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HomeMy WebLinkAbout2010-04-12 Committee of the Whole MinutesStart: 6:30 p.m. Council President Robertson announced the purpose of the Executive Session is to discuss Pending Litigation Pursuant to RCW 42.30.110(1)(i). It will last no more than 30 minutes, and no decisions will be made during the Executive Session. Attendees: Jim Haggerton, Mayor; Shelley Kerslake, City Attorney; Steve Lancaster, City Administrator; Nora Gierloff, Community Development Deputy Director; Brandon Miles, Senior Planner; Tukwila City Councilmembers Joe Duffie, Joan Hernandez, Dennis Robertson, Allan Ekberg, Verna Seal, Kathy Hougardy, De'Sean Quinn. End: 6:58 p.m. CALL TO ORDER/PLEDGE OF ALLEGIANCE Council President Robertson called the Tukwila City Council meeting to order at 7:08 p.m. and led the audience in the Pledge of Allegiance. OFFICIALS Present were Dennis Robertson, Council President, Councilmembers Joe Duffie, Joan Hernandez, Allan Ekberg, Verna Seal, Kathy Hougardy, De'Sean Quinn. CITY OFFICIALS Jim Haggerton, Mayor; Steve Lancaster, City Administrator; Shelley Kerslake, City Attorney; Shawn Hunstock, Finance Director; Eric Dreyer, Police Commander; Derek Speck, Economic Development Administrator; Bob Giberson, Public Works Director; Frank Iriarte, Public Works Deputy Director; Robin Tischmak, City Engineer; Rick Still, Interim Parks and Recreation Director; Jack Pace, Community Development Director; Nora Gierloff, Community Development Deputy Director; Bob Benedicto, Building Official; Brandon Miles, Senior Planner; Kathy Stetson, Code Enforcement Officer; Mary Hulvey, Code Enforcement Officer; Mary Miotke, Information Technology Director; Lisa Verner, Project Manager; Kimberly Matej, Council Analyst; Melissa Hart, Deputy City Clerk. SPECIAL PRESENTATIONS A proclamation recognizing Arbor Day. Mayor Haggerton read a proclamation recognizing Arbor Day as April 14, 2010. Additionally, Mayor Haggerton explained that each State's Arbor Day celebration date initiates the signing of an Arbor Day proclamation by local officials and Arbor Day activities related to trees and tree planting. While National Arbor day is observed on the last Friday of April, individual states observe Arbor Day at different times between January and May each year. Washington State observes Arbor Day on the second Wednesday of April, which this year is April 14. CITIZEN COMMENTS Tukwila City Council Committee of the Whole Meeting City Hall Council Chambers April 12, 2010 7:00 P.M. MINUTES EXECUTIVE SESSION Jim Dunaway, 4246 South 150 Street, indicated he has worked for the City for the last ten years and is here this evening as a resident. He explained that on April 10, 2010, an individual who was attending a party at a house in his neighborhood at 4238 South 150 Street threatened him with bodily harm. Mr. Dunaway stated that after the current property owner moved into their neighborhood approximately nine Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 2 of 15 months ago, the neighborhood has endured: loud music at all hours of the night, drunken brawls with knife injuries resulting in Fire and Police responses, broken windows, indecent exposure, destruction of property, and now physical harm. They also have had to deal with excessive vehicles blocking all access to the neighborhood including his home. According to a boarder of the subject single family home, the owner is renting out rooms as a boarding house. He explained he has contacted the Code Enforcement Office, the Police Department, the Fire Department and Public Works to no avail. His family and neighbors are very concerned for their safety and that the violence will continue to a point of serious injury or death. Due to the threats and in concern for his safety, Mr. Dunaway was compelled to contact two City Councilmembers after the incident in question, and they asked him to provide the facts to the entire Council. He explained that he and his wife have enjoyed living in the City; however, due to the recent events, the family has decided to list their house for sale and leave the area. Councilmember Hougardy asked the administration if the Citizen Tracking System has been implemented. Steve Lancaster, City Administrator, explained the basics of the system have been developed and could be used to track the comments made by Mr. Dunaway. However, the electronic portion of the program is not complete, and the Council would need to contact the Mayor's Office to check the status of the issue. Councilmember Hernandez explained that a new Noise Code Ordinance will be discussed at the April 26, 2010 Council meeting, which could help the residents with enforcement of these types of violations. Councilmember Ekberg thanked Mr. Dunaway for presenting the information to the Council and asked what type of structures are in the neighborhood. Mr. Dunaway explained there are four single family homes in the area in question. Councilmember Duffie explained he was one of the Councilmembers who was contacted after the incident of April 10, 2010, and he thanked Mr. Dunaway for providing the Council with the information about the problems in his neighborhood. Mary Dunaway, 4246 South 150 Street, explained that due to the incident of April 10, 2010 and the lack of resolution to all the complaints, she does not feel safe in her home. Ricardo Frazer, 4234 South 150 Street, explained there are four homes in the enclave of his neighborhood, and for the last nine months the residents in his community have been living under siege. His kids have been subjected to loud music at all hours of the night and witnessed serious altercations and the physical threat of their neighbor on April 10, 2010. The no- parking signs are ignored and personal property is damaged and trespassed upon. Mr. Frazer stated that comments from the "party attendees" when the police do respond is that the sirens are a warning for them, and they know where to go and hide until the police have left the area. Unfortunately, the recent events have led the Dunaway family to list their home for sale, and his family has been searching for a new home as well. Jalil Frazer, 4234 South 150 Street, is 15 years old and is currently a student. He explained that the early morning disturbances wake him all the time, and it is very difficult to concentrate on schoolwork. The loud karaoke type of music, parties, and fights are frightening for his family. Sanitta Huff, 4234 South 150 Street, explained that because of all the problems they are having with the boarders at 4238 South 150 Street, she is very afraid for the safety of her children. In 2008, they moved, sold their house and moved into their current home and because of the recent incidents and physical threats to Mr. Dunaway, she is very afraid. As the Police were leaving, the residents were told the Police could not do anything about the situation, and they should contact the City Council. She explained that after the incident on April 10, 2010, she was in the process of ensuring all the doors were locked, and she noticed a window was broken at the residence in question. An individual who was attending the party at the house next door was lounging in their back yard. These people have demonstrated no respect for boundaries, and they trespass on private property and show no regard for others. Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 3 of 15 Councilmember Quinn explained there has been substantive information provided to the Council, and enough new information for a policy discussion. Mr. Quinn stated as the Finance and Safety Committee Chair, he would like to have this discussion. Council President Robertson indicated he is available to meet with the administration this week to discuss this issue, and he will provide a report to the Council on the matter. Mayor Haggerton indicated administration will research the history of the events and contact Mr. Robertson to schedule a meeting to review the findings. Councilmember Seal thanked the Dunaway and Frazer families for notifying the Council of the problems in their neighborhood. The fact that they were told to talk to several different departments is the most frustrating part of municipal government. Ms. Seal explained that notifying the Council of the issues is the only way the City can work toward correcting the problems. Mr. Duffie encouraged the families to continue calling 911 and document the issues. The residents are the eyes and ears of the Council, and they cannot provide assistance and make policy changes if they do not know about the problems. Councilmember Hougardy explained the Council is responsible for making policies for the City, and any changes in the policies will aid in the enforcement. She thanked the families for attending the meeting and providing the Council with the information. PUBLIC HEARING An ordinance amending various ordinances as codified at Tukwila Municipal Code Title 18, "Zoning Code," to incorporate definitions of Diversion Facility and Diversion Interim Services Facility; to clarify definitions of Convalescent/Nursing Home, Outpatient Medical Clinic and Hospital; and to update the Zoning Code and its provisions for such uses. Brandon Miles, Senior Planner, explained the public hearing this evening is on Zoning Code changes relating to the siting and operation of Crisis Diversion Facilities (CDF) and Crisis Diversion Interim Services (CDIS) Facilities. The proposed ordinance would allow this as an Unclassified Use, within one half mile of the Transit Center on Andover Park West. The Planning Commission conducted a public hearing on February 25, 2010 and forwarded the proposed ordinance to the Council for review and consideration. The Community Affairs and Parks Committee reviewed the proposed ordinance on March 8, 2010, and the entire Council was briefed on March 15, 2010. The Crisis Diversion Facility, according to the original King County Request For Proposals (RFP), will have a target population of adults in crisis that would have been transported to a hospital emergency department or arrested for minor crimes and transported to an Adult Detention Facility. The CDF is a regional facility that will serve all of King County. Law enforcement agencies will be able to utilize the facility, and the facility must accept all individuals who are brought to the facility by those agencies. It is estimated that 40% of the CDF clients will be brought to the facility by law enforcement agencies. The CDIS is the sister facility to the CDF. The CDF is the first step for individuals in crisis, and they can reside at the CDF up to three days. The CDIS is targeted toward helping individuals who have completed the CDF program and are homeless. The stays at the CDIS will be up to 72 hours. Staff has met with several providers and was informed the facility will not be a compelled facility. The original RFP issued by King County specified that the location be "A centralized location with easy access and at least two routes to the facility by freeway and /or major arterials. The ideal location would be south of downtown Seattle and north of Southcenter and routes that easily access the East Side." The new RFP has changed that location requirement pertaining to the CDF, by saying: "A centralized location with easy access to the facility by freeway and /or major arterials." The Request for Proposals issued by King County dated March 11, 2010 is a re -bid for the Crisis Diversion Facility. According to King County, they have not issued a re -bid for the CDIS portion of the RFP, nor have they contracted with or selected a location or group to operate the CDIS. Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 4 of 15 Mr. Miles distributed Amendment No. 1 to the CDF Request for Proposals dated March 30, 2010, minutes from the February 25, 2010 Mental Illness and Drug Dependency (MIDD) Oversight Committee, and an email response from the King County Office of Procurement relating to specific questions on the siting for the CDF. He also explained that at the Planning Commission Meeting there were some concerns relating to the value of the ability to locate a facility in the Southcenter area. In King County's RFP it was determined a fair value was based at $38.90 a square foot. Staff has researched this issue and found the quoted rate by King County is very high, and this would not preclude King County from siting the facility in the Southcenter area. 7:45 p.m. Council President Robertson opened the Public Hearing. Melissa Hart, Deputy City Clerk, explained the City received two written comments for this evening's public hearing. The first was received via hand delivery on April 8, 2010 from Sleeping Tiger, LLC, and the second was received via email and hand delivery on April 12, 2010 from the Downtown Emergency Services Center, known as DESC. Graydon Andrus, 515 Third Avenue, Seattle, indicated he is the Clinical Programs Director for DESC. Their organization is a multi- service agency focused on providing service to homeless adults and providing a range of services to meet all of their various needs. Mr. Andrus explained the purpose of a Crisis Diversion Facility and a Crisis Diversion Interim Services Facility is to focus on working with people in the facility. The goal is to understand what is happening in their lives and how the facility and staff can provide a positive effect on their lives when they leave the facility. He stated that DESC was recently selected as provider for the CDIS portion of the King County Request for Proposals relating to the 3 -part Mental Illness and Drug Dependency (MIDD) Program in King County. He explained at the February 25, 2010 Planning Commission Public Hearing, some concerns had been raised about the siting of a CDF and CDIS near a Transit Center where transportation would be readily available to the facility clients and they could be integrated into the community. He explained the idea of integrating the clients into the community would be counterproductive to the program. The clients will have three days to receive as much information and assistance as possible, and participants in the program will not be inclined to roam around the City. Mr. Andrus also clarified that DESC would provide transportation for clients to scheduled appointments or returning them to their home community after their stay has been completed. They would not release clients into a community that is unfamiliar, as that would add to the duress of the clients. Mr. Andrus indicated that DESC utilized the Riverside Residences, a facility in Tukwila, as their proposal site to King County for the CDF and CDIS. The proposed facility was near transportation, and it has the physical plan to meet the needs of the program. The area is remote enough as to not provide any distractions, such as Southcenter, for the clients to be interested in checking out. Requiring the facility to be within one -half mile of the Transit Center in the Tukwila Urban Center is not essential for the program to succeed. That would work against the purpose of the program. He encouraged the Council to consider changing the requirements related to the siting and the proposed location. Councilmember Ekberg asked Mr. Andrus to clarify which program DESC was selected to manage, and if they would be involved in the Mobile Crisis Team. Mr. Andrus clarified that DESC was selected to operate the Crisis Diversion Interim Services part of the program. He explained the CDIS program has been described as the 14 -day program. The CDIS is a subset of the Crisis Diversion Facility. He indicated that if DESC were to respond to the RFP for the CDF, then they would be part of the Mobile Crisis Team. Councilmember Hernandez asked if the clients of the Crisis Diversion Facility would be allowed to leave the facility during their stay. Mr. Andrus clarified that legally the facility could not prevent a client from leaving the facility. The CDIS /CDF would be a controlled facility with the comings and goings of participants being monitored. He Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 5 of 15 explained that DESC has a lot of experience with this type of program and engaging clients so they want to participate in the programs being offered. Councilmember Duffle asked if the facility would be staffed 24 hours a day. Mr. Andrus answered in the affirmative. Councilmember Ekberg asked if DESC currently manages a program that is similar to the CDIS. Mr. Andrus stated that DESC has operated a 24 -hour emergency shelter in Seattle since 1979. Council President Robertson requested clarification about how the individuals would be referred to the facility or who would transport them to the facility. Mr. Andrus explained that the Crisis Diversion Facility would be open to first responders, such as King County Sheriff, Municipal Police Departments, Medic One and Crisis and Commitment Services. Individuals in crisis could benefit from the CDF assistance rather than being transported to an emergency room or an adult detention center. Mr. Robertson explained that previous information presented to the Council implied that parents, family members or an individual in crisis could also go directly to the facility. Mr. Andrus confirmed that an individual or family member could transport someone directly to the facility. Mr. Robertson asked if the CDF would have an agreement with the outlying jurisdictions specifying that they would be responsible for pick -up of an individual who chooses not to stay at the CDF. Mr. Andrus explained that DESC does not have any type of agreement with the jurisdictions. However, that requirement is implied in the plan. This type of agreement would be part of the facility start -up and establishment of a Memorandum of Understanding with each jurisdiction. Councilmember Ekberg stated the CDIS has been described as a 20 -bed facility, and he asked if there are any similar facilities available for the Council to review. Mr. Andrus explained that DESC proposed a 30 -bed facility, and this type of program is all over the area. Pierce County is currently working on implementation of this type of facility, and there is a similar facility in San Antonio, Texas. Councilmember Quinn asked if these facilities would be diverting individuals from Harborview Medical Center. Mr. Andrus explained that many of the individuals would be diverted from emergency rooms and the costs associated with hospital treatment. Councilmember Duffie asked who would provide background checks on individuals who are admitted to the facility. Mr. Andrus clarified the transporting Police Department would be conducting the background checks on the individuals who are being transported to the facility. Bill Summers, 845 106 Avenue NE, Bellevue, explained he currently owns the Riverside Residences in Tukwila. He explained he terminated the Red Lion franchise for his facility and changed to extended -stay housing. As Mr. Andrus has explained, DESC would provide transportation for the individuals leaving the facility back to their own communities. They would not be sent into the community to find their own transportation home. The original RFP specifically stated the facility should be located north of the Southcenter area for easy access. This will be a great facility providing an essential public service. He stated his property is located within the Manufacturing and Industrial Center and by the end of the year, unless King County changes the facility requirements, will be the location of the new CDIS facility. However, if the limitation is to the Southcenter area, the facility will not be located in the area. Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 6 of 15 Councilmember Ekberg asked for clarification regarding the existing facility being used for short -term housing. Mr. Summers explained DESC currently leases some of the rooms for emergency housing, and the facility is approximately 7 acres, has 120 hotel rooms, a 4,500 square foot meeting space and a lobby building. The existing facility could be used as the CDIS, and an extension could be built for the CDF. Cynthia Kennedy, 2801 Alaskan Way, Seattle, represents DESC. DESC appreciates the City's efforts to identify zones where the CDF and CDIS could be located. However, as Mr. Andrus stated, they are concerned that the current zoning proposals still need additional work if the facilities are going to come to fruition. Most importantly, the proposed area needs to be expanded to encompass more sites that are better suited for this particular use. DESC is concerned that the unprecedented small size of this zone severely restricts the potential sites for the facilities. The current zoning proposal restricts this use to a one -half mile radius around the transit center. This is unprecedented under the Tukwila Zoning Code, and no other uses are restricted to such a small area. At a minimum, the other uses are permitted throughout the applicable zone. Many uses, including other essential public facilities, are allowed in other zones. In contrast, the current zoning proposal would limit these facilities to a tiny portion of one zone, and they would not be permitted throughout the Tukwila Urban Center and the Southcenter Zone. DESC fears the proposed Zoning Code changes would preclude the siting of the facility in Tukwila. The Growth Management Act (GMA) is intended to prevent this type of result. The GMA mandates a process for siting essential public facilities like the CDF and CDIS, and it requires that zoning preclude the siting of essential public facilities. Satisfying those GMA requirements means the City must adopt zoning that yields potential sites for the CDF and CDIS; otherwise, the GMA mandates are meaningless. These sites must be suitable in size, have a functional layout, sites converted to the use at a reasonable cost, and conducive to the proposed use. The proposed siting could yield sites that are not conducive to the success of the program. A private location would be better for the internally focused clinical programs. Despite the best intentions, the narrowness of the proposal could have the effect of precluding the viable facilities and violating the GMA. It appears the City imposed the half -mile radius thinking the program would rely on public transit. However, that is not the case. DESC is providing a van service for the CDIS and is proposing a similar service for the CDF in order to transport program participants to and from necessary appointments and other destinations. Upon completion of the program, DESC will also provide transportation for the participants back to their communities. DESC has included a provision of transportation services, eliminating the need for the location to be near the Transit Center. DESC requests the zoning be expanded to the entire Tukwila Urban Center zone or at least the Southcenter portion of the zone and the Manufacturing and Industrial area zone. These areas would be more conducive to the use and would be a good location to consider. Councilmember Hougardy asked if there are other areas or cities where this facility could be located. Ms. Kennedy explained there are other cities and areas that could be considered. However, the location describes the intersection between Interstate 5 and other transportation corridors, making Tukwila an ideal location. Brent Carson, 2025 First Avenue, Suite 500, Seattle, indicated he is representing WEA Southcenter, owner of the Westfield Mall. Mr. Carson explained his clients are requesting the Council return the proposed Zoning Code changes back to staff, with no Council action. The testimony clearly indicates that staff needs to review the information presented. The assumption that the facility would be secure and the required siting be near a Transit Center appears to be inaccurate. His clients prepared information based upon the staff report and now, with the new information, he requests the Council ask staff to re -do the analysis and allow individuals another opportunity to testify about the new information. The Southcenter area is the wrong location to locate the facilities, as they are incompatible with the area and its existing family- oriented, retail, restaurant and entertainment uses. These facilities are for individuals in crisis, and individuals participating in the CDIS have been deemed too dangerous to return to shelters. If that were the case, he questioned why these types of facilities Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 7 of 15 would be located within direct proximity to the vibrant family- oriented facility of Southcenter Mall. Fourteen million people visit the area with children, and Southcenter is the primary economic engine for the City. Wesffield is working very hard to revitalize the area. Locating a facility such as the CDF and CDIS would put economic vitality at risk. The staff report notes the City discounted a location in the Tukwila International Boulevard area because of the City's investment of over $10 million in that area. He explained that Wesffield has invested $240 million dollars to expand the mall and enhance the family- oriented retail and entertainment opportunities. Wesffield is very sensitive about potential security issues because of the number of children, families, and seniors that visit the mall. Wesffield has utilized their extensive investment and the best security possible, and the City knows they have experienced challenges from outside the City. The idea that the City would consider locating these facilities within walking distance of the mall is disturbing. The public needs to better understand these types of facilities and the security of the individuals at the facilities. The City's consultant has stated that Tukwila needs to attract investors to the area, and siting the CDF /CDIS in this location would deter investors. The code change that has been presented is inconsistent with the City's Comprehensive Plan. It appears the staff report is a conclusion first and an analysis second. The policies show the Zoning Code changes are inconsistent with the Tukwila Urban Center Policies. After review of the information provided, it was determined an amendment to the Comprehensive Plan should occur prior to the proposed Zoning Code changes. There is nothing in the Comprehensive Plan that addresses social services and this type of use. There are better locations that would avoid the conflict associated with siting this facility close to the family- oriented retail, dining, and entertainment facilities, and the long -term vision for the Tukwila Urban Center. The staff report stated the facility would be a locked facility for 72 hours, yet the new information presented indicates individuals can simply leave the facility. The new information is inconsistent with the SEPA analysis that was conducted by staff. Mr. Carson explained that a new staff report should be completed based on the corrected information that has been provided, to include Comprehensive Plan amendments and a corrected SEPA review. Councilmember Quinn asked Mr. Carson if he would share Wesffield's comments and concerns with the King County MIDD Oversight Committee. Mr. Carson explained he looks forward to further communication with the City on this matter. Council President Robertson asked the City Attorney if the public hearing could be continued. Shelley Kerslake, City Attorney, explained the public hearing could be continued to a date certain. Council President Robertson continued the public hearing on this issue until May 3, 2010. SPECIAL ISSUES a. An ordinance amending various ordinances as codified at Tukwila Municipal Code Title 18, "Zoning Code," to incorporate definitions of Diversion Facility and Diversion Interim Services Facility; to clarify definitions of Convalescent/Nursing Home, Outpatient Medical Clinic and Hospital; and to update the Zoning Code and its provisions for such uses. Councilmember Duffie indicated this item was discussed at the Community Affairs and Parks Committee meeting on March 8, 2010. The committee members were unanimous in recommending approval. Councilmember Hernandez requested the item be referred back to staff for further review. She specifically would like staff to clarify the Comprehensive Plan amendment and the SEPA review as explained by Mr. Carson. Councilmember Seal indicated the Council has been provided new information and there are many unknown factors. She is in favor of staff providing additional information and answers to the questions that were raised during the public hearing. Councilmember Quinn explained he would like to have more clarifying information from staff before making a decision. Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 8 of 15 Council President Robertson commented that it appears the City of Tukwila was chosen because of the intersection of the highway and the City. Staff from Tukwila should have been present at the beginning of these discussions and prior to the issuance of the Request for Proposals. COUNCIL CONSENSUS EXISTED TO RETURN THIS ITEM TO STAFF FOR MORE INFORMATION AND FUTURE DISCUSSION b. An ordinance establishing Residential Rental Housing regulations, to be codified at Tukwila Municipal Code Chapter 5.06, "Residential Rental Business License and Inspection Program." Councilmember Duffie indicated this item was discussed at the Community Affairs and Parks Committee meeting on March 22, 2010. The committee members were unanimous in recommending approval. Jack Pace, Community Development Director, explained that as part of the 2008 program goals the City Council asked that staff develop a proposal for a rental housing inspection program. The purpose of any rental housing inspection program is to ensure the citizens are living in units that are safe and healthy. Kathy Stetson, Code Enforcement Officer, explained that Tukwila's housing stock is aging, most of Tukwila's households live in rental housing, and nearly half of the rental housing is rated as "needs maintenance," "deteriorated" or "dilapidated." The primary purpose for a rental housing licensing and inspection program is to ensure that our citizens are living in safe and healthy housing. It will encourage property owners to keep their properties up to standards, improve conditions over time, and keep the tenant out of the middle of the complaint process. The program will require all rental property owners to obtain an annual residential rental business license. The license requires an inspection every fifth year. The inspection checklist will be provided to the property owner with the application form so they can prepare for the inspection. The property owner may choose a private inspector with certain credentials and approved by the City, or choose a City inspector to perform the inspections. The items inspected are given a point value based on the criteria in the International Property Maintenance Code. A unit will pass the inspection if their score is less than 25 on the inspection checklist. Certain items constitute an automatic failure, such as lack of heat, lack of hot or cold water, lack of a kitchen or bathroom, lack of emergency egress, or other hazardous conditions. If the unit passes the first inspection, a Certificate of Compliance will be issued with an expiration date of December 31 four calendar years later. With a valid Certificate of Compliance, the property owner must only renew the annual business license. If the unit fails the first inspection, the City allows 30 days for the necessary repairs to be completed and re- inspected. In most cases, the tenant may remain in the unit during the 30 -day repair period. If the unit fails the second inspection, the unit is posted as "Unfit for Occupancy" and tenants, if any, will be required to vacate the unit. Relocation assistance may apply for those affected tenants. There are approximately 4,000 rental dwelling units in the City of Tukwila. The City will need to phase in the inspections over a three -year period, and the program will require all owners to apply for a residential rental business license beginning January 2011. A provisional license will be issued with a specific deadline for obtaining the first inspections. The fees for the program will be $50 for an annual license for facilities with 1 -4 units; $100 for facilities with 5 or more units; and the inspection fee with a City Inspector is $35.00 (every 5th year). The fees generated will cover the costs of inspectors and administrative support for this program. Councilmember Ekberg asked how staff would complete the inspections. Jack Pace, Community Development Director, explained that with current budget reductions, staff would be redirected to keep the program revenue neutral. Councilmember Ekberg asked if a property owner who had 200 units, would be required to have each of the units inspected prior to the residential rental license being issued and receipt of the Certificate of Compliance. Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 9 of 15 Ms. Stetson explained that a property owner would be required to have all of the units inspected, and each individual unit would receive a Certificate of Compliance. Councilmember Hougardy inquired if there is any type of protection for a property owner that has their property destroyed or damaged by tenants. Ms. Stetson clarified the City will not be a decision maker regarding property damage issues. The purpose of the program is to ensure the units being rented are safe. The Landlord- Tenant Law is the protection for the property owners. Councilmember Quinn explained this is a very good example of the Council working on a program that will be beneficial to the community and the residents. Councilmember Ekberg explained he is concerned about the costs associated with the inspections and feels the inspection fee could be increased. He asked staff to provide an update at the next Regular Meeting relating to the cost a private inspector would charge to perform the same type of inspection. Ms. Stetson explained that staff is aware the fees associated with operating this program will be passed on to the tenants, which is why staff has tried to ensure the inspection fees will cover the actual costs associated with the program and not become burdensome to the tenants. Councilmember Quinn explained the proposed program appears fair, financially sustainable, and protects the City from possible claims. Ms. Stetson indicated she has worked closely with the City Attorney on the proposed program, which has been modeled after the program currently in use in the City of Pasco, Washington. Mr. Pace clarified the purpose of the program is not to investigate complaints about paint colors, but to address safety concerns. Council President Robertson asked what would happen to the property owner that has earned 23 or 24 points. Ms. Stetson explained the unit would pass and staff would continue to monitor the tenant complaints for that unit. Mr. Robertson stated the information relating to a unit inspection would be very beneficial to potential tenants. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. 9:16 p.m. Council President Robertson declared a brief recess. 9:22 p.m. Council President Robertson reconvened the Committee of the Whole Meeting. c A discussion regarding the naming of park property at 12929 50 Place South. Councilmember Duffle indicated this item was discussed at the Community Affairs and Parks Committee meeting on March 22, 2010. The committee members were unanimous in recommending approval. The recently developed park property located at 12929 50 Place South will be dedicated on May 8, 2010. The land previously belonged to the Codiga family and served as a pioneer farm. The Park Commission recommends "CODIGA PARK" as the official name of the park property. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 10 of 15 d. An ordinance granting a non exclusive franchise to AboveNet Communications for the purpose of constructing, operating and maintaining a telecommunications system in certain public rights of -way in the City. Councilmember Hougardy indicated this item was discussed at the Utilities Committee meeting on March 23, 2010. The committee members were unanimous in recommending approval. Frank Iriarte, Public Works Deputy Director, explained that the franchise agreement with AboveNet Communications (formally Metromedia Fiber Network Services), Ordinance No. 2145, expired on December 12, 2009. AboveNet Communications is a telecommunications company that provides customized network solutions and high bandwidth connectivity for financial, healthcare, and government entities. The Council is being asked to consider an ordinance granting a non exclusive franchise to AboveNet Communications. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. e. An ordinance granting a non exclusive franchise to PAETEC Holding Corporation, an Iowa Corporation, for the purpose of constructing, operating and maintaining a telecommunications system in certain public rights -of -way in the City. Councilmember Hougardy indicated this item was discussed at the Utilities Committee meeting on March 23, 2010. The committee members were unanimous in recommending approval. Mr. Iriarte explained that PAETEC is a telecommunications company that provides an extensive suite of data, Internet protocol (IP) based solutions, voice communications, networks security, customer premises equipment, and managed services. The Council is being asked to consider an ordinance granting a non- exclusive franchise to PAETEC Holding Corporation. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. f. An ordinance adopting the 2010 Standard Specifications for Road, Bridge, and Municipal Construction. Councilmember Seal indicated this item was discussed at the Transportation Committee meeting on April 5, 2010. The committee members were unanimous in recommending approval. Local agencies utilizing federal funds for transportation contracts must incorporate and adopt the 2010 Standard Specifications, as published by the Washington State Department of Transportation and the Washington State Chapter of the American Public Works Association. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. g. An agreement with KPG, Inc. to design the 2010 Annual Small Drainage Program. Councilmember Hougardy indicated this item was discussed at the Utilities Committee meeting on March 23, 2010. The committee members were unanimous in recommending approval. Bob Giberson, Public Works Director, explained the Annual Small Drainage Program repairs surface water projects that are identified through maintenance activities as well as citizen complaints. Three consultant firms were short listed from the Consultant Works Roster, and KPG was chosen as the most qualified. The three proposed projects, Gilliam Creek Regional Detention Facility, Gilliam Creek South 154 Street Crossing, and Tukwila International Boulevard pipe replacement, are being designed for construction in 2010. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 11 of 15 h. Southcenter Parkway Extension documents: Councilmember Seal indicated this item was discussed at the Transportation Committee meeting on April 5, 2010. The committee members were unanimous in recommending approval. Lisa Verner, Project Manager, explained the Tukwila South Development Agreement calls for the City to relocate and construct a 5 -lane Southcenter Parkway Extension. In order to begin construction, the City must accept the three previously awarded grants, sign an Interlocal Agreement with Highline Water District and two agreements with Puget Sound Energy, amend the construction management contract with KBA, Inc., and award the construction to Scarsella Bros., Inc. The Council discussed the following 8 items: 1. A grant agreement with the Washington State Department of Commerce for the Southcenter Parkway Extension project to accept grant funds in the amount of $3,980,000.00. 2. A grant agreement with the Washington State Department of Commerce through the Community Economic Revitalization Board (CERB) program for the Southcenter Parkway Extension project to accept grant funds in the amount of $6,000,000.00. 3. A grant agreement with the Washington State Transportation Improvement Board (TIB) for the Southcenter Parkway Extension project to accept grant funds in the amount of $2,000,000.00. 4. An Interlocal Agreement with the Highline Water District regarding the Southcenter Parkway Extension project. 5. An underground conversion project plan agreement with Puget Sound Energy for the Southcenter Parkway Extension project, estimating the construction costs to be $241,400.00. 6. An underground conversion construction agreement with Puget Sound Energy for the Southcenter Parkway Extension project, in the amount of $241,400.00 7. Supplement #1 to Contract #10 -038 with KBA, Inc. for the Southcenter Parkway Extension project, in the amount of $2,488,950.00. 8. A bid from Scarsella Bros., Inc. for the Southcenter Parkway Extension project, in the amount of $16,030,030.64. COUNCIL CONSENSUS EXISTED TO FORWARD THESE ITEMS TO THE NEXT REGULAR MEETING. i. A resolution urging the United States Department of Defense to select the Boeing Company to build the next mid -air refueling tanker. Councilmember Quinn indicated this item was discussed at the Finance and Safety Committee meeting on April 6, 2010. The committee members were unanimous in recommending approval. The Boeing Company is competing for a contract to build the U.S. Air Force's next mid -air refueling tanker. If awarded this contract, Boeing will build the tanker at its Everett facilities, with beneficial economic impacts throughout the Puget Sound Region. Several government and business organizations have adopted similar resolutions. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. j. Budget Issues: Utility tax on City -owned utilities; Increase business license fees; Revenue generating regulatory license; TBD license tabs. During its February 2010 annual retreat, the City Council discussed a wide range of options for addressing the long -term gap between anticipated revenues and expenditure forecasts to include the following: Utility Tax on Citv -Owned Utilities: Shawn Hunstock, Finance Director, explained the first item for discussion relates to the utility tax on City owned utilities. The City adopted Ordinance No. 2258 on October 19, 2009, enacting a utility tax of 15% from December 31, 2008 through April 30, 2010, and a rate of 10% from May 1, 2010 through December 31, 2012. The tax is on the City's water, sewer, and surface water funds. An increase of three percent from May 1, 2010 would generate approximately $300,000. If the sunset provision was removed from Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 12 of 15 Tukwila Municipal Code Section 3.54.030, the tax would need to be included in cost assumptions for annual utility rate setting purposes. Councilmember Quinn asked if the City would be required to pass a new ordinance to extend the sunset provision. Mr. Hunstock explained the ordinance would need to be amended to extend the sunset provision. Councilmember Hougardy requested clarification relating to the service impact for residents and when the customers would be affected by the increased tax rate. Mr. Hunstock explained that in the surface water fund the residents would see that impact by 2011. Councilmember Ekberg inquired about how much revenue the City could generate if the sunset provision was removed from the ordinance. Mr. Hunstock explained that if the sunset provision was removed from the utility tax, the Council would need to decide the percentage of the utility tax. He also explained that if the tax was to increase to a standard tax of 6 the revenue generated would be approximately $600,000 annually. Councilmember Hernandez requested clarification as to how much revenue the City would generate by the additional 3 Mr. Hunstock explained the City could generate approximately $300,000. Councilmember Hernandez indicated she likes that the increase is not instantly passed on to the residents, and feels this item is something the Council should consider. Councilmember Ekberg indicated he approves of this proposal, and he would like staff to consider extending the sunset provision in Ordinance No. 2258. Councilmember Hougardy explained she would like to review all the potential revenue resources presented by staff before rejecting any of the proposals. She does approve of this proposal and feels the extension of the sunset provision would be beneficial to everyone. Council President Robertson clarified that Council consensus existed to implement this utility tax, and requested a recommendation from the administration as to the preferred date for implementation (July 2010 or January 1, 2011). Councilmember Quinn asked for a recommendation from the administration. Mayor Haggerton explained that as the Council provides direction on the specific items they would like to move forward, the administration can then provide a more detailed explanation as to the timing and costs associated with each item. Council President Robertson indicated there is Council consensus to move forward with this item. The Council would like to have administration present the pros and cons relating to the timing of implementation and the extension and /or elimination of the sunset provision. Business License Fees: Mr. Hunstock explained the second item for discussion is the potential increase to the business license fees. The increase of business license fees that staff is proposing would generate approximately $160,000 of revenue. The City last updated its business license fee amounts with Ordinance No. 2179 on October 15, 2007. The table below illustrates the current and proposed fee amounts: Number of Businesses Current Fee Proposed Fee Home Occupation 172 50 $100 0 to 20 Employees 1898 $100 $150 21 to 50 Employees 222 $150 $300 51 to 100 Employees 67 $200 $400 101 Employees 63 $300 $600 Total 2422 Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 13 of 15 The proposed fees would generate approximately $160,000 of additional revenue per year. All the fee categories would double, with the exception of the 0 to 20- employee category, which would go from $100 per license to $150. This is the single largest category of business licenses that the City issues. Mr. Hunstock explained other cities in the area charge the following business license fees: SeaTac: $35.00 Seattle: $90.00 Kent: $100.00 Renton: $55.00* 80% of the fee is dedicated to transportation related improvements. Burien: $30.00, $75.00, or $150.00 depending on the number of employees Councilmember Duffie stated he feels the increase associated with a home occupation business is excessive, and he disagrees with it. Councilmember Hernandez asked if the fee would be per employee, and when the fees were last increased. Mr. Hunstock clarified that the proposed fee is per business license, and the fees have not been increased since October 2007. Councilmember Ekberg asked if staff could provide the revenue on these changes if the proposed fee structure was not double, but an incremental change of $150 to $250; $200 to $300 and $300 to $500. Mr. Hunstock indicated he could calculate the new increment and provide the requested information to the Council. Councilmember Quinn inquired if the proposed fee increase would make Tukwila the highest business license fee in the area. Mr. Hunstock clarified the City of Des Moines charges a business license fee on a sliding fee scale of up to $150.00. The City would then be the second highest license fee in the area. Councilmember Quinn explained he is in favor of moving this option forward with a different incremental approach. Councilmember Seal explained the license fee proposal has merit, and she would like to review other options for employee categories. Council President Robertson suggested possibly increasing the fee associated with the larger businesses, rather than doubling the fees for the smaller businesses. Mr. Hunstock explained there are 1,898 businesses in the 0 to 20 employees category and in order to generate any additional revenue through a fee increase, these businesses would be affected. Council President Robertson indicated the Council would like to move this item forward and asked that administration provide different incremental categories, to include the revenue generated in each category. He also asked the administration to provide a recommendation for implementation of the increase in business license fees. Revenue Generatina Reaulatory License (RGRL): Mr. Hunstock explained the RGRL is also known as a head tax. It is being considered with the intent of generating a $2.5 million increase in revenue in the General Fund. The RGRL is a supplemental fee and would be charged in addition to the business license fee. Approximately 27 cities in the state impose a RGRL. State statute allows for a variety of options for implementing the fee, including per employee, per hours worked, square footage of the business, or a combination of these or other factors. The statute also allows for a different fee based on the type of business, as long as every business within a particular classification is charged the same fee. He explained the City of Renton imposes a fee of $55.00 per full time equivalent employee. The City of Redmond imposes a basic fee of $35.00 for the business license and a surcharge of $55.00 per employee, for a total fee of $90.00. The City currently allocates $2.7 million of sales tax from the General Fund to the Street Improvement Fund. If the RGRL were implemented in a similar fashion to the City of Renton or Redmond, it would Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 14 of 15 alleviate the transfer of funding from the General Fund for transportation related improvements. The proposal is to implement a fee of $65.00 per full time equivalent employee, and this would generate approximately $2.5 million additional revenue annually for the General Fund. Council President Robertson explained that he spoke with the City Administrator with the City of Renton about their head tax. He was informed that this program was set to "sunset" a few years ago, and a group of local businesses asked the City to continue with the program because the City could utilize the funds for transportation grant matches. Councilmember Ekberg explained that the trend in the private sector is to utilize contract employees and those workers would not be a full time equivalent. Mr. Hunstock explained the proposed head tax would not apply to contract employees. Councilmember Hougardy asked if the City could define an employee to include the contract employees as a full time equivalent. Mr. Hunstock explained there are other types of regulatory fees. The fee could also be based on square footage. The plan could be based on two different bases, such as a full time equivalent and square foot tax that would be based on the different type of business space. Councilmember Quinn explained that the RGRL could be implemented instead of an increase in the business license fees. Mr. Hunstock indicated this proposal would generate the most revenue for the City, and the City could charge a base license fee and the head tax. Councilmember Hernandez inquired about the Regulatory License structure. She asked if the tax would be required based on full time employees or whether the City could base it on half -time employee hours. Mr. Hunstock explained the RGRL is based on the full time equivalent. An employer would be charged half of the set rate for the part time staff. Ms. Hernandez asked about why the City of Seattle repealed their head tax. Mr. Hunstock explained that Seattle has a Business and Occupation Tax, a Business License fee, and a square footage tax. The taxes levied upon the business community were onerous and unbearable for some of the businesses. Ms. Hernandez asked if staff could provide information about what other south end cities are doing for business license fees and assessed taxes. Councilmember Ekberg inquired as to why there are costs for program administration. Mr. Hunstock explained that if this program were to be implemented, it would require one additional staff member to manage the program. Council President Robertson explained he would like more information on a possible RGRL that would be related to the amount of traffic generated. Mr. Hunstock explained he would work with the City Attorney's office on this request. Councilmember Hernandez explained she is not enthusiastic about this proposal and she would not support the proposed $65. She would like to continue the discussion on this topic and learn more about other options and plans that are available. Councilmember Ekberg stated this item could generate the additional revenue needed for the City. Councilmember Seal commented this item is worth pursuing because of the amount of revenue that would be generated. Councilmember Hougardy indicated this item would provide the greatest revenue for the City. She also feels if this item were adopted, dedicating the funding to transportation would be very beneficial to the City. Tukwila City Council Committee of the Whole Minutes April 12, 2010 Page 15 of 15 Transportation Benefit District (TBD) License Tabs: Mr. Hunstock explained the Transportation Benefit District (TBD), with funding through a $20.00 per vehicle license fee, would provide revenue to be dedicated to transportation improvements. The Council can adopt the TBD license fee, as it does not require voter approval. He also clarified that the collected funds can be used for residential streets. After a lengthy discussion, the Council determined there was no consensus to move this item forward. REPORTS Due to the lateness of the hour, the Council dispensed with reports. ADJOURNMENT 11:02 p.m. COUNCIL PRESIDENT ROBERTSON DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED. Dennis Robertson, Council President Melissa Hart, Deputy City Clerk