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Home My WebLink AboutCOW 2009-03-09 Item 4B - Ordinance - Amend Gambling Tax Ordinance for Non-Profit OrganizationsCAS NUMBER 09-032 S )NSOR'S SlU;MMARY' Fund Source: Comments: MTG. DATE 03/09/09 MTG. DATE 03/09/09 04/06/09 09-03 C. \1'I;GORI" Discussion U Motion Altg Date 03/09/09 Mtg Date COUNCIL AGENDA SYNOPSIS Initials Meetth Date Prepared by 1 Mayor's review 03/09/09 EB 04/06/09 EB ITEM INFORMATION ORIGINAL AcI;ND,A D1vi'i MARCH 9, 2009 A( I;ND,\ hli;niTrrl,F Proposed amendments to Gambling Tax Ordinance regarding charitable and non- profit organizations illtg Date Resolution Ordinance !Biel Award 1 1 Public Hearing 1 1 Other Alts Date 04/06/09 Altg Date Council review r1 SPONSOR Council Mayor Adm Svcs DCD Finance n Fire 1 1 Legal n P &R n Police n PIV F &S Cmte Alltg Date Mtg Date The proposed amendments are intended to provide greater clarity regarding both the definition of non profit organizations and the eligibility of those agencies applying for grants. RI:\'1IAVI•;D BY COW Mtg. n CA &P Cmte n Utilities Cmte Arts Comm. I I Parks Comm. DATE: 02/03/09 03/03/09 RECOMMENDATIONS: SPONSOR /ADMIN. COMM-II1"I`EE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE ENPI?NDI "1'URI? RI AMOUNT BUDGETED $0 RECORD OF COUNCIL ACTION ITEM No. Transportation Cmte Planning Comm. APPROPRIATION REQUIRED ATTACHMENTS Informational Memorandum dated 2/18/09 Email correspondence from Assistant City Attorney, dated 1/21/09 Ordinance in draft form 2007 -2008 Tukwila Grants Minutes from the Finance and Safety Committee meeting of 2/3/09 3/3/09 TO: City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee Jim Haggerton, Mayor FROM: Evie Boykan, Human Services Manager DATE: February 18, 2009 SUBJECT: Amendments to Gambling Tax Ordinance #2150 ISSUE The proposed amendments waiving the gambling tax for charitable and nonprofit organizations create more clarity around eligible non profits and state definition of charitable non profits. BACKGROUND In 2007, Council approved ordinance 2150, waiving the gambling tax for charitable and nonprofit organizations. The Seattle Jaycees, one of the charitable organizations, established an application process for nonprofits delivering services to the Tukwila community. DISCUSSION The current language identifies charitable nonprofit organizations located in the City whose purpose is to provide programs or facilities for meeting the basic health, education, welfare or other needs of the residents of the City. Since several recipients of the grants are providers of services in Tukwila, but are not located in Tukwila, clarifying language could offer more inclusivity for those nonprofits that are serving our population but not located in the city. This expansion would provide a greater pool of applicants for the Jaycees to choose from. Reportedly, there were quarters in 2008 that had inadequate numbers of applicants. Upon City Attorney review, the City's code should be further amended to add references to RCW 9.46.0209, the state legislature's definition of the term "charitable non profit organization" since the City's code does not reference this in TMC 3.08.030. See attached memo from Assistant City Attorney Kari Sand. At the February 3, 2009 Finance and Safety Committee, the members requested that a representative from the Seattle Jaycees attend a Finance and Safety Committee meeting to answer questions. A representative will be present at the March 3, 2009 meeting. RECOMMENDATION The Committee is being asked to forward this item for consideration at the March 9, 2009 Committee of the Whole Meeting and subsequent April 6, 2009 Regular Meeting. ATTACHMENTS Email from City Attorney's Office, dated 1/21/09 Draft Ordinance with identified changes 2007 -2008 Grant Recipient List W: \2009 I nfoMemos \I nfoMemoJaycees2.doc (01/21/2009) Evelyn Boykan Re: Gambling Tax Amendment From: "Kari Sand" <KARI @kenyondisend.com To: "Evelyn Boykan" <eboykan @ci.tukwila.wa.us Date: 01/21/2009 3:43 PM Subject: Re: Gambling Tax Amendment Attachments: Ord Gambling Tax Waiver for Nonprofits.doc "Shelley Kerslake" <skerslake @ci.tukwila.wa.us CC: Hi, Evie- Attached is a draft ordinance reflecting the code amendments recommended to expand non profit organizations eligible to receive gambling tax revenues to those located outside the city provided they "serve" residents of the City, instead of only those inside the City. Thus, a wider pool of non profits will be eligible to receive the gambling tax revenues. Please also note that the City's code should "charitable non-profit organization," rganizat on references since the City's code does state legislature's definition of th otherwise define the term even though ased o�dm states reveew, the term "charitable haritable defined in TMC profit organization and "as defined in TMC 3.08.030. Based Y not actually defined anywhere in Chapter 3.08 TMC, so I recommend amending the City's code to add cross references to the definition of a "charitable non profit organization" found in the RCW. Please revise your "Information Memorandum" e o, n my deleinstead. the reference to Amy Pearsall who, as you know, is no longer with our firm and you Please feel free to call or e -mail me if you have any questions or require any further assistance with this. -Kari Kari L. Sand Kenyon Disend, PLLC The Municipal Law Firm 11 Front Street South Issaquah, Washington 98027 425/392 -7090 phone 425/392 -7071 fax Kari @KenyonDisend.com Page 1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; AMENDING ORDINANCE NO. 2150 §1 (PART) AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 3.08.030, "GAMBLING ACTIVITIES TAX RATES," RELATED TO THE WAIVER OF GAMBLING TAX FOR BONA FIDE CHARITABLE AND NON PROFIT ORGANIZATIONS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. DAFT WHEREAS, the City desires to encourage charitable and non profit organizations conducting certain gambling activities in Tukwila to donate to charitable, non profit organizations serving the Tukwila community; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Amended. Ordinance No. 2150 §1 (part), as codified at Tukwila Municipal Code 3.08.030, "Gambling Activities Tax Rates," is hereby amended to read as follows: 3.08.030 Tax Rates A. Pursuant to RCW 9.46.110 and RCW 9.46.120, as amended by the Laws of Washington, effective July 27, 1997, there is levied upon all persons, associations and organizations who have been duly licensed by the Washington State Gambling Commission, as authorized by law, the following tax: 1. To conduct or operate any bingo games and raffles, a tax rate of 5% of the gross revenue received therefrom, less the actual amount paid by such person, association or organization for or as prizes; 2. To conduct any amusement game, a tax rate of 2% of the gross revenue received therefrom, less the actual amount paid by such person, association or organization for or as prizes; 3. For the conduct or operation of any punchboards or pulltabs, a tax rate of 5% of the gross receipts from such activities for commercial stimulant operators (taverns, restaurants, etc.); and a tax rate of 10% on the gross receipts less the amount paid out as prizes for charitable or nonprofit organizations; 4. For the conduct or operation of any premises or facility used to play social card games, a tax rate of 20% of the gross receipts received therefrom; 5. Any public card room operated as a commercial stimulant, a tax rate of 10% of the gross receipts received therefrom. B. Non Profit Organizations. 1. No tax shall be imposed under the authority of TMC Chapter 3.08 on bingo or raffles when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in TMC Chap`ar 3.98, RCW C: \Documents and Settings \All Users Desktop Kelly \MSDATA Ordinances \Gambling Tax Rates.doc 3/4/2009 Page 1 of 2 9.46.0209, which organization has no paid or management personnel, and has gross income from bingo and raffles, or any combination thereof, not exceeding $5,000 per year, less the amount paid for or as prizes. 2. The Finance Director may waive the tax due each quarter from a bona fide charitable or nonprofit organization as defined in TMC Chapter 3.08.030, RCW 9.46.0209. This waiver may occur only if the charitable or nonprofit organization demonstrates by clear and convincing documentation that an amount equal to at least 70% of the tax due the City, as computed pursuant to TMC 3.08.030, will be donated to charitable nonprofit organizations located in serving the City whose purpose is to provide programs or facilities for meeting the basic health, education, welfare, or other needs of the residents of the City. Failure to donate at least 70% of the tax due the City will result in revocation of the waiver and the disqualification of the bona fide charitable or nonprofit organization to receive a waiver for future tax payments. Section 2. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 3. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2009. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: C: \Documents and Settings \All Users\ Desktop \Kelly \MSDATA \Ordinances \Gambling Tax Rates.doc 3/4/2009 Page 2 of 2 Name of Organization 1 Quarter Tukwila Community Schools Collaboration (2006) Tukwila Pantry (2006) South Seattle Community College APPLE (2006) Way Back Inn (2006) American Cancer Society (2006) South Seattle Community College APPLE Tukwila Community Schools Coolaboration Tukwila Pantry Way Back Inn IADT La Mode Fashion Show Special Olympics 1 'Foster HS C Squad Boys Basketball 1Domestic Abuse Women's Network (Tukwila Pantry 'Showalter Middle School 6th Grade Math Showalter Parent Crew Tukwila Pantry (Cascade View Elementary 1 Showalter MS Parent Crew Showalter MS 6th Grade Math Desks Tukwila Pantry Luncheon Scholarships Qadir Raz IADT Ruth Anne Smith -IADT Natalya Yerokin -IADT Total Scholarships Total Grants GRAND TOTAL 2007 Tukwila Grants 4 4 4 4 4 1 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 2 2 2 Amount Requested $8,102.50 $3,200.00 $1,500.00 $4,720.00 $7,200.00 $6,000.00 $8,102.50 $4,000.00 $5,000.00 $5,000.00 $1,950.00 $8,102.50 $844.00 $1,200.00 Amount Approved $500.00 $650.00 $650.00 $3,000.00 $4,720.00 $500.00 $2,000.00 $2,000.00 $500.00 $5,000.00 $2,500.00 $2,000.00 $2,000.00 $2,000.00 $1,607.00 $1,200.00 $4,000.00 $811.00 $630.00 $4,616.00 $200.00 $1,000.00 $1,000.00 $500.00 $2,500.00 $41,084.00 $43,584.00 Reason for Declining 4 attendees Check 1006 1004 1005 1002 1003 1012 1011 1013 1015 1014 1016 2002 1021 1020 1024 1023 1027 20041 10291 1030 1026 1018 1017 1019 Name of Organization Foster HS Wrestling Mats (2007) Literacy Source FHS Senior Class Committee Foster HS Golf Team Intl Academy of Design /Tech (2 parts) Lieracy Source Showalter Middle School SPAA Special Olympics Tukwila Pantry Tukwila Comm Schools Collaboration Tukwila School District Girl Scouts of Western WA 1 Cascade View Elementary Dream On Foundation (Tukwila Pantry 1OTHER Tukwila Community Center Sponsorship 'Susan G Komen Matching Bingo Fundraiser (Alzheimer's Assoc Matching Bingo Fundraiser Total Other Total Grants 'GRAND TOTAL 2008 Tukwila Grants Quarter 4 1 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 2 2 Amount Requested $13,443.93 $5,196.85 $5,480.70 $10,000.00 $1,000.00 $2,500.00 $8,000.00 $1,000.00 $7,500.00 $320.00 $2,750.00 $8,000.00 Amount Approved $13,444.00 $3,900.00 $10,000.00 $4,746.00 $2,750.00 $2,750.00 $1,000.00 $500.00 $600.00 $2,100.00 $37,590.00 $39,690.00 Reason for Declining No budget/incomplete. Other organizations selected Need before selections Not received on time Need before selections Other organizations selected Need before selections Other organizations selected Need before selections No budget Check I 20061 276914 2007/2008 2009 2012 2013 2014 2005 2010 FINANCE AND SAFETY COMMITTEE Meeting Minutes February 3, 2009, 5:00 p.m.; Conference Room #3 PRESENT Councilmembers: Pam Linder, Chair; Joe Duffle and De'Sean Quinn Staff: Shawn Hunstock, Jim Morrow, Barbara Saxton, Christy O'Flaherty, Mary Miotke, Lori Sutter, Rhonda Berry and Kimberly Matej Guests: Chuck Parrish CALL TO ORDER: Chair Linder called the meeting to order at 5:05 p.m. I. PRESENTATIONS No presentations. City of Tukwila Finance and Safety Committee II. BUSINESS AGENDA A. Amendments to Gambling Tax Ordinance: Charitable and Non Profit Organizations Staff is seeking full Council approval of to amend the City's current Gambling Tax Ordinance No. 2150 to expand the definition of eligible non profit and charitable organizations. Currently, Ordinance No. 2150 waives the gambling tax for charitable and non profit organizations located within the City of Tukwila. The amendment will expand the eligibility requirements of charitable and non profits to include organizations that provide services to the Tukwila community, rather than limiting it to only those organizations located within City limits. According to the amendment, the gambling tax is waivered when the non profit or charitable organization donates at least 70% of the tax due to charitable or non profits serving the City of Tukwila. Additionally, the amendment will reference Revised Code of Washington (RCW) 9.46.0209, the state legislature's definition of the term charitable nonprofit organization, which is currently not included in the Tukwila Municipal Code. The reference is recommend by the City Attorney and is intended to bring greater clarity to the term charitable nonprofit organization. Delay to full Council until representatives from Jaycees are able to attend a Committee meeting in which information as set forth in the ordinance amendment can be clarified. RETURN TO COMMITTEE AT A LATER DATE. B. Records Storage Facility Lease This item is returning to Committee from the January 20 Finance Safety Committee meeting. Staff is seeking full Council approval to enter into a lease contract with Sabey Corporation in an amount not to exceed $311,268 (terms to be negotiated) for a five -year lease of a record storage facility at Intergate.East Building 1 in Tukwila. Additional funding is requested in the amount of approximately $72,000 for shelving, fence and gates needed for the facility distributed as follows: $41,783 to Easyup Storage Systems for shelving work. Approximately $30,000 for fencing and gates, vendor to be determined. This leased facility will serve as the new location for the storage of City records. The current location at 12026 42n Avenue South is inadequate in storage capacity and lacks improved amenities such as fire protection. The new facility will allow for 24 -hour accessibility as well as the protected (i.e.: security and FINANCE AND SAFETY COMMITTEE Meeting Minutes March 3, 2009, 5:00 p.m.; Conference Room #3 PRESENT Councilmembers: Pam Linder, Chair; Joe Duffle and De' Sean Quinn Staff: Shawn Hunstock, Evie Boykan, Nick Olivas, Mary Miotke, Phi Huynh, Rhonda Berry, Dave Haynes and Kimberly Matej Guests: Tara Winkler, Seattle Jaycees; Linda Smith, Seattle Jaycees and Kendra Demuth, Seattle Jaycees CALL TO ORDER: Chair Linder called the meeting to order at 5:00 p.m. I. PRESENTATIONS No presentations. City resident; and Must be an authorized representative of student government; and Must be nominated by the high school government organization, and Must be maintained by the student government body. Cit y of Tukwila Finance and Safety Committee H. BUSINESS AGENDA A. Amendments to Gambling Tax Ordinance: Charitable and Non Profit Organizations. This item was before Committee on February 3 at which time Committee members requested that representatives from the Seattle Jaycees attend so that information any questions pertaining to the proposed ordinance amendment can be clarified. The Seattle Jaycees initiated the request for waivers as outlined in the amendment, and attended tonight's meeting to explain their service and grant opportunities further. Grant application tracking, approval and unsuccessful applicant response was explained. Jaycees representatives inquired if certain organizations and/or programs would be eligible for funding through the Jaycee's such as the D.A.R.E. program or Tukwila Community Center programs. Evie Boykan stated that since this is an officially administered/tracked funding mechanism through the City, such funding awards could be considered a conflict of interest. Shawn Hunstock suggested that the best way to determine an applicant's funding eligibility from the Jaycee's would be to ensure the requirements of the Revised Code of Washington's (RCW) 9.46.0209 definition of the term charitable nonprofit organization are met. Jaycees representatives expressed their appreciation for the community partnership with the City of Tukwila. As well, Committee members were complimentary of the Jaycees continued service. The Committee is in support of the amending the City's current Gambling Tax Ordinance No. 2150 to expand the definition of eligible non profit and charitable organizations (see Committee minutes dated February 2, 2009, for additional information). UNANIMOUS APPROVAL. FORWARD TO MARCH 9 COW FOR DISCUSSION. B. Ordinance Amendment: Community Oriented Policing Citizen's Advisory Board Staff is seeking full Council approval to amend Ordinance No. 2082, relative to the requirements of the high school student representative position on the Community Oriented Policing Citizens' Advisory Board (COPCAB). Currently, the ordinance requires that the high school student representative meet the following criteria: