HomeMy WebLinkAboutReg 2025-06-02 Item 5F - Interlocal Agreement - Amendment #1 for Ongoing Surface Water Management Fee Collection with King CountyCOUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's review
Council review
06/02/25
JR
ITEM INFORMATION
ITEM No.
5.F.
STAFF SPONSOR: GRIFFIN LERNER
ORIGINAL AGENDA DATE: 06/02/25
AGENDA ITEM TITLE Interlocal Agreement - Amendment #1 for Surface Water Billing Services
with King County
CATEGORY ❑ Discussion
Mtg Date
0
Motion
Date 6/2/25
❑ Resolution
Mtg Date
❑ Ordinance
Mtg Date
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
Meg
SPONSOR Council ❑Mayor ❑HR ❑DCD ❑Finance ❑Fire ❑TS ❑Pe.,R ❑Police 11PW ❑Court
SPONSOR'S
SUMMARY
After entering an ILA, King County began including surface water fees on property tax
statements issued to property owners. In preparation for the 2025-2026 biennium, the
City partnered with FCS Group to complete a comprehensive utility rate study and transmit
updated parcel -level ERU data to King County. This amendment facilitates this transition.
Council is being asked to accept an amendment to our Interlocal Agreement (ILA).
Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Comm.
❑ LTAC ❑ Arts Comm. ❑ Parks Comm.
DATE: 05/28/25 COMMITTEE CHAIR: JOVITA
❑ Planning/Economic
Dev.
REVIEWED BY
❑ Planning Comm.
MCCONNELL
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITTEE
Public Works Department
Unanimous Approval; Forward to the Regular Consent Agenda
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$70,000 $0.00 $0.00
Fund Source: SURFACE WATER
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
06/02/25
MTG. DATE
ATTACHMENTS
06/02/25
Staff Informational Memorandum dated 5/23/25
Draft Amendment
Minutes from the 5/28/25 Transportation and Infrastructure Services Committee Meeting
(to be provided separately)
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City of Tukwila
Thomas McLeod, Mayor
Public Works ❑eportment - Pete Moyer, Interim Director
INFORMATIONAL MEMORANDUM
TO: Transportation and Infrastructure Services Committee
FROM: Pete Mayer, Deputy City Administrator/ Interim Public Works Director
BY: Griffin Lerner, Public Works Analyst
CC: Mayor McLeod
DATE: May 23, 2025
SUBJECT: Amendment No.1 to Interlocal Agreement (ILA) with King County for Surface Water
Billing Services
ISSUE
Approve Amendment No.1 to the existing ILA (City Contract #18-236) between the City of Tukwila and
King County for the provision of surface water management billing and collection services. This
amendment updates billing practices to reflect the upcoming 2026-year change in the surface water
rate structure.
BACKGROUND
In 2018, the City entered into an ILA with King County, through which the County began including
surface water fees on property tax statements issued to property owners. Implemented in 2019, this
billing approach streamlined the billing process, reduced the administrative burden on City staff,
improved collections, and provided a more convenient payment method for residents.
Since implementation, the City has continued to maintain parcel -level fee data, while King County
manages billing, collections, and customer service related to the Surface Water Management fee. The
original agreement was set to expire in 2028.
DISCUSSION
In preparation for the 2025-2026 biennium, the City partnered with FCS Group to complete a
comprehensive utility rate study. As a result of this work, the City Council adopted a new Equivalent
Residential Unit (ERU)-based fee structure effective January 1, 2026. To implement this revised
structure, the City must transmit updated parcel -level ERU data to King County for billing beginning
with the 2026 tax year. This amendment facilitates this transition by enabling updates to King County's
billing system to accommodate ERU-based charges.
FISCAL IMPACT
The per -account fee of this agreement is estimated to be roughly $2.00 per parcel in 2026. There is
also a one-time database set-up charge of up to $70,000. This will be paid for by the Surface Water
Enterprise Fund.
RECOMMENDATION
Council is being asked to accept an amendment to our Interlocal Agreement (ILA) and consider this
item on the Consent Agenda at the June 2, 2025 Regular Council Meeting.
Attachments: Draft Amendment
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AMENDMENT #1
TO
INTERAGENCY AGREEMENT
BETWEEN KING COUNTY AND THE CITY OF TUKWILA
FOR SURFACE WATER MANAGEMENT FEE COLLECTION AND REMITTANCE RELATED SERVICES
The purpose of this Agreement is to set forth the services the Parties agree the County will
provide to the City: 1) management of the City's SWM Service charge ratepayers database; 2)
provision of customer services related the City's SWM service charge; 3) billing of the City's
SWM service charge to ratepayers through the King County Property Tax Statement and 4)
collection of SWM service charges and transmittal of receipts to the City.
This Amendment ("Amendment #1") to the above -named Agreement is to 1) implement the
City's 2025 adopted SWM service rate charge structure; 2) update the description of services
and Costs and Billing and 3) revise the 2026 cost estimate for SWM service billing and revenue
collection services.
The Agreement is amended as follows (deleted text is shown in strikethrough and added text is
underlined):
III. Description of Services
F. King County will also include any delinquent SWM service charges on the annual
King County Property Tax Statement and attempt to collect any delinquent SWM
Service charges for 40 3 years before referring any uncollectable charges back to the
City for disposition.
V. Costs and Billing
A. Tukwila will -pay an annual per -account fee for SWM service charge database
management and customer service. King County may adjust the annual per -account
fee annually (typically between $1.50 2.00 to $4 80 2.40), based on staff and
overhead cost changes authorized in the adopted King County bi-annual budget. The
per account fee will be billed two times a year.
B. Tukwila will pay a one-time fee estimated to be between $17,113 50,000 to
$105,62/1 70,000, to convert the King County SWM service charge customer
database for Tukwila accounts, implementing the 2026 City's SWM fee rate
structure.
C. King County will send an Invoice to the City for the annual per -account billing fee
outlined above in two installments annually (approximately May and October). The
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one-time conversion fee will be billed in two installments in 2-0-1-9 2025. The City will
pay invoices within 45 days of receipt.
VI. Effectiveness, Duration, Termination and Amendment
A. This Agreement is effective upon signature by both Parties and will remain in effect
until December 31, 2028 December 31, 2030.
Tukwila SWM Service Charge Rate Structure
Costs for Billing and Revenue Collection Services Provided by King County
2019 Cost Estimate for SWM Billing and Revenue Collection Services
Annual SWM Service Billing (Based on 5,119 number of accounts and
estimated 2019 per account fee of $1.75*)
$8,958.25
One time fee not to exceed 105,624 to customize King County database
for Tukwila accounts (estimated to be between $47,413 to $105,624)
$105,624.00
Annual Revenue Collection (based on 1% of estimated annual revenue)
$52,952.00
TOTAL
$167,534.25
calculated for 2019. The estimated range is $1.50 to $1.80).
2026 Cost Estimate for SWM Billing and Revenue Collection Services
Annual SWM Service Billing (Based on 5,095 number of accounts and
$9,935.25
estimated 2026 per -account fee of $1.97*)
One-time fee not to exceed $70,000 to customize King County database
$70,000
for Tukwila accounts (estimated to be between $50,000 to $70,000)
Annual Revenue Collection (based on 1% of estimated annual revenue)
$65,877.81
TOTAL
$145,813.06
*as of the date of the execution of the attached Amendment #1, the actual fee has yet to be
calculated for 2026. The estimated range is $2.00 to $2.40).
All other terms and conditions of the original Agreement, as amended, remain if effect.
The parties have executed this Amendment #1 by having their representatives sign below.
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IN WITNESS WHEREOF, the Parties hereto have executed this Amendment #1 on
the day of , 20
Approved as to Form King County
By: By:
Title: Title: Department Director
Department of Natural Resources and Parks
Approved as to Form
By: By:
Title:
Title: Division Director
Finance and Business Operations Division of
the Department of Executive Services
Approved as to Form City of Tukwila
By: By:
Title: Title:
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