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HomeMy WebLinkAbout2008-11-24 Committee of the Whole MinutesCALL TO ORDER /PLEDGE OF ALLEGIANCE TUKWILA CITY COUNCIL November 24, 2008 7:00 p.m. Council Chambers City Hall COMMITTEE OF THE WHOLE Executive Session 6:30 to 7:00 p.m. Personnel Issue; Pursuant to RCW 42.30.110(1)(g) Executive Session Start: 6:33 p.m. Executive Session End: 6:54 p.m. Council President Duffie called the Tukwila City Council meeting to order at 7:02 p.m. and led the audience in the Pledge of Allegiance. Council President Duffle 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, De'Sean Quinn. CITY OFFICIALS Jim Haggerton, Mayor; Rhonda Berry, City Administrator; Bob Giberson, City Engineer; Gail Labanara, Public Works Analyst; Jack Pace, Community Development Director; Bruce Fletcher, Parks and Recreation Director; Rick Still, Parks and Recreation Deputy Director; Nick Olivas, Fire Chief; Derek Speck, Economic Development Administrator; Katherine Kertzman, Tourism Program Manager; Shawn Hunstock, Finance Director; Lisa Verner, Project Manager; Evelyn Boykan, Human Services Manager; Stacy Hansen, Human Services Specialist; Viki Jessop, Administrative Services Director; Stephanie Brown, Personnel Analyst; Melissa Hart, Deputy City Clerk. SPECIAL PRESENTATIONS a. A proclamation designating "Buy and Celebrate Locally Day" in Tukwila. Mayor Haggerton read a proclamation, in its entirety, declaring November 28, 2008 as "Buy and Celebrate Locally Day" in the City of Tukwila. He presented the proclamation to Barbara McMichael, Administrator of the South King County Cultural Coalition (SoCo Culture). Ms. McMichael thanked the Mayor and Council for participating in the celebration. b. Election results update, Martin J. Durkan, City Lobbyist. Martin Durkan distributed an overview of the 2008 -2009 Washington State Legislative Review. Mr. Durkan indicated a major item of legislative action occurred in a special session in November 2008 that reinstated the 1% property tax levy lid contained in 1 -747. With current media focusing on incidents at Westfield Southcenter on November 22, 2008, the subject of gang activity will be a focus item in 2009. Key points of legislation that can affect the City included: ESHB 2687 Criminal Street Gangs. Supplemental appropriations bill included one million dollars to law enforcement and new rules to fight street gang activity. E2SHB 2712 Sex Offender Address Verification. This includes five million dollars for local law enforcement for in- person verification of sex offenders' addresses. ESSB 6580 Climate change. The original bill was scaled back to ensure no new mandates to cities. CTED will collect the information on how cities are addressing climate change. City of Tukwila Page 2 of 11 City Council Committee of the Whole Minutes November 24. 2008 HB3292 Taping of Executive Sessions. This was defeated previously but is expected to resurface next session. E3SHB Wrongful Death. This was also defeated during the 2008 session by a very close vote in the Senate but should also resurface next session. Mr. Durkan stated the 2009 legislative session will be one of cutting budgets across the spectrum due to the budget short falls, at the State level, and the possibility of shifting costs to local governments. It is imperative the City continue to work closely with the Association of Washington Cities to stop unfunded mandates and cost shifting. It is expected the State will develop an economic job stimulus package in coordination with the federal government. Projects that are ready to go will have a significant advantage for funding in the 2009 session, such as Tukwila Village and the commuter station project. A partnership between the Governor and new Presidential administration with a jobs program and economic plans can be expected. Councilmember Hernandez indicated one main concern regarding State budget cuts is the mitigation fund for the streamlined sales tax. She would like Mr. Durkan to continue lobbying to retain the mitigation fund. Mr. Durkan indicated cutting the mitigation fund is not on the table as of right now. The plan sponsor had made a commitment to the cities for these funds. Councilmember Hernandez also inquired as to whether the $4 million to extend Southcenter Parkway is still available. Mr. Durkan indicated those monies are still slated for Tukwila projects. Mayor Haggerton indicated it was stated in a meeting with the Transportation Secretary the City is protected on the monies for the Southcenter Parkway, Klickitat, and Tukwila International Boulevard Phase 2 and 3 projects. Councilmember Linder inquired about the federal grants the City received, and asked whether the City can apply for additional grants if those funds have not been used yet. Mr. Durkan stated the City would need to use the current grants prior to applying for additional funding. Councilmember Robertson inquired about the status of the Communities Renewal Act (HB 2921). Mr. Durkan indicated the original legislation did not pass, and he believes another type of legislation similar to the original House bill will come forward again in the 2009 legislative session. Mr. Durkan stated he has been working with the Association of Washington Cities regarding this item. One issue with this piece of legislation is condemnation of private property and the protests quite a few groups have on this issue. Councilmember Griffin indicated she is looking forward to working with Mr. Durkan on the legislative agenda process and thanked him for the update. Councilmember Quinn inquired about the flexibility of Real Estate Excise Tax (REET) funds and allowable uses. Mr. Quinn stated funding for Tukwila's parks and open space is a continual problem and asked if the legislature intended to work on that. Mr. Durkan stated the REET funding is declining, as are the rules governing the REET restrictions on where the City can use those funds. The Association of Washington Cities (AWC) is developing legislation to allow more flexibility on how the City can spend the money, and he expects to see it soon. Mr. Durkan will follow up with AWC and provide status to the Council on this topic. Mayor Haggerton stated the AWC board of directors indicated at a meeting on November 20 and 21 St they are working is to free up the REET allocation restrictions and allow the second 1 /4 percent the same flexibility as the first, as to how the City can use those funds. CITIZEN COMMENT Council President Duffie indicated he has received numerous comments regarding the outstanding response of all persons involved in the incident on November 22, 2008 at Southcenter Mall. Councilmembers expressed their sincere appreciation to the Police Department, Fire Department, and neighboring jurisdictions that responded to the incident. City of Tukwila Page 3 of 11 City Council Committee of the Whole Minutes November 24. 2008 Council President Duffle asked Councilmember Linder to read an e -mail she addressed to Mayor Haggerton detailing the exceptional response relating to this incident. Ms. Linder read the following: "Mayor Haggerton, I wanted you to let the appropriate staff know how I felt. Each time I saw or heard Officer Murphy respond to the questions about the shooting at the mall I was very impressed and grateful. He handled a difficult situation professionally and so courteously. I realize he is limited to what information he could release without jeopardizing the case. With circumstances changing so fast and so much going on at one time, he maintained a calm and succinct message to the media under immense pressure. The City of Tukwila was seen in the best possible light in a very gray situation. Please thank our heroic responders, the coordination with Fire and Police and our neighboring cities is to be commended." Robert Jensen, 11682 44 Avenue South, expressed his appreciation to all the first responders, Tukwila's Police and Fire and our neighboring cities' responders. Mr. Jensen inquired about the City's gang policies, and if the Tukwila Police Department knows of any gangs in the Tukwila area. Mr. Jensen also requested clarification on reports that Westfield management has requested additional police officers patrolling the mall and whether the officers providing this service would be pulled from active patrol. Rhonda Berry, City Administrator, indicated the City has a contract with Westfield Southcenter, and the contract has a fee structure to pay for police presence in the mall. The officers patrolling the mall are off duty; the City does not pull officers from patrols. Ms. Berry indicated the City is fortunate to have the neighboring cities available to assist if an emergency occurs. The City of Tukwila's gang policy is that the City does not tolerate crime. The City is putting all available resources toward stopping criminal activity. Sharon Kidd, 4242 South 146 expressed appreciation for the staff and personnel who responded to the incident at Southcenter on November 22, 2008. Ms. Kidd indicated she is representing the Human Services Board, and she wanted to thank the Council for not eliminating the Human Services Program from the budget. If additional monies are available, the Human Services Program could benefit from the additional funds. Mayor Haggerton indicated he would like to thank Councilmember Linder for her e -mail regarding the City's response to the incident on November 22, 2008. The Mayor's Office has received e -mails and comments from local cities and from a person in Denver, Colorado, acknowledging the quick response by the Tukwila Police Department. The statements by Officer Mike Murphy were very professional, considering the urgency of the situation. PUBLIC HEARING a. An ordinance establishing residential and non residential development impact fees as part of the financing for public facilities for Fire and Parks Councilmember Griffin requested Lisa Verner, Project Manager, outline the process the City has taken to reach the public hearing stage of impact fees. Ms. Verner indicated the foundation for discussion began in the summer of 2008 after the Parks and Open Space Plan ordinance was adopted. Ms. Verner indicated the ordinance required an amendment to include a capital facility project list that requires funding based on future growth and adding the Levels -of- Service Standards. The draft ordinances have been reviewed by the Finance and Safety and Community Affairs and Parks Committees. One of the requirements of the ordinance is to hold a public hearing, which is being held this evening. Councilmember Linder inquired how the City would amend an impact fee ordinance. Ms. Verner indicated it is recommended the City review the capital facilities project list annually when reviewing the budget. 7:52 p.m. Council President Duffie opened the public hearing. City of Tukwila Page 4 of 11 City Council Committee of the Whole Minutes November 24. 2008 Lisa Verner, Project Manager, indicated the Council has two ordinances before them, one for Fire impact fees and the second for Parks impact fees. In the information provided, staff has prepared spreadsheets with sample fee formulas for the fee split. The City is basing the model of the ordinance on the City of Redmond's impact fee schedules. Per RCW 82.02.050 (4) impact fees can only be spent on capital facilities that are indicated in the capital facilities element of the Comprehensive Plan. The administration is proposing that both Fire and Parks impact fees be collected from new development through the issuing of building permits. Ms. Verner stated there is one change in the Fire capital facilities list. Attachment A, item number one, should say, "Construct and build relocated Station 51 and a 5,000 square foot addition due to growth, and the cost estimate be reduced from $10 million to $2 million." George Rockwell, 300 Upland Drive, requested his e -mail opposing impact fees be made part of the public record. Mr. Rockwell indicated his company is in the process of developing a parcel of land off Minkler Avenue. Due to the current state of the economy, the proposed additional fees seem unreasonable. The addition of impact fees would cause the termination of the proposed project. Mike Hansen, 12201 Tukwila International Blvd, representing Sabey Corporation, indicated the information provided by staff has been drastically changed, without any clear explanation provided. With the current changes, the constituents of Tukwila have not had an opportunity -nor has the Council had the opportunity -to study the figures and costs associated with a developer doing business in Tukwila. Mr. Hansen indicated they are very interested in this issue. Implementing impact fees will have an impact on the future development of Tukwila, and the Sabey Corporation realizes City services require funding, but more specific explanations and details from staff on percentages and the funding split would assist with constituent support. Louise Strander, P.O. Box 88636, indicated with growth and changes in the City, Fire impact fees are one way of funding Fire Facilities. Ms. Strander explained she supports Fire impact fees that are proportionate and fair. Due to economic conditions, the issue regarding Park impact fees should be revisited at a later time. Mark Segale, P.O. Box 88028, stated that Segale Properties does not oppose impact fess, and would like the City Council to consider the increased costs by businesses in Tukwila should this ordinance be adopted. At the recent AWC meeting, it was stated cities should provide incentives to draw in business and not assess high impact fees. The main question for consideration before the Council is what incentives Tukwila offers compared with neighboring cities. Mr. Segale indicated additional information was provided to the Community Affairs and Parks Committee members and guests this evening. He feels the speculation as to the amount of hours parks are used by employees in Tukwila and the calculations provided are too high. The City also needs to think of operations and maintenance costs associated with new parks and facilities. Mr. Segale stated there should be language in the ordinance that if an existing building is demolished and redevelopment of the property is achieved, the developer should be entitled to a credit associated with the redevelopment. Joe Desimone, 5609 SW Manning Street, conveyed he is representing a family trust located in Tukwila. Mr. Desimone stated his family is not opposed to impact fees for services such as Fire and agrees with statements of previous citizens. Mr. Desimone indicated the City needs to have evidence of workers /employees who actually use the City's parks before a basis for calculating the impact fees can be determined. It is apparent that some agencies, like King County, build facilities without the realization they must pay to operate and maintain them forever. Building a capital facility with collected development fees will not pay for the operations and maintenance of that facility. He inquired as to how that will be funded. The revised information provided this evening at the Community Affairs and Parks meeting showed a change in dollar amounts and project totals, without sufficient explanation. Information that is provided to full Council regarding fees paid by the residents should have sustainable data to back up the figures. Mr. Desimone also indicated the City should better inform the public of hearings and meetings that have an effect on personal property. Robert Jensen, 11682 44 Avenue South, inquired about the location of Fire Station 51. Ms. Verner indicated Fire Station 51 is located on Andover Park East, and is the Fire Department headquarters. Additional information from staff indicated Station 51 is in need of an additional 5,000 square feet. The list of projects presented this evening to the Community Affairs and Parks Committee included the revised list of projects and prices stemming from additional staff research. City of Tukwila Page 5 of 11 City Council Committee of the Whole Minutes November 24, 2008 8:23 p.m. Council President Duffie closed the public hearing. SPECIAL ISSUES a. Impact Fee ordinances for Fire and Parks Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee on November 18, 2008. Mr. Robertson thanked staff for the research conducted to aid in making a complex subject more understandable. There are four items on the table for Council consideration: 1) Should the City impose impact fees; 2) What list of projects should be funded by impact fees; 3) What should the split of fees be (there is no guidance from the state); 4) Is the proposed split fair to all parties responsible for said impact fees (single family, multi family, office, retail, industrial.) The Councilmembers requested the Fire impact fee and Park impact fee discussion take place separately. The first discussion was on Fire impact fees only. Councilmember Linder asked staff to explain why the City would want to impose Fire impact fees, and what the consequences would be if the City did not adopt impact fees. Lisa Verner indicated impact fees are a one -time fee to offset the cost of additional services associated with new development. Impact fees are intended to supplement other funding sources, and State law requires the fees to be spent on the facilities for which they are collected. Ms. Verner explained impact fees are charged to the developer as part of the permit process and typically pass invisibly from the builder to the consumer. Ms. Verner noted the City is experiencing budgetary issues and the Mayor has requested investigation of additional revenue sources. Impact fees are allowed under the Growth Management Act, with the condition of planning for 20 -year growth. To calculate the actual fee associated with Fire impact fees, staff gathered the actual number of documented calls (historical data) for 2007 and separated them by category, for example aid calls for single family or retail uses and fire response to retail or industrial uses, etc. Rhonda Berry, City Administrator, provided clarification regarding a statement pertaining to how the City would pay for operations and maintenance associated with the new facilities. Ms. Berry indicated the increase in revenue (property and sales tax) received from the new development would pay for the operations and maintenance costs. It is the City's view the new development would pay for capital facilities through impact fees, and the operations and maintenance costs would come from additional tax collected, all due to the new projected growth. Shawn Hunstock, Finance Director, concurred with the statements made by the City Administrator. The additional property and sales tax collected from the new development would be beneficial to the City. Councilmember Linder inquired about the consequences of not adopting impact fees. Currently the City pays for capital facility projects from the incremental revenue from property and sales tax. Operations and maintenance are also paid from those funds. Mr. Hunstock indicated it takes longer for the City to acquire the necessary funds to purchase space for a new park or a new facility. Impact fees are one of the sources municipalities use to pay for capital facilities due to new growth. Councilmember Robertson indicated he is in favor of adopting impact fees for Fire. 1 -747 severely affects the property tax revenues for the City. The implementation of Fire impact fees would support the new growth and continue the level of services that are being provided. As the incident on Saturday, November 22, 2008 at Westfield Southcenter proved, not only the residents of Tukwila, but also people visiting the City use our emergency response services. The current levels -of- service standards are not based solely on residential population, but also include the business community. Councilmember Hernandez indicated she is in support of a Fire impact fee, and calculating the actual amount is difficult. As the Mayor has previously indicated, payment for new growth capital facilities is currently paid for from the General Fund. It is evident the addition of new development along Southcenter Parkway has increased the need for City services. City of Tukwila Page 6 of 11 City Council Committee of the Whole Minutes November 24. 2008 Since the City uses the General Fund to support those services, the burden is placed on the residents to pay for all the services, and the businesses are receiving services at no cost. The Council and Administration should review the formulas and calculations to ensure an equitable distribution, that would not discourage growth between residents and businesses. Councilmember Linder indicated the City recently adopted levels -of- service standards. The addition of new capital facilities requires funding, and if the City did not add facilities, our levels of service would be lowered, and that would discourage economic growth. Nick Olivas, Fire Chief, indicated lowering the level -of- service standard is not advisable. The affected population has excellent people taking care of them, as was evident on November 22, 2008, with the tragic situation at Westfield Southcenter. With the resources the City has available, the level of service currently in place is outstanding. A decrease to the levels -of- service standards would not be beneficial to the City as a whole. Councilmember Linder indicated she also agrees with Councilmember Hernandez and is in support of a Fire impact fee. Councilmember Hougardy indicated she is in favor of Fire impact fees, and it is apparent the City missed an opportunity to collect these fees with previous development. The implementation of impact fees should be equitable to all involved in paying the fee. Councilmember Quinn indicated the City did miss an opportunity to collect impact fees in the past. Mr. Quinn expressed his appreciation for the public involvement during the public hearing earlier this evening, and their concerns on the assessment of impact fees. The Council has a fiduciary responsibility to the citizens of Tukwila who are bearing the burden of paying for providing these services to Tukwila as a whole. Fire and public safety are two areas that cannot be compromised. Mayor Haggerton indicated this item is a potential revenue source available to the City. The current budget does not support taking money from the operations section to pay for capital facilities; the money is just not there. Councilmember Robertson requested clarification from staff as to why there is a reduction in project costs associated with Fire Station 51. Chief Olivas indicated Mr. Segale inquired about the necessity to relocate Station 51 at the November 18, 2008 Finance and Safety Committee meeting. Due to that question, staff and administration revisited the plans for Station 51 and arrived at a lower project cost. Councilmember Robertson indicated the change to the capital list of projects is agreeable, and it is important to mention that Station 51 is the Fire Department headquarters. He also provided clarification regarding the 5,000 square foot addition to Station 51, which is for an additional bay for the ladder truck. As the City grows, that growth should pay for itself. Chief Olivas indicated the revised list for capital projects is due to growth that is anticipated in the central business district. This does not include any future growth to the south end of the City. Councilmember Robertson indicated the proposal of purchasing an additional engine for Fire Station 54 to replace the ladder truck that will be relocated to Fire Station 51 is acceptable. Chief Olivas clarified the Fire Master Plan has not been adopted as of yet, and administrative decisions will be required after the Council approves and adopts the ordinance. It is the intention of the Fire Master Plan to add an additional aid car one to service the north end of the City and one for the south end of the City. The plan will be difficult to accomplish due to the addition of staff that is required to staff a new aid car. This is something the Fire Department and City Administration have been working on. Chief Olivas indicated Tukwila's aid calls are 70 to 80 percent of all the calls received, and one main point of the Fire Master Plan is to put an additional aid car in service. Councilmember Linder indicated state requirements pertaining to the implementation of impact fees clearly states the projects eligible for funding are new facilities due to growth. She asked for clarification on the basis for the proposed list of capital facility projects. City of Tukwila Page 7 of 11 City Council Committee of the Whole Minutes November 24. 2008 Chief Olivas indicated the facilities proposed are based on the current levels -of- service standard and the desire to maintain the same level even with new growth. Anticipated growth is the driving force behind the proposed capital facility projects. Ms. Verner explained if Station 51 is relocated due to growth, the Council and Administration will need to review the possible relocation of Station 52. The relocation of both of the fire stations is based on anticipated growth. If a project listed does not come to fruition, the fees that had been collected will be refunded to the developer. Lisa Verner reminded the Council that one requirement of impact fees is the projects must commence within six years. Council consensus existed to move onto the discussion of Parks impact fees. Councilmember Robertson indicated one key issue regarding Parks impact fees is the fact that all of the parks listed are regional. Parks in the north end of the City would not be beneficial to residents in the south end of the City. Tukwila Pond is clearly a regional park as it is being designed; it is not a neighborhood park. The Tukwila pool was built with King County funds, and the County did not budget maintenance of the facility, which is why the City is now operating the pool. The pool is not limited to the residents; it is a regional facility used by many. He indicated the proposed boat launch is also a regional item; the river is also used by people throughout the region. It was stated at the Water Resource Inventory Area 9 meeting regarding the Duwamish, that the river does not exist in piece -by -piece sections. It is an eco- system of its own. The pedestrian bridge will connect the Sounder train station with the Tukwila Urban Center, which is a regional connector for foot traffic. All of the facilities listed are regional and make sense; being regional, they benefit the businesses and residents of the region. Mr. Robertson indicated he would like clarification on the Southgate Park addition, which is a neighborhood park and should not be listed with facilities for impact fee funding. Councilmember Hernandez indicated the Community Affairs and Parks Committee did not discuss each item on the list, and the specified projects are listed in the Capital Improvement Program. If new facilities are not funded with impact fees, the City cannot afford to increase the parks and open space available to the residents, which will ultimately result in overcrowded parks. Providing the residents with parks and facilities is the basis for including them in impact fee funding. Rick Still, Parks and Recreation Deputy Director, indicated the expansion of Southgate Park would increase the open space for the regional parks. Currently there is adjacent property for sale that would increase the park size, and that is the reason for adding this particular project to the list. The addition of the available land would add trail connectors from Tukwila International Boulevard down to Interurban Avenue. The addition of the open space would make the park more accessible to the residents of Tukwila. Councilmember Griffin indicated the discussion this evening has alleviated some of the apprehension she had regarding the total amount of the projects. She appreciated the opportunity for the committees to review the information again. Ms. Griffin indicated staff should prepare to provide explanations on the split of funding for the next round of reviews. Councilmember Hougardy relayed the total amount of the projects is very large and looks forward to the additional discussion during committee. The Impact Fee Audit Report from the Washington State Auditor's office provides excellent data and options. The City of Olympia did a phone survey, and the Parks and Recreation Department should consider some type of survey to gather the data to back up the figures. Councilmember Quinn indicated the proposed list of park projects is regional. One item for research would be the sustainability of the figures and calculations. Councilmember Linder asked if additional growth and the collection of additional property and sales tax in the Tukwila Urban Center would sustain the operations and maintenance of the proposed park facilities. Lisa Verner answered in the affirmative. City of Tukwila Page 8 of 11 City Council Committee of the Whole Minutes November 24. 2008 Councilmember Quinn requested staff explain why the boat launch project is important and why it should not be removed from the list of projects funded by impact fees. Rick Still indicated the Parks and Recreation Department has received many requests for boat launches, as there is no location in the City that provides river access for boaters. The boat launches add public access to the shoreline of the river. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM BACK TO THE FINANCE AND SAFETY COMMITTEE AND COMMUNITY AFFAIRS AND PARKS COMMITTEE. 9:34 p.m. Council President Duffie declared a recess. 9:41 p.m. Council President Duffie reconvened the Committee of the Whole Meeting. b. Sound Transit street vacation ordinance. Councilmember Linder indicated this item was discussed at the Transportation Committee on November 12, 2008. The committee members were unanimous in recommending approval. Bob Giberson, City Engineer, indicated the ordinance will extend the expiration date for the Sound Transit street vacation located at 35 Avenue South (the Tukwila International Boulevard Station) to April 30, 2009. Conditions have been met for two other street vacations on 48 and 49 Avenue South, and they will be recorded with King County. The conditions on the remaining four street vacations cannot be satisfied and are, therefore, null and void as they expired on April 30, 2008. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. c. Department of Community Development fee increases. Councilmember Hernandez indicated this item was discussed at the Community Affairs and Parks Committee meeting on November 10, 2008. The committee members were unanimous in recommending approval. The Council is being asked to consider (1) An ordinance increasing Planning Fees, and (2) A resolution increasing Land Use fees, commencing January 1, 2009. Planning Fees: In 2007, the issue of a fee increase was brought to the Council and approval was granted to increase the permit fees by 4% for 2008. This was the first increase since the 2003 adoption of the International Codes. The Department of Community Development will be implementing internet access for the application and issuance of certain permits that currently can be issued "across the counter." The intent is to increase efficiency of the building permit process and eliminate the current turn around time for these permits. This system will be a key component of code administration, and therefore the costs should be recovered by the permit fees. Land Use Fees: Staff is seeking Council approval to implement an annual increase in Land Use Fees (minimum of 5% each year) during the 2009 -2010 biennial budget cycle, as well as begin charging a fee for annexations and development agreements. Councilmember Robertson requested clarification of the actual recovery rate for permit fees the City is receiving. Jack Pace, Community Development Director, indicated the City does not recover fees for structural plan review and electrical review fees. With this increase, the City could start recovering fees associated with certain permits and plan reviews. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. d. An Interlocal Agreement to provide tourism and marketing services to the City of Des Moines. Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee on November 18, 2008. The committee members were unanimous in recommending approval. City of Tukwila Page 9 of 11 City Council Committee of the Whole Minutes November 24. 2008 Katherine Kertzman, Tourism and Marketing Manager, indicated Tukwila entered into an Inter local Agreement with the City of Des Moines in 2005 for tourism promotion services. The new Interlocal Agreement is an extension of the original agreement with the City of Des Moines, committing 100% of their lodging tax revenue estimated to be $20,000 annually. The term of the new Interlocal Agreement is for one year, commencing January 1, 2009 and shall renew annually unless terminated for cause. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. e. A resolution regarding non represented employees' wage schedule. Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee on November 18, 2008. The committee members were unanimous in recommending approval. Viki Jessop, Administrative Services Director, explained staff is requesting adoption of a resolution that includes recommendations for non represented employees' wages and benefits for 2009. In a departure from a wage increase based on a percentage of the CPI -W, the Mayor is recommending the following compensation package for the non represented employees for 2009: A flat rate of 4.5% increase to the non represented wages, effective January 1, 2009 Updated benefits schedule Implementation of a longevity schedule, effective January 1, 2009. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. f. Eden System Licensing Proposal. Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee on November 18, 2008. The committee members were unanimous in recommending approval. There is a need for a site license for Eden Financial Systems, which will allow for unlimited users of Eden. The benefits of a site license include the ability for each department to manage their budgets in a timely basis, electronic routing of purchase orders for approval, as well as the addition of other modules, such as the new HR system, with no need to pay for additional individual user licenses. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. g. Final 2008 Budget Amendment. Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee on November 18, 2008. The committee members were unanimous in recommending approval. Shawn Hunstock, Finance Director, indicated that at the end of each year the Finance Department assesses the actual financial performance of the City compared to the adopted budget. As part of this annual analysis, staff is proposing an amendment to the 2008 Budget. The amendment calls for the reallocation of unspent appropriations to budgets with potential deficits. The budgets to be increased are the Finance Department, related to unbudgeted claims and judgments of $299,000; and Legal, related to unexpected legal representation, prosecutorial and other expenses of $340,000. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. h. Proposed Budget /Capital Improvement Program. Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee on November 18, 2008. The committee members were unanimous in recommending approval. The Council is being asked to consider (1) An ordinance adopting the 2009 -2010 Biennial Budget, and (2) A resolution adopting the 2009 -2014 Capital improvement Program. City of Tukwila Page 10 of 11 City Council Committee of the Whole Minutes November 24 2008 Council reviewed the budget at four Council meetings in October and November and conducted the public hearing on November 17, 2008. Shawn Hunstock, Finance Director, indicated a new proposed budget allocation to the Community Schools Collaboration organization in which the City will pay $130,000 in a cash contribution and the Parks and Recreation Department will no longer provide in -kind services. There will be a contract for services with Community Schools Collaboration that includes language to ensure the quality of services to the children remains at a high level. Mayor Haggerton indicated the change in the agreement with Community Schools Collaboration came about after receiving the full financial statement and latest audit. The effects of this change will be beneficial to the City and the program. With a direct cash contribution, the organization is able to provide direct oversight of the program with staff of their choosing. The City will no longer hire the seven temporary workers to provide the in -kind services. The City Administration will monitor the contract to ensure the quality of service that is provided stays at the current high level. The Councilmembers continued the discussion about the program and the services that the Community Schools Collaboration provides, and the Human Services programs the City currently offers. Councilmember Linder indicated if inflation had been applied to the Human Services Department, their budget would be greater than what it is today. She is requesting the budget for Human Services be increased by $50,000 in 2009 and again in 2010. Ms. Linder indicated the Council represents the citizens, and during these tough economic times, the citizens need these services more than ever. Councilmember Quinn indicated he agrees with Councilmember Linder's request, and suggested the additional $50,000 be put into a contingency fund that Human Services could review and apply the funds where they see an increase is needed. Councilmember Quinn requested Evelyn Boykan, Human Services Manager, provide input on the issue before the Council. Ms. Boykan indicated Human Services ran out of their emergency fund in October 2008. Most of the government agencies and non profits are out of funds now. Allocating the additional funding in a contingency fund would not make those funds readily available. With the funding cuts in King County, the additional funds could be better utilized if available immediately rather than in a contingency fund. Rhonda Berry, City Administrator, indicated Ball Janik, the City's Washington D.C. lobbyist, has encouraged the City to look beyond the infrastructure and capital funding when planning the federal agenda for the 2009 session. They have also been asked to look for funding available in the areas of human services and other programs. Ball Janik has the first hand knowledge about what funding is available. Human Services can be added to the list of items for discussion at the upcoming 2009 legislative agenda meeting. Ms. Berry indicated the Council Analyst has been invited to attend the meeting. Any ideas are welcomed, and Ms. Matej could provide items the Council would like to have added. Councilmember Hernandez indicated the state of the economy and human services funding was discussed during an Association of Washington Cities meeting. The majority of cities are having the same issues with finding additional funding to help the citizens. She requested a review of the ending fund balance each year, and the possibility of applying a small percentage of that balance to the Human Services budget. The amount would not be known until the review, and the budget would be increased a small amount each year. Councilmember Robertson indicated he is in support of the addition of $50,000 to the Human Services budget. Tukwila is very fortunate that the sales tax reports are still close to target. If the economic downturn continues, the additional funding will require a second review. COUNCIL CONSENSUS EXISTED TO CONTINUE THE BUDGET DISCUSSION AT THE NEXT REGULAR MEETING. COUNCIL CONSENSUS EXISTED TO CONTINUE THE MEETING FIFTEEN MINUTES TO FINISH ITEM 5i. City of Tukwila Page 11 of 11 City Council Committee of the Whole Minutes November 24. 2008 i. Refunding of 1999 Bond Issue. Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee on November 18, 2008. The committee members were unanimous in recommending approval. The City has an opportunity to save $60,557.48 on debt service during the 2009 -2010 biennium by refunding the 1999 bond issue. The potential savings over the entire ten years remaining on the bond issue is $326,048.68. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. Due to the lateness of the hour, agenda item J will be discussed at the next Regular Meeting, and the Council dispensed with reports. ADJOURNMENT 11:09 p.m. COUNCIL PRESIDENT DUFFIE DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED. 1 f fie, â–ºouncil Presid Melissa Hart, Deputy City Clerk