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HomeMy WebLinkAbout2009-04-13 Committee of the Whole MinutesCALL TO ORDER /PLEDGE OF ALLEGIANCE OFFICIALS CITY OFFICIALS Tukwila City Council Committee of the Whole Meeting City Hall Council Chambers April 13, 2009 7:00 P.M. MINUTES Council President Hernandez called the Tukwila City Council meeting to order at 7:06 p.m. Ms. Hernandez introduced Jennifer Higgins with Ruth Dykeman Youth and Family Services, who led the audience in the Pledge of Allegiance. Present were Joan Hernandez, Council President, Councilmembers Joe Duffle, Pam Linder, Dennis Robertson, Verna Griffin, Kathy Hougardy, De'Sean Quinn. Rhonda Berry, City Administrator; Shelley Kerslake, City Attorney; Jim Morrow, Public Works Director; Bruce Fletcher, Parks and Recreation Director; Jack Pace, Community Development Director; Derek Speck, Economic Development Administrator; Shawn Hunstock, Finance Director; Peggy McCarthy, Deputy Finance Director; Mike Villa, Assistant Police Chief; Evelyn Boykan, Human Services Manager; Stacy Hansen, Human Services Specialist; Lisa Verner, Project Manager; Kimberly Matej, Council Analyst; Christy O'Flaherty, City Clerk; Melissa Hart, Deputy City Clerk. SPECIAL PRESENTATIONS Jennifer Higgins, Substance Abuse Counselor, provided an update on services provided by Ruth Dykeman Youth and Family Services. She indicated the organization's mission statement is: 'Success and Self- Sufficiency for Children, Family and Community.' Ms. Higgins indicated community -based programs offered by Ruth Dykeman Children's Center provide help where people need it most: in homes, schools and in the Youth and Family Services Center. She currently provides services to Showalter Middle School and Foster High School. Services include drug and alcohol abuse prevention and treatment, crisis intervention and therapy. Goals are to improve the ability for youth to meet social, emotional and economic challenges by providing outcome based, innovative, and culturally- sensitive programs that build on the individual and family strengths. Ms. Higgins indicated 62 individual residents were served in 2008, 31 assessments and 20 outreach activities were conducted, and 320 hours of counseling services were provided to students and families in the Tukwila area. Councilmember Linder inquired if the services were also provided to the three Tukwila elementary schools. Ms. Higgins answered in the affirmative. The Councilmembers thanked Ms. Lang and Ms. Higgins for the services they provide to the Tukwila community. CITIZEN COMMENT There were no citizen comments. Tukwila City Council Committee of the Whole Minutes April 13, 2009 Page 2 of 11 SPECIAL ISSUES A. Tukwila South Project overview. Shelley Kerslake, City Attorney, and Lisa Verner, Project Manager, provided an overview of the Tukwila South Project. Ms. Kerslake explained they have reached an agreement regarding Tukwila South that is fully supported by the Mayor. After the presentation, notebooks will be distributed containing the development agreement with La Pianta and land use documents. The project will involve City annexation of 250 acres and development of a total of 500 acres of land near Sea -Tac Airport adjacent to 1 -5. The project is expected to provide 25,000 new jobs and 10 million square feet of occupied space. That capacity will make Tukwila South the region's fourth largest "non Central Business District." This project is one of only a few public private partnerships for Tukwila. The City has received over $18 million in state and federal grants towards the design and construction of Southcenter Parkway, which will improve circulation in and out of the urban center, while creating access to a new business and retail core area. La Pianta will also invest millions of dollars in project related infrastructure. This partnership's goal is to create an additional economic engine for the City and region. Benefits include: 1) increase the City's tax base 2) job creation from both the development's construction, and from new businesses moving in 3) diversification for the City's tax base 4) increased potential for additional City revenue through the addition of buildable and 5) synergistic partnership with the urban center to fuel redevelopment efforts The primary goal for this partnership is to minimize the City's financial risk and to: 1) find funding for this new area 2) ensure coverage for that funding if development did not proceed as quickly or profitably as expected 3) identify stable funding source for any City funds committed to the project 4) ensure that growth would pay for further growth 5) utilize grant funds to improve Southcenter Parkway This project has been in negotiations since 2004. The project's complexity is due to both its scale and its scope, so the partnership has worked to simplify the agreement as much as possible. The partnership has retained several experts to provide guidance on various project components: 1) Peter Moy for analysis of La Pianta's financial information 2) Tom Nesbitt for annexation consulting, including finance and policy issues 3) Hugh Spitzer for revenue guarantees The Development Agreement has two sections: City obligations and La Pianta obligations. City obligations include: 1) Finish Southcenter Parkway design, which is currently 90% complete. The City will use up to $300,000 in grant funds for that work. 2) Bid and construct Southcenter Parkway after the design is finished. 3) Tukwila has pledged $6 million in bonds towards the Southcenter Parkway project. 4) If bids are higher than expected, the Mayor has recommended the City pledge additional $2.25M toward this project. However, recent bids have been below expectations, so the City may not need to utilize this option. 5) The City will submit La Pianta's levee design to the Army Corps of Engineers. 6) The City will track revenue and expenditures related to this project's development. 7) The Mayor has recommended the City vacate Frager Road. 8) The Mayor has also recommended the City donate certain remnant parcels, which are described in more detail on the provided maps. Tukwila City Council Committee of the Whole Minutes April 13, 2009 Page 3 of 11 9) The Mayor has recommended the City vest some development regulations to La Pianta. The specific regulations to be vested will be covered in more detail later in the presentation. La Pianta's obligations include: 1) Annex to the City of Tukwila upon entering into this agreement. 2) Donate the land needed for Southcenter Parkway. 3) Fund the Puget Sound Energy and Highline water costs related to their project costs. 4) Provide storm drainage ponds for Southcenter Parkway. 5) Enter into a No Protest LID for potential future sewer capacity upgrades. 6) Donate easements for a bicycle /pedestrian trail system along the Green River. 7) Donate $500,000 towards a Green River pedestrian bridge. If Tukwila cannot raise the necessary remaining funds for completion of the bridge, that money would eventually go to the City, earmarked for other park improvements in the Tukwila South area. 8) Pay all impact fees at the rate when relevant permits are pulled. 9) Donate levee easements. 10) Donate up to three acres of land for a future fire station, for which the City has already developed siting criteria. Transfer would be conditioned upon the Frager Road vacation. 11) Guarantee of revenue needed to cover operation and maintenance expenses up to $12 million to ensure the City can pay for services even before revenues from that area come in. 12) Guarantee of revenue to cover debt service, if the City utilizes the additional construction bond. One of the City's first tasks for Mr. Nesbitt was to determine the expected servicing costs for police, fire, parks and public works for this annexed area, in comparison to projected income. His analysis generated various potential scenarios, including an analysis of costs and revenue under continued economic downturn. A graph in the notebook of materials outlines his findings. In general, the City was potentially facing a gap between costs and revenues, and the following have been identified as ways to fill that gap: 1) If the project revenue does not cover City service expenses, La Pianta will be invoiced for the shortage up to $12 million for the life of the agreement. 2) That obligation is secured by a $6 million letter of credit that can be drawn on by the City. Any dispute about use of that fund will be resolved after the City has received the money. 3) La Pianta's obligation is also secured by a First Deed of Trust on the Qwest Building, with an estimated value of $24 to $32 million. While not as liquid an asset as the $6 million LOC (letter of credit), it is a solid security device the City could foreclose upon if necessary. 4) If the City uses the $2.25M construction bond and the project revenue does not cover the City's debt service, La Pianta will be invoiced for that shortage as well. 5) That obligation is also secured by a letter of credit for the annual amount of the debt service. 6) The increased revenue from adding 250 acres to the City's tax roll will pay for the $6 million bond's debt service, which is considered a stable funding source. 7) Impact fees will fund growth. 8) Power and water utilities for the project, part of the Southcenter Parkway construction, will be secured by a letter of credit. The City asked Mr. Nesbitt to analyze the security of mitigating the City's risk. He generated a graph showing the described security measures will cover potential gaps between operations and maintenance, revenue and costs. Ms. Kerslake explained the project timeline is extremely aggressive because the City must secure a contract with the State by the end of June to ensure receipt of Community Economic Revitalization Board (CERB) grant money. All partnership members understand how aggressive that timeline is, so they have put together a series of study sessions. Information will be provided to the entire Council for the sake of expediency. Partner members hope the Council can vote on this package of proposals on June 1, 2009 to allow time for contract development with CERB. In addition to the development agreement, the Council will be asked to adopt nine other ordinances that provide the backbone for this project. Those ordinances will be provided in the information notebooks they will receive after the meeting. Ms. Verner explained which land use documents or policies will be changed as part of the project: 1) Add a Tukwila South Master Plan for the project area 2) Add a Tukwila South Overlay Zoning, listing the uses allowed in that area 3) Subdivision code changes, mostly to change and improve the binding site plan process Tukwila City Council Committee of the Whole Minutes April 13, 2009 Page 4 of 11 4) Make a Shoreline Master Plan map amendment 5) Apply a Sensitive Area Master Plan overlay to the site 6) Vacate some right -of -ways, including Frager Road, portions of Southcenter Parkway, and 57 Avenue South 7) Declare surplus property to be turned over to La Pianta 8) Finalize the annexation ordinance Ms. Kerslake introduced the project team members from La Pianta, Mark Segale and Jack McCullough. Mr. Segale indicated he was pleased to bring this project before the Council. He and the other team members are confident the team has addressed all the City's concerns, while ensuring the project will bring new economic opportunities to the City. He asked the Council to approve all the relevant aspects of the project and looks forward to it moving forward. Councilmember Duffie thanked all parties for working so hard to reach this point, and he hoped the project would move forward. Councilmember Linder was also very encouraged that the project has come so far and indicated the agreement sounds promising. She likes the topic -by -topic review method and also suggested the Council review the materials and determine the best approach prior to the next meeting. Councilmember Griffin indicated this project has been long awaited and agreed that topical discussion made sense. She acknowledged the timeline was aggressive and believes the Council will be able to meet that timeline. Councilmember Quinn noted the tight timeline and looks forward to jumping into this discussion with both feet. Council President Hernandez indicated the Council would give the project all the time necessary for the required discussions. She confirmed the Council is scheduled for four work sessions, two Regular Meetings and one Committee of the Whole. Rhonda Berry, City Administrator, conveyed a great deal of time, effort, work and compromise went into the document, and the result demonstrates the dedication of the entire project team toward bringing this project together. b. Storm water easement for property at South 112 Street and Tukwila International Boulevard. Councilmember Hougardy indicated this item was discussed at the Utilities Committee meeting on March 24, 2009. The committee members were unanimous in recommending approval. Jim Morrow, Public Works Director, indicated the City has identified 25 locations throughout the City where the public storm drainage system is routed through private parcels without a known easement. Drainage from South 112 Street and Tukwila International Boulevard discharge into a private failing storm drainage system that needs repair. The fair market value of the property is $35,000. The cost associated with the repair of the pipe is $70,000. The property owner, Carrossino Holdings, LLC, has agreed to line the existing pipe and has requested the City pay for half of this repair in exchange for an easement that clarifies ownership and maintenance responsibilities. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. c. General Fund contribution to the Equipment Rental Fund. Councilmember Linder indicated this item was discussed at the Finance and Safety Committee meeting on April 7, 2009. The committee members were unanimous in recommending approval. This item will involve removal of the General Fund contribution for equipment replacement to the Equipment Rental Fund for 2009. This would provide a savings to the City of $464,964. The Tukwila City Council Committee of the Whole Minutes April 13, 2009 Page 5 of 11 departmental contributions will be moved out of the departments and added back to Department 20 to prevent the funding from being spent. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. d. Community Schools Collaboration contract. Councilmember Griffin indicated this item was discussed at the Community Affairs and Parks Committee meeting on March 23, 2009. The committee members were unanimous in recommending approval. The Community Schools Collaboration (CSC) provides after school programming at each one of the five schools in Tukwila. The CSC program provides services in the areas of academic and program enrichment, family support, education and community linkages and health services support, including medical, dental and coordinated community health services. The contract for CSC is $260,000 for the 2009/2010 biennium. Contracts greater than $25,000 require Council approval. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. e. Design report consultant selection for the Walk and Roll Plan. Councilmember Quinn indicated this item was discussed at the Transportation Committee meeting on April 6, 2009. The committee members were unanimous in recommending approval. Councilmember Quinn indicated the Walk and Roll Plan focuses on improvements for non vehicle, localized travel within the City. The plan would attract new transit oriented development to commuter light -rail stations, support the region's business economy by helping employees get to work, and improve safety by reducing collisions between automobiles and pedestrians and bikes. It is also aimed at improving resident health by enabling greater pedestrian movement, while improving the environment by reducing the number of car trips and providing better access to City bike and pedestrian trails. Perteet, Inc. is the company selected for development of a design report in the amount of $60,357. The report will focus on the City's bicycle and priority sidewalk routes. The results of this report will provide conceptual design recommendations for each of those routes, along with cost estimates and project difficulty rankings. Jack Pace, Community Development Director, explained this is a joint project between Public Works and Community Development. They are looking at existing right -of -ways to determine which paths or sidewalk segments should take priority based on the challenges and existing conditions. He added that they are trying to position the City to leverage completed work with competitive grants in order to use less general funds for these projects. Councilmember Robertson indicated he supports the plan and is concerned with the cost of this program given the current economic conditions. He stated the idea has merit enough to at least explore the grant options and get more information before deciding how to proceed. Councilmember Linder asked about the discrepancy between the $110,000 budgeted for this item and the $60,000 cost of the report. Mr. Pace explained that staff had anticipated spending the higher figure, but the bids came back lower than expected. Shawn Hunstock, Finance Director, explained the balance of the budgeted amount would be used for other project related expenses. Council President Hernandez indicated the City has partially secured monies for this project and the study will narrow down the expected costs, both of which will help the City when the grant application is reviewed. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. f. Contract for Foster Golf Links restaurant. Tukwila City Council Committee of the Whole Minutes April 13, 2009 Page 6 of 11 Councilmember Griffin indicated this item was discussed at the Community Affairs and Parks Committee meeting on March 23, 2009. The committee members were unanimous in recommending approval. Bruce Fletcher, Parks and Recreation Director, explained that the Parks and Recreation Department published a request for qualifications for a new restaurant tenant at Foster Golf Links. Five qualified vendors expressed interest in opening the restaurant. A team was formed with representatives from the City's Parks and Recreation, Finance, and Economic Development Departments to select from among those five vendors. Interviews were conducted in February, and the team identified two vendors as top candidates: Norm's Eatery and Alehouse in Fremont, and Mick Kelley's Irish Restaurant in Burien. The team traveled to restaurants operated by each vendor. After those visits, Mr. Fletcher asked the team to put together pro and con statements, along with their recommendations. Based on those responses, a decision was made to select Norm's Eatery. The Mayor's office requested the team do more due diligence. It was decided the City would hire a real estate broker to qualify the top choice. Matt Vannini and Steve Habecker own and operate Norm's and have over 30 years experience in the food service industry, and the team felt confident their combined management skills would be a good fit for this venture. In addition, the team felt that having the building in operation again as a full service restaurant would be a good move for the City, given the upcoming golf season. Mr. Fletcher indicated Councilmember Robertson had requested current financial information on the tentative new tenants, and that information is not yet available. He then introduced Mr. Dan Foster. Mr. Foster is a commercial real estate broker with Pacific Real Estate Partners. He has been active with the south King County office, industrial and retail market since 1995. He typically works with landlords and property owners in the south King County area, helping them lease, sell and manage their commercial properties. When he was first asked to consult on this project, the top candidate had already been selected. The first thing he did was look at the proposed operation from the viewpoint of how it would affect the community, as well as whether the specific vendor was a strong candidate. His findings showed the restaurant would: 1) Serve as an amenity for the golf course and community 2) Provide a place for the City to host large groups and tournaments 3) Allow for banquet service for private or business functions, completely separate from the golfing industry 4) Boost the golf traffic on that course during most of the year He also considered what the restaurant should provide to the community: 1) A quality restaurant experience for local residents and City visitors 2) A menu with middle /upper middle selections, i.e. three full meal services and full appetizer menu, to provide for any type of event. 3) Liquor sales should provide solid sales but serve as a complement to the rest of the restaurant, not the main attraction or emphasis. 4) The ambience and dining experience should be the priority Mr. Foster also considered whether the vendor's proposed operation is a good bargain for the City. It would appear to be a good arrangement because: 1) The vendors will provide their own capital to build the business they envision. 2) If they are not operating the restaurant to community standards per the concessionaire's agreement, they can be terminated for just cause. 3) The proposed operation would pay a flat fee of 6% of gross receipts, up to a breakpoint of $2 million. Beyond that $2 million point, the fee would drop to 5 The previous tenants, even with mounting economic pressures and debt load, were able to produce revenues of $1.8 million. 4) The projected pro -forma seems realistic. He felt it was very logical to charge the restaurant a flat fee based on revenues. 5) It is logical to protect the condition of the kitchen equipment, so the vendor is encouraged to protect it from damage other than normal wear and tear. Mr. Foster indicated this agreement was a good deal for the City, offering a good potential return for the City while protecting City assets. Tukwila City Council Committee of the Whole Minutes April 13, 2009 Page 7 of 11 Councilmember Robertson inquired whether Norm's Eatery is just breaking even or is doing better than merely breaking even. Mr. Foster indicated his analysis indicated that not only was Norm's profitable, but it was profitable enough to pay down debt incurred from family loans for startup. Mr. Foster believed that Mr. Habecker has the expertise to make a profit on this venture, based on the financial performance of his current operation. Councilmember Robertson asked if Mr. Habecker would continue to operate Norm's. Mr. Foster answered in the affirmative. Councilmember Robertson expressed that Mr. Vannini's equity seemed to come from his share of the cash flow in his existing business. Mr. Foster replied that he had spoken with Mr. Vannini's lender, and the lender will provide up to $300,000 for the project at 5% interest should Mr. Vannini need it, which is a very favorable statement. Councilmember Robertson stated that Mr. Foster's statement about this project being well underwritten was in fact based on assets the City was providing, in the form of the restaurant and equipment, and not the vendors' financials. Mr. Foster replied the City is offering an excellent piece of real estate. The vendors are putting enough cash into the operation that current commercial real estate convention would predict a great deal of motivation for them to succeed. In addition, they have proven to be astute businessmen, and he believed they would not make that kind of investment without knowing they could make it work. Given the current economic climate together with the risks inherent in opening a restaurant, Mr. Quinn asked how Mr. Foster would rate the City's chances of getting a viable person for this restaurant. Mr. Foster indicated that restaurants certainly have a reputation for failing. However, the City is relatively insulated because the restaurant is a part of an established golf course with reasonable rates, which creates its own traffic. First, most outings on the golf course bring business to the restaurant. Secondly, it is in a good location and environment to provide lunch for the Tukwila business community. Councilmember Quinn asked Derek Speck, Economic Development Administrator, for comments. Mr. Speck said he supports Mr. Foster's analysis and added that many things depend on the specific conditions. Given this particular location and market conditions, he felt the existing candidate and menu proposal were the optimal choice. Councilmember Quinn asked if Mr. Habecker's history at Norm's would be a good predictor for how well he would do at this new venture. Mr. Speck replied that one way to evaluate a small company starting out is to review the people involved and how their skills match. In this instance, Mr. Habecker has experience not only operating a restaurant, but food and beverage service for golf courses as well as operating golf courses themselves. Mr. Vannini has experience running restaurants and other businesses as an entrepreneur. Based on the combined experience, Mr. Speck believes they are in the category of being very likely to be successful. Mr. Fletcher added this is not simply a new business opportunity for Mr. Habecker, but is the culmination of many of his aspirations. Councilmember Robertson referenced the lack of an LLC or other form of contract between the two potential partners. Mr. Fletcher indicated Mr. Habecker and Mr. Vannini are in the process of forming their LLC. Councilmember Robertson asked if there was any reason to be concerned with who else may end up being in the partnership. Mr. Fletcher said the City could require those two individuals to be the only individuals in the partnership and /or that any changes go through the City's change process. Councilmember Robertson then asked whether the concessionaire's agreement was close to the same terms offered to Gordy's. Mr. Fletcher indicated the agreement was similar to the previous tenant's agreement. He confirmed that given the $1.5 million gross per year, the City could expect approximately $7,500 a month in concession fees. Councilmember Robertson requested clarification to the statement (from the bottom of page 66), `the first month's concession fees will be waived.' He said he did not object to that, and he asked if any other fees Tukwila City Council Committee of the Whole Minutes April 13, 2009 Page 8 of 11 were waived anywhere else in the contract. Mr. Fletcher replied that was the only fee to be waived. He also confirmed the City Attorney had reviewed the agreement. Councilmember Robertson commented that the $15,000 security deposit seemed low, since it has been six months since Gordy's failed, which represents $45,000 in lost revenue for the City. He inquired why the security deposit is not equal to that six -month amount. Mr. Fletcher indicated this was the only vendor that proposed nearly $200,000 of capital improvements. The City proposed a higher security deposit and the current vendor would have liked a lower security deposit, but the negotiations brought them to a two month amount, which is one of the standard amounts in the industry. If the partnership were not going to invest in capital improvements, the security deposit would be at a higher amount. Dan Foster, Pacific Real Estate Partners, added the deposit was structured to reflect standard industry procedures, which is the first and last month's expected rent or fee amount. Councilmember Robertson replied that his concern was that investment in the facility was fine, but it did not translate into income for the City. However, if the nearly $200,000 is how they will provide their investment, he wants to ensure the contract would be null and void if they failed to make that contract. Mr. Fletcher indicated the City and Mr. Habecker and Mr. Vannini would not have a contract without that investment. Councilmember Robertson suggested that staff add text to the section on Capital Improvements to indicate not only what improvements are to be made, but also a timeline on the improvements. Councilmember Robertson then inquired about security issues. Given the previous experience at that restaurant, he would like to see some explicit language such that the City would review and approve security management, particularly for special events. Mr. Fletcher indicated this restaurant will not be open late and will not try to attract drinking crowds like the previous vendor. Staff can provide suggested changes to the City Attorney about security, but the vendor has much different goals for this restaurant than the previous vendor. Councilmember Quinn added it is the Council's responsibility to ensure contracts are beneficial to the City. Rhonda Berry, City Administrator, indicated the team has already had several conversations with the vendor to convey that while the City does not instruct companies on how to conduct business, this is a unique circumstance for which the City has a very vested interest. The team also suggested the vendors work with the City's Police Department and other agencies to ensure a secure operation. Councilmember Robertson inquired whether the City might need to add language to the agreement indicating that breaking the terms of the agreement would result in nullifying the contract. Mr. Fletcher indicated they could have the attorney review suggested changes, but he noted that any deviation from the contract would constitute breaking the contract and the contract already has a termination section. Councilmember Robertson suggested the City should be allowed to request a financial audit, while the current contract said no annual report shall be required. Mr. Fletcher indicated he would work with the Finance Director on that issue. Councilmember Griffin indicated those records are available online. If any question came up, staff can reference the online report without having to make it available via the contract. Councilmember Robertson indicated he is not concerned with individual reports, rather with the ability to request an audit if deemed necessary. Mr. Fletcher indicated the contract already stipulates they can review financial records at any time, but he would check to see if additional clarifying language is needed. Councilmember Robertson asked Shawn Hunstock, Finance Director, how the City could ensure the $15,000 is sufficient to guard against the vendors' possible failure. Mr. Hunstock replied that the capital improvements could not easily be sold should the vendor attempt to break the contract. In the absence of a personal guarantee, having six months rent in advance would certainly strengthen the City's position. However, Mr. Vannini has indicated the whole of his cash flow from his family's business is pledged to this venture. Tukwila City Council Committee of the Whole Minutes April 13, 2009 Page 9 of 11 Councilmember Quinn inquired whether requiring that extra rent amount would change the terms of the contract, and asked how likely it was the vendors would agree to the change. Mr. Hunstock said a deposit of that amount would not be consistent with normal commercial leases. However, they are not dealing with a normal commercial lease. Dan Foster, Pacific Real Estate Partners, indicated none of the five vendors who originally applied had offered to put in as much as Mr. Vannini has agreed to put in. Property ownership entails risk. If the City insists on a six -month deposit, other operators would turn the City down. Councilmember Quinn asked whether the six -month deposit goal was included in the original terms when the City first advertised or if that was introduced later. Mr. Fletcher stated that Mr. Hunstock originally requested a higher deposit, but the market would not bear that amount and, therefore staff rescinded that condition. Councilmember Quinn indicated that if the Council insisted on six months worth of deposit to recover the lost revenue, the City could very well be looking at another six months of lost revenue, in contrast to having a vendor who is ready to go and get revenue coming in sooner. Councilmember Linder inquired whether there is consensus to change the contract terms at such a late hour. Rhonda Berry, City Administrator, added that the City proposed the six months deposit much earlier in the negotiation process and was told it was unusual. The vendor did not accept the proposition and did not counter. No other vendors were aware of the six -month deposit because it was only instituted after learning of the individual vendors financial conditions. Councilmember Linder indicated she is comfortable with the contract as -is. Councilmember Hougardy requested clarification that the City has already made the six -month proposition and it was turned down. Mr. Fletcher explained the City had originally proposed a $20,000 deposit and the vendor had come back with six -month rent abatement, a capital improvement investment, and zero deposit. Mr. Fletcher indicated that proposal would not work; staff countered with one month of free rent and the security deposit of $15,000, which the vendor accepted. Councilmember Hougardy said she agrees with Councilmember Linder that it is too late in the process to change such a basic lease term, and she supports adoption of the contract as -is. Councilmember Duffie is satisfied with the terms of the agreement, and he believes they should take the chance to see if this venture will work. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. 9:56 p.m. Council President Hernandez declared a brief recess. 10:05 p.m. Council President Hernandez reconvened the Committee of the Whole Meeting. g. Contracts for Animal Control Services. Councilmember Linder indicated this item was discussed at the Finance and Safety Committee meeting on April 7, 2009. The committee members were unanimous in recommending approval. Currently, King County Animal Control and the City have an interlocal agreement that calls for 12 hours of supplemental animal control services per week for $38,000 a year. An amendment to the interlocal agreement will provide one full -time officer within SeaTac and Tukwila, dedicating 20 hours of services per week to each City. The Council is being asked to authorize the Mayor to sign an interlocal agreement with King County and an interlocal agreement with the City of SeaTac for enhanced animal control services. Tukwila City Council Committee of the Whole Minutes April 13, 2009 Page 10 of 11 Councilmember Robertson indicated this would be a good investment since they would effectively get $120,000 worth of service from the $60,000 investment in better services. He also inquired about how the laws vary between King County Animal Control and the City. Mike Villa, Assistant Police Chief, indicated the interpretation of the regulations is at the discretion of the animal control officer in any given situation, but the guidance generally comes from King County Animal Control and the City's Police Department. Councilmember Quinn inquired what the Council thinks of paying for a service the City has not yet seen. Councilmember Hougardy inquired as to whom the animal control officers reported to prior to the interlocal agreement. Assistant Chief Villa indicated they answered to King County. He also explained the previous contract called for 12 hours a week of animal control services, but it did not specify having a dedicated animal control officer. Councilmember Robertson was in favor of the enhanced service, because the public has not been satisfied with their current level of service or public safety regarding animal control. Councilmember Quinn inquired if this enhanced service might compete with other police services, due to the budget crisis. If it comes down to choosing one or the other, he would rather have the City supporting public safety rather than animal control. Assistant Chief Villa thanked Councilmember Quinn for his concerns because this exact issue may come up in the future and they may need to make those decisions. Rhonda Berry, City Administrator, indicated that several Councilmembers have expressed some concern about the allocation of available funds if this enhanced service is approved and the enhanced service works for the City. She is not sure how to measure whether or not the enhanced service worked, because the Mayor's Office is not hearing complaints that something needs to be fixed in terms of animal control. Councilmember Robertson said one problem might be that City residents feel there is no animal control so they do not call. Councilmember Duffie said one way to measure success would be to be able to reach animal control when they are needed. He has tried to call and never actually reached them. Assistant Chief Villa replied that if the contract is signed, the enhanced hours would probably fall between Wednesday and Saturday. If someone calls while the person is on duty, they would get a response. However, if someone calls when that person is not on duty, or at night, it would go through King County Animal Control. Councilmember Quinn said that given the City's budget issues, they have to look at the priorities for what services they can offer. Ms. Berry added that King County prioritizes animal control issues, such that a menacing dog in Kent would be a higher priority than an unleashed dog in Tukwila. Council President Hernandez asked whether the City would be credited if an animal control officer were called away due to a higher priority emergency in another area. Assistant Chief Villa confirmed the hours would be credited back to the affected City. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. REPORTS a. Mayor The Mayor was not present. Tukwila City Council Committee of the Whole Minutes April 13, 2009 Page 11 of 11 b. Citv Council Due to the lateness of the hour Council dispensed with reports. c. Staff Rhonda Berry, City Administrator, indicated the neighborhood spring clean -up dump pass program has been cancelled for 2009. d. City Attorney The City Attorney's presence is not required at Committee of the Whole meetings. e. Intergovernmental There was no report. MISCELLANEOUS Council President Hernandez indicated she has received two requests for Joint Meetings with the Tukwila School District and the City of SeaTac. Council discussion concluded with consensus to have Council President Hernandez schedule the meetings and provide the date to the Council. Council President Hernandez requested an alternate to attend the Suburban Cities meeting Wednesday, April 15, 2009. Councilmember Hougardy indicated she would attend the meeting. ADJOURNMENT 10:47 p.m. COUNCIL PRESIDENT HERNANDEZ DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED. Joan Hernandez, Council President Minutes prepared by Lady of Letters, Inc. Reviewed by Melissa Hart, Deputy City Clerk