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HomeMy WebLinkAbout2008-10-27 Committee of the Whole MinutesTUKWILA CITY COUNCIL October 27, 2008 7:00 p.m. Council Chambers City Hall COMMITTEE OF THE WHOLE CALL TO ORDER /PLEDGE OF ALLEGIANCE Council President Joe Duffie called the meeting to order at 7:02 p.m. and led the audience in the Pledge of Allegiance. Council President Duffie asked all City employees, citizens and visitors to stand and be recognized. OFFICIALS Present were Joe Duffie, Council President; Councilmembers Joan Hernandez, Pam Linder, Dennis Robertson, Verna Griffin, Kathy Hougardy, and De'Sean Quinn. ATTENDANCE Jim Haggerton, Mayor; Rhonda Berry, City Administrator; Shawn Hunstock, Finance Director; David Haynes, Police Chief; Jim Morrow, Public Works Director; Gail Labanara, Public Works Analyst; Kimberly Walden, Municipal Court Judge; Jack Pace, Community Development Director; Mary Miotke, IT Director; Bruce Fletcher, Parks and Recreation Director; Derek Speck, Economic Development Administrator; Lisa Verner, Project Manager; Kimberly Matej, Council Analyst; Christy O'Flaherty, City Clerk; Melissa Hart, Deputy City Clerk. SPECIAL PRESENTATIONS a. Update on alternative revenue sources Peter Moy, Principal of FCS Group, indicated the presentation this evening is an update to the review and analysis previously provided to the Council in 2006. Mr. Moy utilized a PowerPoint presentation to provide a synopsis of Tukwila's General Fund revenue review. Some key elements of the presentation included the following: POTENTIAL REVENUE SOURCES Property Taxes: The City's current property tax rate is $2.56911 per $1,000 of assessed value. The City's maximum levy is $3.20814 per $1,000 of assessed value. A property tax lid lift would allow the City to exceed the 1% tax limitation, if a majority of voters approved a ballot measure. Based on Tukwila's 2008 valuation, every $.10 per $1,000 of assessed value results in an additional $386,102.00 of revenue. The levy lid lift can last for a maximum of 6 years, and there are two types: temporary and permanent. Emergency Medical Service (EMS) levy: The King County EMS levy is currently at $.30 per $1,000.00; because it is less than $.50 per $1,000.00, the City is allowed an EMS levy of $.20 per $1,000.00. The maximum amount of revenue generated, based on the City's 2008 assessed value, would be $772,204.00 ($.20 per $1,000 of assessed value). The levy must be authorized by at least 60% of the registered voters and voter turnout must be at least 40 Councilmember Hernandez inquired about the comparison between the King County levy and a City sponsored EMS levy, and any limits on the City EMS levy. Mr. Moy explained if there currently is a County levy in place, the municipality requesting an additional levy can only take the difference of the $.50 per $1,000.00. The City would need to review the current interlocal agreement regarding the current levy percentages and what, if any, additional percent is available. City of Tukwila Page 2 of 7 City Council Committee of the Whole Minutes October 27. 2008 Business and Occupation (B &O) Tax: The B &O tax rate must be at a single uniform rate and cannot exceed .002 percent. With the single uniform rate, the City can choose to tax each business class at a different rate. Based on Washington State Department of Revenue figures, if Tukwila currently had a B &O tax; approximately $218,994.00 for every .0001 percent tax rate would be generated. Eleven cities in King County have a business and occupation tax on businesses. Councilmember Robertson inquired about the creation of different categories, and whether a category could also be based on the gross revenue of the business. For instance, the City would not tax businesses with revenue less than $250,000.00. Mr. Moy provided clarification in that the particular scenario stated would not be a rate classification; rather it would be an exemption, and that would apply to all businesses in the same class. Public Utility Business and Occupation Tax: There is no limit on the tax rate for public utilities. Fourteen King County cities tax their water and sewer utilities and eight tax their stormwater utility. Implementation of a franchise fee for solid waste is another revenue option available to the City. Councilmember Robertson asked whether the tax would be applied evenly across the board for all utility customers, or the City would establish a minimum that would not be taxed. Mr. Moy indicated the tax is based on the total revenue captured, not on customer class or utility bill amount. Business License Fees: Tukwila recently changed the current business license fees, and an alternate approach would be to charge a fee based on employee hours. Redmond and Renton utilize the approach that 30% of base fees are assigned to the General Fund, and the remaining 70% are budgeted to the Capital Improvement Fund for transportation improvements. The reasoning behind the specified split of revenue is that businesses attract employees, thereby, increasing traffic in the city. Councilmember Robertson stated the City's increased traffic is due to the large retail base in our area. Would there be a way to assess a fee structure to ensure a business that does not create as much foot traffic, a large manufacturing company, does not pay more than a retail store. Mr. Moy indicated the company that employs a large number of workers would pay their share of traffic fees. If a new developer wanted to build a new retail location, the City could assess traffic impact fees to offset and mitigate the costs associated with traffic. For existing businesses in the area, the only option to generate revenue would be through a B &O tax. Planning Fees: Based on a very general review of the Community Development Department, 2008 cost recovery for the planning permits and applications could be increased. Indirect Cost Allocation: The City's current administrative cost allocation model has been in existence since 1986, and for the most part has not been changed. A review of the factors and cost allocation framework may or may not result in additional revenue to the General Fund. Councilmember Quinn inquired which of the options presented is the most reasonable for implementation. Mr. Moy indicated that would depend on what the City classifies as reasonable and the type of investment. For any of the options that require voter approval, the City would be required to pay King County to hold the election and any campaigning for either the property tax lid lift or the EMS levy. Regarding the business and occupation tax implementation, the City would have compliance issues, reporting requirements, administrative structure and audit requirements. The least labor intensive option would be taxing the City's utilities and increasing planning fees. Councilmember Robertson asked if Fire inspection fees were included in the General Fund review and whether other jurisdictions recover inspection fees. Mr. Moy indicated FCS Group did not review fire inspection fees. He explained, the City could change that fee structure to recover the actual cost of an inspection, depending on the TMC. Mr. Moy stated other jurisdictions do charge and recover those fees. City of Tukwila Page 3 of 7 City Council Committee of the Whole Minutes October 27. 2008 Councilmember Hernandez requested clarification on the type of fee schedule Renton charges. Mr. Moy stated Renton's business license fee is based on the employee hours of each company. Mayor Haggerton indicated the logic behind the Renton and Redmond fee schedule is they have large companies in their cities with a sizeable employee base. Redmond is able to capture a larger revenue source from Microsoft for example. An employee hours head tax might not be as beneficial for Tukwila as it is for other cities. b. Phase 11 and 111 findings of the Fire Study Rhonda Berry, City Administrator, introduced Bruce Caldwell, Senior Vice President, and Martin Goughnour, Financial Director, of Emergency Services Consulting, Inc. ESCi previously presented information regarding Phase I of the Fire Master Plan. This evening the presentation is centered on Phase II and Phase III, opportunities for cooperation. Mr. Caldwell utilized a PowerPoint presentation regarding Phase II, Opportunities for Partnership Efforts and Phase III, Findings and Recommendations. Some of the key elements included: Processes for Collaboration: Collaboration: No permanent organizational commitment Decision making power remains with the individual organizations Consolidation: Involves a commitment to continue for the foreseeable future Decision making power is shared or transferred Is agreement driven Integration: Involves changes to corporate control and /or structure, including creation and /or dissolution of one or more organizations. Future Deployment Scenarios: Currently six engine companies, one truck company, a fleet of three unstaffed aid cars, command and specialty vehicles exist in the two cities. Joint Station for Fire Station No. 47 and No. 54, relocate Fire Station No. 51 Opportunities for Partnership Efforts: Synopsis of Opportunities for Partnership Efforts Opportunities include: Consolidate Fire Station Nos. 47 and 54 Develop Standard Operating Guidelines Develop a Joint Support and Logistics Services Division Develop a Fire Safety Education Coalition Create a unified Training Manual Implement and Cooperatively use a Video Conferencing System Develop a unified Fire and EMS Training Facility Consolidate training into a unified Training Division Purchase and Implement an Electronic Staffing Program Consolidate Fire Prevention Services Findings: SeaTac and Tukwila Fire Departments: Are interdependent Value customer service Meet the public's service exception Existing efforts have reduced duplication Other organizations should be included in partnership initiatives The regional transportation system limits emergency response Emergency service cost is variable Policymakers should develop a plan to implement partnership opportunities City of Tukwila Page 4 of 7 City Council Committee of the Whole Minutes October 27. 2008 Many cost avoidance opportunities exist All other cooperative opportunities are feasible Recommendations and Moving Forward: Establish an Oversight Board to plan and manage the implementation of feasible partnership opportunities Consolidate Fire Station Nos. 47 and 54 Develop a Joint Life Support and Logistics Services Division Consolidate training into a unified Training Division Purchase Uniform Emergency Apparatus Develop Uniform Pre incident Plans Consolidate Fire Prevention Service Council President Duffle inquired who would be financially responsible if the consolidation of Fire Station Nos. 47 and 54 were done. Mr. Goughnour indicated the responsibility would fall to the City where the new facility would be located. Councilmember Robertson expressed interest in reviewing a table that compares Tukwila and SeaTac in staffing by department, the number of fire stations, major equipment, City size, and differences between the two departments. Mr. Caldwell indicated there is a document for each of the cities separately in each of the City's Fire Master Plans. The City of SeaTac has not released their Fire Master Plan for review, and at that time, Tukwila will be provided a copy. He also stated Tukwila is the smaller of the cities, but has more stations than SeaTac. Tukwila's effective population is about 158,000 people on a daily basis, and SeaTac currently has a daytime population of only 96,000 people, including the airport. Councilmember Robertson inquired whether the airport, as a whole, is included in the City of SeaTac's assessed valuation. Mr. Caldwell indicated the airport is not included in SeaTac's assessed valuation. Councilmember Hougardy inquired how the administration would work if Fire Station Nos. 47 and 54 were combined. Mr. Caldwell indicated the one station would house the two different crews, a Tukwila crew and a SeaTac crew. Each City's administration would be financially responsible for the crew stationed at the new fire station. Currently, SeaTac is in the market for a new fire station; the property tentatively selected is close to Tukwila's city limits. Mr. Caldwell indicated the station would operate as a joint station with each crew running interdependently. The added advantage of two full crews would be to back up each other on call volume. When one crew is responding to a call, there is another crew available for a second call should the need arise. Council President Duffie thanked the consultants for their presentations. Rhonda Berry, City Administrator, indicated there are some opportunities available to the Cities of Tukwila and SeaTac. Administration has requested the two Fire Chiefs collaborate and create a list as to which of the recommendations are the most feasible and present the findings to Administration and Council at a later date. CITIZEN COMMENT Daniel Temkin, 1809 Seventh Avenue, Ste. 1002, Seattle, representing Amalfi Investments, expressed concerns regarding the Duwamish Gardens Project and the implementation of the proposed Shoreline Master Program. Under the current proposal, the Shoreline Master Program would realign the shoreline to create a new salmon habitat, thereby substantially relocating the ordinary high water mark landward of its current location. These proposed changes will have an adverse effect on Amalfi Investments and the lessee on the full use of the property. Amalfi Investments will be impacted by millions of dollars should the proposed Duwamish Gardens Project and the Shoreline Master Program changes be implemented. Chuck Parrish, 4430 South 150 Street, appreciated the presentation by Mr. Moy regarding the General Fund update. Mr. Parrish indicated the possible business and occupation tax option would have the least impact on the citizens. The City of Seattle has a tax threshold of greater than $50,000, and the City of City of Tukwila Page 5 of 7 City Council Committee of the Whole Minutes October 27. 2008 Burien's current threshold is at $100,000. The threshold for small business exemption would still add revenue to the budget, and this option appears to be the best choice for the City. SPECIAL ISSUES a. Contract with the Cascade Land Conservancy regarding the Duwamish Riverbend Hill project. Councilmember Hernandez indicated this item was discussed at the Community Affairs and Parks Committee meeting on October 13, 2008. The committee members were unanimous in recommending approval. The next phase of development on the Duwamish Riverbend Hill project will require project management by Cascade Land Conservancy in a collaborative effort with the Parks and Recreation Department. This agreement for services will not exceed $30,000.00, and the funding will come from the extended land lease collected from Sound Transit. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. b. Interurban Avenue South Waterline Construction Management Services Supplemental Agreement with Anchor Environmental. Councilmember Griffin indicated this item was discussed at the Utilities Committee meeting on October 20, 2008. The committee members were unanimous in recommending approval. Supplement No. 6 has been negotiated with Anchor Environmental. The scope of work includes all construction management and inspection services during the waterline construction contract. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. c. GIS -based Public Works Infrastructure Inventory Area 5 Consultant Agreement with Perteet Engineering. Councilmember Griffin indicated this item was discussed at the Utilities Committee meeting on October 20, 2008. The committee members were unanimous in recommending approval. The City is performing a multi phased inventory that will map all City -owned storm facilities and survey monuments throughout the City. The fifth area will encompass portions of the City on the east side of 1 -5. Perteet Engineering, Inc. completed the first four areas with satisfactory results. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. d. Contract for legal services for 2009 -2010 with Kenyon Disend. Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee meeting on October 21, 2008. The committee members were unanimous in recommending approval. This has been an annual contract in the past, and the changes include the duration of the agreement, a 4% annual inflator in the flat fee, and an increase in hourly rates for attorney and support staff at the firm. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. e. Contract for lobbying services for 2009 with M.J. Durkan, Inc. Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee meeting on October 21, 2008. The committee members were unanimous in recommending approval. This is an annual contract, with the only change from the current agreement being the duration dates (January 1, 2009 December 31, 2009). Rhonda Berry, City Administrator, indicated the Finance and Safety Committee meeting members expressed a desire for an update on the General Election and the effect it might have on the City of Tukwila. Ms. Berry stated Mr. Durkan indicated he would coordinate a schedule to provide an update on the elections prior to the end of the year. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. City of Tukwila Page 6 of 7 City Council Committee of the Whole Minutes October 27. 2008 f. Contract for lobbying services for 2009 with Ball Janik. Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee meeting on October 21, 2008. The committee members were unanimous in recommending approval. This is an annual contract, and the only change from the current agreement is the date from 2008 to 2009. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. g. An ordinance amending the Council Procedures Ordinance. Councilmember Robertson indicated this was a New Business item from the October 20, 2008 Regular Meeting. The Council discussed the need to specify the rotation criteria for the Council President position. Establishing the criteria for rotation order will require an amendment to Ordinance 2024, as codified at Tukwila Municipal Code 2.04.070. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. 8:38 p.m. Council President Duffie declared a brief recess. 8:47 p.m. Council President Duffie reconvened the Committee of the Whole Meeting. h. Continued review of the 2009 -2010 Budget /CIP Shawn Hunstock, 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. REPORTS a. Mayor City Council Municipal Court Information Technology Finance Department Contingency Fund 105 Insurance Fund Insurance LEOFF I Fund 503 Firemen's Pension Fund BUDGET PAGES 27 -29 55 -58 51 -54 63 -65 151 185 186 187 CIP PAGES Mayor Haggerton attended the Cascade Water Alliance Executive Committee meeting on October 23, 2008 with the Auburn Chamber of Commerce. On October 23, 2008 he attended the Westfield business meeting and Joint Planning Commission /City Council Meeting. City of Tukwila Page 7 of 7 City Council Committee of the Whole Minutes October 27. 2008 b. City Council Councilmember Hernandez attended the ribbon cutting at Ben Bridge Jewelers' on October 16, 2008. She also attended the Latino Parent Night at Showalter Middle School on October 21, 2008. On October 23, 2008, she attended the Joint Planning Commission /City Council Meeting. Councilmember Griffin indicated on October 25, 2008 she assisted in the shrub planting in the buffer zone at Tukwila Pond with her Girl Scout Service Unit. Councilmember Hougardy attended the Highway 99 Action Committee Meeting on October 14, 2008 and the Latino Parent Night at Showalter Middle School on October 21, 2008. Council President Duffle indicated Tukwila Elementary School has been listed at Number 5 out of 100 schools in the State of Washington that passed the WASL test. c. Staff There was no report. d. City Attorney The City Attorney's presence is not required at Committee of the Whole meetings. e. Intergovernmental There was no report. MISCELLANEOUS Rhonda Berry, City Administrator, reminded Councilmembers of the Wellness Committee's Greater Tater Potluck on Thursday, October 30, 2008. Everyone is invited as this is the biggest and best potluck of the year. ADJOURNMENT 9:59 p.m. COUNCIL PRESIDENT DUFFIE DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED. 6,4 s Cc n cil Presidenl3 U -JtIvo-s>„ Melissa Hart, Deputy City Clerk