HomeMy WebLinkAboutRFA 2015-10-14 COMPLETE AGENDA PACKET
AGENDA
Regional Fire Authority Annexation Steering Committee
Date: Wednesday, October 14, 2015
Place: Tukwila Fire Station 51 Training Room
444 Andover Park E, Tukwila, WA 98188
(206) 575-4404
Time: 5:00 – 5:30 p.m. Refreshments
5:30 – 7:30 p.m. Steering Committee Meeting
I. Cost Comparison Worksheet Update Vicky Carlsen, Tukwila Deputy Finance
Director
II. Capital Improvement Plan
Tukwila Needs Vicky Carlsen
KFDRFA Proposal Larry Rabel, Captain, KFDRFA
III. KFDRFA Revenue Overview Larry Rabel
Benefit Charge
IV. Schedule Review Moira Bradshaw
Upcoming meetings: Wed. October 28; Thursday Nov. 5 th; (Wed. Nov. 18th - if needed.)
Council Update: Monday October 19, 2015
Council Presentation: November 16 or December 7, depending on date of Committee’s
last meeting.
V. Adjourn
Attachments: September 9, 2015 Committee Meeting Summary
Finance Committee Proposal Memo
City of Tukwila
MINUTES
Regional Fire Authority Annexation Steering Committee
September 9, 2015
Call to Order
Co-Chair Verna Seal called the meeting to order at 1738 hours.
Committee Members
David Cline, City Administrator; Verna Seal, City Councilmember; Joe Duffie, City Councilmember;
Moira Bradshaw, Senior Planner; Chris Flores, Tukwila Interim Fire Chief; Alan Codenys, Tukwila
firefighter; Merle Brooks, Tukwila firefighter; Dawn Judkins, Captain, Union President of Tukwila
firefighters; Jim Schneider, Chief KFDRFA; Mike Denbo, Commissioner, board member of KFDRFA;
Genevieve Christensen, Assistant General Manager, Westfield Mall; Roxanne Knowle, Senior Real
Estate Manager, CBRE; Jessica Jerwa, Tukwila citizen representative; Jerry Thornton, Tukwila
citizen representative; Kathleen Wilson, Tukwila citizen representative.
Ride-along Experience
Jerry Thornton recently did a ride-along on Tukwila’s Engine 51. He said it was a worthwhile
opportunity and a great experience. It also gave him a chance to talk to the Tukwila firefighters about
the KFDRFA (Kent Fire Department Regional Fire Authority). The responses he got were all positive.
Roxanne Knowle relayed her experience with the Kent RFA firefighters during an unexpected
encounter. Her son enjoyed an opportunity to climb into the engine and she had a chance to talk
with the firefighters about the potential Tukwila annexation.
Governance Report
The governance work group, which included Tukwila Councilmembers Duffie and Seal, and Kent
Councilmember Thomas and Commissioner Denbo, presented a report on the first five sections of the
proposed Tukwila Plan Amendment to the KFDRFA Plan. Revisions to the Plan are being drafted so
that it is applicable to Tukwila. City Administrator Cline noted that the edits to the Plan to add Tukwila
will keep the historical portions.
Moira Bradshaw pointed out that important sections in the Plan that have been revised are the “needs
statements” on pages 10, 11, the annexation effective and operational dates on page 12, the City of
Tukwila annexation authority on pages 16, 17; the establishment of the governing board structure and
operation on page 21, 22; and the development of a name change for the consolidated RFA on page
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Regional Fire Authority Annexation Steering Committee Minutes Page 2 of 5
September 9, 2015
22. The amended governance section proposes that on the Tukwila annexation effective date, the
KFDRFA governing board would add three new voting members consisting of current Tukwila City
Council members to the existing six voting and two non-voting members of the Board.
The reason the annexation effective date is different from the annexation operational date is because
the KFDRFA would need time to gear up for the addition of the Tukwila firefighters. The two different
dates also will allow time for Tukwila to have input into any 2017 budgeting and policy decisions and
the KFDRFA name change. Chief Schneider noted that the name change would probably start
immediately after a positive vote and that all stakeholders would be included in the renaming process.
Commissioner Denbo said the Governance work group accomplished a lot in a short amount of time.
Moira Bradshaw explained that the draft Plan will encapsulate the work done by this Steering
Committee and will form the basis of the recommendation that the Committee sends to the Tukwila
City Council.
Roxanne Knowle asked if there would be an opportunity for the Tukwila Plan Amendment to be
revised during the process, and if there would be back-and-forth discussion during the process?
Moira Bradshaw stated that the KFDRFA are involved in the Steering Committee meetings, they are
drafting and reviewing the proposed amendments to the Plan, and they are participating in the
various work groups in order to minimize significant changes later in the process; however, changes
to the Plan are possible with the Tukwila City Council and the KFDRFA Governing Board.
The following steps will happen before final approval of the Tukwila Plan Amendment. First, the
Steering Committee will make a recommendation to the Tukwila City Council. Then, if the City
Council approves the Plan amendment, the KFDRFA Governing Board will have to approve the Plan.
If the KFDRFA Governing Board approves the Plan, the final step will be for the Tukwila City Council
to put the Plan up for a vote by the citizens of Tukwila. The citizens will have the final input by voting
on whether or not to adopt the Plan and annexation.
Chief Schneider said that the Plan and the fire benefit charge used to be voted on separately, but
now they are voted on together. The first part of the Tukwila Plan Amendment is basically dictated by
RCW’s and is very generic. The last three sections involving finance, administrative, fire prevention
and investigation, public education and emergency management and contain the meat of the Plan.
Capt. Judkins asked who makes the decisions on the revision of sections 7, 8 and 9 of the Plan?
Moira Bradshaw said the Finance Committee would be recommending revisions to Section 7 -
Financial. The revision of Section 8, Administrative/Management/Personnel and Section 9
Prevention/PubEd/EM/Investigation are being revised by Tukwila and KFDRFA staff as well as legal
counsel for both agencies. All Sections of the draft Plan are being brought to the Steering
Committee.
Capt. Judkins asked if the Steering Committee would be making a recommendation to the Tukwila
City Council about whether or not to contract with the KFDRFA for those contract services? Moira
Bradshaw responded since those services are addressed in the Plan, the Steering Committee would
be including their recommendation on those issues to the City Council.
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Regional Fire Authority Annexation Steering Committee Minutes Page 3 of 5
September 9, 2015
Moira Bradshaw noted that an important outcome of the Governance work group’s meeting in July
was the concept of having two different dates:
1. An Annexation Effective Date of July 31, 2016, which allows governance of the RFA to include
Tukwila. August 1, 2016 is the deadline to notify King County of any changes in levy codes so
that revenue can start accruing on the Operational Date of January 1, 2017; and
2. An Annexation Operational Date of January 1, 2017, which provides time for the organizations
to merge, incorporate 67 transferred employees and gear up to operate as a consolidated
organization.
Community Outreach Discussion
There is a community outreach plan that includes holding specific business and community meetings,
and articles in the Hazelnut and Tukwila Reporter. It’s anticipated that the best time to have the
community meetings will be after the steering committee and before the Tukwila City Council public
hearing.
Councilmember Duffie stressed that the citizens need to be informed and allowed input before the
City Council holds a vote on the RFA annexation. He said the City can’t come to the citizens at the
last minute.
Councilmember Seal said citizens are upset because of misinformation resulting from some people
talking about numbers that have not been vetted. As an example, on another issue, she said the City
held public meetings for one year about the City’s Comprehensive Plan, but some community
members are upset because of misinformation they have received. There is inaccurate information
out there.
Chief Flores stated that the fire department is also running into that problem; however, he and Moira
Bradshaw have spoken to citizen groups that are well-informed. The City will be scheduling “open
houses” at the Fire stations, so that citizens can tour the stations and can ask questions. He stressed
the need to have a consistent message. Even though the current approach is good, there is always
the risk of missing somebody. Outreach is occurring, but there is more that we can do.
Councilmember Seal said people need to know the numbers, i.e. “what’s it going to cost me and what
do I get?”
City Administrator Cline asked the Committee for ideas on how to improve community outreach so
that we reach the most people with the right information, and how much time would be needed for the
community to weigh-in on the City Council’s decision?
Councilmember Duffie said that since he serves the citizens of Tukwila, he needs to make sure the
citizens of Tukwila want the RFA. He thinks the RFA is a good program, but the citizens need to
decide for themselves. He wants to be sure the business people and the citizens want to be part of
the RFA before any final decision is made.
City Administrator Cline asked Chief Schneider how the KFDRFA got community input. Chief
Schneider said it takes a long time to put the pieces together to be successful. This will be the third
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Regional Fire Authority Annexation Steering Committee Minutes Page 4 of 5
September 9, 2015
consolidation he has been involved in. People want to know the bottom-line, but it takes a lot of work
to determine the numbers for the fire benefit charge. He is committed to being transparent. The
KFDRFA didn’t talk to service groups until after the Kent City Council voted on the RFA plan. He is
hoping King County will have a calculator available on their website, so that a citizen could see a
breakdown of what they would be paying for each part of their property tax bill. If not, citizens could
call either Kent or Tukwila, and they will figure the property tax calculations for them.
The RFA was originally formed because the Kent Fire Department wanted to sustain services and
avoid cutbacks. If they had not gone with the RFA, they would have had to close two stations. The
KFDRFA was able to get an impact fees ordinance passed in the City of Kent to help cover future
capital improvement costs, which is a huge change. The benefit of the RFA is that the board is only
concerned with the fire department, and the fire department does not have to compete with other City
departments for funding. Having an RFA allows the citizens the opportunity to vote not only thru their
City Council, but also on the fire benefit charge. When the KFDRFA was formed, they inherited a lot
of infrastructure that needed updating, so they had a large amount of capital improvement needs.
Because of the capital improvement needs and the fact that assessed property values dropped when
the KFDRFA was first formed, the fire benefit charge was higher. The fire benefit charge can be
adjusted so that the RFA doesn’t have to decrease services. The KFDRFA will lower the fire benefit
charge this year because some of the backlog in capital improvements have been completed. When
the KFDRFA first formed, they were able to keep the Kent and Covington residents’ taxes about the
same; the taxes on the businesses did go up some.
City Administrator Cline said it’s important to keep the community informed now and in the future.
Before the steering committee makes a recommendation to the City Council, it’s important to be sure
the Tukwila Plan Amendment works for both Tukwila and the KFDRFA. The Steering Committee has
been updating the City Council every two months on the Committee’s progress.
Roxanne Knowle asked if there was a plan to put together a summary for the public? Moira
Bradshaw said they would be targeting residences and businesses with a summary of the basic
information and where they can go to find more detailed information.
Organizational Structure/Operations
Chief Schneider discussed the organizational chart created by merging the K FDRFA and Tukwila Fire
Departments. Some positions that are duplicates of positions already existing in the KFDRFA, would
eventually go away thru attrition. This process would eventually lead to economies of scale as the
organization evolves. Some extra positions would be needed in the IT and the apparatus
maintenance areas. If the annexation happens, the KFDRFA would end up with over 300 employees.
If the vote passes, he would then decide the best positions for the Tukwila staff. Nobody in the
Tukwila Fire Department would lose their job or take a cut in pay. The Tukwila City Council will
ultimately decide whether or not the City keeps fire prevention, public education, emergency
management and fire investigations or contracts with the RFA to provide those services.
General Discussion
Moira Bradshaw asked the Committee members if they would like more time to go through Sections
1-6 of the Tukwila Plan Amendment, which is on tonight’s agenda? Councilmember Seal said she
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Regional Fire Authority Annexation Steering Committee Minutes Page 5 of 5
September 9, 2015
really wants the members to review the needs statement on page 11 of the Plan and come to the next
meeting with feedback.
There was general discussion about scheduling additional meeting dates in October and November
since the Finance committee was not yet ready to report out, and their presentation would probably
take two meetings. Consensus was reached to schedule the additional following dates: Wed,
October 28, Thursday, November 5, and potentially Wednesday November 18 as a back-up date.
The Committee’s presentation to the City Council would depend on when the Finance package can
be completed for the Committee’s review. Moira Bradshaw also asked Committee members to let
her know if they wanted to discuss other parts of the Tukwila Plan Amendment in more detail during
one of the future committee meetings.
Capt. Judkins pointed out that the Tukwila Firefighters Union was hoping to vote on the RFA proposal
at their November 10th meeting.
Roxanne Knowle asked what would happen in the meeting presented by the finance committee?
Chief Schneider explained that after the operating budget and capital improvements budget are
defined, the fire benefit charge can be defined. After the fire benefit charge has been defined, it will
be possible to show the citizens what the cost will be.
City Administrator Cline pointed out that Tukwila currently has not budgeted any dollars for capital
replacement for the fire stations. The capital improvements involve large numbers, and the City and
the RFA will have to discuss who will be responsible for which improvements.
Roxanne Knowle asked about the time-length of the RFA’s capital improvement plan? Chief
Schneider replied that the RFA had a 15-year capital improvement plan.
Adjournment
At 1907 hours Co-Chair Seal declared the regional fire authority steering committee meeting
adjourned.
Minutes taken and prepared by Norita Deckard, Admin. Support Tech.
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To: Regional Fire Authority Annexation Steering Committee Members
From: Moira Carr Bradshaw
Date: October 9, 2015
Subject: Finance Committee Proposal
On Wednesday, October 14, the Finance Committee will present the Steering Committee with
a proposed financial package that accompanies annexation into the Kent Fire Department
Regional Fire Authority (the “Kent RFA”). Generally, the proposed financial package would
raise sufficient revenue to enable the Kent RFA to provide the Tukwila community with fire
and emergency medical services at existing and/or better service levels. The proposal
includes sufficient funding for not only the annual operating cost of the Kent RFA post-
annexation, but also a schedule and financing plan for a 20-year capital improvement plan
by the Kent RFA that features the replacement of three of the Tukwila fire stations, the
remodeling of the fourth Tukwila fire station, and ensures adequate reserves for scheduled
replacement of apparatus and equipment.
There are three components to the proposed financial package:
1. Operating Budget
The Kent RFA and the City of Tukwila Fire Department have provided operating budget
projections for 2015, so as to provide the Steering Committee with an “apples to apples”
comparison of the costs of providing fire and emergency medical services by each entity to
the Tukwila community. This information was originally presented in July, and is being
updated based upon actual amounts expended by the City of Tukwila Fire Department in
2015.
2. Capital Budget
The City of Tukwila has four fire stations, three of which need to be replaced, and on-going
apparatus and equipment replacement needs. A needs summary of the four fire stations is
below. As part of the proposed financial package, the Kent RFA has incorporated both the
cost for building and maintaining the City’s fire stations—including a proposed schedule for
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Page 2 of 6
construction and/or renovation—as well as the costs attendant to maintaining and timely
replacing the City’s current inventory of equipment and apparatus.
The Kent RFA’s philosophy for funding capital is to set money aside each year to build a
reserve, and to then pay for capital needs from that reserve fund. In contrast, the City’s
philosophy for financing major capital needs is to utilize bond proceeds or via a ‘pay-as-you-
go’ approach, using general fund money as needs arise. The differences in approach for
funding capital account for the increased cost projected for fire services under the Kent RFA
model.
Because of the difference in funding models and the budgeting approaches between the two
organizations, a uniform “equivalent property tax levy rate,” will be shown on a cost
comparison worksheet.
3. Revenue Proposal
Kent RFA, as a statutory taxing authority, obtains revenue via two main sources—general
purpose property taxes and a user fee, known as a Fire Benefit Charge (“FBC”)—while
receiving limited additional funding from grants, contract payments and development
impact fees. The Kent RFA property tax rate is capped at $1.00 per $1,000 of assessed value,
while the FBC is assessed on structures within the City, and calculated via a complex
algorithm that takes into consideration building size, types of use, as well as the structure’s
fire risk and projected needs for service. Of note, the FBC is weighted against those who
receive more in fire protection services (e.g., large structures and high fire-risk structures),
thereby allocating costs more heavily to those who utilize the services. Further, the FBC is
solely applied to improvements to real property, giving tax relief to owners of vacant land.
A description of the basics of the FBC is attached.
The Kent RFA funding model relative to the operating and capital costs projected for the City
by both the Kent RFA and the City of Tukwila anticipate a deficit in funding over the next 20
years. The proposed financial package posits that the City would cover the deficit with fire
impact fees from a contractual agreement and anticipated new development, along with two
initial payments of $565,000 in 2016 and 2017.
Summary
The Finance Committee acknowledges that this proposal only reflects part of the overall
financial impact of the decision a community member faces as it considers joining the Kent
RFA. This proposal shows the cost to the Tukwila taxpayer for service from the Kent RFA
and the budgetary impact on and revenue package for the Kent RFA.
The Tukwila City Council began discussions during a September 15, 2015 work session on
the long term financial health of the City, and the potential benefits to the City from a variety
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Page 3 of 6
of revenue options, including potential trade-offs that can result from annexation into the
Kent RFA. This discussion involves not only the long term operating cost of the City but also
the capital projects that are part of the City’s long range needs. Those discussions are
ongoing and should result in budgetary options available to the City as a result of the
annexation.
Finance Committee: Tukwila Councilmember Dennis Robertson, Tukwila City Administrator
David Cline, Tukwila Interim Fire Chief Chris Flores, Tukwila Deputy Finance Director Vicky
Carlsen, Tukwila Project Manager Moira Bradshaw, Kent Fire Department RFA Chief Jim
Schneider, KFDRFA Captain Larry Rabel, KFDRFA Finance Manager Margaret Martin.
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Tukwila Fire Station Capital Summary
Relocate Fire Station 51 - 444 Andover Park East (Constructed 1973)
Station 51 should be replaced for 2 reasons:
The station is in a poor response location to serve
the southern portion of the City. In an
agreement with Segale Properties, land for a
station is dedicated for a relocated station at the
intersection of S. 180th Street and Southcenter
PY. The move will put the new station above the
Green river floodplain; provides opportunity to
increase size of current facility, which is
undersized for its current uses; and allows a new
public safety facility that will meet and exceed minimum construction standards.
Reconstruct Fire Station 52 – 14475 59th Avenue S. (constructed 1971)
Upgrades of many aspects of the building are
recommended such as mechanical - energy
components; safety - seismic components; and
overall size. The structure (and possibly the
site) is not conducive to efficient expansion.
Remodel Fire Station 53 – 4202 S 115th Street (constructed 1995)
No immediate needs other than basic
maintenance such as paint and wood
repair. Potential need to expand in future
due to growth in Manufacturing Industrial
Center.
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Page 5 of 6
Reconstruct Fire Station 54 - 4237 S 144th Street (constructed 1961)
Reconstruction to enlarge storage
space and apparatus bay in size and
height, which is not easily
accomplished because of
construction type - (concrete
masonry. Station does not meet
minimum standards for fire stations
including seismic events.
See pages 1-33 to 1-47 for more details on the condition of the facilities on the City’s web page at this
link: http://www.tukwilawa.gov/mayor/facilitiesstudy/Phase%202%20Facility%20Assessment.pdf
Attachment:
Fire Benefit Charge Basics
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Page 6 of 6
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Basics of the Fire Benefit Charge Funding System
• The Fire Benefit Charge (FBC) funding method is a voter approved, two part funding system that
balances general purpose taxes and a user fee charged to buildings based on risk and need for
service. It is called a benefit charge because it refers to the benefit of having fire protection
available.
A tax of up to $1.00 may be levied on assessed values of property and used for all day to
day operations and capital needs of the fire department.
A Fire Benefit Charge (FBC) of up to 60% of the operating budget may be assessed and
used only for day to day operational expenses such as salaries, equipment, fuel and
utilities.
• Fire Benefit Charges and property taxes are authorized under the Revised Code of Washington
(RCW) 52.26.180.
• The Fire Benefit Charge formula calculates the amount of firefighting water that would be
required to extinguish a fire(s) that could occur on a property and the number of fire
department resources that would be required to deliver that amount of water.
Required fire flow and needed firefighting resources are determined by the size and
types of improvement on a property;
Size is determined by finding the total square footage of all improvements on a
property. Total square footage is determined by adding all gross square footage
(outside measurements of building(s) and all floors, basements, garages and
mezzanine spaces are added together to determine total square footage) on the
property.
The type of improvement are defined as:
House or Condo, Apartment, Mobile home, Commercial building
• When the structural improvement(s) on a property have higher than normal risk as defined by
the National Fire Protection Association in Standard 13 the Fire Benefit Charge formula adds to
the base fire benefit charge as follows:
A 30% increase when products or uses with high combustibility or high rates of heat
release are present.
A 40% increase when products or uses with high quantities of flammable, combustible
or hazardous materials are present.
• The formula used is:
Square root of square feet x 18 x category factor x response factor x risk factor x discount x Fire Flow Benefit = FBC
18 is a coefficient value based on empirical tests by the Insurance Services Organization
(ISO)
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• Exemptions to the Fire Benefit Charge (FBC):
Senior citizens and disabled persons who have been qualified through King County for
senior and disabled discounts will receive the same discount offered on property taxes.
If you think you qualify, call the King County Exemption Unit at 206-296-3920 or visit
their website –
Improvements used specifically for religious worship or education are exempt from the
Fire Benefit Charge.
Public schools who pay a per student stipend are exempt from the Fire Benefit Charge.
Entities with a contract for service with the fire department are exempt from the Fire
Benefit Charge.
• State law requires annual public hearings prior to the next year’s rates being adopted. Every six
years, voters have the opportunity to reauthorize the Fire Benefit Charge. Hearings are held
annually in October by the Kent Regional Fire Authority Governance Board.
• Should you have any questions regarding the Fire Benefit Charge funding system, please call
253-856-4300.
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City of Tukwila
Fire Department Budget
October 14, 2015
City of Tukwila Regional Fire Authority Annexation Steering Committee
1
15
Tukwila Fire Department 2015 Budget
2
Administration $748,812
Suppression 7,954,891
Training 389,380
Facilities (maint, supplies)110,860
Special Operations 60,537
Ambulance/Rescue/Aid 189,325
*Operations $9,453,805
Operations $9,453,805
LEOFF 1 (City Responsibility)481,000
Prevention (contract)706,934
Emergency Mgmt (contract)315,108
Total Fire Department
Budget
$10,956,847
*Includes vehicle
maintenance
16
Annual Indirect Costs Details
3
Information Technology 190,542
Human Resources 134,025
Finance (Includes
insurance)
391,214
City Attorney 15,378
Public Works 34,278
Parks Maintenance 31,633
Total $797,070
17
City Fire Budget Related Costs
4
2015 Annualized Capital Requirement
“Pay As You Go”
Equipment $75,000 –$150,000
Apparatus 500,000 –900,000
Facilities 800,000 –1,300,000
Total Annualized
Capital Requirement:$1,375,000 –$2,350,000
City Responsibility
Cost transfers to RFA
Expenditures 2015 Budget
Operations $9,453,805
Indirect Costs 797,070
10,250,875
Prevention 706,934
Emergency Management 315,108
LEOFF 1 Medical 481,000
Firemen’s Pension 132,727
Total Budgeted Costs:$11,886,644
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Projected Fire Related 2015 Actuals
5
2015 Annualized Capital Requirement
“Pay As You Go”
Equipment $150,000
Apparatus 900,000
Facilities $1,300,000
Total Annualized Capital
Requirement:$2,350,000
Expenditures
2015
Projected
Actual
Operations $9,390,939
Indirect Costs 797,070
$10,188,009
Prevention $792,607
Emergency
Management
$321,400
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Cost Comparison Worksheet
Rounded to thousands
City
2015 Projected
Actuals
RFA Proposed
Budget Difference
Operational Costs $10.19 M $10.54 M $0.35 M
Equivalent Levy $2.03 $2.10 $0.07
6
Operational costs for the City include $0.8M in indirect costs
20
Cost Comparison Worksheet
Rounded to thousands
Capital
City
Annualized
Capital Estimates
RFA Proposed
Estimates Difference
Equipment $150 $133 $(17)
Apparatus $900 $405 $(495)
Facilities $1,300 $1,642 $342
Total Capital $2,350 $2,180 $(170)
Equivalent Levy $0.47 $0.43 $(0.04)
7
City: Assumes 10 year replacement for admin-type vehicles, 15 years for heavy-
duty apparatus
RFA: Assumes 7-10 years for admin-type vehicles, 20 years for heavy-duty
apparatus.
21
Cost Comparison Worksheet
Rounded to thousands
City
2015
Projected
Actuals
RFA Proposed
Budget Difference
Total Operations & Capital $12.54 M $12.72 M $0.18 M
Equivalent Levy $2.50 $2.53 $0.03
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22
Cost Comparison Worksheet
Rounded to thousands
Interlocal Agreement
City
2015 Projected
Actuals
RFA Proposed
Budget Difference
Prevention & Investigation $793 K $902 K $110 K
Emergency Management $321 K $339 K $18 K
Total $1.11 M $1.24 M $128 K
Equivalent Levy $0.22 $0.25 $0.03
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Cost Comparison Worksheet
Rounded to thousands
City
2015 Projected
Actuals
RFA Proposed
Budget Difference
Total Operational,Capital,
Prevention, Investigation,
Emergency Management $13.65 M $13.96 M $307 K
Equivalent Levy $2.72 $2.78 $0.06
10
LEOFF 1 and Firemen’s Pension remain a cost to the City so are not included in
any of the calculations above
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Capital Summary
Cost
Revenue
Schedule
11
25
20 Year Capital Plan
Stations $ 26 M
Apparatus 12 M
Other & Reserves 9 M
Total $47 M
Taxes & Fees $36.0 M
Kent RFA taxpayers .3 K
Developer Impact fees 9.6 M
Cash or in-kind 1.1 M
Total $47 M
12
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Existing Stations
13
Station 51: Built in 1973
16,115 sq ft
Southcenter/Commercial
Business District
Station 52: Built in 1971
3,360 sq ft
Old Tukwila/Tukwila Hill
27
Existing Stations
14
Station 53: Built in 1995
7,392 sq ft
North Tukwila/Allentown
Station 54: Built in 1961
5,398 sq ft
Foster/Foster High School
28
20 year Capital Plan Schedule
Year
Fire Station 51 2021
Fire Station 52 2023
Fire Stations 53 and 54 2030-2033
Capital Equipment 10-15 Yrs
Standard RFA replacement cycle
October 14, 2015City of Tukwila RFA Annexation Steering Committee Meeting 15
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CityRFA
2015
Projected
Actuals
Proposed
BudgetDifference
* Operational Costs 10,188 10,538 350
Equivalent Levy Rate for Operational Costs 2.03 2.10 0.07
Capital
Equipment 150 133 -17
Apparatus 900 405 -495
Facilities 1,300 1,642 342
2,350 2,180 -170
Equivalent Levy Rate for Capital 0.47 0.43 (0.03)
Total Operational & Capital Costs 12,538 12,718 180
Equivalent Levy Rate for Operational & Capital 2.50 2.53 0.04
Interlocal Agreement
Prevention & Investigation 793 902 110
Emergency Management 321 339 18
1,114 1,242 128
Equivalent Levy Rate for Prev, Investigation, EM 0.22 0.25 0.03
Total Operational & Capital, Prev, Investigation, EM
Costs
13,652 13,959 307
Equivalent Levy Rate for Operational, Capital, Prev,
Investigation, EM
2.72 2.78 0.06
Cost Comparison Worksheet
City: Assumes 10 year replacement admin-type vehicles, 15 year replacement for heavy-duty apparatus
RFA: Assumes 7-10 year replacement admin-type vehicles, 20 year replacement for heavy-duty
apparatus
Rounded to thousands
* Operational costs for the City include $797K in indirect (soft) costs, does not include LEOFF 1 or
firemen's pension costs
C:\Users\Vicky-C\Desktop\Copy of Fire Budget Only.xlsx Expenses 10/15/2015 10:32 AM 31
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Funding Tukwila Fire Services
through Annexation to the Kent RFA
Part 1
October 14th 2015 Tukwila Steering Committee Meeting 133
The Process
•Finance Committee tasked to:
–Arrive at current cost of Tukwila Fire Operations &
Capital Needs
•Hard costs
•Soft costs
•Cost of City owned responsibilities
–Cost of Fire Prevention
–Cost of Fire Investigations
–Cost of Emergency Management
October 14th 2015 Tukwila Steering Committee Meeting 234
The Process
•Capital Needs –2016 -2035
–Fire Stations -51, 52, 53, 54 $25,828,452
–Life Cycle replacements -$12,332,250
–Asset preservation -$ 567,000
–New response apparatus $ 1,150,000
–Interim funding ($10 mil bond)$ 2,453,540
–Capital reserve 9% –2035 $ 4,942,496
October 14th 2015 Tukwila Steering Committee Meeting 335
The Process
•Future Growth and ability to meet future need
–Stations Deployment Plan Adequate to LOS
•St 51 Concentration Station
•St 52, 53, 54 Distribution Stations
–Staffing to meet distribution need
–Additional apparatus needed
•Aid Car circa 2022
•Engine circa 2025
October 14th 2015 Tukwila Steering Committee Meeting 436
The Process
•Total funding needs defined for FBC and RFA
–Provides operational funding for 4 fire stations
through 2035
–Provided capital funding for all stations and
equipment
–RFA cannot absorb total cost
•Cash flow issue first 10 plus years
October 14th 2015 Tukwila Steering Committee Meeting 537
The Process
•Summary -RFA commitment
–Station 51 construction begins 2017 open 2021
–Station 52 open by 2023
–Station 53 and 54 later 2030 –2033
–Capital equipment replacement cycles
•20 years heavy duty Tukwila 15 years
•7 years medium duty Tukwila 10 years
•10 years light duty Tukwila 10 years
•Other equipment per requirements
October 14th 2015 Tukwila Steering Committee Meeting 638
The Process
•Summary RFA commitment (cont.)
–Operational and most capital funding
–Additional Aid Car and Engine to maintain
reliability
–Additional staffing for:
•Distribution 53 as required
•Additional units as required
October 14th 2015 Tukwila Steering Committee Meeting 739
Fire Benefit System
FBC Designed for Tukwila’s
Unique Service Area
840
Kent Fire Authority
Fire Benefit Charge Funding
System
$1.00 Tax
Levy
FBC
Assessment
(Size, Use & Risk)
Total Annual
Fire
Assessments
9 41
FBC Funding System Basics
•Charge cannot exceed 60% of operating
budget
–FBC begins at 58% of ops budget in 2017
•Declines through 2035
•FBC must be fairly apportioned
•Apportioned fee amount & benefit at least
equal to fee
•KFD FBC applies to structures 400 feet or
larger
1042
FBC Exemptions
•Facilities used for religious worship or
education
–100% exemption
•Low income Seniors and Disabled
–Same as tax exemptions (up to 75%)
•Annual household income of $35,000 or less
•Retired because of physical disability and have an
income of $40,000 or less
•Must qualify through King County 206-205-5759
•Vacant Land and structures less than 400
sq ft
11 43
FBC Specifics to Tukwila
•Tukwila represents a unique service area
–Geography and built environment limits fire
station reach
•Hills and rivers
•Built environment
–Restricted access of roadways
»I-5, I-405, SR 518
–High service needs of “Regional Retail”
»High traffic volumes
»Extraordinary fire service demand
•High employee volumes
•High shopper volume
1244
FBC Specifics to Tukwila
•Fire service costs are higher in Tukwila
•FBC Formula is same throughout RFA
–FBC Factors adjusted to Tukwila
•Reduced cost share on single family homes
•Higher fire flow factor to adjust for increased cost
of fire services within Tukwila
–Changes in FBC factors nets higher total tax
+ FBC costs in Tukwila service area
•Based upon rationale of higher costs due to
terrain, waterways and built environment
13 45
FBC Funding System Basics
Tukwila adjustments to RFA’s base formula
•FORMULA =
Square Root of Area X 18 X Category x Response x
Risk x Discount x Fire-flow factor
1.Size of structure Square Root of Area
2.Fire-flow needed X 18
3.Type of structure X Category (homes .70 vs .80)
4.Resources needed X Response
5.Risk fees X Risk (retail factors)
6.Risk discounts X Discount
7.Fire-flow fact. Needed X Fire-flow factor
1446
Questions
15 47