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Home My WebLink About2013-12-02 Regular MinutesTukwila City Council City Hall Council Chambers MINUTES REGULAR MEETING Regular Meeting December 2, 2013— 7:00 P.M. CALL TO ORDER/PLEDGE OF ALLEGIANCE /ROLL CALL Mayor Haggerton called the Regular Meeting of the Tukwila City Council to order at 7:00 p.m. and led the audience in the Pledge of Allegiance. ROLL CALL Christy O'Flaherty, City Clerk, called the roll of the Council. Present were Councilmembers Joe Duffle, Dennis Robertson, Allan Ekberg, Verna Seal, Kathy Hougardy, De'Sean Quinn and Kate Kruller. CITY OFFICIALS Jim Haggerton, Mayor; David Cline, City Administrator; Rachel Turpin, Assistant City Attorney; Peggy McCarthy, Finance Director; Vicky Carlsen, Deputy Finance Director; Bob Giberson, Public Works Director; Gail Labanara, Public Works Analyst; Lavern Peterson, Fire Battalion Chief; Stephanie Brown, Human Resources Director; Mary Miotke, IT Director; Derek Speck, Economic Development Administrator; Rick Still, Parks and Recreation Director; Laurel Humphrey, Council Analyst; Christy O'Flaherty, City Clerk. MOVED BY HOUGARDY, SECONDED BY DUFFIE TO TEMPORARILY EXCUSE COUNCILMEMBER EKBERG. MOTION CARRIED 6 -0. SPECIAL PRESENTATIONS 2013 3rd Quarter Financial Report. Peggy McCarthy, Finance Director Peggy McCarthy, Finance Director, presented a summary of the 3`d Quarter Financial Report. City -wide, unreserved fund balances increased $736K through September 2013 from $39.8M at December 31, 2012 to $40.5M as of September 30, 2013. Governmental funds decreased by $I.2M, with the General Fund declining by $1.6M and the other governmental funds increasing by $400K. This decline at the end of September is typical and also occurs at the end of March due to the timing of the property tax receipts, which peak with the October and April semi - annual property tax billings. The enterprise funds reflected the largest year -to -date change with positive results of $3.5M. All utility funds have performed well, but especially the sewer fund. Monthly sewer fee revenue is at 96.5% of the annual budget for the 9 months and sewer connection charges are 4 times higher than the fees collected for the same period in 2012. The golf course had a good start to the year but rounds of golf dipped in September due to a particularly rainy month; rounds have since rebounded to near prior year levels. The internal service funds declined by $1.5M, reflecting the $1.4M purchase of two fire engines by the Equipment Rental & Replacement Fund. Engine delivery is expected in March 2014. The self- insured health insurance fund realized a $40K increase for the period even with premiums held at 2012 levels. These results are expected to change by.year -end as an annual $325K spend down of the $4.5M fund balance is budgeted for the year. The positive City -wide results can be attributed to three main factors. Firstly, an improving economy with increased construction activity has generated higher revenues. Sales tax revenue is up $833K or 7% and building permit revenue is up $236K or 36% compared with the same period in 2012. These results also exceed budget. Secondly, operating costs have remained within budget parameters with departmental expenditures at 72% for the nine months. Cost increases in certain departments have been offset by Tukwila City Council Regular Meeting Minutes December 2, 2013 Page 2 of 6 savings in other departments. Thirdly, certain governmental and utility fund capital projects planned for 2013 have been rescheduled for 2014, resulting in a postponement of capital expenditures. The City's financial health has also been positively impacted by completion of the Local Improvement District assessment levy and bond issuance. These events occurred in October and November, outside of this third quarter reporting period, but are noted here because of their significant impact on City finances. Of the $9.475 total assessment, the City received $2.8M in prepayments and $6.7M in bond proceeds. These funds will be used to establish the $668K bond guarantee fund, add $3.6M to the Contingency Reserve Fund and finance capital projects, urban renewal and other City priorities. The City is on track to meet its 2013 budgetary goals. Focus for the forthcoming months will be on achieving and maintaining a balance among three objectives: I) restoring and sustaining reserves, 2) funding City priorities to meet strategic goals, and 3) managing debt to optimize current opportunities while minimizing future costs. Councilmember Robertson commented that City Administration has been effective in controlling costs. Councilmember Kruller asked if there is an area where we could have done better. 7:15 p.m. Councilmember Ekberg entered the Council Chambers. Ms. McCarthy relayed that while there is always room for improvement, costs such as those related to overtime due to difficulty filling positions in the Police Department or individuals being on leave that were not anticipated are not within the City's control. The Councilmembers made comments and asked questions regarding the presentation and thanked the Finance staff and City Administration for the report. PROCLAMATION A proclamation for Employee Learning Week Mayor Haggerton read a proclamation declaring December 2 -6, 2013 as Employee Learning Week in the City of Tukwila and strongly encouraging all employers in Tukwila to support continuing education for employees. CITIZEN COMMENTS There were no citizen comments. CONSENT AGENDA a. Approval of Minutes: 11/18/13 (Regular Mtg.) b. Approval of Vouchers: #364909- 365010; #131103- 131106 in the amount of $712,690.23. c. A resolution adopting a Surface Water Comprehensive Plan. [Reviewed and forwarded to Consent by Utilities Committee on 11/18/13.] RESOLUTION 1807 d. Authorize the Mayor to sign an amendment to lease agreement #13 -147 with Alliance One Receivables Management for use of space in the Municipal Court, in the amount of $825.00 per month paid to the City of Tukwila. [Reviewed and forwarded to Consent by Finance and Safety Committee on 11/19/13.] e. Authorize the Mayor to sign an amendment to contract #13 -042 with BERK and Associates for 2014 strategic planning in an amount not to exceed $65,000 per calendar year. [Reviewed and forwarded to Consent by Finance and Safety Committee on 11/19/13.] f. Authorize the Mayor to sign a contract on behalf of Seattle Southside Visitor Services with Miller Schmer, Inc., dba Seattle Express, for shuttle services in an amount not to exceed $120,000. (Paid from lodging taxes from "SeaTac Only" account that is funded 100 percent by SeaTac.) [Reviewed and forwarded to Consent by Finance and Safety Committee on 11/19/13.] Tukwila City Council Regular Meeting Minutes December 2, 2013 Page 3 of 6 g. Authorize the Mayor to sign an agreement with Microsoft for the City's Microsoft Enterprise software renewal in the amount of $86,750.28. [Reviewed and forwarded to Consent by Finance and Safety Committee on 11/19/13.] h. Authorize the acceptance of the State of Washington Heritage Capital Projects Fund Grant for the Duwamish Hill Preserve Phase IIB Project in the amount of $515,000. [Reviewed and forwarded to Consent by Community Affairs and Parks Committee on 11/25/13.] i. Tukwila Transit Center /Andover Park West Street and Water Improvement Projects: (1) Authorize the Mayor to sign a contract with AECOM for construction management and inspection services for the Tukwila Transit Center /Andover Park West Street and Water Improvement Projects in the amount of $739,350.06. (2) Authorize the Mayor to sign Supplement No. 21 to contract #06 -019 with IBI Group for construction engineering support services for the Tukwila Transit Center /Andover Park West Street and Water Improvement Projects in the amount of $80,000. [Reviewed and forwarded to Consent by Transportation Committee on 11/26/13] j. Authorize the Mayor to sign Change Order No. 1 to contract #13 -134 with King Construction relating to the 2013 Annual Sewer Repair Program in the amount of $28,825.85. [Reviewed and forwarded to Consent by the Committee of the Whole on 11/25/13.] MOVED BY DUFFIE, SECONDED BY ROBERTSON THAT THE CONSENT AGENDA BE APPROVED AS SUBMITTED. MOTION CARRIED 7 -0. UNFINISHED BUSINESS a. An ordinance amending Ordinance No. 2389, which adopted the City of Tukwila's biennial budget for the 2013 -2014 biennium, to adopt an amended mid - biennium budget. MOVED BY ROBERTSON, SECONDED BY QUINN THAT THE PROPOSED ORDINANCE BE READ BY TITLE ONLY. MOTION CARRIED 7 -0. Christy O'Flaherty, City Clerk, read the proposed ordinance by title only. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2389, WHICH ADOPTED THE CITY OF TUKWILA'S BIENNIAL BUDGET FOR THE 2013 -2014 BIENNIUM, TO ADOPT AN AMENDED MID - BIENNIUM BUDGET; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. MOVED BY QUINN, SECONDED BY SEAL THAT THE PROPOSED ORDINANCE BE ADOPTED AS READ.* Councilmember Robertson, Chair of the Finance and Safety Committee, expressed that this budget meets the established policies of the City. *MOTION CARRIED 7 -0, TO ADOPT ORDINANCE NUMBER 2426. b. A resolution adopting the 2014 -2019 Financial Planning Model and the Capital Improvement Program for general government and the City's Enterprise Funds. MOVED BY QUINN, SECONDED BY SEAL THAT THE PROPOSED RESOLUTION BE READ BY TITLE ONLY. MOTION CARRIED 7 -0. Christy O'Flaherty, City Clerk, read the proposed resolution by title only. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE 2014 -2019 FINANCIAL PLANNING MODEL AND THE CAPITAL IMPROVEMENT PROGRAM FOR GENERAL GOVERNMENT AND THE CITY'S ENTERPRISE FUNDS. MOVED BY QUINN, SECONDED BY ROBERTSON THAT THE PROPOSED RESOLUTION BE ADOPTED AS READ.* Tukwila City Council Regular Meeting Minutes December 2, 2013 Page 4 of 6 Councilmember Robertson referenced page 233 in the packet. This financial plan follows the policies and procedures the Council has adopted. However, in future years (2017- 2019), the trend that is developing shows that expenses will exceed funds being brought in. Discussions will need to occur next year to address that issue. Additionally, with regard to facilities, we are accumulating revenue based on the sale of land, which is not a sustainable revenue source. Also, the land that was sold was based on bonding, and the money was not used to pay off the bonds. While that does follow the policies in place at this time, this situation warrants further consideration. Councilmember Kruller asked if the Finance and Safety Committee is comfortable with the City's debt service (page 234), and Councilmember Robertson, Chair of the Finance and Safety Committee, responded in the affirmative. *MOTION CARRIED 7 -0, TO ADOPT RESOLUTION NUMBER 1808. c. A resolution updating and clarifying the non - represented employees' compensation and adopting the non - represented salary schedule and benefits summary, effective January 1, 2014. MOVED BY ROBERTSON, SECONDED BY QUINN THAT THE PROPOSED RESOLUTION BE READ BY TITLE ONLY. MOTION CARRIED 7 -0. Christy O'Flaherty, City Clerk, read the proposed resolution by title only. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, UPDATING AND CLARIFYING THE NON - REPRESENTED EMPLOYEES' COMPENSATION AND ADOPTING THE NON - REPRESENTED SALARY SCHEDULE AND BENEFITS SUMMARY, EFFECTIVE JANUARY 1, 2014. MOVED BY DUFFIE, SECONDED BY KRULLER THAT THE PROPOSED RESOLUTION BE ADOPTED AS READ.* Councilmember Robertson said this is the first step toward the compensation policy adopted earlier this year, and it is a work in progress. Councilmember Seal referenced concern from the staff regarding some aspects of the resolution and noted there is still more work to be done. Councilmember Quinn reiterated information on the Council Agenda Synopsis (CAS) form as follows: "In response to a request at the Committee of the Whole, the recommendation for the floating holiday is based on aligning the City with the market study. There is no direct cost for the additional floating holiday since most non - represented employees are salaried, but if the costs were based on hourly rates, the cost could be approximately $16,000 per year." Councilmember Kruller expressed appreciation for the explanation. Councilmember Robertson explained that the market analysis showed that Tukwila was below the comparable cities in some benefits, and the additional floating holiday brings us in alignment with the study. *MOTION CARRIED 7 -0, TO ADOPT RESOLUTION NUMBER 1809. d. Authorize the adoption of Council Standard Operating Policies and Procedures No. CC- POL -02 through CC- POL -07. MOVED BY SEAL, SECONDED BY DUFFIE TO ADOPT THE COUNCIL STANDARD OPERATING POLICIES AND PROCEDURES NO. CC- POL -02 THROUGH CC- POL -07.* Tukwila City Council Regular Meeting Minutes December 2, 2013 Page 5 of 6 Councilmember Kruller expressed appreciation to Council President Hougardy and Council Analyst Laurel Humphrey for their work on the policies. Councilmember Robertson commended Council President Hougardy on the success of policy implementation that was long overdue and also for her accomplishments regarding the establishment of Council Committee goals. *MOTION CARRIED 7 -0. REPORTS a. Mayor There was no report. b. City Council Councilmember Duffie thanked Bob Giberson, Public Works Director, and Gail Labanara, Public Works Analyst, for assisting him this year in his work as Chair of the Utilities Committee. Council President Hougardy attended the South 184th Street ribbon cutting on November 19, 2013. She also joined the Foster High School Civics class for a discussion regarding safety near the school and the possibility of having a Boys and Girls Club program near the high school. On November 20 she attended the Soundside meeting, where there was a presentation about the new gluten free, organic store in Burien. The name of the store is "Start Fresh," and she has sampled their food, which is quite delicious. Additionally, she attended the Highline Forum which was hosted by Tukwila, as well as the Sound Cities Association Networking dinner, where the keynote speaker was Washington State Transportation Secretary Lynn Peterson. Today, she attended the City's Cultural Awareness Workshop and thanked the staff for implementing the High Performing Organization program and noted that Tukwila's Strategic Plan is not sitting on the shelf. Councilmember Kruller attended the South 184th Street ribbon cutting on November 19, 2013 and the Cultural Awareness Workshop conducted today. She also participated in a seminar at Foster High School that provided very valuable information from the students, and she hopes there will be follow -up for continued dialogue. She reported there is an upcoming march on December 5, 2013 regarding the $15.00 minimum wage. They plan to start at 8:30 a.m. in SeaTac and travel to Seattle. She would like to see steps taken to inform our citizens on how to navigate around this successfully. In the last week, there was a celebration of the 100th anniversary of the building of the Temple of Justice in Olympia. She also referenced the 60 Minutes report on the 150th anniversary of the nation's Capitol and relayed it has fascinating historical information. c. Staff David Cline, City Administrator, referenced the City Administrator Report in the packet and offered to answer any questions. d. City Attorney There was no report. e. Intergovernmental There was no report. MISCELLANEOUS Councilmember Duffie witnessed a car being broken into near a store and encouraged everyone to be watchful and aware during the holiday season. Tukwila City Council Regular Meeting Minutes December 2, 2013 Page 6 of 6 Councilmember Kruller encouraged caution during periods of inclement weather. ADJOURNMENT 7:42 p.m. MOVED BY QUINN, SECONDED BY DUFFIE THAT THE TUKWILA CITY COUNCIL MEETING BE ADJOURNED. MOTION CARRIED 7 -0. APPROVED BY THE CITY COUNCIL: 1/6/14 AVAILABLE ON CITY WEBSITE: 1/7/14