HomeMy WebLinkAbout2019-03-25 Committee of the Whole Minutes4V,q
Tukwila City Council Committee of the Whole Meeting
City Hall Council Chambers March 25, 2019 — 7:00 P.M.
MINUTES
COMMITTEE OF THE WHOLE
CALL TO ORDER/PLEDGE OF ALLEGIANCE
Council President Hougardy 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 Hougardy; Councilmembers Dennis Robertson, Verna Seal, De'Sean
Quinn, Kate Kruller, Thomas McLeod, Zak Idan.
CITY OFFICIALS
Allan Ekberg, Mayor; David Cline, City Administrator; Rachel Bianchi, Deputy City Administrator; Jack
Pace, Community Development Director; Nora Gierloff, Deputy Community Development Director; Bruce
Linton, Police Chief; Jason Konieczka, Emergency Manager; Dawn Judkins, Fire Training Captain; Peggy
McCarthy, Finance Director; Vicky Carlsen, Deputy Finance Director; Joseph Todd, Technology and
Innovation Services Director; Laurel Humphrey, Council Analyst; Andy Youn, Deputy City Clerk.
PUBLIC COMMENTS
Vanessa Zaputil, 15171 52nd Avenue South, is speaking on behalf of the Tukwila Pool Metropolitan Park
District's Board of Commissioners. The District maintains the Tukwila Pool and provides aquatic
programming for the community. They value their collaborations with the City and the Tukwila School
District and work hard to continue the partnerships that are in place. The Tukwila Pool is home to the
Foster High School swim team, which has grown and flourished. Ms. Zaputil thanked the Mayor for
recently presenting Michelle Simpson, Director of Aquatics Operations, with a Certificate of Appreciation
for her service. The recent successes of the District can be attributed to Ms. Simpson's efforts, work ethic,
and caring for the community. Ms. Simpson was instrumental in choosing her replacement, Brad
Harpman.
Joe Duffie, 5332 South 140th Street, thanked the Council and staff for their work on the 53rd Avenue South
project. Weather permitting, the street will be paved this week. He hopes speed bumps can be installed
later, as speeding is an issue.
Tim Murphy, 16045 48th Avenue South, noted there are new facilities being built for the Public Safety
Plan. He asked if these buildings will have charging stations for electric/plug-in vehicles. The City of
SeaTac has 48 plug-in charging stations, but he was not able to find information online concerning
Tukwila. In the future, all vehicles may be electric so it would be smart to plan ahead for this eventuality.
He referenced CleanTechnica.com, which is a website focused on cleantech news from around the world.
Mr. Murphy relayed municipalities can promote "green" vehicles by providing incentive programs for
vehicle owners.
Abdul Yusuf, 14120 Tukwila International Boulevard, is the business owner and manager for Eastside for
Hire. He is here to speak on behalf of the African businesses that are being displaced in Tukwila due to
the Justice Center. This painful process has had a negative impact on the East African community. They
immigrated into the United States in the early 1990s and rebuilt Tukwila International Boulevard by
establishing businesses and specialty services for the East African community. Mr. Yusuf expressed this
community was instrumental in helping to develop Tukwila. With the closure of these businesses, the
community no longer has gathering spaces for families and the elderly. He asked if the City has a
contingency plan for these community members, if the businesses are not able to meet their extension
deadlines.
Tukwila City Council Committee of the Whole Minutes
March 25, 2019 Page 2 of 16
Mehni Jumale, 15045 Tukwila International Boulevard, explained he is here on behalf of Tawakal Mini
Market and the other business owners that were impacted by the Justice Center. Tawakal Mini Mart has
secured a location in SeaTac and is currently going through construction and permitting. He thanked
Brandon Miles, Business Relations Manager, for his assistance in reaching out to the City of SeaTac to
expedite his construction permit. According to the settlement agreement he signed with the City of
Tukwila, he has until March 31st to move out. Due to the need to meet fire/building code requirements
with SeaTac, he is requesting a 3-month extension from Tukwila. He emphasized the business is working
day and night to ensure the project moves ahead.
Tawfik Maudah, 15001 Tukwila International Boulevard, owns and operates Bayview Motor Club. He
shared he has an agreement with the City to move out by the end of March 2019. He is willing to honor
that agreement but is requesting an extension. He was heavily involved in settlement negotiations with
the City, which took away time from finding a new location for his business. Additionally, many cities have
changed their zoning, making it difficult to relocate. He asked for additional time so he can either find a
different location or sell his remaining vehicle inventory.
In response to questions from Councilmember Idan, David Cline, City Administrator, explained the
Council authorized the Mayor to sign settlement agreements with the affected property and business
owners in early 2018. Administration has followed that policy direction and the City is honoring the
settlement agreements that were signed in August 2018 that stipulate the property and business owners
must move by March 31, 2019. The City has been in communication with all affected individuals and is
working closely with them to ensure there is a smooth transition.
Support existed to discuss this issue further under Miscellaneous.
7:30 p.m.
7:35 p.m.
Council President Hougardy called for a 5-minute recess to resolve audio issues.
Council President Hougardy reconvened the meeting.
PUBLIC HEARING
An ordinance amending the Development Agreement for the Airmark Apartments/Hotel Interurban.
7:36 p.m. Council President Hougardy opened the public hearing.
Nora Gierloff, Deputy Community Development Director, provided an overview of this item as follows:
The City has received a request for a third amendment to the development agreement (DA) between the
owners of the Airmark Apartments/Hotel Interurban and the City of the Tukwila for the building at 223 and
229 Andover Park East. This request is for another change to the development standards section of the
DA to allow installation of two additional 1,000 SF (Square Feet) wall signs to increase the visibility of the
Airmark Apartments. Currently, the Airmark's only signage is a canopy sign over the entry door, while
Hotel Interurban is advertised on wall and canopy signs.
The Community Development and Neighborhoods Committee discussed the request at their February 12
and March 12 meetings. The Committee recommended a 5-year time limit on the signs, at which time
they would be required to be removed unless the Council determines there is an ongoing need given the
state of the residential rental market.
The following options have been incorporated into the draft DA:
Number of new wall signs
2
Existing Hotel Interurban signs would remain in place
Size of signs
1,000 SF each
The west elevation would have a total of 1,500 SF of
signage including the existing Hotel Interurban sign
Location
Above the
parapet
The proposal is to have the "Airmark" portion extend
above the top of the wall
Tukwila City Council Committee of the Whole Minutes
March 25, 2019
Page 3 of 16
Time limit
5 years
Allow while the apartments are leasing up and
Southcenter is establishing as a residential area, then
reevaluate or remove
Performance guarantee
$30,000
Require a financial guarantee to ensure removal at
the expiration of the term
Copy limitation
Yes
Limit sign copy to "Airmark Apartments"
The Councilmembers asked clarifying questions as follows:
• Do the developers understand the 5-year time limit on the signs? Ms. Gierloff answered in the
affirmative.
• What kind of marketing and promotion assistance will be provided? The City's Economic
Development Administrator has met with the developers to discuss collaborating with Seattle
Southside Chamber of Commerce regarding joint tourism efforts.
• What is the process to deny/approve an extension after the 5-year time limit expires? The
developers will need to seek an additional amendment from the Council to change the current
terms of the Development Agreement.
• Did this Development Agreement go through the Planning Commission? Development
Agreements are not reviewed by the Planning Commission.
• Are these modified development standards applicable to other businesses? Development
Agreements modify the City's normal development standards, either permanently or for a specific
period of time, in exchange for a public benefit. Ms. Gierloff clarified another business would need
to apply and be approved for a Development Agreement.
• Has the City Attorney reviewed this Development Agreement? Ms. Gierloff answered in the
affirmative and noted the above amendments are within the scope of items that can be modified
through Development Agreements.
7:43 p.m. Council President Hougardy called for public comments.
There were no public comments.
7:43 p.m. Council President Hougardy closed the public hearing.
SPECIAL ISSUES
a. An ordinance amending the Development Agreement for the Airmark Apartments/Hotel
Interurban.
Councilmember Quinn indicated this item was discussed at the Community Development and
Neighborhoods Committee on February 12, 2019 and March 12, 2019. The committee members
forwarded this item with unanimous approval. He expressed the Committee did not take this item lightly.
The Councilmembers offered the following comments and asked clarifying questions as follows:
Councilmember Robertson relayed he is on the Community Development and Neighborhoods
Committee, and this Development Agreement is important because it is for a high -risk project. The
building in question is 19 stories and highly visible from a distance. The Committee wants to encourage
the success of the apartments for this project, as the Airmark Apartments/Hotel Interurban is innovative in
changing the usage of the Southcenter area to include residential. He explained the 5-year time limit on
the signs will allow the Council and City time to think about how the Sign Code should be amended to
include high-rise buildings.
Councilmember Seal stated she is also on the Committee and is in favor of approving this item. This is a
very unique project that is truly a pioneer for residential options in the Southcenter area by combining a
hotel and apartment in the same building. She explained Councilmember Quinn suggested language be
added to this amendment to speak to the uniqueness of this project. The Council has been trying to
achieve transit -oriented design in the Tukwila Urban Center. Housing is the missing component and this
project has spurred other residential developments in the area. There is a public benefit to increasing the
visibility of the Airmark Apartments.
Tukwila City Council Committee of the Whole Minutes
March 25, 2019 Page 4 of 16
Councilmember Kruller:
• Why is the time limit for the signs 5 years? Ms. Gierloff explained the City wanted to allow enough
time to amortize the cost of the sign while also not making the sign a permanent fixture.
• How bright will the signage be? The signs will likely be comprised of individually -illuminated LED
channel letters. The new signs will be similar in look and feel to the current signs for Hotel
Interurban. The City will ensure there is shielding on the backside of the sign where it projects
above the parapet to reduce unintended lighting.
• How is the City ensuring the lumens from the signs will not be a public nuisance? The City
currently does not have lumens limits/standards in the Tukwila Municipal Code. Ms. Gierloff
explained the City has received minimal complaints regarding sign lighting in the past. Staff would
ask that the developers be good neighbors and design the signs such that they would not cause
complaints.
Councilmember McLeod:
• When was the Sign Code last updated? The last time the Sign Code was significantly revised
was in 2010. It took over a year to complete the revision and approval process.
• Mr. McLeod noted when the Sign Code was last updated, the City did not have 19-story buildings.
As the Sign Code is currently not geared towards high-rise buildings, there will be new
opportunities and challenges to consider as the City reviews the Tukwila Municipal Code to
account for vertical growth.
Councilmember !clan spoke in favor of moving this item forward because he wants to help businesses
succeed.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING.
Council President Hougardy requested that the agenda be amended to consider item 4b and item 4c
concurrently, as these items are interrelated.
Council consensus existed to amend the agenda as requested above.
b. Discussion on Amendment #3 to contract #18-001 with Lydig Construction for Fire Station 51
to establish a MACC (Maximum Allowable Construction Cost) with a total contract cost not to
exceed $9,587,314, to include approval of use of sales tax of $968,318 and contingency of
$893,219.
c. Discussion on Amendment #4 to contract #18-049 with BNBuilders for the initial construction
phase of the Justice Center to establish a MACC with a total contract cost not to exceed
$10,894,458, to include approval of use of sales tax of $1,089,446 and contingency of up to
$1,089,446. (per agenda amendment)
Council President Hougardy explained the Council will hear a comprehensive staff presentation regarding
items 4b and 4c. To facilitate discussion, she relayed she will call on the Public Safety Committee Chair to
speak first, followed by the Committee members then the rest of the Council.
Rachel Bianchi, Deputy City Administrator, introduced Justine Kim, Program Manager with Shiels Obletz
Johnsen (SOJ), and Steve Goldblatt, the Council's PMQA (Program Management Quality Assurance)
Consultant. She indicated there are representatives from all user groups affected by the Public Safety
Plan present in the audience.
Ms. Bianchi utilized a PowerPoint to provide an overview as follows:
Bottom Line
• Both projects are on schedule
• Market conditions continue to be an issue; Sound Transit and WSDOT alone are currently
working on $5.6+ Billion on current projects
• Justice Center mini-MACC under budget; many large bid packages remain
• Fire Station 51 over budget
Tukwila City Council Committee of the Whole Minutes
March 25, 2019 Page 5 of 16
• The City has opportunities to address the overage at Fire Station 51
• The Administration recommends achieving the Fire Station 51 budget delta with Justice Center
savings, as well as funding key alternates
GCCM Process
• City had an RFP process for GCCM (General Contractor Construction Management) services for
Fire Stations and Justice Center
• GCCM joins the process early to inform team on cost impacts associated with design
• Once design is complete, GCCM creates specific bid packages for competitive bidding, per state
law
• GCCM promotes bid packages to encourage a high number of bidders
• Bid packages opened at a specific time; lowest responsive bidder must be chosen
Justice Center Mini-MACC
• The "mini-MACC" today includes:
o Demolition and abatement
o Foundations, structure and waterproofing
o Earthwork and utilities
o Allowance for shoring
o Allowance for contaminated groundwater
o Allowance for shop drawings and engineering for elevator, fire protection, mechanical
and electrical
o Formula -driven fees associated with the GCCM contract for negotiated support services,
MACC contingency, GCCM fee and Specified General Conditions
Service
Demolition & Abatement
Foundation/Structure/Waterproofing
Earthwork and Utilities
Allowance — shoring
Allowance —contaminated groundwater
Allowance - Shop drawings and engineering
Negotiated Support Services
MACC Contingency (2.5%)
GCCM Fee (5%)
Specified General Conditions
Total Mini-MACC Contract
Estimate
$910,582
$4,301,047
$5,057,079
Final Bid
Package
$192,995
$4,288,300
$4,874,410
$50,000
$20,000
$250,000
$221,283
$241,893
$506,944
$248,633
$10,984,458
Variartc
($717,587)
($12,747)
($182,669)
($843,003)
Ms. Bianchi clarified that when the budget for the Justice Center was developed, there were many
unknowns about the soils due to the project team's inability to access the site. The team assigned a large
allowance in the event of finding unsuitable soils. However, since that time, the City has been able to
complete the necessary testing and found the risk of contaminated soils is less than anticipated.
stice Center Mini-MACC totals:
Contract total
Washington State Sales Tax
Total mini-MACC
Mini-MACC under budget by:
Soft cost savings due to savings above:
Land acquisition under budget by:
Total under budget to date:
$10,894,458
$1,089,446
$11,983,903
$843,003
$147,525
$341,809
$1,332,337
Tukwila City Council Committee of the Whole Minutes
March 25, 2019
Page 6 of 16
Remainin• Services to be Bid
Samples of services needed (not comprehensive of bid packagesremaining)
Architectural casework
Exterior siding
Mechanical
Electrical
Insulation/GWB Assemblies
Miscellaneous specialties and equipment
Irrigation and landscaping
TOTAL Bid packages remaining (does not include formula -driven feed
Justice Center Budget
Item
A/E Services
Permits/Fees
Construction, including sales tax
Construction related costs
PM Services, including other professional services
Contingency, including construction and project
Contingency for potential contamination
Land Acquisition
Contingency for land acquisition
TOTAL
Budget ya'
$3,500,000
5700.000
$38,727,363
2,282,6.39
$2,112,596
$4,861,492
$750,000
$14,052,253
$1,550,000
$68,536,343
Committed
$3,141,729
5111.317
$563,671
5b2,398
$1,967,303
$13,679,370
$898,962
$20,953,976
$18,940,632
Remaining
$358,271
5588.683
$38,163,692
51, /2U,241
$145,293
$4,861,492
$750,000
$343,657
$651,038
$47,582,367
Fire Station 51 MACC
• MACC includes all of the construction costs
• MACC includes $312,015 in priority alternates
• As discussed previously, the project requires an additional $200,000 outside of the contract to
address an unforeseen issue with electricity due to PSE's inadequate as -built information
• With tax, electrical allowance, MACC, and priority alternates, Fire Station 51 is over budget by
$1,541,632
• Market conditions exacerbated by relatively small budget
Service
Earthwork/Utilities/Asphalt
Estimate
$661,444
Final Bids
753 900
Variance
$92,456
Site Concrete
$287,922
$391,500
$103,578
Concrete and Steel Structure, and Enclosure
$1,799,575
$1,798,890
($685)
Masonry
$253,878
$310,097
$56,219
Glazing Package
$276,415
$298,628
$22,213
GWB, Metal Framing and Insulation/Acoustical Ceiling
$467,883
$523,500
$55,617
Miscellaneous Package
$706,056
$704,500
($1,556)
Tile, Resilient Flooring and Traffic Coatings
$35,436
$38,500
$3,064
Fencing and Gate Enclosures
$172,553
$299,000
$126,447
Landscaping and Irrigation
$237,778
$262,451
$24,673
Electrical Contractor
$1,026,413
$1,235,963
$200,106
Mechanical
$1,398,430
$1,455,361
$56,931
Formula -driven costs
$1,382,509
Value Eneineerine List
($179,500)
Alternates
$312,015
Total
$9,587,314
$1,116,514
Tukwila City Council Committee of the Whole Minutes
March 25, 2019
Page 7 of 16
Ms. Bianchi shared the project team went through another value engineering process and identified other
project savings in the amount of $179,500. She cautioned it is unlikely there will be additional
opportunities for value engineering on this project.
Fire Station 51 Budget
item
A/E Services
Permits/Fees
Construction, including sales tax
Construction related costs
PM Services, including other professional services
Contingency, including construction and project
Land Acquisition
TOTAL $13,273,000 $1,954,050 $11,318,950
Budget
Committed"
Remaining
$1,292,781
S234.000
$9,396,000
5931,000
$526,000
$893,219
$1,236,572
S44.557
$165,000
5163,241
$344,681
$56,209
5189.443
$9,231,000
5767,759
$181,319
$893,219
Ms. Bianchi clarified the project team intends to preserve the contingency for Fire Station 51, leaving
nearly $900,000 in contingencies moving forward.
Fire Station 51 Alternates
Alternate
Fire hydrant in NE corner of rear apron
Additional paving for trailer parking
Four -fold doors
Fume hood for the shop
Rough in for new SCBA gear washer
Underground utilities for fueling station
Remainder of fueling station
Total alternates:
Estimate
$190,000
$60,642
$84,228
$8,434
$25,128
$180,648
$621,970 (this cost
includes the $180,648 ab
$990,402
Bid +C
$83,200
$51,350
$81,565
$18,121
$4,438
$142,812
$333,209
$714,695
Fire Station 51 Alternates - Administration and Fire Department Recommendations
Alternate
Bid Cost
Fire hydrant in NE corner of rear apron $83,200
Four -fold doors $81,565
Rough in for new SCBA gear washer $4,438
Underground utilities for fueling $142,812
station
Cumulative Total
$83,200
$164,765
$169,203
$312,015
*In addition, there is consensus among the project team that if there are additional contingency funds available towards the end
of the project, the first priority should be to add back the additional paving for trailer parking alternate at $51,350
Fire Station 51 Funding Options
• Use contingency funds from Fire Station 51
• Use savings from Justice Center mini-MACC and a transfer from the project's contaminated soils
budget
• Use the Council's contingency fund generated from 10% set aside of one-time funds
• Use General Fund ending fund balance
Other Considerations
• Fire Station 52 includes $750,000 alternate to build out the Administration space
• Fire Station 52 likely to experience a premium similar to Fire Station 51
Tukwila City Council Committee of the Whole Minutes
March 25, 2019 Page 8 of 16
• Justice Center full MACC will be done this spring; remaining bids not likely to see much savings
• Public Works master plan will be done in May
• Currently, $3 million in construction budget (including tax) to retrofit Heiser building; unknown at
this time what budget will be needed
Recommendation
• Proceed with the mini-MACC for the Justice Center, which is under budget
• The Administration recommends utilizing the $1,332,337 savings from the Justice Center and
$200,000 from the Justice Center's contaminated soils budget to achieve Fire Station 51's budget
delta
• The project team does not believe that there are any additional value engineering targets on Fire
Station 51 that would not affect the functionality of the building or the firefighters who work there
• The four alternates previously discussed totaling $312,015 are important and should be moved
into the base budget
• The Council's PMQA consultant agrees with these recommendations
Mr. Goldblatt added the MACCs are a natural progression in the projects, with incremental steps that
have been taken over the past few years and months. He has indicated these steps would be taking
place and while this is a big decision that will impact whether construction proceeds, the estimates have
been fairly good based on the market.
Justice Center Council Consideration
The Council is being asked to provide the Mayor the authority to:
• Sign a contract with BNBuilders for $10,894,458 for initial construction of the Justice Center
• Spend $1,089,446 in sales tax associated with the contract above
• If needed, approve the use of the proportional amount of the project's contingency fee, budgeted
at 10% of the total construction cost, or up to $1,089,446
Fire Station 51 Council Consideration
The Council is being asked to provide the Mayor the authority to:
• Move $1,541,632 from the Justice Center budget to cover the additional costs due to market
conditions and the four priority alternates
• Sign a contract with Lydig Construction for $9,587,314 for the Fire Station MACC
• Spend $968,318 in sales tax associated with the contract above
• If needed, approve the use of the contingency budget of $893,219
Council Review and Action
Fire Station #51
Fire Station #52
Justice Center
Public Works
Facility
MARCH
MACC
Alternates
APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBErc NOVEMBER
Mini-
MACC'
Master
Plan'
Retrofit
Design
Decision*
Retrofit
Constructio
Decision'
Ms. Bianchi explained the Public Safety Committee asked about the updated fiscal health of the City. The
following slides address the Committee's questions from the March 18, 2019 meeting.
Tukwila City Council Committee of the Whole Minutes
March 25, 2019
Page 9 of 16
Six -Year Financial Plan Update
2018 Protected YE 2018 Actuals (Preliminary)
11, 864, 536 11, 864, 536
726,038 1,462,615
12,590,574 13,327,151
10,838,667
She relayed the City was projected to end 2018 with approximately $12.6 million. With the preliminary
actuals, the City is ending better than expected with approximately $13.3 million. The $10 million amount
shown is the Council's minimum contingency per policy.
Original and Revised Budgets
Bond Budget
Justice Center
Fire Station 51
Fire Station 52
Fire Station 54
Fire Apparatus and Equipment
Total
Original Funding Sources
PSP Bond Measure
Fire Impact Fee
General Fund
Total
$28.6M
$11.4M
$5.6M
$7.3M
$29.9M
$82.8M
devised Butigitt
Amount
$77.3M
$4.7 M
$900K
$82.9M
$68.SM
$13.3M
$19.2 M
$1.6M
$14.9M
$117.5M
$39.9M
$1.9M
$13.6M
($5.7M)
($15M)
$34.7M
Funding delta was achieved and adopted
by the Council by including additional
funds from:
• Additional fire impact fees
• Land sales
• REET
Ms. Bianchi indicated page 101 of the agenda packet contained a typo on the Revised Budget total and
distributed handouts of the corrected slide. She explained the original Public Safety Bond budget was for
$82.8 million. This bond does not cover the Public Works facilities. The revised budget following the
Council's selection of the D-20 financing option is for $117.5 million.
The Public Safety Committee also asked what the impacts would be if decisions were delayed until
August, when the City has full bids (MACCs) for both Fire Stations and the Justice Center.
Potential Budget Impact of August Delay — Justice Center
Justice Center -total co
truction cost, excluding tax or contingency .s
Escalation of the market at 6% per annum in 5 months @ $110,000
Bidding in the middle of busy construction season premium -approx. 5%
Retaining the construction team for 5 months
$550,000
$1, 750, 000
$387,200
Potential rainy season earthwork risk (site water control, import/export, less $800,000
productive)
TOTAL
$3,487,200
A non -budgetary impact of delay would include the inability to continue coordinating construction with the
City of SeaTac on their Military Road project. The cities have been collaborating and SeaTac delayed their
project to meet Tukwila's construction schedule.
Tukwila City Council Committee of the Whole Minutes
March 25, 2019
Page 10 of 16
Potential Budget Impact of August Delay — Fire Stations
Fire Station S1-= total construction cost, excluding tax orContingency
Escalation of the market at 6% per annum in 5 months @ $40,000
Bidding in the middle of busy construction season premium —approx. 5%
Retaining the construction team for 5 months at $25,000 per month
Potential rainy season earthwork risk (site water control, import/export, less
productive)
TOTAL
Fire Station 52 - total construction cost, assuming start of construction in May 2020
Escalation of the market at 6% per annum in 10 months @ 52,500
Bidding in March of 2020 after contractors filled their workload premium —approx.
5%
Retaining the construction team for 10 months at $25,000 per month
TOTAL
$200,000
$400,000
$125,000
$400,000
$1,125,000
$525,000
$600,000
$ 2 50, 000
$1,375,000
Ms. Bianchi clarified if the City did delay these projects to August 2019, the project team would propose
delaying even further and would assume construction in May 2020 instead, as it would be cost prohibitive
to begin work during the rainy season.
Mr. Goldblatt shared the costs shown if decisions are delayed until August represent approximately $6
million that have no return on investment.
Councilmember Robertson referenced the Public Safety Committee minutes (pages 59-60 of the agenda
packet) and acknowledged nobody is comfortable with the high level of decision -making needed despite
inadequate information. When the Committee discussed delaying decisions until August, they did not
have information then about these costs associated with delay. The other impacts include the need to
rebid the projects (the current bids are only valid for 60 days) and losing the summer for earthwork. The
Committee wanted to bring this issue before the full Council for discussion and to hear additional ideas
and concerns.
Councilmember Kruller relayed constituents and stakeholders are concerned by the increasing costs of
the Public Safety Plan, which started at $77 million of voter -approved bond proceeds. 80% of these costs
are being borne by businesses in Tukwila. The City continues to try to find ways to fund the Public Safety
Plan facilities, which may result in reduced services to Tukwila residents for the next 20 years. She is
opposed to funding the Public Safety Plan over the next 30 years. In regard to the priority alternates that
were chosen, Ms. Kruller stated she has received some reassurances from Fire Department staff and
Union representatives that they agree with the final list of alternates. She expressed concern that costs
will continue to escalate due to the current construction market and the timing of these projects.
Councilmember Idan stated he spoke in favor of waiting until August to make decisions so there can be
more certainty regarding the project costs. He asked why Fire Station 51 and Fire Station 52 were not
scheduled to go through design and construction at the same time. The Council is making decisions
without knowing important components. By the time they receive more information, based on market
conditions, the projects are likely to be further over budget.
Ms. Bianchi explained the City was able to start the Fire Station 51 project sooner because the City
already owned that site. Without knowing where Fire Station 52 would be sited, it could not be designed
sooner. She also emphasized May 2020 will be the soonest the Council is likely to have full certainty of all
project costs due to the GC/CM recommendation to wait to excavate soil at the Fire Station 52 site until
the next dry season.
Mr. Goldblatt added from his perspective, completing one project and then moving onto the next is a good
way to parse out the work as opposed to increasing staffing and trying to complete both at the same time.
Tukwila City Council Committee of the Whole Minutes
March 25, 2019 Page 11 of 16
Additionally, the City could not proceed with the Fire Station 52 project as there was a public process to
decide where it should be sited.
Mr. Idan advocated for delaying decisions once additional information becomes available, as other factors
may affect what the real numbers look like for these projects. If one project is over budget, it may affect
the funding and budget of other projects.
Councilmember Seal:
• How long are the bids valid for? Ms. Bianchi explained bids are valid from 60 days of opening,
after which these projects will need to be rebid.
• Why is the delay extended from August 2019 to May 2020? Ms. Bianchi explained the August
time frame assumed a full MACC for Fire Station 51, which would mean earthwork would be
completed during the rainy season. Due to the terrain at that site, there is a lot of excavation and
soil moving that is needed. The Lydig project management team does not advise doing this work
during the rainy season and to wait until May 2020 instead.
• Has the City Attorney reviewed the option of transferring funds between projects? Ms. Bianchi
answered in the affirmative and shared there are approximately $900,000 in contingency funds
from Fire Station 51. The project team is not recommending these funds be used at this time, but
it is available and is already part of the adopted budget. Fire Station 51 can also be funded using
savings from the Justice Center mini-MACC and a transfer from the contaminated soils budget,
which has gone through legal review. Fire Station 51 and the Justice Center are eligible to use
Public Safety bond proceeds, REET (Real Estate Excise Tax) revenue, land sales revenue, and
fire impact fee funds. There is also a contingency fund of 10% of one-time funds that was
approved by the Council.
Ms. Seal indicated she is not in favor of a delay. The Council has a fiduciary responsibility to their
constituents to be good stewards, but they also have a responsibility to Fire and Police Department
personnel to ensure safe workplaces. She expressed these are decisions that should have been made
years ago as the buildings are in disrepair. This is the first time the City has embarked on such a large-
scale project. She is comfortable with the vetting completed by the Public Safety Committee and feels the
costs associated with delay outweigh the uncertainty of what the City may face. She emphasized that if a
natural disaster strikes or emergency occurs, and the City's first responders cannot reach the public, the
results would be tragic. While this process has not been smooth, it has been well -documented and is the
best course of action considering the circumstances.
Councilmember Quinn referenced the FACETS study that was conducted in 2017 to determine potential
locations for fire stations with criteria based on response times, population centers, and
geographic/environmental concerns. Mr. Quinn recently reviewed the study again and observed there is a
pronounced, continuous increase in calls for service, especially near Fire Station 51, that has factored
into these decisions. He is mindful that there are people who are and will be impacted. A dip in services
for an aging population is a potential calamity. He commended the Committee members for their thorough
questioning and ensuring these fiscal policies are legally sound.
• Has using the GC/CM model resulted in better budget controls compared to City projects that did
not use this approach? Mr. Goldblatt noted he is particularly fond of the GC/CM delivery method,
as one of the founders of this model in Washington State. Budget development, estimating,
designing, and bidding are all necessary steps in the process that can be time-consuming.
Construction should not be rushed and these facilities will be very good quality due to the GC/CM
delivery. Ms. Bianchi added there is a high level of collaboration that has led to increased
productivity and opportunities for direct input from end -users. The project team is now down to
minute details, such as the ramifications of skylights or appliances.
• What is the cost if there is a delay? Ms. Bianchi referenced pages 102-103 of the agenda packet
and stated the cost of not taking action until August would be approximately $6 million. These
estimates were calculated in partnership with the GC/CMs, Mr. Goldblatt, and City Administration.
Councilmember McLeod:
• It has been articulated that it will cost approximately $6 million to delay and re -bid in August.
What has been spent so far to obtain these current bids? Ms. Bianchi referenced page 73 of the
agenda packet and explained the current budget for the Justice Center is $68.5 million, with
Tukwila City Council Committee of the Whole Minutes
March 25, 2019 Page 12 of 16
approximately $21 million committed thus far. The bulk of the committed funds are due to land
sales and architectural/engineering services. Fire Station 51 has just under $2 million committed,
primarily for architectural/engineering services.
• What is the $6 million cost for an August delay comprised of? Ms. Bianchi explained the costs are
based on an estimated escalated market, a premium for bidding in the busy construction season,
retention of the construction project team, the potential risk of earthwork during the rainy season,
and rebidding.
• To the Council's PMQA Consultant: What is your recommendation? Mr. Goldblatt indicated the
Council has taken all the right steps thus far. The $6 million budget impact represents costs for
which there would not be any returns. Balancing certainty against additional costs in the future
may mean it is worth moving forward now when there is control of the costs the City currently
has. Mr. Goldblatt expressed he does not think waiting is a good use of funds.
Mr. McLeod remarked the Council has been making decisions along this process without full clarity.
However, their decisions have proven to hold true. He expressed he is in favor of moving this item
forward, as he does not want to lose sight of the fact that public safety personnel are working in subpar
conditions.
Council President Hougardy emphasized the importance of starting these projects and building high -
quality facilities. She expressed concern at delaying when there is a definite cost associated with inaction.
• Are the potential budget impacts shown calculated through August 2019 or May 2020? Ms.
Bianchi clarified if the Council desired complete certainty, bids should be delayed past August
due to the risk of working during the rainy season. This means bids will actually go out in May
2020. The budget impact of $6 million shown only estimates costs through August 2019.
Therefore, costs associated with a May 2020 delay would be even higher.
The Councilmembers offered the following comments:
• There is a public perception that FEMA (Federal Emergency Management Agency) supports
disaster events to a greater extent than actually provided. Local first responders are left doing the
majority of the work in these instances;
• In a City Facilities Needs Assessment and Feasibility Study that was conducted in 2014, Fire
Station 51 was found to be likeliest to fall down in an earthquake;
• According to these estimates, it will cost the City an additional $6 million to not take any action;
• Concerns were raised regarding ever -escalating costs and taxpayer fatigue;
• The City has procured strong, professional project teams and waiting a year may result in the loss
of these teams;
• Tukwila is building more public facilities than any other municipality in Washington State, and it
remains to be seen whether this is wise;
• The Council is being transparent about how much additional funds the City is spending;
• This is not a good stopping point for the Public Safety Plan.
Councilmember Idan asked the following clarifying questions:
• Is the cost of retaining the construction team referring to the GC/CM staff? Ms. Bianchi answered
in the affirmative and explained there will be a monthly cost to retain the project teams for both
the Justice Center and Fire Station 51.
• How long did it take the project team to determine the potential budget impact of delay and how
accurate is the cost estimate? Ms. Bianchi replied that after the March 18 Public Safety
Committee meeting, the project team and City Administration worked together to determine the
budgetary impacts over the course of several days. Mr. Goldblatt added the cost estimate is an
educated guess created by experienced industry professionals.
• How was the estimate created for the Public Safety Plan bond measure? Mr. Goldblatt relayed
the City did its best in estimating costs for the bond measure. However, it was only an estimate
until the City engaged a professional project management team.
• What is the window for the dry season and how long will it take to complete the earthwork? Ms.
Bianchi stated the dry season is May 1 through October 1. Earthwork is estimated to take 4
months for Fire Station 52.
Tukwila City Council Committee of the Whole Minutes
March 25, 2019 Page 13 of 16
• Did the project team consider the feasibility of expediting Fire Station 52 to parallel with the
Justice Center and Fire Station 51? Ms. Bianchi indicated beyond cost, the issue lays with staff
capacity. Weinstein AU has dedicated architects to work on Fire Station 52. In addition, due to the
permit process, expediting the design process is unlikely to be feasible. Justine Kim, Program
Manager with Shiels Obletz Johnsen, stated the project team has just recently completed
submitting the permit package for Fire Station 52 after schematic design. She emphasized the
difficulty of expediting Fire Station 52 and relayed that at this point, it will not be possible to
collapse 6 months of public process and hearings into 2 months.
Mr. Idan expressed he agrees these facilities are necessary, however, he is uncomfortable making
decisions without certainty regarding numbers. It is important to know the totality of the program to
mitigate financial risks. He voted against the D-20 option when it came before the Council as a funding
option due to the lack of certainty at that time. He stated it is in the best interests of the City to obtain a full
picture of the Public Safety Program in order to make decisions.
Councilmember Quinn suggested utilizing the Public Safety Bond Financial Oversight Committee more
effectively moving forward, as the budgets will bear further scrutiny.
COUNCIL CONSENSUS EXISTED TO FORWARD ITEM 4B AND ITEM 4C TO THE SPECIAL
MEETING DIRECTLY FOLLOWING THIS COMMITTEE OF THE WHOLE.
d. Discussion on an amendment to the contract with SoundEarth for remedial excavation
activities at the Justice Center project.
Ms. Bianchi indicated that due to a cancelled Public Safety Committee meeting and extended agenda
items on the Finance Committee, this item is coming directly to the Committee of the Whole for
deliberation.
Staff are requesting that the Council approve an amendment to the contract with SoundEarth Strategies,
Inc., which was hired to perform Environmental Site Assessment (ESA) services in connection with the
Public Safety Plan.
Amendment No. 5 adds services for construction observation for remedial excavation activities at the
Justice Center site, and extends the duration of the contract to December 31, 2021. These additional
services include preparing a soil management plan, excavation observation, monitoring well
decommissioning, groundwater well installation, groundwater sampling, and reporting to the Washington
State Department of Ecology. These are anticipated expenditures and are included in the Council -
approved project budget. Staff is not asking for additional budget authority.
The table below shows the contract with amendments to date, contingency, and the new total. The
amounts shown below are all within the approved project budgets.
Original Contract Amount - research of potential
contamination to JC and FS 52
$15,000.00
Amendment No. 1 - research of potential contamination and
soils testing to PW, soils testing to JC, research of potential
contamination to FS 54
$111,937.00
Amendment No. 2 - soils testing to FS 52/FS54, Additional soils
testing to JC
$36,325.00
Amendment No. 3 - Additional Due Diligence
$0.00
Amendment No. 4 - Extend duration of contract
$0.00
Contract Amount to Date
$163,262.00
Amendment No. 5 - Remedial Excavation Observation of JC
Site
$85,770.00
New Contract Amount
$249,032.00
Contingency (10%)
$8,577.00
Total
$257,609.00
Tukwila City Council Committee of the Whole Minutes
March 25, 2019 Page 14 of 16
The Council's PMQA Consultant has reviewed these documents and provided his concurrence.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE SPECIAL MEETING CONSENT
AGENDA DIRECTLY FOLLOWING THIS COMMITTEE OF THE WHOLE.
e. Discussion on an amendment to the contract with Shannon and Wilson for geotechnical
construction services for the Justice Center project.
Ms. Bianchi stated that due to a cancelled Public Safety Committee meeting and extended agenda items
on the Finance Committee, this item is coming directly to the Committee of the Whole for deliberation.
Shannon & Wilson was hired to perform geotechnical evaluation services in connection with the Public
Safety Plan. These are done in two phases: Phase I was the preliminary geotechnical evaluation and
Phase II was a more detailed "feasibility" geotechnical evaluation.
Amendment No. 3 adds additional geotechnical construction services at the Justice Center site and
extends the duration of the contract to December 31, 2020. These additional services will be broken down
into three tasks: additional geotechnical recommendations for temporary shoring, construction document
review, and construction observation. The expenditures associated with these tasks are anticipated and
are included in the Council -approved project budget.
The table below shows the contract with amendments to date, contingency, and the new total.
Original Contract Amount — preliminary and more
detailed "feasibility" geotechnical evaluations
$37,700.00
Amendment No. 1 — extra mobilization costs plus
contingency
$11,000.00
Amendment No. 2 — extend the duration of contract
$0.00
Proposed Additional Geotechnical Construction Services
(Amendment No. 3)
$31,080.00
Subtract Unused Contingency from Amendment No. 1
($10,000.00)
Amendment No. 3 (total)
$21,080.00
New Contract Amount
$69,780.00
The PMQA Consultant has reviewed these documents and provided his concurrence.
Councilmember Kruller remarked on the frequency of contract amendments coming before the Council
and asked if this is due to incorrect estimation.
Ms. Bianchi clarified these are different, individual services that build on each other to avoid moving
forward a very large contract for several services at once.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE SPECIAL MEETING CONSENT
AGENDA DIRECTLY FOLLOWING THIS COMMITTEE OF THE WHOLE.
REPORTS
a. Mayor
Mayor Ekberg attended the Cascade Water Alliance 20th Anniversary celebration which focused on water
supply resiliency and disaster preparation planning with the cities of Everett, Seattle, and Tacoma. A copy
Tukwila City Council Committee of the Whole Minutes
March 25, 2019 Page 15 of 16
of the Readiness and Resiliency Plans will be distributed to the Council later this week. He participated in
a Senate hearing on retaining streamlined sales tax mitigation. Mayor Ekberg attended the Korean
American Coalition's 2019 Community Kick Off at the Ramada Inn, where South Korean General Consul
Lee was in attendance.
b. City Council
Councilmember Robertson shared that Mr. Murphy, who spoke under Public Comments, is a neighbor
who recently came to speak to him regarding "green vehicle" options in Tukwila. Mr. Murphy expressed
concern about the impact climate change will have on future generations.
Councilmember Quinn relayed he attended a Washington State Criminal Justice Training Commission
meeting where the Commission hosted the families of those who have been killed through the actions of
Police Officers. He thanked Police Chief Bruce Linton for creating a space in which members could
articulate their concerns.
Council President Hougardy attended the monthly SCATbd (South County Area Transportation Board)
and King County Regional Transit Committee meetings, where they received updates on Metro Connects,
the regional implementation plan for bus routes and transportation options in King County. She relayed
King County Metro's Community Connections program is continuing to discuss mobility solutions for the
Allentown neighborhood.
c. Staff
There was no report.
d. Council Analyst
There was no report.
MISCELLANEOUS
Councilmember Seal explained the Council and City Administration are two separate bodies of
government, where the Council enacts policies and the Administration executes those policies. From her
perspective, the Council was not given credit for the following significant policy items: The Rental Housing
Inspection Program, which was originated by Councilmember Robertson and has been worked on by the
Council; The pedestrian safety improvements at South 140th Street, which the Council advocated for and
moved forward; and Ordinance No. 2587, which Ms. Seal drafted and the Council passed due to the need
to build trust between the community and local law enforcement. It was recently brought to her attention
that the Mayor took responsibility for these items; it is not appropriate for any one person to have that
credit as Administration and the Council works together.
Councilmember Idan shared that in a recent visit to Starfire Sports, members of the group he was with
paid a $5 parking fee although they are Tukwila residents. He clarified these individuals displayed
identification showing they are Tukwila residents. He asked Administration to follow up on this issue as it
is his understanding that Tukwila residents do not pay the parking fee.
Council President Hougardy referenced the request made by business owners who spoke under Public
Comments to extend their deadline to move out by March 31.
The Councilmembers exchanged comments as follows:
• The request to extend the move -out deadline of March 31 would involve renegotiating the terms
of the contract and stepping outside of the terms of contracts all parties have agreed to;
• The Council does not negotiate contracts as it is not a legislative function and reopening
contracts is not within the Council's purview;
• Extending the use of those properties is likely not feasible and would impact the Justice Center
project significantly;
Tukwila City Council Committee of the Whole Minutes
March 25, 2019
Page 16 of 16
• It is important that the City Attorney be present in these kinds of discussions due to the liability to
the City;
• Acknowledgement that the business and property owners have committed to the deadline to
move out by March 31, and there have been unforeseen obstacles hindering their ability to
comply;
• There may be other resources available to aid impacted business and property owners, and
Administration may be able to provide greater relocation assistance to relieve the pressure on
impacted individuals.
ADJOURNMENT
10:05 p.m. COUNCIL PRESIDENT HOUGARDY DECLARED THE COMMITTEE OF THE WHOLE
MEETING ADJOURNED.
Kathy Hougardy, (✓opncil P
Andy Youn; Deputy City Clerk
APPROVED BY THE COUNCIL PRESIDENT:
AVAILABLE ON THE CITY WEBSITE:
4/18/2019
4/18/2019