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HomeMy WebLinkAboutFS 2011-10-18 COMPLETE AGENDA PACKETCity of Tukwila Finance and Safety Committee O Kathy Hougardy, Chair O Joan Hernandez O Dennis Robertson Distribution: K. Hougardy J. Hernandez D. Robertson A. Ekberg Mayor Haggerton D. Speck P. McCarthy C. O'Raherty S. Kerslake K. Mate] AGENDA TUESDAY, OCTOBER 18 2011 CONFERENCE ROOM #3, 5:00 PM Item Recommended Action 1. PRESENTATION(S) 2. BUSINESS AGENDA a. Business licensing and Revenue Generating Regulatory License (RGRL): Jennifer Ferrer, Senior Fiscal Coordinator (1) An ordinance relating to business license housekeeping items. (2) An ordinance combining RGRL and business license fees to create a combined license fee. (3) Update on non profit businesses and the RGRL. b. A resolution authorizing the cancellation of outstanding claims, payroll checks, etc. Peggy McCarthy, Interim Finance Director c. A resolution regarding the non represented employee wage and benefit package. Stephanie Brown, Human Resources Director d. An ordinance regarding Council compensation. Peggy McCarthy, Interim Finance Director 3. ANNOUNCEMENTS 4. MISCELLANEOUS Page Pg.1 (1) Forward to 10/24 C.O.W. Pg•3 and 11/7 Regular Mtg. (2) Forward to 10/24 C.O.W. Pg•41 and 11/7 Regular Mtg. (3) Information only. Pg.51 b. Forward to 10/24 C.O.W. Pg•55 and 11/7 Regular Mtg. c. Forward to 10/24 C.O.W. Pg•63 and 11/7 Regular Mtg. d. Forward to 10/24 C.O.W. Pg.79 and 11/7 Regular Mtg Next Scheduled Meeting: Tuesday, November 8, 2011 S The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206 433 -1800 or (tukclerk @tukwilawa.gov) for assistance. x City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator DATE: October 12, 2011 SUBJECT: Update language to reflect Finance assuming Business Licensing from the City Clerk office and repeal Tukwila Municipal Code (TMC) Chapter 5.32 $*if] 0 The "Business Licenses and Regulations" section of the TMC was last updated in May 2011 by Ordinance No. 2333. Numerous sections of Title 5 of the TMC still contain language referencing the City Clerk's office as the issuing department for business licenses. TMC Chapter 5.32, "Trailer Parks," regulations were written in 1959 and are now outdated. BACKGROUND On November 15, 2010, Council adopted proposed language for the issuing department from the City Clerk's office to the Finance Department. This change, however, was only reflected in Title 5, Chapter 5.04. The Finance Department has assumed all business license responsibilities from the City Clerk's office and as such should be reflected in TMC Title 5. Trailer Park establishments were annexed into Tukwila and regulated under King County. Chapter 5.32 of the Code was never applied or enforced and is no longer needed. DISCUSSION Since the Finance Department has become the issuing office of Business Licenses, the Code language needs to be updated to reflect this change in its entirety. Currently the Code only reflects this change in Title 5, Chapter 5.04. The remaining sections of Title 5 need to be updated to reflect this change. Trailer Parks are treated like any other organization operating in the City with the requirement to obtain a valid business license and pay the applicable Revenue Generating Regulatory License (RGRL) fee. 1 INFORMATIONAL MEMO Page 2 RECOMMENDATION The Council is being asked to approve the attached Ordinance, approve the language updates and operational changes for the issuing department and approve the repeal of TMC 5.32. The Council is being asked to consider this issue at the October 24, 2011 Committee of the Whole Meeting and the November 7, 2011 Regular Meeting. ATTACHMENT Draft Ordinance 6 iffill AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING VARIOUS ORDINANCES AS CODIFIED IN TUKWILA MUNICIPAL CODE TITLE 5, "BUSINESS LICENSES AND REGULATIONS," TO UPDATE THE ISSUING DEPARTMENT; REPEALING VARIOUS ORDINANCES AS CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 5.32, "TRAILER PARKS;" PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the current "Business Licenses and Regulations" section of the Tukwila Municipal Code (TMC) was last updated in May 2011 by Ordinance No. 2333, and operational changes require an update to the regulations; and WHEREAS, the Finance Department has become the issuing office for business licenses within the City and housekeeping amendments are required to reflect this change in City operations; and WHEREAS, the City's regulations relating to trailer parks as codified at TMC Chapter 5.32, "Trailer Parks," were written in 1959 and are outdated; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 5.08.030, "Cabaret license required Fee," Amended. Ordinance No. 1586 §2 (part), as codified at TMC Section 5.08.030, is hereby amended to read as follows: It is unlawful to conduct, open up, manage or operate or maintain any cabaret as defined in TMC Section 5.08.010 within the City without a valid license to do so to be known as the "cabaret license." The annual license fee therefor shall be $300.00. The IiGense fee fer a peried of less thaR a yeaF shall be the rate of $75.00 for eaGh qwarte� period. Each such license shall be non assignable and nontransferable, and the fee paid shall be nonrefundable. Section 2. TMC Section 5.08.040, "Manager's licenses and entertainer's licenses Fees Terms Assignments Renewals," subparagraph F, Amended. Ordinance Nos. 1648 §1 and 1586 §2 (part), as codified at TMC Section 5.08.040, subparagraph F, are hereby amended to read as follows: W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 1 of 22 3 F. In order to obtain renewal of a current manager's license or entertainer's license for the next year, a license holder must file an application for renewal with the Clerk Finance Director prior to expiration of the current license. The renewal fee for each year is $75.00. Section 3. TMC Section 5.08.050, "License application procedure," Amended. Ordinance No. 1586 §2 (part), as codified at TMC Section 5.08.050, is hereby amended to read as follows: A. Cabaret License An applicant for a cabaret license shall make application therefor on the application forms provided by the C GleF Finance Director. Each such application form shall require the following information: 1. The name, home address, home telephone number, date and place of birth, and social security number of the applicant, if the applicant is an individual; 2. The names, home addresses, home telephone numbers, dates and places of birth, and social security numbers of the officers and directors of the applicant, if the applicant is a partnership. If the applicant is any other type of business entity, then the applicant shall provide the same information requested in this subsection for all managers or other persons who control the business decisions of that entity; 3. The name, address, and telephone number of the cabaret, and the names of all on -site managers of the cabaret; and 4. The name, address and telephone number of the owner of the property on which the cabaret is located. Each application must be completed in full and signed by the applicant in affidavit or declaration form wherein the applicant certifies under penalty of perjury that the applicant has personal knowledge of all matters asserted in said application and that the statements contained therein are true and complete. B. Manager's or Entertainer's License Any application for a manager's license or entertainer's license or renewal thereof shall be signed by the applicant and notarized or certified to be true under penalty of perjury. Each such application shall be submitted on a form supplied by the Olerk Finance Director. The form shall require statement of the applicant's name, home address, home telephone number, date and place of birth, social security number, and the name, address and phone number of the cabaret or cabarets at which the applicant will work, and any stage names or nicknames used in entertaining. The form shall also require the applicant to disclose all prior criminal convictions, including the crime(s) convicted of, place, and the approximate date of each such conviction. At the time of application, the applicant shall present suitable identification providing proof that the applicant is at least 18 years of age, which may include (1) a motor vehicle operator's license, issued by any state, bearing the applicant's photograph and date of birth; or (2) any state issued identification card bearing the applicant's photograph and date of birth. At the same time, the GleFk Tukwila Police Department shall photograph each applicant for the Clerk's Finance Director's records. W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 2 of 22 4l C. Duty to Supplement Application In the event that any information on any application for a license under this chapter becomes outdated or otherwise inaccurate, an applicant or license holder promptly shall notify the Clerk— Finance Director in writing and provide current information. D. All Completed Applications A completed application shall be submitted to the City Qerk Finance Director. An application shall not be considered to be completed unless accompanied by a receipt or other notation from the City showing payment of the required license fee. The C ity Clerk Finance Director shall refer a completed application to the following City department heads for investigation and report as follows: 1. The Chief of Police shall provide a criminal history record of the applicant; 2. The Director of the Department of Community Development shall provide a report stating whether or not the application or premises of the business reflect any actual or potential violations of the City zoning code, and 3. The Building Official shall provide a report indicating whether or not said premises are in compliance with all applicable health, safety and building statutes and regulations. Section 4. TMC Section 5.08.060, "Grounds for denial of application," subparagraph 3, Amended. Ordinance No. 1586 §2 (part), as codified at TMC Section 5.08.060, subparagraph 3, is hereby amended to read as follows: 3. The license was procured by fraud or any false statement or misrepresentation of fact in the application or in any report or record filed with the Clerk Finance Director. In all events, the Clerk Finance Director shall issue the license, or his /her reasons(s) for non issuance as soon as possible, but in no event more than 30 days after receipt of a completed application. Section 5. TMC Section 5.08.070, "Revocation or suspension of licenses," Amended. Ordinance No. 1586 §2 (part), as codified at TMC Section 5.08.070, is hereby amended to read as follows: A. The City Clerk Finance Director may revoke any license under this chapter, or may suspend any such license for a period of time not to exceed one year, where one or more of the following conditions exist: 1. The license was procured by fraud or by any false statement or misrepresentation of fact in the application or in any report or record required to be filed with the Glerk� Finance Director 2. The building, structure, equipment, operation or location of the business for which the license was issued does not comply with the requirements or standards of this code; or 3. The license holder, his or her employee, agent, partner, director, officer or manager has violated or permitted violation of any of the provisions of this chapter. W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 3 of 22 5 B. Upon determination that grounds for revocation or suspension of a license exist, the Clerk- Finance Director shall send by first class mail, postage prepaid, to the license holder a notice of revocation or suspension. The notice shall set forth the grounds for revocation or suspension. Section 6. TMC Section 5.08.080, "Appeals and hearing," Amended. Ordinance Nos. 1796 §3 (part) and 1586 §2 (part), as codified at TMC Section 5.08.080, are hereby amended to read as follows: A. Any person aggrieved by the action of the Clerk Finance Director in refusing to issue or renew any license under this chapter or in suspending or revoking any license under this chapter shall have the right to appeal such action to the City Hearing Examiner, or to such other hearing body as may hereafter be established by the City Council for the hearing of such appeals, by filing a notice of appeal with the Citv Clerk within ten days of receiving notice of the action from which appeal is taken. B. The hearing body, upon receipt of a timely notice of appeal, shall set a date for a hearing of such appeal within 20 days from the date of such receipt, except as specified in TMC Section 5.08.080.C. The hearing shall be de novo. The hearing body shall hear testimony, take evidence and may hear oral argument and receive written briefs. The filing of such appeal shall stay the action of the Clerk, Finance Director pending the decision of the hearing body. C. The decision of the hearing body on an appeal from a decision of the Clerk Finance Director shall be based upon a preponderance of the evidence. The burden of proof shall be on the appellant. D. The decision of the hearing body shall be final unless appealed to the superior court within 20 days of the date the decision is entered. Section 7. TMC Section 5.10.020, "Definitions," subparagraph 3, Amended. Ordinance Nos. 1911 §1 and 1778 §2 (part), as codified at TMC Section 5.10.020, subparagraph 3, are hereby amended to read as follows: 3. "Cie Finance Director" means the C Finance Director or his /her designee who is designated by the Mayor as licensing official under this chapter. Section 8. TMC Section 5.10.030, "Adult cabaret licenses, fees, terms, assignments and renewals," Amended. Ordinance No. 1778 §2 (part), as codified at TMC Section 5.10.030, is hereby amended to read as follows: A. No adult cabaret shall be operated or maintained in the City unless the owner or lessee thereof has a current adult cabaret license under this chapter. It is unlawful for any operator, manager, entertainer or employee to knowingly work in or about, or to knowingly perform any service directly related to the operation of an adult cabaret, when such adult cabaret does not have a current adult cabaret license. B. The license year for an adult cabaret license shall be from January 1 to December 31 of each year. Each such license shall expire at close of business or midnight, whichever is earlier, on December 31 of such year. W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 4 of 22 X C. The license fee for an adult cabaret license is $300.00. The iGe c f D. An adult cabaret license under this chapter shall not be assigned or transferred. Any fee paid is nonrefundable. E. In order to obtain renewal of a current adult cabaret license for the next year, a license holder must file an application for renewal with the Clerk Finance Department. The renewal fee for each year is $300.00. Section 9. TMC Section 5.10.050, "License applications," Amended. Ordinance No. 1778 §2 (part), as codified at TMC Section 5.10.050, is hereby amended to read as follows: A. Adult Cabaret License. Any application for an adult cabaret license or renewal thereof shall be submitted in the true name of the operator of the adult cabaret to which the application pertains. The true operator or his /her agent, under penalty of perjury, shall sign and notarize or certify that all of the operators as defined in this chapter are listed and all of the information provided is true and correct. Any change in ownership in the adult cabaret must be reported to the Clerk Finance Director within 20 days of such change(s). Each such application shall be submitted on a form supplied by the Clerk Finance Director. The form shall require the following information: 1. If the applicant is an individual or partnership, the names, home addresses, home telephone numbers, dates and places of birth, and social security numbers of all operator(s). If the applicant is a partnership, all such information must be provided for all general partners; 2. If the applicant is a corporation, the names, addresses, telephone numbers, and social security numbers of all operators and of all corporate officers and directors. The same information shall be required from each parent company or affiliate; 3. The name, address, and telephone number of the adult cabaret; 4. The name, address and telephone number of the owner of the property on which the adult cabaret is located, 5. The names, addresses, and telephone numbers of all employees of the adult cabaret; 6. A statement detailing whether the applicant or any operator, partner, corporate officer, director, or shareholder of 50% or more of any class of an operator's stock, holds any other licenses under this chapter or any similar cabaret, adult cabaret entertainment or sexually- oriented business ordinance, including motion picture theaters and panorams from the City or another city, county, or state, and if so, the names and addresses of each other licensed business and the jurisdiction(s) in which such businesses are located; and W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 5 of 22 C 7. A description of the adult cabaret or sexually- oriented adult cabaret entertainment business history of the applicant; whether such person or entity, in previously operating in this or another city, county or state, has had a business license or adult cabaret entertainment license revoked or suspended, the reason therefore, and the activity or occupation of the applicant subsequent to such action, suspension or revocation. B. Manager's License or Entertainer's License. Any application for a manager's license or entertainer's license, or any renewal thereof, shall be signed by the applicant and notarized or certified to be true under penalty of perjury. Each such application shall be submitted on a form supplied by the Clerk Finance Director. The form shall require a statement of the applicant's name, home address, home telephone number, date and place of birth, social security number, Washington State Unified Business Identifier (UBI) number, and the name, address and phone number of the adult cabaret or adult cabarets at which the applicant will work, and any stage names or nicknames used in entertaining. The form shall also require the applicant to disclose all prior criminal convictions, including the crime(s) convicted of, place, and the approximate date of each such conviction. At the time of application or renewal, the applicant shall present picture identification which shall include (1) a valid motor vehicle operator's license, issued by the State of Washington, bearing the applicant's photograph and date of birth; or (2) a valid Washington State issued identification card bearing the applicant's photograph and date of birth. At the time of application or renewal 14 every year, the applicant shall be photographed by the Clerk Tukwila Police Department DoT his/her desigRec for the Glerl:'s Finance Director's records and the Police Department's records. Fa to appear fer o photograph between July 1 and my 14 nn sunh dat a c i 2a are pre Gr her the Cle shall result in license ,snensign Until the photograph is nhtainecI C. Duty to Supplement Application. In the event that any information on any application for a license under this chapter becomes outdated or otherwise inaccurate or incomplete, including but not limited to a change in the applicant's name, address, telephone number, or stage name, or substantial changes to an applicant's appearance, including but not limited to a chanae in hair style and color, or facial or other features including tattoos, an applicant or license holder shall appear before the Clerk Finance Director within 20 days and provide current information, including, when applicable, being photographed by the Clerk Tukwila Police Department e r h, —,,,is h desigflee to accurately reflect any change in looks when compared to the most recent photograph available under TMC Section 5.10.050.B. Section 10. TMC Section 5.10.060, "Issuance of licenses and renewals," Amended. Ordinance No. 1778 §2 (part), as codified at TMC Section 5.10.060, is hereby amended to read as follows: A. Upon receipt of any application for a license under this chapter, the Clerk Finance Director shall refer the application to the Police Department which shall investigate the truth of the statements in the application and shall investigate the applicant's compliance with the standards of this chapter. Upon receipt of any complete W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 6 of 22 i application for a license, the Clerk- Finance Director shall further issue a temporary license, pending disposition of the application or completion of the term of any license suspension issued pursuant to this chapter. The temporary license shall expire upon issuance of a license or renewal thereof or notice of non issuance or 30 days from the date of issue, whichever is sooner. The holder of a temporary license is subject to all requirements, standards and penalty provisions of this chapter. B. After an investigation, but prior to the expiration of the temporary license, the Clerk Finance Director shall issue a license if the Clerk Finance Director finds: 1. That the applicant complies with all applicable requirements and standards of this chapter; and 2. That the applicant has not made any false, misleading or fraudulent statement of fact in the application for a license, or in any report or record required to be filed with the Clerk Finance Director. In the event the applicant has not met the enumerated requirements after the required investigations, the Clerk Finance Director shall issue a notice of non issuance of the license. Notice of non issuance shall specify the reasons therefor. C. Upon receipt of any application for renewal of a license under this chapter, the Clerk Finance Director shall issue the renewal unless the Clerk Finance Director has information which indicates that the applicant would not qualify for the initial issuance of a license under TMC Section 5.10.060.B. As necessary, the Clerk Finance Director may issue temporary licenses after receipt of a renewal application. In the event the applicant has not met the enumerated requirements after the required investigation, the Clerk Finance Director shall issue the renewal or notice of non renewal of the application. Notice of non renewal shall specify the reasons therefor. D. Each adult cabaret shall maintain on the premises of the adult cabaret and retain for a period of two years the names, addresses, home telephone numbers, social security numbers, and ages of each person employed or otherwise permitted to appear or perform on the premises as an entertainer, including independent contractors and employees. This information shall be available for inspection by the Clerk Finance Director or the Tukwila Police Department during the adult cabaret's regular business hours. Section 11. TMC Section 5.10.090, "Revocation or suspension of licenses," Amended. Ordinance No. 1778 §2 (part), as codified at TMC Section 5.10.090, is hereby amended to read as follows: A. The Clerk Finance Director may revoke any license under this chapter or may suspend any such license for a period of time not to exceed one year where one or more of the following conditions exist: 1. The license was procured by fraud, by a materially false or misleading representation of fact in the application or in any report or record required to be filed with the Clerk Finance Director; or W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 7 of 22 t• 2. The building, structure, equipment, operation or location of the business for which the license was issued does not comply with the requirements or standards of this chapter. 3. The license holder, his or her employee, agent, partner, director, officer or manager has violated or permitted violation of any of the provisions of this chapter. B. Upon determination that grounds for revocation or suspension of a license exist, the Clerk- Finance Director shall send the license holder a notice of revocation or suspension by first class mail, postage prepaid. Such notice shall be effective upon the expiration of the ten -day appeal period set forth in TMC Section 5.10.100.A, unless a timely notice of appeal is filed as specified therein. Section 12. TMC Section 5.12.040, "Investigation of applicant issuance and denial of license," Amended. Ordinance No. 1887 §5, as codified at TMC Section 5.12.040, is hereby amended to read as follows: A. The C k Finance Director shall refer the application to the Police Department, which shall determine the accuracy of the information contained in the application and conduct a criminal history background investigation of the applicant. Upon completion of the investigation, the Police Department shall forward a recommendation for approval or denial to the Cry Clergy Finance Director. B. If, as a result of the investigation, the character and business responsibility of the applicant is found to be satisfactory, the Ci Gl er Finance Director shall issue the license to the applicant. The C ity Cler: k Finance Director shall deny the applicant the license if the applicant has: Committed any act consisting of fraud or misrepresentations; 2. Committed any act which, if committed by a license holder, would be grounds for suspension or revocation of a license; 3. Within the previous ten years, been convicted of a misdemeanor or felony directly relating to the occupation of peddler, including, but not limited to, those misdemeanors and felonies involving moral turpitude, fraud or misrepresentation; 4. Been refused a license under the provisions of the chapter; providing, however, that any applicant denied a permit under the provisions of this chapter may reapply if and when the reasons for denial no longer exist; or 5. Made any false or misleading statement in the application. C. The denial of a license to an individual, corporation, partnership or other organization which serves as the employer or principal for individual peddlers, shall be a sufficient basis to deny a license to the individual applicants who are employed by or acting as an agent for the applicant. W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 8 of 22 10 Section 13. TMC Section 5.12.070, "License revocation," Amended. Ordinance No. 1887 §8, as codified at TMC Section 5.12.070, is hereby amended to read as follows: A. The City -Gler Finance Director may revoke any license under this chapter after notice and hearing where one or more of the following conditions exist: 1. The license was procured by fraud, by a materially false or misleading representation of fact in the application or in any report or record required to be filed with the Clerk Finance Director. 2. Fraud, misrepresentation or false statements made in the course of carrying on the business as a peddler. 3. Violation of any provision in this chapter. 4. Conviction, after submission of the application for a peddler's license, of a felony or misdemeanor directly relating to the occupation of peddler, including, but not limited Jo, those misdemeanors and felonies involving moral turpitude, fraud or misrepresentation. 5. Conducting the business of peddling in any unlawful manner or such manner as to constitute a breach of the peace or to constitute a menace to the health, safety and general welfare of the public. 6. The revocation of any permit held by an individual, corporation, partnership or other organization which serves as the employer or principal for individual peddlers shall constitute a basis for revoking the permit issued to individual applicants who are employed by or acting as agents for such individual, corporation, partnership or organization. 7. The revocation of a license for three or more persons who are employees or agents of an individual, corporation, partnership or organization shall constitute a basis for revoking the license issued to the employer or principal, as well as the licenses issued to all other employees or agents of that employer or principal. B. Upon determination that grounds for revocation of a license exist, the City Clerk Finance Director shall send the license holder a notice of revocation by certified mail, return receipt requested. Such notice shall be effective upon the expiration of the ten day appeal period set forth in TMC Section 5.12.080, unless a timely notice of appeal is filed as specified therein. Section 14. TMC Section 5.36.040, "License issuance," Amended. Ordinance No. 182 §4, as codified at TMC Section 5.36.040, is hereby amended to read as follows: Upon the approval of the City Council for the operation of a quarry within the City, the Clerk Finance Director shall be instructed to issue a license without charging a fee. W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 9 of 22 11 Section 15. TMC Section 5.36.140, "Liability," Amended. Ordinance No. 182 §14, as codified at TMC Section 5.36.140, is hereby amended to read as follows: The operator shall post sufficient public liability and property damage insurance as required by the State for the operation of a quarry. Proof of such insurance must be filed with the Gity-Gler-k Finance Director. Section 16. TMC Section 5.44.030, "License Application," Amended. Ordinance No. 1482 §1 (part), as codified at TMC Section 5.44.030, is hereby amended to read as follows: A. Every person desiring to operate or have charge of a tow truck business within the City shall make a written application to the C ity Clerk Finance Director for a license to do so. B. Such application shall be referred to the Planning Director for review to insure the proper location and screening of the proposed operation as set forth in TMC Section 5.44.130. Section 17. TMC Section 5.44.050, "Insurance," Amended. Ordinance No. 1482 §1 (part), as codified at TMC Section 5.44.050, is hereby amended to read as follows: A. Every operator shall file with the City Gler k Finance Director a policy or policies of public liability insurance, issued by an insurance company or companies authorized to do business in the State, providing indemnity for or protection to the City as well as providing public liability insurance coverage for each and every vehicle owned, operated and /or leased by the applicant, for injury to or death of persons, passengers or otherwise in accidents resulting from any cause by which the owner and /or operator of the vehicle would be liable on account of any liability imposed upon him by law, regardless of whether the vehicle was being driven by the owner or his agent, and as against damage to the property of another, including personal property under like circumstances, in the sum of $50,000 for the injury or death of one person, or $100,000 for the injury or death of more than one person in any one accident and $10,000 for property damage. B. Any copy of any such insurance policy shall be subject to approval as to sufficiency and as to form by the City Attorney. Every such policy of insurance shall provide that the liability of the insured shall not be affected by the insolvency or bankruptcy of the insured. The policy shall be for the benefit of any and all judgment creditors and shall extend for the period to be covered by the license applied for and the insurer shall give not less than ten days' written notice to the C ity Clerk Finance Director in the event of change or cancellation. Section 18. TMC Section 5.44.060, "License Fee," Amended. Ordinance No. 1482 §1 (part), as codified at TMC Section 5.44.060, is hereby amended to read as follows: W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 10 of 22 12 Every applicant shall produce a current Washington tow truck operator registration. Upon proper authorization by the City Council, the Cit QeFk Finance Director shall, upon receipt of the annual license fee, issue a license which shall expire on the 31st day of December of the year in which it is issued. The annual license fee shall be $25.00 for each vehicle to be operated, and a separate license shall be required for each vehicle. Section 19. TMC Section 5.48.030, "License fees," Amended. Ordinance No. 1273 §3, as codified at TMC Section 5.48.030, is hereby amended to read as follows: A. The license fee for each amusement center shall be $500.00 per annum. SUGh fe-cc chall bap B. The amusement device fee shall be $50.00 per machine per annum. Such fee shall be payable annually. Section 20. TMC Section 5.48.040, "Issuance of license," Amended. Ordinance No. 1273 §4, as codified at TMC Section 5.48.040, is hereby amended to read as follows: A. Any person, firm or corporation desiring to apply for an amusement center license under the provisions of this chapter shall have a Conditional Use Permit as required in the zoning code of the City. B. Any person, firm or corporation desiring to apply for one or more of the licenses provided for by this chapter shall make a written application for such license or licenses with the Gity -Clerk Finance Director on a form prescribed by the City Clerk Finance Director. At the time of applying for such license, said applicant shall deposit with the City Clerk Finance Director the full amount of the license fee for the period for which application is made. This application fee shall be held by the Finance Director pending granting or denial of said application; provided, however, that 10% of said fee shall not be refunded in the event that the application is denied. Said 10% fee constitutes a charge for processing the application. C. Said application shall be reviewed by a committee made up of the City Clerk Finance Director, Fire Chief, Police Chief and Planning Director. The committee shall establish the qualifications of the applicant for the license being applied for and to assure compliance of all the laws, rules and regulations of the City regarding the installation and maintenance of the amusement devices. The decision of the review committee to grant or deny the application may be appealed to the City Council within ten days. D. All licenses issued under this chapter shall be issued only to the person, firm or corporation; the license may not be transferred without prior written consent of the City following review of the proposed transfer by the license review committee. E. All licenses issued allowing amusement devices within business operations must be prominently displayed. Each license will indicate the number of operable machines allowed on the premises. W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 11 of 22 4 F. All renewal fees for amusement center licenses and amusement devices shall be due and payable on the first day of October of each year. G. All licenses issued hereunder shall be good for a period of one year, commencing October 1 renewals therefor shall be subject to the same review as though the license were being issued originally. Section 21. TMC Section 5.48.070, "Enforcement," Amended. Ordinance No. 1273 §7, as codified at TMC Section 5.48.070, is hereby amended to read as follows: The City Clerk Finance Director, the Police Chief and Fire Chief are empowered to administer, carry out and enforce the policies and provisions of this chapter. Section 22. TMC Section 5.52.010, "Definitions," subparagraph 1, Amended. Ordinance No. 1475 §1 (part), as codified at TMC Section 5.52.010, subparagraph 1, is hereby amended to read as follows: 1. Finance Director" means the City of Tukwila employee or agent appointed by the Mayor as licensing official under this chapter. Section 23. TMC Section 5.52.020, "Panoram premises license required," subparagraph C, Amended. Ordinance No. 1475 §1 (part), as codified at TMC Section 5.52.020, subparagraph C, is hereby amended to read as follows: C. The Cler Finance Director shall prescribe the form of such license, number the same, and shall indicate thereon the number of panoram devices which may be operated thereunder, and the location of the licensed panoram premises. Section 24. TMC Section 5.52.030, "Panoram device license required," subparagraph D, Amended. Ordinance No. 1475 §1 (part), as codified at TMC Section 5.52.030, subparagraph D, is hereby amended to read as follows: D. The CterkFinance Director shall prescribe the form of such license and number the same. Section 25. TMC Section 5.52.040, "Panoram operator's license required," Amended. Ordinance No. 1475 §1 (part) as codified at TMC Section 5.52.040, is hereby amended to read as follows: It is unlawful to own and exhibit or display for public use, or to place with another, by lease or otherwise, for public use, exhibit or display, any panoram device without a valid and current panoram operator's license. The ClerkFinance Director shall prescribe the form of such license and shall number the same. Section 26. TMC Section 5.52.050, "License fee Terms Assignment Renewal," subparagraphs D and E, Amended. Ordinance No. 1475 §1 (part), as codified at TMC Section 5.52.050, subparagraphs D and E, is hereby amended to read as follows: W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 12 of 22 14 D. If a licensee, on or before December 31 of any year, gives written notice to the City Qerk Finance Director that he will not, after December 31, conduct business in a manner requiring a license under this chapter, such licensee may reapply for a license at any time he wishes to conduct a business requiring such a license. E. If a licensee does not give written notice as provided for in TMC Section 5.52.050.D, or having given such notice, operates after December 31 in a manner requiring a license under this chapter, and does not renew such required license as provided in TMC Section 5.52.050.C, such license shall be automatically revoked on the 61st day following the prior December 31, and such licensee may not reapply for such license for a period of one year from such date of revocation. Upon such revocation, the City Glerk Finance Director shall promptly mail written notice of such revocation to such licensee. Section 27. TMC Section 5.52.060, "License application Report by City departments," subparagraph A, Amended. Ordinance No. 1475 §1 (part), as codified at TMC Section 5.52.060, subparagraph A, is hereby amended to read as follows: A. Any person seeking a panoram premises license, panoram operator's license or panoram device license shall file a written application with the Glerk Finance Director on a form provided by the GlerkFinance Director for that purpose. The Gter-kFinance Director, upon presentation of such application and before acting upon the same, shall refer such application to the City Police Department, which shall make a full investigation as to the truth of the statements contained therein, and to the City Development Review Committee and City Fire Department, and to the County Health Department, which shall investigate and provide information to the GlerkFinance Director concerning compliance of the premises and devices sought to be licensed with this and other applicable City and State health, zoning, building, fire and safety ordinances and laws. Section 28. TMC Section 5.52.080, "Issuance of licenses," Amended. Ordinance No. 1475 §1 (part), as codified at TMC Section 5.52.080, is hereby amended to read as follows: A. Within 30 days of the date of filing of any application, the GlerkFinance Director shall issue the license or licenses applied for or renewal thereof, or notice of non issuance and the reasons therefor. B. The GlerkFinance Director shall issue the license or licenses applied for if and only if, after an investigation, the GlerkFinance Director finds: 1. That the business for which a license is required herein will be conducted in a building, structure and location which complies with the requirements and standards of this chapter; and 2. That the applicant, his or her employee, agent, partner, director, officer, stockholder or manager has not knowingly made any false, misleading or fraudulent statement of material fact in the application for a license, or in any report or record required to be filed with the GlerkFinance Director. W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 13 of 22 M11 C. The Gler Finance Director shall renew a license upon application unless the ClerkFinance Director is aware of facts that would disqualify the applicants from holding the license for which they seek renewal. Section 29. TMC Section 5.52.090, "Suspension or revocation of licenses Notices Summary suspension," Amended. Ordinance No. 1475 §1 (part), as codified at TMC Section 5.52.090, is hereby amended to read as follows: A. After an investigation and upon the recommendation of the Chief of Police, Director of Planning, Fire Chief or the County Health Officer, the OIeFkFinance Director may, upon 30 days' notice, temporarily or permanently suspend or revoke any license issued pursuant to this chapter where one or more of the following conditions exist: 1. The license was procured by fraud or misrepresentation of a material fact in the application or in any report or record required to be filed with the Gler-kFinance Director; 2. The building, structure, equipment or location of the business for which the license was issued does not comply with the requirements or the standards of this chapter; 3. The licensee, his or her employee, agent, partner, director, officer or manager has knowingly allowed or permitted in or upon the panoram premises any violations of this chapter or acts made unlawful under this chapter. B. If the Gler Finance Director finds that any condition set forth in TMC Section 5.52.090.A exists, and that such condition constitutes a threat of immediate serious injury or damage to persons or property, the GterkFinance Director may immediately suspend any license issued under this chapter pending a hearing in accordance with TMC Section 5.52.100. The C4erk Finance Director shall issue notice setting forth the basis for the ClerkFinance Director's action and the facts supporting the CIer Finance Director's finding regarding the condition found to exist that constitutes a threat of immediate serious injury or damage to person or property. Section 30. TMC Section 5.52.100, "Appeal and hearing," Amended. Ordinance Nos. 1796 §3 (part) and 1475 §1 (part), as codified at TMC Section 5.52.100, are hereby amended to read as follows: A. Any person aggrieved by the action of the Gler Finance Director in refusing to issue or renew any license under this chapter or in temporarily or permanently suspending or revoking any license under this chapter shall have the right to appeal such action to the City Hearing Examiner, or to such other hearing body as may hereafter be established by the City Council for the hearing of such appeals, by filing a notice of appeal with the City Clerk within ten days of receiving notice of the action from which appeal is taken. B. The hearing body, upon receipt of a timely notice of appeal, shall set a date for a hearing of such appeal within 20 days from the date of such receipt, except as specified in TMC Section 5.52.100.C. The hearing shall be de novo. The hearing body shall hear testimony, take evidence and may hear oral argument and receive written W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 14 of 22 W briefs. The filing of such appeal shall stay the action of the Gler-kFinance Director, pending the decision of the hearing body. C. In cases of summary suspension of licenses because of the threat of immediate serious injury or damage to persons or property pursuant to TMC Section 5.52.090.6, the hearing body, upon receipt of a timely notice of appeal, shall set a date for a hearing within five days of the date of such receipt. The hearing body shall render a decision within five days of the conclusion of the hearing. The filing of such appeal shall not stay the action of the GlerkFinance Director. D. The decision of the hearing body on an appeal from a decision of the Clerk Finance Director shall be based upon a preponderance of the evidence. The burden of proof shall be on the GlerkFinance Director. E. The decision of the hearing body shall be final unless appealed to the superior court within 20 days of the date the decision is entered. Section 31. TMC Section 5.52.110, "Premises regulations," Amended. Ordinance Nos. 1573 §1 and 1475 §1 (part), as codified at TMC Section 5.52.110, are hereby amended to read as follows: It shall be unlawful and a violation of this chapter for a panoram operator, or anyone owning or controlling a panoram premises, to cause, maintain, or permit to exist any condition in violation of this section; and the ClerkFinance Director shall not license any panoram premises which do not conform to the requirements of this section, and shall revoke or suspend the license of any panoram premises, and the license of any operator thereof, which do not maintain conformity with these requirements. 1. The interior of every panoram station shall be visible from a continuous main aisle and shall not be obscured by any curtain, door, wall, or other form of partition or enclosure. 2. The panoram stations on any panoram premises shall be separated by partitions constructed of wood or other solid and opaque material. No openings in such partitions for ventilation or other purposes shall extend higher than 12 inches from the floor or lower than 84 inches from the floor. 3. The licensee shall not permit any doors to areas on the premises which are available for use by persons other than the licensee or employees of the licensee to be locked during business hours. 4. The licensee shall maintain illumination equally distributed in all parts of the premises available for use by the public, at all times when the premises are open or when any member of the public is permitted to enter and remain therein. 5. The entire floor area of a panoram booth or stall must be level with the continuous main aisle. No steps, ramps or risers are allowed in any such booth or stall. 6. The licensee shall permanently post and maintain on the interior and exterior of each booth or stall on the panoram premises a sign with one -inch lettering on a contrasting background stating: W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc ,1F- cW:bjs Page 15 of 22 17 "Occupancy of this booth is at all times limited to only one person. Violators are subject to criminal prosecution under TMC Section 5.52.130." 7. The licensee shall not operate or maintain any warning system or device, of any nature or kind, for the purpose of warning customers or patrons or any other persons occupying panoram booths or stalls located on the licensee's premises that Police officers or City health, fire, licensing or building inspectors are approaching or have entered to the licensee's premises. 8. A licensed panoram operator shall be on the premises at all times that the panoram premises is open to the public for business. Section 32. TMC Section 5.56.020, "Definitions," Amended. Ordinance Nos. 1910 §1, 1747 §1 (part), 1604 §1 and 1490 §2 (part), as codified at TMC Section 5.56.020, are hereby amended to read as follows: For the purposes of this chapter, the words set out in this section shall have the following meanings: A. "Adult entertainment" means: 1. Any exhibition, performance or dance of any type conducted in a premises where such exhibition, performance, or dance involves a person who is unclothed or in such costume, attire, or clothing as to expose any portion of the female breast below the top of the areola or any portion of the pubic region, anus, buttocks, vulva or genitals, or wearing any device or covering exposed to view which simulates the appearance of any portion of the female breast below the top of the areola or any portion of the pubic region, anus, buttocks, vulva or genitals, or human male genitals in a discernibly turgid state, even if completely and opaquely covered; or 2. Any exhibition, performance or dance of any type conducted in a premises where such exhibition, performance or dance is distinguished or characterized by a predominant emphasis on the depiction, description, simulation or relation to the following specified sexual activities: (a) Human genitals in a state of sexual stimulation or arousal; (b) Acts of human masturbation, sexual intercourse or sodomy; (c) Fondling or other erotic touching of human genitals, pubic region, buttocks or female breast, or 3. Any exhibition, performance or dance which is intended to sexually stimulate any member of the public and which is conducted on a regular basis or as a substantial part of the premises activity. This includes, but is not limited to, any such exhibition, performance or dance performed for, arranged with or engaged in with fewer than all members of the public on the premises at that time, with separate consideration paid, either directly or indirectly, for such performance, exhibition or dance and which is commonly referred to as table dancing, couch dancing, taxi dancing, lap dancing, private dancing or straddle dancing. W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 16 of 22 IMI B. "Adult entertainment cabaret" means any premises open to the public in which there is at any time an exhibition or dance constituting "adult entertainment" as described in TMC Section 5.56.020.A, provided for the use or benefit of a member or members of the adult public, or advertised for the use or benefit of a member or members of the adult public; provided, that "adult entertainment cabaret" does not include any tavern or other business that maintains a liquor license. D "Employee" means any and all persons, including entertainers, who work in or at or render any services directly related to the operation of an adult entertainment cabaret. D "Entertainer" means any person who performs any entertainment, exhibition or dance of any type within an adult entertainment cabaret, whether or not such person or anyone else charges or accepts a fee for such entertainment, exhibition, or dance. FE. "Entertainment" means any exhibition or dance of any type, pantomime, modeling or any other performance. C Finance Director" means the City GleFkFinance Director or his /her designee who is designated by the Mayor as licensing official under this chapter. G. "Manager" means any person licensed as a manager under this chapter. H. "Member of the public" means any customer, patron, club member, or person, other than an employee as defined in this section, who is invited or admitted to an adult cabaret. I. "Operator" means all persons who own, operate, direct, oversee, conduct, maintain, or effectively exert management control or authority over an adult entertainment cabaret or its affairs, without regard to whether such person(s) owns the premises in which the adult entertainment cabaret does business. An Operator "effectively exerts management control or authority" when he or she actually does, or is in a position to, participate in the management, direction or oversight of an adult entertainment cabaret or its affairs, whether or not such person's name appears on any public record filed with any government agency in connection with an adult entertainment establishment or any parent company or affiliate. An Operator's "parent company or affiliate" means any other person which owns 50% or more of any class of an operator's stock, or which effectively exerts management control or authority over an operator. J. "Performance area" means an area no larger than the area beginning six feet away from, and running parallel to, the front edge of a stage on which adult entertainment is permitted to occur, and which extends no deeper than the depth of that stage. K. "Person" means any individual, partnership, corporation, trust, incorporated or unincorporated association, marital community, joint venture, governmental entity, or other entity or group of persons, however organized. W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 17 of 22 19 Section 33. TMC Section 5.56.030, "Adult entertainment cabaret licenses," subparagraph F, Amended. Ordinance Nos. 1747 §1 (part) and 1490 §2 (part), as codified at TMC Section 5.56.030, subparagraph F, are hereby amended to read as follows: F. Renewals In order to obtain renewal of a current adult entertainment cabaret license for the next year, a license holder must file an application for renewal with the GlerkFinance Director. The renewal fee for each year is $500.00. Section 34. TMC Section 5.56.040, "Manager's licenses and entertainer's licenses," subparagraph F, Amended. Ordinance Nos. 1747 §1 (part), 1651 §1 and 1490 §2 (part), as codified at TMC Section 5.56.040, subparagraph F, are hereby amended to read as follows: F. Renewals In order to obtain renewal of a current manager's license or entertainer's license for the next year, a license holder must file an application for renewal with the CteFk Finance Director. The renewal fee for each year is $75.00. Section 35. TMC Section 5.56.050, "License applications," Amended. Ordinance Nos. 1747 §1 (part), 1604 §2 and 1490 §2 (part), as codified at TMC Section 5.56.050, are hereby amended to read as follows: A. Adult Entertainment Cabaret License Any application for an adult entertainment cabaret license or renewal thereof shall be submitted in the true name of the operator of the adult entertainment cabaret to which the application pertains. The true operator or his /her agent, under penalty of perjury, shall sign and notarize or certify that all of the operators as defined in TMC Section 5.56.020 are listed and all of the information provided is true and correct. Any change in ownership in the adult entertainment cabaret must be reported to the GlerlEFinance Director within 20 days of such change(s). Each such application shall be submitted on a form supplied by the Gler Finance Director. The form shall require the following information: 1. If the applicant is an individual or partnership, the names, home addresses, home telephone numbers, dates and places of birth, and social security numbers of all operator(s). If the applicant is a partnership, all such information must be provided for all general partners; 2. If the applicant is a corporation, the names, addresses, telephone numbers, and social security numbers of all operators, and of all corporate officers and directors. The same information shall be required from each parent company or affiliate; cabaret; 3. The name, address, and telephone number of the adult entertainment 4. The name, address and telephone number of the owner of the property on which the adult entertainment cabaret is located; 5. The names, addresses, and telephone numbers of all employees of the adult entertainment cabaret; W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 18 of 22 20 6. A statement detailing whether the applicant or any operator, partner, corporate officer, director, or shareholder of 50% or more of any class of an operator's stock, holds any other licenses under this chapter or any similar adult entertainment or sexually oriented business ordinance, including motion picture theaters and panorams from the City or another city, county, or state, and if so, the names and addresses of each other licensed business and the jurisdiction(s) in which such businesses are located; and 7. A description of the sexually oriented adult entertainment business history of the applicant; whether such person or entity, in previously operating in this or another city, county or state, has had a business license or adult entertainment license revoked or suspended, the reason therefore, and the activity or occupation of the applicant subsequent to such action, suspension or revocation. B. Manager's License or Entertainer's License 1. Any application for a manager's license or entertainer's license, or any renewal thereof, shall be signed by the applicant and notarized or certified to be true under penalty of perjury. Each such application shall be submitted on a form supplied by the GlerkFinance Director. The form shall require a statement of the applicant's name, home address, home telephone number, date and place of birth, social security number, Washinqton State Unified Business Identifier (UBI) number, and the name, address and phone number of the adult entertainment cabaret or cabarets at which the applicant will work, and any stage names or nicknames used in entertaining. The form shall also reauire the applicant to disclose all prior criminal convictions. includina the crime(s) convicted of, place, and the approximate date of each such conviction. 2. At the time of application or renewal, the applicant shall present picture identification which shall include (1) a valid motor vehicle operator's license, issued by the state of Washington, bearing the applicant's photograph and date of birth; or (2) a valid Washington state issued identification card bearing the applicant's photograph and date of birth. At the time of application or renewal and again b etween '„I„ 1 and jul„ 14 eveFy ,soar the applicant shall be photographed by the GIeFkTukwila Police Department or her deskjpRe for the GlerkFinance Director's records and the Police Department's records. Failure to app ear for a phetogFanh between fishy 1 and li ly OR rsc and zia FAre preSCribe by }ho ('lor s hall resu in linonse C. Duty to Supplement Application In the event that any information on any application for a license under this chapter becomes outdated or otherwise inaccurate or incomplete, including but not limited to a change in the applicant's name, address, telephone number. or stage name. or substantial changes to an applicant's appearance, including but not limited to a chanae in hair style and color, or facial or other features including tattoos, an applicant or license holder shall appear before the GlerkFinance Director within 20 days and provide current information, including, when applicable, being photographed by the GlerkTukwila Police Department or her designee to accurately reflect any change in looks when compared to the most recent photograph available under TMC Section 5.56.050.B. W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 19 of 22 21 Section 36. TMC Section 5.56.060, "Issuance of licenses and renewals," Amended. Ordinance Nos. 1747 §1 (part), 1601 §1 and 1490 §2 (part), as codified at TMC Section 5.56.060, are hereby amended to read as follows: A. Upon receipt of any application for a license under this chapter, the GlerkFinance Director shall refer the application to the Police Department which shall investigate the truth of the statements in the application and shall investigate the applicant's compliance with the standards of this chapter. Upon receipt of any complete application for a license, the GlerkFinance Director shall further issue a temporary license, pending disposition of the application or completion of the term of any license suspension issued pursuant to this chapter. The temporary license shall expire upon issuance of a license or renewal thereof or notice of non issuance. The holder of a temporary license is subject to all requirements, standards and penalty provisions of this chapter. B. After an investigation, the GlerkFinance Director shall issue a license if the GlerkFinance Director finds: 1. That the applicant complies with all applicable requirements and standards of this chapter, and 2. That the applicant has not made any false, .misleading or fraudulent statement of fact in the application for a license, or in any report or record required to be filed with the G1eF Finance Director. In the event the applicant has not met the enumerated requirements, after the required investigations, the GlerkFinance Director shall issue a notice of non issuance of the license. Notice of non issuance shall specify the reasons therefor. C. Upon receipt of any application for renewal of a license under this chapter, the Gler-kFinance Director shall issue the renewal unless the GlerkFinance Director has information which indicates that the applicant would not qualify for the initial issuance of a license under TMC Section 5.56.060.B. In the event the applicant has not met the enumerated requirements, after the required investigation, the Glerk Finance Director shall issue the renewal or notice of non renewal of the application. Notice of non renewal shall specify the reasons therefor. D. Each adult entertainment cabaret shall maintain and retain for a period of two years the names, addresses, home telephone numbers, social security numbers, and ages of each person employed or otherwise permitted to appear or perform on the premises as an entertainer, including independent contractors and employees. This information shall be available for inspection by the GlerkFinance Director or the Tukwila Police Department during the adult entertainment cabaret's business hours. Section 37. TMC Section 5.56.090, "Revocation or suspension of licenses," Amended. Ordinance Nos. 1747 §1 (part) and 1490 §2 (part), as codified at TMC Section 5.56.090, are hereby amended to read as follows: A. The GlerkFinance Director may revoke any license under this chapter or may suspend any such license for a period of time not to exceed one year where one or more of the following conditions exist: W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 20 of 22 22 1. The license was procured by fraud, by a materially false or misleading representation of fact in the application or in any report or record required to be filed with the CIeir Finance Director; or 2. The building, structure, equipment, operation or location of the business for which the license was issued does not comply with the requirements or standards of this chapter. B. Upon determination that grounds for revocation or suspension of a license exist, the CteFkFinance Director shall send the license holder a notice of revocation or suspension. Such notice shall be effective upon the expiration of the ten -day appeal period set forth in TMC Section 5.56.100.A, unless a timely notice of appeal is filed as specified therein. Section 38. TMC Section 5.60.070, "Enforcement," Amended. Ordinance No. 1918 §8, as codified at TMC Section 5.60.070, is hereby amended to read as follows: If the Chief of Police finds that any licensee has violated or failed to comply with any provisions of this chapter, he /she shall make a written record of such finding and shall specify therein the particulars; and will inform the Tukwila City- SIeFkFinance Director. Upon recommendation of the Chief of Police, the C ity Glerk Finance Director may revoke, suspend, or refuse to issue the City of Tukwila license for that business for a period not less than 90 days or not more than 1 year. This determination shall be made in consultation with the Police Chief and shall be based on the severity of the violation(s). Section 39. Repealer for Tukwila Municipal Code 5.32 "Trailer Parks." Ordinance Nos. 266, 358 (part), and 577 (part) are hereby repealed. Section 40. 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 41. 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 42. 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. W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 21 of 22 23 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY Shelley M. Kerslake, City Attorney. Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: \Word Processing \Ordinances \Title 5 housekeeping revisions strike -thru 10- 7- 11.doc JF- CW:bjs Page 22 of 22 24 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator DATE: October 12, 2011 SUBJECT: Changing Business License and Revenue Generating Regulatory License (RGRL) fee into a combined rate of $67 per full -time equivalent employee and adding language to exempt qualified court interpreters from both the license fee and the RGRL fee ISSUE Many customers as well as staff in Finance and other departments have given feedback that the current business license and Revenue Generating Regulatory License (RGRL) fee structures are overly complex and difficult to understand. In addition, it has been past practice to exempt qualified court interpreters making less than $12,000 in gross annual revenue from obtaining a business license, however, the current language in the Code does not include this group in the exemptions section of Title 5, Chapter 5.04. ITT o111 i! 1n7 At the September 7, 2011 Finance Safety Committee meeting, Staff provided information regarding the benefits of a combined business license fee of $67 per full time equivalent employee. The committee requested outreach efforts to inform the business community of this potential change in licensing fees to provide organizations the opportunity to give feedback and comments to the City. Additionally, court interpreters have been exempt from obtaining a Tukwila business license, but this practice has been absent from the Code. DISCUSSION To increase awareness in the business community and encourage member input, Staff has completed the following: Present overview of new rate structure at the October 4, 2011 Southwest King County Chamber of Commerce Direct mail to all active Tukwila licensed businesses sent out on 9 -23 -2011 Utility billing inserts sent out on 9 -28 -2011 City of Tukwila website, Tukwila News and Notes Section Finance home page 25 INFORMATIONAL MEMO Page 2 Although approximately 71% of Tukwila businesses will benefit in paying less for their business license from transitioning to a combined business license fee of $67 per full time equivalent employee, the City received both favorable and unfavorable comments from business owners and managers regarding the new proposed fee. A summary of the responses is attached. Also, consistent with past practice, language clarifying the exemption of court interpreters making less than $12,000 in gross annual revenue needs to be included in the Code. RECOMMENDATION The Council is being asked to adopt a combined business license and RGRL fee of $67 per full -time equivalent employee and approve the added language for exempting qualified court interpreters in TMC Chapter 5.04. The Council is being asked to consider this issue at the October 24, 2011 Committee of the Whole Meeting and the November 7, 2011 Regular Meeting. ATTACHMENTS -Info Memo dated September 1, 2011 to Finance Safety Business License and RGRL Fee Analysis spreadsheet Summary of Community Responses -Draft Ordinance M2011 Info Memos Councilll BusinessLicenseFeeChanges10- 18- 11Revised.docx 26 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Jennifer Ferrer -Santa Ines, Sr. Fiscal Coordinator DATE: September 1, 2011 SUBJECT: Business License and RGRL Fees ISSUE Many customers as well as staff in Finance and other departments have given feedback that the current business license and Revenue Generating Regulatory License (RGRL) fee structures are overly complex and difficult to understand. BACKGROUND The following business license fees were adopted by Council on November 15, 2010 with Ordinance No. 2315: of Emplovees Fee 0 to 10 $100.00 11 to 20 $150.00 21 to 50 $300.00 51 to 100 $400.00 101 and up $600.00 Home Occupation $50.00 On July 19, 2010 Council adopted Ordinance No. 2297 which implemented an RGRL fee of $55 per full time equivalent employee. Staff has attempted to resolve some differences between the two ordinances that have caused unforeseen issues since implementing both fees. One of the concerns expressed by customers is that because the two fees are calculated differently, completion of the renewal or application form is unduly burdensome. Finance staff has noted that businesses frequently pay one fee or the other, whichever is lower. Well over half the renewal and application forms that have come in since December 2010 have been completed incorrectly. The number of renewals or applications completed online that are incorrect is at least as high. DISCUSSION In an attempt to simplify the business license and RGRL fee calculation process, staff looked at ways to change the fee structure of one or both. Some cities in Western 27 INFORMATIONAL MEMO Page 2 Washington that have an RGRL fee charge one combined fee per full time equivalent employee. The fee is split by the Finance department, after being receipted in, into the business license and RGRL components. This split is a relatively easy process given modern automated cash receipting systems. Below is a comparison of what a business with 10 full -time employees (FTE) would pay for a business license in the cities below. Base License Fee -flat amount Base License Fee- head count RGRL Fee -per FTE Combination Rate Fee Total Business License Fees Kirkland Lynnwood Redmond Renton 100.00 122.50 1,000.00 850.00 910.00 550.00 $1,100.00 972.50 910.00 550.00 650.00 Tukwila 100.00 550.00 From the information above, cities are either charging a combined rate or a flat amount for the base fee plus RGRL for business licenses. Only Tukwila has a base license fee based on head count and an RGRL fee based on a separate method, by full -time equivalent (FTE). An analysis of Tukwila's current fee structure, as compared to what a combined fee might look like, reveals the City could charge a combined fee of $67 per full time equivalent employee. This combined fee of $67 would replace the current separate business license and RGRL fees, and the overall revenue collected would be revenue neutral in comparison to the revenue that is currently coming in for business licenses and RGRL fees. A combined fee of $67 would result in a lowering of fees for many small businesses. This is because a business with one employee currently pays a business license fee of $100, equivalent to $100 per employee plus an RGRL fee of $55. A business of 10 employees also pays $100, or $10 per employee, plus an RGRL fee of $550. The overall average business license fee per employee is just under $5. However, smaller businesses are paying a proportionately higher fee per employee. For instance, a business with 100 employees pays a business license fee of $400, or $4 per employee. Below is a chart showing what the current fee structure costs for employers of 1 -10 employees, what the new fee structure would cost those businesses, and the proportion of businesses in each category: C:1Temp\ Content. OutlooklCBK0060U1 InfoMemo _BusinessLicenseFeeChanges.docx 28 INFORMATIONAL MEMO Page 3 As you can see, the new fee structure would result in lower total fees for employers with 1 -8 employees. This group represents 65.72% of the businesses in Tukwila. Total fees would be lower for some other larger employers too. In total, fees would go down for 71.08% of employers in the City. These lower fees would be supplemented by somewhat higher fees for the City's largest employers. We have 25 businesses in the City with 100 or more employees. Under the current fee structure, these businesses pay about $588,000 in business license and RGRL fees. Under the new fee structure, these 25 businesses would pay $698,000 in total fees. The average increase for this group would be 15.61 Following are the advantages of implementing a combined business license and RGRL fee: A combined fee is much easier for businesses to understand, and makes the renewal and application forms easier to complete. There would be one fee calculation. The business would just enter their number of full time equivalent employees, and the combined fee would be calculated based on that number. The business would not have to calculate two separate fees and add them together, as they are doing now. The fee is more equitable for smaller businesses. Now the fees paid by the City's smallest businesses, those with 1 -8 employees (66% of businesses in Tukwila), are proportionately higher per employee than the fees paid by larger employers. In total, approximately 71% of businesses in Tukwila would pay lower fees with the new fee structure. A simplified fee structure would result in fewer businesses paying incorrect amounts and therefore being subject to late penalties and multiple handling of accounts by Finance staff. Business licenses would be issued much faster if we had a higher percentage of businesses that calculate and pay the correct amount due the first time they send something in to Finance. C:ITemp\Content.OutlooklCB K0060U\I nfoMemo_B usinessLicenseFeeCh ang es. docx 29 Current Fee Structure Proposed Bus. Current Bus License License Business Fee Per 55.00 Total Fee 67.00 #of EE License Fee Employee RGRL Now Combined Fee Difference #of Businesses 1 100 100.00 55.00 155.00 67.00 88.00) 431 24.59% 2 100 50.00 110.00 210.00 134.00 (76.00) 195 11.12% 3 100 33.33 165.00 265.00 201.00 (64.00) 120 6.85% 4 100 25.00 220.00 320.00 268.00 (52.00) 106 6.05% 5 100 20.00 275.00 375.00 335.00 (40.00) 101 5.76% 6 100 16.67 330.00 430.00 402.00 (28.00) 85 4.85% 7 100 14.29 385.00 485.00 469.00 (16.00) 56 3.19% 8 100 12.50 440.00 540.00 536.00 (4.00) 58 3.31% 9 100 11.11 495.00 595.00 603.00 8.00 36 2.05% 10 100 10.00 550.00 650.00 670.00 20.00 45 2.57% As you can see, the new fee structure would result in lower total fees for employers with 1 -8 employees. This group represents 65.72% of the businesses in Tukwila. Total fees would be lower for some other larger employers too. In total, fees would go down for 71.08% of employers in the City. These lower fees would be supplemented by somewhat higher fees for the City's largest employers. We have 25 businesses in the City with 100 or more employees. Under the current fee structure, these businesses pay about $588,000 in business license and RGRL fees. Under the new fee structure, these 25 businesses would pay $698,000 in total fees. The average increase for this group would be 15.61 Following are the advantages of implementing a combined business license and RGRL fee: A combined fee is much easier for businesses to understand, and makes the renewal and application forms easier to complete. There would be one fee calculation. The business would just enter their number of full time equivalent employees, and the combined fee would be calculated based on that number. The business would not have to calculate two separate fees and add them together, as they are doing now. The fee is more equitable for smaller businesses. Now the fees paid by the City's smallest businesses, those with 1 -8 employees (66% of businesses in Tukwila), are proportionately higher per employee than the fees paid by larger employers. In total, approximately 71% of businesses in Tukwila would pay lower fees with the new fee structure. A simplified fee structure would result in fewer businesses paying incorrect amounts and therefore being subject to late penalties and multiple handling of accounts by Finance staff. Business licenses would be issued much faster if we had a higher percentage of businesses that calculate and pay the correct amount due the first time they send something in to Finance. C:ITemp\Content.OutlooklCB K0060U\I nfoMemo_B usinessLicenseFeeCh ang es. docx 29 INFORMATIONAL MEMO Page 4 A simplified fee would mean less time that it takes for staff to answer questions about how to calculate the fee, less staff time for following up with businesses in writing or over the phone if they have paid incorrect amounts, and faster depositing of payments received. Staff will continue to investigate other ways to improve and simplify the business license and RGRL fee processes. We have encountered many technical issues since implementing the new fees, and these issues continue to this day but remain a high priority for resolution. We also have a number of much needed improvements in the works for the forms that are used for renewals and applications. These changes will be made regardless of whether the fee structure is changed or not. Options There are a few options to consider in how we can restructure the calculation of business license fees. The alternatives are: 1) adoption of a combined business license and RGRL fee of $67 per full -time equivalent employee, and or 2) modify calculation of the base license fee from number of employees to full -time equivalent (FTE) similar to that of calculating RGRL, or 3) Do nothing -leave fee structure and calculation as is. RECOMMENDATION Select an option from above. If option 1 and or 2 is selected, Staff will return with a draft Ordinance for Finance Safety Committee to review on the 9/20 F &S meeting. ATTACHMENT Business License and RGRL Fee Analysis spreadsheet Cffemp\ Content. Outlook\ CBK0060U1 1nfoMemo _BusinessLicenseFeeChang es. docx 30 City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference # of Businesses 1 100 100.00 55.00 155.00 67.00 (88.00) 431 24.59% 2 100 50.00 110.00 210.00 134.00 (76.00) 195 11.12% 3 100 33.33 165.00 265.00 201.00 (64.00) 120 6.85% 4 100 25.00 220.00 320.00 268.00 (52.00) 106 6.05% 5 100 20.00 275.00 375.00 335.00 (40.00) 101 5.76% 6 100 16.67 330.00 430.00 402.00 (28.00) 85 4.85% 7 100 14.29 385.00 485.00 469.00 (16.00) 56 3.19% 8 100 12.50 440.00 540.00 536.00 (4.00) 58 3.31% 65.72% 65.72% 9 100 11.11 495.00 595.00 603.00 8.00 36 2.05% 10 100 10.00 550.00 650.00 670.00 20.00 45 2.57% 11 150 13.64 605.00 755.00 737.00 (18.00) 29 1.65% 12 150 12.50 660.00 810.00 804.00 (6.00) 34 1.94% 3.59% 13 150 11.54 715.00 865.00 871.00 6.00 25 1.43% 14 150 10.71 770.00 920.00 938.00 18.00 22 1.25% 15 150 10.00 825.00 975.00 1,005.00 30.00 23 1.31% 16 150 9.38 880.00 1,030.00 1,072.00 42.00 17 0.97% 17 150 8.82 935.00 1,085.00 1,139.00 54.00 29 1.65% 18 150 8.33 990.00 1,140.00 1,206.00 66.00 18 1.03% 19 150 7.89 1,045.00 1,195.00 1,273.00 78.00 17 0.97% 20 150 7.50 1,100.00 1,250.00 1,340.00 90.00 30 1.71% 21 300 14.29 1,155.00 1,455.00 1,407.00 (48.00) 4 0.23% 22 300 13.64 1,210.00 1,510.00 1,474.00 (36.00) 12 0.68% 23 300 13.04 1,265.00 1,565.00 1,541.00 (24.00) 5 0.29% 24 300 12.50 1,320.00 1,620.00 1,608.00 (12.00) 10 0.57% 1.77% 25 300 12.00 1,375.00 1,675.00 1,675.00 - 14 0.80% 71.08% 26 300 11.54 1,430.00 1,730.00 1,742.00 12.00 7 0.40% W City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed * Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference # of Businesses 27 300 11.11 1,485.00 1,785.00 1,809.00 24.00 8 0.46% 28 300 10.71 1,540.00 1,840.00 1,876.00 36.00 5 0.29% 29 300 10.34 1,595.00 1,895.00 1,943.00 48.00 6 0.34% 30 300 10.00 1,650.00 1,950.00 2,010.00 60.00 9 0.51% 31 300 9.68 1,705.00 2,005.00 2,077.00 72.00 2 0.11% 32 300 9.38 1,760.00 2,060.00 2,144.00 84.00 8 0.46% 33 300 9.09 1,815.00 2,115.00 2,211.00 96.00 6 0.34% 34 300 8.82 1,870.00 2,170.00 2,278.00 108.00 5 0.29% 35 300 8.57 1,925.00 2,225.00 2,345.00 120.00 5 0.29% 36 300 8.33 1,980.00 2,280.00 2,412.00 132.00 3 0.17% 37 300 8.11 2,035.00 2,335.00 2,479.00 144.00 8 0.46% 38 300 7.89 2,090.00 2,390.00 2,546.00 156.00 0.00% 39 300 7.69 2,145.00 2,445.00 2,613.00 168.00 5 0.29% 40 300 7.50 2,200.00 2,500.00 2,680.00 180.00 11 0.63% 41 300 7.32 2,255.00 2,555.00 2,747.00 192.00 4 0.23% 42 300 7.14 2,310.00 2,610.00 2,814.00 204.00 6 0.34% 43 300 6.98 2,365.00 2,665.00 2,881.00 216.00 4 0.23% 44 300 6.82 2,420.00 2,720.00 2,948.00 228.00 3 0.17% 45 300 6.67 2,475.00 2,775.00 3,015.00 240.00 2 0.11% 46 300 6.52 2,530.00 2,830.00 3,082.00 252.00 0.00% 47 300 6.38 2,585.00 2,885.00 3,149.00 264.00 4 0.23% 48 300 6.25 2,640.00 2,940.00 3,216.00 276.00 4 0.23% 49 300 6.12 2,695.00 2,995.00 3,283.00 288.00 4 0.23% 50 300 6.00 2,750.00 3,050.00 3,350.00 300.00 4 0.23% 51 400 7.84 2,805.00 3,205.00 3,417.00 212.00 2 0.11% 52 400 7.69 2,860.00 3,260.00 3,484.00 224.00 2 0.11% City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference 53 400 7.55 2,915.00 3,315.00 3,551.00 236.00 54 400 7.41 2,970.00 3,370.00 3,618.00 248.00 55 400 7.27 3,025.00 3,425.00 3,685.00 260.00 56 400 7.14 3,080.00 3,480.00 3,752.00 272.00 57 400 7.02 3,135.00 3,535.00 3,819.00 284.00 58 400 6.90 3,190.00 3,590.00 3,886.00 296.00 59 400 6.78 3,245.00 3,645.00 3,953.00 308.00 60 400 6.67 3,300.00 3,700.00 4,020.00 320.00 61 400 6.56 3,355.00 3,755.00 4,087.00 332.00 62 400 6.45 3,410.00 3,810.00 4,154.00 344.00 63 400 6.35 3,465.00 3,865.00 4,221.00 356.00 64 400 6.25 3,520.00 3,920.00 4,288.00 368.00 65 400 6.15 3,575.00 3,975.00 4,355.00 380.00 66 400 6.06 3,630.00 4,030.00 4,422.00 392.00 67 400 5.97 3,685.00 4,085.00 4,489.00 404.00 68 400 5.88 3,740.00 4,140.00 4,556.00 416.00 69 400 5.80 3,795.00 4,195.00 4,623.00 428.00 70 400 5.71 3,850.00 4,250.00 4,690.00 440.00 71 400 5.63 3,905.00 4,305.00 4,757.00 452.00 72 400 5.56 3,960.00 4,360.00 4,824.00 464.00 73 400 5.48 4,015.00 4,415.00 4,891.00 476.00 74 400 5.41 4,070.00 4,470.00 4,958.00 488.00 75 400 5.33 4,125.00 4,525.00 5,025.00 500.00 76 400 5.26 4,180.00 4,580.00 5,092.00 512.00 77 400 5.19 4,235.00 4,635.00 5,159.00 524.00 78 400 5.13 4,290.00 4,690.00 5,226.00 536.00 # of Businesses 1 0.06% 3 0.17% 3 0.17% 1 0.06% 0.00% 1 0.06% 2 0.11% 5 0.29% 1 0.06% 3 0.17% 2 0.11% 3 0.17% 4 0.23% 1 0.06% 0.00% 1 0.06% 1 0.06% 0.00% 1 0.06% 0.00% 0.00% 1 0.06% 3 0.17% 1 0.06% 3 0.17% 0.00% W City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference 79 400 5.06 4,345.00 4,745.00 5,293.00 548.00 80 400 5.00 4,400.00 4,800.00 5,360.00 560.00 81 400 4.94 4,455.00 4,855.00 5,427.00 572.00 82 400 4.88 4,510.00 4,910.00 5,494.00 584.00 83 400 4.82 4,565.00 4,965.00 5,561.00 596.00 84 400 4.76 4,620.00 5,020.00 5,628.00 608.00 85 400 4.71 4,675.00 5,075.00 5,695.00 620.00 86 400 4.65 4,730.00 5,130.00 5,762.00 632.00 87 400 4.60 4,785.00 5,185.00 5,829.00 644.00 88 400 4.55 4,840.00 5,240.00 5,896.00 656.00 89 400 4.49 4,895.00 5,295.00 5,963.00 668.00 90 400 4.44 4,950.00 5,350.00 6,030.00 680.00 91 400 4.40 5,005.00 5,405.00 6,097.00 692.00 92 400 4.35 5,060.00 5,460.00 6,164.00 704.00 93 400 4.30 5,115.00 5,515.00 6,231.00 716.00 94 400 4.26 5,170.00 5,570.00 6,298.00 728.00 95 400 4.21 5,225.00 5,625.00 6,365.00 740.00 96 400 4.17 5,280.00 5,680.00 6,432.00 752.00 97 400 4.12 5,335.00 5,735.00 6,499.00 764.00 98 400 4.08 5,390.00 5,790.00 6,566.00 776.00 99 400 4.04 5,445.00 5,845.00 6,633.00 788.00 100 400 4.00 5,500.00 5,900.00 6,700.00 800.00 101 600 5.94 5,555.00 6,155.00 6,767.00 612.00 102 600 5.88 5,610.00 6,210.00 6,834.00 624.00 103 600 5.83 5,665.00 6,265.00 6,901.00 636.00 104 600 5.77 5,720.00 6,320.00 6,968.00 648.00 # of Businesses 0.00% 2 0.11% 3 0.17% 0.00% 1 0.06% 1 0.06% 0.00% 1 0.06% 2 0.11% 0.00% 1 0.06% 0.00% 2 0.11% 0.00% 0.00% 1 0.06% 1 0.06% 1 0.06% 0.00% 0.00% 1 0.06% 0.00% 1 0.06% 0.00% 0.00% 2 0.11% City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference 105 600 5.71 5,775.00 6,375.00 7,035.00 660.00 106 600 5.66 5,830.00 6,430.00 7,102.00 672.00 107 600 5.61 5,885.00 6,485.00 7,169.00 684.00 108 600 5.56 5,940.00 6,540.00 7,236.00 696.00 109 600 5.50 5,995.00 6,595.00 7,303.00 708.00 110 600 5.45 6,050.00 6,650.00 7,370.00 720.00 111 600 5.41 6,105.00 6,705.00 7,437.00 732.00 112 600 5.36 6,160.00 6,760.00 7,504.00 744.00 113 600 5.31 6,215.00 6,815.00 7,571.00 756.00 114 600 5.26 6,270.00 6,870.00 7,638.00 768.00 115 600 5.22 6,325.00 6,925.00 7,705.00 780.00 116 600 5.17 6,380.00 6,980.00 7,772.00 792.00 117 600 5.13 6,435.00 7,035.00 7,839.00 804.00 118 600 5.08 6,490.00 7,090.00 7,906.00 816.00 119 600 5.04 6,545.00 7,145.00 7,973.00 828.00 120 600 5.00 6,600.00 7,200.00 8,040.00 840.00 121 600 4.96 6,655.00 7,255.00 8,107.00 852.00 122 600 4.92 6,710.00 7,310.00 8,174.00 864.00 123 600 4.88 6,765.00 7,365.00 8,241.00 876.00 124 600 4.84 6,820.00 7,420.00 8,308.00 888.00 125 600 4.80 6,875.00 7,475.00 8,375.00 900.00 126 600 4.76 6,930.00 7,530.00 8,442.00 912.00 127 600 4.72 6,985.00 7,585.00 8,509.00 924.00 128 600 4.69 7,040.00 7,640.00 8,576.00 936.00 129 600 4.65 7,095.00 7,695.00 8,643.00 948.00 130 600 4.62 7,150.00 7,750.00 8,710.00 960.00 # of Businesses 1 0.06% 0.00% 0.00% 1 0.06% 2 0.11% 1 0.06% 0.00% 1 0.06% 0.00% 0.00% 0.00% 1 0.06% 0.00% 2 0.11% 0.00% 1 0.06% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1 0.06% 0.00% 0.00% 0.00% W 6) City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed * Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference 131 600 4.58 7,205.00 7,805.00 8,777.00 972.00 132 600 4.55 7,260.00 7,860.00 8,844.00 984.00 133 600 4.51 7,315.00 7,915.00 8,911.00 996.00 134 600 4.48 7,370.00 7,970.00 8,978.00 1,008.00 135 600 4.44 7,425.00 8,025.00 9,045.00 1,020.00 136 600 4.41 7,480.00 8,080.00 9,112.00 1,032.00 137 600 4.38 7,535.00 8,135.00 9,179.00 1,044.00 138 600 4.35 7,590.00 8,190.00 9,246.00 1,056.00 139 600 4.32 7,645.00 8,245.00 9,313.00 1,068.00 140 600 4.29 7,700.00 8,300.00 9,380.00 1,080.00 141 600 4.26 7,755.00 8,355.00 9,447.00 1,092.00 142 600 4.23 7,810.00 8,410.00 9,514.00 1,104.00 143 600 4.20 7,865.00 8,465.00 9,581.00 1,116.00 144 600 4.17 7,920.00 8,520.00 9,648.00 1,128.00 145 600 4.14 7,975.00 8,575.00 9,715.00 1,140.00 146 600 4.11 8,030.00 8,630.00 9,782.00 1,152.00 147 600 4.08 8,085.00 8,685.00 9,849.00 1,164.00 148 600 4.05 8,140.00 8,740.00 9,916.00 1,176.00 149 600 4.03 8,195.00 8,795.00 9,983.00 1,188.00 150 600 4.00 8,250.00 8,850.00 10,050.00 1,200.00 151 600 3.97 8,305.00 8,905.00 10,117.00 1,212.00 152 600 3.95 8,360.00 8,960.00 10,184.00 1,224.00 153 600 3.92 8,415.00 9,015.00 10,251.00 1,236.00 154 600 3.90 8,470.00 9,070.00 10,318.00 1,248.00 155 600 3.87 8,525.00 9,125.00 10,385.00 1,260.00 156 600 3.85 8,580.00 9,180.00 10,452.00 1,272.00 # of Businesses 0.00% 2 0.11% 0.00% 0.00% 2 0.11% 0.00% 0.00% 0.00% 0.00% 0.00% 1 0.06% 0.00% 0.00% 0.00% 0.00% 1 0.06% 0.00% 0.00% 0.00% 0.00% 1 0.06% 0.00% 0.00% 0.00% 0.00% 0.00% City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed * Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference 157 600 3.82 8,635.00 9,235.00 10,519.00 1,284.00 158 600 3.80 8,690.00 9,290.00 10,586.00 1,296.00 159 600 3.77 8,745.00 9,345.00 10,653.00 1,308.00 160 600 3.75 8,800.00 9,400.00 10,720.00 1,320.00 161 600 3.73 8,855.00 9,455.00 10,787.00 1,332.00 162 600 3.70 8,910.00 9,510.00 10,854.00 1,344.00 163 600 3.68 8,965.00 9,565.00 10,921.00 1,356.00 164 600 3.66 9,020.00 9,620.00 10,988.00 1,368.00 165 600 3.64 9,075.00 9,675.00 11,055.00 1,380.00 166 600 3.61 9,130.00 9,730.00 11,122.00 1,392.00 167 600 3.59 9,185.00 9,785.00 11,189.00 1,404.00 168 600 3.57 9,240.00 9,840.00 11,256.00 1,416.00 169 600 3.55 9,295.00 9,895.00 11,323.00 1,428.00 170 600 3.53 9,350.00 9,950.00 11,390.00 1,440.00 171 600 3.51 9,405.00 10,005.00 11,457.00 1,452.00 172 600 3.49 9,460.00 10,060.00 11,524.00 1,464.00 173 600 3.47 9,515.00 10,115.00 11,591.00 1,476.00 174 600 3.45 9,570.00 10,170.00 11,658.00 1,488.00 175 600 3.43 9,625.00 10,225.00 11,725.00 1,500.00 176 600 3.41 9,680.00 10,280.00 11,792.00 1,512.00 177 600 3.39 9,735.00 10,335.00 11,859.00 1,524.00 178 600 3.37 9,790.00 10,390.00 11,926.00 1,536.00 179 600 3.35 9,845.00 10,445.00 11,993.00 1,548.00 180 600 3.33 9,900.00 10,500.00 12,060.00 1,560.00 181 600 3.31 9,955.00 10,555.00 12,127.00 1,572.00 182 600 3.30 10,010.00 10,610.00 12,194.00 1,584.00 # of Businesses 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1 0.06% 0.00% 0.00% 1 0.06% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1 0.06% 0.00% 0.00% W CO City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference 183 600 3.28 10,065.00 10,665.00 12,261.00 1,596.00 184 600 3.26 10,120.00 10,720.00 12,328.00 1,608.00 185 600 3.24 10,175.00 10,775.00 12,395.00 1,620.00 186 600 3.23 10,230.00 10,830.00 12,462.00 1,632.00 187 600 3.21 10,285.00 10,885.00 12,529.00 1,644.00 188 600 3.19 10,340.00 10,940.00 12,596.00 1,656.00 189 600 3.17 10,395.00 10,995.00 12,663.00 1,668.00 190 600 3.16 10,450.00 11,050.00 12,730.00 1,680.00 191 600 3.14 10,505.00 11,105.00 12,797.00 1,692.00 192 600 3.13 10,560.00 11,160.00 12,864.00 1,704.00 193 600 3.11 10,615.00 11,215.00 12,931.00 1,716.00 194 600 3.09 10,670.00 11,270.00 12,998.00 1,728.00 195 600 3.08 10,725.00 11,325.00 13,065.00 1,740.00 196 600 3.06 10,780.00 11,380.00 13,132.00 1,752.00 197 600 3.05 10,835.00 11,435.00 13,199.00 1,764.00 198 600 3.03 10,890.00 11,490.00 13,266.00 1,776.00 199 600 3.02 10,945.00 11,545.00 13,333.00 1,788.00 200 600 3.00 11,000.00 11,600.00 13,400.00 1,800.00 # of Businesses 0.00% 0.00% 1 0.06% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 21 1.20% 1 2 3 4 5 6 7 8 9 10 11 Community Responses- Combined Business License Fee @ $67 per full -time equivalent employee Date Business # of Employees Response Comments 9/26/2011 Muzak 13 Likes Want to express their support for the Streamlined Business License fee 9/26/2011 Farwest Paint 17 Dislikes being down 2 employees this year, they would have to pay more for 2012, $67 /fte is too much 9/27/2011 Olive Garden Bahama Breeze 72 f /t, 37 p/t 54 f /t, 26 p/t Dislikes " Would rather have fee based on # of employees. FTE too time consuming to calculate, must coordinate with payroll to get numbers for all employees. 9/27/2011 Husky Trucks 40 Dislikes Would cost both their companies over $1200 more each year. Already familiar with how to do last year's calculations. (2011 - $2500, 2012 $2680) 9/27/2011 True Blue Ink (Third Party Preparer) N/A Likes Last year's was too confusing, likes fees based on hrs worked. They have temp workers. They process over 700 business licenses a year for US & Canada. 9/27/2011 National Entertainment Network (Third Party Preparer) N/A Likes Last year was very confusing, compared to all the other ones she processes. 9/29/2011 Jharper contractors 20 Dislikes Suggests a flat fee, worried about B &O being charged at some point. Can't expect businesses to fund budgetary needs /shortfalls. 10/3/2011 Seattle Chocolates 56.87 FTE Dislikes RGRL unfair, paying for employees who don't receive City services. 10/4/2011 David Elle 4.74 FTE Likes Likes one calculation to complete fee process 10/4/2011 Ashley Furniture 35 Dislikes Not beneficial to them. 10/3/2011 American Medical Response 254 Dislikes Overly burdensome to a company who has been here over 10 years x i AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NOS. 2333 AND 2315, AS CODIFIED IN TUKWILA MUNICIPAL CODE (TMC) CHAPTER 5.04, "LICENSES GENERALLY," TO REVISE AND MOVE PARTS OF TMC CHAPTER 5.62 INTO CHAPTER 5.04 TO CREATE A SIMPLIFIED COMBINED BUSINESS LICENSE FEE STRUCTURE, AND TO EXEMPT QUALIFIED COURT INTERPRETERS FROM THE COMBINED BUSINESS LICENSE FEE; REPEALING ORDINANCE NO. 2297 AND ORDINANCE NO. 2333 §10, §11 AND §12, THEREBY ELIMINATING TMC CHAPTER 5.62; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council desires to simplify the business license fee structure to eliminate the need to calculate two different fees; and WHEREAS, the City Council supports a combined business license fee to facilitate the completion and processing of business license applications and renewals; and WHEREAS, the current business license ordinances separate the business license section and the Revenue Generating Regulatory License section into two different chapters and they should now be combined within TMC Chapter 5.04; and WHEREAS, the City Council desires to exempt qualified court interpreters from both the business! license fee and the Revenue Generating Regulatory License (RGRL) fee; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 5.04.020, "Application and Fees Required," Amended. Ordinance Nos. 2333 §3 and 2315 §1 (part), as codified at TMC Section 5.04.020, are hereby amended to read as follows: W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 1 of 9 41 A. Application Required. Any person desiring to establish or conduct any business enterprise or undertaking within the corporate limits of the City shall first apply to the Finance Department for a license to conduct such business. The application shall be upon a form furnished by the Finance Department on which the applicant shall state the company name and address; the nature of the business activity or activities in which he desires to engage; the place where the business will be conducted; the number of employees, whether full or part-time, on the payroll as of January 1, or, if a new business, the number to be employed on the opening date, the Washinaton State Unified Business Identifier (UBI) number; and other information pertaining to the business as required by the City. B. Fee General. The application must be accompanied by payment for the amount of the license fee. The total business license fee for the annual license issued under this chapter shall be determined using the combined rate of $67.00 per full -time equivalent (FTE) emplovee. This fee consists of a $12.00 per FTE base license fee plus a $55.00 per FTE Revenue Generatina Reaulatory License (RGRL) fee. All ll f, fe s Will vime based on the Rurn of employees, wh.etho��er full o o as follow 1l l� C. Minimum Fee. There shall be a minimum fee of $67.00 for an annual business license unless the business aualifies for a temporary business license in accordance with TMC Section 5.04.010 or is an entitv defined in TMC Section 5.04.090. 1. A business with less than $12,000.00 of average annual gross receipts shall b exempt from aRy RGR p a v the minimum license fee of $67.00. 2. For the purposes of this section and in determining the applicable RGRL combined business license fee, the term "employee" means and includes each of the following persons who are not required by the City to have his /her /its own separate City of Tukwila business license: a. Any person who is on the business's payroll, and includinq all full -time, part-time, and temporary employees or workers, and b. Self- employed persons, sole proprietors, owners, officers, managers, and partners; and c. Any other person who performs work, services or labor at the business, including an independent contractor who is not may be exempt frorn requirements to have a separate City of Tukwila business license. W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 2 of 9 42 3 do entity that is entirely n n_Trrn SCS iGense fee shall he exempt from aRy RGRL 3. An entity with engaging in some activities or functions that are exempt from the combined business license fee and some that are not exempt shall pay a RGRL combined business license fee based on the number of full -time eauivalent employees that are involved in the functions or activities that are not exempt. 4. An individual person operating more than one business as sole proprietorships within the corporate limits of the City, including leasing of non- owner- occupied housing, shall pay only one RGRL combined business license fee, at an amount equal to the highest RGRL combined business license fee for any one of the multiple businesses, if not otherwise exempt from paying the RGRL combined business license fee pursuant to this chapter. TMC Section i 6 2 C )2 0 A .5-5.04.020.C.4 shall not be appliGable apply if any one of the businesses owned by the sole proprietor has three or more full -time equivalent employees. 5. Residential rental property owners shall pay applicable fees as set by the Citv's fee schedule specified in TMC Section 5.06.040 in addition to the $55.00 RGRL fee per full -time eauivalent emplovee per TMC Section 5.04.020(B). D. Fee Calculation. 1 Revenue Generating Regulatory 1 iGense (RGRL) Combined Business License Fee Method. Except as otherwise provided by this chapter, every person engaging in business within the City shall pay a RGRL combined business license fee based upon the number of full -time eauivalent employee hours worked in Tukwila during the previous year. Annual employee hours are calculated based on the sum of the 4 quarterly reports submitted to the Washington State Department of Labor and Industries (L &I) for the previous year. It will be the responsibility of the employer to determine the number of hours worked within the City from these reports. Businesses that did not file quarterly reports with the Washington State Department of Labor and Industries shall determine the number of hours worked within the City and o ^ctirnfQ if required, shall demonstrate to the satisfaction of the Finance Director or his /her designee that the number of employee hours worked is correct. 2. The annual RGRL combined business license fee shall be calculated by multiplying the minims im fee -combined business license fee multiplier, as defined in subsection (H) of this section, by the number of full time equivalent employee hours that worked in Tukwila. The approved fee per full -time employee is $5:026646$0.034896 (which represents a RGRL combined business license multiplier of $0.028646$0.034896 per employee hour worked), as may be adjusted herein. Employers without a full year history weuld need to shall estimate the number of employee hours that will be worked in the GU rrent GaIeRdar yea 12 -month period. W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 3 of 9 43 3. If a business has more than one location in Tukwila, the annual combined business license fee calculation must include a minimum fee for each location and the RGRL applicable combined business license fee for annual employee hours at all locations. E. Alternative FTE Method. A business may choose to calculate its annual RGRL combined business license fee by multiplying the minimum fee by the number of its full time equivalent employees. The number of employees shall be based on the sum of the employees in the 4 quarterly reports submitted to the Washington State Department of Labor and Industries (L &I) for the previous year divided by four. It will be the responsibility of the employer to determine the number of employees working within the City from these reports. Businesses that did not file quarterly reports with the Washington State Department of Labor and Industries shall determine the number of employees working in the City and deronstrate if required, shall demonstrate to the satisfaction of the Finance Director or his /her designee that the number of employees is correct. Employers without a full year history would Ree shall estimate the number of employees who will work in the City for the GUFFent Galonda F dear in a 12 -month period. 1. For businesses with employees who work less than 1,920 hours per year (the work hour figure used by the Washington Department of Labor and Industries) the total number of hours worked by all such employees during the 4 quarters of the previous year shall be added together and divided by 1,920 to determine the FTE equivalency. 2. It will be the responsibility of the business to determine the total number of FTEs (or equivalency) and, den,aRstrate if required, demonstrate to the satisfaction of the Finance Director or his /her designee that the calculation is accurate. The RGRL combined business license fee for a business required to be licensed under this chapter and not located within the City's corporate limits shall be calculated by multiplying the RGRL combined business license fee multiplier of $0. 028646$0.034896 per employee hour worked by the number of employee hours worked within the City, but in no event shall the RGRL combined business license fee be less than the minimum fee set forth in this chapter. If the number of employee hours worked is not known at the time of renewal, the business shall estimate the maximum number of employee hours they anticipate working_in Tukwila duFiRg the yearfor a 12 -month period. f Businesses doing business in the City that have no employees physically working within the City shall pay the minimum fee required under this chapter. J The minimum fee under this chapter shall be $55- 00$67.00, and may be amended from time to time. W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 4 of 9 ii 41. Payment made by draft or check shall not be deemed a payment of the RGRL combined business license fee unless and until the same has been honored in the usual course of business, nor shall acceptance of any such check or draft operate as a quittance or discharge of the fee unless and until the check or draft is honored. Any person who submits a RGRL combined business license fee payment by check to the City pursuant to the provisions of this chapter shall be assessed an NSF fee set by the Finance Director if the check is returned unpaid by a bank or other financial institution for insufficient funds in the account or for any other reason. j. Businesses emplovinq fewer than 10 emplovees and that are eligible for a temporary business license, pursuant to TMC Section 5.04.010, shall be exempt from payment of a RGRL combined business license fe f ee b sir, with fewer than 10 empfeyees. Section 2. TMC Section 5.04.025, "Determination of number of employees for Combined Business License Fee," Created. Ordinance Nos. 2333 and 2315 §1 (part) are hereby amended to establish a new Section 5.04.025 to read as follows: 5.04.025 Determination of number of employees for RGRL combined business license fee. For the purposes of this section, "employee" shall be as defined in Section 5 .o o''020- 5.04.020.C.2. A. Standard Rule. In determining the amount of a RGRL combined business license fee to be paid for the upcoming license year, the number of employees shall be the current number of employees or the number of employees on the last regular working day of each of the last twelve months divided by twelve, whichever is higher. Each person who comes under the definition of "employee" shall be counted as one employee, even if the person works part-time. B. Alternative Method "FTE A business may choose to calculate the number of employees for the purpose of R-GR� combined business license fee according to the following alternative method based on the total number of full time equivalent employees hours worked foF emploved by the business for a 12 -month period: 1. The business must notify the City of its choice to use the FTE method. It will be the responsibility of the business to determine the number of hours FTEs emploved by wo rked fer the business, taking into account the information submitted to L &I in the last 4 quarterly reports. The business must demonstrate, to the satisfaction of the Finance Director, that the alternative calculation is accurate. The director may require the business to submit copies of its L &I reports. 2. Each employee who worked more than 1,920 hours during the previous year (including paid time off) shall be counted as one full -time equivalent employee. If a person such as an owner or partner devotes more than 1,920 hours per year to the business, that person must be counted as one full -time equivalent employee for RGRL the combined business license fee purposes. W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 5 of 9 45 3. Where there are employees who work less than 1,920 hours per year, the total number of hours worked by all such employees during the previous year shall be added together and divided by 1,920. A fFaGtieR Of ORe half or ever shall be FOUR up-. Hours worked by persons who are defined as employees f o r RGRL purposes must be included in the calculation even if the business is not required to report to L &I concerning such persons. 4. The results from subsection 13.2 of this section plus subsection 13.3 of this section shall be the total number of employees used to determine the amount of the RGRL combined business license fee. C. New Businesses. The FRIL combined business license fee for a business that did not submit reports for each of the last 4 quarters to L &I shall be based on the estimated number of employees of that business. The business shall provide its estimate of the average number of employees for a 12 -month period. The City will determine the number of employees that will be used in calculating the amount of the RGRL combined business license fee. If, during the license year, the City determines the actual number of employees is significantly different than estimated, the amount of the RGRL combined business license fee will be recalculated for the new business. If the revised RGRL combined business license fee is higher, the business must pay the difference within thirty days after notification is sent by the Citv. D. Over Reporting Number of Employees. A business may request that the City refund RGRL— business license fee overpaid on the basis that the business miscounted the number of employees by an error factor of more than 15 The request must be in writing and the City must receive the request and all supporting documentation no later than 60 days after the end of the licensee's fiscal year in which the error was made. If the City is satisfied the licensee paid an excess RGRL business license fee, the City will refund the excess RGRL business license fee paid by the licensee. E. Under Reporting of Employees. If the City determines the number of employees was under reported at the time of application or renewal by an error factor of more than 15 the business shall pay the balance of the applicable RGRIL combined business license fee together with a penalty of 20% of such balance due. The business shall also reimburse the City for any accounting, legal, or administrative expenses incurred by the City in determining the under reporting or in collecting the additional amounts. The Finance Director shall mail written notice of the amount to be paid and the business shall pay said amount to the City within 30 days of the date written notice is mailed by the Citv. If the City does not receive timely payment, an additional penalty shall be added, applying the schedule for late payments in this chapter. Section 3. TMC Section 5.04.040, "Prorating fee," Amended. Ordinance Nos. 2333 §4 and 2315 §1 (part), as codified at TMC Section 5.04.040, are hereby amended to read as follows: W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 6 of 9 M The license fee set forth in this chapter shall be for the calendar year, and each person engaged in business must pay the full combined business license fee for the current year. Business license fees are non refundable, regardless of whether the business operates for the entire calendar year, or whether the business license is denied, revoked or suspended with cause. Section 4. TMC Section 5.04.050, "Fee for late acquisition or renewal," Amended. Ordinance Nos. 2333 §5 and 2315 §1 (part), as codified at TMC Section 5.04.050, are hereby amended to read as follows: A. Monetary Penalty. Failure to pay the combined business license fee within 30 days after the day on which it is due and payable pursuant to TMC Section 5.04.020 shall render the business subject to a penalty of 5% of the amount of business license fee for the first month of the delinquency and an additional penalty of 5% for each succeeding month of delinquency, but not exceeding a total penalty of 25% of the amount of such business license fee, plus any accounting, legal or administrative expenses incurred by the City. No business license for the current period shall be granted until the delinquent fees, together with penalties, have been paid in full. The Finance Director or his /her designee is authorized, but not obligated, to waive all or any portion of the penalties and interest provided herein in the event the Director or his /her designee determines that the late payment was the result of excusable neglect or extreme hardship. B. Collection. Any business license fee due and unpaid under this chapter, and all penalties thereon, shall constitute a debt to the City and may be collected in court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to any and all other existing remedies. C. Revocation of License. The Finance Director may revoke any business license issued pursuant to this chapter to any business or other person who is in default in any payment of any business license fee hereunder, or who shall fail to comply with any of the provisions of this chapter. Notice of such revocation shall be mailed to the license holder by the Finance Director, and on and after the date thereof any such business who continues to engage in business shall be deemed to be operating without a license and shall be subject to any and all penalties herein provided. D. There shall be a penalty of not less than $50.00 to reinstate any business license revoked through nonpayment of the business license fee. Section 5. TMC Section 5.04.070, "Change in nature of business," Amended. Ordinance Nos. 2333 §6 and 2315 §1 (part), as codified at TMC Section 5.04.070, are hereby amended to read as follows: The license granted in pursuance hereof shall be used to conduct the business or type of business at the designated address for which such license is issued. Any change in the nature of the business, a change in the Unified Business Identifier issued by the Washington State Department of Licensing, a change in the physical location of the business, or a change in ownership of the business shall necessitate a renewed W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 7 of 9 47 application to the Finance Department. A change in the nature of business or a change in ownership will also require payment of the applicable combined business license fee. Section 6. TMC Section 5.04.090, "Exemption," Amended. Ordinance Nos. 2333 §7 and 2315 §1 (part), as codified at TMC Section 5.04.090, are hereby amended to read as follows: A. Exemptions. The following entities may claim an exemption from the combined business license fee, but if exempt under this subsection such entities shall still register under this chapter: 1. Certain Organizations Exempt from Federal Income Tax. An organization that files with the city a copy of its current IRS 501(c)(3) exemption certificate issued by the Internal Revenue Service. 2. A governmental entity that engages solely in the exercise of governmental functions. Activities that are not exclusively governmental, such as some of the activities of a hospital or medical clinic, are not exempt under this chapter. 3. A nonprofit business operated exclusively for a religious purpose, upon furnishing proof to the Finance Director of its nonprofit status. For the purposes of this chapter, the activities that are not part of the core religious functions are not exempt. 4. Civic groups, service clubs, and social organizations that are not engaged in any profession, trade, or occupation, but are organized to provide civic, service, or social activities in the City. a. Examples of such organizations include but are not limited to Soroptomists, Kiwanis, Lions' Rotary, American Legion, children's and adults' athletic leagues and similar types of groups, clubs or organizations. 5. Court interpreters who provide an oral translation between speakers who speak different lanquaqes, and who are either a certified interpreter, qualified interpreter, or reqistered interpreter, and who make less than $12.000 in gross annual revenue in Tukwila, Washinqton. Certified, qualified and reqistered interpreters are defined as follows: a. "Certified interpreter" means an interpreter who is certified by the administrative office of the courts. b. "Qualified interpreter" means a person who is readily able to interpret or translate spoken and written Enqlish for non Enqlish speaking persons and to interpret or translate oral or written statements of non Enqlish speaking persons into spoken Enqlish. c. "Registered interpreter" means an interpreter who is reqistered by the administrative office of the courts. W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 8 of 9 M A Nothing in this chapter shall be construed to require a license for any farmer, gardener, or other p erson to sell, deliver or peddle any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats or any farm produce or edibles raised, caught, produced or manufactured by such person in any place within the State. Section 7. Repealer. Ordinance Nos. 2297 and 2333 §10, §11 and §12, as codified in TMC Chapter 5.62, are hereby repealed, thereby eliminating TMC Chapter 5.62. Section 8. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 9. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 10. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 1 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 9 of 9 i x City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator DATE: October 12, 2011 SUBJECT: Revenue Generating Regulatory License (RGRL) Information on Non Profit businesses ISSUE The Finance Department is responding to information requested by members of the Finance and Safety Committee regarding the non profit exemption status in the City and the impact on revenues should that exemption be lifted. BACKGROUND At the September 20, 2011 Finance and Safety Committee meeting, Staff presented the revenue impacts if the City decided to remove the non profit exemption from businesses with certain employee count thresholds. This item was discussed at the September 26, 2011 Committee of the Whole meeting and it was requested that further information and analysis be brought back to the Committee for consideration on the following items: Revenues collected from non profit organizations with more than 100 employees Obtain substantiated data showing the impact of non profit organizations on City services with more than 100 employees Determine legal implications of removing the business license and Revenue Generating Regulatory (RGRL) fee exemption on non profit organizations with more than 100 employees DISCUSSION Revenue Collection The City is currently receiving water, sewer and surface water fees, and utility taxes from Group Health and Museum of Flight. Tukwila receives property taxes from Group Health; however, Museum of Flight is exempt per King County. A small amount of sales tax revenue is generated from a caf6 in Group Health and the gift shop and caf6 at the Museum of Flight. Year -to -date sales tax revenue from these two establishments total $34,000. Traffic impact fees are assessed with redevelopment and an increase in PM peak hour traffic. This year, the City has collected $30,000 of traffic impact fees from Group Health and $21,000 from Museum of Flight. Permitting fees received from these organizations total $44,119 so far in 2011. 51 INFORMATIONAL MEMO Page 2 Impact on Citv services Staff gathered information from other City departments to find substantiated data showing increase use of City services by non profit organizations in Tukwila. Discussion with Public Works, Police and Fire Staff indicate that public safety services and roadways were accessed by non profit businesses, but there is insufficient data to show extensive use for service calls and or traffic control counts. Legal Implications The City attorney has determined that there is not enough substantiated documentation at this time to support lifting the exemption of non profits with more than 100 employees from having to pay the business license and RGRL fee. Staff will continue with additional research surrounding the non profit issue as directed by the Committee. RECOMMENDATION This item is for information only. No recommendation on changes to the RGRL Ordinance is made at this time. Any proposed changes by committee members will be incorporated into a future agenda item for the Finance and Safety Committee. ATTACHMENT Non profit Revenue Summary WA2011 Info Memos- CoundI\NonProfitRGRL.doc 52 Revenue from Non Profits Property Tax Group Health Museum of Flight- Exempt Citv Utilities (Water, Sewer. Surface Water) Group Health Museum of Flight Utility Taxes Telecommunication -Cell, pager, telephone Puget Sound Energy /Electricity, Natural Gas Comcast Cable TV Seattle City Light Solid Waste /Recycling Companies Sales Tax Group Health Cafe Museum of Flight Cafe Gift Shop Traffic Impact Fees Group Health- Building Improvement Museum of Flight -Space Shuttle Gallery Permit Fees Group Health 12400 East Marginal Way South 12401 East Marginal Way South 12501 East Marginal Way South Museum of Flight Total Revenue 2011 YTD 2010 2009 129,379 142,864 145,877 2011 YTD 2010 2009 19,740 14,765 18,786 79,977 88,647 89,457 2011 YTD 2010 2009 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 2011 YTD 2010 2009 23,851 2,785 4,716 10,152 15,674 15,500 2011 YTD 2010 2009 30,000 21,000 2011 YTD 2010 2009 38,112 3,322 1,026 2,740 2,049 3,984 540 130 3,266 823 1,337 358,217 271,470 280,814 53 x City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance Safety Committee FROM: Peggy McCarthy, Acting Finance Director Finance Department DATE: October 5, 2011 SUBJECT: A resolution authorizing the cancellation of outstanding claims, payroll checks, etc. ISSUE Annual write -off of outstanding and unredeemed General Fund, 411 Foster Golf Fund, and 501 Equipment Rental Fund accounts payable claims and payroll checks, and Municipal Court checks. BACKGROUND Each year, the City of Tukwila holds abandoned or unclaimed property that is owed either to individuals or business vendors that must be reported by November 1st to the Washington State Department of Revenue Unclaimed Property Section. All local governments are required to report all unclaimed property except unclaimed restitution. Unclaimed restitution is submitted to the County Treasurer who is required to report and send the funds to the State Treasurer for the Crime Victims Fund each year. The dormancy or abandonment period of all accounts payable claims and payroll checks is one year; and Municipal Court checks have an abandonment period of two years. Current Finance Department policy dictates that all abandoned or unclaimed property be reported and remitted annually to the Washington State Department of Revenue Unclaimed Property Section through the Council approved resolution process. The advantages to the City for remitting the funds annually to the Department of Revenue are as follows: Property remitted by the City is indemnified The City is no longer responsible for the tracking of funds There is little -to -no research or contact with claimants by the City as this is now maintained through the Department of Revenue DISCUSSION The annual proposed resolution totaling $1,800.90 reflects amounts deemed as abandoned or unclaimed property. For the 2011 unclaimed property report year, remittance of abandoned General Fund Accounts Payable claims checks total $484.40; payroll checks total $561.22; Municipal Court checks total $312.00; 411 Fund payroll checks total $359.51; and 501 Fund claims checks total $83.77. 55 INFORMATIONAL MEMO Page 2 To the extent possible, those individual property owners with unclaimed accounts payable claims, payroll, and /or Municipal Court checks of $50.00 or more, have been notified by the City through the "good faith" effort of being served due diligence letters. These individual property owners have either not responded to the due diligence notifications and /or cannot be located in order to claim their property. RECOMMENDATION The attached proposed resolution and its attachments will authorize the annual cancellation of unclaimed General Fund, 411 Foster Golf, and 501 Equipment Rental accounts payable claims /payroll checks, and Municipal Court checks. By way of this informational memo being presented to members of the Finance Safety Committee this day, please forward as follows: Committee of the Whole Meeting scheduled for October 24, 2011 Regular Council Meeting scheduled for November 7, 2011 ATTACHMENTS Proposed Draft Resolution 2011 Attachment "A" to Resolution 2011 Unclaimed Property Summary Detail Report WA2011 Info Memos- CouncillUnclaimedPropertyRes .doc 56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE CANCELLATION OF OUTSTANDING GENERAL FUND CLAIMS AND PAYROLL CHECKS, MUNICIPAL COURT CHECKS, 411 FUND FOSTER GOLF PAYROLL CHECKS, AND 501 FUND EQUIPMENT RENTAL CLAIMS CHECKS. WHEREAS, the State of Washington, Department of Revenue Unclaimed Property Section, for the reporting and remittance year 2011, requires a one -year dormancy period for outstanding claims and payroll checks issued from the General Government, 411 Foster Golf and 501 Equipment Rental Funds, and a two -year dormancy period for municipal court checks; and WHEREAS, the City of Tukwila Finance Department has made all reasonable attempts to resolve the outstanding, unredeemed General Fund, 411 Fund and 501 Fund claims and payroll checks, and municipal court checks; and WHEREAS, the City Council of the City of Tukwila wishes to cancel all outstanding, unclaimed General Fund, 411 Fund, and 501 Fund claims and payroll checks issued prior to July 1, 2010, and municipal court checks issued prior to July 1, 2009; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: The Tukwila City Council authorizes the cancellation of General Fund, 411 Fund and 501 Fund claims and payroll checks, and municipal court checks, as detailed on Attachment A and the 2011 Unclaimed Property Summary Detail Report. W: \Word Processing \Resolutions \Cancellation of outstanding claims and checks 10 -5 -11 LJ:bjs Page 1 of 2 57 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2011. ATTEST /AUTH ENT I CATE D: Christy O'Flaherty, CMC, City Clerk Allan Ekberg, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Shelley M. Kerslake, City Attorney Attachment A: WA State Department of Revenue 2011 Unclaimed Property Reporting, including 2011 Unclaimed Property Summary Detail Report W: \Word Processing \Resolutions \Cancellation of outstanding claims and checks 10 -5 -11 LJ:bjs Page 2 of 2 411 Foster Golf Course Payroll 9521690 02/19/10 Donald McConnaughey Total 411 Fund Payroll Checks: 501- Equipment Rental Fund Claims #350113 11/16/09 Report and remittance summary Radio Communications Svcs -King County Total 501 Fund Claims Checks: GRAND TOTAL: Total Claims, Payroll, and all other Municipal Court Checks to WA State DOR Municipal Court Restitution, Check Nos. 13194, 13513, 13191, remittance to County Treasurer Grand Total to be Reported Remitted to WA State DOR/County Treasurer: AMOUNT $384.40 100.00 $484.40 $86.22 475.00 $561.22 $0.00 150.00 100.00 62.00 $312.00 $1,357.62 $359.51 $359.51 $83.77 $83.77 $1,800.90 $1,488.90 312.00 $1,800.90 1 59 Attachment "A" WA State Department of Revenue 2011 Unclaimed Property Reporting ID NUMBER DATE VENDOR 000 General Fund Claims Various Various Aggregate- Various (Claims Checks under $50) #354060 06/21/10 Mission Increase .Foundation Total General Fund Claims Checks Payroll #522143 05/20/10 Brian Allen 521096 12/04/09 Sound Credit Union Total General Fund Payroll Checks Municipal Various Various Aggregate- Various (Court Checks under $50) Court #13194 07/03/08 Jose Varva (Restitution County Treasurer) 13513 03/23/09 Benjamin Smith (Restitution County Treasurer) 13191 07/02/08 Ali Abokor (Restitution County Treasurer) Total Municipal Court Checks General Fund Grand Total All Checks: 411 Foster Golf Course Payroll 9521690 02/19/10 Donald McConnaughey Total 411 Fund Payroll Checks: 501- Equipment Rental Fund Claims #350113 11/16/09 Report and remittance summary Radio Communications Svcs -King County Total 501 Fund Claims Checks: GRAND TOTAL: Total Claims, Payroll, and all other Municipal Court Checks to WA State DOR Municipal Court Restitution, Check Nos. 13194, 13513, 13191, remittance to County Treasurer Grand Total to be Reported Remitted to WA State DOR/County Treasurer: AMOUNT $384.40 100.00 $484.40 $86.22 475.00 $561.22 $0.00 150.00 100.00 62.00 $312.00 $1,357.62 $359.51 $359.51 $83.77 $83.77 $1,800.90 $1,488.90 312.00 $1,800.90 1 59 2011 Unclaimed Property Summary Detail Report Treasurer's Checks: No outstanding treasurer's checks to report for 2010 Unclaimed Property filing year. Total Treasurer's Checks: Claims Checks - General 000 Fund: Check No. Date #347638 07/06/09 347842 07/20/09 347897 07/20/09 348408 08/17/09 349022 09/21/09 349279 10/05/09 350080 11/16/09 350136 11/16/09 352192 03/15/10 352196 03/15/10 352227 03/15/10 352498 04/05/10 352499 04/05/10 352589 04/05/10 352590 04/05/10 352598 04/05/10 352625 04/05/10 352661 04/05/10 352774 04/19/10 353368 05/17/10 353388 05/17/10 353565 05/24/10 353620 05/24/10 353632 05/24/10 353636 05/24/10 353915 06/07/10 353994 06/21/10 354030 06/21/10 354060 06/21/10 354177 06/21/10 Property Owner: Wendy I. Jans Neal Dolan Stephanie Kim Muna Faroug David Copeland Sauncy Hurst Jeneen A. Gittings Ahmed J. Mohamed Greis Morales De Los Reyes Rubalcava E. Murillo Than Puai Elizabeth Contreras Rudy Contreras Marco Meza Nazareth Meza Phuc H. Nguyen Robert Pillion Brittany Smith C- Profit Capital Corp. (Sharp Shop, Inc.) Nyakat R. Lauk Orlanda Nava -Roman Ralph Kemp Martin L. Shearer Giovanna Sua Sefo Taylor Phyllis Wong Donte Franklin Juanita Jimenez Mission Increase Foundation Victeria M. Waters Total General Fund Claims Checks: Claims Checks - Equipment Rental 501 Fund: Check No. Date #350113 11/16/09 Property Owner: Radio Communications Svcs -King County Total Equipment Rental 501 Fund Claims Check: Total All Claims Checks: Description: Prof Svcs -TCC Yoga Instructions Witness Fee Witness Fee TCP Swim Lesson Refund Witness Fee TCC Teen Program Refund Witness Fee Witness Fee Witness Fee Witness Fee Witness Fee Witness Fee Witness Fee Witness Fee Witness Fee Witness Fee Witness Fee Witness Fee Invoice #307208, dtd 03/02/10 Witness Fee Witness Fee Juror Fee Juror Fee Juror Fee Juror Fee TCC Senior Trip Refund Witness Fee Witness Fee TCC Damage Deposit Refund Witness Fee Description: Invoice #00420244, dtd 09/08/09 $0.00 I All Code: CK04 0.00 $0.00 $ 29.25 10.00 10.00 40.00 10.00 20.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 30.12 10.00 10.00 15.90 17.86 11.56 11.71 8.00 10.00 10.00 100.00 10.00 $ 484.40 $ 83.77 $ 83.77 $ 568.17 General Fund All Code: CK06 501 Fund All Code: CK06 lej 10/05/2011 12:12 PM Payroll Checks - General 000 Fund: Property Owner: Description: Check No. Date #522143 05/20/10 Brian Allen 05/15/2010 Payroll 521096 12/04/09 Sound Credit Union 11/30/2009 Payroll Total General Fund Payroll Checks: Payroll Checks - Foster Golf 411 Fund: Property Owner: Description: Check No. Date #521690 02/19/10 Donald McConnaughey 02/15/2010 Payroll Total Foster Golf 411 Fund Payroll Checks: Municipal Court Checks: Check No. Date #13194 07/03/08 13513 03/23/09 13191 07/02/08 Total All Payroll Checks: Property Owner: Description: Jose Varva Restitution Benjamin Smith Restitution Ali Abokor Restitution Total Municipal Court Checks: 2011 Report Year Summary: Total Claims, Payroll, and all other Municipal Court Checks to WA State DOR: Municipal Court Restitution, Check Nos. 13194, 13513, & 13191 remittance to County Treasurer Grand Total to be Reported and Remitted to WA State DOR/County Treasurer: 2011 Unclaimed Property Summary Report Page 2 $ 86.22 475.00 $ 561.22 $ 359.51 $ 359.51 $ 920.73 All Code: CK06 General Fund 411 Fund All Code: CK06 $ 150.00 (To County Treasurer) 100.00 (To County Treasurer) 62.00 (To County Treasurer) All General Fund All Code: MS16 $ 312.00 $ 1,488.90 312.00 $ 1,800.90 lei 10/05/2011 12 :12 PM Checks Detail - All 2011 Unclaimed Property Summary Report Page 3 ID Number Date Vendor Amount General Fund: Various Aggregates- Various (under$50) $ 384.40 Claims #354060 06/21/10 Mission Increase Foundation TCC Damage Deposit Refund 100.00 Total Claims $ 484.40 Payroll #522143 05/20/10 Brian Allen 05/15/2010 Payroll $ 86.22 521096 12/04/09 Sound Credit Union 11/30/2009 Payroll 475.00 Total Payroll $ 561.22 Municipal Various Aggregates- Various (under $50) $ - Court 13194 07/03/08 Jose Varva Restitution (To County Treasurer) 150.00 13513 03/23/09 Benjamin Smith Restitution (To County Treasurer) 100.00 13191 07/02/08 Ali Abokor Restitution (To County Treasurer) 62.00 Total Municipal Court $ 312.00 Total General Fund - All $ 1,357.62 411 Foster Golf Fund: Various Aggregates- Various (under$50) $ - #521690 02/19/10 Donald McConnaughey 02/15/2010 Payroll 359.51 Total 411 Foster Golf Fund $ 359.51 501 Equipment Rental Fund: Various #350113 11/16/09 Aggregates- Various (under $50) $ Radio Communications Svcs -King County Invoice #00420244, dtd 09/08/09 83.77 Total 501 Equipment Rental Fund $ 83.77 lej 10/05/2011 12 :12 PM City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Stephanie Brown, Human Resources Director DATE: October 18, 2011 SUBJECT: 2012 Non Represented Wages ISSUE 2012 Non Represented Wage Schedule analysis based on external comparables and internal equity. BACKGROUND In alignment with Resolution No. 1537, establishing a Non Represented MR) Emplovees' Comaensation Plan, a wage study has been conducted for calendar year 2012. The resolution requires that a market analysis be done every other year for the upcoming year for Non Represented positions. The current analysis has been conducted based on information in the Association of Washington Cities (AWC) 2011 Salary and Benefit Study. As in the past, a comparison was done of external comparables (cities) and internal equity (union pay scales). The following comparable cities were used for this study: Comnarables Auburn Bothell Puyallup Kent Kirkland Sea -Tac Lynnwood Mountlake Terrace Redmond Renton DISCUSSION In 2009, a non represented market study reflected that relative to the market, the non represented employees were falling behind. Fairly soon after the study, the economy took a major hit and with it a shift in how wages and benefits were considered by the cities going into 2010. Upon presenting the wage study to the City Council, a decision was made that in 2010 non represented positions banded at levels A11 -D61 would receive an average wage increase of 4.14% based on the 2009 market study, and positions banded D62 -F102 would receive no market increase, and their wages have been frozen at the 2009 salary level since that time. 63 INFORMATIONAL MEMO Page 2 The strategy to address the City budget shortfall in 2010 was to request our represented and non represented employees take reductions in wages and /or benefits for 2011. As a result, our Fire Union and Non Represented employees did not receive COLA increases this year, and the remaining represented employees (Teamsters' and USW Non Commissioned) received their negotiated cost of living adjustments. The Police Guild contract expired in December 2010. Attached to this memorandum is a table that shows the wage and cost of living adjustments (COLA) for all groups since 2009. Internal equity continues to create a wage gap as the represented groups receive negotiated cost of living adjustments. In looking at the internal equity issue, the non represented top step wage information is compared to the represented top step for 2011, which shows the represented wages have increased 3% to 6 This is also becoming apparent in upper level management positions where first level supervisors are earning a higher wage then Assistant or Department Directors whose wages are at 2009 salary levels. In light of the above, it is important to keep the non represented wages consistently moving in alignment with the market and with represented wages. In addition, we must remain competitive in salary and benefits to retain existing staff and attract applicants to positions at the City. There has been some improvement in the wages of our competing jurisdictions as the market study has shown. We also are seeing a resurgence of competition for upper level management positions. If we do not bring our salaries in alignment with the market, we will be faced with the possibility of losing key upper level management positions, which will have an effect on our succession plans into the future. The Decision Band Methodology (DBM) and regression line analysis have been completed for the non represented market study using the data from the 2011 AWC salary study in determining the "best line of match The analysis shows that positions banded at D62-Fl 02 are below market, and positions banded at Al 1 -D61 are at market. RECOMMENDATIONS The following Non Represented employee wage increase for 2012 is presented to the Mayor and Council for consideration: Approve the 2012 Non Represented salary schedule, effective January 1, 2012 providing a market wage adjustment as determined by regression analysis (see attached draft resolution), for positions banded D62 -F102, which provides for external comparability and internal equity; and provide a three percent (3 increase to those at the A, B, C, and D61 levels (generally technical and staff support levels), in order to maintain internal equity for these positions, which have more internal similarity with the represented positions. 2 INFORMATIONAL MEMO Page 3 The estimated cost to implement this increase for wages is $162,390. The market adiustment, and internal three percent (3 equity increase to the overall non represented salary schedule is $4,071,042,which is below the 2012 budaet of $4,161,988. The Benefit change for 2012 for non represented employees is to reduce the amount the City funds for medical contributions from 10% down to 8 (See attached benefit summary sheet) This change is reflective of the City Council's interest in aligning with our comparable jurisdictions in employee cost sharing for their medical insurance. The City Council is being asked to consider this change along with the adjustments to the wages for non represented employees. MAYOR'S RECOMMENDATION: The Mayor has reviewed the wage scenario above. He recognizes the current budget concerns however, he realizes the need to keep in alignment with the external market, decrease the internal equity compression, and remain competitive for salaries with our comparable jurisdictions for upper management level positions. Therefore, he recommends the City Council approve the 2012 Non Represented salary and benefits effective January 1, 2012, which provides for a market adjustment as determined by the regression analysis for positions banded D62 -F102, and provide a three (3 increase to those at A, B, C, and D61 levels in order to maintain internal equity for these positions, which have internal similarity with the represented positions. The Council is being asked to consider this issue at the October 24, 2011 Committee of the Whole meeting, and November 7, 2011, Regular meeting. ATTACHMENTS -Draft Resolution Attachment A: 2012 Wage Schedule Attachment B: 2012 Benefits Attachment C: 2012 Longevity Pay -Wage Adjustment table for represented and non represented employees. W, x A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, UPDATING AND CLARIFYING THE NON REPRESENTED EMPLOYEES' COMPENSATION AND ADOPTING THE NON REPRESENTED SALARY SCHEDULE AND BENEFITS SUMMARY, EFFECTIVE JANUARY 1, 2012. WHEREAS, the Tukwila City Council has conducted a review of the non represented employees' compensation system that was originally implemented in January 1998; and WHEREAS, the City Council recognizes that current economic conditions and forecasts are a consideration in actions that deal with the compensation of employees; and WHEREAS, the City Council has made a determination to review the non represented compensation for even numbered years and provide cost -of- living allowances (COLAs) in odd numbered years; and WHEREAS, a compensation study has been conducted and the recommended non represented wage schedule and benefit information has been prepared for implementation on January 1, 2012; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The following statements have been used for the purpose of adopting the non represented employees' wages for 2012 and consideration for future years. A. The following basic plan elements remain the same: 1. Decision Band Methodology (DBM) for creating classifications. 2. Market analysis using comparable jurisdictions' top -step wages. 3. Data was gathered through use of the "Association of Washington Cities (AWC) Salary and Benefits Survey a publication that garners wide participation of our comparables. W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 10 -11 -11 SB:bjs Page 1 of 3 67 4. Regression line analysis to establish the Control Point for each DBM rating. (Regression Line Analysis provided by Fox Lawson Associates, LLC, based on Human Resources Department acquired market data). 5. Steps below the Control Point (Wage Schedule Top Step) are automatic as individuals move through the system. 6. Ranges for all bands (A11 -F102) of the Decision Band Methodology have been established based on the outcome of the regression analysis (line of best fit) in creating the 2012 wage schedule. 7. Ranges A11 -D61 wages for 2012 will receive a 3% wage adjustment on January 1, 2012 for positions in these Decision Bands. 8. Ranges D62 -F102 wages for 2012 are based on the outcome of the trend line analysis. Wage increases for these Decision Bands shall be as shown on the attached Salary Schedule, "Attachment A." 9. A "market adjustment" is normally applied to a position when the wage survey results establish a new control point, and internal compression exists within the career ladder, or where there is difficulty in recruiting and /or retaining qualified employees. In order to assure that the integrity of the Decision Band Method is maintained, while recognizing a wage gap based on market conditions for a specific position, the "market adjustments" may be made in future years. When implemented, the "market adjustment" shall be calculated by taking the difference between the newly established control point and the market average wage for the position, and applying it on top of the established salary range for the position. This market adjustment shall be reviewed every two years from the time it is implemented (if implemented) as part of the salary study and may be eliminated or changed based on the results of the survey. B. The non represented salary schedule for 2012 provides an average market trend increase as a whole, at the top step (control point). Individual DBM increases may vary on the wage schedule based on where they fit in the overall regression analysis that develops the market trend line. This analysis brings the wage schedule in alignment with external comparables. C. The City shall continue to conduct in -house market analysis of the non represented compensation system during odd numbered years, using outside assistance on regression line analysis calculations as needed. The results of the analysis will be considered for implementation on January 1 of the following even numbered year. D. A COLA increase shall be considered for application each January 1 during odd numbered years, based on the Seattle- Tacoma Bremerton Consumer Price Index (CPI -W) Average (first half of 2011 to first half of 2012). E. The Decision Band method of job evaluation will be used to establish classifications and the relative internal value and relationship of non represented jobs within the City of Tukwila. W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 10 -11 -11 sB:bjs Page 2 of 3 F. Merit will continue to be eliminated from the plan at this time and may be reconsidered as a plan element in subsequent years. G. Step increases from the minimum to the control point for all positions shall be given annually on the employee's performance review date. There will be no step increases for employees at or above the control point. Section 2. Non represented salary schedule, employee benefits summary and longevity pay plan. A. The Non Represented Salary Schedule, "Attachment A" hereto, shall be approved, effective January 1, 2012. B. The Non Represented Employee Benefits Summary, "Attachment B" hereto, shall be approved, effective January 1, 2012. C. The Longevity Pay Plan for Non Represented Employees, "Attachment C" hereto, shall be approved, effective January 1, 2012. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 1 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk Allan Ekberg, Council President APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Attachments: Filed with the City Clerk: Passed by the City Council: Resolution Number: Attachment A, Non Represented Salary Schedule 2012 Attachment B, Non Represented Employee Benefits Summary 2012 Attachment C, Longevity Pay Plan for Non Represented Employees 2012 W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 10 -11 -11 sB:bjs Page 3 of 3 x ATTACHMENT A City of Tukwila Non Represented Salary Schedule 2012 Classification Title Job Title Range Administrative Support Technician Administrative Support Technician Al2 Office Technician Human Resources Technician I B21 Office Specialist Administrative Secretary B22 Civil Service Secretary/ Examiner Administrative Assistant Deputy City Clerk B23 Executive Secretary Administrative Secretary I Council Administrative Assistant Program Coordinator Systems Administrator C41 Human Resources Assistant Management Coordinator City Clerk C42 Court Administrator Police Records Manager Management Analyst Legislative Analyst Human Resources Analyst Public Works Analyst Program Administrator Internal Operations Manager C43 Public Works Coordinator Emergency Manager Program Manager Assistant City Administrator D61 Senior Engineer Building Official IT Manager Administrative Manager Maintenance Operations Manager D62 W: \Word Processing \Resolutions \N on- Rep resented Employees Compensation -2012 Attachments SB:bjs 71 ATTACHMENT A (continued) Non Represented Salary Schedule 2012 (continued) Assistant Director Deputy Community Development Director D63 Deputy Finance Director Deputy Public Works Director Deputy Parks Recreation Director Department Manager Assistant Fire Chief D72 Assistant Police Chief City Engineer Department Administrator Economic Development Administrator E81 Department Head Human Resources Director E83 DCD Director Finance Director IT Director Parks Recreation Director Department Director Fire Chief E91 Police Chief Public Works Director City Administrator City Administrator F102 W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 Attachments SB:bjs 72 ATTACHMENT A (continued) 2012 Non Represented Salary Structure (Monthly) DBM (Minimum) Rating Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 All 1 3,6411 3,7551 3,8701 3,9831 4,0961 1 Al2 1 3,9291 4,0551 4,1801 4,3021 4,4251 1 A13 1 4,2281 4,3581 4,4911 4,6231 4,7531 B21 1 4,4161 4,5811 4,7491 4,9131 5,0831 B22 1 4,7031 4,8791 5,0561 5,2331 5,4121 B23 4,9871 5,1751 5,3621 5,5501 5,7401 B31 5,2341 5,4641 5,6931 5,9211 6,1511 B32 5,6521 5,9001 6,1481 6,3961 6,6451 C41 1 5,8791 6,1131 6,3481 6,5851 6,8211 7,0561 C42 6,1491 6,3971 6,6421 6,8891 7,1361 7,3841 C43 6,4231 6,6811 6,9391 7,1961 7,4521 7,7131 C51 6,6321 6,9291 7,2281 7,5261 7,8231 8,1251 C52 1 7,0881 7,4081 7,7271 8,0461 8,3671 8,6181 D61 1 7,2231 7,5851 7,9461 8,3091 8,6711 9,0291 D62 1 7,2781 7,6401 8,0041 8,3671 8,7321 9,0941 D63 1 7,5331 7,9101 8,2871 8,6641 9,0411 9,4151 D71 1 7,7061 8,1271 8,5501 8,9731 9,3941 9,8191 D72 8,0871 8,5281 8,9711 9,4121 9,8551 10,2971 E81 8,1721 8,5811 8,9901 9,3961 9,8351 10,2761 10,697 E82 8,4721 8,8981 9,3221 9,7461 10,1721 10,5981 11,021 E83 8,7211 9,1591 9,5941 10,0321 10,4661 10,903 11,341 E91 9,0251 9,4771 9,9291 10,3811 10,8331 11,285 11,737 E92 9,3891 9,8611 10,3321 10,8011 11,2721 11,7431 12,212 F101 1 9,7661 10,2541 10,7431 11,2331 11,7231 12,2091 12,699 F102 1 10,1331 10,6401 11,1481 11,6561 12,1631 12,6701 13,178 2012 rate adjustments include 3% forA11 -D61, 5% for D62-E91,4.9% for E92 -F101 and 6.9% for F102. 2012 salary increases 2012 nonrep Salaries Partial 10/12/2011 73 x ATTACHMENT B Non Represented Employee Benefits Summary 2012 Social Security (FICA): Social Security benefits shall be provided as contained in Section 2.52.010 of the Tukwila Municipal Code (TMC). State -Wide Emplovee Retirement Svstem (PERS): Retirement shall be provided as contained in Section 2.52.020 of the TMC. Holidays: Holidays shall be provided as contained in Section 2.52.030 of the TMC. Regular part -time employees shall be entitled to benefits on a pro -rata basis. Sick Leave: Sick leave shall be provided as contained in Section 2.52.040 of the TMC. Regular part -time employees shall be entitled to benefits on a pro -rata basis. Medical Insurance: The City shall pay 100% of the 2012 premium for regular full -time employees and their dependents under the City of Tukwila self insured medical/ dental plan. Premium increases above 8% per year shall result in a modified plan document to cover the additional cost above 8 or a premium shall be implemented for the difference, at the City's discretion. The City reserves the right to select all medical plans and providers. Regular part time employees shall be entitled to benefits on a pro -rata basis. Employees who choose coverage under the Group Health Cooperative plan shall pay the difference between the City of Tukwila plan full family rate and the rate charged to them by Group Health. Dental Insurance: The City shall provide 100% of the 2012 premium for regular full -time employees and all dependents under the City of Tukwila self insured medical /dental plan for dental coverage. Regular part -time employees shall be entitled to the same benefits on a pro rata basis. Life Insurance: For regular full -time employees, the City shall pay the premium for Plan C (Multiple of annual earnings) or similar group life and accidental death and dismemberment insurance policy. Said plan shall be at 100% of annual earnings rounded up to the next $1,000. Regular part -time employees that work at least 20 hours per week shall be entitled to benefits on a pro -rata basis (per insurance program requirements). Vision/Optical: To non represented regular full -time employees and their dependents at the rate of $200 per person, to a maximum of $400 per family unit each year. Regular part -time employees and their dependents shall be entitled to benefits on a pro -rata basis. Disabilitv Insurance: The City shall provide 100% of the premium for regular full -time employees for a comprehensive long -term disability policy. Regular part -time employees that work at least 20 hours per week shall be entitled to benefits on a pro -rata basis (per insurance program requirements). Health Reimbursement Arranaement/Voluntary Emplovee Benefit Association (HRA/ VEBA): VEBA benefits shall be provided as contained in Resolution No. 1445 and as amended. (continued...) W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 Attachments SB:bjs 75 ATTACHMENT B (continued) Non Represented Employee Benefits Summary 2012 Vacation: Following the sixth month of continuous employment, annual vacation leave of six full days (each day is calculated at eight hours, regardless of schedule worked) shall be granted. Thereafter, an additional day of annual leave shall accrue each month, up to a total of 12 days. Three additional days of annual leave shall be granted on the employee's anniversary date after the third, fourth and fifth years. After six years, the employee shall be granted one day per year additional annual leave to a maximum of 24 days per year. The maximum number of accrued hours is 384 or 48 days. Years of Service Vacation Accrual Years of Service Vacation Accrual 0 -1 years 12 days* 10 years 19 days 1 -2 years 12 days 11 years 20 days 3 -6 years 15 days 12 years 21 days 7 years 16 days 13 years 22 days 8 years 17 days 14 years 23 days 9 years 18 days 15 years 24 days (maximum) *Six full days will be granted following the sixth month of continuous employment. (Days accrue at eight hours, regardless of schedule worked.) Regular part -time employees shall be entitled to benefits on a pro -rata basis. Uniform Allowance: An annual uniform allowance of $350 shall be granted to the following employees: Fire Chief, Assistant Fire Chief, Police Chief, Assistant Police Chief, and Records Manager. ATTACHMENT C Longevity Pay Plan for Non Represented Employees 2012 The monthly longevity flat rates shall be as follows for regular full -time employees after the completion of the number of years of full time employment with the City set forth below. Regular part -time employees shall receive longevity on a pro -rata basis. Completion of 5 years 1 $75 Completion of 10 years 100 Completion of 15 years 125 Completion of 20 years 150 Completion of 25 years 175 Completion of 30 years I 200 W: \Word Processing \Resolutions \Non Represented Employees Compensation -2012 Attachments SB:bjs IL�J City of Tukwila COLA Adjustments 2009-2012 Represented and Non-Represented Positions Non-Represented: Bands A11-D61 Bands D62-F102 Teamsters Police Non-Commissioned (USW) Police Commanders (USW) Police Commissioned (Guild) Fire 2009 2010 2011 2012 Non-Represented Wages 2009 wages represent a COLA adjustment based on 2008 CPI formula. 2009 market study is for 2010 wage adjustment. 2011 wages represent a COLA adjustment based on 2010 CPI formula. 2011 market study is for 2012 wage adjustment. 4.50% Market Average 4.14% Wages Frozen 4.50% Wages Frozen Wages Frozen 4.25% 1375% 3.375% 90% CPI-W Min 2.5% Max 4.5% 4.25% 3.25% 3.25% 90% CPI-W Min 3% Max 4.5% Same as Non-Rep Same as Non-Rep Bands D62-F102 Market Adjustment 90% CPI-W Min 2.5% Max 3.5% 3.50% 3.50% Currently in contract negotiations 4.20% 4.00% Wages frozen as a wage concession Currently in contract negotiations Non-Represented Wages 2009 wages represent a COLA adjustment based on 2008 CPI formula. 2009 market study is for 2010 wage adjustment. 2011 wages represent a COLA adjustment based on 2010 CPI formula. 2011 market study is for 2012 wage adjustment. x City of Tukwila f FROM: DATE: SUBJECT ISSUE Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee Peggy McCarthy, Interim Finance Director October 10, 2011 Council Compensation Establish Council compensation for the period January 1, 2012 through December 31, 2015. BACKGROUND City Ordinance 2192, setting Councilmember compensation, will expire on December 31, 2011. A new ordinance is required to provide city staff the ability to process Councilmember pay subsequent to this sunset date. Tukwila Municipal Code (TMC) 2.05.010 (B) states "At any time the Tukwila compensation falls below the mean of the other Valley Communication cities, Tukwila will review the stipends and may increase its stipend to the level of those other cities." Also, the Washington State Constitution prohibits elected officials who set their own compensation (versus a Salary Commission) from receiving increases (or decreases) in compensation during their terms of office. DISCUSSION The annual stipend of the Council is currently $12,600, or $1050 per month, and has been at this level since 2005. The mean annual stipend of the other Valley Communication cities for 2011 is $12,663, as follows: Valley Communication City City of Auburn City of Federal Way City of Kent City of Renton Total Number of other cities Mean Annual Stipend RECOMMENDATION Annual Stipend $11,700 13,800 13,752 11.400 $50,652 4 $12.663 Information Source Website budget document Email from Finance Director Website budget document Website budget document The Council is being asked to consider this item at the October 24, 2011 Committee of the Whole meeting and subsequent November 7, 2011 Regular Meeting. ATTACHMENTS A. Draft Ordinance B. TMC Chapter 2.05 Council Compensation W \2011 Info Memos Council \Council Compensation 2.docx 79 x AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING TUKWILA MUNICIPAL CODE CHAPTER 2.05 TO FIX THE AMOUNT OF COMPENSATION AT THE CURRENT LEVEL (2011) FOR COUNCILMEMBERS THROUGH 2015; REPEALING ORDINANCE NO. 2192; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, Ordinance No. 2192 set Council compensation levels for the years 2007 through 2011; and WHEREAS, the City Council recognizes that the current economy warrants a conservative compensation that does not rise beyond the current scale; and WHEREAS, a uniform stipend ensures that all Councilmembers receive the same salary for several years; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Chapter 2.05 of the Tukwila Municipal Code is hereby amended to read as follows: 2.05.010 Council Compensation A. Monthly compensation levels. Pursuant to the provisions of RCW 35A.12.070, members of the Tukwila City Council shall receive the following monthly compensation during the years listed here according to their position and the date their term of office commences: W: Word Processing \Ordinances \Compensation for Councilmembers 10 -7 -11 PM:bjs Page 1 of 2 i POSITIONS 2, 4, 6 1/1/08 12/31/11 (current term of office) and 1/1 /12 —12/31 /15 *$1, 050 /month $1,050 /month $1,050 /month $1,050 /month *New Council term commences on January 1. B. Compensation review. At any time the Tukwila Council compensation falls below the mean of the other Valley Communication cities, Tukwila will review the stipends and may increase its stipend to the level of those other cities. Section 2. Repealer. Ordinance No. 2192 is hereby repealed. 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 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 1 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \Compensation for Councilmembers 10 -7 -11 PM:bjs Page 2 of 2 i POSITIONS 1, 3, 5, 7 111/10 —12/31/13 YEAR (current term of office) and 1/1/14 12/31/17 2012 $1,050 /month 2013 $1,050 /month 2014 *$1,050 /month 2015 $1,050 /month POSITIONS 2, 4, 6 1/1/08 12/31/11 (current term of office) and 1/1 /12 —12/31 /15 *$1, 050 /month $1,050 /month $1,050 /month $1,050 /month *New Council term commences on January 1. B. Compensation review. At any time the Tukwila Council compensation falls below the mean of the other Valley Communication cities, Tukwila will review the stipends and may increase its stipend to the level of those other cities. Section 2. Repealer. Ordinance No. 2192 is hereby repealed. 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 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 1 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \Compensation for Councilmembers 10 -7 -11 PM:bjs Page 2 of 2 i TUKWILA MUNICIPAL CODE 4. Community Affairs and Parks Committee, which shall consider matters related to the planning of the physical, economic, aesthetic, cultural and social development of the City; and Comprehensive Plan, Zoning Code, Building Code, code enforcement, Sign Code and annexation policies, in coordination with the Department of Community Development, Human Services, Planning Commission, Hearing Examiner, Sister Cities Committee, Human Services Advisory Board, and the Equity and Diversity Commission. They shall consider mat- ters relating to parks and park plans, recreation facilities and community activities, in coordination with the Parks and Recreation Department, the Arts Commission, and Park Com- mission. B. The Council President may establish such ad hoc committees as may be appropriate to consider special matters that do not readily fit the standing committee structure or that require special approach or emphasis. The Council President shall appoint Council representatives to intergovernmental councils, boards and committees as needed. C. Council committees shall consider all matters re- ferred. Each committee chair shall report to the Council the findings of the committee. Committees may refer items to the Council with no committee recommendation. D. Each committee chair may review and approve his /her committee agenda and will approve committee minutes before distribution. The committee chair can authorize the can- cellation of a committee meeting. An affirmative vote of three members of Finance and Safety Committee is required when the committee approves unbudgeted items. (Ord, 2424 §lfpart), 2043) 2.04.190 Filling Council Vacancies If a vacancy occurs in the office of Councilmember, the Council will follow the procedures outlined in RCW 35A.12.050. In order to fill the vacancy with the most qualified person available until an election is held, the Council will wide- ly distribute and publish a notice of the vacancy, the procedure and any application form for applying. The Council will draw up an application form, which contains relevant information to answer set questions posed by the Council. The application forms will be used in conjunction with an interview of each candidate to aid the Council selection of the new Council member. (Ord. 2024 §!(part), 2403) Page 2 -6 Sections: 2.05.010 Compensation 2.05.010 Council Compensation A. Monthly compensation levels Pursuant to the provi- sions of RCW 35A.12.070, members of the Tukwila City Coun- cil shall receive the following monthly compensation during the years listed here according to their position and date their term of office commences: POSITIONS 1, 3, 5, 7 POSITIONS 2, 4, 6 1/l/06-12/31/09 1 /l /04 -12/31 /07 YEAR (current term of office) and (current term of office) and 1/l/10-12/31/13 1/l/08-12/31/11 2008 $1,050 /month $1,050 /month 2009 $1,050 /month $1,050 /month 2010 $1,050 /month $1,050 /month 2011 $1,050 /month $1,050 /month New Council term commences on January 1. B. Compensation review At any time the Tukwila Council compensation falls below the mean of the other Valley Communication cities, Tukwila will review the stipends and may increase its stipend to the level of those other cities. (Ord. 2192 §1, 2007) Produced by the City of Tukwila, City Clerk's Office x