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HomeMy WebLinkAboutFS 2010-01-20 COMPLETE AGENDA PACKETCity of Tukwila Finance and Safety Committee O De'Sean Quinn, Chair O Allan Ekberg 0 Kathy Hougardy AGENDA WEDNESDAY (DUE TO THE HOLIDAY), JANUARY 20, 2010 CONFERENCE ROOM #3; 5:00 PM Item 1. PRESENTATION(S) 2. BUSINESS AGENDA a. Police Evidence Facility; Dave Haynes, Police Chief b. Black and White Patrol Cars; Donald Lincoln, Assistant Police Chief c. Residential Burglaries; Mike Villa, Assistant Police Chief d. Sales Tax Report; Shawn Hunstock, Finance Director, e. Pre Retreat Budget Review (please bring your budget books). S The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206 433 -1800 for assistance. Distribution: S. Hunstock D. Speck D. Quinn M. Hart R. Still A. Ekberg S. Kerslake D. Tomaso K. Hougardy K. Kertzman M. Villa D. Robertson T. Kinlow Judge Walden Mayor Haggerton K. Matej B. Arthur S. Lancaster M. Miotke C. Parrish C. O'Flaherty G. Labanara K. Narog S. Brown D. Lincoln S. Kirby B. Giberson N. Olivas S. Norris D. Haynes J. Pace Action to be Taken I Page a. Forward to 1/25 C.O.W. and Pg.1 2/1 Regular. b. Information only. Pg.13 c. Information only. Pg.15 d. Information only. Pg.17 e. Discussion. Pg.21 Next Scheduled Meeting: Tuesday, February 2, 2010 Committee Goals: Work together in cooperation with nearby cities to address common problems in the Highway 99 corridor and Military Road. Ensure a commitment to continued human services funding in relation to the cost of living through consistent review of regional, state and federal budgets affecting human services progams and services (also assigned to CAP). Research the viability of sponsoring a City -wide Citizens' Academy (also assigned to CAP). TO: City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance Safety Committee FROM: Rebecca McGregor, Police Records Manager DATE: December 2, 2009 SUBJECT: New Evidence Storage Facility (17640 West Valley Highway) Jim Haggerton, Mayor ISSUE The issue is the need for a new Police Department Evidence Storage Facility that meets the Washington Association of Sheriffs and Police Chief's (WASPC) accreditation standards and provides a safe work place. Accreditation allows an external agency to define standards for the way our department functions. These standards are developed in accordance with best practices for law enforcement agencies. They are designed to decrease agency liability, and to promote professionalism and excellence in our line of work. Our current evidence storage facilities will not meet accreditation standards, and our WASPC accreditation deadline is March 31, 2010. BACKGROUND Every evidentiary item taken into Tukwila Police Department (TPD) custody should be maintained in accordance with applicable laws and accreditation standards. This includes all vehicles, found property items, and items for safekeeping. TPD evidence is currently stored in 5 locations: The "Vault" located in the PD, a storage space off of the PD "Sallyport," the "Evidence Annex" located at 12026 42 AVE S, the "North Shops Impound Yard" located at the George Long Facility, and the "Minkler Shops Cage" located at Minkler Shops. In the last several years we have also had to rely on Renton Police Department for vehicle storage, and Des Moines Police Department for drying marijuana. While both agencies have been very accommodating to our needs, Renton PD no longer has additional space that they can share with us, and our use of Des Moines PD is dependent on if their drying room is available at the time we need it. Over the last several years we have toured and researched the pros and cons of numerous facilities as potential evidence storage sites. (See attachment G.) After much consideration, the site at 17640 West Valley Highway has been determined to be the best option. Our current evidence storage facilities create numerous health and safety concerns, and do not meet accreditation standards. DISCUSSION There are several reasons a new Evidence Storage Facility is required. Health and Safety Issues 1. According to attachments C and D, an environmental study, specifically a "wall residue sampling," was conducted by Pacific Rim Environmental, Inc. on the Evidence Annex facility located at 12026 42 AVE S, Tukwila, WA. This study noted the following: A white powdery residue covers the majority of the interior wall surfaces. The building does not appear to have adequate ventilation, and the excessive humidity and temperature fluctuations may be causing the white residue. INFORMATIONAL MEMO Page 2 The residue appears to be comprised of calcium carbonate and lime. When re- hydrated the residue will form a mild corrosive. The residue is an irritant to the eyes and respiratory system. Dermal contact should be minimized or avoided. 2. Operable and mechanically sound garage doors are imperative at the Evidence Annex. Currently these garage doors are not automatic, do not have a hydraulic lift, and are in need of multiple and costly repairs. The doors are difficult to open, do not track well, and cannot be safely operated by one person. A member of our Evidence staff suffered an injury while closing one of these garage doors that caused them to be on Light Duty for over a year. This seriously impacted our operations as the PD only has one Full -Time Evidence position. 3. According to standards set forth in the US Department of Justice's, Forensic Laboratories: Handbook for Facility Planning, Design, Construction, and Moving, our current marijuana testing lab is too small and is not adequately ventilated. Toxic chemicals, including chloroform and hydrochloric acid, are used in the marijuana testing process. A safe lab with adequate ventilation and equipment is imperative to the safety of our employees, and to the integrity of the testing process. Accreditation Standards (See attachment El: TPD is scheduled to be re- accredited through WASPC in March 2010. With our current evidence storage facilities as -is, we will not meet the following accreditation standards: 1. 18.3.1: "The permanent storage facility has controls to keep property protected from unauthorized entry, fire, moisture, extreme temperature, and pests." Example Fire: The Evidence Annex, North Shops Impound Yard, and Minkler Shops Cage are not adequately protected against fire. Example Moisture: The North Shops Impound Yard is directly exposed to the elements and not protected from moisture at all. The Minkler Shops Cage is covered, yet not entirely enclosed and is therefore exposed to the elements as well. The Evidence Annex has fluctuating humidity and has had numerous leaks. (These leaks have caused the destruction of numerous items of evidence.) Example Extreme Temperature: The North Shops Impound Yard and the Minkler Shops Cage are located outside, therefore they are not protected from extremes in temperature. The implications of deteriorated and /or destroyed evidence are far reaching. There is a high level of liability and risk for our agency if pertinent case related evidence is damaged or destroyed. (Example One of the aforementioned leaks at the Evidence Annex damaged and destroyed numerous items of evidence that are part of a missing person believed homicide-case.) 2. 18.3.2: "The permanent storage facility containing biohazards or organic matter has systems in place to prevent the exposure of hazards and noxious odors to agency employees and the public." Example: After discussing this standard with WASPC accreditation team members, our current narcotics storage and drying room do not meet ventilation standards. 3. 18.3.4: "Access to the agency's property and evidence facilities is restricted to authorized employees only." W:12010 F &S \Evidence Facility NEW Final 20100113.doc INFORMATIONAL MEMO Page 3 Example: Access to the North Shops Impound Yard and Minkler Shops Cage is not limited to authorized (evidence) employees only. All members of the PD have access to both of these facilities. Funding: The start -up cost for this proposal is $96,600. The lease amount for 2010 is $86,724 *This is based on the 2009 triple net expense which is not anticipated to increase for 2010.) The cost breakdown is as follows: Building Improvements $80,000. Bids were received for upgrading the warehouse space with alarm system and chainlink cages and gates; and the office /laboratory space with a separate security alarm system, added exhaust fans and moving a wall /door and improving the functionality. One year of alarm system monitoring is included along with permit fees and tax. Equipment $16,600: $8,590 of the equipment costs could be paid for using Police Department Seizure funds. (See attachment A for specific items.) There is not currently a funding source for the remaining $8,010 of equipment costs. Lease (60 month contract) No cost for Month 1, Months 2 -36 would be $6,077 plus the triple net expense, and Months 37 -60 would be $6,441 plus the triple net expense. (The triple net expense for 2009 is estimated at $.125 per square feet per month.) There is not currently a funding source for the lease. (See attachments B and F.) Other: The recommended Facility at 17640 West Valley Highway is adjacent to and just east of the Green River. With the placement of 4 foot tall HESCO barriers along the West Valley Highway, the chance of flooding is greatly reduced. Further, the building pad is about 3 to 4 feet higher than the surrounding properties and any minor flood waters would pass in between buildings and flow to the east to the much lower wetland areas to the east. RECOMMENDATION Mayor Haggerton is in support of this proposal. The Council is being asked to approve this proposal and consider this item at the January 25, 2010 Committee of the Whole meeting and the February 1, 2010 Regular Meeting. ATTACHMENTS A: Accessory Costs Worksheet B: Copy of Memorandum to Chief Haynes dated 10/1/09 C: Copy of Memorandum to Acting Chief Sutter dated 10/29/06 D: Copy of Pacific Rim Environmental, Inc.'s "Wall Residue Sampling" from the Evidence Annex E: Copies of WASPC Accreditation Standards Chapter 18 Evidence /Property Control Function F: Lease Proposal from The Andover Company, Inc. G: Site Comparison Spreadsheet W:12010 F &S \Evidence Facility NEW Final 20100113.doc Pr celea_ Edui� *Vehicle Lift -1 positioning System 8 *Go Jacks Sto Rack 2 *Go Jacks Mechanic Toots -1 Tool Box With Me Impact Wrench Tools -1 impact Wrench Air Compre -1 Charger -1 Automatic Battery Autom otive Drip pans 40 Vehicle Spill Kit 4 Pallet Truck- 1 Units pdOHalogen lighting 4 Shelving le Trip Ming 4 Ground u nd Ground Lev Halogen Lighting Cords 6 Electrical E Bike Racks 3 *Lab Table ash Station 1 *portable Eye W Exhaust Hood 1 *Table Top *Exhaust Hood Filters 3 would be Paid for using *These items w Total•. $8,590.18 Seizure funds. (Total Costs ��hme Work sheet Co mments R Total !TaxlShi •lnc. Electrical W ork d $3,650.00 $4,215.75 Installation include $1,61 $173. $168.00 $219.00 208. $72.00 $05 $200.00 1 $6505 $190. $60.00 $481.80 $440.00 $240 90 $220.00 $891.33 $18.50 $371.21 $77.00 $219.00 200.00 $2 781.3 $77.00 $350.40 $77 0 0 $131. $80 $30.00 $243.09 $3 $37.00 $1,606.75 $500.00 $285.80 $237.00 $252.95 $210.00 $1,641.73 $1 363.00 $401.10 $111. Total: $16,660 TO: FROM: DATE: SUBJECT: Cc: Assistant Chief Villa Ciy of Tukwila Police Department An Accredited Agency MEMORANDUM Chief Haynes C� y� Rebecca McGregor "1`= h U October 1, 2009 New Evidence Storage Facility On 9/24/09, Assistant Chief Villa, Evidence Technician Holaday, Bob Giberson, and I met regarding our proposed new Evidence Storage Facility. At this meeting, Bob Giberson confirmed that, upon approval of this project, the building tenant improvements for this facility would be funded through Public Works; most likely through the "303" budget line. At the aforementioned meeting, Bob Giberson also relayed to us that it would be the Police Department's responsibility to secure funding for the monthly lease (including the triple net expense), and associated costs. According to the attached Lease Proposal, there would be no cost for Month 1, Months 2 -36 would be $7,761.88 /month (triple net expense included), and Months 37 -60 would be approximately $8,125.88 /month (triple net expense included at the current 2009 rate). We do not currently have a funding source for the monthly lease. Another additional expense would be alarm system monitoring which would cost approximately $100.00 /month. We also do not currently have a funding source for the monthly alarm monitoring. Attachment B: Memorandum to Chief Haynes Dated 10/1/09 6200 Southcenter Blvd. Tukwila, WA 98188 Phone: (206) 433 -1808 e Admin. Fax: (206) 244 -6181; Invest. Fax: (206) 431 -3688 Cc: Evidence Technician Holaday City of Tukwil a Police Department An Accredited Agency MEMORANDUM TO: Acting Chief Sutter FROM: Rebecca McGregor an/ DATE: August 29, 2006 SUBJECT: Wall Residue Sampling at the Evidence Annex Attachment C: Memorandum to Acting Chief Sutter Dated 10/29/06 Since my responsibilities at the Tukwila Police Department have come to include the Evidence Division, I have spent many hours at our offsite Evidence Annex storage facility located at 12026 42 Avenue South. Each time I am in the building, I experience a multitude of respiratory problems to include labored breathing, coughing, and a "runny" nose. I also experience red and "itchy" eyes. Due to the symptoms I experience when I'm in the building, and the fact that the building is old, I became concerned regarding the white- powdery residue that is prevalent throughout the building. I was especially concerned that this material might, in some way, be hazardous to humans. In order to address these concerns I had an inspection of the facility performed on 7/25/06 by Pacific Rim Environmental, Inc. At that time, Todd Carter (Operations Manager for Pacific Rim Environmental) performed a visual inspection of the building and also took samples of the white residue in the building. This inspection concluded that the white residue "appears to be comprised of calcium carbonate and lime that leaches out of the CMU (concrete masonry unit) block walls." It continued to say, "the residue has a pH of 13 and when re- hydrated will form a mild corrosive. The residue is an irritant to the eyes and respiratory system. Dermal contact should be minimized or avoided." Mr. Carter recommended installing ventilation and dehumidification equipment to reduce the formation of the residue. He also recommended a thorough cleaning of the walls and an application of a waterproofing or water sealing product. Perhaps we could meet sometime next week to determine the next steps that should be taken in reference to the attached report. Although a second opinion may be necessary, I believe based on the conclusions of this report it is evident that further investigation into this problem needs to occur in the near future. 6200 Southcenter Blvd. Tukwila. WA 95188 Phone: (206) 433 -1808 Admin. Fax: (206) 244 -6181; invest. Fax: (206) 431 -3688 August 8. 2006 Rebecca McGregor Police Maim. Assistant Tukwila Police Department Tukwila. WA 98199 Dear Rebecca, Respectfully, Todd Operations Manager Pacific Rim Environmental, Inc. PRE t 13488 Corporate Office 6510 Southcenter Blvd., Ste. #4 Seattle, WA 98188 Phone: (206) 244 -8965 Fax: (206) 244 -90% ACIFIC _MIM NVVIRO MENTAL, .SEAT TIT ,«.pacrim Site Observations ANCHC Subject: Wall residue sampling- Evidence Storage Annex- 12026 42 Avenue South, Tukwila WA Attachment D: Pacific Rim Environmental, Inc.'s "Wall Residue Sampling" from the Evidence Annex On July 25, 2006, Todd P. Carter of Pacific Rim Environmental, Inc. (PRE) performed a visual inspection of the Tukwila Police Department Evidence Storage Annex. During the visual inspection, a sample of the white residue on the buildings interior walls was collected. The sample was visually inspected using 400X magnification and the pH was determined. The structure is a one story concrete block garage with a flat wooden roof. The building is currently used for storage and is occupied infrequently by Police Department personnel. The wood roof deck exhibited evidence of leakage and water damage. The exterior of the building is painted with what appears to be a waterproofing/sealer type product. The building is heated by a gas-fired, forced air heater suspended from the ceiling. No other form of heating or ventilation equipment was observed. However. sections of abandoned metal ductwork remains near the center of the roof. A white powdery residue was observed over the majority of the interior wall surfaces and accumulations of the residue were also observed on horizontal surfaces along the walls. Conclusions and Recommendations The building does not appear to have adequate ventilation. Excessive humidity and temperature fluctuations may be contributing to the formation of the white residue. The residue appears to be comprised of calcium carbonate and lime that leaches out of the CMU (concrete masonry unit) block walls. The residue has a pH of 13 and when re- hydrated will form a mild corrosive. The residue is an irritant to the eyes and respiratory system. Dermal contact should be minimized or avoided. The installation of ventilation and dehumidification equipment may reduce the formation of the residue. Thorough cleaning of the walls and application of a water proofing /sealer product is also advised. If you have any questions regarding this report, please do not hesitate to contact our office at (206) 244 -8965. Anchorage Office Phone (907) 569 -8081 ti ;;�';:pacn.nenv.com CHAPTER 18 Evidence /Property Control Function Attachment E: WASPC Accreditation Standards Chapter 18 "Evidence /Property Control Function" 18.1.1 The agency has written guidelines for the proper collection and identification of evidence and property. These guidelines are consistent with the intent of the policies and procedures outlined in the current Washington State Patrol Evidence Collection Manual. Purpose: To establish written guidelines for agency personnel that ensure evidence and property are properly collected, handled and secured in field operations in order to maintain the integrity of the chain of custody. 18.1.2 Seizures and Forfeitures: Persons with a vested interest in property and evidence are provided the legal reason for the seizure and intended forfeiture as defined by state law. The agency has procedures for notification, appeal and disposition. Purpose: To establish guidelines for agency personnel to insure applicable state and legal procedures are followed, (i.e. drug cases, money laundering cases, DUI's etc.). 18.1.3 Notifications: The agency has policies requiring efforts are made to identify and notify the owners or custodians of property and evidence in the agency's custody. 18.2.1 Booking Property and evidence is placed under the control of the property and evidence function before the officer completes their shift. 18.2.2 Booking The agency has the means to temporarily separate and secure property and evidence while it is waiting processing into the permanent storage facility. 18.2.3 Booking The agency has the means to properly preserve and secure perishable property both temporarily and after it is received in the permanent storage facility. 18.2.4 Booking The agency has the means to temporarily separate and secure evidence containing hazardous materials while it is awaiting processing into the appropriate permanent storage facility. 18.3.1 The permanent storage facility has controls to keep property protected from unauthorized entry, fire, moisture, extreme temperature, and pests. 18.3.2 The peiuianent storage facility containing biohazards or organic matter has systems in place to prevent the exposure of hazards and noxious odors to agency employees and the public. 18.3.3 Physical Security The agency's evidence and property facilities are alarmed and monitored 24/7 18.3.4 Physical Security Access to the agency's property and evidence facilities is restricted to authorized employees only. 18.3.5 Physical Security The agency records the name, date, time, and purpose of persons who enter and leave the storage facility. 18.3.6 Physical Security The agency provides additional security for guns, drugs, cash, jewelry, or other sensitive or valuable property, that is over and above that provided for other property and evidence. 18.4.1 Tracking Evidence and property is packaged, individually tagged and logged into a centralized tracking system as soon as possible. 18.4.2 Tracking Every piece of property and evidence is related to a report describing the circumstances of the seizure or custody by the agency. 18.4.3 Tracking A tracking system accurately describes the current location of every piece of property and evidence. 18.4.4 Tracking The tracking system accurately records the movement of every piece of property and evidence by date, location, reason and person. 18.4.5 Tracking Drugs are weighed using a calibrated scale whenever they enter or leave the secure facility. 18.5.1 Purging The agency has policies governing the release and disposition of property and evidence in accordance with applicable state law. 18.5.2 Purging Property containing hazardous materials, biological hazards or other materials restricted by State or local health regulations is disposed of properly. 18.5.3 Purging When property is sold, the disposition of the money received is accounted for and recorded according to State law. 18.5.4 Purging The agency destroys illegal drugs, contraband and other illegal items by methods that are safe. Documentation of destruction is maintained according to the State's retention schedule. 18.6.1 Audits The agency ensures that an audit of the property and evidence is conducted at least annually. 18.6.2 Audits An audit of property and evidence is conducted whenever a new employee is assigned responsibility of the property and evidence function. Attachment F: Lease Proposal from The Andover Company, Inc. THE ANDOVER COMPANY, r, C O R F A C I N T E R N A T I O N A L August 5, 2009 Miss Rebecca McGregor TUKWILA PD Tukwila, WA 98188 RE: 1 7640 WEST VALLEY HIGHWAY Dear Miss McGregor, The owners of North Valley Business Park have asked me to put together the following Lease Proposal for your review and consideration. PREMISES: 17640 West Valley Highway Tukwila, WA 98188 LANDLORD: North Valley, LLC TENANT: City of Tukwila SIZE: Approximately 13,479 square feet total with approximately 9801square feet of office /storage area. TERM: 60 Months COMMENCEMENT DATE: November 1, 2009 RENTAL RATE: Months 1 0.00 plus NNN Months 2 -36 $6,077.00 plus NNN Months 37 -60 $6,441.00 plus NNN RENTAL RATE CALCULATION: 13,479 s.f. .40 p.s.f. $5,391.00 980 s.f. .70 p.s.f. 686.00 $6,077.00 TRIPLE NET EXPENSE: For tax year 2009, the triple net expense is estimated at $.125 per square feet per month. 415 Baker Boulevard, Suite 200 1 Tukwila, Washington 1 98188 Phone (206) 244 -0770 1 Fax (206) 246 -9229 Y \Brokers \Seymour \George Rockwell Proposals \2009.08 05 GR Crty of Tukwila 17640 Proposal docx SITE ADDRESS 7220 S 180 St Various Segale Business Park 17640 West Valley Highway 730 Andover Park East 1205 Andover Park West 1095 Andover Park East 6444 S 143rd St Square Feet 'Lease Rate I I 5,000 2000 to 20,000 13,749 15,750 13,923 8,140 Was City Owned $1 to $2 /SF plus NNN $.42 /SF plus NNN Shell $0.75/SF plus NNN Office $0.45/SF plus NNN $0.55/SF plus NNN $0.37/SF plus NNN 7216 SF $1.16/S plus NNN Attachment G: Site Comparison Spreadsheet 'Pros Low cost ideal size; excellent security; convenient location 'Cons Limited access, small and poor security mild flood impact probability 'too big; poor security 'too big; poor security (sublease only to 12/09 designed for trucking company maintenance and operation, poor access and security NNN triple net lease where tenant pays pro -rata share of taxes, insurance, outside security /landscape maintenance, utilities, etc. (Comments Former Crystal Springs Water building purchased for S 180th Underpass project; surplused and sold to NC Machinery Lease rate is negotiable in this economy TO: ISSUE BACKGROUND DISCUSSION City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Don Lincoln, Assistant Police Chief DATE: January 12, 2010 SUBJECT: Black and White Patrol Vehicles Beginning with the purchase of fleet patrol vehicles for 2010, the Police Department plans to begin the transition from the currently formatted patrol car colors to the black and white vehicles. Throughout the history of the Tukwila Police Department, there have been many changes to the appearance of our patrol fleet. They have been white, light blue, blue and white, dark blue and since approximately 1989, dark blue with a light blue stripe down each side. They have also been marked with badges, patches, written words etc. The current appearance of our patrol fleet has been in existence for approximately 20 years. It is our belief that the change to black and white patrol vehicles will enhance the appearance of our patrol fleet and provide for greater recognition in our community. The new design was created by a committee of police department representatives and includes the American Flag on the front of both sides, the officer badge in front of both front doors and 444, &e 5w on both rear quarter panels. The opportunity presents itself now for us to order the 2010 fleet replacements (6) with the new paint configuration with no additional cost to the City RECOMMENDATION Information Only. ATTACHMENTS (Illustrations will be provided at the meeting) Jim Haggerton, Mayor TO: CONCLUSION City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance Safety Committee FROM: Mike Villa, Assistant Chief of Police DATE: January 11, 2010 SUBJECT: Residential Burglaries ISSUE Increase in residential burglaries BACKGROUND AND CURRENT SITUATION Jim Haggerton, Mayor The Police Department tracks crime trends on an ongoing basis. In late October we identified a significant rise in the number of residential burglaries. In fact we experienced 39 residential burglaries in October, more than we have had in any one month for the past five years. These burglaries were spread throughout the city. We arrested subjects in four cases, including one where a suspect confessed to several other burglaries. In November residential burglaries dropped to 26. The majority of the burglaries were concentrated north of 518, south of 599, and west of 15. We focused our efforts on investigations, information gathering, and development of a strategy. In December we began implementation of a multi- facetted strategy. One objective was to increase the general public's awareness through crime prevention efforts such as a block watch that was initiated in the Cascade neighborhood and flyers that were distributed to apartment managers and other critical locations. Other facets of the strategy are to utilize investigation and enforcement tactics to attempt to identify and arrest burglary Given the sensitivities of the investigative and enforcement strategies, those will not be covered in detail in this memorandum. The execution of this strategy is ongoing. In December we had 21 residential burglaries. We finished the year with 220 and have made 14 arrests from those cases. Residential burglaries are a problem. During our analysis phase, we became aware that many of our neighboring jurisdictions have also seen a significant rise in residential burglaries. SeaTac, Burien, and Seattle have all seen an increase in this area of crime. We are working with these agencies, the King County Prosecutor's office, and other entities to address this crime trend. Furthermore, we have dedicated resources and reprioritized workload in an effort to reduce residential burglaries in our city. We will continue to analyze the situation and adjust our strategy as needed. TO: City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: December 23, 2009 SUBJECT: Sales Tax Revenue for October 2009 Schedule I in 1,000's Sales Receipt 2008 2009 2009 Increase /(Decrease) %Increase /(Decrease) Month Month Actual Estimated Actual Month YTD Month YTD Jan Mar 1,347 1,403 1,172 (231) (231) 16.46% 0.00% Feb Apr 1,357 1,397 1,051 (346) (577) 24.77% 20.61% Mar May 1,601 1,654 1,146 (508) (1,085) 30.71% 24.36% Apr June 1,365 1,497 1,191 (306) (1,391) 20.44% 23.37% May July 1,635 1,560 1,082 (478) (1,869) 30.64% 24.88% June Aug 1,646 1,757 1,217 (540) (2,409) 30.73% 25.99% July Sept 1,535 1,661 1,473 (188) (2,366) 11.32% 23.76% Aug Oct 1,555 1,647 1,118 (529) (2,549) 32.12% 24.86% Sept Nov 1,426 1,685 1,110 (575) (2,616) 34.12% 25.95% Oct Dec 1,298 1,521 1,032 (489) (2,799) 32.15% 26.55% Nov Jan10 1,265 1,589 Dec Feb10 1,723 2,175 Totals 17,753 19,546 11,592 Mitigation Received 1,589 13,181 92.43% of Budget Incl. Mitigation Jim Haggerton, Mayor Sales tax collections showed the fourteenth consecutive decrease in October compared to the same period in the prior year. For 2009, collections were less than both budget and the same month in the prior year. Actual receipts for October 2009 were $489,000 less than budget, and $266,000 less than the same period last year. We are now down 26.55% for the year compared to budget, and 21.49% compared to the same period last year. The chart above also includes the mitigation payment we will receive at the end of December for the third quarter of 2009. Including the mitigation payment, we are currently at 92% of budget for the year to date. The mitigation payment we will receive on December 31 is $311,528.15. This is a 42.4% increase from the $218,797.89 we received for the same quarter last year. Schedule II shows the year -to -date sales tax from the top ten industry classifications. As this schedule indicates, the trend is flat or down for all of the classifications. INFORMATIONAL MEMO Page 2 Schedule II YTD YTD Dollar Group Name Current Prior Diff. Diff. 452* General Merchandise Stores 1,575,898 1,780,309 (204,411) 11.48% 448* Clothing and Accessories 1,566,219 1,676,733 (110,515) -6.59% 423* Wholesale Trade, Durable Goods 1,102,686 1,614,533 (511,847) 31.70% 722* Food Services, Drinking Places 1,075,617 1,104,125 (28,508) -2.58% 443* Electronics and Appliances 741,483 842,119 (100,636) 11.95% 441* Motor Vehicle and Parts Dealer 592,371 831,557 (239,186) 28.76% 451* Sporting Goods, Hobby, Books 450,295 511,454 (61,159) 11.96% 444* Building Material and Garden 434,657 547,726 (113,069) 20.64% 453* Miscellaneous Store Retailers 408,981 601,964 (192,983) 32.06% 721* Accommodation 392,514 474,016 (81,501) 17.19% Mitigated NAICS Code As you can see there are large variances from last year for the same time period. For instance, sales tax for Building Material and Garden is down by 32.06 Wholesale Trade and Durable Goods is down by 31.70 and Motor Vehicle and Parts Dealer is down by 28.76 As you can see from Schedule II, all of the top ten merchant categories have declined versus prior year, and all ten industry classification codes are ones for which we receive streamlined sales tax mitigation. Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected through October. Schedule Ill YTD YTD Dollar Group Name Current Prior Diff. Diff. 236 Construction of Buildings 377,918 1,154,646 (776,728) 67.27% 334* Computer and Electronic Produc 13,901 38,313 (24,412) 63.72% 323* Printing and Related Support 49,498 131,137 (81,639) 62.25% 442* Furniture and Home Furnishings 278,400 549,729 (271,328) 49.36% 314 Textile Product Mills 10,862 20,813 (9,951) 47.81% 237 Heavy and Civil Construction 60,984 114,436 (53,452) -46.71% 512 Motion Picture, Sound Record 25,213 37,836 (12,623) 33.36% 541 Professional, Scientific, Tech 145,551 217,205 (71,654) 32.99% 621 Ambulatory Health Care Service 48,918 72,931 (24,012) 32.92% 453* Miscellaneous Store Retailers 408,981 601,964 (192,983) 32.06% Mitigated NAICS Code Attached is a Sales Tax Summary comparing year -to -date 2009 vs. 2008 by major NAICS codes. Also included is a comparison of total receipts year -to -date for the last four years. Please let me know if you have any comments or questions. Thank you. W:\FIN Projects\Sales Tax Information\Sales Tax Files from Shawn12009 \Info Memo Sales Tax 122409.doc NAICS CONSTRUCTION 08 TOTAL 236 Construction of Buildings 1,302,567 237 Heavy Civil Construction 130,624 238 Specialty Trade Contractors 530,490 TOTAL CONSTRUCTION 1,963,680 Overall Construction Change from Previous Year MANUFACTURING 311 Food Manufacturing 312 Beverage Tobacco Products 313 Textile Mills 314 Textile Product Mills 315 Apparel Manufacturing 316 Leather Allied Products 321* Wood Product Manufacturing 322' Paper Manufacturing 323' Printing Related Support 324 Petroleum Coal Products 325 Chemical Manufacturing 326 Plastic Rubber Products 327' Nonmetallic Mineral Products 331 Primary Metal Manufacturing 332 Fabricated Metal Mfg Products 333 Machinery Manufacturing 334' Computer& Electronic Products 335 Electric Equipment, Appliances 336 Transportation Equipment Mfg 337' Furniture Related Products 339' Miscellaneous Manufacturing TOTAL MANUFACTURING TRANSPORTATION WAREHOUSING 481 Air Transportation 482 Rail Transportation 484 Truck Transportation 485 Transit and Ground Passengers 488 Transportation Support 491 Postal Services 492 Couriers Messengers 493' Warehousing Storage TOTAL TRANSP WHSING Overall Transportation Change from Previous Year WHOLESALE TRADE 08 TOTAL 423' Whls Trade Durable Goods 1,777,808 424' Whls Trade Nondurable Goods 113,096 425* Wholesale Electronic Markets 2,805 WHOLESALE TRADE TOTAL 1,893,709 Overall Wholesale Change from Previous Year Sales Tax Mitigation NAICS Codes 12/23/2009 08 TOTAL 4,997 2,328 1,050 22,660 215 9 9,515 21,545 143,009 9,630 8,068 4,085 5,242 52 6,310 -8,777 44,162 895 191,525 31,384 22,411 520,315 Overall Manufacturing Change from Previous Year SALES TAX SUMMARY October 2009 (Received in December) YTD 08 YTD 09 YTD Diff 1,154,646 377,918 -67.3% 114,436 60,984 -46.7% 424,581 288,836 -32.0% 1,693,663 727,739 ($965,925) -510% YTD 08 YTD 09 YTD Diff 4,150 1,021 -75.4% 1,706 2,552 49.6% 59 205 247.1% 20,813 10,862 -47.8% 214 37 -82.9% 5 4 -25.7% 7,137 2.404 -66.3% 18,010 16,482 -8.5% 131,137 49,498 -62.3% 7,982 6,898 -13.6% 7,019 5,428 -22.7% 3,921 3.694 -5.8% 4,505 1,986 -55.9% 52 477 812.1% 5,498 3,096 -43.7% -9,366 5,304 156.6% 38,313 13,901 -63.7% 661 128 -80.6% 138,671 105.241 -24.1% 30,133 7,423 -75.4% 17,266 9,037 -47.7% 427,886 245,677 ($182,210) -42.6% 1 YTD 08 TOTAL 08 YTD 09 YTD Diff 0 0 0 0.0% 1,935 1,623 891 -45.1% 965 401 2,758 588.2% 11,502 9,778 9,225 -5.7% 28,728 22,965 17,212 -25.0% 88 88 0 -100.0% 476 469 91 -80.5% 781 662 926 39.9% 44,475 35,985 31,104 ($4,880) -13.6% YTD 08 YTD 09 YTD Diff 1,614,533 1,102,686 -31.7% 91,976 86,589 -5.9% t 2,498 1,759 -29.6% 1,709,006 1,191,034 ($51Z972) -30.3% NAICS 1 441' 1 447* NAICS 442' 443* 444' 445' 446' 448' 451' 452' 453* 454* AUTOMOTIVE Motor Vehicle Parts Dealer Gasoline Stations TOTAL AUTOMOTIVE RETAIL TRADE Furniture Home Furnishings Electronics Appliances Building Material Garden Food Beverage Stores Health Personal Care Clothing Accessories Sporting Goods, Hobby, Books General Merchandise Stores Miscellaneous Store Retailers Nonstore Retailers TOTAL RETAIL TRADE SERVICES 51X Information 52X Finance Insurance 53X Real Estate, Rental, Leasing 541 Professional, Scientific, Tech 551 Company Management 56X Admin, Supp, Remed Svcs 611 Educational Services 62X Health Care Social Assistance 71X Arts Entertainment 72X' Accommodation Food Svcs 81X Other Services 92X Public Administration TOTAL SERVICES Page 1 08 TOTAL 993,146 73,034 1,066,181 Overall Automotive Change from Previous Year 08 TOTAL 621.785 1,077.238 619,645 88,317 146.841 2.101,593 644.522 2,231,745 721,034 116,347 8,369,066 Overall General Retail Change from Previous Year 08 TOTAL 570,706 75,585 403,851 338,302 1,902 167,119 12,727 109,308 106.515 1,858,292 192,450 843 3,837,599 Overall Services Change from Previous Year MISCELLANEOUS 08 TOTAL 000 Unknown 1,147 111 -115 Agriculture, Forestry, Fishing 1,095 211 -221 Mining Utilities 19,574 999 Unclassifiable Establishments 35,837 MISCELLANEOUS TOTAL 57,652 Overall Miscellaneous Change from Previous Year 08 TOTAL GRAND TOTALS 517,752,678 Grand Total Change from Previous Year 08 YTD 878 1,062 18,777 29,048 49,765 08 YTD 614,766,418 TUK Soles rox Rpt 200910.x1s YTD 08 YTD 09 YTD Diff 831,557 592,371 -28.8% 63,274 52,748 -16.6% 894,831 645,119 ($249,712) -27.9% 08 YTD 09 YTD Diff 549,729 278,400 -49.4% 842,119 741,483 -12.0% 547,726 434,657 -20.6% 74,218 71,257 -4.0% 115,140 147,812 28.4% 1,676.733 1,566,219 -6.6% 511,454 450,295 -12.0% 1,780,309 1,575,898 -11.5% 601,964 408,981 -32.1% 91,785 177,929 93.9% 6,791,177 5,852,930 ($938,247) -13.8% YTD 08 YTD 09 YTD Diff 473,322 434,637 -8.2% 51,671 43,994 -14.9% 347,495 315,113 -9.3% 217,205 145,551 -33.0% 1,384 862 -37.7% 140,511 101,896 -27.5% 9,164 38,010 314.8% 91,788 66,072 -28.0% 94,651 80,558 -14.9% 1.578,140 1,468,131 -7.0% 158,375 152,180 -3.9% 397 28,776 7155.3% 3,164,104 2,875,781 ($288,323) -9.1% YTD 09 YTD Diff 397 -54.8% 143 -86.5% 13,503 -28.1% 9,501 -67.3% 23,545 ($26,220) -52.7% YTD 09 YTD Diff $11,592,930 ($3,173,488) 21.49% 2009 2008 L co 0 2007 2006 Four Year Comparison s- $4,000,000 $8,000,000 $12,000,000 Taxes Collected Year to Date $16,000,000 MEMORANDUM TO: Finance Safety Committee FROM: Dennis Robertson, Council President0p BY: Kimberly Matej, Legislative Analyst CC: Shawn Hunstock, Interim City Administrator and Finance Director DATE: January 14, 2010 SUBJECT: Pre Retreat Budget Review City of Tukwila City Council As Council President, I will be working with the Finance Director and Legislative Analyst to prepare a draft agenda for the 2010 Annual Council Retreat. I anticipate having a draft agenda to the Council sometime during the last week of January /first week of February, and that the majority of the Retreat will focus on discussion of the budget. Per Council discussion at the January 11 COW, Council Committees will conduct detailed review of the 2009 -10 Biennial Budget document in preparation for the 2010 Annual Council Retreat. Council Committees have each been assigned portions of the budget to review over the course of three consecutive meetings. The review schedule for the Finance Safety Committee is included at the end of this memo. The Committee can choose to move at a faster pace, if desired by its members. The Committee review process, as discussed at the January 11 COW, is outlined below. It is intended to assist the full Council in considering potential program alternatives, expense /capital reductions and /or new revenue opportunities in response to the severity of the City's budget crisis. Committee Review Process Utilizing the 2009 -10 Biennial Budget document, review the pages assigned to the Committee as outlined below. Committee member review, understanding and familiarity of the assigned budget items should be thorough enough that the three Committee members feel comfortable serving as the Council experts for discussion of the appropriate items during the Retreat. As mentioned above, it is the intent of the Committee review process to prepare Committee members with adequate knowledge of assigned sections so that they can assist the rest of the Council in a meaningful discussion of the items at the Retreat. Department directors and managers will be available during Committee meetings, as a resource, to answer questions regarding budget items. Discussions at the Committee meetings should be a Committee -led process, not staff -led. Specifics on budget items, as discussed in the Committee, will not be documented in the Committee minutes. Each Committee member should keep ample individual notes that will aid you in discussing items at the Retreat. Committees are not being asked to make any recommendations regarding the budget during the Committee meetings. Since the strength of the Council is the experience and knowledge of all seven Councilmembers, policy -level discussions regarding budget issues are best addressed with the full Council and Mayor working together. Finance Safety: Pre Retreat Budget Review page 2 Finance Safety: Review Schedule Wednesday, January 20, 2010 BUDGET PAGES Finance 64 -65 Insurance Fund 185 Contingency Fund 151 Contributions /Fund Balance 144 Tuesday, February 2, 2010 Insurance Fund LEOFF 1 Firemen's Pension Fund Fire Fire Equipment Reserve Tuesday, February 17, 2010 Police BUDGET PAGES 186 187 110 -123 152 BUDGET PAGES 94 -106 Transportation: Pre Retreat Budget Review page 2 Finance Safety Review Schedule Wednesday, January 20, 2010 Finance Insurance Fund Contingency Fund Contributions /Fund Balance Tuesday, February 2, 2010 Insurance Fund LEOFF 1 Firemen's Pension Fund Fire Fire Equipment Reserve Tuesday, February 17, 2010 Police BUDGET PAGES 64 -65 185 151 144 BUDGET PAGES 186 187 110 -123 152 BUDGET PAGES 94 -106