HomeMy WebLinkAboutCOW 2019-06-24 Item 4C - Public Safety Plan - Fire Station 52 FundingCOUNCIL AGENDA SYNOPSIS
Initials -- ------------
Meeting Date
Prepared by
Ma or'.r review
Council review
06/24/19
RB
ITE
NFOR
ATION
ITEM No.
4.C.
S'i \i I^ SPONSOR: CH EL BIANCHI
ORIGINAI,A(l?ND,1 D.1TI:c 06/24/19
AGENDA ITEM TITLE Update
on Funding Options for Fire Station 52
CATI?)RY Dzrcus:rion
06/24/19
❑ Motion
Mtg Date
❑ ReJolution
11-Ttg Date
E Ordinance
Mtg Date
�, Bid..4ward
❑ Public Hearing
Mtg Date
■ Other
Mtg Date
Mtg Date
Mtg Date
SPONSOR ❑Council ►1Mayor EHR EIDCD ❑Finance C.Fire CTS ❑Pe' R ❑Police DPW ❑Court
SPONSOR'S Discussion with the Council on funding options for Fire Station 52
SUMMARY
REVIEWED BY E C.O.W. Mtg. ❑ CDN Comm
❑ Trans &Infrastructure ❑ Arts Comm.
DATE: 06/ 10/ 19
l 1 Finance
Comm. ❑ Public Safety Comm.
Comm. ❑ Planning Comm.
CHAIR: MCLEOD
❑ Parks
COMMITTEE
RECOMMENDATIONS:
SPONSOR/ADMIN.
CommrI'I'•I:
Mayor's Office
Forward to Committee of the Whole; Discussion only
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
06/24/19
MTG. DATE
ATTACHMENTS
06/24/19
Informational Memorandum updated 6/5/19
D-20 Funding Model
Minutes from the Finance Committee meeting of 6/10/1,9
45
46
Allan Ekberg, Mayor
290
TO:
Administrative Services Department - Rachel Bianchi, Deputy CityAdministrator
INFOR ATIONAL E ORANDU
Finance Committee
CC: Mayor Allan Ekberg
FROM: Rachel Bianchi, Deputy City Administrator
DATE: Updated June 5, 2019
SUBJECT: Fire Station 52 Funding
ISSUE
Staff provided the Public Safety Committee with an update on the status of Fire Station 52, which
will also be discussed at the May 28, 2018 Committee of the Whole meeting. The Schematic
Design estimate shows that Fire Station 52 is over the revised budget. The Public Safety
Committee agreed that the Finance Committee will look at options for funding Fire Station 52 and
ultimately provide a recommendation to the full Council. Staff is seeking discussion and direction
on the topic to bring back a proposal to the next Finance Committee meeting.
BACKGROUND
The new Fire Station 52 is to be located on the City Hall Campus just north of the 6300 Building in the
upper parking lot. With Fire Station 51 moving further south, the FACETS study determined that it
would be important for Fire Station 52 to move further south to maximize coverage and response times
throughout the City. Fire Station 52 will become the new headquarters station and thus is a larger,
more complex building than Fire Station 51.
With the Schematic Design phase complete, the project team began estimating the project. In addition,
the group used the bids received for the Fire Station 51 project, currently under construction, to inform
the estimating process. Fire Station 52 is above the adjusted budget adopted by the Council in July of
2018. The project team spent considerable time and discussion identifying places to value engineer
the project in order to ensure the best value for the City. The team identified nearly $670,000 in
savings that would not affect the functionality of the building. However, it was determined that no
additional savings could be found that would not significantly impact the building's usability and long-
term functioning.
The construction budget is estimated to be over budget by $4.23 million once construction costs, sales
tax and contingency are accounted for. The full build out of the Administration space, which has been
carried as an alternate since early on in the project, is expected to cost an additional $1.25 million,
which would include construction, sales tax, contingency and furniture, fixtures and equipment (FF&E).
While this percentage is higher than the overage on Fire Station 51, this project is significantly more
complex. It is a two-story building requiring much more structural support and use of steel and has a
significant earthwork component.
The most volatile costs on this project are associated with earthwork. Because of the current market,
the unknowns about what contractors would potentially bid on this project and the very real escalation
Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWAgov
47
in the market, particularly for earthwork services, the project team elected to include a 30% contingency
in the budget for earthwork alone, which is over $1 million.
Due to the significant amount of value engineering work, this most recent estimating phase took longer
than normal, and the project is now finished up with the Design Development (DD) phase. Both
Robinson, the outside estimators, and Lydig will be doing another round of estimating on the DD plan
set to refine these numbers. As with any project, the final numbers will be known once the bid results
are received and compiled.
DISCUSSION
There is a suite of options available to fund the $4.23 million gap:
• Streamlined Sales Tax (SST) Mitigation payments, which were unanticipated, will be restored
over the next four years, estimated at approximately $4 million. Previously the State Legislature
had ended the SST mitigation payments and the City did not include them in the budget moving
forward from their sunset date of 2019. However, during this past session, the Legislature
restored the payments for another four years. Because these are one-time funds that should
not be programmed for ongoing programs or personnel, using this for a one-time cost like
construction of Station 52 makes sense.
• Unallocated Fire Impact Fees from 2018, totaling $167,000.
• Council's 10% one-time revenue contingency, totaling $525,000.
• 2019/2020 ending fund balance in excess of Council policy.
• Additional debt issuance.
• Dedication of project sales tax.
• Other options explored during the 2018 Finance Committee D-20 discussions.
The project continues to be constrained by market escalation, and the timeline is critical to ensure the
ability to contain costs. The project team is very aware of the importance of utilizing the summer
months to do the earthwork and site utilities in order to not have additional costs associated with
doing this work in the wet months. In order to achieve this goal, staff will be bringing the project
forward in two phases — similar to what was done with the Justice Center — in a "mini-MACC" and
total MACC under the following timeline:
• Mini-MACC. Earthwork, site utilities, electrical, structural
o July 1: Public Safety Committee
o July 8: Committee of the Whole
o July 15: Full council consideration
• Final MACC. Building construction
o October 28: Public Safety Committee
o November 11: Committee of the Whole
o November 18: Full Council consideration
While it will be necessary that the City has identified how to fill the $4.23 million gap before starting
the "mini-MACC," decisions on funding the alternate of the Administration build -out do not need to be
made until Fall and will be informed by how much of the earthwork contingency is used in the mini-
MACC, as well as the progress of the other Public Safety Plan projects.
RECOMMENDATION
Staff is seeking the Committee's direction on how to fund the Fire Station 52 gap. Staff would then
return to the June 10 Finance Committee with a funding proposal.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
48
UPDATE JUNE 5, 2019
Staff has updated the "D-20" funding model to indicate how the funding gap for Fire Station 52 could be
achieved (see attached). Per the direction of the Finance Committee at the May 28 meeting, staff
utilized the following revenue sources to achieve this goal:
• $167,000 in Fire Impact Fees collected in 2018 but not allocated.
• The unanticipated Streamlined Sales Tax Mitigation payments that were added back in the 2019
legislative session,
The following are the changes from what was adopted in the 2019/2020 budget and previously seen in
the "D-20" model were incorporated into the attached draft:
• Line 13: Fire Impact Fees were increased by $167,000 in 2019 to account for the $167,000 in
Fire Impact Fees collected but not allocated in 2018.
• Line 17: Streamlined Sales Tax Mitigation payments included as a new revenue source.
• Lines 28 and 29: Justice Center expenditure reduced, and Fire Station 51 expenditure increased
per Council action during the Fire Station 51 MACC and Justice Center "mini-MACC" approval.
• Line 31: The $4.23 M gap for Fire Station 52 was added as a separate line item.
• Line 33: Apparatus funding in 2018 was reduced to what was actually spent; additional funding
put in the out years as a place holder until apparatus and equipment schedule is updated.
With these updates, funding the Public Safety Plan, as modified in 2018, remains attainable and a
positive fund balance is achieved each year. As has been previously stated, the funding model is an
iterative process that will continue to be updated as the City progresses in funding the Public Safety
Plan.
Finally, the project team has now completed the Design Development phase and both Lydig
Construction and the independent estimators, Robinson, have completed the latest round of estimating.
The $4.23 M gap for Fire Station 52 was validated in this effort.
RECOMMENDATION
Staff recommends funding the gap for Fire Station 52 with the two sources identified above. Once bids
for the mini-MACC are received the full Council will be able to make a final decision.
Staff is seeking consensus from the Committee to move to the June 24 Committee of the Whole for
Council discussion.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
49
50
PUBLIC SAFETY PLAN - Financial Framework - Scenario D - 20 Year Debt with Apparatus Financed
Updated June 5, 2019
B
D
E
F
G
H
I
J
K
L
M
N
0
P
Q
R
S
1
actual
actual actual
projected budget
budget
2
TOTAL
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
9
Revenues:
10
UTGO bond proceeds, Voted
77,385,000
36,709,954
40,675,046
11
LTGO bond proceeds, Councilmanic
45,000,000
20,000,000 +,
25,000,000
1
I
12
Fire Impact fees & deposit - Segale
4,750,000
500,000
300,000
300,000
300,000 ;
300,000
300,000 ;
300,000
300,000 ;
300,000
300,000 °
300,000
300,000
300,000
300,000
13
Fire Impact fees other
7,984,000
1,017,000
400,000
667,000
500,000 ;
300,000
300,000 !
300,000
300,000
300,000
300,000 I
300,000
300,000
300,000
300,000
14
F301, Lnd & Prk Acq contribution
3,000,000
3,000,000 ;
15
Property/land sales
12,889,300
a
4,889,300
1,000,000 I
2,000,000
5,000,000 ,
16
REET 1
10,500,000
500,000
500,000
500,000 I
500,000
500,000 £ 500,000
500,000 "
500,000
500,000 '
500,000
500,000
500,000
500,000
17
Sales Tax Mitigation payments
4,017,452
- 1
251,091
1,004,363 I
1,004,363
1,004,363 I
753,272
18
Interfund transfer in (out)
1,391,854
1
141,854
1,250,000 i
-
- 1
19
Investment earnings
1,211,391
9,562 I
258,283
503,546 ;
300,000
100,000 ;
40,000
20
Annual contribution to balance
7,467,650
1
141,854
- 1
-
-
-
- I
-
- i
-
1,000,000 I
1,000,000
1,000,000 !
1,000,000
1,000,000
21
Additional capacity from maturing,
existing debt
14,858,560
i
831,000
831,000
498,600
498,600
880,800
1,196,400
1
717,840
717,840
717,840
717,840
717,840
25
Revenue Total
190,455,208
36,719,516 i
2,058,992
25,953,546 1
72,582,437
4,235,363 ;
4,975,363
7,602,963 1
2,351,872
1,980,800 !
2,296,400
2,817,840 1
2,817,840
2,817,840 1
2,817,840
2,817,840
26
% Dbt Svc capacity used for PSP
- j
-
-
100%
60% j
60%
60%
60%
60%
60%
60% I
60%
60%
27
Project Expenditures
28
Justice Center
66,994,711
123,833
431,266
17,868,999 !
26,596,000
21,974,613 1
-
-
29
FS 51
14,814,632
59,853 1
254,484
1,145,000 i
9,416,000
3,939,295 1-
30
FS 52
19,260,000
8,256 !
161,299
771,000 ;
2,963,000
13,749,000 ;
1,607,445
-
-
31
FS 52 SD Est Delta
4,230,000
4,230,000
I
32
FS 54
1,502,000
- I
142,791
1,062,209 1
297,000
- t
-
I
33
Apparatus & equip
10,075,303
14,447 1
573,651
3,373,824 a
624,578
368,146 1
276,621
583,525 1
507,480
287,091 1
384,755
414,980 1
806,277
109,936 ;
758,212
991,778
34
Apparatus financing
5,750,493
I
270,250 !
270,250
270,250
270,250
270,250 1
575,049
575,049
35
Shops
30,000,000
- I
283,709
22,336,000 ;
2,879,000
4,501,291 I
39
Project Expenditures Total
152,627,138
206,389
1,847,199
46,557,032 I
47,005,578
44,532,345 I
1,884,066
583,525 I
507,480
557,341 f
655,005
685,230 I
1,076,527
380,186 I
1,333,262
1,566,827
40
1
41
Debt Service
1
0
full DS I
I
I
1
42
Debt service LTGO
58,168,554
239,026
804,200
804,200 i1,500,000
3,232,829 1
3,232,829
3,232,829 ;
3,232,829
3,232,829 1
3,232,829
3,232,829 I
3,232,829
3,232,829
43
Utility Fds pay rent = 50% of dbt svc
(21,931,081)
(119,513)1
(402,100)
(402,100)'
(562,500)
(1,229,431)!
(1,229,431)
(1,229,431)'
(1,229,431)
(1,229,431)!
(1,229,431)
(1,229,431)
(1,229,431)
(1,229,431)
44
GF Debt Service Total
36,237,473
- E
-
119,513
402,100
402,100 j
937,500
2,003,398 '
2,003,398
2,003,398 i
2,003,398
2,003,398 9
2,003,398
2,003,398 i
2,003,398
2,003,398
45
Expense Total
188,864,611
206,389 #
1,847,199
46,676,545 j
47,407,678
44,934,445 j
2,821,566
2,586,922 i
2,510,878
2,560,739 j
2,658,403
2,688,628 j
3,079,925
2,383,584 t
3,336,659
3,570,225
46
52
Annual Surplus (Shortfall)
1,590,597
36,513,127 1
211,793
(20,722,999)1
25,174,759
(40,699,082)1
2,153,797
5,016,041 1
(159,005)
(579,939)1
(362,003)
129,212 I
(262,085)
434,256 1
(518,819)
(752,385)
53
Beginning Carryover (Shortfall)
-
- 1
36,513,127
36,724,920 '
16,001,920
41,176,679 ;
477,597
2,631,394 1
7,647,435
7,488,429 1
6,908,490
6,546,487
6,675,700
6,413,615 '
6,847,870
6,329,051
54
Ending Carryover (Shortfall)
1,590,597
36,513,127 3
36,724,920
16,001,920 ;
41,176,679
477,597E
2,631,394
7,647,435
7,488,429
6,908,490 ^
6,546,487
6,675,700 1
6,413,615
6,847,870 =
6,329,051
5,576,666
Ul
6/5/2019
Scenario D-20 updated May 2019
1 of 2
PUBLIC SAFETY PLAN - Financial Framework - Scenario D - 20 Year Debt with Apparatus Financed
Updated June 5, 2019
B
T
U
V
W
X
Y
Z
AA
AB
AC
AD
AE
AF
AG
AH
Al
1
2
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
9
Revenues:
I
I
10
UTGO bond proceeds, Voted
I
i
1
I
11
LTGO bond proceeds, Councilmanic
l
i
i
i
i
I
i
9
i
12
Fire Impact fees & deposit - Segale
350,000
13
Fire Impact fees other
300,000
300,000 I
300,000
300,000 s
300,000
300,000 i300,000
300,000
14
F301, Lnd & Prk Acq contribution
{
15
Property/land sales
16
REET 1
500,000
500,000 I
500,000
500,000 '
500,000
500,000 l
500,000
500,000 "
17
Sales Tax Mitigation payments
18
Interfund transfer in (out)
l
l
I
19
Investment earnings
20
Annual contribution to balance
1,000,000
1,000,000 1
325,796
21
Additional capacity from maturing,
existing debt
717,840
i
717,840 ;
717,840
717,840
903,600
I
1,058,800 t
1,058,800
I
640,400
25
Revenue Total
2,867,840
2,517,840 I
1,843,636
1,517,840 I
1,703,600
1,858,800 I
1,858,800
1,440,400 I
-
- i
-
- i
-
-
-
26
% Dbt Svc capacity used for PSP
60%
60%
60%
60%
40%
40% j
30%
20%
27
Project Expenditures
28
Justice Center
29
FS 51
30
FS 52
31
FS 52 SD Est Delta
32
FS 54
33
Apparatus & equip
0
OF
0
0
0
0E
0
0
34
Apparatus financing
575,049
575,049
575,049
304,799 I
304,799
304,799 I
304,799
304,799 ''
35
Shops
;
I
3
�
?
39
Project Expenditures Total
575,049
575,049 3
575,049
304,799
304,799
304,799 j
304,799
304,799
40
41
Debt Service
1
i
i
42
Debt service LTGO
3,232,829
3,232,829 I
3,232,829
3,232,829
3,232,829
3,232,829 ;
3,232,829
1,547,932 3
1,547,932
-
-
-
-
-
-
43
Utility Fds pay rent = 50% of dbt svc
(1,229,431)
(1,229,431)
(1,229,431)
(1,229,431)'
(1,229,431)
(1,229,431)!
(1,229,431)
(386,983)!
(386,983)-
44
GF Debt Service Total
2,003,398
2,003,398
2,003,398
2,003,398 4
2,003,398
2,003,398
2,003,398
1,160,949 i
1,160,949-
45
Expense Total
2,578,447
2,578,447 (
2,578,447
2,308,197 ;
2,308,197
2,308,197 j
2,308,197
1,465,748 i
1,160,949
-
-
-
-
-
-
46
52
Annual Surplus (Shortfall) 289,393
(60,607)I
(734,811)
(790,357)1
(604,597)
(449,397)1
(449,397)
(25,348)1
(1,160,949)
-
-
-
-
-
-
-
53
Beginning Carryover (Shortfall)
5,576,666
5,866,060 I
5,805,453
5,070,642
4,280,285
3,675,688 {
3,226,291
2,776,894
2,751,546
1,590,597
1,590,597
1,590,597 ''
1,590,597
1,590,597 I
1,590,597
1,590,597
54
Ending Carryover (Shortfall)
5,866,060
5,805,453
5,070,642
4,280,285 ;
3,675,688
3,226,291 ,
2,776,894
2,751,546
1,590,597
1,590,597 =
1,590,597
1,590,597
1,590,597
1,590,597 i
1,590,597
1,590,597
6/5/2019
Scenario D-20 updated May 2019 2 of 2
City of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
June 10, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: Thomas McLeod, Chair; Verna Seal, De'Sean Quinn
Staff: David Cline, Vicky Carlsen, Richard Takechi, Aaron Williams, Rachel Bianchi, Bruce
Linton, Jay Wittwer, Ben Hayman, Brandon Miles, Jeff Friend, James Booth
CALL TO ORDER: Chair McLeod called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. Storm and Surface Water Billings Transfer to King County
Staff updated the Committee on the transition of the Storm and Surface Water billing and
collection process to King County effective January 1, 2019. The City received a lot of calls and
inquiry during the first quarter but they have since tapered off. Tukwila will still handle old
delinquent bills. Committee members and staff discussed public records requirements and
offsite storage. DISCUSSION ONLY.
B. Fire Station 52 Funding
Staff returned with an updated "D-20" funding model reflecting the direction of the Committee
at its last meeting, which includes $167,000 in 2018 Fire Impact Fees and the unanticipated
Streamlined Sales Tax Mitigation payments that were added back in the 2019 legislative session.
The model also reflects the budget changes made to the Justice Center and Station 51 approved
by Council during the Fire Station 51 MACC and Justice Center mini-MACC decisions as well as a
reduction to 2018 apparatus funding to reflect what was actually spent and placeholder funding
in the out years. Once bids for the mini-MACC are received the full Council will make a final
decision. Chair McLeod asked about earthwork contingency and how to accurately budget it.
Staff noted it is no longer contingency and built in the budget as its included in Design
Development. Soil has to be brought in. Chair McLeod referenced concerns expressed by some
firefighters regarding the grade of the site, which will be at 12%. Chief Wittwer referenced the
Facets study which resulted in the siting decisions recommended by the advisory committee and
approved by Council. The City will be improving the site to accommodate the apparatus. Chair
McLeod asked Mr. Booth for his thoughts on this and he stated that the union does not support
the location as the grade presents issues with vehicle maintenance and inclement weather.
Councilmember Seal inquired further about safety and staff responded that certified engineers
are approving the plans. The roadway will include a heated strip system for ice and snow. The
Committee agreed to forward the funding discussion to the Committee of the Whole for
discussion. FORWARD TO JUNE 24, 2019 COMMITTEE OF THE WHOLE.
53