, there was a possibility the seminar would be offered on the west coast also. Bookey stated he believed that if it was a basic repair course, both • tin Springer and Steven should have had that experience prior to getting the jobs. Kornelis explained they are trying to improve the training and reminded council that the tuition for the classes were also included in the budgeted amount. Springer explained the tuition was $900 for the course and is offered six times a year. Bookey stated he had a problem with the travel/tuition for this seminar. Smalley asked if it would be possible for them to attend a seminar closer to Alaska which would be less expensive for airfare. Springer answered yes. No objections. Libra y - No objections. Recreation - No objections. Parks - No objections. Boating Facility Fund - No objections. Water and Sewer Fund - No objections. 0 Kenai City Council Budget Work Session March 27,1996 Page 14 Airpart� s&A End_ - Mayor Williams suggested the amount for fire training center travel should be $3,000 instead of $1,000. Burnett explained their travel for the fire training would be completed before July. Airport Manager Ernst agreed that most of the travel will be completed prior to the start of the new budget. Councilman Bookey questioned the travel for DBE seminar, etc. Ernst explained it was in regard to Disadvantaged Business Enterprises which Kim Howard manages. No objections. Se.,,enior CitizensBorou$h_, Fund - No objections. CA_ PITAL IMPROVEMENTS SUMNIARRY M_, u,., acipal_ Park Rest�ms - Mayor Williams questioned the placement of two additional restrooms (which had been discussed previously by council). McGillivray explained they were not put in the budget. Sweeney explained McGillivray requested three restrooms at a cost of $30,000 each. The restroom for Municipal Park was included in the FY98 budget. The restroom for the tent campground was placed in the FY99 budget and the restroom for Beaver Creek Park was included in the FY2000 budget. Cost for the restrooms were set at $20,000 each. McGillivray stated they discussed appropriating the funds into a- construction account and then Parks would assume _the maintenance costs in their budgets. - The new restrooms would include ADA requirements. Sweeney stated the FY97 restroom is in the budget and the other years are flexible if an adjustment is necessary. Williams noted the additional picnic pavilion was not included on the list. No changes made to the Capital Improvements Summary. GENERAL FUND Revenue Sharing - Mayor Williams noted the revenue looked fairly good and asked Sweeney why he was being so conservative. Sweeney stated he thought revenue would be substantially less (personal property taxes and receipts), although property tax and e real estate tax is moving forward. Sales tax has shown little change in the last year. • • Kenai City Council Budget Work Session March 27, 1996 Page 15 Sweeney reviewed the interest earnings and added if interest rates pick up, it could allow council to be requested to fund some of the items removed from the budget and placed in the unfunded requirement list. Municipal assistance and revenue sharing was cut 8%. Councilman Moore asked if the interest rates were fixed for two years. Sweeney answered yes and the investments were staggered. Expenditure Su_mmajy - No changes. App opn_ation of Fund Balance - No changes. Tax Revenues - Mayor Williams noted the sales tax amount noted for the city was 3%, not 5%. Councilman Moore noted there was a $600 difference in the "Real Property, Current" column showing on page 39 and page 40. Councilman Smalley asked which was the correct figure. Direction: Mayor Williams requested Sweeney check which "Real Property, Current" was the correct amount and change the sales tax collected to 3%. Licenses. Permits & Services - No changes. Federal. State & Borough Assistance - Williams stated he thought the fish tax received by the city was 2%, not 4%. Councilman Smalley agreed it believed it was 2%. It was noted revenue was listed from gaming in the amount of $1,500. Council questioned this as they were unaware revenue was received from gaming. Sweeney stated he was unsure why it was listed but would check into it. Direction - Sweeney was asked to check and clarify the fish tax percentage to the city as well as receipt of gaming revenue. Miscellaneous Fees. Fines & Property Usage Revenues - No changes. Interest. Donations. Leases & Other Miscellaneous Revenue - fi.ce. r.. r.�.- page 47 spread sheet includes $29,600 for rents and leases and Sweeney stated he didn't itemize everything and the amount w spreadsheet on page 47. Moore asked which page the council was page 47. Councilman Moore noted page 48 omits it. is in the total on the was approving. Answer Kenai City Council S Budget Work Session March 27, 1996 Page 16 • Tmsfer-& In - No changes. Mayor Williams requested Sweeney to explain the change in PERS for all employees. Sweeney stated the required contribution rose from one percent to six percent. It could rise again in the future. The amount is based on the number of people retiring in a given period. The employees do not pay a higher rate. Councilman Moore asked if an actuarial could be obtained. Sweeney stated it could, although they are hard to understand. Mayor Williams asked what the potential would be for another increase in the next rive years. Sweeney stated he did not know, although a consultant could be hired to research PERS or order an actuarial. Direction - Williams requested Sweeney to obtain an actuarial so that forward planning can be done. • Council will begin with the City Clerk budget on April 2, 1996. Work session ended at approximately 9:55 p.m. Notes prepared by Carol L. Freas, City Clerk.