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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 02/05/2019 Unless otherwise noted, the Operations Committee meets at 4 p.m. on the first and third Tuesday of each month in Kent City Hall, Council Chambers East, 220 Fourth Ave nue South, Kent, WA 98032. For additional information please contact Cathie Everett at 253-856-5705, or via email at CEverett@KentWA.gov. Any person requiring a disability accommodation should contact the City Clerk’s Office at 253-856-5725 in advance. For TDD relay service call Washington Telecommunications Relay Service at 7-1-1. Operations Committee Agenda Chair - Les Thomas Bill Boyce– Dennis Higgins Tuesday, February 5, 2019 4:00 p.m. Item Description Action Speaker Time 1. Call to Order Chair 01 MIN. 2. Roll Call Chair 01 MIN. 3. Changes to the Agenda Chair 01 MIN. 4. Approval of January 15, 2019 Minutes YES Chair 05 MIN. 5. Approval of Check Summary Report Dated 1/1/2019- 1/15/2019 YES Chair 05 MIN. 6. Stop Loss Insurance Contract YES Human Resources Director Marty Fisher and Benefits Manager Laura Horea 05 MIN. 7. Vitality Wellness Program Contract YES Human Resources Director Marty Fisher and Benefits Manager Laura Horea 10 MIN. 8. Barokas Communications Contract - PR & Marketing for Economic Growth and Business Travel YES Chief Economic Development Officer Bill Ellis 15 MIN. 9. Annexation Sales Tax Credit Certification YES Deputy Finance Director Barbara Lopez 05 MIN. 10. S. 224th/228th Street Corridor Funding NO Finance Director Aaron BeMiller 10 MIN. 11. Adjournment Chair 01 MIN. Page 1 of 3 Pending Approval Operations Committee CC Ops Regular Meeting Minutes January 15, 2019 Date: January 15, 2019 Time:4:00 p.m. Place:Chambers Attending:Les Thomas, Committee Chair Bill Boyce, Councilmember Dennis Higgins, Councilmember Agenda: 1.Call to Order 4:03 p.m. 2.Roll Call Attendee Name Title Status Arrived Les Thomas Committee Chair Present Bill Boyce Councilmember Present Dennis Higgins Councilmember Present 3.Changes to the Agenda 4.Approval of Minutes dated December 4, 2018 MOTION: Move to approve the Minutes dated December 4, 2018 RESULT:APPROVED [UNANIMOUS] MOVER:Dennis Higgins, Councilmember SECONDER:Bill Boyce, Councilmember AYES:Thomas, Boyce, Higgins 5.Approval of Check Summary Reports Dated 11/16/18-11/30/18, 12/1/18-12/15/18 & 12/16/18-12/31/18 MOTION: Move to approve the check summary reports dated 11/16/18-11/30/18, 12/1/18-12/15/18 and 12/16/18-12/31/18 RESULT:APPROVED [UNANIMOUS] MOVER:Bill Boyce, Councilmember SECONDER:Dennis Higgins, Councilmember AYES:Thomas, Boyce, Higgins 6.Briefing on the City's 2019 Insurance Programs Risk Manager Chris Hills presented a briefing on the City's 2019 insurance program premium rates for 2019. Liability: The City's Self-Insured Retention (SIR) remains $500,000 per loss. There is an overall increase of 1.9% above the 2018 premium for the first and second layer of coverage and the City has elected to add a third layer of coverage with a premium of $17,850. This 4 Packet Pg. 2 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J a n 1 5 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) Operations Committee CC Ops Regular Meeting Minutes January 15, 2019 Kent, Washington Page 2 of 3 combined level of coverage is now becoming the standard for municipal liability. Worker Compensation: Due to the tragedy of July 22nd, our Excess Worker Comp insurer has imposed a new $600,000 SIR (up from $500,000) and, after significant loss payments in 2018, a premium increase of 17% was included in the renewal. A two-year flat premium was negotiated. Cyber Risk: The premium was renewed at the same rate with the same limits as 2018. 7.Comcast Cable Communications Management, LLC Public Comment Opportunity Information Technology Director Mike Carrington provided a report outlining the history of the current cable franchise and the negotiation process for a new cable franchise and dark fiber agreement with Comcast, which spanned several years. President Boyce asked whether we anticipate any changes to the level of service and Mr. Carrington reported that the community should not see a difference in the level of service. Councilmember Higgins asked questions regarding the negotiated fees and whether the agreement is fair and equitable in relation to surrounding cities and the answer is yes. Following the presentation the public was provided the opportunity for comment. There were no public comments. Committee members and Mike Carrington expressed appreciation to staff for the hard work that went into the long negotiation process. Comcast Representative Terry Davis also thanked staff for their efforts and commented that he feels a fair agreement was reached. 8.Comcast Cable Franchise & Dark Fiber Agreement Following Mike Carrington's report on the Comcast Cable Franchise and Dark Fiber Agreement and the public comment opportunity, council voted unanimously on the following motion: MOTION: Recommend Council adopt an ordinance granting a 10- year cable franchise to Comcast Cable Communications Management, LLC, and authorize the Mayor to sign all documents necessary to implement the full terms of the City’s franchise grant, including the Letter Agreement, the Settlement Agreement, and the Dark Fiber Agreement, all subject to final terms and conditions acceptable to the City Attorney and Director of Information Technology. RESULT:RECOMMENDED TO COUNCIL [UNANIMOUS]Next: 2/5/2019 7:00 PM MOVER:Dennis Higgins, Councilmember SECONDER:Bill Boyce, Councilmember AYES:Thomas, Boyce, Higgins 9.Consolidating Budget Adjustment Ordinance for Adjustments between 12/1/18 and 12/30/18 4 Packet Pg. 3 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J a n 1 5 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) Operations Committee CC Ops Regular Meeting Minutes January 15, 2019 Kent, Washington Page 3 of 3 Deputy Finance Director Barbara Lopez requested authorization to approve the technical gross budget adjustment ordinance reflecting an overall budget increase of $820,500. These budget adjustments have not previously been approved by Council and are necessary to ensure sufficient budget authority for the affected funds. These expenditures are within existing fund balance or other revenues. MOTION: Recommend Council approve the consolidating budget adjustment ordinance for adjustments made between December 1, 2018 and December 30, 2018, reflecting an overall budget increase of $820,500. RESULT:RECOMMENDED TO COUNCIL [UNANIMOUS]Next: 2/5/2019 7:00 PM MOVER:Bill Boyce, Councilmember SECONDER:Dennis Higgins, Councilmember AYES:Thomas, Boyce, Higgins 10.Adjournment p.m. The meeting was adjourned at 4:40 p.m. Cathie Everett Committee Secretary 4 Packet Pg. 4 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J a n 1 5 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: February 5, 2019 TO: Operations Committee SUBJECT: Approval of Check Summary MOTION: Move to approve the check summary report dated 1/1/2019 through 1/15/2019. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services RECOMMENDED BY: Aaron BeMiller 5 Packet Pg. 5 OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: February 5, 2019 TO: Operations Committee SUBJECT: Stop Loss Insurance Contract MOTION: Recommend Council authorize the Mayor to approve renewal of the City’s contract for Stop Loss Insurance with LifeWise for one year, subject to approval of final terms and conditions by the Human Resources Director and the City Attorney. SUMMARY: The City of Kent contracts with LifeWise Assurance Company for our individual and aggregate stop loss insurance coverage. We received three competitive illustrative bids. The best offer, a 19.1% increase, was from LifeWise and it factors in the discount provided by Premera on the stop loss integration fee. Based on this, our recommendation is to renew with LifeWise for 2019. Background: The City offers self-insured medical plans that are administered through Premera Blue Cross. All City employees and their dependents that are enrolled in the City’s self-insured medical program are covered under a stop loss insurance policy. This stop loss policy provides added coverage to the City for individual medical claims exceeding $200,000 per employee or dependent for each calendar year. All medical costs exceeding $200,000 per enrollee per year will be reimbursed to the City under this policy. We received over $1,000,000 in stop loss reimbursements in 2018. BUDGET IMPACT: Lifewise - $761,000 for a one (1)-year contract. The cost of the City’s stop loss insurance is budgeted in the Health & Wellness fund. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services RECOMMENDED BY: Marty Fisher ATTACHMENTS: 6 Packet Pg. 6 1. 2 - LifeWise Contract Amendment 2019 (PDF) 6 Packet Pg. 7 SLP W A AMD (09-08)Amendment AM ENDMENT NO. 10 This amendment becomes a part of Stop Loss Policy No. W A 518212-9999 issued to City of Kent, the Policyholder. It is stipulated and agreed that: Effective January 1, 2019: The following section is replaced: Section 1, Schedule of Coverage. All other terms and conditions of the contract remain unchanged.This amendment is signed for us at Mountlake Terrace, W ashington on the policy amendment effective date. City of Kent LifeWise Assurance Company ______________________________ Michael L. Krutt ______________________________President Date of Signature Instructions:1.Sig n and return original to us. 2.Retain copy with your policy. 6.a Packet Pg. 8 At t a c h m e n t : 2 - L i f e W i s e C o n t r a c t A m e n d m e n t 2 0 1 9 ( 1 5 7 8 : S t o p L o s s I n s u r a n c e C o n t r a c t ) SLP W A (10-10)2 Schedule of Coverage POLICY PERIOD:January 1, 2019 through December 31, 2019 Coverage provided if checked 1.1 AG GREGATE STOP LOSS Attachment Level:120%125% Other: 200% Aggregate Expense Incurral Period:From January 1, 2010 through December 31, 2019 Aggregate Expense Payment Period:From January 1, 2019 through December 31, 2019 A.Covered Benefits:Medical Rx Dental Vision B.Monthly Factor: Number of Employees Monthly Factor (Composite) 712 $2,870.28 C.Minimum annual aggregate deductible: The greater of: 1.$24,523,712; or 2.95% of the first monthly aggregate deductible times 12. D.Annual aggregate deductible (Aggregate Attachment Point): The greater of: 1.The sum of the monthly aggregate deductible amounts for each policy month in the Policy Period; or 2.The minimum annual aggregate deductible. Note: The annual aggregate deductible cannot be finalized until the monthly aggregate deductible amounts are calculated for each policy month of the Policy Period. E.Limit of Liability:We will reimburse 100% of eligible expenses you pay under your Plan in excess of the deductible to a maximum of $1,000,000. F.Claim Review is end of Policy Period Monthly with $threshold. G.Monthly Premium Rate: $0.02 per Employee 1.2 SPECIFIC STOP LOSS Specific Expense Incurral Period:From January 1, 2010 through December 31, 2019 Specific Expense Payment Period:From January 1, 2019 through December 31, 2019 A.Covered Benefits:Medical Rx Dental Vision B.$200,000 Individual Specific Deductible per person. C.N/A Aggregating Specific Deductible per contract year. D.Limit of Liability:We will reimburse 100% of eligible expenses you pay under your Plan in excess of the deductible.The maximum we will reimburse you per person: Annual Maximum:$Unlimited Lifetime Maximum:$Unlimited E.Specific Advanced Funding:Yes No F.Monthly Premium Rate: Employee Only: $Family Rate: $ Composite: Employee & Dependent:$92.01 1.3 TERMINAL LIABILITY PROTECTION Number of months: SECTION 1 SCHEDULE OF COVERAGE City of Kent WA 518212-9999 Effective 01-01-19 6.a Packet Pg. 9 At t a c h m e n t : 2 - L i f e W i s e C o n t r a c t A m e n d m e n t 2 0 1 9 ( 1 5 7 8 : S t o p L o s s I n s u r a n c e C o n t r a c t ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: February 5, 2019 TO: Operations Committee SUBJECT: Vitality Wellness Program Contract MOTION: Recommend Council authorize the Mayor to sign a contract with The Vitality Group, LLC to provide a wellness platform and wellness program for an initial term of 3 years with the option to renew automatically for a successive period of 1 year, subject to approval of final terms and conditions by the Human Resources Director and the City Attorney. SUMMARY: Employee health and well-being continues to be a priority for the City as we head into 2019. Working with a Wellness platform that offers a solid plan design and meets the functionality needs of our employees is critical for our Wellness Program. Starting in August 2018 members of the Wellness Committee, the Human Resources team and our benefits broker have partnered in the Wellness Vendor selection process. They have reviewed demos, analyzed feedback from employee focus groups and participated in finalist presentations. The four finalists were Optum, WellRight, Bravo and Vitality. Based on the demos and references received, Vitality was selected by the review committee as the best qualified to meet our needs. BUDGET IMPACT: The Vitality Group, LLC. - $174,285 for a three (3)-year contract. The cost of the Wellness program is budgeted in the Health & Wellness fund. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services ATTACHMENTS: 1. Vitality Benefits and Rates Proposal 2019_2021 (PDF) 2. coke-vendor-compare-slide-013019 (PDF) 7 Packet Pg. 10 WELLNESS BENEFITS & RATES Eligible Count Vitality Company Name City of Kent Contract Duration 3 years 2019-2021 Annual increase , if applicable Eligibility All medical eligible employees 675 Annual Fees One-Time Implementation Fee $4,500 Renewal Fees NA Biometric Data Upload Fees $2,000/feed Base Monthly Fee PEPM1 All eligible employees 675 $4.85 Include spouses $0.60 Monthly Minumums, if applicable Base Program Features Web portal (includes health assessment)Included Incentive tracking Included Employer reporting Included Communications Included Health Challenges Included Account Management support Included Biometric Screening2 per participant Onsite Biometrics (Estimated at 40% of total = 270)$53.00 $14,310.00 Estimated Annual Base Program Fees $43,785.00 Estimated Annual Biometric Screening Fees $14,310.00 Estimated Combined Annual Fees $58,095.00 1 Annual costs are estimates and may not include optional incentives and/or specialized services. 2 For screenings, 40% employee participation assumption based on 2018 Viverae report. Optional Services and Fees Activity Monitor Integration Included Physician form upload $3 per form Travel - Onsite Meetings Included © 2017 Alliant Insurance Services, Inc. All rights reserved.5 7.a Packet Pg. 11 At t a c h m e n t : V i t a l i t y B e n e f i t s a n d R a t e s P r o p o s a l 2 0 1 9 _ 2 0 2 1 ( 1 5 7 9 : V i t a l i t y W e l l n e s s P r o g r a m C o n t r a c t ) Vendor Finalist Review 1 Personalized Program & Customization     User-Experience & Technology     Privacy & Confidentiality Strategy     Plan Design & Ongoing Engagement Strategy     Incentives & Rewards     Leadership Engagement Strategy     Account Management & Customer Service     Other Concerns •Self-reporting •Cost •Not many device options •Mobile application concerns •Different portal for physical activity •Too many clicks makes portal confusing to navigate •Challenges feels childish •Self-reporting •Information overload  7.b Packet Pg. 12 At t a c h m e n t : c o k e - v e n d o r - c o m p a r e - s l i d e - 0 1 3 0 1 9 ( 1 5 7 9 : V i t a l i t y W e l l n e s s P r o g r a m OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: February 5, 2019 TO: Operations Committee SUBJECT: Barokas Communications Contract - PR & Marketing for Economic Growth and Business Travel MOTION: Recommend Council approve a contract with Barokas Communications to provide public/media relations and marketing services to promote the Kent Valley as a business destination. SUMMARY: To promote the Kent Valley, not only a business destination, but as a center of aero and outer space innovation, Barokas Communications will leverage business news stories originating in the Kent Valley to pitch business, trade, and travel media to further Kent’s economic interests. Promotion of business stories and City initiatives to regional and national media outlets will help attract direct investment and grow the economy, while also encouraging more business travelers and spending in Kent. Recruitment of businesses or local industry-related events, in addition to driving more business travel into Kent, (to visit either real estate or other Kent firms) is a planned outcome of the scope of work with Barokas Communications. Barokas Communications is an award-winning, and well-known firm in the region and represents clients such as the Washington Technology Industrial Association and TechStars along with several “new space” commercial outer space manufacturers. Their expertise in both the aerospace and outer space sectors makes Barokas Communications (based in Seattle) best-positioned with the appropriate expertise, industry acumen, and stakeholder and media relationships to help the City achieve its goals. Furthermore, Barokas’ experience representing clients such as Apprenti, that promote career-connected learning and apprenticeships is uniquely relevant to the City’s Economic Development strategies around the promotion of STEM and recent investments in advanced manufacturing apprenticeship programs. BUDGET IMPACT: $75,000 Lodging Tax Account $25,000 Rally the Valley – General Fund SUPPORTS STRATEGIC PLAN GOAL: 8 Packet Pg. 13 Thriving City, Innovative Government, Sustainable Services ATTACHMENTS: 1. City of Kent_Barokas_Scope of Work (PDF) 2. CityofKent_timeline_1.29 (PDF) 8 Packet Pg. 14 SCOPE OF WORK $8,000 PER MONTH SERVICE DESCRIPTION QUARTERLY DELIVERABLE PLANNING Develop communication plan inclusive of rich history of Kent’s aerospace innovation, and focus on content that establishes the region. Meet with partners to consult on strategy and execution of PR and messaging. Quarterly communications plan MEDIA RELATIONS Maintain steady cadence of proactive and response media outreach to local, national and industry to garner coverage. Draft and distribute one press release to announce the branding of Kent Space Valley Vet editorial opportunities for participation. Build valued relationships with reporters to continue lifecycle of coverage. 2-3 proactive media campaigns (per quarter). Unlimited response outreach. 1 press release Unlimited delivery of prep materials and staffing of media briefings. SOCIAL MEDIA SCAVENGER HUNT* Develop social media scavenger hunt which includes clues, Tweets, media alert and pitching to drive interest and involvement 1 social media scavenger hunt WEBSITE MANAGEMENT Working with third-party resource The Medium, manage the website re- launch. 1 website launch REPORTING Bi-weekly account team syncs; quarterly media coverage recaps to include media placements, number of impressions and social shares. N/A * Month where scavenger hunt is executed will be billed at $12,000 8.a Packet Pg. 15 At t a c h m e n t : C i t y o f K e n t _ B a r o k a s _ S c o p e o f W o r k ( 1 5 8 0 : B a r o k a s C o m m u n i c a t i o n s ÞßÎÑÕßÍòÝÑÓ Í»¿¬¬´»ô Éß ı Ü»²ª»®ô ÝÑ ñ îðêóîêìóèîîð ñ ¸»´´±à¾¿®±µ¿-ò½±³ 8.b Packet Pg. 16 At t a c h m e n t : C i t y o f K e n t _ t i m e l i n e _ 1 . 2 9 ( 1 5 8 0 : B a r o k a s C o m m u n i c a t i o n s C o n t r a c t - P R & M a r k e t i n g f o r E c o n o m i c G r o w t h a n d B u s i n e s s T r a v e l ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: February 5, 2019 TO: Operations Committee SUBJECT: Annexation Sales Tax Credit Certification MOTION: Recommend Council approve the resolution certifying the Panther Lake annexation sales tax credit of $6,051,710 for the period July 1, 2019 through June 30, 2020. SUMMARY: The City is required to certify to the State of Washington before March 1st of each year, the amount needed from the annexation sales tax credit to provide services in the annexed area. The Finance Department has calculated estimated costs and revenues within the Panther Lake annexation area and has determined a gap between revenues generated and expenditures used to provide services of $6,051,710 for July 1, 2019 through June 30, 2020. This certification period is the final year the City will receive the annexation sales tax credit, which expires June 30, 2020. BUDGET IMPACT: Estimated costs for the Panther Lake annexation area for the State’s fiscal year 2019 is anticipated to be $15,710,990 in expenditures to provide City services to those residents, while we anticipate revenues of $9,659,280 from property taxes, sales taxes and other sources. The net of the revenues and costs produces a deficit of $6,051,710, which is the amount being certified as the amount of annexation sales tax credit we are requesting from the State. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services RECOMMENDED BY: Aaron BeMiller ATTACHMENTS: 1. Annexation Sales Tax Threshold 2019 - Resolution (PDF) 9 Packet Pg. 17 1 Tax Credit Threshold Panther Lake Annexation RESOLUTION NO. ___________ A RESOLUTION of the City Council of the City of Kent, Washington, determining a new threshold amount for the sales and use tax authorized by RCW 82.14.415 and codified in Chapter 3.27 of the Kent City Code, relating to the cost of providing municipal services to the Panther Lake Annexation Area for the 2019 fiscal year, and authorizing the Finance Director to certify the threshold amount to the Washington State Department of Revenue. RECITALS A. RCW 82.14.415 authorizes the City to impose a sales and use tax as a credit against state retail sales and use taxes collected under Chapters 82.08 and 82.12 RCW to assist the City in providing municipal services to newly annexed areas. B. After providing all appropriate notice and following appropriate procedure, and following a favorable vote on the annexation proposition, the Kent City Council adopted Ordinance No. 3936 on December 8, 2009, approving the Panther Lake Annexation Area effective July 1, 2010. The population within the annexation area determined at the time of annexation was 25,458 people. 9.a Packet Pg. 18 At t a c h m e n t : A n n e x a t i o n S a l e s T a x T h r e s h o l d 2 0 1 9 - R e s o l u t i o n ( 1 5 8 1 : A n n e x a t i o n S a l e s T a x C r e d i t C e r t i f i c a t i o n ) 2 Tax Credit Threshold Panther Lake Annexation C. On February 16, 2010, the City Council passed Ordinance No. 3947, creating Chapter 3.27 of the Kent City Code and imposing the sales and use tax at the rate of 0.2 percent. D. On February 15, 2011, the City Council adopted Resolution No. 1839 confirming the tax rate at 0.2 percent and authorizing the finance director to certify the threshold amount for the 2011 fiscal year. E. On February 7, 2012, through Resolution No. 1853, the City Council adopted a new threshold amount for the 2012 fiscal year and authorized the finance director to certify the same. F. On February 19, 2013, through Resolution No. 1871, the City Council adopted a new threshold amount for the 2013 fiscal year and authorized the finance director to certify the same. G. On February 4, 2014, through Resolution No. 1881, the City Council adopted a new threshold amount for the 2014 fiscal year and authorized the finance director to certify the same. H. On February 17, 2015, through Resolution No. 1904, the City Council adopted a new threshold amount for the 2015 fiscal year and authorized the finance director to certify the same. I. On February 16, 2016, through Resolution No. 1920, the City Council adopted a new threshold amount for the 2016 fiscal year and authorized the finance director to certify the same. J. On February 21, 2017, through Resolution No. 1940, the City Council adopted a new threshold amount for the 2017 fiscal year and authorized the finance director to certify the same. 9.a Packet Pg. 19 At t a c h m e n t : A n n e x a t i o n S a l e s T a x T h r e s h o l d 2 0 1 9 - R e s o l u t i o n ( 1 5 8 1 : A n n e x a t i o n S a l e s T a x C r e d i t C e r t i f i c a t i o n ) 3 Tax Credit Threshold Panther Lake Annexation K. On February 20, 2018, through Resolution No. 1958, the City Council adopted a new threshold amount for the 2018 fiscal year and authorized the finance director to certify the same. L. With this Resolution, the City authorizes the imposition of similar annexation sales and use taxes for the 2019 fiscal year, which is the final year the City is able to impose this tax. M. The City Council of the City of Kent, Washington, finds and determines that the projected cost to provide municipal services to the Panther Lake Annexation Area for the 2018 fiscal year will be at least $15,710,990, and that this cost exceeds the projected general revenue that the City would otherwise receive from the annexation during the 2019 fiscal year, which is estimated to be $9,659,280. N. Pursuant to RCW 82.14.415, the City of Kent is authorized, under the circumstances of this annexation, to impose a sales and use tax for the 2019 fiscal year, which shall be collected by the State department of revenue from those persons who are taxable by the state under Chapters 82.08 and 82.12 RCW, upon the occurrence of any taxable event within the City. O. The rate of tax imposed shall be 0.2 percent, and shall be in addition to other taxes authorized by law, and the threshold amount for the 2019 fiscal year is $6,051,710. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: RESOLUTION 9.a Packet Pg. 20 At t a c h m e n t : A n n e x a t i o n S a l e s T a x T h r e s h o l d 2 0 1 9 - R e s o l u t i o n ( 1 5 8 1 : A n n e x a t i o n S a l e s T a x C r e d i t C e r t i f i c a t i o n ) 4 Tax Credit Threshold Panther Lake Annexation SECTION 1. – Rate and Threshold Amount. The Kent City Council determines that the threshold amount for the City’s projected net cost in providing municipal services to the Panther Lake Annexation Area for the 2019 fiscal year is $6,051,710. The City Council previously imposed a sales and use tax at the rate of 0.2 percent, with the passage of Ordinance No. 3947 on February 16, 2010. SECTION 2. – Implementation and certification. The Mayor of the City of Kent is authorized to implement administrative procedures as may be necessary to carry out the provisions of this resolution. The City’s Finance Director is authorized to certify the amount for the 2019 fiscal year to the appropriate agencies within the State of Washington. SECTION 3. – Severability. If any section, subsection, paragraph, sentence, clause or phrase of this resolution is declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of this resolution. SECTION 4. – Savings. Resolution No. 1958 shall remain in full force and effect until the effective date of this resolution. SECTION 5. – Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed. SECTION 6. – Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this resolution, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or resolution numbering and section/subsection numbering. 9.a Packet Pg. 21 At t a c h m e n t : A n n e x a t i o n S a l e s T a x T h r e s h o l d 2 0 1 9 - R e s o l u t i o n ( 1 5 8 1 : A n n e x a t i o n S a l e s T a x C r e d i t C e r t i f i c a t i o n ) 5 Tax Credit Threshold Panther Lake Annexation SECTION 7. – Effective Date. This resolution shall take effect and be in force immediately upon its passage, however the imposition of the sales and use taxes for the 2019 state fiscal year authorized by this resolution shall not take effect until the commencement of that fiscal year. PASSED at a regular open public meeting by the City Council of the city of Kent, Washington, this _______ day of _________________, 2019. CONCURRED in by the Mayor of the city of Kent this ______ day of __________________, 2019. DANA RALPH, MAYOR ATTEST: KIMBERLEY A. KOMOTO, CITY CLERK APPROVED AS TO FORM: ARTHUR FITZPATRICK, CITY ATTORNEY P:\Civil\Resolution\Annexation Sales Tax Threshold 2019 - Resolution.docx 9.a Packet Pg. 22 At t a c h m e n t : A n n e x a t i o n S a l e s T a x T h r e s h o l d 2 0 1 9 - R e s o l u t i o n ( 1 5 8 1 : A n n e x a t i o n S a l e s T a x C r e d i t C e r t i f i c a t i o n ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: February 5, 2019 TO: Operations Committee SUBJECT: S. 224th/228th Street Corridor Funding SUMMARY: The Finance Director and Public Works Director shall provide the Committee with a report on financing recommendations for the S. 224th/228th St. Corridor Project. The South 224th/228th Street Corridor project consists of a grade separation at the Union Pacific crossing, improvements along S 228th between 68th Ave S and 76th Ave S, and 88th Ave S and S 218th St from S 222nd St to 94th Pl S. These corridor improvements are critical to meeting commitments made in the mid 80’s to provide an east/west corridor. The project builds on the success of completed projects (Veteran’s Drive, Burlington Northern Santa Fe Grade Separation, and South 224th Street Phase 1) and connects our businesses and residents to the growth areas on Kent West Hill and transportation corridors. BUDGET IMPACT: There is a significant budget impact to the affected fund the Council chooses to use to complete the funding necessary. It is presumed that this will be the B&O fund. 1/18/2019 S. 228TH/224TH ST. CORRIDOR FUNDING $ are in Millions PROJECT FUNDING UPRR GRADE S. 224TH ST. SOURCE SEPARATION PHASE 2 TOTAL FEDERAL $6.4 $6.4 STATE (TIB) $3.5 $5.0 $8.5 STATE (Connect WA) $15.0 $15.0 UPRR/BNSF RR $1.2 $1.2 PORT OF SEATTLE $0.6 $0.6 TIF/PROJ TRANSFER $3.5 $3.5 UTILITIES (OUTSIDE) $0.6 $0.2 $0.8 CITY/CITY UTILITY $7.7 $5.0 $12.7 10 Packet Pg. 23 1/18/2019 S. 228TH/224TH ST. CORRIDOR FUNDING $ are in Millions PROJECT FUNDING UPRR GRADE S. 224TH ST. SOURCE SEPARATION PHASE 2 TOTAL TOTAL FUNDING $35.0 $13.7 $48.7 PROJECT COST $40.4 $14.9 $55.3 Balance to Complete $5.4 $1.2 $6.6 UPRR Grade Separation does not include costs for 228th St Bike Lane funded by a separate grant and project number SUPPORTS STRATEGIC PLAN GOAL: Evolving Infrastructure, Sustainable Services 10 Packet Pg. 24