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HomeMy WebLinkAboutFS 2010-02-02 COMPLETE AGENDA PACKET1. PRESENTATION(S) 2. BUSINESS AGENDA d. e. City of Tukwila Finance and Safety Committee O De'Sean Quinn, Chair O Allan Ekberg O Kathy Hougardy Pre Retreat Budget Review (please bring your budget books). AGENDA TUESDAY, FEBRUARY 2, 2010 CONFERENCE ROOM #3; 5:00 PM Item a. Grant award for energy upgrades to City facilities; Jack Pace, Community Development Director. b. A bond ordinance for the Valley Communications Center Development Authority; Shawn Hunstock, Finance Director. c. Update on Utility Billing Refunds and Back Billing Policy; Shawn Hunstock, Finance Director. Sales Tax Report; Shawn Hunstock, Finance Director. Distribution: D. Quinn A. Ekberg K. Hougardy D. Robertson Mayor Haggerton S. Lancaster C. O'Flaherty S. Brown B. Giberson D. Haynes Action to be Taken Page a. Forward to 2/8 C.O.W. Pg.1 and 2/16 Regular. b. Forward to 2/8 C.O.W. Pg.19 and 2/16 Regular. c. Information only. d. Information only. Pg.33 e. Discussion. Next Scheduled Meeting: Wednesday, February 17, 2010 Committee Goals: Work together in cooperation with nearby cities to address common problems in the Highway 99 corridor and Military Road. Ensure a commitment to continued human services funding in relation to the cost of living through consistent review of regional, state and federal budgets affecting human services progams and services (also assigned to CAP). Research the viability of sponsoring a City-wide Citizens' Academy (also assigned to CAP). 15 The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206 433 -1800 for assistance. S. Hunstock D. Speck M. Hart R. Still S. Kerslake D. Tomaso K. Kertzman M. Villa T. Kinlow Judge Walden K. Matej B. Arthur M. Miotke C. Parrish G. Labanara K. Narog D. Lincoln S. Kirby N. Olivas S. Norris J. Pace Pg.29 Pg.37 TO: ISSUE BACKGROUND City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety FROM: Steve Lancaster, City Administrator, Chair, Internal Green Team DATE: January 26, 2010 SUBJECT: Acceptance of Energy Grant Award Authorizing the Mayor to sign a grant award from the Washington State Department of Commerce for energy upgrades to City facilities. City Hall and the 6300 Building Parking Lot Lights at Fort Dent Park Lighting Upgrades at the Community Center Jim Haggerton, Mayor In 2007, the City Council unanimously adopted resolution 1649 that outlined the City's commitment to reduce greenhouse gases. The City of Tukwila committed itself to reduce greenhouse gases produced by City operations by 50 percent by 2020. Resolution 1649 also called for a completion of an inventory of greenhouses gases that are produced by City operations. The resulting inventory, completed in 2008, found that the City was responsible for the release of 7,041 tons of CO2. Over 50 percent of the City's CO2 was the result of electrical operation at City buildings, parks, and operation of street lights. The Federal Economic Stimulus Act passed by Congress in 2009 provided a significant amount of funds for energy upgrades to existing buildings. The City's Green Team which includes representatives from all City Departments submitted a grant application for energy upgrades to three project areas: The City has been notified that we have been given preliminary approval to receive $129,500 to complete the energy upgrades. After utilizing leverage and rebates from the City's utility providers (PSE and SCL), the total value of the work will likely be over $200,000. The City is required to put up a match of $10,000 in order to receive the grant. The source of the match fund will be funding in the Mayor's Office that was set aside for green initiatives After the work is completed it is estimated that the City will reduce its electrical consumption by a total of 370,000 kWh and that CO2 emissions from the City will be reduced by 210 tons annually. DISCUSSION The grant award provides an opportunity to reduce general fund expenditures now and in the future. A portion of the grant will be used to fund City staff time to complete the work and to manage the grant. Additionally, once the energy upgrades are in place the City's electrical usage will be reduced which will result in lower utility costs for the City. Staff has estimated that the payback time for the $10,000 grant match will be approximately three years. INFORMATIONAL MEMO Page 2 The energy upgrades completed as part of the grant provide a good first step in reducing the City green house emissions, reducing those produced by City operations by two percent. RECOMMENDATION The Committee is being asked to forward the contract to the February 8, 2010 Committee of the Whole Meeting for consideration and possible approval of the contract at the February 16, 2010 meeting. ATTACHMENTS A. Resolution 1649 B. Grant Application W:12010 InfoMemos\EnergyGrant.doc City of Tukwila Washington Resolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, SUPPORTING THE EFFORTS TO CURB GLOBAL WARMING, SETTING NUMERIC GOALS TO REDUCE MUNICIPAL EMISSIONS, AND CALLING FOR A BASELINE STUDY AND SETTING OF NUMERIC GOALS FOR THE REDUCTION OF GREENHOUSE GASES FROM THE COMMUNITY AS A WHOLE. WHEREAS, international scientific consensus exists that human activity, particularly the release of carbon dioxide, is causing significant global climate change, and WHEREAS, the University of Washington's Joint Institute for the Study of Atmosphere and Oceans projects significant harm to the Pacific Northwest due to changes in weather patterns attributable to global warming, including forest decline, deteriorating air quality, sea level rise and, most alarmingly, disruption of the water cycle on which the region's water, power and agricultural systems depend, and WHEREAS, climate change threatens the quality of life enjoyed by residents of the City of Tukwila and the Pacific Northwest; and WHEREAS, the United States was instrumental in the creation of the Kyoto Protocol, which calls for developed nations to reduce carbon dioxide by 5% from 1990 levels by the year 2012, and WHEREAS, over 169 countries and other governmental entities have ratified the agreement, with the United States being a notable exception, and WHEREAS, as of May 15, 2007, 514 mayors from cities across the nation representing over 65 million Americans have accepted the challenge of Seattle's Mayor Greg Nickels and have signed the U.S Mayors' Climate Protection Agreement, embracing the need to reduce greenhouse gases, and WHEREAS, the City already has in place many programs that reduce greenhouse gases, including the Commute Trip Reduction Program, Tree Retention Requirements, Wetland and Watercourse Protection, Salmon Enhancement Projects, and a City -wide recycling program, and WHEREAS, in addition to reducing carbon dioxide emissions, greenhouse emission reduction strategies offer other tangible benefits, to include reducing the City's fuel usage, reducing power consumption, and streamlining City operations, and WHEREAS, the City recognizes that more can be done to reduce the release of greenhouse gases from City operations and the community as a whole, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The Mayor is authorized to sign the U.S Mayors' Climate Protection Agreement. C and Settings'All Users Desktop \Kelly\MSDATA\Rcsolutions \Global Warming.doc BM:ksn 11/6/2007 Page 1 of 1 A. Municipal emissions of carbon dioxide shall be reduced 50% by the year 2020 B The creation of an "Executive Team" "Team is hereby authorized to study and examine procedures, policies and City operations, identifying methods to reduce the City's carbon dioxide emissions. The Team shall be comprised of representatives from the following Departments. Community Development, Public Works, Administrative Services, Mayor's Office, Fire, and Finance. The Team shall report back to the City Council no later than September 15, 2008 on methods to reduce the City's carbon dioxide emissions. A. The Department of Community Development "The Department working with other City departments, Seattle City Light, Puget Sound Energy, and the Puget Sound Clean Air Agency, shall inventory all greenhouse gas emissions released by the community as a whole for the baseline year of 2006 The Department shall report back to the City Council no later than September 15, 2008 B The Department is directed to identify current development ordinances that contribute to the reduction of greenhouse gases. The Department is further directed to identify those existing ordinances that could be strengthened to assist in the reduction of greenhouse gases. C. The Department is further directed to recommend amendments and updates to the City's Comprehensive Plan to include climate change and sustainability goals as an element within the Plan. D The Department shall solicit input regarding reduction strategies from various stakeholders, including property owners, businesses and residents. Section 4. The City of Tukwila shall take a leading role in South King County to reduce greenhouse gases and to create a more sustainable community The City recognizes that it must lead by example and take the necessary steps to reduce greenhouse emissions created by City operations. The City further acknowledges that it must take necessary actions and steps to protect the earth and global community that all humans occupy Section 5. The City of Tukwila shall re- examine its operations and ordinances on a regular basis to ensure that the City will meet its 2020 goal and continue to be a leading advocate for climate change reduction strategies. PASSED BY THE CITY COUNCIL OF THE CITY O FTUKWILA, WASHINGTON, at a Regular Meeting thereof this day of I v i 6V Q m(i P/` 2007 ATTEST/ AUTHENTICATED Cantu, CIVIC, City Clerk Section 2. Section 3. APPROVED AS TO FORM BY i Office of the City Attorney Attachment A. U.S. Mayors' CIimate Protection Agreement C:\Documents and Scttings\All Users Desktop \Kelly\MSDATA\Resolutions \Global Warming.doc BM:ksn 11/6/2007 Ierna Griffin, Council President Filed with the City Clerk: 0 3 I -O Passed by the City Council._1J- 5 -g) Resolution Number I (p u 9 Page 2 of 2 Energy Efficiency and Conservation Block Grants for Smaller Cities and Counties Application Form 15 PAGE LIMIT -1. Ap Otani nf ©naioa'} Applicant City of Tukwila Organization Contact Brandon J. Miles, Senior Planner Jaimie Reavis, Assistant Planner (Alternate Contact) Address 1 6300 Southcenter Blvd, Suite 100 City 1 Tukwila 1 State 1 WA 1 Zip Code 1 98188 1 County 1 King Phone 206 431 3684 Email bmiles @ci.tukwila.wa.us jreavis@ci.tukwila.wa.us. .ill;orie set.o `.t e:.EYal tai4n= uestio* and the Work Plan Milestones formsr osed=act vi ape budget_fc rt is requiredtfor the. entire application: Evaluatioii(aestiaris by Activity Activity Enerev Efficiency Retrofit of City Facilities Description In 2007, the Tukwila City Council unanimously adopted resolution 1649 that outlined the City's commitment to reduce greenhouse gases (see Attachment C). The City of Tukwila committed itself to reduce greenhouse gases produced by City operations by 50 percent by the year 2020. Resolution 1649 also called for completion of an inventory of greenhouse gases that are produced by City operations. That inventory found that the City was responsible for 7,041 tons of CO2. Over 50 percent of the City's CO2 was the result of electrical operation at City buildings, parks, and operation of street lights. A City of Tukwila CO2 reduction program was created. One project electrical upgrades of City facilities will generate significant returns with minimal expenditure of funds; essentially the low- hanging fruit. The first location will be lighting and electrical upgrades at the City Hall Campus and the second location will be lighting upgrades to exterior parking lights at a regional soccer facility that is dedicated to improving children's lives through soccer and a third location will be exterior lighting upgrades at the Tukwila Community Center. City Hall Campus Liehtine and Electrical Upgrades City of Tukwila offices are primarily located at the City Hall campus, which includes City Hall and the City Hall annex building better known as the 6300 Building. City Hall was constructed in 1979 and the 6300 Building was constructed in 1980. These two buildings combined use over one million kilowatt hours of electricity per year and cost taxpayers a $100,000 in electrical costs. In November of 2008, Capital Lighting Company provided a draft scope of work for electrical upgrades to the City Hall Campus. The scope of work includes: City Hall Building 1. Install 16 occupancy sensors; 2. Retrofit nine two -lamp, two -foot fixtures with lamps and ballasts; 3. Retrofit 265 two -lamp, four -foot fixtures with lamps and ballasts; 4. Retrofit 85 three -lamp, four -foot fixtures with lamps and ballasts; 5. Retrofit 36 three -lamp, four -foot fixtures (dual switch) with lamps and ballasts; 6. Retrofit three, four -lamp, four -foot fixtures in the jail cells with lamps and ballasts; 7. Retrofit 41 two -lamp, 6" u -bend fixtures with u -bend lamps and ballasts; 8. Retrofit 19 three -lamp 3" u -bend fixtures with kit to accept four F17T8 lamps and ballasts; 9. Replace 11 exit signs with LED signs. 6300 Building 1. Retrofit one two -lamp, four -foot fixture with lamps and ballasts; 2. Retrofit two one -lamp, four -foot fixtures with lamps and ballasts; 3. Replace the six -foot fixture in the elevator with a new four -foot fixture; 4. Install 23 occupancy sensors; 5. Replace 4 exit signs with LED signs. The proposed scope of work provided to the City by Capital Lighting Company (see Attachment D) estimates the total cost for upgrades at City Hall to be $28,591.25, and the total cost for upgrades at the 6300 Building to be $3,712.60. These estimates include the anticipated utility rebate amount from Puget Sound Energy. Capital Lighting will assist the City in leveraging an energy rebate from Puget Sound Energy for at least 30% of the cost of the project. If awarded grant funds, the City of Tukwila will request an updated estimate for the work proposed. The City of Tukwila is requesting $35,000 in grant funds to cover the work of the contractor. For all work proposed under this application, the City is also requesting 10 percent of the total grant amount for grant administration, and 10 percent of the total grant amount for project management, to include field review and inspections of the retrofit project to the City Hall campus. Fort Dent Parking Lot Light Fixtures The City of Tukwila identified the need to replace the light fixtures at Fort Dent Park to assist in reduction of CO2 emissions. The City acquired Fort Dent Park in 2003 from King County and entered into a lease with Starfire Sports, which operates one of the premier soccer training complexes in the Country. Starfire Sports is a non profit organization, dedicated to providing a first class soccer training facility for kids. During the spring, summer, and fall, Starfire regularly hosts both youth and adult soccer tournaments. The City of Tukwila and Starfire Sports operate Fort Dent Park jointly. In addition to the soccer training complex, there are regional trails and a public playground at Fort Dent Park. Both the trails and playground are maintained by the City. The City is also responsible for maintaining the parking lot and parking lot lights. Fort Dent Park was originally constructed in the early 1970s and the 47 parking light fixtures are the original metal halide. These lights are inefficient and do not provide the safety light needed in order operate a park dedicated to use by children and their families. The City has been gradually replacing the lights as funding becomes available, and has replaced five of the lights to date. The City proposes to replace the remaining 43 light fixtures with a more energy efficient and effective induction light system, which will reduce energy usage and improve parking lot lighting. The City has an electrical contractor working on providing a lighting study and final quote; initial estimate is approximately $80,000 for the energy efficiency retrofit. An additional 10 percent of the total grant amount is requested for grant administration, and 10 percent of the total grant amount is requested for project management, to include field review and inspections. Tukwila Community Center Parking Lot Light Fixtures The City of Tukwila identified the need to replace the light fixtures at the Tukwila Community Center to assist in reduction of CO2 emissions. The Tukwila Community Center provides a gathering place for South King County residents for a variety of activities. The facility includes a playground, playfields, a skate park, water spray park, gym, fitness room and equipment, and meeting rooms available for community events, weddings and other events. Though it was constructed in the 1990's, there are 21 fixtures which have been identified for retrofit with an induction light system in order to reduce energy use. The City has an electrical contractor working on providing a lighting study and final quote; initial estimate is approximately $40,000 for the energy efficiency retrofit. An additional 10 percent of the total grant amount is requested for grant administration, and 10 percent of the total grant amount is requested for project management, to include field review and inspections. 1. What other funds will you be The Mayor's Office has set aside a "green fund" to using for the activity? Include any provide capital for projects that reduce energy usage and funds from the applicant and other CO2 emissions. $10,000 is budgeted to assist in the partners. energy efficiency retrofit project. The City will also pursue rebates from Puget Sound Energy for the activity. 2. How many jobs will be created or Two jobs will be created by this project, based on the retained by the activity? This will be based on the total amount of funds for the activity, including funds from other sources. 3. How much energy will be saved, or generated by renewable sources under Activity #13, by the activity? 4. Describe your current state of preparation to begin activity tasks. 5. Describe how benefits such as jobs created or retained and energy saved will persist beyond 2012 (the EECBG funding period). For how long and how much of these benefits will persist? total from the EECBG Estimated Expected Benefits Calculator for Activity #5. A total of 371,390 kWh and 210 tons of greenhouse gas emissions will be reduced by this retrofit project, based on the total from the EECBG Estimated Expected Benefits Calculator for Activity #5. In 2006, the City conducted an inventory of greenhouse gases that are produced by City operations. That inventory found that the City was responsible for 7,041 tons of CO2. Over 50 percent of the City's CO2 was the result of electrical operation at City buildings, parks, and street lights. As a result of the inventory, a City of Tukwila CO2 reduction program was created. One project electrical upgrades of City facilities will generate significant returns with minimal expenditure of funds, essentially the low- hanging fruit. The City has also created an internal "green team" that identifies and supports green programs for city operations. As part of the City's green efforts we are working with Capital Lighting and other electrical consultants to produce detailed work plans for lighting upgrades to the City Hall campus and the other City facilities. Energy efficiency retrofits at other City facilities; in particular the Fort Dent/Starfire Complex and the Tukwila Community Center are identified in the City's CO2 Reduction Program. Tukwila is a small city and has a limited budget. The City is committed to making improvements to how it operates so that our businesses and residents are served as efficiently as possible. Every dollar the city spends on our electric bills is one less dollar that can be spent on providing direct services to our city residents and businesses. The proposed project will reduce the City's electrical costs, thereby allowing the City to have more financial flexibility to fund and retain other projects and programs in a period of great financial hardship. Energy savings will be permanent. New energy- saving improvements will be maintained and replaced as needed for the life of the facility, or until such time as additional upgrades or retrofits are necessary. 1 3. Activity °Plan :n Where appropriate include information regarding: Any required design engineering that is complete, or a schedule for completion; Any required permits that are in place and environmental review that is complete, or a schedule for completion. Activity Name: City Hall Campus Lighting and Electrical Upgrades Tasks (1) Work plan itemizing specific lighting replacements, efficiency controls, energy upgrades for City Hall campus (2) Update cost estimate provided by Capital Lighting (3) Prepare Bid Documents if bidding is required; if bidding is not required obtain bids from three contractors for the work. (4) Review contractor's proposals -award contract (5) Contractor completes pre -con with City (6) Contractor to obtain needed permits (7) Contractor begins work at City Hall, work shall be preformed on weekends or after hours. 1 (8) Contractor obtains final electrical inspections from City. (9) Final acceptance of project by City staff (10) Construction project is finaled out (11) Promote project in City's newsletter and acknowledge grant award. Activity Name: Starfire and Tukwila Community Center Parking Light Retro Fit Project Tasks (1) Identify which parking lot lights need to be replaced and upgrades (2) Work with an electrical contractor to analyze light needs which will reduce energy usage and improve safety on the site. (3) Prepare Bid Documents if bidding is required; if bidding is not required obtain estimates from three contractors for the work 1 (4) Review contractor's proposals -award contract 1 (5) Contractor completes pre- construction meeting with City 1 (6) Contractor to obtain needed permits (7) Contractor begins staging on site (8) Contractor begins removing and replacing light fixtures and poles if necessary. Work could also included upgraded electrical services to and within the light pole. Work would be limited to Deadlines Complete November of 2009 (will occur regardless of award of grant) February of 2010 April of 2010 May 2010 May -June 2010 June 2010 September of 2010 October of 2010 November of 2010 December of 2010 Deadlines Complete December of 2009 (will occur regardless of grant award) February of 2010 1 March of 2010 1 April 2010 1 April -May 2010 1 June 2010 July- September of 2010. Monday through Friday in order to accommodate tournament schedule at Park. (9) Contractor obtains final electrical inspections from City. (10) Final acceptance of project by City staff (11) Construction contract is finaled out (12) Promote project in City's newsletter and acknowledge grant award. Optional information to demonstrate the applicant's ability to meet expenditure deadlines. 1 September 2010 1 September 2010 1 October 2010 December of 2010 The City of Tukwila will utilize existing staff to manage and administer any contractual work as well as complete some of the work itself. Tukwila a small city that has construction projects that more closely resemble the construction projects of medium sized cities. The City's Public Works and Parks staff regularly manages multi million dollar projects. Recent projects include the Tukwila International Blvd, phase III improvements that includes road widening, sidewalk construction and other streetscape improvements, intersection upgrades, and underground of utilities; construction of Codiga Park, the city's newest park; completion of the club house for Foster Golf Course in 2004; and completion of an underpass and realignment of S.180` Street between the cities of Renton and Tukwila. 4. _Budge Funding Status Are the sources committed? City Hall and 6300 Buildings, and replacement of outdoor lights at Fort Dent Park and the Tukwila Community Center with energy efficient lighting. Source 1 EECBG Formula Source 2 Source 3 5. Attachments A. Mayor's Letter of Commitment B. Starfire Letter of Support C. Resolution 1649 D. Contractor's Estimate for Work at City Hall and 6300 Building Total Yes X No ❑Yes X No Activity Costs (Please break costs out byactivity. Use more sheets if necessary) Energy Efficiency $129,500 $46,500 PSE $10,000 $186,000 Retrofits to utility rebate Mayor's Green (estimate) Fund September 24, 2009 6200 Southcenter Boulevard Tukwila, Washington 98188 Jim Haggerton, Mayor To Whom It May Concern: City of Tukwila The City of Tukwila recognizes the opportunity the Energy Efficiency and Conservation Block Grant Program (EECBG) offers to our community to provide funding assistance for projects to improve energy efficiency, and reduce energy use and fossil fuel emissions. I support the work proposed under program, and as a member city of the U.S. Conference of Mayors Climate Protection Agreement, understand that these projects will reinforce the city's commitment to reduce climate change impacts. If awarded funding through the EECBG Program, the City of Tukwila is committed to follow all of the EECB contract requirements, including, but not limited to the following: Staff training regarding contract requirements. Buy American requirement Any iron, steel, and manufactured goods used for projects funded under this program must be produced in the United States. Davis -Bacon Act wage rate requirements all laborers and mechanics working on grant funded projects must be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor and the states prevailing wage laws. Quarterly reporting documenting progress of the project, providing an estimate of the number of jobs created and retained, and the amount of energy saved and greenhouse gases reduced. Compliance with the National Environmental Policy Act. I look forward to a positive response. Please let me know if there is any additional information that you need to demonstrate our full commitment to EECBG. Sincerely, Jim Hagg Mayor Phone: 206 433 -1800 City Hall Fax: 206 433 -1833 www.ci.tukwila.wa.us ,,4 tar� September 29, 2009 Washington State Department of Commerce Energy Program PO Box 43173 Olympia, WA 98504 -3173 To Whom It May Concern: Re: Energy Efficiency and Conservation Block Grant Starfire Sports is a Washington State non profit corporation, designated as a 501(c)(3) charitable organization by the IRS. We are operators of a 54 -acre athletic facility at Fort Dent Park in Tukwila, Washington. Our mission is to inspire, encourage and empower youth through participation in sports. Starfire Sports strives to provide world- class, inclusive facilities where all youth are welcome as equal participants while they develop as leaders and responsible citizens in their community. The opportunity that created a home for Starfire Sports occurred in 2003 when an unprecedented public private partnership was struck between the City of Tukwila and Starfire Sports. Fort Dent Park was designated for closure until Tukwila took ownership and signed a 40 year concession agreement with Starfire Sports to construct park improvements and operate athletic programs and other charitable activities at the site. Unfortunately we have had a growing concern with the parking facilities at our complex for several years now. We believe they pose a serious life and safety risk due to outdated and substandard lighting conditions. With our primary clientele comprising youth and families, accidents and injuries after dark due to vehicle pedestrian collisions or even personal assault are a very real concern. We regretfully have a long list of incident reports filed with the Tukwila Police Department regarding vehicle break -ins, theft and vandalism that have occurred within our parking lots after dark. It is our sincere hope that the City of Tukwila will be successful with their Energy Efficiency and Conservation Block Grant Application and that together we can complete this much needed facility improvement at the Starfire Sports Complex. Sincerely, STARFIRE SPORTS Julie ft23 e -L owe General Ma ger Starfire Sports 14800 Starfire Way Tukwila, WA 98188 Phone: 206.431.3232 Fax: 206.431.6811 www.starfiresports.com info ©starfiresports.com 11/10/20n 13:53 4252510293 November 7, 2008 Ms. Carolyn Simons Facilities Technician City of Tukwila 14000 Interurban. Aven le South Tukwila, WA 98168 Capital Lighting Company 287 SW 41'` Street Renton, WA 98057 (425) 251 -0244 (800) 232 -9023 Fax: (425) 251 -0293 Dear Carolyn, Capital Lighting propo: .es to supply the labor and materials for your lighting project at the Tukwila City Hall. Tly t scope of the work includes the materials, labor, and disposal for the following: Install 16 occur alley sensors, Retrofit 9 two-limp, two -foot fixtures with lamps and ballasts, Retrofit 265 two i -lamp, four -foot fixtures with lamps and ballasts, Retrofit 85 thr -lamp, four -foot fixtures with lamps and ballasts, Retrofit 36 thre -lamp, four -foot fixtures (Dual switch) with lamps and ballasts, Retrofit 3 four amp, four -foot fixtures in the jail cells with lamps and ballasts, Retrofit 41 two lamp, 6" u -bend fixtures with u -bend lamps and ballasts Retrofit 19 tire -lamp 3" u -bend fixtures with a kit to accept four F17T8 (two -foot long) lamps anerballasts, Replace 11 exit signs with LED signs, We will install energy rcient ballasts and excellent quality bulbs. We will recycle all the old bulbs and ballasts and ake care of the Puget Sound Energy paperwork for you. Your cost for the abov■ project is: Materials, Lift, Labor, and Disposal $25,722.10 Permit (Estima e) 508.40 Tax 2360.75 Total $28,591.25 Puget Sound El !ergy Rebate (Estimate) ,($14,295.62).- Net Cost $14,295.63 RECEIVED 10- 11-'08 13:31 FROM- 4252510293 CAPITAL LIGHTING PAGE 01/18 City Ball TO- GEORGE LONG SHOP P0017018 November 7, 2008 Ms. Carolyn Simons Facilities Technician City of Tukwila 14000 Interurban Avenue South Tukwila, WA 98168 Dear Carolyn, Capital Lighting proposes to supply the labor and materials for your lighting project at the Tukwila Public Works building at 6300 Southcenter Boulevard. The scope of the work includes the labor and materials to install 23 occupancy sensors Capital Lighting will take care of the Puget Sound Energy paperwork for you. Your cost for the above project is: Sincerely, Materials and Labor $2,469.50 Permit (Estimate) 124.00 Tax 233.42 Subtotal $2,826.92 Puget Sound Energy Rebate (Estimate) 920.00) Net Cost $1.906.92 The above bid is based on the existing electrical being adequate and to code. Should any part of this project not meet these criteria, we will notify you before proceeding with the work in question. All labor and materials have a one year warranty. You would save approximately $508 per year on your electric bill. Please let me know if you have any questions or would like to proceed with this project. Donna Kenney Commercial Sales Cell (206) 450 -0090 Capital Lighting Company 287 SW 41 Street Renton, WA 98057 (425) 251 -0244 (800) 232 -9023 Fax: (425) 251 -0293 Public Works 6300 Southcenter Blvd. Occupancy Sensors Only November 7, 2008 Ms. Carolyn Simons Facilities Technician City of Tukwila 14000 Interurban Avenue South Tukwila, WA 98168 Dear Carolyn, Capital Lighting proposes to supply the labor and materials for your lighting project at the Tukwila Public Works building at 6300 Southcenter Boulevard. The scope of the work includes the materials, labor, and disposal for replacing 4 exit signs with LED signs. Capital Lighting will take care of the Puget Sound Energy paperwork for you. Your cost for the above project is: Capital Lighting Company 287 SW 41 Street Renton, WA 98057 (425) 251 -0244 (800) 232 -9023 Fax: (425) 251 -0293 Materials, Labor, Disposal $388.00 Permit (Estimate) 66.00 Tax 40.86 Subtotal $494.86 Puget Sound Energy Rebate (Estimate) ($200.00) Net Cost $294.86 Public Works 6300 Southcenter Blvd. Exit Signs Only The above bid is based on the existing electrical being adequate and to code. Should any part of this project not meet these criteria, we will notify you before proceeding with the work in question. All labor and materials have a one year warranty. You would save approximately $68 per year on your electric bill. Please let me know if you have any questions or would like to proceed with this project. Sincerely, Donna Kenney Commercial Sales Cell (206) 450 -0090 November 7, 2008 Ms. Carolyn Simons Facilities Technician City of Tukwila 14000 Interurban Avenue South Tukwila, WA 98168 Dear Carolyn, Capital Lighting Company 287 SW 41 Street Renton, WA 98057 (425) 251 -0244 (800) 232 -9023 Fax: (425) 251 -0293 Capital Lighting proposes to supply the labor and materials for your lighting project at the Tukwila Public Works building at 6300 Southcenter Boulevard. The scope of the work includes the materials, labor, and disposal for the following: Retrofit 1 two -lamp, four -foot fixture in the downstairs snack area with lamps and ballasts, Retrofit 2 one -lamp, four -foot fixtures in the elevator with lamps and ballasts, Replace the six -foot fixture in the elevator with a new four -foot fixture. We will install energy efficient ballasts and excellent quality bulbs. We will recycle all the old bulbs and ballasts and take care of the Puget Sound Energy paperwork for you. Your cost for the above project is: Materials, Labor, Disposal $348.55 Tax 32.27 Subtotal $390.82 Puget Sound Energy Rebate (Estimate) ($185.00) Net Cost $205.82 Public Works 6300 Southcenter Blvd. Fluorescents Only The above bid is based on the existing electrical being adequate and to code. Should any part of this project not meet these criteria, we will notify you before proceeding with the work in question. All labor and materials have a one year warranty. You would save approximately $83 per year on your electric bill. Please let me know if you have any questions or would like to proceed with this project. Sincerely, Donna Kenney Commercial Sales Cell (206) 450 -0090 TO: FROM: Shawn Hunstock, Finance Director DATE: January 28, 2010 SUBJECT: Valley Communications Refunding Bond Ordinance ISSUE BACKGROUND DISCUSSION RECOMMENDATION City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee Jim Haggerton, Mayor The Valley Communications (ValleyCom) Board of Directors (Admin Board) has authorized the refunding of its series 2000 bonds. As a member City of ValleyCom, the City Council must approve the refunding by adoption of an ordinance prior to the bond sale. The City of Tukwila and other ValleyCom members created the Valley Communications Center Development Authority (Authority) in April of 2000 with the explicit intent to issue bonds for the construction of an emergency dispatch center. The Authority issued $12,758,000 in bonds and began construction soon thereafter with completion in 2002. Debt service on the bonds is shared equally among the five ValleyCom cities. The portion attributable to the City of Tukwila when the bonds were originally sold was $2,551,600. The purpose of the bond refunding is to capitalize on the relatively low interest rates available in the bond market at this time. When originally sold, the bonds had an average interest rate of 5.30 The average interest rate on the bond refunding is projected to be 2.77 The refunding will result in a savings, net of bond issuance costs, of $389,613. The City of Tukwila's share of that savings is 20 or $77,923. This savings will be realized between now and 2015. The Council is being asked to approve the ordinance providing for repayment of the new refunding bonds, and authorize the Mayor to execute a continuing disclosure agreement. INFORMATIONAL MEMO Page 2 This item is scheduled to be discussed at the February 2, 2010 Finance and Safety Committee meeting, the February 8 Committee of the Whole meeting, and the February 16 Regular meeting. ATTACHMENTS Draft Ordinance Summary of Refunding Results (Projected) W: \2010 InfoMemos \ValleyCommBondRefu nding.docx DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, PLEDGING THE CITY'S FULL FAITH AND CREDIT TOWARD THE PAYMENT OF ITS SHARE OF DEBT SERVICE ON REFUNDING BONDS TO BE ISSUED BY THE VALLEY COMMUNICATIONS CENTER DEVELOPMENT AUTHORITY AND APPROVING CERTAIN MATTERS RELATED THERETO; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, pursuant to Ordinance No. 1912, adopted by the City of Tukwila (the "City on April 3, 2000, and Chapter 39.34 RCW, the Interlocal Cooperation Act, the City entered into the Valley Communications Center Interlocal Agreement effective April 17, 2000 (the Interlocal Agreement with the City of Federal Way, the City of Renton, the City of Auburn, and the City of Kent, Washington (together, the "Member Cities to reorganize a governmental administrative agency known as the Valley Communications Center ("ValleyCom"); and WHEREAS, the purpose of ValleyCom is to provide improved police, fire and medical aid service communications within the boundaries of the existing, established consolidated service area at a minimum cost to the Member Cities, together with such other governmental agencies that have contracted with ValleyCom for communication services; and WHEREAS, in order to address increased growth and to provide necessary services for the Member Cities and other governmental agencies that contract with ValleyCom for communication services, ValleyCom constructed a new dispatch facility known as the Valley Communications Center (the "Facility"); and WHEREAS, financing for the construction, equipping and improvement of the Facility was provided by bonds issued by the Valley Communications Center Development Authority (the "Authority"), a public development authority chartered by the City of Kent, pursuant to RCW 35.21.730 through 35.21.755; and WHEREAS, pursuant to the Interlocal Agreement, each Member City has agreed to contribute to the financing of the costs of the Facility, each Member City paying 20% of the total cost of development, less contributions from grants, other agencies or other sources; and WHEREAS, the Authority issued its Valley Communications Center Development Authority Bonds, 2000 (Valley Communications Center Project in King County, Washington) (the "2000 Bonds dated September 15, 2000, in the original aggregate principal amount of $12,758,000; and WHEREAS, it appears that the 2000 Bonds may now be refunded at lower interest rates through the issuance of refunding bonds of the Authority, thereby yielding savings to the Authority and the Member Cities; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. City Contributions to Bonds. Pursuant to the terms of the Interlocal Agreement, the City hereby irrevocably commits to pay its share, which shall be equal to 20 of the debt service on bonds (the "Bonds issued by the Authority for the purpose of defeasing and refunding all or a portion of the 2000 Bonds. The City recognizes that it is not obligated to pay the share of any other Member City; the City's obligation shall be limited to its 20% allocable share of debt service on such Bonds; all such payments shall be made by the City without regard to the payment or lack thereof by any other jurisdiction; and the City shall be obligated to budget for and pay its 20% allocable share. All payments with respect to the Bonds shall be made to ValleyCom in its capacity as administrator and servicer of the Bonds to be issued by the Authority. The City's obligation to pay its 20% allocable share shall be an irrevocable full W: \Word Processing \Ordinances \Valley Com Bond Refunding.docx SH:ksn 01/29/2010 Page 1 of 2 faith and credit obligation of the City, payable from property taxes levied within the constitutional and statutory authority provided without a vote of the electors of the City on all of the taxable property within the City and other sources of revenues available therefor. The City hereby obligates itself and commits to budget for and pay its 20% allocable share and to set aside and include in its calculation of outstanding non -voted general obligation indebtedness an amount equal to the principal component of its 20% allocable share for so long as any Bonds remain outstanding. Section 2. Compliance with Continuing Disclosure Requirements and Official Statement. To the extent necessary to meet the conditions of paragraph (d)(2) of United States Securities and Exchange Commission Rule 15c2 -12 (the "Rule the Mayor is hereby authorized to execute and deliver a continuing disclosure agreement or certificate in order to assist the underwriter for the Bonds in complying with the Rule. The Mayor is further authorized to ratify and approve the information pertaining to the City and contained in the preliminary and final official statements delivered in connection with the Bonds for purposes of the Rule. Section 3. Allocation for Purposes of Bank Qualification. For purposes of Section 265(b)(3)(C)(iii) of the Internal Revenue Code of 1986, as amended (the "Code the City hereby agrees that the amount of each issue of obligations of the Authority shall be allocated in equal shares among each of the Member Cities. Section 4. Tax Covenant. The City hereby agrees that it shall not: 1. Make any use of the proceeds from the sale of Bonds or any other money or obligations of the Authority or the Member Cities that may be deemed to be proceeds of the Bonds pursuant to Section 148(a) of the Code that will cause the Bonds to be "arbitrage bonds" within the meaning of said Section and said regulations, or 2. Act or fail to act in a manner that will cause the Bonds to be considered obligations not described in Section 103(a) of the Code. Section 5. General Authorization; Prior Acts. A. The Mayor and Finance Director of the City and each of the other appropriate officers, agents and representatives of the City are each hereby authorized and directed to take such steps, to do such other acts and things, and to execute such letters, certificates, agreements, papers, financing statements, assignments or instruments as in their judgment may be necessary, appropriate or desirable to carry out the terms and provisions of, and complete the transactions contemplated by, this ordinance. B. All acts taken pursuant to the authority of this ordinance but prior to its effective date are hereby ratified and confirmed. Section 6. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 7. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting there of this day of 2010. ATTEST/ AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney W: \Word Processing Ordinances \Valley Com Bond Refunding.docx SH:ksn 01/29/2010 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2 SUMMARY OF REFUNDING RESULTS Valley Communications Center Development Authority Refunding of 2000 General Obligation Bonds Assumes Insured BQ Interest Rates Dated Date 03/01/2010 Delivery Date 03/01/2010 Arbitrage yield 2.116664% Escrow yield 0.239190% Bond Par Amount 5,585,000.00 True Interest Cost 2.340253% Net Interest Cost 2.189691% Average Coupon 2.766841% Average Life 3.718 Par amount of refunded bonds 5,345,000.00 Average coupon of refunded bonds 5.511594% Average life of refunded bonds 3.843 PV of prior debt to 03/01/2010 2.116664% 6,078,976.59 Net PV Savings 371,314.25 Percentage savings of refunded bonds 6.946946% Percentage savings of refunding bonds 6.648420% Dec 14, 2009 12:37 pm Prepared by Seattle- Northwest Securities Corp. (k: \Valley Communications :VALLCOM- REFOO,REF00) Page 1 Date Net PV Savings SAVINGS Valley Communications Center Development Authority Refunding of 2000 General Obligation Bonds Assumes Insured BQ Interest Rates Prior Refunding Debt Service Debt Service Savings Present Value Annual to 03/01/2010 Savings 2.1166639% 06/01/2010 144,200.00 36,300.00 107,900.00 107,333.52 12/01/2010 144,200.00 202,600.00 58,400.00 49,500.00 57,485.02 06/01/2011 144,200.00 71,300.00 72,900.00 71,006.35 12/01/2011 1,109,200.00 1,116,300.00 7,100.00 65,800.00 6,843.15 06/01/2012 120,075.00 60,850.00 59,225.00 56,484.66 12/01/2012 1,130,075.00 1,120,850.00 9,225.00 68,450.00 8,706.02 06/01/2013 94,825.00 50,250.00 44,575.00 41,626.75 12/01/2013 1,194,825.00 1,170,250.00 24,575.00 69,150.00 22,709.24 06/01/2014 65,262.50 33,450.00 31,812.50 29,089.40 12/01/2014 1,170,262.50 1,133,450.00 36,812.50 68,625.00 33,308.89 06/01/2015 33,493.75 16,950.00 16,543.75 14,812.44 12/01/2015 1,198,493.75 1,146,950.00 51,543.75 68,087.50 45,666.38 6,549,112.50 6,159,500.00 389,612.50 389,612.50 366,415.49 Savings Summary PV of savings from cash flow Plus: Refunding funds on hand 366,415.49 4,898.76 371,314.25 Dec 14, 2009 12:37 pm Prepared by Seattle Northwest Securities Corp. (k: \Valley Communications :VALLCOM- REFOO,REF00) Page 2 Sources: Uses: Refunding Escrow Deposits: Cash Deposit SLGS Purchases SOURCES AND USES OF FUNDS Valley Communications Center Development Authority Refunding of 2000 General Obligation Bonds Assumes Insured BQ Interest Rates Dated Date 03/01/2010 Delivery Date 03/01/2010 Bond Proceeds: Par Amount 5,585,000.00 Premium 164,518.10 Delivery Date Expenses: Cost of Issuance Underwriter's Discount Bond Insurance (Est. 0.60 5,749,518.10 1.34 5,623,481.00 5,623,482.34 39,500.00 44,680.00 36,957.00 121,137.00 Other Uses of Funds: Additional Proceeds 4,898.76 5,749,518.10 Dec 14, 2009 12:37 pm Prepared by Seattle Northwest Securities Corp. (k: \Valley Conmiunications :VALLCOM- REFOO,REF00) Page 3 Bond Component Serial Bonds: Purchase Price Accrued Interest BOND PRICING Valley Communications Center Development Authority Refunding of 2000 General Obligation Bonds Assumes Insured BQ Interest Rates Maturity Premium Date Amount Rate Yield Price Discount) 12/01/2010 130,000 2.000% 0.880% 100.834 1,084.20 12/01/2011 1,045,000 2.000% 1.160% 101.450 15,152.50 12/01/2012 1,060,000 2.000% 1.390% 101.639 17,373.40 12/01/2013 1,120,000 3.000% 1.660% 104.850 54,320.00 12/01/2014 1,100,000 3.000% 2.060% 104.230 46,530.00 12/01/2015 1,130,000 3.000% 2.500% 102.660 30,058.00 5,585,000 164,518.10 Dated Date 03/01/2010 Delivery Date 03/01/2010 First Coupon 06/01/2010 Par Amount 5,585,000.00 Premium 164,518.10 Production Underwriter's Discount Net Proceeds 5,704,838.10 5, 749, 518.10 102.945714% 44,680.00 0.800000% 5,704,838.10 102.145714% Dec 14, 2009 12:37 pm Prepared by Seattle- Northwest Securities Corp. (k: \Valley Communications :VALLCOM- REFOO,REF00) Page 4 Period Ending Valley Communications Center Development Authority Refunding of 2000 General Obligation Bonds Assumes Insured BQ Interest Rates Principal BOND DEBT SERVICE Dated Date 03/01/2010 Delivery Date 03/01/2010 Annual Debt Debt Coupon Interest Service Service 06/01/2010 36,300 36,300 12/01/2010 130,000 2.000% 72,600 202,600 238,900 06/01/2011 71,300 71,300 12/01/2011 1,045,000 2.000% 71,300 1,116,300 1,187,600 06/01/2012 60,850 60,850 12/01/2012 1,060,000 2.000% 60,850 1,120,850 1,181,700 06/01/2013 50,250 50,250 12/01/2013 1,120,000 3.000% 50,250 1,170,250 1,220,500 06/01/2014 33,450 33,450 12/01/2014 1,100,000 3.000% 33,450 1,133,450 1,166,900 06/01/2015 16,950 16,950 12/01/2015 1,130,000 3.000% 16,950 1,146,950 1,163,900 5,585,000 574,500 6,159,500 6,159,500 Dec 14, 2009 12:37 pm Prepared by Seattle- Northwest Securities Corp. (k: \Valley Conununications :VALLCOM- REFOO,REF00) Page 5 TO: DISCUSSION City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton and Finance and Safety Committee Jim Haggerton, Mayor FROM: Peggy McCarthy, Deputy Finance Director DATE: January 27, 2010 SUBJECT: Utility Billing Refunds and Back Billing Policy ISSUE When a customer is overcharged or undercharged for utility services how far back should the refund or back bill extend? BACKGROUND Billing corrections are necessary for many reasons. Meters can become stuck preventing accurate recording of consumption; fire line services can unknowingly be charged to the wrong customer or the charges may be for incorrect line sizes. Under previous Finance Directors Alan Doerschel and Kevin Fuhrer, the policy limited back bills and refunds to 12 billing periods from the claim or discovery date or to the point of ownership change, whichever occurred first. For comparison purposes, the City of Auburn's policy provides for a 36 month adjustment period. The policy reads as follows, "In the event of a meter being out of order and failing to register properly, the consumer shall be back charged or refunded the difference between the billing volume they were charged for and the average volume of monthly consumption as shown by the meter when the meter was in proper working order as determined by the city. The maximum period of billing adjustment is three years." Although the policy is not required to mirror the statute of limitation laws, these laws may influence policy decisions and therefore are briefly discussed below. The statutes of limitations, which are set out in chapter 4.16 RCW, do not expressly address utility accounts over- or undercharging. However, the state court of appeals in Western Lumber v. Aberdeen, 10 Wn. App. 325 (1973), applied the statute of limitations for fraud in RCW 4.16.080(4), which is three years, to an overcharge situation created by having two water meters on the water line serving the business. Upon discovery of the situation, the city refunded the business for overcharges dating back three years, but not more. The business sued. The court of appeals concluded that the facts of the case triggered application of the three -year statute of limitations set out in RCW 4.16.080(4), regarding action for relief on the ground of fraud, because the term "fraud" encompasses innocent misrepresentations of fact or honest mistakes. The three -year limitations period does not begin to run until discovery by the aggrieved party of the facts constituting the fraud. In other words, the customer has three years to bring suit after discovery of the error and is entitled to seek reimbursement of all overcharges INFORMATIONAL MEMO Page 2 that can be proven regardless of how far back in time they reach. If the customer fails to bring a lawsuit within three years of discovering the error, then the customer is limited to recovering overcharges incurred in the past three years. Although the Western Lumber decision has not been overturned and is presumably still good law for an overcharge situation, a more recently enacted six -year limitations period may apply to an undercharge situation because amounts owed to a city arguably meet the definition of an "account receivable." RCW 4.16.040 provides for a six -year statute of limitations for various actions, including an action upon an account receivable. As amended effective July 22, 2007, RCW 4.16.040(2) provides: An action upon account receivable. For purposes of this section, an account receivable is any obligation for payment incurred in the ordinary course of the claimant's business or profession, whether arising from one or more transactions and whether or not earned by performance. It appears that the Legislature amended this provision in response to the Washington Supreme Court's decision in Tingey v. Haisch, 159 Wn.2d 652, 665 (2007), which concluded, in relevant part, that the plain meaning of "account receivable" as used in RCW 4.16.040(2) is "an amount due a business on account from a customer who has bought merchandise or received services." Thus, when a customer underpays for utility services provided by the City, an "account receivable" situation is created that would appear to be subject to the six -year limitations period under RCW 4.16.040(2). Although a three -year limitations period seems to apply to overcharge /refund situations whereas a six -year limitations period seems to apply to undercharge /back bill situations, the period for refund and back bill should be a length that would not cause undue hardship for the customer in the case of back bill, or the City in the case of a refund. The policy should be easy to apply without need for excessive record keeping, research or analysis. For consistency's sake and ease of administration, the refund period should be the same as the back bill period to achieve parity between the customer and the City. A three year period seems to satisfy these criteria and is therefore the suggested refund back bill period. RECOMMENDATION Information only. ATTACHMENTS Draft Utility Billing Refunds and Back Bill Policy Subject: UTILITY BILLING REFUNDS AND BACK BILLS 1.0 PURPOSE: To establish policy for utility billing refunds and back bills. 2.0 ORGANIZATIONS AFFECTED: Finance department. 3.0 REFERENCES: Finance Safety Information Memo 4.0 POLICY: 5.0 DEFINITIONS: N/A 6.0 PROCEDURE: POLICY AND PROCEDURE Index: FINANCE Number: Effective Date: Supersedes: Page 1 of 1 Staff Contact: Date: Approved by: Immediately Finance Director For a refund to be issued, the City must receive from the customer written notice describing the circumstances and rational behind the claim. If the City determines a refund is due, the refund period will begin with the billing period immediately preceding the date the written notification is received and extend back 36 months, or to the date of ownership change if this occurs first. If an underbilling is discovered, the customer will be back billed for a maximum period of 36 service months starting with the billing period immediately preceding the date the error is discovered and extending back 36 months, or to the date of ownership change if this occurs first. The Finance Utility Billing staff will research all customer claims using information and data maintained by the Finance, Water, and Sewer departments to determine the validity, extent and amount of the error. If an overcharge claim is determined to be valid, the Finance staff will notify the customer in writing that an adjustment will be made to the account. At the discretion of the Finance staff and based on the complexity of the refund, additional supporting information will be provided to the customer. If a customer has been undercharged, the Finance staff will send the customer a back bill that explains the circumstances and the basis for the bill. Upon the customer's request, additional supporting information will be provided. If the back bill equals or exceeds $500, arrangements for payment may be made with the Finance Director. TO: FROM: DATE: SUBJECT: Schedule I Mitigation Received City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee Shawn Hunstock, Finance Director January 27, 2010 Sales Tax Revenue for November 2009 Sales Receipt 2008 2009 2009 Month Month Actual Estimated Actual Jan Mar 1,347 1,403 1,172 Feb Apr 1,357 1,397 1,051 Mar May 1,601 1,654 1,146 Apr June 1,365 1,497 1,191 May July 1,635 1,560 1,082 June Aug 1,646 1,757 1,217 July Sept 1,535 1,661 1,473 Aug Oct 1,555 1,647 1,118 Sept Nov 1,426 1,685 1,110 Oct Dec 1,298 1,521 1,032 Nov Jan10 1,265 1,589 1,140 Dec Feb10 1,723 2,175 Totals 17,753 19,546 12,732 1,589 14,321 Increase /(Decrease) Month YTD (231) (346) (508) (306) (478) (540) (188) (529) (575) (489) (449) (231) (577) (1,085) (1,391) (1,869) (2,409) (2,597) (3,126) (3,701) (4,190) (4,639) in 1,000's %Increase /(Decrease) Month YTD 16.46% 24.77% -30.71 20.44% 30.64% 30.73% 11.32% 32.12% 34.12% 32.15% 28.26% 0.00% -20.61 24.36% 23.37% 24.88% 25.99% 23.76% 24.86% 25.95% 26.55% -26.71% 82.44% of Budget Incl. Mitigation Jim Haggerton, Mayor Sales tax collections showed the fifteenth consecutive decrease in November compared to the same period in the prior year. For 2009, collections were less than both budget and the same month in the prior year. Actual receipts for November 2009 were $449,000 less than budget, and $125,000 less than the same period last year. We are now down 26.71% for the year compared to budget, and 20.57% compared to the same period last year. The chart above also includes the mitigation payment we will receive at the end of December for the third quarter of 2009. Including the mitigation payment, we are currently at 82.44% of budget for the year to date. The mitigation payment we will receive on December 31 is $311,528.15. This is a 42.4% increase from the $218,797.89 we received for the same quarter last year. Schedule II shows the year -to -date sales tax from the top ten industry classifications. As this schedule indicates, the trend is flat or down for all of the classifications. INFORMATIONAL MEMO Page 2 Schedule 11 Group Name 452* General Merchandise Stores 448* Clothing and Accessories 423* Wholesale Trade, Durable Goods 722* Food Services, Drinking Places 443* Electronics and Appliances 441* Motor Vehicle and Parts Dealer 451* Sporting Goods, Hobby, Books 444* Building Material and Garden 453* Miscellaneous Store Retailers 721* Accommodation Mitigated NAICS Code As you can see there are large variances from last year for the same time period. For instance, sales tax for Miscellaneous Store Retailers is down by 31.90 Motor Vehicle and Parts Dealer is down by 30.59 and Wholesale Trade and Durable Goods is down by 30.29 As you can see from Schedule II, all of the top ten merchant categories have declined versus prior year, and all ten industry classification codes are ones for which we receive streamlined sales tax mitigation. Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected through November. Schedule III Group Name 236 Construction of Buildings 323* Printing and Related Support 334* Computer and Electronic Produc 442* Furniture and Home Furnishings 314 Textile Product Mills 238 Specialty Trade Contractors 512 Motion Picture, Sound Record 453* Miscellaneous Store Retailers 441 Motor Vehicle and Parts Dealer 561 Administrative and Support Svc Mitigated NAICS Code W: \FIN Projects \Sales Tax Information \Sales Tax Files from Shawn120091Info Memo Sales Tax 012610.docx YTD YTD Dollar Current Prior Diff. Diff. 1,763,485 1,968,140 (204,655) 10.40% 1,733,349 1,848,767 (115,418) -6.24% 1,185,088 1,700,092 (515,004) 30.29% 1,174,027 1,205,944 (31,917) -2.65% 824,186 931,153 (106,967) 11.49% 633,512 912,703 (279,191) 30.59% 498,173 558,829 (60,656) 10.85% 470,491 585,617 (115,126) 19.66% 443,886 651,777 (207,892) 31.90% 423,389 510,510 (87,121) 17.07% YTD Current 386,100 53,293 17,761 311,667 11,615 312,544 27,773 443,886 633,512 102,197 YTD Dollar Prior Diff. 1,238,064 (851,964) 137,909 (84,616) 41,114 (23, 353) 587,159 (275,492) 21,522 (9,906) 469,315 (156,771) 40,818 (13,045) 651,777 (207,892) 912,703 (279,191) 147,092 (44,895) 0 /0 Diff. -68.81 61.36% 56.80% 46.92% 46.03% 33.40% 31.96% 31.90% 30.59% -30.52% Attached is a Sales Tax Summary comparing year -to -date 2009 vs. 2008 by major NAICS codes. Also included is a comparison of total receipts year -to -date for the last four years. Please let me know if you have any comments or questions. Thank you. NAICS 236 237 238 CONSTRUCTION Construction of Buildings Heavy Civil Construction Specialty Trade Contractors TOTAL CONSTRUCTION TRANSPORTATION 8. WAREHOUSING 481 Air Transportation 482 Rail Transportation 484 Truck Transportation 485 Transit and Ground Passengers 488 Transportation Support 491 Postal Services 492 Couriers Messengers I 493* Warehousing Storage TOTAL TRANSP WHSING Sales Tax Mitigation NAICS Codes 1 01/27/2010 08 TOTAL 1,302,567 130,624 530,490 1,963,680 Overall Construction Change from Previous Year MANUFACTURING 311 Food Manufacturing 312 Beverage Tobacco Products 313 Textile Mills 314 Textile Product Mills 315 Apparel Manufacturing 316 Leather Allied Products 321* Wood Product Manufacturing 322* Paper Manufacturing 323* Printing Related Support 324 Petroleum Coal Products 325 Chemical Manufacturing 326 Plastic Rubber Products 327' Nonmetallic Mineral Products 331 Primary Metal Manufacturing 332 Fabricated Metal Mfg Products 333 Machinery Manufacturing 334* Computer Electronic Products 335 Electric Equipment, Appliances 336 Transportation Equipment Mfg 337* Fumiture Related Products 339" Miscellaneous Manufacturing TOTAL MANUFACTURING 520,315 Overall Manufacturing Change from Previous Year 08 TOTAL 0 1,935 965 11,502 28,728 88 476 781 44,475 Overall Transportation Change from Previous Year WHOLESALE TRADE 08 TOTAL 423* Whls Trade Durable Goods 1,777,808 424* Whls Trade Nondurable Goods 113,096 425' Wholesale Electronic Markets 2,805 WHOLESALE TRADE TOTAL 1,893,709 Overall Wholesale Change from Previous Year SALES TAX SUMMARY November 2009 (Received in January 2010) YID 08 YTD 09 YTD %Diff 1,238,064 386,100 -68.8% 115,675 84,860 -26.6% 469,315 312,544 33.4% 1,823,054 783,504 ($1,039,549) YTD 08 TOTAL 08 YTD 09 YTD Diff 4,997 4,621 1,055 -77.2% 2,328 1,952 2,725 39.6% 1,050 59 207 250.4% 22,660 21,522 11,615 -46.0% 215 215 46 -78.5% 9 5 4 25.7% 9,515 7,487 2.555 -65.9% 21,545 19,916 18,239 -8.4% 143.009 137,909 53,293 -61.4% 9,630 8,918 7,141 -19.9% 8,068 7,593 5,848 -23.0% 4,085 4,006 3,794 -5.3% 5,242 4,863 2,119 -56.4% 52 52 529 913.0% 6,310 5,918 3,215 .45.7% -8,777 -9,072 5,391 159.4% 44,162 41,114 17.761 -56.8% 895 664 130 -80.4% 191.525 147,590 111,302 -24.6% 31,384 31,093 7,947 -74.4% 22,411 19,135 9,475 -50.5% 455,560 264,391 (5191,168) YTD 08 YTD 09 YTD Diff 0 0 0.0% 1,801 923 -48.8% 450 2,770 515.2% 10,559 10,036 -5.0% 25,846 18,428 -28.7% 88 0 -100.0% 469 119 -74.6% 742 982 32.4% 39,955 33,258 (56,697) YTD 08 YTD 09 YTD Diff 1,700,092 1,185,088 -30.3% 102,397 93,164 -9.0% 2,610 1,937 -25.8% 1,805,098 1,280,189 ($524,909) -57.0% -42.0% -29.1% NAICS I 441' I 447* AUTOMOTIVE Motor Vehicle Parts Dealer Gasoline Stations TOTAL AUTOMOTIVE NAICS RETAIL TRADE 08 TOTAL 442' Furniture Home Furnishings 621,785 443' Electronics Appliances 1,077,238 444' Building Material Garden 619,645 445' Food Beverage Stores 88,317 446' Health Personal Care 146,841 448* Clothing Accessories 2,101,593 451' Sporting Goods, Hobby, Books 644,522 452' General Merchandise Stores 2,231,745 453' Miscellaneous Store Retailers 721,034 454' Nonstore Retailers 116,347 TOTAL RETAIL TRADE 8,369,066 Overall General Retail Change from Previous Year Page 1 SERVICES 51X Information 52X Finance Insurance 53X Real Estate, Rental, Leasing 541 Professional, Scientific, Tech 551 Company Management 56X Admin, Supp, Remed Svcs 611 Educational Services 62X Health Care Social Assistance 71X Arts Entertainment 72X' Accommodation Food Svcs 81X Other Services 92X Public Administration TOTAL SERVICES 08 TOTAL 993,146 73,034 1,066,181 Overall Automotive Change from Previous Year 08 TOTAL 570,706 75,585 403,851 338,302 1,902 167,119 12,727 109,308 106,515 1,858,292 192,450 843 3,837,599 Overall Services Change from Previous Year MISCELLANEOUS 08 TOTAL 000 Unknown 1,147 111 -115 Agriculture, Forestry, Fishing 1,095 211 -221 Mining Utilities 19,574 999 Unclassifiable Establishments 35,837 -16.8% MISCELLANEOUS TOTAL 57,652 Overall Miscellaneous Change from Previous Year 08 TOTAL GRAND TOTALS $17,752,678 Grand Total Change from Previous Year YTD OB YTD 09 YTD Diff 912,703 633,512 -30.6% 68,072 57,168 -16.0% 980,775 690,680 0290,095) -29.6% 08 YTD 09 YTD Diff 587,159 311,667 -46.9% 931,153 824,186 -11.5% 585.617 470,491 -19.7% 81,103 79,253 -2.3% 125,479 161,952 29.1% 1,848,767 1,733,349 -6.2% 558,829 498,173 -10.9% 1,968,140 1,763,485 -10.4% 651,777 443,886 -31.9% 100,605 188,523 87.4% 7,438,629 6,474,964 (5963,665) -13.0% YTD 08 YTD 09 YTD Diff 514,835 471,858 -8.3% 55,791 48,228 -13.6% 374,187 377,469 0.9% 232,862 173,312 -25.6% 1,882 875 -53.5% 153,158 109,076 -28.8% 10,642 42,615 300.5% 98,236 76,373 -22.3% 98,768 86,550 -12.4% 1,716,454 1,597.416 -6.9% I 173,559 165,590 -4.6% 397 31,045 7727.3% 3,430,772 3,180,407 (5250,365) 7.3% 08 YTD 878 1,063 19,299 34,966 56,206 08 YTD 816,030,049 YID 09 YTD Diff 397 -54.8% 144 -86.5% 13,978 -27.6% 10,778 -69.2 25,297 (530,910) -55.0% YTD 09 YTD Diff 812,732,691 (03,297,358) 20.57% TUK Sales Tax Rpl 20091 I .Ism 2009 2008 L al a) 2007 2006 Four Year Comparison $6,000,000 $12,000,000 Taxes Collected Year to Date $15,691,931 $18,000,000 TO: FROM: Dennis Robertson, Council President BY: Kimberly Matej, Legislative Analyst CC: Steve Lancaster, City Administrator Shawn Hunstock, Finance Director DATE: January 19, 2010 SUBJECT: Pre Retreat Budget Review MEMORANDUM City of Tukwila City Council Finance Safety Committee Schedule REVISED 1/27/10 See Committee Minutes dated 1/20/10 As Council President, I will be working with the Finance Director and Legislative Analyst to prepare a draft agenda for the 2010 Annual Council Retreat. I anticipate having a draft agenda to the Council sometime during the last week of January/first week of February, and that the majority of the Retreat will focus on discussion of the budget. Per Council discussion at the January 11 COW, Council Committees will conduct detailed review of the 2009 -10 Biennial Budget document in preparation for the 2010 Annual Council Retreat. Council Committees have each been assigned portions of the budget to review over the course of three consecutive meetings. The review schedule for the Finance Safety Committee is included at the end of this memo. The Committee can choose to move at a faster pace, if desired by its members. The Committee review process, as discussed at the January 11 COW, is outlined below. It is intended to assist the full Council in considering potential program alternatives, expense /capital reductions and /or new revenue opportunities in response to the severity of the City's budget crisis. Committee Review Process Utilizing the 2009 -10 Biennial Budget document, review the pages assigned to the Committee as outlined below. Committee member review, understanding and familiarity of the assigned budget items should be thorough enough that the three Committee members feel comfortable serving as the Council experts for discussion of the appropriate items during the Retreat. As mentioned above, it is the intent of the Committee review process to prepare Committee members with adequate knowledge of assigned sections so that they can assist the rest of the Council in a meaningful discussion of the items at the Retreat. Department directors and managers will be available during Committee meetings, as a resource, to answer questions regarding budget items. Discussions at the Committee meetings should be a Committee -led process, not staff -led. Specifics on budget items, as discussed in the Committee, will not be documented in the Committee minutes. Each Committee member should keep ample individual notes that will aid you in discussing items at the Retreat. Committees are not being asked to make any recommendations regarding the budget during the Committee meetings. Since the strength of the Council is the experience and knowledge of all seven Councilmembers, policy -level discussions regarding budget issues are best addressed with the full Council and Mayor working together. Finance Safety: Pre Retreat Budget Review page 2 Tuesday; February 2, 2010 Finance Insurance Fund Contingency Fund Contributions /Fund Balance Insurance Fund LEOFF 1 Firemen's Pension Fund Fire Fire Equipment Reserve Tuesday, February 17, 2010 Police Finance Safety Committee Review Schedule BUDGET PAGES 64 -65 185 151 144 186 187 110 -123 152 BUDGET PAGES 94 -106