HomeMy WebLinkAboutFS 2015-10-06 COMPLETE AGENDA PACKETCity of Tukwila
Finance and Safety
Committee
O Kathy Hougardy, Chair
O Joe Duffie
O De'Sean Quinn
AGENDA
Distribution:
Recommended Action
K. Hougardy
P. McCarthy
J. Duffle
C. O'Flaherty
D. Quinn
R. Turpin
K. Kruller
L. Humphrey
D. Robertson
S. Brown
Mayor Haggerton
B. Miles
D. Cline
V. Carlsen
TUESDAY, OCTOBER 6, 2015 — 5:30 PM
HAZELNUT CONFERENCE ROOM
(formerly known as CR #3) at east entrance of City Hall
Item
Recommended Action
Page
1. PRESENTATION(S)
2. BUSINESS AGENDA
a. A contract amendment with The Futures Corporation for
a. Forward to 10/19 Consent
Pg.1
a Human Resources Operations and Strategic Plan.
Agenda.
Stephanie Brown, Human Resources Director
b. Fee deferral policy:
b. Forward to 10/12 C.O.W.
Pg.9
(1) Ordinances (3) establishing a fee deferral policy
and 10/19 Regular Mtg.
relating to transportation, fire and parks impact
fees.
(2) A resolution establishing a fee deferral process for
building permit fees.
Brandon Miles, Economic Development Liaison
c. 2015 2nd Quarter Investment Report
c. Information only.
Pg.49
Vicky Car /sen, Deputy Finance Director
3. ANNOUNCEMENTS
4. MISCELLANEOUS
Next Scheduled Meeting: Tuesday, October 20, 2015
SThe City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206 - 433 -1800 (TukwilaCityClerk @TukwilaWA.gov) for assistance.
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Stephanie Brown, Human Resources Director
DATE: October 6, 2015
SUBJECT: Contract Amendment
ISSUE
In April of this year, the City hired consultant John Luthy, of the Futures Corporation to work with
the Technology Services Department to develop an operations and strategic plan. The contract
also provides for other departments to work with John Luthy for the same purpose, if requested.
The funding for this contract was not to exceed $25,000, and expenditures have reached this
amount.
BACKGROUND
The Human Resources Department provides internal services to all City departments and
recognized the value of what the Technology Services Department developed and wanted to
also create an operations and strategic plan to help guide our work now and into the future in
alignment with the City's Strategic plan. In addition, the Finance and Parks & Recreation
Departments have also expressed interest and this additional funding will also support their
efforts.
FINANCIAL IMPACT
The request is to amend the contract for an additional $25,000, with not to exceed $50,000.
Each department utilizing the services of John Luthy have funding allocated in their budget to
cover his expenditures.
RECOMMENDATION
The Committee is being asked to approve the contract amendment and forward this item to the
October 19, 2015, Consent Agenda.
ATTACHMENTS
Contract for Services Amendment (Draft)
Exhibit A -1 Scope of Work (Draft)
2
That portion of Contract No. 15-079 between the City of Tukwila and John Luthy of the Futures
Corporation, is amended as follows:
CA: 2012
A. payment for the work provided by the Consultant shall be made as provided on Exhibit
"A-l" attached hereto, provided that the total amount of payment to the Consultant for
Lhe new scope of work shall not exceed $25,000 without express written modification of
the Agreement signed by the City. The total contract amount shall not exceed
$50,000.00.
B. The Consultant may submit vouchers to the City once per month during the progress of
the work for partial payment for that portion of the project completed to date. Such
vouchers will be checked by the City and, upon approval thereof, payment shall be
made to the Consultant in the amount approved.
C. Final payment of any balance due the Consultant of the total contract price earned will
be made promptly upon its ascertainment and verification by the City after the
completion of the work under this Agreement and its acceptance by the City.
10
City of Tukwila Agreement Number: 15-079(a)
6200 Southcenter Boulevard, Tukwila WA 98188
D. Payment as provided in this section shall be full compensation for work pet-formed,
services rendered, and for all materials, supplies, equipment and incidentals necessary
to complete the work.
E The Consultant's records and accounts pertaining to this Agreement are to be kept
available for inspection by representatives of the City and the state of Washington for a
period of three (3) years after final payments. Copies shall be made available upon
request,
All other provisions of the contract shall remain in full force and effect.
Dated this - day of
CITY OF TUKWILA
Jim Haggerton, Mayor
ATTEST/AUTHENTICATED
CA: 2012
El
91
CONTRACTOR
Printed Name/Title:
City Attorney
City of Tukwila Contract Number:
6200 Southcenter Boulevard, Tukwila WA 98188
EXHIBIT A-1: SCOPE OF WORK
*This proposal is focused on the Duman Resources (HR) department, in addition to providing support
to other departments in the development of an operation and strategic plan if desired.
EsSENTIAL PROJECT METHODOLOGY
The following sections provide a brief review of the project as stated in initial conversations, and presents
essential planning and proposed project deliverables.
The Futures Corporation will provide a strategic planning overview/ basic training to as many City
departments as possible. It will provide a precise introduction to the planning process that offers a
straightforward path to plan development.
2. A published planning guide and the book, planning the Future will be provided to City personnel at
cost and will be used as the basis for plan development along with other materials written by John
Luthy and published by the International City/County Management Association (ICMA). This is a
proven system that has received. considerable acclaim.
Individual planning 'how to' handouts will be provided for to help facilitate HIV's planning as
required. Provide additional training to HR staff to help them understand the planning process and key
actions moving forward.
9
4. Examples of well- conceived HR plan formats from other applicable cities or counties will be
provided. These will expedite HR's deliberation regarding how to format its plan and what content is
essential.
Review existing mission, vision and values statements (if available) and amend as necessary.
6. Facilitate an organization and operational analysis that will help determine internal issues and
challenges that need to be considered in long -term HR planning.
7. Conduct analysis to determine external technical/ communications issues/ challenges that impact
the user community (City agencies) and develop a list of those issues and challenges that are negatively
impacting the City's (or an agency's) overall efficiency, effectiveness, productivity, quality or cost.
8. Help establish HR's long -term overarching goals. What MAJOR achievements or milestones does
HR wish to accomplish for its internal operation and its user community (city government) and what
issues or challenges are driving them?
9. After analysis in both the HR department and with user agencies, Identify Major Challenge Areas
(MCAs) that involve communications, including service issues that impact efficiency, effectiveness,
productivity, quality and cost.
Summation: Ultimately the HR department will have a properly articulated mission, vision and values
statement, a listing of major internal issues and challenges that impact its ability to achieve its mission, as
well as broader issues and challenges that impact the City's user community (other departments) and their
ability to provide efficient, effective and high quality services.
Benchmark Deliverables
The HR department will have a clear mission as well as a vision of perceived future
challenges and a statement of values or operating philosophy - The process will review existing
vision and mission statements and help the department articulate a current and accurate vision and
mission.
2. Identify key issues and challenges — The process will identify both tangible and intangible issues
and challenges the department and city user community faces. These will provide the basis for long-
term goals and strategic initiatives adopted by the department and establish a platform for setting
priorities based on impact and consequence.
3. Link with current initiatives - The Mayor's, Council's and City Administrator's current and
preferred long -term focus areas will be reviewed and will be established as essential parameters for
all departmental core programs.
The Futures Corporation Consultant Agreement 2015
0
Page 2
4. Performance Measurement & Reporting — Done properly, the strategic plan will naturally
identify accurate and meaningful performance measures that can be used to gauge progress
5. Connect user community/ departmental expectations — The plan will use existing data plus input
from either meetings with key stakeholders or partnering/ collaborating agencies to assess needs,
expectations and issues related to the perceived state of IT.
BUDGET AND COST SUMMARY
Knowing the talent that exists in the HR department and City, we assume that some information gathering,
writing, formatting, and final plan publishing may be accomplished by management staff and department
personnel. We also assume that John Luthy's best role is to introduce a clear, streamlined approach and
conduct analysis that can be used to develop a clear, issue -based strategic plan. However, John Luthy is
typically asked to undertake much of the writing to create samples and this time is factored into this budget.
Also, other departments have suggested that they would like some time to discuss their planning and plan
development, so at least some additional time is assumed for that as well.
The project budget is established as a not -to- exceed amount that includes travel and expenses
associated with that travel. For the total project, other than some aspects of full implementation that
may require more or possibly less time, the following represents the cost summation. A maximum of
two trips to Tukwila is anticipated with an average of three to four lodging nights (minimum trip is
3 days to maintain efficiency). Airfare is calculated at $370 per trip and lodging at $130 /night. If
transportation can be provided to and from the airport, car rental can be avoided and food would be
the only other expense, cost are estimated at $1,000. On -site time is calculated at 3 days and another
20 to 30 days off -site for the amount of plan drafting that is typically done. Total budget estimate is
not to exceed $25,000.
The Futures Corporation Consultant Agreement 2015
Page 3
7
m
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Brandon J. Miles, Economic Development Liaison
DATE: September 22, 2015
SUBJECT: Building and Impact Fee Deferral Policy
ISSUE
Should the City adopt a fee deferral program within the Transit Oriented Development area of
the Southcenter area of the City to encourage residential development?
BACKGROUND
In April and May of this year, staff briefed the City Council on a proposal to allow deferral of
some building and impact fees as an incentive to encourage new multi - family residential
development within the Transit Oriented Development (TOD) District of the Southcenter
neighborhood.
A fee deferral is not a waiver or reduction of fees, but a delay in the timing of when the fees are
collected. A development project has to expend a considerable amount of funds months and
sometimes years before the project begins to generate revenue. For example, the Washington
Place project, which is currently under construction, is anticipated to be completed in fall of
2017. Several cities, such as Olympia and Sammamish, allow for fee deferrals. A fee deferral
shifts the payment of the fees into the future and thus allows the developer to be closer to
generating revenue before fees are due.
In staff's memo to the City Council dated April 24, 2015, staff presented an outline on how a fee
deferral program might work. The Council discussed the fee deferral in May and consensus
existed for staff to begin working on the necessary ordinances and resolution for further
consideration by the City Council. Following Council's review of the policy language, staff has
worked to draft the language into code language, which has resulted in some minor
modifications to staff's initial proposal.
DISCUSSION
In order to adopt a fee deferral program the City will need to adopt three ordinances and a
resolution. The three ordinances deal with traffic, parks, and fire impact fees. The resolution is
regarding building permit fees.
The following are the general provisions that apply to both the impact fee deferral and the
building permit fee deferral:
1. The project must be located west of the Green River and be located within the TOD
District of the Southcenter area;
2. The project must include at least 100 residential units and more than 50% of the gross
building area must be used for residential purposes.
3. The property owner must execute an agreement with the City for the fee deferral. Staff is
proposing that that Mayor be permitted to execute the fee deferral agreements on behalf 9
INFORMATIONAL MEMO
Page 2
of the City. Provisions must be included in the agreement to secure payment of the
deferred fees, plus accrued interest, in the case of default by the property owner.
Provisions may include, but are not limited to, a lien against subject property, letter of
credit and /or surety bond. The Mayor may consider other relevant information in
approving fee deferral requests including, but not limited to, the ability of the property
owner to satisfy the obligations of the agreement and pay the deferred fees. The Mayor
is authorized to include any other provisions or requirements in the deferral agreement
that he /she deems necessary to meet the intent of this resolution, to protect the financial
interest of the City, and /or to protect the public welfare.
4. Interest will be charged on all fees deferred. For the impact fee deferral, the interest rate
will be based on the ten year US Treasury note interest rate at time of issuance of the
building permit.' For the building permit fee deferral, the interest rate will be based on
the two year US Treasury note2.
The following are specific provisions for the impact fee deferral:
1. Impact fees may be deferred up to ten years from the date of permit issuance (this is
when the fees are typically paid). The property owner is required to make eight equal
yearly payments to the City, with the first payment due to the City 36 months after permit
issuance and the final payment being due no later than 120 months from issuance of the
building permit.
2. As part of the deferral agreement, the property owner must agree to waive any appeals
under the various impact fee ordinances.
The following are specific provisions for the building fee deferral:
1. Only one building permit per parcel is eligible to be deferred. A project, such as
Washington Place, will have several building permits (as well as other permits) for the
project. The timing of these permits vary. For example, while construction has
commenced on the property, the main building permit for the project is still under review
by the City. It would create significant logistical issues for the staff to allow all the permit
fees to be deferred.
2. The building permit fee must be greater than $300,000. Only the building permit fee due
at time of issuance of the building permit is eligible for deferral. All other fees, including,
but not limited to, building permit plan review fees, utility connection fees, and fees
related to mechanical, plumbing, land use, sign, and public works fees are due in the
normal course of business, as typically charged to other applicants.
3. The outstanding fee balance, plus interest, is due to the City within 24 months of
issuance of the building permit or prior to issuance of the certificate of occupancy,
whichever occurs first.
Washington Place Update
While staff had been considering the idea of a fee deferral program for the sometime, the timing
of the fee deferral policy was prompted by the proposed Washington Place project at the old
Circuit City site on Andover Park East. When completed, Washington Place will be 19- stories,
with a full service hotel and 371 residential units.
1 On September 22, 2015 the interest was 2.130.
2 On September 30, 2015, the interest rate was .630
10 Z:1Brandon\Fee Deferral, Oct, 20151FINAL MEMO,doc
INFORMATIONAL MEMO
Page 3
Staff provided a briefing to the Committee of the Whole on May 11, 2015 regarding Washington
Place. At the meeting the proponents of Washington Place submitted a letter to the City Council
requesting the following:
1. That the City use the 3 year US Treasury Note, not the 10 -year Treasury Note for the
interest on the fee deferral; and
2. That parks and fire impact fees use actual square footage, not be charged per unit.
Interest Rate
In staff's initial proposal to the City Council staff proposed that the ten year Treasury note be
used for both the impact fee and building permit fee deferral. The reason for this was
simplification, staff would only have to track one interest rate for the fees deferral. Staff's revised
proposal provides two interest rates. Since the building permit fee deferral will be paid back to
the City sooner, staff is proposing to use the interest rate on a Two Year Treasury note, this is a
lower interest rate than the Ten Year Treasury note. The impact fees would still use a Ten Year
Treasury note since the term of the deferral is ten years.
Staff's proposal to use Treasury notes is intended to preserve the value of the funds the City
would have received at the time of issuance of the building permit. The City is not trying to make
a profit on the deferred fees. The City typically places funds in low risk, shorter term
investments. The two and ten year Treasury notes were chosen because they are widely
traded and respected financial instruments and each reflects the total length of the fee deferrals.
Impact Fee Calculation
For residential uses, the City's Park and Fire Impact fees are assessed on a per unit basis
based on an analysis of occupancy load. Multi- family and single family pay a slightly different
fee per unit, with multi - family paying a slightly lower fee per unit. Neither the fee for multi - family
or single family make any adjustments based on the square footage of the unit or number of
bedrooms.
The Fire and Park Impact Fee Ordinances allow staff to make adjustments to the fees based
upon the anticipated, actual impacts from a project. Based on his analysis of the estimated
occupancy of the residential units for the Washington Place project, the Fire Marshall made an
adjustment to the fire and impact fee calculation by counting three studio units as one unit and
1.5 one bedroom units as one unit. This resulted in a significant reduction in the park and fire
impact fees due for the project.
Following the May 11th meeting staff requested information from the cities of Bellevue, Seattle,
and Tacoma regarding calls for service for similar projects within their respective jurisdictions.
Based upon the information reviewed by the Fire Marshall it was determined that additional
reductions in the fire and park impact fees could not be made.
FINANCIAL IMPACT
The proposal will not reduce revenue received by the City, only delay collection.
RECOMMENDATION
The Council is being asked to approve three ordinances and one resolution and consider these
items at the October 12th Committee of the Whole meeting and subsequent October 19th
Regular Council meeting.
ZABrandonTee Deferral, Oct, 2015TINAL MEMO.doc
11
INFORMATIONAL MEMO
Page 4
ATTACHMENTS
• Draft Transportation Impact Fee Ordinance
• Draft Park Impact Fee Ordinance
• Draft Fire Impact Fee Ordinance
• Draft Building Permit Fee Resolution
• Staff memo, dated April 24, 2015
• Minutes from May 5, 2015 Finance and Safety Meeting
• Letter from Washington Place Proponents, dated May 11, 2015
12 Z:0randonTee Deferral, Oct, 2015TINAL MEMO.doc
-1N, 0"M
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TUKWILA, WASHINGTON, AMENDING ORDINANCE
NO. 2305 §3, AS CODIFIED AT TUKWILA MUNICIPAL
CODE SECTION 9.48.060; PROVIDING A PROCESS FOR
THE DEFERRAL OF TRANSPORTATION IMPACT FEES
TO ENCOURAGE RESIDENTIAL DEVELOPMENT WITHIN
CERTAIN PORTIONS OF THE SOUTHCENTER AREA AF
THE CITY; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council adopted Ordinance No. 2043 on May 3, 2004, which
established that transportation impact fees be paid by applicants seeking development
approvals in the City, and
WHEREAS with adoption of the Southcenter Plan, the City laid out a vision to
encourage more housing within certain portions of the Southcenter area of the City; and
WHEREAS, market data indicates placement of housing within the Southcenter
area is difficult to accommodate under traditional financing methods; and
WHEREAS, developers often must make significant cash outlays prior to
commencing construction on projects; and
WHEREAS, restructuring the timing of payment of impact fees may assist in making
residential development within the Southcenter area of the City more successful; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
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Section 1. TMC Section 9.48.060 Amended. Ordinance No. 2305 §3, as codified
at Tukwila Municipal Code (TMC) Section 9.48.060, is hereby amended to read as
follows:
9.48.060 Time of Payment of Impact Fees.
A. The impact fees imposed pursuant to this chapter shall be assessed by the City at
the time of the application for the development permit, and shall be due and payable in full
at the time of issuance of such permit, unless a fee deferral agreement is executed
pursuant to TMC 9.48.095. The fee paid shall be the amount in effect as of the date of
the permit issuance.
B. Impact fees may be paid under protest in order to obtain a permit or other
approval of development activity.
Section 2. Regulations Established. A new TMC Section 9.48.095,
"Transportation Impact Fee Deferral," is hereby established to read as follows:
9.48.095 Transportation Impact Fee Deferral
A. In order to encourage residential and mixed -use development within the
Tukwila Urban Center Transit - Oriented Development (TUC -TOD) zoning district, fee
deferrals of all or a portion of the required transportation impact fees for a project may
be granted provided the following criteria are met:
1. The property owner must submit a technically - complete building permit
application clearly depicting the proiect for which the fee deferral agreement would
apply.
2. Before issuance of the building permit, the property owner must submit a
written letter requesting that the transportation impact fee be deferred. The City will not
consider any fee deferral requests from a tenant, contractor, or other third party. The
request must be submitted to the City no later than December 31, 2016.
3. The project must be located west of the Green River and be within the
TUC -TOD zoning district per Figure 18 -16, District Map, in Title 18 of the Tukwila
Municipal Code.
4. The project must include at least 100 residential units and at least 50
percent of the gross building square footage must be used for residential purposes. For
purposes of this section the term "residential' does not include hotels, motels, bed and
breakfasts or other similar transient lodging accommodations.
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5. A fee deferral agreement between the City and the property owner must be
executed prior to issuance of the building permit. The Mayor is authorized to execute
such agreements on behalf of the City. Provisions must be included in the agreement
to secure payment of the deferred impact fees, plus accrued interest, in the case of
default by the property owner. Provisions may include, but are not limited to, a lien
against subject property, letter of credit and /or surety bond.
6. As part of the agreement, the property owner must agree to waive any
appeals under TMC Section 9.48.120.
B. The Mayor may consider other relevant information in approving fee deferral
requests including, but not limited to, the ability of the property owner to satisfy the
obligations of the agreement and pay the deferred impact fees. The Mayor is
authorized to include any other provisions or requirements in the deferral agreement
that he /she deems necessary to meet the intent of this chapter, to protect the financial
interest of the City, and /or to protect the public welfare.
C. Transportation impact fees may be deferred up to 10 years from the date of
building permit issuance. The property owner shall make 8 equal, annual installment
payments to the City, with the first payment due to the City no later than 36 months after
issuance of the building permit, with the final .payment being due no later than 120
months from issuance of the building permit. The property owner may pay off the entire
balance any time prior to the end of the 10 -year deferral term.
D. Interest shall be charged on deferred transportation impact fees. The interest
rate shall be the same as the stated interest rate on the Ten Year US Treasury Note on
the date the building permit is issued (or closest date thereof). Interest shall be
compounded annually and shall begin to accrue upon issuance of the building permit.
E. The transportation impact fee deferral agreement may be consolidated with any
agreements to defer fire, parks, or building permit fees as outlined in TMC Chapters
16.26 and 16.28 and the consolidated permit fee resolution adopted by the City
Council.
Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section /subsection numbering.
Section 4. Severability. If any section, subsection, paragraph, sentence, clause
or phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
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Section 5. Effective Date. This ordinance or a summary thereof shall be
published in the official newspaper of the City, and shall take effect and be in full force
five days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2015.
ATTEST /AUTH ENTICATED:
Christy O'Flaherty, MMC, City Cle
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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Page 4 of 4
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TUKWILA, WASHINGTON, AMENDING ORDINANCE
NO. 2366 §1 (PART), AS CODIFIED AT TUKWILA
MUNICIPAL CODE SECTION 16.28.040; PROVIDING A
PROCESS FOR THE DEFERRAL OF PARKS IMPACT
FEES TO ENCOURAGE RESIDENTIAL DEVELOPMENT
WITHIN CERTAIN PORTIONS OF THE SOUTHCENTER
AREA OF THE CITY; PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council adopted Ordinance No. 2220 on December 15, 2008,
which established that parks impact fees be paid by applicants seeking development
approvals in the City; and
WHEREAS, the City Council adopted Ordinance No. 2366 on March 5, 2012, which
enacted certain refinements to Ordinance No. 2220; and
WHEREAS with adoption of the Southcenter Plan, the City laid out a vision to
encourage more housing within certain portions of the Southcenter area of the City; and
WHEREAS, market data indicates placement of housing within the Southcenter
area is difficult to accommodate under traditional financing methods; and
WHEREAS, developers often must make significant cash outlays prior to
commencing construction on projects; and
WHEREAS, restructuring the timing of payment of impact fees may assist in making
residential development within the Southcenter area of the City more successful;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
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Section 1. TMC Section 16.28.040 Amended. Ordinance No. 2366 §1 (part), as
codified at Tukwila Municipal Code (TMC) Section 16.28.040, is hereby amended to
read as follows:
16.28.040 Parks Impact Fee Assessment
A. The City shall collect parks impact fees from applicants seeking development
approvals from the City for any development activity in the City for which building
permits are required effective January 1, 2009, consistent with the provisions of this
ordinance.
B. Parks impact fees shall be assessed at the time of a technically - complete
building permit application that complies with the City's zoning ordinances and building
and development codes. Parks impact fees shall be collected from the fee payer at the
time the building permit is issued, unless a fee deferral agreement is executed pursuant
to TMC Section 16.26.095.
C. Except if otherwise exempt or deferred, the City shall not issue the required
building permit unless or until the parks impact fees are paid.
Section 2. Regulations Established. A new TMC Section 16.28.095, "Parks
Impact Fee Deferral," is hereby established to read as follows:
16.28.095 Parks Impact Fee Deferral
A. In order to encourage residential and mixed -use development within the
Tukwila Urban Center Transit - Oriented Development (TUC -TOD ) zoning district, fee
deferrals of all or a portion of the required parks impact fees for a project may be
granted provided the following criteria are met:
1. The property owner must submit a technically - complete building permit
application clearly depicting the project for which the fee deferral agreement will apply.
2. Before issuance of the building permit, the property owner must submit a
written letter requesting that the parks impact fee be deferred. The City will not consider
any fee deferral requests from a tenant, contractor, or other third party. The request
must be submitted to the City no later than December 31, 2016.
3. The project must be located west of the Green River and be within the
TUC -TOD zoning district per Figure 18 -16, District Map, in Title 18 of the Tukwila
Municipal Code.
4. The project must include at least 100 residential units and at least 50
percent of the gross building square footage must be used for residential purposes. For
purposes of this section the term "residential" does not include hotels, motels, bed and
breakfasts or other similar transient lodging accommodations.
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5. A fee deferral agreement between the City and the property owner must be
executed prior to issuance of the building permit. The Mayor is authorized to execute
such agreements on behalf of the City. Provisions must be included in the agreement
to secure payment of the deferred impact fees, plus accrued interest, in the case of
default by the property owner. Provisions may include, but are not limited to, a lien
against subject property, letter of credit and /or surety � ond.
6. As part of the agreement, the property owner must agree to waive any
appeals under TMC Section 16.28.100.
B. The Mayor may consider other relevant information in approving fee deferral
requests including, but not limited to, the ability of the property owner to satisfy the
obligations of the agreement and pay the deferred impact fees. The Mayor is
authorized to include any other provisions or requirements in the deferral agreement
that he /she deems necessary to meet the intent of this chapter, to protect the financial
interest of the City, and /or to protect the public welfare.
C. Parks impact fees may be deferred up to 10 years from the date of building
permit issuance. The property owner shall make 8 equal, annual installment payments
to the City, with the first payment due to the City no later than 36 months after issuance
of the building permit, with the final payment being due no later than 120 months from
issuance of the buildinq permit. The property owner may pay off the entire balance any
time prior to the end of the 10 -year deferral term.
D. Interest shall be charged on deferred parks impact fees. The interest rate shall
be the same as the stated interest rate on the Ten Year US Treasury Note on the date
the building permit is issued (or closest date thereof). Interest shall be compounded
annually and shall begin to accrue upon issuance of the building permit.
E. The parks impact fee deferral agreement may be consolidated with any
agreements to defer fire transportation, or building permit fees as outlined in TMC
Chapters 9.48 and 16.26 and the consolidated permit fee resolution adopted by the
City Council.
. Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section /subsection numbering.
Section 4. Severability. If any section, subsection, paragraph, sentence, clause
or phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
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Section 5. Effective Date. This ordinance or a summary thereof shall be
published in the official newspaper of the City, and shall take effect and be in full force
five days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of )2015.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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Page 4 of 4
kA
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TUKWILA, WASHINGTON, AMENDING ORDINANCE
NO. 2365 §1 (PART), AS CODIFIED AT TUKWILA
MUNICIPAL CODE SECTION 16.26.040; PROVIDING A
PROCESS FOR THE DEFERRAL OF FIRE IMPACT
FEES TO ENCOURAGE RESIDENTIAL DEVELOPMENT
WITHIN CERTAIN PORTIONS OF THE SOUTHCENTER
AREA OF THE CITY; PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council adopted Ordinance No. 2219 on December 15, 2008,
which established that fire impact fees be paid by applicants seeking development
approvals in the City; and
WHEREAS, the City Council adopted Ordinance No. 2365 on March 5, 2012, which
enacted certain refinements to Ordinance No. 2219; and
WHEREAS with adoption of the Southcenter Plan, the City laid out a vision to
encourage more housing within certain portions of the Southcenter area of the City; and
WHEREAS, market data indicates placement of housing within the Southcenter
area is difficult to accommodate under traditional financing methods; and
WHEREAS, developers often must make significant cash outlays prior to
commencing construction on projects; and
WHEREAS, restructuring the timing of payment of impact fees may assist in making
residential development within the Southcenter area of the City more successful;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
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Section 1. TMC Section 16.26.040 Amended. Ordinance No. 2365 §1 (part), as
codified at Tukwila Municipal Code (TMC) Section 16.26.040, is hereby amended to
read as follows:
16.26.040 Fire Impact Fee Assessment
A. The City shall collect fire impact fees from applicants seeking development
approvals from the City for any development activity in the City for which building
permits are required effective January 1, 2009, consistent with the provisions of this
ordinance.
B. Fire impact fees shall be assessed at the time of a technically - complete
building permit application that complies with the City's zoning ordinances and building
and development codes. Fire impact fees shall be collected from the fee payer at the
time the building permit is issued, unless a fee deferral agreement is executed pursuant
to TMC Section 16.26.095.
C. Except if otherwise exempt or deferred, the City shall not issue the required
building permit unless or until the fire impact fees are paid.
Section 2. Regulations Established. A new TMC Section 16.26.095, "Fire
Impact Fee Deferral," is hereby established to read as follows:
16.26.095 Fire Impact Fee Deferral
A. In order to encourage residential and mixed -use development within the
Tukwila Urban Center Transit - Oriented Development (TUC -TOD) zoning district, fee
deferrals of all or a portion of the required fire impact fees for a project may be granted
provided the following criteria are met:
1. The property owner must submit a technically - complete building permit
application clearly depicting the project for which the fee deferral agreement will apply.
2. Before issuance of the building permit, the property owner must submit a
written letter requesting that the fire impact fee be deferred. The City will not consider
any fee deferral requests from a tenant, contractor, or other third party. The request
must be submitted to the City no later than December 31, 2016.
3. The project must be located west of the Green River and be within the
TUC -TOD zoning district per Figure 18 -16, District Map, in Title 18 of the Tukwila
Municipal Code.
4. The project must include at least 100 residential units and at least 50
percent of the gross building square footaqe must be used for residential purposes. For
purposes of this section the term "residential" does not include hotels, motels, bed and
breakfasts or other similar transient lodging accommodations.
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5. A fee deferral agreement between the City and the property owner must be
executed prior to issuance of the building permit. The Mayor is authorized to execute
such agreements on behalf of the City. Provisions must be included in the agreement
to secure payment of the deferred impact fees, plus accrued interest, in the case of
default by the property owner. Provisions may include, but are not limited to, a lien
against subiect property, letter of credit and /or surety bond.
6. As part of the agreement, the property owner must agree to waive any
appeals under TMC Section 16.26.100.
B. The Mayor may consider other relevant information in approving fee deferral
requests including, but not limited to, the ability of the property owner to satisfy the
obligations of the agreement and pay the deferred impact fees. The Mayor is
authorized to include any other provisions or requirements in the deferral agreement
that he /she deems necessary to meet the intent of this chapter, to protect the financial
interest of the City, and /or to protect the public welfare.
C. Fire impact fees may be deferred up to 10 years from the date of building
permit issuance. The property owner shall make 8 equal, annual installment payments
to the City, with the first payment due to the City no later than 36 months after issuance
of the building permit, with the final payment being due no later than 120 months from
issuance of the building permit. The property owner may pay off the entire balance any
time prior to the end of the 10 -year deferral term.
D. Interest shall be charged on deferred fire impact fees. The interest rate shall be
the same as the stated interest rate on the Ten Year US Treasury Note on the date the
building permit is issued (or closest date thereof). Interest shall be compounded
annually and shall begin to accrue upon issuance of the building permit.
E. The fire impact fee deferral agreement may be consolidated with any
agreements to defer park transportation, or building permit fees as outlined in TMC
Chapters 9.48 and 16.28 and the consolidated permit fee schedule adopted by
resolution of the City Council.
Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section /subsection numbering.
Section 4. Severability. If any section, subsection, paragraph, sentence, clause
or phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
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Section 5. Effective Date. This ordinance or a summary thereof shall be
published in the official newspaper of the City, and shall take effect and be in full force
five days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2015.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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Page 4 of 4
DRAFT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, REPEALING RESOLUTION NO.
1845; ADOPTING A CONSOLIDATED PERMIT FEE
SCHEDULE; AND PROVIDING FOR A BUILDING PERMIT
FEE DEFERRAL PROCESS TO ENCOURAGE RESIDENTIAL
DEVELOPMENT WITHIN CERTAIN PORTIONS OF THE
SOUTHCENTER AREA OF THE CITY.
WHEREAS, the City Council adopted Resolution No. 1845 in 2014, establishing the
City's current consolidated construction fee schedule; and
WHEREAS with adoption of the Southcenter Plan, the City laid out a vision to
encourage more housing within certain portions of the Southcenter area of the City; and
WHEREAS, market data indicates placement of housing within the Southcenter
area is difficult to accommodate under traditional financing methods; and
WHEREAS, developers often must make significant cash outlays prior to
commencing construction on projects; and
WHEREAS, restructuring the timing of payment of building permit fees may assist
in making residential development within the Southcenter area of the City more
successful;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Repealer. Resolution No. 1845 is hereby repealed, effective October
20, 2015.
Section 2. For 2015 and 2016, the Technology Fee shall be set at 5% of the
applicable permit fee.
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Section 3. Public Works fees will be charged according to the following schedule:
PUBLIC WORKS FEE SCHEDULE
PERMIT DESCRIPTION
FEE
Type A (Short -Term Non - profit)
$ 50.00 + Technology Fee
Type B (Short-Term Profit)
$100.00 + Technology Fee
Type C
$250.00 application base fee, Technology Fee, plus
(Infrastructure and Grading on Private Property
four components based on construction value:
and City Right -of -Way and Disturbance of City
1) Plan Review
Right -of -Way)
2) Construction Inspection
3) Pavement Mitigation
Appeal of Sign Code Decision
4 Grading Plan Review
Type D (Long -Term)
$100.00 + Technology Fee
Type E (Potential Disturbance of
$100.00 +Technology Fee
Cit Ri ht -of -Wa
$591
Type F (Blanket Permits)
$250.00 processing fee, plus $5,000.00 cash deposit,
withdraw $100.00 per instance for inspection
Franchise — Telecommunications
$5,000.00 administrative fee
Franchise — Cable
$5,000.00 plus 5% of total revenue
Street Vacation
$1,200.00
Latecomer's Agreements
$500.00 processing fee, plus 17% administrative fee,
plus $500.00 segregation fee
Flood Zone Control Permit
$50.00 + Technology Fee
Section 4. Land use permit and processing fees will be charged according to the
following schedule:
LAND USE FEE SCHEDULE
All peer review fees will be passed through to the applicant per TMC Section 18.50.200.
Decision Type
2015
Fee
2016
Fee
Plus
Hearing
Examiner
Fees
Plus
Technology
Fee F
Appeal
Type 1, 2 and 4 Decisions
$591
$602
SEPA MDNS Appeal
$591
$602
Appeal of Sign Code Decision
$591
$602
Impact Fee Appeals:
Fire
$591
$602
Parks
$591
$602
Transportation
$591
$602
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Decision Type
2015
Fee
2016
Fee
Plus
Hearing
Examiner
Fees
Plus
Technology
Fee (TF)
Sign Permit (TMC Chapter 19)
Permanent
$243
$248
+ TF
Temporary
$106
$108
+ TF
Pole /Banner Initial Application
$243
$248
+ TF
Special Event
$106
$108
+ TF
Pole /Banner Annual Renewal
$53
$54
+ TF
New Billboard
$591
$602
+ TF
Master Sign Program —Admin
$2,173
$2,216
+ TF
Master Sign Program —BAR
$3,479
$3,549
+ TF
TUC Zone Modifications
Modification to TUC Corridor Standards
(TMC Section 18.28.130. C)
$591
$602
+ TF
Modification to TUC Open Space Regulations
(TMC Section 18.28.250 D. 4. d)
$591
$602
+ TF
Transit Reduction to Parking Requirements
(TMC Section 18.28.260. B. 5. b
$591
$602
+ TF
Design Review (TMC Section 18.60.030)
Administrative
$2,236
$2,281
+ TF
Public Hearing
$4,006
$4,086
+ TF
Major Modification
$1,370
$1,397
+ TF
Minor Modification
$622
$635
+ TF
Parking Variances and Special Permissions
Administrative Parking Variance
(Type 2 —TMC Section 18.56.140)
$591
$602
+ TF
Parking Variance
(Type 3 —TMC Section 18.56.140)
$969
$988
+ HE
+ TF
Parking Standard for use not specified
(TMC 18.28.250 D. 4. d.1 and TMC 18.56. 100)
$579
$591
+ TF
Residential Parking Reduction
(TMC Section 18.56.065)
$591
$602
+ TF
Shared, covenant, Complementary Parking
Reduction (TMC Section 18.56.070)
$591
$602
+ TF
Parking Lot Restriping
(TMC Section 18.56.120)
$591
$602
+ TF
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Plus
2015
2016
Hearing
Plus
Decision Type
Fee
Fee
Examiner
Technology
Fees
Fee (TF)
Variances, Special Permissions and Site Plan Review
Variances
$2,825
$2,882
+ HE
+ TF
(TMC Section 18.72)
Environmentally Sensitive Areas Deviation,
$1,495
$1,525
+ TF
Buffer Reduction (TMC Chapter 18.45)
Reduced fee for LDR homeowners, no
$591
$602
associated short plat
Reasonable Use Exception
$2,991
$3,050
+ HE
+ TF
(TMC Section 18.45.180)
Exception from Single Family Design Standard
$591
$602
+ TF
(TMC Section 18.50.050)
Special Permission Cargo Container
$591
$602
+ TF
(TMC Section 18.50.060)
Landscape Perimeter Averaging
$591
$602
+ TF
(TMC Section 18.52.060)
Tree and Landscape Modification Permit and
$105
$107
+ TF
Exceptions (TMC Chapter 18.54
Lot Creation and Consolidation
Boundary Line Adjustment
$1,677
$1,710
+ TF
(TMC Chapter 17.08)
Lot Consolidation
$622
$635
+ TF
(TMC Chapter 17.08)
Short Plat (2-4 lots)
$3,817
$3,893
+ TF
(TMC Chapter 17.12)
Short Plat (5 -9 lots)
$4,344
$4,431
+ TF
(TMC Chapter 17.12)
Subdivision:
Preliminary Plat (10+ lots)
$4,986
$5,085
+ HE
+ TF
(TMC Section 17.14.020)
Final Plat (10+ lots)
$2,991
$3,050
+ TF
(TMC Section 17.12.030
Binding Site Improvement Plan
$3,817
$3,893
+ TF
(TMC Chapter 17.16)
Planned Residential Development:
Administrative (TMC Section 18.46. 110)
$2,173
$2,216
+ TF
Public Hearing (TMC Section 18.46. 110)
$4,986
$5,085
+ TF
Minor Modification (TMC Section 18.46.130)
$591
$602
+ TF
Major Modification (TMC Section 18.46.130)
$2,425
$2,473
+ TF
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Decision Type
2015
Fee
2016
Fee
Plus
Hearing
Examiner
Fees
Plus
Technology
Fee F
Wireless Communication Facility (TMC Chapter 18.58.050)
Minor (Type 1)
$591
$602
+ TF
Administrative (Type 2)
$1,677
1,710
+ TF
Major or Height Waiver (Type 3)
$3,352
$3,419
+ HE
+ TF
SEPA and Environmental
Checklist
$1,709
$1,743
+TF
SEPA EIS
$2,991
$3,050
+ TF
SEPA Planned Action
$591
$602
+ TF
SEPA Addendum
$591
$602
+ TF
SEPA Exemption Letter
$348
$355
+ TF
Sensitive Area Master Plan Overlay
(TMC 18.45.160)
$4,986
$5,085
+ TF
Shoreline Permits
Substantial Development Permit: (TMC Chapter 18.44)
Project value: $5,000-$10,000
$1,181
$1,205
+ TF
$10,001 - $50,000
$2,763
$2,818
+ TF
$50,001 - $500,000
$4,406
$4,495
+ TF
More than $500,000
$5,588
$5,699
+ TF
Permit Exemption Letter, Shoreline
$243
$248
+ TF
Conditional Use Permit, Shoreline
(TMC 18.44.050)
$3,879
$3,957
+ HE
+ TF
Shoreline Tree Permit
(TMC Chapter 18.44
$105
$107
+ TF
Shoreline Environment Redesignation
$2,991
$3,050
+ TF
Noise Variance (TMC Section 8.22.120)
Type I
$485
$494
+ TF
Type II
$654
$667
+ TF
Type III
$1,454
$1,483
+ HE
+ TF
Use Permits
Conditional Use Permit
(TMC Section 18.64.020)
$3,879
$3,957
+ HE
+ TF
Unclassified Use Permit
(TMC Chapter 18.66)
$4,986
$5,085
+ TF
TSO Special Permission Use
(TMC Section 18.41.060)
$969
$988
+ HE
+ TF
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Decision Type
2015
Fee
2016
Fee
Plus
Hearing
Examiner
Fees
Plus
Technology
Fee F
Comprehensive Plan Changes (TMC Chapter 18.84)
Rezone (Map Change)
$3,489
$3,559
$129.50 for the first $2,000, plus $19.60 for each additional $1,000, or
+ TF
Comprehensive Plan Amendment
$3,988
$4,068
+ TF
Zoning Code Text Amendment
$4,533
$4,624
fraction thereof, to and including $100,000 + Technology Fee
+ TF
Miscellaneous Services and Charges
Development Agreement
$1,994
$2,034
$4,906.30 for the first $500,000, plus $7.00 for each additional $1,000, or
+ TF
Code Interpretation (TMC Section 18.90.010)
$348
$355
+ TF
Zoning Verification Letter
$348
$355
thereof + Technology Fee
+ TF
Legal Lot Verification
$559
$570
+ TF
Preapplication Meeting
$485
$494
+ TF
Mailing Fee to Generate Labels, per project
$458
$467
Public Notice Mailing Fee per address for each
mailing
$1
$1
Section 5. Building permit fees will be charged according to the following
schedule:
BUILDING PERMIT FEE SCHEDULE
Total Valuation
Building Permit Fees
$1 to $500
$65.00 + Technology Fee
$501 to $2,000
$65.00 for the first $500, plus $4.30 for each additional $100, or fraction
thereof, to and including $2,000 + Technology Fee
$2,001 to $25,000
$129.50 for the first $2,000, plus $19.60 for each additional $1,000, or
fraction thereof, to and including $25,000 + Technology Fee
$25,001 to $50,000
$600.40 for the first $25,000, plus $15.30 for each additional $1,000, or
fraction thereof, to and including $50,000 + Technology Fee
$50,001 to $100,000
$983.25 for the first $50,000, plus $10.60 for each additional $1,000, or
fraction thereof, to and including $100,000 + Technology Fee
$100,001 to $500,000
$1,511.60 for the first $100,000, plus $8.50 for each additional $1,000, or
fraction thereof, to and including $500,000 + Technology Fee
$500,001 to $1,000,000
$4,906.30 for the first $500,000, plus $7.00 for each additional $1,000, or
fraction thereof, to and including $1,000,000 + Technology Fee
$1,000,001 to $5,000,000
$8,443.25 for the first $1,000,000, plus $4.70 for each additional $1,000,
or fraction thereof, to and including $5,000,000 + Technology Fee
$5,000,001 and up
$27,243.25 for the first $5,000.000, plus $4.50 for each $1,000 or fraction
thereof + Technology Fee
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n
A.4-Non- Structural Plan Review Fee. A non - structural plan review fee shall be
paid at the time of submitting plans and specifications for review. The non - structural
plan review fee shall be 65% of the calculated permit fee as set forth in the permit fee
schedule. The non - structural plan review fee specified herein is a separate fee from the
permit fee and is in addition to the permit fee.
B.2-.Structural Plan Review Fee. Where a structural plan review is deemed
necessary, a structural plan review fee shall be charged. The structural plan review fee
shall be 35% of the calculated non - structural plan review fee.
C. Southcenter Building Permit Fee Deferral Program
1. In order to encourage residential and mixed -use development within the
Tukwila Urban Center Transit - Oriented Development (TUC -TOD) zoning district, fee
deferral of all or a portion of a required building permit fee for a project may be -granted
provided the following criteria are met:
a. The property owner must submit a technically - complete building permit
application clearly depicting the project for which the fee deferral agreement will apply
and pay all required plan review fees. The building permit fee being considered for
deferral must be greater than $300,000.
b. Before issuance of the building permit, the property owner must submit
a written letter requesting that the building permit fee be deferred. The City will not
consider any fee deferral request from a tenant, contractor, or other third party. The
request must be submitted to the City no later than December 31, 2016. A parcel is
only eligible to have one fee deferral granted for one building permit for a project.
c. The project must be located west of the Green River and be within the
TUC -TOD zoning district per Figure 18 -16, District Map, in Title 18 of the Tukwila
Municipal Code.
d. The project must include at least 100 residential units and at least 50
percent of the gross building square footage must be used for residential purposes. For
purposes of this section the term "residential" does not include hotels, motels, bed and
breakfasts or other similar transient lodging accommodations.
e. A fee deferral agreement between the City and the property owner
must be executed prior to issuance of the building permit. The Mayor is authorized to
execute such agreements on behalf of the City. Provisions must be included in the
agreement to secure payment of the deferred building permit fee, plus accrued interest,
in the case of default by the property owner. Provisions may include, but are not limited
to a lien against subject property, letter of credit and /or surety bond.
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2. The Mayor may consider other relevant information in approving the fee
deferral request including, but not limited to, the ability of the property owner to satisfy
the obligations of the agreement and pay the deferred building permit fee. The Mayor is
authorized to include any other provisions or requirements in the deferral agreement
that he /she deems necessary to meet the intent of this resolution, to protect the financial
interest of the City, and /or to protect the public welfare.
The buildina aermit fee may be deferred up to 24 months after issuance of
the building permit and must be paid before the City will issue a certificate of occupancy
for the building.
4. Interest shall be charged on the deferred building permit fee. The interest
rate shall be the same as the stated interest rate on the Two Year US Treasury Note on
the date the building permit is issued (or closest date thereof). Interest shall be
compounded annually and shall begin to accrue upon issuance of the building permit.
5. The building permit fee deferral agreement may be consolidated with any
agreements to defer transportation, fire, or park impact fees as outlined in TMC
Chapters 9.48, 16.26, and 16.28.
6. Only the building permit fee due at time of issuance of the building permit is
eligible for deferral. All other fees including, but not limited to, building permit plan
review fees, utility connection fees, and fees related to mechanical, plumbing, land use,
sign, and public works fees are due in the normal course of business, as typically
charged to other applicants.
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Section 6. Mechanical permit fees will be charged according to the following
schedule:
MECHANICAL PERMIT FEE SCHEDULE
Valuation of
$32.50 + Technology Fee
Work (Total
Mechanical Permit Fee
Contract Amount
For each additional fixture
$14.00 + Technology Fee
$32.50 for issuance of each permit (base fee) + Technology Fee
$250 or less
$65.00 + Technology Fee
$251 to $500
$65.00 for first $250, plus $7.83 for each $100 or fraction thereof, to
$14.00 + Technology Fee
and including $500 + Technology Fee
$501 to $1,000
$84.60 for the first $500, plus $8.70 for each $100 or fraction thereof, to
$29.10 + Technology Fee
and including $1,000 + Technology Fee
$1,001 to $5,000
$128.10 for the first $1,000, plus $9.65 for each $1,000 or fraction
$14.00 + Technology Fee
thereof, to and including $5,000 + Technology Fee
$5,001 to $50,000
$166.70 for the first $5,000, plus $10.05 for each $1,000 or fraction
thereof, to and including $50,000 + Technology Fee
$50,001 to $250,000
$639.20 for the first $50,000, plus $8.40 for each $1,000 or fraction
thereof, to and including $250,000 + Technology Fee
$250,001 to $1,000,000
$2,319.20 for the first $250,000, plus $7.40 for each $1,000 or fraction
thereof, to and including $1,000,000 + Technology Fee
$1,000,001 and up
$7,869.20 for the first $1,000,000, plus $6.70 for each $1,000 or
fraction thereof + Technology Fee
Section 7. Plumbing permit fees will be charged according to the following
schedule:
PLUMBING PERMIT FEE SCHEDULE
Permit Issuance — Issuance of each permit (base fee)
$32.50 + Technology Fee
Unit Fee Schedule (in addition to base fee above:
For one plumbing fixture (a fixture is a sink, toilet, bathtub, etc.)
$65.00 + Technology Fee
For each additional fixture
$14.00 + Technology Fee
For each building sewer and each trailer park sewer
$24.80 + Technology Fee
Rain water system — per drain (inside building)
$14.00 + Technology Fee
For each water heater and /or vent
$14.00 + Technology Fee
For each industrial waste pretreatment interceptor, including its
trap and vent, except for kitchen type grease interceptors
$28.00 + Technology Fee
For each grease interceptor for commercial kitchens
$29.10 + Technology Fee
For each repair or alteration of water piping and /or water treating
equipment, each occurrence
$14.00 +Technology Fee
For each repair or alteration of drainage or vent piping, each
fixture
$14.00 + Technology Fee
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PLUMBING PERMIT FEE SCHEDULE (continued)
For each medical gas piping system serving one to five
$82.00 +Technology Fee
inlets /outlets for a specific as
$81.90 + Technology Fee
For each additional medical gas inlets /outlets
$16.20 + Technology Fee
For each lawn sprinkler system on any one (1) meter including
$29 10 + Technology Fee
backflow protection devices therefor.
For atmospheric -type vacuum breakers not included in lawn
sprinkler backflow protection:
1 to 5 .... $14.00 + Technology Fee
Over 5... $14.00 for first 5 plus $3.25 for each additional
+ Technology Fee
For each backflow protective device other than atmospheric type
vacuum breakers:
2 -inch diameter and smaller... $29.10 + Technology Fee
Over 2 -inch diameter: ............ $32.25 + Technology Fee
Section 8. Fuel Gas Piping permit fees will be charged according to the following
schedule:
FUEL GAS PIPING PERMIT FEE SCHEDULE
1. Permit Issuance:
For issuing each permit (base fee): ($0 if permit is in conjunction with $32.50 + Technology Fee
a plumbing permit for an appliance with both plumbing and gas
connection.
2. Unit Fee Schedule (in addition to item in subparagraph 7.1.):
For each gas piping system of one to five outlets $65.00 + Technology Fee
For each additional gas piping system outlet, per outlet $14.00 + Technology Fee
Section 9. Electrical permit fees will be charged according to the following
schedule:
ELECTRICAL PERMIT FEE SCHEDULE
1. NEW SINGLE - FAMILY DWELLINGS
New single - family dwellings (including a garage)
$152.85 + Technology Fee
Garages, pools, spas and outbuildings
$81.90 + Technology Fee
Low voltage systems
$59.85 + Technology Fee
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ELECTRICAL PERMIT FEE SCHEDULE (continued)
2. SINGLE - FAMILY REMODEL AND SERVICE CHANGES
Service change or alteration-no added /altered circuits
$81.90 + Technology Fee
Service change $81.90 with added /altered circuits, plus $11.55 for
$81.90 + Technology Fee
each added circuit maximum permit fee $152.85
$86.25 + Technology Fee
Circuits added /altered without service change (includes up to 5
$54.60 + Technology Fee
circuits
$65.00 for the first $250 plus $4.30 for each $100 or fraction thereof, to and
Circuits $54.60 added /altered without service change (more than
$54.60 + Technology Fee
5 circuits); $7.65 for each added circuit (maximum permit fee $98.70
$97.00 for the first $1,000 plus $21.60 for each $1,000 or fraction thereof,
+ Technology Fee
to and including $5,000 + Technology Fee
Meter /mast repair
$68.25 + Technology Fee
Low voltage systems
$59.85 + Technology Fee
3. MULTI - FAMILY AND COMMERCIAL (including low voltage)
Valuation of
$65.00 + Technology Fee
Work (Total
Permit Fee
Contract Amount)
$86.25 + Technology Fee
$250 or less
$65.00 + Technology Fee
$251 - $1,000
$65.00 for the first $250 plus $4.30 for each $100 or fraction thereof, to and
• Each concession fee
including $1,000 + Technology Fee
$1,001 - $5,000
$97.00 for the first $1,000 plus $21.60 for each $1,000 or fraction thereof,
Inspections or plan review not specified elsewhere (one -half hour
minimum). Safety inspections, plan revisions.
to and including $5,000 + Technology Fee
$5,001 - $50,000
$183.30 for the first $5,000 plus $17.70 for each $1,000 or fraction thereof,
Disaster recovery emergency repair permit (residential structures
only)
to and including $50,000 + Technology Fee
$50,001 - $250,000
$979.15 for the first $50,000 plus $12.90 for each $1,000 or fraction thereof,
to and including $250,000 + Technology Fee
$250,001 - $1,000,000
$3,567.20 for the first $250,000 plus $9.15 for each $1,000 or fraction thereof,
to and including $1,000,000 + Technology Fee
Over $1,000,000
$10,440.70 plus 0.5% of cost over $1,000,000 + Technology Fee
4. MISCELLANEOUS ELECTRICAL PERMIT FEES
Temporary service (residential)
$65.00 + Technology Fee
Temporary service /generators
$80.90 + Technology Fee
Manufactured /mobile home parks and RV park sites, each service
and feeder
$86.25 + Technology Fee
Carnivals:
• Base fee
$80.60 + Technology Fee
• Each concession fee
$10.80 + Technology Fee
• Each ride and generator truck
$10.80 + Technology Fee
Inspections or plan review not specified elsewhere (one -half hour
minimum). Safety inspections, plan revisions.
$66.50 /hour
Adult family home inspection (paid at the time of scheduling the
inspection)
$66.50
Disaster recovery emergency repair permit (residential structures
only)
$20.00
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Section 10. Other inspections and fees will be charged according to the following
schedule:
OTHER INSPECTIONS AND FEES
Inspections outside of normal business hours (three hour minimum charge)
$100.00 /hour
Re- inspection fee
$66.50 /hour
Inspection for which no fee is specifically indicated— investigations or safety
$66.50 /hour
inspections
Additional plan review required by changes, additions, or revisions to approved
$66.50 /hour
plans minimum charge one -half hour
Work commencing before permit issuance shall be subject to an investigation fee
100% of the permit
equal to 100% of the permit fee.
fee
Plan review fee — Mechanical, Plumbing, Fuel Gas Piping and Electrical: The fee
for review shall be 25% of the total calculated permit fee. The plan review fee is a
separate fee from the permit fee and is required when plans are required in order
to document compliance with the code.
Work covered without inspection or work not ready at the time of inspection may
be charged a re-inspection fee of $66.50.
Expired permit final – includes two inspections
$133.00
Expired permit final – each additional inspection
$66.50
Minor residential remodel plan review and permit (projects up to $20,000)
$20.00
Section 11. Effective Date. This resolution and the fee schedules contained
herein shall be effective as of October 20, 2015.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2015.
ATTEST /AUTH E NTI CATE D:
Christy O'Flaherty, MMC, City Clerk Kate Kruller, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Rachel B. Turpin, City Attorney
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36
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
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.
37
INFORMATIONAL MEMO
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.
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.
38 W:12015 Info Mennos\WashPlacefeeDeferral.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.
Impact 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.
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39
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 Memos\WashPlacefeeDeferral.doc
40
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 Memos\WashPlacefeeDeferral.doc
40
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 policy'.
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.
3 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.
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41
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 collectedb. 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 20th the stated interest rate was 1.90 %.
M2015 Info Memos\WashPlacefeeDeferral.doc
42
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.
W12015 Info Memos\WashPlacefeeDeferral.doc
43
MA
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
May 5, 2095 — 5:30 p.m.; Hazelnut Conference Room
City of Tukwila
Finance and Safety Committee
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.
1. 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
EN
Finance & Safety Committee Minutes May 5, 2015 - Page 2
or the general fund. Establishing g fee deferral program would require code amendment, and
staff is seeking Council direction on this issue prior to the development of any draft
ordinances.
d�
Committee members asked clarifying questions about the information presented. Committee
Chair HouQardy asked Omar and Christine Lee for input, and they described the financial
difficulties of project like this in Tuhvv|a, which has significantly |ovvar 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 abahad continued enthusiasm for this project but acknowledged the
importance of fairness, noting the City's inability togive special treatment b} 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
Counoi|, 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 mt this time. They requested additional City Attorney input into the developer's request
for fee reductions. UNANIMOUS APPROVAL TO FORVVAFl[3 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 Bevvan*^ 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 partnership between law enforcement, ottornay, and service
organizations to make progress in this area via education and intervention programs.
UNANIMOUS APPROVAL. FORWARD TO MAY 11.2O15COMMITTEE OF THE WHOLE'
Ill. 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 ifitwere to be rebid.
Meeting adjourned at 7:20 p.m.
Next meeting: Tuesday, May 19, 2015 - 5:30 p.m. - Hazelnut Conference Room
4� ) (�, q
Committee Chair Approval
Minutes by LH
M.
May 11, 2015
Dear Honorable Councilmembers:
We respectfully asking the Councilmembers to consider a different method in
calculating for the following two fees:
1) Interest rate for deferral fee: Use 3 year Treasury bill rate instead of 10 year.
2) Fire and Park Impact Fee: Use actual square footage instead of unit count.
Based on professional market studies, we have revised our plans according to
their recommendations per market demand in the past couple years:
Year Total Units Total Sq. Ft.
2012: 252 220,000+
2013: 282 , 220,000+
2014: 371 196,376
Currently, the fire impact fee is based on $1200 per unit and park impact fee is
based on $1398 per unit.
The reason for our request is because Washington Place is an early pioneer
project. There is really no established comps for the rental market. According to our
studies (attached market analysis), the comparable market rent we projected for this
project is about 50% less than the City of Bellevue and City of Seattle. However it is
about 60 -80% higher than the current City of Tukwila rentals. Therefore, it will take a
longer time for profitability on this project. We respectively request you to encourage
the City staff to review the above current methods.
I have made several phone calls for information regarding impact fees. And discovered
that several cities do not have impact fees such as Kent, Seatac and Bellevue. City of
Renton will waive all impact fees, plus 10 year property tax waiver for us to develop in
their City. We have chosen the City of Tukwila, because we believe in this City. We are
not asking you to waive the fees, but to use a calculation method more consistent with
other local jurisdictions. Thank you for your consideration.
Best Regards,
aar and Christine Lee
47
Apr -15
Rental Rates Comparison
Market
Property
Studio
1 Bedroom
2 Bedroom
Built
Rent /Unit
Unit Size
$/ SQ.FT
Rent /Unit
Unit Size
$/ SQ.FT
Rent /Unit
Unit Size
$/ SQ.FT
AirMark Residence
2017
$ 789
322
$ 2.45
$ 1,195
556
$ 2.15
$ 1,494
854
$ 1.75
Seattle
The Wave
2014
$ 1,645
428
$ 3.84
$ 2,360
616
$ 3.83
$ 2,202
847
$ 2.60
Via 6
2013
$ 2,070
500
$ 4.14
$ 1,860
523
$ 3.56
$ 2,925
876
$ 3.34
Dimension
2014
$ 1,745
451
$ 3.87
$ 1,945
538
$ 3.62
$ 2,975
971
$ 3.06
Bellevue
Elements Too
2010
$ 1,445
429
$ 3.37
$ 1,600
568
$ 2.82
$ 2,180
894
$ 2.44
Avalon Towers
2010
$ 1,635
513
$ 3.19
$ 2,080
710
$ 2.93
$ 2,390
968
$ 2.47
Soma Towers
2014
$ 1,450
400
$ 3.63
$ 1,750
700
$ 2.50
$ 2,400
1000
$ 2.40
Tukwila
Terrace Apts
$ 820
540
$ 1.52
$ 915
. 750
$ 1.22
$ 1,070
960
$ 1.11
Foster Creek Apts
N/A
N/A
N/A
$ 800
720
$ 1.11
$ 950
989
$ 0.96
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Finance Director
BY: Vicky Carlsen, Deputy Finance Director
DATE: September 30, 2015
SUBJECT: Second Quarter 2015 Cash & Investment Report
ISSUE
The second quarter Investment Report is included with this memorandum and is discussed below.
BACKGROUND
City funds are invested to earn a reasonable return while preserving principal and allowing
sufficient liquidity to meet the City's operating needs. To achieve these objectives investments
are diversified by type, by financial institution, and by maturities in compliance with the City
Investment Policy.
DISCUSSION
Portfolio Components
At June 30, 2015, the portfolio totaled $52.5 million comprised of $9.4 million in cash and cash
equivalents and $13.1 in longer term investments. The portfolio balance increased by $8.7 million
from March 31, 2015 balance of $43.8 million. Property taxes are received in the 2nd and 4th
quarters. Additionally, bond proceeds of $5.8 million were received in April for the Arterial Street
fund.
In April, the City purchased a Federal Home Loan Bank agency investment in the amount of $1
million. It was purchased on April 16, 2015, will mature on March 16, 2018, and has a 1.30%
yield to maturity. The City also purchased a Federal Home Loan Mortgage Corp agency
investment in May for $1 million with a 1.25% yield to maturity. This investment will mature in
May 2018.
The investments mentioned above increase the percentage of the City's longer -term investments
and increases portfolio yield because of the higher interest rate on the agency. Since they are
longer -term investments, one was placed in the contingency fund where the likelihood of
accessing the available cash in the next few years is remote. The other agency was placed in
the Arterial Street fund. The purchase of agencies increases the diversity of the portfolio.
Portfolio Performance
The portfolio weighted average yield on June 30, 2015, was .44 %. Considering the portfolio's
weighted average maturity was 1.0 years, and the yield on the cash & cash equivalent accounts
was .12 %, the portfolio yield of 0.44% is still relatively favorable. The yield has been sustained
by the 3.19% average yield on the municipal bond investments, the .40% yield on the certificate
of deposits, the .97% yield on the agencies, and the .45% earnings credit on the US Bank
depository account.
.•
INFORMATIONAL MEMO
Page 2
Investment income through the second quarter 2015 for cash equivalents and certificates of
deposits is $151,241 plus $70,882 of accrued municipal bond and agencies interest for a total of
$222,123 against a prorated budget of $93,544
Not included in the portfolio is interest earned from the operating and capital loans to the MPD.
The operating loan is being repaid on a monthly basis and will be paid in full by May 2023. Interest
earned on the loan through June 2015 is $9,187. The capital loan is being repaid semi - annually
and will be paid in full by December 2022. Interest accrued June 2015 is $8,127. Attached to the
investment report are amortization schedules for both loans to the MPD.
Policy Compliance and Liquidity Analysis
As of the end of the 2nd quarter, the portfolio profile is well within the range of all the investment
policy parameters. There is currently a healthy mix of investments with a range of maturity dates.
Current investments allow for adequate cash flow requirements.
Fund Cash & Investment Balances
The general fund balance shows an increase of $2.3 million from March 31. As mentioned earlier,
property tax revenue is received during the 2nd and 4th quarters.
The arterial street fund increased $7.3 million due to receipt of debt proceeds of $5.8 million in
April and grant revenue received to reimburse grant related expenditures.
Debt service funds show an increase, due to quarterly transfers in from the general fund for debt
service payments.
Investment Environment
Short term interest rates continue to remain low. Economic activity is expanding at a moderate
pace, household spending and business fixed investment has also been moderately increasing,
however, net exports have been soft. The labor market continues to show improvement with solid
job gains and declining unemployment. However, recent global economic and financial
developments in China and other emerging markets may restrain economic activity and could put
further downward pressure on inflation in the near term.
At this time, it is unclear when interest rates will be increased.
The portfolio will continue to be managed to take advantage of investment opportunities as they
arise.
RECOMMENDATION
Presentation is for information only.
ATTACHMENTS
Cash and Investment Report
Policy Compliance & Liquidity Analysis
Cash and Investment Balances by Fund
Treasury Rates and Yield Curves
Amortization Schedule — MPD Operating Loan
Amortization Schedule — MPD Capital Loan
50
CITY OF TUKWILA
CASH & INVESTMENT REPORT
June 30, 2015
INVESTMENTS
Certificates of Deposit
Bank of Washington
Certificate of Deposit
4/1/2015
5/1/2016
(a)
250,000
(c)
(d)
Rating
Sound Community Bank
Purchase
Maturity
Term Par
Book
Yield to
Annualized
Agency / Issuer Moodys
Investment Type
Date
Date
Yrs Value
Balance
Maturity
Return
CASH & CASH EQUIVALENTS
0.50%
223
CERTIFICATES OF DEPOSIT -- TOTAL
3.37%
14,501
2017, ave 5.5 years
2.7
US Bank
Depository
Various
(b)
$11,848,459
$11,848,459
(e)
28,998
Washington State Convention
Aa3
Lodging Tax Bonds
11/30/2010
7/1/2016
Federal Home Loan Mtg Corp
0.45%
4/10/2014
Washington State Treasurer
LGIP Investment Pool
Various
(b)
13,438,497
13,438,497
(f) 0.16%
4,362
Columbia Bank
Money market
Various
(b)
14,128,959
14,128,959
(f)
15,068
US agency
6/6/2014
8/23/2017
3.2
1,000,000
998,775
0.23%
10,008
Total Cash & Cash Equivalents
US agency
3/16/2015
3/16/2018
39,415,914
39,415,914
0.12%
48,427
INVESTMENTS
Certificates of Deposit
Bank of Washington
Certificate of Deposit
4/1/2015
5/1/2016
1.1
250,000
250,000
0.08%
499
Sound Community Bank
Certificate of Deposit
3/4/2014
3/4/2017
3.0
3,000,000
3,161,242
0.85%
13,365
Northwest Bank
Certificate of Deposit
12/20/2014
12/20/2015
1.0
250,000
250,000
0.50%
223
CERTIFICATES OF DEPOSIT -- TOTAL
3.37%
14,501
2017, ave 5.5 years
2.7
3,500,000
3,661,242
0.40%
14,087
Agencies
Washington State Convention
Aa3
Lodging Tax Bonds
11/30/2010
7/1/2016
Federal Home Loan Mtg Corp
US agency
4/10/2014
5/13/2016
2.1
2,000,000
2,001,867
0.50%
10,000
( FHLMC)
UW Biomedical Center
Aal
Revenue Bonds
FNMA
US agency
6/6/2014
8/23/2017
3.2
1,000,000
998,775
1.00%
10,008
FHLB
US agency
3/16/2015
3/16/2018
3.0
1,000,000
1,000,000
1.27%
12,700
FHLB
US agency
4/9/2015
4/9/2018
3.0
1,000,000
1,000,000
1.30% M
13,000
FHLMC
US agency
5/29/2015
5/25/2018
3.0
1,000,000
1,000,000
1.25% M
12,500
TOTAL AGENCIES
2.7
6,000,000
6,000,642
0.97%
58,208
Taxable Municipal Bonds
City of Marysville, sinking 2014
Al
LTGO Refunding
11/23/2010
12/1/2017
5.5
415,000
430,309
3.37%
14,501
2017, ave 5.5 years
Washington State Convention
Aa3
Lodging Tax Bonds
11/30/2010
7/1/2016
5.6
500,000
502,176
3.60%
18,078
Center Facility
UW Biomedical Center
Aal
Revenue Bonds
12/14/2010
7/1/2017
6.6
500,000
502,655
4.05%
20,358
UW Biomedical Center
Aal
Revenue Bonds
12/14/2010
7/1/2019
8.6
500,000
503,302
4.70%
23,655
Douglas County, ESD, sinking
Aal
UTGO
12/23/2010
12/1/2020
8.9
1,135,000
1,147,313
4.55%
52,203
2018 -2020, ave 9 yrs
Port of Anacortes
Al
LTGO
12/17/2010
9/1/2020
9.7
340,000
332,226
5.00%
16,611
TOTAL MUNICIPAL BONDS
7.7
3,390,000
3,417,982
3.19%
109,055
Total Investments
4.0
12,890,000
13,079,866
1.39%
181,350
TOTAL CASH, CASH EQUIVALENTS & INVESTMENTS
1.0
$ 52,305,914
$ 52,495,780
1 0.44%
$ 229,777
Current Portfolio Yield
(a) On calleable bonds, term is calculated to final maturity even though call date may occur first; term of liquid investments is one
day; on sinking fund bonds, average maturity is used to calculate term.
(b) No fixed maturity, funds are available within one day. Percent of Cash & Investment Portfolio
(c) Yield to Maturity represents average rate for the year for various investment vehicles. Cash
(d) Annualized Return represents actual earnings for the fiscal year for bonds. Agen(
(e) Represents earning credit from US Bank. City earns interest up to the amount of fees. 125
(f) Represents rate in effect for period ending this report.
(g) CD that matured in March 2014 had a higher interest rate than the current CD; which increases the
the annualized return above the current CD rates.
(h) Annualized Return represents actual earnings through current reporting period Money
Market
29%
LGIP
28%
7`0
51
CITY OF TUKWILA
Policy Compliance & Liquidity Analysis
CASH & INVESTMENT REPORT
June 30, 2015
Liauiditv Reauirements and Funds Available for Investing:
Funds immediately available $ 39,415,914
Restrictions & designations:
Operating liquidity (a) 14,000,000
Liquidity threshold 14,000,000
Funds available for longer term investing 25,415,914
(a) Represents largest one month decline in portfolio balance over the most recent 36 month period doubled; or the
equivalent of a 100% cushion.
As of Report Date
Portfolio
Available
Available
Available in
Financial Institution Diversification
Portfolio
Within 1 Year
Within 5
5 - 10 Years
Liquidity Analysis & Maturity Diversification
Amount
22.6%
Years
Yes
Funds immediately available
$ 39,415,914
$ 39,415,914
$ 39,415,914
Yes
Fixed Maturity Investments, maturing in:
14,128,959
26.9%
50.0%
Yes
0 -90 days after Report Date
-
6.0%
50.0%
Yes
91 -180 days after Report Date
250,000
18.9%
50.0%
Yes
Investments maturing in 1 year or less
2,501,867
2,501,867
2,501,867
Investments maturing in 1 -3 years
8,595,156
8,595,156
Policy
Investments maturing in 3 -5 years
503,302
% of Total
503,302
Met?
Investments maturing in 5 -7 years
1,479,540
22.6%
insured by PDPC
1,479,540
Investments maturing in 7 -10 years
-
25.6%
75.0%
-
Investments maturing in more than 1 year
10,577,998
26.9%
insured by PDPC
Yes
and less than 10 years.
3,661,242
7.0%
insured by PDPC
Yes
TOTALS
$ 52,495,780
$ 41,917,782
$51,016,240
$ 1,479,540
Municipal Bonds
3,417,982
80%
97%
4%
Total
52,495,780
Liauiditv Reauirements and Funds Available for Investing:
Funds immediately available $ 39,415,914
Restrictions & designations:
Operating liquidity (a) 14,000,000
Liquidity threshold 14,000,000
Funds available for longer term investing 25,415,914
(a) Represents largest one month decline in portfolio balance over the most recent 36 month period doubled; or the
equivalent of a 100% cushion.
Portfolio
POLICY
Policy
Financial Institution Diversification
Amount
% of Total
MAXIMUM
Met?
US Bank
$ 11,848,459
22.6%
50.0%
Yes
Washington State Treasurer
13,438,497
25.6%
75.0%
Yes
Columbia Bank
14,128,959
26.9%
50.0%
Yes
Sound Community Bank
3,161,242
6.0%
50.0%
Yes
Other financial institutions
9,918,624
18.9%
50.0%
Yes
Total
$ 52,495,780
100.0%
Portfolio
POLICY
Policy
Investment Mix
Amount
% of Total
MAXIMUM
Met?
Depository
11,848,459
22.6%
insured by PDPC
Yes
State Investment Pool
13,438,497
25.6%
75.0%
Yes
Money market
14,128,959
26.9%
insured by PDPC
Yes
Certificate of Deposit
3,661,242
7.0%
insured by PDPC
Yes
US Agency
6,000,642
11.4%
75.0%
Yes
Municipal Bonds
3,417,982
6.5%
no limit specified in policy
Yes
Total
52,495,780
100.0%
Weighted Average Maturites:
Years
Performance Analysis
Certificates of deposit
2.7
Current portfolio yield
0.44%
Benchmarks:
Municipal bonds
7.7
6 month treasury
0.27%
Total Investments
4.0
2 year treasury
0.74%
Total Portfolio
1.0
Local Govt Invst Pool
(f) 0.16%
POLICY MAXIMUM 3.5
Policy Met? Yes
Note: Cash and cash equivalents are available within one day and are factored
into the Total Portfolio weighted average maturity.
52
CITY OF TUKWILA
Cash &Unvestmnemt Balances By Fund and Fund Group
CASH & INVESTMENT REPORT
June 30, 2015
Funds not included in the Grand Total are the fiduciary funds and market value adjustment. However, these balances Nn,4uu.onr are included m the investment
Balances
Balances
Balances
Balances
Balances
Fund Group
6/30/15
6/30/14
6/30n3
6/30/12
e30/11
General
uoo
GENERAL
8211831
General Total
8,211,831
6,545,525
944,197
3,277,604
3,181,257
_'Special Revenue
101
HorsmworsL TAX
378.109
433.781
440.090
453.083
695.e76
105
oomnmaswov
5.777.260
1.365.235
1.0*5.854
919.276
670.123
107
FIRE EQUIP. CUM. RESERVE
875,506
588,392
4.595.453
10.269.119
109
SEIZURE
48952
1,457,930
1 4
Special Revenue Total
-DRUG
6,204,321
8,438,734
3,535,603
7,425,741
13,091,825
OoLuServioo
000
DEBT SERVICE
e08.61*
'
206
L.|.GUxnAwTEE
669.147
e68.997
'
207
LIMITED TAX Go. BONDS 1000
-
13.246
cun
LIMITED TAX Go. BONDS 2noo
'
rn
70
ooe
LIMITED TAX a». BONDS 2ono
1
1
3.012.901
3,302,738
(1.592)
210
LIMITED TAX o.o. REFUNDING eouo
1e5
1e5
(on)
000
(1.852)
211
LIMITED TAX o.u. REFUNDING uono
315.*1e
416
(84)
5.105
(18.148)
212
Lrao SCORE BONDS
u
1.453
126
ror
(146)
213
cTan SCORE a/o AMER BONDS
-
oos
616
(1.392)
214
Lruuuo1n Series x
192.676
5.e10
(614)
ar
or
215
LrGOou10 Series a
'
4.612
4.611
17
216
VALLEY uom Refunding bonds :m10
115.194
74
1*
14
81*
217
LIMITED TAX oO BONDS REFUNDING
203,039
214
(xyN
'
mm
LID #33
120,971
42,591
Debt Service Total
1,825,256
719,850
3,017,595
3,314,751
(89947)
Capital Project
103
STREET
1.022.252
1.365.235
1.045.854
919.276
670.123
104
ARTERIAL STREET
7,338,446
875,506
588,392
4,595,453
10.269.119
301
LAwoAuo esom PARK osvLpmmr
1,565,47*
1.159,087
1,088.513
1,665,327
4.787.800
uuc
FACILITY REPLACEMENT
1.432.223
1.967.648
2.103.024
2.01e.0e9
2.051.032
303
GENERAL sOVenwMNTIMPROVEMENTS
453.915
404.809
804.988
584.287
1,310.709
304
FIRE IMPACT FEeS
sones2
438,317
359,809
316591
165
Capital Project Total
12,333,271
6,210,602
5,990,581
10,100,032
19,254,115
401
wxrsR
5,007,023
5.698.*14
5.306.16e
o.ye*./*o
4.846.612
*ox
aowen
5,386.807
3�31,464
1.917.966
1.219,446
1.605,340
411
FOSTER GOLF COURSE
785,170
371.314
218.e7e
(143,232)
(243.075
412
SURFACE WATER
1399569
3,066,715
3,433,716
3,126,965
3,333,516
Enterprise Total
12,596 ' 113
12,586,398
10,899,416
8,215,773
9,555,929
502
|maunxmCs
*.418.574
5.491.187
6,559,638
6,502,805
5,953,383
INSURANCE-LEOFF1
856,012 _
910,664
1,839,349
1,888,703
1,706,648
Internal Service Total
*,902.081
10,884,755
12,797,632
12,043,850
11,253,154
Grand Total
51.072.873
45,344,377,751
56,327,333
Funds not included in the Grand Total are the fiduciary funds and market value adjustment. However, these balances Nn,4uu.onr are included m the investment
CITY OF TUKWILA
Treasury Rates and Yield Curves
CASH & INVESTMENT REPORT
June 30, 2015
Ratac at . h ina An gni c;
3mo
6mo
1 Yr
2Yr
3Yr
5Yr
10Yr
30Yr
0.06%
0.27%
0.39%
0.74%
1.05%
1.53%
2.20%
2.97%
Source: US Department of the Treasury
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
om
Rate
%
Change
Change
0.02%
33%
0.20%
74%
0.28%
72%
0.27%
36%
0.17%
16%
-0.09%
-6%
-0.33%
-15%
-0.37%
-12%
Rates at June 30, 2014
3mo
6mo
1Yr
2Yr
3Yr
5Yr
10Yr
30Yr
Comparison of Treasury Rates
0.04%
0.07%
0.11%
0.47%
0.88%
1.62%
2.53%
3.34%
MPD Operating Loan - through end of 2015 only
Period
Accumulated
Interest
(Date)
Beg Bal
Funding
Payments
Interest
End Bal
Interest
Principal Pmt
Pmt
10/1/2011
$ -
$ 191,294
$
$ 319
$ 191,613
$ 319
11/1/2011
191,612.82
-
319.35
191,932.18
638.18
12/1/2011
191,932.18
-
319.89
192,252.07
958.07
1/1/2012
192,252.07
-
-
320.42
192,572.49
1,278.49
2/1/2012
192,572.49
-
-
320.95
192,893.44
1,599.44
3/1/2012
192,893.44
-
-
321.49
193,214.93
1,920.93
4/1/2012
193,214.93
225,000.00
697.02
418,911.95
2,617.95
5/1/2012
418,911.95
-
698.19
419,610.14
3,316.14
6/1/2012
419,610.14
699.35
420,309.49
4,015.49
7/1/2012
420,309.49
700.52
421,010.01
4,716.01
8/1/2012
421,010.01
701.68
421,711.69
5,417.69
9/1/2012
421,711.69
-
-
702.85
422,414.54
6,120.54
10/1/2012
422,414.54
433,706.00
-
1,426.87
857,547.41
7,547.41
11/1/2012
857,547.41
-
1,429.25
858,976.66
8,976.66
12/1/2012
858,976.66
-
1,431.63
860,408.28
10,408.28
1/1/2013
860,408.28
250,000.00
1,850.68
1,112,258.96
12,258.96
2/1/2013
1,112,258.96
-
1,853.76
1,114,112.73
14,112.73
C
3/1/2013
1,114,112.73
1,856.85
1,115,969.58
15, 969.58
4/1/2013
1,115,969.58
-
1,859.95
1,117,829.53
17,829.53
Prior
5/1/2013
1,117,829.53
-
19,692.58
1,863.05
1,100,000.00
19,692.58
19,692.58 r
6/1/2013
1,100,000.00
-
10,121.48
1,833.33
1,091,711.85
21,525.91
8,288.15
1,833.33
7/1/2013
1,091,711.85
-
10,121.48
1,819.52
1,083,409.89
23,345.43
8,301.96
1,819.52
8/1/2013
1,083,409.89
-
10,121.48
1,805.68
1,075,094.10
25,151.12
8,315.80
1,805.68
9/1/2013
1,075,094.10
-
10,121.48
1,791.82
1,066,764.44
26,942.94
8,329.66
1,791.82
10/1 /2013
1,066,764.44
-
10,121.48
1,777.94
1,058,420.90
28,720.88
8,343.54
1,777.94
11/1/2013
1,058,420.90
-
10,121.48
1,764.03
1,050,063.46
30,484.92
8,357.45
1,764.03
12/1/2013
1,050,063.46
-
10,121.48
1,750.11
1,041,692.08
32,235.02
8,371.37
1,750.11
1/1/2014
1,041,692.08
-
10,121.48
1,736.15
1,033,306.76
33,971.18
8,385.33
1,736.15
2/1/2014
1,033,306.76
-
10,121.48
1,722.18
1,024,907.45
35,693.35
8,399.30
1,722.18
3/1/2014
1,024,907.45
10,121.48
1,708.18
1,016,494.15
37,401.53
8,413.30
1,708.18 j
4/1/2014
1,016,494.15
10,121.48
1,694.16
1,008,066.83
39,095.69
8,427.32
1,694.16
5/1/2014
1,008,066.83
10,121.48
1,680.11
999,625.46
40,775.80
8,441.37
1,680.11
6/1/2014
999,625.46
10,121.48
1,666.04
991,170.02
42,441.84
8,455.44
1,666.04
7/1/2014
991,170.02
-
10,121.48
1,651.95
982,700.49
44,093.79
8,469.53
1,651.95
8/1/2014
982,700.49
10,121.48
1,637.83
974,216.85
45,731.63
8,483.65
1,637.83 i
9/1/2014
974,216.85
10,121.48
1,623.69
965,719.06
47,355.32
8,497.79
1,623.69
10/1/2014
965,719.06
10,121.48
1,609.53
957,207.11
48,964.85
8,511.95
1,609.53
11/1/2014
957,207.11
10,121.48
1,595.35
948,680.98
50,560.20
8,526.13
1,595.35
12/1/2014
948,680.98
10,121.48
1,581.13
940,140.63
52,141.33
8,540.34
1,581.14
1/1/2015
940,140.63
10,121.48
1,566.90
931,586.06
53,708.24
8,554.58
1,566.90
2/1/2015
931,586.06
10,121.48
1,552.64
923,017.22
55,260.88
8,568.84
1,552.64
3/1/2015
923,017.22
-
10,121.48
1,538.36
914,434.10
56,799.24
8,583.12
1,538.36
4/1/2015
914,434.10
10,121.48
1,524.06
905,836.68
58,323.30
8,597.42
1,524.06
5/1/2015
905,836.68
10,121.48
1,509.73
897,224.93
59,833.03
8,611.75
1,509.73 Current
6/1/2015
897,224.93
10,121.48
1,495.37
888,598.82
61,328.40
8,626.11
1,495.37
7/1/2015
888,598.82
10,121.48
1,481.00
879,958.34
62,809.40
8,640.48
1,481.00
8/1/2015
879,958.34
-
10,121.48
1,466.60
871,303.46
64,276.00
8,654.88
1,466.60
9/1/2015
871,303.46
-
10,121.48
1,452.17
862,634.15
65,728.17
8,669.31
1,452.17
10/1/2015
862,634.15
-
10,121.48
1,437.72
853,950.39
67,165.89
8,683.76
1,437.72
11/1/2015
853,950.39
-
10,121.48
1,423.25
845,252.16
68,589.14
8,698.23
1,423.25
12/1/2015
845,252.16
-
10,121.48
1,408.75
836,539.44
69,997.90
8,712.73
1,408.75
55
Capital Loan to MPD Repayment Schedule
MPD Capital Loan
PAYMENT BEGINNING PRINCIPAL INTEREST INTEREST
DUE DATE BALANCE PAYMENT RATE PAYMENT ENDING
2/1/2013
Amount loaned to the MPD
1,000,000.00
6/1/2013
1,000,000.00
(50,731.67)
0.02
(5,833.33)
949,268.33
12/1/2013
949,268.33
(48,258.90)
0.02
(8,306.10)
901,009.43 - Prior
6/1/2014
901,009.43
(48,681.17)
0.02
(7,883.83)
852,328.26
12/1/2014
(49,107_.13)
(7,457.87)
803,221.13
6/1/2015
_ _852,32_8.26_
803,221.13
_ _ _ _
—(49-,-5-36-8-2)
_ _ _0.02_
0.02
_ _ _
(7,028.18)
_
753,684.31
_ _
Current
12/1/2015
753,684.31
(49,970.26)
0.02
(6,594.74)
703,714.05
6/1/2016
703,714.05
(46,537.07)
0.03
(10,027.93)
657,176.98
12/1/2016
657,176.98
(47,200.23)
0.03
(9,364.77)
609,976.75
6/1/2017
609,976.75
(47,872.83)
0.03
(8,692.17)
562,103.92
12/1/2017
562,103.92
(48,555.02)
0.03
(8,009.98)
513,548.90
6/1/2018
513,548.90
(49,246.93)
0.03
(7,318.07)
464,301.97
12/1/2018
464,301.97
(49,948.70)
0.03
(6,616.30)
414,353.27
6/1/2019
414,353.27
(48,277.93)
0.04
(8,287.07)
366,075.34
12/1/2019
366,075.34
(49,243.49)
0.04
(7,321.51)
316,831.85
6/1/2020
316,831.85
(50,228.36)
0.04
(6,336.64)
266,603.49
12/1/2020
266,603.49
(51,232.93)
0.04
(5,332.07)
215,370.56
6/1/2021
215,370.56
(52,257.59)
0.04
(4,307.41)
163,112.97
12/1/2021
163,112.97
(53,302.74)
0.04
(3,262.26)
109,810.23
6/1/2022
109,810.23
(54,368.80.)
0.04
(2,196.20)
55,441.43
12/1/2022
55,441.43
(55,441.43)
0.04
(1,108.83)
0.00
(131,285.26)
56