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HomeMy WebLinkAbout07-13-2009 - Supplemental MaterialsCOUNCIL MEETING DATE: JULY 13, 2009 MEDINA CITY COUNCIL MEETING AGENDA BILL SUBJEcT/TITLE: AUTHORIZING THE CITY MANAGER TO SIGN THE SMP GRANT AGREEMENT CATEGORY: ❑ Consent ❑ Ordinance ❑ Public Hearing ® City Council Business ❑ Resolution ❑ Other - Discussion STAFF REPORT BY: ROBERT J. GRUMBACH BACKGROUND/SUMMARY: Staff received this morning (Monday, July 13) the SMA Grant Agreement from the Washington State Department of Ecology to provide funds for the city's shoreline master program update efforts. This agenda bill compliments Item 013-5 on the agenda bill. Approval of the agreement is required to be eligible to receive state funds. It is requested at tonight's meeting with an eye towards conducting the outdoor inventory during the warmer summer weather and to have time for completing the SMP update in the two years the state legislature has budgeted the funds. The effective date of the agreement is from July 1, 2009 to June 30, 2011. The maximum grant amount is $125,000 over three fiscal years. $100,000 of the grant is currently funded by the state legislature for the first two fiscal years. The grant is awarded on a reimbursable basis. The City initially pays project costs as they incur. Invoicing to Ecology is done on a monthly to quarterly basis. The terms of the grant are for Medina to complete an update of the Medina Shoreline Management Master Program that is developed and adopted in a manner consistent with the requirements of the Shoreline Management Act and the Shoreline Master Program Guidelines. The funds will be used to hire consultants to assist the city in updating its shoreline master program. A budget amendment for expenditure of the funds from the agreement will be provided at the next regular council meeting. BUDGET/FISCAL IMPACT: Revenue of $27,000 in 2009;$55,000 in 2010; $18,000 in 2011 STAFF RECOMMENDATION: Recommend to approve CITY MANAGER REVIEW: PROPOSED COUNCIL MOTION: MOVE TO APPROVE AUTHORIZING THE CITY MANAGER TO SIGN THE SMA GRANT AGREEMENT BETWEEN THE CITY OF MEDINA AND THE WASHINGTON STATE DEPARTMENT OF ECOLOGY 7/13/2009 a City of Medina Budget Status July 13, 2009 Presented by: Mike Bailey, City of Redmond Finance Director Tracey Dunlap, City of Kirkland Director of Finance & Administration Agenda • Introductions • 2009 Observations • 2010 Considerations • Some Issues for Future Review • Finance Director Input 2 1 7/13/2009 Introductions • Mike Bailey, CPA, City of Redmond Finance Director PreviouslyAdministrator of Finance and Information Services for the City of Renton and Director of Finance for the City of Lynnwood Served as president of the Washington Finance Officers Association and is theVice Chair of the GFOA Budget Committee Conducts workshops and authored articles on local government finance, including Effective Budgeting in Washington State Cities published by the AWC. Tracey Dunlap, PE., City of Kirkland Director of Finance & Administration • Previously principal and shareholder in a regional financial and management consulting firm, helping jurisdictions develop and implement cost recovery and fee strategies, set utility rates, and improve organizational efficiency and effectiveness. • Also worked in the private sector for a large defense contractor and a major financial institution. • Written articles and presented on a wide array of topics for organizations including WFOA,APWA,APA,WABO, and AWC. • Mike and Tracey are also contributors Finance Advisor column published monthly on MRSC's website 2009 Observations • The adopted budget was balanced assuming the use of $650,000 in General Fund balance • Projection for year-end estimates using $1.03 million in General Fund balance due to: o $250,000 shortfall in sales tax revenue o Net shortfall of $174,000 due to a $366,000 reduction in licenses in permits, offset in part by $192,000 reduction in development services expenditures • The General Fund balance is sufficient to absorb this use, but continued use could pose future challenges 2 7/13/2009 2009 Observations • Suggestions for additional analysis: o Are there additional reduction that can be made in development services to offset more of the revenue shortfall? • Does the use of reserves indicate an on- going imbalance in operating revenues and expenditures (an "operating gap")? o What is a reasonable minimum fund balance for the General Fund? 2010 Considerations • If there is an "Operating Gap", consider steps to close the gap, which may include: • Expenditure reductions • Revenue increases, such as: • Optional Property Tax Increase/Banked Capacity • Imposing a utility tax and/or franchise fee • As part of the budget discussion, consider evaluating/adopting reserve policies 3 7/13/2009 Council Questions and Discussion 7/13/2009 Some Issues for Future Review • Further review/adoption of fiscal policies • Review how interest is allocated and used to ensure required allocations are made and operating budget is not vulnerable to interest rate fluctuations Finance Director Input • Critical Skills o Experience in government accounting (rules are not always the most efficient or practical) • "Nuts and Bolts" experience (running payroll, preparing journal entries) o Analytical abilities o Strong communication skills (internal and external) • Looking at potential candidates in our organizations, may need to adjust salary expectations in CITY OF MEDINA FUND BALANCE ACTIVITY JUNE, 2009 Beginning Ending Ending Fund Fund Fund Balance Balance Balance Fund 6/1/2009 Receipts Disbursements Transfers 6/30/2009 6/30/2008 General $3,311,730.25 $123,136.99 $343,686.37 -$305,000.00 $2,786,180.87 $3,068,335.53 Equip. Replace. 5,747.81 0 0 5,747.81 31,993.12 Street -40,342.06 78,193.44 30,186.98 140,000.00 147,664.40 279,363.41 Reserve 2,276,380.33 0 0 2,276,380.33 2,276,380.33 Tree Fund 16,415.14 0 0 16,415.14 16,182.08 Capital Projects 1,177,533.21 18234.82 51,071.73 165,000.00 1,309,696.30 1,439,460.53 Non -Rev Trust 184,362.04 1,558.50 72 185,848.54 155,338.95 Total $6.931.826.72 $221,123.75 $425.017.08 0.00 $6.727.933.39 $7.267.053.95 Total Cash & Investments June 30, 2009 Checking 153,239.51 Invest Pool 6,574,693.88 $6.727.933.39 City of Medina Annual Budget Status Prior Year Comparison as of 6/30/2009 Percent of Year Complete 50.00% 2008 2008 2008 YTD % of 2009 2009 YTD % of Projected Budget Actual Actual Total Budget Actual Total Year End General Fund Beginning Fund Balance Revenues Property Tax Sales Tax Criminal Justice Funding Licenses & Permits Intergovernmental Charges for Services Fines & Forfeitures Miscellaneous Revenue Pass Thru Non -Revenues 2,839,677 2,839,677 2,839,677 3,011,719 3,163,000 3,163,000 2,191,253 2,204,458 1,148,091 52.4% 2,247,183 1,155,287 51.4% 2,290,380 1,072,365 1,599,044 1,005,413 93.8% 1,300,000 495,303 38.1% 1,056,295 55,000 70,187 35,055 63.7% 74,653 29,501 39.5% 74,653 901,500 682,583 339,241 37.6% 701,500 160,993 22.9% 335,500 424,741 405,529 244,888 57.7% 314,433 39,235 12.5% 314,433 22,600 12,625 6,736 29.8% 12,100 4,738 39.2% 12,100 120,000 115,334 55,278 46.1 % 130,000 54,759 42.1 % 131,422 249,200 207,420 122,114 49.0% 277,300 35,693 12.9% 142,300 225,000 259,269 171,124 76.1% 180,000 80,625 44.8% 180,000 Total Revenues 5,261,659 5,556,449 3,127,940 59.4% 5,237,169 2,056,135 39.3% 4,537,083 Expenditures General Government 1,200,002 1,038,671 532,070 44.3% 1,158,152 572,525 49.4% 1,202,315 Gen Gov Capital Outlay 25,000 0 0 0.0% 25,000 0 0.0% 25,000 Police, Court, Jail & Emerg Prep 2,003,667 1,766,630 793,192 39.6% 2,056,005 783,693 38.1% 1,884,874 Police Capital Outlay 73,925 29,881 29,575 40.0% 44,713 48,794 109.1% 58,334 Development Services 833,195 735,953 395,767 47.5% 818,177 235,975 28.8% 626,056 Parks & Public Works 404,996 327,610 139,084 34.3% 387,817 153,248 39.5% 376,714 Parks Capital Outlay 51,500 3,046 912 1.8% 118,000 65 0.1% 118,000 Fire Protection & EMS 617,360 631,334 308,680 50.0% 667,309 333,655 50.0% 667,309 Operating Transfers Out 700,000 700,000 700,000 100.0% 610,000 305,000 50.0% 610,000 Total Expenditures 5,909,645 5,233,126 2,899,281 49.1% Ending Fund Balance Equipment Replacement Fund Beginning Fund Balance Total Revenues Total Expenditures Operating Transfer In Ending Fund Balance Street Fund Beginning Fund Balance Total Revenues Total Expenditures Operating Transfer In Ending Fund Balance Reserve Fund Beginning Fund Balance Total Revenues Total Expenditures Operating Transfer In Ending Fund Balance Tree Fund Beginning Fund Balance Total Revenues Total Expenditures Operating Transfer In Ending Fund Balance Capital Projects Fund Beginning Fund Balance Total Revenues Total Expenditures Operating Transfer In Ending Fund Balance 5,885,173 2,432,954 41.3% 5,568,602 2,191,691 3,163,000 3,068,336 2,363,715 2,786,181 2,131,481 71,680 71,680 71,681 7,207 5,748 5,748 12,285 12,285 0 100.0% 0 0 0 79,480 78,217 39,687 98.4% 0 0 0 0 0 0 4,485 5,748 31,994 7,207 5,748 5,748 230,539 230,539 230,539 93,105 79,638 79,638 149,000 67,544 32,433 45.3% 141,000 103,299 73.3% 141,000 511,036 418,444 183,608 81.9% 498,995 175,273 35.1% 487,215 200,000 200,000 200,000 280,000 140,000 50.0% 280,000 68,503 79,639 279,364 15,110 147,664 13,423 1,776,380 1,776,380 1,776,380 2,276,380 2,276,380 2,276,380 0 0 0 0 0 0 500,000 500,000 500,000 100.0% 0 0 0 2,276,380 2,276,380 2,276,380 2,276,380 2,276,380 2,276,380 83,322 83,322 83,322 16,180 16,932 16,932 35,000 39,678 38,928 113.4% 15,000 100 0.7% 15,000 114,000 106,068 106,068 93.0% 0 617 0.0% 617 4,322 16,932 16,182 31,180 16,415 31,315 1,327,938 1,327,937 1,327,937 1,409,578 1,483,060 1,483,060 825,000 414,737 222,839 50.3% 529,163 142,569 26.9% 379,163 1,908,000 259,615 111,317 13.6% 2,184,116 480,932 22.0% 1,036,000 330,000 165,000 50.0% 330,000 244,938 1,483,059 1,439,460 84,625 1,309,697 1,156,223 PUBLIC COMMENT -CITY COUNCIL MEETINGS Public comments are encouraged and appreciated. The information and advice received from citizens helps the City Council make the best possible decisions. Council meetings are business meetings where City Council may hear from residents and take action on official City business. in order to accomplish all business on the agenda and be respectful of everyone's time, council members will not be able to engage in dialogue with individual members of the audience. Citizens may address the City Council regarding any issue on the council agenda and any non -agenda items related to city business. Those who have service requests or complaints are encouraged to first bring such matters to the city manager for prompt attention and resolution. Please complete the following information and submit completed form to City Clerk prior to the meeting. PLEASE PRINT LEGIBLY Name: 1% Address: P % $)� A.-C Nr Phone: Pursuant to RCW 42.56, this document is considered a public record. Disclosure may be required upon request. Er I WISH TO SPEAK to the City Council on the following agenda item and/or issue: 1 Pam...-. IN LIEU OF SPEAKING 1 request the City Clerk to include my written comments into the public record. Signature Required: �� � Date: 7 �13 ICE When recognized by the presiding officer, come forward to the podium, state your name and address for the record, and identify the topic you will be addressing. To ensure equal opportunity for the public to comment, individual comments shall be limited to three minutes per person, per meeting. When notified that the allotted time has expired, please promptly conclude your remarks. The presiding officer reserves the right to change the order of speakers so that testimony is heard in the most logical groupings. of M�p�ti 9 CITY OF MEDINA Date: July 13, 2009 To: Medina City Council Members From Council Personnel Committee Subject: City Attorney Recommendation During the 2008 Council Retreat a consensus was reached by the City Council regarding examination of the contract for the City Attorney. The Council asked the interim City Manager to review the contract at that time. Time and priority constraints prevented the review until after a permanent City Manager was in place in November of 2008. During the subsequent 2009 Council Retreat, the new City Manager asked the Council if examination of the contract was still their preference. Consensus determined that it was. In April, 2009 a Request for Proposals for City Attorney was published. The City received a total of eight proposals. The City Manager formed a selection team that included: • Donna Hanson, City Manager • Robert Grumbach, Director of Development Services • Rachel Baker, City Clerk The selection team chose three firms as the top candidates through a process of proposal review and interviews. • Kenyon Disend (to be represented by Steve Victor) • Ogden Murphy (to be represented by Wayne Tanaka) • Dionne & Rorick (to be represented by Jeffery Ganson and Kathleen Haggard) The City Manager then presented the top three candidates to the Council Personnel Committee. The Committee conducted an interview with the intent that if, upon interview, the committee did not agree with the staff's choice, the other two firms would be interviewed as alternatives. Further interviews were deemed not necessary as no objections were raised in regard to the choice and the decision was unanimous. The new City Attorney contract was presented to the City Council for approval on June 8, 2009. However, a majority of the council did not agree with this procedure and requested that the other two firms be interviewed by the Council Personnel Committee. All eight of the written proposals were then provided to the personnel committee members. Additional interviews were scheduled and conducted on Wednesday June 17th, 2009 with the absence of one committee member. Mayor Mark Nelson and Councilmember Robert Rudolph were present and Councilmember Shawn Whitney was unavailable on the scheduled day. After reviewing all of the written proposals, interviewing the top three applicants, consulting with staff, checking on references, and conferring with the MSRC on the procedures and evaluation criteria, the Committee is unanimous in its endorsement of the City Manager's recommendation of Steve Victor of Kenyon Disend for the City's next City Attorney. The reasons are as follows: Steve Victor has been a member of the Washington State Bar for 18 years, three as Assistant Attorney General for the State of Washington and nine as Senior Assistant City Attorney for the City of Tacoma. His focus is on Municipal Law. He was very personable, yet professional, in his interview. He answered questions very succinctly and yet gave thorough explanations. He has experience in Public Records Requests involving cases more complex than any Medina has ever witnessed. He also served as lead counsel in several significant land use planning issues in Tacoma. Kenyon Disend law firm specializes in municipal law, and is currently the City Attorney for the Town of Hunt's Point and a former Prosecuting Attorney for the City of Clyde Hill. Mayors of both municipalities gave very positive feedback on their experience with the firm. Fred McConkey even stated that "Kenyon Disend would be the last firm you'll ever need." Bruce Disend would be the primary backup to Steve. Bruce currently serves as City Attorney for Duvall and Sammamish. He is also recognized as a "Washington Super Lawyer" by Washington Law and Politics Magazine. Mike Kenyon successfully represented Medina and Clyde Hill in the Primm case all the way to Superior Court a few years back. Councilmember Biglow, has brought to our attention the Martindale Hubbell rating system, a peer review rating structure for attorneys. The committee consulted with Paul Sullivan of the MRSC. He said that in assisting cities with attorney selection, he has never seen or used the Martindale Hubbell list. During the interview we asked Wayne Tanaka about the Martindale Hubbell list and he didn't think it should be used as criteria for selecting City Attorneys. Bruce Disend was asked why he has not participated in the rating system and his answer was that he had never seen a need to participate. Attorneys that we consulted said it more important that we obtain good personal references from other cities that the firm or its representative has worked for in the past. The reference checks done by both Donna Hanson and the personnel committee were very positive. In conclusion, the Medina City Council Personnel Committee does endorse the recommendation of the Steve Victor and his firm of Kenyon Disend as our next city attorney. Respectfully, Mark L. Nelson Robert Rudolph Shawn Whitney Mayor Councilmember Councilmember As Chair of the Emergency Committte, I recommend that the Mayor and Council Members approve the attached Revised Hazard Mitigation Plan Annex and accompanying Resolution of Intention to Continue Participation in the King County Regional Hazard Mitigation Plan, with the exception of the provision for under -grounding cable and telecommunications lines. The most fundamental function of local gov't is public safety, and emergency preparedness is critical, particularly in the first 72 hours after a major event. I agree with most of the proposals are cost-effective, including Secure all electronic equipment 2,500 Create a CERT Team and encouraging active citizen response efforts 50,000 To provide disaster supply storage at Medina City Hall 25,000 and at strategic locations throughout the City of Medina 60,000 Bring Medina City Hall/Police Station compliant with current seismic standards 150,000 However, the citizens have spoken clearly by not passing a bond to support undergrounding. 2(. 1.5 million (only for city? totals >$22 million, most absorbed by citizens) ,j�pe *.�, j.. o. v:ZnTe —-�^�i �F �✓sv �� �, t �o+� : (' ��k�iTG Alternative means of com unication in an emergency or disaster situation) Not sure the analogy to World Trade Center is appropriate J" No evidence that that investment would save so many lives. In disaster, neighborhood response will be more important than central govt functions; focus should be on promoting neighborhood preparedness. (To provide for under -grounding of cable and telecommunications lines. 1.5 million Communications are a critical need in the event of a disaster. Continued abilities for communication would provide the important elements of security and safety for the community. It is difficult to put a dollar cost to the loss of a life. For this Initiative, $2.3 M is the figure used for loss of a life based on the attack of the World Trade Center of 9/11/ 2001.)