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HomeMy WebLinkAbout11-24-2003 - MinutesMEDINA CITY COUNCIL STUDY SESSION MINUTE: November 24, 2003 Medina City Hall 6:00 PM 501 Evergreen Point Road Mayor Becker called the Council Study Session to order at 6:04 p.m. ROLL CALL Present: Council members Miles Adam, Drew Blazey, Thomas Morgan, Todd Nunn, Bob Rudolph, Deputy Mayor Mary Odermat and Mayor Dan Becker Staff Present: City Manager Doug Schulze, City Attorney Kirk Wines, Public Works Director (PWD) Shel Jahn, Police Chief Michael Knapp, Planning Director Joseph Gellings, and Recording Secretary Caroll Wedlund OTHER BUSINESS Discussion of 2004 Budget Goals --City Manager Schulze thought there might have been misunderstandings regarding what the individual line items were actually paying for, and referred to his explanation in the summary page of the 2004 budget, version "F". He noted the 2003 projected year-end budget had been adjusted to reflect the most recent expenditures and revenue reports received at city hall. The September monthly sales tax report had also been received today, and it had increased substantially to $123,000. City Manager Schulze relayed the city had been receiving between $40,000-$60,000 in sales tax per month up to this point. The Council had by ordinance increased the Real Estate Excise Tax in November 2002 by an additional .25 percent to the maximum allowed by law. A Council member requested City Manager Schulze check to make sure the Real Estate Excise Tax rate was changed. The Council recessed at 6:10 p.m. and reconvened at 6:23 p.m. City Manager Schulze highlighted the changes between version "D" and "E" of the 2004 preliminary budget. He relayed the changes made reflected a decrease in expenditures of $230,000 and a decrease in transfer funds of $17,000. The total ending fund balance would result in an increase in the ending fund balance from $3.5 million to $3.81 million. This left a hole of $410,000 more than current year revenues. To not reduce reserves further would require action on the part of the Council. Property tax was affected by three different elements, the rate set by the Council, the County Assessor's annual assessment of property in Medina, and through completed building projects. City Manager Schulze relayed overdue permit fees sent to collection were starting to be recouped. He noted the final permit fee must be paid before a Certificate of Occupancy was issued. City Attorney Wines explained a Certificate of Occupancy was important to a significant number of lending institutions, as an owner was required to disclose if the property did not have one. By ordinance, Medina had an arrangement with the col ection company to add 40 percent to the bill and keep it, so the city was made whole. However, the city could nct place a lien on these properties. City Manager Schulze predicted building permit revenue would be very close to $600,000 by year-end. At the end of October, the amount was about $410,000, and the city vnas expecting a permit fee payment of approximately $150,000. Further, delinquent fees had not been projected into the $600,000 year-end revenue estimate. City Manager Schulze stated the city had a contract with Hunts Point for police service, which was set up via a percentage of the MPD operating cost. He volunteered to provide the Hunts Point police contract formula. Under 2004 Legislative Professional Services, City Manager Schulze noted the Council had not identified any specific projects or work for the consultants involved with jet noise mitigation or the SR-520 issue. The $20,000 amount in that line item was for any projects that may arise. Followirg discussion, Council consensus was to keep the Legislative Services budget amount at $20,000. City Attorney Wines relayed the city had incurred significant outside legal expenses for the Medina store historical use permit application process. City Manager Schulze noted those legal expenses would be charged to the Legal Services account, adding it also included outside legal counsel for potential lawsuits as well as funding for City Attorney work that was not covered by the retainer. A Council member requested a final 2004 budget breakdown of total professional services for the city, total city salaries and total benefits. City Council Study Session Minutes November 24, 2003 Page 2 Under the Police Department proposed budget, City Manager Schulze explained merit pay was projected for eligible officers. He noted tuition reimbursement was in their employment agreement, and all the city unions included it. He relayed part of the reason Police Travel and Training showed a lesser amount was MPD had been down three officers for the year, and they were having to fill shifts rather than attend training. City Manager Schulze cautioned accreditation standards required a certain amount of training, and the city would not want to reduce that portion of the budget very much. Chief Knapp added Medina had joined a coalition of agencies who shared training costs. City Manager Schulze hoped MPD's jail services interlocal agreement with Yakima County would be final in December. A couple of the involved cities had raised objections, which slowed the process. Chief Knapp explained part of the contract fee for Mercer Island Marine Patrol services was for vessel repair, and the final year-end amount had not yet been determined. City Manager Schulze explained the Emergency Management line i:em should be funded if the city were to continue that program. There was a significant amount of work remaining. It would be difficult for existing MPD personnel to coordinate the emergency preparedness job. He explained the city was not entitled to FEMA grants unless it had an Emergency Management Plan. Once the plan was completed, in order to maintain eligibility for FEMA grants, the city would be required to report and keep current with a number of elements. Chief Knapp added coordinating the community into a workable unit was the costly part, rather than the quarterly emergency management meetings. City Manager Schulze added this would be ar ongoing expense, and they did not know yet what kinds of supplies and materials would be purchased for the city. He suggested the Council add an additional $5,000 to the Emergency Management fund until the Council had an idea where the Emergency Management Committee was going with their expectations. By consensus, the Council decided if the city had a solid Emergency Management Program by the middle of the summer, the Council could request more money. When asked why the 2004 Building Department projections were so much lower than 2003, City Manager Schulze explained in 2003 a portion of the Planner's pay and a part of the Public Work Director's salary had been attached to that line item. For 2004, the only salary under Building Department was that of the Development Services Coordinator, which was split between Planning and Building. He explained the city did not have staff to provide consulting services that were related to Building Department permit activity. There was no one to fill in for the Building Official or the Building Inspector. The only way to achieve efficiencies in those line items was to not take in permits. City Manager Schulze noted the consultants currently filling the Building Official and Building Inspector slots had provided the lowest bids for their services, and he did not think the city could find consultants who would charge any less. He noted the city was reimbursed for plan review. City Manager Schulze stated it had been awhile since the current fee schedule had been updated, and that would be one way to increase city's revenue. City Manager Schulze pointed out the new Uniform Building Code would be brought to the Council for adoption in 2004. It did not have a fee schedule, and the Council could take that opportunity to include one at that time. He did not think it was reasonable to expect other taxpayers to subsidize building permits for individual improvements. He noted Medina's process was complex, due to adopting ordinance upon ordinance that required more staff and app icant time, resulting in higher costs. The city was facing threatened litigation regarding permit fees that some applicants thought were too high. He did not feel comfortable making any significant changes until these threatened suits had been through the legal process. City Attorney Wines added there was no other community in Washington that charged renewal permit fees at the original rate every 18-24 months. The applicants must pay a full building permit fee based upon the known costs of construction, which were generally more than what had been estimated at the beginning of the project. The Building Official required applicants produce their records, resulting in a higher amount. City Manager Schulze explained the new Tree Ordinance would require a lot of the Landscape Consultant's time. The Code required landscape consultant approval for many of Medina's permits. He noted $40,000 was included for a planning consultant to complete the state -mandated Shoreline Management Plan update. In 2003 the city had not been providing the services it was budgeted to offer because Planning Director Gellings had been doing as much as he could. Gellings added his billing last year had been 100 percent for Medina and 20 percent for other clients. City Manager Schulze reported he had recalculated the Lifeguard Program cost. He noted the city had reduced the time it provided lifeguards in 2003 by four weeks. Most of the lifeguards were college students who anticipated a certain amount of money for school and needed relatively consistent employment. PWD Jahn indicated $20,000 contingency amount was needed to cover unforeseen contingencies, as he did not wish to go through a budget amendment process for issues that came up periodically. Further, $20,000 in City Council Study Session Mlnutes November 24, 2003 Pg p,. 3 funding did not mean he planned to spend that amount. Council consensus was to decrease Parks Miscellaneous by $10,000 for contingencies, and not fund the two paving projects at Fairweather and at 82nd Avenue NE at this time. If the city needed them later, that line item could be reinserted into the budget. City Manager Schulze emphasized due to environmental regulation, the city was required to pave in back of the Medina Shop. PWD Jahn inquired about funding the salmon incubator. City Manager Schulze explained a study conducted 3-4 years ago had revealed the stream would probably not have sufficient flow to really provide a salmon habitat. Additionally, there were a number of other issues to consider, such as lack of shading, water temperatures, lack of woody debris and no rocks for resting areas. The consultant who Conducted the study had indicated it would be difficult and expensive to create a salmon habitat. At that point, Medina's restoration project had not been funded beyond 2003. A Council member noted it took three years for salmon to return, and that long before one could determine whether or not the project would be successful. It was suggested discussion of salmon incubator funding should be deferred until the Council was provided Nith costs incurred so far for this project. City Manager Schulze offered to provide this information at the December meeting. PWD Jahn volunteered it would cost $2,500 to make sure the physical plant was functioning properly. A Council member inquired what equipment would be replaced in the Replacement Fund. City Manager Schulze explained maintenance had been very expensive for one of the city's PD vehicles, and car radios must be replaced, as well as portable radios carried by the officers. Two PD vehicles had well over 100,000 miles, one was scheduled for replacement, and the radios would be replaced over time. City Attorney Wines left the meeting at 8:35 p.m. PWD Jahn indicated the city was behind with street maintenance, because the 2002 budget had not reflected any input due to the PWD transition. PWD Jahn explained the city would use the small works project roster for the majority of small projects. However, the PW crew would do whatever they could with the manpower at hand. City Manager Schulze noted this maintenance would not disappear if deferred. He relayed PWD Jahn and his staff identified items needing repair and responded to complaints, which was the reason for the increase in this budget area. In the past, small works repair projects had not reached him, resulting in a real expense problem now for the city. PWD Jahn added Medina's infrastructure had been neglected a long time. Following discussion, Council consensus was to leave the requested road maintenance amount as proposed. Mayor Becker indicated the Council had voted last year to increase real estate tax to the maximum amount. City Manager Schulze added an ordinance had been adopted and filed with the county to enact this increase. It was requested the City Manager verify that Medina was charging the maximum in real estate tax. PWD Jahn was fairly confident he could come in under budget for the Capital Projects Fund this year. City Manager Schulze distributed copies of a few slides addressing the 2003 PW and PD performance activity, noting the savings incurred as a result of their initiative. Council member Nunn left the meeting at 8:49 p.m. Introduce 2004 Fee Schedule Recommendations --City Manager Schulze reported he was responsible for providing the Council with a proposed fee schedule, but Council actior was not needed for approval. However, the Council had an opportunity for objection if they so wished. He had identified a number of areas in the Code that years ago set a fee for service rate. Any time the city wanted to increase the fee schedule, the particular ordinance covering it must be amended. Therefore, he had included a suggested fee schedule recommendation in the Council packet showing how higher fees could increase total annual city revenues by over $90,000. Also included was a proposed ordinance for higher fees to recover actual costs of providing services for all activities except development permits. City Manager Schulze stated if the city mandated business licenses, contractor - licensing fees could also be collected. However, it was difficult to identify and track all of Medina's home occupation businesses. City Manager Schulze also relayed the city was in a three-year window to begin negotiating cable franchising. Council consensus was to place the ordinance establishing a schedule of fees on the consent agenda for the next Council meeting, and the actual fee schedule could be passed later. City Manager Schulze suggested discussion of how to recoup the remaining $182,000 deficit should be a priority for next year. It was noted the city would receive more revenue before year-end. City Manager Schulze promised Finance Officer Burdue would change the numbers for version "F" of tl-e proposed 2004 budget for inclusion in the December meeting packet. City Council Study Session Minutes November 24, 2003 Page 4 Introduce Small Works Roster Interlocal Agreement--PWD Jahn noted there was no cost to Medina for the Interlocal Agreement with the City of Lynnwood for the Shared Public Works Small Works Roster. Lynnwood was justifying positions by offering their services to other cities. He explained Lynnwood personnel had negotiated contracts and Medina could become a member of the Shared Small Works Roster maintained by that city. City Manager Schulze explained all the other cities had agreed to participate in this Interlocal agreement. It was a cooperative interagency agreement in addition to a small works roster. Every city signing the agreement was eligible to purchase from that contract at a lower rate without redoing the whole process. The Council agreed by consensus to place the Small Works Roster Interlocal Agreement on the December consent agenda. Review Council Calendar — December 2003--City Manager Schulze reviewed agenda items for the December Council meeting. There were no changes to the Council December calendar as proposed. NEW BUSINESS Personnel Committee Meeting --It was noted the Personnel Committee would meet prior to the next Council meeting. ADJOURNMENT• By common consent, the meeting was adjourned at 9:18 p.m. Daniel Becke-, Mayor Attest: Caroll P. Wedlund, Recording Secretary