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HomeMy WebLinkAbout2018-04-23 Committee of the Whole MinutesTukwila City Council Committee of the Whole Meeting City Hall Council Chambers April 23, 2018 — 7:00 P.M. MINUTES COMMITTEE OF THE WHOLE CALL TO ORDER/PLEDGE OF ALLEGIANCE Council President Seal called the Tukwila City Council meeting to order at 7:00 p.m. and led the audience in the Pledge of Allegiance. OFFICIALS Present were Council President Seal; Councilmembers Dennis Robertson, Kathy Hougardy, De'Sean Quinn, Kate Kruller, Thomas McLeod, Zak Idan. CITY OFFICIALS David Cline, City Administrator; Peggy McCarthy, Finance Director; Vicky Carlsen, Deputy Finance Director; Mia Navarro, Community Engagement Manager; Bruce Linton, Police Chief; Brandon Miles, Business Relations Manager; Laurel Humphrey, Council Analyst; Andy Youn, Deputy City Clerk. PUBLIC COMMENTS Brandon Miles, Business Relations Manager, introduced Kirsty Ellison, Vice President of Marketing at Seattle Chocolates. Ms. Ellison relayed Seattle Chocolates is 26 years old and has been in Tukwila for the past 11 years. Next week, on May 15t, 2018, Seattle Chocolates will be unveiling a complete rebranding, including changing the logo, bar size, profile and wrapper designs. Part of this rebranding will include a celebration of Tukwila, through the debut of a Tukwila hazelnut bar. The new bar will feature hazelnut butter with brown rice crisps in milk chocolate and will be available at Bartell Drug stores throughout Washington. The Councilmembers expressed appreciation for Seattle Chocolates and commented that the factory tour is a prime activity for those visiting Tukwila. Ms. Seal noted the factory tour is open to children age 6 or older. Ms. Ellison explained the minimum age policy is due to safety reasons, as the mezzanine where the tour takes place is located nearly 10 feet off the ground and has open railings. She invited the Councilmembers and the public to visit in October for a haunted factory tour for Halloween. Councilmember Kruller noted there is a $10.00 admission fee for tours. Those taking public transportation can take King Country Metro bus 150 to visit the factory. Simon Stephens referenced his last visit to a Committee of the Whole meeting, in which he expressed concern that the City is requiring addresses from those speaking under Public Comments. He feels this is insensitive due to the high number of homeless individuals in the area. Mr. Stephens stated it also excludes differently-abled individuals who are unable to communicate an address and could be deemed offensive to the Duwamish people who have been displaced due to colonization. He is exercising his first amendment right to free speech. Mr. Stephens relayed an incident he witnessed at Southcenter Mall in which cops appeared to be targeting African-American youth. He expressed his frustration at continuing to witness instances of discrimination and racism. Abdi Adan, 428 Southwest 112th Place, Seattle, is present tonight to speak on the Justice Center project. He recently found out that the City of SeaTac is relocating residents along South 152nd Street by December 2018. This will displace more businesses. He asked whether this is a coordinated effort between both cities or whether the timing is coincidental. He also expressed his dissatisfaction with the lack of meaningful responses from the City and its elected officials regarding the displacement of Tukwila City Council Committee of the Whole Minutes April 23, 2018 Page 2 of 9 businesses due to the Justice Center. Mr. Adan stated he has been a part of the Tukwila community for 24 years and he considers the City his home. He is committed to fighting for his rights. Ms. Kruller expressed it can be difficult for Councilmembers to respond during business hours as many work full-time outside of the City. She asked whether City Administration had recently met with business owners. Mr. Adan answered in the affirmative, but indicated he is frustrated because he feels the magnitude of his situation is not fully understood by City Administration. Councilmember Quinn clarified Tukwila has not coordinated with SeaTac on this particular issue. David Cline, City Administrator, confirmed Mr. Quinn's statement. Ms. Kruller noted SeaTac initiated a long-term plan for the area 4 to 5 years ago, but reiterated Tukwila has not coordinated with SeaTac to displace businesses along Tukwila International Boulevard. Omar Osman, 13445 Martin Luther King Junior Way South, Seattle, is here to speak on the displacement of businesses due to the Justice Center project. When he shared this news with his friend, she was very upset. The businesses that will be displaced are community-based. There is value in staying together. It is also a place where new immigrants and refugees learn to assimilate and integrate into a new culture. Mr. Osman asked the City to support his community instead of destroying their buildings. PUBLIC HEARING Fire and Parks Impact Fees: (1) An ordinance updating fire impact fees (2) An ordinance updating parks impact fees (3) A resolution amending the 2017-2022 Financial Planning Model and the Capital Improvement Program (CIP) (4) An ordinance amending the 2014 PROS Plan (Parks, Recreation and Open Space Plan) 7:20 p.m. Council President Seal opened the public hearing and asked for a staff report. Peggy McCarthy, Finance Director, utilized a PowerPoint presentation to provide an overview of this item as follows: What • are Impact Fees? Growth Management Act impact fees are those fees charged by a local government on new development to recover a portion of the cost of capital facility improvements needed to serve that new development. The Washington State Legislature outlined the intent of local impact fees At the heart of impact fees is the idea that growth should pay for growth o For Tukwila, growth is the expected addition of residents and employees o Residential units and commercial square feet are used as a proxy for growth since fees are collected during the permitting process. • in RCW 82.02.050. • Fee Update Process • Fees established in December 2008; effective January 1, 2009 • For 2018 update, convened staff team and retained BERK Consulting • September project kick off • Preliminary results shared with Finance Committee on November 21, 2017; request to return to Committee with: o Additional analysis o Outreach to developer community o Policy options for consideration Developer Outreach • Selected developers were invited to review and discuss the proposed fees with City staff. Two meetings were held and the feedback included the following: Tukwiia City CouncI Committee of the Whole Minutes April 23, 2018 Page 3of0 • The fees should - 1. Allow easy and inexpensive change of land use (ie. From retail to office) 2. Be competitive when compared with total development costs of other neighboring jurisdictions 3. Have visible benefits that are easily understood by tenants 4. Be strategic in attracting development that complements existing businesses Policy Chanqes in Proposed LeqsIation 1. Annual automatic fee update: based on the Construction Cost Index, Seattle, June - June 2. Fees reduced to retain competitiveness • Proposed fees contain a 40% reduction from the unadjusted fees • To arrive at this 40% reducdon. Finance and Economic Development staff reviewed the impact fees of several cities and agenuion, and experimented with different reduction percentages until arriving at a level comparable with other jurisdictions 3. K-12 Educational Facility Fee Reduction • Reduce park fees 80% for K-12 educational facilities to avoid double counting service population Council is asked to consider for approval: Fire Impact Fee Ordinance • Exhibit A — Tukwila Fire and Parks Impact Fees Rate Study, 2018 • Exhibit B — Proposed Impact Fees Parks Impact Fee Ordinance • Same elements as Fire Impact Fee Ordinance Capital Improvement Plan 2O17-2O22Amending Resolution • Impact fee eligible projects Parks Recreation and Open Space PIan, 2014 Amending Ordinance • Incorporates an additional parks level of service standard Impact Fee Ordinances — Fire and Parks • Fire and Parks impact fee ordinances mirror one another. • Combination of three existing ordinances 1. Fee setting ordinance 2. Payment deferral option for single family resident units, 3. Payment deferral option in Tukwila Urban Center, expired in 2016 and deleted in draft ordinance. • Policy change allowing for automatic annual fee update based on Construction Cost Index. • ExhibitA—Tukwila Fire and Park lmpact Fee Rate Study, 2018 • Exhibit B — Fee Schedule Exhibit A Impact Fee Rate Study Fire impact fee ou|co|aUononpages xx'J9 Park impact fee calculation on pae40 Tukwila City Council Committee of the Whole Minutes April 23.2O18 Page 4 of 9 Exhibit B — Fee Schedule • Unadjusted fee from BERK study • Adjusted fee from BERK study reflecting reduction of unadjusted fee proportionate share • Proposed fees o Reflect a reduction from the Unadjusted fee, BERK study o Proposed 40% reduction, a level considered regionally competitive to development community; computed on unadjusted fee. o Fire proposed impact fees, page 47 o Parks proposed impact fees, page 65 Two Policy Considerations 1. Proposed fees • As presented, all 5 land use categories for both fire and parks impact fees reduced at same rate. • Option to further adjust up or down on a per category basis or other bas s as long as maximum allowable fee (adjusted fee, BERK study) is not exceeded. 2. Parks Jmpact fee for K-12 Educational Facilities • Educational facilities fall into Office land use category • Impact fee based on service population, at least 80% of students in K-12 estimated to also be residents • Teachers and staff a function of number of students • Fee reduction to avoid potenbal duplication • Regional Fee comparisons on pages 66 and 67 of packet. • Tukwila Fee comparison 2008 fees to 2018 proposed fees, page 68 Capital Improvement Program 2017-2022 Amending Resoution • Washington State aw requires that impact fees can only fund projects from the Capital Faciities Element of a Comprehensive Plan • Fire impact fee eligible project list and CIP pages, page 87 • Parks impact fee eligibe project Iist and CIP pages, page 59 Parks, Recreation and Open Space (PROS) Plan, 2014 Amending Ordinance • Adds per capita investment as an additional level of service standard • Page 107 of packet, o "Parks LOS 2: The investment per capita of the City's park systems including land and facilities should be commensurate with the current level of investment as growth occurs". Ms, McCarthy noted staff are asking that the Council consider this item at the May 7, 2018 Regular Meeting or return to the Finance Committee for further analysis and discussion. Councilmember Idan asked the folowing clarifying questions: • Will there be additional opportunities for the public to provide comment? Ms. McCarthy relayed the process for Public Hearing involves public testimony after the Council has asked clarifying questions. • Is the unadjusted fee what was recommended by BERK Consulting (as shown on page 65 of the agenda packet)? MsMcCarthy explained the unadjusted fee does not factor in the proportional share of revenue received from new residents and employees. The adjusted fee is reduced because it factors in the proportional share of revenueShe noted the unadjusted fee was included because the fee reduction was calculated from the unadjusted fee. • How was the 40% reduction determined? Finance and Economic Development Staff reviewed the impact fees of several cities and experimented with different reduction percentages until arriving at a level comparable with other jurisdictions. • How did you select the cities used to compare regional impact fees? Ms. McCarthy stated impact fees were difficult to find on the internet. Hovvever. Renton and Puget Sound RFA can be considered regional competitors due to their proximity to TukwilaWhile Issaquah is not Iocated nearby, staff provided their information as an additional data point. Tukwila Cty Counci Committee of the Whole Mnutes April 23, 2018 Page 5of5 • What do the negative numbers represent (as shown on page 89 of the agenda packet)? In 2016, the City issued Public Safety bonds. A portion of the bonds was allocated to Fire Station 51, but money was not spent on the project in 2016. Negative figures indicate revenue fiows forward and is available for future years and expenses. The column on the far right indicates the City's total cost. Councilmember Hougardy asked the foliowing clarifying questions: • What was the outreach plan to the business community? Ms. McCarthy shared that Mr. Miles sent out email communications and made contact with a list of approximately 6 to 8 developers. As a result of that outreach, two meetings were held with different businesses and developers. During these meetings, staff presented the proposed fees for feedback. w Were all the developers asked to provide feedback? Staff outreached to selected developers who have dev&oped in Tukwila in the past. • Will Accessory Dwelling Units (ADUs) be charged impact fees? Currently, the City aliows only attached ADUs, which are not charged impact fees. Should the City revise its policy and allow detached ADUs, the staff Impact Fee Committee recommends these units also be exempt from impact fees to encourage development. Ms. Hougardy asked the following clarifying quesdons, for follow-up at the next meeting. • Regionally, what percentage of cities have impact fees? • What is the trigger for impact fees, if any? • What percentage are impact fees of cost of construction? Ms. Nm||erosked the following clarifying questions: • Can you address why educational facilities have a special impact fee rate? Ms. McCarthy confirmed Ms. Kruller's statement that K-12 facilities have reduced impact fees as students using parks may also be residents and therefore would effectively be charged twice. • Can you confirm fees are not be/nDoha4Jod/orADUo/n&hepoopoxod/egislabon?K8a.K8oCarthy explained that while a definition for ADUs was included to prepare for the possibility of a future discussion on this item, ADUs do not have impact fees Council President Seal called for public comments. There were no public comments. 7:55 p.m. Council President Seal closed the public hearing. SPECIAL ISSUES a. Fire and Parks Impact Fees: (1) An ordinance updating fire impact fees (2) An ordinance updating parks impact fees (3) A resolution amending the 2017-2022 Financial Planning Model and the Capital Improvement Program (CIP) (4) An ordinance amending the 2014 PROS Plan (Parks, Recreation and Open Space Plan) Councilmember Quinn indicated this item was discussed at the Finance Committee meeting on April 17, 2018. The committee members were unanimous in recommending approval. Mr. Quinn noted some changes to the legislation requested by the Committee did not appear on the agenda packet. He highlighted pages 16 and 56 of the agenda packet and asked that references to "Fire Chief" and "Parks and Recreation Director" be removed from section 6 of the impact fee ordinances. Ms. Hougardy reiterated the questions asked earlier in the meeting: • What percentage are impact fees ofcost ofconstruction? Mr. Cline relayed staff will return with an answer to this question. • What is the trigger for impact fees, ifany? Mr. Miles explained impactfees would be charged as a percentage when an individual adds square footage to office or retail space. For example, adding Tukwila City Council Committee of the Whole Minutes April 23, 2018 Page 6 of 9 5,000 square feet of retail would result in an impact fee for that additional space. Impact fees do not apply to additions on single family homes. • Tukwila's impact fees for retail are significantly higher than comparable jurisdictions. Will this jeopardize how competitive the City is? Mr. Miles expressed there is a premium to be in the Southcenter area, which is one of the major shopping districts in the state. People are willing to pay a higher price for a good location. • Are impact fees City-wide? Mr. Miles responded in the affirmative. Ms. Hougardy commented higher impact fees are practical in the Tukwila Urban Center, but other zones may benefit from reduced impact fees. Councilmember Robertson remarked the actual amount charged for impact fees is comparatively small when considering the fee is per 1,000 square feet of development. He feels the proposed amounts will not deter developers from building in the City. He is comfortable moving forward with the staff recommendation. Ms. Kruller stated this legislation successfully considers the needs of Tukwila residents while still meeting the needs of the City. Mr. Quinn noted there are provisions within the ordinances for deferring the impact fee. He stated the legislation amending the Financial Planning Model and PROS Plan is consistent with the City's processes. Ms. Hougardy expressed appreciation for the additional work by staff following the Committee meeting. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. b. An ordinance amending Ordinance No. 2559, relating to Limited Tax General Obligation (LTGO) bonds in the aggregate principal amount of not to exceed $20,000,000. Councilmernber Quinn indicated this item was discussed at the Finance Committee meeting on April 17, 2018. The committee members were unanimous in recommending approval. Ms. McCarthy provided a brief explanation of this item and stated this ordinance extends the bond payment term written into Bond Ordinance No. 2559 from the original 20 -year period to 30 years. Staff are asking for this amendment as lengthening the maturity period will reduce the annual debt service and provide maximum flexibility to the City as it works through the Public Safety Plan. Passage of this ordinance would provide flexibility for either 20 or 30 years. She noted the bonds were scheduled to be sold on May 17, 2018, but the Committee requested to delay the sale to allow for a holistic overview of the finances related to the Public Safety Plan. Councilmember McLeod noted this amendment provides the flexibility to choose either a 20 -year or 30 - year term. He asked what the likelihood is for choosing a longer term. Ms. McCarthy relayed both options will be seriously considered. Ms. Kruller expressed the Committee members felt they did not have enough time to deliberate and make thorough decisions. Mr. Quinn concurred with Ms. Kruller's statement. Despite a lack of information, the Committee chose to move this item forward to maximize the option for a 30 -year term, rather than close the conversation completely. Mr. Robertson added that the Committee is trying to be disciplined in the decision-making process. It is important to have the full picture before making decisions with long-term impacts. He stated extending the bond term from 20 years to 30 years will mean a higher total cost of $6.5 million. However, an extended term will save the City approximately $300,000 annually. Whether the annual savings is critical to the City's long-term budget is still unclear. Tukwila City Council Committee of the Whole Minutes April 23, 2018 Page 7 of 9 Mr. Idan asked if the interest rate will change with a 30 -year term. Ms. McCarthy stated the City's Financial Advisor, PFM, estimated the interest rates for a 30 -year term will be approximately 4.51% and a 20 -year term will be 3.75%. Mr. Idan suggested holding a workshop involving the community, as this is a voter -approved bond. Mr. Quinn relayed the Committee agreed to hold a workshop once it receives additional information. The Committee intends to articulate its recommendations during the workshop. Ms. McCarthy referenced an email sent from a resident earlier today. She clarified the bonds under discussion for this item are councilmanic, or limited tax general obligation (LTGO) bonds. These are not the same bonds that were voted on by taxpayers in 2016. Mr. Robertson explained councilmanic bonds are paid for by the City from the general ledger. These bonds do not add property taxes to residents or business owners. Mr. Quinn confirmed property tax increases have not been part of the discussion to date. He emphasized the Committee is trying to obtain more information, so it can determine how decisions will impact the overall budget. Mr. Robertson shared the Committee is awaiting information on the cost of construction for the Public Safety Plan facilities to make effective financial decisions. Thus far, the Committee has only received the schematic designs for Fire Station 51. The Justice Center schematic design and cost of construction are due sometime in May. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. c. Review of recommendations for recipients of the "Tukwila, City of Opportunity Scholarship." Mia Navarro, Community Engagement Manager, explained the City created the Tukwila City of Opportunity Scholarship program in 2014 to provide financial assistance to high school seniors living in Tukwila for post -secondary education costs. The program allocates $10,000 per calendar year for scholarship awards ranging from $1,000 to $5,000 each. The scholarship was advertised on the City's website, on Channel 21, TheWashBoard.org and Scholarships.com. Informational brochures were provided to Foster High School, Aviation High School, Tyee Educational Complex and Seattle Christian High School. The Scholarship Selection Committee comprised Mayor Allan Ekberg; Council President Seal; Ms. Navarro; Cheryl Thompson, Executive Assistant; and Jenni Standard, College and Career Counselor at Foster High School. The committee reviewed seven applications and considered grade point average, financial need, educational and professional goals, community involvement, and personal essay. The selection committee is recommending the following scholarship awards: • $2,500 each to Rodas Negussie and Kristina Te; • $1,500 each to Jessica Nguyen and Idan Sishu; and • $1,000 each to Siang Dim and Tasha Hong Ms. Navarro noted due to the requirement to notify recipients by April 30, staff are recommending this item be forwarded to the consent agenda directly following tonight's Committee of the Whole meeting. The scholarship recipients will be invited to the June 4, 2018 meeting. Ms. Seal asked the Councilmembers to read through the essays written by the scholarship recipients as it provides a glimpse into their futures and hearts. Mr. Robertson noted the cost of education continues to grow and financial need is high. One option youth don't often consider is military service, which can have multiple benefits, including education assistance, TuwiIa City Council Committee of the Whoe Minutes April 23, 2018 Page 8cfQ home loans and job training. Individuals can see what programs are available in advance before committing to military service. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE CONSENT AGENDA AT THE SPECIAL MEETING DIRECTLY FOLLOWING THIS COMMITTEE OF THE WHOLE. REPORTS a. Mayor Mayor Ekberg was not in attendance, b. City Council Councilmember Hougardy attended a South County Area Transportation Board meeting on April 17, 2018. The Board received an update on the Growth Management Act as it relates to transportation for the region and heard a presentation from a local coalition that aims to advance capital projects and policy recommendations. Ms. Hougardy highlighted examples of urban growth and growth impacts in Black Diamond, She aiso attended a Regonal Transit Committee meeting on April 18, 2018, where they continued discussion of One Center City and received updates on measures to reduce traffic in downtown Seattle. Councilmember Kruller showed the home jersey for the Seattle Geawo|vnu. She attended the inaugural game for the Seawoives at Starfire Stadium on April 22, 2018 with Mr. McLeod and Mayor Ekberg and presented the ball at the beginning of the game. She thanked the Seattle Southside Chamber of Commerce for the opportunity to open the event. Councilmember McLeod was present at the inaugural game for the Seawolves on April 22, 2018. He encouraged residents to attend the games. He reported that the Transportation and Infrastructure Committee met earlier tonight to discuss items such as the 2018 Overlay Program and flagging issues on Boeing Access Road. He announced the Frank Zepp Bridge on South 180th Street will be closed on the weekend of May 1 31h rather than in late Aprii as previousiy posted.A card has been sent to residents in the area updating them on the new closure date. c. Staff There was no report. d. Council Analyst There was no report. MISCELLAN EOUS Mr. |dan relayed a resident's concern regarding a rodent infestation at 5604 South 150th Street. He asked what the procedure is to ensure the issue is resolved. In additiun, he received the 2017 Fire Department Annual Report. He asked whether this report will be presented to the full Counci|, as the community may be interested in seeing a presentation. Ms. Seal stated she would work with the Chair of the Public Safety Committee and staff to make the report availabie to the public. Ms. KruUerehared that her neighborhood is experiencing a burgeoning rodent population as a result of feed used for livestock and poultry. This may result in a health hazard to youth, as her neighborhood is located near Cascade View Elementary. She asked the Councii whether it is possible to revisit the City's regulations as the Tukwila Municipal Code does not have any provisions to address this issue. Ms. Hougardy suggested having Code Enforcement look into this matter. Tukwila City Council Committee of the Whole Minutes April 23, 2018 Page 9 of 9 Discussion ensued on whether to move this issue through Code Enforcement or Committee. The Council agreed to pursue this issue through the Community Development and Neighborhoods Committee. ADJOURNMENT 8:56 p.m. COUNCIL PRESIDENT SEAL DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED. Verna Seal, Council President Andy Youn, Deputy City Clerk APPROVED BYTHE COUNCIL PRESIDENT: 5/7/18