HomeMy WebLinkAboutCity Council Meeting - Council - Minutes - 10/16/2012 ® Kent City Council Meeting
�, � October 16, 2012
The regular meeting of the Kent City Council was called to order at 7:00 p.m. by
Mayor Cooke. Councilmembers present: Albertson, Boyce, Higgins, Perry, Ralph,
Ranniger, and Thomas. (CFN-198)
CHANGES TO THE AGENDA
A. From Council, Administration, Staff. (CFN-198) Council President Higgins
removed Other Business Item C, Resolution Endorsing Proposition 1, from the
agenda. CAO Hodgson removed the Executive Session from the agenda.
B. From the Public. (CFN-198) The public made no changes to the agenda.
PUBLIC COMMUNICATIONS
A. Public Recognition. (CFN-198) Mayor Cooke noted that the Omax Corporation
is adding a new 22,000 sq. ft. building, and announced that Kona. Kai Coffee Company
and Pacific Metallurgical both recently received King County Executive's Small
Business awards.
B. Community Events. (CFN-198) Higgins noted that SkateAmerica is this
weekend, and Albertson said Kent's Dancing With The Stars is also this weekend.
C. Glenbrook Neighborhood Council (CFN-1304) Toni Azzola introduced
members of the Glenbrook Neighborhood Council. Mayor Cooke presented them with
a Certificate of Recognition.
D. Torklift's 2nd Annual Turkey Challenge. (CFN-155) Mayor Cooke proclaimed
October 16 through November 16, 2012, Second Annual Kent Turkey Challenge in the
city of Kent, and presented the proclamation to Katie Brown of Torklift Central.
Ms. Brown explained the turkey challenge and noted that approximately $10,000
was raised last year for the food bank.
E. Intergovernmental Reports. (CFN-198) Council members reported on issues
discussed at the regional committees on which they serve.
PUBLIC HEARINGS
A. 2013-2014 Biennial Budget (Second Hearing). (CFN-186) Finance Director
Nachlinger gave a presentation on the budget including each fund balance, staffing
levels, and major changes. Mayor Cooke then opened the public hearing.
The following people thanked the City for their past support and requested that
support be continued: Mike Heinisch, Executive Director of Kent Valley Youth and
Family Services, 232 2"d Avenue; Bill Halleran, Director of Catholic Community
Services; Ken Taylor of Chief Executive Officer of Valley Cities; Ceugant Scolaidhe,
P.O. Box 88067, Director of Community Advocacy of Domestic Abuse Women's
Network; Tracy Vandewall, Director of Education at and Employment Programs at the
Multi Service Center; John Naegele, Early Childhood Director at the Children's Home
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Kent City Council Minutes October 16, 2012
Society, 4338 Auburn Way; Ted Schwarz, 9818 S. 2181h, member of the Human
Services Commission, 9818 S. 213th Place; and Shaina Fristo of Washington Women's
Employment and Education. Some expressed support for changing to a per capita
basis for giving, but expressed concern about using the funds for staffing. Also
speaking were Heinz Strakeljahn, 13228 SE 231, who voiced opposition to taxes and
fees, Jack Cosby, 525 Van de Vanter, who spoke highly of the Neighborhood Council
program and expressed hope that it would not be cut, Val Jodais, 25425 34`h Place
So., who urged the City to live within its means, and Andy Massagli, 11232 SE 2671h
Place, who voiced concern that the B & O tax would become permanent, and
encouraged more discussion on it. Albertson and Perry explained that because
there is no state income tax, this tax is the only option available.
Ranniger noted receipt of letters relating to parks functions from Irma Knapp, Loretta
Pearson, Orval Dealy, Laura Kader, and Cynthia Tanis, and moved to make them part
of the record. Thomas seconded and the motion carried. Higgins moved to make a
letter from Linda Denny regarding cuts to Parks staff a part of the record. Thomas
seconded and the motion carried.
Higgins moved to close the public hearing. Thomas seconded and the motion carried.
B. 2013-2018 Capital Improvement Plan (Second Hearing) and Comprehen-
sive Plan Amendments. (CFN-775) Finance Director Nachlinger gave a presenta-
tion on the Capital Improvement Plan, noting that the total includes the levy lid lift
and the B & O tax. He broke down the total cost by projects and revenues by
sources.
Mayor Cooke opened the public hearing. There were no comments from the audience
and Higgins moved to close the public hearing. Thomas seconded and the motion
carried.
C. Kent Comprehensive Plan and Amendments to Kent City Code
Section 12.13 re School Impact Fees. (CFN-775/961/1000) Planning Manager
Charlene Anderson explained that this hearing is to consider amendment of the
Capital Facilities element of the Kent Comprehensive Plan to incorporate the updated
Capital Facilities Plans of the Kent, Federal Way, and Auburn School Districts and the
new Capital facilities Plan of the Highline School District. She noted that these plans
also propose to amend school impact fees outlined in Kent City Code Chapter 12.13.
She added that adoption will be through the budget.
Mayor Cooke opened the public hearing. Bob Kenworthy, Auburn School District, 915
Fourth St. NE, Auburn, reviewed the update-to their plan and noted that single family
impact fees will remain at the same level as 2011. Tanya Nascimento, Federal Way
School District, 33330 81h Avenue SE, described their plan and noted that their single
family impact fees will also not be increased. Ralph Fortunato, Kent School District,
11020 SE 256, also outlined their plan and noted that school impact fees for single
family and multi-family will not be increased.
There were no further comments from the public and Higgins moved to close the
public hearing. Thomas seconded and the motion carried.
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Kent City Council Minutes October 16, 2012
D. 2012 Property Tax Levy. (CFN-104) Finance Director Nachlinger noted that the
total estimated levy is $20,079,269 and explained how that figure was determined.
Mayor Cooke opened the public hearing. There were no comments from the
audience, and Higgins moved to close the public hearing. Thomas seconded and the
motion carried.
PUBLIC COMMENT
A. Business and Occupation Tax. Sam Pace, Association of Realtors, 28932 154th
Avenue SE, commented on the sunset clause, and letters on the subject were made a
part of the record. (See Other Business Item 8B.)
CONSENT CALENDAR
Higgins moved to approve Consent Calendar Items A through J. Thomas seconded
and the motion carried.
A. Approval of Minutes. (CFN-198) The minutes of the workshop and regular
Council meeting of October 2, 2012, and the minutes of the regular Council meeting
of August 21, 2012, were approved.
B. Approval of Bills. (CFN-104) Bills were not available for approval.
C. Washington Traffic Safety Commission Grant. Mobilization (CFN-122)
The Police Chief was authorized to sign the Memorandum of Understanding with the
Washington Traffic Safety Commission in an amount not to exceed $8,000, and
amend the budget in accordance with the grant terms and conditions acceptable to
the Police Chief and City Attorney.
D. Washington Traffic Safety Commission Grant, Law Enforcement Liaison
(CFN-122) The Police Chief was authorized to sign the interagency agreement with
the Washington Traffic Safety Commission in an amount not to exceed $5,000, and
amend the budget in accordance with the grant terms and conditions acceptable to
the Police Chief and City Attorney.
E. Drug Free Communities Support Program Grant. (CFN-122) The Drug Free
Communities Support Program grant in the amount of $53,639 was accepted and
amendment of the budget in accordance with the grant terms and conditions
acceptable to the Police Chief and City Attorney was authorized.
F. Stop Act Grant. Substance Abuse Mental Health Services. (CFN-122) The
STOP Act grant in the amount of $48,258 was accepted and establishment of the
budget in accordance with the grant terms and conditions acceptable to the Police
Chief and City Attorney was authorized.
G, Police Services Agreement with Kent School District (CFN-122) The Mayor
was authorized to sign the police services agreement with the Kent School District in
the amount of $40,258.44 and establishment of the budget, subject to final terms and
conditions acceptable to the Police Chief and City Attorney was authorized.
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Kent City Council Minutes October 16, 2012
H. Glenbrook Neighborhood Council Resolution. (CFN-1304) Resolution
No. 1865 recognizing Glenbrook as a Neighborhood Council, was adopted.
I. Mobile Home Darks Ordinance. (CFN-207) Ordinance No. 4050, amending
Chapter 12,05, Kent City Code, related to mobile home parks, was adopted.
J. Guiberson Corrosion Control. (CFN-1111) The Guiberson Corrosion Control
Project was accepted as complete and release of retainage to McClure and Sons, Inc.
upon receipt of standard releases from the state and the release of any liens was
authorized. The original contract amount was $926,769.68. The final contract
amount was $894,523.68.
OTHER BUSINESS
A. LID 363 S. 224t" Street, East Valley Highway to Benson Road, Final
Assessment Roll. (CFN-1308) City Attorney Brubaker explained that this is a
quasi-judicial meeting which involves only those property owners assessed by the
LID. He noted that three appeals from the Public Works Committee recommendation
were filed; and, that the Council previously decided not to hear oral comments on any
appeals. He then introduced Wayne Tanaka, member of Ogden Murphy Wallace,
outside legal counsel for the City Council. Mr. Tanaka stated that the purpose of this
meeting is to confirm the final assessment roll for LID 363. He explained that the
hearing on the final assessment roll was conducted by the Public Works Committee
and the Committee's recommendation has been distributed to all members of the
Council. He added that the Council has also had the opportunity to review the
complete record of that hearing, as developed by the Public Works Committee.
In order to maintain the appearance of fairness, Tanaka asked if any member of the
Council has any disclosures to make with respect to the appearance of fairness,
Mayor Cooke stated that, although she has no authority in this matter, she did speak
with someone from the Holiday Inn. Tanaka asked whether any property owner
wishes to challenge any member of the Council on the basis of the appearance of
fairness; no one made any challenges.
Tanaka noted that three of the property owners filed appeals of the Public Works
Committee's recommendations: D & I II, LLC, Steven and Brenda Lau, and AR
Hospitality, Inc. He stated that the LID filed a response to these appeals and also
submitted two additional letters in response to further letters submitted by D & I II,
LLC. He noted that the Council has been provided with this paperwork and with the
appeal proceedings. He suggested proceeding with determining whether to confirm,
modify, or deny any of these appeals, and once that issue has been resolved, then to
determine if the Council wishes to make any further modifications to the final
assessment roll as recommended by the Public Works Committee; if not, the final
action would be to confirm the final assessment roll, as modified if applicable, by
passage of the ordinance.
There were no questions for Mr. Tanaka from the Council, or further discussion on the
appeals. Albertson questioned whether there is a staff presentation (no response was
heard). She then moved to adopt Ordinance No. 4051 adopting the Findings,
Conclusions, and Recommendations of the Public Works Committee acting as a Board
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Kent City Council Minutes October 16, 2012
of Equalization for LID 363, and confirming and establishing the Local Improvement
District 363 final assessment roll as recommended by the Committee in all respects.
Higgins seconded. Brubaker added that in addition to his introduction and
Mr. Tanaka's comments, staff is available to answer questions if Council had any.
The motion then carried.
B. Business & Occupation Tax. (CFN-104) City Attorney Brubaker noted that
two ordinances were presented and discussed at Council workshops and that the
ordinances presented tonight contain the changes requested at the workshops. He
explained that as designed, the tax should generate approximately $4.7 million a year
of additional tax revenue which is dedicated to street improvements, and that there is
a $300,000 allocation to hire two new auditors to monitor and help enforce the
ordinance. He said that in the event the tax generates more than $5,000,000, any
funds received in excess of that will be dedicated to the capital improvement fund to
be allocated per the direction of the City Council. Brubaker clarified that this is a
gross receipts tax, and that it imposes a tax of 46 cents per thousand dollars on
manufacturing and retail sales, and $1.52 per thousand dollars for services and
wholesale operations or business activities.
Brubaker also explained that the ordinance includes a square footage tax of three
cents per square foot per quarter on warehouse operations, and one cent per square
foot per quarter on other business operations. He said the business activity will pay
the higher of the B & O tax or the square footage tax, and added that if a business in
Kent conducts business activity which occurs outside the city limits, that gross income
will be deducted from the amount of tax due; similarly, businesses located outside the
city who conduct business activity inside the city will also be required to pay the B &
O tax. He noted that any business activity which does not exceed $250,000 in gross
receipts per year is exempt from the B & O tax. He concluded by explaining that
there are limited exemptions including nonprofit organizations, health management
organizations, public utilities, investment income received by individuals, farming,
gasoline sales, and liquor sales, and noted that the tax would take effect beginning
January 1, 2013.
Brubaker clarified that one of the ordinances imposes the square footage and B & O
tax, and the other creates administrative provisions so that Finance Director and staff
can administer the tax and taxpayers can understand how to pay the tax to the city.
Earlier in the meeting,,under Public Comments, Sam Pace of the Association of
Realtors, 28932 154th Avenue SE, opined that eliminating the sunset clause in the
ordinance is not well advised and that it would not affect refinancing of bonds. Also
under Public Comments, Higgins moved to make letters conforming to the Chamber's
recommendation from Vicky Warnock, Debra Snoey, Sam Pace, Jim Muir, Kent Sharp,
and Pat Hanis a part of the record. Thomas seconded and the motion carried.
Higgins moved to adopt Ordinance No. 4052 adopting a new Chapter 3.28 to the Kent
City Code entitled "Business and Occupation Tax Gross Receipts" and establishing an
effective date; and Ordinance No. 4053 adding a new Chapter 3.29 to the Kent City
Code entitled "Business and Occupation Tax - Administrative Provisions". Perry
seconded.
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Kent City Council Minutes October 16, 2012
Higgins reviewed the history of this issue, voiced opposition to the sunset clause, and
pointed out that the B & O tax will be one of the lowest in the state. Thomas spoke
against the ordinance for the following reasons: the fact that Kent does not have a
B & O tax encourages economic development in the city; it is not based on net profit;
sunset clauses are usually ongoing; and the city is not planning on bonding anything
soon.
Ralph said maintenance has been deferred for along time and it needs to be
addressed now, and voiced concern that the sunset clause will continue without
further discussion on the issue in the future. Boyce said although he is opposed to
taxes, he feels the tax is the right thing to do for the city. He said the City needs to
look for ways to cut costs and be efficient, and to address the ShoWare problem.
Albertson said the transportation issue has not been addressed for many years, and
that the B & O tax will still not fix all the problems. She concurred with Boyce that
making ShoWare work is a priority. Perry explained that forces the city doesn't
control have caused problems with the budget, including twenty years of debt. She
said this tax is better than nothing but that the City must find new revenue sources or
make severe cuts. She voiced opposition to the sunset clause, since the problem is
ongoing and needs an ongoing funding source.
Ranniger commented on the phenomenal community engagement in this budget
process, reiterated that several revenue streams have been lowered and others have
disappeared while costs have gone up, and that the city has had to make some
painful decisions. She said the B & O tax is a compromise, but it's a start.
The motion to adopt Ordinance Nos. 4052 and 4053 carried 6-1 with Albertson,
Boyce, Higgins, Perry, Ralph, and Ranniger in favor, and Thomas opposed.
BIDS
A. 2012 Vehicle Detector Loops Project. (CFN-171) Public Works Director
LaPorte explained the project and recommended award to the low bidder. Albertson
moved to award the 2012 Vehicle Detector Loops Project to Totem Electric of Tacoma
in the amount of $117,874.08 and authorize the Mayor to sign all necessary
documents, subject to final terms and conditions acceptable to the City Attorney and
Public Works Director. Ralph seconded and the motion carried.
REPORTS
A. Council President. (CFN-198) Higgins reported on the discussion which took
place at today's workshop and noted that there will be an additional workshop from
5:30-8:30 p.m. on October 23ra
B. Mayor. (CFN-198) No report was given.
C. Administration. (CFN-198) Hodgson announced that City Clerk Brenda ]acober
will retire at the end of this year, and that she has been with the City of Kent for 37
years, the last 21 as City Clerk.
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Kent City Council Minutes October 16, 2012
D. Economic & Community Development Committee (CFN-198) No report was
given.
E. Operations Committee (CFN-198) No report was given.
F. Parks and Human Services Committee (CFN-198) Ranniger noted that the
next meeting will be held on October 18.
G. Public Safety Committee. (CFN-198) No report was given.
H. Public Works Committee. (CFN-198) Albertson reported that the next
meetings will be on October 22 and November 5.
I. Regional Fire Authority. (CFN-198) Thomas said the budget will be discussed
at a meeting at 5:30 tomorrow.
ADJOURNMENT
The meeting adjourned at 9:40 p.m. (CFN-198)
Brenda Jacober, CNIAe
City Clerk
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