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HomeMy WebLinkAboutFIN 2023-03-13 COMPLETE AGENDA PACKETCity of Tukwila Finance and Governance Committee O Kate Kruller, Chair O Kathy Hougardy O De'Sean Quinn AGENDA MONDAY, MARCH 13, 2023 — 5:30 PM Distribution: K. Kruller K. Hougardy D. Quinn C. Delostrinos Johnson T. McLeod M. Abdi T. Sharp Mayor Ekberg D. Cline R. Bianchi C. O'Flaherty A. Youn L. Humphrey THIS MEETING WILL BE CONDUCTED BOTH ON-SITE AT TUKWILA CITY HALL AND ALSO VIRTUALLY. ON-SITE PRESENCE WILL BE IN THE DUWAMISH CONFERENCE ROOM (2ND FLOOR, 6300 SOUTHCENTER BOULEVARD) THE PHONE NUMBER FOR THE PUBLIC TO LISTEN TO THIS MEETING IS: 1-253-292-9750, Access Code 965223169# Click here to: Join Microsoft Teams Meeting For Technical Support during the meeting call: 1-206-433-7155. Item Recommended Action 1. BUSINESS AGENDA a. Approval to conduct a Private LTE Proof of Concept a. Forward to 3/20 Regular Pg.1 (POC) with the Washington State Broadband Office for student internet access. Meeting. Joel Bush, Chief Technology Officer b. Monthly General Fund update (January 2023). b. Discussion only. Pg.7 Tony Cuilerton, Deputy Finance Director c. An update on the Boards and Commissions appointment process. c. Discussion only. Pg.13 Laurel Humphrey, Legislative Analyst; and Cheryl Thompson, Executive Assistant d. An update on Capital facilities financing. d. Discussion only. Pg.21 David Cline, City Administrator; and Brandon Miles, Business Relations Manager 2. MISCELLANEOUS Next Scheduled Meeting: March 27, 2023 SThe City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk@TukwilaWA.gov) for assistance. City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Joel Bush, Chief Technology Officer BY: Eric Compton, TIS Franchise Analyst CC: Mayor Ekberg DATE: March 7, 2023 SUBJECT: Private LTE / CBRS Proof of Concept Funding ISSUE Approval to conduct a Private LTE Proof of Concept (POC) with the Washington State Broadband Office. The State Broadband Office will provide up to $1 Million in funding for the POC. BACKGROUND The City of Tukwila has unsuccessfully applied for grants in the recent past to develop a Private LTE (Long Term Evolution) solution to bridge the digital divide experienced by Tukwila Students. The State Broadband Office reached out to the City of Tukwila to provide up to $1,000,000 to conduct a POC based on the strength of past grant applications. Ensuring that every Tukwila student has equitable access to quality internet is the 1St Pillar of Tukwila Smart City Initiative. If successful, this POC can be scaled to meet this end. Additionally, the network can lay the foundational infrastructure for programs to support many other projects including public safety initiatives, measuring air quality, parking availability in the business district, and utility applications. DISCUSSION This Private LTE POC will provide quality internet to approximately 1,200 Tukwila students that reside in Tukwila Hill, Allentown and Tukwila International Boulevard neighborhoods. Private LTE is the same technology used by cell carriers on cell phones for over a decade marketed as 4G. The solution will provide cellular connectivity to local students using take home Chromebooks provided by the school district. Tukwila will contract with a partner to manage the provisioning of resources needed to connect the Private LTE network to the Chromebooks. TIS has consulted with vendors on the feasibility of this project and are confident that the selected vendor will deliver in time and within the agreed upon scope. The Washington State Broadband Office will provide contracting services for the Private LTE Proof of Concept. The final contract will come before the council when it has been developed. The State Broadband office has implemented a time requirement for the project that the $1,000,000 will need to be expended by June 30th, 2023. FINANCIAL IMPACT There will be limited financial impact in conducting the Private LTE network, but some staff time will be required to determine connectivity of cellular sites to the City or network. In our current discussions, the State Broadband Office will provide enough funds for all infrastructure and three (3) years of spectrum license fees and managed services. Spectrum license and 1 2 INFORMATIONAL MEMO Page 2 managed service fees of $94,000 per year will need to be part of the 2025/2026 budget discussions if Tukwila wishes to continue beyond the initial POC. RECOMMENDATION The Council is being asked to approve partnering with the Broadband Office on the Proof of Concept at the March 20, 2023 Regular Meeting. ATTACHMENTS Student Internet Need Analysis Map Citizen Broadband Radio Service Spectrum Analysis Draft of Proposed Cellular Site Locations. https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Technology Services/Private LTE Informational Memorandum (Info Memo).docx Tukwila School District - Student Internet Need Analysis City of Tukwila - GIS w -122.225 47.482 Degrees unty, WA State Par KS GIS Legend .^. X Hotspot Deployment (Heat map) Tukwila Empty Conduit Tukwila Empty Conduit and Fiber Tukwila iNet City Limits Tukwila Hill • 56 payor lunch students • 210 free and reduced lunch students • 266 TOTAL TIB • 79 payor lunch students • 687 free and reduced lunch students • 766 TOTAL Allentown • 35 payor lunch students • 59 free and reduced lunch students • 94 TOTAL TOTAL SUM OF ALL STUDENTS IN 3 AREAS 1126 TOTAL STUDENTS Potential State Broadband Office Private LTE CBRS Proof of Concept CBRS Spectrum Analysis Customer Location Use Case Type Bandwidth Required Date City of Tukwila, WA Tukwila, WA Indoor/Outdoor service for City (TBD) TBD 1 B1Jan(2023 Location shows moderate CBRS spectrum utilization within approx. 9 miles. Non -Federal incumbents are not present. Within DPA Zone - radios should be configured to allow frequency change in case of federal activity. PAL channels are present (30 MHz; 3620-3650 MHz). Overall good conditions for CBRS deployments. GO. DPA Zone PAL Channel Utilization Within -9 miles - Category R *Category ® 02022Fedealed Wireless. PJI lMs reserved. Draft Cell Site Locations t]L RSRP coverage for a 20MHz LTE Channel at 3500 MHz LTE: Commie b, RSRP Leve! MU RSRP Levet fDLI Idfn9 > =$S RSRP Leve! I➢LI IdBee > _ _g0 PEEP Level fDUI RPe s-95 RSRP Levet IOU NMI > =•105 RSRP Left! IDLI( Rn0>-•10S RSRP Levet IOU Id&n1 > =•110 111 PEEP Level CLI Id9mI > •-115 FIGURE 3: RADIO FREQUENCY COVERAGE 1:1212.1 Feeler lad PJI,. RYI ngM reserved Neighborhood Site Facility Address Height(ft) Monopole Allen Town AllenTown Tukwila Community Center 12424 42nd Ave S, Tukwila, WA 98168 60 Tukwila Hill Tukwila Hill Municipal Water Reservior 15000-14944 57th Ave 5, Tukwila, WA 98168 50 YES Tukwila Hill Foster PSE Utility Pole 13537 Interurban Ave S, Tukwila, WA 98168, USA 50 T1B Cascade View Cascade View Elementary school 13601 32nd Avenue S., Tukwila WA 98168 38 TIB T1B Impact Puget Sound Charter School 3438 5 148th 5t., Tukwila, WA 98168 64 TIB Site 2 PSE Utility Pole 38 Rainbow Cir, Tukwila, WA 98188, USA 25 TIB Site 3 PSE Utility Pole 15810 39th PI 5, Tukwila, WA 98188, USA 25 01 6 W i City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Tony Cullerton, Deputy Finance Director CC: Mayor Ekberg DATE: March 13, 2023 SUBJECT: January 2023 General Fund Departmental Budget -to -Actuals Report Summary The purpose of the January 2023 General Fund Financial Report is to summarize for the City Council the general state of departmental expenditures and to highlight significant items. The following provides a high-level summary of the departmental financial performance. The January 2023 report is based on financial data available as of March 3, 2023, for the period ending January 31, 2023. Expenditures Allocated Budget The 2023 Allocated Budget calculation has changed from the prior year reporting in that, General Fund departments now allocate their annual budget by month based on anticipated spending requirements instead of historical spending behaviors. For example, known insurance payments that are due at the beginning of the year are allocated fully in the month the payment is due, instead of allocating the expense evenly over twelve months. As of the end of January, every department reported activity that is within their allocated budget. General Fund departmental expenditures totaled $5.2 million through January, which is $706,826 less than the allocated budget of $5.9 million. Department 20, which is transfers to other funds, reported no expenditure activity in the month of January. This is consistent with January 2022 spending patterns. In total, the General Fund reported expenditures of $5.2 million through January, which is $706,826 less than the allocated budget of $5.9 million. Budget to Actual When comparing YTD spending to the percent of year completed (8.3%), a few departments finished the month higher. Finance reported % Expended of 17% at 8.3% of the year. This is attributed to the maintenance agreement with Tyler Technologies for Eden. Police ended the month at 9.1%. Major contributing factors are Salaries and Professional Services. The increase in Salaries is a result of contractual agreements. Professional Services reported an increase over the same period last year of $360,984 or 129%. The main driver is an increase is Dispatch Services. Public Works finished the month at 17.8%. The significant portion of the increase has been traced to Professional Services. Specifically, Facilities Maint. / Ins -Property. 1 7 INFORMATIONAL MEMO Page 2 Departmental Variances Year to Date Department Expenditures Compared to Allocated Budget Through January 2023: 2023 Compared to 2022 Most departments reported increases over the same period of the prior year. An increase in salaries is common across the board. A few departments reported increases greater than 5% and $50,000 over the same period last year. In addition to the standard salary increase, Administrative Services reported increased Online Services costs in its TIS division, and the AWC annual membership invoice was paid by the HR division. Recreation reported the standard increase in salaries over the prior January, as well as an increase in Extra Labor due to the return of services. Police reported an increase in Salaries and Professional Services. The increase in Salaries is a result of contractual agreements. Professional Services reported an increase over the same period last year of $360,984 or 129%. The main driver for this increase is Dispatch Services, which reported January expenditures of $230,808. Zero expenses were reported for Dispatch Services during the same period last year. While there were Dispatch Services expenditures incurred in January 2022, timely reporting has been enhanced in 2023 compared to prior years. Public Works reported an increase on the previous year of $117,059. The significant portion of the increase has been traced to Facilities Maint. / Ins -Property. January 2022 expenditures for this insurance cost was $346,858. January 2023 costs was $438,917, representing a total increase of $92,059. Overall, the General Fund departments reported actual spending of 3.5% ($190,391) less than the same period last year. 8 BUDGET ACTUAL 2023 2023 2021 2022 2023 Allocated Budget vs Actual % Expended $ Change % Change EXPENDITURES BY DEPARTMENT Annual Allocated OVER/(UNDER) 2022/2023 City Council 384,889 28,491 25,650 27,414 28,480 (11) 7.4% 1,066 3.9% Mayor's Office 2,502,666 229,365 78,975 113,608 121,425 (107,940) 4.9% 7,817 6.9% Administrative Services 5,676,491 444,218 309,492 333,586 405,218 (39,000) 7.1% 71,632 21.5% Finance Department 3,868,642 734,334 521,763 644,461 662,025 (72,309) 17.1% 17,564 2.7% Recreation Department/ Parks Maintenance 5,109,490 375,394 273,418 252,039 336,348 (39,047) 6.6% 84,309 33.5% Community Development (DCD) 4,672,314 385,559 257,564 385,765 328,107 (57,452) 7.0% (57,658) -14.9% Municipal Court 1,741,340 145,112 94,867 119,131 135,263 (9,849) 7.8% 16,133 13.5% Police Department 22,746,448 2,228,104 1,463,602 1,541,077 2,075,806 (152,298) 9.1% 534,729 34.7% Fire Department 14,790,120 275,195 1,222,368 1,235,466 252,424 (22,771) 1.7% (983,042) -79.6% Public Works Dept/ Street Maintenance 7,574,988 1,036,598 557,927 713,391 830,450 (206,148) 11.0% 117,059 16.4% Subtotal 69,067,388 5,882,371 4,805,627 5,365,936 5,175,545 (706,826) 7.5% (190,391) -3.5% Non Departmental 6,688,881 0 0 0 0 0 0.0% 0 #DIV/0! Total Expenditures 75,756,269 5,882,371 4,805,627 5,365,936 5,175,545 (706,826) 6.8% (190,391) -3.5% %of Year 8.3% 2023 Compared to 2022 Most departments reported increases over the same period of the prior year. An increase in salaries is common across the board. A few departments reported increases greater than 5% and $50,000 over the same period last year. In addition to the standard salary increase, Administrative Services reported increased Online Services costs in its TIS division, and the AWC annual membership invoice was paid by the HR division. Recreation reported the standard increase in salaries over the prior January, as well as an increase in Extra Labor due to the return of services. Police reported an increase in Salaries and Professional Services. The increase in Salaries is a result of contractual agreements. Professional Services reported an increase over the same period last year of $360,984 or 129%. The main driver for this increase is Dispatch Services, which reported January expenditures of $230,808. Zero expenses were reported for Dispatch Services during the same period last year. While there were Dispatch Services expenditures incurred in January 2022, timely reporting has been enhanced in 2023 compared to prior years. Public Works reported an increase on the previous year of $117,059. The significant portion of the increase has been traced to Facilities Maint. / Ins -Property. January 2022 expenditures for this insurance cost was $346,858. January 2023 costs was $438,917, representing a total increase of $92,059. Overall, the General Fund departments reported actual spending of 3.5% ($190,391) less than the same period last year. 8 INFORMATIONAL MEMO Page 3 The graph below shows the Annual Budget, Actual Expenditures, and Allocated Budget amounts for the General Fund departments. City Council U Mayor's Office Administrative Services Finance Department Recreation Department/ Park Maintenance Community Development (DCD) Municipal Court ii Police Department Fire Department mu Public Works Dept / Street Maintenance 0 500 1,000 1,500 2,000 2,500 Thousands ■ Actual Expenditures ■ Allocated Budget Per ordinance, the City adopts a biennial budget by fund. This is the required level of reporting for external authoritative sources of oversight such as of the Washington State Auditor's office. This level of reporting is also utilized for purposes of debt issuance and by other stake holders. For managerial reporting and internal use, the city reports activity at the department level. This provides more details and additional information used by decision makers within the city and those charged with governess. In an effort to provide an enhanced level of reporting, additional information is being provided for activity at the transaction level that reflect an increase of more than 5% over the prior year AND $50,000. 9 INFORMATIONAL MEMO Page 4 The table below to displays 2022/2023 change in spending by $ and % for informational purposes. As of the end of January, there was one line item that reported an increase of more than 5% AND $50,000. General Fund City of Tukwila General Fund Expenditures Year -to Date as of Jan 31, 2023 % of Year 8.3% Professional Services is the only line item that reported an increase over the same period last year of both greater than 5% and $50,000. The majority of the increase is shared between Police ($360,984) and Fire ($127,311). The increase with Police is attributable to Dispatch Services and an increase in PD Admin / Ins Liability insurance premiums over the same period last year. Fire 10 BUDGET ACTUAL COMPARISON OF RESULTS 2023 Annual 2023 Allocated 2021 2022 2023 Allocated Budget vs Allocated OVER/(UNDER) % Expended Change $ 2022/2023 2022/2023 511 Salaries 25,787,016 2,148,919 2,351,288 2,454,294 1,942,606 (206,313) 7.5% (511,688) (20.8%) 512 Extra Labor 769,106 39,670 335 21,795 29,116 (10,554) 3.8% 7,320 33.6% 513 Overtime 755,184 46,724 139,198 233,720 146,202 99,478 19.4% (87,517) (37.4%) 515 Holiday Pay 250,000 963 2,560 765 0 (963) - (765) (100.0%) 521 FICA 2,110,086 175,841 144,469 155,507 158,801 (17,040) 7.5% 3,295 2.1% 522 Pension-LEOFF 635,410 46,784 68,920 73,834 43,799 (2,985) 6.9% (30,036) (40.7%) 523 Pension-PERS/PSERS 1,744,919 145,410 133,928 119,230 127,576 (17,834) 7.3% 8,346 7.0% 524 Industrial Insurance 586,183 48,849 45,845 39,511 32,502 (16,347) 5.5% (7,009) (17.7%) 525 Medical & Dental 5,748,432 479,036 515,036 608,100 449,808 (29,228) 7.8% (158,292) (26.0%) 526 Unemployment 0 0 0 0 0 0 #DIV/0! 0 #DIV/0! 528 Uniform/Clothing 33,290 9,191 0 0 0 (9,191) - 0 #DIV/0! Total Salaries & Benefits 38,419,627 3,141,387 3,401,579 3,706,755 2,930,411 (210,976) 7.6% (776,344) (20.9%) 531 Supplies 678,334 55,818 32,350 (12,058) 8,326 (47,492) 1.2% $20,385 (169.1%) 532 Repairs & Maint Supplies 450,010 37,239 11,551 0 6,286 (30,953) 1.4% $6,286 #DIV/0! 534 Resale Supplies 2,500 200 0 0 0 (200) - $0 Null 535 Small Tools 213,203 17,717 2,118 0 172 (17,545) 0.1% $172 #DIV/0! 536 Technology Supplies 110,798 9,233 772 0 2,499 (6,734) 2.3% $2,499 #DIV/0! 537 Fleet Supplies 7,000 583 36 0 150 (433) 2.1% $150 #DIV/0! Total Supplies 1,461,845 120,790 46,827 (12,058) 17,433 (103,357) 1.2% $29,491 (244.6%) 541 Professional Services 21,798,537 1,708,114 1,131,526 1,204,343 1,858,959 150,845 8.5% $654,616 54.4% 542 Communications 440,528 35,666 24,359 (200) 14,770 (20,896) 3.4% $14,970 (7,484.9%) 543 Professional Developmer 570,359 65,203 16,383 70,637 108,736 43,533 19.1% $38,100 53.9% 544 Advertising 66,300 10,867 334 0 0 (10,867) - $0 #DIV/0! 545 Rentals 1,298,059 24,896 10,225 5,930 5,912 (18,984) 0.5% ($18) (0.3%) 546 Technology Services 1,031,264 180,144 10,000 159,407 151,756 (28,388) 14.7% ($7,651) (4.8%) 547 Utilities 2,244,354 164,248 7,996 14,300 41,752 (122,496) 1.9% $27,452 192.0% 548 Repairs & Maint Services 1,286,418 108,160 153,220 144,732 1,588 (106,572) 0.1% ($143,144) (98.9%) 549 Miscellaneous 1,012,899 81,903 3,177 22,593 6,520 (75,383) 0.6% ($16,073) (71.1%) Total Services 29,748,719 2,379,201 1,357,220 1,621,740 2,189,992 (189,209) 7.4% 568,252 35.0% 561 Capital Outlay -Land 0 0 0 0 893 0 - 0 - 563 Other Improvements 0 0 0 0 0 0 - 0 - 564 Machinery & Equipment 420,000 7,500 0 49,499 0 (7,500) - (49,499) (100.0%) 565 Construction Projects 0 0 0 0 37,709 Total Capital Outlay 420,000 7,500 0 49,499 38,602 (7,500) 9.0% (11,790) (23.8%) 750 Transfers Out 5,706,078 0 0 0 0 (5,706,078) - 0 #DIV/01 Total Non Operating Expense 5,706,078 0 0 0 0 (5,706,078) - 0 #DIV/0! TOTAL EXPENDITURES 75,756,269 5,648,878 4,805,627 5,365,936 5,176,438 (6,217,120) 6.8% (190,391) (3.5%) % of Year 8.3% Professional Services is the only line item that reported an increase over the same period last year of both greater than 5% and $50,000. The majority of the increase is shared between Police ($360,984) and Fire ($127,311). The increase with Police is attributable to Dispatch Services and an increase in PD Admin / Ins Liability insurance premiums over the same period last year. Fire 10 INFORMATIONAL MEMO Page 5 reported a large increase in Contracted Services. This is due to the contract for services. In 2022 these costs were reported a salary and benefits. 11 12 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Laurel Humphrey, Legislative Analyst Cheryl Thompson, Executive Assistant, Mayor's Office DATE: March 7, 2023 SUBJECT: Board & Commission Appointments ISSUE On January 9, 2023, the City Council requested a committee review of the current process for Board & Commission appointments. BACKGROUND The city is assisted in several operational areas by boards and commissions comprising members of the community. Residents and business representatives serve an important function by volunteering their time and expertise as members. In most cases, members are appointed by the Mayor and confirmed by the City Council. Operational information about boards and commissions is located in the Municipal Code, the By -Laws of each group, and in the Boards & Commissions Handbook. Recruitment Vacancies are currently promoted on the City website, social media, community events, word-of-mouth, in the City Administrator Report and in the Hazelnut and/or e -Hazelnut. The Mayor, Councilmembers and currently seated members play an important role in recruitment by spreading the word to constituents across the city and by making a personal ask to qualified individuals. The Equity and Social Justice Commission provided input on equitable outreach in 2019. The annual member review and recruitment process is described in further detail in the attached Administrative Policy. Appointment Process In 2019, the Community Development and Neighborhoods Committee reviewed the appointment and reappointment process, and made several suggested changes: • Online application • Statement of Interest section on application form • Optional personal/demographic section on application form • Requiring reapplication form for those interested in additional terms These changes were incorporated, and a new Administrative Policy was created to "establish and provide consistent procedures for the review and selection of community members to serve on boards, commissions, and committees. 13 INFORMATIONAL MEMO Page 2 Qualifications, Requirements & Representations Boards and commissions have varying requirements regarding community residency or business affiliation. Members are subject to Tukwila Municipal Code Chapter 2.05, Code of Ethics for Employees and Appointed Officials. Members must sign a Conflict of Interest Disclosure Form and Ethics, Open Public Meetings Act, Public Records Act and Equity Policy Training Certification Form within 90 days of appointment or reappointment. This year, a new central repository has been created so that the Mayor's Office can quickly verify that forms for all board and commission members have been completed and are on file. Term Limits There are currently no term limits for any of the City's Boards and Commissions. A cursory review of other Washington cities revealed this is more often the case, although an example of a city that does include term limits is Burien, which is a Council/Manager form of government. In Burien, board and commission members "may not serve more than two consecutive full terms. After a two-year absence, members may be reappointed subject to the membership requirements stated above." (BMC 2.50.020(6)). Staff does not currently recommend imposing term limits due to the challenge in finding volunteers in a city of this size. Social Security Number Requirement During the City Council's initial discussion, a question was raised regarding the requirement for applicants to provide a social security number. This is a requirement of the third -party vendor used to conduct the background checks for all of the city's volunteers. Social security numbers are redacted from Council meeting packets and are not disclosable upon records requests. Mayor's Selection Process When an application is received a copy of the application is provided to the Mayor. In the past, depending on the application, the Mayor has contacted the applicant directly to discuss their interests or sought a staff liasion to do so. In those instances where the Mayor makes contact, he then reaches out to staff l to contact the applicant to discuss the Board or Commission and determine if the appointment would be a good fit for the applicant. The Mayor then asks staff fora recommendation. On occasion the Mayor has asked staff to schedule an interview with the applicant. On those occasions the Mayor has included the staff liaison and the Chair of the Commission in the interview process. Specifically, when a term is ending, the incumbent is asked to complete a reappointment application if they are interested in being reappointed. Reappointment Applications are sent out in early -mid September each year, with a deadline to respond by October 15. At the same time an ad is submitted for the October Hazelnut that advertises all positions where the term is ending with a deadline to submit an application by November 15. The ad for the October Hazelnut is due mid-September. Between October 15 and November 15 staff liaisons are advised on the members that submitted Reappointment Applications and asked to provide feedback about the reappointments to the appointing authority, considering factors like attendance regularity, objectivity, and effectiveness. After November 15 the Executive 14 INFORMATIONAL MEMO Page 3 Assistant provides the Mayor with the any Reappointment Applications received, and any new applications received for those positions. The Mayor reviews that information as part of the decision-making process, along with appropriate staff liaison, and provides his recommendations to the Executive Assistant to prepare an Memo to Council. When considering reappointment, the Mayor considers factors such as attendance, participation and effectiveness. Historically, Mayor Ekberg has recommended reappointment, however there have been times where he decided not to reappoint and found out the individual didn't reapply, or has appointed a new member to a position rather than the incumbent who had sought reappointment. RECOMMENDATION Staff is seeking committee feedback on the appointment process as outlined in the attached administrative policy. ATTACHMENTS Administrative Policy 100-17 15 16 , qsy 0100-17 k CITY OF TUKWILA '1'P4) POLICY 2906 Definitions • Board: A semi -autonomous body established pursuant to a city ordinance. • Commission: A body established pursuant to state statute and a city ordinance to study and recommend action to the City Council with the exception of the Civil Service Commission. • Committee: A body appointed by the City Council with a specified task or function. Page 1 of 4 Board, Commission and Committee Appointment Process Purpose: To establish and provide consistent procedures for the review and selection of community members to serve on City boards, commissions and committees. Definitions • Board: A semi -autonomous body established pursuant to a city ordinance. • Commission: A body established pursuant to state statute and a city ordinance to study and recommend action to the City Council with the exception of the Civil Service Commission. • Committee: A body appointed by the City Council with a specified task or function. Policy and Procedures: Advisory bodies provide guidance to decision -makers and bring public participation into government activities. The City of Tukwila's boards, commissions and committees provide invaluable service to the City. Authority: The Mayor of Tukwila and the Tukwila City Council are specifically empowered by state law and the Tukwila Municipal Code to fill by appointment all boards, commissions and committees in compliance with the Revised Code of Washington and the Tukwila Municipal Code. The Mayor's Office is responsible for the oversight and administration of the process by which the advisory boards, commissions and committee program is managed. Appointment Criteria: To be considered for appointment each applicant must meet at least one of the following criteria: • Be a resident of the City of Tukwila for a resident or community position; • Be employed in the City of Tukwila for a business representative position; • Be a Tukwila School District Representative for a school district position; or • Be a High School Student in the City of Tukwila for a student representative position. Applicants must also successfully complete a background check. Qualifications vary for each board, commission and committee and are specifically outlined in the Tukwila Municipal Code. Appointment Process: Interested applicants must submit a completed Boards, Commissions and Committees application to the Mayor's Office. Applications are available on the city's website at www.tukwilawa.gov/departments/mayors-office/boards-and-commissions. Applications for the Arts Commission, Community -Oriented Policing Citizens Advisory Board, Equity and Social Justice Commission, Human Services Advisory Board, Library Advisory Board, Landmark Advisory Board, Park Commission, Planning Commission, SeaTac Airport Stakeholder Round Table and Special Committees appointed by the Mayor: When an application is received, an email is sent to the applicant acknowledging receipt of the application and letting them know the application is under review. A background check is conducted and once complete the application is sent to the staff liaison for the 17 Board, Commission and Committee Appointment Process 100-21 Page 2 of 4 18 Board or Commission the applicant is interested in. A copy of the application is also provided to the Mayor. The Mayor may contact the applicant directly, ask the staff liaison to contact the applicant or schedule an interview with the applicant. If an interview is scheduled with the applicant, the Council President is invited to participate. When the Mayor has determined the applicant to recommend for appointment the Executive Assistant will schedule the appointment recommendation to go before Council for confirmation at an upcoming Regular Council Meeting. An Informational Memorandum recommending the appointment is prepared and distributed to the City Council by email and internal mail no fewer than three weeks before the scheduled Council Meeting. A copy of the application with address, phone number and emails redacted is attached to the Informational Memorandum. After the councilmembers have had a few days to review the memo, a letter is sent to the applicant notifying them that the Mayor has recommended their appointment, pending confirmation of the City Council and inviting them to attend the upcoming Council meeting where their confirmation is on the agenda. Applications for Civil Service Commission: When an application is received an email is sent to the applicant acknowledging receipt of the application and letting them know the application is under review. A background check is conducted and once complete the application is sent to the staff liaison for the Civil Service Commission. A copy of the application is also provided to the Mayor. The Mayor may contact the applicant directly, ask the staff liaison to contact the applicant or schedule an interview with the applicant. Per RCW 41.08.030 and 41.12.030 appointments to the Civil Service Commission are made by the Mayor and do not go before City Council for confirmation. Applications for the Lodging Tax Advisory Committee (LTAC): When an application is received an email is sent to the applicant acknowledging receipt of the application and letting them know the application is under review. A background check is conducted and once complete the application is sent to the staff liaison for LTAC. The staff liaison will coordinate with the Councilmember serving as LTAC Chair as LTAC appointments are made by the City Council. An Informational Memorandum recommending the appointment is prepared and distributed to the City Council by email and internal mail approximately three weeks before the scheduled Council Meeting. A copy of the application with address, phone number and emails redacted is attached to the Informational Memorandum. After the councilmembers have had a few days to review the memo, a letter is sent to the applicant notifying them that the Council President has recommended their appointment, pending confirmation of the full City Council and inviting them to attend the upcoming Council meeting where their confirmation is on the agenda. Applications for Special Committees appointed by Council: When an application is received an email is sent to the applicant acknowledging receipt of the application and letting them know the application is under review. A background check is conducted and once complete the application is sent to the staff liaison for the Committee. The staff liaison will notify the Council President and/or relevant standing Committee Chair and schedule the appointment to go through the Council's legislative process, which may include a standing Council Committee. Board, Commission and Committee Appointment Process 100-21 Page 3 of 4 Appointee Requirements: Every member of an advisory board, commission or committee must sign a Conflict of Interest Disclosure Form and Ethics, OPMA, PRA and Equity Training Certification Form within 90 days of appointment or reappointment. Forms and links to the trainings are located in the Boards and Commissions Handbook. Applicants Not Appointed: If an applicant applies for a position and is not appointed, they are sent a letter thanking them for applying, notifying them they were not appointed, providing information on any vacant positions, if applicable, and letting them know that their application will be kept on file for one year. Resignations: When a member resigns from their position before the end of the term, the vacancy is advertised, and a new member is appointed to serve the remainder of the term. A letter is sent to the member thanking them for their service. Vacant Positions: Vacant positions are advertised in the Hazelnut newsletter, on TukTV, on the City's website, on social media and in the City Administrator's report in the City Council meeting packets. Reappointment Process: Terms for positions range between two years and six years depending on the Board or Commission. All positions expire December 31 at the end of the term. In September of each year the Mayor's Office will contact all incumbent members with terms expiring at the end of the year to determine if they are interested in reappointment. If the incumbent is interested in being reappointed, they will complete the Reappointment Application and submit it to the Mayor's Office by October 15. The Mayor's Office will notify the Board, Commission and Committee staff liaisons which incumbents have applied for reappointment. The staff liaison will have until November 15 to provide any feedback about the reappointments to the appointing authority, considering factors like attendance regularity, objectivity, and effectiveness. All positions with terms ending will be advertised in the October edition of the Hazelnut newsletter and through other City venues with applications due by November 15. All applications, both reappointment and new, will be reviewed and an Informational Memorandum with appointment and reappointment recommendations will be provided to City Council no later than December 7. All appointments and reappointments for terms that expire December 31 are scheduled for the first Council meeting in January. Recognition: The Mayor will send a letter of appreciation and thanks to each member of a board, commission or committee upon the completion of a term. Records: The Mayor's Office shall maintain records of persons who have applied for a vacancy on a given board, commission or committee for one (1) year after each filing period. If a position should become vacant during that timeframe, the applicant will be considered for the position. 19 Board, Commission and Committee Appointment Process 100-21 Page 4 of 4 Current Boards, Commissions and Committees Term Length Appointment Authority Governing Legislation Arts Commission 4 years Appointed by Mayor Confirmed by Council TMC 2.30 Civil Service Commission 6 years Appointed by Mayor RCW 41.08 RCW 41.12 TMC 2.42 Board of Ethics 1 year Comprised of the Chair from each of the Commissions TMC 2.97.040 Community -Oriented Policing Citizens Advisory Board (COPCAB) 4 years Appointed by Mayor Confirmed by Council TMC 2.39 Equity & Social Justice Commission 2 years Appointed by Mayor Confirmed by Council TMC 2.29 Human Services Advisory Board 3 years Appointed by Mayor Confirmed by Council TMC 2.34 Landmark Commission 3 years Appointed by Mayor Confirmed by Council TMC 16.60 Library Advisory Board 2 years Appointed by Mayor Confirmed by Council TMC 2.33 Lodging Tax Advisory Committee (LTAC) 1 year Appointed by Council TMC 2.35 Park Commission 3 years Appointed by Mayor Confirmed by Council TMC 2.32 Planning Commission 4 years Appointed by Mayor Confirmed by Council RCW 35A.63 TMC 2.36 SeaTac Airport Stakeholder Round Table (StART) 2 years Appointed by Mayor Confirmed by Council StART Operating Procedures Board, Commission and Committee Appointment Process Initiating Department: Mayor's Office Effective Date: 1/24/2022 Supersedes: 9/12/2019 Mayor's Office Approval Signature: 20 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance FROM: David Cline, City Administrator Vicky Carlsen, Finance Director BY: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: March 6, 2023 SUBJECT: Public Works Operations Campus Phase 2, Financing Report (DRAFT) ISSUE Follow up on the February 27, 2023 Finance and Governance Committee meeting regarding financing for Public Works Operations Campus, Phase 2. At the meeting the Committee asked staff to provide information on various items. This memo begins the process of creating a consolidated document to address the Committee's questions. The memo below is organized to address the topics staff heard in the Committee meeting. The memo will be updated throughout the Spring to address the items raised by the Committee and new items that might be added as the process continues, BACKGROUND I. Overview of the Public Safety Plan and Public Works Phase Operations Campus The following provides a brief overview of the City's recent investment in public facilities over the last 15 years. Development of the Public Safety Plan In 2008 the City completed a comprehensive seismic study of city buildings, which was recently updated in 2022. This report found that several buildings, including fire stations and public works shops, would be unusable after an earthquake. It was this study that was the impetus for the City to begin examining how to invest in upgraded facilities, specifically public safety buildings (fire stations, police, municipal court, emergency management and public works functions). In 2015, after a two-year process, the City Council was presented a report entitled, "Investing in Tukwila: Essential Governmental Services Facilities Plan 2015-2040." The plan recommended the construction and/or replacement of several public safety buildings, including a new justice center to house police, emergency management and municipal court; the replacement of three fire stations; and a combined public works operations facility. The plan also included recommendations for City Hall and the 6300 building. This final report was presented to the City Council by the Facilities Committee, made up of community members, councilmembers and staff. This Committee recommended a public safety facilities ballot measure, which results in the City Council adopted "Public Safety Plan" to prioritize: • the construction of three replacement fire stations, 21 INFORMATIONAL MEMO Page 2 • a new justice center (police, emergency management and municipal court), • a consolidated public works shop, and • a funding plan for 20 years of fire apparatus and equipment. In November 2016 Tukwila voters approved the public safety plan bond measure with 60.5% approval. Funds from the bond measure were used for the new fire stations, fire equipment and apparatus and the justice center. Separately, funding for the public works facilities would come from a variety of sources, including general fund and utility funds. In 2018, this financing and expenditure plan was updated with the D-20 Model, adopted by the City Council and discussed further below. In 2018 the City began to identify and acquire land for the public safety plan, based upon the recommendations of the community Siting Advisory Committee. Existing City owned land was used for two of the new fire stations (51 and 52); the City assembled land on Tukwila International Blvd for the Justice Center; and the City acquired three parcels in the north end of the City for a consolidated public works shop. Public Works Operations Campus Phase 1 (hereinafter "Public Works Phase 1") entailed the construction of the west side of the property and moving the City's fleet and facilities functions from George Long to the new site. Public Works Phase 2 will entail work on the east side of the property and will eventually allow the City to move the street and utilities functions from the Minkler Shops to the site, as well as consolidating other functions currently found on other sites, such as spoils storage, etc. The Justice Center and Fire Station 51 went operational in 2020 and Fire Station 52 become operational in 2021. The Fleet and Facilities building became operational in 2022 (Public Works Phase 1). In 2022, the City Council authorized the test to fit work for the eastern portion of the Public Works Phase 2 - Operations Campus, which will conclude in March of 2023. The Public Works Operations Campus is the final project remaining from the Public Safety Plan. Funding for design of the Public Works Operations Campus was adopted in the 2023-2024 Budget and construction costs were included the 2023-2028 Capital Improvement Plan starting in 2025. Financing the Public Safety Plan- the D-20 Model In 2018, due to cost escalation from market conditions and initial estimates based on incomplete data, the City created options for the Public Safety Plan. Throughout the first half of 2018, the City Council's Finance Committee, together with staff, deliberated on a variety of financing options (A, B, Cl, C2 and D) to support the Public Safety Plan. In June 2018, the City Council adopted their recommendation of option D-20 which directed the: • Construction of two new fire stations (51 & 52) and the Justice Center • Dedication of $30 million for land acquisition, building upgrades and master planning for public works shops • Fire apparatus and equipment funding for ten years • Issuance of 20 -year bonds • Use of a variety of financial sources (e.g. Limited Term General Obligation Bonds (LTGO), Fire impact fees, land sales and one-time funds, ongoing REET 1, General Fund.) This long-range model — D20 - (2018-2039) has been updated several times to reflect changing revenues and expenditures. 22 INFORMATIONAL MEMO Page 3 1. All major projects in the D-20 model are now complete as originally anticipated in 2018. The following is a basic overview of the revenue and expenditures to date in the D-20 Model. The work outlined below includes all land acquisition costs (Justice Center, Fire Station 54, and Public Works Operations Campus) construction to date for Fire Stations 51 and 52, Justice Center and Public Works phase 1 (fleet and facilities); interim improvements on Minkler; and planning and test to fit associated with Public Works Phase2. In addition, the initial planning for the Teen and Senior Center was funded from unused budget leftover from the Justice Center and therefore funded from the D-20 model. The only remaining items are finishing the roof and siding updates for the Public Works Phase 1 and the final payment for the 2022 fire engine, which is expected in 2025. 2. The D-20 Model accounted for all financial aspects of these projects. Data incorporated two capital project funds, 305 and 306 as well as all debt service funds and other funds that contributed funding sources (general fund, 301, utility funds). Note, revenues are forecasted to be higher than expenditures due to financing costs. 3. Other Changes. Sales Tax Mitigation funds were significantly reduced from 2019 to 2020 due to the loss of ongoing Sales Tax Mitigation payments. Council adopted CARES funding for project costs associated with COVID supply chain delays and added Teen/Senior Center planning from unspent Justice Center budgeted funds. Additional general fund and utility fund payments were adopted in 2022 to continue the public safety plan efforts for the consolidated public works shop. 4. Assuming a successful annexation vote to the Puget Sound Regional Fire Authority (PSRFA), capital acquisition responsibilities for future fire equipment and apparatus shift to PSRFA in 2025. A portion of the proceeds from completed land sales (Travelers Choice and HealthPoint) and approved (still pending) George Long sale are currently budgeted to support remaining public safety plan financing requirements as well as Public Works Phases 1 and 2. 5. Land Sales, originally contemplated in the D-20, are no longer required in their entirety. a. The updated D-20 model (December, 2022) removes future land sales. b. Future City Council direction will be needed on use of land revenue (e.g. lease or sale) for capital facility planning. 23 INFORMATIONAL MEMO Page 4 D-20 MODEL FINANCIAL SNAPSHOT 2018-2022 Original Updated Updated Updated June 2018 Dec 2019 Dec 2020 Dec 2022 EXPENDITURES Fund 305: Public Safety Plan $ 114,730,235 $ 122,627,139 $ 120,510,023 $ 109,804,786 Justice Center $ 68,570,005 $ 66,864,711 $ 65,747,697 $ 65,995,940 Fire Stations $ 30,334,435 $ 39,936,632 $ 38,936,530 $ 37,791,730 Fire Equipment/Apparatus/Financing $ 15,825,796 $ 15,825,796 $ 15,825,796 6,017,117 Fund 306: City Facilities $ 30,000,000 $ 35,700,000 $ 36,200,000 $ 43,150,491 PW Shops Phase I $30,000,000 $35,700,000 $35,700,000 $36,405,462 Minkler Improvements $500,000 $500,000 Teen/Senior Center $395,030 PW Operations Campus Phase 2 $5,850,000 TOTAL $144,730,235 $158,327,139 $156,710,023 r- $152,955,277 REVENUES Voted Bonds (UTGO) $ 77,385,000 $ 77,997,026 $ 77,997,026 $ 77,997,026 Councilmanic Bonds (LTGO) $ 40,000,000 $ 45,500,600 $ 45,500,600 $ 45,500,600 Fire Impact Fees (Tukwila South- FS 51) $ 4,750,000 $ 4,750,000 $ 4,750,000 $ 4,750,000 Fire Impact Fee- ongoing $ 8,517,000 $ 9,817,000 $ 9,497,000 $ 8,244,202 Fund 301 Transfer- REET Funds $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,500,000 Land Sales $ 15,038,000 $ 13,053,090 $ 13,518,000 3,014,845 REET 1- Ongoing Support $ 12,813,091 $ 12,813,091 $ 12,852,409 $ 11,000,000 Sales Tax Mitigation $ 4,017,425 $ 665,909 $ 665,909 Cares Act $ 300,000 $ 497,247 Investment Earning $ 707,845 $ 1,480,824 $ 1,725,661 $ 1,626,356 Project Contribution (TeenSenior) $ 600,000 Project Contribution (General Fund) $ 141,854 $ 2,991,854 $ 2,991,854 $ 5,950,954 Project Contribution (Utility Fund) $ 141,854 $ 3,791,854 $ 4,291,854 $ 7,791,854 TOTAL $ 162,494,644 $ 179,212,764 $ 177,090,313 $ 171,138,993 Completing the Public Safety Plan — Design and Construction of Public Works Phase 2 The last remaining item in the Public Safety Plan is Public Works Phase 2 Operations Campus in order to move city operations from the Minkler Shops and the Longacres site. The City is still providing critical public works activities at the Minkler Shops under older, inefficient conditions. In addition, as part of the Public Safety Plan the City identified a goal to move all critical facilities out of flood -prone areas and the Minkler Shops is located directly behind a levee that has significant concerns. The Army Corps of Engineers has identified there is a risk of levee failure in the event of a high-water event or earthquake. Public Works has moved from George Long into Public Works Phase 1. On November 1, 2023 the City takes ownership of the eastside of the property and the Council adopted a lease agreement until March 1, 2025 with the current tenant. The City Council authorized the "test -to - fit" work which developed design options for the entire combined public works site. The "test -to - fit" will provide the City better cost estimates for the final phase of the project. In March 2023, the "test -to -fit" will be completed and the City Council will be briefed on cost estimates for the full buildout and completion of Public Works Phase 2. The City Council will be asked to move forward with the Public Works Phase 2 design. The 2023-2024 budget includes $5.85 million for the City to complete the design work and permitting for Public Works Phase 2, with construction anticipated to begin in May of 2025. 24 INFORMATIONAL MEMO Page 5 II. Public Works Operations Campus, Phase 2 Financing a. The Next D-20 Model, Public Works Campus Financial Model The D-20 model was a successful tool the City Council approved to track all expenditures and revenues associated with the construction of the Public Safety Plan. A similar model focused on the Public Works Campus will need to be developed separately from the original D-20 model. The table below is a preliminary overview of the current construction estimates in 2023 dollars, cost escalation, and soft costs. ($ millions) Construction Estimates 2023 Estimates Project Related (Soft) Cost Construction Costs (2023 dollars) Total: Estimated Expenditures (2023 values): $ 29,352 $ 46,835 $ 76,187 January 2026 Escalation': $ 0 $7,678 $7,678 2026 Adjusted Totals: $29,352 $ 54,513 $ 83,865 Sources of Funds 2023/2024 Adopted Budget Utility Funds: Project Related (Soft) Cost Construction Costs (2023 dollars) Total: $ 3,000 N/A $ 3,000 Lease Revenue (eastern public works property): $ 980 N/A $ 980 306 Fund Balance: $ 1,964 N/A $ 1,964 Total: $ 5,944 N/A $ 5,944 2025/2026 CIP Construction Phase (construction and soft costs merged) Utility Funds (Bond supported): $ 21,750 $ 21,750 Councilmanic Bonds: $ 21,750 $ 21,750 Lease Revenue (eastern public works parcel): $0 $0 306 Fund Balance: $ 10,500 $ 10,500 11 January 2026 is the midpoint of construction. The current schedule has construction commencing on May 1, 2025. 25 26 INFORMATIONAL MEMO Page 6 Total: $ 54,000 $ 54,000 Total Additional $ 23,921 Funds Needed in 2026: Possible Additional • Enterprise Funds2: Councilmanic Bonds (General Fund) Sources of • Land Sales Revenue (One Time) Revenue • Land Lease Revenue (Ongoing, support debt service) • Sales Tax Credit Back to Project (One Time) • Permit Fee Credit Back to Project (One Time) • Grants (One -Time): Federal and/or State Appropriations • Decant Facility Capital Contribution (Ongoing or onetime) • REET Funds b. Bond Capacity Information to be added. c. Construction Delay Costs Construction is currently anticipated to begin on May 1, 2025, shortly after the existing tenant's lease expires. Current estimates are that for every month in delay the project's construction costs would increase approximately $300,000 per month. d. Phasing of the Project A question came up at the February 27 Finance and Governance Committee meeting regarding a previously discussed phase 3 of the project. This comment seemed to be related to cost management and reducing the scope of the current project. In 2019 the City Council authorized SHKS Architects to do site design planning for the public works shop site. A copy of the conceptual site design planning, including a three -phased total project is shown in the attachment provided. That proposed phasing would have resulted in the City demolishing and moving out of the Fleet and Facilities building. However, the City Council directed staff not to pursue the three phase plan and to instead plan around the Fleet and Facilities building remaining in its current location. The City Council also provided additional funds to improve the seismic status of the building to be one that can be useable after an earthquake. Staff has taken this direction from Council and the project does not currently include a third phase and assumes the Fleet and Facility building will remain for the useful life of the building. Staff is working with the SOJ and Miller Hayashi to understand what, if any possible staging might be possible to the current Phase 2 program. However, most of the significant cost items will need to be completed early in the project. There might be some initial cost deferrals for the delaying construction of the proposed decant facility, but these would be cost deferrals and could result in added costs since construction costs would likely continue to rise. 2 Upon completion of the project, the city will true up all costs associated with Public Works Operation's Campus. INFORMATIONAL MEMO Page 7 Ill. List of City Facilities Name Year Built Seismic Risk Risk Assessment Estimated Value Recent Improvements Can be surplus? Other? HealthPoint (already sold) Information to be added. Information to be added. Information to be added. George Long (proceeds currently dedicated. 1/2 to repay debt service and 1/2 for PW Shops soft costs) Information to be added. Information to be added. Newporter Information to be added. Information to be added. Old Fire Station 51 Information to be added. Information to be added. Old Fire Station 52 (one parcel that includes old city hall and Hazelnut Park; deed restricted; can't be sold. Would revert back to the Tukwila School District if not in community use). Information to be added. Information to be added. Old Fire Station 53 (Allentown) Information to be added. Information to be added. Longacres Information to be added. Information to be added. IV. Monetization of Surplus City Properties The City has been exploring possible ways to monetize (sale or lease) several city properties that could be surplus. Property Name Status Estimated Value Travelers Choice (already sold) Information to be added. Information to be added. HealthPoint (already sold) Information to be added. Information to be added. George Long (proceeds currently dedicated. 1/2 to repay debt service and 1/2 for PW Shops soft costs) Information to be added. Information to be added. Newporter Information to be added. Information to be added. Old Fire Station 51 Information to be added. Information to be added. Old Fire Station 52 (one parcel that includes old city hall and Hazelnut Park; deed restricted; can't be sold. Would revert back to the Tukwila School District if not in community use). Information to be added. Information to be added. Old Fire Station 53 (Allentown) Information to be added. Information to be added. Longacres Information to be added. Information to be added. 27 INFORMATIONAL MEMO Page 8 6300 Building Information to be added. Information to be added. Minkler Shops Information to be added. Information to be added. V. Intergenerational (Teen/Senior) Center Update Information to be added. VI. Minkler Shops and Levee Issues Information to be added. VII. Public Works Phase 2 Specific Questions a. Can Public Works Phase 2 Be Done in Stages? b. Can spoils be located somewhere else doing design and construction phase? c. Other DISCUSSION Information to be added. FINANCIAL IMPACT Information to be added. RECOMMENDATION This is intended to be a dynamic memo to be updated throughout spring to present a comprehensive report to the full City Council. ATTACHMENTS • SHKS Architects Phasing Outline 28