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Home My WebLink AboutCity Council Committees - Kent City Council - 09/08/2020 Approved Kent City Council - Committee of the Whole Committee of the Whole - Regular Meeting Minutes September 8, 2020 Date: September 8, 2020 Time: 4:02 p.m. Place: THIS IS A REMOTE MEETING 1. CALL TO ORDER Council President Troutner called the meeting to order. 2. ROLL CALL Attendee Name Title Status Arrived Toni Troutner Council President Present Bill Boyce Councilmember Present Brenda Fincher Councilmember Present Satwinder Kaur Councilmember Present Marli Larimer Councilmember Present Zandria Michaud Councilmember Present Les Thomas Councilmember Absent Dana Ralph Mayor Present 3. AGENDA APPROVAL There were no changes to the agenda. 4. DEPARTMENT PRESENTATIONS 1. South 224th Street Project Phase II Drainage Easement, Acces Easement, Temporary Construction Easement, and Right-of- Way Acquisition - Authorize Property & Acquisition Analyst, Cheryl Rolcik-Wilcox presented on Phase II of the South 224th Street Project. This portion of the project requires the City acquire from Craig and Christine Dougherty a Drainage Easement, Access Easement, Temporary Construction Easement, and a portion of Dougherty’s property in fee located at 22011 76th Avenue South for $40,000. Kent City Council - Committee of the Whole Committee of the Whole - Regular Meeting Minutes September 8, 2020 Kent, Washington Page 2 of 4 MOTION: Authorize the Mayor to sign a final settlement agreement along with all documents necessary for the acquisition of a Drainage Easement, Access Easement, Temporary Construction Easement, and right-of-way on portions of property owned by Craig W. Dougherty and Christine L. Dougherty, located at 21920 93rd Avenue South (APN 880240-0020), for an amount not to exceed $40,000.00, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. RESULT: RECOMMENDED TO COUNCIL BY CONSENSUS Next: 9/15/2020 7:00 PM 2. Clark Springs Habitat Conservation Measure - Property Purchase - Authorize Property & Acquisition Analyst, Cheryl Rolcik-Wilcox spoke about the purchase of the Phillips property located at 26127 Kent-Kangley Road in Ravensdale. The goal of this project is to create, enhance and conserve valuable fish habitat in Rock Creek, while supplying water to the City. Acquiring this property will allow the City to establish a conservation easement for the purpose of improving water quality and protecting salmon populations within Rock Creek. The property, which has a single-family residence with frontage along Rock Creek and consists of 54,014 square feet, and is recommended that the City purchase this parcel for the fair market value of $540,000 MOTION: Authorize the Mayor to sign all documents necessary for the purchase of property located at 26127 S.E. Kent- Kangley Road, in Ravensdale (APN 252206-9100), from John and Patricia Phillips, in an amount not to exceed $540,000.00, subject to final terms and conditions acceptable to the City Attorney and Public Works Director. RESULT: RECOMMENDED TO COUNCIL BY CONSENSUS Next: 9/15/2020 7:00 PM 3. INFO ONLY: Small Business Grant Update Chief Economic Development Officer, Bill Ellis provided an update on the CARES Act Funds and Small Business Emergency Relief Grants. Ellis indicated that 98% of the grant funds have been distributed at this point. He also provided statistics on the demographics of the applicant pool as well as the selected applicants. As of today, 211 of the 217 grants have been awarded and 5 have been unresponsive to calls/emails. Ellis noted that there are 90 remaining eligible applications, and there will be Kent City Council - Committee of the Whole Committee of the Whole - Regular Meeting Minutes September 8, 2020 Kent, Washington Page 3 of 4 an additional $601,300 in relief funds distributed. He noted, this process will take anywhere from two to three weeks. 4. INFO ONLY: July Financial Report Senior Financial Analyst, Michelle Ferguson presented the July Financial Report. She highlighted some key areas of interest: - Revenues received through June are down approximately $3m, primarily due to licenses and permits, intergovernmental charges for services and miscellaneous revenues. - Sales Tax is $1.35m under June 2019 year-to-date revenues due to the ending of the annexation sales tax credit and accruals. - B&O tax is $726k over 2019 year-to-date revenues. The increase in B&O revenues is due to the increase in square footage rates. - Utility tax is $476k over 2019 YTD revenues. - General Fund Expenditures are $2.7m over what they were in 2019. Most departments are coming in under budget. Overall expenditures are at 42%, which by this time of year you would expect to see nearer 50%. This is due to the central cost allocation plan and the COVID cuts. 5. Payment of Bills Finance Director, Paula Painter provided the Council with a copy of the payment of bills. MOTION: Approve the payment of bills received through 8/31/20 and paid on 8/31/20 and approve the checks issued for payroll 8/16/20-8/31/20 and paid on 9/4/20, that were audited by the Committee of the Whole on 9/8/20. RESULT: RECOMMENDED TO COUNCIL BY CONSENSUS Next: 9/15/2020 7:00 PM 6. Ordinance Extending the Square Footage Component of the City's B&O Tax to Include Outdoor Warehousing Activities - Adopt Finance Director, Paula Painter spoke about the ordinance to extend the square footage component of the City's business and occupation tax to include outdoor warehousing activities. This proposed amendment to the square footage component of the City’s B&O tax will become effective January 1, 2021 and is primarily designed to promote taxpayer equity between businesses that conduct certain warehousing activities outside of their facilities and those businesses that do not conduct these activities. This amendment will ensure that all warehousing activities are subject to the same tax rate. This ordinance establishes a six-acre threshold (361,360 square feet) above which specific areas of the property used for warehousing activities will be subject to outdoor square footage tax. Many outdoor areas Kent City Council - Committee of the Whole Committee of the Whole - Regular Meeting Minutes September 8, 2020 Kent, Washington Page 4 of 4 not used for warehousing activities will remain untaxed. This ordinance does not change the rate of the City’s B&O tax. According to Painter, approximately 6 businesses would be impacted by this amendment and would generate about $2.1m in revenue. Councilmember Boyce sought and received confirmation that the City has done appropriate outreach to affected businesses. Councilmember Michaud inquired about the use of the funds being discussed. Chief Administrative Officer, Derek Matheson addressed the inquiry by pointing out that nothing in the ordinance changes how the B&O taxes are allocated, it simply increases the amount of funds available. MOTION: Adopt Ordinance No. 4368 amending Section 3.28.050 of the Kent City Code to extend the square footage component of the City of Kent business and occupation tax to include outdoor warehousing activities. RESULT: RECOMMENDED TO COUNCIL BY CONSENSUS Next: 9/15/2020 7:00 PM 5. ADJOURNMENT Council President Troutner adjourned the meeting at 4:55 PM. Meeting ended at 4:55 p.m. Kimberley A. Komoto City Clerk Dougherty Property Transactions S. 224TH STREET PROJECT PHASE II Dougherty Property Parcel No. 880240-0020 21920 93rd Avenue S. Phillips Property Acquisition Clark Springs Habitat Conservation Measures Phillips Property 26127 SE Kent -Kangley Road, Ravensdale CARES Act Funds Update Small Business Emergency Relief Grant Bill Ellis, Chief Economic Development Officer September 8th, 2020 Small Business Grants Work Stream Updating -Timeline Follow-UpOutreachApplication intake Decide grant awards Notifi- cations, forms Application materials Accounce- ment Design grant program Sign & disburse funds Late July, Early AugustEarly June Mid-July Opened July 13th Extended application intake from July 27th until August 9th October 98% Disbursed Competitive Evaluative Scoring -identified from historically underrepresented group priority -lower income or no other aid prioritization -level of Covid-19 impacts on operations -goal is to triage relief Eligibility Criteria To be eligible, businesses must: •Be a for-profit business physically located within the Kent city limits •Be negatively impacted by COVID-19 closures and interruptions •Not received other forms of federal or state Covid-19 aid •Have no more than 15 full-time employees •Have been in business for at least three (2) two years as of June 30, 2020 •Have gross annual revenues of $1.5 million or less •Have a current City of Kent Business License and not be delinquent in payment of taxes or fees owned to the City of Kent as of December 31, 2019. (It’s not too late to get a City of Kent business license –our team can process license applications in about 24 hours.) •If closed due to government mandates, the business intends to reopen when allowed under Washington’s Safe Start plan •See KentWA.gov/BusinessGrant for full list of eligibility requirements Applications are now closed. Applications Statistics Thanks to Community Helpers And many other helpers unaffiliated! •539 unique applications received •Nearly 100 applicants indicated they received technical assistance •Top listed sources of referrals by businesses: City of Kent, World Relief, Kent Downtown Partnership, Ismael Mohamed, Kent Reporter, Childcare Resources, Community Lab, Kent Station, Kent Chamber of Commerce, Iraqi Community Center Demographics of Applicant Pool Preferred language: •Arabic 6 •Punjabi 4 •Russian 7 •Somali 30 •Spanish 28 •Vietnamese 19 •Other-write in 10 (Korean 6, Ukrainian 1, Japanese 1, Chinese 1, Dari 1) Racial Ethnicity •< 1% American Indian or Alaskan Native •26% Asian •20% Black or African American •8.2% LatinX or Hispanic •~1% Native Hawaiian or other Pacific Islander •2% Two or more races •24.5% White •2.5% Other •~2% Prefer not to Disclose •Remainder 12-13% left this field blank Woman -owned ~45% Veteran -owned <2.5% Demographics of Selected Applications Grants Awarded (#) Grants Awarded ($) Minority Owned Woman- Owned Veteran - Owned Avg. Jobs Lost (%) Avg. 2019 Bus. Revenues ($) Avg. Years in Business (#) Avg. Household Income ($) 217* 1,410,500 72%58%3%10%234,118 11 77,524 *211 disbursements by Close of Business today 5 are unresponsive to calls/emails and may force to rescind selection Remaining Eligible Applications •90 remaining eligible applications (217 selected for funding so far) •Allocating an additional $617,500 to relief effort given City is receiving more CARES Act funding from state Department of Commerce. These funds will go to those eligible, unselected businesses on wait list and a flat fee of $16,625 for Craft3 •Estimate will take two, three weeks to fund remainder •Craft3 activities extend beyond wiring funds to include communications, technical troubleshooting, and CARES Act compliance paperwork and records retention, which accounts for their fees and expenses. Why Businesses Most Often Deemed Ineligible •91 failed the test: Have no owner, officer, partner, or principal actor of the business who is currently employed by City of Kent or who is an immediate family member (spouse, sibling) of a current City of Kent employee •67 failed the test: Have been in business for at least two years as of June 30, 2020 •47 failed the test: Have no more than 15 full-time employees •46 failed the test: Have a current City of Kent Business License and not be delinquent in payment of taxes or fees owned to the City of Kent as of December 31, 2019 Thank you. WEllis@KentWA.gov | 206-573-6890 City of Kent, WA July 2020 Monthly Financial Report Committee of the Whole September 8, 2020 Prepared by: Michelle Ferguson, Financial Planning Manager Shane Sorenson, Senior Financial Analyst General Fund : General Fund Revenues (page 2) General Fund Revenues ($ in Thousands) (page 3) General Fund Revenues ($ in Thousands) (page 4) General Fund Year-to -Year Monthly Comparison (page 7) Other Funds Revenue Funds –Year -to-Year Month Comparison (page 12) Other Funds Revenue Funds –Year -to-Year Month Comparison (page 13) Other Funds Revenue Funds –Year -to-Year Month Comparison (page 14)