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HomeMy WebLinkAboutFS 2009-02-03 COMPLETE AGENDA PACKET Distribution: City of Tukwila P. Linder S. Hunstock J. Pace J. Finance and Safe D Duffle Quinn V. Hart D. Speck D V. Jessop R. Still J. Hemandez S. Kerslake D. Tomaso Committee D. Robertson T. Kinlow Judge Walden Mayor Haggerton K. Matej B. Arthur O Pam Linder, Chair R. Berry M. Miotke C. Parrish E C. O'Flaherty J. Morrow K. Narog(cover) O Joe Duffle B. Fletcher G. Labanara S. Kirby(email) O De'Sean Quinn D. Haynes N. Olivas S. Norris(emaiq AGENDA TUESDAY FEBRUARY 3, 2009 CONFERENCE ROOM #3; 5:00 PM Item Action to be Taken Page 1. PRESENTATIONS 2. BUSINESS AGENDA a. Amendments to Gambling Tax Ordinance a. Forward to 2/23 C.O.W. Pg.1 regarding charitable and non profit organizations; and 3/2 Regular. Evelyn Boykan, Human Services Manager. b. Records Storage Facility Lease; b. Forward to 2/23 C.O.W. Pg.7 Jim Morrow, Public Works Director. and 3/2 Regular. c. City Use of Armored Car Services; c. Consideration. Pg.13 Shawn Hunstock, Finance Director. 3. ANNOUNCEMENTS 4. MISCELLANEOUS Next Scheduled Meeting: Wednesday (Monday is a holiday), February 18, 2009 The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206 433 -1800 for assistance. City of Tukwila Jim Hagget1on, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Evie Boykan, Human Services Manager DATE: January 22, 2009 SUBJECT: Amendments to Gambling Tax Ordinance #2150 ISSUE The proposed amendments waiving the gambling tax for charitable and nonprofit organizations create more clarity around eligible non-profits and state definition of charitable non-profits. BACKGROUND In 2007, Council approved ordinance 2150, waiving the gambling tax for charitable and nonprofit organizations. The Seattle Jaycees, one of the charitable organizations, established an application process for non profits delivering services to the Tukwila community. DISCUSSION The current language identifies charitable nonprofit organizations located in the City whose purpose is to provide programs or facilities for meeting the basic health, education, welfare or other needs of the residents of the City. Since several recipients of the grants are providers of services in Tukwila, but are not located in Tukwila, clarifying language could offer more inclusivity for those non profits that are serving our population but not located in the city. This expansion would provide a greater pool of applicants for the Jaycees to choose from. Reportedly, there were quarters in 2008 that had inadequate numbers of applicants. Upon City Attorney review, the City's code should be further amended to add references to RCW 9.46.0209, the state legislature's definition of the term "charitable non-profit organization" since the City's code does not reference this in TMC 3.08.030. See attached memo from Assistant City Attorney Kari Sand. RECOMMENDATION The Committee is being asked to forward this item for consideration at the February 9, 2009 Committee of the Whole Meeting and subsequent February 17, 2009 Regular Meeting. ATTACHMENTS Email from Kari Sand, City Attorney's Office, dated 1/2/09 Draft Ordinance with identified changes 2007 -2008 Grant Recipient List W:\2009 InfoMemos\lnfoMemoJaycees2.doc . (01/21/2009) Evelyn Boykan - Re: Gambling Tax Amendment Page 1 From: To: Date: Subject: Attachments: "Kari Sand" <KARI@kenyondisend.com> "Evelyn Boykan" <eboykan@ci.tukwila.wa.us> 01/21/20093:43 PM Re: Gambling Tax Amendment Ord - Gambling Tax - Waiver for Nonprofits.doc cc: Hi, Evie- "Shelley Kerslake" <skerslake@cLtukwila.wa.us> Attached is a draft ordinance reflecting the code amendments recommended to expand non-profit organizations eligible to receive gambling tax revenues to those located outside the city provided they "serve" residents of the City, instead of only those inside the City. Thus, a wider pool of non-profits will be eligible to receive the gambling tax revenues. Please also note that the City's code should be further amended to add references to RCW 9.46.0209, the state legislature's definition of the term "charitable non-profit organization," since the City's code does not otherwise define the term even though the code states that such term is "as defined in TMC Chapter 3.08" and "as defined in TMC 3.08.030." Based on my review, the term "charitable non-profit organization" is not actually defined anywhere in Chapter 3.08 TMC, so I recommend amending the City's code to add cross-references to the definition of a "charitable non-profit organization" found in the RCW. Please revise your "Information Memorandum" to delete the reference to Amy Pearsall who, as you know, is no longer with our firm and you can insert my name instead. Please feel free to call or e-mail me if you have any questions or require any further assistance with this. -Kari Kari L. Sand Kenyon Disend, PLLC The Municipal Law Firm 11 Front Street South Issaquah, Washington 98027 425/392-7090 - phone 425/392-7071 - fax Kari@KenyonDisend.com DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKvVILA, WASHINGTON; AMENDING TUKWILA MUNICIPAL CODE SECTION 3.08.030, "GAMBLING ACTIVITIES - TAX RATES," RELATED TO THE WAIVER OF GAMBLING TAX FOR BONA FIDE CHARITABLE AND NON-PROFIT ORGANIZATIONS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. vVHEREAS, the City desires to encourage charitable and non-profit organizations conducting certain gambling activities in Tukwila to donate to charitable, non-profit organizations serving the Tukwila community; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKvVILA, WASHINGTON, HEREBY ORDAL"l"S AS FOLLOWS: Section 1. TMC 3.08.030 Amended. Tukwila Municipal Code 3.08.030, "Gambling Activities - Tax Rates," is hereby amended to read as follows: 3.08.030 Tax Rates A. Pursuant to RCW 9.46.110 and RCVv 9.46.120, as amended by the Laws of Washington, effective July 27, 1997, there is levied upon all persons, associations and organizations who have been duly licensed by the Washington State Gambling Commission, as authorized by law, the following tax: 1. To conduct or operate any bingo games and raffles, a tax rate of 5% of the gross revenue received therefrom, less the actual amount paid by such person, association or organization for or as prizes; 2. To conduct any amusement game, a tax rate of 2% of the gross revenue received therefrom, less the actual amount paid by such person, association or organization for or as prizes; 3. For the conduct or operation of any punchboards or pulltabs, a tax rate of 5% of the gross receipts from such activities for commercial stimulant operators (taverns, restaurants, etc.); and a tax rate of 10% on the gross receipts less the amount paid out as prizes for charitable or nonprofit organizations; 4. For the conduct or operation of any premises or facility used to play social card games, a tax rate of 20% of the gross receipts received therefrom; 5. Any public card room operated as a commercial stimulant, a tax rate of 10% of the gross receipts received therefrom. B. Non-Profit Organizations. 1. No tax shall be imposed under the authority of TMC Chapter 3.08 on bingo or raffles when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in TMC Chaptcr 3.08, RCW 9.46.0209, which organization has no paid or management personnel, and has gross C:\Documents and Settings\All Users\Desktop\Kelly\MSDATA \Orclinances\Gambling Tax Rates.doc 1/27/2009 Page 1 of2 income from bingo and raffles, or any combination thereof, not exceeding $5,000 per year, less the amount paid for or as prizes. 2. The Finance Director may waive the tax due each quarter from a bona fide charitable or nonprofit organization as defined in TMC Chapter 3.08.030, ROV 9.46.0209. This waiver may occur only if the charitable or nonprofit organization demonstrates by clear and convincing documentation that an amount equal to at least 70% of the tax due the City, as computed pursuant to TMC 3.08.030, vvill be donated to charitable nonprofit organizations lOCD.tcd in serving the City whose purpose is to provide programs or facilities for meeting the basic health, education, welfare, or other needs of the residents of the City. Failure to donate at least 70% of the tax due the City will result in revocation of the waiver and the disqualification of the bona fide charitable or nonprofit organization to receive a waiver for future tax payments. Section 2. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 3. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUK\VILA, Vl ASHINGTON, at a Regular Meeting thereof this day of ,2009. ATTEST I AUTHEl\.TTICATED: Jim Haggerton, Mayor Christy O'Flaherty, CMC, City Clerk Office of the City Attomey Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: APPROVED AS TO FORM BY: C:\Documents and Settings\Ali Users\Desktop\Kellr\11SDATA \Ordinances\Gambling Tax Rates.doc 1/'17/2009 Page 2 of 2 Name of Organization Tukwila Community Schools Collaboration (2006) Tukwila Pantry (2006) South Seattle Community College APPLE (2006) Way Back Inn (2006) American Cancer Society (2006) South Seattle Community College APPLE Tukwila Community Schools Coolaboration Tukwila Pantry Way Back Inn IADT La Mode Fashion Show Special Olympics Foster HS C Squad Boys Basketball Domestic Abuse Women's Network Tukwila Pantry Showalter Middle School 6th Grade Math Showalter Parent Crew Tukwila Pantry Cascade View Elementary Showalter MS Parent Crew Showalter MS 6th Grade Math Desks Tukwila Pantry Luncheon Scholarships Qadir Raz IADT Ruth Anne Smith IADT Natalya Yerokin IADT Total Scholarships Total Grants GRAND TOTAL 2007 Tukwila Grants Quarter 4 4 4 4 4 1 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 2 2 2 Amount Requested I Amount Approved 1 $500.00 $8,102.501 $650.00 $3,200.001 $650.00 $1,500.001 $3,000.00 $4,720.001 $4,720.00 1 $7,200.001 $500.00 $6,000.001 $2,000.00 $8,102.501 $2,000.00 $4,000.001 $500.00 $5,000.00 $5,000.00 $5,000.00 $2,500.00 $1,950.00 $2,000.00 $2,000.00 $8,102.50 $2,000.00 $844.00 $1,607.00 $1,200.00 $1,200.00 $4,000.00 $811.00 $630.00 $4,616.00 $200.00 $1,000.00 $1,000.00 $500.00 $2,500.00 $41,084.00 $43,584.00 Reason for Declining 4 attendees Check 1006 1004 1005 1002 1003 1012 1011 1013 1015 1014 1016 2002 1021 1020 1024 1023 1027 2004 1029 1030 1026 1018 1017 1019 Name of Organization Foster HS Wrestling Mats (2007) Literacy Source FHS Senior Class Committee Foster HS Golf Team Intl Academy of Design /Tech Lieracy Source Showalter Middle School SPAA Special Olympics Tukwila Pantry Tukwila Comm Schools Collaboration Tukwila School District Girl Scouts of Western WA Cascade View Elementary Dream On Foundation Tukwila Pantry Total Other Total Grants GRAND TOTAL (2 parts) OTHER Tukwila Community Center Sponsorship Susan G Komen Matching Bingo Fundraiser Alzheimer's Assoc Matching Bingo Fundraiser 2008 Tukwila Grants Quarter 1 41 1 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 2 2 Amount Requested I $13,443.931 1 $5,196.851 $5,480.701 $10,000.001 1 $1,000.001 I $2,500.001 $8,000.001 $1,000.001 $7,500.001 $320.001 1 $2,750.001 $8,000.001 Amount Approved $13,444.00 $3,900.00 $10,000.00 $4, 746.00 $2,750.00 $2,750.00 $1,000.00 $500.00 $600.00 $2,100.001 $37,590.001 $39,690.001 Reason for Declining Check 2006 No budget/incomplete. Other organizations selected Need before selections Not received on time Need before selections Other organizations selected Need before selections Other organizations selected Need before selections No budget 276914 2007/2008 2009 2012 2013 2014 2005 2010 City of Tukwila Jim Haggerton Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Jim Morrow, Public Works Directo~ January 26, 2009 DATE: SUBJECT: Record Storaqe Facility Lease ISSUE Authorize staff to negotiate a lease for a new record storage facility space from the Sabey Corporation. BACKGROUND In November 2007, the City Clerk's Office expressed the need for additional space for the City's record storage center. The current facility at 12026 42nd Avenue South (a former Fire station) is old, undersized (records are currently spread all over the City), and lacks adequate fire protection. Currently the records storage facility holds 1,260 boxes of vital City records, under the charge of the Clerk's Office. The City Clerk's Office receives an average of 81 more storage boxes annually than those purged, per the State Records Retention Schedule. At this rate, the City will run out of space this year and be unable to continue offsite storage of critical records. Due to the immediate and long-term need for additional storage space, a search was conducted to identify approximately 6,000 sq. feet that would be suitable for both City records and Police Department records. The Sabey Corporation has identified warehouse space. Staff toured the proposed facility multiple times. With tenant improvements, the proposed facility will meet all of the City and Police Department needs well into the future. ANAL YSIS The Sabey Corporation submitted a lease proposal with two options: . Option A: 5-year lease for $311,268 total rental cost and $105,000 worth of up-front tenant improvements. Sabey will perform the up-front tenant improvements. The improvements include patch and paint the entire space; ceiling demolition; gas and electrical meter installations; and sidewalk and exterior door reconstruction. . Option B: 5-year lease for $232,785 total rent and $33,255 tenant improvement allowance. Tenant improvements are not as extensive. INFORMATIONAL MEMO Page 2 The net costs of Option A and B are relatively close - $206,268 ($311,268 - $105,000) versus $199,530 ($232,785 - $33,255); a difference of $6,738. If Option B were chosen, the City would be required to perform the additional tenant improvements needed for the space. If the City were to undertake the improvements, the staff costs and time to award a contract and oversee the contract would cost more than the $6,738 in difference. As part of the project, the City must dismantle the existil)g shelves, re-assemble them, purchase additional shelving, and erect a floor-to-ceiling fence to separate the Police records from City records. The City has received an estimate of $41,783 from Easyup Storage Systems for the shelving work (same supplier of the existing shelving) and an estimate of approximately $30,000 for the fence and gates for a total of approximately $72,000. Public Works and Finance have discussed the funding options. It is proposed that the 303 Fund be used for both the annual rent and the shelving/fence costs. RECOMMENDATION Staff recommends pursuing Option A with Sabey and consideration of this item at the February 9, 2009 Committee of the Whole Meeting and subsequent February 17, 2009 Regular Meeting. ATTACHMENT Sabey Corporation lease offer dated July 22, 2008. P:\Jim\Revised - Record Storage Memo - 1-26,{)9 - changes accepted.doc 2 July 22, 2008 Sent Via Email & U.S. Mail Mr. Jim Morrow, P.E. imorrow@cLtukwila.wa.us City ofTukwila Public Works Director 6300 Southcenter Blvd. Tukwila, W A 98188-2544 Re: Lease of Warehouse space at Intergate.East Dear Jim: SABEY CORPORATION appreciates the opportunity to present to The City ofTukwila ("Tenant") our proposal for leasing warehouse space at Intergate.East Building 1 ("IGE 1 "). The following are the key business terms, which if acceptable to Tenant, shall be the basis for a new lease agreement. L- BUILDING PARAMETERS Owner Prome: SABEY CORPORATION, a Washington State company with over 35 years of experience and over 4 million square feet under ownership, will own and manage the property. A Limited Liability Company wholly owned by Sabey Corporation will be the direct owner of the property. Landlord: International Gateway East LLC c/o Sabey Corporation. Premises: Landlord shall provide up to approximately 6,651 square feet in IGE's Building #1 pursuant to BOMA standards, as outlined on the attached floor plan. Additional Space: In the event the Tenant needs additional space, Landlord is willing to discuss additional alternatives to accommodate Tenant's space needs. Use of Space: General record storage space or other uses incident thereto. Access: Tenant will have access 365 days a year, 24 hours a day, subject to Landlord's security protocols for the property and building. Building Security: Landlord has a contract with a security provider to monitor the building and site after hours. Tenant shall have the right to install a cardkey and camera security system on Tenants space, at Tenant's cost, subject to Landlord's building protocols. Landlord is willing to discuss any additional security requirements Tenant might have. Parking: Landlord shall provide Tenant up to one (1) unassigned parking stall per 1,000 rented square foot leased. S~BEY CORPORATION IL- ECONOMIC TERilfS Term: Five (5) years. Commencement: October 1,2008 or sooner or upon substantial completion of Ten ant Improvements. Ootion A: Rental Rate: Year 1: Year 2: Year 3: Years 4-5: Tenant Improvements to Space: $ 8.30 per square foot, per year, NNN. $ 9.00 per square foot, per year, NNN. $ 9.50 per square foot, per year, NNN. $10.00 per square foot, per year, NNN. In the event that a five (5) year lease is fully-executed Landlord will patch & paint the entire premises, provide door locks, heat premises (no cooling), demo ceiling, provide lighting, install gas & electrical meters, add new exterior lighting, sidewalk and exterior door, provide a small amount of electrical, and clean up flooring, per the attached space plan. The total estimated cost for completing all the work requested by Tenant is a total of$105,000. Tenant shall incur the cost of any additional alterations, improvements, and repairs including all wiring & cabling for data and communications. Ootion B: Rental Rate: Year 1: Year 2: Year 3: Year 4: Year 5: $ 6.60 per square foot, per year, NNN. $ 6.80 per square foot, per year, NNN. $ 7.00 per square foot, per year, NNN. $ 7.20 per square foot, per year, NNN. $ 7.40 per square foot, per year, NNN. Tenant Improvements to Space: In the event that a five (5) year lease is fully-executed, Landlord will provide for a Tenant Improvement Allowance of up to $5.00 per rented square foot (or $33,255.00) to be used towards improvements, alterations and repairs, including any space planning or design costs, subject to Landlord's review and approval of the Working Drawings. Tenant shall incur the cost of any additional alterations, improvements, and repairs including all wiring & cabling for data and communications. Security Deposit: A cash deposit equal to last month's rent will be required. Amount of additional security required, if any, to be determined upon Landlord's review of Tenant's current financial statements. S:t~BEY CORPORATION Operating Costs: Operating costs shall be passed through on a pro-rata basis and are currently estimated at $2.75 per rentable square foot, per year (which electricity will be separately metered). NNN Operating costs include the following services for a typical user: a. Real Estate Taxes b. Property Insurance c. Site, Building and Parking Lot Maintenance e. Standard Water Usage f. Standard Sewer Usage g. Building & Site Security and Fire Monitoring 1. Exterior Landscaping k. Property Management IIL- OTHER PROVISIONS: Confidentiality: Each party hereto agrees to retain in confidence all information that is disclosed by the other party and is marked or otherwise identified as confidential at or near the time of discussion, including without limitation, the terms and conditions of this Letter of Intent. In addition, unless othenvise required by law, neither party shall make any press release or public announcement with respect to this Letter of Intent or the transactions completed hereby without prior consent of the other, which consent shall not be unreasonably withheld or delayed. Broker's Fee: The fmancial structure of this proposal is based on Landlord's and Tenant's desire to complete this transaction without the involvement of a third party Brokerage representation for either party. This Proposal does not create any legal rights or obligations to either party, but rather summarizes the key business terms of our offer. All of the legal rights and obligations of the parties will be set forth in the lease agreement. Please confirm that this Letter of Intent accurately sets forth your understanding of the key business terms by signing the enclosed copy of this Letter and returning it to me before July 31, 2008 Sincerely, SABEY CORPORATION, as agent for International Gateway East LLC /fdP'if /I Ihd;j' Marcy A. Purdy Associate Vice President of Leasing SA BE v L~~\ , 1 CORPORATION ACCEPTED AND APPROVED: CITY OF TuKWILA By: ItsrritIe: Date: cc: Mikel Hansen Ken Stickley SABEY CORPORATION, as agent for International Gateway East LLC By: ItsrritIe: Date: City ofTukwila Jim Haggerton, Mayor Shawn Hunstock, Director FinancelJepartment INFORMATIONAL MEMORANDUM From: Mayor Haggerton Finance & Safety Committee Shawn Hunstock, Finance Director./l2r To: Date: January 27, 2009 Subject: Recommendation for Armored Car Service Issue The City IS In need of an armored car service to replace the current practice of employees driving city vehicles to the bank, or bringing their deposits to City Hall for inclusion in the Finance deposit. BackQround Departments have for many years had employees driving money from non-City Hall locations to the bank or to the Finance department for inclusion in our daily deposits. For cash receipts in City Hall, as well as deposits from other departments brought to Finance, a Finance employee drives to the bank on a daily basis to make the deposit. During 2008 we had a Finance employee assaulted at the bank as she was attempting to make a deposit. Fortunately, the employee was not seriously injured and there was no financial loss to the city. Utilizing an armored car service would provide for a more secure means of getting daily deposits to the bank. This would also be more efficient and less costly than several employees at different departments driving to City Hall or the bank to make the deposit. The armored car service would be utilized instead, saving on staff costs and benefits, not to mention the wear and tear on city vehicles being used. Recommendation The attached spreadsheet details the estimated time and cost involved with city employees at various locations driving deposits to City Hall or to the bank. As you can see, there is a minimal cost savings between our current practice versus securing an armored car service for regular pickup. At City Hall, this would be five days per week, Monday through Friday. My recommendation would be for seven days per week at the Community Center, based on current daily volume at TCC. At the golf course I would recommend three to five days per week during the off season, and seven days per week Armored Car Service Paqe 2 during the summer. Three days per week would be adequate at the pool, unless the cash and check volume changes significantly, at which time the frequency could be increased to five days per week. Based on current deposit amounts, I would recommend three days per week for pickup at Station 51 for Fire department deposits. I am recommending utilizing an armored car service effective as soon as possible. In the coming weeks I will prepare a new Finance policy regarding off-site (non-City Hall) deposits giving departments information and guidelines for security of cash, checks and credit card information, timeliness of depositing, and review and approval of deposits to insure proper segregation of duties. This is an unbudgeted expense for the departments involved. The expectation at this time is for departments to absorb the cost of armored car service from their existing operating budgets. Department budgets will be evaluated during the mid-biennium adjustment process to determine if there is a need to fund the cost of this service from fund balance. Funding could be made at other times too, if necessary, with Council approval. Attachments: . Armored Car Service Analysis spreadsheet CITY OF TUKWILA A RMORED CAR SERVICE ANALYSIS ESTIMATED COST Of ARMORED CAR SERVICE' Service term Months of Service Cost of Service: Fuel Surcharge FULL RATE Base Rate at 8.2% 1 Day service 119.00 2 Day service 144.00 3 Day service 195.00 5 Day service 286.00 7 Day service 379.00 9.76 128.76 11.81 155.81 15.99 210.99 23.45 309.45 31.08 410.08 Finance Dept City Hall annual 12 Tukwila Community Center annual 12 Total City Hall 5 ESTIMATED COST WITHOUT ARMORED CAR SERVICE.. 260 Hall per week Number of trips to bank/ City Hall per year 3 trips to banal y per hour (including benefits) 0.5 Number d of ho a roll cost Estimated hourly ent on bank trips in hours Estimated time spent 3,900 ied benefits include decrease liability exposure from employees Additional, unQuantrf Parks Recreation Dept Tukwila Foster Golf Course pool Nov Air �_?�_-__Cit T12, annual 6 6 Total Station 51 annual 12 Fire Dept TOTAL 5064 2,532 2,532 ?632 9,284 6570 2460 1,857 1 857 2,460 3 713 2 460 2 532 16,808 3 713 2,46 10 562 2 53 2 4,317 317 Total Total Grand Total Golf Eire Dept Course Pool P R 5 5 3 15 260 260 5 30 30 0.5 0.5 0.5 3,900 12,480 2,340 18,720 3,900 TCC 6 312 30 0.5 4,680 department cars. transporting cash and checks; reduced need for