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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 11/18/2008 Operations Committee Agenda Councilmembers: Debbie Raplee*Les Thomas*Tim Clark, Chair Unless otherwise noted, the Operations Committee meets at 4:00 p.m. on the 1 st and 3rd Tuesdays of each month. Council Chambers East, Kent City Hall, 220 4th Avenue South, Kent , 98032-5895. Dates and times are subject to change. For information please contact Nancy Clary at (253) 856 - 5705. 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. November 18, 2008 4:00 p.m. ItemDescription Action Speaker Time Page 1. Approval of minutes YES 1 dated November 4, 2008 2. Approval of vouchers dated YES Bob Nachlinger October 31, 2008 3. Collection Agency Services YES Bob Nachlinger 05 Min. 5 Agreement 4. Appointment of Greg Haffner YES Ben Wolters 05 Min. 33 to Public Facilities District (PFD) Board 5. Kent Events Center Naming YES Ben Wolters 10 Min. 55 Agreement 6. Approval Utility Rate Adjustments YES Bob Nachlinger 15 Min. 57 7. 2009 Budget Adoption Ordinance YES Bob Nachlinger 20 Min. 79 This page intentionally left blank 1 2 3 This page intentionally left blank 4 1 FINANCE R. J. Nachlinger, Director Phone: 253-856-5260 Fax: 253-856-6255 220 Fourth Avenue S. Kent, WA. 98032-5895 November 18, 2008 TO: Kent City Council Operations Committee FROM: R.J. Nachlinger, Finance Director THROUGH: Suzette Cooke, Mayor SUBJECT: Collection Agency Services Agreement MOTION: Move to recommend Council authorize the Mayor to sign a contract with AlllianceOne Receivables Management, Inc. to provide debt collection services through the State of Washington contract for all accounts referred by the City except those administered by the Municipal Court, subject to final contract terms and conditions acceptable to the City Attorney. SUMMARY The vast majority of City accounts are paid when due or shortly after finance charges are imposed. The usage of a collection agency is a valuable tool in the collection of remaining amounts owed to the City. The Municipal Court uses the King County contract for the collection of delinquent accounts. However, this contract can only be used for collection of court-related debts. The state contract allows participating local governments to receive the same benefit for non-court related debts. Both of these contracts are administered by AllianceOne Receivables Management, Inc (ARMI). BUDGET IMPACT The impact is largely dependent on the recovery rate of accounts referred for collection. In all cases the City receives the full principal amount of the amount collected as well as 50% of the finance charges (12% per year) imposed by ARMI. DETAIL ARMI provides debt collection services for the Municipal Court. State law and the Kent City Code also authorize usage of a collection agency for certain delinquent debts including: 5 2 Code enforcement fines and penalties City utility services Contracts if agreement contains such provision Damages to City property Business licenses and penalties Admission, gambling and utility taxes Various other products and services for which payment is not received in advance Court fines The City would retain authority for determination of accounts would be referred for collection. This decision would be primarily based on the amount owed, length of delinquency and willingness of the customer to make payment arrangements. In general, accounts less than $50.00 would not be referred for collection except with respect to NSF checks. The State of Washington Debt Collection Services contract is used by all state agencies and is available for use by Higher Education and the Washington State Purchasing Cooperative (WSPC). There are no state fees associated with participation in the state contract. As of October 27, 2008 there were 29 cities participating in the state contract, including Auburn, Bellevue, Edmonds, Federal Way, Redmond, Renton, SeaTac, Spokane and Tacoma. The state contract is administered by ARMI. Collection fees are added to the principal balance of the accounts assigned. Fees are 24% of the amount assigned. Accounts are also subject to finance charges (12% per year) and these charges are split equally between the City and ARMI. EXHIBITS Letter of Understanding State of Washington Debt Collection Services contract (06806CA) AllianceOne Collections Services Information Overview 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 This page intentionally left blank 32 ECONOMIC DEVELOPMENT Ben Wolters Phone: 253-856-5703 Fax: 253-856-6700 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: November, 18, 2008 TO: Kent City Council Operations Committee FROM: Ben Wolters, Economic Development Director THROUGH: Staff SUBJECT: Appointment to Public Facilities District (PFD) Board MOTION: “Recommend council confirm the Mayor’s appointment of Greg Haffner to the Kent Events Center Public Facilities District for an additional four year term, and ratify all acts consistent with this motion.” SUMMARY: Greg Haffner was originally appointed to the Board of Directors for the Kent Events Center Public Facilities District on September 7, 2008. In accordance with City of Kent Ordinance No. 3852 and Public Facilities District Resolution No. 1769, each director was appointed to a different term in order to stagger the term end dates. These legislative documents and RCW 35.57.010(3)(a) require that after the initial appointment, each director’s term is to be for a period of four years. Therefore, the Mayor requests council confirm her appointment of Mr. Haffner to a new four year term. This item is on the Council’s agenda for consideration the same night it proceeds to the Operations Committee—November 18, 2008. Should this item not pass unanimously out Committee, it will be removed from the Consent Calendar and discussed by Council under Other Business. If you have any questions prior to the meeting, please call Ben Wolters, 856- 5703. EXHIBITS: Attached BUDGET IMPACT: No 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 ECONOMIC DEVELOPMENT Ben Wolters Phone: 253-856-5703 Fax: 253-856-6700 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: November, 18, 2008 TO: Kent City Council Operations Committee FROM: Ben Wolters, Economic Development Director THROUGH: Staff SUBJECT: Kent Events Center Naming Agreement MOTION: “Recommend council authorize the Mayor to sign the Naming Rights Agreement with Vision One / ShoWare Center at Kent, subject to final terms and conditions acceptable to the City Attorney, and ratify all acts consistent with this motion.” SUMMARY: On July 26, 2007, the Kent City Council authorized the Mayor to take all acts necessary to construct the Kent Events Center and to enter into a 30 year license agreement with the Seattle Thunderbirds to be the anchor tenant of the Center and be the City’s authorized agent to sell advertising and naming rights of the Center. In furtherance of Council’s directive, the Seattle Thunderbirds, in consultation with City Staff, pursued several naming right opportunities and identified Vision One Inc as a naming rights partner. On Oct. 7th, 2008, City Staff informed Council that the City had reached agreement with Vision One Inc to name the building after their primary product, ShoWare, which is a comprehensive on-line ticketing and box office management system. The facility will be named the “ShoWare Center at Kent” and the ShoWare Center logo will appear prominently on the building, in the arena and on all promotion materials. The ShoWare system will be used to manage ticket sales for the Center and the Seattle Thunderbirds through a separate 5 year plus 5 year renewal contract between SMG, the Center operator, and Vision One. In return Vision One Inc agrees to pay the City $3,175,000 over 10.5 years through equal quarterly installments ($75,000). This item is on the Council’s agenda for consideration the same night it proceeds to the Operations Committee – November 18, 2008. Should this item not pass unanimously out Committee, it will be removed from the Consent Calendar and discussed by Council under Other Business. If you have any questions prior to the meeting, please call Ben Wolters, 856- 5703. EXHIBITS: None BUDGET IMPACT: 55 This page intentionally left blank 56 FINANCE R. J. Nachlinger,Director Phone: 253-856-5260 Fax: 253-856-6255 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: November 18, 2008 TO: Kent City Council Operations Committee FROM: R. J. Nachlinger, Finance Director THROUGH: John Hodgson, Chief Administrative Officer SUBJECT: Approval Utility Rate Adjustments MOTION: I move to recommend that the Operations Committee approve the rate increases for Water and Drainage as of April 1, 2009 and forward the item to the December 9, 2008 City Council agenda. SUMMARY: In conjunction with the approval of the 2009 Budget for the City of Kent various rate increases have been proposed for water service and storm water fees. The water rates are to be implemented over a six year period with the base fee increasing by fifteen percent annually and the system development charges being increased with the passage of the ordinance. The adjustment in our storm water charges eliminates the various basins that the City was divided into and replaces them with a single basin covering the entire City. Additionally, the system development charge for storm water services is to be increased with the passage of this ordinance. BUDGET IMPACT: The budget impact for these utility funds is $162,473 for the base rate increase in water service; $869,036 for the increase in the water system development charge; $2,338,135 in the base rate for drainage service; and $647,627 for the system development charge for drainage. 57 1 Water and Drainage Rates and Fees for 2009 Budget ORDINANCE NO. ________ AN ORDINANCE of the City Council of the City of Kent, Washington, which relates to the 2009 fiscal year budget and amends various fees and rates established by the Kent City Code concerning water and drainage rates and fees, which fee amendments shall be assessed and collected beginning April 1, 2009, and incorporated into the 2009 fiscal year budget. THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION 1. – Water Utility Charges. Section 7.02.160 of the Kent City Code, entitled “Installation and Connection Charges Inside City Limits,” is amended to increase the system development charges as follows: Sec. 7.02.160. Installation and Connection Charges Inside City Limits. A. Tap Charge – Connection by Water Utility. Any property owner within the city limits applying for water service shall pay in full a tap charge plus a system development charge prior to issuance of the water service permit. The tap charge will include the cost of connection and 58 2 Water and Drainage Rates and Fees for 2009 Budget laying the pipe from the City water main to the property line of the property to which service is desired, or at a distance of sixty (60) feet from the main toward such property line, whichever is shorter. The minimum tap charge so established for service installed by the water utility is as follows: 1. Two hundred seventy-five dollars ($275) for each five-eighth (5/8) inch by three-quarter (3/4) inch connection. 2. Three hundred twenty-five dollars ($325) for each three- quarter (3/4) inch connection. 3. Three hundred fifty dollars ($350) for each one (1) inch connection. 4. Six hundred dollars ($600) for each one and one-half (1 1/2) inch connection. 5. Eight hundred dollars ($800) for each two (2) inch connection. On any connection over two (2) inches, the minimum tap charge shall be the actual cost of the meter and installation, plus twenty-five (25) percent. B. Tap charge – Connection by licensed contractor. If the workload of the water utility as determined by the director of public works is such that the installation of the water connection would interfere with the proper operation and maintenance of the water system, the director of public works may require that the property owner employ a licensed contractor to make the connection and install the necessary line and materials except the water meter. All such water services shall meet or exceed the standards and specifications approved by the director of public works. The minimum tap charge is as follows: 1. One hundred dollars ($100) for each five-eighth (5/8) inch by three-quarter (3/4) inch connection. 59 3 Water and Drainage Rates and Fees for 2009 Budget 2. One hundred twenty-five dollars ($125) for each three- quarter (3/4) inch connection. 3. One hundred seventy-five dollars ($175) for each one (1) inch connection. 4. Three hundred sixty dollars ($360) for each one and one-half (1 1/2) inch connection. 5. Five hundred dollars ($500) for each two (2) inch connection. All such contractor-installed connections shall be guaranteed by the contractor for a period of one (1) year. C. System development charge. The system development charge is as follows: Meter Size (inches) Charge Effective Through March 31, 2009 Charge Effective April 1, 2009 Less than 1 $2,600 $5,949 1 $4,627 $14,872 1-1/2 $10,400 $29,743 2 $18,486 $47,589 3 $41,594 $95,179 4 $73,933 $148,717 5 $115,528 $222,932 6 $166,376 $297,434 8 $295,786 $475,894 10 $462,162 $654,354 After April 1, 2009, this system development charge will increase annually, on the first day of each calendar year, by an amount equal to the percentage increase in the Construction Price Index for Seattle-Tacoma- Bremerton for the twelve months October 31 through September 30 of the previous calendar year. 60 4 Water and Drainage Rates and Fees for 2009 Budget 1. Two thousand six hundred dollars ($2,600) for each meter less than one (1) inch in size. 2. Four thousand six hundred twenty-seven dollars ($4,627) for each one (1) inch meter. 3. Ten thousand four hundred dollars ($10,400) for each one and one-half (1 1/2) inch meter. 4. Eighteen thousand four hundred eighty-six dollars ($18,486) for each two (2) inch meter. 5. Forty-one thousand five hundred ninety-four dollars ($41,594) for each three (3) inch meter. 6. Seventy-three thousand nine hundred thirty-three dollars ($73,933) for each four (4) inch meter. 7. One hundred fifteen thousand five hundred twenty-eight dollars ($115,528) for each five (5) inch meter. 8. One hundred sixty-six thousand three hundred seventy-six dollars ($166,376) for each six (6) inch meter. 9. Two hundred ninety-five thousand seven hundred eighty-six dollars ($295,786) for each eight (8) inch meter. 10. Four hundred sixty-two thousand one hundred sixty-two dollars ($462,162) for each ten (10) inch meter. However, if (a) the City’s fire marshal has required that, in conjunction with the City’s issuance of a single-family residential building permit, the applicant must install a fire sprinkler system, and (b) the need for a meter size greater than three-quarters (3/4) of an inch is based solely on the fire marshal’s requirement that the sprinkler system be installed, the single-family residential permit applicant shall pay only the system development charge listed above for a meter less than one (1) inch in diameter. It is not the City’s intent to require an applicant to pay a higher system development charge when the larger meter size is needed 61 5 Water and Drainage Rates and Fees for 2009 Budget only in the unusual event of a fire demand rather than for normal daily user demand. D. Installation of undersized meter. If an undersized meter is installed, a deduction will be allowed from the above charges, including system development charges, which will reflect the difference in cost between the undersized meter and the regular size meter. All service material (including water meter) will remain the property of the City. E. Tap change. If the tap is changed to one of a larger size, the cost and expense of such charge must be paid before the larger size tap is installed. F. Paving replacement – Charge. If it becomes necessary during the installation of such connection on a time and material basis to break and replace either concrete or blacktop paving, then in each instance an additional charge shall be made to cover the cost of such repair. SECTION 2. – Monthly Demand Charge for Water Service Within the City Limits. That portion of section 7.02.300 of the Kent City Code, entitled “Water Rates Within the City,” which pertains to the monthly water rates and demand charges assessed to water customers within the city limits of Kent is amended to increase the demand charge as follows: Sec. 7.02.300. Water Rates Within The City. A. Water rates. The following staggered rates apply during the time periods listed below. Within each time period, the lower rate applies per one hundred (100) cubic feet of water used for up to or equal to seven hundred (700) cubic feet, and the higher rate applies per one hundred (100) cubic feet of water used in excess of seven hundred (700) cubic feet: 62 6 Water and Drainage Rates and Fees for 2009 Budget Effective Date October 1 – April 30 May 1 – September 30 ≤ 700 ft3 > 700 ft3 ≤ 700 ft3 > 700 ft3 12/31/1999 $1.24 $1.69 $1.64 $2.09 01/01/2003 $1.30 $1.77 $1.72 $2.19 01/01/2004 $1.37 $1.86 $1.81 $2.30 01/01/2005 $1.44 $1.95 $1.90 $2.42 All rates are also subject to a monthly demand charge for service and meter, which is as follows: Meter size (inches) Charge Effective January 1, 2007 Charge Effective January 1, 2008 Charge Effective April 1, 2009 Charge Effective January 1, 2010 5/8 x 3/4 $3.76 $5.26 $6.05 $6.96 1 $4.19 $8.94 $10.28 $11.82 1 1/2 $5.64 $13.64 $15.69 $18.04 2 $6.84 $18.09 $20.80 $23.92 3 $23.85 $38.35 $44.10 $50.72 4 $28.72 $46.47 $53.44 $54.59 6 $48.03 $69.03 $79.38 $91.29 8 $64.25 $88.50 $88.51 $101.79 10 $84.53 $113.03 $129.98 $149.48 63 7 Water and Drainage Rates and Fees for 2009 Budget Meter size (inches) Charge Effective January 1, 2011 Charge Effective January 1, 2012 Charge Effective January 1, 2013 Charge Effective January 1, 2014 5/8 x 3/4 $8.00 $9.20 $10.58 $12.17 1 $13.59 $15.63 $17.97 $20.67 1 1/2 $20.75 $23.86 $27.44 $31.56 2 $27.51 $31.64 $36.38 $41.84 3 $58.33 $67.08 $77.14 $88.71 4 $62.78 $72.20 $83.03 $95.48 6 $104.98 $120.73 $138.84 $159.66 8 $117.06 $134.62 $154.81 $178.03 10 $171.90 $197.69 $227.34 $261.44 B. Lifeline customers. The City Council will establish eligibility criteria for lifeline customers. For lifeline-qualified water service customers, the following rates apply for water use per one hundred (100) cubic feet: Effective Date January 1 – December 31 12/31/1999 $0.45 01/01/2003 $0.47 01/01/2004 $0.49 01/01/2005 $0.51 All lifeline rates are also subject to the monthly demand charge for service and meter as set forth in subsection (A) of this section. C. Rate adjustment. 1. Subject to the right of access and inspection by a representative of the City, water service customers of the City may apply for a one (1) time rate adjustment for any single billing period under the following circumstances: 64 8 Water and Drainage Rates and Fees for 2009 Budget a. An accidental water leak has been discovered on the subject property; or b. A water line failure has occurred on the subject property; or c. An unexplained, abnormal water meter reading has occurred on the subject property even though subsequent City inspection of the water meter indicates that the meter is functioning properly. This rate adjustment shall not exceed fifty (50) percent of the difference between the total amount of the billing period sought for adjustment minus the customer’s average water usage. For the purposes of this subsection, the “average water usage” shall be computed by determining the total volume of water consumed, under normal use conditions, during the preceding twelve (12) months and dividing that total volume by the number of times the City would typically read the customer’s water meter in a twelve (12) month period. 2. This rate adjustment is permitted on a one (1) time basis only and can only be applied to one (1) billing period. To be eligible for this rate adjustment, the affected water system must be owned by or subject to the exclusive control of the customer and be located between the City’s water meter and owner’s residence or structure. The bill sought for adjustment must exceed two (2) times the customer’s highest usage in any single billing period during the twelve (12) months prior to the billing period sought for adjustment. 3. Following a request for rate adjustment provided under this subsection, the City’s finance director, or his/her designee, shall review the request and determine whether or not to adjust the customer’s monthly billing. In order to make a proper determination, City staff shall be entitled to access, inspect and approve the customer’s water system repair prior to granting a rate adjustment. 65 9 Water and Drainage Rates and Fees for 2009 Budget 4. If approved, the City shall make this rate adjustment by issuing a credit to the customer’s account after verification of leakage or water system failure, inspection of water meter and water system, where applicable, and verification of corrective repairs. All repairs shall occur within thirty (30) days of application to the City. 5. The owner may request reconsideration of the decision of the finance director, or his/her designee, by the City Council through the City Council’s operation committee. SECTION 3. – Monthly Demand Charge for Water Service Outside the City Limits. That portion of section 7.02.310 of the Kent City Code, entitled “Water Rates Outside City,” which pertains to water rates and the monthly demand charges assessed to water customers outside the city limits of Kent is amended to increase the demand charge as follows: Sec. 7.02.310. Water Rates Outside City. A. Water rates. The following staggered rates apply during the time periods listed below. Within each time period, the lower rate applies per one hundred (100) cubic feet of water used for up to or equal to seven hundred (700) cubic feet, and the higher rate applies per one hundred (100) cubic feet of water used in excess of seven hundred (700) cubic feet: Effective Date October 1 – April 30 May 1 – September 30 ≤ 700 ft3 > 700 ft3 ≤ 700 ft3 > 700 ft3 12/31/1999 $1.64 $2.09 $2.00 $2.46 01/01/2003 $1.72 $2.19 $2.10 $2.58 01/01/2004 $1.81 $2.30 $2.21 $2.71 01/01/2005 $1.90 $2.42 $2.32 $2.85 All rates are subject to a monthly demand charge for service and meter which is as follows: 66 10 Water and Drainage Rates and Fees for 2009 Budget Meter size (inches) Charge Effective January 1, 2007 Charge Effective January 1, 2008 Charge Effective April 1, 2009 Charge Effective January 1, 2010 5/8 x 3/4 $3.76 $5.26 $6.05 $6.96 1 $4.19 $8.94 $10.28 $11.82 1 1/2 $5.64 $13.64 $15.69 $18.04 2 $6.84 $18.09 $20.80 $23.92 3 $23.85 $38.35 $44.10 $50.72 4 $28.72 $46.47 $53.44 $54.59 6 $48.03 $69.03 $79.38 $91.29 8 $64.25 $88.50 $88.51 $101.79 10 $84.53 $113.03 $129.98 $149.48 Meter size (inches) Charge Effective January 1, 2011 Charge Effective January 1, 2012 Charge Effective January 1, 2013 Charge Effective January 1, 2014 5/8 x 3/4 $8.00 $9.20 $10.58 $12.17 1 $13.59 $15.63 $17.97 $20.67 1 1/2 $20.75 $23.86 $27.44 $31.56 2 $27.51 $31.64 $36.38 $41.84 3 $58.33 $67.08 $77.14 $88.71 4 $62.78 $72.20 $83.03 $95.48 6 $104.98 $120.73 $138.84 $159.66 8 $117.06 $134.62 $154.81 $178.03 10 $171.90 $197.69 $227.34 $261.44 B. Lifeline customers. The City Council will establish eligibility criteria for lifeline customers. For lifeline-qualified water service customers, the following rates apply for water use per one hundred (100) cubic feet: 67 11 Water and Drainage Rates and Fees for 2009 Budget Effective Date January 1 – December 31 12/31/1999 $0.48 01/01/2003 $0.50 01/01/2004 $0.53 01/01/2005 $0.56 All lifeline rates are also subject to the monthly demand charge for service and meter as set forth in subsection (A) of this section. C. Rate adjustment. 1. Subject to the right of access and inspection by a representative of the City, water service customers of the City may apply for a one (1) time rate adjustment for any single billing period under the following circumstances: a. An accidental water leak has been discovered on the subject property; or b. A water line failure has occurred on the subject property; or c. An unexplained, abnormal water meter reading has occurred on the subject property even though subsequent City inspection of the water meter indicates that the meter is functioning properly. This rate adjustment shall not exceed fifty (50) percent of the difference between the total amount of the billing period sought for adjustment minus the customer’s average water usage. For the purposes of this subsection, the “average water usage” shall be computed by determining the total volume of water consumed, under normal use conditions, during the preceding twelve (12) months and dividing that total volume by the number of times the City would typically read the customer’s water meter in a twelve (12) month period. 68 12 Water and Drainage Rates and Fees for 2009 Budget 2. This rate adjustment is permitted on a one (1) time basis only and can only be applied to one (1) billing period. To be eligible for this rate adjustment, the affected water system must be owned by or subject to the exclusive control of the customer and be located between the City’s water meter and owner’s residence or structure. The bill sought for adjustment must exceed two (2) times the customer’s highest usage in any single billing period during the twelve (12) months prior to the billing period sought for adjustment. 3. Following a request for rate adjustment provided under this subsection, the City’s finance director, or his/her designee, shall review the request and determine whether or not to adjust the customer’s monthly billing. In order to make a proper determination, City staff shall be entitled to access, inspect and approve the customer’s water system repair prior to granting a rate adjustment. 4. If approved, the City shall make this rate adjustment by issuing a credit to the customer’s account after verification of leakage or water system failure, inspection of water meter and water system, where applicable, and verification of corrective repairs. All repairs shall occur within thirty (30) days of application to the City. 5. The owner may request reconsideration of the decision of the finance director, or his/her designee, by the City Council through the City Council’s operation committee. SECTION 4. – Storm and Surface Water Utility Charges. Section 7.05.090 of the Kent City Code relating to the City’s storm and surface water utility and entitled “System of charges,” is amended as follows: Sec. 7.05.090. System of charges. A. There is hereby imposed a system of charges on each parcel of real property within the City served by or to which is available for service the 69 13 Water and Drainage Rates and Fees for 2009 Budget storm and surface water utility established by this chapter. The charges are found to be reasonable and necessary to fund administration, planning, design, construction, operation, maintenance, repair, improvement, and replacement of all existing and future storm and surface water facilities, including the accumulation of reserves and the retirement of any associated debt. B. The following charges are hereby established for all parcels of real property in the City: 1. Residential parcels. The Effective January 1, 2007, the single-family residential rate shall be as follows: Charged in Dollars Per Month, Per Residential Dwelling Effective January 1, 2007 Effective April 1, 2009 Effective January 1, 2010 Effective January 1, 2011 $2.57 plus the basin- specific charge of subsection (B)(5) of this section. $8.75 $10.06 $11.57 Effective January 1, 2012 Effective January 1, 2013 Effective January 1, 2014 $13.31 $15.30 $17.59 two dollars and fifty-seven cents ($2.57) per month for each parcel having one (1) residential dwelling plus the basin-specific charge of subsection (B)(5) of this section.The basin specific charge set forth under subsection (B)(5) shall apply to residential dwellings through March 31, 2009, but shall be eliminated after that date. 70 14 Water and Drainage Rates and Fees for 2009 Budget 2. Agricultural and undeveloped parcels. Agricultural parcels shall be charged the monthly residential parcel rate. Undeveloped parcels shall not be charged. 3. Other parcels. a. The charge for all other parcels except residential parcels, agricultural parcels and undeveloped parcels shall be based upon: (1) The total amount of impervious surface as expressed in equivalent service units (an equivalent service unit (ESU) has been determined to be two thousand five hundred (2,500) square feet of impervious surface or any fraction thereof); and (2) The percentage of impervious surface area on each parcel. b. The charge for all such parcels shall be computed: (1) By multiplying the total number of ESUs on each parcel by the appropriate parcel’s impervious multiplier established in subsection (3)(c) below; and (2) Multiplying the results by the sum of the single- family residential rate, if any. c. Impervious multipliers are hereby established: (1) Percentage of impervious area per parcel (impervious surface/total surface x 100) Impervious multiplier 1 to 40 1 41 to 60 1.2 61 to 80 1.4 81 to 100 1.6 (2) Impervious multipliers correlate the hydraulic impact of a parcel to its percentage of impervious surface per parcel. The multiplier for the average single-family residence is established as one (1). 71 15 Water and Drainage Rates and Fees for 2009 Budget The multiplier linearly increases as the percentage of impervious area increases. The final category has a multiplier of one and six-tenths (1.6) which reflects the hydraulic impact on the drainage system compared to the that impact of an the average single-family residence. 4. Road systems. The impervious surface area for City roads shall be assessed thirty (30) percent of the charge established in subsection (B)(3) of this section for impervious service areas. 5. Basin-specific charges. The City shall have all lawful powers and authorities to fix, alter, regulate and control charges within specific basins and subbasins. The purpose of the power and authority granted in this section is to provide for charging parcels of one (1) basin or subbasin for improvements, studies or extraordinary maintenance which specifically and solely benefit the property owners thereof. The following basin- specific charges shall be assessed and collected through March 31, 2009are as follows: Charged in dollars per equivalent service unit, ESUper month Basin Effective Date January 1, 2007 Effective Date January 1, 2008 Westside O $0.10 $1.68 K, L, M, D, E, F, P & N $0.15 $1.68 Eastside Mill Creek Upper (G) $4.27 $4.27 Lower (A) $5.05 $5.05 Valley Det. (Q) $5.05 $5.05 Garrison Creek Lower (B) $2.12 $2.12 Upper (J & I) $1.94 $1.94 Direct (C) $2.23 $2.23 Soos Creek (H) $4.35 $4.35 72 16 Water and Drainage Rates and Fees for 2009 Budget Effective April 1, 2009, these basin specific charges shall no longer apply, and the City will assess and collect the new single-family residential rate established in KCC 7.05.090(B)(1). The boundaries of the described basins are generally indicated on Attachment A to Ordinance No. 3461, which is on file with the City Clerk. The boundaries of the basins and subbasins are generally defined and on file in the City Clerk’s Office. The detailed definitions thereof are reflected on maps filed in the engineering division of the public works department, which are available to the public for review and/or copying during normal business hours. 6. Water quality charges. a. The City hereby authorizes and declares its intent to establish, within two (2) years of the adoption of this chapter, a water quality charge which may be added to any or all of the above rates. The purposes of such a charge will be to finance monitoring, testing, treatment and control of pollutant discharges into the storm and surface water system, including the exercise of all lawful enforcement powers of the City. A plan for developing such charges, and a schedule and budget for this project, shall be submitted to the City Council for review and approval before enactmentwithin ninety (90) days of adoption of this chapter. A system of water pollution charges for storm and surface water run-off from all parcels of real property in the City shall be developed within two (2) years. b. Such charges should be based upon appropriate indices of pollutant discharges which approximate each parcel’s contribution to the problem of water quality within storm and surface water facilities including all receiving waters. 73 17 Water and Drainage Rates and Fees for 2009 Budget 7. Undeveloped parcels shall be subject to all charges established under this section upon development of a parcel. Development shall be determined by the date of issuance of a building permit or any other permit for development purposes or as otherwise established by the director of public works. SECTION 5. – Rates Within Drainage District. Section 7.05.120 of the Kent City Code, entitled “Rates Within Drainage Districts,” is amended as follows: 7.05.120. Rates within drainage districts. Through March 31, 2009, Tthe storm and surface water utility charges imposed upon all parcels within the City which are also being assessed, according to the records of the King County assessor, by drainage district number 1 or drainage district number 2 shall be reduced by the amount equal to such assessments upon the providing of adequate proof thereof to the finance director or designee. The maximum reduction allowed in any one (1) year shall be limited to the storm and surface water utility charge imposed for that year. Effective April 1, 2009, these rate reductions shall no longer apply. SECTION 6. – Connection Fees. Section 7.05.160 of the Kent City Code, entitled “Connection Fees,” is amended as follows: Sec. 7.05.160 Connection fees. Connection fees shall be assessed against an owner of real property at the time of issuance of a development permit for any onsite storm or surface water drainage structure or facilities which attach or connect to, or otherwise drain into, the system of drainage facilities as defined in KCC 7.05.050 or where any additional surface or storm water run-off is generated and delivered or transported through either natural or person-made watercourses to the 74 18 Water and Drainage Rates and Fees for 2009 Budget utility’s system of storm and surface water facilities. The connection fees, assessed and collected through March 31, 2009, shall be as follows: Basin Connection charge in dollars per month per acre G 12.50 I 11.25 A 13.75 B 12.50 C & A 1.25 All others (except Basin H) 0.0 Effective April 1, 2009, the connection fee assessed and collected by the City under this section shall terminate and the City will assess and collect a drainage systems development charge in accordance with KCC 7.05.165. As of December 31, 1999, and effective through March 31, 2009, for Basin H only (the Soos Creek Watershed, generally), the charge per connection will be a flat fee of four hundred dollars ($400) per equivalent service unitESU. Effective April 1, 2009, the City will no longer assess and collect basin specific charges. The basins are as defined under KCC 7.05.090(B)(4). The charge in effect through March 31, 2009, is calculated by the number of months from the date of adoption of this chapter to the date of issuance of the development permit, and the acre represents the area of the property being developed. All connection fees collected by the storm and surface water utility shall be placed in a separate revenue account for the storm and surface water utility. 75 19 Water and Drainage Rates and Fees for 2009 Budget SECTION 7. – Drainage Systems Development Charge. Chapter 7.05 of the Kent City Code relating to the City’s storm and surface water utility is amended to add a new section, section 7.05.165, entitled “Drainage Systems Development Charge,” as follows: Sec. 7.05.165. Drainage Systems Development Charge. Effective April 1, 2009, the City shall assess and collect a drainage systems development charge against all new development or redevelopment in the amount of one thousand and seven hundred and eighty-seven dollars ($1,787) per ESU, as defined in KCC 7.05.090(B)(3). This drainage system development charge will increase annually, on the first day of each calendar year, by an amount equal to the percentage increase in the Construction Price Index for Seattle-Tacoma-Bremerton for the twelve month period October 1 through September 30 of the previous calendar year. All drainage system development charges collected by the storm and surface water utility shall be placed in a separate revenue account for the storm and surface water utility. SECTION 8. – Severability. If any one or more section, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. / / / / / / / / / / 76 20 Water and Drainage Rates and Fees for 2009 Budget SECTION 9. – Effective Date. This ordinance shall take effect and be in force five (5) days from and after its passage as provided by law. However, the fees amended by this ordinance shall not be assessed and collected until April 1, 2009, and are included in the 2009 fiscal year budget. SUZETTE COOKE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY PASSED: day of , 2008. APPROVED: day of , 2008. PUBLISHED: day of , 2008. I hereby certify that this is a true copy of Ordinance No. _________ passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. (SEAL) BRENDA JACOBER, CITY CLERK P:\Civil\Ordinance\Budget2009-UtilityFeeIncreases.docx 77 This page intentionally left blank 78 Kent Council Operations Committee 2009 Budget Adopted FINANCE R. J. Nachlinger, Director Phone: 253-856-5260 Fax: 253-856-6255 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: November 18, 2008 TO: Kent City Council Operations Committee FROM: R. J. Nachlinger, Finance Director THROUGH: John Hodgson, Chief Administrative Officer SUBJECT: 2009 Budget Adoption Ordinance MOTION: I move to recommend adoption of an ordinance adopting the 2009 budget. SUMMARY: This ordinance adopts the 2009 budget. The budget to be adopted is summarized in Exhibit A. It includes the Preliminary Budget document as amended by Exhibit B, which includes all adjustments made to the Preliminary Budget since its original publication. BUDGET IMPACT: 2009 Budget BACKGROUND: Council has held two public hearings and two workshops on the 2009 budget. All amendments in Exhibit B have been reviewed by the Operations Committee. Adjustments related to the actual property tax levy will be incorporated as soon as we receive final numbers from King County. 79 1 2009 Budget Adoption ORDINANCE NO. ______ AN ORDINANCE of the City Council of the City of Kent, Washington, relating to budgets and finance and adopting the final 2009 fiscal year budget. RECITALS A. The tax estimates and preliminary budget for the City of Kent, Washington, for the 2009 fiscal year have been prepared and filed as provided by law, and the budget has been printed and distributed. B. Notice has been published in the official paper of the City of Kent setting the time and place for hearing and that notice stated that all taxpayers calling at the Office of the City Clerk would be furnished a copy of the 2009 budget. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION 1. - Budget Adoption. Pursuant to RCW 35A.33.075, the budget for the 2009 fiscal year, as summarized in the attached Exhibit “A” and as set forth in the 2009 Preliminary Comprehensive Budget, which is amended by the attached Exhibit “B,” all of which are incorporated into this ordinance by this reference, is hereby adopted in the amounts and for the purposes established in that budget as the final budget for the City’s 2009 fiscal year. 80 2 2009 Budget Adoption SECTION 2. - Transmittal. The finance director shall transmit a complete copy of the final adopted budget to the Division of Municipal Corporations in the Office of the State Auditor and to the Association of Washington Cities. SECTION 3. - Adjustments. City administration shall administer the Annual Budget and in doing so may authorize adjustments pursuant to RCW 35A.33.120. SECTION 4. - Severability. If any one or more sections, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 5. - Effective Date. This ordinance shall take effect and be in force five (5) days from and after the date of passage and publication as provided by law. SUZETTE COOKE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY 81 3 2009 Budget Adoption PASSED: day of , 2008. APPROVED: day of , 2008. PUBLISHED: day of , 2008. I hereby certify that this is a true copy of Ordinance No. passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. (SEAL) BRENDA JACOBER, CITY CLERK P:\Civil\Ordinance\BudgetAdoption-2009.doc 82 Inc (Dec) Beginning Ending in Fund Fund Fund Revenues Expenditures Balance Balance Balance GOVERNMENTAL FUNDS GENERAL FUND 86,868,831 86,868,831 8,475,911 8,475,911 SPECIAL REVENUE FUNDS Street 5,510,318 4,418,782 1,091,536 52,354 1,143,890 LEOFF 1 Retiree Benefits 917,961 570,253 347,708 743,944 1,091,652 Lodging Tax Fund 190,500 159,000 31,500 246,908 278,408 Youth/Teen Programs 943,495 815,095 128,400 170,594 298,994 Capital Improvement 11,229,771 11,271,604 (41,833) 1,295,413 1,253,580 Criminal Justice 3,153,333 3,962,495 (809,162) 1,265,684 456,522 Environmental Mitigation 106,423 168,706 (62,283) 68,340 6,057 Community Block Grant 618,064 618,064 Other Operating Projects 64,469 69,068 (4,599) 76,778 72,179 Kent Events Center Operating Fund 6,052,080 5,903,864 148,216 148,216 DEBT SERVICE FUNDS Voted 609,600 620,760 (11,160) 26,738 15,578 LTGO Debt 7,435,621 7,435,621 2009 Budget Ordinance Exhibit A LTGO Debt 7,435,621 7,435,621 Special Assessment 4,611,549 4,773,439 (161,890) 1,714,358 1,552,468 CAPITAL PROJECTS FUNDS Street Projects 1,730,500 1,730,500 Parks Projects 2,354,000 2,354,000 Other Capital Projects 793,000 793,000 Technology Projects 950,000 950,000 Facilities Projects 540,000 540,000 PROPRIETARY FUNDS ENTERPRISE FUNDS Water 14,503,648 13,723,240 780,408 260,788 1,041,196 Sewerage 31,432,889 32,850,933 (1,418,044) 4,821,053 3,403,009 Golf Complex 3,482,234 3,284,447 197,410 (1,911,288) (1,713,878) INTERNAL SERVICE FUNDS Equipment Rental & Fire Equipment 5,082,562 5,989,924 (907,362) 1,278,617 371,255 Central Services 5,404,772 5,536,173 (131,401) 212,039 80,638 Facilities Fund 5,842,703 5,810,053 32,650 (1,834) 30,816 Insurance 15,410,620 14,071,591 1,339,029 8,288,504 9,627,533 TOTAL GROSS BUDGET 215,838,943 215,289,443 549,123 27,084,901 27,634,024 LESS: Internal Service Funds 31,509,241 31,509,241 Other Transfers 17,075,151 17,075,151 TOTAL BUDGET 167,254,551 166,705,051 549,123 27,084,901 27,634,024 11/12/2008 83 Inc (Dec) Beginning Ending in Fund Fund Fund Revenues Expenditures Balance Balance Balance GOVERNMENTAL FUNDS GENERAL FUND 87,157,360 87,157,360 8,475,911 8,475,911 Reduction of Development Fees (921,995)(921,995)(921,995) Offset by: Increased Court Revenues 50,000 50,000 50,000 COLA Reduction (521,960) 521,960 521,960 Other Cuts in Salaries/Services/Supplies (326,334) 326,334 326,334 Adjust Salaries/Benefits-Job Rotation (23,701) 23,701 23,701 Admissions Tax-Event Center 583,466 583,466 583,466 Transfer to Event Center Fund 583,466 (583,466)(583,466) Total General Fund 86,868,831 86,868,831 8,475,911 8,475,911 SPECIAL REVENUE FUNDS Street 5,510,318 4,430,539 1,079,779 52,354 1,132,133 COLA Reduction (11,757) 11,757 11,757 Total Street 5,510,318 4,418,782 1,091,536 52,354 1,143,890 Public Safety Retiree Health 917,961 570,253 347,708 743,944 1,091,652 CITY OF KENT, WASHINGTON 2009 Budget Ordinance Exhibit B Public Safety Retiree Health 917,961 570,253 347,708 743,944 1,091,652 Lodging Tax Fund 190,500 159,000 31,500 246,908 278,408 Youth/Teen Programs 943,495 815,095 128,400 170,594 298,994 Capital Improvement Fund 11,229,771 11,269,804 (40,033) 1,295,413 1,255,380 Remove transfer to projects: Security Fences (88,200) 88,200 88,200 Facilities Card Access (130,000) 130,000 130,000 Fire Station Grounds Renovation (40,000) 40,000 40,000 Add transfer to project: Emergency Roof Repairs (Station 74)260,000 (260,000)(260,000) Total Capital Improvement Fund 11,229,771 11,271,604 (41,833) 1,295,413 1,253,580 Criminal Justice 3,153,333 3,988,939 (835,606) 1,265,684 430,078 COLA Reduction (26,444) 26,444 26,444 Total Criminal Justice 3,153,333 3,962,495 (809,162) 1,265,684 456,522 Environmental Mitigation 106,423 169,762 (63,339) 68,340 5,001 COLA Reduction (1,056) 1,056 1,056 Total Environmental Mitigation 106,423 168,706 (62,283) 68,340 6,057 Community Block Grant 618,064 618,064 Other Operating Projects 64,469 69,068 (4,599) 76,778 72,179 Kent Events Center Operating Fund Add 2009 Budget 6,052,080 5,903,864 148,216 148,216 DEBT SERVICE FUNDS Voted 609,600 620,760 (11,160) 26,738 15,578 LTGO Bonds 7,435,621 7,435,621 Special Assessment 4,611,549 4,773,439 (161,890) 1,714,358 1,552,468 11/12/2008 84 Inc (Dec) Beginning Ending in Fund Fund Fund Revenues Expenditures Balance Balance Balance CITY OF KENT, WASHINGTON 2009 Budget Ordinance Exhibit B CAPITAL PROJECTS FUNDS Street Projects 1,730,500 1,730,500 Parks Projects 2,354,000 2,354,000 Other Capital Projects 793,000 793,000 Technology Projects 950,000 950,000 Facilities Projects 798,200 798,200 Remove transfer to project: Emergency Facility Repairs (Lifecycle)(50,000) 50,000 50,000 Floor Covering Replace (Lifecycle)(60,000) 60,000 60,000 Remove projects: Security Fences (88,200) (88,200) Facilities Card Access (130,000) (130,000) Fire Station Grounds Renovation (40,000) (40,000) Add transfer to project: Emergency Roof Repairs (Station 74)110,000 (110,000)(110,000) Total Facilities Projects 540,000 540,000 PROPRIETARY FUNDS ENTERPRISE FUNDS Water 14,847,484 14,090,282 757,202 260,788 1,017,990 Implement Rate Increase April 1st: Reduce Water Rate Fees (54,158)(54,158)(54,158) Reduce System Dev Charge (289,678)(289,678)(289,678) Remove Project-East Hill Water Reservior (345,000) 345,000 345,000 COLA Reduction (22,042) 22,042 22,042 Total Water Fund 14,503,648 13,723,240 780,408 260,788 1,041,196 Sewerage 32,428,143 33,880,398 (1,452,255) 4,821,053 3,368,798 Drainage Rate Increase April 1st: Reduce Drainage Rate Fees (779,378)(779,378)(779,378) Reduce System Dev Charge (215,876)(215,876)(215,876) Remove Projects: Mill Creek (200,000) 200,000 200,000 Riverview Park (250,000) 250,000 250,000 Misc. Drainage Improvements (265,000) 265,000 265,000 Drainage Infrastructure Replacements (280,000) 280,000 280,000 COLA Reduction (34,465) 34,465 34,465 Total Sewerage Fund 31,432,889 32,850,933 (1,418,044) 4,821,053 3,403,009 Golf Complex 3,482,234 3,284,824 197,410 (1,911,288) (1,713,878) COLA Reduction (377) Total Golf Complex 3,482,234 3,284,447 197,410 (1,911,288) (1,713,878) 11/12/2008 85 Inc (Dec) Beginning Ending in Fund Fund Fund Revenues Expenditures Balance Balance Balance CITY OF KENT, WASHINGTON 2009 Budget Ordinance Exhibit B INTERNAL SERVICE FUNDS Equipment Rental 5,082,562 6,034,304 (951,742) 1,278,617 326,875 COLA Reduction (42,933) 42,933 42,933 Reduced Cost Allocation from Central Services (1,447) 1,447 1,447 5,082,562 5,989,924 (907,362) 1,278,617 371,255 Central Services 5,449,772 5,539,169 (89,397) 212,039 122,642 Reduce Cost Allocation to: General Fund (30,397)(30,397)(30,397) Other Funds (14,603)(14,603)(14,603) COLA Reduction (2,996) 2,996 2,996 Total Central Services Fund 5,404,772 5,536,173 (131,401) 212,039 80,638 Facilities Fund 5,582,703 5,577,114 5,589 (1,834) 3,755 COLA Reduction (26,430) 26,430 26,430 Reduce Cost Allocation from Central Services (631) 631 631 Remove Projects: Emergency Facility Repairs (Lifecycle) (50,000) (50,000) Flooring Covering Replacements (60,000) (60,000) Add Projects:Add Projects: Emergency Roof Repairs (Station 74) 370,000 370,000 Total Facility Fund 5,842,703 5,810,053 32,650 (1,834) 30,816 Insurance 15,410,620 14,053,534 1,357,086 8,288,504 9,645,590 COLA Reduction (5,644) 5,644 5,644 Adjust Salaries/Benefits-Job Rotation 23,701 (23,701)(23,701) Total Insurance Funds 15,410,620 14,071,591 1,339,029 8,288,504 9,627,533 TOTAL GROSS BUDGET 215,838,943 215,289,443 549,123 27,084,901 27,634,024 LESS: Internal Service Funds 31,509,241 31,509,241 Other Transfers 17,075,151 17,075,151 TOTAL BUDGET 167,254,551 166,705,051 549,123 27,084,901 27,634,024 11/12/2008 86