Parks, Public Utilities & Technology Committee 8/13/2025

So, good afternoon, everyone.

The August 13, 2025 meeting of the Parks Public Utilities and Technology Committee will come to order, also known as PUT.

It is 2-0-1.

I am Joy Hollingsworth, Chair of the Committee.

Clerk, will you please call the roll?

Councilmember Kettle.

Here.

Councilmember Rivera.

Councilmember Strauss.

Present.

Council President Nelson.

Chair Hollingsworth.

Here.

Chair, there are three Councilmembers present.

For the record, Council President Nelson and Councilmember Rivera are excused.

Today is the last committee meeting before recess.

We have a packed, packed, packed, packed, packed agenda to discuss one of the pieces of important legislation, and I'm hoping to pass that before recess.

And we're gonna hear from Parks and Recreation, Seattle Public Utilities, so we're gonna go ahead and get started, and we will now consider the agenda, and I'm moving to adopt the agenda.

Is there a second?

Second.

Awesome.

If there's no objection, the agenda will be adopted to consider that there are three as the first items, no, excuse me, to consider item three as the first item on today's agenda.

Hearing no objection, the agenda is going to be amended with item three to be considered first.

Thank you colleagues for allowing us to navigate that.

Now, if there's no objection, the agenda is gonna be amended and it will be adopted.

Hearing no objection, the agenda as amended is adopted.

With that, we're gonna jump into the hybrid public comment period.

Public comments should be related to items on today's agenda and be within the purview of committee.

Clerk, how many speakers do we have signed up today?

We currently have two in-person speakers signed up and there is one remote speaker.

Awesome.

Okay.

I will read the instructions to the public comment.

Public comment period will be moderated in the following manner.

Speakers will be called in the order of which they register on the council's website and the signup sheet available in council chambers at the front.

If you have not registered to speak, but would like to, you can sign up before the end of the public comment period or on the council's website.

The link is listed on today's agenda or signing up On the sheet in front of us.

When speaking, please begin by sending your name and the item that you're addressing on the agenda.

Speakers will hear a chime at 10 seconds, are left allotted in the time.

If speakers do not end their comments at the end of the allotted time, unfortunately, we have to mute your microphone.

The public comment period is now open and we'll begin with the first speaker on the list.

Will you please call the first speaker?

Clerk.

The first speaker for in-person public comment is Tobias Coughlin Bogue followed by Alex Zimmerman.

Afternoon, yeah.

You can do any mic.

You can do the middle or the side.

Hi, I'm Tobias Coughlin-Bogue.

I'm speaking about CB 121057. Some of you may know me as a journalist who covers council.

I'm not here as a journalist today.

I'm here as a skateboarder and a citizen to speak in support of the final design for the Westlake Park Improvement Project that is in front of you today.

Skateboarders don't always have the best interactions with city government, but when we showed up at a public comment meeting to talk to Parks, the Parks Foundation, and their contractors on this project, we were met with open arms.

They listened to us intently about the history and the cultural significance of skateboarding in Westlake Park, They were eager to hear our ideas about how to preserve and incorporate skateboarding in Westlake Park, and they came up with a design that I think really reflects that.

It has everything we ask for and more.

It promotes pedestrian safety, and it just really represents the best of a public engagement process.

I can't speak for the entire skate community, but just throwing my two cents in, please vote yes.

Do pass.

Thank you for your time.

Thank you, Tobias, and nice t-shirt.

That's pretty cool.

Mr. Zimmerman, you are next.

Thank you very much.

A personal invitation, beautiful woman, is very important.

Oh, thank you for that comment.

No problem.

You can say it louder if you want.

Thank you.

Yeah, I'm ready.

You can open.

Yeah, my name Alex Zimmerman, and I want to speak about agenda number eight or nine, about reappointment.

Yeah, it makes me totally don't understand why you're doing this.

Why you reappointment people?

You know what it means?

What is shows a system not working?

For my understanding, Seattle, 700,000 slaves, sorry, or cockroaches, sorry, yeah.

For last two years talking, they once see fresh faces.

Two years ago talking, last this year talking, one fresh faces in government.

Why reappointment same crook, what is destroy us life for last 30 years?

Can you explain to me, there's a point of reappointment, you know what is mean, same people.

I speak right now to the 700,000.

Idiot who live in the city.

Clean this chamber totally.

It's for 20 years, I told you.

We need fresh faces every election, every time that is possible.

And I give you classic example.

We have very smart council, Moore, you know what it means, in District 5. So why are you doing this?

You reappoint somebody who mentally sick, so pure psychopath, It's a nightmare.

Council who for four years never saw people faces.

For a year, she's a psychopath in District 5. You know what this mean?

People speak and she never show faces.

For four years.

Pause the time.

One second, Mr. Zimmerman.

Council Member Strauss.

Thank you, Chair.

Point of order.

The speaker is not speaking to an item on today's agenda and demeaning the position of a fellow council member.

Thank you, Councilmember Strauss.

This is your first warning, Mr. Zimmerman, that you cannot direct your comments at a council member, but the items on the agenda.

You told me not use name right now.

You cannot use your council.

Why are you talking?

You are a real Nazi pig.

You are totally out of control.

Stupid, idiotic, lunatic, Nazi pig.

That's exactly who you are.

I don't mention name.

You told me not mention name because it's your law.

No problem.

I don't mention name.

You took my time.

Keep the time going.

No one's cutting you.

This is your public comment.

You're going.

Thank you very much.

Why are you doing this?

You told me no name.

No name, no problemo.

I can talking about District 5. I can talking about District 3. I can talking about District 2. Viva Trump.

Viva new American Revolution.

Thank you.

Thank you, Mr. Zimmerman.

For the record, that was Mr. Zimmerman's warning regarding keeping his comments to the agenda.

Just for the record, thank you, Council Member Strauss.

Online commenters.

We will now move to the remote public comment.

Once your name is called, please press star six to unmute.

We have one remote speaker and that's David Haynes.

Hi, thank you, David Haynes.

Remember when you could get to Golden Gardens with the bus number 44 and then the bus union realized that they could not rely on a cafe to be open?

And they literally cut off the route that denied you going to Golden Gardens?

And if you would just put a bus stop at the closest part of where they turn around, it would like really enhance the mental health of people living in Ballard that want to get to Golden Gardens who had their bikes stolen and don't have a car.

That said, it would be great if the Kite LLC could actually utilize some of the interior space if they opened up early for people to chill out and catch a view without the dust from the sand kicking up.

And separately, one of the huge problems in America's residential rental areas is the amount of trash pickup and how convenient it is for the road rage of waste management to come into the neighborhood at 530 a.m.

And then start banging and clanging outside people's residential units.

And it seems like the government acts like they're doing you a favor by forcing developers to always put a service road in between the buildings instead of having more robust build-outs and more courtyard space that's more graceful for pedestrian-centric, resident-friendly neighborhoods.

Instead, we got trash trucks trying to get into every nook and cranny in between all these godforsaken buildings.

And thanks to the diverse array of trash separations, you get six days a week of road rage trash pickup all throughout each day in your neighborhood.

And it's a living hell.

And, you know, I think you really need to address it.

Because it is one of the most prolific negative impacts on the quality of living in Seattle.

And why people like had their mental health derailed when they were having to work from home because they live in all this dilapidated inflated slum with a banging and clanging to shake in your building.

It's so pathetic.

Like Seattle slum.

Thank you, Mr. Haynes.

Public comment is now closed, and we're going to be moving on to our items of business.

Clerk, will you please read item number three into the agenda?

Agenda item three is Council Bill 121057, an ordinance relating to Seattle Parks and Recreation authorizing the superintendent to accept for and on behalf of the city certain donated improvements from the Seattle Parks Foundation for Westlake Park for briefing, discussion, and possible vote.

Awesome, thank you Parks Department for coming.

Looking forward to this presentation and to the public commenters, Tobias, who adamant support of Westlake Park.

Thank you so much, Maya.

Yeah, you should.

Green light.

Green light.

Maybe the other.

Yeah, there you go.

Go ahead and introduce yourself for the record and you can jump right in.

Yes, thank you so much.

Thank you, Chair Hollingsworth, and good afternoon.

Committee members, my name's A.P.

Diaz.

I'm the Superintendent of Seattle Parks and Recreation.

We are here today to ask you to consider and, hope, recommend three pieces of legislation today to enhance our park system and ensure our parks are welcoming and safe for all users.

The first piece of legislation before you now relates to the Westlake Park, which we call the heart of downtown.

Westlake Park is the gateway to Seattle's downtown and a vital link to the city's most iconic destinations.

As an important transit hub, the park serves downtown workers, residents, and tourists, With connections to the Seattle Center via the monorail, the Summit Convention Center, Pike Place Market, and the new Seattle waterfront.

The park is an important neighborhood asset for downtown residents, the center of downtown retail core, and often tourist introduction to our city.

In these roles, Westlake Park will be a key component of Seattle's participation as a host city for the upcoming The Westlake Park Improvement Project being led by the Seattle Parks in partnership with the Seattle Parks Foundation will make much needed improvements to the park so that in the short term, Westlake will be ready.

For the estimated 750,000 visitors that are coming for the FIFA games and in the long term successfully serve the ongoing needs of the city while setting the stage for future improvements plans for Westlake District.

Now I will turn it over to Deputy Superintendent Andy Schaeffer and our project manager Ben Hansiuk to give you a presentation.

Thank you very much.

I also want to introduce Beth Purcell from the Seattle Parks Foundation.

Seattle Parks Foundation has been a fabulous partner in this endeavor and in all of our work.

Hang tight, Andy.

You're going to take support.

Oh, sorry.

We wouldn't mind just listening to you, though, talk, Andy.

Thank you.

And you've also got Ben at the table.

Ben is very famous in Seattle.

Ben Henziak, Project Manager, who's fabulous.

The purpose of today's legislation is to authorize the Superintendent of Parks and Recreation to accept improvements to Westlake Park as a donation from the Seattle Parks Foundation.

I want to go through the project goals quickly.

First and foremost, enhance accessibility, address safety and security needs that also greatly enhance accessibility, and address aging infrastructure, aging infrastructure being the fountain and arch above the stage, as well as renovating the electrical system This really sets the stage for future improvements in the Westlake District.

This is also a critical part of the mayor's downtown activation plan.

The agreement between Seattle Parks and Recreation and Seattle Parks Foundation is very similar to other project agreements.

Seattle Parks Foundation will be granted use of Westlake Park during project construction.

The Parks Foundation will execute the baseline scope and transfer the completed improvements to the city.

The project will be completed in accordance with city standards, has been reviewed by Seattle Parks and associated departments, and SBR is providing fixed funding for the project.

The project is within scope, schedule, and budget.

And Parks Foundation may pursue non-SPR funds and is going to be augmenting the budget with those funds.

The baseline scope, as I mentioned, includes removal of the founding stage.

Renovation of the founding stage to make them code compliant really detracts from their original intent.

This will also open the site up and make it more welcoming to the public and provide space for greenery, vegetation, which was Noted during the public outreach process.

Also included are much needed electrical improvements.

Currently the electrical is in a vault below ground, which has really affected the below ground vault.

It has a lot of water in it.

It has really affected the efficiency of that electrical.

Also much needed is paving restoration.

We're going to scrub the entire plaza of trip hazards.

Vehicle crash protection, vehicle ramming mitigation is also important.

We saw a vehicle run through the Jefferson Park Clubhouse a couple months ago, and it's going to be important to protect our downtown parks.

And then, as I mentioned before, insulation of planting areas for a total project cost of $4.8 million.

In this diagram, you see those improvements, mainly focused on the north end.

The vehicle mitigation improvements extend along Fourth Avenue, but you can see the fountain replaced by those raised planters.

The stage reduced to the first tier and an access ramp to that first tier so that it's ADA accessible.

The stage remaining to protect and preserve First Amendment rights and provide a setting for that.

The planters include an immersive experience with walls that also protect the vegetation and augment maintenance.

Public involvement was extensive, as you heard in the public comment from our skateboard stakeholders, and the conversations were just fabulous.

And it took a lot of effort to narrow the scope.

There's a lot of opportunity there, and we look forward to the bigger vision unfolding in future years.

The participants in the public engagement process included businesses, a lot of residents as downtown is becoming a residential hub and consideration for this space as a neighborhood park too.

Property managers, downtown community council, service providers, and so on.

Downtown Seattle Association has been involved in this project from the get-go, Sound Transit, Amazon, of course, the Kraken, Friends of the Waterfront, and so forth.

Project schedule, this started in July of 24. The foundation is going to break ground in September.

With construction, it will be complete well in time for the FIFA World Cup games in 2026. Likely it will be fully complete by April, so super expedited schedule.

And again, really appreciate the foundation and the partnerships they've developed with project management firms and construction firms.

Any questions?

Thank you, Andy, and thank you, team, for this great presentation.

We know a lot of time, love, and energy went into this project.

I will defer to Councilmember Kettle, who's in his district, and I know he has a lot to say.

Councilmember Kettle.

I think I've been set up there a little bit.

Thank you, Chair Hollingsworth.

Thank you, Superintendent Diaz, Mr. Sheffer, and team.

Really appreciate having Seattle Parks Foundation here.

We've been working on various downtown to include Westlake, but also Portal Park and some others.

And, of course, we have central staff here, too.

Thanks, Karina.

There's a number of pieces here.

What I wanted to speak to, so I don't really, let me just note a few things.

One is on the outreach.

I really appreciate the outreach that was done.

I love, love the fact that Downtown Community Council is on this list.

We did a lot of work to stand up the Downtown Community Council, to give a voice to the downtown residents.

You know, not the greater downtown, downtown.

So not CID, Belltown, South Lake Union, Uptown, but for those folks.

And I think this is really important.

So I think this is a step forward.

But I also appreciate having Belltown, which goes back to Portal Park and so forth, having those representatives there.

And so I just wanted to say thank you for that outreach, because it's really important to give the voice to, and I'm looking to build that up, and again, like, I want to get rid of commercial core, that term, because we have, you know, capital D downtown, and these voices need to be heard, so thank you.

And I recognize all the others, too.

In fact, the picture, I can pretty much recognize everybody that's in that photo, so I can see that you've had some good outreach.

And it also highlights, too, because there's one of the things that I say on a regular basis, I've said this with Portal Park, one of the things that makes Seattle unique compared to other cities, in addition to having two mountain ranges in the sea, is our native community and how it plays in with our city as opposed to other cities around the country, particularly East Coast.

But then also the evergreen trees, which makes us unique.

And so thank you, because I can see in the picture of the outreach members of the community represented.

But also on slide seven, the evergreen tree.

We need to be highlighting this.

It doesn't have to be everywhere, but this is what makes us different.

When people come to Seattle and they say, hey, the trees are taller, I won't disparage any other cities.

You go to their cities, the trees are short.

There's a lot of brown.

But we need to do this, particularly from a year-round perspective.

And that is what makes us unique.

And that makes us different, that really invites people to come back or tell their friends to come.

You know, and the like.

And so I really appreciate that piece as well.

And bringing in this park feel to this location with the, you know, the greenery that you do have is really important.

And then, obviously, as Chair of Public Safety, I don't really want to go too much into it, but I appreciate those aspects of it as well in terms of mitigating any potential public safety challenges that we may face.

And, of course, from a good governance point of view, It's kind of like when we have SDOT here, you know, the complete streets piece, you know, having the idea of taking care of the utilities and the like, because we don't take this is what we're doing with South Lake Union Park, for example.

Another, you know, park down greater downtown park that we're working also with some Parks Foundation support.

It's really important that we do that.

It's not the bright, shiny thing, but in terms of long-term, it really enables.

I was just down for the Northwest ships getting a tour and all that, and you could see what they're looking to do, but how important those utility pieces are to them, the greater Southlake Union Park, but also here with this example as well.

I just wanted to note those points because I think they're important to emphasize.

And I really appreciate the partnership that we're doing with the Seattle Parks Foundation on this.

And key is, time's flying fast, is maintaining the schedule.

So I'll ask one question.

Are you confident about maintaining the schedule?

Because once FIFA World Cup comes here and our 250th, that's going to come quick.

And there's a lot of other activity going on.

By the way, as a shout out, I was just at the Seattle Arts Museum, and they're doing some great work.

They're going to be happening between now and FIFA.

It's actually going to be done by May.

It should be.

So there's going to be a lot of things happening.

There's going to be that mad dash to the finish line.

So my question is, are you going to be able to maintain the schedule

The iron triangle of scope, schedule, and budget, and we keep it locked in.

One of the benefits of working with the Seattle Parks Foundation is they've already got a contractor on board similar to a GCCM delivery method, so they're value engineering as they go forward in order to maintain that construction start date.

Parks is doing many things to support the World Cup, but the city as well as many city partners, some are here today.

But this is one of our highest priorities because it's something directly under our control with the partnerships that we have.

But yes, we are committed.

We've been working for a long time to be able to deliver this project by the World Cup.

Thank you.

And just to close, going back to my point about what makes us unique, you know, like with the native communities, as your question slide, I do appreciate, you know, showing the Coast Salish inspired, you know, the weaving pattern.

It's something to remind people that it's not just happened, that there's some thought behind it.

So thank you for including that.

Chair.

Thank you, Council Member Kettle.

And I apologize, Karina, I didn't mean to skip over you.

Can you give us your assessment or have any thoughts from central staff?

I don't have any additional assessments.

The presentation laid out all of the details.

Awesome.

Thank you so much.

Councilmember Strauss?

Thank you, Chair.

I'm going to hold my questions today because we spent maybe 45 minutes together earlier this week, which is why I know that Ben is famous in many circles in Seattle.

But just to say this is a great example of a public-private partnership.

It's a great example of how we can move quickly, diligently, and do so with some flexibility and certainty.

So with all of those amazing words, thank you for keeping this going.

I'd love to vote on this today.

Awesome, great.

Thank you, Council Member Strauss.

I think that is the vibe of all of us up here.

I appreciate that.

So thank you all for this discussion.

And I'm gonna move that the item, oops, sorry.

I'm gonna move that the committee recommend passage of Council Bill 121057. Is there a second?

Second.

It's been moved and second to recommend the passage of the bill.

Are there any final comments?

Seeing and hearing none.

Clerk, will you please call the roll?

Council Member Kettle.

Aye.

Councilmember Strauss.

Aye.

Chair Hollingsworth.

Yes.

Three in favor, none opposed.

Motion carries.

Committee recommendation that the bill pass will be sent to Tuesday, September 2nd, 2025 City Council meeting.

Thank you all.

I think you all are on the second.

You all are here for the next agenda item as well.

Some parks folks.

Clerk, will you please read item one into the agenda?

We're hopping around.

We had three, now we're one, and then we'll do two.

Go ahead.

Agenda item one is Council Bill 121036, an ordinance relating to Seattle Parks and Recreation authorizing the superintendent to execute a concession agreement granting the Kite Cafe LLC the right to exclusive use and occupancy of the Golden Gardens concessions premises for briefing discussion and possible vote.

Awesome.

Thank you.

And thank you to the first parks group.

Now we have second part two.

So thank you.

Thank you so much.

Good afternoon again, council members and President Hollingsworth.

Today, our second piece of legislation is a long-term concession agreement between Seattle Parks and the Kite Cafe to operate the Golden Gardens Bath House food concession.

We gave you a presentation at the last committee meeting and have a condensed slide deck to share with you today as a reminder with some enhancements to the agreement.

With me here today are more stellar SPR employees, Joanne Gunter and Kathleen Gantz from our contracting unit to take you through the presentation and answer any questions you have.

And are Matt and Tony here too?

Oh, there they are, yes.

And Matt Kelly is here representing his partner, Tony Meyer, the owners of the Kite Cafe, the concessionaires at the Bath House.

And I'll just say that I've had the pleasure of meeting them at the Bath House and Golden Gardens and really just love the story of their both two hometown lifelong friends from Seattle and grew up together and Played sports together and grow families together and now are operating a business together, almost like brothers, but they are our partners and friends.

So just excited for this local hometown concession.

And with that, I will turn it over to my colleagues.

Thank you, Superintendent Diaz.

And hello again to council members.

We're only discussing the food concessions portion of the bathhouse.

Which is located at the south end of the bathhouse, as seen in the picture from the shore.

The Golden Gardens bathhouse is located at 8498 Seaview Place Northwest, on Seattle's northwest side, directly facing Puget Sound.

It is located between the urban landscape of Ballard and the natural shoreline of the Sound, just a short drive from Seattle City Center.

Today, we will give some background information and agreement goals, a timeline of this proposal, the key terms of the proposal, and answer any questions you may have.

Our goals for the long-term agreement with the Kite Cafe are listed here.

We believe this agreement will help SPR serve the public by activating and maintaining this historic structure, enhance park visitors' experience by providing healthy and affordable refreshments, providing eyes on the park to help create a welcoming and safe place for recreation, and enable a great small local business to succeed as a part of our park community.

As a reminder, here is our timeline of a process starting with a request for proposals issued in the fall of 2023. We reviewed four proposals, and the Kite Cafe was the clear winner.

They opened in the spring of 2024 under a one-year agreement, and they have already made some upgrades to the building.

Today, you are considering a long-term agreement.

Some key terms.

The contract term is an initial five-year term with the option to renew for an additional five years.

All utilities are paid for by the concessionaire.

The contract also allows for vehicles such as the ice cream truck, provided it stays on the premises and under an awning.

The concession use fee is based on fair market value, determined by an appraisal dated March of 2023, conducted prior to the RFP issuance.

The annual concession use fee is $16,300, and that is based on 500 square feet of leased space.

Annually, the use fee will adjust for inflation based on CPI, not to exceed 4% per year.

In addition, a revenue-based concession fee has been contracted that will be 1% of gross sales exceeding $1 million annually.

The Kite Cafe has been a reliable and friendly partner throughout their short-term contract, being timely with paperwork and responding to maintenance and safety issues in the building and the park.

That's the kind of collaboration everyone appreciates.

Now I'd like to open the floor to any questions you might have for any of us.

Awesome.

Thank you.

And before I forget, Karina, do you have any insight at all?

Well, I will be presenting three amendments that are sponsored by Councilmember Strauss, so that is my contribution to this committee meeting today, but I have met extensively with Parks about this contract, so have a deep understanding of it.

Awesome, and thank you all for coming back and working with Council Member Strauss.

I know you have some amendments, so I'm gonna go ahead and move the bill before we, if that's okay, I'm gonna move the committee recommend passage of Council Bill 121036. Is there a second?

Second.

It's been moved and second to pass, or to recommend passage of the Council Bill.

Council Member Strauss, you are recognized to move your amendments.

Thank you, Chair, and I do just wanna check in to see if Matt wants to say anything before we jump into amendments.

Thank you, Matt.

My name is Matt Kelly.

I am the co-owner of the Kite Cafe and just wanted to again thank you for your time.

It's good to be back and say that it's been an absolute pleasure working down at Golden Gardens.

My partner Tony and I are really grateful to have a small business in our community that we were born and raised in and look forward to continuing to serve the greater Seattle community.

Awesome.

Thank you, Mr. Chair.

Thank you.

Thank you, Council Member.

I called you Council President 10 minutes ago, so it's better than one.

Yeah.

Anyhow, so just as a broad overview with these three amendments, I'll address them generally, and then we'll ask Karina to brief them individually as we move them individually.

This is the last time that I will bring amendments to a concessionaire contract.

That's something that the Parks Department Liza Rankin negotiates with their clients.

This is a moment where we need to be expeditious.

We need to get this across the finish line so that Kite Cafe can have consistency so that we can make sure that we have a tenant in for the winter and that we just keep moving because next week is recess and then we're in budget and then the next thing you know it's 2026. So in the future if the terms do not meet my My judgment of what is good for our city, I will return it to the department for refinements or I'll vote no.

So just kind of laying that out there.

This is the last time.

If you would like to tick back to slide four, slide four clearly demonstrates the next one.

I can't see what's just four.

Keep in mind.

That one.

Thank you.

This image clearly describes one of the amendments, which is defining the patio area outside of the Kite Cafe and where the Jeep can or cannot park.

As Joanne just described, the original agreement said that the Jeep had to be where the chairs are in this photo and cannot move.

The public benefit here is that that might be the only shade on the beach.

And so having flexibility to say, can the Jeep move 10, 15 feet or not, I believe is good for the public so that if needed there can be chairs there.

The second amendment that I have is regarding the minimum hours of operation that are required.

What I noticed in the concessionaire permit is that it was not evenly distributed throughout the months.

So what my proposal was is to create a birthday cake where in the summer there's the maximum hours and then each of the shoulder months it drops down in a consistent manner rather than I believe October had higher hour requirements than April, even though they are in the same cadence as we get towards summer or away from summer in some senses.

And then the last is regarding the rates and CPI, just bringing this agreement in line with the RFP that was distributed.

I know that you just mentioned, Joanne, that the market analysis was done before the RFP, but the amendment brings this concessionaire agreement in line with an RFP.

This will be the only concessionaire permit that I will vote to reduce the fees.

And there's a reason, which is every three years, For over the last decade, this concessionaire permit has turned over.

And it comes back to...

Matt and I were talking about how many...

We've got a full room this time.

I'm going to ask a play-along question.

How many people in this room have been to Golden Gardens?

How many people have been to Golden Gardens in the summer?

How many people have been to Golden Gardens in December?

More than I thought.

Okay.

That did not prove my point, Chair.

I'll try again.

It's the middle of August.

It's August 13th right now.

Would anyone go to the beach today?

All right, all right.

Well, I'm not winning this argument, Chair.

But I just say that to say this is a unique concessionaire permit that is not served by the bus.

You can only get there by biking or driving or kayaking, if you will.

The weather is very harsh in the winter with a lot of wind and rain, and that's why it is a public benefit in my opinion that we provide These terms within the concessionaire permit to make sure that the business can survive through a harsh winter, even though so many people in this room go to, I'm going to hold everyone to it.

Everyone has to go back in December and go down and visit the Kai Cafe.

So that's the summary of all the amendments and why I am making changes today and why I will not be making changes in the future.

Thank you, Council Member Strauss.

So how it will go, you will move the amendment, we'll pass it to Karina, and then we'll open it up for discussion, and we'll go from there.

You know the process.

Thank you, Chair.

I move Amendment 1 version 1 to Council Bill 121063. Second.

Second.

It's been moved and second.

Ms. Karina, for Amendment 1, Karina will, I'm totally off script, but Karina, will you give us the overview of Amendment 1?

Yes.

So, amendment number one, sponsored by Councilmember Strauss, would allow the concessionaire, Kite Cafe, to expand the use of the Jeep selling milkshakes and ice cream beyond the patio area.

As Councilmember Strauss indicated, the patio area is now currently defined in the agreement as the footprint of the patio awning at the south end of the Golden Gardens bathhouse.

So this amendment would expand the ability to use the Jeep in two ways.

First, it would increase the patio area to also include the hardscaping that is bordered by several low-level concrete walls.

The concessionaire would have an automatic right to use the Jeep in this area.

Next, subject to SPRs, Seattle Parks and Recreation's approval, Kite Cafe could also use the Jeep in a non-patio area, which would basically be the rest of the park, provided that Seattle Parks and Recreation, in giving or considering the request, would not delay, condition, limit, or withhold such use unreasonably.

A not-infrequent or uncommon contract term that is seeking to recognize Parks Department authority and also the commercial expectations and needs of the concessionaire.

And the expanded use in the non-patio area could include placing the Jeep in a different stationary location or operating it on a mobile route.

And as Council Member Strauss indicated, this amendment would expand their vending opportunities and allow the public to use the patio area for shade.

Awesome.

Thank you, Karina.

Councilmember Strauss, you are recognized to address your amendment.

Thank you.

Kathleen, could you scroll to the bottom of this amendment?

There's an image that I think helps represent what we are discussing.

Essentially, this allows the Jeep to have flexible parking within that concrete section, which for every other human being out there, I think we all understood this to be the patio, even though in the original agreement it just said under the shaded awning.

Any movement outside of this area would require approval by the Parks Department.

Awesome.

That seems pretty straightforward.

I don't want to say simple, but straightforward.

Thank you, Council Member Strauss.

Are there any comments on this?

Council Member Kettle or anyone else?

Council Member Kettle?

Is that a yes?

You moving your microphone?

Yes.

Okay.

There is a comment.

It's official with my raised hand.

I just want to thank Council Member Strauss for his amendments.

I appreciate the approach and the points made, and I recognize that The goal of trying to create some stability, and I appreciate that.

I recognize the executive is doing its part, too, but sometimes I think some engagement, particularly with local interests and experience, although I do want to know if you paddleboard to this location as well.

You mentioned kayaking, but not paddleboarding.

Thank you, Councilmember Kettle.

I do not paddleboard.

I am a kayaker.

Oh, okay.

You're touching a line on the Ballard Elks Paddle Club, which is not a paddleboard club, but a paddling club.

Sorry, we're distracting from the work before us right now.

So the bottom line is to ensure that we do have that stability, I'll be supporting the three amendments.

Awesome.

Me as well.

Thank you, Councilmember Strauss, for your work on this.

I will be supporting all your amendments today.

And will the clerk please, well, if there's no other comments, will the clerk please call the roll on adoption of amendment number one?

Councilmember Kettle?

Aye.

Councilmember Strauss?

Aye.

Chair Hollingsworth?

Yes.

Three in favor, none opposed.

Amendment one is adopted.

Council member Strauss, you are welcome to move amendment number two.

Thank you.

I move amendment two version one to council bill 121063.

Second.

It's been moved and second to amend council bill 12036 as presented on amendment two.

Council central staff.

Karina, you are welcome to give your feedback.

Amendment number two would reduce the concessionaire's minimum total hours of operation in March, October, and November to allow Kite Cafe more flexibility in determining their hours of operation during potentially slower times of business.

In March, the hours would be reduced from eight hours to four hours on the weekends.

In October, the hours would be reduced from eight hours to four hours on weekdays.

And then last in November, the hours would be reduced again on the weekends from eight to four hours.

Awesome.

Thank you.

Council Member Shouse, you're recognized to address your amendment number two.

Thank you.

As described before and consistent within this chart, we're just creating a birthday cake towards the summer.

Of required hours, and these are minimum hours, so if they do have, if everyone in this room is out in Golden Gardens Park in December, I'm sure Matt will open the doors for you.

But that means that everyone has to show up at the same time.

Awesome.

I've never heard someone, birthday cake towards it.

I like that.

That was a really good analogy.

Awesome.

Are there any comments around amendment number two?

I don't know if that's an old hand or a new hand, Councilmember Kettle?

That's a old hand.

I'm all set.

Thank you.

All right.

Awesome.

Will the clerk please call the roll on amendment, adoption of amendment number two?

Councilmember Kettle.

Aye.

Council member Strauss.

Aye.

Chair Hollingsworth.

Yes.

Three in favor, none opposed.

Amendment number two is adopted.

Council member Strauss, you are recognized to move amendment number three.

Thank you.

I move amendment three version one to council bill 121063.

Second.

It's been moved and second to amend council bill 121036 as presented amendment number three.

Karina, take it away.

Amendment number three would change the concession base fee, which is functioning essentially like rent as follows.

It would reduce it from $16,300 annually to $16,000 annually to align with the amount listed in the 2023 request for proposals and would also remove the annual inflationary adjustment, which currently has it increased no more than 4% every year based on the CPI.

Over the course of the five-year agreement, this amendment would definitely reduce the amount owed by $1,500 and potentially up to about $8,300 in total.

Thank you, Karina.

Council Member Strauss, you are recognized to address your amendment.

Thank you.

This amendment brings this concessionaire's permit in line with the 2023 RFP and is consistent with other concessionaire permits that we have passed recently.

And I will just also say this all looks and feels simple.

And that is only because of how much work Karina has done.

And I know Joanne, you've been in the mix and I know that Matt, this whole process has probably given you a little bit of heart palpitations.

So just, it looks simple today because so much work has gone into it.

Thank you everyone for your hard work.

Thank you, council member Strauss.

Are there any additional comments about amendment number three?

Seeing none, I'm going to go ahead.

Clerk, will you please call the roll for adoption of amendment number three?

Councilmember Kettle.

Aye.

Councilmember Strauss.

Aye.

Chair Hollingsworth.

Aye.

Three in favor, none opposed.

Amendment three is adopted.

Thank you for that.

And thank you, Councilmember Strauss, for all your work as well.

I don't know if there's any other final comments from our panelists, not panelists, but our staff and Matt.

If there's any other, if there's not any other comments, I'm looking at your faces for facial cues.

Awesome.

Then we are going, Council Member Strauss, do you have any final comments before we vote?

Just very grateful for this being before us and that we're able to vote on it today.

Thank you.

Awesome.

Thank you, Council Member Strauss.

Will the clerk please call the roll on the committee to recommendation to pass the bill as amended?

Councilmember Kettle.

Aye.

Councilmember Strauss.

Aye.

Chair Hollingsworth.

Yes.

Three in favor, none opposed.

Motion carries.

And the committee recommendation will be sent to Tuesday, September 2nd, 2025 to council meeting after the council recess.

Thank you so much.

Really appreciate all of your hard work.

Appreciate you.

Thumbs up.

Will the clerk read?

All my numbers are mixed up.

Item number two into the agenda.

Agenda Item 2, Council Bill 121056, an ordinance relating to Seattle Parks and Recreation authorizing the superintendent to enter into a concession agreement with Magnus and Brewing LLC for briefing discussion and possible vote.

And the Magnuson proprietor is here as a panelist on Zoom.

Awesome, thank you.

I like how the two ends don't change.

Karina, AP Diaz, just the middle.

Just always change.

Just playing.

Thank you all for being here.

I know we're gonna get you set up with some IT stuff.

We're looking forward to the presentation.

This is our third agenda item, but this is number two read into the record because three switched with one.

Does that make sense?

Awesome.

I know it's a lot for today.

I'm sorry.

Thank you so much.

Thank you again.

Thank you, Committee Chair Hollingsworth.

I also called you President, I think, before.

Committee Chair Hollingsworth and members of our Parks Committee Our final piece of legislation we are bringing before you today is another piece of contract legislation, very similar to the Golden Gardens legislation you just passed.

This is a long-term concession agreement for a cafe and brewery at Magnuson Park.

The legislation takes the form of an ordinance authorizing me as the superintendent to sign a concession agreement with Magnuson Brewing LLC to occupy and use a portion of the North Shore recreation area and buildings 11 and 20 at Warren G. Magnuson Park to continue to provide a food and beverage concession for 15 years.

Like our last concessionaire partner, we have had a great partnership With our concessionaire, who is online, correct?

Correct.

Yes.

And also provides a very unique service for any of you who have been to Magnuson.

This is the area where you can get food and you can actually get an alcoholic beverage in the park.

And it's well used and loved and cherished by many people.

So an example of us continuing to offer unique amenities and assets to our park spaces for our public.

So it's my pleasure to turn it over to my colleague Joanne Orsucci who will now give you a presentation and we will all here to answer any questions you may have.

Thank you, AP.

I am also joined by my colleague Ben Bertos from our office who's going to operate the PowerPoint for me.

So we're going to go over the agreement goals today for this ordinance which is Again, authorizing Magnuson Brewing LLC to occupy and use a portion of the North Shore Recreation Area in Buildings 11 and 20 at Magnuson Park.

And we do have the cafe owner online.

Slide three outlines the primary goals for this agreement, which are to provide a positive presence in Magnuson's North Shore Recreation Area.

The restaurant was immediately embraced as a community gathering space and remains so today.

And provides great activation in the North Shore area.

We also want to provide high quality, full service, extremely affordable restaurant service for park visitors, attract people to the park, and encourage visitors to spend more time at the park.

The agreement includes a tenant improvement project to convert the gas kitchen and brewery equipment to electric power by 2033, which is compliant with the city's decarbonization goals.

And it generates revenues that help support Magnuson Park and SPR operations moving forward.

The Magnuson Cafe & Brewery is a busy and popular restaurant destination within Magnuson Park, and the crowd you see here on the steps of the deck in this photo is typical of a sunny day in Seattle, summer or winter.

And I also want to share that much of this space, basically everything outside the fence on the left, is open to the public, regardless of whether you're a restaurant patron or not.

Slide four shows a brief history of this area.

Magnuson Park became property of the city of Seattle via the National Park Service's federal lands to parks program in the late 90s with the final transfer in April 99. This included buildings 11 and 20 at the North Shore area.

These buildings are a former Navy workshop and storage buildings from the 1940s That were later unified into a single building.

So when we say Building 20 and 11, we're really talking about a single structure.

The 2012 Magnuson Park Strategic Development Plan identified the establishment of restaurants and other food service in Magnuson as a key priority, and Building 20's location made that an ideal fit.

As SBR searched for tenants back in that decade, To meet both the space and programmatic needs, we also invested in building maintenance and upgrades.

This included some major projects in 2013 to upgrade the utility infrastructure and roof of Building 11, and in 2017 to retrofit the building for seismic compliance.

More recently, we also completed a project earlier this year to ensure compliance with Title II of the ADA Act.

That was for access into the restaurant through Building 11. In 2014, SPR conducted a request for proposal process seeking to identify and select a food service tenant to occupy and complete restoration of Building 20. The RFP was unsuccessful and didn't yield any interest.

In 2017, we then issued a request for expression of interest, which yielded three proposals, including one from the group that would become Magnuson Cafe and Brewing.

Before we move on from this slide, I just want to note that the blue line on the map here Shows the easiest path to access Building 11 from Sandpoint Way.

Magnuson Cafe and Brewery doesn't have street visibility, but as you can see from the earlier picture, it's still a popular destination within the park.

I'm going to try to go quick here over the timeline.

Slide five.

Lays out the timeline of the events from inception to today.

The cafe was selected in 2017 through this expression of interest process that I just mentioned, and we executed an initial contract in January 2018. Construction of the restaurant and outdoor decks started right away.

This photo shows how different the building looked at that time.

The restaurant has done a great job of making the space more attractive and welcoming.

The restaurant officially opened in July 2018. The city's gross revenue from that first agreement was a little over $378,000, and about 85% of that was absorbed in a concession fee offset for tenant improvements.

That offset got us a first-class restaurant in Magnuson Park.

In 2022, we began negotiations with Magnuson Cafe and Brewery for a 10-year agreement that would commence in August 2023, and negotiations reached a fairly advanced point.

But in 2023, SPR received an ADA complaint regarding the premises, and the long-term agreement was put on hold temporarily while the ADA barrier was addressed.

In the interim, SPR and the brewery executed a two-year extension agreement while the ADA project was completed.

It's now completed, and we're looking forward to the next phase.

Slide six outlines the key terms for this agreement.

It's for 10 years with one five-year extended term exercised on mutual agreement.

Fifteen years would keep the brewery in the park through July 2040. In sum, the total concession fee for this agreement is roughly $970,000 for the first 10 years and approximately $1.74 million, including the extended term.

In the first year of the new agreement, the concession fees collected will total $60,000 or $5,000 per month.

A detailed breakdown of the fee schedule is coming on the next slide.

There is an additional percentage fee of 3% due on all restaurant and brewery sales, exceeding $3.5 million per year.

SPR receives an annual financial report to determine whether this fee applies.

So far, this fee has not been triggered.

The annual cafe revenues have peaked at around $2.6 million.

Finally, this agreement includes a required tenant improvement project for which up to $190,000 in concession fee offsets will be available once the electric conversion project commences.

And lastly, the tenant has committed to annual public benefits of approximately $25,000 in service and direct donations, also detailed on a coming slide.

Slide seven shows how the 15 years of fees are collected in this agreement.

And if you look at them close, they might look a little odd to you.

The first eight years were laid out by the concessionaire to accommodate the remainder of a loan that the business has that did the initial build out.

So it looks a little atypical, but over the course of 15 years, it all comes together.

And it shows the The fee revenue to the city is $1.738 million over those years.

And lastly, on slide eight, tenant improvements and public benefits.

This contract includes a required tenant improvement project.

That is to decarbonize the restaurant and brewery operations, converting all the kitchen and brewing equipment to electric utility instead of gas.

In compliance with Executive Order 2021-09, Driving Accelerated Climate Action.

The total cost of the decarbonization work is estimated now to be $710,000, as shown on this slide.

The city is offering to offset Magnuson Cafe and Brewery's concession fee up to 50% of the kitchen portion of the project and a maximum of $190,000, which that might not look like it adds up exactly right, but there is some potentially unanticipated electrical upgrade work that the concessionaire believes might need to be added to that $350,000.

But we don't know what that is as of today.

This slide also shows Magnuson Cafe & Brewery's proposed annual public benefit contribution.

There is no additional offset for public benefit in this agreement.

Their estimated annual value is about $25,000, the largest portion of which is the expense for the cafe to maintain the public restrooms in Building 11. These restrooms serve both the restaurant users and general park users.

It's the busiest restroom in the North Shore area, so there's great value to us to maintain that public restroom.

In addition to these tenant improvements, Magnuson Cafe and Brewery has committed to annual cash or equivalent donations of approximately $2,000 to Magnuson Community Center and $5,000 in direct donations to neighboring recreation nonprofits in the park.

And I wanted to add to that one thing that they're always really generous with is pretty much anybody in the park or the neighborhood that needs to do a fundraiser, the cafe and brewery is always on board for that and will do things like, you know, $1 from every beer sold at an event is donated to that particular nonprofit.

So they're really a great partner in the park and everybody in the community enjoys them.

And that brings us to slide nine, which has a great-looking bacon cheeseburger on it.

And any questions?

Well, I'm vegan, so that looks disgusting to me.

But I'm really serious.

I'm like, ugh.

No, I'm just fine.

But it probably looks good to other folks.

Thank you for that presentation.

Before I go to Karina, I'm going to go to Cody.

I know you're online.

I don't know if you have any comments.

Thank you so much for joining us today.

And then we'll jump to Karina.

Cody Clough.

I'm originally from Washington.

I went to the University of Washington.

I grew up in Olympia.

My family lived all over the world.

We moved back eight years ago.

I wanted to open my own business.

This became my first business in Seattle.

It's been an amazing experience.

Just being part of the community.

We live right next to Magnuson Park and experience the park every day.

And my kids go to the local public schools.

My daughter graduated from Roosevelt.

My son's about to start Roosevelt.

So we're very much entrenched in the community.

And we feel like Magnuson has been part of that.

And it's just been a fabulous experience.

And we're looking forward to the next 15 years of having Magnuson.

Awesome, Cody.

It's nice to hear we got some Rough Riders in the house.

Roosevelt.

I know.

That's not welcome by our Raiders?

The Patriots.

Patriots.

They haven't figured it out yet.

Understood.

The Patriots.

Thank you, Cody, for that.

And yeah, it was really great to hear about your...

I know your brewery and just really appreciate all the time and attention and obviously the connection to the community that you give.

I want to jump over to Karina to see if you have any insights from Central Staff.

I do not have anything else additional to add.

Awesome.

Thank you.

Council members, I want to open it up to you if you have any questions as well.

Sure.

Council member Strauss.

Thank you.

I'm not going to ask many questions other than to say Joanne also helps put on the sit-in of my parade in Ballard every year.

Big fan over here.

Just know your audience.

You got a vegan chair and a Nathan Hale grad.

I mean, Cody, I appreciate the shout-out to Rough Riders, but, I mean, we all know Nathan Hale's better.

That's all I got for today.

A couple vegan items on the menu.

All right, all right, all right.

Thank you, Councilmember Strauss.

Councilmember Kettle.

Chair, thank you.

I just wanted to add, you throw some avocado slices on top?

I'm okay.

That's all.

Okay.

The fries are vegan.

I heard.

Peanut oil, they're cooked in.

Okay.

Awesome.

So council members, I didn't check in with you, but are you all comfortable?

Yes.

Okay.

Awesome.

Just look left and right.

So I'm going to go ahead and move to committee recommend passage of Council Bill 121056. Is there a second?

Second.

It's been moved in second to recommend the passage of this council bill.

Are there any other final comments about the bacon cheeseburger?

No.

Okay, will the clerk please call the roll?

Council Member Kettle.

Aye.

Council Member Strauss.

Aye.

Chair Hollingsworth.

Yes.

Three in favor, none opposed.

Motion carries in the committee recommendation of council bill.

The council bill 121056 will be sent to the Tuesday, September 2nd, 2025 meeting.

That's going to be a loaded agenda for me on September 2nd.

Awesome.

Thank you all for being here.

Thank you.

Thank you.

Thank you.

Thank you.

Cody.

Appreciate you.

Thank you so much.

Thank you, Chair Hollingsworth and Parks Committee members for Making decisions today that are important for parks and for our public parks.

All the decisions we make today are making everlasting impacts for our residents to enjoy and use spaces.

And we love delivering the services and we appreciate your governance and partnership in doing that for Seattle and our department.

So thank you very much.

Awesome.

Thank you, Director Diaz.

And now we're going to read.

Now we're back into the flow.

Item number four into the agenda after the hops around.

Agenda item number four is Council Bill 121005, an ordinance relating to land use and zoning, updating and clarifying requirements for solid waste storage, staging areas, and access for residential, commercial, and industrial development.

For briefing, discussion, and possible vote.

Welcome back.

Thank you.

Looking forward to the discussion today.

And I understand you don't have a new presentation for us today.

It's just kind of us...

Going over some of the things that we had last time, but I know you will give us an overview of the legislation and we have Mr. Goodnight here who will give us his thoughts as well.

And I don't know if we're going to do a presentation first or good.

No.

Okay.

Awesome.

Thank you, Chair.

I can just provide some brief comments.

Please do.

Brian Goodnight, Council Central Staff.

As you know, this is the second discussion of Council Bill 121005 relating to updating the solid waste storage and access regulations in the Land Use Code.

At the Committee's previous meeting on July 23rd, the Committee held a public hearing And received a presentation from executive staff who are here today on the proposed code amendments.

Briefly, updates contained within the bill are intended to, among other things, one, codify standards to match actual solid waste collection and safety requirements.

So those are things such as clearance heights for collection trucks, staging and collection locations, and maximum slopes for the placement of dumpsters.

Two, to address solid waste storage access and collections in neighborhoods that are going to be impacted with increasing housing densities.

And then third, to improve safety for pedestrians, contractors, residents, and building maintenance staff.

And I think that concludes my brief remarks.

As you can see, we have staff from both SPU and SCCI here, and they can answer any questions.

Awesome.

And would you all like to have any further comments as well?

Anything?

Thank you for that overview, Brian.

Sorry, I didn't mean to like skirt over you.

Got it.

We're happy to entertain any additional questions.

We had the opportunity to work with Council Member Kettle's staff and Council Member Strauss' staff after our meeting two weeks ago to answer some of the additional questions or give additional responses to the questions you brought up at that time.

And we hope that we were able to meet your needs and we're here to answer any final thoughts.

Councilmember Strauss.

Thank you.

I understand.

We couldn't meet.

I know that our schedules didn't align.

I do look forward to a future engagement just to talk through how this is a layer on top of many different layers that are required when we're building housing and how all of those layers interact to either create an easier pathway towards building more housing or a more difficult pathway.

But I'm not going to sit up here because we have a very packed agenda.

So I look forward to talking to you in the future.

Awesome.

Thank you, Councilmember Strauss.

Councilmember Kettle.

Thank you, Chair Hollingsworth.

Thank you for the briefing and the engagement.

I'm really thankful.

And I also appreciate some of the discussions that we've had related to the collection and the like, because it kind of goes to some of the comprehensive plan discussions that we've had, which is helpful to me and my team.

And I'll just close by saying, you know, We have to look out for the logistics of life here in our city.

This kind of goes to how you collect this.

It goes to my points about loading docks, because if we don't account for this, this all gets pushed onto our streets, which then creates a whole other problem.

So we need to be smart.

And this goes to the alley question that we were talking about.

So, we need to ensure that those pieces are set because in the long run, that's going to help us because if we get jammed as a city in terms of how it works, the operations of it, that's going to have a lot of ripple effects.

So, I appreciate the input and the opportunity to make that plug once again.

And I'll keep doing it until the end.

All right, thank you, Chair.

Awesome, thank you, Council Member Kettle.

I really appreciate, we had this presentation and then I met with a development that's happening in our central district and they were talking about the utilities piece of it.

And I felt like I knew more when they were discussing it because we had this presentation and they were talking about how they were gonna navigate and put it in.

A certain area and the height and the garage and, you know, all these different components that I don't think a lot of people really understand about all the guts and nuts and bolts that happen in our city every single day.

They only see a lot of the surface level.

And I think we as council members get to see You know, how a lot of the city functions and operates.

And just, it reminds me of just basic fundamentals.

Everyone always likes to see someone make a shot, but they don't know all the mechanics that go into it or the practice or the hours or all the things in the background.

So anywho, I can relate anything to basketball.

So thank you all for coming.

I'm comfortable voting on this today.

I'm do a quick check left and right.

Awesome.

So I'm gonna move that the committee recommend passage of council bill 121005. Is there a second?

Second.

Thank you.

I got two seconds.

It's been moved in second to recommend the passage of the bill.

Are there any final comments?

Seeing none, clerk, will you please call the roll?

Council member Strauss?

Aye.

Council member Kettle?

Aye.

Chair Hollingsworth?

Yes.

Three in favor, none opposed.

Awesome.

The motion carries the committee recommendation that the bill pass will be sent to, again, Tuesday, September 2nd, 2025 meeting.

Thank you all for being here.

Really appreciate your time and energy on this bill.

Awesome.

And looking forward to hearing the impacts of it.

I know Councilmember Strauss will all be having meetings.

Clerk, will you please read item number five through 10 into the agenda for the record?

Agenda items five through 10 are appointments 3270 through 3275. The appointments and reappointments of Jeremy Phoebus, Ebony Rose Frazier, Rita Howard, Raj Kumar, Amanda Richer, and Robin Schwartz as members to the Seattle Public Utilities Customer Review Panel for a term to July 31st, 2028. This is for briefing, discussion, and possible vote.

Awesome.

Thank you all for being here.

We all want to be a part of the customer review panel, so this is awesome.

Director Lee, please take it away.

Thank you.

Thank you, Chair Hollingsworth and members of the committee.

For this next item, we are seeking your approval of six proposed appointments and reappointments to the SPU's customer review panel.

And as you may know, this panel advises SPU leadership and makes recommendations to both the mayor and the city council on our strategic business plan, which helps focus our work to best meet the needs of our customers and our communities.

The plan also provides our customers with a predictable three-year rate path and rate projections for the subsequent three years.

These appointees continue the Customer Review Panel's tradition of strong community representation and technical expertise.

They reflect our ongoing work to engage more neighborhoods and to include voices from communities that have been historically underrepresented.

I'm going to hand it off to Justin Chan now, who is our Strategic Business Plan Policy Advisor, for more information about these very qualified nominees.

Good afternoon, council members.

Justin Chan again with SPU.

So a quick overview of the customer review panel.

So it was formed in 2013, became a permanent body in 2018. The panel advises the mayor of the city council on SPU's strategic business plan and rates.

Panel includes 11 members from private, public, nonprofit sectors, utility experts, business leaders, and community reps. Four CRP members who started in August of 2022 finished their first terms this year and asked to be reappointed.

And two CRP members termed off this year, which opened up two seats.

As you can see here, I have with me Sam Stork, and we had a wonderful partnership with Department of Neighborhoods to conduct a joint recruitment for CRP and the Solid Waste Advisory Committee.

Using a single application to streamline outreach and maximize impact.

And the goal was to really engage a diverse swath of candidates to reflect just how diverse Seattle is, our neighborhoods, backgrounds, experiences, and perspectives.

As you can see here, we use a huge, or I would say a diverse array of recruitment channels.

And as a result, over the past few years, we've had, we increased diversity of the panel.

And Sam can attest to this as well as our CRP members.

Bring a wide range of perspectives and lived experiences to guide our work.

So we received 13 highly qualified applicants for the two available seats.

Fortunately, we were only, you know, able to choose just two out of the 13. One for the mayor's office for approval and one for city council's approval.

So we are delighted to reappoint four members, Ebony Fraser, Raj Jamar, Amanda Richer, and Robin Schwartz.

Ebony is an ADA coordinator, African town board member, a passionate anti-racist advocate, supporting equity across our city.

Raj is a retired conservation manager from, retired from Nestle, Perina, now volunteering in tax aid and food security.

Amanda is a displacement consultant, Shelter App co-founder, national homelessness advocate, speaker, and artist.

And Robin is a environmental justice advocate, focused on climate resilience, working with the Duwamish River Community Coalition.

And we are very excited to recommend the following appointments for council consideration.

Jeremy Phoebus, a civil engineer for over 25 years.

Jeremy brings hands-on technical insights and experience in city infrastructure, stormwater, housing affordability, and is deeply engaged as both professional and a customer.

And Rita Howard, who is a retired technical writer, teacher, community advocate, with deep connections with older adults, working families, and the BIPOC communities.

So our next steps are for community consideration, full council consideration vote, and our next CRP meeting will be on Monday, September 8th.

Awesome, and I know Jeremy's here.

Would love if he had some few words to say.

I don't want to put you on the spot, but you're here.

Thank you, council members and chairperson.

You mentioned you don't get a lot of volunteers necessarily for this committee.

I am a civil engineer, so maybe I have unique interests, but I am passionate about infrastructure that works for the people of the city, infrastructure that is sustainable and resilient, and that puts people first.

And I'm excited to be able to put my experience to work helping the utility.

Look forward to service.

Honored to be considered.

Awesome.

Thank you.

And before I ask my colleagues if they have any questions, just wanting to thank you to all the people that are being reappointed and our new appointees as well.

We know it's volunteer work.

Just really impressed with your background, both you and Rita's background when I was reviewing.

And I know that our office was very involved in the selection process, and there were many great candidates.

And I think this just really speaks to the important work that we're doing.

And didn't realize there'd be so many candidates for this work, which is great.

And just want to thank you for all your dedication as well.

I think one of the things that I love to hear when city departments are trying to always get better is having a review panel.

Just like, especially the customer always wins.

And so just the constant ability of getting better every day is something that is really good and we strive to be.

So I will pause there and just look to the left or right to see if my colleagues have any questions.

Council Member Kettle.

Thank you, Chair Hollingsworth.

I was just going to say, as someone who used to volunteer in community and in different ways in the city, I realize the time and commitment and the impacts on yourself and your family.

So I just want to say thank you.

To all those that put their names forward for appointment or reappointment.

So thank you very much.

Thank you, Councilmember Kettle.

Councilmember Strauss.

Thank you.

I am so sorry.

I did not catch your introduction.

I'm Samantha Stork.

I work for Department of Neighborhoods and support Seattle Public Utilities with equitable engagement.

That's why I didn't catch it, because I was looking for the names on this appointment packet.

Typically, I will ask the folks that come just some questions.

Jeremy, we've got a lot on the agenda today, so I'm just going to share with you what I liked about your application.

I find that I'm quoting from your application.

I'm going to make sure this is yours.

Yes, it is.

In my experience as a professional engineer working on new housing in the City of Seattle, I find that existing policies often work against new housing, housing affordability or improved mobility and accessibility and other significant public interests.

In the name of protecting rate payers or I'm going to stop there because I love the rest of this statement.

And so I just am sharing with you that I'm really excited to have you on and thank you for your volunteer service.

These answers really nail why I believe that you should be on this panel.

Thank you.

Thank you.

Awesome.

Thank you all so much.

And with that being said, I'm going to move that the committee recommends the confirmation of appointments 3270 to 3275. Is there a second?

Second.

Awesome.

To my left, you win, Council Member Strauss.

It's been moved and second for the committee to recommend appointments of 3270 to 3275. Will the clerk please call the roll?

Councilmember Kettle.

Aye.

Councilmember Strauss.

Aye.

Chair Hollingsworth.

Yes.

Three in favor, none opposed.

Motion carries.

Committee's recommendation will be sent to Tuesday, September 5th, or September 5th, sorry, September 2nd, 2025 City Council Meeting.

Thank you all for being here.

Really appreciate your time.

Thank you so much.

Thank you.

And now, Item number 11 into the record.

And just for a time check, council members, we have 13 agenda items.

Nope, I lied.

14 agenda items.

So we're on number 11.

Agenda item 11 is Council Bill 121051, an ordinance relating to the solid waste system of Seattle Public Utilities, revising rates and charges for solid waste services, revising credits to low-income customers for solid waste services, adding solid waste service categories, and amending sections of the Seattle Municipal Code.

This is for briefing discussion only.

Awesome.

Thank you.

Briefing discussion, especially when we talk about all this good stuff.

All right, go ahead and say your name for the record and we'll get started.

Maria Koh, Seattle Public Utilities, Rates and Financial Planning Manager.

Andrew Lee, General Manager for Seattle Public Utilities.

Brian Goodnight, Council Central Staff.

I will lead off and I will try to be brief with my remarks, considering all the agenda items.

Our next presentation covers our 2026 to 2028 solid waste rate proposal.

As you know, the solid waste fund is supported almost entirely by utility fee revenue and solid waste customers are billed by either by SPU in the case of residential or by collection contractors in the case of commercial customers.

I will kind of fast forward to the punchline, which is the proposed rate increases for the solid waste Rates are consistent with the average overall rate path of 4.7 percent per year, as was approved by the City Council through SPU Strategic Business Plan that was approved last summer in 2024. The rate package also expands our utility offerings and our goal of diverting items from our landfill.

And it introduces a new special item pickup service.

The special items will include a battery bag, a special items box for smaller electronics, and the ability to include large and bulky items all within our customer's existing rate.

This legislation would also adjust credits for low-income customers through the utility discount program.

So with that, I'm going to hand things off to Maria Koh, our SPR rates manager, who will lead us through the presentation.

All right.

Thank you, Andrew.

And thank you, council members.

So Seattle Public Utilities has three lines of business, and we set rates for those lines of businesses every three years.

So one rate study per year.

This year, it's time for solid waste.

So this rate study will set rates for 2026 through 2028. As Andrew mentioned, the proposed solid waste rate package in front of you is in line with the strategic business plan that was adopted last year.

Overall six-year average for solid waste itself remains at 3.1%, and the annual average increase for each year in the six years is 4.7%.

Compared to the strategic business plan, the rate path has been smoothed a bit.

You can see we were able to eliminate the spike in 2029 and move that down to 3.2 and 3.5 and 3.5% in each year.

The solid waste transfer station rates are increasing a little bit more at 5.2% above that 3.1% average due to a change in the demand forecast, which is expected to decrease.

Our solid waste rate typical bills, this is what our single family, multi-family, and small businesses are expected to see.

Note that the transfer station rates as well And a residential bill comparison.

So this is looking at combined packages.

So Seattle single-family has a 96-gallon, sorry, 32-gallon garbage cart, 96-gallon yard waste, and recycling carts as well.

Recycling is every other week.

It's very challenging oftentimes to compare solid waste as services and frequencies change.

The comparisons for San Francisco are the closest for comprehensive services provided.

Tacoma and Portland, the bills have been adjusted to account for collection every other week instead of, to be similar to our every week collections.

Next we're gonna look at the solid waste system.

So this slide shows how solid waste is collected and processed within the city.

The majority of the solid waste services are contracted out to a number of companies.

City staff is responsible for the operations of our two transfer stations, as well as policy and program management.

Solid waste is either collected by contractors or self-hauled to the transfer stations.

The city provides garbage, organics, and recycling carts for single-family and multi-family households and commercial garbage and organics collections as well as limited, sorry, dumpsters as well as limited recycling if requested.

Our customers are predominantly single family, make up the majority of the accounts, followed by multifamily and commercial.

Multifamily and commercial are with dumpsters, as I just mentioned, and we have carts for residential.

We have two collection providers, Waste Management and Recology.

These contracts were negotiated in 2017-2018 and went into effect in 2019. They currently run through 2029 with the option for extensions to 2031 or 2033. Our processing and disposal is done by several different companies depending on the waste.

Recycling is hauled directly to Republic facilities in Seattle.

Organics are transported to the two local processor facilities.

And garbage is transported by rail to the waste management landfill in Oregon.

Next, we're going to talk about where the money comes from and where it goes.

If you remember from the customer account slide, residential is our largest share and includes single-family and multi-family.

Commercial is the next largest, and transfer stations where people and companies can take trash are a growing part of the revenue stream.

Other revenue streams include recycling commodity revenues from the sale of recyclables to processors and direct-to-rail revenue.

So this is non-contract commercial waste that comes by private transfer to a railhead in South Seattle.

For expenses, solid waste contracts, which are the pieces of the pie, are collections, processing, and disposal are by far the largest pieces consisting of almost 56% of our total expenditures.

Taxes for city and state account for 16%.

The other O&M, or operations and maintenance piece, consists of the SPU branch expenses that we control.

As you'll note, the $50 million difference between revenue and expenses is used to pay down debt and maintain financial policies.

Which segues to our next slide.

So our financial policies are the key financial metrics we use to monitor and maintain the health of the solid waste fund.

Net income should be positive.

Debt service coverage is a ratio between the operating margin and debt service obligation.

Rating agencies look at this with and without taxes.

And our internal cash balance of 45 days operating is higher to recognize a disruption of services could impact more than 20 days of contract expense.

This is also more in line with peer agencies.

Finally, cash financing of capital, which is now at 100% cash, as we no longer bond finance.

However, when we did bond finance, doing 10% or greater of our capital program was essentially a down payment on those projects and helped us prevent rapid increases in debt service and the burden.

As Andrew mentioned also, we're excited to offer a new phasing in of a special item pickup.

This slide provides some additional details.

The goal is to divert items from the landfill, enforce e-waste and battery disposal bans, as well as improve our solid waste service offerings.

The services would be phased in due to the need for outreach, billing system updates, and contractor capacity planning.

In 2026, a special items box and a battery bag will be offered, and beginning in 27-28, one electronics and bulky item would be included each year, in addition to those special item box and battery bag.

The next steps.

We're here today and September 10th, not September 2nd, for consideration and a possible vote.

And then hopefully full council consideration on the 16th with rates going into effect April 1st, 2026. Thank you for your time.

We're open to any questions you may have.

Awesome.

Thank you for that.

And I'll kick it over to Brian Goodnight for any assessment from central staff.

Thank you, chair.

I am just diving in right now to every year when they When SPU sends up these rate packages, they have a detailed rate study which can be found as an attachment to the submarine fiscal note.

So I'm diving into that now, and I'll be asking questions.

And when it comes back on September 10th, I'll have a memo for the committee, and we'll have comments at that time.

Awesome.

Thank you, Brian.

And I know I had my first briefing where I asked a bunch of questions, and we all talked about it.

And I think from all the other council members, as well as the affordability piece.

It's not, it's always a challenge when we understand that, you know, rates are increasing, but also the infrastructure, the investment, us growing as a city.

But I will stop and see if other council members have any questions, but I do encourage my council members to get briefings, not telling you all what to do, but telling you what to do.

Council member Caddo.

Thank you.

I will get my mic stand fixed.

Thank you, Chair Hollingsworth.

Thank you, Director Lee, for being here and the team.

I appreciate the presentation, Ms. Koh, and, of course, Mr. Goodwright.

Good night.

I have a fair amount of exposure and experience with the wastewater, which is a whole other subject.

But it kind of goes to what Chair Hollingsworth is saying in terms of the affordability pieces.

And it's interesting in the sense of the challenges we're facing.

But part of this is trying to do it properly and to the next level.

So there's that part.

And I really wanted to appreciate the way you do it, you know, these three-year increments, because as I've learned, not everybody does that to their detriment and our detriment.

And so thank you for your leadership and basically setting the example, because that's important.

I'm a little bit concerned moving forward somewhat because of I'm anticipating another round of inflation due to what is happening with our federal government policies on tariffs and the like, and I think that's going to ripple through and that's going to start jamming us again.

One thing I've come to realize in this job, I've already known it, but in this job it's just so more acute, is the impact of inflation.

What's the impact of the Fed rates and so forth?

And having that low is so important, but evidently that's being thrown out the window nowadays.

So that's one concern in terms of how this plays out, and that's largely out of our control and sense.

And the other part of the briefing, one of the questions I had, and by the way, can I first go back to the previous two or three agenda items in terms of the pickup and the like?

I just want to commend The drivers, because we were talking about, you know, the ability to get in, dealing with slopes and the like.

And so please pass my thanks for their ability to get around the city.

And particularly, I won't say where I live, but for those guys who were able to back into my dead-end alley, coming a bit off a slope, that is skill.

And that's really important.

And so I just wanted to, you know, pass a thank you for, you know, each week coming, you know, for the, you know, the compost yard waste and also the garbage collection.

And as you know, the every other week recycling, which leads me to a question is, you know, looking at it and we're covered now, but I also I've had different exposures or experience in this job related to recycling.

You know, having a recycler who couldn't afford to be down south and was looking to relocate, you know, in terms of dealing with industrial waste.

And it was so important to have that.

And then another that was doing, I think it was bottled recycling, a company that got bought out by a French company.

And then the French company decides, because there's some You know, decisions that had nothing to do with the mission in terms of recycling here in Seattle to close it.

And my question is, particularly recycling, but I guess it could be with, I think it's less of an issue with the others, you know, the stability of the suppliers, the ability to have the capacity and the capability and the capacity to work these areas, and particularly recycling.

Can you speak to that?

Yeah.

The recycling markets are variable, absolutely.

And we saw it with glass recycling most recently, where our major sort of glass recycler in the area went out of business.

And so they shut down their operation, which was just on East Marginal Way.

That being said, we have been continuing to work directly with those recycling markets to make sure that they are actively diversifying.

And fortunately, the recycling markets, when you look More broadly across the West Coast are actually fairly strong.

And so in the glass in particular, they've been able to take advantage of recycling markets, for example, down south in California area and not rely singly on a particular market, say the wine industry in Woodinville, for example.

And the diversification, I think, is always an advantage to us because it ensures that those glass materials will eventually go to recycling as opposed to other uses.

You know, I think we're seeing it across the board, you know, that there is going to continue to be changes in the market.

But again, whenever these changes occur, we definitely have strong relationships with the recycling market, you know, the end users in a sense, and continue to look at opportunities to make sure that our markets are strong.

I will add one other thing to this, which is we, you know, recently at the state level, state legislature, they passed the Recycling Reform Act for paper products and packaging.

And so we are headed towards a different situation in several years where the producers are actually going to be paying for recycling costs.

And they will also kind of help to dictate some of the market on that.

And so that's actually, we believe, is going to be a real big benefit To our rate payers as well as to the general market.

And so that's something that we look forward to.

Well, thank you for that.

At the end of the day, we need to be having this ability to recycle however it's done.

So I'm glad to hear that response because the glass, that was the one I was referring to because with the French company buying it out and then deciding.

So thank you for that.

I think that's really important because ultimately we need to be recycling, let's say, for the public good and for our environment and the like.

And as a public service announcement, I want to say that council members, to include myself, cleaned their recycling to ensure that no fog gets into the pipes.

Even today, actually, this morning, I cleaned with a paper towel to avoid any fog challenges in District 7. Thank you.

My colleagues may laugh, but it's important.

Am I right directly?

Absolutely.

Okay, thank you.

Councilmember Kettle.

Yeah, we're laughing.

You're absolutely right.

Councilmember Strauss, did you have any questions?

Thank you, Chair.

To be brief today, since we are technically 23 minutes away from the end of committee, and I have reserved extra time.

Thank you.

For your request.

I will say my questions.

I will ask for a briefing to the side.

I know in the area, the amenity area for garbage, I did not get a chance to meet with Angela in between the committee meetings and I was okay voting.

That is not the case for this.

So I will not be voting on this without time dedicated.

I can tell you I'm already scheduling for October, so getting time on my calendar now is critical because I think what you're seeing here is a backup of departments across the city trying to get their legislation through council before we go to budget.

My request to all departments, Andrew, you are sitting before me right now, Is to get your legislation in before this because this is happening across the board.

So you're seeing, what, 17 bills in putt today?

We had seven bills in budget last week.

You're not the only one, but this is a message to all department directors.

You cannot wait like this because there is just being really direct.

There is a potential like we don't have time to meet between now and September 10th, right?

I will also mention Maria Koh is one of our board members for the Seattle City Employee Retirement System.

So thank you, Maria, for all of your work, your service to make sure that all of us can retire.

Thank you, Councilmember Schaus.

Thank you, Maria, for that.

As well, thank you both for being here, Director Lee.

And I also know, and I know that colleagues, you will all get your You will all get your briefing as well.

And I appreciate Council Member Strauss stating that because this is really important.

And I also brought up one of the utility discount programs and the threshold and that being concerned that we need to address the threshold as we are continuing to raise prices and so forth that I think our threshold needs a good deep dive as well.

But so anyways, thank you all for being here and we will continue the conversation.

Awesome.

Clerk, we're gonna move on to item number 12. Into the agenda.

Agenda item 12 is Council Bill 121043 relating to the Harbor Island Superfund site authorizing Seattle Public Utilities and Seattle City Light to agree to orders issued by the United States Environmental Protection Agency regarding remediation of contamination at the East Waterway operable unit of the Harbor Island Superfund site.

This is for briefing discussion and possible vote.

Awesome.

Director Lee, take it away.

Last April, the committee approved legislation authorizing SPU and Seattle City Light to proceed with cleanup of the Lower Duwamish Superfund site, according to the terms of a federal consent decree with the Environmental Protection Agency.

Today, we have similar legislation that addresses sediment cleanup within the East Waterway of the Duwamish River.

The East Waterway is a one-mile-long, 157-acre part of the Harbor Island Federal Superfund site.

Like the Duwamish site, sediments in the East Waterway are contaminated with historical pollution from industrial and urban use.

So the legislation we're asking you to consider today would authorize SPU and Seattle City Light to enter into agreed orders with the EPA to clean up contamination at the East Waterway Superfund site and enter agreements also with other parties to share the cost of implementing those agreed orders.

With me today, I have Dave Shuchart, SPU Superfund Program Manager, who will provide more detail about the purpose of this legislation and what it would do, as well as Laura Wishek from the Seattle City Attorney's Office to answer any questions.

Awesome.

Welcome.

Thank you, Andrew.

So the East Waterway is one of our, it is our second largest Superfund cleanup site that the city is involved in.

The other sites include Terminal 108, which is a land-based site on the Lower Duwamish Waterway banks and Gasworks Park.

The East Waterway is part of a separate Superfund site from the Lower Duwamish Waterway, so it's important that we all recognize that kind of administratively, and yet we work with With the community and with EPA to clean these waterways as one river.

Administratively, this site is part of the Harbor Island Superfund site, which includes seven operable units.

The East Waterway is the last operable unit that's being addressed by EPA.

The city became involved in 2006. Up until today, we have an operating memorandum of agreement with the port King County and the city to fund and conduct the studies that have been needed.

During all this time, however, the port has been the sole signatory of the actual EPA order.

In addition to completing all the site cleanup studies, which were finalized in 2019, we've also done some work, and Laura can speak further if you have interest in some of the liable parties that Might have contributed to the contamination besides these three parties.

But in 2024, EPA considered all the studies, and based on public comment and input on their proposed plan, they issued their interim record of decision, which defines the cleanup actions that are needed at the site.

As we work with our partners, we will be needing a new memorandum of agreement.

As we work with them to accomplish the next major phase in the cleanup, which will be the engineering design.

And that will be covered under a new order with EPA.

The city departments that are involved are both Seattle Public Utilities and Seattle City Light, and we internally share costs and have budgeted for the cleanup expenses throughout this program.

EPA's cleanup decision involves primarily dredging of the waterway.

That's to accommodate the heavy uses by the large industrial container ships that come in and out of the east waterway.

And the main channel of the waterway is a federal navigation channel with an authorized depth.

And so that kind of limits our approaches that can be used.

We can't, for example, put in a cap That would raise the bottom elevation above the navigation channel depth.

EPA's estimated cost for the cleanup is $401 million, and that would be in 2024 dollars.

So the next step is we have been working with EPA to negotiate the next order, or ASAOC.

Laura can tell you the acronym definition, which will cover the engineering design, which is about a four-year effort from 2025 to 2029. We estimate that this design phase will cost roughly $20 million.

By being a signatory to the ASAOC, that will allow the city to become eligible for state grants of up to 50% matching funds.

And just for your edification, We sequenced and timed that negotiation with EPA in order to meet the council's approval schedule because the city's council approval is sort of the final step in making this order come together.

Again, the performing parties will still be the city, the port, and the county.

We'll have a new MOA that we are currently negotiating with them.

The main points of this will be an interim cost share of equal shares.

Consensus decision making, which is the same format we use for the Lower Duwamish effort with our partners.

And the port has stepped up and offered to hold the design contract for this, so we don't have to have staff administering the actual design contract.

So our request in the ordinance is to authorize the departments to spend money in the amounts and years that are necessary and that may extend beyond the budget cycle.

The city attorney does have the authority to sign the EPA order, but our budgetary needs are covered by the ordinance.

Public involvement is key in all of these Superfund cleanup projects, and the East Waterway is no different.

There was extensive public involvement in EPA's proposal for the cleanup in 2023, and EPA responded to that input and those comments.

And throughout the cleanup, as we do with the Lower Duwamish Waterway, EPA, under the Superfund program, is the leader for stakeholder involvement.

Throughout both design and construction.

Part of our work in responding to EPA's order will be leading or executing most of the community involvement actual work that has to happen.

So there'll be community involvement plans and working closely with tribes and the natural resource trustees as the design is developed.

Also, our leadership of all three responding Agencies regularly meet with the Duwamish River Cleanup Coalition for ongoing coordination.

So this year, we expect to execute the design order with EPA and execute a MOA with our partners.

That will allow the port to proceed with procuring the design engineer consultant.

And again, it'll be about a four-year effort to complete the engineering design.

We expect in around 2028 that design will be complete and it will be time for a consent decree with EPA, and the consent decree will go further in requiring us to not only implement the construction, but the entire long-term implementation of the remedy into the indefinite future, including long-term monitoring.

That will likely require yet another city ordinance.

But we expect construction may start as early as 2029. And with that, if there's any general discussion or legal questions, we could take those questions.

I'd love to give Laura opportunity to say anything.

Thank you, Dave, for that.

And then after that, then I'll jump to Brian Goodnight.

I don't have anything unless you have questions.

Awesome.

Okay.

Awesome.

Brian.

Thank you, Chair.

I just wanted to highlight something that Dave did say, which is that all the costs involved in cleanup activities like this are from utility funds.

So it comes from SPU funds and from Seattle City Light Fund, so it doesn't impact the general fund and typically what we talk about during the budget process.

And they have been planning for those costs for a number of years.

So I just wanted to highlight that point.

Awesome.

Thank you, Brian, for that insight.

I will pause here to see if my colleagues have any questions.

Councilmember Kettle or Councilmember Strauss?

Councilmember Strauss?

Yeah, thank you.

No questions at this time simply because we had this same body of work before this committee a few months ago.

No, the one you had before was for the Lower Duwamish.

Correct.

Sorry.

And this is for the East Waterway.

This is why I love Laura.

It is all a super fun site cleanup in the eyes of the city.

And in that process, Laura, I was really humbled and honored to have the opportunity to ask you so many questions and really get into the dirt, the mud, the muck, however you want to call it.

So just in the interest of time today, I'm not going to ask additional questions because we had a lot of questions and answers before.

And what I love is that nuance that I said, this body of work, and Laura corrected me that that was the other side of Harbor Island.

All that to say, Dave, please make sure that there is a statue of Laura somewhere along this waterway.

Seriously.

I mean, because you have shepherded this work in so many ways.

I don't want to say from start, and I'm not going to say to finish, but really without you, Laura, this wouldn't be possible.

Well, thank you very much, Councilmember.

I'll second that.

I've been working with Laura now for almost 20 years, and it's been a joy.

I think that is something statue could be in the budget process with our budget chair, right?

Okay, awesome.

Put you on the spot there, Councilmember Strauss.

Councilmember Kettle.

Thank you, Chair Hollingsworth.

And yes, I second Councilmember Strauss's point, and maybe he'll be authoring a proclamation or something, I think.

Just a quick question.

Thank you.

I understand the dynamics here.

I've been in the area, although I think I'm scheduled, or there's discussions about scheduling from the water tour of this area.

One quick question.

Separate but related, the SOTA wet weather treatment facility timeline, is that still on track?

And how does that, does that have any impact?

Do they influence each other in terms of Scheduling or anything along those lines?

The two projects are in, so this is the King County, the wet weather treatment plant that the county's looking to build.

They're on separate tracks, and so not interdependent on each other, but that project is on track right now, from my understanding.

OK, thank you.

Awesome.

Thank you.

And I see on here that we are voting on this.

Possible?

Yeah.

Okay.

Awesome.

I see two them.

Okay.

Yes.

So I'm going to move.

First of all, thank you for your presentation.

Dave, Laura, thank you.

You're the best.

I'm going to move that the committee recommend passage of Council Bill 121043. Is there a second?

Second.

Awesome.

It's been moved and second to recommend the passage of this bill.

Clerk, will you please, I'll call the roll.

Council Member Kettle.

Aye.

Council Member Strauss.

Chair Hollingsworth.

Yes.

The motion carries and the committee recommendation that the bill pass will be sent to Tuesday, September 2nd, 2025, City Council meeting.

Thank you all for being here.

Really appreciate it.

I know Council Member Strauss said it best that we did a deep dive about the lower Duwamish River cleanup.

This is the other side.

So we know it's a big site.

So thank you all so much.

Item number 13 into the record, council bill, I'm gonna read it into the record, 121050. It's an ordinance relating to Seattle Public Utilities authorizing the general manager, chief executive officer of Seattle Public Utilities to execute the first amended and re...

I can't read.

Restated contract between the City of Seattle and its long-term full and partial requirements contract holders for supply water and authorizing the withdrawal of funds from Water Fund Revenue Stabilization Subfund.

This is for briefing and discussion, and I see possible vote.

Thank you all.

Go ahead, Director Lee.

Thank you.

Thank you for bearing with the marathon of items.

No worries.

This item really concerns our regional drinking water responsibilities.

So in addition to serving City of Seattle customers, Espeer provides drinking water to about 700,000 people who live in the broader King County area.

And they are who we wholesale water provide to.

This next proposed ordinance would authorize SPU to execute amended contracts with 16 cities and water districts that we serve.

Now, I do want to pause here and say that whenever you have a regional contract like this that includes 16 different partners, it's incredibly challenging to get to consensus on.

And this has been a multi-year effort.

And I would say it's a testament to our strong team that we've been able to achieve 100% consensus from all 16 cities and water districts on an extension to our 40-year contract.

So with that, I'd like to hand it off to Alex Chen, our Deputy Director of SP's Water Line of Business, who will lead this briefing.

Okay, thanks, Andrew.

So today we'll give you a little bit of background.

And...

An overview of the wholesale contracts as well as the specific amendments being proposed today on which subset of those contracts and go through a little bit of the details.

And so This graphic here shows some of the complexity involved.

When we say we serve 1.6 million people, almost half of those are represented by people not living in the city of Seattle.

And so we value the relationships we have with the people.

Residents, businesses in Seattle have equal value in the relationships of people living outside of Seattle, delivering Seattle water to them.

And so this map shows lots of different colors here.

We're going to focus in 16 cities and water districts that are called the full or partial water customers.

They're shown here in this orange color.

And those cities and districts are called full and partial customers because we, Seattle, provide either full, 100 percent of their current and future water needs, or partial.

They have some water that they provide independently of Seattle.

We provide the rest.

The full and partial customers, the revenue from these customers is on the order of about $30 million per year.

And like Andrew said, the relationships do matter quite a bit.

So for all of the customers on this list here, we have monthly meetings to discuss issues of importance, understand what they view as important, look at transparency, and provide them the information, answer their questions.

I think we've done a pretty good job with that.

60 or 70 years ago when contracts first started, that wasn't always the case, but this is something we have focused on and worked on for the last 10 or 20 years to improve those relationships to the point they're at now.

Like Andrew said, it's been a long journey to get to this point where we're ready to sign some contract amendments here.

And these full and partial contracts, which were signed 25 years ago, they're 60-year contracts expiring in 2062. And those contracts at the time of signature had a provision to look every 20 years at potential amendments here.

That first amendment opener began five years ago, right at the beginning of the pandemic.

And so between the pandemic and dealing with 16 individual water districts and cities with individual interests, needs, questions, it has taken us that long, five years, to get to this point here.

We're pretty confident that all 16 customers feel good about this relationship and the place that we've gotten to, and we're ready to sign amendments.

Now there's three general categories of the amendments that we tried to focus on.

One is administrative, bringing the contracts into 2020, 2025, rather than the 2000 where they're now outdated.

We'll spend more time talking about the major provisions, contract extensions, and stranded costs and billing credits, which I'll define in a minute, and then some of the finances.

So in terms of The substantive provisions.

The contract term.

So like I said, it was a set of 60-year contracts.

And when we sell municipal bonds for capital projects, the rating agencies are always interested, do you have revenue coming in from retail and wholesale customers?

How reliable is that?

And we've been able to say, well, we have 60-year contracts with wholesale customers.

Well, starting 2032, we'll be able to say we have 30 years more remaining, but we don't know exactly what's going to happen after that because the contracts aren't specific.

So with these amendments, what we've proposed is automatic 10-year extensions, which will give both Seattle and the wholesale customers better sense of certainty with things like bond rating agencies, future water supply, greater certainty as we get closer to 2032, Moving towards the end of the contracts in 2062. So automatic 10-year extensions.

I'd say by far the most controversial provisions that we wanted to discuss in this contract was the return of what's called stranded cost protections.

What that means is with stranded cost protections, it means is if a wholesale customer wanted to leave the Seattle system, they would have to pay their way out of the system so that their costs wouldn't be given over to remaining contract holders in Seattle.

Those stranded cost provisions were in place in the 60, 70 years ago when the contracts first got started.

You may ask, well, why did Seattle, how did that change?

Seattle actually was working with customers about 20, 25 years ago when we renegotiated this contracts in the timeframe of, we were looking at, there's a lot of population growth.

We were a little worried that we'd run out of water We were starting up an aggressive water conservation program, but we weren't sure how far that was going to take us.

And we were seeing these stranded cost provisions as a potential impediment.

We were looking at people trying to incentivize them or removing disincentives from them leaving at the time.

Now, of course, 25 years later in the future, we can say that probably isn't something we would be doing now because the conservation program's been very successful.

We have 30 percent of the system is unused.

We have a lot of capacity in the system.

And we'd like to return stranded cost provisions back to the system because it is a fair and equitable way of dealing with people who want to leave.

Some of these customers have choices.

They could be getting water from other places.

And if they were to leave our system, there would be a financial There'd be financial ramifications for Seattle and the rest of the contract holders.

So it's to everyone's benefit to return those stranded cost provisions back to the contracts.

Now, as you can imagine, contract holders didn't really like that idea.

They didn't want to be subject to stranded cost provisions.

As an individual, if you want to leave the Seattle regional system, you don't want to have to pay a penalty in their eyes.

But if you look at the system as a whole, as we try to do with our contract holders, it's a benefit to the system because it allows people to have some certainty with their costs, even if others leave.

It was a pretty contentious set of discussions, and one of the reasons that we have a 5% stranded cost Seattle pays for provision is part of our concession to deal with some of these feelings from the wholesale customers as we went through the discussions here.

Another idea we came up with that took the sting out of these stranded cost provisions returning was in the future.

At some point in the future, we'll need to develop new water supplies.

We think it's not for another 40 or 50 years, but at that time, We could work with customers who have new water supplies, there are a few out there, and potentially look at a system where we could reduce their bills, give them bill credits in order to develop water supplies that would expand the water supply scenarios for all of the whole region here.

So return of standard cost provisions, introduction of future billing credits when water supplies are needed in the future was where we landed, and all 16 customers seem to generally feel like this is an acceptable approach.

In terms of the financials, because these contracts are now nearly 25 years from when they got signed, financial provisions and terms, accounting provisions have gone out of date, and there are a few areas where we're not able to fully charge for the work that we do, and so we want to provide increased flexibility so that we can fairly allocate costs to the region.

So that's one provision.

The other is that the contracts are currently pretty prescriptive.

So we set rates, let's say, three years at a time.

And if we set rates a bit too high, we end up having overpayments from our wholesale customers.

And we're required to pay them all back, not as we go, but at the end of each rate cycle.

And so we'd like to provide a little bit more flexibility to the contracts on how potential over-collections on our part are dealt with.

As it is, we have not done a rate study on the wholesale system for several years.

It's fairly unusual.

Part of it's due to pandemic.

Part of it is due to us collectively with the wholesale customers saying, can we wait to do the next rate study until we finish these contract discussions?

And the contract discussions took several years longer than anticipated.

So it's been seven plus years since the last rate study, and we have accumulated some over collections from the wholesale customers that we need to return to them.

So part of this amendment would be returning those over collections to them via a direct payment.

We have budget for that.

That would come out of our budget revenue stabilization fund.

We've worked with city budget office and council staff to look at those potential impacts.

So our proposed next steps would be to look at September through December for getting council approval, signing these contracts, working with these 16 customers and their own elected boards to make sure they're comfortable with these provisions, and have these amendments done by the end of the year.

I know I went through a lot of detail, five years of discussion fairly quickly.

Are there questions?

Brian, good night.

Do you have any assessments?

Thank you, Chair.

I just want to note, so in addition to approving the agreement, as Alex described, the budget bill, or sorry, the bill does amend the 2025 budget to provide appropriation authority Up to $27 million for the overpayment returns, as described.

Interestingly and appropriately, the bill also has a proviso.

It imposes a proviso on itself.

So those funds can only be used for that purpose.

So that's what they're for.

They do come out of the water fund revenue stabilization account.

So the overcollections in prior years are funding the returns.

It's a very kind of clean budgetary action.

But the returns would happen after all the Utilities or cities have signed the agreement.

So the appropriation authority does have an automatic carry forward into 2026, because that's likely when the funds would actually be dispersed.

And because of all that budget amendment, the bill would require three quarters approval by the council at full council when it gets there.

So I just wanted to highlight that for you.

Awesome.

Thank you.

Thank you, Brian.

That's really super helpful.

And thank you for the presentation.

It was a lot.

I'm not going to lie.

So thanks for recognizing that.

Councilmember Strauss.

Just same statement as before.

Need to meet and discuss this before I'm comfortable voting.

Thank you.

Awesome.

Thank you, Council Member Strauss.

I don't look to my right.

Council Member Kettle doing a time check.

We're at 4.06.

I know I've asked both of you to put some more time, I mean, to, and so I appreciate you all amending your schedules and being super flexible.

We have one more presentation.

Council Member Kettle.

Just a quick question.

I recognize the long-term pieces here.

Of course, doing rates.

We were just talking about this with my reference to the wastewater.

Always better, even if it's in-house.

But my question is, you talked about capacity.

And which had me thinking about, it's funny how I have conversations about this water.

This is another place I need to visit.

My staff has been, but I have not been able to get my calendar to work, and I really do want to do it.

Partly because of the dinner conversations where people are talking about water, and they're surprised.

And we have such a different System compared to most of the country.

I mean, we're very unique and very lucky.

Which leads me to my question is these are long term, but we're in a new world now where things are happening quicker with climate change.

You know, things are changing.

And are we counting for that in terms of, you know, With these long-term pieces, we could have these impacts happening at a quicker rate, and we need to be able to flex.

I'm happy to hear that we have the excess capacity, but do we want to just ride that, or do we want to be mindful of this dramatic change that's happening with climate change?

And how it may impact, which I have no clue, but I see these two pieces and they're not congruent.

It's a good question.

We've been studying climate change impacts for about 25 years now.

We've gone through three or four rounds of study with computer models getting better and better each time.

And I think the high-level answer is that the 30 percent excess capacity we have in the system, there is some degree to which we should be worried about that over the next 40 or 50 years.

That being said, the last couple of rounds of model results show that by improved operational flexibility, we can cover the climate change impacts.

But we still should be worried about that and still should continue studying those impacts so that we understand that they are out there and they are worth worrying about so that, you know, if it's 30 percent now, will it be 20, 15 percent in the future, and what point will that start to hit?

So it is something we continue to take very seriously, but I don't have a good answer for you because the models are not super predictive.

They aren't, like, You know, so precise that we can say, as of this year, we lose this much capacity.

We are trying to figure out what that means in terms of our future planning.

Okay.

Thank you for that answer.

And, oh, Director.

If I may, I'll just very briefly add, regardless of any world, we are still working quite a bit on conservation.

And we are doing additional studies right now on conservation potential.

And there may be additional that we can save.

In addition to that, we're still also studying supply alternatives.

And so even though we believe that we have good supply for the next 40, 50, even 60 years, we still are doing that work to potentially look at what additional supplies we should be pursuing.

And so both of those things are ongoing efforts.

Well, thank you.

I think the key thing for us is not to be complacent.

And so I appreciate the work.

It sounds like you're on top of it.

I just wanted to ask the question publicly, and I appreciate your answer.

Thank you.

Awesome, thank you.

I will be doing, I'll hold my questions for us to have when we do one-on-one, when we do a briefing, because I have a ton, but we'll navigate that together.

So thank you so much.

Awesome, okay, so we're gonna, the slugfest continues.

Agenda item number 14. Last agenda item, colleagues.

Clerk, please read number 14 to the agenda.

Is this a public safety meeting?

This is.

Agenda Item 14 is Council Bill 121037, an ordinance relating to Seattle Public Utilities, updating side sewer regulations to conform to current standards, clarify existing requirements, allow side sewer fees to be created by the Director's Rule, and update definitions.

For briefing, discussion, and possible vote.

Awesome.

Thank you so much.

Please jump right into the presentation.

Thank you again for your time.

I'm just going to hand it off to Kevin Burrell.

Kevin Burrell Thank you, Committee Chair Hollingsworth, Councilmember Kettle and Strauss.

Appreciate your time today.

My name is Kevin Burrell.

I work for Seattle Public Utilities as a senior policy advisor.

This surgical change in our side sewer code is to do a couple of things.

The purpose of the legislation in front of you today is to make a few small changes, which reflects the recent shift of Moving the side sewer permitting program from SDCI to SPU.

We've been working on this for the better part of a year or so.

The second part of the legislation is about moving the fees that come from side sewer permits out of the code.

Yeah, closer to the microphone.

Moving the fees outside of the code and into SPU's existing director's role where we store other Fees related to construction.

So I'll work through this and hope you have some questions.

So let us not forget for public viewing audience what side sewers are.

So for those of you who have joined online, side sewers are those pipes that customers, both from homes and businesses, convey wastewater or drainage to SBU's main lines in the center of the street.

SPU operates around 1,400 miles of sewer mains, whereas customers are responsible for more than 4,500 miles of private pipes.

So they're an integral part of our collective story in helping protect public health and the environment, helping SPU meet our regulatory requirements, and making sure that we're keeping the product in the pipe, as our crews like to say.

So a little bit about the side sewer permitting program.

What it does simply regulates new development.

It describes the nature and location of how people connect to our system.

And then it also provides oversight for repairs of existing side sewers.

And I just want to clarify that the majority of side sewer permits that are issued each year, which is about 4,000 of them, are for existing side sewers that are already in the ground.

You may know or may have heard that many side sewers are over 100 years old, and I think the average is north of 90 years today for the city.

And the program also provides oversight for repairs of existing side sewers on private property and in the right of way.

So again, going back to the purpose of the legislation, STCI has been our partner in administering the program since 2003, where SBU has delegated its code authority.

But we manage and maintain the wastewater and stormwater collection system, so we're sort of harmonizing department core functions here.

So we assumed the side sewer permitting function to kind of align our purpose and mission.

You might think about it in geologic terms.

A new project gets issued a building permit and a new side sewer, and that's maybe month one.

And then SPU holds that relationship for the next century because side sewers are in the ground for that long.

So this is really to be a resource for our customers, provide better service, have great access to existing sites for assistance programs that we have for our customers.

But to do this, we need to change the authority in the code to point it back to SBU.

What you see on the right is actually a preface for the next slide.

This is actually one of SBU's main lines that have been filled with concrete slurry by a bad market actor.

And so I'll talk about what we're doing to resolve that moving forward.

So again, I want to clarify the director's authority.

So permitting will be done by SBU.

In fact, it's already begun, and customers today shouldn't have noticed a change in operations at all or service.

The other noteworthy thing that we're going to do is restart the registered sites or contractor program.

It's important for those contractors who are doing work in the right of way to have a baseline level of understanding of what the safety requirements and what SBU requires to do work in the right of way.

For both public health and also protection of workers, but also to not damage our pipes.

As I noted in the previous slide, bad market actor did something to our pipe by filling it with concrete.

So that will start up again here in the next year or so.

And then just to close, the last thing, we're going to, as I mentioned already, we're going to relocate the site to our permit fees.

This will add some consistency.

A lot of SPU's construction-related charges are in a director's rule, finance 220.2.

The fees that are in the code will move to that director's rule, and that will give our staff at SPU and finance and rates a chance to update them as needed.

We don't have any plans to update them, though.

So that's it for this quick surgical kind of update to the side-through code in order to complete the transition of the side-through permitting program.

Thank you.

I really appreciate you breaking that down for us.

I will pause here, because I know we can open it up to questions regarding this.

And from my understanding, this is something that we're considering September 10th meeting.

Oh, Brian, good night.

Sorry.

Mr. Good Night.

That's OK.

Thank you.

I would say, in terms of consideration, it's up to the The comfort level of the community members, it was listed as possible vote today if you would like to take action.

The one comment I wanted to make is just that this is consistent with decisions that the council made during the 2025 adopted budget process.

So at that time, 10 staff were transferred from SDCI to SPU.

The budget also added an additional eight FTE to SPU to perform this work.

Part of that was for this Registered Sides Sewer Contractor Program.

So I just wanted to let you know this does tie back to decisions the council has already made.

Awesome.

Thank you, Brian.

I will look to my left or right to see if we have any questions.

I know that I'm not comfortable voting on this just yet and would like to punt this to September 10th meeting just so we can make sure that all committee members get briefings and feel comfortable.

So I will pass it off.

Council Member Strauss, did you have anything at all?

Yeah, just real quick.

I've got a lot of budget questions for you.

You made some references to fees going into director's rules.

I think that that's probably common language within the department that doesn't transfer into budget world.

And so this is something that I do need to have a meeting before feeling comfortable voting on, despite us taking these previous budget actions.

If you are able to go back to slide two, I do have a trick question for you.

Where does the side sewer begin?

Edge is a building.

And in the building or within the envelope of the building, it's King County Plumbing and Plumbing Code.

That's not my understanding what the code says.

So this does require much, and so let's dive into this a little bit more deeply.

I do want to confirm that this is to replace or repair an existing side sewer.

Is this also to put in a new side sewer?

Correct.

We're updating the site sewer code.

We're not changing any of the language about policy and what the code currently provides for new construction, redevelopment, or repairs of existing site sewers.

This is simply pointing the existing authority back to SBU to do the permitting.

So it's no change in how it works, and the customers wouldn't notice a difference in permitting times or schedule.

No policy change at all.

Copy.

Definitely need a longer discussion.

I really appreciate all this work because it does make more sense to have it in SPU, which is why we have been going on this long arc for such a long time.

Just feeling a little jammed by all 39 wonderful and amazing departments.

She said it so nicely.

Thank you.

Thank you, Councilmember Strauss.

Do you have any words, Councilmember Kettle?

Thank you, Chair Hollingsworth.

I will just say that I really appreciate what we're doing here.

This is about cleaning up the lines.

There's a lot of little areas that we're doing this, and you noted the budget in alignment and so forth.

But as my colleague said, just to cross T's and dot I's.

But overall, I'm in support of, so thank you.

Awesome.

I don't know if you have any final comments at all.

Awesome.

Well, looking forward to getting briefs behind the scenes to answering questions.

I can't begin to tell you how many times I have learned about all of the wonderful work that Seattle Public Utilities does, side sewers, wastewater, clean water, everything in between, solid waste.

It's a lot.

All right, so really appreciate all your help and time, and thank you all for being here.

Y'all had a lot of agenda items.

I wanted to throw that a lot.

That's okay.

Okay, so we're at 420, my favorite time right now.

No, it's 420. I see the clock, 420. Okay.

Awesome.

Thank you.

So, real point of privilege really quick.

My mom's watching.

Congratulations.

Happy anniversary.

My parents have been married for 42 years today.

So, people are clapping for you.

Congratulations.

Dad, God bless you.

You made it, Dad, with Mom.

So just wanted to say that.

And second, I have in the audience, I went to school with my guy, Ronald.

He is in the audience today and with his friend Donald as well, Ronald Donald.

And just really appreciate him being here and had great times with him in college.

So thank you for being here, my friend.

Love you.

With that, thank you, everyone.

Thank you to the committee colleagues for all your work today.

With that, we have no other items of agenda for today.

And if there's no further business, this meeting will adjourn.

And this concludes our August 13th meeting of the Parks Public Utilities Technology Committee.

Our next meeting after council recess is Wednesday, September 10th.

That will be at 2 p.m.

Hearing no further business, we are adjourned.

Thank you.

Thank you, Chair.