HomeMy WebLinkAboutFIN 2018-12-04 COMPLETE AGENDA PACKET City of Tukwila Distribution:
4 D.Quinn Mayor Ekberg
IV D. Robertson D.Cline
, 00. Finance Committee K. Kruller
0 R. Bianchi
' CI V. Seal C. O'Flaherty
,\-11 De'Sean Quinn, Chair K. Hougardy L. Humphrey
0 Dennis Robertson T. McLeod
Kate Kruller Z. Idan
1906
AGENDA
TUESDAY, DECEMBER 4, 2018—5:30 PM
HAZELNUT CONFERENCE ROOM
(At east entrance of City Hall)
Item Recommended Action Page
1. PRESENTATION(S)
2. BUSINESS AGENDA
a. Ordinances updating Fire and Parks Impact Fees. a. Forward to 12/10 C.O.W. Pg.1
Peggy McCarthy, Finance Director and 12/10 Special Mtg.
b. Status update on sale of Longacres parcel. b. Discussion only. Pg.13
Derek Speck, Economic Development Administrator
c. 2018 Finance Committee Work Plan. c. Discussion only. Pg.17
Laurel Humphrey, Council Analyst
3. ANNOUNCEMENTS
4. MISCELLANEOUS
Next Scheduled Meeting: January 2019
et>. The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk@TukwilaWA.gov) for assistance.
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190e INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy, Finance Director
CC: Mayor Ekberg
DATE: November 28, 2018
SUBJECT: Update Fire and Park Impact Fees for 2019
ISSUE
Update the fire and park impact fees pursuant to Tukwila Municipal Code 16.26.080 and
16.28.080, respectively.
BACKGROUND
The Tukwila Municipal Code calls for an annual fire and park impact fee increase based on the
increase, if any, in the Construction Cost Index (CCI) for Seattle (June-June) published by the
Engineering News Record (ENR). The Construction Cost Index for Seattle June 2017 to June
2018 published by the Engineering News Record was 7.1%
DISCUSSION
The fee schedules codified through exhibits to the ordinances, and referenced in the TMC have
been updated based on the 7.1% increase in the CCI index and included as attachments to the
draft ordinances.
RECOMMENDATION
The Council Committee is being asked to approve the draft ordinances and forward this item to
the December 10, 2018 Committee of the Whole and Special Meeting to follow that same night.
ATTACHMENTS
-Draft ordinances with updated Exhibits
-Copies of the current impact fees
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2
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NO.
2571 TO UPDATE THE FIRE IMPACT FEE SCHEDULE, AS
CODIFIED IN TUKWILA MUNICIPAL CODE CHAPTER 16.26
AS FIGURE 16-1, "FEE SCHEDULE;" PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council adopted Ordinance No. 2571 related to fire impact fees
on May 7, 2018; and
WHEREAS, Tukwila Municipal Code Sections 16.26.060, 16.26.070 and 16.26.080
provide direction on annual updates to fire impact fees;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Fire Impact Fee Schedule Amended. Ordinance No. 2571, Exhibit B,
is hereby amended to update the Fire Impact Fee Schedule codified as Figure 16-1, "Fee
Schedule," as attached hereto.
Section 2. 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 3. 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.
W:Word Processing\Ordinances\Fire Impact Fees-Annual update 11-28-18
:bjs Page 1 of 2
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Section 4. 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 January 1,
2019.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2018.
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:
Attachment: Updated Figure 16-1, "Fee Schedule," for Fire Impact Fees
(Exhibit B to Ordinance No. 2571)
W:Word Processing\Ordinances\Fire Impact Fees-Annual update 11-28-18
:bjs Page 2 of 2
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Figure 16-1 "Fee Schedule"
CITY OF TUKWILA
FIRE IMPACT FEE SCHEDULE
Exhibit B
FIRE
Impact
Fee
RESIDENTIAL- per dwelling unit
(a) Single family $ 1,790
(d) With fire sprinkler system installed $ 1,683
(b) Multi-family $ 2,062
COMMERCIAL/NON-RESIDENTIAL
- per 1,000 square feet of development
(c) Retail $ 2,005
(c) Office $ 784
(`) Industrial/manufacturing $ 167
MINN",AYtiN,'.NM/ I, N 1,1,NOW tititititititi
(a) Attached accessory dwelling units are exempt from impact fees.
(b) A structure with more than two dwelling units.
(c) See the more detailed land use descriptions in the Land Use Categories document.
(d) 6%discount for single family units with fire sprinkler system installed representing the portion of all
incidents that were fire only-as opposed to emergency medical incidents. Per 16.26.120, B. 9. of the
Tukwila Municipal Code, "A fee payer installing a residential fire sprinkler system in a single-family
home shall not be required to pay the fire operations portion of the impact fee."
5
6
[F 111
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NO.
2572 TO UPDATE THE PARKS IMPACT FEE SCHEDULE, AS
CODIFIED IN TUKWILA MUNICIPAL CODE CHAPTER 16.28
AS FIGURE 16-1, "FEE SCHEDULE;" PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council adopted Ordinance No. 2572 related to parks impact
fees on May 7, 2018; and
WHEREAS, Tukwila Municipal Code Sections 16.28.060, 16.28.070 and 16.28.080
provide direction on annual updates to parks impact fees;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Parks Impact Fee Schedule Amended. Ordinance No. 2572, Exhibit
B, is hereby amended to update the Parks Impact Fee Schedule codified as Figure 16-1,
"Fee Schedule," as attached hereto.
Section 2. 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 3. 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.
W.Word Processing\Ordinances\Parks Impact Fees-Annual update 11-28-18
:bjs Page 1 of 2
7
Section 4. 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 January 1,
2019.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2018.
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:
Attachment: Updated Figure 16-1, "Fee Schedule," for Parks Impact Fees
(Exhibit B to Ordinance No. 2572)
W:Word Processing\Ordinances\Parks Impact Fees-Annual update 11-28-18
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CITY OF TUKWILA
PARK IMPACT FEE SCHEDULE
EXHIBIT B
PARK
Impact Fee
RESIDENTIAL- per dwelling unit
(a) Single family
$ 2,859
(b) Multi-family $ 2,490
COMMERCIAL/NON-RESIDENTIAL
- per 1,000 square feet of development
(`) Retail $ 1,308
(c) Office $ 1,179
(d) K-12 Educational facilities $ 236
(c) Industrial/manufacturing $ 653
(a) Attached accessory dwelling units are exempt from impact fees.
(b) A structure with more than two dwelling units.
(c) See the more detailed land use descriptions in the Land Use Categories document.
(d) 80% discount for K-12 educational facilities.
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10
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Figure - - - - Schedule"
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CITY OF TUKWILA
FIRE IMPACT FEE SCHEDULE
Exhibit
Unadjusted Adjusted Fee FIRE
Fee fee (e) Reduction Impact
(e) (f) Fee
RESIDENTIAL- per dwelling unit
(� Single family $ 2,786 2,689 40% $ 1,672
*> With fire sprinkler system installed 1,571
m/ Multi-family $ 3,208 $ 3,124 40Y6 $ 1,925
COMMERCIAL/NON-RESIDENTIAL
' per 1,OOO square feet ofdevelopment
(C) Retail $ 3,120 $ 3,837 40% $ 1,872
<a Office $ 1,220 $ 1,145 40% $ 732
{') |ndostria|/nnanufactvring $ 259 $ 218 4096 $ 156
~—_.~~~~^^~~—~~~~-~~~~~~~__^~_~�~�^�
(») Attached accessory dwelling units are exempt from impact fees.
<N A structure with more than two dwelling units.
(c) See the more detailed land use descriptions in the Land Use Categories document.
(«) 696 discount for single family units with fire sprinkler system installed representing the portion ofall
incidents that were fire only-as opposed to emergency medical incidents. Per 16.26.12O, 8. 9. ofthe
Tukwila Municipal Code, "A fee payer installing o residential fire sprinkler system in a single-family
home shall not be required to pay the fire operations portion of the impact fee."
w From the "Tukwila Fire and Park Impact Fees Rate Study, 2018"
N
Fee reduction to retain economic competitiveness.
CITY OFTUKW|LA
PARK IMPACT FEE SCHEDULE
EXHIBIT
Unadjusted Adjusted Fee PARK
Fee(e) fee (e) Reduction Impact Fee
0 RESIDENTIAL_per dwelling unit
W Single family 4/449 $ 4/409 40% $ 2,669
(w Multi-family $ 3,876 $ 3,841 40% $ 2,325
COMM ERC|AUNON-RE3|D[NT|AL
' per 1,DOU square feet ofdevelopment
(c} Retail $ 2,035 $ 2,001 40% $ 1,221
(c) Office $ 1,835 $ 1,804 40Y6 $ 1,I01
(a) K-12 Educational facilities 220
W Industrial/manufacturing $ 1,017 $ 1,001 4096 $ 610
-----------—-1-1-1-1—-------~- ~ ^ ~
(») Attached accessory dwelling units are exempt from impact fees.
(@ A structure with more than two dwelling units.
(,) See the more detailed land use descriptions in the Land Use Categories document.
W> O096discount for K-12educotiona|facilities.
(e) "
Fronnthe ''Tukvvi|aFire and Park Impact Fees Rate Study, 2Ol8 .
<8
Fee reduction to retain economic competitiveness.
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o City of Tukwila
o Allan Ekberg, Mayor
908; INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Derek Speck, Economic Development Administrator
CC: Mayor Ekberg
DATE: November 28, 2018
SUBJECT: Status Update on Sale of Longacres Parcel
ISSUE
This memo is a status update on the potential sale of the Longacres parcel, which is the
approximately 3 acre parcel of city-owned, vacant land adjacent to Longacres Way and the
Sounder commuter rail station.
BACKGROUND
On March 5, 2018 the City Council approved Resolution #1927 which declared certain city-
owned properties as surplus, authorized the Administration to engage in a process to receive
offers and selecting the buyer, and established a process to set the minimum price for each of
the properties. One of those properties is the Longacres parcel, which is a 3.18-acre parcel of
vacant land located adjacent to Longacres Way across the street from the Sounder commuter
rail station (Assessor Parcel Number 242304-9034).
In September 2018 the City issued a Request for Proposals (RFP) for the Longacres parcel.
Proposals were due on October 31, 2018. The City received three proposals.
DISCUSSION
The purpose of this agenda item is to give the Council a status update on the process.
Following is an overview of the proposals, listed alphabetically.
Overview of Proposals
Alliance Momentum Pulte
Price $2,240,000 $1,600,000 $2,030,000
Concept Multi-family Multi-family residential 300 residential
residential over 5 levels of parking condominium flats on
for rail commuters. podium
Possibly office.
Income or Rent None None None
Restrictions
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INFORMATIONAL MEMO
Page 2
Staff reviewed the proposals in early November and coordinated with Leugar LLC, the owners
of the adjacent parcel, since one of the key criteria is the ability of the buyer to purchase and
develop both parcels concurrently. The following comparison is staff's opinion on how the
proposals rank on the criteria.
Comparison of Criteria
Criteria Alliance Momentum Pulte
Price Highest Lowest Middle
Fit with City's Vision Good Good Good
Tax Revenue/Cost of Good Good Good
Service
Sell with Adjacent To be determined To be determined Most likely
Property Owner
Over Half of Units Sold Yes Yes Yes
or Rented at Market
Rates
Financial Capacity Strong Strong Strong
Experience Strong Strong Strong
Alliance offered $2,240,000, Pulte offered $2,030,000, and Momentum offered $1,600,000.
When it adopted Resolution #1927, the Council established that the minimum price shall be its
fair market value as established by an appraisal conducted by an appraiser certified by the
State of Washington. The City contracted with Kidder Mathews to perform the appraisal. It
concluded the market value of the City's parcel is $1,560,000. Each proposal exceeded the
minimum price but Alliance ranked highest since it offered the highest price. Additional
considerations on price are explained later in this memo.
All of the proposals fit the City's vision for transit-oriented development adjacent to the
commuter rail station. Because residential condominiums have not been recently built in
Tukwila, Pulte's concept may be better for the City since it would offer a type of housing not
currently available. Pulte's target market would be young and mobile professionals who live in
downtown Seattle but are seeking lower housing costs.
All of the proposals have been ranked as the same in terms of the amount of tax revenue they
would generate for the City relative to the City's cost to provide service since they all include
multi-family residential. It is likely there would be some differences as the concepts get more
refined but at this time the concepts are so preliminary we don't have enough information to
provide a more detailed comparison on this criteria.
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INFORMATIONAL MEMO
Page 3
Leuqar LLC has reviewed the proposals and indicated a willingness to sell to any of the
applicants; however, Leuqar has not signed a letter of intent (LOI) with any of them at this time.
Pulte offered Lequar$6.5 million, which is the highest offer Leuqar received. That price is
acceptable to Leuqar but they understand the City received its highest offer from Alliance and it
does not make sense to enter into a LOI if the City is not interested.
All of the proposals meet the criteria for at least half of the residential units to be rented or sold
at market rates since none of them are proposing any rent or income restrictions.
All of the applicants have the financial capacity and experience to finance projects of this scale
and type.
All of the applicants are experienced developers with proven ability to design and construct
projects of this scale and type. Alliance is currently constructing multi-family residential in
Tukwila (on Baker Boulevard) and has built many quality multi-family residential developments
in the Seattle area and so would rank as best for experience in our local market with this type of
project. This would be a larger project than Momentum has built in Washington State but is
smaller than what they've built in China. Pulte is a large, national residential builder. They
have not built condo flats in the Seattle region but are planning a project that will include condo
flats in Bothell. Elsewhere in the U.S. they have built projects similar to what they've proposed
for the Longacres parcel.
Price Considerations
Because all of the proposals are good and the applicants are qualified, staff would typically
recommend the City enter into negotiations with Alliance since they offered the highest price.
However, since Pulte offered the highest price to Leuqar, it is unlikely that Leuqar would choose
to sell to Alliance. Both Alliance and Pulte would only complete the purchase of the City's
property if they can also purchase Leuqar's property.
All of the offers exceed the City's minimum price (based on the fair market value per the
appraisal) of$1,560,000. However, the City may want to insist on receiving the price that
Alliance offered. In addition, staff feels that the City should at least receive a fair price relative
to the price that Leuqar would receive based on each parcel's appraised value relative to the
appraised value of the total site. The City's appraisal also included a fair market value estimate
of Leuqar's parcel if developed on its own, and both parcels if developed together. Staff feels
the City should receive at least $2,174,314. That number is based on 25% of$8,530,000 (the
value if developed together). The 25% is based on the City's percentage of the fair market
value if both parcels were developed separately. See table below.
Comparison of Values
Appraised Value Proportional Value
If Developed Separately If Developed Together
City Parcel $1,560,000 25% $2,174,314 25%
Leuqar Parcel $4,560,000 . 75% $6,355,686 75%
Total $6,120,000 100% $8,530,000 100%
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INFORMATIONAL MEMO
Page 4
Next steps
Staff has communicated the current offer price differences to Pulte and Alliance and is waiting
for Pulte to match the price offered by Alliance. If that happens, staff will return to Council
seeking authorization to enter into exclusive negotiations with Pulte.
FINANCIAL IMPACT
This item would have no financial or budget impact at this time. If the City sells the property, it
would receive revenue based on the final sale price.
RECOMMENDATION
This item is being provided as discussion only.
ATTACHMENTS
None
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Tukwila City Council Finance Committee - 2018 Work Plan
Description Qtr Dept Action or Status/Notes
Briefing
1. Employee Compensation Policy 1-4 CNCL/HR A Complete
2. Public Safety Plan Financial Analysis&Plan 1 FIN A Complete
3. Revenue Considerations 2-4 FIN A Complete
4. UTGO Bond Issuance/Potential FIN A 2019
5. Impact fee code amendment 1-2 FIN A Complete
6. Fleet policy 2 Multiple A Fund equipment replacement/Postpone?
7. 501/502 Fund (Benefits) Update 2 HR B Actuarial report,then adjust 2018
8. Unbudgeted Equipment or Fixed Asset Items A 5/2 Committee requested it return with
Policy/Quarterly Report 2 FIN accompanying financial policy 2018
9. Capitalization policy 2 FIN A 2019
10. Parking tax penalty&Fee revision 3 FIN A Complete
11. Technology Advisory Services Contract 3 TIS A Complete
12. Strategic Plan Update-Budget Priorities 3 All A Complete
13. Indirect cost allocation model review 3 FIN B 2019
14. Business License Review and Possible Update 3-4 FIN A Complete
15. Priority-Based Budget Components
• Administration/Council
• HR
• Finance 3-4 Complete
• TIS
• Special Revenue Funds
• Healthcare/Leoff
16. 2019-2020 Priority-Based Budget 4 CNCL/FIN A Including schedule/process updates
17. Resolution cancelling uncollectible accounts 4 FIN A Complete
18. Resolution cancelling unclaimed property 4 FIN A Complete
19. Land Sale Process:Travelers Choice,Longacres Parcel, A
1 ED Complete
Allentown fire station p
20. Labor Relations and Interim HR Director Contracts 4 HR A Complete
21. Gambling Tax Update 4 FIN A Complete
22. Cashiering System Upgrade 4 FIN A Complete
23. 2018 Budget Amendment 4 FIN A Complete
24. Prosecution Services Contract 4 Mayor A Complete
25. Public Defense Services Contract 4 Mayor A Complete
City of Tukwila Updated November 28,2018
4 i.
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4s t fir`
o, Tukwila City Council Finance Committee - 2018 Work Plan
00
26. City Attorney Services Contract 4 Mayor A Complete
27. Sound Cities Association Lease 4 Mayor A Complete
28. Alliance One Lease 4 Mayor A Complete
29. Financial Policies Update 4 Council A Complete
30. Business License Services Agreement with State 4 FIN A Complete
31. Health Care Broker Contract 4 HR A Complete
32. Storm&Surface Water Billing Transition 3-4 FIN A Complete
33. Tax Levy Legislation 4 FIN A Complete
34. Budget Adoption Legislation 4 FIN A Complete
Standard Reports/Briefings Frequency Dept.
Revenue and Investment Reports Quarterly FIN
Financial Results Annual/Quarterly FIN
Department Budget to Actual Reports Monthly FIN
Fire/Police Budget Quarterly FIN/PD/FD
Committee work plan 2-4 x Council
Technology&Innovation Services Quarterly
Public Safety Bond Financial Oversight Committee Report(s) Complete;to full Council
City of Tukwila Updated November 28,2018