HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 12/09/2014 KENT
Kent City Council Workshop Minutes
December 9, 2014
The workshop meeting was called to order at 5:02 p.m. by Council President Ralph.
Councilmembers present: Ralph, Berrios, Boyce, Fincher, Higgins, and Thomas.
Councilmember Ranniger was excused.
Information Technology (IT) Outage Incident Report — Michael Carrington,
Information Technology Director handed out an informational memorandum and
timeline of the power and system outage that occurred on November 11, 2014.
Carrington specifically explained what occurred.
Councilmember Higgins discussed the fact that the battery backup failed five minutes
before staff from Facilities arrived at Station 74 to restart the generator.
Councilmember Fincher clarified how IT gets notified that the system is down and
Carrington responded that there are two primary categories of notifications. First, the
generator and generator related systems are maintained by Facilities and the data
center and cooling for the data center are IT's responsibility. He stated that when
there are issues with the temperature or transfer of data from the data center an IT
staff member is notified. He also noted that Facilities gets notified when generators
and other systems fail. Carrington also communicated that the City is working
interdepartmentally to determine what enhancements can be made.
Jeff Watling, Parks and Recreation Director communicated that the margin of
response is 20 minutes and the notification is through a "human element". He stated
that the intent is to install an automated system that tests itself weekly and if there is
a problem during the test, if it is possible, the system restarts itself and a person is
notified.
Councilmember Fincher confirmed that the testing, managed by Facilities, would be in
place. Additionally, Watling stated that the staff at Station #74 is aware of the
location of the generator and its purpose.
Carrington continued discussing the specifics of the timeline.
Councilmember Berrios confirmed that Carrington was notified about the outage and
system failure around midnight.
i
Councilmember Boyce confirmed that the capacity for the battery arrangement was
20 minutes and the staff goal is to have a battery with a one hour capacity. He also
noted that there is an existing project to replicate the system that is at Station #74.
Watling communicated that the plan is to have the one hour backup battery system
installed by the end of 2015.
Carrington communicated the takeaways of the event. He noted that after March
2015 the IT environment will be better positioned to significantly reduce downtime
after an event like this one.
Kent City Council Workshop Minutes December 9, 2014
Carrington confirmed that IT has a business continuity plan for all departments which
highlight the order that systems will come back up and which are detrimental to
department operations.
Watling communicated that the post discussions have gone very well and they have
determined what needs to happen with new systems.
Carrington replied to Councilmember Thomas that he notified Matheson around 8 a.m.
that morning that the system was out.
Councilmember Fincher confirmed that the City has data stored in both data centers
and staff is currently working to migrate some of the data to a third party data
storage center. Carrington added that he is interested in "cloud" resources and also
noted that there have been some issues at a couple offsite data centers in the news
recently.
Councilmember Berrios thanked Carrington for his report and asked what the greatest
risk was that the City faced during the occurance. Carrington responded that there
was the potential for a firefighter at the facility to turn the generator on by simply
flipping a switch. He explained that there is a process that needs to be adhered to in
order to restore systems and simply flipping the switch wouldn't have been the proper
way. He added that some training needs to be administered, and there have been
some significant changes done to deter this from happening again.
Carrington moved to his next topic. He passed out a sheet highlighting the IT staffing
plan and stated there are some significant skills and core competencies missing in the
department.
Councilmember Berrios confirmed that there is staff capable of handling multiple
roles. Carrington responded that there are, but there are times that both of the roles
won't mesh together well, such as having an employee program and test at the same
time.
Councilmember Boyce confirmed that the IT department has 25 employees and is
understaffed by 18.
Council consensus was to continue the conversation concerning IT staff at a later
date.
Public Facilities District Contingent Loan and Support Agreement - Aaron
BeMiller, Finance Director communicated that this topic was discussed at the
Operations Committee meeting on December 2, 2014. He noted that the Public
Facilities District (PFD) was created in 2007 and issued $63.3 million in debt for the
construction of the ShoWare Event Center. The PFD and the City signed a contingent
loan and support agreement regarding financing for Kent Special Events Center.
BeMiller continued and highlighted the ShoWare financial debt/financial flow chart. He
communicated that the City owns the asset and the debt is only shown on the City
books. In 2014, the City is paying debt with the funds from Parks. He noted that the
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Kent CityCouncil Workshop Minutes December 9 2014
P
City has paid $18.5 million towards the PFD debt service. Consistent with Generally
Accepted Accounting Principles (GAAP), the City has never recognized any of these
contributions as a loan receivable on City financials nor as a payable on the PFD
financials. He noted that every year the State Auditor's Office (SAO) has given an
unqualified (clean) opinion of the PFD financials. However, this year the PFD received
an audit finding from SAO in 2013. Therefore, he said, the City is proposing that the
language in the contingent loan and support agreement between the City and the PFD
be formally changed to note that the contributions towards the PFD debt service are a
subsidy, not a loan.
Councilmember Thomas verified that the item from the SAO was a finding and that
the SAO communicated that the funds must be identified as a loan payable.
Councilmember Berrios stated that the loans were taken out and only 18 percent has
been paid by the PFD and the City has paid back 82 percent thus far. He verified with
BeMiller that under this agreement the PFD will not be responsible for the loan and
will never be able to pay back the loan.
Council President Ralph communicated that the language was put into the agreement
back then because the assumption was that the facility would be able to pay back the
loan over time and that the facility would be receiving more revenues than it currently
is.
Councilmember Higgins confirmed with City Attorney Brubaker that a feasibility study
was conducted when the facility was being considered and it concluded that the
facility would derive enough funds to pay for itself.
Councilmember Boyce confirmed that this would allow the City to forgive the debt of
the PFD and there would not be any repayment from the PFD.
BeMiller added that this isn't easy and there are some pros and cons on both sides.
However, from an accounting perspective this is the best way to handle this, he said.
Councilmember Boyce confirmed that under this there is no expectation of repayment
of the loan.
Council President Ralph confirmed with BeMiller that as the Treasurer of the PFD and
the City Finance Director the funds that were given to the PFD were not produced as a
loan.
Matheson explained that between the time the contingent agreement was signed and
the first debt payment was due the crash of the stock market occurred.This recession
greatly changed the ShoWare Center financials and the ability of the center to cover
operational costs and the ability of the PFD to pay back the loan.
I
Councilmember Berrios confirmed that the original size of the building, based on the
feasibility study, was for 6,500 seats. He noted that he sat in a meeting of the PFD
five years ago where it was said that the facility was going to raise $500,000 per
year. He added that the City could keep doing what it is doing and the PFD and the
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Kent City Council Workshop Minutes December 9, 2014
City would have to make changes to how the reporting is done on the financials.
BeMiller communicated that if the Council affirms the stance that the monies going to
the PFD are a loan and can be repaid, the City would have to note a loan receivable
and a counter account and an allowance for doubtful accounts in the amount of $18
million. He said if the City reported the funds as an asset that wasn't being paid back
it would cause the City problems. This would have to be a detailed notice
communicating that the funds would be offset to fairly present the City's books.
Councilmember Berrios asked if there could be an expectation set to have some funds
reimbursed if the PFD can do so at a later time. BeMiller responded that the
agreement would need to be ratified to include that some funds would come back to
the City. Brubaker added that the PFD board would also have to agree and approve
any revisions to the agreement.
Council President Ralph summarized the status of this item. She stated this was
brought to the Council to discuss and pondered if there should be a small citizens
advisory committee established, a group hired to study the facility, or some other
option discussed or brought in to assist with this.
Councilmember Berrios communicated that he would be uncomfortable voting on this
until every option is investigated.
BeMiller communicated the impact of not changing language. He stated that the result
is a net zero impact to the City financials overall with an inclusion of "allowance"
account. The negative impact will be that the City will be required to create an
allowance for doubtful accounts and annually add note disclosure explaining this
account. There could be potential questions from Government Finance Officers
Association (GFOA), rating agencies, and the SAO to include negative impacts to the
PFD financials, he added. Basically, the question from those agencies would be why
does the City still treat this as a loan when no money is coming in to repay it. He also
stated that the loans will eventually need to be written off.
Mike Miller, Board Chair of the Public Facilities District communicated that if the City
went to the bond council for a rating they would laugh at the City if this was noted as
an "allowance for doubtful accounts". He added by not taking it off the City would be
misrepresenting the loan.
Councilmember Boyce inquired what Miller would do and he replied that it shows red
flags if it continues to be shown as a receiveble on the City's books. He communicated
that if the ShoWare begins to show profit those funds would go to pay debt and would
show up as a loan payable. He noted that he cares that it is accounted for properly
and doesn't understand the logic of the SAO on this item.
Councilmember Berrios stated that he appreciates the conversation and it has some
serious implications, especially to the City's bond rating. He verified that the City
would need to present on both sides of the City and PFD books, accounts receivable
and payable, by the end of the year if the Council affirms that the loans will be paid
off.
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Kent City Council Workshop Minutes December 9, 2014
BeMiller confirmed that if this was to be done it would forgive the $15 million payable
for 2014 and if the language is revised the debt will be written off in the future.
Councilmember Thomas discussed accepting partial payment and what would happen
if there is a new SAO team next year and notes the same issue. BeMiller responded
and stated that the SAO has indicated that they want to see something done with this
and that it doesn't matter if a different team audits the City next year.
Councilmember Berrios replied that if this agreement is executed there wouldn't need
to be a payment.
BeMiller noted that the facility doesn't have any assets except for the facility.
Brubaker communicated that the agreement states that all profits from operations of
the facility go towards debt and that could only occur if the sales tax revenue was
significantly higher and the facility could repay the loan.
Ben Wolters, Economic and Community Development Director communicated that it is
important for the City staff to understand what the Council wants them to do. He said
that having an advisory group would be fine and the effects of having an evaluation
needs to be understood. He explained that it may be communicated that there are
issues and the marketplace would also get the same negative perception. Wolters
further noted that the length of the contract between the City and the PFD is 30 years
and it was put in place prior to the recession and streamlined sales tax. He stated that
the idea was to be open back then and the recession changed things. There is true
accounting which speaks to the quick recognition of that change, he said. The
agreement allowed for potential, depending on sales tax and some other items. The
facility is being booked in an accurate manner, he concluded.
Councilmember Higgins communicated that he didn't know the language was noted as
a loan in the agreement and that he has no problem noting in the agreement that it
isn't. He felt there needs to be a future discussion about the ShoWare. He added that
he believes SMG is doing the best it can and the Council just executed their new
agreement. He added that the intent is to get the best for the residents in the City.
He noted that he is a taxpayer too and wants the best for the City. He noted that this
is a result of the state auditor and they want the City to change the way the City
accounts for what it has been doing.
Councilmember Berrios communicated that he met with the General Manager of SMG
and they are trying to do their best with the facility. He stated that he is asking for a
delay in this decision so it can be reviewed at length. He said the Council owes it to
the citizens to not write off $100 million in one meeting.
Council President Ralph communiated that just because the discussion is going on, it
doesn't mean the Council doesn't value the facility. She stated that she wants to put
this conversation to rest and wants to consider what can be done.
Wolters communicated that he would like the experts from SMG brought in to discuss
their recommendations as to what can be done differently. The options going forward
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City Kent
n y Council Workshop Minutes December 9, 2014
are to hire a third-party who understands the marketplace in the Northwest and there
are a lot of assumptions that were reasonable in 2006 that are not reasonable now.
He waned to inquire what stones are not turned over.
Councilmember Boyce said that he needs more time to process this and said the
concept seems to make sense.
Councilmember Higgins communicated that the only thing that has changed for him is
that this is identified as a loan and doesn't have any issues with making it a
contribution.
Councilmember Fincher said that she doesn't have any problem with the contribution
and wants to ensure the excess funds are going to the City, which is in the contract.
Councilmember Berrios thanked the Operations Committee for bringing this to the full
Council at the workshop. He appreciated the opportunity to hear this. He stated that
this needs to be called what it is and there is never a guarantee anything will be
adopted since the PFD board has to hear it too. He felt there needs to be more
discussion and the wording of the agreement has to be finalized. He stated there
should be some hope left that the funds would be paid back.
Council President Ralph communicated that this item will go to Operations Committee
and it will be on Other Business at the Special Meeting. She noted that it can be
pulled at the Special meeting if need be.
Miller communicated that the language would need to be approved and Brubaker
added that both entities would need to approve any revised agreement.
The meeting adjourned at 6:48 p.m.
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KENT
Kent City Council Meeting Minutes
December 9, 2014
The regular meeting of the Kent City Council was called to order at 7:00 p.m. by
Mayor Cooke.
Councilmembers present: Ralph, Berrios, Boyce, Fincher, Higgins, and Thomas.
CHANGES TO THE AGENDA FROM COUNCIL, ADMINISTRATION, OR STAFF.
�I
Chief Administrative Officer Derek Matheson recommended adding an executive
session for property negotiations, as per RCW 42.30.110 (1) (c) and removing consent
calendar, item 7Z, Lease Agreement with New Cingular Wireless PCS, LLC for Wireless
Communications Equipment at Hogan Park at Russell Road - Authorize.
PUBLIC COMMUNICATIONS.
A. Public Recognition - Councilmember Higgins introduced Christine Taing, a 12
year old Meridian Middle School student, who wrote The Little Flower. He noted that
the book was about her experiences with bullying and some short stories that describe
ways to deal with bullying in school and in life. He introduced her mother and father
and Christine thanked her parents and the Council for the recognition.
Mayor Cooke suggested Christine serve on the Kent Police Youth Board and Council
President Ralph highlighted the events and purpose of the board.
B. Community Events - Mayor Cooke thanked the Lions Club for their event at the
library and the Christmas tree lighting ceremony. She also noted that Christmas Rush
is this weekend.
C. Proclamation for Combatting Commercial Sexual Exploitation through
Comprehensive Demand Enforcement. Deterrence, and Prevention - Mayor
Cooke read and presented the proclamation to Robert Beiser, Executive Director of
Seattle Against Slavery. Beiser discussed his background and what he has witnessed in
his seven year tenure with the organization. He thanked Mayor Cooke and the Council
for the proclamation and noted that the City of Kent is in the lead when it comes to
combatting this issue.
D. Appointments to the Land Use & Planning Board - Mayor Cooke announced
that Binoy Varughese was a new appointment and Randall Smith and Jack Ottini were
reappointments to the Land Use & Planning Board.
E. Intergovernmental Reports - Council President Ralph stated that last week she
attended a Regional Law Safety and Justice Committee meeting and the topic was
mental health and its interaction with the court system. She noted that there will be
some drastic cuts in mental health funding coming from the State which means a
reduction in beds and places to treat those that are mentally ill in the criminal justice
system. She explained that it can take four to six months to get the competency of a
person in the criminal justice system determined. She said if that takes place here in
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Kent City Council Meeting Minutes December 9, 2014
Kent, normally the entire sentence is served prior to the competency being
determined. Therefore, she said the conversation was on how to create additional
treatment beds and divert these people out of jail and into treatment. She noted the
discussion was encouraging and there is some progress going on in the county and
local jurisdictions to establish new beds. She concluded and noted that the South
County Area Transportation Board (SCATBD), King County Regional Transportation,
and the Transportation Policy Board meet next week.
Councilmember Higgins communicated that the Sound Cities Association (SCA) is the
umbrella group for 36 cities in King County, which Kent is the largest. The SCA fights
to get its fair share of resources from the county, state, and other organizations. He
noted that the Board of Directors met last week and the 2015 budget was accepted.
He added that the group reviewed their 2014 accomplishments, one which was
obtaining new seats on the Puget Sound Air Agency Board of Directors. He noted that
they are also working to get more seats allocated on the Puget Sound Regional Council
(PRSC) board. He added that the Regional Transit Committee met and postponed the
adoption of the King County Metro's crowding standards, in lieu of the reformation of
the Regional Transit Task Force that Mayor Cooke served on a few years ago. He
stated that the PSRC Ad Hoc Transportation Committee meets this week and will
discuss what would happen if the legislature doesn't adopt a transportation package in
the 2015 session.
Councilmember Fincher communicated that the King Conservation District (KCD) work
plan and budget were accepted and passed by the King County Council and their
December meeting was cancelled. The next KCD meeting is in June, she said.
Councilmember Boyce announced that the Sound Cities Association (SCA) Committee
has their next meeting tomorrow.
PUBLIC HEARINGS
A. None.
PUBLIC COMMENT
1. Eric Bernard, Kent - Bernard discussed an increase in property taxes in Kent. He
stated that in 2010 the budget was $158 million when the fire department was taken
off the books and currently the City's budget is $159 million. He expressed concerns as
to why the $25 million cost reduction for the fire department wasn't reflected in the
budget. He discussed banked capacity and noted that the City can still levy $2 per
$1,000 in property tax assessments. However, he stated that the residents are already
paying that to the Regional Fire Authority.
2. Dwayne Pollich, Bothell - Pollich discussed the proposed FM radio station. He noted
that he has experience with radio stations and offered his assistance to the City.
Mayor Cooke replied that the Council, and she concurred, are not proceeding with
having a radio station. Council President Ralph added that the City doesn't have the
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Kent City Council Meeting Minutes December 9, 2014
budget to fund a study and the City has 18 months to apply for an extension if funds
become available.
CONSENT CALENDAR
Council President Ralph moved to approve Consent Calendar Items A through
EE with the removal of Item Z, seconded by Councilmember Thomas. Motion
carried 6-0.
A. Minutes of Previous Meetings and Workshops - Approve - The minutes of the
Council special meeting of October 14, 2014 and the workshop meeting of October 21,
2014 were approved.
B. Approval of Bills - Payment of the bills received through October 15 and paid on
October 15 after auditing by the Operations Committee on November 18, 2014 were
approved. Payment of the bills received through November 15 and paid on November
15 after auditing by the Operations Committee an December 2, 2014 were approved.
C. Excused Absence for Councilmember Deborah Ranniger - Approve - The
Council approved an excused absence for Councilmember Ranniger as she was unable
to attend the City Council meeting of December 9, 2014.
D. Appointments to Land Use & Planning Board - Confirm - The Council
confirmed the Mayor's appointment of Binoy Varughese and reappointment of Randall
Smith and Jack Ottini to the Land Use & Planning Board.
E. Resolution Authorizing Investment of Available Monies in the Local
Government Investment Pool - Adopt - Resolution No. 1901, authorizing the
investment of City of Kent monies into the local government investment pool was
adopted.
F. 2015 State Legislative Agenda - Approve - The Mayor was authorized to
approve the 2015 Legislative Agenda.
G. Consolidating Budget Adjustment Ordinance for Adjustments Between
July 1, 2014 and September 30, 2014 - Adopt - Ordinance No. 4130, approving
the consolidating budget adjustment ordinance for adjustments made between July 1,
2014, and September 30, 2014, reflecting an overall budget increase of $10,777,812
was adopted.
H. 2014 - 2017 Administrative Services Agreement with Vision Service Plan -
Authorize - The Mayor was authorized to sign a three-year Agreement with Vision
Service Plan to administer the City's self-insured vision plan, with an estimated annual
cost inclusive of vision claims and administrative fees of $115,000, subject to final
contract terms and conditions acceptable to the Human Resource Director and the City
Attorney, and ratify all acts consistent with the Agreement and this authorization.
I. 2015 - 2017 Administrative Services Agreement with Delta Dental of
Washington - Authorize - The Mayor was authorized to sign a three-year Dental
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Kent City Council Meeting Minutes December 9, 2014
Care Service Contract with Delta Dental of Washington to administer the City's self-
insured plan for dental services with an estimated annual cost inclusive of dental
claims and administrative fees of $868,277, subject to final contract terms and
conditions acceptable to the Human Resource Director and the City Attorney.
J. 2015 Medical Coverage Renewal Agreement with Group Health Cooperative
- Authorize - The Mayor was authorized to sign a contract renewal for medical
coverage with Group Health Cooperative during 2015 in an amount not to exceed
$510,000, subject to final contract renewal terms and conditions acceptable to the
Human Resource Director and the City Attorney.
K. 2015 - 2017 Administrative Services Agreement with Premera Blue Cross -
Authorize - The Mayor was authorized to sign a three-year Administrative Services
Agreement with Premera Blue Cross to administer the City's self-insured plan for
medical care, with an estimated annual cost inclusive of medical claims and
administrative fees of $8,900,000, subject to agreement terms and conditions
acceptable to the Human Resource Director and the City Attorney.
L. Millennium Ridge Final Plat- Approve - The Council approved the final plat
mylar for Millennium Ridge and authorized the Mayor to sign the mylar.
M. State Environmental Policy Act (SEPA) Amendments, Ordinance - Adopt -
Ordinance No. 4131, amending the Kent City Code to update the City's base
exemption thresholds related to minor new construction under the State
Environmental Policy Act was adopted.
N. 2015 Water Treatment Chemical Supply Contract with JCI Jones Chemical.
Inc. - Authorize - The Mayor was authorized to sign the 2015 Water Treatment
Chemical Supply Agreement with JCI Jones Chemicals Inc. for gas chlorine and sodium
hydroxide in an amount not to exceed $93,981.20, subject to final terms and
conditions acceptable to the City Attorney and Public Works Director.
O. 2015 Water Treatment Chemical Supply Contract with Cascade Columbia
Distribution - Authorize - The Mayor was authorized to sign the 2015 Water
Treatment Chemical Supply Agreement with Cascade Columbia Distribution for Sodium
Fluoride in an amount not to exceed $34,000.00, subject to final terms and conditions
acceptable to the City Attorney and Public Works Director.
P. 2015 Business & Occupation (B&O) Project List - Approve - The Council
approved the street improvement project list recommended by the Public Works
Director and payment of these project costs, except as may be supplemented by grant
funds or additional Council authorization, from the 2015 Business and Occupation Tax
receipts.
Q. Puget Sound Energy (PSE) Construction Agreement for James/Russell
Road Levee Improvements - Authorize - The Mayor was authorized to sign two
cost revision change orders with Puget Sound Energy for the James Street/Russell
Road Realignment Project, upon terms acceptable to the Public Works Director and
City Attorney
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Kent City Council Meeting Minutes December 9, 2014
R. Consultant Services Agreement with Shannon & Wilson, Inc. for the Mill
Creek Re-Establishment Project - Authorize - The Mayor was authorized to sign a
Consultant Services Agreement with Shannon & Wilson, Inc. in an amount not to
exceed $49,892 for wetland and stream delineation and biological evaluation services
for Mill Creek, subject to final terms and conditions acceptable to the City Attorney and
Public Works Director.
S. Consultant Services Agreement with AMEC Environment and Infrastructure
for a Sediment Study for the Mill Creek Re-Establishment Proiect - Authorize
- The Mayor was authorized to sign a Consultant Services Agreement with AMEC
Environment and Infrastructure in an amount not to exceed $83,911 for a sediment
study of Mill Creek, subject to final terms and conditions acceptable to the City
Attorney and Public Works Director.
T. 2014 Thermoplastic Markings Project - Accent as Complete - The Mayor was
authorized to accept the 2014 Thermoplastic Markings as complete and release
retainage to Apply-A-Line, Inc., upon receipt of standard releases from the state and
the release of any liens.
U. 2014 Asphalt Overlays Project - Accept as Complete - The Mayor was
authorized to accept the 2014 Asphalt Overlay Project as complete and release
retainage to Icon Materials Inc., upon receipt of standard releases from the state and
the release of any liens.
V. 2015 - 2017 Indigent Counsel Agreement - Authorize - The Mayor was
authorized to sign the Agreement for indigent defense services with Stewart
MacNichols Harmell, Inc., P.S., subject to final terms and conditions acceptable to the
Parks Director and the Human Services Division's advising attorney.
W. Interlocal Agreements with Maple Valley for Court and Jail Services -
Authorize - The Mayor was authorized the Mayor to sign the Interlocal Agreements
between the City of Maple Valley and the City of Kent for both Jail and Municipal Court
Services, subject to final terms and conditions acceptable to the City Attorney.
X. 2014 4Culture Sustained Support Grant Agreement - Authorize - The Mayor
was authorized to accept the Sustained Support Grant Agreement from 4Culture in the
amount of $17,000 to support the Kent Arts Commission's 2014 programs, to sign all
necessary grant documents, and to amend the budget and authorize expenditure of
the funds in accordance with final grant terms and conditions acceptable to the Parks,
Recreation and Community Services Director and City Attorney.
Y. Performance-Based Contract with McKinstry Essention, LLC, Energy
Services for HVAC at Riverbend Golf Complex - Authorize - The Mayor was
authorized to sign the Energy Services Performance-Based Contract with McKinstry
Essention, LLC, in an amount not to exceed $752,796, subject to final terms and
conditions acceptable to the Parks, Recreation and Community Services Director and
City Attorney.
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AA. 2015 - 2016 State Lobbyist Consultant Services Agreement with
Outcomes by Levy, LLC - Authorize - The Mayor was authorized to sign a
Consultant Services Agreement for lobbying services during the 2015 - 2016
legislative sessions with Outcomes by Levy, L.L.C., in an annual amount of $69,600,
plus agreed upon expenses, subject to terms and conditions acceptable to
Administration and the City Attorney.
BB. Wilson Playfields Synthetic Turf Replacement Project - Accept as
Complete - The Mayor was authorized to accept as complete, the Wilson Playfields
Synthetic Turf Replacement project and release retainage funds in the amount of
$79,504.21 to King County Director's Association.
CC. Boeing Secondary Levee and Floodwall - Accept as Complete - The Mayor
was authorized to accept the Boeing Secondary Levee and Floodwall as complete and
release retainage to Quigg Brothers, Inc., upon receipt of standard releases from the
state and the release of any liens.
DD. SR 516 to S 231st Way Levee Improvements - Accept as Complete - The
Mayor was authorized to accept the SR 516 to S. 231st Way Levee Improvements as
complete and release retainage to SCI Infrastructure, LLC upon receipt of standard
releases from the state and the release of any liens.
EE. Consultant Services Agreement with GeoEngineers, Inc. for
Geotechnical Services Phase I & II of the S 224th Street Corridor Project -
Authorize - The Mayor was authorized to sign the Consultant Services Agreement
with GeoEngineers, Inc. in an amount not to exceed $98,937 to provide geotechnical
services for the South 224th Street Improvement Project, subject to final terms and
conditions acceptable to the Public Works Director and City Attorney.
OTHER BUSINESS
A. Ordinance Acknowledging the Merger of tw telecom, inc. and Level 3
Communications - Introduce - Tom Brubaker, City Attorney highlighted the item.
He noted that the two companies are merging and under federal law the item must be
introduced and adopted at two separate Council meetings. He added that no franchise
conditions change under the current agreement.
B. Puget Sound Emergency Radio Network Interlocal Agreements - Authorize
- Tom Brubaker, City Attorney communicated that currently in King County the
various public safety agencies don't operate under the same radio bandwidth, nor do
they have the same systems. This proposal is from all the 911 public safety providers
in King County to create a new unified bandwidth radio communication system called
the Puget Sound Emergency Radio Network. He added that this system will give a
single bandwidth throughout the county so if there is an emergency all the agencies
can communicate with each other and provide assistance. This proposal is subject to
the passing of a $225 - $250 million bond measure this spring to complete this
project. He stated that the Council has two agreements to consider. One is an
implementation agreement which, if the bond passes, operates between the various
parties to buy, build, and design the radio network. The second document is a
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Kent City Council Meeting Minutes December 9, 2014
memorandum of agreement which stipulates some of the basic tenants on how the
cities involved will operate. He noted that there are essentially only four parties
involved in this agreement; 1) Valley Communications Center, which represents Kent,
Auburn, Renton, Tukwila, and Federal Way, 2) Eastside Public Safety Communications
Agency (EPSCA), which represents Bellevue, Redmond, Kirkland, Mercer Island, and
Issaquah, 3) King County, and 4) the City of Seattle.
Councilmember Higgins confirmed that this isn't obligating any City funds at this time.
He added that all of this is contingent on the passing of the bond. Brubaker also
explained that if the bond does pass the cost of maintenance to the system is about
$250,000 per year and he guessed that the cost is more than the City pays now, but
the system will be substantially better. Brubaker noted that the cost of the system
would be spread throughout all of the cities in King County.
Councilmember Thomas authorized the Mayor to sign the implementation
interlocal agreement and the operational Memorandum of Agreement for the
Puget Sound Emergency Radio Network, subject to final terms and conditions
acceptable to the City Attorney, seconded by Councilmember Boyce. Motion
carried 6-0.
C. General Commercial-Mixed Use (GC-MU) Zoning Code Amendment,
ordinance - Adopt - Ben Wolters, Economic and Community Development Director
introduced this proposed change based on some recent changes in the real estate
market. He noted that the goal of this is to preserve options for future growth within
downtown Kent in a mixed use variety. Wolters stated that as a part of the Downtown
Strategic Action Plan the Council adopted a zoning code amendment to reduce the
minimum amount of commercial development required within the mixed use zoning
from 25 percent to 5 percent. Additionally, the boundary of downtown was expanded
further west to include the area around Washington Boulevard. At that time, he said
the presumption was that commercial development would be the primary need. Now,
based on a change in the marketplace, multifamily housing could outpace commercial
development to the west. He noted that it is important to preserve general commercial
mixed use (GC-MU) and highlighted the Kmart site as a possible site for this type of
development. He recommended the commercial development requirement be moved
back to 25 percent.
Erin George, Senior Planner communicated that the 25 percent is calculated as a
percentage of gross floor area. She added that commercial and residential could be in
separate buildings on one site. She summarized that this proposal is to increase the
minimum commercial requirement in the general commercial mixed use zone back to
25 percent in downtown only and all of the other GC-MU areas outside of downtown
would have a 5 percent commercial requirement.
Wolters explained that this is on other business because it has been approved by the
Land Use & Planning Board and it was briefed to the Economic and Community
Development Committee which was scheduled to have a meeting but this would have
been the only agenda item. Therefore, based on the marketplace and the sensitivity
the decision was to bring this to the Council under Other Business.
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Kent City Council Meeting Minutes December 9, 2014
Council President Ralph thanked the staff and confirmed that there wasn't any public
comment and passed the Land Use & Planning Board unanimously.
Councilmember Boyce moved to adopt Ordinance No. 4132, amending KCC
15.04.200, entitled "Mixed Use Overlay Development Standards," with related
amendments to the definition of "mixed use development" in KCC 15.02.260,
seconded by Councilmember Higgins.
BIDS
None.
REPORTS FROM STANDING COMMITTEES, STAFF AND SPECIAL COMMITTEES
A. Council President. Council President Ralph discussed the workshop discussions.
She said the power outage that occurred on November it which shut down the City's
information technology system was discussed, to include lessons learned and what can
be done going forward. The second item, she stated, was the Public Facilities District
Contingent Loan and Support Agreement. She said this is an accounting item relating
to ShoWare Center. The Public Facilities District that was formed as a part of the
building of ShoWare and whether or not the money that is being put into the ShoWare
Center to help support the debt payment is a subsidy from the City or a loan the Public
Facilities District has that the City needs to address repayment. She noted that this a
fairly complicated issue, but the bookkeeping outcome is that if it is debt it needs to be
reported as such in the budget and if it is not going to be paid back to the City it needs
to be reported as such.
B. Mayor.
C. Administration. Chief Administrative Officer Derek Matheson communicated that
there will be an executive session for twenty minutes.
D. Economic & Community Development Committee. In the minutes.
E. Operations Committee. In the minutes.
F. Parks and Human Services Committee. No report.
G. Public Safety Committee. No report.
H. Public Works Committee. In the minutes.
I. Regional Fire Authority. No report and no meeting in December.
EXECUTIVE SESSION
At 8:02 p.m., Mayor Cooke reconvened the regular meeting and announced
that the Council would recess into an Executive Session for twenty minutes to
discuss property negotiation as per RCW 42.30.110(1)(c).
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Kent City Council Meeting Minutes December 9, 2014
At 8:22 p.m., Mayor Cooke extended the Executive Session ten minutes.
At 8:25 p.m., the Executive Session concluded and Mayor Cooke reconvened
the regular meeting.
ACTION AFTER EXECUTIVE SESSION
A. Property Negotiation, as per RCW 42.30.110(1) (c) - There was no action
taken after the Executive Session.
ADJOURNMENT
The meeting adjourned at 8:26 p.m.
Ronald F ooMC
City Clerk
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KENT
Kent City Council Workshop Minutes
December 9, 2014
The workshop meeting was called to order at 5:02 p.m. by Council President Ralph.
Councilmembers present: Ralph, Berrios, Boyce, Fincher, Higgins, and Thomas.
Councilmember Ranniger was excused.
Information Technology (IT) Outage Incident Report — Michael Carrington,
Information Technology Director handed out an informational memorandum and
timeline of the power and system outage that occurred on November 11, 2014.
Carrington specifically explained what occurred.
Councilmember Higgins discussed the fact that the battery backup failed five minutes
before staff from Facilities arrived at Station 74 to restart the generator.
Councilmember Fincher clarified how IT gets notified that the system is down and
Carrington responded that there are two primary categories of notifications. First, the
generator and generator related systems are maintained by Facilities and the data
center and cooling for the data center are IT's responsibility. He stated that when
there are issues with the temperature or transfer of data from the data center an IT
staff member is notified. He also noted that Facilities gets notified when generators
and other systems fail. Carrington also communicated that the City is working
interdepartmentally to determine what enhancements can be made.
Jeff Watling, Parks and Recreation Director communicated that the margin of
response is 20 minutes and the notification is through a "human element". He stated
that the intent is to install an automated system that tests itself weekly and if there is
a problem during the test, if it is possible, the system restarts itself and a person is
notified.
Councilmember Fincher confirmed that the testing, managed by Facilities, would be in
place. Additionally, Watling stated that the staff at Station #74 is aware of the
location of the generator and its purpose.
Carrington continued discussing the specifics of the timeline.
Councilmember Berrios confirmed that Carrington was notified about the outage and
system failure around midnight.
i
Councilmember Boyce confirmed that the capacity for the battery arrangement was
20 minutes and the staff goal is to have a battery with a one hour capacity. He also
noted that there is an existing project to replicate the system that is at Station #74.
Watling communicated that the plan is to have the one hour backup battery system
installed by the end of 2015.
Carrington communicated the takeaways of the event. He noted that after March
2015 the IT environment will be better positioned to significantly reduce downtime
after an event like this one.
Kent City Council Workshop Minutes December 9, 2014
Carrington confirmed that IT has a business continuity plan for all departments which
highlight the order that systems will come back up and which are detrimental to
department operations.
Watling communicated that the post discussions have gone very well and they have
determined what needs to happen with new systems.
Carrington replied to Councilmember Thomas that he notified Matheson around 8 a.m.
that morning that the system was out.
Councilmember Fincher confirmed that the City has data stored in both data centers
and staff is currently working to migrate some of the data to a third party data
storage center. Carrington added that he is interested in "cloud" resources and also
noted that there have been some issues at a couple offsite data centers in the news
recently.
Councilmember Berrios thanked Carrington for his report and asked what the greatest
risk was that the City faced during the occurance. Carrington responded that there
was the potential for a firefighter at the facility to turn the generator on by simply
flipping a switch. He explained that there is a process that needs to be adhered to in
order to restore systems and simply flipping the switch wouldn't have been the proper
way. He added that some training needs to be administered, and there have been
some significant changes done to deter this from happening again.
Carrington moved to his next topic. He passed out a sheet highlighting the IT staffing
plan and stated there are some significant skills and core competencies missing in the
department.
Councilmember Berrios confirmed that there is staff capable of handling multiple
roles. Carrington responded that there are, but there are times that both of the roles
won't mesh together well, such as having an employee program and test at the same
time.
Councilmember Boyce confirmed that the IT department has 25 employees and is
understaffed by 18.
Council consensus was to continue the conversation concerning IT staff at a later
date.
Public Facilities District Contingent Loan and Support Agreement - Aaron
BeMiller, Finance Director communicated that this topic was discussed at the
Operations Committee meeting on December 2, 2014. He noted that the Public
Facilities District (PFD) was created in 2007 and issued $63.3 million in debt for the
construction of the ShoWare Event Center. The PFD and the City signed a contingent
loan and support agreement regarding financing for Kent Special Events Center.
BeMiller continued and highlighted the ShoWare financial debt/financial flow chart. He
communicated that the City owns the asset and the debt is only shown on the City
books. In 2014, the City is paying debt with the funds from Parks. He noted that the
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Kent CityCouncil Workshop Minutes December 9 2014
P
City has paid $18.5 million towards the PFD debt service. Consistent with Generally
Accepted Accounting Principles (GAAP), the City has never recognized any of these
contributions as a loan receivable on City financials nor as a payable on the PFD
financials. He noted that every year the State Auditor's Office (SAO) has given an
unqualified (clean) opinion of the PFD financials. However, this year the PFD received
an audit finding from SAO in 2013. Therefore, he said, the City is proposing that the
language in the contingent loan and support agreement between the City and the PFD
be formally changed to note that the contributions towards the PFD debt service are a
subsidy, not a loan.
Councilmember Thomas verified that the item from the SAO was a finding and that
the SAO communicated that the funds must be identified as a loan payable.
Councilmember Berrios stated that the loans were taken out and only 18 percent has
been paid by the PFD and the City has paid back 82 percent thus far. He verified with
BeMiller that under this agreement the PFD will not be responsible for the loan and
will never be able to pay back the loan.
Council President Ralph communicated that the language was put into the agreement
back then because the assumption was that the facility would be able to pay back the
loan over time and that the facility would be receiving more revenues than it currently
is.
Councilmember Higgins confirmed with City Attorney Brubaker that a feasibility study
was conducted when the facility was being considered and it concluded that the
facility would derive enough funds to pay for itself.
Councilmember Boyce confirmed that this would allow the City to forgive the debt of
the PFD and there would not be any repayment from the PFD.
BeMiller added that this isn't easy and there are some pros and cons on both sides.
However, from an accounting perspective this is the best way to handle this, he said.
Councilmember Boyce confirmed that under this there is no expectation of repayment
of the loan.
Council President Ralph confirmed with BeMiller that as the Treasurer of the PFD and
the City Finance Director the funds that were given to the PFD were not produced as a
loan.
Matheson explained that between the time the contingent agreement was signed and
the first debt payment was due the crash of the stock market occurred.This recession
greatly changed the ShoWare Center financials and the ability of the center to cover
operational costs and the ability of the PFD to pay back the loan.
I
Councilmember Berrios confirmed that the original size of the building, based on the
feasibility study, was for 6,500 seats. He noted that he sat in a meeting of the PFD
five years ago where it was said that the facility was going to raise $500,000 per
year. He added that the City could keep doing what it is doing and the PFD and the
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Kent City Council Workshop Minutes December 9, 2014
City would have to make changes to how the reporting is done on the financials.
BeMiller communicated that if the Council affirms the stance that the monies going to
the PFD are a loan and can be repaid, the City would have to note a loan receivable
and a counter account and an allowance for doubtful accounts in the amount of $18
million. He said if the City reported the funds as an asset that wasn't being paid back
it would cause the City problems. This would have to be a detailed notice
communicating that the funds would be offset to fairly present the City's books.
Councilmember Berrios asked if there could be an expectation set to have some funds
reimbursed if the PFD can do so at a later time. BeMiller responded that the
agreement would need to be ratified to include that some funds would come back to
the City. Brubaker added that the PFD board would also have to agree and approve
any revisions to the agreement.
Council President Ralph summarized the status of this item. She stated this was
brought to the Council to discuss and pondered if there should be a small citizens
advisory committee established, a group hired to study the facility, or some other
option discussed or brought in to assist with this.
Councilmember Berrios communicated that he would be uncomfortable voting on this
until every option is investigated.
BeMiller communicated the impact of not changing language. He stated that the result
is a net zero impact to the City financials overall with an inclusion of "allowance"
account. The negative impact will be that the City will be required to create an
allowance for doubtful accounts and annually add note disclosure explaining this
account. There could be potential questions from Government Finance Officers
Association (GFOA), rating agencies, and the SAO to include negative impacts to the
PFD financials, he added. Basically, the question from those agencies would be why
does the City still treat this as a loan when no money is coming in to repay it. He also
stated that the loans will eventually need to be written off.
Mike Miller, Board Chair of the Public Facilities District communicated that if the City
went to the bond council for a rating they would laugh at the City if this was noted as
an "allowance for doubtful accounts". He added by not taking it off the City would be
misrepresenting the loan.
Councilmember Boyce inquired what Miller would do and he replied that it shows red
flags if it continues to be shown as a receiveble on the City's books. He communicated
that if the ShoWare begins to show profit those funds would go to pay debt and would
show up as a loan payable. He noted that he cares that it is accounted for properly
and doesn't understand the logic of the SAO on this item.
Councilmember Berrios stated that he appreciates the conversation and it has some
serious implications, especially to the City's bond rating. He verified that the City
would need to present on both sides of the City and PFD books, accounts receivable
and payable, by the end of the year if the Council affirms that the loans will be paid
off.
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Kent City Council Workshop Minutes December 9, 2014
BeMiller confirmed that if this was to be done it would forgive the $15 million payable
for 2014 and if the language is revised the debt will be written off in the future.
Councilmember Thomas discussed accepting partial payment and what would happen
if there is a new SAO team next year and notes the same issue. BeMiller responded
and stated that the SAO has indicated that they want to see something done with this
and that it doesn't matter if a different team audits the City next year.
Councilmember Berrios replied that if this agreement is executed there wouldn't need
to be a payment.
BeMiller noted that the facility doesn't have any assets except for the facility.
Brubaker communicated that the agreement states that all profits from operations of
the facility go towards debt and that could only occur if the sales tax revenue was
significantly higher and the facility could repay the loan.
Ben Wolters, Economic and Community Development Director communicated that it is
important for the City staff to understand what the Council wants them to do. He said
that having an advisory group would be fine and the effects of having an evaluation
needs to be understood. He explained that it may be communicated that there are
issues and the marketplace would also get the same negative perception. Wolters
further noted that the length of the contract between the City and the PFD is 30 years
and it was put in place prior to the recession and streamlined sales tax. He stated that
the idea was to be open back then and the recession changed things. There is true
accounting which speaks to the quick recognition of that change, he said. The
agreement allowed for potential, depending on sales tax and some other items. The
facility is being booked in an accurate manner, he concluded.
Councilmember Higgins communicated that he didn't know the language was noted as
a loan in the agreement and that he has no problem noting in the agreement that it
isn't. He felt there needs to be a future discussion about the ShoWare. He added that
he believes SMG is doing the best it can and the Council just executed their new
agreement. He added that the intent is to get the best for the residents in the City.
He noted that he is a taxpayer too and wants the best for the City. He noted that this
is a result of the state auditor and they want the City to change the way the City
accounts for what it has been doing.
Councilmember Berrios communicated that he met with the General Manager of SMG
and they are trying to do their best with the facility. He stated that he is asking for a
delay in this decision so it can be reviewed at length. He said the Council owes it to
the citizens to not write off $100 million in one meeting.
Council President Ralph communiated that just because the discussion is going on, it
doesn't mean the Council doesn't value the facility. She stated that she wants to put
this conversation to rest and wants to consider what can be done.
Wolters communicated that he would like the experts from SMG brought in to discuss
their recommendations as to what can be done differently. The options going forward
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n y Council Workshop Minutes December 9, 2014
are to hire a third-party who understands the marketplace in the Northwest and there
are a lot of assumptions that were reasonable in 2006 that are not reasonable now.
He waned to inquire what stones are not turned over.
Councilmember Boyce said that he needs more time to process this and said the
concept seems to make sense.
Councilmember Higgins communicated that the only thing that has changed for him is
that this is identified as a loan and doesn't have any issues with making it a
contribution.
Councilmember Fincher said that she doesn't have any problem with the contribution
and wants to ensure the excess funds are going to the City, which is in the contract.
Councilmember Berrios thanked the Operations Committee for bringing this to the full
Council at the workshop. He appreciated the opportunity to hear this. He stated that
this needs to be called what it is and there is never a guarantee anything will be
adopted since the PFD board has to hear it too. He felt there needs to be more
discussion and the wording of the agreement has to be finalized. He stated there
should be some hope left that the funds would be paid back.
Council President Ralph communicated that this item will go to Operations Committee
and it will be on Other Business at the Special Meeting. She noted that it can be
pulled at the Special meeting if need be.
Miller communicated that the language would need to be approved and Brubaker
added that both entities would need to approve any revised agreement.
The meeting adjourned at 6:48 p.m.
Rona d F. oorp MC
City Cler r
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KENT
Kent City Council Meeting Minutes
December 9, 2014
The regular meeting of the Kent City Council was called to order at 7:00 p.m. by
Mayor Cooke.
Councilmembers present: Ralph, Berrios, Boyce, Fincher, Higgins, and Thomas.
CHANGES TO THE AGENDA FROM COUNCIL, ADMINISTRATION, OR STAFF.
�I
Chief Administrative Officer Derek Matheson recommended adding an executive
session for property negotiations, as per RCW 42.30.110 (1) (c) and removing consent
calendar, item 7Z, Lease Agreement with New Cingular Wireless PCS, LLC for Wireless
Communications Equipment at Hogan Park at Russell Road - Authorize.
PUBLIC COMMUNICATIONS.
A. Public Recognition - Councilmember Higgins introduced Christine Taing, a 12
year old Meridian Middle School student, who wrote The Little Flower. He noted that
the book was about her experiences with bullying and some short stories that describe
ways to deal with bullying in school and in life. He introduced her mother and father
and Christine thanked her parents and the Council for the recognition.
Mayor Cooke suggested Christine serve on the Kent Police Youth Board and Council
President Ralph highlighted the events and purpose of the board.
B. Community Events - Mayor Cooke thanked the Lions Club for their event at the
library and the Christmas tree lighting ceremony. She also noted that Christmas Rush
is this weekend.
C. Proclamation for Combatting Commercial Sexual Exploitation through
Comprehensive Demand Enforcement. Deterrence, and Prevention - Mayor
Cooke read and presented the proclamation to Robert Beiser, Executive Director of
Seattle Against Slavery. Beiser discussed his background and what he has witnessed in
his seven year tenure with the organization. He thanked Mayor Cooke and the Council
for the proclamation and noted that the City of Kent is in the lead when it comes to
combatting this issue.
D. Appointments to the Land Use & Planning Board - Mayor Cooke announced
that Binoy Varughese was a new appointment and Randall Smith and Jack Ottini were
reappointments to the Land Use & Planning Board.
E. Intergovernmental Reports - Council President Ralph stated that last week she
attended a Regional Law Safety and Justice Committee meeting and the topic was
mental health and its interaction with the court system. She noted that there will be
some drastic cuts in mental health funding coming from the State which means a
reduction in beds and places to treat those that are mentally ill in the criminal justice
system. She explained that it can take four to six months to get the competency of a
person in the criminal justice system determined. She said if that takes place here in
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Kent, normally the entire sentence is served prior to the competency being
determined. Therefore, she said the conversation was on how to create additional
treatment beds and divert these people out of jail and into treatment. She noted the
discussion was encouraging and there is some progress going on in the county and
local jurisdictions to establish new beds. She concluded and noted that the South
County Area Transportation Board (SCATBD), King County Regional Transportation,
and the Transportation Policy Board meet next week.
Councilmember Higgins communicated that the Sound Cities Association (SCA) is the
umbrella group for 36 cities in King County, which Kent is the largest. The SCA fights
to get its fair share of resources from the county, state, and other organizations. He
noted that the Board of Directors met last week and the 2015 budget was accepted.
He added that the group reviewed their 2014 accomplishments, one which was
obtaining new seats on the Puget Sound Air Agency Board of Directors. He noted that
they are also working to get more seats allocated on the Puget Sound Regional Council
(PRSC) board. He added that the Regional Transit Committee met and postponed the
adoption of the King County Metro's crowding standards, in lieu of the reformation of
the Regional Transit Task Force that Mayor Cooke served on a few years ago. He
stated that the PSRC Ad Hoc Transportation Committee meets this week and will
discuss what would happen if the legislature doesn't adopt a transportation package in
the 2015 session.
Councilmember Fincher communicated that the King Conservation District (KCD) work
plan and budget were accepted and passed by the King County Council and their
December meeting was cancelled. The next KCD meeting is in June, she said.
Councilmember Boyce announced that the Sound Cities Association (SCA) Committee
has their next meeting tomorrow.
PUBLIC HEARINGS
A. None.
PUBLIC COMMENT
1. Eric Bernard, Kent - Bernard discussed an increase in property taxes in Kent. He
stated that in 2010 the budget was $158 million when the fire department was taken
off the books and currently the City's budget is $159 million. He expressed concerns as
to why the $25 million cost reduction for the fire department wasn't reflected in the
budget. He discussed banked capacity and noted that the City can still levy $2 per
$1,000 in property tax assessments. However, he stated that the residents are already
paying that to the Regional Fire Authority.
2. Dwayne Pollich, Bothell - Pollich discussed the proposed FM radio station. He noted
that he has experience with radio stations and offered his assistance to the City.
Mayor Cooke replied that the Council, and she concurred, are not proceeding with
having a radio station. Council President Ralph added that the City doesn't have the
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budget to fund a study and the City has 18 months to apply for an extension if funds
become available.
CONSENT CALENDAR
Council President Ralph moved to approve Consent Calendar Items A through
EE with the removal of Item Z, seconded by Councilmember Thomas. Motion
carried 6-0.
A. Minutes of Previous Meetings and Workshops - Approve - The minutes of the
Council special meeting of October 14, 2014 and the workshop meeting of October 21,
2014 were approved.
B. Approval of Bills - Payment of the bills received through October 15 and paid on
October 15 after auditing by the Operations Committee on November 18, 2014 were
approved. Payment of the bills received through November 15 and paid on November
15 after auditing by the Operations Committee an December 2, 2014 were approved.
C. Excused Absence for Councilmember Deborah Ranniger - Approve - The
Council approved an excused absence for Councilmember Ranniger as she was unable
to attend the City Council meeting of December 9, 2014.
D. Appointments to Land Use & Planning Board - Confirm - The Council
confirmed the Mayor's appointment of Binoy Varughese and reappointment of Randall
Smith and Jack Ottini to the Land Use & Planning Board.
E. Resolution Authorizing Investment of Available Monies in the Local
Government Investment Pool - Adopt - Resolution No. 1901, authorizing the
investment of City of Kent monies into the local government investment pool was
adopted.
F. 2015 State Legislative Agenda - Approve - The Mayor was authorized to
approve the 2015 Legislative Agenda.
G. Consolidating Budget Adjustment Ordinance for Adjustments Between
July 1, 2014 and September 30, 2014 - Adopt - Ordinance No. 4130, approving
the consolidating budget adjustment ordinance for adjustments made between July 1,
2014, and September 30, 2014, reflecting an overall budget increase of $10,777,812
was adopted.
H. 2014 - 2017 Administrative Services Agreement with Vision Service Plan -
Authorize - The Mayor was authorized to sign a three-year Agreement with Vision
Service Plan to administer the City's self-insured vision plan, with an estimated annual
cost inclusive of vision claims and administrative fees of $115,000, subject to final
contract terms and conditions acceptable to the Human Resource Director and the City
Attorney, and ratify all acts consistent with the Agreement and this authorization.
I. 2015 - 2017 Administrative Services Agreement with Delta Dental of
Washington - Authorize - The Mayor was authorized to sign a three-year Dental
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Care Service Contract with Delta Dental of Washington to administer the City's self-
insured plan for dental services with an estimated annual cost inclusive of dental
claims and administrative fees of $868,277, subject to final contract terms and
conditions acceptable to the Human Resource Director and the City Attorney.
J. 2015 Medical Coverage Renewal Agreement with Group Health Cooperative
- Authorize - The Mayor was authorized to sign a contract renewal for medical
coverage with Group Health Cooperative during 2015 in an amount not to exceed
$510,000, subject to final contract renewal terms and conditions acceptable to the
Human Resource Director and the City Attorney.
K. 2015 - 2017 Administrative Services Agreement with Premera Blue Cross -
Authorize - The Mayor was authorized to sign a three-year Administrative Services
Agreement with Premera Blue Cross to administer the City's self-insured plan for
medical care, with an estimated annual cost inclusive of medical claims and
administrative fees of $8,900,000, subject to agreement terms and conditions
acceptable to the Human Resource Director and the City Attorney.
L. Millennium Ridge Final Plat- Approve - The Council approved the final plat
mylar for Millennium Ridge and authorized the Mayor to sign the mylar.
M. State Environmental Policy Act (SEPA) Amendments, Ordinance - Adopt -
Ordinance No. 4131, amending the Kent City Code to update the City's base
exemption thresholds related to minor new construction under the State
Environmental Policy Act was adopted.
N. 2015 Water Treatment Chemical Supply Contract with JCI Jones Chemical.
Inc. - Authorize - The Mayor was authorized to sign the 2015 Water Treatment
Chemical Supply Agreement with JCI Jones Chemicals Inc. for gas chlorine and sodium
hydroxide in an amount not to exceed $93,981.20, subject to final terms and
conditions acceptable to the City Attorney and Public Works Director.
O. 2015 Water Treatment Chemical Supply Contract with Cascade Columbia
Distribution - Authorize - The Mayor was authorized to sign the 2015 Water
Treatment Chemical Supply Agreement with Cascade Columbia Distribution for Sodium
Fluoride in an amount not to exceed $34,000.00, subject to final terms and conditions
acceptable to the City Attorney and Public Works Director.
P. 2015 Business & Occupation (B&O) Project List - Approve - The Council
approved the street improvement project list recommended by the Public Works
Director and payment of these project costs, except as may be supplemented by grant
funds or additional Council authorization, from the 2015 Business and Occupation Tax
receipts.
Q. Puget Sound Energy (PSE) Construction Agreement for James/Russell
Road Levee Improvements - Authorize - The Mayor was authorized to sign two
cost revision change orders with Puget Sound Energy for the James Street/Russell
Road Realignment Project, upon terms acceptable to the Public Works Director and
City Attorney
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R. Consultant Services Agreement with Shannon & Wilson, Inc. for the Mill
Creek Re-Establishment Project - Authorize - The Mayor was authorized to sign a
Consultant Services Agreement with Shannon & Wilson, Inc. in an amount not to
exceed $49,892 for wetland and stream delineation and biological evaluation services
for Mill Creek, subject to final terms and conditions acceptable to the City Attorney and
Public Works Director.
S. Consultant Services Agreement with AMEC Environment and Infrastructure
for a Sediment Study for the Mill Creek Re-Establishment Proiect - Authorize
- The Mayor was authorized to sign a Consultant Services Agreement with AMEC
Environment and Infrastructure in an amount not to exceed $83,911 for a sediment
study of Mill Creek, subject to final terms and conditions acceptable to the City
Attorney and Public Works Director.
T. 2014 Thermoplastic Markings Project - Accent as Complete - The Mayor was
authorized to accept the 2014 Thermoplastic Markings as complete and release
retainage to Apply-A-Line, Inc., upon receipt of standard releases from the state and
the release of any liens.
U. 2014 Asphalt Overlays Project - Accept as Complete - The Mayor was
authorized to accept the 2014 Asphalt Overlay Project as complete and release
retainage to Icon Materials Inc., upon receipt of standard releases from the state and
the release of any liens.
V. 2015 - 2017 Indigent Counsel Agreement - Authorize - The Mayor was
authorized to sign the Agreement for indigent defense services with Stewart
MacNichols Harmell, Inc., P.S., subject to final terms and conditions acceptable to the
Parks Director and the Human Services Division's advising attorney.
W. Interlocal Agreements with Maple Valley for Court and Jail Services -
Authorize - The Mayor was authorized the Mayor to sign the Interlocal Agreements
between the City of Maple Valley and the City of Kent for both Jail and Municipal Court
Services, subject to final terms and conditions acceptable to the City Attorney.
X. 2014 4Culture Sustained Support Grant Agreement - Authorize - The Mayor
was authorized to accept the Sustained Support Grant Agreement from 4Culture in the
amount of $17,000 to support the Kent Arts Commission's 2014 programs, to sign all
necessary grant documents, and to amend the budget and authorize expenditure of
the funds in accordance with final grant terms and conditions acceptable to the Parks,
Recreation and Community Services Director and City Attorney.
Y. Performance-Based Contract with McKinstry Essention, LLC, Energy
Services for HVAC at Riverbend Golf Complex - Authorize - The Mayor was
authorized to sign the Energy Services Performance-Based Contract with McKinstry
Essention, LLC, in an amount not to exceed $752,796, subject to final terms and
conditions acceptable to the Parks, Recreation and Community Services Director and
City Attorney.
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AA. 2015 - 2016 State Lobbyist Consultant Services Agreement with
Outcomes by Levy, LLC - Authorize - The Mayor was authorized to sign a
Consultant Services Agreement for lobbying services during the 2015 - 2016
legislative sessions with Outcomes by Levy, L.L.C., in an annual amount of $69,600,
plus agreed upon expenses, subject to terms and conditions acceptable to
Administration and the City Attorney.
BB. Wilson Playfields Synthetic Turf Replacement Project - Accept as
Complete - The Mayor was authorized to accept as complete, the Wilson Playfields
Synthetic Turf Replacement project and release retainage funds in the amount of
$79,504.21 to King County Director's Association.
CC. Boeing Secondary Levee and Floodwall - Accept as Complete - The Mayor
was authorized to accept the Boeing Secondary Levee and Floodwall as complete and
release retainage to Quigg Brothers, Inc., upon receipt of standard releases from the
state and the release of any liens.
DD. SR 516 to S 231st Way Levee Improvements - Accept as Complete - The
Mayor was authorized to accept the SR 516 to S. 231st Way Levee Improvements as
complete and release retainage to SCI Infrastructure, LLC upon receipt of standard
releases from the state and the release of any liens.
EE. Consultant Services Agreement with GeoEngineers, Inc. for
Geotechnical Services Phase I & II of the S 224th Street Corridor Project -
Authorize - The Mayor was authorized to sign the Consultant Services Agreement
with GeoEngineers, Inc. in an amount not to exceed $98,937 to provide geotechnical
services for the South 224th Street Improvement Project, subject to final terms and
conditions acceptable to the Public Works Director and City Attorney.
OTHER BUSINESS
A. Ordinance Acknowledging the Merger of tw telecom, inc. and Level 3
Communications - Introduce - Tom Brubaker, City Attorney highlighted the item.
He noted that the two companies are merging and under federal law the item must be
introduced and adopted at two separate Council meetings. He added that no franchise
conditions change under the current agreement.
B. Puget Sound Emergency Radio Network Interlocal Agreements - Authorize
- Tom Brubaker, City Attorney communicated that currently in King County the
various public safety agencies don't operate under the same radio bandwidth, nor do
they have the same systems. This proposal is from all the 911 public safety providers
in King County to create a new unified bandwidth radio communication system called
the Puget Sound Emergency Radio Network. He added that this system will give a
single bandwidth throughout the county so if there is an emergency all the agencies
can communicate with each other and provide assistance. This proposal is subject to
the passing of a $225 - $250 million bond measure this spring to complete this
project. He stated that the Council has two agreements to consider. One is an
implementation agreement which, if the bond passes, operates between the various
parties to buy, build, and design the radio network. The second document is a
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memorandum of agreement which stipulates some of the basic tenants on how the
cities involved will operate. He noted that there are essentially only four parties
involved in this agreement; 1) Valley Communications Center, which represents Kent,
Auburn, Renton, Tukwila, and Federal Way, 2) Eastside Public Safety Communications
Agency (EPSCA), which represents Bellevue, Redmond, Kirkland, Mercer Island, and
Issaquah, 3) King County, and 4) the City of Seattle.
Councilmember Higgins confirmed that this isn't obligating any City funds at this time.
He added that all of this is contingent on the passing of the bond. Brubaker also
explained that if the bond does pass the cost of maintenance to the system is about
$250,000 per year and he guessed that the cost is more than the City pays now, but
the system will be substantially better. Brubaker noted that the cost of the system
would be spread throughout all of the cities in King County.
Councilmember Thomas authorized the Mayor to sign the implementation
interlocal agreement and the operational Memorandum of Agreement for the
Puget Sound Emergency Radio Network, subject to final terms and conditions
acceptable to the City Attorney, seconded by Councilmember Boyce. Motion
carried 6-0.
C. General Commercial-Mixed Use (GC-MU) Zoning Code Amendment,
ordinance - Adopt - Ben Wolters, Economic and Community Development Director
introduced this proposed change based on some recent changes in the real estate
market. He noted that the goal of this is to preserve options for future growth within
downtown Kent in a mixed use variety. Wolters stated that as a part of the Downtown
Strategic Action Plan the Council adopted a zoning code amendment to reduce the
minimum amount of commercial development required within the mixed use zoning
from 25 percent to 5 percent. Additionally, the boundary of downtown was expanded
further west to include the area around Washington Boulevard. At that time, he said
the presumption was that commercial development would be the primary need. Now,
based on a change in the marketplace, multifamily housing could outpace commercial
development to the west. He noted that it is important to preserve general commercial
mixed use (GC-MU) and highlighted the Kmart site as a possible site for this type of
development. He recommended the commercial development requirement be moved
back to 25 percent.
Erin George, Senior Planner communicated that the 25 percent is calculated as a
percentage of gross floor area. She added that commercial and residential could be in
separate buildings on one site. She summarized that this proposal is to increase the
minimum commercial requirement in the general commercial mixed use zone back to
25 percent in downtown only and all of the other GC-MU areas outside of downtown
would have a 5 percent commercial requirement.
Wolters explained that this is on other business because it has been approved by the
Land Use & Planning Board and it was briefed to the Economic and Community
Development Committee which was scheduled to have a meeting but this would have
been the only agenda item. Therefore, based on the marketplace and the sensitivity
the decision was to bring this to the Council under Other Business.
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Council President Ralph thanked the staff and confirmed that there wasn't any public
comment and passed the Land Use & Planning Board unanimously.
Councilmember Boyce moved to adopt Ordinance No. 4132, amending KCC
15.04.200, entitled "Mixed Use Overlay Development Standards," with related
amendments to the definition of "mixed use development" in KCC 15.02.260,
seconded by Councilmember Higgins.
BIDS
None.
REPORTS FROM STANDING COMMITTEES, STAFF AND SPECIAL COMMITTEES
A. Council President. Council President Ralph discussed the workshop discussions.
She said the power outage that occurred on November it which shut down the City's
information technology system was discussed, to include lessons learned and what can
be done going forward. The second item, she stated, was the Public Facilities District
Contingent Loan and Support Agreement. She said this is an accounting item relating
to ShoWare Center. The Public Facilities District that was formed as a part of the
building of ShoWare and whether or not the money that is being put into the ShoWare
Center to help support the debt payment is a subsidy from the City or a loan the Public
Facilities District has that the City needs to address repayment. She noted that this a
fairly complicated issue, but the bookkeeping outcome is that if it is debt it needs to be
reported as such in the budget and if it is not going to be paid back to the City it needs
to be reported as such.
B. Mayor.
C. Administration. Chief Administrative Officer Derek Matheson communicated that
there will be an executive session for twenty minutes.
D. Economic & Community Development Committee. In the minutes.
E. Operations Committee. In the minutes.
F. Parks and Human Services Committee. No report.
G. Public Safety Committee. No report.
H. Public Works Committee. In the minutes.
I. Regional Fire Authority. No report and no meeting in December.
EXECUTIVE SESSION
At 8:02 p.m., Mayor Cooke reconvened the regular meeting and announced
that the Council would recess into an Executive Session for twenty minutes to
discuss property negotiation as per RCW 42.30.110(1)(c).
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At 8:22 p.m., Mayor Cooke extended the Executive Session ten minutes.
At 8:25 p.m., the Executive Session concluded and Mayor Cooke reconvened
the regular meeting.
ACTION AFTER EXECUTIVE SESSION
A. Property Negotiation, as per RCW 42.30.110(1) (c) - There was no action
taken after the Executive Session.
ADJOURNMENT
The meeting adjourned at 8:26 p.m.
Ronald F ooMC
City Clerk
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PUBLIC COMMENT
SIGN UP SHEET
KENT
For the Kent City Council Meeting of:.,,,
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Kent, WA 98032 Plan
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Members of the public are invited to speak under "Public Comment" Agenda Item #6.
Please sign above and when asked by the Mayor, come to the podium.
Please limit your comments to three (3) minutes.