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Home My WebLink About2019-07-08 Committee of the Whole MinutesCity Hall Council Chambers July 8, 2019 — 7:00 P.m. Tukwila City Council Committee of the Whole Meeting ��U��UU�� uwxnn�� u u~�� COMMITTEE OF THE WHOLE CALL TOORDER/PLEDGE OFALLEGIANCE Council President Hougardy called the Tukwila City Council meeting to order at 7:00 p.m. and led the audience inthe Pledge ofAllegiance. OFFICIALS Present were Council President Hougardy; Counci|membens Dennis Robeheon, Kato KruUer, Thomas McLeod, Zak |dan. Counoi|membensSeal and Quinn were not inattendance. CITY OFFICIALS Allan Ekberg, Mayor; David Cline, City Administrator; Juan Padilla, Human Resources Director; Erika Eddina, Human Resources Analyst; Rachel Biannhi, Deputy City Administrator; VickvCarlsen' Finance Director; Derek Speuk, Economic Development Administrator; Henry Hmeh, Public Works Director; Hari Ponnekanti.Deputy Public Works Director/City Engineer; Jack Pace, Community Development Director; Jim Toole, Code Enforcement Officer; JayVViUvver. Fire Chief; Eric Dmaver, Deputy Police Chief; Laurel Humphrey, Council Analyst; AndyYoun. Deputy City Clerk. PUBLIC COMMENTS Dave Puki, 3748Gouth 152»uStreet. explained herecently received mpostcard inthe mail regarding the amnesty program for the registration ofunpennitted Accessory Dwelling Units (ADUs). His ADU was built in 1988 prior to being annexed into the City of Tukwila and passed an inspection in 2011 byocertified building inspector. Mr. Puki noted the web|inksonthe postcard are inva|id, so he called and an employee came to speak to him regarding the amnesty program and informed him he would need to bring a building inspector out in order to bring hisAOU to code before it can be registered, Bringing hisAOU up to current code will cost an estimated $30.000 for fire suppression. This is not feasible. Mr. Puki expressed concern that the amnesty program is not accomplishing its original intent aadiscussed by the Council. |tisvery restrictive. His intent was to register hinADU so he is officially on board with the City and will not be penalized later. Council President Hougardy indicated staff will reach out to Mr. Puki to follow up. Councilmember McLeod suggested having staff provide an update on the amnestyprogram tothe COUNCIL CONSENSUS EXISTED TOHAVE STAFF RETURN TO THE COMMITTEE 0FTHE WHOLE WITH AN UPDATE ON THE ADU AMNESTY PROGRAM. SPECIAL ISSUES a. A contract for health care broker services. Councilmember McLeod indicated this item was discussed at the Finance Committee meeting on June 24. 201g. Juan Padi|ta, Human Resources Director, stated the City submitted a request for proposals (RFP)for Tukwila City Council Committee ofthe Whole Minutes July 8.2O1O Page 2o/7 competitive service and pricing. The broker's role is to help the City manage the costsofboth the retiree and active employee health insurance plans, as well as negotiate prices on life, long-term dimabi|ity, and stop -loss insurance. The City received 5 responses to the RFP. Staff are recommending US| Insurance based upon their industry experience and depth of service resources offered. The Counci|membersasked the following clarifying questions: • Counci|memberMoLeod asked what benefits are associated with changing brokers. Mr. Padilla explained UG| Insurance will bring a nationwide network that the City can leverage. AddidonaUy, the immediate benefit will be US|'n high quality customer service, including connectivity through phone applications, uuotomizab|ewebnite p|atform, and accessibility for users. Human Resources staff are currently fielding 90% of customer service calls that should be serviced by the broker. With the additional customer service capability U8| will bhng, staff will be able to focus their efforts on other issues. * Counui|member|dan: o Are there any cost savings? Mr. Padilla indicated that while the cost for health care broker services will be slightly higher, cost savings could be engineered through plan redesign in the future. o How many years has the City been with the current provider? Mr. Padilla replied the City has used the same insurance broker for approximately 15years. c, Will reviews of health cane broker services be conducted regularly /nowhg /nn*and? Mr. Padilla answered in the affirmative. A policy will be developed to ensure the City goes to the market every 3 to 5 years and is receiving competitive service and pricing. * Cnunci|memberKru||er: o Is there more information regarding the bidders and the RFP process? Mr. Padilla relayed there were 5 bidders. Two of the bidders did not have public sector experience. Of the top 3 bidders, Gallagher's proposed cost was approximately $86K; Alliant's proposed cost was approximately $52K; and U8|'a proposed cost was $90K. The current broker's coat is approximately $SQK. The RFP vetting process involved staff from Human Resources, Finance, the health care committee, and labor partners. o What will happen ifUS/does not meet expectations? Mr. Padilla explained the contract would befor o 36-month period beginning mid -July 2019. The City will have 30 days to give notice should there be any issues with the proposed broker. Staff would then repeat the RFPand Council approval process. ~ Council President Hougardy asked for additional information concerning what value is added by US|. Erika Eddino, Human Resources Analyst, shared the broker helps Human Resources staff analyze numbers, provides data on plan utilization that informs plan design changes, and helps the City remain compliant with the Affordable Care Act and other regulations. The Council requested that the informational memorandum be updated with additional information concerning the other bids received for the RFP and the value added by the proposed broker. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TOTHE NEXT REGULAR MEETING. b. Public Safety Plan: (1) An ordinance to issue Unlimited Tax General Obligation (UTGC) bonds related tothe Public Safety Plan. (2) An ordinance to issue Limited Tax General Obligation (LTGO) bonds related to the Public Safety Plan. Councilmember McLeod indicated this item was discussed at the Finance Committee meeting on June 24, 2019. On November 8, 2016, voters approved the $77 million Public Safety Plan bond measure and Council approved an ordinance authorizing the issuance of up to $36.5 million in UTGO bonds to provide sufficient resources for the first 2.5 years of expenditures. Vicky Carlsen, Finance Director, introduced Steve Amano of PFM, the City's Financial Advisors. Ms. Carlsen explained she will be addressing both ordinances concurrently and provided a brief overview as follows: The first ordinance is to issue the remaining Unlimited Tax General Obligation (UTGO) bonds related to the Public Safety Plan in the amount of $40.885 million. The second ordinance is to issue Tukwila City Council Committee nfthe Whole Minutes July 8.2U19 Page 3of7 Limited Tax General Obligation (LTGO) bonds related to the Public Safety Plan in the amount of $25 Both ordinances are part of the adopted budget that was approved by Council in 2018. Based on the cash flow projections rmoaimedfromS{}J(8hie|sOb|etzJohnaen)'theCity'aP Management Consultant, in April 2019, the Public Safety Plan will need additional funding in the 41h quarter of 2019. Given current market conditions, it is anticipated the budget is sufficient to cover the proposed bond issue. Both debt issuances would occur during the 4th quarter of 2019 and in order to reduce debt issuance costs, the LTGC}debt issue will betimed tooccur within afew weeks ofissuing the UT{3Ddebt. The adopted budget includes debt service of $875,000 beginning in 2020 for the LTGO bond issue that is anticipated to be sufficient to cover the proposed bond issue. The LTGO issue is currently budgeted to allow for up to $7.5 million to fund the Public Works Shops facility and $17.5 million as funding for the Justice Center and fire stations. Proceeds from the LITGO bond measure would provide funding for the Justice Center and fire stations. Ms. Carlsennoted that the ordinances that will beforwarded tothe next Regular Meeting will beprovided in strike-through/underline format with the following minor edits: * For the LTGO ordinance, references to the number of fire stations have been removed; ~ For the LTGO ordinance, page 14 of the ordinance has been amended to reflect that the bond does not exceed $25million rather than $25.5million; and * On both ordinances, section 4 has been amended to add a reference to Exhibit B. COUNCIL CONSENSUS EXISTED TQFORWARD THIS ITEM TQTHE NEXT REGULAR MEETING. m. Council consensus onthe Economic Development Plan outreach process. Councilmember McLeod indicated this item was discussed at the Community Development and Neighborhoods Committee meeting onJune 25.2O18, Derek Speck, Economic Development Administrator, introduced Benton Coblentz, Mayor's Office |nbarn, and explained Economic Development staff have been working on an economic development plan that will provide context, options, and guidance tostaff and po|icymokers. One of the key concepts of staff's approach is to have an economic development plan page on the City's website. The page would be a central place for the public to learn about Tukwila's economy, understand the process, and provide input (via online survey). With the help of interns, staff have been developing considerable information related to Tukwila's economy and their approach will be to post this information online so that stakeholders can have a shared understanding of key aspects of the City's economy. Staff will be seeking community involvement during the development of the economic development plan, with the goal of providing opportunities for input from residents, businesses, and property owners. Survey outreach tothe community will utilize the following methods: • Conducted inthe top four languages spoken bvTukwila residents * At a key location on Tukwila International Boulevard such as Saar's grocery store * Door-to-door * Listening session inthe neighborhood w Email and social media outreach * Presenting etCity Boards and Commissions ° Phone calls ° Focus groups ° Partnering with community organizations ° Weekly "teoser''emei|sto interested stakeholders Mr. Speck shared the intended schedule is to conduct community outreach in July and August. Staff will Tukwila City Council Committee of the Whole Minutes July 8.2O1A Page 4of7 HamdiAbduUe. 1G258Military Road, 8aaTao is the Executive Director ofAfrican Community Housing and Development that is based in the City of SeaTac. She expressed funding must be allocated for community engagement. Community engagement should be gonuine, intentional and specifically target the population most affected by lack of resources. Each individual has the right to transition from being underserved to being served or serving themselves. This can happen only when they are informed and empowered through resources. Ms. AbduUa emphasized community engagement should occur atall The Counci|memberaoffered comments asfollows: ° The importance of the Economic Development Plan in developing a response to the City's need for revenue due to the structural changes in the retail market and associated sales tax; * Concern that the budget and time frame in which this work will be completed is too short considering the scale of work required; ° Clarification that this item is only regarding the outreach plan to obtain feedback that will be used to determine the priorities and elements ofthe Economic Development Plan; • It will be helpful to compare economic development plans from other jurisdictions with demographics similar hoTukwila; w Puget Sound Regional Council is a valuable resource for reviewing award -winning economic development plans from other jurisdictions; * This document will work in concert with the Strategic P|an, Comprehensive P|an, and other core City documents that are already in p|ana� m The survey should ask whether the respondent is a resident of Tukwila to ensure accurate data; * The importance of capturing feedback from residents for whom English is a second language or donot speak English; • Concern that the Community Connectors are not being utilized osoresource; ° Staff can work with nonprofit and local organizations to disseminate this survey further to the community. Following aquestion from Counci|memberK/u||er, Mr. Speck explained the City does not have an Economic Development Plan already in place as there was sufficient clarity on the work priorities of the Economic Development Department. Projects such aoTukwila Village and Hotel Interurban took precedence, especially as staff had guidance from the Economic Development element of the Comprehensive Plan. The Council requested that Mr. Speck return to the Council once survey results have been compiled. COUNCIL CONSENSUS EXISTED QNTHE ECONOMIC DEVELOPMENT PLAN OUTREACH PROCESS. d. Solid waste utility tax and recycling surcharge: (1) An ordinance to increase the solid waste utility tax. (2) A Letter of Understanding to approve a recyclable market surcharge for commercial accounts. Councilmember Idan indicated this item was discussed at the Transportation and Infrastructure Committee meeting on June 18, 2019. The committee members forwarded this item with unanimous approval anamended. Henry Haah, Public Works Dinacbor, explained staff are returning with changes tothe ordinance as requested at the May 28, 2019 Committee of the Whole meeting. Following public comment and feedback from the business community, the proposed ordinance now includes a stepped increase over two years and clarity around revenues being dedicated to street maintenance and repair. The utility tax will be increased from 6% to 11 % effective beginning November 1, 2019 and from 11 % to 16% effective July 1, 2020. The 5% Commercial Recyclable Cost surcharge will also be effective November 1, 2019. Mr. Hash noted the increased utility tax isprojected tubringinopproximate|y$7OO.O0U'$750.00Oinrevenuewith aloss of $25U.00Uwith the stepped increase. Coun(j|member|donhighlighted page8OcfUleagendaoacketandabahsdMheCommitteadiecusaedbwo Tukwila City Council Committee ofthe Whole Minutes July D.201Q Page 5of7 * Option 1: "The remaining revenues may remain in the General Fund, and will be dedicated to maintain and repair City streets." • Option 2: "The remaining revenues will be dedicated to maintain and repair City streets." VickvCarman.FinancoOireobzr.explainadleavnginU)ophrase^maynamainindleGenena|Fund^ preserves maximum flexibility for the Council as there are two funds dedicated to street maintenance and repair: residential and arterial. There is also astreet department inthe General Fund that performs street maintenance. W1e. Cadsnn indicated the Council can set policy each budget cycle should they desire any future amendments hothe language inthe ordinance. The Cuumci|nlambernoffered comments eofollows: * Future Councils can modify the ordinance to dedicate revenue to specific funds as needed; * As the justification for increasing the utility tax was due to asphalt damage from heavy solid waste vehio|ea, it would make sense todedicate funds tustreet repairs; * Despite the increase. Tukwila still has low utility taxes compered to some local jurisdictions; ° Well -maintained roads are opublic service that influences people's experiences inthe City; w The intent of the increased tax is stated in the whereas clauses of the ordinance; being overly prescriptive inthe phrasing may not beadvisable; Support existed toforward the ordinance sm presented inthe July 8.2O1QCommittee ofthe Whole pocket Cound|momberacould then make motions toamend the ordinance should they desire changes to the language. COUNCIL CONSENSUS EXISTED T0FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. e. Code Enforcement contracts: (1) Acontract with PC|Demm000nfor demolition services. (2) A contract with EHG|` Inc., for asbestos abatement. Councilmember Robertson indicated this item was discussed at the Community Development and Neighborhoods Committee meeting on June 25, 2019. Jim Toole, Code Enforcement Officer, provided an overview of this issue as follows: Code Enforcement staff has been working with the owner of the property located at 15026 42nd Avenue South to bring the property into compliance with the Tukwila Municipal Code (TMC) since July 22, 2002. The structure has been in a dilapidated condition since 2002 and continues to be a public nuisance and abandoned property. Very little work has been completed since the time the home was brought onto the property in2UO6and raised tobuild anew first floor. AeofJune 14.2O19.there are noactive permits or permit applications on this property under review and there are no active water, sewer, or electric service connections bothe house. Mr. Toole emphasized that Tukwila Police have responded to several complaints of people breaking into the house and squatting in the garage. Given the duration of this issue and unsuccessful attempts at completing the Voluntary Correction Agreement, staff is requesting the Council approve contracts for demolition and asbestos abatement. The Counci|membemexpressed support for this issue and noted this will allow the City homitigate a public safety issue. COUNCIL CONSENSUS EXISTED TOMOVE THIS ITEM FORWARD TOTHE CONSENT AGENDA AT THE NEXT REGULAR MEETING. Tukwila City Council Committee ofthe Whole Minutes July O.2O1Q Page 0of7 a. Mayor Mayor Ekberg reported he will be participating in the 2019 Mayors National Youth Summit in Los Angeles at the end of July. Two Tukwila youth from the Teens for Tukwila program will also be in attendance along with NieahaFort-Bruoks.Community Engagement Manager. b. City Council Councilmember Robertson asked that the Police and Fire Departments update the Council with the results of their enforcement strategy aimed at the illegal discharge of fireworks. Coumci|nnennberKru|ler attended the 2U1QNational League ofCities Summer Board and Leadership Meeting in Indianapolis. She is the Vice Chair of the Transportation & Infrastructure Services Federal Advocacy Committee, which reviewed topics such aostrategies for rolling out rapid tnanait, collective advocacy actions, and policies concerning Unmanned Aircraft Systems (UAS or drones). The Committee also received an update from Anne Reinke, the U.S. Department of Transportation's new Deputy Assistant Secretary ofIntergovernmental Affairs, [Wo. Kru||orexpnsssed excitement atthe opportunity to build collaborative and productive relationships. Councilmember McLeod reported that at its July 8, 2019 meeting, the Finance Committee received an update on2O18 1s'quarter sales tax and miscellaneous revenue. OvenaU, sales tax collections increased $50.800 over the same period last year. Retail Trade categories are underperforming and may have been negatively impacted by the snowstorm, government shutdown, and tax law revision. The City received a boost in revenue in the Motor Vehicle and Parts Dealer category. The City will also receive sales tax from future electric bus sales. Council President Hougardy attended the Association of Washington Cities Annual Conference in Spokane from June 25—June 28.2O1Q. c. Staff There was no report. d. Council Analyst There was noreport. MISCELLANEOUS Councilmember Kruller asked the Fire Department for information concerning a house fire in Tukwila on July 4.2O1gand how the community can help. Jay VVhbmer, Fire Chief, reported that on the evening of July 4, while enforcing the ban on fireworks, he and Chief Linton responded to a call for a structure fire on 42nd Avenue South. While the property was difficult to aocens. Fire crews did an excellent job in containing the fire. Approximately 7096 of the single- family residence was affected by the fire. The cause is under investigation but currently does not point to fireworks. The only individual in the home was able to exit the building unharmed. Those interested in assisting the family can contact the Red Cross. Council President Hmugondyobserved there appears to be some ambiguity inthe availability of the Community Connectors. She asked that the Council be provided with an update regarding the Community Tukwila City Council Committee of the Whole Minutes July 8, 2019 Page 7 of 7 ADJOURNMENT 9:26 p.m. COUNCIL PRESIDENT HOUGARDY DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED. Andy Youn, Deputy City Clerk APPROVED BY THE COUNCIL PRESIDENT: 8/5/19 AVAILABLE ON THE CITY WEBSITE: 8/6/19