HomeMy WebLinkAbout09-18-2000I. CALL TO ORDER: Vice Chsir Rich Wagner called the meeting to order at 6:00 pm
in Chair Sue Singer's absence.
]~dlli~,r.~i~r_c~c~: Vice Chair Rich Wagner, Coun~ilmember Trish Borden, Councilmember
Fred Poe. ]~ILl~g~.llLhlgllid~: Mayor Chuck Booth, A/Chief Russ Vandver, Chief Jim
Kelly, A/Chief Marion Dukes, Plan. Dir. Paul I~auss, Parks Dir. Dick Deal, Solid Waste Sup.
Sharon Conroy, Finance Dir. Diane Supler, City Eng. Dennis Dowdy, and Secretary Jeanne
Herold
H. CONSENT:
~Jli:phlL]~..~: Jim Kelly asked for approval to surplus three MDT's (Mobile Dispatch
Terminals) that have been replaced by laptop computers. Councilmcmber Borden made a
motion approving smplus of the MDT's. Vice Chair Wagner concurred.
~ill8~[i/fl~: Russ Vandver asked for approval of Ordinance No. 5435, an Ordinance of
the City Council of the City of Auburn, King County, Washington, approving acceptance of
~ut funds from the State of Washington Military Department Emergency Management
Division, in thc amount not to cxcccd two thousand dollars ($2,000.00) and authori~/ng
execution of Contract No. EM010298 approving the expenditure and alJiJ, opriation of said grant
Russ Vandver exp!,inod that basically the Fire ~t could acozpt $2,000 in gnmt funds
fio~the State for aWeapoosofMassDestn.mti. 'unDdlL This was atmmlly a drill thatthc fire
department already participated in and the State warned Ibc funds disseminat~L Consequently,
the r~ut was bacltdmed-and the fire depmtment was reimbursed for ,their overtime and
participation in thc drill Councilmember Borden madc a motion to aplJfovc ordinance No.
5435. Councilmcmbor Poe seconded the motion. Vice Chair Wagner concurred.
Lease A~r~ eements for the ennsl,uetton of private hangars at Auburn Municipal Airport:
Paul Krauss explained that there were a nmnber of questions that were raised. One of the things
that was asked for was that the lease start at the time of the building permit and that was agreed
upon but said that the Lessees had to get a building pcmdt within 90 days. Crhis appears in
- . There was also a question as to whether or not the Lessees could sub
lease without City interference and the City agreed that they could. In particular, at least one of
the Lessees will have a multi-space hangar.t'rhis appears in Section 26. Page 10-Assisgnment
~). Mr. Krauss also explained that an "Appeal Process" was added for the 5-year rote
adjustments which was one of the things that had previously been omitted. CThis appears in
Section 7. Page 4-Procedure to Determine Adjusted Rent-Fair Market Valuel. Every five years
the City would retain an MAI appraiser and then come up with a number. If the Lessees
disagreed with that, they could obtain a different appraisal at their expense and that could go to
an arbiWator and the arbitrator's ruling should be final. It established an "Appeals Process" and
restricted the amount of bond authority, which would incur, which was something that they were
Municipal Services Committee Meeting 1 September 18, 2000
concerned about. Discussion ensued. It was agreed that the language in the second paragraph of
Section 7, Page 4 would be adjusted.
Mr. Krauss brought an illustration of the hangar lease spaces to the meeting for the Committee to
review.
Councilmember Borden had a question regarding the 5-year time period - that the way the
sentence was written, the statement was only tree for the first, 5-year time period. She wondered
how Mr. Kmuss felt about that. Also, if the arbitrator thinks it should be less then the prior 5-
year time period. She wondered how that jived with the sentence, "In no event shall the rental
amount established be less than that paid during the prior 5-year time period" in the second
paragraph of Section 7, Page 4.
Mr. Kranss explained that when he and Mike Reynolds were reviewing that, he stated that there
was a lot of discussion about the first year and not being able to go backwards. What was
decided, was in order to clarify matters, the best thing to do was to go with the Market Rate
Adjustment. Discussion ensued further regarding the language of the second paragraph in
Section 7, Page 4. That paragraph to be reviewed by the City Attorney and the language re-
worded.
Couneilmember Poe discussed Section 5, Page 3- -- ' and Section 6, Page
3-Procodure to Determ'me Ad)usted Rent-Annual. He understood Mr. Krauss suggested
eliminating Section 6 and 7 and use the CPI. The CPI annual adjustment end an avv, aisal are
contradictory. Mr. Poe asked Mr. Kxauss to contact the Lessees and see ffthey would agree with
all annunl CPI adju~huent and forget the 'alJt,l~isals. Cooneilmember Wager stated that he didn't
feel it was contradictory and that the City had double protection. This particular subject was
Diane Supler explained that she felt it would have to be something greatel' than the CPI. And she
didn't feel the CPI was enough to cover the total cost becanso the City does not increase overall
on the average at the Airport to maleh CPL It increases at a greater rate. Cooneilmember
Wagner stated he was comfortable with the current version fi, the sentence that states" In no
event shall the rental amoont established be less than that paid during the prior 5-yeer time
period." He asked Councilmember Borden how she felt.
Councilmember Borden stated that it seems thc main disagreement is whether thc ap},,,isal is
going to be higher then the CPI adjustments or lower.
Paul Krauss stated that he would like to bring the lease back to the Committee one more time.
Also, Mr. Krauss stated that another thing that he wanted to clarify, that was not in the lease is
that the City only wants to do one appraisal to apply to all the leases. It was agreed to pull this
fxom the Council agenda.
Cooncilmember Borden stated that she had a problem understand'rog that portion and would also
like clarification.
Councilmember Poe also stated that the lease does not address the primary purpose for
construction of aircraft hangers and he thinks that should be included. The other area that he
didn't agree with was the portion referring to, at the end of 30 years the Lessees can pick up the
Municipal Services Committee Meeting 2 September 18, 2000
hanger and take it away. Mr. Krauss explained that was discussed and that after the 30 years, it
would be thc City's election as to whether they did or not. Mr. Poc stated it should then be
written that way. Mr. Krauss also explained that Mr. Poe's approach of giving thc Lessees a ten-
year option and then thc City owns the hanger, would loc appi¢ciated because that allows thc~m to
go up to a 40 year term which is easier for them to finance. Mr. Krauss stated he would return
with the Lease Agreement again at thc next meeting.
m. INFORMATION/DISCUSSION
~lgl~L~I~fl~: Diane Supler made an Introductory Statement. The general budget
instructions for the General Fond were 0% increases and no Program Improvements. The only
increases allowed overall for departments would be for various types of contracts that could be
put through for the direct cost associat~l with that contract and increases for salaries.
2001 Fire Department Bud_uet Presentation: Chief Vandver explained that basically, the fire
department budget will reflect no inercuses, no new employees, no Program Improvements. It's
basically the same as last year. There were some minor inereuses for utilities, but concentrated
on areas such as emergency medical services. Required training will be fairly dose to what it
was last year. No large expenditure items.
Councilmember Wagner asked if anything was going to have to be done about the facilities at
GSA. Chief Vandver explained that the lease contract was just re-negotiated and it increased
approximately $20,000 a year. Mr. Wagner .also asked a question regarding the effects of the
Lakelake Hill annexation. Chief Vandver explained that fight now it is not a high volume call
area. Cooncilmember Wagner asked if there were any additional expenses with the annexation
of Lea Hill. Chief Vandver explained that right now Auburn isennWaeting with Lea Hill. The
fire department contracts back to that district for the services in the area that has been annexed.
2001 Police Department Bud_uet Presentation: Chief Kelly explained that the 2001 Police
Budget would be a 0% increase. Mainly funds are being ri:allocated and asked Assistant Chief
Dukes to erplain in ~_~,'l A/ChiefDnlm~ ca, plained~ the Police Department will reflect no
increases, no new =,,:,loyees, no Prom~,~ I-,?vvements. Things that the PD absolutely had to
have will be ~ined *;m?ly by slfifdng money. There are several areas that couldn't be
aecom~lisbed, and that was the contracted items for wages and benefits. WCIA Insurance costs
have gone up.
An area that the PD is looking at opfimi~cally, howeve~ are jail costs. Costs of contracting for
outside services have been coming down over the last couple of months. The Home Arrest is
working. The PD is now collecting fees for people that are actually on the Home Arrest
Program. Costs for next year are projected to be about $80,000 a month and hopefully below.
Other than that the Police Depa~h,,ent is within the 0% increase.
2001 Solid Waste Bud_~et Presentation: Sharon Conroy explained that the basic costs that have
gone up are for Professional Services. Thc litter program with Vadis i.nercascd from about
$53,000 to $70,000 with an increase in service area. The Residential Spring Clean up went up
almost $$,000 because of disposal of large items. There is an increase in the Operating Expense
of $72,000.
Municipal Services Committee Meeting 3 September 18, 2000
Councilmember Wagner asked about the cost of the proposal to go to curbside recycling. Sharon
Conroy explained that if there were an increase it would be brought to the Committee at that time
' when there is a contract and the rate is known. Mr. Wagner asked what the 2.7 million working
capital mount was ever going to be used for and why it is maintained at such a high level.
Sharon Conroy explained that it is her understanding that a level of one million was to be
maintained in that account and when she came on board last_ year, she felt that was very high.
But, she did not have an answer at this point. The City may be faced with the possibility of the
closure of Cedar Hills and the reserve is for protection.
Sharon Conroy went on to explain that approximately $40,000 was put into the budget under
professional services for a solid waste consultant to look at the cost and debt serWce, rate studies,
and also to assist with a contract. Thc current contract runs until June 2001. Councilmember
Poe asked ff re-negotiatiun would be made with the current contractor and wondered if there was
the possibility of going out to bid. Ms. Conroy explained that there is still time before having to
bring this to the Council and she would like to work with a consultant to get an expert opinion
and then look at a bid versus negotiations, then present the pros and cons. The bids would
consequently include curbsidc recycling. Curbside Recycling was discussed at length but the
consensus of the Committee was that time was of the essence.
Councilmember Borden stated that she felt the Solid Waste Division should be planning this now
and getting the numbers together earlier than January. She thinks the City needs a firm price on
hauling garbage and recycling.
A cost of service study was also discussed at length. Dennis Dowdy explained that there's a
question as to whether there's equity between what is charged to the different classes of
customers, the business versus the residential. There's not a lot of confidence that the City's
negotiated rate shows that equity. He felt that the biggest benefit in a cost of service study is
making sure there is some equity between the classes of customers.
Councilmember Bor6en asked why the City eonlda't go out for bid for recycling and then work
on a cost of service study later, in t~ of equity. Dennis Dowdy stated that he felt that staff
needs to get into it to see what is feasible before getting Council to at prove a cost of serwce
study. There's a lot of work to be dune. Discussion ensued regarding securing a consultant.
2001 Air, o_ rt Budget Pro_nos:d: Paul Krauss explained that the budget was to reflect 0%
increase but basically the Airport reflected a couple of project~ going on into 2001. The first
project was to proceed with the groundwork to construct an additional 20 hangars and essentially
had that as a Capital Expenditure covered by a bond issue. In addition to the construction of the
hangar building, Airport would like to get enough funds from thc bond issue to cover the
remaining 1-3/4 roves that need to be replaced.
Councilmember Wagner asked what the secure over-run area was in the south end, it was a 2000
goal and now it's a 2001 goal. Mr. Kranss explained that is the Park 'n Ride Facility. The City
still wants to obtain a part or all of that and hoping that as the Sounder station comes together
that the County will be more willing to negotiate. The FAA has indicated a willingness to pay
90% of that, should the City be able to obtain that property. Part of that, however is going to be
reflected in the Airport Master Plan which would serve as a basis for getting an FAA grant.
Municipal Services Committee Meeting 4 September 18, 2000
Mr. Krauss stated that looking at the spreadsheet, in the fa'st set of revenue numbers, it reflects
Tie Down and Hanger Rent is increasing significantly. Mr. Kranss indicated that hc was advised
by Finance that the 2001, $392,600 does not include thc additional twenty hangars and the
revenue from those additional twenty hangars ought to be better than the revenue for the first 40
because there are less expenses against it.
The Operating Expenses are up $20,000 in large part because a maintenance line item was added
to have some money set aside for maintenance. Looking at the Working Capital, it should close
in 2001 with $62,000. Councilmember Wagner asked why the grants for next year were so low. '
Mr. IQ'ams explained that most of the grants for this year had already been received. In 2001,
there really aren't many programs but in the year 2002 the Airport is programmed by the FAA
for a m-surfacing project, which is fairly expensive. Mr. Krauss explained that Finance is going
to be working with him to refine the numbers and he feels that 'the Working Capital will go up
somewhat, especially if the additional hangars are done.
~001 Golf Course/Cemetery Budget Proposal:
~LF COURSE: Dick Deal presented the Golf Course Working Capital Budget and Golf
Course Revenue History sheets. Mr. Deal explained that the Golf Course Operating Revenues
have grown over the last few years. On the Golf Course Revenue History sheet looking at the
bottom line under grand total, figures were decreasing every year until about 1995. Three
courses opened up in the area then and the City of Auburn's revenue dropped quite dramatically
but it is growing again and will be quite close to a million dollars in greens fees this year and
next year should exceed that.
The Budget is based on a $980,000 revenue stream for 2001 and that's being very cautious and
conservative. Regarding expenses, there are still six full time employees, the staff employs five
seasonal cmlJloyees for up to four months to help with some of the litter control, flower bed
cleaning and other minor maintenance on the golf course. The supply budget is going up slightly
for the year basically for fertilizers, fungicides, imgation parts, .qmall tools, equipment repair
items, top dressings, sand, etc. In 2001 the golf comae will be using City water for irrigation.
To this point the golf course h~ not used City water but all the connections are being made and
they will be in place very soon to use City water for all of the irrigation resource in the future for
a cost of about $35,000.
In terms of projects for thc year, rebuilding of the course will continue. In the 2001 budget there
are plans to rebuild the 6a green and a car path to the 6a hole,' make some irrigation
improvements to the 6a fairway and purchase a couple mowitlg pieces of apparatus as well.
~ME~RY: Dick Deal explained that there is no change in the amount of employee at the
cemetery for the year 2001. There are seven full time employees and three seasonals.
Councilmember Wagner asked what item 397.100(Resources Other Than Operations)-Opemting
Transfer In was. Mr. Deal explained that was the "Endowed Care Fund". There is over one
million dollars in the Endowed Care Fund now. That's a fund that is intended to perpetually take
care of the cemetery once property can no longer be sold. The interest from that fund can be used
for capital improvements as per Cemetery Board. $185,000 would be a portion of the interest
fund from the "Endowed Care" that has accumulated over the last few years and that would be
used to develop the first phase of the building for indoor services and some small capital
equipment purchases as well.
Municipal Services Committee Meeting 5 September 18, 2000
Paul Krauss wanted to give thc Committee a hcads up that thc Sound Transit Parking Garage has
been out for bid on a Design Build Process. There were three bids. The results of that are not
public yet but the apparent low bidder has proposed building a larger garage then had been
specified for a lower price then had been anticipated. The result is that the City may be in a
position to purchase for City use up to 160 spaces at a very low price.
ADJOURNMENT:
There being no further business, the meeting was adjourned at 7:25 pm.
Je~--¢ Herold, S~'eta~y
Municipal Services CommiRee Meeting 6 September 18, 2000