HomeMy WebLinkAboutCOW 2006-08-28 Item 3F - Motion - Utitility Tax Ordinance Review and Reaffirmation COUNCIL AGENDA SYNOPSIS
c ,':ILA N /9'•ti
s rinarr I7E;1rNo.
-J l 0 r i 10 A Ieai,RDau 1 Prparedcy 1 .11aor'rrr 1 _Cauth /reile;; 1
<F �I ty;
'1 r 08/28/06 KAF (/I/,�
N 3,f'
..is I 1 1 1
I i
1 1 1 i
ITEM INFORMATION
I CAS NUMBER: 06-098 (ORIGINAL AG I :NDA DATE: AUGUST 28, 2006
AGIINU 1 ITEM TIME Reaffirm the increases to the utility tax rate and Seattle City Light contract
payments scheduled for 2007.
CATEGORY Diassion Motion Rmiution Ordinance Bid Award Public Hearty Other
:'Os Dat 08/28/06 AIII Date 09/05/06 Mfg Dot Mtg Date Mfg Date 1IQ Dote MQ Date
SPONSOR Coundi/ Mgyor Adra Svcs DCD Finance Fire Le6al P &R Police PIP
SPONSOR'S Ordinance 1998 established the utility tax and set forth a schedule of rate increases with a
SUMMARY requirement that the City Council review the necessity of the change. The utility tax rate
is scheduled to increase from 5% to 6% in 2007. In addition, Ordinance 2012 granted
Seattle City Light the privelege of operating an electric utility within the City. The contract
payment for this privelege is scheduled to increase from 5% to 6% in 2007. In keeping
with past practice, it is requested that the Council reaffirm both scheduled increases.
REVIEWED BY COW Mtg. CA &P Cmte F&S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 08/21/06
RECOMMENDATIONS:
SPONSOR /ADMIN. Forward to COW Meeting for Council's motion to approve implement.
COMMITTEE Unanimous approval; forward to COW Meeting on 08/28/06.
COST IMPACT FUND SOURCE
EXPIiN Durum: RIiQUIRI ID
AMOUNT BUDGETED APPROPRIATION REQUIRED
$n /a $n /a $n /a J
Fund Source: N/A
Comments: N/A
MTG. DATE RECORD OF COUNCIL ACTION I
I
I MTG. DATE ATTACHMENTS
08/28/06 Memorandum to Mayor and Finance Safety Committee, Dated 08/17/06
Ordinance No. 1998, Dated Nov. 18, 2002
Ordinance No. 2012, Dated Jan. 21, 2003
F &S Committee Meeting Minutes Aug. 21, 2006 J. 1
1
I
Memorandum
To: Steve Mullet, Mayor
Finance Safety Committee
From: Kevin Fuhrer, Finance Director Finance Department
Date: 8/17/06
Re: 2007 Utility Tax Rate Scheduled Increase
L Issue:
To bring into discussion the requirement that the Tukwila City Colman must review and
reaffirm that the 1% increase in the Utility Tax rate, scheduled for the calendar years
2007 and beyond, is still necessary. And, likewise, while the Seattle City Light franchise
agreement does not require a review of the same, the intent is to similarly call for the
review and reaffirmation of a 1% increase which should also be simultaneously
considered along with the scheduled Utility Tax rate change.
IL Barkarommd:
Ordinance No. 1998 was approved on November 18, 2002 by the City Council of the
City of Tukwila, Washington, establishing a Utility Tax to provide revenue for city
services and capital requirements; establishing a special referendum procedure; setting
penalties for non compliance; providing for severability; and establishing an effective
date. This Ordinance specifically requires that the City Council will review the 1% rate
increase scheduled for 2007 to determine if it is necessary before it is implemented.
Likewise, Ordinance No. 2012 was approved on January 1, 2003 by the City Council of
the City of Tukwila, Washington, granting Seattle City Light (SCL) —an electric utility
owned and operated by the City of Seattle, a municipal corporation —a non exclusive
franchise to construct, maintain, operate, replace and repair an electric light and power
system in, across, over, along, under, through, and below certain designated public rights
of-way of the City of Tukwila, Washington; providing for severability; and establishing
an effective date.
However, while there is no language specifically written that the City Council will review
the scheduled SCL franchise agreement rate increase for 2007 to determine if it is
necessary before it is implemented, it has been recommended in the past that the City
should consider and acknowledge this during the same Mime the Council makes known
the Utility Tax rate increase.
7J
Memorandum- 20071Itil Tax Rate Scheduled increase (Gmt'd.l
III. Discussion and Analysis:
A review —and subsequent approval —by the City Council of the enabling ordinance will
raise the existing rate from 5% to the scheduled 6% rate for calendar years 2007 and
beyond.
Additionally, while the Seattle City Light franchise agreement does not require a review,
the intent is that the City should likewise consider and acknowledge implementing the
scheduled 1% franchise fee rate increase for the calendar years 2007 and beyond as
Council makes known the Utility Tax rate increase.
The adopted 2006 -2011 Financial Planning Model assumes a 6% utility tax rate in 2007
and beyond.
IV. Recommendation:
Upon completion of Committee's review, discussion, analysis and reaffirmation of the
Scheduled 2007 Utility Tax and SCL franchise fee rate increases, a request should be
made to have the discussion move forward to the Committee of the Whole with a more
formal presentation to the City Council in support of approval for implementation.
Attachments
s
W
r5 a
City of Tukwila
wasbington
Ordinance No. 14 8
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ESTABLISHING A UTILITY TAX
TO PROVIDE REVENUE FOR CITY SERVICES AND CAPITAL
REQUIREMENTS; ESTABLISHING A SPECIAL
REFERENDUM PROCEDURE; SETTING PENALTIES FOR
NON- COMPLIANCE; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council has determined that the Financial Planning Model
demonstrated that there will be a deficit balance in the General Government Funds by 2005;
and
WHEREAS, the City has availed itself of all appropriate revenue sources currently
authorized, and has reduced expenditures by 5% in the Financial Planning Model; and
WHEREAS, the basic City service levels would be greatly reduced without a new
source ofrevenue and
WHEREAS, the City Council has determined that the public interest is best served
by the implementation of a utility tax; and
WHEREAS, the City Council will review the rate changes scheduled for 2005 and
2007 to determine if they are necessary before they are implemented;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1 Utility Tax. The tax provided for in this ordinance shall be known as the
'utility tax,' and is levied upon the privilege of conducting an electric energy, natural or
manufactured gas, telephone, or cable television business within the City of Tukwila
effective February 1, 2003.
Section 2. Use and Accountability of Tax Proceeds. All revenues collected
piusuant to this ordinance shall be deposited into the General Fund, and shall be used for
the funding of City services or capital requirements as the Council shall direct through its
annual budget process.
Section 3. Definitions.
As used in this ordinance, unless the context or subject matter clearly requires
otherwise, the words or phrases defined in this section shall have the indicated meanings.
1. "Cable television services" means the transmission of video programming
and associated non -video signals to subscribers together with subscriber interaction, if any,
which is provided in connection with video programming.
2. 'Cellular telephone service° means any two-way voice and data telephone
or similar communications system based in whole or in substantial part on wireless
radio communications, including cellular mobile service, and which is not subject to
regulation by the Washington State Utilities and Transportation Commission. Cellular
mobile service includes other wireless radio communications services including
specialized mobile radio, personal communications services, and any other evolving
vamp/13A 5
wireless radio communications technology that accomplishes a purpose substantially
similar to cellular mobile service. Cellular telephone service is included within the
definition of "telephone business" for the purposes of this ordinance.
3. "Competitive telephone service" means the providing by any person of
telecommunications equipment or apparatus, directory advertising and lease of
telephone street directories, or service related to that equipment or apparatus such as
repair or maintenance service, if the equipment or apparatus is of a type which may be
provided by persons not subject to regulation as telephone companies under Title. 80
RCW, and for which a separate charge is made. Transmission of communication
through cellular telephones is classified as "telephone business" rather than
"competitive telephone service."
4. °Finance Director° means the Finance Director of the City of Tukwila,
Washington, or his or her designee.
5. 'Gross income° means the value r »c.:ing or accruing from the
performance of the particular business involved, including gross r ..cc, s of sales,
compensation for the rendition of services, and receipts (including all sums earned or
charged, whettler received or not) by reason of investment in the business engaged in
(excluding rentals, receipts or proceeds from the use or sale of real property or any interest
therein, and proceeds from the sale of notes, bonds, mortgages or other evidences of
indebtedness, or stocks and the lace), all without any deduction on account of the cost of
property sold, the cost of materials used, labor costs, taxes, interest or discount paid,
delivery costs or any expenses whatsoever, and without any deduction on account of losses.
6. "Pager service" means service provided by means of an electronic device
which has the ability to send or receive voice or digital messages transmitted through the
local telephone network, via satellite or any other forth of voice or data transmission
"Pager service "is included within the definition of "telephone business" for the purposes
of this
7 'Person' means any person, firm, corporation, association, or entity of any
type engaged in a business subject to taxation under this ordinance.
"Telephone business" means the business of providing access to a local
telephone network Local telephone network switching service, toll service, or coin
telephone services, or providing telephordc, video, data, pager or similar communication or
trancmi sion for hire, via a Local telephone network toll line or charnel, cable, microwave,
or similar communication or transmission system. The term includes cooperative or farmer
line telephone companies or associations operating an exchange. 'Telephone business"
does not include the providing of competitive telephone service or cable television service,
or other providing of broadcast services by radio or television stations.
Section 4. Occupations Subject to Tax Amamit There is levied upon, and shall
be collected from a person because of certain business activities engaged in or carried on in
the City of Tukwila, taxes in the amount to be determined by the application of rates given
against gross income as follows:
T. Upon a person engaged in or carrying on the business of selling, furnishing,
or transmitting electric energy, a tax equal to 4% for the calendar years 2003 and 2004; 5%
for the calendar years 2005 and 2006; and 6% for the calendar years 2007 and beyond, of the
total gross income from such business in the Clty during the period for which the tax is
due;
2. Upon a person engaged in or carrying on the business of selling, furnishing,
or transmitting gas, whether natural or manufactured, a tax equal to 4% for the calendar
years 2003 and 2004; 5% for the calendaryears 2005 and 2006; and 6% for the calendar years
2007 and beyond, of the total gross income from such business in the City during the period
for which the tax utaky Iar -2
3. Upon a person engaged in or carrying on any telephone business a tax equal
to 4% for the calendar years 2003 and 2004; 5% for the calendar years 2005 and 2006; and
6% for the calendar years 2007 and beyond, of the total gross income, including income
from intrastate long distance toll service, from such business in the City during the period
for which the taxis due;
4. Upon a person engaged in or carrying on the business of selling, furnishing
or transmitting cable television service, a tax equal to 4% for the calendar years 2003 and
2004; 5% for the calendar years 2005 and 2006; and 6% for the calendar years 2007 and
beyond, of the total gross income from such business in the City during the period for
which the tax is due
5. In addition to the automatic annual review of the Financial Planning Model,
the City Council will review the need for scheduled rate changes for 2005 and again for
2007
Section 5. Tax Year. The tax year for purposes of this utility tax shall commence
February 1, 2003 and end December 31, 2003, and thereafter shall commence on January 1,
and end on December 31st each year.
Section 6. Exceptions and Deductions. There is excepted and deducted from the
total gross income upon which the tax is compute&
1. That part of the total gross income derived from business which the Oty is
prohibited from taxing under the constitution or laws of the United States and the
constitution or laws of the State of Washington.
2. Income derived from that portion of network telephone service as defined
in RCW 82.04065, which represents charges to another telecommunications company, as
defined in RCW 80.04010 for connecting fees, switching charges, or carrier access charges
relating to intrastate toll telephone services; or for access to, or charges for, interstate
services; or charges for network telephone service that is purchased for the purpose of
resale.
3. Adjustments made to a billing or customer account in order to reverse a
billing or charge that was not properly a debt of the customer.
4. Cash discounts allowed and actually granted to customers of the taxpayer
during the tax year.
5. Uncollectible debts written off the taxpayer's books during the tax year. If
subsequently collected, the income shall be reported for the period in which collected.
Section 7. Monthly Installments. The tax imposed by Section 4 of this ordinance
shall be due and payable in monthly installments, and remittance therefore shall be made
on or before the last day of the month following the end of the monthly period in which the
tax is accrued. Annual returns for smaller entities may be allowed upon written approval
from the Finance Director. On or before said due date, the taxpayer shall file with the
Finance Director a written return upon such form and setting forth such information as the
Finance Director shall reasonably require relating to the accurate computation and
collection of this tax, together with the payment of the amount
Section 8. Taxpayefs Records, Each taxpayer shall keep records reflecting the
amount of the taxpayer's gross income on sales and services within the City, and such
records shall be open at all reasonable times for the inspection of the Finance Director or his
designee to verify information provided on any utility fax return, or to determine whether
such return is required to be fled.
Section 9. Failure to Make Retums or to Pay the Tax in Full. If a taxpayer fails,
neglects, or refuses to make his return as and when required by this ordinance, the Finance
Director is authorized to determine the amount of the tax payable under provisions of
Section 4 of this ordinance, and to notify such taxpayer of the amount so determined. The
Mwrm.3 77
amount so fixed shall thereupon be the tax and be immediately due and payable, together
with penalty and interest Delinquent taxes, including any penalties, are subject to an
interest charge of 12 percent per year on the unpaid balance from the date any such taxes
became due as provided in Section 7 of this ordinance.
Section 10. Penalty for Delinquent Payment If a person subject to this tax fails to
pay any tax required by this ordinance within fifteen days after the due data thereof, there
shall be added to such tax a penalty of tea percent of the amount of such tax. Any tax due
under this ordinance that is unpaid and all penalties thereon shall constitute a debt to the
City and may be collected by court proceedings, which remedy shall be in addition to all
other remedies.
Section 11 Overpayment of Tax. Money paid to the City through error, or
otherwise not in payment of the tax imposed by this ordinance, or in excess of such tax,
shall, upon discovery, be credited against any tax due or to become due from such taxpayer
hereunder, provided however, that overpayments extending beyond one year prior to
notification of the City shall not be refunded. If such taxpayer has ceased doing business in
the City, any such overpayment shall be refunded to the taxpayer.
Section 12. Noncompliance Penalty.
A. No person subject to this ordinance shall fail or refuse to file tax returns or to
pay tax when due, nor shall any person make a false statement or representation in, or in
connection with, any such tax return, or otherwise violate or refuse to comply with this
ordinance or with any rule promulgated pursuant to Section 14 herein.
B. In addition to the interest and delinquent filing penalties set forth above, a
willful violation of or failure to comply with this ordinance is a civil infraction, subject to a
fine of up to $250 for each day that a violation continues.
Section 13. Appeal. A taxpayer aggrieved by the amount of the tax, penalties,
interest, or civil infraction fine determined to be due by the Finance Director or his
designee, under the provisions of this ordinance, may appeal such determination to the
City of Tukwila's City Administrator or his or her designee.
Section it Finance Director to Make Rules. The Finance Director shall have the
power to adopt and enforce rules and regulations not inconsistent with this ordinance or
with the law for the purposes of carrying out the provisions thereof
Section 15. Tax relief The Finance Director will develop and propose to the
Council a utility tax relief program for the Gty's senior and disabled low- income residents.
Section it Referendum Procedure. The provisions of this ordinance are subject to
the referendum procedure as follows
1. A referendum petition seeking to repeal this ordinance shall be filed with the
Oty Clerk who shall be designated the person to receive petitions of all types, within seven
days of the passage by the City Council of this ordinance or publication thereof, whichever
is later.
2. Within ten days, the City Clerk shall confer with the petitioner concerning the
form and style of the petition, issue an identification number for the petition, and cause to
be written a ballot title for the measure.
3. The ballot title shall be posed as a question, so that an affirmative answer to
the question and an affirmative vote on the measure results in the tax or tax rate increase
being imposed, and a negative answer to the question and a negative vote on the measure
results in the tax or tax rate increase not being imposed. The petitioner shall be notified of
the identification number and ballot title within this ten -day period.
thiayux 4
4 After notification of the identification number and ballot title, the petitioner
shall have 30 days in which to secure on petition forms the signatures of not less than 15%
of the registered voters of the City and to file the signed petitions with the City Clerk
5. Each petition form shall contain the ballot title and the full text of the measure
to be referred. The City Clerk shall verify the sufficiency of the signatures on the petitions.
If sufficient valid signatures are properly submitted, the City Clerk shall cause the
referendum measure to be submitted to the City voters at the next election within the city or
at a special election as provided pursuant to RCW 3517.260(2).
Section 17. Severability. Should arty section, paragraph, sentence, clause or phrase
of this ordinance, or its application to any person or dmimstance, be declared
unconstitutional or otherwise invalid for any reason, or should any portion of this
ordinance be pre-empted by state or federal law or regulation, such derision or pre-
emption shall not affect the validity of the remaining portions of this ordinance or its
application to other persons or circumstances.
Section 18. Effective Date. This ordinance shall be published in the official
newspaper of the Gty, and shall take effect and be in hill force five (5) days after the date of
publication.
PASSED BY THE CITY COUNCIL OF THE CITY Qp TUKWILA,
jNA GTON, at a Regular Meeting thereof this /2 day of
2002
TTIEST /AUTHENTICATED: Steven M. Mullet Mayor
tom
(lane E. Cantu, CMC, City Clerk Filed with the City Clerk: _J O.
V Passed by the City Council: /i Y- 0 z
APPROVED AS TO FORM BY: Published: /1- 2 2 D.
Effective Date: _it -2 7- o--s
Ordinance Number. q `3 er
dffic of Gty Attorney
wtir� -5
t om k
'a'
nen
City Of 'uko_tri-la
Wpahinetntt
Ordinance No-. -0tO oC
AN ORDINANCE.OF THE. CITY:OF TUKWILA, WASHINGTON, GRANTING
SEATTLE LIGHT AN ELECTRIC UTILITY :OWNED' AND' OPERATED
BY THE--CITY OF SEAT'IR.L' A MUNICIPAL CORPORATION- -A NON
EXCLUSIVE FRANCHISE TOL CONSTRUCT [MAINTAIN;'OPERATE,:REPLACE
AND REPAIR°:'AWffi:ECTRJC "L1ORT ANDIPOWER :SYSTEM =1N, "ACROSS,
-OVER, ALONG, :UNDER;:THROUGH :AND BELOW CERTAIN-DESIGNATED
PUBLIC :RIGNTS-OF -WAY OFTHE.CITt OP TUXWIIA, -WASHINGTON; PRO-
VIDING FOR SEVERABRLTYI AND=ESTABLISHING AN EFFECTIVE DATE.
WHEREAS,.. RCW 35AI1.020 grants- the City broad authority to _regulate the use of the public
right- ofway; and
WHEREAS, RCW-35A.47.040 authorizes the City `to grant nonexclusive franchises for the use
ofpubllc streets, bridgeS_-or :other structures orpiaces above or below the surface of the
ground for poles,- condults,:tunnels,.towers'ent structures,- pipes'and wires :and appurtenances
thereof for. transmissfo>tand:dtsttibution of�electrtca1 energy:.';and
WHEREAS, the Council ftids that it ls:fa the best interests orthe- health,-gaiety and welfare of
:residents bf the Tukwila community to.grant exclusive franchise to- Seattle City Light for the
operation of. an -electrtc,fight.and power within the City right-of -way;
NOW, THEREFORE,'THS CI* cOUNCIL.OP The .CITY_ OF TUKWILA, WASHING-
TON, HEREBY ORDAINS AS FOLLOWS!
Section 1. DefInitlons. The following terms contained herein, unless otherwise Indicated,
shall be_ defined as
1.1 y: City At Tukwila, a munfeipai.torporation of the Statrof Washington, specifically
including a treas. incorporated therein -as, of. the effective. date of this an any other
areas -later added.ttereta byannezation or-other means.
T.2 kw: Calendar :days.
1.3 .Director The headot the Plaaaing and Development Services Department of. the. City, or the
head of the. Public Works' Department.of the City,. or the designee of either of -these
individuals.
1.4 Fa Itd s :tAIt W1res, lines 'tablet, cenduit3; and supporting structures, :located- in
the City's; tight- ofway, :vtillzed.by the grantee in the operation rof activities authorized by this
ordinance. _'!'1ie abandonment by. grantee. of any fat rides as- defined herein shall not act to
remove the from this- detinlu6n.
1.5 tee: As- incorporated or used herein, shall refer to Seattle City Light (SCL).
1.6 Ferntlttee: A :person -Who has been granted permit by the Permitting Authority,' and SCL
eperating 6:of this- agreement:
1.7 permittin?.fghoriry: The heater the authorized to process and grant permits
reflect to perform _work in the of-waptor the head -of any agency authorized to
perform this function on the City's behalf. -Unless: otherwise indicated, all references to
Permitting Authority shalt Iodide_ the designee of the- department or agency head.
1,8 Person: An or natural person.
SCL itancruse uimnaucc
Page 2
1.9 Revenue: This term as used herein shall have the same meaning as utilized by the City of
Seattle In calculating the amount otutillty tax payable by SCL to the City of Seattle.
1.10 Rieht- of- Way:.As .used herein-shall-refer to the surface of and the space along, above and
below any street, road, highway, freeway, -lane; sidewalk, alley, court, boulevard, parkway,
drive, utility easement, and/or road right-of-way now or hereafter held or administered by the
City-of Tukwila.
1.11 SOL: -Seattle City Light,-an electric utility owned and operated by the City of Seattle, a
municipal corporation, and Its respective successors and assigns.
Section 2. Franchise Granted.
2.1 Pursuantuo RCW 35k47.040, the City hereby grants to SCL, Its heirs, successors and assigns,
subject to the terms and conditions hereinafter set forth, a franchise beginning on the
date of this ordinance.
2.2 This: franchise shall grantSCL- theright, privilege anif-authority subject to the.terms and con.
ditions hereinafter -set forth, to construct, operate, maintain,: replace and -use all necessary
equipment and facilities for an electric light and -power system IA, under, on, across, over,
through, along or below the publle.rlght -of -way located in the City of Tukwila, as approved
under. City permits issued by the Permitting:Authority pursuant to -this franchise and City
.ordinances:
23 This franchise specifically does -not authorize SCL to place facilities or to otherwise_ utilize facili-
ties In. the City's right -of viay tu provide -telecommunications, cable television, point to-point
data communications; or- similar services either via wire or wireless technologies regardless of
whether these services are:_provided to any person-; outside SCL's organization, unless
approved by -a separate agreement. This paragraph does -not restrict SCL's- ability to utilize
telemetric devices to monitor and operate its electrical distribution system vr-the usage of elec-
trical- energy
2.4 This'franchfse Is granted upon She express condition that It shall not in any manner prevent
the City from other or further franchises in, along, over, through, under, below or
across any right-of -way. Such franchise shall in no way prevent-or prohibit the City from
using any-right -of -way or other City property or affect Its jurisdiction over them or any part of
them; and the City shall retain the authority-to make all necessary changes, relocations,
repairs, maintenance, establishment, improvement;- dedication ot the same the City may
deem fit, ineluding the dedication, establishment, maintenance and improvement of all new
rights- of- way-or btherpubllc properties of every-.type and description.
2.5 Upon acceptance -by -the Grantee, this franchise shall supersede the:existing franchise entered
into between -the City and the Grantee in 1958; authorized by Tukwila Ordinance No. 262
and acceptedby Seattle Ordinance 87631. Accordingly,-once this franchise is accepted by the
Grantee, the 1958 franchise shall -have no further force or effect as of the effective date of this
franchise.
Section Z. Franchise Term. The-term of the franchise granted hereunder shall be for the
period of 15 years, counted from the last day of the calendar month in which this ordinance became
effective.
Section -4. Consideration. It is recognized by the City and by SCL that the City has the
authority to establish its own municipal.electric utility, and the authority to acquire SCL electric distri-
bution properties lathe City forthat purpose.
4.1 In consideration for the City ag Being not to exercise such authority during the term of this
franchise, SCL agrees to the following:
4.1.1 SCL shall pay the City 4% in 2003 and 2804; 5% In 2005 and 2006, and 6% as of 2007 of the
amount of revenue derived from the power portion of SCL service to customers in the City;
and shall pay the City 4% in 2003 and 2004, 5% in 2005 and 2006, and 6% as of 2007 of the
amount of revenue- derived from the distribution portion of SCL service to customers in the
City. City retains the authority to- change the above percentages, to a maximum of 6% on
the power portion of SCL service and to a maximum of 6% on the.dlstrlbution portion of SCL
service during the course of the franchise. upon one year written notice to SCL.
g2l
y
SCL Franchise Ordinance
Page 3
4.12 SCL shall not include any part of the power portion of the payment to the City provided in
Section 4.1.1 above as a 'component of any rate differential between customers served by SCL
in the City and customers by SQL In other jurisdictions.
4.1.3 SCL shall not charge greater than a b %differential in 2003 and 2004; a 7% differential in 2005
and 2006, and an 8% differential -as.of 2007 in the power portion of the-rates to customers in
the City compared to the power portion of the ratercbarged to- similar customers in the Ctty of
Seattle; any differential in the power portion of the Pates charged to customers in the City shall
be the result of-a rate-review process.canducted by the Seattle City Council. The power por-
tion of _SC: service to :customers In the 'City is approximately 60 -of the rates at the time of
entering into this franchise. Any subsequent shift Int the proportion of power -versus distribu-
tion in the -rates to SCL customers In the City-shall be the result of a rate review process
conducted by the Seattle City Council.
4.1.4 SCL shall provide the Ctty with a good faith estimate and supporting information, within a rea-
sonable time from-thecCity's request- the likely differential rate impact on the distribution
portion of the rates in the -City Which, other than the payment related to the distribution
portion of SCL service under Section 4:1.1 above, may only be created by an operational
request or requirement of the City which is different from operational standards in other areas
served by .SCL.
4.1.5 SCL -shall appoint. a member nominated by and other suburban cities to its Citizens'
-Rate Advisory Committee who will- represent the Interests- of suburban cities served in
whole or in part by:SCL.
4.2 Should the City of Seattle be prevented by :judicial or legislative action from collecting a utility
tat on- all aria part of the revenues derived by SCLfrom- customers in the City, SCL shalt
reduce- the to the City provided -in Section. -4.1.1 above by an equivalent amount;
and this entire Ag cement may be.terminated by the-City at any- tithe thereafter upon 180
days written notice. During -such notice period, however, SCL and the City shall attempt to
agree upon acceptable- substitute provisions.
4.3 Should a court of competent. jurisdiction declare the to paid to the City in Sec-
tion 4:1.1 above invalid, fn -whole of in part, -or should a.change in law make the consideration
to be paid to the-Qty In Section 4.1.1 aboveiavalid, In whole or part, this entire.Agreement
thay be terminated-by the City at any time thereafter upon 180 days written notice. During
such notice period, however, SCL and-the City shall attempt to agree upon acceptable, substi-
tute provisions.
4.4 Payments prettded :for. under this section shall be -paid monthly 30 days following the
end of each month.
Section 5.. City Ordinances -and Regulations. Nothing herein shall be deemed to direct or
restrict the City's ability:to adopt and-enforce all necessary and appropriate _ordinances regulating the
performance of the.2onditions or this- franchise, =including any reasonable ordinance made in the
eaerdse of its police powers in the interest of public safety and for the welfare of the public. The City
shall -have the authorIty -at all times to control, by appropriate regulations, the location, elevation, :and
manner of construction and maintenance of any facilities of:SCL located within the City's right -of-
way. SCi shall promptly conform with all such regulations, unless compliance would cause SCL to
violate other requirements of law
Section 6.- Right -of -Way Management. During the term of this franchise, SCL shall comply
with -the provisions of Title 11 of the Tukwila Municipal Code, known as the 'Right -Of -Way Use
Code.
Section 7; Eindergrounding. SCL,hereby affirms understanding and agreement that its
activities within the :City must comply with any undergrounding requirements established by the
City ofTukwlla; provided,.however, that any undergrowidfng resultinghnm Sdund Transit construc-
tion shall not be considered an undergrofmding requlrement-established.by the.City.of Tukwila.
7:1 7 1orm_atiam s ia1l:pravide to the City of Tukwila,- or.any entity that has. provided notice to
7) SCL of a joint trenching project pursuant to the Qty's undergrounding requirements, all rea-
sonably requested information regarding the natureand location of facilities installed, owned,
operated or maintained by SCLwIthin a proposed undergrounding area. .Said information will
be provided within a reasonable period of time, not to exceed 30 days following the request.
Page 4��
7.2 Notice. SCL shall respond to any notification of an undergrounding project proposed by the
City, within 45 -days following.such notification, withwritten commitment either to partici-
pate In the proposed project or to remove its redlines.
73 fat. SCL agrees to bear its proportionate share of all costs common to participants in any joint
trenching project, and to bear the•entlre cost of all materials and tabor particularlynecessary for
the. underground installation of its redlines and --upon the. completion of that Installation the
removal of the overhead facilities replaced_ thereby.
7.4 Civil Works; agrees to allow the Clty's construction Contractors to provide civil works on
.behalf of SCL.for any underground installation of electrical facilities required by a road or other
construction project,- provided that theClty' such works in accordance with
SCL specifications,- and.provided ihat-the.lnstallatlon s ;artlnspecte_d approved and accepted by
SCL. SCL agrees.w reimburse the City-for the cost of all civil works accepted by SCL,
provided such :costs are _not unreasonable.
Seetloa t Street Lighting. As a condition of placing its facilities in the public streets and as part
of the elecutc_servtce it provides to its custome In :Tukwila, SCL -shall instali, and furnish
equipment and:• power• for -in accordwith.pollcles and standards established by the
City_ of Tukwila.
Section 9. Implementation of Service Requirements.
9.1 Rate Information, SCL ;hail provide the City with copies of all studies,.reports, memoranda or
other. documents provided_ to the.leglslathre brandies of the-City of Seattle regarding the estab-
llsYiaient of the or-any-pottion thereof to be charged -to customers In Tukwila, within
seven- days:of the transmission Eof said documents to the legislative of. the City of
Seattle. Tukwila:Mall be provided; a reaon
sable op to- review said- documents and to
comment or ise participate 1p Seattle's rate?settlng process. SCL -shall ensure that the
City recelves reasonable advanced notice all public hearings;-or other opportunitles. for the
City represent the tnterests.of._SCL customers within-Tukwila, during Seattle's rte setting
process:
9.2 City Council to Review Rates. The Tukwila City Caundl shall have authority to establish
policies regarding :the; implementation of SCL service requirements included is Sections 7 and
=.8 of thls ordinance. SCI, shall assist the. Gouudt in establishing these policies and in
determinIng- the :impact,:1f any, sucK:po1[des have :upon SCL.customers within the City
11mILs.
9.3 Amortlzatlon.•The term of.the :Franchise herein.notwithstanding,- SCL shall amdrtize capital
expenditure-Undated In order to meet the requirements of ibis franchise in accordance with
•ttsstandard 9natidal pblldes.
9:4 Communication with City -Customers.. SCL will review with the City in advance any
planned_.communicatlon to Its customers In the City regarding the services and rates affected'
1 y this franchise:
Section 10. Planning-Coordination:
10.1 Growrh:Managenient. SCL*iees, as- follows, to- participate in the-development of; and tea-
sombre updates -to the utilities_eletnenrof the City's comprehensive plan:
10.1.1 For -SCE's service within the City limits, SCL will participate in a cooperative effort with the
City of Tukwila to develop a: Comprehensive Plan Utillues Element which meets the
requlremenu described in-RCW _3b.70A.070(4).
10.12- SCL will participate in a cooperatfve-effortwiththe City to ensure that the Utilities Element of
Tukwila's Comprehensive Plan is accurate as it relates to SCL's operations, and is updated to
ehsureit continued relevahceut reasonable intervals.
1b.1.3. SCLshall submit information related to the general location, proposed location, and capacity of
all existing and proposed electrical-lints as requested by the Director within a reasonable time,
not 00 days from receipt of a written request for.such information.
10.1.4 SCL will update information provided to the City under this Section 10 whenever there are g2
-major changes in SCE's electrical.system plans for Tukwila.
immEmmalit
SCL Franchise Ordinance
Page 5
10.2 System Development Information. -SCL will assign a representative whose responsibility
shall be to coordinate with the City on planning for CIP projects including those that involve
undergrounding. At a minlmum; coordination shall include the following:
10.2.1 By February 1 of each year, SCL shall provide the Mayor or his designee with a schedule of
its planned capital improvements, which may affect -the right of-wayfor that year;
102.2 SCL shall meet. -with the City, other franchisees and users of the right- ofway, according to a
schedule to be determined by the to schedule and_coordinate construction; and
102.3 All construction locations, activities and schedules shall be coordinated, as required by the
Mayor or his designee, to minimize publlc inconvenience, disruption or damages.
10.3. Development of- Right -nfway Standards. -SCL herein agrees -to provide the staff support neces-
sary to enable SCL to meaningfully- participate Iii the City's ongoing development of right-of-
way standards. By way of illustration and not limitation, this participation shall include atten-
dance at City planning meetings, review and comment of documents proposed for adoption,
and any other activities that required lathe formulation of right-of-way standards.
10.4 Coordination of Permitting Activities. The parties agree to attempt to reduce the number of
transactions at different locations that must be completed by a Tukwila applicant for a land we
permit as follows:
10.4.1 If the City provides office space at City Hall for SCL at no charge, SCL will assign a represen-
tative who keep hours at City Hall pursuant to a schedule mutually acceptable to
both parties, so long as there is sufficient workload. The SCL representative will participate
-with City staff In reviewing land use plans and permits requiring coordination with or
approval by SCL, including any. protect- requiring new or changed electric service or ease-
ments within the City limits.
10.5- j mergency Operations. The -City and SCL agree to cooperate In the planning and implementa-
tion of emergency response procedures.
Section 11. Service_ Quality. -SCL shall exercise the same degree of technical,- professional
and administrative quality in serving_lts.custom.ers mite City is required within the electrical
energy industry -and thetis provided -to all other customers with s(rniter circumstances within SCL's
service- territory: SCL shall at all times comply vilth the minimum regulatory standards presently in
effect or as may beameaded for the sale-and distribution -of electrical energy.
Section 12. City Use of SCL- Properiy..SCL owns properties and facilities In the City which
are essential to SCL's electrical utillty.operattons. SCL cooperate with the City in the same man•
ner as_lt does with City rat Seattle 1n aligning the operation and management of its property and
faciiltles•to serve -the goals and objectives of the-City, including the City's use of SCL property for
.:public :purposes,.while at-the same time protecting the safe and efficient operation of SCL's electric
utility.
12.1 Favorable Consideration of fay 13pauestc, SCL shall give every favorable consideration to a
requestby the City for use of SCL property, including requests by the City to use SCL prop-
erty for such publlc uses-as public parks, public open space, public trails for non motorized
transportation, surface water management, or other specifically identified public uses.
12.2 Pub. nciAdoption of Proposed tisel Each proposed use of SCL property by the City shall first be
approved -by Council action consistent with the City's Cornprehensive.Plan.
12.3 fdor oorov l p nc PI n b y L Prior to any Installation, modification or extension of
any Improvenient-an SCL property proposed by the City, the Clty shall supply SCL with
detailed drawings and specifications relating to such proposed development. No construction,
installation or modification shall be performed until the plans have been approved In writing
by SCL
12.4 permit for CItv Use of SCL Property. SCL shall provide the City with a separate permit, in a
?C/ form similar to that used for the City of Seattle, for each use of SCL property requested by the
City, which shall detail the terms of such use including provisions to assure the continued
safe and etdcientoperation of the electric utility
1
SCL Franchise Ordinance
Page 6
Section 13. Finance.
13.1 Annual Rernncillatinn. Unless otherwise provided herein, all charges between the parties,
except for rha*ges for electrical service to specific City buildings, penalties, reimbursements
for breach or other forms of cure, and payment pursuant to Sectidn 4.1.1; shall be accrued and
reconciled annually In accord following process:
13.1.1 Within 30 -days of the anniversary of the execution of this agreement, or upon such other date
as the parties may agree, the parties shall exchange itemized invoices of charges that have
been. incurred over the previous :12-month period. Said invoice shall Include all information
reasonably necessary to. allow-each party to evaluate the validity and magnitude- of each
charge.
13:12- Each.party. shall.have 45 provide the other with written notice disputing -any specific
charge. nn the other's Invoice: If an invoice is- not disputed within this period, then the
invoice w4I1 be deemed accurate.
13.1.3 Undisputed charges shall beset off against each other. The party with a remaining balance due
afterthe set=offshali.provlde a,reconciled Invoice to the other party. Said invoice shall be satis-
fied within 45'days of its receipt.
13.2 Other Ch Unless otherwise provided herein, charges between. the parties shall be paid
within 45. days of the receipt of a written invoice for said charge.
Section.l4. indemnification.
14.1 SCL hereby :releases, covenants not to bring:suit, and agrees to Indemnify, defend and hold
harmless the-City;1ts. elected dada, employees, agents. and volunteers from any and all
claims, costs, judgments, awards or liability to any person, tncluding.clalms by SCL's own
employees'to Which- SCL Might-othervrise be Immune under Title 51 RCW, arising from
injury, sickness or death of any person damage _to pmperry by-the negligent -acts or omis-
sions of SCL, Its agents, servants, officers: or e.mployeesln performing activitles authorized by
this franchise. SCL furthetaeleases and covenantsnot to bring suit, and agrees to indPmnrfy,
defend and hold-harmless the its- erected afficials.,-employees;-agents and volunteers
from ant claimsi _epsa, judgrnents, -awards or liability, to -any person-(including claims
by- SCL's, own employees, lnclirding claims to which SCL :fright otherwise have im-
inunity under 51'RCW) arising.agatnstthe City solely by virtue -of the City's ownership
or control cf .the rights- of -wa7 or-othet publle properties, or by virtue of SCL's exercise of the
rights- granted- herein, Or by virnie- of:the City's permitting :SCL's use of the right -of -way or
other publte.propertr.based upon the _inspection -or lackof ilnspection of .work performed by
SCI;.fti agents -and employees, In connection with work authorized on
the City's.property or the City has control, pursuant to this franchise or
pursuant t4 any .other permlt:_9rr approval' issued. in connection this franchise. This
covenant of lndemnlffcationshaltinclude, but not be. ltmited to, cialmsagainst- She,City arising
as a result of the negligent omissions of SCL, its agents; servants, officers or employees
in barricading,:institutingtrench safety systems, or providing -other adequate vramings of any
excavation constructionot. work la-any _right ofway or other public place in performance of
:work :or -services permitted `under -this franchise. If final Judgment Is. rendered against the City,
its.atec t_ed. officials,- e mpioyees,-.igents and volunteers, or any. of them, SCL shall satisfy the
same.
142 Inspection or acceptance by the City of.any work performed by SCL at the time of completion
of construction shall be grounds for avoidance of any of these covenants of lndemniflta-
tioa. Sa1cL1 demnlfication obligations shall extend -to claims that are not reduced to a suit and
any that may be. compromised prior -to :the culmination of any litigation or the institu-
tion of any litigation.
143 In the event SCL refuses to- undertake the- defense of any suit or any- elalm, after the City's
request for. defense and .indetanllfcatJon_has been made pursuant to the Indemnification
clauses .contained herein,. and SCL's refusal is subsequently determined by a court having
jurisdiction (Or-such other.trlbunalthat the parties shall agree to decide the matter), to have
been a-.wrongful refusal on the part of SCL, then SCL shall "pay all -of the CIty's costs and
expenses for defense -of -the action, Including reasonable attorneys' fees of recovering under
this indemnification clause as -well as any judgment the City.
C)J
nimmmmimma
J SCL Franchise Ordinance
Page 7-
14:4 Should a court of competent jurisdiction :determine that this franchise is subject to RCW
4.24:115, then, the event of pabillty for damages.arising out of bodily injury to persons or
damages to property_ tensed- by or resulting from the concurrent negligence of SCL and the
City, its officers, employees and agents SCL's liability hereunder shall only to the extent of
SCL's negligence. This waiver has -been mutually by the parties.
Section -15. Enforcement
-15.2 in addition 3o all other rights and powers retained by the City under this franchise, the City
reserves the righthto and-terminate -this franchise and all rights and privileges of the
'Grantee In the event of substantlal:violation.or breach of Its terms and _conditions. Likewise,
SCL may temnnate this franchise in the event of a substantial violation or breach of its terms
and conditions by the Clty.
13.2 Asubstantial violation or breach by a Grantee shall include, but shall not be limited to, the fol-
lowing:
152:1 An uncured.vlolatlon of any material provision of this-franchise, or any material rule, order or
regulation of•the City made pursuant to Its power to protect the public health, safety and wel-
fare;,
:1522 Aft tntentional_evasion or knowing attempt to evade -any material provision of this franchise or
practice.oPany fraud or deceit upon the system =tamers or upon the City;
1523 Failure to begin or substantially- complete any system construction or system extension as set
forth in a franchise or right -of -way use agreement;
152.4 Failure-to provide the services specified in the franchise;-
1525 Misrepresentation of material fact during negotiations relating-to this franchise or the ample-
IDentatlon thereof;
152.6..A continuous and wlllfui-pattem of grossly inadequate service and failure to respond to legiti-
mate customer complaints; or
15.2.7 An uncured.fallure to -pay fees associated with this franchise.
15.3 No violation or breach shall occur which is without fault of the Grantee or the City, or which
.!s -as a result of: circumstances beyond the Grantee's or the Qty's, reasonable. control. Neither
the Granteenor. City shall-_be excused by economic hardship nor by nonfeasance or
Malfeasance of its directors, officers, agents or employees; provided; however, that damage to
equipment causing service interruption shall be deemed to be the result of circumstances
beyond a Grantee's or the City's control U.it is mused by any negligent act or- unintended
omission of Its employees (assuming proper trainingp or agents (assuming reasonable dili-
gence in their selection), or sabotage or vandalism or malicious mischief by its employees or
agents. A Grantee, or the City, shall bear the burden of -proof in establishing the existence of
-such conditions.
15.4 Except 1rr the case of termination pursuant to Paragraph 15.1.5 of this section, prior to any ter-
mination or revocation, _the City or the Grantee .shall provide the other with detailed written
notice of any :substantial violation or material breach upon which It proposes to take action.
The party who' is allegedly In breach shall have a perlud -of 60 -days =following.such written
notice to cure -the alleged violation or breach, demonstrate to -the other's satisfaction that a
violation or breach does not exist, or submit a plan satisfactory to the other to correct the viola-
tion or breacLlf, at the end of said 60-day period, the City or the 'Grantee reasonably believes
that.a substantial violation or.material breach is continuing and the_ party in breach Is not taking
satisfactory corrective action, the other may. deciafe.that the party in- breach In default, which
declaration must be in writing. Within 20 days after receipt of a written, declaration of default
from /the party_that is alleged to,be in default may request, in writing a- hearing before a
'hearing examiner as provided -by the City's development regulations. The hearing examin-
er's decision may be appealed to any court of competent Jurisdiction.
15.5 The -City may, in its discretion; provide an additional opportunity for. the Grantee to remedy
any violation or breach and come into compliance with this agreement so as to avoid ter-
mination or revocation.
SCL Francnrse vrmuau,.c
Page 8
15.6 In addition to any other remedy provided for herein for violation of any provision, -or failure to
comply with any of the requirements of this franchise, the City may levy liquidated damages
of up to $500:00 for each of the first five days-that a violatlon-exlsts, and up to $1,000.00 for
each subsequent day that a violation exists. Payment of such liquidated damages shall not
relieve any parson of the duty.to- correct the violation.
15.7 Any violation existing for a period greater then 30 days may be remedied by the City at the
Grantee's expense.
Section 16.. Survival. An of the provisions, conditions and requirements Of Section 6, 'Right -of•
Way Management; and Section 14, Indemnification', of this franchise shall be In addition to any
and all other obligations ant llabllltles SCL may, have to the City at common law, by statute, or by
contract, and shall survive the City's banctilse to SCL for the use of the areas mentioned-In Section 2
herein, and .any renewals :or extensions thereof. All of the_provislons, conditions, regulations and
requiements- contained In this tran chile udinance -shall further be-binding upon the heirs, succes-
sors, executors, legal representatives and assigns of SCL, and all privileges, as well as
all- obligations and liabilities of SCL lane its heirs, successors and assigns .equally as if they were
sp ecincally mentioned- wherever SCL is -named herein.
Section 17. Severabillty. '1t any section, sentence, clause or phrase of this ordinance should
be held to be- invalid .of unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not-affect validity or constitutionality of .any other section, sentence,
clause or phrase of-thls fianrht:o ordinate. The parties -may amend,. repeal, add, replace or modify
,any- provlslon of to S,Franchise to preserve the Intent of the parties as expressed herein prior to any
finding of invalidity ,ar- unconstiWfloaalltp.
Section .18. Assignment._ This franchise shall not be sold, transferred, asslgted, -or disposed
of. In whole or in part-either by sale, -voluntary-or. Involuntary-merger, consolidation or otherwise,
-without-the written approval of the Clty: costs associated-with the Dity's-revlew of any transfer
proposed by the Grantee shall be reimbursed to the City by the Grantee.
18.1 An assigatnent of this_ franchise shall he deemed -to occur 11 there is an actual change In.controI
ot where ownership of 50% Or more- of the -beneficial interests, singly- or collectively, are
obtained by other parties. The :ward 'control' as wed herein is not limited _to majority stock
ownership only, but:includes actua[-worktng control In manner exercised.
18.2 Except as otherwise provided herein, the Grantee shall promptly notify the City prior to any
propoded.change in, or transfer of, or acquisition by any Other party of control of the Grantee's
company. _Every change, Vander, or acquisition of control of the Grantee's company shall
cause a review -of the proposed transfix. In the evenfhat the.City denies its consent and such
change; transfer of acquisition of- control has effected, the Franchise is terminated.
Section 19: _Node Any.nottce or Information required or permitted to be given to the parties
under this franchise may be sent to the-following- addresses unless otherwise specified:
$upertntendent of Seattle _City light Tukwila Public Works Director
700 Fitch :Avenue, :Suite 3100 •6200 Sotithcenter- Boulevard
Seattle,WA 981045031 Tukwila; WA 98188
Phone:- 206. 684.3200 Phone: 206-433-0179
Far 206-6843156 Fay 206 4313665
Section 20. Non•Walver.. The!allure of either patty to enforce any-breach or violation by the
other party of of this Franchise shall not be deemed to be' a waiver or a continuing
waiver by the nonbreacbling party of-any-subsequent preach or violation of the same or any other
provision-of-this franchise..
Sectlon.21: :Alternate Dispute Resolution. If the parties are unable to resolve disputes aris-
ing (rani. the terms of this franchise, prior to.resorting to a courtof competent jurisdiction, the parties
shall Submit the:dlspute to a_non- binding alternate dispute resolution process agreed to by the parties.
Unless otherwise agreed between the parties or determined herein, the cost of that-process shall be
shared
Section .22: Entire- Agreement. This franchise constitutes the entire understanding and
agreement between'the parties as to the. subject matter herein, and no other agreements or under.
standings, written :or otherwise, shall be binding upon the parties upon execution and acceptance
hereof 27Z—
v°
7 SCL Franchise_ Ordinance
Page 9
Section 23. Directions to My-Clerk. The City Clerk is hereby authorized and directed to
forward certified copies of this ordinance to the Grantee set forth In this ordinance. The Grantee shall
have 60 days from receipt of the certified -copyof this ordinance to accept in writing the terms of the
franchise granted to the Gtantee iwthis ordinance.
Section 24. Publication Costs; In accord State law, this ordinance shall be published in
full. The costs of said publication shall be borne by the Grantee.
Section 25: Effective Date. If accepted by the Grantee, this ordinance shad take effect and be
In full force as of March i 2003. The City Clerk is -hereby directed to publish this ordinance in full.
PASSED BY THE CITY _COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Regular Meeting thereof this 2.1 day of r 1 1604 2003.
Steven M. Mullet, Mayor
ATTEST/AUTHENTICATED:
k th
J ane E. Cantu, CMC,:City Clerk Flied with the City Clerk: D/ 7 03
Passed by the City Council: U 21 03
PROVED AS TO FORM Published: U I 24=
Effective Date: 1
Ordinance 3
ance Number. 2012,
Office of the City Attorney
1
Finance Safety Committee
August 21, 2006 5:00 p.m.
Present: Pam Carter, Chair; Jim Haggerton, and Verna Griffin, council members.
Rhonda Berry, City Administrator; Kevin Fuhrer Director of Finance; Don Lincoln, Police
Commander; Diane Jenkins, Administrative Assistant to the City Council; Al Dams, Assistant
Manager, King County Animal Services; and Chuck Parrish, community member
Business Aaenda
A. Utility Tax ordinance review and reaffirmation
Mr Fuhrer conveyed that Ordinance 1998 established the City utility tax. The ordinance was adopted
on November 18, 2002 with an effective date of January 1, 2003. The ordinance requires the Council
to review and reaffirm the 1% increase scheduled for 2007 (increasing the rate from 5% to 6%). The
expected increase in utility tax revenue is approximately 5790,000. Administration believes these
additional revenues are needed as the 2007 preliminary budget is being developed. Another
consideration is that the rate increase was assumed in the adopted 2006 2011 Financial Planning
Model and Capital Improvement Program. On a related note, Ordinance 2012 establishes a contract
with Seattle City Light (SCL) to operate an electrical utility within the City This ordinance was
adopted on January 21, 2003 with‘an effective date of March 1, 2003. A provision in the ordinance
requires SCL to tender a percentage contract payment for the privilege of operating the utility The
percentage is also scheduled to increase from 5% to 6% effective January 1, 2007 While Ordinance
2012 does not require the Council to reaffirm the rate increase, it has been a matter of practice.
Ms. Carter noted that City of Tukwila was one of the last cities to implement this tax. Most of the
revenue collected comes from commercial businesses. Ms. Berry conveyed that the City provides
rebates to those residents who qualify Mr Haggerton pointed out that the Council opted for a
graduated schedule rather than implementing a flat 6% tax to make it easier on consumers. By
bringing it before the council, it also allows an opportunity for citizen input. Ms. Carter asked who was
nominated by the City and other suburban cities to serve on Seattle City Light's Citizen's Rate
Advisory Committee. Forward to August 28 Committee of the Whole meeting.
B. Purchase order for Falcon digital audiolvideo body wire system from seizure funds
Commander Lincoln explained that the police department has identified covert surveillance /recording
equipment (commonly referred as a body wire) that would enhance investigation and prosecution of
cases. Current covert operations use a body wire with FM technology which can be scanned and
cannot be transmitted to a standard recording device. This new equipment uses digital technology for
audio and video. This technology is also subjected to being scanned but the transmitter can be
tumed off. Also, it can be monitored with a laptop computer In addition, there is a safety transmitter
to help ensure the safety of the officer It is proposed to purchase a covert surveillance /recording kit
(body wire) as sole source from Adaptive Digital Systems. They are recognized in the law
enforcement community as a leader in this area. This equipment, 510,450, will be purchased with
funds in the seizure account. Ms. Berry related that because it is under 525,000, this committee can
authorize the purchase and the entire council would be notified. The committee authorized the
expenditure. Discussion,
C. A resolution supporting the Automated Fingerprint Identification System (AFIS) levy
Commander Uncoln explained that the Automated Fingerprint Identification System (AFIS) levy will
appear on the September 19 ballot and requested the Council adopt a resolution in support of this
levy Fingerprints are scanned into AFIS and transmitted over a secure network and compared to a
database to identify the prints. Also, the system is used to store DNA, booking photos, and palm
prints. He reviewed the upgrades planned for AFIS. It is estimated that this would cost S22 per year
for the owner of a 5400,000 home. Forward to August 28 Committee of the Whole meeting.
Following discussion on AFIS, Ms. Berry asked for an brief update on reporting of sexual offenders.
Commander Lincoln noted that he would be attending a national conference focusing on sexual
offenders and offered to come back and share the information. To be discussed at future Finance
and Safety Committee meeting.
U
Finance Safety Committee 2
August 21, 2006
D. Animal Control Services
Ms. Berry remarked that the topic of animal control was discussed at the August 7 Finance and
Safety meeting. She contacted the cities of Shoreline and Kirkland who are very pleased with the
animal control services they are receiving under the pilot program. The City of Tukwila has a pick -up
truck available. The outstanding issue dealt with which ordinance would be enforced if there was a
conflict. Mr Dams explained that the problem centers around the appeal process. Cities are
required to adopt substantially similar ordinances. King County would not have legal standing to
enforce certain provisions. It is possible that King County Board of Appeals could be used to hear
appeals or perhaps the City of Tukwila could possibly make provision for appeals in its ordinance.
These avenues will be explored. Under the terms of pilot agreement, the city provides direction to the
officer The animal control officer could use City of Tukwila citations for certain violations such as
dangerous dogs. Ms. Carter asked that information on how to contact animal control officers during
off-hours be provided. Mr Dams conveyed that this type of service allows the City to quickly change
priorities; you are able to direct the animal control officer Ms. Berry noted that code enforcement
officers receive many phone calls on barking dogs. Ms. Griffin suggested that an article be placed in
the Hazelnut to provide information to citizens on what to do and what to expect. Communication is
very important. Mr Dams noted that time should be set aside for the animal control officer to return
phone calls and to follow -up and inform residents on what actions were taken. As time progresses, it
is hoped to give the animal control officer more authority to make decisions quickly Some appeals
may be lost but it will be a more responsive system. A draft of the interlocal agreement will be
developed. Discussion.
Miscellaneous
Ms. Griffin noted that at °Night Out Against Crime, several people who live in the Terrace Apartments
complained about the noise wafting up from Gordy's Restaurant. Ms. Berry conveyed that there are
noise ordinances; she will let them know about the complaint.
Adjournment 6:20 p.m.
Committee Chair Approval
Minutes by DJ.
90