HomeMy WebLinkAboutReg 2016-08-01 Item 6A - Ordinance - Public Safety Bond on November 8 General Election BallotCOUNCIL AGENDA SYNOPSIS
---------------------------- - - - - -- Initials
Me tin g Date
PrIpared �y
Ma yx nevi
Countil review
07/18/16
LH
❑ Resolution
-Alt Date
Ordinance
Mtg Date 811116
07/25/16
LH
El 01ber
MIS Date
SPONSOR Council E Mayor E].HR ❑ DCD E].Finance E].Fire ❑ IT ❑ P&R ❑ Police ❑ PWI
08/01/16
LH
RECOMMENDATIONS:
SPONSOR/ADMIN.
Comm 1'I'I'I
COST IMPACT / FUND SOURCE
Exi)1-,1*NDITUIU,1' R1-,'QUIRH'D AMOUNT BUDGETED APPROPRIATION REQUIRED
$N/A $N/A $N/A
Fund Source:
Comments: The F&S Committee will engage in additional review of the General Fund impacts of the Public
Safety Plan.
MTG. DATE
RECORD OF COUNCIL ACTION
7/18/16
ITEM INFORMATION
ITEM NO.
53
STAFF SPONSOR: LAUREL HUMPHREY
07/18/16
AGENDA 1'n3m TITLE Public Safety Plan
CATEGORY M Discussion
,g Date 7129116
Mt
motion
Ali
,g Date 811116
❑ Resolution
-Alt Date
Ordinance
Mtg Date 811116
❑ Bid Award
Mig Date
Public Hearing
Mi g Dale 7118116
El 01ber
MIS Date
SPONSOR Council E Mayor E].HR ❑ DCD E].Finance E].Fire ❑ IT ❑ P&R ❑ Police ❑ PWI
SPONSOR'S The City Council is considering a Public Safety Plan to fully fund fire, police and other first
SUMMARY responders by investing in safe, modern facilities and providing essential life/safety
equipment. This would include a bond measure on the November 8, 2016 ballot that would
fund the replacement of Fire Stations 51, 52, and 54, build a Justice Center to house Police
and Court, and fully fund fire apparatus and equipment for the next twenty years.
REVIEWED BY ❑ cow mtg. ❑ CA&P Cmte N F&S Cmte ❑ Transportation Cmte
❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. F-1 planning Comm.
DATE: 07/6/16 (MULTIPLE) commiTTIEE CHAIR: SEAL
RECOMMENDATIONS:
SPONSOR/ADMIN.
Comm 1'I'I'I
COST IMPACT / FUND SOURCE
Exi)1-,1*NDITUIU,1' R1-,'QUIRH'D AMOUNT BUDGETED APPROPRIATION REQUIRED
$N/A $N/A $N/A
Fund Source:
Comments: The F&S Committee will engage in additional review of the General Fund impacts of the Public
Safety Plan.
MTG. DATE
RECORD OF COUNCIL ACTION
7/18/16
Forward to next meeting
7/25/16
Forward to next meeting
8/1/16
MTG. DATE
ATTACHMENTS
7/18/16
Informational Memorandum dated 7/12/16
Draft Ordinance
7/25/16
Informational Memorandum dated 7/12/16 and Draft Ordinance
I Powerpoint Prpspntatinn
8/1/16
Informational Memorandum dated 7/12/16
Ordinance in strike-thru. underlined fomat based an rhanaps frnm 7/?S/Ifi C n
53
54
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: City Council
FROM: Laurel Humphrey, Council Analyst
CC: Mayor Ekberg
DATE: July 12, 2016
SUBJECT: Public Safety Plan
ISSUE
The City Council is considering a Public Safety Plan to fully fund fire, police and other
first responders by investing in safe, modern facilities and providing essential life /safety
equipment. This would include a bond measure on the November 8, 2016 ballot that
would fund the replacement of Fire Stations 51, 52, and 54, build a Justice Center to
house Police and Court, and fully fund fire apparatus and equipment for the next twenty
years. Another component of the Public Safety Plan is the replacement of the City's
Public Works shops, which would be funded equally by Enterprise Funds and by the
General Fund.
BACKGROUND
The Public Safety Plan was informed by the City's multi -year review processes around
the Kent Regional Fire Authority and the Facilities Needs Assessment and Feasibility
Study. In December 2015, the Facilities Steering Committee issued a recommendation
regarding funding and phasing alternatives for replacement or renovation of the City's
aging, outgrown, and /or unsafe facilities. In early 2016, the City Council decided to set
aside the issue of annexing into the Kent Regional Fire Authority and focus on ensuring
the long -term financial health of fire service as a function of the city. These two efforts
converged into the Public Safety Plan described above.
DISCUSSION
Council Review
In 2016, the City Council review of the Public Safety Plan has included three full Council
work sessions and in -depth exploration by the Finance and Safety Committee over
several meetings between April and July. Over the course of these meetings,
Councilmembers reviewed and discussed current facility conditions, service level
impacts resulting from deficiencies, financing tools, cost analyses and various funding
scenarios. At its June 6, 2016 meeting, the City Council gave direction to staff to
proceed with public outreach on the Plan with the funding components described above.
To minimize the Plan's impact to homeowners, the Council decided at that time to find
funding for half of the Public Works shops replacement in the General Fund rather than
include it in the voter - approved bond package. Based on assumptions included in the
financing model, the average annual cost to owners of a $250,000 house would be
about $116 per year over the life of the bond. Because the majority of property in
Tukwila is commercial, homeowners will pay less than 20% of the overall cost of the
bond.
55
INFORMATIONAL MEMO
Page 2
Public Outreach
Public outreach to educate people on the proposal as well as to gather feedback was
conducted in a variety of ways, including a mass mailing, four open houses, local and
social media articles, community group meetings, dedicated page on the City website,
and videos and other information on TukTV. The City Council was presented with an
overview of the results of this effort on July 5, 2016. The outreach phase revealed that
there is community support for adequately funding public safety, but there is a strong
desire to institute an oversight component and provide assurance that funds will be
spent as stated by the City. In addition, there is a great deal of interest in facility siting
and design and the community would like to be involved.
Oversight Committee
On July 6, the Finance and Safety Committee discussed next steps and an approach to
address the community's request for strong oversight. They expressed a desire to
create a committee with membership and scope determined by the City Council. The
attached draft ordinance includes a section drafted in response to this request,
proposing an Oversight Committee of at least five members to be appointed by the
Council. The Oversight Committee will be required to report annually to the City Council
on the allocation of bond proceeds and how the goals of the proposition are being met.
Additional details on the appointment process and /or operations of the Oversight
Committee can be prescribed by separate ordinance or resolution if the Council so
desires.
NEXT STEPS
The City Council has scheduled further discussion on the Public Safety Plan on the July
25, 2016 Committee of the Whole agenda, with possible action to follow on August 1.
The deadline to place a measure on the November 8 General Election is Tuesday,
August 2. Should the Council decide to move forward with this ballot measure, the City
will need to also provide King County with the names of individuals to serve on the
Pro /Con Committees that provide statements in the Voters' Pamphlet. This opportunity
has already been advertised with a due date of 5:00 p.m., July 25, 2016. If the City
receives more than three interested individuals on either side, the City Council will make
the final determination on Pro /Con Committee makeup at its August 1, 2016 meeting.
ATTACHMENTS
• Draft Ordinance
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, PROVIDING FOR THE SUBMISSION
TO THE VOTERS OF THE CITY AT A SPECIAL ELECTION TO
BE HELD IN CONJUNCTION WITH THE STATEWIDE GENERAL
ELECTION ON NOVEMBER 8, 2016, OF A PROPOSITION
AUTHORIZING THE CITY TO ISSUE ITS GENERAL
OBLIGATION BONDS FOR THE PURPOSE OF PAYING A
PORTION OF THE COST OF THE TUKWILA PUBLIC SAFETY
PLAN, IN A PRINCIPAL AMOUNT NOT TO EXCEED $77,385,000,
PAYABLE BY ANNUAL PROPERTY TAX LEVIES TO BE MADE
IN EXCESS OF REGULAR PROPERTY TAX LEVIES, AND TO
LEVY THOSE EXCESS PROPERTY TAXES, ALL AS MORE
PARTICULARLY SET FORTH HEREIN; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Findings and Determinations. The City Council of the City of Tukwila,
Washington (the "City "), makes the following findings and determinations:
A. The City Council of the City has determined that it is in the best interest of the
City to implement its Public Safety Plan, which includes replacing three seismically -
deficient fire stations that have met their useful life, guaranteeing that the Tukwila Fire
Department has the funding for critical items such as fire trucks and other life /safety
equipment as necessary, and constructing a justice center to hold the Tukwila Police
Department and Municipal Court, to ensure the continuity and improvement of City
services (collectively, the "Project "), and the City does not currently have sufficient funds
available for that purpose.
B. The City Council wishes to seek voter approval for the issuance and sale of
general obligation bonds of the City in a principal amount not to exceed $77,385,000 to
pay a portion of the costs of the Project and the costs of issuance of the bonds, to be
paid by an annual excess property tax levy (the "Bonds ").
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C. The constitution and laws of the State of Washington provide that the question
of whether or not the City may issue the Bonds and levy excess property taxes be
submitted to the qualified electors of the City for their ratification or rejection at a special
election.
Section 2. The Project.
A. The City Council finds that it is in the best interest of the City to carry out the
Project. The Project shall include all necessary equipment and appurtenances, but
shall not include the replacement of equipment. The cost of all necessary architectural,
engineering, legal and other consulting services, inspection and testing, administrative
expenses, new construction and site improvements, demolition, on- and off-site utilities,
related improvements and other costs incurred in connection with the Project shall be
deemed a part of the costs of such capital improvements. The City Council may modify
the details of the Project where necessary or advisable in the judgment of the City
Council, with input from the City's bond oversight committee (the "Oversight
Committee").
B. The estimated cost of the Project, including the costs of issuing and selling the
Bonds ordinance, is declared to be at least $77,385,000. The economic life of the
Project is expected to be at least 20 years.
Section 3. Description of Bonds. The Bonds may be issued as a single issue or
as part of a combined issue with other authorized bonds, and in more than one series,
all as deemed advisable by the City Council and as permitted by law. The Bonds shall
be fully registered bonds, bearing interest payable as permitted by law and maturing
within 20 years after the date of issue, or within any shorter period fixed by the City
Council. The Bonds shall be paid by annual property tax levies sufficient in amount to
pay principal and interest when due, which annual property tax levies shall be made in
excess of regular property tax levies without limitation as to rate or amount but only in
amounts sufficient to pay such principal and interest when due. The Bonds shall be
issued and sold in such manner, at such times and in such amounts as shall be
required for the purpose for which the Bonds are to be issued. The exact date, form,
terms, options of prior redemption, price, interest rate or rates and maturities of the
Bonds shall be hereafter fixed by ordinance of the City Council. Pending the issuance
of the Bonds, the City may issue short-term obligations pursuant to Chapter 39.50 RCW
or such other obligations as are permitted by law to pay costs of the Project. Such
obligations and their costs may be paid or refunded with proceeds of the Bonds when
issued.
Section 4. Proceeds of the Bonds. If available money from the proceeds of the
Bonds is more than sufficient to pay the costs of the Project, or if the City Council
determines that state or local circumstances require any alteration in the Project, the
City may acquire, construct, equip and make other capital improvements to the City's
facilities, or retire and/or defease a portion of the Bonds, all as the City Council may
determine and as permitted by law. If the proceeds of the sale of the Bonds and other
available money are insufficient to make all of the capital improvements herein provided
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for, or if it has become impractical to accomplish the Project or any portion of the
Project, the City may use the proceeds of the Bonds and other available money for
paying the costs of that portion of the Project deemed by the City Council to be most
necessary and in the best interest of the City.
Section 5. Financial Oversight Committee.
A. If the ballot proposition submitted by this ordinance is approved by the qualified
voters of Tukwila, an Oversight Committee shall be appointed by the City Council within
six months following approval. The Oversight Committee shall consist of a 'tea
minimum of five members comprising two residents, two members from the business
community, and one individual from a non - profit organization located in the City. The
term of appointment for each member of the Oversight Committee shall be two years.
However, in order to have staggered terms, one resident and one business member of
the Oversight Committee will initially be appointed for three years and thereafter all
terms of appointment will be for two years. The Oversight Committee shall continue in
existence for the economic life of the Project.
B. The Oversight Committee shall review the allocation of bond proceeds and
progress on achieving the purposes of this proposition, and shall report at least semi-
annually to the City Council on the same. The annual report shall be filed in paper and
electronic form with the City Clerk. The Oversight Committee may elect officers and
establish rules of procedure, inGl i +� lat sha tee —a —que um. Oversight
Committee members shall serve without compensation and may be removed by the City
Council following absence without cause from two or more meetings. The City Council
may prescribe by ordinance or resolution such other rules relating to the appointment
process and the operation of the Oversight Committee as shall be necessary or
appropriate.
Section 6. Calling of Election.
A. The City Council requests that the Elections Director of King County,
Washington (the "Director "), call and conduct a special election in the City, in the
manner provided by law, to be held therein in conjunction with the statewide general
election on November 8, 2016, for the purpose of submitting to the voters of the City, for
their approval or rejection, the question of whether or not general obligation bonds of
the City shall be issued in a principal amount not to exceed $77,385,000 (or such lesser
maximum amount as may be legally issued under the laws governing the limitation of
indebtedness), the proceeds of which shall be expended to pay costs of the Project and
costs of issuance of the Bonds, and annual excess property taxes shall be levied to pay
principal of and interest on the Bonds when due. The proceeds of the Bonds shall be
used for capital purposes only, which shall not include the replacement of equipment.
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B. If this proposition is approved by the requisite number of voters, the City will be
authorized to issue and sell the Bonds in the manner described in this ordinance, to
spend the proceeds thereof to pay costs of the Project and costs of issuance of the
Bonds, and to levy excess property taxes to principal of and interest on the Bonds when
due.
Section 7. Ballot Proposition.
A. The City Clerk (or his or her designee) is authorized and directed to certify, no
later than 4:30 p.m. on August 2, 2016, to the Director, a copy of this ordinance and the
proposition to be submitted at that election in the form of ballot title prepared by the City
Attorney pursuant to RCW 29A.36.071, as follows:
CITY OF TUKWILA, WASHINGTON
PUBLIC SAFETY BONDS
The Tukwila City Council passed Ordinance No. concerning
financing its Public Safety Plan. If approved, this proposition would
replace three fire stations, fund life /safety equipment for the Tukwila Fire
Department, construct a police /court justice center and establish an
oversight committee by authorizing issuance of general obligation bonds
not to exceed $77,385,000 (maturing within 20 years), and would
authorize the annual levy of excess property taxes to pay the bonds, all as
provided in Ordinance No. . Should this proposition be approved?
YES .................. ❑
NO................... ❑
B. For purposes of receiving notice of any matters related to the ballot title, as
provided in RCW 29A.36.080, the City Council hereby designates its bond counsel,
Foster Pepper PLLC (Marc Greenough, 206 - 447 -7888, marc.greenough @foster.com),
as the individual to whom such notice shall be provided.
Section 8. General Authorization. The proper City officials are authorized to
perform such duties as are necessary or required by law to the end that the question of
whether or not the Bonds shall be issued, as provided in this ordinance, shall be
submitted to the voters of the City at the November 8, 2016 special election held in
conjunction with the statewide general election.
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Section 9. Intent to Reimburse. The City Council declares that to the extent the
City makes capital expenditures for the Project prior to the date the Bonds or other
short-term obligations are issued to finance the Project, from funds that are not (and are
not reasonably expected to be) reserved, allocated on a long -term basis or otherwise
set aside by the City under its existing and reasonably foreseeable budgetary and
financial circumstances to finance the Project, those capital expenditures are intended
to be reimbursed out of proceeds of the Bonds or other short-term obligations issued in
an amount not to exceed the principal amount of the Bonds provided by this ordinance.
Section 10. Local Voters' Pamphlet Authorized. The preparation and
distribution of a local voters' pamphlet providing information on the foregoing ballot
measure is hereby authorized. The pamphlet shall include an explanatory statement
and arguments advocating approval and disapproval of the ballot measure. The
preparation of the explanatory statement, the appointment of pro /con committees and
the preparation of arguments advocating approval and disapproval of the ballot
measure shall be in accordance with Chapter 29A.32 RCW and the rules and guidelines
of the Director. The arguments advocating approval and disapproval of the ballot shall
be prepared by committees appointed by the City Council. Each committee shall be
composed of not more than three persons, and the committee advocating approval shall
be composed of persons known to favor the ballot title and the committee advocating
disapproval shall be composed of persons known to oppose the ballot title. Pursuant to
the Director's guidelines, the names of the committee members appointed by the City
Council shall be provided to the Director no later than 4:30 p.m. on August 2, 2016, and
the arguments advocating approval and disapproval of the ballot measure shall be
provided to the Director no later than 4:30 p.m. on August 5, 2016. The explanatory
statement shall be prepared by the City Attorney and filed with the Director no later than
4:30 p.m. on August 5, 2016.
Section 11. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section /subsection numbering.
Section 12. Severability. If any provision of this ordinance is declared by any
court of competent jurisdiction to be invalid, then such provision shall be null and void
and shall be severable from the remaining provisions of this ordinance, and shall in no
way affect the validity of the other provisions of this ordinance or of any other ordinance
or resolution or of the Bonds.
Section 13. Effective Date. This ordinance or a summary thereof shall be
published in the official newspaper of the City, and shall take effect and be in full force
five days after passage and publication as provided by law.
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Section 14. Ratification of Prior Acts. Any action taken consistent with the
authority of this ordinance, after its passage but prior to the effective date, is ratified,
approved and confirmed.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of 12016.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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Public Safety Plan
Follow up from Public Hearing
July 25, 2016
How we got here
• Two efforts converged; Public Safety prioritized
• Identifying how to fully fund fire services in Tukwila has been an ongoing
effort since 2010, and included two lengthy processes investigating whether
joining the Kent Regional Fire Authority was the best option.
• At the direction of the City Council in 2012, the City has also engaged in a
comprehensive review of City facilities, which included fire facilities, resulting
in the City of Tukwila Facilities Plan for Essential Government Services.
• Public Safety was the top priority identified and, at the direction of the City
Council, the Public Safety Plan was developed in 2016 to address both fire and
the broader public safety facilities deficiencies identified by the Facilities
Committee.
Details of the Public Safety Plan
• 20 -year voter - approved Public Safety bond to pay for:
• Replacing three seismically- deficient fire stations
• Guaranteed funding for fire equipment and apparatus for the life of the bond
• New Justice Center the house Tukwila's Police Department and Municipal
Court
• Consolidated Public Works shops facility to be paid for with an equal
mix of General Fund and Utility Funds, within the existing rate
structure
Themes heard from the community
• Model of fire service
• Oversight committee
• Impact to tax payers
• Community involvement in siting and design
• Certainty of use of funds
• Funding for Public Works shops
• The future of City Hall and long -term facilities planning
• Potential impacts of facilities
Model of Fire Service
• Average response time in 2015 was 5:59
• Finance and Safety presentation on different service model options
• Tukwila is unique — geography, building types, critical infrastructure
• Time is critical when responding to both fire and EMS
• 67% of the calls are for aid; not unique nationally or regionally
• Slightly higher calls for fires than other counterparts at 7% of total calls
• An engine is the only piece of equipment that can respond to both fire and EMS; all
firefighters are trained EMTs
• Changing to a model that relies more on aid cars than fire engines will increase fire
response times significantly
• Full presentation available on website TukwilaWA.gov /PublicSafetyPlan
see Impacts to Service Levels
Oversight Committee
• Council will determine scope and makeup
• Proposed language reads minimum of five
• Goal of non - profit representative is to enhance voice of all communities
• Terms can be changed; staff concerned that more than a two -year
commitment could be a deterrent for some people
• Proposed language provides a separate process for Council to develop the
purpose of the oversight committee
• Similar process used by other jurisdictions
• Ultimately, per state and municipal law, the Council is the final oversight
Impact to Taxpayers
• A homeowner assessed at $250,000 would pay an average of $116
per year
• Rate is $0.47 per $1,000 of assessed value based on current
assumptions
• Commercial property owners currently pay 80% of the property taxes
in the City of Tukwila, and they will also pay 80% of the costs
associated with the Public Safety Bond
• Low income seniors and disabled who qualify for the existing property
tax exemption program are also exempt from this tax
Community Involvement with Siting & Design
• Council and Administration share desire for robust public engagement
around siting and design of the three fire stations, Justice Center to
house the Tukwila Police Department and Municipal Court, and Public
Works Shops
• Community advisory council to be created
• Community meetings, charrettes and other visioning events planned
• Siting and design will incorporate staff input
Certainty of Use of Funds
• RCW 84.52.056 restricts how voter - approved (UTGO) bonds can be
s
p
ent
• Ordinance is specific about the ballot language and projects
• Bonds can only be spent for what is included in the ballot
• City Council has the ability to defease (void future) bonds early in the
event of an underspend
• City cannot issue additional UTGO bonds in excess of what is stated in
the ballot title without going back to the voters
Funding for Public Works Shops
• Half of the funding comes from Water, Sewer and Surface Water
Funds
• Must be spent on utility - related issues
• Will be achieved within the existing rate structure
• Reserves in the funds and other debt service sun setting allow this to happen
• Debt service payments for the shops represent 5.6% of all funds on an annual
basis
• Half coming from the General Fund through councilmanic (LTGO)
bonds
• Achieved by efficiencies, continuing today's level of service
Future of City Hall & Facilities Reserves
• Facilities steering committee recommended City Hall campus funded
through councilmanic (LTGO) bonds, paid back by the General Fund
• Current proposed timeline for City Hall campus is outside the six -year
planning window
• Not contemplating any other voter - approved facilities measures
• Public Safety Plan provides the City the opportunity to begin a
facilities reserve program to address future needs
Potential Impacts of Facilities
• Both the Justice Center and Public Works Shops are limited by zoning
as to where they can go
• Norm Maleng Regional Justice Center a good example —Kent
welcomed it as a revitalization tool for its downtown
• Feedback from open houses indicates community wants to use the
siting of these facilities to enhance existing neighborhoods
• Siting and design committee effort would review any potential
impacts to a neighborhood
Next Steps
• Public Safety Bond — Council must act by August 1 to make the
November 8 ballot; must also decide pro /con committee makeup
• Public Works — 2017/2018 Budget process
• Bond Oversight Committee scope and representation to be finalized
by the Council this summer