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HomeMy WebLinkAboutCity Council Committees - Operations - 04/05/2011 OPERATIONS COMMITTEE MINUTES April 5, 2011 Committee Members Present: Jamie Perry, Les Thomas (Chair), Debbie Raplee The meeting was called to order by L Thomas at 4:03 p.m. 1. APPROVAL OF MINUTES DATED MARCH 15, 2011 D Raplee moved to approve the Operations Committee minutes dated March 15, 2011. J Perry seconded the motion, which passed 3-0. 2. APPROVAL OF VOUCHERS DATED MARCH 15, 2011 J Perry moved to approve the vouchers dated March 15, 2011. D Raplee seconded the motion, which passed 3-0. 3. RECOMMEND THAT THE MAYOR SIGN THE SECOND AMENDMENT TO THE LEASE AGREEMENT BETWEEN KING COUNTY AND THE CITY OF KENT, AUKEEN DISTRICT COURT BUILDING This Second Amendment defers required completion dates for the City’s obligation to construct an addition and remodel the Aukeen Court Building, while the County and City negotiate a purchase and sale agreement for the sale of the Aukeen District Court building from the County to the City. D Raplee recommended that the Mayor sign the Second Amendment to the Lease Agreement between King County and the City of Kent, Aukeen District Court Building. J Perry seconded the motion, which passed 3-0. 4. RECOMMEND COUNCIL ADOPT THE PROPOSED ORDINANCE AMENDING ORDINANCE NOS. 3932, 3933, AND 3959 TO EXTEND THE WAIVER PROVIDED OF CERTAIN PERMITTING REQUIREMENTS FOR TEMPORARY STRUCTURES CONSTRUCTED FOR FLOOD PROTECTION PURPOSES FROM JULY 1, 2011, TO JULY 1, 2012. Ordinance No. 3932, as amended by Ordinance Nos. 3933 and 3959, provide that property owners and tenants within the City of Kent could install temporary flood protection structures without a permit, if those structures were removed by July 1, 2011. If the structures are not removed by that date, then a permit for those structures would need to be obtained. The amendment extends the deadline for the removal of the structures one additional year, to July 1, 2012. The Ordinance was not included in the packet but will be included with the Minutes. Council was familiar with the Ordinance and okay to pass it without viewing it again. Councilmember, Jamie Perry expressed her ongoing concern with additional extensions and that the structures are an eyesore and wants them removed sooner than later. Tim LaPorte, Public Works director, said a letter from the Corp of Engineers indicating the dam is restored to levels of adequate operation, in addition to authorization from the Flood Control District, will begin the process of removing the barriers. When the city removes the barriers from the levees that will be the signal to private companies to do the same. Ben Wolters, Economic and Community Development Director, further clarified that even with the letter, Operations Committee Minutes April 5, 2011 Page: 2 further extensions may be necessary due to the time needed to remove the barriers. Boeing was given as an example. Tim LaPorte stated the barriers should ideally take two months to remove. King County Flood Control District will be responsible for removing the sand. With that said, the Mayor reiterated there will not be overtime issued. J Perry recommended Council adopt the proposed ordinance amending Ordinance Nos. 3932, 3933, and 3959 to extend the waiver provided of certain permitting requirements for temporary structures constructed for flood protection purposes from July 1, 2011, to July 1, 2012. D Raplee seconded the motion, which passed 3-0. 5. RECOMMEND THAT THE OPERATIONS COMMITTEE AUTHORIZE THE INVESTMENT POLICY ORDINANCE UPDATING DELEGATION OF AUTHORITY AND ELIMINATING DESIGNATED INSTITUTIONS FOR COLLATERAL ADVANCES. The Ordinance was pulled from the agenda. No time was given when or if it would be listed on the agenda again. 6. SUMMARY FINANCIAL REPORT FOR DECEMBER 2010. (INFORMATION ONLY) Bob Nachlinger, Finance Director, provided the 2010 year-end summary. The net result is an increase to fund balance of $122,464. The total ending fund balance is $2,182,697, which represents a 3% contingency reserve (fund balance). Total 2010 General Fund revenues were $73,343,055, which is $4,025,765 or 5.2% under budget. The primary revenue shortfalls were: _ Sales Tax revenues were under budget by $709,428 or 4.2%, largely due to a continued decline in the construction industry. _ Utility Tax revenues were $1,805,347 or 13.3% under budget. Telephone Utility Tax revenues represent the bulk of this amount and were $887,653 or 22.6% under budget. The reduction is due to cell phone providers interpreting data services as internet services, which are not taxable according to Federal law. Gas and Garbage Utility Tax revenue shortfalls make up the balance. _ Deterioration in the building industry and in land development continues to result in decreased permitting fees. License and Permit fees ended the year $125,103 or 8.2% below budget. However, these revenues were up by 13.5% compared to 2009 year end. _ The continued deterioration in the building industry has also resulted in decreased revenues from plan check fees, which were down $414,790 or 26.7% below budget. _ Recreation Fees ended the year behind projections by $337,791 or 22.6% under budget. However, the revenues collected in 2010 are consistent with 2009, which suggests that the budget forecast was higher than achievable. _ Fines and Forfeitures were under budget by $136,352 or 7.9% _ Interest income is down $541,905 or 88.1% due to continuing low interest rates and the available cash to invest. Total 2010 General Fund expenditures were $73,220,591, which is $147,784 or .2% below the budget. Budget cuts in the spring of 2010 were severe, leaving no capacity to absorb unplanned expenditures, such as overtime and retirement payouts. We also received notice from State that we are doing such a good job of policing that we are not eligible for the High Crime Funds anymore. Operations Committee Minutes April 5, 2011 Page: 3 With revenues of $73.3 million and expenditures of $73.2 million, fund balance increased by $122,464, resulting in an ending fund balance of $2,182,697 or 3.0% of expenditures. Due to the reduced expenditure budget for 2011, this translates to a 4.0% contingency reserve (fund balance) at the beginning of 2011. 7. SUMMARY FINANCIAL REPORT FOR FEBRUARY 2011. (INFORMATION ONLY) Bob Nachlinger, Finance Director, summarized the February 2011 finances. The past few months have shown a slight upward trend in tax revenues, including sales and utility taxes. Based on information available through February, ending fund balance is projected to be $2,172,012 or 4.1% of the expenditure budget. Throughout 2011, it will be important to closely monitor all revenue sources, as well as related expenditures. Close monitoring will allow the City to react in a timely manner to any adverse trends that may arise. Revenues While sales tax and utility tax revenues are showing an improvement over past years, overall revenues are estimated to end about $376,705 or 0.6% under budget. Highlights include: _ Sales Tax revenues are expected to exceed projections by $415,239 or 2.5% over budget. _ Utility Tax revenues are estimated to be over budget by $384,086 or 2.6%. _ Deterioration in the building industry and land development continues to result in decreased permitting and plan check fees. Building Permits and Plan Check Fees are currently running $154,906 less than expected through February. We are working with Economic and Community Development to determine if this trend is expected to continue and to strategize solutions. _ Interest income is projected to be down approximately $919,029 or 89.9% due to continuing low interest rates and the available cash to invest. Expenditures Current projections, based on individual like item expenditure trends, end the year at about $970,565 or 1.6% below the budget. A lag in hiring is expected to contribute towards expenditures coming in below budget. Through February, there were on average 18 vacant positions in the General Fund, which may result in savings of an additional $304,274. Fund Balance Ending fund balance is estimated to be $2,172,012, which equates to 4.1% of the expenditure budget. Overall, we anticipate an increase by $600k over budget. We look to lag hiring which will produce additional savings. L Thomas asked if there would be employee layoffs. John Hodgson, Chief Administrative Officer replied that we are saving money by lagging 43 positions and looking at overtime in all departments and adjusting schedules. Another challenge is retirement. Other cost savings in capital will be completing projects as funds are earned and through grants, etc. An example is the playground at Lake Meridian. The Mayor stated that we do not anticipate any layoffs, however, “the state budget will make a major call for us on whether we will have layoffs or not”. J Hodgson said layoffs will be discussed if Streamline Sales Tax (SST) and Annexation are touched. We will know more after the 25th of April when Legislation is done. J Perry voiced a concern with the fund balance and that the 8% goal in revenue isn’t as much as it used to be since the fire department left. J Hodgson agreed it needs to be built to a dollar Operations Committee Minutes April 5, 2011 Page: 4 amount as much as to a percentage and do the same with the Capital fund. This will be further addressed with the Strategic Plan/Vision and creating a sustainable budget. Funds for a street overlay project were discussed and the Mayor wants to keep a $1 million reserve for floods unless we hear something unique from the Corp of Engineers. The meeting was adjourned at 4:53 p.m. by L Thomas. _________________________ Pamela Clark Operations Committee Secretary 1 Amending Ordinance No. 3932, Ordinance No. 3933, and Ordinance No. 3959 Re: Permitting of Temporary Flood Protection Structures ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, amending Ordinance Nos. 3932, 3933, and 3959 to extend the waiver provided by those ordinances of certain permitting requirements for temporary structures constructed for flood protection purposes due to the threat posed by the diminished flood control capabilities of the Howard Hanson Dam from July 1, 2011, to July 1, 2012. RECITALS A. On September 15, 2009, the Kent City Council adopted Ordinance No. 3932 temporarily waiving certain permitting requirements for temporary structures constructed for flood protection purposes due to the threat posed by the diminished flood control capabilities of the Howard Hanson Dam. Ordinance No. 3933 was adopted shortly thereafter to further clarify when the permitting requirements for temporary flood protection structures would be waived under Ordinance No. 3932. Ordinance No. 3959 was adopted June 1, 2010 extending the waiver provisions of the prior ordinances to July 1, 2011. 2 Amending Ordinance No. 3932, Ordinance No. 3933, and Ordinance No. 3959 Re: Permitting of Temporary Flood Protection Structures B. Near the end of 2009, the U.S. Army Corps of Engineers completed temporary repairs at the Howard Hanson Dam, which included constructing a grout curtain along a damaged abutment. This temporary fix has reduced the flood risk posed to property owners and citizens located down-river of the dam. C. The U.S. Army Corps of Engineers has obtained an independent review of its plans for temporary and permanent repairs needed at the Howard Hanson Dam, and the reviewing engineers have concluded that the U.S. Army Corps of Engineers is taking the appropriate steps to temporarily and permanently repair the dam in order to stop water seepage through a damaged abutment. Most recently, the federal government has designated $44 million in emergency funding for further repairs at the Howard Hanson Dam that may include an extended grout curtain or a concrete cutoff wall. The final plans are still in process. D. Given the temporary repairs that have already been constructed, and the additional repairs that will be constructed with the designated funds, the flooding risk has continued to decrease. Once the additional repairs are made to the Howard Hanson Dam with the use of the designated funds, the risk of flood will be no greater than the risk of flood that existed prior to the time the abutment problems were discovered. At the current time, it appears that the next stage of repairs will be completed by the Fall of 2011 and testing will be completed in the late Spring of 2012. E. Ordinance No. 3932, as amended by Ordinance Nos. 3933 and 3959, provided that property owners and tenants within the City of Kent could install temporary flood protection structures without a permit, if those structures were removed by July 1, 2011. If the structures are not 3 Amending Ordinance No. 3932, Ordinance No. 3933, and Ordinance No. 3959 Re: Permitting of Temporary Flood Protection Structures removed by that date, the ordinances provide that a permit for those structures would need to be obtained. F. Because the U.S. Army Corps of Engineers is constructing and testing more permanent repairs to the Howard Hanson Dam and in order to address the needs of the community in light of the continually changing flood threat as construction and testing at the Howard Hanson Dam continues, the City Council has elected to extend the permitting exemption by one additional year, to July 1, 2012. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE Ordinance No. 3932, as amended by Ordinance No. 3933, as amended by Ordinance No. 3959 is amended as follows: SECTION 1. – Recitals Adopted as Findings. In addition to the findings adopted by the Kent City Council in Ordinance Nos. 3932, and 3933, and 3959 the City Council finds the additional recitals listed above to be true and correct in all respects and adopts and incorporates them as its findings for the purposes of this ordinance, Ordinance No. 3933, and Ordinance No. 3932, and Ordinance No. 3959. The City Council further finds that the threat of flooding caused by the structural weaknesses in the Howard Hanson Dam abutment constitutes a real and imminent emergency that poses a threat to the health, safety, and welfare of the persons and property in and near the Green River Valley. Even though the actual occurrence of flooding is subject to weather-related events and is accordingly not capable of being predicted with any accuracy at this time, 4 Amending Ordinance No. 3932, Ordinance No. 3933, and Ordinance No. 3959 Re: Permitting of Temporary Flood Protection Structures and may in fact not occur at all, the threat nevertheless remains real and imminent, and it is appropriate and advisable to take appropriate steps to protect persons and property now when time allows to provide protection in advance of any potential flood. SECTION 2. – Definitions. The following definitions apply to the words and phrases used in this ordinance: A. Temporary Flood Protection Structure. “Temporary Flood Protection Structure” means any sandbag, water-filled sack, earthen berm, concrete block, or similar material, or any combination of these materials, placed or installed within ten feet (10’) of, or as close as is reasonably practicable to, the outside perimeter of any critical facility for the sole purpose of keeping potential Green River floodwaters from invading the critical facility. B. Critical Facility. “Critical Facility” includes the following: 1. Any permanent building primarily used as a business or residence that is regularly staffed or is lived in on a daily basis; 2. Any structure used to store bulk fuel or bulk hazardous or dangerous wastes; 3. Any structure or building owned or operated by a public entity whose preservation is necessary for public safety purposes; and 4. Any building or other structure necessary for the ongoing operation of any public or government franchised sewer, water, stormwater, power, gas, or telecommunications utility. Garages, sheds, or other outbuildings, parking areas, landscaping areas, and other similar areas or structures are specifically excluded from this definition. 5 Amending Ordinance No. 3932, Ordinance No. 3933, and Ordinance No. 3959 Re: Permitting of Temporary Flood Protection Structures SECTION 3. – Scope, Purpose, & Applicability. A. This is an unanticipated emergency that poses an imminent threat to public health, safety, and the environment within the Green River Valley that requires immediate action within a time too short to follow established permit application and approval procedures. B. The purpose of this ordinance is to provide property owners the ability to protect life and property in advance of any flood, should one occur, while making best efforts to control the placement of these structures in a manner that attempts to maintain adequate protection for flood storage, erosion and sedimentation control, and other environmental and regulatory controls. C. Temporary Flood Protection Structures placed or installed to protect critical facilities located within the Green River Valley are exempt from the City’s permitting application and approval process for those structures if the Temporary Flood Protection Structure is removed no later than July 1, 20112. While the permitting procedural requirements for Temporary Flood Protection Structures are waived, these structures must still comply with the substantive requirements of all applicable federal, state, and local regulations, specifically including, without limitation, the State Environmental Policy Act, the Shoreline Master Program, the International Building and Residential Codes, or other International and Uniform Codes, the Kent Zoning Code, and the Kent Design and Construction Standards. D. Temporary Flood Protection Structures must be both maintainable and removable; structures subject to degradation, deterioration, abnormal wear and tear, or damage (for example and without limitation, from deficient design, inappropriate fabrics, ultraviolet light, or excessive 6 Amending Ordinance No. 3932, Ordinance No. 3933, and Ordinance No. 3959 Re: Permitting of Temporary Flood Protection Structures erosion from flood waters or flood debris) are not Temporary Flood Protection Structures for the purposes of this ordinance. E. All Temporary Flood Protection Structures must be removed and all materials used to place or install the structures must be properly and legally disposed of no later than July 1, 20112. Any Temporary Flood Protection Structure that remains on site beyond July 1, 20112, will automatically be deemed a permanent flood protection device, structure, or installation, will automatically be deemed subject to this ordinance and to all applicable regulatory and permitting requirements, and will automatically be deemed in violation of this ordinance and the Kent City Code for failure to obtain necessary permits and approvals, enforceable under chapter 1.04 of the Kent City Code and subject to civil and criminal penalties F. All flood protection structures that do not meet these requirements for Temporary Flood Protection Structures must be properly permitted under city, state, and federal regulatory requirements. However, because this is an emergency and because the threat of flooding is imminent, property owners who wish to construct flood protection structures other than Temporary Flood Protection Structures may commence work immediately, but the property owner must subsequently obtain all required permits for that non-temporary structure no later than July 1, 20112. SECTION 4. – Severability. If any one or more section, subsections, or sentences of this ordinance are 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. 7 Amending Ordinance No. 3932, Ordinance No. 3933, and Ordinance No. 3959 Re: Permitting of Temporary Flood Protection Structures SECTION 5. – 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; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. SECTION 6. – Effective Date. This ordinance shall take effect and be in force thirty (30) days from and after its passage as provided by law SUZETTE COOKE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK 8 Amending Ordinance No. 3932, Ordinance No. 3933, and Ordinance No. 3959 Re: Permitting of Temporary Flood Protection Structures APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY PASSED: day of June, 2011. APPROVED: day of June, 2011. PUBLISHED: day of June, 2011. 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) BRENDA JACOBER, CITY CLERK P:\Civil\Ordinance\FloodProtectionMeasures-ExtendPermitDeadline.doc