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HomeMy WebLinkAboutCOW 2017-11-27 COMPLETE AGENDA PACKET"'q Tukwila City Council Agenda ❖ COMMITTEE OF THE WHOLE •❖ kJ�� !A 0 y `'l Allan Ekberg, Mayor Counci/members: •:• Joe Duffie ❖ Verna Seal David Cline, City Administrator •:• Kathy Hougardy •:• De'Sean Quinn Dennis Robertson, Council President •:• Kate Kruller •: Thomas McLeod 1908 — Monday, November 27, 2017; 7:00 PM Tukwila City Hall Council Chambers 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE 2. PUBLIC COMMENTS At this time, you are invited to comment on items not included on this agenda (please limit your comments to five minutes per person). To comment on an item fisted on this agenda, please save your comments until the issue is presented for discussion. (Refer to back of agenda page for additional information.) 3. PUBLIC HEARINGS Commercial parking tax legislation: (1) An ordinance regarding commercial parking tax regulations. (2) A resolution adopting a fee schedule. Pg.1 Pg.11 Pg.17 4. SPECIAL ISSUES a. Commercial parking tax legislation: (1) An ordinance regarding commercial parking tax regulations. (2) A resolution adopting a fee schedule. b. An ordinance regarding financing for the Public Safety Plan Public Works shops facility. c. An ordinance amending the Tukwila Municipal Code relating to the use of REET funds (Real Estate Excise Tax funds). d. A resolution adopting a City equity policy. e. An ordinance relating to vehicle trespass. f. Collective bargaining agreements for Teamsters. g. A resolution regarding the non -represented employees' salary compensation for 2018. h. A contract change order (No. 9) to contract #14-067 (Final Settlement) with Walsh Construction for the Interurban Avenue South Project in the amount of $1,081,259.15. Pg.1 Pg.11 Pg.17 Pg.21 Pg.65 Pg.73 Pg.85 Pg.95 Pg.99 Pg.119 5. REPORTS a. Mayor b. City Council c. Staff d. Council Analyst 6. MISCELLANEOUS 7. ADJOURNMENT City Tukwila Tukwila City Hall is ADA accessible. Reasonable accommodations are available at public hearings with advance notice to the Clerk's Office (206-433-1800 or TukwilaCityClerk@TukwilaWA.gov). This agenda is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities. Council meetings are audio/video taped (available at www.tukwilawa.gov) HOW TO TESTIFY When recognized by the Presiding Officer to address the Council, please go to the podium and state your name and address clearly for the record. Please observe the basic rules of courtesy when speaking and limit your comments to 5 minutes. The Council appreciates hearing from citizens and members of the public, and may not be able to answer questions or respond during the meeting. PUBLIC COMMENTS Members of the public are given the opportunity to address the Council on items that are NOT included on the agenda during PUBLIC COMMENTS. Please limit your comments to 5 minutes. If you have a comment on an Agenda item, please wait until that item comes up for discussion to speak on that topic. SPECIAL MEETINGS/EXECUTIVE SESSIONS Special Meetings may be called at any time with proper public notice. Procedures followed are the same as those used in Regular Council meetings. Executive Sessions may be called to inform the Council of pending legal action, financial, or personnel matters as prescribed by law. Executive Sessions are not open to the public. PUBLIC HEARINGS Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land -use laws, annexations, rezone requests, public safety issues, etc. Section 2.04.150 of the Tukwila Municipal Code states the following guidelines for Public Hearings: 1. The proponent shall speak first and is allowed 15 minutes for a presentation. 2. The opponent is then allowed 15 minutes to make a presentation. 3. Each side is then allowed 5 minutes for rebuttal. 4. Members of the public who wish to address the Council may speak for 5 minutes each. No one may speak a second time until everyone wishing to speak has spoken. 5. After each speaker has spoken, the Council may question the speaker. Each speaker can respond to the question, but may not engage in further debate at that time. 6. After the Public Hearing is closed and during the Council meeting, the Council may choose to discuss the issue among themselves, or defer the discussion to a future Council meeting, without further public testimony. Council action may only be taken during Regular or Special Meetings. COUNCIL MEETING SCHEDULE No Council meetings are scheduled on the 5th Monday of the month unless prior public notification is given. Regular Meetings - The Mayor, elected by the people to a four-year term, presides at all Regular Council Meetings held on the 1st and 3rd Mondays of each month at 7:00 p.m. and Special Meetings. Official Council action in the form of formal motions, adopting of resolutions and passing of ordinances can only be taken at Regular or Special Council meetings. Committee of the Whole Meetings - Councilmembers are elected for a four-year term. The Council President is elected by the Councilmembers to preside at all Committee of the Whole meetings for a one-year term. Committee of the Whole meetings are held the 2nd and 4th Mondays at 7:00 p.m. Issues discussed there are forwarded to Regular or Special Council meetings for official action. COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Ma r e- review Council review 11/27/17 SW 4/.14? bl_.� 12/04/17 SW 11/27/17 ❑ Motion Mtg Date I1 Resolution /1 Ordinance ❑ Bid Award Mtg Date II Public Hearing ❑ Other Mtg Date Mtg Date Mtg Date 12/4/17 Nitg Date 12/4/17 ITEM INFORMATION ITEM No. 3 &4.A. 1 STAFF SPONSOR: SHERRY WRIGHT ORIGINAL, AGENDA DATE: 11/27/17 AGENDA ITEM TPITE Amend TMC Chapter 3.48 - Commercial Parking Tax CATEGORY /1 Discussion 11/27/17 ❑ Motion Mtg Date I1 Resolution /1 Ordinance ❑ Bid Award Mtg Date II Public Hearing ❑ Other Mtg Date Mtg Date Mtg Date 12/4/17 Nitg Date 12/4/17 Mtg Date 11/27/17 SPONSOR ❑Council Mayor HR ❑DCD Fire TS P&R ❑Police ❑PIF ❑Court I Finance SPONSOR'S The Council is being asked to approve the ordinance amending TMC Chapter 3.48 related to SUMMARY commercial parking tax. In addition, an appeal fee is presented via resolution. REVIEWL:D BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Trans &Infrastructure ❑ Arts Comm. DATE: 11/21/17 ►1 Finance Comm. ❑ Public Safety Comm. Comm. ❑ Planning Comm. CHAIR: SEAL ❑ Parks COMMITTEE RECOMMENDATIONS: SPONSOR/ADmIN. Comm Finance Committee -111T: Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/17 MTG. DATE ATTACHMENTS 11/27/17 Informational Memorandum dated 11/21/17 Attachment A - Comparison of Cities Levying Parking Tax Attachment B - Financial Implications of Amending TMC 3.48 Attachment C - Comparison of City of Tukwila Taxes + Late Fees Ordinance increasing tax rate & adding late fee + Resolution adding appeal fee Minutes from Finance Committee Meeting of 11/21/17 12/4/17 1 2 JAW Ilq h,4 sy City of Tukwila a9oa INFORMATIONAL MEMORANDUM TO: Mayor Ekberg Finance Committee Allan Ekberg, Mayor FROM: Peggy McCarthy, Finance Director BY: Sherry Wright, Senior Fiscal Coordinator DATE: November 21, 2017 SUBJECT: Revisions to Tukwila Municipal Code 3.48 - Commercial Parking Tax ISSUE Recommendation for Council to modify TMC 3.48 to (1) increase the commercial parking tax rate, and (2) add a penalty for late payment. BACKGROUND In 1998, the Tukwila City Council adopted Ordinance 1852 which provided for a 5 percent tax to be levied on gross revenues generated by commercial parking lots in the city. According to Municipal Research & Services Center (MRSC), Tukwila is one of only six entities in Washington that currently levies a tax on commercial parking. The common feature of cities that levy this tax is proximity to a major transportation system, such as an airport or ferry terminal. TMC requires that parking taxes be remitted on or before the last day of the month following the month during which the taxes were collected. However, the municipal code does not outline a penalty for late payments, which provides no incentive for payments to be made on time. ANALYSIS The 5% commercial parking tax has been in effect since 1998 without a rate increase. Staff recommends increasing the levy from 5% to 15%. This increase will keep the rate comparable to tax rates in surrounding jurisdictions (see Attachment A). In addition, over 50% of the parking taxes in Tukwila were paid late. Implementing a 10% late fee would encourage businesses to submit taxes on time and provide the City with a more predictable cash flow, and bring the parking tax penalty in line with the penalties assessed for other city taxes (See Attachment C). FINANCIAL IMPACT Attachment B highlights the impacts to revenue if the City were to increase the tax rate from 5% to 15%. Currently, the 5% rate results in just under $215,000 in revenue per year. A rate increase to 15% would result in approximately $643,000, or $428,000 in additional revenue, assuming all other factors remain the same. The late fee is intended to encourage timely payment of taxes, and for purposes of discussion, it is assumed that adding a late payment penalty will not result in additional revenues. In accordance with State law, parking tax revenues are currently deposited into Fund 104, Arterial Street Fund, and are restricted for transportation purposes. Any additional revenue received based on a change in city code would continue to be restricted for the same purpose and would be designated for transportation projects that currently have unidentified funding. 3 INFORMATIONAL MEMO Page 2 RECOMMENDATION Council is being asked to approve the parking tax ordinance and fee resolution, and consider this item at the November 27 Committee of the Whole meeting and subsequent December 4 Regular Meeting. ATTACHMENTS A. Comparison of Cities Levying Commercial Parking Tax B. Financial Implications of Amending TMC 3.48 C. Comparison of Tukwila Taxes and Late Fees D. Draft ordinance repealing Ordinance 1852 and reenacting TMC Chapter 3.48 E. Resolution adding appeal fee 4 ATTACHMENT A Comparison of Cities Levying Commercial Parking Tax Entity Levying Tax Tax Rate No Limit Tax Due Date May be monthly, quarterly, or annual Penalty for Late Payment Each muncipality may develop own rules State (RCW 82.80.030) Bainbridge Island 30% Quarterly 10% per month Bremerton 15% Quarterly <30 days = 10% 31-60 days = 15% >61 days = 20% Mukilteo 8% or 25% (depends on location) Quarterly 10% per month SeaTac $3 per vehicle Monthly None Seattle 12.50% Quarterly 5% - 29% (varies according to RCW 82.32.090) Tukwila (current) 5% Monthly None Tukwila (Proposed) 15% Monthly 10% per month W:\1Users\Sherry\Finance Committee\Commercial Parking Tax -City Comparison A - City Comparison 0) ATTACHMENT B Financial Implications of Amending TMC 3.48 CURRENT R Tax Rate = 5% ° .e:, ;.?;. PARKING TAX REVENUE COMMERCIAL PARKING TAX REVENUE Tax Paid On -Time Tax Paid Late Late Fee (10%)1 CURRENT up `-ijul O (N Tax Paid On -Time 43,377 Tax Paid Late Late Fee (n/a) 43,377 Total Lo p N jan - 3,495 mar 10,964 - - 14,459 feb 76,791 9,038 - 9,549 - 63,878 18,587 mar 63,878 4,535 53,591 4,252 - 53,591 8,787 apr - 14,725 56,049 10,872 - - 25,597 may sep 6,882 - 14,411 - oct 21,293 jun - 6,240 nov 11,624 - - 17,864 jul 24,966 7,304 - 11,379 - $ 642,994 18,683 aug $ 642,994 7,599 10,167 - 17,766 sep 7,621 10,292 - 17,914 oct 6,384 10,011 - 16,395 nov 18,436 10,230 - 28,666 dec 8,322 - - 8,322 total $ 100,580 $ 113,751 $ - $ 214,331 PROPOSED Tax Rate = 15% Late Fe - 10% COMMERCIAL PARKING TAX REVENUE PROPOSED Tax Paid On -Time Tax Paid Late Late Fee (10%)1 Total up `-ijul O (N jan 43,377 - - 43,377 feb 55,762 - - 55,762 mar 26,360 - - 26,360 apr 76,791 - - 76,791 may 63,878 - - 63,878 jun 53,591 - - 53,591 56,049 - - 56,049 aug 53,297 - - 53,297 sep 53,741 - - 53,741 oct 49,184 - - 49,184 nov 85,999 - - 85,999 dec 24,966 - - 24,966 total $ 642,994 $ - $ - $ 642,994 1 It is assumed that taxes will be paid on time if a late payment penalty is enacted. W:\lUsers\Sherry\Finance Committee\Commercial Parking Tax -City Comparison Prior Collections 2016 214,331 2015 193,486 2014 143,535 2013 155,860 2012 149,081 00 ATTACHMENT C Comparison of Tukwila Taxes & Late Fees TMC Chapter Enacted in Tax Rate Collection Period Due Date Late Fee Assessed After Late Fee Amount GAMBLING TAX 3.08 1997 From 2% to 20% depending on type of activity Quarterly On or before last day of month following quarter in which tax was collected 15 days late 10% per month ADMISSIONS & ENTERTAINMENT TAX 3.20 � .--.:....,..41 1995 5% Monthly On or before last day of month following month in which tax was collected 1 day late 10% per month COMMERCIAL PARKING TAX 3.48 iiiiwhich 1998 5% Monthly On or before last day of month following month in tax was collected n/a n/a UTILITY TAX (electric, gas, telephone, 0 3.50 cable tv) 2002 6% (2007 +) 5% (2005-2006) 4% (2003-2004) Monthly (small entitles may file annually) On or before last day of month following month in which tax was collected 15 days late 10% per month 9 SOLID WASTE UTILITY 41.1 TAX3.511. 2009 6% Monthly On or before last day of month following month in which tax was collected 15 days late 10% per month REET #1 3.56 4 1986 0.25% Monthly Within 30 days of sale 1 day late 1% interest per month from time of sale until date of payment REET #2`-. 3.60 1999 0.25% Monthly Within 30 days of sale 1 day late 1% interest per month from time of sale until date of payment W:\1Users\Sherry\Finance Committee\Commercial Parking Tax -City Comparison C - All City Taxes 10 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 1852; REENACTING TUKWILA MUNICIPAL CODE CHAPTER 3.48, "COMMERCIAL PARKING TAX," RELATING TO THE LOCAL OPTION TRANSPORTATION TAX TO INCREASE THE TAX RATE AND ADOPT A PENALTY FOR LATE PAYMENT; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, pursuant to RCW 82.80.030, the City of Tukwila is authorized to fix and impose a parking tax on all persons engaged in a commercial parking business within its respective jurisdiction; and WHEREAS, in 1998 the Tukwila City Council adopted Ordinance No. 1852, pursuant to RCW 82.80.030, to levy a 5% parking tax on all commercial parking businesses within the City; and WHEREAS, the City Council has determined that a rate increase is warranted as the City has a substantial need to increase tax revenue in order to discharge the expected expenses and obligations of the City, and based on review of neighboring cities' tax rates, and noting that the current tax rate has not been altered since its adoption 20 years ago; and WHEREAS, in addition to a rate increase, the Council desires the adoption of a penalty for late payment, as the timely payment of the tax is difficult to enforce absent a late penalty and nearly 50% of parking taxes in 2016 were remitted to the City after the due date, and it is standard practice for City taxes to include a penalty for late payment in order to provide stability for the City's budgeting purposes; and WHEREAS, the City held a duly noticed public hearing on this tax increase on November 27, 2017; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: W: Word Processing\Ordinances\Commercial Parking Tax amended -TMC 3.48 11-8-17 SW:bjs Page 1 of 6 11 Section 1. Repealer. Ordinance No. 1852, as codified at Tukwila Municipal Code Chapter 3.48, is hereby repealed in its entirety. Section 2. TMC Chapter 3.48 Reenacted. Tukwila Municipal Code (TMC) Chapter 3.48 is hereby reenacted to read as follows: CHAPTER 3.48 COMMERCIAL PARKING TAX Sections: 3.48.010 Definitions 3.48.020 Exemptions 3.48.030 Local Option Transportation Tax Imposed 3.48.040 Tax in Addition to Other License Fees or Taxes 3.48.050 Exempt Vehicles 3.48.060 Taxes Collected by Business Operators 3.48.070 Late Penalty 3.48.080 Use of Fund 3.48.090 Application Liability and Reporting 3.48.100 Violation/Penalty 3.48.110 Appeal Procedure Section 3. TMC Section 3.48.010 is hereby reenacted to read as follows: 3.48.010 Definitions The following definitions shall apply throughout this chapter: 1. "Commercial parking business" means the ownership, lease, operation or management of a commercial parking lot in which fees are charged for parking. 2. "Commercial parking" means any transaction or arrangement whereby a vehicle is parked and a fee is charged for parking or allowing the vehicle to be parked. Commercial parking shall include instances where a fee is charged specifically for the parking of a vehicle. This shall include any business which uses part or all of its area to park vehicles for a fee where no other service, lodging or business is being provided or conducted in conjunction with the parking of the vehicle. Commercial parking shall also include instances such as when a guest of a hotel, motel or other lodging establishment is allowed to park or leave his/her vehicle before or after his or her lodging or business stay there so that, for a fee, the guest's vehicle is parked at the hotel, motel or other lodging establishment during days when the guest is no longer staying there. W: Word Processing\Ordinances\Commercial Parking Tax amended -TMC 3.48 11-8-17 SW:bjs 12 Page 2 of 6 Section 4. TMC Section 3.48.020 is hereby reenacted to read as follows: 3.48.020 Exemptions The following exemptions to the commercial parking tax are allowed: 1. Local employee parking, with parking spaces provided or reserved for use by an employee who works within the City, where the employee parks his or her vehicle in connection with his or her employment, without regard to whether arrangements or payment for the parking is made by the employee or by his or her employer. 2. Apartments and condominiums, where parking is provided in conjunction with arrangements for residential living spaces. 3. Offices, retail establishments, warehouses and industrial buildings, where parking is provided in association with tenant arrangements for the use of such facilities. Section 5. TMC Section 3.48.030 is hereby reenacted to read as follows: 3.48.030 Local Option Transportation Tax Imposed There is hereby levied a special local option transportation tax to be imposed in connection with commercial parking businesses within the City. The tax shall be imposed at the rate of 5% 15% of the gross revenues generated by non-exempt commercial parking charges and fees. Section 6. TMC Section 3.48.040 is hereby reenacted to read as follows: 3.48.040 Tax in Addition to Other License Fees or Taxes The tax levied under this chapter shall be in addition to any license fee or tax imposed or levied under any law, statute or ordinance whether imposed or levied by the City, State or other governmental entity or political subdivision. Section 7. TMC Section 3.48.050 is hereby reenacted to read as follows: 3.48.050 Exempt Vehicles The tax shall not be levied on vehicles with official State disabled person decals; government vehicles which are exempt from tax, and tax-exempt carpool vehicles. Section 8. TMC Section 3.48.060 is hereby reenacted to read as follows: 3.48.060 Taxes Collected by Business Operators Taxes imposed herein shall be collected by the operators of the commercial parking businesses, and shall be due and payable to the City in monthly installments. The operators of the commercial parking businesses shall remit to the City the local option transportation taxes collected on or before the last day of the month following the month W: Word Processing\Ordinances\Commercial Parking Tax amended -TMC 3.48 11-8-17 SW:bjs Page 3 of 6 13 during which the taxes were collected. The City shall be authorized to review and inspect financial records involving activities of businesses which are taxable by this tax, at least quarterly each year. Section 9. TMC Section 3.48.070 is hereby established to read as follows: 3.48.070 Late Penalty If a Commercial Parking Business subject to this tax fails to pay any tax required by this chapter within 15 days after the due date thereof, there shall be added to such tax a penalty of 10% of the tax per month for each month overdue, which shall be added to the amount of the tax due. Section 10. TMC Section 3.48.080 is hereby reenacted to read as follows: 3.48.0-7-0080 Use of Fund All revenues, assessments and other charges generated and collected as local option transportation taxes shall be placed in the City's 104 Bridge and Arterial Street Fund, to be used for transportation purposes within the Transportation Element of the Tukwila Comprehensive Transportation Plan, in accordance with RCW 82.80.070; and to be used for administration of the tax, including those activities of the City in keeping and tracking records, financial reports and other documents, reviewing filings and compiling reports by commercial parking businesses, and other activities involved in collection and enforcement of the tax. Section 11. TMC Section 3.48.090 is hereby reenacted to read as follows: 3.48.484090 Application and Liability and Reporting A. Any commercial parking business shall procure from the City an annual certificate of r. gistration, the fee for which shall initially be $1.00, and it shall be posted in a conspicuous place in the office of such a business. Annual renewals will be provided without a fee. All owners and lessees shall have joint liability for the collection and remittance to the City 401 of such tax. A. All officers, directors and managers of any organization or association operating a Commercial Parking Business, including owners and lessees of a parking facility used for Commercial Parking, shall be jointly and severally liable for the payment of said tax, penalties, and any fine imposed under this chapter W: Word Processing\Ordinances\Commercial Parking Tax amended -TMC 3.48 11-8-17 SW:bjs 14 Page 4 of 6 GB. The Finance Director shall have the power to adopt rules and regulations not inconsistent with the terms of this chapter for carrying out and enforcing the payment, collection and remittance of the tax herein levied; and a copy of the rules and regulations shall be on file and available for public examination in the City Clerk's officoCity of Tukwila Finance Department. Section 12. TMC Section 3.48.100 is hereby reenacted to read as follows: 3.48.0.90100 Violation/Penalty It is unlawful for any person, firm or corporation engaged in a Ceommercial laParking bBusiness to fail or refuse to collect and remit parking taxes as required by the provisions of this chapter or to gain for himself or herself some advantage or benefit from the tax, whether direct or indirect. Any such violation shall constitute a misdemeanor and shall be punishable by a fine not to exceed $1,000 and/or by imprisonment not exceeding 90 days. Any such fine shall be in addition to any tax and penalties required. Section 13. TMC Section 3.48.110 is hereby established to read as follows: 3.48.1-00110 Appeal Procedure A. Any person aggrieved by the amount calculation of the tax determined to be due to the City pursuant to this chapter may appeal to the Finance Director or his/her designee from such determination by filing a written notice of appeal with the City Clerk within 20 calendar days from the date on which such person was given notice of the tax. The notice of appeal must state the grounds for appeal, including a detailed explanation of why the amount of the tax was incorrect. The Finance Director or designee shall, as soon as practicable, fix a time and place for the hearing for such appeal. Notice of the hearing the date of the hearing review the basis for the appeal, and may request clarification from the appellant. After the review is complete, the Finance Director or designee shall issue an administrative decision that may sustain or modify the amount of tax owed. Notice of the administrative decision shall be sent to the appellant by certified mail within 10 days of issuance. B. The appellant, if aggrieved by the decision of the Finance Director or designee, may then appeal to the City Hearing Examiner within 20 calendar days of the date of -the administrative decision is mailed to the appellant. The notice of appeal must state the grounds for appeal, including a detailed explanation of why the administrative decision is incorrect. The notice of appeal must be accompanied by an Appeal Fee in accordance with the fee schedule adopted by resolution of the City Council. C. Upon timely filing of a notice of appeal, the Finance Director shall schedule a hearing on the appeal before the City's Hearing Examiner. The hearing shall be conducted no later than 30 days from the date of the notice of appeal, unless an extension is agreed to by the appellant or otherwise ordered by the Hearing Examiner for good cause shown. Notice of the hearing and the appeal shall be given to the appellant by certified mail at least five days prior to the date of the hearing. W: Word Processing\Ordinances\Commercial Parking Tax amended -TMC 3.48 11-8-17 SW:bjs Page 5 of 6 15 D. The hearing shall be governed by the City of Tukwila Hearing Examiner's procedural rules. The hearing shall be de novo. The decision of the City's Hearing Examiner or other hearing body shall be based upon a preponderance of the evidence. The burden of proof shall be on the appellant. The Hearing Examiner or other hearing body may affirm, reverse or modify the Finance Director's decision. E. Within 20 business days, excluding holidays recognized by the City of Tukwila, from the date of the hearing on an appeal under this section, the Hearing Examiner shall issue a written decision which shall set forth the reasons therefor. Section 14. 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 15. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 16. 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 on January 1, 2018 after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2017. 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: W: Word Processing\Ordinances\Commercial Parking Tax amended -TMC 3.48 11-8-17 SW:bjs 16 Page 6 of 6 trA A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A FEE SCHEDULE FOR TUKWILA MUNICIPAL CODE CHAPTER 3.48, "COMMERCIAL PARKING TAX." WHEREAS, the City Council intends to remove specific amounts for fees and charges from the Tukwila Municipal Code in favor of a City-wide fee resolution; and WHEREAS, the updated commercial parking tax ordinance references an appeal process, including an appeal fee, which will be included as part of the City-wide fee resolution; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Fee Schedule. The following fee shall be charged to appellants by the City of Tukwila Finance Department to appeal a commercial parking tax decision: Type of appeal Fee Hearing Examiner Appeal Fee TMC 3.48.110 $250.00 Section 2. Effective Date. The fee schedule contained in this resolution shall be effective as of January 1, 2018. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2017. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Dennis Robertson, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Rachel B. Turpin, City Attorney W:\Word Processing\Resolutions\Commercial parking tax appeal fee schedule 11-14-17 SW:bjs Page 1 of 1 17 18 Finance Committee Minutes November21, 2017 C. Ordinance: Financing Public Safety Plan Public Works Shops Facility Staff is seeking Council approval of an ordinance to authorize issuance of one or more series of limited tax obligation (LTGO) bonds in the aggregate principal amount not to exceed $20,000,000 to finance the acquisition of land and construction of the Public Works shops facility included in the Public Safety Plan. The Council authorized the acquisition of parcels to site the facility on November 6, 2017. Because the amount and timing of funds needed has a degree of certainty, this ordinance was prepared for adoption now so that the City would have the financing tools in place. In addition, it was prepared to include the greatest level of flexibility, including the option for short-term financing. Staff distributed a new info memo that corrects an error and shows that the debt service will be under what was budgeted by about half. The ordinance will be valid for one year. Chair Seal asked about how the Council would be kept informed or provide necessary approvals throughout the whole purchase process, as some may be concerned this ordinance would serve as a blank check. Ms. Gregory pointed out that on page 54, Section 12(3)(4) the ordinance provides that the Council must receive a report describing the final terms of the Bonds sold pursuant to the Sale document. The Council would also remain closely involved through consideration and potential approval of the purchase and sale agreement for the property. The disclosure document could also be provided to the Council as the transaction proceeds. The Committee expressed support for the ordinance being in place and providing flexibility for future financing decisions. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. D. Commercial Parking Tax Legislation Staff is seeking Council approval of an ordinance to amend Tukwila Municipal Code 3.48 to increase the commercial parking tax from 5% to 15% and impose a late penalty of 10% per month. The commercial parking tax was established in 1998 and has not been updated since then. An increase to 15% will make the rate comparable to tax rates in surrounding jurisdictions. There are currently nine parking facilities in Tukwila that charge customers and are therefore subject to this tax. Parking tax revenues are restricted to transportation projects. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. E. Resolution: Equity Policy Staff is seeking Council approval of a resolution that would adopt an equity policy for the City. The policy was written by an ad hoc employee committee, then further refined and approved by the Equity and Social Justice Commission. Since the Committee was last briefed, staff presented the draft to other staff in all departments. As a result of that, "gender identity" was added to the list of individuals and groups deserving of equity in Section 1. In section IV.5, "contractors" was added to the list of groups who will receive an equity toolkit from the City. The Equity and Social Justice Commission approved these two changes as well. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. There was consensus to consider the ESRI Enterprise License Agreement as the next order of business. F. Enterprise License Agreement: GIS Mapping Software Staff is seeking Council approval of a two-year agreement with Environmental Systems Research Institute, Inc. (ESRI) in the amount not to exceed $55,000 for a GIS enterprise license. Currently there is one staff member assigned to GIS and this licensing agreement will provide 19 20 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/27/17 PMc 41/MC J L. R 12/04/ 17 PMc ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other AltsDate Mtg Date Altg Date 12/4/17 SPONSOR ❑Council ❑Mayor ❑1 --IR ❑DCD ►1 Finance Fire ❑IS P&R Police ❑Pr ❑Court SPONSOR'S The Public Works shops portion of the Public Safety Plan will be financed through SUMMARY Councilmanic bonds and other means. On November 6, 2017, the City Council authorized the acquisition of parcels, including through eminent domain, to site the justice center, fire station 54 and the Public Works shops. The proceeds of the proposed bond issue(s) will be used to finance the acquisition of property for the Public Works shops and pay for soft costs through mid -2019. REVIEWED BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Trans &Infrastructure ❑ Arts Comm. DATE: 11/21/17 ►/ Finance Comm. ❑ Public Safety Comm. Comm. ❑ Planning Comm. CHAIR: SEAL ITEM INFORMATION ITEM No. 4.B. 21 STAFF SPONSOR: PEGGY MCCARTHY ORIGINAL AGENDA DATE: 11/27/17 AGENDA ITEM Trrl,r? Approve an ordinance for issuance of LTGO bonds in an amount not to exceed $20,000,000 for the acquisition of land and construction of City maintenance facilities as part of the Public Safety Plan. CATEGORY // Discussion 11/27/17 ❑ Motion Mtg Date ❑ Resolution Altg Date // Ordinance ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other AltsDate Mtg Date Altg Date 12/4/17 SPONSOR ❑Council ❑Mayor ❑1 --IR ❑DCD ►1 Finance Fire ❑IS P&R Police ❑Pr ❑Court SPONSOR'S The Public Works shops portion of the Public Safety Plan will be financed through SUMMARY Councilmanic bonds and other means. On November 6, 2017, the City Council authorized the acquisition of parcels, including through eminent domain, to site the justice center, fire station 54 and the Public Works shops. The proceeds of the proposed bond issue(s) will be used to finance the acquisition of property for the Public Works shops and pay for soft costs through mid -2019. REVIEWED BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Trans &Infrastructure ❑ Arts Comm. DATE: 11/21/17 ►/ Finance Comm. ❑ Public Safety Comm. Comm. ❑ Planning Comm. CHAIR: SEAL ❑ Parks COMMITTEE RECOMMENDATIONS: SPONsoR/ADMIN. CoMMI'ITEE Finance Department Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/17 MTG. DATE ATTACHMENTS 11/27/17 Informational Memorandum dated 11/15/17 Ordinance in Draft Form Presentation by City's Financial Advisor, PFM Minutes from the Finance Committee meeting of 11/21/17 12/7/14 21 22 TO: FROM: CC: DATE: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Finance Committee Peggy McCarthy Mayor Ekberg November 15, 2017 SUBJECT: Bond Ordinance to Finance the Public Works Shops portion of the Public Safety Plan ISSUE Approve an ordinance for the issuance of one or more series of limited tax obligation (LTGO) bonds in the aggregate principal amount not to exceed $20,000,000 to finance the acquisition of land and construction of City maintenance facilities. BACKGROUND Pursuant to an affirmative vote on November 8, 2016, $36,709,954 of unlimited tax general obligation (UTGO) bonds were issued to finance the justice center, the fire station and fire equipment and apparatus portion of the Public Safety Plan. The Public Works shops portion of the Public Safety Plan will be financed through councilmanic bonds and other means. On November 6, 2017, the City Council authorized the acquisition of parcels, including through eminent domain, to site the justice center, fire station 54 and the Public Works shops. DISCUSSION The proceeds of the proposed bond issue(s) will be used to finance the acquisition of property for the Public Works shops and pay for soft costs through mid -2019. Since the amount and timing of funds needed is dependent on the speed with which the property purchase and sale agreements can be negotiated, or legal decisions reached, the ordinance authorizes one or more bond issues to maximize flexibility and minimize financing costs. It also authorizes short-term financing (i.e., a bank loan), if funds are needed very quickly. FINANCIAL IMPACT Over a 5 -year period the budgeted debt service will more than cover the estimated actual debt service. In Thous$ DEBT SERVICE 2018 2019 2020 2021 2022 TOTAL Actual estimate - $20 million of proceeds $ 650 $ 825 $ 825 $ 825 $ 1,550 $ 4,675 Budgeted - $29.5 million of proceeds: -- governmental debt service 246 713 1,180 1,180 1,180 4,498 -- utilities debt service 246 713 1,180 1,180 1,180 4,498 Total Budgeted 492 1,426 2,359 2,359 2,359 8,996 Actual Estimate Over (Under) Budget $ 158 $ (601) $ (1,534) $ (1,534) $ (809) $ (4,321) RECOMMENDATION The Council is being asked to approve the ordinance and consider this item at the November 27, 2017 Committee of the Whole meeting and subsequent December 4, 2017 Regular Meeting. ATTACHMENTS Draft bond ordinance. Presentation by PFM 23 24 9-1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE ISSUANCE OF ONE OR MORE SERIES OF LIMITED TAX GENERAL OBLIGATION BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $20,000,000 TO FINANCE AND/OR REIMBURSE COSTS RELATED TO THE ACQUISITION OF LAND AND THE CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF MAINTENANCE AND OTHER CITY FACILITIES AND TO PAY COSTS OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF THE SALE OF THE BONDS; DELEGATING AUTHORITY TO APPROVE THE METHOD OF SALE AND THE FINAL TERMS OF THE BONDS; AND PROVIDING FOR OTHER MATTERS RELATING THERETO; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council (the "Council") of the City of Tukwila, Washington (the "City") has deemed it is in the best interest of the City to acquire certain parcels of land, including through eminent domain, and to construct, improve and equip maintenance and other City facilities (together, the "Project"); and WHEREAS, after due consideration the Council has determined that it is in the best interest of the City to authorize the issuance and sale of limited tax general obligation bonds to pay all or a portion of the costs of the Project and to pay costs of issuance for the Bonds; and WHEREAS, the Council wishes to delegate authority to the Mayor, City Administrator, and Finance Director, or his or her designee (each, a "Designated Representative"), for a limited time, to select the method of bond sale for each series of bonds authorized hereunder that is in the best interest of the City (if any) and to approve the interest rates, maturity dates, redemption terms and principal maturities for each series of Bonds within the parameters set by this ordinance; and W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs Page 1 of 18 25 WHEREAS, the Bonds of each series shall be sold by either a direct purchase or be underwritten as set forth herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Definitions. As used in this ordinance, the following words and terms shall have the following meanings, unless the context or use indicates another or different meaning or intent. Unless the context indicates otherwise, words importing the singular number shall include the plural number and vice versa. Beneficial Owner means any person that has or shares the power, directly or indirectly, to make investment decisions concerning ownership of any Underwritten Bonds (including persons holding Underwritten Bonds through nominees, depositories or other intermediaries). Bond Counsel means Pacifica Law Group LLP, or an attorney at law or a firm of attorneys, selected by the City, of nationally recognized standing in matters pertaining to the tax exempt nature of interest on bonds issued by states and their political subdivisions. Bond Purchase Contract means the contract, if any, for the purchase of any Underwritten Bonds sold by negotiated sale to the Underwriter, executed pursuant to Section 12. Bond Register means the registration books showing the name, address and tax identification number of each Registered Owner of a series of Bonds, maintained pursuant to Section 149(a) of the Code. Bond Registrar means: (a) for any Underwritten Bonds, initially, the fiscal agent of the State, for the purposes of registering and authenticating the Underwritten Bonds, maintaining the Bond Register for the Underwritten Bonds, effecting transfer of ownership of the Underwritten Bonds and paying interest on and principal of the Underwritten Bonds; and (b) for any Direct Purchase Bonds, the Finance Director of the City. Bonds mean the City's Limited Tax General Obligation Bonds, 2018, with such series designation as approved by a Designated Representative, authorized to be issued pursuant to the terms of this ordinance. Certificate of Award means one or more certificates, if any, for the purchase of any Underwritten Bonds sold by competitive sale awarding the Bonds of a series to the initial purchaser as set forth in Section 12 of this ordinance. City means the City of Tukwila, a municipal corporation duly organized and existing under the laws of the State. City Clerk means the duly appointed and acting City Clerk of the City or the successor to the duties of that office. W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs 26 Page 2 of 18 City Administrator means the duly appointed and acting City Administrator, including anyone acting in such capacity for the position, or the successor to the duties of that office. Closing means the date of delivery of a Bond or Bonds of a series to the initial purchaser thereof. Code means the Internal Revenue Code of 1986 as in effect on the date of issuance of a series of Bonds or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the date of issuance of such series of Bonds, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under the Code. Commission means the United States Securities and Exchange Commission. Continuing Disclosure Certificate means the written undertaking for the benefit of the owners and Beneficial Owners of any Underwritten Bonds as required by Section (b)(5) of the Rule. Council or City Council means the Tukwila City Council, as the general legislative body of the City as the same is duly and regularly constituted from time to time. Debt Service Fund means the fund or account created pursuant to this ordinance for the purpose of paying debt service on the Bonds. Designated Representative means the Mayor, City Administrator and Finance Director, or his or her designee. The signature of one Designated Representative shall be sufficient to bind the City. Direct Purchase Bonds means any Bonds or Bond sold to a Direct Purchaser pursuant to Section 12 of this ordinance. Direct Purchaser means any bank or other financial institution selected to purchase (or to accept delivery of one or more Direct Purchase Bonds to evidence the City's obligations under a Loan Agreement) one or more Direct Purchase Bonds pursuant to Section 12 of this ordinance. DTC means The Depository Trust Company, New York, New York, a limited purpose trust company organized under the laws of the State of New York, as depository for any Underwritten Bonds pursuant to Section 4(a) of this ordinance. Fair Market Value means the price at which a willing buyer would purchase an investment from a willing seller in a bona fide, arm's-length transaction, except for specified investments as described in Treasury Regulation §1.148-5(d)(6), including United States Treasury obligations, certificates of deposit, guaranteed investment contracts, and investments for yield restricted defeasance escrows. Fair Market Value is generally determined on the date on which a contract to purchase or sell an investment becomes binding, and, to the extent required by the applicable regulations under the Code, the term "investment" will include a hedge. W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs Page 3 of 18 27 Federal Tax Certificate means one or more certificates executed by a Designated Representative setting forth the requirements of the Code for maintaining the tax exemption of interest on the Bonds of a series to be dated as of the date of Closing for such Bonds, and attachments thereto. Finance Director means the duly appointed and acting Finance Director of the City or the successor to such officer. Government Obligations means those obligations now or hereafter defined as such in chapter 39.53 RCW constituting direct obligations of the United States or obligations unconditionally guaranteed by the United States, as such chapter may be hereafter amended or restated. Letter of Representations means the Blanket Issuer Letter of Representations given by the City to DTC, as amended from time to time. Loan Agreement means one or more loan or purchase agreements, if any, between the City and a Direct Purchaser under which the Direct Purchaser will make a loan to the City, evidenced by a Direct Purchase Bond, or under which the Direct Purchaser will purchase the Direct Purchase Bond. Mayor or City Mayor means the elected Mayor of the City or the successor to the duties of that office. MSRB means the Municipal Securities Rulemaking Board or any successors to its functions. Official Statement means the disclosure document(s) prepared and delivered in connection with the issuance of any Underwritten Bonds. Project means the capital projects described in Section 2 of this ordinance. Project Fund means the account created pursuant to Section 8 of this ordinance. Record Date means the close of business for the Bond Registrar that is 15 days preceding any interest and/or principal payment or redemption date. Registered Owner means the person named as the registered owner of a Bond in the Bond Register. Rule means the Commission's Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time. Sale Document means the Bond Purchase Contract, Certificate of Award, or Loan Agreement if any, executed by a Designated Representative in connection with the sale of a series of Bonds pursuant to Section 12 of this ordinance, which shall provide for the name, principal and interest payment dates and amounts, redemption/prepayment rights, and other terms to describe such series of Bonds as determined to be necessary by a Designated Representative. State means the State of Washington. W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs 28 Page 4 of 18 Underwriter means any underwriter, in the case of a negotiated sale, or initial purchaser, in the case of a competitive sale, for any series of Underwritten Bonds selected pursuant to Section 12. Underwritten Bonds means Bonds of a series, if any, sold pursuant to a negotiated or a competitive sale by the City to an Underwriter pursuant to Section 12 of this ordinance. Section 2. Authorization of the Project. The Bonds are being issued to finance and/or reimburse the City for costs of acquiring certain parcels of land, including through eminent domain, and constructing, improving and equipping maintenance and other City facilities (together, the "Project") and paying costs of issuance for the Bonds. The cost of all necessary and other costs incurred in connection with the Project shall be paid from other City funds legally available for such purposes. Section 3. Authorization of Bonds and Bond Details. (a) General. For the purpose of paying and/or reimbursing the City for costs of the Project and paying costs of issuance, the City is hereby authorized to issue and sell one or more series of its limited tax general obligation bonds in an aggregate principal amount not to exceed $20,000,000 (the "Bonds"). The Bonds shall be general obligations of the City and shall be designated "City of Tukwila, Washington, Limited Tax General Obligation Bonds, 2018," with series designation or other such designation as determined to be necessary by a Designated Representative. The Bond or Bonds of a series shall be dated as of the date of Closing of such series of Bonds; shall be fully registered as to both principal and interest; and shall be sold from time to time under this ordinance as either Direct Purchase Bonds or Underwritten Bonds, as approved and executed by a Designated Representative pursuant to Section 12 hereof. (b) Underwritten Bonds. Any Bonds of a series may be sold as Underwritten Bonds. Underwritten Bonds shall be issued in denominations of $5,000, or any integral multiple thereof, within a series and maturity; shall be numbered separately in such manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification; shall bear interest payable on the dates set forth in the applicable Sale Document; and shall be subject to optional and/or mandatory redemption and mature on the dates and in the principal amounts set forth in the applicable Sale Document. (c) Direct Purchase Bonds. Any Bonds of a series may be sold as Direct Purchase Bonds. Direct Purchase Bonds shall be dated as of the date of delivery to the Direct Purchaser, shall be fully registered as to both principal and interest, shall be in one denomination, and shall mature on the date set forth in the applicable Sale Document. Direct Purchase Bonds shall bear interest from the dated date or the most recent date to which interest has been paid at the interest rate set forth in the applicable Sale Document. Interest on the principal amount of Direct Purchase Bonds shall be W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs Page 5 of 18 29 calculated per annum on a 30/360 basis, or as otherwise provided in the Bond and in the applicable Sale Document. Principal of and interest on Direct Purchase Bonds shall be payable at the times and in the amounts as set forth in the payment schedule attached to the Direct Purchase Bond. Section 4. Registration, Exchange and Payments. (a) Underwritten Bonds. (1) Bond Registrar/Bond Register. The City hereby specifies and adopts the system of registration approved by the Washington State Finance Committee from time to time through the appointment of a State fiscal agent. The City shall cause a bond register to be maintained by the Bond Registrar. So long as any Underwritten Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to permit the exchange or registration or transfer of Underwritten Bonds at its designated office. The Bond Registrar may be removed at any time at the option of the Finance Director upon prior notice to the Bond Registrar and a successor Bond Registrar appointed by the Finance Director. No resignation or removal of the Bond Registrar shall be effective until a successor shall have been appointed and until the successor Bond Registrar shall have accepted the duties of the Bond Registrar hereunder. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Underwritten Bonds transferred or exchanged in accordance with the provisions of such Underwritten Bonds and this ordinance and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its representations contained in the Certificate of Authentication of the Underwritten Bonds. (2) Registered Ownership. The City and the Bond Registrar, each in its discretion, may deem and treat the Registered Owner of each Underwritten Bond as the absolute owner thereof for all purposes (except as provided in the Continuing Disclosure Certificate), and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described in Section 4(A)(7), but such Underwritten Bond may be transferred as herein provided. All such payments made as described in Section 4(A)(7) shall be valid and shall satisfy and discharge the liability of the City upon such Underwritten Bond to the extent of the amount or amounts so paid. (3) DTC Acceptance/Letters of Representations. The Underwritten Bonds initially shall be held by DTC acting as depository. The City has executed and delivered to DTC a Blanket Issuer Letter of Representations. Neither the City nor the Bond Registrar shall have any responsibility or obligation to DTC participants or the persons for whom they act as nominees (or any successor depository) with respect to the Underwritten Bonds in respect of the accuracy of any records maintained by DTC (or any successor depository) or any DTC participant, the payment by DTC (or any successor depository) or any DTC participant of any amount in respect of the principal of or interest on Underwritten Bonds, any notice which is permitted or required to be given to Registered Owners under this ordinance (except such notices as shall be required to be given by the City to the Bond Registrar or to DTC (or any successor depository)), or W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs 30 Page 6 of 18 any consent given or other action taken by DTC (or any successor depository) as the Registered Owner. For so long as any Underwritten Bonds are held by a depository, DTC or its successor depository or its nominee shall be deemed to be the Registered Owner for all purposes hereunder, and all references herein to the Registered Owners shall mean DTC (or any successor depository) or its nominee and shall not mean the owners of any beneficial interest in such Underwritten Bonds. (4) Use of Depository. (A) The Underwritten Bonds shall be registered initially in the name of "Cede & Co.", as nominee of DTC, with one Underwritten Bond maturing on each of the maturity dates for the Underwritten Bonds in a denomination corresponding to the total principal therein designated to mature on such date. Registered ownership of such Underwritten Bonds, or any portions thereof, may not thereafter be transferred except: (i) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (ii) to any substitute depository appointed by the Finance Director pursuant to subsection (B) below or such substitute depository's successor; or (iii) to any person as provided in subsection (D) below. (B) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository or a determination by the Finance Director to discontinue the system of book entry transfers through DTC or its successor (or any substitute depository or its successor), the Finance Director may hereafter appoint a substitute depository. Any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it. (C) In the case of any transfer pursuant to clause (i) or (ii) of subsection (A) above, the Bond Registrar shall, upon receipt of all outstanding Underwritten Bonds together with a written request on behalf of the Finance Director, issue a single new Underwritten Bond for each maturity of that series then outstanding, registered in the name of such successor or such substitute depository, or their nominees, as the case may be, all as specified in such written request of the Finance Director. (D) In the event that: (A) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained; or (B) the Finance Director determines that it is in the best interest of the beneficial owners of the Underwritten Bonds that such owners be able to obtain physical Bond certificates, the ownership of such Underwritten Bonds may then be transferred to any person or entity as herein provided, and shall no longer be held by a depository. The Finance Director shall deliver a written request to the Bond Registrar, together with a supply of physical Bonds, to issue Underwritten Bonds as herein provided in any authorized denomination. Upon receipt by the Bond Registrar of all then outstanding Underwritten Bonds together with a written request on behalf of the Finance Director to the Bond Registrar, new Underwritten Bonds of such series shall be issued in the appropriate denominations and registered in the names of such persons as are requested in such written request. W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs Page 7 of 18 31 (5) Registration of Transfer of Ownership or Exchange; Change in Denominations. The transfer of any Underwritten Bond may be registered and Underwritten Bonds may be exchanged, but no transfer of any such Underwritten Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Underwritten Bond duly executed by the Registered Owner or such Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such surrender, the Bond Registrar shall cancel the surrendered Underwritten Bond and shall authenticate and deliver, without charge to the Registered Owner or transferee therefor, a new Underwritten Bond (or Underwritten Bonds at the option of the new Registered Owner) of the same series, date, maturity, and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Underwritten Bond, in exchange for such surrendered and cancelled Underwritten Bond. Any Underwritten Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of the same series, date, maturity, and interest rate, in any authorized denomination. The Bond Registrar shall not be obligated to register the transfer of or to exchange any Underwritten Bond during the 15 days preceding any principal payment or redemption date. (6) Bond Registrar's Ownership of Bonds. The Bond Registrar may become the Registered Owner of any Underwritten Bond with the same rights it would have if it were not the Bond Registrar, and to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the right of the Registered Owners or beneficial owners of Underwritten Bonds. (7) Place and Medium of Payment. Both principal of and interest on the Underwritten Bonds shall be payable in lawful money of the United States of America. Interest on the Underwritten Bonds shall be calculated on the basis of a year of 360 days and twelve 30 -day months. For so long as all Underwritten Bonds are held by a depository, payments of principal thereof and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the Letter of Representations. In the event that the Underwritten Bonds are no longer held by a depository, interest on the Underwritten Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the Record Date, or upon the written request of a Registered Owner of more than $1,000,000 of Underwritten Bonds (received by the Bond Registrar at least by the Record Date), such payment shall be made by the Bond Registrar by wire transfer to the account within the United States designated by the Registered Owner. Principal of the Underwritten Bonds shall be payable upon presentation and surrender of such Underwritten Bonds by the Registered Owners at the designated office of the Bond Registrar. W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs 32 Page 8 of 18 If any Underwritten Bond is duly presented for payment and funds have not been provided by the City on the applicable payment date, then interest will continue to accrue thereafter on the unpaid principal thereof at the rate stated on the Underwritten Bond until the Underwritten Bond is paid. (b) Direct Purchase Bonds. (1) Registrar/Bond Registrar. The Finance Director shall act as Bond Registrar for any Direct Purchase Bonds. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver the Direct Purchase Bonds if transferred or exchanged in accordance with the provisions of the Direct Purchase Bonds and this ordinance and to carry out all of the Bond Registrar's powers and duties under this ordinance with respect to Direct Purchase Bonds. (2) Registered Ownership. The City and the Bond Registrar may deem and treat the Registered Owner of any Direct Purchase Bond as the absolute owner for all purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. (3) Transfer or Exchange of Registered Ownership. Direct Purchase Bonds shall not be transferrable without the consent of the City unless: (A) the Direct Purchaser's corporate name is changed and the transfer is necessary to reflect such change; or (B) the transferee is a successor in interest of the Direct Purchaser by means of a corporate merger, an exchange of stock, or a sale of assets. Notwithstanding the foregoing, Direct Purchase Bonds may be transferred upon satisfaction of the requirements, if any, set forth in the applicable Sale Document and the Direct Purchase Bonds. Section 5. Redemption Prior to Maturity and Purchase of Bonds. (a) Mandatory Redemption of Term Bonds and Optional Redemption. The Bonds of each series shall be subject to mandatory redemption to the extent, if any, set forth in the applicable Sale Document and as approved by a Designated Representative pursuant to Section 12. The Bonds of each series shall be subject to optional redemption and/or prepayment on the dates, at the prices and under the terms set forth in the applicable Sale Document approved by a Designated Representative pursuant to Section 12. (b) Purchase of Bonds. The City reserves the right to purchase any or all of the Bonds offered to it at any time at a price deemed reasonable by the Finance Director plus accrued interest to the date of purchase. (c) Selection of Bonds for Redemption. If the Underwritten Bonds of a series are held in book -entry only form, the selection of particular Underwritten Bonds within a series and maturity to be redeemed shall be made in accordance with the operational arrangements then in effect at DTC. If the Underwritten Bonds of a series are no longer held by a depository, the selection of such Underwritten Bonds of such series to be W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs Page 9 of 18 33 redeemed and the surrender and reissuance thereof, as applicable, shall be made as provided in the following provisions of this subsection (c). If the City redeems at any one time fewer than all of the Underwritten Bonds of a series having the same maturity date, the particular Underwritten Bonds or portions of Underwritten Bonds of such series and maturity to be redeemed shall be selected by lot (or in such manner determined by the Bond Registrar) in increments of $5,000. In the case of an Underwritten Bond of a denomination greater than $5,000, the City and the Bond Registrar shall treat each Underwritten Bond as representing such number of separate Underwritten Bonds each of the denomination of $5,000 as is obtained by dividing the actual principal amount of such Underwritten Bond by $5,000. In the event that only a portion of the principal sum of an Underwritten Bond is redeemed, upon surrender of such Underwritten Bond at the designated office of the Bond Registrar there shall be issued to the Registered Owner, without charge therefor, for the then unredeemed balance of the principal sum thereof, at the option of the Registered Owner, an Underwritten Bond or Bonds of like series, maturity and interest rate in any of the denominations herein authorized. (d) Notice of Redemption or Prepayment. (1) Official Notice. Notice of any prepayment of Direct Purchase Bonds shall be provided by the City to the Direct Purchaser as provided in the applicable Sale Document. For so long as the Underwritten Bonds of a series are held by a depository, notice of redemption shall be given in accordance with the operational arrangements of DTC as then in effect, and neither the City nor the Bond Registrar shall provide any notice of redemption to any beneficial owners. The notice of redemption may be conditional. Thereafter (if the Underwritten Bonds are no longer held in uncertificated form), notice of redemption shall be given in the manner hereinafter provided. Unless waived by any owner of Underwritten Bonds to be redeemed, official notice of any such redemption (which redemption may be conditioned by the Bond Registrar on the receipt of sufficient funds for redemption or otherwise) shall be given by the Bond Registrar on behalf of the City by mailing a copy of an official redemption notice by first class mail at least 20 days and not more than 60 days prior to the date fixed for redemption to the Registered Owner of the Underwritten Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such Registered Owner to the Bond Registrar. All official notices of redemption shall be dated and shall state: (A) the redemption date, (B) the redemption price, (C) if fewer than all outstanding Underwritten Bonds of a series are to be redeemed, the identification by maturity (and, in the case of partial redemption, the respective principal amounts) of the Underwritten Bonds to be redeemed, W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs 34 Page 10 of 18 (D) any conditions to redemption, (E) that unless conditional notice of redemption has been given and such conditions have either been satisfied or waived, on the redemption date the redemption price shall become due and payable upon each such Underwritten Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and (F) the place where such Underwritten Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the designated office of the Bond Registrar. On or prior to any redemption date, unless such redemption has been rescinded or revoked, the City shall deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the Underwritten Bonds or portions of Underwritten Bonds which are to be redeemed on that date. The City retains the right to rescind any redemption notice and the related optional redemption of Underwritten Bonds by giving notice of rescission to the affected registered owners at any time on or prior to the scheduled redemption date. Any notice of optional redemption that is so rescinded shall be of no effect, and the Underwritten Bonds for which the notice of optional redemption has been rescinded shall remain outstanding. (2) Effect of Notice; Bonds Due. If notice of redemption has been given and not rescinded or revoked, or if the conditions set forth in a conditional notice of redemption have been satisfied or waived, the Underwritten Bonds or portions of Underwritten Bonds to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date such Underwritten Bonds or portions of Underwritten Bonds shall cease to bear interest. Upon surrender of such Underwritten Bonds for redemption in accordance with said notice, such Underwritten Bonds shall be paid by the Bond Registrar at the redemption price. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. All Underwritten Bonds which have been redeemed shall be canceled by the Bond Registrar and shall not be reissued. (3) Additional Notice. In addition to the foregoing notice, further notice shall be given by the City as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus: (A) the CUSIP numbers of all Underwritten Bonds being redeemed; (B) the date of issue of the Underwritten Bonds as originally issued; (C) the rate of interest borne by each Underwritten Bond being redeemed; (D) the series and maturity date of each Underwritten Bond being redeemed; and (E) any other descriptive information needed to identify accurately the Underwritten Bonds being redeemed. Each further notice of redemption may be sent at least 20 days before the redemption date to each party entitled to receive notice pursuant to Section 14 and the Continuing Disclosure Certificate and with such W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs Page 11 of 18 35 additional information as the City shall deem appropriate, but such mailings shall not be a condition precedent to the redemption of such Underwritten Bonds. (4) Amendment of Notice Provisions. The foregoing notice provisions of this Section 5, including but not limited to the information to be included in redemption notices and the persons designated to receive notices, may be amended by additions, deletions and changes in order to maintain compliance with duly promulgated regulations and recommendations regarding notices of redemption of municipal securities. Section 6. Form of Bonds. The Bonds shall be in substantially the form set forth in Exhibit A, which is incorporated herein by this reference. Section 7. Execution of Bonds. The Bonds of each series shall be executed on behalf of the City by the facsimile or manual signature of the Mayor and shall be attested to by the facsimile or manual signature of the City Clerk, and shall have the seal of the City impressed or a facsimile thereof imprinted, or otherwise reproduced thereon. In the event any officer who shall have signed or whose facsimile signatures appear on any of the Bonds shall cease to be such officer of the City before said Bonds shall have been authenticated or delivered by the Bond Registrar or issued by the City, such Bonds may nevertheless be authenticated, delivered and issued and, upon such authentication, delivery and issuance, shall be as binding upon the City as though said person had not ceased to be such officer. Any Bond may be signed and attested on behalf of the City by such persons who, at the actual date of execution of such Bond shall be the proper officer of the City, although at the original date of such Bond such persons were not such officers of the City. Only such Bonds as shall bear thereon a Certificate of Authentication manually executed by an authorized representative of the Bond Registrar shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this ordinance. Section 8. Application of Bond Proceeds. The Finance Director is hereby authorized to create a fund or account (the "Project Fund"), and subaccounts therein as necessary, for the purposes set forth in this section. Net proceeds of the Bonds shall be deposited in the Project Fund in the amounts specified in the closing memorandum prepared in connection with the issuance of the Bonds. Such proceeds shall be used to pay and/or reimburse the City for the costs of the Project and to pay costs of issuance of the Bonds. The Finance Director shall invest money in the Project Fund and the subaccounts contained therein in such obligations as may now or hereafter be permitted to cities of the State by law and which will mature prior to the date on which such money shall be needed, but only to the extent that the same are acquired, valued and disposed of at Fair Market Value. Upon completion of the Project, Bond proceeds W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs 36 Page 12 of 18 (including interest earnings thereon) may be used for other capital projects of the City or shall be transferred to the Debt Service Fund. Section 9. Tax Covenants. The City will take all actions necessary to assure the exclusion of interest on each series of Bonds from the gross income of the owners of such Bonds to the same extent as such interest is permitted to be excluded from gross income under the Code as in effect on the date of issuance of the Bonds, including but not limited to the following: (a) Private Activity Bond Limitation. The City will assure that the proceeds of the Bonds are not so used as to cause the Bonds to satisfy the private business tests of Section 141(b) of the Code or the private loan financing test of Section 141(c) of the Code. (b) Limitations on Disposition of Project. The City will not sell or otherwise transfer or dispose of: (i) any personal property components of the Project other than in the ordinary course of an established government program under Treasury Regulation 1.141-2(d)(4); or (ii) any real property components of the Project, unless it has received an opinion of nationally recognized bond counsel to the effect that such disposition will not adversely affect the treatment of interest on the Bonds as excludable from gross income for federal income tax purposes. (c) Federal Guarantee Prohibition. The City will not take any action or permit or suffer any action to be taken if the result of such action would be to cause any of the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code. (d) Rebate Requirement. The City will take any and all actions necessary to assure compliance with Section 148(f) of the Code, relating to the rebate of excess investment earnings, if any, to the federal government, to the extent that such section is applicable to the Bonds. (e) No Arbitrage. The City will not take, or permit or suffer to be taken, any action with respect to the proceeds of the Bonds which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Bonds would have caused the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code. (f) Registration Covenant. The City will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code until all Bonds have been surrendered and canceled. (g) Record Retention. The City will retain its records of all accounting and monitoring it carries out with respect to the Bonds for at least three years after the Bonds mature or are redeemed (whichever is earlier); however, if the Bonds are redeemed and refunded, the City will retain its records of accounting and monitoring at least three years after the earlier of the maturity or redemption of the obligations that refunded the Bonds. W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs Page 13 of 18 37 (h) Compliance with Federal Tax Certificate. The City will comply with the provisions of the Federal Tax Certificate with respect to each series of Bonds, which are incorporated herein as if fully set forth herein. The covenants of this Section will survive payment in full or defeasance of the Bonds. (i) Bank Qualification. The Finance Director is hereby authorized to designate each series of Bonds as "qualified tax-exempt obligations" under Section 265(b)(3) of the Code for investment by financial institutions if the City does not reasonably expect to issue more than $10,000,000 of qualified tax-exempt obligations in the calendar year in which the Bonds are issued. Section 10. Debt Service Fund and Provision for Tax Levy Payments. The City hereby authorizes the creation of a fund or account to be used for the payment of debt service on the Bonds (the "Debt Service Fund"). No later than the date each payment of principal of or interest on the Bonds becomes due, the City shall transmit sufficient funds, from the Debt Service Fund or from other legally available sources, to the Bond Registrar for the payment of such principal or interest. Money in the Debt Service Fund may be invested in legal investments for City funds, but only to the extent that the same are acquired, valued and disposed of at Fair Market Value. Any interest or profit from the investment of such money shall be deposited in the Debt Service Fund The City hereby irrevocably covenants and agrees for as long as any of the Bonds are outstanding and unpaid that each year it shall include in its budget and levy an ad valorem tax upon all the property within the City subject to taxation in an amount that will be sufficient, together with all other revenues and money of the City legally available for such purposes, to pay the principal of and interest on the Bonds as the same shall become due. The City hereby irrevocably pledges that the annual tax provided for herein to be levied for the payment of such principal and interest shall be within and as a part of the property tax levy permitted to cities without a vote of the electorate, and that a sufficient portion of each annual levy to be levied and collected by the City prior to the full payment of the principal of and interest on the Bonds will be and is hereby irrevocably set aside, pledged and appropriated for the payment of the principal of and interest on the Bonds. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and for the prompt payment of the principal of and interest on the Bonds when due. Section 11. Defeasance. In the event that the City, in order to effect the payment, retirement or redemption of any Bond, sets aside in the Debt Service Fund or in another special account, cash or noncallable Government Obligations, or any combination of cash and/or noncallable Government Obligations, in amounts and maturities which, together with the known earned income therefrom, are sufficient to redeem or pay and retire such Bond in accordance with its terms and to pay when due the interest and redemption premium, if any, thereon, and such cash and/or noncallable Government Obligations are irrevocably set aside and pledged for such purpose, then no further W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs 38 Page 14 of 18 payments need be made into the Debt Service Fund for the payment of the principal of and interest on such Bond. The owner of a Bond so provided for shall cease to be entitled to any lien, benefit or security of this ordinance except the right to receive payment of principal, premium, if any, and interest from the Debt Service Fund or such special account, and such Bond shall be deemed to be not outstanding under this ordinance. The City shall give written notice of defeasance of the Bonds in accordance with the Continuing Disclosure Certificate. Section 12. Sale of Bonds. (a) Bond Sale. The Council has determined that it would be in the best interest of the City to delegate to each Designated Representative, for a limited time, the authority to determine the method of sale for each series of Bonds and to approve the final interest rates, maturity dates, redemption terms and principal maturities for each series of Bonds. Each series of Bonds issued pursuant to this ordinance may be issued at the same or different times so long as each series complies with the terms hereof. Each Designated Representative is hereby authorized to approve the issuance, from time to time, of one or more series of Bonds and to approve whether the Bonds of such series shall be sold in a private placement to a Direct Purchaser or to an Underwriter through a competitive public sale or a negotiated sale, as set forth below. (b) Direct Purchase. If a Designated Representative determines that the Bonds of a series are to be sold by private placement, a Designated Representative shall select the Direct Purchaser that submits the proposal that is in the best interest of the City. Direct Purchase Bonds shall be sold to the Direct Purchaser pursuant to the terms of a Loan Agreement. (c) Negotiated Bond Sale. If a Designated Representative determines that the Bonds of a series are to be sold by negotiated public sale, a Designated Representative shall select the Underwriter that submits the proposal that is in the best interest of the City. Such Bonds shall be sold to the Underwriter pursuant to the terms of a Bond Purchase Contract. (d) Competitive Sale. If a Designated Representative determines that the Bonds of a series are to be sold at a competitive public sale, a Designated Representative shall: (1) establish the date of the public sale; (2) establish the criteria by which the successful bidder will be determined; (3) establish the criteria for a good faith deposit; (4) cause notice of the public sale to be given; and (5) provide for such other matters pertaining to the public sale as he or she deems necessary or desirable. A Designated Representative shall cause the notice of sale to be given and provide for such other matters pertaining to the public sale as he or she deems necessary or desirable. Such Bonds shall be sold to the Underwriter pursuant to the terms of a Certificate of Award. W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs Page 15 of 18 39 (e) Sale Parameters. Subject to the terms and conditions set forth in this Section 12, each Designated Representative is hereby authorized to approve the method of sale and the final interest rates, aggregate principal amount, principal maturities, and redemption rights for each series of Bonds in the manner provided hereafter so long as: (1) the aggregate principal (face amount) amount of all Bonds issued from time to time under this ordinance does not exceed $20,000,000; (2) the final maturity date for each series of Bonds is no later than December 1, 2038; (3) the aggregate purchase price for each series of Bonds shall not be less than 98% of the aggregate stated principal amount of such series of Bonds, excluding any original issue discount; and (4) the true interest cost for each series of Bonds (in the aggregate for such series) does not exceed 4.5%. Subject to the terms and conditions set forth in this section, each Designated Representative is hereby authorized to execute the appropriate Sale Document on behalf of the City. The signature of one Designated Representative shall be sufficient to bind the City. Following the execution of a Sale Document, a Designated Representative shall provide a report to the Council describing the final terms of the Bonds sold pursuant to such Sale Document and approved pursuant to the authority delegated in this section. The authority granted to the Designated Representatives by this Section 12 shall expire one year after the effective date of this ordinance. After such date additional Council approval shall be necessary to sell and issue Bonds pursuant to the terms of this ordinance. (f) Delivery of Bonds; Documentation. Upon the passage and approval of this ordinance and execution of the applicable Sale Document for a series of Bonds, the proper officials of the City, including the Designated Representatives and the City Clerk, are authorized and directed to undertake all action necessary for the prompt execution and delivery of such series of Bonds to the purchaser thereof and further to execute all closing certificates and documents required to effect the closing and delivery of the Bonds in accordance with the terms of the applicable Sale Document. Such documents may include, but are not limited to, documents related to a municipal bond insurance policy delivered by an insurer to insure the payment when due of the principal of and interest on all or a portion of such series of Bonds as provided therein, if such insurance is determined by a Designated Representative to be in the best interest of the City. Section 13. Preliminary and Final Official Statements. Each Designated Representative is hereby authorized to deem final the preliminary Official Statement relating to a series of Underwritten Bonds for the purposes of the Rule. Each Designated Representative is further authorized to approve for purposes of the Rule, on behalf of the City, the final Official Statement relating to the issuance and sale of such series of Underwritten Bonds and the distribution of such final Official Statement W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs 40 Page 16 of 18 pursuant thereto with such changes, if any, as may be deemed by him or her to be appropriate. Section 14. Undertaking to Provide Ongoing Disclosure. (a) The City covenants to execute and deliver at the time of Closing of any Underwritten Bonds a Continuing Disclosure Certificate. Each Designated Representative is hereby authorized to execute and deliver a Continuing Disclosure Certificate upon the issuance, delivery and sale of any Underwritten Bonds with such terms and provisions as such officer shall deem appropriate and in the best interests of the City. (b) The City may agree to provide the Direct Purchaser certain financial or other information and agree to such additional covenants as determined to be necessary by a Designated Representative and as set forth in the Loan Agreement and approved by a Designated Representative pursuant to Section 12. Section 15. Lost, Stolen or Destroyed Bonds. In case any Bond or Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like series, amount, date and tenor to the Registered Owner thereof if the owner pays the expenses and charges of the Bond Registrar and the City in connection therewith and files with the Bond Registrar and the City evidence satisfactory to both that such Bond or Bonds were actually lost, stolen or destroyed and of his or her ownership thereof, and furnishes the City and the Bond Registrar with indemnity satisfactory to both. Section 16. Severability; Ratification. If any one or more of the covenants or agreements provided in this ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements of this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Bonds. All acts taken pursuant to the authority granted in this ordinance but prior to its effective date are hereby ratified and confirmed. Section 17. Payments Due on Holidays. If an interest and/or principal payment date for a series of Bonds is not a business day, then payment shall be made on the next business day and no interest shall accrue for the intervening period. Section 18. Corrections by City Clerk. Upon approval of the City Attorney and Bond Counsel, the City Clerk is hereby authorized to make necessary corrections to this ordinance, including but not limited to the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; ordinance numbering and section/subsection numbering; and other similar necessary corrections. W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs Page 17 of 18 41 Section 19. 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. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2017. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Pacifica Law Group LLP, Bond Counsel Attachments: Exhibit A — Form of Bond Exhibit B — Certificate (by City Clerk) Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing\Ordinances\LTGO Bonds -2018 -PW Shops Facility 11-13-17 PM:bjs 42 Page 18 of 18 Exhibit A Form of Bond [DTC LANGUAGE] [TRANSFER RESTRICTIONS] UNITED STATES OF AMERICA NO. $ STATE OF WASHINGTON CITY OF TUKWILA LIMITED TAX GENERAL OBLIGATION BOND, 2018 INTEREST RATE: % MATURITY DATE REGISTERED OWNER: PRINCIPAL AMOUNT: CUSIP NO. The City of Tukwila, Washington (the "City"), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns, on the Maturity Date identified above, the Principal Amount indicated above and to pay interest thereon from the date of delivery, or the most recent date to which interest has been paid or duly provided for, at the Interest Rate set forth above (the "Interest Rate"). Interest on this bond shall accrue from its dated date until paid and shall be computed per annum on the principal amount outstanding on a 30/360 basis. Principal of and accrued interest on this bond shall be payable on the dates set forth in the payment schedule attached hereto. The City of Tukwila, Washington (the "City"), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns, on the Maturity Date identified above, the Principal Amount indicated above and to pay interest thereon from , 20 , or the most recent date to which interest has been paid or duly provided for until payment of this bond at the Interest Rate set forth above, payable on June 1, 2018, and semiannually thereafter on the first days of each succeeding June and December. Both principal of and interest on this bond are payable in lawful money of the United States of America. The fiscal agent of the State of Washington has been appointed by the City as the authenticating agent, paying agent and registrar for the bonds of this issue (the "Bond Registrar"). For so long as the bonds of this issue are held in fully immobilized form, payments of principal and interest thereon shall be made as provided in accordance with the operational arrangements of The Depository Trust Company ("DTC") referred to in the Blanket Issuer Letter of Representations (the "Letter of Representations") from the City to DTC. A-1 43 The bonds of this issue are issued under and in accordance with the provisions of the Constitution and applicable statutes of the State of Washington and Ordinance No. duly passed by the City Council on , 2017 (the "Bond Ordinance"). Capitalized terms used in this bond have the meanings given such terms in the Bond Ordinance. This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall have been manually signed by or on behalf of the Bond Registrar or its duly designated agent. This bond is one of an authorized issue of bonds of like series, date, tenor, rate of interest and date of maturity, except as to number and amount in the aggregate principal amount of $ and is issued pursuant to the Bond Ordinance to provide a portion of the funds necessary (a) to pay the cost of the acquisition of land and construction of City maintenance and other City facilities and (b) to pay costs of issuance. [insert description of redemption or prepayment terms] The City has [not] designated the Bonds as "qualified tax-exempt obligations" under Section 265(b)(3) of the Code]. The City has irrevocably covenanted with the owner of this bond that it shall include in its annual budget and levy taxes annually, within and a part of the tax levy permitted to the City without a vote of the electorate, upon all the taxable property in the City without limitation as to rate or amount and in amounts sufficient, together with other money legally available therefor, to pay the principal of and interest on this bond when due. The full faith, credit and resources of the City are irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of such principal and interest. The pledge of tax levies for payment of principal of and interest on the bonds may be discharged prior to maturity of the bonds by making provision for the payment thereof on the terms and conditions set forth in the Bond Ordinance. Owners of this bond do not have a security interest in particular revenues or assets of the City. This bond is not a debt or indebtedness of the State of Washington, or any political subdivision thereof other than the City. It is hereby certified that all acts, conditions and things required by the Constitution and statutes of the State of Washington to exist and to have happened, been done and performed precedent to and in the issuance of this bond exist and have happened, been done and performed and that the issuance of this bond and the bonds of this issue does not violate any constitutional, statutory or other limitation upon the amount of bonded indebtedness that the City may incur. A-2 44 IN WITNESS WHEREOF, the City of Tukwila, Washington, has caused this bond to be executed by the manual or facsimile signatures of the Mayor and the City Clerk and the seal of the City to be imprinted, impressed or otherwise reproduced hereon as of this day of , 20 .. [SEAL] ATTEST: Christy O'Flaherty, MMC, City Clerk Date of Authentication: CITY OF TUKWILA, WASHINGTON By Allan Ekberg, Mayor [FOR UNDERWRITTEN BONDS] CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the within -mentioned Bond Ordinance and is one of the Limited Tax General Obligation Bonds, [ 1, of the City of Tukwila, Washington, dated , 2018. A-3 WASHINGTON STATE FISCAL AGENT, as Bond Registrar By 45 [FOR DIRECT PURCHASE BONDS] REGISTRATION CERTIFICATE This bond is registered in the name of the Registered Owner on the books of the City, in the office of the Finance Director of the City (the "Bond Registrar"), as to both principal and interest, as noted in the registration blank below. All payments of principal of and interest on this bond shall be made by the City as provided in the Bond Ordinance. Date of Registration , 2018 Name and Address of g.>" Signature of Bond Registrar Registered Owner t. • Finance Director mf0.r frr. w.?` .rte PAYMENT SCHEDULE Principal and interest on this bond shall be payable as set forth in the following schedule: Date` , r,,'' Principal 46 A-4 Interest Total Payment Exhibit B CERTIFICATE I, the undersigned, City Clerk of the City Council of the City of Tukwila, Washington (the "City"), DO HEREBY CERTIFY: 1. The attached copy of Ordinance No. (the "Ordinance") is a full, true and correct copy of an ordinance duly passed at a regular meeting of the City Council of the City held at the regular meeting place thereof on , 2017 as that ordinance appears in the minute book of the City; and the Ordinance will be in full force and effect five (5) days after its passage and publication as provided by law; and 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of said Ordinance; that all other requirements and proceedings incident to the proper passage of said Ordinance have been fully fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. 3. That Ordinance No. has not been amended, supplemented or rescinded since its passage and is in full force and effect and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this day of , 2017. CITY OF TUKWILA, WASHINGTON Christy O'Flaherty, MMC, City Clerk 47 48 City of Tukwila, Washington Finance Committee Meeting Public Works Shops Building November 21, 2017 PFM Financial 1200 Fifth Avenue Advisors LLC Suite 1220 � Seattle, WA 98101 CO Susan Musselman (360) 445-0238 Duncan Brown (206) 858-5367 pfm Overview 1) Background 2) Proposed LTGO Bonds, 2018 3) General Obligation Debt Capacity 4) Next Steps Appendix: Outstanding Debt and Market Update Background o As part of its public safety facilities plan, the City anticipates construction of a new public works shop • Property parcels may be acquired as soon as January 2018 • Construction is projected to begin in Q3 or Q4 of 2019 ® Anticipated to be financed in two phases: - Phase One of this project includes site acquisition and soft costs through 2018 — estimated to cost approximately $20 million ® Phase Two, beginning in 2019, would include additional soft costs and construction costs through 2021 © The total cost of the project (and amount of Phase Two financing) will be dependent on the final design and scope of the project • The shops facility is anticipated to be used for both general government and utility purposes 01 © PFM 2 LTGO Bond Ordinance ® The City Council is being asked to adopt an ordinance that would authorize the issuance of Limited Tax General Obligation (LTGO) debt within the following parameters: ® Par amount not to exceed $20 million ® Final maturity to be no later than December 1, 2038 (i.e., 20 year term) True Interest Cost not to exceed 4.50% ® Authorizes long-term financing (i.e., bonds) or short-term bank financing, if proceeds are required sooner ® The authority granted to the Designated Representative shall expire one year after the effective date of the Bond Ordinance • If authorized, proceeds of the 2018 LTGO Bonds would be used to certain parcels, including through eminent domain, and construct maintenance and other City facilities ® LTGO Bonds will be secured by the City's full faith and credit and non -voted property taxing authority © PFM 3 U) C U) 0 Proposed LTGO Bonds, 2018 ® The chart below summarizes the proposed long-term bond structure and estimated annual debt service City Shops - Phase 1 ® The bonds would be structured as "interest only" through the construction period (i.e., through 2021) $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 © PFM Estimated Sources and Uses of Funds Par Amount Original Issue Premium Total Sources Project Funds Issuance Costs Total Uses $ 17,325,000 2,917,481 $ 20,242,481 $ 20,003,881 238,600 $ 20,242,481 Estimated 2018 LTGO Bonds Debt Service fl'° 1 9\9 1592 1911 1 0 ' '1,Oti3 `1,0r `1,0 5 15)150 1 .011 0,0, ri,01,C) X030 ti0�1 15)))f Note: Rates as of 11/9/2017 plus 50 basis point cushion Assumes $100,000 Cost of Issuance and $8/Bond Underwriters Discount 19 3 1 ,e6 (14%° 1_65(0 1,05-1 tiO3� 4 Calculation of Debt Capacity ®The table below summarizes the City's non -voted and total general obligation debt capacity, as limited by statute Non -Voted General Obligation Debt Capacity 2016 Assessed Value for 2017 Tax Year Non -Voted Debt Capacity (1.5% of AV) Less: Outstanding Non -Voted Debt Less: 2018 LTGO Bonds (Estimated) $5,763,649,829 86,454,747 (35,376,704) (17,325,000) Remaining Non -Voted Debt Capacity 33,753,043 Total General Obligation Debt Capacity for General Municipal Purposes 2016 Assessed Value for 2017 Tax Year Total Debt Capacity (2.5% of AV) Less: Outstanding Voted Debt Less: Outstanding Non -Voted Debt Less: 2018 LTGO Bonds (Estimated) $5,763,649,829 144,091,246 (32,990,000) (35, 376, 704) (17,325,000) Remaining Total Debt Capacity for General Municipal Purposes 58,399,542 © PFM 5 2018 LTGO Bonds - Next Steps Activity Date Finance Committee Meeting - Consideration of Bond Ordinance (5:30 p.m.) 11/21 Committee of the Whole - Consideration of Bond Ordinance (7:00 p.m.) 11/27 City Council Meeting - Consideration of Bond Ordinance (7:00 p.m.) 12/4 Bond Ordinance Published 12/7 Bond Rating Agency Call Week of 1/8 Bond Sale 1/25 Bond Closing - funds delivered 2/8 01 01 © PFM 6 PFM Financial Advisors LLC 1200 Fifth Avenue I Suite 1220 I Seattle, WA 98101 Susan Musselman, Director (360) 445-0238 I musselmans@pfm.com Duncan Brown, Senior Managing Consultant (206) 858-5367 I brownd@pfm.com Alex Injev, Analyst (213) 415-1640 I injeva@pfm.com pfm Appendix: Outstanding Debt and Market Update Outstanding Limited Tax General Obligation Debt • As of October 2017, the City has $35,376,704 of non -voted general obligation debt and $32,990,000 of voted general obligation debt outstanding $6 2 $5 $4 Annual Non -Voted General Obligation Debt Service • _■■ $3 —■ ■ ■ � ■■ _■■ ■ 111111■■■■ 1111II $0 IIIuuiiiIIIUUIIIII . ........ ■ I ■ ■ ■ iI1ii N NNNN^OjMMM^'�'MM^NOOr� O OOOOOOOOOO N N N N N N N N N N N N N N N • LTGO Bonds, 2017 • LTGO Bonds, 2015 • LTGO Bond, 2017 (Taxable) • SCORE 2009B (BABs) • SCORE 2009A o LTGO Bond, 2014 (Taxable) • LTGO Bond, 2013 • LTGO Refunding Bonds, 2011 • LTGO Bonds, 2010B (BABs) • LTGO Ref Bonds, 2008 © PFM 9 Outstanding Long -Term General Obligation Debt Series Name LTGO Refunding Bonds, 2008 Outstanding Par $2,165,000 Call Date n/a Purpose Advance refund LTGO Bonds, 1999 Coupon Range 6.00% Final Maturity 12/1/2019 Insurer Assured Guaranty LTGO Bonds, 2010B (Taxable BABs — Direct Payment) 3,575,000 6/1/2020 Acquisition & construction of Southcenter Parkway improvements; emergency preparedness facilities, fixtures, tech. 3.96 — 5.41%* 12/1/2024 n/a LTGO Refunding Bonds, 2011 3,360,000 12/1/2021 Advance refund LTGO Bonds, 2003A 3.00 — 4.00% 12/1/2023 n/a LTGO Bond, 2013 562,104 n/a Park district facility improvements (pool) 3.00-4.00% 12/1/2022 n/a LTGO Bond, 2014 (Taxable) 3,560,000 12/1/2019 Tukwila International Boulevard — property acquisition 0.85 — 4.86%** 12/1/1934 n/a LTGO Bonds, 2015 5,605,000 6/1/2025 Pay and reimburse the City for the cost of certain road construction and related improvements 2.25 — 3.00% 12/1/2035 n/a LTGO Bonds, 2017 8,180,000 6/1/2027 Pay or reimburse the City for the cost of certain road construction and related improvements 3.00 — 3.50% 12/1/2037 n/a LTGO Bond, 2017 (Taxable) 2,276,000 anytime Tukwila International Boulevard — property acquisition 2.60 - 3.00% 12/1/2022 n/a Subtotal $29,283,104 SCORE Bonds, 2009A 220,400 1/1/2020 SCORE Facility 4.50 — 5.00% 1/1/2022 n/a SCORE Bonds, 2009B (Taxable BABs- Direct Payment) 5,873,200 1/1/2020 5.00 — 6.616%* 1/1/2039 n/a Subtotal 6,093,600 Total — LTGO $35,376,704 UTGO Bonds, 2016 32,990,000 12/1/2026 Pay and reimburse the City for the cost of constructing fire stations and acquiring related firefighting apparatus/equipment, constructing a justice center 4.50 — 5.00% 12/1/2036 n/a Subtotal $32,990,000 Total — General Obligations $68,366,704 © PFM As of November 10, 2017. * Build America Bonds coupons are shown as gross rates, not reflecting Federal subsidy (35% prior to sequestration). ** A portion of the 2014 Bonds will have interest rates reset every five years, based on the Five Year Advance Fixed Bullet Rate, as publishel0 by the Seattle Federal Home Loan Bank. Market Update 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% Municipal Market Data (MMD) "AA" GO Yield Curve 2016 Bonds (11/30/2016) 3 Years Ago (10/6/2014) Current (11/10/2017) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Current (11/10/2017) 2016 Bonds (11/30/2016) - 2015 Bonds (4/28/2015) Bond Buyer 20 -Bond GO Index vs. 30 -Year Treasury Last Three Years 2015 Bonds (4/28/2015) 3 Years Ago r�0 ,LO 1' ,LO ,LO ,y0 ,LO ,LO ,LO rL0 ,LO ,LO ,LO ,LO ,LO Few .44 �aA pyo' �o� «a) 4a� ,c, -`)q °, �a0 �aJ PJB °,' �a� �a� ,,- 20 -Bond 20 -Bond GO Index 30 -Year Treasury © PFM 11 Market Update - Interest Rate Forecasts .Most market participants expect interest rates to rise modestly through the end of 2017 and 2018 .The chart below shows consensus forecasts from numerous financial institutions Quarterly Historical and Forecasted Interest Rates 3.50% 3.00% Historical Projected 1.50% 1.00% 0.50% 0.00% © PFM Q1 16 Q2 16 Q3 16 Q4 16 Q117 Q2 17 Q3 17 Q4 17 Q118 Q2 18 Q3 18 Q4 18 End of Quarter —.—Federal Funds Rate (Upper Bound) = = 3 -Month Libor 2 -Year US Treasury Note --10-Year US Treasury Bond Source: Bloomberg, Composite UST forecast represents at least 50 banks. 12 62 Finance Committee Minutes November21, 2017 C. Ordinance: Financing Public Safety Plan Public Works Shops Facility Staff is seeking Council approval of an ordinance to authorize issuance of one or more series of *limited tax obligation (LTGO) bonds in the aggregate principal amount not to exceed $20,000,000 to finance the acquisition of land and construction of the Public Works shops facility included in the Public Safety Plan. The Council authorized the acquisition of parcels to site the facility on November 6, 2017. Because the amount and timing of funds needed has a degree of certainty, this ordinance was prepared for adoption now so that the City would have the financing tools in place. In addition, it was prepared to include the greatest level of flexibility, including the option for short-term financing. Staff distributed a new info memo that corrects an error and shows that the debt service will be under what was budgeted by about half. The ordinance will be valid for one year. Chair Seal asked about how the Council would be kept informed or provide necessary approvals throughout the whole purchase process, as some may be concerned this ordinance would serve as a blank check. Ms. Gregory pointed out that on page 54, Section 12(3)(4) the ordinance provides that the Council must receive a report describing the final terms of the Bonds sold pursuant to the Sale document. The Council would also remain closely involved through consideration and potential approval of the purchase and sale agreement for the property. The disclosure document could also be provided to the Council as the transaction proceeds. The Committee expressed support for the ordinance being in place and providing flexibility for future financing decisions. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. D. Commercial Parking Tax Legislation Staff is seeking Council approval of an ordinance to amend Tukwila Municipal Code 3.48 to increase the commercial parking tax from 5% to 15% and impose a late penalty of 10% per month. The commercial parking tax was established in 1998 and has not been updated since then. An increase to 15% will make the rate comparable to tax rates in surrounding jurisdictions. There are currently nine parking facilities in Tukwila that charge customers and are therefore subject to this tax. Parking tax revenues are restricted to transportation projects. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. E. Resolution: Equity Policy Staff is seeking Council approval of a resolution that would adopt an equity policy for the City. The policy was written by an ad hoc employee committee, then further refined and approved by the Equity and Social Justice Commission. Since the Committee was last briefed, staff presented the draft to other staff in all departments. As a result of that, "gender identity" was added to the list of individuals and groups deserving of equity in Section 1. In section IV.5, "contractors" was added to the list of groups who will receive an equity toolkit from the City. The Equity and Social Justice Commission approved these two changes as well. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. There was consensus to consider the ESRI Enterprise License Agreement as the next order of business. F. Enterprise License Agreement: GIS Mapping Software Staff is seeking Council approval of a two-year agreement with Environmental Systems Research Institute, Inc. (ESRI) in the amount not to exceed $55,000 for a GIS enterprise license. Currently there is one staff member assigned to GIS and this licensing agreement will provide 63 64 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by or's review Council review 11/27/17 RB !�' DLR 12/04/17 RB ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Altg Date CATEGORY /1 Discussion /1 Ordinance Mtg Date Mtg Date 12/04/17 SPONSOR ❑Council HR DCD ❑.Finance Fire TS ❑P&R Police PIV ❑Court ►4Mayor ITEM INFORMATION ITEM No. 4.C. 65 S'T'AFF SPONSOR: RACHEL BIANCHI ORIGINAL AGENDA DATE: 11/27/17 AGENDA ITEM TITLE An ordinance amending the Tukwila funds for the Public Safety Plan. Municipal Code to allow the allocation of REET 1 11/27/17 ❑ Motion Mtg Date ❑ Resolution Mfg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Altg Date CATEGORY /1 Discussion /1 Ordinance Mtg Date Mtg Date 12/04/17 SPONSOR ❑Council HR DCD ❑.Finance Fire TS ❑P&R Police PIV ❑Court ►4Mayor SPONSOR'S The Council is being asked to adopt the proposed ordinance amending the City's Code SUMMARY regarding allocaton of REET 1 funds. REVIEWED BY ❑ C.O.W. Mtg. ❑ Trans &Infrastructure DATE: 11/13/17 /1 CDN Comm ❑ Finance Comm. ❑ Public Safety Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: HOUGARDY ❑ Arts Comm. RECOMMENDATIONS: SPONSOR/ADMIN. COMMITThE Mayor's Office Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPF:NDITURL REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/17 MTG. DATE ATTACHMENTS 11/27/17 Informational Memorandum dated 11/6/17 Ordinance Minutes from the CDN Committee of 11/13/17 12/4/17 65 66 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods Committee FROM: Rachel Bianchi CC: Mayor Ekberg DATE: November 6, 2017 SUBJECT: Modifications to City's Real Estate Excise Tax 1 Allocation ISSUE The Tukwila Municipal Code currently restricts Real Estate Excise Tax (REET) 1 funds allocation to the Land Acquisition, Rec and Park Development Fund 301. Staff would like to amend the code to include Public Safety Plan land acquisition. BACKGROUND Washington State law allows cities and other jurisdictions collecting REET 1 to spend these funds on capital projects, defined in RCW 82.46.010 as: "those public works projects of a local government for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets; roads; highways; sidewalks; street and road lighting systems; traffic signals; bridges; domestic water systems; storm and sanitary sewer systems; parks; recreational facilities; law enforcement facilities; fire protection facilities; trails; libraries; administrative facilities, judicial facilities, river flood control projects..." In 2015, the state legislature amended the law to also allow jurisdictions to use REET 1 funds for maintenance of capital projects. Jurisdictions may use the greater of $100,000 or 25% of available funds, but not to exceed $1 million per year for such activities. In 1996, the City restricted the allocation of REET 1 funding solely land acquisition and park development. Since 2014, REET has come in more than double the amount budgeted. This year is continuing this trend, with REET 1 receiving $873,000 to date with $400,000 budgeted Due to REET accumulation at an unexpected rate, the Land Acquisition, Rec and Park Development Fund 301 has in excess of $3.5 million available today. As the City works to implement the Public Safety Plan, and with the realities of cost escalation in this heated development market, the City could choose to use REET 1 funds to develop the City's Public Safety facilities. By doing so, the City has additional funding sources to achieve our Public Safety Plan goals. The attached ordinance amends the Tukwila Municipal Code to include the Public Safety Plan Fund (305), which includes the Justice Center and three fire stations and the City Facilities Fund, which covers the combined City Shops facility. RECOMMENDATION Staff recommends that the Council pass the attached ordinance amending the Tukwila Municipal Code to include the ability to allocate REET 1 funds to the Public Safety Plan. Staff does not recommend using REET 1 for any maintenance needs. ATTACHMENTS Draft ordinance 67 68 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 1674; AMENDING ORDINANCE NO. 1400 §4, AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 3.56.040, TO UPDATE REGULATIONS REGARDING DISTRIBUTION OF REAL ESTATE EXCISE TAX; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila imposes an excise tax on each sale of real property within the City limits at a rate of one-quarter (1/4) of one percent of the selling price pursuant to Chapters 82.45 and 82.46 RCW and WAC Chapter 458-61A; and WHEREAS, per RCW 82.46.010, cities may use REET1 on capital projects specified in the Capital Facilities Plan Element of their Comprehensive Plan; and WHEREAS, the City has identified additional funding requirements relating to the Public Safety Plan projects; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 3.56.040 Amended. Ordinance No. 1400 §4, as codified at Tukwila Municipal Code Section 3.56.040, "Distribution of Tax Proceeds and Limiting the Use Thereof," is hereby amended to read as follows: 3.56.040 Distribution of Tax Proceeds and Limiting the Use Thereof A. The County treasurer shall place 1% of the proceeds of the taxes imposed in this chapter in the County current expense fund to defray costs of collection. B. The remaining proceeds from City taxes imposed herein shall be distributed to the City on a monthly basis, and shall be placed by the Finance Director in the Land Acquisition, Recreation and Park Development Fund (301); the Public Safety Plan Fund (305); or the City Facilities Fund (306), for use in conjunction with any project within this these funds. W: Word Processing\REET-Distribution of funds 11-7-17 LH:bjs Page 1 of 2 69 C. This section shall not limit the existing authority of this City to impose special assessments on property benefited thereby in the manner prescribed by law. D. The City Council shall review the distribution of the tax proceeds three years from the date of the passage of this chapter. Section 2. Repealer. Ordinance No. 1674 is hereby repealed. Section 3. 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 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. 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. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2017. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney W: Word Processing\REET-Distribution of funds 11-7-17 LH:bjs 70 Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2 City of Tukwila City Council Community Development & Neighborhoods Committee COMMUNITY DEVELOPMENT & NEIGHBORHOODS COMMITTEE Meeting Minutes November 13, 2017 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Kathy Hougardy, Chair, Verna Seal, Kate Kruller Staff: David Cline, Nora Gierloff, Rick Still, Stacy Hansen, Rachel Bianchi, Jay Wittwer, Laurel Humphrey Guest: Carrie Holmes, Sheils Obletz Johnsen CALL TO ORDER: Chair Hougardy called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Resolution: 2017 Legislative Agenda Staff is seeking Council approval of a resolution that would adopt a legislative agenda for use during the 2018 Washington State Legislative Session. The agenda includes items in the categories of Transportation & Infrastructure, Housing & Human Services, Shared Revenue, Revenue Reform, Streamlined Sales Tax Mitigation, Education, Law Enforcement, and Lodging Tax Flexibility. The City's state lobbyist, Jennifer Ziegler, will attend the November 20 Council meeting to present a legislative session preview. The draft agenda was also reviewed by the Public Safety Committee. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13, 2017 COMMITTEE OF THE WHOLE. B. Ordinance: Real Estate Excise Funds Staff is seeking Council approval of an ordinance that would amend Tukwila Municipal Code 3.56.050 to include the Public Safety Plan and City Facilities Funds as possibilities for distribution of Real Estate Excise Tax (REET1) collections. State law allows cities to spend REET 1 funds on capital projects, and staff recommends incorporating this flexibility into the code to provide an additional funding source to achieve the goals of the Public Safety Plan considering the realities of market cost escalation. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. C. Update on Fire Station 51 Design Staff presented the Committee with the initial drawings of the design of Fire Station 51 as a preview before the public Open House on December 2, 10:00 a.m. -12 noon at Valley View Sewer District building. The architects are currently finishing up schematic design of the building and will next work with an estimator to price out the design. The design is in alignment with the program direction received from the Council earlier this year, including covered parking/storage areas that could meet the needs of future expansion. Committee members expressed concern about the limited public parking. Because this design does not fully 71 72 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/27/17 MN AY_ LR 12/04/17 MN ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date /1 Resolution Mtg Date 12/04/17 SPONSOR ❑Council ❑FIR ❑DCD Finance Fire TS ❑P&R Police ❑PIF ❑Court ►1 Mayor SPONSOR'S The City of Tukwila has a strong commitment to equity in city government. To that end, the SUMMARY Mayor's Office has initiated the development of a City Equity Policy. The Finance Committee and Council were informed of this policy in August/September, the process used to develop it, and were given the opportunity to provide comment. Since then, City employees have had an opportunity to provide feedback. At this time, staff is presenting minor edits to the policy, and a resolution approving it. RI XI I IWRD BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Trans &Infrastructure ❑ Arts Comm. DATE: 11/21/17 ITEM INFORMATION ITEM No. 4.D. 73 STAFF SPONSOR: MIA NAVARRO ORIGIN;vI. AGFND1vDATE: 11/27/17 AGENDA ITE TITLE Resolution to appove the City of Tukwila Equity Policy CA"l'1?GORY /1 Discussion Mtg Date 11/27/17 ❑ Motion 114tg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date /1 Resolution Mtg Date 12/04/17 SPONSOR ❑Council ❑FIR ❑DCD Finance Fire TS ❑P&R Police ❑PIF ❑Court ►1 Mayor SPONSOR'S The City of Tukwila has a strong commitment to equity in city government. To that end, the SUMMARY Mayor's Office has initiated the development of a City Equity Policy. The Finance Committee and Council were informed of this policy in August/September, the process used to develop it, and were given the opportunity to provide comment. Since then, City employees have had an opportunity to provide feedback. At this time, staff is presenting minor edits to the policy, and a resolution approving it. RI XI I IWRD BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Trans &Infrastructure ❑ Arts Comm. DATE: 11/21/17 iI Finance Comm. ❑ Public Safety Comm. Comm. ❑ Planning Comm. CHAIR: SEAL ❑ Parks COMMITTEE RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Mayor's office Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDFI'URII REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION MTG. DATE ATTACHMENTS 11/27/17 Informational Memorandum dated 11/13/17 Equity Policy Resolution Equity Policy Minutes from the Finance Committee meeting of 11/21/17 12/04/17 73 74 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Mia Navarro, Community Engagement Manager CC: Mayor Ekberg DATE: 11-13-2017 SUBJECT: Equity Policy Resolution ISSUE The City of Tukwila has a strong commitment to equity in City government, and they desire that all residents, visitors and employees have the opportunity to reach their full potential. To that end, the Mayor's Office has initiated the development of a DRAFT City Equity Policy to guide the work of City employees. BACKGROUND Early in 2016, the Equity and Social Justice Commission researched the equity policies and equity work of other jurisdictions, and came up with a list of components for a draft equity policy for the City of Tukwila. Community Engagement Manger, Mia Navarro, convened an ad hoc Equity Policy Committee made up of City employees to do more research, and turn those components into a draft equity policy. Representatives from almost every department attended at least one meeting during the several month-long process. In August, staff presented the draft policy to Council and got feedback. Staff then presented the policy to staff in all City departments during regularly scheduled staff meetings, as well as specially scheduled meetings. As a result, some minor edits have been made to the policy. The Equity and Social Justice Commission has approved these edits. Staff is now seeking passage of a resolution approving the City Equity Policy. Once the resolution is passed, the implementation and evaluation team will convene to begin planning for implementation. FINANCIAL IMPACT There is no financial impact at this time. The financial impact will be determined during the implementation planning phase. RECOMMENDATION The Council is being asked to approve the resolution and consider this item at the November 27, 2017 Committee of the Whole meeting and subsequent December 4, 2017 Regular Meeting. ATTACHMENTS Equity Policy Resolution Equity Policy 11-02-2017 75 76 D A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A CITY EQUITY POLICY. WHEREAS, the City Council recognizes the great value of diversity of culture, background, race, language, ability, gender, and other factors; and WHEREAS, the City Council recognizes that societal, environmental, and legal factors, both historic and present day, have resulted in inequitable access to opportunities and services for some individuals and groups of people; and WHEREAS, the City Council is committed to ensuring fair and equitable access to City services, employment and other core functions; and WHEREAS, an equity policy provides guidance to the community, staff and elected officials as to how we work together towards economic, civic and social justice; and WHEREAS, the City Council agreed to these priorities at the City Council Meeting on December 4, 2017; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: The Tukwila City Council has identified the need for an equity policy to continue the City of Tukwila's commitment to being an inclusive community that provides equal access to all City services. The City of Tukwila Equity Policy, attached hereto as Attachment A, is hereby adopted. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2017. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Dennis Robertson, Council President APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Attachment A. City of Tukwila Equity Policy W:\Word Processing\Resolutions\Equity Policy adopted 11-13-17 MN:bjs Filed with the City Clerk: Passed by the City Council: Resolution Number: Page 1 of 1 77 78 CITY OF TUKWILA EQUITY POLICY 2017 I. BACKGROUND AND OVERVIEW The Mayor, Council, and staff of the City of Tukwila have a strong commitment to equity in city government, and they desire that all residents, visitors and employees have the opportunity to reach their full potential. Societal, environmental and legal factors, both historic and present-day, have resulted in inequitable access to opportunities and services for some individuals and groups of people. These include but are not limited to: • Age • Physical and/or Cognitive Disability • Economic Status • Gender • Gender Identity • National Origin/Language • Race and/or Ethnicity • Religion • Sexual Orientation The City of Tukwila values its rich diversity. The majority of people who live in Tukwila are people of color, and 40% were born in a country other than the United States. More than 80 languages are spoken in our schools, and 50% of Tukwila households speak a language other than English at home. We benefit from friends and neighbors with different perspectives and cultures, the variety of businesses owned by immigrants and refugees, and the community forged when we share foods from around the world. While we celebrate Tukwila, we recognize that many in our community do not have equitable access to services, government, education, employment and other opportunities toward a better future. More than 20% of our population does not have health insurance, and Tukwila's median household income is 40% of King County's. 23% of Tukwila households live below the poverty line, and more than 10% of students in the Tukwila School District currently experience homelessness. We recognize the role that government can play in breaking down barriers to equitable access to opportunities. The City's Strategic Plan, adopted in 2012, provides us the guideposts for our work on behalf of our residents, businesses and guests, and emphasizes partnerships and collaboration. One of the goals -- A Solid Foundation for All Tukwila Residents -- clearly calls for equitable access to opportunity for Tukwila residents and serves as the foundation of this equity policy. Page 1 of 3 79 Though we fully acknowledge we have more work to do, the City has made many strides toward equity. We are proud of our successes and, in some cases, our leadership around identifying and implementing policies and programs to promote equity. We also realize that we as a city government have a much longer journey to take in our efforts to be truly equitable in the delivery of all City services. II. PURPOSE The purpose of this policy is to provide guidance to City elected officials, staff, boards and commissions, partners, residents, businesses and guests on how the City of Tukwila will actively promote equitable access to opportunities and services. III. DEFINITION OF EQUITY Equity: Eliminating systemic barriers and providing fair access to programs, services and opportunities to achieve social, civic and economic justice within the City of Tukwila. IV. POLICY GOALS In order to achieve equitable access to opportunities and services in the City of Tukwila, the City adopts the following goals. 1. Our City workforce reflects our community. The City will identify strategies around recruitment and hiring, and personnel policies that provide equitable opportunities for existing employees, and support City's long-term goal that its workforce reflect the evolving make-up of the community. 2. Community outreach and engagement is relevant, intentional, inclusive, consistent and ongoing. The City often has important information to share with the community, and often seeks dialogue with the community. The City will create a community outreach and engagement toolkit to enable inclusive public engagement that all departments will use when seeking community participation. 3. All residents and visitors receive equitable delivery of City services. The City will identify strategies that facilitate equitable access to current and future City services and facilities, regardless of race/ethnicity, language, ability, gender, age, family status, geography, and mode of transportation. 4. City government is committed to equity in the decision-making process. The City will identify strategies to facilitate equitable access to decision-making, where the decisions themselves -- and the process and context in which they are made -- are transparent. Page 2 of 3 80 5. Equity serves as a core value for all long-term plans moving forward. The City will develop and implement an equity toolkit for City staff, consultants, contractors, and partners that will provide guidance for the equitable physical development of the city, and other activities. This goal applies to plans such as but not limited to the Comprehensive Plan, transportation, infrastructure, strategic plans, etc. 6. The City will build capacity around equity within City government and the broader community. The City will resource this policy through activities such as but not limited to regular trainings and workshops, both internal and public, and establishing an Equity Policy Implementation Committee. V. IMPLEMENTATION The City will be accountable for assessing a baseline, developing an implementation plan, and reporting measurable progress in meeting each of these goals. 1. Equity Policy Implementation and Evaluation Committee The City will establish a committee that will be responsible for setting baselines, developing the implementation plan, and reporting measurable progress in meeting the goals of this policy. The implementation plan should specify staff leads responsible for key elements of the work, and include how the work will be distributed throughout the agency. 2. Equity and Social Justice Commission The Equity and Social Justice Commission will monitor the work of the Implementation and Evaluation Committee, and provide information to the committee, as well as the Council as to the progress of the policy's implementation. 3. Timeline The timeline for developing the implementation plan is one year from the adoption of this policy. Page 3 of 3 81 82 Finance Committee Minutes November21, 2017 C. Ordinance: Financing Public Safety Plan Public Works Shops Facility Staff is seeking Council approval of an ordinance to authorize issuance of one or more series of limited tax obligation (LTGO) bonds in the aggregate principal amount not to exceed $20,000,000 to finance the acquisition of land and construction of the Public Works shops facility included in the Public Safety Plan. The Council authorized the acquisition of parcels to site the facility on November 6, 2017. Because the amount and timing of funds needed has a degree of certainty, this ordinance was prepared for adoption now so that the City would have the financing tools in place. In addition, it was prepared to include the greatest level of flexibility, including the option for short-term financing. Staff distributed a new info memo that corrects an error and shows that the debt service will be under what was budgeted by about half. The ordinance will be valid for one year. Chair Seal asked about how the Council would be kept informed or provide necessary approvals throughout the whole purchase process, as some may be concerned this ordinance would serve as a blank check. Ms. Gregory pointed out that on page 54, Section 12(3)(4) the ordinance provides that the Council must receive a report describing the final terms of the Bonds sold pursuant to the Sale document. The Council would also remain closely involved through consideration and potential approval of the purchase and sale agreement for the property. The disclosure document could also be provided to the Council as the transaction proceeds. The Committee expressed support for the ordinance being in place and providing flexibility for future financing decisions. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. D. Commercial Parking Tax Legislation Staff is seeking Council approval of an ordinance to amend Tukwila Municipal Code 3.48 to increase the commercial parking tax from 5% to 15% and impose a late penalty of 10% per month. The commercial parking tax was established in 1998 and has not been updated since then. An increase to 15% will make the rate comparable to tax rates in surrounding jurisdictions. There are currently nine parking facilities in Tukwila that charge customers and are therefore subject to this tax. Parking tax revenues are restricted to transportation projects. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. E. Resolution: Equity Policy Staff is seeking Council approval of a resolution that would adopt an equity policy for the City. The policy was written by an ad hoc employee committee, then further refined and approved by the Equity and Social Justice Commission. Since the Committee was last briefed, staff presented the draft to other staff in all departments. As a result of that, "gender identity" was added to the list of individuals and groups deserving of equity in Section 1. In section IV.5, "contractors" was added to the list of groups who will receive an equity toolkit from the City. The Equity and Social Justice Commission approved these two changes as well. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. There was consensus to consider the ESRI Enterprise License Agreement as the next order of business. F. Enterprise License Agreement: GIS Mapping Software Staff is seeking Council approval of a two-year agreement with Environmental Systems Research Institute, Inc. (ESRI) in the amount not to exceed $55,000 for a GIS enterprise license. Currently there is one staff member assigned to GIS and this licensing agreement will provide 83 84 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mgy)ors review Council review 11/27/17 ED i,/(si --,R 12/04/17 ED ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date CATEGORY/ 1 Discwssion i1 Ordinance Mtg Date Mtg Date 12/4/17 SPONSOR Council ❑Mayor ❑HR ❑DCD ❑Finance ❑Fire ❑TS P&'R ►1 Police ❑PW ❑Court SPONSOR'S Vehicle thefts and prowls have been increasing in King County. Due to the volume of these SUMMARY types of cases, it is becoming increasingly challenging for King County to prosecute these offenders. Despite the Tukwila Police Department's efforts to bring these offenders to justice, an increasing number of offenders are not prosecuted. Adopting Vehicle Trespass as a misdemeanor would allow the Tukwila City Attorney's Office to more effectively prosecute these offenders in the Tukwila Municipal Court. ITEM INFORMATION ITEM No. 4.E. 85 STAFF SPONSOR: COMMANDER ERIC DREVER ORE 1N.\I. AGENDA DATE: 11/27/17 AGENDA ITEM TITLE Vehicle Trespass Ordinance 11/27/17 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date CATEGORY/ 1 Discwssion i1 Ordinance Mtg Date Mtg Date 12/4/17 SPONSOR Council ❑Mayor ❑HR ❑DCD ❑Finance ❑Fire ❑TS P&'R ►1 Police ❑PW ❑Court SPONSOR'S Vehicle thefts and prowls have been increasing in King County. Due to the volume of these SUMMARY types of cases, it is becoming increasingly challenging for King County to prosecute these offenders. Despite the Tukwila Police Department's efforts to bring these offenders to justice, an increasing number of offenders are not prosecuted. Adopting Vehicle Trespass as a misdemeanor would allow the Tukwila City Attorney's Office to more effectively prosecute these offenders in the Tukwila Municipal Court. REVIEWED BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Finance Comm. ❑ Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. DALE: 11/20/17 COMMII"I'hE CHAIR: MCLEOD /1 Public Safety Comm. ❑ Planning Comm. RECOMMENDATIONS: SPONsoR/ADMIN. COMMII'T'EE TukwilaPolice Department Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0 $0 $0 Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/17 MTG. DATE ATTACHMENTS 11/27/17 Informational Memorandum dated 11/14/17 Proposed Vehicle Trespass Ordinance Minutes from the Public Safety Committee meeting of 11/20/17 12/4/17 85 86 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Public Safety Committee FROM: Bruce Linton, Chief of Police BY: Eric Dreyer, Commander CC: Mayor Ekberg DATE: November 14, 2017 SUBJECT: Vehicle Trespass Ordinance ISSUE The King County Prosecutor's Office is not always able to file charges of felony auto theft. A Vehicle Trespass ordinance for the City of Tukwila will provide the police, prosecutor, and municipal court with a tool to hold criminals accountable. BACKGROUND Vehicle thefts and prowls have recently been increasing in King County. Due to the volume of these types of cases, it is becoming increasingly challenging for King County to prosecute these offenders. Despite the Tukwila Police Department's considerable efforts to bring these offenders to justice, an increasing number of offenders are not prosecuted and not punished adequately. Adopting Vehicle Trespass as a misdemeanor would allow the Tukwila City Attorney's Office to more effectively prosecute these offenders in the Tukwila Municipal Court. DISCUSSION The Cities of Kent, Auburn, and Renton all have a vehicle trespass ordinance. They are charging people with vehicle trespassing when there is not quite enough for the King County Prosecutor's Office to charge auto theft. These other municipalities are now seeing the positive impacts of enforcing this ordinance. FINANCIAL IMPACT The financial impact of enforcing a vehicle trespass ordinance, is the jail and court costs associated with potential citations. RECOMMENDATION The Council is being asked to approve the Vehicle Trespass Ordinance and consider this item at the November 27 Committee of the Whole and then forwarded to the December 4 Regular Meeting Consent Agenda. ATTACHMENTS Proposed Vehicle Trespass Ordinance 87 88 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A NEW CHAPTER OF THE TUKWILA MUNICIPAL CODE RELATED TO VEHICLE TRESPASS, TO BE CODIFIED AS TUKWILA MUNICIPAL CODE CHAPTER 8.26; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, vehicle thefts and prowls have recently been increasing in King County; and WHEREAS, due to the volume of these types of cases, it is becoming increasingly challenging for King County to prosecute these offenders; and WHEREAS, despite the Tukwila Police Department's considerable efforts to bring these offenders to justice, an increasing number of them are not prosecuted and not punished adequately; and WHEREAS, adopting vehicle trespass as a misdemeanor would allow the Tukwila City Attorney's Office to more effectively prosecute these offenders in the Tukwila Municipal Court; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Chapter 8.26 of the Tukwila Municipal Code Established. A chapter of the Tukwila Municipal Code entitled "Vehicle Trespass," to be codified as Tukwila Municipal Code (TMC) Chapter 8.26, is hereby established to read as follows: CHAPTER 8.26 VEHICLE TRESPASS Sections: 8.26.010 Vehicle Trespass Prohibited 8.26.020 Definitions 8.26.030 Penalty W: Word Processing\Ordinances\Vehicle trespass 6-1-17 RBT:bjs Page 1 of 3 89 Section 2. Regulations Established. TMC Section 8.26.010, "Vehicle Trespass Prohibited," is hereby established to read as follows: 8.26.010 Vehicle Trespass Prohibited A person is guilty of vehicle trespass if he or she knowingly enters, attempts to enter, or remains unlawfully in a vehicle belonging to another. Section 3. Regulations Established. TMC Section 8.26.020, "Definitions," is hereby established to read as follows: 8.26.020 Definitions A. The word "enter" shall include the entrance of the person, or the insertion of any part of his or her body, or any instrument or weapon held in his or her hand. B. A person enters, attempts to enter or remains unlawfully in or upon a vehicle when he or she is not licensed, invited, or otherwise privileged to so enter or remain. Section 4. Regulations Established. TMC Section 8.26.030, "Penalty," is hereby established to read as follows: 8.26.030 Penalty Vehicle trespass is a misdemeanor, punishable by a fine not to exceed $1,000.00, or by imprisonment in jail for a term not exceeding 90 days, or by both such fine and imprisonment. Section 5. 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 6. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 7. 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. W: Word Processing\Ordinances\Vehicle trespass 6-1-17 RBT:bjs 90 Page 2 of 3 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2017. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Allan Ekberg, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Rachel B. Turpin, City Attorney Ordinance Number: W: Word Processing\Ordinances\Vehicle trespass 6-1-17 RBT:bjs Page 3 of 3 91 92 City of Tukwila City Council Public Safety Committee PUBLIC SAFETY COMMITTEE Meeting Minutes November 20, 2017 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Thomas McLeod, Chair; Joe Duffie, De'Sean Quinn Staff: David Cline, Bruce Linton, Eric Dreyer, Rachel Bianchi, Derek Speck, Jay Wittwer, Laurel Humphrey Guests: D.J. Baxter & Carrie Holmes, Shiels Obletz Johnsen; Steve Goldblatt, PSP Program Management Quality Assurance consultant; Natalie and Monique Hunter, residents .4r CALL TO ORDER: Committee Chair McLeod called the meeting to order at 5:30 p.m. I. ANNOUNCEMENT II. BUSINESS AGENDA A. Ordinance: Establishing a New Chapter of the Municipal Code relating to Vehicle Trespass Staff is seeking Council approval of an ordinance that would establish Chapter 8.26 in the *Tukwila Municipal Code to prohibit vehicle trespass and classify it as a misdemeanor. Vehicle trespass is defined as knowingly entering, or attempting to enter, or remaining unlawfully in a vehicle that belongs to another person. Because the Prosecutor's office is not always able to file charges of felony auto theft, this will provide the police, prosecutor and court with an additional tool to hold criminals accountable. Vehicle prowls and thefts continue to be problematic in King County and Kent, Auburn and Renton have seen positive impacts of enforcing this type of ordinance. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. B. Public Safety Facilities Business Assistance Plan Staff updated the Committee on current and potential efforts to assist businesses that will be dislocated to build the Justice Center and City shops. Based upon the direction given by the Council at the November 6, 2017 meeting, staff is already reaching out to licensed businesses in an effort to get more information and understand their needs. They intend to meet with all 24 individually by the end of the year as well as host a combined meeting specifically for the businesses on the Justice Center site. Future possibilities for assistance include property searches, Small Business Development Center counseling, financial assistance, lease -backs, and facilitating introductions to developers and property owners. There are several potential development opportunities along TIB that could include commercial space. Staff will continue to research possibilities and present a proposed business assistance plan to the Council in January 2018. Councilmember Duffie asked for an opinion on the propriety of staff meeting with businesses, and staff will follow up with the City Attorney. Councilmember Quinn stated 93 94 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayors review Council review 11/27/17 SB �° C \D LR 12/4/17 SB ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date Mtg Date Mtg Mtg Date SPONSOR ❑Council Mayor 11 HR ❑DCD Finance ❑.Fire ❑TS P&R Police ❑PIF ❑Court SPONSOR'S City staff, our labor relations consulltant and the Teamsters Local Union No. 763 SUMMARY representatives opened labor negotiations on November 18, 2016, in an effort to reach agreement on successor contracts. A tentative agreement has been reached and information is being presented for City Council approval and to authorize the Mayor to sign the Collective Bargaining Agreements for the Maintenance Trades, Professional Supervisory and Senior Program Managers (CBA) for 2017-2018. RI•:\'IIAx'I:D BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Finance Comm. ❑ Public Safety Comm. ❑ Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: N/A COMMITTEE CHAIR: RECOMMENDATIONS: SPONsoR/ADMIN. COMMIT ITEM INFORMATION ITEM No. 4.F. 95 STAFF SPONSOR: STEPHANIE BROWN ORIGINAL AGENDA DATE: 11/27/17 AGENDA ITEM TITLE Authorize the Mayor to sign the Collective Bargaining Agreements (CBA) with the Teamsters Local Union No. 763 representing the Maintenance Trades, Professional Supervisory and Senior Program Managers for 2017-2018. CATI:GORY /1 Discussion 11/27/17 // Motion Date 12/4/17 ❑ Resolution Mtg Date ►1 Ordinance ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date Mtg Date Mtg Mtg Date SPONSOR ❑Council Mayor 11 HR ❑DCD Finance ❑.Fire ❑TS P&R Police ❑PIF ❑Court SPONSOR'S City staff, our labor relations consulltant and the Teamsters Local Union No. 763 SUMMARY representatives opened labor negotiations on November 18, 2016, in an effort to reach agreement on successor contracts. A tentative agreement has been reached and information is being presented for City Council approval and to authorize the Mayor to sign the Collective Bargaining Agreements for the Maintenance Trades, Professional Supervisory and Senior Program Managers (CBA) for 2017-2018. RI•:\'IIAx'I:D BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Finance Comm. ❑ Public Safety Comm. ❑ Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: N/A COMMITTEE CHAIR: RECOMMENDATIONS: SPONsoR/ADMIN. COMMIT Human Resources; Forward to Regular Meeting Consent from C.O.W. IEE E COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $/A $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/17 MTG. DATE ATTACHMENTS 11/27/17 Informational Memorandum dated 11/20/17 (Copy of the 2017-2018 Labor Agreements provided under separate cover) 12/4/17 95 96 W i City of Tukwila Allan Ekberg, Mayor 1908 INFORMATIONAL MEMORANDUM TO: City Council FROM: Stephanie Brown, Human Resources Director CC: Mayor Ekberg DATE: November 20, 2017 SUBJECT: Teamsters Local Union No. 763 Collective Bargaining Agreements (CBA) 2017-2018 (Maintenance Trades, Professional Supervisory, and Senior Program Managers) BACKGROUND City staff, our Labor Relations Consultant, and the Teamsters Local Union No. 763 representatives opened labor negotiations on November 18, 2016, to reach an agreement on successor labor contracts. A tentative agreement negotiated in good faith between the parties was reached on September 6, 2017, resulting in a two-year agreement for the Maintenance Trades, Professional Supervisory and Senior Program Mangers for 2017-2018. DISCUSSION The collective bargaining agreements for these Teamsters bargaining groups, provide for a wage increase of 1.8% in 2017, and 2.7 % in 2018. In addition, they have agreed to accept the City's Self -Insured Medical Benefit Plan Design changes which will result in savings to our healthcare plan. Other negotiated changes the bargaining groups will receive are, two floating holidays (2); a voluntary supplemental benefit option to participate in Aflac and Legal Shield and clarification of language for ease of administration, interpretation and application. RECOMMENDATION The City Council is being asked to forward the 2017-2018 Collective Bargaining Agreements for Teamsters Local Union No. 763 Maintenance Trades, Professional Supervisory, and Senior Program Managers to the Regular Council meeting Consent Agenda on December 4, 2017 for approval and authorize the Mayor to sign the agreements. 97 98 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Ma or's review council review 11/27/17 SB .,:-/e2M4C S L R. 12/04/17 SB ❑ Ordinance Ake Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date CATEGORY -1 Discussion /1 Resolution A4tg Date Mtg Date 12/4/17 SPONSOR ❑Council ❑Mayor ❑.Finance ❑Fire TS ❑P&R Police PW ❑Court ITEM INFORMATION ITEM No. 4.G. 99 STAFF SPONSOR: STEPHANIE BROWN ORIGINAL AGENDA DATE: 11/27/17 AGI N D\ ITEM TITLE 2018 Non -Represented Wages 11/27/17 ❑ Mtg Motion Date ❑ Ordinance Ake Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date CATEGORY -1 Discussion /1 Resolution A4tg Date Mtg Date 12/4/17 SPONSOR ❑Council ❑Mayor ❑.Finance ❑Fire TS ❑P&R Police PW ❑Court I HR ❑DCD SPONSOR'S A Resolution updating and clarifying the 2018 Non -Represented employees salary SUMMARY schedule. Administration is recommending that the non -represented employees receive the same increase provided to the Teamsters represented employees of 2.7% (90% of CPI -W) effective January 1, 2018. REVIEWED BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Trans &Infrastructure ❑ Arts Comm. DATE: 11/21/17 /1 Finance Comm. ❑ Public Safety Comm. Comm. ❑ Planning Comm. CHAIR: SEAL ❑ Parks COMMITTEE RECOMMENDATIONS: SPONsoR/ADMIN. COMMITI Human Resources EE. Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDLEURIREQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/17 MTG. DATE ATTACHMENTS 11/27/17 Informational Memorandum dated 11/15/17 Resolution #1796 Resolution Draft Form with Attachments A -C Minutes from the Finance Committee Meeting of 11/21/17 12/4/17 99 100 City of Tukwila Allan Ekberg, Mayor 190$ INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Stephanie Brown, Human Resources Director CC: Mayor Ekberg DATE: November 15, 2017 SUBJECT: Non -Represented Employee Wages for 2018 ISSUE Non -Represented Employee Wage Adjustment for 2018. BACKGROUND Resolution No. 1796 (Attachment A) adopted in 2013 establishes a compensation policy for City of Tukwila Employees. Per this resolution, it outlines the process to "adjust non -represented employee salaries via market analysis to that of comparable jurisdictions in even -numbered years, and to provide a cost -of -living (COLA) allowance in odd -numbered years" In 2017 the market analysis was put on hold to allow Administration and the City Council to discuss Council Resolution No. 1796, which establishes the City's compensation policy. This item was on the Finance Committee Workplan and an initial discussion was held on April 4. The review was not completed this year mostly due to the fact that the collective bargaining agreements were still being negotiated. The recommendation is to move this review to the 2018 workplan. Per the request of the Finance Committee Chair, staff was asked to provide a recommendation on moving forward with a non -represented compensation plan in 2017 that would be equitable for these 37 employees (roughly 10% of the City's workforce) which include positions such as Office Technicians, Administrative Assistants, Coordinators, Administrators, Managers and Directors. Resolution No. 1796 provides a mechanism for deviations from this process. For internal equity considerations and to mitigate salary compression, Administration is recommending that the non - represented employees receive the same increase provided to the Teamsters of 2.7% (90% of CPI -W) effective January 1, 2018. This includes implementing the self-funded health benefit design changes recommended in 2017. In addition, discussion of the City's compensation policy would commence 1st quarter of 2018. RECOMMENDATION The Finance Committee is being asked to forward this item for discussion to the Committee of the Whole meeting on November 27, 2017 and subsequent December 4 Regular Meeting for approval. ATTACHMENTS - Attachment A: Resolution No. 1796 Employee Compensation Policy - Attachment B: Resolution Updating and Clarifying Non -Represented Employees Compensation - Attachment C: 2018 Benefits and Salary Schedule 101 102 City of Tukwila Washington Resolution No. I c A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING A COMPENSATION POLICY FOR CITY OF TUKWILA EMPLOYEES AND REPEALING RESOLUTION NO. 1387. WHEREAS, the City believes that the purpose of a compensation program is to facilitate recruiting, retention, development and productivity of employees; and WHEREAS, the City desires to utilize standardized policies, procedures and processes, wherever possible, for compensating all employee groups, both represented and non -represented; and WHEREAS, the City recognizes that current economic conditions and forecasts, long-range City budget forecasts, position rates for comparable jurisdictions, as well as internal equity considerations should assist in guiding in the compensation of employees; and WHEREAS, the City has made a determination to, when economic conditions allow, review and adjust non -represented employee salaries via a market analysis to that of the average of comparable jurisdictions in even -numbered years, and to provide a cost -of -living (COLA) allowance in odd -numbered years; and WHEREAS, the City has made a determination to, when economic conditions and negotiations allow, provide represented employees with salaries that reflect the average of comparable jurisdictions; and WHEREAS, the City has made a determination to, when economic conditions allow, provide benefits to represented and non -represented employees that are slightly above the average of comparable jurisdictions; and WHEREAS, the City Council will participate in setting negotiation expectations and reviewing and approving represented employee group contracts; W:\Word Processing\Resolutions\Compensation policy for City employees 5-29-13 final SB:bjs Page 1 of 3 103 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The following statements and processes are adopted for the purpose of guiding compensation programs for employees of the City of Tukwila. A. Information to be provided to the City Council. 1. For Represented Employees. A written presentation of current internal and local external public agency salary and benefit trends, including a salary and benefits market survey of comparable jurisdictions, as defined herein, will be provided to the City Council. This presentation must be made to the Council prior to the commencement of negotiations with the bargaining units regarding salary and benefits. The City Council and Administration will discuss represented employee group negotiation expectations, negotiating points, salary and benefit change floors and/or ceilings prior to the beginning and at appropriate points during negotiation sessions. 2. For Non -Represented Employees. A written presentation of current internal and local external public agency salary and benefit trends, including a salary and benefits market survey of comparable jurisdictions, as defined herein, will be provided to the City Council every year that a non -represented salary increase is due. Relevant Association of Washington Cities (AWC) data from the previous year's Washington City and County Employee Salary and Benefit Survey, for the comparable jurisdictions, will be used in the salary market survey. B. Compensation Policy. 1. All Puget Sound jurisdictions with +/-50% of Tukwila's annual assessed valuation, based upon the Department of Revenue data, will be used to create the list of comparable jurisdictions for evaluation of salary information. It is desirable to use the same comparable jurisdictions for both represented and non -represented employee groups. 2. For non -represented employees, the City desires to pay the average salary for the particular pay scale, as derived from the comparable jurisdiction data described in Section B.1. If the City's pay scale for any classification does not represent the average of comparable salary ranges (+/-5%), written justification must be provided to the City Council. For represented employees, the City desires to pay salaries that are competitive to the City's comparable jurisdictions. 3. The cost -of -living adjustment (COLA) in odd -numbered years for non - represented employees shall be based upon 90% of the Seattle -Tacoma -Bremerton Consumer Price Index (CPI -W) Average (June to June). It is desirable to calculate represented cost -of -living adjustments the same way, unless a different method is authorized by the Council. W:1Word Processing\Resolutions\Compensation policy for City employees 5-29-13 strike-thru SB:bjs 104 Page 2 of 3 4. The goal of the City is to establish parity between represented and non - represented employees' benefits. The City desires to provide employee benefits that are competitive to the comparable cities described herein. The City will endeavor to keep increases to annual health care costs under market averages. If costs exceed market averages, adjustments will be made to reduce benefit costs. 5. The goal of the City is to mitigate or avoid salary compression issues where possible. An example of salary compression would be when a non -represented supervisor earns less, or is projected to earn less than those that he/she supervises due to contracted wage increases. 6. If the Administration determines that a deviation from the above process (in its entirety or for individual positions) is necessary, it will provide justification to the City Council for review and approval prior to the adoption of any process change. Section 2. Resolution No. 1387 is hereby repealed. PASSED BY THE CITY COUNCIL QF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this 3 rg day of =_,A 2013. ATTEST/AUTHENTICATED: Christy O'Flah y, MMC, City Cler APPROVED AS TO FORM BY: Shell rney Kathy HoL gArd it Presi Filed with the City Clerk: S' Passed by the City Council: Lo - Resolution Number: 14') 19 1� W:\Word Processing\Resolutions\Compensation policy for City employees 5-29-13 final SB:bjs Page 3 of 3 105 106 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, UPDATING AND CLARIFYING NON -REPRESENTED EMPLOYEES' COMPENSATION, AND ADOPTING THE NON -REPRESENTED SALARY SCHEDULE AND BENEFITS SUMMARY, EFFECTIVE JANUARY 1, 2018. WHEREAS, the goal of the City is to mitigate or avoid salary compression issues where possible; and WHEREAS, City Administration recommends non -represented employees receive the wage adjustment that Teamsters' represented positions will receive of 2.7% to base wages effective January 1, 2018; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Non -Represented Wage Plan. A. The 2018 wage schedule for non -represented employees shall be increased by a rate of 2.7%. B. Longevity pay will continue to be a part of the plan. C. Merit will continue to be eliminated from the plan, but may be considered as a plan element in subsequent years. Section 2. Non -Represented Salary Schedule, Benefits Summary and Longevity Pay Plan. A. The non -represented salary schedule, "Attachment A" hereto, is hereby approved, effective January 1, 2018. B. The non -represented benefits summary, "Attachment B" hereto, is hereby approved, effective January 1, 2018. W:\Word Processing\Resolutions\Non-Represented Employees Compensation -2018 10-9-17 SB.bjs Page 1 of 2 107 C. The non -represented longevity pay plan, "Attachment C" hereto, is hereby approved, effective January 1, 2018. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2017. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Dennis Robertson, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Rachel B. Turpin, City Attorney Attachments: - Attachment A, Non -Represented Salary Schedule — 2018 - Attachment B, Non -Represented Employee Benefits Summary — 2018 - Attachment C, Longevity Pay Plan for Non -Represented Employees — 2018 W:\Word Processing\Resolutions\Non-Represented Employees Compensation -2018 10-9-17 SB:bjs 108 Page 2 of 2 Attachment A (Page 1 of 3) City of Tukwila Non -Represented Salary Schedule - 2018 Classification Title Job Title Range Office Technician Human Resources Technician B21 Office Specialist Assistant to the Chief B22 Administrative Assistant Deputy City Clerk Assistant to the Director B23 Executive Coordinator Executive Coordinator C41 Program Coordinator Information Technology Systems Administrator C41 Management Coordinator C42 Management Analyst Council Analyst Human Resources Analyst Parks & Recreation Analyst Public Works Analyst C42 Program Administrator Economic Development Liaison C43 Project Manager Community Engagement Manager C51 Program Manager Building Official Communications/Government Relations Manager Senior Manager Police Support Operations Technology Integration Manager Records Governance Manager/City Clerk D61 Administrative Manager Maintenance Operations Manager D62 Assistant Director Deputy Community Development Director Deputy Finance Director Municipal Court Administrator D63 Department Manager Assistant Fire Chief City Engineer D72 Department Administrator Economic Development & Strategic Planning Manager E81 Deputy Police Chief Deputy Police Chief E82 109 Attachment A (Page 2 of 3) City of Tukwila Non -Represented Salary Schedule - 2018 Classification Title Job Title Range Department Head Human Resources Director DCD Director Finance Director IT Director Parks & Recreation Director E83 Department Director Fire Chief Police Chief Public Works Director E91 City Administrator City Administrator F102 Title Table Revised: 08/25/17 110 Attachment A (Page 3 of 3) Non -Represented Salary Structure (Monthly) - 2018* *2.7% COLA applied. Payroll to review and provide finalized wage schedule. DBM Rating (Minimum) Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 All 4,178 4,309 4,442 4,571 4,702 Al2 4,510 4,653 4,797 4,938 5,077 A13 4,853 5,001 5,153 5,305 5,455 B21 5,068 5,258 5,450 5,638 5,833 B22 5,398 5,600 5,804 6,006 6,210 B23 5,723 5,938 6,154 6,368 6,587 B31 6,008 6,271 6,533 6,796 7,060 B32 6,487 6,770 7,055 7,340 7,625 C41 6,682 6,948 7,215 7,484 7,751 8,019 C42 7,057 7,341 7,623 7,906 8,188 8,474 C43 7,372 7,667 7,963 8,258 8,552 8,851 C51 7,611 7,952 8,294 8,637 8,977 9,324 C52 8,136 8,500 8,867 9,234 9,601 9,890 D61 8,049 8,451 8,854 9,258 9,660 10,060 D62 8,193 8,601 9,011 9,420 9,830 10,238 D63 8,480 8,904 9,328 9,753 10,178 10,600 D71 8,675 9,150 9,626 10,102 10,576 11,054 D72 9,104 9,600 10,100 10,596 11,096 11,593 E81 9,200 9,659 10,121 10,578 11,072 11,568 12,043 E82 9,538 10,017 10,495 10,972 11,452 11,931 12,407 E83 9,818 10,311 10,800 11,293 11,783 12,275 12,767 E91 10,160 10,668 11,178 11,687 12,195 12,705 13,213 E92 10,579 11,111 11,642 12,170 12,701 13,232 13,762 F101 11,005 11,555 12,105 12,658 13,210 13,758 14,309 F102 11,151 11,708 12,266 12,826 13,384 13,943 14,500 111 112 Attachment B (Page 1 of 2) Non -Represented Employee Benefits - 2018 Social Security (FICA1: Social Security benefits shall be provided as contained in Section 2.52.010 of the Tukwila Municipal Code (TMC). State -Wide Employee Retirement System (PERS): Retirement shall be provided as contained in Section 2.52.020 of the TMC. Holidays: Holidays shall be provided as contained in Section 2.52.030 of the TMC. An additional floating holiday has been granted to each non -represented employee, for a total of 2 floating holidays. Regular part-time employees shall be entitled to benefits on a pro -rata basis. Sick Leave: Sick leave shall be provided as contained in Section 2.52.040 of the TMC. Regular part-time employees shall be entitled to benefits on a pro -rata basis. Medical Insurance: The City shall pay 100% of the 2018 premium for regular full-time employees and their dependents under the City of Tukwila self-insured medical plan. In the event the monthly premium increase is above 8% per year, the City's joint/labor management committee, which includes a non -represented employee, shall meet and discuss changes in the self -Insured medical, dental, vision and prescription plan benefit levels in an effort to create plan savings so the premium costs do not exceed the 8%. Regular part-time employees shall be entitled to benefits on a pro -rata basis. Employees who choose coverage under the Kaiser Permanente plan shall pay the difference between the City of Tukwila plan full -family rate and the rate charged to them by Kaiser Permanente. Dental Insurance: The City shall provide 100% of the 2018 premium for the regular full-time employees and all dependents under the City of Tukwila self-insured dental plan for dental coverage. Regular part-time employees shall be entitled to the same benefits on a pro -rata basis. Life Insurance: For regular full-time employees, the City shall pay the premium for Plan C (Multiple of annual earnings) or similar group life and accidental death and dismemberment insurance policy. Said plan shall be at 100% of annual earnings rounded up to the next $1,000. Regular part-time employees that work at least 20 hours per week shall be entitled to benefits on a pro -rata basis (per insurance program requirements). Vision/Optical: Benefits are provided to all non -represented regular full-time employees and their dependents at the rate of $250 per person, to a maximum of $500 per family unit each year. Regular part-time employees and their dependents shall be entitled to benefits on a pro -rata basis. Disability Insurance: The City shall provide 100% of the premium for regular full-time employees for a comprehensive long-term disability policy. Regular part-time employees that work at least 20 hours per week shall be entitled to benefits on a pro -rata basis (per insurance program requirements). Health Reimbursement Arrangement/Voluntary Employee Benefit Association (HRA/VEBA): VEBA benefits shall be provided as contained in Resolution No. 1445 and as amended. 113 Attachment B (Page 2 of 2) Non -Represented Employee Benefits - 2018 Vacation: Following the sixth month of continuous employment, annual vacation leave of six full days (each day is calculated at eight hours, regardless of schedule worked) shall be granted. Thereafter, an additional day of annual leave shall accrue each month, up to a total of 12 days. Three additional days of annual leave shall be granted on the employee's anniversary date after the third, fourth and fifth years. After six years, the employee shall be granted one day per year additional annual leave to a maximum of 24 days per year. The maximum number of accrued hours is 384 or 48 days. Years of Service Vacation Accrual Years of Service Vacation Accrual 0-1 years 12 days* 10 years 19 days 1-2 years 12 days 11 years 20 days 3-6 years 15 days 12 years 21 days 7 years 16 days 13 years 22 days 8 years 17 days 14 years 23 days 9 years 18 days 15 years 24 days (maximum) *Six full days will be granted following the sixth month of continuous employment. (Days accrue at eight hours, regardless of schedule worked.) Regular part-time employees shall be entitled to benefits on a pro -rata basis. Uniform Allowance: An annual uniform allowance of $650 shall be granted to the following employees: Fire Chief, Assistant Fire Chief, Police Chief, Deputy Police Chief, and Senior Manager Police Support Operations. 114 Attachment C Longevity Pay Plan for Non -Represented Employees - 2018 The monthly longevity flat rates shall be as follows for regular full-time employees after the completion of the number of years of full time employment with the City set forth below. Regular part-time employees shall receive longevity on a pro -rata basis. Completion of 5 years $ 75 Completion of 10 years 100 Completion of 15 years 125 Completion of 20 years 150 Completion of 25 years 175 Completion of 30 years 200 115 116 Finance Committee Minutes November21, 2017 more opportunities for staff and residents to access GIS capabilities, primarily through the new Tukwila iMap application. The two-year agreement total is below the allocation of $90,000 in the adopted budget. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 4, 2017 REGULAR CONSENT AGENDA. G. Resolution: Non -Represented Employees 2018 Compensation Staff is seeking Council approval of a resolution that would grant an increase of 2.7% to non- *represented employees' compensation effective January 1, 2018. The Council's intent to review the overall compensation policy as adopted in Resolution 1796 is postponed to 1st Quarter2018 due to the ongoing collective bargaining negotiations occurring this year. Staff is proposing the 2.7% increase because it matches the increase that was negotiated for the Teamsters, which is the group that represents the largest number of City employees. The resolution also adopts the benefits and longevity pay plan. Councilmember Hougardy asked how this percentage increase relates to the overall City budget and revenue picture. Staff replied that the third quarter report shows sales tax revenues are under budget, but property tax is at budget and gambling tax is over budget. Overall revenues increased by about $570k. The City can pay for this salary increase if authorized by Council because departmental expenditures continue to be under budget. Councilmember Hougardy also asked what the dollar amount of the proposed increase for the 37 employees amounts to, and staff will follow up with that information. While acknowledging the market study has not been performed this year, Committee members requested general information about salary increases in other jurisdictions. This information will be provided when the compensation policy will be reviewed in early 2018. Councilmember McLeod expressed concern about granting a salary increase to employees who may already be above market, and stated he intends to focus on this next year. Staff noted that the Teamsters contract that will be before the Council includes language specifically addressing that, which will help inform the Council's policy discussion with regard to non -represented employees as well. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. III. MISCELLANEOUS Adjourned at 7:53 p.m. Committee Chair Approval Minutes by LH 117 118 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared byMayor's review Council review 11/27/17 RT CCPA4/ Ave S Construction's Final Settlement Change Order No. 9 n L- 12/04/17 RT ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date CATEGORY a Discussion L Mtg Date Mtg SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ IT ❑ P&R ❑ Police /1 PW SPONSOR'S Walsh Construction's Contract No. 14-067 provided construction for the Interurban Ave SUMMARY South Project. Final Change Order No. 9 settles the additional compensation request after mediation that began on 6/16/17 and continued throughout the summer. The final settlement is $1,425,000 with the State Transportation Improvement Board approving an additional $750,000 in grant funds. Council is being asked to approve Walsh Construction's Change Order No. 9 for $1,081,259.15. ITEM INFORMATION ITEM No. 4.H. 119 STAFF SPONSOR: ROBIN TISCHMAK ORIGINAL AGENDA DATE: 11/27/17 AGENDA ITEM TI'T'LE Interurban Walsh Ave S Construction's Final Settlement Change Order No. 9 11/27/17 Motion Date 12/04/17 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date CATEGORY a Discussion L Mtg Date Mtg SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ IT ❑ P&R ❑ Police /1 PW SPONSOR'S Walsh Construction's Contract No. 14-067 provided construction for the Interurban Ave SUMMARY South Project. Final Change Order No. 9 settles the additional compensation request after mediation that began on 6/16/17 and continued throughout the summer. The final settlement is $1,425,000 with the State Transportation Improvement Board approving an additional $750,000 in grant funds. Council is being asked to approve Walsh Construction's Change Order No. 9 for $1,081,259.15. REVIEWED BY ❑ COW Mtg. ❑ CA&P Cmte ❑ F&S Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. DATE: 11/14/17 COMMITTEE CHAIR: DE'SEAN /1 Transportation Cmte ❑ Planning Comm. QUINN (ACTING) RECOMMENDATIONS: SPONsoR/ADMIN. COMMITTEE Public Works Department Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $8,917,921.31 $11,984,000.00 $165,000.00 Fund Source: 104 ARTERIAL FUND (PAGE 16, 2017 CIP) Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/17 12/04/17 MTG. DATE ATTACHMENTS 11/27/17 Informational Memorandum dated 11/09/17, revised after 11/14 TIC meeting Walsh Construction's Final Settlement Change Order No. 9 to Contract No. 14-067 Interurban Ave S Project CIP Overview Minutes from the Transportation & Infrastructure Committee meeting of 11/14/17 119 120 City of Tukwila Allan Ekberg, Mayor Public Works Department - Bob Giberson, Director INFORMATIONAL MEMORANDUM TO: Transportation and Infrastructure FROM: Robin Tischmak, Acting Public Works Director CC: Mayor Ekberg DATE: November 9, 2017 (revised after 11/14/17 TIC) SUBJECT: Interurban Avenue South — S 143rd St to Fort Dent Way Project Number 90310402 Contract 14-067, Change Order No. 9 ISSUE Approve the final settlement and Change Order No. 9 for the Interurban Ave S Project with Walsh Construction. BACKGROUND Change Order No. 9 settles the additional compensation request and subsequent mediation effort between the City and Walsh Construction commenced on June 16, 2017, and all other disclosed or undisclosed disputes on the construction contract. Change Order No. 9 also increases the contract time by 141.5 calendar days and will allow the Interurban Ave S Project to be closed out. DISCUSSION Walsh Construction has asserted that, during construction, the project encountered unexpected impacts to the Contractor's work. The Contractor has itemized requests for additional compensation that include: 1) unpaid bid items, 2) extra work orders, 3) gravel borrow, 4) sub -contractor costs for Pearson Drilling and ADP Electric and 5) additional costs for inefficiencies and overhead. The City responded to these requests for additional compensation and disputed the Contractor's analysis of cost impacts. On June 16, 2017, the City and Walsh Construction entered mediation to resolve the disputed contract compensation amounts. Several additional settlement conferences were held throughout the summer to negotiate and discuss specific merits of the Contractor's request. Item by item negotiations were set aside in favor of a global settlement discussion. The City Attorney, PW staff, and our construction management consultant met with the Contractor's authorized representatives and discussed the settlement terms to formally close out the project. The discussed settlement terms included that the City shall increase the current contract time by 141.5 calendar days, making the total Contract time 1,067.5 calendar days. As a result of the contract time increase, the City shall rescind the assessed liquidated damage of $358,364.32, which were assessed, but never collected by the City from the Contractor. On top of the liquidated damage reimbursement, the City shall also pay the Contractor a total of $1,425,000.00, in addition to other amounts already paid, to arrive at a final settlement amount for the Interurban Ave S Project. FISCAL IMPACT The total contract amount was $7,836,662.16. With the remaining contract balance of $343,740.85, Change Order No. 9 is for $1,081,259.15 for a total balance owing of $1,425,000 to Walsh Construction. The Transportation Improvement Board has approved an additional $750,000 in grant funds. We are over the 2017 CIP budgeted amount by $950,000, but with the additional $750,000 TIB funds and $35,000 in traffic impact fees for signal improvements, the City overage is $165,000. The total final contract amount is now $8,917,921.31. The $165,000.00 is available from the 2017 Overlay & Repair Project that was under budget. RECOMMENDATION Council is being asked to approve Walsh Construction's Contract No. 14-067's final settlement Change Order No. 9 for $1,081,259.15 with a contract time extension of 141.5 calendar days and consider this item at the November 27, 2017 Committee of the Whole and the December 4, 2017 Regular Meeting. Attachments: Change Order No. 9 Interurban Ave S Project CIP Overview W:\PW Eng\PROJECTS\A- RW & RS Projects\Interurban Ave S (90310402)\Info Memo for CO #9, Final CA 110717 gl.docx 121 122 CITY OF TUKWILA CONTRACT CHANGE ORDER NO. 9 Sheet 1 of 1 DATE: November 6, 2017 BUDGET NO.: 104.98.595.300.65.00 PROJECT NO.: 90310402 CONTRACT NO.: 14-067 PROJECT NAME: Interurban Ave South TO: Walsh Construction You are hereby directed to make the herein described changes to the plans and specifications or do the following described work not included in the plans and specifications on this contract: NOTE: This change order is not effective until approved by the "Owner" and a notice to proceed is issued. Conditions: A. The following change, and work affected thereby, are subject to all contract stipulations and covenants; B. The rights of the "Owner" are not prejudiced; C. All claims against the "Owner" which are incidental to or as a consequence of this change are waived; and D. The Contractor must submit all Field Overhead and Home Office Overhead Rates for approval in advance of all change orders. CHANGE: See Attached Exhibit "A" We the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment therefore the prices shown above and below. ACCEPTED: Date Contractor By Title Original Contract (with tax) $ 7,597,833.39 APPROVED BY THE CITY OF TUKWILA Previous Change Orders $ 238,828.77 Date This Change Order (without tax) $1,081,259.15 By Mayor REV. CONTRACT AMOUNT $ 8,917,921.31 Original Contract Time: 450 Calendar Days Additional Contract Time for this Change Order: 141.5 Days Updated Contract Time: 1,067.5 Calendar Days City Engineer ORIGINAL: City Clerk (1 of 2) cc: Finance Department (w/encumbrance) Contractor (2 of 2) Project Management File PW Project Finance File (11 EXHIBIT "A" CHANGE: This Change Order settles the Contractor's request for additional compensation and is meant to settle all dispute, both disclosed and undisclosed, on the Contract. This Change Order also increases the Contract time by 141.5 calendar days, and will allow this Project to be closed out. Change Order Details: The Contractor, Walsh Construction, has asserted that, during construction, the project encountered unexpected impacts to the Contractor's work that resulted in significant additional expense to the Contractor. The Contractor has itemized requests for additional compensation that include: 1) unpaid bid items, 2) extra work orders, 3) gravel borrow, 4) sub -contractor costs for Pearson Drilling and ADP Electric and 5) additional costs for inefficiencies and overhead. The City responded to these requests for additional compensation and disputed the Contractor's analysis of cost impacts. On June 16, 2017, the City and Walsh Construction entered mediation to resolve the disputed contract compensation amounts. Several additional settlement conferences were held to negotiate and discuss specific merits of the Contractor's request. Item by item negotiations were set aside in favor of a global settlement discussion. The City's project representatives met with the Contractor's authorized representatives, and discussed the settlement terms to formally close out this project. The discussed settlement terms are as follow: Included in this Change Order #9, the City shall increase from the current Contract time by 141.5 calendar days, making the total Contract time at 1,418 calendar days. As a result of the Contract time increase, the City shall rescind the assessed liquidated damage of $358,364.32, which was assessed, but never collected by the City from the Contractor. On top of the liquidated damage reimbursement, the City shall also pay the Contractor $1,425,000.00 as a final settlement amount for all outstanding compensation claims. Once this Change Order #9 is executed, the final payment will be issued, and the Release of Claims form will be completed by the Contractor. Thereafter, the construction project can be closed out by the City Council. Page 1 of 1 124 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 PROJECT: Interurban Ave S (S 143 St - Fort Dent Way) Project No. 90310402 DESCRIPTION: Design and construct sidewalks, pavement restoration, drainage, and lighting. JUSTIFICATION: Pedestrian traffic is forced to walk in traveled way, lighting is substandard, drainage is poor and pavement failure is accelerating. STATUS: Completed final design in 2013. Construction awarded on 5/5/14 and construction completed in 2016. MAINT. IMPACT: Reduce annual pavement repairs and increase pedestrian safety. COMMENT: Federal Hwy STP Grant of $389,000 for design. State TIB grant of $5m, Federal STP grant of $2.145m, and developer mitigation of $260,000. City Bond for $3.465m in 2014/15. FINANCIAL Through Estimated (in $000's) 2005-11 2012 2013 2014 2015 2016 2017 TOTAL BUDGET Diff EXPENSES Project Location <oo. ��\��� 1 Design 464 2 369 87 74 996 996 . Land(R/W) NW 209 , 15 � 209 209 Const. Mgmt. Itb 760 1,395 577 71 2,803 2,455 (348) Construction DD m y � ~ �� S 1,494 4,868 1,139 1,425 8,926 8,324 (602) TOTAL EXPENSES 464 2 578 2,341 6,337 1,716 1,496 12,934 11,984 (950) FUND SOURCES _*_ __to S 156 St � „div tn�nt 0- & Amu Awarded TIB Grant I s,6ost 296 2,847 779 966 4,888 4,138 750 Awarded STP Grant 389 1,571 552 2,512 2,512 Mitigation/Traffic Impact 99 85 184 149 35 Bond 3,558 3,558 3,558 City Oper. Revenue 75 2 578 375 (705) 937 530 1,792 1,627 165 TOTAL SOURCES 464 2 578 2,341 6,337 1,716 1,496 12,934 11,984 950 WWW EngIPROJECTSIA- RW & RS ProjectsVnterurban Ave S (90310402)IGrants 8 Bondllnterurban Final CIP sheet 110617 125 S;za Project Location <oo. ��\��� 1 ► , w.All'P, NV . , NW --ra , 15 � Ali Itb � �'i//�'• �"�'�� �290P!31 N s , 44 6 St St DD m y � ~ �� S 1 1 u / _*_ __to S 156 St � „div tn�nt 0- & Amu Tukwla I s,6ost WWW EngIPROJECTSIA- RW & RS ProjectsVnterurban Ave S (90310402)IGrants 8 Bondllnterurban Final CIP sheet 110617 125 126 Transportation & Infrastructure Committee Minutes November 14, 2017 stormwater modeling and extend the contract expiration date to April 30, 2019. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 20, 2017 REGULAR CONSENT AGENDA. E. Grant Acceptance: Non -Transportation Commute Trip Reduction Pilot Program Staff is seeking Council approval of a grant award with WSDOT in the amount of $107,000 to implement a pilot program to reduce regional congestion and improve air quality in Tukwila and South King County. The funding opportunity was designed to pilot the expansion of Transportation Demand Management (TDM) programs beyond traditional Commute Trip Reduction (CTR) affected sites into new markets. King County Metro and the Port of Seattle are providing the required $25,000 local match. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 20, 2017 REGULAR CONSENT AGENDA. F. Tukwila International Boulevard Retrofit Implementation Staff updated the Committee on implementation of the community's vision for the Tukwila International Boulevard (TIB) neighborhood and the Congress for New Urbanism (CNU's) recommended action on a rechannelization design. The CNU report suggested that the City change the street design to reduce through -lanes to two from four, allowing on -street parking and bicycle lanes and adding crosswalks. The City contracted with Fehr & Peers to study the impacts associated with the lane removal and potential mitigation. The study found that at least 50% of existing traffic is pass through and unrelated to local business or residences. Traffic diversion will occur on adjacent streets in the order of 42nd Avenue South, Military Road South, 1-5, Des Moines Memorial Drive South, and 51St Avenue South/Macadam Road. By 2030, traffic would increase by 20% under the road diet scenario. The study also found that typical traffic calming measures on side streets would not be effective in preventing the traffic diversion, but intersection diverters or short one- way segments could help. KPG, Inc. prepared three preliminary design options and cost estimates that all include removal of the two lanes plus parking and a bicycle lane. Alternative 1 would add bulb -outs at mid -block pedestrian crossings at a cost of $1,130,000, Alternative 2 would only restripe at a cost of $250-400,000, and Alternative 3 would add crosswalks and bulb -outs at intersections at a cost of $1,270,000. Staff recommends implementing Alternative 2 because it is a low-cost option to help staff evaluate traffic impacts prior to further investment. The Committee discussed the study's findings. Councilmember Robertson suggested diverting traffic further south down by South 130th Street in order to avoid a traffic increase on 42nd Ave S. Councilmember Quinn suggested painting zones and increasing Police speed enforcement, like in Bellevue. He stressed the importance of protecting the residential streets. The Committee did not arrive at a recommendation but requested staff return in 2018 at the Committee level to continue discussing the options. NO RECOMMENDATION. RETURN TO COMMITTEE. G. Final Construction Settlement: Interurban Avenue South Staff is seeking Council approval of a final settlement and Change Order No. 9 with Walsh *Construction in the amount of $1,081,259.15 for the Interurban Avenue South Project. Walsh has asserted that the project encountered unexpected impacts and has sought additional compensation, which the City disputed. The parties have been in mediation since June 2017 and this settlement represents the agreed upon terms. Funding for this settlement is aided by an additional $750,000 from the State Transportation Improvement Board and $35,000 in traffic impact fees. With a final contract amount of $8,917,921.31, the City's overage is $165,000. The Committee requested that staff amend the informational memo to clearly show where the $165,000 127 Transportation & Infrastructure Committee Minutes November 14, 2017 will come from. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. III. MISCELLANEOUS Valley View Sewer District Open House Valley View Sewer District is holding an open house on Sunday, November 19, 2017 from 3:00 - 4:30 p.m. regarding The Loop New Sewer Construction Project. City staff and Councilmember Hougardy plan to attend. The Transportation Committee Meeting adjourned at 6:25 p.m. Committee Chair Approval Minutes by LH, reviewed by GL 128 Upcoming Meetings & Events November/December 2017 27th (Monday) 28th (Tuesday) 29th (Wednesday) 30th (Thursday) 1st (Friday) 2nd (Saturday) > Community Development & Neighborhoods Cmte., 5:30 PM Hazelnut (Hazelnut Conference Room) > City Council Committee of the Whole Mtg., 7:00 PM (Council Chambers) > Transportation & Infrastructure Cmte., 5:30 PM (Foster Conference f Room) D Public Safety Plan Siting Advisory Cmte, 6:30 PM (Hazelnut Conference Room) Public Information Meeting 4:30 to 6:30 PM Valley View Library (17850 MilitaryRd. S., SeaTac) Design Review, Unclassified Use Permit and SEPA Review of a proposal to construct a new pump station (at 16032 42nd Ave. S.) Staff from Highline Water District and the City of Tukwila will be available to answer questions about the project. Public Safety Plan Open House Come get updates on facility siting. 10:00 AM —Noon King County Water District #125 at 3460 So. 148th St. (in the Valley View Sewer District Community Room) Clean -Up Collection Event 8:30 — 3:30 AM Two locations! For information visit www.tukwilawa. gov/cleanup 4th (Monday) 5th (Tuesday) 6th (Wednesday) 7th (Thursday) 8th (Friday) 9th (Saturday) > Civil Service Commission, 5:00 PM (Human Resources Conference Room) D Public Safety Cmte, 5:30 PM (Hazelnut Conference Room)Teacher's f D City Council Regular Mtg., 7:00 PM (Council Chambers) D Finance Cmte, 5:30 PM (Hazelnut Conference Room D Equity & Social Justice Commission, 5:15 PM (Hazelnut Conference Room) Council Chat 10:00 AM to 12:00 NOON Stop by and informally talk with a Tukwila City Councilmember about anything on your mind regarding Tukwila. (Foster High School Lounge 4242 S. 144th St.) ➢ Arts Commission: 3rd Wed., 5:00 PM, Tukwila Community Center. Contact Tracy Gallaway at 206-767-2305. ➢ Civil Service Commission: 1st Mon., 5:00 PM, Human Resources Conf. Room. Contact Sara Valdez at 206-431-2187. >Community Development and Neighborhoods Committee: 2nd & 4th Mon., 5:30 PM, Hazelnut Conf. Room. Contact Laurel Humphrey at 206-433-8993. (A) Tukwila Tourism and Economic Development Branding. (B) An Ordinance and Development Agreement with Bellwether Housing. (C) Human Services Plan. (D) A lease for Way Back Inn Gregor House. > Equity & Social Justice Commission: 1st Thurs., 5:15 PM, Hazelnut Conf. Room. Contact Mia Navarro at 206-454-7564. >Finance Committee: 1st & 3rd Tues., 5:30 PM, Hazelnut Conf. Room. Contact Laurel Humphrey at 206-433-8993. ➢ Park Commission: 2nd Wed., 5:30 PM, Community Center. Contact Robert Eaton at 206-767-2332. >Public Safety Committee: 1st & 3rd Mon., 5:30 PM, Hazelnut Conf. Room. Contact Laurel Humphrey at 206-433-8993. ➢ Planning Commission/Board of Architectural Review: 4th Thurs., 6:30 PM, Council Chambers at City Hall. Contact Wynetta Bivens at 206-431-3670. >Transportation and Infrastructure Committee: 2nd & 4th Tues., 5:30 PM, Foster Conf. Room. Contact Laurel Humphrey at 206-433-8993. (A) Verizon Franchise Ordinance. (B) Transportation & Infrastructure Committee Workplan. ➢Tukwila Int'l. Blvd. Action Cmte: 2nd Tues., 7:00 PM, Valley View Sewer District. Contact Chief Linton at 206-433-1815. 129 Tentative Agenda Schedule MONTH MEETING 1 - REGULAR MEETING 2 - C.O.W. MEETING 3 - REGULAR MEETING 4 - C.O.W. November 6 13 20 27 See agenda packet cover sheet for this week's agenda: November 27, 2017 Committee of the Whole Meeting. December 4 Consent Agenda 11 18 26 (Tuesday) Collective bargaining agreements for Teamsters. Public Hearing A Quasi -Judicial Hearing on the Tukwila South Final Plat — Phase 1. Unfinished Business Approve the Tukwila South Final Plat — Phase 1, creating a new lot layout and phasing plan for parcels within the Tukwila South Development. Report from the Public Safety Bond Financial Oversight Committee. An ordinance updating regulations regarding distribution of REET (Real Estate Excise Tax) funds. A contract change order (Final Settlement) with Walsh Construction for the Interurban Ave South Project in the amount of $1,081,259.15. An ordinance authorizing and providing for the acquisition of interests in land for the purpose of completing the 53rd Avenue South roadway and surface water drainage system projects. Notice of Final Action. 130