HomeMy WebLinkAbout2008-12-08 Committee of the Whole MinutesCALL TO ORDER /PLEDGE OF ALLEGIANCE
Council President Duffie asked all City employees, citizens and visitors to stand and be recognized.
OFFICIALS
TUKWILA CITY COUNCIL
December 8, 2008 7:00 p.m.
Council Chambers City Hall
COMMITTEE OF THE WHOLE
Council President Duffie called the Tukwila City Council meeting to order at 7:03 p.m. and led the
audience in the Pledge of Allegiance.
Present were Joe Duffie, Council President, Councilmembers Joan Hernandez, Pam Linder, Dennis
Robertson, Verna Griffin, Kathy Hougardy, De'Sean Quinn.
CITY OFFICIALS
Jim Haggerton, Mayor; Rhonda Berry, City Administrator; Jim Morrow, Public Works Director; Gail
Labanara, Public Works Analyst; Derek Speck, Economic Development Director; David Haynes, Police
Chief; Nick Olivas, Fire Chief; Bruce Fletcher, Parks and Recreation Director; Rick Still, Parks and
Recreation Deputy Director; Shawn Hunstock, Finance Director; Peggy McCarthy, Deputy Finance
Director; Lisa Verner, Project Manager; Kimberly Matej, Council Analyst; Melissa Hart, Deputy City Clerk.
SPECIAL PRESENTATIONS
a. A Mothers Against Drunk Driving (M.A.D.D.) Award for Officer Matt Ludwig.
David Haynes, Police Chief, introduced Judy Eikin, Pacific Northwest Region Administrator with Mothers
Against Drunk Drivers (M.A.D.D.). Ms. Eikin presented Officer Matt Ludwig with the 2007 Driving Under
the Influence (DUI) Enforcement Excellence Award from Mothers Against Drunk Drivers. Officer Ludwig's
2007 arrest record included 48 DUI cases. Councilmembers congratulated and thanked Officer Ludwig
for his service.
CITIZEN COMMENT
Anna Bernhard, 14241 59 Avenue South, indicated she would like to thank the Segale family for the
holiday decorations they provide to City Hall.
SPECIAL ISSUES
a. South Correctional Entity (SCORE) Interlocal Agreement.
Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee on
December 2, 2008. The committee members were unanimous in recommending approval.
The cities of Auburn, Federal Way, Des Moines, Renton, Burien, SeaTac and Tukwila (Member Cities)
recognize there is a public need for a new correctional facility to serve the south King County region and
to provide correctional services at a lower total cost to the member cities. The Council is being asked to
pass an ordinance authorizing the Mayor to enter into an interlocal agreement relating to the South
Correctional Entity (SCORE) facility and formation of the SCORE Public Development Authority.
Rhonda Berry, City Administrator, introduced Penny Bartley, Manager of Jail Services for the City of
Renton, who is taking the lead on this project. Ms. Bartley utilized a Powerpoint presentation to provide
an overview of this issue. Key points involved the following:
City of Tukwila Page 2 of 9
City Council Committee of the Whole Minutes December 8. 2008
Background
2000 King County terminated contracts with cities for use of King County jail
2002 JAG was created as an administrative group to coordinate cities' use of jails and look to
solving long -term jail needs
2002 35 cities entered into agreements with Yakima County Jail
2010 Yakima County Jail contract ends
2012 King County contract ends and cities must remove all misdemeanants from King County
Jails
2006 Cities hired Ricci Greene to develop options and a long -range plan for the cities
o Ricci Greene report indicates the 39 cities in King County will need 1,440 beds by 2026
o Of those 1,440 beds, 700+ will be needed in the South King County regions (in addition
to those currently available at the Kent and Renton jails)
Summary of Feasibility Study by DLR Group
Construction of 668 bed SCORE facility will cost $80,000,000
SCORE 2008 daily rate is $100 (includes debt service)
SCORE 2013 estimated daily rate is approximately 67% of the King
service)
Necessary Legislation
Ordinance to authorize creation of SCORE (all cities must adopt)
Interlocal Agreement for SCORE (all cities must adopt)
Public Development Authority (PDA) Ordinance (Renton only)
o Charter of the PDA
o Bylaws of the PDA
Development Costs
Development Cost $80,000,000
Bond Issue Cost $1,000,000
Capitalize Interest $8,660,000
Capitalize Startup $6,187,500
Total Cost $95,847,500
Tukwila's Share: 8% Ownership in facility $7,680,000
Tukwila's Share of debt service (annually) $551,504
King County Cities Jail Usage
Cities in King County used 966 jail beds in 2007
City of Seattle: 294 beds
Kent and Enumclaw jails: 160 beds
SCORE members: 340 beds
Remaining King County cities combined: 172 beds
o Other Potential Users:
Port of Seattle
Washington State Patrol
Department of Corrections
Snohomish County Cities
Funding /Financing Discussion
County rate (includes debt
Issue interim or permanent financing instrument mid -year 2009.
Use Bellevue property proceeds and additional cash contributions from member cities to cover
due diligence, design, permit, etc. costs in early 2009.
Each city commits to a fixed share of SCORE debt.
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City Council Committee of the Whole Minutes December 8. 2008
Revenue will not be considered until realized and will be used to offset cost in subsequent years.
This would require higher contributions in early year(s).
Timeline
2007 Agreement on concept and feasibility study
2008 Establishment of SCORE PDA, funding, siting, and facility design
2009 Design and General Construction /Construction Management Designation
o Financing, permitting, street vacation, environmental review
o Groundbreaking scheduled for September 1, 2009
2010 Construction
2011 Facility completion and training
Facility scheduled to open July 1, 2011
The Councilmembers asked clarifying questions regarding the presentation and acknowledged the long-
term cost savings involved with this plan and the need for expediency.
Councilmember Hernandez asked how revenues are distributed between the member cities. Ms. Bartley
explained that revenue will be used against maintenance and operation costs and what remains would be
divided based upon proportional usage.
Councilmember Quinn asked how much contingency is built into the $80,000,000 cost. Ms. Bartley
explained that construction escalation contingencies are built into it, with an additional contingency on top
of that. They feel comfortable with the estimates they have. Costs are spread proportionately based
upon ownership usage. Councilmember Quinn also inquired as to the number of infirmary beds. Ms.
Bartley responded that the facility is designed with a 29 -bed infirmary. It is anticipated the City will
contract out for medical services, as it seems to be the most economical way to do that, and it is but into
the daily rate.
Rhonda Berry, City Administrator, commented that one of the major factors is the City having control of
maintenance and operation costs, and looking at maximizing costs on all levels.
Mayor Haggerton thanked Penny Bartley for her work and stated he feels comfortable going forward,
since there are currently no other options available.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING
b. Tukwila Urban Center Access Project (Klickitat) Supplemental Agreement No. 2.
Councilmember Linder indicated this item was discussed at the Transportation Committee meeting on
November 25, 2008. The committee members were unanimous in recommending approval.
Staff is seeking Council approval to enter into Supplemental Agreement No. 2 with Macaulay
Associates for additional services relative to the Local Improvement District (LID) special benefits study
for the Tukwila Urban Center. This agreement will add $25,200 to the original contract and update the
appraisals of 300 properties in the urban center.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING.
c. Bid Award for Tukwila International Boulevard Phases II III.
Councilmember Linder indicated this item was discussed at the Transportation Committee meeting on
November 25, 2008. The committee members were unanimous in recommending approval.
This project will provide roadway improvements on Tukwila International Boulevard from S. 116 Street to
S. 138 Street. The project was advertised on October 9 and 16 2008, and ten bids were opened on
November 13, 2008. The low bid of $12,261,309.20 was from Gary Merlino Construction Company, who
has previously completed satisfactory work for the City. This contract includes work for Water District
125, Valley View Sewer District, Comcast, and Comcast LNS.
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City Council Committee of the Whole Minutes December 8. 2008
Jim Morrow, Public Works Director, provided a handout to the Council showing the wall panel options that
reflect the additive alternate item in the Tukwila International Boulevard Phase II and III bid award.
Mr. Morrow indicated the surface of the walls, without the concrete facing, is exposed H beams and
wooden railroad ties. If the City did not protect those surfaces, the walls, would start having maintenance
problems within five years. Another issue is if the untreated walls were tagged with graffiti, it would be
extremely difficult to remove the graffiti from the wooden ties. The addition of the rebar over wooden ties
and shot -crete (sprayed concrete) provide a protective coating for the walls with a lifespan of 20 years for
each wall. With proper preventative maintenance, the lifespan could be greater than 20 years.
Councilmember Griffin indicated in the Transportation Committee minutes of November 25, 2008
meeting, undergrounding utilities was a topic of discussion. It was the City's intention to have the utility
lines relocated underground during the Tukwila International Boulevard Phase II and III project. Ms. Griffin
asked staff for the status of this project.
Mr. Morrow indicated the City has been in communication with Sabey Corporation. They have taken the
lead on coordinating a meeting between Seattle City Light, the City of Tukwila, and Sabey Corporation.
Rhonda Berry, City Administrator, indicated time is of the essence in the talks with Seattle City Light.
There has been one preliminary meeting with Seattle City Light and staff, and City Administration is
working on expediting the process.
Mr. Morrow indicated if an agreement could be reached between all parties relating to the undergrounding
of the utilities, the agreement will be presented to full Council for consideration and approval.
Councilmember Linder indicated the City is fortunate to have Mike Hansen from the Sabey Corporation to
assist in the coordination of the meeting with Seattle City Light. His work on eliminating the overhead
lines on Tukwila International Boulevard is appreciated.
Mike Hansen, Sabey Corporation, 12201 Tukwila International Boulevard, provided a handout to the
Council of color photos depicting Tukwila International Boulevard without the overhead utility lines.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING.
d. Contract Extension for Commercial Development Solutions.
Councilmember Hernandez indicated this item was discussed at the Community Affairs and Parks
Committee meeting this evening, December 8, 2008. The committee members were unanimous in
recommending approval.
The contract with Commercial Development Solutions will expire December 31, 2008. The City entered
into the contract for project management for the Tukwila South project. The Council is being asked to
extend the contract to June 30, 2009.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING.
e. Impact Fee Ordinances for Fire and Parks.
Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee
meeting on December 2, 2008. The committee members were unanimous in recommending approval.
Councilmember Hernandez indicated this item was discussed at the Community Affairs and Parks
Committee meeting earlier this evening, December 8, 2008. Concerns of the committee included
possibly lowering the fees associated with the adoption of the ordinances. Ms. Hernandez indicated the
committee also requested a comparison of other cities' impact fee schedules along with the proposed fee
structure for Tukwila.
Councilmember Linder indicated it would be difficult to compare impact fee schedules of other cities with
Tukwila because the City would be comparing other cities' prior years' data with 2009 data. Ms. Linder
inquired what other fees are being considered in the event that impact fees are not implemented.
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City Council Committee of the Whole Minutes December 8. 2008
Lisa Verner, Project Manager, indicated the City would need to find funding if any of the proposed
projects are to be accomplished. As the funding goes, the City would need to use the General Fund to
finance the projects. The Real Estate Excise Tax funding is slowly decreasing and traditional sources are
not sure things. Other sources that could be considered include a B &O tax, a head tax, and other fees
that might be more onerous for businesses than the impact fees.
Council President Duffle stated he is in favor of the impact fees. He does feel, however, that the Council
needs to look at how to implement this project. He feels strongly that the impact fees are needed. He
informed Councilmembers a decision needs to be agreed upon tonight as to how to proceed.
Councilmember Robertson asked the Council to refer to questions one through four.
#11 Do you want to adopt Fire Impact Fees?
Councilmember Quinn: No comment
Councilmember Hougardy: Yes
Councilmember Robertson: Yes
Councilmember Griffin: Yes
Council President Duffle: Yes
Councilmember Linder: Yes
Councilmember Hernandez: Yes
#2) Is the proiect list acceptable?
Councilmember Hernandez: Yes
Councilmember Linder: Yes
Council President Duffle: Yes
Councilmember Robertson: Yes
Councilmember Griffin: Yes
Councilmember Hougardy: Yes
Councilmember Quinn: Yes
#3) Support the 90/10 split for fire:
Councilmember Hernandez: Yes
Councilmember Linder: Yes
Council President Duffie: Yes
Councilmember Robertson: Yes
Councilmember Griffin: Yes
Councilmember Hougardy: Stated she cannot move forward with the fees at this rate.
Councilmember Quinn: Yes, with caveat for further discussion.
#4) Does the Council aaree with the split between office. retail, residential. etc. for Fire?
Councilmember Linder requested additional clarification on the split. Ms. Verner explained the formula is
based on the growth projections and the actual fire calls for each of the categories.
Councilmember Griffin stated she would like an explanation regarding the difference in the fees
associated with retail and office.
Ms. Verner responded the numbers of calls are greater for office than for retail.
Shawn Hunstock, Finance Director, directed the Council to page 100 of the agenda packet regarding the
impact fee calculation for Fire and the breakdown of the fees. There is comparatively less cost allocated
to office due to less square footage, less growth, and smaller employment growth. Therefore, the cost is
spread over a much smaller base, which drives the fee higher.
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City Council Committee of the Whole Minutes December 8. 2008
Councilmember Quinn questioned the impact on retail and how the calculations were arrived at.
Ms. Verner explained the calculation is based on employees and residents, not visitors. Growth numbers
would need to be adjusted if the area to the south of Tukwila is annexed. Councilmember Quinn stated
that it was necessary that revenue be identified in order to support a reasonable level of service. He is in
agreement with split.
Councilmember Robertson indicated the project list drives the costs needed to fulfill the demand; again,
growth paying for growth. The possible annexation would increase the area for services. Building a fifth
fire station would be an enormous cost. Tukwila is unique in its geography, and is not comparable to a
place like Lynden.
Lisa Verner, Project Manager, clarified a statement about relocating Station 51. The information provided
excludes any annexation to the South of Tukwila.
Councilmember Quinn requested Ms. Verner explain the difference between Tukwila and other cities that
actually have a Fire District. What are the other types of fees the City does not charge, such as B &O tax
or a head tax?
Ms. Verner indicated the range of costs for new building projects in Tukwila are between 1°/0 and 4
which is a very low cost. The impact fees, as a percentage of cost, make it unlikely that the City would
lose development. The City does not have other sources of revenue, such as referenced taxes.
Mayor Haggerton indicated the citizens and businesses are used to a certain level of service and
reminded the Councilmembers that this is an important criterion to consider.
Councilmember Quinn asked if there was an opportunity to place an incentive program on developers.
Ms. Verner explained there is a way to offset impact fees. It would have to be identified as something the
City considers needed for new growth. In general, it is allowed under the Growth Management Act.
Councilmember Quinn stated most of the debate in the Community Affairs and Parks Committee was
based on the raw numbers and the usages of the Community Center. Is there hard, statistical data on the
parks' usage? It would be easier for the Council to support this if that data were available.
Ms. Verner indicated the Parks and Recreation Department could work on a data gathering plan for 2009.
The Council can pass the ordinances as they are, with the caveat that Parks and Recreation staff will
gather the hard data for reporting the next time the Council looks at amending the fees. If the Council
does not agree, the current data supports impact fees, they would be best not to pass the impact fee now.
Councilmember Robertson indicated Councilmember Quinn has a very interesting proposal for the
Council. If the Council would like to wait for the data gathering to adopt Parks impact fees, the Council
could separate the Fire and Parks ordinances, and the Council could pass the Fire Ordinance alone.
Ms. Verner indicated staff would need to pull the list of Parks projects from the Capital Improvement
Program if the impact fees are not forwarded to the next Regular Meeting.
Councilmember Hernandez clarified the consensus of the Council is that they would like to forward both
Fire and Parks Impact fees, with the caveat that the Parks and Recreation Department will gather the
hard data the Council is requesting.
Councilmember Hougardy indicated she supports adoption of impact fees now and concurs with
Councilmember Quinn's idea of taking a year to do the study. She suggested it might be possible to
lower percentage rates to get them more in line with what other cities are charging.
Ms. Verner indicated there are two options available to the Council: remove a project to lower the total
project cost or change the split to 70/30.
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City Council Committee of the Whole Minutes December 8. 2008
9:23 p.m. Council President Duffie declared a brief recess.
9:31 p.m. Council President Duffie reconvened the Committee of the Whole meeting.
Council President Duffie requested citizen comments regarding Impact Fees.
Sharon Mann, 4452 South 160 requested clarification regarding having the ability to waive an impact
fee. Can the fees be spread out between a small B &O tax and a small impact fee? The daytime affective
population is still not paying for the services being used.
Mike Hansen, Sabey Corporation, 12201 Tukwila International Blvd., stated it is important that the City do
a cost analysis on the impact to the businesses. Is it possible to create a blended rate across the three
categories?
Mark Segale, Segale Properties, P.O. Box 88028, provided a graph to the City prepared by C.B. Richard
Ellis detailing the growth rate for office space and associated costs. By implementing the fees that are
proposed, he feels the City is discouraging growth. In his view, it is an astronomical number as compared
to any other city. He encouraged the Council to review the percentage splits, the project list, and
clarification of the language of the ordinance pertaining to change of use scenarios.
Joe Desimone, 5609 SW Manning Street, urged the City to postpone making a recommendation on the
impact fees until hard numbers are available. The proposed fee is going to be very difficult to sell to
possible users.
Bruce Fletcher, Parks and Recreation Director, stated Tukwila residents have become accustomed to a
unique quality of life. The City's Parks benefit business owners, residents, the environment, and even
economics. If the City and developers work together, this could be a win -win situation for both sides. The
Parks Department has used measurable, hard data to calculate the percentage. However, he supports
hiring a consultant if that is something the City feels should be done.
Councilmember Robertson indicated the City needs a full year study. He requested Mr. Fletcher provide
a budgeted amount associated with the study to be available at the December 15, 2008 Regular Meeting.
Mr. Fletcher responded they would do their best to provide that cost in one week.
Councilmember Quinn proposed he would like to consider a motion that there is a process in place to
pass the proposed ordinance with an amendment to collect empirical data on parks' usage to be
presented in December 2009. He conveyed staff has come -up with a formula that would be used until the
City has a year's worth of hard data to review.
Councilmember Hernandez would like to see a study to confirm data that is considered accurate. She
suggested a 10 -month study to be reviewed by the Council in early November.
Does the Council want a Park impact fee?
Councilmember Hernandez: Yes
Council President Duffie: Yes
Councilmember Linder: Yes
Councilmember Griffin: She would like to consider the discussion.
Councilmember Hougardy: She would like more information.
Councilmember Quinn: Yes
80/20 Fees
Councilmember Robertson: Yes
Councilmember Griffin: Yes
Councilmember Hougardy: She would like more information.
Councilmember Quinn: Yes, with question for Ms. Verner regarding the fee splits. Can the splits be
changed? For example, if the City went to a 50/50 split, could the numbers be reviewed and then
changed? This is a clear example of growth paying for growth.
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City Council Committee of the Whole Minutes December 8. 2008
Ms. Verner answered in the affirmative.
Councilmember Hernandez would like to start out at the 70/30 split until the Council has the hard data to
review, and if the data supports the increased split, the Council could then adjust the split.
Councilmember Linder indicated during independent research, the real estate market uses the parks and
amenities as a selling point. Yes, the splits are fine as they are.
Council President Duffie: Yes
What is the split between residential and commercial land uses and is it appropriate?
Councilmember Linder: Is there a way to do a bulk rate for office, retail, and industrial? Ms. Verner
indicated the bulk rate is not very defensible according to the City Attorney. The splits are based on use
ratios and have been confirmed by existing park data. Councilmember Linder indicated the split is fine.
Councilmember Robertson: This ratio is part of the request for additional data.
Councilmember Hernandez: Would like to have the administration change the split to 70/30 and feels
that the office percentage needs closer inspection
Councilmember Robertson: Is in agreement with the current split and believes the study will provide an
opportunity for correction if necessary.
Councilmember Griffin: Is comfortable with it, but would like to see the data on the 70/30 split.
Councilmember Hougardy: Yes, and questions the timing of the projects.
Lisa Verner, Project Manager, stated the limiting factor is six years.
Councilmember Quinn: Yes. He likes the transparency of the information. He directed a question to
Derek Speck, Economic Development Administrator. Is a 10 -month study long enough to know if the
impact fees are deterring new tenants? Derek Speck indicated the 10 -month period should aid the
Council in defining what the impact to the City has been. The best data would come from the developers
directly. If the City cannot get the data from the private sector, the City would need to contact a
brokerage house to request a report, which will cost money.
Council President Duffie: Yes.
Councilmember Quinn thanked the staff for the problem statement. Another question would be what if we
did not have the parks or continue the parks. That would change the structure of the City. Is there an
incentive available to the developers?
Councilmember Griffin concurred and asked the Council to consider their vision for the City.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING.
f. An ordinance adopting the 2008 Fire Master Plan with the inclusion of the Mayor's response
specifying implementation; and establishing level -of- service goals for Fire services.
Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee on
November 18, 2008. The committee members were unanimous in recommending approval.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING.
g. Proposed Budget /Capital Improvement Program.
Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee on
November 18, 2008. The committee members were unanimous in recommending approval.
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City Council Committee of the Whole Minutes December 8. 2008
The Council is being asked to consider (1) An ordinance adopting the 2009 -2010 Biennial Budget, and (2)
A resolution adopting the 2009 -2014 Capital improvement Program.
COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING.
REPORTS
a. Mayor
Mayor Haggerton attended the Tukwila Government Affairs meeting on December 2, 2008 and the
Suburban Cities South Caucus Board of Directors meeting on December 3, 2008. On December 4, 2008,
he also attended a meeting in Olympia with State Senator Margarita Prentice, and the American Legion
Christmas party and tree lighting ceremony.
b. City Council
Councilmember Hernandez attended the Tukwila Government Affairs Committee meeting on December
2, 2008. She also attended the Equity and Diversity Commission meeting on December 4, 2008.
Councilmember Griffin attended the Equity and Diversity Commission meeting on December 4, 2008.
Councilmember Hougardy attended the Tukwila Government Affairs Committee meeting on
December 2, 2008.
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
The Council Analyst was not present.
ADJOURNMENT
10:49 p.m. COUNCIL PRESIDENT DUFFIE DECLARED THE COMMITTEE OF THE WHOLE MEETING
ADJOURNED.
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Minutes prepared by Lady of Letters, Inc.
Reviewed by Melissa Hart, Deputy City Clerk