City Council

Mount Vernon City Council Regular Meeting Minutes November 22, 2016 The meeting was called to order by Mayor Boudreau at 6:03 p.m. Present: Mayor Boudreau, Councilmembers Fiedler, Hudson, Hulst, Lindquist, Molenaar, Quam and Ragan Staff Present: Finance Director Huschka, City Attorney Rogerson, Police Chief Dodd, Project Development Manager Donovan, Parks and Enrichment Services Director King, Community and Economic Development Director Hyde, Public Works Director Bell, Information Services Director Kleppe, Fire Chief Bryce, Human Resources Director Bartlett, Assistant Library Director Holahan, CED Engineering Manager Chesterfield, Senior Financial Analyst Weber, TV 10 Supervisor Kingslien, Recreation Supervisor Brookings, Operations Manager Weppler, CWP Supervisor Wenzl, Equipment Maintenance Manager Owens, Solid Waste Assistant Supervisor Hanson, Streets Manager Brickley, Wastewater Manager Duranceau, Assistant Public Works Director Love, Public Works Engineering Manager Chesterfield Citizens Present: 10 Approval of Minutes A. Approval of November 2, 2016 Study Session Meeting minutes. Councilmember Quam moved to approve the November 2, 2016 Study Session minutes. Motion seconded by Councilmember Hudson. Motion carried 7-0. B. Approval of November 9, 2016 Regular Council Meeting minutes. Councilmember Hudson moved to approve the November 9, 2016 Regular Council Meeting minutes. Motion seconded by Councilmember Hulst. Motion carried 7-0. Approval of Claims and Payroll A. Approval of November 22, 2016 claims numbered 147253 – 147497 in the amount of $994,440.47. Councilmember Fiedler moved to approve the November 22, 2016 claims numbered 147253 – 147497 in the amount of $994,440.47. Motion seconded by Councilmember Molenaar Motion carried 7-0. B. Approval of November 15, 2016 payroll checks numbered 106245 – 106292, direct deposit checks numbered 58276 – 58474, and wire transfers numbered 591 & 592 in the amount of $780,465.69. Councilmember Ragan moved to approve the November 15, 2016 payroll checks numbered 106245 – 106292, direct deposit checks numbered 58276 – 58474, and wire transfers numbered 591 & 592 in the amount of $780,465.69. Motion seconded by Councilmember Lindquist. Motion carried 7-0. Mount Vernon City Council November 22, 2016 Page 2 of 5 REPORTS A. Committee Reports: • None B. Community Comments: • Joan Penney, Mount Vernon resident, spoke about area homelessness and the housing element of the Comprehensive Plan. She feels that no action has taken place since the approval of the document. Mayor Boudreau and Mr. Hyde will meet with her to review what has been achieved to date. C. Councilmember Comments: • Councilmember Hudson thanked the Parks Department for the Veterans Day program. D. Mayor’s Report • Mayor Boudreau reviewed the subject of zoning for adult entertainment businesses within the City and the changes that were recently implemented including two interim ordinances. She invited the public to attend a Public Hearing on December 7, 2016. • Mayor Boudreau spoke about local government including processes, budget and services. th • The next Mayor’s coffee hour is 10:00 am December 7 at St. Paul’s Episcopal Church. E. Committee Agenda request: • Councilmember Fiedler requested a synopsis of the meeting with Ms. Penney at an early December meeting. UNFINISHED BUSINESS None NEW BUSINESS A. Street Closure Request – Christmas Parade and Tree Lighting: Mr. Donovan presented a request st on behalf of the Mount Vernon Downtown Association to close 1 Street from Division to Kincaid, Cleveland Avenue from Kincaid to the north side of Milwaukee and all connecting side streets nd from Main Street to 2 Street from 3:30 pm to approximately 6:30 pm on Sunday, December 4, st 2016 with parking on South 1 and side streets to be closed at 1:30 pm for the Christmas Parade and Tree Lighting Ceremony. Councilmember Molenaar moved to approve the street closure request as stated above. Motion seconded by Councilmember Ragan. Motion carried 7-0. B. Agreement for Public-Private Development Consultant: Mr. Hyde asked Council to authorize the Mayor to enter into a two year agreement with Collins Woerman/THG of Seattle for Public-Private Development consultant services. The planning, meeting and presentation schedule was briefly outlined. Councilmember Hulst moved to authorize the Mayor to enter into an agreement with Collins Woerman/THG for Public- Private Development consultant services in an amount not to exceed $75,000.00 annually. Motion seconded by Councilmember Quam. Motion carried 7-0. Mount Vernon City Council November 22, 2016 Page 3 of 5 C. Set 2017 Property Taxes: Ms. Huschka presented an ordinance setting the 2017 Property Tax for the City of Mount Vernon which includes a 0.953% increase in property taxes (limited to the implicit price deflator) and a second ordinance declaring “substantial need” which allows the City to bank the full 1% increase in property taxes. Revenues, fund balance, fund reserve levels established in the City’s fiscal policies were reviewed. The proposed budget does not include a 1% property tax increase and Council made clear they do not want to take the 1% increase but rather want to bank it for possible use in future years. Ms. Huschka clarified that the ordinances need to be approved with language that states the City is taking the 1% lawfully allowed increase but this will be made clear to the County Assessors Office that the City is banking and not taking the 1% increase in property taxes for 2017. Councilmember Lindquist moved to approve Ordinance 3700 setting the 2017 property tax with an increase of 0.953% which will be banked. Motion seconded by Councilmember Fiedler. Motion carried 7-0. Councilmember Ragan moved to approve Ordinance 3701 stating substantial need for the City allowing for the full 1% property tax levy increase and allowing the 1% property tax increase for 2017 to be banked. Motion seconded by Councilmember Molenaar. Motion carried 7-0. D. Amendment to the Utility Tax on Sewer Services : Ms. Huschka presented a request for adoption of an ordinance to eliminate the provision in MVMC 5.48.050 that changes the utility tax rate on sewer services from 8.5% to 7.0% on January 1, 2017. In 2016 Council passed an ordinance to increase the utility tax on sewer services with the tax reverting back to 7% effective January 1, 2017. The revenue is used in support of government operations and the tax rate of 8.5% is assumed in the preliminary budget. Councilmember Fiedler moved to approve Ordinance 3702 eliminating the provision in MVMC 5.48.050 that changes the utility tax rate on January 1, 2017. Motion seconded by Councilmember Quam. Motion carried 7-0. E. Public Hearing to Consider Adoption of the 2017 City Budget: Mayor Boudreau recapped the budget process that begins with budget call in July. Each department works to determine needs and goals followed by detailed comprehensive discussions between the Mayor, Finance Director and each department Director. A balanced preliminary budget is then presented to Council. The $55.2 million budget is a 3.2% increase over 2016 and uses $576,553 fund balance in the General Fund. The budget follows adopted strategic goals and financial policies. Mayor Boudreau reviewed infrastructure and healthy neighborhood projects as well as economic development plans, workforce costs, vehicle and equipment purchases and urban forestry work. There are five new FTE positions funded by specific revenues and the restructuring of two positions. Deferred needs, service levels and staffing and decision making criteria were outlined Ms. Huschka discussed the four categories of the budget: government operations, capital funds, utilities and miscellaneous that includes Equipment Rental, Debt Service and other special funds. Ms. Huschka presented and reviewed a 10-year budget history as well as the increases to the 2017 budget. Transportation Benefit District revenue was briefly reviewed. Personnel costs, staffing levels, governmental operating funds and equipment rental and reserves were discussed. Fund balances and reserves were presented. Mayor Boudreau opened the public hearing. There being no comments Mayor Boudreau closed the public hearing. Mount Vernon City Council November 22, 2016 Page 4 of 5 • Councilmember Ragan spoke about the Mayor’s budget letter and asked for clarification regarding the level of City services during the recession with declining staffing levels. Mayor Boudreau explained that services such as building permit reviews and fire inspections have not been completed as quickly as when offices were fully staffed. She added that the citizens often did not see some of the delays in certain services due to staff picking up the pace and struggling to maintain those services. • Councilmember Fiedler commented that with the passing of Proposition 1, Transportation Benefit District, he wants to be sure that those revenues are not used to balance future budgets. • Councilmember Quam addressed the need for a new bucket truck and recommends purchasing a new vehicle rather than a used one. • Councilmember Ragan questioned the need for two reader boards. Mr. Bell explained that one is portable and the other is truck mounted. Both are needed for traffic control, emergencies and other informational uses. • Councilmember Ragan addressed the proposed salary increase for the Mayor; he feels a 5% increase to too much and should not be effective until a new term begins. Mayor Boudreau stated that the Mayor’s salary has not been adjusted since 2009 and that it has been recommended that a pay matrix should be established. Ms. Huschka explained salaries are approved by Council and that is why changes in Council compensation don’t take place until the next term. She suggests that Council appprove the salary adjustment as presented and develop the pay matrix for the Mayor position during 2017 to be effective in 2018. • Councilmember Ragan inquired about the security changes at City Hall. Mr. Hyde explained that the changes are recommended by the Police Department for the security of staff. They will include a waiting area and screening upstairs and safety glass downstairs. Councilmember Hudson moved to adopt Ordinance 3703 approving the 2017 City Budget as presented. Motion seconded by Councilmember Hulst. Motion carried 7-0. F. Ordinance to Set Rate of Pay for City Councilmembers: Ms. Huschka presented an ordinance setting the annual rate of pay for City Councilmembers at $14,400.00. The last increase was in 2000 and there is no budgetary impact to the 2017 budget. The first change would be in 2018 when four of the seven councilmember positions will go through an election process in November 2017. Councilmember Fiedler moved to adopt Ordinance 3704 establishing annual compensation for City Councilmembers. Motion seconded by Councilmember Hudson. Motion carried 7-0. There being no further business the meeting was adjourned at 7:40 p.m. Mount Vernon City Council November 22, 2016 Page 5 of 5 SUBMITTED BY: ______________________________________________ Becky Jensen, Recording Secretary ATTEST: ______________________________________________ Alicia D. Huschka, Finance Director APPROVE: ______________________________________________ Jill Boudreau, Mayor