HomeMy WebLinkAbout2017-06-12 Committee of the Whole MinutesTukwila City Council Committee of the Whole Meeting
City Hall Council Chambers June 12, 2017 — 7:00 P.m."
COMMITTEE OF THE WHOLE
CALL TO ORDER/PLEDGE 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
Present were Dennis Robertson, Council President; Councilmembers Joe Duffie, Verna Seal,
KathyHougardy. Oo'SeanDuinn. Kate KruUar. Thomas McLeod.
CITY OFFICIALS
Allan Ekberg. Mayor; David C|ine, City Administnabor� Bob 8iberson, Public Works Director; Rachel
Bianchi, Communications and Government Relations Manager; Jay Wittwer, Fire Chief; Vicky Carlsen,
Deputy Finance Director; Joseph Todd, Technology & Innovation Services Director-, Laurel Humphrey,
Council Analyst; Barbara Saxton, Acting Deputy City Clerk.
PUBLIC COMMENTS
There were no public comments.
PUBLIC HEARING
A resolution adopting the Six-Year Transportation Improvement Program for 2018-2023.
Bob Gibereon, Public Works Dineutor, stated the Transportation Improvement Program (TIP) is primarily a
financial planning document to be incorporated into the State and regional T|Pn The TIP generally lists
transportation-related projects planned within the next six years that are deemed regionally significant or
for which grant funding is awarded or expected. Projects are removed from the TIP when funding within
the six-year window ie not feasible or construction has been completed.
Councilmember Kruller stated the Transportation and Infrastructure Committee had requested that the
City's Walk & Roll Program be retained in the current TIP as a placeholder even though it is unfunded
during the 2018-2O23 time frame.
7:03 p.m. Council President Robertson opened the public hearing and called for public
comments.
There were no public comments.
7:03 p.m. Council President Robertson closed the public hearing.
SPECIAL ISSUES
a. A resolution adopting the Six-Year Transportation Improvement Program for 2018-2O23.
Councilmember Kruller indicated this item was discussed at the Transportation and Infrastructure
Committee meeting on May 23.2O17. The committee members were unanimous inrecommending
approval with anamendment.
Mr. Giberson requested the resolution be forwarded to the Consent Agenda at the next Regular Meeting
Tukwila City Council Committee ofthe Whole Minutes
June 12.2U17 Page 2ofy
Councilmember Seal stated her support for continued inclusion of the Walk & Roll Program in the City's
Transportation Improvement Pmgram.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE CONSENT AGENDA AT THE
NEXT REGULAR MEETING.
b. A bond ordinance for residential street projects.
Councilmember Seal indicated this item was discussed at the Finance Committee meeting on June 6,
2017. The committee members were unanimous in recommending approval.
VickyCar|son. Deputy Finance Direcfor, explained the ordinance would authorize the issue ofLimited Tax
General Obligation (LTGO) bonds expected to yield $8,400,000 for two residential street projects.
Approximately $6.400.UU0 would be for 42nd Avenue South and $2.0OO.0UU for 53rd Avenue South. The
projects were budgeted for and included in the City's 6-year financial plan. yWs.Car|sen stated Duncan
Brown from PFM Group and Deanna Gregory from Pacifica Law Group were in the audience and
available to answer questions.
Counci|memberC>uinn asked if rates were sd|| stob|e, as they were with the City's last bond sale.
Duncan Brovvn, PFM Gnoup, stated generally yes, interest rates are expected to remain relatively stable
between now and the proposed July 13.2U17 sale date. The Federal Open Market Committee ia
scheduled to meet next week and is expected to increase the Federal Fund Rate; hovvevor, that is not
expected tn have a material impact on the bond sale next month.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TOTHE NEXT REGULAR MEETING.
c. Consensus mn draft fire station programming and budget implications.
Councilmember McLeod indicated this item was discussed at the Public Safety Committee meeting on
June 5.2U17. The committee members made no recommendation on a specific pathway and requested
further information from staff prior tn discussion by the full Council.
Rachel Bianchi, Communications and Government Relations Manager, stated Council is being asked for
consensus on a program option in order to move on to the next phase of the fire station design effort and
remain onschedule. She noted there are many decisions tobe made moving forward. The preliminary
planning stage was based on the following criteria from the Public Safety Plan'.
, One headquarters station with 3bays
" Two other stations with 2 bays each
" Sufficient space to grow b> the year 2040
• Space for Fire Administration
Justine Kim with Shie|n Ob|etz Johnsen, the City's Project Manager for the Public Safety P|an� Bob
Giberoon, Public Works Oinactor� and Fire Chief Jay VVittwerwore also available to provide information
and answer questions.
Ms. Kim clarified that programming is the first of several phases. During the programming phase, the
architect and engineer determine the building blocks of the project (types of spaces, number of spaces
and dimensional aspects). Specific assumptions of the preliminary planning efforts are teoted, particularly
as they relate to budget implications. A long vision for the future provides a master plan of where the
design will end up, which helps inform how the design should start.
The next phase isthe schematic design phase, followed by the design development phase and
construction documents. Each of these phases will require the City Council to provide further direction on
the final budget and building. The projects would go out to bid at approximately 9096 completion of the
construction documents phase. This point is flexible and would be timed toOoto bid at the most
beneficial time based on market conditions.
Tukwila City Council Committee of the Whole Minutes
June 12.2O17
Page 3 of 9
Ms. Kim referenced pages 99-1O3of the agenda packet, which depict the project elements aethey are
being considered with a long-range outlook—for the years 2040, 2060 and 2080. The 2O4UProgram
provides for the square footage outlined in the Public Safety Plan, and means the facility is planned to be
functional through the year 204O. Similarly, the 2UOU and 208U Programs mean the facility's needs have
been projected out to serve the community through 2060 and 2080 respectively.
Weinstein A+U. the City's architectural firm for the fire station projects, was hired after passage ofthe
bond measure. They have worked with City staff in the programming phase to ensure the actual design
will be close to the initial concept. As part of that work, the following changes were identified:
1) ATraining Room of 900 square feet was added to the original 2040 Program, as this was okey
item that the firefighters' planning group felt was a critical need. This could also function asa
back-up Emergency Operations Center (EOC)in the future, ifnecessary.
2) With the addition of the training room, overall square footage of the stations stayed similar (anet
increase uf1.O58 square feeU.
3) The headquarters station is planned to be at the new Station 52, since it will be more centrally
located than Station 51.
4) The average size of the smaller stations increased to better meet the needs of a fully functioning
station, and the headquarters station slightly decreased.
5) Stations 52 and 54 are now planned to be built at the same time, opening in 2020. In previous
plans, Station 54 had been planned ho open an late ae2O24.
Ms. Kim reviewed changes insquare footage and details of the initial budget estimate and the revised
budget estimate:
Funding Sources included in Public Safety Plan
40 1
Initial budget estimate
Revised budget estimate
Based on the updated estimates, there is expected tobe a $8.474.00U funding gap associated with the
Public Safety Plan for the fine station projects and what it would take to build the three stations as outlined
in the Plan. This gap is due to the following:
Tukwila City Council Committee of the Whole Minutes
June 12, 2017
Page 4 of 9
• Unprecedented cost escalation and market conditions. Typically a cost escalation factor of 3 to 4%
per annum is built into construction estimates. Recently escalation has been running at 4.5% or
higher per year. A separate issue is market conditions, which speak to the regional saturation of
construction activities. When these factors are combined, a 15% to 35% (or higher) increase can
be expected at the time of bidding for these projects.
• Fire station construction costs in the region have increased from $375 to $575 per square foot in
the last three years.
• Bids, in general, throughout the region are coming in significantly higher than the estimates.
Ms. Kim noted that she has recently seen school district projects come in at 15% to 20% over estimates
after only 2 months.
Mr. Giberson stated the City conducted a call for bids for the Major Maintenance on 3 Bridges Project in
March, for which there was only a single bidder and that came in at $3.9 million over budget with no
contingencies. When the contractor discovered they were the only bidder, the price went up. The project
was rebid in May with incentives on road closures and traffic control and received 3 bids, 2 of which were
under budget with contingencies. He also referenced bids for the 2017 Overlay Program. Tukwila and
other jurisdictions are seeing a 20% increase in the price of asphalt and construction throughout the
region.
Councilmember Quinn asked about the growth projection factor used in planning for the 2040, 2060 and
2080 Programs.
Chief Wittwer explained the breakdown took place as the group went through the programming phase.
An ideal situation (a 60 -year buildout) was planned out and the group worked backwards from there.
Predicting growth and community needs in the south end of the City's jurisdiction was a major component
of their planning for the 2040, 2060 and 2080 Programs.
Councilmember Kruller asked about the expectation for funding the 2040 Program and how that will
impact planning for the 2060 and 2080 Program elements.
Ms. Kim stated the 2040 Program elements are closest in alignment with the intent of the Public Safety
bond measure. Planning is being done with the feasibility for future design being considered to be
mindful of the City's needs for 2060 and 2080.
Chief Wittwer referenced a fire station in North Las Vegas where future growth was planned for during a
rebuilding project. They were able to design the building for future expansion, and additional space was
added 18 years later.
Ms. Bianchi referenced the Project Schedule on page 97 of the agenda packet. The blue bars represent
the entire design phase for each project, as well as the multiple check -in opportunities with the City
Council. Council President Robertson asked about the point when the contractor is committed to a cost.
Ms. Kim stated that would be at a point toward the end of the blue bars —at 90% completion of the
construction documents phase. The cost projections shown for the fire stations have been escalated to
the current project schedule.
Mr. Giberson explained four options are being presented for Council consideration to facilitate moving
forward into the schematic design phase:
Option A:
Programming: Fulfill the 2040 Program to include program and estimated costs for the three
additional items identified (storage facility, training tower, additional bays).
Funding: Address the funding gap through revision of fire impact fees and careful cash flow
management.
Tukwila City Council Committee nfthe Whole Minutes
June 12.2O17 Page 5of0
OpbonIB: Staff is now recommending OptionB(overtheeedierreomnmendatio for Option A).
Programming: Fulfill the 2040 Program to include program and estimated costs for the three
additional items identified (storage facility, training tower, additional bays).
Funding: Review options nn funding at future date.
Option C: Consensus on programming only for Fire Station 51 and the three additional items
identified (storage taoi|ity, training hower, additional baya), and review the full program and funding at
o future date.
Option D: Review options for programming and funding at a future date, acknowledging that
additional costs may result.
Staff feels Option Bis the prudent course forward at this time. This would allow the City hn continue ho
refine the numbers as more data is compiled in order to make decisions on funding options. Option
would have the most impact on costs due hodelays. Option C would delay the schedule, ao well aosome
impact oncosts.
Ms. Kim introduced Ed Weinstein, Principal of Weinstein A+U. Architects + Urban 0esigners, the firm
providing architectural and engineering design services for the three fire stations.
Mr. Weinstein explained their firm dealt with similar situations of egregious escalation in 2006, 2007 and
2008. They were selected by the City of Seattle to design the Fire Station 10 replacement project, with
an allocated budget of$25 million under the city's fire levy program. Before Weinstein A+U could sign
their contract with the City, a brief overview with a cost estimator showed the project was underfunded by
at least $10 million. Seattle was faced with the decision of how to provide a facility the city could afford
but also that would meet the needs of the community, either by scaling down the programming to fit the
$25 million budget orby finding ways to fund the station asdesigned. After due deliberation, the Mayor
decided it was appropriate to fund the station correctly and allocated $35 million. This was in2O8G. As
they were designing into 2007, costs escalated to 7 or 8%--rather than the planned 3 to 3-1/2%--and then
continued togrow. The arch itect/eng ineers found they could not redesign fast enough to stay ahead of
escalation. The City decided they would actually save money by building the facility as designed, as
value engineering would delay the project and they would lose productive use of those funds.
During that same time period, a renovation of the William K. Nakamura Federal Courthouse in Seattle
was planned. The project was funded by Congress with a budget thought to be appropriate at the time.
When it turned out to have been dramatically underfunded, the GSA (General Services Administration)
had to adjust the program downward. Again, the design firm could not value engineer fast enough tostay
ahead The project was funded at the level needed.
Mr. Weinstein stated situations similar to the above are starting to happen now. Heia currently involved
with an affordable housing project in Pioneer Square which has experienced a 30% rate escalation in the
last four months.
Identifying sites for Fire Stations 52 and 54 will allow the team to calibrate generic estimates on a square
footage basis. Costs may increase if there are limited site options. He referenced acomparable fire
station project on Capitol Hill in Seattle. After review of alternative |ncadons, it was determined the city
would need to tear down the existing facility and build on the same spot. This created logistical
challenges and design limitations due tn the site constraints. Mr. Weinstein stated much more
information will be available to the City in December if the team is able to continue with schematic design
now, and he feels it would be a shame to lose the current momentum by shelving a decision.
The Councilmembers asked clarifying questions and received additional information including
^
Option AorB would mean moving forward on all three stations. Although the amount ofdesign
work would be limited for Stations 52 and 54 without having confirmed sites, design can proceed
and planning can bein place for the three additional items. More information will result inabetter
cost estimation in December/January, which will facilitate decision-making.
Tukwila City Council Committee of the Whole Minutes
June 12.2017 Page 6ofA
• The project schedule (page 97 of the agenda packet) would still apply under Option A or B. The
schedule would become invalid under Option {}orD. Through the expertise of the City's
consultants, staff has been made aware of cost savings available by moving these projects through
together as a suite of buildings, which enables savings on design costs and construction costs.
• Fire Station 51 will move into schematic design this year. Schematic design for Stations 52 and 54
will proceed after site selection. The project uchedu|einc|udessome^buffardme^(bui|tinhothe
purple bars) for site acquisition.
• The $8.400.00O funding gap does not include the three additional items. The team could continue
with the design process for those elements in order to be flexible in the event market conditions
improve later.
, A core value in the Public Safety Plan process has been to deliver to the voters what the City said it
would deliver (the 2040 Program), without going back and asking for additional funds.
Chief Wittwer reviewed the three additional items identified during the programming phase (not included
in the voter approved public safety bond):
1) Storage Facility – The Fire Department currently houses much of its specialized equipment
outside or within operating bays at the stations. A stand-alone storage facility on the Station 51
site may beo more cost-effective approach than using bays for storage.
2) Training Tower –Tukwila firefighters currently need to go outside the City limits—and out of
service—for some required training opportunities. This costs the department time and money for
travel and reduces the availability of staff within the City.
3) Additional Apparatus Bays at Stations 51 and 54 – Designing all new Tukwila stations with
three apparatus baya, instead of the two that are currently p|anned, will better accommodate
future population growth and allow for flexibility within the department.
Ms. Kim provided information on the King Street Station project, which has been in the design phase for
2O years because nfa similar situation. VVSOOT has designed and shelved the project 4or5 times due
hoa run-away market. She suggested the City will have more certainty and a clearer picture of a plan
custom fitted too site if the design proceeds. This does not commit the City to construction costs.
8n1p.rn.Counci|mnennber Quinn exited the Council Chambers.
8:13 p.m. Councilmember Quinn returned to the Council Chambers.
Additional questions and answers included the following:
"
The 2080 Program would include the Fire Marshal's Office (FMO) at Station 52, a back-up EOC/training
room at Station 52 (the primary EOC is to be located in the Justice Center), and community rooms at
each of the three stations.
Ms. Bianchi provided information on funding options for the additional $8.4 million needed to complete the
fire stations program. Fire impact fees are fees assessed with new development—growth that pays for
growth. Funding for fire equipment and apparatus that is part of the Public Safety Plan can be addressed
through careful cash flow management. The funds allocated for fire equipment and apparatus are
required over 20'year period, moaning the City can front-load additional funds needed for the fire
stations from this fund. Impact fees and rate increases would be dedicated to pay that fund back and it is
reasonable to assume those funds will be more than adequate to make the apparatus and equipment
fund whole over the next 15years.
Tukwila City Council Committee of the Whole Minutes
June 12.2O17 Page 7ofD
Mn. Bianchi explained this cash flow management can also be achieved by using specific revenue
opportunities not currently budgeted, which include:
• Land sales and/or long-term leases of the old Fire Station 53, and existing 51, 52 and 54 properties.
• Additional REET funding dedicated to reimbursing the equipment and apparatus fund above what is
budgeted. The City has seen significant increases in REET funds, which have come in between
2596 and GO096 above budget since 2O10.
• Dedication of revenues above budget to backfill the apparatus and equipment fund. This would
include fund balances of general fund dollars not spent ina calendar year.
Additional questions and answers included the following:
Q.- Will additional costs be incurred in the programming phase for the three additional items?
A: The cost would come if those elements are moved into the schematic design phase.
Q:25p.mn.CounoiirnemnberHougerdy exited the Council Chambers.
8:27p.mn.Counci|mnemnberHougmndy returned tm the Council Chambers.
Q: Can the same type of cost increases be expected for the Justice Center project and for the City
Shops?
A: There will likely be cost escalations. |tia too early to determine a specific number. Ad this same point
in programming for the Justice Cenher, we would have this discussion again.
Q : Do the estimates for the cost of land seem underpriced? The Justice Center and City Shops will
likely bo located /no commercial area.
/\: These are valid points; at this time the value ofland and potential alternative sites are unknown.
O: Should a decision be made before a Program Management Quality Assurance (PMQA) firm is
installed and available to provide anopinion?
A: It would likely be the end of July before a contract would be approved. Considering the relative costs
over the next 6 weeks, Administration feels it is worth proceeding on a parallel process.
Q: Are decisions made now reversible?
A: Absolutely.
Councilmember McLeod noted the bond measure vote took place 9 months ago, and costs have been
rising and are impacting project estimates. The decision now ia whether to continue forward with design
to a point when more accurate cost estimates would be available. Both the PW1C>Afirm and Public Safety
Bond Financial Oversight Committee will be in place soon and available to weigh in on these issues.
Cound|membar Dufhe stated he is in favor ofmoving forward.
Council President Robertson feels it is possible the total excess costs for the fire station projects could
exceed$84mi||ion.anditmaynotbopooeib|etomaheadefinitivestatomentthotnotaxofcidzensor
reduction in the proposed services would occur. A lot of policy decisions still need tobe made, He
discussed rough calculations that indicate it is reasonable to think there will be higher costs for the other
projects within the Public Safety Plan. He recommends moving forward with Option B. and proposed that
means to move forward beyond schematic design for Fire Station 51 to the full Option 8 as presented.
He stated he is pleased the Council approved bringing a Program Management Quality Assurance
(PK8C>A) firm to the project, andnoiodtheKAayorheaoignatureauthoritytosignaoont/octtooxpoditetha
typical contract process. He would like the first task to be looking at the budget and schedule for all four
elements. He feels the Council needs to know the money is feasible before total project decisions are
made. He explained the bonds were let for a significant amount of money, and the City has three years
to commit those funds. He also suggested the Finance Committee look at all possible ways to fund the
increased costs beyond those presented todate. Ho feels better cost estimates and potential funding
possibilities could be available bythe end nfsummer.
Tukwila City Council Committee of the Whole Minutes
June 12.2017 Page 8o/0
Councilmember Seal stated Option B would provide the Council with more information as the process
moves forward. She agreed part of that will be to explore additional funding options, and would like the
City hu move forward nna path to deliver what was promised.
Counni|nnemberHougerdy stated she inin support of Option B A lot of items proposed byCouncil
President Robertson would fit with the work in Option B and allow the City to continue with the design
process. This will allow for firmer information relating to the funding gap. involvement bythe PyWC)Afirm.
and to consider all projects within the Public Safety Plan. There are financial avenues specific to-the fire
station projects, such as fire impact fees. Further discussion is needed on the 2O4O.200O and 2O80
programming models and the three additional items.
Councilmember Quinn stated he participated on the interview panel for a PMQA firm. All of the
candidates mentioned the current price escalations and market conditions and stated they have not seen
conditions like this ina long time. Ha feels Option Bisa fiscally responsible decision that looks atmarket
conditions, but does not cost more money while more information is collected. |t would take into account
what io known now and provide a strategy to deal with cost containment. /fwe accelerate some actions,
we will not have the costs associated tobeinformed. Option B gives the City an opportunity toreassess
the project suupeonoemoreinformationioevai|ab|e He noted the line of questioning and process during
the Public Safety Committee meeting discussion was very valuable. He is looking forward to
collaborative relationship with a PNYOAfirm.
Counoi|member Kru||erntated she is in favor of Option B to keep the project moving forward in an efficient
vvay. She would like to see a contract for PMQA services finalized as soon as possible.
Councilmember McLeod stated the City's recent study relating to the question of whether to join a
Regional Fire Authority determined the City wanted the best fire department possible. While the bond
amount determines certain paramotera, he is in favor of getting all options on the table until it is decided
they need to be taken off. He feels the process in place is working and will help identify elements that
can be implemented. He stated he is in favor ofOption B
COUNCIL CONSENSUS EXISTED TO PROCEED WITH OPTION B. AND TO EXPEDITE A
CONTRACT WITH THE SELECTED PK8C2A FIRM TOTHE EXTENT POSSIBLE.
REPORTS
a. Mayor
Mayor Ekberg reported on the retirement celebration for Evie Boykan on June 7, 2017. He also noted
that four Foster High School students were recognized with scholarships at Alaska Airlines' recent
graduation recognition ceremony.
b. City Council
Councilmember Duffie attended the Mayors' Luncheon event on June 10, 2017.
Cnunoi|memberSaa|porticipahadinaNadona|LaagueofCideovvebinaron^QvioEngegementend
Health: How Partnerships Enhance and Contribute to Building a Culture ofHea|th.^ She will distribute
information to staff.
Councilmember Hougardy hosted the Council Chat at Confetti Confections on June 10, 2017. Although
the group of attendees was small, she feels the Chat is an important opportunity for accessibility of the
Council to the public.
Councilmember Quinn attended Evie Boykan's retirement celebration and expressed appreciation for her
public service. He noted she is still as passionate about human services issues as when he first met her
many years ago.
Tukwila City Council Committee of the Whole Minutes
June 12, 2017
Page 9 of 9
Councilmember Kruller noted there will be a public hearing on design review and a conditional use permit
for the Tukwila School District's Early Learning Center on June 22 at 6:30 p.m. in the Council Chambers.
She also noted the value of watching out for other residents in your neighborhoods, including senior
citizens, who may need assistance at times.
Councilmember McLeod offered thanks to the Council, Council President Robertson, City staff and
firefighters for work related to the Public Safety Plan process. He noted big issues are being discussed,
and the process is not being rubberstamped. The Council is sharing voices of the community, and City
Administration is sharing information with Council. He feels it has been a great process.
c. Staff
There was no report.
d. Council Analyst
There was no report.
ADJOURNMENT
9:05 p.m. COUNCIL PRESIDENT ROBERTSON DECLARED THE COMMITTEE OF THE WHOLE
MEETING ADJOURNED.
e nis Robertson, Council President
/'l
Barbara Saxton, Acti g Deputy City Clerk
APPROVED BY THE COUNCIL PRESIDENT: 06/21/17
AVAILABLE ON THE CITY WEBSITE: 06/22/17