HomeMy WebLinkAboutFS 2014-06-17 COMPLETE AGENDA PACKET
City of Tukwila
Distribution :
V. Seal P. McCarthy
J. Duffie C. O’Flaherty
K. Hougardy S. Kerslake
D. Quinn L. Humphrey
D. Robertson E. Drever
Mayor Haggerton J. Tr antina
Verna Seal, Chair
D. Cline V. Carlsen
Joe Duffie
Kathy Hougardy
AGENDA
T , J 17 , 2014 – 5:30
U ESDAY UNE PM
H C R
AZELNUT ONFERENCE OOM
(formerly known as CR #3) at east entrance of City Hal l
Item Recommended Action Page
1. PRESENTATION(S)
2
. BUSINESS AGENDA
a. Committee approval . Pg.1
a. Purchase of firearms trailer utili zing grant funds .
b. Forward to 6/ 23 C.O.W. Pg. 5
b. A resolution regarding the “Tukwila, City of Opportunity
and 7 /7 Regular Mtg .
Scholarship” program .
c. Information only . Pg. 15
c. 201 4 1st Quarter investment report .
d. Information only . Pg. 21
d. 2014 1st Quarter miscellaneous revenue report .
e. Forward to 6/ 23 C.O.W. Pg. 29
e. Amendments to the Ethics Code.
and 7 /7 Regular Mtg .
3. ANNOUNCEMENTS
4. MISCELLANEOUS
Next Scheduled Meeting:
The City of Tukwila strives to acc ommodate individuals with disabilities.
Please contact the City Clerk’s Office at 206 - 433 - 1800 ( TukwilaCityClerk@TukwilaWA.gov ) for assistance.
TO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL U��U����������U�
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Mayor Haggerton
Finance & Safety
FROM: Chief Mike Villa
BY: Commander Eric Dre
DATE: May 22nd, 2014
SUBJECT: Purchase of a Firearms Trailer Utilizing Federal Grant Funds
ISSUE
Purchase of Firearms Training & Equipment Trailer for the purpose of transporting
equipment and supplies to Police Department firearm training sites.
BACKGROUND
As required by US Supreme Court Decisions and as identified as training needs for the City
of Tukwila Police Department, the Firearms Unit conducts quarterly training sessions for
the police Department. Each session requires ammunition, targets, target stands, cleaning
supplies, repair equipment, tables, air compressor, portable generator, and other bulky
equipment to be transported to the location of the firearms training.
The transportation of this equipment is rorreoHvbaudled by loading and unloading into
multiple vehicles to handle the task.
DISCUSSION
The e ipcucottraOerwou|dheutlioedhntbpPirearoznTraioingDoitosapdcnarysource
but could also be used by SWAT and the Civil Disturbance Unit during their specialized
training dates.
The purchase of an equipment trailer is a cost effective way to secure and transport
supplies and equipment to and from the range. Equipment could be stored in the trailer,
saving on labor time of load and unload during each training session. Having this resource
will help streamline the training day by having all that is needed for the quarterly session
onboard. This provides a pool of resources that addresses storage, eliminates duplication
and reduces staff time by eliminating many of the obstacles associated with providing
firearms training.
FINANCIAL IMPACT
This project was ootior\uded in the 2013'2014 Budget. As an alternative we propose
utilizing existing funds from the Police Department Fleet Services and funds provided
through the Edward Byrne Memorial Justice Assistance Grant (JAG) Program. The
estimated cost is $9600.00 (actual quote is $9490.60 FOB Olympia + $110 for additional
costs).
INFORMATIONAL MEMO
Page 2
Funds would come from the following GL account lines:
$8000.00 - Grant #2013-DJ-BX-0715 Edward Byrne Memorial Justice Assistance
Grant (JAG) Program.
$1600.00 - Remaining Police Department Fleet Services Budget Line (This line is
currently under-budget and can easily absorb the expense.)
Trailers have a lengthy life span. However, the need to replace the trailer will eventually
come. The Police Department will be adding the trailer to the department's fleet and
placed on the replacement schedule.
With an anticipated 15 year cycle, and an estimated $10,000.00 replacement cost, a
monthly replacement saving plan would run approximately $55.00 per month. (The
savings in labor-hours of the load/unload over 15 years will more than compensate
for the replacement.)
RECOMMENDATION
Tukwila Municipal Code 3.3ZO40 states "Any Onb capital equipment or fixed asset
item, including components or services of items, shall be approved by the Mayor and three
affirmative votes of the respective Council committee assigned to the requesting department.
'Fixed asset' items are d8fiDed8J costing 8tleast $5,000 and having a useful life of at least two
years."
The Police Department recommends the Finance and Safety committee authorize the
Mayor to approve the purchase of a PD firearms equipment trailer not to exceed $9,600.00
using existing funds from the following:
$8000.00 - Grant #2013-DJ-BX-0715 Edward Byrne Memorial Justice Assistance
Grant (JAG) Program.
$1600.00 -Police Department Fleet Services Budget Line.
ATTACHMENTS
Trailer Quote Document
C:\Users\106\Desktop\Fireanns Trailer Finance and Safetydoc
2
www.trailerbossonline.com
360-923-2135
360-923-1201 fax
olympia@trailerbassonline,com
7821 Martin Way E Olympia, WA 98516
WHITE
8 5X16/7K
SERIAL NO.
TBD
STOCK
N
PURCHASER'S
NAME
DATE 3/26/2014
CITY OF TUKWILA
PHYSICAL
ADDRES: 14000 INTERURBAN AVE SOUTH
TUKWILA WA
MAILING
ADDRESS
RES. PHONE
206.433.1866 JEFF
98168
BUSINESS PHONE
206.433 1814 GREG
QUOTE
SELLING PRICE
8731.00
ELEC #1, REAR RAMP, RV DOOR, WHITE
CEILING, ROOF VENT, (6) 12V INTERIOR LIGHTS
XTRA PLUS PACKAGE, DROPPED AXLES 0.00
Trailer Boss
14' AWNING, 7' INTERIOR HEIGHT, RECESSED
BATTERY BOX & FREIGHT (FOB OLYMPA)
7821 Martin Way E
Olympia, WA 98516
Phone: 360.923.2135
Fax: 360.923.1201
SUBTOTAL
8,70% TAX
DESCRIPTION OF TRADE-IN
YEAR ID NO.
0
MODEL
LIEN HOLDER ADDRESS
0
GOOD UNTIL
NET VERIFIED
DOC. FEE
TRIP PERMIT
RTA TAX
LICENSE FEE
TOTAL CASH PRICE DELIVERED
CASH DEPOSIT
CASH DOWN
8731.00
759.60
0.00
0.00
9490.60
.00 9490 60
TAB NO
IC. NO.
Piirchaser assumes responsibility for any ditTerence in payoff
in excess of amount shown on this order, and will pay such
difference in case on demand. If not pind, purchase
authorized dealer, at dealer's option is repossess the trailer sold
PAY OFF TRADE
DEPOSIT ON TRAILER NO.
AMOUNT OF DEPOSIT
TRAILER TO BE PICKED UP BY
0.00
9490.60
DA3 E
COMMENTS/OPTION LIST
Delivered Yes
Address
No
nstate Outstate
Purchaser agrees that ( I I his order includes all the terms and conditions on both he face and the reverse side of, together with any attaclunents herein referred to
(2) This order cancels and sopercedes any prior agreement and as of the date herein comprises the complete and exclusive slate nest of the tenns of this agreement
relating to the subject matters covered hereby. (3)This order shall riot become binding until accepted by Dealer or his authorized representative and in the event of a
purchase time sale. Dealer shall not be obligated to sell until approval of the terms hereof is given by a Bank, Financial Institution or other source of funding willing
o a time sales agreement between the parties hereto based on such terms (4) Purchaser by execution of this order certifies that he or she i J f legal age and
acknowledges that he or she has read its terms, conditions and attachments and has received a true copy of this order.
Accepted by
3
4
TO:
City of «� ��x xunmwxxa
Jim Haggerton, Mayor
INFORMATIONAL U��U�/�������U�
nn�n-»�/�nu�o�mn uv�'u���u� o�n��u�xv�"nn�mu�����u�n
Mayor Haggerton
Finance & Safety Committee
FROM: David Cline, City Administrator
DATE: June 4, 2014
SUBJECT: Tukwila City of Opportunity Scholarship
ANNUAL REPORT
The City received seven applications for the City of Opportunity Scholarship: one application
from Aviation High School in the High line School District and six applications from Foster High
School in the Tukwila School District. All applications were forwarded to the selection
committee members for review.
There was $4'000 available for scholarship awards and two $2'000 scholarships were awarded.
ISSUE
After going through the scholarship process in 2014 Administration is recommending revisions
to the program to include:
Defining Substantial Financial Need;
• Make-up and Size of the Selection Committee;
• Award Amounts; and
• Eligibility of Immediate Family Members of City Employees and Elected Officials.
DISCUSSION
Defining Substantial Financial Need: The resolution that adopted the City of Opportunity
Scholarship indicated that financial need would be demonstrated by the information provided on
the FAFSA Student Aid Report. Unfortunately, the Student Aid Report only provides the amount
of Expected F8milv[Jn/ribUbOnbUtdOeGn[tprOvideGOOU@|f@Dli|yinCO[D8O[thefiD@DCia}
information provided in completion of the FAFSA form used to determine need. Eligibility for the
Washington State Need Grant is determined by the using the State Median Family Income chart
and to be eligible a student's family income cannot exceed 70 percent of the State's median
income.
It is recommended that the scholarship application be modified to include a financial section that
wides-rpcge,„„L flELthe annual family income for the previous year and that eligibility is based on
a family income that does not exceed 70 percent of the State' median
income.
Based upon the Committee's recuest br further information on this issup,,::aftached is a
comigarison of the median incorrie information utilized hy King CountLand the State
mandatory amount of community service hours as agradgation requirement„, if Council esires
INFORMATIONAL MEMO
Page 2
to modify
Members of the Selection Committee: It is recommended that we modify the make-up of the
selection committee to include the Mayor and/or his designee, the Council President and/or a
City Council Representative, up to two appointed City employees and School District
representative(s). The number of members on the selection committee will not exceed seven
people in any given year.
Award Amounts: It is recommended that the amount of the annual scholarship fund be
increased from $4'00Ok]$10'000 with the minimum award amount being %1.0OU and the
maximum award amount being $5.000. This will allow the potential for additional recipients and
more substantial scholarship awards.
Eliqibiitv of Immediate Family Members of City Employees and Elected Officials: It is a common
practice for organizations that issue monetary awards to exclude employees and other
individuals who are affiliated with the organization, as well as their family members, from
eligibility to avoid a potential conflict of interest or the appearance of impropriety. After
consulting with the City Attorney's office it is recommended that we adopt this exclusion. In the
alternative, the Council can opt to allow immediate family members of City employees and
elected offioi@|S, which meet all other eligibility requirements, to apply for the scholarship. T 'rase
two Options are beinciforward0J12,The_cimmittee of the ,ArIgte,JorLconsiderattion,.
FINANCIAL IMPACT
Increasing the amount of the scholarship fund from $4,000 to $10,000 will mean an additional
$6,000 per year from the general fund.
RECOMMENDATION
The Council is being asked to approve a resolution amending the Tukwila City of Opportunity
Scholarship requirements at the June 23, 2014 Committee of the Whole meeting and the
subsequent July 7, 2014 Regular Meeting.
ATTACHMENTS
Median Income Comparison Table
Draft Resolution
Finance & Safety Committee Minutes from June 3, 2014
6
Median Income
January 1, 2014 through December 31, 2014
Number in Fa
ily
State
Monthly
King
County
Monthly
70%
State
Monthly
70% King
County
Monthly
State
Annually
County
Annually
70%
State
Annually
70% King
County
Annually
1
3,643
5,141
2,550
3,599
43,716
61,700,
30,601
43,190
2
4,765
5,883
3,336
4,118
57,180
70,600
40,026
49,420
5,886
6,616
4,120
4,631
70,632
79,400
49,442
55,580
7,007
7,350
4,905
5,145
84,084
88,200
58,859
61,740
5
8,128
7,941
5,690
5,559
97,536
95,300
68,275
66,710
9,249
8,525
6,474
5,968
110,988
102,300
77,692
71,610
9,459
9,116
6,621
6.381
113,508
109,400
79,456
76,580
9,669
9,700
6,768
6.790
116,028
116,400
81,220
81,480
9,879
6,915
118,548
82,984
10
10,089
7,062
121,068
84,748
Each additional
member
210
State Median Income Chart from www.dshs.wa.gov
King County Income Chart from www.kingcounty.gov
8
DRAFT
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF TUKWILA, WASHINGTON, AMENDING THE
" TUKWILA, CITY OF OPPORTUNITY SCHOLARSHIP"
PROGRAM TO INCREASE THE FUNDING LEVEL
AND CLARIFY AND REFINE PROCEDURES; AND
REPEALING RESOLUTION NO. 1817.
WHEREAS, the City of Tukwila has a scholarship program for high school students
living in Tukwila; and
WHEREAS, the purpose of establishing the scholarship program is to provide
financial assistance and opportunity to deserving students to continue their education
beyond high school; and
WHEREAS, the scholarship grant shall be known and cited as the "Tukwila, City of
Opportunity Scholarship;" and
WHEREAS, following the initial implementation and awarding of scholarship funds,
the City wishes to increase the funding level for the program and clarify and refine
procedures;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Purpose. The purpose of establishing the scholarship program is to
provide financial assistance and opportunity to deserving students to continue their
education beyond high school.
Section 2. Scholarship Eligibility Requirements. Recipients of the scholarship
program shall meet the following qualifications:
• Must be a resident of the City of Tukwila. Proof of residency is required at the
time of application.
• Must be equivalent to a senior in high school.
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Page 1 of 3
9
• Must demonstrate a substantial financial need as indicated on the FAFSA
Student Aid Report. Substantial financial need is defined as a household income
of less than 70% of the State Median Income.
• Must have applied to an undergraduate program at a community college, trade
school or university.
• Must demonstrate leadership qualities as evidenced by involvement in extra-
curricular activities.
• Must have a cumulative grade point average (GPA) of 2.75 or higher.
• Must have completed a minimum of 15 hours of community service.
• May not be an employee or immediate family member of an employee or elected
official of the City of Tukwila. For purposes of the scholarship program,
"immediate family member" includes dependents, anyone residing in the person's
household, and anyone within three generations by blood or marriage of the
person or the person's spouse, e.g., within three degrees of relationship by blood
marriage.
Section 3. Funding. A sum of $4,08910,000 per calendar year shall be
appropriated and reflected in the City of Tukwila budget. Scholarships will be awarded
in increments of not less than $1,000 nor greater than $4;8005,000.
Section 4. Scholarship Selection Committee. A Scholarship Selection
Committee shall be created and shall include the Mayor and /or his or her designee, the
City Council President and /or a City Council representative, and up to two City staff
appointees and a- School District d ig-neerepresentative(s) who can fairly evaluate the
level of academic and extracurricular activities represented in the scholarship
applications.
Section 5. Roles and Authority for the Scholarship Fund.
A. City staff shall administer the scholarship fund as directed by this resolution,
and it shall be known and cited as the "Tukwila, City of Opportunity Scholarship."
B. The Scholarship Selection Committee shall review the program annually and
submit a report to Council that summarizes by school district: the applications, available
funds, the scholarships awarded, the number of applications that did not result in
scholarships, and any recommendations for revisions to the program.
C. The Council shall receive the report and request revisions to the program as
needed.
Section 6. Application Review Process. The deadline for applications to be
submitted is March 31 of each year. All applications will be reviewed by City staff to
determine that the eligibility requirements have been met. All applications that meet the
eligibility requirements will be reviewed by the Scholarship Selection Committee, which
will present a recommendation to the City Council for approval of up to four scholarship
awards. Scholarship recipients will be notified by April 30 each year.
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10
Page 2 of 3
Section 7. Repealer. Resolution No. 1817 is hereby repealed.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of , 2014.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk De'Sean Quinn, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Shelley M. Kerslake, City Attorney
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Page 3 of 3
11
12
City of Tukwila
Finance and Safety Committee
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
June 3, 2014 — 5:30 p.m.; Hazelnut Conference Room
PRESENT
Councilmembers: Verna Seal, Chair; Joe Duffie, Kathy Hougardy
Staff: David Cline, Peggy McCarthy, Don Tomaso, Laurel Humphrey
CALL TO ORDER: Committee Chair Seal called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
No presentations.
II. BUSINESS AGENDA
A. Fireworks Permit for July 4 Event at Start ire Sports Complex
Staff is seeking Council approval of a Fireworks Permit Application submitted by Western
Display Fireworks Ltd. for the fireworks display at the City's annual 4th of July Celebration at
Starke Sports Complex. The application has been approved by the Fire Marshal and found to
be in compliance with standards and regulations, and this vendor and launch location have
been working well. UNANIMOUS APPROVAL. FORWARD TO JUNE 16, 2014 REGULAR
CONSENT AGENDA.
B. Resolution and Annual Report: City of Opportunity Scholarship
Staff is seeking Council approval of a resolution that would amend the requirements of the
Tukwila City of Opportunity Scholarship as a result of lessons learned from the inaugural 2014
process. Committee discussions on the four areas of modification recommended by staff are
summarized as follows:
• Define "substantial financial need" as family income that does not exceed 70 percent of
the state's median income. The Committee requested more information regarding median
income levels for the city, county and state. While discussing a balance of need versus
merit-based award criteria, Committee members expressed an interest in an expanded
community service component to the application.
• Modify the selection committee makeup to include the option of a representative from the
City Council in addition to or instead of the Council President, and the option of additional
City Staff and School District representatives, not to exceed seven total Committee
members per year. The Committee agreed with this modification.
• Increase the total amount of the annual scholarship fund to $10,000, allowing for the
potential of additional recipients and/or more substantial awards. The Committee agreed
with this modification.
• Change eligibility standards to exclude City employees and elected officials in keeping
with common practice and on the advice of the City Attorney. The Committee did not
agree to this modification but would like to forward both options to the Committee of the
Whole for discussion. Committee Chair Seal suggested that if employee relatives are
included, their names be blacked out during the selection committee review process.
RETURN TO COMMITTEE FOR FURTHER DISCUSSION.
13
14
TO:
City of Tukwila
Jim Haggerton, Mayo;
INFORMATIONAL U��U����������U�
nn�n�����n�u��n mw°�n�m���~ wwn�~nmw����m~mn�����n�n
Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Finance Director
BY: Vicky Carlsem, Deputy Finance Director
DATE: June 11, 2014
SUBJECT: First Quarter 2014 Cash & Investment Report
ISSUE
The first quarter Investment Report is included with this memorandum and is discussed below.
BACKGROUND
City funds are invested to earn a reasonable return while preserving principal and allowing
sufficient liquidity to meet the City's operating needs. To achieve these objectives investments
are diversified by type, by financial institution, and by maturities in compliance with the City
Investment Policy.
DISCUSSION
Portfolio Components
At March 31, 2014, the portfolio totaled $44.7 million comprised of $37.8 million in cash and
cash equivalents and $6.9 in longer term investments. The portfolio balance decreased by $1 .8
million from December 31, 2013 balance of $46.5 million. A major reason for the decrease in
funds is because property tax collections are primarily received in 2nd and 4th quarters while
general fund expenditures are spread fairly evenly throughout the year.
Portfolio Performance
The portfolio weighted average yield at year end was .41°/0. Considering the portfolio's
weighted average maturity was 0.8 years, and the yield on the cash & cash equivalent accounts
was .06q6' the portfolio yield of 0.41% is still quite favorable. The yield has been sustained by
the 4.22% average yield on the municipal bond investments, the .35% yield on the certificate of
deposits, and the .45% earnings credit on the US Bank depository account.
Investment income through 1s` quarter 2014 for cash equivalents and certificates of deposits is
$32,796 plus $37'000 of accrued municipal bond interest for a total of $70.396 against a
prorated budget of $65,539.
Not included in the portfolio is interest earned from the operating and capital loans to the MPD.
The operating loan is being repaid on a monthly basis and will be paid in full by May 2023.
Interest earned on the loan for the first quarter of 2014 is $5,167. The capital loan is being
repaid semi-annually and will be paid in full by December 2022. Accrued interest for the first
quarter of 2014 is $3,942. Attached to the investment report are amortization schedules for
both loans to the MPD.
16
INFORMATIONAL MEMO
Page 2
Policy Compliance and Liquidity Analysis
As of the end of the 1st quarter, the portfolio profile is well within the range of all the investment
policy parameters. There is currently a healthy mix of investments with a range of maturity
dates. Current investments allow for adequate cash flow requirements.
Fund Cash & Investment Balances
The general fund balance shows a decrease of $1.0 million from December 31, 2013, primarily
due to the timing of property tax collections. However, both the general fund and contingency
funds show significant increases from March 2013 to March 2014. This is due to the sale of LID
bonds that occurred in November 2013. Other fund balances were fairly stable with minimal
changes.
Investment Environment
Interest rates continue to remain low and are expected to remain low through 2015. At this
point, the Federal Reserve is still tying short-term interest rates to the unemployment rate and
intends to maintain a zero-interest-rate policy until the economy strengthens. The portfolio will
be managed to take advantage of investment opportunities as they arise.
RECOMMENDATION
Presentation is for information only.
ATTACHMENTS
Cash and Investment Report
Policy Compliance & Liquidity Analysis
Cash and Investment Balances by Fund
Treasury Rates and Yield Curves
W:\1Users\Vicky\Investment Report\Info Memo Investment Report 2014 01.docx
CITY OF TUKWILA
CASH & INVESTMENT REPORT
March 31, 2014
(a) (c) (d)
Rating Purchase Maturity Term Par Book Yield to Annualized
Agency / Issuer Moodys Investment Type Date Date Yrs Value Balance Maturity Return
CASH & CASH EQUIVALENTS
US Bank Depository Various (b) $17,697,208 $17,697,208 (e) 12,888
.. 0.45%
Washington State Treasurer LGIP Investment Pool Various (b) 5,929,409 5,929,409 (f) 1,610
0.1138%
Columbia Bank Money market Various (b) 14,094,112 14,094,112 (f) 6,802
0.19%
Total Cash & Cash Equivalents
37,720,728 37,720,728 0.06% 21,299
INVESTMENTS
Certificates of Deposit
Sound Community Bank
Regal Bank
CERTIFICATES OF DEPOSIT -- TOTAL
Certificate of Deposit 3/4/2011 3/4/2017 6.0 3,000,000 3,127,788 1.40% 10,696
Certificate of Deposit 6/20/2012 12/20/2014 2.5 250,000 250,000 1.30% 801
5.7 3,250,000 3,377,788 0.35% 11,497
Taxable Municipal Bonds
City of Marysville, sinking Al LTGO Refunding 11/23/2010 12/1/2017 5.5 535,000 573,252 3.37% 19,319
2014-2017, ave 5.5 years
Washington State Convention Aa3 Lodging Tax Bonds 11/30/2010 7/1/2016 5.6 500,000 503,625 3.60% 18,130
Center Facility
UW Biomedical Center Aal Revenue Bonds 12/14/2010 7/1/2017 6.6 500,000 503,724 4.05% 20,401
UW Biomedical Center Aal Revenue Bonds 12/14/2010 7/1/2019 8.6 500,000 504,038 4.70% 23,690
Douglas County, ESD, sinking Aal UTGO 12/23/2010 12/1/2020 8.9 1,135,000 1,149,825 4.55% 52,317
2018-2020, ave 9 yrs
Port of Anacortes Al LTGO 12/17/2010 9/1/2020 9.7 340,000 330,855 5.00% 16,543
TOTAL MUNICIPAL BONDS
7.6 3,510,000 3,565,320 4.22% 150,400
Total Investments
6.7
6,760,000 6,943,108 2.33% 161,897
TOTAL CASH, CASH EQUIVALENTS & INVESTMENTS 1.0 $ 44,480,728 $ 44,663,836 I 0.41%
$ 183,196
(a) On calleable bonds, term is calculated to final maturity even though call date may occur first; term of liquid investments is
one day; on sinking fund bonds, average maturity is used to calculate term.
(b) No fixed maturity, funds are available within one day.
(c) Yield to Maturity represents average rate for the year for various investment vehicles.
(d) Annualized Return represents actual earnings for the fiscal year for bonds.
(e) Represents earning credit from US Bank. City earns interest up to the amount of fees. Municipal
(f) Represents rate in effect for period ending this report. Bonds
(g) Annualized Return represents actual earnings through current reporting period 8%
Current Portfolio Yield
Percent of Cash & Investment Portfolio
Money
Market
31%
Cash
40%
17
CITY OF TUKWILA
Policy Compliance & Liquidity Analysis
CASH & INVESTMENT REPORT
March 31, 2014
Liquidity Analysis & Maturity Diversification
Funds immediately available
Fixed Maturity Investments, maturing in:
0-90 days after Report Date
n1-1ao days after Report Date
Investments maturing in 1 year or less
Investments maturing in 1-3 years
Investments maturing in 3-5 years
Investments maturing in 5-7 years
Investments maturing in 7-10 years
Investments maturing in more than 1 year
and less than 10 years.
TOTALS
As of Repo Date
Available Available Available in
Portfolio Within 1 Year Within 5 5 - 10 Years
Amount Years
$ 37.720728 $ 37.720.728 $ 37,720,728
250,000
3,631,413
1,076,976
1,984,719
6,693,108
$ 44,663,836
Liquidity Requirements and Funds Available for Investing:
Funds immediately available $ 37.720.72e
Restrictions & designations:
Operating liquidity (a) 14.000.000
Liquidity threshold 14,00.000
Funds available for longer term investing $ 23.720.728
Represents largest one month decline in portfolio balance over the most recent 36 month period doubled; or the
equivalent of a 100% cushion.
Portfolio POLICY Policy
Financial Institution Diversification Amount % of Tota MAXIMUM Met?
US Bank $ 17.697.208 39.6% 50.0% Yes
Washington State Treasurer 5.e29.409 13.3% 75.0% Yes
Columbia Bank 14.0e1.112 31am 50.0% Yes
Sound Community Bank 3.127.788 7.0% 50.0% Yes
Other financial institutions 3.815.320 8.5% 50.0% Yes
(a)
250,000
250,000
3,631,413
1,076,976
1,984,719
85% 96% 5%
Total $ 44,663.836 100.0%
Portfolio POLICY Policy
Investment Mix Amount r/0n/Total MAXIMUM Met?
Depository 17,697,208 39.6m insured by PDPC Yes
State Investment Pool 5,929,409 13.3% 75.0% Yes
Money market 14.094.112 31.6% insured by PDPC Yes
Certificate of Deposit 3.377.78e 7.6% insured by PDPC Yes
US Agency - 0.0% 75.0% Yes
Municipal Bonds 3.565.320 8.0% no/mnonoomaumn"nov Yes
Total 44.663.836 100o%
INSINENWZMINENENUMISMIENVICESSISESSIBINMSERMIENCOnstungsnowsuggiummeaggsgfigusamo
Weighted Average Mommes
Certificates of deposit
Municipal bonds
Total Investments
Total Portfolio
POLICY MAXIMUM
Policy Met?
Years
5.7
7.6
6.7
1.0
3.5
Yes
Note: Cash and cash equivalents are available within one day and are factored
into the Total Portfolio weighted average maturity.
18
Performance Analysis
Current portfolio yield
Benchmarks:
6 month treasury
2 year treasury
Local Govt Invst Pool
0.41%
0.07%
0.44%
CITY OF TUKWILA
Cash & Investment Balances By Fund and Fund Group
CASH & INVESTMENT REPORT
March 31, 2014
Balances
03/31/14
General 000 GENERAL 6,690,899
Balances Balances Balances Balances
3/31/13 3/31/12 3t31/11 3/31/10
$ 944197 $n.a77.804 $o.1a1,2or $ 2,e17,387
General Total 8,690.899 944197 3,277.804 3,181,257 2,817,38,
Special Revenue 101 HOTELJMOTeLmx 433,781 440,090 453,083 695,976 961.314
103 STREET 1,350167 1.045.854 919.276 670.123 398,453
104 ARTERIAL STREET 772.003 588,392 4.595.453 10,289.119 5.057.833
105 CONTINGENCY 5.764.212 1.461.267 1.457.830 1.456.806 885,989
107 FIRE EQUIP. CUM. RESERVE 945.312 943.501 804,457 802.232
109 DRUG SEIZURE FUND 68.888 147.083 220.402 283,337 256.766
Special Revenue Total 8,394.470 4.627.998 8'595.703 14.178.619 8.38e.388
Debt Service 306 L|, GUARANTEE 668.897
207 LIMITED TAX G.O. BONDS 1oo8 13.246 38.398
208 LIMITED TAX G.O. BONDS pOun 70 70 104.536
20e LIMITED TAX Go. BONDS nouo 1 3^012.901 3.302.738 (1.5e2) 36.446
210 LIMITED TAX GO. REFUNDING 2003 195 (55) e53 (1.852) 41.080
211 LIMITED TAX ao. REFUNDING x000 416 (81) 5.105 (18.14e) 22.980
212 LTGO SCORE BONDS 1.*53 126 707 (146) '
213 LTGO SCORE BLo AMER BONDS 995 618 (1,392)
214 LTGO 2010 Series A 5.910 (614) 37 37
215 LTGO 2010 Series B 4.612 4.611 17
216 VALLEY COM Refunding bonds 2010 74 14 14 814
217 LIMITED TAX GO BONDS REFUNDING 214 (299)
233 LID #33 42.591 '
Debt Service Total 719.850 3.017.595 3.314.751 (8.e47) 243.440
Capital Project 301 LAND ACQ, REC & PARK DEVLPMNT 1.157.3e1 1.088.513 1.665.327 4.787.800 1.232.251
302 FACILITY REPLACEMENT 1.967.648 2.103.824 2.01e.099 2.051.032 2.074.844
303 GENERAL GOVERNMNT IMPROVEMENTS 404.809 804.988 584.287 1.310.709 364.677
304 FIRE 43e.317 358.809 316.591 185.331 16.119
m��r-------- 3.968.165 4.356.334 1'585.304 8.314.873 6.687.891
Enterprise 400 UTILITY ow ACCT (v,erpapnonts) (1.e29) 22.585 18.449 13.e36 11.159
*01 WATER 5.701.994 5.306.16e 3.9e*.145 4.e*6.612 5.602.009
402 SEWER 3.431,464 1,e17.966 1.219.446 1.605.340 1,802.173
404 WATER/SEWER REVENUE BONDS - 31,866
405 BOND RESERVE 393.5*7
411 FOSTER GOLF COURSE 2e1.314 218.e7e (143.232) (2*3.075) e8.684
412 SURFACE WATER 3.083.605 3.433.716 3.126.e65 3.333.516 2.741.371
Enterpnse Total 12.436,448 10.89e.41* 8.215.773 9.555.929 10.870.809
Internal Service 501 EQUIPMENT RENTAL 4.482.90* 4.388.645 3.652.3*3 3.593.124 3^567.409
502 INSURANCE 5,483,559 6,559,638 6.502.805 5,953,383 5.128.ee6
�p/ 910.864 1.839.349 1.88e.703 1.706.648 1.452.497
intern��er�=er6u�--- 10.877,127 12.7e7.032 12.048.850 11.253.154 10.148.902
43,086,960 36,643,172 40,032,985 46,475,884 38,930,817
Grand Total
Funds not included in the Grand Total are the fiduciary funds and the MPD. However, these balances are included in the investment balances.
CITY OF TUKWILA
Treasury Rates and Yield Curves
CASH & INVESTMENT REPORT
March 31, 2014
Rates at March 31, 2014
3mo
6mo
1Yr
2Yr
3Yr
5Yr
10Yr
30Yr
0.05%
0.07%
0.13%
0.44%
0.90%
1.73%
2.73%
3.56%
Source: US Department of the Treasury
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
20
Rate %
Change Change
-0.02% -40% 3mo
-0.04% -57% 6mo
-0.01% -8% 1Yr
0.19% 43% 2Yr
0.54% 60% 3Yr
0.96% 55% 5Yr
0.86% 32% 10Yr
0.46% 13% 30Yr
Rates at March 28, 2013
0.07%
0.11%
0.14%
0.25%
0.36%
0.77%
1.87%
3.10%
Comparison of Treasury Rates
1,+1,1111(
3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 10 yr 30 yr
-3/31/2014
3/28/2013
TO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Finance Director
BY: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator
DATE: June 10, 2014
SUBJECT: Sales Tax and Miscellaneous Revenue Report — 1st Quarter 2014
Schedule I - Sales Tax
in $1,000's
2014 SALES TAX REVENUE
BUDGETED ANNUAL SALES TAX REVENUE
% of BUDGET
3,508
15,010
23%
Total sales tax collections for the first quarter were $87K below the same quarter in the previous
year. New construction sales tax collection for first quarter was $92K lower compared to the
same quarter in the previous year resulting in a 38% decrease.
As of March 31st, the City has collected $283,066 in sales tax mitigation, which is 24% of the
annual mitigation budget.
21
2013 Actual
2014 Actual
YOY Change
-- Month --
Collected Recd
New I Other I Total
Construe- i Industries I
tion
New I Other I Total
Construct Industries I
tion
New Construction I
Amount % I
Other Industries I Total
Amount % I Amount
%
Jan
Feb
Mar
Mar
Apr
May
$ 76 $1,038 .
77 1,1271
86 i 1,191 i
$ 1,114
1,204
1,277
$ 57 . $ 1,049 .
341 1,0471
56 1,265
$ 1,106
1,081
1,321
$ (19)
(43)
(30)
-25 %.
-56%!
35 %i
$ 11
(80)
74
1 %.
-7%!
6 %�
$ (8)
(123)
44
-1%
-10%
3%
Q -1 Totals
$ 239 : 3,356 :
$ 3,595
$ 147 : 3,361 ;
$ 3,508
$ (92)
-38 %:
5
0 %:
$ (87)
-2%
2014 SALES TAX REVENUE
BUDGETED ANNUAL SALES TAX REVENUE
% of BUDGET
3,508
15,010
23%
Total sales tax collections for the first quarter were $87K below the same quarter in the previous
year. New construction sales tax collection for first quarter was $92K lower compared to the
same quarter in the previous year resulting in a 38% decrease.
As of March 31st, the City has collected $283,066 in sales tax mitigation, which is 24% of the
annual mitigation budget.
21
22
INFORMATIONAL MEMO
Page 2
Below is a graph of sales tax collections by type of industry showing overall change from first
quarter 2013 revenue receipts to first quarter 2014.
$80,000
$ 60,000
$40,000
$ 20,000
s-
$(20,000)
$(40,000)
$(60,000)
$(80,000)
$ (100,000)
$ (120,000)
Construction
Change YTD by Category*
Whol esa le Tra de,
$19,500
Transportation /Warehousing
$4,511
Manufacturin
$(26,516)
$10,237
Retail Trade,
($8,388)
Services,
$ 64,612
Mtsce aneous,
($57,952)
The increase in the Services category is partially due to several new establishments that
previously did not have activity in the previous year. The miscellaneous category includes
activities from unclassifiable establishments. Variance from this category is primarily due to
2013 activity from trust type organizations, which are not reported under a specific NAICS code.
This same type of transaction did not reoccur in first quarter 2014 resulting in the negative
variance.
W: \FIN Projects \Sales Tax Information\2014 \Info Memo Sales Tax - 2014- Q16.2014MEMO.docx
INFORMATIONAL MEMO
Page 3
Schedule II shows the year -to -date sales tax from the top ten industry classifications.
Miscellaneous Store Retailers category had the highest year over year increase at $14,738,
which is largely due to one telecommunications retailer doubling its gross sales in 2014. This is
followed by an increase of $11,899 in the Electronics and Appliances category. This increase is
attributable to acceleration of sales from a systems integrator company. Activity from Clothing
and Accessories category declined by 9% due to lower gross sales from numerous
establishments.
YTD YTD Dollar
Group Name Current Prior Diff. Diff.
* 452 General Merchandise Stores $ 457,216.05 $ 466,670.02 $ (9,454) -2.03%
* 448 Clothing and Accessories $ 408,312.42 $ 447,896.05 $ (39,584) -8.84%
* 722 Food Services, Drinking Places $ 368,046.80 $ 358,380.15 $ 9,667 2.70%
* 443 Electronics and Appliances $ 231,481.44 $ 219,582.46 $ 11,899 5.42%
* 423 Wholesale Trade, Durable Goods $ 221,554.05 $ 211,485.79 $ 10,068 4.76%
* 453 Miscellaneous Store Retailers $ 180,060.33 $ 165,322.25 $ 14,738 8.91%
* 441 Motor Vehicle and Parts Dealer $ 150,336.43 $ 140,120.17 $ 10,216 7.29%
* 444 Building Material and Garden $ 121,708.61 $ 118,007.71 $ 3,701 3.14%
* 451 Sporting Goods, Hobby, Books $ 121,533.13 $ 128,974.84 $ (7,442) -5.77%
517 Telecommunications $ 119,501.04 $ 109,581.23 $ 9,920 9.05%
* Mitigated NAICS Code
Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000
collected year -to -date. The Construction of Buildings category resulted in a 54% decrease from
the prior year due to significant decrease in construction activity from at least four major
contractors. Permitting activity, ascompared to the previous year for the first quarter, also
shows a decline.
YTD YTD Dollar
Group Name Current Prior Diff. Diff.
999 Nonclassifiable Establishments $ 44,223.34 $ 144,238.43 $ (100,015) - 69.34%
236 Construction of Buildings $ 74,747.30 $ 162,909.50 $ (88,162) - 54.12%
* 448 Clothing and Accessories $ 408,312.42 $ 447,896.05 $ (39,584) -8.84%
336 Transportation Equipment Man $ 33,164.24 $ 55,116.29 $ (21,952) - 39.83%
621 Ambulatory Health Care Service $ 10,750.14 $ 21,194.86 $ (10,445) - 49.28%
* 452 General Merchandise Stores $ 457,216.05 $ 466,670.02 $ (9,454) -2.03%
522 Credit Intermediation $ 12,921.88 $ 21,843.91 $ (8,922) - 40.84%
* 451 Sporting Goods, Hobby, Books $ 121,533.13 $ 128,974.84 $ (7,442) -5.77%
511 Publishing Industries $ 23,769.02 $ 29,489.64 $ (5,721) - 19.40%
611 Educational Services $ 11,819.55 $ 16,351.98 $ (4,532) - 27.72%
* Mitigated NAICS Code
W: \FIN Projects \Sales Tax Information\2014 \Info Memo Sales Tax - 2014- Q16.2014MEMO.docx
23
24
INFORMATIONAL MEMO
Page 4
The next two pages show graphs of sales tax receipts the City collected from major industries
between 2010 through the current year. These categories include retail, services, wholesale,
construction, and other consisting of manufacturing, transportation & warehousing, automotive,
and miscellaneous.
$2,400,000
$2,300,000
$2,200,000
$2,100,000
$2,000,000
$1,900,000
$1,800,000
$1,700,000
$1,600,000
$1,500,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
Q1
Services
Q1
Q2
Q3
W: \FIN Projects \Sales Tax Information\2014 \Info Memo Sales Tax - 2014- Q16.2014MEMO.docx
Q4
INFORMATIONAL MEMO
Page 5
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$-
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$-
Wholesale
Q1
Q2
Q3
Construction
Q4
Q1
Q2
Q3
W: \FIN Projects \Sales Tax Information\2014 \Info Memo Sales Tax - 2014- Q16.2014MEMO.docx
Q4
11111111111 2 0 10
111111111112011
2012
2013
llluul 2014
25
26
INFORMATIONAL MEMO
Page 6
Other -Mfg. Trnsp/Wrhsng, Automotive, &
Misc.
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$-
Q1
Q2
Q3
Q4
Revenue received from mitigation has been consistent. The City received $3.79 million in sales
tax and mitigation for the first quarter.
W: \FIN Projects \Sales Tax Information\2014 \Info Memo Sales Tax - 2014- Q16.2014MEMO.docx
INFORMATIONAL MEMO
Page 7
Below is Schedule IV which shows quarterly gambling tax earned for the prior year, and the
current year to date.
Schedule IV - Gambling Tax (a)
(c) 2014
Quarter 2013 2014 Prorated
Earned Actual Actual Budget
INCREASE (DECREASE)
2014 to 2013 Actuals 2014 Actuals to 2014 Budget
Amount % Amount
Q1 $ 557,272 $ 678,358 $ 537,068 $ 121,086 21.73% $ 141,290 26.31%
Compared to 2013 first quarter, the City has collected approximately 22% more in gambling
revenue due to higher receipts.
Schedule V shows monthly admission tax receipts for the prior year and current year to date.
Schedule V - Admissions Tax (b)
(c) 2014
Quarter 2013 2014 Prorated
Earned Actual Actual Budget
INCREASE (DECREASE)
2014 to 2013 Actuals 2014 Actuals to 2014 Budget
Amount % Amount
Jan $ 38,391 $ 47,314 $ 45,833
Feb 32,962 39,544 45,833
Mar 39,901 48,187 45,834
Q1 Totals $ 111,254 $ 135,045 $ 137,500
$ 8,923
6,582
8,286
$ 23,791
23.24% $ 1,481
19.97% (6,289)
20.77% 2,353
21.38% $ (2,455)
3.23%
- 13.72%
5.13%
- 1.79%
Admission tax receipts are 4% below budget for first quarter, and about 21 % above prior year
actual receipts.
Attachments
• Sales Tax Summary
Gambling tax currently includes card games, punch boards, pull tabs, and amusement games.
Excludes golf course admissions tax.
Actuals reflected in Schedules IV and V are amounts earned in fourth quarter 2014.
W: \FIN Projects \Sales Tax Information\2014 \Info Memo Sales Tax - 2014- Q16.2014MEMO.docx
27
N
co
SALES TAX SUMMARY
1st Quarter 2014 (Received in March 2014 - May 2014)
NAICS CONSTRUCTION
236 Construction of Buildings
237 Heavy & Civil Construction
13 TOTAL
716,944
111,237
238 Specialty Trade Contractors 334,704
TOTAL CONSTRUCTION $ 1,162,885 $
Overall Construction Change from Previous Year
13 YTD
162,910
8,406
68,059
239,374 $
14 YTD
74,747
8,564
63,849
147,160
($92,213) -38.5%
YTD
% Diff
-54.1%
1.9%
-6.2%
NAICS
AUTOMOTIVE
13 TOTAL
13 YTD
14 YTD
YTD
% Diff
441* Motor Vehicle & Parts Dealer
615,272
140,120
150,336
7.3%
447* Gasoline Stations
75,449
16,359
16,380
0.1%
NAICS
TOTAL AUTOMOTIVE $ 690,721 $
Overall Automotive Change from Previous Year
RETAIL TRADE
13 TOTAL
156,479 $
13 YTD
166,717
$10,237
14 YTD
6.5%
% Diff
YTD
MANUFACTURING 13 TOTAL 13 YTD 14 YTD % Diff
442* Furniture & Home Furnishings 408,005 95,716 106,808 11.6%
443* Electronics & Appliances 997,182 219,582 231,481 5.4%
311 Food Manufacturing 9,926 1,494 727 -51.3%
312 Beverage & Tobacco Products 5,267 1,402 1,326 -5.4%
313 Textile Mills 670 124 167 34.7%
314 Textile Product Mills 11,042 2,754 2,562 -7.0%
315 Apparel Manufacturing 685 47 111 136.8%
316 Leather & Allied Products 3 1 1 -58.2%
444* Building Material & Garden 565,653 118,008 121,709 3.1%
445* Food & Beverage Stores 206,924 47,886 48,093 0.4%
446* Health & Personal Care 219,169 48,728 55,679 14.3%
448* Clothing &Accessories 2,071,810 447,896 408,312 -8.8%
451* Sporting Goods, Hobby, Books 568,945 128,975 121,533 -5.8%
452* General Merchandise Stores 2,154,523 466,670 457,216 -2.0%
321* Wood Product Manufacturing 1,611 482 739 53.4%
453* Miscellaneous Store Retailers 692,525 165,322 180,060 8.9%
322* Paper Manufacturing 24,030 6,295 6,303 0.1%
454* Nonstore Retailers 174,653 38,735 38,240 -1.3%
323* Printing & Related Support 28,377 7,386 5,649 -23.5%
TOTAL RETAIL TRADE $ 8,059,390 $ 1,777,519 $ 1,769,131
324 Petroleum & Coal Products
325 Chemical Manufacturing
326 Plastic & Rubber Products
23
6,273
4,565
4
1,307
1,406
6
1,432
1,199
74.0%
9.6%
-14.7%
327* Nonmetallic Mineral Products
4,655
1,196
827 -30.9%
331 Primary Metal Manufacturing
332 Fabricated Metal Mfg Products
333 Machinery Manufacturing
1,150
21,801
5,062
6
5,795
1,409
206
1,588
538
3480.2%
-72.6%
-61.8%
I 334* Computer & Electronic Products
6,719
1,156
843 -27.1%
335 Electric Equipment, Appliances
336 Transportation Equipment Mfg
4,944
251,447
207
55,116
634
33,164
205.6%
-39.8%
337* Furniture & Related Products
11,025
2,497
3,294 31.9%
339* Miscellaneous Manufacturing
13,014
2,967
5,221
75.9%
TOTAL MANUFACTURING $ 412,288 $
Overall Manufacturing Change from Previous Year
TRANSPORTATION & WAREHOUSING
481 Air Transportation
482 Rail Transportation
484 Truck Transportation
485 Transit and Ground Passengers
487 Scenic and Sightseeing Tran
488 Transportation Support
491 Postal Services
492 Couriers & Messengers
13 TOTAL
153
1,597
5,820
395
876
39,511
529
787
93,052 $
13 YTD
0
472
1,194
132
144
6,387
115
62
66,537
($26,516) -28.5%
14 YTD
0
6
464
246
281
11,943
98
64
YTD
% Diff
0.0%
-98.6%
-61.1%
86.3%
0.0%
87.0%
0.0%
3.0%
I 493* Warehousing & Storage
746 199 115 -42.4%
TOTAL TRANSP & WHSING $ 50,413 $
Overall Transportation Change from Previous Year
WHOLESALE TRADE
13 TOTAL
8,707 $
13 YTD
13,218
$4,511
14 YTD
51.8%
YTD
% Diff
423* WhIs Trade - Durable Goods
975,482
211,486
221,554
4.8%
424* WhIs Trade - Nondurable Goods
132,473
26,493
36,104 36.3%
425* Wholesale Electronic Markets
2,819
896 717 -20.0%
WHOLESALE TRADE TOTAL $ 1,110,774 $
Overall Wholesale Change from Previous Year
* Sales Tax Mitigation NAICS Codes
6/11 /2014
238,875 $
258,375
$19,500
8.2%
Overall General Retail Change from Previous Year
SERVICES
51X Information
52X Finance & Insurance
53X Real Estate, Rental, Leasing
541 Professional, Scientific, Tech
551 Company Management
56X Admin, Supp, Remed Svcs
611 Educational Services
62X Health Care Social Assistance
71X Arts & Entertainment
13 TOTAL
587,449
97,434
464,703
286,461
29
181,408
58,682
91,502
133,647
13 YTD
154,373
25,094
94,275
36,234
0
29,797
16,352
23,025
29,227
($8,388)
14 YTD
163,719
15,080
105,139
67,755
0
35,676
11,820
18,288
30,733
-0.5%
YTD
% Diff
6.1%
-39.9%
11.5%
87.0%
#DIV /0!
19.7%
-27.7%
-20.6%
5.2%
I 72X* Accommodation & Food Svcs
2,031,720
460,928
485,014
5.2%
81X Other Services
92X Public Administration
TOTAL SERVICES
216,087
61,978
$ 4,211,101 $
Overall Services Change from Previous Year
MISCELLANEOUS
13 TOTAL
000 Unknown 0
111 -115 Agriculture, Forestry, Fishing 668
211 -221 Mining & Utilities 2,071
999 Unclassifiable Establishments 187,778
MISCELLANEOUS TOTAL $ 190,517 $
Overall Miscellaneous Change from Previous Year
13 TOTAL
52,699
14,236
936,241 $
13 YTD
0
43
151
144,238
144,433 $
13 YTD
50,245
17,385
1,000,853
$64,612
-4.7%
22.1%
14 YTD
41,867
148
242
44,223
86,481
($57,952) -40.1%
6.9%
YTD
% Diff
0.0%
243.6%
60.0%
-69.3%
14 YTD
YTD
% Diff
GRAND TOTALS
$15,888,089
$3,594,680
$3,508,472
Grand Total Change from Previous Year
Grand Total Change from Previous Year - Without New Construction
($86,208) -2.40%
$6,005
Copy of TUK Sales Tax Rpt Q1 -2014 PMc xlsx
0.18%
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance & Safety Committee
FROM: David Cline, City Administrator
Shelley Kersiake, City Attorney
DATE: June 4, 2014
SUBJECT: Creating Tukwila Municipal Code 2.97 — Code of Ethics for Elected Officials
and Amending Tukwila Municipal Code 2.95 — Code of Ethics
ISSUE
Creating a Code of Ethics for Elected Officials that also creates a City Board of Ethics.
DISCUSSION
Based on the requests of the Committee members at the June 3, 2014 committee meeting three
new ordinances have been prepared for review and consideration. The first two ordinances
create a new chapter in the Tukwila Municipal Code: 2.97 Code of Ethics for Elected Officials
with differing roles and duties for the Board of Ethics (detailed below) and the third ordinance
amends Chapter 2.95 to no longer apply to elected officials.
Option 1: Creates Chapter 2.97 Code of Ethics for Elected Officials and with the creation of an
Ethics Board comprised of the chair or designee from each of the City's current commissions.
Under this model, the Board would make an initial determination of complaint sufficiency. If the
complaint is found to be initially sufficient, the Board will cause an investigation to be completed.
The investigator will make findings of fact, conclusions and provide a recommendation. Upon
receipt of the investigation report, the Board will determine one of the following:
• That a violation of the ethics code did not occur;
.
• That additional information is needed to make a determination and hold a hearing
which is limited in scope; or
• That a violation of the ethics code did occur.
The Board will draf a recommendation to the Council related to the recommended disposition.
Option 2: Creates Chapter 2.97 Code of Ethics for Elected Officials and with the creation
comprised of the chair or designee from each of the City's current commissions. Under this
model, the Board would make an initial determination of complaint sufficiency. If the complaint is
found to be initially sufficient, the Board will cause an investigation to be completed. The
investigator will make findings of fact but will not draw any conclusions. Upon receipt of the
investigation report, the Board will forward the findings of fact to the Council. The Council will
then determine whether an ethics violation has occurred and render the appropriate penalty, if
necessary.
BACKGROUND
At the Finance and Safety Committee meetings of October 8, October 22 and November 5,
2013 and June 3, 2014 the Committee discussed amending the City's Ethics Code. At the June
3, 2014 meeting the Committee reviewed and discussed three separate ordinances for
consideration:
1. Creation of an Ethics Board comprised of the chairs of the City's current commissions
where the Board would make an initial determination of complaint sufficiency and if
sufficient, the Board will cause an investigation to be completed. The investigator will
INFORMATIONAL MEMO
Page 2
make findings of fact but will not draw any conclusions. The Board will forward the
findings of fact to the Council and the Council will then determine whether an ethics
violation has occurred and render the appropriate penalty, if necessary;
2. Creation of an Ethics Board comprised of the chairs of the City's current commissions
where the Board would make an initial determination of complaint sufficiency and if
sufficient, the Board will cause an investigation to be completed. The investigator will
make findings of fact, conclusions and provide a recommendation. Upon receipt of the
investigation report, the Board will make a determination and draft a recommendation to
the Council related to the recommended disposition; and
3. Creation of an Ethics Board appointed by the Mayor and Council.
Over the course of the past few nnondha. Mayor's office staff members met with the Arts
ConnnniGsion, Civil Service Commission, Equity and Diversity Commission, Park Commission,
and Planning Commission to share information regarding an ordinance amendment that would
create an Ethics Board comprised of the Commission chairs.
After detailed discussions, most commission members were supportive of the proposal to
establish a Board of Ethics comprised of current Commission members.
During the course of the discussion the following questions were raised by several of the
commissions:
• How often has this Code of Ethics been used in the past
• Why is the Council interested in changing the ethics code
• Does it have to be the commission chair as the Ethics Board member? Can each
commission choose any member, which may provide greater consistency
• Who would provide ethics training to the Commission chairs and would training be
offered on a regular basis, i.e. annually;
• How would conflicts be handled in the case of an ethics issue involving a commissioner;
• How would ethics issues regarding employees be handled; and
• Is there a conflict of interest if the Ethics Board member is a City employee?
After reviewing the three options Committee members rejected CreaUng@newCUvBoard.The
Committee members also indicated that they would like to further consider the role and duties of
the Board of Ethics and asked that options 1 and 2 be revised to apply only to elected officials
8Dd8dd|8DgU8gDih81Lh8rnHrnb8rc8nbeGCO[DOOissi0DCh8ir"O[d8SigDeE"8Od[EtUrOk}
Finance and Safety for further discussion.
FINANCIAL IMPACT
None.
RECOMMENDATION
The Council is being asked to recommend Ordinance Option 1 or Ordinance Option 2 and
forward this item, as well as the Ordinance amending Chapter 2.95 to a Committee of the Whole
meeting for discussion and a subsequent Regular Meeting for adoption.
ATTACHMENTS.
Informational Memorandum dated June 4, 2014 with track changes
Minutes from Finance and Safety Committee Meeting of 6/3/14
Minutes from the Finance and Safety Committee Meeting of 11/05/13
Minutes from the Finance and Safety Committee Meeting of 10V22y13
Minutes from the Finance and Safety Committee Meeting of 10/8/13
Ordinances
30
TO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance & Safety Committee
FROM: David Cline, City Administrator
Shelley Kerslake, City Attorney
DATE: June 4, 2014
SUBJECT:
Elecie*
,
Prgatia „I
uhici
al of Ethics for
Tukwila Municipal Code 2.95 — Code of Ethics
ISSUE
Amefidfileg-4--Gitylsgreatinig, a Code of Ethics te-epeate-anfor Elected . ;ia s that alsg prea-
a_citylidord of Ethics-E.-1,8,-44i.
DISCUSSION
Based on the requests of the Committee diseassed-ameeding-the-Citylo4ithies-Gedei,
A[rnerberst the 14-evE)-m4-57-2,04une q, 2014 committee meeting th&-Gefiriffli-ttee4 a
aA-4-d-diis,euesre..d-three seporatenew ordinances forHnavelltingroLa) red forspyiewnd
consideration;
Gc-eation-pf-a-r+-Eithies- 4eG sed-ofithe-onair&-„, I he f rst o ordinances ireate a
in the EY u niqpa)ock:297Co of torE eqtect.QtfleilaifiAittl
differ ind_rdiesand_ddties forthe Board of the-Gitys-fiiii-preht-eemmissien&-Uadar4t4s-rnodeirthe
Boaithwe44-make-ar+-ieitiall-detefneinat4ehiof-loomplaiet-sii4ffie:teewiiiiifithiTiplai
be-leitiailyisaffk4eeti-the-Readrid- heau8e-a-e-1nive-ciitigatioe--to-beicecii4plE4e4i-1114)--ifi ee4jateEwi41
make,14-4hig-sef400tibu1- iiaifly-894(Filusie-es,--Llipee-Hireeei*-0144e-ir-westiga#ohifetoort;
the ad- 4ilii'fi••wat-rd-the-fM; gs4.34-feicA4 41•h-en•8eferm-ine
whethef-airliethieerviolatidiri-h4s-e4:;OURR)d-aed-reeder-tleei-alepfdpfialte-pen,aityrif-heieessafyi-LThis
PrOG- i'-witiEtbicsicigtallickLick.J.ig01.beIhiEci21.41WIC amen( Ei...Q0212tgr...L95
apply to all-elected officials-arRi? 'eted-tai.iar f
C4eatieh-o4 4fl
Patipp ;reates ChEafer 2.97 Code of Ethics for E. ',cted Officio s ond_with the. creatiort
of_olLEthiciLBoard comprised of the ohairscriajr_dr_geaignAg_Lrorn each of the City's current
commissions. Under this model, the Board would make an initial determination of complaint
sufficiency. If the complaint is found to be initially sufficient, the Board will cause an
investigation to be completed. The investigator will make findings of fact, conclusions and
provide a recommendation. Upon receipt of the investigation report, the Board will determine
one of the following:
• That a violation of the ethics code did not occur;
• That additional information is needed to make a determination and hold a hearing
which is limited in scope; or
• That a violation of the ethics code did occur.
The Board will draft a recommendation to the Council related to the recommended disposition.
y-to-a4 --ekFi-eitedioffiolia4s
Qiptign.L.creates Chapter:2.97 Co 'e of Ethics for Elected Officials and with the creatign
compri§edolthe char or designee from each of thfLcitzosidrr_prit corhrrei,ssjoiyiLLInder_tilis
m o dell hp Dqargi wo 01 lina k p..§e n it lot, determiailtioa pis pin (icy. lf the eg kilt.
foartd_ilgize jnitigy„sufficient, the oard wilisedse ortirLyes.figaliqn.lq..bedgrripleled, The
31
INFORMATIONAL MEMO
Page 2
investic ator will make findings of fact but ill not draw aoyconclusio :icon rectili2tpf the
investigation rmort,..the Board will forward the findinsys of fact to the COUll'ICiL The Council will
BACKGROUND
GROU
N
�D
At the Finance and nd� S
Safety Committee n+�niU B� n�nestin6�Qa�+odf
—_|
WbrKe�r
}
5, .
2013 and June :.3,2014 the Committee discussed amending_the (2,1ty's Ethics Code. At the June
2014 meeting_the Committee reviewed and discussed three stgarate ordinances for
consideration:
_,__Creation of an Ethics Board .app€444, y-t*e-f 41,Ek310f-,
�sit-draf .•#-rhe••: hei-e-r-GE,Lhath--crii4ouchstahe•e-s-,49-d-e4414•64:netkel-,--the--Ek9a-tidH
comprised_of thQchaire of t
make k 8
an initial determination of complaint sufficienc
cause an investigation to be completed. The investtgLator ill_ppakelinding& Japl. but
,yyjtifygLstrayy any conclusions. The Board will forward the findinm of fact to the Council
and the Council will then determine whether an et ics violation has occurred and render
fl2fLi1212t1112.0gtcillcialty.Lit fiftcig.q5M1
commissions where the Board would make an. initial determination of Creation of an Ethics Board comprised
complaint "frs,-ff�rt-
d•
sufficient, the Board will cause 8n investigation k]be
completed. The investigator will make findings of fact, conclusions and provide a
recommendation. �-UpVO receipt Of the investigation report, the Board will dete4f-ict8
the foA4
related to the_recomragride.,,Loi§TpsitiprLan_
Of e etNee•-•-code+ "44
iti•la and he-td--a
� -
a
That-a-
October
|:•Iii
8,
'
October 22
and Novem
Over the course of the past few months, Mayor's office staff members ave met with the Arts
Civil Service CVnni8SiOO, Equity and Diversity Commission,
Commission, and Planning Commission to share information regarding an ordinance
amendment that would create an Ethics Board comprised of the Commission chairs. Dee49
i a
After detailed discussions, most commission members were supportive of the proposal to
establish Ethics a-ad-comprised of current Commission members-,---sue-h-as-tho
*ea*pee**, i
by�he4 �, o|^ut+� newhieu--iiee,-0-ne•
32
INFORMATIONAL MEMO
Page 3
�
During the course of the discussion the following questions were raised by several of the
commissions:
• How often has this Code of Ethics been used in the past
• Why is the Council interested in changing the ethics code
• Does it have to be the commission chair as the Ethics Board member? Can each
commission choose any member, which may provide greater consistency
• Who would provide ethics training to the Commission chairs and would training be
offered on a regular basis, i.e. annually;
• How would conflicts be handled in the case of an ethics issue involving a commissioner;
• How would ethics issues regarding employees be handled; and
• Is there a conflict of interest if the Ethics Board member is a City employee?
After reviewing the three giations Committee rnembers creating a new City oard„ 1 he
.(,,‘dairn tee rnernb_prs also indicated that they wiguid itise to fiii,:ther,ognsider.their_plE,),_andidlitipLilt
and add iansluage that the member Ca n be a Commission Chair "or desighee" and return to
FINANCIAL IMPACT
None.
RECOMMENDATION
The Council is being asked to recommend
and forward this dg to a
Committee of the Whole meeting for discussion and a subsequent Regular Meeting for
adoption.
ATTACHMENTS
Vnformationai Memorandum dated June .Z2014. with Vac changs
Minutes from the Finance and Safety Committee Meeting of 11/05/13
Minutes from the Finance and Safety Committee Meeting of 10/22/13
Minutes from the Finance and Safety Committee Meeting of 10/8/13
34
Finance & Safety Committee Minutes June 3, 2014 - Page 2
C. Ordinance: Amending Tukwila Municipal Code Chapter 2.95 - Code of Ethics
In late 2013 the Finance and Safety Committee discussed several iterations of an
ordinance to amend the City's Ethics Code. Most recently, on November 5, 2013, the
Committee discussed three options for the creation of a new Ethics Board. The first option
establishes a five member Ethics Board made up of the Chairs of the City's existing five
Commissions, with adjudication of complaints by the City Council. The second option
establishes a 5 member Ethics Board made up of existing Commission Chairs with
adjudication of complaints by the Board itself. The third option establishes an Ethics Board
made up of three new appointees by the Council and two by the Mayor with adjudication of
complaints by the Board.
Following the November 5, 2013 Committee discussion of those three options, the
Committee asked staff to meet with each Commission to gather feedback on their potential
involvement. In 2014 staff attended meetings of the Arts, Civil Service, Equity and
Diversity, Park, and Planning Commissions to share the proposal and receive input. The
majority of commission members were supportive but raised numerous questions about
implementation.
Committee members discussed the options and decided to reject option 3 that would create
an Ethics Board composed of entirely new appointees. Ethics disputes have historically
been rare in the City and creation of a new Board that would remain largely inactive was
deemed impractical. The Committee would like to further discuss the adjudication process
and asked that options 1 and 2 return to Finance and Safety at a future date with the
following adjustments:
• Revise the proposed ordinance(s) to be applicable only to elected officials. The current
TMC Chapter 2.95 outlines a process that is still applicable to City employees and
appointed volunteers.
• Add language indicating the member can be a Commission Chair "or designee."
• Retain highlighting of every appearance of the phrases "appearance of conflict of
interest or impropriety" or "adverse to the interests of the City" as these will be
discussed by the Committee of the Whole.
RETURN TO COMMITTEE FOR FURTHER DISCUSSION.
III. MISCELLANEOUS
Finance Director Peggy McCarthy noted an area of recent confusion regarding reference to
"retail sales tax," which can include tax generated from construction, and the existence of Retail
as a type of sector. Although this terminology is correct, she will remind Council of the dual
meanings in future discussions.
Committee members and staff discussed the draft 2015 -2016 City Priorities that were presented
at June 2 Regular Meeting. Some Councilmembers expressed an interest in reviewing those
again prior to Budget review, and a follow -up meeting has been proposed.
Meeting adjourned at 6:53 p.m.
Next meeting: Tuesday, June 17, 2014 - 5:30 p.m. - Hazelnut Conference Room
Committee Chair Approval
Minutes by LH, Reviewed by PM
35
36
Finance & Safety Committee Minutes November 5, 2013 — Page 2
current system. While exempting properties with 1 -4 units from the RGRL fee will reduce annual revenue
by approximately $11,495, the savings in staff time makes this a cost - effective proposal. Additionally,
Code Enforcement staff will have more time to focus on health, safety and maintenance components of
rental housing. MAJORITY APPROVAL. FORWARD TO NOVEMBER 18 REGULAR MEETING
FOR DISCUSSION UNDER NEW BUSINESS.
E. Ordinances: 2014 Property Tax Levy
Staff is seeking Council approval of two ordinances: one that would increase the City's Regular Property
Tax Levy from 2013, and one that would levy General Taxes. These ordinances are presented to the
Council on an annual basis. According to the King County Assessor, the projected assessed value for
Tukwila is $4,707,092,379. The allowable levy projected by King County is $14,043,979, representing the
maximum 1% increase allowed by law. This is subject to change until the final rate is determined by the
County. A levy amount of $14,100,000 is proposed in the draft ordinance and may be adjusted based on
that determination. Because the County is now aware that the City has a firemen's pension fund, the
City's maximum statutory levy rate is $3.325, pursuant to RCW 27.12.390. This is an increase that gives
the City additional capacity for future growth or levy lid lifts. Staff distributed a table indicating actual
property tax collection for 2011 -2013 and projections for 2014 -2017. Committee members asked that this
table be attached to the information memo for Committee of the Whole discussion. A public hearing is
scheduled for November 12, 2013. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 12
COMMITTEE OF THE WHOLE FOR PUBLIC HEARING AND DISCUSSION.
F. Budget Legislation
1) Staff is seeking Council approval of a resolution to adopt the 2014 -2019 Financial Planning Model and
Capital Improvement Program (CIP). Drafts of these documents were presented to the Council at a
workshop on August 28, and the Utilities and Transportation Committees conducted further review in
September. Staff reviewed an attachment to the informational memo that lists all of the changes made to
the CIP since it was first proposed in August. Committee members asked clarifying questions of items they
considered to be large policy questions, including:
Fund 104: Bonding of total $5,965,000.00 for the Boeing Access Road over BNRR Bridge
Rehabilitation and Interurban Avenue South projects. Committee members and staff agreed that
further review of the City's debt policies in general would be valuable, using this as an example.
Fund 301/412: Tukwila 205 Levee, Riverton Creek Flap, and Lower Gilliam projects moved from
Parks to Surface Water Fund. This will be reviewed further in Committee of the Whole. Additionally,
the Utilities Committee has just fonvarded to the Committee of the Whole an ordinance amending the
definition of Surface Water Management Conveyance Systems to include dikes, levees, and revetments.
2) Staff is seeking Council approval of an ordinance to amend the 2013 Budget. Staff provided an
overview of the proposed changes, including new proposals, items over budget, previous Council
approvals, revenue backed expenditures, accounting changes, and carryover. A public hearing is
scheduled for November 12, 2013. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 12
COMMITTEE OF THE WHOLE FOR PUBLIC HEARING AND DISCUSSION.
G. Ordinance: Ethics Code
As follow up to the Committee's requests during the October 22 meeting, City Attorney Shelley Kerslake
returned with three options for a proposed Ethics Code applicable to elected and appointed officials and
City staff. The first option establishes a 5 member Ethics Board comprised of existing Commission Chairs
with adjudication of complaints by the City Council. The second option establishes a 5 member Ethics
Board comprised of existing Commission Chairs with adjudication of complaints by the Board itself. The
third option establishes an Ethics Board comprised of three new appointees by the Council and two by the
Mayor with adjudication of complaints by the Board. The Committee discussed the options, and
highlights from that discussion are:
37
Finance & Safety Committee Minutes November 5, 2013 - Page 3
• The Committee asked the City Attorney to insert the phrase "board attorney" throughout but
define that to mean City Attorney in the case of complaints against employees and Outside
Counsel for complaints against officials. She was also requested to add to the informational memo
a summary of fiscal impact which includes a range of costs associated with hiring outside counsel.
• The City Attorney clarified that "recommended disposition" means the determination of a
violation, not the penalty.
• Committee members remain divided on the inclusion of the terms "appearance of impropriety"
and "adverse to the interests of the City," and will debate that further in Committee of the Whole.
• Training will be provided to members in either board makeup option. This training could occur
annually, with a refresher offered when a complaint is made.
The Committee agreed to recommend an Ethics Board comprised of existing Commission Chairs with
adjudication by the Board as long as there is a strong training component. This recommendation will be
dependent on majority approval by members of the five Commissions, and to that end the Committee
asked the City Administrator or his designee to present the proposal at forthcoming meetings of those
Commissions. If majority approval is not obtained, than the option to create a unique Ethics Board will
again be reviewed by the Finance and Safety Committee.
III. MISCELLANEOUS
Meeting adjourned at 7:16 p.m.
Next meeting: Tuesday, November 19, 2013 - 5:30 p.m. - Conference Room #3
Minutes bytLH
38
Committee Chair Approval
Finance & Safety Committee Minutes October 22, 2013 — Page 2
D. Permit User Fee for Technology Investments
Staff is seeking Council direction on the adoption of a new technology fee on building, public works and
land use permits. Revenues from the fee would offset the total $356,460 cost of the new "Trakit" permit
processing system as well as potentially fund the cost of preserving and providing electronic access to
current and historical permit records. A combination of technology fee revenue and funds from the
microfilming/digitizing budget would enable the Digital Records Coordinator position in the Office of the
City Clerk (currently at 3/4 time) to become full time in 2014. Trakit integrates with the City's digital
records repository through Laserfiche, providing web -based accessibility of finalized permit records to the
public, and would result in less staff time spent on processing public records requests.
A survey of other local jurisdictions indicates that many cities are applying a technology fee, and it is
either a flat fee, fee per sheet, or percentage of the permit fee ranging from 1.3 to 5 %. Materials in the
Committee packet provide estimated revenues from technology fees at varying percentage levels for the
past several years as well as for an average permit revenue of 1.3 million dollars. For example, a
technology fee set at 5% is estimated to bring in $65,000 annually. Staff recommends that Council
consider imposing the technology fee at the 5% level. Provided for the Committee's review is a draft
resolution that would impose a technology fee at the recommended 5% level, eliminate hourly fees
imposed on complex permits, and finally, consolidate various but related fees into one schedule. There is a
companion draft ordinance that would remove permit fees from Tukwila Municipal Code 16.04, Buildings
and Construction, in accordance with this consolidation.
The Community Affairs and Parks Committee also received a briefing on this proposal at its October 14
meeting, and in response to questions that arose then, the memo was updated to include information about
the level of service provided by the comparison cities in Attachment A. None of the surveyed cities offer
online accessibility to finalized permit records as Tukwila would under the 5% fee proposal. The revised
Attachment A also includes a column indicating whether the comparison city imposes a B &O tax. A new
table was added that shows a 10 year payback period for Trakit and the remaining available funds at
different fee levels for digital records and technology replacement.
After discussion and clarification of questions, Committee members were supportive of the fee at the 5%
level. Decision - making regarding the level of funding for records management will be part of the 2014
budget review if the fee is approved by Council. FORWARD TO OCTOBER 28 COMMITTEE OF
THE WHOLE.
E. Ordinance— Interfering with Traffic
Staff is seeking Council approval of an ordinance that would establish new regulations relating to
interfering with traffic to be codified as Chapter 9.21 in the Tukwila Municipal Code. Conduct by
pedestrians interfering with traffic in City rights -of -way not only causes congestion but is a public safety
concern. This proposal would replace the current ordinance prohibiting certain types of solicitation, which
does not address traffic interference by all types of pedestrians. The proposed ordinance would prohibit
traffic interference in a public right -of -way and establish penalties for violation. In practice, officers who
observed such activity would give the violator a written warning before issuing the infraction.
UNANIMOUS APPROVAL. FORWARD TO OCTOBER 28 COMMITTEE OF THE WHOLE.
F. Ordinance — Ethics Code
As follow up to the Committee's requests from the October 8 meeting, City Attorney Shelley Kerslake
returned with a proposed ordinance that establishes a single ethics code for elected officials, appointed
officials, and City employees. The proposal establishes an appointed Ethics Board which would receive
complaints of ethics violations and make an initial determination of sufficiency. Following an
investigation by an independent investigator, Council would make the final determination based upon the
facts. The revised proposal also includes a new section regarding penalty options for elected officials.
39
Finance & Safety Committee Minutes October 22, 2013 — Page 3
The City Attorney stated that the Administration's current recommendation is to establish an appointed
Ethics Board that would make the initial determination of sufficiency and then continue its role as
adjudicator for the entire complaint. If a violation is determined it would then go the Council for the
penalty phase. The Board would also have a dual role of issuing advisory opinions which would be a
benefit for City officials and employees.
Committee Chair Robertson mentioned his ongoing concern about language relating to "appearance of
impropriety" and "adverse to the interests of the City." He requested that every instance where that
language appears be underlined for Committee of the Whole discussion. Councilmember Quinn added that
he would like to see a stringent qualifications component relating to the appointment of board members.
Committee Chair Robertson then brought forth a suggestion that, instead of establishing a new board, the
standing chairs of existing boards and commissions (e.g. Planning Commission) receive appropriate
training and form an ad hoc ethics committee when an incident arises. If an individual did not wish to
participate the next senior member would be approached. By virtue of their existing appointment these
individuals would already have experience in City operations as well as the ethics code. The Committee
was not unanimous on this proposal but requested it be prepared for further discussion.
After further discussion, the Committee requested the following be prepared and presented at another
Finance and Safety meeting prior to advancing to the Committee of the Whole:
• Option proposing an appointed Ethics Board with a makeup of five members, two to be appointed by
the Mayor and three by the Council. The proposal will include rigorous standards of qualification.
This option would have the investigator's findings of fact return to the Board for adjudication because
of those rigorous standards.
• Option proposing an Ethics Board comprised of current chairs of existing City boards /commissions,
then adjudication by the Council after an investigator produces findings of fact.
• Option proposing an Ethics Board comprised of current chairs of existing boards /commissions, then
adjudication by the ad hoc Ethics Board after an investigator produces findings of fact.
• Addition of definitions that may include examples of "appearance of impropriety" and "adverse to the
interests of the City."
• Cover memos explaining each option.
• In Section 6, TMC 2.95.040 (D), change "the City Attorney's Office" to "outside counsel" in the last
sentence.
• In Section 7, TMC 2.95.045 (A), add the Mayor, Councilmember, and City Clerk to the list of those
receiving a copy of a complaint.
• In Section 7, TMC 2.95.045 (K), reinstate "elected official" in the last sentence.
DISCUSSION ONLY. RETURN TO FINANCE AND SAFETY COMMITTEE.
G. Police Department 2013 3`d Quarter Report
Assistant Chief Linton shared a presentation that updated the Committee on items of significance that
occurred in the Police Department during the third quarter. The information included highlights, crime
statistics and crime reduction strategies. He also distributed a staffing updates chart, Seattle Times blog
post relating to the guilty pleas by the owners of the Travelers Choice and Great Bear motels, and a map of
residential burglary case reports. INFORMATION ONLY.
III. MISCELLANEOUS
Meeting adjourned at 7:15 p.m.
Next meeting: Tuesday, November 5, 2013 — 5:30 p.m. — Conference Room #3
Committee Chair Approval
Minutes by H, Item F reviewed by SK
40
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
October 8, 2013-5:30y.m' Conference Room #3
x�'^ Tukwila
City of � ��g3J��J
-' �
Finance and Safety Committee
PRESENT
Councilmembers: Dennis Robertson, Chair; De'Sean Quinn and Verna Seal
Staff: Stephanie Brown, Kim Gilman, Peggy McCarthy, Vicky Carisen, Jennifer Ferrer-Santa Ines,
Shelly Kcrslulcc, Kimberly Matej, Laurel Humphrey
CALL TO ORDER: Committee Chair Robertson called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
No presentations.
II. BUSINESS AGENDA
Consensus existed to take up items D and E as the first and second order of business. respectively.
A. Resolution — Cancellation and Repo i of 2013 Unclaimed Property
Staff is seeking Council approval of the annua resolution tha would declare the cancellation of abandoned
or unclaimed property that is owed to individuals or business owners in time for reporting to the
Washington State Department of Revenue Unclaimed Property Section by November 1, 2013. This year's
report includes the cancellation of outstanding General Fund claims and payroll checks in the total amount
of $1,933.16. The City has performed due diligence in notifying the property owners, and checks were
issued to those who were successfully contacted through that effort. UNANIMOUS APPBiOVA|L,
FORWARD TO OCTOBER 21 REGULAR CONSENT AGENDA.
B. Ordinance—Amending Ordinance No. 2408 relating to the Final Assessment Roll for LID No. 33
Staff is seeking Council approval of an ordinance that would amend Ordinance No. 2408 by replacing its
Exhibit B. the final assessment roll for Klickitat Local Improvement District No. 33. After the passage of
Ordinance No. 2408, it was discovered that eight parcels on the assessment roll contained outdated
ownership data, and a corrected Final Assessment Roll must be adopted via a new ordinance. The
corrected Final Assessment Roll also contains an annotation relating to an exemption for the King County
Housing Authority on two parcels. The exemption was discovered after the assessment process had begun
and it was determined that it would not be cost effective to start over. UNANIMOUS APPROVAL.
FORWARD TO OCTOBER 21 REGULAR CONSENT AGENDA.
C. Two Ordinances — Ethics Code for Elected Officials and for Employees undAppointedO[Griu]u
Committee Chair Robertson provided an overview of a proposal to revise the Code of Ethics by adding a
new chapter covering elected officials to include both the Council and the Mayor. A companion ordinance
would amend the existing Code to remove the reference to elected o[Goiu)s, making it applicable only to
City employees and appointed officials. This review and proposed revision to the Code was requested by
the Council at its 2013 retreat, based upon a review of ethics policies for officials in other local municipal,
�N���~�� couutyand state govcruzncoto.The proposal ronzovculanguage prohibiting ^`oypeuzunocnf iznprnp6c/y''ua
��
-- well as activity that might be seen as adverse to the interests of the CiLy." on the grounds that those are
concepts difficult to define and enforce and are not widely used in the comparison jurisdictions. }\uo\hc,
impetus for the proposal is that all of the jurisdictions reviewed have a process under which investigations
and decisions of complaints against elected officials are either performed by an ombudsman, appointed
citizen board or the Council, and none have a process under which the Mayor performs the review or
makes the final determination.
Finance & Safety Committee Minutes October 8,20t9— Page 2
The investigation process outlined by the proposed ordinance begins with initial complaints fio1going 0o
the Council President, who would review the validity of the complaint along with two other
Councilmembers of his or her choosing. (If the complaint is against the Council President, it would then go
to the next most senior Councilmember.) If the initial review determines that the complaint is valid, it will
next go to an investigator retained by the Council, who will investigate and provide results to the Council
President for action. The Council President and two Councilmembers will prepare a written
recommendation that is then discussed and decided by the entire Council with the exclusion of the
complained about official.
Committee members, staff, and the City Attorney discussed this proposal at length. Committee Chair
Robertson proposed a further suggestion to add the City Attorney to the group of Council President and
two Councilmembers undertaking the preliminary review of the complaint validity. The City Attorney
stated that the Mayor's Office recommends that the Mayor should remain in the existing Code Chapter
2.95 to have the same process as City employees and appointed officials in keeping with Tukwila's
separation of powers structure.
Councilmember Quinn proposed that the Committee consider an appointed Ethics Board model, citing the
City of Federal Way's Code of Ethics as a favorable example. Under this proposal, he would like to see the
Council, Mayor and employees have the same review process, and the Council would not be involved in
the preliminary determination of complaint or in an investigatory role. Councilmembers and staff
discussed the ethics board model as well as the language regarding "appearance of impropriety" and
"interests appearing adverse to the City." The City Attorney provided several real-world examples when
those principles were legally applicable. Ultimately, Councilmembers Quinn and Seal stated they would
like to retain that language applying to elected n[Gcio}s, employees, and appointed officials.
Councilmember Robertson remained opposed. Committee members agreed in concept on a process of a
preliminary review of validity by an appointed ethics board, an investigation of facts by an independent
attorney, and a determination made by the Council.
The Committee requested this issue return to the October 22 meeting, and requested the City Attorney
prepare a proposal for a code that would apply to the Council and employees and incorporate an ethics
board component. In addition, they requested to see options regarding the position of Mayor in the process.
DISCUSSION ONLY. RETURN TO COMMITTEE ON OCTOBER 22, 2013'
D. l Benefits
Staff is seeking Council approval of a resolution that would update health insurance benefits for
Councilmembers. Since 2001, Councilmembers have received a benefit in which they can receive
reimbursement for eligible medical expenses up to $3,400 per year. However, due to the Patient
Protection and Affordable Care Act (PPACA) of 2007, this expense reimbursement option is considered a
stand-alone health plan and therefore prohibited after January 1, 2014. The Council previously had the
option to enroll in the City's Self-Insured Medical/Dental plan, but with the changes due to the PPACA,
continuing this enrollment option is now the only medical benefit available to Councilmembers.
Enrollment in the plan would be available this December for coverage beginning January 1. The City plan
would be secondary for Councilmembers receiving insurance through their workplace, and primary for
those on a Medicare plan. The premium of $509.94 for an individual Couneilmember per month would be
paid by the City as it is for employees.
lurespoosm0o[oo�uiUncmeo�hnrgucxd000.�rrcuo��oondOhcpr oun�dol1be0ciobec22Couzoz�ec
meeting with information regarding a Group Health option and clarification on the tier of coverage for
those who already have primary and secondary insurance. In uddilinn, staff is planning to add a recital to
the resolution that explains the impetus for the change. Education on the change to Council benefits will be
provided to Councilmembers on an individual or group basis as appropriate. DISCUSSION ONLY.
RETURN TO COMMITTEE ON OCTOBER 22, 2013.
42
Option 1
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING A CODE OF ETHICS
FOR ELECTED OFFICIALS, TO BE CODIFIED AT TUKWILA
MUNICIPAL CODE CHAPTER 2.97; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City of Tukwila wishes to provide uniform guidance to elected officials
on ethical issues; and
WHEREAS, State law prohibits certain conduct of City elected officials while serving
the City; and
WHEREAS, the City desires to provide for uniform investigation and adjudication of
ethics complaints;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Code of Ethics Established. A Code of Ethics for Elected Officials, to
be codified as Tukwila Municipal Code (TMC) Chapter 2.97, "Code of Ethics for Elected
Officials," is hereby established to read as follows:
CHAPTER 2.97
CODE OF ETHICS FOR ELECTED OFFICIALS
Sections:
2.97.010 Purpose
2.97.020 Definitions
2.97.030 Prohibited Conduct
2.97.040 Board of Ethics
2.97.050 Complaint Process
2.97.060 Penalties for Noncompliance
2.97.070 Where to Seek Review
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Section 2. TMC Section 2.97.010 is hereby established to read as follows:
2.97.010 Purpose
A. It is the policy of the City of Tukwila to uphold, promote and demand the highest
standard of ethics from all of its Elected Officials. Elected Officials shall maintain the
utmost standards of personal integrity, truthfulness, honesty and fairness in carrying out
their public duties; avoid any improprieties or material misrepresentations regarding their
roles or authority as public servants, including the appearance of impropriety as defined
herein; and never use their City positions or powers for improper personal gain.
B. It is the intention of the City Council that TMC Chapter 2.97 be liberally interpreted
to accomplish its purpose of protecting the public against decisions that are affected by
undue influence, conflicts of interest, or any other violation of this Code of Ethics. In
interpreting TMC Chapter 2.97, Elected Officials should be guided by common sense and
practicality. This Code of Ethics is supplemental to Washington state law, ROW Chapter
42.23.
Section 3. TMC Section 2.97.020 is hereby established to read as follows:
2.97.020 Definitions
As used in TMC Chapter 2.97, these words shall have the following meanings, unless the
context clearly indicates otherwise:
1. "Appearance of impropriety" refers to a situation which to a reasonable
person without knowledge of the specific circumstances might seem to raise ethical
issues. An example of such conduct could be when a person regularly and reliably
collects money for his or her employer in his or her personal wallet and later gives it to his
or her employer. By putting it in his or her personal wallet, it may look improper and give
rise to suspicion.
2. "Adverse to the interests of the City" means taking action which could
damage or prejudice the interests of the City or its citizens.
3. "Business" means any corporation, partnership, sole proprietorship, firm,
enterprise, franchise, association, organization, self-employed individual, consultant,
holding company, joint stock company, receivership, trust, or any legal entity organized for
profit.
4. "Elected Official" means every individual elected to an office or position with
the City.
5. "Compensation" means payment in any form for real or personal property or
services of any kind.
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6. "Gift" means a voluntary transfer of real or personal property of any kind or
the voluntary rendition of services of any kind without consideration of equal or greater
value, but not including any reasonable hosting expenses, including travel, entertainment,
meal, and refreshment expenses incurred in connection with appearances, ceremonies,
and occasions reasonably related to official City business, or where otherwise permitted by
law.
7. "Hearing Examiner" shall mean the duly appointed and qualified Hearing
Examiner for the City of Tukwila, or his/her designee.
8. "Immediate family" shall mean spouses, dependents, anyone residing in the
person's household, and anyone within three generations by blood or marriage of the
person or the person's spouse (e.g., within three degrees of relationship by blood or
marriage).
9. "Person" means any individual, corporation, business or other entity, however
constituted, organized or designated.
Section 4. TMC Section 2.97.030 is hereby established to read as follows:
2.97.030 Prohibited Conduct
The following shall constitute violations of this Code of Ethics:
1. General Prohibition Against Conflicts of Interest. In order to avoid
becoming involved or implicated in a conflict of interest or impropriety, or an appearance of
conflict of interest or impropriety, no current Elected Official should be involved in any
activity that might be seen as interests conflicting with the conduct of official City business or as
adverse to the nterests of the City, Even the appearance of the conduct prohibited in
. i TMC Section 2.97.030 alone may be sufficient to constitute a violation of this Code of
Ethics.
2. Beneficial Interests in Contracts Prohibited. No Elected Official shall
participate in his/her capacity as an Elected Official in the making of a contract in which
she/he has a financial interest, direct or indirect. This shall include any contract for sale,
lease or purchase, with or for the use of the City, or the acceptance directly or indirectly of
any compensation, gratuity or reward from any other person beneficially interested therein.
Provided, however, that this prohibition shall not apply where the Elected Official has only
a remote interest in the contract, and where the fact and extent of such interest is
disclosed and noted in the official minutes or similar records of the City prior to formation of
the contract, and thereafter the governing body authorizes, approves or ratifies the
contract in good faith, by a vote of its membership sufficient for the purpose without
counting the vote(s) of the official(s) having the remote interest. For purposes of this TMC
Chapter 2.97, a "remote interest" means:
a. That of a non-salaried officer of a nonprofit corporation;
b. That of an employee or agent of a contracting party where the
compensation of such employee or agent consists entirely of fixed wages or salary;
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c. That of a landlord or tenant of a contracting party; or
d. That of a holder of less than one percent of the shares of a corporation, a
limited liability company, or other entity, which is a contracting party.
3. Beneficial Influence in Contract Selection Prohibited. No Elected Official
shall influence the City's selection of, or its conduct of business with, a corporation, person
or firm having or proposing to do business with the City if the Elected Official has a
financial interest in or with the corporation, person or firm, unless such interest is a remote
interest and where the fact and extent of such interest is disclosed and noted in the official
minutes or similar records of the City prior to formation of the contract.
4. Representation of Private Person at City Proceeding Prohibited. No
Elected Official shall appear on behalf of a private person, other than him/herself or an
immediate family member, or except as a witness under subpoena, before any regulatory
governmental agency or court of law in an action or proceeding to which the City or an
Elected Official in an official capacity is a party, or accept a retainer or compensation that
is contingent upon a specific action by the City.
5. Certain Private Employment Prohibited. No Elected Official shall engage
in or accept private employment from — or render services for — any private interest, when
such employment or service is incompatible with the proper discharge of official duties or
would tend to impair independence of judgment or action in the performance of official
duties.
6. Beneficial Interest in Legislation Prohibited. No Elected Official, in
appearing before the City Council or when giving an official opinion before the City
Council, shall have a financial interest in any legislation coming before the City Council or
participate in any discussion with or give an official opinion to the City Council, unless such
interest is a remote interest and where the fact and extent of such interest is disclosed and
noted on the record of the Council or similar records of the City, prior to consideration of
the legislation by the City Council.
7. Disclosure of Confidential Information Prohibited. No Elected Official
shall disclose or use any confidential, privileged or proprietary information, gained by
reason of his/her official position, for a purpose which is other than a City purpose;
provided, however, that nothing shall prohibit the disclosure or use of information which is
a matter of public knowledge, or which is available to the public upon request.
8. Improper Use of Position Prohibited. No Elected Official shall knowingly
use his/her office or position to secure personal benefit, gain or profit, or use his/her
position to secure special privileges or exceptions for him/herself, or for the benefit, gain or
profits of any other persons.
9. Improper Use of City Personnel Prohibited. No Elected Official shall
employ or use any person under the Elected Official's official control or direction for the
personal benefit, gain or profit of the Elected Official or another. This section does not
apply to off-duty employment relationships, which are mutually negotiated.
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10. Improper Use of City Property Prohibited. No Elected Official shall use
City owned vehicles, equipment, materials, money or property for personal or private
convenience or profit. Such use is restricted to those services which are available to the
public generally, for the authorized conduct of official City business, and for such purposes
and under such conditions as are approved by administrative order of the Mayor or
Council; provided, however, that the use of a City vehicle by an Elected Official
participating in a carpooling program established by the City, and for a purpose authorized
under such program, shall not be considered a violation of TMC Chapter 2.97 or any other
provision of the Tukwila Municipal Code.
11. Acceptance of Compensation, Gifts, Favors, Rewards or Gratuity
Prohibited. No Elected Official may, directly or indirectly, give or receive, or agree to give
or receive, any compensation, gift, favor, reward or gratuity, for a matter connected with or
related to the Elected Official's services with the City of Tukwila; provided, however, that
this prohibition shall not apply to:
a. Attendance by an Elected Official at a hosted meal when it is provided in
conjunction with a meeting directly related to the conduct of City business, or where official
attendance by the Elected Official as a City representative is appropriate;
b. An award publicly presented in recognition of public service; or
c. Any gift valued at $100.00 or less, which gift cannot reasonably be
presumed to influence the vote, action or judgment of the Elected Official, or be
considered as part of a reward for action or inaction.
12. Impermissible Conduct After Leaving City Service.
a., Disclosure of Privileged, Confidential, or Proprietary Information
Prohibited. No former Elected Official shall disclose or use any privileged, confidential or
proprietary information gained because of his/her City position.
b. Participation in City Matters Prohibited. No former Elected Official shall,
during the period of one year after leaving City office:
(1) Assist any person in matters involving the City if, while in the course
of duty with the City, the former Elected Official was officially involved in the matter, or
personally and substantially participated in the matter, or acted on the matter; or
(2) Participate as or with a bidder, vendor or consultant in any
competitive selection process for a City contract in which he/she assisted the City in
determining the project or work to be done, or the process to be used.
Section 5. TMC Section 2.97.040 is hereby established to read as follows:
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2.97.040 Board of Ethics
A. There is created a Board of Ethics for the City of Tukwila. The purpose of this
Board of Ethics is to review ethics complaints for an initial determination of sufficiency
before an investigation is initiated, adjudicate ethics complaints against Elected Officials
and provide advisory opinions for Elected Officials, when requested.
B. The Board of Ethics shall be composed of five members and shall be comprised
of the Chairsone member from each of the City's five standing Commissions: the
Planning Commission, the Arts Commission, the Park Commission, the Equity and
Diversity Commission and the Civil Service Commission. Should the chair of any
commission be unable or unwilling to serve on the Board of Ethics, the most•seniof
member of the Commission shall select a member to serve on the Board.
C. The Chair of the Board shall be elected by the Board members and shall serve as
Chair for one year, at which time a new election shall occur.
D. A majority of the Board of Ethics shall constitute a quorum. The Board shall meet
as frequently as it deems necessary and in accordance with the provisions of the Tukwila
Municipal Code. The Board shall adopt procedures consistent with the provisions of the
Tukwila Municipal Code governing the conduct of its meetings. The Board shall be
supported by outside counsel.
E. The powers of the Ethics Board include rendering sufficiency determinations as
described in TMC Section 2.97.050, adjudicating ethics complaints against Elected
Officials and responding to requests from City-elected officials for advisory opinions
regarding the application of the Code of Ethics to the prospective conduct of such person.
2.97.050 Complaint Process
A. A complaint that this Code of Ethics has been violated may be filed with any one
of the following officers, or his/her designee(s):
1 Mayor; or
2. City Attorney
B. No person shall knowingly file a false complaint or report of violation of this Code
of Ethics.
C. Any individual receiving a complaint that this Code of Ethics has been violated
has an obligation to promptly forward the complaint, in writing, to the Board of Ethics for a
sufficiency determination. After reviewing the complaint, the Board may take any of the
following actions and inform the complainant, the respondent and the City Attorney or
Mayor, as appropriate:
1. Determine that the facts stated in the complaint, even if true, would not
constitute a violation of the Code of Ethics.
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2. Determine that the facts stated in the complaint, even if true, would not
constitute a material violation of the Code of Ethics because any potential violation was
inadvertent or minor or has been adequately cured, such that further proceedings on the
complaint would not serve the purposes of the Code of Ethics.
3. Make a preliminary determination that the facts stated in the complaint, if
true, could potentially constitute a violation of the Code of Ethics such that further
proceedings are warranted.
D. The Board shall submit a written report with its findings within 10 days of its
receipt of the written complaint. The Board's determination of sufficiency is final and
binding and no appeal is available. If the Board finds the complaint sufficient, then the
complaint shall be investigated as set forth below.
E. For all sufficient complaints, the City Attorney shall promptly designate an
individual to conduct an investigation of the complaint and shall forward a confidential
memorandum to all Councilmembers informing them that a complaint has been made.
F. The individual designated to conduct the investigation shall notify the subject of
the complaint that a complaint has been made. The designated investigator shall then
complete the investigation and prepare written findings and conclusions within 60 days of
the date the complaint is deemed sufficient, unless an extension is granted in writing by
the City Attorney. A copy of the written investigation findings and conclusions shall be
provided to the City Attorney.
G. Within 5 business days of receipt of the investigator's written findings and
conclusions, the City Attorney shall forward a copy of the investigation to the Chair of the
Ethics Board. Copies of the recommended disposition and investigation findings and
conclusions shall be forwarded by certified mail to the complaining party and the party
complained against at their last known addresses.
H. Within 10 business days of receipt of the investigator's report, the Board of Ethics
shall convene and review the complaint, findings, conclusions and recommended
disposition. As soon as practicable after giving due consideration to the complaint, the
Board shall take any action or combination of actions that it deems appropriate and for
which it is lawfully empowered to take including, but not limited to, the following:
1. Determine that no violation of the Code of Ethics has occurred.
2. Determine that a violation of the Code of Ethics has occurred.
3. If the Board determines that it needs more information to make a
determination as to whether the Code of Ethics has been violated, it may convene a
hearing to take such additional evidence as required by the Board. The scope of evidence
requested by the Board should be strictly construed. At such hearing, the Board may call
additional witnesses or consider additional documentary evidence. After final deliberations
on the investigator's findings, as well as any additional testimony, statements, or
documents presented at the hearing, the Board shall determine whether or not a violation
of the Code of Ethics has occurred.
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4. After the Board has made its final determination under TMC Section
2.97.050, subsection H, (1), (2) or (3), the Board shall issue its written findings of fact and
conclusions of law, along with its recommended disposition, if applicable. The Board's
conclusions shall be based on the preponderance of evidence standard. The Board may
recommend and the City Council may impose upon any Elected Official the penalties set
forth in TMC Section 2.97.060.
5. Copies of the written findings of fact, conclusions and recommended
disposition of the Board shall be forwarded by certified mail to the complaining party and
the party complained against at their last known addresses. Additional copies shall be
forwarded to the investigator, the City Attorney (or independent legal counsel), and the
City Council.
I. The written findings of fact, conclusions and recommended disposition shall be
placed on the next regularly scheduled Council meeting agenda for discussion and
disposition pursuant to TMC Section 2.97.060, by majority vote of the Council.
J. Ex Parte Communications. After a complaint has been filed and during the
pendency of a complaint before the Board, no member of the Board may communicate
directly or indirectly with any party or other person about any issue or fact or law regarding
the complaint, except that members of the Board may obtain legal advice with the
assigned independent outside counsel.
K. The party complained against may, within 10 business days following the date
of a recommended disposition that finds a violation of this Code of Ethics, request a
formal hearing before the Hearing Examiner. A request for a formal hearing shall be in
writing. Except for good cause shown, the hearing shall be scheduled to take place not
sooner than 20 days nor later than 60 days from the date the appeal is filed.
L. Within 30 days after the conclusion of a formal hearing, the Hearing Examiner
shall, based upon a preponderance of the evidence, prepare findings of fact, conclusions
of law, and his/her order. Copies of the Hearing Examiner's findings, conclusions and
order shall be forwarded by certified mail to the complaining party and the party
complained against at their last known addresses. A copy of the Hearing Examiner's
findings, conclusions and order shall also be provided to the City Council and placed on
the next regularly scheduled Council meeting agenda, for informational purposes only.
Additional copies of the findings, conclusions and order shall be forwarded to the
investigator, the City Attorney or the City Attorney's designee, and the person(s)
responsible for acting on the Hearing Examiner's order.
Section 6. TMC Section 2.97.060 is hereby established to read as follows:
2.97.060 Penalties for Noncompliance
Any Elected Official found, by a preponderance of the evidence, to have violated any
provision of this Code of Ethics may be subject to one or more of the following penalties by
majority vote of the Council:
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1. A cease and desist order as to violations of this Code of Ethics.
2. An order to disclose any reports or other documents or information
requested.
3. An order to pay to the City civil penalty of up to $1,000.00, where it is
determined disciplinary measures are not appropriate under the circumstances.
4. Exclusion from bidding on City contracts for a period of up to 5 years.
5. Termination or invalidation of contract(s) entered into in violation of the Code
of Ethics, but only if such contract(s) provide for termination in the event of a Code of
Ethics violation.
6. Admonition. An admonition shall be a verbal statement approved by the
City Council and made to the Elected Official by the Council President, or if the complaint
is against the Council President, then by the next most senior Councilmember. An
admonition under this section is not subject to further review or appeal except as may be
otherwise provided by law.
7. Reprimand. A reprimand shall be administered to the Elected Official by a
resolution of reprimand by the City Council. A reprimand under this section is not subject
to further review or appeal, except as may be otherwise provided by law.
8. Censure. A censure shall be a written statement administered personally to
the individual. The individual shall appear at a time and place directed by the Council to
receive such censure. Notice shall be given at least 20 days before the scheduled
appearance at which time a copy of the proposed censure shall be provided to the
individual. Within 5 days of receipt of the notice, the individual may file a request for
review of the content of the proposed censure with the City Council. Such a request will
stay the administration of the censure. The City Council shall review the proposed censure
in light of the investigator's findings of fact and the request for review, and may take
whatever action appears appropriate under the circumstances. The action of the Council
shall be final and not subject to further review. If no such request is received, the censure
shall be administered at the time and place set. It shall be given publicly, and the individual
shall not make any statement in support of or in opposition to or in mitigation thereof. A
censure shall be deemed administered at the time it is scheduled whether or not the
individual appears as required.
Section 7. TMC Section 2.97.070 is hereby established to read as follows:
2.97.070 Where to Seek Review
A. Cease and Desist Order. If ordered to cease and desist violating this chapter,
the affected Elected Official may seek review by writ of review from the King County
Superior Court pursuant to RCW 7.16, or other appropriate legal action.
B. Public Disclosure. If ordered to disclose any documents or papers pursuant to
this chapter, the affected Elected Official may seek review by writ of review from the King
County Superior Court pursuant to RCW 7.16, or other appropriate legal action.
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C. Civil Penalty. If ordered to pay a civil penalty, an appeal may be taken in the
form of a trial de novo in the Tukwila Municipal Court, which shall hear the case according
to the Civil Rules for Courts of Limited Jurisdiction and applicable local rules of the Tukwila
Municipal Court. This appeal shall be taken by filing in the Tukwila Municipal Court a
notice of appeal within 14 days of the date of the final written order. The person filing the
appeal shall also, within the same 14 days, serve a copy of the notice of appeal on the
person who issued the final written order and the City Attorney, or his/her designee, and
file an acknowledgment or affidavit of service in the Tukwila Municipal Court.
D. Exclusion from Public Bidding. If ordered to be excluded from bidding on
public contracts and the exclusion actually occurs, the Elected Official excluded may
seek whatever remedies exist at law or in equity.
E. Termination of Contract(s). If termination of contract(s) is ordered, the
person whose contract(s) was/were terminated may seek whatever remedies exist at
law or in equity.
Section 8. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section/subsection numbering.
Section 9. 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 10. 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 , 2014.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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Option 2
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING A CODE OF ETHICS
FOR ELECTED OFFICIALS, TO BE CODIFIED AT TUKWILA
MUNICIPAL CODE CHAPTER 2.97; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City of Tukwila wishes to provide uniform guidance to elected officials
on ethical issues; and
WHEREAS, State law prohibits certain conduct of City elected officials while serving
the City; and
WHEREAS, the City desires to provide for uniform investigation and adjudication of
ethics complaints;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Code of Ethics Established. A Code of Ethics for Elected Officials, to
be codified as Tukwila Municipal Code (TMC) Chapter 2.97, "Code of Ethics for Elected
Officials," is hereby established to read as follows:
CHAPTER 2.97
CODE OF ETHICS FOR ELECTED OFFICIALS
Sections:
2.97.010 Purpose
2.97.020 Definitions
2.97.030 Prohibited Conduct
2.97.040 Board of Ethics
2.97.050 Complaint Process
2.97.060 Penalties for Noncompliance
2.97.070 Where to Seek Review
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Section 2. TMC Section 2.97.010 is hereby established to read as follows:
2.97.010 Purpose
A. It is the policy of the City of Tukwila to uphold, promote and demand the highest
standard of ethics from all of its Elected Officials. Elected Officials shall maintain the
utmost standards of personal integrity, truthfulness, honesty and fairness in carrying out
their public duties; avoid any improprieties or material misrepresentations regarding their
roles or authority as public servants, including the appearance of impropriety as defined
herein; and never use their City positions or powers for improper personal gain.
B. It is the intention of the City Council that TMC Chapter 2.97 be liberally interpreted
to accomplish its purpose of protecting the public against decisions that are affected by
undue influence, conflicts of interest, or any other violation of this Code of Ethics. In
interpreting TMC Chapter 2.97, Elected Officials should be guided by common sense and
practicality. This Code of Ethics is supplemental to Washington state law, RCW Chapter
42.23.
Section 3. TMC Section 2.97.020 is hereby established to read as follows:
2.97.020 Definitions
As used in TMC Chapter 2.97, these words shall have the following meanings, unless the
context clearly indicates otherwise:
1. 'Appearance of impropriety" refers to a situation which to a reasonable
person without knowledge of the specific circumstances might seem to raise ethical
issues. An example of such conduct could be when a person regularly and reliably
collects money for his or her employer in his or her personal wallet and later gives it to his
or her employer. By putting it in his or her personal wallet, it may look improper and give
rise to suspicion.
2. "Adverse to the interests of the City" means taking action which could
damage or prejudice the interests of the City or its citizens.
3. "Business" means any corporation, partnership, sole proprietorship, firm,
enterprise, franchise, association, organization, self-employed individual, consultant,
holding company, joint stock company, receivership, trust, or any legal entity organized for
profit.
4. "Elected Official" means every individual elected to an office or position with
the City.
5. "Compensation" means payment in any form for real or personal property or
services of any kind.
6. "Gift" means a voluntary transfer of real or personal property of any kind or
the voluntary rendition of services of any kind without consideration of equal or greater
value, but not including any reasonable hosting expenses, including travel, entertainment,
meal, and refreshment expenses incurred in connection with appearances, ceremonies,
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and occasions reasonably related to official City business, or where otherwise permitted by
law.
7. "Hearing Examiner" shall mean the duly appointed and qualified Hearing
Examiner for the City of Tukwila, or his/her designee.
8. "Immediate family" shall mean spouses, dependents, anyone residing in the
person's household, and anyone within three generations by blood or marriage of the
person or the person's spouse (e.g., within three degrees of relationship by blood or
marriage).
9. "Person" means any individual, corporation, business or other entity, however
constituted, organized or designated.
Section 4. TMC Section 2.97.030 is hereby established to read as follows:
2.97.030 Prohibited Conduct
The following shall constitute violations of this Code of Ethics:
1. General Prohibition Against Conflicts of Interest. In order to avoid
becoming involved or implicated in a conflict of interest or impropriety, or an appearance of
conflict of interest or impropriety, no current Elected Official should be involved in any
activity that might be seen as conflicting with the conduct of official City business or as
adverse to the interests of the City. Even the appearance of the conduct prohibited in
TMC Section 2.97.030 alone may be sufficient to constitute a violation of this Code of
Ethics.
2. Beneficial Interests in Contracts Prohibited. No Elected Official shall
participate in his/her capacity as an Elected Official in the making of a contract in which
she/he has a financial interest, direct or indirect. This shall include any contract for sale,
lease or purchase, with or for the use of the City, or the acceptance directly or indirectly of
any compensation, gratuity or reward from any other person beneficially interested therein.
Provided, however, that this prohibition shall not apply where the Elected Official has only
a remote interest in the contract, and where the fact and extent of such interest is
disclosed and noted in the official minutes or similar records of the City prior to formation of
the contract, and thereafter the governing body authorizes, approves or ratifies the
contract in good faith, by a vote of its membership sufficient for the purpose without
counting the vote(s) of the official(s) having the remote interest. For purposes of this TMC
Chapter 2.97, a "remote interest" means:
a. That of a non-salaried officer of a nonprofit corporation;
b. That of an employee or agent of a contracting party where the
compensation of such employee or agent consists entirely of fixed wages or salary;
c. That of a landlord or tenant of a contracting party; or
d. That of a holder of less than one percent of the shares of a corporation, a
limited liability company, or other entity, which is a contracting party.
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3. Beneficial Influence in Contract Selection Prohibited. No Elected Official
shall influence the City's selection of, or its conduct of business with, a corporation, person
or firm having or proposing to do business with the City if the Elected Official has a
financial interest in or with the corporation, person or firm, unless such interest is a remote
interest and where the fact and extent of such interest is disclosed and noted in the official
minutes or similar records of the City prior to formation of the contract.
4. Representation of Private Person at City Proceeding Prohibited. No
Elected Official shall appear on behalf of a private person, other than him/herself or an
immediate family member, or except as a witness under subpoena, before any regulatory
governmental agency or court of law in an action or proceeding to which the City or an
Elected Official in an official capacity is a party, or accept a retainer or compensation that
is contingent upon a specific action by the City.
5. Certain Private Employment Prohibited. No Elected Official shall engage
in or accept private employment from — or render services for — any private interest, when
such employment or service is incompatible with the proper discharge of official duties or
would tend to impair independence of judgment or action in the performance of official
duties.
6. Beneficial Interest in Legislation Prohibited. No Elected Official, in
appearing before the City Council or when giving an official opinion before the City
Council, shall have a financial interest in any legislation coming before the City Council or
participate in any discussion with or give an official opinion to the City Council, unless such
interest is a remote interest and where the fact and extent of such interest is disclosed and
noted on the record of the Council or similar records of the City, prior to consideration of
the legislation by the City Council.
7. Disclosure of Confidential Information Prohibited. No Elected Official
shall disclose or use any confidential, privileged or proprietary information, gained by
reason of his/her official position, for a purpose which is other than a City purpose;
provided, however, that nothing shall prohibit the disclosure or use of information which is
a matter of public knowledge, or which is available to the public upon request.
8. Improper Use of Position Prohibited. No Elected Official shall knowingly
use his/her office or position to secure personal benefit, gain or profit, or use his/her
position to secure special privileges or exceptions for him/herself, or for the benefit, gain or
profits of any other persons.
9. Improper Use of City Personnel Prohibited. No Elected Official shall
employ or use any person under the Elected Official's official control or direction for the
personal benefit, gain or profit of the Elected Official or another. This section does not
apply to off-duty employment relationships, which are mutually negotiated.
10. Improper Use of City Property Prohibited. No Elected Official shall use
City owned vehicles, equipment, materials, money or property for personal or private
convenience or profit. Such use is restricted to those services which are available to the
public generally, for the authorized conduct of official City business, and for such purposes
and under such conditions as are approved by administrative order of the Mayor or
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Council; provided, however, that the use of a City vehicle by an Elected Official
participating in a carpooling program established by the City, and for a purpose authorized
under such program, shall not be considered a violation of TMC Chapter 2.97 or any other
provision of the Tukwila Municipal Code.
11. Acceptance of Compensation, Gifts, Favors, Rewards or Gratuity
Prohibited. No Elected Official may, directly or indirectly, give or receive, or agree to give
or receive, any compensation, gift, favor, reward or gratuity, for a matter connected with or
related to the Elected Official's services with the City of Tukwila; provided, however, that
this prohibition shall not apply to:
a. Attendance by an Elected Official at a hosted meal when it is provided in
conjunction with a meeting directly related to the conduct of City business, or where official
attendance by the Elected Official as a City representative is appropriate;
b. An award publicly presented in recognition of public service; or
c. Any gift valued at $100.00 or less, which gift cannot reasonably be
presumed to influence the vote, action or judgment of the Elected Official, or be
considered as part of a reward for action or inaction.
12. Impermissible Conduct After Leaving City Service.
a. Disclosure of Privileged, Confidential, or Proprietary Information
Prohibited. No former Elected Official shall disclose or use any privileged, confidential or
proprietary information gained because of his/her City position.
b. Participation in City Matters Prohibited. No former Elected Official shall,
during the period of one year after leaving City office:
(1) Assist any person in matters involving the City if, while in the course
of duty with the City, the former Elected Official was officially involved in the matter, or
personally and substantially participated in the matter, or acted on the matter; or
(2) Participate as or with a bidder, vendor or consultant in any
competitive selection process for a City contract in which he/she assisted the City in
determining the project or work to be done, or the process to be used.
Section 5. TMC Section 2.97.040 is hereby established to read as follows:
2.97.040 Board of Ethics
A. There is created a Board of Ethics for the City of Tukwila. The purpose of this
Board of Ethics is to review ethics complaints for an initial determination of sufficiency
before an investigation is initiated and to provide advisory opinions when requested.
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B. The Board of Ethics shall be composed of five members and shall be comprised
of the Chairsone member from each of the City's five standing Commissions: the Planning
Commission, the Arts Commission, the Park Commission, the Equity and Diversity
Commission and the Civil Service Commission: the Chair or designee. Should the chair of
any commission be unable or unwilling to serve on the Board of Ethics, the
member of the Commission shall select a member to serve on the Board.
C. The Chair of the Board shall be elected by the Board members and shall serve as
Chair for one year, at which time a new election shall occur.
D. A majority of the Board of Ethics shall constitute a quorum. The Board shall meet
as frequently as it deems necessary and in accordance with the provisions of the Tukwila
Municipal Code. The Board shall adopt procedures consistent with the provisions of the
Tukwila Municipal Code governing the conduct of its meetings. The Board shall be
supported by outside counsel.
E. The powers of the Ethics Board include rendering sufficiency determinations as
described in TMC Section 2.97.050 and responding to requests from City-elected officials
for advisory opinions regarding the application of the Code of Ethics to the prospective
conduct of such person.
2.97.050 Complaint Process
A. A complaint that this Code of Ethics has been violated may be filed with any one
of the following officers, or his/her designee(s):
1. Mayor; or
2. City Attorney
B. No person shall knowingly file a false complaint or report of violation of this Code
of Ethics.
C. Any individual receiving a complaint that this Code of Ethics has been violated
has an obligation to promptly forward the complaint, in writing, to the Board of Ethics for a
sufficiency determination. After reviewing the complaint, the Board may take any of the
following actions and inform the complainant, the respondent and the City Attorney or
Mayor, as appropriate:
1. Determine that the facts stated in the complaint, even if true, would not
constitute a violation of the Code of Ethics.
2. Determine that the facts stated in the complaint, even if true, would not
constitute a material violation of the Code of Ethics because any potential violation was
inadvertent or minor or has been adequately cured, such that further proceedings on the
complaint would not serve the purposes of the Code of Ethics.
3. Make a preliminary determination that the facts stated in the complaint, if
true, could potentially constitute a violation of the Code of Ethics such that further
proceedings are warranted.
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D. The Board shall submit a written report with its findings within 10 days of its
receipt of the written complaint. The Board's determination of sufficiency is final and
binding and no appeal is available. If the Board finds the complaint sufficient, then the
complaint shall be investigated as set forth below.
E. For all sufficient complaints, the City Attorney shall promptly designate an
individual to conduct an investigation of the complaint and shall forward a confidential
memorandum to all Councilmembers informing them that a complaint has been made.
F. The individual designated to conduct the investigation shall notify the subject of
the complaint that a complaint has been made. The designated investigator shall then
complete the investigation and prepare written findings of fact within 60 days of the date
the complaint is deemed sufficient, unless an extension is granted in writing by the City
Attorney. A copy of the written investigation findings of fact shall be provided to the City
Attorney.
G. Within 5 business days of receipt of the investigator's written findings, the City
Attorney shall forward a copy of the investigation to the Council President. Copies of the
investigation shall be forwarded by certified mail to the complaining party and the party
complained against at their last known addresses.
H. The investigative findings shall be placed on the next regularly scheduled Council
meeting agenda for discussion and disposition pursuant to TMC Section 2.97.060, by
majority vote of the Council.
I. The party complained against may, within 10 business days following the date of
a recommended disposition that finds a violation of this Code of Ethics, request a formal
hearing before the Hearing Examiner. A request for a formal hearing shall be in writing.
Except for good cause shown, the hearing shall be scheduled to take place not sooner
than 20 days nor later than 60 days from the date the appeal is filed.
J. Within 30 days after the conclusion of a formal hearing, the Hearing Examiner
shall, based upon a preponderance of the evidence, prepare findings of fact, conclusions
of law, and his/her order. Copies of the Hearing Examiner's findings, conclusions and
order shall be forwarded by certified mail to the complaining party and the party
complained against at their last known addresses. A copy of the Hearing Examiner's
findings, conclusions and order shall also be provided to the City Council and placed on
the next regularly scheduled Council meeting agenda, for informational purposes only.
Additional copies of the findings, conclusions and order shall be forwarded to the
investigator, the City Attorney or the City Attorney's designee, and the person(s)
responsible for acting on the Hearing Examiner's order.
Section 6. TMC Section 2.97.060 is hereby established to read as follows:
2.97.060 Penalties for Noncompliance
Any Elected Official found, by a preponderance of the evidence, to have violated any
provision of this Code of Ethics may be subject to one or more of the following penalties by
majority vote of the Council:
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1. A cease and desist order as to violations of this Code of Ethics.
2. An order to disclose any reports or other documents or information
requested.
3. An order to pay to the City civil penalty of up to $1,000.00, where it is
determined disciplinary measures are not appropriate under the circumstances.
4. Exclusion from bidding on City contracts for a period of up to 5 years.
5. Termination or invalidation of contract(s) entered into in violation of the Code
of Ethics, but only if such contract(s) provide for termination in the event of a Code of
Ethics violation.
6. Admonition. An admonition shall be a verbal statement approved by the
City Council and made to the Elected Official by the Council President, or if the complaint
is against the Council President, then by the next most senior Councilmember. An
admonition under this section is not subject to further review or appeal except as may be
otherwise provided by law.
7. Reprimand. A reprimand shall be administered to the Elected Official by a
resolution of reprimand by the City Council. A reprimand under this section is not subject
to further review or appeal, except as may be otherwise provided by law.
8. Censure. A censure shall be a written statement administered personally to
the individual. The individual shall appear at a time and place directed by the Council to
receive such censure. Notice shall be given at least 20 days before the scheduled
appearance at which time a copy of the proposed censure shall be provided to the
individual. Within 5 days of receipt of the notice, the individual may file a request for
review of the content of the proposed censure with the City Council. Such a request will
stay the administration of the censure. The City Council shall review the proposed censure
in light of the investigator's findings of fact and the request for review, and may take
whatever action appears appropriate under the circumstances. The action of the Council
shall be final and not subject to further review. If no such request is received, the censure
shall be administered at the time and place set. It shall be given publicly, and the individual
shall not make any statement in support of or in opposition to or in mitigation thereof. A
censure shall be deemed administered at the time it is scheduled whether or not the
individual appears as required.
Section 7. TMC Section 2.97.070 is hereby established to read as follows:
2.97.070 Where to Seek Review
A. Cease and Desist Order. If ordered to cease and desist violating this chapter,
the affected Elected Official may seek review by writ of review from the King County
Superior Court pursuant to RCW 7.16, or other appropriate legal action.
B. Public Disclosure. If ordered to disclose any documents or papers pursuant to
this chapter, the affected Elected Official may seek review by writ of review from the King
County Superior Court pursuant to RCW 7.16, or other appropriate legal action.
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C. Civil Penalty. If ordered to pay a civil penalty, an appeal may be taken in the
form of a trial de novo in the Tukwila Municipal Court, which shall hear the case according
to the Civil Rules for Courts of Limited Jurisdiction and applicable local rules of the Tukwila
Municipal Court. This appeal shall be taken by filing in the Tukwila Municipal Court a
notice of appeal within 14 days of the date of the final written order. The person filing the
appeal shall also, within the same 14 days, serve a copy of the notice of appeal on the
person who issued the final written order and the City Attorney, or his/her designee, and
file an acknowledgment or affidavit of service in the Tukwila Municipal Court.
D. Exclusion from Public Bidding. If ordered to be excluded from bidding on
public contracts and the exclusion actually occurs, the Elected Official excluded may
seek whatever remedies exist at law or in equity.
E. Termination of Contract(s). If termination of contract(s) is ordered, the
person whose contract(s) was/were terminated may seek whatever remedies exist at
law or in equity.
Section 8. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section/subsection numbering.
Section 9. 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 10. 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 , 2014.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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AMENDS 2.95 TO NO LONGER APPLY TO
ELECTED OFFICIALS
AFT
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NOS.
2127 AND 2068, AS CODIFIED AT TUKWILA MUNICIPAL
CODE CHAPTER 2.95, "CODE OF ETHICS," TO CHANGE THE
TITLE TO "CODE OF ETHICS FOR EMPLOYEES AND
APPOINTED OFFICIALS" AND TO REMOVE ELECTED
OFFICIALS FROM THE ETHICS PROCESS USED FOR
EMPLOYEES AND APPOINTED OFFICIALS; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City adopted a Code of Ethics by Ordinance No. 2068 on November
15, 2004 and amended the same by Ordinance No. 2127 on August 7, 2006; and
WHEREAS, the City Council has established a separate chapter of the Tukwila
Municipal Code relating to a Code of Ethics for Elected Officials, thereby requiring
amendments to the current Code of Ethics codified in Tukwila Municipal Code Chapter
2.95;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Title of Tukwila Municipal Code (TMC) Chapter 2.95 Amended.
Ordinance Nos. 2127 and 2068, as codified at TMC Chapter 2.95, "Code of Ethics," are
hereby amended to change the title of TMC Chapter 2.95 to "Code of Ethics for
Employees and Appointed Officials."
Section 2. TMC Section 2.95.010 Amended. Ordinance Nos. 2127 §1 and 2068
§1 (part), as codified at TMC Section 2.95.010, "Purpose," are hereby amended to read
as follows:
2.95.010 Purpose
A. It is the policy of the City of Tukwila to uphold, promote and demand the highest
standard of ethics from all of its employees and appointed officials, whether elected,
appointed -er- hired. City officers and employees shall maintain the utmost standards of
personal integrity, truthfulness, honesty and fairness in carrying out their public duties; they
shall avoid any improprieties in their roles as public servants, including the appearance of
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impropriety; and they shall never use their City positions or powers for improper personal
gain
B. It is the intention of the City Council that TMC Chapter 2.95 be liberally interpreted
to accomplish its purpose of protecting the public against decisions that are affected by
undue influence, conflicts of interest, or any other violation of this Code of Ethics. In
interpreting TMC Chapter 2.95, City officers and employees should be guided by common
sense and practicality. This Code of Ethics is supplemental to Washington State law,
RCW 42.23.
Section 3. TMC Section 2.95.020 Amended. Ordinance No. 2068 §1 (part), as
codified at TMC Section 2.95.020, "Definitions," is hereby amended to read as follows:
2.95.020 Definitions
As used in TMC Chapter 2.95, these words shall have the following meanings, unless
the context clearly indicates otherwise:
1. "Business" means any corporation, partnership, sole proprietorship, firm,
enterprise, franchise, association, organization, self - employed individual, consultant,
holding company, joint stock company, receivership, trust, or any legal entity organized for
profit.
2. "City officer or employee" means every individual elected, appointed, hired, or
otherwise selected to an office or position with the City, or any subdivision thereof, whether
such individual is paid or unpaid.
3. "Compensation" means payment in any form, for real or personal property or
services of any kind.
4. "Gift" means a voluntary transfer of real or personal property of any kind, or
the voluntary rendition of services of any kind, without consideration of equal or greater
value, but not including any reasonable hosting, including travel - expenses, entertainment,
meals, or refreshments expenses incurred furnished in connection with appearances,
ceremonies, and occasions reasonably related to official City business, where otherwise
permitted by law.
5. "Hearing Examiner" shall mean the duly appointed and qualified Hearing
Examiner for the City of Tukwila, or his /her designee.
6. "Immediate family" shall mean spouses, dependents, anyone residing in the
person's household, and anyone within three generations by blood or marriage of the
person or the person's spouse; fe.g., within three degrees of relationship by blood or
marriage).
7. "Person" means any individual, er-corporation, business or other entity,
however constituted, organized or designated.
Section 4. TMC Section 2.95.030 Amended. Ordinance Nos. 2127 §2 and 2068
§1 (part), as codified at TMC Section 2.95.030, "Prohibited Conduct," are hereby
amended to read as follows:
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2.95.030 Prohibited Conduct
The following shall constitute violations of this Code of Ethics:
1. General Prohibition Against Conflicts of Interest. In order to avoid
becoming involved or implicated in a conflict of interest or impropriety, or an appearance of
conflict of interest or impropriety, no current City officer or employee should be involved in
any activity that might be seen as conflicting with the conduct of official City business or as
adverse to the interests of the City. Even the appearance of the conduct prohibited in
TMC Section 2.95.030 alone may be sufficient to constitute a violation of this Code of
Ethics.
2. Beneficial Interests in Contracts Prohibited. No City officer or employee
shall participate in his /her capacity as a City officer or employee in the making of a contract
in which she /he has a financial interest, direct or indirect. This shall include any contract
for sale, lease or purchase, with or for the use of the City, or the acceptance directly or
indirectly of any compensation, gratuity or reward from any other person beneficially
interested therein. Except, that this prohibition shall not apply where the City officer or
employee has only a remote interest in the contract, and where the fact and extent of such
interest is disclosed and noted in the official minutes or similar records of the City prior to
formation of the contract, and thereafter the governing body authorizes, approves or
ratifies the contract in good faith, by a vote of its membership sufficient for the purpose
without counting the vote(s) of the officer(s) having the remote interest. For purposes of
TMC Chapter 2.95, a "remote interest" means:
a. That of a non - salaried officer of a nonprofit corporation;
b. That of an employee or agent of a contracting party where the
compensation of such employee or agent consists entirely of fixed wages or salary;
c. That of a landlord or tenant of a contracting party; or
d. That of a holder of less than one percent of the shares of a corporation, a
limited liability company, or other entity, which is a contracting party.
3. Beneficial Influence in Contract Selection Prohibited. No City officer or
employee shall influence the City's selection of, or its conduct of business with, a
corporation, person or firm having or proposing to do business with the City, if the City
officer or employee has a financial interest in or with the corporation, person or firm, unless
such interest is a remote interest and where the fact and extent of such interest is
disclosed and noted in the official minutes or similar records of the City prior to formation of
the contract, as defined in TMC 8.24.020.
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4. Representation of Private Person at City Proceeding Prohibited. No City
officer or employee shall appear on behalf of a private person, other than him /herself or an
immediate family member, or except as a witness under subpoena, before any regulatory
governmental agency or court of law in an action or proceeding to which the City or a City
officer in an official capacity is a party, or accept a retainer or compensation that is
contingent upon a specific action by the City. This provision shall not preclude an
employee from exercising rights protected by the Public Employees Collective Bargaining
Act, including the right to appear and /or testify in a legal proceeding on behalf of a labor
organization representing employees or seeking to represent employees of the City.
5. Certain Private Employment Prohibited. No City officer or employee shall
engage in or accept private employment from—or render services for —any private
interest, when such employment or service is incompatible with the proper discharge of
official duties or would tend to impair independence of judgment or action in the
performance of official duties. This provision shall not interfere with an employee's right to
engage in off duty employment that is authorized pursuant to a collective bargaining
agreement and /or Tukwila Police Department General Orders.
6. Beneficial Interest in Legislation Prohibited. No City officer or employee,
in appearing before the City Council or when giving an official opinion before the City
Council, shall have a financial interest in any legislation coming before the City Council or
participate in discussion with or give an official opinion to the City Council, unless such
interest is a remote interest and where the fact and extent of such interest is disclosed and
noted on the record of the Council or similar records of the City, prior to consideration of
the legislation by the City Council.
7. Disclosure of Confidential Information Prohibited. No City officer or
employee shall disclose or use any confidential, privileged or proprietary information,
gained by reason of his /her official position, for a purpose which is other than a City
purpose; provided, that nothing shall prohibit the disclosure or use of information which is
a matter of public knowledge, or which is available to the public upon request. This
provision shall not preclude an employee from exercising rights protected by the Public
Employees Collective Bargaining Act, including the right of a labor organization to utilize
and disclose properly obtained information that the City deems confidential, privileged, or
proprietary.
8. Improper Use of Position Prohibited. No City officer or employee shall
knowingly use his /her office or position to secure personal benefit, gain or profit, or use
his /her position to secure special privileges or exceptions for him /herself, or for the benefit,
gain or profit of any other persons. This provision shall not preclude an employee from
exercising rights protected by the Public Employees Collective Bargaining Act, including
the right to negotiate agreements that address the wages, hours, and working conditions
of employees of the City.
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9. Improper Use of City Personnel Prohibited. No City officer or employee
shall employ or use any person under the officer's or employee's official control or
direction for the personal benefit, gain or profit of the officer or employee, or another. This
section does not apply to off -duty employment relationships, which are mutually
negotiated.
10. Improper Use of City Property Prohibited. No City officer or employee
shall use City owned vehicles, equipment, materials, money or property for personal or
private convenience or profit. Use is restricted to such services as are available to the
public generally, for the authorized conduct of official City business, and for such purposes
and under such conditions as are approved by administrative order of the Mayor; provided,
the use of a City vehicle by a City officer or employee participating in a carpooling program
established by the City, and for a purpose authorized under such program, shall not be
considered a violation of TMC Chapter 2.95 or of any other provision of the TMC Tukwila
Municipal Code.
11. Acceptance of Compensation, Gifts, Favors, Rewards or Gratuity
Prohibited. No City officer or employee may, directly or indirectly, give or receive, or
agree to give or receive, any compensation, gift, favor, reward or gratuity, for a matter
connected with or related to the officer's or employee's services with the City of Tukwila;
except this prohibition shall not apply to:
a. Attendance of a City officer or employee at a hosted meal when it is
provided in conjunction with a meeting directly related to the conduct of City business, or
where official attendance by the officer or employee as a City representative is
appropriate;
b. An award publicly presented in recognition of public service; Of
c. Any gift valued at $100.00 or less, which cannot reasonably be
presumed to influence the vote, action or judgment of the officer or employee, or be
considered as part of a reward for action or inaction -. or
d. An employee serving as a representative of a labor organization and /or
an employee receiving compensation, gifts, or rewards from a labor organization of which
he /she is a member.
12. Impermissible Conduct After Leaving City Service.
a. Disclosure of Privileged, Confidential, or Proprietary Information
Prohibited. No former officer or employee shall disclose or use any privileged, confidential
or proprietary information gained because of his /her City employment.
b. Participation in City Matters Prohibited. No former officer or employee
shall, during the period of one year after leaving City office or employment:
(1) Assist any person in matters involving the City if, while in the course
of duty with the City, the former officer or employee was officially involved in the matter, or
personally and substantially participated in the matter, or acted on the matter;
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(2) Represent any person as an advocate in any matter in which the
former officer or employee was involved while a City officer or employee; or
(3) Participate as or with a bidder, vendor or consultant in any
competitive selection process for a City contract in which s /he assisted the City in
determining the project or work to be done, or the process to be used.
c. Duty to Inform. Whenever a City officer or employee wishes to contract
with a former City officer or employee for expert or consultant services within one year of
the latter's leaving City service, advance notice shall be given to the Mayor about the
proposed agreement.
d. Exceptions. The prohibitions of TMC Section 2.95.030, paragraphs
12.b(1) and (2), shall not apply to a former officer or employee acting on behalf of a
governmental agency, unless such assistance or representation is adverse to the interest
of the City.
Section 5. TMC Section 2.95.040 Amended. Ordinance Nos. 2127 §3 and 2068
§1 (part), as codified at TMC Section 2.95.040, "Complaint Process," are hereby
amended to read as follows:
2.95.040 Complaint Process
A. A complaint that this Code of Ethics has been violated may be filed with any one
of the following officers, or his /her designee(s):
1. Mayor; or
2. City Attorney.
B. No person shall knowingly file a false complaint or report of violation of this Code
of Ethics.
C. Any individual receiving a complaint that this Code of Ethics has been violated
has an obligation to promptly forward the complaint, in writing, to the Mayor. The Mayor
shall promptly designate an individual to conduct an investigation of the complaint.
However, if the complaint alleges that the Mayor violated this Code of Ethics, then the
individual receiving the complaint has an obligation to promptly forward the complaint, in
writing, to the City Attorney, who shall designate an individual to conduct an investigation.
D. Upon receipt of a complaint regarding an elected official or an appointed
member, the City Attorney shall forward a confidential memorandum to all
D. The individual designated to conduct the investigation shall notify the subject of
the complaint that a complaint has been made. The designated investigator shall ;then
complete the investigation and prepare written findings and conclusions within 60 days of
the date the complaint is received by the Mayor or City Attorney, unless an extension is
granted in writing by the Mayor. a. • e - - . ... e: -. A copy of the written
investigation findings and conclusions shall be provided to the Mayor. or City 4ttorne„ as
appropriate.
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E. Within 5 business days of receipt of the investigator's written findings and
conclusions, the Mayor or City Attorney, as appropriate, shall prepare a written
recommended disposition of the complaint. Copies of the recommended disposition and
the investigation findings and conclusions shall be forwarded by certified mail to the
complaining party and the party complained against at their last known addresses.
Additional copies of the recommended disposition shall be forwarded to the investigator,
the City Attorney or the City Attorney's designee, and the person(s) responsible for acting
on the recommended disposition. The recommended disposition shall not be
implemented until the time for requesting a formal hearing, pursuant to TMC Section
2.95.040(14G), has lapsed and no such hearing has been requested.
GF. When the complaint is against an elected—official—Of appointed board or
commission member, the investigative findings and conclusions as discussed in TMC
Section 2.95.040(E), as well as the recommended disposition, shall be placed on the
next regularly scheduled Council meeting agenda, for informational purposes only.
HG. The party complained against may, within 10 business days following the date of
athe recommended disposition, which that finds a violation of this Code of Ethics, request
in-writing--a formal hearing before the Hearing Examiner. A request for a formal hearing
shall be in writing. Except for good cause shown, the hearing shall be scheduled to take
place not sooner than 20 days nor later than 60 days from the date the appeal is filed.
WI. Within 30 days after the conclusion of the a formal hearing, the Hearing Examiner
shall, based upon a preponderance of the evidence, prepare findings of fact, conclusions
of law, and his /her order. Copies of the Hearing Examiner's findings, conclusions and
order shall be forwarded by certified mail to the complaining party and the party
complained against at their last known addresses. Additional copies of the findings,
conclusions and order shall be forwarded to the investigator, the City Attorney or the City
Attorney's designee, and the person(s) responsible for acting on the Hearing Examiner's
order. In the case of a complaint against an elected official or appointed board or
commission member, the Hearing Examiner's findings wig-shall be forwarded to the City
Council and placed on the next regularly scheduled Council meeting agenda, for
informational purposes only.
Section 6. TMC Section 2.95.050 Amended. Ordinance Nos. 2127 §4 and 2068
§1 (part), as codified at TMC Section 2.95.050, "Penalties for Noncompliance," are
hereby amended to read as follows:
2.95.050 Penalties for Noncompliance
A. Any person, other than an employee covered by a collective bargaining
agreement, found by a preponderance of the evidence to have violated any provision of
this Code of Ethics; may be subject toany combination one or more of the following
penalties:
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1. A cease and desist order as to violations of this Code of Ethics;
2. An order to disclose any reports or other documents or information requested
by the Mayor_,
violated any provision of the Code;
3. An order to pay to the City a civil penalty of up to $1,000.00, where it is
determined disciplinary measures are not appropriate under the circumstances;
4. Discipline, up to and including termination or removal from any position
whether paid or unpaid, eluding elected positions, only after notice and hearing as
provided by law. The pre - disciplinary procedures set forth in the provisions of the Tukwila
Municipal Code and applicable personnel policies shall be followed for regular employees
in the Classified City Service;
5. Exclusion from bidding on City contracts for a period of up to 5 years; and /or
6. Termination or invalidation of contract(s) entered into in violation of the Code
of Ethics, only if such contract(s) provide for termination in the event of a Code of Ethics
violation.
B. Any allegation that an employee who is covered by a collective bargaining
agreement has violated any provision of this Code of Ethics shall be investigated in
accordance with the applicable collective bargaining agreement and Department Policies,
Procedures, or General Orders. For any proven violation of this Code of Ethics, an
employee may be disciplined up to and including termination in accordance with the
applicable collective bargaining agreement. Any such discipline may be appealed in
accordance with the applicable collective bargaining agreement or Civil Service Rules.
Section 7. TMC Section 2.95.060 Amended. Ordinance No. 2068 §1 (part), as
codified at TMC Section 2.95.060, "Where to Seek Review," is hereby amended to read
as follows:
2.95.060 Where to Seek Review
A. Cease and Desist Order. If ordered to cease and desist violating this Code of
Ethics, an affected party may seek review by writ of review from the King County Superior
Court pursuant to RCW 7.16, or other appropriate legal action.
B. Public Disclosure. If ordered to disclose any documents or papers pursuant to
this Code of Ethics, an affected party may seek review by writ of review from the King
County Superior Court pursuant to RCW 7.16, or other appropriate legal action.
C. Civil Penalty. If ordered to pay a civil penalty, an appeal may be taken in the
form of a trial de novo in the Tukwila Municipal Court, which shall hear the case according
to the Civil Rules for Courts of Limited Jurisdiction and applicable local rules of the Tukwila
Municipal Court. This appeal shall be taken by filing in the Tukwila Municipal Court a
notice of appeal within 14 days of the date of the final written order. The person filing the
appeal shall also, within the same 14 days, serve a copy of the notice of appeal on the
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person who issued the final written order and the City Attorney, or his /her designee, and
file an acknowledgment or affidavit of service in the Tukwila Municipal Court.
D. Discipline or Removal. If an employee or officer is disciplined or removed from
office, then the person disciplined or removed from office may seek whatever remedies
may be available at law or in equity.
E. Exclusion from Public Bidding. If ordered to be excluded from bidding on
public contracts and the exclusion actually occurs, the person excluded may seek
whatever remedies exist at law or in equity.
F. Termination of Contract(s). If termination of contract(s) is ordered, the
person whose contract(s) was /were terminated may seek whatever remedies exist at
law or in equity.
Section 8. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section /subsection numbering.
Section 9. 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 10. 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 , 2014.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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