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HomeMy WebLinkAbout2017-05-08 Committee of the Whole MinutesTukwila City Council Committee of the Whole Meeting City Hall Council Chambers May 8, 2017 — 7:00 P.m." MINUTES COMMITTEE OF THE WHOLE CALL TO ORDERIPLEDGE OF ALLEGIANCE Council President Robertson called the Tukwila City Council meeting to order at 7:00 p.m. and led the audience in the Pledge ofAllegiance. OFFICIALS Mayor Ekberg was not inattendance. Present were Dennis Robertson, Council President-, Councilmembers Joe Duffie, Verna Seal, Kathy Hougurdy, De'SeanOuinn. Kate Kru||er. Thomas McLeod. CITY OFFICIALS David C|ine, City Administrator; BobGibereon. Public Works Director; Rachel Bianchi. Communications and Government Relations Manager, JayVVitbwer. Fire Chief; Lynn Miranda, Senior P|annor� Laurel Humphney, Council Analyst; DanaA|mberg Didenn, Administrative Support Technician. PUBLIC COMMENTS There were no public comments PUBLIC HEARING An ordinance amending the multi-family residential property tax exemption (K8FTE). Lynn Miranda, Senior Planner, explained the City Council adopted the Soudhoenber Plan in2O14.which included the Transit Oriented Development (TOD) neighborhood. The City has made improvements to the area including the Transit Center and Pedestrian Bridge, as well as changes planned for Baker Boulevard. Ordinance No. 2462 was passed in 2014, which allowed the use of the multi-family residential property tax exemption (MFTE) as an incentive to encourage development of market rate or affordable housing in that area. Implementation of the MIFTE helped catalyze development of the Washington Place project. Ms. Miranda noted the purpose of the MFTE was to stimulate that type of construction and not provide an on-going subsidy, and the ordinance established a deadline of December 31.2O18. Washington Place was the only project to uU|ize the K8FTE Developers have recently expressed interest in constructing Class A market rate apartments in the TOD district. Because there are no existing rents in the area to use as "comps," developers have found it difficult to obtain financing and have expressed interest inmn extension of the K4FTE through 2O17. Staff believes extending the MFTE application period for a limited time is a necessary incentive to stimulate construction of additional housing in the urban center. Mo. Miranda explained that an eligible W1FTE project must meet certain eligibility criteria such as being located in the target area, having greater than 4 dwelling units, contain o certain average size and mix of units, must meet all City building codes and must be completed within 3 years of approval of the MFTE. The structure would be exempt from property taxes for 8 years (or 12 years if providing affordable housing) and the tax exemption only applies to qualified units, not land use or commercial uses. Once the exemption period ends, the structure would be placed back on the property tax rolls. Tukwila City Council Committee of the Whole Minutes May 8, 2017 Page 2 of 5 The only change being requested is extension of the application period to the end of the year 7:05 p.m. Council President Robertson opened the public hearing. There were no public comments. 7:05 p.m. Council President Robertson closed the public hearing. SPECIAL ISSUES a. An ordinance amending the multi - family residential property tax exemption (MFTE). Councilmember Hougardy indicated this item was discussed at the Community Development and Neighborhoods Committee meeting on April 24, 2017. The committee members were unanimous in recommending approval. Councilmember Seal stated the credit may help spur additional housing options in the Urban Center. She also noted the ordinance sets a defined period (ending December 31, 2017) for availability of the MFTE program. Councilmember Quinn asked about the level of interest that has been expressed by developers. Ms. Miranda noted that developers have seen the improvements happening in the Urban Center and see the progress with Washington Place. She noted there are a couple of vacant properties in the area. Once one or two additional projects are completed and rented, financing options may be in place and the numbers may show that development can work without the need for the MFTE. Councilmember McLeod asked if any developers have indicated the height of structures they may be interested in building. He also asked about determining the potential property tax amounts that would be credited. Ms. Miranda stated that "5 over 2" (5 floors of residential over 2 floors of parking) seemed to be a common model with developers to whom she has spoken. She stated that to date there has not been enough detail to determine the assessed value of a potential project. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE CONSENT AGENDA OF THE NEXT REGULAR MEETING. b. A real estate broker contract for the Public Safety Plan. Councilmember McLeod indicated this item was discussed at the Public Safety Committee meeting on May 1, 2017. The committee members were unanimous in recommending approval. Bob Giberson, Public Works Director, explained the budgets for the Public Safety Plan projects include land acquisition and related expenses such as real estate brokers, real estate appraisers, land surveyors and other due diligence expenditures. The City advertised a Request for Qualifications and received proposals from three real estate brokerage firms. After reviewing the proposals, Heartland, LLC /CLS (Contract Land Staff) was selected based on superior experience and qualifications. The consultant contract with Heartland, LLC includes a broker commission of 2.5% for each real estate transaction based on the gross purchase price, plus $60,000 for subconsultant work by CLS for acquisition services with eminent domain. The contract language includes a credit to the City of up to $40,000 against the 2.5% commission. Councilmember McLeod stated that any prior relationships or potential conflicts of interest by Heartland were discussed at the Public Safety Committee meeting. There were no conflicts. He noted that Heartland did work with the City's consultant, Shiels Obletz Johnson, on the seawall project in Seattle. Tukwila City Council Committee of the Whole Minutes May 8 2017 Page 3 of 5 COUNCIL CONSENSUS EXISTED T0 FORWARD THIS ITEM Tg THE CONSENT AGENDA OF THE NEXT REGULAR MEETING. o. Consensus on Program Management Quality Assurance (PMQA) RFQ (Requests for Qum|ifioatimns).to include timeline and selection process. Councilmember McLeod indicated this item was discussed at the Public Safety Committee meeting on May 1.2O17. The committee members were unanimous in recommending approval. Rachel Bianchi, Communications and Government Relations Manager, stated the City Council requested the services of a Program Management Quality Assurance (PMQA) consultant in conjunction with the Public Safety Plan. The position would report directly tothe City Council and provide additional oversight as the City implements the Public Safety Plan. A Request for Qualifications (RFO) has been drafted (page 4Sof the agenda packet) for review by the Council. Should there be consensus on the draft RFQ this evening, Ms. Bianchi suggested the following timeline for moving forward with the selection process: May 1O .................... Issue RFQ May 24 .................... Proposals due Week of May 2O ...... Interviews June 2 ..................... Selection Ms, Bianchi proposed that the RFO responses be reviewed and scored by staff, including herself, Bob 8ibaraun and Laurel Humphr*y, Council Analyst. For the interview shage, she recommended a committee composed of members of the Council's Public Safety Committee (Counoi|manoberaMcLeod, Duffie and Quinn) plus staff members. Ma. Bianchi noted the budget for the Public Safety Plan did not include funding for PK4{JAservicos. Staff recommends moving the City's 2016 Ending Fund balance forward to cover the cost. &1e Bianchi referenced the "Scope of Services" section on page 50 of the agenda packet. The Public Safety Committee asked for the following change to item 4 (the intent is for a minimum of 4 up to 6 at Council's option): 4 Q*H@ert*Fly Reports and presentations of review of budget and schedule status at four to six Council meetings annually. Counoi|nnannber Kru||ernaferunced item 3 in the Scope of Services, which oo||n for "Monthly meeting with theExeuutivePnojeot[Nanagementteamtoosseospnogreaa.advioeandstrotegize^ The intent of the PyWUA position iothat the consultant will have accountability to the Council. She suggested the Councilmembers be aware of the monthly information exchanges with the Executive Project Taomin order to avoid big course corrections later. Ms. Bianchi stated the Executive Project Teammoadngsvvereintendadtoprovide the consultant with the information needed to present Councilmembers with the appropriate level of analysis during their scheduled presentations tV the Council. Discussion resulted in the proposed change to item 2 of the Scope of Services: 2. Monthly review of budget, schedule and progress of all pr ject review. Council of this Council President Robertson clarified the Council is being asked for consensus on the following items related to the Program Management Quality Assurance (PMQA) consultant. 1. The Request for Qualifications (RFQ).asedited 2. The recommended timeline. 3. Make-up of the review and interview committees for processing RFQ responses. 4. Using the 281G Ending Fund balance aao funding source. Tukwila City Council Committee of the Whole Minutes May 8, 2017 COUNCIL CONSENSUS EXISTED ON EACH OFTHE FOUR ITEMS AS OUTLINED ABOVE. d. Applications for the Public Safety Plan Siting Advisory Committee. Page 4 of 5 Cnunci|member McLeod indicated this item was discussed st the Public Safety Committee meeting on May 1, 2017. The committee members were unanimous in recommending approval. As part of the Public Safety Plan, the City created the Siting Advisory Committee to provide assistance from the public in choosing sites for facilities and to help ensure the City's outreach is appropriate and comprehensive. Applications to serve on the committee were solicited from the public throughout the month ofMarch. The application period was extended for two weeks to April 14, 2017, in an effort to solicit a business representative. The initial membership of the committee was planned as3residents and member from the business community. Direct solicitations were made to local businesses and organizations through various means; however, no business representative has stepped forward. [Ws. Bianchi stated the Mayor has selected William Gillespie as his appointment to the Siting Advisory Committee. Due to the aggressive schedule associated with implementing the Public Safety Plan, staff recommends the Council move forward with appointing the Siting Advisory Committee, which could start meeting this month. Ms. Bianchi explained the Cnunoi|noembenswho serve on the Public Safety Committee reviewed the other Q applications received from residents. The recommendation isto appoint the following three individuals to the committee: • Tod800k|ess • Jerry Thornton, Sr. • Kathleen Wilson The Councilmembers expressed appreciation to everyone who applied to serve on the committee. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. REPORTS a. Mayor The Mayor was not present. b. City Council Councilmember Duffie reported that on May 5, 2017, he visited with members of the City of Lynnwood City Council. Councilmember Seal referenced information in the May 2, 2017 Finance Committee packet related to the City's 4th quarter investment report. She stated this Sabvday. May 13. 2017. is the Backyard Wildlife Festival, as well as dedication events at Duwamish Gardens (9:00 a.m.) and the Duwamish Hill Preserve Phase U(1O:O0o.m.). Ms. Seal will bo hosting the Council Chat at the Community Center from 11:08 a.no.hn1:0Op.no. She stated the "Friends of the Library" will be holding a kick-off event on June 8, 2017 at 7:00 p.m. at the new library. Councilmember Hougardy attended the Sound Cities Association dinner on May 3, 2017, and a meeting of the Equity and Social Justice Commission, where they continue to work on a strategic plan for equity and social justice in the City of Tukwila. Coumci|memberC)uhln reported that on May 2, 2017. he participated on a panel discussion on "Suburbanization of Poverty" as part of the Congress for New Urbanism conference. He stated that discussion led to an invitation for a live interview on KING 5, as well as on the John Carlson radio show onKV|on May G.2O17. He explained that people are starting to look at poverty differently and recognize Tukwila City Council Committee of the Whole Minutes May 8, 2017 Page 5 of 5 that poverty is now in the majority of suburban areas. Mr. Quinn provided information on a Career Bridge Youth Summit experience available to people between 18 and 24 years of age. The program provides 6 college credits through Seattle Central College, a job search portfolio, personal career plan and resume assistance, interview skills, certification opportunities (forklift, OSHA, HazMat, first aid, flaggers), plus transportation assistance and a stipend. The program runs May 15 through June 9, 2017. Councilmember Kruller attended the Sound Cities Association dinner on May 3, 2017. She attended the Congress for New Urbanism awards night on May 4, 2017, which included presentation of Tukwila's final report. Councilmember McLeod attended the Public Sector Economic Development Summit for Elected Officials on May 8, 2017. City leaders and executives from King, Pierce and Snohomish counties were in attendance, with discussion on marketing and branding of the region as a whole and ways to work together to promote the region. He noted that King County Executive Dow Constantine stated that Seattle is "the fifth widest city in the country," and that they are right next to the most diverse city in the country, Tukwila. Upon further discussion with Executive Constantine about that statement, Mr. McLeod was directed to an article from "The Seattle Times," and information on census data that shows the white population is growing in the Seattle area as many people are being pushed out and going to other areas. c. Staff There was no report. d. Council Analyst There was no report. ADJOURNMENT 7:57 p.m. COUNCIL PRESIDENT ROBERTSON DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED. k Dennis Robertson, ouncil President Barbara Saxton, A ing Deputy City Clerk APPROVED BY THE COUNCIL PRESIDENT: 5122/17 AVAILABLE ON THE CITY WEBSITE: 5123/17