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HomeMy WebLinkAbout2010-10-11 City Council Minutes Approved G8. O ff' 4111112,41 OOR Council Study Session Minutes—October 11, 2010 At 7:30 p.m. Mayor Maxwell called the regularly scheduled Anacortes City Council study session of October 11, 2010 to order. Councilors Kevin McKeown, Erica Pickett, Brad Adams and Cynthia Richardson were present. Nick Petrish, Bill Turner and Brian Geer were absent. Council Budget Review Council began its review of the proposed budget for 2011 for all departments other than Public Works which was scheduled for review at the October 25 Study Session. Mayor Maxwell thanked department heads and managers for working so hard to find ways to stretch limited dollars to provide high levels of service. By way of introduction Finance Director Steve Hoglund observed that the proposed 2011 budget is flat compared to 2010. He explained that revenue projections drive the budget and were developed using a conservative approach: the 2011 budget estimated a simple 1% increase in property tax and sales tax revenues were projected from 2009 so that a few large construction projects in 2010 didn't skew the numbers. Mr. Hoglund said that the projections include liquor control board profits and liquor excise tax and that if initiatives 1100 or 1105 are passed by the voters in November the budget may need to be revised but the impacts of either of those initiatives are at this point unclear. In the Water Fund, the water treatment plant project has a$1 M place holder again this year so that very large project doesn't artificially inflate the budget. In the Storm Drain fund the dredging project expenditures will be paid with the fund balance until the basin specific fee is established. The Sewer fund includes almost$900K in capital projects balanced with capital reserve cash. Regarding scheduling, Mr. Hoglund said the budget is scheduled for a public hearing on November 1 and then for adoption at the November 15, 2010 City Council meeting. On a related matter, Mr. Hoglund said that the City maintains a 5% emergency reserve balance in each operating fund and that three funds may need to use emergency reserve cash to balance this year: Library (103), Ambulance Service (110) and Community Development (180). He noted declining sales tax revenues have hurt these funds. He advised he will bring a resolution to Council on October 18 that would allow for using cash reserves in those funds in the 2010 and 2011 budgets. Mayor Maxwell explained the reimbursement situation for the ambulance fund from the EMS Council. Mr. Hoglund added that the Community Development Fund relies heavily on lease funding and that Cap Sante Marine requested struggling tenant relief which the city granted and which has affected that fund. Interest revenue is also down significantly which affects this fund disproportionately. Planning Director Ryan Larsen presented the Planning Department budget for 2011. He noted that Wetland Review and Stream Habitat Monitoring are projects that continue to be budgeted and that he hopes to begin work on those in 2011. He also pointed out the Permit Record Archiving line item. He said the Building Department has been archiving old permit information and hopes to continue that project next year. Mrs. Pickett asked for details. Mr. Larsen said duplicate hard copies are being purged and the remaining files are being scanned and stored electronically. Mrs. Richardson asked if this will offer the public better access to historical permits. Assistant Planning Director Don Measamer said yes, staff will be able to look up addresses and have access to all pertinent information including variances, conditional use permits, etc. In addition, commercial building files will also be available, not just residential. He added that staff hopes to scan drawings as well as permits. Mrs. Richardson asked about the budget for Outside Attorney-Code Enforcement which is considerably lower than prior years. Mayor Maxwell explained that with no major disputes that should be sufficient. Mr. Larsen next addressed the Community Development Fund budget (Fund 180). He noted the line items for the Anacortes Futures Project and the wayfinding sign project. That fund will also help support the 4th of July fireworks display. He also explained that the line items for Planning, Administration, Professional Services and Public Facilities Pass Through flow from the Community Development Block Grant program and are fully reimbursed. Anacortes City Council Study Session Minutes October 11, 2010 1 Human Resources Director Emily Schuh presented the Human Resources Department budget for 2011 which is 2% lower than 2010. She said her budget focuses on prevention and training. She advised that the Commissioned Police Guild just ratified its contract which will save considerable expense relating to arbitration. She added that the Civil Service Secretary position was brought in house last year and the budget continues to include a small allowance for contracting out in case of a conflict of interest but that amount was not needed in 2010. Ms. Schuh also addressed the medical and health insurance benefits in the non-departmental section of the budget. She said the cost of insurance is outpacing inflation nationwide. She noted that the 2011 budget includes an increase of 11% in medical expenses but said the City is working diligently towards a Well City award which will provide a 2% discount in 2012. She thanked the mayor and Council for supporting Wellness programs to achieve this savings. Mrs. Richardson pointed out that medical benefits are a significant cost to the City but are written into employment contracts so can't be cut. Ms. Schuh noted that all the collective bargaining agreements require employees to pay a portion of health insurance premiums and the employee share is not reflected in the budget. Mr. McKeown asked how the employee portion compares to the private sector. Ms. Schuh said the City generally compares itself to similar cities rather than to the private sector. Mr. McKeown observed that the City's 90/10 split is very attractive compared to 80/20 that is more common in the private sector. Museum Director Steve Oakley presented the Museum budget for 2011 which is virtually unchanged from 2010. He said the Museum has successfully applied for grants to supplement its budget and makes extensive use of volunteers. In 2010 it received a$10K grant for the historic property inventory, a Tourism Fund grant for the well received Wawona exhibit, and a Noon Kiwanis Club grant for the Wawona exhibit and to restore the leaded glass panel in the Carnegie Library building. Staff are now working on a NWCAA grant to change out the incandescent lights in the museum to LED lights to save energy costs and reduce infrared and UV exposure for the collection. Mr. Oakley thanked the City for recognizing the cultural resources offered by the museum, the W.T. Preston and the Maritime Heritage Center. Library Director Cynthia Harrison presented the Public Library budget for 2011. She thanked Council for budgeting to allow 52 hours of 7-day public service each week. She noted that the library relies on many volunteers to stretch its budget. In 2011 the book budget has increased but the periodical budget has been trimmed. She said software maintenance is a large expense and she is proposing to decrease it by not updating the catalog software. She is also negotiating with vendors to hold costs down by arranging prepayment of future fees. She added that the library's utility expense has reduced thanks to help from Facilities Director Russ Pittis. The library will also reduce its data processing expense by reducing its number of network nodes. Mayor Maxwell added that during the first 7 months of 2010 the City has reduced energy use by 16% overall excluding the plants which has more than paid for the City's share of the cost for energy auditor Ric Boge. Mrs. Richardson pointed out that both the library and the museum get help from their respective foundations to fund items that the City budget cannot fund. Ms. Harrison said the Friends of the Library provided about$25,000 last year and the Library Foundation will be asked to give about$13,000. She noted that the library has also received donations of many valuable materials. Fire Chief Richard Curtis presented the Fire Department budget for 2011, calling it a status quo budget that continues the current level of service. He pointed out the $1000 budgeted for Forest Fire Patrol Tax for the ACFL, calling it more or less an insurance policy; he noted that DNR came out and helped with an ACFL fire this year. He pointed out the budget item to repair cracks in the Station 1 exterior. Council discussed the technical details of the repairs. Chief Curtis explained that the $4000 line item for portable radios is actually for a mobile repeater system to improve radio reception and maintain communications during response events. He said one repeater was installed using County grant funds. He also noted that the March Point Fire Station Lease (Station 3) was moved to a different location in the budget, not removed altogether, and said this is an increase of 11%this year because the lease had to be renegotiated when the last three-year lease expired but it is still less expensive than other options. Mrs. Pickett asked about the $7800 line item for new radio pagers. Chief Curtis explained that the old pagers are constantly out for repairs and need replacement. Mrs. Pickett asked why firefighters can't use their cell phones. Chief Curtis explained that the radio pagers are required to communicate with dispatch and also provide broadcast communications to more than one person which cell phones can't provide. Mr. McKeown added that cell phones don't withstand fire and smoke during response events. He asked if the portable radios will be purchased outright or borrowed for evaluation. Chief Curtis said a number of them Anacortes City Council Study Session Minutes October 11, 2010 2 will be purchased and more will be purchased later if they work well. Mr. Adams asked about the changes to overtime and callback pay compared to 2010. Chief Curtis advised that those line items were switched in the 2010 budget and have been corrected for 2011. He also advised that overtime is used to fill in for vacant positions or staff away on sick leave while callback pay is to provide coverage in the case of multiple calls. Mr. Adams asked if occasional overtime is cheaper than hiring another person. Chief Curtis said yes, up to a point. Mr. McKeown asked about volunteer firefighters. Chief Curtis said they have ten volunteers right now, up from four last year, and two are at the academy. Police Chief Bonnie Bowers presented the Police Department budget for 2011 which is$24K lower than 2010. Chief Bowers said the budget includes agreed upon increases in wages and benefits and assured that the cuts made don't affect public safety services provided. She added there will be no capital expenditures other than routine vehicle replacement. Noting that Anacortes is fortunate not to have to reduce the size of the force as some jurisdictions have had to do, she reported that utility savings have been achieved, dry cleaning bills have been reduced, and that the department received some grants for traffic safety, domestic violence, and bulletproof vests. Mrs. Richardson asked about the training budget. Chief Bowers said officer training is prioritized based on what is mandated by law, what is critical, and then expertise areas. She said all officers do 16 hours of in service training each year which saves costs compared to traveling and that Anacortes always exceeds the mandated 24 hours of continuing education for each officer every year. Mr. McKeown asked which cuts were of the most concern. Chief Bowers said she was not anticipating problems with the budget and that the department has found creative ways to accomplish goals without spending cash. She called jail costs worrisome as they continue to rise and said she is working with the Oak Harbor City Jail and the hospitals to control costs. She said the department will be evaluating every prisoner to be sure that person needs to be in custody. Mayor Maxwell asked about full time employees. Chief Bowers agreed that's the biggest share of the budget and is down some from 2010. Mrs. Richardson noted that volunteers assist the APD via the Auxiliary Patrol. Chief Bowers explained that two Auxiliary Patrol units give over 1000 volunteer hours each year helping with property watches, street fairs, and so on. She expressed her appreciation to the volunteers. Parks Director Gary Robinson presented the Parks and Recreation Department budget for 2011. He said it is a flat budget compared to 2010 offering the same level of service and holding the line on expenditures. He thanked the mayor and Council for supporting parks in the city. He explained that the FTE budget shows an increase because when Facilities Manager Russ Pittis shifted from Parks to Public Works some position funding shifted between accounts but overall staff size hasn't changed. He added this isn't easy because Anacortes keeps adding parks but not adding parks staff. He said an additional parks staffer had been planned a few years ago but was removed from the budget but he still hopes to add that person in the future. Mr. Robinson pointed out the increase in recreation operating supplies from $36K to $50K is largely to pay Anacortes School District for use of its facilities. He said those costs will be passed on to users who will be paying fees so increased revenue should cover those costs. Mr. Robinson noted that the public works budget includes money to move forward with the SHIP interpretive trail and Guemes Channel trail. He said next year some major work will take place at Daniels Field using private donations. He thanked the Parks Foundation and volunteers who make this type of project possible. Mr. McKeown asked about volunteer opportunities at John and Doris Tursi Park. Mr. Robinson said the new landscaping at that park is filling in as planned but said the department welcomes volunteers throughout the park system. Mr. Adams asked about the fees being charged by ASD 103 and asked if the amount was negotiated. Mr. Robinson said yes, the City is getting a reduced rate from what the District charges other entities. He said the Cemetery and Washington Park funds are static and the department will be spending carefully and working with volunteers to achieve improvements at Washington Park. Washington Park Manager Bob Vaux added that the Friends of Washington Park is being reinvigorated to make the most of volunteers and said the Citizen's Auxiliary Patrol has been helping in the campground. Mrs. Richardson asked about revenue trends from the boat launch and campground. Mr. Vaux said that in this economy people seem to be camping more and that what limited the revenue this summer was the weather. He added that he will be looking at the reservation system to possibly enhance revenue and that the new boat lot parking fee machine will help as well. Mayor Maxwell noted Washington Park could possibly benefit from more marketing. Parks and Forestlands Manager Jonn Lunsford reported lots of volunteers work in the forestlands daily, the Friends of the Forest education program continues, there has been a reduction of vandalism due to the police in the woods grant, and that the woods have also benefited from grants to fund seasonal maintenance workers. Mr. Adams asked if the police in the woods Anacortes City Council Study Session Minutes October 11, 2010 3 grant will be received for 2011. Mr. Lunsford said all that money went to State parks in 2010 but it may become available again in 2011. Recreation Manager Dustin South thanked a dedicated group of volunteers for their help with recreation programs, especially coaching, and thanked Council for its support of the City's recreational programs and facilities. Mr. McKeown noted that a harsh winter has been predicted and asked if snow removal has been budgeted. Mayor Maxwell said a small amount has been budgeted and it will be amended if necessary. He noted the City is better prepared than it was a couple of years ago and has a new de-icer and a couple more snow plows. He said a very harsh winter may require $100K for snow removal. He added that the City will be meeting with WSDOT to clarify each jurisdiction's responsibility for snow removal. Mayor Maxwell said that the Executive and Legislative budgets include small increases for cost of living but no big changes. Mr. Hoglund presented the Finance Department budget for 2011. He called it a flat line budget driven primarily by staff costs. He pointed out the $20K line item for professional services which includes $15K for an investment advisor to get competitive quotes for new investments and $5K to hire a CPA to review the financial statements;this last happened in 2008 and may not actually be spent in 2011. Regarding the Department of Information Services budget, Mr. Hoglund said the department has added a half time staffer. He noted they do nearly everything in house saving substantial funds. He also pointed out that the budget for software and updates is up to$13K from $4K for an email archiving system to meet new federal requirements. In closing, Mr. Hoglund noted that all budgets are scrutinized line by line by departments and by the mayor before they are presented to City Council. Mayor Maxwell thanked the Council for setting good direction and thanked staff for working so hard on behalf of the community. There being no further business, at approximately 9:12 p.m. Mayor Maxwell adjourned the regularly scheduled study session of October 11, 2010. Anacortes City Council Study Session Minutes October 11, 2010 4