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Home My WebLink About2007-10-08 Committee of the Whole MinutesTUKWILA CITY COUNCIL October 8, 2007 7:00 p.m. Council Chambers City Hall COMMITTEE OF THE WHOLE CALL TO ORDER/PLEDGE OF ALLEGIANCE Council President Verna Griffin called the meeting to order at 7:04 p.m. and led the audience in the Pledge of Allegiance. OFFICIALS Present were Verna Griffin, Council President, Councilmembers Joe Duffie, Joan Hernandez, Pam Carter, Jim Haggerton, Pam Linder, and Dennis Robertson. ATTENDANCE Steven Mullet, Mayor; Rhonda Berry, City Administrator; Kevin Fuhrer, Finance Director; Derek Speck, Economic Development Administrator; Jim Morrow, Public Works Director; Gail Labanara, Public Works Analyst; Jack Pace, Acting Community Development Director; Lisa Verner, Project Manager; Nick Olivas, Fire Chief; David Haynes, Police Chief; Shelley Kerslake, City Attorney; Kimberly Matej, Council Analyst; Jane Cantu, City Clerk; Christy O'Flaherty, Deputy City Clerk. COUNCIL CONSENSUS EXISTED TO ALTER THE ORDER OF THE AGENDA ITEMS TO DISCUSS COMMITTEE OF THE WHOLE ITEMS #3E (BUDGET DISCUSSION AND REVIEW) AND #4 (REPORTS) AFTER THIS EVENING'S SPECIAL MEETING. CITIZEN COMMENT There were no citizen comments. SPECIAL ISSUES a. Proposed ordinance modifying Business License fees (Public Meeting format) Councilmember Haggerton indicated this item was discussed at the Finance and Safety Committee meeting on October 1, 2007. The committee members were unanimous in recommending approval. Christy O'Flaherty, Deputy City Clerk, provided an overview of this issue. The Council is being asked to consider a proposed ordinance to increase the City's business license fees. The current fees were established in 1980 and are based on the number of employees at the Tukwila location as follows: 0 -5 employees $50 per calendar year; 6 -100 employees $100 per calendar year; 101 and above $200 per calendar year. The City does not impose a Business and Occupations (B &O) tax on Tukwila businesses. The number of businesses in the City has more than doubled since the fees were established, and a new structure has been developed to create a greater degree of equity within the schedule. A thorough analysis of business license data was undertaken and new categories created as follows: 0 to 20 employees 21 to 50 employees 51 to 100 employees 101 and above Home Occupations $100 per calendar year $150 per calendar year $200 per calendar year $300 per calendar year 50 per calendar year City of Tukwila Page 2 of 4 City Council Committee of the Whole Minutes October 8. 2007 The Finance and Safety Committee members requested an additional category of "501 and above" with an annual fee of $400. Upon review of the business license data, it was found that only 4 businesses would fit into that category, and the decision was made to retain the fee structure as presented above. It was suggested that business license fees be reviewed regularly, and it is the intent of the City Clerk's Office to review and update the entire business license code in 2008. The proposed fee increase will be referenced in the upcoming edition of the Hazelnut newsletter, the City website, and in renewal correspondence sent to Tukwila businesses in December. A public meeting notice was advertised for this agenda item, and Council President Griffin asked for comments from the audience. No citizen comments were received. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. b. Proposed resolution ordering the cancellation of outstanding, unredeemed Finance claims /payroll checks, Municipal Court checks, and Foster Golf Course gift certificates Councilmember Haggerton indicated this item was discussed at the Finance and Safety Committee meeting on October 1, 2007. The committee members were unanimous in recommending approval. Kevin Fuhrer, Finance Director, provided information regarding this topic. The State of Washington Department of Revenue requires a one -year dormancy period for outstanding claims /payroll checks and a two -year dormancy period for gift certificates. After making all reasonable attempts to locate and contact property owners to resolve the issues, the City wishes to cancel outstanding claims /payroll checks and gift certificates by passage of a resolution. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. c. Proposed resolution dissolving change and petty cash funds Councilmember Haggerton indicated this item was discussed at the Finance and Safety Committee meeting on October 1, 2007. The committee members were unanimous in recommending approval. The Municipal Court staff has requested consideration of discontinuing the long- standing practice of paying witness fees in cash from a $500 petty cash fund. From an internal control perspective, it is more appropriate to pay the fees via a check processed through the accounts payable system. Additionally the 6300 Building Change Fund has not been utilized by DCD permit center staff and has been determined to be unnecessary. The Council is being asked to pass a resolution to dissolve both of these petty cash funds. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. d. Proposed resolution regarding annual write -off for Accounts Receivable. Councilmember Haggerton indicated this item was discussed at the Finance and Safety Committee meeting on October 1, 2007. The committee members were unanimous in recommending approval. There are a number of accounts receivable and returned checks that have been deemed to be uncollectible. The proposed resolution will remove the uncollectible account balances from the City's financial records. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. e. Budget Presentation (discussion and review of the proposed Budget and CIP to occur after the Special Meeting this evening per Council consensus on page 1). Kevin Fuhrer, Finance Director, introduced the presentation on the Mayor's proposed budget for 2008. He offered the following proposed timeline for continued budget discussions and adoption. City of Tukwila Page 3 of 4 City Council Committee of the Whole Minutes October 8. 2007 Detailed review commenced October 2 Goal to complete review at the committee level on November 6 Public Hearing will be scheduled for November 19 Final adoption on December 3 or 10 Mayor Mullet offered a summary of the proposed 2008 budget highlights: Revenues projected increase of 6.52% above 2007 budget Expenditures projected increase of 5.98% above 2007 budget Initiatives: Centennial Celebration Capability for online permit application Additional staff position in the City Clerk's Office Increase in business license and permit fees Council emergency management initiative Mr. Fuhrer offered additional information regarding revenues and expenditures and comparisons of 2007 and 2008 financial data. The Councilmembers asked questions of Mr. Fuhrer regarding various portions of the budget presentation. Councilmember Robertson offered comments, from his perspective, regarding this budget and future budgets. He relayed that while revenue is increasing by 3.75 the cost of Operations and Maintenance or the cost to run the City is increasing by 6 He sees the same trend in the Capital Improvement Plan (CIP) in that by the year 2013, the essential costs of running the City will equal almost exactly the amount of the revenues. This will leave no funding for capital improvement projects such as street paving and other needed improvements. In his view, over the next 6 years, the Ending Fund Balance will go from $20 million to $3 million which is the minimal amount the City must have to be fiscally solvent. He relayed that while the 2008 proposed budget is a sound document, the City does have a negative fiscal situation to contend with over the next few years. ADJOURN TO SPECIAL MEETING 7:47 pm COUNCIL PRESIDENT GRIFFIN DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED TO CONVENE A SPECIAL MEETING. (Special Meeting minutes available under separate cover.) 8:49 pm COUNCIL PRESIDENT GRIFFIN RECONVENED THE COMMITTEE OF THE WHOLE MEETING TO DISCUSS COMMITTEE OF THE WHOLE ITEMS #3E (BUDGET DISCUSSION AND REVIEW) AND #4 (REPORTS). e. Review of 2008 Budget and CIP Kevin Fuhrer, Finance Director, introduced each of the following sections of the budget for review by the City Council. The Councilmembers discussed the items and asked for clarification from staff as needed. Council amendments or additions to the preliminary budget were noted by the Finance Director and departmental staff members. Mayor Mullet left the Council Chambers at 9:58 pm. City of Tukwila Page 4 of 4 City Council Committee of the Whole Minutes October 8, 2007 REPORTS COUNCIL CONSENSUS EXISTED TO DISPENSE WITH REPORTS. Council President Griffin announced a farewell reception for Dr. Hammond from the Tukwila School District will be held on October 29, 2007 at 6:30 pm. Kimberly Matej, Council Analyst, indicated the Council Retreat will be held in February 2008. This will allow participation by the new Councilmember and allow time for attendance at the New Councilmember" training offered by the Association of Washington Cities (AWC) prior to the retreat. She asked for any suggestions from the Council as to a preferred location. ADJOURNMENT City Council Facility Replacement 302 General Government Improvements 303 Attachment D Water Water 401 Attachment E Sewer Sewer 402 Water /Sewer Revenue Bonds 404 Bond Reserve 405 Street Fund 103 Bridges Arterial Street 104 10:51 p.m. COUNCIL PRESIDENT GRIFFIN DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED. 3 Veh a' riffin, Council President Christy O'Fleerty, ieputy City Clerl::-" BUDGET CIP PAGES PAGES 27 -30 150 73 -77 151 71 -72 XV -XVI 153 -157 78 -106 XVII -XVIII 158 -161 107 -132 162 163 1 -5 31 -35 36 -70