HomeMy WebLinkAboutReg 2004-12-06 Item 8B - Interlocal Agreement - Streamlined Sales Tax Cities Coalition with City of KentCAS NUMBER: 04-175
CATEGORY
SPONSOR
SPONSOR'S
SUMMARY
EXPENDITURE REQUIRED
$Approximatly 5,000
Fund Source: MAYOR'S DISCRETIONARY FUNDING
Comments:
12/6/04
COUNCIL AGENDA SYNOPSIS
Meeting Date Prepared by
12/06/04 ARD
Discussion Motion Resolution
Mtg Date Mtg Date 12/6/04 Mtg Date
Council Mayor Adm Svcs DCD
Initials
Mayor's review
t
EM INFORMATION
AGENDA ITEM TITLE Interlocal Agreement with City of Kent
Interlocal Agreement is necessary to protect the Sales Tax Revenue in Tukwila.
See Staff Report.
REVIEWED BY COW Mtg. CA &P Cmte
Utilities Cmte Arts Comm.
DATE: 12/6/04
RECOMMENDATIONS:
SPONSOR /ADMIN. Approve as Presented
COMMTFI'hE N/A
AMOUNT BUDGETED
I ORIGINAL AGENDA DATE: 12/6/04
F &S Cmte
Parks Comm
(^Corul review
IAN
V ENTS
Staff Report from Alan Doerschel dated December 2, 2004
Proposed Interlocal Agreement
IrEMNo.
Bb
Ordinance Bid Award Public Hearing Other
Mtg Date Mtg Date Mtg Date Mtg Date
Finance Fire Legal P&'R Police PW
Transportation Cmte
Planning Comm.
APPROPRIATION REQUIRED
To: Mayor Tukwila City Council
From: Alan R. Doerschel
Date: December 2, 2004
Subject: Interlocal Agreement Regarding Streamline Sales Tax Project
The attached Interlocal Agreement is necessary to provide a coordinated response related
to the maintenance of certain Cities Sales Tax generation ability. Approximately forty
cities with attached group in the Interlocal Agreement being the principal players have
been working for nearly two years to fashion a strategy that would protect our respective
Sales Tax base.
The Interlocal Agreement will allow us to generate resources to lobby for legislative
relief. The potential negative impact on Tukwila is huge. This Interlocal is essential to
provide a coordinated response.
The City Attorney and WCIA have received this Interlocal Agreement and they have no
problem with this document.
INTERLOCAL AGREEMENT
BETWEEN THE CITY OF KENT AND THE CITIES OF AUBURN,
BOTHELL, BURLINGTON, COLLEGE PLACE, EVERETT,
ISSAQUAH, OLYMPIA, PUYALLUP, REDMOND, RENTON,
SEDRO WOOLEY, TUKWILA, AND WOODINVILLE,
REGARDING PAYMENT AND SUPERVISION FOR SALES TAX
SOURCING LOBBYIST SERVICES
THIS INTERLOCAL A GREEMENT "Agreement) i s e ntered i nto b etween t he
CITY OF KENT, "Kent and the Cities of AUBURN, BOTHELL, BURLINGTON,
COLLEGE PLACE, EVERETT, ISSAQUAH, OLYMPIA, PUYALLUP, REDMOND,
RENTON, SEDRO WOOLEY, TUKWILA, WOODINVILLE, and other cities that later
join this Agreement (collectively, the "cities
RECITALS
1. The cities are public agencies as defined by Ch. 39.34 of the Revised Code
of Washington, and may enter into interlocal agreements on the basis of mutual
advantage to provide services and facilities in the manner and pursuant to forms of
governmental organization that will accord best with geographic, economic, population,
and other factors influencing the needs and development of local communities.
2. The cities have determined that proposed legislation intended to be
presented to the state legislature in 2005, commonly referred to as "Sales Tax
Streamlining" "SST legislation, poses a real economic threat to their tax structure and
revenue base.
3. The potential revenue loss that this legislation may cause is so severe that
the cities have determined to hire one or more lobbyists to monitor SST legislation and to
assist the cities to develop and propose alternative legislation.
NOW THEREFORE, in consideration of the terms and provisions contained
herein, the cities agree as follows:
SST LOBBYIST INTERLOCAL AGREEMENT Page 1 of 11
AGREEMENT
4. Purpose. It is the purpose of this Agreement to collectively pay for the
lobbying services needed to represent the cities' interests in any proposed SST
legislation.
5. Duration. This Agreement will take effect on the last date entered under
the signature blocks listed at the end of this Agreement. Unless terminated by any party
in accordance with Section 8, Termination, this Agreement shall remain in full force and
effect for not more than three (3) years. This Agreement may be extended by mutual
written agreement of the parties.
6. Administration of Agreement. Kent will administer this Agreement to
carry out its purpose. Kent, through an independent contractor, will provide the lobbying
services addressed in this Agreement, and will be responsible for compliance with all
laws, rules, and regulations, specifically including, without limitation, complying with all
reporting requirements of the Washington State Public Disclosure Commission. A
general description of these services is attached and incorporated as Exhibit A.
7. Payment. In consideration of this Agreement and the administrative
services provided by Kent, each participating city will pay Kent its proportionate share
for lobbying services obtained by Kent.
7.1 The proportionate share of each city shall be equal to the
proportionate share of all other participating cities regardless of the city's
population.
7.2 The projected quarterly cost of services described in Exhibit A is
$25,800, which amount includes maximum allowable reimbursement expenses.
There are currently fourteen (14) cities that wish to participate in this Agreement.
Therefore, based upon the current estimate of the quarterly cost of services, and
the number of cities currently participating in this Agreement, each city will
contribute an equal amount of these costs per quarter based on the number of
participating cities. This is the maximum monthly amount to be paid under this
Agreement and shall not be exceeded without the prior written authorization of
the participating cities.
7.3 In the event additional cities join this Agreement, the proportionate
share of each city shall be reduced accordingly. In the event fewer cities
participate in this Agreement or a city or cities terminate their participation, the
proportionate share of each remaining participating city shall increase
accordingly.
7.4 Kent will deliver a quarterly invoice to the participating cities,
which will be due and payable to Kent no later than forty-five (45) calendar days
from the date of billing. Kent intends to commence lobbying services on
November 15, 2004. The first quarterly billing statement shall be based on the
services provided b etween the dates of November 15, 2004, and December 31,
2004.
7.5 While it is recognized that some cities may not be able to sign this
Agreement before November 15, 2004, it is agreed that the cities will benefit from
the services provided as of November 15. Therefore, it is presumed that a city
which enters and signs this Agreement agrees to pay for services performed as of
November 15, 2004, regardless of the date of signing.
SST LOBBYIST INTERLOCAL AGREEMENT Page 2 of 11
8. Termination.
8.1 Termination by Notice. Any p articipating c ity m ay t erminate i is
participation in this Agreement by providing at least thirty (30) calendar days
prior written notice to all other participating cities. The terminating city must pay
the full share of fees due for the quarter within which the withdrawal becomes
effective, even if the terminating city does not use or benefit from those services
for the entire quarterly period. Except as provided in section 8.2, the termination
of participation by a city shall not result in the termination of this Agreement with
respect to the other cities.
8.2 Termination by Mutual Written Agreement. This Agreement may
be terminated at any time by mutual written agreement of a majority of the then
participating cities.
8.3 Termination by Expiration of Term. In any event, this Agreement
will terminate three (3) years from its effective date.
8.4 Distribution of Assets upon Termination. It is not anticipated that
any assets will be acquired as a result of participating in this Agreement. If,
however, any assets are acquired with joint funds of the cities, those assets will be
equally divided among the cities at the asset's fair market value upon termination.
The value of the assets shall be determined by using commonly accepted methods
of valuation.
9. Miscellaneous.
9.1 Amendments. This Agreement may only be amended by mutual
written agreement of the participating cities.
9.2 Severability. If any section of this Agreement is adjudicated to be
invalid, such action shall not affect the validity of any section not so adjudicated.
9.3 Interpretation. The legal presumption that an ambiguous term of
this Agreement should be interpreted against the party who prepared the
Agreement shall not apply.
9.4 Ownership of Property. Any property owned and used by Kent in
connection with this Agreement shall remain the property of Kent, and any
property owned and used by any other participating city shall remain the property
of that city, unless otherwise specifically provided for in this Agreement.
9.5 Notice. All communications regarding this Agreement will be sent
to the parties at the addresses listed on the signature page of the Agreement,
unless n otified t o t he c ontrary. A ny w ritten notice will become effective upon
SST LOBBYIST INTERLOCAL AGREEMENT Page 3 of 11
personal service or three (3) business days after the date of mailing by registered
or certified mail, and will be deemed sufficiently given if sent to the addressee at
the address stated in this Agreement or any other address if later specified in
writing.
9.6 Counterparts. This Agreement may be entered into any number of
counterparts which, when taken collectively, will constitute one entire agreement.
7. Ratification and Confirmation. All acts taken prior to the effective date of
this Agreement that are consistent with the intent and purpose of same are hereby ratified
and confirmed, retroactive to November 15, 2004.
IN WITNESS, the parties below execute this Agreement, which shall become
effective on the last date entered below.
AUBURN: KENT:
CITY OF AUBURN CITY OF KENT
By: By:
(signature)
(Title)
Print Name:
Its
DATE:
SST LOBBYIST INTERLOCAL AGREEMENT Page 4 of 11
Print Name: Jim White
Its Mayor
DATE:
NOTICES TO BE SENT TO: NOTICES TO BE SENT TO:
(telephone) (telephone)
(facsimile) (facsimile)
APPROVED AS TO FORM: APPROVED AS TO FORM:
BOTHELL: BURLINGTON:
CITY OF BOTHELL CITY OF BURLINGTON
By: By:
(signature) (signature)
Print Name: Print Name:
Its Its
(Title) (Title)
DATE: DATE:
NOTICES TO BE SENT TO: NOTICES TO BE SENT TO:
(telephone) (telephone)
(facsimile) (facsimile)
APPROVED AS TO FORM: APPROVED AS TO FORM:
SST LOBBYIST INTERLOCAL AGREEMENT Page 5 of 11
COLLEGE PLACE: EVERETT:
CITY OF COLLEGE PLACE CITY OF EVERETT
By: By:
(signature) (signature)
Print Name: Print Name:
Its Its
(Title) (Title)
DATE: DATE:
NOTICES TO BE SENT TO: NOTICES TO BE SENT TO:
(telephone)
(facsimile)
APPROVED AS TO FORM: APPROVED AS TO FORM:
SST LOBBYIST INTERLOCAL AGREEMENT Page 6 of 11
1
(telephone)
(facsimile)
ISSAQUAH: OLYMPIA:
CITY OF ISSAQUAH CITY OF OLYMPIA
By: By:
(signature) (signature)
Print Name: Print Name:
Its Its
(Title) (Title)
DATE: DATE:
NOTICES TO BE SENT TO: NOTICES TO BE SENT TO:
(telephone) (telephone)
(facsimile) (facsimile)
APPROVED AS TO FORM: APPROVED AS TO FORM:
SST LOBBYIST INTERLOCAL AGREEMENT Page 7 of 11
PUYALLUP: REDMOND:
CITY OF PUYALLUP CITY OF REDMOND
By: By:
(signature) (signature)
Print Name: Print Name:
Its Its
(Title) (Title)
DATE: DATE:
NOTICES TO BE SENT TO: NOTICES TO BE SENT TO:
(telephone) (telephone)
(facsimile) (facsimile)
APPROVED AS TO FORM: APPROVED AS TO FORM:
SST LOBBYIST INTERLOCAL AGREEMENT Page 8 of 11
RENTON: SEDRO WOOLEY:
CITY OF RENTON CITY OF SEDRO WOOLEY
By: By:
(signature)
Print Name: Print Name:
Its Its
(Title)
DATE: DATE:
NOTICES TO BE SENT TO: NOTICES TO BE SENT TO:
(telephone)
(facsimile)
SST LOBBYIST INTERLOCAL AGREEMENT Page 9 of 11
(signature)
(Title)
(telephone)
(facsimile)
APPROVED AS TO FORM: APPROVED AS TO FORM:
TUKWILA: WOODINVILLE:
CITY OF TUKWILA CITY OF WOODINVILLE
By: By:
(signature) (signature)
Print Name: Print Name:
Its Its
(Title) (Title)
DATE: DATE:
NOTICES TO BE SENT TO: NOTICES TO BE SENT TO:
(telephone) (telephone)
(facsimile) (facsimile)
APPROVED AS TO FORM: APPROVED AS TO FORM:
P: \Civi ATTORNBYSTat\ SST. Lobbylnterlocal .111004.DRAFT.doc
SST LOBBYIST INTERLOCAL AGREEMENT Page 10 of 11
EXHIBIT "A" GENERAL SCOPE OF SERVICES
A. Provide general lobbying assistance to the City of Kent and cities working in coalition with Kent,
regarding the issue of "Streamlined Sales Tax" (SST) and particularly with regard to the local sales
tax "sourcing" provisions of SST.
B. Assist the City of Kent, and cities working in coalition with Kent, with development of an overall
strategy and plan related to legislation, stakeholder outreach, informational materials, and financial
modeling.
C. Participate in strategy sessions and discussions regarding the SST /sourcing issue with officials of the
City of Kent and other cities working in coalition with Kent, prior to the start of the 2005 Session of
the Washington State Legislature.
D. Attend meetings with key state legislators that may take part prior to the start of the 2005 Session of
the Washington State Legislature.
E. Represent the interests of Kent and other cities working in coalition with Kent, on SST /sourcing in
Olympia, particularly with regard to: communication with legislative leadership; lawmakers who chair
and/or have membership of fiscal committees with jurisdiction over the SST /sourcing issue; the
Governor's Office and Office of Financial Management; the State Department of Revenue; the
Association of Washington Cities (AWC) as necessary; and other parties as jointly determined to be
necessary by the City and Contractor.
F. Assist the City of Kent and cities working in coalition with Kent on preparation, background, and
information that may be necessary for any legislative hearing or meeting, or any Executive Branch
meeting, with respect to SST /sourcing.
G. Develop a main point of contact for regular reporting on the progress and status of the SST /sourcing
issue, as well as a regular pattern of reporting in writing or verbally. Main point of reporting contact in
Olympia shall be the City of Kent's Government Affairs Consultant Doug Levy, Owner /Consultant,
Outcomes By Levy. Main point of reporting contact for SST /sourcing matters outside of Olympia
shall be Mike Martin, Chief Administrative Officer, City of Kent.
H. Complete in a timely and accurate fashion all forms and reports required of lobbyists by the state and
other lawful jurisdictions.
I. Provide timely telephone or e-mail updates as jointly determined necessary by the City and Contractor.
SST LOBBYIST INTERLOCAL AGREEMENT Page 11 of 11