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HomeMy WebLinkAboutCity Council Meeting - Council - Minutes - 11/6/2018Kent City Council Regular Meeting Minutes November 6, 2018 Kent, Washington Approved November 20, 2OL8 Date: Time: PIace: November 6,2OL8 5 p.m. Council Chambers East/West Agenda: 1. Call to Order The meeting was called to order at 5:02 p.m, with Mayor Ralph presiding 2. Roll Call Mayor Ralph - Present Council President Boyce - Present Brenda Fincher, Councilmember - Present Dennis Higgins, Councilmember - Present Satwinder Kaur, Councilmember - Present Marli Larimer, Councilmember - Present Les Thomas, Councilmember - Excused Absence Toni Troutner, Councilmember - Present 3. Chanqes to the Agenda Derek Matheson, Chief Administrative Officer, added item 8M. "Excused Absence for Councilmember Thomas" to the agenda. Boyce Moved to approve the agenda as amended, seconded by Higgins. The motion passed unanimously with a vote of 6-O. 4. PublicCommunications A. Public Recognition Mayor Ralph invited multiple Kentwood High School students to speak regarding their attendance during tonight's meeting as a requirement of their civic engagement projects. Council President Boyce recognized Councilmembers Kaur and Troutner for their participation in the dance competition during the recent Kent Hope fundraiser. Employee of the Month Mayor Ralph recognized Margaret Yetter, Kent Municipal Court Administrator, as the November 2018 Employee of the Month. B Proclamation for Veteran's Da of Remembrance Mayor Ralph read the proclamation and indicated that Marcus Shelton was unable to attend tonight's meeting to accept the proclamation. Community Events Boyce provided details regarding past and upcoming events at the accesso ShoWare Center. Visit accessoShoWarecenter.com for ticketing information. Page 1 of 11 Kent City Council Regular Meeting Minutes November 6, 2018 Kent, Washington Approved November 20, 2Ot8 Fincher extended an invitation for everyone to attend the upcoming Holiday Bazaar at Kent Commons that will be held November 30 - December 1, 2018. Fincher detailed upcoming Spotlight Series events. Visit Kentarts.com for ticket information. 5. Reoorts from Council and Staff Council President Boyce and Mayor Ralph presented a special report regarding the Mayor's proposed 20L9-2O budget and budget process to date as follows: Tonight, the Operations Committee recommended the Mayor's proposed 2Ot9-202O budget to Kent City Council for approval. We are proud of this budget and the collaboration among the Mayor, City Council and the community that started in February at our first Council retreat. Since then, there have been many retreats, workshops, hearings and public meetings where we reached out to residents, businesses and the Kent Chamber of Commerce to get feedback, We also attended Chamber board meetings, committee meetings and held three budget roadshows to educate residents and businesses about the fiscal cliff. We set up a budget FAQs page on our website and asked residents to share feedback and to sign up for an email list to be kept informed of the budget process. You may have heard some inaccurate information about our proposed Business & Occupation (B&O) tax increase. That misinformation has created the impression that we do not support businesses in Kent, because we made the hard decision to raise B&O tax rates incrementally over the next 10 years. The Mayor and Council do support local businesses, and we want them to be successful. We did not make the decision to raise B&O lightly. B&O is a poorly constructed tax, yet one of the few options the legislature gives cities to fund operations. Faced with a significant budget shortfall due to factors beyond our control, we had to find a way to remain financially sustainable. Before reallocating revenues, cutting more than $2 million in costs, reducing staff, and generating new revenue through B&O, we explored many cost-cutting measures and revenue-generating options. may have heard. s oppo n Page 2 of 11 cou r some s youewaprove Kent City Council Regular Meeting Minutes November 6,20t8 Kent, Washington Approved November 20, 2OL8 Myth: There wasn't any collaboration between the City and the business community on the budget, and the Mayor and Council President rejected the Chamber's request for conversations about the budget. Fact: The Mayor's first budget roadshow this spring was at the Chamber office. Either the Mayor or our CAO attended every Chamber board meeting and most Government Affairs Committee meetings. We responded to the incoming Chamber president's spreadsheet with miscellaneous budget suggestions and answered her specific questions. The Mayor and representatives from our Economic and Community Development and Finance departments met with individual B&O taxpayers in September and shared information with stakeholders and answered questions. However, we cannot and did not delegate the Mayor's statutory role to draft the budget. That authority is hers and hers alone. Myth: The City is not open to the Chamber's input Fact: We're open to proposals of the magnitude necessary to replace our lost revenue. Many of the suggestions we received have been done, are not legal, or do not address the general fund. It is hard to imagine alternatives to the Mayor's proposed budget that don't raise residents'taxes or cut services to residents, which residents have told us repeatedly that they oppose. Mythr All small businesses pay B&O tax. Fact: The threshold of revenue at which small businesses owe B&O tax to the City is $250,000 per year. If a Kent business does not generate that much in sales annually, they do not pay any B&O tax. Approximately 55 percent of Kent's 4,610 registered businesses owe B&O tax; 45 percent owe nothing, Myth: B&O tax increases on small businesses are large. Fact: This is simply not true. For example, for a retail business with gross receipts of $251,000, the annual B&O tax due is currently $0.46. Under the proposed rate increase for this category, which would go into effect in 2022, the tax due would be $1, an increase of $0.54. The annual B&O tax for a professional service business with gross receipts of $500,000 is currently $380. Under the proposed rate increase for this category, which would go into effect in2022, the tax due would be $500, an increase of $120. Page 3 of 11 Kent City Council Regular Meeting Minutes November 6,20L8 Kent, Washington Approved November 2O, 2OL8 For a business engaging in wholesale with gross receipts of $1,000,000, the annual B&O tax due is currently $1,140. Underthe proposed rate increase forthis category, which would go into effect in 2020, the tax due would be $1,500, an increase of $360. Myth: The purpose of B&O tax is restricted to pay for streets Fact: B&O revenue is general revenue under state law. Most cities use B&O for general fund operations. There are no laws restricting B&O revenue to streets or any other service area. The original B&O revenue amount allocated in 20L2 is still dedicated to streets. That has never changed. Myth: There are no efficiencies in City government. Fact: The City of Kent has a low level of service and staffing for a city its size. Our number of employees per 1,000 residents has declined since ZOLL. We have continued to make cuts, have not added new programs, and we seek grant funding whenever possible. Myth: Businesses are going to leave Kent due to B&O tax increases Fact: This is a subjective assumption. Each business is unique, and businesses make location decisions based on a number of factors of which taxes are only one. Kent's proposed B&O tax rates remain below those of other cities and Kent remains a strategic location for businesses in the greater Puget Sound region. Our Economic and Community Development Department works with businesses looking to locate to Kent every day. Myth: The City waited until the last minute to address the fiscal cliff. Fact: As the Mayor stated in her September 25 letter to Council, we are proud of the steps taken previously to mitigate these impacts. While this loss is certainly significant, the fiscal cliff would have been a much larger challenge had the City not taken proactive steps. These steps included talking to our residents about the fiscal cliff as early as 20L4, making strategic transfers, eliminating negative fund balances, refundíng existing debt to reduce interest costs, and updating our fiscal policies to address fund balance levels. The City utilizes a conservative budgeting approach, and we use realistic revenue forecasting to inform expenditure levels. The City also made the extremely difficult decision to begin levying the full property tax rate allowable under state law Page 4 of 11 Kent City Council Regular Meeting Minutes November 6, 2018 Kent, Washington Approved November 20, 2OL8 beginning in 2018. Additionally, the City has taken a lead role in working with the State as well as other cities negatively affected by the state's decision to eliminate Streamlined Sales Tax mitigation monies beginning in 2019. Since we won't know the outcome of our efforts until after the City's budget must be adopted, we have planned for the worst-case scenario but are hopeful for a successful outcome from this endeavor. The budget provides a sustainable solution and allows the City to continue to move forward. Our budget shortfall is a serious situation that we have worked hard to address creatively. We have crunched the numbers, examined our revenue and expenses, and explored many options and possibilities. The bottom line is that a single solution will not resolve the fiscal cliff, and we've made some difficult decisions that some will disagree with, but they were well thought out and we took all feedback from residents and businesses into consideration. At the same time, we appreciate the Chamber's involvement in and their passion for the business community. We welcome continued dialogue on budget issues and are open to viable solutions. Mayor Ralph Mayor Ralph met with representatives from the Boeing company and was informed that Boeing will be adding 1,400-1,600 new jobs to the Kent Valley. Mayor Ralph advised that the City received an application from a large Kent employer that is looking to increase their current facility by an addition 108,000 square feet. Derek Matheson, Chief Administrative Officer Matheson provided details regarding today's Vision Café, the official launch of the City's updated Vision, Mission, Values and Goals and recognized the following staff that organized the event: Dana Neuts, the team leader, Marty Fisher, Patti Belle, Pam Clark, Mark Ciavarella, Edgar Riebe, Josh Gonzalez, Michael Mage, Kathleen McConnell, Suzanne Shaw, and Katy McKee. The 2019 draft legislative agenda will go before the Operations Committee on November 20 and then onto the full council that same evening. Staff have finished negotiations with the west hill water/sewer districts for franchise ordinances that will be introduced during the November 20 council meeting and will move to the city council consent agenda on December 11, 2018 for adoption. Matheson advised his written report is in today's agenda packet and there is an executive session for Council to discuss collective bargaining, expected to last 20 minutes with no action anticipated. Page 5 of 11 Kent City Council Regular Meeting Minutes November 6, 2018 Kent, Washington Approved November 20, ZOLB Council President Boyce Boyce provided details regarding the items presented during today's Operations Committee. Boyce detailed the councilmember's applications to regional committees and will return to a future meeting to convey the confirmed appointments, Councilmember Higgins Higgins serves on the Regional Transit Committee and advised that during the recent workshop the committee took action to approve the Metro Strategic Plan Update. The committee also heard a presentation on "Maximum Constraint" - impacts to commuters once the viaduct closes in January. Councilmember Troutner Councilmember Troutner advised next Public Safety Committee meeting will be held on December 1l and thatthe Puget Sound Regional Fire Authority Governance Board will meet November 7, 2OLB. Councilmember Fincher Councilmember Fincher advised that the Parks Comprehensive Recreation Program Plan was presented during the recent Parks and Human Services Committee. Fincher advised that the Arts Commission's Kent Creates contest "Fall Colors" is currently underway and contestants have until November 30, 2018 to submit projects, Fincher advised that selected artists are submitting their proposals for the traffic controller boxes. Fincher advised that the Arts Commission is reviewing Spotlight Series events for 2019-2020. Fincher serves on the Mental Illness and Drug Dependency Oversight Committee and provided information regarding the Zero Youth Detention Plan. Fincher serves on the King Conservation District Advisory Committee that is currently reviewing the program of work. 6. Public Hearing A. Public Hearing for Resolution Authorizing the Mayor to Sign the Federal Way Link Extension Project Development Agreement Between the City of Kent and Sound Transit Mayor Ralph noted that the public hearing being held is required by state law and city code. While the hearing is required only for the purposes of the resolution approving the development agreement, Long Range Planner, Hayley Bonsteel's presentation covers the Transit Way Agreement as well, which will be considered during Other Business this evening. There will not be an additional presentation at that time; however, Bonsteel will be available for questions. Page 6 of 11 Kent City Council Regular Meeting Minutes November 6,2OL8 Kent, Washington Approved November 20, 2OL8 Mayor Ralph opened the public hearing. Bonsteel provided an overview of both the Federal Way Link Extension Project Development Agreement, that included : ¡ Project History - Sound Transit . Project History - City of Kent o Stations and Alignments from Angle Lake to Federal Way. Cooperation and Working Together . Project Location and Overview of Elements . Project Schedule . Planning and Design Considerations . Develoment Standards . Project Administration . During Construction . Utility Relocation . Liability, Indemnification . Insurance o Liens . Dispute Resolution . Legalese Bonsteel indicated the project will benefit the public by having a rapid, reliable, accessible, and efficient alternative for travel to and from the corridor and other urban growth and activity centers in the region. The project will expand mobility by improving connections to the regional multimodal transportation system. Bonstell provided details regarding the Kent Des Moines and South 272d street stations, code departures, permitting framework, participation in surplus property process, maintenance of street trees and landscaping, pavement restoration, security measures at restrooms for riders, and future agreements. Bonstell provided a review of the companion Transit Way Agreement, the project schedule and next steps. Mayor Ralph and Council expressed their appreciation of the work of staff and indicated Hayley Bonsteel is a "Rock Star!" Bonsteel indicated she is confident the in the terms of the agreements and a reciates Sound Transit bein a true a r Bonsteel advised that Kent is getting a commensurate deal as Seattle and the east side cities have received from Sound Transit. Bonsteel indicated that some jurisdictions are bringing money to the table that is allowing for additional features to the projects in their jurisdictions. Page 7 of 11 Kent City Council Regular Meeting Minutes November 6, 2018 Kent, Washington Approved November 2O, 2Ot8 Public Input None Councilmember Boyce moved to close the public hearing, seconded by Councilmember Fincher. The motion passed unanimously with a vote of 6-O. Councilmember Higgins moved to adopt Resolution No. L977t approving the Federal Way Extension Project Development Agreement between the City of Kent Sound Transit and authoring the Mayor the sign the agreement, seconded by Councilmember Troutner. The motion passed unanimously with a vote of 6-O. 7. Public Comment Tim Brown, a Kent resident expressed his appreciation of the Mayor providing opportunities for citizens to talk with her during her coffee and conversations throughout the community. Brown indicated he got honest and open answers to questions and encouraged other residents to attend upcoming events. Brown spoke in support of the B&O Tax ordinance. April Sta. Rosa, spoke in opposition of the City's B&O Tax ordinance. Sta. Rosa indicated she will spend some time reviewing the myth and fact information presented during tonight's meeting and will provide comprehensive feedback to the Mayor. Gabe Michaud, a Kent resident, spoke in support of the Green Kent program. Michaud indicated the program is important, parks are important, and he urged the council to continue funding the Green Kent program. Laura Weiden, a Green Kent steward, spoke in support of the Green Kent Program and encouraged the Council to continue funding the program. 8. Consent Calendar Councilmember Boyce moved to approve the Consent Calendar ltems A through M, seconded by Councilmember Kaur. The motion passed unanimously with a 6-O vote. A Minutes of October 16, 2018 Workshop and Council Meeting - Approve Minutes of October 16,20L8 workshop and Council meeting were approved. B Payment of Bills - Approve Bills received through September 15, 2018 and paid on September 15, 2018 after auditing by the Operations Committee on October 16, 2018 were approved. Approval of checks issued for vouchers Page 8 of 11 Kent City Council Regular Meeting Minutes Approved November 2O, 2Ot8 November 6,20L8 Kent, Washington Amount $2,t47,t56.O7 $1,515,521.09 $74,400.92 $0.00 $2,809.71 s3J39*882J9 Amount #L,739,Ll9.66 $5,678,593.27 ç45,O92.49 ($s37.66) $0.00 ü-4622ü-15 Date os/Ls/18 os/LslL8 oelLilß Wire Transfers Regular Checks Payment Plus Void Checks Use Tax Payable Check Numbers 7642 - 7658 727944 - 728270 101075 - 101086 Check Numbers 7659 - 7672 72827L - 72862L 101087 - 101103 oe/Ls/LB Approval of checks issued for vouchers Date O9/3O/LB Wire Transfers09/3O/L8 Regular ChecksO9/30/LB Payment Plus Void Checks O9|3O|LB Use Tax Payable c Approval of checks issued for payroll for September 1 - 15, 2018, and paid on September 20,20L8: Date Check Numbers Amount9/2O/2OL8 Checks 0 Voids and Reissues 9/20/2018 Advices 415689 - 4t6554 $1,799.070.38 $1-799-070-38 Approval of checks issued for payroll for September 16 - 30, 2018, and paid on October 5, 2018: Date Check Numbers AmountLO|5/2O18 Checks $0.00 Voids and ReissuesLO/5/2078 Advices 416555 - 4L7434 5L,724,OO5.79 s1J24Ã9sJ9 2018 Court Commissioner Temporary Limited Term Position Authorize The Mayor was authorized to establish a temporary limited term position of Court Commissiorier that will be effective November 1, 2018, to be funded out of the Municipal Court budget, with an end date of December 31, 2018. Authorize The Mayor was authorized to sign all necessary documents to enter into agreements with Azteca Systems, LLC and Woolpert Consultants Inc., to purchase, install, and configure the Cityworks software in a total amount not to exceed $883,000, subject to final terms and conditions acceptable to the Information Technology Director and the City Attorney. Page 9 of 11 Kent City Council Regular Meeting Minutes November 6, 2018 Kent, Washington E F Approved November 20, 2OL8 Ordinance Amending Business License Threshold Exemption - Adopt Ordinance No, 4287 was adopted, amending various sections of Chapter 5.01 of the Kent City Code to adopt mandatory business licensing provisions required by RCW 35.90.080. Consultant Services Agreement with PROS for a Comprehensive Recreation Program PIan - Authorize The Mayor was authorized to sign a Consultant Services Agreement with PROS, in the amount of $92,160 to develop a Comprehensive Plan for city recreation programming, subject to final terms and conditions acceptable to the Parks Director and City Attorney. Public Works Agreement with Modern Building Systems, Inc for City Shops Facility - Authorize The Mayor was authorized to sign a Public Works Agreement with Modern Building Systems, Inc., in the amount of $300,328.60, for the site preparation, purchase and installation of a new modular building to be located at the City Shops facility, subject to final terms and conditions acceptable to the Parks Director and City Attorney. Lease with Union Pacific Railroad for Uplands Extension Triangle Parcel - Authorize The Mayor was authorized to sign a lease agreement with Union Pacific Railroad, in the amount of $3,000 that will annually increase by three percent, for use of the Uplands extension triangle parcel, subject to final terms and conditions acceptable to the Parks Director and City Attorney. Lake Meridian Bathhouse Remodel Project - Accept as Complete The Mayor was authorized to accept the Lake Meridian Park Bathhouse Remodel project as complete and release $L9,276.91 in retainage to Optimus Construction, pending notification from the State of Washington that they have satisfied all taxes and liens. Bill of Sale - S¡kh Temple - Parking Phase I RECC-2O728L9 - Accept Council accepted the Bill of Sale from Sikh Temple, as detailed in items A - C in the summary. K Bill of Sale - Sunrise Meadows RECC - 2O739O1 - Accept G H I J Council acce the Bill of Sale from Hul uist Develo ment Inc.as detailed in items A - D in the summary below. L. Bill of Sale - 132nd Avenue Short Plat RECC - 2L4L599 - Accept Page 1O of 11 Kent City Council Regular Meeting Minutes November 6,2OLB Kent, Washington M Approved November 20, 2OL8 Council was authorized to accept the Bill of Sale from Pavitarpal Purewal, as detailed in items A and B in the summary below. Excused Absence for Councilmember Thomas - Approve The excused absence for Councilmember Thomas was approved. 9. Other BusinessA. Transit Way Agreement for the Federal Way Link Extension Project Between the City of Kent and Sound Transit - Authorized Councilmember Higgins moved to authorize the Mayor to sign the agreement between the City of Kent and Sound Transit for Grant of Nonexclusive Use of a Light Rail Transit Way as Related to the Federal Way Link Extension Light Rail Transit Project, seconded by Councilmember Fincher. Motion approved 6-O. 1O. Bids A, 2018 Guardrail Repair Project - Award Tim LaPorte, Public Works Director, provided information regarding the 2018 Guardrail Repair project bid. Councilmember Higgins moved to award the 2O18 Guardrail Repairs Project to Dirt and Aggregate Interchatrg€, Inc. in the amount of çL34.78O.OO and authorize the Mayor to sign all necessary documents, subject to final terms and conditions acceptable to the City Attorney and Public Works Director, seconded by Councilmember Troutner. Motion approved 6-O. 11. Executive Session and Action after Executive SessionA. Collective Bargaining, RCW 42.3O.L4O(4)(a) At 6:37 p.f,., the Council convened into Executive Session At 6:55 p.ffi., Executive Session was extended for an additional 1O minutes At 7:O5 p.ffi., Executive Session was extended for an additional 5 minutes At7:10 p,m., the Council reconvened into open session, No action 12. Adjournment Mayor Ralph adjourned the Kimberley A.moto City Clerk November 6,2Ot8 eeting at7:t1 pm. Page 11 of 11