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HomeMy WebLinkAbout2014.02.10 Council Workshop PacketAGENDA PASCO CITY COUNCIL Workshop Meeting 7:00 p.m. February 10, 2014 1. CALL TO ORDER 2. ROLL CALL: (a) Pledge of Allegiance. 3. VERBAL REPORTS FROM COUNCILMEMBERS: 4. ITEMS FOR DISCUSSION: (a) Tri- Cities Regional Public Facilities District Presentation. (NO WRITTEN MATERIAL ON AGENDA). Presented by Steve Young, Vice President, Tri- Cities Regional Public Facilities District Board. (b) Recovery of Abatement Costs for 114 N. 4`s Avenue (MY #LIEN2014 -004): 1. Agenda Report from Rick White, Community & Economic Development Director dated February 4, 2014. 2. Vicinity Map. 3. Proposed Resolution. 4. Notice of Summary Abatement. 5. Demolition Costs. (c) Sidewalk Repair and Replacement Presentation. (NO WRITTEN MATERIAL ON AGENDA). Presented by Ahmad Qayoumi, Public Works Director. (d) Water Rights Fee in Urban Growth Area: 1. Agenda Report from Gary Crutchfield, City Manager dated February 7, 2014. 2. Proposed Ordinance. (e) Management Compensation Program: 1. Agenda Report from Gary Crutchfield, City Manager dated February 7, 2014. 2. Memorandum to City Manager from Deputy City Manager dated 2/7/14. 5. OTHER ITEMS FOR DISCUSSION: (a) (b) (c) 6. EXECUTIVE SESSION: (a) (b) (c) 7. ADJOURNMENT REMINDERS: 11:45 a.m., Monday, February 10, Pasco Red Lion — Pasco Chamber of Commerce Membership Luncheon. (Presenter: Richard Cummins, President, Columbia Basin College) 2. 7:00 a.m., Thursday, February 13 — BFCG Tri-Mats Policy Advisory Committee Meeting. (COUNCILMEMBER BOB HOFFMANN, Rep.; REBECCA FRANCIK, Alt.) 3. 7:00 p.m., Thursday, February 13 — Ben - Franklin Transit Board Meeting. (MAYOR MATT WATKINS, Rep.; MIKE GARRISON, Alt.) AGENDA REPORT FOR: City Counci February 4, 2014 TO: Gary Crutc i i Manager Workshop Mtg.: 2/10/14 FROM: Rick White, Regular Mtg.: 2/18/14 `. `! ' Community & conomic Development Director ZY SUBJECT: Recovery of Abatement Costs for 114 N 01 Avenue (MF# LIEN 2014 004) I. REFERENCE(S): 1. Vicinity Map 2. Proposed Resolution 3. Notice of Summary Abatement 4. Demolition Costs H. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 2/10: DISCUSSION 2/18: MOTION: I move to approve Resolution No. , setting 7:00 p.m., Monday, March 17, 2014 as the time and date to conduct a public hearing to consider objections to the assignment of abatement costs as a tax lien at 114 N. 4th Avenue. III. FISCAL IMPACT: $29,224.30 Abatement Fund IV. HISTORY AND FACTS BRIEF: A. On August 13, 2013, the old Liberty Theater located at 114 North 4th Avenue was destroyed by fire, leaving elevated portions of the structure in danger of collapse and without ground support adjacent to City utilities, sidewalks and the street. B. The City declared the premises unsafe and initiated action to immediately mitigate the dangerous and unsafe conditions, as provided in Pasco Municipal Code Section 11.02.070 (2) Summary Abatement. C. As a result, the City, through the application of the Summary Abatement procedure, hired a contractor to remove the elevated unsafe portions of the building and make repairs to the adjacent portions of the utilities, sidewalk and street to make them safe and passable. D. The City incurred a cost of $29,224.30 for the abatement of the damaged and dangerous structure and reinforcement of the adjacent street, sidewalk and utilities. DISCUSSION: A. Following the conduct of a hearing, a review of the attached report and acceptance of any objections or protests, Council has the option of recovering abatement costs by assessing the charges against the property or making said charges a personal obligation of the property owner. B. The property has an existing lien filed by the City in 2013 for recovery of the abatement costs. C. Using this process for Summary Abatement allows the City to place a tax lien on the property, making the abatement costs due and payable at the same time as the annual property taxes. D. This method is a more certain way to guarantee the reimbursement to the Abatement Fund as it places the City's lien in the same position as unpaid taxes. It also allows foreclosure upon the property if taxes are delinquent. E. The proposed resolution will set March 17, 2014 as the date for the required public hearing through the Summary Abatement procedure. 4(b) , c � ' w T^ 3 k� O ct ct O O O �. ct . t��� - 4 POO RESOLUTION NO. A RESOLUTION FIXING THE TIME AND DATE FOR A PUBLIC HEARING TO CONSIDER OBJECTIONS FOR THE RECOVERY OF ABATEMENT COSTS AT 114 NORTH 4TH AVENUE. WHEREAS, from time to time in order to secure the welfare and safety of the public the City is compelled to demolish and remove unsafe and dangerous structures; and WHEREAS, the building at 114 N. 4th Avenue was destroyed by fire on August 13, 2013 and the City was required to immediately mitigate the unsafe portions of the building and reinforce the adjacent street, sidewalks and utilities; and WHEREAS, in order to recover the costs associated with the demolition and removal of said unsafe and dangerous structures, in compliance with Section 902 of the Uniform Code For The Abatement of Dangerous Buildings, the legislative body of the City is required to conduct a public hearing, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO: That a public hearing to consider objections or protests and review a report of abatement costs incurred in the demolition and removal of the unsafe structure at 114 North 4`' Avenue will be held before the City Council of the City of Pasco in the Council Chambers of the City Hall, 525 North 3rd Avenue, Pasco, Washington, at the hour of 7:00 p.m. on the 17`h day of March, 2014. That the City Clerk of the City of Pasco give notice of said public hearing as required by law. Passed by the City Council of the City of Pasco this 18`h day of February, 2014. Matt Watkins Mayor ATTEST: Debra L. Clark, CMC City Clerk APPROVED AS TO FORM: Leland B. Kerr City Attorney h 1� COMMUNITY DEVELOPMENT DEPARtM FNT (509) 53441 /Scan 726. 441 /Fax 150915453499 P.O. Box 293, 525 North Third Avenue, Pasco, Washh gtoo 99301 NOTICE OF SUMMARY ABATEMENT Name: Octavio Rodriguez Violation No. CEB2013 -2939 Street: 1399 BELMONT BLVD City: WEST RICHLAND, WA 99353 Date: September 9. 2013 Location of Violation: 114 N 4& Avenue, Pasco WA Subdivision (s): GerWs Addition Block 14, Lot 3 (Tax Parcel No.112042030) Date of Violation: Auxust 14, 2013 Please be advised that, pursuant to Section 11.02.070 (2) of the Pasco Municipal Code, there exist condition(s) on the above noted property requiring summary abatement by the City of Pasco, due to an imminent threat to public health, safety or welfare or the environment. The conditions requiring immediate abatement by the City of Pasco are: Description of Conditions(s) Requiring Summary Abatement by The City: I. Unsafe and dangerous fire damaged structure and portions thereof. Summary Abatement Action(s) Required: 1. Partial demolition of the structure to remove weakened walls and roof system in danger of collapse, and mitigate hazards to adjacent buildings and public ways. All expenditures incurred by the City of Pasco by completion of the summary abatement action(s) are to be paid within ten (10) days of your receipt of the bill therefore. An invoice in the amount of $29.224.30, payable to the City of Pasco, and copy of the an itemized invoice from the abatement contractor hired by the City, have been included herewith for your review. Please present or include the City of Pasco invoice with your payment. If the full amount of the invoice is not paid as required, a lien for the same amount will be placed against the property to insure payment, and the City will request a lien for assessment of the full amount owed to the Franklin County Assessor's 2014 property tax for the tax parcel referenced above. In addition, the entire debt may be referred to a collection agency without further notice. HEARING NOTICE: On October 3. 2013 at 7:00 P.m., the Code Enforcement Board will hold a compliance hearing in the City Council Chambers, la Floor, Pasco City Hall, 525 North Third Avenue. Except for repeat violation(s), i.e., a repeat violation of a similar Pasco Municipal Code(s), H You have comolled With the Pasco Municipal 2. 2013 the hearing will be canceled and no monetary penalty will be assessed. If you choose NOT to complete the required corrective action by that time, the hearing will continue as scheduled. However, for repeat violations a minimum of $200.00 up to $500.00 penalty will be imposed upon the violator regardless of when required corrective action is completed. CODE ENFORCEMENT BOARD HEARING: At the hearing, the City will request that the Board issue a finding of violation and issue an order assessing you monetary penalties in the amounts below. % ISSUING PARTY: Phone: (509) 545 -3441 Inspection Services Manager Xc. Rick White, Director, Community &Economic Development Bob Gear, Pasco Fire Chief Tarot Hewitt, Accounts Receivable ATTACHMENT - A REPORT OF DEMOLITION COSTS 114 N 4th Avenue Introduction A fire erupted at the old Liberty Theater late in the evening of on August 13, 2013, destroying the majority of the framed roof and walls and floors. To safely complete the fire - fighting effort it was necessary to immediately remove the unsafe and unstable portions of the elevated frame roof and walls that were in imminent danger of collapse, endangering adjacent buildings and businesses. To accomplish the highly technical challenge of removing portions of the building - elevated over 30 feet above the street- a contractor with a crane was necessary. The City hired Ray Poland & Sons who were readily available and capable of performing the necessary abatement work. Ray Poland and Sons employed and directed a crane and crew from Lampson International, LLC to remove the elevated portions of the fire destroyed structure, and then made necessary repairs to water damaged City utility work and repairs to the adjacent sidewalk and street to make them passable, as provided in Pasco Municipal Code Section 11.02.070 (2). The information contained within this report is provided to fulfill the reporting requirements of Section 902 of the Uniform Code for the Abatement of Dangerous Buildings. Location of Unsafe /Fire Destroved Building Abated Address: 114 North 4th Avenue, Pasco, WA - Tax Parcel No. 112042030 Legal Description: S 50' LOTS 1 & 2, BLOCK 14, 8v S 50' 5"X 100' IN SW COR OF N 90' LOT 3 & S 60' LOT 4, BLOCK 14, GERRY'S ADD Record Owner Octavio Rodrigues 1399 Belmont Blvd. West Richland, WA 99353 Abatement Activity and Costs Contractors Summary Abatement Work Fee: $29,224.39 TOTAL COST FOR ABATEMENT: $29,224.30 City of Pasco Code Enforcement PO Box 293 PASCO. WA 99301 (509) 544-3066 RODRIGUEZ, OCTAVIO 1399 BELMONT BLVD WEST RICHLAND, WA 99363 -7954 DESCRIPTION OF CHARGE¢ Lien Abatement- Code Enforcem Account Number 35058 Violation Number L13.2939 Date 09/052013 CODE ENFORCEMENT NOTATION NUMBER: CEa20132939 PROPERTY ADDRESS 114 N 4TH AVE, PASCO, WA 993111 QUANTITY UNIT PRICE AMOUNIT 1.0 29224.30 29224.30 Total Charges 2822A.30 Total Credits 0.00 PLEASE PAY THIS AMOUNT -> $29224,30 ADETACH ALONG ABOVE LINE AND RETURN STUB WITH YOUR PAYMENT- Amount Due: $29224.30 RODRIGUEZ. OCTAVIO Violation Number L13 -2939 Amount Account Number. 35086 Current Date: 09/0612013 Enclosed $ This Invoice is for a Code Enforcement Violation for an abatement penalty. H this balance is not paid within 30 days, a lien will be placed on the property and it will be turned over to the Franklin County Treasurer to be Included on the property taxes.N a Ilan is filed, an additional charge for $144.00 will be added to this abatement penalty for the lien filing fee. To make payment arrangements please call (509) $44 -3066. City of Pasco Code Enforcement PO Box 293 PASCO, WA99301 P.O. BOX 6772 503 W COLUMBIA DRIVE KENNEWICK, WA 99336 GENERAL CONTRACTOR RAYROS243JE INVOICE W W W.RPSINCGC.COM 15091 506-21 58 FAX: 15091 585-0244 City of Pasco 525 N Third Ave 8!29/2013 Pasco, WA 99301 INVOICE Attn: Mitch Nickolds W-7379 -13 509- 544 -6311 Re: For the removal of upper falling structures to make save for fire. The extra work needed for clean -up and repair putting out remaining to damage around building. Trk/F. Description QTY Unit Amount Total 811412073 Bryan K Prj Manager 6 hrs $ 65.00 $ 390m 2 Pick -up 6 hrs $ 20.00 $ 120.00 Jason L Crane Foreman 5.5 hrs $ 86.00 $ 473.00 4 OT hr $ 129.00 $ 516.00 30 1 -ton work Irk 9.5 hrs $ 30.00 $ 285.00 Mike J Op / Form 301 JD 624 Loader 3 hrs $ 115.00 $ 345.00 4 OT hr $ 145.50 $ 582.00 7 1 -ton work irk 7 hrs $ 30.00 $ 210.00 Patrick J Operator 211 Hitachi 35 mini excavator 3 hrs $ 90.00 $ 270.00 Tyler G Labor 4 OT hr $ 120.50 $ 482,00 3 hrs $ 51.00 $ 153.00 Darren C Trk Driver 117 Peterbilt w /sldedump 4 3 OT hr $ hrs 81.50 $ 326.00 $ 145.00 $ 435.00 811 512013 4 OT hr $ 175.50 $ 702.00 Jason L Crane Foreman 3 hrs $ 86.00 $ 258.00 Mike J Op / Form 301 JD 624 Loader 3.5 hrs $ 115.00 $ 402.50 7 1 -ton work Irk 15 hrs $ 30.00 $ 105.00 Patrick J Operator 211 Hitachi 35 mini excavator 4.5 hrs $ 90.00 $ 405.00 Tyler G Labor 4.5 hrs $ 51.00 $ 229.50 Mike J Op / Form 103 Wt Trk 1 hrs $ 110.00 $ 110.00 8116/2013 Mike J Op / Form 5 hrs $ 67.00 $ 335.00 Tyler G Labor 8 hrs $ 51.00 $ 408.00 Dan B Labor 8 hrs $ 51.00 $ 408.00 Patrick J Operator 211 Hitachi 35 mini excavator 6.5 hrs $ 90.00 $ 585.00 Mike J Op I Form 301 JD 624 Loader 3 hrs $ 115.00 $ 345.00 7 1 -ton work Irk 8 hrs $ 30.00 $ 240.00 Bill L Trk Driver 114 Western Star Dip Trk 1 hrs $ 120.00 $ 120.00 Jim S Trk Driver 117 Peterbilt wlsidedump 3 hrs $ 145.00 $ 435.00 W21/2013 Mike J Op / Form 5 his $ 67.00 $ 335.00 Mike J Op / Form 301 JD 624 Loader 2 hrs $ 115.00 $ 230.00 7 1 -ton work Irk 5.5 hrs $ 30.00 $ 165.00 Patrick J Operator 2.5 hrs $ 61.00 $ 152.50 Patrick J Operator 211 Hitachi 35 mini excavator 3 his $ 90.00 $ 270.00 Tyler Labor 5.5 his $ 51.00 $ 280.50 Skip K Trk Driver 129 Kenwonh Conc Trk 1.5 hrs $ 126.00 $ 189.00 8/2 212 01 3 Mike J Op / Form 301 JD 624 Loader 2 hrs $ 115.00 $ 230.00 7 1 -ton work Irk 2 his $ 30.00 $ 60.00 Patrick J Operator 211 Hitachi 35 mini excavator 2 hrs $ 90.00 $ 180.00 Tyler G Labor 2 hrs $ 51.00 $ 102.00 Sub4otal $ 11,869.00 Materials I Subcontractors L 8 I Paperwork 1 Is $ 125.00 $ 125.00 Concrete disposal 3 Ins $ 6.50 $ 19.50 Asphalt disposal 2.6 Ins $ 6.50 $ 16.90 BDI Disposal 1 Is $ 493.27 $ 493.27 BO1 Disposal 1 Is $ 805.00 $ 805.00 Sawcutting (concrete) 60 ft $ 130 $ 198.00 Sawcutting (asphalt) 1 min $ 150.00 $ 150.00 1 1/4" Base Course 16.58 to $ 7.00 $ 116.06 Class A CDF 6 cy $ 35.70 $ 214.20 Wx&xl /4 "plate 1 as $ 206.00 $ 206.00 Concrete replacement per 41h water line contract 8.5 sy $ 60.00 $ 510.00 Asphalt replacement per 4th water line contract 13.86 sy $ 40.00 $ 554.40 Lampson International 1 Is $ 9,670.83 $ 9,670.83 Sub -total $ 13,079.16 RPS Mark -up 15% Mark -up $ 1,961.87 Sub -total $ 15,041.03 SUB-TOTAL $ 26,910.03 SALES TAX 8.6% $ 2,314.26 AMOUNT DUE $ 29,224.30 Sincerely, - 334 Project Manager Bryan F Knapik AGENDA REPORT TO: City Council FROM: Gary Crutchfi anager SUBJECT: Water Rights Fe in Urban Growth Area I. REFERENCE(S): 1. Proposed Ordinance February 7, 2014 Workshop Mtg.: 2/10/14 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 2/10: Discussion III. FISCAL IMPACT: See below IV. HISTORY AND FACTS BRIEF: A) The city's potable water system relies on withdrawals of water from the Columbia River. Those withdrawals are limited by the "water right" permits and certificates owned by the city. The surge in development experienced over the past 15 years has consumed all of the water rights owned by the city, so it must acquire more over time. B) The city has arranged a draft contract with Ecology by which the city will purchase water rights annually from the state at a prescribed price per acre foot. That contract will cover current water consumption commitments and a small growth factor. To withdraw more water than the contract and certificates permit in aggregate, will require acquisition of additional water rights over time. C) The current "market value" of certificated water is around $1,500 /acre foot (according to Darryl Olson, local economist). The typical Pasco dwelling unit consumes about one -half acre foot of potable water annually (for household use), excluding any irrigation use; thus, the consumption value approximates $700. If a dwelling unit relies on potable water for irrigation also, then the annual consumption increases to 3 -3.5 acre feet; in that case, the consumption value rises to a range of $4,500 to $5,200. The vast majority of dwelling units are within and can be served by Franklin County Irrigation District; thus, there should be little reliance on potable water for irrigation purposes. V. DISCUSSION: A) The city will continue to acquire water rights as they become available, but the limited amount owned or contracted by the city should be first consumed by or allocated to development within the city. The city's long - standing policy of allowing new connections to its water system outside its boundaries and within the UGA should be modified to include the requirement to purchase (compensate for) the amount of water rights consumed by a new connection not located within the city (or require the applicant to acquire the proportionate fraction of water right and donate it to the city to offset their related consumption). Adding a fee to be paid at the time of connection will be the most efficient method of compensation. B) Most development within the UGA is composed of single- family dwellings. Based on current market value of water rights, a single family home fee should be set at $700 if served by a separate irrigation system or $4,800 if not so served for irrigation purposes. The county issues between 30 -50 new housing permits within the Pasco UGA annually, so the proposed fee would generate somewhere between $20,000 435,000 annually within the UGA. C) The city recently authorized an extension of its water system to the northwest quadrant of the UGA and development is expected to commence this summer. And new housing units continue to start weekly in the "donut hole" portion of the UGA. Thus, staff recommends Council action as soon as practicable to establish the additional fee. 4(d) ORDINANCE NO. AN ORDINANCE of the City of Pasco, Washington, Creating a New Section 13.16.012 "Connection Outside City Limits - Water Rights" WHEREAS, the rapid growth of the City and its Urban Growth Area (UGA) over the past decade has consumed all of the water rights owned by the City; and WHEREAS, use of the City's limited water rights should be reserved for users located within the City's boundary; and WHEREAS, new connections to the City's water system located outside the City's boundary but within the Pasco UGA should compensate for their consumption of the City's limited water rights; and WHEREAS, development, including housing units, on property served by a separate irrigation source will consume less potable water and associated water rights from the City's water system while development, particularly housing units, relying on the City's potable water system for irrigation purposes will use substantially more water and associated water rights; and WHEREAS, the City Council finds that it should establish a uniform schedule of fees necessary to compensate for commitment of its water rights outside its corporate boundaries; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That a new Section 13.16.012 entitled "Connection Outside City Limits - Water Rights" of the Pasco Municipal Code, shall be and hereby is created and shall read as follows: 13.16.012 CONNECTION OUTSIDE CITY LIMITS - WATER RIGHTS. That from and after April 1, 2014, any application for a new water service connection serving real property located outside the City limits of the City of Pasco shall be required to pay, to the City as a condition for connection, a water right connection fee determined as follows: A) Connections with the irrigation water available. (1) Any connection serving property located within and served by the Franklin County Irrigation District, or other public or private irrigation provider, acceptable to the City for landscaping irrigation purposes, shall pay a water rights connection fee equal to 50% of the market value of one -acre foot of water certificated by the State of Washington Department of Ecology. (2) Any connection serving property not included within nor served by the Franklin County Irrigation District, or other public or private irrigation water provider, or as may be otherwise provided by an alternate source of water acceptable to the City for landscaping irrigation purposes, shall pay a water rights connection fee equal to the market value of three -acre feet of water certificated by the State of Washington Department of Ecology. B) For the purpose of this section, market value of certificated water rights shall be determined periodically, but not less frequently than every five (5) years, and based upon a water market study or investigation for current rates, and designated by the City Council within Chapter 3.07 of the Pasco Municipal Code. Section 2. This Ordinance shall take full force and effect on the 1st day of April, 2014, or five (5) days after its approval, passage and publication as required by law, whichever shall last occur. PASSED by the City Council of the City of Pasco, Washington, and approved as provided by law this _ day of 2014. Matt Watkins, Mayor Attest: Debbie Clark, City Clerk Approved as to Form: Leland B. Kerr, City Attorney Ordinance Creating Chapter 13.16.012 - 2 TO: FROM: SUBJECT: I. II. III. IV. V. AGENDA REPORT City Counc' Gary Crutch anger P Management Compensation Program REFERENCE(S): February 7, 2014 Workshop Mtg.: 2/10/14 1. Memorandum to City Manager from Deputy City Manager dated 2/7/14 ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 2/10: Discussion FISCAL IMPACT: See below. HISTORY AND FACTS BRIEF: A) The City Council established the management compensation program in the late 1980s to include a "merit award" system. The purpose of the merit award system was to create a method by which managers could increase their income on an annual basis for specific actions that warranted the additional compensation for that particular year. The plan was also selected as an alternative to increased salary levels because Pasco did not have the financial capacity to match manager compensation levels in Kennewick and Richland and Council wanted to reduce the financial incentive for managers to leave Pasco in favor of Kennewick and Richland. B) The recent comparison of Pasco management salaries to those of counterparts in several other cities represents the same method required to be used for police and fire bargaining contracts. The "comparable" cities included in the list are those within 50% of Pasco's population and 20% of major financial resources (property tax, utility tax and sales tax receipts); thus, of generally comparable "financial capacity." As revealed in reference #1, the maximum Pasco salary for each position is less than the average top salary of the comparable cities by a healthy margin, before consideration of the merit award program. If limited to Kennewick and Richland, as comparables, the gap approximates 25 %. C) The merit award program permits the City Manager to allocate up to a total of $50,000 annually to individual subordinate managers for achievement of assigned goals during the year and/or for taking actions that result in real financial benefit to the city and its taxpayers. Those actions typically take the form of obtaining grants (which increase revenue and/or offset planned expenditure of local tax dollars) or cost reductions or avoidance (typically found in projects, equipment purchases or staffing changes). Reviewing the past two years of actions taken by management staff reveals that at least $1 million was saved or generated each of those years. That represents a merit award expenditure ratio of less than 5% annually; in other words, Pasco taxpayers realized an annual savings of $1 million in exchange for paying $50,000 in merit awards annually. DISCUSSION: A) The use of the merit award program has drawn criticism from a few citizens over the past year or so. And some Councilmembers have expressed doubt as to its benefit. While some citizens in every community will view merit awards with 4(e) disdain (and prefer to use the term "bonus" in an effort to conjure up the ugly notion of Wall Street millionaires), the fact of the matter is that Pasco taxpayers benefit greatly (and clearly measurably) by the incentivized actions of Pasco's managers. In effect, the merit award program creates a mindset (or culture) in the management group and individuals that they are strongly (and meaningfully) encouraged to accomplish assigned goals and save taxpayer dollars. B) Council should discuss the merits of the merit award program as an element of management compensation and make a philosophical choice. The choices essentially boil down to the following: • Eliminate the merit award program and leave current management salary levels; • Eliminate the merit award program and adjust the management salary levels upward to more closely align with the salary levels in the comparable cities; • Retain the merit award program and keep the management salary levels "near" the salary levels in comparable cities. C) If preferred, Council can assign a committee of Councilmembers to work through details with staff and report back to the full Council. In any event, the question of whether or not to use the merit award program should be determined with some finality so it does not continue to be a disruption to Council meetings or a division amongst Councilmembers. MEMORANDUM February 7, 2014 TO: Gary Crutchfield, City Manager FROM: Stan Strebel, Deputy City Manage RE: Comparison of Management Salaries I have prepared a spreadsheet analysis of management positions for the cities that are currently used by Pasco as "comparables" for labor negotiations. Matching management positions as closely as possible, by duties as well as by title, and eliminating positions which are not comparable (i.e., most cities do not have a court and therefore no court administrator), a list of 18 positions with high comparability was developed for the analysis. To compare compensation levels the top step authorized for each entity for 2013 was used. For cities which provide deferred compensation automatically (without a required employee contribution), the amount of such compensation was included in total compensation. (This is consistent with labor arbitration rulings which require consideration of deferred compensation in the total compensation calculation.) Total average monthly compensation was then calculated for each position excluding Pasco. Average compensation per position was then calculated in order to estimate the annual average outlay for management compensation and employer required, percentage based, benefits (DRS and Social Security). The averages consider only the 18 positions and do not include multiple incumbents (i.e., Police Captains) or the fact that some cities have more management employees than Pasco. Using all of the comparable cities and 2013 data, Pasco's annual outlay for management personnel is, on the average, $234,820 less than for comparable cities. If 2014 salary data for Pasco is compared with the 2013 data for comparables, the difference is reduced to $130,752. If only Kennewick and Richland are used as comparables, the difference in annual outlay for management compensation is in excess of $500,000 per year. The analysis is attached for your review. SS /tlz attachment Management Compensation Comparison- Comparable Cities 2013 C &ED Director Richland Deputy City Manager -C &DS Monthly Deferred Monthly Avg Pasco position City Other City Position Name(s) Top Step Comp Total Top Step A &CS Director Richland Administrative Services Director 11,390 4.0% 11,846 Kennewick Executive Director 11,819 7.5% 12,276 12,705 Pasco Community Development Director 9,572 0.0% 9,572 Deputy City Manager Richland Assistant City Manager 10,542 4.0% 10,964 Kennewick No position 10,714 4.0% 0 10,622 Longview Assistant City Manager 10,007 0.0% 10,007 Walla Walla Assistant City Manager 10,896 3.0% 10,896 Pasco Finance Director 10,531 0.0% 10,531 C &ED Director Richland Deputy City Manager -C &DS 12,305 4.0% 12,797 Kennewick Economic Development Director 11,819 7.5% 10,804 12,705 Longview Community Development Director 8,761 8,761 Mount Vernon Com. and Econ Development Dir. 9,201 9,201 Marysville Community Development Director 12,225 12,225 Wenatchee Com. and Econ Development Dir. 8,793 8,793 Bremerton Community Development Director 10,714 4.0% 11,143 Pasco 9,073 0.0% 9,073 Finance Manager Richland Finance Manager 9,762 3.0% 10,055 Kennewick Finance Director 11,819 7.5% 10,158 12,705 Longview Finance Director 8,761 8,761 Mount Vernon Finance Director 9,201 9,201 Marysville Finance Director 12,225 12,225 Walla Walla Finance Manager 8,032 8,032 Wenatchee Finance Director 8,579 8,579 Bremerton Dr. Finance Services 11,256 4.0% 11,706 Pasco 8,874 0.0% 8,874 Fire Chief Richland Fire & Emergency Services Dir. 11,390 4.0% 11,846 Kennewick Fire Chief 11,819 7.5% 10,581 12,705 Longview Fire Chief 9,720 9,720 Mount Vernon Fire Chief 8,782 8,782 Walla Walla Fire Chief 10,896 10,896 Wenatchee Fire Chief 8,411 8,411 Bremerton Fire Chief 11,256 4.0% 11,706 Pasco 9,435 0.0% 9,435 HR Manager Richland HR & Risk Management Director 10,542 4.0% 10,964 Kennewick HR Director 9,794 4.5% 9,010 10,235 Longview HR Director 8,761 8,761 Mount Vernon HR Director 7,736 7,736 Marysville HR Director 11753 11,753 Walla Walla HR Manager 8,032 8,032 Wenatchee HR Manager 6,316 6,316 Bremerton HR Manager 7,966 4.0% 8,285 Pasco 7,832 0.0% 7,832 IT Manager Richland Information Technology Manager 10,735 3.0% 11,057 Kennewick Information Systems Manager 9,794 4.5% 9,077 10,235 Longview IT Director 8,761 8,761 Mount Vernon IS Director 8,782 8,782 Marysville IS Manager 8708 8,708 Walla Walla Tech Serv. Mgr. 8,891 8,891 Wenatchee IS Director 7,481 7,481 Bremerton IS Manager 8,369 4.0% 8,704 Pasco 8,204 0.0% 8,204 Facilities Services Manager Richland Parks & Facilities Resource Mgr. 7,989 3.0% 8,229 Kennewick no match 0 6,584 Longview Parks Maint. Mgr. 6,529 6,529 Mount Vernon Parks ops. Mgr. 5,896 5,896 Marysville Parks Maint. Mgr. 7,522 7,522 Walla Walla Parks Maint Sup. 5,349 5,349 Wenatchee Parks Maint Sup. 5,813 5,813 Bremerton Parks Maint Sup. 6,494 4.0% 6,754 Pasco 6,836 0.0% 6,836 Recreation Manager Richland Parks & Recreation Program Mgr. 8,069 3.0% 8,311 Kennewick Recreation &Comm. Services Mgr. 7,899 4.5% 7,276 8,254 Mount Vernon Recreation Manager 5,932 Public Works Director 5,932 Marysville Recreation Manager 7,899 12,694 7,899 Wenatchee Recreation Supervisor 6,115 10,896 6,115 Bremerton Athletics/RecreationManager 6,869 4.0% 7,144 Pasco Recreation Manager 6,836 0.0% 6,836 Police Captain Richland Police Captain 8,869 3.0% 9,135 Kennewick Police Commander 10,619 4.5% 9,152 11,097 Longview Police Captain 8,469 8,469 Mount Vemon Lieutenant 8,401 8,401 Walla Walla Police Captain 9,842 9,842 Wenatchee Police Captain 7,967 7,967 Pasco 8,696 0.0% 8,696 Police Chief Richland Police Services Director 11,390 4.0% 11,846 Kenewick Police Chief 12,483 7.5% 11,180 13,419 Longview Police Chief 9,720 9,720 Mount Vernon Police Chief 9,201 9,201 Marysville Police Chief 12,694 12,694 Walla Walla Police Chief 10,896 10,896 Wenatchee Police Chief 9,369 9,369 Bremerton Police Chief 11,826 4.0% 12,299 Pasco 9,955 0.0% 9,955 Public Works Director Richland Public Works Director 11,390 4.0% 11,846 Kennewick Public Works Director 11,973 10,921 4.5% 12,512 Longview Public Works Director 9,720 9,720 Mount Vernon Public Works Director 9,201 9,201 Marysville Public Works Director 12,694 12,694 Walla Walla PW and Services Director 10,896 10,896 Wenatchee Public Works Director 8,793 8,793 Bremerton D r PW and Utilities 11,256 4.0% 11,706 Pasco 9,955 0.0% 9,955 Plants Manager Richland WW /Stormwater Manager 8,069 3.0% 8,311 15,787 Water Manager Kennewick 0 7,715 Kennewick Utilities Services Manager 9,287 4.5% 9,705 Longview Utility Systems Mgr 6,988 6,988 Mount Vernon WW Utility Mgr. 7,006 Chief Admin. Officer 7,006 Marysville Water Quality Mgr. 8,708 8,708 Walla Walla Water Treat/Lab Sup 5,921 13,352 5,921 Wenatchee WW Supervisor 6,381 12,803 6,381 Bremerton Water Resources Mgr 8,369 4.0% 8,704 Pasco 7,209 0.0% 7,209 City Manager Richland City Manager 14,352 10.0% 15,787 Kennewick City Manager 13,755 7.5% 14,787 14,216 Longview City Manager 13,028 13,028 Marysville Chief Admin. Officer 14,126 14,126 Walla Walla City Manager 13,352 13,352 Pasco City Manager 12,803 0.0% 12,803 PW Ops Manager Richland 0 Kennewick Maintenance & Ops Manager 9,148 4.5% 9,560 Bremerton PW Operations Manager 8,370 4.0% 8,705 9,132 Pasco 8,204 0.0% 8,204 Inspection Serv. Mgr Richland Bldg Inspections Supervisor 8,069 3.0% 8,311 Kennewick Building Official 8,832 4.5% 9,229 8,048 Mount Vernon Building Official 7,853 7,853 Marysville Building Official 8,294 8,294 Wenatchee Building Official 6,316 6,316 Bremerton Building Official 7,966 4.0% 8,285 Pasco 7,209 7,209 City Engineer Richland City Engineer 10,629 3.0% 10,948 Kennewick City Engineer 9,794 4.5% 10,235 0 A[ 7 Longview City Engineer 7,787 7,787 Walla Walla City Engineer 8,891 8,891 Wenatchee City Engineer 8,276 8,276 Bremerton City Engineer 10,197 4.0% 10,605 Pasco Fleet Manager 8,874 0.0% 8,874 J,�J / Asst. Field Manager Richland Street Supervisor 7,257 7,257 Kennewick Field Services Supervisor 7,642 4.5% 7,986 Longview Supervisor 5,669 6,839 5,669 Wenatchee Supervisor 5,778 5,778 Bremerton Fleet Manager 7,217 4.0% 7,506 Pasco 6,206 0.0% 6,206 Average w/o Pasco Pasco Average Positions =18 Average Payroll w/o Pasco Pasco Avg Payroll Difference in Outlay Plus % Based Emplr Benefits Total Di£ Compensation Outlay (Based on Comparables, 2013) Difference Based on Pasco 2014 (Other comps at 2013) Difference Based on Tri- Cities (2013) IM i 18 pos x 12 mos =216 18 pos x 12 mos =216 8,684 156,304 2,076,589 /yr 1,875,648 /yr 200,941 /yr 33,879 /yr $234,820 $130,752 $512,425 9,614 173,049