Loading...
HomeMy WebLinkAboutCOW 2012-11-13 COMPLETE AGENDA PACKETTukwila City Council Agenda v COMMITTEE OF THE WHOLE Jim Haggerton, Mayor Counci /members: Joe Duffie Dennis Robertson David Cline, City Administrator Allan Ekberg Kathy Hougardy V Sea l, Cou n c il Pr D e'Sea n Q K ate Kr EXECUTIVE SESSION 6:00 PM 7:00 PM 4+ Potential Litigation Pursuant to RCW 42.30.110(1)(i) (60 minutes) Tuesday, November 13, 2012, 7:00 PM Tukwila City Hall Council Chambers 1. CALL TO ORDER PLEDGE OF ALLEGIANCE 2. SPECIAL Swearing in of Dean Kolstad, Lateral Police Officer (Badge #207). PRESENTATION Mike 14111a, Po /ice Chief. 3. CITIZEN COMMENT At this time, you are invited to comment on items not included on this agenda (please limit your comments to five minutes per citizen). To comment on an item listed on this agenda, please save your comments until the issue is presented for discussion. 4. PUBLIC HEARING An ordinance increasing the regular property tax levy one percent from Pg.1 the previous year commencing January 1, 2013, on all property, both real and personal, in compliance with RCW 84.55.120; providing for severability and establishing an effective date. 5. SPECIAL a. Tax levy legislation; Pg.1 ISSUES (1) An ordinance increasing the regular property tax levy one percent Pg.5 from the previous year commencing January 1, 2013. (2) An ordinance levying the general taxes for the fiscal year Pg.7 commencing January 1, 2013. b. An update on the self- insured health care plan funding. Pg.11 c. A supplemental agreement for additional design work for the Pg.75 Duwamish Gardens project. d. A supplemental agreement for additional work on the Water and Pg.105 Sewer Comprehensive Plans. e. A resolution regarding water, sewer and surface water rates. Pg.111 f. Purchase of 190 Leotek LED luminaires for the 2012 annual Traffic Pg.143 Signal Program. g. Acceptance of a grant for the East Marginal Way South Overlay Pg.155 Repair Project (South 81st Place to Norfolk Street). h. An Interlocal Agreement with the Tukwila Metropolitan Park District. Pg.169 i. A discussion on the 2013 -2014 Budget and 2013 -2018 Capital Pg.185 Improvement Program. Please bring your Preliminary Budget and CIP, Q (continued...) p COMMITTEE OF THE WHOLE MEETING Tuesday, November 13, 2012 Page 2 REPORTS a. Mayor b. City Council c. Staff d. City Attorney e. Intergovernmental 7. MISCELLANEOUS S. EXECUTIVE SESSION 9. ADJOURNMENT Tukwila City Hall is wheelchair accessible. Reasonable accommodations are available at public hearings with advance notice to the City Clerk's Office (206- 433 -1800 or TukwilaCityClerk @TukwilaWA.gov). This notice is available at www.tukwilawa.aov and in alternate formats with advance notice for those with disabilities. Tukwila Council meetings are audio taped. HOW TO TESTIFY If you would like to address the Council, please go to the podium and state your name and address clearly for the record. Please observe the basic riles of courtesy when speaking and limit your comments to five minutes. The Council appreciates hearing from citizens but may not be able to take immediate action on comments received until they are referred to a Committee or discussed under New Business. COUNCIL MEETINGS No Council meetings are scheduled on the 5th Monday of the month unless prior public notification is given. Regular Meetings The Mayor, elected by the people to a four -year term, presides at all Regular Council Meetings held on the 1st and 3rd Mondays of each month at 7:00 p.m. Official Council action in the form of formal motions, adopting of resolutions and passing of ordinances can only be taken at Regular Council meetings. Committee of the Whole Meetings Council members are elected for a four -year term. The Council President is elected by the Council members to preside at all Committee of the Whole meetings for a one -year term. Committee of the Whole meetings are held the 2nd and 4th Mondays at 7:00 p.m. Issues discussed are forwarded to the Regular Council meeting for official action. GENERAL INFORMATION At each Council meeting citizens are given the opportunity to address the Council on items that are not included on the agenda during CITIZENS COMMENTS. Please limit your comments to 5 minutes. Special Meetings may be called at any time with proper public notice. Procedures followed are the same as those used in Regular Council meetings. Executive Sessions may be called to inform the Council of pending legal action, financial, or personnel matters. PUBLIC HEARINGS Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land -use laws, annexations, rezone requests, public safety issues, etc. Section 2.04.150 of the Tukwila Municipal Code states the following guidelines for Public Hearings: The proponent shall speak first and is allowed 15 minutes for a presentation. 2. The opponent is then allowed 15 minutes to make a presentation. Each side is then allowed 5 minutes for rebuttal. 4. Citizens who wish to address the Council may speak for 5 minutes each. No one may speak a second time until everyone wishing to speak has spoken. 5. After each speaker has spoken, the Council may question the speaker. Each speaker can respond to the question, but may not engage in further debate at this time. 6. After the Public Hearing is closed and during the Council meeting, the Council may choose to discuss the issue among themselves, or defer the discussion to a future Council meeting, without further public testimony. Council action may only be taken during Regular or Special Meetings. COUNCIL AGENDA SYNOPSIS nitials Meetin Date Prepared b M r r review Co na"I review 11/13/12 PMC Resolution Mtg Date Ordinance Mtg Date 11/19/12 11/19/12 PMC Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P &R Police PW SPONSOR'S City Council is being asked to approve an ordinance levying property tax for 2012 and an SUMMARY ordinance increasing the regular property tax levy one percent from the previous year. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 11/06/12 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONSOR /ADMIN. Finance Department COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 ITEM INFORMATION ITEMNO. 4& 5.A. STAFF SPONSOR: PEGGY MCCARTHY ORIGINALAGENDADATE: 11/13/12 AGENDA ITEM TITLE An ordinance levying property taxes for 2013 and an ordinance increasing the regular property tax levy one percent from the previous year. CATEGORY Discussion Mt g Date 11/13/12 Motion Mig Date Resolution Mtg Date Ordinance Mtg Date 11/19/12 BidAward Mtg Date Public Hearing Mtg Date 11/13/12 Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P &R Police PW SPONSOR'S City Council is being asked to approve an ordinance levying property tax for 2012 and an SUMMARY ordinance increasing the regular property tax levy one percent from the previous year. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 11/06/12 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONSOR /ADMIN. Finance Department COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 MTG. DATE ATTACHMENTS 11/13/12 Informational Memorandum dated 11/01/12 Draft Ordinances (2) Preliminary Levy Limit Worksheet 11/19/12 p City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director DATE: 11/01/12 SUBJECT: 2013 Property Tax Levy ISSUE Approval of ordinances adopting general property tax levy and regular tax levy for 2013 by November 30, 2012. BACKGROUND A Public Hearing for adoption of the 2013 property tax levy is required by RCW 84.55.120. The Hearing is scheduled for November 13, 2012. The City was notified on October 23, 2012 that the assessed value for Tukwila for 2013 is projected to be $4,603,990,258. The allowable levy projected by King County and documented on the Preliminary Levy Limit Worksheet -2013 Tax Roll is $13,839,489, representing the maximum 1% increase allowed by law. DISCUSSION The assessed value and the allowable levy are subject to change until final levy rate determination. A levy amount of $13,900,000 will be used for the ordinance. If the final allowable levy is less than the ordinance amount, King County Department of Assessments will adjust the ordinance amount to the final allowable levy amount and no further action the Council will be required. If the final allowable levy is more than the ordinance amount, a revised ordinance will be presented to Council at the Regular Meeting on December 3, 2012 for approval. RECOMMENDATION The Council is being asked to approve the ordinance adopting the General Tax Levy and the ordinance adopting the Regular Tax Levy at the November 13, 2012 Committee of the Whole meeting and subsequent November 19, 2012 Regular Meeting. A public hearing has also been scheduled at the November 13, 2012 Committee of the Whole. IAa _T31 1 ',I4a&? Draft Ordinances Preliminary Levy Limit Worksheet -2013 Tax Roll 3 p 'F K; AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, LEVYING THE GENERAL TAXES FOR THE CITY OF TUKWILA IN KING COUNTY FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2013, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN SAID CITY, WHICH IS SUBJECT TO TAXATION FOR THE PURPOSE OF PAYING SUFFICIENT REVENUE TO CARRY ON THE SERVICES OF THE SEVERAL DEPARTMENTS OF SAID CITY FOR THE ENSUING YEAR, AS REQUIRED BY LAW; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Tukwila has considered the City's anticipated financial requirements for 2013 and the amounts necessary and available to be raised by ad valorem taxes on real, personal and utility property, and WHEREAS, the final assessed valuation calculation has been determined, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Regular Tax Levy. A. There shall be and hereby is levied on all real, personal and utility property in the City of Tukwila, in King County, whose estimated assessed valuation is $4,603,990,258, current taxes for the ensuing year commencing January 2013, in the amount and at the rates specified below: Amount Regular Tax Levy $13,900,000 B. The said taxes herein provided for are levied for the purpose of payment upon the general bonded indebtedness of the City of Tukwila, the General Fund, and for the maintenance of the departments of the municipal government of the City of Tukwila for the fiscal year beginning January 1, 2013. W: Word Processing \Ordinances \General Tax Levy 10 -26 -12 VC:bjs Page 1 of 2 5 Section 2. Collection. This ordinance shall be certified to the proper County officials, as provided by law, and taxes here levied shall be collected to pay to the Finance Director of the City of Tukwila at the time and in the manner provided by the laws of the State of Washington for the collection of taxes for non chartered code cities. Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect January 1, 2013. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTH ENTICATED: Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney W: Word Processing \Ordinances \General Tax Levy 10 -26 -12 VC: bjs Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2 rq u AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, INCREASING THE CITY OF TUKWILA REGULAR LEVY FROM THE PREVIOUS YEAR, COMMENCING JANUARY 1, 2013, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN COMPLIANCE WITH RCW 84.55.120; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila has properly given notice of a public hearing held on November 13, 2012, pursuant to RCW 84.55.120; and WHEREAS, after hearing and duly considering all relevant evidence and testimony presented, the City Council has determined that in order to discharge its expected expenses and obligations the City requires an increase in property tax revenue from the previous year, in addition to the increase resulting from the addition of new construction and improvements to property and any increase in the value of State assessed property; and WHEREAS, the City Council has determined it is in the City's best interest and necessary to meet its expenses and obligations for the property tax revenue to be increased for 2013, and the final assessed valuation calculation has been determined; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. An increase in the regular property tax levy, in addition to any amount resulting from the addition of new construction and improvements to property and any increase in the value of State assessed property, is hereby authorized for the 2013 levy in the amount of $16,271, which is a percentage increase of 1.0% from the previous year. This increase is exclusive of additional revenue resulting from new construction, improvements to property, any increase in the value of State assessed property, any annexations that have occurred and refunds made. W: Word Processing \Ordinances \Regular Tax Levy Increase 10 -26 -12 vc:bjs Page 1 of 2 7 Section 2. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect January 1, 2013. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \Regular Tax Levy Increase 10 -26 -12 VC:bjs Page 2 of 2 i LEVY LIMIT WORKSHEET 2013 Tax Roll TAXING DISTRICT: City of Tukwila The following determination of your regular levy limit for 2013 property taxes is provided by the King County Assessor pursuant to RCW 84.55.100. Annexed to Library District (Note 1) Estimated Library rate: 0.50000 Using Limit Factor Using Implicit For District Calculation of Limit Factor Levy Price Deflator 13,647,706 Levy basis for calculation: (2012 Limit Factor) (Note 2) 13,647,706 1.0100 x Limit Factor 1.0295 13,784,183 Levy 14,050,313 10,077,387 Local new construction 10,077,387 0 Increase in utility value (Note 3) 0 10,077,387 Total new construction 10,077,387 2.95408 x Last year's regular levy rate 2.95408 29,769 New construction levy 29,769 13,813,952 Total Limit Factor Levy 14,080,082 Annexation Levy 0 Omitted assessment levy (Note 4) 0 13,813,952 Total Limit Factor Levy new lid lifts 14,080,082 4,603,990,258 Regular levy assessed value less annexations 4,603,990,258 3.00043 Annexation rate (cannot exceed statutory maximum rate) 3.05823 0 x Annexation assessed value 0 0 Annexation Levy 0 1 13,839,489 ALLOWABLE LEVY (Note 6) 14,105,619 Lid lifts, Refunds and Total Regular levy assessed value (Note 8) 0 First year lid lifts 0 13,813,952 Limit Factor Levy 14,080,082 13,813,952 Total RCW 84.55 levy 14,080,082 25,537 Relevy for prior year refunds (Note 5) 25,537 13,839,489 Total RCW 84.55 levy refunds 14,105,619 Levv Correction: Year of Error +or 1 13,839,489 ALLOWABLE LEVY (Note 6) 14,105,619 Calculation of statutory levy Increase Information (Note 7) Regular levy assessed value (Note 8) 3.00598 Levy rate based on allowable levy 3.06378 13,767,912 Last year's ACTUAL regular levy 13,767,912 16,271 Dollar increase over last year other than N/C Annex 282,401 0.12% Percent increase over last year other than N/C Annex 2.05% Calculation of statutory levy Regular levy assessed value (Note 8) 4,603,990,258 x Maximum statutory rate 3.10000 Maximum statutory levy 14,272,370 +Omitted assessments levy 0 Maximum statutory levy 14,272,370 Limit factor needed for statutory levy NOT USABLE ALL YEARS SHOWN ON THIS FORM ARE THE YEARS IN WHICH THE TAX IS PAYABLE. Please read carefully the notes on the reverse side. 10/23/12 4:33 PM LevyLimitW S.doc irs COUNCIL AGENDA SYNOPSIS Meetin Date Prepared b Ma or's review C nczt review 11/13/12 SB ITEM INFORMATION ITEM NO. 5.B. 11 STAFF SPONSOR: STEPHANIE BROWN ORIGINAL AGENDA DATE: 11/13/12 AGENDA ITEM TITLE- Presentation on Self- Insured Healthcare Plan Funding Overview. CATEGORY Discussion Mtg Date Motion Mtg Date Resolution Mtg Date Ordinance Mtg Date ❑Bid Award Mtg Date Public Hearing Mtg Date ❑Other Mtg Date SPONSOR ®Counczl E] Ma HR DCD .Finance .Fire IT P &R Police PW SPONSOR'S At their budget work session on October 11, 2012, the City Council requested to receive an SUMMARY actuarial report on the City's Self- Insured Healthcare Plan. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION MTG. DATE ATTACHMENTS 11/13/12 Informational Memorandum dated 11/7/12 2013 Healthcare Budget Projections for Active Plan 2013 Healthcare Budget Projections Leoff 1 Retirees Presentation Materials Health Plan Funding Overview Minutes from Council Budget Workshop 10/11/12 11 12 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton City Council FROM: Stephanie Brown, Human Resources Director DATE: November 7, 2012 SUBJECT: Self- Insured Healthcare Plan Funding Overview ISSUE At the October 11, 2012 Budget Work Session, the City Council requested that staff provide an actuarial report on the City's Self- Insured Healthcare Plan. RECOMMENDATION This is information only, and no Council action is required. ATTACHMENTS 2013 Healthcare Budget Projections for Active Plan 2013 Healthcare Budget Projections for Leoff 1 Retirees Presentation on Health Plan Funding Overview Minutes from October 11, 2012 Council Budget Workshop 13 ie CITY OF TUKWILA 2013 Healthcare Budget Projections LEOFF 1 Retirees October 11, 2012 16519 107th Place NE Bothell, Washington 98011 t: (425) 939 -7444 f: (425) 939 -0089 www.HealthcareActuaries.com 15 TABLE OF CONTENTS Introduction 1 Composite Rate Development 2 Composite Rate Funding Projections 8 Incurred but Not Reported (IBNR) Claims Estimates 11 Projected Fund Expenses 13 Monthly Rates 15 INTRODUCTION Healthcare Actuaries prepared this report for the City of Tukwila. The purpose of this report is to provide 2013 healthcare funding rates based on the City's goal to maintain reserves equal to 2.5 times IBNR (1 x IBNR to fund the IBNR reserve, plus 1.5 x IBNR for contingencies) in the City's LEOFF 1 Medical Self - Insurance Fund (Fund 503). Information Regarding the Data The basis for this report is information provided by the City, the City's broker (R.L. Evans Company, Inc.), and the City's third -party administrator (Healthcare Management Administrators, or HMA). The information provided appears to be reasonable; however, we did not audit it nor verify it for accuracy. Report Contents Ft Scope This report includes the following information: • market trend rates for medical, pharmacy, and dental coverage; • analysis of plan- specific trend rates separately for medical, pharmacy, dental, and vision benefits; • projected composite rates, separately for medical, pharmacy, dental, and vision benefits; • proposed rates for medical /pharmacy, dental, and vision benefits by plan and tier; • development of annual budgets for the City's Medical Self - Insurance Fund for 2013 through 2015. -1 City of Tukwila 2013 Renewal Report 1 10/11/2012 COMPOSITE RATE DEVELOPMENT Introduction We developed funding rates for the medical /pharmacy, dental, and vision plans using the following general process: 1) Collected, analyzed, and reviewed historical claims experience. 2) Adjusted paid claims for historical plan design changes and for stop -loss recoveries. 3) Reviewed large claims to determine if adjustments are necessary due to an unusually high number of large claims, or for individual cases of an unusually high dollar amount. 4) Calculated and compared historical trend rates with market trend rates; selected trend assumptions. 5) Using adjusted historical claims and enrollment and assumed trend rates, calculated projected claims for the remainder of the 2012 plan year and the 2013 plan year. Historical Experience The development of projected funding rates depends on historical claims information, including the number of covered employees or members by month, paid claims by month and large claims information. Historical information is also useful in understanding the performance of the plans, and how one might expect them to perform in the near future. Healthcare Reform and Plan Design Changes After a review of historical experience, we documented historical and future plan design changes and developed adjustment factors. For 2013, there are no benefit adjustments. Large Claims Adjustment In addition to plan design changes, we performed a review of large claims to determine the frequency and magnitude of large claims. If one or more large claims exist that one would not expect to recur in future years, or if the number of claims is outside expected levels, removing a portion of the large claims would be appropriate. There were no large claims for retirees in 2011 or year -to -date 2012. We removed stop -loss recoveries received for the portion of large claims in excess of the specific stop -loss deductible, since the stop -loss carrier covers that portion of those claims. Trend Analysis We developed plan- specific trend rates using adjusted historical claims and enrollment using exponential regression techniques applied to a rolling twelve -month average of paid claims per employee per month (PEPM). We calculated trend rates for the most recent 12 and 24 months of rolling- twelve -month claims data for the medical, pharmacy, dental and vision claims. Given the small number of covered employees and members, one cannot rely entirely on plan- specific trend rates alone. There is too much variability in trend rates for the plan- specific trend data to be credible on its own. Therefore, we use a weighted average of the plan- specific trend rates and market trend rates to set the trend rates used in the projections. The results of the analysis follow, including a comparison to market trend rates and the applied trend rates used in the projections: City of Tukwila 2013 Renewal Report 2 10/11/2012 11 IIIIIIIIIII boon 111111111111111 11 Medical Pharmacy Dental Vision 24 months 12 months 24 months 12 months 24 months 12 months 24 months 12 months -25.1% -14.6% 91.0% 138.2% - 1.3% - 4.5% 6.6% -15.1% -14.6% 6.6 %2 5.5% 91.0% 6.5 %3 10.7% -1.3% 6.2 %4 5.5% 6.6% 3.9 %5 4.2% Exhibits A through D show the development of the trend rates based on 12 -month rolling averages. 1 2012 Segal Health Plan Cost Trend Survey or Arlen Group Trends for 2nd quarter 2012. 2 Segal Health Plan Cost Trend for Medicare Advantage FFS or PPOs, Projected 2012 w/o Rx. 3 Segal Health Plan Cost Trend for Retirees Age 65+ for Rx. 4 Arlen Group Trend for FFS /Indemnity Dental Plans. 5 Segal Health Plan Cost Trend for Reasonable and Customary (REtC) Vision Plans. City of Tukwila 2013 Renewal Report 3 10/11/2012 N 0 $900 $800 Exhibit A CITY OF TUKWILA Medical Trend: Rolling -12 -Month Exponential Trend (LEOFF 1 Retirees) Cost $400 PEPM -$100 A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J 2010 2011 2012 PEPM (lagged 2 months) City of Tukwila 2013 Renewal Report Rolling 12 -Month Average Exponential Trend ® -14.6% 4 10/11/2012 Cost PEPM $2,500 $2,000 $1,500 $1,000 $500 $0 Exhibit B CITY OF TUKWILA Rx Trend: Rolling -12 -Month Exponential Trend (LEOFF 1 Retirees) A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J 2010 2011 2012 PEPM (lagged 0 months) City of Tukwila 2013 Renewal Report Rolling 12 -Month Average Exponential Trend ® 91.0% 5 10/11/2012 Cost PEPM $250 $200 $150 $100 $50 $0 Exhibit C CITY OF TUKWILA Dental Trend: Rolling-1 2-Month Exponential Trend (All Participants) A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J 2010 2011 2012 PEPM (lagged 1 month) Rolling 12 -Month Average Exponential Trend ® -1.3% City of Tukwila 2013 Renewal Report 6 10/11/2012 $30 $25 $20 Cost PEPM $15 $10 $0 Exhibit D CITY OF TUKWILA Vision Trend: Rolling -12 -Month Exponential Trend (All Particpants) A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J 2010 2011 2012 PEPM (lagged 1 month) City of Tukwila 2013 Renewal Report Rolling 12 -Month Average Exponential Trend ® 6.6% 7 10/11/2012 COMPOSITE RATE FUNDING PROJECTIONS We developed projected funding rates based on the most recent thirty -six months of adjusted paid claims, net of any specific stop -loss recoveries. We developed projected funding rates on a "paid" rather than an "incurred" basis, since the City budgets the change in IBNR separately. Next, we divided paid claims by the number of covered employees, resulting in projected paid claims per employee per month (PEPM). Then we lagged the number of covered employees utilized by two months for medical, zero months for pharmacy, one month for dental, and one month for vision, to provide a better match between enrollment and paid claims (this approximates incurred claims). Finally, we adjusted projected paid claims PEPM for trend from the midpoint of the experience period to the midpoint of the renewal period. The result is projected paid claims PEPM. To this, we added administration costs and stop -loss premiums. We did not add an explicit margin for claims fluctuations because the amount of the reserve in the fund balance is sufficient to cover expected claim fluctuations. Exhibit E illustrates the funding projections for 2012. We based total projected costs for the year on actual results for January through July, and projected results for August through December. Exhibit F illustrates the funding projections for 2013. City of Tukwila 2013 Renewal Report 8 10/11/2012 Exhibit E CITY OF TUKWILA Projected Costs for the LEOFF 1 Retiree Plans for the Period January 1, 2012 - December 31, 2012 Projected Costs for 8/1/2012 through 12/31/2012 Net adjusted paid claims for the 36 months ending 7/31/2012 Covered retirees for the 36 months ending 5/31/2012, 7/31/2012, 6/30/2012, and 6/30/2012, respectively Claims cost per employee per month Impact of future plan design changes (if any) Trend @ 5.5 %, 10.7 %, 5.5 %, and 4.2% for 20.5 months Trended claims cost per employee per month with margin Administrative costs per employee per month Stop -loss premiums per employee per month Projected composite funding per employee per month, participating Current number of employees Number of months in rest of year Projected total costs for 8/1/2012 through 12/31/2012 Combined total costs for 8/1/2012 through 12/31/2012 Actual Costs Through 7/31/2012 Net paid claims for 2012 year -to -date through July, by plan Actual administration costs Actual stop -loss premiums Total actual costs Projected total costs for the current plan year Notes: Medical Rx Dental Vision $337,797 $389,490 $105,817 $16,695 1,372 _ $246.21 x 1.0000 x 1.0965 _ $269.97 + $24.65 + $35.01 _ $329.63 x 37 x 5 _ $60,982 1,374 $283.47 1.0000 1.1901 $337.36 $4.25 n/a $341.61 37 5 $63,198 1,373 1,373 $77.07 $12.16 0.8581 1.0000 1.0949 1.0723 $72.41 $13.04 $5.75 $0.75 n/a n/a $78.16 $13.79 37 37 5 5 $14,460 $2,551 $141,190 $72,166 $77,544 $29,815 $877 $10,709 $9,278 $200, 389 $341,579 • Historical paid claims are net of stop -loss recoveries and Caremark rebates, and adjusted for historical plan design changes. • Medical administrative costs include the following fees PEPM: medical ASO fees of $15.95, medical management fees of $3.20, PPO access fees of $5.50. • Prescription drug administrative costs include fees of $4.25 PEPM. • Dental plan administrative costs include ASO fees of $5.75 PEPM. • Vision plan administrative costs include ASO fees of $0.75 PEPM. • Specific stop -loss premiums (PEPM) are $35.01 for employees and $52.52 for dependent units. City of Tukwila 2013 Renewal Report 9 10/11/2012 CITY OF TUKWILA Projected Monthly Funding for the LEOFF 1 Retiree Plans for the Period January 1, 2013 - December 31, 2013 Net adjusted paid claims for the 36 months ending 7/31 /2012 Covered retirees for the 36 months ending 5/31 /2012, 7/31 /2012, 6/30/2012, and 6/30/2012, respectively Claims cost per employee per month Impact of future plan design changes (if any) Trend ® 5.5 %, 10.7 %, 5.5 %, and 4.2% for 29 months Trended claims cost per employee per month with margin Administrative costs per employee per month Stop -loss premiums per employee per month (estimated) Projected composite funding per employee per month Total composite funding per employee per month Current composite funding per employee per month Required increase Medical Rx Dental Vision $337,797 $389,490 $105,817 $16,695 + 1,372 1,374 1,373 1,373 _ $246.21 $283.47 $77.07 $12.16 x 1.0000 1.0000 0.8581 1.0000 x 1.1392 1.2792 1.1368 1.1038 = $280.48 $362.62 $75.18 $13.42 + $25.22 $4.50 $4.38 $0.77 + $45.28 n/a n/a n/a _ $350.98 $367.12 $79.56 $14.19 $732.30 $79.56 _ $976.79 $59.16 _ -25.0% 34.5% Recommended increase = 0.0% 0.0% 0.0% Notes: • Historical paid claims are net of stop -loss recoveries and Caremark rebates, adjusted for historical plan design changes. • Medical administrative costs include the following fees PEPM: medical ASO fees of $16.43, medical management fees of $3.30, PPO access fees of $5.50. • Prescription drug administrative costs include fees of $4.50 PEPM. • Dental plan administrative costs include ASO fees of $4.38 PEPM. • Vision plan administrative costs include ASO fees of $0.77 PEPM. • Specific stop -loss premiums (PEPM) are estimated to increase by 29.3% to $45.28 for employees and $67.93 for dependent units. City of Tukwila 2013 Renewal Report 10 Exhibit F 10/11/2012 INCURRED BUT NOT REPORTED CLAIMS ESTIMATES This section of the report provides IBNR estimates to use in the "Health Self - Insurance Fund: Statement of Revenue Et Expense ". We estimated the incurred but not reported (IBNR) liability as of July 31, 2012 using actuarial methods. Based on the results, as well as a review of actual run -out, we selected average lag days of 67.5 days, 23.6 days, 31.2 days, and 58.4 days for medical, pharmacy, dental, and vision, respectively. These are within expected norms. Using average lag days and net adjusted paid claims, we estimated the IBNR liability as of July 31, 2012. Next, we developed the estimated IBNR liability as of December 31, 2012 by trending the July 31, 2012 estimates to year -end. We did not add an explicit margin for claims fluctuations because the amount of the reserve in the fund balance is sufficient to cover expected claim fluctuations. We then added administrative costs. We estimated IBNR liabilities for future periods by applying trend. Finally, we allocated the liability to actives and LEOFF 1 retirees based on headcount as of July 31, 2012. Exhibit G shows IBNR estimates for LEOFF 1 retirees. N -1 City of Tukwila 2013 Renewal Report 11 10/11/2012 Exhibit G City of Tukwila Estimated IBNR - LEOFF 1 Retirees Medical, Rx, Dental, and Vision Medical Rx Dental Vision Total Average claim lag in days 67.5 23.6 31.2 58.4 Divided by the number of days in the 12 months ending 7/31/2012 - 366.00 366.00 366.00 366.00 Portion of year = 0.1844 0.0645 0.0852 0.1596 Net paid claims in the 12 months ending 7/31/2012* x $3,094,544 $805,327 $573,863 $25,417 Unadjusted IBNR = $570,715 $51,928 $48,919 $4,056 Trend adjustment x 1.0444 1.0404 1.0228 1.0167 Exposure adjustment x 0.9860 1.1004 1.1851 0.7035 Estimated IBNR = $587,701 $59,449 $59,296 $2,901 Estimated administration* x $1,922 $527 $688 $90 Number of actives and retirees as of 7/31/2012 - 343 343 363 195 Number of retirees as of 7/31/2012 x 39 39 39 39 Total estimated IBNR as of 12/31/2012, rounded = $68,700 $7,300 $7,100 $700 Recommended IBNR as of 12/31/2012, rounded $68,700 $7,300 $7,100 $700 Total estimated IBNR as of 12/31/2013, rounded = $72,500 $8,100 $7,500 $700 Total estimated IBNR as of 12/31/2014, rounded = $76,500 $9,000 $7,900 $700 Total estimated IBNR as of 12/31/2015, rounded = $80,700 $10,000 $8,300 $700 Notes: Paid claims are net of stop -loss recoveries. ** HMA charges 3 months of administrative fees (excluding PPO access fees) to adjudicate 12 months of run -out claims. This is the basis for the administrative fees included above. Stop -loss premiums are not included. $83, 800 $83,800 $88,800 $94,100 $99,700 City of Tukwila 2013 Renewal Report 12 10/11/2012 PROJECTED FUND EXPENSES Exhibit H on the following page provides a statement of revenue and expense for 2012 through 2015. The purpose of this exhibit is to determine the rate increases necessary to meet the City's financial goal of maintaining reserves at 1 x IBNR for claims fluctuations plus 1.5 x IBNR for the IBNR liability itself (2.5 x IBNR, in total). The source of each item follows: • For the first 7 months of 2012, medical /Rx, dental, and vision premiums paid to the fund use actual accruals. For the last 5 months of 2012, premiums paid use enrollment, as shown in Exhibit 1, multiplied by the current rates for 2012. We assumed no change in the HMA rates for 2013, 2014, and 2015. We also applied no increase to the dental and vision premiums for 2013, 2014, or 2015. • The City elected not to fund the LEOFF 1 premiums in 2013 and 2014. We added an adjustment to the Fund Income to account for this reduction in funding. The rate exhibits show the premiums in full, for use in calculating COBRA rates. • Medical /Rx, dental, and vision claims and related plan costs use the information shown in Exhibits E and F. We based the claims and related plan costs for 2013 on the assumed increases shown in the exhibit. • IBNR uses the estimates developed in Exhibit G. • All other fund expenses use the information provided by the City's Finance Department or use the assumed increases shown in the exhibit (as provided by Finance). N cfl City of Tukwila 2013 Renewal Report 13 10/11/2012 0 CITY OF TUKWILA Health Self-Insurance Fund 503: Statement of Revenue and Expense - LEOFF 1 Retirees Funding Rate Changes Plan 2013 2014 2015 Medioumx Dental Vision 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Accounts Forecasts Change Revenue 1.1 1.2 City Contributions -*wA Interest $466,661 $3,552 $459,962 $3,697 $459,962 $3,828 $459,962 $3a99 -1.4% 4.1m 0.0% 3.5m 0.0% 1.9u Tota/ - Revenue $470,213 $463,659 $463,790 $463,861 '1.4% 0.0% 0.0% Expense Administrative Costs 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 ASO, UR, PPO, HIPAA, COBRA Stop-Loss Insurance Premiums Miscellaneous a Broker Fees City Support Services GASB Audit Patient-Centered Outcome Trust Fees LTC Insurance $17,259 $15,755 $2'040 $4,619 $10,00 $700 $m $8,535 $15,485 $20'10* $2'040 $9,619 $m'mm $0 $37 $8,962 $16,259 $23'120 $2'040 $9,909 $10,00 $0 $74 $9,410 $17,072 $2*'588 $2'040 $m'om $m'mm $800 $74 $9,881 '10.3m 27.6% 0.0% ,ox.zm| 0.0% 100.0m ,00.om 5.0m 5.0m 15.0m 0.0% 3.0m 0.0% 0.0% ,00.om 5.0m 5.0m 15.0m 0.0% 3.0m 0.0% 100.0m 0.0% 5.0m Subtotal - Administrative Costs $58,908 $66'247 $70'812 $7*'661 12.5% 6.9m 8.3m Claim Payments 3.1 3.2 3.3 wemcoupho,mocv - cla/mpovments oenml - ommpovment, Vision - Cjaim Payments $262,067 $43'211 $3'289 $285,537 $33,380 $5,958 $309,704 $35,199 $6'206 $335'916 $37,117 $6'*65 9.0% -22.8% 81.1% 8.5m 5.5% 4.2m 8.5m 5.5% 4.2m Subtotal - Claim Payments $308,567 $32*'875 $351,109 $379,498 5.3m 8.1% 8.1% Total -Expense $367'*75 $391'122 $421,921 $456'159 6.4% 7.9% 8.1% wetTvtal - punu|novme $102'739 $72'537 $41,869 $7'702 -29.4% '*2.3m '81.6m Adjustment to Fund Income $o ($ *mnm) (S*mnm) $o n/a 0.0% ,00.om Adjusted Fund Income $102'739 f$,87 -,"s. (S*mOW. $7'702 '477.1m 7.9% 'm,.xm IBNR Funding 4.1 4.2 Beginning /awnReserve Ending IBNR Reserve $55,200 $83'800 $83'800 $88,800 $88'800 $94,100 $94'100 $99,700 51.8% 6.0m 6.0m 6.0m 6.0m 6.0m Change in IBNR f$,'8 600. 6'0 000. ($60 600. ($60 600. -82.5% 6.0m 5.7% Fund Balance (Net of IBNR Reserve) 5.1 5.2 Beginning Fund Baance Ending Fund Baance1 $1'822'186 $1'896'32* $1'896'32* $1,963,861 $1,963,861 $2,000,430 $2,000,430 $2'002'532 4.1% 3.6% 3.6% 1.9% 1.9% o.,m r �m l a,�e� Goal 1 22.63 22.12 21.26 20.09 I Footnotes: 1. Ending Fund Baance = Beginning Fund Baance + Fund Income + Change In IBNR 2. Target City of Tukwila 2013 Renewal Report Exhibit H 14 10/11/2012 MONTHLY RATES Exhibit 1 provides monthly rates for the health plans for 2012 and 2013. There are no retiree contributions. Enrollment uses July 2012 enrollment provided by the City of Tukwila and HMA. We assumed no change in total enrollment in 2013. Exhibit J provides all COBRA rates for 2013. W City of Tukwila 2013 Renewal Report 15 10/11/2012 W N Exhibit 1 CITY OF TUKWILA 2012 a 2013 Monthly Rates — LEOFF 1 Retirees TOTAL ANNUAL AMOUNT 2012 2013 Vision Med /Rx Dental Vision Dental Vision Totall Med /Rx Dental Vision n/a $433,695 37 n/a Enrollment Enrollment Enrollment Med / Rx Dental Vision Total Enrollment* Enrollment* Enrollment* Med / Rx Dental Vision Total LEOFF 1 Retirees n/a n/a 37 $0 n/a n/a 37 $0 Total 37 37 37 Medicare- ineligible 7 7 7 $976.79 $59.16 $0.00 $1,035.95 7 7 7 $976.79 $59.16 $0.00 $1,035.95 Medicare- eligible 30 30 30 $976.79 $59.16 $0.00 $1,035.95 30 30 30 $976.79 $59.16 $0.00 $1,035.95 TOTAL ANNUAL AMOUNT Med /Rx Dental Vision Total Med /Rx Dental Vision Totall • HMA Medical /Rx 37 n/a n/a $433,695 37 n/a n/a $433,695 • Dental n/a 37 n/a $26,267 n/a 37 n/a $26,267 • Vision n/a n/a 37 $0 n/a n/a 37 $0 Total 37 37 37 $459,962 37 37 37 $459,962 `Based on a projected increase in headcount of 0 employees. City of Tukwila 2013 Renewal Report 16 10/11/2012 Exhibit J CITY OF TUKWILA 2012 Et 2013 Monthly COBRA Rates City of Tukwila 2013 Renewal Report 17 10/11/2012 2012 2013 Med /Rx Enrollment Dental Enrollment Vision Enrollment Med /Rx Dental Vision Total Med /Rx Enrollment Dental Enrollment Vision Enrollment Med /Rx Dental Vision Total HMA COBRA REGULAR Employee Only $427.72 $80.18 $12.24 $520.14 $427.72 $80.18 $12.24 $520.14 Employee + Spouse $900.87 $168.40 $12.24 $1,081.51 $900.87 $168.40 $12.24 $1,081.51 Employee + Spouse + Child O O O $1,122.41 $216.53 $12.24 $1,351.18 O O O $1,122.41 $216.53 $12.24 $1,351.18 Employee + Spouse + Children $1,303.82 $256.64 $12.24 $1,572.70 $1,303.82 $256.64 $12.24 $1,572.70 Employee + Child $649.25 $128.31 $12.24 $789.80 $649.25 $128.31 $12.24 $789.80 Employee + Children $830.66 $168.42 $12.24 $1,011.32 $830.66 $168.42 $12.24 $1,011.32 Spouse Only 2 2 0 $473.15 $88.22 $12.24 $573.61 2 2 0 $473.15 $88.22 $12.24 $573.61 Child Only 1 1 0 $221.53 $48.13 $12.24 $281.90 1 1 0 $221.53 $48.13 $12.24 $281.90 HMA COBRA LEOFF Employee Only $583.86 $80.18 $12.24 $676.28 $583.86 $80.18 $12.24 $676.28 Employee + Spouse $1,057.02 $168.40 $12.24 $1,237.66 $1,057.02 $168.40 $12.24 $1,237.66 Employee + Spouse + Child O O O $1,278.55 $216.53 $12.24 $1,507.32 O O O $1,278.55 $216.53 $12.24 $1,507.32 Employee + Spouse + Children $1,459.95 $256.64 $12.24 $1,728.83 $1,459.95 $256.64 $12.24 $1,728.83 Employee + Child $805.39 $128.31 $12.24 $945.94 $805.39 $128.31 $12.24 $945.94 Employee + Children $986.80 $168.42 $12.24 $1,167.46 $986.80 $168.42 $12.24 $1,167.46 Spouse Only 0 0 0 $473.16 $88.22 $12.24 $573.62 0 0 0 $473.16 $88.22 $12.24 $573.62 Child Only 0 0 0 $221.53 $48.13 $12.24 $281.90 0 0 0 $221.53 $48.13 $12.24 $281.90 GROUP HEALTH COBRA REGULAR Employee Only $522.68 $80.18 $0.00 $602.86 $614.13 $80.18 $0.00 $694.31 Employee + Spouse $1,052.92 $168.40 $0.00 $1,221.32 $1,237.14 $168.40 $0.00 $1,405.54 Employee + Spouse + Child O O O $1,322.89 $216.53 $0.00 $1,539.42 O O O $1,554.35 $216.53 $0.00 $1,770.88 Employee + Spouse + Children $1,592.19 $256.64 $0.00 $1,848.83 $1,870.77 $256.64 $0.00 $2,127.41 Employee + Child $792.63 $128.31 $0.00 $920.94 $931.32 $128.31 $0.00 $1,059.63 Employee + Children $1,061.95 $168.42 $0.00 $1,230.37 $1,247.77 $168.42 $0.00 $1,416.19 Spouse Only 0 0 0 $530.24 $88.22 $0.00 $618.46 0 0 0 $623.01 $88.22 $0.00 $711.23 Child Only 0 0 0 $269.95 $48.13 $0.00 $318.08 0 0 0 $317.19 $48.13 $0.00 $365.32 GROUP HEALTH COBRA LEOFF 0 0 0 0 0 0 Employee Only $673.23 $80.18 $0.00 $753.41 0 $791.05 $80.18 $0.00 $871.23 Employee + Spouse $1,203.46 $168.40 $0.00 $1,371.86 0 $1,414.06 $168.40 $0.00 $1,582.46 Employee + Spouse + Child O O O $1,473.44 $216.53 $0.00 $1,689.97 0 O $1,731.29 $216.53 $0.00 $1,947.82 Employee + Spouse + Children $1,742.74 $256.64 $0.00 $1,999.38 0 $2,047.72 $256.64 $0.00 $2,304.36 Employee + Child $943.18 $128.31 $0.00 $1,071.49 0 $1,108.24 $128.31 $0.00 $1,236.55 Employee + Children $1,212.50 $168.42 $0.00 $1,380.92 0 $1,424.69 $168.42 $0.00 $1,593.11 Spouse Only 0 0 0 $530.24 $88.22 $0.00 $618.46 0 0 0 $623.01 $88.22 $0.00 $711.23 Child Only 0 0 0 $269.95 $48.13 $0.00 $318.08 0 0 0 $317.19 $48.13 $0.00 $365.32 TOTAL ANNUAL AMOUNT Med /Rx Dental Vision Total Med /Rx Dental Vision Total • HMA Medical /Rx 3 n/a n/a $14,014 3 n/a n/a $14,014 • Dental n/a 3 0 $2,695 n/a 3 0 $2,695 • Vision n/a n/a 0 $0 n/a n/a 0 $0 • Group Health Medical /Rx 0 n/a n/a $0 0 n/a n/a $0 Total 3 3 0 $16,709 3 3 0 $16,709 City of Tukwila 2013 Renewal Report 17 10/11/2012 34 CITY OF TUKWILA 2013 Healthcare Budget Projections — Active Employees October 11, 2012 j- lealthcare FA /actuaries 16519 107th Place NE Bothell, Washington 98011 t: (425) 939 -7444 f: (425) 939 -0089 www.HealthcareActuaries.com 35 TABLE OF CONTENTS Introduction 1 Composite Rate Development 2 Composite Rate Funding Projections 10 Incurred but Not Reported (IBNR) Claims Estimates 13 Projected Fund Expenses 15 Monthly Rates Et Employee Contributions 17 INTRODUCTION Healthcare Actuaries prepared this report for the City of Tukwila. The purpose of this report is to provide 2013 healthcare funding rates based on the City's goal to maintain reserves equal to 2.5 times IBNR (1 x IBNR to fund the IBNR reserve, plus 1.5 x IBNR for contingencies) in the City's Medical Self - Insurance Fund (Fund 502). Information Regarding the Data The basis for this report is information provided by the City, the City's broker (R.L. Evans Company, Inc.), and the City's third -party administrator (Healthcare Management Administrators, or HMA). The information provided appears to be reasonable; however, we did not audit it nor verify it for accuracy. Report Contents Ft Scope This report includes the following information: • market trend rates for medical, pharmacy, and dental coverage; • analysis of plan- specific trend rates separately for medical, pharmacy, dental, and vision benefits; • projected composite rates, separately for medical, pharmacy, dental, and vision benefits; • proposed rates for medical /pharmacy, dental, and vision benefits by plan and tier; • development of annual budgets for the City's Medical Self - Insurance Fund for 2013 through 2015. W -1 City of Tukwila 2013 Renewal Report 1 10/11/2012 COMPOSITE RATE DEVELOPMENT Introduction We developed funding rates for the medical /pharmacy, dental, and vision plans using the following general process: 1) Collected, analyzed, and reviewed historical claims experience. 2) Adjusted paid claims for historical plan design changes and for stop -loss recoveries. 3) Reviewed large claims to determine if adjustments are necessary due to an unusually high number of large claims, or for individual cases of an unusually high dollar amount. 4) Calculated and compared historical trend rates with market trend rates; selected trend assumptions. 5) Using adjusted historical claims and enrollment and assumed trend rates, calculated projected claims for the remainder of the 2012 plan year and the 2013 plan year. Historical Experience The development of projected funding rates depends on historical claims information, including the number of covered employees or members by month, paid claims by month and large claims information. Historical information is also useful in understanding the performance of the plans, and how one might expect them to perform in the near future. Healthcare Reform and Plan Design Changes After a review of historical experience, we documented historical and future plan design changes and developed adjustment factors. For 2013, there are no benefit adjustments. Large Claims Adjustment In addition to plan design changes, we performed a review of large claims to determine the frequency and magnitude of large claims. If one or more large claims exist that one would not expect to recur in future years, or if the number of claims is outside expected levels, removing a portion of the large claims would be appropriate. Large claims for 2012 are higher than they were in 2011. They are 37.2% of medical and pharmacy claims (through July), whereas in 2011 they were 24.2% (through December). We removed stop -loss recoveries received for the portion of large claims in excess of the specific stop -loss deductible, since the stop -loss carrier covers that portion of those claims. Trend Analysis We developed plan- specific trend rates using adjusted historical claims and enrollment using exponential regression techniques applied to a rolling twelve -month average of paid claims per employee per month (PEPM). We calculated trend rates for the most recent 12 and 24 months of rolling- twelve -month claims data for the medical, pharmacy, dental and vision claims. Given the small number of covered employees and members, one cannot rely entirely on plan- specific trend rates alone. There is too much variability in trend rates for the plan- specific trend data to be credible on its own. Therefore, we use a weighted average of the plan- specific trend rates and market trend rates to set the trend rates used in the projections. The results of the analysis follow, including a comparison to market trend rates and the applied trend rates used in the projections: City of Tukwila 2013 Renewal Report 2 10/11/2012 24 months 12 months 24 months 12 months 24 months 12 months 24 months 12 months -4.5% 14.6% 3.3% 8.8% - 0.1 % - 4.6% 5.4% 1.9% Exhibits A and B show market rates used by carriers in projecting renewal rates. Exhibits C through F show the development of the trend rates based on 12 -month rolling averages. 1 2012 Segal Health Plan Cost Trend Survey or Arlen Group Trends for 2nd quarter 2012. 2 Arlen Group Trend for PPOs w/o Rx. 3 Arlen Group Trend for Rx. 4 Arlen Group Trend for FFS /Indemnity Dental Plans. ca 5 Segal Health Plan Cost Trend for Reasonable and Customary (REtC) Vision Plans. CID City of Tukwila 2013 Renewal Report 3 10/11/2012 CITY OF TUKWILA Medical a Rx Plans Carrier Medical and Rx Trend Rates — Western U.S. Category 2nd Quarter 2009 To 2nd Quarter 2012 Low High Average 2009 Q2 I Last 13 Quarters 1 2012 Q2 HMO 12.1% POS 12.2% PPO 11.9% HDHP n/a Indemnity 15.5% Rx 11.5% 10.1% 10.1% 10.0% 10.0% 10.6% 10.6% 9.9% 9.9% 13.6% 13.2% 10.1% 10.1% 12.9% 11.8% 13.1% 11.9% 12.8% 11.9% 12.6% 11.5% 15.5% 14.5% 12.3% 11.4% Chart Notes: Red circles are the first and last months shown and correspond to the data points to the immediate left and right of the chart. Blue squares correspond to the low and high data points. If the low or high point is the same as an end point, it will only show a blue square. The black chart line shows the trends for each quarter. The dashed green line is the average trend over the last 13 quarters. City of Tukwila 2013 Renewal Report Exhibit A 4 10/11/2012 CITY OF TUKWILA Dental Plans Carrier Dental Trend Rates — Western U.S. Category 2nd Quarter 2009 To 2nd Quarter 2012 Low High Average 2009 Q2 I Last 13 Quarters 1 2012 Q2 DMO 4.6% DPO 7.0% Indemnity 7.4% 3.6% 3.0% 5.4% 5.2% 6.2% 6.2% 4.8% 4.1 7.6% 6.5% 8.0% 7.1 Chart Notes: Red circles are the first and last months shown and correspond to the data points to the immediate left and right of the chart. Blue squares correspond to the low and high data points. If the low or high point is the same as an end point, it will only show a blue square. The black chart line shows the trends for each quarter. The dashed green line is the average trend over the last 13 quarters. City of Tukwila 2013 Renewal Report Exhibit B 5 10/11/2012 $1,600 $1,400 $1,200 $1,000 Cost $800 PEPM $600 $400 $200 Exhibit C CITY OF TUKWILA Medical Trend: Rolling -12 -Month Exponential Trend (Actives) $0 A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J 2010 2011 2012 PEPM (lagged 2 months) Rolling 12 -Month Average Exponential Trend ® 14.6% City of Tukwila 2013 Renewal Report 6 10/11/2012 $300 $250 Exhibit D CITY OF TUKWILA Rx Trend: Rolling-1 2-Month Exponential Trend (Actives) Cost $150 PEPM $0 A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J 2010 2011 2012 PEPM (lagged 0 months) City of Tukwila 2013 Renewal Report Rolling 12 -Month Average Exponential Trend ® 8.8% 7 10/11/2012 Cost PEPM $250 $200 $150 $100 $50 $0 Exhibit E CITY OF TUKWILA Dental Trend: Rolling -12 -Month Exponential Trend (Actives) A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J 2010 2011 2012 PEPM (lagged 0 months) Rolling 12 -Month Average Exponential Trend ® -0.1% City of Tukwila 2013 Renewal Report 8 10/11/2012 CITY OF TUKWILA Vision Trend: Rolling -12 -Month Exponential Trend (Actives) $35 $30 Exhibit F $20 Cost PEPM $15 $5 $0 A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J 2010 2011 2012 PEPM (lagged 0 months) City of Tukwila 2013 Renewal Report Rolling 12 -Month Average Exponential Trend ® 5.4% 9 10/11/2012 COMPOSITE RATE FUNDING PROJECTIONS We developed projected funding rates based on the most recent twelve months of adjusted paid claims, net of any specific stop -loss recoveries. We developed projected funding rates on a "paid" rather than an "incurred" basis, since the City budgets the change in IBNR separately. Next, we divided paid claims by the number of covered employees, resulting in projected paid claims per employee per month (PEPM). Then we lagged the number of covered employees utilized by two months for medical, zero months for pharmacy, one month for dental, and one month for vision, to provide a better match between enrollment and paid claims (this approximates incurred claims). Finally, we adjusted projected paid claims PEPM for trend from the midpoint of the experience period to the midpoint of the renewal period. The result is projected paid claims PEPM. To this, we added administration costs and stop -loss premiums. We did not add an explicit margin for claims fluctuations because the amount of the reserve in the fund balance is sufficient to cover expected claim fluctuations. Exhibit G illustrates the funding projections for 2012. We based total projected costs for the year on actual results for January through July, and projected results for August through December. Exhibit H illustrates the funding projections for 2013. City of Tukwila 2013 Renewal Report 10 10/11/2012 Exhibit G CITY OF TUKWILA Projected Costs for the Active Plans for the Period January 1, 2012 - December 31, 2012 Projected Costs for 8/1/2012 through 12/31/2012 Net adjusted paid claims for the 12 months ending 7/31/2012 Covered employees for the 12 months ending 5/31/2012, 7/31/2012, 6/30/2012, and 6/30/2012, respectively Claims cost per employee per month Impact of future plan design changes (if any) Trend @ 11.0 %, 10.0 %, 5.6 %, and 4.1% for 8.5 months Trended claims cost per employee per month with margin Administrative costs per employee per month Stop -loss premiums per employee per month Projected composite funding per employee per month, participating Current number of employees Number of months in rest of year Projected total costs for 8/1/2012 through 12/31/2012 Combined total costs for 8/1/2012 through 12/31/2012 Actual Costs Through 7/31/2012 Net paid claims for 2012 year -to -date through July, by plan Actual administration costs Actual stop -loss premiums Total actual costs Projected total costs for the current plan year Notes: Medical Rx Dental Vision $2,993,204 $608,619 $535,675 $21,336 - 3,627 3,633 3,866 1,857 = $825.26 $167.53 $138.56 $11.49 x 1.0000 1.0000 0.8651 1.0000 x 1.0767 1.0696 1.0391 1.0285 = $888.55 $179.19 $124.55 $11.82 + $24.65 $4.25 $5.75 $0.75 + $77.86 n/a n/a n/a = $991.06 $183.44 $130.30 $12.57 x 306 306 343 155 x 5 5 5 5 = $1,516,322 $280,663 $223,465 $9,742 $2,030,191 $2,068,550 $369,739 $319,785 $13,496 $82,822 $166,884 $3,021,276 $5,051,467 • Historical paid claims are net of stop -loss recoveries and Caremark rebates, and adjusted for historical plan design changes. • Medical administrative costs include the following fees PEPM: medical ASO fees of $15.95, medical management fees of $3.20, PPO access fees of $5.50. • Prescription drug administrative costs include fees of $4.25 PEPM. • Dental plan administrative costs include ASO fees of $5.75 PEPM. • Vision plan administrative costs include ASO fees of $0.75 PEPM. • Specific stop -loss premiums (PEPM) are $35.01 for employees and $52.52 for dependent units. City of Tukwila 2013 Renewal Report 11 10/11/2012 CITY OF TUKWILA Projected Monthly Funding for the Active Plans for the Period January 1, 2013 - December 31, 2013 Net adjusted paid claims for the 12 months ending 7/31 /2012 Covered employees for the 12 months ending 5/31 /2012, 7/31/2012, 6/30/2012, and 6/30/2012, respectively Claims cost per employee per month Impact of future plan design changes (if any) Trend ® 11.0 %, 10.0 %, 5.6 %, and 4.1% for 17 months Trended claims cost per employee per month with margin Administrative costs per employee per month Stop -loss premiums per employee per month (estimated) Projected composite funding per employee per month Total composite funding per employee per month Current composite funding per employee per month Required increase Medical Rx Dental Vision $2,993,204 $608,619 $535,675 $21,336 + 3,627 3,633 3,866 1,857 _ $825.26 $167.53 $138.56 $11.49 x 1.0000 1.0000 0.8651 1.0000 x 1.1593 1.1441 1.0798 1.0579 = $956.72 $191.67 $129.43 $12.15 + $25.22 $4.50 $5.88 $0.77 + $100.70 n/a n/a n/a _ $1,082.64 $196.17 $135.31 $12.92 $1,278.81 $135.31 $12.92 _ $1,005.78 $189.04 $12.00 = 27.1% -28.4% 7.7% Recommended increase = 0.0% 0.0% 0.0% Notes: • Historical paid claims are net of stop -loss recoveries and Caremark rebates, adjusted for historical plan design changes. • Medical administrative costs include the following fees PEPM: medical ASO fees of $16.43, medical management fees of $3.30, PPO access fees of $5.50. • Prescription drug administrative costs include fees of $4.50 PEPM. • Dental plan administrative costs include ASO fees of $5.88 PEPM. • Vision plan administrative costs include ASO fees of $0.77 PEPM. • Specific stop -loss premiums (PEPM) are estimated to increase by 29.3% to $45.28 for employees and $67.93 for dependent units. City of Tukwila 2013 Renewal Report 12 Exhibit H 10/11/2012 INCURRED BUT NOT REPORTED CLAIMS ESTIMATES This section of the report provides IBNR estimates to use in the "Health Self - Insurance Fund: Statement of Revenue Et Expense ". We estimated the incurred but not reported (IBNR) liability as of July 31, 2012 using actuarial methods. Based on the results, as well as a review of actual run -out, we selected average lag days of 67.5 days, 23.6 days, 31.2 days, and 58.4 days for medical, pharmacy, dental, and vision, respectively. These are within expected norms. Using average lag days and net adjusted paid claims, we estimated the IBNR liability as of July 31, 2012. Next, we developed the estimated IBNR liability as of December 31, 2012 by trending the July 31, 2012 estimates to year -end. We did not add an explicit margin for claims fluctuations because the amount of the reserve in the fund balance is sufficient to cover expected claim fluctuations. We then added administrative costs. We estimated IBNR liabilities for future periods by applying trend. Finally, we allocated the liability to actives and LEOFF 1 retirees based on headcount as of July 31, 2012. Exhibit 1 shows IBNR estimates for active participants. cfl City of Tukwila 2013 Renewal Report 13 10/11/2012 Exhibit! City of Tukwila Estimated IBNR - Actives Medical, Rx, Dental, and Vision Medical Rx Dental Vision Total Average claim lag in days 67.5 23.6 31.2 58.4 Divided by the number of days in the 12 months ending 7/31/2012 + 366.00 366.00 366.00 366.00 Portion of year = 0.1844 0.0645 0.0852 0.1596 Net paid claims in the 12 months ending 7/31/2012* x $3,094,544 $805,327 $573,863 $25,417 Unadjusted IBNR = $570,715 $51,928 $48,919 $4,056 Trend adjustment x 1.0444 1.0404 1.0228 1.0167 Exposure adjustment x 0.9860 1.1004 1.1851 0.7035 Estimated IBNR = $587,701 $59,449 $59,296 $2,901 Administrative fees ** + $14,983 $4,631 $6,401 $452 Number of actives and retirees as of 7/31/2012 + 343 343 363 195 Number of actives as of 7/31/2012 x 304 304 324 156 Total estimated IBNR as of 12/31/2012, rounded = $535,900 $57,300 $59,300 $2,800 Recommended IBNR as of 12/31/2012, rounded $535,900 $57,300 $59,300 $2,800 Total estimated IBNR as of 12/31/2013, rounded = $594,800 $63,000 $62,600 $2,900 Total estimated IBNR as of 12/31/2014, rounded = $660,200 $69,300 $66,100 $3,000 Total estimated IBNR as of 12/31/2015, rounded = $732,800 $76,200 $69,800 $3,100 Notes: * Paid claims are net of stop -loss recoveries. ** HMA charges 3 months of administrative fees (excluding PPO access fees) to adjudicate 12 months of run -out claims. This is the basis for the administrative fees included above. Stop -loss premiums are not included. $655,300 $655,300 $723,300 $798,600 $881,900 City of Tukwila 2013 Renewal Report 14 10/11/2012 PROJECTED FUND EXPENSES Exhibit J on the following page provides a statement of revenue and expense for 2012 through 2015. The purpose of this exhibit is to determine the rate increases necessary to meet the City's financial goal of maintaining reserves at 1 x IBNR for claims fluctuations plus 1.5 x IBNR for the IBNR liability itself (2.5 x IBNR, in total). The source of each item follows: • For the first 7 months of 2012, medical /Rx, dental, and vision premiums paid to the fund use actual accruals. For the last 5 months of 2012, premiums paid use enrollment, as shown in Exhibit K, multiplied by the current rates for 2012. For active medical /Rx, we assumed no change in the HMA rates for 2013, 2014, and 2015. We used actual Group Health premiums for 2013 (a 17.5% increase for regular employees and a 17.5% increase for LEOFF 1 employees) and assumed a 10.0% increases for 2014 and 2015. We assumed no change in medical funding rates for 2013 and 2014, and a 27.5% increase in funding rates for 2015. We also applied no increase to the dental and vision premiums for 2013, 2014, or 2015. • Medical /Rx, dental, and vision claims and related plan costs use the information shown in Exhibits G and H. We based the claims and related plan costs for 2013 on the assumed increases shown in the exhibit. • Employee contributions use enrollment, as shown in Exhibit K, multiplied by the contributions. As we understand it, there are no full -time employee contributions. However, part -time employees pay contributions, and this exhibit shows estimates of those amounts. • IBNR uses the estimates developed in Exhibit I. • COBRA premiums use current enrollment and rates. • All other fund expenses use the information provided by the City's Finance Department or use the assumed increases shown in the exhibit (as provided by Finance). 01 City of Tukwila 2013 Renewal Report 15 10/11/2012 CITY OF TUKWILA Health Self-Insurance Fund 502: Statement of Revenue and Expense - Actives Accounts Plan 2013 2014 2015 Medical/Rx 0.0% 0.0% 27.5% 2012 Group Health 17.5% 10.0% 10.0% Funding Rate Changes 2015 Revenue Group Health L1 17.5% 10.0% 10.0% City Contributions - HMA Dental 0.0% 0.0% 0.0% $5,456,297 Vision 0.0% 0.0% 0.0% Accounts Forecasts Change # Account Name 2012 I 2013 I 2014 I 2015 2013 1 2014 I 2015 Revenue 1.1 City Contributions - HMA $4,404,631 $4,450,620 $4,450,620 $5,456,297 1.0% 0.0% 22.6% 1.2 City Contributions - Group Health $214,040 $251,490 $276,639 $304,303 17.5% 10.0% 10.0% 1.3 Employee Contributions $28,000 $28,000 $28,000 $35,700 0.0% 0.0% 27.5% 1.4 COBRA Premiums $22,626 $16,709 $16,709 $20,563 -26.2% 0.0% 23.1% 1.4 Interest $100,000 $86,893 $73,242 $50,748 -13.1% -15.7% -30.7% Total - Revenue $4,769,298 $4,833,712 $4,845,210 $5,867,611 1.4% 0.2% 21.1% Expense Administrative Costs 2.1 ASO, UR, PPO, HIPAA, COBRA $137,481 $134,777 $141,516 $148,592 -2.0% 5.0% 5.0% 2.2 Stop-Loss Insurance Premiums $286,010 $369,770 $425,236 $489,021 29.3% 15.0% 15.0% 2.3 Broker and Actuary Fees $30,400 $30,900 $31,800 $32,800 1.6% 3.0% 3.0% 2.4 City Support Services $80,305 $73,709 $75,500 $77,765 -8.2% 2.4% 3.0% 2.5 Wellness $13,421 $18,000 $18,000 $18,000 34.1% 0.0% 0.0% 2.6 Audit $5,700 $0 $0 $6,700 -100.0% 0.0% 100.0% 2.7 Patient-Centered Outcomes Trust Fees $0 $888 $1,776 $1,776 100.0% 100.0% 0.0% Subtotal - Administrative Costs $553,317 $628,044 $693,828 $774,654 13.5% 10.5% 11.6% Claim Payments 3.1 Medical/Pharmacy - Claim Payments $4,071,930 $4,216,889 $4,673,498 $5,179,549 3.6% 10.8% 10.8% 3.2 Dental - Claim Payments $533,388 $532,734 $562,407 $593,733 -0.1% 5.6% 5.6% 3.3 Vision - Claim Payments $22,657 $22,599 $23,514 $24,495 -0.3% 4.1% 4.2% 3.4 Group Health Premiums $214,040 $251,490 $276,639 $304,303 17.5% 10.0% 10.0% Subtotal - Claim Payments $4,842,015 $5,023,712 $5,536,058 $6,102,080 3.8% 10.2% 10.2% Total - Expense $5,395,332 $5,651,756 $6,229,886 $6,876,734 4.8% 10.2% 10.4% Net Total - Fund Income (5020 004= (0,8-0-.S 0,-, 00.0, 08- 070= 00.0, 000 i271 30.7% 69.3% -27.1% IBNR Funding 4.1 Beginning IBNR Reserve $430,600 $655,300 $723,300 $798,600 52.2% 10.4% 10.4% 4.2 Ending IBNR Reserve $655,300 $723,300 $798,600 $881,900 10.4% 10.4% 10.4% Change in IBNR 00220. 700= 00,08 0__ = 00,7s 000= 00,83 000 -69.7% 10.7% 10.6% Fund Balance 5.1 Beginning Fund Balance $6,490,580 $5,639,846 $4,753,802 $3,293,826 -13.1% -15.7% -30.7% 5.2 Ending Fund Balancel $5,639,846 $4,753,802 $3,293,826 $2,201,403 -15.7% -30.7% -33.2% Target Goal 1Ending Fund Balance + IBNR Reserve' I 8.61 6.57 4.12 2.50 Footnotes: 1. Ending Fund Balance = Beginning Fund Balance + Fund Income + Change In IBNR 2. Target Goal = 2.5. One times IBNR for IBNR plus 1.5 times IBNR for contingencies = 2.5 x IBNR City of Tukwila 2013 Renewal Report Exhibit J 16 10/11/2012 MONTHLY RATES a EMPLOYEE CONTRIBUTIONS Exhibit K provides monthly rates and employee contributions for the health plans for 2012 and 2013 for all employees. There are no full -time employee contributions. Enrollment uses July 2012 enrollment by plan and tier provided by the City of Tukwila and HMA. We assumed no change in total enrollment in 2013. Exhibit L provides COBRA premiums. 01 W City of Tukwila 2013 Renewal Report 17 10/11/2012 01 Exhibit K CITY OF TUKWILA 2012 ft 2013 Monthly Rates and Employee Contributions 2012 2013: Based on an 0.0% Medical /Rx Rate Increase, a 0.0% Dental Increase, and a 0.0% Vision Increase Med /Rx Enrollment Dental Enrollment Vision Enrollment Med / Rx Dental Vision Total Employee City Med /Rx Enrollment* Dental Enrollment* Vision Enrollment* Med / Rx Dental Vision Total Employee City HMA REGULAR Employee Only Employee + Spouse Employee + Spouse + Child Employee + Spouse + Children Employee + Child Employee + Children 46 62 52 126 8 9 54 65 54 128 9 10 24 32 27 63 4 5 $419.33 $883.21 $1,100.40 $1,278.25 $636.52 $814.37 $ 78.61 $165.10 $212.28 $251.61 $125.79 $165.12 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $509.94 $1,060.31 $1,324.68 $1,541.86 $ 774.31 $991.49 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $509.94 $1,060.31 $1,324.68 $1,541.86 $ 774.31 $991.49 46 62 52 126 8 9 54 65 54 128 9 10 24 32 27 63 4 5 $419.33 $883.21 $1,100.40 $1,278.25 $636.52 $814.37 $ 78.61 $165.10 $212.28 $251.61 $125.79 $165.12 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $509.94 $1,060.31 $1,324.68 $1,541.86 $ 774.31 $991.49 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $509.94 $1,060.31 $1,324.68 $1,541.86 $ 774.31 $991.49 HMA LEOFF Employee Only Employee + Spouse Employee + Spouse + Child Employee + Spouse + Children Employee + Child Employee + Children 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $572.41 $1,036.29 $1,253.48 $1,431.32 $ 789.60 $967.45 $ 78.61 $165.10 $212.28 $251.61 $125.79 $165.12 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $663.02 $1,213.39 $1,477.76 $1,694.93 $927.39 $1,144.57 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $663.02 $1,213.39 $1,477.76 $1,694.93 $927.39 $1,144.57 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $572.41 $1,036.29 $1,253.48 $1,431.32 $ 789.60 $967.45 $ 78.61 $165.10 $212.28 $251.61 $125.79 $165.12 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $663.02 $1,213.39 $1,477.76 $1,694.93 $927.39 $1,144.57 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $663.02 $1,213.39 $1,477.76 $1,694.93 $927.39 $1,144.57 GROUP HEALTH REGULAR Employee Only Employee + Spouse Employee + Spouse + Child Employee + Spouse + Children Employee + Child Employee + Children 9 3 4 2 9 3 4 2 0 0 0 0 0 0 $512.43 $1,032.27 $1,296.95 $1,560.97 $ 777.09 $1,041.13 578.61 $165.10 $212.28 $251.61 $125.79 $165.12 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $ 591.04 $1,197.37 $1,509.23 $1,812.58 $902.88 $1,206.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $ 591.04 $1,197.37 $1,509.23 $1,812.58 $902.88 $1,206.25 9 3 4 2 9 3 4 2 0 0 0 0 0 0 $602.09 $1,212.88 $1,523.87 $1,834.09 $913.06 $1,223.30 $ 78.61 $165.10 $212.28 $251.61 $125.79 $165.12 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $680.70 $1,377.98 $1,736.15 $2,085.70 $1,038.85 $1,388.42 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $680.70 $1,377.98 $1,736.15 $2,085.70 $1,038.85 $1,388.42 GROUP HEALTH LEOFF Employee Only Employee + Spouse Employee + Spouse + Child Employee + Spouse + Children Employee + Child Employee + Children 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $660.03 $1,179.86 $1,444.55 $1,708.57 $924.69 $1,188.73 $ 78.61 $165.10 $212.28 $251.61 $125.79 $165.12 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $ 738.64 $1,344.96 $1,656.83 $1,960.18 $1,050.48 $1,353.85 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $ 738.64 $1,344.96 $1,656.83 $1,960.18 $1,050.48 $1,353.85 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 775.54 $1,386.34 $1,697.35 $2,007.57 $1,086.51 $1,396.76 $ 78.61 $165.10 $212.28 $251.61 $125.79 $165.12 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $854.15 $1,551.44 $1,909.63 $2,259.18 $1,212.30 $1,561.88 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $854.15 $1,551.44 $1,909.63 $2,259.18 $1,212.30 $1,561.88 TOTAL ANNUAL AMOUNT Med /Rx Dental Vision Total Employee City Med /Rx Dental Vision Total Employee City • HMAMedical /Rx 303 n/a n/a $3,657,000 $0 $3,657,000 303 n/a n/a $3,657,000 $0 $3,657,000 • Dental n/a 340 n/a $771,300 50 $771,300 n/a 340 n/a $771,300 50 $771,300 • Vision n/a n/a 155 $22,320 $0 $22,320 n/a n/a 155 $22,320 $0 $22,320 • Group Health Medical/Rx 20 n/a n/a $214,040 SO 5214,040 20 n/a n/a 5251,490 $0 5251,490 Total 323 340 155 $4,664,660 $0 $4,664,660 323 340 155 54,702,110 $0 54,702,110 *Based on a projected increase in headcount of 0 employees. City of Tukwila 2013 Renewal Report 18 10/11/2012 Exhibit L CITY OF TUKWILA 2012 Et 2013 Monthly COBRA Rates City of Tukwila 2013 Renewal Report 19 10/11/2012 2012 2013 Med /Rx Enrollment Dental Enrollment Vision Enrollment Med /Rx Dental Vision Total Med /Rx Enrollment Dental Enrollment Vision Enrollment Med /Rx Dental Vision Total HMA COBRA REGULAR Employee Only $427.72 $80.18 $12.24 $520.14 $427.72 $80.18 $12.24 $520.14 Employee + Spouse $900.87 $168.40 $12.24 $1,081.51 $900.87 $168.40 $12.24 $1,081.51 Employee + Spouse + Child O O O $1,122.41 $216.53 $12.24 $1,351.18 O O O $1,122.41 $216.53 $12.24 $1,351.18 Employee + Spouse + Children $1,303.82 $256.64 $12.24 $1,572.70 $1,303.82 $256.64 $12.24 $1,572.70 Employee + Child $649.25 $128.31 $12.24 $789.80 $649.25 $128.31 $12.24 $789.80 Employee + Children $830.66 $168.42 $12.24 $1,011.32 $830.66 $168.42 $12.24 $1,011.32 Spouse Only 2 2 0 $473.15 $88.22 $12.24 $573.61 2 2 0 $473.15 $88.22 $12.24 $573.61 Child Only 1 1 0 $221.53 $48.13 $12.24 $281.90 1 1 0 $221.53 $48.13 $12.24 $281.90 HMA COBRA LEOFF Employee Only $583.86 $80.18 $12.24 $676.28 $583.86 $80.18 $12.24 $676.28 Employee + Spouse $1,057.02 $168.40 $12.24 $1,237.66 $1,057.02 $168.40 $12.24 $1,237.66 Employee + Spouse + Child O O O $1,278.55 $216.53 $12.24 $1,507.32 O O O $1,278.55 $216.53 $12.24 $1,507.32 Employee + Spouse + Children $1,459.95 $256.64 $12.24 $1,728.83 $1,459.95 $256.64 $12.24 $1,728.83 Employee + Child $805.39 $128.31 $12.24 $945.94 $805.39 $128.31 $12.24 $945.94 Employee + Children $986.80 $168.42 $12.24 $1,167.46 $986.80 $168.42 $12.24 $1,167.46 Spouse Only 0 0 0 $473.16 $88.22 $12.24 $573.62 0 0 0 $473.16 $88.22 $12.24 $573.62 Child Only 0 0 0 $221.53 $48.13 $12.24 $281.90 0 0 0 $221.53 $48.13 $12.24 $281.90 GROUP HEALTH COBRA REGULAR Employee Only $522.68 $80.18 $0.00 $602.86 $614.13 $80.18 $0.00 $694.31 Employee + Spouse $1,052.92 $168.40 $0.00 $1,221.32 $1,237.14 $168.40 $0.00 $1,405.54 Employee + Spouse + Child O O O $1,322.89 $216.53 $0.00 $1,539.42 O O O $1,554.35 $216.53 $0.00 $1,770.88 Employee + Spouse + Children $1,592.19 $256.64 $0.00 $1,848.83 $1,870.77 $256.64 $0.00 $2,127.41 Employee + Child $792.63 $128.31 $0.00 $920.94 $931.32 $128.31 $0.00 $1,059.63 Employee + Children $1,061.95 $168.42 $0.00 $1,230.37 $1,247.77 $168.42 $0.00 $1,416.19 Spouse Only 0 0 0 $530.24 $88.22 $0.00 $618.46 0 0 0 $623.01 $88.22 $0.00 $711.23 Child Only 0 0 0 $269.95 $48.13 $0.00 $318.08 0 0 0 $317.19 $48.13 $0.00 $365.32 GROUP HEALTH COBRA LEOFF 0 0 0 0 0 0 Employee Only $673.23 $80.18 $0.00 $753.41 0 $791.05 $80.18 $0.00 $871.23 Employee + Spouse $1,203.46 $168.40 $0.00 $1,371.86 0 $1,414.06 $168.40 $0.00 $1,582.46 Employee + Spouse + Child O O O $1,473.44 $216.53 $0.00 $1,689.97 0 O $1,731.29 $216.53 $0.00 $1,947.82 Employee + Spouse + Children $1,742.74 $256.64 $0.00 $1,999.38 0 $2,047.72 $256.64 $0.00 $2,304.36 Employee + Child $943.18 $128.31 $0.00 $1,071.49 0 $1,108.24 $128.31 $0.00 $1,236.55 Employee + Children $1,212.50 $168.42 $0.00 $1,380.92 0 $1,424.69 $168.42 $0.00 $1,593.11 Spouse Only 0 0 0 $530.24 $88.22 $0.00 $618.46 0 0 0 $623.01 $88.22 $0.00 $711.23 Child Only 0 0 0 $269.95 $48.13 $0.00 $318.08 0 0 0 $317.19 $48.13 $0.00 $365.32 TOTAL ANNUAL AMOUNT Med /Rx Dental Vision Total Med /Rx Dental Vision Total • HMA Medical /Rx 3 n/a n/a $14,014 3 n/a n/a $14,014 • Dental n/a 3 0 $2,695 n/a 3 0 $2,695 • Vision n/a n/a 0 $0 n/a n/a 0 $0 • Group Health Medical /Rx 0 n/a n/a $0 0 n/a n/a $0 Total 3 3 0 $16,709 3 3 0 $16,709 City of Tukwila 2013 Renewal Report 19 10/11/2012 01 01 Health Plan Funding Overview - Presented by: Douglas Evans R.L. Evans Company, Inc. vfttzp4owtg?;;amt..4.vmymss,,avwimv,m,;ew:,,vrtwvzy)o,,A,,,,,g:43w4cza;Y-treomw,k,vqtgatVotx.rwo4;.=ov:,tp:x5Kq-zaas'wk,;:;.We;tXtie(4tW:s.*Ff4WSzpgeOr.gppkNPZVAf;;Fr='Agl%iaRryaagt,4;t$WtvW ,41MORs4a, ACTIVE EMPLOYEE PLAN Acct 502 - Self-funded medical/Rx, Dental and Vision Program - HMA (subsidiary of Regence) provides administrative services. - Stoploss Insurance purchased through Sun Life (Currently $125K Deductible). - Roger Burton FSA MAAA FCA - Provides annual actuarial review to set funding rates. Required by WAC. Expenses - 2012 YTD (Sept) Stop Loss $216,478 Vision Claims 6% $16,133 0% Dental Claims $398,818 11% Admin $165,618 5% Rx Claims $456,815 13% Medical Clams $2,373,094 65% 502 - Active Employees' Plan Medical Claims (PEPM) $2,500 Medical Claims 24 mo Trend 20.1% $0 do do ti0 titi titi titi ;�ti titi titi '�, titi titi titi � � Q er� ;y,' titi titi titi � y�' PQtiti � a�ti �Jyti �ti� � 0 �o •a <<e 4, PQ\V, ' �e �o pesake �eQ 2012 $257 Feb $671 $561 $875 [a. lu $2,056 $357 ui Aug $685 $747 Oct Nov Dec 502 - Active Employees' Plan Dental Claims (PEPM) $300 $250 $200 $150 $100 $50 so Dental Claims 24 mo Trend 5.6% y° y° , p° ' �ti ti Pc ti J ti � ti \ ti P� ti hti titi titi titi titi ti'L titi 'I- titi titi titi yti ,L g ti ti so, 0 \a° 4;6 Q�a,� c§..• Q� a� a� 4\a�' Sep ,.. :Oct Nov. $114 ec 502 - Active Employees' Plan Prescription Claims (PEPM) $350 $300 $250 $200 $150 $100 $50 $0 0 ti ti ,y N '\, yN N ,ytitiN N tititi>, tiN N yL yL yL ti'L pec 'ate �e‘2 mac PQc �aJ �>c �� Q�aO heQ O° °� pec �a� �e� �a� P. �aJ ��� ��� p°� �e2 Rx Claims 24 mo Trend 14.3% 502 - Active Employees' Plan Vision Claims (PEPM) Vision Claims 24 mo Trend 0.7% N^- 4; qr sC4' C' 0 q c= 4,,zr os, \40 (:)4, St, ke, yrD 2012 Jan Feb $6 $7 Mar $9 Apr $8 may $8 Jun $1 $7 Aug $6 Sep $2 Oct Nov Dec 502 - Active Employees' Plan $1,600.00 $1,400.00 $1,200.00 $1,000.00 $800.00 -I $600.00 $400.00 $200.00 $0.00 Premium Fundingvs. Expense - Historical (PEPM) - 5 years Vision Claims $6.00 $5.83 $5.21 $6.11 $5.82 Dental Claims $132.82 $133.08 Rx Claims Medical Claims $158.46 $616.22 $176.90 $620.24 $140.85 $168.53 $603.71 $142.51 $159.25 $724.15 SL & Admin Premium $97.36 $1,205.00 $109.36 $1,332.53 $106.64 $1,486.33 Premium Funding does not include interest earnings on reserves. $119.61 $1,489.95 $150.81 $158.42 $666.78 $138.24 $1,201.69 2012 YTD $5.91 $138.53 $167.21 $868.63 $139.86 $1,203.27 Vision Claims Dental Claims Rx Claims Medical Claims SL & Admin Premium 502 - Active Employees' Plan Funding Versus Expenses Actual $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 2007 2008 Projected $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 2009 2010 Funding Actual Expenses 2011 Sep -12 2007 2008 2009 2010 2011 Proj 2012 Proj 2013 Proj 2014 Proj 2015 Funding Expenses Premium Funding does not include interest earnings on reserves. 502 - Active Employees' Plan Total Reserves vs. Reserve Goal Actual $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Cumulative Reserves 2007 7 2008 Reserves $1,725,219 City's Reserve Goal (2.5x) $1,074,532 $2,809,836 $1,190,640 2009 $4,549,442 $1,167,751 2010 $5,708,894 $1,155,647 2011 $6,490,580 $1,076,500 YTD 2012 $6,274,219 $1,638,250 Reserves include interest earnings. 502 - Active Employees' Plan Total Reserves vs. Reserve Goal Projected $7,000,000 $6,000,000 Cumulative Re $5,000,000 $4,000,000 $3,000,000 $2'000,000 ' $0 Reserves } $1'725,219 } $2,809836 2007 2008 2009 2010 2011 _ �—r ,ro YE | ._.-.`. | ._.`... .--.`.`- 2012 | 'n4u/�� | Proj 2014 | '/v]u,�z . . � ,"�� $�54�44l| $5'70\894$6�9O58O$5'639'o�n | $4,7E3,802 $3,293'8261 $2'201/8 $1,167,751 $1,155,647 $1,076,500 $1,638,250 $1,808,250 -City's Reserve Goal (2.5x) $1,074,532 I $1,190,640 } 502 - Active Employees' Plan Reserves include interest earnin LEOFF 1 RETIREE PLAN Acct 503 T:Mdfit;'-',:1,,i,za:-.A.-11t4M331:','AC;477"04>15;.."27Ztiz;;!IZRIs173210a04/;41431*;;;,(:- at4VN.:Ae:*ZrZfAXPM4i,,-;;: -Self-funded: Administration similar to Active Plan. -City also has liability for non-insured Long Term Care (LTC) Expenses and qualified expenses not covered under health insurance contract. As members get older, more likely to incur LTC expenses. -As members turn 65 (and enroll on Medicare), City's liability for health plan covered expenses decreases. Currently 30 out of 37 Medicare eligible. Funding Versus Expenses (LIR) Actual $1,500 $1,000 $500 $0 2007 Projected $1,500 $1,000 $500 $0 2008 2009 2010 Funding Actual Expenses 2011 Sep -12 2007 2008 2009 2010 2011 Proj 2012 Proj 2013 Proj 2014 Proj 2015 Funding Expenses Premium Funding does not include interest earnings on reserves. 503- LEOFF 1 Retirees Plan Reserves - Actual (LIR) 2' $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Cumulative Reserves 2007 2008 2009 2010 2011 E YTD 2012 Reserves $840,700 -Reserve Goal @ 30 %' $129,147 $1,052,969 $111,024 $1,348,761 $97,401 $1,657,049 $83,117 $1,822,186 $91,005 $1,877,102 $89,440 Reserves include interest earnings. 503- LEOFF 1 Retirees Plan Reserves - Projected (LIR $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $ 600,000 $400,000 $200,000 $0 Cumulative Reserves 2007 2008 4 2009 Reserves $840,700 € $1,052,969 $1,348,761 Reserve Goal @ 30% 1 $129,147 ! $111,024 $97,401 Reserves include interest earnings. $1,657,049 $83,117 2011 $1,822,186 $91,005 Proj YE 2012 j Proj 2013 i Proj 2014 $1,896,324 f $1,503,899 $82,800 $88,800 $1,079,610 $94,100 Proj 2015 $1,079,918 $99,700 503- LEOFF 1 Retirees 72 Budqet Work Session October 11, 2012 Page 3 Disaster/Emergency Preparedness After a lengthy discussion, the Council determined that the policy surrounding this particular item is the Council desire to continue providing an active and operational CERT Program. There may have been some confusion resulting from information provided in a previous Budget Work Session wherein it appeared that the viability of the CERT Trainer position for the City was in jeopardy. However, this has been clarified, the position is not in jeopardy, and the Council confirmed their policy position, that it is important and necessary for the City to provide CERT training opportunities and an active CERT program to its residential and business communities. The Council agreed that it is up to the direction of City Administration how this need is achieved in an operational sense. In closing, the Council concurred that they are in favor of sending items relating to the discussion, processing and approval of the 2013 -2014 Biennial Budget directly to Council, rather than proceeding through the Committee process. Additionally, they noted the importance of the Strategic Plan findings in relation to the initiatives discussed above. Request for Information As a result of this Work Session, the Council requested the following: An actuarial report on the City's Self- Insured Heathcare Plan with information from the past couple years, present, and future as appropriate. Information can be presented via the Finance Safety Committee. Provide /present an annual report to Council regarding the accomplishments of the Strategic Plan's Tukwila Neighborhood Outreach Liaison Program. Provide a schedule for Department 20 that lists all transfers. Review and consider the Summary of Municipal Revenue Sources (draft handed out at meeting) at the Finance Safety Committee. Hand -Outs Distributed at Meeting: Re- Calculated Attachment A, per Council Request Summary of Municipal Revenue Sources, Draft Summary by KAM 73 74 COUNCIL AGENDA SYNOPSIS Meetin g Date Prepared by_,,. Ma s review Council review 11/13/12 BG- Resolution Mtg Date Ordinance Mtg Date 11/19/12 BG Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P &R Police PW SPONSOR'S J.A. Brennan Associates is currently the design consultant for Duwamish Gardens. The SUMn -IARY Army Corps of Engineers is requiring a more thorough analysis of the site's historic resources. The cost of this additional work is $91,341.80 and will be covered by the King County Flood Control District grant of $500,000.00. Council is being asked to approve Supplement No. i with J.A. Brennan in the amount of $91,341.80. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/22/12 COMMITTEE CHAIR: KATHY HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. Public Works Department COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $91,341.80 $410,000.00 $0.00 Fund Source: 301 PARKS (PG 65, PROPOSED 2013 CIP) Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 ITEM INFORMATION ITEMNO. 5.C. 75 STAFF SPONSOR: BOB GIBERSON ORIGINAL AGENDA DATE: 11/13/12 AGENDA ITEM TITLE Duwamish Gardens J.A. Brennan Supplemental Agreement No. 1 CATEGORY Discussion Mtg Date 11/13/12 Motion Mtg Date 11/19/12 Resolution Mtg Date Ordinance Mtg Date Bid Award Mtg Date Public Hearing Mtg Date Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P &R Police PW SPONSOR'S J.A. Brennan Associates is currently the design consultant for Duwamish Gardens. The SUMn -IARY Army Corps of Engineers is requiring a more thorough analysis of the site's historic resources. The cost of this additional work is $91,341.80 and will be covered by the King County Flood Control District grant of $500,000.00. Council is being asked to approve Supplement No. i with J.A. Brennan in the amount of $91,341.80. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/22/12 COMMITTEE CHAIR: KATHY HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. Public Works Department COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $91,341.80 $410,000.00 $0.00 Fund Source: 301 PARKS (PG 65, PROPOSED 2013 CIP) Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 11/19/12 MTG. DATE ATTACHMENTS 11/13/12 Informational Memorandum dated 10/19/12 Page 65, Proposed 2013 CIP Supplemental Agreement No. 1 to Contract No. 12 -007 Minutes from the Community Parks Committee meeting of 10/22/12 11/19/12 75 76 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Community Affairs and Parks Committee FROM: Bob Giberson, Public Works Director By: Ryan Larson, Senior Engineer DATE: October 19, 2012 SUBJECT: Duwamish Gardens Project No. 90630102, Contract No. 12 -007 Supplemental Agreement No. 1 ISSUE Approve Supplemental Agreement No. 1 to Contract No. 12 -007 with J. A. Brennan Associates. BACKGROUND In February 2012, the City entered into a consultant agreement with J.A. Brennan Associates for the design of the Duwamish Gardens project. An early task of this agreement was to review the site for evidence of cultural and historic resources. The initial investigation excavated a series of narrow probes throughout the site and the material was sent to a lab for analysis. Several of the samples revealed the presence of organic material which can be an indication for historic resources. DISCUSSION The Army Corps of Engineers reviewed the analysis as part of a future permit and is requiring a more detailed site assessment to further investigate potential impacts to cultural resources. The consultant worked with the Corps and developed a plan to further study the site. This additional analysis will include excavating 16 trenches 3 feet wide by 6 feet deep and of variable lengths. Sediments will be excavated in thin lifts and will be laid out for archaeological inspection and testing. Fiscal Impact This excavation and testing is beyond the initial scope of the consultant's contract and is required prior to developing a final site design and moving the project forward. The cost for this additional item is $91,341.80. The current agreement with J.A. Brennan is $316,066.00 and with this supplement, the new total will be $407,407.80. With the Proposed 2013 CIP, there is $410,000.00 budgeted in design. Additional grant funding is available through King County Flood Control District for $500,000 (presented separately tonight) and this grant allows funding for the additional cultural resources work as well as the demolition of structures and project construction. RECOMMENDATION Approve Supplemental Agreement No. 1 with JA Brennan Associates for additional excavation work in the amount of $91,341.80.00 and consider this item at the November 13, 2012 Committee of the Whole and subsequent November 19, 2012 Regular meetings. Attachments: Page 65, Proposed 2013 CIP Supplemental Agreement No. 1 WAPW Eng \PROJECTSW- DR Projects \Duwamish Gardens 06 -DR02 (90630102) \Design \INFO MEMO Design Supplement 1.docx 77 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2013 to 2018 PROJECT: Duwamish Gardens Project No. 90630102 DESCRIPTION: Purchase and restore site as a salmon estuary and passive park. This project is included in the WRIA 9 Salmon Recovery Plans efforts to acquire and restore 20 -acres JUSTIFICATION: within the Duwamish estuary. Property acquired in late 2008. Design phase began in 2012. Construction scheduled for 2015, grant STATUS: dependent. MAINT. IMPACT: With a new passive park, additional maintenance will be needed. 270 Design funding from State Salmon Recovery Board (SRFB), and King Conservation District (KCD). COMMENT: Acquisition grants included SRFB, WRIA 9 King Conservation District, KC Conservation Futures, WA State Aquatic Lands and WA State Earmark. FINANCIAL Through Estimated tin -cnnn 2n11 2n12 2013 2014 2015 2016 2017 2018 BEYOND TOTAL EXPENSES F Design 30 110 270 410 Land (R/W) 2,116 2,116 Const. Mgmt. 10 250 50 310 Construction 7 70 1,750 750 2,577 TOTAL EXPENSES 2,153 110 350 2,000 800 0 1 0 1 0 1 0 5,413 FUND SOURCES Awarded Grant 2,058 110 350 370 2,888 Proposed Grant 1,500 750 2,250 Mitigation Actual ME G 0 Mitigation Expected 0 City Oper. Revenue 95 0 0 130 50 0 0 0 0 275 TOTAL SOURCES 2,153 110 350 2,000 800 0 0 0 0 5,413 78 2013 2018 Capital Improvement Program 65 F ME G 78 2013 2018 Capital Improvement Program 65 SUPPLEMENTAL AGREEMENT NO.1 to CONSULTANT AGREEMENT NO. 12 -007 THIS SUPPLEMENTAL AGREEMENT is entered into between the City of Tukwila, Washington, herein -after referred to as "the City", and J.A. Brennan Associates, hereinafter referred to as "the Consultant in consideration of the mutual benefits, terms, and conditions hereinafter specified. The City desires to supplement the agreement entered into with the Consultant and executed on February 3, 2012, and identified as Agreement No. 12 -007: All provisions in the basic agreement remain in effect except as expressly modified by this Supplement. The changes to the agreement are described as follows: 1. Scope of Services, is hereby changed to include reimbursement for direct expenses and costs for the development and execution of the Cultural Resources Site Delineation and Geotechnical and Environmental Support services. See Exhibit A, attached with additional scope of services. 2. Payment, is hereby changed to include an additional $91,341.80 for this additional scope of services. The maximum amount payable under this agreement as supplemented inclusive of all fees and other costs shall not exceed $407,407.80 without express written modification of the Agreement signed by the City. See Exhibit B, attached, with additional fees for added scope of work. 3. Time for Performance, is amended to include an additional 120 days for completion of this additional scope of services. The required completion date for all work under this agreement as supplemented is now June 6, 2013. DATED this I I day of 4QC 7t 11—; 2012. CITY OF TUKWILA CONSULTANT By: Jim Haggerton, Mayor J A Printed Name: N Title: I'' 1 tlL1��\, 79 :1 T ito s brenInaln-1 October 16, 2012 associates rr.i.c; Landscape Architects Planners 100 S. King Street, Suite 200, Seattle, WA 98104 t. 206.583 -0620 f 206.583.0623 Exhibit A www.jabtennan.com Scope of Work Additional Services for Cultural Resources Site Delineation and Geotechnical and Environmental Support Duwamish Gardens Prepared For: Ryan Larson, the City of Tukwila Public Works Department Project Description The project involves design and permitting services for the construction of estuarine fish habitat on a 2.16 acre City owed site. A conceptual site plan has been developed by the WDFW and calls for the excavation of 55,000 cubic yards of material to establish approximately 2 acres of shallow water mudflat and marsh habitat and approximately 0.8 acres of uplands planted with native vegetation. This extra services scope of work is to provide an Archaeological Site Delineation as requested by the U.S. Army Corps of Engineers "the Corps the lead consulting agency for compliance with Section 106 of the National Historic Preservation Act "Section 106 This extra services scope also includes additional groundwater monitoring. Task 1 —Administration Administration tasks include meeting coordination, scheduling, contract administration and subconsultant administration costs and expenses. Task 2 Cultural Resources Site Delineation Initial Cultural and Historical Resource Investigations (Task 2.2 of the Contract) has been completed. At a meeting on July 12, 2012, it was determined by the Corps that further investigations and delineation of cultural resources at the site would be required to make a Section 106 determination. Subsequently, ESA Paragon Associates, in collaboration with the Corps and the Muckleshoot Tribe and other stakeholders, prepared a site delineation plan, which proposes a series of trenches and test pits throughout the property to ascertain the extent of cultural resources. See Attachment A for a detail on this scope of services and products. J.A. Brennan Associates will provide client agency coordination, attend a site meeting and review ESA Paragon's Technical Report. Task 3 Geotechnical and Environmental Support Initial Hydrogeologic Assessments (Task 2.3.7 of the Contract) have been completed. Subconsultant, Shannon &Wilson installed vibrating wire piezometers at three locations in order to measure fluctuating groundwater conditions. Data was recorded between June and August, 2012. This additional service request includes additional groundwater monitoring though the winter and spring 2013, when rainier conditions are expected that could provide informative groundwater level data. City of Tukwila Duwamish Gardens Scope of Work See Attachment B for a detail on this scope of services and products. J.A. Brennan Associates will provide client coordination and review of groundwater monitoring data reporting. Assumptions 1. This scope of work does not include data recovery work or work associated with mitigation requirements that may be determined by the Corps. 2. See Attachment A for further assumptions. City of Tukwila Duwamish Gardens Scope of Work FM EERA 5309 Shilshole Avenue NW www.paragoriresearch.net j$CBOCI Suite 200 Seattle, WA 98107 206.789.9658 phone 206.789.9684 fax September 11, 2012 Mike Perfetti J.A. Brennan Associates VIA email (mike @jabrennan.com) Subject: Duwamish Gardens Archaeological Site Delineation Dear Mike: Attached is ESA Paragon's scope of work and cost estimate for the Duwamish Gardens Archaeological Site Delineation for 45 -KI -703. The scope (Attachment A) and cost estimate (Attachment B) have been developed based on the project approach set forth by USACE and the Delineation Plan prepared for the project. The scope is phased to include a program of archaeological trenching (Task 2) with a follow -on program of archaeological test excavations (Task 3). At the completion of Task 2, ESA Paragon will provide an interim memorandum of results (Task 2. 1), and, if requested, participate in an on -site meeting of stakeholders to examine trench exposures (Task 2.2). Initiation of Task 3 will be contingent upon a decision by the City to continue with the project based upon Task 2 results. Please note that if the City determines it is not feasible to continue with the project, we will still need to conduct tasks to document the site and prepare the artifacts for curation. Further, even if we conduct test excavations, it is possible that additional investigations not included in this scope of work may be determined necessary during consultation. Although the cost estimate does not include the curation fees; current pricing for curation at the Burke Museum may be found at http:// www .burkemuseum.org/pub /09curation brochure.pdf Based on the assumptions about collection volume included in the cost proposal curation fees would be expected to be approximately $8,100. Please contact me with any questions about this scope of work and cost proposal. We appreciate the opportunity to participate in the creation of Duwamish Gardens. Sincerely, Chris Lockwood Principal Investigator Northwest Cultural Resources E Paragon Attachment A Scope of Work Duwamish Gardens Site Delineation Project Description: The City of Tukwila is proposing to enhance fish and riparian habitat along the right (north) bank of the Duwamish River, in Tukwila, King County, Washington. Conceptual designs for the project will require removal of existing buildings and structures, excavation, and alteration of vegetation. The USACE has requested site delineation for 45 -KI -703, a precontact archaeological site that extends into the project Permit Area, as well as other archaeological components that may exist within the Permit Area. ESA Paragon has developed a Site Delineation Plan which outlines the procedures to be followed during site delineation activities. Scope of Work: The Scope of Work to be conducted by ESA Paragon includes seven tasks: Task 1. Client and Agency Coordination. Under this task, ESA Paragon will assist in coordinating between City of Tukwila, US Army Corps of Engineers, the design team, DAHP, King County Historic Preservation Program, and the interested tribes. ESA Paragon will also maintain project schedule and budget. Task 2. Archaeological Trenching. ESA Paragon will direct archaeological trenching of 17 trenches to be completed by a City supplied excavator. Trenches will be excavated to a maximum depth of 2 meters (6 feet), and may be internally stepped to provide safe access. ESA Paragon will document trenches using standard archaeological methods. Opportunistic screening (1/8" mesh) and hand sampling may be conducted in areas containing artifacts, features, or other cultural evidence. Task 2.1. Interim Report of Results: ESA Paragon will provide a brief report of Task 2 results within 3 days of completion of Archaeological Trenching. Task 2.2. Stakeholder Site Visit: ESA Paragon will participate in a site visit by stakeholders to examine exposed trenches. Task 3. Test Excavations. If, based on the results of Archaeological Trenching (Task 2), the City of Tukwila opts to proceed with the project, ESA Paragon will then hand excavate up to 10 test excavation units. Units will be 1 m wide by 1 m long, and will extend to 1.3 m below ground surface or 30 cm beyond sterile, whichever is deeper, and may require safety benching. It is expected that test units will be oriented along trenches. Test unit walls will be inspected, photographed, and stratigraphic profiles drawn. All material will be screened through 1/8" mesh. Artifacts and samples will be collected for analysis and curation. Task 4. Artifact Analysis. Functional, typological, and preliminary chronological analysis will be conducted for all artifacts. No specialists will be retained and no samples will be dated. Task 5. Technical Report. ESA Paragon will summarize the findings of our work and recommendations in a comprehensive Technical Report. If Task 3 is conducted, the Technical Report will include the results of this work; otherwise, the Technical Report will only synthesize the Interim Report (Task 2.1) with results of any Artifact Analysis (Task 4). The Technical Report will meet the current SHPO standards for cultural resources assessment including making recommendations for mitigating or minimizing potential adverse effects, if warranted by the results of the field work. ESA Paragon will submit a draft report (PDF format) for review by the Client and selected stakeholders. Once comments are received, ESA Paragon -1 SA Paragon Paragon Attachment A Scope of Work Duwamish Gardens Site Delineation will submit four (4) bound copies and two (2) electronic copies (in PDF format) as the final deliverable. Client will be responsible for distributing the technical report to appropriate stakeholders. Alternatively, if it is determined that data recovery will be conducted as mitigation to enable to project to proceed, the Technical Report would be prepared and structured as a draft chapter for the anticipated Data Recovery report, rather than as a stand -alone report. In this case, no hard copies will be distributed. Task 6. Update Site Form /New Site Form(s). ESA Paragon will complete an archaeological site form update for 45 -KI -703, as required by DAHP. One new archaeological site forms will be completed if historic period components that are not temporally associated with precontact occupation at 45 -KI -703 are encountered during fieldwork. Task 7. Curation Preparation. ESA Paragon will prepare records, photographs, and data for curation, meeting the Burke Museum's curation requirements; ESA Paragon assumes that project records, photographs, and data will not exceed 20 linear inches of curation space. If test excavations are conducted, and artifacts or samples requiring curation are collected, ESA Paragon will prepare artifacts /samples for curation, meeting the Burke Museum's curation requirements; ESA Paragon assumes that the collection will consist of not more 300 unique catalog numbers, and occupy not more than 4 cubic feet. This cost estimate does not include Burke Museum curation fees. Deliverables: ESA Paragon will prepare an Interim Report of Results (Task 2. 1), and draft and final Technical Report (Task 5; see Data Recovery exception above) that meet DAHP standards. ESA Paragon will prepare an archaeological site form update, and up to one (1) new archaeological site /isolate forms, as necessary. ESA Paragon will prepare associated records (and artifacts /samples, if collected) to meet Burke Museum curation standards. Schedule: ESA Paragon will provide a schedule following receipt of a Notice to Proceed. Assumptions: All work will be conducted under the provisions set forth in the Site Delineation Plan. Per the Site Delineation Plan, the focus of this work will be delineation of prehistoric archaeological site 45 -KI -703; one trench will be excavated to investigate a depression near the historic bunkhouse. ESA Paragon will not conduct tasks with aboveground resources under this work order. City will provide excavator and operator (3 days of trenching, plus I day of backfilling at completion of fieldwork); excavator to have 3 -4 foot wide, smooth "ditch" bucket (no teeth), and be capable of excavating to minimum of 2 meters (6 feet) below ground surface. The excavator may be tracked or wheeled, as available. City to furnish all safety posts /markers (e.g., pylons, candlesticks) to mark trenches /test excavations. Trenches may be left open for stakeholder inspection until completion of Task 2 or Task 3, whichever pertains. Archaeological deposits exposed in profiles or floors will be covered with geotextile cloth or similar protective material prior to backfilling; an archaeologist will be present during backfilling. Under Task 2, 17 trenches will be excavated, requiring three (3) days of mechanical trenching. ESA Paragon Attachment A Scope of Work Duwamish Gardens Site Delineation Under Task 3, up to 10 archaeological test units will be excavated. Each test unit may take up to two (2) days to excavate by two (2) archaeologists (4 person days total), including any necessary benching. Task 3 will only be completed if directed by the City following completion of Task 2. Actual costs for Tasks 4 -7 will vary based upon results of Task 2 and Task 3 (if conducted). Under Task 7, cost estimate assumes that project records, photographs, and data will not exceed 20 linear inches, and artifacts /samples will not exceed 300 unique catalog numbers occupying not more than 4 cubic feet. One set of consolidated comments on the draft Technical Report will be provided to ESA Paragon by the Client. Cost Proposal: ESA Paragon has estimated the cost for the Duwamish Gardens Site Delineation based on the hours and rate schedule included in Attachment B. ESA Paragon estimates that the sum of $71,846 will be required to complete Tasks 1 through 7 as described above. Extra services will be initiated by ESA Paragon only after agreement by both ESA Paragon and the Client concerning revisions to the scope of work and additional compensation, if necessary. This scope and cost estimate does not include preparation of a Supplemental Treatment Plan, or conducting data recovery. This scope and cost estimate does not include Burke Museum curation fees. I r At Paragor Budget Proposal Version: 2 Project No.: Project Title: Duwamish Garden Site De neuuov Client: J.A. Brennan Budget Total: $71,846 5309 Shflshote Avenue NW Suite 200 Seattle, WA 98107 206.789.9658 phon 206.789.9684 fax Project Manager: Chris Lockwoo Contract No.: Location: Rate: Principal pxoovamn Historian Archaeologi st Field Technician // Field Technician / GIS Sr. Proj. Admin Proj. Admin. P. Johnson 137.00 Hours C. Lockwood 124.00 Hours K. Wilson 106.00 Hours B. Hoyt 92.00 Hours Breidenthal 74.00 Hours various TBD 63.00 Hours A. Raymond 87.00 Hours S. Bjork 90.00 Hours K. Wade 78.00 Hours Totals Hours Cost Task 1 umm»/Aopncvcnononamon *on 6.00 4o0 14o0 s1.652 Task 2 Archaeological Trenching Task 2.1 interim Report nrResults 4.00 30.00 30.00 3L 64.00 V6.488 4.00 20.00 10.00 2o0 36.00 *4.05* Task 2.2 Site Meeting 4.00 4`00 8.00 *1.044 Task Archaeological Test Units 4.00 20.00 110o0 100o0 200.00 10o0 444.00 $34.018 Task 4 Artifact Analysis 20.00 20.00 40.00 $3,960 Task Technical Report 2o0 10o0 30.00 20.00 10o0 4.00 76u0 $6.716 16o0 Task Site Form Update 1.00 4.00 8.00 29.00 $2.801 60.00 *0.00 100o0 Task cmammFrepan,mon $8,880 Subtotal Hours Task Reimbursable Expenses: 99999 23.00 11*.00 60.00 156.00 150.00 260.00 38.00 4.00 Units 6.00 Rate 811.00 Cost $69,613 Field consumables bags/tarps/plywood/geotextile (not to exceed $750) 1.00 $750,00 $750 $300 Curation supplies and printing 1.00 $300.00 Mileage (1,500 assumed) days 1,500.00 �o,snn $0.00 $833 eanxxovwmpemm, (provided »yoity):o +1 day at end muam'nn 3.00 $n GPS (week �mo rate) 1.00 $350.00 $350 _4 | *2.233 PROJECT TOTAL $71'846 Page 1 of 1 File: EGAPamgon_DuwamishGardene_De|ineodnn.xlsx Alt ARCHAEOLOGICAL TESTING PLAN DUWAMISH GARDENS Prepared by Chris Lockwood, Ph.D., ESA Paragon At the direction of the US Army Corps of Engineers, ESA Paragon has developed this archaeological testing plan for the City of Tukwila's Duwamish Gardens project. Archaeological survey and archaeological monitoring of geotechnical geoprobing suggests that archaeological remains associated with precontact site 45 -KI -703 extend into the Duwamish Gardens Permit Area. The Permit Area also has a lengthy history of use as a farmstead and residence since the 1880s. Archaeological testing is being conducted for the purposes o£ 1) delineating the extent of archaeological remains associated with archeological site 45 -KI -703, and 2) assessing the potential of these remains to address research questions relevant to 45 -KI -703 as set forth by Blukis Onat et al. (2010:33 -36). The testing efforts will also be used to determine if there is a separate historic archaeological site related to the historic farm. FIELD METHODOLOGY Testing will commence with mechanical trenching, followed by excavation of 8 -10 controlled test units; the exact number and location of test units will be determined based upon the results of trenching. Trenching ESA Paragon will direct excavation of 12 -16 backhoe trenches across the Duwamish Gardens Permit Area (Figure 1). Trenches will be 1.5 in wide x 1.5 m deep, and of variable length. Sediments will be excavated in thin lifts, and spoils will be laid out for archaeological inspection. Trench walls will be inspected, photographed, and stratigraphic profiles drawn. Opportunistic screening (1/8" mesh) and hand sampling may be conducted in areas containing artifacts, features, or other cultural evidence. Trenches will be oriented to evaluate the stratigraphy that has developed from the river towards the higher elevation riverbank in order to expose the greatest stratigraphic variability and to provide greater environmental information. Because natural depositional units would be oriented parallel to the river, the trenches will be oriented perpendicular to expose these in cross section. Other trenches will be oriented parallel to the river to test the hypothesis that there is a discernible change in stratigraphy as highlighted in the organic matter testing. One trench will be excavated to specifically investigate the depression in front of the bunkhouse building. Test Units Based on the results of trenching, ESA Paragon will hand excavate 8 -10 test units in locations estimated to have the highest potential to address research questions set forth in Blukis Onat et al. (2010:333 -348). Units will be 1 in wide x 1 m long, and of variable depth. Excavation will be conducted by natural stratigraphic layer; natural stratigraphic layers thicker than 10 cm will be subdivided into arbitrary 10 cm levels. Test units will extend to 1.3 in below ground surface or 30 cm beyond sterile, whichever is deeper, and may require safety benching. Test unit walls will be inspected, photographed, and stratigraphic profiles drawn. All material will be screened through 1/8" mesh; artifacts and samples will be collected for analysis and curation. 45 -KI -703 Testing Plan Page 1 July 2012 -I Figure 1. Proposed Trenching Plan at Duwamish Gardens; note that test unit locations will be determined based on trenching results. EXPECTED DATA CATEGORIES Prehistoric archaeological remains recovered during testing and data recovery at 45 -KI -703 include flaked stone and ground stone tools, animal and fish bones and shell, botanical remains, pollen, fire modified rock, fire features, postmold, depressions /pits, and pebble /rock concentrations. The archaeological site is characterized by organic -rich sand layers. Historic archaeological materials in archaeological deposits may include: food bone from processing and consumption of mammal (including domesticates), avifauna (including domesticates), and fish; manufactured items (e.g., glass, ceramic, metal, wood) associated with domestic life within residences; tools, equipment and /or materials associated with agriculture; and foundations, post molds, pits, privies, oxidized matrices, and other soil stains associated with residential and agricultural use. ARTIFACT AND SAMPLE COLLECTION AND PROCESSING Artifacts encountered during Duwamish Gardens archaeological testing are planned for curation at the Burke Museum of Natural History and Culture in Seattle. Artifacts will be collected and bagged in inert polyethylene 4mil ziptop bags with exact proveniences recorded. Artifacts will be transported to the ESA Paragon archaeological analysis laboratory for description, photography, illustration, and analysis, and prepared for curation. Analyses will be conducted concurrently with fieldwork. All analyses will be completed within 30 days of fieldwork. 45 -KI -703 Testing Plan July 2012 Page 2 •l ANALYTICAL TECHNIQUES Analyses of artifacts and samples collected during archaeological testing at Duwamish Gardens will be conducted for the purpose of assessing the potential to address research domains relevant to 45 -KI -703 as set forth by Blukis Onat et al. (2010:33 -36). If investigations continue into data recovery, additional analyses of materials collected during test excavation may be needed. Lithic Artifacts Lithic artifact classification would include assessment of materials used for stone tools, techniques used to manufacture stone artifacts, and functions of stone tools based on use -wear patterns and traditional formal typologies. Stylistic analyses of projectile points and other temporally sensitive stone tools provide chronological information. (If investigations continue into data recovery, trace element or other sourcing techniques may be used to estimate the source lithic raw materials, and to infer mechanisms that operated in the economic system to obtain raw materials, such as long distance trade). Mammal, Fish, and Bird Bone Bone analysis would include weights and counts (NISP), identification to taxonomic class (e.g., fish, bird, or mammal), assessment of bone breakage and burning patterns to infer processing techniques and post depositional changes. (If investigations continue into data recovery, additional analysis may include identification to lower taxonomic levels and demographic analysis (age /sex) to make inferences regarding seasonality and diet). Shellfish Shellfish analysis would include bulk weights, counts (NISP) and relative abundance of fragments by size class (1 ",'A" and 1/8 (If investigations continue into data recovery, additional analyses may include identification of hinges and spines to lowest possible taxonomic level; measurement of hinge size to estimate variation in sizes of shellfish collected over time; and estimation of hinge /shell weathering). Botanical Remains Botanical analyses would include bulk weights of material, and estimation of relative abundance of wood versus other botanical remains. (If investigations continue into data recovery, additional analyses may include identification of samples to lowest possible taxonomic level, estimation of seasonality, inferences of kinds of activities associates with different botanical materials such as use for fuel, food, or technology, and evidence for post depositional disturbance of archaeological sediments). Perishable Artifacts Perishable artifacts such as basketry or matting may occur in archaeological deposits. Field and laboratory personnel would stabilize, clean, and store perishable materials following standard archaeological procedures. Analysis would include assessment of artifact function. (If investigations continue into data recovery, additional analyses may include identification to lowest possible taxonomic level and estimation of seasonality). Fire Modified Rock Fire modified rock would be analyzed, using a classification system including material type, discoloration, and breakage patterns. Samples of fire modified rock from bulk samples would be classified, measured, weighted and counted. 45 -KI -703 Testing Plan July 2012 Page 3 91 Utilized Bone and Shell A functional classification system will be used to categorize shaped bone and shell artifacts into types that reflect probable uses, uses such as fishing (e.g., fishhooks and harpoons) and woodworking (e.g., chisels and wedges). Sediment Samples Soils data (e.g., soil pH, organic matter content, grain -size distribution, and other attributes) may be used to infer past geomorphic conditions and post depositional processes. Radiocarbon Analysis Samples of charcoal, wood, and /or shell may be analyzed by a professional radiocarbon dating laboratory to provide age determinations for samples in radiocarbon years. AMS radiocarbon dating will be preferred over conventional radiocarbon dating. Samples will not be aggregated as a method for obtaining sample sizes sufficient for radiocarbon dating. Radiocarbon age determinations will be calibrated to correct for temporal variation in atmospheric 14C. If shell samples are submitted for radiocarbon analysis, additional age corrections may be required to account for variation in the carbon content of marine water. Thermoluminescence Analysis Samples of fire modified rock may be analyzed at a specialized archaeological laboratory for thermoluminescence analysis. Age determinations from thermoluminescence analysis may be used to provide independent chronological control to corroborate age determinations from radiocarbon analysis. Historic Ceramics Analyses of ceramics will include assessment of form and function, analysis of style and manufacturing technique, and determination of manufacturer and date of manufacture through seriation and analysis of makers' marks, stamps, or other evidence. Historic Glass Analyses of vessel glass and other "non -flat" glass will include assessment of form and function, analysis of style and manufacturing technique, and determination of manufacturer and date of manufacture through seriation and analysis of makers' marks, stamps, or other evidence. "Flat" or window glass will be characterized (modern or historic), recorded, dimensions (area and thickness) recorded with an estimate of panes, but not further analyzed. If possible we will correlate the flat glass with a specific building. Historic Metal Analyses of metal artifacts will include assessment of form and function, analysis of style and manufacturing technique, and determination of manufacturer and date of manufacture through seriation and analysis of makers' marks, stamps, or other evidence. Other Historic Artifacts Other types of historic artifacts will be analyzed using generally- accepted methods as appropriate. CURATION Artifacts collected during archaeological test excavations at Duwamish Gardens will be curated at the 45 -KI -703 Testing Plan July 2012 Page 4 92 Burke Museum of Natural History and Culture, in Seattle, WA, which has agreed to act as repository for collections, records, photographs and data from the Duwamish Gardens project. The collections from 2005 excavations at 45 -KI -703 are curated at the Burke. Collections will be curated to meet the Burke's Curation Guidelines. RESEARCH DESIGN Archaeological testing is being conducted to determine the extent, nature, and age archaeological remains at Duwamish Gardens for the purpose of assessing whether deposits have the potential to address and provide new information regarding the following research domains previously developed by Blukis Onat et al. (2010:33 -36; see scanned attachment) for 45 -KI -703: Research Domain 1: Site Formation Processes Research Domain 2: Resource Specialization Research Domain 3: Environmental Enhancement and Settlement System Development Research Domain 4: Artifact Types and Distributions, Trade, and Regional Contacts Research Domain 5: Ethnographic Correspondence Because the Duwamish Gardens archaeological testing will be conducted in proximity to historic agricultural and residential areas where there is the potential to encounter historic archaeological remains, and because no historic research domain was developed previously, it is anticipated that an additional research domain related to historic landuse will be developed, and archaeological testing results evaluated against this additional research domain. However, we expect that any historic archaeological remains will be recorded as a separate site. REPORTING Reporting will occur after analysis of fieldwork has been completed. A summary technical report will present all data from the archaeological testing, evaluate the potential for additional archeological deposits and their ability to address the various relevant research domains. A site form update for 45 -KI- 703 would be prepared and included as an appendix to the report. If a historic site is identified it will be recorded as well. REFERENCES Blukis Onat, Astrida, Philippe D. LeTourneau, and Timothy L. Cowan 2010 3. Research Design and Data Recovery Investigation Methods. In The Duwamish River Bend Site Data Recovery at 45 -KI- -703, edited by Astrida Blukis Onat, pp.31 -50. Prepared by BOAS, Inc., Seattle. Submitted to Sound Transit. On file, ESA Paragon, Seattle. 45 -KI -703 Testing Plan July 2012 Page 5 93 45KI703 DATA RECOVERY REPORT Data recovery excavations at 45KI703 addressed research domains outlined in the ARMT Blukis Onat et al. 2004:53 -55). Research questions were adapted for the Supplemental Treatment Plan (LeTourneau and Blukis Onat 2004b) (Appendix B). The five prehistoric research domains considered: (1) environmental adaptation and landform use; (2) resource specialization; (3) environmental enhancement and settlement system development; (4) artifact types and distributions, trade and regional contacts; and (5) ethnographic correspondence. The research questions that were part of the data recovery plan at site 45KI703 are itemized below in the context of the five research domains. The complete text is provided in LeTourneau and Blukis Onat 2004b (Appendix B). Within each research domain, the questions are grouped by topic. Not all questions listed could be addressed at 45KI703, nor are they exhaustive. They are suggestions of topics that might be addressed at the site, not predictors of what would be found. Research questions that arose in the course of investigations are presented and discussed in SECTION 15. 3.2.1. Environmental Adaptation and Landform Use Site Formation Processes at 45KI703 1. How have geological processes impacted the landform on which site 45KI703 is located? 2. What evidence of flood deposits is present at 45KI703? 3. What is the substrate on which site 45KI703 was established? 4. What evidence is present to indicate that geological processes caused site 45KI703 to be abandoned? 5. How did geological processes influence site occupation? Site Formation Processes at Other Sites in the Region 1. How do the cultural changes and environmental circumstances at 45KI703 compare with those at other sites in the region? 2. What evidence for change in regional prehistoric cultural systems can be derived from the site? 3. What are the similarities and differences between site 45KI703 and Allentown (45KI431)? Impact of Tectonics on site 45KI703 1. What kinds of evidence are present testifying to the impact of earthquakes on peoples and settlements? 2. What was the impact of the uplift associated with the magnitude 7 earthquake that shook the region ca. 1000 -1100 BP? 3. If the Duwamish River floodplain was uplifted, what were the resulting changes to local drainage patterns, erosion and deposition processes, vegetation types, and emergent terrestrial surfaces? 4. How did these changes impact people and settlements? 5. What evidence is there for other tectonic events at 45KI703? What kinds of events are represented at the site? 6. How did tectonic events affect site 45KI703? 33 45KI703 DATA RECOVERY REPORT Resource Specialization Ethnographic Model for 45KI703 Resources and Features 1. Is the currently used ethnographic model of hunters, gatherers, and fishers appropriate for interpreting cultures in the site region? 2. What other models can be developed from ethnographic resources that better integrate archaeological data and the basic elements of Pacific Northwest culture? 3. It appears there may be a structural feature at site 45KI703. Does the feature represent a house? 4. If a house, is the excavation inside or outside the dwelling? 5. Does the house appear to be permanent or temporary? 6. What is the evidence for duration of occupation? Intensity of occupation? Ethnographic Modeling at Other Sites in the Region 1. What kinds of archaeological sites are associated directly with the Tukwila Formation and the floodplain promontories associated with the Duwamish Epic of the Winds? 2. The Allentown site (45KI431) has been defined as a fishing camp. Is site 45KI703 a fishing camp also? 3. What other interpretations can be derived from materials at site 45KI703? 4. Would these possibly warrant revisions to the interpretations of site 45KI431? Invertebrates at 45KI703 1. What is the nature of evidence for pre -2000 BP shell midden sites in the region? Are there shell midden sites in the region along ancient channels of the Duwamish River that have been covered by alluvial or estuarine deposits? 2. How old is site 45KI703? 3. How much shell is present at site 45KI703? 4. What is the evidence that site 45KI703 is a degraded shell midden? 5. Is shell preservation at 45KI703 a factor of shell abundance or a factor of soil conditions? 6. There is greater abundance of shell at the Duwamish No. 1 site; how else is site 45KI703 different from it? 7. How are these two sites similar? Vertebrates at 45KI703 1. How did fishing technology at the site change through time? 2. What are the regional differences in access to various fish species? 3. What are the changes through time in species utilized? 4. What is the evidence of differential access to marine, anadromous, and fresh -water species at sites in various geographic locations? 5. What is the evidence for fishing at site 45KI703? 6. Is there evidence of change in fishing over time? 7. Are different fish species represented at different times? 8. Is there a relationship between fish species represented and evidence for landform alterations? M '1 45KI703 DATA RECOVERY REPORT 3.2.3. Environmental Enhancement and Settlement System Development Site Chronology and Site Function 1. Is there evidence at the site for the chronological sequence of Duwamish River delta progradation? 2. Where was the mouth of the Duwamish River at the time of site occupation? 3. Is there a chronological sequence of occupation and sediment deposits at 45KI703, or is the site the result of a single use event? 4. What is the evidence in the stratigraphic sequence at site 45KI703 for habitat alterations during the time the site was occupied? 5. Where was site 45KI703 in relation to delta and tidal marsh? Subsistence and Settlement at 45KI703 and Other Sites in the Region 1. What evidence is present for changing subsistence /settlement patterns? 2. How can such changes be linked to region -wide shifts in subsistence organization and settlement type? When did the changes occur? 3. What is the degree of bone and shell preservation? 4. How do the bone and shell add to evidence from tools to determine subsistence patters? 5. What is the evidence for changes in subsistence patterns? When did the changes occur? 6. How are these changes reflected in nearby sites (45KI431 and Duwamish No. 1)? 3.2.4. Artifact Types and Distributions, Trade, and Regional Contacts Lithic Technology 1. What differences are evident from site to site with respect to technological organization? 2. Are there differences in technological organization in the lower Duwamish River valley based on environments (e.g., littoral or riverine settings)? 3. What is the evidence for technological organization of lithic artifacts at the site? 4. What kind of information on technological organization can be derived from relationships between artifacts and features? 5. How does the technological organization at 45KI703 compare with that at other nearby sites (45KI431 and Duwamish No. 1)? 6. Where do the lithic materials present in the site come from? 3.2.5. Ethnographic Correspondence Site 45KI703 and Epic of the Winds 1. Site 45KI703 is adjacent to one of the Tukwila Formation promontories associated with the Duwamish Epic of the Winds. What was the nature of Duwamish use of the hills located at South Boeing Access Road? 2. Were these culturally important places actually occupied? 3. What kinds of activities took place at these locations? 4. Are fragments of the Tukwila Formation present at 45KI703? 5. If so, can these be considered evidence for an association between site 45KI703 and the Epic of the Winds promontories? 35 M 45KI703 DATA RECOVERY REPORT Settlement Interdependence 1. Did Duwamish villages participate in an interdependent economic system where each village's ecological or economic strengths resulted in a surplus that was traded to other villages? 2. How did downstream villages interact with those upriver? 3. Did the trade networks linking Duwamish River villages also extend to other parts of Puget Sound or to eastern Washington? 4. What evidence is there that the practices evident at 45KI703 are also described in the ethnographic record of Duwamish people? 5. Is there oral history evidence that can explain features and artifacts found in the site? 3.3. Data Recovery Management and Methods Fieldwork safety and security, archaeological excavation strategies, and laboratory processing methods for data recovery investigations at site 45KI703 are detailed herein. The methods used were based on those that had been proposed (LeTourneau and Blukis Onat 2004b) (Appendix B). Divergence from these methods was limited and resulted from field conditions that could not have been anticipated. They are noted in the following discussion. Procedures for specific analyses are included in separate SECTIONS that describe the respective analysis results and in specialist appendices. Overall staffing for data recovery investigations has been detailed in SECTION 1. The more specific responsibilities assigned to different persons are indicated in the following. 3.3.1. Fieldwork Safety and Security During the data recovery field excavations, the archaeological crew followed standard OSHA safety regulations. Lucy F. Zuccotti acted as BOAS safety officer. All Field Archaeologists and supervisory staff wore safety vests as a preventive measure due to vehicular traffic on a nearby driveway. Hard hats were worn when construction took place near the archaeological excavations. For site safety and security, the investigation area was surrounded with chain -link fencing (Figure 15 -d and Figure 17). The fence had a movable gate that was locked at night. Some crew members lived at the Ray- Carrossino Farmhouse and provided informal site security during non- working hours. Sound Transit assigned security guards to patrol the area during times when archaeological work was not taking place. Access to the investigation area was restricted to BOAS excavation personnel and occasional visiting professional archaeologists and tribal representatives. Substantial wooden stairs were built into the north and south walls of the excavation area to provide safe, low- impact access (Figure 17 and Figure 18). Designated walking routes within the area of investigations minimized impact by excavation personnel. 36 97 SHANNON 6WIL ON, INC. GEOTECNNICAL AND ENVIRONMENTAL CONSULTANTS August 15, 2012 Mr. Mike Perfetti J.A. Brennan Associates PLLC 100 S. King Street, Suite 200 Seattle, WA 98104 RE: DUWAMISH GARDENS CONTAMINATED MEDIA STUDIES AND OTHER COST OVERAGES SUMMARY Dear Mr. Perfetti: Shannon Wilson (S &W) is submitting this letter to communicate recent cost overages related to geotechnical borings and contaminated soils testing and laboratory analysis that are being incurred on the Duwamish Gardens project. In addition, we understand additional work may be performed on the project for cultural and archaeological studies, for which we recommend including time for S &W environmental staff to provide observations during testing. We also feel that extending the groundwater monitoring efforts would provide additional insight to project design, and benefit the project. I have summarized our cost overages and recommended proposed additional work below. TASK 2.3.A GEOTECHNICAL INVESTIGATIONS (ADDITIONAL GROUNDWATER MONITORING) The groundwater monitoring period specified in the scope includes a 2 -month monitoring period, which occurred during mid -June through mid August 2012. Our current plan is to decommission G 400 N0 i I i 34 v,_. k.(i i S ly. 1�,•.% P") BOX 300303 206 7 fives i`�l 1 6J: }-6i 1'r 'D0 1 800 833-6388 Vvvv"A iit ifl'J iV`11�`. CiI'i.f! f' 21 -1- 12368 -024 M Mr. Mike Perfetti J.A. Brennan Associates PLLC August 14, 2012 Page 2 of 4 the data loggers next week (August 20, 2012). We recommend extending the groundwater monitoring through winter and spring 2013. There are numerous reasons for extending the groundwater monitoring: Winter flood and high tide maximum groundwater elevations can be documented for geotechnical and slope stability design. The variability in daily fluctuations, related to bank stability, can be observed over the fall /winter flood and spring runoff periods. Groundwater elevations measured in B -1 are directly linked to the Green River surface water elevations. Measurement of this information can be used for finalizing design elevations for winter and spring juvenile Chinook migration periods. Currently, surface water elevations are being approximated using the Lower Green River HEC- RAS model. The estimated cost to continue monitoring through May 2013 is $5,000, including monitoring equipment rental extensions or purchases, three quarterly data downloads, report updates and distribution of data, and administration of the work. 2 1- 1- 12368- 024 -1.1. doexlwpilkn 21 -1- 12368 -024 -.3,._ !f� 2 1- 1- 12368- 024 -1.1. doexlwpilkn 21 -1- 12368 -024 Mr. Mike Perfetti J.A. Brennan Associates PLLC August 14, 2012 Page 3 of 4 IMF ®�y -gw.. dpi ist ��ati •ems r �i•s --I� TASK 2.2 CULTURAL AND HISTORICAL RESOURCE INVESTIGATIONS We have been diligently coordinating with J.A. Brennan and Paragon (ESA Adolfson) on cultural and archaeological resource investigations. The expansion of the cultural resource investigations has required additional time on behalf of S &W staff in support of the studies. We have provided review of the proposed testing program; are recommending site visits during testing; and have provided comment on potential geologic, sedimentation, and anthropomorphic history that may provide insight to the site characterization. We would like to request additional funding to continue supporting J.A. Brennan, Paragon, and the City of Tukwila on this matter. Our proposed budget is as follows: Coordination and review time 2 hours Principal -in- Charge /Vice President, 2 hours Associate, and 2 hours Principal Engineer $1,000. On -site assistance 16 hours Principal Engineer for on -site assistance and 2 days of travel and 2 hours Associate for administration and contract management for $2,177. I r w R. 1 A P a 'RE 'M a::K NQUH 21 -1- 12368- 024- L1.docv %wp /Ikn 21 -1- 12368 -024 1 1 Mr. Mike Perfetti J.A. Brennan Associates PLLC August 14, 2012 Page 4 of 4 CLOSING In summary, S &W is requesting proposing a project cost modification to our contract as follows: Task 2.2 Cultural and Historical Resources Investigations $3,177 e ves Tel; .3 teel�niea 1- -r�,g:-t: everag Task 2.3.A Geotechnical Investigations (extend GW monitoring) 5,000 efa o Total Request $15,463 We understand that the project is limited to funding by the City and grant limits and timelines. However, we do feel that changes in the project schedule, cultural resources conditions, additional costs to complete soils testing, and the opportunity for extending groundwater monitoring are justifiable requests to the City. Please let me know if you have any questions regarding this letter. Sincerely, SHANNON WILSON, INC. if a David R. Cline, P.E. Associate DRC /dre 21 -1 -12368 -024 -L 1.doex/wpAn 21 -1 -12368 -024 101 exhibit b ja brennan associates duwamish gardens design additional services administration coordination cultural resources site delineation geotechnical and environmental support 1 �y\ City of Tukwila Community Affairs and Parks Committee COMMUNITY AFFAIRS AND PARKS COMMITTEE Meeting Minutes October 22, 2012 5: 00 p.m. PRESENT Councilmembers: Kathy Hougardy, Chair; Joe Duffle and Verna Seal (sitting in for Allan Ekberg) Staff Rick Still, Bob Giberson, Gail Labanara, Ryan Larson and Kimberly Matej Guests: Chuck Parrish CALL TO ORDER: Committee Chair Hougardy called the meeting to order at 5:05 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Parks Recreation Events Calendar As an information only item, Committee Members reviewed the Parks Recreation calendar through the end of the year. INFORMATION ONLY. B. Duwamish Gardens: Grant Agreement Staff is seeking Council approval to enter into a grant agreement with King County Flood Control District to be awarded $500,000 in grant funding for possible structure demolition, site construction, and a Culture/Historic Investigation Plan related to the Duwamish Gardens site. Application for this grant funding was originally made through King Conservation District (KCD) and the Recreation and Conservation Office; however, KCD funding was put on hold due to an ongoing court case regarding their property assessment. KCD in turn, asked the King County Flood Control District if they would be able to provide grant funding for programs related to habitat and water quality. KCD agreed and the grant funds will now be administered through the Flood Control District. There is no required City match. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 5 CONSENT AGENDA. C. Duwamish Gardens: Supplemental Agreement No. 1 Staff is seeking Council approval of Supplemental Agreement No. 1 with J.A. Brennan Associates for an additional detailed site assessment of impacts to cultural resources (additional excavation) at the Duwamish Gardens site in the amount of $91,341.80. The Army Corps of Engineers is requiring this additional assessment for the area based on preliminary cultural work which suggested the presence of organic material. Specifically, the supplemental agreement will include excavation of 16 trenches that are three feet wide by six feet deep and variable lengths. The grant funding from Item B above can be utilized to fund this additional work. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13 COW. III. MISCELLANEOUS Meeting adjourned at 5:17 p.m. Next meeting: Tuesday, November 13, 2012 5:00 p.m. Conference Room 43 Committee Chair Approval Minu by A54M. "Tuesday Meeting due to Holiday 103 1A COUNCIL AGENDA SYNOPSIS Initial Meetin Date Prepared by Ma r'r rev' w Co nJI review 11/13/12 BG Resolution Mtg Date Ordinance Mtg Date 11/19/12 B ❑Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P&R Police PW SPONSOR'S Carollo Engineers were hired as the consultant for the Water and Sewer Comprehensive SUMMARY Plans in 2010. Due to additional requirements on the Water Comprehensive Plan, Supplement No. 3 with Carollo is required to add to the scope of work. Additional water funds will come from the Interurban Water Reuse and Andover Park E Water Line. Council is being asked to approve Supplement No. 3 with Carollo Engineers in the amount of $16,250.00. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/23/12 COMMITTEE CHAIR: DENNIS ROBERTSON RECOMMENDATIONS: SPONSOR /ADMIN. Public Works Department COMMITTEE Majority Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $16,250.00 $344,000.00 $0.00 Fund Source: 401 WATER FUND Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 ITEM INFORMATION ITEMNO. 5.D. 105 STAFF SPONSOR: BOB GIBERSON ORIGINAL AGENDA DATE: 11/13/12 AGENDA ITEM TITLE Water and Sewer Comprehensive Plans Consultant Supplemental Agreement No. 3 with Carollo Engineers CATEGORY Discussion Mtg Date 11/13/12 Motion Mt g Date 11/19/12 Resolution Mtg Date Ordinance Mtg Date Bid Award Mtg Date Public Hearing Mtg Date ❑Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P&R Police PW SPONSOR'S Carollo Engineers were hired as the consultant for the Water and Sewer Comprehensive SUMMARY Plans in 2010. Due to additional requirements on the Water Comprehensive Plan, Supplement No. 3 with Carollo is required to add to the scope of work. Additional water funds will come from the Interurban Water Reuse and Andover Park E Water Line. Council is being asked to approve Supplement No. 3 with Carollo Engineers in the amount of $16,250.00. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/23/12 COMMITTEE CHAIR: DENNIS ROBERTSON RECOMMENDATIONS: SPONSOR /ADMIN. Public Works Department COMMITTEE Majority Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $16,250.00 $344,000.00 $0.00 Fund Source: 401 WATER FUND Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 11/19/12 MTG. DATE ATTACHMENTS 11/13/12 Informational Memorandum dated 10/19/12 Supplement No. 3 to Contract No. 10 -055 Minutes from the Utilities Committee meeting of 10/23/12 11/19/12 105 1. City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Utilities Committee Q� FROM: Bob Giberson Public Works Directorl BY: Mike Cusick, PE, Senior Engineer DATE: October 19, 2012 SUBJECT: Water and Sewer Comprehensive Plans Project No. 91040101, Contract No. 10 -055 Supplemental Agreement No. 3 ISSUE Approve Supplemental Agreement No. 3 with Carollo Engineers to revise the Comprehensive Water Plan. BACKGROUND In 2010 the City contracted with Carollo Engineers to update the Water Comprehensive Plan. DISCUSSION For the 2005 Comprehensive Water Plan, the Washington State Department of Health (DOH) required no additional storage of water in lieu of the existing 2 million gallon reservoir and multiple taps off Seattle pipelines. In 2009, DOH guidelines were revised to require standby storage of water at 200 gallons per equivalent residential unit (ERU). With the 2009 DOH storage guidelines, the existing Tukwila 2 million gallon reservoir is now undersized for the current population of the city. With the projected 2030 population growth model provided by the Tukwila Department of Community Development (DCD), the condition worsens. Initially, Carollo Engineers used the 2010 -2030 population data study from Puget Sound Regional Council (PSRC), as provided by DCD, to determine the required reservoir size to meet the revised requirements from DOH. Using the PSRC 2030 population model, the City of Tukwila would be required to construct a new reservoir to bring the City's total water storage to 7.1 million gallons with a design and construction cost for the proposed reservoir at over $5.5 million dollars. This cost estimate does not include the cost of land acquisition for the reservoir and a necessary pump station. The total cost of the project could be over $10 million dollars for the reservoir, pump station, and land. With the high cost of the required water reservoir and other water CIP improvements, Public Works questioned DCD on the projected 2030 population growth model for the City. It was agreed that the 2030 PSRC model used for population forecasting overstates projected growth within the City. For the Comprehensive Water Plan, DCD agreed to cut the projected growth in half by changing the time period from 2010 -2030 to 2010 -2040. With a reduced population growth, the total reservoir requirement of 7.1 million gallons can be reduced to 4 to 5 million gallons of total storage. The reduction in reservoir size results in savings to the City of several million dollars in costs to the Water Fund. Carollo Engineers additional work will modify the Water Comprehensive Plan. The supplement will focus on updating the revised growth projections with the new 2012 data 107 Info Memo Page 2 Carollo Engineers Supplement No. 3 developed by DCD. The reduced growth projections will be used to calculate new average and maximum day water demand for future planning scenarios. The new demand will be updated in the supply analysis, hydraulic modeling analysis, and storage analysis. The system will be evaluated to determine the deficiencies and proposed improvements needed with the new demand in each service area. It is anticipated that this will also modify the proposed improvements in the CIP and this new data will modify most sections of the Water Comp Plan. FINANCIAL IMPACT Supplemental Agreement No. 3 will increase the consultant's scope of work for Task 300 Planning Considerations for $16,250.00. Funding for the additional work will come from the Interurban Water Reuse Project, page 86 of the 2012 CIP at $25,000.00 and Andover Park West Water Line Project for $16,000.00, which will now be constructed in 2013. EXPENDITURES Funding Budget Original contract $291,000.00 Water Comp Plan $160,000.00 Supplement No. 1 12,662.00 Sewer Comp Plan 143,000.00 Supplement No. 2 21,721.50 Interurban Water Reuse 25,000.00 Supplement No. 3 16.250.00 APE Water Line 16.000.00 Total $341,633.50 $344,000.00 RECOMMENDATION Approve Supplemental Agreement No. 3 to Contract No. 10 -055 with Carollo Engineers for $16,250.00 to update population growth projects for the Comprehensive Water Plan and consider this item at the November 13, 2012 Committee of the Whole and subsequent November 19, 2012 Regular Meeting. Attachment: Supplemental Agreement No. 3 108 W: \PW Eng \PROJECTS\A- WT Projects \Water Comprehensive Plan -Water (91040101) \Info Memo Carrollo Sup #3 10- 16- 12.docx SUPPLEMENTAL AGREEMENT NUMBER 3 to CONSULTANT AGREEMENT NUMBER 10 -055 C G� THIS SUPPLEMENTAL AGREEMENT is entered into between the City of Tukwila, Washington, herein -after referred to as "the City," and Carollo Engineers hereinafter referred to as "the Consultant in consideration of the mutual benefits, terms, and conditions hereinafter specified. The City desires to supplement the agreement entered into with the Consultant and executed on, May 19, 2010, and identified as Agreement No. 10 -055. All provisions in the basic agreement remain in effect except as expressly modified by this supplement. The changes to the agreement are described as follows: 1. Scope of Services, for Supplemental Agreement #3 to the Comprehensive Sewer and Water Plans (Plans) for the City of Tukwila. The purpose of this supplement is to add: The following work effort is a modification to the Comprehensive Plan (Plan) for the City of Tukwila. The update will be focused on updating the revised growth projections with the new 2012 data developed by the Planning Department. The growth projections will be used to calculate new average and maximum day water demand for the future planning scenarios. The new demand will be updated in the supply analysis, hydraulic modeling analysis and the storage analysis. The system will be evaluated to determine the deficiencies and proposed improvements needed with the new demand in each service area. It is anticipated that this will also modify the proposed improvements in the CIP. This new data will modify most sections of the Plan. 2. Deliverables, Carollo will prepare a revised Executive Summary and Chapters 2, 3, 5, 6, 7 that summarizes the new future demand, analysis and recommended improvements. 3. Time for Performance, is amended to change the number of calendar days for completion of the work to read an additional 90 days for a total of 1,070 days. 4. Payment, shall be amended as follows: Payment for the work provided by the Consultant as part of this supplement shall be made for an additional $16,250.00. The total amount for the Consultant for this contact shall not exceed $341,633.50 without express written modification of the Agreement signed by the City. DATED this CITY OF TUKWILA day of 1 2012. Jim Haggerton, Mayor CONSULT�ANT Lara Kammereck, Associate Vice President 5, CIA2 /c�,U� L S pw: \Carollo\Documents\ Client \WA \Tukwila \8472A00\Project Management \Contracts \Carollo Supplemental Agrmnt 3.docx 109 Utilities Committee Minutes October 23, 2012 Page 2 C. Supplemental Agreement No. 3: Water Comprehensiv Plan Staff is seeking Council approval for Supplemental Agreement No. 3 with Carollo Engineers for the updating of revised growth projections from 2012 data for the Water Comprehensive Plan in the amount of $16,250. The updated projections will be utilized to calculate future water demand and planning scenarios. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13 COW FOR DISUCSSION. D. Surface Water Comprehensive Plan Due to time constraints, continued discussion and review of the Surface Water Comprehensive Plan will be delayed to a future Utilities Committee meeting. RESCHEDULE FOR FUTURE COMMITTEE MEETING. III. MISCELLANEOUS Meeting adjourned at 6:25 p.m. Next meeting: Next meeting: Wednesday, November 14, 2012 5:00 p.m. Conf. Room No. 1. *11'ecbnesday clue to holiday. OK I Committee Chair Approval Minutes by KOM. Reviewed by GL. G COUNCIL AGENDA SYNOPSIS Initials Meetin Date Prepared b Ma or's review Coul4cil review 11/13/12 BG E Resolution Mtg Date 11/19/12 Ordinance Mtg Date 11/19/12 BG Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P &R Police E PW SPONSOR'S The City's water, sewer, and surface water rates need to be increased to meet operational SUMMARY and capital expenditures. The single and multi family minimum water meter charge will increase from $12.00 to $14.00 and multi family consumption charges will increase to $2.92/$4.08. The sewer fund's monthly residential flat rate will increase from $19.26 to $23.10 and King County will increase their sewer fees in 2013 from $36.10 to $39.79. The surface water fees will increase from $102.00 to $107.00 for residential parcels. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte E Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/23/12 COMMITTEE CHAIR: DENNIS ROBERTSON RECOMMENDATIONS: SPONSOR /ADMIN. Public Works Department Commi=E Majority Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: 401 WATER, 402 SEWER, AND 412 SURFACE WATER Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 ITEM INFORMATION ITEM NO. 5.E. 111 STAFF SPONSOR: BOB GIBERSON ORIGINAL AGENDA DATE: 11/13/12 AGENDA ITEM TITLE Resolution updating the Public Works Fee Schedule for the 2013 Water, Sewer, and Surface Water Rates CATEGORY E Discussion Mt Date 11/13/12 Motion Mtg Date E Resolution Mtg Date 11/19/12 Ordinance Mtg Date Bid Award Mtg Date Public Hearing Mtg Date Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P &R Police E PW SPONSOR'S The City's water, sewer, and surface water rates need to be increased to meet operational SUMMARY and capital expenditures. The single and multi family minimum water meter charge will increase from $12.00 to $14.00 and multi family consumption charges will increase to $2.92/$4.08. The sewer fund's monthly residential flat rate will increase from $19.26 to $23.10 and King County will increase their sewer fees in 2013 from $36.10 to $39.79. The surface water fees will increase from $102.00 to $107.00 for residential parcels. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte E Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/23/12 COMMITTEE CHAIR: DENNIS ROBERTSON RECOMMENDATIONS: SPONSOR /ADMIN. Public Works Department Commi=E Majority Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: 401 WATER, 402 SEWER, AND 412 SURFACE WATER Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 11/19/12 MTG. DATE ATTACHMENTS 11/13/12 Informational Memorandum dated 10/19/12 Exhibits A, B and C Draft Resolution Public Works Fee Schedule Attachments D, E and F Seattle Times Water Rate article dated 10/12/12 Minutes from the Utilities Committee meeting of 10/23/12 11/19/12 111 MVA City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM To: Mayor Haggerton UTILITIES COMMITTEE From: Bob Giberson, Public Works Director fA By: Gail Labanara, Public Works Analyst Date: October 19, 2012 Subject: Water, Sewer. and Surface Water Rates for 2013 ISSUE Adopt 2013 water, sewer, and surface water rate increases. WATER Public Works has analyzed the needs of the water enterprise fund. Cascade Water Alliance's (CWA) wholesale water rates are projected to increase 6.2% for 2013. A rate increase on the minimum water meter charge (see Table 1) is being proposed for residential and multi family customers to maintain the current level of service and lessen the impact of future increases for purchased water. Increases are also proposed for consumption charges for multi family and commercial /industrial rates. Exhibit A is a rate matrix of all of the proposed utility rate increases for residential customers. Exhibit C -1 shows a comparison of adjoining cities and their water rates. Exhibit D is the Resolution which updates the Public Works Fee Schedule. SEWER King County Ordinance No. 17343 has a 10.22% sewer rate increase for King County sewage disposal fees in 2013. The sewer rate will increase from $36.10 to $39.79 per residential customer equivalent per month. The King County sewage treatment capacity charge (for any new sewer connections) will increase from the current $51.95 to $53.50 per month for fifteen years for any sewer connection occurring between January 1, 2013 and December 31, 2013. Exhibit B is King County Ordinance No. 17343. Tukwila's sewer base rate is scheduled for an increase (see Table 2) in accordance with the rate model which analyzes the City's operational and capital needs. The City's sewer rate will increase from $19.26 to $23.10 per residential connection and from $33.74 to $40.48 for up to 750 cubic feet or fraction thereof for commercial /industrial customers. Exhibit C -1 shows a comparison of adjoining cities and their sewer rates. SURFACE WATER Tukwila's surface water base rate is scheduled for an increase in 2013. The City's surface water rate will increase from $102.00 to $107.00 per residential parcel, per year and will range from $12.92 to $108.04 per 4,356 square foot for all other parcels. Exhibit C -2 shows a comparison with other cities and their surface water rates. 113 INFORMATIONAL MEMO Page 2 TABLE 1 WATER RATES PROPOSED FOR 2013 CATEGORY Current 2012 Charges Proposed for 2013 Single Family $12.00 7F $14.00 Multi Family (each condo, apt, or dwelling unit) $12.00 $14.00 Multi Family Consumption Charges per 1 CCF $2.79 $3.89 $2.92 $4.08 Commercial /Industrial Consumption per 1 CCF $3.62 $4.98 $3.98 $5.46 TABLE 2 SEWER RATES PROPOSED FOR 2013 CATEGORY Current 2012 Rates Proposed for 2013 Residential Sewer Service Flat rate of $19.26 Flat rate of $23.10 (single dwelling unit) per month per month Residential Sewer Service Flat rate of $19.26 per Flat rate of $23.10 per (multiple dwelling unit, permanent type) month for each dwelling unit month for each dwelling unit Flat rate of $33.74 Flat rate of $40.48 Commercial /Industrial Sewer per month and, any usage per month and, any usage Service over 750 cubic feet of water over 750 cubic feet of water per month shall be at the rate per month shall be at the rate of $33.74 per 750 cf of $40.48 per 750 cf RECOMMENDATION The Council is being asked to adopt the City's 2013 water, sewer, and surface water proposed rate increases in accordance with the Public Works Fee Schedule Resolution and consider this item at the November 13, 2012 Committee of the Whole Meeting and subsequent November 19, 2012 Regular Meeting. Attachments: Exhibit A Rate Matrix Exhibit B King County Ordinance No. 17343 for 2013 Exhibit C -1 C -2 Comparison of Rates with Adjoining Cities Exhibit D Public Works Fee Schedule Resolution Attachment D Water Attachment E Sewer Attachment F Surface Water Seattle Times Water Rate article dated October 12, 2012 114 WAPW Eng \OTHER \Gail Labanara \Water Sewer Documents \Info Memo Water Sewer SWM Rates 10- 19- 12.docx proposed utility rate increases with 10% utility tax monthly fees for residential customers water cwa sewer king county sewer treatment king county metro capacity change surface water LQ1 King County Metropolitan King County Council Anne Noris, Clerk of the Council King County Courthouse 516 Third Avenue, Room 1200 Seattle, WA 98104 -3272 Tel: 206 296 -1020 Fax: 206-205 -8165 TTY/TDD 206 296 -1024 Email: anne.noris @kingcounty.gov Web: www.kingcounty.gov /council /clerk June 25, 2012 Mr. Pat Brodin, Operations Manager City of Tukwila 6200 Southcenter Blvd. Tukwila, WA 98188 Dear Mr. Brodin, Monetary Requirements for 2013 EXHIBIT_ The Metropolitan King County Council approved the sewer rate for 2013 and the sewage treatment capacity charge for 2013 with the adoption of Ordinance 17343 on June 11, 2012. A copy of Ordinance 17343 is enclosed for your information. If you have any questions, please call the Clerk of the Council's Office at 206 296 -1020. Sincerely, Anne Noris Clerk of the Council Enclosure 116 1.2. KING COUNTY 1200 King County Courthouse 516 Third Avenue Signature Report Seattle, WA 98104 King County June 12, 2012 Ordinance 17343 Proposed No. 2012- 0144.3 Sponsors McDermott 1 AN ORDINANCE determining the monetary requirements 2 for the disposal of sewage for the fiscal year beginning 3 January 1, 2013, and ending December 31, 2013, setting 4 the sewer rate for the fiscal year beginning January 1, 2013, 5 and ending December 31, 2013, and approving the amount 6 of the sewage treatment capacity charge for 2013, in 7 accordance with RCW 35.58.570; and amending Ordinance 8 12353, Section 2, as amended, and K.C.C. 4A.- and 9 Ordinance 11398, Section 1, as amended, and K.C.C. 10 28.84.055. 11 BE IT ORDAINED BY THE COUNCIL OF KING COUNTY: 12 SECTION 1. Ordinance 12353, Section 2, as amended, and K.C.C. 4A. are 13 each hereby amended to read as follows: 14 A. Having determined the monetary requirements for the disposal of sewage, the 15 council hereby adopts a ((2412)) 2013 sewer rate of 1hirty 16 nine dollars and seventy -nine cents per residential customer equivalent per month. Once 17 a sewer rate ordinance becomes effective, the clerk of the council is directed to deliver a 18 copy of that ordinance to each agency having an agreement for sewage disposal with 19 King County. 1 117 Ordinance 17343 20 B. The King County council approves the application of Statement of Financial 21 Accounting Standards No. 71 (FAS 71) to treat pollution remediation obligations as 22 regulatory assets, and establish a rate stabilization reserve for the purpose of leveling 23 rates between years. 24 C. As required for FAS 71 application, amounts are to be placed in the rate 25 stabilization reserve from operating revenues and removed from the calculation of debt 26 service coverage. The reserve balance shall be an amount at least sufficient to maintain a 27 level sewer rate between ((201 and 201- 2)) 2013 and 2014 and shall be used solely for 28 the purposes of. maintaining the level sewer rate in ((294 -2)) 2014 and if additional 29 reserve balance is available, moderating future rate increases beyond ((2042)) 2014 The 30 estimated amount of the reserve, as shown in the financial forecast, Attachment A to 31 -di anee 1 "02 this ordinance shall be revised in accordance with the ((204-2)) 2013 32 adopted budget and financial plan. If the reserve needs to be reduced to meet debt 33 service coverage requirements for ((2041-)) 2012, the county executive shall notify the 34 council of the change by providing an updated financial forecast. 35 D. The executive shall provide monthly cost reports to the council on Brightwater 36 as outlined in K.C.C. 28.86.165. 37 SECTION 2. Monetary requirements for the disposal of sewage as defined by 38 contract with the component sewer agencies for the fiscal year beginning January 1, 39 2013, and ending December 31, 2013. The council hereby determines the monetary 40 requirements for the disposal of sewage as follows: 41 Administration, operating, maintenance repair and replace (net of other income): 42 $65,697,551. 2 im Ordinance 17343 43 Establishment and maintenance of necessary working capital reserves: 44 $22,378,007. 45 Requirements of revenue bond resolutions (not included in above items and net of 46 interest income): $294,445,033. 47 TOTAL: $337,764,577. 48 SECTION 3. Ordinance 11398, Section 1, as amended, and K.C.C. 28.84.055 are 49 each hereby amended as follows: 50 A. The amount of the metropolitan sewage facility capacity charge adopted by 51 K.C.C. 28.84.050.0. that is charged monthly for fifteen years per residential customer or 52 residential customer equivalent shall be: 53 1. Seven dollars for sewer connections occurring between and including January 54 1, 1994, and December 31, 1997; 55 2. Ten dollars and fifty cents for sewer connections occurring between and 56 including January 1, 1998, and December 31, 2001; 57 3. Seventeen dollars and twenty cents for sewer connections occurring between 58 and including January 1, 2002, and December 31, 2002; 59 4. Seventeen dollars and sixty cents for sewer connections occurring between 60 and including January 1, 2003, and December 31, 2003; 61 5. Eighteen dollars for sewer connections occurring between and including 62 January 1, 2004, and December 31, 2004; 63 6. Thirty -four dollars and five cents for sewer connections occurring between 64 and including January 1, 2005, and December 31, 2006; 3 119 Ordinance 17343 65 7. Forty -two dollars for sewer connections occurring between and including 66 January 1, 2007, and December 31, 2007; 67 8. Forty -six dollars and twenty -five cents for sewer connections occurring 68 between and including January 1, 2008, and December 31, 2008; 69 9. Forty -seven dollars and sixty -four cents for sewer connections occurring 70 between and including January 1, 2009, and December 31, 2009; 71 10. Forty -nine dollars and seven cents for sewer connections occurring between 72 and including January 1, 2010, and December 31, 2010; 73 11. Fifty dollars and forty-five cents for sewer connections occurring between 74 and including January 1, 2011, and December 31, 2011; ((and)) 75 12. Fifty -one dollars and ninety -five cents for sewer connections occurring 76 between and including January 1, 2012, and December 31, 2012 and 77 13. Fifty -three dollars and fifty cents for sewer connections occurring between 78 and including January 1, 2013, and December 31, 2013 79 B.I. In accordance with adopted policy FP- 15.3.d. in the Regional Wastewater 80 Services Plan, K.C.C. 28.86.160.C., it is the council's intent to base the capacity charge 81 upon the costs, customer growth and related financial assumptions used in the Regional 82 Wastewater Services Plan. 83 2. In accordance with adopted policy FP- 6 in the Regional Wastewater Services 84 Plan, K.C.C. 28.86.160.C, the council hereby approves the cash balance and reserves as 85 contained in the attached financial plan for ((24 2)) 2013 86 3. In accordance with adopted policy FP- 15.3.c., King County shall pursue 87 changes in state legislation to enable the county to require payment of the capacity charge 4 120 Ordinance 17343 88 89 in a single payment, while preserving the option for new ratepayers to finance the capacity charge. Ordinance 17343 was introduced on 5/14/2012 and passed as amended by the Metropolitan King County Council on 6/11/2012, by the following vote: Yes: 8 Mr. Phillips, Mr. von Reichbauer, Mr. Gossett, Ms. Hague, Ms. Patterson, Ms. Lambert, Mr. Ferguson and Mr. McDermott No: 0 Excused: 1 Mr. Dunn ATTEST: Attachments: A. Financial Plan for 2013 Amended Proposed Sewer Rate, Revised June 11, 2012 5 C3 M t_ ("T' 0 121 KING COUNTY COUNCIL KING COUNTY, WASHINGTON e f'7 Anne Noris, Clerk of the Council c c� z r 1 1 APPROVED v VW'j 0 this day of 2012. 0 Dow Constantine, County Executive Attachments: A. Financial Plan for 2013 Amended Proposed Sewer Rate, Revised June 11, 2012 5 C3 M t_ ("T' 0 121 KING COUNTY COUNCIL KING COUNTY, WASHINGTON Cl) r V 0) o 0) 0) W W N N O co co O 1� O CO O W co 0) O n V M V V m 0) to f7 r n m O V n O W 0) 0) 0) O v O V v N (p vi o N M m 0) M V W v m m C h .-i w M N —(O N O M O M M N V V M N W m CO M O V V t0 n 0) O n W m V) M t0 co M W n w 0) n W )OM m r N n W n N M 0 M V v .N... r r v N N N N 0 LL M n o O N n O) 01 N N t0 M W) aD O 0) O LO N O n N ao O co O W W to n O N m 0 M w 03 W N M r V V V V O 0) m O V W O O v 0 M M n W N W m n V M W N N O W O tO n M Oc W W C C y N a M n m u') r M N W 0) N V V u) N 0) N to wi n n 69 co W a .)O r N to W n C t0 N N N wi O N N p LL N co o V W CO m O V N r M O N m O M M OD W O n O n n N O n W m M 0 M t0 M N N 0 0 O LO O N 0) n V 'O O O N tC O n M O) W m V_ O O t0 N n n C O) m N V M V N O O N C N N V m C vr Oi ai .-O n ON m (1) tri V V t0 t0 N vN LO n n m n t9 r m N CO co V N v r O t0 n n W o y M v v v r r r N N N O LL 0) co O O O R :;F FT m t') C am O V O co 0 U M G 7 t0 0 O N_ O N_ M N N N co t7 M M O eD W w V M r m O O n O O O O V m t0 10 O O N V tO C M r n W 0) v N W n C W O m N to m M 'j O O V O V V N n 69 N co N N u) i) r v V, th tD h tri O m n v v tp C h M m tD M V N N O N O LL LO 0) o M N t0 O m 0) n in M w M tD O m m O) O et O co 0) t0 si O O co O m co O n o LO m O m m t0 M N M M M O m m m O) O m O M W) W W O O O O O W O p r m O M r 0) 0) W t0 n v V W N V M (p O n N V V W W N O W O (31 W V5 O M O m O) 0) O m h n W tb m N t0 O m V v N W m V 0) V n 69 N Cl) V N N v v v N W )O t0 V v m N N O N O LL m O o N r- co W O N n M m O O M M O O O O V V a0 m O W n N n N (D 0) M O 0) M N M M M M V O h m t0 O O O V t0 m N N W V O V C', n n 0, C N n 0) M m V N t0 W O v 0) O r V O O u] )O O 0) M W O W O y y O M N n m N 0) n N W O h W N O )[7 N N v tri v vi U! N Q M n f9 n M V N N N v v M m m m M n W W W N LL 2 .c N O LL 3 c tD W O o W M O V O m V O to W N t0 O t0 7 O N N W O O M O V 0) V.-. N tD W O OD 0) N— O m 0) m n O m N t0 0) M 0) n n 0 W W n O O W O n W V 0) W t1D O n Q n m 0 m M O n O) M W M m r O N N m W N m O O O m N W m v n M M V y O M (D W M )O C) W W n w O N O N )O O N W h W M O W) to tri tp tD N n t9 m V O) N N W n 0) W N M O N W W O C r N N O L" LL N m 0 W n O M O n n N h V O (1D t0 O m W (3 O O M N W N N v n ui W V O V N r N— co O N 0) O N V m W V tD O co O m m O 0 co M W W W n v 0) OD n N O N O 0 r (0 M V n W m O) N m t0 W M m h M m O O M N m V N W m^ V h V O V O O O M Co CO Ln n rn M n N O V W O m LO vi m m V m M m m N O n 69 m a v v M O co .N.. v n- W N n M(D v r .N.. r 0) m n v N N N C N IL d U O N z Lli N H W y U U F- O N O Er m a w w W J U m 7 F H Z H 0) W w d W a Z Q U O O O m z W W H W a n w>g U) I-- w w tD d Z Z v 91 w m m w m c w z w LL W W W W W U' W ti I w to tr w m 0 w z J to W Z U U N W z (ii w t 9 9 W'< m z g w ca c o w m OF H Z O Z O m ww m W a Z w z¢ y L j U Z d z z m z c m E c F a 0 0 z¢ U j Z LL °c c w V g LL m w LL O w w W o m o O W O d 7 Z z O❑ Z W W U m Z m y w z N `m" y w w O U U 'w� J J LL O LL m r3 m e c W w U> W W O tom O Z J m _z Z a`i m U m U O Z m m m 7 W Q z Z 7 L) 0 z_ w p w D w LL 7 m 7 7> W S c z E E u W c f0 W W LL LL Q H F H Z 7 m m r J J W m w F m m LL m m H Z O y W m m¢ 2 m [L [L Z Z y¢ W W f' ca J F' y Z m to a t O HI z w W wL m= d cF F-❑�❑ z tnv¢ m CD o w o t ��p w mm mm FO �ww z �°L �p a mzm z o o� zt w0 w o.0 SUmO)- a w0 w z a as O w wa >(9a wOwo z Oma0 O~ m m O O W t 0 0 U m m U m❑¢ w U F U. r d 3 7 d A a) d w R d 3 d M d N O CL 0 IL M d E Q O N d t O C R a R C R _C U- c O 5 F- z W U H Q 122 Residential Water Rate Comparison as of June 2012 2011 2012 Ranking Ranking I CITY 17 1 WATER DISTRICT 119 (Duval 14 2 DUVALL 1 3 SEATTLE 2 4 BELLEVUE 3 5 KENT 47.45 6 �TUI�WIL:A 2tl'! 29.61 2 6 CEDAR RIVER WATER DIST 59.21 12.35 3 3.88/ 4 5 8 HIGHLINE W ATER DIST 8 9 SKYWAY (MA) 11 10 COVINTON (CW (e very 2 mos. 13 11 CO AL CREEK 12 12 WOODINVILLE 10 13 KING COUNTY W54125 4 14 IS SAQUAH 19 15 RENTON 16 NORTHSHORE 15 17 SODS C REEK 18 ALDERWOOD 20 19 KIRKLAND 9 20 KING COUNTY WD #20 16 21 EDMONDS 22 SAMMAM PLA TEAU 18 23 REDMOND (CW 21 24 AUBURN 25 BOTHELL 26 NE SAMM 22 27 M ERCER ISLAND 23 28 TACOMA 25 29 LAKEHAVEN WAY 24 1 30 LYNNWOOD 13.24 3.43/4.06 3 7.45 50.69 14.85 3.29/417 34.6 4 20.48 2.61/3.92 28.72 49.2 18.91 3.01 30.10 49.01 14.50 3.33 33.30 47.80 12.50 3.28 32 45.30 12.78 1.65/193 30.18 42.96 15.96 2.30/3.09 26.95 42.91 15.00 2.75 27.50 42.50 13.00 1.65/4.02 28.35 41.35 13.63 2.73 27.3 40.93 16.76 4.02 24.12 40.88 19.75 2.10 2 1.00 4035 19.16 2.14 21.40 40.56 23.02 1.59/1.93 17 .26 40.28 12.85 1.55/3.10 24 .80 37.65 11.93 2.37/2.90 25.29 37.22 10.51 2.07/3.03 25.50 36.01 15.01 2.05 20.50 35.51 10.39 2.46 24.60 34.99 16.76 1.36/1.71 15.40 32.16 14.75 1.24 12.40 27.15 14.29 1.64 8.20 22.49 2011 2013 RATE D ifference TOTAL 63.50 3.00 42.26 2 0.81 56.05 4.65 61. 54.84 4.37 59.2 52.78 1.55 39.95 46.32 44.36 43.75 44.23 44.50 51.09 37.01 EPA 36.05 38.75 39.06 37.47 32.36 10.74 3.1_9 4.84 5.26 3. 0.80 8.13 5.90 51.94 1 4_. 2.00 1.50 0. 4.86 31.15 30.68 24.21 19.88 3.84 1.48 2.94 2.61 1 25.39 Residential Sewer Rate Comparison as of September 2012 2011 2012 2012 City King County 2012 Ranking Ranking CITY 2011 Charge Sewer Total 2013 1 1 SEATTLE KC 71.96 38.66 36.10 74.76 18 2 MERCER ISLAND KC 52.15 32.69 36.10 68.79 4 3 DUVALL 62.35 64.35 64.35 5 4 SKYWAY KC 61.15 26.93 36.10 63.03 ?TUKWILA 2013 jKC 55:36 231 39;79 3 5 VASHON SE KC 62.44 26.34 3610 62.44 6 6 RENTON KC 61.14 25.68 37.26 62.34 7 7 SAMMAMISH PLAT KC 59.10 25.17 36.10 61.27 8 8 WOODINVILLE KC 57.76 24.8 36.18 61.04 13 9 BOTHELL KC 54.27 23.33 36.10 59.43 9 10 NE SAMMAM KC 56.73 21.25 36.10 57.35 10 11 BELLEVUE KC 55.07 19.74 36.10 55.84 12 12 CEDAR RIVER W S KC 54.74 19. 36.16 55.67 11 j 13 TUKWILA 2012 w KG 55.36 1926 36.1(1 5&. 6 20 14 BLACK DIAMOND KC 51.39 19.16 36.10 55.26 22 15 AUBURN KC 49.46 19.10 36.10 55.20 2 16 LAKEHAVEN 64.91 18.27 36.10 54.37 15 17 COAL CREE KC 53.50 18.19 36.10 54.29 58.92 14 18 ISSAQUAH KC 54.11 16.92 36 .10 53.02 25 19 KIRKL KC 48.13 16.92 36.10 53.02 48.79 19 20 ''SODS CREEK KC 52.15 16.85 36.10 52.95 16 21 KENT KC 52.71 16.61 36.10 52.71 21 22 LAKE FOREST P ARK KC 50.86 15.65 36.10 51.75 23 23 ALDERWOOD KC 48.67 15.36 36.10 51.46 24 24 REDMOND KC 48.42 12.57 36.10 48.67 26 25 VALLEY VIEW SEWER KC 46.10 11 .00 36.10 47.10 27 26 NORTHSHORE KC 46.10 10.00 36 .10 46.10 28 27 ALGONA KC 45.22 9.12 36.10 45.22 29 28 SOUTHWEST Suburban Sewer 25.50 27.50 0.00 27.50 30 29 MIDWAY SEWER DISTRICT 22.00 24.00 0.00 24.00 AVERAGE 54.44 56.22 Exhibit C -1 W'.TW Eng \OTHER1Gaii I.abanara \Water Sewer DocumentsWtdhty Rate Surveya Water. Sewer SSWM. dsx 123 Summer 2 City Base R Rates C Consumption 2012 Rate P Per CCF Assume 10 CCF T TOTAL 37.50 2 2. 90 29.00 6 66.50 2133 3 3.48/6.46 3 3974 6 63.07 13.25.4.34/5.15 4 47.45 6 60.70 29.61 2 2.96 2 29. 60 5 59.21 12.35 3 3.88/ 4 41.98 5 54.33 53c0, 18.99 2 2.39/4.20 3 32.95 5 5 12.00 3 3 89 2011 2013 RATE D ifference TOTAL 63.50 3.00 42.26 2 0.81 56.05 4.65 61. 54.84 4.37 59.2 52.78 1.55 39.95 46.32 44.36 43.75 44.23 44.50 51.09 37.01 EPA 36.05 38.75 39.06 37.47 32.36 10.74 3.1_9 4.84 5.26 3. 0.80 8.13 5.90 51.94 1 4_. 2.00 1.50 0. 4.86 31.15 30.68 24.21 19.88 3.84 1.48 2.94 2.61 1 25.39 Residential Sewer Rate Comparison as of September 2012 2011 2012 2012 City King County 2012 Ranking Ranking CITY 2011 Charge Sewer Total 2013 1 1 SEATTLE KC 71.96 38.66 36.10 74.76 18 2 MERCER ISLAND KC 52.15 32.69 36.10 68.79 4 3 DUVALL 62.35 64.35 64.35 5 4 SKYWAY KC 61.15 26.93 36.10 63.03 ?TUKWILA 2013 jKC 55:36 231 39;79 3 5 VASHON SE KC 62.44 26.34 3610 62.44 6 6 RENTON KC 61.14 25.68 37.26 62.34 7 7 SAMMAMISH PLAT KC 59.10 25.17 36.10 61.27 8 8 WOODINVILLE KC 57.76 24.8 36.18 61.04 13 9 BOTHELL KC 54.27 23.33 36.10 59.43 9 10 NE SAMMAM KC 56.73 21.25 36.10 57.35 10 11 BELLEVUE KC 55.07 19.74 36.10 55.84 12 12 CEDAR RIVER W S KC 54.74 19. 36.16 55.67 11 j 13 TUKWILA 2012 w KG 55.36 1926 36.1(1 5&. 6 20 14 BLACK DIAMOND KC 51.39 19.16 36.10 55.26 22 15 AUBURN KC 49.46 19.10 36.10 55.20 2 16 LAKEHAVEN 64.91 18.27 36.10 54.37 15 17 COAL CREE KC 53.50 18.19 36.10 54.29 58.92 14 18 ISSAQUAH KC 54.11 16.92 36 .10 53.02 25 19 KIRKL KC 48.13 16.92 36.10 53.02 48.79 19 20 ''SODS CREEK KC 52.15 16.85 36.10 52.95 16 21 KENT KC 52.71 16.61 36.10 52.71 21 22 LAKE FOREST P ARK KC 50.86 15.65 36.10 51.75 23 23 ALDERWOOD KC 48.67 15.36 36.10 51.46 24 24 REDMOND KC 48.42 12.57 36.10 48.67 26 25 VALLEY VIEW SEWER KC 46.10 11 .00 36.10 47.10 27 26 NORTHSHORE KC 46.10 10.00 36 .10 46.10 28 27 ALGONA KC 45.22 9.12 36.10 45.22 29 28 SOUTHWEST Suburban Sewer 25.50 27.50 0.00 27.50 30 29 MIDWAY SEWER DISTRICT 22.00 24.00 0.00 24.00 AVERAGE 54.44 56.22 Exhibit C -1 W'.TW Eng \OTHER1Gaii I.abanara \Water Sewer DocumentsWtdhty Rate Surveya Water. Sewer SSWM. dsx 123 39.95 46.32 44.36 43.75 44.23 44.50 51.09 37.01 EPA 36.05 38.75 39.06 37.47 32.36 10.74 3.1_9 4.84 5.26 3. 0.80 8.13 5.90 51.94 1 4_. 2.00 1.50 0. 4.86 31.15 30.68 24.21 19.88 3.84 1.48 2.94 2.61 1 25.39 Residential Sewer Rate Comparison as of September 2012 2011 2012 2012 City King County 2012 Ranking Ranking CITY 2011 Charge Sewer Total 2013 1 1 SEATTLE KC 71.96 38.66 36.10 74.76 18 2 MERCER ISLAND KC 52.15 32.69 36.10 68.79 4 3 DUVALL 62.35 64.35 64.35 5 4 SKYWAY KC 61.15 26.93 36.10 63.03 ?TUKWILA 2013 jKC 55:36 231 39;79 3 5 VASHON SE KC 62.44 26.34 3610 62.44 6 6 RENTON KC 61.14 25.68 37.26 62.34 7 7 SAMMAMISH PLAT KC 59.10 25.17 36.10 61.27 8 8 WOODINVILLE KC 57.76 24.8 36.18 61.04 13 9 BOTHELL KC 54.27 23.33 36.10 59.43 9 10 NE SAMMAM KC 56.73 21.25 36.10 57.35 10 11 BELLEVUE KC 55.07 19.74 36.10 55.84 12 12 CEDAR RIVER W S KC 54.74 19. 36.16 55.67 11 j 13 TUKWILA 2012 w KG 55.36 1926 36.1(1 5&. 6 20 14 BLACK DIAMOND KC 51.39 19.16 36.10 55.26 22 15 AUBURN KC 49.46 19.10 36.10 55.20 2 16 LAKEHAVEN 64.91 18.27 36.10 54.37 15 17 COAL CREE KC 53.50 18.19 36.10 54.29 58.92 14 18 ISSAQUAH KC 54.11 16.92 36 .10 53.02 25 19 KIRKL KC 48.13 16.92 36.10 53.02 48.79 19 20 ''SODS CREEK KC 52.15 16.85 36.10 52.95 16 21 KENT KC 52.71 16.61 36.10 52.71 21 22 LAKE FOREST P ARK KC 50.86 15.65 36.10 51.75 23 23 ALDERWOOD KC 48.67 15.36 36.10 51.46 24 24 REDMOND KC 48.42 12.57 36.10 48.67 26 25 VALLEY VIEW SEWER KC 46.10 11 .00 36.10 47.10 27 26 NORTHSHORE KC 46.10 10.00 36 .10 46.10 28 27 ALGONA KC 45.22 9.12 36.10 45.22 29 28 SOUTHWEST Suburban Sewer 25.50 27.50 0.00 27.50 30 29 MIDWAY SEWER DISTRICT 22.00 24.00 0.00 24.00 AVERAGE 54.44 56.22 Exhibit C -1 W'.TW Eng \OTHER1Gaii I.abanara \Water Sewer DocumentsWtdhty Rate Surveya Water. Sewer SSWM. dsx 123 Exhibit C -1 W'.TW Eng \OTHER1Gaii I.abanara \Water Sewer DocumentsWtdhty Rate Surveya Water. Sewer SSWM. dsx 123 Exhibit C -2 SINGLE FAMILY SURFACE WATER RATES AS OF JUNE 2012 2012 2013 CITY Monthly Rate Yearly Rate Yearly Rate Seattle (range of fees) 19.58 234.96 261.72 Duvall 17.46 209.52 Redmond (range, minimum shown) 16.56 198.72 198.72 Auburn 16.13 193.56 208.92 Mercer Island 14.96 179.52 Issaquah 14.08 168.96 Newcastle 13.28 159.36 159.36 Sammamish 12.50 150.00 Renton 11.51 138.12 Shoreline 11.08 133.00 137.00 King County 11.08 133.00 Kent 10.56 126.72 145.68 T lttt It (ti £iiils ti i stl St4£�s!{ r t i t T�.<�I t Lynnwood 7.20 90.24 94.32 Federal Way 7.10 85.15 124 WAPW Eng \OTHER \Gail Labanara \Water Sewer Documents \Utility Rate Surveys Water, Sewer SSWM.xlsx DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A NEW PUBLIC WORKS FEE SCHEDULE; AND REPEALING RESOLUTION NO. 1755. WHEREAS, each year the City analyzes the rate model for the three utility enterprise funds, which are water, sewer and surface water, to ensure revenues keep pace with expenses, to update the traffic model, and to analyze the transportation network to ensure continued compliance with the Growth Management Act and the City's adopted Comprehensive Plan; and WHEREAS, the City is authorized to impose fees to recoup the costs of services rendered; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Public Works fees will be charged according to the following schedule, which shall supersede any previously adopted Public Works Fee Schedule: PUBLIC WORKS FEE SCHEDULE PERMIT DESCRIPTION FEE Type A Short -Term Non- rofit 50.00 Type B Short-Term Profit $100.00 Type C (Infrastructure and Grading on Private Property and City Right -of -Way and Disturbance of City Right -of -Way) $250.00 application base fee, plus four components based on construction value: 1) Plan Review 2) Construction Inspection 3) Pavement Mitigation 4 Grading Plan Review Type D (Long-Term) $100.00 Type E (Potential Disturbance of City Right-of-Wa $100.00 Type F (Blanket Permits) $250.00 processing fee, plus $5,000.00 cash deposit, withdraw $100.00 per instance for inspection Additional Inspections $60.00 per inspection Franchise Telecommunications $5,000.00 administrative fee Franchise Cable $5,000.00 plus 5% of total revenue Street Vacation $1,200.00 WAWord Processing- City\Resolutions \PW Fee Schedule -2012 rev strike -thru 10- 16- 12.doc Page 1 of 5 125 PERMIT DESCRIPTION FEE Latecomer's Agreements $500.00 processing fee, plus 17% administrative fee, p lus $500.00 segregation fee Flood Zone Control $50.00 Copy of City of Tukwila's Infrastructure Design and Construction Standards $50.00 WATER RATES FEE Water Meter Installation .75 inch 600.00 1 inch 1,100.00 1.5 inch 2,400.00 2 inch 2,800.00 3 inch 4,400.00 4 inch 7,800.00 6 inch $12,500.00 Water Meter Deduct $25.00 Water Base Charge (Monthly) In addition to the monthly water base charge, each 100 cubic feet of water used will be charged as shown in "Water Rates (Monthly)." Current 2012 Proposed 2013 Single Family (one dwelling unit) 12.00 $14.00 Multi Family (more than one dwelling unit) 12.00* $14.00* Commercial /Industrial Customers: *each dwelling unit 3/4 inch Service 40.00 1 inch Service 50.00 1 -1/2 inch Service 75.00 2 inch Service $100.00 3 inch Service $145.00 4 inch Service $195.00 6 inch Service $290.00 8 inch Service $385.00 10 inch Service $480.00 12 inch Service $575.00 Water Rates (Monthly) In addition to the monthly water base charge listed above, each 100 cubic feet of water will be charged at the following rates: Current 2012 Proposed 2013 Single Family Residence (Oct -May) $2.79 $2.80 Single Family Residence (Jun -Sept) $3.89 $3.90 Multi Family (Oct -May) $2.79 $2.92 Multi Family (Jun -Sept) $3.89 $4.08 Commercial /Industrial (Oct -May) $3.62 $3.98 Commercial /Industrial (Jun -Sept) $4.98 $5.46 Fire Protection Service Charges (Monthly) Per month based on size of service. 2 inch Service 9.00 3 inch Service 20.00 4 inch Service 35.00 6 inch Service 80.00 8 inch Service $120.00 10 inch Service $200.00 12 inch Service $260.00 WAWord Processing- City\Resolutions \PW Fee Schedule -2012 rev strike -thru 10- 16- 12.doc Page 2 of 5 126 WATER SERVICES FEE Water Turn On 50.00 After -Hour Water Turn On additional fee for [TMC 14.16.030 (1)] customer requested after -hours water turn on $100.00 Unauthorized Water Usage after shut -off for $100.00 non payment Flat rate of $334 $40.48 per month and, in Special Meter Read customer requested 30.00 meter read outside normal read schedule month shall be at the rate of $33.74 $40.48 per 750 Shut -off notice 30.00 Change in owner, tenant, and /or third party 20.00 paying agent On all sewer accounts 30 days in arrears from the date of delinquency until paid Fire Hydrant per month 20.00 Emergency Conservation Sanction $100.00 Temporary Water Meter Deposit 4. .75" and 1" water meter 300.00 2.5" water meter $1,500.00 Temporary Water Meter Rental per minimum 71 85% Developed Surface 60 days expiration .75" and 1" water meter 75.00 2.5" water meter 150.00 $1,080.55 WATER INTEREST CHARGE RATE On all water accounts 30 days in arrears from the date of delinquency until paid 8% per annum computed on a monthly basis SEWER RATES FEES Residential Sewer Service Flat rate of $19.26 $23.10 per month (single dwelling unit) [TMC 14.16.030 (1)] Residential Sewer Service (multiple dwelling Flat rate of $19.26 $23.10 per month for each unit, permanent type) dwelling unit [TMC 14.16.030 (2)] Commercial and Industrial Sewage Service Flat rate of $334 $40.48 per month and, in 1. addition, any usage over 750 cubic feet of water per 123.17 month shall be at the rate of $33.74 $40.48 per 750 129.32 cubic feet [TMC 14.16.030 (4)] 0 20% Developed Surface SEWER INTEREST CHARGE RATE On all sewer accounts 30 days in arrears from the date of delinquency until paid 8% per annum computed on a monthly basis W: \Word Process ing- City \Resolutions \PW Fee Schedule -2012 rev strike -thru 10- 16- 12.doc Page 3 of 5 127 SURFACE WATER RATES FEE PER YEAR Surface Water Utility Rates Per Year Service Charge Per Acre Category Current 2012 Proposed 2013 1. Natural 123.17 129.32 2. 0 20% Developed Surface 267.77 281.15 3. 21 50% Developed Surface 490.77 515.30 4. 51 70% Developed Surface 732.29 768.90 5. 71 85% Developed Surface 882.21 926.32 6. 86 100% Developed Surface $1,029.10 $1,080.55 7. Single Family Residential Parcels 102.00 per parcel 107.00 per parcel W: \Word Process ing- City \Resolutions \PW Fee Schedule -2012 rev strike -thru 10- 16- 12.doc Page 3 of 5 127 SURFACE WATER INTEREST CHARGE RATE On all surface water accounts 30 days in arrears from the date of delinquency until paid 8% per annum computed on a monthly basis TRANSPORTATION CONCURRENCY TEST FEE SCHEDULE Fees for Residential Use UNIT ALL TYPES OF RESIDENTIAL' Between 1 and 3 300.00 Between 4 and 5 600.00 Between 6 and 10 1,200.00 Between 11 and 15 2,000.00 Between 16 and 20 3,500.00 Between 21 and 25 5,000.00 Between 26 and 30 6,500.00 Between 31 and 40 8,000.00 Between 41 and 60 $10,000.00 Greater than 60 $12,000.00 All residential uses defined by the ITE Trip Generation Manual Land Use Codes 200 -299, including single family, multi-family, mobile home parks, and shared housin Fees for Non Residential Use GROSS FLOOR AREA INDUSTRIAL OFFICE RETAIL EATERY INSTITU- TIONAL PORT ALL OTHER USES Less than 5,000 $1,000 $1,800 $2,700 $5,400 $500 $1,500 Between 5,001 and 10,000 $1,500 $2,700 $4,050 $8,100 $1,000 $2,000 Between 10,001 and 20,000 $2,000 $3,600 $5,400 $10,800 $1,500 $2,500 Between 20,001 and 30,000 $3,000 $5,400 $8,100 $10,800 $2,000 $2,500 Between 30,001 and 40,000 $4,000 $7,200 $10,800 $10,800 $2,500 $2,500 Between 40,001 and 50,000 $5,000 $9,000 $13,500 $10,800 $3,000 $2,500 Between 50,001 and 70,000 $6,000 $10,800 $16,200 $10,800 $4,000 $2,500 Between 70,001 and 90,000 $7,000 $12,600 $18,900 $10,800 $5,000 $2,500 Between 90,001 and 150,000 $8,000 $14,400 $21,600 $10,800 $6,000 $2,500 Between 150,001 and 200,000 $9,000 $16,200 $24,300 $10,800 $7,000 $2,500 Greater than 200,000 $10,000 $18,000 $24,300 $10,800 $8,000 $2,500 Z All industrial /agricultural uses defined by the ITE Trip Generation Manual Land Use Codes 100 -199, including light and heavy industrial, manufacturing, and warehousin 3 All office, medical, and service related uses defined by the ITE Trip Generation Manual Land Use Codes 600 -699, 700 -799, and 900 -999, including general office, medical facilities, and banks 4 All retail and recreation uses defined by the ITE Trip Generation Manual Land Use Codes 400 -499, 800 -830 and 837 -899, including retail sales, rental sales, athletic clubs, and theaters 5 All food service uses defined by the ITE Trip Generation Manual Land Use Codes 831 -836, excluding accessory (stand alone) drive through espresso stands (or similar) under 250 sq. ft., which are assessed $300 5 All institutional and transportation uses defined by the ITE Trip Generation Manual Land Use Codes 000 -099 and 500 -599, including schools, places of worship, day care, terminals, and transit W: \Word Process ing- City \Resolutions \PW Fee Schedule -2012 rev strike -thru 10- 16- 12.doc Page 4 of 5 W Section 2. Repealer. Resolution No. 1755 is hereby repealed. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Verna Seal, Council President Filed with the City Clerk:_ Passed by the City Council: Resolution Number: W1Word Processing- City\Resolutions \PW Fee Schedule -2012 rev strike -thru 10- 16- 12.doc Page 5 of 5 129 130 ATTACHMENT D City of Tukwila WATER ENTERPRISE FUND 2013 2018 Analysis in 000's REVENUES Actual Actual a 2011 Actual Budget 2012 Estimate 2013 2014 2015 2016 2017 2018 Totals Monthly Water Charges Base Base Base +10% +10% +10% +10% +10% +10% Cascade Water Alliance (CWA) 1,862 2,010 2,136 2,130 2,186 2,310 2,402 2,498 2,623 2,755 14,774 Regular City Water 2,541 2,737 2,893 2,800 3,026 3,207 3,464 3,706 3,965 4,243 21,611 36,385 Subtotal Water 4,403 4,747 5,029 4,930 5,212 5,517 5,866 6,204 6,588 6,998 Other Miscellaneous Revenue 334 215 128 200 130 130 150 170 200 220 1,000 Interlocal Ags \PWTF \Grants 314 1,888 136 0 1,725 0 0 0 0 1,725 Water Connection Fees (2) 30 10 25 10 50 50 25 25 25 10 185 Total Revenues 5,081 6,860 5,318 5,140 5,392 7,422 6,041 6,399 6,813 7,228 39,295 EXPENDITURES CWA Purchased Water cat 1,862 2,010 2,136 2,140 2,186 2,310 2,402 2,498 2,623 2,755 14,774 Water Operations Maintenance 1,381 1,274 1,174 1,200 1,786 1,827 1,881 1,928 2,005 2,086 11,513 Debt Service 554 554 555 555 544 545 690 302 302 302 2,685 Interfund Utility Tax 10% 502 475 516 500 534 565 602 637 679 722 3,739 Engineering Labor t71 67 70 75 80 74 76 78 80 83 85 476 33,187 Subtotal 4,366 4,383 4,456 4,475 5,124 5,323 5,653 5,445 5,692 5,950 Water Capital CIP Program 529 1,982 1,735 1,735 1,473 1,776 1,028 1,105 867 860 7,109 40,296 Total Expenditures 4,895 6,365 6,191 6,210 6,597 7,099 6,681 6,550 6,559 6,810 FUND BALANCE Change in Working Capital 186 495 (873) (1,070) (1,205) 323 (640) (151) 254 418 (1,001) Beginning Balance 2,348 1,685 854 854 4,000 2,795 3,118 2,479 2,327 2,581 1 4,000 3,000 Ending Balance 2,534 2,180 (19) (216) 2,795 3,118 2,479 2,327 2,581 3,000 Working Capital Components: Reserved 20 of revenue 1,028 1,078 1,139 1,208 1,280 1,363 1,363 Unreserved 1,767 2,040 1,339 1,119 1,302 1,637 1,637 Ending Balance 2,534 2,180 (19) (216) 2,795 3,118 2,479 2,327 2,581 3,000 3,000 2013 2018 Financial Planning Model XX I I I 1011712012131 132 ATTACHMENT E City of Tukwila SEWER ENTERPRISE FUND 2013 2018 Analysis in 000's REVENUES 2010 Actual 201-1 Actual 2012 Budget 2012 Estimate 2013 2014 2015 2016 2017 2018 Totals Monthly Sewer Charges +15% +20% +20% +20% +20% +10% +15% +10% +15% King County Metro Sewer (1) 3,572 3,385 3,749 3,400 3,749 3,749 4,161 4,161 4,577 4,577 24,974 Regular City Sewer (2) 1,522 2,128 1,572 2,000 1,886 2,169 2,342 2,647 2,859 3,230 15,133 Subtotal Sewer Revenue 5,094 5,513 5,321 5,400 5,635 5,918 6,503 6,808 7,436 7,807 40,107 Other Misc. Revenue 290 184 81 125 150 150 160 180 200 210 1,050 Grant/ Bonds/ PWTF 886 1,228 640 400 750 458 1,756 1,757 0 750 5,471 Sewer Connection Fees (3) 107 115 120 52 120 120 125 125 100 100 690 47,318 Total Revenues 6,377 7,040 6,162 5,977 6,655 6,646 8,544 8,870 7,736 8,867 EXPENDITURES Sewer Operations Maintenance King County Metro Sewer ial 3,088 3,385 3,749 3,400 3,749 3,749 4,161 4,161 4,577 4,577 24,974 Regular City Sewer (5) 997 913 867 950 987 1,012 1,036 1,067 1,099 1,132 6,333 Debt Service (6) 358 357 356 356 355 354 392 391 709 710 2,911 Interfund Utility Tax 17) 10% 618 562 547 500 579 609 666 699 764 802 4,118 Engineering Labor (9) 82 137 73 100 74 77 78 80 83 85 477 Subtotal 5,143 5,354 5,592 5,306 5,744 5,801 6,333 6,398 7,232 7,306 38,813 Sewer Capital CIP Program 970 2,327 805 400 1,420 883 1,831 1,832 500 1,075 7,541 Total Expenditures 6,1.1.3 7,681 6,397 5,706 7,164 6,684 8,164 8,230 7,732 8,381 46,354 FUND BALANCE Change in Working Capital °1 264 (641) (235) 271 (509) (38) 380 640 4 487 964 Beginning Balance 2,348 1,685 854 854 1,100 592 553 933 1,574 1,578 1,100 Ending Balance 2,612 1,044 619 1,125 592 553 933 1,574 1,578 2,064 2,064 Working Capital Components: Reserved cn> 20% of revenue 1,115 1,181 1,238 1,358 1,423 1,547 1,547 Unreserved (524) (628) (304) 216 155 517 517 Ending Balance 2,612 1,044 619 1,125 592 553 933 1,574 1,578 2,064 2,064 If the Ending Fund Balance (Accumulated Totals listed above) goes negative, an interfund loan would be requested and an emergency rate increase may be considered. (a) Revenues in excess of (less than) expenditures n> Annual reserve balance requirement equals 20% of the prior year operating revenues. 2013 2018 Financial Planning Model XXV 1011 712012 1 33 134 ATTACHMENT F City of Tukwila SURFACE WATER ENTERPRISE FUND 2013 2018 Analysis in 000's REVENUES 2010 Actu ctu al 2011 Actual 2012 dg et Buudg 2012 Estimate 2013 2014 2015 2016 2017 2018 Total +20% +10% +10% +10% +5% +10% +5% +10% +5% +10% Annual Billings (Current) i11 3,017 3,320 3,650 3,668 3,833 4,217 4,427 4,870 5,114 5,625 28,086 Other Revenues 27 56 17 21 19 20 30 50 75 75 269 Grants/ Bond Proceeds (2) 98 131 45 89 355 2,845 45 45 45 48 3,383 31,738 Total Revenues 3,142 3,507 3,712 3,778 4,207 7,082 4,502 4,965 5,234 5,748 EXPENDITURES Operations Maintenance 1,393 1,344 1,277 1,300 1,667 1,752 1,790 1,879 1,954 2,033 11,075 Debt Service 380 345 318 316 315 314 473 472 470 470 2,514 Interfund Utility Tax (1) 10% 318 335 367 366 385 424 446 492 519 570 2,836 Engineering Labor (6) 316 289 173 200 275 285 192 201 211 217 1,381 17,806 Subtotal 2,407 2,313 2,135 2,182 2,642 2,775 2,901 3,044 3,154 3,290 SSWM Capital CIP Program 1,668 1,230 2,235 1,500 2,485 4,354 1,216 1,755 1,263 2,464 13,537 31,343 Total Expenditures 4,075 3,543 4,370 3,682 5,127 7,129 4,117 4,799 4,417 5,754 FUND BALANCE Change in Working Capital (36) (658) 96 (920) (47) 385 166 817 (6) 396 Beginning Balance 2,348 1,685 854 854 2,000 1,080 1,033 1,418 1,584 2,402 2,000 I 2,396 Ending Balance 1,415 1,649 196 950 1,080 1,033 1,418 1,584 2,402 2,396 Working Capital Components: Reserved t 1 20 of revenue 738 770 847 891 984 1,038 1 1,038 Unreserved 342 263 571 693 1,418 1,358 1,358 Ending Balance 1,415 1,649 196 950 1,080 1,033 1,418 1,584 2,402 2,396 I 2,396 cal Revenues in excess of (less than) expenditures Annual reserve balance requirement equals 20% of the prior year operating revenues. 2013 2018 Financial Planning Model XXV1 1 1011712012 135 136 Seattle mulls water rates as usage unchanged despite dry spell I Local News I The Seattle Page 1 of 2 c $catt Ic Tel tues Wilts r Of a 2012 Pttlitzts Prize, Local News Originally published Friday, October 12, 2012 at 9:31 PM Seattle mulls water rates as usage unchanged despite dry spell Seattle Public Utilities is beginning an assessment of its rate structure. Is there a better way to charge for water, as people use less and less of it? By Lynda V. Mapes Seattle Times staff reporter A tatcr peak in water we f�.r Srata� C��lie tt ".�Lr��, 3 laic, iag s,tNi td,is °r �nreath• °a Aanl;;� tv`ai iraaln rns! L(.r na t?!.• v,,-. HI, s. ifsir.i III 'Esll. T4IA It w�A As rain rolls into the region at last this weekend, with it comes a silver lining for gardeners: lower water bills. But while some of us open those slim white envelopes from Seattle Public Utilities with dread $300 water bills are not uncommon for devoted gardeners in Pugetopia Seattle's recent dry spell (only 0.03 inches of rain were recorded between July 23 and our current storm) actually was not a financial gusher for the utility. That's because the dry, hot weather came so late this summer, and continued so deeply into autumn, the utility already had phased out its peak season surcharge, in place between May 16 and Sept. 15, as the heat and dryness continued relentlessly on. It also was such a wet spring and start to summer that instead of being a big year for water consumption, 2012 will end up right on target for normal usage. Besides, SPU's customers are such ardent conservationists, they are using less water than ever, despite population increases. It's a trend that has been under way for some time. SPU customers today use about 120 million gallons of water a day on average, while in 199o, they used 171 million, said Bruce Flory, senior economist for the utility. "You have less units to spread your costs over," said Ray Hoffman, director of Seattle Public Utilities. "That makes your rates higher, and that's a challenge, whether you are selling petroleum or water or Slinkys." The declining usage is a result of a combination of a conservation ethic along with changes in plumbing codes, and the impact of price. http:// seattletimes.com/html /localnews /2019418640 rainl3m.html 10/16/2012 137 X £3 As rain rolls into the region at last this weekend, with it comes a silver lining for gardeners: lower water bills. But while some of us open those slim white envelopes from Seattle Public Utilities with dread $300 water bills are not uncommon for devoted gardeners in Pugetopia Seattle's recent dry spell (only 0.03 inches of rain were recorded between July 23 and our current storm) actually was not a financial gusher for the utility. That's because the dry, hot weather came so late this summer, and continued so deeply into autumn, the utility already had phased out its peak season surcharge, in place between May 16 and Sept. 15, as the heat and dryness continued relentlessly on. It also was such a wet spring and start to summer that instead of being a big year for water consumption, 2012 will end up right on target for normal usage. Besides, SPU's customers are such ardent conservationists, they are using less water than ever, despite population increases. It's a trend that has been under way for some time. SPU customers today use about 120 million gallons of water a day on average, while in 199o, they used 171 million, said Bruce Flory, senior economist for the utility. "You have less units to spread your costs over," said Ray Hoffman, director of Seattle Public Utilities. "That makes your rates higher, and that's a challenge, whether you are selling petroleum or water or Slinkys." The declining usage is a result of a combination of a conservation ethic along with changes in plumbing codes, and the impact of price. http:// seattletimes.com/html /localnews /2019418640 rainl3m.html 10/16/2012 137 Seattle mulls water rates as usage unchanged despite dry spell I Local News I The Seattle Page 2 of 2 In inflation adjusted terms, water rates have quintupled since 1981, mostly because of the substantial decrease in consumption. The utility also has been in a long season of spending since the 199os, including paying for lids on reservoirs in the city, building two drinking -water treatment plants and a $loo million habitat conservation plan for the Cedar River, and paying a $40 million settlement for the Muckleshoot Indian Tribe. Paying for all that as usage declines has meant charging ever more per unit of water sold. But conservation also has meant a significant delay in the need to add new sources of supply, Hoffman said. Twenty years ago, Hoffman said, the utility projected a new source of drinking water would be needed by 2000. That projection later was extended to 203o, and by now, no new need for additional supply is envisioned until 2o6o. Seattle Public Utility customers are blessed with a pure, abundant source of fresh water, primarily delivered from the mountains of the Cedar River watershed. But while usage patterns have changed and weather, too the utility hasn't examined its rate structure in decades. So SPU is beginning a review of how it charges for water, Hoffman said. The goal is to look at equity across customer classes, as well as providing for revenue certainty that takes account of customers' declining use. One potential change could be to charge more for fixed costs, such as a base service charge, and pin less of the utility's revenue to volume of use. After a review at the staff level, the utility will make a recommendation to the mayor, who will in turn present and propose changes to the City Council. One thing is for sure: "We are glad to see the rain," Hoffman said. He's far from alone. "Thank goodness," said Val Easton, a Seattle horticulturist and author. "I worry about the street trees and trees on public property that aren't getting watered. "I grew up here and when it doesn't rain, it makes me uneasy." This, she said, will be remembered by her as a year of the unthinkable: "I got tired of vine- ripened tomatoes." Lynda V. Mapes: 2o6- 464 -2736 or lmapes @seattletimes.com. On Twitter @lyndavmapes. 138http://seattletimes.com/html/localnews/2019418640 3m.html 10/16/2012 139 Q, C s aJ... O r l r Z F a1 Vv O p a vii N �Q6 O E Z i f0 CU i}� R CL f E Oi L CL In ru In FW- IJIR R/IIRIRJI O 4 Qj c^ o oa o a o I 3 w ry i v to t O }f Q ra f s V d a fB L Z i I L U L6 In O o a r a ru zzz Qj +-s L Q 1► C f O Qj N ro O aJ LL- p Ln O Ln O tf1 O Lq Al O Lfl O z lD lD t.r1 to V V• M n'•1 N z 139 .s City of Tukwila Utilities Committee �r UTILITIES COMMITTEE Meeting Minutes October 23, 2012 S: 00 p.m. Conference Room 1 PRESENT Councilmembers: Dennis Robertson, Chair; and Joe Duffle Absent: Kate Kruller Staff: Bob Giberson, Frank Iriarte, Robin Tischmak, Pat Brodin, Greg Villanueva, Ryan Larson, Peggy McCarthy, Gail Labanara and Kimberly Matej CALL TO ORDER: The meeting was called to order at 5:01 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. NPDES Program: Department of Ecology Grant Application Staff is seeking Committee approval to submit an application to the Department of Ecology for toxics and nutrients storm drain cleaning for the conveyance system in the Lower Duwamish River in the amount of $310,000. This is a competitive grant from the National Estuary Program geared to reduce toxic and /or nutrient issues in selected areas of Puget Sound. This is considered to be a project of the City's NPDES Program. There are no matching fund requirements. UNANIMOUS APPROVAL. COMMITTEE APPROVAL TO APPLY FOR GRANT. B. 2013 Water, Sewer Surface Water Rates Staff is seeking Council approval of a resolution adopting a new Public Works Fee Schedule which will reflect increased water, sewer, and surface water rates for 2013. Water. In order to maintain current levels of service and lessen the impact of future increases to purchased water, staff is recommending an increase to the monthly water base charge from $12.00 to $14.00 for residential and multi family customers and a consumption charge increase applicable to all customers ranging from an increase of $0.01 $0.48 per 100 cubic feet of water (see draft resolution for specific service charges). Water revenue remains flat due to decreased consumption. A portion of the increase provides for continuing City operational and capital needs. Additionally, Cascade Water Alliance wholesale rates are projected to increase 6.2% in 2013. Committee Chair Robertson asked for staff to research the commercial water rates for Seattle and Renton. Sewer. King County will be increasing their monthly sewer rate by 10.22 and their sewer capacity charge for new sewer connections made in 2013 for the next 15 years. Staff is proposing an increase for City sewer fees with residential customers increasing from $19.26 to $23.10 and commercial /industrial increasing from $33.74 to $40.48. The Sewer Enterprise Fund still remains low with the impact of the interfund utility tax and the working capital reserve fund. Staff expressed concern over the health of this fund, as additional revenue and reductions in the CIP projects are not stabilizing the fund, other options were discussed that included suspension or lowering of the Sewer utility tax, a transfer from the General Fund, and reviewing the reserve policy. Committee Members inquired as to how many Allentown sewer connections were still outstanding. Surface Water. Staff is proposing an increase to surface water fees in 2013. Surface Water fees would increase from $102.00 to $107.00 per year for residential parcels. Commercial /industrial properties would increase from $123.17 $1,029.10 to $129.32 $1,080.55. Even with the increase, Tukwila surface water rates remain low compared with other cities. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13 COW FOR DISCUSSION. 141 142 COUNCIL AGENDA SYNOPSIS Initials Meetin Date Prepared by Ma s review Coova review 11/13/12 BG. Resolution Mtg Date Ordinance Mtg Date 11/19/12 BG Other Aft g Date SPONSOR Council Mayor HR DCD ❑Finance ❑Fire IT P&R ❑Police ®PW SPONSOR'S This purchase is for 190 LEOTEK LED roadway lighting luminaires. The latest advances in SUMMARY roadway LED lighting will reduce the power consumption by nearly 50% and provide more reliability and longer life to the light fixtures. This is the second phase of the citywide conversion to LED fixtures. With the remaining budget in Streets and the Annual Signal Program, Council is being asked to purchase 190 LED luminaires in the amount of $94,985.78. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 11/05/12 CONMTTEE CHAIR: ALLAN EKBERG RECOMMENDATIONS: SPONSOR /ADMIN. Public Works Department COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $94,985.78 $94,985.78 $0.00 Fund Source: 104 ARTERIAL STREETS (PG 16, PROPOSED 2013 CIP) Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 ITEM INFORMATION ITEMNO. 5.F. 143 STAFF SPONSOR: BOB GIBERSON ORIGINAL AGENDA DATE: 11/13/12 AGENDA ITEM TITLE Street Department Purchase of 190 LED LEOTEK LED Luminaires CATEGORY Discussion Mtg Date 11/13/12 Motion Mt Date 11/19/12 Resolution Mtg Date Ordinance Mtg Date Bid Award Mtg Date Public Heanng Mtg Date Other Aft g Date SPONSOR Council Mayor HR DCD ❑Finance ❑Fire IT P&R ❑Police ®PW SPONSOR'S This purchase is for 190 LEOTEK LED roadway lighting luminaires. The latest advances in SUMMARY roadway LED lighting will reduce the power consumption by nearly 50% and provide more reliability and longer life to the light fixtures. This is the second phase of the citywide conversion to LED fixtures. With the remaining budget in Streets and the Annual Signal Program, Council is being asked to purchase 190 LED luminaires in the amount of $94,985.78. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 11/05/12 CONMTTEE CHAIR: ALLAN EKBERG RECOMMENDATIONS: SPONSOR /ADMIN. Public Works Department COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $94,985.78 $94,985.78 $0.00 Fund Source: 104 ARTERIAL STREETS (PG 16, PROPOSED 2013 CIP) Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 11/19/12 MTG. DATE ATTACHMENTS 11/13/12 Informational Memorandum dated 11/02/12 (revised after TC) Tacoma Electric Supply Inc Quote LEOTEK Brochure Minutes from the Transportation Committee meeting of 11/05/12 11/19/12 143 ME City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: FROM: By: DATE: Mayor Haggerton Transportation Committee Bob Giberson, Public Works Director Stan Anderson, Street Superintendent November 2, 2012 SUBJECT: 2012 Annual Traffic Signal Program Project No. 91210404 Purchase of 190 LEOTEK LED Luminaires ISSUE Purchase 190 LED roadway lighting luminaires for $94,985.78. BACKGROUND Currently roadway illumination for the City of Tukwila is as high as $190,000 each year in electrical utility costs. The latest advances in roadway LED lighting technology can reduce the power consumption for lighting fixtures by nearly 50 while providing more reliability and longer life to the fixtures. Also, the cost of LED fixtures has been going down over the years and is now only 20% higher than traditional light fixtures. This purchase will be the second phase of our LED streetlight conversion. We should expect to see lower utility costs and reduced maintenance calls as we continue to convert the older lighting fixtures that are on metered accounts throughout the City. The 2012 traffic control budget in both Streets 000.16 and 104 Fund's Annual Traffic Signal Program have remaining balances that can be utilized for this purchase. The 2011 LED purchase was bid by 2 vendors and LEOTEK Electronics was selected based on LED unit cost per fixture. Based on past performance and less inventory, we chose to stay with LEOTEK units, but purchase through a local vendor, Tacoma Electric to simplify the process. BUDGET SUMMARY 000.16.542.640.31.01 Traffic Control Supplies 44,985.78 104.98.595.800.64.00 Annual Traffic Signal Program 50,000.00 Total 94,985.78 RECOMMENDATION Approve purchase in the amount of $94,985.78 for the acquisition of 190 LED roadway lighting fixtures from Tacoma Electric and consider this item at the November 13, 2012 Committee of the Whole meeting and subsequent November 19, 2012 Regular meeting. Attachments: Quote Leotek Brochure W: \PW Eng \PROJECTS\A- RW RS Projects\2012 Annual Traffic Signal Program \Info Memo LED Purchase 10- 26- 12.docx 145 WE. ti TACOMA' 5 U.P INC NAME QUOTATION (Quotation good 30 days) Bid Date;. aLn:. D7r page of B. ShippingPomt F.O.B.: Factory with full freight allowed to destination F.G:B, Destination �2- 5 9 Zer (13 7A V- -J re *Contractor to verify all counts, voltages, wattages, Fini shk dimensions. Allow weeks submittal drawings, and weeks for manufacturing and shipment after ralease and receipt of a roved drawings. Salesman Si nature P.O. Box 11. Tacoma WA 9 1� 08, (253) 475- -0540, Seattle. (206) 824 -9522, Toll Free: (800) 42 -0540 1311 South Tacoma Way, Ta m, A 98409, Sates Fax: (253) 475-0707 ,4c counting Fax: (253) 474 =0092 16202 67th Avenue East, Puyallup, WA 98375, (253) 531 -7335, Fax (253), 531 °8946 r,..____,..,.: nl nA,,- AfC 1 .,,,,•.,,`IAFA nnc-(c Incnt, new n•r:) /nRnl 9C7..O ')R4 I 147 M: With All The Features That Cities Want Philadelphia, PA 1 T d The LED street Light Better Lighting Using Less Energy Leotek Electronics USA presents the GreenCobraT" LED street light enabling cities to achieve significant energy savings AND substantially improve the color and uniformity of their outdoor lighting. The pictures below tell the story of the GreenCobraTM'. Traditional High Pressure Sodium "Cobra Head" style street lights (shown on the left) dump too much yellow light near the pole and spill excessive light behind the pole into neighbor's yards and windows. This is wasted light and wasted energy. At the same time, there are very dark areas in between the poles that can create very hazardous conditions. The picture on the right shows the same street illuminated with the Leotek LED GreenCobra" units. Notice that the light is much more uniform without either the wasted light below the pole or the dark spots in between. Also, most people find the crisp "white light" produced by the LEDs to greatly improve visibility and make it easier to clearly identify colors and details. Alameda, California Before 70W HPS Drop Glass Cobra Heads System Power -95 Watts After 40 LED Leotek GreenCobra' System Power -47 Watts High performance LEDs and precision optical systems: Eliminate hazardous dark spots between poles Substantially reduce wasteful dumps of light directly below the street light Shield unwanted light from trespassing into residential windows Create a highly uniform white light on the roadway enhancing night time visibility Minimize direct uplight from the luminaire AND the reflected light from the roadway which contributes to urban sky glow The Clean Daytime Form With Proven Market Performance The least controversial form will 6e one that matches the existing roadway |urnineins as closely as possible. As the street lights are gradually changed, during the day one neighborhood won't appear different or better than another. This timeless form is ubiquitous and literally disappears from the viewer's consciousness. Unseen and unnoticed, the classic cobra head form is the simple solution for on LED retrofit. Lasting Construction Can Slash Maintenance Costs The days of sending crews out inbucket trucks to change HID street light lamps, ballasts, and starters are over. The GreenCubra street lights carry a5-yemr limited warranty that covers the LEDs, power supplies, finish and all other |umninaire components. However, in all likelihood, these units will burn for well over a decade before any servicing is required. Long Life LEDs are projected to last Rugged power supplies are Fade and abrasive resistant a minimum of 74,000 hours (19 rated to last over 100,000 polyester powder coat finish years) before depreciating to 70% hours (24 years) under normal protects die cast aluminum housing of initial light output. operating conditions. from salt and pollutants for many years. Easy Installation and Tool-Less Electrical Maintenance In case of failure of an electrical component, the entire "power door" ia easily removed and replaced. Also, in the future the |umineiny can be easily upgraded for dimming and control functions. Large wiring chamber, 6d| size terminal block, and quick electrical disconnects assure that installation or servicing can be done ina few minutes. Stainless steel latches allow entry to the |urninaire for maintenance without tools. M 4 Focusing 100% on LED technology, Leotek Electronics was fwumJo6 in 1992 in the heart of Silicon Vo|ley, California. Leotek was instrumental in revolutionizing the traffic signal business and saving cities millions of dollars in energy and maintenance costs while reducing the green house gases required for powering incandescent traffic signals. Today Leotek is the leading supplier of traffic signals in North America having shipped over 4 million units in the last decade. Recognizing the benefits of LEDs over HID sources, in IODG Leotek introduced their first LED street light. Through product innovation and superior service, today Leotek is now a leading supplier of LED street lights in the United States. In 2007, Leotmk was acquired 6y the Lito-On Corporation. This $4 billion electronics company provides financial stability and the customer assurance that Leotek will be around for generations to honor any warranty claims and continue innovating exceptional LED products. 1 114 The Green Cobra is offered in two housing sizes for replacing upto40OW HID street lights. Providing mchoice of eight LED arrays, driven at three current levels, with three different lighting distributions assures that the appropriate light levels can be achieved for each design criteria, mounting height, road width and pole spacing. GC1/GCA1GreenCo6ra"series utilize up to DD LEDs for replacement m;upto 25OVV HID halide luminaires. GC2/G[A2 Green @ngCobra' series utilize upto12O LEDs for replacement ofuptu4OOVVHID Micro-lens optical systems provide Type 2 or Type 3 lighting distributions that typically conform precisely to designated roadway. Optional house- side shield plate can be factory or field installed. The back light strips sharply cut light off mt 8 mounting height behind Brackets are available for mounting luminaires onsquare poles, round poles, post tops and walls. In coastal areas and other environments where birds gather, the optional bird spider can eliminate the problem of unsightly m/oate on the 1 IDA All 74? Information provided subject m change without notice Leotek Electronics USA Corp. I Lite-On Building I K4Upitom CA f City o Tukwila Transportation Committee TRANSPORTATION COMMITTEE Meeting Minutes November 5, 2012 5:15 p.m. Conference Room #1 PRESENT Councilmembers: Allan Ekberg, Chair; Kathy Hougardy and De'Sean Quinn Staff. Bob Giberson, Frank Iriarte, Robin Tischmak, Pat Brodin, Stan Anderson, Gail Labanara and Kimberly Matej CALL TO ORDER: The meeting was called to order at 5:14 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Phase II Streetlight Replacement: 190 LEOTEK LED Luminaries Staff is seeking Council approval to purchase 190 LED roadway lighting luminaires from Tacoma Electric in the amount of $94,985.78. This purchase will be the second phase of the City's LED streetlight conversion (250 watts and below), the first of which took place in 2011. It is unclear how many phases it will take to complete replacement throughout the City. Currently, the City is only replacing metered, City -owned streetlights. LED lighting provides the following benefits: Reduced power consumption (up to 50 Greater reliability Longer life expectancy Reduced maintenance Lower utility costs Funding for this purchase will come from the 2012 Traffic Control in the Streets Division, and the Annual Traffic Signal Program. Staff noted that the pricing of LED fixtures has been steadily decreasing, and the cost of the fixtures is approximately only 20% more than traditional fixtures; however, the cost of 400 watt is still substantially higher. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13 COW FOR DISCUSSION. B. Grant Acceptance: Puget Sound Regional Council Staff is seeking Council approval to accept 2012 federal grant funding from the Puget Sound Regional Council in the amount of $1,000,000 for overlay and repair of East Marginal Way South from South 81" Place to Norfolk Street. Staff applied for this grant funding specifically for preservation of existing infrastructure earlier this year. The required matching funds (minimum 13.5 will be taken from 104 Fund: Bridge and Arterial Streets. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13 COW FOR DISCUSSION. III. SCATBd There was no updated SCATBd information to review. IV. MISCELLANEOUS Committee Chair Ekberg inquired about plans for holiday traffic near Klickitat Drive and State Route 518. Staff responded that meetings to discuss holiday traffic are scheduled with Mall, Police and Public Works representatives. Meeting adjourned at 5:40 p.m. Next meeting: Monday, November 19, 2012 5:15 p.m., Conference Room #1 l Committee Chair Approval Minutes by KAM. Reviewed by GL. 153 154 COUNCIL AGENDA SYNOPSIS Meetin Date Prepare b Mayor's review Cou czZreviesv 11/13/12 BG ❑Resolution Mtg Date E] Ordinance Mtg Date ❑BidAavard Mtg Date 11/19/12 BG SPONSOR Council Mayor HR DCD Finance Fire IT P&R Police PW SPONSOR'S The Puget Sound Regional Council has awarded the City a Federal preservation grant in SUMMARY the amount of $1,000,000.00 to overlay and repair East Marginal Way South from South 81s Place to South Norfolk Street. The City match required by this PSRC grant is 13.5 Council is being asked to accept the grant for East Marginal Way South in the amount of $1,000,000.00. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 11/05/12 COMMITTEE CHAIR: ALLAN EKBERG RECOMMENDATIONS: SPONSOR /ADMIN. Public Works Department COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $1,475,000.00 $1,475,000.00 $0.00 Fund Source: 104 ARTERIAL STREETS (PG 15, PROPOSED 2013 CIP) Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 ITEM INFORMATION ITEMNO. 5.G. 155 STAFF SPONSOR: BOB GIBERSON ORIGINAL AGENDA DATE: 11/13/12 AGENDA ITEM TITLE East Marginal Way South Overlay Repair Accept PSRC Federal Grant CATEGORY ®Discussion Mt Date 11/13/12 ®Motion Mt Date 11/19/12 ❑Resolution Mtg Date E] Ordinance Mtg Date ❑BidAavard Mtg Date F1 Public Hearing Mtg Date Other Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P&R Police PW SPONSOR'S The Puget Sound Regional Council has awarded the City a Federal preservation grant in SUMMARY the amount of $1,000,000.00 to overlay and repair East Marginal Way South from South 81s Place to South Norfolk Street. The City match required by this PSRC grant is 13.5 Council is being asked to accept the grant for East Marginal Way South in the amount of $1,000,000.00. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 11/05/12 COMMITTEE CHAIR: ALLAN EKBERG RECOMMENDATIONS: SPONSOR /ADMIN. Public Works Department COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $1,475,000.00 $1,475,000.00 $0.00 Fund Source: 104 ARTERIAL STREETS (PG 15, PROPOSED 2013 CIP) Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 11/19/12 MTG. DATE ATTACHMENTS 11/13/12 Informational Memorandum dated 11/02/12 Minutes from the Transportation Committee meeting of 05/21/12 Grant Award Notification Email PSRC Regional TIP Project Funding Sheet Page 15, Proposed 2013 CIP Minutes from the Transportation Committee meeting of 11/05/12 11/19/12 155 156 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Transportation Committee FROM: Bob Giberson, Public Works Director BY: Robin Tischmak, City Engineer DATE: November 2, 2012 SUBJECT: East Marginal Way South Overlay Repair— S 81S Place to Norfolk St. Grant Acceptance ISSUE Accept a federal grant in the amount of $1,000,000 for pavement preservation on East Marginal Way South. BACKGROUND The Puget Sound Regional Council (PSRC) had a Call for Projects for the 2012 Federal Funding Programs with applications due on May 11, 2012. The Transportation Committee approved a grant application for pavement preservation on East Marginal Way South at the May 21, 2012 Transportation Committee meeting. The project application was successful and a grant in the amount of $1,000,000 was awarded to the project. DISCUSSION Following is a summary of the approved grant request amount and the award amount from the 2012 PSRC Federal Funding Countywide Preservation grant funds. Funding Amount Amount Project Category Requested Awarded Overlay Repair E Marginal Way S Preservation $1,000,000 $1,000,000 RECOMMENDATION The Committee is being asked to accept the grant award for East Marginal Way South in the amount of $1,000,000 and consider this item at the November 13 2012 Committee of the Whole meeting and subsequent November 19, 2012 Regular Meeting. Attachments: May 21, 2012 Transportation Committee Minutes Grant Award Notification E -mail PSRC Regional TIP Project Funding Sheet WAPW Eng\PROJECTSW- RW RS Projects\2012 Overlay Repair Program (91210401) \East Marginal WayVnto Memo 2012 Grant Award TC 11- 5- 12.docx 157 W. City Of Tukwila 41{ Q 11 Transportation Committee TRANSPORTATION COMMITTEE Meeting Minutes Ma}' 21, 2012 —5:15 p. m. Cogprence Rodin No. 2 *Note Room Change PRESENT Councilmembers: Allan Ekberg, Chair; Kathy Hougardy and De'Sean Quinn Staff: David Cline, Bob Giberson, Frank Iriarte, Robin Tischmak Cyndy Knighton, Jack Pace, Nora Gierloff_ Brandon Miles, Paul Surek, Shelley Kerslake, Peggy McCarthy, Derek Speck Gail Labanara and Kimberly Matej Guests: Chuck Parrish, resident: Paul Fuesel, KPG; Walt Niehoff. LMN Architects: Brianna Holan, LMN Architects: and David McMullen. KPFF CALL TO ORDER: The meeting was called to order at 5:18 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Tukwila Urban Center: PedestrianBicvcle Bride As information only, staff presented information to the Committee regarding architectural selections for the Tukwila Urban Center pedestrian/bicycle bridge. A PowerPoint presentation outlined the processes of determining trail alignments, approaches and bridge designs. The Committee asked pertinent questions including right -of -way needs, parking requirements, and identified users. Staff reported that the project plans will be at 30% completion by October, with final design anticipated in fall 2013. Staff showed a 3 -D model of a draft bridge design. Committee Members suggested the model be made available at a Council meeting so that remaining Councilmembers could vietiv it. The Committee Members were complimentary of what has been presented to date. INFORMATION ONLY. B. Grant Applications for State and Federal Funds: PSRC 2012 Call for Projects Staff is seeking Committee approval to apply for four grants, three of which have already been submitted and one which is forthcoming. As a result of an overlooked deadline, staff submitted applications to the 2012 Puget Sound Regional Council (PSRC) Federal Funding Program prior to receiving Committee approval. The applications were due by 5:00 p.m. on May 11, 2012, and reflect existing projects that are in the City's CIP, familiar to Council, and have been submitted for previous grant funding. The funding requests total $6,736,080 for three projects sidewalks.. pavement restoration, lighting and drainage on Interurban Avenue South: overlay on East Marginal Way South; and the `Street Smart" non motorized project for the North Tukw1la Manufacturing Industrial Center. If funds are awarded, the Council does have the ability to decline the funding. Committee Chair Ekberg emphasized the importance of staff tracking grant deadlines so that Council and Committee processes can be followed. Additionally, staff is seeking Committee approval to apply for grant funding this summer through the State Transportation Improvement Board in the amount of $4 million for the Interurban Avenue South project mentioned above. COMMITTEE APPROVAL. APPLY FOR GRANT. 159 Transportation Committee Minutes May 21, 2012 Pape 2 C. Development Agreement Procedures Staff is seeking Committee approval to forward a draft ordinance relating to procedures for development agreements to the Planning Commission for review and recommendation to full Council. Incorporating language into the Tukwila Municipal Code (TMC) will provide greater transparence and set expectations for such agreements; essentially, codifiing current processes and past practice. It will address broad sections of TMC Chapter 18 relating to the zoning code. FORWARD TO PLANNING COMMISSION FOR REVIEW AND RECOMMENDATION. III. SCATBd No report scheduled for Committee. IV. MISCELLANEOUS Meeting ac�journed at 6:01 p.m. Next meeting: Monday, June 4, 2012 5:15 p.m. Conference Room #I Z- Committee Chair Approval Minutes by KAAI. Reviewed by GL. 8 Robin Tischmak From: Bob Giberson Sent: Thursday, July 19, 2012 11:04 AM To: Robin Tischmak Subject: FW: PSRC's Regional and King County Countywide Project List Attachments: KCPEC 2012 Recommendation Final 6 14 12 Regional.pdf, KCPEC 2012 Recommendation Final 6 14 12 Countywide.pdf From: Takamine, Paul [mailto:Paul.Takamine(a kingcounty.govl Sent: Wednesday, July 18, 2012 2:09 PM To: Barry Ladenburg; Bob Sheckler; Bob Sheckler; Brian Ziegler; 'Charlie Howard'; Dave Hill; 'Dick Ford'; Don Meyer; Allan Ekberg; Elizabeth Albertson; 'Gary Hulsey'; 'Gary Hulsey'; Jack Block; Jeanette Burrage; 'Jeanne Burbidge'; Jim Haggerton; 'John Daniels'; 'Kelly Hayden'; Leavitt, Elizabeth; Lewis, Pete; 'Liz Reynolds'; Marcie Palmer; 'Noel Gerken'; Patterson, Julia; Stacia Jenkins; Stacy Trussler; Steve Gorcester; Taylor, Bart; Terry Davis; von Reichbauer, Pete; Wayne Snoey; Wayne Snoey; Arkills, Chris; Atherton, Emiko; 'Boettcher, Seth'; Clarke Brant; 'Cooke, Suzette'; 'Cummings, Mike'; Dave Kaplan; 'Drollinger, Michael'; 'Elkins, Marcie'; 'Fredricks, Grant'; 'Griffith, Reema'; 'Guier, Leanne'; 'Guier, Leanne (2)'• 'Gut Tom'; 'Hooper, Tom'; 'Jonas Victoria Laise'• 'Laise Jonas Victoria (2)'• 'Lee Tina'; Mayor Debra Per McClure AJ; 'McGourty, Kelly'; 'Osborn, Lynda'; 'Osborn, Lynda (city)'; Peloza, Bill; 'Persson, Don'; 'Prestrud, Charles'; 'Pulliam, Julie'; 'Searcy, Chris'; Vondran, Don' Cc: 'Bender, Jeff; 'Bergman, Mike'; Bob Giberson; 'Brackett, Ben'; 'Brewer, Dan'; Carlson, Paul; 'Chipps, Eric'; Chris Searsy; 'Clark, Steve'; 'Craig Stone'; Don Vondran; 'Doug Levy'; 'Dowdy, Dennis'; Edwards, Wesley; 'Hardy, Patrice'; Heffernan, Peter; 'Howell, John'; 'Jesse Hamashima'; 'Landry, Peter'; 'Laporte, Tim'; Lattemann, Jack; Lindwall, Jennifer; 'Madsen, len'; Maiya Andrews; Marks, Sally; 'Mooney, Cathy'; OClaire, Christina; Osborne, Jay; Oxholm, Susan; Pablo Para; 'Pazooki, Ramin'; 'Perez, Rick'; 'Perteet, Rich'; Resha, John; Robin Tischmak; 'Rossi, Stephanie'; 'Sanderson, Sue'; 'Seitz, Jim'; Shafer, Lisa; 'Smith, Rachel'; 'Steve Mullen'; 'Switzer, Jeff; Takamine, Paul; 'Thomas Noyes'; Robin Tischmak; 'Washington, Tom'; 'Wolterink, Lisa'; Wooters, Agnes; 'Zimmerman, Gregg' Subject: PSRC's Regional and King County Countywide Project List Attached are the Regional and King County Countywide project lists that were reviewed by the Transportation Policy Board at their July 12 meeting. The King County Countywide project list includes information on the "total grant request the "recommended grant amount" and a "total project cost amount At that meeting the TPB recommended the PSRC Executive Board approved the Regional and King County Countywide list (Snohomish, Pierce, and Kitsap counties Countywide project lists are not included in this email). Please call me if you have any questions, thanks. Paul Takamine Office of Regional Transportation Planning King County Department of Transportation 201 South Jackson Street Seattle, WA 98104 Phone: (206) 684 -1417 Fax: (206) 684 -2129 161 N O N I h my C O Y0 r 0 D o U o U d .Q lC 1 a N M r d► C O A C d O V d d' R Of O IL c 0 eo Z m 9 a 0 N O O 162 N 0 N W n 0 N O 163 M i Cl d d O N O O O O O Of Of O O O Ea. on v ID n u W0 O F f9 69 tf to fA 9 d O O w D S C 7 M aN0 N M E E E �a m en u> us .4 w rn V v v o 0 Ct 0 o 0 u O W M N M V LL Q LL d 6R IA !A tH IA cn IL t N V cn c F I F F I c O If y N to to N (n 7 N N C as N V C N O m O N y L w Q a L N C LL L) d Q C D c m Z E m A c E aci Z m y 'o w a Y N r m c E LL O y W O fA N c m f CO y C O O> m N '6 E m m N M O e N C m m E t N E C O t L dfn tmn 8 O� fq A m' d Q Ow f° CL o' c12 om� 2 c O mZ o vN a b E y< 0 o a o C aLL 0 w w E °c Eoc E U) rna�� u,mc O C E N C C 0 0 0 C Sc c C M L) c y y CF. tm Q C O c cm c O d cai o'�°a'O oo��� -EJ ro ;o RE mNa°i.3Q� aiE' 'C S I d N U O O d N m y Q Q m pA N N N C m 0-3 .0 N c m O` 4) m A Q ry C j C y t y> m m 5 N W m N m y m v) zt m 5 I m o 05 m m d CD (D c N m d LL Y O U) o O c Q o fA LL m m'o C m fn O y Z5 O L W i l0 O y N O V Y y N 2 V d p cg. m ti c y cn T N O m 3� d •o OLLO mo 'ma m O 'fl S m r dot y m m m L M> m m E E L> m c >•NQ t° ELE L 0 or"' m o.o CQ L m m o Zm o CL _w m U) P e c L) in E cn LLI v v E o o a m a m a o ]C Z in 2 V d� N M 10 a` O O w N 9 C m m Q E rn 0 a 0 Z d a Q m O O b w m a N O H L Y .N C U m o O o a) N N r m f» L a o c 0 0 c U- N N 69 t O c N U U m O W rn C C co LL J O o O 0 C 0 o I- M V' O 0 0 o LO O O C) o C U:l o O 0 o o c Cl) LO UDI O O O O O 01 o o 'o O 10 N O H al Z IL a) W a) U Y N R O Z U) Y c d F E c O c W rn C U C O Z m cr .;s c a) U IOU U T m d C a1 c N U) d 0 T 0) R o E O CL O li Q.' Q Z y T d U c w a) 0. H IT-W, O O Cl) a O o N a) O 0 D U 0 3 a) O c B O d O C m Cl) M U) Q W is a) c_ r d' C C D. O) O a Q U Q U c V L O U c O a) m M d o N Q d c o C o Q co a) a) E E O m N RS a N N N Z O> W y. LO o Q a U co L —'0 c a a) E z a) a E m d. m O U a) Q L C E m Y W a) E m a) E U) d x y Q C m N_ ID o E c :aa_ U w a a 4) U Z g a c`o Q C C is vi W o a) L E a) O N N m N c 0 a) U {1S L CL O L1.1 c) i d O N d F IL a) m LL LL LL J w IT-W, O a U N a) �Y 0 C O U 3 a) O c B O d O C 4) -a Q a) c_ C C D. O) O a Q U U c N c a) c T a) m L N Q o Q c a) a) a) E E O m N a Q a N c —'0 c a a) E z a) a m O_ C O Y E m a) E O c D O C m N_ ID L C c to m c 4) U E O o a) L E a) C O O- N a) t a) m a) C a) N c Q O U E i U C 7 O m O a 'oEU L U d N N N U r 1- c rn IT-W, CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2013 to 2018 PROJECT: Overlay and Repair East Marginal Way S Project No. 91210406 DESCRIPTION: Construct pavement preparation and an asphalt overlay of East Marginal Way South between S 81st PI and S Norfolk Street, including new pavement markings. Preserve and maintain the street structure in a safe and useable state by resurfacing before failure, to JUSTIFICATION: minimize costs. STATUS: New project for 2013 2018 CIP. MAINT. IMPACT: Reduces annual maintenance. COMMENT: Federal grant funding available through PSRC 2012 STP /CMAO for $1,000,000.00 FINANCIAL Through Estimated /in annn•ci gn11 2012 2013 2014 2015 2016 2017 2018 BEYOND TOTAL EXPENSES Design 125 125 Land (R/W) 0 Const. Mgmt. 150 150 Construction 1,200 1,200 TOTAL EXPENSES 1 01 01 1,475 1 01 01 01 01 01 01 1,475 FUND SOURCES Awarded Grant 0 Proposed Grant 1,000 1,000 Mitigation Actual 0 Impact Fees 0 City Oper. Revenue 0 0 475 0 0 0 0 0 0 475 TOTAL SOURCES 01 01 1,475 01 01 01 01 01 01 1,475 Project Location a s 2013 2018 Capital Improvement Program 15 a City of Tukwila Transportation Committee TRANSPORTATION COMMITTEE Meeting Minutes November S, 2012 5:15 p.m. Conference Room #1 PRESENT Councilmembers: Allan Ekberg, Chair; Kathy Hougardy and De'Sean Quinn Staff: Bob Giberson, Frank Iriarte, Robin Tischmak, Pat Brodin, Stan Anderson, Gail Labanara and Kimberly Matej CALL TO ORDER: The meeting was called to order at 5:14 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Phase II Streetlight Replacement: 190 LEOTEK LED Luminaries Staff is seeking Council approval to purchase 190 LED roadway lighting luminaires from Tacoma Electric in the amount of $94,985.78. This purchase will be the second phase of the City's LED streetlight conversion (250 watts and below), the first of which took place in 2011. It is unclear how many phases it will take to complete replacement throughout the City. Currently, the City is only replacing metered, City -owned streetlights. LED lighting provides the following benefits: Reduced power consumption (up to 50 Greater reliability Longer life expectancy Reduced maintenance Lower utility costs Funding for this purchase will come from the 2012 Traffic Control in the Streets Division, and the Annual Traffic Signal Program. Staff noted that the pricing of LED fixtures has been steadily decreasing, and the cost of the fixtures is approximately only 20% more than traditional fixtures; however, the cost of 400 watt is still substantially higher. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13 COW FOR DISCUSSION. B. Grant Acceptance: Puget Sound Regional Council Staff is seeking Council approval to accept 2012 federal grant funding from the Puget Sound Regional Council in the amount of $1,000,000 for overlay and repair of East Marginal Way South from South 81" Place to Norfolk Street. Staff applied for this grant funding specifically for preservation of existing infrastructure earlier this year. The required matching funds (minimum 13.5 will be taken from 104 Fund: Bridge and Arterial Streets. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13 COW FOR DISCUSSION. III. SCATBd There was no updated SCATBd information to review. IV. MISCELLANEOUS Committee Chair Ekberg inquired about plans for holiday traffic near Klickitat Drive and State Route 518. Staff responded that meetings to discuss holiday traffic are scheduled with Mall, Police and Public Works representatives. Meeting adjourned at 5:40 p.m. Next meeting: Monday, November 19, 2012 5:15 p.m., Conference Room #1 C Committee Chair Approval Minutes by KAM,, Reviewed by GL. 167 p COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared b Ma orlf review C n ')"review 11/13/12 PMC ❑Resolution Mtg Date ❑Ordinance Mtg Date 11/19/12 PMC Other Mt g Date SPONSOR Council Mayor HR DCD Finance Fire IT P&'R Police PW SPONSORS City Council is being asked to approve an interlocal agreement with the Tukwila SUMMARY Metropolitan Park District for repayment of a $1 million loan, proceeds of which would be obtained by the City through issuance of bonds. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR /ADMIN• Finance Department Commi "TEE COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $1,000,000 $0 $1,000,000 Fund Source: METROPOLITAN PARK DISTRICT Comments: Revenue backed expenditure; debt service paid by Tukwila Metropolitan Park District MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 ITEM INFORMATION ITEM NO. 5.H. Eby STAFF SPONSOR: PEGGY MCCARTHY ORIGINAL AGENDA DATE: 11/13/12 AGENDA ITEM TITLE An interlocal agreement with the Metropolitan Park District for a $1 million loan and loan repayment. CATI3GORY ®Dircurrion Mtg Date 11113/12 ®Motion Altg Date 11119112 ❑Resolution Mtg Date ❑Ordinance Mtg Date ❑Bid Award g Date Mt ❑Public Hearing Mt g Date Other Mt g Date SPONSOR Council Mayor HR DCD Finance Fire IT P&'R Police PW SPONSORS City Council is being asked to approve an interlocal agreement with the Tukwila SUMMARY Metropolitan Park District for repayment of a $1 million loan, proceeds of which would be obtained by the City through issuance of bonds. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR /ADMIN• Finance Department Commi "TEE COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $1,000,000 $0 $1,000,000 Fund Source: METROPOLITAN PARK DISTRICT Comments: Revenue backed expenditure; debt service paid by Tukwila Metropolitan Park District MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 MTG. DATE ATTACHMENTS 11/13/12 Informational Memorandum dated 11/07/12 regarding Interlocal Agreement Interlocal Agreement Informational Memorandum dated 11/1/12, modified 11/7/12 regarding Bond Issuance 11/19/12 Eby 170 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance Safety Committee FROM: Peggy McCarthy, Interim Finance Director DATE: November 7, 2012 SUBJECT: Interlocal Agreement with Tukwila Metropolitan Park District ISSUE Consider for approval a draft Interlocal Agreement between the City of Tukwila and the Tukwila Metropolitan Park District to establish the terms and conditions for the repayment of a proposed loan from the City of Tukwila to the District; proceeds for the loan would be obtained through the City's issuance of bonds on behalf of the Park District to fund Pool Capital Improvements. The Agreement is presented for Council's review and approval and will be presented to the Park District Board of Commissioners for review and approval at the November 19, 2012 MPD meeting. BACKGROUND The City of Tukwila proposes a bond issuance on behalf of the Park District to fund Pool Capital Improvements. Under this proposal, the City of Tukwila would loan the proceeds of the bond issuance to the Park District. The Park District would repay the loan from fund operations and general taxes levied by the Park District. DISCUSSION As documented in the interlocal agreement, the City agrees to lend funds from the proceeds of a bond issuance to the Park District Fund, not to exceed $1,000,000. The Park District agrees to assume and accept the financial obligation to repay the loan in amounts and on dates corresponding with the underlying bond debt service payment schedule. Although the ILA needs to precede the bond issuance, it is important for the Council to understand the bond issuance specifications. Therefore, a copy of a memo regarding bond issuance has been included as an attachment for information only. The Council will not be asked to discuss the bond issuance until the November 26 Committee of the Whole. RECOMMENDATION The Council is being asked to consider the City of Tukwila Tukwila Metropolitan Park District Interlocal Agreement at the November 13, 2012 Committee of the Whole Meeting and subsequent November 19, 2012 Regular Meeting. ATTACHMENTS Interlocal Agreement Informational Memorandum dated 11/1/12, modified 11/7/12 regarding Bond Issuance 171 172 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: FROM: DATE: SUBJECT ISSUE Mayor Haggerton Finance and Safety Committee Peggy McCarthy, Finance Director November 1, 2012 November 7, 2012 AMENDED AFTER FINANCE SAFETY Bond Issuance for Metropolitan Park District Approve the proposed financing method and accompanying schedule for funding the Tukwila Metropolitan Park District (MPD) capital improvements. BACKGROUND The MPD is beginning a major capital project to renovate the Tukwila pool, its primary asset. Financing options have been researched and presented to the MPD Board of Commissioners for consideration over the past months. At the October 15, 2012 MPD meeting, approval was received from the Board to move forward with a bond issuance by the MPD with a City guarantee. Subsequent to the October 15 meeting, the City guarantee was discussed with Alice Ostdiek of Foster Pepper PLLC, the bond counsel for the City and the MPD. A recent ruling by the Washington Supreme Court concerning a debt guarantee by the City of Wenatchee concluded in part that, "public guarantee of debt is legally equivalent to a public debt." Ms. Ostdiek pointed out that, should the bonds be issued by the City on behalf of the MPD, the issuance would have the advantage of the City's credit rating. DISCUSSION The City has two options for assisting the MPD with the capital improvement financing. The first option, which was discussed at the October 15, 2012 Board of Commissioner meeting, is for the MPD to issue bonds with a City guarantee. The terms of the guarantee would be documented in an interlocal agreement between the City and the MPD. 2. The second option is to have the City issue the bonds, loan the bond proceeds to the MPD, then have the MPD pay back the loan in amounts equal to the debt service on the bonds. This essentially would be a pass through of the debt to the MPD by the City. The terms of the loan and repayment would be documented in an interlocal agreement between the MPD and the City. Staff recommends utilizing the second option due to its clarity, and it ensures the City's credit rating will be fully considered in pricing the bonds. The following table provides general elements of each option. 173 INFORMATIONAL MEMO Page 2 Elements of Bonding Options Option 1 Option 2 Entity issuing bonds District City City guarantee required on bonds Yes No n/a Method by which District receives proceeds Through bond underwriting process From City upon issuance of bonds Interlocal Agreement required to document loan and repayment terms No n/a Yes City's bond rating used to price bonds Possibly Yes Bond issuance achieved in 2012 Unlikely Yes In order for the bonds to be issued in 2012, the following schedule must be met: Council COW Meeting, November 12th Council Regular Meeting November 19 MPD Meeting November 19 Council COW Meeting, November 26 Council Meeting December 3 Regular December 18 or 19 December 31 Consider the financing interlocal agreement Approve the financing interlocal agreement Approve the financing interlocal agreement Consider the bond ordinance Approve the bond ordinance Bond pricing Bond closing FINANCIAL IMPACT No net financial impact to the City. RECOMMENDATION The Finance and Safety Committee is being asked to approve the proposed financing structure and accompanying schedule for funding the Metropolitan Park District capital improvements. A. It is advantageous for the City to issue the bonds in 2012 rather than 2013. If annual bond issuances for a municipality are less than $10M, the bonds can be considered "bank qualified" and receive a more favorable interest rate. Since the City intends to issue approximately $8.5M bonds in 2013, it is prudent to issue these bonds in 2012. B. The bond issuance schedule for the City is very tight; should bonds be issued directly by the District rather than by the City, the administrative efforts to issue bonds for a new entity, with a repayment guarantee by another municipality, may prohibit bond issuance by the end of the year 2012. C: ?1 ernpicontent.OutlooktCBK00fiG Jilrifo Menno Pv1PD debt REVISED 11 -7 -12 (2).doc 2912�11,,r„ Me -B4�e{ 174 Amc�4 m&W24Q-7F;WAL- DRAFT DATED 1118112 INTERLOCAL AGREEMENT by and between CITY OF TUKWILA and TUKWILA METROPOLITAN PARK DISTRICT This Agreement, dated as of 2012, is entered into by and between the City of Tukwila, Washington (the "City a code city organized under the laws of the State of Washington, and the Tukwila Metropolitan Park District "TMPD a municipal corporation organized under the authority of Chapter 35.61 RCW (collectively, the "Parties This agreement is entered into under the authority of RCW 35.61.290, .300 and 67.20.010. NOW, THEREFORE, the Parties agree as follows: Section 1. Recitals Purpose of Agreement 1.1. The City of Tukwila is a code city operating under chapter 35A RCW and other applicable state law, and the Tukwila Metropolitan Park District is a municipal corporation created pursuant to a vote of the people held in August 16, 2011 under chapter 35.61 RCW with responsibility for ownership and operation of the Tukwila Pool. 1.2. The City and the TMPD are in need of funds with which to undertake needed improvements, repairs and upgrades to the pool and related facilities owned and operated by the TPMPD (the "Pool Improvement Project" or the "Project all as more specifically described in Exhibit A, which is incorporated by this reference. 1.3. RCW 67.20.010 authorizes "Any city any separately organized park district... shall have power, acting independently or in conjunction with... [any] city, [or] park district to build, construct, care for, control, supervise, improve, operate and maintain parks, playgrounds, gymnasiums, swimming pools, field houses and other recreational facilities... 1.4. RCW 35.61.290 authorizes the City and the TMPD to "enter into an agreement embodying such terms and conditions of any such grant or loan [to provide for the continuous operation, maintenance and /or improvement of metropolitan park district property] as may be mutually agreed upon." 1.5. The City Council finds that is likely to result in the lowest cost of borrowing and is in the best interests of the City to issue bonds and to loan the proceeds of those bonds to the TMPD to carry out the Pool Improvement Project. 1.6. RCW 35.61.100 provides that the limitation on nonvoter approved general obligation indebtedness is equal to 0.25% of the value of the taxable property in the metropolitan park district, which available debt capacity is currently $11,509,975.65, based on the 2012 assessed valuation of $4,603,990,258. The TMPD currently has no nonvoter approved general obligation indebtedness outstanding. The indebtedness created under this Agreement is incurred within the TMPD's available debt capacity. 51256695.1 1 175 DRAFT DATED 1118112 1.7. The Tukwila City Council has adopted Ordinance authorizing the issuance of not to exceed $1,000,000 Limited Tax General Obligation Bonds, 2012 and the execution of this Agreement to provide for the financing of the Pool Improvement Project. 1.8. The TMPD Board has adopted Resolution No. authorizing the execution of this Agreement and acknowledging the City's intent to provide financing for the Pool Improvement Project, including issuing general obligation bonds, the principal of and interest on which is expected to be reimbursed by the TMPD Payments received under this Agreement. Section 2. Definitions. For purposes of this Agreement, the following words shall have the following meanings, unless another meaning is clearly intended. Capitalized terms not defined below shall have the meanings given in the Bond Ordinance. "Agreement" means this Interlocal Agreement for the funding of the Tukwila Pool Improvement Project, entered into by and between the City and TMPD under the authority of RCW 35.61.290 and 67.20.010. "Bond Counsel" means a firm of nationally recognized Bond Counsel selected by the City. "Bond Ordinance" means Ordinance No. of the City of Tukwila authorizing issuance of the City's Limited Tax General Obligation Bonds, 2012 (Pool Improvement Project). "Business Day" means any day that is not a Saturday, Sunday, holiday or other day on which commercial banking institutions in Washington state are authorized or obligated by law or executive order to be closed. "City" means the City of Tukwila, Washington. "Code" means the Internal Revenue Code of 1986, as amended, together with all administrative rulings and regulations promulgated or issued thereunder. "Debt Service Payment" means any payment of principal or interest (or both) with respect to Pool Improvement Project Bonds plus any premium, prepayment penalty, credit enhancement, remarketing or similar fee coming due and payable on any principal or interest payment date and not paid on issuance of the bonds. "Gross TMPD Revenues" means all taxes, fees, charges and other revenues received by TMPD from any source whatsoever. "Pool Improvement Project" or "Project" means the Tukwila Pool Improvement Project described in Exhibit A and incorporated by this reference. "Pool Improvement Project Bonds" the City's Limited Tax General Obligation Bonds, 2012, authorized by the Bond Ordinance. 51256695.1 2 176 DRAFT DATED 1118112 "Parties" means the City and TMPD. "Tukwila Metropolitan Park District" or "TMPD" means The Tukwila Metropolitan Park District, a municipal corporation created pursuant to chapter 36.120 RCW and a vote of the people held on August 16, 2011. "TMPD Board" means the governing board of TMPD. "TMPD Payment" means one or more payments made by TMPD under this Agreement to fund the City. Section 3. TMPD Responsibilities. 3.1. TMPD Payments TMPD agrees to make TMPD Payments to the City from Gross TMPD Revenues at the times in the amounts set forth in Exhibit B, which is incorporated by this reference. TMPD shall make each TMPD Payment to the City by wire transfer or other electronic transfer on each June 1 and December 1. The City is not required to bill TMPD for these payments. If any payment date is not a Business Day, the payment shall be due and payable on the next preceding Business Day. Prepayments may be made by the TMPD only pursuant to a defeasance plan agreed to in writing by both Parties. If TMPD fails to make any TMPD Payment in a timely manner, its obligation to make that payment shall accrue interest at the rate of investment earnings on the City's consolidated cash pool until the TMPD Payment and the interest accruing under this subsection are fully paid. 3.2. Pledge of Gross TMPD Revenues For so long as any Pool Improvement Project Bonds remain outstanding, TMPD irrevocably pledges to levy and collect the taxes and to collect the other revenues included in Gross TMPD Revenues in an amount sufficient, together with other money legally available for this purpose, to make when due all TMPD Payments under this Agreement. TMPD agrees that the City may (but is not required to) rely on this pledge and may offer it as security for Pool Improvement Project Bonds. 3.3. TMPD Covenants For so long as any Pool Improvement Project Bonds remain outstanding, TMPD will not create or suffer to be created any lien against Gross TMPD Revenues that is prior and superior to the lien created or contemplated in connection with this Agreement. Further, TMPD will not issue indebtedness or incur any obligations payable from Gross TMPD Revenues unless and until it has given due regard to its ability to meet its obligations under this Agreement and all other outstanding obligations. As used in this Subsection 2.3, "due regard" has the same meaning as it is given in the context of RCW 39.46.150. Section 4. City Responsibilities. 4.1. Application of TMPD Payments The City agrees to apply all amounts received as TPMPD Payments solely: (1) to pay or reimburse the City for costs of the Pool Improvement Project not expected to be paid with bond proceeds; or (2) to make Debt Service Payments on Pool Improvement Project Bonds, or to refund or defease such bonds (including, without limitation, paying costs of issuance, purchasing securities for the funding of any defeasance escrow and administrative costs associated with a refunding or defeasance, if any). If and to the 51256695.1 3 177 DRAFT DATED 1118112 extent that amounts allocable to TMPD Payments remain in a Pool Improvement Project debt service fund or account after the Pool Improvement Project Bonds are no longer outstanding, such amounts shall be applied to additional costs of the Pool Improvement Project or as otherwise directed in the Bond Ordinance, consistent with applicable law. 4.2. Pool Improvement Project Bonds The City agrees to issue Pool Improvement Project Bonds to finance the Pool Improvement Project. Timing of any such issuance is at the sole discretion of the City. The City may in its sole discretion issue bonds that refund Pool Improvement Project Bonds. Any such refunding bonds issued by the City under this section shall be treated as "Pool Improvement Project Bonds" for all purposes of this Agreement, and the terms and conditions of this Agreement shall remain in full force and effect. 4.2.1. Description of Pool Improvement Project Bonds. Pool Improvement Project Bonds may be issued as general obligation bonds, may be secured (in whole or in part) by the pledge of TMPD in Section 2.2 of this Agreement, and may be combined with any other series of bonds issued by the City. Pool Improvement Project Bonds shall have a final maturity date no more than 20 years after their date of issuance; shall bear interest at the rates and on the basis set forth in the Bond Ordinance; and may be subject to such optional and mandatory redemption provisions and other terms (including but not limited to credit enhancement devices) as the City deems necessary or convenient. 4.2.2. Application of Bond Proceeds. If and when it does issue Pool Improvement Project Bonds, the City agrees to apply the proceeds, after payment of costs of issuance, solely to the Pool Improvement Project and related costs. 4.2.3. Allocation of TMPD Payments. As described in Section 3.1, the City expects that a portion of the TMPD Payments may be used for Debt Service Payments and a portion may be applied to ongoing costs of the Pool Improvement Project. In light of this, the City may at any time make an allocation indicating what portion of TMPD Payments will be used for Debt Service Payments on that issue, and only that portion of TMPD Payments shall be treated as "pledged funds" within the meaning of the Code. To the extent that TMPD Payment amounts are in excess of the amount necessary to meet the allocated portion of Pool Improvement Project Bond Debt Service Payments, such amounts shall not be considered pledged to the Pool Improvement Project Bonds and may be used for capital costs of the Pool Improvement Project that are not expected to be financed with bond proceeds. Section 5. Tax Exemption; Continuing Disclosure. 5.1. Tax Exemption It is the intention of TMPD and the City that interest on any Pool Improvement Project Bonds will be and remain excluded from gross income of the owners of those bonds under federal tax law. To that end, TMPD covenants that it has not taken or permitted to be taken and will not take or permit to be taken any action that will cause the interest on the Pool Improvement Project Bonds to become included in gross income for federal tax purposes pursuant to the Code or to become "arbitrage bonds" within the meaning of Section 148 of the Code. TMPD acknowledges and agrees that Bond Counsel to the City will rely upon the facts, estimates and circumstances in existence on the issue date and the reasonable expectations of TMPD as to future events respecting TMPD Payments to enable them to 178 512566951 4 DRAFT DATED 1118112 conclude that the Pool Improvement Project Bonds are governmental obligations the interest on which is excluded from gross income for federal income tax purposes under Section 103 of the Code. By virtue of this covenant to comply with future laws or regulations, TMPD does not intend nor shall either be deemed to waive any rights or defenses that it may have to contest the application of such laws or regulations to the Pool Improvement Project on the grounds that such application would constitute a prohibited impairment of contract or on any other applicable grounds. Nevertheless, while contesting the application of any such laws or regulations, TPMPD shall take such actions deemed necessary in the opinion of Bond Counsel to maintain the exclusion from gross income of interest on the Pool Improvement Project Bonds. TMPD's responsibilities under this section shall be limited to actions within its control. None of the covenants and agreements herein contained shall require TMPD to enter an appearance or intervene in any administrative, legislative or judicial proceeding in connection with any changes in applicable laws, rules or regulations or in connection with any decisions of any court or administrative agency or other governmental body affecting the taxation of interest on the Pool Improvement Project Bonds. 5.2. Official Statement The Parties acknowledge that the City may participate in preparing an official statement or other offering document in connection with the offer and sale of the Pool Improvement Project Bonds. To the extent that the TMPD Payments are pledged to repayment of the Bonds, TMPD agrees to cooperate with the City in providing such information as may be necessary for inclusion in the document and further agrees to certify that the information pertaining to TMPD and presented in such document is fair and accurate. 5.3. Continuing Disclosure To the extent that Rule 15c2 -12 (the "Rule of the United States Securities and Exchange Commission (the "SEC requires TMPD, as an "obligated person," to provide a written undertaking (the "Undertaking for the benefit of the holders of the Pool Improvement Project Bonds, TMPD agrees to execute such a written Undertaking prior to the issue date of the Bonds. For purposes of this Undertaking, the term "holders of the bonds" shall have the meaning intended for such term under the Rule. Section 6. Miscellaneous. 6.1. Term of Agreement This Agreement shall take effect as of the date first written above and shall expire when all TMPD Payments due under the TMPD Payment schedule in Exhibit B have been paid in full, including all interest due on delinquent payments. Binding Effect; Assignment; Third Party Beneficiaries Neither Party may assign its interest or obligation under this Agreement without the prior written consent of the other Party, except that the City may at its sole option pledge its interest in the TMPD Payments for the benefit of owners of Pool Improvement Project Bonds as provided in Section 2.2. This Agreement shall inure to the benefit of and shall bind the respective assignees. There are no other third party beneficiaries of this Agreement, and its terms are not intended to establish nor to create any rights in any persons or entities other than the City, TPMPD, and the respective successors and assigns of each. 6.3. Amendments; Reliance No amendment of any provision of this Agreement is valid unless set forth in a written amendment signed by the Parties. The Parties acknowledge that 51256695.1 5 179 DRAFT DATED 1118112 the City will issue the Bonds in reliance on this Agreement. If Pool Improvement Project Bonds are rated by a rating agency, then no amendment shall be permitted unless written confirmation from each rating agency has been obtained to the effect that the proposed amendment will not result in a reduction or withdrawal of the rating on the Pool Improvement Project Bonds. If the Pool Improvement Project Bonds are not rated by a rating agency, then no amendment will be permitted unless, in the opinion of Bond Counsel to the City, such amendment will not adversely affect the owners of the Pool Improvement Project Bonds. 6.4. Waiver No provision of this Agreement may be waived except if expressly given in writing, and no implied or oral waiver may be used to materially impair the force and effect of any substantive provision of this Agreement. Any waiver of a Party's right with respect to a default under this Agreement, or with respect to any other matter arising in connection therewith, shall not be deemed a waiver with respect to any subsequent default or matter. 6.5. Severability In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 6.6. Applicable Law and Venue This Agreement shall be governed by the laws of the State of Washington. The venue for any legal action arising from a dispute under this Agreement is the Superior Court for King County. 6.7. Entire Agreement This Agreement constitutes the entire and exclusive agreement between the Parties relating to the specific matters covered in this Agreement. All prior or contemporaneous oral or written agreements, understandings, representations or practices relative to the foregoing are superseded, revoked and rendered ineffective for any purpose. This Agreement may be altered, amended or revoked only as set forth in Section 5.3. No oral agreement or implied covenant may be held to vary the terms of this Agreement, any statute, law or custom to the contrary notwithstanding. 6.8. Time of the Essence Time and all terms and conditions shall be of the essence of this Agreement. 6.9. Notices All notices required to be in writing shall be given using the notice addresses in this section. A Party may designate a different notice address by providing written notice to the other Party. If to TMPD: MPD Board President c/o Rick Still, Parks and Recreation Director 1242442 d Avenue South Tukwila, WA 98168 Telephone: 206 767 -2344 Email: Rick.Still @TukwilaWA.gov 51256695.1 6 180 DRAFT DATED 1118112 If to the City: The City of Tukwila Department of Finance 6200 Southcenter Blvd. Tukwila, WA 98188 Telephone: 206-433-1835 Email: Peggy.McCarthy @TukwilaWA.gov 6.11. Execution in Counterparts This Agreement may be executed in one or more counterparts. The Parties agree to execute a release or other appropriate instruments as shall be necessary to certify compliance with the terms of this Agreement upon full and complete satisfaction of the terms of this Agreement. 6.11 Indemnification of the City The Park District shall indemnify and hold City and its agents, employees, and/or officers, harmless from and shall process and defend at its own expense any and all claims, demands, suits, at law or equity, actions, penalties, losses, damages, or costs, of whatsoever kind or nature, brought against City arising out of, in connection with, or incident to the making of the Loan that is the subject of this Agreement and/or Park District's performance or failure to perform any aspect of this Agreement; provided, however, that if such claims are caused by or result from the concurrent negligence of City, its agents, employees, and/or officers, this indemnity provision shall be valid and enforceable only to the extent of the negligence of Park District; and provided further, that nothing herein shall require Park District to hold harmless or defend City, its agents, employees and/or officers from any claims arising from the sole negligence of City, its agents, employees, and/or officers. No liability shall attach to City by reason of entering into this Agreement except as expressly provided herein. 6.12 Interlocal Cooperation Act Provisions It is not intended that a separate legal entity be established to conduct this cooperative undertaking. No special budget or funds are anticipated, nor shall any be created. The parties are each responsible for their own finances in connection with this Agreement, and nothing in this Agreement shall be deemed or construed otherwise. The parties do not intend to acquire, hold, or dispose of any real or personal property pursuant to this Agreement. IN WITNESS WHEREOF, the Parties have executed this Agreement by their duly authorized officers and representatives as of the date indicated above. THE CITY OF TUKWILA TUKWILA METROPOLITAN PARK DISTRICT IC Jim Haggerton, Mayor Approved as to Form: Shelley M. Kerslake, City Attorney IM Verna Seal, Board President Approved as to Form: Lisa M. Marshall, Commission Attorney 51256695.1 181 gir-3w Mo� DRAFT DATED 1118112 Exhibit A Project Description: "Project" or "Pool Improvement Project" means certain improvements, repairs and upgrades to the pool and related facilities owned by the Tukwila Metropolitan Park District, and other capital purposes as deemed necessary and advisable by the MPD Board of Commissioners. Incidental costs incurred in connection with carrying out and accomplishing the Project, consistent with RCW 39.46.070, shall be included as costs of the Project. The term "Project" includes acquisition, construction and installation of all necessary furniture, equipment, apparatus, accessories, fixtures and appurtenances. 183 DRAFT DATED 1118112 Exhibit B TMPD Payment Schedule Due Date Principal Interest Total 6/l/2013 12/l/2013 6/1/2014 12/l/2014 6/l/2015 12 /l /2015 6/l/2016 12/l/2016 6/l/2017 12/l/2017 6/l/2018 12/l/2018 6/l/2019 12/l/2019 6/l/2020 12/l /2020 6/l/2021 12/l/2021 6/l/2022 12/l/2022 6/l/2023 12/l/2023 6/l/2024 12/l/2024 6/l/2025 12/l/2025 6/l/2026 12/l/2026 6/l/2027 12/1/2027 TOTAL 1,000,000.00 COUNCIL AGENDA SYNOPSIS nitials Meetin g Date Prepared b Ma or f review Co ncil 3 11/13/12 PMC ®Resolution Mtg Date 12/3/12 ®Ordinance Mtg Date 12/3/12 11/26/12 PMC Other Mtg Date SPONSOR Council Mayor .HR DCD Finance Fire IT P&R Police PIF/ 12/03/12 PMC RECOMMENDATIONS: SPONsoR /ADMIN. Finance /Public Works COMMITTEE For Information Only; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDTTURI� REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $281,857,011 $281,857,011 Fund Source: MISCELLANEOUS FINDING SOURCES, SEE DETAIL. Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 ITEM INFORMATION ITEM NO. 5.1. 185 STAFF SPONSOR: PEGGY MCCARTHY ORIGINAL AGENDA DATE 11/13/12 AGENDA ITEM TITLE An Ordinance adopting the 2013 -2014 biennial budget, and a resolution adopting the 2013 -2018 Capital Improvement Plan. CATEGORY ®DiscltsJ'ion Mtg Date 11/13/12 Motion Mt Date ®Resolution Mtg Date 12/3/12 ®Ordinance Mtg Date 12/3/12 BidAward Mt Date ®Public Hearing Mt Date 11126112 Other Mtg Date SPONSOR Council Mayor .HR DCD Finance Fire IT P&R Police PIF/ SPONSORS City Council is being asked to approve an ordinance adopting the 2013 -2014 biennial SUMMARY budget, and a resolution adopting the 2013 -2018 Capital Improvement Plan. These items are scheduled for Council consideration at the 11/26/12 Committee of the Whole and 12/03/12 Regular Council meeting. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 11/06/12 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONsoR /ADMIN. Finance /Public Works COMMITTEE For Information Only; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDTTURI� REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $281,857,011 $281,857,011 Fund Source: MISCELLANEOUS FINDING SOURCES, SEE DETAIL. Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/12 11/26/12 MTG. DATE ATTACHMENTS 11/13/12 Informational Memorandum dated 11/07/12 Draft Ordinance and Draft Resolution Reconciliation of the 2013 -2014 Budget Summary to Ordinance <P /ease bring your copy of the preliminary budget C I P> 11/26/12 12/3/12 185 p itv o Jim Haggerton, Mayor MEMORANDUM TO: Mayor Haggerton Tukwila City Council FROM: Peggy McCarthy, Finance Director BY: Kimberly Matej, Government Relations DATE: November 8, 2012 SUBJECT: Preliminary 2013 -2014 Biennial Budget and Draft CIP Changes ISSUE As a result of Council work sessions and meetings, Mayoral direction, updated information, and ongoing staff discussions, changes have been made to the Mayor's Preliminary 2013 -2014 Biennial Budget and Draft 2013 -2018 Capital Improvement Program (CIP) since the Council received the document on October 22. Staff is seeking Council review of these changes and direction, as appropriate, for additional and necessary changes to the budget. BACKGROUND The Proposed Preliminary Biennial Budget for 2013 -2014 and Draft 2013 -2018 CIP were presented to Council on October 1, 2012. The Council held budget work sessions on October 10, 11, and 12, 2012, to discuss these documents. Suggestions made by the Council at the work sessions were taken into consideration, and incorporated into the Preliminary Budget per Mayoral direction. The Preliminary 2013 -2014 Budget was presented to Council on October 22, 2012. DISCUSSION The changes below have been made to the Preliminary 2013 -2014 Biennial Budget and Draft CIP since the Council received the budget document on October 22, 2012. New pages reflecting these changes accompany this memo for insertion into the Preliminary Budget document. Financial Projections for 2013 -2018 An overestimation was identified in the 2013 beginning fund balances for the City's General Fund and Bridges and Arterial Streets 104 Fund. The beginning fund balances for the General Fund and 104 Fund have been reduced by $1.2 million and $2.8 million, respectively. The following budgetary /CIP changes have been made as a result. 1. RESIDENTIAL STREETS Draft CIP Page 2: The 40 -42 Ave South (S 160 St S 131 PI) funding scheduled for 2014 has been moved to 2015 (replace with new page). Draft CIP Page 7: Residential Improvements (sidewalk) funding has been moved from 2015, and is now scheduled to begin in 2016 (replace with new page). 2. FACILITIES Draft CIP Page 73: City Hall Campus /Community Justice Center (facilities scoping /needs analysis) funding for 2013 has been reduced from $1.5 million to $500,000. This new reduced amount is considered sufficient to fund preliminary work that is anticipated to be conducted for facilities scoping and needs analysis in relation to existing City buildings. The $1 million was moved into the Beyond column (replace with new page). 187 Preliminary Budget Draft CIP: Changes page 2 DRAFT CIP Page 76: Projected expenditures for Facilities Improvements in the 303 General Government Improvements Fund have been reduced from $300,000 to $200,000 in years 2015 -2018. Improvements made to existing facilities will be for operating necessities only (replace with new page). 3. EQUIPMENT RENTAL Preliminary Budget Pages 325 and 188: The two fire engine pumpers budgeted on Page 325 of the Preliminary Budget will be purchased via financing rather than a cash payment. This does not affect that financial layout of page 325, but will affect the 2013 and 2014 Fire Suppression budget on Page 188 (replace with new page). Position Addition The Preliminary Budget includes the addition of a Government Relations Manager position to the Mayor's Office. This position will be responsible for federal, state, regional and local government relations and affairs; and actively engage with federal, state and regional elected officials and associations such as the National League of Cities (NLC), Association of Washington Cities (AWC), Suburban Cities Association (SCA), and various King County regional committees. Additionally, this position will be heavily involved with communications and public information fostering a responsive government by connecting our community to information, services and solutions. This will be part of a larger effort, as identified through the Strategic Plan, for the need to strengthen the City's organizational culture of customer service and enhance our current community engagement and public information efforts. This position will also play an integral part in obtaining additional revenue opportunities for the City as well as be dedicated to State legislative issues. This will predominantly affect Preliminary Budget Pages 68 -70 (replace with new pages). Attachment A Attachment A has been updated to reflect significant changes as outlined in this memo. Since Attachment A is included in several areas of the budget, replacement pages with numbers will be distributed as appropriate. Special Note Regarding Replacement Pages. In an effort to minimize confusion while maintaining efficiency, staff is only replacing Preliminary Budget pages that reflect significant changes. There are, and may be, additional pages affected by a change which will not be updated at this time as the change will not substantially affect the information provided. RECOMMENDATION Staff is seeking Council feedback on the changes outlined in this memo as well as any additional areas of discussion or changes relating to the full Council initiatives. This item will be scheduled for additional Council discussion and public hearing at the November 26 Committee of the Whole. Draft ordinances, resolutions and reconciliations relating to the budget are included as attachments to this memo for ongoing Council review. ATTACHMENTS Preliminary Budget Replacement Pages Draft Budget Ordinance Draft CIP Resolution Reconciliation of the 2013 -2014 Budget Summary to Ordinance DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE BIENNIAL BUDGET OF THE CITY OF TUKWILA FOR THE 2013- 2014 BIENNIUM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the preliminary budget of the City of Tukwila for the 2013 -2014 biennium was submitted to the City Council in a timely manner for their review; and WHEREAS, a Public Hearing on the proposed budget was advertised and held on November 26, 2012; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council hereby adopts the document entitled "City of Tukwila 2013 -2014 Budget," incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.34.120. Section 2. The totals of the estimated revenues and appropriations for each separate fund and the aggregate totals are as follows: W: Word Processing \Ordinances\Adopt 2013 -2014 Biennial Budget for COW 11 -26 -12 VC:bjs Page 1 of 3 -0 Total Total Fund Expenditures Revenues 000 General $119,730,819 $119,730,819 101 Hotel /Motel 3,712,082 3,712,082 103 City Street 2,300,000 2,300,000 104 Arterial Street 48,887,820 48,887,820 105 Contingency 5,203,632 5,203,632 107 Fire Equipment Cumulative Reserve 1,030,000 1,030,000 109 Drug Seizure Fund 472,000 472,000 209 Limited Tax G.O. Bonds 2003 3,379,788 3,379,788 210 Limited Tax G.O. Refunding Bonds, 2003 979,750 979,750 211 Limited Tax G.O. Refunding Bonds, 2008 1,550,000 1,550,000 212 Limited Tax G.O. Bonds, 2009A 865,000 865,000 W: Word Processing \Ordinances\Adopt 2013 -2014 Biennial Budget for COW 11 -26 -12 VC:bjs Page 1 of 3 -0 Section 3. A complete copy of the final budget for 2013 -2014, as adopted, together with a copy of this adopting ordinance, shall be kept on file in the City Clerk's Office, and a copy shall be transmitted by the City Clerk to the Division of Municipal Corporations of the Office of the State Auditor and to the Association of Washington Cities. Section 4. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 5. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 6. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. W: Word Processing \OrdinancesWdopt 2013 -2014 Biennial Budget for COW 11 -26 -12 VC:bjs Page 2 of 3 •m Total Total Fund Expenditures Revenues 214 Limited Tax G.O. Bonds, 2010A 1,172,114 1,172,114 216 Limited Tax G.O. Refunding Bonds, ValleyComm 472,000 472,000 217 2011 Refunding Bonds 717,000 717,000 233 2013 LID 1,707,400 1,707,400 301 Land Acquisition, Recreation Park Devl. 4,577,000 4,577,000 302 Facility Replacement 6,366,204 6,366,204 303 General Government Improvements 2,173,684 2,173,684 304 Fire Improvements 400,200 400,200 401 Water 16,814,000 16,814,000 402 Sewer 14,401,000 14,401,000 411 Foster Golf Course 4,033,594 4,033,594 412 Surface Water 13,288,800 13,288,800 501 Equipment Rental 10,660,360 10,660,360 502 Insurance Fund 13,818,784 13,818,784 503 Insurance LEOFF 1 Fund 1,606,680 1,606,680 611 Firemen's Pension 1,537,300 1,537,300 Total All Funds Combined 281,857,011 281,857,011 Section 3. A complete copy of the final budget for 2013 -2014, as adopted, together with a copy of this adopting ordinance, shall be kept on file in the City Clerk's Office, and a copy shall be transmitted by the City Clerk to the Division of Municipal Corporations of the Office of the State Auditor and to the Association of Washington Cities. Section 4. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 5. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 6. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. W: Word Processing \OrdinancesWdopt 2013 -2014 Biennial Budget for COW 11 -26 -12 VC:bjs Page 2 of 3 •m PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Jim Haggerton, Mayor Filed with the City Clerk:_ Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: City of Tukwila 2013 -2014 Budget W: Word Processing \Ordinances\Adopt 2013 -2014 Biennial Budget for COW 11 -26 -12 VC:bjs Page 3 of 3 191 192 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE 2013 -2018 FINANCIAL PLANNING MODEL AND THE CAPITAL IMPROVEMENT PROGRAM FOR GENERAL GOVERNMENT AND THE CITY'S ENTERPRISE FUNDS. WHEREAS, when used in conjunction with the biennial City budget, the Capital Improvement Program (CIP) and the Financial Planning Model for the period 2013 -2018 are resource documents to help plan directions the City will consider for the future; and WHEREAS, the Financial Planning Model and Capital Improvement Program are not permanent fixed plans, but are guidelines or tools to help reflect future goals and future resources at the time budgets are being planned; and WHEREAS, the commitment of funds and resources can only be made through the budget process; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City Council hereby adopts the 2013 -2018 Financial Planning Model and accompanying Capital Improvement Program, incorporated by this reference as if fully set forth herein. Section 2. A copy of the 2013 -2018 Financial Planning Model and accompanying Capital Improvement Program shall be kept on file in the City Clerk's Office. Section 3. The assumptions, revenues and expenditures will be reviewed and updated annually, or as necessary, by the City Council. Section 4. The detail of Capital Improvement Program projects will be reflected in the published Financial Planning Model and Capital Improvement Program 2013 -2018. W: \Word Processing- City \Resolutions \Financial Planning Model CIP 10 -26 -12 VC:bjs Page 1 of 2 193 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President APPROVED AS TO FORM BY: Filed with the City Clerk:_ Passed by the City Council: Resolution Number: Shelley M. Kerslake, City Attorney Attachment: Financial Planning Model and Capital Improvement Program 2013 -2018 W: \Word Processing- City \Resolutions \Financial Planning Model CIP 10 -26 -12 VC:bjs Page 2 of 2 Reconciliation of 2013 -2014 Budget Summary to Ordinance 2013 2014 2014 Ending Total Fund Expenditures Expenditures Fund Balance Expenditures 000 General 55,526,548 59,976,109 5,428,162 120,930,819 101 Hotel /Motel 1,646,282 1,649,003 416,797 3,712,082 103 City Street 1,027,000 3,550,000 23,000 4,600,000 104 Arterial Street 23,583,425 25,212,291 192,104 48,987,820 105 Contingency 5,203,632 5,203,632 107 Fire Equipment Cumulative Reserve 1,030,000 1,030,000 109 Drug Seizure Fund 55,000 55,000 362,000 472,000 209 Limited Tax G.O. Bonds 2003 3,379,787 1 3,379,788 210 Limited Tax G.O. Refunding Bonds, 2003 490,500 488,250 1,000 979,750 211 Limited Tax G.O. Refunding Bonds, 2008 737,000 812,000 1,000 1,550,000 212 Limited Tax G.O. Bonds, 2009A 429,815 431,166 4,019 865,000 214 Limited Tax G.O. Bonds, 2010A 585,074 584,424 2,616 1,172,114 216 Limited Tax G.O. Refunding Bonds, ValleyComm 240,880 229,280 1,840 472,000 217 2011 Refunding Bonds 167,975 547,675 1,350 717,000 233 2013 LID 859,000 848,400 1,707,400 301 Land Acquisition, Recreation Park Devl. 1,122,000 2,682,000 773,000 4,577,000 302 Facility Replacement 1,590,000 4,365,000 411,204 6,366,204 303 General Government Improvements 1,454,937 460,205 258,542 2,173,684 304 Fire Improvements 400,200 400,200 401 Water 6,596,809 7,099,456 3,117,735 16,814,000 402 Sewer 7,163,884 6,683,813 553,302 14,401,000 411 Foster Golf Course 1,707,617 1,751,908 574,069 4,033,594 412 Surface Water 5,126,694 7,129,092 1,033,014 13,288,800 501 Equipment Rental 3,883,538 2,414,633 4,362,189 10,660,360 502 Insurance Fund 5,012,149 5,373,006 3,433,629 13,818,784 503 Insurance LEOFF 1 Fund 508,491 553,078 545,111 1,606,680 611 Firemen's Pension 70,900 72,727 1,393,673 1,537,300 Total 123,995,304 132,968,517 28,493,189 285,457,011 195 Reconciliation of 2013 -2014 Budget Summary to Ordinance 2013 Beginning Fund Fund Balance 2013 Revenues 2014 Revenues Total Revenues 000 General 5,000,000 59,515,079 56,415,741 120,930,819 101 Hotel /Motel 650,000 1,524,766 1,537,316 3,712,082 103 City Street 700,000 839,000 3,061,000 4,600,000 104 Arterial Street 3,000,000 20,994,820 24,993,000 48,987,820 105 Contingency 1,500,000 1,501,816 2,201,816 5,203,632 107 Fire Equipment Cumulative Reserve 1,030,000 1,030,000 109 Drug Seizure Fund 280,000 96,000 96,000 472,000 209 Limited Tax G.O. Bonds 2003 3,303,000 76,788 3,379,788 210 Limited Tax G.O. Refunding Bonds, 2003 1,000 490,500 488,250 979,750 211 Limited Tax G.O. Refunding Bonds, 2008 1,000 737,000 812,000 1,550,000 212 Limited Tax G.O. Bonds, 2009A 1,000 432,000 432,000 865,000 214 Limited Tax G.O. Bonds, 2010A 1,000 586,057 585,057 1,172,114 216 Limited Tax G.O. Refunding Bonds, ValleyComm 1,000 241,000 230,000 472,000 217 2011 Refunding Bonds 1,000 168,000 548,000 717,000 233 2013 LID 859,000 848,400 1,707,400 301 Land Acquisition, Recreation Park Devl. 500,000 1,149,000 2,928,000 4,577,000 302 Facility Replacement 2,000,000 5,602 4,360,602 6,366,204 303 General Government Improvements 200,000 1,347,842 625,842 2,173,684 304 Fire Improvements 300,000 50,100 50,100 400,200 401 Water 4,000,000 5,392,000 7,422,000 16,814,000 402 Sewer 1,100,000 6,655,000 6,646,000 14,401,000 411 Foster Golf Course 200,000 1,791,597 2,041,997 4,033,594 412 Surface Water 2,000,000 4,206,900 7,081,900 13,288,800 501 Equipment Rental 4,000,000 3,823,058 2,837,302 10,660,360 502 Insurance Fund 4,500,000 4,659,392 4,659,392 13,818,784 503 Insurance LEOFF 1 Fund 1,600,000 3,340 3,340 1,606,680 611 Firemen's Pension 1,420,000 58,650 58,650 1,537,300 Total 37,289,000 117,204,306 130,963,705 285,457,011 W Upcoming Meetings Events November 2012 12th (Monday) 13th (Tuesday) 14th (Wednesday) 15th (Thursday) 16th (Friday) 17th (Saturday) Veterans Day Annual Tukwila Holiday Gift and (Observed) n 4,4 4_ Parks Thanksgiving Historical Food Drive Dinner for Society, (Westfield City offices closed Cancelled Seniors 7:00 PM Southcenter Mall m City Council Executive (Tukwila Heritage Cultural Center, 14475 59 Ave North Parking lot) 9:00 AM 5:00 PM The Tukwila Police Department be S) will 6:00 pm collectingfood, gifts (Tukwila or monetar donations to help Community City Council Center) support the Tukwila Committee of Doors open at Food Pantry and the the Whole Mtg., 10:45 AM, Tukwila Community 7:00 PM Beverages and Center's Holiday (Council Salad served at GivingProgrom Chambers) 11:15 AM. The new Police Command Vehicle will Lunch is served be there, and the Tukwila at 12:00 Noon. Tukwila Police International This is a free event Explorers will be doing Boulevard for Seniors. To fingerprinting to help Action Crate, reserve a space keep kids safe! 7:00 PM call: (Community 206 -768 -2822 Center) Utilities Crate, 5:00 PM (CR #1) 19th (b4onday) 20th (Tuesday) 21st(Wednesday) 22nd (Thursday) 23rd (Friday) 24th (Saturday) Transportation Finance Parks Thanksgiving Day Tukwila Int'l. Crate, Safety Crate, Commission, City offices closed City Offices Blvd. Action 5:15 PM 5:15 PM 5:30 PM closed Cmte's (CR #1) (CR #3) (o munity Trash Pickup Day 9:00 10:00 .AAt City Council Executive Library Advisory Board, di Session, 7:00 PM 6:00 PM (Foster Library) For location contact Rick at City Council rick@forschler.org Regular Mtg., 7:00 PM (Council Chambers) Tukwila Metropolitan Park District Board of Commissioners Meeting, 8:00 Pnt (Council Chambers) Arts Commission: 1st Tues., 5:30 PM, Tukwila Community Center. Contact Stephanie Gardner at 206 -767 -2342. Chamber of Commerce's Tukwila Government and Community Affairs Committee: 1st Tues., 12:00 Noon, Chamber Offices. ContactLvnn Wallace at 206 -575 -1633. City Council Committee of Whole (C.O.W.) Meeting: 2nd 4th Mon., 7:00 PM, Council Chambers at City Hall. City Council Regular Meeting: 1st 3rd Mon., 7:00 PM, Council Chambers at City Hall. Community Affairs Parks Committee: 2nd 4th Mon., 5:00 PM, Conf. Room #3 Meeting Cancelled Equity Diversity Commission: 1st Thurs., 5:15 PM, Conf. Room #3. Contact Joyce Trantina at 206 433 -1850. Finance Safety Committee: 1st 3rd Tues., 5:15 PM, Conf. Room #3 Library Advisory Board: 3rd Wed., 7:00 PM, Foster Library. Contact Stephanie Gardner at 206 767 -2342. Parks Commission: 3rd Wed., 5:30 PM, Senior Game Room at Community Center. Contact Dave Johnson at 206 -767 -2308. Planning Commission /Board of Architectural Review: 4th Thurs., except 2nd Thursday in Nov. Dec., 6:30 PM, Council Chambers at City Hall. Contact YVynetta Bivens at 206-431-3670. Transportation Committee: 1st 3rd Mon., 5:00 PM, Conf. Room Tukwila Historical Society: 3rd Thurs., 7:00 Pm, Tukwila Heritage Cultural Center, 14475 59` Avenue S. Contact Pat Brodin at 206 433 -1861. Utilities Committee: 2nd 4th Tues., 5:00 PM, Conf. Room (A) Surface Water Comprehensive Plan. 197 Tentative Agenda Schedule MONTH MEETING 1- MEETING 2 MEETING 3 MEETING 4 REGULAR C.O.W. REGULAR C.O.W. November 5 13 (Tuesday) 19 26 See agenda packet Unfinished Business: Public Hearings: Supplemental cover sheet for this Budget Budget week's agenda Agreement for Amendment (November 13, 2012 additional design work Ordinance, Budget Committee of the Whole for Duwamish Gardens Ordinance for 2013 Meeting). project. 2014, CIP Resolution. Water and Sewer Comprehensive Plans. Special Issues: A resolution regarding Budget Budget Water, Sewer and Amendment Surface Water Rates. Ordinance, Budget Update on street Ordinance for 2013 vacation for 2014, CIP Resolution. Southcenter Parkway. MPD Bond Ordinance. New Business: Collective Bargaining Agreement. December 3 10 17 24 Public Hearings: An ordinance adopting a Development Agreement for Tukwila Village. Unfinished Business: Budget Budget Amendment Ordinance, Budget Ordinance for 2013- 2014, CIP Resolution. MPD Bond Ordinance. W