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HomeMy WebLinkAboutCOW 2011-03-14 Item 4E - Resolution - Request a Special Election COUNCIL AGENDA SYNOPSIS 41IL'A w ITEM 4 J� h Initials 4 t l N Meeting Date 1 Prepared by I Mayor's review 1 Council review 1 9 1p o 1 03/14/11 1 MH 1 ‘1 ,'-'7"'41(07 a90• I 1 I ITEM INFORMATION ICAS NUMBER: 11-034 I STAFF SPONSOR: KIMBERLY MATE? I ORIGINAL AGENDA DATE: 3/14/11 AGENDA ITEM I M TITLE Special Election timeline Metropolitan Park District C.\'i'I Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 03/14/11 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date IS1) Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PW SPONSOR'S At the July 12, 2010 Committee of the Whole meeting, there was Council consensus to SUMMARY pursue a special election for the formation of a Tukwila Pool Metropolitan Park District ballot measure. The next available date for requesting a special election for the ballot measure is August 16, 2011. RI ,YII3WED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 02/28/11 COMMITTEE CHAIR: SEAL RECOMMENDATIONS: SPONSOR /ADMIN. City Administration and Parks and Recreation Department CoMMIiTFEE Forward to Committee of the Whole for discussion COST IMPACT /:FUND,SOURCE EYPENDITURI REQUIRED AMOUNT B UDGETED APPROPRIATION REQUIRED Fund Source: Cotnzments MTG. DATE I RECORD OF COUNCIL ACTION 03/14/11 MTG. DATE I ATTACHMENTS 03/14/11 I Informational Memorandum dated 02/23/11 from Kimberly Matej Informational Memorandum dated 02/23/11 from Rick Still Resolution in draft form I I Informational Memorandum dated 06/21/10, with attachments I I Minutes from the Community Affairs and Parks Committee meeting of 2/28/11 187 188 I LA iv City of Tukwila CI o City Council 190. MEMORANDUM TO: Community Affairs Parks Committee FROM: Kimberly Matej, Legislative Analyst CC: Mayor Haggerton; Steve Lancaster, City Administrator; Shelley Kerslake, City Attorney; and Rick Still, Parks Recreation Director DATE: February 23, 2011 SUBJECT: Special Election /Primary Timeline Metropolitan Park District ISSUE Staff is seeking Council direction regarding whether or not to pursue a ballot measure regarding the formation and funding of a Tukwila Pool Metropolitan Park District for the primary election on August 16, 2011. In the event the Council decides to pursue a ballot measure in the August election, staff has included a draft ballot measure resolution for Council review and approval. This draft resolution requests the King County Elections Director to call a Special Election on August 16, 2011, and include a ballot measure. Specific information included in the draft resolution has been taken directly from a memo from Rick Still, Parks Recreation Director, dated February 23, 2011, to the City Council and Mayor Haggerton. This memo is included in this packet as Attachment A. BACKGROUND At the July 12, 2010, Committee of the Whole, Council consensus existed to pursue a special election in February 2011 for the formation of a Tukwila Pool Metropolitan Park District ballot measure. The deadline for meeting the requirements to submit a ballot measure for a February election have since passed, and a special election regarding the formation of a Tukwila Pool Metropolitan Park District was not on the ballot. In consideration of the Council process for review and approval of material relative to placing a measure on the ballot, the next available date for requesting a special election for the above ballot measure is August 16, 2011. DISCUSSION Among the many steps involved in preparing information for a vote on levying a general tax on property, prior to filing a ballot measure, the jurisdiction must pass a resolution and present it to the King County Elections Director. In order to meet the King County elections deadlines, this resolution must be filed with the King County Elections Director by May 24. 2011. The timeline on the next page outlines the additional deadlines associated with ballot measure submission for the August 16 special /primary election. The success of this measure relies significantly on the involvement of a special interest /grass roots committee, as City and /or Council involvement is extremely limited by the Public Disclosure Commission. The Public Disclosure Commission applies the same interpretation to the support /opposition of ballot measures as it does to support /opposition of candidates running for public office. Therefore, there are strict regulations regarding the use of public funds, facilities, agency resources, production and distribution of materials, etc. The City and /or its employees cannot be an active participant in the support/opposition of any ballot measure. The City may only Provide factual information that may assist voters in makina a decision. 189 Special Election Timeline page 2 AUGUST 16, 2011 SPECIAL /PRIMARY ELECTION Estimated Election Costs Election $13,700 $17,125 Voter Pamphlet $500- $1,000 Timeline February 28, 2011 Community Affairs Parks Committee reviews and recommends to full Council a draft resolution that requests the King County Elections Director to call a Special Election on August 16, 2011, and include a ballot measure. March 14, 2011 Committee of the Whole discusses draft resolution as recommended by Community Affairs Parks Committee March 21, 2011 Council determines (approves), at Regular meeting, resolution requesting special election, ballot measure and other items as necessary. May 24, 2011 Ballot Measure /Resolution due to King County Elections requesting special election. June 1, 2011 Pro /Con statements for voter pamphlet due to King County Elections. June 3, 2011 Rebuttal statements for voter pamphlet due to King County Elections. August 16, 2011 Election Day. August 31, 2011 Election is certified by King County. The draft resolution requesting the King County Elections Director to call a Special Election on August 16, 2011, and include a ballot measure for the formation and funding of a of a Tukwila Pool Metropolitan Park District is included in the packet as Attachment B for Council review. In summary, the draft resolution outlines the following information below, which was taken largely from the memorandum submitted as Attachment A to this packet. History Establishes lack of funding Requests an election Outlines the boundaries of the proposed district Authorizes a general property tax levy Sets the district's governance structure RECOMMENDATION No staff recommendation. Staff will await a formal Council decision prior to proceeding further. ATTACHMENTS Attachment A: Memo from Rick Still, Parks Recreation Director, dated February 23, 2011 Attachment B: Draft resolution 190 ATTACHMENT A Memo from Rick Still, Parks Recreation Director, dated February 23, 2011 191 ��1 1LA Asti Ci ty of Tukwila G.) Jim Haggerton, Mayor 190: INFORMATIONAL MEMORANDUM TO: Jim Haggerton, Mayor Community Affairs and Parks Committee FROM: Rick Still, Director of Parks Recreation DATE: February 23, 2011 SUBJECT: Tukwila Pool Metropolitan Park District Funding Option ISSUE The City Council requested that staff investigate the creation of a Metropolitan Park District to fund the continued operations and improvements of the City of Tukwila Pool. BACKGROUND At the August 9, 2010 Committee of the Whole meeting, the City Council provided consensus direction on seven policy decision points related to the establishment of a Tukwila Pool Metropolitan Park District. The guidance provided by the City Council was based upon staff presentation of the August 5, 2010 Informational Memorandum that detailed the seven Decision Points to consider when establishing a Metropolitan Pool District. A summary of the City Council's guidance is as follows: 1. GOVERNANCE: The City Council should be established as an ex officio capacity as the board of metropolitan park commissioners. 2. BOUNDARIES: Establish the boundaries to be contiguous with the City of Tukwila boundaries. 3. SUPPORT SERVICES: Determine this once the policy decisions are made regarding the Governance and Boundaries and staff prepares a cost analysis of the various support services methods. 4. OPERATING BUDGET EXPENDITURES AND REVENUE: Use the proposed expenditure and revenue budget outlined in Exhibit 1 until after the Support Services cost analysis is completed and the lease issue is resolved with the Tukwila School District. 5. CAPITAL IMPROVEMENT PROGRAM: Use the proposed Capital Improvement budget outlined in Exhibit 2. 6. MILLAGE RATE: Use the proposed Millage Rate of $0.15 per $1,000 assessed value. 7. BALLOT MEASURE TIMELINE: Use the proposed Timeline outlined in Attachment B for the February 8, 2011 election. DISCUSSION OF DECISION POINTS Below please find a brief discussion of the seven Decisions Points: 1. GOVERNANCE: A MPD will be composed of a board of metropolitan park commissioners through one of these methods: a) five park commissioners elected at the time of the ballot measure, b) the City Council to be designated to serve in an ex officio capacity as the board of metropolitan park commissioners, or c) if the district is located within more than 192 INFORMATIONAL MEMO February 23, 2011 Tukwila Pool Metropolitan Park District Funding Option Page 2 one city or county each governing body may be designated to collectively serve ex officio as the board of metropolitan park commissioners. POLICY DECISION 1: What form of Governance should be established for the MPD? Staff Recommendation: That the City Council should be established as an ex officio capacity as the board of metropolitan park commissioners. 2. BOUNDARIES: The MPD may include territory located within one city or county, or may include portions of one or more cities or counties. POLICY DECISION 2: What Boundaries should be established for the MPD? Staff Recommendation: Establish the boundaries to be contiguous with the City of Tukwila boundaries. 3. SUPPORT SERVICES: Consideration of support services that the MPD will need to include are payroll, finance, legal, and insurance to complete day to day operations. Currently these services are provided by the City. Support service options may include: a. City: a contract with the City to perform support services. b. Contracted Services: the MPD can contract these services with outside agencies. c. MPD Staff: most services can be completed in house' by an executive director /MPD manager d. Combination: a mixture of the above. A cost analysis of each support services method varies greatly depending upon the Governance, Boundaries, level of service and various needs that may arise, especially for legal services. Staff is prepared to investigate and develop a cost analysis once final direction is provided. POLICY DECISION 3: What Support Services method should be established for implementing the MPD? Staff Recommendation: For initiating the MPD, City Support Services should be used to determine the operating budget and millage rate. Once the MPD is established alternate and potential cost saving methods of providing support services could be identified and utilized. 4. OPERATING BUDGET EXPENDITURES AND REVENUE: The 2011 to 2021 budget scenarios are based on the approved 2011 budget. An anticipated growth rate for revenue is 1% for pool participant fees and 2% for tax receipts, while the expenditures are anticipated to increase at about 4% per year. Table 1 is a summary of this budget scenario projected out 20 years. This is a conservative approach that is based on minimum revenue growth and higher expenditure growth. The associated projections allow for a 20 year expenditure and revenue plan that is balanced at the end of the 20 year term. These projections include city -wide overhead and department costs, demolition costs, land lease costs, full time and part-time labor wages and benefits, operating supplies and utilities, and Capital Improvements. Staff is prepared to investigate and develop a cost analysis of alternate pool operator options for the MPD. 2232011 1058 10A 1 93 INFORMATIONAL MEMO February 23, 2011 Tukwila Pool Metropolitan Park District Funding Option Page 3 TABLE 1 TUKWILA POOL PROJECT REVENUES AND EXPENDITURES, 2012 -2021 I Revenue 1 2012 2031 Average Programs 207,050 250,139 227,952 Rentals Tax Revenue 1 776,240 1 1,130,835 1 943,029 Total 1 983,290 1,380,974 1 1,170,981 Expenditures Overhead 242,837 456,462 353,199 Operations 579,379 1,220,664 1 862,640 Total 1 822,215 1,611,126 1 1,170,884 POLICY DECISION 4: What expenditure and revenue budget should be established for implementing the MPD? Staff Recommendation: Use the proposed expenditure and revenue budget outlined in Exhibit 1. Once the MPD is established, alternate and potential cost saving methods of providing pool operations could be identified and utilized. 5. CAPITAL IMPROVEMENT PROGRAM: The Tukwila Pool is 38 years old and is in need of repairs, renovations and replacement of fixed assets to make the pool operate more efficiently, to keep the pool operating properly and to increase the longevity and integrity of the pool. Table 2 demonstrates a review of the types of improvements that will reduce operational costs and extend the life of the pool. A full list of Capital Improvements can be found on Exhibit 2. TABLE 2 TUKWILA POOL CAPITAL IMPROVEMENT PROJECTS Capital Projects Cost Timeline a. Energy Efficiency Projects 121,500 2011 -2012 b. Operational Projects I 334,500 I 2012 -2013 c. Longevity and Integrity 317,000 2013 -2018 Projects Total I 773,000 POLICY DECISION 5: What Capital Improvement budget should be established for implementing the MPD? Staff Recommendation: Use the proposed Capital Improvement budget outlined in Exhibit 2. These projects need to be completed if the pool is to be viable for current and future operations. 6. MILLAGE RATE: The millage rate or tax rate would be established by the City Council and subject to voter approval through formation of a Metropolitan Park District. To determine this rate the operating and capital budgets need to be finalized. The millage rate should be set to cover the cost above the program and rental revenue based on the term of the pool lease. A tax rate of $0.15 per $1,000 assessed value would secure the funding that is needed to continue current pool operations. 1 94. 2rtsam 1058:10AM INFORMATIONAL MEMO February 23, 2011 Tukwila Pool Metropolitan Park District Funding Option Page 4 The impact of the millage rate can be determined by using the assessed value of the home times the millage rate. For the examples below, the average single family home assessed value in the City of Tukwila is $249,475. Table 3 indicates approximately what the annual and monthly cost would be for a single family resident with the average assessed value assuming the boundaries would be contiguous within City boundaries. Likewise, the cost for multi family and condominiums are included. TABLE 3 AVERAGE COST PER TYPE OF HOME Average Multi Familv Average Condominium Average Single Famillt Home Assessed Value Assessed Value Home Assessed Value Per Unit 239,475 1,806,516 177,720 Average Average Average Tax Annual Per month Annual Per month Annual Per month Rate Rate Cost Rate Cost Rate Cost 0.15 35.92 2.99 8.87 0.74 26.66 2.22 POLICY DECISION 6: What Millage Rate should be established for implementing the MPD? Staff Recommendation: Use the proposed Millage Rate of $0.15 per $1,000 assessed value. The tax rate could be reduced at a later time if the cost associated with various decision points above decrease the needed tax revenue. 7. BALLOT MEASURE TIMELINE: The desired February 8, 2011 was not obtained and staff recommends an August 16, 2011. Table 4 is a brief outline of the Ballot Measure Timeline for an August election. TABLE 4 BALLOT MEASURE TIMELINE Date 1 Action 1 02/28/11 Draft resolution to enter City Council process 02/28/11 TSD Pool Land Lease discussions finalized 05/24/11 Ballot Measure /Resolution due to King County requesting special election 08/16/11 Special Election POLICY DECISION 7: What Timeline should be established for implementing the MPD? Staff Recommendation: Use the proposed Timeline outlined in TABLE 4 for the August 16, 2011 election. 2/23/2011 10 58 '.10 AM 19 5 INFORMATIONAL MEMO February 23, 2011 Tukwila Pool Metropolitan Park District Funding Option Page 5 ALTERNATIVES If the MPD does not pass in August, the options for the future operations of the Tukwila Pool include: a. Transfer operating responsibilities of the pool to a third party as described in the June 22, 2010 Informational Memorandum. b. Contract subsidized services with another pool. For example, an arrangement with the SeaTac YMCA could be made for Tukwila residents to be able to participate in swimming programs at the YMCA at a reduced rate. c. Review options submitted to council on June 22, 2010. RECOMMENDATION Provide policy direction on the seven (7) decision points. ATTACHMENTS Exhibit 1 Revenue and Expenditure 20 -year projections Exhibit 2 CIP Projects 2011 -2031 19 6 223/2011 1058 10 nM Revenue and Expenditures 20 year Projections TUKWILA POOL Exhibit 1 Metropolitan Park District ANNUAL ESTIMATED REV 1% Increase per year in fee revenue and 2% for Property Tax revenue 10 -Year 15-Year 20 -Year 2011 1 2012 1 2013 1 2014 1 2015 1 2016 1 2017 1 2018 1 2019 1 2020 1 2021 1 2022 1 2023 1 2024 1 2025 1 2026 1 2027 1 2028 1 2029 1 2030 1 2031 1 PROGRAMS 1 %growthl 114,000 1 115,1401 116,2911 117,454 1 118,6291 119,815 1 121,013 1 122,223 1 123,446 1 124,680 1 125,9271 127,186 1 128,458 1 129,743 1 131,040 132,3501 133,6741 135,011 I 136,361 1 137,724 139,102 2 RENTALS 1 %growthl 91,000 1 91,910 1 92,829 1 93,757 1 94,695 1 95,642 1 96,5981 97,564 1 98,540 1 99,525 1 100,521 I 101,526 1 102,5411 103,566 104,602 1 105,648 106,705 1 107,772 1 108,849 I 109,9381 111,037 3 TAX REVENUE 10.15 at 2% growthI 761,020 I 776,2401 791,765 1 807,600 1 823,752 1 840,227 1 857,032 1 874,172 1 891,656L 909,4891 927,6791 946,232 1 965,157 1 984,460 1 1,004,1491 1,024,232 1,044,717 1 1,065,611 I 5 1,086,923 I 1,108,662 1 1,130,835 4 TOTAL REVENUE 968,031 I 983,290 1,000,885 1,018,812 1,037,076 1,055,684 1,074,643 1,093,960 1,113,641 1,133,694 1,154,126 1,174,9441 1,196,1561 1,217,7691 1,239,791 1,262,2311 1,285,095 I 1,308,3941 1,332,1341 1,356,3241 1,380,974 5 CARRYOVER and RESERVES 161,074 311,289 449,837 575,872 688,507 786,264 868,719 934,850 983,589 1,013,817 1,023,788 1,012,850 961,719 905,054 759,447 716,532 645,669 429,749 298,093 1,941; ANNUAL ESTIMATED EXPI 4% increase per year based on 2010 original budget, less 3% budget directive 10 -Year 15 -Year I 20 -Year OVERHEAD 2011 2012 1 2013 1 2014 1 2015 1 2016 1 2017 1 2018 1 2019 I 2020 1 2021 1 2022 1 2023 1 2024 1 2025 1 2026 1 2027 I 2028 1 2029 1 2030 1 2031 6 OVERHEAD 1 34,488 1 142,950 1 148,230 1 153,721 I 159,432 1 165,371 1 172.096 1 178,520 1 185,200 I 192,149 1 199,375 1 207,465 1 215.280 1 223,409 I 231,862 1 240,6541 250,401 I 259,910 I 269,799 1 280,084 1 290,780 7 CIP RESERVE 101a.6wa 6awa- nlw,w1 1 1 1 1 1 I I 1 I I 1 1 I 18,0001 1 60.0001 1 1 115.5001 1 131.500 ss,,000 7 DEMO •x MaMn0 ,.ars 1 300,000 1 34,182 1 34,182 1 34,182 1 34.182 1 34.182 1 34.182 1 34.182 1 34,182 1 34,182 1 34,1821 34.182 I 34,182 1 34,182 1 34,1821 34,1821 34.182 1 34,182 1 34.182 I 34.1821 34,182 683.630 8 BOND PAYMENT (see CIP Page)I 1 65.705 1 65,705 1 65.705 1 65,705 1 65,705 1 65.705 1 65.705 1 65.705 I_ 65,7051 65,705 1 65,705 1 65,705 1 65.705 1 65.705 65.705 1 1 1 1 1 Total Overhead 334,488 I 242,8371 248,1171 253,6081 259,3191 265,2581 271,982278,406 I 285,0871 292,0351 299,261 307,3511 315,1671 341,295 1 331,749 404,540 284,5821 294,0911 419,4801 314,265 456,462 amn0..e me.n OPERATIONS 2011 2012 1 2013 1 2014 1 2015 1 2016 1 2017 1 2018 1 2019 1 2020 1 2021 1 2022 1 2023 1 2024 1 2025 1 2026 1 2027 1 2028 1 2029 1 2030 1 2031 9 SALARIES WAGES 292.892 299.572 1 311.555 1 324.017 I 336.978 1 350.457 1 364,475 1 379,054 I 394.216 1 409,985 1 426,384 1 443.440 1 461.177 I 479,624 1 498.809 I 518.7621 539.512 I 561.093 1 583.536 1 606.878 1 631.153 10 PERSONNEL BENEFITS 106.964 116.270 1 120.921 1 125.758 1 130.788 I 136.019 1 141.460 1 147.119 I 153.003 I 159,124 1 165,488 1 172,108 1 178,992 1 186,152 1 193.598 1 201.3421 209.396 1 217.772 1 226,482 I 235,542 I 244.963 11 SUPPLIES 14.000 15,0001 15,6001 16,2241 16,873 17,548 18.250 18.980 19.739 I 20.529 21.3501 22,204 23.092 1 24.0151 24.9761 25,9751 27,0141 28,095 29.219 I 30,3871 31.6031 12 OTHER SERVICES CHARGES 142,824 148,537 1 154,478 1 160,658 1 167,084 1 173,767 1 180,718 1 187,947 1 195,465 1 203,283 1 211,414 1 219,871 1 228,666 1 237,812 1 247,325 1 257,2181 267,507 1 278,207 1 289,335 1 300,9091 312,945 Total Operations 556,680 579,379 602,554 626,656 651,723 677,791 704,903 733,099 762,423 792,920 824,637 1 857,622 1 891,927 15 927,604 1 5 964,709 1 1,003,2971 5 1,043,429 1 1,085,16615 1,128,573 1 1,173,715 1 5 1,220,664 13 TOTAL EXPENDITURES 891,168 822,215 850,671 880,264 911,041 943,049 976,885 1,011,505 1,047,510 1,084,955 1,123,898 1 1,154,974 1 1,207,094 1 1,268,900 1 1,296,457 I 1,407,837 15 1,328,011 1 1,379,257 1 1,548,053 1 1,487,981 1 1,677,126 SUMMARY 10 -Year 1 15 -Year 1 1 20 -Year 1 4 TOTAL REVENUE 968,031 I 983,290 1,000,888 1,018,812 1,037,076 1,055,684 1,074,643 1,093,960 1,113,641 1,133,694 1,154,126 I 1,174,944 I 1,196,156 I 1,217,769 I 1,239,791 I 1,262,231 1 1,285,095 I 1,308,394 I 1,332,134 I 1,356,324 I 1,380,974 13 TOTAL EXPENDITURES 891,168 822,215 850,671 880,264 911,041 943,049 976,885 1,011,505 5 1,047,510 1,084,955 1,123,898 1,164,974 1,207,094 1,268,900 1,296,457 1,407,837 1,328,011 1,379,257 1,548,053 1,487,981 1,677,126 14 YEAR END BALANCE 76,863 1 161,074 150,215 138,548 126,035 112,635 97,758 82,455 66,131 48,739 30,2281 9,971 1 (10,938)1 (51,130)1 (56,666)1 (145,606)1 (42,915)1 (70,863)1 (215,919)1 (131,657)1 (296,152) W:VdnInhONmNIL1MIP01T.. Peal •MPO nwiwa 1 -13-I I LEASE mN LEASE W2011 WOO AM CIP PROJECTS 2011-2018 METROPOLITAN PARK DISTRICT ATTACHMENT B Draft Resolution 199 200 I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING AUGUST 16, 2011, AS THE DATE FOR AN ELECTION ON THE QUESTION OF THE FORMATION OF A TUKWILA POOL METROPOLITAN PARK DISTRICT WITHIN THE CITY OF TUKWILA TO GENERATE FUNDS FOR ACQUISITION, MAINTENANCE, OPERATION, AND /OR CAPITAL IMPROVEMENT /CONSTRUCTION EXPENDITURES FOR A POOL FACILITY WITHIN THE BOUNDARIES OF THE CITY OF TUKWILA. WHEREAS, RCW 35.61.010 provides that a Metropolitan Park District may be created for the management, control, improvement, maintenance, and acquisition of parks, parkways, boulevards, and recreational facilities; and a Metropolitan Park District may include territory located in all of one city, when created; and WHEREAS, the City of Tukwila currently owns, operates and maintains the City of Tukwila Pool (formerly known as the South Central Pool), hereafter referred to as "Tukwila Pool and WHEREAS, the City of Tukwila does not have the resources to continue to manage, maintain, and operate a pool; and WHEREAS, the Tukwila Pool provides a benefit to the citizens of Tukwila, serving our community as a multigenerational facility that provides health and recreation benefits to all ages, strengthens the community, and enhances the quality of life; and WHEREAS, the City of Tukwila and the Tukwila City Council strongly support the Tukwila Pool and believe it would be in the best interest of the community for its operation to continue; and WHEREAS, after consideration of various alternatives, the Tukwila City Council has recommended formation of the Tukwila Pool Metropolitan Park District, organized under Chapter 35.61 RCW, to acquire and operate the Tukwila Pool; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: W: \Word Processing \Resolutions \Tukwila Pool Metropolitan Park District Election.doc KM:bjs 2/23/11 Page 1 of 2 201 Section 1. An election shall be held within the City of Tukwila on Tuesday, August 16, 2011, for the purpose of submitting to the qualified City, for their ratification or rejection, a Resolution No. proposition creating the Tukwila Pool Metropolitan Park District. Section 2. The boundaries of the proposed Tukwila Pool Metropolitan Park District are coextensive with Tukwila city limits pursuant to Chapter 35.61 RCW. Section 3. The Director of Records and Elections of King County, Washington is requested to conduct this election on the August 16, 2011 ballot. Section 4. Pursuant to RCW 35.61.050(3), the Tukwila City Council is hereby designated to serve in an ex officio capacity as the board of commissioners for the Tukwila Pool Metropolitan Park District. Section 5. The City Clerk is directed to certify to the Director of Records and Elections of King County, Washington, by a date no later than May 24, 2011, a copy of this resolution and the proposition to be submitted at that election in the form of a ballot title as follows: PROPOSITION NO. XXXX FORMATION AND FUNDING OF TUKWILA POOL METROPOLITAN PARK DISTRICT Tukwila Resolution No. xxxx proposes creation of the Tukwila Pool Metropolitan Park District coextensive with the City's boundaries pursuant to 35.61 RCW, including the authority to levy a general tax on property within the District each year not to exceed 15 cents per thousand dollars of assessed valuation, for the purpose of acquiring and operating a pool facility. The Tukwila Pool Metropolitan Park District is to be governed by the City Council of the City of Tukwila, serving as the board of commissioners in an ex officio capacity. 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 W: \Word Processing \Resolutions \Tukwila Pool Metropolitan Park District Election.doc KM:bjs 2/23/11 Page 2 of 2 202 o (-1! 1C City of Tukwila Jim Haggerton, Mayor 0 f,; INFORMATIONAL MEMORANDUM TO: Tukwila City Council FROM: Jim Haggerton, Mayor Steve Lancaster, City Administrat DATE: June 21, 2010 SUBJECT: Options for Operating Tukwila Pool ISSUE The City of Tukwila owns and operates Tukwila Pool, located on land leased from the Tukwila School District. The City's lease with TSD expires on September 14, 2011. The City must determine whether it is feasible and in the community's best interests (from both a financial and a service standpoint) to extend the lease and continue to operate the pool beyond 2011. Key factors to consider in making this determination are: How important is continued operation of the pool to the community? How much does it cost today, and how much will it cost in the future to provide this service? Options to be considered include: A. Continue operating the pool as in recent years. B. Reduce program offerings and hours of operation to reduce costs. C. Modify fees to increase revenues. D. Some combination of options A, B and C. E. Contract with Third Party Operator F. Close Tukwila Pool at the end of the current lease. BACKGROUND In the early 1970's King County built the "South Central Pool" on property it leased from the South Central School District (since renamed and hereafter referenced as the Tukwila Pool and the Tukwila School District). In 2002, due to King County budget issues, the County indicated its intention to close the pool or, alternatively, turn it over to another entity to operate. The City of Tukwila agreed to assume responsibility for operating the pool, and King County transferred ownership of the pool and assigned its ground lease with TSD to the City in January 2003. At the same time, King County assumed full responsibility for operation, maintenance and ultimate replacement of the South Park Bridge, which responsibilities had previously been shared between the County and the City. The City contributed $3 million as its final obligation toward bridge operation, maintenance and replacement, and ceased paying annual operation and maintenance costs. 203 INFORMATIONAL MEMO Page 2 The City of Tukwila has operated the Tukwila Pool since 2003 on property owned by and leased from the Tukwila School District. The history of operating costs, capital costs and pool revenues is provided by Table 1. A cost breakdown and percentage of the operating budget can be found on Attachment A. Additionally, a Capital Improvement Project summary in Attachment B. TABLE 1 TUKWILA POOL COSTS AND REVENUES, 2003 -2009 Year Operating Cost 1 Capital Cost I Total Cost Revenue Net Cost 2003 388,052 1 9,593 397,645 169,949 (227,696) 2004 439,642 1 76,478 1 516,120 178,861 (337,259) 2005 466,912 1 39,572 I 506,484 190,952 (315,532) 2006 512,973 1 8,964 1 521,937 216,357 (305,580) 2007 549,450 I 10,091 1 559,541 192,106 (367,435) 2008 579,596 1 0 1 579,596 195,465 (384,131) 2009 633,964 1 0 I 633,964 192,206 (441,758) Average 510,084 I 20,671 1 530,755 190,842 (339,913) Annual pool operating costs increased by approximately 44% between 2004 and 2009, while operating revenue increased by approximately 7.5 in 2009, the general fund subsidy for operating the Tukwila Pool was $441,758. Programs at the City of Tukwila Pool focus on increasing water safety knowledge and enhancing a person's quality of life by providing opportunities for physical fitness, socialization, and emotional balance. Core programs at the pool include: swim lessons for all ages and skill levels, water aerobics, water walking, dive classes, lifeguard certification courses, lap swim, open swim, and family swim. The facility is also rented to groups for private functions such as pool parties, corporate training sessions, and several other unique pool uses (ex. kayak instruction, airline water rescue simulation). Additionally, high school swim teams and private swim league organizations rent the pool for swim practices. Table 2 indicates the total number of participants per program by year between 2003 and 2009. Table 2 TUKWILA POOL ATTENDANCE, 2003 -2009 Drop In Program Facility Membership Programs: Participation Rentals Passes lap swim, open Youth Swim Lessons private parties, high scanned swipes swim, family swim, school swim teams, water walking, private swim aerobics leagues Non Year Mixed Use Resident Resident Mixed Use Mixed Use Total 2003 18,148 8,409 1 9,108 1 30,313 1 13,930 79,908 2004 18,409 9,454 1 9,938 I 45,427 1 15,275 98,503 2005 19,277 8,917 I 12,547 1 56,886 15,851 113,478 2006 18,771 8,920 I 13,118 1 57,047 15,879 113,735 2007 16,295 8,521 1 12,781 1 42,677 1 14,323 94,597 2008 15,694 11,208 1 12,947 I 42,532 I 14,478 96,859 I 2009 14,493 11,267 I 12,807 I 56,815 1 14,234 1 109,616 W:\Stevel6UDGETTTukwila Pool Options 6 -21 -10 sjl.doc 6/21/2010 12:51:32 PM 204 INFORMATIONAL MEMO Page 3 Table 3 reflects resident vs. non resident use for youth swim lesson programs (does not include rental, membership and drop in users as data was not collected). Table 3 TUKWILA POOL SWIM LESSONS, 2003 -2009 Year Resident Visits Non- Resident Visits 1 2003 1 48.58% 51.42% 1 2004 48.75% 51.25% 2005 1 41.54% 58.46% 2006 40.48% 59.52% 2007 40.10% 59.90% 1 2008 46.40% 53.60% 2009 1 46.88% 53.12% Average 1 44.71% 55.32% ANALYSIS OF OPTIONS The following analysis is provided to assist the City in determining an appropriate course of action. There remains considerable uncertainty regarding several important issues bearing on this decision (including future lease rates, future operating costs, and the ability of customers to absorb fee increases). This analysis should be considered an "order of magnitude" assessment at this time. Option A Continue Operating Tukwila Pool as in Recent Years Three factors are important in understanding the financial implications of continuing to operate Tukwila Pool in a manner similar to recent years: 1. Extension of the current lease with Tukwila School District 2. Projected operating expenses 3. Projected capita! expenses 4. Projected revenue Extension of Lease. The City's lease with the Tukwila School District expires on September 14, 2011 (approximately 15 months from now). Preliminary discussions with regard to extension of the lease have been held with Tukwila School District representatives. The District indicates an extended lease must include lease payments reflecting the value of the property. The District contracted for an appraisal in early 2009 which estimated the land plus improvement value at $1,015,000 at that time. This value was discounted due to the remaining (at that time) 30 months on the City's $1 per year lease. Prior to applying this discount, the appraised value was estimated at $1,350,562 ($510,000 land value plus $840,562 improvements value). The City has requested but has not yet received a suggested future lease rate from the District. Proiected Operating Expenses Without changes in operations or fee structure, operating costs can be expected to continue to grow faster than revenues over the mid -to -long term. W:1Steve1BUDGET1Tukwila Pool Options 6 -21 -10 sji.doo 6/21/2010 12:51:32 PM 205 INFORMATIONAL MEMO Page 4 One notable change in near -term future operating expenses will be that the Pool Operator was reclassified effective in 2010 to a Project Coordinator which is budgeted out of the Department's Administration budget. Therefore, 0.75 FTE will be transferred to the Administration Budget for a cost savings of approximately $53,000 with salary and benefits annually for the Pool Budget. This transfer was accounted for in the Parks and Recreation Department Service Reduction Proposals presented to the City Council on May 24, 2010. The utility cost can be reduced with capital investments to the pool operating systems. For example, in December 2009, a three -way actuator valve for the pool air heating system was replaced. This $4,000 project has reduced our gas consumption by over $2,000 per month. Other operating cost can be reduced with similar Capital investments (See Table 4 below). The utilities are approximately 18% of the operating budget (see Attachment A for a cost and percentage pie chart of the Tukwila Pool operating budget). Projected Capital Expenses At City Council direction, the Pool has not made major Capital Improvements since the High Performance Coating, often referred as painting, in 2005. There are 13 projects listed in Table 4 that show how the City of Tukwila could invest in the Tukwila Pool to operate more efficiently. The list below indicates by priority what could be done to save annual operational cost by reducing utilities such as gas, electricity, water and sewer. TABLE 4 TUKWILA POOL POTENTIAL ENERGY EFFICIENT PROJECTS Project Minimum Maximum Life Estimated Recovery Grant Cost Cost Expec- Annual Years or fancy Savings Rebate 1 I Sewer Deduct Meter 0 1,000 N/A I 500 J 1 -2 yrs I N/A 2 I Pool Cover /Blanket 18,000 1 70,0DD 12 yrs 12,000 1 1 -2 yrs 1 50 -70% 3 HVAC Natatorium 3,000 1 7,500 10 yrs 235 -470 1 2 -8 yrs I Yes I 4 HVAC Lobby Supply 1,000 1 2,000 10 yrs 235 -470 1 2 -8 yrs I Yes 5 HVAC Lobby Exhaust 1,000 1 2,000 10 yrs 235 -470 2 -8 yrs I Yes 6 Building Heat Pump* 1,000 1 2,000 10 yrs 235 -470 1 2 -8 yrs Yes 7 Pool Heat Pump 1,000 2,000 10 yrs 25 -50 10+ yrs Yes 1 8 HVAC Controls /Dampers 40,000 90,000 40 yrs 8,000 15,000 3 -10 yrs I Maybe 9 Lighting Conversion 8,000 15,000 20 yrs 800 1 10 -20 yrs I Yes 10 Pool Recirculation Pump 3,000 7,500 10 yrs 500 -2,300 1 2 -10 yrs 1 Maybe 11 PVI Boiler Instantaneous 30,000 40,000 12 yrs 750 -5,000 6+ yrs I Maybe I 12 Commissioning 1,000 5,000 N/A N/A N/A 1 50% I 13 Solar Panels 47,000 90,000 12 yrs 12,000 15,000 1 4 -6 yrs I Maybe I Total $154,000 $334,000 1 1 1 VSD or Variable Speed Drive pump motor that doesn't have to run at 100% capacity if it is not needed. Implementing all of these investments could reduce average net annual costs by up to $50,000 over a ten year period. W:1Steve\BUDGET1Tukwila Pool Options 6 -21 -10 sjl.doc 6/21/2010 12:51:32 PM 206 INFORMATIONAL MEMO Page 5 There are a couple of projects that are necessary to extend the life and integrity of the Tukwila Pool. The current pool liner was installed in the early 1990's and its expected life is near the end. This project is identified in Project A below in Table 5 and would cost approximately $250,000 to $275,000. The Pool Filters, Project B below, are currently a Vacuum Diatomaceous Earth type of filter system. This is outdated and could be retrofitted to a High Rate Sand Filter type system that is more efficient, using Tess chemically treated and heated -pool water, and would reduce annual maintenance cost. TABLE 5 TUKWILA POOL POTENTIAL CAPITAL IMPROVEMENT PROJECTS Project Minimum Maximum Life Annual Recovery Grant or Cost Cost Expec- Savings Years Rebate tancy A 1 Pool Liner I 250,000* 1 275,000 1 15 yrs 1 Longevity 1 N/A Not likely 1 B Retrofit Filters 1 40,000 I 50,000 1 30 yrs 1 $4,000 1 10 -13 yrs Unknown 1 1 Total 1 $290,000 1 $325,000 1 1 1 Proiected Revenue The 2010 projected revenue for the Tukwila Pool is on target to exceed the current revenue goal of $205,000. The first five months of 2010 shows over a 5% increase in revenue as compared to the same months in 2009. If this growth is consistent throughout 2010, revenues should out perform the budget goal by more than $10,000. Summary Without changes in operations or fee structure, operating costs can be expected to continue to grow faster than revenues over the mid -to -long term. This growth in the cost/revenue gap will be slowed by the previously mentioned Project Coordinator reclassification (approximately $50,000 per year) and could be further slowed by some strategic investments in energy efficiency improvements (up to $50,000 per year with an up -front investment of $150,000 to $300,000). Additionally the City should anticipate investing approximately $300,000 in necessary capital improvements in the next few years. Option B Reduce Program Offerinas and Hours of Operation There are program offerings and hour reductions that could be implemented to reduce the Tukwila Pool operating budget. These are as follows: Cut open swims in the evening open swims cannot be combined with anything other fee generating programs because they use the entire pool. $5,700. o Cut out Friday night lap swim. This allows the pool to close at 1 pm Currently there are no lessons on Friday. $6,000. Close the Pool on Saturdays. $11,000 Reduce 0.75 $45,000 or 1.0 FTE $73,000 Transfer the 0.75 FTE Project Coordinator to the P. R Administration Budget reducing the Pool budget by $53,000 (as previously mentioned, this increased expense to the Administration budget is offset by other program reductions previously recommended to Council). W:1Steve\BUDGET\Tukwila Pool Options 6 -21 -10 sjl.doc 6/21/2010 12:51:32 PM 207 INFORMATIONAL MEMO Page 6 The proposed service reduction impacts may upset some pool patrons. However, Staff believes that patrons would be more accepting of fee increases than having the pool closed. Attachment D outlines the current and proposed revised pool operating hours as described above. Under this proposal the pool would be available for use 57.5 hours per week, a reduction of approximately 20% compared to the current 72 hours per week. A range for the cost reduction for this proposal is approximately $120,000 to $150,000 annually. Option C Modify Fees to Increase Revenues The pool fees could be modified to increase the revenues generated to pay for the operating cost of the Tukwila Pool. The proposed fees could increase the revenues by approximately $45,000. It may too much of an impact to raise the fees to the proposed amounts at one time. So, a graduated fee increase system would be recommended to reach the fee increase goal. The new revenue is based on the current users' numbers being the same as in 2009. If the higher fees make people not want to use the Tukwila Pool then revenue may not reach this new amount and could possibly be reduced. A price break point has not been established and further studies would need to be performed prior to implementing the proposed fee structure identified in Attachment E. Option D Combination of Options A. B and C This Option represents a "best case scenario," from a financial standpoint, of continuing City operation of the Tukwila Pool. It would have the following characteristics: Implement the most promising energy efficiency projects over a several year period (Cost: $150,000 to $335,000. Annual Savings: $35,000 to $50,000). Implement the Pool Liner and Pool Filters replacement projects (Cost: $290,000 to $325,000). O Reduce program offerings and hours of operation (Annual Savings: $120,000 to $150,000). o Modify fees (Annual Revenue Increase: up to $45,000). This best -case scenario would involve a one -time investment of approximately $440,000 to $660,000. If we borrowed this money, the annual debt service would be approximately $35,000 to $55,000 per year. Net operating costs could be reduced by approximately $155,000 to $200,000 per year, or $105,000 to $165,000 per year after debt service payments. Please note this does not include lease payments to the Tukwila School District at this point. These numbers may represent an optimistic view of continued City operation, and should the City decide to pursue this option, staff proposes to prepare a much more detailed analysis prior to a final decision. Option E Transfer Operating Responsibilities to a Third Party When King County divested itself of its community pools in 2002 -2003 a variety of arrangements were made for their continuing operation. Some, like Tukwila Pool, were transferred to cities; some to school districts. A few were transferred to private non profit organizations. For example, Mercer Island's Mary Wayte Pool is owned and operated by W:ISteve\BUDGET1Tukwila Pool Options 6 -21 -10 sjl.doc 6/21/2010 12:51:32 PM 208 INFORMATIONAL MEMO Page 7 Northwest Center, a non profit social service organization. The City of Mercer Island contributes $100,000 annually to the operation of Mary Wayte Pool, with the remaining costs borne by Northwest Center. Northwest Center also operated the Redmond Hartman pool (leased from the City of Redmond) until June 18 of this year but reports it has not been able to negotiate a favorable lease to continue this arrangement. The City could investigate the potential for finding a third party operator for Tukwila Pool. Alternatively the City could investigate assisting its residents to access alternative existing facilities and services. For example, the City of SeaTac provides a level of support to its residents allowing for decreased cost for City residents using the new YMCA facility on South 188 Street. Option F Close Tukwila Pool Fall of 2011 Under this option the City would cease operating Tukwila Pool and vacate the premises to the Tukwila School District no later than September 14, 2011. RECOMMENDATION Under the best case scenario for continued City operation of Tukwila Pool, the City will need to continue subsidizing pool operations by at least $250,000 to $300,000 per year or more, depending on negotiation of a new lease with the Tukwila School District and our success in controlling future operating costs. Based upon the City's current financial situation and our forecasts of future general fund expenses and revenue, continued operation of the Tukwila Pool would necessitate significant reductions elsewhere within the City's operating budget, on top of reductions already under consideration. Tukwila Pool has provided outstanding and important services to the residents of Tukwila and surrounding areas for over 35 years, first under King County operation and more recently under City operation. The City can no longe t afford to provide this service as it has since 2003. With regret, we recommend that the City plan for the closure of Tukwila Pool no later than September 2011. In the interim, staff will explore two options for providing some level of related services to Tukwila Residents. 1. Seek out a partner willing and able to operate Tukwila Pool under a new lease with the Tukwila School District. 2. Investigate options for providing Tukwila residents with access to alternative facilities at an affordable cost. ATTACHMENTS A. Tukwila Pool Operations Budget Breakdown. B. Tukwila Pool Completed CIP Projects C. Tukwila Pool Operations Budget Utilities D. Tukwila Pool Reduced Program Offerings and Hours of Operation E. Tukwila Pool Current and Proposed Fee Schedule W: \Steve \BUDGET1Tukwila Pool Options 6 -21 -10 sjidoc 6/21/2010 12:54:21 PM 209 ATTACHMENT A TUKWILA POOL OPERATIONS BUDGET BREAKDOWN CHART ATTACHMBENT B TUKWILA POOL COMPLETED CIP PROJECTS ATTACHMENT C TUKWILA POOL OPERATIONS BUDGET UTILITIES CHART ATTACHMENT D TUKWILA POOL REDUCED PROGRAM OFFERINGS AND HOURS OF OPERATION CHART ATTACHMENT E TUKWILA POOL CURRENT AND PROPOSED FEE SCHEDULE Community Affairs Parks Committee Minutes February 28, 2011— Paae 2 After a brief overview of the history of the plan process to date, Committee discussion ensued. Committee members ultimately recommended that public involvement in this project should include both meetings with individual stakeholders and with a stakeholder group (see options 1 and 2 as outlined under the Recommendations in the Committee agenda packet). Committee members did not express interest in reducing the scope of the project as outlined in option 3. Committee members acknowledged that previously, the Council did not desire the approach of meetings with individual stakeholders as described in option 1; however, given the time that has passed and other considerations, the Committee felt it would be worthwhile to revisit the option with the full Council. RECOMMENDATION MADE WITH UNANIMOUS APPROVAL. FORWARD TO MARCH 14 COW FOR DISCUSSION. C. Ballot Measure Special Election: Tukwila Pool Metropolitan Park District Per previous Council direction, staff presented a timeline and draft resolution requesting the King County Director of Elections call a special election on August 16, 2011, and place on the ballot a measure regarding the formation of and funding for a Tukwila Pool Metropolitan Park District. l Council originally considered calling a special election during the month of February 2011; however, a number of factors affected the ability to meet required timelines associated with the February deadline. Staff has prepared timeline requirements and estimated costs associated with placing the measure on the next available ballot which is August 16. Staff reported that the items such as levy rate and governance structure were derived from information provided in a memo from Rick Still, dated February 23, 2011. The memo is included in the Committee agenda packet for review. Vanessa Zapitul, Tukwila resident, spoke on behalf a citizen group that has expressed interest in the continued operation of the pool. Ms. Zapitul suggested the City consider a third party operator for the pool and alternate means of providing necessary staff. She stated that, regrettably, that the citizen group will not be able to support this process and /or a ballot measure if a third party is not considered. Committee members recognize that there are a number of factors involved with this ballot measure and continued operation of the pool facility. In consideration of such details, the Committee thought it may be in the best interest of the City Council to hold a work session to discuss these factors prior to making a decision on how to proceed. RECOMMEDATION TO HOLD A WORK SESSION PRIOR TO THE COUNCIL MAKING A DECISION. FORWARD TO MARCH 14 COW FOR DISCUSSION. D. Parks Recreation Events Calendar As an information only item, Rick Still reviewed a calendar of upcoming Parks Recreation events for the months of March and April with the Committee. INFORMATION ONLY. HI. MISCELLANEOUS Meeting adjourned at 6:09 p.m. Next meeting: Monday, March 14, 2011 5:00 p.m. Conference Room #3 Committee Chair Approval M utes KAM. Reviewed by NG and SL. 215 216