HomeMy WebLinkAbout2015-05-26 Committee of the Whole MinutesTukwila City Council Committee of the Whole Meeting
City Hall Council Chambers May 26, 2015 — 7:00 P.M.
MINUTES
COMMITTEE OF THE WHOLE
CALL TO ORDER / RAISING OF COLORS (COLOR GUARD) / PLEDGE OF ALLEGIANCE
Council President Kruller called the Tukwila City Council meeting to order at 7:02 p.m. A color guard of
Foster High School students presented the flags and led the audience in the Pledge of Allegiance. The
students were Tahnie Johnson, Jordan Penor, Mikayla Kato and Sabrina Fontejon. They were
accompanied by Devlin Johnson of the United States Coast Guard.
OFFICIALS
Present were Kate Kruller, Council President; Councilmembers Joe Duffie, Dennis Robertson, Allan
Ekberg, Verna Seal, Kathy Hougardy, De'Sean Quinn.
CITY OFFICIALS
Jim Haggerton, Mayor; Rick Still, Parks and Recreation Director; Jack Pace, Community Development
Director; Jerry Hight, Building Official; Lynn Miranda, Senior Planner; Laurel Humphrey, Council Analyst;
Barbara Saxton, Administrative Support Coordinator.
SPECIAL PRESENTATIONS
a. Recognition of Memorial Day.
Following the Pledge of Allegiance, Joyce Trantina from the Mayor's Office sang "America the Beautiful."
Council President Kruller asked all veterans in attendance and those who were currently serving to
remain standing to receive acknowledgement of their service from the audience.
Mayor Haggerton read a proclamation for Memorial Day, proclaiming a moment of silence to honor and
remember those who gave their lives in service to this country and in defense of the freedoms that we
enjoy.
The Council and audience observed a moment of silence in remembrance.
Councilmember Duffie thanked all those in the audience for attending this evening as the City honors
veterans, the country's fallen soldiers, those who are currently serving and their families.
The Council expressed appreciation to Councilmember Duffie for initiating this evening's ceremony.
b. Update on AileyCamp. Vicky Lee, Education Director, and Shawn Roberts,
Dance for Parkinson's Coordinator, Seattle Theatre Group
Rick Still, Parks and Recreation Director; explained the City is developing a great partnership with Seattle
Theatre Group (STG) to bring an AileyCamp to the Tukwila Community Center. He introduced STG staff
in attendance: Josh LaBelle, Executive Director of Seattle Theatre Group; Maura Ahearne, Director of
Development; Vicky Lee, Education Director; and Shawn Roberts, STG AileyCamp Director. He then
introduced Ricardo Frazer, STG Board Member, to give a presentation on AileyCamp.
Mr. Frazer, a member of the STG Board of Directors and a Tukwila resident, spoke about STG's new
partnership with the Alvin Ailey Dance Theater. STG is a non - profit arts organization whose mission is to
bring diverse performing arts to three historic Seattle theaters: The Paramount, The Moore and The
Neptune theaters. In addition to Broadway shows and concerts, STG offers extensive free and low -cost
Tukwila City Council Committee of the Whole Minutes
May 26, 2015 Page 2 of 8
education and community programs. These programs are funded in part from proceeds of shows, as well
as contributions from government, corporations, foundations and individuals.
He explained that Alvin Ailey Dance Theater is a world- renowned dance company and national leader in
arts education. STG's Vicky Lee and Shawn Roberts have worked closely with Rick Still and Stephanie
Gardner of the City of Tukwila to launch STG's AileyCamp at the Tukwila Community Center. This will be
the 10th AileyCamp in the United States. AileyCamp is a nationally - acclaimed summer arts program for
under - served youth. The program uses dance as a vehicle for developing self- esteem, creative
expression and critical thinking. Participants will be drawn from the area bordered by Tacoma, Bellevue,
Seattle and the south Seattle area, including Tukwila. It is a free 6 -week summer dance program
(Monday- Friday, 8:30 a.m. to 3:30 p.m.) for students ages 11 through 14. The camp will launch in
Tukwila in June of 2016.
Mr. Frazer stated the cost of the program in the first year is $280,000, including rent, teaching and
administrative staff, meals, transportation and uniforms. STG is committed to raising funds for 3 years of
the program — approximately $800,000.
Josh LaBelle, Executive Director, said STG is currently spending $1.1 to $1.2 million per year on
education and community programs. STG is beginning a 5 -year plan to increase the financial resources
and impact of these programs by 5 to 10% each year. AileyCamp is an incredible opportunity to invest in
our youth. Half of the $280,000 is people cost, including camp administrative and artistic staff. The other
$140,000 is operating expenses.
In response to questions from Councilmembers, Mr. LaBelle and Shawn Roberts, STG AileyCamp
Director, provided additional information on the program. The three -year plan is based on 60 participants
per summer. The program will be introduced through public schools, principals, and teachers. The
National Director of AileyCamp will do presentations this first year at specific middle schools in South King
County, including Tukwila. The program's focus is on under -served middle- schoolers. Participants do not
have to be dancers; students of all mobilities and all abilities are welcome. Dance will be a vehicle to
interrupt the trajectory they may be on in their life. Students will learn five different styles of dance, as
well as participate in personal development and creative writing classes. An on -staff therapist will also be
available every day. The program will end with a final performance at Foster High School's Performing
Arts Center. AileyCamp has proven to be one of the most successful programs for under -served youth in
the nation.
At other AileyCamp locations, it is typical for more than twice the amount of students to apply than can be
accommodated. Applicants and their families will go through an extensive interview and selection
process through STG, including how the student is doing in school and what their life trajectory looks like.
Some locations have a policy that students can only attend AileyCamp once, which provides opportunities
for more students to participate.
Participants go through evaluations before, during and after the camp. Some sites have follow -up
programs, or have participants who return as counselors. STG's budget will also provide the participants
and their families with an opportunity to see an Alvin Ailey performance at the Paramount or other theater
in the region.
Mr. LaBelle explained their goal tonight was to create awareness of this new opportunity for middle school
students. They would also welcome any ideas for identifying new sources for financial support, so that
fund raising for the AileyCamp program does not compromise STG's other programs. He stated STG
staff looked at several locations and were very impressed with Rick Still and the Community Center staff
and facility, and there is great excitement about bringing this program to the area.
Councilmembers expressed appreciation to STG staff for the presentation. The suggestion was made to
present this information to other jurisdictions in the surrounding area from which the program will draw
students to increase awareness and the potential for funding support. Councilmember Quinn mentioned
an excellent AileyCamp video he has seen, which did a great job of depicting the excitement and
discipline of the participants.
Tukwila City Council Committee of the Whole Minutes
May 26, 2015 Page 3 of 8
Vanessa Zaputil, 15171 52nd Avenue South, expressed support for the Sounders S2 who have advanced
to the 3rd round of the Open Cup and will be taking on the Portland Timbers T2 at Starfire tomorrow.
Ms. Zaputil expressed concern at the City's decision to discontinue coordinating swimming lessons with
the Tukwila Pool for Camp Tukwilly participants. She stated this was often the only opportunity for some
participants to take swimming lessons. The program served 111 camp participants in 2014 and 128 in
2013. She noted that drowning is the second leading cause of unintentional death in children. She
stated pool staff contacted Parks & Recreation staff in February prior to the summer brochure deadline,
indicating the pool's desire to continue this program and City staff confirmed likewise. A few months later
it was confirmed to the pool staff that the City would not be offering daily swim lessons as part of the
camp.
Ms. Zaputil stated the program is still very viable and asked that Council take steps to reinstate this
add -on swim lesson option before the summer camps start on June 22.
The Councilmembers expressed interest in continuing to make the option for swimming lessons available
and requested information from City administration on the decision and what it would take to reinstate the
option by June 22. It was suggested that the Tukwila Pool Metropolitan Park District Board of
Commissioners discuss the issue at their meeting this week.
SPECIAL ISSUES
a. A contract for inspection services.
Councilmember Seal indicated this item was discussed at the Community Affairs and Parks Committee
meeting on May 11, 2015. The committee members were unanimous in recommending approval.
Jerry Hight, Building Official, explained there is a shortage of building inspectors in Tukwila, as well as
neighboring jurisdictions. This contract would fund building inspection services in the City through
4LEAF, Inc., until December 31, 2015. The City currently has three open inspector positions and those
salary cost savings would fund this item. Staff recommended this item be forwarded to the Consent
Agenda at the June 1, 2015 Regular Meeting.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE CONSENT AGENDA AT THE
NEXT REGULAR MEETING.
b. Landscape Conservation and Local Infrastructure Program Feasibility Analysis. Matt Hoffman,
Heartland, LLC, and Nick Bratton, Forterra.
Lynn Miranda, Senior Planner with the Department of Community Development, explained the City
contracted with Heartland, Forterra and ECONorthwest to evaluate the viability of implementing new state
legislation —the Landscape Conservation and Local Infrastructure Program —which supports urban
redevelopment and helps cities achieve growth goals. The feasibility study was funded through a grant
from the Washington State Department of Commerce.
The briefing tonight is in anticipation of potential adoption at a later date, when the timing is right.
Ms. Miranda introduced Matt Hoffman of Heartland, LLC; Nick Bratton of Forterra; and Darren Greve of
King County, who was also a partner in this process.
Mr. Greve stated he manages King County's land conservation and growth management programs.
Through the last decade or more King County has strived to build a critical mass of partner cities to help
manage the County's regional future growth and protect rural open spaces, farm lands and forest lands.
Central to this strategy is relocating that future development potential inside the designated King County
and city Urban Growth Area.
Tukwila City Council Committee of the Whole Minutes
May 26, 2015 Page 4 of 8
King County is currently working with five partner cities, both small and large: Bellevue, Issaquah,
Sammamish, Normandy Park and Seattle. Other cities are also looking at this tool to manage growth.
The Landscape Conservation and Local Infrastructure Program (LCLIP) creates incentives for both land
conservation in the county and infrastructure improvements in cities to support future development. The
overall purpose is to preserve farm and forest land by transferring development capacity from these lands
to cities through a TDR (transferable development right). Another piece of the equation is for the County
to help with infrastructure funding to accommodate the growth cities are being asked to accept from farms
and forests. This new revenue stream is not a new property tax or sales tax. King County would be
agreeing to transfer a portion of King County General Fund property tax revenue to the city to invest in
City infrastructure to support new growth. The County's incentive is to maintain sprawl and maintain rural
areas.
Nick Bratton, Policy Director with Forterra, utilized a PowerPoint presentation to provide an overview of
the feasibility study.
LCLIP can help Tukwila build on other work, such as its Community Connectors project, that have helped
identify areas of interest in the City's Comprehensive Plan update to address needs across the entire
community. The program encourages growth in areas where it is desired —where there is transit,
schools, jobs, and public services, and provides a flexible new source of money to help cities pay for
infrastructure improvements that support urban growth. LCLIP is a new concept in the State of
Washington —a combination of a form of tax increment financing that marries infrastructure funding
sources with transfer of development rights.
LCLIP is a market - driven tool. The transferable development right (TDR) is a real estate commodity that
landowners can voluntarily choose to sell on the open market for financial gain —and for permanent
conservation of their land. The TDR conserves open spaces by removing the rural landowner's right to
build a home on their farm or forest land in exchange for giving a private developer bonus rights (such as
additional floor area or building height or a multi- family tax exemption, for example) for a development
project in an urban growth area to achieve greater density. In exchange for accepting these development
rights, the City can access tax revenue from future growth in the City for financing public infrastructure
through a tool called tax increment financing (TIF). At the start of the program, a snapshot of the
assessed value in the City at that point in time is taken. After that point, as growth occurs, the City
collects a portion of the County's share of the revenue from new projects, which they can access for up to
25 years.
The City is responsible for making a good -faith effort to move these development rights into the City.
After year 10 of the program, the expectation is that the City will meet 50 percent of the conservation
goals it set out. In subsequent 5 -year intervals, it needs to meet 3/4 and 100 percent of those goals.
Should the City complete its program milestones, it can collect revenue for the full 25 years.
The feasibility study looked at the following questions:
1. Can LCLIP work in Tukwila (with its projected growth and infrastructure needs)?
2. How much money could the program potentially generate?
3. When should the City begin to use the LCLIP program?
4. What are the risks?
Matt Hoffman of Heartland, LLC, provided additional information on the feasibility study
Basic elements
• What geography makes sense ?:
A key tenant of the program is that the qualifying growth can be in no more than 25% of the City's
assessed value. Two of the most logical areas in the City are Tukwila International Boulevard and the
Tukwila Urban Center, which has recently been rezoned to accommodate new growth. A third area —
Tukwila South —was also considered as Tukwila South's portion of assessed value today is very small,
so it could easily be included in the 25% valuation as well.
Tukwila City Council Committee of the Whole Minutes
May 26, 2015
• Growth assumptions (how much and what type):
- Conservative
- Meet growth targets
- Exceed growth targets /large project
Page 5 of 8
The analysts started with the Puget Sound Regional Council (PSRC) VISION 2040 growth targets, and
looked at Tukwila's historic growth and how future growth may evolve and line up with those growth
targets. That information was layered on top of the buildable lands assessment as well as the capacity
(total square footage that could be developed and what type of product could be developed). It was
determined the results meet the growth target scenario and seemed mildly optimistic but within reach.
Forecasts were also done using a conservative scenario and a high - growth scenario.
• How the City will use TDRs (Tukwila is allocated up to 405 TDR credits):
- Incentive zoning
Examples: Allow building height over the current 65 -foot limit in the Urban Renewal Area or lower
parking ratios
- Development agreements
Examples: Negotiations in Tukwila South or with the arena project
- Multi- family Tax Exemption
Example: Developer would use 80% of the 8 -year tax exemption benefit to acquire TDRs and
20% to benefit the project
- City acquisition
At the specific threshold periods, i.e. in year 10, if the City has not met 50% of its commitment, the
City would need to acquire TDR credits (gap credits) to keep the program going
• Revenue scenarios:
Growth Assumption
Revenue (NPV )*
Revenue (nominal)
Conservative
$ 2.5 M
$ 5.4 M
Meet targets
$ 5.1 M
$10.3 M
Exceed targets
$ 9.5 M
$18.2 M
+ Tukwila South
$22.2 M
$41.9 M
*NPV = net present value
TDR revenue is a function of growth and the amount of credits the City chooses to accept. If the City
were to accept 100 percent of the credits and met its credit utilization targets —and had enough growth to
spin off revenue from King County —the City would have the highest probability to maximize its dollars. If
the City accepted growth at 50 percent, revenues would be measurably less.
Risks
• Growth is lower than projected (not getting as much revenue as anticipated and /or the market is not
absorbing the TDR credits
• Timing of growth (best to start the program at the start of growth)
• Private market doesn't place all the TDR credits
Key findings
• The study shows that LCLIP will work in Tukwila, even under a conservative scenario.
• The program could generate between $2.5 million and $9.5 million adjusted for inflation.
• It would be best to time the start of the program with a project using TDR (e.g. a Development
Agreement or multi - family project).
• The risks are low growth and City acquisition.
Tukwila City Council Committee of the Whole Minutes
May 2.6, 2015
Page 6 of 8
Ms. Miranda stated that the City would not need more growth than would normally occur in order to make
the LCLIP program viable. It would mean looking at that future growth in a different way and getting
credit for that growth.
If Council is interested in follow -up on the LCLIP program, staff would develop a proposal for action for
discussion at a Committee meeting and it would need to go through a public process.
The Councilmembers asked clarifying questions including:
• What a ballpark calculation would be for how revenue would stack up against potential tax losses, i.e.
with the multi - family tax exemption versus how much revenue would spin off those new projects.
• Whether there is a cost associated with implementing, marketing and managing this program.
• What a worst case scenario would look like financially, i.e. if there was a long -term recession.
Mr. Bratton explained the program was designed with intermediate progress milestones so that if
the City had not realized enough growth to meet its obligation by year 10 and did not choose to
make an investment to purchase credits, the program would end.
• How King County would transfer the funds.
Mr. Greve explained funds would be transferred on an annual basis. It is structured such that if
the City agrees to take its full allocated share of 405 credits, the City can capture 75 percent of
King County's portion of the property tax pie for new construction in these districts. The risk is that
the money from the County comes when the development comes. The City could bond against
the revenue in advance if it wanted to make the infrastructure investment up front.
• Whether the growth based on the PSRC target is equivalent to the 405 credits.
Mr. Greve stated that based on using the multi - family tax exemption scenario only, it would mean
12 multi - family projects at an average of 120 units over the 25 -year period.
• What approach other cities have taken.
Most of the County's current interlocal agreements with partner cities happened before LCLIP
became usable. The City of Seattle has an LCLIP agreement with King County for South Lake
Union. Their allocated share is 3,500 credits based on their 2040 growth projection. Seattle
agreed to accept about 20% of that (the minimum), so they will collect about 17% of King County's
portion of property tax for new construction in that area (for 25 years). Other cities have done the
feasibility analysis and crunched the numbers, and are waiting for the opportune moment with a
big development before starting the program.
• Whether implementation of the LCLIP program would make Tukwila more competitive in the
development market over other cities.
• Whether commercial projects, such as the arena, could absorb development rights. (Yes).
• What needs to be done before Tukwila could start implementing the program.
A set of steps has been mapped out that cities need to follow, which include: (1) an ordinance
identifying the geographic areas to be included, (2) what infrastructure investments the City wants
to make, and (3) how many TDR credits the City wants to accept. It is helpful to develop the
ordinance in partnership with King County.
• Whether the City can start the program with a lower number of credits and then increase later.
405 TDR credits would give the City the maximum return. Should the City accept a lower number
and decide to increase the number later, it would forgo the opportunity to collect revenue on the
growth that has already happened.
Tukwila City Council Committee of the Whole Minutes
May 26, 2015
• How much is too much, i.e. over built, too dense, high housing costs.
Page 7 of 8
It is possible the market could exceed the growth targets the City has already planned for. Seattle
wrestled with the same question for the South Lake Union area. They put very strong incentive
zoning in place to require developers to purchase TDRs. They also put in very strong assertions
for developers to pay in for affordable housing.
• Whether LCLIP would be an incentive for Tukwila South owners to develop?
The market would drive development rather than the LCLIP program.
• What are the risks?
The main catch is the uncertainty —will growth happen at the rate projected and will TDR credits
be placed? If not, the City would be faced with continuing the program at its own expense
(purchasing TDRs) or walking away from the program. Even in the conservative scenario modeled
in the study where growth targets are not met and the City used its own money to purchase
credits, the City still came out ahead.
• What are the chances King County's budget will cause them to discontinue the program?
It costs the County a lot to provide services to distant urban development, so they save money by
concentrating growth in the urban area. If the County can help cities with infrastructure to get
more development, both the City and County would get more property tax revenue.
c. Discussion and consensus on Sound Cities Association Public Issues Committee (SCA PIC)
items.
Council President Kruller provided information on Sound Cities Association Public Issues Committee's
review of an earlier draft of the Committee to End Homelessness Strategic Plan, including: (1) lack of
details regarding the costs of implementation, funding sources, and lead partners for various strategies;
(2) the issue of governance structure; (3) questions about what the plan means for cities and why it's
being created; and (4) objections to references to the "criminalization of homelessness." Modifications
have been made, and Sound Cities proposed a policy position (on pages 68 -69 of the agenda packet),
which endorsed the plan conditional on review and approval of the final language.
Councilmember Robertson asked clarifying questions regarding the number of Sound Cities governance
positions and funding commitments required for South King County cities.
REPORTS
a. Mayor Haggerton stated that City Administrator David Cline's father passed away this morning.
b. City Council
Councilmember Duffie expressed appreciation to the students who made up this evening's color guard.
He noted that the suicide rate for veterans is high and veterans need support.
Councilmember Hougardy attended a SCATBd meeting on May 19 where a presentation was given on
how Metro is addressing the problem of ridership, trips and access to transit. There was also discussion
on park- and -ride lots. Ms. Hougardy will be writing a letter on behalf of SCATBd to Metro and the Transit
Board advocating for more lots. Metro has stated they are not using their budget for capital
improvements. They are using it for routes and access to routes, a solution that works better in Seattle
than in suburban communities.
She also attended a King County Regional Transit Committee meeting on May 20, which featured a
presentation on the integration of Sound Transit's and Metro's plans in order to create efficiencies, e.g.
how Sound Transit and Metro both use the tunnel
Tukwila City Council Committee of the Whole Minutes
May 26, 2015 Page 8 of 8
Council President Kruller attended the South King County Chamber of Commerce Business Roundtable
on May 20, where the Port of Seattle presented information on what the impacts of the airport study and
future changes will mean to the community. She also attended the Seattle Southside tourism networking
meeting on May 20 where representatives of the Port and Alaska Airlines spoke. On May 21 she
attended the Tukwila School District Bond Committee meeting and a training consortium titled "From
Public Good to Public Great," which focused on LEAN principles. She announced that Mike Lydon, the
author of "Tactical Urbanism," will speak at the Town Hall on June 4, which will start at 6:00 p.m. The
event will also feature time for discussion with citizens.
c. Staff
There was no report.
d. City Attorney
The City Attorney's presence is not required at Committee of the Whole meetings
e. Intergovernmental
There was no report
MISCELLANEOUS
Councilmember Duffie stated that a car was parked in front of his house in the middle of the day on
Sunday and he later learned the occupants had kicked in the door to the back of the house across the
street from his house. He reminded everyone that continued vigilance in our neighborhoods is important
Councilmember Robertson stated that the Council approved funding for the Duwamish Gardens Project
at last week's meeting, at which time he received some credit for the project. As a member of WRIA 9, he
wanted to give most of the credit to three people in the City: (1) De'Sean Quinn, who served as Council
President last year and is a member of the South Central Action Caucus Group; (2) Carol Lumb, Senior
Planner with the Department of Community Development, who was instrumental in developing the City's
Shoreline Master Program and planning the department's approach to development on the river; and (3)
Ryan Larson, Senior Program Manager with the Public Works Department, who played a key role in this
project. Mr. Robertson stated the Duwamish Gardens will be here for many years and will help ensure
that King Salmon stay in the region.
The Councilmembers expressed appreciation to Joyce Trantina for sharing her talent this evening.
ADJOURNMENT
9:42 p.m. COUNCIL PRESIDENT KRULLER DECLARED THE COMMITTEE OF THE WHOLE
MEETING ADAURNED.
I President
�L
Barbara Saxton, Admi strative Support Coordinator
APPROVED AND SIGNED BY THE COUNCIL PRESIDENT ON 6/15/15
AVAILABLE ON THE CITY'S WEBSITE 6/16/15