Shoreline City Manager report 7-20-2015

Monday, July 27, 2015

City Manager Update 7/20/2015
From Debbie Tarry, Shoreline City Manager

Council Meetings

July 20
·         Veteran’s Recognition Plaza Groundbreaking: Council joined members of the Shoreline Veterans Association in a brief groundbreaking ceremony for the Veterans Recognition Plaza to be built on the north lawn of the City Hall campus.  Significant progress has already been made on the project.

·         Business Meeting

o   Discussion of the Landscape Conservation and Local Infrastructure Program Feasibility Study: The City Council gave staff direction to continue to move forward on the analysis and partnership of this program with King County. The Landscape Conservation and Local Infrastructure Program (LCLIP) was passed into State Law in 2011. LCLIP creates incentives for both land conservation in the county and infrastructure improvements in the city.The City received a grant to study the feasibility of applying LCLIP in the 145th and 185th light rail station subareas, Town Center, and the Community Renewal Area (Aurora Square). The purpose of the program is to encourage the Transfer of Development Rights (TDR) with a public infrastructure financing tool called tax increment financing (TIF). This program seeks to credit added development potential in exchange for preservation of natural and rural lands in the county. At the same time it will provide additional revenues to the City, by the County giving portion of their property tax from the value of the new construction, to pay for improvements such as plazas, parks, sidewalks, bike lanes, etc. to encourage vibrant, livable cities. The study shows a range of situations in which LCLIP could succeed. Although this is the case, we have to take into account the potential for development happening slower than projected, which could result in the City having to buy the TDR credits and the balance of staff resources, other workplan priorities.

o   Executive Session – Litigation.

July 27
·         Dinner Meeting (5:15 p.m.): We will tour City capital projects.

·         Business Meeting
o   Proclamation of National Night Out Against Crime: Echo Lake resident Jeanne Monger will accept the proclamation.

o   Motion to Authorize the City Manager to Write Off Debt: At this time, there are two large outstanding gambling tax debts that staff has deemed as being uncollectible. Staff recommends that Council authorize the City Manager to write off debt in the amounts of $149,528 owed by Slam Dunk Entertainment and $11,629 owed by Gloria Kalitovic.

o   2015 Surface Water Utility Revenue Bond Issuance: The City Council approved the use of $2,000,000 in debt financing in 2015 and 2017 as part of the Surface Water (SWM) Utility Fund 2015-2020 Capital Improvement Program (CIP) for the Stormwater Pipe Replacement Program. Council is required to authorize the issuance of debt via ordinance. This will be a review of a draft Bond Authorization Ordinance to issue bonds for Council approval on August 17, 2015.

o   2015 State Legislative Session Wrap-Up: The 2015 Legislature finished Sine Die (officially finished) for the third Special Session on July 10, 2015, capping the longest legislative session in Washington State History. The Legislature passed a $16 billion transportation package to fund projects over the next 16 years, funded primarily by an increase in the state gas tax. Overall, Shoreline’s Legislative Priorities were well covered, including directly achieving three of the five Council priorities.

Agenda Planner Highlights
·         August 10 Council MeetingThis is back on and the two action items are Ordinance No. 705 – CRA Planned Action and Ordinance No. 712 – Sign Code (CRA).

Financial Update – Real Estate Excise Tax (REET)
REET collections, which is generated when properties sell in Shoreline, continues to exceed budget and revised projections. A few highlights from the June and 2nd Quarter REET summary include:

·         There were seven properties that sold for over a million dollars in June. Three single family homes and four commercial properties, including the Haggen on Aurora Avenue for $10.7 million, which previously sold in February 2015 for $9.3 million.

·         The tax collected through the end of the 2nd Quarter was $1,309,511, which is $477,547, or 57.4% more than 2014. It is $438,037, or 50.3%, over the 2015 budgeted amount through the 2nd quarter.

This and That
·         Mayor Winstead sent letters to the 32nd District State Delegation(Sen. Chase, Rep. Kagi, and Rep. Ryu) thanking them for their work and support of City issues during the legislative session.

·         We received notification on Thursday that Dockside Cannabis, 15029 Aurora Ave N, was cited by the Liquor Control Board for selling marijuana to a minor. The Liquor Control Board conducted a check at every open marijuana retailer across the state (157 locations) from mid-May until the end of June. There were a total of 19 retailers cited for selling to minors. First penalty for Sale to a minor is a 10-day suspension or $2,500 fine.


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