City Passes GF Budget, Will Replace Fleets Aging Vehicles

Posted on: November 24, 2009 | musiclover | 1 Comment | Print Article | Rate Post:

(by Heidi Zemach for Seward City News)

The “bloodletting” known as the annual budget process has officially ended, and Monday night the Seward City Council approved a $9.8 million General Fund Budget for 2010, and $9.9 million for 2011, which retain the property tax rate at 3.12 mills. The council also passed a number of resolutions including the water, wastewater, Seward Marine Industrial Center, small boat harbor, parking, motor pool and electric enterprise funds. The GF budget for 2010 includes $2.8 million for government; $3.1 million for public safety; $1.5 million for public works: $1.1 million for parks and recreation, $399,000 for the library and $788,000 for the debt service.

Most ordinary folks, with the exception of Tim McDonald, stayed home– perhaps because they had already made known their views on the budget and fee increases. So now it was up to council members to try to make their imprint on the final decision.

After hearing a report on how bad the September financial reports were, with sales taxes down 15.16 percent over last year, and property tax revenues down $59,000, Councilwoman Vanta Shafer asked Phillip Oates if he was considering a hiring freeze of city employees.

“No, I don’t thank that’s necessary at this point,” Oates said. “We’re at the point that we can continue as we have been—we’ve cut our budget considerably.” With the $1.6 million in Exxon Oil Spill money that the city expects to receive, the city “will have robust reserves,” he said. “Next year, it’s anybody’s guess,” and cuts in employees and services may be needed.

Councilwoman Marianna Keil removed a number of resolutions from the consent agenda for discussion and amendments. First, was the Water Enterprise Fund Budget resolution. City personnel costs are too high, especially the increase of $74,000 over last year for hiring a project manager, Keil said. “I’m a little disappointed,” agreed Councilwoman Linda Amberg. “With the state of businesses now, I’d think we’d be looking at ways to reduce staffing, not how to create staff. We need to be looking at ways to contract out.” 

Oates said the city already contracts out many services—but he wants to have a smooth transition for Public Works Director W.C. Casey’s impending retirement. According to his plans, Kirsten Vesel, the current assistant city manager would become the new project manager/grant writer while training to become the Public Works Director. An office assistant in public works will be replaced by Vesel, who will have higher administrative responsibilities and salary. Vesel has master’s degrees in environmental engineering and public administration, and has worked for the oil industry in project management. Her position would be charged 35% to Water, 35% to Wastewater, 15% to the city shop and 15 % to the roads and streets departments. Upcoming large city infrastructure projects include relocating state and city shop facilities, a $3 million road project, lift station replacements and upgrades, and a new water storage tank.

“I’ve been stretched too thin,” Casey said, explaining he is too busy with the rest of his job to research and write grants that could bring in additional public works funding. “I’m telling you, I’m not getting the administrative stuff done.” Keil proposed an amendment to pay the project manager position wages from the general fund, rather than draw from each individual department’s enterprise fund, and thus increase deficit spending in those already depleted funds. Her amendment failed 6-1, and the original water enterprise fund budget passed. After the failure, Keil decided not to try to amend the Wastewater enterprise fund budget, which then passed unanimously.

Next was the Parking Enterprise fund 2010, 2011 budget, which included a return to $10 daily fees for harbor parking. The return to 2008 rates, lowered to $5.00 in 2009 due to the economy. Funding is needed however to cover costs such as $230,000 to patch, seal and stripe the north, middle and south harbor lots; $32,000 for two automated credit-card pay stations, plus $10,000 for gravel. Shafer amended the resolution to keep daily parking rates at their current $5 level in order to give visitors a break and make them feel welcome. It passed 5-2, with Mayor Willard Dunham and Councilman Robert Valdatta voting no. Dunham said an extra $5 “won’t make a hill of beans,” to tourists. “They’re paying hundreds of dollars to go out on a boat.” Valdatta said parking fees in Anchorage are generally much higher. The council agreed to revisit the parking issue for 2011.

Keil also took a stand against purchasing new city vehicles. She particularly objected to a resolution authorizing the city manager to select and purchase outright up to $286,000 worth of new and used vehicles and equipment in 2010, and $130,000 in 2011. The list of vehicles to be replaced included: 1999 Ford F-350 flatbed pickup truck, with above-average wear, and costly to maintain; a 1997 Sander in poor condition; a 1998 White Ford 2WD Truck, purchased used for $7000, with 71,000 miles on it; a 1999 Police Ford Crown Vic, with 98,000 miles, the oldest in the fleet, with high maintenance costs, and only getting 15 miles per gallon; an 8-year old Police Explorer in poor condition, with high repair costs and bad fuel economy; a 4WD truck, 24 years old, and in poor condition; and a CAT dozer, 21 years old—the city’s primary flood response dozer. That item would be replaced with a lease/purchase of a D6 CAT dozer for not more than $380,000.

Many of the motor pool items listed in a comprehensive study of replacement needs and schedules, were removed from the list, or postponed, and some may be replaced with used vehicles. Others were to be replaced for more fuel efficient vehicles, all resulting in extensive savings, according to the city, said Kristin Erchinger, the finance director. The vehicle purchasing resolution was approved 5-2 with Keil and Amber voting no.

Tim McDonald was the only member of the public to speak during the three-hour plus long meeting, during which he twice called for an end to SMIC, and once to the hired manager system of government. McDonald favors a strong-mayor system and suggests that the three top city boards appoint their own chairs, and have their own jurisdiction. It’s too easy for a volunteer council to make multi-million dollar mistakes —such as continuing to support Seward Ship’s Drydock, McDonald said. He stormed dramatically from the room as council members and Mayor Willard Dunham defended themselves, SMIC, and their system of government.

In other matters, the council
*awarded a certificate of appreciation to Mike Gillen, Project Manager for the Seward Long-Term Care Facility.
* announced that the Alaska Municipal League has selected the Seward Mountain Haven Long-Term Care Facility to

receive the “Just a Darn Good Idea” (Alaska Community) award, Dunham announced.
*authorized a small sign to honor 100-year-old Alaska Pioneer and longtime resident Patricia Williams, to be placed

under the spruce tree in Pat Williams Park for not more than $1,200.
*authorized city manager to enter into a new lease with Alaska Logistics, LLC at SMIC
*resolved to support home-porting the Alaska Region Research Vessel in Seward.

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