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HomeMy WebLinkAboutCity Council Committees - Operations - 10/14/1988 OPERATIONS COMMITTEE MINUTES October 14; 1988 IV L�(� .D COUNCIL MEMBERS PRESENT. Christi Houser Paul Mann OCT Z 4 1988 Steve Dowell CITY OF KENT Berne Biteman CITE' CLERK STAFF PRESENT: Brent McFall ��\ Tony McCarthy Sandra Driscoll Jim Hansen Charlie Lindsey Tom Vetsch Terry Mertes OTHERS PRESENT: Gary Ewing, Rabanco; Nels Johnson, Rabanco; Doug Clappenbaugh, Sound Ventures; Jim Torina, Northwest Corporate Realty APPROVAL OF VOUCHERS All claims for the period ending October 14, 1988, in the amount of $1 ,581 ,232.00 were approved for payment. REQUEST FOR FUNDS FOR KING COUNTY 2000 City Administrator McFall presented a memo from Council President Jim White requesting a contribution of $500 from the City of Kent for the King County 2000 Phase II Program. Brent noted that the original request had been for $5,000 and that money had been obtained from the Port of Seattle, City of Seattle and King County but that Jim felt that a $500 allocation from the City was more appropriate. Council member Biteman commented that if allocations were made on a per capita basis, the City of Kent's amount would be less than $500. But the Committee decided to go along with the recommendation of Council President White and appropriate $500 from the General Fund. PURCHASE & SALE AND LEASE AGREEMENTS FOR THE OFFICE BUILDING PROJECT City Administrator McFall noted that tentative agreement had been reached with the developers on a purchase and sale agreement and on a City property lease agreement on City office space. On the purchase and sale agreement, the key points would be that: 100,00 Operations Committee Minutes October 14, 1988 Page 2 the price of the property would be determined by three appraisers, one appointed by the City, one appointed by the developer with those two appraisers appointing a third; the sale would be contingent on the City's review and approval ,of the plans and compatibility of the plans to City Hall and the area; parking be provided with a minimum of two spaces per 1 ,000 square feet; the development would be in substantial conformance with response to the City's request for information; the City obtain Bond Council opinion on debt capacity; and the City enters into a lease for office space. The developer contingency related to: having a feasibility study on the project; financing be obtained; clear titles for the property be obtained; the land purchased from St. Anthony's or that some alternative provision be made; the necessary building permits being obtained; and the physical conditions of the property soils etc. have been met. With respect to the lease agreement, the City would acquire 200000 square feet for a lease term of 10 years with two 5-year options. The full service lease for the initial 5 years would be $16 per square foot and for the sepond 5 years would be $18.40 a square foot. Both periods would include $4 per square foot for full service of utilities, maintenance, security etc. The developer, would make all tenant improvements to the City's satisfaction including handicapped access, parking would be provided for City cars and for light trucks, tie building would have access 24 hours a day 7 days a week, signs would meet City. si,gn standards, there would be appropriate City directory information, that there would be a hold harmless agreement and the City would have the option to purchase the property at the loth and 20th year with a value estimated by appraisal . The Council Committee members discussed the process for selecting three appraisals and determining whether those appraisal were in linb,with each other and it was noted if appraisal exceeds the average by 10 percent or more it is Operations Committee Minutes October 14, 1988 Page 3 thrown out with the average computed from the remaining two. It was also noted that a performance, bond would not be required since this is not a City project but a developer project. It was also discussed whether the City could purchase the property at other than 10 and 20 year intervals and it was noted that the City could purchase the property at anytime it wants, competing with others that might be desirous of purchasing but in any scenario would have the option at the loth and 20th year to purchase based upon an appraisal . Based on a question about the use of the proceeds, City Administrator McFall noted that he would plan to reinvest the proceeds from the sale of the land in other capital acquisitions rather than using it to make the annual lease payments of approximately $320,OU0 per year. Following some of this discussion, it was decided th4t the entire item would be brought to the Council under Other Business so that the full Council could hear the benefit of the discussion of these and other issues, RECYCLING CONTRACT City Administrator McFall noted that a number of months ago the,City Council approved the recycling agreement with Rabanco but since that tine two issues have surfaced that caused a slight change in that contract. First of all , plastics are now a recyclable item and therefore can be included in the recycling stream and second the staff is requesting based upon a Rabanco concern that the contract be extended from the initial 18 month period to a 5 year period. The reason for this is a ruling by an Administrative Law Judge of the WUTC whereby the City has been divided up for garbage collection. This ruling possibly prohibits the cost of recycling from being recaptured within the garbage rate structure as originally proposed. Therefore, a five year period is needed for cost recovery. It was noted that this proposal has already been looked at and recommended by the Public Works Committee and even though the City will be subsidizing the program for five years, the subsidy will be paid for through the portion of the garbage utility tax that is deposited in the Environmental Mitigation Ftund. The City will also receive a grant from King County of $20,000 to help offset the annual costs which are anticipated to be in the $60,000 a year range. Operations Committee Minutes October 14, 1988 Page 4 In a similar recycling issue, Councilman Mann asked the City AdMinistrator to draft a letter to King County Executive Tim Hill thanking him for his change of heart with respect to incineration and his effort to spend more of his energy in the recycling area. Brent noted that Sandra has been drafting Such a letter for the Mayor's signature. Councilman Biteman noted that the City has had a long standing practice of voluntary recycling, and he was excited about continuing this and allowing people to reduce their garbage rates by recycling more and more of their household waste. CITY OF KENT AUDIT REPORT Finance Director McCarthy distributed to the Committee a copy of the opinion letter from the recently received City of Kent audit. The audit gave the City a clean opinion on its financial statements for 1987. 66F-Ol F