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HomeMy WebLinkAboutCOW 2015-05-11 COMPLETE AGENDA PACKETTukwila City Council Agenda in°° ❖ COMMITTEE OF THE WHOLE ❖ Jim Haggerton, Mayor Counci /members: • :" Joe Duffie • :" Dennis Robertson David Cline, City Administrator •:" Allan Ekberg • :" Verna Seal Kate Kruller, Council President •:" Kathy Hougardy • :" De'Sean Quinn Monday, May 11, 2015, 7:00 PM Tukwila City Hall Council Chambers 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE 2. SPECIAL State of the City's health care plan. Doug Evans, President, R.L. Evans Company. PRESENTATION 3. CITIZEN COMMENT At this time, you are invited to comment on items not included on this agenda (please limit your comments to five minutes per citizen). To comment on an item listed on this agenda, please save your comments until the issue is presented for discussion. 4. SPECIAL ISSUES a. An Interlocal Agreement with Valley View Sewer District. Pg.i b. A resolution regarding human trafficking. Pg.19 c. An update on the Washington Place development. Pg.27 5. REPORTS a. Mayor b. City Council c. Staff d. City Attorney e. Intergovernmental 6. MISCELLANEOUS 7. EXECUTIVE SESSION 8. ADJOURNMENT Tukwila City Hall is wheelchair accessible. Reasonable accommodations are available at public hearings with advance notice to the City Clerk's Office (206- 433 -1800 or TukwilaCityClerk @TukwilaWA.gov). This notice is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities. Tukwila Council meetings are audio /video taped. HOW TO TESTIFY If you would like to address the Council, please go to the podium and state your name and address clearly for the record. Please observe the basic riles of courtesy when speaking and limit your comments to five minutes. The Council appreciates hearing from citizens but may not be able to take immediate action on comments received until they are referred to a Committee or discussed under New Business. COUNCIL MEETINGS No Council meetings are scheduled on the 5th Monday of the month unless prior public notification is given. Regular Meetings - The Mayor, elected by the people to a four -year term, presides at all Regular Council Meetings held on the 1 st and 3rd Mondays of each month at 7:00 p.m. Official Council action in the form of formal motions, adopting of resolutions and passing of ordinances can only be taken at Regular Council meetings. Committee of the Whole Meetings - Council members are elected for a four -year term. The Council President is elected by the Council members to preside at all Committee of the Whole meetings for a one -year term. Committee of the Whole meetings are held the 2nd and 4th Mondays at 7:00 p.m. Issues discussed are forwarded to the Regular Council meeting for official action. GENERAL INFORMATION At each Council meeting citizens are given the opportunity to address the Council on items that are not included on the agenda during CITIZENS COMMENTS. Please limit your comments to 5 minutes. Special Meetings may be called at any time with proper public notice. Procedures followed are the same as those used in Regular Council meetings. Executive Sessions may be called to inform the Council of pending legal action, financial, or personnel matters. PUBLIC HEARINGS Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land -use laws, annexations, rezone requests, public safety issues, etc. Section 2.04.150 of the Tukwila Municipal Code states the following guidelines for Public Hearings: The proponent shall speak first and is allowed 15 minutes for a presentation. 2. The opponent is then allowed 15 minutes to make a presentation. Each side is then allowed 5 minutes for rebuttal. 4. Citizens who wish to address the Council may speak for 5 minutes each. No one may speak a second time until everyone wishing to speak has spoken. 5. After each speaker has spoken, the Council may question the speaker. Each speaker can respond to the question, but may not engage in further debate at this time. 6. After the Public Hearing is closed and during the Council meeting, the Council may choose to discuss the issue among themselves, or defer the discussion to a future Council meeting, without further public testimony. Council action may only be taken during Regular or Special Meetings. COUNCIL AGENDA SYNOPSIS ---------------------------- - - - - -- Initials Meetin Date Pre ared b Ma or's review Council review 05/11/15 BG ❑ Resolution Mtg Date ❑ Ordinance Mtg Date 05/18/15 BG ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ IT ❑ P&R ❑ Police ® PW SPONSOR'S This Interlocal Agreement with Tukwila and the Valley View Sewer District will allow Valley SUMMARY View Sewer District to plan and construct public sewers to serve the Loop Area. The Loop Area is bounded by S 160th St, 42nd Ave S, SR 518, and 51st Ave S. Prior to the construction of City's 42nd Ave S Phase III street improvement project, Valley View Sewer District intends to install a manhole and stub out a sewer in 42nd Ave S to serve the Loop Area. The installation of sewers would allow additional growth in the neighborhood. RI ,"VIEWED BY R COW Mtg. ❑ CA &P Cmte ❑ F &S Cmte ❑ Transportation Cmte ® Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 04 /28/15 COMMITTEE CHAIR: DENNIS ROBERTSON RECOMMENDATIONS: SPONSOR /ADMIN. Public Works Department COMMITTEE' Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: 402 SEWER FUND Comments: MTG. DATE RECORD OF COUNCIL ACTION 05/11/15 ITEM INFORMATION I-- -- E K�1I STAFF SPONSOR: BOB GIBERSON ORIGINAL, AGENDA DATE: 05/11/15 AGENDA ITEM TITLE Valley View Sewer District Area Transfer Interlocal Agreement for Valley View Sewer to Service the Loop Area CATEGORY ® Discussion Mtg Date 05/11/15 ® Motion Mtg Date 05/18/15 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ IT ❑ P&R ❑ Police ® PW SPONSOR'S This Interlocal Agreement with Tukwila and the Valley View Sewer District will allow Valley SUMMARY View Sewer District to plan and construct public sewers to serve the Loop Area. The Loop Area is bounded by S 160th St, 42nd Ave S, SR 518, and 51st Ave S. Prior to the construction of City's 42nd Ave S Phase III street improvement project, Valley View Sewer District intends to install a manhole and stub out a sewer in 42nd Ave S to serve the Loop Area. The installation of sewers would allow additional growth in the neighborhood. RI ,"VIEWED BY R COW Mtg. ❑ CA &P Cmte ❑ F &S Cmte ❑ Transportation Cmte ® Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 04 /28/15 COMMITTEE CHAIR: DENNIS ROBERTSON RECOMMENDATIONS: SPONSOR /ADMIN. Public Works Department COMMITTEE' Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: 402 SEWER FUND Comments: MTG. DATE RECORD OF COUNCIL ACTION 05/11/15 05/18/15 MTG. DATE ATTACHMENTS 05/11/15 Informational Memorandum dated 04/24/15 Interlocal Agreement with Valley View Sewer District Minutes from the Utilities Committee meeting of 04/28/15 05/18/15 2 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Utilities Committee FROM: Bob Giberson Public Works Director BY: Mike Cusick, Senior Program Manager DATE: April 24, 2015 SUBJECT: Valley View Sewer District Area Transfer Project No. 81240203 Interlocal Agreement for Valley View to Provide Sewer to the Loop ISSUE Approve the Interlocal Agreement between the City of Tukwila and Valley View Sewer District to provide sanitary sewer service to the Loop Area of the City of Tukwila. BACKGROUND The City's current Sewer Comprehensive Plan shows the City of Tukwila ultimately providing sanitary sewer to the Loop Area (see vicinity map). Due to the low priority of sanitary sewer for the Loop Area, the project is not listed in the current CIP. Valley View Sewer District has an existing 8" sewer line in 42nd Ave S serving a few properties near S 158th St and 42nd Ave S and along the south edge of the Loop Area. Some properties pump their sewage across a shallow 60" diameter Seattle Public Utilities water line to the Valley View sewer in S 160th St. If the City were to sewer the Loop Area there are two options; the first being a City of Tukwila sewer main traversing along the south edge of SR 518 ROW, in an Area of unstable soils, to an existing sewer main near Crystal Springs Park at great expense. The second option is to have the City of Tukwila install and own the sewers in the Loop Area and connect the sewer to the existing Valley View sewer in 42nd Ave S. At the present time there is no CIP sheet for this project. DISCUSSION The Loop Area is comprised of single family homes with on -site sewer systems sifting on large parcels of land that can be subdivided if public sewers were installed. The City budget does not include funds for the installation of public sewers to the Loop Area. The City is planning to reconstruct 42nd Ave S from Southcenter Blvd to S 1601h St in 2016. Prior to this project, Valley View will install a manhole and stub a pipe out of the pavement in 42nd Ave S that could serve the Loop Area. The Loop would then be served by Valley View Sewer District. The installation of sewers in this neighborhood allow for growth in an area located near the Sound Transit Light Rail Station. Valley View Sewer District is willing to plan and construct public sewers to serve the Loop Area, as long as the City supports the project. FISCAL IMPACT There will be no fiscal impact to the City from this Interlocal Agreement with Valley View Sewer District as the City has no sewer facilities to the Loop Area. RECOMMENDATION Council is being asked to approve the Interlocal Agreement between the City of Tukwila and Valley View Sewer District allowing Valley View to provide sanitary sewer service to the Loop Area in the City and consider this item at the May 11, 2015 Committee of the Whole Meeting and subsequent May 18 Regular Meeting. Attachments: Interlocal Agreement with Valley View Sewer District with Exhibits WAPW Eng1PROJECTSIA- SW ProjectsWalley View West Hill Sewer Transfer (81240203)1lnfo Memo Valley View Interlocal The Loop 042415 MPC gl- sb.docx 3 VALLEY VIEW SEWER DISTRICT AND CITY OF TUKWILA SEWER SERVICE AGREEMENT THIS AGREEMENT is made and entered into by and between VALLEY VIEW SEWER DISTRICT, King County, Washington ( "District ") and the CITY OF TUKWILA, Washington ( "City "), each a Washington municipal corporation (collectively the "Parties" and individually a "Party "). RECITALS A. The City, a non - charter code city operating under Title 35A RCW, and the District, a sewer district operating under Title 57 RCW, both own and operate sewer collection systems within their respective sewer service areas. B. Pursuant to RCW 35A.11.040, RCW 35.67.300, RCW 57.08.005(12), and Chapter 39.34 RCW, the Parties are authorized to cooperate with each other to provide sewer services in a manner that will best satisfy the geographic, planning, economic, financing and development interests of the Parties. C. An area of the City bounded generally by South 1601h Street, 42nd Avenue South, State Route 518, and 51St Avenue South, and commonly referred to as the loop area ( "Loop Area "), currently is not served by a public sewer system. The Loop Area is not within the boundaries of the District. D. Pursuant to RCW 57.08.005(5), the District is authorized to acquire, construct, maintain and operate sewer systems, both within the District and outside the District. Pursuant to this authority, the District has adopted a comprehensive plan that includes most of the Loop Area within its sewer service area. E. The City is designing and planning a street project on 42nd Avenue South, in the vicinity of the Loop Area, with construction anticipated in 2016. In conjunction with this street project, the District is designing and planning an eight -inch sewer pipe and a manhole, together with appurtenances, at approximately 42nd Avenue South and State Route 518 ( "District Project "). The District Project, combined with extensions and facilities, would provide sewer service to the Loop Area. In contrast, the nearest City manhole to the Loop Area is approximately 2,000 feet East of the Loop Area. F. The Loop Area is within the City's current Sewer Comprehensive Plan. However, construction of a sewer system in the Loop Area is a low priority for the City, as the native soils in the Loop Area are sufficient to infiltrate wastewater for a majority of the on -site sewer systems in the Loop Area. The City anticipates that several large lots within the Loop Area will be developed in the near future, before the City has constructed a sewer system in the Loop Area. 466038.3 ( 089539 10001 -1- El G. The District is willing to construct and install the District Project, and to investigate and plan for sewer service to the Loop Area, as long as the City supports the construction and installation of the District Project, authorizes the District to provide and control sewer service to the Loop Area, and authorizes the property owners who connect to the sewer system to become District customers. The City is willing to allow the District to construct, install and plan for a sewer system to serve the Loop Area, in order to facilitate development of the Loop Area and to eliminate on -site sewer systems, as necessary. The Parties desire to set forth in this Agreement the terms and conditions of such an arrangement and authorization. AGREEMENT In furtherance of the foregoing and in consideration of the following terms and conditions, the District and the City agree as follows: 1. District Construction of Sanitary Sewer Facilities. The District shall design and construct a sanitary sewer pipe and a manhole, together with appurtenances, as described on Exhibit A and as shown on Exhibit B ( "District Project "), in conjunction with the City street project for 42'd Avenue South ( "City Project "). The City Project is anticipated to be constructed in 2016. The City will process any permits and approvals for the District Project in a timely manner. 2. Designation of and Provider for Sewer Service Area. The District Project will allow for eventual sewer service to the area of land within the City described in Exhibit A and shown on Exhibit B ( "Loop Area "). After the District Board of Commissioners by resolution accepts the District Project, the District shall become the provider of sewer service for the Loop Area. 3. District as Sewer Service Provider. Upon becoming the provider of sewer service for the Loop Area, the District shall have the sole responsibility, power and authority to construct, condemn, purchase, acquire, maintain and operate the sewer system, together with any additions, extensions and betterments thereto. The District further shall have the sole responsibility, power and authority to fix, alter, regulate and control the charges and rates. Any District work in the City streets or right -of -way shall be subject to City ordinances, rules and regulations. After the District has become the provider of sewer service, property owners who connect to the sewer system shall be District customers, and shall be subject to all District laws and regulations. 4. Sewer Connection Ordinance. Upon request of the District, the City shall present to the Tukwila City Council an ordinance that requires the owners of property and buildings in the Loop Area to connect to the District's sewer system and to pay the District's sewer connection charges, in accordance with terms and conditions that are similar to Tukwila Ordinance No. 2007 at Exhibit C but that are established by the District. Effective Date. The effective date of this Agreement shall be the date on which 466038.3 1089539 10001 -2- 5 the last person of both Parties has executed this Agreement. The term of this Agreement shall be perpetual. 6. Amendment of Laws and Plans. As soon as reasonably possible following the District's becoming the sewer service provider for the Loop Area, the Parties shall amend their respective plans, ordinances, and resolutions that relate to the ownership, operation and maintenance of a sewer system in and sewer service for the Loop Area. The City shall support and approve any amendments to the District's comprehensive plan for the Loop Area. 7. Cooperation. The Parties shall cooperate with each other with regard to the District's issuance of permits and approvals for and contracts relating to construction of extensions and connections to the District's sanitary sewer system in the Loop Area, and the City's issuance of permits and approvals for development of property and construction of buildings and structures in the Loop Area. 8. District ULID's and District Annexation. The Parties acknowledge that the construction of the sewer system, or any portion thereof, for the Loop Area may involve the creation of a District utility local improvement district, and that the District lacks authority to form a utility local improvement district outside of its territory or boundaries. The City shall support any District proposed annexation of the Loop Area, or any portion thereof. Upon District annexation of the Loop Area, or portion thereof, the City shall support the District's formation of a utility local improvement district in the annexed area. 9. Dispute Resolution. The Parties shall first attempt to resolve a dispute by discussions among a City representative or representatives selected by the Mayor and a District representative or representatives selected by the President of the Board of Commissioners. If the discussions are not successful, the Parties shall engage in mediation within forty -five (45) days of termination of discussions, according to a process and before a mediator agreed upon by the Parties. The Parties shall not resolve a dispute by mandatory arbitration. The Parties reserve their rights to pursue any available Court remedies at any time after the conclusion of the mediation. 10. Records review. Upon three (3) business days notice, or upon notice agreed upon by the Parties, a Party shall have the right to inspect and copy, without charge, all records of the other Party relating to this Agreement or its subjects. 11. Indemnification. To the maximum extent permitted by law, each Party shall defend, indemnify and hold harmless the other Party, and all of its officers, officials, employees and volunteers, from any and all claims, injuries, damages, losses or suits, including attorney fees, arising out of or resulting from any negligent acts, errors, omissions of the indemnifying Party and its officers, officials, employees and volunteers in performing obligations under this Agreement. However, if any such injuries and damages to persons or property are caused by or result from the concurrent negligence of the District or its officers, officials, employees and volunteers, and the City or its officers, officials, employees and volunteers, each Party's obligation hereunder applies only to the extent of the negligence of such Party or its officers, 466038.3 1089539 10001 -3 N. officials, employees or volunteers. The foregoing indemnity is specifically and expressly intended to constitute a waiver of each Party's immunity under industrial insurance, Title 51 RCW, as respects the other Party only, and only to the extent necessary to provide the indemnified Party with a full and complete indemnity of claims made by the indemnitor's employees. This waiver has been mutually negotiated. This Section 10 shall survive the termination of this Agreement. 12. Notices. All notices and other communications under this Agreement shall be in writing by regular U.S. mail or certified mail, return receipt requested. If to the City, the notice shall be sent to: City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 -2544 Attention: Michael Cusick or to such other person or place as the City shall furnish to the District in writing. If to the District, the notice shall be sent to: Valley View Sewer District 3460 S. 148th Street, Suite 100 Seattle, WA 98168 Attention: Manager or to such other person or place as the District shall furnish to the City in writing. Notices shall be deemed given upon delivery or, if mailed, upon the earlier of actual receipt or three (3) business days after the date of mailing. 13. Waiver. Waiver of any default shall not be deemed to be a waiver of any subsequent default. Waiver of a breach of any provision of this Agreement shall not be deemed to be a waiver of any other or subsequent breach and shall not be construed to be a modification of the terms of this Agreement, unless stated to be such through written approval of the non - breaching Party and attachment of such written approval to this Agreement. 14. Severability. If any section or part of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, such action shall not affect the validity or enforceability of any other section or part of this Agreement, and the Parties agree to work in good faith to reform this Agreement to conform it to the Parties original intent. 15. Agreement Administration. The Parties do not by this Agreement create any separate legal or administrative entity. The City's Mayor, or designee, and the District's Manager, or designee, shall be responsible for the administration of this Agreement. The Parties 466038.3 1089539 1 0001 -4- 11 do not intend to jointly own any real or personal property as part of this undertaking. The Parties will work cooperatively together to further the intent and purpose of this Agreement. Pursuant to RCW 39.34.040, the City shall list this Agreement on the City's website. 16. Entire Agreement; Exhibits; Amendment. This Agreement contains the entire written agreement of the Parties and supersedes all prior discussions. The recitals and the Exhibits attached hereto are incorporated into this agreement as though fully set forth herein. This Agreement may be amended only in writing, signed by both Parties. 17. Successors. All of the provisions, conditions, regulations and requirements of this Agreement shall be binding upon the successors and assigns of the Parties. 18. No Third Party Rights. This Agreement is solely for the benefit of the Parties and gives no right to any other party or person. 19. No Joint Venture. No joint venture or partnership is formed as a result of this Agreement. No employees or agents of one Party or any of its contractors or subcontractors shall be deemed, or represent themselves to be, employees of the other Party. 20. Jurisdiction and Venue. This Agreement shall be interpreted in accordance with the laws of the State of Washington. The Superior Court of King County, Washington, shall have exclusive jurisdiction and venue over any legal action arising under this Agreement. 21. Prevailing Party Costs. If either Party incurs attorney fees, costs or other legal expenses to enforce the provisions of this Agreement against the other Party, all such fees, costs and expenses shall be recoverable by the prevailing Party. 22. Counterparts. This Agreement may be signed in counterparts and, if so signed, shall be deemed one integrated agreement. 23. Further Documents. The Mayor and the President of the Board of Commissioners, or their designees, are authorized to execute or furnish such documents as may be necessary to implement and consummate this Agreement and the actions, duties or responsibilities of this Agreement. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their authorized representatives. CITY OF TUKWILA VALLEY VIEW SEWER DISTRICT Mayor Board President Date: Date: 466038.3 1089539 10001 -5- i Attested to: City Clerk Approved as to form: City Attorney 466038.3 1089539 10001 w Attested to: Clerk to Board of Commissioners Approved as to form: Rod P. Kaseguma, District Attorney n E%i 10 EXHIBIT A Valley View Sewer District Tukwila Loop Boundary Description That portion of the Southeast Quarter of Section 22, Township 23 North, Range 4 East, W.M. lying southwesterly of the southwesterly margin of State Route No. 518, as shown on Sheet 7 and 8 of approved Washington State Department of Transportation Right of Way plans for State Route No. 518, Mile Post 0.39 to Mile Post 3. 10, Riverton Heights, State Route No. 509 to State Route No. 5, approved March 6, 1969. Except the East half of the Southeast Quarter of the Southeast Quarter of said Section 22. And Except Lot 64, Plat of Sunnydale Gardens Division No. 1, recorded in Volume 25 of Plats, Page 50, records of King County, Washington; And Except that portion of the South half of said Southeast Quarter of said Section 22 lying west of Lot 34 of said plat, and it's southerly extension to the south line of South 1581 Street; And Except Lots 107 through 109 in said plat of Sunnydale Gardens Division No. 1; And Except the North Half of South 160th Street; Together with that portion of Lot 106, of said plat, lying south of said southwesterly margin of said State Route No. 518. Situate in the City of Tukwila, County of King, State of Washington. 11 12 14 EXHIBIT C '� 1900 City of Tukwila Washington Ordinance No. 4"17 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUIM11 , WASHINGTON, ESTABLISHING SEWER CONNECTION REQUIREMENT'S FOR THE DUWAMISK AREA,; DEFINING SERVICE AREA BOUNDARIES; PROVIDING FOR SEVERABIISTY, AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, a sewer plan identifying seven residential and two commercial areas has been prepared with a prioritized construction schedule; and WHEREAS, the City of Tukwila has granted the Val Vue Sewer District the right to install and operate the sanitary sewer system for the Duwamish neighborhood; and WHEREAS, sewer lines meet Washington State Department of Ecology standards: and WFIEREAS, a Sewer Connection Charge will be paid at the time of connecting or before final building permit approval to the Val Vue Sewer District for new facilities; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWII.A, WASHINGTON, HEREBY ORDAINS AS FOLLOWS. Section I. Duwamish Sewer Connection Charges. Duwanush area homes - as spelled outby Section 2 of the ordinance, existing on November 30, 2002 - will be required to connect to the sewer and pay the associated connection charges if any portion of any building is situated within 250 feet of a sanitary sewer Ime or lateral, and d- a) septic or health problems are identified by icing County Health Department that require repair of the septic tank system, or b) the home changes ownership, or c) remodeling occurs, adding a bathroom or bedroom Section 2. Service Area Boundaries. The Duwamish service area is bordered by the Duwamish River on the north and the easy East Marginal Way South on the west; and Interurban Avenue South on the south, as shown on the map attached to this ordinance (Exhibit A). Section 4 Severability. V any section„ subsection, paragraph, sentence, clause or phrase of this ordnnanee or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent lunsdiction, such invalidity or unconstitutionality shall not affect the vandaty or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section d. Effective Date. This ordinance or a summmy thereof shall be published in the official newspaper of the City, and shall fake effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASi�TGTON, at a Regular Meeting thereof this , ,-�� of day of L!, . 2002. ATTEST /AUrRE TrICATBD: E Cantu, CMC, City Clerk APPROVED AS TO FORM SY: ffnce of�ity Attorney Steven NL Mullet, Mayor Filed with the City Cleric Passed by the City Council Published: Effective Date: Z Ordinance Number: 20030213002124.002 15 16 City of Tukwila • Utilities Committee UTILITIES COMMITTEE Meeting Minutes April 28, 2015 — 5:30 p.m. — Foster Conference Room, 6300 Building PRESENT Councilmembers: Dennis Robertson, Chair; De'Sean Quinn, Verna Seal Staff: Robin Tischmak, Pat Brodin, Frank Iriarte, Mike Cusick, Laurel Humphrey Guests: Frank Lavarato, Dorothy Wojciethowska, Zayo Group LLC CALL TO ORDER: Committee Chair Robertson called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Ordinance: Zavo Group LLC Franchise Staff is seeking Council approval of an ordinance to grant a franchise to Zayo Group LLC, for the operation and maintenance of its fiber optic system in the City right -of -way. Zayo provides bandwidth infrastructure solutions for the communications industry in the United States and Europe, specifically long haul fiber networks for carriers, financial services, healthcare, government and other business. Zayo's extensive fiber optic system was constructed through joint projects with 360 Networks, McLeodUSA Incorporated, and Williams Communications. The proposed franchise ordinance authorizes Zayo to occupy and use the right -of -way, does not grant any right, title or interest, and requires a $5,000 administrative fee from Zayo within 30 days of approval. UNANIMOUS APPROVAL. FORWARD TO MAY 5, 2015 REGULAR CONSENT AGENDA. B. Interlocal Agreement: Valley View Sewer District Staff is seeking Council approval of an interlocal agreement with Valley View Sewer District to allow Valley View to provide sanitary sewer service to the Loop Area in Tukwila. The Loop Area is that area in the City bounded generally by South 160th Street, 42nd Avenue South, State Route 518, and 51St Avenue South and it is not currently served by a public sewer system. While it is in the Sewer Comprehensive Plan, City - provided sewer service in this area has been a low priority and is not in the adopted CIP. In conjunction with the City's planned reconstruction of 42nd Avenue South from Southcenter Boulevard to South 160th Street, and because Valley View has an existing 8" sewer line in 42nd Avenue South, Valley View is willing to plan and construct public sewers to serve Loop Area if the City is supportive. Committee members asked clarifying questions and expressed support for this proposal. Because connection to public sewers has financial impacts to residents, they did request that the City participate in the communications effort and ensure that residents receive detailed and timely information about costs and the construction schedule. UNANIMOUS APPROVAL. FORWARD TO MAY 11, 2015 COMMITTEE OF THE WHOLE. I IN COUNCIL AGENDA S nifials Meetin ,g Date Prepared �y Ma ors review Council review 05/11/15 LH ❑ Resolution Mt g Date 05118115 ❑ Ordinance Mtg Date 05/18/15 LH [:] Other Mt g Date SPONSOR Council []Mayor ❑ HR ❑ DCD [].Finance [:].Fire ❑ IT ❑ P&R ❑ Police [:] PF SPONSOR'S This resolution is a formal expression of support for combating commercial sexual SUMMARY exploitation through comprehensive demand enforcement, deterrence and prevention and the "Buyer Beware" initiative in King County. REVIEWED BY ❑ cow Mtg. ❑ CA&P Cmte E F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 5/5/15 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. Council President and Committee Chair COMMIT`fEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDrrURj--zREQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 5/11/15 ITEM INFORMATION ITEM NO. M i W., ISTAFF SPONSOR: LAUREL HUMPHREY I OR1GINAi,AGENDADATE: 5/11/15 AGEINDA I'n-1,,,m TrI'1,E A resolution relating to combating commercial sexual exploitation. CATEGORY M Discussion Mtg Date 05111115 1:1 Motion Mt ,g Date ❑ Resolution Mt g Date 05118115 ❑ Ordinance Mtg Date ❑ Bid Award Mt g Date F-1 Public Hearing Mig Date [:] Other Mt g Date SPONSOR Council []Mayor ❑ HR ❑ DCD [].Finance [:].Fire ❑ IT ❑ P&R ❑ Police [:] PF SPONSOR'S This resolution is a formal expression of support for combating commercial sexual SUMMARY exploitation through comprehensive demand enforcement, deterrence and prevention and the "Buyer Beware" initiative in King County. REVIEWED BY ❑ cow Mtg. ❑ CA&P Cmte E F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 5/5/15 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. Council President and Committee Chair COMMIT`fEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDrrURj--zREQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 5/11/15 MTG. DATE ATTACHMENTS 5/11/15 Informational Memorandum dated 4/29/15 Resolution Minutes from the Finance and Safety Committee meeting of 5/5/15 5/18/15 W., 20 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Laurel Humphrey, Council Analyst DATE: April 29, 2015 SUBJECT: Resolution relating to Combating Commercial Sexual Exploitation ISSUE A resolution expressing support for combating commercial sexual exploitation through comprehensive demand enforcement, deterrence and prevention. BACKGROUND Law enforcement and service agencies nationwide have been partnering to increase emphasis on the demand side of prostitution and human trafficking, acknowledging that children and vulnerable adults should be considered victims of commercial sexual exploitation. "Buyer Beware," an initiative that is led by the Organization for Prostitution Survivors and the King County Prosecuting Attorney's Office, represents a partnership with Police and City Attorney Offices across King County to go after purchasers of sex and not their victims. Buyers drive the industry and prosecutors estimate that around 27,000 men in King County are soliciting sex online every day. The Buyer Beware initiative also includes components relating to public education and an intervention program available to men both convicted of this crime and self - referred. Participating community organizations include The Organization for Prostitution Survivors, Businesses Ending Slavery and Trafficking (BEST), Stolen Youth, and Seattle Against Slavery. Several King County cities have formally pledged support via a resolution such as this one. DISCUSSION The proposed resolution expresses support for law enforcement emphasis on deterring buyers of sex, evidence -based innovations in this approach, and the Buyer Beware initiative in King County. RECOMMENDATION The Committee is asked to approve the draft resolution and forward it to the May 11, 2015 Committee of the Whole and subsequent May 18, 2015 Regular Meeting. ATTACHMENTS Draft resolution 21 22 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RELATING TO COMBATING COMMERCIAL SEXUAL EXPLOITATION THROUGH COMPREHENSIVE DEMAND ENFORCEMENT, DETERRENCE AND PREVENTION. WHEREAS, the Tukwila City Council is committed to public safety and the health and well -being of its residents and visitors; and WHEREAS, commercial sexual exploitation and sex trafficking are significant threats to our community values and the safety and well -being of the children and vulnerable adults being exploited; and WHEREAS, hundreds of children in King County are at risk of being commercially sexually exploited each year; and WHEREAS, the rise of online advertising has increased the demand for commercial sex, which victimizes children as young as 11 years old; and WHEREAS, it is illegal to purchase sex in Tukwila, King County and the State of Washington, yet prostituted individuals have typically been arrested and prosecuted up to 10 times more frequently than buyers; and WHEREAS, there is a growing body of evidence that targeting sex buyers is a pragmatic, effective way to combat the commercial sex industry; and WHEREAS, doctors and health professionals assembled by the Institute of Medicine issued the 2013 report, "Confronting Commercial Sexual Exploitation and Sex Trafficking of Minors in the United States," which suggests "a particular emphasis on deterring demand "; and WHEREAS, the Tukwila City Council is committed to promoting a safe and healthy community, taking a strong position against human trafficking, and supporting efforts to combat trafficking and reduce commercial sexual exploitation; W: \Word Processing \Resolutions \To combat human trafficking 4 -27 -15 LH:bjs Page 1 of 2 23 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City of Tukwila will continue collaboration with our neighboring jurisdictions and our county, state and federal partners to combat commercial sexual exploitation of children and vulnerable adults in our region, and to mitigate the associated public safety, economic, and health risks to our City. Section 2. The City of Tukwila supports the partnership of the King County Prosecuting Attorney's Office and the Organization for Prostitution Survivors, and the "Buyer Beware" initiative to reduce the demand for commercial sex. Section 3. The City of Tukwila's anti - trafficking strategies will be survivor informed and comprehensive, holding sex buyers and traffickers accountable, while providing exit strategies and options for prostituted individuals. Section 4. The City of Tukwila supports and promotes a culture of intolerance toward the purchase of a vulnerable human being for sex. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2015. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Rachel B. Turpin, City Attorney W: \Word Processing \Resolutions \To combat human trafficking 4 -27 -15 LH:bjs 24 Kate Kruller, Council President Filed with the City Clerk: Passed by the City Council: Resolution Number: Page 2 of 2 Finance & Safety Committee Minutes May 5, 2015 - Page 2 or the general fund. Establishing a fee deferral program would require code amendment, and staff is seeking Council direction on this issue prior to the development of any draft ordinances. Committee members asked clarifying questions about the information presented. Committee Chair Hougardy asked Omar and Christine Lee for input, and they described the financial difficulties of a project like this in Tukwila, which has significantly lower rents than in Seattle and Bellevue. They assert that the hotel will be built but the residential aspect hangs in the balance. The Lees also shared a powerpoint presentation with graphic renderings and descriptions of amenities in the proposed development. Committee members stated continued enthusiasm for this project but acknowledged the importance of fairness, noting the City's inability to give special treatment to one developer. The Committee recommends that staff pursue the fee deferral proposal further and will share this recommendation with the Committee of the Whole. If there is consensus from the full Council, staff will develop the ordinances required and return to Committee. The Committee is not supportive of amending code or polices leading to the reduction of building and /or impact fees at this time. They requested additional City Attorney input into the developer's request for fee reductions. UNANIMOUS APPROVAL TO FORWARD DISCUSSION TO MAY 11, 2015 COMMITTEE OF THE WHOLE. B. Resolution: Expressing Support for Combatting Commercial Sexual Exploitation This Council- initiated resolution expresses support for combating commercial sexual exploitation through comprehensive demand enforcement, deterrence and prevention, as well as support for the "Buyer Beware" initiative led by the King County Prosecuting Attorney's Office. There is increasing emphasis by law enforcement and service agencies locally and nationally to combat trafficking and sexual exploitation by pursuing and deterring the buyers of sex and not punishing those children and vulnerable adults who are victimized by the industry. Buyer Beware is a partnership between law enforcement, attorney, and service organizations to make progress in this area via education and intervention programs. UNANIMOUS APPROVAL. FORWARD TO MAY 11, 2015 COMMITTEE OF THE WHOLE. III. MISCELLANEOUS Staff provided follow up to the April 7, 2015 meeting in which the Committee heard a request from the owners of ABC Towing for the City to look into its policies regarding the Police Department's contract with a Renton -based towing company. Their position was that sales tax on towing services is collected based on the location from which the truck is dispatched, and therefore the City would benefit from using a Tukwila company for this service. Staff was able to confirm that the current contract was established in 1998 and last amended in 2007. The City does not have a policy nor does state law require periodic contract rebidding for services. The Committee asked that the Police Department provide additional information regarding the current contract as well as the impacts that would occur if it were to be rebid. Meeting adjourned at 7:20 p.m. Next meeting: Tuesday, May 19, 2015 - 5:30 p.m. - Hazelnut Conference Room Committee Chair Approval Minutes by LH 25 26 COUNCIL AGENDA SYNOPSIS nitials Meefin ,g Date Prepared by Mayor's rev'iow Council xview 05/11/15 BM F-1 Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council Z Mayor E:].HR E:]DCD D.Finance E]Fire E]IT ❑ P&R ❑ Police ❑ PWI SPONSOR'S Update on the progress of the Washington Place development and a discussion about a SUMMARY program to allow deferral of some fees in the TOD area (west of the river) of Southcenter. REVIEWED BY El cow Mtg. ❑ CA&P Cmte Z F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 5/5/15 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. Mayor's Office, Economic Development Comm'T"'FE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: N/A Comments: NIA MTG. DATE RECORD OF COUNCIL ACTION 5/11/15 ITEM INFORMATION ITEM NO. — 1 4.C. 27 STAFF SPONSOR: BRANDON MILES ORIGINIU.AGENDADATE: 5/11/15 AGENDA ITEM TjTj..j-,, Washington Place Update and Fee Deferral CATEGORY Z Discussion Mtg Date 9/11/19 ❑ Motion Mtg Date F-1 Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council Z Mayor E:].HR E:]DCD D.Finance E]Fire E]IT ❑ P&R ❑ Police ❑ PWI SPONSOR'S Update on the progress of the Washington Place development and a discussion about a SUMMARY program to allow deferral of some fees in the TOD area (west of the river) of Southcenter. REVIEWED BY El cow Mtg. ❑ CA&P Cmte Z F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 5/5/15 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. Mayor's Office, Economic Development Comm'T"'FE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: N/A Comments: NIA MTG. DATE RECORD OF COUNCIL ACTION 5/11/15 MTG. DATE ATTACHMENTS 05/11/15 Informational Memorandum, dated April 24, 2015. Minutes from the Finance and Safety Committee meeting of 5/5/15 27 W. City of Tukwila Jim Haggerton, Mayor TO: Mayor Haggerton Finance and Safety FROM: Brandon J. Miles, Economic Development Liaison DATE: April 24, 2015 SUBJECT: Washington Place Development Building and Impact Fee Deferral ISSUE Proposed deferral of some development fees associated with the Washington Place Development, located at 223 Andover Park East (former Circuit City property). BACKGROUND The owners of 223 Andover Park East are proposing to the construct the City's first residential high rise. When constructed, the 19 -story building will be the tallest building between Seattle and Tacoma and will include multi - family units (apartments or condos) and a full service hotel. The project is located within the Transit Oriented Development area or TOD of the City's Southcenter District. The TOD is envisioned to be a high density area with amenities that encourage walking and development that benefits from the proximity to the Sounder Station located east of the Green River and the Metro Transit Center located along Andover Park West, adjacent to Southcenter Mall. Over the last two years the City has taken various actions regarding the Washington Place Development in order to encourage the project to move forward since it fits the vision of the area. Development Agreement and Amendment In March of 2013 the City executed a development agreement (DA) with South Center WA, LLC, the owners of the property. The City executed an amendment to the DA in June of 2014. The initial DA and amendment provided the following modifications to the City's development standards: • Height. Half of the site may have a building that exceeds the maximum height in the zone, up to 190 feet. • Open Space. The open space requirements for the project were reduced. Each residential unit is required to have at least 45 square feet and each hotel room is required to have 25 square feet of open space. Clarification was also provided on what the City would consider as open space. • Condominiums. The multi - family units must be constructed in a manner so that they can be converted to condominiums at a later date. This includes that each unit have its own, separate electrical meter. • Parking. The City reduced the minimum number of required parking stalls for the project. The property owner is required to operate a shuttle and have valet parking on the site. W Page 2 • Signage. The permitted size of wall signs on the building was increased; however, other types of signs, generally permitted on other types of buildings, were prohibited. • Residential Component. The project must include at least 250 residential units. The DA will expire at the end of 2015 if a building permit has not been issued for the building. Approval of Multi - Family Tax Exemption Ordinance In order to encourage residential development within the TOD, the City Council approved a multi - family tax exemption ordinance on December 1, 2014. As the Council may remember, multi - family exemptions are permitted under State law and are used in many cities in the State to encourage multi - family development. The multi - family tax exemption ordinance allows for a significant reduction in the property valuation of projects that include a multi - family component within the TOD (west of the River). For example, the City has estimated that in the first year after the project is constructed, the City's share of property taxes will be reduced from $240,000 to $75,000. The savings to the property owner will be much more dramatic because the reduction in property valuation reduces the property taxes paid to all agencies (Washington State, King County, City of Tukwila, and Tukwila School District). Note: that the Ordinance does not reduce the taxes already received from the property. It only delays the collection of additional property taxes associated with the residential development. The property tax exemption only applies to the residential component of the project. The hotel and commercial space would not be eligible for a reduction in value. Land Use Approvals and Construction Permits The City issued a SEPA Determination of Non - Significance (E14 -0003) on May 18, 2014. Design review approval was granted on May 23, 2014 (1-14- 0016). The property owner has requested modifications to the approved design review application (L14- 0055). A comment letter (via email) was provided to the applicant's representative on October 29. 2014 seeking additional information regarding the design review modification request. A demolition permit was issued on September 19, 2014. A foundation only permit for the new building is currently pending. DISCUSSION Economic Development staff has estimated that the project will be required to pay the City over $1.5 million in building and impact fees'. The City's Building Division estimates the total building construction costs at approximately $74 million, thus the permit fee represents approximately 1.8% of the total project costs. The collected building permit fees are used for plan review and inspection to support the City's oversight of construction standards in the City. Impact fees are used to fund capital projects related to expanding capacity for traffic, parks, and fire services. 1 This is an estimate only, based upon limited information available to the City. Final permit fees will be calculated once a complete building permit application is submitted to the City. Additionally, the $1.5 million does not include pass through fees, water connection fees, and other fees associated with other permits issued by the City. The fee amount is provided for discussion purposes only. 30 W:12015 Info MennosMashPlacefeeDeferral.doc INFORMATIONAL MEMO Page 3 During the July 2014 Council review of the DA, its one amendment, and the multi - family tax exemption there was discussion about what else could be done regarding development and impact fees related to the project. A residential high rise in the Southcenter area of the City is an unproven development type. Many residential housing developers have expressed reluctance to develop in the City's Urban Center because there are no existing rent comparisons on new apartments or condos in or near the TOD district, especially for an urban product. Without rent comparable, proposed projects appear risky and are hard to finance. This sentiment of housing developers is supported by the conclusion of a report that the City had commissioned in 2014 regarding the project. Heartland, LLC, hired by the City, concluded, "...even under optimistic circumstances, the project would not meet financial expectations of market based investors or lenders." [It should be noted that the developers for the project have indicated that they have secured funding through the Federal Government's foreign investor visa program (EB -5]. The proposed project has considerable upside for the City. If successful, the project could demonstrate that residential development can succeed in the City's Urban Center. The project could help jumpstart residential and mixed use development and make the City a viable alternative to Seattle and Bellevue for these types of developments. However, the developer for the project does have to deal with soil conditions that are not present in downtown Bellevue and most of downtown Seattle. Tukwila's Urban Center is located in an old floodplain and developers must bore below the flood sediment to reach bedrock for the footings. This adds additional costs for developers of tall buildings, such as the Washington Place building. Imaact Fee Clarification Staff has been examining ways to reduce the impact of the City's fees as applied to the project. In August of 2014, the City was able to clarify the traffic, parks, and fire impact fees required for the project. This resulted in a reduction of nearly $300,000 in the amount of impact fees due. This is not a waiver of impact fees. Under State law, and the City's ordinance enabling for the collection of impact fees, the City must provide a process to reduce fees on a project by project basis. The reduction is based on an objective review related to the specific impacts associated with the individual project. Examination of Further Fee Reductions The Washington Place owners have requested that building permit fees for the project be reduced. The estimated building permit fee for the project is just over $568,000. Payment of building permit fee is divided into two payments, one payment is due at submission of the building permit. This is known as the "plan check" fee. This payment is intended to cover the City's staff time in reviewing the plans and other documentations prior to the permit being issued. The next payment for the building permit comes at issuance of the building permit. This payment is intended to cover staff time associated with conducting inspections as the project is constructed 2. Additionally, the impact fees are collected at time of issuance of the building permit. 2 Staff time is during normal business hours. A project can request inspections at night or on the weekends, provided arrangements are made to cover the City's overtime costs. WA2015 Info Memos\WashPlacefeeDeferral.doc 31 INFORMATIONAL MEMO Page 4 The table below shows the estimated fees (building and impact only) for the Washington Place Project. Table 1, Estimated Building and Impact Fees for Washington Place Staff examined if there were ways to reduce the City's building permit fees. Fees collected from building permits are directed to the City's general fund and are used to compensate the City for the cost associated with operating construction inspection services (Building, Planning, Fire, and Public works), as well as expenses associated indirect costs (Finance, IT, fleet and facilities). Reducing fees would require that the City examine its revenue and costs associated with building permit administration and would have be done citywide, not for a specific project. The current building permit fees were adopted by the Council via resolution and apply uniformly across the City. Building permit fees and other land use fees were increased during the City's budget challenges with the recession. The goal of increasing the fees was to make construction services and current planning, "self- funded." There are no City policies that would allow for a reduction of building permit fees for one specific project. In order to reduce building permit fees the City would have to amend the resolutions that levy the fees. Staff does not believe that this should be done without a comprehensive look at the City's revenues and costs. The owners of Washington Place project have suggested that the City enact lower fees in the TOD area of the TUC as a way to encourage residential development. While this is an innovative idea, staff is unsure if reducing fees in one area of the city would be legal (gifting of public funds). Even if it were legal, the City would have to consider the policy implications of allowing lower fees in one area of the City, while charging higher fees in another area. As mentioned above, impact fees will be collected from the project at time of issuance of the building permit. Impact fees are used by the City to pay for the construction of capital projects that increase capacity for roads, parks, and fire services. Some of the impact fees collected for this project will be used to pay for relocating Fire Station 51, the construction of the pedestrian bridge over the Green River, and for various traffic improvements in the Southcenter area. Under State law, waiving impact fees for an individual project requires that the City makes up the difference in the funds not collected. If the City wanted to reduce the impact fees for Washington Place it would have to enact reductions citywide. This is something that would require significant study and research, not something that could be accomplished in the next few months. Staff does not recommended that the City reduce building or impact fees for the Washington Place project for the reasons outlined above. Changes to the City's various fee ordinances should only be made after careful consideration of the City's revenue streams and cost of services. This would require a considerable amount of staff time and time by the City Council in reviewing the final results. WA2015 Info MemosMashPlacefeeDeferral.doc 32 Due at Application: Due at Issuance: Building Fee $217,316 $351,050 Traffic Impact $0.00 $48,894 Park Impact $0.00 $338,326 Fire Impact $0.00 $308,656 Total: $217,066 $1,046,926 Staff examined if there were ways to reduce the City's building permit fees. Fees collected from building permits are directed to the City's general fund and are used to compensate the City for the cost associated with operating construction inspection services (Building, Planning, Fire, and Public works), as well as expenses associated indirect costs (Finance, IT, fleet and facilities). Reducing fees would require that the City examine its revenue and costs associated with building permit administration and would have be done citywide, not for a specific project. The current building permit fees were adopted by the Council via resolution and apply uniformly across the City. Building permit fees and other land use fees were increased during the City's budget challenges with the recession. The goal of increasing the fees was to make construction services and current planning, "self- funded." There are no City policies that would allow for a reduction of building permit fees for one specific project. In order to reduce building permit fees the City would have to amend the resolutions that levy the fees. Staff does not believe that this should be done without a comprehensive look at the City's revenues and costs. The owners of Washington Place project have suggested that the City enact lower fees in the TOD area of the TUC as a way to encourage residential development. While this is an innovative idea, staff is unsure if reducing fees in one area of the city would be legal (gifting of public funds). Even if it were legal, the City would have to consider the policy implications of allowing lower fees in one area of the City, while charging higher fees in another area. As mentioned above, impact fees will be collected from the project at time of issuance of the building permit. Impact fees are used by the City to pay for the construction of capital projects that increase capacity for roads, parks, and fire services. Some of the impact fees collected for this project will be used to pay for relocating Fire Station 51, the construction of the pedestrian bridge over the Green River, and for various traffic improvements in the Southcenter area. Under State law, waiving impact fees for an individual project requires that the City makes up the difference in the funds not collected. If the City wanted to reduce the impact fees for Washington Place it would have to enact reductions citywide. This is something that would require significant study and research, not something that could be accomplished in the next few months. Staff does not recommended that the City reduce building or impact fees for the Washington Place project for the reasons outlined above. Changes to the City's various fee ordinances should only be made after careful consideration of the City's revenue streams and cost of services. This would require a considerable amount of staff time and time by the City Council in reviewing the final results. WA2015 Info MemosMashPlacefeeDeferral.doc 32 INFORMATIONAL MEMO Page 5 Fee Deferral Economic Development staff has examined the feasibility of deferring fees from being collected for the project. A fee deferral is not a fee reduction or waiver, but involves simply delaying the collection of fees. Several cities, such as Olympia and Sammamish allow for fee deferrals'. Developers often express concerns with the timing of cash outlays that are required for construction projects. A developer expends considerable cash to move a construction project forward prior to generating any rent or income from a project. For example, Washington Place will likely require two years of construction before it is open and able to start collecting rent from tenants and the hotel. A fee deferral shifts the fees due into the future and thus allows the developer to be closer to generating income before paying the fees. Since the City desires to see residential development in the TOD area, a fee deferral program could provide an incentive to assist developers in moving construction projects forward. If structured correctly, staff believes that a fee deferral program would be consistent with State Law. The following outlines general eligibility requirements and terms for how a fee deferral program could work. Eligibility requirements: 1. The project must be located within the Tukwila Urban Center's Transit Oriented Development district and west of the Green River. 2. The project must include at least 100 residential units and more than 50% of the net leasable area must be used for residential purposes. 3. The property owner of the project must execute an agreement with the City. Terms that would apply to any eligible fee deferral: 1. The building permit fee that is normally due at issuance, for the entire project, may be deferred for up to two years and must be paid before the City will issue a certificate of occupancy. 2. Development impact fees, collected by the City, for the entire project may be deferred and paid in equal, annual installments over eight years. The first payment is due within 36 months from the issuance of the first building permit. 3. The plan check fee and other land use, fire, and development fees will not be deferred and will be due according to standard City policy4. 4. The City will provide a non - binding estimate of the amount of fees (building and impact fee only) to be deferred after the City receives a complete building permit application. Any fee not listed in the non - binding estimate is not part of the fee deferral and shall be paid according to City policy. 5. The City will approve the amount of fees to be deferred when it is ready to issue a building permit. 6. Interest on the fees deferred will accrue from the date the building permit is issued. 7. Interest will be based on the stated rate for a 10 -Year US Treasury Bond on the date of permit issuance. Interest will be compounded annually. 8. The fee deferral will be secured with a revolving letter of credit for the outstanding fees, plus interest from a financial institution approved by the City. s The fee amounts deferred are very minor, with payment required prior to certificate of occupancy. 4 As discussed above, plan check fee is due at building permit submission. W:12015 Info MemosMashPlacefeeDeferral.doc 33 INFORMATIONAL MEMO Page 6 9. The financial institution must notify the City at least 30 days prior to the expiration or termination of the letter of credit. City may exercise the letter of credit for the total outstanding fees plus interest if the applicant does not provide another letter of credit satisfactory to the City at least 15 days prior to the expiration or termination of the letter of credit. 10. The City will have the right to exercise the letter of credit for the total outstanding fees plus interest if the applicant misses a payment. 11. The City may record the agreement against the property and the agreement will run with the land until fully paid. Table 2: Fee Deferral Payment Schedule as applied to Washington Place (Building and Impact Fees Only).' Paid at Time of: Year Permit Permit Certificate 2018 2019 2020 2021 2022 2023 2024 2025 Application Issuance of Occupancy 2015 2015 2017 $133,091 $0.00 $364,519 $97,508 $97,508 $97,508 $97,508 $97,508$97,508 $97,508 $97,508 A fee deferral program would not have an impact on the City's ability to move ahead with capital projects funded by impact fees. The City's collection of impact fees has been slower than anticipated. Many of the projects funded primarily or partially with impact fees will move forward regardless of when the City has collected the budgeted impact fee amount or not. In the absence of grant funds, these project will be funded by the City with either bonds and /or having the general fund front the funds. Impact fees will simply payback the city for any funds that were advanced via bonds or the city's general fund. Some projects funded by impact fees are not even scheduled to move forward until after 2020. For example relocation of Fire Station #51 is budgeted to receive $331,000 in impact fees; however, construction of the fire station is currently scheduled to occur after 2020. One advantage of a fee deferral program for impact fees is that it delays starting the clock on the ten year expenditure requirement. Under State Law the city must use collected impact fees within ten years of when they were collected6. If they are not expended the City must return the funds, with interest. The ten year period does not start until the City collects the funds. Thus, by deferring the fees the City delays the starting date of the ten year period and also aligns the funds being received more closely with our expenditure outlays. Staff is proposing that a nominal interest rate be charged to the fees that are deferred. The interest rate standard proposed by staff is the rate on a US Ten Year Treasury Note at the time of issuance of the building permit'. Staff believes that this interest rate standard would cover the opportunity cost of lost revenue by delaying collection of the fees. 5 This table is provided for discussion purposes only and is not meant to be a final representation of the payment schedule. 6 Using the funds is very open and could include purchasing land, completing studies, or designing the capital project. On April 20`h the stated interest rate was 1.90 %. 34 W.\2015 Info Memos\WashPlacefeeDeferral.doc INFORMATIONAL MEMO Page 7 FINANCIAL IMPACT One possible financial impact would occur if the City moves ahead with construction projects that were funded with impact fees by securing funds with bonds. If the City's borrowing costs are higher than the interest that is charged on the deferred fees the City could incur a cost. However, this cost is only incurred if one assumes that the project would move forward without the deferral of fees. If Washington Place is not constructed the city would still incur bond costs associated with capital projects. RECOMMENDATION Staff does not recommend that the City reduce or eliminate building or impact fees. As discussed above, such a reduction would require careful review of the impacts to the City's general fund. Staff recommends that the City create a fee deferral program within the TOD area of the TUC to encourage residential housing. Staff's goal at this time is to discuss the fee deferral with Council and solicit feedback, with an Ordinance being presented to Finance and Safety in May. WA2015 Info MemosMashPlacefeeDeferral.doc 35 36 City of Tukwila • Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes May 5, 2015 — 5:30 p.m.; Hazelnut Conference Room PRESENT Councilmembers: Kathy Hougardy, Chair; Joe Duffie, De'Sean Quinn Staff: Derek Speck, Brandon Miles, Laurel Humphrey Guests: Christine and Omar Lee CALL TO ORDER: Committee Chair Hougardy called the meeting to order at 5:35 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Washington Place Development Staff provided an update regarding the request from Omar and Christine Lee that the City reduce or defer fees and taxes for their mixed -use development project at 223 Andover Park East known as Washington Place. The project is viewed by the City as an excellent fit for the vision of the Transit Oriented Development (TOD) area and several significant City actions have been completed to encourage its progress, including modifications to development standards as reflected in an amended development agreement, approval of multi - family tax exemption within the TOD, and various land use and construction permit approvals. The development agreement expires at the end of 2015 if a building permit is not issued. Staff has estimated that over $1.5 million in building and impact fees will be required from this project under normal circumstances, and the developers have asked if there are ways to reduce this amount. Staff summarized the fee - related issues as follows: Building Permit Fees: Building permit fees go into the City's general fund and are used to support construction related services and indirect costs, applied to all projects uniformly. Building fees are adopted by Council resolution and staff does not have the authority to reduce or waive them. Impact Fees: Impact fees are used to fund capital projects related to expanding capacity for traffic, parks and fire services, and staff has authority to adjust these fees on a case by case basis. Following objective analysis in August 2014, a reduction of nearly $300,000 in impact fees was determined to be applicable to this project, and a second round of analysis is currently underway since this is a new type of development for the City. If the Council desired to amend code or policies leading to a reduction of building and /or impact fees for this project, these reductions would have to be applied City -wide. Analysis leading to this type of amendment would require considerable staff time and Council review. Fee Deferral: A fee deferral program is an option that allows developers to pay certain fees, normally due upon permit issuance, closer to the time when revenues can be collected from the project. A fee deferral program in the TOD is consistent with State law and could provide an incentive for further development consistent with the City's goals in that area. Several potential requirements and terms as described in the info memo were reviewed for the committee. Deferral of impact fees would not impact the City's ability to move forward with capital projects funded by these fees but instead reimburse the City for funds paid via bonds rGyA Finance & Safety Committee Minutes May 5, 2015 - Page 2 or the general fund. Establishing a fee deferral program would require code amendment, and staff is seeking Council direction on this issue prior to the development of any draft ordinances. Committee members asked clarifying questions about the information presented. Committee Chair Hougardy asked Omar and Christine Lee for input, and they described the financial difficulties of a project like this in Tukwila, which has significantly lower rents than in Seattle and Bellevue. They assert that the hotel will be built but the residential aspect hangs in the balance. The Lees also shared a powerpoint presentation with graphic renderings and descriptions of amenities in the proposed development. Committee members stated continued enthusiasm for this project but acknowledged the importance of fairness, noting the City's inability to give special treatment to one developer. The Committee recommends that staff pursue the fee deferral proposal further and will share this recommendation with the Committee of the Whole. If there is consensus from the full Council, staff will develop the ordinances required and return to Committee. The Committee is not supportive of amending code or polices leading to the reduction of building and /or impact fees at this time. They requested additional City Attorney input into the developer's request for fee reductions. UNANIMOUS APPROVAL TO FORWARD DISCUSSION TO MAY 11, 2015 COMMITTEE OF THE WHOLE. B. Resolution: Expressing Support for Combatting Commercial Sexual Exploitation This Council- initiated resolution expresses support for combating commercial sexual exploitation through comprehensive demand enforcement, deterrence and prevention, as well as support for the "Buyer Beware" initiative led by the King County Prosecuting Attorney's Office. There is increasing emphasis by law enforcement and service agencies locally and nationally to combat trafficking and sexual exploitation by pursuing and deterring the buyers of sex and not punishing those children and vulnerable adults who are victimized by the industry. Buyer Beware is a partnership between law enforcement, attorney, and service organizations to make progress in this area via education and intervention programs. UNANIMOUS APPROVAL. FORWARD TO MAY 11, 2015 COMMITTEE OF THE WHOLE. III. MISCELLANEOUS Staff provided follow up to the April 7, 2015 meeting in which the Committee heard a request from the owners of ABC Towing for the City to look into its policies regarding the Police Department's contract with a Renton -based towing company. Their position was that sales tax on towing services is collected based on the location from which the truck is dispatched, and therefore the City would benefit from using a Tukwila company for this service. Staff was able to confirm that the current contract was established in 1998 and last amended in 2007. The City does not have a policy nor does state law require periodic contract rebidding for services. The Committee asked that the Police Department provide additional information regarding the current contract as well as the impacts that would occur if it were to be rebid. Meeting adjourned at 7:20 p.m. Next meeting: Tuesday, May 19, 2015 - 5:30 p.m. - Hazelnut Conference Room Committee Chair Approval Minutes by LH i Upcoming Meetings & Events May 2015 11th (Monday) 12th (Tuesday) 13th (Wednesday) 14th (Thursday)- 15th (Friday) 16th (Saturday) ➢ Community ➢ Utilities Cmte, ➢ Regional Fire ➢ Equity & Candidate filing 2015 Tukwila Affairs & 5:30 PM Authority Diversity deadline Recycling Parks Cmte, (Foster Annexation Commission, (4:30 PM) Collection Event 5:30 PM Conference Steering 5:15 PM For more and Rain (Hazelnut Room) Committee RESCHEDULED information visit Barrel/Compost Conference 5:30 -7:30 PM FRoM 5/7/15 www.kin cg ount_v. Bin Sale gov /elections /aspx. Room) (Fire Station 51, (Hazelnut 9:00 AM to 3:00 PM ➢ Joint City 444 Andover Park Conference Foster High School Council/ East) Room) 4242 S. 144 " St.. ➢ City Council Executive Staff Rain barrels are $25 Committee of Work Session. ➢ COPCAB, each, cash only. the Whole 6:00 PM For additional Mtg., (Council 6:30 PM information visit: 7:00 PM Chambers) (Hazelnut www.tukwilawa.Qov or 206 - 431 -3683. (Council Conference Chambers) room — 6200 ➢ Tukwila Southcenter Blvd) Duwamish Hill International Preserve event Boulevard 10:00 AM — 1:00 PM Action Cmte, (3800 South 115` 7:00 PM Street) (Valley View forterra.orglevents Sewer Dist. for information & 3460 S 1481h) registration. 18th (Monday) 19th (Tuesday) 20th (Wednesday) 21st (Thursday) 22nd (Friday) 23rd (Saturday) ➢ Transportation ➢ Finance & ➢Public Open House ➢ Planning SilverSneakers Cmte, Safety Cmte, on the Tukwila Commission, Open House 5:15 PM 5:30 PM Int'l Blvd. District Work Session 9:00 AM (Foster (Hazelnut and Housing and Tukwila (Community Center) Conference Conference Neighborhoods International Learn about the Room) Room) Sections of the Boulevard nations leading Comprehensive Element Medicare exercise Plan. 6:30 PM program for older Drop in between (6300 adults. ➢ City Council 4:30 -6:30 PM Southcenter Regular Mtg., (Valley View Blvd — Rainier 7:00 PM Sewer Dist. Room) (Council 3460 S. 14e St) Chambers) ➢ Tukwila ➢ Park Commission, Historical 5:30 PM Society, (Community 7:00 PM Center) (Tukwila Heritage & Cultural Citizen's Academy Center, Graduation Ave S) 59 S.) 6:30 PM (Council Chambers ➢ Arts Commission: I st Tues., 5:00 PM, Tukwila Community Center. Contact Stephanie Gardner at 206 - 767 -2342. ➢ Civil Service Commission: 1st Mon., 5:00 PM, Hazelnut Conf. Room. Contact Kim Gilman at 206- 431 -2187. ➢ Community Affairs & Parks Committee: 2nd & 4th Mon., 5:30 PM, Hazelnut Conf. Room (A) The 2016 Community Development Block Grant (CDBG) application. (B) Duwamish Gardens —Bid award and Grant acceptance). (C) An update on the North Highline Annexation Area. (D) A contract for inspection services. ➢COPCAB (Community Oriented Policing Citizens Adv. Board): 2nd Thurs., 6:30 PM, Duwamish Conference Room. Contact Chris Partman at 206 - 431 -2197. ➢ Equity & Diversity Commission: I st Thurs., 5:15 PM, Hazelnut Conf Room. Contact Joyce Trantina at 206- 433 -1868. ➢ Finance & Safety Committee: 1 st & 3rd Tues., 5:30 PM, Hazelnut Conf. Room. ➢ Library Advisory Board: 1st Tues., 7:00 PM, Community Center. Contact Tracy Gallaway at 206- 767 -2305. ➢Park Commission: 3rd Wed., 5:30 PM, Community Center. Contact Dave Johnson at 206 - 767 -2308. ➢Transportation Committee: 1st & 3rd Mon., 5:15 PM, Foster Conf. Room ➢Tukwila Historical Society: 3rd Thurs., 7:00 PM, Tukwila Heritage & Cultural Center, 14475 59'h Avenue S. Contact Joan Hernandez at 206 -248 -0260. ➢Tukwila Int'l. Blvd. Action Cmte: 2nd Tues., 7:00 PM, Valley View Sewer District. Contact Chief Villa at 206- 433 -1815. ➢ Utilities Committee: 2nd & 4th Tues., 5:30 PM, Foster Conf. Room. (A) Duwamish Gardens Grant Amendment —Recreation and Conservation Office. (B) Duwamish Gardens Bid Award. (C) CBD Sanitary Sewer Rehab — APW to APE Sewer Repair Change Order No. 3. (D) CBD Sanitary Sewer Rehabilitation — Construction Project Completion and Acceptance. W Tentative Agenda Schedule May 14 I11 118 126 (Tuesday) June nil 1 Special Presentation: Acknowledge scholarship recipients. Unfinished Business: NRC Lease Renewal. See agenda packet cover sheet for this week's agenda (May 112015 Committee of the Whole Meeting). 8 Special Presentation: Update of the implementation of the Shoreline Master Plan. Special Presentation: - Mayor's State of the City. - Sustainable Airport Master Plan Update. Proclamations/ Appointments: National Public Works Week and Emergency Medical Services Week. Unfinished Business: - Authorize the Mayor to sign an Interlocal Agreement with Valley View Sewer District for sanitary sewer services for the Loop Area of the city. -A resolution relating to combating commercial sexual exploitation through comprehensive demand enforcement, deterrence and prevention. 15 Special Presentation: Recognition of Memorial Day to include Proclamation, song, color guard and remarks. Special Issues: -Land Conservation and Local Infrastructure Program Feasibility Analysis. - Discussion and consensus on Sound Cities Association Public Issues Committee (SCA PIC) Items. 22 Special Issues: Discussion and consensus on Sound Cities Association Public Issues Committee (SCA PIC) Items. Committee of the Whole meeting to be followed by Special Meeting.