HomeMy WebLinkAboutCOW 2010-07-12 COMPLETE AGENDA PACKET 134 h, Tukwila City Council Agenda
714 c o 4� COMMITTEE OF THE WHOLE
0
Jim Haggerton, Mayor Councilmembers Joe Duffie Joan Hernandez
Steve Lancaster, City Administrator Allan Ekberg Verna Seal
90: Dennis Robertson, Council President Kathy Hougardy De'Sean Quinn
Monday, July 12, 2010, 7:00 PM Tukwila City Hall Council Chambers
1. CALL TO ORDER PLEDGE OF ALLEGIANCE
2. SPECIAL a. A proclamation recognizing the recipient of the 2010 "Treasures of Tukwila"
PRESENTATIONS award.
b. A proclamation recognizing Parks and Recreation Month. Pg. 1
3. CITIZEN At this time, you are invited to comment on items not included on this agenda
COMMENT (please limit your comments to five minutes per citizen). To comment on an
item listed on this agenda, please save your comments until the issue is presented
for discussion.
4. SPECIAL a. A bond ordinance for Southcenter Parkway construction. Pg.3
ISSUES b. Budget issues: Pg.43
(1) Options for decreasing expenditures and increasing revenue to the
City to include but not limited to revenue generating regulatory license
fee implementation, utility tax changes, business license fee changes,
and permitting fee changes. Discussion shall include consideration of
the amount and timing of implementation of any new fees or changes
to existing fees and /or taxes. (Discussion in public meeting
format.)
(2) Forward ordinances regarding revenue generating regulatory license,
utility tax changes, business license fee changes to the next Regular
Meeting.
c. An amendment to the Doak settlement agreement. Pg.69
d. An ordinance updating and expanding the Sign Code. Pg.101
Please bring your 6/28/10 C.O. W, packet and Sign Code binder,
e. An ordinance adopting the State Building Code. Pg.123
f. A resolution establishing a Seattle Southside Visitors Center Change Fund. Pg.137
5. REPORTS a. Mayor
b. City Council
c. Staff
d. City Attorney
e. Intergovernmental
6. MISCELLANEOUS
7. EXECUTIVE SESSION
8. ADJOURNMENT
Tukwila City Hall is wheelchair accessible.
Reasonable accommodations are available at public hearings with advance notice to the
City Clerk's Office (206- 433- 1800/TDD 206 248 2933). This notice is available at
www.ci.tukwila.wa.us, and in alternate formats with advance notice for those with disabilities.
Tukwila Council meetings are audio taped.
HOW TO TESTIFY
If you would like to address the Council, please go to the podium and state your name and address
clearly for the record. Please observe the basic rules of courtesy when speaking and limit your comments
to five minutes. The Council appreciates hearing from citizens, but may not be able to take immediate
action on comments received until they are referred to a Committee or discussed under New Business.
COUNCIL MEETINGS
No Council meetings are scheduled on the fifth Monday of the month unless prior public notification is
given.
Regular Meetings: The Mayor, elected by the people to a four -year term, presides at all Regular Council
meetings held on the first and third Mondays of each month at 7 PM. Official Council action in the form of
formal motions, adopting of resolutions and passing of ordinances can only be taken at Regular Council
meetings.
Committee of the Whole Meetings: Council members are elected for a four -year term. The Council
president is elected by the Council members to preside at all Committee of the Whole meetings for a one
year term. Committee of the Whole meetings are held the second and fourth Mondays at 7 PM. Issues
discussed are forwarded to the Regular Council meeting for official action.
GENERAL INFORMATION
At each Council meeting citizens are given the opportunity to address the Council on items that are not
included on the agenda during Citizen Comment. Please limit your comments to five minutes.
Special Meetings may be called at any time with proper public notice. Procedures followed are the same
as those used in Regular Council meetings.
Executive Sessions may be called to inform the Council of pending legal action, financial or personnel
matters.
PUBLIC HEARINGS
Public Hearings are required by law before the Council can take action of matters affecting the public
interest such as land -use laws, annexations, rezone requests, public safety issues, etc. Section 2.04.150 of
the Tukwila Municipal Code states the following guidelines for Public Hearings:
1. The proponent shall speak first and is allowed 15 minutes for a presentation.
2. The opponent is then allowed 15 minutes to make a presentation.
3. Each side is then allowed 5 minutes for rebuttal.
4. Citizens who wish to address the Council may speak for 5 minutes each. No one may speak a second
time until everyone wishing to speak has spoken.
5. After each speaker has spoken, the Council may question the speaker. Each speaker can respond to
the question, but may not engage in further debate at this time.
6. After the Public Hearing is closed, the Council may discuss the issue among themselves without
further public testimony. Council action may be taken at this time or postponed to another date.
WHEREAS, parks and recreation programs across the country positively impact
the social and economic health and environmental quality of our communities; and
WHEREAS, parks and recreation activities provide opportunities for young
people to grow and develop into contributing members of their community, and
offer enriching experiences and create lifelines for older community members; and
WHEREAS, America has celebrated July as the nation's official Park and
Recreation Month since 1985, and for 2010 the National Recreation and Park
Association has chosen the theme "Celebrate, Advocate, Recreate! and
WHEREAS, parks and recreation programs provide outlets for physical
activities, socialization and stress reducing experiences, which aid in the prevention
of chronic disease and improve the mental and emotional health of the citizens of
our community; and
WHEREAS, our parks, nature trails, open spaces, historic sites, golf course,
aquatic center, community center and festivals make Tukwila an attractive and
desirable place to live, work, play and visit, which in turn contribute to its economic
vitality through increased business activity, property values and tourism; and
WHEREAS, parks and natural recreation areas are fundamental to Tukwila's
environmental well-being by providing a habitat for wildlife, improving air quality,
and providing vegetative buffers to development; and
WHEREAS, the City of Tukwila is proud of its parks and recreation programs,
events and facilities, and recognizes their contribution toward providing healthy
places to recreate, learn and grow, and build confidence and self esteem;
NOW, THEREFORE, I, Jim Haggerton, Mayor of the City of Tukwila, do hereby
proclaim July 2010:
Office of the Mayor
Tukwila, Washington
PROCLAMATION
2
Fund Source:
Comments.
MTG. DATE
I 7/12/10
EXPENDITURE REQUIRED
7/19/10
COUNCIL AGENDA SYNOPSIS
Initials
Meetznn Date Prepared by May d`iem _council review
07/12/10 SH 7- wit/re
07/19/10 SH
ITEM INFORMATION
ORIGINAL AGENDA DATE: JULY 12, 2010
ITEM NO.
Li 4,
CAS NUMBER: 10-079
AGENDA ITEM TITLE Ordinance authorizing the issuance of general obligation bonds for the construction
of Southcenter Parkway in the recently annexed area located in Tukwila South, and
for the purchase of capital and other equipment for emergency preparedness.
CATEGORY Discussion Motion Resolution Ordinance Bzd Award Public Hearing Other
Mtg Date 7/12/10 Mtg Date Mtg Date Mtg Date 7/19/10 Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P Police PW
SPONSOR'S City Council is being asked to approve an ordinance authorizing issuance of general
SUMMARY obligation bonds for the construction of Southcenter Parkway in the Tukwila South
development area, as well as the purchase of capital and other equipment for emergency
preparedness and response.
This item is scheduled for Council consideration at the 7/12/10 COW and 7/19/10 Regular
Council meetina.
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
n Utilities Cmte Arts Comm. Parks Comm. Planting Comm.
DA I.E: 07/07/2010
RECOMMENDATIONS:
SPONSOR /ADMIN. Mayor's Office
COMMIT TEE Unanimous approval Forward to COW
COST IMPACT L FUND SOURCE
AMOUNT BUDGETED
RECORD OF COUNCIL ACTION
APPROPRIATION REQUIRED
MTG. DATE ATTACHMENTS
7/12/10 Informational Memorandum dated 7/1/2010
Bond Ordinance
Southcenter Parkway spreadsheet, from 4/12/10 COW packet
Emergency Preparedness Capital Asset List, dated 6/30/10
Summary Table
Minutes from the 6/8/10 and 7/7/10 Finance and Safety Committee Meetings
4
City of Tukwila
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Shawn Hunstock, Finance Director
DATE: July 1, 2010
SUBJECT: Bond Ordinance
ISSUE
BACKGROUND
DISCUSSION
Jim Haggerton, Mayor
At the June 8, 2010 Finance and Safety Committee meeting, Council members asked
staff for additional information regarding the specific capital equipment that was
included in the draft ordinance. Council members also asked for information regarding
the possibility of splitting the ordinance into two parts, one for the Tukwila South
construction project and one for the emergency preparedness and response equipment.
The City Council, at its May 17, 2010 meeting, approved the acceptance of nearly $12
million in state grant funding related to Tukwila South. The state funding, in addition to
nearly $3.7 million in federal funding, will be used along with bonded indebtedness to
fund realignment and construction of Southcenter Parkway.
In addition to providing bond funding for the Southcenter Parkway project, the
administration is proposing purchase equipment related to flood planning, response and
mitigation.
An updated equipment listing is included with this Information Memorandum. The
departments were asked to again review the equipment list and provide background
and justification for why the equipment was needed, if we would otherwise purchase it if
it was not funded through bond proceeds, and if so, what the funding source would be.
As you can see from the updated list, some items were removed and the quantity of
some items was changed. In all cases, the equipment was something not currently
budgeted for by the department, and no other identifiable funding was known at this
time. Changes to the list decreased the amount of equipment to be bonded for from
$1,544,231 to $1,530,965.
Regarding the possibility of splitting the bond ordinance into two separate ordinances,
we inquired about the implications of doing so with Hugh Spitzer at Foster Pepper and
5
6
INFORMATIONAL MEMO
Page 2
Lindsay Sovde at Seattle Northwest Securities. They both recommended against
splitting the bond ordinance. Doing so would require two separate smaller bond series,
both of which could be sold as either taxable or tax exempt, or both, creating potentially
four bond series. This would result in a bond series too small for them to market. The
smaller bond series would also result in higher interest costs to the City. Over the life of
the 15 year bonds, an increase in the interest rate of only 0.25% would result in an
increase in the interest costs of over $135,000. The separate smaller bond issues would
also increase issuance costs. They estimated the costs to be 5% higher, which if the
total issuance costs are $200,000, the resulting increase would be about $10,000.
Both Hugh and Lindsay recommended having the discussion about the capital items
and make any necessary changes to the list, but leaving the ordinance as is. Lindsay
also indicated that a short delay would not necessarily increase costs, but going over 30
days would more than likely require us to pay Moody's for a second rating fee, which
would be about $5,000. Selling the bonds on July 19th, if approved at the Regular
Council meeting that night, would be within that thirty day window.
A ratings presentation for the City was conducted on June 1, 2010 with Moody's
Investors Service. The presentation went very well, and Moody's showed particular
interest in the City's recently adopted reserve policy. Moody's affirmed our existing
credit rating based on the amount of fund balance and other reserves available to the
City. The bonds are currently scheduled for pricing on July 19, 2010.
RECOMMENDATION
The Council is being asked to approve the ordinance providing for issuance of the new
bonds, and authorizing the Mayor to execute a continuing disclosure agreement.
This item is scheduled to be discussed at the July 7, 2010 Finance and Safety
Committee meeting, the July 12 Committee of the Whole meeting, and the July 19
Regular meeting.
ATTACHMENTS
Bond Ordinance
Information Memo, dated June 3, 2010, from Shawn Hunstock
Southcenter Parkway spreadsheet, from April 12, 2010 C.O.W packet
Emergency Preparedness Capital Asset List, dated June 30, 2010
Minutes from the June 8, 2010 Finance and Safety Committee Meeting
W InfoMemos \BondOrdinance07072010.doc
Bonds.
W. Word Processing Ordinances \General Obligation Bonds.docx
KS:ksn 06 /02/2010
DRAFT
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, RELATING TO CONTRACTING INDEBTEDNESS;
PROVIDING FOR THE ISSUANCE OF $1,600,000 PAR VALUE OF LIMITED
TAX GENERAL OBLIGATION BONDS, SERIES 2010A, AND $4,400,000 PAR
VALUE LIMITED TAX GENERAL OBLIGATION BONDS, SERIES 2010B
(TAXABLE BUILD AMERICA BONDS DIRECT PAYMENT), OF THE CITY
FOR GENERAL CITY PURPOSES TO PROVIDE FUNDS WITH WHICH TO
PAY THE COST OF SOUTHCENTER PARKWAY IMPROVEMENTS AND
EMERGENCY RESPONSE CAPITAL EQUIPMENT; FIXING THE DATE,
FORM, MATURITIES, INTEREST RATES, TERMS AND COVENANTS OF
THE BONDS; ESTABLISHING A BOND REDEMPTION FUND AND
PROJECT FUNDS; PROVIDING FOR THE PURCHASE OF BOND
INSURANCE; AND APPROVING THE SALE AND PROVIDING FOR THE
DELIVERY OF THE BONDS TO SEATTLE NORTHWEST SECURITIES
CORPORATION OF SEATTLE, WASHINGTON; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City of Tukwila, Washington (the "City is in need of carrying out
the "Projects" (as that term is hereinafter defined), the estimated cost of which is
$6,000,000 and the City does not have available sufficient funds to pay the cost; and
WHEREAS, the City Council deems it to be in the best interest of the City to borrow
money by the issuance of limited tax general obligation bonds (the "Bonds
authorized herein for general City purposes, to provide funds to carry out the Projects
and to pay the costs of issuance of the Bonds; and
WHEREAS, Seattle- Northwest Securities Corporation has offered to purchase the
Bonds authorized herein under the terms and conditions set forth in this ordinance in
the form of a bond purchase contract;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Definitions. For the purposes of this ordinance the words or phrases
defined in this section shall have the following meanings:
1. "Bond Fund" means the Limited Tax General Obligation Bond Fund, 2010,
created by this ordinance for the payment of the Bonds.
2. "Bond Register" means the books or records maintained by the Bond
Registrar containing the name and mailing address of the owner of each Bond and the
principal amount and number of Bonds held by each owner.
3 "Bond Registrar" means the Fiscal Agent.
4. "Bonds" means, collectively, the Series 2010A Bonds and the Series 2010B
5 "City" means the City of Tukwila, Washington, a municipal corporation
duly organized and existing under and by virtue of the laws of the state of Washington.
6. "Code" means the United States Internal Revenue Code of 1986, as amended,
and applicable rules and regulations promulgated thereunder
Page 1 of 13
7
8
7. `DTC" means The Depository Trust Company, New York, New York.
8 "Finance Director" means the Finance Director of the City
9. "Fiscal Agent" means the fiscal agent of the State of Washington, as the same
may be designated by the State from time to time.
10. "Letter of Representations" means the Blanket Issuer Letter of
Representations dated October 18, 1999, between the City and DTC, as it may be
amended from time to time.
11 "MSRB" means the Municipal Securities Rulemaking Board.
12. "Projects" means Southcenter Parkway Improvements and Emergency
Response Capital Equipment.
13 "Project Funds" means, collectively, the Southcenter Parkway Construction
Fund, the Strander Boulevard Construction Fund and the Emergency Capital Fund,
each created by this ordinance.
14. "Rating Agency" means the nationally recognized rating agency or agencies,
if any, at the time rating the Bonds at the request of the City.
15 "SEC" means the United States Securities and Exchange Commission.
16 "Series 2010A Bonds" means the $1,600,000 par value Limited Tax General
Obligation Bonds, Series 2010A, of the City issued pursuant to and for the purposes
provided in this ordinance.
17 "Series 2010B Bonds" means the $4,400,000 par value Limited Tax General
Obligation Bonds, Series 2010B (Taxable Build America Bonds Direct Payment), of the
City issued pursuant to and for the purposes provided in this ordinance.
Section 2. Debt Capacity. The assessed valuation of the taxable property within the
City as ascertained by the last preceding assessment for City purposes for the calendar
year 2010 is $4,982,452,351, and the City has outstanding general indebtedness
evidenced by limited tax general obligation bonds, notes, leases or conditional sales
contracts in the principal amount of $25,876,800 incurred within the limit of up to 1-
1/2% of the value of the taxable property within the City permitted for general
municipal purposes without a vote of the qualified voters therein, has no outstanding
unlimited tax general obligation bonds issued pursuant to a vote of the qualified voters
of the City; and the amount of indebtedness for which the Bonds are authorized herein
to be issued is $6,000,000.
Section 3. Authorization of Bonds. The City shall borrow money on the credit of the
City and issue negotiable limited tax general obligation bonds evidencing that
indebtedness in the aggregate principal amount of $6,000,000 for general City purposes
to provide the funds to pay the cost of the Projects and to pay the costs of issuance and
sale of the Bonds (the "costs of issuance The general indebtedness to be incurred
shall be within the limit of up to 1 -1/2% of the value of the taxable property within the
City permitted for general municipal purposes without a vote of the qualified voters
therein.
Section 4. Description of Bonds.
A. The Series 2010A Bonds shall be called Limited Tax General Obligation Bonds,
Series 2010A, of the City and shall be issued in the aggregate principal amount of
$1,600,000. The Series 2010B Bonds shall be called Limited Tax General Obligation
Bonds, Series 2010B (Taxable Build America Bonds Direct Payment), of the City and
shall be issued in the aggregate principal amount of $4,400,000 The Bonds shall be
dated the date of their initial delivery; shall be in the denomination of $5,000 or any
integral multiple thereof within a single series and maturity; shall be numbered
separately in the manner and with any additional designation as the Bond Registrar
deems necessary for purposes of identification, shall bear interest (computed on the
basis of a 360 -day year of twelve 30 -day months) payable semiannually on each June 1
and December 1, commencing June 1, 2010, to the maturity or earlier redemption of the
W: \Word Processing\ Ordinances General Obligation Bonds docx
KS:ksn 06/02/2010
Page 2 of 13
Bonds; and shall mature on December 1 in years and amounts and bear interest at the
rates per annum as follows:
Series 2010A Bonds Series 2010B Bonds
Maturity Interest Maturity Interest
Years Amounts Rates Years Amounts Rates
2010
2011
2012
2013
2014
2015
B The life of the capital facilities financed with the proceeds of the Bonds exceeds
the term of the Bonds.
Section 5. Registration and Transfer of Bonds.
A. The Bonds shall be issued only in registered form as to both principal and
interest and shall be recorded on the Bond Register The Bond Register shall contain the
name and mailing address of the owner of each Bond and the principal amount and
number of each of the Bonds held by each owner
B. Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any
authorized denomination of an equal aggregate principal amount and of the same
series, interest rate and maturity Bonds may be transferred only if endorsed in the
manner provided thereon and surrendered to the Bond Registrar Any exchange or
transfer shall be without cost to the owner or transferee. The Bond Registrar shall not
be obligated to exchange or transfer any Bond during the 15 days preceding any
principal payment or redemption date.
C. The Bonds initially shall be registered in the name of Cede Co., as the nominee
of DTC. The Bonds so registered shall be held in fully irr mobilized form by DTC as
depository in accordance with the provisions of the Letter of Representations. Neither
the City nor the Bond Registrar shall have any responsibility or obligation to DTC
participants or the persons for whom they act as nominees with respect to the Bonds
regarding accuracy of any records maintained by DTC or DTC participants of any
amount in respect of principal of or interest on the Bonds, or any notice which is
permitted or required to be given to registered owners hereunder (except such notice as
is required to be given by the Bond Registrar to DTC)
D For as long as any Bonds are held in fully immobilized form, DTC, its nominee or
its successor depository shall be deemed to be the registered owner for all purposes
hereunder and all references to registered owners, bondowners, bondholders or the like
shall mean DTC or its nominee and, except for the purpose of the City's undertaking
herein to provide continuing disclosure, shall not mean the owners of any beneficial
interests in the Bonds. Registered ownership of such Bonds, or any portions thereof,
may not thereafter be transferred except:
1. to any successor of DTC or its nominee, if that successor shall be qualified
under any applicable laws to provide the services proposed to be provided by it;
2. to any substitute depository appointed by the City or such substitute
depository's successor; or
3 to any person if the Bonds are no longer held in immobilized form.
E. Upon the resignation of DTC or its successor (or any substitute depository or its
successor) from its functions as depository, or a determination by the City that it no
longer wishes to continue the system of book entry transfers through DTC or its
successor (or any substitute depository or its successor), the City may appoint a
substitute depository Any such substitute depository shall be qualified under any
applicable laws to provide the services proposed to be provided by it.
W: \Word Processing Ordinances General Obligation Bonds.docx
KS:ksn 06/02/2010
Page 3 of 13
9
10
F. If 1) DTC or its successor (or substitute depository or its successor) resigns from
its functions as depository, and no substitute depository can be obtained, or 2) the City
determines that the Bonds are to be in certificated form, the ownership of Bonds may be
transferred to any person as provided herein and the Bonds no longer shall be held in
fully immobilized form.
Section 6. Payment of Bonds. Both principal of and interest on the Bonds shall be
payable in lawful money of the United States of America. Interest on the Bonds shall be
paid by checks or drafts of the Bond Registrar mailed on the interest payment date to
the registered owners at the addresses appearing on the Bond Register on the 15th day
of the month preceding the interest payment date or, if requested in writing by a
registered owner of Bonds prior to the applicable record date, by wire transfer on the
interest payment date, provided that costs of the electronic transfer will be paid by the
requesting registered owner. Principal of the Bonds shall be payable upon presentation
and surrender of the Bonds by the registered owners to the Bond Registrar.
Notwithstanding the foregoing, for as long as the Bonds are registered in the name of
DTC or its nominee, payment of principal of and interest on the Bonds shall be made in
the manner set forth in the Letter of Representations.
Section 7. Redemption Provisions and Open Market Purchase of Bonds.
A. Optional Redemption. The Series 2010A Bonds shall be issued without the right
or option of the City to redeem the Series 2010A Bonds prior to their stated maturity
dates. The City reserves the right and option to redeem the Series 2010B Bonds
maturing on or after December 1, 2020, prior to their stated maturity dates at any time
on or after December 1, 2019, as a whole or in part, at a price equal to the principal
amount to be redeemed, without premium, plus accrued interest to the date fixed for
redemption.
B. Extraordinary Optional Redemption. The City additionally reserves the right
and option to redeem the Series 2010B Bonds prior to their stated maturity dates at any
time prior to December 1, 2019, as a whole or in part, upon the occurrence of an
Extraordinary Event, at the Extraordinary Optional Redemption Price.
1 An "Extraordinary Event" will have occurred if the City determines that a
material adverse change has occurred to Section 54AA or Section 6431 of the Code or
there is any guidance published by the Internal Revenue Service or the United States
Treasury with respect to such Sections or any other determination by the Internal
Revenue Service or the United States Treasury, which determination is not the result of
any act or omission by the City to satisfy the requirements to qualify to receive the 35%
cash subsidy payment from the United States Treasury, pursuant to which the City's
35% cash subsidy payment from the United States Treasury is reduced or eliminated.
2. "Extraordinary Optional Redemption Price" means the greater of:
a) 100% of the principal amount of the Series 2010B Bonds to be redeemed;
or
b) the sum of the present values of the remaining scheduled payments of
principal of and interest to the stated maturity date on the Series 2010B Bonds to be
redeemed, discounted to the date on which such Series 2010B Bonds are to be redeemed
on a semi- annual basis, assuming a 360 -day year consisting of twelve 30 -day months, at
the Treasury Rate plus 100 basis points, plus, in each case, accrued interest on the Series
2010B Bonds to be redeemed to the date fixed for redemption.
3 "Treasury Rate" means, with respect to any date fixed for redemption for a
particular Series 2010B Bond, the yield to maturity as of such date of United States
Treasury securities with a constant maturity (excluding inflation indexed securities, and
as compiled and published in the most recent Federal Reserve Statistical Release H.15
(519) that has become publicly available as of the first business day that is at least two
business days prior to such date or, if such Statistical Release is no longer published,
any publicly available source of similar market data) most nearly equal to the period
from such date to the stated maturity date of such Series 2010B Bond.
W Word Processing \Ordinances \General Obligation Bonds.doc,
KS:ksn 06/02/2010
Page 4 of 13
4. At the request of the Bond Registrar, the Extraordinary Optional Redemption
Price shall be determined by an independent accounting firm, investment banking firm
or financial advisor retained by the City at the City's expense. Absent manifest error,
such determination shall be conclusive and binding on the City, the Bond Registrar and
the Registered Owners, and neither the City nor the Bond Registrar shall be liable for
relying on such determination.
C. Mandatory Redemption.
1. The Series 20105 Bonds maturing in 20_ and 20_ are Term Bonds and, if not
redeemed under the optional or extraordinary optional redemption provisions set forth
above or purchased in the open market under the provisions set forth below, shall be
called for redemption randomly (in such manner as the Bond Registrar shall determine)
at par plus accrued interest on December 1 in years and amounts as follows:
2010B Term Bonds Maturing 2010B Term Bonds Maturity
in 20 in 20_
Mandatory Mandatory
Redemption Mandatory Redemption Mandatory
Dates Redemption Dates Redemption
(December 1) Amounts (December 1) Amounts
Maturity
2. If the City redeems under Section 7.A or B, purchases in the open market or
defeases Term Bonds, the par amount of the Term Bonds so redeemed, purchased or
defeased (irrespective of their actual redemption or purchase prices) shall be credited
against one or more scheduled mandatory redemption amounts for those Term Bonds.
The City shall determine the manner in which the credit is to be allocated and shall
notify the Bond Registrar in writing of its allocation at least 60 days prior to the earliest
mandatory redemption date for that maturity of Term Bonds for which notice of
redemption has not already been given.
D. Partial Redemption of Bonds. Portions of the principal amount of any Bond, in
installments of $5,000 or any integral multiple thereof, may be redeemed. If less than all
of the principal amount of any Bond is redeemed, upon surrender of that Bond to the
Bond Registrar, there shall be issued to the registered owner, without charge therefor, a
new Bond (or Bonds, at the option of the registered owner) of the same series, maturity
and interest rate in any of the denominations authorized by this ordinance in the
aggregate principal amount remaining unredeemed.
E. Open Market Purchase. The City further reserves the right and option to
purchase any or all of the Bonds in the open market at any time at any price plus
accrued interest to the date of purchase.
F Selection of Bonds for Redemption. If fewer than all of the outstanding Series
2010B Bonds are to be redeemed prior to maturity, then (a) if the Series 2010B Bonds are
in book -entry form at the time of such redemption, the Bond Registrar shall instruct
DTC to instruct the DTC participants to select the specific Series 2010B Bonds for
redemption pro rata, and neither the City nor the Bond Registrar shall have any
responsibility to ensure that DTC or the DTC participants properly select such Series
2010B Bonds for redemption, and (b) if the Series 20105 Bonds are not then in book
entry form at the time of such redemption, on each date fixed for redemption, the Bond
Registrar shall select the specific Series 2010B Bonds for redemption pro rata. The
portion of any Series 2010B Bonds of a denomination more than $5,000 to be redeemed
shall be in the principal amount of $5,000 or any integral multiple thereof. The Bond
W \Word Processing\ Ordinances \General Obligation Bonds.docx
KS:ksn 06/02/2010
Page 5of13
11
12
Registrar shall select such portions of Series 2010B Bonds to be redeemed in such
manner as the Bond Registrar in its discretion may deem to be fair and appropriate.
Notwithstanding the foregoing, for as long as the Series 2010B Bonds are registered in
the name of DTC or its nominee, selection of Series 2010B Bonds for redemption shall be
in accordance with the Letter of Representations.
G. Cancellation of Bonds. All Bonds purchased or redeemed under this section
shall be canceled.
Section 8. Notice of Redemption.
A. While the Bonds are held by DTC in book -entry only form, any notice of
redemption shall be given at the time, to the entity and in the manner required by DTC
in accordance with the Letter of Representations, and the Bond Registrar shall not be
required to give any other notice of redemption. If the Bonds cease to be in book -entry
only form, the City shall cause notice of any intended redemption of Bonds to be given
by the Bond Registrar not less than 30 nor more than 60 days prior to the date fixed for
redemption by first -class mail, postage prepaid, to the registered owner of any Bond to
be redeemed at the address appearing on the Bond Register at the time the Bond
Registrar prepares the notice, and the requirements of this sentence shall be deemed to
have been fulfilled when notice has been mailed as so provided, whether or not it is
actually received by the owner of any Bond.
B In the case of an optional redemption, the notice may state that the City retains
the right to rescind the redemption notice and the related optional redemption of Bonds
by giving a notice of rescission to the affected registered owners at any time prior to the
scheduled optional redemption date. Any notice of optional redemption that is so
rescinded shall be of no effect, and the Bonds for which the notice of optional
redemption has been rescinded shall remain outstanding.
C. Interest on Bonds called for redemption shall cease to accrue on the date fixed for
redemption unless the Bond or Bonds called are not redeemed when presented
pursuant to the call. In addition, the redemption notice shall be mailed within the same
period, postage prepaid, to the MSRB and to such other persons and with such
additional information as the Finance Director shall determine, but these additional
mailings shall not be a condition precedent to the redemption of Bonds.
Section 9. Failure to Redeem Bonds. If any Bond is not redeemed when properly
presented at its maturity or call date, the City shall be obligated to pay interest on that
Bond at the same rate provided in the Bond from and after its maturity or call date until
that Bond, both principal and interest, is paid in full or until sufficient money for its
payment in full is on deposit in the Bond Fund and the Bond has been called for
payment by giving notice of that call to the registered owner of each of those unpaid
Bonds.
Section 10. Pledge of Taxes. For as long as any of the Bonds are outstanding, the
City irrevocably pledges to include in its budget and levy taxes annually within the
constitutional and statutory tax limitations provided by law without a vote of the
electors of the City on all of the taxable property within the City in an amount sufficient,
together with other money legally available and to be used therefor (including the
federal credit payments described in the following sentence), to pay when due the
principal of and interest on the Bonds, and the full faith, credit and resources of the City
are pledged irrevocably for the annual levy and collection of those taxes and the prompt
payment of that principal and interest.
Section 11. Form and Execution of Bonds.
A. The Bonds shall be prepared in a form consistent with the provisions of this
ordinance and state law and shall be signed by the Mayor and City Clerk, either or both
of whose signatures may be manual or in facsimile, and the seal of the City or a
facsimile reproduction thereof shall be impressed or printed thereon.
W.\ Word Processing Ordinances \Genera] Obligation Bonds.docx
KS:ksn 06/02/2010
Page 6of13
B Only Bonds bearing a Certificate of Authentication in the following form,
manually signed by the Bond Registrar, shall be valid or obligatory for any purpose or
entitled to the benefits of this ordinance:
CERTIFICAl i OF AUTHENTICATION
This Bond is one of the fully registered City of Tukwila, Washington, Limited Tax
General Obligation Bonds, (Series 2010A/Series 2010E (Taxable Build America Bonds
Direct Payment)), described in the Bond Ordinance.
WASHINGTON STATE FISCAL AGENT
Bond Registrar
By
Authorized Signer
C. The authorized signing of a Certificate of Authentication shall be conclusive
evidence that the Bond so authenticated has been duly executed, authenticated and
delivered and is entitled to the benefits of this ordinance.
D If any officer whose facsimile signature appears on the Bonds ceases to be an
officer of the City authorized to sign bonds before the Bonds bearing his or her facsimile
signature are authenticated or delivered by the Bond Registrar or issued by the City,
those Bonds nevertheless may be authenticated, issued and delivered and, when
authenticated, issued and delivered, shall be as binding on the City as though that
person had continued to be an officer of the City authorized to sign bonds. Any Bond
also may be signed on behalf of the City by any person who, on the actual date of
signing of the Bond, is an officer of the City authorized to sign bonds, although he or
she did not hold the required office on the date of issuance of the Bonds.
Section 12. Duties of Bond Registrar.
A. The Bond Registrar shall keep, or cause to be kept, sufficient books for the
registration and transfer of the Bonds, which shall be open to inspection by the City at
all times. The Bond Registrar is authorized, on behalf of the City, to authenticate and
deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds
and this ordinance, to serve as the City's paying agent for the Bonds and to carry out all
of the Bond Registrar's powers and duties under this ordinance and City Ordinance No.
1338 establishing a system of registration for the City's bonds and obligations.
B. The Bond Registrar shall be responsible for its representations contained in the
Bond Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may
become the owner of Bonds with the same rights it would have if it were not the Bond
Registrar and, to the extent permitted by law, may act as depository for and permit any
of its officers or directors to act as members of, or in any other capacity with respect to,
any committee formed to protect the rights of Bond owners.
Section 13. Preservation of Tax Exemption for Interest on Series 2010A Bonds. The
City covenants that it will take all actions necessary to prevent interest on the Series
2010A Bonds from being included in gross income for federal income tax purposes, and
it will neither take any action nor make or permit any use of proceeds of the Series
2010A Bonds or other funds of the City treated as proceeds of the Series 2010A Bonds at
any time during the term of the Series 2010A Bonds which will cause interest on the
Series 2010A Bonds to be included in gross income for federal income tax purposes.
The City also covenants that it will, to the extent the arbitrage rebate requirement of
Section 148 of the Code is applicable to the Series 2010A Bonds, take all actions
necessary to comply (or to be treated as having complied) with that requirement in
connection with the Series 2010A Bonds, including the calculation and payment of any
penalties that the City has elected to pay as an alternative to calculating rebatable
arbitrage, and the payment of any other penalties if required under Section 148 of the
W Word Processing Ordinances \General Obligation Bonds.doo,
KS.ksn 06/02/2010
Page 7
13
14
Code to prevent interest on the Series 2010A Bonds from being included in gross
income for federal income tax purposes.
Section 14. Designation of Series 2010A Bonds as "Qualified Tax- Exempt
Obligations." The City has determined and certifies that:
1. the Series 2010A Bonds are not "private activity bonds" within the meaning
of Section 141 of the Code;
2. the reasonably anticipated amount of tax- exempt obligations (other than
private activity bonds and other obligations not required to be included in such
calculation) which the City and any entity subordinate to the City (including any entity
that the City controls, that derives its authority to issue tax- exempt obligations from the
City, or that issues tax- exempt obligations on behalf of the City) will issue during the
calendar year in which the Series 2010A Bonds are issued will not exceed $30,000,000;
and
3. the amount of tax exempt obligations, including the Series 2010A Bonds,
designated by the City as "qualified tax exempt obligations" for the purposes of Section
265(b)(3) of the Code during the calendar year in which the Series 2010A Bonds are
issued does not exceed $30,000,000. The City designates the Series 2010A Bonds as
"qualified tax exempt obligations" for the purposes of Section 265(b)(3) of the Code.
Section 15. Election to Treat Series 2010B Bonds as "Build America Bonds Tax
Covenants.
A. The City hereby irrevocably elects to have Section 54AA of the Code apply to the
Series 2010B Bonds so that the Series 2010B Bonds are treated as "build America
bonds," and further to have Subsection 54AA(g) of the Code apply to the Series 2010B
Bonds so that the Series 2010B Bonds are treated as "qualified bonds" with respect to
which the City will be allowed a credit payable by the United States Treasury to the
City pursuant to Section 6431 of the Code in an amount equal to 35% of the interest
payable on the Series 2010B Bonds on each interest payment date. The City authorizes
and directs the Finance Director (or his or her designee) to take such actions and enter
into such agreements as are necessary or appropriate for the City to receive from the
United States Treasury the applicable federal credit payments in respect of the Series
2010B Bonds, including, but not limited to, entering into a calculation agency agreement
with a calculation agent and the timely filing with the Internal Revenue Service of Form
8038 -CP- "Return for Credit Payments to Issuers of Qualified Bonds" in the manner
prescribed by Internal Revenue Service Notice 2009 -26
B. The City also covenants that it will not take or permit to be taken on its behalf
any action that would adversely affect the entitlement of the City to receive from the
United States Treasury the applicable federal credit payments in respect of the Series
2010B Bonds. Without limiting the generality of the foregoing, the City will comply
with the provisions of the Code, compliance with which would result in the interest on
the Series 2010B Bonds being excluded from gross income for federal tax purposes but
for the City's irrevocable election to have Section 54AA of the Code apply to the Series
2010B Bonds.
Section 16. Refunding or Defeasance of the Bonds.
A. The City may issue refunding bonds pursuant to the laws of the State of
Washington or use money available from any other lawful source to pay when due the
principal of and interest on the Bonds, or any portion thereof included in a refunding or
defeasance plan, and to redeem and retire, refund or defease all such then outstanding
Bonds (hereinafter collectively called the "defeased Bonds and to pay the costs of the
refunding or defeasance. If money and /or "government obligations" (as defined in
chapter 39.53 RCW, as now or hereafter amended) maturing at a time or times and
bearing interest in amounts (together with money, if necessary) sufficient to redeem and
retire, refund or defease the defeased Bonds in accordance with their terms are set aside
in a special trust fund or escrow account irrevocably pledged to that redemption,
W. Word Processing Ordinances General Obligation Bonds. docx
KS:ksn 06/02/2010
Page 8 of 13
retirement or defeasance of defeased Bonds (hereinafter called the "trust account then
all right and interest of the owners of the defeased Bonds in the covenants of this
ordinance and in the funds and accounts obligated to the payment of the defeased
Bonds shall cease and become void. The owners of defeased Bonds shall have the right
to receive payment of the principal of and interest on the defeased Bonds from the trust
account. The City shall include in the refunding or defeasance plan such provisions as
the City deems necessary for the random selection of any defeased Bonds that
constitute less than all of a particular maturity of a series of Bonds, for notice of the
defeasance to be given to the owners of the defeased Bonds and to such other persons
as the City shall determine, and for any required replacement of Bond certificates for
defeased Bonds. The defeased Bonds shall be deemed no longer outstanding, and the
City may apply any money in any other fund or account established for the payment or
redemption of the defeased Bonds to any lawful purposes as it shall determine.
B If the Bonds are registered in the name of DTC or its nominee, notice of any
defeasance of Bonds shall be given to DTC in the manner prescribed in the Letter of
Representations for notices of redemption of Bonds.
Section 17. Bond Fund; Project Funds; and Deposit of Bond Proceeds.
A. The Bond Fund is hereby created and established in the office of the Finance
Director as a special fund designated the Limited Tax General Obligation Bond Fund,
2010, for the purpose of paying principal of and interest on the Bonds. All taxes
collected for and allocated to the payment of the principal of and interest on the Bonds
shall be deposited in the Bond Fund.
B The Project Funds also are hereby created and established in the office of the
Finance Director as special funds designated the Southcenter Parkway Construction
Fund, the Strander Boulevard Construction Fund and the Emergency Capital Fund.
The principal proceeds and premium, if any, received from the sale and delivery of the
Bonds shall be paid into the Project Funds and used to pay the costs of the Projects and
costs of issuance of the Bonds. Until needed to pay such costs, the City may invest
principal proceeds temporarily in any legal investment, and the investment earnings
may be retained in the Project Funds and be spent for the purposes of those funds
except that earnings subject to a federal tax or rebate requirement may be withdrawn
from the Project Funds and used for those tax or rebate purposes. Any amounts
remaining in the Project Funds after payment of the costs of the Projects and costs of
issuance of the Bonds may be used for any other proper City purpose.
Section 18. Approval of Bond Purchase Contract.
A. Seattle Northwest Securities Corporation of Seattle, Washington, has presented a
purchase contract (the "Bond Purchase Contract to the City offering to purchase the
Bonds under the terms and conditions provided in the Bond Purchase Contract, which
written Bond Purchase Contract is on file with the Finance Director and is incorporated
herein by this reference. The City Council finds that entering into the Bond Purchase
Contract is in the City's best interest and therefore accepts the offer contained therein
and authorizes its execution by City officials.
B. The Bonds will be printed at City expense and will be delivered to the purchaser
in accordance with the Bond Purchase Contract, with the approving legal opinion of
Foster Pepper PLLC, municipal bond counsel of Seattle, Washington, regarding the
Bonds.
C. The proper City officials are authorized and directed to do everything necessary
for the prompt delivery of the Bonds to the purchaser and for the proper application
and use of the proceeds of the sale thereof.
Section 19. Preliminary Official Statement Deemed Final. The City Council has
been provided with copies of a preliminary official statement dated
2010 (the "Preliminary Official Statement prepared in connection with the sale of the
Bonds. For the sole purpose of the Bond purchaser's compliance with SEC Rule 15c2-
12(b)(1), the City "deems final" that Preliminary Official Statement as of its date, except
W Word Processing \Ordinances \General Obligation Bonds.docx
KS:ksn 06/02/2010
Page 9 of 13
15
16
for the omission of information as to offering prices, interest rates, selling
compensation, aggregate principal amount, principal amount per maturity, maturity
dates, options of redemption, delivery dates, ratings and other terns of the Bonds
dependent on such matters.
Section 20. Undertaking to Provide Continuing Disclosure. To meet the
requirements of SEC Rule 15c2- 12(b)(5) (the "Rule as applicable to a participating
underwriter for the Bonds, the City makes the following written undertaking (the
"Undertaking for the benefit of holders of the Bonds:
1. Undertaking to Provide Annual Financial Information and Notice of
Material Events. The City undertakes to provide or cause to be provided, either
directly or through a designated agent, to the MSRB, in an electronic format as
prescribed by the MSRB, accompanied by identifying information as prescribed by the
MSRB:
difficulties;
difficulties,
perform;
a. Annual financial information and operating data of the type included in
the final official statement for the Bonds and described in subsection 2 of this section
"annual financial information
b Timely notice of the occurrence of any of the following events with respect
to the Bonds, if material.
(1) principal and interest payment delinquencies;
(2) non- payment related defaults;
(3) unscheduled draws on debt service reserves reflecting financial
(4) unscheduled draws on credit enhancements reflecting financial
(5) substitution of credit or liquidity providers, or their failure to
(6) adverse tax opinions or events affecting the tax exempt status of the
Series 2010A Bonds;
(7) modifications to rights of holders of the Bonds;
(8) Bond calls (other than scheduled mandatory redemptions of Term
Bonds);
Bonds; and
bonds;
(9) defeasances;
(10) release, substitution, or sale of property securing repayment of the
(11) rating changes.
c. Timely notice of a failure by the City to provide required annual financial
information on or before the date specified in subsection 2 of this section.
2. Type of Annual Financial Information Undertaken to be Provided. The
annual financial information that the City undertakes to provide in subsection 1 of this
section:
a. Shall consist of:
(1) annual financial statements prepared (except as noted in the financial
statements) in accordance with the generally accepted accounting principles applicable
to Washington State local governmental units, as such principles may be changed from
time to time, which statements shall not be audited, except, however, that if and when
audited financial statements are otherwise prepared and available to the City they will
be provided,
(2) authorized, issued and outstanding balance of general obligation
W. Word Processing\ Ordinances \General Obligation Bonds.docx
KS:ksn 06/02/2010
Page 10 of 13
(3) assessed valuation of property within the City for the fiscal year; and
(4) regular property tax levy rate and regular property tax levy rate limit
for the fiscal year;
b. Shall be provided not later than the last day of the ninth month after the
end of each fiscal year of the City (currently, a fiscal year ending December 31), as such
fiscal year may be changed as required or permitted by State law, commencing with the
City's fiscal year ending December 31, 2009; and
c. May be provided in a single or multiple documents, and may be
incorporated by specific reference to documents available to the public on the Internet
website of the MSRB or filed with the SEC.
3 Amendment of Undertaking. The Undertaking is subject to amendment after
the primary offering of the Bonds without the consent of any holder of any Bond, or of
any broker, dealer, municipal securities dealer, participating underwriter, rating agency
or the MSRB, under the circumstances and in the manner permitted by the Rule. The
City will give notice to the MSRB of the substance (or provide a copy) of any
amendment to the Undertaking and a brief statement of the reasons for the amendment.
If the amendment changes the type of annual financial information to be provided, the
annual financial information containing the amended financial information will include
a narrative explanation of the effect of that change on the type of information to be
provided.
4. Beneficiaries. The Undertaking evidenced by this section shall inure to the
benefit of the City and any holder of Bonds, and shall not inure to the benefit of or
create any rights in any other person.
5 Termination of Undertaking. The City's obligations under this Undertaking
shall terminate upon the legal defeasance of prior redemption or payment in full of all
the then outstanding Bonds. In addition, the City's obligations under this Undertaking
shall terminate if those provisions of the Rule which require the City to comply with
this Undertaking become legally inapplicable in respect of the Bonds for any reason, as
confirmed by an opinion of nationally recognized bond counsel or other counsel
familiar with federal securities laws delivered to the City, and the City provides timely
notice of such termination to the MSRB
6 Remedy for Failure to Comply with Undertaking. As soon as practicable
after the City learns of any failure to comply with the Undertaking, the City will
proceed with due diligence to cause such noncompliance to be corrected. No failure by
the City or other obligated person to comply with the Undertaking shall constitute a
default in respect of the Bonds. The sole remedy of any holder of a Bond shall be to
take such actions as that holder deems necessary, including seeking an order of specific
performance from an appropriate court, to compel the City or other obligated person to
comply with the Undertaking.
7 Designation of Official Responsible to Administer Undertaking. The
Finance Director (or such other officer of the City who may in the future perform the
duties of that office) or his or her designee is authorized and directed in his or her
discretion to take such further actions as may be necessary, appropriate or convenient
to carry out the Undertaking of the City in respect of the Bonds set forth in this section
and in accordance with the Rule, including, without limitation, the following actions:
a. Preparing and filing the annual financial information undertaken to be
provided,
b. Determining whether any event specified in subsection 1 has occurred,
assessing its materiality with respect to the Bonds, and, if material, preparing and
disseminating notice of its occurrence,
c. Determining whether any person other than the City is an "obligated
person" within the meaning of the Rule with respect to the Bonds, and obtaining from
W:\ Word Processing Ordinances \General Obligation Bonds.doa
KS:ksn 06/02/2010
Page 11 of 13
17
18
such person an undertaking to provide any annual financial information and notice of
material events for that person in accordance with the Rule;
d. Selecting, engaging and compensating designated agents and consultants,
including but not limited to financial advisors and legal counsel, to assist and advise the
City in carrying out the Undertaking; and
e. Effecting any necessary amendment of the Undertaking.
Section 21. Bond Insurance. The City Council finds that it is in the City's best
interest to purchase, and that a savings will result from purchasing, the financial
guaranty insurance policy for the Bonds. The City is hereby authorized to purchase
from the Bond Insurer the financial guaranty insurance policy insuring the prompt
payment of the principal of and interest on the Bonds and agrees to the conditions for
obtaining such policy, including the payment of the premium therefor The Mayor and
the Finance Director are each independently authorized to execute the Bond Insurer's
Commitment to Issue Financial Guaranty Insurance Policy and all other documents on
behalf of the City in connection with the financial guaranty insurance policies.
Section 22. 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 23. 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 thereof 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 General Obligation Bonds.docx
KS:ksn 06/02/2010
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council.
Published.
Effective Date:
Ordinance Number.
Page 12 of 13
CERTIFICATION
I, the undersigned, City Clerk of the City of Tukwila, Washington (the "City
hereby certify as follows:
1. The attached copy of Ordinance No. (the "Ordinance is a full, true and
correct copy of an ordinance duly passed at a special meeting of the City Council of the
City held at the regular meeting place thereof on 2010,
as that ordinance appears on the minute book of the City; and the ordinance will be in
full force and effect five days after publication in the City's official newspaper;
2. Written notice specifying the time and place of the special meeting and noting
the business to be transacted was given to all members of the City Council by mail or by
personal delivery at least 24 hours prior to the special meeting, a true and complete
copy of which notice is attached hereto as Appendix 1,
3. Written notice of the special meeting was given to each local radio or television
station and to each newspaper of general circulation that has on file with the City a
written request to be notified of special meetings, or to which such notice customarily is
given, and
4. A quorum of the members of the City Council was present throughout the
meeting and a majority of those members present voted in the proper manner for the
passage of the ordinance.
IN WITNESS WHEREOF, I have hereunto set my hand this day of
2010
W Word Processing\ Ordinances \General Obligation Bonds.docx
KS:ksn 06/02/2010
CITY OF TUKWILA, WASHINGTON
Christy O'Flaherty, CMC, City Clerk
Page 13 of 13
19
20
TO:
City of Tukwila
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance and Safety Committee
FROM: Shawn Hunstock, Finance Director
DATE: June 3, 2010
SUBJECT: Bond Ordinance
ISSUE
Jim Haggerton, Mayor
Section 4.3.7 of the Tukwila South Development Agreement (DA) calls for the City to
issue up to $8.25 million in general obligation bonds for construction of Southcenter
Parkway within the newly annexed area. All funding arrangements for the construction
project, including securing the bonds, is to be accomplished by December 31, 2010
according to the DA.
BACKGROUND
The City Council, at its May 17, 2010 meeting, approved the acceptance of nearly $12
million in state grant funding related to Tukwila South. The state funding, in addition to
nearly $3.7 million in federal funding, will be used along with bonded indebtedness to
fund realignment and construction of Southcenter Parkway.
In addition to providing bond funding for the Southcenter Parkway project, the
administration is proposing to reimburse the City for previously incurred expenses
related to flood planning, response and mitigation, as well as fund some related projects
that have not occurred yet. The City Council on December 7, 2009 adopted Resolution
No. 1702, thereby approving reimbursement for flood related expenses from bond
funding to occur later.
It should be noted that the City originally intended to bond this year for up to $1.9 million
in expenses related to the Strander Boulevard project. Due to uncertainties related to
funding for the project and the likelihood of rail line relocation, a key component of an
overpass or underpass, the project is on hold indefinitely at this time.
DISCUSSION
According to Section 4.8.2 of the DA, the City will use increased property tax revenue
from the annexation area to pay debt service costs on the first $6 million in bonding
required to fund the Southcenter Parkway construction project. If it is necessary to issue
more than $6 million in bonds, the DA states that the developer will pay for the
21
INFORMATIONAL MEMO
Page 2
additional debt service costs, up to a total of $8.25 million in bonds. Should the
increased property tax revenue more than cover the cost of debt service, this additional
amount is available to the City's General Fund for regular operating expenses.
According to the total project funding recently approved by Council, the Southcenter
Parkway construction project will include $3,678,627 in federal funding, $11,980,000 in
state funding, and $4,355,930 in bond funding. The total project costs are $19,714,557
plus $300,000 in City construction management, for a combined total of $20,014,557.
Because the amount of bond funding needed is Tess than $6 million, according to the
DA, the City will be responsible for debt service on this portion of the bond issue. Future
property tax increases will be used to pay for this portion of the debt service, currently
estimated to be approximately $382,000 annually, depending on the final structure of
the bond sale. At the City's current property tax levy rate of $2.67 per $1,000 of
assessed value, it would take an increase of just over $143 million in assessed value
from the annexation area to pay for the annual debt service of $382,000.
In addition to providing funding for the Southcenter Parkway, the administration is
proposing to use additional bond proceeds to reimburse the City for previously incurred
flood related expenses, as well as some needed purchases and facility upgrades for
flood response and mitigation purposes. A detailed list of previously incurred and
proposed expenses is attached to this information memorandum. The items are capital
in nature, and are part of an overall $3.2 million the City has spent on flood related
expenses since last fall. The total amount of flood related expenses proposed for bond
funding is $1,544,231. The administration has determined that these items are above
and beyond the normal operating expenses of the City, and the City's bond counsel has
made a preliminary determination that these items are eligible for bond funding.
Two of the emergency response capital equipment items impact the budget reductions
recently reviewed by Council for the Information Technology department. The Microsoft
Enterprise Agreement (EA) for MS Office, MS Exchange email using MS Outlook plus
other software products will not at first decrease the annual budget needed for MS
Office license purchases, but will immediately provide consistency with standardized
versions for all PCs and laptops. Currently a new Office license is purchased every time
a new computer is purchased, one quarter of the total per year allowing for differing
versions throughout the departments. The EA will essentially give the City a site license
for MS Office and other products, decreasing the current annual licensing costs for the
IT department after the first three years and into the future. Software standardization will
also decrease IT staff costs for software and hardware deployment. Training costs will
be lowered with standardized software; the EA includes vouchers for IT staff technical
training on the covered software plus online training for all users. The annual savings
after the first three years for this item is estimated to be $27,000. The other item that
impacts the IT budget reductions is the phone system replacement. Most of the required
software for this new voice over IP phone technology system is included in the EA and
will decrease the annual telephone system maintenance costs by approximately
$30,000. The hardware costs and system maintenance through IT staff or outside
consultants will be less than our current aging phone system once the new system is in
place. Both items will provide the ability for system redundancy, disaster recovery and
backup communications for our network infrastructure.
2 2 W InfoMemos \TukSoBondOrdinanceREVISED_1 doc
INFORMATIONAL MEMO
Page 3
The total bond issue for both Southcenter Parkway construction costs ($4,355,930) and
flood related expenses ($1,544,231) is $5,900,161.
A ratings presentation for the City was conducted on June 1, 2010 with Moody's
Investors Service. The presentation went very well, and Moody's showed particular
interest in the City's recently adopted reserve policy. The bonds are currently scheduled
for pricing on June 21, 2010.
RECOMMENDATION
The Council is being asked to approve the ordinance providing for issuance of the new
bonds, and authorizing the Mayor to execute a continuing disclosure agreement.
This item is scheduled to be discussed at the June 8, 2010 Finance and Safety
Committee meeting, the June 14 Committee of the Whole meeting, and the June 21
Regular meeting.
ATTACHMENTS
-Bond Ordinance
Information Memo, dated April 5, 2010, from Lisa Verner
Southcenter Parkway spreadsheet, Attachment 9, from April 12, 2010 C.O.W packet
Resolution 1702, Intent to Reimburse Capital Expenditures, passed December 7, 2009
Emergency Preparedness Capital Asset List
W 12010InfoMemos \TukSoBondOrdinanceREVISED 1.doc
23
24
Cn
Jr 0 0 0 0
U O O T O O
0 0 T O O
o o LC) 0 0
-C m (C? N O LO
O 0f c CO O
O c0 T d" d
Cn rn d 0) CO
(0 C T
0 0 0 0
N O O O O
c0 LC) M O O
co o T o O
C`") 1: N LC)
Cr; d' CA LC) N
r d (C) (NI
N N
0) d: O O O d O O
O d' CO 0 0 c- N c o
CA d: t` Ln ':t O cB co
N-
0) CO N T (0
(0 0 T (0 d 0) C
M
N CO
C
a)
O
U :0 0 0 0 0 t t O d• 0 0 0 0 0 0 0 0 f
C m O T O O 0) O (.0 CO 0 0 0 0 0 0 0 0 CO
O O T 0 0 0 N O O O (o O (0 O O O d'
o 0 LC) 0 O C) CO Cr) (C) 0 T O LC) 0 O O LC)
L- (0 N O L T CO 0 N- (0 1- N N- 0 d O M
m C) 0) M CO O 0) 1- N O (b d' O) (0 (0 (0 T O
(0 (b T tt d• CO LC) 1- CO 0 0 C)) T T N d' O d'
d CA CO CO CO O Cr) d Lf) N N Cr) CO
N T T CO_ LC) CO N N N
L T T T N
0 64
U
Cl) '33 m I--
N
CD m IS 0 CO CD
cn a) f6 0 C
L
d 1 5 C 0
a. m Ln 0 C a 0
W M Q O O Ce
o m�- 3 Q ci cm
a
tl •C3 m v E n c ((0 L
C O O C O
o C (6 m 0) Q 0 (tf C
C. 0) N N�W 't C m
d Cli CG (f7 O
Y (1) SD 02 m g c z a) LL.
Q m U W LL o o o y y v) O v Y Q) a)
CD U CD m
6 a) 0 a) a) a) N H U a) U 'O L N 2
7 O O i� O U C L
C o O -0 -0) -0 L C rn (0 d U O T
c 0 0 0 0 0 0 0 0 a) c a) o U
00000 U) 000000_0_5
0
a) 0 0 0 0 O O 0
0 0 0 0 0 O O
CO N. O O O O O O
N O O O M
O
0 0 0 0)
Q o0 O O O In
O co co LC)
CO O O) 0 0
M
O M c t
0)
w
U
a)
0
U d
a
C 0D
0 Q
W 0
c
a) a) a)
NII m
0 0
0 0
O O0
0 0
O r
O O)
M
ru 0 0 0 0 0 0 0 0
C 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
M 0 0 0 0 M 0 0
co co co O co co N L()
CO co O) O O CO CO CO
Ch (fl co L() O
N
Attachment 9
0)
a)
b
4-
co
C N OC
r o
7 0)
LL CO w L11
cLoI— 00
C o E To
a)
ca a6,
o_ .c
0 C�
O LL
O CO M
ti h
go to
it its
d. v.
ti ti
os
C7
�r r
25
26
00 0) 0 N
O N (0 r 0 0-
N N aD C7 CO M 01
O fi cc') fV (O
o 0 0 0 0
O fD O OD 0 CD
0 CO r c0 O
o v CO r
N
o o 0 0 0 0
0 0 0 0 0 0
00'-0 Si
O r 0 ti 0 m
r of c0 h o
rsi 0) N Cr) N N
fa
3
0
3
3 C
7
O
•c O O
c
H 0 c Q Q
w n D Z Z
7 J
o o m '3 a o
0) a °7 c a) c c
3 0 o o )4-. E r L
a E 3
O O N a 7 0 N a)
E O o E
a
N U 'C 7 U U 7
y- N U O N y N "0 f V N i
7 w O C'O '0 73 E c N O O
.0 V C C N N B a) "O E _a m a a)
0 L N 7 N -0 '0
a) C O L 01 N •U N 7 J
o a 10 N U -a-2 N a c�
V 7 c@ c L fT C o C C
c E o m m E• Q t w 2
0 v a m E 2 ro o
0 7 c° m 7 m- m 7 o 0
'0 m U a) .0 N U N c0 c a Z U Z U
l' 0 N c0 w L
N
f0 0) E c0 Z O 2 U N L O N .2 L
O N c O a) -O N N Q j 3 N o (0 y
E C c L C a 0-
E N n'' ro C .L°- a)
Si 2 a) N J C E N
20. c° a DE o m w t v E E 0 3
.5
E) I- �'mo >m� �E>
N o a) c 7 C Q N 6
N N 7 c 2 U J N CO ,c U O N
O 0. rn o a) m
c N U 0> N `o a) ,...1 o a U 7 c 3
o
d 0 t: c Q' E cu a 3 C c 3 °O m y y a 0
a. CO X 3 '0 C C E E N L m "8 8
U q) I.1). E co 43 C N O) N O C N o
'O j2 U N N 0 V 0 C N a a) m N N N a) I- c O
0 3 t- c 3 v 0 L N`
a ro E a E 7 a a a E c N� c a� rn m -o a COU cts _5 w U f a
w 3 O N a) N° U (0 (no
'0) Z ro O 2. a) O a 0 E a) a) E O L CK a N N L a) N N I- a O 3 N c J -0 3 a 3 .L..
J
E
O
0
O
O N
co
E
E
O
U
o O
O d
o o 0
-a 0
r)
co
Cr)
0.
0)
o c
E E
E E
E
m
O O o
CO
W W W o
N N N
7 7 7 ac
X m
Li.. iL iL a
c c
w m a) a)
E E E
P_ E a n
7 7 7 7 7 J
W ay. W o LL a
c
0)
LL
N
J W
0
O
O
0
m f0
H 0
N n
7
Cr
J W
THIS PAGE INTENTIONALLY LEFT BLANK
co
3
-0
d
O d Z z
d Z '5
o d Q Z '5 o 0
L p d Z o c c
c
H z Z 5 0 _c y 3
a 0
c 3 0
0 c y 3
C 3 3 SL 3
O N O
3 3 0 N 0-m a-0 a a
W- o c
S) 'cn O O O �j O L A
N -2. O 0. a 'O C p N C al
Y N a N O) .3 N C N
N O j c N
D -O Ti 13 6 -S N 9 0 U Z u Z U
0 0 N Z
c N C N
3 O C EL)
O
"p N O 5 Z U Z U O c 0 I-- as
-i c O5 Z U t L a) i F 4 p.
O V Z u c o) u 'b 9 v m d
O Y O L •N 7 i O N c r N a) c. 6. N
O O) co D o U N d 0 O m C 'Jl a N E O 06
c °0 r, c 3 0 0 9 9 u m t °o N t aa d i° E o w° m°
p_ N~ O C C -O O N tt) C O1 ea N E 0-'- C 0 p '5 C
N N N N 0.s N N c N >i O C N N C C y O 7 N O L1 a) 4) N
a) a) o U L O T 4- N C a) N N 0 a U N L Z' N Q C E
m c o o E "0 d o f E o _r O o y
Y N J U E to l4 Q) N O C 0 0 a) U 0 1 :.e. N N 0 0 9 N N a c
N v o 0 O c 'U -5-
L O L C b Q) N 9 N N j ro C C 0 0 O O C T 0 0- 7 L N c C c U c 0 Q. ',I
N L 10 a) r 00 N .d C O L N O 'n -0 O N n' N N 0- -0 O C L 0. 4 7 U N N
O N U C N Of U a N 7 0 a a C N a) y N w b O C G C
C a) N o 0 N L (6 C rr 3 O p E C C 0-
.,L- O a N a)
o o a 0 o .3.c0aoo3Uc0 .co0 u o o.0 a mE �r
N N Y a) c N .L N U y U 0 4) '6 a) E
N E
0. o s 4) V) m 0 u N c o 3 m c °1 N O° 'c U cv aciLL m E o-o vd o
.z E u o 0 o a) .0 E r ca 0 'V y N a) 3 G o 2 E° o E 0 0 o E co N .-,c o aa 0 o n
0 n o v 3 a) 0 a) a 33 o o a> N o E E. o a 6 m E z a c E o ro 'u'S v o
v- N 4) N o 0 c s N D N 3 o a cc a) .C Q c U 7 0 0 0 t" 0 N N 8 N T C E
m; 0 E o o 9 t a) E 0 Y m j N 0 o Cr C U Q-0 w u c a o in
a o L OE Qu o j 9uoF o•-3 w
0,= F 3 'anti a o N a a C
d v o E
A dr rngm
E 0 x m
P. c v
0
m
m N 0 0
Lets 0 0
U u. 0
0
0
0
W w
w I> N
0
ii
d N C
0 c a ci 3 E
U '5 0 E a
E a En 'a
ca u_0
co 7 5 u- a
4 w a
0 0
O
N O O O 0
o,
p O O
O 0 0 O
O 0 co V O M r
0 r- N r- N
m co to
6) M r
tb N O
y O O 0
1- O O O O N
0 O O N
O d O O 0 u-, O 04
O 0
0) 0
O 0 d' 06 V 0
If") to N o
m
o o C
W 04
Z (0 0 LL C
0 O N
,r) E
N N T M a
2 7 1^ 'R) 'C 7
w
a te o N d Oo u
u m o 1- a o
a)
w
w w m m
d a
3
Y u-
it
it iZ 1.2,- L,
m e m e e a
ya' 3E 'E ca
E 'E a a
a 3 o o l i 0
LL Q LL Q
0
m
a
a)
c 3 i m 2 N
c
g 3 c N
c--- N N
N c a) d
7 9 U N
U a a+ a)
o_ E a 0 a
x 6 N N
O Y (n X U) 0
N N v0 C N N
V N E N 6
E c 0 0 0 b
O a ro v a a p E m
E a
c c v 4 0
0) a a D 0 U
U
0 O
U U a U° Q d n
n- 5 a N o LL
U a N m o' ow
0 .0 0 w J w w
THIS PAGE INTENTIONALLY LEFT BLANK
a.
3
v
0
3
3w
0
L 8
O ro Q Q Q Q Q Q Q Q Q Q Q
w a z Z Z Z Z Z Z Z Z Z Z
O O 0 O O O O O 0 O O
C C C C C C C C C C C
3 L L L_ L_ L L L L L
3 3 3 3 •3 3 •3 3 3 3 3
N ,t 1 w N a) m a) a) N N N m
N N N N N N N •N
N
N
T N N N N N N N N N N N
O O 0 O 0 0 0 O 0 O C O C O C O y O C O C 0 C
.in V a Q. a n 0 0' a0) 0.0) a a a 01 n 0!
o '0 v o a r o o -o
y 0 O O 3 O O 0 O O O O 0 O O C 0 O 0 0
T 0 C L C L C L C L C L C L C L C L C L C L C L
N N N N N N N N N N N
V w C C C C C C C A.-.. C C 0
0 0 O j o f 6 j 6 j O j O j O j O j O j O j O j
v z o z o z o z U z o z o z o z o z o z o z o
EL) a) o
its xs 0) o) 0 0 0
9 co C .E U o 0 E
m m m C N O C O O N (0 N m N N O N 0 E
E n a E 7 0 0 m o a) g o y o a a) H m 2
L o N (n w N
O N 0 'a O IY n N N W m a
w Q1 C C C V) E W O o U U
C.C., U U V' a) N m c m C o) O
cu o m rn U Fi o a) n a) c n a) c hiil r .L L E m 0 a) a) E' m E' o c U c c c c m Q o a v m c .a -o c y j a) 0 E 0 E p 0 0 0 0 N c c 0 c WI) c c a 0 c a) r a
N
a -nN nu c E 4 P. m Y o Y o aa) ro?'m o oa)m
E E E ED ca o m C E E
0 d 0 0 a Cr 'w o .c m m m am m. o m c m c m a 0 o D o c
10) .C1 N om Nom m -oho Na; n Ems N o N0 0 0 U aov
4! C (n C (n O C o C m' 7._ m a) (a N 0 N U O N C
U 0 C C -c N C C C? w N U U U U Z' C 0 '0 U N J 9
m 0 0UE o) -c `a'8 m 0 2 0 b aw -0 0 N 8 m mm
H HE `.2 E E m e m m` mo a C7> 0
D -0 p 'o pp O N m 12 O 0 a a a c o Y 0
0 a 0 U y U O "0 N a W (a 0 0 0 O a a X Y E X E O N L O D m 42 C
0 t CC a E cc a c H o o! E E u) .E c m 0 H w N io io 'v N FL o F- o N m m
0
E E on E
w c
p_ 0 0 N w
0 a (00 m O. -0 (0 m
C 7 n 7 m m 7 3 X
0 0 C 0' w C 0 O C 0 •0
m2 N N v E o f E E EE m a) E E
21 t 0 "C N-c N m m; L"'
co a0 =Dan) F, 2M 0)) 0))0)) t°
O LL 0 'o O .Z 'O 2t v 2t '0 U w o U .4 'o
w
J
W W W W W W W W W
0 N N N 2 N 2 N N N
m U iL iL LE u it a: 'u. iL
0 m C N C m C N C N C m C m C N C tL C
a) E 'E 'E �E :g s g :g E
N C O. C O. C a Ea-Ea- a c O n C 7 5
a C a
Q
7 O 7 •c LL 7 Cr LL 7 5 O C 7 Cr C ti C LL c
u_ a• LL v Q W a Q a Q
U
N
0 0 0 0 0 0
o 0 0 0 0 0
o o 0 0 oo 0
N Q) V (0 (o co N
.0 N M
H
0 0 0 0 0 o 0 0
U O O O (0 0 0 0 0
n v) n o a (n o
O V N N 03
C
V
a)
a)
z
E
0)
0 o O o 0 0 0 0 0 0 0 0
N M O 0 CO M (0
m
a)
a)
0_
E
co
m (a 0 o
N L
L 3
N U 0
N N
L N Y C 0 0)
a) 5 d 0) L
N N N (0 C
O
m m m m co
u. .n C7 2 H K 2
0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
a
0
U
m
0
a
m
W w o
N N co
d
it u_ a
E C N C
w E ii E
a E a
7 J 7
LL 0 LL. 6
a)
L
O
a)
N
0
co
m
o_
H O
U
a)
00
05
0
THIS PAGE INTENTIONALLY LEFT BLANK
a) Z
4
-0 Z o
c
1 4 o
0
3 y z
;O G
L Q C L A
4 2 0 3
m cal z c a) o
a y 0 0
C
o 0 Ti.) O C _o
9 N d 3 m o T.
0 o c
d` a N c Zo
D 'N d
',C N CO O N C L O j N
r o0 a m N Z° E.
0 a a, o a d o a)
o p
xi 0 C .II N n O O C a) C O C d C Z 0 N N O w G a d
C N 6 N
3 C O j Z 0 y@ n r W C N d to O C Y O E O N
o '6' Z 0 d C d U) C (a N O Q U d '0 N@ 4 w G 0 p_ L..,
3 6 p LP N 'O N E 0 0 d N O J L a) d d@ Q d E Z N O O
C N ro O O U N O U N N 7 O N L a E C 0 a
ej d d 0@ d i4
)a L 7 c N y C ca d g 0 O N J E O Y N p d d N d N C C. a) y
N C ?7 9_ L N p) p y 3 7 3 C 0? N N L ca O 3 L T N Q -c.. Q a) p C a p.
O
d d a N 7 N Y 'O C d 7 0 ca 'O a) C N 0 a) d 0 a@ O N@
-0 Y 3 E o E c 4 i m o v c N 3 of y S o@ `'N m
d N p d a) 0 0 0 -0 (6 N E d N N L O x N
.t.. N as N a N C N U C L, N C E d N d d G N 3,_ 7 0 7 N N p N L
o 3y m .r._ c o 0 3 9 0°) a 0 0C (A 0 ,t U n N roa) �3 E�
c w d`- i o ao O Zoao
m us y� v a a mc �a 0 E
t y C C E a a N L 0, E U 7 L U N
O. 0 C y W L' Q) N 0 o d C I ca O N i Y is N 3 N N O. n O d> 6>d "C c O D O-°' N 3 T O 3 R V 0 Y a
N n o ca. 3 T p S. N -is O Z .II '6 D N .c r y V E° U J
v� m cv m o @c Y
m� U o In a 0 am N tt cp a
w °o
iq3i U @a d
d L d
Q
N
Ea-
ca
1
o c
m
d d
rn2 0 0
c N o
es t dS u-1 c
Vu' O a) D
%II j A
W d 3)-
0 N 7 LL
0 w d C
t u- N
.1 u C C 6
c N C 7O N
y m E 6
lL G a C a V
7 a) 6 0
6
Li-
w'
J u}
W d
N 0
o O
6 LL
V. 11 N
U d N y E
C
0 C O 3
N `5 '5 1
Q li- O
0
N
o d
d O D
N 0 N
C 0
0 0 0
0 Q
tn
a0 N
IR
0 p
O O
0 O O 0
O Op
0 N
0 0 0 O 33)
!O O n
p 0 N
Y 0
0 N
O o ,c)
00 0 Q
0 0
0 0
N N
a 0
C
O
0
C y
'd 0)
0, N C
C
CO 7 C a
6 O a N d E
ii
E N C C O N°
U 0. d G C
u) N E o a
U Y
U
3
N a
Y N N
'O, ti
a a
E V c a) a
r o c9
N Y
0 u N
10 N
d d 4 m
d p O U ca
o U 0 W J
cl `I U m w J
d
CD W J
CC. U u)
Y W J
a.
0
F-
THIS PAGE INTENTIONALLY LEFT BLANK
y n C
MI m m a..) RS CD
L E 0) c N
7 L a)
0 U 0 O.) L 5 N L O L
p N @F a o Nm a�o U
3 c O m a c a 0)
1
a O C 0 O N n w N
C E o E 3 L o is m
L o n y a t o c m Ta m L m a
co a m a 4 a a w a) o o •3 m. a a Q
w o z �a @�v 3 a s N v� 88,
z z z
5
0 0
L N 3 c c
0
E o E .0 ai :c r
w a) m
3 v a .0 3 3
y a) E m a)
o n 3 c N c N P
L O y N 7 y N y 'N
N O w C U L N N
o m a� m cra o a a
L a 0) N N 0I o a a OI O) co a 0) m
a) 0 O j "7 j J a, NO L;) C D
O C L j) N .O L
a N C 0) nL a (0 .N
V O. N O .5 O) U E C C
w a N
o v o iii o o w c 0 3
`o Z U m@ w N 0) Z Z U Z o
U
C 0
a) O N a) U C m E 0 0
LO
co H N c 3 a N o 3 c m c c N 0 m z a ro a
a 2, E 2 p E ro x _2 E w a m N n m N N
y N C N "0 F- 8 N m 0) N O) '3 L C O E co O) N
CL ro w m ro v n ro° ro E NN c a N u N co ro a) a co U E a C7 0
O 66 E m N N c .2. -E. 3) U C O c N
-54,6,_ O c m Z N y N
L f. C n n 0 3 'C a N O Q N• O •C O L N C T C CO
O N N Q d O O a Y O L a n L w 0 O C i O N d L o a° a'u N a p N a) a o a c o o o ro m °0 m Q) O Y a Y O N 'C C d N Z a N C C r O) I- O O 'O O O 0) P N a) n N I L w W U w O oE O O w N a0 O
0 c@ c Y E r `o E m o E o� a_ 03 CD E
a N c co 2,1) -o c ca o a a) E� d a) 0 0 o C7 y al w 3 a m N a c o o Y
v a m c 2 2 0 0 t m a) 0 w m ow Si@ N c w v 0, a o L w@ aw m
N .D L N 4 all -o a Si N N O@ N a U O 1 a N a m
v= O C T ro 't". U U N O) S] c Z U C C a) C Y N a) a C O CJ O
V; a E c (2 C 'd N E 0 .N C O o O Z N a L.. Z N a o U 0 a m N N N Q a 0 C
-i.-).
ro Q E V U �1 0 0) L 0 7 a 0 0 ro 7 @a a) Qj j z.._1:1,.)
C L a) a U U
m o o c E E 5 N a°)) O N o ro rn o n o o o c n_ a, 0 r o 0 a a a
03 L Q m H o c a) a) a 2 c Z E@ Z'> c E Z w n w m N Z'> c U cn U N
a
N N r
co 0 N
v>
E a E
O
c c a0 o
N N ON O a)
c 2 �'0 E
o
.0 o E w (3) ro
U LL04r n Cr
m
-J
U
N
2
O CO
O O
N O
to (D
N
1-
0 0
0 0
(.3 N 06
O 0)
o
N NI
C r r
O 0
U
0 0 N .a
0 01
J 0 J W
CO
m
o CO
CD
O
O O O O O
O O O O O
O O O 0 0
0
O N O aD
a0 N 0) 0 La
r..-:
N M N
0 0 0 0 0 0
0 0 0 o O o
0 0 0 )n 0 0
0
0 N N O O
M (0 )n 0 0)
N co" N
(0
U
U
h
N
c o
0
U U
U
O N N
a
2 0
THIS PAGE INTENTIONALLY LEFT BLANK
r
a-- N N C
c o c 2 v
O N Y c "!6 6 T
0 O o a N O] E p
o
N 3- g -a> N N N T IS -o N 1/2 0) Z
V A aM t71 2 N m 7°
0.,.,„.,0.0 00.m
5 et o Q Z
o "I 4 z m
.co Z O 9
N
w 5 c 3 a0
r N N C
3 7 o m
N N N a ol N
U
9 O C
t+- N 0-01 C c
'L e- O 0 c..0 r N C df
o ..o. ii II r o 0 5 N N N O
nv 05 ZU o03 E.aa
y a O
y O N Z v N 7 UI 2 U 6 U N
L (55 O U E N A O N N O
-o Z O N A c m N A N O
o E c OoC o U E m. c.0
N N o O N N D N 0 a LL' N C G W 'C M 0 7 0 0 0
'C A y C O C •L G 01 N m N N N> O N O. N A O N
c C 'o N G N -o N J 0 1- N C m T [0 'O y7 U° r a V N o 0 C p 0. n
11 m0 G '-0 N O -p Ui o
L A O p m T 0> 'O N U o G. 0.O m 0. y1 X G O� M m2,9'3 E
A U 0-0.,-. m N' m m 6 5. O m° 6 N 0)00 C 'O W OS U .o.-c0
A
c 0 U 0 O 0 '•E E n�v. o c 0a��a`Jp` 0> mm°
N 6 C A N U O O N N N O Op N .i18) 'D A U Z y b N 4
N a) N U N 'Ti 7 'n N G C N L A N A P N N U N C C
o y E° N"O N. o m o N N rn A 3 c
0-0 p 3 Q N G O d N O O N N m O O x o A' T U N 0 N p N N L
y N -o" O m N N U (a N
›.0,,
6.Y1-t''' N N v J U o N
-S -00) m'6Am °NA --a�,� mZm.° oN 1
0 ss 0�O U o0-0 °m. N'3 o T _a0..0toA
A Z 3 N o U N L
N a o° >.m `t o ms 000 mm E N N'"'
v U
0 .V A C Yr N 'jn O N N G !.0 n9- N N y U N
7
E. c.
d
t
N
o8
u
N
N
5
m N m
J N o N
A w
o� N
A
o N 3 N
N A O
0 0
Ili U p
o O
a Q O
O
N
O N
N °O 0 M
O 0 r
O O
16
O
O
O
O_
M
O
O
C
0
O
O 0
O r
o
N
'6E260, N
O 6
N 3 c
m U
0 V 3 a)
0)
N
[0
t
O
UJ
Lj1 7
N o
x N
O N E 1i
o o r -o
N o c U
m c
0
o 0
d
U
co
ca
W o
0)
O
O
M
O
M
N
0
THIS PAGE INTENTIONALLY LEFT BLANK
k
E e
'5
E
k g
0- ƒ o- e
k k ƒ 0-
A i o Cr
u a
ƒ ƒ -0 o vs
s o. 0 no co
7 k k Ot y CV
C y 2 I y& a
2 k o- k k E S 0ƒ S
m a E e 0 0 a a
3 0 0 5 0& U R
m o y v U
n 7 CI) S o
C. 6 y 7 7 7
)3 2
R S
a 6 7
o
40
Finance Safety Committee Minutes June 8, 2010 Page 2
D. Bond Ordinance for Southcenter Parkway Extension
Staff is seeking approval of an ordinance providing for the issuance of new bonds in the amount of just
under $6 milhon. The Committee discussed the issue of combining the needed funds for the Southcenter
Parkway construction costs, together with Emergency Preparedness Capital equipment costs. The cost of
each bond processing can be as high as $200,000, so it is staff's recommendation that the two needs be
combined into one bond. This bond application has already been reviewed with Moody's, and there were
no issues /concerns regarding the combining of these two areas into one bond. The Committee asked that
the list of Emergency Preparedness Capital Assets be explained in further detail prior to Council review.
One of the items (Fire /Police Command Unit) has grant funds attached, and there were some concerns
that delays in moving this forward would jeopardize these grant funds. Staff were asked for the
following:
STAFF WAS ASKED TO ADDRESS THE QUESTIONS ABOVE AND BRING BACK TO
COMMITTEE, IF THERE ARE NO NEGATIVE IMPLICATIONS OF WAITING. IF
STAFF DETERMINES THAT A DELAY WH L ADVERSELY IMPACT GRANT FUNDS OR
OTHER ISSUES, THEY W ILL NOTIFY THE COMMITTEE CHAIR AND DETERMINE
NEXT STEPS.
E. Animal Control Interlocal Agreement
'Staff is seeking Council approval to enter into an Interlocal Agreement with King County for animal
control services. The City of Bunen has decided not to be part of the Interlocal, which will raise
Tukwila's costs by about $11,000 /year. Committee discussed the options of individual City's
establishing fees or fines on recurring "problem properties UNANIMOUS APPROVAL.
FORWARD TO JUNE 14 COW FOR DISCUSSION.
F. Filing Dates for Elections
Staff was asked to provide deadlines for upcoming elections to Committee. INFORMATION ONLY.
MISCELLANEOUS
Meeting adjourned at 7:00 p.m.
Next meeting: Tuesday, June 22, 2010 5:00 p.m. Conference Room #3
1. Determine what the implications would be of splitting this bond application into two separate
ordinances (Southcenter Parkway Construction, EOC Capital Assets)
2. What will the implication be of not moving forward at this time?
3. Would there be any cash flow implications related to State reimbursement on the Southcenter
Parkway construction work if there is any delay in issuing bonds?
4. The language in the agenda materials needs to be clarified to reflect that this bond would not be
used for items already purchased.
Committee Chair Approval
Minutes by JT Reviewed by SH
41
42
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
City of Tukwila
Finance and Safety Committee
July 7, 2010 5:00 p.m.; Conference Room #3 *Wednesday meeting due to holiday
PRESENT
Councilmembers: De'Sean Quinn, Chair; and Dennis Robertson (for Kathy Hougardy)
Absent: Allan Ekberg
Staff: Shawn Hunstock, Peggy McCarthy, Dave Haynes, Tami Erble Harris, Nick Olivas, Bob
Benedicto, Marty Grisham, Gail Labanara, Bob Giberson, Hillman Mitchell, Jack Pace, Steve
Lancaster and Kimberly Matej
Guests: Mary Hulvey
CALL TO ORDER: Chair Quinn called the meeting to order at 5:01 p.m.
I. PRESENTATIONS
No presentations.
II. BUSINESS AGENDA
A. Bond Ordinance for Southcenter Parkwav Extension
This item was originally heard by the Finance Safety Committee on June 7, 2010. At that time,
Committee members had some clarifying questions for staff and requested the item return to Committee
for further discussion, unless grant fund processing was time sensitive.
taff is seeking approval of an ordinance providing for the issuance of new bonds in the amount of $6
million, and authorization for the execution of a continuing disclosure agreement for such. The
information memo in the Committee agenda packet addressed prior Committee inquiries (see Committee
minutes dated June 7, 2010).
Council President Robertson expressed concern over the City's current economic situation and the cost of
items being requested in the draft bond ordinance (outside of Southcenter Parkway improvements). He
acknowledged the need for these emergency preparedness items; however, he was concerned this may not
be the best way to finance these items. Committee Chair Quinn shared his concerns with the emergency
preparedness items, which included: 1) the City's ability to pay for these items in the short-term in
comparison to the need; and 2) how the Police Department will secure matching grant funds for the
mobile command unit if the items are not included in the draft bond ordinance.
Staff answered questions and provided clarity on emergency preparedness items as outlined in the
Emergency Preparedness Capital Asset List included in the Committee agenda packet. The items are
essential to maintaining continuity of internal and external operations during and emergency. Failure of
current equipment, not replaced through the bond, could be catastrophic. After a lengthy discussion, the
two Committee Members agreed to forward this item to Council for discussion, recommending that the
draft bond ordinance be approved as is, including the purchase of the emergency preparedness items.
UNANIMOUS APPROVAL. FORWARD TO JULY 12 COW FOR DISCUSSION.
B. Resolution: Establishine a Seattle Southside Visitor Center Change Fund
Staff is seeking full Council approval of a resolution that will establish a change fund in the amount of
$100.00 for Seattle Southside Visitor Center. The addition of the change fund is needed for cash
transactions related to customer purchases such as admission tickets and transportation. The change fund
will increase operational efficiency and improve customer service for the Center. This will require the
repeal of Resolution No. 1676. UNANIMOUS APPROVAL. FORWARD TO JULY 12 COW FOR
DISCUSSION.
CAS NUMBER: 10-080
Fund Source:
Comments:
EXPENDITURE REQUIRED
7/12/10
7/19/10 1
7/12/10
7/19/10
10 -080
COUNCIL AGENDA SYNOPSIS
Meeting Date Prepared by I Mg;"'r review (ounq. review
07/12/10 SH I �-�}U
07/19/10 1 SH
Initzalr
NEO_RM_ A a-
1 ORIGINAL AGENDA DA I h. JULY 12, 2010
AGENDA ITEM TITLE Proposed Program Reductions and Revenue Increases Public Meeting
CATEGORY Discussion ['Motion Resolution Ordinance n Bad Award Public Hearing Other
Mtg Date 7/12/10 Mtg Date Mtg Date Mtg Date 7/19/10 Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police Pik
SPONSOR'S The City Council has scheduled a Public Meeting to solicit citizen input on recommended
SUMMARY program reductions and revenue increases. Three draft revenue ordinances are provided
for consideration.
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 06/28/2010
RECOMMENDATIONS:
SPONSOR /ADMIN. Mayor's Office: Forward revenue ordinances to July 19 regular meeting.
COMMIIThE N.A.
AMOUNT BUDGETED
ITEM No.
'-f g.
APPROPRIATION REQUIRED
ME
Informational Memorandum regarding Public Meeting dated 7/12/2010
Informational Memorandum regarding Revenue Enhancement Ords dated 7/7/2010
Revenue Enhancements spreadsheet
Ordinances RGRL, Utility Taxes and Business License Fee
CIP Attachment D, E F
1 3
44
City of Tukwila
INFORMATIONAL MEMORANDUM
TO Mayor Haggerton
FROM: Steve Lancaster, City Administrator
DATE: July 12, 2010
SUBJECT: Public Meeting on Proposed Program and Service Reductions
and Proposed Revenue Increases
ISSUE
BACKGROUND
DISCUSSION
RECOMMENDATION
Jim Haggerton, Mayor
The City Council has considered various program and service reduction proposals and potential
revenue increases in recent months to address current and projected revenue shortfalls.
Council has scheduled a Public Meeting for July 12, 2010 to solicit public input on the proposed
service reductions and on proposed revenue increases.
In early 2010 the City Council reviewed the City's current and forecast financial situation and
determined that significant action is required in order to bring revenues and expenditures into
balance. A $9 million per year gap between anticipated revenues and forecast expenditures
was identified. In response to this situation, the City is pursuing a balanced strategy that
includes the following targets: reducing programs and services by $2.2 million per year;
reducing the total cost of compensating City employees by $3.4 million per year; and increasing
revenue by $3 4 million per year.
During the months of May and June 2010 staff has presented to the City Council proposed
service and program reductions that total approximately $2.3 million in annual expense savings
The attached table summarizes the service and program reductions currently under
consideration. These program changes would be implemented as part of the 2011 -2012
Biennial Budget; however, some of these cost savings may be partially implemented in 2010
In April of 2010, staff presented a series of revenue increase options for Council consideration.
Based upon Council discussion, staff has prepared ordinances that would create a Revenue
Generating Regulatory License fee, modify the current ordinance establishing a utility tax on
city -owned utilities, and modifying business license fees. Included with this agenda item is a
memorandum (dated July 7, 2010) and related materials regarding proposed these revenue
enhancement options.
Conduct a Public Meeting to obtain citizen input on proposed program reductions and revenue
increases Schedule the proposed revenue ordinances for consideration and possible adoption
at the July 19 regular meeting of the City Council.
45
INFORMATIONAL MEMO
Page 2
ATTACHMENTS
1. Program or Service Reduction Proposals Summary
4 6 W \Steve\ BUDGET1 ProgServiceReductionsMemoJulyl2 .doc
PROGRAM OR SERVICE REDUCTION PROPOSALS
SUMMARY
PROGRAM 1 TARGET PROPOSAL 1 REDUCTION
May 10, 2010
Boards and $27,500 Reduce Arts Commission Budget $21,500
Commissions Reduce Equity and Diversity Commission Budget 3,100
Reduce Sister City Committee Budget 2,850
$27,450
City Council $5,000 Reduce "Other Services and Charges" and "Supplies" $5,000
Mayor's Office $125,000 Eliminate "Analyst" position $100,000
Modify method of contracting for legal services $50.000
$150,000
Community $300,000 Eliminate second electrical inspector position $94,500
Development Reduce level of graphics and mapping services 45,800
Dept. Cross -train Permit Technicians 46,500
Transition to lower -cost GIS 17,080
Fund existing staff through housing program revenue 80,000
Reduce capacity for unanticipated needs 16,120
$300,000
Municipal Court $6,000 Reduce Court, Probation and Parole expenditures $6,000
Human Services n/a Maintain current level of support for CSC $0
May 24, 2010
Information $112,500 Reduce Cell Phone expenses $10,000
Technology Dept. Miscellaneous budget reductions 14,500
Reduce MS Office licensing costs 27,000
Reduce PC specifications /extend rotation period 63.000
$114,500
Public Works $375,000 Eliminate Development Engineer position $101,050
Department Eliminate the CERTTraining Program 44,500
Reduce Street Maintenance level of service 71,500
Reduced service levels in Bridge and overlay programs 137,500
Eliminate Dump Pass and Neighborhood Clean -up 32.500
$387,050
Service ReductionsMatrix6142010.docx sji Page 1
161
47
48
162
Parks and $448,000 Reduce Administrative capabilities $103,000
Recreation Dept. Eliminate Tukwila Days $25,000
Eliminate Employee Recognition Banquet 12,000
Reduce Programs for Seniors 102,000
Reduce Programs for Youth and Teens 51,000
Reduce General Recreation Programs 42,000
Reduce Services for Facility Rentals and Operations 11,000
Reduce Various Administrative Expenses 17,000
Transfer 0.5 FTE from Parks Maintenance to Golf 28,000
Reduce Overall Parks Maintenance services 77.000
$468, 000
Foster Golf $62,000 Reduce General Fund Subsidy $62,000
Course
June 14, 2010
Police $93,000 Eliminate the Crime Prevention Officer position $97,000
Department
Fire Department $204,000 Reduce Admin Support Tech position to time $21,300
Reduce Fire Prevention by one Captain position 104,447
Reduce minimum staffing to reduce overtime costs 100.000
$225,747
Service ReductionsMatrix6142010.docx sjl Page 2
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Shawn Hunstock, Finance Director
DATE: July 7, 2010
SUBJECT: Revenue Enhancement Ordinances
ISSUE
BACKGROUND
DISCUSSION
City of Tukwila
Jim Haggerton, Mayor
The City Council has considered various revenue enhancement options available to the
City to both address revenue shortfalls in certain areas and to fund needed
infrastructure maintenance and improvements. Ordinances adopting three revenue
enhancement options are presented for Council consideration and approval.
The City Council reviewed a number of revenue enhancement options in prior weeks at
several recent Committee of the Whole meetings. Administration is presenting
ordinances for the adoption of a revenue generating regulatory license (RGRL),
elimination of the sunset provision for a tax on City run utilities (water, sewer and
surface water), and an increase in the business license fees.
The revenue enhancement options presented will be utilized in conjunction with wage
and benefit concessions and program /service reductions, as part of a three pronged
approach to develop a combination of approximately $9 million annually in new revenue
and expenditure reductions.
Revenue Generating Regulatory License (RGRL)
A revenue generating regulatory license (RGRL) would allow for funding of essential
services required by businesses operating within Tukwila. These services include
provision of public safety (police and fire protection and response), maintenance of
infrastructure critical to the operation of businesses within the City, and other City
services used by employees and patrons of businesses such as recreation facilities,
trails and recreation programs.
Revenue collected through an RGRL would be used to offset the burden businesses
and their patrons place on City services. Based on the size, use and occupancy of
typical structures, the cost of police and fire response is typically higher per call for
businesses than for residential properties. Also, with a population of just over 18,000
49
INFORMATIONAL MEMO
Page 2
and an estimated average daytime population of over 100,000, businesses and the
patrons of those businesses place a significant demand on infrastructure above and
beyond that required to serve a City of just over 18,000 residents. The RGRL will be
used to offset that burden to the City in funding the services required by businesses.
The RGRL ordinance includes a regulatory fee of $55 per full -time equivalent employee
for businesses operating within the City. The most recent survey completed by the
Association of Washington Cities indicates eleven cities charge a similar fee per
employee, per hour or per full -time equivalent employee. Neighboring jurisdictions with
a similar fee include Renton, Redmond and Kirkland. The City of Renton assesses $55
per full -time equivalent employee and Renton dedicates a minimum of 80% of the
revenue collected to transportation improvements. The City of Redmond assesses a fee
of $90 per full -time equivalent employee with $55 of the fee dedicated to transportation
improvements. The City of Kirkland has a base business license fee of $100 per
business plus a RGRL of $100 per full -time equivalent employee. Kirkland has no
specific dedication of RGRL money, but does use "a portion" of the revenue to fund
economic development programs. This amount varies but is typically Tess than half of
the RGRL collected annually.
Utility Tax Change
The City Council passed Resolution No. 2258 on October 19, 2009 adopting a utility tax
on City operated water, sewer and surface water utilities. The Ordinance provided for a
rate of 15% of gross revenue from the utility funds until April 30, 2010, then 10%
effective May 1, 2010 through December 31, 2012.
Changes to the existing utility tax on City operated utilities is another area the City
Council has considered for addressing significant revenue declines in other types of
revenue. Continuing the existing 10% rate beyond 2012 would generate approximately
$1.3 million in revenue annually. Every 1.0% increase (or extension) of the utility tax
generates approximately $130,000 of additional tax each year at the current revenue
levels for all three utility funds.
The ordinance accompanying this Information Memorandum assumes an extension of
the sunset provision from December 31, 2012 to December 31, 2015. Council could
consider extending the sunset even further, or removing it altogether.
Business License Change
The City Council has previously considered various forms of changes to the existing
business license fee structure. The direction Council gave to administration is included
in the accompanying ordinance. Below is a table summarizing the changes:
Existing New of
Full -time Equivalent Employees Fee Fee Businesses
Home occupation $50 $50 7.10%
0 to 10 $100 $100 67.50%
11 to 20 $100 $150 10.86%
5 0 W InfoMemoslinfoMemo_ RevenueEnhancementOrdinances07122010 .doc
INFORMATIONAL MEMO
Page 3
21 to 50 $150 $300 9.17%
51 to 100 $200 $400 2.77%
101 $300 $600 2.60%
The above changes are estimated to result in an additional $79,000 of revenue for the
general fund each year. As illustrated in the table above, between home occupations
and businesses with 0 to 10 employees, approximately 74.6% of businesses would not
pay a higher business license fee according to the attached ordinance. Only those
businesses with 11 or more employees would pay a higher fee.
RECOMMENDATION
The Council is being asked to approve the ordinances 1) adopting a revenue generating
regulatory license, 2) extending the sunset provision on a utility tax for City operated
utilities, and 3) increasing business license fees.
This item is scheduled to be discussed at the July 12, 2010 Committee of the Whole
meeting, and the July 19, 2010 Regular meeting.
ATTACHMENTS
Ordinances RGRL, Utility Tax and Business License Fees
Revenue Enhancements spreadsheet
Proposed Utility Rate Increase spreadsheet
CIP Attachment D Water Enterprise Fund (includes projected rate increases)
CIP Attachment E Sewer Enterprise Fund (includes projected rate increases)
CIP Attachment F Surface Water Enterprise Fund (includes projected rate increases)
W InfoMemoslInfoMemo_ RevenueEnhancementOrdinances07122010 .doc
51
52
DRAFT
AN ORDINANCE OF THE CITY COUNCIL OF THE C11 'Y OF TUKWILA,
WASHINGTON, ESTABLISHING NEW REGULATIONS REGARDING
REVENUE GENERATING REGULATORY LICENSES TO BE CODIFIED
AT TUKWILA MUNICIPAL CODE CHAPTER 5.62, "REVENUE
GENERATING REGULATORY LICENSES PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EPPECTIVE DATE.
WHEREAS, the City Council recognizes the City of Tukwila is in need of additional
revenue sources in order to address a dramatic decline in recent sales tax collections,
and
WHEREAS, the City Council and Mayor are in the process of implementing
permanent reductions to the General Fund operating budget; and
WHEREAS, such expenditure reductions are not sufficient to fully account for the
recent decline in revenue, the City Council has determined it is in the best interest of
Tukwila citizens and businesses to provide long -term financial stability, rather than
continuing to use one -time cost savings measures, to address unplanned economic
challenges the City might be faced with in the future;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Regulations Established. Tukwila Municipal Code Chapter 5 62,
"Revenue Generating Regulatory Licenses," is hereby established to read as follows:
CHAPTER 5.62
REVENUE GENERATING REGULATORY LICENSES
Sections:
5.62.010 Regulatory Licenses
5.62.020 Revenue Generating Regulatory License Fee (RGRL)
5 62.030 Determination of number of employees for RGRL
5.62.040 Exemptions
5.62.050 Penalties
5.62.010 Regulatory licenses.
A business that holds a current valid City of Tukwila regulatory license under
another chapter of this code must also file the general business license application form,
pay the general business license fee and pay the revenue generating regulatory license
fee (RGRL) pursuant to this chapter The fee levied in this chapter shall be additional to
any license fee or tax imposed or levied under the law or any other ordinance of the
City except as expressly provided herein.
5.62.020 Revenue generating regulatory license fee (RGRL).
A. General. In addition to the business license fee, the highest applicable RGRL in
this section shall be paid for the annual license issued under this chapter
W- Word Processing Revenue Generating Regulatory License
SH:mrh 06 /30/2010
Page 1 of 5
53
54
1. A business with less than $12,000.00 of average annual gross receipts shall
be exempt from any RGRL.
2. For the purposes of this section and in determining the applicable RGRL,
the term "employee" means and includes each of the following persons who are not
required by the City to have his /her /its own separate City of Tukwila business license:
a. Any person who is on the business's payroll, and includes all full -time,
part -time, and temporary employees or workers, and
b Self- employed persons, sole proprietors, owners, officers, managers,
and partners; and
c. Any other person who performs work, services or labor at the
business, including an independent contractor who is not required to have a separate
City of Tukwila business license.
3 An entity that is entirely exempt from paying the business license fee shall
be exempt from any RGRL.
4. An entity with some activities or functions that are exempt from the
business license fee and some that are not exempt shall pay an RGRL based on the
number of its employees that are involved in the functions or activities that are not
exempt.
B Amount of RGRL.
1 Revenue Generating Regulatory License (RGRL) Fee Method. Except as
otherwise provided by this chapter, every person engaging in business within the City
shall pay an RGRL based upon the number of employee hours worked in Tukwila
during the previous year Annual employee hours are calculated based on the sum of
the 4 quarterly reports submitted to the Washington State Department of Labor and
Industries (L &I) for the previous year. It will be the responsibility of the employer to
determine the number of hours worked within the City from these reports. Businesses
that did not file quarterly reports with the Washington State Department of Labor and
Industries shall determine the number of hours worked within the City and
demonstrate, if required, to the satisfaction of the Finance Director or his /her designee,
that the number of employee hours worked is correct.
2. The annual RGRL fee shall be calculated by multiplying the minimum fee,
as defined in subsection (F) of this section, by the number of full- time equivalent
employees that worked in Tukwila. The approved tax rate per full -time employee is
$0.028646 (which represents a RGRL multiplier of $0.028646 per employee hour
worked), as may be adjusted herein. Employers without a full year history would need
to estimate the number of employee hours that will be worked in the current calendar
year
3 If a business has more than one location in Tukwila, the annual business
license fee calculation must include a minimum fee for each location and the RGRL for
annual employee hours at all locations.
C. Alternative FTE Method. A business may choose to calculate its annual RGRL
fee by multiplying the minimum fee by the number of its employees. The number of
employees shall be based on the sum of the employees in the 4 quarterly reports
submitted to the Washington State Department of Labor and Industries (L &I) for the
previous year divided by four. It will be the responsibility of the employer to
determine the number of employees working within the City from these reports.
Businesses that did not file quarterly reports with the Washington State Department of
Labor and Industries shall determine the number of employees working in the City and
demonstrate, if required, to the satisfaction of the Finance Director or his /her designee,
that the number of employees is correct. Employers without a full year history would
need to estimate the number of employees that will work in the City for the current
calendar year
W. Word Processing Revenue Generating Regulatory License
SH:mrh 06 /30/2010
Page 2 of 5
D Once the FTE methodology has been selected, it must be used for future
renewals.
1 Businesses with more than one location in the City of Tukwila must use the
same method of calculation for all locations.
E. For businesses with employees who work less than 1,920 hours per year (the
work hour figure used by the Washington Department of Labor and Industries) the
total number of hours worked by all such employees during the 4 quarters of the
previous year shall be added together and divided by 1,920 to determine the FTE
equivalency.
F It will be the responsibility of the business to determine the total number of
FTEs (or equivalency) and demonstrate, if required, to the satisfaction of the Finance
Director or his /her designee that the calculation is accurate.
G. The RGRL fee for a business required to be licensed under this chapter and not
located within the City's corporate limits shall be calculated by multiplying the
minimum fee by the number of employee hours worked within the City, but in no event
shall the license fee be less than the minimum fee set forth in this chapter If the
number of employee hours worked is not known at the time of renewal, the business
shall estimate the maximum number of employee hours they anticipate using in
Tukwila during the year.
H. Businesses doing business in the City that have no employees physically
working within the City shall pay the minimum fee required under this chapter
I. The minimum fee under this chapter shall be $55 00, and may be amended
from time to time.
J Payment made by draft or check shall not be deemed a payment of the RGRL
fee unless and until the same has been honored in the usual course of business, nor shall
acceptance of any such check or draft operate as a quittance or discharge of the fee
unless and until the check or draft is honored. Any person who submits a RGRL fee
payment by check to the City pursuant to the provisions of this chapter shall be
assessed an NSF fee set by the Finance Director if the check is returned unpaid by a
bank or other financial institution for insufficient funds in the account or for any other
reason.
5.62.030 Determination of number of employees for RGRL.
For the purposes of this section, "employee" shall be defined as in Section 5.62.020
A. Standard Rule. In determining the amount of RGRL fee to be paid for the
upcoming license year, the number of employees shall be the current number of
employees or the number of employees on the last regular working day of each of the
last twelve months divided by twelve, whichever is higher. Each person who comes
under the definition of "employee" shall be counted as one employee, even if the
person works part -time.
B Alternative Method "FTE A business may choose to calculate the number
of employees for the purpose of the RGRL fee according to the following alternative
method based on the number of employee hours worked for the business during the
previous year
1. The business must notify the City of its choice to use the FTE method. It
will be the responsibility of the business to determine the number of hours worked for
the business, taking into account the information submitted to L &I in the last 4
quarterly reports. The business must demonstrate, to the satisfaction of the Finance
Director, that the alternative calculation is accurate. The director may require the
business to submit copies of its L &I reports.
2. Each employee who worked more than 1,920 hours during the previous
year (including paid time off) shall be counted as one employee. If a person such as an
W Word Processing Revenue Generating Regulatory License
SH:mrh 06/30/2010
Page 3 of 5
55
56
owner or partner devotes more than 1,920 hours per year to the business, that person
must be counted as one employee for RGRL purposes.
3. Where there are employees who work less than 1,920 hours per year, the
total number of hours worked by all such employees during the previous year shall be
added together and divided by 1,920. A fraction of one -half or over shall be rounded
up Hours worked by persons who are defined as employees for RGRL purposes must
be included in the calculation even if the business is not required to report to L &I
concerning such persons.
4. The results from subsection B.2 of this section plus subsection B.3 of this
section shall be the total number of employees used to determine the amount of the
RGRL.
C. New Businesses. The RGRL fee for a business that did not submit reports for
each of the last 4 quarters to L &I shall be based on the estimated number of employees
of that business. The business shall provide its estimate of the average number of
employees for the upcoming year The City will determine the number of employees
that will be used in calculating the amount of the RGRL. If, during the license year, the
City determines the actual number of employees is significantly different than
estimated, the amount of the RGRL fee will be recalculated for the new business. If the
revised RGRL fee is higher, the business must pay the difference within thirty days after
notification.
D. Over Reporting Number of Employees. A business may request that the City
refund RGRL overpaid on the basis that the business miscounted the number of
employees by an error factor of more than 15% The request must be in writing and the
City must receive the request and all supporting documentation no later than 60 days
after the end of the licensee's fiscal year in which the error was made. If the City is
satisfied the licensee paid an excess RGRL, the City will refund the excess RGRL paid
by the licensee.
E. Under Reporting of Employees. If the City determines the number of
employees was under reported at the time of application or renewal by an error factor
of more than 15 the business shall pay the balance of the applicable RGRL fee
together with a penalty of 20% of such balance due. The business shall also reimburse
the City for any accounting, legal, or administrative expenses incurred by the City in
determining the under- reporting or in collecting the additional amounts. The Finance
Director shall mail written notice of the amount to be paid and the business shall pay
said amount to the City within 30 days. If the City does not receive timely payment, an
additional penalty shall be added, applying the schedule for late payments in this
chapter.
5.62.040 Exemptions.
A. Exemptions. The following entities may claim an exemption from the license
fee, but if exempt under this subsection such entities shall still register under this
chapter:
1. Certain Organizations Exempt from Federal Income Tax. An organization
that files with the city a copy of its current IRS 501(c)(3) exemption certificate issued by
the Internal Revenue Service.
2. A governmental entity that engages solely in the exercise of governmental
functions. Activities which are not exclusively governmental such as some of the
activities of a hospital or medical clinic, are not exempt under this chapter
3 A nonprofit business operated exclusively for a religious purpose, upon
furnishing proof to the finance director of its nonprofit status. For the purposes of this
chapter, the activities that are not part of the core religious functions are not exempt.
W. Word Processing Revenue Generating Regulatory License
SH:mrh 06 /30/2010
Page 4of5
4. Civic groups, service clubs, and social organizations that are not engaged in
any profession, trade, or occupation, but are organized to provide civic, service, or
social activities in the City
a. Examples of such organizations include but are not limited to:
Soroptomists; Kiwanis; Lions' Rotary; American Legion, children's and adults athletic
leagues and similar types of groups, clubs or organizations.
5.62.050 Penalties
A. Monetary Penalty. Failure to pay the RGRL fee within 20 days after the day on
which it is due and payable pursuant to TMC Section 5.62.020 shall render the business
subject to a penalty of 5% of the amount of RGRL fee for the first month of the
delinquency and an additional penalty of 5% for each succeeding month of
delinquency, but not exceeding a total penalty of 25% of the amount of such RGRL fee,
plus any accounting, legal or administrative expenses incurred by the City No
business license for the current period shall be granted until the delinquent fees,
together with penalties, have been paid in full. The Finance Director or his /her
designee is authorized, but not obligated, to waive all or any portion of the penalties
and interest provided herein in the event the Director or his /her designee determines
that the late payment was the result of excusable neglect or extreme hardship
B Collection. Any RGRL fee due and unpaid under this chapter, and all
penalties thereon, shall constitute a debt to the City and may be collected in court
proceedings in the same manner as any other debt in like amount, which remedy shall
be in addition to any and all other existing remedies.
C. Revocation of License. The Finance Director may revoke any business license
issued pursuant to this chapter to any business or other person who is in default in any
payment of any RGRL fee hereunder, or who shall fail to comply with any of the
provisions of this chapter Notice of such revocation shall be mailed to the license
holder by the Finance Director, and on and after the date thereof any such business who
continues to engage in business shall be deemed to be operating without a license and
shall be subject to any and all penalties herein provided.
D. There shall be a penalty of not less than $50.00 to reinstate any business license
revoked through nonpayment of the RGRL fee.
Section 2. 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 3. 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 and effect
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 thereof this day of 2010.
ATTEST/ AUTHENTICATED.
Christy O'Flaherty, CMC
APPROVED AS TO FORM BY
Office of the City Attorney
W: Word Processing Revenue Generating Regulatory License
SH:mrh 06/30/2010
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council.
Published.
Effective Date:
Ordinance Number
Page 5 of 5
57
58
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, AMENDING ORDINANCE NO. 2258 §1. (PART), AS CODIFIED
AT TUKWILA MUNICIPAL CODE CHAPTER 3.54, EXTENDING THE CITY
UTILITY TAX SUNSET PROVISION; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, at the time Ordinance No. 2258 was passed, the City Council wished to
provide a sunset provision for the collection of City utility taxes; and
WHEREAS, the City Council and Mayor have reviewed the current General Fund status
and operating budget and determined that it is in the best interest of the citizens of Tukwila to
extend the current sunset provision to 2015;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. TMC 3.54.030 Amended. Ordinance No 2258 §1 (part), as codified at TMC
Section 3.54.030, is hereby amended as follows:
A. There is levied upon water, sewer and surface water utilities, taxes in the amount
to be determined by the application of rates given against gross earnings as follows:
1. Upon the City water, sewer and surface water funds, a tax equal to 15% of the
total gross revenue from such business from all customers in the City during the period for
which the tax is due. Such tax shall be effective from December 31, 2008 through April 30,
2010.
2. Upon the City water, sewer and surface water funds, a tax equal to 10% of the
total gross revenue from such business from all customers in the City during the period for
which the tax is due. Such tax shall be effective from May 1, 2010 through December 31,
2014 2015.
Section 2. 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 3. 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 and effect 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 thereof this day of 2010
ATTEST/ AUTHENTICATED
Christy O'Flaherty, CMC
APPROVED AS TO FORM BY
Office of the City Attorney
DRAFT
W \Word Processing\ Ordinances\ Utility Tax Sunset Extension.docx
SH:mrh 06 /28/2010
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council.
Published.
Effective Date:
Ordinance Number
Page 1 of 1
59
60
DRAFT
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, AMENDING ORDINANCE NO. 2179 §2 (PART), AS
CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 5.04, REVISING
THE CITY'S BUSINESS LICENSE FEE SCHEDULE; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council recognizes the City of Tukwila is in need of additional
revenue sources in order to address a dramatic decline in recent sales tax collections;
and
WHEREAS, the City of Tukwila's business license regulations have been
established to ensure the legal conduct of businesses; to assist in the effective
administration of health, fire, building, zoning and other codes of the City; and to
provide a means for obtaining public information and compiling statistical information
on existing and new businesses within the corporate limits of the City of Tukwila, and
WHEREAS, the City Council and Mayor are in the process of implementing
permanent reductions to the General Fund operating budget; and
WHEREAS, such expenditure reductions are not sufficient to fully account for the
recent decline in revenue, the City Council has determined it is in the best interest of
Tukwila citizens and businesses to provide long -term financial stability, rather than
continuing to use one -time cost savings measures, to address unplanned economic
challenges the City might be faced with in the future,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. TMC 5.04.020 Amended. Ordinance No. 2179 §2 (part), as codified at
TMC Section 5 04.020, "Application and fees required" is hereby amended as follows:
A. Any person desiring to establish or conduct any business enterprise or
undertaking within the corporate limits of the City shall first apply to the City Clerk for
a license to conduct such business. The application shall be upon a form furnished by
the Clerk on which the applicant shall state the company name and address; the nature
of the business activity or activities in which he desires to engage; the place where the
business will be conducted; the number of employees, whether full or part -time, on the
payroll as of January 1, or, if a new business, the number to be employed on the
opening date; and other information pertaining to the business as required by the City
B The application must be accompanied by a check, cash or money order for the
amount of the license fee. All fees will be based on the number of employees, whether
full or part -time, as follows:
0 to 2010 $100.00
2111 to 50 20 $150.00
5121 to 108 50 S200.00 $300.00
51 to 100 $400.00 (NEW)
101 and up $380.D0 $600.00
Home Occupation
(pursuant to TMC 5 04.010) $50.00
W Word Processing Busyness License Fee Increase
SH:rnh 07/07/2010
Page 1 of 2
61
62
Section 2. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 3. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force
January 1, 2011.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of 2010.
ATTEST/ AUTHENTICATED
Christy O'Flaherty, CMC
APPROVED AS TO FORM BY:
Office of the City Attorney
W Word Processing Business License Fee Increase
SHanh 06/28/2010
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council.
Published:
Effective Date:
Ordinance Number
Page 2 of 2
rn M o o)
o �0 c0 rn 0
co 0 0
c d r:
I; L0 r N
S. 0
r
CO
ER r
0 6, M M, t to I
c) f t' O S\
?-11' p 6N) N M
N
va
1
O
O 0
O 0
0)
N as o
N
N
I1 C LJ,
t6 fl- O N
O O O
o p n o
o 1 N N n)
N u-). N
o2S
O
CO N O O co
c^6 R p t O O O 0 O 0 N O 0
0 0 0 0 0 0 0 0 0 co 00 `,r0 N N 0
N W c'7 O c M O CD N
N N r N M 'rr, O• o
ea a 04 7 S 9 C r, p 0
Q
7 7 W$ 7 o O "O N N O
O O- N N@ O N
fl N
11 7 O' c 0 7' O N 0
N s- N l6 'O V O N
v U -e N 7 7 0..',33-- N o
G a O a V O 2. cr O• LT O- N 6 N 3
i 7 O- N 2 c a) y' G d E O N N
C 0 U) j Q- e N N O J O N '6
N
O Q (n 0 N N O
•U N N fl- N
I1] G O
o 0 R -a x o -iii oN o m
7 c c c11 U e- o U O
X Q LS) 0- N d) 0 1 r. N
T> N N 6 R N N
N N N 7 a) C. S]-
(n u W (f)
O V 'Po
0)
as
as
L-
C)
C
iv' N O
re
d W
O
a o
0 4
Q
fQ CD
c
0
O
6
CD
N
W
O
N
n
N
N
N
co
_O
C I O O 0 N O d 0
N 69 N
CO
69 69
O e
Og N_
N
1 to
0
a
w
CO
a9
0 0
of
N
tP
N. n
N
+'0 g
co
69
ai
N
co' 1-
N 0
07
r O h N b
N g n
o N rn w w
N
Vre W
O CO
N
Fs
O O
069 N ti
to-
o r
H N
O r
R
O N
N O 69 t C.,
g 0 O O t0 N
69 CO
7 W
O 69 vi
O
7 1-
O fh
N
e 0 0 e' 69 CO 0
r on O o ro 40
0 O 19 i tt o O M a m 0 17
O 69 O N M
H
o n
0
e 0 w
480 l m e A
O N
0, a N g t j N
N CO f7 CO
CO
M 0 69 N tT h O r co
tt0 6Y N
to 49
O
e 0
0 a 69 N 6 6
g O N O h A tri
M H N
N O
w y
N
O
us
e G a t9 N C
N P1
O N K 0 p h
O M
CO
69
4
O 69 <0 ti
H H
0-
oo
O
1'
W
CO
N
N
M
I
N
0
h
69
1
N
N
CO
M
W
co
CO
N
N
69
e 96 69
2 O V
G 0 W
69
O
69
N
e N H
h 0 o n
N
tD
69
0
N
K
N
10 4)
e 6 A 69
0 0 0 00
N N m O
to
M 4
0
H
0)
O 0 M.
O
e 69 69 0
to u 2 0 vl
N M K
O
69
69
00
69
I H
IN
O
EA
r
W
0
v
69
'0
tT
N
O
I 6A
0)
6A
69
40
10
00
69
69
REVENUES
Monthly Water Charges (1)
Cascade Water Alliance (CWA)
Regular City Water
Other Miscellaneous Revenue (2)
Regional Grant
Water Connection Fees (3)
Total Revenues
ATTACHMENT D
City of Tukwila
WATER ENTERPRISE FUND
2011 2016 Analysis in 000's
2011 2012 2013 2014 2015 2016 Totals
10 +10% +10% +10% +10%
1,980 2,039 2,100 2,163 2,228 2,300 12,810
2,756 2,893 3,038 3,190 3,350 3,517 18,744
215 235 250 255 260 275 1,490
0 0 0 0 0 0 0
25 25 50 75 75 80 330
4,976 5,192 5,438 5,683 5,913 6,172 33,374
EXPENDITURES
CWA Purchased Water (4) 1,980 2,039 2,100 2,163 2,228 2,300 12,810
Water Operations Maintenance 1,397 1,442 1,488 1,547 1,609 1,658 9,141
Debt Service (6) 554 555 553 555 550 162 2,929
Interfund Utility Tax (7) 10% 495 517 539 561 584 609 3,304
Working Capital Reserve Fund 292 292 292 292 25 25 1,218
Engineering Labor (8) 75 77 79 82 84 87 484
Subtotal 4,793 4,922 5,051 5,200 5,080 4,841 29,886
Water Capital CIP Program (9) 1,670 1,050 691 1,174 1,180 1,295 7,060
Total Expenditures 6,463 5,972 5,742 6,374 6,260 6,136 36,946
Cash Flow Year by Year (1,487) (780) (304) (691) (347) 36 (3,572)
Carryover from 2010 6,276 0 0 0 0 0 6,276
Accumulated Totals 4,789 4,009 3,705 3,015 2,668 2,704
65
ATTACHMENT E
City of Tukwila
SEWER ENTERPRISE FUND
2011 2016 Analysis in 000's
REVENUES 2011 2012 2013 2014 2015 2016 Totals i
Monthly Sewer Charges 20% 20% 20% 20% 15% 15%
King County Metro Sewer (1) 3,572 3,580 3,915 4,032 4,233 4,317 23,649
Regular City Sewer (2) 1,488 1,741 2,037 2,384 2,693 3,044 13,387
Other Misc. Revenue (3) 102 107 150 175 200 200 934
Sewer Connection Fees (4) 120 120 150 150 200 200 940
Total Revenues 5,282 5,548 6,252 6,741 7,326 7,761 38,910
EXPENDITURES I
Sewer Operations Maintenance
King County Metro Sewer (5) 3,572 3,580 3,915 4,032 4,233 4,317 23,649
Regular City Sewer (6) 643 662 681 709 730 759 4,184
Debt Service (7) 357 356 355 354 352 351 2,125
Interfund Utility Tax (8) 10 516 543 610 659 713 756 3,797
Working Capital Reserve Fun 380 380 380 380 25 29 1,574
Engineering Labor (9) 75 77 79 82 84 87 484
Subtotal 5,543 5,598 6,020 6,216 6,137 6,299 35,813
Sewer Capital CIP Program 523 725 625 800 700 1,030 4,403
Total Expenditures 6,066 6,323 6,645 7,016 6,837 7,329 40,216
Cash Flow Year by Year (784) (775) (393) (275) 490 432 (1,306)
Carryover from 2010 1,385 0 0 0 0 0 1,385
Accumulated Totals 601 (174) (567) (842) (352) 79 I
66
ATTACHMENT F
City of Tukwila
SURFACE WATER ENTERPRISE FUND
2011 2016 Analysis in 000's
REVENUES 2011 2012 2013 2014 2015 2016 Total 1
+10% +5% +10% +5% +10% +5%
Annual Billings (Current) (1) 3,346 3,513 3,864 4,058 4,463 4,687 23,931
Other Revenues (2) 75 75 100 110 115 120 595
Grants /Bond Proceeds (3) 94 44 44 44 44 44 314
Total Revenues 3,515 3,632 4,008 4,212 4,622 4,851 24,840
EXPENDITURES
Operations Maintenance (4) 1,205 1,283 1,334 1,401 1,471 1,544 8,238
Debt Service (5) 370 318 316 315 313 312 1,944
Interfund Utility Tax (6) 10% 342 359 396 417 458 481 2,453
Working Capital Reserve Fund 228 228 228 228 25 25 962
Engineering Labor (7 325 335 345 356 366 377 2,104
Subtotal 2,470 2,523 2,619 2,717 2,633 2,739 15,701
SSWM Capital CIP Program (8) 1,668 1,085 849 1,300 1,384 1,123 7,409
Total Expenditures 4,138 3,608 3,468 4,017 4,017 3,862 23,110
Cash Flow Year by Year (623) 24 540 195 605 989 1,730
Carryover from 2010 1,176 0 0 0 0 0 1,176
Accumulated Totals 553 577 1,117 1,312 1,917 2,906
67
68
CAS NUMBER: 10-081
CATEGORY
SPONSOR
SPONSOR'S
SUMMARY
MTG. DATE
07/12/10
MTG. DATE
07/12/10
10 -081
Meeting Date
07/12/10
1 07/19/10
Discusszon Motion Resolution
Mtg Date 07/12/10 Mtg Date 07/19/10 Mtg Date
n Counci l n Mayor Adm Svcs DCD
COUNCIL AGENDA SYNOPSIS
Prepared by M
BJM
BJM
Initials
AGENDA ITEM TITLE Amendment to Doak Settlement Agreement
env Counal revteu)
LA
ITEM INFORMATION
I ORIGINAL AGENDA DATE: JULY 12, 2010
n Ordinance l Bid Award Public Hearing n Other
Mtg Date Mtg Date Mtg Date Mtg Date
Finance Fire Legal P&R Police Pik
RECORD OF COUNCIL ACTION
ITEM No.
I+ C
Authorize the Mayor to enter into an agreement with Doak Homes modifying terms of a
settlement agreement with the City. Specifically the following changes are proposed to
the terms 1) The agreement will be extended an additional 36 months; 2) Provisions for
waiving permit fees will be removed; and 3) The City will not expedite the review of
construction permits.
REVIEWED BY n COW Mtg. CA &P Cmte F &S Cmte n Transportation Cmte
n Utilities Cmte Arts Comm Parks Comm. n Planning Comm.
DATE: 6/28/10
RECOMMENDATIONS:
SPONSOR /ADMIN. Department of Community Development
COMMITTEE Unanimous Approval; Forward to Committee of the Whole
COST IMPACT SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$0 $0 $0
Fund Source: N/A
Comments: N/A
ATTACHMENTS
Informational Memorandum dated 6/18/10
Draft Amendment in Strikeout /Underlined Format
Photos of Completed Homes
Doak Home' Modification Request
Doak Homes' Orginal Settlement Agreement
Minutes from the Community Affairs and Parks Committee meeting of 6/28/10
b y
70
City of Tukwila
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Community Affairs and Parks
FROM: Nora Gierloff, Deputy Director
DATE: June 18, 2010
SUBJECT: Doak Settlement Agreement, Modification of Terms
ISSUE
Authorize the Mayor to amend the terms of a settlement agreement with Doak Homes Inc.
Specifically the following changes are proposed to the terms of the existing agreement:
1. The agreement will be extended an additional 36 months;
2. Provisions for waiving permit fees will be removed; and
3. The City will not expedite the review of construction permits.
BACKGROUND
Jim Haggerton, Mayor
In July of 2008, the City of Tukwila and Doak Homes, Inc. entered into a settlement agreement
regarding several properties owned by Doak Homes, Inc. in the Allentown Neighborhood of the
City. The settlement agreement resolved a federal court land use case regarding application of
the City's code to Doak's property. The agreement covered King County parcels, 017900 -1730,
017900 -1755 and 017900 -1855. These parcels are shown on Attachment B.
The agreement allowed Doak Homes, Inc to construct 14 homes on Tots that did not comply with
the City's minimum lot area requirements. The number of homes permitted under the
agreement was more than allowed under the current zoning, but less than what had been
permitted under previous development regulations. In exchange for allowing Doak Homes to
build on smaller lots, the City specified specific requirements above the basic development
standards found in the LDR zoning. These requirements included a specific site layout,
maximum building footprint limitation, use of stone on the exteriors of the homes, maximum lot
coverage limitation, and additional landscaping.
Aside from these design requirements for the 14 proposed homes, the Agreement also specified
certain financial terms and performance obligations for the City, specifically:
1. The City agreed to waive all plan check fees for the individual building permits for the
proposed homes; and
2 The City agreed to expedite the review of required permits for the proposed project.
The agreement was valid for 30 months after execution (July of 2008) and will expire in
December of 2010. (Attachment E)
W:\2010 InfoMemos \DoakHomesAmendment.doc
71
INFORMATIONAL MEMO
Page 2
DISCUSSION
Doak Homes has completed construction of two of the homes (photos of the completed homes
are included at Attachment C) and is currently working to construct two additional homes. The
homes that have been constructed and that are currently under construction are on parcels
017900 -1730 and 017900 -1755 (see Attachment B). Doak Homes has yet to start construction
of the ten homes on parcel 017900 -1855. Doak Homes must complete significant infrastructure
improvements, including installation of utilities and construction of an access road on this parcel
before single family home construction can commence.
Attachment D is Doak Homes' letter to the City requesting that the agreement be extended an
additional 36 months. Doak Homes notes that the reason for the extension request is due to the
current downturn in the housing market.
The current economic situation has impacted all construction in the City, especially single family
construction. Even during the construction boom, the City's issuance of new single family home
permits was low, on average about 30 new homes a year. However starting in 2007/2008 the
City saw a marked drop off in the number of building permits being issued for new single family
homes. In 2008 the City issued 7 permits for new single family homes; in 2009 only 2 single
family building permits were issued (both permits were issued to Doak Homes); and for the
current year, the City has only issued 2 single family building permits.
The homes constructed by Doak Homes are also providing the opportunity to test development
standards for small lot development within Allentown. The agreement specified a maximum
footprint on small Tots, maximum lot coverage, and design standards that are unique to small lot
development. In the future if the City Council chooses to develop specific development
standards for the Allentown Neighborhood, the homes constructed under this agreement could
provide a good template for possible future development standards.
If the agreement expires, Doak will be required to comply with the zoning regulations in place at
the time of submittal of a complete building permit application. Thus, on the remaining parcel,
Doak would be required to construct homes on Tots that are at least 6500 square feet in area.
Depending on lot layout, the remaining parcel could have 5 to 6 homes constructed on it under
the current zoning regulations. The design of the homes will have to comply with the City's
standard development regulations in the LDR zone, but the City would not have the ability to
control specific design elements for individual homes as is being done under the Agreement.
RECOMMENDATION
Doak Homes, Inc is one of the only builders currently doing work in the current economy so it
would seem prudent to extend the agreement in order to allow Doak Homes to complete
construction. The modified agreement will give Doak Homes an additional 36 months to attain
building permits for the ten remaining homes. In consideration of this extension, the financial
obligations of the City and requirements for expedited review will be removed. Doak Homes will
be subject to the same permit fees and permit process as all other applicants. All other terms
and conditions of the agreement will remain in place.
Staff recommends that the Council authorize the Mayor to sign the amendment and that the
item be forwarded to the July 12 Committee of the Whole Meeting for discussion with possible
action at the July 19 Regular meeting.
7 2 W:12010 InfoMemos \DoakHomesAmendment.doc
INFORMATIONAL MEMO
Page 3
ATTACHMENTS
Attachment A: Draft 1s Amendment to Settlement Agreement
Attachment B: Map
Attachment C: Photos of Completed Homes
Attachment D: Doak Homes' Modification Request
Attachment E: Doak Homes' Original Settlement Agreement
W InfoMemos \DoakHomesAmendment.doc
73
74
FIRST AMENDMENT TO SETTLEMENT AGREEMENT
BY AND BETWEEN THE CITY OF TUKWILA AND
DARRYL DOAK, SR., ESTRELLA DOAK, DARRYL DOAK, JR.,
AND DOAK HOMES, INC.
THIS FIRST AMENDMENT TO SETTLEMENT AGREEMENT (the
"Amendment is made and entered into this day of 2010, by and
between the CITY OF TUKWILA (hereinafter "City" or "Tukwila a duly organized
Washington municipal corporation, and DARRYL DOAK, SR., ESTRELLA DOAK,
DARRYL DOAK, JR., and DOAK HOMES, INC. (hereinafter collectively referred to as
"Doak").
I. RECITALS
WHEREAS, the City and Doak entered into that certain Settlement Agreement
dated July 2, 2008; and
WHEREAS, due to the economic downturn in the construction industry, Doak's
ability to complete the terms of the Settlement Agreement prior to its expiration have been
hindered, and Doak has requested an extension of the Settlement Agreement; and
WHEREAS, the City desires to cooperate with Doak by extending the Settlement
Agreement for an additional term of thirty -six (36) months in exchange for elimination of
expedited review for Doak's permit applications and elimination of permit fee waivers;
NOW, THEREFORE, in consideration of the mutual promises set forth herein and
the long -term benefit to both the City and Doak, the parties hereby amend said Agreement
as follows:
II. AGREEMENT
1. Paragraph 1, Building Permits, is hereby amended to read as follows:
6 LOTS AT 50TH AVENUE SOUTH
1. Building Permits. Tukwila agrees to approve four building permits for single
family dwellings on this property and further agrees that Doak's applications will not be
denied based on failure to meet the City's minimum lot area requirements or to otherwise
comply with Tukwila Municipal Code Section 18.70.030. Doak's building permit
applications will be reviewed in the same manner and within the same timelines as all other;
applications for building permits submitted to the City for review. Doak agrees to provide
applications.
Doak v. City of Tukwila
First Amendment to Settlement Avreement 6/21/20106/21/2010.6 /16/2010
Page 1 of 5
75
76
a.Within seven days of receiving thc building permit applications, Tukwila will
determine if the applications arc complete. In the event that Tukwila
determines that the applications are incomplete, it shall issue a "Notice of
g which items are requited fer the
oak responds to the Notice of Incomplete
Application, Tukwila shall have five days to review thc additional
information and determine if the application is complete.
b.Tukwila shall have 13 days from the determination that thc application is
complete to complete its s'
applications. In the event that a correction letter is issued, Tukwila shall
have 10 days from the date response to the correction letter is
received to review the revised plans and either approve the permit or issue
another correction letter.
c.Tukwila has met its obligations under this section once it notifies Doak that the
permits arc approved and ready for issuance.
2. Paragraph 11, Building Permits, is hereby amended to read as follows:
11 LOTS AT SOUTH 124TH STREET AND 50TH AVENUE SOUTH
11. Building Permits. Tukwila agrees to approve ten building permits for single
family dwellings on this property and further agrees that Doak's applications will not be
denied based on failure to meet the City's minimum lot area requirements or to otherwise
comply with Tukwila Municipal Code Section 18.70.030. Doak's building Hermit
applications will be reviewed in the same manner and within the same timelines as all other
applications for building Hermits submitted to the City for review, Doak agrees to provide
applications.
a.Within seven days of receiving the building permit applications, Tukwila will
determine if the applications arc completes T
determines that thc applications are incomplete, it shall issue a "Notice of
Incomplete Application," identifying which items arc required for the
Application, Tukwila shall have five days to review the additional
information and determine if the application is complete.
b.Tukwila shall have 13 days from thc determination that the application is
complete to complete its substantive review of the building permit
Doak v. City of Tukwila
First Amendment to Settlement Agreement 6/21/20106/21/20106/16/2010
Page 2 of 5
Vs response to thc correction letter is
15. Public Works Permit. All infrastructure improvements to include, but not
limited to, roadway, sidewalk, drainage, sewer and water connections, fire hydrants, curbs,
gutters, etc. shall be accomplished under a Public Works Permit. Tukwila's standard fees
shall apply for all Public Works permits. Doak agrees that Tukwila shall not grant final
occupancy approval to any of the houses associated with this Agreement until Tukwila has
finalized the Public Works permit. Doak's Public Works nenlit applications will be
reviewed in the same manner and within the same timelines as all other applications for
Public Works permits submitted to the City for review.T wila agrees to review Doak's
Public Works permit applicationc 7: :thin 30 calendar da c of submittal of complete
applications, unI_eG:; the applications are deemed incomplete or fail to meet Building,
Zoning, Public Works or Fire Code requirements (Titles 9, 11, 14, 16, 1S of the TMC)
correct any such deficiencies within the specified time periods cct—fei411-by Public Work,
t.,. Should Doak respond to a correction
each response within 30 calendar days of
its receipt.
another correction letter.
c.Tukwila has met its obligations under this section once it notifies Doak that the
3. Paragraph 1.5. Public Works Permit, is hereby amended to read as follows:,
4. Paragraph 24, Refund of Fees and Waiver of Fees, is hereby amended to read as
follows (note that footnotes 3 and 4 in the original Settlement Agreement remain in full
force and effect and said footnotes have not been re- printed here due to formatting
constraints):
24. Refund of Fees and W giver of New Fees,.
permit fees charged llc's
the demolition permits), mechanical permit fees, plumbing permit fees:
within 20 days of mutual execution of thin Agreement. Tukwila further agrees to waive all
new building plan check fccs specified by TMC 16.0'1.250(B) for the applications necessary
to implement the terns of this Agreement. Doak is responsible for the payment of the
building permit fees in the same manner as all other anplicantseffect at the time of issuance
All fees to be waived or refunded, in the approximate amount-e
$-!3,x'1 1.36, are itemized in Exhibit K attached to this Agreement. However, In addition.
Doak agrees that it is responsible for common water and sewer hook up fees, traffic impact
fees and any other fees applicable to Doak's projects that are charged in the same manner to
other properties in Tukwila.
Doak v. City of Tukwila
First Amendment to Settlement Agreement 6/21/20106/21/20106/16/2010
Page 3 of 5
'sed plans and either approve the permit or issue
and
the
77
78
5. Section 30, Expiration of This Agreement, is hereby amended to read as follows:
30. Expiration of ThisSettlement Agreement. TN-se Settlement Agreement shall
expire 3036 months from the date of mutual execution of this "en -First Amendment.
To avoid the creation of orphan lots, Doak shall develop the lots in either "adjacent order"
(e.g., lot 1, then lot 2, then lot 3, etc.) or "opposing order" (start at one end of the private
street and develop the lots on opposite sides of the street in "pairs," e.g., lots 1 10, then
lots 2 9, then lots 3 8, etc.). In no event shall orphan lots be created. Doak's
obligations set forth in Sections 23 (Compensation) and 28 (Release) shall survive
termination of this Agreement, and Doak shall be obligated to dismiss the Lawsuit and
Appeal regardless of the lack of issuance of any building permit(s). Doak shall be entitled to
develop the lots that are the subject of this Agreement in conformance with the terms of the
Agreement so long as the building permits for the properties are issued before the expiration
of the Agreement consistent with Section 20 and thereafter remain valid. Upon the
expiration of this Agreement, however, any future development of the properties that are the
subject of this Agreement and for which building permits have not been issued will be
required to comply with the Development Standards in effect at the time of any future
application.
6. This Amendment shall become effective immediately following execution by all
of the parties.
7. Except as amended herein, the terms and provisions of the original Settlement
Agreement remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused this First Amendment to be
executed, effective on the day and year set forth on the first page hereof.
CITY OF TUKWILA
James Haggerton, Mayor
DOAK HOMES, INC.
Darryl Doak, Sr., Its President
Estrella Doak, Its Vice President
Date:
Date:
Date:
Doak v. City of Tukwila
First Amendment to Settlement Agreement 6/21/20106/21/20106/16/2010
Page 4of5
Darryl Doak, Jr., Its Project Manager
Date:
Doak v. City of Tukwila
First Amendment to Settlement Agreement 6/21/20106/21/20106 /16/2010
Paze5of5
79
ME-
S 122 St
Completed Homes
Homes Under Construction
Remaining Homes to be built
S 124 St
S 125 St
City of Tukwila
Doak
Settlement
Properties IT
N
P
DOAK HOMES
PHOTO
DOAK HOMES
PHOTO
TO: JACK PACE
LETTER HAND DELIVERED TO CITY OF TUKWILA
BY: DARRYL M. DOAK, JR
PROJECT MANAGER
DOAK HOMES INC.
-11 opythzg
;APR 16 2010
PERMIT carrel;
83
84
April 15, 2010
City of Tukwila
Department of Community Development
6200 Southcenter Blvd.
Tukwila, WA 98188
DOAK HOMES INCORPORATED
11812 26 AVENUE SW
BURIEN, WA 98146
Phone 206 246 -6587 Fax 206 246 -5991
Attn. Jack Pace, Director of Community Development
Re: Doak v. City of Tukwila, Final Settlement Agreement- 7/2/2008
Dear Mr. Pace,
As we keep track of our settlement agreement of July 2, 2008, the expiration date of this agreement is
fast approaching. We were given 30 months from the above date to complete our (10) ten- home
development. The completion date is coming up on December 2, 2010.
We would like to request extension of our settlement for another three years due to the current economic
crisis. Our small business is trying to weather this storm and trying to stay afloat. Instead of closing down
our business, we are still trying to continue to build as well as to employ people. We are trying hard to
meet the deadlines as per agreement.
As you know the economy of our country has collapsed. The real estate market was terribly affected
since the end of 2008 with many bank foreclosures and repossessions, where some banks did not even
survive it and had to shut down. Consequently, there are no banks lending money to builders, most
especially speculative builders like us, as they have many foreclosed homes in their inventory.
Our company tried to find a financial institution to lend us construction money but to no avail. We had to
fund our own project which meant building one house at a time. Build one, sell it and use the funds to
build the next. This has been the most challenging situation for our company in our 21 years of
homebuilding. Currently, we have four lots that we are building on, Lots A, B, C, D. We finished and
sold Lot A on February 1, 2010 that was on the market for seven (7) months. We finally freed up the
funds to build Lot B which we just now completed. This home is closing at the end of this month. Then
we can continue to build Lot C or D. We purchased the building permits for these two lots as we felt
pressured that we needed to meet deadlines but we can only build one house at a time.
We would like to notify you that there is no possible way that we can build and finish the ten -home
development as per settlement. The real estate market is expected to improve in another three to four
years. We need at least three years extension to finish this development. You must know that the
reason is totally out of our control as the economy went into recession and the real estate market took a
big hit. Many of our counterparts, other builders, had closed down. We are trying to avoid having to
shutdown as we continue to employ ourselves and other people.
We need your understanding and consideration in this regard. We do not want to wait till the last minute
to resolve this pressing issue. We hope that you will work with us now to come up with a reasonable
Page 2
expectation for a date of completion. Again as a reminder, our company has been building and
contributing to Tukwila's community housing development for over ten years.
We are hoping to hear from you soon. Thank you for your time and consideration.
Sincerely yours,
Darryl E. Doak, SR
President and Builder
DED:tmd
85
86
SETTLEMENT AGREEMENT
THIS THIS SETTLEMENT AGREEMENT is made and entered into as of the date of
the last party signing below, by and between DARRYL DOAK, SR., ESTRELLA
DOAK, DARRYL DOAK, JR., DOAK HOMES, INC. (hereinafter collectively referred
to as "Doak and the City of Tukwila, a duly organized Washington municipal
corporation (hereinafter "Tukwila" or "the City
RECITALS
A. Doak filed a First Amended Land Use Petition, Petition for Writ of Mandate,
and Complaint for Damages against Tukwila in June 2007 in King County Superior
Court alleging various claims related to violation of the Land Use Petition Act (Chapter
36.70C RCW), 42 U.S.C. 1983, Chapter 64.40 RCW and the state and federal
constitutions, respectively King Co. Superior Court Cause No. 07- 2- 17181 -9KNT and
U.S.D.C. Cause No. 07 -1148 MJP (hereinafter collectively referred to as "the Lawsuit
The Lawsuit was removed to federal court in July 2007, was remanded to King County
Superior Court in January 2008, and remains pending. In addition Doak filed with the
City of Tukwila a "claim against the City of Tukwila for tort damages" dated June 29,
2007.
B. Doak filed an administrative appeal of Tukwila's denial of its development
permit applications for ten lots at South 124 Street and 50 Avenue South in August
2007 (hereinafter "Appeal The Appeal remains pending.
C. Doak and Tukwila now desire to settle and resolve all claims relating to the
Lawsuit and Appeal without further expense or delay.
AGREEMENT
Now, Therefore, in consideration of the mutual promises and agreements
contained herein, and for other good and valuable consideration, the parties agree as
follows:
6 LOTS AT 50TH AVENUE SOUTH
1. Building Permits. Tukwila agrees to approve four building permits for single
family dwellings on this property and further agrees that Doak's applications will not be
denied based on failure to meet the City's minimum lot area requirements or to otherwise
comply with Tukwila Municipal Code Section 18.70.030. Doak agrees to provide
Tukwila with three calendar days' notice prior to submission of the building peiiiiit
applications.
a. Within seven days of receiving the building permit applications, Tukwila will
determine if the applications are complete. In the event that Tukwila
determines that the applications are incomplete, it shall issue a "Notice of
Doak v City of Tukwila
Final Settlement Agreement 7/2/2008
Page 1 of 12
0 0 54
87
Incomplete Application," identifying which items are required for the
application to be complete. After Doak responds to the Notice of Incomplete
Application, Tukwila shall have five days to review the additional information
and determine if the application is complete.
b. Tukwila shall have 13 days from the determination that the application is
complete to complete its substantive review of the building permit
applications. In the event that a correction letter is issued, Tukwila shall have
10 days from the date Doak's response to the correction letter is received to
review the revised plans and either approve the permit or issue another
correction letter.
c. Tukwila has met its obligations under this section once it notifies Doak that
the permits are approved and ready for issuance.
2. Boundary Line Adiustment. Tukwila agrees to approve a BLA sufficient to
create 4 buildable lots with 4 separate parcel numbers. Doak agrees to provide Tukwila
with three calendar days' advance notice prior to submission of the BLA applications.
The layout of the lots shall be consistent with the layout depicted in the "Site Plan for tax
parcels 017900 -1730 and 0179001755," prepared by Alliant Engineering, attached hereto
as Exhibit A.
a. Within seven days of receiving the applications, Tukwila will determine if the
applications are complete. In the event that Tukwila determines that the
applications are incomplete, a "Notice of Incomplete Application" will be
issued that identifies which items are required for the application to be
complete. After Doak responds to the Notice of Incomplete Application,
Tukwila shall have five days to review the additional information and
determine if the application is complete.
b. Tukwila shall have 23 days from the determination that the application is
complete to complete its substantive review of the BLA applications. In the
event that a correction letter is issued, Tukwila shall have 14 days from the
date Doak's response to the correction letter is received to review the revised
plans.
c. Tukwila has met its obligations to the time period listed above once it notifies
Doak that the Boundary Adjustment Application is ready for recording. Doak
is responsible for obtaining the necessary signatures from King County and
for having the BLA application recorded with King County. Tukwila shall
not be responsible for any delays by Doak or King County in reviewing and
recording the final documents.
3. Legality of Lots Modified Via Boundary Line Adiustment. Tukwila agrees
that the four lots modified as part of the BLA application shall be considered
"conforming Lots" and, in the case of destruction of any of the houses on those lots, the
Doak v. City of Tukwila
Final Settlement Agreement 7/2/2008
88 Page 2 of 12
houses shall be allowed to be rebuilt, provided the replacement houses comply with the
development standards set forth herein.
4. Water and Sewer. Tukwila agrees to allow Doak to saw cut asphalt on 50
Avenue South to install necessary water and sewer infrastructure to the four proposed
houses. The Sewer and Water infrastructure installed by Doak shall comply with Titles
11, 14 and 16 of the Tukwila Municipal Code, and Chapters 7 and 8 of the City of
Tukwila Public Works Department's Development Guidelines and Design and
Construction Standards. Doak shall be responsible for patching the roadway in a manner
approved by Tukwila's Public Works Department. All street restoration work shall
comply with Tukwila's Public Works Standards. Doak will not be required to provide a
complete overlay for all of 50 Ave South. Doak shall be responsible for the payment of
asphalt mitigation fees charged in the same manner to other applicants. Doak agrees to
raise the elevation of the stotui water catch basin fronting the property at Doak's expense.
5. Development Standards. Doak agrees that the elevations of the four proposed
houses on 50 Avenue South will vary in design, materials and color and further agrees
to incorporate front porches and to minimize the street presence of garages on the various
elevations. The elevations and floor plans for the four proposed houses on 50 Avenue
South are attached to this Agreement as Exhibit B. The building footprint shall be
limited to 40% per lot. Doak agrees to comply with the impervious surface limitation
found in TMC 8.25.020 (E).
6. Survey Stakes. Replacement of survey stakes that allegedly have been altered
or removed by Tukwila's contractor for Phase II of the Allentown/Foster Point Water,
Sewer and Surface Water Improvement Project, R.L. Alia Company (hereinafter "Alia
is a private matter between Doak and Alia.
7. Underground Electrical Petutit. Seattle City Light "SCL inspected the
underground electrical work performed at the property, but Tukwila's contractor filled
the ditch prior to City inspection. Tukwila agrees to adopt, ratify and /or approve SCL's
inspection of this work, or otherwise sign off on the inspection, without cost to Doak.
Doak agrees to provide Tukwila sufficient proof of a favorable inspection by SCL.
11 LOTS AT SOUTH 124TH STREET AND 50TH AVENUE SOUTH
8. Small Lot Development. Tukwila agrees to allow Doak to develop 10 single
family compact houses as depicted in the following: the approved, final site plan
prepared by Alliant Engineering and attached hereto as Exhibit C; the approved
conceptual street detail attached hereto as Exhibit D; the approved elevations and floor
plans attached hereto as Exhibit E and F; the approved landscaping plan and planting
schedule attached hereto as Exhibit G; the side and rear elevation details attached hereto
as Exhibit H; and the fencing detail attached hereto as Exhibit J. It is the parties' intent
that the houses will be built and landscaping will be provided consistent with the
approved plans attached as exhibits hereto, and Doak agrees that the property will be
developed in compliance with all applicable TMC zoning requirements. Minor revisions,
Doak v. City of Tukwila
Final Settlement Agreement 7/2/2008
Page 3 of 12
89
if any, due to unforeseen circumstances, will be addressed through the Dispute
Resolution procedures set forth in paragraph 22 herein.
a. Tukwila agrees to accept that density based on 44,710 square feet divided by
6500 equals 6.9; and that 6.9 times 1.5 equals 10.35. Tukwila agrees not to
subtract the area of the private road serving the development from any density
calculation such that the density allows for development of 10 compact single
family houses. The building footprint for each lot shall be limited to 35
percent of the lot area, with the following exceptions: (1) the 35 percent
footprint limitation shall not apply to lots 2 and 3, provided applicable setback
requirements are met, consistent with the City's e -mail dated December 10,
2007, a copy of which is attached hereto as Exhibit I; and (2) the allowable
maximum building footprint for lot 8 can be 1290 (approximately 35.06389
percent).
b. Tukwila further agrees that fireplaces may extend into the setback areas, up to
a maximum of 18 inches.
c. Decks in the rear of the homes are exempt from the 35 percent footprint
limitation, provided decks are no greater than 18 inches tall, meet the side
setback requirements, and are no closer than five feet from the rear property
line. Decks cannot be placed below any required exit window nor can the
decks hinder Fire Department ladder access.
d. Backyards may be fenced; however, fences shall not extend past the rear
elevation of the homes. Doak shall construct, or cause to be constructed, a
fence parallel to South 124th Street as depicted in Exhibit J attached hereto.
9. Private Road Improvements and Maintenance. Doak agrees to construct the
private road in conformance to the conceptual street layout attached hereto as Exhibit D.
As part of the BLA application, Doak shall provide Tukwila with a copy of a shared
maintenance agreement for the private road. The private road, sidewalk, and on- street
parking shall be located within a private tract. Maintenance and ownership of this tract
shall be divided between all homes within the development. The shared maintenance
agreement shall be recorded on all lots that are subject to the BLA application. The
following note shall be placed on the face of the BLA document: "The City of Tukwila
has no responsibility to build, improve, maintain or otherwise serve the private road or
any stormwater facilities on site."
10. Environmental Review. Tukwila agrees that no further environmental review
is needed for the proposed project.
1 The individual lot area shall not include the private access road, sidewalks, or on- street parking.
2 SEPA DNS issued July 11, 2007 for the construction of ten homes.
Doak v. City of Tukwila
Final Settlement Agreement 7/2/2008
9 0 Page 4 of 12
11. Building Permits. Tukwila agrees to approve ten building permits for single
family dwellings on this property and further agrees that Doak's applications will not be
denied based on failure to meet the City's minimum lot area requirements or to otherwise
comply with Tukwila Municipal Code Section 18.70.030. Doak agrees to provide
Tukwila with three calendar days' notice prior to submission of the building permit
applications.
a. Within seven days of receiving the building permit applications, Tukwila will
determine if the applications are complete. In the event that Tukwila
determines that the applications are incomplete, it shall issue a "Notice of
Incomplete Application," identifying which items are required for the
application to be complete. After Doak responds to the Notice of Incomplete
Application, Tukwila shall have five days to review the additional information
and determine if the application is complete.
b. Tukwila shall have 13 days from the determination that the application is
complete to complete its substantive review of the building permit
applications. In the event that a correction letter is issued, Tukwila shall have
10 days from the date Doak's response to the correction letter is received to
review the revised plans and either approve the permit or issue another
correction letter.
c. Tukwila has met its obligations iinder this section once it notifies Doak that
the permits are approved and ready for issuance
12. Boundary Line Adiustment. Tukwila agrees to approve a BLA sufficient to
create 10 buildable lots with 10 separate parcel numbers. Doak agrees to provide
Tukwila with three calendar days' advance notice prior to submission of the BLA
applications.
a. Within seven days of receiving the applications, Tukwila will determine if the
applications are complete. In the event that Tukwila determines that the
applications are incomplete, a "Notice of Incomplete Application" will be
issued that identifies which items are required for the application to be
complete. After Doak responds to the Notice of Incomplete Application,
Tukwila shall have five days to review the additional information and
determine if the application is complete.
b. Tukwila shall have 23 days from the determination that the application is
complete to complete its substantive review of the BLA applications. In the
event that a correction letter is issued, Tukwila shall have 14 days from the
date Doak's response to the correction letter is received to review the revised
plans.
c. Tukwila has met its obligations to the time period listed above once it notifies
Doak that the Boundary Adjustment Application is ready for recording. Doak
Doak v. City of Tukwila
Final Settlement Agreement 7/2/2008
Page 5of12
91
13. Legality of Lots Modified Via Boundary Line Adiustment. Tukwila agrees
that the 10 lots modified as part of the BLA application shall be considered "conforming
lots" and, in the case of destruction of any of the houses on those lots, the houses shall be
allowed to be rebuilt, provided the replacement houses comply with the development
standards set forth herein.
14. Water and Sewer. In the same manner as other new building permit
applicants, Doak agrees that it is responsible for installation of waterlines and water
meters as necessary to service the 10 proposed compact single family houses. The Sewer
and Water infrastructure installed by Doak shall comply with Titles 11, 14 and 16 of the
Tukwila Municipal Code, and Chapters 7 and 8 of the City of Tukwila Public Works
Department's Development Guidelines and Design and Construction Standards.
Planning staff has confirmed that three sewer stubs have been located along the property,
and Tukwila agrees to permit Doak to connect more than one house per sewer stub. Prior
to final approval by Tukwila's Public Works Department, Doak agrees to sign and have
recorded a shared maintenance agreement for the shared sewer stubs and to have
recorded a hold harmless provision on all lots absolving the City of liability with regards
to having a shared sewer stub. The language of the shared maintenance agreement for the
shared sewer stubs, as well as the hold harmless provision absolving the City of liability
with regard to houses having shared sewer stubs, shall be subject to the prior approval of
Tukwila's Public Works Department. Doak is free to remove any pavement installed by
the City that encroaches on Doak's property.
15. Public Works Permit. All infrastructure improvements to include, but not
limited to, roadway, sidewalk, drainage, sewer and water connections, fire hydrants,
curbs, gutters, etc. shall be accomplished under a Public Works Permit. Tukwila's
standard fees shall apply for all Public Works permits. Doak agrees that Tukwila shall
not grant final occupancy approval to any of the houses associated with this Agreement
until Tukwila has finalized the Public Works permit. Tukwila agrees to review Doak's
Public Works permit applications within 30 calendar days of submittal of complete
applications, unless the applications are deemed incomplete or fail to meet Building,
Zoning, Public Works or Fire Code requirements (Titles 9, 11, 14, 16, 18 of the TMC)
pursuant to Tukwila's issuance of a correction letter, in which case Doak will be allowed
to correct any such deficiencies within the specified time periods set forth by Public
Works standards and generally applied to other applicants. Should Doak respond to a
correction letter issued by Tukwila, Tukwila agrees to review such response within 30
calendar days of its receipt.
16. Extension of Underground Utilities and Demolition Penults. Tukwila agrees
to extend the expiration period of existing underground utilities and demolition permits
for six months from the date of final execution of this Agreement by the parties. The
Doak v City of Tukwila
Final Settlement Agreement 7/2/2008
92 Page 6of12
is responsible for obtaining the necessary signatures from King County and
for having the BLA application recorded with King County. Tukwila shall
not be responsible for any delays by Doak or King County in reviewing and
recording the final documents.
City will grant no extensions to these permits. If the permits expire, Doak is required to
obtain new permits in the same manner as other applicants within the City and shall be
responsible for all associated costs.
GENERAL PROVISIONS
17. Building Plans. Tukwila agrees to return all unused building plans previously
submitted by Doak; however, Tukwila must retain one set of originals for each building
permit submitted in order to comply with Washington State records retention
requirements.
18. Building and Fire Code. Doak agrees that it is required to construct all
proposed structures in compliance with Title 16 of the TMC. With regards to Fire
requirements, the proposed houses on the larger parcel will not comply with distance
requirements from the existing fire hydrants. Thus, Doak must install a fire hydrant or
hydrants in order to comply with the prescribed distance standards. However, if
residential fire sprinklers are installed in all of the houses, Tukwila will waive the fire
hydrant requirement.
19. Stoiniwater. Doak is required to comply with the 1998 King County Surface
Water Design Manual in the same manner as other members of the public.
20. Expiration of Permits. All building permits issued before the expiration of
this Agreement shall expire within the time frames established in the International
Building Code pursuant to TMC 16.04.020 (2)(a). All building pennlits shall expire
within 180 days of permit issuance if no work is commenced or work is abandoned.
Doak understands that Tukwila shall not provide any extensions to the subject building
permits. Should a building pennit expire for a lot subject to this Agreement, any new
permit application for that lot will not be afforded the benefits of the expedited
procedures set forth in paragraphs 1 and/or 12 or the fee waivers set forth in paragraph
24, but will be subject to the regular permit process and fee schedule applied to other
applicants within the City. Such new penults shall, however, be afforded the benefits of
the remainder of this Agreement provided that they are issued prior to the expiration of
the Agreement. Tukwila will not waive any permit fees should new permits need to be
obtained.
21. Sinnle Contact Person. Tukwila agrees that Brandon Miles, or his successor,
will be the single point of contact on behalf of Tukwila to coordinate any concerns
between Tukwila and Doak with respect to the subject developments and implementation
of the teinis of this Agreement. However, the single contact person shall not be
responsible for coordinating building, fire or public works inspections, and Doak shall
utilize the City's standard procedures for such inspections.
22. Dispute Resolution. This section shall govern any disputes or questions of
interpretation of this Agreement that may arise between the parties. The parties agree
that cooperation and communication are essential to resolving issues efficiently. The
Doak v City of Tukwila
Final Settlement Agreement 7/2/2008
Page 7 of 12
93
Parties agree to exercise their best efforts to resolve any disputes that may arise through
this dispute resolution process rather than through other external means. The parties
agree to use their best efforts to prevent and resolve potential sources of conflict at the
lowest level and to use good faith negotiations by engaging in the following dispute
escalation process should any such disputes arise:
a. Level One. The Doaks and Senior Planner Brandon Miles, or his successor,
shall meet to discuss and attempt to resolve the dispute in a timely manner. If
they cannot resolve the dispute within ten (10) calendar days after referral of
that dispute to Level One, either party may refer the dispute to Level Two.
b. Level Two. The Doaks and Planning Supervisor Minnie Dhaliwal, or her
successor, shall meet to discuss and attempt to resolve the dispute in a timely
manner If they cannot resolve the dispute within ten (10) calendar days after
referral of that dispute to Level Two, either party may refer the dispute to
Level Three.
c. Level Three. The Doaks and Department of Community Development
Director Jack Pace, or his successor, shall meet to discuss and attempt to
resolve the dispute in a timely manner
d. In the event the dispute is not resolved at Level Three within ten (10) calendar
days after referral of that dispute to Level Three, the parties are free to file suit
or agree to alternative dispute resolution methods such as mediation or
arbitration. At all times prior to resolution of the dispute, the parties shall
continue to perform under this Agreement in the same manner and under the
same terms as existed prior to the dispute to the extent possible.
23. Compensation. Upon execution of this Agreement, Doak agrees to dismiss
with prejudice the pending Lawsuit and Appeal and to fully release and waive all claims
against Tukwila, including attorneys' fees and costs, as more specifically agreed to in
Paragraph 28 of this Agreement, and Tukwila shall pay Doak the amount of Fifty
Thousand Dollars ($50,000.00 U.S.) by check within 20 days of mutual execution of this
Agreement.
24. Refund of Fees and Waiver of New Fees. Tukwila agrees to refund all
building permit fees charged by Tukwila's Department of Community Development (not
including the demolition permits), mechanical permit fees, plumbing permit fees and the
administrative appeal fee previously paid by Doak with respect to the subject properties
within 20 days of mutual execution of this Agreement. Tukwila further agrees to waive
all new building plan check fees specified by TMC 16.04.250(B) for the applications
necessary to implement the terms of this Agreement. Doak is responsible for the
payment of the building permit fee at the time of issuance of the building permits. All
fees to be waived or refunded, in the approximate amount of $43,814.36, are itemized in
Doak v. City of Tukwila
Final Settlement Agreement 7/2/2008
94 Page 8 of 12
Exhibit K attached to this Agreement. However, Doak agrees that it is responsible for
common water and sewer hook up fees, traffic impact fees and any other fees applicable
to Doak's projects that are charged in the same manner to other properties in Tukwila.
25. Attorneys' Fees and Costs. The parties to this Settlement Agreement agree
that each party shall be responsible for its own attorneys' fees and costs incurred in
resolving this dispute and entering into this Settlement Agreement. Should any party
undertake any legal action arising from this Agreement, attorneys' fees and costs shall be
awarded to the prevailing party in the event that the non prevailing party's position is
found to be frivolous.
26. Non -Legal Costs. Tukwila and Doak shall bear their own non -legal fees and
costs, including but not limited to architect and engineering fees and costs, as they were
originally incurred in connection with the matters covered by this Agreement.
27. Transferability. Doak may assign this Agreement to another party upon not
less than sixty (60) days' prior written notice to the City and attainment of Tukwila's
prior approval, which approval shall not be unreasonably withheld.
28. Release by Doak. Doak, on behalf of itself, its affiliates, and its successors
and assigns, releases and forever discharges and covenants not to sue with respect to any
and all claims, rights, demands, and causes of action, whether known or unknown,
liquidated or unliquidated (including attorneys' fees and costs), which Doak has, had, or
could have asserted against Tukwila, its affiliates, its past or present officers, elected
officials, directors, agents, representatives, past or present employees and their respective
heirs, executors or administrators and assigns, and that arose from the beginning of time
to the date of this Agreement and which relate in any way to the matters that were raised
or could have been raised in the Lawsuit and/or Appeal and/or the claim against Tukwila
for tort damages dated on or about June 29, 2007 and filed with the City on behalf of
Doak.
29. Release by Tukwila. Tukwila, on behalf of itself, its affiliates and its
successors and assigns, releases and forever discharges and covenants not to sue with
respect to any and all claims, rights, demands, and causes of action, whether known or
unknown, liquidated or unliquidated (including attorneys' fees and costs), which Tukwila
has, had, or could have asserted against Doak, its affiliates, its past or present officers,
directors, agents, representatives or employees and its respective heirs, executors, or
administrators and assigns, and that arose from the beginning of time to the date of this
3 This amount represents a good faith estimate based on current information and the exact amount refunded
and waived could vary and will be determined at the time of building permit submittal.
4 Doak shall not be required to comply with TMC 14 17.050's condition of full payment of the King
County Sewer Capacity Charge prior to issuance of a building peiuuit for any property described in this
Agreement. Doak remains responsible for compliance with the King County Code for all King County
Sewer Capacity Charges and must disclose such charges as outstanding obligations on the Seller's
disclosure statement per RCW 64.06.020 for each of the properties subject to this Agreement.
Doak v. City of Tukwila
Final Settlement Agreement 7/2/2008
Page 9 of 12
95
Agreement and which relate in any way to the matters that were raised or could have
been raised in the Lawsuit and/or Appeal.
30. Expiration of This Agreement. This Agreement shall expire 30 months from
the date of mutual execution of this Agreement. To avoid the creation of orphan lots,
Doak shall develop the lots in either "adjacent order" (e.g., lot 1, then lot 2, then lot 3,
etc.) or "opposing order" (start at one end of the private street and develop the lots on
opposite sides of the street in "pairs," e.g., lots 1 10, then lots 2 9, then lots 3 8,
etc.). In no event shall orphan lots be created. Doak's obligations set forth in Sections 23
(Compensation) and 28 (Release) shall survive termination of this Agreement, and Doak
shall be obligated to dismiss the Lawsuit and Appeal regardless of the lack of issuance of
any building permit(s). Doak shall be entitled to develop the lots that are the subject of
this Agreement in conformance with the terms of the Agreement so long as the building
permits for the properties are issued before the expiration of the Agreement consistent
with Section 20 and thereafter remain valid. Upon the expiration of this Agreement,
however, any future development of the properties that are the subject of this Agreement
and for which building permits have not been issued will be required to comply with the
Development Standards in effect at the time of any future application.
31. No Admission. This Agreement is not an admission of liability or
wrongdoing by either party.
32. Choice of Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Washington.
33. Free Will. Doak and Tukwila hereby represent and warrant that its
representatives have entered into this Agreement of their own free will and in accordance
with their own judgment and upon advice of their own legal counsel and state that they
have not been induced to enter into this Agreement by any statement, act or
representation of any kind or character on the part of anyone except as expressly set forth
in this Agreement.
34. Authority. The individual signatories to this Agreement represent that they
have been duly authorized to execute this Agreement on behalf of the parties they purport
to represent herein.
35. Amendments. This Agreement may not be amended or modified except by a
writing, signed by the parties to be bound thereby, or signed by their respective attorneys
as authorized.
36. Notices. All notices, demands, requests, and other communications required
or peiiuitted hereunder shall be in writing and shall be deemed delivered on the earlier of
(i) three days after posting of registered or certified mail, postage prepaid, addressed to
the addressee at its address set forth below or (ii) actual receipt by the addressee, at the
address listed as follows:
Doak v. City of Tukwila
Final Settlement Agreement 7/2/2008
96 Page 10of12
TO CITY:
City of Tukwila
Attn: City Clerk
6200 Southcenter Blvd.
Tukwila, WA 98188
With a copy to:
Ms. Shelley Kerslake, Esq.
Kenyon Disend, PLLC
11 Front St. S.
Issaquah, WA 98027
TO DOAK:
Doak Homes, Inc.
11812 26th Avenue SW
Burien, WA 98146
With a copy to:
Mr. Charles Klinge, Esq.
Groen, Stephens Klinge, LLP
11100 N.E. 8 Street, Suite 750
Bellevue, WA 98004
37. Entire Agreement. This Agreement constitutes the final written expression of
all the teinis of this Agreement and is a complete and exclusive statement of the teinis of
the Agreement.
38. Counterparts. This Agreement may be executed in counterparts by one or
more of the parties named herein and all such counterparts once so executed shall
together be deemed to constitute one final agreement, as if one document had been signed
by all parties hereto; and each such counterpart, upon execution and delivery, shall be
deemed a complete original, binding the parties to this Agreement. This Agreement may
close with the use of facsimile signatures.
39. Effectiveness. This Agreement shall become effective immediately following
execution by all of the parties; provided, however, that the releases as described in this
Agreement shall not take effect until Doak has received from Tukwila the settlement
payment described in Paragraph 17.
Doak v. City of Tukwila
Final Settlement Agreement 7/2/2008
Page 11 of 12
97
40. Captions. The captions contained in the paragraphs of this Agreement are for
convenience of reference only and do not in any way limit, expand or modify the tee ns or
provisions of this Agreement.
CITY OF TUKWILA
Mayor
DOAK HOMES, INC.
/004i
fiat Doak, Sr! Its fresident
Estrella Doak, Its Vice President
Doak v. City of Tukwila
Final Settlement Agreement 7/2/2008
98 Page l2of12
U'
D eKk, dr., s .o <t Manager
Date: 1
Date: 1 3 a
Date: 7-3- glY0
Date: 7- 3. 2
City of Tukwila
Community Affairs and Parks Committee
COMMUNITY AFFAIRS AND PARKS COMMITTEE
Meeting Minutes
June 28, 2010 5:00 p.m.; Conference Room #3
PRESENT
Councilmembers: Joe Duffle, Chair; Joan Hernandez and Verna Seal
Staff: Dave Johnson, Kirstin May, Ahmed Abdirizak (Parks Recreation intern), Jack Pace, Nora
Gierloff, Brandon Miles, Bob Benedicto, Evie Boykan and Kimberly Matej
CALL TO ORDER: Committee Chair Duffle called the meeting to order at 4:59 p.m.
L PRESENTATIONS No presentations.
II. BUSINESS AGENDA
A. Amendment to Doak Homes. Inc. Settlement Agreement
Staff is seeking Council approval to authorize the Mayor to amend the terms of an existing settlement
agreement with Doak Homes, Inc.
In May 2008, the City Council approved a settlement with Doak Homes regarding the development of
certain residential properties in the City. Shortly after the settlement was reached, the housing market began
to deteriorate. In response to the housing economy, Doak has requested a 36 -month extension of the
agreement which, most significantly, allows Doak to build homes on smaller lots.
Currently, Doak is one of the few builders actively building in Tukwila, and the four homes they have built
to date are appealing and complement the neighborhood. Therefore, staff recommends extending the
settlement agreement with the following two changes:
1) Permit fees will not be waived, as per the original settlement; and
2) The Permit process will not be expedited, as per the original settlement.
UNANIMOUS APPROVAL. FORWARD TO JULY 12 COW FOR DISCUSSION.
B. Ordinance: 2009 State Building Code
Staff is seeking Council approval of a draft ordinance adopting the 2009 State Building Code with local
amendments. The City will need to adopt the 2009 State Building Code in order to comply with the
requirement that minimum performance standards and objectives in the City of Tukwila not be less than
those contained in the State Building Code.
Changes to the State Building Code are made in three year cycles, with the last update being in 2006. The
2009 process seemed to be especially arduous, and the State was late in forwarding the completed
amendments, which are usually adopted by local jurisdictions by July 1. In addition to administrative
changes, the proposed draft ordinance includes two local amendments relative to Tukwila:
Permit fee schedule and process related to damage from flooding and /or natural
disasters; and
Language that clarifies and further defines work exempt/not exempt from permits.
There are two additional items that will not be adopted at this time. Due to the complexity of these issues,
the items will be worked on jointly by Fire and Community Development Departments and will come to the
Finance Safety Committee under separate cover once completed. Those items are:
1) Mandatory fire sprinkler systems; and
2) Provisions for high -rise buildings; and
3) Provisions for five -story (usually four -story maximum), Type VA construction buildings
99
100
CAS NUMBER: 10-073
EXPENDITURE REQUIRED
$0
Fund Source: N/A
Comments N/A
COUNCIL AGENDA SYNOPSIS
Inztzals
Meeting Date Prepared by Mavzew Council review
06/28/10 BM 9JIR
07/12/10 BM
ITEM INFORMATION
1 ORIGINAL AGENDA DATE: JUNE 28, 2010
AGENDA ITEM TITLE Review of the Planning Commission Recommended Draft Sign Code
CATEGORY Discussion Motion Resolution n Ordinance Bad Award Public Heanng n Other
Mtg Date 7/12/10 Mtg Date Mtg Date Mtg Date Mt8 Date Mtg Date 6/28/10 Mtg Date
SPONSOR in Council Mayor Adm Svcs DCD Finance Fire n Legal P6-R Police n PWI
SPONSOR'S In 2007, the City Council identified a need to update the City's sign code because only
SUMMARY piecemeal changes had been made since it was adopted in 1982. The City Council formed
a Sign Code Advisory Committee to assist in rewriting the sign code. The work of the
Committee has been reviewed by the Planning Commission and the Planning Commission
Recommended Draft Sign Code is ready for review and consideration by the City Council.
REVIEWED BY COW Mtg. CA &P Cmte 1 1 F &S Cmte
Utilities Cmte Arts Comm Parks Comm. 1 1 Planning Comm.
DA1 6/14/10 CAP, 6/28/10 COW
RECOMMENDATIONS:
SPONSOR /ADMIN. Department of Community Development
COMMIriLE No Recommendation on adoption, forward to C.O.W for discussion
COST IMPACT FUND SOURCE
AMOUNT BUDGETED APPROPRIATION REQUIRED
$0 $0
n Transportation Cmte
MTG. DATE RECORD OF COUNCIL ACTION
06/28/10 Forward to 7/12/10 Committee of the Whole meeting
7/12/10
MTG. DATE J ATTACHMENTS
06/28/10 J Informational Memorandum dated June 22, 2010
Ordinance in draft form
Sign Code Comparison Matrix
Minutes from the Community Affairs and Parks Committee meeting of 06/14/10
Legislative History Index
7/12/10 Informational Memorandum dated 7/2/10, with matrix attachments
J (Please bring your 6/28/10 C.O W packet and Sign Code binders)
ITEM NO.
101
102
City of Tukwila
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Committee of the Whole
FROM: Nora Gierloff, Deputy DCD Director
DATE: July 2, 2010
SUBJECT: Sign Code Update
ISSUE
Continue deliberations on the Planning Commission Recommended Draft Sign Code.
BACKGROUND
At the June 28, 2010 Committee of the Whole Meeting, staff provided an overview of the
Planning Commission Recommended Draft Sign Code. After Staff's presentation, the City
Council conducted a public hearing and received both written and oral testimony on the Draft
Sign Code.
Testimony was received from the following individuals:
Mon Wig, Owner of Wig Properties
Pam Carter, Resident
Nicholas Lee, Wesfield, LLC
Bob Schofield, Seattle Retail
Karlyne Iwata, Property Owner
Jerome Baruffi, Property Owner
Written (both mailed and emailed) comments were also provided from the following
individuals /groups:
1. Westfield, LLC, dated June 28, 2010
2. James Adams, BECU dated June 28, 2010
3. Jerome Baruffi, 401 Strander, dated June 25, 2010
4. Letter from NW Sign Council dated June 22, 2010
5. Letter from National Sign Co. dated April 22, 2010
Jim Haggerton, Mayor
Following closure of the public hearing, the City Council provided guidance to staff on what
information they wanted to help Council with their deliberations. The following documents are
provided for the Council's review and to supplement the record that was forwarded to the City
Council on June 28, 2010:
1. Matrix of substantive comments, both oral and written, provided to the City Council and
staff's response to those comments, including suggested changes where applicable.
2. Matrix comparing selected cities sign regulations to Tukwila's Draft Sign Code and
existing Sign Code.
3. Example of Digital Display (to be provided at meeting using overhead)
W I nfoMemos \SignCodeAgain.doc
103
INFORMATIONAL MEMO
Page 2
The Council also inquired about the provisions for use of digital displays in residential zones. It
was the unanimous consensus of the Sign Code Advisory Committee to allow digital displays,
similar to the one found at Foster High School, for institutional uses within residential zones.
The Draft Sign Code, under TMC 19.20.030 provides the same standards that were used for the
Foster High School Sign. These standards are as follows:
One monument sign per premise, as permitted under Section 19.20.030.B, may contain a
dynamic feature. The following design standards apply to all dynamic signs installed under this
section:
seconds.
b. The image must appear and disappear as one image. The image may not appear
to flash, undulate, pulse or portray explosions, fireworks, flashes of light, or blinking or chasing
lights, or appear to move toward or away from the viewer, to expand, contract, bounce, rotate,
spin, twist, scroll, travel or otherwise portray movement.
c. Illumination of the dynamic sign is limited to the hours of 7AM to 10PM.
2. Notice of Understanding. The operator of any dynamic sign installed per this
subsection must submit a letter to the Director that states the organization understands and
agrees to abide by the above requirements.
DISCUSSION
The goal of tonight's meeting is to continue review of the draft sign code and to provide input to
staff on any modifications that Council may want to make regarding the Draft Sign Code. After
tonight's meeting, staff will work on a final ordinance to reflect any changes desired by the
Council and will bring that back to the Committee of the Whole on August 9, 2010 for review.
At the June 28, 2010 meeting, Council indicated that they may want to hear from the public
during their next review of the Draft Sign Code. Since this is a legislative matter the Council
President can choose to allow public input during the deliberation process. While input may be
allowed, it will not be a public hearing.
RECOMMENDATION
Continue to review of the Draft Sign Code and provide input to staff on City Council
modifications. Staff will bring a draft ordinance to the Council for consideration at the August 9,
2010 Committee of the Whole meeting. After the August 9, 2010 meeting the Draft Sign Code,
at the Council's discretion, could be forward to the August 16, 2010 Regular Meeting for
adoption.
ATTACHMENTS
10 4 W \2010 InfoMemos\SignCodeAgain.doc
a. The image of the sign may not change more frequently than once every ten
A. Matrix of substantive comments, both oral and written, provided to the City
Council and staff's response to those comments, including suggested changes
where applicable.
B. Matrix comparing selected cities sign regulations to Tukwila's Draft Sign Code
and existing Sign Code.
0 rci
O
U
0
a
a
g
o
a)
o
a) 0 1_,
3 ff' a
c/) a) a)
azt c7)
H v 0
a) 0
cd 0 O a)
(77, g U 0
bf) +g Q
H 3
H
bA
O S 0
0 o o d
0 g cal O 0
0 0 0 0 4
0 .0 o
O c 0 O
0 •6
O
O
U
0
0
b
0 43
ai
cct
0
0)
t
a)
cct
a)
a)
0 0
a)
0 O
O
in
ezt
v]
by
0)
co
r Le Z4.
e U O
h h
(4) O ti
(:3 v
Z) N E
H
C/3
'74 as
i
b
o
O
c 0 T
oU bA
N
0
c D 0
bq
0 a
Q.)
O O
s
cat cc! (I) o
tO 7'11 a) o
0~°
cz
4- ba
c 0 c
co 0 ,0
rip tr)
0 t
CD
7..i M 4ai' 4
r. 0
a)
,D
a)
b o
a) 0 in a) N N o o
a
a)
p
CO
3
a
e.1 y N
0
N O 30 U N U v
TA
Y C...) ,..-Z m va NE
0
0 44-4 N r, a
an a 5 v U p' c 0 o U 4.
`mow -0 A t'U d
a) 0 o d 1 'i off' o° o C
c L d •V c v o U U .r, Y N a
p o 'd p a� ti w Q w ca 0
O 4-
C‘l 54 v r 0 r U NN cd cn 0 *d y
44-4 O cn N U y 0 aA q) "d O U N O "eh
N 1 GA N U o U •ic)
co co
o p.4 c a o m1 (a4 cd o 9 d 'c MM 0
o b 4. 5 0 a n a y o
Q,, U y U y dA v, `O N bA 1 ap d
yy ^O to N ,ct
S, ad Fd 0 U }U- U '5 'd O N U 4 p
0 U N cd ,d cd O v, 3 U p• 4 N
N H U u o o a� o U y H r
E--
c ca 15o a7 cn ice, H v' P ti
a cn 0 pp c o En
cn t)0 O o
g
0 N a o cz
d1 U Cd N E�-i .0 t/) o op O
:3
En
c o
y 0 aa) o v v O
C7 En V5 z3
as
as
cad U U ,o v3 ti =n e) z3 0
k o c� y t
w� o z O w c3 <v w
v c o O b A of Q w w
N p ti —LC)
Q N
G N cn 0* o U a
cd e-
U a
U
8
.l
U Z
10
cd cd
0
7, -d cd a3 s. t-{ v,
U v' UU N p� O c a t cd N Q N O P• 01) y N U t 0 A
bA V) H P Q cd 4) .4 O
v, cd O 0 a) O
cn
`O 0 s-. a) O a) N O� p ..O O O O cd d
a� T o o o a W p d
5 rin N w P-, a) O 0 r T p G O o P+
t 3D 4-. c3 5 6 *d 5 S' 0 'd U O O E
o N P.' a? cd rn O F+ 0 O 0 rn EC c4-.4 .d E H d o y
o
"Q ''r 4,--' +'0 O i i cd G, r O y d btu
a) O O v t./) O F c o d
a) 0 0 N 0 3 up ca .5 N I cd F 0 6 H i�
p rj, o 0p .5,, f o N N 0bD p y P.
a' cd as 3 an o p, VD
b 0 v ao U r P 5, 'm t_ m o
4 C o N cd a> u, H
w rfl
K v
r, v v
on
cd 0
v 7:3
O
ci Et
0 C1 CA
C) C
c o a
t3 v C"".'.q 1 +4 Q
e0
(I) O
=Q Q0 0
m tan bf, U.
cf) cd cd
ca
i
0
U
d
4
r! 1
a MI
ca
y3°�- �'e." t5 c4 au to
v v 6 V y N
6 a U y G d p y 6 6 O n b. o
u U P Q o'
y a 3
o o o
0
d
vA
0 0 ,o as o -c
2
a.) 0 0 (7 1
PA .1-7, i CD
cn
0 0 0
a r o
a
0 Q
c N '0
3
o
N 3
o 0 e
ten 7- W
6 p
0
3 o N
N
e
0 3 y
5
,ca �Q N
0 an o
4
0
tf) bA
0 .v O 6
b!' 'N N 0
a" cA
0 w
5
ccn a
0
0
6
o
°0
O
d o a'
cD
0
a�
cd
cn
0
W
i
0 5
v o to
b v 0 d 'd O i o
0 w v .5 aA A en Q
o vp eel H
o ^d v v.� d cd en U 0;4 A o et 0
3 -0 'r A tt bn d v c a) Nb
0 I-, c*l 1--, 0 O cn b en G O v
ed O v1 U 3 o o v v 5 cS
ea
O d v 5 8
0 d N U r+
e 0 s- U 0 H aA t v b PI v v
ea eda.)00o-f 0
eel 2 00 en
v 4) <4. cd cd S p U N O c d 4) O N 0+ L
v cd v en r O c d 3+ ^d w ca 0 O 4-+
•O d N O O U O b v v N 0 d 3 O
crt O! t Cr '5 E 5 N v 0' N v- Y 0) v 4 O 0 ca v
p., a) m O O V w H N F++ Z V O 4-0 04
y O c v v a� O O U v e r a 0 ed
p
g 00 o 0
r/� v RI v o
O G X) o e4-,
cd v N
0
N cn 0 5
o
up b
O 0 0 0 cn d b
4- v 0
a `L$ 0 en
v E N m
cd
td C d 'KJ v _o v
U v ca 5 0 a) 0
0 Q 0.. OD 0 A+ N U N 0. 0 v�
v O O bA cd b r
v �O ea FA C/
'b ed N O S N v
O 0 4 O O ed '-4 0 t"
td 0 0 O
bl) /-4 f cd a c::, O 'b y bA c
en H bD v Q O C� el'3 0 v O v d 0
o v mot' Z't0'd E 5 U y
Q v, O N v s" O 'd v a) v
p4 0 w 0 w O 2 U U al
4-+ 0 N O 3 0 N 0 O H
v v d o o f Q
v1 o o O 0" H.fl 0
U
tt
r
O 4
0
CeI a)
wa
cf) c o
an
z Q
14$
N M
Ili
0
a)
c d
a)
0
a
0
0 p., o 'd H 0
cf) of) cd 4) v) a) Q rn
4-, 0 a)
U
N
s` O
cd
b
c
est .0
ct
A a
5 o
V
o
V
0
0
e cH
a,
44 ea o
0
Z cJs
w
C/Z
0
aa
1 Q�1
y N O U
ad an d
p 5+ a
474 ,od
o
i
6 .3
5 5 0)
tom' 0, cn
cal O o a 0
PA 0
O cri R -a o o
,ts s, U an o o u 4
3 U 0 A t 0
d N r' V H
A t,
H
o� o 0 0
US o 0
Q+ H
0 40 u
Cd o (o
cd It
O
cd E 0 0 +-4
.Eb O .O w m 0
m a) N c n d O v, can n �cd
o ai 3 U �-0
a o V) -g o ,5 o
o 0 0 U ca C
a) a) U ap N
tn
,,c C: O t
0 i' U v O H
4 5
w v
0 J al (1
5
N
a
0
a.)
c d
0
V- 5
cat tb
w 0.
0 0
M
w
ca
a) -e, 4- O
0 d o a
N 0 T N
u z O y
n ,t O N
d
m E-{ fi n, d O
0 0 O .r 0 O
0 -d N a) r,
4-+ O 0 O O O bA aA N Y -fl CA
%4 il an -Ti d
u) o 0, 7
cd s- N N C 7 +r v�
p v im'+ a 0_, 0
4] Vi) O N N 4-, .--4 O i- -N
4iU p1p
0 o
a) 0 pp d o N 0 bA N V1 W O
cn ;d c
cn 0)
0 a) a 4-1
-0., O 0
N
a)
U 1 -U o
Vl Cr) p. 0
eet
A 5
A5
0
5
O
s4 P. o
o d
0) (5)
u 0
41
o
v U
4
0
0
0'
a
d
a)
a)
O 'a O ff y" a)
0 c o 0
—RI 4
0
U. Z o
0)
0 N
c-
d
0
z
a)
4-4
0
0)
a)
U
0
O
O
s c�
O
N
GA
bA
0)
0
cn
N
cn
4 15
cd
0
V
a a
i
U
cad a o U cd cd o cd cl, '�'m a 3 a a.a.),_, 3 CA ao 0
m A cd i o 0 d a4 cad 0 a VI
N U o H d w a a a cd 0 a cd 0 t13
rn s+ a P '1)0 o d a) 3 a c7.-c:1 0 cd cc) c V p cd 0 Q a
bib CA EA 0 0
cd 0
y 4 +5 -d o L S
G a p r c a d o T-. a o v' a H
cd i- a✓ S a cd U -d O s- a U
a) o 0 0 a V -d an a o a o
.9 a) cd a ai r 0 U 'N a 5 5.., 'd r+ 'd 4 p y hll
U o ca o
n 3 0 u, ai 0 n o a' T ,°o) •8 U 5 o `d 4s ci)
co cd to
0 44
a ,--4
too
CI
Cd
71) 04
U
A
0 r i
cd 0
0 V)
a
0
0 c2) 1 4 0
cd t!1 d
a) 'in
5 NE a21 3,
U 4 a '4 U
.n a w
H
3 o 0 0
a ca OA CO d
U ccd N o 5 p cd
co cd0
rd 0
6 a u a 6° a i'
5 cd 0 a ca a
o 0 y w d
rd
o 0 c
0 co c 3
Ort O O c Q I '0 H
O c,.., 'd w cd O a
04 i t �aA1 i CGS Cr Y c d o o v CA +j a a 5 0 4a{
i '1) o 0- 0� ril cd
6-, P. ,,p
M
0
ccs
bo
0
0
0
En 0
0 0
3
0 o O
o cn
0
40 `0 0 E
0 0 r y o
d 0 0 s-
rn cd r
-d
o o. a)
C! 1
0
4 A
tj
-A' O e
TA 4�
O
O as
O O
0
-0
bA
cd
n
G
N
_bil 0
a) O O
4-{ O N
4-
0 .0
40 w 0
Q0
d)
4—i
0
0
4
0
O
0
0
cd
0
n.
O
U
a
8 cd 0
U
O
-4.) '-m ..t:C' 4 1
o U a) 0.
5
a c/10a_
p 4-
U -0
on W 0 0 1 y
A C P. "i. O Cl
O N cd C
U C
O O O g r cd 2.
V Pte c N
O
6 p 'p
m cn u 1I p U a)
w y w 0 bp u, -4- N .D
tll
U 0 u' 0 A 3 d N O O t',+ 4- t '7.' .4'
O c Y 0 -d 0 2 v bn O
CP u.
U, Q i, r a a) Q. t o
N 0 '5..., 0 P t O a) O ,:f:',,--
om�++ cO r,
u, N fl P 3 0 C7 C° 0 a.' N 0
i o
�s'O a o o `bnbn�'�'u, 3 o
6 q S v pA 1
6) Q 0 f N. cd cd U O
O c� cad P' c? -7,., p ,-,S ,0 O 'er p
O O CI CA d C+ 6 cd c cd
II; 0 U 6 v, to G d 0 v, ca 5 P, P, o 2 to P
'd '0 A 'd 0 .4 o a c d 0 o
c3 C t t v
v 0 O bn t)13 v bn Q+ cil VI
VI
T O a u, 'II c d H Y rt
rn 5 cd U ca
H bn
pn O 1 cd
cd 1) b r n
b g v cll Q 44 r n
N p t bA OA
cdn
O Tw O 4 VI. to
rd
P cd 4 O c%1
O cn 4-i bA N
N v o a d -v P+
C. R 0 0 0 c
te a. o a3 0
o u U a) 0 U ,cd a) O
o
0 i o 0 Y 4) 4
4 y 0 cd 3 %4
VI (i)
LA
c
0
o
r W
U 40 V
tu
too
tort
0b
4.
O
Cd
VI
V
Ed l?A d
ccd o
p
O Zja
0 01
04 0 R
v�y
w cct
tn
1
0
m
cd cd
o ID")
.3
vs U
O 0)
bA
Q N
.N
o
U
EDO 0)
cd
o 0
3
1 0
cd O
E4-4 0 0
rJ]
cd
En
0
bp
4-+
O
b4
C/3
o
0
0 a cd
o 0
N
O
o
r H O
U o
o
a
o 8 cd
d 0
O
Vi
b4H as
Pei
O
4ipO
cn
ca
o v a? O
E4-4 En O O O tt
o N 3 0
U U b4 9 4.:4, Q
t
o cd 0 s-+ Q
E.4-4 0 0 Cl 0)
cd O b4 cd Y
0 ',:r4 v1 r+ fd
0) O U o
'd ..?:,---,-4 y Q p
N O o U Q b
m O N o 0 a
v) N 0 1 .y
0 0_, 0
U v s 4'
U 0 r+ N
En ^o 0 O
cd c Q 0 N o
O U v
U E U
H
M
cd
5
c
0
C/)
M
fl
0TH
o cd
u t
O
cd
a
o
V
i,
w
T
A 0 h
ca
U n
U N a N
0 H a) N Q" an
W 0 O U G
0 a N t
0 E 0 a 8
3 5
0 w
v)n w Z° w. v, a� •o a��
o 0 a7 fin O N O 0 O 4-, 0 v 0
0 0 0
^O 0 v' a) c ca a 44 ai H O O $i,,, O 0 i s 00 U p y 1,54-4 O trUC ,76 0
T
VI r.) a te'`+ 0' O c/ O a o ti p 440 G p 4 U U O
a� G O U 0 G cd n 6N 0 p O cd r c,. S
a O N p Y 0 `d P. ai
U
O N N O
a n...6. nd cd a 4.. 1•, G
y O G p a a 0 O 0
u vi <7;), GP Y ow •W N
S a .0 3 a, vi 3 a,, 0 o v
o o n n y .V-' o Z
0 G N o r an an G
0 Ul C1+ n c a d a) U G 0 N 0 c N
N c 0 to y 'c• U N 'd O
y U
y�.
cat O N CS' ca -d to
5 y' Q G
p
O (J CJ]
.0 y N N
5 4 a tr) N
O a 0
p c G
e a v Z
o
4.. r
a) cti
0
N p O r i N c� Q'
y N 5 N 0 O d a)
3 N 0 Q 0 �t O R
0 .0 li O O O y N N 0
o a w v
'0 s C y 'o
dd 9 d
a)w b o y Li)
o .a o f
ra 'A
5 0d 0 u'
yv' 3 won 0 o 0 o ,o m ss 4) o o 7' o da o d cd
i 11
1 y 0 S y v 9, O N N O
04 4 0 0
0° a
W 'Y+ O 'v 4) y O bU S cn c o
y s c� c0 N N N y N O 0
w N v W 0 d
A w d O \''t t O d W 4 1
1 D yi Y 0 •7 0.
o ca o o 0 0 0 cd p
afi a d mo t° I
VI
co 0
15 Cd
I 'd Q I L A W N v e w A o a 4
t0) N .p 0 O O U O I
:0 5 y t 0 r A p N P. iU a
c d a 0 c m O y 0 d y V '7
N °yam{ a' 4 A 0 6
v
V o e r n o 7 w 0
w
O
3 v' o
E,,-, 7
N N i
V c' E 0. \."4I
V)
0
0
d\
4)
J
N
O
4)
N
o N d+ A w
O
45' 0
4-4 1:4 y
0 y�
3 4)
y y 4)
4)
N
0
O
0)
c3 co 0
0
a) N 0)
U
O
o
0
O
O
om r1
trj
rip
G d Y-4
o
a) i
0)
-c o 5 o
0 0 a) U t.., S'
N al 0 G A 0 U
014 a ›.',.'i 0 U N o 0
m
0 O
O .0 w
A
a3
O cN
R
o
E 0 a
O rd 5
ti
Y Ln 0)
a) H
t4 .0 N O N
O 11 p
a N
.T:3 to y p .0 U w
r•■ 9 A t4 A Q O %).(1 ,n
o> 0/:)..,4 C`7 1
0 N N 7 N U N al
F-, .0 tl N aJ 44 g ,'G-+ cd
0 ).--4 Nw
7
bA a) O
V-. y w
Y
to 0 O r
O Y 0
U moo o vi
a> O c t+-t A
at .c7i R w b N
b N O O c., U CO
Cr
Q
a>
N
0
0) a)
U 3
y o
C
t-' an
y C
v
s.
W
4
O
O J a7
O N O ed O,
cd -d a iii t C y 0 G 0
w, p q-d O O 4 yy 4+ bA il
0 Mt 0
y G a o ca b a 6ci l o -o
a.) 06 o a) ro ca m m
a trl 7 0
ca
ca
0
CAS NUMBER: 10-082
10 -082
AGENDA ITEM TITLE Adoption of the 2009 State Building Code and related amendments.
CATEGORY Discusszon Motion Resolution
COUNCIL AGENDA SYNOPSIS
Initials
Meetzn, Date Prepared by 1 Mayo evzew 1 Counczl revzew 1
07/12/10 JP 1 I kg 1
07/19/10 JP I I
ITEM INFORMATION
1 ORIGINAL AGENDA DATE: JULY 12, 2010
Ordinance Bid Award Public Hearing Other
Mtg Date 07/12/10 Mtg Date Mtg Date Mtg Date 07/19/10 Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Adzn Svcs DCD Finance 1 1 Fire Legal P&R Police El PW
ITEM NO.
SPONSOR'S Staff is seeking Council approval of a draft ordinance adopting the 2009 State Building
SUMMARY Code with local amendments. The City will need to adopt the 2009 State Building Code to
assure that the minimum requirements and standards in the City of Tukwila will not be
less than those contained in the State Building Code.
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 06/28/2010
RECOMMENDATIONS:
SPONSOR /ADMIN Department of Community Development
COMMIT LEE Unanimous Approval; Forward to Committee of the Whole
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$0 $0 $0
Fund Source: N/A
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
07/12/10 I
1
1 MTG. DATE I ATTACHMENTS
07/12/10 I Informational Memorandum dated 06/28/2010
Ordinance in draft form
i23
124
TO:
City of Tukwila
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Community Affairs and Parks Committee
FROM: Jack Pace, Department of Community Development, Director
DATE: June 28, 2010
SUBJECT: Adoption of the 2009 State Building Codes
ISSUE
The State Building Code Council has adopted the 2009 State Building Code and amendments
thereto, effective throughout the state on July 1, 2010. The State Building Codes, local
amendments thereto and the administrative rules of the codes must be adopted by ordinance to
be enforceable within the Tukwila jurisdiction. Shall the council approve an ordinance to adopt
the 2009 State Building Code with local amendments?
BACKGROUND
Jim Haggerton, Mayor
The State Building Code Council has adopted the model codes published by the International
Code Council, Inc., the International Association of Plumbing and Mechanical Officials, and the
National Fire Protection Association. The following are the seven model codes that are included
in the State Building Code and are administered by Building Division:
International Building Code.
International Residential Code.
International Mechanical Code.
International Property Maintenance Code.
Uniform Plumbing Code
Washington State Energy Code
Washington Cities Electrical Code
There is a national code change process of the model codes that takes place during a three
year cycle. Once this process is completed and the new code editions are published, the State
Building Code Council commences their State wide process of public hearings.
Subsequent to this process the State Building Code Council publishes their adopted rules and
amendments to the model codes. The lengthy process leaves the state wide effective date one
year later than the code edition. Due to the many changes that have occurred in the model
codes, the State Building Code Council was further delayed in publishing their amendments to
the State Building Code. This affected the time frame for presenting an adopting ordinance to
the City council and therefore the effective date in Tukwila is now extended beyond the State
effective date of July 1, 2010.
125
INFORMATIONAL MEMO
Page 2
DISCUSSION
The International Building Code and the International Residential Building Codes were subject
to more changes than in the previous two code cycles. Changes of note are the provisions for
high rise buildings, a new occupancy class of ambulatory health care facilities, and a most
controversial requirement for mandatory fire sprinkler systems in all new one and two family
dwellings and townhouses.
The State Building Code Council placed the requirement for residential fire sprinklers in an
appendix to the International Residential Code. By this action each jurisdiction will determine if
mandatory residential fire sprinkler systems are appropriate for their jurisdictions.
Implementation of this requirement will require specific adoption of this appendix. Further study
is warranted and therefore adoption of this requirement is not included in this ordinance.
The adopting ordinance proposes two local amendments to the State Building Code.
1. An amendment to the permit fee schedule. Damage from flooding or other natural disasters
creates the problem of getting damage repair under way as soon as possible. This is imperative
for any recovery process to be successful. However, the work must be done under proper
building permits and with the required inspections.
As part of our recovery planning we have established an over the counter repair permit for one
and two family dwellings. A nominal fee of $20.00 is proposed. In this manner the permit is
made valid by payment of a permit fee, and the state mandated $4.50 (per building permit) is
included in this collection.
2. The amended language and additions to IBC Section 105.2 (Work exempt from permits)
includes three items: The first clarifies when work in Tukwila and State right -of- ways will
require building permits, see draft ordinance Section 16.04.20, 1, c, (I). The second clarifies the
definition of an accessory structure and supplements the conditions of this definition, see draft
ordinance Section 16.04.20, 1,c, (II), and the third exempts decks that are not greater than 30
inches above grade plane. The third is actually an addition to the list of construction exempt
from a building permit
The language to adopt the 2009 Edition of the model codes and the two amendments described
herein are the summary of changes to TMC Chapter 16.04. Due to an emergency order
requested by the Governor, the new State Energy Code will not be adopted herein.
Implementation of the new energy code has been postponed immediately until October 29,
2010 and perhaps an additional postponement until 2011. The current 2006 edition of the
energy code will continue to be enforced until such time as the State Building Code Council
decides on an implementation date for the new energy code. The strike outs in the fee
schedules are updates to the schedules that show increases that were previously approved by
council.
RECOMMENDATION
The Committee is being asked to approve the adopting ordinance with local amendments and
forward it to the July 12, 2010 Committee of the Whole meeting for consideration and
subsequent July 19, 2010 regular meeting.
ATTACHMENTS
Ordinance in draft form
126 W 12010 InfoMemos12009 State Bldg Code Adopt-info memo II.doc
W. Word Processing 2009 Building Electrical Code
BB:mh 7/7/2010
DRAFT
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NOS. 2121
(PART), 2157 (PART), 2171 (PART) AND 2249 (PART) AS CODIFIED
AT TUKWILA MUNICIPAL CODE CHAPTER 16.04, "BUILDINGS
AND CONSTRUCTION," ADOPTING THE 2009 STATE BUILDING
CODE; THE WASHINGTON CITIES ELECTRICAL CODE; AND
PROVIDING FOR THE ISSUANCE OF PERMITS AND COLLECTION
OF FEES; PROVIDING FOR SEVERABILITY; AND ESTABLISHING
AN EFFECTIVE DATE.
WHEREAS, the Codes enumerated in Chapter 19.27.031 RCW shall become
effective in all counties and cities of Washington State on July 1, 2010, and all
jurisdictions in the state shall enforce the State Building Code, as adopted by the State
Building Code Council, effective July 1, 2010; and
WHEREAS, the International Building Code, International Residential Code,
International Mechanical Code, and Uniform Plumbing Code are adopted by the State
Building Code Council as parts of the State Building Code; and
WHEREAS, the City Council desires to adopt the 2009 edition of the International
Property Maintenance Code; and
WHEREAS, the City Council desires to adopt the Washington Cities Electrical
Code including administration provisions and amendments therein to the National
Electrical Code; and
WHEREAS, the City Council desires to establish the City of Tukwila Hearing
Examiner as the authority to hear and rule on appeals relative to the application and
interpretation of the State Building Code and the Washington Cities Electrical Code;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. TMC 16.04.010 Amended. TMC Section 16.040 010, "Purpose of
Chapter," is hereby amended to read as follows:
16.04.010 Purpose of Chapter
TMC Chapter 16.04 is enacted for the purpose of adopting rules and regulations
governing the conditions and maintenance of all property, buildings and structures by
providing standards for supplied utilities, facilities and other physical things and
conditions essential to ensure that structures are safe, sanitary and fit for occupation
and use; governing the condemnation of buildings and structures unfit for human
occupancy, and use and abatement of such structures in Tukwila, regulating the
issuance of permits and the collection of fees; to help ensure the protection of the health,
safety and the general welfare of the public; and governing the creation, construction,
enlargement, conversion, alteration, repair, occupancy, use, height, court area,
sanitation, ventilation and maintenance of all buildings and structures within this
iurisdiction.
Section 2. TMC 16.04.020 Amended. TMC Section 16.040 020, "Codes Adopted," is
hereby amended to read as follows:
Page 1 of 8
127
128
1. The International Building Code, 2806 2009 Edition, and referenced standards
hereto as published by the International Code Council, Inc., and as adopted by the State
of Washington in Chapter 51 -50 WAC. The following Appendices, standards and
amendments are specifically adopted.
a. Appendix E, Supplementary Accessibility Requirements.
b ICC /ANSI A117.1- 2003, American National Standard.
c. Work exempt from a building permit. Section 105.2 of the International
Building Code, 2006 2009 Edition, is amended to include provisions regarding the
following work exempt from a building permit:
(1) Work performed by the City of Tukwila and located in City of Tukwila
right -of -way; work performed by Washington State Department of Transportation and
located in WSDOT right -of -way to include public utility towers and poles, mechanical
equipment not specifically regulated in this code, hydraulic flood control structures
including levees: provided that any structure or building constructed in a municipal or
state right -of -way and intended to be used as any occupancy classification of the State
Building Code is not exempt from the provisions of this code or the related oennit
requirements.
16.04.020 Codes Adopted
Effective July 1, 2010, the following codes are adopted by reference as if fully set
forth.
(2) One -story detached accessory structures used as tool and storage
sheds, playhouses and similar uses, provided the floor area does not exceed 120 square
feet, and such structure is outside of and entirely separated, as prescribed by
from any existing building on the premises.
(3) Decks not more than 30 inches above adiacent grade.
2. The International Residential Code, 2006 2009 Edition as amended by the
State, provided that Chapters 11 and 25 through 43 of this code are not adopted.
Appendix G. "Swimming Pools, Spas and Hot tubs," is included in the adoption of the
International Residential Code.
3. The Uniform Plumbing Code and the Uniform Plumbing Code Standards, 2006
2009 Edition, published by the International Association of Plumbing and Mechanical
Officials, and as amended by the State of Washington, provided that Chapters 12 and 15
of this code are not adopted. Provided further that those requirements of the Uniform
Plumbing Code relating to venting and combustion air of fuel fired appliances as found
in Chapter 5 and those portions of the code addressing building sewers are not
adopted. Appendixes A, B, D, E and I of the Uniform Plumbing Code are hereby
adopted by reference. Provided further that the following amendments to the Uniform
Plumbing Code are adopted:
a. All reference to and definition of "authority having jurisdiction" is deemed
to refer to and shall mean the "Building Official."
b Water Supply and Distribution. Cross connection control for premises
isolation related to the City's public water system shall be in accordance with the City of
Tukwila Public Works Department's "Development Guidelines and Design and
Construction Standards." Cross connection control for premises isolation related to
water purveyors outside of the City of Tukwila water system shall be in accordance
with that water purveyor's policies and standards.
c. Sanitary Drainage. Side sewer, private sewer main extensions beyond a
point defined in the plumbing code as the building drain, and required grease
interceptors all within the City's sewer districts shall be in accordance with the City of
Tukwila Public Works Department's "Development Guidelines and Design and
Construction Standards," in coniunction with the Uniform Plumbing Code
W Word Processing; 2009 Building Electrical Code
BB:n,.h 7/7/2010
Page 2 of 8
requirements. "Sanitary drainage, side sewers, private sewer main extensions beyond
the building drain and grease interceptors outside the Tukwila sewer district shall be in
compliance with that purveyor's policies and standards.
4. The International Mechanical Code 2006 2009, as published by the
International Code Council and as amended by the State of Washington, Chapter 51 -52
WAC.
5 The International Fuel Gas Code, 2006 2009 Edition, as published by the
International Code Council, Inc. and as amended and adopted by the State of
Washington.
6. The Washington Cities Electrical Code. Article 80.3 of the National Electrical
Code: The 2008 Edition of the National Electrical Code (NFPA 70), including Annex A,
B and C, the 2007 Edition of Standard for the Installation of Stationary Pumps for Fire
Protection (NFPA 20- 2007), the 2005 Edition of Standard for Emergency and Standby
Power Systems (NFPA 110 2005), Commercial Building Telecommunications Cabling
Standard (ANSI /TIA /EIA 568 -B.1 June 2002 including Annex 1 through 5), Commercial
Building Standard for Telecommunications Pathway and Spaces (ANSI /TIA /EIA 569
A-7 December 2001 including Annex 1 through 4), Commercial Building Grounding
and Bonding Requirements for Telecommunications (ANSI /TIA /EIA 607 -A- 2002); and
the Residential Telecommunications Cable Standard (ANSI /TIA /EIA 570 -B -2004 are
adopted and shall be applicable within the City of Tukwila as amended, added to and
excepted in the Washington Cities Electrical Code.
A. Article 85.11 sections (A), (Bl and (C) is amended entirely and replaced as
follows: The authority having iurisdiction within the City of Tukwila shall mean the
Building Official. and shall include the Chief Electrical Inspector or other individuals or
jurisdictions when designated by the Building Official. All references to "Code Official"
shall mean the Building Official or designee.
B. Appeals. All references to Board of appeals is amended as follows: Any
person, firm or corporation may register an appeal of a decision or determination of the
Building Official provided that such appeal is made in writing within 14 calendar days
after such person firm or corporation shall have been notified of the Building Official's
decision. Any person, firm or corporation shall be permitted to appeal a decision of the
Building Official to the Tukwila Hearing Examiner when it is claimed that any one of
the following conditions exists.
1. The true intent of the code or ordinance has been incorrectly
interpreted.
2. The provisions of the code or ordinance do not fully apply
3. The decision is unreasonable or arbitrary as it applies to alternatives or
new materials.
4. Appeals procedures shall be in accordance with TMC Chapter
18.116.030.
C. Violations. Whenever the authority having jurisdiction determines that
there are violations of this code, a written notice shall be issued to confirm such
findings. Any Notice Order issued pursuant to this code shall be served upon the
owner, operator, occupant or other person responsible for the condition or violation,
either by personal service or mail, or by delivering the same to and leaving it with some
person of responsibility upon the premises. For unattended or abandoned locations, a
copy of such Notice Order shall be posted on the premises in a conspicuous place, at
or near the entrance to such premises, and the Notice Order shall be mailed by
registered or certified mail, with return receipt requested, to the last known address of
the owner, occupant or both.
W. Word Processing; 2009 Building Electrical Code
BB:mh 7/7/2010
Page 3 of 8
129
130
D Penalties. Any person, firm or corporation who shall willfully violate or
fails to comply with a Notice Order is liable for the monetary penalties prescribed in
TMC 8 45 100(A2)
7. The International Property Maintenance Code, 2006 2009 Edition, as published
by the International Code Council, including a new Section 404.8 as follows: Dwelling
as defined in Section 202 and pursuant to Section 404.7 shall be provided with a kitchen
sink, cooking appliances and refrigeration facilities, each having a clear working space
of not less than 30 inches (762mm) in front Light and ventilation conforming to this
code shall be provided.
Section 3. TMC 16.04.030 Amended. TMC Section 16.04.030 "Filing Copies of State
Building Codes" is hereby amended to read as follows:
16.04.030 Filing Copies of State Building Codes.
The City Clerk shall maintain on file not less than one copy of the codes referred to
in TMC 16.04.020 and the codes shall be open to public inspection.
Section 4. TMC 16.04.250 Amended. TMC 16.040.250 "Schedule of Permit Fees," is
hereby amended to read as follows:
16.04.250 SCHEDULE OF PERMIT FEES
A. Building Permit Fees
Total Valuation
$1 to $500
C. Other Fees.
W. Word Processing; 2009 Building Electrical Code
BB:mh 7/7/2010
Building Permit Fees
$63.00 2
$501 to $2,000 $63.00 29 for the first $500, plus $4.20 3,78 for each additional
$100, or fraction thereof, to and including $2,000
$2,001 to $25,000 $126.00 85,7-0 for the first $2,000, plus $19.10 1-736 for each
additional $1,000, or fraction thereof, to and including
$25,000
$25,001 to $50,000 $584.65181.98 for the first $25,000, plus $14.90 12,8-3 for each
additional $1,000, or fraction thereof, to and including
$50,000
$50,001 to $100,000 $957.40 797.93 for the first $50,000, plus $10.30 8,68 for each
additional $1,000, or fraction thereof, to and including
$100,000
$100,001 to $500,000 $1,471.901,231.98 for the first $100,000, plus $8.25 6.91 for
each additional $1,000, or fraction thereof, to and including
$500,000
$500,001 to $1,000,000 $4,777.30 1,007.98 for the first $500,000, plus $6.90 589 for
each additional $1,000, or fraction thereof, to and including
$1,000,000
$1,000,001 and up $8,221.30 6,952.98 for the first $1,000,000, plus $4.55 3.90 for
each additional $1,000, or fraction thereof
B. Plan Review Fee. A plan review fee shall be paid at the time of submitting
plans and specifications for review. The plan review fee shall be 65% of the permit fee
as set forth in the permit fee schedule. The plan review fee specified herein is a separate
fee from the permit fee and is in addition to the permit fee.
1. Inspections outside normal business hours: $94.50 9000 per hour (Three
hour minimum charge).
2. Re- inspection fee: $63.00 60-00 per hour assessed upon call for third
inspection of same correction notice.
Page 4 of 8
3 Inspections for which no fee is specifically indicated. $63.00 60:00 -per hour
(one -half hour minimum charge)
4. Additional plan review necessary due to additions or revisions to the
plans: $63.00 $60:00 per hour (one -half hour minimum charge)
5 Work commencing before permit issuance shall be subject to an
investigation fee of 100% of the usual permit fee.
6. Renewal of expired permits: The fee shall be one -half the amount
required for a new permit for such work, provided that suspension or abandonment has
not exceeded one year. Renewals after expiration of more than one year shall require a
full permit fee and plan review fee where applicable.
D Mechanical permit fees.
Valuation of
Work (Total
Contract Amount)
$250 or less
$251 to $500
$501 to $1,000
$1,001 to $5,000
$5,001 to $50,000
$50,001 to $250,000
$250,001 to $1,000,000
$1,000,001 and up
2. Other fees.
W Word Processing; 2009 Building Electrical Code
BB:mh 7/7/2010
Mechanical Permit Fee
$33.60 For issuance of each permit (base fee)
$63.00 -60,00
$63.00 60.00for first $250, plus $7.65 673 for each $100 or
fraction thereof, to and including $500
$82.15 71.87 for the first $500, plus $8.50 7,49 for each $100 or
fraction thereof, to and including $1,000
$124.70 112.32 for the first $1,000, plus $9.40 for each
$1,000 or fraction thereof, to and including $5,000
$162.25 115.56 for the first $5,000, plus $9.80 9,22 for each
$1,000 or fraction thereof, to and including $50,000
$604.05 111.90 for the first $50,000, plus $8.20 74-9 for each
$1,000 or fraction thereof, to and including $250,000
$2,242.05 1,352.90 for the first $250,000, plus $7.20 6:39 for
each $1,000 or fraction thereof, to and including $1,000,000
$7,636.45 1,792.50 for the first $1,000,000, plus $6.55 5.68 for
each $1,000 or fraction thereof
1.. When a plan or other data is reauirecl to be submitted with a permit
application, a plan review fee shall be paid at the time of submitting plans and
specifications for review. The Ulan review fee shall be 25% of the calculated permit fee
and shall be in addition to the permit fee. Additional plan review required by changes,
additions or revisions to plans or to plans for which an initial review has been
completed: $63.00 $60:00 per hour (one -half hour minimum).
(a) Work commencing before permit issuance shall be subiect to an
investigation fee of 100% of the usual permit fee.
b Inspections outside of normal business hours: $94.50 90-09 per hour
with a three -hour minimum charge.
c. Re- inspection fee assessed. $63.00 $60-00 per hour
E. Plumbing Permit Fees.
1 Permit Issuance Issuance of each permit (base fee): $33.60?00
2. Unit Fee Schedule (in addition to items 1 2 above)
1 For one plumbing fixture (a fixture is a sink, toilet, bathtub, etc.)
1 For each additional fixture
1 For each building sewer and each trailer park sewer
$63.00 60:00
1 $13.65 13,00 1
1 $24.15 23.00 1
Page 5 of 8
131
132
1 Rain water system per drain (inside building)
1 For each water heater and /or vent
For each industrial waste pretreatment interceptor, including its trap
and vent, except for kitchen type grease interceptors
1 For each grease trap (connected to not more than four fixtures)
For each grease interceptor for commercial kitchens (less than 750
gallon capacity)
For each repair or alteration of water piping and/ or water treating
equipment, each occurrence
1 For each repair or alteration of drainage or vent piping, each fixture
For each medical gas piping system serving one to five inlets /outlets
for a specific gas
1 For each additional medical gas inlets /outlets
For each lawn sprinkler system on any one meter, including (1 -5)
ATMOS vacuum breakers, therefore over five each ATMOS vacuum
breaker
For atmospheric -type vacuum breakers not included in lawn sprinkler
backflow protection: 1 to 5, $13.65, over 5: $13.65 for first 5 plus $3 15
for each additional
For each backflow protective device other than atmospheric type
vacuum breakers: 2 -inch diameter and smaller $28.35; over 2 -inch
diameter $30.45
4. Other Inspections Fees (Plumbing):
Inspection outside of normal business hours (minimum 3 hours)
Re- inspection fee
Inspections for which no fee is specifically indicated
Plumbing permit issued after work commences for which a permit is
required.
Emergency conditions
Non- emergency conditions: Work commencing before permit
issuance shall be subject to an investigation fee equal to 100% of the
permit fee.
Plan review fee: The fee for review shall be 25% of the total plumbing
permit fee. The plan review fee is a separate fee from the permit fee,
and is applicable when plans are required in order to show compliance
with the code.
F. Fuel gas permit fees.
1. Permit Issuance:
For issuing each permit (base fee): ($0 if permit is in conjunction with a
plumbing permit for an appliance with both plumbing and gas
connection.)
For issuing each supplemental permit
2. Unit Fee Schedule (in addition to items in F 1. above)
For each gas piping system of one to five outlets
For each additional gas piping system outlet, per outlet
3 Other Inspections and Fees (fuel gas piping)
$13.65 13.00
$13.65 X00
$13.65 4-3,00
$17.0516-25
$28.35 2-748
$13.65 1-388
$13.651200 1
$79.80 76400
$15.7515:00
$28.35
$94.50
X00 /hour
$63.00
60:00 /hour
$63.00
60:00 /hour
•No fee.
•Fee is 100% of
permit fee.
Fee is 25% of
permit fee
Wi Word Processing; 2009 Building Electrical Code
BB:nili 7/7/2010 Page 6 of 8
$33.60 3-2:00
1 516.55 15.75 1
1 $63.00 60490 1
1 $13.651308 1
1 Inspections outside of normal business hours
Re- inspection fee
Inspection for which no fee is specifically indicated
Additional plan review required by changes, additions, or revisions to
approved plans (minimum charge one -half hour)
Work commencing before permit issuance shall be subject to an
investigation fee equal to 100% of the permit fee
Plan review fee: The fee for review shall be 25% of the total fuel gas
piping permit fee. The plan review fee is a separate fee from the permit
fee and is required when plans are required in order to show
compliance with the code.
G. Electrical permit fee schedule.
1. NEW SINGLE FAMILY DWELLINGS
1 New single family dwellings (including a garage)
1 Garages, pools, spas and outbuildings
1 Low voltage systems
2. SINGLE FAMILY REMODEL AND SERVICE CHANGES
Service change or alteration no added /altered circuits 1 $81.90 75
Service change $81.90 78,00 with added /altered circuits, plus $11.55 $81.90 75
14,00 for each added circuit (maximum hermit fee $152.85 115.60)
Circuits added /altered without service change (includes up to 5 $54.60 52
circuits)
Circuits $54.60 52 added/ altered without service change (more than 5 $54.60 50
circuits) $7.65 740, for each added circuit (maximum permit fee $98.70
94)
1 Meter /mast repair 1 $68.25 65
1 Low voltage systems 1 $59.85 55
3 MULTI- FAMILY AND COMMERCIAL (including low voltage)
Valuation of
Work (Total
Contract Amount)
$250 or less
$251 $1000
$1,001 $5,000
$5,001 $50,000
$50,001 $250,000
$250,001 $1,000,000
Over $1,000,000
$63.00 60:00
4. Plan review fee. In addition to the permit fee, when plan review is required, a
plan review fee must be paid at the time of permit application equal to 25% of the
calculated permit fee.
W Word Processing; 2009 Building Electrical Code
BBanh 7/7/2010
PERMIT FEE
$94.50
90:00 /hour
$63.00
60.00 /hour
$63.00
60,00 /hour
$63.00
60,00 /hour
100% of the
permit fee
$152.851:40 1
$81.9075 1
$59.85 55
$63.00 60,00 for the first $250 plus $4.20.1.00 for each $100 or
fraction thereof, to and including $1,000
$94.50 90O00 for the first $1,000 plus $21.00 20 for each $1,000 or
fraction thereof, to and including $5,000.
$178.501:70.00 for the first $5,000 plus $17.20 16.40 for each $1,000
or fraction thereof, to and including $50,000
$953.40 908.00 for the first $50,000 plus $12.60 12,00 for each
$1,000 or fraction thereof, to and including $250,000
$3,473.40 3308 for the first $250,000 plus $8.90 8-50 for each
$1,000 or fraction thereof, to and including $1,000,000.
$10,167.15 93 plus 0.5% of cost over $1,000,000.00
Page7of8
133
134
5. MISCELLANEOUS ELECTRICAL PERMIT FEES.
Temporary service (residential) $63.00 604/0
Temporary service generators $78.7575
Manufactured /mobile home parks and RV park sites. each service and $84.0080
feeder. (excluding garage or outbuildings?
Carnivals:
Base fee $78.50755
Each concession fee $10.5010
Each ride and generator truck $10.50
Inspections or plan review not specified elsewhere (one half hour $63.00
minimum). 60Q0 /hour
Adult family home inspection (paid at the time of scheduling the $63.00
inspection)
Disaster recovery emeraencv repair permit (residential structures only) 1 $20.00
6. Work covered without inspection or work not ready at the time of
inspection may be charged a re- inspection fee at the hourly rate listed above.
7. Work without a permit. Any person who commences electrical work
before obtaining the necessary permits shall be subject to an investigation fee. The
investigation fee shall be equal to the established permit fee as set forth in the electrical
fee schedule. This fee, which shall constitute an investigation fee, shall be imposed and
collected in all cases, whether or not a permit is subsequently issued.
H. Fee Refunds. The Building Official may refund any permit fee paid by the
original permit applicant that was erroneously paid or collected. The Building Official
may also authorize the refund of not more than 80% of the permit fee when no work
has been done under a permit issued in accordance with the code. Where a plan review
fee has been collected, no refund will be authorized once it has been determined that
the application is complete and the plan review process has commenced. Refund of any
permit fee paid shall be requested by the original permittee in writing and not later than
180 days after the date of fee payment.
Section 5. 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 6. 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 thereof 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; 2009 auilding Electrical Code
BB:mh 7/7/2010
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published.
Effective Date:
Ordinance Number:
Page 8 of 8
City of Tukwila
Communit Affairs and Parks Committee
COMMUNITY AFFAIRS AND PARKS COMMITTEE
Meeting Minutes
June 28, 2010 5:00 p.m.; Conference Room #3
PRESENT
Councilmembers: Joe Duffie, Chair; Joan Hernandez and Verna Seal
Staff: Dave Johnson, Kirstin May, Ahmed Abdirizak (Parks Recreation intern), Jack Pace, Nora
Gierloff, Brandon Miles, Bob Benedicto, Evie Boykan and Kimberly Matej
CALL TO ORDER: Committee Chair Duffie called the meeting to order at 4:59 p.m.
L PRESENTATIONS No presentations.
II. BUSINESS AGENDA
A. Amendment to Doak Homes. Inc. Settlement Aereement
Staff is seeking Council approval to authorize the Mayor to amend the terms of an existing settlement
agreement with Doak Homes, Inc.
In May 2008, the City Council approved a settlement with Doak Homes regarding the development of
certain residential properties in the City. Shortly after the settlement was reached, the housing market began
to deteriorate. In response to the housing economy, Doak has requested a 36 -month extension of the
agreement which, most significantly, allows Doak to build homes on smaller lots.
Currently, Doak is one of the few builders actively building in Tukwila, and the four homes they have built
to date are appealing and complement the neighborhood. Therefore, staff recommends extending the
settlement agreement with the following two changes:
1) Permit fees will not be waived, as per the original settlement; and
2) The Permit process will not be expedited, as per the original settlement.
UNANIMOUS APPROVAL. FORWARD TO JULY 12 COW FOR DISCUSSION.
B. Ordinance: 2009 State Buildine Code
Staff is seeking Council approval of a draft ordinance adopting the 2009 State Building Code with local
amendments. The City will need to adopt the 2009 State Building Code in order to comply with the
requirement that minimum performance standards and objectives in the City of Tukwila not be less than
those contained in the State Building Code.
Changes to the State Building Code are made in three year cycles, with the last update being in 2006. The
2009 process seemed to be especially arduous, and the State was late in forwarding the completed
amendments, which are usually adopted by local jurisdictions by July 1. In addition to administrative
changes, the proposed draft ordinance includes two local amendments relative to Tukwila:
Permit fee schedule and process related to damage from flooding and /or natural
disasters; and
Language that clarifies and further defines work exempt/not exempt from permits.
There are two additional items that will not be adopted at this time. Due to the complexity of these issues,
the items will be worked on jointly by Fire and Community Development Departments and will come to the
Finance Safety Committee under separate cover once completed. Those items are:
1) Mandatory fire sprinkler systems; and
2) Provisions for high -rise buildings; and
3) Provisions for five -story (usually four -story maximum), Type VA construction buildings
135
c
136
Community Affairs Parks Committee Minutes June 28. 2010 Paae 2
Finally, the new State Energy Code has been delayed at the request of the Governor. It is currently
postponed until October 2010, and may be extended into 2011. UNANIMOUS APPROVAL FORWARD
TO JULY 12 COW FOR DISCUSSION.
C. 2010 Parks Recreation Update Youth Teens and Foster Golf Links
As information only, staff gave two brief PowerPoint presentations on the status of ongoing Youth Teen
programs and Foster Golf Links.
Youth Teens
The mission of youth and teen programs is to promote and enhance youth and teens in the community.
Program highlights for youth include: offsite ballet and gymnastics; Early Birds (before school program);
ASAP (After School Activities Program); summer camps (Camp Tukwilly and Adventure Camp); Summer
Playground Program at Cascade View Park (free summer lunch program location); No School day camps;
Parents Night Out; and birthday parties. Special event activities include Family Fright Night (near
Halloween) and the Easter Egg Hunt and Scramble. Other programs co- sponsored with Community Schools
Collaboration are Dr. Seuss Night and Spring Break Camp. Staff noted that attendance at the Spring Break
Camp has gone down significantly since camp costs have increased.
Special event and program highlights for teens include: Teen Late Night (every Friday at Tukwila
Community Center); dodge ball tournament; Flashlight Egg Hunt; Fear Factor Friday and a texting
competition. A Teen Summer Kick -Off Festival was recently held at TCC. In addition to Teen Camp,
Tukwila has a Counselor in Training Program (CIT). Tukwila also offers Specialized Recreation in
partnership with the City of SeaTac.
Foster Golf Links
Marty O'Brien, Golf Superintendent, gave a brief background of the history of Foster Golf Links and
provided some general golf facts. He described the three -way partnership of Foster which includes a close
relationship between the Course, Pro Shop and restaurant; all three of which offer a complete package for
many patrons.
Highlights of the presentation also incorporated capitol and course improvements including but not limited
to:
Committee Member Hernandez requested a hard copy of the Youth Teen presentation as well as data for
resident and non resident use of /involvement in the recreation programs. INFORMATION ONLY.
A new clubhouse
Office space (including lunchroom, locker area and laundry)
New grass tees and greens
Computer controlled irrigation system with weather station
Major drainage and irrigation improvements
III. MISCELLANEOUS
Meeting adjourned at 5 :52 p.m.
Next meeting: Monday, June 28, 2010 5:00 p.m. Conference Room #3
Committee Chair Approval
Mir}utes by KAM.
1 CAS NUMBER: 10-083
AGENDA ITEM TITLE Seattle Southside Visitors Center (SSVS) change fund.
CATEGORY Discussion Motion Resolution Ordinance Bic Award 1 1 Public Heanng Other
Mtg Date 7/12/10 Mtg Date Mtg Date 7/19/10 Mtg Date
Fund Source.
Comments.
MTG. DATE
7/12/10
7/19/10
MTG. DATE
7/12/10
COUNCIL AGENDA SYNOPSIS
Initials
Meetznx Date Prepared by 1 Mayail-r f ew 1 Counal review
07/12/10 SH 1 (k� 1 Jld✓<
07/19/10 sh
ITEM INFORMATION
ORIGINAL AGENDA DATE: JULY 12, 2010
Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R n Police PW
SPONSOR'S The Seattle Southside Visitors' Service Center (SSVS) plans to begin selling tourism related
SUMMARY items, such as admission tickets, to the public. To realize operational efficiencies,
establishment of a new $100.00 change fund level is requested.
REVIEWED BY COW Mtg n CA &P Cmte Z F &S Cmte
in Utilities Cmte Arts Comm. Parks Comm.
DATE: 7/7/10
RECOMMENDATIONS:
SPONSOR /ADMIN. Finance
COMMInhE Unanimous Approval; Forward to Committee of the Whole
COST -MPACT/ FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED
RECORD OF COUNCIL ACTION
ATTACHMENTS
Informational Memorandum dated 6/16 /2010, with attachments
Minutes from the Finance and Safety Committee Meeting of 7/7/10
ITEM No.
Transportation Cmte
n Planning Comm.
APPROPRIATION REQUIRED
137
138
TO:
FROM: Peggy McCarthy, Deputy Finance Director
DATE: June 16, 2010
SUBJECT: Establishment of a New $100.00 Change Fund Level for the Seattle
Southside Visitor Center and Repeal of Resolution 1676.
ISSUE
To establish a new $100.00 change fund level for the Seattle Southside Visitor Center (SSVC) and for the
repeal of Resolution No. 1676.
BACKGROUND
The Seattle Southside Visitors Center plans to begin selling tourist related items such as admission tickets
to area attractions and bus passes. For operational efficiency and to best serve customers who tender cash
in payment for these items, it is the desire of SSVC staff to establish a new change fund level in the
amount of $100.00.
DISCUSSION
The attached proposed draft resolutions will establish a new change fund level for the Seattle Southside
Visitor Center as follows:
Once the City Council approves the establishment of a new change fund level for the Seattle Southside
Visitor Center through the repeal of Resolutions No. 1676, a claims disbursement check will be issued
through Accounts Payable to release the funds.
RECOMMENDATION
ATTACHMENTS
City of Tukwila
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance and Safety Committee
Hotel /Motel Tax Special Revenue Fund $100.00
Please forward this item to the July 12, 2010 Committee of the Whole meeting for consideration and
forward to the July 19, 2010 Regular Meeting for Council approval of final resolution.
Draft copy of resolution to repeal existing Resolution No. 1676
Copy of current Resolution No. 1676
Jim Haggerton, Mayor
139
140
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ESTABLISHING A SEATTLE
SOUTHSIDE VISITOR CENTER CHANGE FUND LEVEL;
AND REPEALING RESOLUTION NO. 1676.
WHEREAS, the Tukwila City Council previously established Change Funds and
Petty Cash Fund levels, most recently by Resolution No 1676, passed February 2, 2009;
and
WHEREAS, for the implementation of new retail operations, cashiering functions
and improved customer service, there is a need to establish a new change fund level in
the amount of $100 00 for the Seattle Southside Visitor Center;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The Change Fund levels are hereby set as follows:
Finance Department
City Clerk's Office
Seattle Southside Visitor Center
Municipal Court
Parks and Recreation
Golf Course
Section 2. The Petty Cash Fund levels are hereby set as follows:
Finance Department
Police Investigation /Tukwila
Fire Department
Parks and Recreation
Public Works Division II
Public Works Division I
Section 3. Resolution No. 1676 is hereby repealed.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof 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 Resolutions \Southside Change Fund.docx
PM:lsn 6/29/2010
DRAFT
Water Fund
General Fund
Hotel/Ivlotel Tax Fund
General Fund
General Fund
Foster Golf Course Fund
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
Dennis Robertson, Council President
Filed with the City Clerk:
Passed by the City Council.
Resolution Number
0001 100.00
0001 100 001
101 1 100 001
0001 300 00
000_1 300.00
411 I 1,200.00
(or less, as needed)
000 800 00
000 10,000.00
000 350.00
000 500.00
000 350.00
000 200 00
Page 1 of 1
141
142
Finance Department
City Clerk's Office
!Municipal Court
!Parks and Recreation
I Golf Course
APPROVED AS T RM BY
the
City of Tukwila
Washington
Resolution No. 6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ESTABLISHING A CITY CLERK'S
OFFICE CHANGE FUND LEVEL, AND REPEALING
RESOLUTION NO 1664.
WHEREAS, the Tukwila City Council previously established Change Funds and
Petty Cash Fund levels, most recently by Resolution No 1664, passed June 23, 2008, and
WHEREAS, for the implementation of a new cashiering system for operational
efficiency and improved customer service, associated with City Clerk operations, there
is a need to establish a new change fund Ievel in the amount of $100 00 for the City
Clerk's Office,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The Change Fund levels are hereby set as follows.
1 Water Fund
General Fund
I General Fund
(General Fund
Foster Golf Course Fund
Section 2, The Petty Cash Fund levels are hereby set as follows.
Finance Department
Police Investigation /Tukwila
!Fire Department
(Parks and Recreation
Public Works Div II
}Public Works Div I
I General Fund
!General Fund
General Fund
(General Fund
(General Fund
(General Fund
Section 3. Resolution No 1664 is hereby repealed.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Council Meeting thereof this day of 'Fe arc, 2009
ATTEST/ AUTHENTICATED
nP
Christy O'F1ahgty, CMC, City C erk
1'
0001 100 00
0001 100 00
0001 300 00
0001 300 00
411 I 1,200 00
(or less as needed)
000 800 00
000 10,000 00
000 350 00
000 500 001
000 350 001
000 200 001
Jan Hernandez, Council Pr7sident
Filed with the City Clerk. 0
Passed by the City Council. ,Q oq
Resolution Number. 1 V' it7
C. \Documents and Settings \All Users Desktop Kelly \MSDAPA\ Resolutions Change Fund City Cterk.doc
LJ.KSN 1/
Page 1 of 1
143
144
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
City of Tukwila
Finance and Safety Committee
July 7, 2010 5:00 p.m.; Conference Room #3 *Wednesday meeting due to holiday
PRESENT
Councilmembers: De'Sean Quinn, Chair; and Dennis Robertson (for Kathy Hougardy)
Absent: Allan Ekberg
Staff: Shawn Hunstock, Peggy McCarthy, Dave Haynes, Tami Erble Harris, Nick Olivas, Bob
Benedicto, Marty Grisham, Gail Labanara, Bob Giberson, Hillman Mitchell, Jack Pace, Steve
Lancaster and Kimberly Matej
Guests: Mary Hulvey
CALL TO ORDER: Chair Quinn called the meeting to order at 5:01 p.m.
I. PRESENTATIONS
No presentations.
II. BUSINESS AGENDA
A. Bond Ordinance for Southcenter Parkway Extension
This item was originally heard by the Finance Safety Committee on June 7, 2010. At that time,
Committee members had some clarifying questions for staff and requested the item return to Committee
for further discussion, unless grant fund processing was time sensitive.
Staff is seeking approval of an ordinance providing for the issuance of new bonds in the amount of $6
million, and authorization for the execution of a continuing disclosure agreement for such. The
information memo in the Committee agenda packet addressed prior Committee inquiries (see Committee
minutes dated June 7, 2010).
Council President Robertson expressed concern over the City's current economic situation and the cost of
items being requested in the draft bond ordinance (outside of Southcenter Parkway improvements). He
acknowledged the need for these emergency preparedness items; however, he was concerned this may not
be the best way to finance these items. Committee Chair Quinn shared his concerns with the emergency
preparedness items, which included: 1) the City's ability to pay for these items in the short-term in
comparison to the need; and 2) how the Police Department will secure matching grant funds for the
mobile command unit if the items are not included in the draft bond ordinance.
Staff answered questions and provided clarity on emergency preparedness items as outlined in the
Emergency Preparedness Capital Asset List included in the Committee agenda packet. The items are
essential to maintaining continuity of internal and external operations during and emergency. Failure of
current equipment, not replaced through the bond, could be catastrophic. After a lengthy discussion, the
two Committee Members agreed to forward this item to Council for discussion, recommending that the
draft bond ordinance be approved as is, including the purchase of the emergency preparedness items.
UNANIMOUS APPROVAL. FORWARD TO JULY 12 COW FOR DISCUSSION.
B. Resolution: Establishina a Seattle Southside Visitor Center Chanae Fund.
Staff is seeking full Council approval of a resolution that will establish a change fund in the amount of
$100.00 for Seattle Southside Visitor Center. The addition of the change fund is needed for cash
transactions related to customer purchases such as admission tickets and transportation. The change fund
will increase operational efficiency and improve customer service for the Center. This will require the
repeal of Resolution No. 1676. UNANIMOUS APPROVAL. FORWARD TO JULY 12 COW FOR
DISCUSSION.
145
146
12th (Monday)
Community
Affairs
Parks Cmte,
5 00 PM
(CR #3)
City Council
Committee of
the Whole
Mtg.,
7 PM
(Council
Chambers)
(Agenda
includes public
meeting
regarding City
budget issues)
:19t1i(Mdiida'v)
Transportation
Cmte,
5:00 PM
(CR #1)
City Council
Regular Mtg.,
7:00 PM
(Council
Chambers)
REGULAR
MEETING
TO BE
IMMEDIATELY
FOLLOWED BY
A SPECIAL
MEETING
(BUDGET WORK
SESSION)
13th (Tuesday)
D Utilities Cmtc
CANCELLED
Tukwila
International
Boulevard
Action Cmte,
7:00 PM
(Community
Center)
:20641Ni6da:0
Summer Work
Party at Codiga
Park
10:00 AM to 2:00 PM
Registration
required: E -mail
Dhira Brown at
restoration @puget
sound.org or call
206 382 -7007,
ext. 182
Finance Safety
Cmte,
5:00 PM
(CR 83)
➢Arts Commission,
5.30 PM
(Community
Center)
RESCHEDULED
FROM JULY 6TH
Upcoming Meetings Events
JULY 2010
14th (Wednesday)
:.21st{Wednesday);
Public Information
Meeting on
Residential
Rental Licensing
Inspection
Program
10:00 AM
Tukwila Community
Center
(12424 42nd Ave. S.)
Call 206 -431 -3670
to reserve a space.
Parks
Commission,
5.30 PM
(Community
Center)
Library Advisory
Beard
CANCELLED
15th (Thursday)
Crime Hot
Spots Task
Force Mtg.,
10 AM
(CR #5)
Tukwila
Historical
Society,
7:00 PM
(old Tukwila
Library at 14475
59th Ave. S.)
22nd {Thursday)=
Planning
Commission,
6.30 PM
(Council
Chambers)
16th (Friday)
Peanut Butter
and Jam
Concert Series
4 13 41.
FREE family fun!
12:00 Noon
(Tukwila
Community Center
by the Spray Park)
This week:
Jim Valley
July 16 (cont.)
17th (Saturday)
Work Party
Duwamish
Riverbend Hill
10:00 AM to 1:00 PM
Additional
information available
at www.cascadeland.
org under "Events."
For information or to
register please contact
volunteer@
cascadelandorg or
206 -905 -6931 Space
is limited, so please let
us know ifyou plan 10
come!
July 17 (cont.)
1'
C.A.S.T.T. performances
(Community Actors'
Summer Theatre in Tukwila)
July 16 and 17 at 7:00 PM
Foster Performing Arts
Center
Admission is FREE,
but canned food will be collected at
the door for the Tukwila Food Pantry
For more info call 206 -768 -2822.
23rd'. 24th'. (Saturday)
Peanut Butter
and Jam
Concert Series
FREE family fun!
12:00 Noon
(Tukwila
Community Center
by the Spray Park)
This week:
Casper Babypants
Arts Commission: 1st Tues., 5.30 PM, Tukwila Community Center Contact Stephanie Gardner at 206 767 -2342.
City Council Committee of Whole (C.O.W.) Meeting: 2nd 4th Mon., 7 PM, Council Chambers at City Hall.
City Council Regular Meeting: 1st 3rd Mon., 7:00 PM, Council Chambers at City Hall.
Community Affairs Parks Committee: 2nd 4th Mon., 5 PM, Conf. Room #3 Agenda item for 7/12/10 meeting. (A) Sensitive
Areas Ordinance update.
Crime Hot Spots Task Force: 3rd Thurs., 10 AM, Conf. Room #5 Contact Phi Huynh at 206 -433 -7175
Finance Safety Committee: 1st 3rd Tues., 5:00 PM, Conf. Room #3
Library Advisory Board: 3rd Wed., 7:00 PM, Foster Library Contact Stephanie Gardner at 206 767 2342.
Parks Commission: 3rd Wed., 5.30 PM, Senior Game Room at Community Center Contact Stephanie Gardner at 206- 767 2342.
Planning Commission/Board of Architectural Review: 4th Thurs., except 2nd Thursday m Nov Dec., 6.30 PM,
Council Chambers at City Hall. Contact Wynetta Bivens at 206 -431 -3670.
Transportation Committee: 1st 3rd Mon., 5:00 PM, Conf. Room #1
➢Tukwila Historical Society: 3rd Thurs., 7:00 PM (meeting location varies). Contact Pat Brodin at 206 433 1860.
>Tukwila Int'l. Blvd. Action Cmte: 2nd Tues., 7:00 PM, Tukwila Community Center Contact Chief Dave Haynes a1206 -433 -1812.
Utilities Committee: 2nd 4th Tues., 5'00 PM, Conf. Room #1 7/13/10 meeting has been cancelled.
147
148
Tentative Agenda Schedule
MONTH MEETING 1- MEETING 2
'REGULAR C.O.W.
July
5tI
Independence Day
(observed)
(City offices closed)
August
30th
Fifth Monday of the
month —no Council
meeting scheduled
6 (Tuesday)
2 9
Special Presentation:
Global to Local
initiative (Adam
Taylor, Project Mgr.)
New Business:
Briefing by adminis-
tration regarding
implementation of
program and service
reductions
12
See agenda packet
cover sheet for this
week's agenda
(July 12, 2010
Committee of the Whole
Meeting)
MEETING 3
REGULAR
19
Special Presentations:
Presentation by the
Girl Scouts of a
donation to the Police
Department K -9 unit
Employer support
of the Guard and
Reserve presentation to
Tukwila Police
Department and City
Unfinished Business:
Ordinance adopting
State Building Code
Amendment to Doak
settlement agreement
Sign Code ordinance
Bond resolution for
Southcenter Pkwy.
construction
Resolution establishing
a Seattle Southside
Visitors Center Change
Fund
Budget items:
Ordinance regarding
business license fee
increase
Ordinance regarding
RGRL
Ordinance regarding
utility taxes
New Business:
Adopt revenue enhance-
ments and implement
program /service reduc-
tions where possible
REGULAR MEETING TO
BE FOLLOWED BY A
BUDGET WORK SESSION
Special Issues:
Conduct second review
of Parks Recreation
proposed program and
service reductions
16
MEETING 4-
26
6:30 PM
EXECUTIVE SESSION
Special Issues:
Budget Public
presentation to
Council on status of
labor negotiations
followed by Council
discussion of next
steps, which could
include another
round of program/
service reduction
decisions in
September
23
COMMITTEE OF THE
WHOLE MEETING TO
BE FOLLOWED BY A
SPECIAL MEETING