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HomeMy WebLinkAbout1993-05-03 Council Minutes - Budget Work Session�J KENAI CITY COUNCIL BUDGET WORK SESSION MAY 3, 1993 KENAI ' 8ENIOR 6800 P.M. CITIZENS CENTER COUNCIL PR BSNTs Williams, McComsey, Bookey, Measles, Monfor, and Swarner. COUNCIL ABASli1T: Smalley. Freas, Graves, Morris, Howard, Brown, McGillivray, Kornelis, DeForest, Burnett and Porter. Sewer & Water Department, - pump truck, telemetry system and water well. Water G Gower Increase - Williams stated a 20% increase will .,r raise $182,000 and $185,000 is needed for a new telemetry system and $10,000-15,000 will be needed for a test well. Williams stated they are looking at a two-year spread -- late fall when the telemetry system would be installed, Williams added one other factor goes into this and that is the pump truck. Three councilmembers visited with Kornelis to view the pump truck. Their opinion is to repair the truck at this time. The repair will cost $50,000, which will include shipping the truck out, repair of the truck, and shipping it back. It will take two to three months, • Williams added the 1984 truck has 15,700 miles on the engine and 1,746 hours on the auxiliary engine. After reviewing the truck and talking with the shop people, an anti -surge could be placed, hydraulics repaired, painted, etc. and the cost would be approximately $55,000 versus $200,000 for a new truck, or $150,000 with a trade-in, Brown stated the Water and Sewer Fund does not use the Capitol Improvement Reserve. The cost for the truck would come from the Water and Sewer Fund. Brown stated the present balance is $690,000. Williams calculated $260,000 would cover the cost of the telemetry system, well, etc. There would be a $430,000 balance. $182,000 would be raised from the water and sewer increase, -1- #V Brown stated the telemetry system • was taken out of looking hebudget at Williams stated y the last work session. putting it back in. Brown referred to Page 2 of his memorandum -- taking $2350000 out of the Fund Balance with the telemetry system will leave $690#00 for the fund balance. Swarner asked why they were putting the telemetry system back in. McComsey stated it was more important than the truck. Swarner stated she thought they would be drilling an exploratory well. Williams calculated after one year twe3n the fund balance with a 20% increase inater and sewrchargea Discussion followed regarding the fund balance and how wsit would be affected in regard to the expendituresg Brown stated if the purchase of the thpump fundtruck balanceeandeitsthere total would be another $1oo,000 added to e would then be $550,000. Brown stated he had $20,O00 inv higothsto dealithEP budget mnfor exploratory A and well. Williams stated they ha asked what council was going toKornelisDiscussion afollowed guess for regarding the cost of a well* the cost of a well, if placed bcnw•ellexisting placed, willwould the $100,0oo. Swarner asked if a god telemetry system still be needed. Kornelis stated it would still be needed. Kornelis added the telemetry system includes new electrical panels for all the lift stations. Measles asked when the test well would dwaterbe iised. Kornelis the dirtiest in suggested doing it during the time the existing well so that they can monitor it as the test well is being drilled. Probably late fall. Measles stated he is concerned that if the test well iisadnewled, they may find they should not wait is m P ut well. Also, Measles was concerned about drilling a test well too close to an existing well, in as case etwellmay notsolveanything the sy the old B not placed properly, drilling Kornelis stated the records show no problem. Williams suggested placing the test well by Wellhouse No. 1. Kornelis stated Wellhouse No. 1 is the best water and both wells are needed. Wellhouse No. 2 is the dirtiest water. Kornelis stated there is a third well, but he doesn't know anything about it other than where it is located* KornelisMeasles statedasked hefdidn'twater know. has been tested from that well ,w It is an artisan well but doesn't know who drilled it or anything about it. Kornelis stated there is another artisan well by Angler of which he knows little about. Williams asked Kornelis to find out more information about the wells in order that the council make a.better decision. Williams stated they would leave the $20,000 in the budget for now. Williams was asked by Measles and Swarner why the truck needed to be sent out. Can someone from here do the work? Williams stated the truck would need to be disassembled and it would be better to have the maker of the truck do the work. The maker has the blueprints, etc. Williams suggested Kornelis be sent out to check the truck before it is sent back. Kornelis stated he would send one of the shop men. Williams asked if this was okay with council. Answer was yes. Williams stated the truck would be sent out in late fail and it will be returned in early spring. Cost will be approximately $55,000. Arrangements should be made for the telemetry system and raise the rates 20%. There should then be a balance of $555,000. FIRE TRUCK - Williams referred to a memorandum distributed by Chief Burnett. Williams stated there was a question of whether to get an 80 ft. truck or a 95 ft. truck with a platform. The 951 would be an extra $100,000. Burnett stated after he reviewed the information thoroughly, he believed the extra $100,000 would be better. Burnett stated the construction of the rig is twice as heavy, has better hydraulics, etc. Four people will fit in the bucket and people can be brought down from upper floors of buildings in wheelchairs. With the other truck, a ladder would be used. Burnett stated the 80 ft. rig would meet the need of the city and pass the ISO rating. Burnett has no problem with the 8o ft. rig. However, he wants to be sure that in 30 years, the truck will still meet the needs of the city. The extra cost of the 95 ft. truck is an estimate. Burnett stated there are five or six companies that make the 95 ft. truck. Bookey asked if the fire house would need to be enlarged. Burnett stated no, the truck would fit. Monfor stated she did not think there was a question if the truck will last thirty years. McComsey asked if both trucks could be bid and then pick the one they want. Burnett stated yes. Burnett added the bucket is the important part and the bucket is not on the 80 ft. trucks. Burnett stated it will be a thirty- year investment and the'95 ft. truck could lower the rating. Williams stated he had discussed the fire department with Mayor Gilman. With the new oil find in the Inlet, more businesses in 40 the area, etc., he and Gilman suggested the Kenai Fire Department s3m r.. C • be combined with the Borough and a mill rate would be used to support the department. Williams stated he would like to see more information on that to see if it is to the city's benefit. Monfor asked Burnett what he thought of the idea. Burnett stated Kenai has the best fire department in the state. The Fire Department is not costing the city that much to run. They have a $4.8 million building that cost the city $1 million. All the equipment is paid for and his personal feeling is if the department were turned over to the Borough, the service would be reduced. Williams stated he believed it is costing Soldotna more now to contract out to the borough. Burnett added that Soldotna City Manager had no authority over their Fire Department during the chlorine leak. Monfor stated if she knew things would get better with the Borough, she would consider it. Monfor stated she believed the timing is premature. At this time, she does not want to give the Borough anything. McComsey stated he did not want to become part of the fights the Borough has with all the other areas. Williams stated the discussion would be put "on the back burner for another seven years." FIRE TRUCK, CONTINUBDs Swarner asked if either of these trucks would be rented to Soldotna. Burnett stated it would be sent out with the Mutual Aid Agreement only. Burnett added the fire plugs will handle the gallons per minute. Brown stated he understood it takes eight months for the truck to be built, depending on when it is bid out. If it is bid the right way, the purchase would be in the FY94 budget. Burnett stated a purchase order would be sent, but no money. The actual lease agreement would not be signed until delivery of the truck. Brown added that a payment is not due until one year after the lease is signed and delivery is taken. Williams suggested specifying a delivery date after July 1, 1994 and do a lease -purchase. This would give them the opportunity of appropriating an additional $300,000 next year and then it may be able to be purchased outright. Burnett stated a delivery date could be specified for after July 1. Brown stated the bid would not have to be delayed. This could be written in the specifications. Measles asked if both trucks could be bid with the understanding in the bid that only one truck would be purchased. Brown suggested both types of trucks could be bid and have them bid the cash purchase or their lease options and council could decides later. Brown added he is not sure that decision would have to be -4- made anytime soon. A letter could state that Kenai is ordering it and will make a decision later as to how it will be paid for. Brown thinks the kind of financing could be decided at the time of delivery, which is one year away. Measles stated after the order is placed, a big penalty would be added if they don't go through with the purchase. Monfor stated she believed they are of the same mind to do the double bidding. They want to pursue buying a truck. Burnett stated they should be committed by the end of July. Brown stated that once the purchase order is approved, it is a done deal. McComsey stated he would like to bid both the trucks. Bookey ' stated it would be fine with him. McComsey suggested a sixty - ninety day bid time. CONSENSUS: Both trucks will be bid. Timing will be left to Administration to carry the purchase order to the next year. PIRG PIT: Kornelis referred to his memorandum regarding the fire pit. Bookey stated a six foot cylinder is not big enough as it will crack from the heat. Discussion followed regarding the cylinders and where to get them. McGillivray suggested the concrete company bring their forms and pour the concrete here as there are no footings, etc. Bookey suggested Kornelis contact a mason and find out the cost for casting them in place. Williams stated the money could be put in the budget as it would not be built until after July. They will discuss the matter later. BEAUTIFICATION: Monfor stated $1,000 was lost in the operating supplies and another $1,000 in repairs and maintenance. Monfor suggested that instead of repairing Christmas decorations, that new ones be purchased gradually to replace the old ones. Monfor asked if the $1,000 was taken out of operating supplies for less flowers? Brown stated yes. Monfor stated she hoped the decrease of the budget is not the beginning of the end of the fund. Brown stated seven years ago this budget did not exist. Swarner stated in 1990 more money was expended. Brown stated that in 2992 only $33,000 was spent. Brown added this is one of those areas where it looks nice, but it is a matter of how much money council wants to spend and in his analysis, they just don't have the money. Monfor stated she just Monfor suggested a user that then falls back on tournaments, etc. bring • hoped the whole effort wouldn't go away. fee for the balifields. Williams stated sales tax. McComsey added the in a lot of sales tax paid. Swarner MSM • stated the bed tax collections could also be used for this. Brown stated he is more optimistic about the amounts of sales tax to be received for next year. McGillivray stated that when he and Brown met on this budget, he stated he could live with it, but the salary hours have not been raised for several years. McGillivray added that they are still using the same amount of people in the summer but their work load has increased with the additional areas they are caring for, i.e. grass, flowers, KBVCC, Junior High, etc. It gets harder to care for those areas. Williams suggested that more personnel will need to be added next year to parks and the shop. Monfor suggested that next year they investigate contracting out some of the parks work. Measles suggested investigating the contracting out of the mowing at the ballfields, the green strip, etc. Monfor asked when the Forest Drive Park be ready. McGillivray stated it will probably be mowed this summer. They will be fertilizing and liming as soon as possible. Monfor asked if the big toy had been ordered. McGillivray stated yes, it will be put in starting in June. They will be making safety inspections first and then will start installation of playground equipment. Williams asked if more money should be budgeted for flowers. Monfor stated no, she feels,comfortable but doesn't want to see a down turn. Monfor stated she is concerned about the Christmas decorations looking bad. Williams suggested they try one more year. Monfor agreed. Williams stated they should think about rotating the purchase of new trucks and cars for the city. $4,000 added for the fire ring. BREAR: 7:50 P.M. HACK TO WORK: 8:05 B.M. BOATING FACILITY: No changes. AIRPORT TERMINAL FUND: Swarner asked if the security at the airport terminal was necessary. Williams stated the security was ordered last year because of trouble in the terminal. If we have the same kind of summer this year, it may be needed. Ernst stated the security checks the parking lots, terminal, etc. People do leave the gates open and people get into the tie -down areas, etc. They are hoping to resolve that problem with the electric gates. -6- Ernst stated contingency was cut to carry the budget. Maintenance and repair increased due to janitorial service, mat cleaning, security, normal repairs. No changes, CONGREGATE HOUSXNG FOND: Williams discussed the ASHA problem in regards to the non-discrimination clause. Williams stated Brown tried to resolve the problem and had basically done so with the former supervisor. The new supervisor wants the "aged and unwed mothers, families, etc." put back in. if the contract is signed now, single mothers with children would be able to rent there. Williams stated the only way to get around it is to get a waiver from HUD. Williams stated they may have to discontinue taking ASHA tenants. Porter stated she believed the waiver is forthcoming. No changes. AIRPORT LAND BYBTEM: Ernst stated the landing fees were down from 90-91 because of more enplanements and more flights during that time. No changes. AIRPORT ADMINISTRATION BUD RTs Swarner requested the $5,000 for advertisement of the float plane basin be cut. Ernst requested it remain for one more year. Fliers have been produced and a advertising program is being put together now. Williams stated advertisement is needed to get people to come from Anchorage, etc. Ernst stated there has been discussion regarding increasing the 6% market value FAA lease rate. Brown stated it can be increased. Most appraisers say lot is more like fair market value. Ernst stated the airport is run lean. Williams suggested the airport has enough revenue to have its own marking person for the airport.. Ernst stated. they have been working on the infrastructure over the year. Williams stated they may be coming into an area where new ideas and marking procedures are needed. Williams suggested they may want to test an on-line marking position. No changes made. AIRPORT LAND SYSTEM: No Changes, SENIOR CITIZEN FUNDSt Porter discussed grant applications that have been sent in. Porter added she will not know until the middle of June what she will receive and then her budgets will be revised. Porter stated they have more seniors using their programs and are experiencing lower revenues. -7- • No changes. DEBT SERVICE FUNDS: Brown discussed the debt service fund. Brown stated the 1974 bond is paid and an ordinance will be the next packet for introduction regarding the 1980 bond debt. The They have discussed the refinancing of the 1984 bond debt and an ordinance will be up for introduction in the next packet. QUESTIONS FROM COUNCILS Brown stated he would analyze the changes made tonight. However, Brown added the only change made tonight was in water and sewer. Brown stated there will be more taken out of the General Fund than he wanted, but it could be worse. Brown added by the time they get to June 30, the unappropriated fund balance will go down as a result of this budget and approximately $200,000 as a result of the Evergreen, Haller paving. Brown stated he would leave the revenue figures alone and see where they come in. Brown added he is fairly optimistic that things will be better, i.e. interest revenue and sales tax, Kmart, etc. Brown stated he doesn't see any black holes out there. Swarner asked how bed tax collection was going. Brown stated he has written threatening letters to those who have not paid. 10 There are four major hotels in Kenai. One is in bankruptcy and one has not yet filed. Brown stated he has received $5,500 from two hotels and some bed and breakfasts. Williams suggested the ordinance be amended to reflect monthly payment and conditional use permits being canceled if the tax is not paid. Graves stated it needs to be made a condition of the permit and then the ordinance will not have to be changed. The condition use permits already out there could not be changed now. Williams asked what if the ordinance be rewritten to make bed tax payments retroactive. Measles stated it should be all permits are subject to an annual review so that all taxes could be investigated. Measles asked if there was anything in the existing code for the permits to be revoked. Graves stated he would have to check for conditions regarding local, state, and federal law. All permits could be made to be revocable by the city for not paying taxes. Brown asked if council would like to see a monthly payment schedule if they are delinquent on payment of taxes. Measles asked about taxi permits and payment of sales tax. Has anything been resolved. Brown answered no. Monfor asked why state monies are going to other libraries and not to the Kenai Community Library. DeForest stated there are more libraries in our senate district. -8= The budget Will bs introduoed on May 19, 19939 Work session ended at 9:00 p.m. Notes submitted by: Carol L. Fr as, City Clerk 40 ..g..