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Public I "orks Department Pete Mayer; interi <br />Director <br />Thomas McLeod, Mayor <br />INFORMATIONAL MEMORANDUM <br />TO: Transportation and Infrastructure Services Committee <br />FROM: Pete Mayer, Deputy City Administrator/ Interim Public Works Director <br />BY: Griffin Lerner, Public Works Analyst <br />CC: Mayor McLeod <br />DATE: May 23, 2025 <br />SUBJECT: Amendment No.1 to Interlocal Agreement (ILA) with King County for Surface Water <br />Billing Services <br />ISSUE <br />Approve Amendment No.1 to the existing ILA (City Contract #18-126) between the City of Tukwila and <br />King County for the provision of surface water management billing and collection services. This <br />amendment updates billing practices to reflect the upcoming 2026-year change in the surface water <br />rate structure. <br />BACKGROUND <br />In 2018, the City entered into an ILA with King County, through which the County began including <br />surface water fees on property tax statements issued to property owners. Implemented in 2019, this <br />billing approach streamlined the billing process, reduced the administrative burden on City staff, <br />improved collections, and provided a more convenient payment method for residents. <br />Since implementation, the City has continued to maintain parcel -level fee data, while King County <br />manages billing, collections, and customer service related to the Surface Water Management fee. The <br />original agreement was set to expire in 2028. <br />DISCUSSION <br />In preparation for the 2025-2026 biennium, the City partnered with FCS Group to complete a <br />comprehensive utility rate study. As a result of this work, the City Council adopted a new Equivalent <br />Residential Unit (ERU)-based fee structure effective January 1, 2026. To implement this revised <br />structure, the City must transmit updated parcel -level ERU data to King County for billing beginning with <br />the 2026 tax year. This amendment facilitates this transition by enabling updates to King County's <br />billing system to accommodate ERU-based charges. <br />FISCAL IMPACT <br />The per -account fee of this agreement is estimated to be roughly $2.00 per parcel in 2026. There is <br />also a one-time database set-up charge of up to $70,000. This will be paid for by the Surface Water <br />Enterprise Fund. <br />RECOMMENDATION <br />Council is being asked to accept an amendment to our Interlocal Agreement (ILA) and consider this <br />item on the Consent Agenda at the June 2, 2025 Regular Council Meeting. <br />Attachments: Draft Amendment <br />25 <br />