HomeMy WebLinkAboutCity Council Committees - Operations Committee - 02/02/2016 (2)
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 4th Ave S, Kent, 98032.
For additional information please contact Jennifer Hays at 253-856-5700.
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 1-800-833-6388.
Operations Committee Agenda
Councilmembers: Bill Boyce – Les Thomas – Dana Ralph, Chair
February 2, 2015
4 p.m.
Item Description Action Speaker Time Page
1. Call to order Chair Boyce 1
2. Roll Call Chair Boyce 1
3. Changes to the Agenda Chair Boyce 1
4. Approval of Check Summary Report
dated 1/01/2016 thru 1/15/2016
YES Chair Boyce 2
5. Approval of Meeting Minutes Dated
January 19, 2016
YES Chair Boyce 2 1
6. Lodging Tax Advisory Committee Board
Member Expansion Ordinance -
Recommend
YES Ben Wolters 10 5
7. 2016 Annexation Sales Tax Credit
Certification - Recommend
YES Barbara Lopez 5 9
8. Director’s Report NO Aaron BeMiller 5 17
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OPERATIONS COMMITTEE MINUTES
January 19, 2016
Committee Members Present: Dana Ralph, Chair; Bill Boyce; and Les Thomas.
The meeting was called to order by Dana Ralph at 4:00 p.m.
1. ROLL CALL.
2. CHANGE TO AGENDA.
There were no changes to the agenda.
3. APPROVAL OF THE CHECK SUMMARY REPORT DATED 12/16/2015 THRU
12/31/2015.
L. Thomas moved to approve the check summary report dated 12/16/15 through
12/31/15. B. Boyce seconded the motion, which passed 3-0.
4. APPROVAL OF MINUTES DATED JANUARY 5, 2016.
B. Boyce moved to approve the Operations Committee minutes dated January 5, 2016.
L. Thomas seconded the motion, which passed 3-0.
5. ASSISTANT CITY ATTORNEY – LIMITED TERM - RECOMMEND.
Deputy City Attorney Pat Fitzpatrick made a request to hire a limited-term, full-time,
benefitted Assistant City Attorney position. The term will expire at the end of 2016.
Over the past few months, the Law Department has benefitted from Ifeona Monu, who
is admitted to practice in Washington State and has been volunteering her time for the
prosecution division. This has allowed the division to have adequate coverage for court
and trials that Assistant City Attorney Michele Walker has not been able to handle.
Over the past year, Ms. Walker has taken on a heavier workload of criminal forfeiture
proceedings. The forfeiture work occupies approximately 30-40 percent of her time,
affects the amount of prosecution work she is able to perform, and puts additional
stress on the remaining prosecutors trying to cover for her. Additionally, the division
will likely suffer the loss of an assistant city attorney for an extended period starting
sometime in April, 2016, due to anticipated FMLA leave.
The budget impact to temporarily hire Ms. Monu will be approximately $45,000 from the
forfeiture fund which currently has a balance of roughly $500,000. The remaining costs
would come from the Law Department’s existing 2016 budget.
L. Thomas moved to recommend council authorize the hiring of a limited-term, full-
time, benefitted Assistant City Attorney position. B. Boyce seconded the motion, which
passed 3-0.
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Operations Committee Minutes
January 19, 2016
Page: 2
6. INTERLOCAL AGREEMENT WITH KING COUNTY DIRECTORS ASSOCIATION FOR
COOPERATIVE PURCHASING - RECOMMEND.
Assistant City Attorney Tammy White made a recommendation for Council and the
Mayor to consider authorizing a new interlocal agreement with King County Directors’
Association (KCDA) to clarify the record, affirm Council’s authorization of the interlocal
agreement, update the agreement’s provisions and staff contact information, and ratify
all acts consistent with the interlocal agreement and prior to its effective date.
The City has contracted with KCDA since 1982 to allow the City to benefit from KCDA’s
cooperative purchasing and procurement efforts. The 1982 interlocal agreement was
signed by the City’s then-administrator, Richard Cushing. Through this interlocal
agreement, the City became a member agency of the KCDA, allowing it to benefit from
all contracts awarded by KCDA. However, it does not appear that this 1982 interlocal
agreement was approved by city Council prior to it having been signed.
If authorized by Council and signed by the Mayor, this interlocal agreement will
continue in force until terminated by either the City or KCDA with 30 days advance
written notice.
There would be no impact to the budget if approved.
B. Boyce moved to recommend Council authorize the Mayor to sign an interlocal
agreement with the King County Directors’ Association to cooperatively purchase and
procure supplies, equipment, and other goods and services, and ratify all acts
consistent with the interlocal agreement and prior to its effective date. L. Thomas
seconded the motion, which passed 3-0.
7. REAPPOINTMENTS OF BARBARA SMITH AND ANDREW HUTCHISON TO THE
LODGING TAX ADVISORY COMMITTEE - RECOMMEND.
Economic and Community Development Director Ben Wolters requested the
reappointments of Barbara Smith and Andrew Hutchison to new three-year terms each
on the Lodging Tax Advisory Committee. The Committee consists of eight members who
are made up of four representatives from businesses required to collect lodging tax and
four representatives who are representing activities funded by lodging tax, and chaired
by a representative from the Operations Committee.
Ms. Smith, the Executive Director of the Kent Downtown Partnership, has been serving
on the Committee and her term expired December 31, 2015. This position is filled by a
representative whose activities are funded by lodging tax.
Mr. Hutchison, the General Manager of the Best Western Plaza by the Green, has been
serving on the Committee and his term also expired December 31, 2015. This position
is required to be filled by a representative whose business collects lodging tax.
L. Thomas moved to recommend Council authorize the re-appointments of Barbara
Smith and Andrew Hutchison to the Lodging Tax Advisory Committee. B. Boyce
seconded the motion, which passed 3-0.
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Operations Committee Minutes
January 19, 2016
Page: 3
8. 2016 INSURANCE PROGRAM.
Interim Human Resources Director Chris Hills provided an update to some changes to
the insurance program. Although the program is in great shape, the market on the
liability side is soft causing a slight increase in premium tax of $500. So far liability
costs have been cut in half from 2011’s $1.3 million to today’s $600,000 with the help
of directors working on limiting negligence issues. The carrier for the excess worker
compensation policy, a purchase above the $500,000 self-insured retention (SIR), in
2015 wanted to increase the minimum premium to $65,000 but it was negotiated to
increase in two $5,000 increments starting this year.
9. HALOGEN eLEARNING
Mr. Hills briefed members on the City’s purchase of the Halogen eLearning Learning
Management System (LMS) that was originally bought in 2014. The current LMS is
outdated and was never capable of functioning jointly with the payroll/personnel system
making a roadblock to keeping accurate training records of employees.
For 2016 Human Resources (HR) has purchased a new LMS from Halogen called
eLearning. This purchase is being made after extensive evaluation of several LMS and
cooperation of departments who are key users of the LMS, specifically Police and Public
Works. This new LMS will roll out to employees over the course of 2016. Training on its
use will be provided by HR and in conjunction with training on Halogen Performance.
The cost of the system and courses will be $36,140 ($18,440 for system and $17,700
for learning content). This cost is well within the budget established for Citywide
training for 2016. For 2017, system cost of budget will revert to the Information
Technology Department where the current system will serve as backup during 2016.
Cost of learning content will continue within HR training budget.
10. QUARTERLY PROCUREMENT REPORT
Chief Administrative Officer Derek Matheson updated committee members on the
adopted May 2015 procurement ordinance that has a central feature that raises the
Mayor’s purchasing authority from $25,000 to $65,000. This feature requires staff to
provide a quarterly report to Council on contracts, including real-estate agreements,
above $25,000 not previously approved by Council.
The current report covers nine contracts of the fourth quarter in 2015.
The meeting was adjourned at 4:29 p.m. by D. Ralph.
J. Hays
Jennifer Hays
Operations Committee Secretary
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ECONOMIC and COMMUNITY DEVELOPMENT
Ben Wolters, Director
PLANNING DIVISION
Charlene Anderson, AICP, Planning Manager
Phone: 253-856-5454
Fax: 253-856-6454
220 Fourth Avenue S.
Kent, WA 98032-5895
Date: February 2, 2016
TO: Kent City Council Operations Committee
FROM: Ben Wolters, Economic and Community Development Director
Subject: Lodging Tax Advisory Committee Board Member Expansion Ordinance -
Recommend
SUMMARY: At the December 8, 2015 Council meeting, Ordinance No. 4176 was
adopted to increase the number of members appointed to the Lodging Tax Advisory
Committee from seven to nine members. In order to alleviate confusion concerning
the terms of the two new additional members, and to remain consistent with state
law, minor changes to the Kent City Code are required. In the attached draft
ordinance you will see the clarification of language
BACKGROUND: The Lodging Tax Fund has seen a steady increase in hotel/motel
tax revenues in the past three years with 17 motel/hotels in Kent.
The Lodging Tax Advisory Committee is pursuing a more aggressive and expansive
strategy to market Kent to visitors and businesses through a new marketing brand
and a targeted social media, radio, and TV campaign.
With the growing work of the Committee, it was deemed useful to include a wider
range of voices and broader participation on the Committee from those who collect
the hotel/motel tax (hotels) and those community representatives that use lodging
tax funding to promote Kent to help guide the marketing and branding strategy for
Kent. Accordingly, the Committee was given an increased membership by the City
Council, through passage of Ordinance No. 4176.
BUDGET IMPACT: None
Enc: Ordinance
cc: Ben Wolters, Economic & Community Development Director
MOTION: Recommend City Council adopt clarifying language pertaining to
term limits in Ordinance No. 4176 amending Chapter 2.54 of the Kent City
Code, entitled “Lodging Tax Advisory Committee,” to increase the number
of committee members from seven to nine.
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ORDINANCE NO.
AN ORDINANCE of the City Council of the
City of Kent, Washington, amending Section
2.54.030 of the Kent City Code, to make
housekeeping changes regarding the appointment
and terms of Lodging Tax Advisory Committee
members.
RECITALS
A. The number of members of the Lodging Tax Advisory
Committee was recently increased from seven members to nine, through
passage of Ordinance No. 4176, on December 8, 2015.
B. In order to alleviate confusion concerning the terms of the
two additional members, and to remain consistent with state law, minor
changes to the Kent City Code are required.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. - Amendment. Section 2.54.030 of the Kent City Code
is hereby amended to read as follows:
1 Amend KCC 2.54.030 -
Re: Terms of Lodging Tax Advisory
Committee Members
6
Sec. 2.54.030 Terms.
A. All members appointed pursuant to KCC 2.54.020 shall serve three-
year terms. The initial appointment shall be staggered with three
appointments serving a one-year term, three appointments serving a two-
year term, and two appointments serving a three-year term. All current
members of the committee as of December 30, 2015, shall continue to
retain their staggered three-year terms, as shall their successor
appointees, pursuant to Ordinance No. 3417. The two additional members
appointed by the city council, as authorized by Ordinance No. 4176, shall
serve three-year terms each. Organizations representing businesses
required to collect tax under Chapter 67.28 RCW and organizations
involved in activities authorized to be funded by revenue received under
said tax as well as local agencies involved in tourism and promotion may
submit recommendations for membership on the committee.
B. Pursuant to RCW 67.28.1817(1), as amended, the city council shall
review the membership of the lodging tax advisory committee at least
once annually, and shall make changes as appropriate.
SECTION 2. – Retroactivity. This ordinance shall be effective and
apply retroactively to all appointments and re-appointments to the lodging
tax advisory committee made by the city council on or after January 7,
2016.
SECTION 3. – Severability. If any one or more section, subsection,
or sentence of this ordinance is 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.
2 Amend KCC 2.54.030 -
Re: Terms of Lodging Tax Advisory
Committee Members
7
SECTION 4. – 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 ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering;
or references to other local, state, or federal laws, codes, rules, or
regulations.
SECTION 5. – Effective Date. This ordinance shall take effect and
be in force 30 days from and after its passage, as provided by law.
SUZETTE COOKE, MAYOR
ATTEST:
RONALD F. MOORE, CITY CLERK
APPROVED AS TO FORM:
TOM BRUBAKER, CITY ATTORNEY
PASSED: day of , 2016.
APPROVED: day of , 2016.
PUBLISHED: day of , 2016.
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)
RONALD F. MOORE, CITY CLERK
p:\civil\ordinance\lodging tax 2.54.docx
3 Amend KCC 2.54.030 -
Re: Terms of Lodging Tax Advisory
Committee Members
8
FINANCE
Aaron BeMiller, Director
Phone: 253-856-5260
Fax: 253-856-6255
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: February 2, 2016
TO: Kent City Council Operations Committee
FROM: Barbara Lopez, Deputy Finance Director
SUBJECT: Budget Certification for Annexation Sales Tax Credit-Resolution
MOTION: Recommend Council approve the resolution certifying the
Panther Lake annexation sales tax credit of $4,764,290 for the period July
1, 2016 through June 30, 2017.
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
$4,764,290 for July 1, 2016 through June 30, 2017.
This certification period is the seventh year the City will receive the annexation
sales tax credit, which will expire June 30, 2020.
BUDGET IMPACT: Estimated costs for the Panther Lake annexation area for the
State’s fiscal year 2016 is anticipated to be $12,792,765 in expenditures to provide
City services to those residents, while we anticipate revenues of $8,028,475 from
property taxes, sales taxes and other sources. The net of the revenues and costs
produces a deficit of $4,764,290 which is the amount being certified as the amount
of annexation sales tax credit we are requesting from the State.
EXHIBITS: Resolution
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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 2016 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.
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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. With this Resolution, the City authorizes the imposition of
similar annexation sales and use taxes for the 2016 fiscal year.
J. 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 2016 fiscal year will be at least
$12,792,765, and that this cost exceeds the projected general revenue
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3 Tax Credit Threshold
Panther Lake Annexation
that the City would otherwise receive from the annexation during the
2016fiscal year, which is estimated to be $8,028,475.
K. 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 2016 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.
L. 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
2016 fiscal year is $4,764,290.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS:
RESOLUTION
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
2016 fiscal year is $4,764,290. 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 2016 fiscal year
to the appropriate agencies within the State of Washington.
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4 Tax Credit Threshold
Panther Lake Annexation
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. 1904 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.
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 2016 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 _________________, 2016.
CONCURRED in by the Mayor of the city of Kent this ______ day of
__________________, 2016.
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5 Tax Credit Threshold
Panther Lake Annexation
SUZETTE COOKE, MAYOR
ATTEST:
RONALD F. MOORE, CITY CLERK
APPROVED AS TO FORM:
TOM BRUBAKER, CITY ATTORNEY
I hereby certify that this is a true and correct copy of Resolution No.
______ passed by the City Council of the city of Kent, Washington, the
________ day of _________________, 2016.
RONALD F. MOORE, CITY CLERK
P:\Civil\Resolution\Annexation Sales Tax Threshold2016 - track changes.docx
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Estimated
Description Revenues
Property Taxes 3,191,940
Sales and Use Tax 195,000
Sales and Use Tax - Criminal Justice 690,000
Utility Taxes 2,689,485
Other Taxes 45,000
Cable Franchise Fee 297,840
Liquor - Excise Tax & Board Profits 312,960
Fuel Tax 570,000
Other State Shared Revenues 36,250
8,028,475
Maximum Sales Tax Credit 4,764,290
12,792,765
Estimated
Department Expenditures
City Council 75,655
Mayor's Office & City Clerk 520,265
Municipal Court 643,605
Employee Services 246,310
Law 365,795
Finance 560,660
Information Technology 348,725
Police 5,733,060
Fire Services 266,985
Economic & Community Development 647,515
Public Works 1,454,070
Parks, Recreation & Community Services 1,930,120
12,792,765
Revenues Over / (Under) Expenditures -
CITY OF KENT
PANTHER LAKE ANNEXATION CERTIFICATE
JULY 1, 2016 THROUGH JUNE 30, 2017
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1616
Kent Council Operations Committee Consolidating Budget Adjustment
FINANCE
Aaron BeMiller, Director
Phone: 253-856-5260
Fax: 253-856-6255
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: February 2, 2016
TO: Kent City Council Operations Committee
FROM: Aaron BeMiller, Finance Director
SUBJECT: Director’s Report
MOTION: No motion: Non-action item
SUMMARY: The Finance Director will report out financial or operational item(s).
BUDGET IMPACT:
BACKGROUND:
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