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Home My WebLink AboutFS 2016-06-02 Item 2 - Discussion - Public Safety Bond ProposalCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Safety Committee FROM: Laurel Humphrey, Council Analyst CC: Mayor Ekberg DATE: May 16, 2016 SUBJECT: Public Safety Bond Proposal ISSUE Discussion and recommendation on which Public Safety Bond package to promote during the public outreach process. DISCUSSION Public outreach on a proposed Public Safety Bond is scheduled to begin in early June. At its April 11, 2016 Facilities Plan Work Session, the Council discussed promoting the following two options to the public during a robust public outreach campaign. Option 1 Public Safety Voter Approved Bond • Justice Center (Police and Courts) • Replace three Stations 51, 52, 54 • Fully fund fire apparatus/equipment General Fund (63:20 and /or LTGO • 50% Shops Facility bonds) • 50% Shops Facility Enterprise funds • 50% Shops Facility Option 2 Public Safety Voter Approved Bond • Justice Center (Police and Courts) • Replace three Stations 51, 52, 54 • Fully fund fire apparatus /equipment • 50% Shops Facility Enterprise funds • 50% Shops Facility Based on assumptions included in the model, under Option 1, the average annual cost to owners of a $250K house would be about $116.00 over the life of the bond. Under Option 2, the average annual cost would be about $145.00 per year. It is important to remember that around 80% of property taxes in Tukwila are paid by commercial properties so they would also bear 80% of the total debt service. The Finance and Safety and Community Affairs and Parks Committees each reviewed the proposed public outreach plan in May, and during those discussions each committee discussed the pros and cons of promoting one or two options to the public. Both committees recommended that the Council refine the outreach to focus on one proposal. On May 17, the Finance and Safety Committee discussed the pros and cons of each option and decided to schedule an additional special committee meeting to continue discussion with the goal of making a recommendation to the full Council at its June 6 meeting. INFORMATIONAL MEMO Page 2 If the City Council gives direction to City staff to proceed, public outreach in June will include a postcard mailing to all households on June 7, followed by the following three open houses: June 22, Fire Station 51, 4 -7 p.m. June 25, Fire Station 52, 10 a.m. — 12 noon June 26, Fire Station 54, 2 -4 p.m. Additional efforts will include block watch meetings (both east and west of 1 -5) as well as presentations (aka the "road show") at existing community group meetings. ATTACHMENTS 1. Council Question Matrix 2. Finance and Safety Committee minutes: 4/19, 5/3, 5/17 3. Community Affairs and Parks minutes: 4/25 H:\ Legislation \facilitiesfinancing.docx 2 2016 Facilities ��U�� ^A�� ~�' � ��~~^^^�^�� Plan ~��"�� COUNCIL ��UN��N�� o��n�~ n��~��mn��x�� Updated Date CouncKmmember Comment/Question Response 1. 3/22/16 Robertson - What is included in 21 M for equipment and apparatus? 20 year bond. It is the equivalent to $900 a year from the general fund, which is what we would need to spend to fufly fund equipment and apparatus if we did it out of the general fund. 2. 3/22/10 Robertson Doos Pan B include the administration's recommendation? Yes 3. 8/22/16 Quinn Was there a reassessment of the numbers? Yes, the numbers were slightly adjusted with the addition of Plan B and are not expected to change. 4. 3/22/16 KRJUgr How long is this proposed bond? 20 years 5. 3/22/10 KrU||8r Why is a proposed PubJic Safety buHding prioritized in this proposal when the shops and fire stations are in such poor condition? This was the recommendation of the steering comm ttee, which prioritized public safety. The Council can make a decision on sequencing. 6. 3/22/16 Robertson What is the impact to homeowner per year for each scenario? Covered in 4/11 Workshop. 7. 3/22/16 Quinn Describe the length of time the City has known of facility deficiencies to the degree they are impacting seMce doUvery. The City's facilities have been an issue since annexations caused some of our staff to double in different work groups – such as police. While the City brought on significantly more staff to provide services to the new residents, expanded or new facilities were not included. Since that time, staif Jevels have only continued to grow to meet the City's service needs and yet, with the exception of acquiring the 6300 buUding, have continued to focus our investments in other capital efforts such as TIB transformation, mn jor infrastructure projects, etc. |D2OO8,GcoDSU|tantstUdyideO[ifi8dth8GigOUiO8OtGeiomicdgficignciesn08DVOfoVrbUi|diDg8 but the subsequent recession did not aflow is to do any major jor investments. Through the 2012 strategic plan process there was a recognition of the importance of city facilities, and council appropriated $350,000 for the facilities study in the 2013/2014 budgetto begin addressing the issue. 8. 4/11/16 Hougardy Can land be included in "capital purposes" re: UTGO? Yes 9. 4/11/16 Hougardy Would like more detail on enterprise program funds, especially to answer to the potential for raising utility taxes More details to foliow. Current proposal for 50% of Public Works Shops to be paid for by utility enterprise funds fall within the expected rate increases due to planning for adequate reserves and contingencies. Rates are reviewed every fall and will undergo constant oversight based on actual consumption, usage and billings. 10. 4/11/16 Quinn Is there risk in the approach regarding enterprise funds considering the aging system? Minimat risk, the City has turned a corner on the sewer failures and the retining project is funded. 11. 4/11/16 Hougardy Woutd like something in writing desoribing the answer given just above. 12. 4/11/16 KrUUer Could you describe previous trends regarding debt capacity? WiU be provided at 5/17 F&S meeting. 13. 4/11/16 Quinn How does this approach impact our bond rating? For both bonds and 63/20. Debt capacity atways impacts bond rating. There isn't a schedule of how particular choices will impactthat. Talk to your financial planner and rating agency, look at peer cities. Hitting a threshold of 50% is a concern and shoutd be vetted. 14. 4/11/16 Quinn | am interested in looking at exampte you provided – capital investments have to make—full menu of things we have to do as a city and have that be evaluated on bond rating. Shoutd we ask rating agency? Rating agency may or may not be helpful. Question to ask is about your overall debt utilization. They may indicate what percentage they look at. 15. 4/11/16 Kruller UTGO 15 dependent on voters. Ifthey don't support levy should we go forward with city shops only? What is the scenario? If this is a package, why would we self-eliminate? Facilities Steering committee looked at if/then statements, and this is a policy question for Council to decide. There are no assumptions about proceeding. Updated 16. 4/11/16 Kruller Fire Stations weren't considered until we sidelined the annexation. How does the priority end up being Public Safety Building and shops? Fire stations 51, 52, 54 was part of Phase 1 and 2 in Facilities Study. All ranked, along with City shops, very low. This order is the same presented in the RFA analysis, although the schedule is faster. Phasing is a Council decision. E ARI 2 SC N Q 17. 4/11/16 Hougardy Is it correct that if the value of a home goes up, the taxes don't necessarily go up? Yes. The City would levy the amount required to meet debt payments. Total assessment value divided by 1,000 divided by levy amount determines the levy rate. The levy rate is then applied to each individual parcel. The impact to the individual parcel is entirely dependent on how all other parcels' assessed value changes as well as the impact of growth (new development). 18. 4/11/16 Robertson, Seal Would like to see the details included in 29 million (YOE) for fire apparatus /equipment. 18m for apparatus, annualized, 3 million for equipment. Details to be provided at the May 3 FS meeting. 19. 4/11/16 Robertson, Hougardy What is the cost difference between Shops funding via 63/20 or LTGO Details and discussion at 5/3 F &S and 5/9 CAP meetings. 20. 4/11/16 Quinn, Seal Would like data relating to service improvements — should be able to talk to voters about the levels of service improvements resulting from these investments. Ballot measure should be very specific. MRSC has list of criteria for ballot measures and details are important. This will be provided at 5/17 F &S meeting. 21. 4/11/16 McLeod How comfortable should we be with these construction cost estimates? These are planning -level estimates prepared by architects at Rice, Fergus Miller with built in contingencies. 22. 4/11/16 McLeod Can we renovate something and make it work to save costs? The architectural assessment considered that question. Long term, City Hall is a candidate for renovation. 23. 4/11/16 Kruller I would like to see all the options included in building costs and where we land on taxes. Since these are planning -level cost estimates, they include contingencies for unknown specifics for future land acquisition, moving, technology, etc., (similar to how the School District treated the early learning center) and certain details (e.g. furniture, fixtures) which have not been designed yet. See high level cost estimates based on market rate per square foot building costs. 24. 4/11/16 Robertson Would a different approach to fire service impact the number of stations needed? This will be provided at 5/17 F &S meeting. ' 25. 4/11/16 Seal When do we have to lock in to a scenario? The proposed outreach plan includes a May 23 postcard mailing inviting people to attend open houses. Council direction by mid -May would be ideal. This allows time for additional F &S Committee review. 26. 4/19/16 Robertson What is the City's capacity to manage concurrent construction of shops and justice center? The cost model factors in project managers for each facility under "other consultant expenses "; however there could be impacts to staff to manage and coordinate land acquisition, design and construction. 27. 4/19/16 Robertson How will Council arrive at decision making point regarding the funding scenario? Finance and Safety will lead this effort while public outreach is ongoing. ,._ a'ai .. .:. .- s Ees :Cot. s t imat .. , 28. 5/3/16 Kruller Why not exempt ourselves from the administrative process of permits /fees? These fees pay for staff associated with plan review, inspections, etc. Exempting this is a policy question. 29. 5/3/16 Robertson Why is land acquisition for public safety so much cheaper for acre? Land acquisition (5 acres) for the public safety building is significantly Tess complicated than the 15 acres industrial required for shops. 30. 5/3/16 Robertson Is the City assuming a location on TIB for public safety? There are no siting assumptions, however the City intends to gather public ideas and opinion during the outreach process. 31. 5/3/16 Robertson What if the actual building costs are lower or higher than this estimate? Do you describe that in the bond measure? If we end up needing Tess how does that work with the bonds? There is a cap for the upper limit that we cannot surpass. If costs are Tess, it could free up money for other buildings but there are legal restrictions on what it can be used for. The City could wait to issue bonds after the Updated 5/18/16 01 project budget is known, then size the bonds, or if the bonds are issued sooner and there is excess it could be used for bond payment. 32. 5/3/16 Robertson How certain are the estimates for site improvements for fire stations? These are real life market estimates that were performed during the RFA review process, including excavation and infrastructure. 33. 5/3/16 Robertson Can the City use existing furnishings/equipment in the new fire stations? Much of the technology such as the dispatch system is obsolete. Some furnishings may be repurposed. 34. 5/3/16 Robertson Are we planning to relocate Stations 52 and 54? Possibly. Locations should be evaluated with regard to optimum service levels and response times. 35. 5/3/16 Robertson What is included in "other consultant expenses"? Appraisal, real estate broker, miscellaneous items such as noise study may be required. 36. 5/3/16 Committee What is the cost difference to a homeowner between shops included in in UTGO or not? $40/year additional if the shops are included in the ballot measure. 63/20 Financing 37. 5/3/16 Kruller Requests a survey of 5 other cities' financing decisions for facilities Auburn City Hall Annex: LTGO; Bothell City Hall: 63-20; Kenmore City Hall: LTGO; King County Goat Hill: 63- 20; Kirkland Public Safety: LTGO; Redmond City Hall: 63-20; Seattle Pacific Place Garage: 63-20; Shoreline City Hall: LTGO 38. 5/9/16 McLeod, Hougardy Is fund management included in the cost estimate? Yes Service Impacts 39. 5/17/16 Robertson When is the last time Tukwila used UTGO funding? Purchase of the golf course in the 70s. 40. 5/17/16 Robertson Is there a difference in call volume in apartments on TIB versus the East side of Old Hill? Minimal difference 41. 5/17/16 Robertson Would it make sense to focus a 4th station on EMT response and place it around 144th? EMT only would mean fire response times would significantly increase in that area. 42. 5/17/16 Kruller Are there innovative service models in other cities that we should be looking at? The City can consider this when making operations decisions and station location analysis. There are King County protocols and rules that may eliminate certain options. There are also industry standards for the minimum numbers of firefighters needed. 43. 5/17/16 Kruller Will there still be a need for prisoner transport service at the Court Yes. with a new facility? 44. 5/17/16 Seal, Robertson What do we need to decide and when? The immediate question is which financing proposal to promote to the public this summer. If Council chooses to place a measure on the November ballot, that action needs to be completed by August 1. 45. 46. 47. 48. Updated 5/18/16 A Finance and Safety Committee Minutes ............................................................ ............................... ..........................April 19, 2016 B. Speed Reduction in Neighborhoods of Tukwila (SPRINT) Police staff updated the Committee on current efforts to address speeding in residential neighborhoods. A committee with representatives from the Mayor's Office, Public Works and the Police Department worked together to identify strategies in the categories of education, engineering, and enforcement. This effort will use existing resources, but if successful, approximately $122,000 will be requested in 2017 to continue the program. Revenues generated from enforcement are expected to be around $116,000 between 2016 and 2017 so the additional budget will be significantly offset. INFORMATION ONLY. C. Draft Facilities Outreach Plan Staff presented a draft facilities outreach plan to the Committee. At the Council Work Session on April 11, 2016, the Council discussed presenting the following two options to the public on addressing public safety facilities: 1) A public safety voter approved bond including a justice center to house police and courts, replacement of three fire stations, and full funding of fire apparatus and equipment. The City would fund replacement of George Long and Minkler shops with 63/20 financing and /or LTGO bonds and half through enterprise funds. 2) A public safety voter approved bond including a justice center to house police and courts, replacement of three fire stations, full funding of fire apparatus and equipment, and half of the shops replacement. The other half of shops would be funded through enterprise funds. The Committee reviewed the proposed key messages, tactics, and timeline, and made suggestions to emphasize public safety improvements and the fact that daily operations are at stake, not just major disaster concerns. The Committee also suggested providing examples of what must be sacrificed if more construction funding comes from the general fund. Additional tactics could include Mayor /Superintendent "Leaders at the Links," faith community, grocery stores, event booths, Google ads, and outreach by Council. Councilmembers and staff discussed the pros and cons of promoting two scenarios versus one, and suggested the Community Affairs and Parks Committee discuss this further when it reviews the outreach plan on April 26. The Finance and Safety Committee will continue to review and discuss funding options in preparation for a recommendation to the full Council. DISCUSSION ONLY. D. Draft 2017 -2018 Budget Outreach Plan Staff presented a draft outreach plan regarding the City's 2017 -2018 budget. The Committee reviewed the proposed key messages, tactics, and timeline. Outreach for the budget will be concentrated primarily in May, freeing time in June for facilities outreach. Councilmember Robertson, noting the importance of the public outreach on facilities, suggested scaling back the tactics regarding the budget to avoid over communication. Councilmember Kruller would like the educational materials to use eye- catching graphics. Chair Seal suggested adding a public event following the Mayor's formal delivery of the budget and before the public hearing. 7 FINANCE AND SAFETY COMMITTEE Meeting Minutes • . r - City Council Finance and Safety Committee May 3, 2016 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Verna Seal, Chair; Dennis Robertson, Kate Kruller Staff: David Cline, Peggy McCarthy, Vicky Carlsen, Brandon Miles, Bob Giberson, Rachel Bianchi, Rick Mitchell, Laurel Humphrey Guest: Louise Jones - Brown, Tukwila Historical Society CALL TO ORDER: Chair Seal called the meeting to order at 5:30 p.m. 1. PRESENTATIONS II. BUSINESS AGENDA A. Asset Transfer Agreement with Seattle Southside Regional Tourism Authority Staff is seeking Council approval of an agreement that would transfer the Seattle Southside Visitor Services' (SSVS) assets to the Seattle Southside Regional Tourism Authority (SSRTA). SSVS ceased being a function of the City at the end of 2015 due to the creation of the Tourism Promotion Area and the SSRTA. The draft agreement transfers the City's ownership interest in various assets including office furniture and supplies and some intellectual property (not including "Think Tukwila," "Tukwila Life," and property associated with the Rock -n -Roll Marathon.) UNANIMOUS APPROVAL. FORWARD TO MAY 16, 2016 REGULAR CONSENT AGENDA. B. 2016 1St Ouarter Police and Fire Financial Report Staff provided the Committee with an 1St quarter status update on the Police and Fire Department budgets, per a reporting schedule agreed to in January. Total expenditures for both departments are below the allocated budget. Councilmember Robertson asked several questions about specific expenditure types and recommended that the next report include written information explaining discrepancies of $25,000 or more. The full Council will soon receive the 20161St Quarter Report, including all departments. INFORMATION ONLY. C. Review of Facilities Plan Council Questions Matrix Staff is maintaining a list of Council questions and responses with regard to the facilities plan, and an updated version was provided for Committee review. Per requests made by Council at previous meetings, the Committee was given details relating to fire apparatus and equipment, construction costs, and differences between 63:20 lease and LTGO bond financing for 50% of the Public Works shops. Questions relating to these were recorded in the matrix. Chair Seal stated that she feels the Council may be ready to select one financing option prior to public outreach in 9 Financeand Safety Committee Minutes ........................................................................................ ............................... May 3, 2016 an effort to streamline the messaging. The Committee asked for an agenda item to be scheduled at the May 23 Committee of the Whole to allow the Council to discuss this further. INFORMATION ONLY. D. Draft 2017 -2018 Budget Outreach Plan Staff presented a draft presentation intended to be used as the basis of the public outreach conducted in May. The information is categorized as follows: City Budget 101, How we Budget, 2015/2016 Priorities and Results, 2017/2018 Priorities, and the Budget Process. These categories will also be used to organize the information presented at the in- person and online open houses. Open houses are being planned for May 21 and 24. Councilmember Robertson suggested renaming the word "transfers" on the pie chart showing general fund expenditures as most people won't know what that means. Staff suggested replacing it with "capital projects." The Committee requested that the Committee of the Whole be given the opportunity to review the presentation at its next meeting. INFORMATION ONLY. E. 20161St Quarter Police Department Report Staff updated the Committee on Police Department items of significance that occurred during the 1st quarter of 2016. The information included a staffing update, 1St quarter highlights, and crime statistics. The Committee expressed support for the Council to receive active shooter training similar to the one provided recently to City employees. INFORMATION ONLY. 111. MISCELLANEOUS The Finance and Safety Committee Meeting adjourned at 8:25 p.m. Nextmeeting: Tuesday, May 17, 2016 ,7 _Committee Chair Approval Minutes by LH 10 FINANCE AND SAFETY COMMITTEE Meeting Minutes City Council Finance and Safety Committee May 17, 2016 - 5:30 p.m. - Emergency Operations Center, Fire Station 51 Councilmembers: Verna Seal, Chair; Dennis Robertson, Kate Kruller Staff: David Cline, Peggy McCarthy, Vicky Carlsen, Mindy Breiner, Don Tomaso, Dawn Judkins, Bruce Linton, Chris Flores, Bob Giberson, Rachel Bianchi, Laurel Humphrey CALL TO ORDER: Chair Seal called the meeting to order at 5:30 p.m. 1. PRESENTATIONS 11. BUSINESSAGENDA A. Fireworks Permit for July 4, 2016 "Family 4th at the Fort" Event Staff is seeking Council approval of a Fireworks Permit Application submitted by Western Display Fireworks Ltd. for the fireworks display at the City's annual 4th of July Celebration at Starfire Sports Complex. The application has been approved by the Fire Marshal and found to be in compliance with standards and regulations, and this vendor and launch location have been working well. The largest aerial shell will be 3 ". UNANIMOUS APPROVAL. FORWARD TO JUNE 20, 2016 REGULAR CONSENT AGENDA. B. Review of Facilities Plan Council Questions Matrix Staff is maintaining a list of Council questions and responses with regard to the facilities plan, and an updated version was provided for Committee review. The Committee was given additional details relating to service level impacts for the Fire Department, Police Department, Municipal Court, and Public Works, as well as historical LTGO debt capacity trends. Questions relating to these were recorded in the matrix. Committee members debated pros and cons of financing options for the proposed Public Safety bond and associated public outreach. The Committee decided to schedule a special meeting on Thursday, June 2 to continue this discussion and to develop a recommendation. DISCUSSION ONLY. III. MISCELLANEOUS Acting Chief Flores announced that on Wednesday, June 1, there will be a ribbon transfer ceremony at Station 51 in honor of Captain McCoy. His ribbon will be delivered to the State Capitol, where he will also be honored at a Fallen Firefighters Memorial Service on June 5, 2016 at 1:00 p.m. in the Rotunda. 11 Finance and Safety Committee Minutes ..................................................................................................................... May 17, 2016 The Finance and Safety Committee Meeting adjourned at 8:48 p.m. Nextmeeting: Tuesday, May 17, 2016 ,-;�,A�'-Committee Chair Approval Minutes by LH 12 City of TAM Citv Council Community Affairs and Parks Committee COMMUNITY AFFAIRS AND PARKS COMMITTEE Meeting Minutes April25, 2016 - 5:30 p.m. - Council Chamber, City Hall Councilmembers: De'Sean Quinn, Chair; Kathy Hougardy, Thomas McLeod Staff: David Cline, Jack Pace, Laura Benjamin, Evie Boykan, Minnie Dhaliwal, Nora Gierloff, Rachel Bianchi, Bruce Linton, Laurel Humphrey Guest: Katrina Dohn, resident CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m. 1. ANNOUNCEMENT 11. BUSINESS AGENDA A. Ordinances: Housekeeping Amendments to Titles 17,18,19 and 21 of the Municipal Code Staff is seeking Council approval of four ordinances that would amend the Zoning, Subdivision, SEPA, and Sign Code Titles of the Municipal Code to incorporate a variety of housekeeping amendments as described in detail in the staff report. The Planning Commission held a public hearing on March 24, 2016 and recommends approval of the amendments as proposed. Councilmember Hougardy noted she has suggestions for sign regulations that would help smaller businesses and would like to discuss those with staff. One suggestion would be to reduce the permit fee if certain criteria is met, and staff said that could be addressed when the fee resolution is brought forward later this year. Chair Quinn asked that individuals who served on the Sign Code Committee be notified of the public hearing. He also stated his expectation that code amendments are reviewed for consistency with the Strategic Plan. UNANIMOUS CONSENT. FORWARD TO MAY 9, 2016 COMMITTEE OF THE WHOLE FOR PUBLIC HEARING AND DISCUSSION. B. Draft Facilities Outreach Plan Staff presented a draft facilities outreach plan to the Committee. At the Council Work Session on April 11, 2016, the Council discussed presenting the following two options to the public on addressing public safety facilities: 1) A public safety voter approved bond including a justice center to house police and courts, replacement of three fire stations, and full funding of fire apparatus and equipment. The City would fund replacement of George Long and Minkler shops with 63/20 financing and /or LTGO bonds and half through enterprise funds. 13 Community Affairs and Parks Committee Minutes ..................................................................... ............................... April25, 2016 2) A public safety voter approved bond including a justice center to house police and courts, replacement of three fire stations, full funding of fire apparatus and equipment, and half of the shops replacement. The other half of shops would be funded through enterprise funds. The Committee reviewed the proposed key messages, tactics, and timeline. Additional suggestions included a special edition of printed Hazelnut, inclusion of block watch captains, senior field trips, outreach at library, places of worship, and light rail stations, and a high level of collaboration with school district. As requested by the 4/19 Finance and Safety committee, Councilmembers discussed the pros and cons of promoting two scenarios versus one. The Committee was in favor of advancing this discussion to the Committee of the Whole and agreed that additional information on 63/20 versus LTGO financing would be helpful. DISCUSSION ONLY. C. Review of Draft Housing Options Matrix Staff provided an overview of current and potential efforts addressing housing condition and affordability, divided into four main categories: housing type /options, housing condition, affordability, and homelessness. Committee members reviewed a table reflecting items that are funded and in the workplan as well as potential ideas forthe Council to give future direction, possibly in the 2017 -2018 Budget. Chair Quinn stated that he would like to see educational opportunities for Councilmembers to greater understand the possibilities of creating affordable housing. Staff would like to take the Committee to visit a mixed income development in West Seattle for an example of a quality project. Also, the Housing Development Consortium is sponsoring Affordable Housing Week from May 16 -22, which will bring other options for engagement and education. Chair Quinn asked for follow -up to the Allentown resident comment letter dated April 6, 2016 and presented at the last Committee meeting. The Committee expressed support for finding a solution to address the concerns raised in the letter. INFORMATION ONLY. III. MISCELLANEOUS The Community Affairs and Parks Committee Meeting adjourned at 6:53 p.m. Next meeting: Monday, May 9, 2016 0& Committee Chair Approval Minutes by LH 14