Finance & Economic Development CommitteeCouncil Present:
August 23, 2010
12:00 – 1:20 p.m.
Chair, Andy Ryder, Jason Hearn
Greg Cuoio, Scott Spence, Ken Ahlf, Rick Walk, Lori Flemm, Tim McGuire, Brad Burdick, Peri Edmonds
Capital Facilities Plan
Lori Flemm, Parks & Recreation Director, presented the Committee with an update to the General Government and Parks sections of the Capital Facilities Plan (CFP), which is a required element of the City’s Comprehensive Plan. The CFP planning process gives the City an opportunity to identify funding sources and a strategy to secure outside funding necessary to implement projects identified in the action program of the Comprehensive Plan. It also provides direction for the next six years to acquire and develop parks, trails, and facilities to meet the needs of the community identified in the Comprehensive Plan.
Lacey’s CFP was last adopted by Ordinance 1285 on April 26, 2007, and is scheduled to be updated beginning in 2012 to cover the period 2013-2032. With the adoption of the Comprehensive Plan for Outdoor Recreation on July 22, and the need for consistency between the two documents, it triggered this early update of the General Government and Parks sections in the CFP.
The update to the CFP includes the Senior Center expansion project, Depot reconstruction project, Woodland Creek Community Park Trailhead, Wanschers Park Phase 2 Development, planning for Lake Lois Habitat Reserve, and three property acquisitions. All of these projects and acquisitions are anticipated to be completed within the next six years. Councilmember Hearn inquired whether the Chambers Lake Natural Area will be included in the CFP. Lori responded that she will check with Public Works staff to determine if the area is already designated for possible stormwater runoff. If not, she will include a project in the CFP.
The Board of Park Commissioners met on July 26 to begin an update of the CFP, which will be reviewed at their regular meeting on August 23. It will then be posted on the City website August 25, with paper copies available at the Lacey Timberland Library Reference Desk and City Hall for public review and comment prior to the public hearing before the Planning Commission on September 21. Notice of the draft CFP will be mailed to local and state agencies for review.
Project funding is contingent upon Council review and approval of proposed expenditures. The CFP does not obligate the Council to fund projects in the next six years, but rather provides a placeholder for these important community priorities.
The primary sources of funding for property acquisitions are the 1% utility tax in the Parks and Open Space Account, developer dedication of land through mitigation, contributions from the General Fund, and grant funds.
Park and facility development is heavily reliant upon these sources of revenue as well. Most recent park development was financed with a voter approved bond issue of $9.9 million in 2002.
Committee members agreed to forward the update to the General Government and Parks sections of the Capital Facilities Plan to the full Council.
Exchange of Easements with LOTT
Ken Ahlf, City Attorney, briefed the Committee on the request by LOTT Alliance to grant them an easement over a portion of the land the City owns next to the LOTT Treatment Plant on Martin Way.
Brad Burdick, Public Works Operations Manager, stated the City owns property adjacent to the LOTT Treatment Plant, which is used for material storage and operations. During the City’s discussion with LOTT, it was determined that it would be beneficial for operation of the remaining City land to be granted an easement from LOTT which will allow easier turning radius for large City vehicles and other uses.
Ken noted that appraisal reports were prepared for both parcels and, subsequent to the receipt of those reports, attorneys for both parties proposed an agreement for exchange of easements which would use consistent land values per square foot. This proposed agreement would result in LOTT owing Lacey $269,217.19 and Lacey owing LOTT $58,113.63. The proposed agreement would result in LOTT paying the difference upon closing of $211,103.56.
Committee members agreed to forward a recommendation to full Council to approve the exchange of easements between LOTT and the City of Lacey.
Modification of Business & Occupation Tax Ordinance
Ken Ahlf, City Attorney, presented modifications to the City’s Business & Occupation Tax Ordinance. He noted the modifications will be consistent with the mandates specified in recent amendments made by the Washington State Legislature.
The Legislature mandated the development by the cities and the Municipal Research Center of a Model Business & Occupation Tax Ordinance to be effective as of January 1, 2008. After development of the Model Ordinance, the City enacted Ordinance No. 1232, which established those provisions as part of Chapter 3.02 of the Lacey Municipal Code. Subsequently, the Council passed Ordinance No. 1303, which amended provisions of this Code to be consistent with new mandates by the Legislature. The Legislature has now adopted additional mandatory provisions defining digital services and products, and custom and prewritten software programs, and specifying which jurisdictional location can tax the printing of newspapers, magazines, and periodicals. The proposed Ordinance follows those mandates. Also, the Ordinance makes the terms of the City Code regarding the taxability of insurance companies consistent with the State Business and Occupation Tax provisions. Finally, the Ordinance carries out current City policy by exempting non-profit organizations qualified under the Internal Revenue Code from business and occupation taxes.
Committee members agreed to forward a recommendation to full Council to approve the modification to the City’s Business & Occupation Tax Ordinance.
In additional business, Councilmember Ryder requested staff update the full Council on the status of Carpenter Road.