HomeMy WebLinkAboutFIN 2023-05-08 Item 1B - Public Safety Plan - Capital Facilities Financing for Public Works Campus Phase 2
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
Updated, March 21, 2023
Updated, April 3, 2023
Updated May 1, 2023
SUBJECT: Capital Facilities Financing, Public Works Campus, Phase 2 Report
ISSUE
This memo outlines the design costs, financing, and estimated construction cost for Public
Works Operations Campus, Phase 2 (hereinafter “Public Works Phase 2”) capital construction
project. Working drafts of this memo have been presented to the Finance and Governance
Committee on March 13, March 27, and April 10.
Staff is requesting authorization to execute contracts for full design and pre-construction of
Public Works Phase in the amount of $5,195,141, with an additional $779,271 being set aside
as owner’s contingency. The design and pre-construction work is anticipated to run from
contract execution in 2023 through the start of the construction phase in May of 2025.
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.
a. 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.
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This final report was presented to the City Council by the Facilities Committee, made up of
community members, council members, and staff. This Committee recommended a public
safety facilities ballot measure, which resulted in the City Council adopting the “Public Safety
Plan” to prioritize:
the construction of three replacement fire stations,
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. Due to costs
the relocated Fire Station 54 was deferred.
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 in the 2023-2028 Capital Improvement Plan
starting in 2025.
b. Siting of the Consolidated Public Works Shops Facilities
As briefly discussed above, the City utilized a “Siting Advisory Committee” to assist with
identifying possible locations for the replacement fire stations, the new Justice Center, and the
Consolidated Public Works Shops Facilities. The City Council received the final report on the
recommendations of the Siting Advisory Committee on October 16, 2017.
Since all of the buildings constructed for the public safety plan, which includes the consolidated
Public Works Shops Facilities, have a public safety role, the City identified several critical siting
factors for the for the future locations:
The properties needed to be out of the floodplain and/or not protected by a levee. Old
Fire Station 51 did not meet this requirement and the new Fire Station 51 was located
just above the valley floor. Minkler Shops does not meet this requirement. 8
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Not be in a possible soil liquefaction area in order to mitigate risk during an earthquake.
Specific to the consolidated public works shops was that the property not be located in
residential areas.
All facilities had to be permitted in the City’s underlying zoning.
Based upon this broad criterion, the City Siting Advisory Committee examined a total of ten
parcels, all in the City’s Manufacturing Industrial Center zoning classification. Three parcels
were ultimately recommended by the Siting Advisory Committee and the City Council authorized
the use of eminent domain to acquire the properties. The City reached deals with all three
property owners and has or will take title to all the properties by November 1, 2023.
c. 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, C1, 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.
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. 9
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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.
c. Completing the Public Safety Plan – Design and Construction of Consolidated
Public Works Shops, Phase 2
The last remaining item in the Public Safety Plan is Public Works Phase 2. This will allow the
City to move off of the Minkler Shops 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.
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 $152,955,277
REVENUES
Voted Bonds (UTGO) 77,385,000$ 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$
D-20 MODEL FINANCIAL SNAPSHOT 2018-2022
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Public Works has moved from George Long into Public Works Phase 1. On November 1, 2023
the City takes ownership of the east side of the property and the Council adopted a lease
agreement through April of 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” was complete and the City Council was briefed on cost estimates
for the full buildout and completion of Public Works Phase 2.
d. Funding Test to Fit
Before moving straight to design, the City Council directed staff to do additional planning and
engagement with the City Council on the layout of the site, this was the “Test to Fit.” The total
budget for the Test to Fit work is $350,000. This work occurred in 2022 and 2023. The work will
be completed at or slightly below the budget. Funding for the Public Works Phase 2 has been a
50/50 split between the general fund and the utilities.
e. Test to Fit Design Concepts
The City Council as a whole and the Transportation and Infrastructure Committee were briefed
as the Test to Fit process proceeded. Additionally, an open house was hosted to solicit impact
from Tukwila community members. In March the project team presented to the City Council the
various layout concepts considered by the project team. Concept “A” (below) scored the highest
on the project team’s criteria and was also favored by Public Works Staff.
Contract Title Firm Cost
Test to Fit Design Miller Hayashi 203,337$
Geotech Exploration Langan 36,600$
Surveying David Evans and Associates 25,000$
Project Management Shiels Obletz Johnsen 78,238$
Total: 343,175$
Budget 350,000$
Remaining Contigency: 6,825$
2022 Actual Expenditures: 185,124
2023 Budget Expenditures: 164,876
Source of Funds
Utilities
Water: 28,029$
Sewer 15,663$
Surface Water 38,746$
Subtotal: 82,438$
Other Funds
General Fund: 82,438$
Test to Fit Analysis Cost
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II. Public Works 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. Using the D-20 model as
an example, staff has begun to put together a model that can used to track expenditures and
revenues associated with Public Works Phase 2. Like the D-20 model, the model can be used
to track the cash flow of the project, including the issuance of debt and annual debt payments.
The model can also be easily modified to program in specific situations and changes in the
funding and/or costs.
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i. Scenario 1, Base Model
The above model is the starting point for discussion. It assumes that the design and pre-
construction costs in 2023, 2024 and 2025 are paid for in cash. In 2025 the City would issue a
bond of just over $77 million to move forward with construction. It is likely that the City could
reduce debt payments by spreading the bond issuance over 2025 and 2026 (this is what we did
for the public safety bond) However, for simplicity the bond issuance was shown as occurring at
one time.
In 2026 the general fund would need to support debt payments of $2.6 million (discussed
below), while the utilities would provide $2.5 million in rent to the general fund to be on the site.
More discussion on the utilities rent payment is provided below. The general fund annual
contributions begin to drop starting in 2028 and will continue to drop as the rent for the utilities
increases based on a standard inflation rate.
Expenditures 2023 2024 2025 2026 2027 2028
Design and Pre-Construction: 1,725,000$ 2,875,000$ 1,374,412$ -$ -$ -$
Other Soft Costs:-$ 23,377,588$ -$ -$ -$
Total Soft Costs: 1,725,000$ 2,875,000$ 24,752,000$ -$ -$ -$
2023 Construction Cost Estimates:-$ -$ 23,417,500$ 23,417,500$ -$ -$
January 2026 Escalation:-$ -$ 3,839,000$ 3,839,000$ -$ -$
Total Hard Costs:-$ -$ 27,256,500$ 27,256,500$ -$ -$
Total Construction Costs: 1,725,000$ 2,875,000$ 52,008,500$ 27,256,500$ -$ -$
Debt Payments:-$ -$ -$ 1,557,812$ 5,168,232$ 5,168,232$
Total: 1,725,000$ 2,875,000$ 52,008,500$ 28,814,312$ 5,168,232$ 5,168,232$
Source of Funds 2023 2024 2025 2026 2027 2028
General Fund
Lease from UPS: 237,021$ 824,575$ 280,646$ -$ -$ -$
Potential Additional REET 1 Funds: 50,000$ 50,000$ 406,560$ -$ -$ -$
Land Sales: 300,000$ 500,000$ -$ -$ -$ -$
Exceed Funds from 302 Fund: 275,479$ 62,925$ -$ -$ -$
Other General Fund Contribution:-$ -$ -$ -$ -$ -$
Proceeds from Bonds:-$ -$ 79,448,400$ -$ -$ -$
General Fund Debt Service:-$ -$ 0 -$ 2,668,232$ 2,593,232$
Funding from Partners:-$ -$ -$ -$ -$ -$
Grants:-$ -$ -$ -$ -$ -$
Park Impact Fee:-$ -$ -$ -$ -$ -$
Subtotal: 862,500$ 1,437,500$ 80,135,606$ -$ 2,668,232$ 2,593,232$
Utilities
Water: 293,250$ 488,750$ 233,650$ -$ 850,000$ 875,500$
Sewer: 163,875$ 273,125$ 130,569$ -$ 475,000$ 489,250$
Surface Water: 405,375$ 675,625$ 322,987$ -$ 1,175,000$ 1,210,250$
Grants:
Subtotal: 862,500$ 1,437,500$ 687,206$ -$ 2,500,000$ 2,575,000$
Total All Sources: 1,725,000$ 2,875,000$ 80,822,812$ -$ 5,168,232$ 5,168,232$
Starting Year Balance:-$ -$ 28,814,312$ (0)$ (0)$
Ending Year Fund Balance:-$ -$ 28,814,312$ (0)$ (0)$ (0)$
(S1) Total Construction Estimates, No Land Sales Towards Construction, 5% Bond, 30 Year Bond
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ii. Scenario 2, Base Model, with Land Sales
The base model with land sales assumes $9.5 million in land sales by 2025. The general fund
debt contribution is reduced because of the land sales revenue.
Expenditures 2023 2024 2025 2026 2027 2028
Design and Pre-Construction: 1,725,000$ 2,875,000$ 1,374,412$ -$ -$ -$
Other Soft Costs:-$ 23,377,588$ -$ -$ -$
Total Soft Costs: 1,725,000$ 2,875,000$ 24,752,000$ -$ -$ -$
2023 Construction Cost Estimates:-$ -$ 23,417,500$ 23,417,500$ -$ -$
January 2026 Escalation:-$ -$ 3,839,000$ 3,839,000$ -$ -$
Total Hard Costs:-$ -$ 27,256,500$ 27,256,500$ -$ -$
Total Construction Costs: 1,725,000$ 2,875,000$ 52,008,500$ 27,256,500$ -$ -$
Debt Payments:-$ -$ -$ 1,557,812$ 4,550,244$ 4,550,244$
Total: 1,725,000$ 2,875,000$ 52,008,500$ 28,814,312$ 4,550,244$ 4,550,244$
Source of Funds 2023 2024 2025 2026 2027 2028
General Fund
Lease from UPS: 237,021$ 824,575$ 280,646$ -$ -$ -$
Potential Additional REET 1 Funds: 50,000$ 50,000$ 406,560$ -$ -$ -$
Land Sales: 300,000$ 500,000$ 9,500,000$ -$ -$ -$
Exceed Funds from 302 Fund: 275,479$ 62,925$ -$ -$ -$
Other General Fund Contribution:-$ -$ -$ -$ -$ -$
Proceeds from Bonds:-$ -$ 69,948,400$ -$ -$ -$
General Fund Debt Service:-$ -$ 0 -$ 2,050,244$ 1,975,244$
Funding from Partners:-$ -$ -$ -$ -$ -$
Grants:-$ -$ -$ -$ -$ -$
Park Impact Fee:-$ -$ -$ -$ -$ -$
Subtotal: 862,500$ 1,437,500$ 80,135,606$ -$ 2,050,244$ 1,975,244$
Utilities
Water: 293,250$ 488,750$ 233,650$ -$ 850,000$ 875,500$
Sewer: 163,875$ 273,125$ 130,569$ -$ 475,000$ 489,250$
Surface Water: 405,375$ 675,625$ 322,987$ -$ 1,175,000$ 1,210,250$
Grants:
Subtotal: 862,500$ 1,437,500$ 687,206$ -$ 2,500,000$ 2,575,000$
Total All Sources: 1,725,000$ 2,875,000$ 80,822,812$ -$ 4,550,244$ 4,550,244$
Starting Year Balance:-$ -$ 28,814,312$ (0)$ (0)$
Ending Year Fund Balance:-$ -$ 28,814,312$ (0)$ (0)$ (0)$
(S2) Total Construction Estimates, Land Sales Going Towards Construction, 5% Bond, 30 Year Bond
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iii. Scenario 3, Base Model, Land Sales and Lower Interest Rate
The above model assumes $9.5 million in land sales by 2025, but also assumes that the bond
issuance has an interest rate of 4 percent versus 5 percent.
b. Funding Principles
The following are general funding principles the City could use in the PW Phase 2 Model:
1. Revenue from land sales from existing public works facilities (George Long, Minkler, and
Longacres) would go to support the build out of Public Works Phase 2.
2. The City could consider allocated other property transactions into Public Works Phase 2.
3. The utilities will pay their fair share for being on the City owned property.
4. The City will work to identify and engage partners who can help pay for the capital costs
the buildout. However, the partners fund must be more than just contributing to the
Expenditures 2023 2024 2025 2026 2027 2028
Design and Pre-Construction: 1,725,000$ 2,875,000$ 1,374,412$ -$ -$ -$
Other Soft Costs:-$ 23,377,588$ -$ -$ -$
Total Soft Costs: 1,725,000$ 2,875,000$ 24,752,000$ -$ -$ -$
2023 Construction Cost Estimates:-$ -$ 23,417,500$ 23,417,500$ -$ -$
January 2026 Escalation:-$ -$ 3,839,000$ 3,839,000$ -$ -$
Total Hard Costs:-$ -$ 27,256,500$ 27,256,500$ -$ -$
Total Construction Costs: 1,725,000$ 2,875,000$ 52,008,500$ 27,256,500$ -$ -$
Debt Payments:-$ -$ -$ 1,557,812$ 4,045,123$ 4,045,123$
Total: 1,725,000$ 2,875,000$ 52,008,500$ 28,814,312$ 4,045,123$ 4,045,123$
Source of Funds 2023 2024 2025 2026 2027 2028
General Fund
Lease from UPS: 237,021$ 824,575$ 280,646$ -$ -$ -$
Potential Additional REET 1 Funds: 50,000$ 50,000$ 406,560$ -$ -$ -$
Land Sales: 300,000$ 500,000$ 9,500,000$ -$ -$ -$
Exceed Funds from 302 Fund: 275,479$ 62,925$ -$ -$ -$
Other General Fund Contribution:-$ -$ -$ -$ -$ -$
Proceeds from Bonds:-$ -$ 69,948,400$ -$ -$ -$
General Fund Debt Service:-$ -$ 0 -$ 1,545,123$ 1,470,123$
Funding from Partners:-$ -$ -$ -$ -$ -$
Grants:-$ -$ -$ -$ -$ -$
Park Impact Fee:-$ -$ -$ -$ -$ -$
Subtotal: 862,500$ 1,437,500$ 80,135,606$ -$ 1,545,123$ 1,470,123$
Utilities
Water: 293,250$ 488,750$ 233,650$ -$ 850,000$ 875,500$
Sewer: 163,875$ 273,125$ 130,569$ -$ 475,000$ 489,250$
Surface Water: 405,375$ 675,625$ 322,987$ -$ 1,175,000$ 1,210,250$
Grants:
Subtotal: 862,500$ 1,437,500$ 687,206$ -$ 2,500,000$ 2,575,000$
Total All Sources: 1,725,000$ 2,875,000$ 80,822,812$ -$ 4,045,123$ 4,045,123$
Starting Year Balance:-$ -$ 28,814,312$ (0)$ (0)$
Ending Year Fund Balance:-$ -$ 28,814,312$ (0)$ (0)$ (0)$
(S3) Total Construction Estimates, Land Sales Going Towards Construction, 4% Bond, 30 Year Bond
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marginal cost increases of the partner. Essentially, the City must receive funds above
the cost incurred by the partner being on the property.
5. One-time funding sources for one-time expenses.
6. Others?
c. Other Capital Needs
Funds that are being allocated from land sales and REET 1 are potential funds that could be
used for other one-time capital expenses, such as replacing the HVAC system at the Tukwila
Community Center. The City has been successful in getting a state grant for the work and there
is a federal appropriation also pending.
d. Other Potential Sources of Revenue
Many jurisdictions have been unable to spend their American Rescue Plan Act (ARPA) funds.
There is a slight possibility that the City maybe able to secure additional ARPA funds to assist
with the design work. If the City is successful, these funds could be used to meet the non-
utilities funding for the design phase funds.
III. Funding the Design and Pre-Construction Work
The City’s project manager, SOJ, have secured quotes from professional firms to complete the
design and pre-construction work for Public Works Phase 2. The total cost for all firms and work
is $ $5,195,141, with an additional owner’s contingency of $779,271, for a total of $5,974,412.
This work would be spread out in 2023, 2024, and 2025. Like with the Test to Fit work, the cost
for the design and pre-construction was envisioned to be split 50/50 between the general fund
and utilities.
An additional $1,644,964 in non-utility funds would have to be used to support the design and
pre-construction phase. Staff believes that using a combination of funds from excess REET 1,
302 (Urban Renewal), land sales revenue, and the ending fund balance of 306 can be used for
these funds.
Year 2023 2024 2025 Total
Total Spend Per Year: 1,725,000$ 2,875,000$ 1,374,412$ 5,974,412$
Source of Funds
General Fund
Lease Revenue from UPS: 237,021$ 824,575$ 280,646$ 1,342,242$
Other Funds: 625,479$ 612,925$ 406,560$ 1,644,964$
Proceed from Land Sales:-$
Subtotal: 862,500$ 1,437,500$ 687,206$ 2,987,206$
Utilities
Water: 293,250$ 488,750$ 233,650$ 1,015,650$
Sewer: 163,875$ 273,125$ 130,569$ 567,569$
Surface Water: 405,375$ 675,625$ 322,987$ 1,403,987$
Subtotal: 862,500$ 1,437,500$ 687,206$ 2,987,206$
Total All Sources: 1,725,000$ 2,875,000$ 1,374,412$ 5,974,412$
Design and Pre-Construction Projected Burn
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a. Debt
i. Financing
Like most capital projects, the Public Works Operation’s Campus can be paid with a variety of
revenue options, grants, and capital appropriations from other governmental entities. The City
will have to issue a bond to pay for the overall construction costs. One way of looking at the
construction costs is to look at how the City would pay the annual debt service for the project.
ii. Bond Capacity
Year LTGO Debt UTGO Debt
Total Long-
Term Debt Assessed Value %Change AV
1.5%2.5%
Remaining
Non-Voted
Debt
Capacity
Remaining
Total Debt
Capacity
2017 35,014,277 32,990,000 68,004,277 6,184,943,263 7.31% 92,774,149 154,623,582 57,759,872 86,619,305
2018 48,358,749 31,875,000 80,233,749 6,685,919,176 8.10% 100,288,788 167,147,979 51,930,039 86,914,230
2019 71,439,055 68,405,000 139,844,055 7,351,973,382 9.96% 110,279,601 183,799,335 38,840,546 43,955,280
2020 72,205,534 67,035,000 139,240,534 7,883,057,562 7.22% 118,245,863 197,076,439 46,040,329 57,835,905
2021 73,117,643 66,335,000 142,302,643 8,010,892,032 1.62% 120,163,380 200,272,301 44,195,737 57,969,658
2022 70,734,706 65,375,000 138,650,706 8,970,452,548 11.98% 134,556,788 224,261,314 61,281,082 85,610,608
2023 64,094,790 63,595,000 129,921,790 9,374,122,913 4.50% 140,611,844 234,353,073 74,285,054 104,431,283
2024 59,643,954 61,615,000 123,181,954 9,795,958,444 4.50% 146,939,377 244,898,961 85,372,423 121,717,007
2025 55,602,406 59,210,000 116,426,406 10,236,776,574 4.50% 153,551,649 255,919,414 96,335,243 139,493,008
2026 51,941,964 56,565,000 109,811,964 10,697,431,520 4.50% 160,461,473 267,435,788 107,214,509 157,623,824
2027 48,157,300 53,660,000 102,813,300 11,178,815,938 4.50% 167,682,239 279,470,398 118,528,939 176,657,098
2028 44,231,450 50,485,000 95,403,450 11,681,862,655 4.50% 175,227,940 292,046,566 130,309,490 196,643,116
2029 40,164,314 47,025,000 87,567,314 12,207,546,475 4.50% 183,113,197 305,188,662 142,570,883 217,621,348
2030 36,414,928 43,290,000 79,773,928 12,756,886,066 4.50% 191,353,291 318,922,152 154,869,363 239,148,224
2031 32,218,328 39,270,000 71,488,328 13,330,945,939 4.50% 199,964,189 333,273,648 167,745,861 261,785,320
2032 28,515,314 34,950,000 63,465,314 13,930,838,506 4.50% 208,962,578 348,270,963 180,447,264 284,805,649
2033 24,683,322 30,315,000 54,998,322 14,557,726,239 4.50% 218,365,894 363,943,156 193,682,572 308,944,834
2034 20,723,662 25,360,000 46,083,662 15,212,823,920 4.50% 228,192,359 380,320,598 207,468,697 334,236,936
2035 16,626,052 20,075,000 36,701,052 15,897,400,996 4.50% 238,461,015 397,435,025 221,834,963 360,733,973
2036 12,652,810 14,440,000 27,092,810 16,612,784,041 4.50% 249,191,761 415,319,601 236,538,951 388,226,791
2037 8,926,072 8,440,000 17,366,072 17,360,359,323 4.50% 260,405,390 434,008,983 251,479,318 416,642,911
2038 5,070,838 4,335,000 9,405,838 18,141,575,492 4.50% 272,123,632 453,539,387 267,052,794 444,133,549
2039 1,640,000 - 1,640,000 18,957,946,389 4.50% 284,369,196 473,948,660 282,729,196 472,308,660
2040 - - - 19,811,053,977 4.50% 297,165,810 495,276,349 297,165,810 495,276,349
2041 - - - 20,702,551,406 4.50% 310,538,271 517,563,785 310,538,271 517,563,785
2042 - - - 21,634,166,219 4.50% 324,512,493 540,854,155 324,512,493 540,854,155
2043 - - - 22,607,703,699 4.50% 339,115,555 565,192,592 339,115,555 565,192,592
Voted debt cannot exceed the
aggregate of: 2.5% for general
purposes, 2.5% for parks and open
spaces, & economic development,
and 2.5% for utility purposes
17
INFORMATIONAL MEMO
Page 12
iii. Annual Debt Service
30 Year Debt Issuance
Interest Rate 5.00%
Payments Per Year 1
Term (Years) 30
Total Bond Annual Debt
Service
Minimum General Fund
Obligation
80,000,000 $5,204,115 $2,602,057.40
75,000,000 $4,878,858 $2,439,428.82
70,000,000 $4,553,600 $2,276,800.23
65,000,000 $4,228,343 $2,114,171.64
60,000,000 $3,903,086 $1,951,543.05
Like most capital projects, the Public Works Phase 2 can be paid with a variety of revenue
options, grants, and capital appropriations from other governmental entities. The City will have
to issue a bond to pay for the overall construction costs. One way of looking at the construction
costs is to look at how the City would pay the annual debt service for the project. Page 51 of
the City’s 2023/2024 Adopted Budget outlines the City’s required debt service through 2028. As
shown on the page, the City assumed the general fund would support $1,951,543 in annual
debt service for the Public Works Shops, Phase 2. Since the general fund is assumed to
support 50 percent of the construction costs, with the utilities assuming the other half. This
would support a total bond of $60 million per year. In 2023 the total debt payments for all debt
for the City is approximately $5.01 million. Page 51 of the City’s 2023/2024 adopted budget is
below.
40 Year Debt Issuance
Interest Rate 5.00%
Payments Per Year 1
Term (Years) 40
Total Bond Annual Debt
Service
Minimum General Fund
Obligation
80,000,000 $4,662,253 $2,331,126.45
75,000,000 $4,370,862 $2,185,431.04
70,000,000 $4,079,471 $2,039,735.64
65,000,000 $3,788,080 $1,894,040.24
60,000,000 $3,496,690 $1,748,344.83
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INFORMATIONAL MEMO
Page 13
Based upon updated construction costs, for planning purposes the City is assuming
construction costs, including bond costs, of $79.44 million. The design and pre-construction
work will be paid with cash on hand and not included in the bond.
Total Maximum Potential Bond
Total (Hard and Soft) Cost: 77,890,588
Cost of Debt Issuance:1,557,812
Total Bond: 79,448,400
General Fund and Utility Fund Allocations, Adjusted
General Fund Allocation 39,724,200
Less Grants and One Time: -
Less Land Sales: -
Alternative Scopes: -
Total: 39,724,200
General Fund Debt Service 2,584,116
Utility Fund Allocation 39,724,200
Less Grants
Alternative Scopes:
Less One Time Monies
Total, Utilities: 39,724,200
Utilty Debt Service 2,584,116
19
INFORMATIONAL MEMO
Page 14
The total potential bond obligations would be split 50/50 between the general fund and utilities.
The terms are 30 years, with 5% percent interest rate. The obligations above assume no land
sales, no one time cost adjustments, and no grants/one time funding opportunities. It’s
essentially the max debt service model. However, the debt service obligations are lowered if the
City credits land sales and other one-time funds to the project.
The adjusted model (discussion purposes only) above assumes $2 million in grants/one-time
funds, $5 million in land sales, and reducing the scope by $1 million, lessening the general fund
total debt service obligation to just over $2 million per year. The use of one-time funds would
significantly reduce the annual debt service the general fund would have to service per year.
iv. Interest Rate Variable
General Fund and Utility Fund Allocations, Adjusted
General Fund Allocation 39,724,200
Less Grants and One Time: -
Less Land Sales: 10,000,000
Alternative Scopes: 500,000
Total: 29,224,200
General Fund Debt Service 1,901,076
Utility Fund Allocation 39,724,200
Less Grants
Alternative Scopes:
Less One Time Monies
Total, Utilities: 39,724,200
Utilty Debt Service 2,584,116
General Fund Debt Service
General Fund Bond Allocation: 39,750,000 34,750,000 29,750,000 24,750,000
Maximum Payment Required: $2,585,795 $2,260,537 $1,935,280 $1,610,023
Debt Service in 2023/2024 Budget: 1,951,543 1,951,543 1,951,543 1,951,543
Max. Additional Gen. Funds Needed: 634,251 308,994 (16,263) (341,520)
30 Year Payments, Based On Interest Rate
Total Bond 4.50% 5.00% 5.50% 6.50% 7.00%
80,000,000 $4,911,323 $5,204,115 $5,504,431 $6,126,195 $6,446,912
75,000,000 $4,604,366 $4,878,858 $5,160,404 $5,743,308 $6,043,980
70,000,000 $4,297,408 $4,297,408 $4,297,408 $4,297,408 $4,297,408
65,000,000 $3,990,450 $3,990,450 $3,990,450 $3,990,450 $3,990,450
60,000,000 $3,683,493 $3,683,493 $3,683,493 $3,683,493 $3,683,493
Interest Rate
40 Year Payments, Based On Interest Rate
Total Bond 4.50% 5.00% 5.50% 6.50% 7.00%
80,000,000 $4,347,452 $4,662,253 $4,985,627 $5,655,498 $6,000,731
75,000,000 $4,075,736 $4,370,862 $4,674,026 $5,302,029 $5,625,685
70,000,000 $3,804,020 $3,804,020 $3,804,020 $3,804,020 $3,804,020
65,000,000 $3,532,305 $3,532,305 $3,532,305 $3,532,305 $3,532,305
60,000,000 $3,260,589 $3,260,589 $3,260,589 $3,260,589 $3,260,589
Interest Rate
20
INFORMATIONAL MEMO
Page 15
iv. Hypothetical Utility Annual Rent Payments
Assuming a bond of $79,448,000 per year with fixed payments. Hypothetical total base rent is
$3,000,000 per year, with the utilities responsible for half of the rent cost. As is typical with all
commercial leases, the base rent increases on an agreed upon amount. This amount would be
set by an industry standard. The rent amount would be determined by obtaining a broker’s
opinion value.
Staff is working on the cost share allocation with the City’s utility funds (water, sewer, and
stormwater) to ensure that the utilities are paying their fair share for the improvements. This will
most likely include the utilities paying rent to the general fund indefinitely for the site. In future
years the rent would likely be higher than our debt service to reflect a change in market rent.
IV. Other
The following outlines specific questions that have been asked in the various City Council and
committee meetings.
a. 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 $300,000 per month.
b. Phasing of the Project
A question came up at the February 27 Finance and Governance Committee meeting regarding
a previously discussed phase 3 of the project. This comment seemed to be related to cost
management and reducing the scope of the current project.
2024 2025 2026 2027 2028
Projected General Fund Revenues: 74,042,407$ 66,813,952$ 68,258,314$ 69,971,661$ 71,550,732$
Adopted Projected Debt (includes $1.95 M for PW Phase 2): 4,206,345$ 5,643,933$ 5,735,890$ 5,739,099$ 5,704,835$
% of Debt Payments to General Fund Revenue: 5.68% 8.45% 8.40% 8.20% 7.97%
Max General Fund Additional Debt Needed:-$ 632,573$ 632,573$ 632,573$ 632,573$
Total Potential Debt: 4,206,345$ 6,276,506$ 6,368,463$ 6,371,672$ 6,337,408$
% Debt Payments to General Fund Revenue: 5.68% 9.39% 9.33% 9.11% 8.86%
Six Year Financial General Fund Debt Support
Hypothetical Market Rent for Property:5,000,000$
Utilities Rent (50% of estimated rent): 2,500,000$
Annual Cost Adjustment:5%
Year Total Debt Service Utility Rent General Fund Obligation
1 5,168,232$ 2,500,000$ 2,668,232$
2 5,168,232$ 2,625,000$ 2,543,232$
3 5,168,232$ 2,756,250$ 2,411,982$
4 5,168,232$ 2,894,063$ 2,274,170$
5 5,168,232$ 3,038,766$ 2,129,467$
6 5,168,232$ 3,190,704$ 1,977,529$
7 5,168,232$ 3,350,239$ 1,817,993$
8 5,168,232$ 3,517,751$ 1,650,481$
9 5,168,232$ 3,693,639$ 1,474,594$
10 5,168,232$ 3,878,321$ 1,289,912$
21
INFORMATIONAL MEMO
Page 16
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.
Phasing of Phase 2 will not reduce the project cost or save the City money. In fact, the project
team believes phasing would add more overall costs to the project:
1. Most of the significant cost items, such as the stormwater system and administration
building cannot be phased.
2. Construction costs will likely continue to increase. In fact, going back to 2009,
construction costs have always trended upwards, some years more steeply than others.
At best the rate of increase may not be as aggressive, but the cost will continue to move
upwards. Staff has discussed likely construction cost trends with developers who also
believe that costs will continue to rise.
3. The City may be able to take advantage of favorable bonding costs in the next few
years. If the work was spread out the City the City may have to issue different bonds and
the terms may not be as favorable on the second issuance.
4. There are inefficiencies for the contractors since they would have to mobilize and secure
temporary facilities for a phase project. These inefficiencies would be passed on to the
City has additional costs for the project.
5. The design costs would be increased since the City would have to prepare two
additional sets of contract documents.
22
INFORMATIONAL MEMO
Page 17
c. List of City Facilities (Due to space, this was moved as an attachment).
d. Monetization of Surplus City Properties (Due to space, this was moved as
an attachment).
Attachment “B” is an updated list of properties that the City could monetize. If the vote to the
RFA is successful, the City would not have to budget additional fire capital equipment into the
D-20 model. This frees up land sales and leases to support other projects, such as the Public
Works Operations Campus Phase 2. There is just under $18 million in potential land sales
available to the city over the next five years.
e. Intergenerational (Teen/Senior) Center Update
The City Council did not allocate any funding for the planning of the Intergenerational Center in
2023 or 2024. The CIP does show funds being allocated in 2025 and 2026 for additional
planning efforts.
f. Minkler Shops and Levee Issues
The Minkler Facility is classified as a critical facility because of its role in assisting with
emergency response and because it stores hazardous materials, that if flooded would be
problematic. Per Tukwila Municipal Code 16.52.120, all new critical facilities shall be located
outside of the limits of the 100-year flood event. If no feasible alternative exists, then the facility
shall be elevated 3 feet above the base flood elevation (100-year flood event) or elevated to the
500-year flood elevation, whichever is higher. The City’s Floodplain Ordinance is based on the
state’s model floodplain ordinance.
Additionally, the Minkler Shops are located immediately behind the decertified Tukwila 205
levee, which has been shown to not meet federally established criteria (44 CFR 65.10) to
provide reasonable assurance that protection from the base flood (aka 100-year flood)
exists. The City, along with the King County Flood Control District and the US Army Corps of
Engineers, are working on a long term, multi-phase process to address levee deficiencies.
Minkler Shops has also been identified by WRIA-9 as an ideal location along the Green River to
complete a salmon restoration project. A restoration project would likely be included in an
overall levee setback project in the area. King County Flood District has expressed an interest in
purchasing the Minkler Shops property.
g. Can spoils be located somewhere else doing design and construction
phase?
The City’s spoils storage are currently scattered at various city owned site. Longacres and
George Long will likely not be available to the City in the next few years as the City moves to
sale the properties
1. Hydro-Excavated Spoils (clean muddy wet dirt) stored while it dries under the Grady
Way Bridge accessed via Long Acres Property.
2. Dry Excavated Spoils (clean dry dirt) stored Long Acres Property.
3. Vactor Catch Basin Waste (grit, oil, sand) transported directly to King County Vactor
Waste Facility in Renton. We don’t have a site to handle this type of material (Decant
Facility). Not efficient use of time and limited to restricted delivery hours.
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INFORMATIONAL MEMO
Page 18
4. Street Sweeping Waste (leaves, litter, grit) stored at George Long before hauled to
Waste Management Rail Transfer site in South Seattle. Stockpile is transported once
large enough to send multiple dump trucks, multiple times on a scheduled delivery day.
5. Wood Chipping Waste (wood chips, ground leaves and vegetation) stored at George
Long before used in parks and ROW as landscape mulch.
h. Cost of Operations Campus to Date
To date, the City has spent approximately $36 million on the Public Works Operations Campus.
A significant amount of the funds used were to acquire the three parcels and to assist with
business relocation for two of the businesses on the site.
i. Impacts of Terminating the Project
Terminating the project would result in the City not fulfilling its commitment regarding investing
in new, safe buildings for the City’s public safety personnel. The City would have staff located at
the Minkler Shops, which are too small for the City’s operations.
Terminating the project would also result in general fund needing to pay back the utilities for
work done to date on the project. The City has been implementing a 50/50 split between the
general fund and utilities. General fund activities from George Long have moved to the Public
Works Operations Campus. However, the utilities are located at Minkler Shop. If the utilities do
not utilize the new campus the City cannot justify the 50/50 split.
NEXT STEP
Staff is requesting authorization to move forward with the design and pre-construction work.
Staff is not requesting authorization to move forward with construction or for the issuance of
debt for the construction of the project.
The following outlines the contracts that would need to be executed. The design and pre-
construction work will occur in 2023, 2024, and 2025. Construction could begin in May of 2025.
Staff would like to have the owner’s contingency floating. Meaning that the City would allocate to
a specific contract if and when needed. It’s possible that other contracts would be needed, and
the City could use the owner’s contingency for this work. Staff is requesting permission to add
funds to contracts or to secure additional contract, if needed, provided the total project allocation
does not exceed $5,974,412, with the need to get the contract modified by the City Council.
Firm Services Design Phase Costs Construction Phase Costs
Miller Hayashi Architect 3,928,715.00$ 1,487,110.00$
GeoEngineers Geotech 32,842.00$ 48,000.00$
NOVO HAZMAT 19,900.00$ Part of the 19,900
Wetherholt Building Envelope 12,950.00$ 56,850.00$
SOJ Project Management 750,734.00$ Not provided
Ogden Murphy Legal 50,000.00$ Not provided
GCCM Preconstruction 400,000.00$ Not provided
Subtotal:5,195,141.00$
15% contingency:779,271.15$
Total Design Phase Costs:5,974,412.15$ (Excludes: Permit Fees, Bond Costs)
Tukwila Maintenance & Engineering Building - Design Phase Budget DRAFT - 4/10/2023
24
INFORMATIONAL MEMO
Page 19
Similar to the public safety plan, staff would also like to implement a monthly report to the City
Council regarding the budget and expenditures associated with the design and pre-construction
phase. This would be a report include in a packet to the City Council. Additionally, the project
team will provide formal milestone check ins to the City Council in October, 2023; June, 2024,
and March, 2025. Each one of these milestones would serve as potential offramp for the City
Council to terminate the project.
FINANCIAL IMPACT
RECOMMENDATION
Staff is requesting Council authorization for the Mayor to sign all necessary contracts for design
and pre-construction work not to exceed $5,974,412 including contingencies. This would
include specific updates and opportunities for off-ramps during this process.
Staff would like to present this final report to the Committee of the Whole on May 22, 2023. The
draft contracts for execution would be included in the packet for that meeting.
Final City Council action could occur on June 5, 2023.
ATTACHMENTS
SHKS Architects Phasing Outline
Attachment “A,” Current Conditions and Overview of Key City Facilities
Attachment “B,” Surplus Property Sale Opportunities
Attachment “C” Debt Service
Attachment “D” Salmon Habitat Project, Minkler Shops, WRIA-9
25
26
2
7
2
8
Attachment “A”, Current Conditions and Overview of Key City Facilities
DRAFT, Updated May 1, 2023
Campus Building
Name
Year
Built
Building
Sq. ft.
Land
Sq. ft.
Primary Use Secondary/Backup
Use
Seismic Risk Flood Risk Tenant
Improvement
(Last Ten
Years)
Can be
surplus?
City Hall City Hall 1979 25,159 117,774 Administration
and City Council
N/A Some risks
were
identified in
the 2008
study, but
generally the
building was
satisfactory.
Low $595,806 N/A
6300 Building 1980 33,230 67,417 Administration
(DCD, PW, TIS,
City Council
meetings, and
Administrative
Services.)
Sound Cities
Association (tenant)
2008 study
identified
significant
issue with
building in the
event of an
earthquake,
including a
risk to
inhabitants.
Low $526,831 Possibly, if
City Hall
campus
operations
were
consolidated
into other
city facilities.
Major
Parks
Facilities
Tukwila
Community
Center
557,568 35,260 Parks and
Recreation
offices; teen and
senior activities;
Emergency shelter. Was not
designed as
an essential
facility,
Low $859,925 N/A
2
9
Attachment “A”, Current Conditions and Overview of Key City Facilities
and meeting
space.
significant
seismic issues.
Foster Golf
Club House
2004 14,656 N/A Club house and
restaurant for
Foster Golf Links
N/A Was built to
current
standards in
2004.
Low Still
researching.
N/A
Parks
Maintenance
Facility
2,900 N/A Parks
maintenance
shops and
offices.
N/A Generally
acceptable.
Medium Still
researching.
N/A
Public
Safety
Buildings
Justice
Center
2021 123,859 Police, Court,
and Emergency
Operation’s
Center
Community meeting
space.
Built to meet
current
seismic
standards.
Low $8,755 N/A
Fleet and
Facilities
2022 23,397 127,125 Public Works
Operations,
Fleet and
Facilities
N/A Building was
retrofitted to
be
operational
following a
seismic event.
Low N/A N/A
Minkler
Shops
1972-
1975
7,480 484,823 Public Works
Streets and
Utilities.
N/A 2008 report
identified
seismic
deficiencies
that would
render it
suspectable to
unacceptable
levels of
damage. Soil
liquefaction
High $45,537 Yes, was part
of the D-20
financing
model.
3
0
Attachment “A”, Current Conditions and Overview of Key City Facilities
also a
concern.
New Fire
Station 51
2021 11,240 246,878 Fire Station Community space. Built to
current
seismic
standards.
Low New
Construction
N/A
New Fire
Station 52
2021 14,650 108,904 Fire Station Community space,
backup emergency
operation’s center.
Built to
current
seismic
standards.
Low New
Construction
N/A
Fire Station
53
1995 7,392 38,860 Fire Station N/A Generally
acceptable.
Site damage
from a seismic
event could
hinder access.
Low $116,332
Fire Station
54
1961 5,398 111,064 Fire Station N/A Does not
meet
immediate
occupancy
standards
following a
seismic event.
Low $35,892 Will be
leased to
RFA. The
deed is
vested with
old Fire
District. Staff
is working to
address this
issue.
Other
Buildings
Old Fire
Station 51
1973 16,115 81,000 Currently being
used for police
vehicle evidence
storage.
None. 2008 study
recommended
replacing the
entire
structure.
Building is not
Medium,
protected
by levee.
$124,815 Yes, was part
of the D-20
financing
model.
3
1
Attachment “A”, Current Conditions and Overview of Key City Facilities
currently
being used for
occupancy by
City staff.
Old Fire
Station 52
3,330 1971 50,530 Vacant None N/A Low N/A No, deed
restrictions
limits the
City’s ability
to sell or
lease.
Old Fire
Station 53
(Allentown)
1930 4,608 21,042 Storage None N/A Low N/A Yes, was part
of the D-20
financing
model.
George Long 1965 18,168 166,439 Vacant, some
storage
None N/A, not
being used for
occupancy.
Medium $60,447 Yes, was part
of the D-20
financing
model.
3
2
Attachment “B”, Surplus Property Sale Opportunities
Updated, March 15, 2023
Updated, March 21, 2023
Council
Direction
Property Name Status Estimated
Value
Contract or
Final Sales
Price
Notes Budget Allocation
Property
Sold or
Under
Contract
HealthPoint Under contract with
HealthPoint
N/A, under
contract.
$3,850,000 HealthPoint has
already paid the
City $2,500,000.
The final payment
of $1,350,000 is
due by June 30,
2023.
In Fund 302 –
Urban Renewal:
$1.85 million to pay
off line of credit for
Urban Renewal and
TIB redevelopment.
$1 million for ERP
system,
$1 million
unallocated
Travelers Choice Sold, closed October
26, 2021
N/A, sold. $665,000 Part of mitigation
measures for
impacts with the
Justice Center
siting.
$400,000 was
budgeted to urban
renewal/TIB
redevelopment and
$265,000 to the
Public Safety Plan
(Fund 305)
Council
Authorized
Purchase
and Sale
Agreement
George Long In progress. $3,225,000 N/A Council authorized
the Mayor to enter
into purchase and
sale agreement with
King County. Still
working to finalize
Council
Previously
Briefed on
Likely
Surplus
Old Allentown
Fire Station
Not yet started. $200,000 N/A
3
3
Attachment “B”, Surplus Property Sale Opportunities
Updated, March 15, 2023
Longacres
Parcel
Begun preliminary
discussions about
bringing property to
market.
$2,000,000 N/A Previously
allocated to Public
Safety Plan; should
annexation to the
PSRFA occur these
funds would not be
needed for the
Public Safety Plan.
Not budgeted since
Council has not
given direction.
Old Fire Station
51
On hold. $2,300,00 N/A Police is currently
using the building
for vehicle evidence
storage.
Previously
allocated to Public
Safety Plan; should
annexation to the
PSRFA occur these
funds would not be
needed for the
Public Safety Plan.
Not budgeted since
Council has not
given direction.
Newporter Not yet started. $1,000,000 N/A
Minkler Shops Have had preliminary
discussions with King
County Flood District
$4,200,000 N/A Cannot be sold until
decision is made
regarding Public
Works Phase 2.
Additional
Properties,
No Council
Direction Yet
Old Fire Station
52
N/A N/A N/A Deed restriction on
property limits the
City’s option with
the property;
required to stay in
community use.
Building will likely
need to be
demolished and the
City will look at city
other opportunities
N/A
3
4
Attachment “B”, Surplus Property Sale Opportunities
Updated, March 15, 2023
with the property to
expand Hazelnut
park.
6300 Building Not yet started. $4,000,000 N/A Council has not
previously been
briefed on possible
surplus of 6300
building. Until staff
can be consolidated
into other buildings,
the City cannot
surplus. Staff has
been looking for
tenants to lease
vacant office space.
Funds have not
been allocated,
decision would
need to be made
regarding
consolidation of city
staff into City Hall
or other City facility.
Star Nursery Site On hold $880,000 N/A This property was
purchased for the
relocation of Fire
Station 54, but
construction of the
station was
deferred. The site
was also identified
as a possible site
for a future
teen/senior center.
Funds have not
been allocated.
3
5
3
6
Debt Service 2023-2028. This chart displays the general fund contribution to debt service for existing
debt, planned debt and proposed debt over the 6-year projection period. The totals in the chart represent
debt service payments; the totals do not take into consideration other revenue sources that offset the
general fund obligation.
TOTAL
2023 2024 2025 2026 2027 2028 2023-2028
LTGO 2015 392,475 389,375 391,125 387,575 391,050 392,050 2,343,650
Interurban 227,636 225,838 226,853 224,794 226,809 227,389
164,840 163,538 164,273 162,782 164,241 164,661
LTGO 2017 558,400 557,750 556,800 555,550 554,000 557,150 3,339,650
LTGO 2018 1,532,700 1,534,450 1,534,200 1,531,950 1,532,700 1,531,200 9,197,200
(766,350) (767,225) (767,100) (765,975) (766,350) (765,600) (4,598,600)
LTGO 2019 1,691,050 1,689,550 1,690,800 1,689,550 1,690,800 1,689,300 10,141,050
(372,031) (371,701) (371,976) (371,701) (371,976) (371,646) (2,231,031)
SCORE 2019 376,876 376,914 377,126 376,861 377,054 376,693 2,261,524
Refunding (376,876) (376,914) (377,126) (376,861) (377,054) (376,693) (2,261,524)
LTGO 2020R 513,029 516,579 - - - - 1,029,608
Refunding Southcenter Pkwy Extension 376,307 378,911 - - - -
Emergency Management 136,722 137,668 - - - -
LTGO 2021A 314,231 314,241 314,172 314,226 314,198 314,188 1,885,256
(157,116) (157,121) (157,086) (157,113) (157,099) (157,094) (942,628)
LTGO 2021B 257,741 257,475 258,381 257,321 257,146 256,826 1,544,890
LTGO 2021C 542,569 - - - - - 542,569
Existing debt 5,019,728$ 4,479,953$ 3,449,316$ 3,441,383$ 3,444,469$ 3,446,374$ 22,251,614$
PROPOSED DEBT:
LTGO 2020 PW Shops-General Fund
Portion
30,000,000 - - 1,951,543 1,951,543 1,951,543 1,951,543 7,806,172
-$ -$ 1,951,543$ 1,951,543$ 1,951,543$ 1,951,543$ 7,806,172$
TOTAL Estimate / Projections 5,019,728$ 4,479,953$ 5,400,859$ 5,392,926$ 5,396,012$ 5,397,917$ 30,057,786$
Interurban/Boeing Access Rd Brdg
Boeing Access Road Bridge
PW Shops
50% paid by utility funds
42nd and 53rd Sidewalks
PSP (Justice Center, Fire) & PW Shops
22% paid by utility funds
South County Correctional Entity, SCORE
Jail facility
Estimated contribution by SCORE
Southcenter Parkway Extension,
emergency management
PW Shops
50% paid by utility funds
Urban Renewal
Arterial Streets
Use of Debt Proceeds
BUDGET PROJECTIONS
EXISTING DEBT:
51
2023 - 2024 Biennial Budget City of Tukwila, Washington
51
38
RM
14
LG-35
G
reen River
I
n
t
e
r
u
r
b
a
n
T
r
a
i
l
-
T
u
k
w
i
l
a
G r e e n R i v e r T r a i l - T u k w i l a
InterurbanTrail Site - Tukwila
InterurbanTrail Site - Tukwila
Minkler
Blvd
An
d
o
v
e
r
P
a
r
k
E
181TUKWILA
RENTON
K ING C OUNT Y
Seattle
WRIA 9
Incorporated Area
N
Vashon/
Maury
Islands
Miles
0 5 10
LOCATION MAP
Seattle
PROJECT AREA MAP
Public
Lands
N0 200 400 ft.Park Incorp. Area
Boundary
Floodplain
Restoration
Riparian
Acquisition
$
Planning/
Design
Side channel
Scoping/
Reconnaissance
Primary strategy
Protect, restore and enhance floodplain connectivity.
Benefits:
• Flood risk reduction
• Increased habitat connectivity
• Increased rearing habitat
Contribution to goals metrics:
• LG - O-channel habitat
PROJECT DESCRIPTION:
Relocate the City of Tukwila's stormwater pond;
clean and connect the existing pond to the river,
setback the levee to create up to 7 acres of o
channel habitat.
Tier 1 Project: LG-35
P-17 Pond Connection Reconnection
PROJECT FACTS
Subwatershed:
Lower Green (LG)
River mile:
RM 13.7- 13.9/
left bank
Banksidejurisdiction:
City of Tukwila
Project sponsor:
City of Tukwila
Budget:
$37,000,000
PROJECT TYPE:
Project Area Map: Ortho2019KCNAT aerial photo Site photo: Google Earth
KCIT-DCE file: 2011_10202L LPRE GIS file Q:\20009\WRIA9_ProjectMaps.mxd KLINKAT
KEY HABITAT:
P-17Pond
PAGE
128 Green-Duwamish and Central Puget Sound Watershed Salmon Habitat 2021 Update
39