HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Agenda - 02/01/2000 CITY OF
rNVICTA Jim White, Mayor
COUNCIL WORKSHOP
AGENDA
The Council Workshop will meet in Chambers East in Kent City Hall at 5:00 PM on Tuesday,
February 1, 2000.
Council Members: President Leona Orr, Sandy Amodt, Tom Brotherton, Tim Clark,
Connie Epperly, Judy Woods, Rico Yingling
Speaker Time
N.- 1. Sea Tac Noise Study Update Ron Seymour, Port of Seattle 30 minutes
2. 1998 Audit Report State Auditor 20 minutes
3. Strategic Planning in Government (Video) Tom Brotherton 20 minutes
4. Intergovernmental Report Dena Laurent 10 minutes
The Council Workshop meets each month on the first Tuesday at 5:OOPM and the third Tuesday at 5:30 PM
in Chambers East unless otherwise noted. For agenda information please call Jackie Bicknell at (253) 856-
5712.
ANY PERSON REQUIRING A DISABILITY ACCOMMODATION SHOULD CONTACT THE
CITY CLERK'S OFFICE AT (253) 856-5725 IN ADVANCE. FOR TDD RELAY SERVICE, CALL
THE WASHINGTON TELECOMMUNICATIONS RELAY SERVICE AT 1-800-833-6388.
220 4th AVE.SO., /KENT,WASHINGTON 98032-5895/TELEPHONE (253)856-5200
I
CITY OF KENT
EXIT CONFERENCE
1998 AUDIT
Date October 11, 1999 Time 3:00 pm
Location Kent City Hall
Purpose of Audit
• Compliance with significant State and Federal laws and regulations
• Review of high-risk areas for adequate control systems to safeguard assets
• Fair and proper presentation of financial statements
Audit Period
January 1, 1998 through December 31, 1998
Audit Coverage
High Risk and Legal Compliance
• Open Public Meetings Act
• Bid Compliance/contracts
• Debt covenants
• Imprest and petty cash
• Officials conflict of Interest
• Budgets
• Expenditures and disbursements
• Central cash receipting —City Hall
• Payroll
• Remote Cash Receipting: Municipal court, parks and recreation department,
business licenses at Centennial Center, public works department
Federal Compliance
• Community Development Block Grant
Financial Statements
• Cash and investments
• Revenues and expenses
• Property and equipment
• Overall presentation of the financial statements
Reports to be issued
State Auditor's Report
• Audit Summary
• Description of Entity
• Audit Areas Examined
• Audit Overview
• Schedule of Findings
Standard Reports
• Independent Auditor's Report On Compliance And Internal Control Over
Financial Reporting In Accordance With Government Auditing Standards
• Independent Auditor's Report On Compliance With Requirements Applicable To
Each Major Program And Internal Control Over Compliance In Accordance With
OMB Circular A-133
• Independent Auditor's Report On Financial Statements
Current Year Issues
Findings
• Tournament operations at the golf course continue to lack sufficient controls to
adequately safeguard assets and prevent misappropriation.
• Internal controls over the golf course token machine revenue were inadequate
and revenue reports were plugged.
Management Letter
• Contracts
• Disbursements
Exit Items
• We found a lack of segregation of duties in review of the gambling taxes and
business licenses processes.
• Customer services should obtain a listing of authorized signers and approvers of
petty cash transactions at the department level. In addition, reimbursements
should be made from the original receipt whenever possible.
• The deposit bag is kept in an unlocked file cabinet until picked up by courier.
• All cashiers at the Senior Center operate out of the same cash drawer. If there is
a loss, the city would not be able to affix responsibility. (repeat from prior year).
Status of Prior Year Issues
Exit items
• Most prior year exit items were resolved.
Audit Costs
• General Audit = $40,570.40 (664 Hours at $61.10/hour plus travel)
• Single Audit= $4,888 (80 Hours at $61.10/hour plus travel)
• Fraud = $3,666 (60 Hours at $61.10/hour plus travel
We would like to thank your staff for their assistance!
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Senate
continue to
ouse and S 'rating budgets that
ro osed supplemental 'rating
general fund dollars
CAL-Fiscal committee leader
ng props in he fill,"
�-- BUDGET�IS ation of prod back we are not
ert tax relief, some Initiative 695 is a proposal by
behind the scenes irl anti
bviously,the `devil is in the d intriguing etails' and
likely would include proport tion, etc. O
available for trans Q we have seen that would offerr funding for
oHB
made a sat this time. One thing
an theta for an I-695 backfIII approa while the bill,
close to seeing y Vancouver, as a moderate
Rep. Don Carlson,R- Carlson,
d amount to $183 million in tong ed hat Rep restoration
leverage in
ever city in the state an it should be ass a budget,holds some lev g
3013, does not stand a chance on' own,
who last year swung over to the Democrats to help them p
the budget debate.
the fiscal front: expected to be reported out of totHO trengthening the
Also worth mentioal
nrnt, on (sponsored by Rep. Pat Scott),
Government Committee this week are HB 2397
Local Government Fiscal Note process; and several bills on unfunded mandates
n d atee relief,
2392'lsng
HB 2392 and HB 2395. The City was
nsuccessTask Forful in dce to stuing edy local government financing
provisions for a Local Government g
_evenues are
and service delivery. Under our amendment,rfetrestarey will took e distributed.oWe should note that while several
t just at how r
allocated but also at how fines and
legislators move ahead with legislation to impose a freeze on imposition of new unfunded
mandates, the Governor's Office continues to be resistant to an across-the-board freeze.
TRANSPORTATION —BUDGET —The activity level is beginning to increase on the
transportation budget front. Both House and Senate committees are holding almost nightly
sessions to go over their budgets. In the Senate, Senator Haugen has introduced four"title only"
bills —SB 6751-54—that give her a placeholder for dealing with budget amendments and such.
Chairman Haugen's vice-chair, Sen. Georgia Gardner, D-Blaine, has introduced SB 6756,
specifying how much of the new$30 license fee will be put into the Washington State Patrol
account— and by implication, sending a signal that the remainder could be funneled into
transportation accounts.
On another front, representatives of the State DOT, State Transportation Improvement Board
(TIB), State Freight Mobility Strategic Investment Board (FMSIB) met with representatives of
local government, ports, and business last Tuesday to strategize over a combined package of
investments—totaling $112-125 million—that represent projects which are "ready to go" and
also offer direct economic links and return on investment. The hope is to persuade the
Legislature to fund a series of these "construction ready"projects and, also, provide additional
bonding authority for the TIB to assist others.
TRANSPORTATION— 'LOCAL OPTIONS' BILL—Last Thursday saw a hearing on HB
30519 legislation sponsored by Rep. Rush Fisher, D-Tacoma, co-chair of the House
Transportation Committee, providing cities, counties and transit districts with additional taxing
Options to help finance their transportation and transit needs. Main components of the bill, all
subject to voter approval:
• In areas where there here is a$15 vehicle license fee
Districts"made increase the fee up of counties such as Kin
• Cities up to $60_ , cities, or a combinationg CO tY� "Trans
and counties thereof ,Transportation
• Cities co could enact a 1/10 could seek to
could for, street of one percent sales tax incre
• Cities could e districts"to imposeenact Propertyincrease-
Cities
the e gasoline u tax-based transportation taxes;
• Parking equivalent of a B&O P t° 2 Percent of gross recei is
b tax authority is granted °n gas; P , while co• The statuto for transportation; unties
Currently ry sales tax ceiling of 6/10 of one Y, IVIETRO of Kin Percent on transits would be eliminate
The bi11's fate is probably g County is at the .6 statutory
we have tended to emphasizey°n the uphill side. maximum. d.
that the While our city is supportive of these local options
y are certainly not an answer unto themselves
LEOFF/PERS ISSUES —
This will be a critical week, in that the Senate Ways &
Committee and House Appropriations Committee will consider
front. One of those is SB 6530/HB ns C which contains the foilY Means
major bills elements:the LEOFF/PERS
• Optional PERS 3 and LEOFF 3 Programs which would have definedbenefit
defined contribution (employee) components; (employer) and
• Reduce retirement age for LEOFF II from 55 to 53;
• Reduce Early Retirement reduction factor to 3%per year for PERS 2 and 3 employees—
those age 55 with 30 years—early retiree would qualify for the 3%
• Reduce early retirement reduction factor to 3% annual for the LEOFF 2 and 3 early retiree
who is age 50 with 25 years of service.
Estimates are that these changes would represent an additional cost to local government of$60
million; and estimates are that, using estimated rate-reduction savings in the LEOFF/PERS plans
pursuant to the State Actuary report, $57 million of the $60 million could be absorbed by local
government foregoing the rate reduction savings.
Meanwhile, one potentially positive bill on the cost side is SB 6792, which was drafted by city
and county interests in conjunction with legislative staff. It would take $50 million in surplus
LEOFF I pension assets and allow them to be dedicated toward payment of extraordinary
such as nursing
medical expenses uld be eliminated long-term t c. I
SB 6792, like SB h
6730,had as hearing n turn, LEOFF I employer
e
and member contributions wo
Senate Ways & Means Committee on Monday.
TIF LEGISLATION— On Tuesday at 1:30, the sponsored b Economicouse Re Aaron Reardon. Thisibillad
Trade Committee held a hearing on HB 2852, spons y p
e const
authorizes a form of"Tax Inc rement FinanciifO�hHB 2852at would bactuallytwould provide state utional because it sfunds
increments of sales/excise tax. In its current
and combine them with authorization to qualifying hies o use projects one of three
increment of
increments to help find economic development/infrastructure tax_which
sal es/excise tax; an `offset' against the state sales tax; or g increment ive a maximum of$5 million
may be questionable on constitutional grounds. Projects co ^
in state funds and would have to meet qualifying/accountability criteria.
"BUILDABLE LANDS" BILL —SB 6562 had a Monday, 1 p.m. hearing in the Senate
State/Local Government Committee. This is the bill that imposes new reporting, planning, and
�T measurement requirements on cities and counties in the six counties/cities that currently have
responsibilities in statute for `Buildable Lands' inventories. The additional responsibilities for
ensuring GMA compliance for housing density targets are expensive and, at this point, unfunded.
Meanwhile, some infrastructure and housing funding incentives promised in the bill would
appear to be difficult if not impossible to achieve, given the Legislature's budget/fiscal pressures
in the wake of 695. Further, there are already remedies in law to challenge cities that don't meet
housing density targets —without imposing a raft of new requirements and responsibilities on
those who are.
RIGHTS-OF-WAY LEGISLATION— Last Thursday, the Senate Energy/
Telecommunications/Technology Committee had a panel discussion on this legislation, which is
HB 2882/SB 6676. Some cities are more prone to support the right-of-way legislation at this
time, while some cities, continue to have concerns with the legislation and would oppose it if
changes and modifications cannot be made. For Kent, two of the biggest concerns are the lack of
specific timelines for ensuring telecommunications service providers relocate (at their expense)
when we must have them move to accommodate a public works project; and the fact that
wireless service providers can come into the right of way with very little `nexus' available to us
to charge them, particularly with respect to new facilities. We'll continue to stay very involved
with this legislation.
ANNEXATION—HB 2450— While most of the onerous bills to make annexation more difficult
`died' in the House Local Government Committee following last week's hearings, one which
still has some `life' is HB 2450, which would prohibit pre-annexation agreements that cities
require in exchange for supplying water service to unincorporated areas. The bill has shown up
as a possible `Executive session' item, meaning it could be moved out of Committee, although
the Committee members certainly could choose NOT to move it.
PUBLIC AGENCY RETIREES' HEALTH INSURANCE ACCESS—Representatives of
Retired Public Employees and Retired Judges have been working feverishly behind the scenes to
rejuvenate last year's SSB 5607, which mandates that all public agencies provide `access' to
post-employment, pre-Medicare retirees on their health insurance plans. Our concern is the
additional costs involved in doing so. The promoters of this bill appear to have momentum to
again pass it out of the Senate and get it to the House for a hearing. I have talked with Sharon
DeHaan about amendments that would delay implementation of any bill and ensure that the
retirees could be `rated' separately so that the cost of providing them access does not
significantly drive up costs of all health insurance. We will work on this further and report back
if/when a House-side hearing approaches.
LIABILITY IMMUNITY/HERTOG —HB 2715, providing gross negligence protection for
pre-trial and probation services employees dealing with misdemeanor offenders, has a hearing
scheduled 1:30 p.m. Wednesday in the House Criminal Justice and Corrections Committee.
Along with the gross negligence level of immunity is a provision calling on a Washington State
Law & Justice Council to adopt standards for how the probation/pre-trial services would be
employed. Kent supports this bill.
*...