HomeMy WebLinkAboutCOW 2010-11-08 Item 3C - Ordinance - Amend TMC Chapter 5.04 "Business Licenses and Regulations" COUNCIL AGENDA SYNOPSIS
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ITEM INFORMATION
I CAS NUMBER: 10-125 1 ORIGINAL AGENDA DATE: NOVEMBER 8, 2010
AGI? ND,\ ITEM Ordinance amending TMC Chapter 5.04 Business Licenses and Regulations,
Repealing TMC Chapters 5.16 Card and Pool Rooms and Chapter 5.40 Massage
Establishments.
C.\'I'1 GURY Discussion Motion Resolution Ordinance I I Bid Award Pub/icHearing [1 Other
A4tg Date 11/08/10 Mtg Date Mtg Date Mtg Date 11/15/10 Mtg Date Mtg Date Meg Date
1SP 1 1 Counal Ma Adrn Svcs DCD Finance Fzre 1 Legal 1 1 P&'R l Police I I PI-V
SPONSOR'S City Council is being asked to approve an ordinance to update the issuing department,
SUMMARY clarify procedures for denial or revocation and repeal of TMC Chapter 5.16 and TMC
Chapter 5.40, which are no longer needed.
This item is scheduled for Council consideration at the 11/08/10 Committee of the Whole
and 11/15/10 Regular Council meeting.
RI?V II?W1 ,D BY COW Mtg. 1l CA &P Cmte F &S Cmte 1 Transportation Cmte
Utiltttes Cmte Arts Comm. Li Parks Comm. 1 1 Planning Comm.
DATE: 11/02/10
RECOMMENDATIONS:
SPONSOR /ADMIN. Finance
COMMII Unanimous approval; Forward to Committee of the Whole
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
11/08/10
11/15/10
MTG. DATE ATTACHMENTS
11/08/10 Informational Memorandum dated 10/26/10
Draft Ordinance
Minutes from the Finance and Safety Committee Meeting of 11/2/10
11/15/10
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J AW 1I.A''
g"- City of Tukwila
a f: "i Jim Haggerton, Mayor
90= INFORMATIONAL MEMORANDUM
TO. Mayor Haggerton
Finance and Safety Committee
FROM: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator
DATE: October 26, 2010
SUBJECT: Denial or Revocation of Business License(s) Resulting from
Unpaid /Delinquent Accounts, Repealing Codes no longer Current,
Changing Language to reflect Finance assuming Business Licensing from
the City Clerk
ISSUE
The City currently has a number of unpaid and /or delinquent customer accounts (including utility
payments, non sufficient fund checks and accounts receivables) whose collectability could
increase if there was enforceable action that could be taken in response to non payment.
TMC Title 5 Business Licenses and Regulations, Chapter 5.16 "Card and Pool Rooms Chapter
5.40 "Massage Establishments" are no longer needed because no State Code require pool
tables to be separate from areas where minors are allowed and RCW 35.21.692 does not allow
or impose requirements that are different than other businesses if the massage establishment
has a massage practitioner's license issued by the State.
The Finance Department has assumed Business Licenses from the City Clerk's Office.
Language in the Code needs to be updated to reflect this change.
BACKGROUND
Current Tukwila Municipal Code, Section 5.04.110 addresses the denial and revocation of
business licenses that were 1) procured by fraud or false information in the application, 2) non-
compliance of building, structure, equipment, operation or 3) location of the business for which
the license was issued, or the license holder has knowingly violated any provisions of any
chapter of the Tukwila Municipal Code.
Repealing Chapter 5.16 "Card Pool Rooms" Per the City Attorney, this language is old and
probably written when it was common for pool tables to only be in bars etc. Currently there is
not any State Code requiring pool tables to be separate from areas where minors are allowed.
Repealing Chapter 5.40 "Massage Establishments" Per RCW 35.21.692 we cannot charge a
massage business more or impose requirements that are different than other businesses such
as therapists (if they have a massage practitioner's license issued by the State). Therefore we
require proof of their massage practitioner's license from applicable businesses each year.
Effective November 15, 2010, the Finance Department will be assuming all Business License
responsibilities from the City Clerk's Office. The current language in the Code refers to the City
Clerk and needs to be changed to the Finance Director.
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INFORMATIONAL MEMO
Page 2
DISCUSSION
The current ordinance addresses reasons for denial and revocation of a business license as
mentioned above; however, it does not address revocation or denial as a penalty for non-
payment. If the City added a new section to the existing ordinance addressing licensee default
in any payment of any fee, or tax due to the City under the TMC or City Policy, that would
constitute grounds for denial or revocation of their business license until said fee or tax was
paid.
Existing TMC 5.16 "Card and Pool Rooms" was created in 1951, when it was common for pool
tables to be located in bars and /or taverns etc. Currently there are not any State Laws that
state that pool tables must be separated from areas where minors are allowed. Today this type
of establishment is required to get a business license and each pool table is licensed as well.
Existing TMC 5.40 "Massage Establishments" since RCW dictates and regulates Massage
Establishments, it is no longer necessary for the City to have additional codes. The State code
takes priority over City code.
Since the Finance Department has become the issuing office of Business Licenses, the code
language needs to be updated to reflect this change. Currently the code refers to the City Clerk.
When the Finance Department absorbs these responsibilities, the code will need to refer to the
Finance Director.
RECOMMENDATION
The Council is being asked to approve the attached Ordinance, approve the repeal of TMC
5.16, TMC 5.40 and approve the language updates for the issuing department.
The Council is being asked to consider this issue at the November 2, 2010 Finance Safety
Committee meeting, November 8, 2010 Committee of the Whole Meeting and the November 15,
2010 Regular Meeting.
ATTACHMENTS
Draft Ordinance
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DRAFT
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING TUKWILA MUNICIPAL
CODE CHAPTER 5.04 'BUSINESS LICENSES AND REGULATIONS"
TO UPDATE THE ISSUING DEPARTMENT AND TO CLARIFY
PROCEDURES FOR DENIAL OR REVOCATION; REPEALING
VARIOUS ORDINANCES AS CODIFIED AT TUKWILA MUNICIPAL
CODE CHAPTERS 5.04, BUSINESS LICENSE AND REGULATIONS,
5.16, "CARD AND POOL ROOMS," AND 5.40, "MASSAGE
ESTABLISHMENTS PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the current Business Licenses and Regulations section of the Tukwila
Municipal Code were last updated in 1996, by Ordinance No. 1788 and operational
changes require an update to the regulations; and
WHEREAS, Tukwila Municipal Code Chapter 516 is no longer applicable because
State Statute no longer has provisions regarding pool /billiard tables to be segregated
from minors, and
WHEREAS, per RCW 35.21.692, State licensed massage practitioners may not be
subject to additional licensing requirements; therefore Tukwila Municipal Code
Chapter 5 40 is no longer valid, and
WHEREAS, the Finance Department has become the issuing office for Business
Licenses within the City and housekeeping amendments are required to reflect this
change in City operations, and
WHEREAS, the City Council has considered the provisions of Tukwila Municipal
Code Chapter 5 04 and desires to clarify the procedures for denial or revocation of
business licenses; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. TMC Chapter 5.04 is amended to read as follows:
TMC Section 5.04.010 "Definitions." For the purpose of this chapter, the following
definitions shall apply-
1. 'Business," means any operation performed by any person which involves the
manufacturing or processing of materials of any type, the sale of goods, wares or
merchandise, the rendition of services or the repair of goods, wares or merchandise to
the general public or a portion thereof for any consideration at each established place of
business, store, office, shop or yard within the City limits.
2. "Department," means Finance Department.
3. "Director." means the Finance Director or his or her designee.
4. "License or licensee," as used generally in this chapter, means and includes
respectively the words "permit" or "permittee" or the holder for any use or period of
time of any similar privilege, wherever relevant to any provision of this chapter or
other law or ordinance.
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5. "Nonprofit organization" includes individual oerson(s), Partnerships, joint
ventures, societies, associations, churches, clubs. trustees, trusts or corporations; or any
officers, agents, employees, factors or any kind of personal representatives of any
thereof, in any capacity, acting either for himself or any other person under either
personal appointment or pursuant to law who qualifies under definition of and
certification by the Internal Revenue Service as nonprofit.
6. "Person," means any individual, receiver, agent, trustee in bankruptcy, trust,
estate, firm, co- partnership, joint venture, company, joint stock company, business trust,
corporation, society, or group of individuals acting as a unit, whether mutual,
cooperative, fraternal, nonprofit or otherwise.
7 "Person engaged in business" means the owner or one primarily beneficially
interested in lawful business for profit and not employees.
8 "Home occupation" means any business conducted in a residence within the
corporate city limits of Tukwila, such business being subject to the requirements set
forth in TMC 18.06.430.
TMC Section 5.04.012 "Purpose." The purpose of this chapter is to regulate and
insure the legal conduct of businesses, assist in the effective administration of health,
fire, building, zoning and other codes of the City, to impose fees for revenue purposes,
and to provide a means for obtaining public information and compiling statistical
information on existing and new businesses in the City.
TMC Section 5.04.015 "Business License Required." No person or persons shall
conduct, maintain, operate, or engage in any business within the City without first
applying for and obtaining a business license and paving the fee(s) as prescribed herein
unless the business is exempt. The exemption is only from the need to obtain a business
license and shall not be construed as relief from compliance with other requirements of
the Tukwila Municipal Code.
TMC Section 5.04.020 "Application and fees required."
A. Any person desiring to establish or conduct any business enterprise or
undertaking within the corporate limits of the City shall first apply to the City Clcrk
Finance Department for a license to conduct such business. The application shall be
upon a form furnished by the Finance Department on which the applicant shall state the
company name and address; the nature of the business activity or activities in which he
desires to engage; the place where the business will be conducted, the number of
employees, whether full or part -time, on the payroll as of January 1, or, if a new
business, the number to be employed on the opening date; and other information
pertaining to the business as required by the City
B. The application must be accompanied by a check, cash or money order for the
amount of the license fee. All fees will be based on the number of employees, whether
full or part -time, as follows:
0 to 10 $100.00
11 to 20 $150.00
21 to 50 $300.00
51 to 100 $400.00
101 and up $600.00
Home Occupation
(pursuant to TMC 5 04.010) $50.00
TMC Section 5.04.030 "Renewal." Upon review and approval of the application, the
City Clcrk Finance Director will issue a license to the applicant. The license shall grant
to the applicant the privilege to conduct such business at a designated location in the
City Such license may be renewed by payment of the year's fee prior to January 1.
TMC Section 5.04.040 "Prorating fee." The license fee set forth in this chapter shall
be for the calendar year, and each person engaged in business must pay the full license
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fee either for the current year or portion thereof during which year or portion thereof he
engages in business.
TMC Section 5.04.050 "Fee for Late Acquisition or Renewal." The license fee shall
be increased for failure to acquire a license within 30 days of commencing business
operations or for failure to renew said license within 30 days of expiration date in the
following amounts: First 30 days, $20 00; each 30 days thereafter, $20 00
TMC Section 5.04.060 "Transferability The license granted in pursuance hereof
shall be personal to the licensee and it shall not be assignable or transferable to any
other person.
TMC Section 5.04.070 "Change in Nature of Business." The license granted in
pursuance hereof shall be used to conduct the business or type of business at the
designated address for which such license is issued. Any change in the nature of the
business shall necessitate a renewed application to the Finance Department.
TMC Section 5.04.080 "Required Display." It is unlawful for any person to engage
in or carry on any business activity in the City without first procuring a license as
provided in this chapter The license shall thereafter be prominently displayed in the
place of business of the applicant.
TMC Section 5.04.090 "Exemption." Nothing in this chapter shall be construed to
require a license for any farmer, gardener, or other person to sell, deliver or peddle any
fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats or any farm produce or
edibles raised, caught, produced or manufactured by such person in any place within
the State.
TMC Section 5.04.100 "Failure to Pay Fee." If any person engaged in business fails
or refuses to pay the license fee for any year as herein provided, they shall not be
granted a license for the current year until such delinquent license fees as set forth in
TMC 5.04.050 have been paid, in addition to the current years' required fee. Such fees
may be collected by the City by proper legal action brought for that purpose if any
person engaged in business fails or refuses to pay the license fee. This remedy is
cumulative and not exclusive.
TMC Section 5.04.105 "Issuance of Business License."
A. A business license will only be issued provided the building, structure,
operation or location of the business for which the license is sought complies with the
requirements or standards of the Tukwila Municipal Code.
B. In any case where an applicant seeks a business license for a business to be
located in a building or structure for which a building or land use permit is required to
operate the business as proposed, whether as a newly constructed building or structure
or a remodeled building or structure. the permit process, including final
inspections /issuance of occupancy permits, shall be completed prior to issuance of a
business license.
C. In any case where an applicant seeks a business license for a business to be
located in a building or structure for which no building or land use permit is required
to operate the business as proposed, the building department may require the business
premises to be inspected for compliance with life and safety codes. If the inspection
reveals outstanding code violations. the business license will not be issued until all Life
and safety code violations are resolved.
TMC Section 5.04.110 "Denial Revocation."
A. The Finance Director may deny any business license application pursuant to
5.04.105.
B The Finance Director City Clerk may deny or revoke any license under this
chapter for up to a period of one ygar where one or more of the following conditions
exist:
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1. The licensee is in default of anv fee, charges or amounts due and payable to
the City of Tukwila, as outlined in the Tukwila Municipal Code or City policy.
2. The license was procured by fraud or by a false or misleading representation
of fact in the application, or in any report or record required to be filed with the City
Clerk Finance Department;
3. The building, structure, equipment, operation or location of the business for
which the license was issued does not comply with the requirements or standards of the
Tukwila Municipal Code;
4. The license holder, his or her employee, agent, partner, director, officer or
manager has knowingly violated any provisions of any chapter of the Tukwila
Municipal Code, or has knowingly permitted, failed to prevent, or has otherwise
allowed a violation of any of the provisions of any chapter of the Tukwila Municipal
Code to occur on his or her business premises.
C. Upon determination that grounds for denial, suspension or revocation of a
license exist, the City Clerk Finance Director shall send the license holder a Notice of
Denial, Suspension or Revocation. Grounds for denial, suspension or revocation
include, repetition of a violation of any provision of City policies or the Tukwila
Municipal Code that has been accompanied by a warning notice of such violation or
previous notice of the violation. The Notice of Denial, Suspension or Revocation shall
set forth the grounds for and terms of the denial, suspension or revocation and a
statement advising that the person may appeal from the Notice of Denial, Suspension or
Revocation to the Hearing Officer, provided that the appeal is made in writing and filed
with the City Clerk Finance Director within 10 days from the date of receipt of the
Notice of Denial, Suspension or Revocation, and that failure to so appeal shall constitute
a waiver of all rights to any additional administrative hearing or determination on the
matter. Upon issuance of such Notice, the license is suspended or revoked and is no
longer valid and current, unless appealed as provided in this chapter, in which case the
effect of the suspension or the revocation is stayed pending the outcome of the appeal.
D Receipt of the Notice of Denial, Suspension or Revocation. The Notice of Denial,
Suspension or Revocation shall be served upon the license holder either personally or
by mailing a copy of such Notice by certified mail, postage prepaid, return receipt
requested to such license holder to his or her last known address as provided in the
license application. Alternatively, the Notice may be posted upon the premises where
such license holder conducts his or her business, which is the subject of the denied or
revoked license.
TMC Section 5.04.112 "Appeal of Notice of Denial, Suspension or Revocation."
A. Appeals from a Notice of Denial, Suspension or Revocation under this chapter
shall be conducted in the same manner as appeals from a "Notice and Order" under
Tukwila Municipal Code Chapter 8.45
B. The appeal shall be filed with the City Clerk's Finance Department's Office
along with an appeal fee of $250.00
TMC Section 5.04.114 "Violations." Per TMC Section 8.45.030.C, it is unlawful for
anv person or persons to engage in or conduct business within the City of Tukwila
without first obtaining appropriate business licensing.
A. A businesses' first violation of this chapter shall result in a license suspension for
ninety (90) days.
B. A businesses' second violation of this chapter shall result in a licence suspension
for one hundred eighty (180) days.
C. A businemces' third violation of this chapter shall result in the revocation of the
licence for one year.
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TMC Section 5.04.115 "Penalties." Any violation of this chapter, or failure to
comply with any of the requirements of this chapter, shall be subject to the penalties
prescribed in Chapter 8 45 of the Tukwila Municipal Code "Enforcement and shall be
imposed pursuant to the procedures and conditions set forth in that chapter
TMC Section 5.04.116 "Effect of Denial or Revocation." No person or business may
reapply for a business license merely by renaming the business. The denial or
revocation of a license applies to any business entity, regardless of its name, that is
operating under the same ownership and /or management and engages in substantially
the same type of business enterprise as that of a business that has been previously
denied a license or has had its license revoked under this chapter within a year of such
application for a license.
TMC Section 5.04.120 "Regulations Adoption and Publication Failure to Comply
The City Clerk Finance Director shall have the power and it shall be her their duty
from time to time to adopt, publish and enforce rules and regulations not inconsistent
with this chapter or with the law, for the purpose of carrying out the provisions hereof,
and it is unlawful for any person to violate or fail to comply with any such rule or
regulation.
Section 2. Repealer for Tukwila Municipal Code 5.04 "Business Licenses
Generally." Ordinance Nos. 1788 §1 (part), 1838 §3, 2120 §1, 2179 §2, and 2299 §1, are
hereby repealed.
Section 3. Repealer for Tukwila Municipal Code 5.16 "Card and Pool Rooms."
Ordinance Nos. 204, 416 (part), and 374 (part) are hereby repealed.
Section 4. Repealer for Tukwila Municipal Code 5.40 "Massage Establishments."
Ordinance No. 1534 §2 (part) is hereby repealed.
Section 5. 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 6. 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 2010.
ATTEST /AUTHENTICATED
Christy O'Flaherty, City Clerk Jim Haggerton, Mayor
Filed with the City Clerk:
APPROVED AS TO FORM BY. Passed by the City Council.
Published.
Effective Date:
Shelley M. Kerslake, City Attorney Ordinance Number
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(4 I LA" 4s City of Tukwila q
J
a L o Finance and Safety Committee
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
November 2, 2010 5:00 p.m., Conference Room #3
PRESENT
Councilmembers: De' Sean Quinn, Chair; Allan Ekberg and Kathy Hougardy
Staff: Dave Haynes, Don Lincoln, Dennis McOmber, Jack Pace, Melissa Hart, Peggy McCarthy,
Jennifer Ferrer- Santalnes, Mary Hulvey, Gail Labanara, Steve Lancaster and Kimberly Matej
Guests: Chuck Parrish
CALL TO ORDER: Chair Quinn called the meeting to order at 5:00 p.m.
L PRESENTATIONS
No presentations.
II. BUSINESS AGENDA
A. 2010 Justice Assistance Grant
As an information only item, staff notified the Committee of a grant recently awarded to the Police
Department from the Bureau of Justice Assistance in the amount of $26,766. This funding will be utilized
for outreach and relationship building between the Police Department and refugee populations within the
Tukwila community. Collaborative efforts will focus on the Somali population, but will not exclude
interactions with other refugee groups. INFORMATION ONLY.
B. Secure Our Schools Grant
Staff is seeking Council approval to accept grant funding in the amount of $76,437 from the U.S.
Department of Justice's Community Oriented Policing Services Secure Our School (SOS) grant program.
In a cooperative effort between the Tukwila School District and the Police Department, this funding will
be used to enhance school safety equipment, safety efforts and to assist in preventing school violence. The
grant funds will be used in the efforts described for implementation at Showalter Middle School. Funds
will also be used for lockdown access control.
The School District will provide a 50% match of grant funds to implement the SOS program in Showalter
Middle School. There is no matching fund requirement on behalf of the City. The Police Department will
meet reporting requirements and will oversee fiscal management related to the U.S. Department of
Justice. The School District will invoice the Police Department as appropriate for reimbursement of
expenses relative to and not to exceed the awarded grant funding. UNANIMOUS APPROVAL.
FORWARD TO NOVEMBER 8 COW FOR DISCUSSION.
C. Ordinance: Chances to Business License TMC Chanter 5
Staff is seeking Council approval of a draft ordinance which will repeal Sections 5.16 and 5.40 of the
Tukwila Municipal Code (TMC) regarding business licenses for Card and Pool Rooms and Massage
Establishments. Minor housekeeping items address modification for change or elimination as appropriate.
Additionally, Section 5.04.105 has been added to address the issuance of business licenses and Section
5.04.110 allows for revocation or denial of a business license based on non payment of City- related fees.
As of mid November, the business license issuance function will transition from the City Clerk's Office
to the Finance Department. Changes to the draft ordinance modify the previous designation of processes
from the City Clerk's Office to the Finance Deaprtment.
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Finance Safety Committee Minutes November 2. 2010 Page 2
The suggested elimination of reference to Card and Pool Rooms and Massage Establishments is a result
of recognition of antiquated language in the TMC which is no longer supported by State code and /or is
limited by the Revised Code of Washington.
New additions to the ordinance allow for enforceable action to deny or revoke a business license upon, or
as a result of, non payment of fees or taxes due to the City under the TMC or City Policy. A second
addition, implements in writing an existing internal process for departmental review of business
license applications. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 8 COW FOR
DISCUSSION.
D. City Council Preliminary 2011 -12 Budget Review
The Committee reviewed the 2011 -12 Biennial Budget pages as listed below in preparation of full
Council discussion and review of the budget.
Peggy McCarthy distributed replacement copies for the following budget sections:
Contingency Fund (yellow sheet). Note that this page was not included in the original budget
document. Insert behind Special Revenue 100's tab, as OF -10.
Transfer -Out Detail for above section. Note sheet is white.
Fire Improvement Fund (yellow sheet). Note that this page was not included in the original
budget document. Insert behind General Capital 300's tab, as last page.
Replacement/new sheets will be given to the remaining four Councilmembers not in the Committee
meeting. Due to page numbering changes, it is recommend you do not dispose of the original white
sheets, please maintain them for future reference.
SECTION Budget Pages. CIP Pages
Finance GF -37 to GF -41
Insurance Fund OF -43
Contingency Fund Page TBD
Contributions/Fund Balance GF -173
Police GF -91 to GF -117
Fire Improvement Fund OF -26 (yellow sheet)
Attachment A CIP VII -IX
Attachment B CIP XI
Attachment C CIP XII -XV
III. MISCELLANEOUS
Meeting adjourned at 6:12 p.m.
Next meeting: Tuesday, November 16, 2010 5:00 p.m. Conf. Room #3
4 1' Committee Chair Approval
Minutes by KAM.
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