HomeMy WebLinkAboutCOW 2013-03-25 COMPLETE AGENDA PACKET-9
Monday, March
Tukwila City Council Agenda
• COMMITTEE OF THE WHOLE ❖
Jim Haggerton, Mayor Councilmembers + Joe Duffie + Dennis Robertson
David Cline, CityAdministrator + Allan Ekberg + Verna Seal
Kathy Hougardy, Council President + De'Sean Quinn + Kate Kruller
EXECUTIVE SESSION — 6:00 PM — 7:00 PM
Potential Property Acquisition — Pursuant to RCW 42.30.110(1)(b)
(60 minutes)
25, 2013, 7:00 PM Tukwila City Hall Council Chambers
1. CALL TO ORDER / PLEDGE OF ALLEGIANCE
2. SPECIAL
PRESENTATIONS
a. An update on the Hyde Shuttle. CindyZwart, Director, Volunteer
Transportation, Senior Shuttles and Nutrition Transportation.
b. Growing Transit Communities partnership. Michael Hubner, Project
Manager, Puget Sound Regional Council.
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3. CITIZEN COMMENT
At this time, you are invited to comment on items not included on this agenda
is
(p /ease limit your comments to five minutes per citizen). To comment
on an item listed on this agenda, please save your comments until the issue
presented for discussion.
4. SPECIAL ISSUES
a. Update on Tukwila International Boulevard revitalization efforts.
b. Tourism Promotion Area.
c. A resolution declaring an emergency due to a sanitary sewer line repair
on Andover Park West.
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5. REPORTS
a. Mayor
b. City Council
c. Staff
d. City Attorney
e. Intergovernmental
6. MISCELLANEOUS
7. EXECUTIVE SESSION
8. 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,gov, 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 rules 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:
1. 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.
3. 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.
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DISCUSSION ITEM
To: Tukwila City Council
From: Michael Hubner, Senior Planner
Subject: PSRC's Growing Transit Communities Program
AT ISSUE
March 25, 2013
In October 2010, the region was awarded a $5,000,000 regional planning grant from the U.S.
Department of Housing and Urban Development Office of Sustainable Housing and Communities.
Grant funds are supporting a multi -year PSRC program called Growing Transit Communities. At
your March 25 meeting, staff will provide an overview and status report on project
implementation.
DISCUSSION
The purpose of the project is to address some of the greatest barriers to implementing the region's
framework plans— VISION 2040, Transportation 2040, and the Regional Economic Strategy —and
securing equitable outcomes. A significant goal will be to identify unique development
opportunities in bus rapid transit and light rail station areas, and other ways to strengthen existing
communities as Sound Transit expands the LINK light rail system. The program is coordinating
and directly involving a wide array of community stakeholders, both public and private. Tasks
being conducted under the Growing Transit Communities program include:
• Regional Equity Network. Developing and supporting a regional network to promote
equitable community planning and mobilize residents and community groups representing
diverse populations to participate in local planning and decision - making
• Affordable Housing Action Strategy. Creating an affordable housing action strategy that
will test, recommend, and implement local policies and financial tools to encourage and
facilitate a wide variety of housing choices along light rail corridors.
• Corridor Action Strategies. Convening and supporting light -rail corridor task forces to
craft local agreements and Corridor Action Strategies to attract transit - oriented
development along the North, East, and South light rail investment corridors. Work
includes establishing goals for station areas and adjacent communities, and for coordination
of development, housing, jobs, and community amenities.
• Innovative Tools. Developing new tools and resources to bridge the gap from goals and
policies to specific actions and steps. New technologies and analyses will assist local
communities in planning, decision - making, and building local support for sustainable
development. Tasks will test and refine these approaches with catalyst demonstration and
case study projects in light rail corridor neighborhoods to serve as visible templates for
sustainable development.
• Technical Assistance. Providing direct technical support to jurisdictions and to non -profit
organizations to explore and establish incentive programs for affordable housing. Technical
assistance will support local jurisdiction updates to local comprehensive plans.
More detailed summaries of work program elements and other explanatory materials are available
at http: / /www.psrc.org /growth /growing- transit - communities
For more information, please contact Michael Hubner at (206) 971 -3289 or at mhubner @psrc.org.
2
Growing Transit Communities Implementation
Frequently Asked Questions
What is the Growing Transit Communities Partnership?
The Growing Transit Communities Partnership is an advisory body of diverse public, private, and nonprofit agencies
and organizations working together to promote successful transit communities. The Partnership is funded by a three -
year grant from the federal Partnership for Sustainable Communities and is housed at the Puget Sound Regional
Council. The Partnership is developing recommendations for best practices and new tools and resources to address
three overarching goals that advance adopted regional policy:
• Attract more of the region's residential and employment growth near high- capacity transit
• Provide housing choices affordable to a full range of incomes near high- capacity transit
• Increase access to opportunity for existing and future community members in transit communities
Why equitable transit communities? Why now?
Building communities around high- capacity transit is a key strategy to promote a more sustainable, prosperous, and
equitable central Puget Sound region. While the region is already a recognized national leader on planning for
sustainable development, the investment of more than $15 billion in light rail and other forms of transit requires
bold, coordinated action to ensure the greatest value from these investments is realized. Success means creating a
region that can compete globally for jobs and investment, and is well positioned to attract scarce state and federal
funds for transportation and community development. Success also means providing the tools, resources, and public
support necessary to achieve a regional vision where compact growth, improved transit connections, and a range of
community investments provide benefits fairly to all.
How do the Growing Transit Communities recommendations relate to state or regional policies and requirements?
The recommendations do not create new mandates for partners across the region; rather, they identify tools,
resources, and incentives to help partners carry out what is already adopted regional policy in VISION 2040 and
Transportation 2040, and in state requirements of the Growth Management Act. The Partnership's recommendations
have been developed for regional and local governments, as well as a range of private, non - profit, and community
partners. Adoption of the Partnership's recommendations will depend on appropriate legislative or board approval.
What are the mechanisms for implementing the Growing Transit Communities Partnership recommendations?
There are three primary ways to implement the recommendations of the Growing Transit Communities Partnership:
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The Regional Compact affirms support for the Partnership's work and a commitment to
work toward regional goals by implementing the Corridor Action Strategies. The
Compact calls for a continuing regional effort involving the region's diverse partners.
The Compact does not obligate partners to implement all recommendations, but rather
to consider and adopt tools that fit best with community needs and available resources.
The Corridor Action Strategies include 24 detailed recommendations that identify
actions for public, private, and nonprofit partners. The strategies identify effective
transit community development approaches, shaped by input from experts and the
Partnership's corridor task forces and advisory committees. The strategies vary for
different types of communities.
The Local Implementation Agreements are local government, agency, or organization
specific work plans which define short- and medium -term actions that can implement
the Corridor Action Strategies. The nature and format of the Local Implementation
Agreements will vary to reflect the diversity of public and private partners, legislative
and decision making processes, and actions adopted.
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Is this just about light rail stations?
By promoting transit ridership, sustainable patterns of development, and equitable social outcomes, the Corridor
Action Strategies are intended to benefit the entire region. The Partnership has focused on 74 transit communities
along the region's three long -range light rail corridors identified in Transportation 2040. This includes portions of 16
cities (Everett, Lynnwood, Mountlake Terrace, Shoreline, Seattle, Mercer Island, Beaux Arts Village, Bellevue,
Redmond, Tukwila, SeaTac, Kent, Des Moines, Federal Way, Fife, and Tacoma) and three counties (Snohomish, King,
and Pierce). Other important transit nodes also exist throughout the region. Future work will expand the approaches
developed by the Partnership to additional transit communities not in the three light rail corridors.
What is the Transit Community Typology and how does it guide implementation?
From the outset, the Partnership recognized that one set of strategies cannot address the diversity of communities
that currently exist or are planned around the region's high- capacity transit investments. For this reason, the Growing
Transit Communities Partnership has developed a Transit Community Typology to link key implementation strategies
to transit communities based on characteristics of the existing community. The Typology resulted in eight different
types, each with priority strategies, that demonstrate the varying needs and opportunities present in different transit
communities across the region.
Do the recommendations include updates to VISION 2040, Transportation 2040 or the Regional Economic Strategy?
The focus of Growing Transit Communities is to develop tools and resources to help carry out existing regional policy.
One first step will be integrating regional data and tools developed under this grant with the minor update to
Transportation 2040 currently underway. As implementation of the Corridor Action Strategies proceeds in the coming
years, PSRC may consider further refining or adding detail to its policies and plans to advance regional goals for transit
communities. Any such amendments or policy changes will be subject to PSRC board approval.
Will the Corridor Action Strategies affect project funding or plan certification through PSRC?
Transportation project funding can be an effective tool to support transit communities in the region. The Partnership
has identified key infrastructure needs as well as opportunities to reward implementation of best practices
throughout the region. The Corridor Action Strategies suggest adding greater detail or additional points to the current
funding criteria used for competitive regionally- managed transportation funds or refinements to the local
comprehensive plan certification review criteria. Adoption of changes to project funding or plan certification criteria
would be subject to PSRC board approval. Recommended strategies that may inform project funding and plan
certification criteria include adoption of:
• Station area plans consistent with regional guidance
• Housing needs assessment and a strategy to address local needs
• Community engagement strategies in public processes consistent with regional guidance
• Tools to address regulatory barriers to development
What is the timeline for implementation?
The Growing Transit Communities Partnership's Oversight Committee is expected to release the draft Regional
Compact and Corridor Action Strategies for public comment in mid - April, with final adoption in summer 2013.
Growing Transit Communities staff will work with Consortium Members and other regional partners on the Regional
Compact and the Local Implementation Agreements through the end of 2013. Looking beyond the end of the grant
period in early 2014, implementation will continue through regional and local work plans.
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Communities
For more information, please contact Program Manager Ben Bakkenta at 206 - 971 -3286 or bbakkentaPpsrc.org.
March 8, 2013
4
COUNCIL AGENDA SYNOPSIS
Meeting Date
Prepared 6y
Mayor's review
03/25/13
CO
Council review
ITEM INFORMATION
ITEM No.
4.A.
5
STAFF SPONSOR: CHIEF VILLA
ORIGINAL AGENDA DATE: 3/25/13
AGENDA ITEM TITLE Update on Tukwila International
Boulevard
revitalization
efforts.
CATEGORY A Di
rcussion
3/25/13
•
Motion
Date
LIl Resolution
Mtg Date
Ordinance
Mtg Date
• Bid
Award
Public Hearing
Mtg Date
• Other
Mtg Date
Mtg
Mtg Date
Mtg Date
SPONSOR Lj Council A Mayor HR Li DCD Finance Li Fire • IT P&R a Police • PW
SPONSOR'S Chief Villa, the City Attorney and staff will provide information regarding the Tukwila
Su MNIARY International Boulevard revitalization efforts.
REV : El BY
COW Mtg.
Cmte
CA&P Cmte
F&S Cmte
Parks
COMMITFEE
Comm
• Transportation
Cmte
• Utilities
•
Arts Comm.
• Planning Comm
DATE: N/A
CHAIR:
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITTEE:
Police Department
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$0 $0 $0
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
MTG. DATE
ATTACHMENTS
3/25/13
No Attachments
5
6
COUNCIL A GENDA SYNOPSIS
Meeting Date
Prepared by
Mayor's review
Council review
03/25/13
DCS
04/01/13
DCS
A
Motion
Date 04/1/13
Resolution
Mtg Date
Ordinance
Mtg Date
Bid Award
Mtg Date
• Public Hearing
• Other
Mtg Date
Mtg
Mtg Date
ITEM INFORMATION
ITEM No.
4.B.
7
STAFF SPONSOR: DEREK SPECK
ORIGINAL AGENDA DATE: 03/ 25/13
AGENDA ITEM TITLE Tourism Promotion Area
CATEGORY A Discussion
3/25/13
A
Motion
Date 04/1/13
Resolution
Mtg Date
Ordinance
Mtg Date
Bid Award
Mtg Date
• Public Hearing
• Other
Mtg Date
Mtg
Mtg Date
Mtg Date
SPONSOR Council a Mayor HR DCD Finance Fire IT • P&R • Police PW
SPONSOR'S The City of Tukwila has an opportunity to participate in a Tourism Promotion Area (TPA).
SUMMARY Staff supports the concept of a TPA and seeks Council direction as to the appropriate level
of Tukwila's involvement. The Council is being asked to consider and approve a motion in
support of forming a TPA.
REV IEWED BY COW Mtg. CA&P Cmte
Utilities Cmte Arts Comm.
DATE: 03/05/13
A F&S Cmte
Comm
• Transportation
Cmte
• Parks
• Planning Comm.
COMMITTEE
CHAIR: ROBERTSON
RECOMMENDATIONS:
SPONSOR/ADMIN.
CommYITEE
Mayor's Office
Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPINDITURI REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
03/25/13
MTG. DATE
ATTACHMENTS
03/25/13
Informational Memorandum dated 3/18/2013
Informational Memorandum dated 2/27/13
Multiple attachments to memorandum
Minutes from the Finance and Safety Committee meeting of 3/5/13
04/01/13
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8
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: City Council
FROM: Derek Speck, Economic Development Administrator
BY: Brandon Miles, Senior Planner
DATE: March 18, 2013
SUBJECT: Tourism Promotion Area
ISSUE
The purpose of this memo to answer specific questions that were posed by members of the
Finance and Safety Committee on March 5, 2013.
BACKGROUND
On March 5, 2013, staff briefed the Finance and Safety Committee on the concept of creating a
Tourism and Promotion Area (TPA). After discussion, the Committee forwarded the item to the
March 25, 2013 Committee of the Whole meeting for full Council consideration. Members of
Finance and Safety raised a number of questions that should be answered as this item moves
through the approval process. Of those, staff can answer the following questions at this time.
(1) What are the next steps in the process (e.g. outreach to hoteliers, negotiate with
stakeholders, etc.) and when would this come back to Council?
(2) What are the next steps?
(3) What is the motion the Council is being asked to approve at this time?
DISCUSSION
If the Council is interested in considering forming a TPA, Tukwila's next steps would be to:
1. Staff begins formal negotiations with the City of SeaTac and other interested cities. Staff
would consult with other stakeholders such as hoteliers and tourism staff.
2. Staff conducts outreach to Tukwila hoteliers. This will likely include mailings and an open
house.
3. Staff creates a proposed term sheet. If possible, the term sheet would reflect consensus
of all stakeholders.
4. The Finance and Safety Committee considers the term sheet and decides whether to
forward the term sheet to the full Council.
5. Full Council considers and approves the term sheet.
6. Staff works with the City of SeaTac to draft an interlocal agreement (ILA).
7. The Finance and Safety Committee considers the ILA and decides whether to forward to
the full Council. At the same time, other cities would begin their council approval
processes.
8. The Committee of the Whole reviews the ILA and conducts the required public hearing.
Note: This is a required public hearing for entering into an ILA, not a required public
hearing for the TPA.
9. The Regular Council authorizes the Mayor to sign the ILA.
10. All participating cities sign the ILA
11. The newly formed Legislative Authority meets and accepts petition from hoteliers to form
TPA. The Legislative Authority adopts resolution setting a public hearing.
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INFORMATIONAL MEMO
Page 2
12. The Legislative Authority holds a public hearing and adopts an ordinance creating the
TPA.
13. The Legislative Authority enters into an agreement with the Washington State
Department of Revenue to collect TPA funds and place the funds into an account for use
by the TPA or designee.
14. The Legislative Authority would contract with a tourism organization or organizations to
implement the tourism promotion work.
15. On a periodic basis, such as annually, the Legislative Authority would review the tourism
organization's outcomes and financial statements and approve a budget.
What is the motion the Council is being asked to approve at this time?
Staff is requesting that at the April 1, 2013 Regular Council meeting that the City Council adopt
a motion expressing support for participating in a tourism promotion area and encouraging the
City Administration to start negotiations with the City of SeaTac and key stakeholders to form an
interlocal agreement (ILA) with the City of SeaTac and other interested cities.
FINANCIAL IMPACT
See February 27, 2013 memo to Finance and Safety.
RECOMMENDATION
See February 27, 2013 memo to Finance and Safety.
ATTACHMENTS
• February 27, 2013 memo to Finance and Safety.
• March 5, 2013 Finance and Safety Minutes.
Z:ITourism Promotion ArealMarch 25, 2013 COWIInfoMemo dcs edits.doc
TO:
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance and Safety
FROM: Derek Speck, Economic Development Administrator
BY: Brandon Miles, Senior Planner
DATE: February 27, 2013
SUBJECT: Tourism Promotion Area
ISSUE
Staff is seeking direction from the City Council as to whether the City of Tukwila should engage
with stakeholders to form a Tourism Promotion Area.
BACKGROUND /DISCUSSION
The Cities of Tukwila and SeaTac have been requested by hoteliers to form a Tourism
Promotion Area (TPA). The TPA would charge up to $2 per room night. According to the
Revised Code of Washington (RCW) 35.101.010, the funds must be used for tourism promotion
which means "activities and expenditures designed to increase tourism and convention
business, including but not limited to advertising, publicizing, or otherwise distributing
information for the purpose of attracting and welcoming tourists, and operating tourism and
destination marketing organizations ".
A TPA is a geographic region in which a legislative authority (such as a county or city) charges
a per room night fee on the furnishing of lodging by either a hotel or motel. The fee may be up
to $2 per room night and may be charged to lodging businesses with four or more lodging units.
The fee is collected by the Washington State Department of Revenue and then transmitted to
the legislative authority, or the legislative authority's designee. Staff estimates that if the Cities
of SeaTac and Tukwila form a TPA that charges $2 per room night for hotels and motels with
over 60 rooms, it could generate up to $2.5 million per year for tourism promotion.
Attached is a chart summarizing the other TPAs in Washington State. There are currently no
TPAs in King County.
Lodging Tax
As a separate but related issue, the cities of Tukwila and SeaTac each separately currently
implement a 1% tax on lodging. As required by State law, each city also has a lodging tax
committee that serves as an advisory committee to each city council and provides
recommendations on the expenditures of the lodging tax funds. Through inter -local
agreements, the cities of Tukwila, SeaTac, Kent, and Des Moines contribute approximately $1.2
million per year toward the Seattle Southside Visitors Services, which is a tourism program that
promotes the region and is administered by the City of Tukwila. Formation of a TPA would not
affect the collection of the 1% lodging tax. The lodging tax advisory committees are required by
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INFORMATIONAL MEMO
Page 2
State law and would remain in effect. Staff recommends that if a TPA is formed for the SeaTac
and Tukwila region, that the responsibility for marketing the region to tourists be transferred to
the new tourism organization. The cities could transfer the Seattle Southside brand, website,
and other assets to the tourism organization. The cities could continue to use lodging tax for
regional tourism promotion by contracting with that organization.
TPA Formation Process
The following outlines the basic process to form a TPA between the cities of Tukwila and
SeaTac. Other cities could also be included. Of course, prior to starting these steps, staff would
engage with SeaTac, Seattle Southside staff, our hoteliers, and other cities to come up with a
consensus approach.
1. Cities designate the "legislative authority". The participating city councils would need to
designate one of the cities as the legislative authority or form a combined legislative
authority. This step would be enacted through an inter -local agreement.
2. Hoteliers submit petition to the legislative authority.
3. Legislative authority adopts a "resolution of intention to establish a tourism promotion
area ".
4. Legislative authority holds a public hearing.
5. The legislative authority adopts an ordinance establishing the TPA and the lodging
charge.
6. The legislative authority contracts with the Washington State Department of Revenue to
collect the lodging charge on behalf of the TPA.
7. Washington State Department of Revenue starts collecting the TPA lodging charge.
8. The legislative authority contracts with a tourism organization to carry out the tourism
promotion work.
9. The legislative authority should meet at least once a year to approve a basic budget,
approve changes to the contract with the tourism organization, and review annual
tourism promotion outcomes.
Legislative Authority
Under State law a "legislative authority" (e.g. city or county council) must adopt an ordinance in
order to establish a TPA. The law also requires that in any county with a population of one
million or more, the legislative authority shall be composed of two or more jurisdictions acting
jointly as the legislative authority under an inter -local agreement (RCW 35.101.010). Thus, in
order for the City of Tukwila to form a TPA it must partner with one or more jurisdictions, such
as with the City of SeaTac, City of Renton or with King County. Staff from the City of SeaTac
has expressed interest in forming a TPA with Tukwila and other cities.
It should be noted that a city can transfer, through an Inter -local Agreement (ILA), its legislative
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INFORMATIONAL MEMO
Page 3
authority to another governmental entity. Therefore, the legislative authority for a Tukwila -
SeaTac TPA could take the following forms:
1. SeaTac could transfer its legislative authority to Tukwila;
2. Tukwila could transfer its legislative authority to SeaTac; or
3. SeaTac and Tukwila could form a combined legislative authority that would have some
councilmembers from both cities. In this case, one of the cities would coordinate the
proceedings of the combined legislative authority.
Most of the TPAs involve two or more jurisdictions so they have dealt with this question -- even
though these TPAs have been formed in counties that have a population of Tess than one million
and are not required by State law to partner with an another jurisdiction.
Options 1 and 2 have occurred with the TPAs in Snohomish, Pierce, Clark, and Spokane
Counties. In those four TPAs, the partnering cities have transferred their legislative authority
status to the largest governmental entities, the respective county councils.
None of the TPAs have used option 3 to create a combined legislative authority. However, it
should be noted that none of the TPAs are located in a county with over one million residents
and so are not required by law to partner with other jurisdictions to form a legislative authority.
There has been some discussion and consideration about transferring the legislative authority to
a third party such as a Public Development Authority (PDA). While a third party can be used to
actually implement the program and oversee the daily use of the funds, the legislative authority
must remain with an elected body. The legislative authority must be able to adopt resolutions
and ordinances. If a PDA had a board that was entirely composed of councilmembers then the
cities could designate it as the legislative authority for the TPA. All of the TPAs have legislative
authorities that are either city or county councils.
State law specifies that the legislative authority "has sole discretion as to how the revenue
derived from the charge is to be used to promote tourism (RCW 35.101.130)." However, it does
not specify the level of involvement needed by the legislative authority in overseeing the TPA.
The legislative authority may appoint existing advisory boards or create new advisory boards to
make recommendations for the use of the funds. The legislative authority may also contract
with tourism destination marketing organizations or similar organizations to promote tourism.
Based upon the research into the other TPAs, most of the legislative authorities approve an
annual budget for the TPA and the contract with a local tourism organization such as a
convention and visitors bureau. Typically, the legislative authorities do not get involved in the
day to day operations of the TPA. The one exception is Snohomish County. The Snohomish
County Council approves all expenditures of the TPA funds, after request for funds have been
reviewed by a commission of hoteliers.
Petition and Geographical Area
In order to form a TPA, State law requires that a petition be presented to the legislative
authority. To be valid, the petition must include a number of items including:
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INFORMATIONAL MEMO
Page 4
1. A description of the boundaries of the proposed TPA. Given that Tukwila may partner
with the City of SeaTac on the TPA, the description of the boundary would be the
combined area of both cities;
2. The proposed uses and projects to which the proposed revenue from the charge shall be
put and total estimated costs;
3. The estimated rate for the charge with a proposed breakdown by classification of lodging
business. For example, the TPA could be set up to only apply to hotels with over a
certain number of rooms. If the threshold is set to 60 or more rooms, Tukwila has fifteen
hotels and motels in that classification which comprise a total of 2,035 rooms; SeaTac
has 28 hotels and motels in that classification which comprise a total of 5,227 rooms.
The combined total between the two cities is 7,262 rooms; and
4. The signatures of the persons who operate lodging businesses in the proposed area
who would pay sixty percent or more of the proposed charges ( "ratepayers "). It is
important to point out that the 60 percent requirement is for the entire TPA area, which
would be the combined area of the cities of Tukwila and SeaTac. If the TPA is limited to
hotel and motels with 60 or more rooms, there would be a total of 7,262 rooms within the
TPA area, thus hoteliers comprising 4,357 of the rooms would be able to meet the 60
percent threshold. It is important to note that SeaTac hotels /motels would have
approximately 71% of the rooms in the TPA, while Tukwila would make up 29 %; thus
SeaTac hoteliers could submit a valid petition, even if ALL of Tukwila's hotel ratepayers
objected to the formation of the TPA.
Before a legislative authority can adopt an ordinance to implement a TPA, State law requires
the legislative authority to hold a public hearing. If a protest is made by the lodging businesses
in the area which would pay a majority of the proposed charges then the formation proceedings
must terminate (RCW 35.101.070).
Tourism Organization
Once the legislative authority has formed the TPA it can determine the organizational structure
to implement the tourism promotion work. There are basically four types of organizations that
could work:
1. Business. The legislative authority could contract with a for - profit business (or even an
individual as a sole proprietor), such as a marketing firm, to be carry out the tourism
promotion work. This appears to be the framework with Union Gap's TPA.
2. City Department. The legislative authority could contract with the City of Tukwila or
SeaTac to implement the tourism promotion. This arrangement would be similar to the
relationship that Tukwila and SeaTac have with the Seattle Southside. SeaTac and
Tukwila have an inter -local agreement in which the cities pool lodging tax funds for
tourism promotion under the brand of Seattle Southside. The Seattle Southside staff
members are City of Tukwila employees and the City of Tukwila administers the inter -
local agreement. A benefit of this arrangement is that it may be faster to implement since
we have an existing framework. It also provides stability and openness. There are some
significant drawbacks because government agencies are more risk averse since they
have to take into account citizen expectations and follow numerous laws and
regulations. Cities also have wide variety of functions and policies that serve all
departments which can make it challenging to provide the flexibility that may be
14
INFORMATIONAL MEMO
Page 5
appropriate for tourism promotion. These aspects can result in higher administrative
costs, limited flexibility, and longer time to get results.
Snohomish County's operates its TPA program as a grant program. Anyone can
propose programs or events to the TPA Commission for funding. The funding requests
are reviewed by the Commission and then forwarded to the County Council for final
action. The County TPA funds a Tourism Bureau that provides marketing and does not
itself directly engage in any marketing or tourism functions. A benefit of this framework
is that staff costs to the TPA are relatively low. The TPA is managed by one county staff
member. A drawback is the time it takes to get final approval of funding requests given
that the requests must be approved by the County Council.
3. 501(c)(6) Organization. All, except two, TPA legislative authorities in Washington State
contract with a 501(c)(6) organizations, such as Convention and Visitor Bureaus, to
implement the tourism work. Many of these 501(c)(6) organizations existed before the
TPAs were formed. There appears to be no existing 501(c)(6) in the Tukwila/SeaTac
area that could immediately implement the tourism promotion work. Thus, the
organization would need to be created. One major benefit of a 501(c)(6) is that it can
operate outside of many of the limitations and citizen expectations that are placed on
local governments. Given that the entity would be using public funds it would need to
comply with some requirements regarding the use of public funds. The board of
directors of the 501(c)(6) would be independent from the legislative authority. The only
relationship between the legislative authority and the 501(c)(6) would be a contract.
The 501(c)(6) would also be free to solicit business from other governmental entities that
need tourism and marking services.
4. Public Development Authority (PDA). In a memo dated March 29, 2012,
representatives of eight hotels in Tukwila requested that the TPA be managed and
implemented through a Public Development Authority as a way to provide autonomy and
oversight, presumably by the TPA ratepayers hotels /motels.
A PDA is a public agency created by a local government or combination of governments.
Although currently no TPA legislative authorities have contracted with PDAs, a PDA can
carry out tourism promotion work. For example, Pike Place Market is a PDA that
undertakes significant tourism promotion.
The creating legislative authority can choose to have oversight of the PDA; however, the
PDA is a separate legal entity. The PDA can enter into its own contracts, sue and be
sued, and generally operate independently from the parent organization.
While the day to day operations of the PDA are separate from the local government that
created it, ultimate oversight of the PDA would rest with the local government. A good
example of this is the PDA for the Pike Place Market. While the Pike Place Market PDA
operates outside of the management structure of the City of Seattle, the Seattle City
Council appoints all of the members of the PDA Board'. Furthermore, the Seattle City
Council can terminate all of the Board members and the budget of the Pike Place Market
1 Charter of the Pike Place PDA at p. 13.
15
INFORMATIONAL MEMO
Page 6
PDA must be approved by the Seattle City Council2.
While a PDA would have some autonomy from the cities of Tukwila and SeaTac, it
would not have as much autonomy as a 501(c)(6), which would be fully independent
from the legislative authority; with the only relationship being a contractual relationship.
One potential benefit of the PDA is that it would provide an avenue for more oversight by
the legislative authority and the cities that are part of the legislative authority. When a
local government (city or county) creates a PDA, it typically has control of the Charter
and bylaws of the PDA. For example, the Charter of the Pike Place Market PDA was
approved by the Seattle City Council and any modifications require approval of the
Seattle Mayor. Through the Charter, the government agency that creates the PDA can
specify the membership of the PDA board and certain operational functions if it desires.
Another potential benefit of a PDA is that, as a public agency its employees would be
public employees and as such, it could choose to offer State Retirement and other
benefits to the current Seattle Southside (City of Tukwila) employees.
One potential drawback of using a PDA as the tourism organization is the fact that the
PDA would have to comply with all of the same laws that a City has to comply with.
Most notably, PDAs are subject to the Open Meetings Act, Public Records Act, archiving
requirements, and gifting of public funds. A 501(c)(6) would face some of these same
restrictions, but only when it used TPA funds. The restriction would not be in place for
separate funds generated by the 501(c)(6). A PDA's full operations would be subject to
the same requirements placed on the City. For example, all internal emails would be
subject to disclosure under the Public Records Act, even if the emails have nothing to do
with the TPA; this would not be the case for a 501(c)(6).
Like the 501(c)(6), the PDA could solicit business from other governmental entities that
need tourism and marking services; however, this would need to be permitted in the
Charter that created the PDA. A benefit of a PDA is that donations to the PDA can be tax
deductible.
Termination of the TPA
Should the need arise, the legislative authority may disestablish the tourism promotion area
following a public hearing (RCW 35.101.140). When the cities create the inter -local agreement
to designate the legislative authority or establish a combined legislative authority, the ILA could
include a termination clause.
Feedback from Stakeholders
Following is an overview of the feedback that we have received regarding formation of the TPA.
Seattle Southside Visitors Services: SSVS staff is very excited about a TPA and sees this as
a good opportunity to generate up to $2.5 million in additional tourism promotion revenue each
year and hope that the Cities of SeaTac and Tukwila would form a PDA to manage and
implement the Seattle Southside tourism program drawing upon both the tourism promotion
area revenue and lodging tax revenue. New and expanded tourism promotion activities are
expected to include more advertising, sales and marketing (strategic planning, market research,
2 Id.
16
INFORMATIONAL MEMO
Page 7
creative development, media placement, sales activities, hosting tourism industry events). New
regional sales and marketing efforts could focus on small to mid -size meetings and events,
multi - property meetings and events, Canadian market development, niche markets including
urban, adventure, cultural, sports, incentive, and geo- tourism; group tour product development,
FAM tours for targeted customers, public relations programs including press /travel writer tours
and coverage, and sporting event marketing enhancement.
Tukwila Lodging Tax Advisory Committee: Over the last year, the City of Tukwila's Lodging
Tax Advisory Committee has received informational updates on the possibility of a TPA. City
staff has not brought the item to a vote in order to complete additional research and receive City
Council feedback on the various options. In general, the discussion at LTAC has been very
supportive of forming a TPA.
Tukwila Hoteliers: Managers representing eight Tukwila hotels submitted a letter dated March
29, 2012 to the Tukwila City Council requesting the City form a TPA (attached). City staff has
not yet performed outreach to hoteliers not represented on the letter.
Chamber of Commerce: The Southwest King County Chamber of Commerce provided letters
dated March 29, 2012 and November 30, 2012 to the City of Tukwila expressing support for the
creation of a TPA (attached).
City of SeaTac: On 10/11/11 The SeaTac City Council Administration and Finance Committee
received an informational briefing and written materials on the formation of a TPA and potential
organizational structures (attached). After multiple conceptual discussions over several months
the City's Hotel /Motel Tax Advisory Committee (HMAC) received a detailed briefing on the TPA
and PDA concepts, including the distribution of written materials that served as the basis for the
discussion. At the 6/12/12 City Council Study Session staff presented an Agenda Bill (attached)
that authorized the City Manager to execute an agreement for legal services from Pacifica Law
Group. The purpose of the agreement was to begin the preparation of the required
documentation for the formation of the TPA. This agreement was approved by Council action on
6/26/12 and formally executed on 6/28/12. No actual drafting of documents has been approved
pending the decision of the City of Tukwila whether to move forward with the formation of the
TPA. After analysis of potential organizational structures and discussions with both the HMAC
and the TPA Ratepayers Committee, staff recommended the PDA as the best option for the
organizational structure to oversee the operation of the TPA. On 9/25/12 the Ratepayers
Committee provided the SeaTac City Manager a letter that indicated strong support for both the
TPA and the PDA and urged that the development of legal documentation move forward
expeditiously. In each HMAC meeting that followed, the committee either made formal motions
or asked that the City move forward with preparation of the legal documents pending Tukwila's
decision, to retain the momentum that had been established. The City has yet to instruct the
Pacifica Law Group to begin work on the legal documents due to the lack of clarity on the City of
Tukwila's position on the TPA/PDA initiative.
City of Des Moines: The Des Moines City Council heard this item at their meeting of May 17,
2012 and directed their staff to work with the Cities of SeaTac and Tukwila in the creation of the
Seattle Southside Tourism Development Authority (minutes attached).
Conclusion
17
INFORMATIONAL MEMO
Page 8
City staff believes that a tourism promotion area is a very good opportunity for the City of
Tukwila and Southwest King County. It is important to recognize that a number of the City's
hoteliers are asking the City to impose the charge. Staff believes that hotelier support is a strong
indication that the TPA would increase tourist activity and benefit the City and its businesses.
Based upon the hotelier request, staff believes the additional benefits from the TPA would more
than offset any competitive disadvantage due to the additional room night fee.
If Council would like to consider forming a TPA, staff would engage the City of SeaTac, Seattle
Southside staff, hoteliers, and other cities to see if we can reach a consensus approach. It is
important to find a consensus because under State law the hotels need to submit a valid petition
and at least two cities need to act jointly or else the TPA cannot be formed. Staff would return to
Council when we have a consensus proposal outlining: the legislative authority roles and
responsibilities; the draft language for the petition, resolution, and ordinance; and the tourism
organization roles and responsibilities.
At this time, staff seeks feedback on:
1. Is the Council interested in forming a TPA?
2. How much influence should the City of Tukwila have over the expenditures and
operations of the tourism promotion area?
3. How involved would the Council like to be in the legislative authority or tourism
organization?
FINANCIAL IMPACT
At this point, it appears there would be no financial impact to the city other than staff time during
the formation process. If a TPA is formed it will generate additional funds for tourism promotion
which should result in additional lodging and sales tax revenue to the City.
RECOMMENDATION
The Committee is being asked to consider this item and move it forward to the March 25, 2012
Committee of the Whole meeting and the April 1 Regular meeting.
ATTACHMENTS
• Chart of tourism promotion areas in Washington State
• Chart of possible organizational relationships for a tourism promotion area
• Chart comparing tourism organization forms
• List of Tukwila hotels
• List of SeaTac hotels
• Minutes from City of SeaTac Administration and Finance Committee dated October 11, 2011
• Letter from Tukwila hoteliers dated March 29, 2012
• Letter from the Chamber of Commerce dated May 14, 2012
• Minutes from the Des Moines City Council meeting of May 17, 2012
• Minutes from the City of Tukwila's Finance and Safety Committee dated June 5, 2012
• City of SeaTac Agenda Bill #3433 from SeaTac study session on June 12, 2012
• City of SeaTac Ratepayers Committee letter dated September 25, 2012
• Letter from the Chamber of Commerce dated November 30, 2012
18
Tourism Promotion Areas in Washington State
yge
Snohomish County
All incorporated towns
and cities, plus the
County.
Snohomish County
Council.
County Department;
contract is in place for
some services by the
Snohomish County
Tourism Bureau, a
501(c)(6).
Spokane County2 3
Spokane County, City of
Spokane, and City of
Spokane Valley, and
City of Liberty Lake
Spokane County
Council
Pierce County
Cities of Tacoma,
Dupont, Fife, Gig
Harbor, Lakewood,
Sumner, Puyallup and
the unincorporated
areas of Pierce County.
Pierce County Council
Spokane Regional
Visitors and Convention
Bureau, a 501(c)(6)
organization
Tacoma Regional
Convention and Visitor
Bureau, a 501(c)(6)
Vancouver -Clark
County TPA4
City of Vancouver and
Clark County
Clark County Council
Southwest Washington
Convention & Visitors
Bureau, a 501(c)(6).
City of Selah5
City of Selah
City of Selah City
Council.
Part of the funding
remain with the City;
contract is also in place
with the Yakima Valley
Tourism and
Convention Bureau, a
501(c)(6).
City of Union Gapb
City of Union Gap
Union Gap City Council
Contract in place with
private person; and
some funds are
provided with the
Yakima Valley Tourism
and Convention Bureau.
City of Yakima'
City of Yakima
Yakima City Council
Yakima Valley Tourism
and Convention Bureau.
City of Wenatchee
City of Wenatchee
Wenatchee City Council
Was the Tourism
Bureau, a 501(c)(6);
however, the contract
has lapsed and the
Chamber of Commerce
is expected to assume
the services9.
1 Phone call with Snohomish County TPA Coordinator on February 20, 2013.
2 ftp:/ /ftp.spokanecounty.org /Adobe %20Files /11- 0172.pdf.
3 http: / /www.mrsc.org /orris /151o127.pdf
4 Email from Clark County Economic Development Department on February 25, 2013.
5 Phone call with Selah Parks and Recreation Department on February 26, 2013
6 Phone call with Yakima Valley Tourism and Convention Bureau on February 26, 2013.
' Phone call with Yakima Valley Tourism and Convention Bureau on February 26, 2013.
8 Phone call with City of Wenatchee on February 22, 2013.
9 Based on phone conversation with City of Wenatchee staff on February 22, 2013.
19
Tri- Cities Area TPA10
Cities of Richmond.
Pasco and Kennewick.
Each City Council has
remained as the
legislative authority for
their respective city.
Tri- Cities Visitor and
Convention Bureau, a
501(c)(6).
Walla Wall TPA"
City of Walla Walla
Walla Walla City
Council.
Tourism Walla Walla, a
501(c)(6).
Thurston County"
(Proposed)
Thurston County and
cities of Lacey, YeIm,
Olympia and Tumwater.
Proposed to be
Thurston County Board
of Commissioners
Proposed to be the
Olympia, Lacey,
Tumwater Visitor and
Convention Bureau, a
501(c)(6).
Kitsap County'
(Proposed)
Not yet formed, but
could include all the
cities and the County.
Proposed to be the
Kitsap County Council.
It may be the Kitsap
Peninsula Visitor and
Convention Bureau, a
501(c)(6).
10 Phone call with Tri- Cities Visitor and Convention Bureau on February 26, 2013
11 Phone call with Tourism Walla Walla on February 26, 2013 and City of Walla Walla on February 27, 2013.
12 Phone call with Olympia, Lacey, Tumwater Visitor and Convention Bureau on February 25, 2013.
13 Phone call with Kitsap Peninsula Visitor and Convention Bureau on February 21, 2013.
20
Tourism Promotion Area
Possible Organizational Relationships
Option 1 and 2
City of Tukwila
1
City of SeaTac
1
Other Cities
Interlocal
Agreement (ILA)
V
One City Council
Serves as the
Legislative Authority
• Enacts lodging charge
• Meets at least once per year
A
Contract
/ Tourism
Organization
• PDA, 501 -C -6 or other
form
• Board: membership per
bylaws, most or all
hoteliers, meets
frequently
• Operates as a tourism
destination marketing
organization
• Sets budget
• Manages work
• Controls day to day use of
funds
• Reports outcomes
1
Note: State law requires a TPA to
be adopted by a legislative
authority through an ordinance.
The board of the legislative
authority must be elected
officials.
Note: This is an example of one possible arrangement of organizations' roles
and responsibilities and is intended to facilitate discussion.
21
Tourism Promotion Area
Possible Organizational Relationships
Option 3
City of Tukwila
1
City of SeaTac
1 / 1
Other Cities
1
Interlocal
Agreement (ILA)
Y
[ Combined
Legislative Authority
• Members from city councils
• Enacts lodging charge
• Meets at least once per year
Contract
A
Y
Tourism
Organization
• PDA, 501 -C -6 or other
form
• Board: membership per
bylaws, most or all
hoteliers, meets
frequently
• Operates as a tourism
destination marketing
organization
• Sets budget
• Manages work
• Controls day to day use of
funds
Reports outcomes
Note: State law requires a TPA to
be adopted by a legislative
authority through an ordinance.
The board of the legislative
authority must be elected
officials.
Note: This is an example of one possible arrangement of organizations' roles
and responsibilities and is intended to facilitate discussion.
22
Comparison of Possible Types of Organizational Structures for a Tourism Organization
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Hotels and Motels in Tukwila
Hotel Name
Example Classifications by Number of Rooms
All 40+ 60+ 90+
Best Western Rivers Edge 146 146 146 146
Comfort Suites 138 138 138 138
Courtyard by Marriott Southcenter 149 149 149 149
Courtyard by Marriott- SeaTac 211 211 211 211
Days Inn Seattle South 119 119 119 119
Doubletree Guest Suites 219 219 219 219
Econo Lodge 47 47
Embassy Suites 238 238 238 238
Extended Stay America Tukwila 96 96 96 96
Great Bear Motor Inn (a) 35
Hampton Inn Tukwila 154 154 154 154
Homestead Studio Suites 94 94 94 94
Homewood Suites by Hilton 106 106 106 106
Knights Inn 54 54 -
Ramada Limited 68 68 68
Residence Inn by Marriott 144 144 144 144
Riverside Residence (a)
Spruce Motel 40 40
Americas Best Value 81 81 81
Jet Inn Motel 34
Travelers Choice 36
Travelodge 72 72 72
Total 2,281 2,176 2,035 1,814
Minimum needed for initiation petition (60 %) 1,306 1,221 1,088
Minimum needed for successful protest vote (50 + %) 1,089 1,018 907
Hotels who signed the 3/29/12 memo 1,200 1,200 1,200
Notes
(a) Room count information was unavailable at the time of this report.
(b) Hotel data provided by Seattle Southside Visitor Services 5/29/12
(c) Per RCW 35.101.020 an initiation petition must be signed by persons who operate
lodging businesses who would pay sixty percent or more of the proposed charges.
(d) Per RCW 35.101.070 the proposed action to create a tourism promotion area
must terminate if protested by the lodging businesses which would pay a majority of
the proposed charges.
(e) Hotels that signed the 3/29/12 memo to the Tukwila City Council
29
Hotels and Motels in SeaTac
Example Classifications by Number of Rooms
Hotel Name All 40+ 60+ 90+
Best Westem Airport Execute) 140 140 140 140
Cedarbrook Lodge 104 104 104 104
Clarion Hotel Seattle Airport 214 214 214 214
Westcoast Gateway Hotel 143 143 143 143
Comfort Inn & Suites SeaTac Airport 176 176 176 176
Days Inn Seattle SeaTac Airport 104 104 104 104
Doubletree Seattle Airport 850 850 850 850
Econo Lodge SeaTac Airport South Seattle 94 94 94 94
Fairfield Inn Seattle SeaTac Airport 146 146 146 146
Hampton Inn Seattle Airport 130 130 130 130
Hampton Inn and Suites (BMI Hospitality) 218 218 218 218
Hilton Seattle Airport & Conf Center 396 396 369 396
Holiday Inn Express & Suites Seattle SeaTac 171 171 171 171
Holiday Inn SeaTac International Airport 259 259 259 259
La Quinta Inn & Suites Seattle SeaTac 143 143 143 143
Marriott Seattle Airport 459 459 459 459
Motel 6 Seattle Airport 109 109 109 109
Motel 6 Seattle SeaTac Airport South 144 144 144 144
Motel 6 Seattle South 124 124 124 124
Quality Inn SeaTac Airport Seattle 104 104 104 104
Radisson Seattle Airport 204 204 204 204
Ramada Inn SeaTac 155 155 155 155
Red Lion Hotel Seattle Airport 144 144 144 144
Red Roof Inn Seattle Airport 152 152 152 152
Sleep Inn SeaTac Airport 105 105 105 105
Super 8 Seattle SeaTac Intrntl Arprt 119 119 119 119
Sutton Suites & Extended Stay 71 71 71
Jet Motel 51 51
Sandstone Inn 94 94 94 94
Skyway Inn 58 58 -
SeaTac Inn 39
SeaTac Crest Motor Inn 46 46 -
Rodeway lnn 59 59
New West Motel (a) -
Americas Best Value Airport Inn 50 50 -
5,575 5,536 5,245 5,201
Minimum needed for initiation petition (60 %)
Minimum needed for successful protest vote (50 + %)
Hotels who have indicated support
Hotel data provided by Seattle Southside Visitor Services 7/25/12
30
3,322 3,147 3,121
2,768 2,623 2,601
3,432 3,432 3,432
Administration and Finance Committee
Minutes
Members:
Gene Fisher, Chair
Tony Anderson
Rick Forschler
Tuesday, October 11, 2011
3:00 PM
Council Chambers
Present: Absent: Commence:
Break:
Commence:
Adjourn:
X
X
X
3:05 p.m.
3:47 p.m.
4:05 p.m.
4:19 p.m.
Note: Items 6 & 7 to be reviewed
iointiv with the Public Safety &
Justice Committee
Other Councilmembers Present: Ralph Shape, Pam Fernald
Staff Coordinator: Joyce Papke, Interim Finance Director
1. Council's HRANEBA
Program — Deputy
Mayor Fisher /Anh
Hoang
Informational Update
X Recommended for:
X Approval
Approval with modifications
Denial
X Referred to 10/25/11 RCM.
Human Resources Director, Anh Hoang distributed a draft memorandum
outlining three options for Council consideration with regard to their
HRANEBA contributions from the City. The three options are: 1) The
City would continue contributing to HRANEBA as it is now. The Council
would not need to take any action if this option were chosen; 2) Stop
contribution to HRANEBA and deposit specified dollar amount into a
deferred compensation plan set up for each Councilmember effective
January 1, 2014. From January, 2012 through December, 2013 the City
would continue contributing into each Councilmember's HRANEBA
account. 3) Stop contribution to HRANEBA effective January 1, 2012
and deposit a specified dollar amount into a deferred compensation plan
set up for the four positions elected for the 2012 -2015 term. The
HRANEBA contributions would cease for the remaining three
Councilmembers. The City's contribution into a deferred compensation
plan would commence for the remaining three Councilmembers at the
beginning of the next term, January 1, 2014. City Attorney Mary Bartolo
stated Council would need to take action by the 10/25/11 Council
meeting if there was a change. It was recommended an Ordinance be
written and presented at the next RCM for Option #2. If it does not pass,
it would default to Option #1 (no change).
31
A&F Minutes
October 11, 2011
Page 2 of 3
2. Draft 2012 Legislative
Agenda — Jeff Robinson
X Informational Update
Recommended for:
Approval
Approval with modifications
Denial
Referred to .
Economic Development Manager Jeff Robinson distributed a draft of the
2012 Legislative Agenda for the Committee's review. The primary issues
of particular importance to the City of SeaTac are : 1) Transportation
Funding; 2) Infrastructure; 3) Light Rail Station Area; and 4) Stormwater
Capacity Grants. The purpose for presenting the draft was to give the
Council time and opportunity to respond to the issues. It was suggested
that there be a one hour workshop in November or December to discuss
the issues prior to bringing it to full Council. Mr. Robinson requested that
additional comments or questions be addressed to him electronically.
3 Seattle Southside
Tourism Promotion Area
— Jeff Robinson, Jeff
Hart, G.M. Seattle
Marriott, Lynn Wallace,
President, SW King
County Chamber of
Commerce
X Informational Update
Recommended for:
Approval
Approval with modifications
Denial
Referred to .
Economic Development Manager, Jeff Robinson reported on the
potential for the creation of a TPA in the Seattle Southside market area.
A least two cities have to participate and initial discussions have included
Tukwila and Kent. The revenue generated by a per room night surcharge
would be deposited into a TPA account for the express purpose of
tourism marketing activities. The estimated revenue would be between
approximately $1 million and $2 million a year. Mr. Robinson reported
that there will be meetings with the other cities to lay the ground work. A
"Frequently Asked Questions" and information sheet is available for the
Council's information.
4. City Councilmembers
and City Manager Future
Travel Authorizations
and Completed Travel
Approval of City Credit
Card Payments and
Personal
Reimbursements —
Joyce Papke
Informational Update
X Recommended for:
X Approval
Approval with modifications
Denial
X Referred to 10/25/11 RCM .
Travel authorizations were reviewed by A & F Committee and
recommended for approval at the next regular Council meeting.
5. Next Meeting
November 8, 2011
32
Ayes
fit kkliA7
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TO: Mayor Jim Haggerton and City of Tukwila Council members
FROM: Tukwila Hotel TPA Ratepayers
DATE: 3 /29/2012
SUBJECT: Seattle Southside Tourism Promotion Area and Tourism Development
Authority
A Tourism Promotion Area (TPA) can only be created if the legislative authority receives
an initiation petition signed by the hotel businesses that would pay 60 percent of the self -
imposed surcharge (this is not a tax). As these funds would be dedicated for tourism
promotion activities o_ my as stated by RCW 35.101; we the potential ratepayers believe
this initiative if spent effectively would bring more visitors to the City resulting in more
visitor spending that would: bolster hotel occupancy, protect current jobs, create new
jobs, increase business at restaurants and retail stores, and increase patronage at arts,
cultural and sporting venues.
Hoteliers are very supportive of forming a TPA and anxious to begin the process.
However, as hoteliers we believe we are in the best position to understand and determine
best uses for effectively promoting tourism in a way that generates overnights stays in our
hotels. The lodging association has seen successful and some not so successful
implementations of public funds for tourism promotion statewide. With lessons learned,
we wish to bring forward a new and innovative proposal for the City Council's
consideration that could result in an additional $1.5 to $2.5 million annually through a
TPA that would enhance and build on Seattle Southside Visitor Services' already
successful destination marketing efforts and would provide for public oversight but
active, private sector participation. A win/win for all involved parties.
Potential TPA ratepayers prefer that the TPA be managed and implemented through a
Public Development Authority (PDA). We wish to work with the Cities to develop a
Public Development Authority or "Seattle Southside Tourism Development Authority"
(SSTDA).
After careful analysis, we (potential TPA ratepayers) believe this option would provide:
• Anatomy and oversight of the new TPA funds;
• Assurance the funds would be used effectively to generate ovemight hotel stays;
• Provide for a TPA disestablishment policy should the ratepayers desire to do so in the
future; and
• Redirect (but not increase) the current lodging tax revenues currently supporting Seattle
Southside's marketing program.
33
Furthermore, we believe there are many benefits to the participating Cities:
• Permits the participating cities to delegate tourism services to individuals with expertise;
• Liability and financial risk to the participating cities is limited; and
• Provides for effective oversight of public funds.
Ratepayers want to work with the Cities to form a TPA and SSTDA. Any other
organizational structure such as City dept. or 501c would not provide ratepayers with the
above mentioned desires. Therefore, the initiation petitions will not precede until the
above concept and the following draft documents are created and generally supported by
all affected parties (1) Inter -local Agreement; (2) SSTDA Charter and Bylaws; (3) model
ordinance to be adopted by participating cities.
We encourage Tukwila City Administration to make this a high priority so we can all
move forward. The Cities of Des Moines and SeaTac are already on board and SeaTac
has agreed to sponsor the public entity SSTDA.
Thanks for your continued support as always!
dfc GakA , ate: : 1/`
Hotel Name:
Signature:
Hotel Name: HrimPn.7) /11' 1
Signatu;L-41//, ZP
Hotel Name: P-esicl -e-Lc-e- tnn 6y frici`r; °•V
7ku•► Ik
LE,(1di:ih«4ate:
Signature:
Hotel Name:
Signature:
Hotel Name:
Signature:
Date:
Date:
(AkiceiSSU t ta Pte rcti i Date: --q2,A (t
.c cwt\
Hotel Name:
Signature.
X K v'l E'c\ S +e, PrrviR
• • •Lc.Date: Lj / Z) Z
34
Hotel Name:
Signature:
Hotel N
Signa
y1�5 }�i ci 5-tuv; O Su• -'recz Date: L l 2) 12
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Hotel Name:
Signature:
Hotel Name:
Signature:
Hotel Name:
Signature:
Hotel Name:
Signature:
Hotel Name:
Signature:
Date:
Date:
Date:
Date:
Date:
35
36
uut /sw st King Climb(
Chamber of CommErcE
May 14, 2012
Derek Speck
Economic Development Administrator
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
Dear Derek:
RECEIVED
MAY 21 2012
CITY OF TUKWILA
MAYOR'S OFFICE
The Southwest King County Chamber of Commerce supports area hotels and their efforts
to create a Tourism Promotion Area for Seattle Southside. As major employers in our
region, these entities are taking innovative steps to improve the marketing and promotion
efforts of Southwest King County communities.
By implementing the TPA, this would give Seattle Southside a boost in the marketing
efforts of our area, which is critical, staying competitive with the other community's
regional tourism markets. The Chamber also supports the opportunity to increase the
number of room nights our local hotels should see with the additional marketing dollars.
Our Chamber supports the creation of the Tourism Promotion Area and the hotels self -
assessment to fund new programs. The Chamber gives our full support to this project to
ensure the future of a viable tourism industry in Southwest King County.
Lynn Wallace
President/CEO
Phone: 206-575-1633
Fax: 206-575-2007
Web: www.swkcc:org
14220 Interurban Avenue South, #134 Tukwila, WA 98168
37
38
Consent Agenda Item #4
AGENDA ITEM_
BUSINESS OF THE CITY COUNCIL
City of Des Moines, WA
FOR AGENDA OF: May 17, 2012
DEPT. OF ORIGIN: Economic Development
DATE SUBMITTED: May 15, 2012
SUBJECT: Seattle Southside Tourism
Development Authority
ATTACHMENTS: Overview, Seattle Southside
Tourism Promotion Area FAQ, Current Revenue
and Service Structure, New Revenue and Service
Structure
CLEARANCES:
[ ] Legal
[ ] Finance
[X] Economic Development
[ ] Parks, Recreation & Senior S &rvices
[ ] Planning, Building & PW
APPROVED BY CITY MA
FOR SUBMITTAL:
Purpose and Recommendation
The purpose of this agenda item is to seek Council direction to work with the Cities of Tukwila and
SeaTac in the creation of the Seattle Southside Tourism Development Authority.
Suggested Motion
First Motion: I move to give direction to the City Manager and staff of the City of Des Moines to work
with the other participating cities in the creation of the Seattle Southside Tourism Development
Authority.
Background
Seattle Southside Visitor Services (SSVS) is a tourism promotion program administered by the City of
Tukwila, serving the cities of SeaTac, Kent and Des Moines (participating cities) pursuant to separate
interlocal agreements (ILA's).
27
1
39
SSVS has provided tourism promotion to participating cities since 2002 and has demonstrated steady
growth and excellent Return on Investment (ROI). SSVS receives approximately $20,000 annually in
lodging tax revenue from motels that are located in the City of Des Moines.
Discussion
As outlined by Director Katherine Kertzruan at the April 26th, meeting, SSVS is proposing to fonn a
new entity called Seattle Southside Tourism Promotion Area (the SSTPA), which will collect an amount
not to exceed $2.00 per night from participating businesses. The City of Des Moines Hotel /Motel Tax
Advisory Committee approved the creation of this new Tourism Promotion Area at their last meeting, as
did the Hotel/Motel Tax Advisory Committee of SeaTac.
The SSTPA will create a new source of revenue, which will be used together with the existing lodging
tax revenues, to fund the Seattle Southside Tourism Development Authority (SSTDA). The SS'IDA
will continue - and expand - the tourism promotion services currently provided by SSVS.
In order to move forward with the plan to create the SSTPA, and subsequently SSTDA, SSVS needs two
participating cities. SSVS has requested that Des Moines be one of these cities, and seeks Council
direction in support of this request.
Alternatives
Do not carry the motion.
Financial Impact
None.
Recommendation /Conclusion:
Des Moines stands to benefit from the expansion of SVSS as it transitions into the (larger and better
funded) SSTDA. Tourism promotion services will grow, with no additional revenues required from the
City beyond the lodging taxes currently allocated.
40
Finance & Safety Committee Minutes June 5, 2012 — Page 2
C. Tourism Promotion Area
As information only, staff provided the Committee information regarding state law, which allows the
formation of a tourism promotion area (TPA) that permits hoteliers, with 40 or more lodging units, the
ability to charge up to $2 per hotel room per night specifically for tourism promotion. This new source of
revenue would be used in conjunction with current lodging tax funding for tourism promotion services.
Committee Members were complimentary of the information memo provided, stated that it provided a good
introduction, and are generally supportive of the TPA idea. However, they stated there are many questions
that need to be answered and feel that additional, specific information needs to be provided prior to sending
this to full Council for discussion. Committee Chair Quinn reminded the group that it is the Committee's
responsibility to ensure due diligence has been conducted, and whenever possible, move items fonvard with
a recommendation. The Committee would like staff to return to Committee with additional information
including:
• What does the City of Tukwila Administration recommend and why?
• Who should belong to this organization, and who runs it?
• How does the organization work'?
• What legislative authority involved?
• What will be required from the City in order to administrate it?
• What is the timeline for implementation?
• What are the staffing requirements?
• Provide specific examples from other jurisdictions and identify the jurisdictions that would
participate in this TPA.
Many guests were in attendance at the meeting, so rather than delay additional discussion, Committee Chair
Quinn asked those in attendance if there was any information they would like to share. Comments are
summarized below.
• Charles Lee with Comfort Suites stated that he was not in favor of the TPA, and that, as a hotelier
with over 60 rooms, he is concerned about the impact.
• Mike Schabbing with the Courtyard and as a member of the Tukwila Lodging Tax Advisory Board
commented that outreach has been made with hotels since October, and about 75% of hotels would
like to pursue this further. These hotels understand the importance and value in the charge. He also
stated that this is a common practice throughout the area, including Pierce County, Spokane, and
Seattle.
• Lynn Wallace with the Southwest King County Chamber of Commerce stated that the Chamber is
in support of the TPA, noting that it will help southwest King County to be a player in the region.
Ms. Wallace was working for the Best Western in Puyallup when Pierce County formed a TPA.
She commented that once the fee was explained to patrons, no one objected to incurring the charge.
• Jeff Robinson, City of SeaTac Economic Development Manager, stated that the State of
Washington is basically out of the tourism business: therefore. we have lost that ability_ to get the
State to market on the hoteliers' behalf.
Katherine Kertzman commented that this would be the first TPA in King County. RETURN TO FUTURE
FINANCE & SAFETY COMMITTEE WITH ADDITIONAL INFORMATION.
D. Interlocal Agreement: Animal Control Services
Staff is seeking Council approval to enter into an interlocal agreement with Regional Animal Services of
King County (RASKC) effective 2013 -2015. The current agreement will expire on December 31, 2012, and
due to notification from the City of Auburn that they will not be renewing, a new contract has been
developed.
41
42
SeaTac City Council
REQUEST FOR COUNCIL ACTION
Department Prepared by: C.E.D.
Agenda Bill #: 3433
TITLE: An Ordinance authorizing the City Manager to enter into an agreement for legal services with the
Pacifica Law Group to assist in the creation of the Seattle Southside Tourism Promotion Area and a Public
Development Authority, and amending the 2012 Annual City Budget.
X Ordinance _Resolution _Motion _Info. Only _Other
Date Council Action Requested: RCM 06/26/12
Ord/Res Exhibits:
Review Dates: A &F: 10/11/11; H/M Committee: 03/14/12; 04/11/12; 05/9/12; CSS: 06/12/12
Prepared By: Jeff Robinson, Economic Development Manager
June 5, 2012
Director: City Attorney:
Finance: BARS #: 107.000.13.557.30.41.000
City Manager: Applicable Fund Name: Hotel/Motel Tax Fund
SUMMARY: This proposed Ordinance authorizes the City Manager to enter into a legal agreement and
execute a Letter of Engagement with the Pacifica Law Group to prepare documentation for the
establishment of the Southside Seattle Tourism Promotion Area (SSTPA) and Public Development
Authority (PDA). The proposed Ordinance also amends the 2012 Annual City Budget to appropriate
funding for this amendment.
DISCUSSION / ANALYSIS / ISSUES: Tourism Promotion Areas (TPA) were created by State statute in
2003 with amendments in 2009 for the purpose of furthering additional positive impacts for tourism
spending in local communities. The establishment of a TPA requires the participation of two or more local
governments through an Interlocal Agreement (ILA). The SSTPA is envisioned as a joint effort by the
cities of SeaTac and Tukwila. The establishment of the TPA also requires a petition from the hotels that
will pay a minimum of 60% of the self - imposed assessments within the TPA.
The SeaTac Hotel/Motel Advisory Committee and SeaTac lodging sector supports the TPA concept and
also the plan to create a Public Development Authority (PDA) chartered by the City of SeaTac.
Because SeaTac will most likely sponsor the PDA,,- SeaTac would have the-Pacifica Law Group represent
'its -interests first and foremost. SeaTac's role will be to take the lead at this point (for phase one) to
facilitate the partnership with hoteliers, SSVS staff, and the potential partnering cities of Des Moines, Kent
and Tukwila to create a TPA and a PDA. As-soon: =as the agreement is reached and the TPA implemented
with =the frameworkfor the PDA established,--the-PDA -will-assume legal costs (for phase two) forming the
PDA:- The legal documents to be drafted include the required Petition, Resolutions, Ordinances, ILAs and
PDA Charter.
RECOMMENDATION(S): It is recommended that the proposed Ordinance be adopted.
FISCAL IMPACT: The proposed amendment increases expenditures in the Hotel/Motel Tax Fund by
$20,000 to fund this amendment.
ALTERNATIVE(S): Do not adopt the Ordinance.
ATTACHMENTS: 1) Memorandum dated June 8, 2012 regarding the Seattle Southside Tourism
Promotion Area
Agenda Bill Form Revised: February 15, 2011
43
44
ORDINANCE NO.
AN ORDINANCE of the City Council of the City of SeaTac,
Washington, amending the 2012 Annual Budget and authorizing the
City Manager to execute a Letter of Engagement with Pacifica Law
Group for the preparation of legal documents for the establishment of
the Seattle Southside Tourism Promotion Area and Tourism
Development Authority.
WHEREAS, the SeaTac City Council has reviewed Agenda Bill #3433, submitted by the
Community and Economic Development Depailuient; and
WHEREAS, the City's 2012 Annual Budget includes a line -item for Cooperative
Tourism Promotion within Fund 107, the Hotel/Motel Tax Fund; and
WHEREAS, it is now proposed that additional funding be directed toward the
establishment of a Tourism Promotion Area and Tourism Development Authority as allowed by
State Statute; and
WHEREAS, an amendment to the City's 2012 Annual City Budget is necessary to
provide additional appropriation authority to pay for legal costs not previously identified; and
WHEREAS, the additional appropriation will utilize Hotel/Motel Tax Revenues;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEATAC,
WASHINGTON, DO ORDAIN as follows:
Section 1. The 2012 Annual City Budget shall be amended to increase expenditures by
$20,000.00 in the Hotel /Motel tax Fund #107.
Section 2. The City Manager is authorized to sign a Letter of Engagement with Pacifica. Law
group in substantially similar form as attached hereto as Exhibit A, for the preparation of lea`
documents for the establishment of the Seattle Southside Tourism Promotion Area and Tourism
Development Authority.
Section 3. This Ordinance shall not be codified, and shall be in full force and effect five (5)
days after passage and publication as required by law.
Page - 1
45
ADOPTED this day of , 2012, and signed in authentication thereof
on this day of , 2012.
ATTEST:
Kristina Gregg, City Clerk
Approved as to Form:
Mary E. Mirante Bartolo, City Attorney
[Effective Date:
[Tourism Promotion Area]
46
CITY OF SEATAC
Tony Anderson, Mayor
Page - 2
Attachment 1
D�.
�990 MEMORANDUM
To: Mayor and City Council
Through: Todd Cutts, City Manager
From: Jeff Robinson, Economic Development Mana
Date: June 8, 2012
Re: Tourism Promotion Area — Overview and Implementation
ISSUE
Hoteliers in southwest King County are preparing to initiate the formation of a Tourism
Promotion Area ( "TPA ") by petitioning the legislative bodies of Tukwila, SeaTac and Des Moines
pursuant to legislation passed in 2009. Formation of a TPA would permit qualifying hotels to
impose up to a $2.00 per room, per night surcharge within the participating municipalities. The
surcharge is not a tax, but a self- imposed special assessment that would be dedicated to
funding tourism promotion within the TPA area. An overview of tourism promotion areas in
Washington are attached as Attachment 1.
The intent of this memorandum is to provide information about TPAs in Washington, inform the
Council on the proposed TPA, and to request that the Council give direction to the SeaTac City
Manager and staff to work with the other participating cities and Seattle Southside Visitor
Services ( "SSVS ") staff to begin the formation and implementation of the Seattle Southside
Tourism Promotion Area and the formation of the Seattle Southside Tourism Development
Authority ( "SSTDA ").
This memorandum also requests that the Council amend the 2012 budget in the amount of
$20K and direct the City Manager to execute a "Letter of Engagement" with Pacifica Law Group
LLP (PLG) to assist in the formation and implementation of the Southside Tourism Promotion
Area and the formation of the SSTDA and related matters (collectively, the "Project "). The
formal engagement of PLG is properly with the City of SeaTac as the City that will most likely
charter the SSTDA to facilitate the Project.
BACKGROUND
47
INFORMATIONAL MEMO
Page 2
The City of Tukwila currently administers Seattle Southside Visitors Service, a $1.2 million
tourism promotion program. SSVS is funded by lodging taxes imposed and collected within the
cities of Tukwila, SeaTac, Kent, and Des Moines and remitted to SSVS in exchange for tourism
promotion services. Staffing at SSVS is provided by the City of Tukwila.
In 2010, hoteliers attending the SeaTac Hotel Motel Advisory Committee approached Jeff
Robinson, Economic Development Manager of the City of SeaTac, and Katherine Kertzman,
Executive Director of Seattle Southside Visitor Services, with the idea of forming a TPA for
Seattle Southside to generate additional revenue for tourism promotion. The initiative is not
intended to supplant lodging taxes currently funding the SSVS program, but to provide an
additional revenue stream to keep the program competitive with other Destination Marketing
Organizations in Washington State, bring more visitors to the area, bolster hotel occupancy,
protect current jobs, create new jobs, increase business at restaurants and retail stores, and
increase patronage at arts, cultural and sporting venues in an ever increasingly competitive
marketplace.
Depending on the rate of the assessment, the proposed TPA is projected to provide
approximately $2.5 million of additional revenue for tourism promotion each year. The amount
of revenue raised depends on the classifications used, occupancy rates at lodging businesses
and any exceptions the hoteliers recommend in the initiation petition. For example, if a
classification is chosen under which only properties with 61 or more rooms would be subject to
the surcharge, minus four exceptions (the surcharge would not be imposed on rooms (a) where
the occupant has stayed 30 or more days, (b) that are provided by a ratepayer to guests without
charge for promotional purposes, (c) that are available exclusively to members or guests of
members of a private member -owned club or its reciprocal clubs or (d) that are airline crew
contract room nights as is done in other TPAs around the state), the proposed TPA would
include 39 hotel properties located within city limits of the City of Tukwila, City of SeaTac and
City of Des Moines and raise an estimated $2.5 million per year.
TPA special assessment revenue may only be used to fund tourism promotion. Tourism
promotion activities within the proposed TPA are expected to include:
• advertising, sales and marketing services (strategic planning, market research, creative
development, media placement, sales activities, hosting tourism industry events relating
to promotion and marketing, etc.), and administrative and management support for such
services.
• New regional sales and marketing efforts could focus on items such as:
♦ small to mid -sized meetings & events
♦ multi - property meetings & events
♦ Canadian market development
♦ packaging with direct sales opportunities
♦ niche markets including urban, adventure, cultural, sports, incentive and
geotourism
♦ group tour product development
C:IDocuments and Settings \jrobinson\My Documents\SSTPA \SSTPA Council memo.doc x
48
INFORMATIONAL MEMO
Page 3
♦ FAM tours for targeted customers
♦ public relation programs including press /travel writer tours and coverage
♦ sporting event marketing enhancement
The TPA proposal raised a number of organizational questions, and consequently SSVS staff
and hoteliers reviewed a number of options for implementing and managing this potential new
revenue source. The entrepreneurial nature of tourism promotion programs requires the active
participation of members of the hospitality industry, the multiple revenue streams derived from
taxes, donations, TPA assessment revenue and elsewhere require coordination, and the mix of
public and private funding and staffing requires oversight and accountability. The options
investigated by hoteliers and SSVS staff include whether the TPA should be a stand -alone
entity, whether it should be administered by SSVS or one of the participating cities (e.g. as a city
program), or whether the current SSVS structure should be replaced by a new entity to receive
the two separate dedicated revenue sources (lodging taxes and TPA special assessment funds)
and provide tourism related services currently provided by SSVS. SSVS staff and hoteliers
considered formation of a 501(c) (3) corporation, a 501(c) (6) corporation, and a public
development authority formed under chapter 35.21 RCW.
In addition SSVS staff and hoteliers explored various options for how TPA special assessments
could be collected and distributed. Under chapter 35.101 RCW, special assessments are
collected by the lodging businesses from hotel guests, and remitted to the Department of
Revenue. The State Treasurer then remits the funds on a monthly basis to the legislative
authority or authorities on whose behalf the funds were collected. The charts and materials
attached as Attachment 2 summarize the options considered.
ANALYSIS
Hoteliers are highly supportive of forming a TPA and anxious to begin the process.
Furthermore, they clearly prefer that the TPA be managed and implemented through a public
development authority created pursuant to an interlocal agreement with public oversight but
active, private sector participation. The public development authority model optimizes the scale
and efficiency of tourist promotion; encourages participation by hoteliers and other advocates;
and provides for proper and effective oversight of public funds.
A draft petition and talking points summarizing the proposed TPA and the public development
authority supported by the hoteliers are attached as Attachment 3. The draft petition and
talking points are provided for informational purposes only — at this time a petition has not been
executed by qualified lodging businesses as potential TPA ratepayers desire to review the
working drafts of the following documents prior to executing the petition: (1) Interlocal
Agreement; (2) SSTDA Charter and Bylaws; (3) SSTDA — City of Tukwila Support Services
Agreement; (4) model ordinance to be adopted by participating cities; and (5) TPA Initiation
Petition with summary points. SSVS and City staff will work with PLG on drafting these initial
C:\Documents and Settingsljrobinson\My Documents \SSTPA\SSTPA Council memo.docx
49
INFORMATIONAL MEMO
Page 4
documents which, with respect to documents (1) through (4), will require subsequent Council
approval.
RECOMMENDATION
Informational only; Discussion of TPA and PDA will be scheduled for June 12, 2012 Council
Study Session
ATTACHMENTS
Attachment 1 — Overview of Tourism Promotion Areas in Washington
Attachment 2 — TPA Revenue Options
Attachment 3 — Draft Petition and Talking Points
Attachment 4 — Letter of Engagement
C:1Documents and Settings\jrobinson\My Documents \SSTPA\SSTPA Council memo.docx
50
Page 1 of 4
TO: Todd Cutts, City Manager City of SeaTac City
PROM: City of SeaTac TPA Ratepayers Committee
DATE: September 25, 2012
SUBJECT: Tourism Promotion Area (TPA) and Public Development Authority (PDA) Letter of
Support
A Tourism Promotion Area can only be created if the legislative authority receives an initiation petition signed
by the hotel businesses that would pay 60% of the assessment (this is not a tax). Hoteliers in Seattle Southside
are preparing to initiate the formation of a TPA. Formation of a TPA would permit qualifying hotels to impose
up to a $2.00 per room, per night assessment within the participating municipalities that would be dedicated to
funding tourism promotion on behalf of the TPA zone.
The City of SeaTac has signed a letter of engagement with Pacifica Law Group (PLG) to begin development of
a Seattle Southside Tourism Development Authority (SSTDA), the potential TPA ratepayers in SeaTac,
Tukwila and Des Moines stated desired management structure for oversight of the new funds. The City of
SeaTac will likely be the sponsoring city for the SSTDA which will govern the use of additional funds collected
through the new hotel TPA assessment. Potential SeaTac TPA ratepayers recommend the City of SeaTac
continue moving forward and begin constructing the essential legal documents (in partnership with the City of
Des Moines and potential TPA ratepayers) that would create a SSTDA wherein hoteliers will initiate the TPA
petitions. Hoteliers in SeaTac appreciate the City of Tukwila's attention is currently focused on other urgencies
and welcome their participation in the process as soon as city resources can be freed up. The City of Kent
hoteliers are in the midst of determining their level of interest and support for a TPA. In the meantime, progress
can be made toward drafting the SSTDA legal documents that may result in the TPA being initiated by hoteliers
in each participating city before the next legislative session. As hoteliers, we believe this is the best strategy for
keeping the momentum alive.
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51
Page 3 of 4
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52
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La Quinta
Mason Schumacher
Marriott Seattle Airport
Drew Hayden
Motel 6 Seattle Airport
Cynthia Sleeman
Motel 6 Seattle South
Quality Inn
Peter Shin
Radissson Seattle
Michael Pitstick
Ramada Inn
Alim Ratanshi
Red Lion Hotel
Shawn Darling`
Red Roof Inn
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Super 8 Seattle Airport
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Sandstone Inn
Bob Sheen
Embassy Suites- Tukwila
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56
���
i����
Cha00bor of Co
November 30, 2012
'1111���
Greetings Mayor Haggerton and City Councilmembers,
The Southwest King County Chamber would like to first and foremost congratutate Derek Speck and the
city administration on the recent signing of a DDA for Tukwila Village. We are excited for the growth this
business development will bring to Tukwila and the surrounding communfty.
As the business advocate for Tukwila and neighboring cities, the Chamber seeks economic development
opportunities that benefit Iocal businesses and cities alike through public and private partnerships. The
area hotels of Tukwila and SeaTac represented by the Chamber have proposed an establishment of a
Tourism Promotion Area (TPA) to help increase tourism to Southwest King County. The TPA would allow
hoba|abuasoeaa$2parrnomnighttofundondunaoboonavenueoouroafortouhampnmmodon.Thioself-
assessment would generate approximately $2.5 million per year to promote local tourism, and position
Southwest King County as a major contender against the tourism dollars of King and Pierce counties.
Along with the establishment of the TPA, the Chamber also supports the hotels only recommendation of a
Public Development Authority (PDA)for the management struct re and oversight of the funds used by the
TPA. The City of Tukwila should already be familiar with PDA's and their structure, since Tukwila does
have an established PDA and interlocal agreement with SCORE jail. The PDA management structure
allows the hotels (ratepayers) to have autonomy and oversight of the use of funds through a Board of
Directors, while still maintaining the current lodging tax dollars collected. The City of SeaTac has agreed
to be the sponsoring city of the TPA, and has hired Pacific Law Group to begin drafting necessary
documents for review.
The establishment of a TPA managed by a PDA structure requires swift action. The TPA funds will not
only build hotel occupancies, they will boost the sales and revenues of tourism-related businesses.
Increased TPA revenues mean increased sales tax revenues to the cities. lfwe fail to act soon, there
is a real possibility the state could implement its own assessment, which would eliminate our ability to
create o local TPA. Losing local control mf TPA dollars would cost our reqion $2.5 milhion annually
to promote local tourism, which could generate up to $20 million in additional taxable revenue to the
cities.
Our region cannot afford to lose ground to the TPAs of Seattle and Tacoma, not to mention other regional
competitors. We must take advantage of this opportunity soon in order to keep Southwest King County
competitive and flourishing. The Southwest King County Chamber of Commerce fully endorses and
supports the efforts of the local area hotels of Tukwila and SeaTac and strongly urges the City of Tukwila
to make this public/private partnership a priority
Sincerely,
Ra dy Coplen
2013 Chair
Louise Strander
2013 Chair-Elect
58
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
March 5, 2013 — 5:30p.m.; Conference Room #3
City of Tukwila
Finance and Safety Committee
PRESENT
Councilmembers: Dennis Robertson, Chair; Verna Seal and De'Sean Quinn
Staff: David Cline, Vicky Carlsen, Katherine Kertzman, Kristina Thorne, Ashley Comar, Brandon
Miles, Derek Speck, Dennis McOmber and Kimberly Matej
Guests: Mike Schabbing, Courtyard; Vickie Molzer, Holiday Inn Express; Caroline Curtis, BMI
Hospitality; Carol Kolson, Southwest King County Chamber of Commerce and Homestreet
Bank; Maureen Huffman, Embassy Suites; Scott Ostrander, Cedarbrook Lodge; Brenna
Arnesen, Southwest King County Chamber of Commerce; Randy Copley, Southwest King
County Chamber of Commerce; and Chuck Parrish, resident
CALL TO ORDER: Committee Chair Robertson called the meeting to order at 5:34 p.m.
I. PRESENTATIONS
No presentations.
II. BUSINESS AGENDA
A. Tourism Promotion Area
Staff is seeking Council approval to move forward with negotiations with the City of SeaTac for the
formation of a Tourism Promotion Area (TPA). This item was originally presented to the Finance & Safety
Committee on June 5, 2012, at which time the Committee requested staff research additional information
and return to Committee.
Staff summarized the information provided in the Committee Agenda Packet, and Committee Chair
Robertson asked attendees if they had any comments. Mike Schabbing, with the Courtyard, spoke in favor
of the TPA, and commented that this is an example of direct competitors coming together for the benefit
and greater good of the an entire group. Scott Ostrander from Cedarbrook Lodge stated that this is a self -
imposed assessment on the hoteliers with no taxpayer funds.
The Committee Members discussed the TPA concept, and inquired about general terms of an interlocal
agreement such as legislative issues, accounting practices, and general liability. Although supportive of the
idea and a full Council discussion, the Committee asked staff to provide the following additional
information when the item comes before the full Council:
• Clear statement of what action the Council is being asked to take
• Timeline which includes phases and next steps, and overall how the TPA will work
• Involvement of other entities and appropriate roles (i.e.: City of Des Moines)
• Additional detail regarding combined authority option (i.e.: who — elected officials or executive
director, how many of each, etc)
• How does this affect the Tourism staff?
The Committee was complimentary of the information that was provided by staff, and commented that
forthcoming items relating to the TPA should continue to be processed via the Finance & Safety
Committee. UNANIMOUS APPROVAL. FORWARD TO MARCH 25 COW FOR DISCUSSION.
59
60
COUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's review
Council review
03/25/13
BG-
6,5
04/01/13
BG
Lil Ordinance
Mtg Date
Bid Award
Mtg Date
[ Public Hearing
Mtg Date
Other
Mtg Date
CATEGORY L Discussion
L
Mtg Date
Mtg
SPONSOR Council Lil Mayor HR 111 DCD LI Finance Fire IT Pe7R Police L Pr
SPONSOR'S This resolution will declare an emergency that authorizes City staff to expedite repair of
SUMMARY the APW/APE Sewer Repair March 2013 Project. On 3/11/13, raw sewage was reported
and i twas discovered that the sewer main had failed near Andover Park West. A temporary
rental pump has been installed to bridge the railroad tracks and the plugged sewer line at
an approximate cost of $40,000 for 4 months. Council is being asked to approve the
resolution declaring an emergency. Final costs will be reported at a later date.
ITEM INFORMATION
ITEM No.
4.C.
61
STAFF SPONSOR: BOB GIBERSON
ORIGINAL AGENDA DAIE: 03/25/13
AGENDA HEM TITLE
Andover
Resolution
Park W/Andover Park E Sewer Repair March 2013
Declaring an Emergency
03/25/13
Motion
Date 04/01/13
Resolution
Mtg Date
Lil Ordinance
Mtg Date
Bid Award
Mtg Date
[ Public Hearing
Mtg Date
Other
Mtg Date
CATEGORY L Discussion
L
Mtg Date
Mtg
SPONSOR Council Lil Mayor HR 111 DCD LI Finance Fire IT Pe7R Police L Pr
SPONSOR'S This resolution will declare an emergency that authorizes City staff to expedite repair of
SUMMARY the APW/APE Sewer Repair March 2013 Project. On 3/11/13, raw sewage was reported
and i twas discovered that the sewer main had failed near Andover Park West. A temporary
rental pump has been installed to bridge the railroad tracks and the plugged sewer line at
an approximate cost of $40,000 for 4 months. Council is being asked to approve the
resolution declaring an emergency. Final costs will be reported at a later date.
REVIEWED BY
COW Mtg.
CA&P Cmte 111 F&S Cmte 111 Transportation Cmte
Cmte Arts Comm. 111 Parks Comm. 1111 Planning Comm.
COMMITTEE CHAIR: JOE DUFFIE
L Utilities
DATE: 03/18/13
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITTEE
Public Works Department
Unanimous 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: 402 SEWER FUND
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
03/25/13
04/01/13
MTG. DATE
ATTACHMENTS
03/25/13
Informational Memorandum dated 03/15/13
Draft Resolution
Minutes from the Utilities Committee meeting of 03/18/13
04/01/13
61
62
TO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Utilities Committee
FROM: Bob, Giberson, Public Works Director-
BY: Mike Cusick, Senior Engineer
DATE: March 15, 2013
SUBJECT: APW /APE Sewer Repair March 2013
Project No. 91340202
Emergency Resolution
ISSUE
Approve Resolution declaring an emergency which authorizes City staff to expedite repair of the
APW /APE (Andover Park W /Andover Park E) Sewer Repair March 2013 Project.
BACKGROUND
On March 11, 2013, City staff received a call from a business owner on Andover Park East reporting
sewage coming up in his parking lot. Staff discovered that the 12 -inch pipe between Andover Park
East and Andover Park West was full of sewage and not flowing. Maintenance staff then tried jetting
the sewer line, and the jet head was only able to go out about 150 feet of the 430 foot sewer line. The
sewer flow rate improved, but the jet head could go no further. When the jet head is unable to access
the pipe, it usually indicates there is a major break in the sewer pipe and has caved in.
On March 12, 2013, staff noted gravel in the downstream manhole and determined that the sewer
pipe had failed and a sink hole had formed near the railroad tracks. A temporary rental pump has
been installed to bridge the railroad tracks and the plugged sewer line.
In February 2011 this section of sewer pipe failed just east of Andover Park West resulting in a major
excavation for repair of the sewer and water lines. In 2012 the City of Tukwila received a Public Works
Trust Fund Loan for the relining of sewer pipes in this portion of the CBD for 2013. The new failure is
about 150 feet east of the failure which occurred in 2011.
ANALYSIS
Approve the Resolution which declares an emergency and authorizes Public Works to immediately
stabilize the damaged sewer system with a construction contract exempt from competitive bidding.
The scope of this sewer stabilization project is to install a rental pump with temporary piping between
the railroad ties so that train traffic is not blocked by sewer piping laying over the train tracks and then
on to a manhole near Andover Park West. This temporary system will allow the City time to hire a
consultant to design a repair project and use normal bidding procedures in hiring a contractor for the
repair. Staff will return to Committee at a later date with a Consultant Agreement for the design work.
RECOMMENDATION
The Council is being asked to approve the Resolution declaring an emergency for the APW /APE
Sewer Repair March 2013 Project and consider this item at the March 25, 2013 Committee of the
Whole meeting and subsequent April 1, 2013 Regular meeting.
Attachment: Draft Resolution
W: \PW Eng \PROJECTS\- SW Projects \PW APE Sewer Repair March 2013 (91340202)\ Info Memo Emergency Resolution APW -APW Repair March 2013.docx
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DRAFT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, DECLARING AN EMERGENCY
IN RESPONSE TO DAMAGES TO PUBLIC PROPERTY DUE
TO A COLLAPSED SANITARY SEWER.
WHEREAS, it has been determined that a sanitary sewer has collapsed in the 1000
block of Andover Park West; and
WHEREAS, the break has resulted in damage to the sanitary sewer and the break
poses a significant risk to existing water utilities; and
WHEREAS, the repairs to the sanitary sewer are required immediately; and
WHEREAS, RCW 39.04.280 provides for emergency declarations and competitive
bidding exemptions; and
WHEREAS, the Mayor of Tukwila declared an emergency on March 8, 2013, in
order to allow City forces to respond with appropriate resources to restore damages
and prevent further impacts to public and private property; and
WHEREAS, the City Council wishes to provide their support and endorsement of
the Mayor in his action to declare an emergency and for the City's efforts to respond to
the emergency;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
The City Council supports the Mayor in his declaration of emergency and
authorizes the execution of contracts or agreements due to damages and the need for
protective actions brought about by a failed sanitary sewer, and hereby authorizes City
forces to respond in the most effective and expedient manner, without regard for the
procedures and formalities that would otherwise govern the assignment of duties,
procurement of materials, and contracting of services. This situation is an emergency
as defined in RCW 39.04.280(3).
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PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of , 2013.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Kathy Hougardy, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Shelley M. Kerslake, City Attorney
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Page 2 of 2
UTILITIES COMMITTEE
Meeting Minutes
March 18, 2013 — 5:00 p.m. — Conference Room 1
City of Tukwila
Utilities Committee
PRESENT
Councilmembers: Joe Duffie, Chair; Allan Ekberg and Verna Seal
Staff: Bob Giberson, Frank Iriarte, Robin Tischmak, Mike Cusick, Greg Villanueva, David Cline, Pat
Brodin, and Gail Labanara
Guests: Chuck Parrish, resident
CALL TO ORDER: The meeting was called to order at 5:00 p.m.
I. PRESENTATIONS
No presentations.
II. BUSINESS AGENDA
A. Resolution Declaring Emergency: Andover Park West /Andover Park East Sewer Repair — March 2013 .
Staff is seeking Council approval of a resolution declaring an emergency and authorizing a contract exempt
from competitive bidding for the immediate stabilization of a damaged sewer system between Andover
Park West (APW) and Andover Park East (APE) near Minkler Boulevard.
This section of sewer pipe has failed two times within the last two years. The current resolution will allow
City staff to provide a temporary stabilization of the sewer pipe so that a long -term repair project can be
designed and constructed through the City's regular bidding process. The cost of the temporary pump rental
and pumping is $40,000 for four months. UNANIMOUS APPROVAL. FORWARD TO MARCH 25
COW FOR DISCUSSION.
B. Commercial Business District (CBD) Sanitary Sewer Rehabilitation — Consultant Agreement
Staff is seeking Council approval of a consultant agreement with RH2 Engineers for design services relating
to the CBD Sanitary Sewer Rehabilitation Project in the amount of $79,977. This project is funded in part
by the obligated 2012 Public Works Trust Fund (PWTF) loan of $750,000. We believe that part of the
PWTF will be able to aid the emergency repair project listed above as it is in the same area. Committee
questioned the scoring of the consultants as there were only two applicants, and staff did not include a
scoring worksheet in the packet. UNANIMOUS APPROVAL. FORWARD TO APRIL 1 CONSENT
AGENDA.
C. NPDES Program: 2013 Surface Water Management Program and 2012 Annual Report
As a requirement of the National Pollutant Discharge and Elimination System (NPDES) Phase II permit,
staff has completed the 2013 update to the Surface Water Management Program (SWMP) as well as the
2012 Surface Water Management Annual Report. Both documents must be submitted to the Department of
Ecology (DOE) by March 31, 2013.
As of August 1, 2013, an updated NPDES Permit Phase II will be in effect. The City's current NPDES
Permit expired February 15, 2012, was extended by DOE for one year (system- wide), and will be replaced
with an updated Permit that will be valid August 1, 2013 through July 31, 2018.
Staff reviewed the new NPDES requirements which go into effect on August 1, 2013. Included in the
requirements is the option to either pay for Regional Monitoring (cost $4k) and Effectiveness Studies (cost
$7k) conducted by DOE or conduct monitoring ourselves. Low Impact Development (another LID) is a
NPDES requirement that includes using pervious surfaces that could be pavers, rain gardens, and porous
asphalt and concrete. Some developers are submitting LIDs with their plans, but nothing will be required
until 2016. INFORMATION ONLY.
67
68
Upcoming Meetings & Events
March /April 2013
25th (Monday)
26th (Tuesday)
27th (Wednesday)
28th (Thursday)
29th (Friday)
30th (Saturday)
➢ Community
Affairs & Park5
➢ Transportation
Crate,
5:15 PM
(CR #1)
Klickitat Local
Improvement
District No. 33
Assessment Roll
Hearing
Begins at 9:00 AM
(Tukwila
Community Center,
Meeting Room B).
Additional
information is
available at
������.tuk��ilac� a.ge>�..
.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
under Tukwila News
and Notes.
Public Open
House on update
for 2015
Comprehensive
Plan Update
4:30 -6:30 PM
(Community Center)
For additional
information contact
Rebecca.Fox@
tukwilawa.gov
City Council/
Executive Staff
Workshop
5:00 -8:00 PM
(Community
Center Social
Hall)
➢ COPCAB,
6:30 PM
(CR #5)
➢ Planning
Commission,
6:30 PM
(Council
Chambers)
Tukwila Int'l.
Action
Trash Pickup
9:00 10:00
',
For location
R -ck
at rra k(cL
Blvd.
Cmte's
Day
AM
"
contact
se1,11erw
Cmte,
Cancelled
➢ City Council
Executive
Session,
6:00 PM
➢ City Council
Committee of
the Whole Mtg.,
7:00 PM
(Council
Chambers)
License your pet now —avoid fines later.
A PET LICENSE AMNESTY PERIOD is now underway, giving pet owners until April 30,
li 2013 to license previously unlicensed pets or renew expired licenses without facing a fine. Take
advantage of this grace period by licensing your pet online, or corning to the City Clerk's
counter at Tukwila City Hall (8:30 AM to 5:00 PM, Monday through Friday).
Call 206- 433 -1800 or visit: http: / /www.tukwilawa.gov /clerk /petlic.html
1st (Monday)
2nd (Tuesday)
3rd (Wednesday)
4th (Thursday)
5th (Friday)
6th (Saturday)
➢ Utilities Crate,
5:00 PM
(CR #1)
➢ Civil Service
➢ Chamber of
Commerce
Gov't. &
Community
Affairs Crate,
12:00 NOON
(Chamber
Office)
➢ Finance &
Safety Crate,
5:30 PM
(CR #3)
D Arts
Commission,
5:30 PM
(Community
Center)
➢ Equity &
Diversity
Commission,
Cancelled
(Rescheduled
to 4/11/13)
Pitch
monthly
Cascade
(14211
Is`
m�
in for Parks!
Join the Parks
Department for a
clean - up at
View Park
37th Avenue S)
9:00 AM
Saturday of each
month
.i ■
).ai
1
-.A '
�� r
Commission,
Cancelled
(Rescheduled to
4/22/13)
➢ City Council
Executive
Session,
6:30 PM
> City Council
Regular Mtg.,
7:00 PM
(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.
> 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.
➢ Civil Service Commission: 1st Mon., 5:00 PM, Conf. Room #3. Contact Kim Gilman at 206 - 431 -2187.
> Community Affairs & Parks Committee: 2nd & 4th Mon., 5:15 PM, Conf. Room #3 Meeting Cancelled.
➢ COPCAB (Community Oriented Policing Citizens Adv. Board): 4th Thurs., 6:30 PM, Conf Rm #5. Chris Partman (206 -431- 2197).
> Equity & Diversity Commission: 1st Thurs., 5:15 PM, Conf Room #3. Contact Joyce Tr•antina at 206 - 433 -1850.
> Finance & Safety Committee: 1st & 3rd Tues., 5:30 PM, Conf. Room #3
> Planning Commission /Board of Architectural Review: 4th Thurs., except 2nd Thursday in Nov. & Dec., 6:30 PM,
Council Chambers at City Hall. Contact Wynetta Bivens at 206 - 431 -3670.
> Transportation Committee: 2nd & 4th Tues., 5:15 PM, Conf. Room #1 (A) City of Tukwila Apprentice Program. (B)
Transportation Committee Goals – 2013. (C) SCATBd Summary and Agenda. (D) The Washington State Rail Plan.
>Tukwila Int'l. Blvd. Action Cmte: 2nd Tues., 7:00 PM, Tukwila Community Center. Contact Chief Villa at 206 - 433 -1815.
> Utilities Committee: 1st & 3rd Mon., 5:00 PM, Conf. Room #
69
Tentative Agenda Schedule
MONTH
MEETING 1-
REGULAR
MEETING 2 -
C.O.W.
MEETING 3 -
REGULAR
MEETING 4 -
C.O.W.
March
4
11
18
25
See agenda packet
cover sheet for this
week's agenda
(March 25, 2013
Committee of the VVhole
Meeting).
April
1
Special Presentation:
8
Special Presentation:
15
Unfinished Business:
22
Introduction of new
employee, Jennifer
Sloan.
Employee
Recognitions.
State of the Municipal
Court.
Appointments/
Teens for Tukwila.
An ordinance
confirming and levying
the assessments for
LID 33.
Proclamations:
Proclamation for
Arbor Day.
Appointments to
Community Policing,
Parks Commission
and Human Services.
Unfinished Business:
Tourism Promotion
Area.
An ordinance
vacating portions of
the existing South
178th Street right - of -
way.
Emergency sanitary
sewer repair - a
resolution declaring
an emergency.
70