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HomeMy WebLinkAbout07-24-2001sp SPECIAL CITY COUNCIL MEETING July 24, 2001 4:30 PM COUNCIL WORK AREA 2002 BUDGET PLANNING WORKSHOP MINUTES I. Call to Order The special meeting of the Auburn City Council for the 2002 Budget Planning Workshop was called to order at 4:35 PM in the Council Chambers located in Auburn City Hall. Mayor Charles A. Booth and the following Councilmembers were present: Jeanne Barber, Fred Poe, Rich Wagner, Pete Lewis, Trish Borden, and Stacey Brothers. Councilmember Sue Singer arrived at 4:38 PM Staff members present included: Parks and Recreation Director Dick Deal, Planning and Community Development Director Paul Krauss, Budget and Finance Manager Lee Hall, Acting Finance Director Shelley Coleman, Police Chief Jim Kelly, Assistant Police Chief Marion Dukes, Grant Accountant Lanny Petitjean, Financial Analyst Christina Ericksen, IS Administrator Lorrie Rempher, Fire Chief Bob Johnson, Assistant Fire Chief Russ Vandver, Personnel Director Brenda Heineman, Public Works Director Christine Engler, Assistant City Attorney Judith Ausman, and Deputy City Clerk Cathy Richardson. II. Budget Process Overview Acting Finance Director Coleman distributed handouts and explained that the purpose of the Special 2002 Budget Planning Workshop is for a brief overview of the budget process and budget calendar. Council will also review the vision and mission statements, other capital facility projects for the 2002 budget, old and new trends and issues, 2001 goals and strategies, receive departmental updates on the top ten capital facilities, and update goals and strategies for 2002. Acting Director Coleman reviewed the budget calendar and noted that the budget process is strictly regulated by the State by the Revised Code of Washington (RCW). Over the next three months the Finance Department will work with departments to develop the revenues and expenditures needed to achieve Council goals and strategies for the 2002 budget year and will review the 2001 budget and amendments. Special City Council Meeting Minutes July 24, 2001 Page 2 Acting Director Coleman explained that the City is required to hold two public hearings during the budget process. The hearings will be held September 17, 2001 and November 5, 2001. Departmental budgets and goals are reviewed by the Mayor and the Finance Director prior to review by Council committees. A property tax ordinance must be adopted by November 15, 2001 and an additional Council work session will be scheduled prior to that date. The 2002 budget ordinance will be presented for adoption on December 3, 2001. There was consensus of the Council to use the Implicit Price Deflater (IPD) to determine the property .tax levy rate. Budget and Finance Manager Lee Hall stated that the budget calendar provides the steps that must be taken to integrate the goals and strategies together with the financial resources necessary to accomplish the goals. The Finance Department manages the resources by fund, department, and sometimes at division level. The preliminary budget document will contain information at the fund level. It also breaks down the operations for capital projects including revenue estimates and baseline expenditures for each fund that maintains the current operations and programs that were approved in previous budgets. The budget will also include program improvements for the new initiatives that are being proposed for funding. Ms. Hall stated that the Mayor and Council provide input for the baseline and capital portions of the budget prior to publication. III. Vision and Mission Statements Acting Director Coleman noted that the Vision and Mission Statements establish and support the city-wide goals. There was consensus of the Council to retain the Vision and Mission Statements as presented from the 2001 budget. IV. Top Ten Capital Facilities Department Updates Acting Director Coleman presented the top ten capital projects that were identified by Council and referred to the Department Directors for a brief update on each project. Public Safety Building Planning and Community Development Director Krauss reported that the Public Safety Building study has been completed by DLR Group and includes a preliminary design and cost estimate. The project has temporarily been placed on hiatus until after November. There has been discussion of coupling at least one fire station with the Public Safety Building in a bond issue. DLR Group has been retained to look at a prototypical fire station design that could be replicated Special City Council Meeting Minutes July 24, 2001 Page 3 as needed. A south fire station is needed most quickly to serve the growing Lakeland Hills and surrounding areas. The potential design could be used to replace the main fire station in the event of relocation to a more optimal site. The sale of the current site could be used to offset the cost of a new site. Downtown Funding Plan Director .Krauss reported that funding for the Downtown Plan Funding included focusing on the Transit Station and its various components and the Downtown Plan implementation to promote downtown development. Expenditures to date include the purchase of the trail connection along the railroad tracks between "A" Street and the Transit Station and the purchase of property located on Main Street. Other projects include promotion of downtown redevelopment for properties such as the JC Penney building and the tavern block. The goal is to bring downtown to a point where the private sector will see the merit of redevelopment and begin initiating projects. There are other projects associated with the implementation of the Downtown Plan such as the completion of "A" Street North to 15th Street and proposed street design improvements on Auburn Way. Director Krauss explained that the Planning Department plans to move forward with the implementation of the Downtown Plan now that it is now fully staffed. The Downtown Plan is designed for implementation over a period of years. Highway 164 Improvements Director Krauss reported that the Highway 164 Improvements project grew out of the City's support and the effort of the Muckleshoot Indian Tribe to obtain funding for an analysis of Highway 164. The project was divided into two phases. The Phase I study includes short term and short range safety related improvements. The Phase II study includes long term issues such as major traffic capacity. issues and an alternate route to the plateau from Highway 18. The study group included many representatives from King COunty, the Washington State Department of Transportation, the Muckleshoot Indian Tribe, the City of Enumclaw, the City of Auburn, and periodic attendance by Senator Roach and others. The issue of the new alignment to the plateau area is very controversial. King County has opposed the new alignment on the basis that it would conduct traffic through an agricultural area. Senator Roach also opposes the new alignment. Director Krauss explained that the Phase I study has been completed. The City of Auburn has three projects which evolved from the study that have been approved and funded on Auburn Way. There are approximately eight safety related projects in Auburn including access restrictions and redesign south of Highway 18, intersection improvements on 17th Street, and a stoplight on "F" Street. Special City Council Meeting Minutes July 24, 2001 Page 4 Director Krauss reported that the group will reconvene and complete the consultant selection process for Phase II. The group will move forward regardless of the decision of the Muckleshoot Amphitheater EIS. The group anticipates selection of a consultant to occur this fall. Land Acquisition for Future Needs Director Krauss reported that there has been discussion regarding the need for the acquisition of land for potential fire stations due to the rapid development of the City. Possible sites include the south area of "A" Street and also the north proximity of "1" Street. Another issue includes the land acquisition for the proposed Public Safety building. One element for the Public Safety building included a location study. One potential site is in the area near the current Municipal Court and Police building. Property in this area could be used for parking facilities if not used for a Public Safety building. Gateway Improvements Director Krauss reported that implementation of this program includes the design of gateway improvements in the first year with construction beginning in the second year. The Planning and Community Development Committee has compiled a map with potential gateway sites of various designs and discussed linking this project' with a marketing effort. Director Krauss cited the success of Cities of Renton and Tukwila in their coordination of marketing efforts and economic development programs with regard to city image. Director Krauss stated that with the advent of additional employees, he anticipates moving forward with the gateway efforts and similar projects. Transit Station/Pedestrian Overpass Director Krauss reported that the Transit Station has been incredibly successful. Sound Transit is boarding considerably more people than they had projected. The Auburn Transit Station is by far the most successful station with approximately 350 riders per day. At this time, the number of trains is limited. The City and Sound Transit anticipated the level of ridership to decrease with the summer months, but this has not been the case. There is tremendous demand for more trains. Parking is also limited and the future addition of approximately 300 parking spaces in an area located under Highway 18 is a consideration. Community Center Parks and Recreation Director Dick Deal reported that a Committee was formed last spring consisting of twenty-two citizens to study the need for a Community Center in Auburn. The Committee has been working with consultants and an architect to discuss various facilities and sites. The Committee has toured ten various sites in the area including Boys and Girls Clubs, YMCA's, and Community Centers. The Committee will survey approximately one thousand citizens in total. Over five hundred citizens of varying ages have been surveyed to date. The Committee completed an. inventory of existing facilities in the community and anticipates a recommendation to Council by September, 2001. Special City Council Meeting Minutes July 24, 2001 Page 5 ~ The Committee held one public meeting last week and will hold another public meeting this week. Non-Motorized Plan Director Deal reported that the Non-motorized Plan'has been developed and should be thought of as a transportation plan.. Director Deal explained that there is no dedicated revenue stream for non-motorized transportation within the community at this time. Due to lay-offs at King County, the City will have to take the lead and show more aggression with the Non-motorized Transportation Plan to find the revenue needed to accomplish some of the projects on the list. Director Deal explained that the Non-motorized Plan addresses sidewalks, Class 1 trail systems such as the Green River, Interurban and White River trail systems, and Class 2 and 3 trails on existing streets that might require signage and striping to accommodate bicycles. Fire Stations Fire Chief Bob Johnson reported that a fire station location study was completed in 1999. The study detailed response capabilities, growth management issues, and various goals and objectives. The study also included staffing issues which did not reflect the City's needs. Assistant Fire Chief Russ Vandver reported that the' Management Team reviewed approximately ten thousand emergency response reports to determine response times. The information enabled the Management Team to determine real driving time miles per hour from response to arrival on location for the City's three fire stations. With assistance from the GIS Department, the team developed a map showing the areas covered by the Auburn Fire Department. From this information, the team developed a plan that incorporates four fire stations. Assistant Chief Vandver explained that Station 32 is in a very good location but needs to be updated. Station 33 could better serve the City by moving it to the vicinity of 43 and "A" Streets SE. This location would allow the ability to respond to the GSA and Boeing area and the Lakeland area. Station 31 could better serve the City by moving it to the area of 30th and "1" Streets NE which would allow for good coverage for the north end of the City. A fourth station located in the downtown corridor is recommended due to the large number of emergency calls located in the downtown core. Assistant Chief Vandver stated that the Management Team is working with an architect to develop a prototypical design that could be duplicated at various sites. A "cookie cutter" design, rather than a custom design for each facility, would save costs. Special City Council Meeting Minutes July 24, 2001 Page 6 Assistant Chief Vandver explained that moving Station 33 would be first priority due to the rapid increase in population in the Lakeland area. Land options are currently being considered for a new site. The cost for the proposed stations would be approximately $10.5 to $11.5 million. Some cost reductions would include impact fees from Lakeland Hills, sale of City property located on West Valley Highway, and the sale of the current location of Station 33, which could reduce cost to $8 to $9.2 million. The Management Team recommends the City maintain the GSA property on a lease basis for training purposes. Technology Improvements Acting Director Coleman introduced IS Administrator Lorrie Rempher and reported that the IS Division of the Finance Department is now fully staffed. The IS Division pursues ways to increase the efficiency of operations and save costs in the future. The permitting software, Parks and Recreation registration software, and the Fire Department database are being updated this year and staff anticipates upgrading the Police Department database next year. The business system conversion, which began in December, 2000, is approximately one-half complete and should be completed by mid-year 2002. In addition to upgrading the accounting software, Windows 2000 upgrades are needed to support the new program. Approximately fifteen percent of the machines have been upgraded to Windows 2000 with an estimate of thirty-five percent by the end of 2001. Acting Director Coleman stated that the City website has been maintained this year and includes items such as Council minutes and agendas, job applications, and business registration information. An upgrade in the website in the future would provide more information to the citizens of Auburn. The overall goal in the technology area is to implement responsibility and balancing of the technology options. Discussion Councilmember Lewis commented that the Downtown Plan funding is for specific sections in the Downtown Plan and includes incentives for business, such as facade improvements rather than for City projects such as "A" Street. Councilmember Lewis stated that he understood that the reason the Highway 164 project was included on the list of Capital Projects was to show the City's support of improvements to Highway 164 and any corridor road to the plateau. 'Councilmember Lewis also expressed his support of the Gateway Improvements with regard to marketing, physical structures, and trees. Councilmember Lewis requested clarification of Council intent with regard to Downtown Plan funding and Highway 164 Improvements. In response to questions from Councilmember Singer, Chief Johnson stated that there is an existing code which recognizes that any building over seventy-five feet high as a high-rise. Any structure qualifying as a high-rise must include Special City Council Meeting Minutes July 24, 2001 Page 7 sprinklers, fire resistant construction, smoke towers, and other requirements. The need for a ladder truck is driven .by other factors as well as high-rise buildings. High-rise buildings require special fire fighting techniques and training. In response to questions from Councilmember Singer, Director Krauss responded that Michael Hildt was commissioned to compile a financial impact study on the Lea Hill annexation area. Due to health issues, Mr. Hildt has withdrawn from this project. Staff is researching alternatives with regard to commissioning another consultant, completing the study in-house, or bringing in a contracted employee. In response to questions from Councilmember Singer, Chief Johnson reported that the City of Auburn has met with Fire District 44 and significant progress has been made with regard to the Lea Hill area. V. Other Capital Facility Projects Acting Director Coleman referred to an overhead showing other Capital Facility Projects and requested input from Council with regard to additional 2002 projects. The following projects were discussed: · Parking Garage Project · 3r~ Street Project · 277th Overpass' · 277th Intertie · "M" Street Overpass/Underpass (grade separation) · Olsen Canyon/Game Farm Park · Park Development Plan Acting Director Coleman explained that the Parking Garage was included because the City committed approximately $1.8 to $2 million for the retail and parking spaces. Changes in the contract have increased that amount to $2.1 million. The funding has not been solidified at this time and staff is reviewing funding options such as a Section 108 loan for the retail space or a possible Local Improvement District (LID) to sell some of the parking spaces in the garage. In any case, a cash flow requirement will most likely be necessary. Director Krauss reported the Sound Transit contract is under negotiations at this time. In November, 2001, the City will have 180 parking spaces upon completion of the Parking Garage, which will probably need to be paid for at that time. The City has proposed that the payment to Sound Transit for the retail space be staged over three years. In response to questions from Councilmember Brothers, Director Krauss stated that, by earlier agreement with Sound Transit, 45 of the 180 parking spaces will be at no cost to the City. The City requires approximately 20 to 25 spaces to Special City Council Meeting Minutes July 24, 2001 Page 8 support the retail section of the parking garage. The remaining spaces can be used as the City designates. The City also owns the small parking lot on the comer of "A" Street and Main. There is a possibility that this block could be redeveloped, in which case the City could sell that property and use the remaining spaces located in the parking garage. The intent of the City was to use remaining parking spaces as incentive for redevelopment in the surrounding area. There has been discussion regarding the cost per parking space and the availability to other development in the vicinity. Mr. David Allen is developing a restaurant/office building near the Transit Station and has shown an interest in purchasing approximately 100 spaces. Details are being discussed with Hugh Spitzer with Foster Pepper to use a Local Improvement District (LID) format to allow payment over a period of fifteen years. The area near the Transit Station would be designated as the benefit area. The LID would allow property owners the option of choosing to participate in the LID. The zoning ordinance has been changed for that area and parking spaces purchased under the LID can be used towards the number of parking spaces required for the development. In response to questions from Councilmember Wagner, Director Krauss stated that a LID of this nature would cover the cost of all 180 parking spaces. The parking spaces can only be sold for the legitimate costs per space. The City would be responsible for one third of the maintenance and security costs for the parking garage and is researching means to defray some of those costs to the cost of the parking spaces. Discussion followed regarding various means to determine the value per parking space and the mechanisms used to secure the LID. Acting Director Coleman reported that approximately $2 million for the 3rd Street project and $1 million for the 277th Street Overpass project is being held in the Arterial Street fund. Councilmember Borden stated that planning and prioritization are needed to utilize the availability of grant funding for parks projects. Councilmember Wagner requested that Enterprise Funds Capital Projects be added to the 2002 Capital Facility Projects. In response to questions from Councilmember Singer, Director Deal stated that the Park Plan is a six-year plan which was adopted in 1997. The greatest challenge is the lack of a dedicated revenue stream for development. Discussion followed regarding the implementation of park impact fees. Special City Council Meeting Minutes July 24, 2001 Page 9 VI. Trends and Issues - Old and New Mayor Booth recessed the meeting at 5:48 PM for approximately 15 minutes. Mayor Booth reconvened the meeting at 6:02 PM. Acting Director Coleman reviewed the Trends and Issues established for the 2001 Budget, as follows: · Initiative 695 · Initiative 711 · Initiative 745 · Salmon Issues - Endangered Species Act , Water Quality & Supply · Healthy Economy · Increase in Interest Rates · Increase in Revenue - Sales & Property Tax Collections · Adequate Debt Capacity · Increased Transportation Pressures · Increased Population · Annexation Issues · Tight Labor Market · Increase in Capital Projects Costs · Increase of E-Commerce - Loss of Sales Tax Revenue · More Unfunded Mandates from the State · Increased labor Costs vs. Less Increase in Property Tax · Property Tax limitations · More Prisoners in Custody Acting Director Coleman stated that in reaction to Initiative 695, the State Legislature has repealed the motor vehicle excise tax. The State gave the City backfill funding of $185,000.00 for the years. 2002 and 2003, which is approximately twenty percent of what the City would normally receive. Acting Director Coleman stated that Initiative 711 did not make the ballot. Initiative 745 did make the ballot, but was unsuccessful. Acting Director Coleman stated that the economy is not as healthy as it was. Sales tax collected through July, 2001 amounts to one half of one percent additional revenue than received in 2000. Discussion followed regarding interest rates, sales and property tax revenue, debt capacity, transportation, population and annexation issues, the King County Jail contract, and real estate excise taxes. Special City Council Meeting Minutes July 24, 2001 Page 10 The following were determined to be Trends and Issues affecting 2002: · Salmon Issues- Endangered Species Act · Water Quality & Supply · Stable Economy · Stable Interest Rates · Stable Revenue - Sales & Property Tax Collections · Adequate Debt Capacity · Increased Transportation Pressures · Increased Population · Annexation Issues · Increase in Capital Projects Costs · Potential Increase of E-commerce - Loss of Sales Tax Revenue · More Unfunded Mandates from State and Other Local Governments · Increased Labor Costs vs. Less Increase in Property Tax · Property Tax Limitations · More Prisoners in Custody · King County Jail Contract · Valley Comm Revised Contract · Increased Unemployment · Renewal of Union Contracts · Increased Human Services Needs · Increased Rent/Housing Costs · Tribal Economic Expansion/Revenue Diversion · Utility & Other Energy Cost Increases · Increased Transportation Pressures/Transit Center · Medical Premium Increase · 10-17% Reduction in Retirement Contributions · Initiative 747 VII Goals and Strategies - 2001 and 2002 The following Goals and Strategies were determined for 2002: · Retain and Preserve Community Identity · Community Gateways · Neighborhood Family Centers · Les Gove Community Complex · Neighborhoods in Transition · Streetscape Management · Revitalize Downtown · Crosswalks (WCIA) · Lighting · Complete Financial Section of the Downtown Plan · Implement Downtown Plan Special City Council Meeting Minutes July 24, 2001 Page t 1 · Economic Development · Remediate Areas of Blight · Review City Code and Enforcement Laws · Review Condemnation for Repeat Offenders · Develop an Economic Marketing Plan · Include Attracting Small Business Development · Healthy Environment for Youth · Expand Participation in Youth-Adult Activities, Services, and Opportunities · Establish a Citywide Youth Activities Calendar via Intemet · Resolve Transportation Issues · 3rd Street · Local Streets Preservation · 277t~ Corddor · Black Diamond Bypass and "M" Street Grade Separation · Technology · Continue Upgrading City Web Page · Continue Upgrading Business Systems · Council Chambers Upgrades/Maintenance · Plan for E-Gov · Miscellaneous Issues: · Endangered Species Act Impacts · Evaluate Crosswalk and Lighting Needs (WCIA) · Revenues and Potential Annexation Costs · Pursue Efforts to Ensure Adequate Water Supply to Accommodate Growth · Investigate Court Alternatives (Traffic Infractions) Director Engler requested further guidance with regard to Council goal prioritization to assist in the budgeting process. Councilmember Borden suggested that a prioritization process could take place at the Committee level. Councilmember Lewis commented that input from the Council with regard to goals would assist staff in developing budget strategies to present to the appropriate Committee. VIII. Adjournment There being no further discussion, the meeting adjourned at 7:24 PM. ' APPROVED THIS 7-~DAY OF ~ ,2001. 2001 rn07-24spedal.doc