Regional Fire Authority Annexation The Tukwila Experience Good evening, Mayor and Councilmembers. WCMA Conference – August 2016 David Cline, Tukwila City Administrator

The Big Takeaways After years of discussions, Tukwila chose to not annex to Kent Regional Fire Authority in 2016 There wasn’t a crisis, yet Finances didn’t pencil out – not a huge cost savings in the short term Council and Community didn’t see need for change, while the Fire Union did A Few Public Comments “We love OUR fire department, why would we change?” “We are willing to pay more to keep our OWN Fire Department” - 65 Firefighters, - 4 stations, - $11 million annual budget - 8 square miles

History Regionalization discussed for several years 2010 – Study of merging with City of SeaTac 2011-2016 – Kent Regional Fire Authority Several Workgroups and Study 2011 – First Steering Committee put on Hold as Kent RFA and SeaTac created contract model 2014 – Internal City Committee reviewed alternatives, recommended RFA as best option 2015 – Second Steering Committee, split recommendation to annex to Kent RFA 2016 – City Council decided not to annex to Kent RFA and focus on City Fire Department 2016 – City Council put public safety bond on Nov. 8 Election Replacing 3 stations and fund Fire apparatus and equipment Criminal Justice Center for Police and Courts

This was a general time frame presented by the 2014 Exploratory Committee.

 Lessons Learned Know why you changing model – Financial, Service, Leadership? Do the detailed analysis Financial First, include all costs – if it doesn’t pencil out, stop there, Operational, Indirect, Capital needs, Equipment replacement Be objective – Make sure it isn’t run by the fire department Clearly state what the City will do with its excess capacity – Use it or lose it Recognize different stakeholders – Fire Union, City, Council, Community Don’t underestimate the passion “We love OUR fire department” to “I can’t believe the City Council/Mayor didn’t do this” Financial – is there a deficit? Is it negatively impacting other City Services? Service – is response time worsening? Need to close a station? Leadership/Direction –Department working well? Strong leadership?

Fire Benefit Charge – Key Issue in moving to RFA Allows charge based on need – can shift costs to Commercial from Residential Can be up to 60% of operating costs Has to be approved by 60% every six years Can vary by geographic areas, business type  

Fire Benefit Charge – Easily Explained Initial imposition of FBC requires 60% voter approval (RCW 52.26.220) Renewing existing FBC requires 60 for RFAs%, renew every 6 years (RCW 52.26.220) The FBC takes the place of the 3rd 50 cent property tax levy (RCW 52.26.240) Cannot exceed 60% of the annual operating budget (RCW 52.26.220) Imposed on personal property and improvements to real property (RCW 52.26.180) FBC is added to property tax bills County charges a fee to collect the funds (currently 1%) Formula shall be reasonably proportioned to the measurable benefits to property (RCW 52.26.180) Any other method that reasonably apportions the benefit charges is acceptable. (RCW 52.26.180) Exceptions, limitations: Property owned by religious organizations (RCW 52.26.180) Property not assessed and subjected to ad valorem taxation under Title 84 (RCW 52.26.180) Property that is subject to a contract for services (RCW 52.26.180) Low income, seniors that qualify for exemptions under RCW 84.36.381 through 84.36.389 are exempt from a portion of the FBC. 25%, 50% or 75% exemption

Fire Benefit Charge – Explained, Take 2 Kent Regional Fire Authority - Tukwila Service Area Benefit Charge Formula: Square root of total square footage X 18 X Category Factor X Fire Flow Factor X Response Factor X Risk Factor X Applicable Discount = FBC Total square footage of structure(s) Category Factors: 400 - 1,799 1,800 - 2,699 2,700 - 3,599 3,600 - 3,999 4,000 - 4,999 5,000 - 7,999 8,000 - 9,999 10,000 - 14,999 15,000 - 19,999 20,000 - 29,999 30,000 - 49,999 50,000 - 99,999 100,000 - 139,999 140,000 - 199,999 200,000 - 299,999 300,000 - 399,999 400,000 - 499,000 500,000 - 599,999 600,000 - 699,000 700,000 - 999,999 1,000,000 - and > Residential 0.70   Mobile Homes Apartments 1.60 3.25 6.70 8.60 11.10 14.25 Commercial 1.10 1.30 1.40 1.50 2.05 3.05 3.35 3.50 3.75 4.00 4.15 4.25 Fire Flow Factor:* 0.4923064* Response Factor:** Residental 1.00 1.35 1.65 2.25 Manufactured Homes 1.18 1.75 2.65 4.10 4.30 4.40 4.50 Risk Factor:*** Light Hazard Ordinary Hazard - 1 Ordinary Hazard - 2 Extra Hazard - 1 Extra Hazard -2 Discounts: Automatic Fire Sprinklers 0.900 Manual Local Alarm 0.980 Manual Central Alarm 0.950 Automatic Local Alarm 0.970 Automatic Central Alarm 0.925 Agricultural 0.250 *Fire flow factor is estimated until final tax and property data is certified by the King County Assessor **Response factor is based upon the number of firefighters needed to deliver the required fireflow *** Risk factors apply to commercial property, are defined by the NFPA and are assigned by inspection performed by the Fire Authority.

Tukwila Moving Forward Keep our Fire Department – Ask Voters for Financial Support for Capital Hire new Permanent Fire Chief Continue Regional Efforts through South King County Training Consortium

Questions?