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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 12/05/2017Operations Committee Minutes Approved January 16, 2018 Page 1 of 7 Date: December 5, 2017 Time: 4:05 p.m. Place: Chambers East Attending: Bill Boyce, Les Thomas, and Dana Ralph, Chair Agenda: 1. Call to Order. 2. Roll Call. 3. Changes to the Agenda. There were no changes to the agenda. 4. Approval of Check Summary Reports dated 11/1/17 thru 11/15/17. L. Thomas moved to approve the check summary report dated 11/1/17 thru 11/15/17. B. Boyce seconded the motion, which passed 3-0. 5. Approval of Meeting Minutes dated November 21, 2017. B. Boyce moved to approve the Operations Committee meeting minutes dated November 21, 2017. L. Thomas seconded the motion, which passed 3-0. 6. Court Security - New FTE position and Transfer of Current Position - Recommend. Police Chief Ken Thomas made a request to create an additional full-time court security officer position for 2018 and to transfer the current part-time (.53 FTE) security officer position out of the Court budget into the Police Department budget beginning January 2018; this position was already slated to be transferred to the Police Department January 2019. The current part-time security officer is scheduled to retire at the end of 2018. Staff will reevaluate that position in light of the new full-time position as part of the 2019-20 budget preparation process. The requested full-time position is estimated to cost $107,000 that is budgeted by the Police Department. The Court’s 2018 budget contains $40,000 for patrol overtime and $18,000 to hire and train a new security officer which will be reallocated to the Police Department for the new full time position, leaving $49,000 to be covered by the general fund. L. Thomas moved to recommend Council authorize the Mayor to approve a new FTE court security officer position in the Police Department budget, and transfer the current part time court security position from the Municipal Court Operations Committee Minutes Approved January 16, 2018 Page 2 of 7 budget to the Police Department budget. B. Boyce seconded the motion, which passed 3-0. 7. Comprehensive Plan/Capital Facilities Element Amendment and Update to Kent City Code Chapter 12.13 School Impact Fees - Recommend. Economic and Community Development Long Range Planning Manager Charlene Anderson made a request to move forward the City’s annual update to the comprehensive plan to incorporate the capital facilities plans for Kent, Auburn, Highline, and Federal Way (Federal Way) School Districts and to adopt the school impact fees for Kent, Auburn, and Highline School Districts. Mayor Cooke and staff recommended retaining the Federal Way School District’s school impact fees. The decision to retain Federal Way’s impact fees was in result to the significant percentage increase to the multi-family fee to just over 1,500 percent in the past two years. Staff will continue to work with Federal Way and also explore a possible amendment to Chapter 12.13 Kent City Code setting a maximum school impact fee obligation. B. Boyce moved to recommend City Council adopt two ordinances updating the Capital Facilities Element of the Kent Comprehensive Plan and Chapter 12.13 Kent City Code to incorporate the 2017/18 - 2022/23 Capital Facilities Plans of the Kent, Auburn, Highline, and Federal Way School Districts with updated school impact fees, retain the current fees for the Federal Way School District, and direct staff to continue to work with the Federal Way School District to determine appropriate impact fees for that District. Passage of these ordinances should only occur once the City Council passes a budget. L. Thomas seconded the motion, which passed 3-0. 8. Extension of Interlocal Agreements for Court and Jail Services with Maple Valley - Recommend. Deputy City Attorney Pat Fitzpatrick asked members to move forward first amendments of two interlocal agreements between the City of Maple Valley and the City for municipal court and jail facility services through January 1, 2020; both agreements allow for additional three year extensions. Maple Valley agreed to pay the City a minimum of $175,000 annually for municipal court services; an additional $4,000 will be charged if more than 333 cases are filed during any given month. The agreement also allows the City to apply charges if a Maple Valley judge or judge pro tem is not available to appear in court. The agreement also requires an annual minimum fee of $80,300 for guaranteed space for two inmates at the jail. Additional fees for booking, additional space and electronic home monitoring, as required, will be paid by Maple Valley. Operations Committee Minutes Approved January 16, 2018 Page 3 of 7 Fees are subject to an annual inflator, the terms of which have been clarified by this First Amendment. L. Thomas moved to recommend Council Authorize the Mayor to sign First Amendments extending the terms of Interlocal Agreements between Maple Valley and Kent for jail and municipal court services, subject to final terms and conditions acceptable to the City Attorney. B. Boyce seconded the motion, which passed 3-0. 9. Storm and Surface Water Ordinance – Add CPI - Recommend. Public Works Acting Accounting Manager Krystin Lykken asked members to adopt the ordinance to amend City code to add a cost-of-living increase to the storm and surface water utility. The increase will be capped at 2.4 percent per a year until January 2, 2023, will continue after that point without any cap or action required, and is intended to accommodate ongoing increases to the operational costs of the system in order to maintain and operate the City’s storm and surface water utility at the existing levels of service. B. Boyce moved to recommend Council adopt an ordinance that amends Kent City Code to add a yearly cost of living increase to the Storm and Surface Water Utility Rates. L. Thomas seconded the motion, which passed 3-0. 10. Ordinance for YMCA Project within Morrill Meadows/East Hill Park – Authorize Execution of Conveyance and Project Agreements – Recommend. Parks and Community Services Director Julie Parascondola, City Attorney Tom Brubaker, and YMCA of greater Seattle Vice President Nathan Philips asked members to move forward an ordinance authorizing execution of the conveyance and project agreements for the YMCA project within Morrill Meadows and East Hill parks. Ms. Parascondola, Mr. Brubaker, and Mr. Phillips presented details of the agreement and explained how the various documents relate to one another, what they each provide, and how they respectively bind and obligate both the YMCA and the City through design, construction, and the ultimate operation and maintenance of the completed project over the long-term. The proposed ordinance would authorize the Mayor, or designee, to sign the various documents, subject to final terms and conditions acceptable to the City Attorney; to convey a portion of park property to the YMCA to construct its community center; obligate the City to total principal lease payments in a maximum amount not to exceed $8.5 million over the term of the lease; and to take all actions necessary to carry out the project under the limits and conditions provided for by the ordinance. Operations Committee Minutes Approved January 16, 2018 Page 4 of 7 L. Thomas moved to recommend Council adopt an ordinance that approves conveying park land to the YMCA for its construction of a community center; authorizes the lease and lease-back of a portion of park land for the construction of project improvements; authorizes the execution of all necessary conveyance, lease, development, and operation and maintenance agreements; authorizes and declares the City’s principal lease payments, not to exceed $8.5 million over the term of the lease, as a general obligation debt of the City; and authorizes all other acts related thereto and provided for by the ordinance. B. Boyce seconded the motion, which passed 3-0. 11. Consolidating Budget Adjustment Ordinance for Adjustments between September 1, 2017 and November 30, 2017 - Recommend. Deputy Finance Director Barbara Lopez made a request to move forward the fourth quarter technical gross budget adjustment ordinance reflecting an overall budget increase of $13,027,264. Of that amount, $3,769,470 was previously approved by Council for the following items: $1,500,000 PSRC Grant for the EVH S 196th St. to S 180th St. Project; $750,000 Grant for Hogan Park at Railroad Field Conversion Project; $500,000 Lake Meridian Dock Grant; $485,000 YMCA Grant; $191,815 KC Sub-regional Opportunities Grant for Upper Mill Creek Dam; $125,000 Drug Free Communities Grant; $106,010 Commute Trip Reduction Grant; $64,500 Target Zero Grant, and; $47,145 STOP Act Grant. Adjustments totaling $9,257,794 not previously approved by Council include: $2,700,000 transfer of General Fund reserves in excess of 18 percent to the Capital Resources Fund, which will help fund the YMCA and Quiet Zone projects in 2018; $2,100,000 to cover increased medical claims in the Insurance Fund; $1,370,760 for additional B&O revenues collected. $685,380 transfers the monies out of the General Fund and $685,380 increases the expense budget for the projects using the additional funds, which are S. 212th Way Overlay and 80th Ave. Concrete; $534,800 for ShoWare POS system and rebranding ; $500,000 to transfer 50 percent of the Par 3 sale proceeds received to Golf capital projects. $250,000 represents the transfer out of the Golf Operating Fund and $250,000 to set aside the funds in a Golf project; $550,000 to provide additional funding for Naden property acquisitions. $275,000 to transfer the monies out of the General Fund and $275,000 to increase the property acquisition budget; $454,940 Parks Fee-in-lieu funds received for various parks projects; $310,000 to correct PFD bond refunding debt service budget; $263,410 KC Levy Distribution for various parks projects; $200,000 for increased liability coverage in the Insurance Fund; $130,890 for Cell Tower Revenues used for Park Capital Projects; $62,980 for various other park fees and revenues used for capital projects; $61,664 for minimum wage increases for Parks temporary staff, and; $18,350 in other miscellaneous corrections, reallocations, and small grants. Operations Committee Minutes Approved January 16, 2018 Page 5 of 7 B. Boyce moved to recommend Council approve the consolidating budget adjustment ordinance for adjustments made between October 1, 2017 and November 30, 2017, reflecting an overall budget increase of $13,027,264. L. Thomas seconded the motion, which passed 3-0. 12. Property Tax Levy Ordinance - Recommend. Ms. Lopez made a recommendation to move forward the proposed property tax levy ordinance; the 2018 levy totals over $30 million. This ordinance levies a property tax increase of 28.8 percent, which includes an increase of one percent on property, new construction, adjustments over the prior year, and use of $6.409 million of banked capacity. The $4.164 million of banked capacity not needed for operations will be transferred to the Capital Resources Fund. The tax is for the City’s 2018 budget, to be applied to the general fund for the purpose of paying the general expenses of municipal government. L. Thomas moved to recommend Council adopt the property tax levy ordinance for the 2018 budget. B. Boyce seconded the motion, which passed 3-0. 13. Amend the Capital Facilities Element of the Comprehensive Plan for the 2018-2023 Capital Improvement Plan – Recommend. Ms. Lopez made a request to amend the Capital Facilities element of the Comprehensive Plan per procedures established in Kent City Code 12.02. The 2018-2023 Capital Improvement Plan identifies a six-year plan for capital improvement projects, including costs and revenue sources. B. Boyce moved to recommend Council approve the ordinance amending the Capital Facilities Element of the Kent Comprehensive Plan to reflect the 2018- 2023 Capital Improvement Plan. L. Thomas seconded the motion, which passed 3-0. 14. 2018 Mid-Biennium Budget Adjustment Ordinance – Recommend. Ms. Lopez asked to approve the mid-biennium budget adjustment ordinance per RCW 35A.34.130, the budget adjustment totals $49,343,610. There were two changes that were made to the Mayor’s proposal, they are: $2.4 million will be used to fund the Quiet Zone; $6.409 million of banked property tax capacity will be applied to the general fund for the purpose of paying the general expenses of municipal government. The $4.164 million of banked capacity not needed for operations will be transferred to the Capital Resources Fund. L. Thomas moved to recommend Council approve the 2018 Mid-Biennium Budget Adjustment Ordinance. B. Boyce seconded the motion, which passed 3-0. Operations Committee Minutes Approved January 16, 2018 Page 6 of 7 15. 2018 State Legislative Agenda – Information Only. Communications Consultant Dana Neuts advised members there were non- substantive corrections made to the 2018 state legislative agenda. Updates to page one are technical changes; the change on page three is a correction. 16. October Financial Report – Information Only. Finance Director Aaron BeMiller reported an overall positive budget variance of $2.3 million. The 2017 budget reflects an expected use of $2.4 million of fund balance, including $2 million for Parks capital projects. The budgeted use of fund balance is offset by the positive budget variance of $2.3 million, reducing the estimated actual use of fund balance to $1.2 million. General Fund Reserves are estimated to end the year at $17.9 million, or 18 percent of estimated 2017 expenditures. The following highlights were reported: Revenues are estimated to end the year at approximately $4.3 million or 4.6 percent higher than budgeted. Expenditures through October show all departments are remaining fairly close to budget with an overall favorable budget variance of $-2 million or -2.1 percent. 17. Director’s Report – Information Only. Mr. BeMiller reported out on two items, they are:  Senior Financial Analyst Joe Bartlemay provided an update to the September 30, 2017 quarterly investment report. During the November investment advisory board meeting it was announced the City would continue to work with investment consultant PFM to manage the portfolio; TVI has been informed of the decision. Going forward PFM will consolidate the portfolio with an increase of $80 million, this amount includes the $25 million already managed by PFM, the $10 million TVI was managing, and adds approximately $20 million the City was managing.  Council approved the 2009 revenue bonds crossover refunding. Upcoming tax changes will eliminate the ability of advance refunding. The market is reactive to every news report that comes out causing fluctuation in the amount of savings. 18. Adjournment. The meeting was adjourned at 5:30 p.m. by D. Ralph. Operations Committee Minutes Approved January 16, 2018 Page 7 of 7 J. Hays Jennifer Hays Operations Committee Secretary