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HomeMy WebLinkAboutCOW 2003-02-24 COMPLETE AGENDA PACKETFebruary 24, 2003; 7 p.m. 1. y Tukwila City Council Agenda r 11 Steven M. Mullet, Mayor John McFarland, City Administrator Pam Carter, Council President COMMITTEE OF THE WHOLE CALL TO ORDER/PLEDGE OF ALLEGIANCE 2. SPECIAL a. Update on King County Library: Bill Ptacek. PRESENTATIONS b. Summary of Association of Washington Cities legislative conference. 3. CITIZEN COMMENTS/ At this time, you are invited to comment on items that are not induded on this agenda. If you wish to comment on an item listed on this agenda, please save your comments until the issue is presented for discussion. A proposed ordinance modifying and renewing a temporary moratorium on acceptance of applications for certain land divisions and land use decisions within the area designated for transit- oriented development. 5. SPECIAL ISSUES A resolution regarding the City's Deferred Compensation Plan. Please bring your plan documents distributed separately. Q 6. REPORTS a. Mayor b. City Council c. Staff d. City Attorney e. Intergovernmental CORRESPONDENCE 4. PUBLIC HEARINGS 7. MISCELLANEOUS 8. EXECUTIVE SESSION 9. ADJOURNMENT Potential litigation (30 minutes). PURSUANT TO RCW 42.30.110(1)(1) Councilmembers: Joe Duffle Dave Fenton Jim Haggerton Joan Hernandez Pamela Linder Richard Simpson Tukwila City Hall; Council Chambers This notice is available in alternate formats for individuals with disabilities upon advance request. Reasonable accommodations at public hearings are available with advance notice. Tukwila City Hall is wheelchair accessible. Please call the City Clerk's office 433- 1800/TDD 248 -2933 if you require assistance. Agenda is also available at City of Tukwila's website: http: /www.ci.tukwila.wa.us Please be advised that all Tukwila Council Meetings are audio taped. Pg.3 Pg.33 Meeting Date Original Sponsor: Timeline: Sponsor's Summary: COUNCIL AGENDA SYNOPSIS Meeting Date 1 February 24, 2003 1 Lir/ 1 N/A N/A Prepared/61N I Mayor's review 1 Council review o• Initials- Recommendations: Sponsor: Hold a public hearing to obtain public comment on the proposed ordinance. Committee: Recommend for public hearing at February 24 COW meeting. Administration: I Cost Impact (if known): I Fund Source (if known): ITEM No. ITEM INFORMATION CAS Number: REF: 02-112 0 3 0 a a) 1 Original Agenda Date 10.28.02 f \o .9. 9.003 Agenda Item Title: Public hearing on proposed ordinance modifying and renewing a temporary moratorium on the acceptance of applications for certain land divisions and land use decisions within the area designated for transit oriented development. Council. Admin.xx Public Hearing on February 24, 2003. Existing moratorium expires March 16, 2003. Council is required to hold a public hearing on the proposed ordinance prior to adoption. RECORD OF COUNCIL ACTION Meeting Date 1 Action 9.16.02 Council adopted Ordinance No. 1996, Establishing a temporary moratorium on the acceptance of applications for certain land divisions and land use decisions within the area designated for transit oriented development. 10.28.02 Council held a public hearing on adopted Ordinance No. 1996. No action was taken, allowing the moratorium to continue uninterrupted until it expires in March, 2003. APPENDICES Attachments Memo to City Councilmembers RE: Public hearing on a proposed ordinance, establishing a temporary moratorium on land divisions and certain land use decisions in the Longacres TOD *Manning area. Proposed ordinance renewing six -month moratorium. Ordinance No. 1996 Copy of Memo to CAP RE: Six -month renewal of Ordinance No. 1996, and proposed modifications. Copy of Public Hearing Notice Copy of letter dated Feb. 12, 2003 sent to affected property owners and businesses in the TOD nlannine area. Minutes of CAP meeting, February 11, 2003. City of Tukwila Department of Community Development Steve Lancaster, Director TO: City of Tukwila Co ci etrlbe" From: Steve Lancaster w Date: February 19, 200 Subject: Public hearing on proposed ordinance, establishing a temporary moratorium on land divisions and certain land use decisions in the Longacres TOD planning area. Backeround On September 2002, Council adopted Ordinance No. 1996, establishing a six-month moratorium on acceptance of applications for certain land divisions, and development activities and land uses within the area designated for transit- oriented development (TOD) around the temporary commuter rail/Amtrak station at Longacres (see Figure 1). This Ordinance expires March 16, 2003. Planning for the TOD area will begin in March, and there is still a need for keeping a moratorium in place until a land use /transportation framework is adopted. A new ordinance is proposed allowing more interim use of properties during this planning period, while maintaining a moratorium on activities and uses that would have significant long -term impacts on the ability to successfully develop a TOD. CAP authorized staff to forward the proposed ordinance to Council for a public hearing at their COW meeting on February 24, 2003. Notice for the public hearing on the moratorium was provided. In addition, individual letters were sent to affected property owners and businesses notifying them of the scheduled hearing. Attached is a copy of the proposed ordinance. i ]ndate on the TOD Plan Steven M. Mullet, Mayor In the fall of 2002, the City received a $1.5 million federal grant to prepare a TOD master plan for the Longacres area, identifying land use, urban design and transportation/circulation objectives. These grant funds will also be used to complete the Tukwila urban center (TUC) plan and incorporate the TOD plan in the overall plans for the TUC. Since passage of the moratorium: Contracts /scope of work are being prepared by Freedman Tung Bottomley for land use /design services on the TOD/TUC project, and with ECONorthwest for financial feasibility and analysis services. These contracts will go before Council for approval in February/March 2003. These will be funded by the $1.5 million federal grant for TOD planning. A series of workshops and stakeholder meetings will soon follow, including Boeing, Metro, Sound Transit, WSDOT, and local property owners and businesses. The consultant team, based on workshop results, will prepare a range of alternative land use and capital improvement scenarios for the TOD area. These alternatives will be folded into the overall Tukwila Urban Center (TUC) plan. The TUC plan and TOD subarea plan are anticipated to be completed and ready for the adoption process early 2004. 6300 Southcenter Boulevard, Suite #100 Tukwila, Washington 98188 Phone: 206 431 3670 Fax: 206 -431 3665 Pronosed Ordinance The timing, type and extent of a TOD project is highly dependent upon the construction of local and regional transportation improvements in the area. Six months ago, funding for the I -405 expansion and the Strander Blvd extension project (and associated relocation of the Union Pacific Railroad line) seemed attainable, with construction anticipated to be completed within a 5 to 10 year timeframe. Thus, Staff recommended a conservative approach towards restricting land uses and retaining land available for a TOD project. Given the current funding scenario, it is now estimated at 10 to 15 years before the transportation improvements necessary to implement a successful TOD project will be constructed. Given this longer time frame, Staff is recommending modifying the moratorium to achieve the following during the planning period: allow more flexible use of properties ensure the viability and health of existing businesses maintain the larger tracts of vacant land Table 1. Changes incorporated into the Proposed Ordinance Current Ordinance No. 1996 1 Proposed Ordinance Within the TOD planning area: Within the TOD planning area. Prohibits the filing of permits and Allow applications and approvals related to interim uses: approvals related to such uses or Automobile sales lots activities as manufacturing, industrial Contractor or storage yards auto oriented businesses. Commercial parking These uses are easily redevelopable, having minimal impacts and This prohibits new development or the investments in infrastructure. expansion of existing uses that are incompatible for a future TOD. Exempt from the moratorium the expansion of existing businesses on existing Lots. This focuses on ensuring the viability of existing businesses. There are no other substantive differences between the existing ordinance and the proposed ordinance. Both ordinances: Prohibit the filing of all permits and approvals within the TOD planning area related to land divisions. Exempt from the moratorium the filing of and approvals for sign permits and building permits for tenant improvements. Pronosed Next Stens 1. Council holds a public hearing on the moratorium at their COW meeting on February 24, 2003. 2. At the Council's next regular meeting on March 3, 2003: a. Council takes no action. Current Ordinance No. 1996, establishing a moratorium on development in the TOD, will expire on March 16, 2003 Land divisions, development activities and land uses will occur in the area as allowed under the City's zoning. Planning and implementation of a TOD and other transportation improvements may be more difficult. b. Council adopts the proposed ordinance, and allows Ordinance No. 1996 to expire. Council revisits the moratorium in six months (August, 2003). 0 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RENEWING A SIX -MONTH MORATORIUM ON ACCEPTANCE OF APPLICATIONS FOR CERTAIN LAND DIVISIONS, AND DEVELOPMENT ACTIVITIES AND LAND USES WITHIN THE AREA DESIGNATED FOR TRANSIT ORIENTED DEVELOPMENT AROUND THE TEMPORARY COMMUTER RAIL/AMTRAK STATION AT THE LONGACRES SITE; PROVIDING FOR SEVERABILITY; DECLARING AN EMERGENCY; AND ESTABLISHING AN EtrhCTIVE DATE. WHEREAS, the City of Tukwila issued an Unclassified Use Permit in 1999 allowing Sound Transit to construct a temporary station for Sounder ___—...rter rail and Amtrak service at the Longacres site, adjacent to the Burlington Northern Railroad; WHEREAS, Sounder's Unclassified Use Permit for the temporary station expires in February 2004, and either the station must be built or permit renewed prior to this date; WHEREAS, the City recognized the unique opportunity to promote a more compact, mixed use, pedestrian- supportive pattern of development that makes effective use of its proximity and accessibility to the rail station, and includes a mix of retail, service, office and residential uses; WHEREAS, a more intensive pattern of transit oriented development (TOD) would assist the City with the redevelopment of the Tukwila Urban Center, one of thirteen designated urban centers within King County, and provide workers with commercial, public and recreational services close to where they live or work; WHEREAS, a more intensive pattern of TOD would benefit the region by assisting in achieving Growth Management Act requirements and increasing local and regional transit ridership; WHEREAS, in August 2001, the City held a workshop, inviting other key stakeholders to explore the possibilities for a TOD in the Longacres area; WHEREAS, the workshop resulted in strong support for the project and a "vision" for land use and transportation in the Longacres TOD area; WHEREAS, to implement this vision, the City applied for and was awarded a $1.5 million grant by the Federal Highways Administration to prepare a master plan for the Longacres area, identifying land use, urban design and transportation /circulation objectives, as well as to prepare implementing ordinances and design guidelines, complete environmental review of the plan and designate it as a planned action, and integrate the design of the permanent commuter rail /Amtrak station; WHEREAS, while the City anticipates the TOD master plan project to be completed by the end of 2003, some issues need to be addressed immediately in order for the TOD project to be successful; WHEREAS, the "Tukwila Urban Center" zoning district allows for a variety of high- intensity regional uses in the TOD planning area, including light industry and warehousing, some of which may not be of appropriate type, density or character to support the intent of a TOD; WHEREAS, the City has already received a proposal for development within the TOD planning area that would have been inconsistent with the stated vision for the TOD and threaten the successful implementation of the TOD master plan; WHEREAS, the Longacres site is considered one of the region's key opportunities for TOD, primarily due to the large amount of vacant and redevelopable land surrounding the station; WHEREAS, any significant amount of new development occurring prior to the establishment of a desired pattern of uses in the TOD master plan could jeopardize the City's ability to implement the TOD plan; WHEREAS, the City's Municipal Code allows for the division of land and adjustment of boundary lines that, if allowed to occur in the TOD planning area, would make future land assemblage for a TOD project difficult and costly, and threaten the successful implementation of the TOD master plan; WHEREAS, within the TOD planning area, the City desires to take immediate steps to .r G .e the land available for development or redevelopment, and restrict land uses that do not implement the vision for the area until the master plan and environmental review for the TOD at the Longacres site are completed, certain implementing zoning regulations are adopted by the City, and other related regional transportation infrastructure issues are decided; WHEREAS, the City also desires to ensure public input on these issues; WHEREAS, the City desires to preserve the status quo for the protection of the health, safety and welfare of City residents, as it relates to development in Tukwila, until these matters are more fully considered and, therefore, has determined that an emergency exists; WHEREAS, on September 16, 2002, the City adopted Ordinance No. 1996, establishing a six-month moratorium on acceptance of applications for certain Iand divisions, and development activities and land uses within the area designated for transit- oriented development (TOD) around the temporary commuter rail /Amtrak station at the Longacres site; and WHEREAS, Ordinance No. 1996 will expire on March 16, 2003, and the TOD planning process is not yet completed; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Findings of Fact and Emergency Declared. The "Whereas" clauses above are hereby adopted by reference as the City Council's findings of fact as if fully set forth herein. Furthermore, the City Council hereby declares an c....;,.bc...y necessary for the protection of the public health and safety. Section 2. Moratorium Area Established. For the purposes of this ordinance, "the TOD planning area" is identified in Figure 1. This area is bounded by I-405 on the north, Tukwila city limits on the east, the southern boundary of Parcel No. 2523049006 on the south, and West Valley Highway on the west. Section 3. Moratorium on Activities. A moratorium is hereby established upon the filing of permits and approvals within the TOD planning area relating to: (a) Land divisions: This includes all permits and approvals related to subdivisions, short subdivisions, boundary line adjustments, and lot consolidations. (b) Development Activities and Land Uses: Except for sign permits, building permits for tenant improvements, and expansion of existing businesses on existing lots, this includes all applications and approvals for any and all (i) rezones, (ii) conditional use permits, (iii) unclassified use permits, (iv) variances, (v) binding site plans, (vi) required environmental review, (vii) building permits, and (viii) land altering permits relating to the following activities and uses: Automobile, recreational vehicles or travel trailer sales rooms. No dismantling of cars or travel trailers nor sale of used parts allowed. Automotive services Commercial laundries Heavy equipment repair and salvage Internet data/ telecommunication centers Manufacturing, processing and /or packaging of foods, including but not limited to, baked goods, beverages (except fermenting and distilling), candy, canned or preserved foods, dairy products and byproducts, frozen foods, instant foods and meats (no slaughtering) Manufacturing, processing and /or packaging pharmaceuticals and related products, such as cosmetics and drugs Manufacturing, processing, and/ or packaging previously prepared materials including, but not limited to, bags, brooms, brushes, canvas, clay, clothing, fur, furniture, glass, ink, paint, paper, plastics, rubber, tile, and wood Manufacturing, processing, assembling, packaging and /or repairing electronic, mechanical or precision instruments such as medical and dental equipment, photographic goods, measurement and control devices, and recording equipment. Motels Recreation facilities (commercial indoor), including bowling alleys, skating rinks, shooting ranges Drive through restaurants Warehouse storage and/ or wholesale distribution facilities Amusement parks Cemeteries and crematories Drive -in theaters Electrical substations distribution Manufacturing, processing and /or assembling previously prepared metals including, but not limited to, stamping, dyeing, shearing or punching of metal, engraving, galvanizing and hand- forging, Section 4. Effective Period of Moratorium. The moratorium established by this ordinance shall become effective as set forth in Section 8 of this ordinance, and shall continue in effect for six months thereafter unless repealed, renewed or modified by the City Council after a subsequent public hearing and entry of findings of fact. Section 5. Work Program. The Mayor is authorized to allocate the necessary resources to prepare a work program to address the land use and transportation planning issues identified in this ordinance and the City shall implement such a work program. Section 6. Severability. If any section, subsection, paragraph, sentence, dause or phrase of this ordinance or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be pre empted by state or federal law or regulation, such decision or preemption shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other persons or circumstances. Section 7. Effective Date. This ordinance, as a public emergency ordinance necessary for the protection of the public health and safety, shall take effect and be in full force immediately upon its adoption. PASSED BY eatE AUTHHN"rICATED: City Ceti( TO FOIZMBY• Office of t h e City Attorney THE CITY OF TU KWILA W A G COUNCIL OF day of Steven M. Mullet, M Filed with i C c. Pagsedby the City Published: 14usubez: Ordinance Transit Oriented Development (TOD) Planning Area Figure 1 Development Moratorium 9/17/02-doe City of Tukwila Washington Ordinance No. 1 I'7 n In AN ORDINANCE 01? THE CITY COUNCIL 01? THE CITY OF TUICWILA, WASHINGTON, CREATING A SIX -MONTH MORATORIUM ON ACCEPTANCE 01? APPLICATIONS FOR CERTAIN LAND DIVISIONS, AND DEVELOPMENT ACTIVITIES AND LAND USES WITHIN THE AREA DESIGNATED FOR TRANSIT- ORIENTED DEVELOPMENT AROUND THE TEMPORARY COMMUTER RAIL/AMTRAK STATION AT LONGACRES; PROVIDING FOR SEVERABILITY; DECLARING AN EMERGENCY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila issued an Unclassified Use Permit in 1999 allowing Sound Transit to construct a temporary station for Sounder commuter rail and Amtrak service at Longacres, adjacent to the Burlington Northern Railroad; and WHEREAS, Sounder's Unclassified Use Permit for the temporary station expires in February, 2004, and either the station must be built or permit renewed prior to this date; and WHEREAS, the City recognized the unique opportunity to promote a more compact, mixed use, pedestrian supportive pattern of development that makes effective use of its proximity and accessibility to the rail station, and includes a mix of retail, service, office and residential uses; and WHEREAS, a more intensive pattern of transit- oriented development (TOD) would assist the City with the redevelopment of the Tukwila Urban Center, one of thirteen designated urban centers within King County, and provide workers with commercial, public and recreational services close to where they live or work; and WHEREAS, a more intensive pattern of TOD would benefit the region by assisting in achieving Growth Management Act requirements and increasing local and regional transit rider- ship; and WHEREAS, in August, 2001, the City held a workshop, inviting other key stakeholders to explore the possibilities for a TOD in the Longacres area and WHEREAS, the workshop resulted in strong support for the project and a "vision" for land use and transportation in the Longacres TOD area and WHEREAS, to implement this vision, the City applied for and was awarded a $1.5 million grant by the Federal Highways Administration to prepare a master plan for the Longacres area, identifying land use, urban design and transportation/circulation objectives, as well as to prepare implementing ordinances and design guidelines, complete environmental review of the plan and designate it as a planned action, and integrate the design of the permanent commuter rail/Amtrak station; and WHEREAS, while the City anticipates the TOD master plan project to be completed by the end of 2003, some issues need to be addressed immediately in order for the TOD project to be successful; and WHEREAS, the Tukwila Urban Center (TUC) zoning district allows for a variety of high-intensity regional uses in the TOD planning area, including light industry and warehousing, some of which may not be of appropriate type, density or character to support the intent of a TOD; and WHEREAS, the City has already received a proposal for development within the TOD planning area that would have been inconsistent with the stated vision for the TOD and threaten the successful implementation of the TOD master plan; and WHEREAS, the Longacres site is considered one of the region's key opportunities for TOD, primarily due to the large amount of vacant and redevelopable land surrounding the station; and WHEREAS, any significant amount of new development occurring prior to the establishment of a desired pattern of uses in the TOD master plan could jeopardize the City's ability to implement the TOD plan; and WHEREAS, the City's Municipal Code allows for the division of land and adjustment of boundary lines that, if allowed to occur in the TOD planning area, would make firture land assemblage for a TOD project difficult and costly, and threaten the successful implementation of the TOD master plan; and WHEREAS, within the TOD planning area, the City desires to take iromMfotP steps to preserve the land available for development or redevelopment and restrict land uses that do not implement the vision for the area until the TOD at Longacres master plan and —mental review are completed, certain implementing zoning regulations are adopted by the City, and other related regional transportation infrastructure issues are decided; and WHEREAS, the City also desires to ensure public input on these issues; and WHEREAS, the City desires to preserve the status quo for the protection of the health, safety and welfare of City residents, as it relates to development in Tukwila, until these matters are more fully considered and, therefore, has determined that an emergency exists; NOW, 'THEREFORE, THE CITY COUNCIL OF THE crry OF TUICWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Findings of Fact and Emergency Declared. The "Whereas" clauses, above, are hereby adopted by reference as the City Council's findings of fact as if fully set forth herein. Furthermore, the City Council hereby declares an emergency necessary for the protection of the public health and safety. Section 2. Moratorium Area Established. For the purposes of this ordinance, "the TOD planning area" is identified in Figure 1. This area is bounded by 1-405 on the north, Tukwila city limits on the east, the southern boundary of Parcel 112523049006 on the south, and West Valley Highway on the west. Section 3. Moratorium on Activities. A moratorium is hereby established upon the filing of all permits and approvals within the TOD planning area: A. Land Divisions. This includes all permits and approvals related to subdivisions, short subdivisions, boundary line adjustments, and lot consolidations. B. Development Activities and Land Uses. Except for sign permits and building permits for tenant improvements, this includes all applications and approvals for any and all rezones, conditional use permits, unclassified use permits, variances, binding site plans, required environmental review, building permits, and land altering permits relating to the following activities and uses: Development Moratorium 9/17/02-doc 1. Automobile, recreational vehicles or travel trailer sales rooms and travel trailer or used car sales lots. No dismantling of cars or travel trailers nor sale of used parts allowed. 2. Automotive services. 3. Commercial laundries. 4. Commercial parking, except for commercial parking located within a structure having substantial ground floor retail or commercial activities such that the pedestrian and commercial environments are not negatively impacted by the parking use. 5. Contractor storage yards. 6. Heavy equipment repair and salvage. 7. Internet dataftelecommunication centers. 8. Manufacturing, processing and/or packaging of foods, including but not limited to, baked goods, beverages (except fermenting and distilling), candy, canned or preserved foods, dairy products and byproducts, frozen foods, instant foods and meats (no slaughtering). 9. Manufacturing, processing and/or packaging pharmaceuticals and related products, such as cosmetics and drugs. 10. Manufacturing, processing, and/or packaging previously prepared materials including, but not limited to, bags, brooms, brushes, canvas, clay, clothing, fur, furniture, glass, ink, paint, paper, plastics, rubber, tile, and wood. 11. Manufacturing, processing, assembling, packaging and/or repairing electronic, mechanical or precision instruments such as medical and dental equipment, photographic goods, measurement and control devices, and recording equipment. 12. Motels. 13. Recreation facilities (commercial indoor), including bowling alleys, skating rinks, shooting ranges. 14. Drive-through restaurants. 15. Warehouse storage and/or wholesale distribution facilities. 16. Amusement parks. 17. Cemeteries and crematories. 18. Drive -in theaters. 19. Electrical substations distribution. 20. Manufacturing, processing and/or assembling previously prepared metals including, but not limited to, stamping, dyeing, shearing or plumbing of metal, engraving, galvanizing and hand- forging. Section 4. Effective Period of Moratorium. The moratorium established by this ordinance shall become effective as set forth in Section 8 below, and shall continue in effect for six months thereafter unless repealed, renewed or modified by the City Council after a subsequent public hearing and entry of findings of fact. Section 5. Public Hearing to be Held. A public hearing on the issue of the moratorium shall be held no later than 60 days after the date of adoption herein. Section 6. Work Program. The Mayor is authorized to allocate the necessary resources to prepare a work program to address the land use and transportation planning issues identified in this ordinance and the City shall implement such a work program. Section 7. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be pre empted by state or federal law or regulation, such decision or preemption shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other persons or circumstances. Development Moratorium 9 /17/02.doc Section 8. Effective Date. This ordinance, as a public emergency ordinance necessary for the protection of the public health and safety, shall take effect and be in full force immediately upon its adoption. PASSED BY THE CITY COUNCIL OF THE CI OF "rUKWILA, WASHINGTON, at a Regular Meeting thereof this )1ting day of 2002. C1 6 1 4 4 4 IV VW-CZ-A Steven M. Mullet, Mayor ATTEST/AUTHENTICATED: e E. Cantu, CMC, City Clerk APPROVED AS TO FORM: By Office of the Cily&ttorncy FILED WITH THE CITY CLERK: v PASSED BY T4„cITZCOUNCIL: PUBLISHED: EFFECTIVE DATE:r ORDINANCE NO.: Development Moratorium 9/17/02.doc Transit Oriented Development (TOD) Planning Area Figure 1 City of Tukwila Department of Community Development Steve Lancaster, Director To: Community Affairs and Parks Committe From: Lynn Miranda, Senior Planner Date: January 22, 2003 Subject: Six -month renewal of Ordinance No. 1996, Establishing a temporary moratorium on certain land divisions and land use decisions in the Longacres TOD planning area, and proposed modifications. Background On September 2002, Council adopted Ordinance No. 1996, establishing a six -month moratorium on the acceptance of certain land divisions and land use decisions within the transit oriented development (TOD) planning area surrounding the Longacres Sounder /Amtrak rail station (see Figure 1). The moratorium was intended to preserve land available for development or redevelopment and restrict land uses that do not implement the vision for the area until land use and transportation plans and regulations supporting the TOD at Longacres are in place. Council is required to hold a public hearing, and subsequently renew, revise or repeal the ordinance by March 16, 2003. Staff is proposing modifications to the ordinance. TJndate on TOD Plan In the fall of 2002, the City received a $1.5 million federal grant to prepare a redevelopment plan for the Longacres area, including identifying land use, urban design and transportation/circulation objectives. These grant funds will also be used to complete the Tukwila urban center (TUC) plan and incorporate the TOD plan in the overall plans for the TUC. Since passage of the moratorium: Contracts /scope of work are being prepared by Freedman Tung Bottomley (FTB) for land use /design services on the TOD project, and with EcoNorthwest (ECO) for financial feasibility and analysis services. These contracts will go before Council for approval in February/March 2003. These will be funded by the $1.5 M federal grant for TOD planning. A series of workshops and stakeholder meetings will soon follow, including Boeing, Metro, Sound Transit, WSDOT, and local property owners and businesses. The consultant team, based on workshop results, will prepare a range of alternative land use and capital improvement scenarios for the TOD area. Steven M. Mullet, Mayor 6300 Southcenter Boulevard, Suite #100 Tukwila, Washington 98188 Phone: 206 -431 -3670 Fax: 206 431 -3665 These alternatives will be folded into the overall Tukwila Urban Center (TUC) plan. The TUC plan and TOD subarea plan are anticipated to be completed and ready for the adoption process early 2004. StaffPronosed Modifications to the Ordinance The timing, type and extent of a TOD project is highly dependent upon the construction of local and regional transportation improvements in the area. Six months ago, funding for the I -405 expansion and the Strander Blvd extension project (and associated relocation of the Union Pacific Railroad line) seemed attainable, with construction anticipated to be completed within a 5 to 10 year timeframe Thus, Staff recommended a conservative approach towards restricting land uses and retaining land available for a TOD project. Given the current funding scenario, it is now estimated at 10 to 15 years before the transportation improvements necessary to implement a successful TOD project will be constructed. Given this longer time frame, Staff is recommending modifying the moratorium to achieve the following during the planning period: allow more flexible use of properties ensure the viability and health of existing businesses preserve the larger tracts of vacant land Table 1. Proposed Modifications Current Ordinance Moratorium on applications and approvals related to high- intensity uses (e.g. manufacturing, industrial auto oriented businesses) which are not of appropriate type, density or character to support the intent of a TOD. Proposed Modification Allow applications and approvals related to interim uses that are easily redevelopable, with minimal impacts and investment in infrastructure. Limit these uses to: Automobile, recreational vehicle or travel trailer sales lots. Contractor or storage yards. Commercial parking. Allow for the expansion of existing businesses on existing lots. This focuses on preserving vacant parcels and ensuring the viability of existing businesses. Options 1. Council renews the Ordinance as is. It remains in effect for six months, at the end of which Council must hold another public hearing and renew, modify, or repeal the moratorium. 2. Council modifies the Ordinance. It remains in effect for six months, at the end of which Council must hold another public hearing and either renew, modify, or repeal the moratorium. 3. Council repeals the Ordinance Land divisions, development activities and land uses will occur in the area as allowed under the City's zoning. Planning and implementation of a TOD and other transportation improvements may be more difficult. Proposed Next Steps Planning for the TOD area will begin in March, and there is still a need for keeping the moratorium in place until a land use/transportation framework is adopted Staff recommends renewing the ordinance, with modifications, as described in Table 1. Staff also recommends maintaining the current restriction on further land divisions, as well as the other provisions of Ordinance No. 1996. Attached is a copy of the Ordinance with the recommended modifications. 1. Forward the Ordinance as written or amended to the Council for a public hearing at their COW meeting on February 24, 2003. 2. At their regular meeting on March 3, 2003, the Council will determine whether to renew, modify or repeal the moratorium. Transit Oriented Development (TOD) Planning Area Figure 1 CITY OF TUKWILA, WASHINGTON Ordinance No. 4996 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, CREATING-RENEWING A SIX MONTH MORATORIUM ON ACCEPTANCE OF APPLICATIONS FOR CERTAIN LAND DIVISIONS, AND DEVELOPMENT ACTIVITIES AND LAND USES WITHIN THE AREA DESIGNATED FOR TRANSIT ORIENTED DEVELOPMENT AROUND THE TEMPORARY COMMUTER RAIL/AMTRAK STATION AT LONGACRES; PROVIDING FOR SEVERABILITY; DECLARING AN EMERGENCY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila issued an Unclassified Use Permit in 1999 allowing Sound Transit to construct a temporary station for Sounder commuter rail and Amtrak service at Longacres, adjacent to the Burlington Northern Railroad; and WHEREAS, Sounder's Unclassified Use Permit for the temporary station expires in February, 2004, and either the station must be built or permit renewed prior to this date; and WHEREAS, the City recognized the unique opportunity to promote a more compact, mixed use, pedestrian supportive pattern of development that makes effective use of its proximity and accessibility to the rail station, and includes a mix of retail, service, office and residential uses; and WHEREAS, a more intensive pattern of transit oriented development (TOD) would assist the City with the redevelopment of the Tukwila Urban Center, one of thirteen designated urban centers within King County, and provide workers with commercial, public and recreational services close to where they live or work; and WHEREAS, a more intensive pattern of TOD would benefit the region by assisting in achieving Growth Management Act requirements and increasing local and regional transit ridership; and WHEREAS, in August, 2001, the City held a workshop, inviting other key stakeholders to explore the possibilities for a TOD in the Longacres area; and WHEREAS, the workshop resulted in strong support for the project and a "vision" for land use and transportation in the Longacres TOD area; and WHEREAS, to implement this vision, the City applied for and was awarded a $1.5 million grant by the Federal Highways Administration to prepare a master plan for the Longacres area, identifying land use, urban design and transportation/circulation objectives, as well as to prepare implementing ordinances and design guidelines, complete environmental review of the plan and designate it as a planned action, and integrate the design of the permanent commuter rail/Amtrak station; and WHEREAS, while the City anticipates the TOD master plan project to be completed by the end of 2003, some issues need to be addressed immediately in order for the TOD project to be successful; and WHEREAS, the Tukwila Urban Center (TUC) zoning district allows for a variety of high- intensity regional uses in the TOD planning area, including light industry and warehousing, some of which may not be of appropriate type, density or character to support the intent of a TOD; and WHEREAS, the City has already received a proposal for development within the TOD planning area that would have been inconsistent with the stated vision for the TOD and threaten the successful implementation of the TOD master plan; and WHEREAS, the Longacres site is considered one of the region's key opportunities for TOD, primarily due to the large amount of vacant and redevelopable land surrounding the station; and WHEREAS, any significant amount of new development occurring prior to the establishment of a desired pattern of uses in the TOD master plan could jeopardize the City's ability to implement the TOD plan; and WHEREAS, the City's Municipal Code allows for the division of land and adjustment of boundary lines that, if allowed to occur in the TOD planning area, would make future land assemblage for a TOD project difficult and costly, and threaten the successful implementation of the TOD master plan; and WHEREAS, within the TOD planning area, the City desires to take immediate steps to preserve the land available for development or redevelopment and restrict land uses that do not implement the vision for the area until the TOD at Longacres master plan and environmental review are completed, certain implementing zoning regulations are adopted by the City, and other related regional transportation infrastructure issues are decided; and WHEREAS, the City also desires to ensure public input on these issues; and WHEREAS, the City desires to preserve the status quo for the protection of the health, safety and welfare of City residents, as it relates to development in Tukwila, until these matters are more fully considered and, therefore, has determined that an emergency exists,: and WHEREAS. the City adopted Ordinance No. 1996 on Sentemher 16, 2002. establishing a six -month moratorium on accentance of annlications for certain land divisions, and development activities and land uses within the area designated for transit oriented development (TOD) around the temnorary commuter rail /Amtrak station at Longacres: and WHEREAS. the Ordinance will exnire on March 16. 2003. and the TOD nlanninu_nrocess is not vet completed: and WHEREAS. City desires to renew the Ordinance. with modifications. for a suhseouent six -month neriod. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS. FOLLOWS: Section I. Findings of Fact and Emergency Declared. The "Whereas" clauses, above, are hereby adopted by reference as the City Council's findings of fact as if fully set forth herein. Furthermore, the City Council hereby declares an emergency necessary for the protection of the public health and safety. Section 2. Moratorium Area Established. For the purposes of this ordinance, "the TOD planning area" is identified in Figure I. This area is bounded by 1 -405 on the north, Tukwila city limits on the east, the southern boundary of parcel number 2523049006 on the south, and West Valley Highway on the west. Section 3. Moratorium on Activities. A moratorium is hereby established upon the filing of permits and approvals within the TOD planning area relating to: (a.) Land divisions. This includes all permits and approvals related to subdivisions, short subdivisions, boundary line adjustments, and lot consolidations. (b.) Develnnment Activities and Land IJses: Except for sign permits,-and building permits for tenant improvements.. and expansion of existing businesses on existing bus, this includes all applications and approvals for any and all (i) rezones, (ii) conditional use permits, (iii) unclassified use permits, (iv) variances, (v) binding site plans, (vi) required environmental review, (vii) building permits, and (viii) land altering permits relating to the following activities and uses: Automobile reereational- vehielesor travel trailer. sales- rooms trailer or used-car -sales lotsrAutomnhile. recreational vehicles or travel trailer sales rooms. No dismantling of cars or travel trailers nor sale of used parts allowed. Automotive services Commercial laundries 6emmereial- parking for- eommereial-parking- loeated- withiva st ueture having -substantialground. floor -retail or -commercial activities such- that -the pedestrian-and commereial-environmentsarenot- negatively impaetedby -the parking -use: Contractor. storage Heavy equipment repair and salvage Internet data/telecommunication centers Manufacturing, processing and/or packaging of foods, including but not limited to, baked goods, beverages (except fermenting and distilling), candy, canned or preserved foods, dairy products and byproducts, frozen foods, instant foods and meats (no slaughtering) Manufacturing, processing and /or packaging pharmaceuticals and related products, such as cosmetics and drugs Manufacturing, processing, and/or packaging previously prepared materials including, but not limited to, bags, brooms, brushes, canvas, clay, clothing, fur, furniture, glass, ink, paint, paper, plastics, rubber, tile, and wood Manufacturing, processing, assembling, packaging and/or repairing electronic, mechanical or precision instruments such as medical and dental equipment, photographic goods, measurement and control devices, and recording equipment. Motels Recreation facilities (commercial indoor), including bowling alleys, skating rinks, shooting ranges Drive through restaurants Warehouse storage and/or wholesale distribution facilities Amusement parks Cemeteries and crematories Drive -in theaters Electrical substations distribution Manufacturing, processing and /or assembling previously prepared metals including, but not limited to, stamping, dyeing, shearing or punching of metal, engraving, galvanizing and hand forging. Section 4. Effective Period of Moratorium. The moratorium established by this ordinance shall become effective as set forth in Section 8 below, and shall continue in effect for six months thereafter unless repealed, renewed or modified by the City Council after a subsequent public hearing and entry of findings of fact. Section S4 Publie Hearing -to -be -Held. A public •hearing on the •issue -ef the moratorium shall be held no later than sixty (60) days -after the date of adoption herein: Section 65. Work Program. The Mayor is authorized to allocate the necessary resources to prepare a work program to address the land use and transportation planning issues identified in this ordinance and the City shall implement such a work program. Section 76. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be pre empted by state or federal law or regulation, such decision or preemption shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other persons or circumstances. Section 87. Effective Date. This ordinance, as a public emergency ordinance necessary for the protection of the public health and safety, shall take effect and be in full force immediately upon its adoption PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2003. ATTEST /AUTHENTICATED: Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM: By Office of the City Attorney Steven M. Mullet, Mayor Transit Oriented Development (TOD) Planning Area Figure 1 NOTICE OF PUBLIC HEARING Notice is hereby given that the Tukwila City Council will hold a public hearing on Monday, February 24, 2003, beginning at 7:00 p.m. in the Council Chambers at Tukwila City Hall, 6200 Southcenter Blvd, Tukwila Washington, to consider the following: A proposed ordinance creating a six -month moratorium on acceptance of applications for certain land divisions, and development activities and land uses within the area designated for Transit Oriented Development (TOD) around the temporary commuter rail /Amtrak station at Longacres. All interested persons are invited to be present to voice approval, disapproval, or opinions on this issue. For those unable to attend in person, you may submit written testimony to the City Clerk's office until 5:00 p.m. on the day of the hearing. The City of Tukwila strives to accommodate people with disabilities. Please contact the City Clerk's Office at (206) 433 -1800 or TDD (206) 248 -2933 by Noon on the day of the hearing if we can be of assistance. Dated this day °ESA's 2003. Published: Seattle Times, February 10, 2003 City of Tukwila Jane E. Cantu, CMC, City Clerk February 12, 2003 Dear Sir or Madam: City of Tukwila Department of Community Development Current Ordinance No. 1996 Within the TOD planning area: Prohibits the filing of permits and approvals related to such uses or activities as manufacturing, industrial auto oriented businesses. This prohibits new development or the expansion of existing uses that are incompatible for a future TOD. NOTICE OF PUBLIC HEARING Table 1. Changes to be incorporated into the proposed ordinance Proposed Ordinance Within the TOD planning area: Allow applications and approvals related to interim uses: Automobile sales lots Contractor or storage yards Commercial parking These uses are easily redevelopable, with minimal impacts and investments in infrastructure. Exempt from the moratorium the expansion of existing businesses on existing lots. This focuses on ensuring the viability of existing businesses. Steven M Mullet, Mayor Steve Lancaster, Director On September 16, 2002, Tukwila's City Council adopted Ordinance No. 1996, establishing a six -month moratorium on acceptance of applications for certain land divisions, and development activities and land uses within the area designated for transit- oriented development (TOD) around the temporary commuter rail/Amtrak station at Longacres (see Figure 1). The moratorium was intended to preserve land available for development or redevelopment and restrict land uses that do not implement the vision for the area until land use and transportation plans and regulations supporting the TOD at Longacres are in place. The moratorium will expire on March 16, 2003. A new ordinance is proposed to extend the moratorium for an additional six months, while relaxing some of the restrictions currently in place. A public hearing on the proposed ordinance is scheduled for Monday, February 24, 2003, at 7:00 p.m. in Council Chambers, located in Tukwila City Hall. Table 1 identifies changes to be incorporated into the proposed ordinance. These are intended to achieve the following during the TOD planning period: allow more flexible use of properties ensure the viability and health of existing businesses preserve the larger tracts of developable land 6300 Southcenter Boulevard, Suite 100 Tukwila, Washington 98188 Phone: 206 431 -3670 Fax: 206 431 -3665 2 February 12, 2003 There are no other substantive differences between the existing ordinance and the proposed ordinance. Both ordinances: Prohibit the filing of all permits and approvals within the TOD planning area related to land divisions. Exempt from the moratorium the filing of and approvals for sign permits and building permits for tenant improvements. Continue to allow a very broad range of permitted and conditionally permitted land uses and development activities. According to City records, your property or business may be affected by this moratorium. Consequently, we wanted notify you of the public hearing on this ordinance and the proposed modifications scheduled for Monday, February 24, 2003, at 7:00 p.m. in Council Chambers, located in Tukwila City Hall, 6200 Southcenter Blvd. For additional information, or to obtain a copy of the proposed ordinance, please contact Nora Gierloff, Planning Supervisor, at 206.431.3670. Sincerely, Steve Lancaster Director, Department of Community Development Transit Oriented Development (TOD) Planning Area Figure 1 Community Affairs Parks February 11, 2003 Pam asked if we want to keep land industrial, if we should discourage splitting up large lots there. She wanted to know what uses could be expected in the manufacturing and industrial areas. Recommend issue to COW. 3. Como Plan Amendments for 2003 There are three comp plan amendments that have been submitted for consideration this year. The first is a staff request to review offices in MIC /H that was the subject of the earlier issue on the agenda. The second is to revise the Sensitive Areas ordinance to include the Best Available Science and perhaps shoreline issues. There is no clear definition for Best Available Science. When Joan asked about it, Steve said it requires staff to show their research and to review the literature on each issue. The last issue is a citizen request for a rezone of property from LDR to Office. The Council will be briefed on these issues March 3 and a public hearing will be March 17 Recommend briefing to Council. 4. Moratorium Review There has been a moratorium on development of the Transit Oriented Development (TOD) site near Longacres since September, 2002. A study of the area is about to begin, and the findings from that will go into the larger Tukwila Urban Center plan. Because the city had thought transportation improvements that would ensure the viability of the TOD would happen fairly soon, the moratorium was to preclude uses in the near term. However, those improvements are not likely to be done soon, so staff recommends allowing some uses of the property, including trailer or car parking and sales, contractor storage, and expansion of existing businesses. The idea is to have uses that won't warrant buildings that would be hard to remove if the area were ready for redevelopment. This would require a limited moratorium, with certain allowed uses. Recommend to Public Hearina Feb 24 at the COW. 5. Fourth Quarter Reports Pam had a question, and it was about Codiga. Bruce said Mr. Codiga is somewhat confused, and thinks he still owns the property that the city had bought from him several years ago. The barn needs to come down, but before that happens the city needs to deal with the dozens of feral cats living in the barn. Joan wanted Jim to have a chance to ask questions about the reports, so it should be included next meeting if he has questions. Information. 6. Starfire The committee had a copy of the initial agreement items the city wants to reach with Starfire. Their copy was easy to understand; the attorneys will work on it tomorrow to ensure it has the legal wherewithal to withstand scrutiny. David St Pierre will work on it from the city; Steve DeJulio will work on it for Starfire. Starfire plans to build three new lighted outdoor soccer fields and two indoor lighted fields. The three turf fields to the west won't be done in the first phase, so will remain as is. The new fields will have very good new artificial turf that lets rain through, among other attributes. There will be some leftover re -use water that Fort Dent used when it was all grass. There will be a concessionaire, and the City will be allowed to use the park for the 4 of July. The project will have a 40 -year lease. The new fields will allow the advanced players to use them, and could result in some hotel room rentals for Tukwila. As Starfire is working to get charitable non -profit status, they won't be required to pay an admissions tax. Recommend aareement to Regular Meetina for adoption. Committee chair approval Page 2 CAS Number 03-023 I Agenda Item Title: Original Sponsor: Timeline: Sponsor's Summary: Recommendations: Sponsor: Committee: Administration: Cost Impact (if ]mown): Fund Source (if known): Meeting Date 2/24/03 2/24/03 2/24/03 COUNCIL AGENDA SYNOPSIS Meetinz Date Prepared by 2/24/03 ARD R 3 I Meeting Date 2/24/03 Proposed Resolution 2/24/03 Staff Report dated February 12, 2003 I Mayor's review I Council review I U I I I I I Original Agenda Date: 2/24/03 Resolution adopting Hartford Deferred Compensation Plan documents. Council Admin. X Approve at March 3, 2003 Regular Meeting Update of all Plan document changes. See attached Staff Report. Approve as submitted Finance Safety Move forward January 18, 2003 Meeting. Same as Sponsor N/A N/A Action 4V r «'.frt Finance Safety February 18, 2003 minutes Initials NOTE: Copies of the Plan documents are under separate cover. ITEM NO. 5. Attachments City of Tukwila 6200 Southcenter Boulevard a Tukwila, Washington 98188 G o MEMORANDUM To: Alan Doerschel, Finance Director a 1^ From: Linda Grage, Fiscal Coordinator Date: February 12, 2003 Subject: Hartford Deferred Compensation Draft Resolution The Economic Growth and Tax Relief Reconciliation Act EGTRRA) of 2001 caused many changes to the City's Deferred Compensation Plan for the year 2002 and forward. The Act will require several amendments to the City's Plan Document and other procedural changes. Attached is a draft Resolution incorporating the new tax law changes into our Deferred Compensation Plan and replacing the document in its entirety. Also the resolution acknowledges a new Administrative Services Agreement with Hartford Life Insurance Company, and an amended Group Annuity Contract. Please put these items on the Finance and Safety Committee Agenda for Tuesday February 18, 2003. The resolution has 3 documents attached, an amended Plan Document, a signed Administrative Services agreement, and an amended Group Annuity Contract. Listed below is a summary of the items that have been or need to be accomplished: A new Administrative Services Agreement with Hartford Life Insurance Company has been signed and executed in November of 2002. EGTRRA required certain changes to our group annuity contract. Also, effective October 2002 Hartford added enhancements to our plan, new fund options and reduced some of the fees. We have received an amended Group Annuity Contract from Hartford. No further action is required, however I recommend we acknowledge the new contract in the resolution and attached it After EGTRRA was passed, several changes happened to our plan. IRS published Revenue Procedure 2002 -29, which requires that qualified plans must be amended to conform to the final regulations by the close of the 2003 plan year. The amended plan document references different effective dates for some of the provisions. I am recommending that the City incorporate all of the plan changes into a new Plan Document and adopt the amended Plan by Resolution. I received a specimen plan document from Hartford along with the amendments and created a new revised plan document. A draft copy is attached. The major changes are summarized below: Amending the Contribution Limits including the Pre Retirement Catch -Up Adding an Age 50+ Catch -up Provision Redefining "Includible Compensation" within the meaning of Code Section 415(c)(3) Page 3 Deferred Comp Plan Document 2/12/03 There have been several Council actions regarding the Deferred Compensation Plan along with administrative changes. A history of the plan is listed below: 1. Resolution 569 dated March 7, 1977 authorizes the Deferred Compensation Plan. 2. The original Plan Document with Hartford was executed in May 1977. 3. A four-page amendment to the Plan was signed by the Mayor in 1979, however there was no resolution. 4. Resolution No. 812 was passed on February 16, 1982 authorizing the Mayor to execute an additional deferred compensation plan. To date, we have only had one deferred compensation plan. 5. There is a signed application for a Group Annuity Contract with Hartford Life Insurance Company dated December 13, 1982. 6. Resolution 1026 creates an Agency Fund to account for the City's Deferred Compensation Plan Balances. 7. There is a Plan Document signed by Mayor Van Dusen on June 9, 1989, with no accompanying resolution. 8. There is a signed Contract Endorsement on March 27, 1997 that enhances the plan effective November 1, 1996. 9. Resolution 1412 is the most current action amending the deferred compensation plan. It was signed December 7, 1998 and also repealed Resolution 1026, which eliminated the Deferred Compensation 631 Agency Fund that was no longer required. 10. The most recent plan document was established with Resolution 1412 dated December 7, 1998. This Resolution also authorizes the City to sign a new contract with Hartford Life Insurance Company. Our goal with the proposed resolution is to incorporate all the changes that have occurred into one place for ease of reference. And, in the future, keep the housekeeping of these documents to a minimum. Please let me know if you need additional information, have any other comments or changes. Thanks, Attachments Acceptance of Rollover Contributions from other plans in addition to other Governmental 457 plans, (401,403(b), and 408 IRAs) More Flexible Distribution (Payout) Options upon severance of employment Replaced Section 4.7 (Minimum Distribution Requirements) in its entirety with provisions that allows options for the participant or the beneficiary to choose or apply the 5 year rule l t l u C k1 City of Tukwila Washington Resolution No. DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, TO ADOPT THE AMENDED PLAN DOCUMENT FOR THE CITY OF TUKWILA DEFERRED COMPENSATION PLAN; AND ACKNOWLEDGING THE AMENDED GROUP ANNUITY CONTRACT AND THE SIGNING OF A NEW ADMINISTRATIVE AGREEMENT WITH THE HARTFORD LIFE INSURANCE COMPANY. WHEREAS, the City established the City of Tukwila Deferred Compensation Plan (hereinafter "Plan per Resolution 569 on March 7, 1977; and WHEREAS, the City is authorized to sign a new contract with Hartford Life Insurance Company per Resolution 1412 signed on December 7, 1998; and WHEREAS, the City desires to amend the Plan and related documents to conform with changes in the federal law brought about by the Economic and Tax Relief Reconciliation Act of 2001 "EGTRRA and to conform with the technical corrections to EGTRRA contained in the Job Creation And Worker Assistance Act of 2002; and WHEREAS, the City desires to amend the Plan to conform with the final and temporary Treasury regulations under §401(a)(9) of the Internal Revenue Code as published in the Federal Register on April 17, 2002, 74 FR 18987; and WHEREAS, the City received an amended Group Annuity Contract from Hartford Life Insurance Company containing enhancements and lower fees; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The attached amended City of Tukwila Deferred Compensation Plan is hereby adopted, effective as indicated within the Plan Document. Section 2. The City accepts the amended Group Annuity Contract issued by Hartford Life Insurance Company, which offers more fund options, enhanced features, reduced fees, and is in compliance with EGTRRA requirements. Section 3. The City of Tukwila has signed a new Administrative Services Agreement with Hartford Life Insurance Company as required by EGTRRA and authorized by Resolution 1412. Deferred Comp Resolution No. Deferred Comp Resolution No. Page 2 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a regular meeting thereof this day of 2003. ATTEST AUTHENTICATED: Jane E. Cantu, City Clerk APPROVED AS TO FORM: By: Office of the City Attorney Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance No.: Pam Carter, Council President ATTACHED UNDER SEPARATE COVER FOR FINANCE SAFETY COMMITTEE AGENDA FEBRUARY 18, 2003 1. City of Tukwila Deferred Compensation Plan Document 2. Amended Group Annuity Contract with Hartford Life 3. Hartford Life Administrative Services Agreement Committee chair approval Finance and Safety Committee February 18, 2003 Present: Joe Duffie, Chair; Richard Simpson, Pam Carter (for Jim H) Alan Doerschel, Rhonda Berry, Lucy Lauterbach 1. Hartford Deferred Como Resolution Alan explained the draft resolution which adopts the City's deferred compensation program The resolution includes both some administrative housekeeping changes and some responses to legislation that require formal adoption. Once adopted, the resolution will be completely up to date. As no city funds are involved in this fund, it applies only to the employee contribution program for deferred compensation. Recommend resolution to COW. 2. Interfund Loans to Hotel/Motel Fund The Hotel Motel fund bought the land which is nearest I -405 east of West Valley. At the time it was purchased, it was to be used in conjunction with the convention center McCloud was going to build. Since then, the property is expected to be used when the Transit Oriented Development moves forward. That could be several years down the road. Because the loan to buy the property was a 5- year loan, Alan had two ways to deal with it. He could take out a bond, or could have the city carry the loan, and have Lodging pay the loan down until it is sold. Lodging will pay $100,000 per year on the principal to pay the loan down while interest rates are low. The city's debt charges are under 2 which is better than any loan or bond. The committee was concerned that the city may have to carry this debt for a long time. Alan said in the worst -case scenario, the General Fund could buy the loan from Lodging, and roll it into a bond. In the best -case scenario, we'll be able to sell the property for something approaching its sale price, in the next few years. Recommend to that evening's Regular Meeting.