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FIN 2018-11-06 COMPLETE AGENDA PACKET
City of Tukwila Finance Committee o De'Sean Quinn, Chair o Dennis Robertson o Kate Kruller AGENDA TUESDAY, NOVEMBER 6, 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 R. Bianchi C. O'Flaherty L. Humphrey Item Recommended Action Page 1. PRESENTATION(S) 2. BUSINESS AGENDA a. Mayor's Office contracts/agreements: a. Forward to 11/19 Consent Pg.1 (1) A contract for prosecution services. Agenda. (2) A contract for public defense services. (3) A contract for City Attorney services. (4) A lease agreement with Sound Cities Association. (5) A lease agreement with Alliance One. Rachel Bianchi, Deputy City Administrator b. Tax levy legislation: b. Forward to 11/13 C.O.W. Pg.55 (1) An ordinance levying the general taxes for the City commencing for Public Hearing and 1/1/2019. 11/19 Regular Mtg. (2) An ordinance increasing the regular tax levy commencing 1/1/2019. Vicky Carlsen, Deputy Finance Director c. Budget legislation: c. Forward to 11/13 C.O.W. Pg.65 (1) An ordinance adopting the 2019-2020 Biennial Budget. for Public Hearing. (2) A resolution adopting the Financial Planning Model and CIP (Capital Improvement Program). Vicky Carlsen, Deputy Finance Director d. A resolution adopting updated policies related to the d. Forward to 11/13 C.O.W. Pg.73 Financial Planning Model and other general financial policies. and 11/19 Regular Mtg. Laurel Humphrey, Council Analyst e. An agreement with the Washington State Department e. Forward to 11/19 Consent Pg.79 of Revenue for business licensing. Agenda. Vicky Carlsen, Deputy Finance Director f. A resolution ordering the cancellation of uncollectable f. Forward to 11/19 Consent Pg.91 accounts receivable. Agenda. Vicky Carlsen, Deputy Finance Director 3. ANNOUNCEMENTS 4. MISCELLANEOUS Next Scheduled Meeting: Tuesday, November 20, 2018 6. The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk©TukwilaWA.gov) for assistance. Allan Ekberg, Mayor TO: Mayor's Office - David Cline, City Administrator Mayor Ekberg Finance & Safety Committee FROM: David Cline, City Administrator DATE: October 26, 2018 SUBJECT: Contract for Prosecution Services BACKGROUND Since 2011 Kenyon Disend has subcontracted prosecution services. As of August 31, 2018, they discontinued providing any prosecution services. At that time, the City entered into a short-term agreement with the Walls Law Firm, who had been subcontracting with Kenyon Disend, for the remainder of the 2018. The City advertised a Request for Qualifications and Proposals for Prosecution Services for 2019 - 2020 in the Seattle Times and the Daily Journal of Commerce and with the King County Bar Association and the Washington Association of Prosecuting Attorneys. DISCUSSION The Walls Law Firm has provided prosecution services to the City of Tukwila for several years through a contract with Kenyon Disend. When Kenyon Disend decided to discontinue providing prosecution services the City opted to take the opportunity to go through an RFQ/RFP process. The Walls Law Firm was the only one to submit a proposal. The Walls Law Firm's proposal highlights their prosecution philosophy: Consequences to discourage wrongdoing, rehabilitative requirements to reduce recidivism, and protection of victims and the community, which aligns with the City's Strategic Plan. They are committed to providing effective prosecution that is mindful of the City's resources yet innovative in meeting new challenges as they arise. In conjunction with the City's efforts to reduce 2019-2020 budget expenditures by three (3) percent, the Walls Law Firm has proposed to provide prosecution services at a rate of $13,100 per month which represents a three (3) percent reduction from their current monthly rate of $13,500 per month. City staff recently conducted a survey comparing prosecution costs from local jurisdictions and found that this is a comparable rate. While only one proposal for services was submitted, the proposal includes all the services required by the City to provide quality prosecution services, the attorneys have extensive prosecution experience and have established positive working relationships with the Municipal Court, the Police Department and the Public Defense Attorneys, and the proposed rate of compensation is Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov Memo re: Contract for Prosecution Services October 26, 2018 Page 2 comparable with other local jurisdictions. For those reasons, City staff is recommending acceptance of the proposal from the Walls Law Firm for prosecution services. RECOMMENDATION The Committee is being asked to move this contract forward to the consent agenda of the November 19, 2018 City Council Meeting for approval and authorization for execution by the Mayor. ATTACHMENTS Draft Contract for Prosecution Services for 2019-2020 2 Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Contract Number: CONTRACT FOR PROSECUTION SERVICES This Agreement is entered into by and between the City of Tukwila, Washington, a non -charter optional municipal code city hereinafter referred to as "the City," and the Walls Law Firm hereinafter referred to as "the Contractor. WHEREAS, the City has determined the need to have certain services performed for its citizens but does not have the manpower or expertise to perform such services; and WHEREAS, the City desires to have the Contractor perform such services pursuant to certain terms and conditions; now, therefore, IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Scope and Schedule of Services to be Performed by Contractor. The Contractor shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Contractor shall at all times comply with all Federal, State, and local statutes, ordinances and rules applicable to the performance of such services and the handling of any funds used in connection therewith including the provisions of the Washington Supreme Court Order 25700-A-1013 and the public defense standards adopted by the City pursuant to TMC 2.70. Compliance with these standards goes to the essence of this Agreement. The Contractor shall request and obtain prior written approval from the City if the scope of services is to be modified in any way. 2. Compensation and Method of Payment. The City shall pay the Contractor for services rendered according to the rate and method set forth on Exhibit B attached hereto and incorporated herein by this reference. 3. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing January 1, 2019 and ending December 31, 2020 unless sooner terminated under the provisions hereinafter specified or extended by the express written consent of Contractor and the Mayor or his designee. 4. Independent Contractor. Contractor and City agree that Contractor 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 Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or Walls Law Firm 2019-2020 3 Page 1 of 8 contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. 5. Indemnification. The Contractor shall defend, indemnify and hold the City, its officers, agents, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of thisAgreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officers, officials, employees, and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Contractor's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 6. Insurance. The Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. Contractor's maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types and with the limits described below: 1. Professional Liability Insurance: The Contractor shall procure and maintain in full force throughout the duration of this Agreement Professional Liability insurance with a minimum coverage of $1,000,000 per claim and $3,000,000 aggregate. Contractor shall provide evidence of such coverage in a manner and form acceptable to the City in the City's sole discretion. Cancellation of the required insurance shall automatically result in termination of this Agreement. 2. Automobile Liability: The Contractor shall procure and maintain in full force throughout the duration of this Agreement Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Automobile liability insurance shall cover all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 4 Walls Law Firm 2019-2020 Page 2 of 8 3. Commercial General Liability: The Contractor shall procure and maintain in full force throughout the duration of this Agreement Commercial General Liability insurance with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000 products -completed operations aggregate limit. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products -completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 1185 or an equivalent endorsement. There shall be no endorsement or modification of the Commercial General Liability Insurance for liability arising from explosion, collapse or underground property damage. The City shall be named as an insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured -Completed Operations endorsement CG 20 3710 01 or substitute endorsements providing equivalent coverage. 4. Workers' Compensation: The Contractor shall procure and maintain Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. B. Other Insurance Provision. The Contractor'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 Contractor's insurance and shall not contribute with it. C. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. D. Verification of Coverage. Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. E. Subcontractors. The Contractor shall have sole responsibility for determining the insurance coverage and limits required, if any, to be obtained by subcontractors, which determination shall be made in accordance with reasonable and prudent business practices. F. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this work with written notice of any policy cancellation, within two business days of their receipt of such notice. 7. Record Keeping and Reporting. A. The Contractor shall maintain accounts and records, including personnel, property, financial and programmatic records which sufficiently and properly reflect all direct and indirect costs of Walls Law Firm 2019-2020 5 Page 3 of 8 any nature expended and services performed in the performance of this Agreement and other such records as may be deemed necessary by the City to ensure the performance of this Agreement. B. These records shall be maintained for a period of seven (7) years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14 and by the City. 8. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement shalt be subject at all times to inspection, review or audit by law during the performance of this Agreement, to the extent permitted by law. 9. Termination. This Agreement may at any time be terminated by the City giving to the Contractor thirty (30) days written notice of the City's intention to terminate the same. Failure to provide products on schedule may result in contract termination. If the Contractor's insurance coverage is canceled for any reason, the City shall have the right to terminate this Agreement immediately. 10. Discrimination Prohibited. The Contractor, with regard to the services to be provided under this agreement, shall not discriminate against any employee, applicant for employment, on the basis of race, religion, creed, color, national origin, age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation or the presence of any sensory, mental or physical disability in the selection and retention of employees or procurement of materials or supplies. 11. Assignment and Subcontract. The Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. 12. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Contractor and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. 13. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited 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 reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 14. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk, City of Tukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 6 Walls Law Firm 2019-2020 Page 4 of 8 Notices to the Contractor shall be sent to the following address: The Walls Law Firm 16300 Christensen Road Suite 360 Tukwila WA 98188 15. Applicable Law; Venue; Attorney's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. DATED this day of , 2018. CITY OF TUKWILA CONTRACTOR Allan Ekberg, Mayor Aaron Walls, Attorney, WSBA No. 25266 ATTEST/AUTHENTICATED: APPROVED AS TO FORM: Christy O'Flaherty, City Clerk Rachel Turpin, City Attorney Walls Law Firm 2019-2020 Page 5of87 EXHIBIT A - SCOPE OF SERVICES 1. Review, make filing decisions, and file all Tukwila Police Department reports involving misdemeanor and gross misdemeanor crimes and represent the City on all contested traffic hearings. 2. Appear at all criminal calendars in Tukwila Municipal Court on behalf of the City of Tukwila including but not limited to: in-custody/out-of-custody arraignments, pre-trial hearings and motions, readiness hearings, bench and/or jury trials, sentencings, review hearings and appeals. 3. Conduct investigations, contact witnesses, conduct plea bargain negotiations and make appropriate plea offers consistent with the laws and regulations as well as City of Tukwila standards and policies, make sentencing and bail recommendations to the Court, prepare and present legal memoranda, subpoenas, jury and other related materials, argue motions, represent the City at restitution hearings, conduct bench and/or jury trials. 4. Administrative functions relating to criminal prosecution and contested traffic hearings such as creation and maintenance of files, and completion of discovery requests. All files shall remain property of the City and shall be returned to the City upon termination of this Agreement or upon request by the City. Contractor shall retain all records in accordance with Washington State document retention laws. 5. Provide legal research, training and assistance to the Tukwila Police Department including statutory interpretation, enforcement issues and case decisions. Attend police department administrative staff meetings as requested. 6. File and defend appeals of municipal court decisions. 7. Contractor agrees to attend seven (7) hours of prosecution focused training each year. This requirement also applies to all associate counsel. Each Attorney will submit a copy of their Continuing Legal Education (CLE) Credits transcript from the Washington State Bar Association (WSBA) with the Annual Report. 8. Reporting: Contractor agrees to submit the following reports: • Monthly Statistics Reports: This report shall take substantially the same form as that attached hereto as Exhibit C and shall be submitted with the monthly invoice; • An Annual Report detailing the number of cases filed for the year, the number of cases referred for pre -filing diversion, the number of cases where pre -filing diversion was successfully completed, the number of cases where stipulated orders of continuance or deferred prosecution was agreed to and the number of cases dismissed. 8 Walls Law Firm 2019-2020 Page 6 of 8 EXHIBIT B - COMPENSATION AND METHOD OF PAYMENT 1. For all prosecution services set forth in Exhibit A, Contractor shall be paid a flat monthly fee of $13,100. 2. The Contractor shall invoice the City by the 10th day of each month for the previous month services. Walls Law Firm 2019-2020 Page 7of89 EXHIBIT C - PROSECUTION MONTHLY REPORT CASES New Filings Cases Declined PRE -FILING DIVERSION Referred for pre -filing diversion Successful completion of pre -filing diversion DISPOSITIONS Deferred Prosecution SOC/ Pre -Trial Diversion Agreement DWLS 3 Amended to Infraction Dismissals prior to Readiness TRIALS SET TRIED Stipulated Facts Trial Bench Trial Jury Trial Dismissals - Post Readiness/Day of Trial '°�% ' % 10 Walls Law Firm 2019-2020 Page 8 of 8 Allan Ekberg, Mayor TO: Mayor's Office - David Cline, City Administrator Mayor Ekberg Finance & Safety Committee FROM: David Cline, City Administrator DATE: October 26, 2018 SUBJECT: Kirshenbaum & Goss, Inc. P.S. Contract for Public Defense Services ISSUE The current contract for public defender services provided by Kirshenbaum & Goss expires December 31, 2018. Attached is a proposed contract for 2019-2020. BACKGROUND The City of Tukwila contracts for public defense services providing legal representation for indigent criminal defendants who qualify for appointment of counsel from the time of screening for eligibility through trial, sentencing and appeals to the superior court, if necessary. DISCUSSION As Council may recall, Public Defense Standards were adopted by the Washington State Supreme Court effective January 1, 2015. These standards delineate the number of cases each attorney can handle per year and mandates that compensation include administrative and training costs. In addition to the new Public Defense Standards the federal court decision, Wilbur v. Mt. Vernon also mandates significant changes to public defense programs. In 2017-2018 we paid a flat rate of $32,600 per month for public defense services to maintain a Public Defense Program that fully complies with these requirements. We have evaluated the components of our program and recommend that we reduce the flat rate to $30,600 per month for 2019 and 2020. RECOMMENDATION The Committee is being asked to move this item forward to the consent agenda of the November 19, 2018 City Council Meeting for approval and authorization for execution by the Mayor. ATTACHMENTS Draft Contract for Public Defense Services for 2019-2020 Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 11 12 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Contract Number: CONTRACT FOR PUBLIC DEFENSE SERVICES This Agreement is entered into by and between the CITY OF TUKWILA, Washington, a noncharter optional municipal code city hereinafter referred to as "the City," and Kirshenbaum & Goss, Inc. P.S., a Washington Corporation, hereinafter referred to as "the Contractor," WHEREAS, the City has a need to have legal services available for citizens, charged with a crime who are deemed indigent and are entitled to the effective assistance of counsel at the public expense; and WHEREAS, the City desires to have the Contractor perform such services pursuant to certain terms and conditions; now, therefore, IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Scope and Schedule of Services to be Performed by Contractor. The Contractor shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Contractor shall at all times comply with all federal, state, and local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith, including the provisions of Washington Supreme Court Order 25700-A-1013 and the public defense standards adopted by the City pursuant to TMC 2.70. Compliance with these standards goes to the essence of this Agreement. The Contractor shall request and obtain prior written approval from the City if the scope of work or schedule of services is to be modified in any way. 2. Compensation and Method of Payment. The City shall pay the Contractor for services rendered according to the rate and method set forth on Exhibit B attached hereto and incorporated herein by this reference. Compensation is based upon the historical case count for the City of cases per year, averaging 1200 cases per year. In compliance with the public defense standards, the case counts include the Contractor's appearance at48 arraignment calendars per year. 3. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing January 1, 2019 and ending December 31, 2020 unless sooner terminated under the provisions hereinafter specified. 4. Independent Contractor. Contractor and City agree that Contractor 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 Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State 13 Kirshenbaum & Goss 2019 - 2020 Page 1 of 11 Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. 5. Indemnification. The Contractor shall defend, indemnify and hold the City, its officers, agents, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officers, officials, employees, and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Contractor's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 6. Insurance. The Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. Contractor's maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types and with the limits described below: 1. Professional Liability Insurance: The Contractor shall procure and maintain in full force throughout the duration of this Agreement Professional Liability insurance with a minimum coverage of $1,000,000 per claim and $3,000,000 aggregate. Contractor shall provide evidence of such coverage in a manner and form acceptable to the City in the City's sole discretion. Cancellation of the required insurance shall automatically result in termination of this Agreement. 2. Automobile Liability: The Contractor shall procure and maintain in full force throughout the duration of this Agreement Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Automobile liability insurance shall cover all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 14 Kirshenbaum & Goss 2019 - 2020 Page 2 of 11 3. Commercial General Liability: The Contractor shall procure and maintain in full force throughout the duration of this Agreement Commercial General Liability insurance with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000 products -completed operations aggregate limit. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products -completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 1185 or an equivalent endorsement. There shall be no endorsement or modification of the Commercial General Liability Insurance for liability arising from explosion, collapse or underground property damage. The City shall be named as an insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed forthe City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured -Completed Operations endorsement CG 20 3710 01 or substitute endorsements providing equivalent coverage. 4. Workers' Compensation: The Contractor shall procure and maintain Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. B. Other Insurance Provision. The Contractor'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 Contractor's insurance and shall not contribute with it. C. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. D. Verification of Coverage. Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. E. Subcontractors. The Contractor shall have sole responsibility for determining the insurance coverage and limits required, if any, to be obtained by subcontractors, which determination shall be made in accordance with reasonable and prudent business practices. F. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this work with written notice of any policy cancellation, within two business days of their receipt of such notice. 15 Kirshenbaum & Goss 2019 - 2020 Page 3 of 11 7. Record Keeping and Reporting. A. The Contractor shall maintain accounts and records, including personnel, property, financial and programmatic records which sufficiently and properly reflect all direct and indirect costs of any nature expended and services performed in the performance of this Agreement and other such records as may be deemed necessary by the City to ensure the performance of this Agreement. B. These records shall be maintained for a period of seven (7) years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14 and by the City. 8. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement shall be subject at all times to inspection, review or audit by law during the performance of this Agreement, to the extent permitted by law. 9. Termination. This Agreement may at anytime be terminated by the City giving to the Contractor thirty (30) days written notice of the City's intention to terminate the same. If the Contractor's insurance coverage is canceled for any reason, the City shall have the right to terminate this Agreement immediately. 10. Discrimination Prohibited. The Contractor, with regard to the services to be provided under this agreement, shall not discriminate against any employee, applicant for employment, on the basis of race, religion, creed, color, national origin, age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation or the presence of any sensory, mental or physical disability in the selection and retention of employees or procurement of materials or supplies. 11. Assignment and Subcontract. The Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement, except for prosecution services, without the written consent of the City. 12. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Contractor and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. 13. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited 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 reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 16 Kirshenbaum & Goss 2019 - 2020 Page 4 of 11 14. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk City of Tukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 Notices to the Contractor shall be sent to the following address: Kirshenbaum & Goss, Inc. P.S. 1314 Central Ave S Ste. 101 Kent, WA 98032-7430 15. Applicable Law, Venue, Attorney's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. DATED this day of , 2018. CITY OF TU KWI LA CONTRACTOR: Allan Ekberg, Mayor David Kirshenbaum Attest/Authenticated: Approved as to Form: Christy O'Flaherty, City Clerk Rachel Turpin, City Attorney 17 Kirshenbaum & Goss 2019 - 2020 Page 5 of 11 EXHIBIT A - SCOPE OF SERVICES Contractor agrees to provide a level of service equal to or greater than the level of service provided by an in-house public defense office. In particular, Contractor agrees to: A. Provide legal representation services in accordance with the standards adopted by the City in TMC 2.70, the standards set forth by the Washington State Bar Association Standards for Indigent Defense Services, the Rules of Professional Conduct, Wilbur v. Mt. Vernon, other related case law and applicable court rules defining the duties of counsel and the rights of defendants in criminal cases for all indigent criminal defendants charged with a misdemeanor or gross misdemeanor under ordinances of the City who qualify for appointment of counsel. The Contractor agrees to attempt to contact the client within 72 hours of notification of appointment. The Contractor shall provide legal representation for each of these defendants from time of screening for eligibility through trial, sentencing and appeals to the superior court, if necessary. B. Pursuant to TMC 2.70.50 Standard 8, the Contractor shall maintain a case reporting and case management system that includes number & type of cases, attorney hours and disposition. C. Determination of indigency for eligibility for appointed counsel under this Agreement shall be determined by an independent screening process established by the City. Should the Contractor determine a defendant is not eligible for assigned counsel prior to the establishment of the attorney/client privilege, the Contractor shall so advise the City to reconsider the screening of that particular individual. D. The Contractor shall provide to the City Police Department, a telephone number or numbers at which an attorney may be reached 24-hours each day for "critical stage" advice to the defendants during the course of police investigations and/or arrest for misdemeanor violations of City Ordinances. E. Any counsel associated with or employed by the Contractor shall have the authority to perform the services called for herein and the Contractor may employ associate counsel to assist him/her at the Contractor's expense. The Contractor and any other attorneys retained pursuant to this section shall be admitted to practice pursuant to the rules of the Supreme Court of the State of Washington and shall have read and be fully familiar with the provisions of the Washington Supreme Court rule and the standards adopted by the City pursuant to TMC 2.70, as well as the Wilbur v. Mt. Vernon decision. F. The City shall provide to the Contractor, at no cost, one copy of all discoverable material concerning each assigned case. Such material shall include, where relevant, a copy of the abstract of the defendant's driving record. G. In the event representation of a defendant hereunder raises a conflict of interest such that the Contractor cannot ethically represent the defendant, said defendant shall be referred back to the City for further assignment, without cost to the Contractor. 18 Kirshenbaum & Goss 2019 - 2020 Page 6 of 11 EXHIBIT A - SCOPE OF SERVICES (CONTINUED) H. Contractor agrees to attend seven (7) hours of criminal defense training each year. The training must be approved by the Washington State Office of Public Defense (OPD) in compliance with the OPD Improvement Program Training requirements. This requirement also applies to all associate counsel. Each attorney will submit a copy of their Continuing Legal Education (CLE) Credits transcript from the Washington State Bar Association (WSBA) with the Annual Report. I. Reporting: Contractor agrees to submit the following reports: • Monthly Case Assignment List: Includes Cause Number, Name, Charges, Date of Assignment and Date of First Effort to Contact; • Monthly Statistics Report: This report shall take substantially the same form as that attached hereto as Exhibit C and shall be submitted with the monthly invoice; • Monthly Case Summary Disposition Report: This report shall take substantially the same form as that attached hereto as Exhibit D and shall be submitted with the monthly invoice; • Quarterly Certification of Compliance: The Contractor shall certify compliance with the standards required by CrRLJ 3.1. The Certification shall take substantially the same form as that attached hereto as Exhibit E and shall be filed quarterly with the Tukwila Municipal Court on the following dates: January 1, April 1, July 1, and October 1, or the next court day, if the filing day falls on a weekend or holiday; • Annual Report: Detailing the number of other public defense contracts including jurisdiction, the number and type of non-public defense cases handled and the total hours billed for non-public defense cases. J. Video Court Services: Provide daily video court public defense services to defendants charged under ordinances of the City who are detained at the SCORE Jail and qualify for public defense services in a manner consistent with the accepted practices for similar services, performed to the City's satisfaction. K. Attorney of the Day Services: Provide an attorney for weekly arraignment calendars, available to all unrepresented defendants for consultation. 19 Kirshenbaum & Goss 2019 - 2020 Page 7 of 11 EXHIBIT B - COMPENSATION AND METHOD OF PAYMENT 1. Effective January 1, 2019 for all public defense services set forth in Exhibit A, Contractor shall be paid a flat monthly fee of $30,600, which includes $2,000 per month for Video Court services, and $200 per day for Attorney of the Day services. 2. Preauthorized Non -Routine Expenses. Non -routine case expenses requested by Attorney and preauthorized by order of the Tukwila Municipal Court. Non -Routine expenses include, but are not limited to: a. Medical and psychiatric evaluations; b. Expert witness fees and expenses; c. Interpreters for languages not commonly spoken in the city or interpreters for services other than attorney/client communication; d. Investigation expenses; e. Medical, school, birth, DMV, 911, emergency communication recordings and logs, and other similar records when the cost of an individual item does not exceed $75; and f. Any other non -routine expenses the Tukwila Municipal Court finds necessary and proper for the investigation, preparation, and presentation of a case. 3. The Contractor shall invoice the City by the fifth day of the month for all cases assigned to him/her for the previous month. The bill shall delineate the following: • City compensation; • Miscellaneous Charges: Copies of invoices and or receipts for miscellaneous charges shall be attached to the bill; and • A list of the cases assigned for the month including the defendant's full name, case number, charges, date of assignment& date of first contact. Payment shall be made on or by the 20th day of each month. 20 Kirshenbaum & Goss 2019 - 2020 Page 8 of 11 EXHIBIT C - PUBLIC DEFENSE MONTHLY REPORT CLIENT CONTACT # per month Jail Visits Out of Court Meetings Phone Calls Email Correspondence MOTIONS PRACTICE Motions RESOURCES UTILIZED Expert Consulted Immigration Case Assistance/Resources (WDA) Interpreter (out of court) Investigator Referred for Mental Health/Competency Evaluation Social Services Liaison COMPLAINTS Complaint Forms Received from Clients Complaints Filed with the WSBA TRAINING (in hours) WDA WACDL Other 21 Kirshenbaum & Goss 2019 - 2020 Page 9 of 11 EXHIBIT D - MONTHLY CASE SUMMARY DISPOSITION REPORT Case Summary Disposition Report Cause Number Name Charges Date of Disposition Disposition Trial Date Jury or Bench Trial Tried # of Appearances in Court # of Meetings Outside of Court Investigator Usage Expert Usage Social Services Liaison Usage Interpreter Usage Outside of Court 22 Kirshenbaum & Goss 2019 - 2020 Page 10 of 11 EXHIBIT E — CERTIFICATION OF COMPLIANCE MUNICIPAL COURT FOR CITY OF TUKWILA STATE OF WASHINGTON CERTIFICATION BY: FOR THE CALENDAR QUARTER OF [ ]No.. [ ] Administrative Filing CERTIFICATION OF APPOINTED COUNSEL OF COMPLIANCE WITH STANDARDS REQUIRED BY CrR 3.1/CrRLJ 3.1/JuCR 9.2 The undersigned attorney hereby certifies that for the past quarter and for the remainder of the year: 1. Approximately % of my practice time is devoted to indigent defense cases for the City of Tukwila. Approximately % of my practice is devoted to indigent defense cases for the following jurisdictions: Approximately % of my practice is devoted to private practice. 2. I am familiar with the applicable Standards adopted by the Supreme Court for attorneys appointed to represent indigent persons and certify that: a. Basic Qualifications: I meet the minimum basic professional qualifications in Standard 14.1. b. Office: I have access to an office that accommodates confidential meetings with clients, and I have a postal address and adequate telephone services to ensure prompt response to client contact, in compliance with Standard 5.2. c. Investigators: I have investigators available to me and will use investigation services as appropriate, in compliance with Standard 6.1. d. Caseload: I will comply with Standard 3.2 during representation of the defendant in my cases. I will not accept a greater number of cases than specified in Standard 3.4, prorated if the amount of time spent for indigent defense is less than full time. e. Case Specific Qualifications: I am familiar with the specific case qualifications in Standard 14.2, Sections B-K and will not accept appointment in a case as lead counsel unless I meet the qualifications for that case. f. Training: I will attend seven (7) hours of criminal defense training approved by the Washington State Office of Public Defense (OPD) in compliance with the OPD Improvement Program Training requirements each calendar year. Attorney, WSBA No. Date 23 Kirshenbaum & Goss 2019 - 2020 Page 11 of 11 24 TO: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Mayor Ekberg Public Safety Committee FROM: David Cline, City Administrator DATE: October 26, 2018 SUBJECT: Kenyon Disend, PLLC 2019-2020 Contract for Legal Services ISSUE The current contract for Legal Services provided by Kenyon Disend expires December 31, 2018. The proposed contract for 2019-2020 is attached. BACKGROUND The City of Tukwila contracts with Kenyon Disend for the following legal services: • General City Attorney Services; • Public Records Support Services; • Litigation and contested administrative proceedings; • Special services - specialized municipal law services authorized by the City; and • Paralegal Services. DISCUSSION Under the current and proposed contracts, general City Attorney services are provided at a flat monthly rate. Litigation, contested administrative proceedings and special services are subject to prior approval and are billed at the hourly rates of the staff involved. Hourly rates are attached to the proposed 2019 -2020 contract. The 2017 -2018 flat rate for general City Attorney and Prosecution services was $46,436 per month. Effective September 1, 2018 Kenyon Disend discontinued providing Prosecution Services and flat monthly rate for was reduced to $33,436. The 2019 -2020 contract increases the flat rate to $33,940 per month. This reflects a 1.5 percent increase to account for cost of living adjustments and modest increases in attorney billing rates. RECOMMENDATION The Committee is being asked to move this item forward to the consent agenda of the November 19, 2018 City Council Meeting for approval and authorization for execution by the Mayor. ATTACHMENTS Draft 2019-2020 Contract for Legal Services 25 26 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 CONTRACT FOR LEGAL SERVICES Contract Number: This Agreement is entered into by and between the CITY OF TUKWILA, Washington, a noncharter optional municipal code city hereinafter referred to as "the City," and KENYON DISEND, PLLC, hereinafter referred to as "the Contractor," whose principal office is located in Issaquah, Washington. WHEREAS, the City has a need to have certain legal services performed for its citizens; and WHEREAS, the City desires to have the Contractor perform such services pursuant to certain terms and conditions; now, therefore, IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Scope and Schedule of Services to be Performed by Contractor. The Contractor shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Contractor shall at all times comply with all federal, state, and local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. Such local rules and ordinances shall include, but not be limited to, the City Code of Ethics, as set forth in Ordinance No. 2068. The Contractor shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. 2. Compensation and Method of Payment. The City shall pay the Contractor for services rendered according to the rates and methods set forth on Exhibit B attached hereto and incorporated herein by this reference. 3. Contractor Budget. The Contractor shall apply the funds received underthis Agreement within the maximum limits set forth in this Agreement. 4. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing January 1, 2019, and ending December31, 2020, unless soonerterminated pursuant to paragraph 8 of this Agreement. 5. Independent Contractor. Contractor and City agree that Contractor 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 Contractor nor any employee of Contractor shall be entitled to any Kenyon Disend 2019-2020 Page 1 of 7 27 benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. 6. Indemnification. The Contractor shall indemnify, defend and hold harmless the City, its officers, agents and employees, from and against any and all claims, losses or liability, including attorney's fees, arising from injury or death to persons or damage to property occasioned by any act, omission or failure of the Contractor, its officers, agents and employees, in performing the work required by this Agreement. With respect to the performance of this Agreement and as to claims against the City, its officers, agents and employees, the Contractor expressly waives its immunity under Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for injuries to its employees, and agrees that the obligation to indemnify, defend and hold harmless provided for in this paragraph extends to any claim brought by or on behalf of any employee of the Contractor. This waiver is mutually negotiated by the parties. This paragraph shall not apply to any damage resulting from the sole negligence of the City, its agents and employees. To the extent any of the damages referenced by this paragraph were caused by or resulted from the concurrent negligence of the City, its agents or employees, this obligation to indemnify, defend and hold harmless is valid and enforceable only to the extent of the negligence of the Contractor, its officers, agents, and employees. 7. Insurance. The Contractor shall procure and maintain in full force throughout the duration of this Agreement professional liability insurance with a minimum coverage of $1,000,000 per claim and $3,000,000 aggregate. Contractor shall provide evidence of such coverage in a manner and form acceptable to the City in the City's sole discretion. Cancellation of the required insurance shall automatically result in termination of this Agreement. 8. Termination. This Agreement may at any time be terminated by either party giving the other party thirty (30) days written notice of its intention to terminate the same. 9. Discrimination Prohibited. The Contractor shall not discriminate against any employee, applicant for employment, or any person seeking the services of the Contractor to be provided under this Agreement on the basis of race, color, religion, creed, sex, age, national origin, marital status or presence of any sensory, mental or physical handicap. 10. Assignment and Subcontract. The Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. 11. Entire Agreement. This Agreement contains the entire agreement between the parties hereto and no other Agreements, oral or otherwise, regarding the subject matter of this Agreement, shall be deemed to exist or bind any of the parties hereto. Either party may request changes in the agreement. Proposed changes which are mutually agreed upon shall be 28 Kenyon Disend 2019-2020 Page 2 of 7 incorporated by written amendments to this Agreement and with the consent of the City Council. 12. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk City of Tukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 Notices to the Contractor shall be sent to the address provided by the Contractor upon the signature line below. 13. Applicable Law; Venue; Attorney's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. DATED this day of , 2018. CITY OF TUKWILA CONTRACTOR: KENYON DISEND, PLLC By: By: Mayor Allan Ekberg ATTEST/AUTHENTICATED: Christy O'Flaherty, City Clerk Michael R. Kenyon Managing Member ADDRESS: 11 Front Street South Issaquah, Washington 98027 (425) 392-7090 Kenyon Disend 2019-2020 Page 3 of 7 29 EXHIBITA -- SCOPE OF SERVICES Contractor agrees to provide a level of service equal to or greater than the level of service provided by an in-house city attorney. In particular, Contractor agrees to: 1. Provide general city attorney services, which include but are not limited to: A. Attend regular meetings of the City Council and executive sessions scheduled for regular meetings of the City Council; B. Prepare or review ordinances, resolutions, contracts, interlocal agreements, and other city documents or materials as requested; C. Practice "preventative law" in the form of regular consultation with staff and elected officials, and maintenance of between 20 and 25 "office hours" each week at City Hall; D. Provide special classes and/or seminars for staff, elected officials, Boards, and Commissions on issues including, but not limited to, ethics, conflict of interest, and the appearance of fairness doctrine; E. Except as set forth in Section 3, defend litigation brought against the City; F. Defend or initiate administrative hearings involving the City including, but not limited to, drug forfeiture and seizure hearings, code enforcement, and similar matters; G. Such other general city attorney matters as are assigned; H. Comprehensive Internet and remote access capability, including e-mail, linking Contractor's office with City Hall; I. Oversight and coordination of the City Clerk's Office; and J. Provide legal advice relating to the Public Records Act and public records requests. 30 Kenyon Disend 2019-2020 Page 4 of 7 2. Attend Other Meetings as Requested. A. Attend special meetings of the City Council, meetings of the Committee of the Whole, other Committee meetings, and meetings of City Boards and Commissions upon request. Contractor shall be compensated for attendance at such meetings as set forth in paragraph 4 of Exhibit B. 3. Public Records Request Redaction and Processing. A. Review and redact records requested pursuant to public records requests and prepare exemption logs. Contractor shall be compensated for such services as set forth in paragraph 5 of Exhibit B. 4. Provide City Attorney services for litigation and contested administrative proceedings, which include but are not limited to: A. Initiation and defense of litigation and contested administrative proceedings on the City's behalf. Contractor shall be compensated for such litigation and contested administrative proceedings as Separate Matters under paragraph 2 of Exhibit B. 5. Provide Special Services, which include but are not limited to: A. Other specialized municipal law services, including but not limited to franchise negotiations; provided, however, that any such Special Services, other than franchise agreement negotiations, shall first be authorized by the City, and shall be subject to paragraph 3 of Exhibit B regarding compensation. 6. Provide paralegal services, which include but are not limited to: A. General paralegal support for the City Attorney. 7. It is understood and agreed that the City Attorney shall not provide private legal services to any employee of the City of Tukwila during the term of this agreement. Kenyon Disend 2019-2020 Page 5 of 7 31 EXHIBIT B -- COMPENSATION AND METHOD OF PAYMENT 1. For 2019-20, for all general city attorney services set forth in paragraph 1 of Exhibit A, Contractor shall be paid a flat monthly fee of $33,940.00, plus extraordinary expenses. Extraordinary expenses shall include court filing fees, deposition and other discovery costs, parking, mileage costs other than to and from City Hall or other locations within the City, and other similar expenses advanced by Contractor on City's behalf. Extraordinary expenses shall not include routine photocopying, fax, or long-distance telephone charges. 2. All litigation and administrative proceeding services set forth in paragraph 3 of Exhibit A shall be considered to be Separate Matters. Contractor shall maintain its current practice of providing individual monthly billing statements for each Separate Matter, and for all other work billed hourly pursuant to this Agreement. Separate Matters mean (a) each individual civil action filed by or against the City, except that multiple condemnation lawsuits related to the same project shall constitute only one Separate Matter, (b) all Code Enforcement matters conducted before the Hearing Examiner or in Court, but not including general code enforcement services which shall be included in Contractor's flat monthly fee, (c) all significant projects which require specialized knowledge and hours expended outside of the regular office hours for that attorney, including but not limited to franchise negotiations; and (d) all drug or other forfeiture matters collectively filed by or against the City. For each such Separate Matter, Contractor shall be paid its normal hourly rates for 2019 and 2020. Rates for 2019 shall be provided to the City by October 1, 2018. 3. Special Services, other than franchise agreement negotiations, shall first be approved by the City after negotiation regarding: (1) whether additional compensation is fair and equitable for such Special Services and, if so, (2) the amount and manner of payment (e.g., flat fee, hourly, other) for such Special Services. 4. Attendance at other meetings as requested, as set forth in paragraph 2 of ExhibitAshall be billed at Contractor's normal hourly rates for 2019 and 2020. 5. Public records request redaction and processing (including exemption logs) shall be billed at Contractor's normal hourly rates for 2019 and 2020. 32 Kenyon Disend 2019-2020 Page 6 of 7 KENYON DISEND, PLLC 2019 HOURLY RATE SCHEDULE FOR CITY ATTORNEY SERVICES ATTORNEYS: Michael R. Kenyon Kim Adams Pratt David A. Linehan Hillary E. Graber Rachel B. Turpin Eileen M. Keiffer Ann Marie Soto Charlotte A. Archer Alexandra L. Kenyon Of Counsel: Doug F. Mosich PARALEGALS: Margaret C. Starkey Sheryl A. Loewen Mary L. Maughan Terry T. Curran Antoinette M. Mattox $350.00 $300.00 $300.00 $230.00 $215.00 $215.00 $215.00 $215.00 $165.00 $300.00 $145.00 $130.00 $130.00 $130.00 $120.00 Kenyon Disend 2019-2020 Page 7 of 7 33 34 TO: Mayor's Office - David Cline, City Administrator Mayor Ekberg Finance & Safety Committee Allan Ekberg, Mayor FROM: David Cline, City Administrator DATE: October 26, 2018 SUBJECT: Sound Cities Association Lease Agreement ISSUE The current lease agreement with Sound Cities Association (SCA) expires on December 31, 2018. BACKGROUND Sound Cities Association (SCA) is a local non-profit corporation composed of member cities with a population of less than 150,000 people that act locally and partner regionally to create livable, vital communities through advocacy, education, leadership, mutual support and networking. SCA began leasing space from the City of Tukwila in 2006. The City of Tukwila is a member of SCA. DISCUSSION We are proposing a two-year lease agreement from January 1, 2019 - December 31, 2020 to coincide with the biennium budget cycle, as well as increasing rent by fifty cents a square foot for 2019 and an additional fifty cents per square foot for 2020 which is the equivalent of a 3 percent increase to the base rent each year. Per RCW 35A.11.010 and 35A.11.020 all lease agreements must go before City Council for authorization. FINANCIAL IMPACT The base rent for SCA will be $24,820.00 per year, to be paid in monthly installments of $2,068.33 in 2019 and $25,550.00 per year, to be paid in monthly installments of $2,129.17 in 2020. In addition to the base rent, SCA will pay leasehold excise tax pursuant to RCW 82.29A at the rate of 12.84 percent of the base rent in the amount of $265.57 per month in 2019 and $273.39 per month in 2020. Provisions also include internet services at a rate of $100.00 per month, payment of long distance and toll calls, and after-hours emergency callouts or mutually agreed upon project work at a flat rate of $150 an hour. RECOMMENDATION The Committee is being asked to move this item forward to the consent agenda of the November 19, 2018 City Council Meeting for approval and authorization for execution by the Mayor. ATTACHMENTS Draft Lease Agreement for 2019-2020 Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 35 36 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 LEASE AGREEMENT Agreement Number: THIS LEASE AGREEMENT is made between the City of Tukwila ("the City" or "Lessor") and Sound Cities Association ("Sound Cities Association" or "Lessee"). IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Premises. Lessor is the owner of the commercial property located at 6300 Southcenter Boulevard, Tukwila, Washington (the "Property"). Lessor does hereby agree to lease to Lessee, a portion of the Property consisting of approximately 1,460 rentable square feet (the "Premises"). The Premises do not include the exterior walls, roof, land beneath, pipes, ducts, conduits, wires, fixtures and equipment above the suspended ceiling, or any other portion of the Property or the buildings thereon. The City and Lessee agree that the Lessee's pro-rata share of the Property that the Premises are a part of is 3.45%, based on the ratio of the agreed rentable area of the Premises to the agreed rentable area of the entire Property as of the date of this Lease. 2. Term. This Agreement shall be in full force and effect for a period commencing January 1, 2019 and ending December 31, 2020, unless sooner terminated under the provisions set forth in Section 22. Upon termination of this Lease the Lessee shall surrender all keys and/or access cards to the City. 3. Possession. Lessee shall be deemed to have accepted possession of the Premises in an "as - is" condition. The City makes no representations to Lessee regarding the Premises including the structural condition of the Premises and the condition of all mechanical, electrical and other systems. Lessee shall be responsible for performing any work necessary to bring the Premises into condition satisfactory to Lessee. Lessee shall not engage in any improvements or alterations to the Premises without the express written consent of the City. 4. Rent. Base rent shall be set at $17.00 per square feet per year, or $24,820.00 per year, to be paid in monthly installments of $2,068.33 for the period of January 1, 2019 - December 31, 2019 and $17.50 per square feet per year, or $25,550.00 per year, to be paid in monthly installments of $2,129.17 for the period of January 1, 2020 - December 31, 2020. Rent shall be due on the first day of each month. If payment is not received by the fifth day of each month, Lessee shall be responsible for paying a late fee equivalent to five percent (5%) of the delinquent amount in addition to the past due payment. All delinquent sums not paid within thirty (30) days of the due date shall bear interest at the rate of twelve percent (12%) per annum. Interest on all delinquent amounts shall be calculated from the original due date to the date of payment. The City's acceptance of less than the full amount of any payment due Sound Cities Association 2019-2020 Lease Agreement Page 1 of 9 37 City of Tukwila sy y 6200 Southcenter Boulevard, Tukwila WA 98188 ° zo e Agreement Number: from Lessee shall not be deemed an accordance and satisfaction or compromise of such payment. 5. Leasehold Excise Tax. Lessee shall pay leasehold excise tax due pursuant to RCW 82.29A to Lessor by the first day of each month at the rate of 12.84% of the base rent set forth in Section 4 herein, such amount being $265.57 per month for January 1, 2019 - December 2019 and $273.39 per month for January 1, 2019 - December 31, 2020. The leasehold excise tax shall be paid in addition to the monthly rental payment and any other payments required under this Lease. If the State of Washington changes the leasehold excise tax, the tax payable by the Lessee each month under this Lease shall be correspondingly modified in compliance with RCW 82.29A without further action by the parties. 6. Use of Premises by Lessee. Lessee shall use the Premises for general office use. The Premises shall be used only for the uses specified herein and for not for any other business or purpose without the prior written consent of the City. No act shall be done on or around the Premises that is unlawful or that will increase the existing rate of insurance on the Premises or cause the cancellation of any insurance on the Premises. Lessee shall not commit or allow to be committed any waste upon the Premises or any public or private nuisance. Lessee shall not do or permit anything to be done on the Premises which will obstruct, cause injury or interfere with the rights of other tenants, or occupants of the Premises or their customers, clients and visitors. 7. Lessee Maintenance and Repair Responsibility. Lessee shall, when and if needed, at Lessee's sole expense, make repairs to the Premises and every part thereof; and Lessee shall maintain the Premises in a neat, clean, sanitary condition. Lessee shall surrender the Premises to the City in good condition upon the termination of this Lease, reasonable wear and tear expected. 8. Signage. Lessee shall obtain the City's written consent before installing any signs on the Premises and shall install any approved signage at Lessee's sole expense and in compliance with all applicable laws. Lessee shall not damage or deface the Premises when installing or removing signage and if any damage is done, Lessee shall repair any damage to the Premises caused by such installation or removal. 9. Utilities, Equipment and Services. The City shall provide the Premises with the following services, the cost of which shall be included in the rent paid by Lessee: water, electricity, and heating/cooling seven (7) days per week and janitorial services five (5) nights per week, exclusive of holidays. 3%ound Cities Association 2019-2020 Lease Agreement Page 2 of 9 w City of Tukwila 4s y y 6200 Southcenter Boulevard, Tukwila WA 98188 I.., Agreement Number: The Lessee shall pay the City $100 per month for internet service, payable on the first of each month along with rent. The City's Technology Services department shall provide the Lessee with basic technology support to maintain hardware equipment and software applications, such support being performed during the City's regular, non -holiday business hours of8:30 a.m. to 5:00 p.m. Any after-hours emergency callouts or mutually agreed upon project work will be billed in one - hour increments at a flat rate of $150/hour with a minimum charge of one hour. Charges will be invoiced upon completion of the work and will be payable upon receipt. The City shall provide six (6) extensions to the City phone system for use by the Lessee and will maintain the phone system at no additional cost to the Lessee. Lessee shall be responsible for all costs associated with long distance and other toll calls which will be billed separately by the City and will be payable upon receipt. On an annual basis, the Lessee shall provide an inventory list to the City detailing hardware equipment and software utilized by the Lessee. Any hardware equipment or software requested for purchase by the City to update the Lessee's inventory will be billed to the Lessee at actual cost. Any hardware equipment or software purchased by the Lessee shall be reviewed by the City's Technology and Innovation Service Center for system compatibility and supportability prior to purchase and installation. Virus checking software and that has been approved by the City's Technology and Innovation Service Center is mandatory on all Lessee computers, laptops and servers in use by the Lessee. Any virus signature files released by the virus checking software company shall be set to automatically update to keep the Lessee's software updated to the latest version available. A data backup program approved by the City's Technology and Innovation Service Center is mandatory and will be configured to automatically back up any of the Lessee's server -based live, primary data. Data that is stored only locally (on computers, laptops, phones, tablets) will NOT be backed up nor monitored at the Lessee's own risk. The performance of the backup program will be monitored and tested on a quarterly basis by both parties. 10. Destruction of Premises. If the Premises are completely or partially destroyed by fire or other casualty, of if they are damaged by an uninsured casualty, or by an insured casualty to such an extent that the damage cannot be repaired within sixty (60) days of the occurrence, the City shall have the option to restore the Premises or to terminate this Agreement on thirty (30) days written notice, effective as of any date not more than sixty (60) days after the occurrence. If this Section becomes applicable, the City shall advise the Lessee within thirty (30) days after such casualty whether the City elects to restore the Premises or to terminate Sound Cities Association 2019-2020 Lease Agreement Page 3 of 9 39 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: this Agreement. If the City elects to restore the Premises, it shall commence and complete the restoration work with due diligence. For the period from the date of the casualty until completion of the repairs (or the date of termination of this Agreement, if the City elects not to restore the Premises) the monthly base rent shall be abated in the same proportion that the untenantable portion of the Premises bears the whole thereof, unless the casualty results from Lessee's negligence or its breach of obligations under this Agreement. 11. Hazardous Substances. Lessee shall not generate, release, spill, store, deposit, transport or dispose of (collectively "Release") any hazardous substances, sewage, petroleum products, radioactive substances, medicinal, bacteriological, or disease -producing substances, hazardous materials, toxic substances or any pollutants or substances defined as hazardous or toxic in accordance with applicable federal, state and local laws and regulations in any reportable quantities (collectively "Hazardous Substances") in, on or about the Premises. Lessee shall attach a separate list of Hazardous Substances they propose to store on site and the City must accept the list in writing or Hazardous Substances cannot be stored on site. The Lessee shall indemnify, hold harmless and defend the City from any and all claims, liabilities, losses, damages, clean-up costs, response costs and expenses, including reasonable attorneys' fees, arising out of or in any way related to the Release by the Lessee or any of its agents, representatives or employees, or to the presence of such Hazardous Substances in, on or about the Premises occurring at any time after the effective date of this Agreement to the full extent of the Lessee's liability. 12. Alterations and Additions. After obtaining the prior written consent of the City, Lessee may make, at its sole expense, such additional improvements or alterations to the Premises which it may deem necessary or desirable. An repairs or new construction done by Lessee shall be done in conformity with plans and specifications approved by the City. All work performed shall be done in a workmanlike manner and shall become the property of the City. 13. Liens. Lessee shall keep the Premises free from any liens arising out of any work performed, materials furnished, or obligations incurred by Lessee. 14. Insurance. The Lessee shall procure and maintain in full force throughout the duration of this Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the Lessee's operation and use of the leased Premises. Lessee's maintenance of insurance as required by this Agreement shall not be construed to limit the liability of the Lessee to the coverage provided by such insurance, or otherwise limit the City's recourse to remedy available under law or in equity. a. Minimum Scope of Insurance. The Lessee shall obtain insurance of the types described below: 4Ctound Cities Association 2019-2020 Lease Agreement Page 4 of 9 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: i. Commercial General Liability insurance shall be at least as broad as Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The Public Entity shall be named as additional an insured on Lessee's Commercial General Liability insurance policy using ISO Additional Insured - Managers or Lessors of Premises Form CG 2011 or a substitute endorsement providing at least as broad coverage. ii. Property insurance shall be written on an all risk basis. b. Minimum Amounts of Insurance. Lessee shall maintain the following insurance limits: i. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. ii. Property insurance shall be written covering the full value of the Lessee's property and improvements with no coinsurance provisions. c. Other Insurance Provisions. The Lessee's Commercial General Liability insurance policy or policies are to contain or be endorsed to contain that they shall be primary insurance as respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of the Lessee's insurance and shall not contribute with it. d. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M Best rating of not less than A: VII. e. Verification of Coverage. Lessee shall furnish the City with original certificates and a copy of any applicable amendatory endorsements including, but not necessarily limited to, the additional insured endorsement evidencing the insurance requirements of the Lessee. f. Waiver of Subrogation. Lessee and the City hereby release and discharge each other from all claims, losses, and liabilities arising from or caused by any hazard covered by property insurance on or in connection with the Premises or said building. This release shall apply only to the extent that such claim, loss or liability is covered by insurance. g. City's Property Insurance. The City shall purchase and maintain during the term of this Lease, all-risk property insurance covering the Building for full replacement value without any coinsurance provisions. h. Notice of Cancellation. The Lessee shall provide the City with written notice of any policy cancellation, within two (2) business days of receiving such notice. i. Failure to Maintain Insurance. Failure on the part of the Lessee to maintain the required insurance shall constitute a material breach of this Lease upon which the City may, after Sound Cities Association 2019-2020 Lease Agreement Page 5 of 9 41 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: giving five (5) business days notice to the Lessee to correct the breach, terminate this Lease or, at its discretion, procure or renew such insurance and pay and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand. 15. Indemnification and Hold Harmless. Lessee shall indemnify, defend and hold harmless the City, its officers, officials, employees and volunteers, from and against any and all claims, suits, actions, losses or liability, arising from injury or death to persons or damage to property, which arise out of Lessee's use of Premises, or from the conduct of Lessee's business or from any activity or work permitted or suffered by Lessee in or about the Premises except only such injury or damage as shall have been occasioned by the sole negligence of the City. 16. Assignment and Subletting. Lessee shall not assign this Lease or sublet any portion of the Premises. Any sublease or assignment made in violation of this provision shall be void. 17. Default. Failure by Lessee to observe or perform any of the covenants, conditions or provisions of this Lease, where such failure shall continue for a period of ten (10) days after written notice from the City to cure the default, shall constitute a default and breach of this Lease. Lessee shall notify the City promptly of any default not by its nature necessarily known to the City. 18. Access. After reasonable notice from the City (except in the cases of emergency where no notice is required) the Lessee shall permit the City and its agents, employees and contractors to enter the Premises at all reasonable times to make repairs, alterations, improvements or inspections. This section shall not impose any repair or other obligation upon the City not expressly stated elsewhere in this Agreement. 19. Compliance with Laws, Rules and Regulations. Lessee shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may hereafter be in force relation to or affecting the conditions, use, or occupancy of the leased premises. Lessee shall faithfully observe and comply with City rules and regulations. 20. Permits. Lessee shall, at its sole cost and expense, be responsible for obtaining any required permits and licenses necessary to perform the work and covenants of this Lease. 21. Notices. All notices under this Lease shall be in writing and shall be effective when mailed by certified mail or delivered to the addresses listed below. Notices to Lessor shall be sent to: Notices to Lessee shall be sent to: 42Sound Cities Association 2019-2020 Lease Agreement Page 6 of 9 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 City of Tukwila ATTN: Mayor's Office 6200 Southcenter Boulevard Tukwila WA 98188 Agreement Number: Sound Cities Association ATTN: Deanna Dawson, Executive Director 6300 Southcenter Blvd, Suite 206 Tukwila WA 98188 22. Termination. Either party may terminate this Agreement if the other party is in default as outlined in Section 17 or at any time on or before the expiration of this Lease by providing a minimum of thirty (30) days written notice to the other party. 23. Applicable Law; Venue: Attorneys' Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorneys' fees and costs of suit. 24. Authority of Lessee. The Lessee and the individual executing this Lease on behalf of the Lessee represent and warrant that s/he is duly authorized to execute and deliver this Lease and upon execution this Lease is binding upon the Lessee in accordance with the terms herein. 25. Waiver and Forbearance. No waiver by the City of any breach or default by the Lessee of any of its obligations or covenants herein shall be deemed to be a waiver of any subsequent breach or default of the same or any other obligation or covenant, nor shall forbearance by the City to seek remedy for any break or default of the Lessee be deemed a waiver by the City of its rights and remedies with respect to such breach or default. 26. Entire Agreement - Modification. This Lease Agreement together with all exhibits or addenda expressly incorporated herein by reference and attached hereto shall constitute the whole agreement between the parties. There are no terms, obligations, covenants or conditions other than those contained herein. Except as otherwise provided, no modification or amendment of this Lease Agreement shall be valid or effective unless evidenced by an agreement in writing signed by both parties. Sound Cities Association 2019-2020 Lease Agreement Page 7 of 9 43 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: 27. Severability and Survival. If any term, condition or provision of this Lease is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. CITY OF TUKWILA SOUND CITIES ASSOCIATION By: By: Allan Ekberg Deanna Dawson Mayor Executive Director Attest: By: Christy O'Flaherty, City Clerk Approved as to form: By: City Attorney STATE OF WASHINGTON COUNTY OF KING ss. I certify that I know or have satisfactory evidence that Allan Ekberg is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Mayor of the City of Tukwila to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated this day of , 2018. (Print Name) Residing at [Stamp or Seal] My appointment expires 44Sound Cities Association 2019-2020 Lease Agreement Page 8 of 9 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 STATE OF WASHINGTON ss. COUNTY OF KING Agreement Number: I certify that I know or have satisfactory evidence that Deanna Dawson is the person who appeared before me, and said person acknowledged that she signed this instrument, on oath stated that she was authorized to execute the instrument and acknowledged it the Executive Director of Sound Cities Association to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated this day of , 2018. [Stamp or Seal] Notary Public for Washington (Printed or Stamped Name of Notary) Residing at My appointment expires: Sound Cities Association 2019-2020 Lease Agreement Page 9 of 9 45 46 Allan Ekberg, Mayor a TO: Mayor's Office - David Cline, City Administrator Mayor Ekberg Finance & Safety Committee FROM: David Cline, City Administrator DATE: October 26, 2018 SUBJECT: Alliance One Lease Agreement ISSUE The current lease agreement with Alliance One Management Receivables expires on December 31, 2018. BACKGROUND Alliance One is the company Tukwila Municipal Court contracts with to provide collection services for unpaid court fines and fees and manages long-term payment plans for court customers not in collections. In May 2009, Alliance One began leasing space with the City of Tukwila. Per RCW 35A.11.010 and 35A.11.020 all lease agreements must go before City Council for authorization. DISCUSSION We are proposing a two-year lease agreement from January 1, 2019 - December 31, 2020 to coincide with the biennium budget cycle, as well as a 3.33 percent increase ($30/month) in the monthly rent. FINANCIAL IMPACT The 3.33 percent increase in rent means Alliance One would pay the City of Tukwila $930.00 a month to lease space in the court area. In addition to the monthly rent, Alliance One will pay leasehold excise tax pursuant to RCW 82.29A at the rate of 12.84 percent of the monthly rent in the amount of $119.41 per month. RECOMMENDATION The Committee is being asked to move this item forward to the consent agenda of the November 19, 2018 City Council Meeting for approval and authorization for execution by the Mayor. ATTACHMENTS Draft Lease Agreement for 2019-2020 Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 47 48 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 LEASE AGREEMENT Agreement Number: THIS LEASE AGREEMENT is made between the City of Tukwila ("the City" or "Lessor") and Alliance One Receivables Management, Inc. ("Alliance" or "Lessee"). IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Premises. Lessor is the owner of the commercial property located at 6200 Southcenter Boulevard, Tukwila, Washington (the "Property"). Lessor does hereby agree to lease to Lessee, upon the following terms and conditions, a portion of the Property consisting of one (1) front counter workspace at the Tukwila Municipal Court located at 6200 Southcenter Boulevard, Tukwila, Washington (the "Premises"). Term. This Agreement shall be in full force and effect for a period commencing January 1, 2019 and ending December 31, 2020 unless sooner terminated under the provisions hereinafter specified. 2. Rent. Lessee covenants and agrees to pay Lessor, at Lessor's address, without deduction or offset, rent in the amount of Nine Hundred Dollars ($930.00) per month ("Rental Payment"). The Rental Payment shall be submitted to Lessor on a monthly basis, due by the first day of each month. If payment is not received by the fifth day of each month, Lessee shall be responsible for paying a late fee equivalent to five percent (5%) of the delinquent amount in addition to the past due payment. All delinquent sums not paid within thirty (30) days of the due date shall bear interest at the rate of twelve percent (12%) per annum. Interest on all delinquent amounts shall be calculated from the original due date to the date of payment. The City's acceptance of less than the full amount of any payment due from Lessee shall not be deemed an accordance and satisfaction or compromise of such payment. Any and all ancillary costs associated with Lessee's use of the Premises shall be borne by Lessee. 3. Leasehold Excise Tax. Lessee shall pay leasehold excise tax due pursuant to RCW 82.29A to Lessor by the first day of each month at the rate of 12.84% of the rental amount, which amounts to $119.41 per month. The leasehold excise tax shall be paid on the first day of each month in addition to the monthly Rental Payment. If the State of Washington changes the leasehold excise tax, the tax payable by the Lessee shall be correspondingly modified in compliance with RCW 82.29A, without further action by the Parties. 4. Use of Premises by Lessee. Lessee shall have exclusive use of the Premises for payment collection and shall provide its own personnel to staff the Premises between 8:30 a.m. and 4:30 Alliance One Lease Agreement Page 1 of 6 49 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: p.m., Monday through Friday. Lessee's personnel at the Premises shall provide customer service at a level satisfactory to the Lessor. Lessor reserves the right to immediately terminate this Lease Agreement should the Lessee's customer service levels fail to meet the standards set by Lessor. 5. Utilities, Equipment and Services. Lessee shall provide daily armored car service, Monday through Friday, to transport deposits from the Premises, the cost of which shall be borne by Lessee. Lessee shall provide any equipment necessary for the prescribed use of the Premises, including, but not limited to, computers, fax/copy machines and telephones. Lessee shall be responsible for setting up and maintaining its own telephone and internet connections. 6. Signage. Lessee shall provide, at its own expense, signage to be placed at the Premises; all signage shall be pre -approved by Lessor before being posted on the Premises. Lessee shall not damage or deface the Premises when installing or removing signage and if any damages to the Premises are caused by such installation or removal they shall be promptly repaired by Lessee at Lessee's sole expense. 7. Assignment and Subletting. Lessee shall not assign this Lease or sublet any portion of the Premises. Any sublease or assignment made in violation of this provision shall be void. 8. Insurance. The Lessee shall procure and maintain in full force throughout the duration of this Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the Lessee's operation and use of the Premises. Lessee's maintenance of insurance as required by this Agreement shall not be construed to limit the liability of the Lessee to the coverage provided by such insurance, or otherwise limit the City's recourse to remedy available under law or in equity. a. Minimum Scope of Insurance. The Lessee shall obtain insurance of the types described below: i. Commercial General Liability insurance shall be at least as broad as Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The Public Entity shall be named as additional an insured on Lessee's Commercial General Liability insurance policy using ISO Additional Insured -Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement providing at least as broad coverage. ii. Property insurance shall be written on an all risk basis. b. Minimum Amounts of Insurance. Lessee shall maintain the following insurance limits: i. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. 5/bIiance One Lease Agreement Page 2 of 6 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: ii. Property insurance shall be written covering the full value of the Lessee's property and improvements with no coinsurance provisions. c. Other Insurance Provisions. The Lessee's Commercial General Liability insurance policy or 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 in excess of the Lessee's insurance and shall not contribute with it. d. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M Best rating of not less than A: VII. e. Verification of Coverage. Lessee shall furnish the City with original certificates and a copy of any applicable amendatory endorsements, including, but not limited to, the additional insured endorsement, evidencing the insurance requirements of the Lessee. f. Waiver of Subrogation. Lessee and the City hereby release and discharge each other from all claims, losses, and liabilities arising from or caused by any hazard covered by property insurance on or in connection with the premises or said building. This release shall apply only to the extent that such claim, loss or liability is covered by insurance. g. City's Property Insurance. The City shall purchase and maintain during the term of the Lease, all-risk property insurance covering the Premises for full replacement value without any coinsurance provisions. h. Notice of Cancellation. The Lessee shall provide the City with written notice of any policy cancellation, within two (2) business days of receiving such notice. i. Failure to Maintain Insurance. Failure on the part of the Lessee to maintain the required insurance shall constitute a material breach of this Lease upon which the City may, after giving five (5) business days' notice to the Lessee to correct the breach, terminate this Lease or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand. 9. Indemnification and Hold Harmless. Lessee shall indemnify, defend and hold harmless the Lessor, its officers, agents and employees, from and against any and all claims, losses or liability, including attorneys' fees, arising from injury or death to persons or damage to property occasioned by any act, omission or failure of Lessee, its officers, agents, employees, customers, and guests, in performing the work required by this Agreement. With respect to the performance of this Agreement as to claims against Lessor, its officers, agents and employees, Lessee Alliance One Lease Agreement Page 3 of 6 51 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: expressly waives its immunity under Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for injuries to its employees, and agrees that the obligation to indemnify, defend and hold harmless provided for in this paragraph extends to any claim brought by or on behalf of any employee or Lessee. This waiver is mutually negotiated by the parties. This paragraph shall not apply to any damages resulting from the sole negligence of the Lessor, its agents or employees. To the extent that any of the damages referenced by this paragraph were caused by or resulted from the concurrent negligence of Lessor, its agents or employees, this obligation to indemnify, defend and hold harmless is valid and enforceable only to the extent of the negligence of Lessee, its officers, agents, employees, customers, and guests. 10. Indemnification and Hold Harmless. Lessee shall indemnify, defend and hold harmless the City, its officers, officials, employees and volunteers, from and against any and all claims, suits, actions, losses or liability, arising from injury or death to persons or damage to property, which arises out of Lessee's use of Premises, or from the conduct of Lessee's business or from any activity or work permitted or suffered by Lessee in or about the Premises except only such injury or damage as shall have been occasioned by the sole negligence of the City. 11. Holding Over. Any holding over on the Premises after the termination of the term of this Lease shall be construed to be a tenancy from month -to -month with the same valuable consideration for rent being provided on a pro-rata basis per month. Such holding over shall otherwise be on all the terms and conditions of this Lease Agreement. 12. Notices. Notices to Lessor shall be sent to the following address: City of Tukwila Attention: City Clerk 6200 Southcenter Boulevard Tukwila WA 98188 Notices to Lessee shall be sent to the following address: Alliance One Receivables, Inc. Tera Cappa-Bachaud, Client Service Manager PO Box 11641 Tacoma WA 98411 13. Entire Agreement - Modifications. This Lease Agreement together with all exhibits or addenda expressly incorporated herein by reference and attached hereto shall constitute the whole agreement between the parties. There are no terms, obligations, covenants or conditions other 5liance One Lease Agreement Page 4 of 6 Wq City of Tukwila sy y 6200 Southcenter Boulevard, Tukwila WA 98188 =o s Agreement Number: than those contained herein. Except as otherwise provided, no modification or amendment of this Lease Agreement shall be valid or effective unless evidenced by an agreement in writing signed by both parties. 14. Termination. Lessor or Lessee may terminate this Lease at any time on or before the expiration of the Lease term upon thirty (30) days prior written notice to the other party. 15. Applicable Law - Venue: Attorneys' Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding s instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorneys' fees and costs of suit. DATED this day of _ , 2018 CITY OF TUKWILA ALLIANCE ONE RECEIVABLES, INC. Allen Ekberg, Mayor Harry Neerenberg, Vice President/CFO ATTEST/AUTHENTICATED City Clerk APPROVED AS TO FORM: By: City Attorney Alliance One Lease Agreement Page 5 of 6 53 City of Tukwila Agreement Number: 6200 Southcenter Boulevard, Tukwila WA 98188 STATE OF WASHINGTON ss. COUNTY OF KING I certify that I know or have satisfactory evidence that Allan Ekberg is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Mayor of the City of Tukwila to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated this day of , 2018. (Print Name) Residing at [Stamp or Seal] My appointment expires STATE OF WASHINGTON COUNTY OF KING ) ss. I certify that I know or have satisfactory evidence that Harry Neerenberg is the person who appeared before me, and said person acknowledged that she signed this instrument, on oath stated that she was authorized to execute the instrument and acknowledged it the Executive Director of Sound Cities Association to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated this day of , 2018. [Stamp or Seal] Notary Public for Washington (Printed or Stamped Name of Notary) Residing at My appointment expires: 4liance One Lease Agreement Page 6 of 6 �.• TO: FROM: BY: City of Tukwila INFORMATIONAL MEMORANDUM Finance Committee Peggy McCarthy, Finance Director Vicky Carlsen, Deputy Finance Director Aaron Williams, Fiscal Coordinator CC: Mayor Ekberg DATE: November 6, 2018 SUBJECT: 2019 Property Tax Levy ISSUE Approval of ordinances increasing the regular levy from the previous year and adopting the general and excess property tax levies for 2019 by November 30, 2018. Allan Ekberg, Mayor BACKGROUND A Public Hearing for adoption of the 2019 property tax levy is required by RCW 84.55.120. The Hearing is scheduled for November 13, 2018. The City was notified on October 23, 2018 that the assessed value for Tukwila for 2019 is projected to be $6,709,378,301. The ordinance to set the general tax levy also includes the excess levy related to the Public Safety Plan that voters approved on the November 8, 2016 general election. The City sold $36.5 million of bonds in 2016 and debt service repayment began in 2017. The excess levy will be assessed for as long as the bonds are outstanding; the final payment is scheduled for December 2036. The total excess levy requirement for 2019 is $2,840,000 with an approximate levy rate of $0.43 per thousand. The budget proposed to Council for the 2019-2020 biennium is based, in part, on a property tax revenue increase of 1% plus new construction. DISCUSSION Levy Amount The assessed value and the allowable levy are subject to change until final levy rate determination. A levy amount of $16,100,000 will be used for the ordinance. If the final allowable levy is less than the ordinance amount, King County Department of Assessments will adjust the ordinance amount to the final allowable levy amount and no further action by the Council will be required. Also included in the tax levy ordinance is an excess levy in the amount of $2,840,000 for debt service related to the unlimited tax obligation bonds that were sold at the end of 2016. Total bonds issued was $36.5 million. 55 INFORMATIONAL MEMO Page 2 Levy Limit RCW 27.12.390 allows for a maximum statutory levy rate for cities at $3.60 less the actual regular levy made by a library district. RCW 41.16.060 also allows for an additional levy of $0.225 if a city has a firemen's pension fund. The maximum allowable levy for 2019 is estimated to be $3.49003. However, due to the 1% limitation, the Levy Limit Worksheet received from King County estimates the City's preliminary levy rate for 2019 at $2.37331. RECOMMENDATION The City Council is being asked to approve the ordinance adopting the General Tax Levy and the ordinance showing the dollar and percent increase from the previous year at the November 13, 2018 Committee of the Whole meeting and subsequent November 19, 2018 Regular Meeting. A public hearing has also been scheduled at the November 13, 2018 Committee of the Whole. ATTACHMENTS Draft Ordinances Preliminary Levy Limit Worksheet-2019 Tax Roll 56 Z:\Council Agenda Items\Finance111.6 FinancelInfo Memo - 2019 Taxes with Excess levy.docx AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, LEVYING THE GENERAL TAXES FOR THE CITY OF TUKWILA IN KING COUNTY FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2019, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN SAID CITY, THAT IS SUBJECT TO TAXATION FOR THE PURPOSE OF PAYING SUFFICIENT REVENUE TO CARRY ON THE SERVICES OF THE SEVERAL DEPARTMENTS OF SAID CITY FOR THE ENSUING YEAR, WITH AN EXCESS PROPERTY TAX LEVY FOR THE PURPOSE OF PAYING DEBT SERVICE ON THE CITY'S UNLIMITED TAX GENERAL OBLIGATION BONDS ISSUED IN 2016, AS REQUIRED BY LAW; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Tukwila has considered the City's anticipated financial requirements for 2019 and the amounts necessary and available to be raised by ad valorem taxes on real, personal and utility property; and WHEREAS, the following sentence is provided for information only: The maximum Statutory Levy Rate for the City of Tukwila, as allowed by RCW 84.52.043, is $3.490, which includes $0.225 for the Firemen's Pension Fund as allowed by RCW 41.16.060; and WHEREAS, the City, pursuant to Ordinance No. 2514, passed on November 21, 2016, authorized the issuance and sale of $36,500,000 principal amount of the City's Unlimited Tax General Obligation Bonds, 2016 (the "Bonds"); and has determined that to provide the money necessary to pay the debt service requirements on the Bonds in the year 2019, an excess property tax levy in the amount of $2,840,000 for the Bonds must be levied in year 2018, and collected in year 2019; and WHEREAS, the final assessed valuation calculation has been determined; W: Word Processing\Ordinances\General Tax Levy + Excess Levy 10-12-18.doc AW:bjs Page 1 of 3 57 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Regular and Excess Tax Levy. A. There shall be and hereby is levied on all real, personal and utility property in the City of Tukwila, in King County, whose estimated assessed valuation is $6,709,378,301, current taxes for the ensuing year commencing January 2019, in the amounts specified below: Regular Tax Levy Excess Tax Levy Rate Amount $2.37 $16,100,000 $0.43 $ 2,840,000 B. The said taxes herein provided for are levied for the purpose of payment upon the general bonded indebtedness of the City of Tukwila, the General Fund, and for the maintenance of the departments of the municipal government of the City of Tukwila for the fiscal year beginning January 1, 2019. C. The excess levy is levied for the purpose of debt service payments on the unlimited tax obligation bonds sold to finance costs related to the City's Public Safety Plan, as submitted to the qualified electors of the City at a special election held on November 8, 2016. Section 2. Collection. This ordinance shall be certified to the proper County officials, as provided by law, and taxes here levied shall be collected to pay to the Finance Director of the City of Tukwila at the time and in the manner provided by the laws of the State of Washington for the collection of taxes for non -chartered code cities. Section 3. 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 4. 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 5. 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 and effect January 1, 2019. W: Word Processing\Ordinances\General Tax Levy + Excess Levy 10-12-18.doc 58 AW:bjs Page 2 of 3 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: W: Word Processing\Ordinances\General Tax Levy + Excess Levy 10-12-18.doc AW:bjs Page 3 of 3 59 60 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, INCREASING THE CITY OF TUKWILA REGULAR LEVY FROM THE PREVIOUS YEAR, COMMENCING JANUARY 1, 2019, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN COMPLIANCE WITH RCW 84.55.120; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila has properly given notice of a public hearing held on November 13, 2018, pursuant to RCW 84.55.120; and WHEREAS, after such hearing and after duly considering all relevant evidence and testimony presented, the City Council has determined that in order to discharge its expected expenses and obligations the City requires an increase in property tax revenue from the previous year, in addition to the increase resulting from the addition of new construction and improvements to property and any increase in the value of State -assessed property; and WHEREAS, the City Council has determined it is in the City's best interest and necessary to meet its expenses and obligations for the property tax revenue to be increased for 2019, and the final assessed valuation calculation has been determined; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. An increase in the regular property tax levy, in addition to any amount resulting from the addition of new construction and improvements to property and any increase in the value of State -assessed property, is hereby authorized for the 2019 levy in the amount of $128,824, which is a percentage increase of 0.85% from the previous year. This increase is exclusive of additional revenue resulting from new construction, improvements to property, any increase in the value of State -assessed property, any annexations that have occurred and refunds made. W: Word Processing\Ordinances\Regular Tax Levy Increase 10-12-18 AW: bjs Page 1 of 2 61 Section 2. 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 3. 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 4. 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 and effect January 1, 2019. 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: W: Word Processing\Ordinances\Regular Tax Levy Increase 10-12-18 62 AW:bjs Page 2 of 2 LEVY LIMIT WORKSHEET 2019 Tax Roll TAXING DISTRICT: City of Tukwila The following determination of your regular levy limit for 2019 property taxes is provided by the King County Assessor pursuant to RCW 84.55.100. Annexed to Library District Using Limit Factor For District 15,138, 333 1.0100 15,289,716 241, 886, 848 0 241, 886, 848 2.46282 595,724 15,885,440 (Note 1) Estimated Library rate: 0.33497 Calculation of Limit Factor Levy Levy basis for calculation: (2018 Limit Factor) (Note 2) x Limit Factor = Levy Local new construction + Increase in utility value (Note 3) = Total new construction x Last year's regular levy rate = New construction levy Total Limit Factor Levy Using Implicit Price Deflator 15,138, 333 1.0217 15,466,683 241, 886, 848 0 241, 886, 848 2.46282 595,724 16,062,407 0 15,885,440 6,709,378,301 2.36765 0 0 Annexation Levy Omitted assessment levy (Note 4) Total Limit Factor Levy + new lid lifts Regular levy assessed value less annexations = Annexation rate (cannot exceed statutory maximum rate) x Annexation assessed value = Annexation Levy 0 16,062,407 6,709,378,301 2.39402 0 0 0 15,885,440 15,885,440 38,002 15,923,442 15,923,442 2.37331 15,160,892 128,824 0.85% Lid lifts, Refunds and Total + First year lid lifts + Limit Factor Levy = Total RCW 84.55 levy + Relevy for prior year refunds (Note 5) = Total RCW 84.55 levy + refunds Levy Correction: Year of Error (+or-) ALLOWABLE LEVY (Note 6) Increase Information (Note 7) Levy rate based on allowable levy Last year's ACTUAL regular levy Dollar increase over last year other than N/C — Annex Percent increase over last year other than N/C — Annex 0 16,062,407 16,062,407 38,002 16,100,409 16,100,409 I 2.39969 15,160, 892 305,791 2.02% Calculation of statutory levy Regular levy assessed value (Note 8) x Maximum statutory rate = Maximum statutory levy +Omitted assessments levy =Maximum statutory levy Limit factor needed for statutory levy ALL YEARS SHOWN ON THIS FORM ARE THE YEARS IN WHICH THE TAX IS PAYABLE. Please read carefully the notes on the reverse side. 10/31/18 9:58 AM LevyLimitWS.doc 6,709,378,301 3.49003 23,415,932 0 23,415,932 Not usable 63 Notes: 1) Rates for fire districts and the library district are estimated at the time this worksheet is produced. Fire district and library district rates affect the maximum allowable rate for cities annexed to them. These rates will change, mainly in response to the actual levy requests from the fire and library districts. Hence, affected cities may have a higher or lower allowable levy rate than is shown here when final levy rates are calculated. 2) This figure shows the maximum allowable levy, which may differ from any actual prior levy if a district has levied less than its maximum in prior years. The maximum allowable levy excludes any allowable refund levy if the maximum was based on a limit factor. The maximum allowable levy excludes omitted assessments if the maximum was determined by your district's statutory rate limit. If your district passed a limit factor ordinance in the year indicated, that limit factor would help determine the highest allowable levy. However, if the statutory rate limit was more restrictive than your stated limit factor, the statutory rate limit is controlling. 3) Any increase in value in state -assessed property is considered to be new construction value for purposes of calculating the respective limits. State -assessed property is property belonging to inter -county utility and transportation companies (telephone, railroad, airline companies and the like). 4) An omitted assessment is property value that should have been included on a prior year's roll but will be included on the tax roll for which this worksheet has been prepared. Omits are assessed and taxed at the rate in effect for the year omitted (RCW 84.40.080-085). Omitted assessments tax is deducted from the levy maximum before calculating the levy rate for current assessments and added back in as a current year's receivable. 5) Administrative refunds under RCW 84.69.020 were removed from the levy lid by the 1981 legislature. 6) A district is entitled to the lesser of the maximum levies determined by application of the limit under RCW 84.55 and the statutory rate limit. Levies may be subject to further proration if aggregate rate limits set in Article VII of the state constitution and in RCW 84.52.043 are exceeded. 7) This section is provided for your information, and to assist in preparing any Increase Ordinance that may be required by RCW 84.55.120. The increase information compares the allowable levy for the next tax year with your ACTUAL levy being collected this year. The actual levy excludes any refund levy and expired temporary lid lifts, if applicable. New construction, annexation and refund levies, as well as temporary lid lifts in their initial year, are subtracted from this year's allowable levy before the comparison is made. 8) Assessed valuations shown are subject to change from error corrections and appeal board decisions recorded between the date of this worksheet and final levy rate determination. 10/31/18 9:58 AM 64 LevyLimitWS.doc TO: FROM: BY: City of Tukwila INFORMATIONAL MEMORANDUM Finance Council Committee Peggy McCarthy, Finance Director Vicky Carisen, Deputy Finance Director CC: Mayor Ekberg DATE: October 31, 2018 SUBJECT: 2019 — 2020 Biennial Budget Ordinance 2019 — 2024 Financial Planning Model and Capital Improvement Program Allan Ekberg, Mayor ISSUE Adopt the 2019 — 2020 biennial budget and the 2019 — 2024 Capital Improvement Program (CIP) by the end of December. BACKGROUND The proposed biennial budget for 2019 — 2020 and draft 2019 — 2024 CIP were presented to Council on October 1, 2018. Departments within the general fund and all other funds have been reviewed in Council Committees and at the Council Committee of the Whole. Additionally, Council held budget workshops on September 9 and October 24, 2018, to discuss both the budget and CIP. Additional workshops may be scheduled before final adoption. DISCUSSION At this time the proposed 2019 — 2020 biennial budget as well as the 2019 — 2024 CIP is being presented to the Finance Committee for review and discussion. The public hearing, another opportunity for community input, is scheduled for Tuesday, November 13, 2018. The ordinance and resolution are in draft form and will be updated prior to final adoption if any changes are made to either the proposed biennial budget or the CIP. RECOMMENDATION The Finance Committee is being asked to approve the 2019 — 2020 biennial budget ordinance and the 2019 — 2024 Financial Planning Model and Capital Improvement Plan resolution and forward to the Committee of the Whole. This item is currently scheduled for the November 13, 2018, Committee of the Whole and November 19, 2018, Regular Council meeting. ATTACHMENTS Draft Budget Ordinance Reconciliation of 2019 — 2020 Budget Summary to Ordinance Draft CIP Resolution 65 66 [;ti AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; ADOPTING THE BIENNIAL BUDGET OF THE CITY OF TUKWILA FOR THE 2019-2020 BIENNIUM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the preliminary budget of the City of Tukwila for the 2019-2020 biennium was submitted to the City Council in a timely manner for their review; and WHEREAS, a Public Hearing on the proposed budget was advertised and held on November 13, 2018; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council hereby adopts the document entitled "City of Tukwila 2019- 2020 Budget," incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.34.120. Section 2. The totals of the estimated revenues and appropriations for each separate fund and the aggregate totals are as follows: W: Word Processing\OrdinancesWdopt 2019-2020 Biennial Budget 10-29-18 VC:bjs Page 1 of 3 67 Fund 000 General 105 Contingency 101 Hotel/Motel 103 City Street 104 Arterial Street 109 Drug Seizure Fund 2XX LTGO Debt Service Funds 213 Unlimited Tax G.O. Bonds 206 LID Guaranty 233 2013 LID 301 Land Acquisition, Recreation & Park Dev. 302 Facility Replacement 303 General Government Improvements 304 Fire Improvements 305 Public Safety Plan 306 City Facilities 401 Water 402 Sewer 411 Foster Golf Course 412 Surface Water 501 Equipment Rental 502 Insurance Fund 503 Insurance - LEOFF 1 Fund 611 Firemen's Pension Total All Funds Combined Total Expenditures $144, 629, 376 6,895,897 2,951,302 12,539,621 57, 637, 865 336,507 9,957,242 6,594,967 685,637 2,064,537 1,264,196 2,233,064 738,761 1,007,612 82,136, 549 9,414,000 19, 990, 522 28,998,430 4,281,881 20, 542, 959 10, 715, 532 14,591,012 1,060,079 1,597,856 $442, 865, 403 Total Revenues $ 144,629,376 6,895,897 2,951,302 12,539,621 57,637,865 336,507 9,957,242 6,594,967 685,637 2,064,537 1,264,196 2,233,064 738,761 1,007,612 82,136, 549 9,414,000 19, 990, 522 28, 998, 430 4,281,881 20,542,959 10, 715, 532 14,591,012 1,060,079 1,597,856 $ 442,865,403 Section 3. A complete copy of the final budget for 2019-2020, as adopted, together with a copy of this adopting ordinance, shall be kept on file in the City Clerk's Office, and a copy shall be transmitted by the City Clerk to the Division of Municipal Corporations of the Office of the State Auditor and to the Association of Washington Cities. Section 4. 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 5. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. W: Word Processing\Ordinances\Adopt 2019-2020 Biennial Budget 10-29-18 68 VC:bjs Page 2 of 3 Section 6. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 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: W: Word Processing\Ordinances\Adopt 2019-2020 Biennial Budget 10-29-18 VC:bjs Page 3 of 3 69 Reconciliation of 2019 - 2020 Budget Summary to Ordinance EXPENDITURES 2019 Expenditures 2020 Expenditures 2020 Ending Fund Balance Total Expenditures 000 General $ 65,275,209 $ 65,778,779 $ 13,575,388 $144,629,376 101 Hotel/Motel 693,131 695,498 1,562,673 2,951,302 103 City Street 6,616,000 5,701,000 222,621 12,539,621 104 Arterial Street 8,404,599 48,935,382 297,884 57,637,865 105 Contingency - - 6,895,897 6,895,897 109 Drug Seizure Fund 60,000 60,000 216,507 336,507 2XX LTGO Debt Service Funds 4,979,263 4,589,893 388,086 9,957,242 213 UTGOBonds 2,841,675 3,713,175 40,117 6,594,967 206 LID Guaranty - - 685,637 685,637 233 2013 LID 688,637 668,613 707,287 2,064,537 301 Land Acquisition, Recreation & Park Dev. 605,000 50,000 609,196 1,264,196 302 Facility Replacement 235,000 215,000 1,783,064 2,233,064 303 General Government Improvements 353,094 358,015 27,652 738,761 304 Fire Improvements 500,000 500,000 7,612 1,007,612 305 Public Safety Plan 39,896,578 40,028,146 2,211,825 82,136,549 306 City Facilities 4,629,000 4,785,000 (0) 9,414,000 401 Water 7,650,901 9,000,238 3,339,382 19,990,522 402 Sewer 10,774,916 9,783,035 8,440,480 28,998,430 411 Foster Golf Course 1,765,345 1,810,408 706,128 4,281,881 412 Surface Water 8,933,224 7,302,426 4,307,309 20,542,959 501 Equipment Rental 4,435,204 3,777,658 2,502,670 10,715,532 502 Insurance Fund 6,904,662 7,412,104 274,247 14,591,012 503 Insurance - LEOFF 1 Fund 465,755 489,313 105,011 1,060,079 611 Firemen's Pension 69,991 69,991 1,457,874 1,597,856 Total $ 176,777,183 $ 215,723,673 $ 50,364,547 $442,865,403 REVENUES 2019 Beginning Fund Balance 2019 Revenues 2020 Revenues Total Revenues 000 General $ 12,590,576 $ 65,739,600 $ 66,299,200 $144,629,376 101 Hotel/Motel 1,370,302 778,000 803,000 2,951,302 103 City Street 2,826,621 4,002,000 5,711,000 12,539,621 104 Arterial Street 3,621,865 6,369,000 47,647,000 57,637,865 105 Contingency 6,447,329 148,568 300,000 6,895,897 109 Drug Seizure Fund 226,507 55,000 55,000 336,507 2XX LTGO Debt Service Funds 387,669 4,979,262 4,590,311 9,957,242 213 UTGO Bonds 40,117 2,841,675 3,713,175 6,594,967 206 LID Guaranty 685,037 300 300 685,637 233 2013 LID 707,287 688,637 668,613 2,064,537 301 Land Acquisition, Recreation & Park Dev. 1,019,476 128,320 116,400 1,264,196 302 Facility Replacement 2,213,064 10,000 10,000 2,233,064 303 General Government Improvements 337,761 200,500 200,500 738,761 304 Fire Improvements 7,412 500,100 500,100 1,007,612 305 Public Safety Plan 13,038,494 66,414,346 2,683,709 82,136,549 306 City Facilities 1,914,000 7,500,000 - 9,414,000 401 Water 5,149,522 7,317,000 7,524,000 19,990,522 402 Sewer 9,174,430 9,912,000 9,912,000 28,998,430 411 Foster Golf Course 640,081 1,793,900 1,847,900 4,281,881 412 Surface Water 3,482,959 9,070,000 7,990,000 20,542,959 501 Equipment Rental 3,874,899 3,619,089 3,221,544 10,715,532 502 Insurance Fund 1,137,704 6,563,872 6,889,436 14,591,012 503 Insurance - LEOFF 1 Fund 527,005 266,533 266,541 1,060,079 611 Firemen's Pension 1,449,856 74,000 74,000 1,597,856 Total $ 72,869,972 $198,971,702 $171,023,729 $442,865,403 70 ,J r L L3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE 2019- 2024 FINANCIAL PLANNING MODEL AND THE CAPITAL IMPROVEMENT PROGRAM FOR GENERAL GOVERNMENT AND THE CITY'S ENTERPRISE FUNDS. WHEREAS, when used in conjunction with the biennial City budget, the Capital Improvement Program (CIP) and the Financial Planning Model for the period of 2019- 2024 are resource documents to help plan directions the City will consider for the future; and WHEREAS, the Financial Planning Model and Capital Improvement Program are not permanent fixed plans, but are guidelines or tools to help reflect future goals and future resources at the time budgets are being planned; and WHEREAS, the commitment of funds and resources can only be made through the budget process; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City Council hereby adopts the 2019-2024 Financial Planning Model and accompanying Capital Improvement Program, incorporated by this reference as if fully set forth herein. Section 2. A copy of the 2019-2024 Financial Planning Model and accompanying Capital Improvement Program shall be kept on file electronically by the City Clerk and accessible from the City's website in accordance with Washington State records retention schedule requirements and City policy, and shall be made available to the public upon request. Section 3. The assumptions, revenues and expenditures will be reviewed and updated biennially, or as necessary, by the City Council. W:\Word Processing\Resolutions\Financial Planning Model & CIP 10-29-18 VC:bjs Page 1 of 2 71 Section 4. The detail of Capital Improvement Program projects will be reflected in the published Financial Planning Model and Capital Improvement Program 2019-2024. 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 W:\Word Processing\Resolutions\Financial Planning Model & CIP 10-29-18 72 VC:bjs Page 2 of 2 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Laurel Humphrey, Council Analyst CC: Mayor Ekberg DATE: October 24, 2019 SUBJECT: Resolution updating Financial Planning Model and other General Financial Policies ISSUE Financial Policies are adopted by Council Resolution and included as appendices in the adopted Budget and Capital Improvement Program. Policies are reviewed on a regular basis and updated as needed. DISCUSSION The City's Financial Policies represent values and expectations for financial planning, budgeting, accounting, reporting and other management practices. Revisions for the 2019-2020 biennium are proposed to include two new policies and housekeeping adjustments to the others. Proposed New Policy: FP-7 For the purpose of compliance with Tukwila Municipal Code Section 3.32.040, "Unbudgeted Equipment or Fixed Assets," "unbudgeted" shall mean when a department's capital asset line item has insufficient budget for the desired purchase. Capital equipment or fixed asset purchases between $5, 000 - $39, 999 are not subject to TMC 3.32.040 and do not require Council Committee approval if there is sufficient budget, unless there is a policy implication. This policy was requested by the 2017 Finance Committee. Last year, in an effort to streamline purchasing practices, Administration proposed removing Tukwila Municipal Code 3.32.040, "Unbudgeted Equipment or Fixed Assets." TMC 3.32.040: Unbudgeted Equipment or Fixed Assets Any unbudgeted capital equipment or fixed asset item, including components or services of items, shall be approved by the Mayor and three affirmative votes of the respective Council committee assigned to the requesting department. "Fixed asset" items are defined as costing at least $5,000 and having a useful life of at least two years." This provision requires Committee approval of certain purchases costing between $5,000 - $39,999 that have not been specifically listed in the budget, and has included items such as replacement treadmills, a striping machine, and a mobile evidence device. The Committee was not comfortable ceding this authority and did not support removing that section from the TMC. However, they did support streamlining processes and making efficient use of Council time, and so requested a financial policy that clarifies the interpretation of TMC 3.32.040 to mean that if sufficient appropriation exists to cover the purchase, it is deemed budgeted. Unbudgeted will mean that the department's capital asset line item has insufficient budget for the desired purchase. Again, this will only apply to items under $40, 000 as anything above that requires Council approval. The Committee was also clear that any purchase with a policy implication should be reviewed by Council. An example of this would be the Police Department's $39,000 purchase of unmanned aircraft systems in 2017. 73 INFORMATIONAL MEMO Page 2 Proposed New Policy: GF-6 The City Council shall receive an updated list of all contracts every quarter, including the amount, responsible department, scope of work, and expiration date. At the October 15, 2018 Regular Meeting, Council President Seal received Council consensus to consider adding a policy similar to the City of Renton's wherein the City Council receives a quarterly report listing all contracts. Staff recommends that all Councilmembers receive this report at the same time rather than linking it to the individual Councilmember voucher review process. The City Clerk's Office manages all contracts for the City and would be responsible for generating this report on a quarterly basis within 10 days of the end of each quarter. The report could be delivered electronically and in hard copy. Staff proposes implementing this practice beginning with the 1st Quarter of 2019. All of the proposed changes are described as follows: Policy FP-1 Updates title of referenced document Policy FP-2 Updates title of referenced document Policy FP-3 Updates title of referenced document Policy FP-4 Revises to align with current Council preferred practice of Council Committees approving capital grant applications requiring a local match. Adds requirement that exceptions to Capital Improvement Program projects require Committee approval. Policy FP-7 New policy requested by 2017 Finance Committee to streamline the process required by Tukwila Municipal Code 3.32,040, "Unbudgeted Equipment or Fixed Asset Items." Policy FP-8 Renumbered Policy FP-9 Renumbered and clarifies Enterprise Fund Policy FP-10 Renumbered and clarifies Enterprise Fund Policy GF-6 New policy requested by City Council on October 15, 2018 RECOMMENDATION Staff is seeking discussion and feedback on the proposed revisions, particularly the new Policy FP-7. While this was originally discussed in November 2017, this resolution is updated on the biennial budget schedule and can be added now if there is still Committee and Council support. If the Committee is ready to move forward, a recommendation on this item can go to the November 13 Committee of the Whole meeting for further discussion. ATTACHMENTS Draft Resolution 74 ti A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING UPDATED POLICIES RELATED TO THE FINANCIAL PLANNING MODEL AND OTHER GENERAL FINANCIAL POLICIES; AND REPEALING RESOLUTION NO. 1897. WHEREAS, the City Council and Mayor are committed to high standards of financial management; and WHEREAS, adopting and periodically updating and revising financial policies are important steps toward ensuring consistent and rational financial management; and WHEREAS, policies related to the Financial Planning Model and other general financial policies are essential components of an overall financial management policy; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Financial policies related to the Financial Planning Model and policies of a general nature, as evidenced in Exhibit A, are adopted. Section 2. The financial policies related to the Financial Planning Model and other general financial policies shall be reviewed on a regular basis and updated as necessary. Section 3. Repealer. Resolution No. 1897 is hereby repealed. W:\Word Processing\Financial Planning Model policies and other general financial policies 10-19-18 LH:bjs Page 1 of 2 75 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: Exhibit A — Financial Planning Model Policies and Other General Financial Policies W:\Word Processing\Financial Planning Model policies and other general financial policies 10-19-18 76 LH:bjs Page 2 of 2 EXHIBIT A City of Tukwila Financial Planning Model Policies The six -year "Financial Planning Model and Capital Improvement Program" is the primary financial policy document. It represents the culmination of all financial policies. Revenues Policy FP-1: Revenues will be estimated on a conservative basis. Increases greater than inflation in the schedule known as the 6-Year Financial Plan "Attachment A," General Fund Revenues and Expenditures, will require additional documentation. Policy FP-2: Major revenue sources will require explanation in the document known as "Attachment A 1," Notes to 6-Year Financial Plan - Revenues, Expenditures and Fund Balance. Operating Expenditures Policy FP-3: Expenditures for the General Fund operations (schedule known as "Attachment B," General Fund Operating Maintenance and Operations DetailExpenditures) will only include basic inflationary increases at the beginning of the budget preparation process. Proposed increases in programs or personnel will require an issues and options paper and Council approval before being added to the operating expenditures estimate. Capital Expenditures Policy FP-4: Project capital grants with local matching requirements can only be applied for with express approval by the City Councitappropriate City Council Committee. Grant applications should generally be shall be made only for projects listed in the six -year Capital Improvement Program, although exceptions can be made with approval by the appropriate City Council Committee - Policy FP-5: If the proposed grants or mitigation are either not funded or are reduced, the respective project will be reevaluated on the basis of its value and priority level placement in the Capital Improvement Program. Policy FP-6: The financing of limited benefit capital improvements (i.e. private development) should be borne by the primary beneficiaries of the improvement. The principle underlying limited benefit is that the property is peculiarly benefited and therefore the owners do not in fact pay anything in excess of what they receive by reason of such improvement. Page 1 of 2 77 Policy FP-7: For the purpose of compliance with Tukwila Municipal Code Section 3.32.040, "Unbudqeted Equipment or Fixed Assets," "unbudqeted" shall mean when a department's capital asset line item has insufficient budget for the desired purchase. Capital equipment or fixed asset purchases between $5,000 - $39,999 are not subject to TMC 3.32.040 and do not require Council Committee approval if there is sufficient budget, unless there is a policy implication. Enterprise Funds Policy FP-87: Each Enterprise Fund shall be reviewed annually and it must have a rate structure adequate to meet its operations and maintenance and long-term capital requirements. Policy FP-98: Enterprise Fund rRate increases shall be small, applied frequently, and staggered to avoid an overly burdensome increase and undue impact in any given year. Policy FP-10-9: Enterprise Fund rRate increases of external agencies (i.e. King County secondary wastewater treatment fees) will be passed through to the users of the utility. Other General Financial Policies Policy GF-1: The City's various user charges and fees shall be reviewed at least every three years for proposed adjustments based on services provided and comparisons with other jurisdictions. Policy GF-2: The Finance Director shall provide a financial status update at least quarterly. Policy GF-3: Budget amendments during the year may be approved by budget motion until the end of the budget year, at which time a formal comprehensive budget amendment is submitted. Policy GF-4: The City shall, whenever practical and advantageous, take advantage of grants, loans, or other external financial sources. With the exception of capital improvement program grants requiring a local match, staff shall report to and seek the approval of the appropriate Council Committee before finalizing the grant. Policy GF-5: Funds exceeding the Mayor's allocated signature authority shall not be moved between City departments without prior approval of the City Council. Policy GF-6: The City Council shall receive an updated list of all contracts every quarter, including the amount, responsible department, scope of work, and expiration date. 78 Page 2 of 2 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Council Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carisen, Deputy Finance Director CC: Mayor Ekberg DATE: October 31, 2018 SUBJECT: Business License Agreement with WA State Department of Revenue ISSUE Approve agreement to enter into a service agreement with WA State Department of Revenue Business License Services to process the city's general business licenses beginning in 2019. 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. DISCUSSION The city has agreed in principle to join BLS to comply with Chapter 35.90 RCW. The purpose of the agreement is to establish the terms under which Revenue's BLS work unit acts as the City's agent for the purpose of collecting, processing and disbursing information, licenses and fees related to the City's general business license activities. The City retains all power and authority over its business licensing and other regulatory activities except as expressly delegated in this agreement. RECOMMENDATION Council is being asked to forward this contract to the November 19, 2018 Regular Meeting Consent Agenda. ATTACHMENTS Agreement with Department of Revenue Business License Services. 79 80 DOR Contract Number: K1687 BUSINESS LICENSING SERVICES AGREEMENT I. Parties and Contact Information This Business Licensing Services Agreement ("Agreement") is entered into between the parties identified below: Mailing Address Delivery Address Contact Person State of Washington Department of DOR Business Licensing Service ("Revenue) PO Box 47475 Olympia, WA 98504-7475 6500 Linderson Way, SW, Ste. 102 Tumwater, WA 98501 Katie Early Phone: (360) 705-6607 E-mail: KatieE@dor.wa.gov City of Tukwila ("Partner) 6200 Southcenter Blvd Tukwila, WA 98188-2544 6200 Southcenter Blvd Tukwila, WA 98188-2544 Contact Person: Peggy McCarthy Phone: (206)433-1835 Email: Peggy.McCarthy@TukwilaWA.gov II. Purpose and Background The purpose of this Agreement is to establish the terms under which the Business Licensing Services (BLS) program of the Department of Revenue will act as Partner's agent for the purpose of collecting, processing, and disbursing information, licenses, and fees related to Partner's licensing or other regulatory activities, hereafter referred to as Confidential Licensing Information. Partner retains all power and authority over its business licensing and other regulatory activities except as expressly delegated to Revenue under this Agreement. Per RCW 35.090.020 (1) "a city that requires a general business license of any person that engages in business activities within that city must partner with the department (Revenue) to have such license issued, and renewed if the city requires renewal, through the business licensing service in accordance with chapter 19.02 RCW." III. Effective Date This Agreement is effective as of (check one) : ❑ (mm/dd/yyyy). the date of the last signature ® of the parties. IV. Services Provided by Revenue Revenue will perform the services identified in this Section IV using best efforts in a manner determined by Revenue in good faith to be appropriate considering objectives, costs, and effectiveness. • Distribute and process initial and renewal internet and/or paper -based applications for Partner's business licensing and/or other regulatory activities. Page 1 of 10 81 DOR Contract Number: K1687 • Collect and process license fees and licensing information received from applicants and licensees. Disburse collected fees as directed by Partner. • Issue Business License with Partner's license endorsement as authorized by Partner. • Provide routine reports on Partner's business licenses as requested by Partner, which may include daily lists of new business applications and renewals, fees processed each day, weekly list of pending accounts, and lists of businesses for which fees have been transferred. • Maintain electronic or microfilm images of all paper documents and electronic representations of electronic filings received by Revenue from applicants and provide copies or certified copies as requested. • Maintain a database containing information received from applicants and licensees (the BLS Database). • Provide technical assistance to establish and configure appropriate BLS Database access and secure access for Partner staff. • Provide initial training to Partner staff in the use of the BLS Database, and ongoing training to address changes to the BLS database/access protocols or in Partner staff. Training will occur at Partner's location, over the telephone, or online, as agreed upon by the parties. • Effect reasonable modifications in the BLS system, database, process, or forms to accommodate Partner's licensing or other regulatory requirements. Revenue will consult with Partner in evaluating alternatives and determining the most feasible and timely means of achieving Partner objectives. • Timely notify Partner of other modifications to the BLS system, database, process, or forms, including modifications accommodating other BLS partners. V. Partner Obligations • Timely provide Revenue with all information requested to implement Partner's participation in the BLS program. • Follow all requirements identified by Revenue as necessary for participation in the BLS program, including using : o The Business License Application and other forms and processes established by Revenue; o The "Business License" document for proof of licensure under Partner's licensing or regulatory program. o The Unified Business Identifier (UBI) number to identify licensees and license accounts in all communications with Revenue. • Obtain and maintain at its own cost, all necessary equipment and online services required at Partner's business location(s) to support Partner's access into and use of the BLS Database. End -to -end testing will take place until such time as Revenue is satisfied. • Ensure Partner Licensing and Information Technology staff are available to respond promptly to Revenue. Partner staff will be knowledgeable of Partner operations and/or technology and be able to assist Revenue staff with process improvements and/or troubleshooting. • Provide timely advance notice to Revenue of potential changes to Partner business licensing requirements, fees or processes. 82 Page 2 of 10 DOR Contract Number: K1687 Upon request by Revenue, provide statistical data associated with the BLS Partner Partnership Agreement such as Full Time Equivalent (FTE) savings, change in number of Partner licensees, and change in revenue flow. VI. Compensation Services identified in this Agreement are provided by Revenue at no charge with the exception of the following: Partner shall reimburse Revenue the costs of developing and producing ad hoc informational reports. Ad hoc reports will be created only if requested by the Partner and agreed -upon by Revenue. • Partner shall reimburse Revenue's expenses for the implementation of changes to the BLS process, if requested by the Partner and agreed -upon by Revenue. • All project coordination costs, including travel -related expenses, shall be absorbed by the respective parties for their own staff. VII. Billing Procedures Partner will provide and maintain with Revenue its current billing addresses and the personnel, if any, to whom invoices should be directed. Revenue shall submit invoices to Partner as -needed, but in no event more frequently than monthly. Partner shall pay all invoices by warrant or account transfer within thirty (30) calendar days of the invoice issue date. Upon expiration or termination of this Agreement, any claim for payment not already made shall be submitted within ninety (90) calendar days after the expiration/termination date or the end of the fiscal year, whichever is earlier. VIII. Confidentiality and Data Sharing The parties agree to the confidentiality and data sharing provisions set forth in Exhibit A and incorporated herein by this reference. IX. Term and Termination This agreement is effective until terminated. Either party may terminate this Agreement upon ninety (90) calendar days' prior written notice to the other party. This agreement may also be amended by mutual written agreement of both parties. X. Disputes The parties agree to participate in good faith mediation to resolve any disputes that are not otherwise resolved by agreement, prior to any action in court or by arbitration. At any time, either party may initiate formal mediation by providing written request to the other party setting forth a brief description of the dispute and a proposed mediator. If the parties cannot agree upon a mediator within fifteen (15) calendar days after receipt of the written request for mediation, the parties shall use a mediation service that selects the mediator for the parties. Each party shall be responsible for one-half of the mediation fees, if any, and its own costs and attorneys' fees. Page 3 of 10 83 DOR Contract Number: K1687 Xl. Miscellaneous A. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Washington. Any action arising out of this Agreement must be commenced in Thurston County, Washington. B. Interpretation. This Agreement shall be interpreted to the extent possible in a manner consistent with all applicable laws and not strictly for or against either party. C. No Waiver. The failure of either party to enforce any term in any one or more instance will not be construed as a waiver or otherwise affect any future right to insist upon strict performance of the term. No waiver of any term of this Agreement shall be effective unless made in writing and signed by personnel authorized to bind the party against whom enforcement is sought. D. Assignment and Delegation. Either party may assign any right or interest, or delegate any duty or obligation, arising under this Agreement upon thirty (30) days written notice to the other party. E. Severability. If any provision of this Agreement is held invalid by a court of competent jurisdiction, the remaining provisions of this Agreement shall be given effect to the extent consistent with applicable law and the fundamental purpose of this Agreement. F. Survival. Terms of this Agreement which by their nature would continue beyond termination will survive termination of this Agreement for any reason, including without limitation, Sections 3 through 7 in Exhibit A. G. No third party beneficiaries. This Agreement is for the benefit of the parties and their successors and may not be enforced by any non-party. H. Amendments. No amendment to this Agreement is enforceable unless made in writing and signed by personnel authorized to bind the party against whom enforcement is sought. I. Merger and integration. This Agreement contains all the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the parties. J. Changes in law. The provisions of this Agreement shall be deemed to change in a manner that is consistent with any changes to any directly applicable statutory authority, provided that the change is consistent with the manifest intent of this Agreement and does not conflict with any of its express provisions. Any such change to this Agreement shall be effective on the effective date of the change in authority. 84 Page 4 of 10 DOR Contract Number: K1687 IN WITNESS WHEREOF, this Agreement is executed effective as of the date specified above. State of Washington Department of Revenue Business Licensing Services Date Partner Date Template approved as to form Approved as to form On File Kelly Owings, Assistant Attorney General for Washington State Date Page 5 of 10 85 DOR Contract Number: K1687 EXHIBIT A CONFIDENTIALITY AND DATA SHARING AGREEMENT I. Purpose and Scope The following provisions establish the terms under which the Department of Revenue ("Revenue") and Partner will share confidential data pursuant to the Business Licensing Services Agreement (the "Agreement"). II. Definitions A. "Confidential Licensing Information" (CLI) has the same meaning as "Licensing Information" under Revised Code of Washington (RCW) 19.02.115(1)(b). CLI is classified as at least Category 3 data under Washington's Standard for Securing Information Technology Assets, Office of the Chief Information Officer (OCIO) Standard No. 141.10. B. "Confidential Tax Information" (CTI) has the same meaning as "Return," "Tax Information," and "Taxpayer Identity" under RCW 82.32.330(b), (c), & (e). CTI is classified as at least Category 3 data under Washington's Standard for Securing Information Technology Assets, OCIO Standard No. 141.10. C. "Confidential" refers to data classified as at least Category 3 data under Washington's Standard for Securing Information Technology Assets, OCIO Standard No. 141.10. D. "Portable Devices" refers to small portable computing devices. Examples of portable devices include, but are not limited to handhelds/PDAs, Ultramobile PCs, flash memory devices (e.g., USB flash drives, personal media players), portable hard disks, and laptop/notebook computers. E. "Portable Media" refers to small portable digital storage media. Examples of portable media include, but are not limited to optical media (e.g., CDs, DVDs, Blu-Rays), magnetic media (e.g., floppy disks, tape, Zip or Jaz disks), or flash media (e.g., CompactFlash, SD, MMC). F. "Data" refers to individual pieces of information. G. "Cloud" refers to a non -Partner data center(s) offering infrastructure, operating system platform, or software services. A more complete definition of "cloud" can be found in the National Institute of Standards (NIST) Special Publication 800-145. H. "Encryption" refers to enciphering data with a NIST-approved algorithm or cryptographic module using a NIST-approved key length. I. "Complex Password" or "Complex Passphrase" refers to a secret phrase, string of characters, numbers, or symbols used for authentication that is not easily guessable and meets an established industry guideline for complexity and length, such as NIST Special Publication 800- 118. III. Data Classification, Authorized Use, Access, and Disclosure A. Data Classification: Data shared under this Agreement is considered confidential and classified as at least Category 3 data under Washington's Standard for Securing Information Technology Assets, OCIO Standard No. 141.10. B. Permitted Uses: Business licensing information may be used for official purposes only. C. Permitted Access: Business licensing information may be accessed only by Partner's employees and agents that have a bona fide need to access such information in carrying out their official duties. D. Permitted Disclosure: Business licensing information received under the Agreement must not be disclosed to non-parties unless the disclosure is: 1) Ordered under any judicial or administrative proceeding; or 2) Otherwise expressly authorized by Revenue in writing. 86 Page 6 of 10 DOR Contract Number: K1687 IV. Confidentiality Partner and Revenue each agree to keep confidential and secure from unauthorized use, access, or disclosure all confidential data received under the Agreement. A. Ensuring Security: Partner shall establish and implement physical, electronic, and managerial policies, procedures, and safeguards to ensure that all confidential data exchanged under this Agreement is secure from unauthorized use, access, or disclosure. B. Proof of Security. Revenue reserves the right to monitor, audit, or investigate Partner's security policies, procedures, and safeguards for confidential data. Partner agrees to provide information or proof of its security policies, procedures, and safeguards as reasonably requested by Revenue. V. Statutory Prohibition Against Disclosure; Confidentiality Agreement A. Criminal Sanctions. RCW 19.02.115(2) prohibits the disclosure of Confidential Licensing Information, except as expressly authorized under RCW 19.02.115(3). RCW 82.32.330(2) prohibits the disclosure of Confidential Tax Information except as expressly authorized under RCW 82.32.330(3). It is a misdemeanor for any person acquiring Confidential Licensing Information or Confidential Tax Information under this Agreement to disclose such information in violation of the disclosure limitations stated in RCW 19.02.115 and RCW 82.32.330. Partner will require employees with access to Confidential Licensing Information and/or Confidential Tax Information to sign a copy of the confidentiality agreement attached at Exhibit C. VI. Breach of Confidentiality In the event of any use, access, or disclosure of confidential data by Partner, or its employees or agents in material violation of the terms of this Agreement: A. Partner shall notify Revenue in writing as soon as practicable, but no later than three working days, after determining that a violation has occurred. B. Revenue may immediately terminate this Agreement and require the certified return or destruction of all records containing confidential data received under the Agreement. VIII. Data Security Confidential data provided by Revenue shall be stored in a secure physical location and on Partner - owned devices with access limited to the least number of staff needed to complete the purpose of this Agreement. A. Partner agrees to store data only on one or more of the following media and protect the data as described: 1) Workstation hard disk drives a) Access to the data stored on local workstation hard disk drives will be restricted to authorized users by requiring logon to the local workstation using a unique user ID and complex password, passphrase, or other authentication mechanisms which provide equal or greater security, such as biometrics or smart cards. b) If the workstation is not located in a secure physical location, hard drive must be encrypted. c) Workstations must be maintained with current anti-malware or anti -virus software. d) Software and operating system security patches on workstations must be kept current. Page 7 of 10 87 DOR Contract Number: K1687 2) Network servers a) Access to data stored on hard disks mounted on network servers and made available through shared folders will be restricted to authorized users through the use of access control lists, which will grant access only after the authorized user has authenticated to the network using a unique user ID and complex password, passphrase, or other authentication mechanisms that provide equal or greater security, such as biometrics or smart cards. b) Data on disks mounted to such servers must be located in a secure physical location. c) Servers must be maintained with current anti-malware or anti -virus software. d) Software and operating system security patches on servers must be kept current. 3) Backup tapes or backup media a) Partner may archive Revenue data for disaster recovery (DR) or data recovery purposes. b) Backup devices, tapes, or media must be kept in a secure physical location. c) Backup tapes and media must be encrypted. d) When being transported outside of a secure physical location, tapes or media must be under the physical control of Partner staff with authorization to access the data or under the physical control of a secure courier contracted by Partner for transportation purposes. 4) Cloud Storage a) Revenue will meet cloud and data requirements in Washington's Standard for Securing Information Technology Assets, OCIO Standard 141.10. b) Revenue and Partner will, at a minimum, meet the following requirements: i. Encrypt the data at rest and in transit. ii. Control access to the cloud environment with a unique user ID and complex password, passphrase, or stronger authentication method such as a physical token or biometrics. iii. Cloud provider data center(s) and systems must be Service Organization Control (SOC) 2 Type II certified. 5) All data provided by Revenue shall be stored on a secure environment by city staff. The City will implement these policies to ensure this security: a) Staff will not store or place any Revenue material on any portable devices or portable media (USB devices, CD/DVD, etc.). b) Staff will not email information provided by Revenue to anyone outside of City staff. c) Staff shall only access Revenue information on a City network computer. d) Staff will not save any Revenue reports or data on the hard drive of any City computer. It shall only be stored on a City network. B. Protection of Data in Transit Partner agrees that any retransmission of Revenue data over a network, other than the Partner's internal business network will be encrypted. 88 Page 8 of 10 DOR Contract Number: K1687 IX. Data Segregation Revenue data must be segregated or otherwise distinguishable from non -Revenue data. This is to ensure that if the data is breached through unauthorized access it can be reported to Revenue and when the data is no longer needed by Partner, all Revenue data can be identified for return or destruction. X. Data Breach Notification If Partner or its agents detect a compromise or potential compromise in the data security for Revenue data such that data may have been accessed or disclosed without proper authorization, Partner shall give notice to Revenue within one (1) business day of discovering the compromise or potential compromise. Partner shall take corrective action as soon as practicable to eliminate the cause of the breach and shall be responsible for ensuring that appropriate notice is made to those individuals whose personal information may have been improperly accessed or disclosed. At a minimum, notification to Revenue will include: A. The date and time of the event; B. A description of the Revenue data involved in the event; and C. Corrective actions the Partner is taking to prevent further compromise of data. XI. Disposition of Data A. Records furnished to the Partner in any medium remain the property of Revenue. B. Revenue data no longer needed by the Partner must be disposed of following the data destruction procedures in this Agreement. C. Upon the destruction of Revenue data, the partner shall complete a Certification of Data Disposition (attached to this Agreement as Exhibit B), and submit it to the Contract Manager within 15 days of the date of disposal. XII. Data Destruction Procedures The following are acceptable destruction methods for various types of media. At least one method defined under the various types of media must be used to destroy Revenue data for that media type. A. Optical discs 1) Incinerate the disc(s); or 2) Shred the discs. B. Magnetic tape(s) 1) Degauss; 2) Incinerate; or 3) Crosscut shredding C. Digital files on server or workstation hard drives or similar media 1) For mechanical hard drives, use a "wipe" utility which will overwrite the data at least 3 times using either random or single character data; 2) For solid state hard drives, use a "secure erase" utility that resets all cells to zero; 3) Degauss sufficiently to ensure that the data cannot be reconstructed; or 4) Physically destroy disk(s) Page 9 of 10 89 DOR Contract Number: K1687 D. Portable media 1) For mechanical hard drives, use a "wipe" utility which will overwrite the data at least 3times using either random or single character data; 2) For solid state hard drives and devices, use a "secure erase" utility that resets all cells to zero; 3) Degauss sufficiently to ensure that the data cannot be reconstructed; 4) Physically destroying disk(s) or devices; or 5) For SmartPhones and similar small portable devices use one of the following: a) If the devices are encrypted and secured with a complex password, the data is considered destroyed. Before disposal or reissuance of the device, make sure the data is encrypted and then reset the device to original or new condition; or b) If a Mobile Device Management (MDM) solution for the device exists, enable the remote wipe command to destroy the data. E. Cloud Storage Use the cloud provider's procedures to permanently delete the files and folders. ****end***** 90 Page 10 of 10 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carisen, Deputy Director CC: Mayor Ekberg DATE: October 29, 2018 SUBJECT: Cancellation of Accounts Receivable ISSUE Each year a resolution comes before the Council for the cancellation of uncollectable accounts receivable. For 2018, these items include: False Alarms equaling $12,397.35, Miscellaneous Billings equals $435.00 for a grand total of $12,832.35. BACKGROUND The process for tracking accounts receivable is quite thorough. The steps below are followed prior to preparation of the attached write-off resolution. • Invoice is sent to the recipient by the Finance Department payable in 30 days. • If payment is not received within 30 days, the receivable is forwarded to our collection agency, Armada Corp., and placed into pre -collect status. • At this time, Armada sends a Delinquency Notice to debtor notifying them of the past -due status of the receivable and asks them to contact the City to make payment. Payments can still be made directly to the City while in pre -collect status. • Once 30 days has passed in pre -collect status, the receivable then rolls over to active collections. At the onset of active collections, a letter is sent to the debtor notifying them of status change and advising that all payments must now be made through the collection agency. • When in active collections status, debtor is contacted both by phone and letter. A search is made for assets with which the debt could be satisfied. Once the debt has been in active collections for 45 days, it is then reported to the national credit bureaus. • The last process in the collections cycle is the pursuit of legal action. This includes attaching checking accounts, garnishments and lawsuits. • The City will not issue or renew a business license until all outstanding debt owed to the City is paid. • It should be noted that while a debt may be written off our books: it is still active in Armada's collection process. DISCUSSION The proposed amount of the 2018 Cancellation of Accounts Receivable is $12,832.35. This is an annual housekeeping item. FINANCIAL IMPACT The financial impact of cancelling $12,832.35 will be to reduce our accounts receivable balance by this amount. Please note that while we are writing off the accounts receivable for accounting purposes., the accounts are still being actively worked for collection purposes with the exception 91 INFORMATIONAL MEMO Page 2 of those accounts where a responsible party cannot be identified. Accounts covered by bankruptcy law cannot be pursued. RECOMMENDATION The Council is being asked to approve the annual resolution authorizing the cancellation of Accounts Receivable and to forward this item to the Regular Meeting Consent Agenda of 11/19/2018. ATTACHMENTS Attachment A — Past Due Accounts Receivables 92 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ORDERING THE CANCELLATION OF PAST DUE ACCOUNTS RECEIVABLES WHEREAS, certain receivables have been deemed uncollectable after efforts by both the City and a collection agency have been unsuccessful; and WHEREAS, the City will continue to pursue these receivables when practical; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Miscellaneous Accounts Receivable. The total of $12,832.35 (per Attachment A) is deemed uncollectable. 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 Attachment: Exhibit A — Past Due Accounts Receivables W:\Word Processing\Resolutions\Past Due Accts Receivables 10-31-18 VC:bjs Page 1 of 1 93 Attachment A - Past Due Accounts Receivables 201 rite -Offs Account # Account Name Date Inv # Description Amount Notes F&G TR F&G TR MUCHO RIVERS Roche SPRIN3 HAAKEN HAAKEN HAAKEN ITT ITT ITT ITT ITT ADENNU BONEYM GRANGE HEARTL SIMMON F & G TRADING LLC 01/12/16 RF-01297 F & G TRADING LLC 03/17/16 RF-01324 MUCHO BURRITO MEXICAN GRILL 01/29/16 RF-01312 RIVERSIDE TERRACE APTS 01/11/16 RF-01293 LA ROCHELLE APARTMENTS 04/26/16 RF-01339 SPRINT 05/07/15 RF-01251 HAAKENSON GROUP HAAKENSON GROUP HAAKENSON GROUP ITT TECH. ITT TECH. ITT TECH. ITT TECH. ITT TECH. NUR ADEN MAURICE BONEY, JR GRANGE INSURANCE HEARTLAND EXPRESS BRENT SIMMONS GLICK SHOSHANNA GLICK GLICK SHOSHANNA GLICK HRURES HRUSOBSKY RESIDENCE 04/04/16 PF-03070 06/07/16 PF-03119 08/15/16 PF-03177 08/15/16 PF-03178 09/19/16 PF-03212 10/17/16 PF-03259 10/17/16 PF-03260 11/16/16 PF-03301 12/31/16 MB-02487 12/31/16 MB-02486 12/31/16 MB-02431 11/29/16 MB-02381 12/31/16 MB-02482 REINSPECTION FEES REINSPECTION FEES REINSPECTION FEES REINSPECTION FEES REINSPECTION FEES REINSPECTION FEES FALSE ALARM #3 FALSE ALARM #4 FALSE ALARM #5 FALSE ALARM #3 FALSE ALARM #4 FALSE ALARM #5 FALSE ALARM #6 FALSE ALARM #7 WO # 21601611 WO # 21601609 WORK ORDER 21601614 GOLF COURSE CURB DAMAGE WO #21601606 11/20/15 PF-02783 FALSE ALARM #3 12/10/15 PF-02900 FALSE ALARM #4 11/25/15 PF-02813 FALSE ALARM #3 000.342.400.00.00 000.342.400.00.00 000.342.400.00.00 000,342.400.00.00 000.342.400.00.00 000.342.400.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.342.800.00.00 000.359.900.00.00 000.359.900.00.00 000.359.900.00.00 Grand Total 85.00 110.00 60.00 60.00 60.00 60.00 435.00 150.00 200.00 200.00 150.00 200.00 200.00 200.00 200.00 1,617.56 3,773.82 2,006.03 1,590.64 1,409.30 11,897.35 150.00 200.00 150.00 500.00 12,832.35 to collections 2/19/2016, Unresponsive to collections 5/19/2016, Unresponsive to collections 3/3/16, unresponsive to collections 2/19/16, unresponsive to collections 6/29/16, unresponsive to collections 8/17/15, unresponsive to collectons 5/19/16, unresponsive to collections 7/14/16, unresponsive to collections 10/21/16, unresponsive to collections 10/21/16, unresponsive to collections 10/21/16, unresponsive to collections 11/21/16, unresponsive to collections 11/21/16, unresponsive to collections 1/5/17, unresponsive 9/17/17 to insurance, unresponsive 3/10/17 filed claim w/ins, 2/5/18 missing info insurance exp, 2/10/17 left owner msg, unresponsive to collections 1/5/17, unresponsive to collections 6/26/17, unresponsive to collections 12/30/15, unresponsive to collections 1/14/16, unresponsive to collectons 12/30/15, unresponsive