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Tukwila Cit Council Committee of the Whole Meeting
On-site and Virtual Meeting October 24, 2022 — 7:00 P.M.
MINUTES
This meeting was conducted both on-site at Tukwila City Hall and virtually via Microsoft Teams.
The phone number for public participation that was provided via the agenda distribution process was:
1-253-292-9750, access code 670077847# as well as a link to join the Microsoft Teams Meeting.
COMMITTEE OF THE WHOLE
CALL TO ORDER/PLEDGE OF ALLEGIANCE
Council President McLeod called the Tukwila City Council meeting to order at 7:00 p.m. and led the
audience in the Piedge of Allegiance.
OFFICIALS
Present at the meeting were Council President McLeod (on-site); Councilmembers Kathy Hougardy (on-
site), De'Sean Quinn (on-site), Kate KruUe[(on-site). Delostrinos Johnson (on-site), Mohamed Abdi (on-
site).ToahSharp (om-sito).
CITY OFFICIALS
Allan Ekberg, Mayor; David C|ine, City Administrator; Rachel Bianchi, Deputy City Administrator; Nora
Gierloff, Community Development Director; Derek Speck, Economic Development Administrator; Vicky
Carlsen, Finance Director; Tony Cu||erton, Deputy Finance Director; Jay Wittwer, Fire Chief; Norm
Gn|den, Deputy Fire Chief; Peter Mayer, Interim Parks and Recreation Director; Eric Lund, Deputy Police
Chief; Hari Ponnekand, Public Works Director; Mark Hmfm, EIS Project Director; CodyGray. Operations
Manager; Joel Bush, Chief Technology Officer; Laurel Humphrey, Legislative Analyst; Andy Youn, Deputy
City Clerk.
LAND ACKNOWLEDGEMENT
Councilmember Hougardy stated The City of Tukwila is located on the ancestral lands of the Coast
Salish people. We acknowledge their continuing connections to land, waters and culture. We pay our
respects to their eders past, present and emerging."
PUBLIC COMMENTS
There were no public comments,
AGENDA AMENDMENT
Council President McLeod asked for consensus to amend the agenda to remove item 4, a presentation
on Public Safety, to be rescheduled at a future date due to Chief Villa's absence.
Council Consensus existed to amend the agenda to remove item 4.
PRESENTATION (removed per agenda amendment)
Tukwila City Council Committee of the Whole Minutes
October 24, 2022 Page 2 of 5
SPECIAL ISSUES
a. A contract for the Allentown truck reroute EIS (Environmental Impact Statement)
Mark Hefs, EIS Project Director, explained following Council direction to fund an EIS (Environmental
Impact Statement) to consider alternative routes that would reduce the level of impacts of truck traffic in
Allentown, the City interviewed three consultant firms and ultimately selected HDR, Inc. as the firm that
best met project requirements and City objectives. The proposed contract with HDR, Inc. is for p|anning,
engineering, pjectmanagementandcoordinationoftheBS.andpub|icoutreach|ntheamountof
$796.274.00.
The Councilmembers asked clarifying questions regarding measuring success, engaging with
stakeholders, and next steps.
CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE SPECIAL MEETING CONSENT AGENDA
DIRECTLY FOLLOWING THIS MEETING.
b. A resolution adopting a Consolidated Permit Fee Schedule.
Nora Gierloff, Community Development Director, indicated permit fees are generally adopted on a 2 -year
cycle to align with the biennial budgets and reflecthe cost of service, Staif is proposing an 85% increase
in permit fees in 2023 and 7% increase in 2024 to reflect the City's increased labor and benefit costs due
to rapid inflation. Certain additional permit fees are also being increased and adjusted per proposed
updates to Tukwila Municipal Code (TMC) Chapter 11.08 Right -of -Way Use.
The Councilmembers discussed a moderate increase of the $20 special permit fee for residential
remodels up to a value of $20,000 and acknowledged the special fee removes barriers to permitting for
homeowners making modest improvements; ensuring safe and compliant building construction through
permitting; the need to balance cost recovery with residential needs; and aligning increases in permitting
fees with service outcomes and deliverables. They also commented on the impact of increased fees to
developers with acknowledgment that economic development is vital to Tukwila's continued growth.
7:47 p.m.
7:56 p.m.
7:56 p.m.
7:57 p.m.
8:04 p.m.
8:06 pm
Cound|memberAbdileft the Council Chambers.
Councilmennber Abdi returned to the Council Chambers.
Counoi|memberKruUerleft the Council Chambers.
Councilmember Kruller returned to the Council Chambers.
Councilmember Quinn exited the Council Chambers.
Councilmember Quinn returned to the Council Chambers.
CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NOVEMBER 14, 2022 COMMITTEE OF
THE WHOLE FOR FURTHER DISCUSSION.
c. An update on a B8t0 (Business and Occupation) Tax.
Tony Cu|lerton, Deputy Finance Oirechor, provided an update on the proposed Business and Occupation
(B&O) Tax that would take effect January 1, 2024. The proposed B&O Tax is part of the Mayor's
approach to a balanced budget that also includes use of one-time funds and frozen positions. Businesses
subject to the local B&O Tax are entities that fall into one or more of the NAICS Category Codes
(Manufacturing, Wholesaling, Retail, Service & Other Activities), businesses that maintain a physical
address within the City, those that generate annual gross receipts equal to or more than $20,000, and
nonexempt businesses. In addition to certain businesses outlined in the State Model Ordinance for B&O
Taxes, the City is exempting nonprofits, casinos, and professional/semi-professional/amateur sports
teams. The City is also proposing a minimum annual threshold of $750,000, meaning businesses
generating gross revenues equal to or Iess than the threshold will be exempt from the B&O Tax.
Forecasted revenues are pjected to be approximately $3 million annually.
Tukwila City Council Committee of the Whole Minutes
October 24, 2022 Page 3 of 5
In response to a clarifying question from Councilmember Hougardy regarding the exemption of
professional sports teams, Rachel Bkanchi, Deputy City Administrator, explained this exemption was
included in consideration of the OL Regn and Seattle Seawolves.
The Councilmembers offered comments regarding the proposed B&O Tax to include general support for
the $750,000 minimum threshold, Iow rates compared to surrounding juhadictions, and proposed
exemptions; the importance of outreach to businesses; and the structural deficit due to several factors
including the sunset of the streamlined sales tax mitigation revenue.
Councilmennber Kruller asked for a list of cities in King County that have a B&O Tax; of those cities, how
many have a head tax; what Tukwila charges for its head tax and how much revenue it receives; and
information regarding alternative revenue sources.
Councilmember Sharp asked for the psalaries/expenditure for the two proposed full time
positions in Finance needed to administer the B&O Tax.
8:36 p.m.
8:38 p.m.
Cnumci|memberSharp left the Council Chambers.
Councilmember Sharp returned to the Council Chambers.
Mayor Ekberg relayed the pjected shortfall is $4 million in 2023 and $5.4 million in 2024 to maintain
existing service levels. The City has lost critical certain revenues due to changes in state law, including
streamlined sales tax and the sunset of associated mitigation payments. The proposed budget is based
on a "three-legged stool" approach (use of one-time funds, budget reductions through attrition and
vacancies, and a modest B&O Tax) that reflects the priorities that the City heard from residents: Teen,
Youth and Senior Programs; fully funding Police and public safety; Communications and Community
Engagement; Infrastructure Maintenance; and Human Services & Rental Assistance. The proposed B&O
Tax will provide a mechanism for stabilizing revenues and continue providing needed services.
8:52 p.m.
8:55 p.m.Councilmember Delostrinos Johnson returned to the Council Chambers,
Councilmember Delostrinos Johnson exited the Council Chambers.
d. Proposed 2023-2024 Biennial Budget: Fleet (501 Fund).
Cody Gray, Operations Manager, provided an overview of the proposed 2023-2024 Biennial Budget:
Fleet (501). The 501 Fund is used to provide a fleet of vehicles and equipment with an operation
maintenance and replacement program.
e. Proposed 2023-2024 Biennial BudgetDrug Seizure Fund.
Eric Lund, Deputy Police Chief, presented an overview of the proposed 2023-2024 Biennial Budget: Drug
Seizure (109). The 109 Fund was established to account for revenues resulting from the proceeds of
property and moneys forfeited as a result of their involvement with the illegal sale, poaeeasion, or
distribution of narcotics and/or other controlled substances. Expenditures from this fund must adhere to
strict State and Federal stipulations. The only planned use of these funds at this time is for the contracted
amount of a Mental Health Professional to serve as a Co -Responder assisting community members in
crisis.
f. Proposed 2023-2024 Biennial Budget: Contingency Fund, Debt Service Funds, Fire Impact Fee
Fund, Active Employees Health Care Fund.
9:02 p.m.
9:04 p.m.
Councilmember Hougardy exited the Council Chambers.
Councilmember Hougardy returned to the Council Chambers.
Vicky Carlsen, Finance Director, reviewed the proposed 2023-2024 Biennial Budgets:
Tukwila City Council Committee of the Whole Minutes
October 24, 2022 Page 4 of 5
Contingency (105): The 105 Fund provides for a reserve fund balance equal to or greater than 10% of the
previous General Fund ongoing revenue, exclusive of significant non-operating, nonrecurring revenues
such as real estate sales or transfers in from other funds. Expenditures from this fund can be used for
more restrictive, emergency purposes and require Council approval.
Debt Service: The funds inthis budgstrecord the poyn�entufphnoipa|and interest �nthe Cdx'a
outstanding Iimited tax general obligation bonds, unlimited tax general obligation bonds, and bonds
associated with the City's Local Improvement District #33. With certain exceptions, all general obligation
bond issues are repaid by taxes collected in the General Fund.
Fire Improvement (304): The 304 Fund provides for fire department capital improvements and apparatus
through Fire Impact Fees that are transferred to the Public Safety fund to pay for improvements specific
to the Fire Department.
Self -Insured Healthcare (502): The 502 Fund accounts for the City's self-insured healthcare plan and
receives contributions on behalf of employees through premiums charged to their respective organization
units. Healthcare doimn, program administrative fees, and the Wellness Program are expensed from this
fund.
REPORTS
a. Mayor
Mayor Ekberg thanked the Council for excusing his recent absence from Council Meetings.
b. City Council
Councilmember Hougardy attended a Regional Transit Committee meeting where they considered an
ordinance related to lowering the ORCA LIFT fare.
Councilmember Quinn reported the Finance and Governance Committee reviewed several business
items: property tax |egio|adion, a resolution authorizing an interfund loan for a fire engine, budget
legislation, a B&O tax, an ordinance setting Council compensation, a contract with Ogden Murphy
Wallace for City Attorney Services, a contract with Kirshenbaum & Goss for Public Defense Services, and
the August General Fund Expense Update.
Councilmember Kruller attended the open house at the recently completed Miracle Temple tiny house
village that was also attended by the Mayor, the Council President and former Councilmember Joe Duffie.
Councilmember Delostrinos Johnson attended the Youth and Law Forum held at the Tukwila Community
Center. The event drew over 300 attendees and special guestincluded Washington Supreme Court
Justice Helen VVhitener, King County Councilmember Girmay Zahi|oy, and judges from all over the state.
She thanked the City and Parks and Recreation staff for supporting the event and gave kudos to Trish
Kinlow, Court Administrator, and Judge Kimberly Walden for co -hosting the event.
Council President McLeod attended the Miracle Temple tiny house village open house.
c. Staff
There was no report.
MISCELLANEOUS
Following a request from Councilmember Hougardy, Council consensus existed for a report on expanding
in-person operating hours for City facilities.
The Mayor relayed he will provide the requested report to the Council.
Tukwila City Council Committee of the Whole Minutes
October 24, 2022
Page 5 of 5
ADJOURNMENT
9:17 p.m. COUNCIL PRESIDENT MCLEOD DECLARED THE COMMITTEE OF THE WHOLE
MEETING ADJOURNED.
o as McLeod, Council P sident
Andy Youn, Deputy City Clerk
APPROVED BY THE COUNCIL PRESIDENT: 11/04/22
AVAILABLE ON THE CITY WEBSITE: 11/07/22