HomeMy WebLinkAboutFIN 2018-10-02 COMPLETE AGENDA PACKETCity of Tukwila
Finance Committee
• De'Sean Quinn, Chair
• Dennis Robertson
0 Kate Kruller
AGENDA
TUESDAY, OCTOBER 2, 2018 — 5:30 PM
HAZELNUT CONFERENCE ROOM
(At east entrance of City Hall)
Distribution:
D. Quinn
D. Robertson
K. Kruller
V. Seal
K. Hougardy
T. McLeod
Z. Idan
Mayor Ekberg
D. Cline
C. O'Flaherty
L. Humphrey
Item
Recommended Action
Page
1. PRESENTATION(S)
2. BUSINESS AGENDA
a. A contract for hazardous material abatement for the
a. Forward to 10/8 C.O.W. and
Pg.1
Public Safety Plan.
10/15 Regular Mtg.
Rachel Bianchi, Deputy City Administrator
b. A resolution authorizing the cancellation of abandoned
b. Forward to 10/15 Consent
Pg.9
or unclaimed property for the reporting on year 2018.
Agenda.
Cindy Wilkins, Fiscal Specialist
c. An ordinance amending business license regulations in
c. Forward to 10/8 C.O.W. and
Pg.15
Tukwila Municipal Code Title 5.
10/15 Regular Mtg.
Cindy Wilkins, Fiscal Specialist; and
Vicky Carlsen, Deputy Finance Director
d. A resolution regarding the compensation policy for
d. Forward to 10/8 C.O.W. and
Pg.31
City employees.
10/15 Regular Mtg.
David Cline, City Administrator
3. ANNOUNCEMENTS
4. MISCELLANEOUS
Next Scheduled Meeting: Tuesday, October 16, 2018
15. The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk(aTukwilaWA.gov) for assistance.
TO:
FROM:
CC:
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL E ORANDUIVI
Finance Committee
Rachel Bianchi, Deputy City Administrator
Mayor Ekberg
DATE: September 25, 2018
SUBJECT: Regulated Building Materials Consulting Services Contract
ISSUE
The Council is being asked to execute a contract to provide Regulated Building Materials
("Hazmat") consulting services for the Public Safety Plan.
BACKGROUND
The City of Tukwila identified the need for Regulated Building Materials consulting
services for the Tukwila Safety Plan, specifically the Justice Center and a review of the
existing Fire Station 54. These services allow the project to identify and safely dispose of
potentially hazardous materials in the existing buildings on the project site, in accordance
with regulatory requirements. These services are needed before demolishing buildings
associated with the Justice Center and to better understand the realities of a potential
remodel of Fire Station 54.
The City issued and advertised a Request for Proposals (RFP) inviting interested firms to
submit a proposal to provide the necessary consulting services for the project. Five firms
submitted proposals. The proposals were reviewed and evaluated by three reviewers
against the scoring criteria in the RFP. Based on their qualifications and proposed fee
estimate, NOVO Laboratory & Consulting Services, Inc. is the top -ranked firm and is
recommended for selection. The City has confirmed that NOVO Laboratory & Consulting
Services, Inc. is well qualified to conduct the work requested.
Because the proposed fee is an estimate, and will vary based on actual conditions of the
existing buildings, a 10% contingency has been added. While staff is requesting authority
for the 10% contingency, the contract is for a not to exceed amount of $58,855.
DISCUSSION
NOVO Laboratory & Consulting Services, Inc. will execute the City's standard agreement
for contract services to provide the services describes above.
FISCAL IMPACT
The cost estimate for the Regulated Building Materials consulting services is $64,740 and
is included in the projects budgets. The total amount will be allocated as follows:
Justice Center (estimated fee)
$47,855
Fire Station 54 (allowance)
$11,000
Contract Amount
$58,855
Contingency (10% of above)
$5,885
Total
$64,740
1
INFORMATIONAL MEMO
Page 2
RECOMMENDATION
Council is being asked to approve the building controls assessment services contract for
scope of work and associated fees described above and in Exhibit A and consider this item at
the October 8 Committee of the Whole meeting and subsequent October 15 Regular Meeting.
ATTACHMENTS
Proposed contract
2 W:12018 Info Memos\Hazmat Cons Memo.doc
City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Contract Number:
CONSULTANT AGREEMENT FOR
REGULATED BUILDING MATERIALS CONSULTING SERVICES
THIS AGREEMENT is entered into between the City of Tukwila, Washington, hereinafter
referred to as "the City", and NOVO Laboratory & Consulting Services, Inc., hereinafter referred to
as "the Consultant", in consideration of the mutual benefits, terms, and conditions hereinafter
specified.
1. Project Designation. The Consultant is retained by the City to perform regulated building
materials consulting services in connection with the project titled Public Safety Plan.
2. Scope of Services. The Consultant agrees to perform the services, identified on Exhibit "A"
attached hereto, including the provision of all labor, materials, equipment and supplies.
3. Duration of Agreement; Time for Performance. This Agreement shall be in full force and
effect for a period commencing upon
unless sooner terminated under the provisions hereinafter specified. Work under this
execution and ending at the end December 2020.
Agreement shall commence upon written notice by the City to the ConOlteAt,`to, proceed.
The Consultant shall perform all services and provide all work product required pursuant to
this Agreement no later than December 31,' 2020, unless an extension of such time is
granted in writing by the City.
rendered under this Areemeritas follows
A. Payment for the work provided by tehte'Consultant shall be made as provided on Exhibit
"A" within the proposal attached hereto, provided that the total amount of payment to the
Consultant shall not exceed $58,855 including the proposed $47,855 Ifor work
associated with the Justice Center and an allowance of 511,000 for the Fire Station 54
project, without express written modification of the Agreement signed by the City.
B. The Consultant may submit vouchers to the City once per month during the progress of
the work for partial payment for that portion of the project completed to date. Such
vouchers will be checked by the City and, upon approval thereof, payment shall be
made to the Consultant in the amount approved.
C. Final payment of any balance due the Consultant of the total contract price earned will
be made promptly upon its ascertainment and verification by the City after the
completion of the work under this Agreement and its acceptance by the City.
D. Payment as provided in this section shall be full compensation for work performed,
services rendered, and for all materials, supplies, equipment and incidentals necessary
to complete the work.
E. The Consultant's records and accounts pertaining to this Agreement are to be kept
available for inspection by representatives of the City and the state of Washington for a
period of three (3) years after final payments. Copies shall be made available upon
request.
3
5. Ownership and Use of Documents. All documents, dravvings, specifications and other
materials produced by the Consultant in connection with the services rendered under this
Agreement ahm|| be the property Of the City whether the project for which they are made is
executed or not. The Consultant shall be permitted to retain copieo, including reproducible
copi8e, of drawings and specifications for infornlotiUn, reference and use in connection with
the Consultant's endeavors. The Consultant ahoU not be responsible for any use of the said
docunnentS, dravvinga, specifications or other nloteho|a by the City on any project other than
the project specified |nthis Agreement.
O. Compliance with Laws. The Consultant sho||, in performing the services contemplated by
this /\gnaonnaOt, faithfully observe and comply with all federm|, state, and local |ovva.
ordinances and regulations, applicable to the services rendered under this Agreement.
7. Indemnification. The Consultant shall defend, indemnify and hold the City, its officera,
officio|o, employees and volunteers harmless from any and all C|ainne. injuries, damages,
losses or suits including attorney fees, arising out of or resulting from the aota, errors or
omissions of the Consultant in performance of this Agreernent, except for injuries and
damages caused bythe sole negligence ofthe City.
Should a court of competent jurisdiction determine that this Agreement is subject to RCVV
4.24.115.then, inthe event ofliability for damages arising out ofbodily injury tOpersons nr
dGrn@Qes to property caused by or resulting from the concurrent negligence of the
Consultant and the City, its officero, offida|o, employees, and volunteers, the Consultant's
liability hereunder oh8|| be only to the eX1eMf of the Consultant's negligence. It is further
specifically and expressly understood that the indemnification provided herein constitutes the
Consultant's waiver of i[nrnunib/ under Industrial Insurance, Title 51 FlCVV, solely for the
purposes of this indemnification. This waiver has been rnVtuG||y negotiated by the parties.
The provisions of this section shall survive the expiration or termination of this Agreement.
8. Insurance. The Consultant shall procure and maintain for the duration of the Agreemont,
insurance against c|oinna for injuries to persons or damage to property which may arise from
or in connection with the performance ofthe work hereunder by the COnsu|t8nt, its agents,
representatives, or employees. Consultant's maintenance of insurance as required by the
agreement shall not be construed to |i[nif the liability of the Consultant to the coverage
provided by such insUrance, or otherwise limit the City's recourse to any remedy available at
law o[inequity.
A. Minimum Amounts and Scope of Insurance. Consultant shall obtain insurance of the
types and with the limits described below:
1. /\UtODnObUe Liability insurance with a 0iOimU[O combined single limit for bodily
injury and property damage Of $1.000.000per accident. Automobile Liability
insurance ehsd| cover all ovxMed, non-ovVned, hired and leased vehicles.
Coverage shall be written on Insurance Services Office (|G{J) form C/\ OO 01 or
substitute form providing equivalent liability coverage. If neceseary, the policy
shall be endorsed toprovide .contractual liability coverage.
2. COn1n1e[[j@| G8Oe[8| Liability insurance with limits no less than $1,000.000eanh
occurrence, $2,000.000 general aggregate. {}Qn1nnercio| General Liability
insurance shall be written on |8{] occurrence form CG OD 01 and shall cover
liability arising from 9remises. OpeF8tlons, independent contractors and personal
injury and advertising injury. The City shall be named as an insured under the
Consultant's Commercial General Liability insurance policy with respect to the
work performed for the City.
3. Workers' Compensation coverage as required by the Industrial Insurance laws of
the State of Washington.
o*revised :1-2o3
4. Professional Liability with limits no less than $1.000i000 per C|@i0 and
$1.000,000 policy aggregate limit. Professional Liability insurance shall he
appropriate tothe Consultant's profession.
B. Other Insurance Provision. The Consultant's Automobile Liability and Commercial
General Liability insurance policies are to contain or be endorsed to contain that they
shall be primary insurance with respect to the City. Any Insurance, self-insurance, or
insurance pool coverage maintained by the City shall be excess of the Consultant's
insurance and shall not be contributed orcombined with it.
C. Acceptability of Insurers. Insurance is to be placed with insurers with m ournsndA.M.
Beet rating of not less than /\:V||.
D. Verification of Coverage. Consultant shall furnish the City with original certificates and
m copy of the amendatory endorsenneDto, including but not necessarily limited to the
additional insured endorgonnent, evidencing the insurance requirements of the
Consultant before commencement of the work. Certificates of coverage and
endorsements as required bythis section shall be delivered to the City within fifteen /15\
days 8fexecution ofthis Agreement.
E. Notice of Cancellation. The Consultant oh8|| provide the City with written notice of any
policy caOcel|@t|oO. within two business days of their receipt of such notice.
F. Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the
insurance as required shall constitute 8 material breach of contract, Upon which the City
may, after giving five business days notice to the Consultant to correct the breach,
immediately terminate the contract or, at its diecredion, procure orrenew such insurance
and pay any and all premiums in connection theceVvith. with any sums so expended to be
repaid to the City on dennend, or at the sole discretion of the Cif«. offset 'against funds
due the Consultant from the City.
B. Independent Contractor. The Consult ant and the City agree that the Consultant is an
independent contractor with respect to the services provided pursuant to this Agreement.
Nothing in this Agreement shall be considered to create the relationship Of employer and
employee between the parties hereto. Neither the Consultant nor any employee of the
Consultant shall beentitled toany benefits accorded City employees byvirtue ofthe services
provided under this Agreement. The City shall not be responsible for withholding or
otherwise deducting federal income tax or social security or for contributing to the state
industrial insurance proQrann. otherwise assuming the duties of an employer with respect to
the Consu|tant, or any employee of the Consultant.
10. Covenant AgainmtCxxntimqmntFees. The Consultant warrants that hehas not employed or
retained any company or peraon, other than a bnnafide employee working solely for the
Conou|tmnt, to solicit or secure this contract, and that he has not paid or agreed to pay any
company or person, other than g honafide employee working solely for the Consultant, any
fee, o&nlnniseiOn, percent3ge, brokerage fee, g|fte, or any other consideration contingent
upon or resulting from the award or making of this contract. For breach or violation of this
warrant, the City Sh8|| have the right to annul this contract without liability, UF in its discretion
to deduct from the contract price or coneideration, or otherwise recover, the full amount of
such fee, oonnnn|oeion, percentage, brokerage fee, gift, or contingent fee.
11. Discrimination Prohibited. The Conau|tant, with regard to the vVnrK performed by it under
this Agreement, will not discriminate on the grounds of race, [eUgiOD. creed, color, national
origin, oge, veteran etatuo, sex, sexual orientation, gender identity, marital otatue, political
affiliation or the presence of any disability in the selection and retention of employees or
procurement of materials or supplies.
Cxrevised `1-2U3
12, Asmsi.qnrnaot The Consultant ahoU not sublet or assign any of the services covered by this
Agreement without the express written consent of the City.
13. Non -Waiver. Waiver by the City of any provision of this Agreement or any time limitation
provided for inthis Agreement shall not constitute awaiver ofany other provision.
14. Termination.
A. The City reserves the right to terminate this Agreement at any time by QiViOQ ten (10)
days written notice tothe Consultant.
B. In the event ofthe death of rnennber, partner or officer of the [}onou|tant. Vrany of its
supervisory personnel assigned to the project, the surviving members of the Consultant
hereby agree to complete the work Under the terms of this /\onsomeOt. if requested to
do so by the City. This section oho|| not be o bar to renegotiations of this Agreement
between aUrv|Y|Mg rneMOUerS of the Consultant and the City, if the City so chooses.
15, Applicable Lmm/| Venue; AttorneV'a Fees' This Agreement shall be subject to, and the
Consultant shall at all times comply vvith, all applicable federal, 'state and local |avva,
regulations, and [U|eS, including the provisions of the City of Tukwila Municipal Code and
ordinances Ofthe City of Tukwila. In the event any suit, arbitration, or other proceeding is
instituted to enforce any term of this Agreernent, the parties specifically understand and
agree that venue shall be properly laid in King County, Washington. The prevailing party in
any such action shall he entitled toits adtorney'sfees and costs ofsuit. Venue for any action
wising from or related to this Agreement shall be exclusively in King County Superior Court.
16. Severabi|ityand Survival. |fany term, condition orprovision ofthis Agreement iedeclared
void or unenforceable or |innibsd in its application or effect, such event shall not affect any
other provisions hereof and all other provisions shall remain fully enforceable. The
provisions of this Agreement, which by their sense and context are naasOn@b|V intended to
survive the completion, expiration or cancellation of this Agreement, shall survive termination
ofthis Agreement.
17. Notices. Notices to the City of Tukwila shall bosent to the following address:
City Clerk
City QfTukwila
8200 SoOthceDt8rBou|8vond
Tukwila, WA 98188
Notices to Consultant shall be sent to the following address:
N{lVO Laboratory &Consulting San/icao'. Inc.
Attn: Richard Carlson
1388VV15411 Street
Burien,\8/ASR1OO
1O. Entire A_qreernent; Modification. This Aoreennent, together with attachments or addenda,
represents the entire and integrated Agreement between the City and the Consultant and
supersedes all prior negotiations, representations, or agreements written or oral. No
amendment or modification ofthis Agreement eho|| be of any force or effect unless it is in
writing and signed bythe parties.
Cxrevised :1-2013
DATED this
day of , 20
CITY OF TUKWILA CONSULTANT
Allan Ekberg, Mayor
Attest/Authenticated:
By:
Printed Name:
Title:
Approved as to Form:
City Clerk, Christy O'Flaherty Office of the City Attorney
CA revised: 1-2013
Page 5
7
8
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL EMORANDU
TO: Mayor Ekberg
Finance & Safety Committee
FROM: Vicky Carlsen, Deputy Finance Director
BY: Cindy Wilkins — Fiscal Specialist
DATE: October 2, 2018
SUBJECT: 2018 Reporting of Abandoned Property to the Washington State
Department of Revenue Unclaimed Property Section
ISSUE
Annual write-off of outstanding and unredeemed accounts payable and payroll claims.
BACKGROUND
Each year by November 1st, the City of Tukwila reports abandoned or unclaimed property that is
owed either to individuals or business vendors to the Washington State Department of Revenue
Unclaimed Property Section and removes these items from the accounting records. All local
governments are required to report unclaimed property except unclaimed restitution. Normal
restitution is then reported each year by the County Treasurer to the State Treasurer.
Current Finance Department policy dictates that all abandoned or unclaimed property be
reported annually to the Washington State Department of Revenue Unclaimed Property Section
through the Council approved resolution process.
DISCUSSION
For the 2018 unclaimed property report year, reporting of abandoned or unclaimed property
totals $5,227.73 comprised of General Fund Accounts, payable Claims checks, Payroll checks
and Court checks.
To the extent possible, those individuals and businesses with unclaimed accounts payable
claims and payroll checks have been notified by the City through "good faith effort of being
mailed due diligence letters. These individuals and businesses have either not responded to
the due diligence notifications and/or cannot be located in order to claim their property.
One of the largest contributors to Unclaimed Property are juror reimbursement checks. To help
reduce unclaimed property, a member from Finance is reimbursing jurors from a petty cash fund
in the courtroom prior to the start of the trial. Checks are no longer being issued for
reimbursement.
RECOMMENDATION
The Council is being asked to approve the Resolution declaring the cancellation of unclaimed
General Fund accounts payable claims and consider these items on the Consent Agenda at the
October 15, 2018 Regular Council Meeting.
ATTACHMENTS
Proposed Draft Resolution
2018 Unclaimed Property Summary Detail Report.
9
10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, AUTHORIZING THE CANCELLATION OF
OUTSTANDING GENERAL FUND CLAIMS AND PAYROLL CHECKS.
WHEREAS, the State of Washington, Department of Revenue Unclaimed Property
Section, for the reporting on year 2018, requires a one year dormancy period for
outstanding claims and payroll checks issued from the General Government Fund; and
WHEREAS, the City of Tukwila Finance Department has made all reasonable
attempts to resolve the outstanding, unredeemed General Fund claims; and
WHEREAS, the City Council of the City of Tukwila wishes to cancel all outstanding,
unclaimed General Fund claims and payroll checks issued prior to July 1, 2017
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
The Tukwila City Council authorizes the cancellation of General Fund and payroll
checks as detailed on Attachment A, the 2018 Unclaimed Property Summary Detail
Report.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of , 2018
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Attachment A: 2018 Unclaimed Property Summary Detail Report (07/01/2016 — 06/30/2017)
W:\Word Processing\Resolutions\Cancellation of outstanding claims and checks 9-19-18
CW:bjs Page 1 of 1 11
12
2018 Unclaimed Property, Reporting Period 07/01/2016 - 06/30/2017
ATTACHMENT A
Accounts Payable 1
Due
Diligence
Letter
Check
Number
Check 1Vendor #Nendor Name
Date
Description
Account Number
Check
Amount
Total
Amount
Status
372534
07/18/16 1017311 ART OF SHAVING
Bus Lic Refund
000.257.000
67.00
67.00
6/28/2018
No response
372569
07/18/16 1017316 ROBIN MUKHERJEE
Day Camp Refund
000.347.600.01.00
150.001 150.00
6/28/2018
No response
372733
08/01/16 1013945 LOREN SHOICHI TEMKIN
Piano Lessons Refund
000.07.571.200.41.01
504.00F 504.00
6/28/2018
7/2/18 returned in mail, return to sender
372735
08/01/16 1017372 ARANZA TORRES-SILVA
3rd Place Art Show Award
000.03.573.200.49.00
50.001 50.00
6/28/2018
No response
372854
08/15/16 1017381 AMAIRANI URIBE
Witness Fee
000.09.512.500.49.04
12.271 24.54
6/28/2018
No response
372854
08/15/16 1071381 AMAIRANI URIBE
Witness Fee
000.09. 2.500.49.04
12.271
6/28/2018
372972
09/06/16 1017440 MARVIN HERRERA
Witness Fee
000.09.512.500.49.04
26.631 26.63
6/28/2018
No response
373194
10/03/16 1017485 BAC TRAN
Utility 0/P 12252 46th Ave S
640.237.000
20.09
20.09
6/28/2018
No response
373337
10/24/16 1002813 DAVE JOHNSON
Travel -Johnson
000.07.571.205.43.00
5.28
5.28
6/28/2018
No response
373611
12/05/16 017610 ANGELA DANIELS
Witness Fee
000.09.512.500.49.04
24.521 24.52
6/28/2018
No response
373645
12/05/16 017611 JONALYN MAREHAM
Witness Fee
000.09.512.500.49.04
22.64] 22.64
6/28/2018
No response
373646
12/05/16 1017607 CONTERA MASON
Witness Fee
000.09.512.500.49.04
15.451 15.45
6/28/2018
713/18 returned in mail, return to sender
373654
12/05/16 1017367 GIANG NGUYEN
Perm Mtr Refund D16-0135
401.245.100/401.379.002.00.00
52.061 52.06
6/28/2018
No response
374087
02/06/17 1011120 SO OMON B. BERHANE
Interpreter Fee 1/25
000.09.512.500.41.03
80.00
80.00
6/28/2018
No response
374196
02/21/17 1017739 LWAN GHEBRISLASIE
Witness Fee 12/25
000.09.512.500.49.04
11.46
11.46
6/28/2018
No response
374205
02/21/17 1017737 LINDSEY JOHNNY
Witness Fee 12/25
000.09.512.500.49.04
11.821 11.82
6/28/2018
No response
374242
02/21/17 017735 GONZAO SANCHEZ
Witness Fee 12/25
000.09.512.500.49.04
11.501 11.50
6/28/2018
No response
374366
03/20/ 7 1017804 TULA BISWA
Witness Fee 2/22
000.09.512.500.49.04
12.141 12.14
6/28/2018
No response
374562
04/17/17 1017861 MABEL ARIAS ARGUELLO
Witness Fee 3/29
000.09.5 2.500.49.04
25.781 25.78
6/28/2018
No response
374570
04/17/17 1017863 LANESHA BROOKS
Witness Fee 3/29
000.09.512.500.49.04
90.251 90.25
6/28/2018
7/6/18 returned in mail, return to sender
374611
04/17/17 1013579 PING LAU
Interpreter Fee 4/3
000.09.512.500.41,03
110.001
110.001
220.00
6/28/2018
No response
374611
04/17/17 1013579 PING LAU
'Interpreter Fee 4/3
000.09.512.500.41.03
6/28/2018
No response
374650
04/17/17 1017676 RYAN VANCIL
05/01/17 1013579 PING LAU
Hearing Examiner Pro Tem
000.08.558.600.49.53
33.801 33.80
6/28/2018
No response
374715
Interpreter Fee 4/12
000.09.512.500.41.03
110.001 110.00
6/28/2018
No response
374789
05/15/17 1017930 LEO CASTILLO/Seattle Mental Health
Witness Fee 4/26
000.09.512.500.49.04
10.11 10.11
6/28/2018
7/9/18 returned in mail, return to sender
374796
05/15/17 1017927 ANTOINE DANIEL
Witness Fee 4/26
000.09.512.500.49.04
11.391 11.39
6/28/2018
No response
374807
05/15/17 '017928 DELANE HOLLSTEIN
Witness Fee 4/26
000.09.512.500.49.04
18.241 18.24
6/28/2018
No response
374820
05/15/17 017934 AUDRA KOKE
Ad Ath League Refund
000.347.600.08.00
17.001 17.00
6/28/2018
No response
374822
05/15/17 013579 PING LAU
Interpreter Fee 4/26
000.09.512.500.41.03
110.001 210.00
6/28/2018
No response
374822
05/15/17 1013579 PING LAU
Interpreter Fee 4/27
000.09.512.500.41.00
100.00
374825
05/15/17 ;017925 CHRISTIAN MARQUEZ-DIAZ
Witness Fee 4/26
000.09.512.500.49.04
14.60 14.60
6/28/2018
No response
374915
05/22/17 1017946 TRAN PHO
Utility 0/P SM#00-4000-0511
640.237.000
00.001 100.00
6/28/2018
No response
374990
06/05/17 1013579 PING LAU
Interpreter Fee 5/15
000.09.512.500.41.03
110.001 220.00
6/28/2018
No response
374990
06/05/17 1013579 PING LAU
Interpreter Fee 5/24
000.09.512.500.41.03
110.001
6/28/2018
No response
374992
06/05/17 1018016 CEDRICK LIESAM
Witness Fee 5/24
000.09.512.500.49.04
12.781 12.78
6/28/2018
7/9/18 returned in mail, return to sender
375000
06/05/17 1017958 OBDULIO MONTEPEQUE MORALES
Witness Fee 5/24
000.09.512.500.49.04
15.67 15.67
6/28/2018
7/9/18 returned in mail, return to sender
375006
06/05/17 1018017 MICHEL PEDERSEN
Witness Fee 5/24
000.09.512.500.49.04
26.591 26.59
6/28/2018
No response
375074
06/19/17 10101 2 FIRST AMERICAN TITLE INSURANCE
Utility 0/P NCS-844994-WA1
400.111.100
349.05 349.05
6/28/2018
No response
375099
06/19/17 1013579 PING LAU
Interpreter Fee 4/27
000.03.512.500.41.00
100.001 100.00
6/28/2018
No response
375111
06/19/17 1018034 NW BEST CPR
1Damage Deposit Refund
000.239.105
200.001 200.00
6/28/2018
9/7/18 returned in mail, return to sender
Total Checks:
2,874.3912,874.39
1
,
Paryoll
Check
Number
Check Vendor#Nendor Name Description
Date 1 IAmount
Account Number
Check 'Total
Amount
Status
532929
01/20/17 Monson, Ryan ''PAYROLL
52.501,
533091
03/20/17 MILLER, KYLE 'PAYROLL
26.64
533130
04/05/17 (;MILLER, KYLE ;PAYROLL
26.641
533167
04/20/17'MILLER, KYLE, PAYROLL
90.06i
532843
12/05/16 TUKWILA PANTRY PAYROLL DEDUCTION
72.50
533073
03/03/17 TUKWILA CHILDREN'S FOUNDATION PAYROLL DEDUCTION
10.00'
Total Checks:
278.34
Court
I
I
Check
Number
Check ;Vendor #Nendor Name 'Description
Date
Account Number
Check 'Total
Amount Amount
Status
12/22/14 IUMEADI, LICHENNA IFUNIANYA BAIL REFUND CR0065012
2,000.00'
11/10/15 'UNKNOWN VEHICLE VIOLATOR IUNCL MONEY IN0057474
47.001
10/28/15 ALI, AMINO AHMED I MISC TRUST IN0059360
12.00'
03/25/16 ;TAYLOR, ERIN DIANE 'OVER PAYMENT 6Z0402641
16.00
Total Checks:
2,075.00
UNCLAIMED PROPERTY:
TOTAL,
5,227.73
TO:
FROM:
City of Tukwila
I FOR ATIO AL E ORA DU
Finance Committee
Peggy McCarthy, Director of Finance
Allan Ekberg, Mayor
BY: Vicky Carlsen, Deputy Finance Director
CC: Mayor Ekberg
DATE: October 2, 2018
SUBJECT: Amend Title 5 Business Licenses and Regulations and adoption of
legislative required language and minimum threshold
ISSUE
In order to be compliant with Business Licenses Services (BLS), the city is required to adopt the
new model licensing ordinance that includes a minimum threshold to require a business be
licensed.
BACKGROUND
Engrossed House Bill 2005 passed unanimously in 2017. The bill, now codified as Chapter
35.90 RCW, requires any city with a general business license, to partner with a combined
licensing service. It has specific deadlines. If the City does not complete partnership with BLS or
another service, it may no longer issue business licenses after December 2022. The legislation
also includes a provision requiring cities, working with Association of Washington Cities, to
develop and implement a model licensing ordinance that includes a minimum income threshold
to require a business be licensed. The ordinance should be adopted by cities with business
licenses by January 1, 2019.
DISCUSSION
The city has agreed in principle to partner with BLS as part of the 2018-19 plan required by the
legislation. To proceed, Tukwila Municipal Code Title 5 needs to be amended with the model
licensing language and minimum threshold.
Summary of changes to the ordinance include:
• Added language to define the effective date/period for new language/process.
• Added required language from model ordinance defining "engaging in business".
• Added required language regarding $2,000 per year threshold for businesses that do not
have a location in the city.
• Combined language where duplicate.
• Added text to definition of employee "or reports from a location within the City's corporate
limits."
• Simplified language "an entity subject to exemption... need not pay a business license fee."
RECOMMENDATION
The Council is being asked to approve the ordinance, and consider this item at the October 8,
2018 Committee of the Whole meeting and subsequent October 15, 2018 Regular Meeting.
ATTACHMENTS
Draft ordinance
15
16
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING VARIOUS ORDINANCES
AS CODIFIED IN TUKWILA MUNICIPAL CODE CHAPTER 5.04,
"LICENSES GENERALLY," TO ADOPT MODEL BUSINESS
LICENSE LANGUAGE AS DIRECTED BY THE STATE;
REPEALING ORDINANCE NO. 2425; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, in 2017, the Washington State legislature adopted Engrossed House Bill
2005, which directed cities in Washington to adopt model business license language,
including a uniform definition of "engaging in business" and related issues; and
WHEREAS, in June 2018, at the direction of the legislature, the Association of
Washington Cities released draft model language, and staff prepared the requisite
amendments to Tukwila Municipal Code Chapter 5.04; and
WHEREAS, the City Council finds that in the interest of compliance with state law
and to improve the current licensing practice for the public and City staff, the City should
adopt the proposed amendments to its business licensure regulations; and
WHEREAS, the City Council has considered this ordinance, together with all public
comment, and has determined the proposed amendments are in accord with the
Comprehensive Plan; will not adversely affect the public health, safety, or general welfare;
and are in the best interest of the citizens of the City;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. No Impact on 2018 Business Licenses. It is the City Council's intention
that the following amendments apply to Business Licenses issued for 2019 and beyond,
and have no impact on Business Licenses issued by the City for 2018.
Section 2. TMC Section 5.04.010 Amended. Ordinance Nos. 2544 §2, 2496 §1,
2381 §1, 2356 §1, 2333 §1 and 2315 §1 (part), as codified at Tukwila Municipal Code
(TMC) Section 5.04.010, are hereby amended to read as follows:
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5.04.010 Definitions
For the purpose of this chapter, the following definitions shall apply:
1. "Business," means and includes all activities, occupations, trades, pursuits,
or professions located or engaged within the City that involves the manufacturing or
processing of materials of any type; the sale of goods, wares or merchandise; the
rendition of services or the repair of goods, wares or merchandise for any consideration
to the person engaging in the same or to any other person or class, directly or indirectly,
whether or not an office or physical location for the business lies within the City limits.
2. "Department," means Finance Department.
3. "Director," means the Finance Director or his or her designee.
4. "Engaging in business" means commencing, conducting, or continuing in
business, and also the exercise of corporate or franchise powers, as well as liquidating a
business when the liquidators thereof hold themselves out to the public as conducting
such business.
a. This section sets forth examples of activities that constitute engaging in
business in the City, and establishes safe harbors for certain of those activities so that a
person who meets the criteria may engage in de minimus business activities in the City
without having to pay a business license fee. The activities listed in this section are
illustrative only and are not intended to narrow the definition of "engaging in business" as
defined above. If an activity is not listed, whether it constitutes engaging in business in
the City shall be determined by considering all the facts and circumstances and applicable
law.
b. Without being all inclusive, any one of the following activities conducted
within the City by a person, or its employee, agent, representative, independent
contractor, broker or another acting on its behalf constitutes engaging in business and
requires a person to register and obtain a business license:
(1) Owning, renting, leasing, maintaining, or having the right to use, or
using, tangible personal property, intangible personal property, or real property
permanently or temporarily located in the City.
(2) Owning, renting, leasing, using, or maintaining, an office, place of
business, or other establishment in the City.
(3) Soliciting sales.
(4) Making repairs or providing maintenance or service to real or
tangible personal property, including warranty work and property maintenance.
(5) Providing technical assistance or service, including quality control,
product inspections, warranty work, or similar services on or in connection with tangible
personal property sold by the person or on its behalf.
(6) Installing, constructing, or supervising installation or construction
of, real or tangible personal property.
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(7) Soliciting, negotiating, or approving franchise, license, or other
similar agreements.
(8) Collecting current or delinquent accounts.
(9) Picking up and transporting tangible personal property, solid waste,
construction debris, or excavated materials.
(10) Providing disinfecting and pest control services, employment and
labor pool services, home nursing care, janitorial services, appraising, landscape
architectural services, security system services, surveying, and real estate services
including the listing of homes and managing real property.
(11) Rendering professional services such as those provided by
accountants, architects, attorneys, auctioneers, consultants, engineers, professional
athletes, barbers, baseball clubs and other sports organizations, chemists, consultants,
psychologists, court reporters, dentists, doctors, detectives, laboratory operators,
teachers, veterinarians.
(12) Meeting with customers or potential customers, even when no
sales or orders are solicited at the meetings.
(13) Training or recruiting agents, representatives, independent
contractors, brokers or others, domiciled or operating on a job in the City, acting on its
behalf, or for customers or potential customers.
(14) Investigating, resolving, or otherwise assisting in resolving
customer complaints.
(15) In-store stocking or manipulating products or goods, sold to and
owned by a customer, regardless of where sale and delivery of the goods took place.
(16) Delivering goods in vehicles owned, rented, leased, used, or
maintained by the person or another acting on its behalf.
c. If a person, or its employee, agent, representative, independent
contractor, broker or another acting on the person's behalf, engages in no other activities
in or with the City but the following, it need not register and obtain a business license.
(1) Meeting with suppliers of goods and services as a customer.
(2) Meeting with government representatives in their official capacity,
other than those performing contracting or purchasing functions.
(3) Attending meetings, such as board meetings, retreats, seminars,
and conferences, or other meetings wherein the person does not provide training in
connection with tangible personal property sold by the person or on its behalf. This
provision does not apply to any board of director member or attendee engaging in
business such as a member of a board of directors who attends a board meeting.
(4) Renting tangible or intangible property as a customer when the
property is not used in the City.
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(5) Attending, but not participating in a "trade show" or "multiple vendor
events". Persons participating at a trade show shall review the City's trade show or
multiple vendor event ordinances.
(6) Conducting advertising through the mail.
(7) Soliciting sales by phone from a location outside the City.
d. A seller located outside the City merely delivering goods into the City by
means of common carrier is not required to register and obtain a business license,
provided that it engages in no other business activities in the City. Such activities do not
include those in subsection 5.04.010(4)(c).
e. The City expressly intends that engaging in business include any activity
sufficient to establish nexus for purposes of applying the license fee under the law and
the constitutions of the United States and the State of VVashington. Nexus is presumed
to continue as long as the taxpayer benefits from the activity that constituted the original
nexus generating contact or subsequent contacts.
45. "License or licensee," as used generally in this chapter, means and includes
respectively the words "permit" or "permittee" or the holder for any use or period of time
of any similar privilege, wherever relevant to any provision of this chapter or other law or
ordinance.
56. "Nonprofit organization" includes individual person(s), partnerships, joint
ventures, societies, associations, churches, clubs, trustees, trusts or corporations; or any
officers, agents, employees, factors or any kind of personal representatives of any
thereof, in any capacity, acting either for himself or any other person under either personal
appointment or pursuant to law who qualifies under definition of and certification by the
Internal Revenue Service as nonprofit.
67. "Person," means any individual, receiver, agent, trustee in bankruptcy, trust,
estate, firm, co -partnership, joint venture, company, joint stock company, business trust,
corporation, society, or group of individuals acting as a unit, whether mutual, cooperative,
fraternal, nonprofit or otherwise.
78. "Person engaged in business" means the owner or one primarily beneficially
interested in lawful business for profit and not employees.
89. "Home occupation" means any business conducted in a residence within the
corporate city limits of Tukwila, such business being subject to the requirements set forth
in TMC Chapter 18.06,43-0, "Definitions," in the section entitled "Home Occupation."
business license.
ate limits of the City that provide
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10. "Employee" means and includes each of the following persons who are not
required by the City to have his/her/its own separate City of Tukwila business license:
a. Any person employed at any business who performs any part of their
duties within the City of Tukwila or reports from a location within the City's corporate limits;
and
b. Any person who is on the business's payroll, and includes all full-time,
part-time, and temporary employees or workers; and
c. Owners, officers, managers, and partners; and
d. Any other person who performs work, services or labor at the business
including, but not limited to, family members, regardless of whether they receive a wage
from the business.
11. "Employee" moans and includes each of thc following persons who are not
be. Self-employed persons, sole proprietors, owners, officers, managers,
and partners; and
Gf. Any other person who performs work, services or labor at the business,
including an independent contractor who may be exempt from requirements to have a
separate City of Tukwila business license.
Employee is a unit of measure used to determine the Business License fee.
Section 3. TMC Section 5.04.015 Amended. Ordinance Nos. 2381 §2, 2333 §2
and 2315 §1 (part), as codified at TMC Section 5.04.015, are hereby amended to read as
follows:
5.04.015 Business License Required
A. No person or persons shall conduct, maintain, operate, or engage in any
business within the City without first applying for and obtaining a business license or
renewing an existing license, and paying the fee(s) as prescribed herein, unless
exempted in this chapter. the business is exempt. The exemptie-n- is only from the need
compliance with other requirements of the Tukwila Municipal Code. All businesses
operating or engaging in business within the City are required to submit a business license
application or renewal, as appropriate, unless exempted in this chapter.regardless of
B. This license shall be in addition to any other licenses or permits required by any
other section of this code or by State or Federal laws.
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C. Business licenses are nontransferable and a separate business license shall be
obtained for each location at which a business operates. Licenses shall be displayed at
each business location so as to be viewable by the public.
Section 4. TMC Section 5.04.020 Amended. Ordinance Nos.2544 §3, 2496 §2,
2381 §3, 2356 §2, 2333 §3 and 2315 §1 (part), as codified at TMC Section 5.04.020, are
hereby amended to read as follows:
5.04.020 Applications and fees required
A. Application Required. Any person desiring to establish or conduct any
business enterprise or undertaking within the corporate limits of the City shall first file a
master application through the Washington State Department of Licensing Master
License Service in coordination with the City of Tukwila Finance Department for a license
to conduct such business. The application shall be upon a form furnished by the
Washington State Department of Licensing Master License Service Finance Department
on which the applicant shall state the company name and address; the nature of the
business activity or activities in which he/she desires to engage; the place where the
business will be conducted; the number of employees, whether full or part-time, on the
payroll as of January 1, or, if a new business, the number to be employed on the opening
date; the Washington State Unified Business Identifier (UBI) number; and other
information pertaining to the business as required by the City. The applicant shall be
required to provide all information requested on said form and failure to do so shall be
grounds for refusing to issue the business license. Owners of residential rental property
are not subject to the application requirements in this chapter but shall adhere to the
application requirements in TMC Chapter 5.06.
B. Fee — General.
1. The application must be accompanied by the appropriate application fee in
accordance with the fee schedule adopted by resolution of the City Council, as well as
the Master License Service handling fee. The license fee for the annual license (Business
License fee) issued under this chapter shall be determined based on the total number of
employees,
the City Council. The business license fee shall be determined by multiplying the
appropriate Business License fee by the number of employees working at or reporting
from a location within the City's corporate limits, in accordance with the fee schedule
adopted by resolution of the City Council. In no event shall the Business License fee be
less than the minimum fee set forth in this chapter. If the number of employees is not
known at the time of application or renewal of the license, the business shall estimate the
maximum number of employees they anticipate working any time during the 12-month
period subject to licensure.
2. It will be the responsibility of the business to determine the total number of
employees and, if required, demonstrate to the satisfaction of the Finance Director that
the information pertaining to the Business License fee is accurate. Businesses without a
full year of operating history shall estimate the number of employees that will be employed
in a 12-month period.
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C. Minimum Fee. There shall be an annual minimum fee for a Business License
in accordance with the fee schedule adopted by resolution of the City Council. An entity
fee,
1. A business with less than $12,000.
minimum license fee.
1. For purposes of the license by this chapter, any person or business whose
annual value of products, gross proceeds of sales, or gross income of the business in the
City is equal to or less than $2,000 and who does not maintain a place of business within
the City, shall submit a business license registration to the Finance Director or designee.
The threshold does not apply to regulatory license requirements or activities that require
a specialized permit.
52. Businesses doing business in the City that have no employees physically
working within the City's corporate limits shall pay the minimum fee required under this
chapter.
chapter and not located within the City's corporate limits shall be determined by
the minimum fee set
0
h in this chapter. If the number of employees is not known at the
during the 12 month period subject to liccnsurc.
23. An entity subject to exemption pursuant to TMC Section 5.04.090 needmay
not pay a Business License fee. An entity engaging in some activities or functions that
are exempt from the Business License fee and some that are not exempt shall pay a
Business License fee based on the number of employees involved in the functions or
activities that are not exempt.
3. If a business has more than one location within the corporate limits of the
required under this chapter.
6. Businesses or organizations eligible for a temporary business license
•
D. New Businesses. The Business License fee for a new business shall be based
on the estimated number of employees that will work, in Tukwila for a 12-month period.
If, during the first license year for a new business, the City determines the actual number
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of employees is significantly different than the estimated number identified by the
business owner, the amount of the Business License fee will be recalculated for the new
business. If the revised Business License fee is higher than the original Business License
fee paid by the business owner for the first license year, the business owner must pay the
difference to the City within 30 days after written notice of the amount owed is sent to the
business owner by the City.
E. Over -reporting of Employees. In the event the business owner miscounted the
number of employees by an error factor of more than 15% and paid an excess Business
License fee as a result, a business may request that the City refund the overpayment.
The request must be made in writing to the Finance Department, and the City must
receive the request and all supporting documentation no later than 60 days after the end
of the calendar year in which the error was made. If the City is satisfied the business
owner paid an excess Business License fee, the City will refund the excess amount paid
to the business owner.
F. Under -reporting of Employees. If, at the time of license renewal, the City
determines the business owner under -reported the number of employees for the
preceding year by an error factor of more than 15%, the business shall pay the balance
of the corrected Business License fee (calculated as the difference between the paid
Business License fee and the corrected Business License fee). The Finance Director
shall mail written notice of the balance due to the business owner, and the business shall
pay the balance due to the City within 30 days of the date the written notice is mailed by
the City. A penalty of 20% of the balance due will be applied if payment is not received
within 30 days.
G. Payment by Draft or Check. Payment made by draft or check shall not be
deemed a payment of the Business License fee unless and until the same has been
honored in the usual course of business, nor shall acceptance of any such check or draft
operate as a quittance or discharge of the Business License fee unless and until the check
or draft is honored. Any person who submits a Business License fee payment by check
to the Washington State Department of Licensing Master License Service or City,
pursuant to the provisions of this chapter, shall be assessed an NSF fee set by the
Finance Director if the check is returned unpaid by a bank or other financial institution for
insufficient funds in the account or for any other reason.
Section 5. TMC Section 5.04.030 Amended. Ordinance No. 2315 §1 (part), as
codified at TMC Section 5.04.030, is hereby amended to read as follows:
5.04.030 Issuance of a License and Annual Renewal
A. Upon review and approval of the application, the Washington State Department
of Licensing Master License Service or the Finance Director or designee issue
a license to the applicant. The license shall grant to the applicant the privilege to conduct
such business at a designated location in the City. Such license may be renewed by
January 1.
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B. Persons continuing to engage in business within the City shall renew their
business license(s) each year. Businesses must pay a renewal fee, as well as the Master
License Service handling fee. The annual business license renewal fee shall be in
accordance with the fee schedule adopted by resolution of the City Council. The annual
fee may be prorated in order to conform the license expiration date with the expiration
date established by the Master License Service. Persons not renewing their business
license by the expiration date may be subject to a late renewal penalty charged by the
Master License Service.
Section 6. TMC Section 5.04.090 Amended. Ordinance Nos. 2544 §5, 2356 §6,
2333 §7 and 2315 §1 (part), as codified at TMC Section 5.04.090, are hereby amended
to read as follows:
5.04.090 Exemption
A. Exemptions. The following entities may claim an exemption from the Business
License fee, but if exempt under this subsection such entities shall still register under this
chapter:
1. Certain Organizations Exempt from Federal Income Tax. An
organization that files with the City a copy of its current IRS 501(c)(3) exemption
determination letter certificate issued by the Internal Revenue Service.
2. A governmental entity that engages solely in the exercise of governmental
functions. Activities that are not exclusively governmental, such as some of the activities
of a hospital or medical clinic, are not exempt under this chapter.
3. A nonprofit business operated exclusively for a religious purpose, upon
furnishing proof to the Finance Director of its nonprofit status. For the purposes of this
chapter, the activities that are not part of the core religious functions are not exempt.
4. Civic groups, service clubs, and social organizations that are not engaged in
any profession, trade, or occupation, but are organized to provide civic, service, or social
activities in the City.
a. Examples of such organizations include but are not limited to:
Soroptomists, Kiwanis, Lions' Rotary, American Legion, children's and adults' athletic
leagues and similar types of groups, clubs or organizations.
5. Court interpreters who provide an oral translation between speakers who
speak different languages, and who are either a certified interpreter, qualified interpreter,
or registered interpreter, and who make less than $12,000 in gross annual revenue in
Tukwila, Washington. Certified, qualified and registered interpreters are defined as
follows:
a. "Certified interpreter" means an interpreter who is certified by the
administrative office of the courts.
b. "Qualified interpreter" means a person who is readily able to interpret or
translate spoken and written English for non -English-speaking persons and to interpret or
translate oral or written statements of non -English-speaking persons into spoken English.
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c. "Registered interpreter" means an interpreter who is registered by the
administrative office of the courts.
B. Nothing in this chapter shall be construed to require a license for any farmer,
gardener, or other person to sell, deliver or peddle any fruits, vegetables, berries, butter,
eggs, fish, milk, poultry, meats or any farm produce or edibles raised, caught, produced
or manufactured by such person in any place within the State.
Section 7. TMC Section 5.04.100 Amended. Ordinance No. 2315 §1 (part), as
codified at TMC Section 5.04.100, is hereby amended to read as follows:
5.04.100 Failure to pay fee
If any person engaged in business fails or refuses to pay the license fee for any year
as herein provided, they shall not be granted a license for the current year until such
delinquent license fees in accordance with the fee schedule adopted by resolution of the
City Council as set forth in TMC 5.01.050have been paid, in addition to the current years'
required fee(s). Such fees may be collected by the City by proper legal action brought
for that purpose if any person engaged in business fails or refuses to pay the license fee.
This remedy is cumulative and not exclusive.
Section 8. TMC Section 5.04.105 Amended. Ordinance No. 2315 §1 (part), as
codified at TMC Section 5.04.105, is hereby amended to read as follows:
5.04.105 Additional Requirements for Issuance of Business License
A. A business license will only be issued provided the building, structure, operation
or location of the business for which the license is sought complies with the requirements
or standards of the Tukwila Municipal Code.
B. In any case where an applicant seeks a business license for a business to be
located in a building or structure for which a building or land use permit is required to
operate the business as proposed, whether as a newly constructed building or structure
or a remodeled building or structure, the permit process, including final
inspections/issuance of occupancy permits, shall be completed prior to issuance of a
business license.
C. In any case where an applicant seeks a business license for a business to be
located in a building or structure for which no building or land use permit is required to
operate the business as proposed, the building department may require the business
premises to be inspected for compliance with life and safety codes. If the inspection
reveals outstanding code violations, the business license will not be issued until all life
and safety code violations are resolved.
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Section 9. TMC Section 5.04.110 Amended. Ordinance Nos. 2496 §5, 2352 §2,
2333 §8 and 2315 §1 (part), as codified at TMC Section 5.04.110, are hereby amended
to read as follows:
5.04.110 Denial, Suspension, Revocation
A. The Finance Director may deny any business license application pursuant to
TMC Section 5.04.105.
B. The Finance Director may deny, suspend or revoke any license under this
chapter where one or more of the following conditions exist:
1. The licensee is in default of any fee, charges or amounts due and payable
to the City of Tukwila, as outlined in the Tukwila Municipal Code or City policy.
2. The license was procured by fraud or by a false or misleading representation
of fact in the application, or in any report or record required to be filed with the Finance
Department.
3. The building, structure, equipment, operation or location of the business for
which the license was issued does not comply with the requirements or standards of the
Tukwila Municipal Code.
4. The license holder, his or her employee, agent, partner, director, officer or
manager has knowingly violated any provisions of any chapter of the Tukwila Municipal
Code, or has knowingly permitted, failed to prevent, or has otherwise allowed a violation
of any of the provisions of any chapter of the Tukwila Municipal Code to occur on his or
her business premises.
5. The license holder, his or her employee, agent, partner, director, officer or
manager has repeatedly violated any provision of City policies or the Tukwila Municipal
Code after having received notice of such violation.
6. Conduct of the business would be in violation of any local, state or federal
law, rule or regulation prohibiting the conduct of that type of business.
7. The property at which the business is located has been determined by a
court to be a chronic nuisance property, a Violation Notice and Order for a chronic
nuisance property has been issued and not timely remedied or appealed, or the Hearing
Examiner has determined the property to be a chronic nuisance property, as provided in
TMC Chapter 8.27.
C. Upon determination that grounds for denial, suspension or revocation of a license
exist, the Finance Director shall send the applicant or license holder a Notice of Denial,
Suspension or Revocation. The Notice of Denial, Suspension or Revocation shall set
forth the grounds for and terms of the denial, suspension or revocation, and a statement
advising the applicant or license holder that he/she may appeal the Notice of Denial,
Suspension or Revocation in accordance with the provisions of TMC Section 5.04.112.
The filing of such appeal shall stay the action of the Finance Director pending decision on
the appeal by the City Hearing Examiner or other hearing body pursuant to TMC Section
5.04.112{-E).
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Page 11 of 13 27
D. Receipt of the Notice of Denial, Suspension or Revocation. The Notice of
Denial, Suspension or Revocation shall be: (1) sent to the applicant or license holder by
registered mail at the address provided on the license application; (2) hand delivered to
the address provided on the license application; or (3) posted upon the premises where
such applicant or license holder conducts the business that is the subject of the denied,
suspended or revoked license. Notice shall be deemed received by the applicant or
license holder upon posting, hand delivery, or 3 business days after mailing, whichever
occurs first.
Section 10. TMC Section 5.04.130 Adopted. TMC Section 5.04.130, "Disclaimer
of City liability," is hereby established to read as follows:
5.04.130 Disclaimer of City liability
The City of Tukwila expressly finds and requires that responsibility for compliance
with the provisions of this chapter rests with license applicants and their agents and that
no action, inaction, or omission of the City or any of its agents or employees shall serve
to assume or shift responsibility for compliance with the provisions of this chapter to any
other party, including the City. Furthermore, issuance of a license pursuant to this chapter
does not constitute the creation of a duty by the City to indemnify the licensee for any
wrongful acts against the public, or to guarantee the quality of goods, services or expertise
of a licensee. The issuance of a license does not shift responsibility from the licensee to
the City for proper training, conduct or equipment of the licensee or their agents,
employees or representatives, even if specific regulations require standards of training,
conduct or inspection.
Section 11. Repealer. Ordinance No. 2425 is hereby repealed in its entirety.
Section 12. 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 13. 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 14. 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.
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Page 12 of 13
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of 2018.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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Page 13 of 13 29
30
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDU
TO: Finance Committee
FROM: David Cline, City Administrator
Rachel Bianchi, Deputy City Administrator
Erika Eddins, Human Resources Analyst
CC: Mayor Allan Ekberg
DATE: September 12, 2018
SUBJECT: Review of Compensation Policy Resolution No. 1796
Update from September 5, Finance Committee Meeting
Note: This is a new informational memorandum with the intent to capture the compensation policy
review and discussion outcomes in preparation for discussion with the full Council.
At the July 17, Finance Committee meeting, Administration sought committee direction to finalize the
scope of the review of the City Council compensation policy. The committee requested that
Administration bring back recommendations on the following proposed policy change considerations of
above and below market adjustments, comparable cities, compression, recruitment incentives, and the
process for non -represented compensation review.
In addition, as directed by the Council, Administration has conducted the external market study using the
Association of Washington Cities and County Employee Salary and Benefit Survey for 2018. Once the
regressions analysis was applied to the raw data, the results show we are still close to market and are
considered very competitive (Exhibit A.1 and A.2). This was also the case when we did the regression
analysis for 2017.
In future years, to address the potential for above and below market wage adjustments, it is recommended
that Council adopt the Market Competitiveness standard provided by our Mr. Lawson, our compensation
consultant as it provides an objective guide to address when positions are out of alignment with the
market.
Option 1
The Market Competitiveness Standard:
+/-5% to +/-10% - Competitive with market
+/-10% to +/-15% - Possibly Misaligned with market
+/-15% and above - Significantly Misaligned with market
For positions that are possibly and significantly misaligned with the market would require review of the
data to ensure the appropriateness of market data and review of job classifications to ensure appropriate
placement.
31
INFORMATIONAL MEMO
Page 2
Below are three examples of a process Council could adopt using the Market Competitiveness Standard:
OPTION A — External Market Study
• During External Market Study (for even numbered years) — Positions that are 5% or more below
market and up to 10% above are considered competitive with the market and will receive a
market adjustment the year the market adjustment is to occur.
• Those positions 10% to 15% above the market will not receive an adjustment during the year the
market adjustment is to occur and will warrant further evaluation and possible reclassification. If
further analysis results in reclassification, any adjustments will be made in alignment with City
policy.
OPTION B — Internal Equity
• Considerations for cost of living adjustment (COLA) for odd numbered years will be based upon
internal equity with represented groups to determine if an adjustment is warranted.
Administration will inform City Council if an adjustment is warranted prior to implementation.
OPTION C — Written Justification for Misaligned Positions
The other option would be to update the current language in Resolution No. 1796 Section B.2. to state "If
the City's pay schedule for any classification that does not represent the average of comparable salary
ranges (+/-10%) written justification must be provided to the City Council."
2. Compression
As it relates to defining Compression, Council Resolution No. 1796, states, "The goal of the City is to
mitigate or avoid salary compression issues where possible. An example of salary compression would be
when a non -represented supervisor earns less or is projected to earn less than those that he/she supervises
due to contracted wage increase."
During the Council work session Mr. Lawson, our consultant expressed that compression cannot be
totally mitigated. Therefore, Administration recommends that Council retain the current definition
reflected in the resolution as it is referenced above. It is further recommended to review the salary
structure more frequently preferably in the year a market study is done to ensure that wage adjustments
that occur over time do not create compression between salary bands.
3. Comparability
During even numbered years when an external market study is conducted, the Administration uses
Council Resolution No. 1796 parameters for comparability which looks at "All Puget Sound jurisdictions
with +/-50% of Tukwila's annual assessed valuation, based upon the Department of Revenue data, will be
used to create the list of comparable jurisdictions for evaluation of salary information." The issue of
comparability has been discussed during the review of this resolution, specifically, do the parameters of
+/-50% reflect the market to which we compare, or should the Committee also consider other factors to
determine external market comparability.
Mr. Lawson, our compensation consultant shared with the Council at their work session on June 19, that
comparability factors could include employee population, assessed valuation double or half the size of
Tukwila, geography, and demographics. Whereas, Administration would not recommend considering
assessed valuation of double the size of Tukwila, consideration of going above +50% would provide more
consistency where jurisdictions come in and out for comparison. For example, in the 2017 Market Study
Issaquah and Shoreline were included since they were within +50% of A.V. In the 2018 Market Study,
these two cities increased to 54% and 57% of A.V. and therefore were excluded (see table below).
32
INFORMATIONAL MEMO
Page 3
Assessed valuation changes annually as reported by the Department of Revenue, Taxing District Levy
Table 30.
City
2017 Assessed
Value
Assessed Value
% of Tukwila
2018 Assessed
Value
Assessed Value
% of Tukwila
Tukwila
$5.040
1.00%
$5.736
1.00%
Shoreline
$7.426
1.47%
$8.848
1.54%
Issaquah
$7.385
1.46%
$8.989
1.57%
Assessed Value represented in Billions
In addition, given that these concerns have been raised by the Non -Represented Employees group and in
previous discussions, the following are some suggested options for your consideration that will mitigate
the inconsistency the current policy parameters impose.
OPTION 1
"All Puget sound jurisdictions with +75/-50% of Tukwila's annual assessed valuation, using the most
current data from County Assessors, will be used to create the list of comparable jurisdictions for
evaluation of salary information." As reflected in Exhibit B, the assessed valuation comparison table, this
would serve to eliminate the in and out annually of comparator jurisdictions. If consideration were given
to this option, Administration recommends a "second criteria to assessed valuation, to include employee
population of similar size". As Exhibit B also shows, by increasing to +75% of assessed valuation there
would be more similar employee populations to compare to Tukwila.
OPTION 2
Make no change and retain current policy statement of comparison to "All Puget Sound jurisdictions of
+/-50% of Tukwila's annual assessed valuation".
New Recruitment Incentives
The Finance Committee requested more information on what other cities do to recruit and retain
employees. Twenty- five (25) Puget Sound Cities were surveyed and responded to our request on the
attached Exhibit C. The data shows that some cities offer hiring bonuses specifically to law enforcement
positions, additional vacation hours, or the ability to use vacation sooner than the typical six months.
Several cities did not offer any recruitment incentives.
As has been discussed in previous committee meetings, Tukwila currently offers hiring bonuses to attract
applicants to highly competitive positions such as Building and Construction Inspector, or Law
Enforcement positions. Mr. Lawson, our compensation consultant, shared with the Council that a market
premium may be appropriate to implement specifically when you want to attract and retain jobs that are
competitive in the labor market.
Administration recommends the Committee define in its policy a statement that reflects its philosophy of
providing above average benefits, hiring incentives and competitive pay to attract, and retain a highly
skilled, qualified and trained workforce.
33
INFORMATIONAL MEMO
Page 4
Non -Represented Compensation Review Process
The final item for discussion is should the process for non -represented compensation review change.
Currently Resolution No. 1796, provides that non -represented employee compensation be reviewed
annually to consider external market or a cost of living adjustment. Unlike represented groups, the non -
represented compensation review typically is presented in the fall prior to the year of implementation.
This is a more public process. Administration recommends adopting review of non -represented
compensation at the time the budget is being adopted so that external market and cola wage adjustments
are a more efficient and seamless transition covering a two-year period versus an annual review process.
The remainder of schedule for review of the City Council Resolution No. 1796 is as follows
September 5 — Finalize recommendations for City Council consideration
September 10- Bring recommendation to the City Council for review and discussion
September 17 — Adoption of changes to Resolution No. 1796 for implementation
We look forward to discussing these recommendations and options at the Finance Committee meeting on
August 21, 2018.
Follow Up from the August 21, Finance Committee Meeting
At the August 21, Finance Committee Meeting, Administration reviewed the following recommendations
with the Committee members:
• Reviewed results of the 2018 External Market Study for Non -Represented Employees;
• Recommendations and options for consideration on above and below market adjustments;
• Recommendations regarding how to address compression;
• Recommendations and options for consideration on comparability; and
• Recommendation on new recruitment incentives and the process for review of Non -represented
compensation.
The Committee reviewed the recommendations, provided input, and asked these recommendations be
discussed further at the Sept 5 Finance Committee meeting. In addition, based upon the results from both
the 2017 and 2018 external market studies, the regression shows that we are competitive with the market.
It was requested that Administration continue the current policy of conducting the external market study.
The Finance Committee asked for Administration to supplement the tables in Exhibits A.1 and A.2 to
show the 2018 market study regression results based upon +60 of Assessed Valuation to include the two
cities that were excluded from the original study based upon the +/-50% Assessed Valuation criteria.
Those cities are Issaquah and Shoreline and the Committee can see the impact of this change now
reflected in Exhibits A.1.1 and A.2.1. This analysis shows that the City remains competitive within the
market averages.
It was also requested that the table in Exhibit B be updated to include columns showing City populations
as a percentage of Tukwila's. Exhibit B.I includes the population information as well as a column
showing the 2018 Assessed Values by County data. The County data provides the most current assessed
valuation figures available for cities and is included for comparison to the State Department of Revenue
which lags a year behind.
34
INFORMATIONAL MEMO
Page 5
Follow Up from the September 5, Finance Committee Meeting
Following the September 5 Finance Committee meeting, staff updated the resolution to reflect the
following changes from Committee members:
• Increase timeliness of information — edits to A.2 and addition of A.3
• Update comparability definitiops — edits to B.1
o Use most current data from the County Assessors
o Update the policy to +75% in order to maintain stability in the comparable cities year
after year to mitigate changes in assessed valuation
o Include a secondary criteria of FTE count as a refining factor to provide a manageable
number of comparable jurisdictions
• Include policy direction on what makes a position considered to be in market — addition of B.3
• Include policy direction on what would happen if positions are found to be above the market
during a market survey year — addition of B.3
• Provide policy language on internal equity between non -represented and represented employees
during COLA years — edits to B.4
After the September 5 meeting, staff learned that effective January 2018 the Bureau of Labor Statistics
introduced the first changes to CPI since 1998. The former Seattle -Tacoma -Bremerton index, which
included King, Pierce, Island, Kitsap and Thurston Counties, is now the Seattle -Tacoma -Bellevue index,
which includes King, Pierce and Snohomish Counties only. Staff recommends that the policy be updated
to reflect this new index and use this definition for "Puget Sound jurisdictions" referenced in section B.1.
This change would remove Bainbridge Island as a comparable jurisdiction. Edits to B.4.
Staff was asked to provide information on the market effect of these changes on non -represented
employees. Analysis shows that raising the assessed value to +75% keeps all City employees consistent
with the market. There is no significant variance between what was presented when just Issaquah and
Shoreline were added. The attached tables provide this analysis for non -represented employees.
The remainder of the schedule for review of the City Council Resolution No. 1796 is as follows
September 18 — Finalize recommendations for City Council consideration
September 24 - Bring recommendation to the City Council for review and discussion
October 1 — Adoption of changes to Resolution No. 1796 for implementation
Follow Up from the September 5, Finance Committee Meeting
Following the September 18 Finance Committee meeting, staff updated the resolution to reflect the
following changes from Committee members:
• Updated timeliness of information — edits to A.2 and deletion of A.3
• Provided a definition for comparable employee population based on city police departments —
edits to B.1
• Updated documentation and process for positions above market — edits to B.3
• Updated documentation and process for adjustments to COLA — edits to B.4
• Provided a new definition for compression — edits to B.6
o "An example of salary compression is when there is only a small difference in pay between
employees regardless of their skills, level, seniority or experience."
• Updated process to have an annual review of the compensation policy if warranted — edits to B.7
A revised schedule is provided for your review
October 1 — Finalize recommendations for City Council consideration
October 8 or 22 - Forward recommendation to the City Council for review and discussion
October 15 or Nov 6 — Adoption of changes to Resolution No. 1796 for implementation
35
36
NOTE: Shaded text in various locations reflects changes
made after review by the Finance Committee on
September 18, 2018.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUKWILA, WASHINGTON, ESTABLISHING A
COMPENSATION POLICY FOR CITY OF TUKWILA
EMPLOYEES AND REPEALING RESOLUTION NO. 1796.
WHEREAS, the City believes that the purpose of a compensation program is to
facilitate recruiting, retention, development and productivity of employees; and
WHEREAS, the City desires to utilize standardized policies, procedures and
processes, wherever possible, for compensating all employee groups, both represented
and non -represented; and
WHEREAS, the City recognizes that current economic conditions and forecasts,
long-range City budget forecasts, and position rates for comparable jurisdictions, as
well as internal equity considerations, should assist in guiding the compensation of
employees; and
WHEREAS, the City has made a determination to, when economic conditions
allow, review and adjust non -represented employee salaries via a market analysis to
that of the average of comparable jurisdictions in even -numbered years, and to provide
a cost -of -living (COLA) allowance in odd -numbered years; and
WHEREAS, the City has made a determination to, when economic conditions and
negotiations allow, provide represented employees with salaries that reflect the average
of comparable jurisdictions; and
WHEREAS, the City has made a determination to, when economic conditions
allow, provide benefits to represented and non -represented employees that are slightly
above the average of comparable jurisdictions; and
WHEREAS, the City Council will participate in setting negotiation expectations and
reviewing and approving represented employee group contracts;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
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37
Section 1. The following statements and processes are adopted for the purpose of
guiding compensation programs for employees of the City of Tukwila.
A. Information to be provided to the City Council.
1. For Represented Employees. A written presentation of current internal
and local external public agency salary and benefit trends, including a salary and
benefits market survey of comparable jurisdictions, as defined herein, will be provided
to the City Council. This presentation must be made to the Council prior to the
commencement of negotiations with the bargaining units regarding salary and benefits.
The City Council and Administration will discuss represented employee group
negotiation expectations, negotiating points, salary and benefit change floors and/or
ceilings prior to the beginning of and at appropriate points during, negotiation sessions.
2. For Non -Represented Employees. A written presentation of current
internal and local external public agency salary and benefit trends, including a salary
and benefits market survey of comparable jurisdictions, as defined herein, will be
provided to the City Council by Administration every year by the end of the third quarter
that a non -represented salary increase is due. Relevant Association of Washington
Cities (AWC) data from the previous year's Washington City and County Employee
Salary and Benefit Survey, for the comparable jurisdictions, will be used in the salary
market survey.
B. Compensation Policy.
I. All Puget Sound jurisdictions with +75/-50% of Tukwila's annual assessed
valuation,baccd upon the Department of Revenue data using the most current data
from County Assessors, will be used to create the list of comparable jurisdictions for
evaluation of salary information. A second criteria to be used to refine comparable
jurisdictions is to include cities with their own police departmenternployee population. It
is desirable to use the same comparable jurisdictions for both represented and non -
represented employee groups.
2. For non -represented employees, the City desires to pay the average salary
for the particular pay scale, as derived from the comparable jurisdiction data described
in Section B.1. If the City's pay scale for any classification does not represent the
average of comparable salary ranges (+1-5%), written justification must be provided to
the City Council. For represented employees, the City desires to pay salaries that are
competitive to the City's comparable jurisdictions.
3. Positions that are 5% or more below the market and up to 10% above the
market are considered competitive with the market and will receive a market adjustment
the year the atiAlvsurvey is to occur. Those positions more than 10% above the market
will not receive an adjustment during the year the market adjustment is to occur and will
warrant further evaluation and possible recla
potential reclassification will be provided to the City Council for review and approval, If
38 W:\Word ProcessingResolutions\Compensation policy for City employees strike-thru 9-24-18
Page 2 of 3
irther analysis he documented justification results in reclassification, any adjustments
will be made in alignment with City policy.
43. The cost -of -living adjustment (COLA) in odd -numbered years for non -
represented employees shall be based upon 90% of the Seattle -Tacoma -Bellevue
BrcmertonConsumer Price Index (CPI-W) Average (June to June). It is desirable to
calculate represented cost -of -living adjustments the same way, unless a different
method is authorized by the Council. Considerations for cost -of -living adjustment for
odd -numbered years will be based upon internal equity with represented groups to
determine if an adjustment is warranted. Administration will inform provide a written
justification to the City Council documenting that if -an adjustment is warranted prior to
implementation.
54. The goal of the City is to establish parity between represented and non -
represented employees' benefits. The City desires to provide employee benefits that
are competitive to the comparable cities described herein. The City will endeavor to
keep increases to annual health care costs under market averages. If costs exceed
market averages, adjustments will be made to reduce benefit costs.
65. The goal of the City is to mitigate or avoid salary compression issues
where possible. An example of salary compression is when there is only a small
difference in , Pay between employees regardless of their Skills, level, seniority or
experience would be whciva non represented supervisor earns loss, or is projected
rn less than those that he/she supervises duo to contracted wage increases.
76. The City Council shall review the compensation policy described herein on
an annual basis to assess efficacy and make adjustments if warranted.. If the
Administration determines that a deviation from the above process (in its entirety or for
individual positions) is necessary, it will provide justification to the City Council for
review and approval prior to the adoption of any process change.
Section 2. Resolution No. 1796 is hereby repealed.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of , 2018.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Rachel B. Turpin, City Attorney
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39
40
16000
14000
12000
10000
8000
6000
4000
2000
0
0
City of Tukwila, WA
Market Data Regression
1.1162x + 3376
R2= 0.9851*...,'
2000 4000 6000 8000 10000 12000
0 Max Avg • Max Median ... . Linear (Max Median)
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
0
City of Tukwila, WA
Market Data Regression - Revised Analysis
y = 1.179x + 3178.3
R2 = 09836.
2000 4000 6000 8000 10000
Max Median S Tukwilla Linear (Max Median)
New Exhibit 9/12/18
16000
14000
12000
10000
8000
6000
4000
2000
0
0
+75/-50% AV EXHIBIT A.1.2
City of Tukwila, WA
Market Data Regression
y = 1.1758x + 3171.4
Rz = 0.9816
2000 4000 6000 8000 10000 12000
Max Ave
Max Median ----- Linear(Max Median)
Structure Comparison: Max Comparisons
Mk
aret
Median
Market
Median
Hrly
Current Max
Max Based on
Regression
Results
% Diff
All
N/A
N/A
$27.12
$23.77
-12%
Al2
N/A
N/A
$29.30
$25.92
-12%
Al3
N/A
N/A
$31.47
$28.06
-11%
B21
N/A
N/A
$33.65
$30.21
-10%
B22
N/A
N/A
$35.83
$32.36
-10%
B23
$5,975
$34.47
$38.00
$34.50
-9%
C41
N/A
N/A
$46.26
$43.09
-7%
C42
$7,276
$41.97
$48.89
$45.24
-7%
C43
N/A
N/A
$51.06
$47.38
-7%
C51
N/A
N/A
$53.79
$50.07
-7%
C52
N/A
N/A
$57.06
$53.28
-7%
D61
$10,071
$58.10
$58.04
$55.97
-4%
D62
N/A
N/A
$59.07
$58.11
-2%
D63
$10,639
$61.38
$61.15
$60.26
-1%
D71
N/A
N/A
$63.77
$62.94
-1%
D72
$11,453
$66.08
$66.88
$66.16
-1%
E81
N/A
N/A
$69.48
$68.85
-1%
E82
$12,416
$71.63
$71.58
$70.99
-1%
E83
$12,932
$74.61
$73.66
$73.14
-1%
E91
$13,302
$76.74
$76.23
$75.82
-1%
E92
N/A
N/A
$79.40
$79.04
0%
F101
N/A
N/A
$82.56
$82.26
0%
F102
$14,163
$81.71
$83.65
$85.48
2%
Negative % = leading market Positive % = lagging market
Average % Difference
There are no current Non -Represented positions in Bands All, Al2, A13
-4.8%
Observations:
Current maximums for DBM ranges All - C52 currently lead the market
Beginning with D61, the ranges are aligned with market in a highly competitive manner
EXHIBIT Al
44
EXHIBIT A.2.1
All
Structure Comparison: Max Comparisons - Revised
Analysis w/Issaquah & Shoreline
Market
Median
Hrly
Current Max
Max Based on
Regression
Results:
Original
% Diff
N/A
$27.12
$22.87
-16%
Al2
N/A
$29.30
$25.14
-14%
A13
N/A
$31.47
$27.40
-13%
B21
N/A
$33.65
$29.68
-12%
822
N/A
$35.83
$31.94
-11%
B23
$36.61
$38.00
$34.21
-10%
C41
N/A
$46.26
$43.28
-6%
C42
$43.19
$48.89
$45.54
-7%
C43
N/A
$51.06
$47.81
-6%
C51
N/A
$53.79
$50.65
-6%
C52
N/A
$57.06
$54.05
-5%
D61
$57.89
$58.04
$56.88
-2%
D62
N/A
$59.07
$59.15
0%
D63
$60.26
$61.15
$61.41
0%
D71
N/A
$63.77
$64.25
1%
D72
$66.77
$66.88
$67.65
1%
E81
N/A
$69.48
$70.49
1%
E82
$74.26
$71.58
$72.75
2%
E83
$76.31
$73.66
$75.02
2%
E91
$77.08
$76.23
$77.85
2%
E92
N/A
$79.40
$81.25
2%
F101
N/A
$82.56
$84.66
3%
F102
$84.25
$83.65
$88.06
5%
Average % Difference
-3.9%
There are no current Non -Represented positions in Bands All, Al2, A13
Negative % = leading market
Positive % lagging market
Observations: Pay structure better aligned with market with inclusion of Issaquah
and Shoreline
45
New Exhibit 9/12/18 EXHIBIT A.2.2
Structure
Comparison: Max Comparisons +75%/-50%
1
Market
Median
Hrly
Current Max
Max Based on
Regression
Results
% Diff
All
N/A
$27.12
$22.82
-16%
Al2
N/A
$29.30
$25.08
-14%
A13
N/A
$31.47
$27.34
-13%
B21
N/A
$33.65
$29.60
-12%
B22
N/A
$35.83
$31.86
-11%
B23
$36.61
$38.00
$34.12
-10%
C41
N/A
$46.26
$43.17
-7%
C42
$42.61
$48.89
$45.43
-7%
C43
N/A
$51.06
$47.69
-7%
C51
N/A
$53.79
$50.52
-6%
C52
N/A
$57.06
$53.91
-6%
D61
$56.94
$58.04
$56.74
-2%
D62
N/A
$59.07
$59.00
0%
D63
$61.38
$61.15
$61.26
0%
D71
N/A
$63.77
$64.08
0%
D72
$66.83
$66.88
$67.48
1%
E81
N/A
$69.48
$70.31
1%
E82
$75.43
$71.58
$72.56
1%
E83
$75.54
$73.66
$74.82
2%
E91
$75.54
$76.23
$77.65
2%
E92
N/A
$79.40
$81.04
2%
F101
N/A
$82.56
$84.44
2%
F102
$84.25
$83.65
$87.83
5%
Negative %= leading market Positive % = lagging market
Average % Difference -4.09%
There are no current Non -Represented positions in Bands All, Al2, A13
Observations:
Current maximums for DBM ranges All - C52 currently lead the market
Beginning with 061, the ranges are aligned with market in a highly competitive manner
46
Puget Sound City
Comparisons within
+75%/-50% AV
EXHIBIT B
Des Moines
Maple Valley
Lake Stevens
iMukilteo
Puyallup
SeaTac
Assessed Valuation Comparisons
King
King
Snohomish
Snohomish
Pierce
King
Lakewood Pierce
Burien King
Lynnwood Snohomish
;Tukwila King
Marysville
Bainbridge Island
Edmonds
Bothell
Shoreline
Issaquah
Federal Way
!Auburn
Snohomish
Kitsap
Snohomish
King/Snohomish
Snohomish
King
King
King/Pierce
3,194,299,789
3,268,616,351
3,324,196,683
4,354,213,237
5,148,032,791
5,405,585,665
S) H 1511
0.55 132
0.56 46
0.57 93
0.75 124 X
0.89 269
0.94 112
5,410,414,843 0.94 209
5,608,165,807 0.97 78
5,654,422,666 0.98 350
5,736,568,228 1.00 321 X
6,425,149,097 1.12 277
6,898,602,203 1.20 122
8,177,283,180 1.42 220
8,760,887,474 1.52 328 X
8,848,561,852 1.54 176
8,989,557,112 1.56 248
9,420,224,291 1.64 323
9,555,039,113 1.66 437
47
REVISED 9/12/18
00
x
X
X
X
x
X
X
X
x
X
X
x
x
x
x
x
x
x
Maple Valley
Lake Stevens
Des Moines
Mukilteo
Puyallup
Lakewood
SeaTac
Tukwila
Lynnwood
King
Snohomish
King
Snohomish
Pierce
Pierce
King
King
Snohomish
ate DO
etiWaue;
3,268,616,351
3,324,196,683
$ 3,194,299,789
X
X
X
X
X
x
x
Burien
Marysville
Bainbridge Island
King
Snohomish
Kitsap
X
X
x
x
Edmonds
Bothell
Snohomish
King/Snohomish
Assessed Valuation Comparisons
56%
57%
55%
4,354,213,237 75%
5,148,032,791 89%
5,410,414,843 94%
5,405,585,665 94%
5,736,568,228 1003
5,654,422,666 98%
5,608,165,807
6,425,149,097
$ 6,898,602,203
$ 8,177,283,180
X
X
x
x
x
x
Issaquah
Shoreline
Federal Way
Auburn
Mercer Island
Renton
King
King
King
King/Pierce
King
King
8,760,887,474
97%
112%
120%
143%
153%
46
93
8,989,557,112
$ 8,848,561,852
$ 9,420,224,291
$ 9,555,039,113
Kent
Redmond
King
King
157%
154%
164%
167%
$ 12,083,477,559 211%
$ 15,035,333,726 262%
$ 16,335,686,545 285%
$ 18,631,080,894 325%
14%
29%
132 41%
124
39%
269
4%
of Tukwila
Population Popit`tation
24,900
127%
209
65%
112 35%
321 100%
300 109%
78 24%
277 86%
122 38%
220 69%
328 102%
248 77%
176 55%
323 101%
31,740 161%
30,860 157%
21,240 108%
40,500 206%
59,280 302%
28,850 147%
19,660 100%
36,950 188%
50,680 258%
65,900 335%
23,950 122%
41,260 210%
44,370 226%
36,030 183%
55,060 280%
96,350 490%
3,680,189,655
EXHIBIT B.1
60%
S 3,784,529,975
$ 3,823,309,451 62%
$ 4,745,542,557 77%
$ 5,666,549,214 92%
$ 6,002,783,089 97%
$ 6,165,328,557 100%
$ 6,184,943,263 100%
$ 6,272,081,312 101%
$ 6,385,711,481 103%
$ 7,144,089,843 116%
$ 7,542,154,879 122%
$ 9,107,284,679 147%
$ 9,900,884,044 160%
437 136%
205
540
691
642
64%
168%
215%
200%
78,960 402%
24,210 123%
102,700 522%
127,100 646%
62,110 316%
61%
10,152, 241,433 164%
10, 228,874,349 165%
10, 301, 293, 691 167%
$ 10,600,014,202 171%
$ 13,326,314,672 215%
X
X
$ 16,909,050,051 273%
$ 18,597,339,729 301%
$ 20,770,064,850 336%
* WA State Department of Revenue (DOR) data was used for the 2018 Market Survey. The most recent DOR data available at the time of survey is 2017 figures (data lags by one year.)
FTE = Full Time Equivalent Employees
County Assessed Values from County Assessor Data current 2018 values
Sorted by 2018 County Assessed Values
X
x
X
X
x
X
X
X
X
X
X
X
X
X
X
X
X
x
x
Comparison on Recruiting Incentives
EXHIBIT C
Surveyed 25 Puget Sound Cities below are the responses received.
Puget Sound Cities
Recruiting Incentives Offered
Auburn
None
Bainbridge Island
None
Bremerton
Hiring Incentives Policy for difficult to fill positions. Bonus up to $5k
Burien
At times offer a bank of vacation hours (management positions)
Edmonds
None
Federal Way
Hiring bonus offered to lateral police officers; Director level positions receive 40 hours vac upon hire; have
paid up to $5k in relocation expenses when applicable
Issaquah
None
Kent
Can offer vacation immediately upon hire; signing bonuses for PD; may advance to next salary step after 6
months instead of one year. Have paid for travel to and from for final interviews
Kirkland
Hiring bonus for police officer
Lake Stevens
May provide more vacation to non -reps at hire
Lakewood
Management level non -reps may receive initial leave upon hire, and an on occasion a higher vacation accrual
rate
Lynnwood
None
Maple Valley
Managers & Directors may negotiate for additional vacation
Mt. Lake Terrace
Can offer higher vacation accruals and/or ability to use accrued vacation before 6 months
Mukilteo
On occasion have offered higher management positions vacation (2-3 weeks) upfront
Renton
Hiring bonus to lateral police officers; on occasion have given lump sum vacation or accelerated vacation
accrual rate.
SeaTac
None
50