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HomeMy WebLinkAbout2015-10-12 Committee of the Whole MinutesTukwila City Council Committee of the Whole Meeting City Hall Council Chambers October 12, 2015 — 7:00 P.M. MINUTES COMMITTEE OF THE WHOLE CALL TO ORDER /PLEDGE OF ALLEGIANCE Council President Kruller called the Tukwila City Council meeting to order at 7:00 p.m. Councilmember Duffie led the audience in the Pledge of Allegiance. OFFICIALS Present were Kate Kruller, Council President; Councilmembers Joe Duffie, Dennis Robertson, Allan Ekberg, Verna Seal, Kathy Hougardy, De'Sean Quinn. CITY OFFICIALS Jim Haggerton, Mayor; David Cline, City Administrator; Rachel Bianchi, Communications and Government Relations Manager; Bob Giberson, Public Works Director; Pat Brodin, Operations Manager; Mike Cusick, Senior Program Manager; Bruce Linton, Deputy Police Chief; Chris Flores, Interim Fire Chief; Derek Speck, Economic Development Administrator; Brandon Miles, Economic Development Liaison; Laurel Humphrey, Council Analyst; Melissa Hart, Deputy City Clerk. SPECIAL PRESENTATION Valley View Sewer District loop area sewer project overview. Bob Giberson, Public Works Director, introduced Dana Dick, Manager, and Andrew LaRue, Assistant Manager, Valley View Sewer District. Mr. Dick introduced Valley View Sewer District Commissioners in attendance this evening. He explained the meeting this evening is the third meeting the residents of the Loop have been invited to attend. Mr. Dick utilized a PowerPoint presentation to update the Council on the City's "Loop Area" sewer project. Highlights of the presentation included: WHY SEWERS, WHY NOW? 1. Public health issues. Sampling has documented fecal coliform bacteria in streams and wetlands. 2. Requests from property owners. Property owners have indicated an interest in sewers for a number of reasons. 3. The City has shown interest in having the pockets of areas that are not connected to sewers transitioned to sewer service. 4. In early 2015, the City and Valley View entered into an Interlocal Agreement delegating authority to the sewer district to include the "Loop Area" in the Valley View service area. 5. Per the Valley View District's legal responsibility under Washington State law and the Growth Management Act, Valley View must investigate construction of public sewers inside the District service area. 6. There is a potential funding source to possibly help reduce the cost to connect to the sewer system. 7. Public sewer systems are being installed in the area in question and other urban areas. The City's 42nd Avenue South Street Improvement Project included sewer connection points for Valley View Sewer District for future service of the "Loop Area." POSSIBLE TIMELINE AND KEY DATES: September 10, 2015 Open House / Public Meeting October 16, 2015 Application for funding due February 2016 First project funding ranking notification expected Tukwila City Council Committee of the Whole Minutes October 12, 2015 Page 2 of 9 July 2016 Final project funding ranking notification expected February - August 2016 Public meeting to discuss the project IF THE DECISION IS MADE TO PROCEED WITH THE SEWER PROJECT: July — November 2016 Final survey and design February — March 2017 Advertise the project for bid April — May 2017 Award the contract for the project June - September 2017 Construction of the sewer project September — November 2017 Sewer service available for connection THE "LOOP AREA" SEWERS — ESTIMATED COST AND GENERAL COST ALLOCATION: • The total estimated project cost is $3.5 million based on an estimate of 2017 construction costs. • $2.3 million will be recovered from existing lots as they connect to sewers. • $1.2 million will be recovered from future lots as they are created and connect to sewers. CHARGE IN LIEU OF ASSESSMENT ( CILOA) The CILOA will not have to be paid up front; it is due at the time of connection to sewer service. The CILOA pays for each properties share of the total new sewer construction project cost. The estimated CILOA is approximately $15,000 per existing lot. The CILOA can be financed at 3% interest, paid in 15 annual installments. Based on the cost, the average yearly payment would equal $1,240.00. If the Valley View Sewer District receives grants for the project, the CILOA will decrease. The CILOA is comprised of the following costs: • Construction within the right -of -way • Design engineering • Project permitting • Easement acquisition • Project inspection GENERAL FACILITY CHARGE (GFC): The GFC includes each parcel's share of costs for the District's general facilities that are not paid through CILOAs or assessments. The GFC's are comprised of the following: • Pump stations • District buildings • District vehicles and equipment • Sewer trunklines The residential GFC connection charge is $4,033 per connection. The connection fee can be financed at 6% interest, payable in 15 annual installment payments. Based on those costs, the average yearly payment would equal $397.92. SIDE SEWER: This cost is to connect the private sewer line from the property line to where the plumbing leaves the house. The costs include side sewer installation from the right -of -way or easement to the residence, and to pump and fill the septic tank. The residential side sewer connection charge is estimated at $4,500. The connection fee can be financed at 6% interest, payable in 15 annual installment payments. Based on those costs, the average yearly payment would equal $444.00. There is possible assistance for the side sewer connection through the King County Housing Repair Program through 0% interest or grant assistance for qualified homeowners. KING COUNTY SEWAGE TREATMENT CAPACITY CHARGE: This cost is set by King County to purchase equity in the existing sewer trunklines and wastewater treatment plants. King County offers the following payment options: • $57.00 per month capacity charge, billed quarterly; or • Early payoff rate of $8,299.43. Tukwila City Council Committee of the Whole Minutes October 12, 2015 Page 3 of 9 ESTIMATED MONTHLY CHARGES FOR SEWER SERVICE IF PAID OVER TIME (15 YEARS) 1. Average estimated monthly CILOA payments $103* 2. Average estimated monthly GFC payments $37 3. Average estimated monthly side -sewer installation payment $33 4. Monthly payment to King County for treatment capacity charge $57 5. Monthly sewer rate $54 6. TOTAL ESTIMATED AVERAGE MONTHLY SEWER BILL $284 *This rate is an estimate and assumes the District does not receive the special loan or project grants. DECISION MAKING OVER THE NEXT 15 MONTHS: No decision on the construction of the sewer project will be made until 2016 when the funding levels are known. A public meeting will be held in 2016 to discuss Valley View's decision on sewer connection after the funding levels are known. If the project moves forward, property owners will not be required to pay for sewers up front. SEWER CONNECTION: Property owners will not be required to pay any of the sewer connection charges until the sewers are connected. Property owners will have the ability to connect to the sewer system when they need to or decide they want to. Once the sewer service is available to the property, the property owner may be required to connect to the sewer service under the following circumstances: (the following conditions may be set by City ordinance, Public Health Department or lending institution) a) Septic system repair is needed or there is a septic system failure. b) Request for a building permit for a major remodel (new bedroom, bathroom, etc.). c) If the property is sold. The Councilmembers exchanged comments and asked clarifying questions relating to the presentation to include: If a homeowner will be required to pay the sewer connection costs prior to selling their home; How the conversation about possible sewer connection in the area initiated; The possibility of annexation of the Loop area into the sewer district; If grant funding were approved, would the project move forward even if the residents were opposed to the project; and Is there an opt -out plan for the sewer district. Mr. Dick explained that a connection to the proposed sewer system is not forced. There are instances that would require a seller to connect to the sewer system (City ordinance, septic system failure or if the system does not pass inspection), and that would be negotiated during the real estate transaction. Relating to how the conversation began, the sewer district was contacted by citizens inquiring about how they could connect to the sewer system. The District then began communicating with City staff about including the framework for the system as part of the 42nd Avenue South Road Improvement Project. Mr. Dick commented that annexation into the Valley View Sewer District by the Loop area residents was anticipated and the process was included in the Interlocal Agreement between the City and the sewer district. Valley View has made attempts to involve the residents in the conversation about the project, as all property owners are concerned about the costs. The District has been working on a grant application for the project and, if awarded, the costs for property owners would decrease. However, if there is no funding available or the other financing options are denied, the District could cancel the project. That decision would be made by the Valley View Sewer District Commissioners. Mayor Haggerton announced to all residents in the audience that Public Works staff would assist the sewer district on funding /grant opportunities for the project. Tukwila City Council Committee of the Whole Minutes October 12, 2015 Page 4 of 9 Garcia Quevedo, 4420 South 156th Street, stated that he heard about the possibility of sewers being installed in the area a few months ago. He attended the open house at the Valley View Sewer District office and was told that the decision to install the sewers in his area had already been decided. He feels this decision will have a large impact on him and his neighbors, as most are retired and on a fixed income. He feels there was a lack of communication on the proposed sewer project and the affected neighborhood had virtually no input. He encouraged the Council to talk to the residents that are facing this large assessment. Charles Trett, 15617 47th Avenue South, spoke against the proposed sewer installation for the area. He stated that research he conducted about septic systems shows that septic systems are good for the environment and the watershed. During his research he found an article by the Environmental Protection Agency (EPA) that stated septic systems are a cost effective, long -term option for meeting public health and water quality goals. Additionally, while reviewing the Valley View Sewer website, he noticed an article that talked about how the current sewer system infrastructure is overloaded. Prior to attending the meeting this evening, he spoke to several of his neighbors about the proposed sewer installation, and none of them expressed any interest in the project. It is his opinion that the sewers are not needed and not wanted. Robert Murphy, 4350 South 156th Street, spoke against the proposed sewer project. He feels the residents of the Loop area will be forced to 'upgrade' to sewers when it is not necessary. This change will be very expensive, and people living on fixed incomes cannot afford the added costs. Sharon Mann, 4452 South 160th Street, spoke in favor of the proposed sewer project. She explained that in her experience as a real estate agent, a home with a septic system is more difficult to sell and the inspections are much more intense than in past years. Ms. Mann updated the Council on a recent viewing of a house within the Loop area where the interested parties walked away from the home due to the lack of sewers. Mike Williams, 15815 47th Avenue South, voiced his concern with the project. He feels that education on how to maintain a septic system would aid people. Today, if he were to try and sell his house, with the added $30,000 sewer costs, he would be expected to accept a lower price to mitigate that charge. He feels that he did not have a voice in the decision, and he had several questions about the current expenses for the proposed project. Additionally, he inquired about the actual costs to the property owners for the sewer system, and if they would also be required to purchase and install any additional equipment. Greargette Trujillo, 15436 42nd Avenue South, stated she is an Elder with the Apostolic Assembly and the church is in favor of the proposed sewer system. There are one or two houses in the area that are dumping sewage into a nearby stream, presumably because their septic systems have failed. She feels the properties are less valuable with a septic system and it also limits additions to the homes. Without the proposed sewers, the church will not be able to move forward with additions to the facility. Steve Crowe, 15633 44th Avenue South, said he is opposed to the proposed sewer. He was an informed buyer; he bought his home six years ago, and he has not had any issues with his septic system. In his opinion, having to pay additional fees and assessments is going to impact everyone's already tight budget, and he feel the proposed sewer system is not necessary. Dennis Martinez, 4660 South 160th Street, said his background is in construction and piping. He voiced his concern with the preliminary costs distributed by Valley View. The citizens in the area of the proposed sewer project have not been given the opportunity to provide input on the project. A lot of residents who live in the affected area are older, retired residents that simply cannot afford this. If the project moves forward, he suggested that Valley View hire local individuals, through established programs, to perform the work. Del Kralman, 4430 South 158th Street, voiced his concern with the proposed project. During the presentation, there were comments about possible financial assistance. However, there have been no assurances and the possibility of having a lien on his property for the sewer installation costs is disconcerting. Tukwila City Council Committee of the Whole Minutes October 12, 2015 Page 5 of 9 Brennen Wilson, 4803 South 162 "d, stated that he is on a fixed budget. However, the homes on the slopes of the Loop area with the septic systems have their effluent water going into the groundwater. The septic systems are not certified on an annual basis and have been in the ground for many years. He feels this causes a public health concern. He feels sewers are the answer for protecting the community over the long term. Jeremy Lawrence 15518 44th Place, said that with the added cost of the proposed sewers will come a benefit as well. The benefit to this cost over the long term is higher property value, increased public safety from disease and more ability to build in the Loop area. Councilmember Hougardy asked if grinder pumps would be required for some properties after sewer installation. Mr. Dick said that no private grinder pumps would be needed for properties connected to the sewer system. Councilmember Ekberg asked how the project designer was selected and what process was used to determine the engineer's estimate. Mr. Dick clarified that Valley View Sewer District contracted with two consulting engineers for the proposed project. They were selected through the state's procurement process. Both the engineering firms and the District have extensive experience designing sewer systems. Council President Kruller asked if the financial assistance referred to in the presentation is readily available to the citizens. Mr. Dick explained that the funding would not come from the sewer district; it would come through the King County Housing Repair Program. The program is income based and would cover the side sewer construction costs. Additionally, there are Community Block Grants that are being pursued, and that program is also designed for low income households. Council President Kruller asked about the possibility of local companies being hired to perform the work Mr. Dick stated there are very specific requirements relating to bids and reporting that have to be followed. The district has not used the State Revolving Fund before; therefore, he does not have information available to answer that question at this time. CITIZEN COMMENTS Charles Tyson, 5617 South 149th Street, explained that his comments about ethics at the September 28, 2015 Council meeting were cut short during "Citizen Comments." At this time he would like to ask specific questions of Mayor Haggerton and Councilmember Duffie. Mayor Haggerton stated the time provided under "Citizen Comments" is for citizens to address the Council. Councilmember Duffie had no comment to the questions posed by Mr. Tyson. Mr. Tyson referenced a letter he sent to Mayor Haggerton. He read a portion of the letter explaining that while a criminal complaint was filed against him for harassment, he was cleared of those accusations by the Tukwila Police Department and the City's prosecuting attorney. From his standpoint, comments made at the July 27, 2015 Council Meeting were further accusatory in his direction. He feels that speaking about this now under Citizen Comments is the proper forum to address this matter. Those accused of something should be able to face their accuser directly. City records show an earlier ethics violation by this person cost the City $25,000. The purpose of him speaking about this issue is to clear his family name. Zak Idan, 5570 South 152nd Street, #27, thanked the City for TukTV and complimented the City for broadcasting the meetings; it keeps him in touch with the City and current events. Tukwila City Council Committee of the Whole Minutes October 12, 2015 Page 6 of 9 Dennis Martinez, 4660 South 160th Street, stated that all construction companies have to abide by the laws, but that does not mean that citizens and companies cannot work for the City. He would like to see the City bring in project labor agreements and have them signed before projects are started. He would like to see the City open job opportunities to the younger people of the community to encourage them to maintain residence in the City. Councilmember Quinn asked if other jurisdictions besides the ones Mr. Martinez mentioned (King County, Seattle, Port of Seattle) are using these agreements. Mr. Martinez replied that the University of Washington and Seattle University also use the labor agreements, as they are a good deal for everybody. He has several projects under way in the Seattle area where the project labor agreements are used. These agreements allow the laborers to make a decent, living wage. The trades are helping educate the youth to learn about the trades by going to the schools with Trade Fairs. SPECIAL ISSUES a. A resolution expressing support for the "Best Starts for kids Levy." Title: King County Proposition No. 1 — Regular Property Tax Levy for Children, Youth, Families and Communities. Public Comments will be accepted. Laurel Humphrey, Council Analyst, explained that King County Proposition No. 1, Regular Property Tax Levy for Children, Youth, Families and Communities, is on the November 3, 2015 ballot, requiring a simple majority to pass. If approved, levy proceeds of $0.14 per $1,000 of assessed valuation will provide funding for prevention and early intervention efforts affecting children, youth and families. The draft resolution before the Council would support the levy and encourage eligible voters to do so as well. Council President Kruller called for public comments. There were no public comments. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. b. Tukwila Urban Center Pedestrian /Bicycle Bridge: Receipt of public comments and acknowledgement of de minimus use of Christensen Road property. Councilmember Duffie indicated this item was discussed at the Transportation Committee meeting on October 5, 2015. The committee members were unanimous in recommending approval. Bob Giberson, Public Works Director, explained the Council is being asked to accept public comments for the Tukwila Urban Center Pedestrian /Bicycle Bridge Project and acknowledge the de minimus use of public park and habitat restoration property at the Christensen Road property. Federal grant requirements include obtaining National Environmental Protection Act (NEPA) approval and compliance with Section 4(f), which requires all potential impacts to be analyzed for prudent alternatives prior to implementation of a project. 9:00 P.M. Councilmember Quinn exited the Council Chambers. Per the requirements of 23 CFR 774.5(b)(2)(i) regarding coordination of public review and comment concerning the effects on parks, recreation areas, and wildlife and waterfowl refuges, public comments will be accepted at the Council Committee and full Council meetings where this topic is discussed. Council President Kruller called for public comments. There were no public comments. Council President Kruller stated that the record should show that the Council acknowledges de minimus use of Christensen Road property. Tukwila City Council Committee of the Whole Minutes October 12, 2015 c. Impact fee deferrals: Page 7 of 9 Councilmember Hougardy indicated this item was discussed at the Finance and Safety Committee meeting on October 6, 2015. The committee members were unanimous in recommending approval. (1) Ordinances (3) establishing a fee deferral policy relating to transportation, fire and park impact fees. (2) A resolution establishing a fee deferral process for building permit fees. 9:02 p.m. Councilmember Quinn returned to the Council Chambers. Brandon Miles, Economic Development Liaison, explained the Council is being asked to consider possible adoption of a fee deferral program to allow delayed collection of certain building and impact fees in order to encourage residential and mixed -use development within the Transit Oriented Development area of Southcenter. The program will not result in a waiver or reduction of any required fees. 9:02 p.m. Councilmember Duffle exited the Council Chambers. A fee deferral is not a waiver or reduction of fees, rather a delay in the timing of collection of the fees. A development project has to expend a considerable amount of funds well 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 delays the payment of the fees into the future, thus allowing the developer to begin generating revenue before fees become due. 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 Transit Oriented Development (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 the Mayor be permitted to execute the fee deferral agreements on behalf 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 would be authorized to include any other provisions or requirements in the deferral agreement that he /she deems necessary to meet the intent of the ordinance /resolution, to protect the financial interest of the City, and /or to protect the public welfare. 4. Interest would 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 note. The following are specific provisions for the three proposed impact fee deferrals: 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. 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 permit fee deferral: Tukwila City Council Committee of the Whole Minutes October 12, 2015 Page 8 of 9 1. 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 may still be under review by the City. It would create significant logistical issues for staff to allow all the permit fees to be deferred. 2. The building permit fee must be greater than $300,000 and only the building permit fee that is due at time of permit issuance 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. 9:06 p.m. Councilmember Duffie returned to the Council Chambers. Councilmember Robertson commented that the idea about this process was first discussed in April 2015. He reiterated that there will be no loss or collection of the fees. Brennan Wilson, 4803 South 162nd Street, asked the Council to use caution with implementing a fee deferral program. He referenced development projects in Seattle and the costs incurred by that city. He feels the City needs to ensure that Tukwila receives a benefit in exchange for agreeing to a fee deferral. The Councilmembers asked clarifying questions of staff on the draft ordinances and resolution. COUNCIL CONSENSUS EXISTED TO FORWARD THESE ITEMS TO THE NEXT REGULAR MEETING. d. Council discussion on process for review of policy decisions related to fire service. Council President Kruller requested a Council discussion on the next steps for review of policy decisions associated with the City's current review of possible annexation to the Kent Regional Fire Authority (RFA). The next steps could include a Council work session, an appointed ad -hoc committee, or other emergent ideas. The RFA Finance Sub - Committee has completed its work, and the RFA Steering Committee plans an update to the Council at the October 19, 2015 Regular Meeting. Council President Kruller stated if the Council chose the option of a Council work session, November 10, 2015, after the Council Committee meeting, is a suggested date. Councilmember Robertson stated he supports the idea of a Council work session, and that November 10 would work only if the Council has received a positive recommendation by the RFA Steering Committee. Mr. Robertson also asked that the current RFA Finance Sub - Committee members (David Cline, Moira Bradshaw and Vicky Carlsen) be in attendance at the work session. Councilmember Seal said she does not feel the RFA Steering Committee will have a recommendation for the Council at the October 19 Regular Meeting. She suggests that the Steering Committee make their recommendation at the November 2nd Regular Meeting, and she is optimistic there would be a good productive discussion at a Council work session on November 10. Councilmember Duffie feels the Council needs all the information that is available in order for the discussion to happen, and to aid in the Council making any decisions. Councilmember Quinn said due diligence is a responsibility of the entire Council. It will be important that all the information available is provided to the entire Council. There was Council consensus to move forward with a Council work session on this topic. It was noted that if all Councilmembers were not available on November 10, 2015, other dates would be considered. Tukwila City Council Committee of the Whole Minutes October 12, 2015 Page 9 of 9 REPORTS a. Mayor There was no report. b. City Council Councilmember Duffie asked the Council to review the information from the Council Analyst relating to 2016 Committee assignments and the 2016 Council Retreat. Councilmember Hougardy attended the Foster High School Alumni Hall of Fame Induction Ceremony on October 7, 2015. On October 9, 2015 she attended the Foster High School Homecoming football game. Councilmember Quinn attended the Foster High School Alumni Hall of Fame Induction Ceremony on October 7, 2015. On October 9, 2015 he attended the Foster High School Homecoming assembly and football game. Councilmember Ekberg attended the Foster High School Alumni Hall of Fame Induction Ceremony on October 7, 2015. On October 9, 2015 he attended the Tukwila Pantry fundraising event and the Foster High School Homecoming football game. Council President Kruller attended the Foster High School Alumni Hall of Fame Induction Ceremony on October 7, 2015. On October 9, 2015 she attended an event where President Obama was in attendance. Ms. Kruller reminded the Council and audience members that October 21, 2015 is Unity Day. "Unity Day — Together Against Bullying. United for Kindness, Acceptance and Inclusion." Council President Kruller displayed an orange shirt for the event and encouraged everyone to wear orange on October 21 in support of Unity Day. c. Staff There was no report. d. City Attorney The City Attorney's presence is not required at Committee of the Whole meetings. e. Intergovernmental There was no report. ADJOURNMENT 9:42 p.m. COUNCIL PRESIDENT KRULLER DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED. Kate,KrAer, Counq/ President Melissa Hart, Deputy City Clerk APPROVED BY THE COUNCIL PRESIDENT: 10126/15 AVAILABLE ON THE CITY WEBSITE: 10/27/15