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