HomeMy WebLinkAbout2013-03-25 Committee of the Whole MinutesTukwila City Council Committee of the Whole Meeting
City Hall Council Chambers March 25, 2013 — 7:00 P.M.
MINUTES
COMMITTEE OF THE WHOLE MEETING
EXECUTIVE SESSION
Start: 6:01 p.m.
Council President Hougardy announced the purpose of the Executive Session is to discuss Potential
Property Acquisition – Pursuant to RCW 42.30.110(1)(b).
It will last no more than 60 minutes, and no decisions will be made during the Executive Session.
Attendees: Jim Haggerton, Mayor; David Cline, City Administrator; Shelley Kerslake, City Attorney; Bob
Giberson, Public Works Director; Peggy McCarthy, Finance Director; Mike Villa, Police Chief; Chris
Flores, Acting Fire Chief; Brandon Miles, Senior Planner; Kimberly Matej, Government Relations; Tukwila
City Councilmembers Joe Duffie, Dennis Robertson, Verna Seal, Allan Ekberg, Kathy Hougardy, De'Sean
Quinn, Kate Kruller.
End: 6:57 p.m.
CALL TO ORDER/PLEDGE OF ALLEGIANCE
Council President Hougardy called the Tukwila City Council meeting to order at 7:07 p.m. and led the
audience in the Pledge of Allegiance.
OFFICIALS
Present were Kathy Hougardy, Council President, Councilmembers Joe Duffie, Dennis Robertson,
Allan Ekberg, Verna Seal, De'Sean Quinn, Kate Kruller.
CITY OFFICIALS
Jim Haggerton, Mayor; David Cline, City Administrator; Shelley Kerslake, City Attorney; Mike Villa, Police
Chief; Jack Pace, Community Development Director; Bob Giberson, Public Works Director; Chris Flores,
Acting Fire Chief; Derek Speck, Economic Development Administrator; Evelyn Boykan, Human Services
Manager; Nora Gierloff, Deputy Community Development Director; Brandon Miles, Senior Planner;
Kimberly Matej, Government Relations; Katherine Kertzman, Tourism Program Manager; Chris Partman,
Community- oriented Policing Coordinator; Barbara Saxton, Administrative Support Coordinator.
SPECIAL PRESENTATIONS
a. An update on the Hyde Shuttle. Cindy Zwart, Director, Volunteer Transportation, Senior Shuttles
and Nutrition Transportation.
Evelyn Boykan, Human Services Manager, explained the City has collaborated with Senior Services on
volunteer transportation. The Hyde shuttle service has been successful in other south King County
communities, and began operation in SeaTac and Tukwila in June of 2012.
Cindy Zwart, Director, Senior Services Transportation Program, utilized a PowerPoint presentation to
provide information on Senior Services, which is the largest not - for - profit agency serving seniors in King
County. It was established in 1967 to promote the emotional, social and physical well -being of older
adults. The transportation program has been around since 1975, and is recognized by government
agencies, transportation providers, and human service providers as a cost - effective, reliable alternative to
public transportation. The two components — volunteer transportation and the Hyde Shuttle — utilize
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March 25, 2013 Page 2 of 12
approximately 600 volunteer drivers, 45 paid staff, 35 vans, and a $2 million budget. These services
have a dramatic impact on the lives of seniors and people with disabilities.
Ms. Zwart noted the City of Tukwila has provided funding for the volunteer transportation services
program and Meals on Wheels for many years, and expressed her appreciation for that support.
The Hyde Shuttle is a community -based operation using both paid and volunteer drivers to provide
transportation service to seniors 55 and older and people with disabilities of all ages. A community van
serves all of SeaTac and Tukwila, which is one of the highest - performing routes. The service can be
used for transportation to anywhere within the city limits, such as medical appointments or to the senior
center, grocery store, and hair salon. They also provide service to Highline Medical Center. No long
application process or screenings is required. Language line services are available and the vans are lift -
equipped.
Nutrition transportation services are provided in conjunction with Aging and Disability Services to
transport refugee and immigrant elders to ethnic meal programs.
Metro is a partner through their "community access transportation program," which supports cost - effective
alternatives to Metro's Access program to increase mobility options for seniors, disabled and low- income
populations. Metro provides operating funds as well as in -kind support. Vans are used through a vehicle
lease agreement, and Metro provides maintenance and replaces aging vehicles. Rides are provided at
one -third of the cost of the Access program and saved Metro over $5 million last year.
The Hyde Shuttle has proven to be an important transportation resource that allows people to move more
freely within their communities and access life- sustaining and life- enriching activities.
The Councilmembers expressed appreciation to Ms. Zwart for the presentation and for her support to the
community.
b. Growing Transit Communities partnership. Michael Hubner, Project Manager, Puget Sound
Regional Council.
Jack Pace, Community Development Director, introduced Michael Hubner from Puget Sound Regional
Council (PSRC) to provide an overview of how PSRC is working to grow transit communities.
Michael Hubner, Planner, explained Puget Sound Regional Council administers regional transportation
dollars to fund transportation programs throughout the four - county region (King, Pierce, Snohomish and
Kitsap counties). They also work on transit issues and applied for a $5 million sustainability grant several
years ago with the Federal Partnership for Sustainability, which is a partnership between HUD, the
Department of Transportation and EPA. Mr. Hubner used a PowerPoint presentation to give an overview
of the Growing Transit Communities program.
The grant is for a three -year project focusing on community development specifically around light rail
stations in our region, with a goal toward developing a tool kit that would apply to high- capacity transit
(which includes light rail, commuter rail, and bus rapid transit). The three main goals of the project are:
1. Accommodate growth around transit stations. Cities served by high- capacity transit have
adopted a vision for community development, which involves housing, economic development in jobs
and investing in public amenities. The regional plan known as Vision 2040 calls for accommodating
growth near the core of the metropolitan urban area and throughout many of the cities connected by
high- capacity transit.
2. Focus on housing affordability, both in terms of preserving the affordable stock that currently exists
and adding to affordable stock where needed.
3. "Access to opportunity," which includes analyzing the educational, economic, transit mobility,
environmental health and other characteristics of a community that allows households to flourish and
succeed. Those factors have been mapped throughout the region and are used to address inequities
and make strategic investments in communities throughout the region.
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The region is currently in the midst of $15 billion in transit investment including light rail and bus rapid
transit. The F -line is due to start service connecting Burien and Renton to Tukwila within the next year
and Central Link Light Rail is being extended down to South 200th. The aim of the Growing Transit
Communities project is to leverage that investment to build thriving and equitable communities.
Benefits to the region include:
• Tools and resources that cities, counties and transit agencies need to coordinate the transportation
and land use investments in each area
• Targeting regional investments to better support transit station areas
• Increase regional competitiveness, both economically and for additional federal funds
• Build public support for transit community building
• Enhance the quality of life
Mr. Hubner explained the coalition includes 34 signatories to the Regional Memorandum of Under-
standing (MOU), including various cities; King, Pierce and Snohomish counties; transit agencies and
community -based organizations. An oversight committee guides the work and the recommendations that
will come forth. One tool will be the Regional Transit Communities Compact, which will be used to affirm
support for an on- going, coordinated regional effort around transit communities.
A task force is currently reviewing the existing conditions, goals and visions for all the transit communities
in the southern portion of the region (from south Seattle down to Tacoma). A draft report from this project
will come out in April and be available for public comment, and will then be finalized this summer. The
report will include:
• 74 transit community profiles
• 24 strategy areas with actions for all levels of government
• 8 implementation approaches
Once the report is released and approved by the oversight committee, PSRC will work with City staff and
transit agencies to identify what may be needed on their work programs in the next several years to move
forward the recommendations from the oversight committee. They will be doing outreach to solicit an
endorsement for the Compact in order to provide a united front in going forward for further federal funds
for transportation improvements and for ensuring coordinated efforts around community development in
the region.
Local jurisdictions have a key role to play through:
• Comprehensive Plan updates
• Development regulations and incentives
• Local capital facilities investments
Council discussion included recognition of the uncertainty of funding for transit, ways people will be able
to comment on the public draft; the importance of good "connections" beyond mobility that is available up
and down the tracks, such as feeder buses to broader communities beyond the station areas;
consideration towards extending light rail into the Southcenter area; and the impact overflow parking has
had on neighborhoods near the station on Tukwila International Boulevard.
Mr. Hubner will make information available to staff for the Council including: the presentation materials
shown at tonight's meeting; opportunity mapping on the four - county region, which is based on census
tracts throughout the region; and a list of the oversight committee members.
The Council expressed appreciation to Mr. Hubner for the presentation.
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CITIZEN COMMENTS
Chuck Hawes, Owner of De /Mar Company, 515 Strander Boulevard, stated his business has been in
Tukwila for 34 years. Mr. Hawes indicated the building owner received a letter from Metro regarding
expansion of the bus stop close to the driveway directly in front of their entrance. He feels a stop at this
busy intersection (Andover Park East and Strander Boulevard) would impact traffic and cause even more
confusion than currently exists. He stated people often walk into traffic looking around the buses, and
they already have bus riders wandering in and out of their parking lot on a daily basis, and he has
witnessed people acting in a disrespectful manner on their property. His business is a retail
establishment and he does not feel his customers should have to deal with these types of issues at their
entrance. He feels a location one block west is more open. The building owner has the same concerns
and asked Mr. Hawes to speak on his behalf.
Bob Giberson, Public Works Director, explained this is most likely a stop for the RapidRide F -line. He
indicated he would be happy to talk directly with Mr. Hawes about the situation.
Kathy Mars, 4024 So. 158th Street, #B, lives in the Chalet South condominiums. She and a group of
neighbors met with Council President Hougardy at the Council Chat on.March 9 and discussed crime on
their block. Ms. Mars asked other residents of 158th Street who were in attendance at tonight's meeting
to stand. Ms. Mars feels a large part of the crime on their block comes from the Grande Terrace
Apartments. There was an early morning shooting in February, during which the suspect crashed
through the fence and was arrested on their property. Ms. Mars referenced a landlord- tenant statute that
requires landlords to do background checks on applicants and asked how that requirement can be
enforced. She also noted that applicants with a criminal background are not eligible for Section 8
housing. Ms. Mars asked the Council for help addressing the safety concerns on their block.
Ronnie Steward, 4042 So. 158th Lane, stated there was gunfire in the middle of the street last summer
when his sister was visiting. There was a break -in two houses down from his home. Several stolen cars
have been left in the community. The number of incidents on this block seems to indicate the Grande
Terrace Apartments is harboring a criminal element, which has also spilled over to the park where
incidents are especially common during the summer. He noted they have seen an increased police
presence at the park on Saturdays and Sundays. Mr. Steward stated several motels near Foster High
School have people living in them on a long -term basis.
Teresa Ritzhaupt, 4016 -A S. 158th St. (Chalet South condominiums), stated she agrees with the previous
comments. When she walks her two large dogs on any given weekend morning, she is physically
harassed on the street by some Grande Terrace tenants and other people closer to the park- and -ride lot
for the airport shuttle. She has brought baggies of contraband that she found in the park to the Police
Department; there was a drug deal going on in the parking lot last Saturday. She has witnessed a
stabbing at the 7 -11 off Tukwila International Boulevard and several fights on the street. She does not
feel safe going out.
Joan Flickinger, 4008 S. 158th St., #H (Chalet South condominiums), stated she is concerned with the
drug dealers who park in front of the apartments next door. She has observed meth addicts in the
parking lot where children are playing, drug paraphernalia in her parking lot, and people doing over 50
miles per hour down the road. The drug activity and safety of her two daughters is her biggest concern.
Her husband's car has been stolen from their parking lot twice during the time he has lived there. She
has called 9 -1 -1 before, but has concerns about her information being associated with a police report,
and noted that usually the cause of her call has left before police arrive.
Joe Savoie, 4024 S. 158th St., #D (Chalet South condominiums), stated there are 78 units in their
complex. He has made multiple calls to the police — probably 50 times last year —and the calls have
resulted in multiple arrests. Police and Fire are there several times a week, including 4:30 yesterday
morning. He saw a drug deal happening last night. He recently called about someone smoking crack on
158th Street and the quick response from the police resulted in an arrest. He stated that the people at
their complex and the condos across the street are good people. He feels the fence and trees in front of
their complex are an inviting location for the criminal element and unlawful acts that originate from the
front of the Grande Terrace, including what appear to be gang members, drug paraphernalia, beer cans,
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March 25, 2013 Page 5 of 12
fights, gun shots, and prostitution. The situation seems to be getting worse and he would appreciate a
bigger police presence on 158th and quick response to their calls.
Robin Totten, 4055 So. 159th Lane, said she and her husband have been residents and owners in the
Holly Crest Townhomes for over 22 years. They enjoy the diversity in the neighborhood and it has been
a great place to live until recently. In addition to the shootings, burglaries, drugs and gangs mentioned by
others, she feels a lack of attention to the neighborhood by the City has contributed to the decline. She
noted that if you walk east out of the driveway onto 158th Avenue South and walk approximately 150 feet
to 42nd Avenue South, the street there has not been repaved or repaired in over 22 years. There are no
shoulders, sidewalks or curbs and no safe place for children to walk to the bus. Mudholes and potholes
continue to increase in size and number. She advised that the area around 158th and 42nd is starting to
look like a slum. Ms. Totten referenced a house on that corner that has been empty and abandoned for
over 22 years. There is siding on one side and part of the front, the porch is ready to fall off, the grass
and bushes get high in the summer, and the detached garage is unsecured and often used as a place for
people to spend the night. Complaints have been lodged with Code Enforcement about this corner,
which includes two other houses that are overgrown, littered with construction debris, garbage, yard
waste and rusted out vans and vehicles, and there has been an increase in rats and vermin in the
neighborhood. These conditions attract the wrong type of people to the area. She and her neighbors are
doing their part to make the neighborhood a better place and are asking the City to contribute by: (1)
creating ordinances needed to keep the neighborhood clean and safe, (2) helping Code Enforcement to
run more efficiently, (3) repairing roads and potholes, and (4) eliminating the run - around they get when
placing calls to 9 -1 -1.
Sheila Willard, 4008 So. 158th St. (Chalet South condominiums), stated she and her neighbors work hard
for what they have, but the neighborhood has become a scary place. The police reports will show the
number of police responses to the Grande Terrace Apartments. She stated that she hoped coming here
this evening is not a waste of their time.
Ron Ryyth, 4022 So. 158th St. #D (Chalet South condominiums), stated there were a number of men
drinking in front of their building tonight while children were out playing. He previously lived in Norwalk,
California, where the police parked a big, marked trailer with a one -way mirror right in front of a house
where gang members were suspected to be living. It was an effective deterrent.
Pam Seifert, 3810 So. 158th St. (Laurel Estates), stated that people climb over the fence into her
complex, where they break into homes, steal cars and conduct drug deals. There was a shooting there a
couple months ago. She noted that many of her neighbors are afraid to call 9 -1 -1. She has written
letters, e- mailed and called Code Enforcement about the garbage but seen no improvement. She drives
home off of Tukwila International Boulevard rather than from 158th or 42nd as she does not feel safe
there.
Jody Savoie, 4042 So. 158th St. (Chalet South condominiums), stated she heard 5 pops outside her
home one morning. Police found 4 casings in front of her house. The last time her parents came to visit,
her father was threatened while walking the dog.
Thomas Flaherty, 15822 40th Lane So. (Holly Crest Townhomes), noted that the City has been replacing
street lights in nearby areas and the new lights produce an enormous, bright Tight. There are not very
many of the new lights on 158th.
Kuldeep Natt stated he has been the owner of the Grande Terrace Apartments (15830 39th Ave. So.) for
almost 19 years. He stated he attended a meeting three weeks ago and explained the efforts he is going
to make. He mentioned a dispute that began in West Seattle and one of the people involved was chased
to his complex in Tukwila where a shooting took place. He asked how he —as an owner /manager —can
prevent these types of actions. He noted that 158th is a boundary shared with another apartment
complex and a condominium, with people from all 3 complexes meeting at one place. He stated that he
has called 9 -1 -1, but if there is not a specific crime or incident of destruction taking place, they will not
respond.
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Council President Hougardy thanked the residents for coming to make comments on the record. She
stated that staff is aware of and working to address the issues, and hearing from the residents is an
important part of the process. She noted that safety of the City's residents has been identified as one of
the Council's highest priorities.
Councilmember Duffie assured the residents that their comments have been heard and encouraged them
to continue to call 9 -1 -1.
Councilmember Kruller stated that she drove through the neighborhood one night recently and witnessed
the frightening situation that has been described this evening. She noted that the problems seem more
intense than that described during last summer's Night Out event.
Police Chief Villa stated that Chris Partman, Community Oriented Policing Coordinator, is in attendance
tonight to meet any interested parties outside in the lobby to collect contact information. He stated the
Police Department has been watching the numbers and have put together a team to problem solve the
situation.
SPECIAL ISSUES
a. Update on Tukwila International Boulevard revitalization efforts.
Shelley Kerslake, City Attorney, utilized a PowerPoint presentation to provide an update on the City's
Tukwila International Boulevard revitalization strategy. This project was started through the community
renewal process. In this process, state law allows for the creation of urban renewal areas within cities to
revive areas struggling with crime and blight. The purpose of this legislation is to eliminate social
liabilities, increase sound growth, reduce crime and improve livability.
Redevelopment can occur through the acquisition of blighted areas or buildings. Buildings can be
demolished and removed to make improvements and land may be made available for development or
redevelopment by private enterprise or public bodies. The law allows the City Council and the City the
greatest amount of flexibility when trying to revitalize a particular neighborhood.
If a property cannot be acquired through negotiation, the property may be condemned for fair market
value. The area between 140th and 146th on Tukwila International. Boulevard was designated a
community renewal area in 2000. She noted that any properties lying within the white line on the map
shown may be acquired for the purposes of revitalization of the neighborhood. This was the process
through which the City acquired much of the land for Tukwila Village.
Last year the Council allocated funds to increase holdings in the community renewal area. Through the
City's recent Strategic Planning process, improvement of Tukwila International Boulevard was identified
as the highest priority for the community. Staff started developing sites to acquire, and analysis by Fire,
Police, Code Enforcement and Economic Development departments was provided to determine which
properties would provide the biggest impact to the City.
Mike Villa, Police Chief, explained the City experiences a lot of crime on Tukwila International Boulevard,
and 5 properties in particular (Great Bear Motel, Boulevard Motel, Spruce Motel, Jet Inn and Knights Inn)
have a large impact as it relates to:
• attracting crime,
• creating an unsafe environment, and
• consuming a large amount of police resources.
The Great Bear Motel, Boulevard Motel and Spruce Motel, all located at the 14400 block of Tukwila
International Boulevard, resulted in 754 case reports in the last 5 years. In a recent 12 -month period,
those three properties resulted in 622 calls for service. Based on a total of 103 rooms, that equals 6 calls
for service per room, which is double any other hotel in the City.
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March 25, 2013 Page 7 of 12
Tukwila's "Safety in Overnight Lodging" program stipulates that less than .5 calls for service per room is
considered a "low" crime hotel, and between .5 and 2 calls for service per room is rated as a "moderate"
to "high" crime hotel.
The nearby Knights Inn ranks as #8 in total cases in the urban renewal area, with 103 calls for service
during that same 12 -month period. With 70 rooms, that equates to 1.47 calls for service per room.
The Jet Inn had 91 calls for service. With 32 rooms that equates to 2.84 calls for service per room, which
is the fourth highest number for hotels in the City.
These numbers are for calls for service on the properties themselves. In 2012 there were 101 robberies
in Tukwila, and 47 of those were in the Tukwila International Boulevard corridor. There were 99
aggravated (felony) assaults, with 51 in that corridor.
In addition to attracting crime, these properties create an unsafe environment. Chief Villa identified
several cases directly related to these properties, to include incidents of a teenage runaway being raped
and forced into prostitution, drug related shootings, an officer - involved shooting and highway closure due
to drug activity, and a man shot dead in the parking lot of a Tukwila hotel.
These properties (Great Bear Motel, Boulevard Motel, Spruce Motel, Jet Inn and Knights Inn) are high
consumers of police, EMS and criminal justice resources. The 5 properties all fall within the City's
definition of a chronic nuisance property, part of which is "7 nuisance activities within a 12 -month period."
Calls for service during a 12 -month period included:
- 1 murder
- 35 assaults (including a stabbing, shots fired, and a drive -by shooting)
- 31 drug related
- 12 fights
- 4 rapes
- 5 robberies
- 2 unlawful imprisonment cases
- 6 possession of stolen vehicles
Chief Villa stated that more police resources could be deployed to areas such as the Grande Terrace
Apartments if they were not consumed by these properties on Tukwila International Boulevard.
Ms. Kerslake explained the process involved identifying the top 5 calls for service. Those uses that had
high calls for services such as shoplifting at grocery stores were eliminated and staff focused on those
that had a high impact on the neighborhood and resources of the City. Development potential was also
analyzed. She explained that larger areas tend to have more development potential. Two properties
adjacent to three of the hotels are a smoke shop and a pawn shop. All five of those properties would
create developable land from the corner to the current Tukwila Village property.
The acquisition process requires input from the Council on site selection. The following 7 properties were
identified for potential acquisition:
- Great Bear Motel
- Boulevard Motel
- Spruce Motel
- Knights Inn
- Jet Inn
- smoke shop
- pawn shop
Next steps would include:
• Notice must be sent to the impacted property owners.
• An ordinance authorizing condemnation would be brought to Council on April 22.
• Appraisals of property would be done.
• Continued discussion with Council (in May) based on results of the appraisals.
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March 25, 2013 Page 8 of 12
• Negotiation with property owners. If needed, a formal condemnation action would be filed in Superior
Court. The City could then move for immediate possession and use of the property. If no agreement
can be reached with the property owners through that process, the court would then be asked to decide
on the value of the property.
Councilmember discussion included consensus on pursuing acquisition of the 7 recommended
properties. Ms. Kerslake stated an ordinance can be brought to the April 22nd Council meeting regarding
the 7 specified properties.
Sharon Mann, 4452 So. 160th St., commended Council on their decision to take action. She feels this
will send a message to other properties on Tukwila International Boulevard.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE APRIL 22, 2013 COUNCIL
MEETING.
b. Tourism Promotion Area.
Derek Speck, Economic Development Administrator, explained the Department of Community
Development is providing additional resources to work on the Tourism Promotion Area project, and
introduced Brandon Miles.
Brandon Miles, Senior Planner, stated their goal tonight is to provide Council with an overview of Tourism
Promotion Areas in Washington and how they work, discuss the next steps should Council be interested
in forming a Tourism Promotion Area (TPA), and request a motion at next week's Council meeting in
support of administration's efforts to form a TPA with our neighboring cities.
Mr. Miles noted the local hoteliers have requested formation of a Tourism Promotion Area. A TPA allows
for a fee of up to $2.00 per room per night to be assessed on hotel /motel rooms (it is only allowed on
hotels /motels of 40 units or more). State law requires the support of 60% of the TPA hotel ratepayers
within the geographic area. Hoteliers have also asked that a Public Development Authority (PDA) be
used to administer the funds, and are asking to have autonomy and oversight. They would also like to
have staff of Seattle Southside Visitor Services (SSVS) and lodging tax funds be redirected towards the
PDA.
Tourism Promotion Areas assess a fee —not a tax - -which is separate from the lodging tax. The funds
must be used to promote tourism within that geographic area. Existing TPAs in Washington use funds for
events such as festivals and community events, hosting sporting events, and supporting tourism
agencies. There are currently 10 TPAs in Washington, and 2 more are under consideration. He noted
that the TPAs in Snohomish and Pierce counties include the entire county and all cities.
Snohomish County
Vancouver -Clark County
City of Wenatchee
City of Union Gap
Spokane County
City of Selah
Tri- Cities
Thurston County (proposed)
Pierce County
City of Yakima
Walla Walla
Kitsap County (proposed)
There are currently no Tourism Promotion Areas in King County. State law precluded the formation of a
TPA in King County up until a few years ago when the state law was changed. The law now requires a
minimum of two municipalities to form a TPA in King County, and they must designate a legislative
authority to provide oversight of the funds to ensure they are used for the stated purpose of the TPA. In
all of the existing Washington TPAs researched, elected officials serve as that legislative authority, which
includes enactment of a budget process. The legislative authority would accept the petition from the TPA
hotel ratepayers and hold a public hearing. The petition must include 60% of the total ratepayers within
the combined city limits for Tukwila and whichever other city(ies) would be included in order for the
petition to move forward.
One question related to this process is to determine the level of involvement wanted by the Tukwila City
Council. Three options include:
1. Work with the City of SeaTac and designate legislative authority from Tukwila to the SeaTac City
Council for the entire geographic area of the TPA.
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2. SeaTac City Council would transfer legislative authority to the Tukwila City Council.
3. A hybrid approach in which a joint legislative authority is formed through an Interlocal Agreement.
Two options for the legislative authority relating to administration of the funds include:
1. Retain the funds itself and administer it as a program, such as a City department.
2. Contract with a third party. Almost all TPAs in Washington (except Union Gap and Snohomish
County) contract with a third party. That third party is usually a 501(c)(6). Hoteliers in Tukwila and
SeaTac have expressed interest in having that third party be a Public Development Authority (PDA).
As example of a PDA is the one that oversees operation of the Pike Place Market. It is a quasi -
governmental organization created by a government entity to operate a specific purpose.
Key questions for Tukwila's City Council in going forward will include:
- Role of the Council in the legislative authority
- Role of the City or Council in the tourism organization
- Form of the tourism organization
- Rate structure
- Termination provisions
- Role of the City of Tukwila's tourism staff
- Dedication of the current lodging tax
Guidance is requested tonight on the first two items relating to Council's interest and preference
regarding the legislative authority. If there is interest and support, staff would work with hoteliers, the City
of SeaTac and any other interested cities in forming an Interlocal Agreement, which would be brought
back to Council. Outreach would also be conducted with hoteliers to ensure they are interested and
understand the TPA.
Mr. Miles explained City administration recently met with the City of SeaTac. SeaTac has offered to serve
as the legislative authority and to sponsor the Public Development Authority. This is a logical function in
that the majority of the involved hotel rooms (approximately 70 %) are located in the City of SeaTac. The
City of Des Moines may also be interested in joining the TPA.
Councilmember Robertson noted that the report presented at the Finance and Safety Committee's
meeting on March 5, 2013 was very thorough, and the options are summarized on pages 21 and 22 of
tonight's agenda packet. The committee members were unanimous in recommending approval in
support of pursuing the TPA. They did have concerns that the option chosen best meets the needs of
Tukwila's hoteliers and for the staff members who currently work in the City's tourism department.
Council President Hougardy called for citizen comments on this issue. She noted a letter addressed to
the Mayor and City Councilmembers was received from Scott Ostrander, General Manager of Cedarbrook
Lodge.
Vicky Molzer, General Manager of Holiday Inn Express and Suites, 19621 International Boulevard,
SeaTac, attended the March 5, 2013 Finance and Safety Committee meeting. As a voting member of the
SeaTac Hotel /Motel Advisory Committee and the TPA ratepayer steering committee, she supports the
option of Tukwila transferring legislative authority to the City SeaTac. SeaTac heavily depends on the
hospitality industry and it is a high priority for the city. She feels SeaTac will use the funds generated as
the TPA ratepayers intend, to create a Seattle Southside Tourism Development Authority and to manage
the funds with the purpose of increasing overnight hotel stays and visitor spending. Under the TPA,
SeaTac hotels would generate an estimated $1.8 million, and Tukwila hotels approximately $600,000.
This option can be implemented in a shorter time frame, and would require less of Tukwila's time and
resources.
Caroline Curtis of Hotel Concepts and BMI Hospitality Management, which manages the Hampton Inn
and Suites, 18850 28th Ave. So., SeaTac, stated she is a voting member of the SeaTac Hotel /Motel
Advisory Committee and the TPA ratepayer steering committee. She attended the March 5, 2013
Finance and Safety Committee meeting in support of the Seattle Southside TPA and PDA. Ms. Curtis
referenced the follow -up letter from staff dated March 18 (page 9 of the agenda packet) regarding next
Tukwila City Council Committee of the Whole Minutes
March 25, 2013 Page 10 of 12
steps, which does not address the question of creating a PDA to administer the TPA funds. She asked
that Council consider the terms and conditions under which the ratepayers will petition to create a TPA
before deciding upon an organizational relationship option. The ratepayers are asking that TPA funds be
transferred to a newly- created PDA as was done with 4Culture and the County lodging taxes for cultural
tourism and promotion. The ratepayers do not desire to contract with the legislative authority to use their
self- imposed funds or compete with other organizations except at the discretion of the PDA board of
ratepayers. The PDA would be part of the sponsoring legislative authority's budget process, and would
only allocate and transfer already designated TPA funds identified in the enabling ordinance and
interlocal agreement for the TPA and the PDA.
Maureen Huffman, General Manager of the Embassy Suites in Tukwila, 15920 West Valley Highway,
stated she is a tax advisory board member and member of the steering committee for a TPA. She
expressed appreciation for the support received from hoteliers, the Finance and Safety Committee and
staff regarding the formation of a TPA. She supports a structure that involves replacing the existing
interlocal agreement with a new interlocal agreement among the cities of Tukwila, SeaTac, Kent and Des
Moines, redirecting the current lodging tax revenues, forming a TPA and a PDA to receive these two
revenue sources and to provide tourism related services currently provided by Seattle Southside Visitor
Services. She referenced pages 21 and 22 of the agenda packet, which show three possible
organizational relationships for the TPA. Ms. Huffman is in support of options 1 and 2, where one City
Council serves as the legislative authority. She specifically recommended the City of SeaTac be the
legislative authority and also the sponsor for the Seattle Southside PDA. Ms. Huffman noted SeaTac
historically has contributed up to 68% of the total SSVS budget and comprises approximately 71 % of the
rooms projected to be within the TPA (an estimated $2 million annually). Tukwila's estimated generation
is $500,000 in funds annually.
Frank Welton, General Manager of the Doubletree Hotel and the Hilton Hotel and Conference Center in
SeaTac, explained that the legislature was lobbied in the 1990s to redirect lodging tax funds back to the
communities to support the promotion of tourism in our local communities. He was a founding member of
the Lodging Tax Advisory Committee in Tukwila, which works to find ways to continue to grow the vitality
of the industry. Those efforts resulted in the creation of Seattle Southside and they have seen the
positive effects in this area from promoting tourism. Mr. Welton explained the industry does not
undertake a new fee assessment lightly, but they have seen what other communities have done with
those funds. They can be used to create jobs and revenue. He expressed some concern with
government's involvement in repurposing and redirecting lodging tax or TPA dollars to other sources.
Hoteliers are taking a risk to assess these fees and need autonomy for directing where these funds go.
He supports the single legislative authority with the City of SeaTac, and redirecting and repurposing all
money from lodging taxes to the PDA. He stated the hoteliers want the governments to be a partner in
this effort and asked for support of the proposed structure.
Mike Schabbing, General Manager, Courtyard by Marriott, 400 Andover Park West, clarified the motels
discussed by Police Chief Villa earlier this evening do not have enough rooms to be part of the proposed
TPA. The TPA is an important private and public partnership that will keep the area competitive against
the hotels in Seattle, Bellevue, Spokane and Pierce County. He is part of the steering committee for the
hotels in Tukwila and they see the value this concept can bring to the area. The hotels are taking a risk in
self- assessing themselves. For this to be a successful TPA partnership, the hotels in both Tukwila and
SeaTac are proposing and expecting key components. He supports the legislative authority be solely
with the City of SeaTac. SeaTac has the largest conglomeration of hotel rooms and the city has initiated
a letter of agreement with Pacifica Law Group to begin working with ratepayers and staff to draft the
required documents. It is important to the hoteliers that this new self- assessment is not to supplant or
replace current lodging tax dollars, which is a funding mechanism to promote tourism in its current state.
Another key point of the TPA self- assessment funds is to have it managed and implemented by a PDA.
This will minimize risk to the cities involved and provide autonomy for the ratepayers.
While recognizing the need for due diligence, Mr. Schabbing noted that a reasonable and acceptable time
frame is needed as well. Seattle has proposed a toll for an additional 1,200 to 1,500 room nights to be
built, which is equivalent to 5 hotels the size of the largest hotel in Tukwila. This will take away more of
Tukwila's market share and reduce occupancy levels here. Boeing's recent announcement to move flight
simulators out of Renton to Florida by the end of the year will create an immediate hole for the area's
market share. This was a training related facility where guests would stay in the area for weeks at a time
Tukwila City Council Committee of the Whole Minutes
March 25, 2013 Page 11 of 12
and Boeing's decision will have a financial impact on hotels, restaurants and retail. In a letter sent to the
Tukwila City Council on March 29th of last year, 9 hotels in Tukwila expressed their intention of forming a
TPA and PDA. The hoteliers will bring a petition forward to the legislative authority once the interlocal
agreement, ordinance and PDA charter and bylaws have been drafted for approval. They look forward to
working with the cities and staff to become an effective, efficient and successful TPA and PDA.
Carol Kolson, 130 Andover Park East, spoke on behalf of Scott Ostrander, a fellow Chamber member
and General Manager of Cedarbrook Lodge, in support of formation of a TPA with an interlocal
agreement with the cities of Des Moines, SeaTac and Tukwila.
At the request of Councilmember Duffie, Katherine Kertzman, Program Manager, Seattle Southside
Visitor Services, 3100 S. 176th, in SeaTac, expressed her support, as well as that of her fellow staff
members, for the TPA managed as a PDA. This organizational structure also provides an opportunity for
the SSVS staff to maintain their current employment benefits.
Councilmember Robertson asked Mayor Haggerton for his opinion on delegating SeaTac as the
legislative authority representing Tukwila's hoteliers.
Mayor Haggerton noted the majority of hotel rooms are in the City of SeaTac, and that structure would
also relieve some of the pressure from the Tukwila City Council as they work through a number of other
issues before the City. The PDA concept would allow SSVS employees to remain under the State's
retirement system.
Council discussion included recognition of the commitment to the process by the hoteliers, the time and
effort required to meet the Council's fiduciary responsibility and understanding of the situation, the need
for continuing conversations with the hoteliers, the importance of retaining control of tourism money
locally versus through the State or County, concern with Tukwila giving away legislative authority,
potential levels of risk associated with PDAs, and the importance of referencing Tukwila's termination
rights in an interlocal agreement.
9:44 p.m. Mayor Haggerton left the Council Chambers.
Council expressed support for participating in a TPA and directed staff to begin working with stakeholders
on the formation process.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING.
c. A resolution declaring an emergency due to a sanitary sewer line repair on Andover Park
West.
Councilmember Duffie indicated this item was discussed at the Utilities Committee meeting on March 18,
2013. The committee members were unanimous in recommending approval.
Bob Giberson, Public Works Director, referenced the informational memo in the agenda packet regarding
a sewer pipe break. A temporary bypass and pump have been put in place. Next steps will include
bringing a consultant on board through the normal process, and design costs will be brought back to
Council.
Mr. Giberson explained there was a similar situation one year ago in which that sinkhole failure was 15
feet deep in the right -of -way, which required a traffic detour and bypassing the sewer. The current event
is along a fence line south of a building, and the fence fell into the sinkhole. He stated $40,000 was a
reasonable estimate for the current bypass and pumping. Costs for a permanent repair are unknown until
it is determined whether the entire 430 feet of sewer from Andover Park West to Andover Park East
needs to be replaced or just the middle third. If it is only the middle third, the cost is estimated at
$100,000. Replacing the entire stretch could cost $500,000 (including repair of the fence line and parking
lot area of 4 buildings, and work with the railroad).
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING.
Tukwila City Council Committee of the Whole Minutes
March 25, 2013 Page 12 of 12
REPORTS
a. Mayor
There was no report.
b. City Council
Council President Hougardy stated a play entitled "In the Tuk" about the City of Tukwila is being
performed tonight at 7:00 p.m. and also on Tuesday, Wednesday and Thursday at 1:00 p.m. (Foster
Performing Arts Center). Everyone is invited to attend.
Councilmember Quinn participated in the Strike Out Against Hunger event on March 23, 2013.
Councilmember Kruller participated in the Strike Out Against Hunger event on March 23, 2013.
c. Staff
There was no report.
d. City Attorney
The City Attorney's presence is not required at Committee of the Whole meetings.
e. Intergovernmental
Kimberly Matej, Government Relations, reminded the Council of a Joint Meeting with executive staff on
Thursday at the community center from 5:00 to 8:00 p.m.
ADJOURNMENT
9:52 p.m. COUNCIL PRESIDENT HOUGARDY DECLARED THE COMMITTEE OF THE WHOLE
MEETING ADJOURNED.
Kathy Hou • a • y, ou 111Presided
Barbara Saxton, Administrative Support Coordinator
APPROVED AND SIGNED BY THE COUNCIL PRESIDENT: 4/10/13
AVAILABLE ON CITY WEBSITE: 4/11/13