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HomeMy WebLinkAbout2011-09-26 City Council Minutes Approved OST Y Off' -4w'' OOR City Council Minutes—September 26, 2011 At approximately 8:58 Mayor Maxwell called the regularly scheduled study session of September 26, 2011 to order. Present were Eric Johnson, Nick Petrish, Erica Pickett, Brad Adams, Cynthia Richardson and Brian Geer. Bill Turner was absent. Mr. Johnson asked about untabbed funds 200 (GO Bond Debt Service Library) and 602 (Forestland Endowment Fund). Finance Director Steve Hoglund explained those funds are not statutorily required to be budgeted but pages are included in the budget binders for Councilmember information. Council then began its review of the proposed 2012 budget, beginning with a review of the police department budget. Police Chief Bonnie Bowers said the mission of department hasn't changed nor has the budget. They have continued to find efficiencies, most recently with work release program to save the city jail costs for minor offenders who can now work off sentences with public works and parks staff. In 2012 the department will also drive cars an additional 10K miles before they are replaced so will only replace two cars instead of three. The department will also remove the half-time officer from the schools for the Second Step (formerly DARE) program. During a line by line review Chief Bowers explained that the City will save some money by recalibrating radar machines every other year and reducing overtime slightly. She explained that the budget for operating supplies has increased slightly because tasers and firearms are getting old and sometimes need to be replaced. The Chief said the budget for care of prisoners has been brought down with a cost sharing program but going to jail remains expensive and n 2011 that line item will increase which the department can do very little to control. She noted that the Animal Control officer voluntarily cut her overtime budget to zero and said her staff has worked hard to prioritize needs. Mr. Geer thanked the Chief for holding to the 2011 budget and coming in under budget on expenses. He asked why specially funded programs are budgeted at zero. The chief explained that these are now being funded through grants and other ways. Mr. Adams asked about police patrols in the ACFL. Chief Bowers said the City lost its grant funding for that program but still managed to meet requested need in 2011. Mr. Johnson said there has been a dramatic decrease in DARE programs and asked if the program was ineffective. Chief Bowers said research showed it was not having a big impact but APD started the Second Step program because they see value to having an officer presence in the schools. Mr. Johnson asked if cameras to photograph traffic offenders would generate additional revenue. Chief Bowers said the department wrote over 1300 traffic citations last year and feel they are doing a good job without the cameras. Mayor Maxwell added that other cities are facing legal challenges for traffic camera citations. Council next looked at the public works budget. Public Works Director Fred Buckenmeyer introduced his division managers: Assistant City Engineers Matt Reynolds and Eric Shjarback, Facilities Manager Russ Pittis, Operations Manager Sandi Andersen, Wastewater Treatment Plant Manager John Franz and Water Treatment Plant Manager Jamie LeBlanc. Mr. Buckenmeyer observed that public works administration is a very small portion of the general fund and that most of the public works budget comes from utility funds. He noted the labor added to the Water Distribution System section of the General Fund which is to cover the cost of fire hydrant maintenance per new case law which requires this to be funded by the general fund. Mr. Buckenmeyer advised that facilities maintenance was transferred from the Parks Department to the Public Works department during the year and still shows under 001.10.36. Mr. Pittis reviewed the "bare bones"facilities budget. He said he projects a 3% natural gas rate increase and an 8% PSE increase based on PSE's pending request. He said conservation efforts are paying off in consumption. Painting City Hall is budgeted at$78K. Mr. Pittis noted elevator maintenance expense declined after this year's overhaul. Mr. Johnson observed that the overall facilities budget is $30K less than 2011. Mr. Pittis said yes. Mayor Maxwell explained that capital expenditures can skew budget results. Mr. Johnson inquired about the schedule for building maintenance and the mayor explained. Anacortes City Council Minutes September 26, 2011 1 Mr. Buckenmeyer turned to Street Maintenance Fund 104. Mr. Hoglund advised that street maintenance revenues come from property taxes and gas tax and this year will include $110K of REET for a street overlay project. Mr. Geer asked if the recent exemption of Washington State Ferries from fuel tax impacts the City's fuel tax revenue. Mr. Hoglund replied that it will affect the City budget but not in Fund 104. Mayor Maxwell noted that legislators are looking at some possible mitigation for affected communities. Mr. Buckenmeyer addressed Fund 104 expenses. Ms. Andersen reported that the crack sealing budget has gone up$10K to make streets last longer and thermal striping has gone down $10K. She highlighted the $18K line item for the sidewalk program wherein City crews build sidewalks where homeowners pays for the materials. She reported that street lighting is by contract and the City can't control that cost. Mr. Shjarback then described the street overlay budget of $104K. He noted the City hasn't done any overlays for a couple of years and in 2012 will be leveraging with Safe Routes to School project funds to repave I Avenue and possibly other areas. Mrs. Richardson asked how pothole repairs are prioritized. Mr. Shjarback replied that the Engineering Department is working on a long range plan. Mr. Adams noted that citizens and report potholes on the City website and said crews do fill potholes that are reported. Mr. Buckenmeyer turned to Arterials Fund 105. Mr. Hoglund said no large projects are slated for 2012 so the City has not directed much revenue to this fund but it will receive some property tax and some interfund transfers plus $15K of cash reserves. Mr. Buckenmeyer addressed Fund 105 expenses. Mr. Shjarback noted that the Old Brook Lane project is grant funded so does not appear in the budget. He called attention to the $5K line item for traffic calming and non-motorized which the Traffic Safety Committee will use for striping and signage projects. He said the $35K for miscellaneous sidewalks will follow up on the successful ADA ramp project in 2011 paid for with CDBG funds and noted they can build about 14 ramps with $35K and will be working along the M Avenue corridor. The $25K budgeted for the Guemes Channel Trail will be used for survey and permit work. Mr. Shjarback noted that the budget does not reflect it but the City is pursuing many grants to fund other projects including a TIGER 3 grant to complete the trail all the way from March Point to the ferry terminal. Mr. Buckenmeyer turned to Water Fund 401. Mr. Hoglund explained how capital reserves will be used for debt service and the WTP improvement project and how utility billing and capital reserve charges are projected. Mr. Buckenmeyer addressed Fund 401 administrative expenditures. He noted that the legal services line item is misnamed and that the budget is much smaller for 2012 now that ongoing litigation, negotiations and studies have been concluded. He note $10K budgeted for a water rate study for any adjustments required based on the WTP project. Mr. Reynolds addressed Water Fund capital projects. He said the CWSP was last updated in 2000 and there is no legal requirement to update it but DOE recommends 6-year updates so that is budgeted for 2012. He said the WTP improvement project will be ongoing to 2013. Waterline replacements is an ongoing annual line item and in 2012 the department anticipates working on 18th Street between M Avenue and K Avenue. Regarding the Pass Lake 10"waterline Mr. Reynolds said this 1940s vintage steel line is due for replacement and $100K has been budgeted for engineering in tough location. The$500K Padilla Bay line item will pay for the property acquisition for that project after final appraisals come int. Mr. LeBlanc then addressed the Water Treatment Plant budget. He noted $2800 for a firewall for the computer network. He said the contracted services line item is for the annual Consumer Confidence Report and printing pamphlets. He said the Training/Travel budget is to meet L&I requirements for hazmat training and noted staff is attempting to save costs by utilizing on line training. He reviewed planned expenditures for the water treatment plant intake structure. In response to a question from Mr. Petrish, Mr. LeBlanc explained that fire hoses are used for cleaning the sediment basins, not fighting fires. In response to a question from Mr. Adams about electricity costs to run the pumps, Mr. LeBlanc stated that the new water treatment plant will have much more efficient but also larger pumps. Mr. Johnson inquired why the Distribution System Security budget had fallen to zero. Mr. LeBlanc explained that the department has completed purchasing security cameras for the pump stations. Turning to capital projects, Mr. LeBlanc pointed out the budgeted amounts for the intake eductor, streaming current monitors, and intake traveling water screens. He clarified that the current water treatment plant improvement project doesn't address intake structure components. He concluded by noting the $100,000 Anacortes City Council Minutes September 26, 2011 2 line item for Reservoir Internal Maintenance because the 3MG reservoir has been assessed and may need some repairs. Ms. Andersen then addressed the Fund 401 budget for the water distribution system. She noted the $5,000 line item for meter reading equipment, $4,000 to replace worn road plates, and $50,000 for repair and maintenance which is up in 2012 because every 4-5 years the City goes out to bid for sand to stock up for several years. At approximately 10:15 p.m. Mr. Petrish retired from the Council chambers. Mr. Reynolds then addressed the Fund 401 budget for the water transmission system. He noted the $350,000 line item to relocate 16"asbestos cement waterline along U Avenue. He also explained that the North Texas Road waterline replacement is expected to finish in 2011 so has no budget for 2012. Mr. Buckenmeyer next turned to Sewer Fund 440. Mr. Hoglund said the budget projects revenue at current volumes with a 2% rate increase limited by ordinance. Mr. Shjarback noted the $300,000 line item for inflow and infiltration (I&I) which staff hopes will complete the ongoing project in the L District. He explained that the project works to prevent stormwater from entering pipes and overloading the sewage treatment system during storm events. Mr. Franz then addressed the pump station budget. He noted the decrease in electricity usage. Turning to the Treatment Plant Mr. Franz noted a reduction in the price of chlorination supplies but an increase in dechlorination supplies. He said the incinerator will have more overtime expense in 2012 because of two mandatory maintenance shutdowns. Regarding capital expenditures he pointed out the heat exchanger replacement which will be the next big project at the plant. Ms. Andersen noted the Repair and Maintenance budget is up to $10K for 2012 due to a bulk purchase for rodent control. Mr. Buckenmeyer then addressed Storm Sewer Fund 450. Mr. Hoglund said revenue projections are based on current trends. Mr. Buckenmeyer said the budget for NPDES permitting is up because the cost of the permit is being increased by Department of Ecology. Regarding capital projects, Mr. Reynolds said storm drains will be installed at J Avenue and 24th Street as part of the storm drain master plan and noted the line item for outfall reconstruction which will probably be used on Fidalgo Bay Road. Mr. Buckenmeyer next turned to Sanitation Fund 450. Mr. Hoglund said the City is projecting flat revenue in this fund. Ms. Andersen noted that the budget for long haul to the sanitary landfill continues to fall. She noted that the City currently hauls sweeper debris itself but may change that for decreased expense. She reported that the $138K line item for Operations Facility Material Handling will pave the yard at the shop which receives significant wear and tear from the heavy equipment. Mr. Buckenmeyer concluded the review with Equipment Rental Fund 501 which he explained covers vehicle maintenance and vehicle purchases. He noted the $50K line item for generator load testing and explained that previously this was part of the WWTP budget in Fund 445 but will now be done at the Operations Shop so the budget has moved. He praised staff for reducing the radio maintenance budget down to $5K. He said the $700K line item for new vehicles includes a new garbage truck. Mr. Johnson inquired about the revenue figures. Mr. Hoglund explained that in a given year Fund 501 revenues exceed expenditures because they come from other funds to build for future replacements. There being no further business, at approximately 10:40 p.m. the regularly scheduled Anacortes City Council study session of September 26, 2011 adjourned. Anacortes City Council Minutes September 26, 2011 3