HomeMy WebLinkAboutCOW 2005-10-10 Item 4A.2 - Project - LID Feasibility Study for Tukwila Urban Center Access (Klickitat) COUNCIL AGENDA SYNOPSIS
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ITEM INFORMATION
CAS NUMBER. 05-129 ORIGINAL AGENDA DAIE. OCTOBER 10, 2005
AGENDA ITEM TITLE Tukwila Urban Center Access (Klickitat /Southcenter Pkwy)
Local Improvement District (LID) Feasibility Study
CATEGORY Dzscusszon Motion Resolution Ordinance Bid Award Public Heanng Other
Illtg Date zlltg Date Mlltg Date 11Itg Date Mtg Date Mtg Date illtg Date 10/10/05
SPONSOR El Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PTY/
SPONSOR'S The Tukwila Urban Center Access Project located at Southcenter Parkway and Klickitat
SUMMARY Drive has staff aggressively pursuing grants and impact fees to fund the project. Any
grants would require a true private contribution of 10% of the overall costs. A Local
Improvement District could be formed to collect the private contributions. This feasibility
study would have a certified appraiser determine if a LID is possible, as they are legally
restricted from assessing more than the project would increase property values.
REVIEWED BY COW Mtg CA &P Cmte F &S Cmte Transportation Cmte
Utihties Cmte Arts Comm. Parks Comm. Planning Comm.
DA 1'E. 8/22/05
RECOMMENDATIONS:
SPONSOR /ADMIN Authorize Mayor to sign contract with Macaulay Associates.
COMBHr1EE Authorize Mayor to sign contract.
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$24,999.00 $1,000,000.00
Fund Source. 104.02 Commercial Streets (pg 42, 2005 CIP)
Comments Original estimate for feasibility study at Transportation Committee was S20,000
MTG. DATE RECORD OF COUNCIL ACTION
MTG. DATE ATTACHMENTS
10/10/05 Information Memo dated September 19, 2005
Information Memo dated August 17, 2005
Consultant Agreement with Exhibit A
Transportation Committee Minutes from August 22, 2005
1
INFORMATION MEMO
To:
From:
Date:
Subject:
Mayor Mullet
Public W orks Directo~
September 19, 2005
Tukwila Urban Center Access/Klickitat Project
Project No. 84-RW19
LID Feasibility Study
ISSUE
Consultant agreement with Macaulay & Associates to conduct a LID Feasibility Study for the
Klickitat Project.
BACKGROUND
On July 27,2005, Lee Voorhees, an attorney with Foster Pepper Shefelman spoke with staff on
the basics of forming Local Improvement Districts, One key recommendation that Mr.
Voorhees made to staff was to consIder doing a feasibility study on whether an LID would be
fInancially benefIcial for a specific project. LIDs are complex funding mechanisms that are
legally restricted from assessing more than the project would increase property values
Therefore making sure that a project does, indeed, increase property values is essential. Mr.
Voorhees suggested that such a study could be done by any MAl certifIed appraiser.
ANALYSIS
Three appraisal fInns were on the City's Consultant Roster: Appraisal Group of the Northwest,
Allen Brackett Shedd, and Macaulay & Associates, The Appraisal Group of the Northwest
declined to submit a proposal due to their own time constramts but the other two did submit.
Macaulay & Associates were selected as they demonstrated the best understandmg of what the
City is wanting to accomphsh as well as had a shorter tlITle for completion.
RECOMMENDATION
Approve consultant agreement for appraIsal services wIth Macaulay & Associates in the amount
of $24,999,00.
p \cyndy\klickitat\information memo - macaulay feasibility contract.doc
10/06/05
INFORMATION MEMO
To:
Mayor Mullet
Public Works Directo~
August 17, 2005
Tukwila Urban Center Access/Klickitat Project
Project No. 84-RW19
LID Feasibility Study
From:
Date:
Subject:
ISSUE
Update on the funding picture for the Tukwila Urban Access ImprovementIKlIckItat project.
BACKGROUND
As the design of the Klickitat project proceeds, staff and the HNTB team are keeping close track of possible
funding sources for construction, Staff will be aggressively pursing grants, both federal and state, as well as
ensuring collection of traffic impact fees There is, however, a strong likelihood that there will not be enough
grant sources, impact fees, and other contributions to have a full fundmg package.
At the Value Engineering presentation, a representative of the Transportation Improvement Board was
present. Staff took the opportunity to discuss this project and ask for an opinion of the potential success of a
grant being awarded during this year's funding cycle, The estimated amount of the request would be $5
million. It was strongly advised that the City not pursue a grant this year The TIB prefers to award funds to
projects ready to start construction, which means that the design would need to be complete or nearly
complete, and all environmental work (including permits) also be done or nearly so Staff was also advised
that the Till wants to see a true private contribution toward the cost to be at least 10 % of the overall cost.
Staff was advised that for a project of this magnitude, the Till would expect to see a Local Improvement
District (LIDs) or some kind of similar way of collectmg pnvate contributIOns,
ANALYSIS
Upon the advice of the TIB, staff asked Lee Voorhees, an attorney with Foster, Pepper, & Shefelman who is
an expert on forming LIDs, to come and speak about what an LID entails and how to go about forming one.
Staff from both the Public Works and Commumty Development Departments attended this briefmg, as did
both Mayor Mullet and Rhonda Berry, CIty Administrator
Specific to the Klickitat project, Mr. Voorhees recommended that the City retain a certified appraiser to
conduct a feasibility study Such a study would offer mSlght mto the area of benefit that could be assessed for
thIS improvement, as well as aid in determining if an LID would be a feasible method for collecting private
contributions. Mr. Voorhees estimated that such a study could be conducted for approximately $20,000 and
could be done in 2 - 3 mont hs,
Formation of an LID can take 12 - 18 months to complete There is a possibilIty that, pendmg secured
funding, the Klickitat project could be built in 2007, ThIs could allow the City to get a quality contractor for
the work prior to the 1-405 widening gettmg started. Concern over availabilIty of contractors dnvmg up
construction costslbids was factored into this potential accelerated schedule
RECOMMENDATION
Authorize staff to solicit proposals from certified appraisers to develop an LID Feasibility Study for the
Kllckitat project.
\\tuk2\vol1\pubworks\cyndy\klickilat\information memo -lid discu.ssion 8-22-05.doc
CONSULTANT AGREEMENT FOR
APPRAISAL SERVICES
THIS AGREEMENT is entered mto between the City of Tukwila, Washmgton, herein-after referred
to as "the City", and Macaulay & Associates heremafter referred to as "the Consultant", in
consideratIOn of the mutual benefits, terms, and condItIOns heremafter specIfied.
1 Project Designation. The Consultant is retained by the CIty to to conduct a prelIminary
feasIbIlIty study and boundary recommendation for a proposed Local Improvement District
servIces in connection with the project tItled Tukwlla Urban Center Access Improvement
ProiectlKlickItat
2 Scope of Services. The Consultant agrees to perform the servIces, Identified on Exhibit "A"
attached hereto, including the provisIOn of all labor, matenals, equipment and supplIes.
3 Time for Performance. Work under this contract shall commence upon the giving ofwntten
notIce by the City to the Consultant to proceed. The Consultant shall perform all services and
provIde all work product requIred pursuant to this Agreement within 45 calendar days from
the date written notIce IS given to proceed, unless an extension of such time IS granted in
'writmg by the City,
4 Payment. The Consultant shall be paid by the City for completed work and for services
rendered under this Agreement as follows
A. Payment for the work provided by the Consultant shall be made as provided on Exhibit
"A" attached hereto, provided that the total amount of payment to the Consultant shall not
exceed $24,999 wIthout express wntten modIfication of the Agreement sIgned by the
CIty
B. The Consultant may submit vouchers to the CIty once per month dunng the progress of
the work for partial payment for that portion of the project completed to date. Such
vouchers wIll be checked by the City and, upon approval thereof, payment shall be made
to the Consultant in the amount approved,
C
Final payment of any balance due the Consultant of the total contract pnce earned will be
made promptly upon ItS ascertamment and venfication by the CIty after the completion of
the work under thIS Agreement and ItS acceptance by the City
D
Payment is provided m this section shall be full compensation for work performed,
services rendered, and for all materials, supplIes, equipment and incidentals necessary to
complete the work.
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E, The Consultant's records and accounts pertammg to this Agreement are to be kept
available for inspectIOn by representatives of the City and state for a period of three (3)
years after final payments Copies shall be made available upon request.
5 Ownership and Use of Documents. All documents, drawings, specificatIOns and other
materials produced by the Consultant in connection with the services rendered under this
Agreement shall be the property of the CIty whether the project for which they are made IS
executed or not. The Consultant shall be permitted to retam copIes, mcluding reproducible
copies, of drawings and specifications for information, reference and use m connectIOn wIth
the Consultant's endeavors. The Consultant shall not be responsible for any use of the saId
documents, drawings, specIficatIOns or other matenals by the CIty on any project other than
the project specified in this Agreement.
6 Compliance with Laws. The Consultant shall, in performmg the services contemplated by
this Agreement, faIthfully observe and comply with all federal, state, and local laws,
ordinances and regulations, applicable to the services to be rendered under this Agreement.
7. Indemnification. The Consultant shall mdemnify, defend and hold harmless the City, its
officers, agents and employees, from and against any and all claims, losses or liability,
mcluding attorney's fees, arising from injury or death to persons or damage to property
occasIOned by any act, omIssion or failure of the Consultant, its officers, agents and
employees, in performing the work required by thIS Agreement. With respect to the perform-
ance of this Agreement and as to claims against the CIty, ItS officers, agents and employees,
the Consultant expressly Waives ItS immunity under Title 51 of the Revised Code of
Washington, the Industrial Insurance Act, for inJunes to its employees, and agrees that the
obligatIOn to indemnify, defend and hold harmless provIded for in this paragraph extends to
any claim brought by or on behalf of any employee of the Consultant. ThIS WaIver is mutually
negotIated by the parties. This paragraph shall not apply to any damage resulting from the
sole negligence of the City, its agents and employees. To the extent any of the damages
referenced by this paragraph were caused by or resulted from the concurrent neglIgence of the
CIty, its agents or employees, this obligation to indemnify, defend and hold harmless IS valid
and enforceable only to the extent of the negligence of the Consultant, its officers, agents and
employees.
8, Insurance. The Consultant shall secure and maintain in force throughout the duration of thIS
contract comprehensive general liabilIty lllsurance, with a mIlllmum coverage of $500,000 per
occurrence and $1,000,000 aggregate for personal lllJUry; and $500,000 per occurrence/
aggregate for property damage, and professional liability insurance in the amount of
$1,000,000.
Said general lIability policy shall name the CIty of Tukwlla as an addItional named insured
and shall include a provision prohibiting cancellation of said polIcy except upon thirty (30)
days prior wntten notice to the City Certificates of coverage as reqmred by thIS section shall
be delIvered to the City within fifteen (15) days of execution of thIS Agreement.
2
9 Independent Contractor. The Consultant and the Crty agree that the Consultant is an inde-
pendent contractor with respect to the services provIded pursuant to this Agreement. Nothing
in this Agreement shall be considered to create the relationshIp of employer and employee
between the parties hereto Neither the Consultant nor any employee of the Consultant shall
be entItled to any benefits accorded CIty employees by virtue of the services provIded under
this Agreement. The City shall not be responsible for withholding or otherwise deducting
federal income tax or social secunty or for contributmg to the state mdustrial insurance
program, otherwIse assummg the duties of an employer with respect to the Consultant, or any
employee of the Consultant.
10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or
retained any company or person, other than a bonafide employee working solely for the
Consultant, to solicIt or secure this contract, and that he has not paid or agreed to pay any
company or person, other than a bonafide employee workmg solely for the Consultant, any
fee, commission, percentage, brokerage fee, gifts, or any other consIderatIOn contingent upon
or resulting from the award or making of this contract. For breach or vIOlatIOn of this warrant,
the City shall have the right to annul thIS contract without lIability, or m ItS dIscretIOn to
deduct from the contract price or consideratIOn, or otherwIse recover, the full amount of such
fee, commissIOn, percentage, brokerage fee, gIft, or contingent fee,
11. Discrimination Prohibited. The Consultant, wIth regard to the work performed by it under
this Agreement, will not dIscriminate on the grounds of race, color, national origin, relIgion,
creed, age, sex or the presence of any physIcal or sensory handIcap m the selection and
retention of employees or procurement of materials or supplIes,
12 Assignment. The Consultant shall not sublet or assIgn any of the servIces covered by this
Agreement without the express written consent of the CIty
13. Non-Waiver. Waiver by the City of any provision of this Agreement or any time limitatIOn
provided for in this Agreement shall not constitute a waiver of any other provisIOn.
14 Termination.
A. The City reserves the right to terminate thIS Agreement at any tIme by givmg ten (10)
days wntten notice to the Consultant.
B. In the event of the death of a member, partner or officer of the Consultant, or any of its
supervisory personnel assigned to the project, the survIving members of the Consultant
hereby agree to complete the work under the terms of this Agreement, if requested to do
so by the City This section shall not be a bar to renegotiations of thIS Agreement
between survlvmg members ofthe Consultant and the City, ifthe City so chooses,
15 Attorneys Fees and Costs. In the event eIther party shall bring SUIt against the other to
enforce any provIsIOn of this Agreement, the prevmlmg party in such suit shall be entitled to
3
recover its costs, mcluding reasonable attorney's fees, incurred in such suit from the losing
party .
16 Notices. Notices to the City ofTukwIla shall be sent to the following address
City Clerk
City of Tukwila
6200 Southcenter Boulevard
Tukwila, WA 98188
NotIces to Consultant shall be sent to the followmg address'
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17 Integrated Agreement. This Agreement, together with attachments or addenda, represents
the entire and integrated Agreement between the City and the Consultant and supersedes all
prior negotiations, representations, or agreements written or oral. This Agreement may be
amended only by written instrument signed by both the City and the Consultant.
day of
,20
DATED this
CITY OF TUKWILA
CONSULTANT
~n M. Mullet, Mayor
By.
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Printed Name:
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Attest! Authenticated:
Approved as to Form:
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Office of the City Attorney .
Jane E. Cantu, CMC, City Clerk
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Jt{acaulay
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ssocia tes L td. Real Estate Appraisers & Consultants
_~~~~olb'y Ave~e~Suite 100 -= ~verettr WA 982Q!
Everett 425-258-2611 · Seattle 206-382-9711 · Fax 425-252-1210
Charles R. Macaulay, MAl
Robert J Macaulay, MAl
Jim E. Dodge
Yvonne Alexander-Smith
Whitney B. Haucke, CPA
Anna Soper
Paul C. Bird
Richard J DeFrancesco
Greg Muller
Kelly R. Hao
Teresa M. Comellison
August 24, 2005
RECEIVED
AUG 2 5 2005
Ms, Cyndy Knighton
Senior Transportation Engineer
City of Tukwila
6300 Southcenter Blvd., Suite 100
Tukwila, W A 98188-2544
TUKWILA
PUBUC WORKS
Re: Time and fee proposal for a preliminary feasibility study/ boundary recommendation for the proposed
Klickitat Drive local improvement district (LID), Tukwila, Washington.
Dear Ms. Knighton:
It was good to meet with you last week. In accordance with your request, I have prepared the following time
and fee proposal for the above-referenced project. The scope of the assignment is to prepare a feasibility study
to ascertain whether there is sufficient market value enhancement to specially benefited properties as a result
of the proposed road improvement project to render it economically feasible. As part of this preliminary
study, boundanes for the proposed LID would be recommended.
The first phase of our feasibility analysis involves a base study consisting of the assemblage of pertinent
market data regarding the environmental, economic, governmental and social forces influencing the subject
vicinity. Consideration will be given to current zoning and land use trends, building improvements, wetland
aregs (if any), highest and best use and other factors influencing market value of affected property without and
then with the amenity of the LID project. This base study will provide the foundation for recommending an
LID boundary that consists of those properties specially benefited by the new road improvement project.
Once the LID boundary is established, individual parcels will be separated into property classes based on
highest and best use. Representative parcels within each class will be analyzed both without the LID project
and again with the LID assumed complete. The difference in market value (typically expressed as a range)
will then be extrapolated over all the other similar properties in that classification to arrive at an estimate of
special benefit to each property class due to the project. Once this process is completed for the various
property classes, the special benefit ranges are then totaled, yielding an estimated range in economic
enhancement or special benefit attributable to the proposed project. A report will then be prepared briefly
summarizing our recommended LID boundary and value conclusions,
Based on the above scope of work, completion time for the assignment-assuming that we receive
authorization to proceed by September 5, 2005-would be five to six weeks. One issue we discussed at our
meeting regarding the city's mitigation policy towards property for which contributing to the costs of
constructing Klickitat Drive is a requirement for development would need to be reviewed and addressed as
it will impact the estimated special benefit and the LID boundary recommendation, As I mentioned at the
meeting, input from bond counsel on this matter would be very helpful.
Ms. Cyndy Knighton
August 25, 2005
Page Two
Below is our proposed fee estimate, which we have prepared after reviewing other similar projects recently
completed by our office.
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- ^ppr~Jser ~ , <TasRS,- -Estimated -Hourly -Total -
- ,,~-'" c: ij.ours ~te
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- ~ ~
Robert 1. Macaulay, Property inspection, valuation
MAl analysis, consultation/meetings, report 60 $200 $12,000
preparation/review
Greg Muller, Project coordination, market research,
Associate Appraiser spreadsheet compilation, property data 145 $90 $13,050
review/analysis, report preparation
assistance
Total proposed fee $25,050
The above fee estimate does not include preparation for or presentation at the LID formation hearing or time
for meetings with individual property owners. It does include a reasonable number of meetings and
consultations with city staff and other engineering personnel, as needed to obtain adequate information for
completion of the study and to keep the city informed of our progress.
As discussed in the information I sent you, we have completed similar studies for a number of large road
improvement projects involving regional shopping centers (Alderwood Mall and Bellis Fair Mall), as well
as large commercial areas impacted by road improvement projects.
This looks like an interesting and challenging assignment and we appreciate the opportunity to make this
proposal. Please don't hesitate to call if you have any questions.
Respectfully submitted,
MACAULA Y & ASSOCIATES, LTD.
47" ;;t.A'
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Robert J Macaulay, MAl
W A State Certified - General Appraiser No. 1100517
Knighton.D8DS
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Transportation Committee
August 22, 2005
Present:
Jim Haggerton, Chair; Pam Carter, Dennis Robertson
Jim Morrow, Frank marte, Cyndy Knighton, Brian Shelton, Bob GIberson, Robin
Tischmak, Derek Speck, Lucy Lauterbach; Dave Markley
1. KJickitat Road Closure When a value engineering study was done of the Klicla.tat project,
no major flaws were found. One suggestion from the engineering team however, was to consider
closing all the roads in the project down while the project was bemg constructed. In that manner,
it could be finished in one season, and the project cost could save $3-$5 million. The CommIttee
also considered a partial closure, with smaller savings. Staff showed how an eXIt from 1-5
northbound could exit at Nordstrom's driveway at the Mall, and they also had other exit
strategies for people who could not use the usual Klickitat route. The Committee agreed to
pursue the complete closure option, Staff will take the proposal to the Mall and Chamber of
Commerce. Recommend issue to Council.
2. TUC/Klickitat Fundin2 Staff and the HNTB team have been looking for funds to bUIld the
Klickitat project. When Value Engineering was done on the project, one of the team members
from the TIB suggested a grant proposal with private funding could be more successful, and that
LIDs were one way to get that investment. Attorney Lee Voorhees suggested the City perfonn a
feasibility study of the potential LID area, and study whether an LID would work for funding the
project. This could be done for about $20,000 by a certified appraiser. If an LID were used, and
all went smoothly, the project could be ready to build in 2007, which would be a good building
climate, Dennis asked why the Till requirement for private funding of 10% of the cost was not
applied to TIB or Southcenter Parkway. Jim M said it is a new requirement, but Southcenter does
have private funding. Outside funding for the entire Klickitat project was also studied. The
Committee recommended the LID study to ascertain whether an LID would be useful.
Recommend LID study for $20.000.
3. Grant Applications Public Works showed the projects that could be submitted for Federal
Enhancement grants next week. Pam pointed out one of the projects was not III the CIP. The
Committee suggested staff apply for grants fot four enhancement projects (Klickitat/Southcenter
Access, Interurban Avenue, TIB Phase IV and the Transit Center ped improvements), For Till
they recommended Interurban Ave., Southcenter Parkway Extension, and TIB Phase IV grants
be applied for. Information; authorization to apply for 2rants.
~'h II Committee chair approval