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Home My WebLink AboutCOW 2009-03-09 COMPLETE AGENDA PACKET Tukwila City Council Agenda COMMITTEE OF THE WHOLE Jim Haggerton, Mayor Councilmembers: Joe Duffie Pamela Linder Rhonda Berry, City Adm in istrator Dennis Robertson Verna Griffin Joan Hernandez, Council President Kathy Hougardy De'Sean Quinn Monday, March 9,2009,7:00 PM Tukwila City Hall; Council Chambers 1. CALL TO ORDER PLEDGE OF ALLEGIANCE Grace Point Community Church 2. SPECIAL Update on Federal Legislative Issues; PRESENTATIONS Derek Speck, Economic Development Adm in istrator. State of the Tukwila Municipal Court; Kimberly Walden, Municipal CourtJudge and Trish Kinlow, Court Adm in istrator. 3. CITIZEN At this time, you are invited to comment on items not incl uded on this agenda COMMENT (please limit your comments to five minutes per citizen). To comment on an item listed on this agenda, please save your comments until the issue is presented for discussion. 4. SPECIAL a. Bid award for the 2009 Sewer Infiltration and Inflow project. Pg.l ISSUES b. An ordinance amending the Gambling Tax Ordinance regarding charitable Pg.7 and non profit organizations. c. An ordinance amending the composition of the Community Oriented Pg.17 Policing Citizens' Advisory Board. d. An ordinance establishing a Drug Seizure Fund. Pg.31 e. A resolution adopting an identity theft prevention program. Pg.43 5. REPORTS a. Mayor c. Staff e. Intergovernmental b. City Council d. City Attorney 6. MISCELLANEOUS 7. EXECUTIVE SESSION 8. ADJOURNMENT Tukwila City Hall is wheelchair accessible. Reasonable accommodations are available at public hearings with advance notice to the City Clerk's Office 206 433- 1800/TDD 206 248 -2933. This notice is available at www.ci.tukwila.wa.us, and in alternate formats with advance notice for those with disabilities. Tukwila Council meetings are audio taped. CO UNcm AGENDA SYNOPSIS Initials ITEM NO. Meeting Date Prepared by Mayors review I Council review 1 03/09/09 I J I t,4,h° 1 27 1 1 03/23/09 3 1 z4, 4, I ITEM INFORMATION CAS NUMBER: 0 9 03 1 ORIGINAL AGENDA DATE: MARCH 9, 2009 AGENDA ITEM TITLE Bid Award for 2009 Sewer Infiltration Inflow Project CATEGORY ®Discussion El motion Resolution E] Ordinance ®Bid Award ❑Public Hearing Other Mtg Date 03109109 Mtg Date Mtg Date Mtg Date Mtg Date 3123109 Mtg Date Mtg Date SPONSOR Council Mayor Adrn Svcs DCD Finance Fire Legal PAR El Police ®PWI SPONSOR'S This project will repair four sewer manholes due to concrete corrosion. Nine contractors SUMMARY from the MRSC Small Works Roster were asked to submit quotes and two firms responded on February 15, 2009. The low bid of $33,653.73 was from Brike Excavating, who has previously worked for the City with satisfactory results. The Council is being asked to award the contract to Brike Excavating Utilities, LLC. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 02/24/09 RECOMMENDATIONS: SPONSOR/ADMIN. Public Works COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $33,653.73 $75,000.00 $0.00 Fund Source: 402.02 SEWER FUND (PAGE 122, 2009 CIP) Comments: J MTG. DATE I RECORD OF COUNCIL ACTION 03/09/09 1 03/16/09 Council meeting cancelled. 03/23/09 MTG. DATE I ATTACHMENTS 03/09/09 Informational Memorandum dated 2/17/09 Bid Opening Results Vicinity Map Minutes from the Utilties Committee meeting of 2/24/09 3/23/09 vJILA cy y City of Tukwila BUDGET attachments: Bid Results Vicinity Map P:IPROJECTS\A- SW Projects109sw01 I &I 20091Info Memo 021709.doc INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Utilities Committee FROM: Public Works Director DATE: February 17, 2009 SUBJECT: 2009 Sewer Infiltration Inflow Project Project 09 -SW01 Bid Award ISSUE Award bid to Brike Excavating Utilities, LLC for four manhole repairs under the 2009 I I Project. Jim Haggerton, Mayor BACKGROUND Four manholes are to be rehabilitated due to concrete corrosion. Nine contractors from the MRSC Small Works Roster were asked to submit price quotes to the City for four manhole repairs. Only two firms provided price quotes to the City for the projects. Brike Excavating had the low quote of $33,653.73, including sales tax, bonding and insurance. ANALYSIS Brike Excavating has done work for the City of Tukwila in the past and the quality of their work has been satisfactory. Their quote of $33,653.73 is reasonable based on the scope of work. Quote Results Estimate Budget Construction $33,653.73 $40,000.00 $75,000.00 Contingency 10% 3,365.37 4,000.00 0.00 Total $37.019.10 $44.000.00 $75.000.00 Remaining budget will be used on additional 2009 Sewer I &I projects later in the year. RECOMMENDATION Approve the contract with Brike Excavating in the amount of $33,653.73 for the 2009 I I Manhole Repairs and consider this item at the March 9, 2009 Committee of the Whole meeting and subsequent March 23, 2009 Special Meeting (due to cancellation of March 16, 2009 Regular Meeting). 2009 Sewer Infiltration Inflow Project Project 09 -SW01 Mike Cusick, PE 1 (Manhole 39049 2 (Manhole T -12 3 (Manhole 390410 Manhole 390411 BRIKE BASE BID 1 $19,231.661 1 $1,400.001 1 $5,336.661 1 $4,906.661 P: \PROJECTS\A- SW Projects \09sw01 I &I 2009 \BID TAB 09SW -01 sb SALES TAX 9.0% $1,730.851 $126.001 $480.301 $441.60 BID RESULTS February 15, 2009 TOTAL $20,962.511 $1,526.001 $5,816.961 $5,348.26 $33,653.73 PIVETTA BASE BID I $43,361.001 1 $5,329.001 I $12,506.001 1 $18,241.001 SALES TAX 9.0% $3,902.491 $479.611 $1,125.541 $1,641.69 TOTAL $47,263.49 $5,808.61 $13,631.54 $19,882.69 $86,586.33 S 94 PI 128 .S "30 St S 144 8t 0 Tukwila Pky L WI• Blvd y �Llfsl Upland Dr Midland Dr Triland Dr S 180 at m Y Q a y p rop 9-p m® p0 1 5Z3 a mm o ,m om ®e1 2009 1 &I Program Q) c 1111 Foster Green Apartments 1 14' Z CI=IEL, 11664 44th Ave S UTILITIES COMMITTEE Meeting Minutes February 24, 2009 5:00 p.m. Conference Room #1 PRESENT Councilmembers: Kathy Hougardy, Chair; Pam Linder, and Dennis Robertson Staff: Jim Morrow, Bob Giberson, Mike Cusick, Gail Labanara and Kimberly Matej CALL TO ORDER: Committee Chair Hougardy called the meeting to order at 5:03 p.m. I. PRESENTATIONS No Presentations. III. MISCELLANEOUS Meeting adjourned at 5:15 p.m. Next meeting: Tuesday, March 10, 2009 5:00 p.m. Conference Room No. 1. Q J L Committee Chair Approval Minutes by KAM. Reviewed by GL. City of Tukwila Utilities Committee II. BUSINESS AGENDA A. 2009 Sewer Infiltration Inflow Bid Award, Staff is seeking full Council approval to award a bid in the amount of $33,653.73 to Brike Excavating and Utilities, LLC for the repair of four manhole covers. This program, which usually takes place on an annual basis, identifies stormwater inflow and groundwater infiltration into sewer lines. Sewer mains are smaller than stormwater lines and cannot handle a larger load of increased water and will deteriorate on a faster basis. The program did not take place in 2008 due to an overrun in the Westfield Sewer Project; additional funding needed for this project was taken from the infiltration and inflow line item. The 2009 repairs include four manholes which require repair due to water corrosion. The repair will include the concrete structure in the manhole, and is more cost efficient than replacement. UNANIMOUS APPROVAL. FORWARD TO MARCH 9 COW FOR DISCUSSION. B. 2008 4 Quarter Report The Committee reviewed the status of program goals as outlined in the 2008 4 Quarter Report, and asked clarifying questions as appropriate. INFORMATION ONLY. CAS 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: CAS NUMBER 09-033 Act.N11\ Ill ;MT111,l; Amendment to Ordinance #2082 regarding the composition of the Community Oriented Policing Citizens' Advisory Board (COPCAB) C.\"I•I ;CORY Discussion I I Motion Resolution Ordinance 1 Bid Award Public Hearing n Other iVLg Date itiltg Date 04/06/09 Mtg Date tldtg Date Mtg Date SPONSOR 1 1 Council E Mayor 1 1 Adm Svcs 1 1 DCD Finance Fire Legal 1 P&R Police n PW SPONSOR'S SU \1. \RY RI( \'ll.\C•'I ?D BY Fund Source: Comments: MTG. DATE 03/09/09 MTG. DATE 03/09/09 04/06/09 09 -033 Mtg Date 03/03/09 Nitg Date COW Mtg. Utilities Cmte COUNCIL AGENDA SYNOPSIS Initials 1Vleeting Date Prepared by 1 Mayor's review 03/09/09 DH 1 A6- 04/06/09 DH I� ITEM INFORMATION I ORIC; INAI.Ac1IND;\ MARCH 9, 2009 n CA &P Cmte n Arts Comm. F &S Cmte Parks Comm. Council review The Council is being asked to amend the Ordinance such that the provisions relative to the high school student are the same as the business representative, in that living in the City is not a requirement. The position would still be appointed by the Mayor and subject to confirmation by the City Council. DATE: 03/03/09 RECOMMENDATIONS: SPONSOR /ADMiN. Adoption of the ordinance COI\' MFFFEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE ELI'F,NDITURI; RI QUIRFD AMOUNT BUDGETED APPROPRIATION REQUIRED RECORD OF COUNCIL ACTION Transportation Cmte Planning Comm. ITEM No. ATTACHMENTS Informational Memorandum dated 2/5/09 Informational Memorandum dated 3/4/09, requested by Finance Safety Committee Ordinance in draft form Ordinance #2082 Minutes from the Finance and Safety Committee Meeting of 3/3/09 TO: FROM: David Haynes, Chief of Police DATE: February 5, 2009 SUBJECT: Amendment to Ordinance #2082 regarding the composition of the Community Oriented Policing Citizens' Advisory Board (COPCAB) ISSUE The requirement of a high school student position who must be a resident of the City, limits the Board's ability to fill the vacant position. BACKGROUND The COPCAB currently has 7 members: 4 resident representatives, 1 school representative and 2 business representatives. One resident position and one student position have been vacant for over two years. The Board has recently received an application from a high school student, attending Foster High School. The student's residence is SeaTac. DISCUSSION The current Ordinance requires the student position to be: 1) A resident of the City; 2) Occupied by only a duly authorized representative of student government; 3) To be nominated by his /her high school student government organization; and 4) To be maintained by the student government body. RECOMMENDATION Our recommendation is that the high school student position have the same requirements as the business representative in that living in the City is not a requirement. The student representative would not have to be a resident of the City as long as the individual attends school within the Tukwila City limits. The position would still be appointed by the Mayor and subject to confirmation by the City Council. The same terms for initial appointments and all subsequent appointments would apply. The Council is being asked to consider the above change to Ordinance #2082 at the March 9, 2009 Committee of the Whole Meeting and subsequent April 6, 2009 Regular Meeting. ATTACHMENTS City of Tukwila INFORMATIONAL MEMORANDUM MAYOR HAGGERTON FINANCE AND SAFETY COMMITTEE Draft ordinance in strike through, underline format Ordinance Number 2082 Jim Haggerton, Mayor City of Tukwila Police Department An Accredited Agency To: Council of the Whole Memorandum From: David Haynes, Chief of Poli Date: 03/04/2009 Re: Student Position on COPCAB David W Haynes, Chief of Police There is a proposed change to the Community Oriented Policing Citizens Advisory Board (COPCAB) Ordinance that modifies the requirements for students seeking to fill the Student position. The proposed change is less restrictive then the current requirement in that the student would be able to live outside the City of Tukwila while attending a school within the City limits. During the March 3` Finance and Safety Committee meeting a discussion took place as to the requirements for the student position and service on the Board. I was asked to write a brief informational memo reference the student position and what I am looking for in a student representative. As you know the Board is comprised of Tukwila Citizens, Tukwila business members, a school representative, and a student representative. Having worked closely with this board over the years I see its mission as building upon the relationships between the Tukwila community and the Police Department in order to promote a safer community. To that end it is important that the Board members bring relevant information to the table reference the City of Tukwila. The question that was raised during the Finance and Safety meeting was, should the student representative be a student attending a Tukwila school, or could the student be a resident of Tukwila and attend a school outside the City of Tukwila? I believe it is important that the student representative be a student attending a school within our City limits. As stated above in order for the Board to be effective, I need information and input about what is going on in our schools from the perspective of a Tukwila student. A student that is not attending one of our Jim Haggerton, Mayor 6200 Southcenter Blvd. Tukwila, WA 98188 Phone: 206 433 -1808 Pol. Dept. Fax: 206 244 -6181; Admin. Fax: 206 433 -7197; Invest. Fax: 206 431 -3688 schools cannot provide relevant information from the perspective of our Tukwila school community. It is my recommendation that the council approve the expansion of the student requirements keeping in mind that I believe the student should attend a school within our City limits. March 4, 2009 2 DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2082, AS CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 2.39, "COMMUNITY POLICING ADVISORY BOARD," REGARDING THE QUALIFICATIONS OF THE STUDENT REPRESENTATIVE, BOARD COMPOSITION, AND APPOINTMENT TERMS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on February 22, 1994, the City of Tukwila created the Community- Oriented Policing Citizens Advisory Board (COPCAB), which has proven to be a valuable resource in the development of recommendations aimed at community -wide public safety; and WHEREAS, it is the intent of the City that this committee be broadly representative of both the residential and business communities; and WHEREAS. the City Council believes the high school is best represented by any Qualified student currently enrolled within the Tukwila School District appointed by the Mayor and subiect to Council confirmation; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Composition of Board. Ordinance No. 2082, as codified at Tukwila Municipal Code 2.39.020, "Composition of Board," is hereby amended to read as follows: 2.39.020 Composition of Board The Board shall consist of nine members who shall meet the following qualifications: 1. Not less than five of the members shall be City residents, representing residential property owners and renters; 2. At least two members shall be owners or managers of businesses located within the City, providing that, if the business community is unable to fill one of its two positions, a resident may fill one of the business board member positions. 3. One member shall represent the school district(s) within the City; and 4. One position shall be a Tukwila School District student who is currently attending high school within the City. and resident of the City. This single voting position may 132 occupied by only a duly authorized representative of student Section 2. Appointment Terms. Ordinance No. 2082, as codified at Tukwila Municipal Code 2.39.030, "Appointment Terms," is hereby amended to read as follows: C: \Documents and Settings\AII Users Desktop \Kelly \MSDATA Ordinances \COPCAB.doc PH:ksn 2/3/2009 Page 1 of 2 2.39.030 Appointment Terms A. All Board members shall be appointed by the Mayor, with the exception of the pesition, and shall be subject to confirmation by the City Council. B. Initial appointments to the Board shall be made for the following terms: 1. One member of the Board shall be appointed to a one -year term; 2. Two members of the Board shall be appointed to two -year terms; 3. Two members of the Board shall be appointed to three -year terms; 4. Four Three members of the Board shall be appointed to four -year terms. r- nt body. C. All subsequent appointments, except for vacancies and the student representative, shall be four -year terms, provided that members shall remain in office until their successors are appointed and confirmed. D. Vacancies occurring other than through the expiration of terms shall be filled for the remainder of the term of the member being replaced. Vacancies shall be filled in the same manner as initial appointments are filled. E. Members may be removed at will at any time prior to the end of their term by the Mayor. In addition, members who fail to attend three consecutive meetings, regular or special, may be considered to have vacated their positions and may be replaced, as provided for herein. Any member who ceases to have the qualifications provided in TMC 2.39.020, Composition of Board, shall be deemed to have forfeited his or her office. Section 3. 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 4. 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 C: \Documents and Settings\All Users \Desktop \Kelly\MSDATA Ordinances \COPCAB.doc PH:ksn 2/3/2009 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2 City of Tukwila Washington Ordinance No. 02 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING CHAPTER 2.39 OF THE TUKWILA MUNICIPAL CODE, "COMMUNITY- ORIEN "1 ED POLICING CITIZENS ADVISORY BOARD REGARDING THE COMPOSITION AND REPORTING OF THE BOARD; REPEALING ORDINANCE NO. 1729; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on February 22, 1994, the Cite of Tukwila created the Community- Oriented Policing Citizens Advisory Board (COPCAB), which has proven to be a valuable resource in the development of recommendations aimed at community -wide public safety; and WHEREAS, it is the intent of the City that this committee be broadly representative of both the residential and business communities; and WHEREAS, reporting of the Board's activities to the Mayor and Council on an annual basis, rather than quarterly, is deemed sufficient; and WHEREAS, the recruiting of two owners or managers of businesses located within the City has proven to be difficult; NOW, THEREFORE, THE C11 Y COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Community Oriented Policing Citizens Advisory Board. Tukwila. Municipal Code Chapter 2,39, entitled "Community-Oriented Policing Citizens Advisory Board," is hereby amended to read as follows: CHAPTER 2.39 COMMUNITY ORIEN`T'ED POLICING CITIZENS ADVISORY BOARD 2.39.010 Board Established Sections: 2.39.010 Board Established 2.39.020 Composition of Board 2.39.030 Appointment Terms 2.39.040 Compensation 2.39.050 Duties of the Board 2.39.060 Meetings and Procedure There is hereby established for the City of Tukwila a citizens advisory board to be known as the "Community- Oriented Policing Citizens Advisory Board." 2.39.020 Composition of Board The Board shall consist of nine members who shall meet the following qualifications: 1. Not less than five of the members shall be City residents, representing residential property owners and renters; COPCAB 2/17/05 Page 1 of 3 2. At least two members shall be owners or managers of businesses located within the City, providing that, if the business community is unable to fill one of its two positions, a resident may fill one of the business board member positions. 3. One member shall represent the school district(s) within the City; and 4. One position shall be a high school student and resident of the City. This single voting position may be occupied by only a duly authorized representative of student government. 2.39.030 Appointment Terris A. All Board members shall be appointed by the Mayor, with the exception of the resident high school student who shall be nominated by her /his high school student government organization. All Board appointments, with the exception of the student position, shall be subject to confirmation by the City Council. B. Initial appointments to the Board shall be made for the following terms: 1. One member of the Board shall be appointed to a one -year term; 2. Two members of the Board shall be appointed to two -year terms; 3. Two members of the Board shall be appointed to three -year terms; 4. Three members of the Board shall be appointed to four -year terms; and 5. The student representative position shall be maintained by the student government body. C. All subsequent appointments, except for vacancies and the student representative, shall be for four -year terms, provided that members shall remain in office until their successors are appointed and confirmed. D. Vacancies occurring other than through the expiration of terms shall be filled for the remainder of the term of the member being replaced. Vacancies shall be filled in the same manner as initial appointments are filled, E. Members may be removed at will at any time prior to the end of their term by the Mayor. In addition, members who fail to attend three consecutive meetings, regular or special, may be considered to have vacated their positions and may be replaced, as provided for herein. Any member who ceases to have the qualifications provided in TMC 2.39.020, Composition of Board, shall be deemed to have forfeited his or her office. 239.040 Compensation No member of the Board shall receive compensation for services performed. 2.39.050 Duties of the Board A. The duties of the Board shall include, but not be limited to, advising and making recommendations via the Chief of Police on issues concerning public safety and police services within the City, such as: 1. To enhance police- community relations; 2. To review and provide a community perspective and recommendations concerning procedures, programs, and the effectiveness of the police service; 3. To promote public awareness of the City's police services and programs including, but not limited to, business and residential crime prevention programs, safety training, domestic violence intervention, and D.A.R.E.; 4. To hold public meetings from time to time to solicit public input regarding police services and programs; 5. To serve as a liaison between the Police Department and the community; 6. To encourage individuals and community groups to assist the Police Department in the implementation of police programs and services; and COPCAB 2/18105 Page 2 of 3 7. To review and make recommendations concerning such other and further matters as may be referred to the Board, from time to time, by the Mavor, the City Council, or the Chief of Police. B. The Board shall make an annual report to the Mayor and City Council regarding its activities. C. Notwithstanding the duties of the Board as described within TMC 2.39.050A, the Board shall have no power or authority to investigate, review, or otherwise participate in matters involving specific police personnel or specific police related incidents. The Board in no way shall receive or stand in review of complaints initiated against personnel of the Police Department, nor play any role in civil or criminal litigation. 2.39.060 Meetings and Procedure A. The Board shall have at least one regular meeting per quarter on such day of the month and at such time as may be determined by the Board. Special meetings may be held as often as the Board deems necessary. All meetings of the Board shall be open to the public, except as otherwise provided in the State Open Public Meetings Act. All requirements of the Open Public Meetings Act shall be followed by the Board. B. For purposes of conducting the Board's business, exercising its powers and for all other purposes, a quorum of the Board shall consist of five or more members. Any action taken by a majority of those present, when those present constitute a quorum at any regular or special meeting of the Board, shall be deemed and taken as the action and decision of the Board. C. The Board shall elect such officers as it deems necessary in order to conduct its business. The Board shall adopt such rules of procedure as it deems necessary. D. The Board shall tape record or keep minutes of all meetings held and all business transacted. All records of the Board shall be open for public inspection, except those that may be exempt from public disclosure under State law. Minutes shall be distributed, at a minimum, to the Office of the Mayor and the Chief of Police. Section 2. Repealer. Ordinance No.1729 is hereby repealed. Section 3. 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 4. 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 TUKWILA, WASHINGTON, at a Regular Meeting thereof this rdday of c� 1.,(1- .i <7Al 2005. ATTEST AUTHENTICAT ED Ja' n e E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney COPCAB 2/17/05 Page 3 of 3 r- ✓Steven M. Mullet, Mayor Filed with the City Clerk ,'L Passed by the City Council: Published:.,? .-2 GA Effective Date: 3- ll Ordinance Number: T2g 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. City 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: Finance Safety Committee Minutes March 3. 2009 Page 2 This criterion substantially limits the number of students that are eligible to apply for the high school representative position on COPCAB; a position that is often difficult to fill. Staff would like to amend these criteria to reflect similar requirements and guidelines of other COPCAB positions. The change would only require that: The high school representative be a student in the Tukwila School District, and The individual be appointed by the Mayor and confirmed by the Council. This proposed amendment will broaden the Police Department's opportunity to seek out qualified high school students eligible for this position on the Community Oriented Policing Advisory Board. The Committee inquired as to how this would affect the eligibility of high school students interested in serving on COPCAB who live in Tukwila but attend high schools outside the City limits. Staff responded that as with the previous requirements, students not attending school in the Tukwila School District were not able to serve as a student representative; however, they have always and will continue to be eligible to apply for the residential representative positions. Having a student representative actively attending school in the Tukwila School District on COPCAB is essentially to information sharing among members of the Board. Committee Chair Linder suggested additional information be provided for clarification in the memo that is submitted to full Council regarding the purpose of COPCAB as well as the purpose of the student representative. UNANIMOUS APPROVAL. FORWARD TO MARCH 9 COW FOR DISCUSSION. C. An Ordinance Establishing a Drug Seizure Fund Staff is seeking full Council approval of an ordinance that will amend the 2009 -10 Biennial Budget and establish a special revenue fund for the Police Department's drug seizure revenue and expenditure activity. Currently, these funds are accumulated in the General Fund and require manual tracking of revenues and expenses throughout the year. Creating a special revenue fund specifically for this purpose will streamline the oversight process and increase efficiency relative to revenue and expenditure activities. Additionally, this separate fund will be eligible to accrue interest. Committee Chair Liner requested a memo be submitted to full Council at the same time this item goes forth, explaining the current revenue /expenditures balance relative to this account. UNANIMOUS APPROVAL. FORWARD TO MARCH 9 COW FOR DISCUSSION. D. A Resolution an Identity Theft Prevention Program Staff is seeking full Council approval of a resolution adopting an Identity Theft Prevention Program. Originally passed by Congress in 2003, implementation of policies and programs relating to the detection and prevention of identify theft were previously delayed; however, the Federal Trade Commission is now requiring that businesses adopt such programs and policies by May 1, 2009. This consumer protection law is also known as the Red Flag Rule. The Red Flag Rule specifically applies to utility accounts (such as the City's water billing) and any other account where there may be a reasonable risk for identity theft. This resolution will approve and adopt an identity theft protection program for the City which will be administered by Shawn Hunstock. UNANIMOUS APPROVAL. FORWARD TO MARCH 9 COW FOR DISCUSSION. CAS NUMBER: 09-034 AGr;ND.\ I'ri;1r TITLE An ordinance to establish a special revenue fund for the Tukwila Police Department drug seizure fund. C.v Discussion Motion illtg Date 03/09/09 tlltg Date SPONSOR SPONSOR'S SUMMARY BY Fund Source: Comments: If MTG. DATE 03/09/09 03/23/09 Resolution Ordinance n Bid Aavard Public Hearing Other Mtg Date llltg Date 03/23/09 Mtg Date Mtg Date Mtg Date Council 1 1 IVla 1 I Adm Svcs I 1 DCD Finance Fire Le 1 f P&R f Police I f PI-V A special revenue fund is proposed to segregate and account for the yearly accumulation of drug seizure revenues and expenditures from other resources within the General Fund. Council is being asked to approve an ordinance that will: (1) Make transfers from the General Fund of the accumulated drug seizure revenues and expenditures, (2) Establish budgeted revenue and expenditures in the new special revenue fund, and (3) Establish the the new Drug Seizure Special Revenue Fund 109. COW Mtg. n CA &P Crnte F &S Cmte I Transportation Crnte Utilities Cmte I Arts Comm. Parks Comm. If COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by 1 Mayor's review Council review 03/09/09 SH 1 1 nJ1J 03/23/09 SH 1 ITEM INFORMATION c 0 3 I ORIGINAL, AGENDA DATE.: MARCH 9, 2009 RECORD OF COUNCIL ACTION ITEM No. n Planning Comm. DATE: 03/03/09 RECOMMENDATIONS: SP()NS()R /ADMIN. Adoption of Ordinance COMMITTEE Unanimous approval; Forward to next Committee of the Whole COST IMPACT FUND SOURCE ExPI :NDITURI RI ;QuIl I?D AMOUNT BUDGETED $n /a $n /a APPROPRIATION REQUIRED $n /a MTG. DATE ATTACHMENTS 03/09/09 I Informational Memorandum dated 02/18/09 Informational Memorandum dated 3/4/09, requested by Finance and Safety Committee Ordinance in draft form Copy of Ordinance No. 2221 to be amended Minutes from the Finance and Safety Committee meeting of 03/03/09 TO: FROM: Shawn Hunstock, Finance Director DATE: February 18, 2009 SUBJECT: Ordinance to Establish a Special Revenue Fund for the Tukwila Police Department Drug Seizure Fund ISSUE City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee Jim Haggerton, Mayor Drug seizure funds are now comingled with other funds in the General Fund. It is an administrative burden to manually track the revenue and expenses each year. The funds also are not receiving interest accruals, which could be used for similar law enforcement activities. BACKGROUND In order to properly account for the seizure funds as well as for the expenditure of those funds, a special revenue fund is proposed to segregate these funds from other resources. Since the use of these funds is limited to drug enforcement related expenditures, a special revenue fund is the appropriate mechanism to account for this money. DISCUSSION In order to streamline the oversight process and to more appropriately account for the Tukwila Police Department's drug seizure revenue and expenditure activity, it is necessary to create a new special revenue fund (109). The attached draft ordinance will establish a new special revenue fund for the Tukwila Police Department Drug Seizure Fund as follows: General Fund (000): Revenue: Drug Seizure Revenue #000.369.300.00.00) Total Revenue Expenditures: Expenditure, Transfers Out Expenditure, Estimated Ending Fund Balance (Decrease) Total Expenditures Drug Seizure Special Revenue Fund (109): (200,000.00) (200.000.00) 154,646.65 (354,646.65) (200.000.00) Revenue: Transfers In 154,646.65 Seizure Revenue 200.000.00 Total Revenue 354.646.65 Expenditures: Operations 170,000.00 Estimated Ending Fund Balance 184,646.65 Total Expenditures 354.646.65 INFORMATIONAL MEMO Page 2 Upon adoption of an ordinance establishing the new fund, the Finance Department will transfer the appropriate budgeted amounts from the General Fund. The special revenue fund will also accrue interest which may be used for similar drug enforcement purposes. RECOMMENDATION The Council is being asked to consider the draft ordinance amending the 2009 -2010 budget and establishing the special revenue fund at the March 9, 2009 Committee of the Whole Meeting and the March 23, 2009 Special Meeting. Consideration of this issue at the March 23, 2009 Special Meeting will allow Finance to establish the fund right away and begin regular interest postings to the new fund. ATTACHMENTS Draft copy of proposed ordinance to establish a new special drug seizure revenue fund. Copy of Ordinance No. 2221 which adopted the current 2009 -2010 biennial budget. City of Tukwila Police Department An Accredited Agency Memorandum To: Council of the Whole From: David Haynes, Chief of Police Date: 03/04/2009 Re: Seizure Account David W Haynes, Chief of Police The purpose of this memorandum is to provide a brief outline as to where drug seizure money is generated. This memorandum was requested during the March 3 Finance and Safety Committee meeting. This memorandum is short and in no way provides all the detail required to manage drug seizures. There are three basic enforcement areas where property or currency is seized. Regardless of how the funds were seized all seized funds go through a seizure process prior to conversion for Police Department use. The three general areas are Patrol Officers, Tukwila Anti Crime Team Detectives, and Valley Narcotics Enforcement Team (VNET). Patrol officers play a vital role in drug enforcement in our community. Although the patrol officers are not primarily looking for drug violations they often encounter this crime through self initiated contacts or dispatched calls. When the patrol officer encounters a drug related incident they are authorized to make seizures. Our Tukwila Anti Crime Team Detectives spend a good portion of their time looking for and arresting individuals who are engaging in drug activity. These officers operate in plain clothes and drive civilian type vehicles when working. This unit has a higher level of expertise and focus when it comes to drug crimes. This unit also initiates seizures of property and currency as well as track our forfeiture process. Jim Haggerton, Mayor 6200 SouthcenterBlvd. Tukwila, WA 98188 Phone: 206 433 -1808 Pol. Dept. Fax: 206- 244 -6181; Admin. Fax: 206.433 -7197; Invest. Fax: 206 431 -3688 The final area to mention is our participation on the Valley Narcotics Enforcement Team (VNET) This team is currently assigned to work with the Drug Enforcement Administration (DEA) task force assigned to the Airport. This task force is also a HIDTA Task Force (High Intensity Drug Trafficking Area). Our contribution to this task force is one officer and participation on the oversight board of police chiefs. Current members of the board are Tukwila, Port of Seattle, Federal Way, Auburn, Kent, and Renton. When State seizures are made, by this task force, VNET handles the process. Some of the State seizures are then distributed to the City of Tukwila Police Department seizure account. hope this brief information is helpful. March 4, 2009 2 DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING THE 2009 -2010 BIENNIAL BUDGET ADOPTED BY ORDINANCE NO. 2221, PROVIDING FOR THE TRANSFER OF FUNDS FOR REVENUES AND EXPENDITURES FROM THE GENERAL FUND; ESTABLISHING A NEW SPECIAL REVENUE FUND FOR THE TUKWILA POLICE DEPARTMENT'S DRUG SEIZURE FUND, ALONG WITH ADOPTION OF BUDGETED REVENUES AND EXPENDITURES IN THE DRUG SEIZURE FUND FOR 2009 -2010; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City's current accounting practice for the recognition of the Tukwila Police Department's drug seizure revenues and expenditures is to account for them within the General Fund; and WHEREAS, the City desires to streamline the oversight process in order to more appropriately account for the Tukwila Police Department's drug seizure revenue and expenditure activity, it is necessary to create a new special revenue fund to account for those specific revenue sources that are legally restricted to expenditures for particular purposes; and WHEREAS, the City finds it necessary to transfer the appropriate ending fund balance of $154,646.65, which is the accumulated unspent seizure funds as of December 31, 2008, from the General Fund in order to establish the special revenue fund for the Tukwila Police Department's Drug Seizure Fund -109; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Budget Amended. As the City finds it necessary to create a new special revenue fund to appropriately account for the revenues and expenditures of the Tukwila Police Department's Drug Seizure Fund that are specific and legally restricted for particular purposes, Ordinance No. 2221 is hereby amended to add the following: FUND EXPENDITURES REVENUES 000 General $99,336,035 $99,536,035 $99,336,035 $99,536,035 109 Drug Seizure Fund 354,647 354,647 Section 2. Fund Established. Ordinance No. 2221 is hereby amended to create a new special revenue Drug Seizure Fund 109 to reflect the appropriate fund revenues and expenditures as set forth in Section 1 of this ordinance. Section 3. Adjustments Authorized. The Finance Director is hereby authorized and instructed to effectuate the necessary and appropriate changes in the 2009 -2010 biennial budget, and to make all necessary and appropriate line item entries and adjustments in order to reflect the biennial budget amendment for the transfer of funds from the General Fund as set forth in this ordinance. C /Documents and Settings\All Users \Desktop\Kelly\MSDATA \Ordinances \Police Drug Seizure Fund.doc LJ:ksn 3/4/2009 Page 1 of 2 Section 4. 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 5. 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 Special Council 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 \Police Drug Seizure Fund.doc LJ:ksn 2/26/2009 Page 2 of 2 City of Tukwila Washington Ordinance No. ac)s,.-). AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE BIENNIAL BUDGET OF THE CITY OF TUKWILA FOR THE 2009 -2010 BIENNIUM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the preliminary budget of the City of Tukwila for the year 2009 -2010 biennium was submitted to the City Council in a timely manner for their review; and WHEREAS, a Public Hearing on the proposed budget was advertised and held on November 17, 2008; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council hereby adopts the document entitled "City of Tukwila 2009- 2010 Budget," incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.34.120. Section 2. The totals of the estimated revenues and appropriations for each separate fund and the aggregate totals are as follows: FUND 000 101 103 104 105 107 207 208 209 210 301 302 303 401 402 404 405 411 412 501 502 503 611 General Hotel /Motel Tax City Street Arterial Street Contingency Fire Equipment Cumulative Reserve Limited Tax G.O. Bonds, 1999 Limited Tax G.O. Bonds, 2000 Limited Tax G.O. Bonds, 2003 Limited Tax G.O. Refunding Bonds, 2003 Land Acquisition, Recreation Park Develpint. Facility Replacement General Government Improvements Water Sewer Water /Sewer Revenue Bonds Bond Reserve Foster Golf Course Surface Water Equipment Rental Insurance Fund Insurance LEOFF 1 Fund Firemen's Pension TOTAL ALL FUNDS COMBINED EXPENDITURES $99,536,035 3,597,148 877,000 91,553,000 892,187 767,797 1,846,965 735,000 1,531,000 1,233,000 11,272,000 7,939,000 2,276,000 15,151,301 15,862,365 1,241,435 411,000 5,137,534 11,984,134 10,324,969 13,155,217 2,282,562 1,578,000 $301,184,649 REVENUES $99,536,035 3,597,148 877,000 91,553,000 892,187 767,797 1,846,965 735,000 1,531,000 1,233,000 11,272,000 7,939,000 2,276,000 15,151,301 15,862,365 1,241,435 411,000 5,137,534 11,984,134 10,324,969 13,155,217 2,282,562 1,578,000 $301,184,649 Section 3. A complete copy of the final budget for 2009 -2010, as adopted, together with a copy of this adopting ordinance, shall be kept on file in the City Clerk's Office, and a copy shall be transmitted by the City Clerk to the Division of Municipal Corporations of the Office of the State Auditor and to the Association of Washington Cities. Section 4. 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 5. 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 and effect five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY F TUKWILA, WASHINGTON, at a Regular Meeting thereof this 1 day of 1 C ..vh -P 2008. ATTEST/ AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED A T Office of the Ci RM BY: orney Attachment: City of Tukwila 2009 -2010 Budget aggerto or Filed with the City Clerk: j c-) 7)-6,P Passed by the City Council: r 5' 7)P Published: 1 n;N Effective Date: i OP Ordinance Number: 1 Finance Safety Committee Minutes March 3 2009 Paae 2 This criterion substantially limits the number of students that are eligible to apply for the high school representative position on COPCAB; a position that is often difficult to fill. Staff would like to amend these criteria to reflect similar requirements and guidelines of other COPCAB positions. The change would only require that: The high school representative be a student in the Tukwila School District, and The individual be appointed by the Mayor and confirmed by the Council. This proposed amendment will broaden the Police Department's opportunity to seek out qualified high school students eligible for this position on the Community Oriented Policing Advisory Board. The Committee inquired as to how this would affect the eligibility of high school students interested in serving on COPCAB who live in Tukwila but attend high schools outside the City limits. Staff responded that as with the previous requirements, students not attending school in the Tukwila School District were not able to serve as a student representative; however, they have always and will continue to be eligible to apply for the residential representative positions. Having a student representative actively attending school in the Tukwila School District on COPCAB is essentially to information sharing among members of the Board. Committee Chair Linder suggested additional information be provided for clarification in the memo that is submitted to full Council regarding the purpose of COPCAB as well as the purpose of the student representative. UNANIMOUS APPROVAL. FORWARD TO MARCH 9 COW FOR DISCUSSION. C. An Ordinance Establishing a Drug Seizure Fund Staff is seeking full Council approval of an ordinance that will amend the 2009 -10 Biennial Budget and establish a special revenue fund for the Police Department's drug seizure revenue and expenditure activity. Currently, these funds are accumulated in the General Fund and require manual tracking of revenues and expenses throughout the year. Creating a special revenue fund specifically for this purpose will streamline the oversight process and increase efficiency relative to revenue and expenditure activities. Additionally, this separate fund will be eligible to accrue interest. Committee Chair Liner requested a memo be submitted to full Council at the same time this item goes forth, explaining the current revenue /expenditures balance relative to this account. UNANIMOUS APPROVAL. FORWARD TO MARCH 9 COW FOR DISCUSSION. D. A Resolution an Identity Theft Prevention Program Staff is seeking full Council approval of a resolution adopting an Identity Theft Prevention Program. Originally passed by Congress in 2003, implementation of policies and programs relating to the detection and prevention of identify theft were previously delayed; however, the Federal Trade Commission is now requiring that businesses adopt such programs and policies by May 1, 2009. This consumer protection law is also known as the Red Flag Rule. The Red Flag Rule specifically applies to utility accounts (such as the City's water billing) and any other account where there may be a reasonable risk for identity theft. This resolution will approve and adopt an identity theft protection program for the City which will be administered by Shawn Hunstock. UNANIMOUS APPROVAL. FORWARD TO MARCH 9 COW FOR DISCUSSION. CAS NUMBER 09-035 C. \"I'I ;G )RY SPONSOR SPONSOR'S SUMi \RY RI ;V'll :wI ;D BY MTG. DATE 03/09/09 MTG. DATE 03/09/09 03/23/09 Discussion n Motion Altg Date 03/09/09 illtg Date n COW Mtg. Utilities Cmte illeetina Date 03/09/09 03/23/09 CouNcIL AGENDA SYNOPSIS Prepared by SH SH Initiate Mayor's review Council re/ev i ITEM INFORMATION ORIGINAL. AGENDA DATE: MARCH 9, 2009 AG km) III ;VI Trrl.l; Adoption of identify theft prevention program. Resolution Ordinance Mtg Date 3/23/09 Mtg Date CA &P Cmte U Arts Comm. I I Mtg Date Council U Mayor n Adm Svcs DCD Finance U Fire Legal 1 P &R Police n Pr The city is required to adopt an identity theft detection and prevention program according to the Federal Trade Commission's Red Flags Rule. The requirements specifically apply to City utility accounts, but also apply to any account the City maintains where there is a risk of potential identity theft. The Council is being asked to consider and adopt the resolution and associated program. F &S Cmte Parks Comm. DATE: 3/3/09 RECOMMENDATIONS: SP()NS()R /ADMIN. Adoption of Ordinance COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE Ex1I NDITURI; RI;QUIRIiD AMOUNT BUDGETED APPROPRIATION REQUIRED 'Fund Source: N/A Comments: N/A RECORD OF COUNCIL ACTION Bid Award Public Hearing n Other ATTACHMENTS Informational Memorandum dated 2/18/09 Resolution in draft form Exhibit A Identity Theft Prevention Program Memorandum from Shelley Kerslake Shawn Hunstock dated 2/18/09 Minutes from the Finance and Safety Committee Meeting of 3/3/09 Planning Comm. ITEM NO. tlltg Date Mtg Date Transportation Cmte TO: Mayor Haggerton Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: February 18, 2009 SUBJECT: Adoption of Red Flags Rule Program ISSUE The Federal Trade Commission issued regulations requiring businesses to adopt identity theft detection and prevention policies and procedures. The policies and procedures must be in place by May 1, 2009. BACKGROUND The Red Flags Rule is a consumer protection law passed by Congress in 2003. The purpose of the Red Flags Rule is to put in place procedures which will prevent or detect the release of information that could lead to identity theft. The Rule specifically applies to utility accounts according to the law passed by Congress. The identity theft policies and procedures, referred to as a "Program" in the law passed by Congress, must be approved by the City Council. I am identified as the Program Administrator in the proposed policies. DISCUSSION The Program applies to utility accounts specifically, as well as "any other account the City offers or maintains for which there is a reasonably foreseeable risk to customers or to the safety and soundness of the City from identity theft." It has not been determined at this time how far reaching the Program applies, but that will be determined during implementation and training. The issue is most relevant, however, to utility accounts given the nature of the information the City maintains and how that information might be used. For instance, changing a name or address on a utility account could help an individual, using the utility bill, in getting a driver's license or other forms of identification. As a part of the Program, the City will conduct on -going training for employees on the prevention and detection of identity theft. We will also be working with third -party service providers, such as credit card processing companies, to insure they agree to comply with the City's identity theft prevention policies. RECOMMENDATION The Council is being asked to consider a resolution adopting an Identity Theft Prevention Program. This issue will be presented at the March 3, 2009 Finance and Safety Committee Meeting, the March 9, 2009 Committee of the Whole Meeting and the March 23, 2009 Special Meeting. Because the policy must be approved and implemented, including training, by May 1, 2009, consideration of this issue at the March 23, 2009 Special Meeting will allow more time for employee training. ATTACHMENTS City of Tukwila INFORMATIONAL MEMORANDUM Draft Resolution adopting the Program. Draft copy of Identity Theft Prevention Program. Letter from Shelley Kerslake, City Attorney, dated February 18, 2009. Jim Haggerton, Mayor A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, APPROVING AND ADOPTING AN IDENTITY THEFT PREVENTION PROGRAM. WHEREAS, the City has a water -sewer utility providing water and /or sewer utility services pursuant to Title 57 RCW; and WHEREAS, the Fair and Accurate Credit Transactions Act of 2003, Pub. L. 108 -159 "Red Flags Rule 16 C.F.R. Part 681, requires certain financial institutions and creditors with "covered accounts" to prepare, adopt, and implement an identity theft prevention program to identify, detect, respond to and mitigate patterns, practices or specific activities, which could indicate identity theft; and WHEREAS, the City maintains certain continuing accounts with utility service customers and for other purposes, which involve multiple payments or transactions, and such accounts are "covered accounts" within the meaning of the Red Flags Rule; and WHEREAS, to comply with the Red Flags Rule, City staff has prepared an identity theft prevention program in the form attached hereto as Exhibit A, "Identity Theft Prevention Program," and incorporated herein by this reference (the "ITPP" or the "Program and has recommended the Program now be approved and adopted by the City Council for implementation; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Identity Theft Prevention Program Adopted. The Tukwila Identity Theft Protection Program, a copy of which is attached hereto as Exhibit A, and by this reference fully incorporated herein, is hereby approved and adopted, effective the date set forth below. City staff is hereby authorized and directed to implement the Program in accordance with its terms. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Special Meeting thereof this day of 2009. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney DRAFT Attachment: Exhibit A, Identity Theft Prevention Program Joan Hernandez, Council President Filed with the City Clerk: Passed by the City Council: Resolution Number: C: \Documents and Settings \All Users Desktop Kelly MSDATA Resolutions Red Flags Identity Theft.doc SH:ksn 3/4/2009 Page 1 of 1 CITY OF TUKWILA IDENTITY THEFT PREVENTION PROGRAM C:\Documents and Settings\All Users\ Desktop \Kelly\iYISDATA\Resolutions\Red Flags Identity Theft Exhibit A.doc SH:ksn 2/25/2009 1. PROGRAM ADOPTION. The City of Tukwila developed this Identity Theft Prevention Program "Program pursuant to the Federal Trade Commission's Red Flags Rule "Rule which implements Sections 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003. This Program was developed with the oversight and approval of the City's Finance Director. After consideration of the size and complexity of the City's operations and account systems and the nature and scope of the City's activities, the City Council determined that this Program was appropriate for the City, and therefore approved this Program by the adoption of Resolution No. on the day of 2009. 2. PROGRAM PURPOSE AND DEFINITIONS Exhibit A A. Fulfilling Requirements of the Red Flags Rule. Under the Red Flags Rule, every financial institution and creditor is required to establish an identity theft prevention program tailored to its size, complexity and the nature of its operation. The Program must contain reasonable policies and procedures to: 1) Identify relevant red flags as defined in the Rule and this Program for new and existing covered accounts, and incorporate those red flags into the Program; 2) Detect red flags that have been incorporated into the Program; 3) Respond appropriately to any red flags that are detected to prevent and mitigate identity theft; and 4) Update the Program periodically to reflect changes in risks to customers or to the safety and soundness of the City from identity theft. B. Red Flags Rule Definitions Used in this Program. For the purposes of this Program, the following definitions apply: 1) Account. "Account" means a continuing relationship established by a person with a creditor to obtain a product or service for personal, family, household or business purposes. 2) Covered Account. A "covered account" means: a) Any account the City offers or maintains primarily for personal, family or household purposes, that involves multiple payments or transactions; and Page 1 of 7 b) Any other account the City offers or maintains for which there is a reasonably foreseeable risk to customers or to the safety and soundness of the City from identity theft. 3) Creditor. "Creditor" has the same meaning as defined in Section 701 of the Equal Credit Opportunity Act, 15 U.S.C. 1691a, and includes a person or entity that arranges for the extension, renewal or continuation of credit, including the City. 4) Customer. A "customer" means a person or business entity that has a covered account with the City. 5) Financial Institution. "Financial institution" means a state or national bank, a state or federal savings and loan association, a mutual savings bank, a state or federal credit union, or any other entity that holds a "transaction account" belonging to a customer. 6) Identifying Information. "Identifying information" means any name or number that may be used, alone or in conjunction with any other information, to identify a specific person, including name, address, telephone number, social security number, date of birth, government passport number, employer or taxpayer identification number or unique electronic identification number. 7) Identity Theft. "Identity theft" means fraud committed using the identifying information of another person. 8) Red Flag. A "red flag" means a pattern, practice, or specific activity that indicates the possible existence of identity theft. 9) Service Provider. "Service provider" means a person or business entity that provides a service directly to the City relating to or in connection with a covered account. 3. IDENTIFICATION OF RED FLAGS. In order to identify relevant red flags, the City shall review and consider the types of covered accounts that it offers and maintains, the methods it provides to open covered accounts, the methods it provides to access its covered accounts, and its previous experiences with identity theft. The City identifies the following red flags, in each of the listed categories: A. Notification and Warnings from Credit Reporting Agencies Red Flags. 1) Report of fraud accompanying a credit report; 2) Notice or report from a credit agency of a credit freeze on a customer or applicant; C:\Documents and Settings\All Users\ Desktop \Kelly\MSDATA\Resolutions\Red Flags Identity Theft Exhibit A.doc SH:ksn 2/25/2009 Page 2 of 7 3) Notice or report from a credit agency of an active duty alert for an applicant; and 4) Indication from a credit report of activity that is inconsistent with a customer's usual pattern or activity. B. Suspicious Documents Red Flags. 1) Identification document or card that appears to be forged, altered or inauthentic; 2) Identification document or card on which a person's photograph or physical description is not consistent with the person presenting the document; 3) Other document with information that is not consistent with existing customer information (such as a person's signature on a check appears forged); and 4) Application for service that appears to have been altered or forged. C. Suspicious Personal Identifying Information -Red Flags. 1) Identifying information presented that is inconsistent with other information the customer provides (such as inconsistent birth dates); 2) Identifying information presented that is inconsistent with other sources of information (for instance, an address not matching an address on a driver's license); 3) Identifying information presented that is the same as information shown on other applications that were found to be fraudulent; 4) Identifying information presented that is consistent with fraudulent activity (such as an invalid phone number or fictitious billing address); 5) Social security number presented that is the same as one given by another customer; 6) An address or phone number presented that is the same as that of another person; 7) Failing to provide complete personal identifying information on an application when reminded to do so (however, by law social security numbers must not be required); and 8) Identifying information which is not consistent with the information that is on file for the customer. C:\Documents and Settings\A11 Users\ Desktop \Kelly\MSDATA\Resolutions\Red Flags Identity Theft Exhibit A.doc SH:ksn 2/25/2009 Page 3 of 7 D. Suspicious Account Activity or Unusual Use of Account Red Flags. 1) Change of address for an account followed by a request to change the account holder's name; 2) Payments stop on an otherwise consistently up -to -date account; 3) Account used in a way that is not consistent with prior use (such as very high activity); 4) Mail sent to the account holder is repeatedly returned as undeliverable; 5) Notice to the City that a customer is not receiving mail sent by the City; 6) Notice to the City that an account has unauthorized activity; 7) Breach in the City's computer system security; and 8) Unauthorized access to or use of customer account information. E. Alerts from Others Red Flag. 9) Notice to the City from a customer, a victim of identity theft, a law enforcement authority or other person that it has opened or is maintaining a fraudulent account for a person engaged in identity theft. 4. DETECTING RED FLAGS A. New Accounts. In order to detect any of the red flags identified above associated with the opening of a new account, City personnel will take the following steps to obtain and verify the identity of the person opening the account: 1) Require certain identifying information such as name, date of birth, residential or business address, principal place of business for an entity, driver's license or other identification; 2) Verify the customer's identity (for instance, review a driver's license or other identification card); 3) Review documentation showing the existence of a business entity; and 4) Independently contact the customer. B. Existing Accounts. In order to detect any of the red flags identified above for an existing account, City personnel will take the following steps to monitor transactions with an account: 1) Verify the identification of customers if they request information (in person, via telephone, via facsimile, via email); C:\Documents and Settings\A11 Users\ Desktop \Kelly\MSDATA\Resolutions\Red Flags Identity Theft Exhibit A.doc SH:ksn 2/25/2009 Page 4 of 7 2) Verify the validity of requests to change billing addresses; and 3) Verify changes in banking information given for billing and payment purposes. 5. PREVENTING AND MITIGATING IDENTITY THEFT. In the event City personnel detect any identified red flags, such personnel shall take one or more of the following steps, depending on the degree of risk posed by the red flag: A. Prevent and Mitigate Identity Theft. 1) Monitor a covered account for evidence of identity theft; 2) Contact the customer with the covered account; 3) Change any passwords or other security codes and devices that permit access to a covered account; 4) Not open a new covered account; 5) Close an existing covered account; 6) Re -open a covered account with a new number; 7) Not attempt to collect payment on a covered account; 8) Notify the Finance Director for determination of the appropriate step(s) to take; 9) Notify law enforcement; or 10) Determine that no response is warranted under the particular circumstances. B. Protect Customer Identifying Information. In order to further prevent the likelihood of identity theft occurring with respect to City accounts, the City shall take the following steps with respect to its internal operating procedures to protect customer identifying information: 1) Secure the City website but provide clear notice that the website is not secure; 2) Undertake complete and secure destruction of paper documents and computer files containing customer information; 3) Make office computers password protected and provide that computer screens lock after a set period of time; 4) Keep offices clear of papers containing customer identifying information; 5) Request only the last 4 digits of social security numbers (if any); C: \Documents and Settings\Al1 Users\ Desktop \Kelly\MSDATA\Resolutions \Red Flags Identity Theft Exhibit A.doc SH:ksn 2/25/2009 Page 5 of 7 6) Maintain computer virus protection up to date; and 7) Require and keep only the kinds of customer information that are necessary for City purposes. 6. PROGRAM ADMINISTRATION A. Oversight. 1) The Finance Director or other designated city employee at the level of senior management shall be responsible for developing, implementing, and updating the Program. 2) The Finance Director shall also be responsible for the Program administration, for appropriate training of City staff on the Program, for reviewing the annual staff report required under the Program, as well as any other staff reports regarding the detection of red flags and the steps for preventing and mitigating identity theft, determining which steps of prevention and mitigation should be taken in particular circumstances, and considering periodic changes to the Program. B. Staff Training and Reports. City staff responsible for implementing the Program shall be trained either by or under the direction of the Finance Director in the detection of red flags, and the responsive steps to be taken when a red flag is detected. Additionally, a compliance report shall be provided annually to the Finance Director. The annual compliance report shall, at a minimum, address the following: 1) The effectiveness of the City's policies and procedures in addressing the risk of identity theft in connection with the opening of covered accounts and with respect to existing covered accounts; 2) Service provider arrangements; 3) Significant incidents involving identity theft and the City's response; and 4) Recommendations for material changes to the Program. C. Service Provider Arrangements. In the event the City engages a service provider to perform an activity in connection with one or more covered accounts, the City shall take the following steps to require that the service provider performs its activity in accordance with reasonable policies and procedures designed to detect, prevent, and mitigate the risk of identity theft. 1) Require, by contract, that service providers acknowledge receipt and review of the Program and agree to perform their activities with respect to City covered accounts in compliance with the terms and conditions of the Program C:\Documents and Settings\Al1 Users\ Desktop \Kelly \MSDATA\Resolutions\Red Flags Identity Theft Exhibit A.doc SH:ksn 2/25/2009 Page 6 of 7 and with all instructions and directives issued by the Finance Director relative to the Program; or 2) Require, by contract, that service providers acknowledge receipt and review of the Program and agree to perform their activities with respect to City covered accounts in compliance with the terms and conditions of the service provider's identity theft prevention program and will take appropriate action to prevent and mitigate identity theft; and that the service providers agree to report promptly to the City in writing if the service provider in connection with a City covered account detects an incident of actual or attempted identity theft or is unable to resolve one or more red flags that the service provider detects in connection with a covered account. D. Customer Identifying Information and Public Disclosure. The identifying information of City customers with covered accounts shall be kept confidential and shall be exempt from public disclosure to the maximum extent authorized by law, including RCW 42.56.230(4). The City Council also finds and determines that public disclosure of the City's specific practices to identify, detect, prevent, and mitigate identity theft may compromise the effectiveness of such practices and hereby direct that, under the Program, knowledge of such specific practices shall be limited to the Finance Director and those City employees and service providers who need to be aware of such practices for the purpose of preventing identity theft. 7. PROGRAM UPDATES. The Program will be periodically reviewed and updated to reflect changes in risks to customers and to the safety and soundness of the City from identity theft. The Finance Director shall, at least annually, review the annual compliance report and consider the City's experiences with identity theft, changes in identity theft methods, changes in identity theft detection and prevention methods, changes in types of accounts the City maintains and changes in the City's business arrangements with other entities and service providers. After considering these factors, the Finance Director shall determine whether changes to the Program, including the listing of red flags, are warranted. If warranted, the Finance Director shall present the recommended changes to the City Council for review and approval. C:\Documents and Settings\All Users\ Desktop \Kelly\MSDATA\Resolutions\Red Flags Identity Theft Exhibit A.doc SH:ksn 2/25/2009 Page 7 of 7 MICHAEL R. KENYON BRUCE L. DISEND SHELLEY M. KERSLAKE SANDRA S. MEADOWCROFT CHRIS D. BACHA BOB C. STERBANK KENYON DISEND, PLLC THE MUNICIPAL LAW FIRM 11 FRONT STREET SOUTH ISSAQUAH, WASHINGTON 98027 -3820 W WW. KENYONDISEND. COI (425) 392 -7090 (206) 628 -9059 FAX (425) 392 -7071 TO: Mayor Jim Haggerton and Members of the City Council Rhonda Berry, City Administrator FROM: Shelley M. Kerslake, City Attorney Shawn Hunstock, Finance Director DATE: February 18, 2009 RE: Overview of Requirements of FTC Red Flags Rule I. BACKGROUND In 2003, Congress passed the Fair and Accurate Credit Transaction Act "FACTA (Public Law 108 -159). To implement the identity theft provisions of FACTA, the Federal Trade Commission "FTC was charged with promulgating rules that require the adoption of certain identity theft prevention programs. The FTC adopted these rules, known as the "Red Flags Rule," on November 7, 2007. The Red Flags Rule requires financial institutions and creditors that hold consumer accounts to develop and implement a written Identity Theft Prevention Program by May 1, 2009. City utilities are one of the entities that must comply with this requirement.' Because the deadline for adopting a written Identity Theft Prevention Program "Program is approaching, the purpose of this memorandum is to outline the Program requirements and identify some issues for consideration during the course of adoption. The FTC Red Flags Rule "Rule and its appendix, also provide specific suggestions and examples of red flags and suggested responses that a city may use to create its Program. A draft Ordinance with an attached Program that incorporates the Rule's suggestions is provided with this memorandum. A copy of the relevant Rule is also provided. II. REOUIREMENTS To comply with the new Rule, Tukwila must develop and implement a written Program that is appropriate for the size and complexity of the City, and which is "designed to detect, prevent and mitigate identity theft in connection with the opening of a covered account or any existing covered account. Under the Rule, a "covered account" is: The Red Flags Rule and Address Discrepancy Rules apply to "fmancial institutions" and "creditors" with "covered accounts." A "creditor" is defined as any entity that regularly extends, renews, or continues credit and specifically includes utility companies. 16 C.F.R. 681.2(b)(3)(ii). 2 16 C.F.R. 681.2(d). C:\DOCUME— I\kathyp \LOCALS-- 1 \Teinp\XPgrpwise \Tuk Meino Red Flag Rules_2.doc/KIS /02/13/09 SERVING WASHINGTON CITIES SINCE 1993 MARGARET J. KING KARI L. SAND NOEL R. TREAT RENEE G. WALLS AiLw JO PEARSALL Any account a city or utility offers or maintains primarily for personal, family or household purposes, that involves multiple payments or transactions; and Any other account a city or utility offers or maintains for which there is a reasonably foreseeable risk to customers or to the safety and soundness of the city or utility of identity theft. Accordingly, the first step in preparing the City's Program is to identify all City accounts that constitute a "covered account." Second, the Program must include reasonable policies and procedures for detecting, preventing, and mitigating identity theft. To accomplish this, the Program must include procedures to focus on "red flags" that, with further analysis, would suggest that identity theft might be occurring. Red flags are defined as patterns, practices, or specific activities that indicate the possible existence of identity theft. The Rule identifies five general categories of red flags and suggested responses. The general red flag categories are: 1. The receipt of warnings from consumer reporting agencies; 2. Providing suspicious documents to a city; 3. Providing suspicious personal identifying information; 4. The unusual use of an account; and 5. Notices from customers, victims, or law enforcement of identity theft in connection with a covered account. While the FTC's Red Flags Rule provides a helpful template of categories and suggested responses to incorporate into a required Program, each city must deter mine the specific aspects to include or expand upon in its Program after a review of its specific situation. This suggests that each city should consider which particular actions or circumstances concerning its "covered accounts" might indicate identity theft, and consider including those actions or circumstances as a defined "red flag." Third, the Program must include procedures to accomplish the following: 1. Identify relevant red flags for covered accounts and incorporate those red flags into the Program; 2. Detect red flags that have been incorporated into the Program; 3. Respond appropriately to any red flags that are detected to prevent and mitigate identity theft; and 4. Ensure the Program is updated periodically, to reflect changes in risks to customers or to the safety and soundness of the creditor from identity theft. 16 C.F.R. 681.2(3). a 16 C.F.R. 681.2(b)(9). This issue is discussed in more detail under Section III of this memorandum. -2- C\DOCUME -1 \kathyp \LOCALS -1 \Temp\XPgrpwise \Tuk Memo Red Flag Ruies_2.doc /KIS /02/18/09 In addition to the foregoing, a Program must include certain administrative procedures. An initial written Program must receive approval from the City Council or the utility's board of directors or an appropriate committee of the board. The Council, board, or committee must also continue with oversight, development, implementation, and administration of the Program or assign such duties to an employee at the senior management level. Third, as part of this implementation and oversight, staff must receive proper training concerning implementation of the Program. Finally, staff must prepare a staff report so that the program administrator or Council can evaluate the effectiveness of the Program with respect to open and existing accounts, service provider arrangements, significant incidents and responses, and recommendations for change. III. COMPLIANCE While all cities with utilities must comply with the Rules by adopting a Program, the extent of the Program will depend on the size and practices of the utility. Because large cities and utilities will have different issues than small cities and utilities, there is 110 one size fits -all Solution. Additionally, while the Rule requires the adoption of a Program, it also discusses the need for assessment and application of policies addressing the unique requirements of the regulated entity. For example, if a city does not use or receive credit reports as part of its utility billing services, then it will not need to include in its category of red flags a procedure for addressing alerts, notifications, or other warnings received from consumer reporting agencies. The process of creating the policies adopted in the City's Program is therefore as important as complying with the rules adopted by the Program. A Program with procedures and policies that do not apply to the City's circumstances will likely pose a bigger problem than adopting a solid Program that meets that City's needs a few weeks beyond the November 1, 2008 deadline. While the FTC has the authority to enforce the Red Flags Rule and assess penalties not to exceed $2,500 per violation for a failure to adopt a policy, a statement from the Minnesota Municipalities Utilities Association's website explains that the FTC will not be checking individual utilities to see if the deadline is met. Accordingly, having a well thought -out program that is applicable to Tukwila's specific needs is preferable to adopting a cookie cutter policy or plan. 6 16 C.F.R. 681.2(e)(1). 16 C.F.R. 681.2(e)(2). 8 16 C.F.R. 681.2(e)(3) -(4). 9 Appendix A to Part 681 A(VI)(b)(1). -3- C:\DOCUME- -1\katlryp \LOCALS- --1 \Temp\XPgrpwise \Tuk Memo Red Flag Rules_2.doc/KIS /02/18/09 Finance Safety Committee Minutes March 3, 2009 Page 2 This criterion substantially limits the number of students that are eligible to apply for the high school representative position on COPCAB; a position that is often difficult to fill. Staff would like to amend these criteria to reflect similar requirements and guidelines of other COPCAB positions. The change would only require that: The high school representative be a student in the Tukwila School District, and The individual be appointed by the Mayor and confirmed by the Council. This proposed amendment will broaden the Police Department's opportunity to seek out qualified high school students eligible for this position on the Community Oriented Policing Advisory Board. The Committee inquired as to how this would affect the eligibility of high school students interested in serving on COPCAB who live in Tukwila but attend high schools outside the City limits. Staff responded that as with the previous requirements, students not attending school in the Tukwila School District were not able to serve as a student representative; however, they have always and will continue to be eligible to apply for the residential representative positions. Having a student representative actively attending school in the Tukwila School District on COPCAB is essentially to information sharing among members of the Board. Committee Chair Linder suggested additional information be provided for clarification in the memo that is submitted to full Council regarding the purpose of COPCAB as well as the purpose of the student representative. UNANIMOUS APPROVAL. FORWARD TO MARCH 9 COW FOR DISCUSSION. C. An Ordinance Establishing a Drug Seizure Fund Staff is seeking full Council approval of an ordinance that will amend the 2009 -10 Biennial Budget and establish a special revenue fund for the Police Department's drug seizure revenue and expenditure activity. Currently, these funds are accumulated in the General Fund and require manual tracking of revenues and expenses throughout the year. Creating a special revenue fund specifically for this purpose will streamline the oversight process and increase efficiency relative to revenue and expenditure activities. Additionally, this separate fund will be eligible to accrue interest. Committee Chair Liner requested a memo be submitted to full Council at the same time this item goes forth, explaining the current revenue /expenditures balance relative to this account. UNANIMOUS APPROVAL. FORWARD TO MARCH 9 COW FOR DISCUSSION. D. A Resolution an Identity Theft Prevention Program Staff is seeking full Council approval of a resolution adopting an Identity Theft Prevention Program. Originally passed by Congress in 2003, implementation of policies and programs relating to the detection and prevention of identify theft were previously delayed; however, the Federal Trade Commission is now requiring that businesses adopt such programs and policies by May 1, 2009. This consumer protection law is also known as the Red Flag Rule. The Red Flag Rule specifically applies to utility accounts (such as the City's water billing) and any other account where there may be a reasonable risk for identity theft. This resolution will approve and adopt an identity theft protection program for the City which will be administered by Shawn Hunstock. UNANIMOUS APPROVAL. FORWARD TO MARCH 9 COW FOR DISCUSSION. Tentative Agenda Schedule MONTH MEETING 1 REGULAR March 2 30th Fifth Monday of the month —no Council meeting scheduled April 6 Special Presentation: Update on Renton Area Youth Services (RAYS) (Richard Brooks, Executive Director) Appointment: Sister Cities Committee Unfinished Business: Ordinance amending the composition of the Community- oriented Policing Citizens Advisory Board Ordinance amending the gambling tax ordinance regarding charitable and non- profit organizations Records storage facility MEETING 2 MEETING 3 MEETING 4 C.O.W. REGULAR C.O.W. 9 See agenda packet cover sheet for this week's agenda (March 9, 2009 Committee of the Whole Meeting) 13 Special Presentation Update on services provided by Ruth Dykeman Youth and Family Services (Jennifer Higgins Liz Lang) Special Issues: Draft Shoreline Master Program 16 To be cancelled due to lack of quorum 20 Special Presentation: Zev Siegl, Small Business Development Center at Highline Connnunity College Public Hearing: Draft Shoreline Master Program Unfinished Business: Draft Shoreline Master Program 23 Special Presentation: State of the City presentation (Shawn Hunstock, Finance Director) Special Issues: Records storage facility Shoreline Master Program briefing COMMIT 1 EE OF THE WHOLE MEETING TO BE FOLLOWED BY A SPECIAL MEETING Special Meeting Bid Award: Award a contract to Brike Excavating for the 2009 Sewer Infiltration Inflow project Unfinished Business: Resolution approving and adopting an Identity Theft Program Ordinance establishing a new special revenue fund for the Tukwila Police Department's Drug Seizure Fund 27 Special Issues: Draft Shoreline Master Program 9th (Monday) Community Affairs Parks Cmte, 5: 00 PM (CR #3) City Council Committee of the Whole Mtg., 7:00 PM (Council Chambers) Transportation Emte To BE CANCELLED DUE TO LACK OF QUORUM City Council Regular Mtg. TO BE CANCELLED DUE TO LACK OF QUORUM Today is registration deadline for Crime Prevention Training class to be held Saturday, March 21st. 4 10th (Tuesday) Utilities Cmte, 5:00 PM (CR #1) Highway 99 Action Cmte, 7:00 PM (Community Center) Upcoming Meetings Events MARCH 2009 11th (Wednesday) 16th (Monday) 17th (Tuesday) 18th (Wednesday) Finance Parks Safety Cmte Commission, TO BE 5:30 PM CANCELLED (Community DUE TO LACK Center) OF QUORUM Library Advisory Board, 7:00 PM (Foster Library) 12th (Thursday) Lodging Tax Advisory Committee meeting, 12:00 NOON (Courtyard by Marriott at 400 Andover Park West) Planning Commission (Work Session on the Tukwila Urban Center Plan, including presentation of draft plan), 6:00 PM (Council Chambers) 19th (Thursday) Crime Hot Spots Task Force Mtg., 10:00 AM (CR #5) Domestic Violence Task Force, 12:00 NOON (Hunan Services office) Tukwila Historical Society, 7:00 PM (George Long facility) 13th (Friday) 20th (Friday) Human Services Providers, 11:30 AM (Community Center) 14th (Saturday) 21st (Saturday) FREE Crime Prevention Training class 9:00 AM to 4:00 PM (Community Center) Pre registration is required by March 16. Call 206 -431 -2197 or e-mail cpartman@ ci.tukwila.wa.us. Recommended for Neighborhood Watch captains and members, business owners, people who work in Tukwila, and anyone interested in a crime free Tukwila. i Arts Commission: 1st Tues., 5:00 PM, Tukwila Community Center. Contact Stephanie Gardner at 206- 767 -2342. ➢City Council Committee of Whole (C.O.W.) Meeting: 2nd 4th Mon., 7:00 PM, Council Chambers at City Hall. City Council Regular Meeting: 1st 3rd Mon., 7:00 PM, Council Chambers at City Hall. Civil Service Commission: 1st Mon., 5:00 PM, Conf. Room #3. Contact Bev Willison at 206 433 -1844. Community Affairs Parks Committee: 2nd 4th Mon., 5:00 PM, Conf. Room #3. Agenda items for 3/9/09 meeting: (A) lnterlocal agreement with SeaTac for Conumnity Center -to- Community Center project (8) Briefing on new growth targets. (C) 2008 4th quarter report. Crime Hot Spots Task Force: 3rd Thurs., 10:00 AM, Conf. Room #5. Contact Phi Huynh at 206 -433 -7175. Domestic Violence Task Force: 3rd Thurs., 12:00 Noon, Human Services Office. Contact Stacy Hansen at 206- 433 -7/81. Equity Diversity Commission: 1st Thurs., 5:15 PM, Conf. Room #3. Contact Kimberly Matej at 206 -433 -1834. Finance Safety Committee: 1st 3rd Tues., 5:00 PM, Conf. Room 83. >Highway 99 Action Committee: 2nd Tues., 7:00 PM, Tukwila Community Center. Contact Chief Dave Haynes at 206 -433 -1812. >Human Services Advisory Brd: 2nd Fri. of even months, 10:00 AM, Human Services Office. Contact Evie Boykan at 206 -433 -7180. Human Services Providers: Quarterly, 11:30 AM, TCC (2009 3/20, 6/19, 9/18, and 12/4). Contact Stacy Hansen at 206 433 -7181. Library Advisory Board: 3rd Wed., 7:00 PM, Foster Library. Contact Stephanie Gardner at 206 767 -2342. Lodging Tax Advisory Committee: Every other month (or as scheduled), 12:00 NOON. Contact Katherine Kertzman at 206- 575 -2489. Parks Commission: 3rd Wed., 5:30 PM, Senior Game Room at Community Center. Contact Stephanie Gardner at 206- 767 -2342. Planning Commission /Board of Architectural Review: 4th Thurs., except 2nd Thursday in Nov. Dec., 7:00 PM, Council Chambers at City Hall. Contact Wynetta Bivens at 206 -431 -3670. Transportation Committee: 1st 3rd Mon., 5:00 PM, Conf. Room #1. Tukwila Historical Society: 3rd Thurs., 7:00 PM (meeting location varies). Contact Pat Brodin at 206 -433 -1860. Y Utilities Committee: 2nd 4th Tues., 5:00 PM, Conf. Room 81. Agenda items for 3/10/09 meeting: (A) Tukwila Pond Alurn Injection and Aeration Project. (B) 2009 solid waste rate increase.