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HomeMy WebLinkAboutCity Council Meeting - Council - Minutes - 01/02/1996 Kent, Washington January 2, 1996 Regular meeting of the Kent City Council was called to order at 7:00 p.m. by Mayor White. Present: Councilmembers Bennett, Clark, Epperly, Houser, Johnson, Orr and Woods, Operations Director/Chief of Staff McFall, City Attorney Lubovich, Planning Director Harris, Public Works Director Wickstrom, Fire Chief Angelo, Parks Director Hodgson, Finance Director Miller, Information Services Director Spang, and Police Captain Miller. Approximately 40 people were at the meeting. PUBLIC Oath of Office. The Oath of Office was adminis- COMMUNICATIONS tered to newly elected Councilmembers Bennett, Epperly, Orr and Woods. Employee of the Month. Mayor White announced that Galen Hirschi of the Information Services Department has been selected as Employee of the Month for January. He noted that Hirschi juggles a significant volume of questions about software, hardware, printers or the network, as well as dealing with a variety of complex technical challenges. He added that Hirschi's training of City staff has been invaluable to all who have been in his classes. Information Services Director Spang voiced appreciation for Hirschi's enthusiasm, teamwork and organization, and the Mayor presented him with the Employee of the Month plaque. EXECUTIVE At 7 : 05 p.m. , the meeting recessed into an SESSION Executive Session of approximately 15 minutes to discuss pending litation and potential litiga- tion. The meeting reconvened at 7:23 p.m. CONSENT WOODS MOVED that Consent Calendar Items A through CALENDAR E, with the exception of Item C which was removed by Councilmember Clark, be approved. Houser seconded and the motion carried. MINUTES (CONSENT CALENDAR - ITEM 3A) Approval of Minutes. APPROVAL of the minutes of the Special Council meeting of December 13 , 1995. STREET UTILITY/ (PUBLIC HEARINGS - ITEM 2A) UTILITY TAX Street Utility Repeal and Substitute Utility Tax. As directed by Council, this date has been set for a public hearing on the repeal of the City's street utility and adoption of a substitute utility tax. The Public Works Committee has recommended adoption of the ordinance repealing the existing street utility, and the adoption of an ordinance creating a 1% increase in the 1 January 2 , 1996 STREET UTILITY/ utility tax specifically designated for street UTILITY TAX purposes. The revenues generated by the utility tax would equal that lost by the repeal of the street utility. operations Director/Chief of Staff McFall noted that the Washington State Supreme Court has invalidated a portion of a Seattle ordinance relating to Seattle's street utility. He noted that Seattle's street utility is based on the same statute as Kent' s. He explained that Kent's street utility is dedicated to the funding of two east/west corridor projects--the 196th corridor and the 277th corridor. He noted that funds have been expended in design and right-of-way acquisi- tion, and that grant funds have been secured as well. McFall said that staff has analyzed the results of Seattle's lawsuit and tried to iden- tify alternatives which could be used to replace the revenue that was available from the street utility, if the street utility were repealed. He said the risks of continuing to collect the street utility are far greater than the potential benefits, and that other sources must be found to fund the construction. McFall stated that a Task Force was formed, which recommended to the Mayor that the funds be re- placed through a 1% increase in the utility tax that the City charges on all utilities except cable television. He noted that the street utility generates approximately $1. 4 million per year and that 1% of the utility tax would also generate approximately $1.4 million per year. He said staff tried to identify who would be pay- ing the tax and make it neutral so that both businesses and residents would be paying as nearly as possible the same proportioned amounts as they were under the street utility, and that the 1% utility tax provides the best way of doing that. He explained that rates will fluctuate depending upon the amount of utilities used and the number of employees. He urged the Council to repeal the street utility ordinance and adopt an ordinance raising the utility tax by 1% with that revenue dedicated to the corridor projects. 2 January 2, 1996 STREET UTILITY/ Public Works Director Wickstrom stated that the UTILITY TAX street utility was the last financial link in implementing the corridor projects. He noted that the grants which were received are very tentative, and that if the City's source of financing is lost, the grants will be pulled. He said that $5, 500, 000 has already been spent, $1,500, 000 of which is grant money which may have to be reimbursed if funding is lost. Wickstrom noted that the county had budgeted a five-lane improvement on 240th from 116th to 132nd, and that during the Meridian Annexation they imple- mented a mortgage financing program in which they don't do any improvements unless the adjacent city pays them back. He said the City' s frontage share was $1,800, 000 and that it was planned to use the street utility revenue from the annexa- tion to fund it. He added the west leg of the 196th corridor project was always questionable as to whether it could be implemented. He concluded that without an alternative source of funding, the 240th project could not be done, $5, 000, 000 would be pulled by the County from the 196th corridor project, $13 , 000, 000 in grants would be jeopardized, and $1, 500, 000 already spent may have to be repaid. He pointed out that this covers just the first six years in the Comp Plan. He noted that by 2002, the east leg of the 196th corridor needs to be constructed (East Valley to Benson) , and the west leg of the 228th corridor must be constructed (Military Road to 54th) in order to meet the service level. McFall noted that the City Attorney has recom- mended changing the effective date of the ordinance repealing the street utility and the ordinance increasing the utility tax to within five days of enactment of the ordinances. Finance Director Miller noted that the funding options have been reviewed by the Task Force, the Chamber of Commerce, the Operations Committee and the Public Works Committee. She outlined them as follows: 1) leave street utility in place and seek Legislative remedy, 2) repeal the utility without replacement revenues, 3) repeal the utility and lower the level of service, and 4) repeal the utility and substitute the revenue. She stated that in Option 4 , 90% of the funding 3 January 2, 1996 STREET UTILITY/ is paid by businesses and 10% by residents, and UTILITY TAX that Kent already has the lowest utility tax in the state. She added that it would be easy to implement. She then explained the other options and said that if the street utility were repealed and not replaced, revenue would be lost. Miller added that in the 1994 CIP, a survey showed that citizens are willing to pay additional taxes for the corridor projects. She spoke in favor of enacting the ordinances in five days. Mayor White declared the public hearing open. Paul Morford, P. O. Box 6345, Kent, said the street utility is the most fair tax and urged the Council to keep it. He said the second choice would be to take an increase in the property tax to a vote of the people. There were no further comments and WOODS MOVED to close the public hearing. Orr seconded and the motion carried. CLARK MOVED to adopt Ordinance No. 3273 repealing the existing street utility ordinance, and containing a five-day enactment period. Woods seconded. Bennett said he does not see how the corridor projects will be built without this, but that it is an opportunity to not increase taxes by leaving it as is. Clark pointed out that the Transportation Plan has obligations and that this is the best remedy. Woods agreed with Morford that the existing street utility was the best possible option, but that it is no longer viable and an alternative must take its place. Upon Johnson's question, Wickstrom said the total for the three grants is $13 , 000, 000. The Mayor noted that the Transportation Improvement Board is beginning to pull back funds where projects have not been built after a number of years. The City Attorney noted for Johnson that the Seattle challenge questions the ability of cities to continue collecting the residential portion of the street utility. He added that the commercial aspect has not been challenged until recently and there is no court ruling on it. He clarified that it is Seattle' s ordinance which was invali- dated, but that Kent's is at risk. 4 January 2, 1996 STREET UTILITY/ Johnson said he does not feel Kent's ordinance is UTILITY TAX unconstitutional, but it would be in the best interest of the city to repeal the street utility at this time. He said he would prefer to keep the street utility in tact, but there is too much at stake. Lubovich noted for Orr that Seattle is asking for reconsideration on the issue of re- funding money. Bennett asked whether Boeing has filed a lawsuit. Lubovich said they have, and that his recommendation to repeal the ordinance and find a substitute source of funding was presented two months ago, prior to any lawsuit. The motion to adopt Ordinance No. 3273 then carried. CLARK MOVED to adopt Ordinance No. 3274 creating a 1% increase in the utility tax specifically designated for street purposes, thereby replacing the Street Utility fee, to be in force five days from publication. Woods seconded. Johnson said that this needs to be done until the issue of the street utility can be addressed through the Legislature. He said it is clear that the corridor projects are needed, and fund- ing should not be jeopardized. Woods concurred. BENNETT MOVED TO AMEND the motion by sunsetting the ordinance after the Legislative session, which would motivate Council to work on a re- placement. Clark did not accept this as a friendly amendment, and Johnson seconded for discussion. Clark spoke in opposition of the amendment because of the financial problem and the commitment to the projects. He said that most likely no action would be taken by the Legislature. Houser voiced concern that grants may be jeopardized by the sunset clause, and said sunsetting at the end of the Legislative session is too soon. Bennett said the purpose is to let the Legislative address the issue across the state, and if they don't, it would not affect the ordinance. Orr expressed concern about the effect of the increase on those with fixed in- comes, and about how the charge for a small home would be about the same but for a large home it could double. She agreed with the idea of having people vote on this. She pointed out that each time any of the utility rates increase, the tax 5 January 2, 1996 STREET UTILITY/ would also increase. McFall pointed out that the UTILITY TAX ordinance as drafted has a sunset provision in it for April 7, 2002, and that the original street utility had that date as a sunset provision. After further discussion on the sunsetting clause, the MOTION to sunset Ordinance No. 3274 at the end of the Legislative session FAILED with all opposed. JOHNSON MOVED TO AMEND Ordinance 3274 by sunsetting it effective the date that the State Legislature enacts or renews the street utility. Bennett seconded. Clark asked whether this assumes that any movement by the State Legislature on a street utility tax is also simultaneously enacted. Johnson said that is correct. The motion to amend carried with Clark opposed. Orr offered a friendly amendment that Council enact a 1/2% increase as opposed to the 1% increase until such time as a better way could be found, through sales tax revenues, changing priorities, or letting people vote on raising their property taxes. Clark did not accept the friendly amendment. ORR MOVED TO AMEND THE MOTION to substitute 1/2% of 1% for the 1% increase. Houser seconded. Upon Johnson's question, Wickstrom said if the full amount of money is not replaced, there will not be funds available to implement the programs, and that funds already expended will be lost. Miller stated that reducing the increase would produce only half of the needed amount, and that it may jeopardize the gas tax. She also ex- pressed concern about any further delay. Clark pointed out that much is at risk and it is time to make a commitment. Woods reminded the Councilmembers that they are elected to make decisions such as this, and that if a more tenable solution is found in the future, the issue can be revisited. Orr's motion to amend by substituting 1/2% for 1% FAILED with only Orr in favor. The motion to adopt Ordinance 3274 as amended then carried with Orr opposed. 6 January 2, 1996 TRAFFIC (CONSENT CALENDAR - ITEM 3C) CONTROL (REMOVED BY COUNCILMEMBER CLARK) 100th Avenue SE Extension and SE 244th Street Temporary Closure. The Public Works Committee, at their October 23rd meeting and reaffirmed at their December 14th meeting, recommended the temporary closure of SE 244th Street between 104th Avenue SE and 100th Avenue SE for a dura- tion of 18 months; the adoption of Alternative A as the planned road network for the neighborhood, subject to including within the opening of 100th Avenue SE between SE 242nd Street and SE 244th Street, specific traffic restrictor provisions such as speed humps, chokers, etc. , as part of the improvement so as to prevent high speed and unnecessary pass through traffic; and acknowl- edgement that at the end of the 18 month closure period, SE 244th Street will be reopened as per the adopted road network (Alternative A) . Clark stated that a special committee meeting was held on East Hill regarding this issue. He noted that the community, after hearing the impacts on the neighborhood, chose Alternative A. He MOVED for adoption of the 100th Avenue SE Extension and SE 244th Street closure. Bennett seconded. The motion carried. SUBDIVISION (OTHER BUSINESS - ITEM 4A) Glen Kara Preliminary Plat SU-95-3. This date has been set to consider the Hearing Examiner's recommendation for conditional approval of an application by Lakeridge Development, Inc. for a 34-lot single family residential preliminary subdivision. The property is located west of 100th Avenue S. and north of S. 222nd Street. ORR MOVED to accept the findings of the Hearing Examiner and to adopt the Hearing Examiner's recommendation of approval with twenty-one (21) conditions of the 34-lot single family residen- tial preliminary subdivision. ADULT USE (OTHER BUSINESS - ITEM 4B) Adult Use Zoning Code Amendment. The proposed ordinance would amend the City's existing Adult Use zoning provisions by eliminating setbacks for adult use businesses in residential use commer- cial zones. 7 January 2 , 1996 ADULT USE Laurie Evezich, Assistant City Attorney, ex- plained that a lawsuit was filed in 1994 resulting in a declaration that the City' s adult use zoning ordinance was unconstitutional as applied to the applicant. She noted that the City has reviewed the options available, and that the City Attorney's Office recently recommended to the Planning Committee the adoption of an option which would be the most legally defensible and would meet the requirements of the Federal court order. She said that this is Option 4, which would lift the 1000, setback from residen- tial uses in commercial zones. She explained that there would be the potential for 32 sites, but that this does not indicate that there will be 32 applications or 32 sites available. She added that licensing regulations have been enacted which protect the citizens and would reduce any negative secondary effects from adult use businesses, and urged the Council to adopt Option 4 . Evezich noted for Houser that there are not many buildings in the area that are empty, and that if no action were taken tonight the moratorium would expire on January 16th and adult use businesses could locate anywhere in the city. The City Attorney pointed out that the ordinance could have a five-day effective period and recommended amending the ordinance, if adopted, to become effective five days after publication, rather than 30 days after passage. ORR MOVED to adopt Ordinance No. 3275 amending certain adult use zoning code requirements in the City of Kent, enacting a five-day effective period, and to adopt the findings in this ordi- nance. Woods seconded. Johnson said that although he still agrees with the remarks made by former Councilmember Mann at the last meeting, and that he opposes these types of uses, he must vote to support adoption of this ordinance to restrict where the uses would be located. Upon Bennett's question, Lubovich ex- plained that the judge did not indicate the number of sites required. He pointed out that there must be zoning for a reasonable number of sites, and that does not mean that the sites must be vacant. Evezich said there are two sites available which are not currently being used. Orr pointed out that this ordinance restricts 8 January 2, 1996 ADULT USE uses to a small area in the city, which will make it easier for police to patrol if one or more of these establishments were to open. Orr's motion to adopt Ordinance No. 3275 then carried with Bennett and Epperly opposed. IMPACT FEES (OTHER BUSINESS - ITEM 4D) School Impact Fees - Authorisation to Amend Comprehensive Plan. The proposed resolution declares an emergency pursuant to City Ordinance No. 3237 and authorizes the preparation of an amendment to the City's Comprehensive Plan to adopt the Capital Facilities Plans of school districts who choose to participate in the City's school impact fee program. The City Attorney noted that this is one component of the school impact fee program. ORR MOVED to enter into the record a letter received from the school district this afternoon regarding this issue. Woods seconded and the motion carried with Bennett opposed. ORR MOVED to adopt Resolution No. 1450 declaring an emergency and authorizing the City to con- sider the addition of School District Capital Facilities Plans as sub-elements of the City's Comprehensive Plan. Woods seconded and the motion carried with Bennett and Epperly opposed. ALTERNATIVE (OTHER BUSINESS - ITEM 4C) MEDICINE Alternative Medicine as an Economic Development Effort. The proposed resolution has been recom- mended by the Natural Medicine Economic Task Force promoting Kent as the "Wellness Capital of America" and encouraging the establishment of wellness-oriented medical practices and asso- ciated businesses in the City of Kent. Mayor White introduced Merrily Manthey and com- mended her for her efforts on this issue. Lin Houston stated that she has benefitted greatly from alternative medical care, and said that the city has been very progressive in caring for it's residents, citing the parks and recreation pro- grams, cultural arts programs, and human services programs as examples. She pointed out that the King County Council recently provided for a natural medicine public health clinic, which is 9 January 2, 1996 ALTERNATIVE the first such clinic in the nation. She thanked MEDICINE the Council for their continuing efforts to improve the quality of life for Kent residents. Arlene Darby, Citizens for Alternative Health Care, said it is appropriate that Kent would accept the responsibility for a public justice system and work on physical, mental and emotional help. She encouraged the city to be a center for health and wellness, and noted that it will also benefit economically. Dr. Jonathon Wright thanked the Council for being open and receptive to all types of health care. He said the City has an opportunity to improve both the health of its citizens and its economic health. Merrily Manthey said that an interview will appear in the New York Times soon regarding the demand from citizens for a choice as to health care. She noted that Rochester, Minnesota, has an economic advantage of approximately $1, 000, 000 a day by having adopted a health focus. She explained that this is from hotels, bed and breakfasts, and so forth. She predicted that many people will come to Kent, adding to the revenue and the quality of life. JOHNSON MOVED to adopt Resolution No. 1449 endorsing Kent as the "Wellness Capital of America" and encouraging the establishment of wellness-oriented medical practices and asso- ciated businesses in the City of Kent. Orr seconded and the motion carried. Mayor White expressed appreciation to the Task Force. COUNCIL (OTHER BUSINESS - ITEM 4E) Election of Council President. Pursuant to City Resolution No. 1094, the City Council must elect its president, who shall also serve as the City's Mayor Pro Tem, in January of this year for a two- year term. WOODS expressed her appreciation to the Council, acknowledged staff for their work, and NOMINATED Christi Houser as the next Council President. Orr seconded and the motion carried. Mayor White thanked Dr. Woods for her service as Council President. Houser thanked the Council- members and said she will do the very best job possible. 10 January 2, 1996 COUNCIL Added Item. Paul Morford, P.O. Box 6345, Kent 98064, stated that he has been asked why Councilmember Bennett is absent from Council meetings, and said he feels that although he is in attendance, the television camera cannot see Mr. Bennett. He suggested rotating the chairs. POLICE (BIDS - ITEM 5A) DEPARTMENT Purchase of Police Patrol Vehicles. The Equip- ment Rental Division solicited bids for the purchase of eleven police patrol vehicles. These vehicles are normally purchased from the State of Washington Acquisition Contract. However, due to limited supply, the State closed all requests before the City was notified of the submittal date, which was November 15, 1995. As such, there was no opportunity to place the order as in years past. It is the recommendation of the Public Works Director that eleven 1996 Crown Victoria Police Interceptors be purchased from the sole source supplier, Arendale Ford, of Arlington, Texas for the amount of $19, 058 . 00 each, plus tax, plus $616. 68 delivery fee per vehicle. CLARK MOVED that the purchase of eleven 1996 Crown Victoria Police Interceptors be awarded to Arendale Ford, Arlington, Texas for the bid amount of $19, 058 . 00 each, plus tax, plus $616. 68 delivery fee per vehicle. Woods seconded and the motion carried. PARKS & (CONSENT CALENDAR - ITEM 3D) RECREATION House Demolition Project. ACCEPT as complete the demolition of the Parks Department house at 8121 South 259th, and release retainage to RJC Inc. upon receipt of state releases. (CONSENT CALENDAR - ITEM 3E) Driving Range Roof Extension Project. ACCEPT as complete, the Driving Range Roof Extension Pro- ject at the Riverbend Golf Complex, and release retainage to Golf Landscaping upon receipt of state releases. 11 January 2, 1996 FINANCE (CONSENT CALENDAR - ITEM 3B) ARRroval of Bills. APPROVAL of payment of the bills received through November 30 and December 15 and paid on November 30 and December 15 after auditing by the Operations Committee on December 27, 1995. Approval of checks issued for vouchers: Date Check Numbers Amount 11/30/95 162182-162756 $2, 392,419.47 12/15/95 162757-163226 2,473, 045. 38 Approval of checks issued for payroll for November 16 through November 30 and paid on December 5, 1995; and approval of checks issued for payroll for December 1 through December 15 and paid on December 20, 1995. Date Check Numbers Amount 12/5/95 Checks 207772-208145 $313,202.70 Advices 29528-30010 593 , 116.29 $906, 318.99 12/20/95 Checks 208146-208455 $264, 658.47 Advices 30011-30425 540,435. 36 $805, 093 .83 REPORTS Council President. Houser reported that she has gathered information regarding implementation of a teen court, and that she has a video on how a teen court operates if anyone is interested in viewing it. Houser then announced Council Committees as follows: Operations: Johnson-Chair, Bennett and Orr Public Works: Clark-Chair, Orr and Epperly Planning: Orr-Chair, Johnson and Clark Public Safety: Bennett-Chair, Woods and Clark Parks: Woods-Chair, Johnson and Epperly Operations Committee. Johnson said the committee is scheduled to meet at 9: 30 a.m. next Wednesday, but that because of new membership, it may have to be rescheduled. 12 January 2, 1996 REPORTS Administrative Reports. McFall reminded the Councilmembers that the annual Council Retreat is scheduled for January 19 and 20, 1996, with Lyle Sumak. He noted that the sessions will begin at 4: 00 p.m. on Friday and 8: 00 a.m. on Saturday. EXECUTIVE At 9:25 the meeting recessed into an executive SESSION session of approximately ten minutes. (Potential litigation) ADJOURNMENT The meeting reconvened and adjourned at 9: 55 p.m. renda Jac er, CMC City ClerX 13