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HomeMy WebLinkAbout1995-04-12 Council Minutes - Budget Work Session• RUM CITY COONctL 1995-96 BUMBiT WORK 8888ION URIL S2, 1098 KNNAr BUZOR MUR The April 12, 1995 work session was called to order by Mayor John Williams at approximately 7:02 p.m. Council present were: Smalley, Measles, Williams, Bookey, Swarner,-Monfor (arrived at 7:15 p.m.) and Bannock (arrived at 7:30 p.m.) Staff present: Freas, Graves, McGillivray, Morris, Brown, Ernst, Porter, DeForest, Manninen, Kornelis and Burnett. Others present: Clarence Ladd, Ethel Clausen and Kim. Booth. DISCo881991 KLNAI RIVER Dt8Cp88IONt Mayor Williams reviewed the remarks made by Governor Knowles during the Anchorage Chamber of Commerce luncheon on Monday, April 10, 1995. A copy of the Governor's speech, along.with the Governor -approved projects on the. Kenai River were distributed to Council with their packets of back-up information for the budget work session. Williams stated the intent of the Governor is to allow more fish into the River and save the habitat. Williams asked Council if they should address the Governor by letter as to the City's feelings about _the .intent .of his plan... What .the __Governor _is proposing is the very issue the City has put before the Assembly in regard to the overlay ordinance. The ordinance itself cannot correct the habitat degradation when other sources are increasing the problem. Bookey stated he was amazed at the Governorls comments. The Governor went a different direction than what he expected. Bookey added he does not understand how more fish can be.added to. the River and the River be.maintained. He understands the importance of tourism to the area, but commercial fishing is very important to the area also and cannot be overlooked. Williams reported during discussions he -had with Mayor Gilman, Gilman stated he did not think the ordinance would come for a vote anytime in the near future. Williams added, he believed the City will have to keep their attention on the ordinance. On, Tuesday night the Assembly will haye.another work session (5:.00 KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 2 p.m.). The purpose of the meeting is to discuss the issue of the lower five miles of the river. Assemblyman Navarre .has come to realize that the lower five miles will be a problem if he continues to force it. Williams also reported another attorney is drafting an opinion in regard to the ordinance. The ordinance that was passed in 1984 was for zoning powers. The Assembly cannot go around that ordinance without rescinding it or modifying it in order to enact the overlay ordinance. Williams added he wanted to insure that he and the Council are all going in the same direction in regard to the overlay ordinance and asked whether he should respond to the Governor. Swarner stated it should be stated the Council is responding because of the economical value of the fishing and the fallacy of putting more fish in the river being good for the river. There should be a lot of thought put into the response. Williams stated he would respond to the Governor and requested councilmembers, staff, etc. attend the Assembly work session on Tuesday. Williams stated he discussed the matter with some of the Assemblymembers and feels there are four possible '$no" votes -- Glick, Merkes, Brown and Wiley. He also believes the Mayor would veto the ordinance. Monfor asked, when talking about voting against the ordinance, is that forever or until the City of Kenai is removed from the ordinance? Williams answered to stop the entire process and if that is not possible, to amend the ordinance to remove the City from it. Williams added the Governor is planning to name a new Kenai River management group and the council should be prepared to recommend persons for placement on it. BUDGET a Williams suggested setting aside the major item discussion (items which would make a major change in the City's services) and begin • KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 121 1995 PAGE 3 with the reviewing.of the city manager's budget memorandum. Williams noted though he hates to see the equipment reserve go down, it is in keeping with tho council thinking. Manninen stated in staff discussions, in preparation of the budget, some of the expensive items were moved into other years or taken out of the budget altogether. Without those changes, more than $300,000 would have had to be placed in the equipment reserve. The expenditures could be increased or decreased. It is up to the Council in regard to the equipment reserve. If set at one mil, they would need to add another $500,000. It may make sense to set the reserve at $1 million to take out of the General Fund and put in the reserve. Williams noted the main question would then be the effect on the General Fund. • Finance Director Brown referred to Exhibit 5, next -to -bottom - line. If the operating budget is not raised very much this year, it would be a good year to take an extra $200,000 and put in the reserve to keep the balance up. It would be a good year as a lot is not needed to be added to the General Fund in order to balance. It depends on what Council does. Manninen added, another point would be whether the General Fund balance would be $6.8 million or $7.2 million. Brown added he did not think the fund balance decreasing. He is not concerned about the sales tax deductions as he didn't raise the estimates for next year. Williams stated he expects the decrease in payroll for oil companies will have a major impact on retail sales in the city. Brown added property values are increasing. Nothing he's seen so far makes him worry. Williams stated he would go ahead and accept the recommendation to move on the heavy equipment as shown without increasing the reserve, holding some purchases, or increasing the reserve. Council questions regarding the heavy, equipment would be held until after the rest of the budget was discussed. Manninen added he requested department heads to put together a memorandum and video for council review in regard to need for heavy equipment replacement, etc. r� • RENAI CITY COUNCIL BUDGET WORK SESSION ApRIL 121 1995 PAGE 4 Monfor questioned the water well status. Manninen reported the City received the tests dev he lopathewell and have money to ere The water is good. Now they have to get in The new well should be hooked develop and hne up and going tityear eatethis ttime. Manninen added the Thompson Park money can be used forhopthe well also and two or three outhouses (park and beach). Y receive $1 million from the State agrom2the0Th from Park Governor's Capital Grant and money project. $2.75 million will be needed for the well. Williams reviewed the remainder of the budget d theFo. inance stated it was a credit to Administration Department for presentation of budget figures as they are. There is a projected appropriation of fund balance of $30,000 in ned not to gloss 685 comparison to the 993 last year. Brown $ � over the fact that a large portion of the budget is being i.e. central transferred from other funds within the transferred from administration is all of City Hall, $2 ,00 Airport to the Fire Department; and some is internal entry. The transfers were discussed. C IL Williams asked Kornelis if there were any major problems lley sported he street maintenance, i.e. dust control, et has heard lots of nice comments about the streets, lots of largeSmalleholes� noted the Recreation Center parking lot has Kornelis stated the will have to cut into them to patch them. Williams noted sunken manholes on Aliak and Lawto IBM PAC—ILIT-YA Brown note d the retained earnings does make a difference. They are slowing working down to zero. �ONa =$Qs►R'L HOU9�N4 R d = Brown reported by the end of FY 95, he expects the reserve to be about $i9O,O00. This budee�calls ve atraboutnone�half of the goal O ms added that would place th of $500,000. . KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 5 BREAK TAKENs 9:00 P.M. BACK TO ORDERS 9:15 P.M. Council discussed the request for funding to purchase a document imaging system. The Clerks budget included costs for network software and the system. Freas explained she has discussed the possible purchase with a company in Anchorage who worked with the City of Homer and Homer Electric Association, Inc. in finding the right system for their needs. Freas added there will be a lot of discussion, survey of needs, etc. prior to any purchase. Councilwoman Swarner added she discussed the matter with Scott Kraxberger at the Kenai Peninsula College. He stated he would review information if needed also. APPROVED. K=X VISITOR CENTER: Councilwoman Monfor requested this budget be discussed at a later date as the President of the Board was unable to attend. BUDGET HELD FOR NEST WORK SESSION. LEGISLATIVE# Donkey Engine - Williams discussed his desire to bring the donkey engine from across the Inlet and where to place it. Williams added it could be included in the walking tour of Old Towne. Williams suggested the lawn behind the old City Hall building. Williams added he requested Kornelis to estimate the cost for a shed -type cover for the engine, plus the concrete pad. Williams requested $25,000 be added to the budget for this project. . Measles suggested the money be placed in the Parks & Recreation budget. CONSENSUS WAS TO PLACE T0 HE $251,000 IN THE PARKS & RECREATION BUDGET. 4 KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 6 City Brochure - Councilwoman Monfor suggested a new brochure be developed in conjunction with the Visitors Center and/or the Kenai Chamber of Commerce. Monfor suggested pictures be taken in July and August. The brochure could be used to promote the City, using it for handouts, etc. CONSENSUS OF COUNCIL WAB To ADD $151,000 TO LEGISLATIVE PRINTING AND BINDING FOR DZY LOPMEXT OF A CITY BROCHURE. . City Video/Russian Dubbed - Williams stated he would like to have a few copies of the city video made with Russian dubbing. No CHANGE. Miscellaneous/Alt Municipal League conference - Swarner suggested removing the $1,000 placed under Miscellaneous. The $1,000 was added in the budget for last year's AML Conference Sreception which was held in Kenai. REMOVE THE $1,0000 Kenai Peninsula Caucus - Swarner stated she would like to take the Caucus dues out of the budget. Williams stated he would support the Caucus dues. NO CHANGE. COUNCIL -APPROVED WITH ADDITION OF $154,000 TO PRINTING AND BINDING FOR BROCHURE COST8. Graves explained the additional $50,000 in his professional services budget was an estimate for upcoming costs in regard to Inlet Woods litigation, etc. Some of the additional costs has to do with strategy.and he could not discuss that at this time. Williams asked if there would be additional costs in regard to possible overlay district litigation. Graves stated no. Most of that would be done in-house. Graves also explained the additional cost for his books budget was to replace 60-70% of his books with CD-ROM. The initial costs will be greater, however, the updates will cost less. 0 KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 7 COUNCIL APPROVED BUDGET AB PRESEN7206 CIYMANAGER= Williams stated his concern Manninen's travel budget would be too low. Manninen stated he felt comfortable with the amount requested. If needed, he could ask for more from council from contingency. He anticipated the money includedwould his cover his next year's travel. Manninen added he believed s a workable budget. COUNCIL APPROVED BUDGET AB PRESENTED. FINANCE DBPARTM = Williams noted the Finance! Department's travel budget was $500 higher. Brown explained he uses most of the budgeted funds for his employees to get additional training. Brown also noted he made a mistake in his budget. Brown requested an additional $1,000 be placed in his miscellaneous budget for contract billing of ambulance fees to Medicaid and Medicare. Brown stated he had not anticipated Council's approval of instigating ambulance fees. COUNCIL APPROVED THE FINANCE DSPARTNMNT BUDGET AS PRESENTED AND WITH THE ADDITION OF $16,000 IN THE MISCELLANEOUS ACCOUNT FOR CONTRACT BILLING, No discussion. COUNCIL APPROVED THE AIRPORT LAND BUDGET AS PRESENTED. Williams noted this budget was raised by $25,0004 Brown reported that was for insurance costs, replacement of the small copier and purchase of the telephone system.@. Brown stated it would be cost effective to purchase the system at this time. COUNCIL APPROVED TUB NON-DLPARINBU1'AL/OMM" FUND BUDGET AB PRESENTED. • • KENAI CITY COUIJCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 8 MMINCS i teats Kornelis explained the advertising account was raisedas e s the not rd funds received for purchase of building permits are back into their account. Brown explained the need tithad been done was not correct. Those funds received revenues and has no effect on the net operation. Smalley asked if the Townsite Historic Survey costs should be included in the printing and binding budget.it was saddednote they those costs would be out this ittedsbybudget* 30. is have to have the funds co�aua NO CRANd$B. COUNCIL APPROVED THE VLW1NIN4 & BONING "Domw AS PRESENTED, gnt.rn_� eEpARTMFzI�'�'=_ Chief Morris explained changes to his budget were reflected in a difference in PERS and theadditionof two automobiles Machinery & Equipment acco Williams asked if the computer system had been transfconputerred. Morris explained they are doing Wellupdated four of thedispatch and they Bookey asked if Morris saw any impact on the Overtime situation with the expectations of adefwasonnatisfi d with the amount in his l dipnotting and -fishermen to the River. Morris stated h budget. If more is needed, he would come back and explain where it was spent. Williams requested Administration to briefly the impact on the city in regard to theanticipateduse Ofs the river because of closures of other rivers* added it is another formOfsmaiioa laed orninalusioa in Williams would like the his letter to the governor. Morris added one of the officers will be involved diinnat believe program aimed at jior nthhigh-aged e officers other- duties. r there would be an impact o . • KBNAI CITY COUNCIL BUDGET WORK SESSION APRIL 121 1995 PAGE 9 COUNCIL APPROVED THE POLICE DEPARTMENT BUDGET AS PREBENTED, RICEPT FOR LI%RGZ EQUIPMENT PURCHA8E REQUESTS WHICH WILL BE DISCUSSED AT A LATER DATE Chief Burnett explained his budget had been increased by $3,000 to accommodate for transportation for training on new equipment. Also there is a small increase for impact bottle replacements. COUNCIL APPROVED THE FIRE DEPARTMENT BUDGET AS PREBENTEDo EXCEPT TEL LIRGS EQUIPMENT PURCHASE REQUE8TS0 WHICH MOULD BE DISCUSSED LATER. Chief Morris explained the Operating & Supplies budget changed because they divided out the costs between the Police and Communications. Williams questioned the decrease in the Small Tools account. Morris stated he .believed it to be okay. COUNCIL APPROVED THE COMUNICATIONS BUDGET AS PRESENTED. Councilman Smalley suggested the budget may need to reflect an impact the amount of additional fishermen may have when bringing their pets, etc. Williams asked where the building maintenance was included. Kornelis explained all building maintenance costs were included in the Buildings budget. Bookey suggested repairs and maintenance be discussed later. COUNCIL APPROVED THE ANIMAL CONTROL BUDGET AS BREBENTED. p2=9 NORi INIA INIA moy: Kornelis explained there was a big change in machinery and equipment. The other items are those requirin OSHA training for the coordinator, etc. The Engineering Technician and the City Manager did the budget for safety.costs. The budget began at $30,000 and has now been reduced. They plan to bring in instructors which will decrease the cost for transportation, etc. • • • KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 10 COUNCIL APPROVED PUBLIC WORKS/ADMINISTRATION BUDGET AS PRESENTED* Williams noted the maintenance and repair budget was decreased from last year. Kornelis explained last year there were specific items needed (generator work, crash truck work, Caterpillar 966). The $25,000 in this budget is a guess. There won't be as many specific items in the budget this year. They are requesting funds to develo be pulled behind a truck to respond would be equipped with safety gear, asked if this was needed due to OSHA stated no. Bookey stated he was not for the trailer. The trailer may be available at the Fire Department. p a shop trailer to emergencies. oil spill gear, would trailer Bookey regulations. Kornelis comfortable with the $25,000 duplicating what is already which The etc, Kornelis explained the trailer would be equipped with barricades, shovels, etc. Burnett added his Department has only a minimal amount of this type of equipment. Kornelis added the trailer would also be equipped with vests, ditch digging equipment, a generator, heater, pumps, and it would serve as a warming area for personnel. Burnett added the Fire Department could utilize the equipment as well. Bookey stated he would want it to stay maintained at all times. Kornelis stated he already thought about that. Swarner asked if there was enough money for maintaining the new equipment that the city has and training for the care of it. Kornelis answered he is really more concerned about maintaining the older equipment. Kornelis stated he felt there was enough included in the budget to cover transportation and costs for training. Swarner added she wanted to be sure there was enough money included in accounts for necessary training. COUNCIL APPROVED THE SHOP BUDGET AS PRESENTED. Williams noted a large increase in Machinery & Equipment. Kornelis answered a large amount of the increase was for a . KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 11 snowblower. Kornelis added he would have back-up information and a video for another work session. Kornelis added there is a also OSHA mandatory training included in this budget. COUNCIL APPROVED THE STREET MAINTENANCE BUDGET AO PREBENTED. WILDru" a Kornelis reported he received a memorandum from the Building Inspector requesting an amount of $222,900 for needed building repairs and maintenance. The city manager has decreased that budget to $82,000. McGillivray stated his concern there should be more funds included for roof repairs. There are a lot of items he felt should be done which were cut out. There are other repairs needed than just roofs. Williams asked for specific items felt needed. Kornelis answered: carpeting replacement in the library and City Hall; OSHA-requried lighting and roofing at the Animal Control Shelter; the replacement in the entry way at the Senior Center; roofing on a number of buildings; Rec Center carpet replacement; re - coating of the gymnasium floor, etc. Williams suggested Administration put lots of money in rolling stock. Maybe next year money will need to be included for major maintenance of buildings. Manninen stated he is finding out they may need work to be done on the Fine Arts Building and the Flight Service Station. All the buildings need roof repair or heat/ventilation systems. Williams stated he does not want to let the building get too far along before doing necessary maintenance on them. COUNCIL APPROVED THE ADDITION OF $4,500 FOR RECOATING THE RECREATION CENTER GYMNA8I0M FLOOR. Williams stated he thought it was the Arts group's responsibility for maintaining the Fine Arts Centex. Monfor stated she.felt it was the city's responsibility to repair the roof. Kornelis stated they estimated the cost to repair the roof would be $22,000. • • KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 12 Kornelis added there are other big problems with the building. A short discussion followed. Council and Kornelis discussed the foundation prololems with the building, etc. Council stated their concerns of putting a lot of money into repair of the roof when the foundation was falling away. KORNELIS WAS REQUESTED TO BRING FORWARD ADDITIONAL DETAILED INFORMATION OF REPAIRS NEEDED TO THIS BUILDING AND OTHER CITY BVILDINa8. Councilwoman Swarner stated she would like additional street lights placed within the City. Those areas suggested for placing additional lights were: The stretch between Tinker and Lawton and Deepwood Court. Freas asked if additional lights will be needed if the addition to Woodland goes forward? Kornelis stated he has been working with HEA in regard to the City's maintenance agreement. HEA wants out of it. Kornelis added he believes something will be worked out. However, HEA will be insisting on metering the street lights. KORNELI8 WAG REQUESTED TO BRING TO THE NEXT WORK SESSION THE COST FOR PLACEMENT OF TEN STREET LIGHT8. DeForest reported her is outdated and after system. New hardware computer now will nee OPdRM IF POSITIONS! d big computer needs replacing. The hardware next year, the company won't support the will be needed and the programs on the to be transferred. Councilwoman Monfor reported two department assistants are at a ]Range 3 which is equivalent to the Recreation Center level and the skill needed for the department assistants warrant a Range 7 which would be an additional $1,000 (a year) for each. Councilwoman Monfor and Councilman Smalley supported the changes. Monfor added one of the persons takes over the Librarian's position when she is out of town. The department assistant positions are comparable to a City Hall secretary position. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 13 McGillivray stated his concern of the statement (made by Councilwoman Monfor) that his worker only sits and answers the phone. There is more involved. Monfor apologized and stated she meant that the scope of work at the library may be more complex, i.e. computer knowledge, etc. Monfor added, perhaps changes needed to be made in other departments as well. Swarner agreed. Manninen stated that if ranges are changed selectively, that could make things worse. There are other departments that have requested similar range changes. He did not recommend any changes. Manninen explained there are some employees who are at the top of their range and their pay classifications are frozen, other than COLA raises. Approximately 1/3 of the employees receive step raises every other year and approximately 1/3 of the employees are working through their steps. Monfor stated that was not a fair evaluation. What Manninen was is saying and what she was discussing were two different items. The library positions she was discussing (and others as well) are positions where the scope of the work has changed. It is the Council's responsibility to make those types of decisions, however, for years the department heads have been told by Administration that their requests would not be taken to Council. Council has no way of knowing without that information being forwarded. The City does not have a merit raise and the workers are not rewarded. In these two jobs, the scope of the work has changed dramatically. The employees in those positions should not be stuck there. It's not their fault. If other department heads feel the same about some of their employee's positions, they should state it. The Council will take the heat. Manninen stated nobody was saying Council couldn't make changes. He is saying, be warned when they are doing it. Monfor stated it may need to be done because the position's scope has changed and it is no longer the same position. If the employees have the same type of responsibilities as another level, why not move them up to that level. They do not need to reclassify, but move„them to the level of scope for the position. Bookey agreed with Monfor, however, there are more employees out . there and if Council looks at one position, they need to review them all. Monfor stated she did not disagree with that. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 14 Smalley reminded Council that they changed one position during a budget session because the job duties changed and the employee. was given an increase. Williams asked Brown if a person is hired at a specific range because of the job requirements and the job requirements change considerably from those that person was hired for, should their job classification change with the position? Brown stated he was not qualified to answer that question. Bannock stated he agreed with Bookey in that if Council wants to look at classifications, he would rather look at all employees and make any necessary changes as opposed to individual department levels. There may be other position changes as well. Bannock added he felt it would be dangerous to make changes in one department and not look at other departments as well. Monfor stated the City's most valuable resource is its employees. Monfor added she did not disagree with adding new personnel, but thinks it is time to look at pay ranges. There may be Range 3's that should remain there, but there may be some that should be higher. Williams noted it has been ten years since the Council had a professional study done. However, he did not know if another professional study would need to be done. Perhaps an in-house review could be made. Monfor stated a position could be reviewed as what was required in that position when filled compared to what is required of the position now. Williams asked if it is necessary to re -advertise positions if they are reclassified. Brown stated that has never been done. Councilman Measles suggested a review be done separate from the budget, after the budget is closed and completed. Measles suggested Council direct Administration to review all the city - positions and bring back recommendations after July 1. It was asked if he was suggesting to review all the Range 3's within the City. Measles answered no, Administration needs to take an overview of the whole roster and see if there are inequities there. Some will stand out. KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 12, 1995 PAGE 15 COUNCIL CONSENBU8: ADMINISTRRTION BROULD REVIEW ALL CITY. POSITIONS AND LOOK FOR XNEQUITIE8. TKE STUDY SHOULD BE COMPLETED. AND PRE8=TED TO COUNCIL AFTER JULY 1. Council adjourned the work session at approximately 9s50 p.m. At the next work session, Council will begin with the Recreation budget. The date of the next budget session is to be set at the April 19, 1995 council meeting. Notes transcribed and & 4 A *,o 16 Carol L. Freas, X. 0 tted by: pppROW-D BY COUNC1L .5.3MONO DATE *4 "L =