Loading...
11-24-15 MinutesYELM CITY COUNCIL REGULAR MEETING TUESDAY, NOVEMBER 24, 2015 MINUTES Mayor Harding administered the Oath of Office to Tad Stillwell for Yelm City Council Position 4 replacing Jennifer Littlefield. 1. Mayor Harding called the meeting to order at 6:00 pm. 2. Roll Call Present: JW Foster, Joe Baker, Tad Stillwell, Tracey Wood, Ken Garmann and Russ Hendrickson. 15-096 MOTION BY TRACEY WOOD EXCUSING COUNCILMEMBER BOB ISOM FROM THE MEETING. CARRIED. Agenda Approval 15-097 MOTION BY RUSS HENDRICKSON APPROVING THE AGENDA AS PRESENTED. CARRIED. 4. Special Presentations - none scheduled 5. Public Comment - Steve Klein, Thurston County resident thanked all outgoing and current Councilmembers for their public service and welcomed new Councilmembers to be sworn in at the first meeting January. 6. Consent Agenda Minutes - Regular Meeting November 10, 2015 Payables - Checks #65731 - #65822 Totaling $671,797.01. 15-098 MOTION BY TRACEY WOOD APPROVING THE CONSENT AGENDA AS PRESENTED. CARRIED. 7. Public Hearings - a. Ad Valorem Tax Rate Budget Year 2016 Mayor Harding opened the Public Hearing at 6:08 pm. City of Yelm Finance Director Noah Crocker presented the staff report. Mayor Harding closed the Public Hearing at 6:11 pm. b. 2016 Preliminary Budget Mayor Harding opened the Public Hearing at 6:12 pm. Noah Crocker gave a power point presentation of each fund. Public Hearing continued to the December 8, 2015 meeting. 8. New Business - a. Ordinance No. 1006, Setting Ad Valorem Tax for 2016 (7.a.) Noah Crocker, Finance Director explained the phrase ad valorem is Latin for "according to value". In the case of municipal property taxes, property owners have their property assessed on a periodic basis by a public tax assessor. The assessed value of the property is then used to compute an annual tax, which is levied on the owner by his or her municipality. The legislative body holds a public hearing and discusses any increases in property tax revenues that are being considered. An Ordinance is adopted by both the dollar and percentage increase amounts and certified with the county by a November 30 deadline. Cities with a population off less than 10,000 can increase their levy amount by one percent 11/24/15 without a vote (highest lawful levy calculation). Normally, taxes on new construction are exempt from the lid/limit factor and may be added to the tax levy that is being requested only if the statutory maximum levy rate times the assessed value of the city exceeds the highest lawful maximum. The assessed valuation of the City increased approximately $2,968,302 over the previous year, therefore increasing the factor in the formula. The new levy rate will be $21.70911 per $1,000 of assessed valuation. This levy rate includes a councilmanic reduction of 1% to City of Yelm property owners. Mayor Harding added that this is the fifth year that the Council has chosen to reduce the levy rate by 1%. If Ordinance No. 1006 passes tonight, Noah will file with Thurston County in the morning before the November 30, 2015 deadline. 15-099 MOTION BY 7W FOSTER ADOPTING ORDINANCE NO. 1006, SETTING THE AMOUNT FIXED AS AD VALOREM FOR THE REGULAR LEVY OF PROPERTY TAX NECESSARY TO RAISE REVENUES FOR ESSENTIAL EXPENDITURES FOR THE CITY OF YELM FOR THE FISCAL YEAR 2016. CARRIED. b. Ordinance No. 1008, 2016 Preliminary Budget (7.b.) Noah Crocker, Finance Director gave an overview of the preliminary budget. The 6.633 million dollar general budget reflects a conservative approach to revenue projections (5.076 million), as well as a thorough analysis of planned expenditures. It maintains current programs, contracts and levels of service provided to the community. Some of the highlights of the 2016 Budget include: SW Yelm Well 1A -construction of water treatment system, booster station, well house, and reservoir; water rights mitigation projects associated with Deschutes River Farm; AC water line replacement projects; Cochrane Park wetland rehabilitation; Sewer Capital Facilities Plan, and the Water Comprehensive Plan Update. There was no public comment. 15-100 MOTION BY TRACEY WOOD TO CONTINUE THE PUBLIC HEARING TO THE DECEMBER 8, 2015 CITY COUNCIL MEETING. AT THIS MEETING, ADDITIONAL PUBLIC COMMENT WILL BE HEARD AND THE BUDGET WILL BE SCHEDULED FOR ADOPTION. CARRIED. c. Resolution No. 562, Interfund Loan 001 to 316 Roads/Streets Noah Crocker, Finance Director explained the following grant revenues were budgeted during the 2015 year- Mosman Avenue Improvements project ($184,000), Cullens/Solberg Sidewalk Project (163,000) for a total grant funding of $347,000. Transportation Improvement Board (TIB) grant proceeds were awarded to fund the design and construction of the Mosman Avenue Improvements Project and the Cullens/Solberg Sidewalk project with the construction portion of each project occurring in 2015. $97,418 in grant revenues are anticipated to be received for the Mosman Avenue Improvement Project and $174,000 for the Cullens/Solberg Sidewalk Project for a total of $271,418. Due to the nature of reimbursement grants, the City of Yelm has not yet received the full reimbursement from TIB. Year to date a total of $26,417 has been received from the Mosman Avenue Improvement TIB grant and nothing for the Cullens/Solberg Sidewalk TIB grant. Additional interim funding is needed to cover costs associated with the Mosman Avenue Improvements and Cullens/Solberg Sidewalk projects paid for out of Fund 316. This funding is needed only until the grant monies are received. An Interfund Loan in the amount of $245,000 is necessary to provide cash to Fund 316 to close out the projects and end the 2015 calendar year in a positive cash position. We anticipate receiving the grant funding in early 2016. We expect to receive $71,000 in remaining grant proceeds for the Mosman Avenue Improvements Project and $174,000 for the Cullens/Solberg Sidewalk 11/24/15 Project. Once the grants are received, Fund 316 will repay the Interfund loan to the General Fund 001 as defined by Resolution No. 562. 15-101 MOTION BY TRACEY WOOD APPROVING RESOLUTION NO. 562 ESTABLISHING AN INTERFUND LOAN BETWEEN THE GENERAL FUNDS 001 TO THE ROADS/STREET CONSTRUCTION FUND 316. CARRIED. d. Resolution No. 563, Interfund Loan 401 to 400 Stormwater Utility Noah Crocker, Finance Director stated the following Department of Ecology (DOE) funds were budgeted in 2015 - DOE Grant ($75,000) and DOE Loan ($25,000) for a total of $100,000. The DOE grant proceeds were awarded to fund the Stormwater Comprehensive plan during 2015. During 2015, The Stormwater Comprehensive Plan was budgeted at a cost of $118,750. By the end of 2015, $50,000 is projected to have been spent. There is a timing issue for the reimbursement based grants so additional interim funding is needed to cover costs associated with the Stormwater Comprehensive Plan for Fund 400 until the grant and loan monies are received. It has been determined that $25,000 is necessary to provide cash to Fund 400 to end the 2015 calendar year in a positive cash position. We anticipate receiving the grant reimbursement and loan proceeds in early 2016. Once the monies are received, Fund 400 will repay the Interfund loan to the Water Utility Fund 401 plus interest as defined in Resolution No. 563. Councilmember Wood asked if we were charging, ourselves interest on the money. Noah stated that interest must be paid on the transfer according to state law but it would not amount to much since the money will be borrowed for short term. 15-102 MOTION BY TRACEY WOOD APPROVING RESOLUTION NO. 563, ESTABLISHING AN INTERFUND LOAN BETWEEN THE WATER UTILITY FUND 401 AND THE STORMWATER UTILITY FUND 400. CARRIED. e. Ordinance No. 1007, 2015 Year -End Budget Amendment Noah Crocker, Finance Director stated that variations in both revenue and expenditure appropriations occurs throughout the budget year, creating the need for amendments. The City of Yelm adopts the annual budget by department level for the Current/General Fund and by fund level for all other funds. It is important to note that many revenues line items (and ending cash) are anticipated to end the year well above the original budgeted amounts, this amendment addresses expenditures only except where there are transfers or Interfund loans in to balance the fund. Expense appropriations are amended to the extent needed to rebalance' the department/fund. This 2015 Amendment in total is $2,362,726.36. Appropriation changes include adjustments to balance the departments/funds. The Amendment total would not have been so large if an Amendment had been done mid -year as it had been done in the past. There has been a change in staff and so it was not done this year. Noah Crocker went over some of the funds that had the largest changes from one year to the next. The net effect to ending cash was 691,058.36 but the majority of this total was due to Interfund transfers, which will be paid back in 2016. 15-103 MOTION BY TRACEY WOOD ADOPTING ORDINANCE NO. 1007, AMENDING THE 2015 BUDGET BY APPROPRIATING FUNDS FOR 2015 CONTRACT OBLIGIATIONS, TRANSFERS, AND OTHER EXPENDITURE RELATED BUDGET AD3USTMENTS. CARRIED. 11/24/15 f. Release of Retainage to Nova Construction, Mosman Improvement Project Ryan Johnstone, Public Works Director stated that on November 18, 2011, the City of Yelm was notified from the Transportation Improvement Board (TIB) of its successful application for grant funds in the amount of $990,501. This was to complete the realignment of the intersection of Mosman Avenue with SR507 and roadway improvements between 2nd St. SE and SW Railroad St. Design of the project was awarded to Gray and Osborne for a total cost of $231,572 and was completed in March 2014. The project construction was awarded to Nova Contracting, Inc. on May 13, 2014 City Council meeting. The contract award was in the amount of $1,492,125.13. Final construction cost was $1,477,515.12. Staff recommends acceptance of the project and release of the project Retainage bond to Nova Contracting, Inc. once all proper documentation has been received from the Department of Revenue, Labor and Industries, and Employment Services and there are no liens against the project. Councilmember Wood stated it was unfortunate that the project took so long but it is beautiful. Mayor Harding stated it was a lengthy project because it is a State Highway and the City went back and forth with the State on different aspects of the project. Ryan Johnstone stated the amount had been reduced by about $34,500 in negotiations with Nova Contracting, Inc. due to the project being completed late. 15-104 MOTION BY TRACEY WOOD TO ACCEPT AND AUTHORIZE THE RELEASE OF THE RETAINAGE BOND IN THE AMOUNT OF $74,014.70 TO NOVA CONTRACTING, INC. FOR CONSTRUCTION ACTIVITIES RELATED TO THE CITY'S MOSMAN AVE IMPROVEMENTS PROJECT. CARRIED. g. TIB Supplement with Gray & Osborne, Additional Construction Management Services, Mosman Improvement Project Ryan Johnstone, Public Works Director reported that the Mosman Avenue Improvements Project was advertised and awarded to Nova Contracting, Inc. at the May 13, 2014 City Council meeting. Additionally, Gray & Osborne was awarded a contract for construction management services for the project in the amount of $191,123. Supplement #5 is for additional services performed by Gray and Osborne due to the project exceeding the contract time. During this time additional coordination with the various project stakeholders, plan review, and general project management tasks were required. The extra time and effort incurred by Gray & Osborne is reflected in the attached supplement in the amount of $13,292 and would be paid out of fund 316. 15-105 MOTION BY TRACEY WOOD AUTHORIZING MAYOR HARDING TO SIGN TIB SUPPLEMENT #5 WITH GRAY & OSBORNE, INC. IN THE AMOUNT OF $13,292 FOR ADDITIONAL CONSTRUCTION MANAGEMENT SERVICES RELATED TO THE MOSMAN AVENUE IMPROVEMENTS PROJECT. CARRIED. h. Release of Retainage to Iversen & Sons, Yelm Avenue Sidewalk Project Ryan Johnstone, Public Works Director reported that on November 25, 2013, City staff received notification from the Transportation Improvement Board (TIB) of its successful application for sidewalk replacement money in the amount of $184,184. The project was located at Yelm Ave. W. between Cullens St. NW and Solberg St. NW and included the construction of 820 feet of concrete curb, gutter, and sidewalk. In January 2014, the design of the project was awarded to Gray & Osborne and was completed in April 2015. Total design fee was $59,969. The sidewalk project was advertised for construction in April 2015 and was awarded to Iversen and Sons, Inc. on May 26, 2015 at the City Council meeting. The contract award was $200,185.00 and the project was completed on October 11/24/15 9, 2015. The final construction cost was $200,212.00. Staff recommends acceptance of the project and release of the project retainage to Iversen and Sons, Inc. once all proper documentation has been received from the Department of Revenue, Labor and Industries, and Employment Services. 15-106 MOTION BY TRACEY WOOD TO AUTHORIZE RELEASE OF RETAINAGE IN THE AMOUNT OF $10,010.62 TO IVERSEN AND SONS, INC. FOR CONSTRUCTION ACTIVITIES RELATED TO THE CITY'S YELM AVENUE SIDEWALK IMPROVEMENTS PROJECT. CARRIED. 9. Old Business -none scheduled 10. Mayor and Council Initiatives Councilmember Foster attended the Thurston County Solid Waste Advisory Committee meeting where they discussed the Talking Trash updates from the survey. 158,000 tons of garbage is trucked 240 miles away which becomes very expensive. They are trying to come up with an alternative plan to reduce the amount of garbage in the landfills. It is estimated that 17% of the 158,000 tons is actual food or food products. Councilmember Foster also attended the Nisqually River Council meeting and the Medic One meeting on behalf of Councilmember Hendrickson. Councilmember Baker attended the Intercity Transit Board meeting and reported they will be appointing interested people to the Citizens Advisory Committee. Councilmember Stillwell stated he had spent several hours with Mayor Harding today to see what projects were happening and looks forward to spending time as a Councilmember in the future. Councilmember Garmann attended the Thurston County Law and Justice meeting. Councilmember Garmann had received a rather large water bill from the City so he replaced a part in his leaky toilet and his consumption was greatly reduced. Councilmember Hendrickson thanked Councilmember Foster for attending the Medic One meeting on his behalf. Mayor Harding attended the Thurston County Economic Development Council where they modified the Strategic Plan. Mayor Harding has served as a board member on the EDC for 11 years. The EDC has administered 50 million dollars in contracts over the past 15 years. Mayor Harding spent the afternoon bringing Tad Stillwell up to speed on the different projects happening in the City. 11. Executive Session - none scheduled 12. Correspondence included - Nisqually Land Trust Newsletter, Winter 2015 Early Learning Celebration Friday, November 20, 2015 10am-12 Lacey Community Center Thurston Regional Planning Council, Pre -Agenda Friday, December 4, 2015 8:30- 11am 11/24/15 Councilmember Foster stated he was happy with the Military Banner Project and thought the banners looked great. Mayor Harding stated a few more banners applications had been received so there would be more going up in the future. Mayor Harding also announced the City of Yelm had received a TIB Grant for sidewalks along Mosman Avenue to Washington Street on both sides. 13. Adjourned at 7:05 pm. it Ron Har in , May 11/24/15 Attest: Ae IAAL2121� Lori Mossman, Deputy City Clerk