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HomeMy WebLinkAboutCOW 2004-04-12 Item 4A - Budget - Additional Staffing Needs for Tukwila Valley South Annexation for $270,000 Meeting Date Prepared by Mayor's review Council review 04/12/04 JM~ ~ ~7~/r' ~ , (~. CAS Number: Ref. 04-046 ] Original Agenda Date: April 12, 2004 Agenda Item Title: Contract Assistance for Tukwila Valley South Annexation Original Sponsor: Council Adrnin. Public Works Timeline: Sponsor's Summary: The Segale family has proposed annexation of approximately 250 acres within the Tukwila Valley South (TVS) area. Neither DCD nor Public Works have the resources to adequately manage such a significant endeavor. Propose additional staff to meet the requirements. Recommendations: Sponsor: Approve staffing outlined. Committee: Forward to COW and then on to Regular for approval of staffing. Administration: Same as Sponsor. Cost Impact (if known): $270,000.00 Fund Source (if known): General Fund $175,000 and CIP Funds $95,000 Meeting .Date Action 04-05-04 Council discussion. Consensus existed to forward the item to 4/12/04 for additional information from staff. If all questions are addressed dd~ing the C.O.W. meeting, Council agreed to forward the item to the Special meeting which will immediately follow the C.O.W. Meeting Date Attachments 04/12/04 Mere, o from Mayor dated.gpr±l 8, 2004 Finance and Safety Committee Meeting Minutes from April 5, 2004 CITY OF TUKWILA INTER-OFFICE MEMO TO: Mayor Mullet Finance & Safety Committee FROM: Steve Lancaster Jim Morrow SUBJECT: Contract Assistance for TVS Annexation DATE: April 8, 2004 SUMMARY We have previously spoken about the need for additional staff resources within DCD and Public Works related to the proposed Tukwila Valley South annexation. Our specific proposal for meeting this need is to: 1. Retain a Project Manager on a one-year contract (with the possibility of extension) to coordinate the DCD workload. 2. Assign Ryan Larson on a half-time basis to coordinate the PW workload. 3. Transfer Ryan's remaining project management workload (Cascade View Drainage Project, Small Drainage Projects) to Mike Ronda (currently a contract employee). 4. Retain an additional Project Inspector to assist Mike Ronda with the increased construction inspection workload. 5. Retain the services of an engineering firm to address the transportation, water and sewer issues association with the infrastructure needed to support the annexation. Funding Sources General Fund Annual 2004 Costs 2005 Ending Fund CIP Project Costs (May to Dec.) Costs Balance Funds 1. DCD Project Manager $100,000 $ 60,000 $100,000 $160,000 3. PW Mike Ronda 30,000 20,000 30,000 $ 50,000 4. Add'l Project Inspector 65,000 38,000 65,000 103,000 5. Engineering Firm.* 75,000 10,000 75,000 85,000 ~ Total $ 270,000 $128,000 $ 270,000 $ 245,000 $153,000 $ 398,000 $ 398,000 No. 5 - Engineering Firm will be on an "on-call" basis and only pay for requested tasks. Costs are a worst case scenario. These costs are not budgeted for 2004, and so would come out of the ending fund balance. Page I of 4 BACKGROUND The Segale family has proposed annexation of approximately 250 acres within the Tukwila Valley South (TVS) area. Associated with the annexation, they have also proposed: · Adoption of a "pre-annexation agreement." · Adoption of a "Master Plan" for the TVS area. · Preparation of an Environmental Impact Statement. · Amendments to the Comprehensive Plan and development regulations. · Adoption of a "development agreement." These documents and agreements will guide the long-term development of approximately 500 acres. They will have significant implications for land use, environmental protection, infrastructure development and the City's fmancial health. It is imperative that they accurately reflect the needs of the property owner as will as those of the community at large. As we discussed during the 2003 budget process, neither DCD nor Public Works have the resources to adequately manage such a significant endeavor, in light of other important priorities (Mall expansion, GMA update, TUC Plan, Link unclassified use permit, transportation plan, CIP execution, etc.) PROPOSAL 1. Retain a Proiect Manager on a one-year contract (with possibilit3, of extension if needed) to coordinate the DCD workload. The Project Manager would coordinate the City's review and consideration of the TVS annexation. S/he would provide support to a Project Team comprising the City Administrator, Community Development Director, City Attorney, Public Works Director and Finance Director. The Project Manager would oversee the preparation of the Master Plan, the Environmental Impact Statement, Development Regulations, and a Development Agreement. The Project Manager would advise the Project Team concerning land use, environmental, infrastructure, financial and other issues, highlighting and evaluating policy issues requiring City Council decisions. Depending upon qualifications and experience, the Project Manager would: · Serve ~s the primary staff liaison to the property owner's consultant team. · Monitor work of consultants to ensure the development of objective, accurate, complete and well-written information for decision-makers. · Review proposals relating to land use policy, development regulations, infrastructure financing and related issues, and advises decision-makers. · Coordinate inter-departmental review of project-related information and recommendations. Page 2 of 4 · Coordinate the City's project-related activities and decisions with other governmental ageneias. · Identify and evaluate policy and implementation options, and draft issue papers, staff reports and recommendations for consideration by decision-makers. · Make presentations to decision-makers and other groups. It is estimated that it will cost approximately $100,000 per year to hire an experienced project manager. 2. Assign Ryan Larson on a half-time basis to coordinate the Public Works workload. Ryan Larson is knowledgeable of the annexation proposal and would be able to provide immediate value to the project. Because surface water issues will be a major component of the annexation plan, Ryan will be able to effectively provide input and advice. In order to assign Ryan to the project, his project management workload (Cascade View Drainage Project Design and Construction, Surface Water Small Drainage Design and Construction) will have to be reassigned. 3. Transfer Ryan's remaining project management workload to Mike Ronda (currently a contract employee). Mike Ronda has proven to be an invaluable asset. He provided engineering and construction management services for the S. 180th Street Grade Separation Project. He currently is supervising the Interurban Bridge Widening and Trail Bridge Project. His engineering skill and management capability, as well as being a registered professional engineer, has been tested and proven many times. His talent would transfer well to the Cascade View Drainage Project (Design and Construction) and the City's Small Drainage Project. It is recommended that Mike's salary and benefits be increased to the same level as that paid to the Golf Clubhouse Project Manager because Mike's role and responsibilities are being significantly increased. The additional costs would be approximately $30,000 per year and would be paid by the Cascade View Drainage Project. That project currently has budgeted $620,000 for construction management and construction engineering services. Expanding Mike's workload will decrease the services and associated costs required of the construction management consultant. Because there is a 68% mark-up placed on salary, material, and service costs, it has been estimated that the City can reduce the expected construction management budget by $50,000 because the consultant will not need to provide a full-time construction manager. It should be noted that the need for an outside construction management consultant will still be required, but at a reduced scope of work. 4. Retain an additional Project Inspector to assist Mike Ronda with the increased construction inspection workload. A portion of each major CIP project's budget includes the cost of an outside fn'm to perform construction management functions, including construction inspection. These services come at a premium because of consultant mark ups and company overhead expenses. The Cascade View Drainage Project budget (funded by a Public Works Trust Fund Loan) includes Page 3 of 4 construction management services because the Public Works Department does not have sufficient staff to perform these fuhctions. If an additional contract construction inspector were to be hired, at an added expense of $65,000 per year, and placed under Mike Ronda's supervision, then the City could reduce the number of inspectors needed by the consultant. It should be noted that the need for an outside construction management consultant will still be required, but at a reduced scope of work. The need for an additional inspector would not be required until construction of the Cascade View Drainage Project begins in late 2004 or early 2005. Summary of PW Cost & Savings Cascade View Drainage has budgeted $620,000 for construction management services, which is approximately 8% of the total project budget. Costs of CIP Consultant Cascade View Project Funding Const Mgmt Total Construction Savings Proposal Services Costs Mgmt Budget Cascade View Drainage $153,000 $367,000 $520,000 $620,000 $100,000 This savings of $100,000 is money that does not have to be borrowed from the Trust Fund Loan. 5. Retain the services of an angineering firm to address the transportation, water and sewer issues associated with the infrastructure needed to support the annexation. Public Works' current workload prevents the staff from addressing the engineering issues that will arise becanse of the proposed annexation. In order to address these issues in a timely manner, it is proposed that an outside consultant fn'm be retained to provide Ryan Larson with the needed engineering support. The contract would be structured as a task order contract - no costs would be incurred unless the City issues a specific scope of work. It is estimated that the consultant costs could be as high as $75,000 per year. OPTIONS 1. Authorize the Mayor to implement the proposal described by this memo. 2. Continue to staffthe proposed annexation and associated work with existing resources. This would result in significant delays to virtually all major initiatives, including the CIP Program and the annexation proposal. (Please note, howeTger, that most of these initiatives have legally or contractually mandated timeframes). 3. Request that the proponent fund the additional resource needs described by this memo. 4. Decline to process the annexation proposal at this time. RECOMMENDATION Authorize the Mayor to implement the proposal described by this memo. Page 4 of 4 Fina..nce and Safety Committee April 5, 2004 Present: Dave Fenton, Chair; Joan Hernandez, Dennis Robertson Keith Haines, Jim Morrow, Steve Lancaster, Alan Doerschel, P, honda Berry, Lucy Lauterbach 1. Military Benefits Clarification Resolution 1529 provides medical insurance for the families of people who are serving in the military. The resolution was unclear whether the twelve month coverage was for a contiguous period, or if it could cover people who served overseas for six or eight months, came home, and then left again for another six month tour. Jim Morrow made a plea for the military families, saying it would remove one worry from those who have a head of a household in active service. Dennis asked how much it cost last year, and Alan said it was a.minimal cost to the City. The Committee unanimously recommended that the twelve-month limit (and possible extension) start over with each activation for service. Report clarification to Council. 2. Position Reclassification Jim Morrow said he had planned to do a reclassification during the budget review process last fall. In the draft budget he had put a Business Manager in the organizational chart and planned for Frank to fill it, but then found it was no such position existing in the City's position classification system. Administrative Services recommended either devising a new classification of service, or finding one that would work for the "new" position. The Classification Description for Assistant Director worked for the newly named position of Deputy Director for Business Services. In the list of additional duties, Joan asked for a clarification of why the Deputy Director would oversee the Emergency Operation Center (ECG). Jim said he was not giving up being co-chief (with Nick Olivas) of the EOC, but that in an emergency the Deputy Director would oversee the Public Works Department-specific duties while Jim oversaw the overall EOC operations. The position is funded, and it will acknowledge the additional Workload Frank has assumed over time, including some engineering contract management. Dennis said the Classification was very general, but others said it is necessarily so, as it can apply to a variety of positions and is not a job description. RecOmmend to COW and Regular Meeting. 3. TVS Staffin,,q Needs, Steve L explained that DCD has been limited in the amount of work that can be done on the Tukwila Valley South (TVS) annexation because of the other pressing issues such as TUC, TOD, Sound Transit, the Mall expansion, and the Comp Plan. Steve said he could have spent' 30 hours on the TVS proposal last week, but he was'~on[y able to spare 3 hours. Public Works is also Very busy with projects and Cannot spare staff to work on TVS. As the TVS proposal is starting to gain momentum, staff will be needed to work on it. Steve wants to hire a contract employee as a project. manager for the DCD portion on the workload required to adopt a pre-annexation agreement, a master plan, an ElS, Comp Plan amendments, and a development agreement. All of these will be needed before annexation. Public Works plans to assign Ryan Larson work on TVS half time, and to hire a current contract employee, Mike Finance and Safety 4/5/04 Ronda, to backfill Ryan's work on surface water. Mike will retain some inspection, and another inspector will be hired on a contract basis to help Mike. Costs are estimated to be from $60,000-$120,000 for the rest of 2004. Funds will come from savings in project budgets of other Public Works projects, as well as from Ending Fund Balance. The Mayor strongly recommended against allowing Segale to fund the positions, as the contracted persons would spend most of their time outside of City Hall working with Segale in meetings. The Mayor wants to avoid an appearance of fairness issue that could result from the positions being developer-funded. One issue Steve L raised is that because of all the pre-annexation items Segale wants before he will annex, the City could spend a lot of money working through all the items. The City may want to include something in the Pre-annexation agreement that, in the event the property owner decided against annexation, would require the City be reimbursed for work completed up to the point of the decision not to annex. There won't be any permit fees incurred until about 2006. If the project were successful, development would then continue for an estimated ten years. Joan said she was uneasy about the funds coming from the ending fund balance. She thought it was confusing to read about the Cascade surface water budget going to the contract employee, Mike Ronda, and she wanted to be clear about where all the funding was coming from. Staff was interested in moving ahead quickly with this proposal, but they agreed not to push for its approval that evening, but to reschedule it for next week's COW and Special Meeting. Recommend mayor's proposal to 4/5 meeting~ 4/12 COW and Special Meeting. 4. Crime Update for Tukwila International Boulevard Keith said criminal activity has picked up on TIB in recent months. Prestitutes are more in evidence there, and there has been loitering that might indicate drug activity. The cameras are broken, which seems to encourage illegal activity. Police are responding with hire patrols and plain- clothes police officers. They have already arrested some prostitutes. Committee members asked about the Highway 99 Citizens Patrol, and were told they have largely lost interest as crime had dropped off. Litter is a real preblem around the intersection of TIB and S. 144t". The Stop By corner grocery is selling marijuana pipes and has pomogrephic magazines in clear view of any kids who walk into the store. As neither of these things is clearly illegal, police walk a fine line trying to convince the store owner it is not in the community's interest to have these things. ,loan asked how much crime is the result of the cameras being down. Keith said he didn't know, but he's eager to get the new cameras. In the meantime, a new controller that will work with the old cameras and the new ones has been installed. The olfl cameras should be able to be used in a limited fashion soon. The new cameras have to wait for City Light to pull their wires and the new lights'to go up, so it could be some time before they're installed. Information; reschedule'in one month. 5. Memorandum of Understandin.q (MOU) Law Enforcement Info Exchan.qe (LinX) The last time this issue was discussed at Committee, Dennis had suggested several changes to the MOU. However, when Keith took those recommendations to the next LinX meeting he found several cities and agencies had already approved the agreement