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City Council

Regular Meeting

Mount Vernon, WA · October 7, 2020

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City of Mount Vernon City Council Study Session Minutes October 7, 2020 6:00 p.m. (Virtual Meeting) The meeting was called to order by Mayor Boudreau at 6:00 p.m. Present: Councilmembers Beaton, Brocksmith, Carías, Hudson, Hulst, Moberg and Molenaar Staff Present: City Attorney Rogerson, Finance Director Volesky, Fire Chief Brice, Police Chief Cammock, Project Development Manager Donovan, Assistant Fire Chief Harris, Parks and Enrichment Director Berner, Public Safety Administrative Assistant Hall Citizens Present: 0 A. Public Safety Update: • Approval of September 2, 2020 Public Safety Committee Minutes Councilmember Hudson moved to approve the September 2, 2020 Public Safety Committee Minutes. Motion seconded by Councilmember Carías. Motion carried 7-0. • Police Department 2019 Annual Report Introduction – Police Chief Cammock reviewed crime 2019 statistics indicating most crime categories show decreased numbers. Population has increased while serious crime incidents have declined. Calls for service have also declined but remain at higher numbers than other area agencies. • Overview of Citizen engagement – Police Chief Cammock reviewed oversight measures including citizen engagement, budget and hiring practices and various citizen groups and boards. Internal investigation of serious matters requires two qualified community members and independent police shooting investigations include six community members representing Island and Skagit Counties. • Fire Station Exhaust System Update – Fire Chief Bryce provided an update of the Fire Exhaust System at Station 3. Plans have been delayed due to COVID-19 which has affected workload and spending. The two options being considered are an exhaust system placed in the station or placed directly on the apparatus. Will be moving forward with requests for proposals for both options. B. CARES Act Increased Funding and Extension - Amendment: Mr. Volesky requested approval of an Amendment A of the agreement with the Washington State Department of Commerce for additional federal Coronavirus Relief Funds. The contract provides an additional $536,100 funding and extends the contract end date to November 30, 2020. Councilmember Hulst moved to authorize Mayor Boudreau to enter into Amendment A of the Washington State Department of Mount Vernon City Council October 7, 2020 Page 2 of 3 Commerce contract for additional Coronavirus Relief Funds and Contract Extension. Motion seconded by Councilmember Molenaar. Motion carried 7-0. C. 2020 General Fund Budget Amendment: Mr. Volesky requested approval of an Ordinance to amend the 2020 General Fund budget to provide for additional Coronavirus Relief Funds and CARES reimbursements in the amount of $536,100. Councilmember Hudson moved to approve Ordinance 3813 amending the 2020 General Fund Budget in the amount of $536,100 for additional Coronavirus Relief Funds and CARES reimbursements. Motion seconded by Councilmember Beaton. Motion carried 7-0 D. Additional CARES Act Funding Plan: Mr. Donovan presented the Spending Plan for the additional CARES Act funding. The spending plan includes funding for staffing, an outdoor payment kiosk at City Hall, office remodels and small business grants totaling $536,100. Funding recommendations for community basic needs in the form of direct payments to non- profit agencies were reviewed. Mayor Boudreau discussed utility assistance distribution. Mr. Donovan explained the criteria and prioritization for small business grants which will be administered by EDASC. A discussion ensued regarding the funding of the utility payment kiosk. Councilmember Hulst moved to approve CARES Act funding plan in the amount of $536,100. Motion seconded by Councilmember Hudson. Motion carried 6-1, opposed by Councilmember Brocksmith E. 2021 Preliminary Budget – Overview: Mayor Boudreau reviewed the budget process. 2020 revenues did not decline as anticipated due to the COVID-19 pandemic, however the 2020 budget realized a $1,540,313 savings due to staff layoffs and furloughs. The primary focus in the 2021 budget is maintaining basic services. Mr. Volesky stated that the total 2021 Preliminary Budget is $71,172,319 which is a 1.5% increase from 2020. Mayor Boudreau reviewed infrastructure, healthy neighborhoods, tourism promotion and operations. Mr. Volesky stated that the budget does not include a request for increased property tax but does assume a 5% reduction in sales tax from 2019 actuals and adds Ground Emergency Medical Transportation (GEMT) funds and Managerial accounts. The budget being presented is a balanced budget and follows the City’s Fiscal Policies. Property Tax revenues and the budget schedule were reviewed. Mr. Volesky briefly discussed contents and format of the tabs in the budget binder. F. For the Good of the Order: • Councilmember Moberg announced her resignation effective immediately for health reasons. Mayor Boudreau and Council thanked her for her service and wished her well. The meeting was convened into Executive Session at 7:56 p.m. for a discussion with legal counsel on matters relating to enforcement actions, litigation or potential litigation to which the City, the governing Mount Vernon City Council October 7, 2020 Page 3 of 3 body, or a member acting in an official capacity is, or is likely to become, a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency. The estimated length of the Executive Session is forty-five minutes. The meeting was adjourned at 8:41 p.m. SUBMITTED BY: Becky Jensen, Recording Clerk ATTEST: Doug Volesky, Finance Director APPROVE: Jill Boudreau, Mayor

Agenda

CITY OF MOUNT VERNON CITY COUNCIL STUDY SESSION Agenda October 7, 2020 – 6:00 p.m. (Virtual Meeting) The Mount Vernon City Councilmembers will be participating in this meeting via video/teleconference technology. To virtually attend the meeting, the public may: 1. Call the conference line: 1-888-924-9240; Access Code: 3366211 (please ‘mute’ your phone, if possible, to minimize distractions) 2. Watch the meeting live on TV10: Comcast/Xfinity Channel 10 3. Watch the meeting live, online: https://www.youtube.com/channel/UCUob_hcQUmd4S93YkletdrA A. Public Safety Update • Approval of September 2, 2020 Public Safety Committee Minutes • Police Department 2019 Annual Report Introduction o Overview of Citizen engagement • Fire Station Exhaust System Update B. CARES Act Increased Funding and Extension – Amendment (Staff is requesting that Council authorize the Mayor to enter into an amended agreement with the Washington State Department of Commerce for additional federal Coronavirus Relief Funds and contract extension) (required action – motion) (staff contact – Doug Volesky) C. 2020 General Fund Budget Amendment (Staff is requesting that Council approve an ordinance to amend the 2020 General Fund budget to account for additional Coronavirus Relief Funds and CARES reimbursements) (required action – ordinance) (staff contact – Doug Volesky) D. Additional CARES Act Funding Plan (Staff is requesting that Council approve the spending plan for the additional CARES Act Funding Plan in the amount of $536,100.) (required action – motion) (staff contact – Doug Volesky) E. 2021 Preliminary Budget – Overview (Staff will present and give an overview of the 2021 Preliminary Budget to Council.) (required action – none) (staff contact – Doug Volesky) F. For the Good of the Order COMMITTEE MEETINGS Public Safety cancelled Next Ordinance 3813 Next Resolution 983 AGENDA ITEM: B DATE: October 7, 2020 TO: Mayor Boudreau and City Council FROM: Doug Volesky, Finance Director SUBJECT: APPROVAL OF ST DEPT. OF COMMERCE – AMENDED CORONAVIRUS RELIEF FUNDS CONTRACT RECOMMENDED ACTION: Staff recommends that Council authorize the Mayor to enter into an amended agreement with the Washington State Department of Commerce for federal Coronavirus Relief Funds. INTRODUCTION/BACKGROUND: Through the Coronavirus Relief Fund (CRF), the CARES Act provides for payments to State, Local and Tribal governments navigating the impact of the COVID-19 outbreak. The Treasury will make payments from the Fund, thru grants from the Washington State Department of Commerce, to local governments in Washington State. The CARES Act requires that the payments from the Coronavirus Relief Fund only be used to cover expense that: (1) are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19); (2) were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government; and (3) were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. Funds will be provided to cities and counties with populations under 500,000 that were ineligible to receive direct funding under the CARES Act. Each county will receive a minimum distribution of $250,000 and each city will receive a minimum distribution of $25,000. FINDINGS/CONCLUSIONS: The City of Mount Vernon has been previously awarded funds through the CRF in the amount of $1,072,200. Additional funding is now available and the City has been awarded an additional $536,100 bringing the new contract amount to $1,608,300. The Office of Financial Management (OFM), developed the allocation methodology and determined the jurisdiction amounts. The allocations were based on 2019 population estimated for each jurisdiction. The CRF also extended the use of these funds for costs incurred by local governments in response to the COVID-19 public health emergency during the period of March 1, 2020 thru November 30, 2020. All final requests for reimbursement must be submitted no later than December 15, 2020. Funds may not be used to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify under the statute. Although a broad range of uses is allowed, revenue replacement is not a permissible use of Fund payments. The use of these funds are very broad and flexible, and can be used for both operating and capital expenditures. There are six primary eligible cost categories as follows: 1. Medical expenses 2. Public health expenses 3. Payroll expenses 4. Expenses of actions to facilitate compliance with COVID-19 related public health measures 5. Expenses associated with the provision of economic support in connection with the COVID-19 public health emergency, and 6. Any other COVID-19 related expenses The intent of these funds is to help jurisdictions cover the immediate impacts of the COVID-19 emergency. Both direct costs to the jurisdiction and costs to their communities. Once the City has a signed contract, it will be routed to the Department of Commerce for signature. It generally takes two to four weeks to fully execute a contract. Once executed by Commerce a fully executed copy will be scanned and a pdf copy emailed to the City which will then have access to the funds. RECOMMENDATION: Staff recommends that Council authorize the Mayor to enter into this amended agreement with the Washington State Department of Commerce for federal Coronavirus Relief Funds. ATTACHED: Amended Interagency agreement with the City of Mount Vernon and the Washington Department of Commerce Amendment Contract Number: 20-6541C-256 Amendment Number: A Washington State Department of Commerce Local Government Division Community Capital Facilities Unit Coronavirus Relief Fund for Local Governments 1. Contractor 2. Contractor Doing Business As (optional) City of Mount Vernon 910 Cleveland Ave MOUNT VERNON, Washington 98273 3. Contractor Representative (only if updated) 4. COMMERCE Representative (only if updated) Doug Volesky Connie Rivera PO Box 42525 Finance Director Project Manager 1011 Plum St SE (360) 336-6207 (360) 725-3088 Olympia, WA 98504-2525 dougv@mountvernonwa.gov Fax 360-586-5880 connie.rivera@commerce.wa.gov 5. Original Contract Amount 6. Amendment Amount 7. New Contract Amount (and any previous amendments) $1,072,200.00 $536,100.00 $1,608,300.00 8. Amendment Funding Source 9. Amendment Start Date 10. Amendment End Date Federal: X State: Other: N/A: Date of Execution November 30, 2020 11. Federal Funds (as applicable): Federal Agency: CFDA Number: $1,608,300.00 US Dept. of the Treasury 21.019 12. Amendment Purpose: To provide additional funding for costs incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19) during the period of March 1, 2020 thru November 30, 2020. Final invoices must be received by December 15, 2020. COMMERCE, defined as the Department of Commerce, and the Contractor, as defined above, acknowledge and accept the terms of this Contract As Amended and attachments and have executed this Contract Amendment on the date below to start as of the date and year referenced above. The rights and obligations of both parties to this Contract As Amended are governed by this Contract Amendment and the following other documents incorporated by reference: Contractor Terms and Conditions including Attachment “A” – Scope of Work, Attachment “B” – Budget & Invoicing, Attachment “C” – A-19 Certification, Attachment “D” – A-19 Activity Report. A copy of this Contract Amendment shall be attached to and made a part of the original Contract between COMMERCE and the Contractor. Any reference in the original Contract to the “Contract” shall mean the “Contract as Amended”. FOR CONTRACTOR FOR COMMERCE Jill Boudreau, Mayor Mark K. Barkley, Assistant Director, Local Government Div Date Date APPROVED AS TO FORM ONLY Sandra Adix Assistant Attorney General 3/20/2014 Date Department of Commerce Amendment This Contract is amended as follows: Contract amount has been increased by $536,100.00. Contract end date has been extended from October 31, 2020 to November 30, 2020. Final reimbursement request must be received by December 15, 2020. ALL OTHER TERMS AND CONDITIONS OF THIS CONTRACT REMAIN IN FULL FORCE AND EFFECT. 2 AGENDA ITEM: C DATE: October 7, 2020 TO: Mayor Boudreau and City Council FROM: Doug Volesky, Finance Director SUBJECT: 2020 GENERAL FUND BUDGET AMENDMENT RECOMMENDED ACTION: City staff is requesting Council to approve an ordinance to amend the 2020 General Fund budget to account for additional awarded Coronavirus Relief Funds and CARES reimbursements. INTRODUCTION/BACKGROUND: Through the Coronavirus Relief Fund (CRF), the CARES Act provides for payments to State, Local and Tribal governments navigating the impact of the COVID-19 outbreak. The Treasury will make payments from the Fund, thru grants from the Washington State Department of Commerce, to local governments. The City of Mount Vernon was awarded $1,072,200 through the CRF and signed a contract on June 22, 2020 with the Washington State Department of Commerce for the reimbursement of these funds for qualifying COVID-19 related expenses. The City was awarded an additional $536,100 and approved an amended contract on October 7, 2020 bringing the new contract amount to $1,608,300. The City presented a spending plan for the additional funds to Council on September 23, 2020 for these funds and Council approved. FINDINGS/CONCLUSIONS: These revenues received in 2020 where not included in the 2020 General Fund budget and the City is requesting to amend the 2020 General Fund budget by increasing the revenues and expenditure appropriations as follows: - $536,100 for the Coronavirus Relief Funds to request reimbursement for the Council approved spending plan of COVID-19 related expenditures. RECOMMENDATION: City staff recommends Council approve the ordinance for the 2020 General Fund budget amendment. ATTACHED: Ordinance ORDINANCE NO. AN ORDINANCE OF THE CITY OF MOUNT VERNON, WASHINGTON, AMENDING THE 2020 CITY BUDGET WHEREAS, the Mount Vernon City Council adopted the 2020 annual budget on November 20th, 2019 pursuant to Ordinance No. 3796; and WHEREAS, as a result of the 2020 COVID-19 pandemic response, the federal government passed H.R. 748, the CARES Act on March 27, 2020; and WHEREAS, the City of Mount Vernon entered into a contract with Washington State Department of Commerce Local Government Division on June 22nd, 2020 awarding the City of Mount Vernon CARES funding in the amount of $1,072,200; and WHEREAS, the City of Mount Vernon entered into an amended contract with Washington State Department of Commerce Local Government Division on October 7th, 2020 awarding the City of Mount Vernon an additional $536,100 bringing the new contract amount to $1,608,300; and WHEREAS, these costs or revenues were not included in the 2020 adopted budget, a re- appropriation budget amendment is necessary to accommodate the costs and revenues that will be incurred in 2020; and WHEREAS, the General Fund has available funds for the projects. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MOUNT VERNON, WASHINGTON, DOES ORDAIN AS FOLLOWS: Section 1. In accordance with RCW 35A.33.120 (2), the 2020 budget for the City of Mount Vernon, Washington, is hereby increased as follows: A. The General Fund budgeted expenditures and revenue appropriations shall be increased by the CARES funds in the amount of $536,100. Section 2. Effective Date. This ordinance shall take effect and be in full force five (5) days after publication of a summary of this ordinance. PASSED AND ADOPTED this 7th day of October, 2020. _____________________________________ Doug Volesky, Finance Director SIGNED AND APPROVED this ____ day of October, 2020. _____________________________________ Jill Boudreau, Mayor Approved as to form: ____________________________ Kevin Rogerson, City Attorney Published: _______________________ AGENDA ITEM: D DATE: October 7, 2020 TO: Mayor Boudreau and City Council FROM: Doug Volesky, Finance Director SUBJECT: ADDITIONAL CARES ACT FUNDING PLAN RECOMMENDED ACTION: Staff is requesting that Council approve the spending plan for the additional CARES Act Funding Plan in the amount of $536,100. INTRODUCTION/BACKGROUND: The City of Mount Vernon has been previously awarded funds through the Coronavirus Relief Fund in the amount of $1,072,200. Additional funding is now available and the City has been awarded an additional $536,100 bringing the new contract amount to $1,608,300. The CRF also extended the use of these funds for costs incurred by local governments in response to the COVID-19 public health emergency during the period of March 1, 2020 thru November 30, 2020. All final requests for reimbursement must be submitted no later than December 15, 2020. FINDINGS/CONCLUSIONS: The City is requesting approval on a spending plan so the City can move forward in order to meet the designated deadline. The suggested spending plan includes: IT Staffing $30,000 TV10 Staffing 19,000 Admin Staffing 17,000 Outdoor Payment Kiosk 84,825 Remodel Costs 85,000 Small Business Grants 300,275 Total: $536,100 RECOMMENDATION: Staff is requesting that Council approve the spending plan for the additional CARES Act Funding Plan in the amount of $536,100. ATTACHED: None AGENDA ITEM: E DATE: October 7, 2020 TO: Mayor Boudreau and City Council FROM: Doug Volesky, Finance Director SUBJECT: 2021 PRELIMINARY BUDGET - OVERVIEW RECOMMENDED ACTION: No action is required. INTRODUCTION/BACKGROUND: City staff will be presenting the 2021 Preliminary budget books to Council so that they may begin their review. FINDINGS/CONCLUSIONS: The total 2021 proposed budget for the City of Mount Vernon is $71,172,319, which is an 1.5% increase compared to the 2020 adopted budget. Total governmental operating fund budgets for 2021 total $36,014,260, a 1.22% decrease compared to the 2020 adopted budget. The preliminary budget will continue to be adjusted per Council’s direction prior to adoption. RECOMMENDATION: None ATTACHED: None

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