HomeMy WebLinkAboutCAP 2011-03-14 COMPLETE AGENDA PACKET NM A h, City of Tukwila Distribution:
V. Seal C. O'Flaherty
.`J o Qs', J. Duffle S. Kerslake
y Community Affairs D. Quinn K. Mate]
O
—4 Ma or Ha A. Ekberg B. Arthur
Parks Committee Mayor Haggerton C. Parrish
S. Lancaster P. Linder
k\ 0 Verna Seal, Chair
190 O
Joe Duffle
0 De'Sean Quinn
AGENDA
MONDAY, MARCH 14, 2011
CONFERENCE Room #3, 5:00 PM
Item I Recommended Action Page
1. PRESENTATION(S)
2. BUSINESS AGENDA
a. Leasing of City Property for Digital Billboard. a. Forward to 3/28 C.O.W. Pg.1
Brandon Mi /es, Senior Planner and 4/4 Regular Mtg.
b. North Highline Annexation. b. Forward to 3/28 C.O.W. Pg.9
Jack Pace, Community Development Director and 4/4 Regular Mtg.
c. Bid Award for 34 Golf Carts. c. Forward to 3/28 C.O.W. Pg.31
Rick Still, Parks Recreation Director and 4/4 Regular Mtg.
d. Parks Recreation Annual Report. d. Information only. Pg.45
Rick Still, Parks Recreation Director
3. ANNOUNCEMENTS
4. MISCELLANEOUS
Next Scheduled Meeting: Monday, March 28, 2011
1 6. The City of Tukwila strives to accommodate those with disabilities.
Please contact the City Clerk's Office at 206 433 -1800 (tukclerk @ci.tukwila.wa.us) for assistance.
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AN CLA-
MS Cit of Tukwila
o
a 6 Jim Haggerton, Mayor
*t90 INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Community Affairs and Parks
FROM: Brandon J. Miles, Senior Planner
DATE: March 1, 2011
SUBJECT: Leasing of City Property for Construction of a Digital Billboard
ISSUE
Should the City enter into a lease agreement (Attachment A) with Clear Channel Outdoors
(CCO) for the construction and operation of a digital billboard on City owned property along
West Valley Highway?
BACKGROUND
The City currently owns a 9,400 square foot parcel located at the NE corner of West Valley
Highway and South 180 Street (See Attachment B: Aerial Photo) CCO has approached the
City about the possibility of leasing the property for the construction and operation of a digital
billboard.
In 1995, the City granted written permission for NC Power Systems to use the City property.
This agreement provides no direct income to the City. City staff has informed NC Power of the
proposed lease agreement with CCO. The agreement would allow a future tenant to use the
property provided their use does not interfere with the CCO billboard structure.
City staff has offered NC Power Systems the continued use of the City property, provided rent is
paid to the City; NC Power Systems has stated that they do not need the property and thus,
were unwilling to enter into an agreement that required the payment of rent. On March 4, 2011,
Steve Lancaster, City Administrator and Brandon Miles, Senior Planner met with Joe Huley of
NC Power to discuss the future of the City owned property. The meeting was cordial and each
party understood that the future use of the property would likely not include NC Power. City staff
committed to keeping NC Power informed on the progression of the construction of the
billboard. While the City's written permission to NC Power only requires that we grant them ten
days notice to vacate the property, staff will provide as much notice as possible to NC to
minimize any impacts to their business operations. If an agreement can be reached with NC
Power in the future, staff thinks they would be a good tenant on the property.
The basic terms of the Lease Agreement with CCO would be as follows:
1. CCO will pay the City an annual lease rate of $25,000 per year. The lease amount will
increase 7.5% every five years.
2. The term of the agreement will be 15 years. After the initial term, the City and CCO can
enter into a new agreement if parties choose.
3. The City will credit CCO $5,000 of the first year's rent for the construction of an access
point to the property. This access point will be for the exclusive use of the City and
CCO. The access point will remain even after CCO leaves the property.
4. CCO is required to obtain all other governmental approvals for the construction and
operation of the billboard structure.
1
INFORMATIONAL MEMO
Page 2
The only question being asked of the Council is regarding the leasing of City owned land. The
installation and operation of a digital billboard in this area of the City is specifically permitted
under the new Sign Code at Tukwila Municipal Code (TMC) 19.38. In this section of the new
code, the City established two billboard receiving areas, one along West Valley Highway and
one along Boeing Access Road. The purpose of the billboard receiving areas was to allow the
installation of new billboards in exchange for removing a significant number of existing
billboards in the City.
Before constructing the proposed billboard, CCO will be required to remove ten existing
billboard faces within the City, representing a significant reduction in the total number of
billboards. The removal sites are not included in the Lease Agreement because it's a specific
code requirement that CCO is required to comply with as part of their required construction
permit. The requirement to remove billboards elsewhere in the City would still be required of
CCO if they chose to install a billboard on a non -city owned property.
ANALYSIS
The subject property has an assessed value of $115,000. The proposed Lease Agreement will
generate over $400,000 in revenue to the City over the 15 year term, while at the same time
allowing the City to retain the property for any future needs, such as right of way improvements.
The lease with CCO would not restrict other possible uses of the property, provided those uses
do not constrain the operation of the proposed billboard. City staff has tried to develop a new
agreement with NC Power which would allow them to continue using the property along with
CCO and is open to further conversations.
RECOMMENDATION
The Council is being asked to authorize the Mayor to enter into a Lease Agreement and
consider this item at the March 28, 2011 Committee of the Whole meeting and subsequent
April 4, 2011 Regular Meeting.
ATTACHMENTS
A. Agreement in Final Form
B. Aerial Photo
2 W:\2011 Info Memos\Billboard Lease.doc
CLEAR CHANNEL OUTDOOR LEASE AGREEMENT
Lease
1. This Lease Agreement "Lease is dated effective as of April 1 2011, and entered into by and between CITY OF
TUKW ILA "Landlord and CLEAR CHANNEL OUTDOOR, INC., a Delaware corporation "Tenant Landlord hereby
leases to Tenant the real estate commonly known as 2140 SW 43 Street and situatedwinthe City of Tukwila, County of
King in the State of Washington, whose permanent property tax number and legaI are attached hereto and
incorporated herein by reference as Exhibit A (the "Property The Property -isa leased for the purpose of erecting,
maintaining, operating, improving, supplementing, posting (whether physically, gitalIy:or via other remotely changeable
technology), illuminating, repairing, repositioning and /or removing outdoorF advertiis ng including, without
limitation, fixture connections, electrical and broadband supply and connections, panels;xsiiggns (whether digital, static or
similar technologies), copy and any other equipment and accessories: Tenant may place thereon (collectively, the
"Structure This Lease includes all necessary rights of ingress and,egress:yTenant may IicerlSethe use of the Structure,
or any portion thereof, for any lawful purpose.
2. This Lease shall be in effect for an initial term of fifteen (1s5Lyears, cohrhencing on the datewconstruction
permits are approved by the City of Tukwila. If for any reason TerighlEis unaal to complete construction of the
Structure and /or fails to obtain the necessary governmental authorizatio'ns::to operate the Structure, Tenant may
terminate this Lease immediately upon notice to Landlord. If the structurei's "a.not built within 1 year of mutual execution
of this tease agreement then the lease shall terminate. This Lease Agreeme.n €.;shall not be construed as a building or
land use permit. Tenant is responsible for obtainin n city permits prior:,to constructing the structure. CLEAR
CHANNEL shall have the right to terminate this Lease arthesen ofrany monthly periOdAiring the initial term or any subsequent
term upon notice to Landlord served not less than thirty (30), days:proar to the end of anymon fly period.
3. Tenant shall pay Landlord rent in the amount offvventy Five Th;iEsand Dollars ($25,000.00) per year payable in
full upon commencement of the terra and each anniversarydate7 hereafterfor -the period of time commencing when tenant
has approval from governmental.entiti for the construction of the structure° Annual rent shall increase by seven and one
half percent (7.5 on the fifth ""(5 antra (10 annive of the Lease commencement.
4. This Lease shalrcontinue in full fora and effect for its n itiitial,lerm from the date construction permits are approved
by the City of Tukwila. During aRy term of this-Lease and for a period of ninety (90) days following the expiration or earlier
termination of this Lease, Landlord hereby grant$ to Tenant_aright of first refusal, acceptance of which is exercisable at
Tenant's sole discretion ztomatch the"rr%aterial terms =of a iyoffer acceptable to Landlord for the use or purchase of all or
any portion of the'P rope ?tv and /or to match the material terms of any offer acceptable to Landlord for the use of purchase
of any parceI or collection of parcels that rrieWes the Property (the "Offer"), which includes, without limitation, similar time
periods for}performance and investigation as= are:ser:orth in the Offer A copy of all relevant document(s) containing the
Offer received by Landlord shall 6 e Felivered to4Tehant (the "Offer Documents Tenant shall then have twenty (20) days
from its receptof.the Offer Documents in whiclto match the material terms of the Offer by giving notice of acceptance to
Landlord. If Teran't.rejects the Offer and the Property transfers pursuant to the terms of the Offer, Landlord shall promptly
notify Tenant of s uch transfer and provide Tenant with any relevant contact information and rental payment submission
addresses of such r ew owner of the P. roperty. Prior to transferring ownership of the Property, Landlord shall furnish the
new owner with a copy =ef his Leap
5. Tenant is and shall the owner of the Structure until Tenant no longer has any rights to use or possess the
Property whether (1) under.th'iis Lease, or any extension, renewal, or modification of this Lease; (2) by operation of law; (3)
as a holder -over tenant; or (4) as such right is otherwise held by Tenant, provided, however, that Tenant has the right to
remove the Structure at any time. Tenant must remove the structure within 30 -days of termination of this Lease or
termination of tenant's right to use or possess the property. If tenant fails to remove the structure, the Landlord may
remove the structure and seek reimbursement from the tenant for the removal and disposal of the sign and any
associated legal fees. If for any reason Tenant's Structure is removed, materially damaged or destroyed, all rent
payments shall cease for up to ninety (90) days until the Structure is rebuilt and all necessary governmental authorizations
are obtained to operate the Structure. After 90 days tenant shall pay fifty percent (50 of the scheduled rent until repairs
or replacement is completed or Tenant may terminate the Lease. If the Structure is removed for any reason, only the
above ground portions of the Structure need be removed. Tenant has the sole right to make any necessary applications
with, and obtain permits from, governmental entities for the construction, use and maintenance of the Structure. All such
3
permits and other rights to outdoor advertising on the Property shall remain the property of Tenant. Tenant shall have no
obligation to pursue any zoning matter or to continue to maintain any permit. Any such action shall be at Tenant's option.
6. Landlord and Landlord's tenants, agents, employees or other persons acting on Landlord's behalf, shall not place
or maintain any object on the Property or any neighboring real property owned or controlled by Landlord, excluding City of
Tukwila owned right of way or easements, which, in Tenant's sole opinion, would obstruct the view of the advertising copy
or display on the Structure. If Landlord fails to remove the obstruction within fifteen (15) days after notice from Tenant,
Tenant may in its sole discretion: (a) remove the obstruction at Landlord's expense; (b) cancel this Lease, remove any or
all of the Structure, and receive all pre -paid rent for any unexpired term of this Lease; or (c) reduce the rent to One
Hundred Dollars ($100.00) per year while the obstruction continues. Tenant may trim any trees and vegetation currently
on the Property and on any neighboring property owned or controlled by the Landlorda often as Tenant in its sole
discretion deems appropriate to prevent obstructions. Without limiting the foregoing, Landlord 'shall not permit the Property
or any neighboring property owned or controlled by Landlord to be used for off-pre advertising.
7. If in Tenant's sole opinion: (a) the view of the Structure's advertis co becomes entirely or partially
obstructed, (b) electrical service is unavailable; (c) the Property cannot safely_be used fo:rtFe erection or maintenance of
the Structure for any reason; (d) the Property becomes unsightly; (e) there..is a diversion, reduction or change in directional
flow of traffic from the street or streets currently adjacent to or leading` =to of'past the PropertyA:the Structure' value for
advertising purposes is diminished; (g) Tenant is unable to obtain.oRnaintain any necessary pert] for the erection, use
and /or maintenance of the Structure; or (h) the Structure's use is prevented or restricted by law, Ter ant is required by
any governmental entity to reduce the number of billboards op.erated it in the city, county or state in File:h the Structure
are located; then Tenant may immediately at its option either: (i) reduce rent in direct proportion to the Ioss suffered; or (ii)
cancel this Lease pursuant to paragraph 2 and receive all pre -paid rentfor any:unexpired term of this Lease. In addition, if
Tenant is prevented from illuminating its signs by law, or other cause beyondfTenant's control, the rent shall be reduced by
one -third for such period of non illumination. In the event that rent is reducedaas outlined in this paragraph landlord and
tenant shall first use best efforts to resolve the issu "'e =which has caused the reift;.reduction. In the event that a mutually
agreeable solution can not be reached in 30 days th may terminate --the='L:ease after giving Tenant at least 90
days notice.
8. (a) If the Structure or the Property, or any part thereof, is :condemned by,proper authorities or taken without the
exercise of eminent domain, whether permanently or temporarily; (b) if any Fig19r of -way from which the Structure is visible
is relocated; (c) if there is a diversion;:Rreduction or changeinrdirectional floWbf traffic from the street or streets currently
adjacent to or leading to or past4the Propedy; (d) if visibility to:the Structure impaired; (e) if the value or utilization of the
Structure is reduced; (f) oriFe Structure s i e is prevented or. otherwise restricted, then Tenant shall have the right to
relocate the Structure on `Larrd.lIord's remaining property or to terminate this Lease upon not less than thirty (30) days'
notice and to receive all pre -paid =rent for argy unexpired term offhis Lease. Tenant shall be entitled to all compensation
and other remedies provided by IaTuinclirdlrrgA without JimitatiOi just compensation for the taking of the Structure and
Tenant's leasehold interest in this Lease,, limitation on:the use or maintenance of the Structure, loss of goodwill, and /or
relocation assistance =r Landlord shaFas "sert no rights ?i such interests. If condemnation proceedings are initiated,
Landlord shall use its besthefforts to include 4Tenant as a party thereto. No right of termination set forth anywhere in this
Lease maybe exercised prior- toithe sale to.any,entity with the power of eminent domain or by or for the benefit of any
entity with the power of eminent domain.
9. Landlordj- epresents that it°s the owner (or owner's authorized agent) of the Property and has the authority to
enter into this L shall provide a readily accessible access point to the Property for Tenant to enter and exit
the Property for installation and maintenance of the Structure. Access will be granted either from the east through the
neighboring cabinet shop property di Landlord will grant permission for Tenant to gain access over the curb and sidewalk
on the south end of the yperty `i the event that a ramp needs to be constructed for safe truck access to the Property
Tenant shall construct sucha =ramp at its own expense. The cost associated with constructing the ramp shall be
reimbursed by Landlord via =a rent credit in the amount of the cost of the ramp not to exceed five thousand dollars,
($5,000).
10. If the Property is currently encumbered by a deed of trust or mortgage, ground lease or other similar
encumbrance, Landlord shall deliver to Tenant on or before the commencement date hereof a non disturbance agreement
in a form reasonably acceptable to Tenant.
11. If (a) Tenant has not been informed of the current address of Landlord or its authorized agent, or (b) two or more
of the monthly payments sent by Tenant are not deposited by Landlord within ninety (90) days after the last such payment
is sent by Tenant, then no further rent shall be payable hereunder for the period commencing with the due date of the first
such payment not deposited and continuing until Landlord (i) gives Tenant notice of its business address or that of its
4
authorized agent or (ii) deposits all previous payments. In either case, Tenant's rent obligations shall be reinstated
retroactively as if neither event described in (a) or (b) of this section had occurred.
12. Tenant shall indemnify and hold Landlord harmless from all injuries to the Property or third persons caused by
Tenant, Tenant's employees, agents, licensees and contractors. Landlord shall indemnify and hold Tenant harmless from
all injuries to Structure or third persons caused by Landlord, Landlord's employees, agents, licensees and contractors.
13. This Lease is binding upon the heirs, assigns and successors of both Landlord and Tenant. Landlord agrees not
to assign this Lease to any competitor of Tenant without Tenant's prior written permission. Tenant shall have the absolute
right to assign or sublet the structure. Landlord shall have the right to use the property and lease remaining portions of the
property provided those leases do not impact Tenants use of the property or Tenants.:about to maintain the Structure.
Landlord agrees not to lease any portions of the property to a competitor of Tenant.::F w- -H;.
14. Any notice to any party under this Lease shall be in writing sent by certified, °or registered mail, and shall be
effective on the earlier of (a) the date when delivered and receipted for by aperson "at =the address specified within this
Lease, or (b) the date which is three (3) days after mailing (postage prepaid) by certified"or ce.gistered mail, return receipt
requested, to such address; provided, that in either case notices shall be.deliv_ered to sail:ti h,er address as shall have
been specified in writing by such party to all parties hereto prior to the being delivered,,
15. This Lease shall be governed exclusively by the provis7.ons hereof and by the laws of'thestate which the
Property is located, as the same may from time to time exist.witfidEl wregard to of laws provisto`ns Any action or
proceeding seeking to enforce any provision of, or based on anynght-arising .o.uEof, this Lease may fie brought against
any of the parties only in the courts within the county in which the:;P_topeT:ty is located, or, if it has or can acquire
jurisdiction, in the United States District Court for the applicable district located in the applicable county where the Property
is situated, and each of the parties consents to the jurisdiction of such courts;(and of the appropriate appellate courts) in
any such action or proceeding and waives any objec"fion to venue laid therein'..l „suit is brought or an attorney is retained
by any party to this Lease because the other part' breached this Lease,'the;prevailing party shall be entitled to
reimbursement for reasonable attorneys' fees and alf; relatedEeosts and expenses
16. Neither Landlord nor Tenant shall be bound by any terms; :con:ditiops. or oral representations that are not set forth
in this Lease. This Lease represents the entire agreement of Tenant and='L-andford with respect to the Structure and the
Property and supercedes any previotasr agreement. Land:Ior-d hereby grai7f°s Tenant all rights necessary to record a
memorandum of this Lease without Landaord's signature, including a Iimite °d power of attorney for such purpose.
TENANT: LANDLORD:
CLEAR CHANNELO INCA., 4TY OF TUKWILA
B By:
Its: Jim Haggerton, Mayor
Branch Address: Printed Name of Landlord:
Address:
Tel No.
Tel No.
Tax ID No.
ATTEST /AUTLIENtICAI =EIS APPROVED AS TO FORM
Christy O'Flaherty, CMC, City Clerk City Attorney
Date approved by City Council
5
city owned property attachment b
aerial map of digital billboard site
Exhibit A
Permanent Property Tax Number: 362304-9037
Legal Description: POR OF NW 1/4 BEG 30 FT N 1275.75 FT W FROM NE CORNER OF
HENRY ADAMS DONATION CLAIM TH N 120 FT TH W 98 FT TH S 57 FT TH W 72 FT TO
ELY MGN OF WEST VALLEY HWY TH SLY ALG SAID ELY MGN TAP 30 FT N OF PLW N
LINE OF HENRY ADAMS DONATION CLAIM TH E TO POB LESS POR FOR STATE HWY
2.7
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L City of Tuk Tukwila
S'rq 1 Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
To: Mayor Haggerton
Community Affairs Parks Committee
From: Jack Pace, Community Development Director p
Date: March 9, 2011
RE: Resolution to Commence Negotiations with King County for the North
Highline Annexation Area
ISSUE
To initiate the annexation of Tukwila's Potential Annexation Area (PAA) in North Highline using
the Interlocal Agreement method, Tukwila City Council must adopt a resolution commencing
negotiations with King County.
BACKGROUND
Tukwila designated the North Highline area as a potential annexation area (PAA) in the City's
Comprehensive Plan in 1995. Preliminary studies indicate that the additional revenue generated
by property and utility taxes may exceed the costs associated with annexation.
The City of Seattle has also designated a PAA that includes a much larger area of
unincorporated North Highline that overlaps with Tukwila's PAA (see Exhibit A PAA map).
Seattle has initiated a negotiation process with the surrounding jurisdictions and King County to
resolve overlap issues prior to initiating annexation. Seattle's Regional Development and
Sustainability Committee (Council subcommittee) will make a preliminary recommendation on
whether to move forward with a November ballot measure for annexation on March 18, 2011.
There are a number of methods of annexation including election, petition or Interlocal
Agreement method. The Tukwila City Attorney is recommending using an Interlocal Agreement
process to annex the PAA. To move forward with annexation under this method, the Tukwila
City Council needs to adopt a resolution pursuant to RCW 35A.14.460(1) commencing
negotiations with King County (see Exhibit B draft resolution).
A summary of issues regarding land use, potential costs /revenues, effect of annexation on
services, and the PAA overlap between Tukwila and Seattle is provided below.
LAND USE
e Area is approximately 135 acres in size and zoned Industrial by King County.
9 24 parcels $91,297,600 in total assessed value
m Largest property owner is Seattle City Light (28.5 acres), consisting of a substation and
vacant, undevelopable property containing the Hamm Creek Restoration project.
Remaining uses are primarily light industrial, with some office retail.
e Latest census shows 41 residents, including 22 households in 47 units, most likely living
on boats at the Duwamish Yacht Club.
Surrounding area zoning. Property across the Duwamish River in Tukwila is zoned
MIC /H. To the north, Seattle zoning is Single Family with Commercial and Industrial
along the Duwamish, and to the west of W. Marginal Way S., King County zoning is
Industrial and Regional Business with some higher density single family residential. 9
INFORMATIONAL MEMO
Page 2
SUMMARY OF POTENTIAL COSTS /ISSUES FOR TUKWILA (See details in Exhibit C Potential Costs
Revenues)
Response times to this area by Tukwila Police and Fire Departments are anticipated to
be longer than preferred standard.
Public Works estimates road maintenance catch basin cleaning costs at $22,400 /year.
SUMMARY OF POTENTIAL NEW REVENUE FOR TUKWILA (See details in Exhibit C Potential Costs
Revenues. Also see Table A)
An estimated $454,431± /year in new revenue could be generated by utility taxes, storm
drainage fees stormwater utility taxes, sales tax, business license fees, RGRL fees,
and property taxes.
EFFECT OF ANNEXATION ON SERVICES FOR BUSINESSES RESIDENTS IF ANNEXED TO TUKWILA
(Exhibit C Potential Costs Revenues, Tables B -D)
Levy Rates will be lower in the annexed portion of Tukwila than in King County, primarily
due to no road or fire levies in Tukwila ($9.98 v. $10.96, based on 2011 levy rates).
Utility Services
o Sewer water providers /rates will remain the same.
o Storm drainage rates will decrease by approximately 49% for most developed
commercial sites.
o Utility taxes ranging from 6 -10% will be levied on providers.
Government Services
o Schools, libraries, animal control and bus service providers will not change.
o Other services, such as permitting, fire police, road maintenance, and court
services will be provided by the City of Tukwila.
PAA OVERLAP ISSUES
e City of Seattle's PAA, Area Y, is a 3.55 square -mile area that includes White Center and
North Highline. Area Y overlaps with Tukwila's much smaller PAA. See Exhibit A PAA
Map.
Seattle has been considering annexation of Area Y, and recently prepared a detailed
annexation report evaluating the costs and revenues associated with the area. The
report identifies a significant financial shortfall if Area Y is annexed due to insufficient
resources to meet existing and future demands for services required by annexation. At
this time, Seattle Mayor McGinn's recommendation is to not move forward on
annexation.
On March 18, 2011, the Seattle City Council's Regional Development and Sustainability
subcommittee is scheduled to deliberate on whether to recommend moving forward with
a November ballot measure on annexation. They must notify the Boundary Review
Board of this decision by April 1 in order to proceed. (Seattle anticipates using the
Election Method of annexation.)
e King County Countywide Planning Policy LU -32 encourages using a negotiation process
to resolve PAA overlaps in the North Highline area, prior to filing Notice of Intent to
annex with King County Boundary Review Board. This process is outlined in Exhibit D.
On February 25, 2011 Seattle initiated this process by notifying Tukwila of their intent to
annex and requesting a meeting or formal mediation to discuss PAA boundary
alternatives. Tukwila has responded and expressed interest in participating in the
1 0 W: \2011 Info Memos \NorthHighlineAnnex.docPage 2 of 4
INFORMATIONAL MEMO
Page 3
negotiation process. Exhibit F includes the letter from Seattle and Tukwila's response
letter.
Per King County Countywide Planning Policy LU -32, absent a negotiated settlement to
the overlap within 60 days of receipt of the notice, a city may file a Notice of Intent to
Annex with the King County Boundary Review Board for territory within its designated
portion of a PAA overlap.
e As of this date, no negotiation meeting date has been set, although King County is
proposing using a Dispute Resolution Program and external mediator, similar to the
process used in the Burien /Seattle PAA overlap dispute.
e City of Burien's annexation of the southern portion of the North Highline area became
effective April, 2010. Burien will consider annexing the remaining N. Highline area when
their annexation agreement with Seattle /King County expires, if Seattle has chosen not
to move forward with annexation.
ANNEXATION PROCESS
See attached Exhibit D for the process associated with LU -32 and attached Exhibit E for the
Interlocal Agreement Method of Annexation (RCW 35A.14.470).
CONCLUSIONS
A preliminary fiscal analysis of annexation of Tukwila's PAA shows that revenues appear
to outweigh costs.
e Per King County Countywide Planning Polices, negotiations to resolve overlap issues in
the North Highline area will take place between Tukwila, Seattle, King County and the
North Highline Fire Department, and must be completed by April 25, 2011. It is not clear
what the outcome of this process will be, or how the Interlocal Agreement and overlap
negotiation process will work together.
It is not clear yet whether Seattle will be interested in annexation, given insufficient
resources needed to serve the area. A Council Subcommittee will deliberate on whether
to recommend proceeding with a November ballot measure on annexation on March 18.
NEXT STEPS
1. City Staff will participate in the upcoming negotiation process with Seattle and King
County to resolve boundary issues, as set forth by King County Planning Policy LU -32.
2. At the same time, City Council should adopt a resolution commencing negotiations with
King County, as required under the Interlocal Agreement method of annexation. This
does not commit the City to annexation, but initiates the required process per RCW
35A.14.470.
3. Once Tukwila City Council makes a decision to move forward, staff will prepare a more
detailed cost/benefit analysis of annexation, and concurrently move forward with the
Interlocal Agreement annexation process.
RECOMMENDATION
The Council is being asked to consider the attached resolution to commence annexation
negotiations with King County, and forward the item to the March 28, 2011 Committee of the
Whole meeting and to the April 4, 2011 Regular meeting for adoption.
W: \2011 Info Memos \NorthHighlineAnnex.docPage 3 of 4 1 1
INFORMATIONAL MEMO
Page 4
ATTACHMENTS
Exhibit A Potential Annexation Areas North Highline
Exhibit B Draft Resolution stating interest in commencing negotiations for an
Interlocal Agreement with King County to annex a certain unincorporated
island of territory known as the "North Highline Potential Annexation Area" in
Tukwila's comprehensive plan.
Exhibit C Potential Cost Revenue Details
Table A. Tax/Fee comparison between King County Tukwila
Table B. 2010 Levies: King County Taxing Districts
Table C. How will annexation affect utility service /fees?
Table D. How will annexation affect government services?
Exhibit D Annexation Process set forth by King County Countywide Planning Policy LU -32
Exhibit E RCW 35A.14.470 Interlocal Method of Annexation
Exhibit F- Letter dated February 23, 2011, from Seattle to Tukwila, requesting
meeting /mediation to resolve PAA issues; and Tukwila's response letter dated March 4,
2011.
12 N: \2011 Info Memos \NorthHighlineAnnex.docPage 4 of 4
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blank
Exhibit B
DRAFT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, STATING INTEREST IN COMMENCING
NEGOTIATIONS FOR AN INTERLOCAL AGREEMENT WITH KING
COUNTY TO ANNEX A CERTAIN UNINCORPORATED ISLAND OF
TERRITORY KNOWN AS THE "NORTH HIGHLINE POTENTIAL
ANNEXATION AREA" IN TUKWILA'S COMPREHENSIVE PLAN.
WHEREAS, the Washington State Growth Management Act and King County
Countywide Planning Policies anticipate all unincorporated areas within a City's urban
growth area boundaries will eventually be annexed; and
WHEREAS, in 1995 Tukwila adopted Ordinance No. 1757, which adopted a
Comprehensive Land Use Plan and Map for the City of Tukwila that identified
approximately 135 acres within the unincorporated North Highline area as a potential
annexation area (PAA) for the City; and
WHEREAS, the City of Seattle has designated a PAA that includes all of the
unincorporated North Highline area, and which overlaps with Tukwila's PAA; and
WHEREAS, in 2010 the City of Seattle adopted Resolution 31198 stating their
interest in holding a November 2011 election in their PAA, and outlining a work
program, deliverables, and timeline to help the Mayor and the City Council determine
whether Seattle should pursue annexation of this area at this time; and
WHEREAS, per King County Countywide Planning Policy LU -32, and prior to
adopting a "Notice of Intent to Annex" resolution, a city must notify neighboring
jurisdictions of their intent; and
WHEREAS, on February 25, 2011 Tukwila received notice from the City of Seattle of
their intent to annex and request for a meeting or formal mediation to discuss non
overlapping boundary alternatives; and
WHEREAS, on March 4, 2011 Tukwila sent a response to the City of Seattle
requesting participation in such a discussion; and
W:\Word Processing \Resolutions \No Highline PAA— Interest in negotiations.doc
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15
WHEREAS, per King County Countywide Planning Policy LU -32, absent a
negotiated settlement to the overlap within 60 days of receipt of the notice, a city may
file a Notice of Intent to Annex with the King County Boundary Review Board for territory
within its designated portion of a PAA overlap; and
WHEREAS, the outcome of the negotiation process with the City of Seattle is not yet
known; and
WHEREAS, RCW 35A.14.460 provides for the annexation of territory when at least
60 percent of the boundaries of the territory proposed for annexation are contiguous to
the annexing city or town or one or more cities or towns, and Tukwila's North Highline
PAA satisfies these conditions; and
WHEREAS, the City of Tukwila is willing to annex the North Highline PAA and
desires to take the necessary steps required by RCW 35A.13.460 to initiate the
annexation process now by adopting a resolution pursuant to RCW 35A.14.460(1)
commencing negotiations for an Interlocal Agreement with King County;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
The City of Tukwila hereby resolves to "commence negotiations" for an Interlocal
Agreement with King County for annexation of the North Highline PAA, as identified in
the City's Comprehensive Land Use Plan and depicted on the map which is attached as
Exhibit A and incorporated herein by reference.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of 2011.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk Allan Ekberg, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Shelley M. Kerslake, City Attorney
Exhibit A: Map of Potential Annexation Areas —North Highline
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16
Exhibit C
Potential Costs Revenue Details
1. Potential Costs/Issues for Tukwila
Public Works
Road maintenance costs (1/2 mile public streets) $6,400 /year
Cleaning catch basins $15,960 /year
King Co. Transportation Needs Report for this area shows only South Park Bridge
demolition replacement.
Annexation area includes lh of the Hwy 99/Marginal Wy Des Moines
Memorial Dr interchange does not make sense to split responsibility in half.
O Unsure of what level of cost to the City would be associated with Hamm Creek
maintenance.
Fire
Anticipate long response times for the PAA area (10 -12 minutes v. 5 minutes
currently provided by N. Highline Fire District. 5 minute estimate for N Highline
District represents travel time only).
Seattle does not provide mutual aid would need to rely on Fire District 2 or
N. Highline Fire District.
Fire needs to deteuuine how many buildings are sprinkled and deteiiiiine fire
flow/hydrant availability.
Police
Anticipate long response times no staff assigned to north end of Tukwila.
Difficult to obtain crime statistics from King Co Sheriff. Marina could be a
significant generator of calls.
Parks
No issues /costs anticipated.
Other
Annexation costs incurred by Tukwila would include staff time for negotiating
agreements with King County and other jurisdictions /agencies, attending public
hearings, and preparing reports.
2. Potential New Revenue for Tukwila (see Table A)
Estimated Taxes or Fees
6% utility tax on telephone, gas, electricity, cable solid waste providers. 10%
utility tax on stormwater, water sewer. Need more detailed study to determine
revenue.
9 $75,039 per year in Storm Drainage fees stormwater utility tax
Sales Tax City will receive 0.84 of revenue generated by sales tax within the
area. For example, based on taxable sales in 2009, the City received $120,120.
$900+ per year in Business License fees
17
Revenue Generating Regulatory License fee (RGRL) on full time employees.
Need to more detailed information on number of full time employees to determine
revenue.
Approximately $258,372 in property taxes ($2.83/$1000 AV in 2011).
Estimated yearly revenue: $454,431+ /year
18
Table A. Tax /Fee Comparison Between King County Tukwila
Est mateRo s
Potential Notes
King Co. If Tukwila Annexed s 4.
r Revenue for
Tu
Tax or Fee I I I 3 n xg 11
Utility Tax: Telephone 6% 1
Utility Tax Gas 6% W:A }�r
No `able to" If Seattle City Light
determine service, city imposes a
we, don4t'know franchise fee, but does
Utility Tax: Electricity u s age r e r not collect a utility tax.
Cable franchise fee 5% 6%
Utility Tax: Solid Waste 6% k Y
F
Utility Tax: Water 10% no
Utility Tax: Sewer
10% no
r represents 10% of total
o,,4 l stormwater utility fees
10% $7504 /,year x collected ($75039.39/yr).
Utility Tax: stormwater
Surface Water Utility Rates Per acre charge Per acre charge Y -r Th amount reflects the
based on amount based on amount of a total stormwater fees
of developed developed e p r `y collected minus the 10%
3 i 4 for stormwater utility tax.
(impervious) (impervious) surface. N jiii
surface. Ranges Ranges from $101.80 $67,535/year a
from $111.00 to to $850.50 per acre
$1,737.74 per (commercial use) 4
acre. (commercial T
4 ,P.1 Y R d
use) �,o r r f
r Tukwila will receive .84%
x $12 0, 120
9.50% 9.50% asedon 2009 taxable (.084) of revenue
Sales Tax `-sale) y generated by sales tax
Sales tax on food **Nora 'to
beverages (restaurants) 10% 10 det errnhin e
-q T is a ver
only required for v. Y
g (0-10) s conservative estimate
Business license regulated $100 0 -10 Lt�,k: based on 9 known
businesses g•�
f businesses with an
v unknown of
$900+ /y r employees. There are
$150 (11 -20) r ,z4 e, also 2 -3 large business
7 s parks containing multiple
1 $300 (21 -50) Z businesses which are not
,1r
t included in this figure
$400 (51 -100) 9�� 4 9
1 $600 (101 i
$0.028646 per hr :7— rr. Businesses with less
worked for a full time .�'c than $12k average
Revenue Generating employee annual gross receipts
Businesses with less u r r exempted. Accurate
Regulatory License fee I ,unk P
(RGRL) 1 than $12k average a r number of full time
annual gross receipts -.';',4--n;0 1 employees is not known
exempted) 4 A- a 4 at this time
Property Tax (per $1,000 2.83/$1000 AV RR i:- based on total AV of
AV) 10.96 total levy (City Levy portion of 2$258,372 $91,297,600
$9.98 total levy) E T
'Total Potential Revenue aminag titiM WARMU GIA05§4 431 ear
19
Table B. 2011 Levies: King CO Taxing Districts
Unincorporated If Tukwila Annexed
Kind County* Notes
Lower than the $12.68 applied to Tukw
Total levy 10.96 9.98 because the area is served by Seattle schoo
district
State/County/Port Districts 3.84 3.84
Road levy 2.19 0no road levy in Tukwila
School Levy 2.34 2.34 Seattle Public Schooi District, |evydiotricb¥1U
Fire Levy 1.60 0 assumes served by Tukwila Fire Dept
Library 0�5G O�50assunnao Tukwila Library levy applies
EMS Levy 0.30 0.30
Flood Levy 0.11 0.11
Ferry Levy 0.004 0.004
City levy 2.83
j* for King CO tax districts 3015.3U18&3O3U
20
Table C. How will Annexation Affect Utility Service /Fees?
(2010 Fee rates)
Service Served Now By... If annexed to Now If annexed to Tukwila Higher or
Tukwila Lower
than
KCo?
h.W
Soltdaste (Commercral', Allied Waste $253.91 268.21
servicetfor 6cubic yd �A c Management
container /once aweek)4
Storm drainage 90% King County Tukwila 438.78 $212.62
impervious 3.03 acre
site
Sewer (metro sewage Val Vue sewer No change $40.90 1st 750 same same
disposal) cubic feet; $5.45
every add'I 100
cubic feet.
Water (based on 1.5" Water District #20 No change $54 $1.45 /ccf same same
meter size winter rates)
ECectricity'* tlf Seattle City Light SCL, but rate
.y, (SCL) changes
Commercial: Small $6.68 /kWh $6.82 /kWh
Commercial: Medium $5.85 /kWh $5.97 /kWh
Commercial: Large $6.73 /kWh $6.94 /kWh
Small general service is provided to customers who are not metered, or in the last calendar year more than half their normal billings have been at less than 50
kW of demand.
Medium general service is provided to customers who in the last calendar year more than half their normal billings have been at less than 50 kW of demand
and half at less than 1000 kW of max demand..
Large general service is provided to customers whose maximum monthly demand is equal to or greater than 1000 kW but less than 10,000 kW.
21
Table D. How will Annexation Affect Government Services?
Service Served Now By... If annexed to Tukwila
Schools Seattle School District No change
Library King County Library System No change
Legislative (Council) Metropolitan King County Council Tukwila City Council (7 members)
Parks King County Parks Recreation Tukwila Parks Recreation
Permitting Zoning King County Development City of Tukwila Dept of Community
Environmental Services (DDES) Development
Fire Emergency N.Highline Fire District City of Tukwila Fire Dept
Medical Services
Level of Service 5 (travel time only) 10 12
(minutes):
Animal Control King County no change
King County (by contract)
Police Services King County Sheriff City of Tukwila Police Dept
Local Roads King County Dept of Transportation City of Tukwila Dept of Public Works
Court Services King County District Court Tukwila Municipal Court (misdemeanors)
(misdemeanors, small claims) King County District Court (small claims)
22
Exhibit I)
Annexation Process set forth by
King County Countywide Planning Policy LU -32
Tukwila designated the PAA in 1995; Seattle in 1996.
King County Countywide Planning Policy LU -32 establishes a process for resolving
PAA overlaps in the North Highline area:
1. The cities and county should attempt to establish alternative non overlapping PAA
boundaries through a process of negotiation.
2. Absent a negotiated resolution, a city may file a Notice of Intent to Annex with the
Boundary Review Board for King County after the following steps have been taken:
a. The city proposing annexation has, at least 30 days prior to filing a Notice of Intent
to annex with the Boundary Review Board, contacted in writing the cities with the
PAA overlap and the county to provide notification of the city's intent to annex
and to request a meeting or formal mediation to discuss boundary alternatives,
and;
b. The cities with the PAA overlap and the county have either:
i. Agreed to meet but failed to develop a negotiated settlement to the overlap
within 60 days of receipt of the notice, or;
ii. Declined to meet or failed to respond in writing within 30 days of receipt of the
notice.
Exhibit E
RCW 35A.14.470
Annexation of territory within urban growth areas County may initiate process
with other cities or towns Interlocal agreement Public hearing Ordinance
Referendum Election, when necessary.
(1) The legislative body of any county planning under chapter 36.70A RCW and subject
to the requirements of RCW 36.70A.215 may initiate an annexation process with the
legislative body of any other cities or towns that are contiguous to the territory proposed
for annexation in RCW 35A.14.460 if:
(a) The county legislative body initiated an annexation process as provided in RCW
35A.14.460; and
(b) The affected city legislative body adopted a responsive resolution rejecting the
23
proposed annexation or declined to create the requested interlocal agreement with the
county; or
(c) More than one hundred eighty days have passed since adoption of a county
resolution as provided for in RCW 35A.14.460 and the parties have not adopted or
executed an interlocal agreement providing for the annexation of unincorporated territory.
The legislative body for either the county or an affected city may, however, pass a
resolution extending the negotiation period for one or more six -month periods if a public
hearing is held and findings of fact are made prior to each extension.
(2) Any county initiating the process provided for in subsection (1) of this section
must do so by adopting a resolution commencing negotiations for an interlocal agreement
as provided in chapter 39.34 RCW between the county and any city or town within the
county. The annexation area must be within an urban growth area designated under RCW
36.70A.110 and at least sixty percent of the boundaries of the territory to be annexed
must be contiguous to one or more cities or towns.
(3) The agreement shall describe the boundaries of the territory to be annexed. A
public hearing shall be held by each legislative body, separately or jointly, before the
agreement is executed. Each legislative body holding a public hearing shall, separately or
jointly, publish the agreement at least once a week for two weeks before the date of the
hearing in one or more newspapers of general circulation within the territory proposed for
annexation.
(4) Following adoption and execution of the agreement by both legislative bodies, the
city or town legislative body shall adopt an ordinance providing for the annexation. The
legislative body shall cause notice of the proposed effective date of the annexation,
together with a description of the property to be annexed, to be published at least once
each week for two weeks subsequent to passage of the ordinance, in one or more
newspapers of general circulation within the city and in one or more newspapers of
general circulation within the territory to be annexed. If the annexation ordinance
provides for assumption of indebtedness or adoption of a proposed zoning regulation, the
notice shall include a statement of the requirements. Any area to be annexed through an
ordinance adopted under this section is annexed and becomes a part of the city or town
upon the date fixed in the ordinance of annexation, which date may not be less than forty
five days after adoption of the ordinance.
(5) The annexation ordinances provided for in RCW 35A.14.460(4) and subsection (4)
of this section are subject to referendum for forty -five days after passage. Upon the filing
of a timely and sufficient referendum petition with the legislative body, signed by
registered voters in number equal to not less than fifteen percent of the votes cast in the
last general state election in the area to be annexed, the question of annexation shall be
submitted to the voters of the area in a general election if one is to be held within ninety
days or at a special election called for that purpose according to RCW 29A.04.330.
Notice of the election shall be given as provided in RCW 35A.14.070 and the election
shall be conducted as provided in the general election law. The annexation shall be
24
deemed approved by the voters unless a majority of the votes cast on the proposition are
in opposition thereto.
After the expiration of the forty -fifth day from but excluding the date of passage of the
annexation ordinance, if no timely and sufficient referendum petition has been filed, the
area annexed shall become a part of the city or town upon the date fixed in the ordinance
of annexation.
(6) If more than one city or town adopts interlocal agreements providing for
annexation of the same unincorporated territory as provided by this section, an election
shall be held in the area to be annexed pursuant to RCW 35A.14.070. In addition to the
provisions of RCW 35A.14.070, the ballot shall also contain a separate proposition
allowing voters to cast votes in favor of annexation to any one city or town participating
in an interlocal agreement as provided by this section. If a majority of voters voting on
the proposition vote against annexation, the proposition is defeated. If, however, a
majority of voters voting in the election approve annexation, the area shall be annexed to
the city or town receiving the highest number of votes among those cast in favor of
annexation.
(7) Costs for an election required under subsection (6) of this section shall be borne by
the county.
25
blank
e� a. Exhibit F
Office of the Mayor
City ofSeaitle
i
'February 23, 2 —7")
The Honorable Dow Constantine
King County Executive
401 5` Avenue Suite 800
Seattle, WA 98104
The Honorable Joan McGilton
Mayor of Burien
400 SW 152 "d Street Suite 300
Burien, WA 98166
The Honorable Jim Haggerton
Mayor of Tukwila 0
6200 Southcenter Blvd.
Tukwila, WA .98188
The Honorable Wayne Alishokis
Chair, North Highline Fire District
1243 SW 112` Street
Seattle, WA 98146
RE: Notification of Seattle's Intent to Annex Formal Request for Meeting
Dear Executive Constantine, Mayor McGilton, Mayor Haggerton, and Commissioner Alishokis:
The City of Seattle is considering annexing the unincorporated North Highline area commonly
known as "White Center" (identified as Area Y in the attachment). Under King County
Countywide Planning Policies LU -32 which states in part:
"1. The city proposing annexation has, at least 30 days prior to filing a Notice of
Intent to annex with the Boundary Review Board, contacting in writing the cities
with the PAA overlap and the county to provide notification of the city's intent to
annex and to request a meeting or formal mediation to discuss boundary
alternatives, and;
2. The cities with the PAA overlap and the county have either:
a. Agreed to meet but failed to develop a negotiated settlement to
the overlap within 60 days of receipt of the notice, or
b. Declined to meet or failed to respond in writing within 30 days of
receipt of the notice."
Seattle City Hall, 7th Floor Tel (206) 684 -4000
600 Fourth Avenue Fax (206) 684 -5360
PO Box 94749 www.seattlegov /mayor
Seattle, WA 98124 -4749 mike.mcginn @seattle.gov
27
Executive Constantine, Mayor McGilton, Mayor Haggerton
February 23, 2011
Page 2
This letter shall serve as the City of Seattle's formal notice of its intent to annex and request for
a meeting or formal mediation with the cities of Burien and Tukwila and King County to discuss
boundary alternatives.
This letter does not represent a decision by the City of Seattle to seek annexation. As elected
officials you are aware of the financial realities that many of our jurisdictions are facing. Many of
us have had to make difficult decisions that resulted in reductions in services and in some cases
core services to our residents. With the uncertainty of the future financial picture, I want to
stress that any decision to proceed with the annexation process will depend upon its impact on
Seattle's financial future.
1 have designated,Marco.Lowe, Director,: Office of Intergovernmental Relations as the City of
Seattle's contact person on this matter. Please direct all correspondence on this matter.
If.you.have further questions, you can contact Kenny Pittman, Office of Intergovernmental
Relations at (206) 684 -8364 or kennv.oittman( seattle.gov.
Sincerely,
Michael McGinn
Mayor of
Attachment
cc: The Honorable Richard Conlin, President, Seattle City Council
Fred Jarrett, Deputy County Executive
Mike Martin, Burien City Manager
Steve. Lancaster, Tukwila City Administrator
Karen Freeman, King County, OSPPM
Marco Lowe, Director, Seattle Office of Intergovernmental Relations
Kenny Pittman, Seattle Office of Intergovernmental Relations
28
of Tukwila
r ...4.- 6200 Southcenter Boulevard Tukwila, Washington 98188 Jim Haggerton, Mayor
March 4, 2011
Mr. Marco Lowe
Director, Office of Intergovernmental Relations
City of Seattle
PO Box 94746
Seattle, WA 98124 -4746
RE: Notification of Seattle's Intent to Annex Formal Request for Meeting
Dear Mr. Lowe:
Thank you for the notice of Seattle's intent to annex the unincorporated North Highline area
(Area Y). The City of Tukwila is also considering annexing a smaller portion of the
unincorporated North Highline area that overlaps with Area Y (identified on the attached map).
Tukwila designated the North Highline PAA in their Comprehensive Plan in 1995, and in
conjunction with adjoining boundary issues, the PAA has been the subject of discussions between
Tukwila, Seattle and King County since 1997. Therefore, we welcome the opportunity to discuss
PAA boundary alternatives and develop a negotiated settlement.
The Tukwila City Council will be considering the annexation of our North Highline PAA in the
corning weeks. As such, we would like to move forward with a meeting or formal mediation
between the necessary parties as soon as possible. Please contact Jack Pace, Community
Development Director, at (206)431 -3686 to schedule a meeting.
Sincerely,
L
1 imHa;•vA.nn
J
Mayor
Attachment
Cc: The Honorable Dow Constantine, King County Executive
The Honorable Joan McGilton, Mayor of Burien
The Honorable Wayne Alishokis, Chair, North Highline Fire District
The Honorable Richard Conlin, President, Seattle City Council
Fred Jarrett, Deputy County Executive
Mike Martin, Burien City Manager
Steve Lancaster, Tukwila City Administrator
Karen Freeman, King County, OSPPM
Kenny Pittman, Seattle Office of Intergovernmental Affairs
Phone: 206 433 -1800 0 City Hall Fax: 206- 433 -1833 www.ci.tukwila.wa.us 29
30
,L;4
o City of Tukwila
1 u k, 1 Rick Still, Parks and Recreation Director
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Community Affairs and Parks Committee
FROM: Rick Still, Parks and Recreation Director
TzE Robert Eaton, Park /Facilities Project Coordinator
DATE: March 9, 2011
SUBJECT: Bid Award for Purchase of 34 Golf Carts
ISSUE
Award the bid for the purchase of thirty -four (34) Gas Powered Golf Carts for Foster Golf Links.
BACKGROUND
Foster Golf Links (FGL) currently owns 34 golf carts that were purchased through a 60 -month
lease to own program in 2005. The current fleet is 6yrs old and many carts need significant
repair or replacement. In addition, every year additional carts are rented to meet the high
demand during the busy months.
Staff desires to purchase 34 new carts based on need and demand. This will build the fleet and
rentals will not be needed; the fleet will be fully operational and overall in better condition.
Having more carts on hand at all times will provide more opportunities to generate revenue.
When the clubhouse was constructed in 2004 the plan was to have the carts on a 4yr
replacement cycle, this will begin that process to cycle out the older carts while growing the fleet
size to meet the demand.
The project was advertised for bids on February 17, 2011. Four bids were received and opened
on Thursday, March 3, 2011 and the bids were checked and tabulated.
Funding for the purchase of the carts is in the budget and comes from moving $16,100 out of
411.00.576.681.45.00 "Operating Rental and Leases" into 411.00.582.760.75.00 "Capital
Leases and Install" to increase that line to $27,766 annually since rentals will no longer be
needed. Instead of beginning another 60 -month lease, Foster Golf Links will "borrow from itself"
to make an outright purchase of the 34 new carts, which will recoup the savings of not having to
pay interest for the next 5 and half years on a lease and provide better carts sooner, the cost
savings is approximately $35,000 over 5 years and 7 months, using an annual payment of
$27,766 that is budgeted.
If operations continue as they did in 2010 a worst case scenario could arise. The extremely
poor weather in 2010 resulted in a fund loss of approximately $100,000 (after debt service
payments). This loss significantly impacted an already modest fund balance. If operations
continue as they did in 2010 the fund balance could go negative by the end of 2011 with the
31
INFORMATIONAL MEMO March 9, 2011
Bid Award for Purchase of 34 Golf Carts
Page 2
acquisition of 34 new carts. This would result in a need to allocate 2012 general fund subsidy to
the golf fund in 2011 to prevent a negative fund balance. This could simply be a timing issue
because the primary golf season is just around the corner and definitely a short term issue
because the "internal loan" will be paid back after four years. If the course experiences a
season similar to 2010, then additional contributions from the general fund will be necessary
within the current biennium, however this will correct itself in following biennium. Please see
alternatives below.
ANALYSIS
The project was advertised for bids on February 17, 2011. Four bids were received and opened
on Thursday, March 3, 2011 and the bids were checked and tabulated. Pacific Golf and Turf is
the apparent lowest bidder with a base bid of $114,030.00. The estimate was $120,000.00.
After reviewing the bids it was determined that Pacific Golf and Turf is the lowest qualified
bidder.
BUDGET AND BID SUMMARY
Estimate $120,000.00
Pacific Golf and Turf $114,030.00
Northwest Yamaha Golf Cars $114,360.00
Thermo Kind Northwest $130,130.00
MC Electric Vehicles $232,830.00
ALTERNATIVES
1. Reject all bids due to the negative fund balance issue utilize short -term lease through
the year and repair all current carts to fully operational at a cost of about $16,000.
Additional, maintenance cost may increase this price throughout the years. The short
term lease provides carts for only the high season and for large tournaments. This option
cost as much as purchasing carts. However, if purchased the revenue can be collected
on the carts throughout the entire year.
2. Reject all bids due to the negative fund balance issue utilize the National
Intergovernmental Purchasing Alliance Company (NIPA) lease option. This is like the
'state bid' program but it is a national program. The City of Tukwila is registered with this
program. The lease interest will cost approximately $35,000 more over a 67 -month term
(5 years 7 months). Potentially, the carts may not be here by May 2 when the golf
operations need to have the large number of carts.
3. Reduce the number of carts purchased. Reducing the number of carts could help to
reduce the negative fund balance issue. However, the bid proposals were for 34 carts. It
would have to be determined if we can reduce this number with the current bid packets
and be approved by the apparent lowest bidder. If the bids were rejected, and the bid
process reinitiated for a lesser number of carts, the vendors could not provide the carts
in time to meet the May 2 golf operation needs.
3 2 W:12011 Info Memos\Golf Cart Bid Award Informational Memo (3- 9- 11)REVISED.doc
INFORMATIONAL MEMO March 9, 2011
Bid Award for Purchase of 34 Golf Carts
Page 3
RECOMMENDATION
The Council is being asked approve the recommendation of a bid award for the purchase of
thirty -four (34) gas powered golf carts to Pacific Golf and Turf in the amount of $114,030.00
consider this item at the March 28, 2011 Committee of the Whole meeting and subsequent April
4, 2011 Regular meeting.
ATTACHMENTS
Exhibit A Pacific Golf and Turf Bid
Exhibit B Pacific Golf and Turf Loaner Fleet Commitment
Exhibit C Bid Tabulation dated March 3, 2011
Exhibit D Budget Sheet Pg 283
W:12011 Info Memos \Golf Cart Bid Award Informational Memo (3- 9- 11)REVISED.doc
33
34
Exhibit A
Y
ailvk4,
Dt.)r., it r Tuki;
i „..t. 30; _.e7 4 16' 1.k
7908
SPECIFIC TIONS
THIRTY -FOUR (34) GAS POWERED GOLF CARTS
This specification is to set forth the specific requirements for a fleet of thirty -four (34) gas
powered golf carts, numbered 1 34. The carts are to be new 2011, two seat capacity,
gas powered, white body with white or similar colored roof and have a solid windshield,
sweater basket, drink holders and hub caps. Bid will include the Trade in of ten (10) 2005
Club Car Precedent Golf Carts in running condition.
These devices shall be to the manufacturer's standard. They shall be equipped with the
manufacturer's equipment and accessories which are included as standard in the
advertised and published literature for these units. No such item of equipment or
accessories shall be removed or omitted for the reason that it was not specified in the bid.
If it is necessary to bid alternate equipment or to take exceptions to the specifications as
set forth, this must be so stated in your bid. For each item, please place an X in the
appropriate space (Yes No) to signify whether or not you are in complete compliance
with the specification. Failure to follow the format or answer the specification may cause
your bid to be disqualified. If you need extra space to describe your product, please
attach extra sheets. When doing this, be sure your description references the appropriate
question number.
Delivery of all thirty -four (34) carts must be by 10:OOam on Monday, May 2, 2011. If new
vehicles are not delivered by this date and time then a loaner fleet of thirty -four (34)
comparable carts in good operational condition shall be provided to the City of Tukwila,
Foster Golf Links, at no additional charge until delivery of purchased equipment happens.
All carts are to be factory set to regulate speed control to a maximum speed of 10mph.
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35
CONIPLV
SPECIFICATIONS YES NO
1. Gas Engine X
2. Minimum 350cc's X
3. Minimum speed of 8mph Y
4. Four Rubber Tired Wheels V
5. Bag Carrier Y
6. Bumpers x
7. Minimum 5 gal fuel tank capacity I
8. 2 person seating capacity
9. Color White Body X
11. Color White or similar Tight color roof X
12. Solid Windshield X
13. Sweater Basket X
14. Drink Holders Please specify number
15. Numbered Decals (1 34) X
16. Hub Caps k
17. Manuals: Four (4) Operator's and Four (4) X
Maintenance /Parts manuals
18. a. Delivery of all completed golf carts by 10:00a.m. on
Monday, May 2, 2011 X musr /„,L Vcaag 'o Z
r n-s 9-5 "fri
b. Delivery of all completed loaner golf carts by 10:OOa.m. on re �C �nY.
Monday, May 2, 2011 if purchased carts are not delivered.
19. Full Four (4) year coverage warranty. X
20. Please list on separate sheet of paper, any additional
pertinent information not covered in the specifications area of
this bid, (i.e. loaner carts during warranty repair work, rental
pricing for extra carts, etc.) and any significant benefits
associated with the purchase of your carts. X
21. Supply a copy of manufacturer's warranty with bid. X
22. Supply a copy of any additional dealer's warranty with bid X
23. Vendor to state number of years in business as a golf cart
supplier ,2.5 W --Ax's
24. Completed units are to be delivered to the following address,
cleaned. numbered. and ready to place in service:
(Customer) City of Tukwila Foster Golf Links
(Street address) 13500 Interurban Avenue South
(City, State, Zip Code) Tukwila, WA 98168
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36
COMPLY
SPECIFICATIONS YES NO
25. MANUALS: SUCCESSFUL BIDDER SHALL PROVIDE
FOUR (4) SETS OF THE FOLLOWING: 1(
1. Service manual
2. Parts manual
3. Lubrication charts (if applicable) X
4. Wiring schematic (as built) X
5. Operator manual
26. Are manuals available on computer disk? if yes, please X(
provide one CD of each manual.
27. Sets will include, but will not limited to:
1. Engine
2. Electrical and diagnostics X
28. All manuals will be available with the vehicle at the time of
delivery.
29. TRAINING: Give name and phone number of a person or
persons who would be available to assist in solving technical
problems
Name Im L r- 6(- LRVIGC- 425 X54 5 0q
is ei s A/J'N46.6e
30. Mechanic Training may be at factory or on -site, and will
consist of, but not limited to, engine, transmission, brakes,
wiring and electrical systems, and suspension. Trainer will
provide all visual and teaching aids needed. Training will be
within 60 days after delivery. Training not conducted at
Tukwila will include all expenses to training site and returning x
to Tukwila. Training is to be at a mutually agreeable date
and time. Training requested is for 1 day for 4 hours.
31. The City of Tukwila reserves the right to waive, decline, or
take exception to any order if specifications are not met or
changes are not approved.
MINIMUM REQUIREMENTIES FOR WARRANTY BELOW:
1 Component
I Yrs LVilleso`r Hours •Manufacturer shame
1 Clutch System 1;4 3 A //-1 26-0
1 Suspension 1 1
1 Transaxles 1 J
Control Cables 1x'2 1 1
Speed Controller 1 4 1 1
1 Brake System 14 1 1 I
1 Frame 1)4 LIFE I 1
1 Electrical System 1,4' 1 1
1 1
Body Panels, Trim, Bumpers 1 3 1 1
Seats 14 1 1 1
I Canopy /Roof System 1 4 1
Powertrain (engine, starter, f' I qi
R t e
torque converter, etc)
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37
YES NO COMMENTS
The City of Tukwila shall be authorized to make minor
emergency repairs and will be reimbursed by the bidder as per
applicable warranty for parts and labor, not to exceed two
hundred ($200.00) dollars per incident.
Bidder will pay all transportation costs associated with warranted
repairs, unless a mutually agreed -upon site or method of v
transport is used.
At no cost to the City of Tukwila, prior to warranty expiration, the C4-r is RECru .o scr}G
bidder will make an equipment inspection and perform any
warrantable repairs.
The warranty will include the cost of transporting, if necessary,
because of the failure of a warranted part.
Replacement and /or rebuilt parts warranty will be six (6) months P4 J2
��yy !;C-PM L- tirG -�v3 Ts w�o�
after installation or manufacturer's warranty, if longer. fi Gov6,foo ,3y P26-0 IA/461,4AIT
If the failure of any system or subsystem causes the failure of
another system, the warranty of the original failure will cover all X
subsequent failures.
Bidder is to provide to the City of Tukwila, at no cost, all forms, Lea .mvrs; 6 3.M 1
books or software, including points of contact, necessary to
submit warranty claims. Au- wg C49144S
Repairs made by the bidder shall begin within five (5) days of
notification and be completed in a timely manner.
Parts to be shipped within five (5) days of request. V CoNfl o v 1Ci5 prior
EC-1- o, 13A41141: -y¢ FfrOM C2&C,
USE OF OTHER NAMES AND REFERENCES
Unless otherwise stated, the use of manufacturer's name and product numbers are for
descriptive purposes and establishing general quality levels only. They are not intended
to be restrictive. Bidders are required to state exactly what they intend to furnish,
otherwise, it is fully understood that they shall furnish all items as stated.
BROCHURES AND LITERATURE
Your proposal must be accompanied by descriptive literature (marked), indicating the
exact items to be furnished. The term "as specified" will not be acceptable.
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38
BID SUBMITTAL SHEET
THIRTY -FOUR (34) GAS POWERED GOLF CARTS
Make /model proposed:
2n11 ��Go s
Unit Price Per Golf Cart as specified: 3 S o 0
Total Price for Thirty -Four (34) Golf Carts as specified: 030'
<Sales tax is not included, the City charges sales tax at the time of renting the carts to golfers.>
Trade -In Price Per Cart for 2005 Club Car Precedent Golf Carts: 1, SOO'
Total Trade -In Price for Ten (10) Golf Carts: /.5: 000 „ALL_ TRAocs Muss 5 7 5
/.4/0 1( C.2 DUI'1IV$- 4/0,01,91_ o ie9 Tu&t/ 4N /1/o�- EXg3 cosi+'1G -TlG D44.4 )3GYoivo
A/o,Qir)q- 114/2 re e
TOTAL (after Trade -In amount deducted): 14,0 3
Delivery time in calendar days after receipt of order: 45 OAYs 1 reil7 /fe3,96.- GnM44- 2 1 14 2
Do you certify that you are not on the Comptroller General's list of ineligible contractors nor the list
of parties excluded from Federal procurement or nonprocurement programs? (Yes) No
Company Name /i /6/4. UBI# &a. eecK 19.5
Address /5/ 9 3VVKF0co Ave
City /State /Zip code /n rt0M1 WA qa2 q
OFFAL& 260 568 =7795
Phonel&L, 253 5O5- Fax 360 5( -77 TH
Name (please print) ■)r,/ST,v Aar Title 1� �Ayi -Try U ��ccs /1c- �.resc- �r�rAT�uc-
Signed �a Date 3 3- /1
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39
Thank for the opportunity to bid for the cart fleet at Fosters Links. Please take the following page of
information into consideration when reviewing the bid.
While no golf car manufacture carries a full four warranty on their cars, EZGO does have the
most coverage of any manufacturer. I have attached a comparison sheet showing the factory
warranties of both EZGO and our competitors.
The 401cc, 4 cycle, low emission engine in the EZGO TXT car provides 13 horsepower. This extra
power allows the EZGO TXT car to run at a lower RPM thus using less fuel and providing a ride
with less vibration then other cars. This engine also uses a standard screw on oil filter to protect
the engine where one of our competitors uses a splash style oil system with no oil pump or oil
filter.
Rentals are available before delivery but we must know how long they will be needed before
we are able to determine if there will be a charge for them or not. This will be determined from
when the order is received if we are the successful bidder.
Pacific Golf and Turf Headquarters are located in Ridgefield Washington. With offices in
Snohomish, Spokane, Ridgefield, and four additional in Oregon and Hawaii allows Pacific Golf
and Turf to stock a large inventory of parts. Based out of Snohomish we employ a full time
mobile golf car mechanic to provide you with any of your warranty or service needs.
If there are any questions during the discussion period please do not hesitate to give me a call
or email.
Tha ou
ustin Rose
Pacific Golf and Turf
Washington Sales Representative
(253) 508 -9192
jrrose @pacificgolfturf.com
40
Bod Parts front/rear cowls, side & instrument anels
.:9gfegi3.Al.febi*Miiielli
gliN.O:k...;.3.W.0,df,S.V.t..Va;Eff:.:
a Years
3 Years
Ki:',Ig.•':;.0.0illXear.Man
'Controller/
Charger
::!:::§Rt ri:.5Y.:4Nd'afgigi,MiA
4§1.adi.4:iYe'ai.;4;'{i't;
■ 4 Years .
4 Years
4 Years
ligtR.4We'atiRkka'
4•Years
4 Years
li;W:i?-1:41W.dat5.3kiNgg
Steering Box, Column
affigkWareIltarR
i Exhaust / Intake / Generator
F.:f3i.,23§Yie'ait9:752A
:E:ManattS.,fty.;$.,
' 3 Years
3 Years
4 Years•
Electrical System
VIS:f-4,Y.eatagagm
M.M.3;1201.edtrg.5.7.gag.
:. 2•Years
2 Years
2 Years
Exhibit B
7777/
0
131311 Turf
If the PO from the City of Tukwila for 34 golf cars is released on April 5 Pacific
Golf and Turf will provide 34 rental golf cars until the 34 new 2011 EZGO TXT Gas
cars are delivered to Fosters Golf. This will consist of the 10 used trade -in from
Fosters and 24 cars from Pacific Golf and Turf.
Thank you
r
Justin Rose
Pacific Golf and Turf
253 508 -9192
42
CITY OF TUKWILA Exhibit C
OFFICE OF THE CITY CLERK
Christy O'Flahertv, CMC, City Clerk
BID OPENING
Thirty Four (34) Gas Powered Golf Carts
March 3, 2011 10:00 A.M.
SECURITY ADDENDUMS TOTAL I3ASE BID APPARENT
BIDDER NAME BID ACKNOWLEDGED PRICE LOWEST BIDDER
DATE
E
Thermo King Northwest
02/28/2011 3:41 PM 130,130.00 3
Northwest Yamaha Golf Cars
03/01/2011 10:53 AM 114,360.00 2
MC Electric Vehicles
03/03/2011 8:47 AM 232,830.00 4
Pacific Golf and Turf
03/03/2011 8:54 AM 114,030.00 1
120
The above figures appear as written within bid documents; and as read aloud at bid
opening. THEY DO NOT however, REPRESENT ANY BID AWARD; apparent low, or
otherwise.
DATED this 3 day of March, 2011.
./s/
c2"
Christy O'Flahe City Clerk
43
2011 -2012 Biennial Budget City of Tukwila, Washington
Foster Golf Operations Exhibit D
Expenditure Revenue Summary
2008 2009 2010 2011 2012 2010 -11 2011 -12
Object Description ACTUAL ACTUAL BUDGET BUDGET BUDGET change °/o change
10 Salaries Wages 672,795 739,968 769,240 802,027 826,927 426% 3.10 %1
20 Personnel Benefits 250,920 267,686 321,016 238,654 264,461 25.66% 10.81 %I
30 Supplies 197,518 1 189,925 230,000 231,908 231,908 0.83% 0.00 %1
40 Other Services Charges 181,818 1 308,251 316,675 293,107 285,282 -7.44% 2.67 %1
50 Intergovt. Services Taxes 7,0771 68,194 6,000 72,000 73,000 1100.00% 1.39 %1
60 Capital Outlays 5 1 50,000 75,000 25,000 50.00% 66.67 %1
00 Other 175;417 1 159,784 738,978 571,673 579,183 22.64% 1.31%
EXPENDITURE TOTAL 1,485,545 1 1,733,808 2,431,909 2,284,369 2,285,761 6.07% 0.06%
I REVENUE
Golf Fund 411 Working Capital (600,439) (22,265) 169,909 372,169 370,514 1 119.04 %1 -0.44%
Greens Fees 1,098,808 1,043,663 1,310,000 1,200,000 1,200,000 1 8.40 %1 0.00%
'Transfers -In 502,240 328,559 450,000 225,000 225,0001 50.00 %1 0.00%
'Power Cart Rentals 7192,078 186,040 186,000 195,000 195,000 1 4.84 %1 0.00%
Sales of Merchandise 170,262 157,967 170,000 128,000 130,000 24.71 %I 1.56%
Concession Proceeds 50,499 19,248 120,000 120,000 120,000 0.00 %l 0.00%
i
'Miscellaneous Revenue 72,097 20,596, 26,000 44 ;200 45,247 1 70.00 %1 2.37%
)REVENUE TOTAL 1,485,545 1,733,808 2,431,909 2,284,369 2,285,761 1 6.07 %1 0.06%
i
a
s
J
4
Page 263
44
.4.14 ILA_ 4
y City of Tukwila
1 m Jim Haggerton, Mayor
‘V'-'4*1 e 's }T9_o 7 INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Community Affairs and Parks Committee
FROM: Rick Still, Parks and Recreation Dire.
DATE: March 9, 2011
SUBJECT: 2010 Parks and Recreation Annual Report
cc: Steve Lancaster, City Administrator
ISSUE
The attached report represents statistics, citizen spotlights, testimonials and overall highlights
that occurred throughout 2010 within the department. The report also demonstrates
accomplishments as a department and the fantastic work of our staff.
Staff will be available to answer questions.
RECOMMENDATION
Information only.
ATTACHMENTS
Tukwila Parks and Recreation 2010 Annual Report
45