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HomeMy WebLinkAbout2015-11-09 Committee of the Whole MinutesTukwila City Council Committee of the Whole Meeting City Hall Council Chambers November 9, 2015 — 7:00 P.M. 11 L COMMITTEE OF THE WHOLE CALL TO ORDERIPLEDGE OF ALLEGIANCE Council President Kruller called the Tukwila City Council meeting to order at 7:00 p.m. Joyce Trantina, Project Development Manager, 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; Bob Giberson, Public Works Director; Rachel Bianchi, Communications and Government Relations Manager; Mike Villa, Police Chief; Derek Speck, Economic Development Administrator; Joyce Trantina, Project Development Manager; Jack Pace, Community Development Director; Minnie Dhaliwal, Planning Supervisor; Peggy McCarthy, Finance Director; Laurel Humphrey, Council Analyst; Melissa Hart, Deputy City Clerk. CITIZEN COMMENTS There were no citizen comments. PUBLIC HEARINGS a. An ordinance increasing the regular property tax levy from the previous year commencing January 1, 2016. The City is required to hold a Public Hearing for adoption of the 2016 property tax levy as required by RCW 84.55.120. The City was notified on October 15, 2015 that the assessed value for Tukwila for 2016 is projected to be $5,222,624,289. 7:01 p.m. Council President Kruller opening the Public Hearing. David Cline, City Administrator, commented that the hearing this evening is the typical public hearing on adoption of the 1 % property tax levy. Mr. Cline referred to the materials included in the agenda packet (pages 1 -12) for Council reference. This year the Council will consider legislation related to substantial need due to the low Implicit Price Deflator. Peggy McCarthy, Finance Director, explained there are three ordinances before the Council for consideration to levy the property taxes for 2016. Annually, the City adopts two legislation items that levy the taxes for the following year. This year, the City needs to adopt a third ordinance that declares substantial need in order to levy the full 1 %. State law allows the City to increase property taxes by 1 % or the Implicit Price Deflator (IPD), whichever is less, unless an additional ordinance showing substantial need is adopted by the City Council. The ordinance showing substantial need must be approved by a majority plus one. The IPD for calculating the 2016 property tax levy is .0025 %, substantially less than 1 %. The allowable levy projected by King County and documented on the Preliminary Levy Limit Worksheet -2016 Tax Roll using the IPD is $14,388,492. The allowable levy using 1% is 14,495,407, representing additional property tax revenue of $106,915 if City Council approves the ordinance showing substantial need. Councilmember Hougardy asked why the City is levying the full 1% rather than the lessor IPD Tukwila City Council Committee of the Whole Minutes November 9, 2015 Page 2 of 6 Ms. McCarthy explained that it has been the City's policy to levy the full 1 %, and the 2015 -2016 Biennial Budget is based on levying the full 1 %. Councilmember Quinn asked when the City must adopt the tax legislation that will levy the 2016 taxes. Ms. McCarthy stated the City must adopt the tax legislation and provide copies of the legislation to King County by November 30, 2015. Councilmember Quinn asked why the Council d.id not review the upcoming budget amendment prior to adopting the 2016 tax levy. Ms. McCarthy explained that historically the budget amendment is reviewed at the first Finance and Safety Committee meeting in November. However, the first Finance and Safety Committee meeting this year was cancelled due to election night and Councilmember attendance at the National League of Cities Conference. Council President Kruller asked staff to explain what the property tax levy will mean for those who are on a fixed income. Ms. McCarthy clarified that the City is allowed to levy and collect a certain percentage of tax based on a property's assessed valuation. King County has completed the 2016 assessments and the levy is based on that property assessment. While some residential property assessments have increased, the commercial property assessments have also increased. Dennis Martinez, 4660 South 160th Street, voiced his support for the 1 % levy that is being proposed. Brennen Wilson, 4803 South 162nd Street, commented that if the IPD was lower for Tukwila, it is likely that the IPD would be lower for other cities, and he felt the other jurisdictions would be levying the standard 1 %. He voiced his support for the 1 % property tax levy. 7:15 p.m. Council President Kruller closed the Public Hearing. b. An ordinance approving and authorizing the second amendment to the 223 Andover Park East Development Agreement with South Center WA, LLC. The owners of 223 Andover Park East have requested an amendment to the Development Agreement to allow an increase in maximum height from 190 feet to 195 feet. 7:17 p.m. Council President Kruller opening the Public Hearing. Minnie Dhaliwal, Planning Supervisor, explained the City executed a Development Agreement in March 2013 with South Center WA, LLC, to allow a 180 foot high building that included apartments and a hotel. Subsequently, the Development Agreement was amended to allow a maximum height of 190 feet. The developer has continued to work on the detailed construction plans and has determined that additional height is required. The final design includes 185 hotel rooms and 371 apartments with a total of 19 floors. Detailed building permit drawings have been prepared, and the maximum height of the building at mid- point of the sloping roof is now shown as 192 feet and 10 inches, which is higher than the maximum allowed under the Development Agreement. The height at the highest point of the sloping roof is 195 feet and the elevator penthouse roof is at 196 feet with parapet walls at 202 feet. The proposed second amendment to the Development Agreement allows the maximum building height of 200 feet for 50 percent of the site. Additionally, it allows the maximum height of the parapet wall of the elevator penthouse to be 205 feet. Councilmember Ekberg inquired about the maximum height for wireless facilities, and whether that height would be in addition to the overall height of the proposed building. Tukwila City Council Committee of the Whole Minutes November 9, 2015 Page 3 of 6 Ms. Dhaliwal said wireless facilities installed within the City are required to meet the requirements as identified in the Tukwila Municipal Code section entitled "Wireless Communication Facilities," and that the maximum height allowed for wireless facilities would be a height of 20 feet. Additionally, City staff received information from AT &T showing they would not install cellular towers and /or equipment on a building that exceeds 100 feet in height. Dennis Martinez, 4660 South 160th Street, referencing the proposed building height, stated that the height of standard mechanical equipment (air handling units, cooling towers, etc.) should be considered when the Council is discussing the overall building height. Ms. Dhaliwal clarified that the mechanical equipment will have a separate enclosure, and it will be no higher than 190 feet. Councilmember Ekberg asked what Federal Aviation Administration (FAA) requirements are for lighting atop a 195 foot high building. Ms. Dhaliwal said she is not familiar with FAA lighting requirements. However, the applicant has been in contact with the FAA regarding the project. Councilmember Quinn asked if there are any other proposed changes by the developer to the design of the project. Ms. Dhaliwal stated the structural drawings have been completed, so additions would start the review process over again. The applicant has submitted a request for modification to the colors, materials, and landscape that are currently under review by the Board of Architectural Review. 7:30 p.m. Council President Kruller closed the Public Hearing. SPECIAL ISSUES a. Tax levy legislation: (1) An ordinance relating to the limiting factor for the regular property tax levy above the rate of inflation. (2) An ordinance increasing the regular property tax levy from the previous year commencing January 1, 2016. (3) An ordinance levying the general taxes for the fiscal year commencing January 1, 2016. Levy Amount The assessed value and the allowable levy are subject to change until final levy rate determination. A levy amount of $14,700,000 will be used for the ordinance. If the final allowable levy is less than the ordinance amount, King County Department of Assessments will adjust the ordinance amount to the final allowable levy amount and no further action by the Council will be required. Levy Limit RCW 27.12.390 allows for a maximum statutory levy rate for cities at $3.60 less the actual regular levy made by a library district. RCW 41.16.060 also allows for an additional levy of $0.225 if a city has a firemen's pension fund. The maximum allowable levy for 2016 is estimated to be $3.39836. However, due to the 1 % limitation, the Levy Limit Worksheet received from King County estimates the City's preliminary levy rate for 2016 at $2.77550, the ordinance estimates the rate at $2.82 and the actual rate, after all valuations and the final King County worksheet have been completed, will be a rate that lies within the range of these two rates. COUNCIL CONSENSUS EXISTED TO FORWARD THESE ITEMS TO THE NEXT REGULAR MEETING. Tukwila City Council Committee of the Whole Minutes November 9, 2015 Page 4 of 6 b. An ordinance approving and authorizing the second amendment to the 223 Andover Park East Development Agreement with South Center WA, LLC. Councilmember Seal indicated these items were discussed at the Community Affairs and Parks Committee meeting on October 26, 2015. The committee members were unanimous in recommending approval. Councilmember Seal commented that the Fire Department has been a part of the process associated with the proposed development at 223 Andover Park East. The design review application for the proposed development was approved by the Board of Architectural Review on May 23, 2014. Recently, the developer submitted a request for minor modifications to the approved design including modifications to colors, materials, landscape and building height. Tukwila Municipal Code authorizes the Director of Community Development to approve minor modifications to the design review approval. However, Section 5 of the Development Agreement prohibits any changes to the development standards section from being considered minor modifications. Per the language in the Development Agreement any changes to the development standards have to be approved as a major amendment to the Development Agreement. The other minor modifications to the design review application and the building permit are currently under review. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. c. A bid award for the Urban Renewal Demolition Project. Councilmember Seal indicated this item was discussed at Community Affairs and Parks Committee meetings on September 28, 2015 and November 9, 2015. Bob Giberson, Public Works Director, explained the City received six bids in response to the advertisement for bid on the Tukwila International Boulevard Redevelopment Project (motel demolition). The bids were opened on October 22, 2015, and Construction Group International, LLC was the low bidder for the project. The base bid includes the demolition of the Great Bear, The Boulevard, The Spruce and Sam Smoke Shop. The price for Schedule (Alternate No. 1, demolition of the Traveler's Choice), was $132,779.70. Derek Speck, Economic Development Administrator, explained that the Traveler's Choice Motel demolition was a separate bid line because that property had not been included in the City's plans for future development. While working on this project, a suggested use of the facility was presented to City staff to lease the motel property to 4Culture for use as artist studios, galleries, work space, practice space or performances. Mr. Speck stated the choice before the Council this evening is whether to demolish all the motel properties at the same time, or move forward with the base bid, excluding the Traveler's Choice. Councilmember Seal explained this topic has been discussed on two separate occasions at the Community Affairs and Parks Committee (CAP). Ms. Seal reviewed some of the concerns discussed at the CAP Committee meeting earlier this evening, and she feels the proposed use of the facility would provide the infusion of art into the area. Ms. Seal voiced her support for waiting to make a decision on the demolition of the Traveler's Choice Motel until after the 4Culture Board has reviewed this item at their next board meeting. Councilmember Ekberg asked if it would impact the project if the City were to delay awarding the contract to the contractor. Mr. Giberson stated the contractor is excited for the opportunity, and the City has 90 days to award the contract. Councilmember Hougardy explained the proposed plan sounds good. She asked if there is a financial risk with the proposed alternate use of the Traveler's Choice Motel site. Tukwila City Council Committee of the Whole Minutes November 9, 2015 Page 5 of 6 Mr, Speck said there is a risk to the City with the alternative that delays the demolition of the Traveler's Choice Motel. The 4Culture Board will vote on the proposed use of the site on December 2, 2015, and then City staff would begin the negotiation process for the lease terms. He noted that if the City chooses to move forward with the demolition of the Traveler's Choice Motel with the other properties, the Council would need to approve a budget amendment for $140,000. Mr. Giberson added there is a risk the City would receive bids with higher costs for a future demolition. Councilmember Quinn asked staff about the term of the lease. Mr. Speck stated staff is proposing a five -year lease, with a one -year termination clause. The City could provide notice of termination to 4Culture in the third year of the lease. Council President Kruller commented on the budget and bid summary section of the Informational Memorandum on page 33 of the agenda packet. She asked why there is a variation in the figures provided as the engineer's estimate and budget amount. Mr. Speck explained the City's consultant, PBS Engineering + Environmental, provided the engineer's estimate for the project. When the 2015 -2016 Biennial Budget was drafted a best guess estimate was included for the demolition portion of the project. At the time the budget was developed, it was thought that the motel structures would be demolished and the other items such as utilities, foundation, concrete, etc. would remain in place, with fencing to protect the property. As the project moved forward it was decided that the demolition project would include removal of the utilities, improvement to storm drainage, removal of foundation and all concrete areas and grading to the property. Council President Kruller asked the 4Culture representative to provide their input on the proposed partnership. Debra Twersky, Manager of Funding Programs, 4Culture, stated that 4Culture has had an interest in South King County cities for many years. Ms. Twersky said 4Culture staff is currently completing review of the possible project. There are very few art and heritage facilities located within South King County due to limited real estate. They feel the opportunity will provide a great focus on the area's local artists, and the proposed site would bring more art into the community. If the partnership between the City and 4Culture moves forward, 4Culture proposes to have an on -site manager for general security and oversight of the facility. Additionally, the site would not provide living spaces for artists, rather studio space for artists to work on their craft and show their pieces. They would also suggest having the larger spaces as public spaces for poetry readings, art shows, etc. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE DECEMBER 7, 2015 REGULAR MEETING. REPORTS a. Mayor Mayor Haggerton announced that the Mayor's Office will prepare a presentation on the recent National League of Cities (NLC) Conference for a future Council meeting. He reviewed some of the speakers at the conference, which included Vice President Joe Biden. He attended the Western States Meeting, and some of the mobile tours, which provided a great deal of information and ideas for the City. He encouraged the City to continue funding City attendance at these types of conferences. b. City Council Councilmember Duffie attended the NLC Conference November 4 -7, 2015. He reminded everyone of the Veterans Day event at the Tukwila Community Center on November 10, 2015 beginning at 10:00 a.m. Councilmember Ekberg attended the NLC Conference November 4 -7, 2015 Tukwila City Council Committee of the Whole Minutes November 9, 2015 Page 6 of 6 Councilmember Seal commented that she recently spoke with Leon Andrews, Director of the NLC Race, Equity and Leadership Counsel. Mr. Andrews announced they will be visiting the City and Tukwila School District in January. She asked the Council to consider including student delegates to the next NLC Conference. Ms. Seal announced that the two code updates relating to parking were discussed earlier this evening, and staff will continue to work on those items and return to a future Community Affairs and Parks Committee meeting. She announced that the next Council Coffee Chat will be held on November 21, 2015 at Fire Station 51. Councilmember Hougardy attended the NLC Conference November 4 -7, 2015, and she reviewed some of the mobile tours she participated in. Ms. Hougardy explained that she took a lot of pictures and notes, and she will prepare a slideshow for the Council to review at the next Regular Meeting. Councilmember Quinn updated the Council on his past activities. On October 16, 2015 he attended a conference in Washington D.C. at the White House on Power and Policy that was very informative. He recently participated in a conference call with the Governor's Office where the topic of conversation was on the Governor's upcoming spring (2016) conference on equity. Additionally, he was invited to speak at a future conference relating to education in Tukwila. Council President Kruller attended the NLC Conference November 4 -7, 2015. She reviewed the key meetings she attended for the Council, and stated she would prepare a written report to share with the Council on the many great ideas and topics of discussion during the conference. 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 8:31 p.m. COUNCIL PRESIDENT KRULLER DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED. Kate K/r&fer, Cot (tEil President Melissa Hart, Deputy City Clerk APPROVED BY THE COUNCIL PRESIDENT: 11/24/15 AVAILABLE ON THE CITY WEBSITE: 11/25/15