HomeMy WebLinkAbout2018-06-11 Special Minutes - Financing the Public Safety Plan Work SessionWork Session - Financing the Public Safety Plan
Location: Council Chamber
Date: June 11, 2018
Start: 5:30 p.m.
End: 8:20 p.m.
City of Tukwila
City Council
PRESENT
City Council: Verna Seal, Dennis Robertson, Kathy Hougardy, De'Sean Quinn, Kate Kruller, Thomas McLeod,
Zak ldan
Mayor and Staff: Allan Ekberg, David Cline, Rachel Bianchi, Laurel Humphrey, Rachel Turpin, Bruce
Linton, Ric Mitchell, Jack Pace, Trish Kinlow, Kimberly Walden, Stephanie Brown, Peggy McCarthy, Gail
Labanara, Derek Speck, Rick Still, Jay Wittwer, Vicky Carlsen, Laura Crandall, Henry Hash, Joseph Todd,
Hari Ponnekanti
Staff is seeking Council direction on funding the Public Safety Plan, which has a significant budget
gap due to cost escalations associated with regional market conditions. The Finance Committee has
been reviewing this matter since the beginning of the year and have arrived at a recommendation.
Council President Seal called the meeting to order and welcomed attendees. She stated that the
purpose of the meeting is for the Council to hear the Finance Committee's recommendation,
deliberate the proposals, and arrive at consensus to potentially move forward to the June 18, 2018
Regular Meeting for formal action.
Staff presented its recommendation, which is for "Option E" with LTGO financing over 30 years. This
scenario includes construction of all facilities within the current timeline, dedicates $30M to shops,
and implements a State financing tool that allows cities to finance large apparatus over 10 years. Staff
believes that this scenario provides the greatest flexibility for the general fund as the impact is limited
to use of maturing debt. Finance Committee Chair Quinn presented the Committee's
recommendation, which is for "Option D" with 20 -year LTGO financing. This scenario removes Station
54, dedicates $30M to shops, and implements the State financing tool for apparatus. A comparison of
the two options is as follows:
LTGO Repayment
Method
Option
FS 51
FS 52
FS 54
A&E
JC
PW
LTGO
Bond
Range of
Annual Cash
Contribution
Capacity
from
maturing
debt
Total
GF
Cont.
Total
Debt
Service
D-20
(A&E
Financed)
$12M
$17M
$0
$15M
$68M
$30M
$40M
$325K - $1M
2026-2033
$500K -
$1.2M per yr
$22.2M
$37 M
E-30
$12M
$17M
$14M
$15M
$68M
$30M
$55M
$283K
in 2017
$830K - $2M
per yr
$51.9M
$70.6M
City Council - Public Safety Plan Financing June 11, 2018 - Pape 2
Chair Quinn described the process and noted the Committee thoroughly evaluated all funding tools
to arrive at its recommendation. He stated that the Council is committed to fully funding public safety
and has been exploring options for years, including possibly joining a regional fire authority. The
public also showed its commitment by approving the Public Safety Bond. The Committee was not
comfortable with 30 -year bond financing because it would bind future Councils to today's decisions.
He also acknowledged that the forecasts in the meeting materials show there will be significant, hard
decisions to be made as part of the 2019-2020 biennial budget deliberations.
At 6:18, Council President Seal called a 10 -minute recess due to disruptions in the Council Chamber. The
meeting resumed at 6:30 p.m.
Councilmembers asked clarifying questions and discussed the recommendations at length, focusing
on overall City budget concerns as well as future offramps for the Public Safety Plan projects.
Councilmembers made it clear that there would be additional decision points influenced by the
budget, with offramps at various design and construction decisions. Councilmember Robertson
asked that the Council receive monthly sales tax reports provided by the State of Washington.
Councilmember Idan asked for a list of City vacancies contributing to the 3% 2018 expenditure
underspend. Steve Goldblatt, the Council's Public Safety Plan Program Management Quality
Assurance Consultant, suggested that the Council allow design of Station 54 to continue along far
enough so that it can be included as a bid alternative. Eliminating Station 54 could make costs for
Station 51 and 52 go up marginally. Further design on 54 could cost around $250K.
Councilmembers Seal, Robertson, Hougardy, Quinn, Kruller and McLeod spoke in favor of the D-20
option recommended by the Finance Committee. Councilmember Hougardy expressed concern
about removing Station 54 without knowing the cost of retrofit. Councilmember Idan said he was not
in favor of either recommendation, stating he feels building projects should slow down until the
biennial budget is addressed.
Summary by LH