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HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 06/04/2013 KENT 'Nasrviry cToe Kent City Council Workshop June 4, 2013 The meeting was called to order at 5:30 p.m. by Council President Higgins. Councilmembers present: Higgins, Thomas, Perry, Ranniger, Boyce, and Albertson. Council President Higgins revised the agenda to hear item 4, Liquor Control Board I- 502 Improvements before item 3, SE 256th Street Improvements - Update. Wellness Program. Becky Fowler, Benefits Manager discussed the City Wellness Program. Kari Endicott, Benefits Analyst also highlighted the specifics of the program and the website. She explained several aspects of the program, to include the well- being assessment, how the challenges work, and how the point system works within the program. She added that there are articles, applications, links and other information concerning health and well-being on the website. Six-Year Transportation Improvement Program (TIP). Tim LaPorte, Planning and Community Development Director discussed the TIP and stated that the item will be brought to the Council agenda on June 18 with a public hearing and subsequent ordinance for adoption. He noted that this is the annual update required by law and that the Council has the authority to add or deduct from the TIP. Council President Higgins stated that he wants the Council to review the TIP and the projects in it on an annual basis to ensure they are vetted by committee members. Councilmember Albertson communicated that this is the wish list and if these projects aren't on this list they don't get funded. Council President Higgins added that projects need to be on the TIP to solicit for federal funds. Liquor Control Board I-502 Regulations, David Galazin, Assistant City Attorney communicated that the Washington State Liquor Control Board (WSLCB) is in the process of adopting the State rules for the implementation of Initiative 502. He stated that there is a letter that has been drafted by the City staff that they want the Mayor and Council to sign and sent to WSLCB by June 10th. He highlighted the timeline and discussed the flaws the City has with I-502. First, he noted that the initiative doesn't distinguish between the interplay of local governments and the Control Board when a license is granted. He continued and said there is no requirement for the WSLCB or the entity who applied for the license to contact the municipality. Conversely, he pointed out that under the liquor regulations, establishments need to ensure all local regulations are followed prior to them even looking at an application. Additionally, he stated that the second part of the City's letter points out that the current draft_ regulations don't address having any buffers. He displayed a 1,000 foot buffer map which identifies where marijuana facilities could not be located. He communicatedthat if the City does nothing to the City code, any use not listed in the land use table is a prohibited use, thus any marijuana producing, distribution, or retailing would be 1 Kent City Council Workshop Minutes June 4, 2013 illegal based on the Kent City Code. He displayed a map of zoning districts that have miscellaneous retail and areas that allow light industrial uses. He said that the City of Seattle is adopting regulations that allow retail sales of marijuana to be like any other sales. He communicated that cities are unsure what the light use and the legal implications are. He said if this is something the Council decides that they want to take on, then they have until December 1st to institute legislation. He communicated that the Law Department has a list of questions to send to the Liquor Control Board and Council President Higgins commented that he doesn't want his name on the document. Council President Higgins noted that there is ambiguity in I-502. Councilmember Albertson discussed the item and said she is uncomfortable with the questions coming from the Council. Councilmember Boyce questioned the code violation process and Mr. Galazin replied that violations concerning health, safety, and welfare are the only jurisdiction the City has to stop a permit, if there are code or permit violations. Councilmember Perry communicated that the City doesn't want the liquor control board allowing these to be established without local authority. Additionally, she felt the liquor control board shouldn't allow these to operate without local authority and comments from the jurisdiction. Interim Chief Administrative Officer Brubaker communicated that there needs to be some clarity on how this affects the City of Kent. He stated that if the Council wants to do zoning it needs to be done prior to the implementation of the liquor control board regulations. He added that this isn't an attempt to restrict I-502, but to identify and possibly institute some local regulations prior to this. Councilmember Thomas communicated that marijuana use is prohibited by federal law within City limits. He confirmed that collective gardens also wouldn't be allowed. Council President Higgins noted that another workshop will be needed. Interim Chief Administrative Officer Brubaker stated that June 10 is the deadline to submit comments to the WSLCB concerning I-502. Council President Higgins noted that the comments to WSLCB can come from the Mayor, not the Council Councilmember Perry stated that the City should do some zoning for this. Councilmember Albertson communicated that the City will be losing out on tax revenues if nothing is done. Council President Higgins said that Interim Chief Administrative Officer Brubaker could add his name to the letter. 2 Kent City Council Workshop Minutes June 4, 2013 SE 256th Street Improvements - Update. Interim Chief Administrative Officer Brubaker discussed the item and gave a brief background of the item. He discussed the $2 million dollar gap for the project and said that at yesterdays public works meeting it was noted that the undergrounding and landscaping can be cut in order to save some money. However, he said the scope of the project shouldn't be changed because undergrounding is required by City ordinance. Additionally, undergrounding is accepted throughout the City as a part of its vision and it is inappropriate to revise. However, he highlighted that not undergrounding would save the project $640,000. He stated that the City can add an additional $250,000 in transportation improvement fees. He said there are $300,000 in nonpetitioned LID parcels that can be utilized from property owners who executed agreements to not protest the LID and that a 60% assessment value was done on the properties which could be raised to 100% to generate more revenue. He communicated that by the end of this year the City will have an overage of $400,000 in its General Reserve Fund and these funds are normally moved into the Strategic Opportunities fund. However, he felt those funds shouldn't be utilized because the City is starting to rebuild those funds and wants to maintain a 10% gap in reserve funding. Additionally, he said those funds are to be utilized for investment opportunities. Councilmember Perry added that if those funds are utilized they would have to be paid back within three years. Interim Chief Administrative Officer Brubaker discussed the Standard & Moody's report on the City's financial picture. He noted that if the City took an interfund loan it would be noted and would possibly lower the City's rating. He discussed the goal of the B&O tax, which is to generate $3.2 million, and $1.2 has been allocated this year. However, Councilmember Boyce pointed out that only $400,000 has been collected in B&O this year. Interim Chief Administrative Officer Brubaker communicated that business awareness will be raised and businesses will be audited as needed. He said he is encouraged by the B&O responses thusfar, but pointed out that the goal is to reach $5 million per year. Councilmember Boyce inquired what the auditors are doing and felt they should be out collecting the funds from the businesses. Interim Chief Administrative Officer Brubaker replied that they are working hard to reach out to the community and are processing first payments. Councilmember Albertson communicated that she felt those funds will be received. Interim Chief Administrative Officer Brubaker stated that the Council has communicated that the City isn't to utilize B&O for projects outside of what has previously been approved. He noted that utilizing B&O would cause the City to have to drop one of the overlay projects in either north or south central Kent. He noted that there would be a domino effect where projects in the following years would also need to be abandoned. He stated that the City can continue to take Transportation Impact Fee (TIF) revenues and push those funds into the B&O to pay for this project. He communicated that this also isn't considered a loan. 2 Kent City Council Workshop Minutes June 4, 2013 Councilmember Albertson stated that she wants to utilize the TIF to do this and supported this option. Her only concern is that this isn't classified as a loan. Councilmember Boyce communicated that this is spending B&O money before we get it and inquired if this is the most important project the City has right now. Councilmember Albertson replied that this project has been rolled to the top of the City's list for the past 20 years and would have been on the top of the funding list if the Council would have forecasted that the LID would have failed. Council President Higgins communicated that the time is financially right and is upset about the LID failing. He said he isn't going to let four or five property owners dictate what happens in that neighborhood. Councilmember Perry communicated that she doesn't have an issue with raising the assessment and using B&O tax funds. She felt the City should use all the TIF funds possible for the next two years for the project and use the B&O for the rest. Interim Chief Administrative Officer Brubaker communicated that the idea is to utilize whatever comes in. He also stated that this needs to happen tonight or it needs to be considered at a special meeting in the next few days. Council President Higgins noted that a consensus on how it is going to be done needs to occur. Mr. Brubaker noted that doing this after June 18 may not allow for enough time for bonding, etc. Discussion continued concerning how to proceed. Councilmember Albertson communicated that she can't attend a special meeting. Councilmember Ranninger expressed concerns with the amount of money that needs to be raised for this and it doesn't make sense to invest future revenues. Discussion continued on the B&O revenues. Councilmember Thomas stated he is uncomfortable with this item and communicated that there were 124 signatures and five were the controlling interest in preventing the LID from passing. Consensus was to bring this into Other Business at the regular meeting. The meeting adjourned at 6:38 p.m. lveff onaErk �oor , MMC /// City 2