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HomeMy WebLinkAboutCOW 2022-11-28 COMPLETE AGENDA PACKETTukwila City Council Agenda ❖COMMITTEE OF THE WHOLE ❖ optiILA �q sem; sl, `''�r 1905%%% Allan Ekberg, Mayor Councilmembers: + Kathy Hougardy + De'Sean Quinn David Cline, City Administrator + Kate Kruller + Cynthia Delostrinos Johnson Thomas McLeod, Council President ❖Mohamed Abdi ❖ Tosh Sharp THE MEETING WILL ON-SITE THE Monday, November BE CONDUCTED PRESENCE WILL PHONE NUMBER For Technical 28, 2022; BOTH ON-SITE AT TUKWILA CITY HALL AND ALSO VIRTUALLY. BE IN THE COUNCIL CHAMBERS (6200 SOUTHCENTER BOULEVARD). FOR THE PUBLIC TO PARTICIPATE IN THE MEETING IS: 1-253-292-9750, ACCESS CODE: 670077847#. Click here to: Join Microsoft Teams Meeting Support during the meeting call; 1-206-433-7155. 7:00 PM 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE 2. LAND ACKNOWLEDGEMENT The City of Tukwila is located on the ancestral lands of the Coast Satish people. We acknowledge their continuing connections to land, waters and culture. We pay our respects to their elders past, present and emerging. 3. PUBLIC COMMENTS— including comment on items both on and not on the meeting agenda Those wishing to provide public comments may verbally address the City Council both on-site at Tukwila City Hall or via phone or Microsoft Teams for up to 5 minutes for items both on and not on the meeting agenda. To provide comment via phone or Microsoft Teams, please email citycouncil@tukwilawa.gov with your name and topic by 5:00 PM on the meeting the date. Please clearly indicate that your message is for public comment during meeting, and you will receive further instructions. 4. SPECIAL ISSUES a. Legislative agenda: (1) A legislative update from David Foster, City lobbyist. (2) A resolution adopting a legislative agenda for use during the 2023 Washington State Legislative Session. b. PSRFA (Puget Sound Regional Fire Authority): (1) Transition of Fire services: Next steps and legislation. (2) A resolution to seek annexation into the PSRFA. c. Impact fees update: (1) An ordinance updating Fire impact fees. (2) An ordinance updating Parks impact fees. d. A mental health professional co -responder grant agreement. e. Budget legislation: (1) Discussion only on an ordinance adopting the biennial budget of the City of Tukwila for the 2023-2024 biennium. (2) Discussion only on a resolution adopting the 2023-2028 Financial Planning Model and the Capital Improvement Program for general government and the City's enterprise funds. (continued...) Pg.1 Pg.3 Pg.11 Pg.19 Pg.85 Pg.93 Pg.97 Pg.101 Pg.107 Pg.129 Pg.131 Pg.135 COMMITTEE OF THE WHOLE MEETING November 28, 2022 Page 2 4. SPECIAL ISSUES (cont.) f. Business and Occupation (B&O) tax legislation: Discussion only on an ordinance establishing a new Chapter 3.26 of the Tukwila Municipal Code (TMC) entitled, "Business and Occupation Tax"; establishing TMC Chapter 3.27 entitled "Business and Occupation Tax Administrative Provisions"; and providing for a referendum process. Pg.137 5. REPORTS a. Mayor b. City Council c. Staff 6. MISCELLANEOUS 7. EXECUTIVE SESSION 8. ADJOURN TO SPECIAL MEETING ❖ SPECIAL MEETING ❖ • Ord #2688 • Res #2058 1. CALL TO ORDER / ROLL CALL 2. UNFINISHED BUSINESS a. A resolution repealing Resolution Nos. 2012, 2021, and 2046, and adopting a Consolidated Permit Fee Schedule. b. Budget legislation: (1) An ordinance adopting the biennial budget of the City of Tukwila for the 2023-2024 biennium. (2) A resolution adopting the 2023-2028 Financial Planning Model and the Capital Improvement Program for general government and the City's enterprise funds. c. Business and Occupation (B&O) tax legislation: An ordinance establishing a new Chapter 3.26 of the Tukwila Municipal Code (TMC) entitled, "Business and Occupation Tax"; establishing TMC Chapter 3.27 entitled "Business and Occupation Tax Administrative Provisions"; and providing for a referendum process. Pg.175 Pg.129 Pg.131 Pg.135 Pg.137 3. ADJOURNMENT This agenda is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities. Remote Tukwila Council meetings are audio taped (and video taped as of 9/14/20). Available at www.tukwilawa.gov) WELCOME TO THE TUKWILA CITY COUNCIL MEETING The Tukwila City Council encourages community participation in the local government process and welcomes attendance and public comment at its meetings. MEETING SCHEDULE Regular Meetings are held at 7:00 p.m. on the 1st and 3rd Mondays of each month. The City Council takes formal action in the form of motions, resolutions and ordinances at Regular Meetings. Committee of the Whole Meetings are held at 7:00 p.m. on the 2nd and 4th Mondays of each month. The City Council considers current issues, discusses policy matters in detail, and coordinates the work of the Council at Committee of the Whole meetings. PUBLIC COMMENTS Members of the public are given the opportunity to address the Council for up to 5 minutes on items both on and not on the meeting agenda during Public Comments. The City Council will also accept comments on an agenda item when the item is presented in the agenda, but speakers are limited to commenting once per item each meeting. When recognized by the Presiding Officer, please go to the podium if on-site or turn on your microphone if attending virtually and state your name dearly for the record. The City Council appreciates hearing from you but may not respond or answer questions during the meeting. Members of the City Council or City staff may follow up with you following the meeting. PUBLIC HEARINGS Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land -use laws, annexations, rezone requests, public safety issues, etc. The City Council Rules of Procedure provide the following guidelines for Public Hearings: 1. City staff will provide a report summarizing and providing context to the issue at hand. 2. The proponent shall speak first and is allowed 15 minutes to make a presentation. 3. The opponent is then allowed 15 minutes to make a presentation. 4. Each side is then allowed 5 minutes for rebuttal. 5. After the proponents and opponents have used their speaking time, the Council may ask further clarifying questions of the speakers. 6. Members of the public who wish to address the Council on the hearing topic may speak for 5 minutes each. 7. Speakers are asked to sign in on forms provided by the City Clerk. 8. The Council may ask clarifying questions of speakers and the speakers may respond. 9. Speakers should address their comments to the City Council. 10. If a large number of people wish to speak to the issue, the Council may limit the total amount of comment time dedicated to the Public Hearing. 11. Once the Presiding Officer closes the public hearing, no further comments will be accepted, and the issue is open for Councilmember discussion. 12. Any hearing being held or ordered to be held by the City Council may be continued in the manner as set forth by RCW 42.30.100. For more information about the City Council, including its complete Rules of Procedure, please visit: https://www.tukwilawa.gov/departments/city-council/ COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/28/22 RB 12/5/22 RB ITEM INFORMATION ITEM No. 4.A. STAFF SPONSOR: RACHEL BIANCHI ORIGINAL AGENDA DATE: 11/ 28/ 22 AGENDA ITEM TITLE 2023 Legislative Agenda CATEGORY ® Discussion Mtg Date 11/28/22 Motion Mtg Date Resolution Mtg Date 12/5/22 ❑ Ordinance Mtg Date Bid Award Mtg Date ❑ Public Hearing ❑ Other Mtg Date Mtg Date SPONSOR ❑ Council ❑ Mayor ® Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PIF SPONSOR'S SUMMARY The Council is being asked to adopt the 2023 Legislative Agenda. REVIEWED BY ❑ Trans&Infrastructure Svcs ® Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/14/22 COMMITTEE CHAIR: QUINN & HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. Administrative Services COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/28/22 12/5/22 MTG. DATE ATTACHMENTS 11/28/22 PowerPoint Informational Memorandum dated October 18, 2022 Draft Resolution and Proposed 2023 Legislative Agenda (updated for 11/28 C.O.W.) Minutes from the 11/14 CSS Committee and 11/14 FIN&GOV Committee meetings 12/5/22 1 2 • +r • et) cu 4-0 rcS 01 J Q� CNI Monday, November 28, 2022 . a.) a o 470 '12 �nn s O aCM=1 L.) 4 0 M N J . _ v1 M 01-0 N c 0 m w N N 0 N 0 M Q) s 0 4J rnN 0 v E 0 Q) N 4J Q) Biennial Bud 0 aS Cn 0 71 " a_+ QJ Q Fzs Q cics OUH 0 L_ L O a ln 1 C _O' 0 0 Q) 7c. 05 O= Q i c 0 V ▪ � O Q) Q) — s o .0c0 a) e ln 4 -, O N • E N 11)CU as— a--+ '> ▪ > 0 4J ■ cu CU s. c u O = vl Q . v) E ,— .— u 0 a) a) c) a) cu ,— .47) v) L E a) -0 +c, E a. Ercs cu . N CP cu cu ,,, E ! cu cv —1 cuE v) rz = c ,>oci) �c _ 1 it a--) N Ms _ N a) .0 .0 asc "r61-C; >, 46•. 0 = 0 0 0 E 0_ N co a) a' a) a� 0 Le-)-- 0000 a�0 3c: 0 L( N N ce cu = a _ km.) V / •E ■ Na) ao v) Om 0 L � -0 Q2 E ro > 4-0 4� O0- .- > • 412 -0 (1) - LE 0) E a) v) a� O CU tA _ > -0 L a) O : = c > Z v) . a).6a .2 s rcl .6_,s0-, a, as . ... . a) a, o = • .6_, g no 0 1- •) as L _ . 047, aJ = s V -0 0 cu riCS 0 C•— CL)L V = = CO CO >• >a) —0NV V � fB L o5 v) cu U L Flo -c (r) U ca cn c U co C tin ra vi 2 0 .c cU co N 0 - 2 co cc m N CP State Government & Elections Ways & Means L L • ( co _c _c U U v N + • U U_ a-- V)> >.> .� C C v O 0 lv0 >▪ ` s_ cm c U -0 v CO MCr34— m cn CO }, 2 o o co N .� .0 Q > N ID c ate -+ Q w CC . CO U L. I— V) O Q Q N N CC CC 7 8 TO: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Community Services and Safety Committee Finance & Governance Committee FROM: Rachel Bianchi, Deputy City Administrator CC: Mayor Ekberg DATE: October 18, 2022 SUBJECT: 2023 Legislative Agenda ISSUE The City of Tukwila develops an annual legislative agenda for use in Olympia during the legislative session. BACKGROUND The City's Legislative Agenda provides direction to staff and consensus among the elected officials as to what policy positions are taken on behalf of the City of Tukwila during the legislative session. RECOMMENDATION The Community Services and Safety and Finance & Governance Committees are being asked to provide comment and feedback, which will be incorporated into the agenda for discussion at the November 28, 2022, Committee of the Whole meeting. The full Council is being asked to formally adopt the agenda at the December 5 Regular Meeting. The City's lobbyist, David Foster, will provide a legislative update at the November 28 Committee of the Whole meeting. ATTACHMENTS Resolution in draft form Attachment A — Legislative Agenda 9 10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A LEGISLATIVE AGENDA FOR USE DURING THE 2023 WASHINGTON STATE LEGISLATIVE SESSION. WHEREAS, the City Council has agreed to pursue certain legislative issues for 2023; and WHEREAS, the City Council recognizes this agenda is not all encompassing, in that certain additional items may arise during the legislative session that require support or opposition; and WHEREAS, a legislative agenda outlines the priority issues that elected officials may discuss when speaking to members of the Washington State Legislature; and WHEREAS, the City Council agreed to these priorities at the City Council Meeting on December 5, 2022; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: The Tukwila City Council has identified priorities for the 2023 Washington State Legislative Session that provide a framework for advocacy on behalf of the community. The City of Tukwila 2023 Legislative Agenda is hereby incorporated by reference as Attachment A. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Thomas McLeod, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney Attachment A: City of Tukwila 2023 Legislative Agenda CC:\Legislative Development\Legislative Agenda for 2023 strike-thru 11-15-22 RB:AY Review and analysis by Andy Youn Page 1 of 1 11 NOTE: Shaded text reflects changes made after Finance & Governance Committee and Community Safety & Services Committee meetings on 11/14/22. ATTACHMENT A City of Tukwila 2022 2023 Legislative Agenda Transportation & Infrastructure • Provide funding for critical local infrastructure, including the Allentown Bridge, which is • .•e e•. ae - • Provide funding for the full replacement of the Tukwila Community Center's heating and air cooling system, which is functionally obsolete and impedes the City's ability to provide full programming and meet critical safety -net needs during extreme winter events. • Create stable, reliable infrastructure assistance funding for cities to assist in repairing roads, bridges and other public infrastructure that support economic development. • Honor funding commitments made in Move Ahead Washington. Housing & Human Services • Address the housing stability crisis by providing additional tools for rental assistance, foreclosure/eviction prevention and capital construction of affordable housing, including starter homes and options for people aging. • Fund additional investments in behavioral health, including in-patient and out-patient facilities, as an alternative to jail and align State law with best practices to allow individuals in crisis to receive necessary and life-saving services. • We strongly encourage the State to adequately fund human services programs for the health of the safety net. Advancing Equity • Develop and implement a racial equity toolkit for legislation, policies and programs to advance racial equity in Washington. • Ensure affordable, high-quality broadband internet access as defined by SB 5717 is available to all households and businesses to provide educational, entrepreneurial, business and accessibility equity for all Washingtonians to access the internet. • Enact a financial inclusion law that will address the public safety and equal access issues caused by bank de -risking. Law Enforcement Use of Force • Respond to the Blake decision by revising the current system so that it can be more effectively administered within and across jurisdictions. • Further clarify the ability for law enforcement to conduct vehicle pursuits using a reasonable suspicion standard in specific circumstances when there is an immediate threat to public safety. Sharer) Revenue • Include local governments in any new statewide revenues to ensure the long term health of municipalities. 12 Revenue Reform • Allow cities the authority and flexibility to address the fact that growth in the cost of services continue to outstrip revenues. • The state should amend the law that limits annual property tax growth to 1 percent and work with cities to authorize additional funding flexibility and opportunities at the local level. Education • Implement needs -based funding for allocation of social emotional student support resources and expand funding for learning opportunities for summer school students. • Increase funding for homeless students and secondary ELL students. • Incorporate early learning for low-income students as a part of Basic Education. • Improve language access for non English speaking families in school settings and build career pathways for multi lingual students to leverage interpretation and translation skills. Preserve Lodging Tax Flexibility • Ensure the definition of "tourist" in Washington State remains flexible to allow jurisdictions and Lodging Tax Advisory Committees to distribute lodging tax dollars in a manner that best serves each individual community. Preparing for Our Future • Enact policies to prepare to combat climate change, including adequately budgeting for its effects and providing tools to cities to prepare and address the ramifications of flooding, pollution and other key factors. • Continue to invest in workforce education and job training to ensure Washingtonians have access to high-quality career and technical education opportunities. • Support a permanent policy that allows greater flexibility for local governments to hold virtual meetings without a physical location. Law Enforcement Use of Force • Support clarification of the civil standards for use of force requirements so law enforcement can better understand the state requirements and know when thcy can use force to intervene in a situation, including a mental health crisis where a crime is not being committed. 13 14 City of Tukwila City Council Community Services & Safety Committee Meeting Minutes November 14, 2022 - 5:30 p.m. - Hybrid Meeting; Hazelnut Conference Room & MS Teams Councilmembers Present: Staff Present: Kathy Hougardy, Chair; Mohamed Abdi, Tosh Sharp David Cline, Rachel Bianchi, Norm Golden, Kris Kelly, Tiffany Johnson, Matt Austin, Laurel Humphrey Chair Hougardy called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Resolution: 2023 Legislative Agenda Staff is seeking Council approval of a resolution adopting the legislative agenda for use in *Olympia during the 2023 session. Committee Recommendation: Unanimous approval. Forward to November 28, 2022 Committee of the Whole. B. Puget Sound Regional Fire Authority Transition Staff is seeking Council approval of four station lease agreements, four ordinances amending the Municipal Code to conform with the transition of fire services, and one resolution seeking annexation. Committee Recommendation: Unanimous approval. Forward to November 28, 2022 Committee of the Whole. C. Contract: Foster Golf Links Water Main Repair Staff is seeking a contract with Mr. Rooter Plumbing in an amount not to exceed $72,675,12 for repair of a water main line break at Foster Golf Links. Committee Recommendation: Unanimous approval. Forward to November 21, 2022 Regular Consent Agenda. 11. MISCELLANEOUS Councilmember Sharp reported concerns with cars parking illegally on sidewalks near businesses on Tukwila International Boulevard. Councilmembers and staff discussed business outreach and enforcement possibilities. The meeting adjourned at 6:37 p.m. '7 Committee Chair Approval Minutes by LH 15 City of Tukwila City Council Finance & Governance Committee Meeting Minutes November 14, 2022 - 5:30 p.m. - Hybrid Meeting; Duwamish Conference Room & MS Teams Councilmembers Present: Staff Present: I. BUSINESS AGENDA 16 De'Sean Quinn, Chair; Kate Kruller, Cynthia Delostrinos Johnson Vicky Carlsen, David Cline, Rachel Bianchi, Julie Hatley, Tony Cullerton, David Rosen, Pete Mayer A. Contract Amendment: Prosecution Services Staff is seeking approval of a contract amendment with Walls Law Firm to extend prosecution services through June 30, 2023 at a continued rate of $23,000 per month. Committee Recommendation t Unanimous approval. Forward to November 21, 2022 Regular Consent Agenda. B. Ordinances: Fire and Park Impact Fees Staff is seeking approval of ordinances to update Fire and Park Impact Fees beginning April 1, 2023. Committee Recommendation Unanimous approval. Forward to November 28, 2022 Committee of the Whole. C. Non -Represented Employees Market and Compression Study Staff is seeking approval to include funding for a non -represented employee market and compression study in the 2023 budget. This was intended to be completed in 2020 but was postponed due to pandemic response and budget cuts. Committee Recommendation Unanimous approval. Forward to November 14, 2022 Committee of the Whole. D. American Rescue Plan Act Expenditure Report January -June Staff presented the report. Item(s) for follow-up: • Explain CPI impact to ARPA allocations in next report. Committee Recommendation Discussion only. E. Resolution: 2023 Legislative Agenda Finance & Governance Committee Minutes November 14, 2022 Staff is seeking Council approval of a resolution adopting the legislative agenda for use in Olympia during the 2023 session. Item(s) for follow-up: • Make following changes: o Transportation & Infrastructure in first heading o Under Law Enforcement Use of Force, add the word "further" before "clarify" in the second bullet • Check for alignment with SCA on law enforcement section. Committee Recommendation Unanimous approval. Forward to November 28, 2022 Committee of the Whole. F. Monthly General Fund Update Staff presented the report. Item(s) for follow-up: • Provide amount of solid waste utility tax allocation in Fund 104 • Provide calculation if reserve policy was reduced by 5% Committee Recommendation Discussion only. MISCELLANEOUS The meeting adjourned at 6:36 p. Committee Chair Approval 17 18 COUNCIL AGENDA SYNOPSIS 1 nitials Meeting Dale Prepared fey Mayor's rerim Council rerie2v 11/28/22 CT 12/5/22 CT ITEM INFORMATION ITEM NO. 4.B. (1) STAFF SPONSOR: DAVID CLINE ORIGINAL AGENDA DATE: 11/28/22 AGENDA ITEM TITLE Transition of Fire Services Next Steps CATEGORY ® Discussion Mtg Date 11/28/22 ❑ Motion Mtg Date ❑ Resolution Mtg Date ® Ordinance Mtg Date 12/5/22 ❑ Bid Award Mtg Date ❑ Public Hearing Altg Date ® Other t\Itg Date 12/5/22 SPONSOR ❑ Council ® Mayor ❑ Admin SVCS ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PIF SPONSOR'S SUMMARY Transition of Fire Services Next Steps. Council is being asked to approve lease agreements for Fire Stations 51 through 54; to review and approve an ordinance repealing TMC 2.24 Fire Chief; and to review and approve ordinances repealing and reenacting TMC 2.42 Civil Service Commission, TMC 2.48 Fire Department, TMC 2.92 Hazardous Materials Incident Command Agency. REVIEWED BY ❑ Trans&Infrastructure Svcs ® Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/14/2022 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. Mayor's Office COMMITTEE Unanimous Approval; Forward to 11/28/2022 Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: GENERAL FUND Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/28/22 12/5/22 MTG. DATE ATTACHMENTS 11/28/22 Informational Memorandum dated 11/7/2022 Draft Lease Agreements Fire Stations 51-54 Draft Ordinance TMC 2.24 Fire Chief Draft Ordinance TMC 2.42 Civil Service Commission Draft Ordinance TMC 2.48 Fire Department Draft Ordinance TMC 2.92 Hazardous Materials Incident Command Agency Minutes from 11/14/2022 Community Services & Safety Committee Meeting 19 20 T0: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Mayor Ekberg Community Services and Safety Committee FROM: David Cline, City Administrator DATE: November 7, 2022 SUBJECT: Transition of Fire Services Next Steps ISSUE In October the City of Tukwila entered into an interlocal agreement (ILA) with the Puget Sound Regional Fire Authority (PSRFA) for provision of fire and emergency medical services effective January 1, 2023. In order to implement the terms of the interlocal agreement lease agreements need to be executed for each Fire Station and several chapters of the Tukwila Municipal Code (TMC) need to be updated. BACKGROUND Pursuant to Section 5.1 of the ILA with PSRFA, Real Property, the City owns and shall retain title to Fire Stations 51 through 54 and shall lease to the PSRFA the real property and improvements pursuant to the terms of separate written leases. Per RCW 35A.11.010 and 35A.11.020 all lease agreements must go before City Council for authorization. Additionally, updates are needed to the Tukwila Municipal Code to eliminate positions, remove the Fire Department from Civil Service Commission oversight and reflect that fire services are being provided by Puget Sound Regional Fire Authority. DISCUSSION Lease agreements are attached for Fire Stations 51 through 54. The lease agreements align with the PSRFA ILA are for a for a two-year period, with annual rent of One Dollar and No/100 Cents ($1.00) for use of the property as a fire station and administration purposes and for no other purpose unrelated to the management and delivery of fire protection and emergency medical services. All of the agreements are essentially the same, with the exception of Fire Station 52 which allows the City 24/7 access to use Rooms 210 and 212 as the City's back up Emergency Operations Center; allows the use of the Room 210 as a public meeting space up to twenty hours per calendar week, provided staff is onsite; use of the locked closet located on the second floor, inside the Room 210 for the storage of ham radios and related equipment; and assigned office space for the Tukwila Fire Marshal Office. 21 INFORMATIONAL MEMO Page 2 The attached ordinances repeal TMC 2.24 Fire Chief in its entirety; repeal and reenact TMC 2.42 Civil Service Commission to eliminate references to the Fire Department; repealing TMC 2.48 Fire Department to eliminate provisions for volunteer firefighters and the Fire Marshal position and reenacting TMC 2.48 City Fire Department Pension Participants to provide for the Fireman's Pension Board that is still active for previously retired fire personnel as well as adding a statement that any references in the Tukwila Municipal Code to the Tukwila Fire Department or Fire Marshal shall be interpreted to refer to the Puget Sound Regional Fire Authority effective January 1, 2023; and repeal and reenact TMC 2.92 Hazardous Materials Incident Command Agency to designate the Puget Sound Regional Fire Authority as the hazardous materials incident command agency for all Tukwila hazardous materials incidents. RECOMMENDATION The Committee is being asked to move these items forward to the November 28, 2022 Committee of the Whole. ATTACHMENTS Fire Station 51 Lease Agreement Fire Station 52 Lease Agreement Fire Station 53 Lease Agreement Fire Station 54 Lease Agreement Ordinance Repealing TMC 2.24 Fire Chief Ordinance Repealing and Reenacting TMC 2.42 Civil Service Commission Ordinance Repealing and Reenacting TMC 2.48 City Fire Department Pension Participants Ordinance Repealing and Reenacting TMC 2.92 Hazardous Materials Incident Command Agency 22 LEASE AGREEMENT BETWEEN THE CITY TUKWILA AND PUGET SOUND REGIONAL FIRE AUTHORITY FIRE STATION 51 THIS LEASE AGREEMENT (hereinafter "Lease") is between the CITY OF TUKWILA, a municipal corporation of the State of Washington ("City"), and PUGET SOUND REGIONAL FIRE AUTHORITY, a Washington municipal corporation ("RFA") (collectively referred to as "the Parties"). RECITALS 1. The City's legislative body and the RFA's governing board executed an Interlocal Agreement for Consolidation of Fire Services to allow the RFA to provide fire protection, fire suppression, fire marshal services, emergency medical services, and nonemergency medical services to the City ("the ILA"). 2. The City owns real property legally described in Exhibit A attached and incorporated herein and located at 17951 Southcenter Parkway, Tukwila, Washington 98188 (the "Property") (Parcel #s 3523049008 & 3523049040 (shown as a vacant lot)). A portion of the Property has been used by the City as a fire station and that portion will now be used by the RFA under the terms of this Lease; and AGREEMENT NOW, THEREFORE, the City and RFA agree as follows: 1. PREMISES. 1.1. As -Is. The City is providing the Premises in "as -is" condition for the RFA's use. The City makes no representation regarding the condition of the Premises or improvements located on the same. 2. USE. 2.1. Permitted Use. The RFA shall use the Premises for a fire station, and administration purposes (the "Permitted Use") and for no other purpose unrelated to the management and delivery of fire protection and emergency medical services. 2.2. Liens and Encumbrances. The RFA shall keep the Premises free and clear of any liens and encumbrances arising out of or relating to its use or occupancy of the Premises. Fire Station 51 Lease Agreement Page 1 of 10 23 24 3. TERM. 3.1. Term Defined. The term of this Lease shall coincide with the term set forth in Section 2.1 of the Parties' ILA, which shall commence on January 1, 2023 ("Commencement Date"). 3.2. End of Term. Upon the expiration or termination of the Term, as applicable, the RFA shall surrender the Premises to the City in the same or better condition as on the Commencement Date, reasonable wear and tear excepted. 3.3. Hold Over. If the RFA remains in possession of the Premises after termination of this Lease, the occupancy shall not be an extension or renewal of the Term. The occupancy shall be a month-to-month tenancy, on terms identical to the terms of this Lease, which may be terminated by either party on thirty (30) days written notice. 4. LEASE PAYMENT. 4.1. Rent. The RFA shall pay to the City the annual rent of One Dollar and No/100 Cents ($1.00) ("Rent"). The first installment shall be due and payable on or before Commencement Date, and subsequent installments shall be due and payable on or before the 1st day of each year thereafter. 5. UTILITIES AND OTHER EXPENSES. 5.1. Utilities. The RFA will be responsible for all utilities serving the Premises. 6. MAINTENANCE AND REPAIR. 6.1. Maintenance. Maintenance and Repair responsibilities shall follow the requirements of Section 5.2 of the ILA. 7. TENANT IMPROVEMENTS. 7.1. Construction. Prior to any construction, alteration, replacement, removal, or major repair of any improvements on the Premises, the RFA shall submit to the City plans and specifications that describe the proposed activity. Construction shall not commence until the City has approved the plans and specifications in writing. The City shall have thirty (30) days in which to review the proposed plans and specifications. The plans and specifications shall be deemed approved and the requirement for the City's written consent shall be treated as waived, unless the City notifies the RFA otherwise within the thirty (30) days. Upon completion of construction, the RFA shall promptly provide the City with as -built plans and specifications. The City's consent and approval shall not be required for any routine maintenance or repair of improvements made by the RFA pursuant to its obligation to maintain the Premises in good order and repair that does not result in the construction, alteration, replacement, removal, or major repair of any improvements on the Premises. The provisions of this section do not obviate any permit requirements that may apply to the proposed activity. Fire Station 51 Lease Agreement Page 2 of 10 7.2. Ownership of Improvements. On the termination of the Lease, all RFA -initiated improvements shall become the property of the City without payment by the City. 8. INDEMNIFICATION. 8.1. The RFA agrees that it will protect, save, defend, hold harmless and indemnify the City, its officials, employees, volunteers and agents from any and all demands, claims, suits, actions, judgments, or liabilities for injury or death of any person, or for loss or damage to property, arising as a result of accidents, injuries, or other occurrences on the Premises or on City's Property, occasioned by either the negligent or willful conduct of the RFA, its agents or any person or entity holding under the RFA or any person or entity on the Premises or on the City's property as a result of RFA's activity, regardless of who the injured party may be. Notwithstanding the foregoing, the City shall, to the extent permitted by law, indemnify and hold the RFA harmless for any and all demands, claims, judgments, or liability for loss or damage arising from the City's negligent, reckless and/or willful acts (including those of the City's employees, officials, or agents). It is further specifically and expressly understood that the indemnification provided herein constitutes the RFA's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated and agreed to by the RFA and City. The provisions of this section shall survive the expiration or termination of this Lease. 8.2. The RFA shall indemnify and hold City harmless from any and all claims, demands, judgments, orders, or damages resulting from hazardous substances on the Premises caused in whole or in part by the activity of the RFA, its agents, subtenants, or any other person or entity on the Premises during any period of time that the RFA has occupied all or a portion of the Premises during the term of the Lease. The City shall, to the extent permitted by law, indemnify and hold RFA harmless from any and all claims, demands, judgments, orders or damages resulting from hazardous substances on the Property caused by the City. 8.3. "Hazardous Substance" means any substance which now or in the future becomes regulated or defined as Hazardous Substance or Hazardous Waste under any federal, state, or local statute, ordinance, rule, regulation, or other law relating to human health, environmental protection, contamination or cleanup, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C. 9601 et seq., and Washington's Model Toxics Control Act ("MTCA"), RCW 70.105D.010 et seq. 8.4. The provisions of this Section 8 shall survive the expiration or termination of this Lease. 9. ASSIGNMENT AND SUBLETTING. 9.1. The RFA shall not sell, convey, mortgage, assign, pledge, sublet, or otherwise transfer or encumber all or any part of the RFA's interest in this Lease or the Premises without the City's prior written consent which may not be unreasonably withheld by the City. Fire Station 51 Lease Agreement Page 3 of 10 25 26 In the event of such consent, each permitted transferee shall assume all obligations under this Lease. No assignment, sublet, or transfer shall release, discharge, or otherwise affect the liability of RFA. The consolidation of the RFA with another entity or the formation of a regional fire authority in which the RFA is a participating jurisdiction shall not constitute an assignment under this Lease. The City's consent shall not be required for a sublease of the premises to another governmental entity providing services that directly support and benefit the operation of the regional RFA. 10. INSURANCE. 10.1. During the term of this Lease and any extension thereof, the City shall maintain an insurance policy on the Premises in the amount of the replacement cost, for damage from fire; earthquake; and other perils. Said insurance policy shall also insure the replacement value of the equipment owned by the City pursuant to this Lease. The proceeds on a claim against said insurance policy for damage shall be used to repair damage to the building so insured and to repair or replace any damaged personal property provided by the City. 10.2. The RFA shall be responsible for maintaining its own fire and hazard insurance on RFA -owned personal property and leasehold improvements placed within and on the Premises by the RFA. 10.3. The RFA shall procure and maintain for the duration of the Lease, insurance against claims for injuries to persons or damage to property which may arise from or in connection with this Lease by the RFA, its agents, representatives, employees or subcontractors. 11. DAMAGE OR DESTRUCTION. The Parties recognize that some or all use of the Property or Premises may be interfered with or prevented because of fire, earthquake, flood, storm, landslide, act of war, vandalism, theft or other extraordinary casualty ("Casualty"). 11.1. Material Damage. If the Premises are damaged or destroyed by fire or any Casualty which cannot, despite diligent, good faith efforts be repaired or restored within one hundred twenty (120) days following the date on which such damage occurs, then RFA may elect to terminate the Lease effective as of the date of such damage or destruction. Within thirty (30) days after the date of such damage, the parties shall determine how long the repair and restoration will take. After that determination has been made, RFA shall have a period of thirty (30) days to terminate the Lease by giving written notice to the City. 11.2. Repair after Damage. If the RFA does not give notice of the RFA's election to terminate as provided in subsection 11.1, then the City shall, subject to the provisions of this Section, immediately commence and diligently pursue the completion of the repair of such damage so that the Premises are restored to a condition of similar quality, character and utility for the RFA's purposes. Notwithstanding anything contained herein to the contrary, if the Premises are not repaired and restored within one hundred twenty (120) days from the date of the damage, the RFA may cancel the Lease at any time before the City completes the repairs and delivers the restored Premises to the RFA. If the RFA does not so terminate, the City shall continue to restore the Premises. The RFA shall have no claim against the City for any direct, incidental or consequential Fire Station 51 Lease Agreement Page 4 of 10 damages arising from the City's failure to commence or complete any repairs to the Premises. In no event shall the City be obligated to spend more money on the repair than is provided by insurance proceeds in subsection 11.1. 11.3. Uninsured Damage. If damage or destruction is caused by a peril not required to be insured against hereunder and for which insurance proceeds are not available, either the City or RFA may terminate this Lease by thirty (30) days written notice to the other of its election to do so, and the Lease shall be deemed to have terminated as of such date unless the other party agrees in writing to pay for such repairs or restoration. 12. DEFAULT AND REMEDIES. 12.1. Acts Constituting Default. The RFA shall be in default of this Lease on the occurrence of any of the following: (a) Failure to pay expenses when due; (b) Failure to comply with any law, regulation, policy, or order of any lawful governmental authority; (c) Failure to comply with any other provision of this Lease; (d) Failure to cure a default pursuant to Section 12.2 below; (e) Proceedings are commenced by or against the RFA under any bankruptcy act or for the appointment of a trustee or receiver of RFAs' Premises; or (f) The RFA vacates or abandons the Premises. 12.2. Failure to Cure. A default shall become an event of default ("Event of Default") if the RFA fails to cure, or take positive steps to cure, the default within 30 days after the City provides the RFA with written notice of default, which specifies the nature of the default. 12.3. City's Remedies Upon Default. Upon an Event of Default, the City may terminate this Lease and remove the RFA by summary proceedings or otherwise. The City's reentry or repossession of the Property under this subsection shall not be construed as an election to terminate this Lease or cause a forfeiture of rents or other charges to be paid during the balance of the Term, unless the City gives a written notice of termination to the RFA or termination is decreed by legal proceedings. 13. ENTRY BY THE CITY. The City shall have the right to enter the Premises at any reasonable hour to inspect for compliance with the terms of this Lease upon twenty-four (24) hours' notice. The City and/or its agents shall comply with all of the RFA's work safety rules and restrictions. 14. NOTICE. Any notices required or permitted under this Lease may be personally delivered, delivered by certified mail, return receipt requested, to the addresses listed on the signature page or to such other places as the parties may direct in writing from time to time. A notice shall be deemed given and delivered upon personal delivery or three (3) days after being mailed as set forth above, whichever is applicable. Fire Station 51 Lease Agreement Page 5 of 10 27 28 15. MISCELLANEOUS. 15.1. Authority. The City and the RFA represent that each person signing on this Lease on its behalf is authorized to do so. 15.2. Successors and Assigns. This Lease shall be binding upon and inure to the benefit of the parties, their successors and assigns. 15.3. Headings. The headings used in this Lease are for convenience only and in no way define, limit, or extend the scope of this Lease or the intent of any provision. 15.4. Waiver. The waiver by the City of any breach or default of any term, covenant, or condition of this Lease shall not be deemed to be a waiver of such term, covenant, or condition; of any subsequent breach or default of the same; or of any other term, covenant, or condition of this Lease. The City's acceptance of a rental payment shall not be construed to be a waiver of any preceding or existing breach other than the failure to pay the particular rental payment that was accepted. 15.5. Cumulative Remedies. The rights and remedies of the City under this Lease are cumulative and in addition to all other rights and remedies afforded to the City by law or equity or otherwise. 15.6. Time is of the Essence. TIME IS OF THE ESSENCE as to each and every provision of this Lease. 15.7. Invalidity. If any provision of this Lease shall prove to be invalid, void, or illegal, it shall in no way affect, impair, or invalidate any other provision of this Lease. 15.8. Applicable Law and Venue. This Lease shall be interpreted and construed in accordance with the laws of the State of Washington. Any reference to a statute shall mean that statute as presently enacted or hereafter amended or superseded. Venue for any action arising out of or in connection with this Lease shall be in the Superior Court for King County, Washington. 15.9. Modification. Any modification of this Lease must be in writing and signed by the parties. The City shall not be bound by any oral representations or statements. 15.10. Quiet Enjoyment. The City covenants and agrees that the RFA, upon performing the terms and conditions of the Lease, may peacefully hold and enjoy the Premises during said term without any interruption by the City, its successors or assigns, or any person or company lawfully claiming by or through it. 15.11. Recording of Short Form Lease. Neither the City nor the RFA may record this Lease without the other's prior approval, but the Parties will at any time at the request of either party promptly execute duplicate originals of an instrument, in recordable form, which will constitute a short form of this Lease, setting forth a description of the Premises, the terms of this lease and other provisions hereof, except the rental and other provisions as either party may request, which may be recorded. 15.12. Duplicate Originals. This Lease Agreement may be executed in duplicate originals. Fire Station 51 Lease Agreement Page 6 of 10 THIS AGREEMENT requires the signature of all parties and is executed as of the date of the last signature below and is effective as of January 1, 2023. PUGET SOUND REGIONAL FIRE AUTHORITY By: Chief DATE: APPROVED AS TO FORM: PSRFA Attorney NOTICES TO BE SENT TO: Puget Sound Regional Fire Authority Administration 24611 116th Avenue SE Kent, WA 98030 CITY OF TUKWILA By: Mayor DATE: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney NOTICES TO BE SENT TO: City of Tukwila Mayor's Office 6200 Southcenter Blvd. Tukwila WA 98188 Fire Station 51 Lease Agreement Page 7 of 10 29 30 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 2022, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the foregoing instrument as , is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she is authorized to execute the instrument on behalf of Puget Sound Regional Fire Authority as its , and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. - Notary Seal Must Appear Within This Box IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington Residing at , Washington My Appointment Expires Fire Station 51 Lease Agreement Page 8 of 10 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 2022, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the foregoing instrument as , is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she is authorized to execute the instrument on behalf of the City of Tukwila as its Mayor, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. Notary Seal Must Appear Within This Box IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington Residing at , Washington My Appointment Expires Fire Station 51 Lease Agreement Page 9 of 10 31 EXHIBIT A TUKWILA STATION 51 LEASE ABBREVIATED LEGAL DESCRIPTION NEW PARCEL "C" DESCRIBED AND DELINEATED IN CITY OF TUKWILA BOUNDARY LINE ADJUSTMENT NO L 13-005 RECORDING NO 20130227900005 (BEING A PORTION OF NE QTR NW QTR STR 35-23-04); TGW ADJOINING PORTION OF N HALF OF S 178TH ST VACATED BY CITY OF TUKWILA ORDINANCE NO 2400 RECORDING NO 20160120000736; TGW ADJOINING PORTION OF SOUTHCENTER PARKWAY VACATED BY CITY OF TUKWILA ORDINANCE NO 2240 Also known as King County Parcel Nos. 3523049008, located at 17951 Southcenter Pkwy. Fire Station 51 Lease Agreement Page 10 of 10 32 LEASE AGREEMENT BETWEEN THE CITY TUKWILA AND PUGET SOUND REGIONAL FIRE AUTHORITY FIRE STATION 52 THIS LEASE AGREEMENT (hereinafter "Lease") is between the CITY OF TUKWILA, a municipal corporation of the State of Washington ("City"), and PUGET SOUND REGIONAL FIRE AUTHORITY, a Washington municipal corporation ("RFA") (collectively referred to as "the Parties"). RECITALS 1. The City's legislative body and the RFA's governing board executed an Interlocal Agreement for Consolidation of Fire Services to allow the RFA to provide fire protection, fire suppression, fire marshal services, emergency medical services, and nonemergency medical services to the City ("the ILA"). 2. The City owns real property legally described in Exhibit A attached and incorporated herein and located at 15447 65th Avenue S., Tukwila, Washington 98188 (the "Property") (Parcel #3597000320). A portion of the Property has been used by the City as a fire station and that portion will now be used by the RFA under the terms of this Lease; and AGREEMENT NOW, THEREFORE, the City and RFA agree as follows: 1. PREMISES. As -Is. The City is providing the Premises in "as -is" condition for the RFA's use. The City makes no representation regarding the condition of the Premises or improvements located on the same. 2. USE. 2.1. Permitted RFA and City Uses. The RFA shall use the Premises for a fire station, and administration purposes (the "Permitted Use") and for no other purpose unrelated to the management and delivery of fire protection and emergency medical services. The City shall continue to use the Premises for the following purposes: (a) The City shall be permitted to access and use the EOC closet (also known as "212 EOC Storage") and the main training room (also known as "210 Training Room") as the City's backup Emergency Operations Center, on a 24/7 basis and at any time without notice, in the event of an emergency and until termination of the emergency event. Fire Station 52 Lease Agreement Page 1 of 10 33 34 (b) The City shall be permitted to use the 210 Training Room as a public meeting space up to twenty (20) hours per calendar week, provided staff is on-site to facilitate such use; (c) The City shall be permitted to use the locked closet located on the second floor, inside the 210 Training Room (said closet also known as "213 HAM") for the storage of ham radios and related equipment; and (d) Personnel assigned to the Tukwila Fire Marshal Office shall be permitted to maintain a physical office presence at Fire Station 52. 2.2. Liens and Encumbrances. The RFA shall keep the Premises free and clear of any liens and encumbrances arising out of or relating to its use or occupancy of the Premises. 3. TERM. 3.1. Term Defined. The term of this Lease shall coincide with the term set forth in Section 2.1 of the Parties' ILA, which shall commence on January 1, 2023 ("Commencement Date"). 3.2. End of Term. Upon the expiration or termination of the Term, as applicable, the RFA shall surrender the Premises to the City in the same or better condition as on the Commencement Date, reasonable wear and tear excepted. 3.3. Hold Over. If the RFA remains in possession of the Premises after termination of this Lease, the occupancy shall not be an extension or renewal of the Term. The occupancy shall be a month-to-month tenancy, on terms identical to the terms of this Lease, which may be terminated by either party on thirty (30) days written notice. 4. LEASE PAYMENT. 4.1. Rent. The RFA shall pay to the City the annual rent of One Dollar and No/100 Cents ($1.00) ("Rent"). The first installment shall be due and payable on or before Commencement Date, and subsequent installments shall be due and payable on or before the 1st day of each year thereafter. 5. UTILITIES AND OTHER EXPENSES. 5.1. Utilities. The RFA will be responsible for all utilities serving the Premises. 6. MAINTENANCE AND REPAIR. 6.1. Maintenance and Repair responsibilities shall follow the requirements of Section 5.2 of the ILA. Fire Station 52 Lease Agreement Page 2 of 10 7. TENANT IMPROVEMENTS. 7.1. Construction. Prior to any construction, alteration, replacement, removal, or major repair of any improvements on the Premises, the RFA shall submit to the City plans and specifications that describe the proposed activity. Construction shall not commence until the City has approved the plans and specifications in writing. The City shall have thirty (30) days in which to review the proposed plans and specifications. The plans and specifications shall be deemed approved and the requirement for the City's written consent shall be treated as waived, unless the City notifies the RFA otherwise within the thirty (30) days. Upon completion of construction, the RFA shall promptly provide the City with as -built plans and specifications. The City's consent and approval shall not be required for any routine maintenance or repair of improvements made by the RFA pursuant to its obligation to maintain the Premises in good order and repair that does not result in the construction, alteration, replacement, removal, or major repair of any improvements on the Premises. The provisions of this section do not obviate any permit requirements that may apply to the proposed activity. 7.2. Ownership of Improvements. On the termination of the Lease, all RFA -initiated improvements shall become the property of the City without payment by the City. 8. INDEMNIFICATION. 8.1. The RFA agrees that it will protect, save, defend, hold harmless and indemnify the City, its officials, employees, volunteers and agents from any and all demands, claims, suits, actions, judgments, or liabilities for injury or death of any person, or for loss or damage to property, arising as a result of accidents, injuries, or other occurrences on the Premises or on City's Property, occasioned by either the negligent or willful conduct of the RFA, its agents or any person or entity holding under the RFA or any person or entity on the Premises or on the City's property as a result of RFA's activity, regardless of who the injured party may be. Notwithstanding the foregoing, the City shall, to the extent permitted by law, indemnify and hold the RFA harmless for any and all demands, claims, judgments, or liability for loss or damage arising from the City's negligent, reckless and/or willful acts (including those of the City's employees, officials, or agents). It is further specifically and expressly understood that the indemnification provided herein constitutes the RFA's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated and agreed to by the RFA and City. The provisions of this section shall survive the expiration or termination of this Lease. 8.2. The RFA shall indemnify and hold City harmless from any and all claims, demands, judgments, orders, or damages resulting from hazardous substances on the Premises caused in whole or in part by the activity of the RFA, its agents, subtenants, or any other person or entity on the Premises during any period of time that the RFA has occupied all or a portion of the Premises during the term of the Lease. The City shall, to the extent permitted by law, indemnify and hold RFA harmless from any and all Fire Station 52 Lease Agreement Page 3 of 10 35 36 claims, demands, judgments, orders or damages resulting from hazardous substances on the Property caused by the City. 8.3. "Hazardous Substance" means any substance which now or in the future becomes regulated or defined as Hazardous Substance or Hazardous Waste under any federal, state, or local statute, ordinance, rule, regulation, or other law relating to human health, environmental protection, contamination or cleanup, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C. 9601 et seq., and Washington's Model Toxics Control Act ("MTCA"), RCW 70.105D.010 et seq. 8.4. The provisions of this Section 8 shall survive the expiration or termination of this Lease. 9. ASSIGNMENT AND SUBLETTING. 9.1. The RFA shall not sell, convey, mortgage, assign, pledge, sublet, or otherwise transfer or encumber all or any part of the RFA's interest in this Lease or the Premises without the City's prior written consent which may not be unreasonably withheld by the City. In the event of such consent, each permitted transferee shall assume all obligations under this Lease. No assignment, sublet, or transfer shall release, discharge, or otherwise affect the liability of RFA. The consolidation of the RFA with another entity or the formation of a regional fire authority in which the RFA is a participating jurisdiction shall not constitute an assignment under this Lease. The City's consent shall not be required for a sublease of the premises to another governmental entity providing services that directly support and benefit the operation of the regional RFA. 10. INSURANCE. 10.1. During the term of this Lease and any extension thereof, the City shall maintain an insurance policy on the Premises in the amount of the replacement cost, for damage from fire; earthquake; and other perils. Said insurance policy shall also insure the replacement value of the equipment owned by the City pursuant to this Lease. The proceeds on a claim against said insurance policy for damage shall be used to repair damage to the building so insured and to repair or replace any damaged personal property provided by the City. 10.2. The RFA shall be responsible for maintaining its own fire and hazard insurance on RFA -owned personal property and leasehold improvements placed within and on the Premises by the RFA. 10.3. The RFA shall procure and maintain for the duration of the Lease, insurance against claims for injuries to persons or damage to property which may arise from or in connection with this Lease by the RFA, its agents, representatives, employees or subcontractors. 11. DAMAGE OR DESTRUCTION. The Parties recognize that some or all use of the Property or Premises may be interfered with or prevented because of fire, earthquake, flood, storm, landslide, act of war, vandalism, theft or other extraordinary casualty ("Casualty"). Fire Station 52 Lease Agreement Page 4 of 10 11.1. Material Damage. If the Premises are damaged or destroyed by fire or any Casualty which cannot, despite diligent, good faith efforts be repaired or restored within one hundred twenty (120) days following the date on which such damage occurs, then RFA may elect to terminate the Lease effective as of the date of such damage or destruction. Within thirty (30) days after the date of such damage, the parties shall determine how long the repair and restoration will take. After that determination has been made, RFA shall have a period of thirty (30) days to terminate the Lease by giving written notice to the City. 11.2. Repair after Damage. If the RFA does not give notice of the RFA's election to terminate as provided in subsection 11.1, then the City shall, subject to the provisions of this Section, immediately commence and diligently pursue the completion of the repair of such damage so that the Premises are restored to a condition of similar quality, character and utility for the RFA's purposes. Notwithstanding anything contained herein to the contrary, if the Premises are not repaired and restored within one hundred twenty (120) days from the date of the damage, the RFA may cancel the Lease at any time before the City completes the repairs and delivers the restored Premises to the RFA. If the RFA does not so terminate, the City shall continue to restore the Premises. The RFA shall have no claim against the City for any direct, incidental or consequential damages arising from the City's failure to commence or complete any repairs to the Premises. In no event shall the City be obligated to spend more money on the repair than is provided by insurance proceeds in subsection 11.1. 11.3. Uninsured Damage. If damage or destruction is caused by a peril not required to be insured against hereunder and for which insurance proceeds are not available, either the City or RFA may terminate this Lease by thirty (30) days written notice to the other of its election to do so, and the Lease shall be deemed to have terminated as of such date unless the other party agrees in writing to pay for such repairs or restoration. 12. DEFAULT AND REMEDIES. 12.1. Acts Constituting Default. The RFA shall be in default of this Lease on the occurrence of any of the following: (a) Failure to pay expenses when due; (b) Failure to comply with any law, regulation, policy, or order of any lawful governmental authority; (c) Failure to comply with any other provision of this Lease; (d) Failure to cure a default pursuant to Section 12.2 below; (e) Proceedings are commenced by or against the RFA under any bankruptcy act or for the appointment of a trustee or receiver of RFAs' Premises; or (0 The RFA vacates or abandons the Premises. 12.2. Failure to Cure. A default shall become an event of default ("Event of Default") if the RFA fails to cure, or take positive steps to cure, the default within 30 days after the City provides the RFA with written notice of default, which specifies the nature of the default. 12.3. City's Remedies Upon Default. Upon an Event of Default, the City may terminate this Lease and remove the RFA by summary proceedings or otherwise. The City's Fire Station 52 Lease Agreement Page 5 of 10 37 38 reentry or repossession of the Property under this subsection shall not be construed as an election to terminate this Lease or cause a forfeiture of rents or other charges to be paid during the balance of the Term, unless the City gives a written notice of termination to the RFA or termination is decreed by legal proceedings. 13. ENTRY BY THE CITY. The City shall have the right to enter the Premises at any reasonable hour to inspect for compliance with the terms of this Lease upon twenty-four (24) hours' notice. The City and/or its agents shall comply with all of the RFA's work safety rules and restrictions. 14. NOTICE. Any notices required or permitted under this Lease may be personally delivered, delivered by certified mail, return receipt requested, to the addresses listed on the signature page or to such other places as the parties may direct in writing from time to time. A notice shall be deemed given and delivered upon personal delivery or three (3) days after being mailed as set forth above, whichever is applicable. 15. MISCELLANEOUS. 15.1. Authority. The City and the RFA represent that each person signing on this Lease on its behalf is authorized to do so. 15.2. Successors and Assigns. This Lease shall be binding upon and inure to the benefit of the parties, their successors and assigns. 15.3. Headings. The headings used in this Lease are for convenience only and in no way define, limit, or extend the scope of this Lease or the intent of any provision. 15.4. Waiver. The waiver by the City of any breach or default of any term, covenant, or condition of this Lease shall not be deemed to be a waiver of such term, covenant, or condition; of any subsequent breach or default of the same; or of any other term, covenant, or condition of this Lease. The City's acceptance of a rental payment shall not be construed to be a waiver of any preceding or existing breach other than the failure to pay the particular rental payment that was accepted. 15.5. Cumulative Remedies. The rights and remedies of the City under this Lease are cumulative and in addition to all other rights and remedies afforded to the City by law or equity or otherwise. 15.6. Time is of the Essence. TIME IS OF THE ESSENCE as to each and every provision of this Lease. 15.7. Invalidity. If any provision of this Lease shall prove to be invalid, void, or illegal, it shall in no way affect, impair, or invalidate any other provision of this Lease. 15.8. Applicable Law and Venue. This Lease shall be interpreted and construed in accordance with the laws of the State of Washington. Any reference to a statute shall mean that statute as presently enacted or hereafter amended or superseded. Venue for any action arising out of or in connection with this Lease shall be in the Superior Court for King County, Washington. 15.9. Modification. Any modification of this Lease must be in writing and signed by the parties. The City shall not be bound by any oral representations or statements. 15.10. Quiet Enjoyment. The City covenants and agrees that the RFA, upon performing the terms and conditions of the Lease, may peacefully hold and enjoy the Premises during said term without any interruption by the City, its successors or assigns, or any person or company lawfully claiming by or through it. Fire Station 52 Lease Agreement Page 6 of 10 15.11. Recording of Short Form Lease. Neither the City nor the RFA may record this Lease without the other's prior approval, but the Parties will at any time at the request of either party promptly execute duplicate originals of an instrument, in recordable form, which will constitute a short form of this lease, setting forth a description of the Premises, the terms of this Lease and other provisions hereof, except the rental and other provisions as either party may request, which may be recorded. 15.12. Duplicate Originals. This Lease Agreement may be executed in duplicate originals. THIS AGREEMENT requires the signature of all parties and is executed as of the date of the last signature below and is effective as of January 1, 2023. PUGET SOUND REGIONAL FIRE CITY OF TUKWILA AUTHORITY By: By: Chief DATE: APPROVED AS TO FORM: Mayor DATE: ATTEST: City Clerk PSRFA Attorney APPROVED AS TO FORM: NOTICES TO BE SENT TO: Puget Sound Regional Fire Authority Administration 24611 116th Avenue SE Kent, WA 98030 City Attorney NOTICES TO BE SENT TO: City of Tukwila Mayor's Office 6200 Southcenter Blvd. Tukwila WA 98188 Fire Station 52 Lease Agreement Page 7 of 10 39 40 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 2022, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the foregoing instrument as , is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she is authorized to execute the instrument on behalf of Puget Sound Regional Fire Authority as its , and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. - Notary Seal Must Appear Within This Box IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington Residing at , Washington My Appointment Expires Fire Station 52 Lease Agreement Page 8 of 10 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 2022, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the foregoing instrument as , is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she is authorized to execute the instrument on behalf of the City of Tukwila as its Mayor, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. Notary Seal Must Appear Within This Box IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington Residing at , Washington My Appointment Expires Fire Station 52 Lease Agreement Page 9 of 10 41 EXHIBIT A TUKWILA STATION 52 LEASE ABBREVIATED LEGAL DESCRIPTION INTERURBAN ADD TO SEATTLE LOT 17 LESS PORTION LY NLY OF FOLLOWING DESCRIBED LINE - BEGIN SW CORNER OF LOT 17 TH NORTH 210 FEET TH N 89-47-00 E TO WLY MARGIN OF 65 TH AVE S LESS POR DAF - POR OF LOT 17 DAF - BAAP OF C/L OF RENTON-THREE TREE PT NO 2649 & W LN OF SEC 23-23-04 SD PT BEING ENG STA 135+29.92 FR WCH SW COR OF SD SEC 23 BEARS S 0-11-42 E 2044.06 FT TH S 84- 51-48 E 1647.24 FT TH ON A CRV TO RGT HAVING A RAD OF 955.37 FT 360 FT TH S 63- 15-48 E 359.18 FT TH ON A CRV TO LFT RAD OF 5729.65 FT 370 FT TH S 66-57-48 E 1162.53 FT TH ON A CRV TO LFT HAVING A RAD OF 716.34 FT 442.40 FT TH N 77-38-42 E 201.68 FT TH LEAVING SD C/L OF SD RD & RUNNING N 00-14-00 E 272.03 FT TH S 00- 14-00 W 87.94 FT M/L TO NWLY MGN OF VAC MACADAM RD TH S 49-00-00 W ALG SD NWLY MGN 106.38 FT TH N 00-14-00 E 312.55 FT M/L TO S LN OF LOT 17 IN SD PLAT & TPOB TH CONT N 00-14-00 E 150 FT TH S 88-24-47 E PLW NLY LN OF SD LOT 17 170 FT M/L TO SWLY MGN OF 65TH AVE S TH SELY ALG SD MGN TO SE COR OF SD LOT 17 TH N 89-09-00 W ALG S LN OF LOT 17 TO TPOB LESS POR LYINING WITHIN M. W. ADD LESS RD Also known as King County Parcel No. 3597000320 located at 15447 65th Avenue S., Tukwila, Washington 98188. Fire Station 52 Lease Agreement Page 10 of 10 42 LEASE AGREEMENT BETWEEN THE CITY TUKWILA AND PUGET SOUND REGIONAL FIRE AUTHORITY FIRE STATION 53 THIS LEASE AGREEMENT (hereinafter "Lease") is between the CITY OF TUKWILA, a municipal corporation of the State of Washington ("City"), and PUGET SOUND REGIONAL FIRE AUTHORITY, a Washington municipal corporation ("RFA") (collectively referred to as "the Parties"). RECITALS 1. The City's legislative body and the RFA's governing board executed an Interlocal Agreement for Consolidation of Fire Services to allow the RFA to provide fire protection, fire suppression, fire marshal services, emergency medical services, and nonemergency medical services to the City ("the ILA"). 2. The City owns real property legally described in Exhibit A attached and incorporated herein and located at 4202 S. 115th Street, Tukwila, Washington 98168 (the "Property") (Parcel #3351400825). A portion of the Property has been used by the City as a fire station and that portion will now be used by the RFA under the terms of this Lease; and AGREEMENT NOW, THEREFORE, the City and RFA agree as follows: 1. PREMISES. As -Is. The City is providing the Premises in "as -is" condition for the RFA's use. The City makes no representation regarding the condition of the Premises or improvements located on the same. 2. USE. 2.1. Permitted Use. The RFA shall use the Premises for a fire station, and administration purposes (the "Permitted Use") and for no other purpose unrelated to the management and delivery of fire protection and emergency medical services. 2.2. Liens and Encumbrances. The RFA shall keep the Premises free and clear of any liens and encumbrances arising out of or relating to its use or occupancy of the Premises. Fire Station 53 Lease Agreement Page 1 of 10 43 3. TERM. 3.1. Term Defined. The term of this Lease shall coincide with the term set forth in Section 2.1 of the Parties' ILA, which shall commence on January 1, 2023 ("Commencement Date"). 3.2. End of Term. Upon the expiration or termination of the Term, as applicable, the RFA shall surrender the Premises to the City in the same or better condition as on the Commencement Date, reasonable wear and tear excepted. 3.3. Hold Over. If the RFA remains in possession of the Premises after termination of this Lease, the occupancy shall not be an extension or renewal of the Term. The occupancy shall be a month-to-month tenancy, on terms identical to the terms of this Lease, which may be terminated by either party on thirty (30) days written notice. 4. LEASE PAYMENT. 4.1. Rent. The RFA shall pay to the City the annual rent of One Dollar and No/100 Cents ($1.00) ("Rent"). The first installment shall be due and payable on or before Commencement Date, and subsequent installments shall be due and payable on or before the 1st day of each year thereafter. 5. UTILITIES AND OTHER EXPENSES. 5.1. Utilities. The RFA will be responsible for all utilities serving the Premises. 6. MAINTENANCE AND REPAIR. 6.1. Maintenance and Repair responsibilities shall follow the requirements of Section 5.2 of the ILA. 7. TENANT IMPROVEMENTS. 7.1. Construction. Prior to any construction, alteration, replacement, removal, or major repair of any improvements on the Premises, the RFA shall submit to the City plans and specifications that describe the proposed activity. Construction shall not commence until the City has approved the plans and specifications in writing. The City shall have thirty (30) days in which to review the proposed plans and specifications. The plans and specifications shall be deemed approved and the requirement for the City's written consent shall be treated as waived, unless the City notifies the RFA otherwise within the thirty (30) days. Upon completion of construction, the RFA shall promptly provide the City with as -built plans and specifications. The City's consent and approval shall not be required for any routine maintenance or repair of improvements made by the RFA pursuant to its obligation to maintain the Premises in good order and repair that does not result in the construction, alteration, replacement, removal, or major repair of any improvements on the Premises. The provisions of this section do not obviate any permit requirements that may apply to the proposed activity. Fire Station 53 Lease Agreement Page 2 of 10 44 7.2. Ownership of Improvements. On the termination of the Lease, all RFA -initiated improvements shall become the property of the City without payment by the City. 8. INDEMNIFICATION. 8.1. The RFA agrees that it will protect, save, defend, hold harmless and indemnify the City, its officials, employees, volunteers and agents from any and all demands, claims, suits, actions, judgments, or liabilities for injury or death of any person, or for loss or damage to property, arising as a result of accidents, injuries, or other occurrences on the Premises or on City's Property, occasioned by either the negligent or willful conduct of the RFA, its agents or any person or entity holding under the RFA or any person or entity on the Premises or on the City's property as a result of RFA's activity, regardless of who the injured party may be. Notwithstanding the foregoing, the City shall, to the extent permitted by law, indemnify and hold the RFA harmless for any and all demands, claims, judgments, or liability for loss or damage arising from the City's negligent, reckless and/or willful acts (including those of the City's employees, officials, or agents). It is further specifically and expressly understood that the indemnification provided herein constitutes the RFA's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated and agreed to by the RFA and City. The provisions of this section shall survive the expiration or termination of this Lease. 8.2. The RFA shall indemnify and hold City harmless from any and all claims, demands, judgments, orders, or damages resulting from hazardous substances on the Premises caused in whole or in part by the activity of the RFA, its agents, subtenants, or any other person or entity on the Premises during any period of time that the RFA has occupied all or a portion of the Premises during the term of the Lease. The City shall, to the extent permitted by law, indemnify and hold RFA harmless from any and all claims, demands, judgments, orders or damages resulting from hazardous substances on the Property caused by the City. 8.3. "Hazardous Substance" means any substance which now or in the future becomes regulated or defined as Hazardous Substance or Hazardous Waste under any federal, state, or local statute, ordinance, rule, regulation, or other law relating to human health, environmental protection, contamination or cleanup, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C. 9601 et seq., and Washington's Model Toxics Control Act ("MTCA"), RCW 70.105D.010 et seq. 8.4. The provisions of this Section 8 shall survive the expiration or termination of this Lease. 9. ASSIGNMENT AND SUBLETTING. 9.1. The RFA shall not sell, convey, mortgage, assign, pledge, sublet, or otherwise transfer or encumber all or any part of the RFA's interest in this Lease or the Premises without Fire Station 53 Lease Agreement Page 3 of 10 45 the City's prior written consent which may not be unreasonably withheld by the City. In the event of such consent, each permitted transferee shall assume all obligations under this Lease. No assignment, sublet, or transfer shall release, discharge, or otherwise affect the liability of RFA. The consolidation of the RFA with another entity or the formation of a regional fire authority in which the RFA is a participating jurisdiction shall not constitute an assignment under this Lease. The City's consent shall not be required for a sublease of the premises to another governmental entity providing services that directly support and benefit the operation of the regional RFA. 10. INSURANCE. 10.1. During the term of this Lease and any extension thereof, the City shall maintain an insurance policy on the Premises in the amount of the replacement cost, for damage from fire; earthquake; and other perils. Said insurance policy shall also insure the replacement value of the equipment owned by the City pursuant to this Lease. The proceeds on a claim against said insurance policy for damage shall be used to repair damage to the building so insured and to repair or replace any damaged personal property provided by the City. 10.2. The RFA shall be responsible for maintaining its own fire and hazard insurance on RFA -owned personal property and leasehold improvements placed within and on the Premises by the RFA. 10.3. The RFA shall procure and maintain for the duration of the Lease, insurance against claims for injuries to persons or damage to property which may arise from or in connection with this Lease by the RFA, its agents, representatives, employees or subcontractors. 11. DAMAGE OR DESTRUCTION. The Parties recognize that some or all use of the Property or Premises may be interfered with or prevented because of fire, earthquake, flood, storm, landslide, act of war, vandalism, theft or other extraordinary casualty ("Casualty"). 11.1. Material Damage. If the Premises are damaged or destroyed by fire or any Casualty which cannot, despite diligent, good faith efforts be repaired or restored within one hundred twenty (120) days following the date on which such damage occurs, then RFA may elect to terminate the Lease effective as of the date of such damage or destruction. Within thirty (30) days after the date of such damage, the parties shall determine how long the repair and restoration will take. After that determination has been made, RFA shall have a period of thirty (30) days to terminate the Lease by giving written notice to the City. 11.2. Repair after Damage. If the RFA does not give notice of the RFA's election to terminate as provided in subsection 11.1, then the City shall, subject to the provisions of this Section, immediately commence and diligently pursue the completion of the repair of such damage so that the Premises are restored to a condition of similar quality, character and utility for the RFA's purposes. Notwithstanding anything contained herein to the contrary, if the Premises are not repaired and restored within one hundred twenty (120) days from the date of the damage, the RFA may cancel the Lease at any time before the City completes the repairs and delivers the restored Premises to the Fire Station 53 Lease Agreement Page 4 of 10 46 RFA. If the RFA does not so terminate, the City shall continue to restore the Premises. The RFA shall have no claim against the City for any direct, incidental or consequential damages arising from the City's failure to commence or complete any repairs to the Premises. In no event shall the City be obligated to spend more money on the repair than is provided by insurance proceeds in subsection 11.1. 11.3. Uninsured Damage. If damage or destruction is caused by a peril not required to be insured against hereunder and for which insurance proceeds are not available, either the City or RFA may terminate this Lease by thirty (30) days written notice to the other of its election to do so, and the Lease shall be deemed to have terminated as of such date unless the other party agrees in writing to pay for such repairs or restoration. 12. DEFAULT AND REMEDIES. 12.1. Acts Constituting Default. The RFA shall be in default of this Lease on the occurrence of any of the following: (a) Failure to pay expenses when due; (b) Failure to comply with any law, regulation, policy, or order of any lawful governmental authority; (c) Failure to comply with any other provision of this Lease; (d) Failure to cure a default pursuant to Section 12.2 below; (e) Proceedings are commenced by or against the RFA under any bankruptcy act or for the appointment of a trustee or receiver of RFAs' Premises; or (f) The RFA vacates or abandons the Premises. 12.2. Failure to Cure. A default shall become an event of default ("Event of Default") if the RFA fails to cure, or take positive steps to cure, the default within 30 days after the City provides the RFA with written notice of default, which specifies the nature of the default. 12.3. City's Remedies Upon Default. Upon an Event of Default, the City may terminate this Lease and remove the RFA by summary proceedings or otherwise. The City's reentry or repossession of the Property under this subsection shall not be construed as an election to terminate this Lease or cause a forfeiture of rents or other charges to be paid during the balance of the Term, unless the City gives a written notice of termination to the RFA or termination is decreed by legal proceedings. 13. ENTRY BY THE CITY. The City shall have the right to enter the Premises at any reasonable hour to inspect for compliance with the terms of this Lease upon twenty-four (24) hours' notice. The City and/or its agents shall comply with all of the RFA's work safety rules and restrictions. 14. NOTICE. Any notices required or permitted under this Lease may be personally delivered, delivered by certified mail, return receipt requested, to the addresses listed on the signature page or to such other places as the parties may direct in writing from time to time. A notice shall be deemed given and delivered upon personal delivery or three (3) days after being mailed as set forth above, whichever is applicable. Fire Station 53 Lease Agreement Page 5 of 10 47 15. MISCELLANEOUS. 15.1. Authority. The City and the RFA represent that each person signing on this Lease on its behalf is authorized to do so. 15.2. Successors and Assigns. This Lease shall be binding upon and inure to the benefit of the parties, their successors and assigns. 15.3. Headings. The headings used in this Lease are for convenience only and in no way define, limit, or extend the scope of this Lease or the intent of any provision. 15.4. Waiver. The waiver by the City of any breach or default of any term, covenant, or condition of this Lease shall not be deemed to be a waiver of such term, covenant, or condition; of any subsequent breach or default of the same; or of any other term, covenant, or condition of this Lease. The City's acceptance of a rental payment shall not be construed to be a waiver of any preceding or existing breach other than the failure to pay the particular rental payment that was accepted. 15.5. Cumulative Remedies. The rights and remedies of the City under this Lease are cumulative and in addition to all other rights and remedies afforded to the City by law or equity or otherwise. 15.6. Time is of the Essence. TIME IS OF THE ESSENCE as to each and every provision of this Lease. 15.7. Invalidity. If any provision of this Lease shall prove to be invalid, void, or illegal, it shall in no way affect, impair, or invalidate any other provision of this Lease. 15.8. Applicable Law and Venue. This Lease shall be interpreted and construed in accordance with the laws of the State of Washington. Any reference to a statute shall mean that statute as presently enacted or hereafter amended or superseded. Venue for any action arising out of or in connection with this Lease shall be in the Superior Court for King County, Washington. 15.9. Modification. Any modification of this Lease must be in writing and signed by the parties. The City shall not be bound by any oral representations or statements. 15.10. Quiet Enjoyment. The City covenants and agrees that the RFA, upon performing the terms and conditions of the Lease, may peacefully hold and enjoy the Premises during said term without any interruption by the City, its successors or assigns, or any person or company lawfully claiming by or through it. 15.11. Recording of Short Form Lease. Neither the City nor the RFA may record this Lease without the other's prior approval, but the Parties will at any time at the request of either party promptly execute duplicate originals of an instrument, in recordable form, which will constitute a short form of this lease, setting forth a description of the Premises, the terms of this Lease and other provisions hereof, except the rental and other provisions as either party may request, which may be recorded. 15.12. Duplicate Originals. This Lease Agreement may be executed in duplicate originals. Fire Station 53 Lease Agreement Page 6 of 10 48 THIS AGREEMENT requires the signature of all parties and is executed as of the date of the last signature below and is effective as of January 1, 2023. PUGET SOUND REGIONAL FIRE CITY OF TUKWILA AUTHORITY By: By: Chief DATE: APPROVED AS TO FORM: PSRFA Attorney Mayor DATE: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney NOTICES TO BE SENT TO: NOTICES TO BE SENT TO: Puget Sound Regional Fire Authority City of Tukwila Mayor's Office Administration 6200 Southcenter Blvd. 24611 116th Avenue SE Tukwila WA 98188 Kent, WA 98030 Fire Station 53 Lease Agreement Page 7 of 10 49 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 2022, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the foregoing instrument as , is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she is authorized to execute the instrument on behalf of Puget Sound Regional Fire Authority as its , and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. - Notary Seal Must Appear Within This Box IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington Residing at , Washington My Appointment Expires Fire Station 53 Lease Agreement Page 8 of 10 50 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 2022, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the foregoing instrument as , is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she is authorized to execute the instrument on behalf of the City of Tukwila as its Mayor, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. Notary Seal Must Appear Within This Box IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington Residing at , Washington My Appointment Expires Fire Station 53 Lease Agreement Page 9 of 10 51 EXHIBIT A TUKWILA STATION 53 LEASE ABBREVIATED LEGAL DESCRIPTION HILLMANS CD MEADOW GARDENS #3 LOTS 1 THRU 15 BLOCK 26 TGW LOTS 1 THRU 12 BLOCK 27 TGW LOTS 1 THRU 15 BLOCK 28 TGW UNIMPROVED AND VACATED SOUTH 114TH STREET AND SOUTH 115TH STREET - TUKWILA ORDINANCE NO 1750 EFFECTIVE DATE AUGUST 20, 1995 Also known as King County Parcel No. 3351400825 located at 4202 S. 115th Street, Tukwila, Washington 98168. Fire Station 53 Lease Agreement Page 10 of 10 52 LEASE AGREEMENT BETWEEN THE CITY TUKWILA AND PUGET SOUND REGIONAL FIRE AUTHORITY FIRE STATION 54 THIS LEASE AGREEMENT (hereinafter "Lease") is between the CITY OF TUKWILA, a municipal corporation of the State of Washington ("City"), and PUGET SOUND REGIONAL FIRE AUTHORITY, a Washington municipal corporation ("RFA") (collectively referred to as "the Parties"). RECITALS 1. The City's legislative body and the RFA's governing board executed an Interlocal Agreement for Consolidation of Fire Services to allow the RFA to provide fire protection, fire suppression, fire marshal services, emergency medical services, and nonemergency medical services to the City ("the ILA"). 2. The City owns real property legally described in Exhibit A attached and incorporated herein and located at 4237 S. 144th Street, Tukwila, Washington 98168 (the "Property") (Parcel #0040000365). A portion of the Property has been used by the City as a fire station and that portion will now be used by the RFA under the terms of this Lease; and AGREEMENT NOW, THEREFORE, the City and RFA agree as follows: 1. PREMISES. As -Is. The City is providing the Premises in "as -is" condition for the RFA's use. The City makes no representation regarding the condition of the Premises or improvements located on the same. 2. USE. 2.1. Permitted Use. The RFA shall use the Premises for a fire station, and administration purposes (the "Permitted Use") and for no other purpose unrelated to the management and delivery of fire protection and emergency medical services. 2.2. Liens and Encumbrances. The RFA shall keep the Premises free and clear of any liens and encumbrances arising out of or relating to its use or occupancy of the Premises. Fire Station 54 Lease Agreement Page 1 of 10 53 3. TERM. 3.1. Term Defined. The term of this Lease shall coincide with the term set forth in Section 2.1 of the Parties' ILA, which shall commence on January 1, 2023 ("Commencement Date"). 3.2. End of Term. Upon the expiration or termination of the Term, as applicable, the RFA shall surrender the Premises to the City in the same or better condition as on the Commencement Date, reasonable wear and tear excepted. 3.3. Hold Over. If the RFA remains in possession of the Premises after termination of this Lease, the occupancy shall not be an extension or renewal of the Term. The occupancy shall be a month-to-month tenancy, on terms identical to the terms of this Lease, which may be terminated by either party on thirty (30) days written notice. 4. LEASE PAYMENT. 4.1. Rent. The RFA shall pay to the City the annual rent of One Dollar and No/100 Cents ($1.00) ("Rent"). The first installment shall be due and payable on or before Commencement Date, and subsequent installments shall be due and payable on or before the 1st day of each year thereafter. 5. UTILITIES AND OTHER EXPENSES. 5.1. Utilities. The RFA will be responsible for all utilities serving the Premises. 6. MAINTENANCE AND REPAIR. 6.1. Maintenance. Maintenance and Repair responsibilities shall follow the requirements of Section 5.2 of the ILA. 7. TENANT IMPROVEMENTS. 7.1. Construction. Prior to any construction, alteration, replacement, removal, or major repair of any improvements on the Premises, the RFA shall submit to the City plans and specifications that describe the proposed activity. Construction shall not commence until the City has approved the plans and specifications in writing. The City shall have thirty (30) days in which to review the proposed plans and specifications. The plans and specifications shall be deemed approved and the requirement for the City's written consent shall be treated as waived, unless the City notifies the RFA otherwise within the thirty (30) days. Upon completion of construction, the RFA shall promptly provide the City with as -built plans and specifications. The City's consent and approval shall not be required for any routine maintenance or repair of improvements made by the RFA pursuant to its obligation to maintain the Premises in good order and repair that does not result in the construction, alteration, replacement, removal, or major repair of any improvements on the Premises. The provisions of this section do not obviate any permit requirements that may apply to the proposed activity. Fire Station 54 Lease Agreement Page 2 of 10 54 7.2. Ownership of Improvements. On the termination of the Lease, all RFA -initiated improvements shall become the property of the City without payment by the City. 8. INDEMNIFICATION. 8.1. The RFA agrees that it will protect, save, defend, hold harmless and indemnify the City, its officials, employees, volunteers and agents from any and all demands, claims, suits, actions, judgments, or liabilities for injury or death of any person, or for loss or damage to property, arising as a result of accidents, injuries, or other occurrences on the Premises or on City's Property, occasioned by either the negligent or willful conduct of the RFA, its agents or any person or entity holding under the RFA or any person or entity on the Premises or on the City's property as a result of RFA's activity, regardless of who the injured party may be. Notwithstanding the foregoing, the City shall, to the extent permitted by law, indemnify and hold the RFA harmless for any and all demands, claims, judgments, or liability for loss or damage arising from the City's negligent, reckless and/or willful acts (including those of the City's employees, officials, or agents). It is further specifically and expressly understood that the indemnification provided herein constitutes the RFA's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated and agreed to by the RFA and City. The provisions of this section shall survive the expiration or termination of this Lease. 8.2. The RFA shall indemnify and hold City harmless from any and all claims, demands, judgments, orders, or damages resulting from hazardous substances on the Premises caused in whole or in part by the activity of the RFA, its agents, subtenants, or any other person or entity on the Premises during any period of time that the RFA has occupied all or a portion of the Premises during the term of the Lease. The City shall, to the extent permitted by law, indemnify and hold RFA harmless from any and all claims, demands, judgments, orders or damages resulting from hazardous substances on the Property caused by the City. 8.3. "Hazardous Substance" means any substance which now or in the future becomes regulated or defined as Hazardous Substance or Hazardous Waste under any federal, state, or local statute, ordinance, rule, regulation, or other law relating to human health, environmental protection, contamination or cleanup, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C. 9601 et seq., and Washington's Model Toxics Control Act ("MTCA"), RCW 70.105D.010 et seq. 8.4. The provisions of this Section 8 shall survive the expiration or termination of this Lease. 9. ASSIGNMENT AND SUBLETTING. 9.1. The RFA shall not sell, convey, mortgage, assign, pledge, sublet, or otherwise transfer or encumber all or any part of the RFA's interest in this Lease or the Premises without the City's prior written consent which may not be unreasonably withheld by the City. In the event of such consent, each permitted transferee shall assume all obligations Fire Station 54 Lease Agreement Page 3 of 10 55 under this Lease. No assignment, sublet, or transfer shall release, discharge, or otherwise affect the liability of RFA. The consolidation of the RFA with another entity or the formation of a regional fire authority in which the RFA is a participating jurisdiction shall not constitute an assignment under this Lease. The City's consent shall not be required for a sublease of the premises to another governmental entity providing services that directly support and benefit the operation of the regional RFA. 10. INSURANCE. 10.1. During the term of this Lease and any extension thereof, the City shall maintain an insurance policy on the Premises in the amount of the replacement cost, for damage from fire; earthquake; and other perils. Said insurance policy shall also insure the replacement value of the equipment owned by the City pursuant to this Lease. The proceeds on a claim against said insurance policy for damage shall be used to repair damage to the building so insured and to repair or replace any damaged personal property provided by the City. 10.2. The RFA shall be responsible for maintaining its own fire and hazard insurance on RFA -owned personal property and leasehold improvements placed within and on the Premises by the RFA. 10.3. The RFA shall procure and maintain for the duration of the Lease, insurance against claims for injuries to persons or damage to property which may arise from or in connection with this Lease by the RFA, its agents, representatives, employees or subcontractors. 11. DAMAGE OR DESTRUCTION. The Parties recognize that some or all use of the Property or Premises may be interfered with or prevented because of fire, earthquake, flood, storm, landslide, act of war, vandalism, theft or other extraordinary casualty ("Casualty"). 11.1. Material Damage. If the Premises are damaged or destroyed by fire or any Casualty which cannot, despite diligent, good faith efforts be repaired or restored within one hundred twenty (120) days following the date on which such damage occurs, then RFA may elect to terminate the Lease effective as of the date of such damage or destruction. Within thirty (30) days after the date of such damage, the parties shall determine how long the repair and restoration will take. After that determination has been made, RFA shall have a period of thirty (30) days to terminate the Lease by giving written notice to the City. 11.2. Repair after Damage. If the RFA does not give notice of the RFA's election to terminate as provided in subsection 11.1, then the City shall, subject to the provisions of this Section, immediately commence and diligently pursue the completion of the repair of such damage so that the Premises are restored to a condition of similar quality, character and utility for the RFA's purposes. Notwithstanding anything contained herein to the contrary, if the Premises are not repaired and restored within one hundred twenty (120) days from the date of the damage, the RFA may cancel the Lease at any time before the City completes the repairs and delivers the restored Premises to the RFA. If the RFA does not so terminate, the City shall continue to restore the Premises. The RFA shall have no claim against the City for any direct, incidental or consequential Fire Station 54 Lease Agreement Page 4 of 10 56 damages arising from the City's failure to commence or complete any repairs to the Premises. In no event shall the City be obligated to spend more money on the repair than is provided by insurance proceeds in subsection 11.1. 11.3. Uninsured Damage. If damage or destruction is caused by a peril not required to be insured against hereunder and for which insurance proceeds are not available, either the City or RFA may terminate this Lease by thirty (30) days written notice to the other of its election to do so, and the Lease shall be deemed to have terminated as of such date unless the other party agrees in writing to pay for such repairs or restoration. 12. DEFAULT AND REMEDIES. 12.1. Acts Constituting Default. The RFA shall be in default of this Lease on the occurrence of any of the following: (a) Failure to pay expenses when due; (b) Failure to comply with any law, regulation, policy, or order of any lawful governmental authority; (c) Failure to comply with any other provision of this Lease; (d) Failure to cure a default pursuant to Section 12.2 below; (e) Proceedings are commenced by or against the RFA under any bankruptcy act or for the appointment of a trustee or receiver of RFAs' Premises; or (f) The RFA vacates or abandons the Premises. 12.2. Failure to Cure. A default shall become an event of default ("Event of Default") if the RFA fails to cure, or take positive steps to cure, the default within 30 days after the City provides the RFA with written notice of default, which specifies the nature of the default. 12.3. City's Remedies Upon Default. Upon an Event of Default, the City may terminate this Lease and remove the RFA by summary proceedings or otherwise. The City's reentry or repossession of the Property under this subsection shall not be construed as an election to terminate this Lease or cause a forfeiture of rents or other charges to be paid during the balance of the Term, unless the City gives a written notice of termination to the RFA or termination is decreed by legal proceedings. 13. ENTRY BY THE CITY. The City shall have the right to enter the Premises at any reasonable hour to inspect for compliance with the terms of this Lease upon twenty-four (24) hours' notice. The City and/or its agents shall comply with all of the RFA's work safety rules and restrictions. 14. NOTICE. Any notices required or permitted under this Lease may be personally delivered, delivered by certified mail, return receipt requested, to the addresses listed on the signature page or to such other places as the parties may direct in writing from time to time. A notice shall be deemed given and delivered upon personal delivery or three (3) days after being mailed as set forth above, whichever is applicable. Fire Station 54 Lease Agreement Page 5 of 10 57 15. MISCELLANEOUS. 15.1. Authority. The City and the RFA represent that each person signing on this Lease on its behalf is authorized to do so. 15.2. Successors and Assigns. This Lease shall be binding upon and inure to the benefit of the parties, their successors and assigns. 15.3. Headings. The headings used in this Lease are for convenience only and in no way define, limit, or extend the scope of this Lease or the intent of any provision. 15.4. Waiver. The waiver by the City of any breach or default of any term, covenant, or condition of this Lease shall not be deemed to be a waiver of such term, covenant, or condition; of any subsequent breach or default of the same; or of any other term, covenant, or condition of this Lease. The City's acceptance of a rental payment shall not be construed to be a waiver of any preceding or existing breach other than the failure to pay the particular rental payment that was accepted. 15.5. Cumulative Remedies. The rights and remedies of the City under this Lease are cumulative and in addition to all other rights and remedies afforded to the City by law or equity or otherwise. 15.6. Time is of the Essence. TIME IS OF THE ESSENCE as to each and every provision of this Lease. 15.7. Invalidity. If any provision of this Lease shall prove to be invalid, void, or illegal, it shall in no way affect, impair, or invalidate any other provision of this Lease. 15.8. Applicable Law and Venue. This Lease shall be interpreted and construed in accordance with the laws of the State of Washington. Any reference to a statute shall mean that statute as presently enacted or hereafter amended or superseded. Venue for any action arising out of or in connection with this Lease shall be in the Superior Court for King County, Washington. 15.9. Modification. Any modification of this Lease must be in writing and signed by the parties. The City shall not be bound by any oral representations or statements. 15.10. Quiet Enjoyment. The City covenants and agrees that the RFA, upon performing the terms and conditions of the Lease, may peacefully hold and enjoy the Premises during said term without any interruption by the City, its successors or assigns, or any person or company lawfully claiming by or through it. 15.11. Recording of Short Form Lease. Neither the City nor the RFA may record this Lease without the other's prior approval, but the Parties will at any time at the request of either party promptly execute duplicate originals of an instrument, in recordable form, which will constitute a short form of this lease, setting forth a description of the Premises, the terms of this Lease and other provisions hereof, except the rental and other provisions as either party may request, which may be recorded. 15.12. Duplicate Originals. This Lease Agreement may be executed in duplicate originals. Fire Station 54 Lease Agreement Page 6 of 10 58 THIS AGREEMENT requires the signature of all parties and is executed as of the date of the last signature below and is effective as of January 1, 2023. PUGET SOUND REGIONAL FIRE CITY OF TUKWILA AUTHORITY By: Chief DATE: APPROVED AS TO FORM: PSRFA Attorney NOTICES TO BE SENT TO: Puget Sound Regional Fire Authority Administration 24611 116th Avenue SE Kent, WA 98030 By: DATE: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney NOTICES TO BE SENT TO: City of Tukwila Mayor's Office 6200 Southcenter Blvd. Tukwila WA 98188 Fire Station 54 Lease Agreement Page 7 of 10 59 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 2022, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the foregoing instrument as , is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she is authorized to execute the instrument on behalf of Puget Sound Regional Fire Authority as its , and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. - Notary Seal Must Appear Within This Box IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington Residing at , Washington My Appointment Expires Fire Station 54 Lease Agreement Page 8 of 10 60 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of , 2022, before me a Notary Public in and for the State of Washington, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the foregoing instrument as , is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she is authorized to execute the instrument on behalf of the City of Tukwila as its Mayor, and such execution to be the free and voluntary act of such party for the uses and purposes mentioned in the foregoing instrument. Notary Seal Must Appear Within This Box IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. NOTARY PUBLIC, in and for the State of Washington Residing at , Washington My Appointment Expires Fire Station 54 Lease Agreement Page 9 of 10 61 EXHIBIT A TUKWILA STATION 54 LEASE ABBREVIATED LEGAL DESCRIPTION ADAMS HOME TRS LESS CO RD Also known as King County Parcel No. 0040000365 located at 4237 S. 144th Street, Tukwila, Washington 98168 Fire Station 54 Lease Agreement Page 10 of 10 62 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 1317 REGARDING THE OFFICE OF FIRE CHIEF THEREBY ELIMINATING TUKWILA MUNICIPAL CODE CHAPTER 2.24, "FIRE CHIEF"; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, Ordinance No. 1317 created the office of Fire Chief; and WHEREAS, the City of Tukwila has entered into an interlocal agreement with Puget Sound Regional Fire Authority for the provision of fire and emergency medical services effective January 1, 2023; and WHEREAS, with the transition of fire services to Puget Sound Regional Fire Authority there will no longer be a Tukwila Fire Chief position; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance No. 1317 is hereby repealed in its entirety, thereby eliminating Tukwila Municipal Code Chapter 2.24, "Fire Chief." Section 2. Corrections by City Clerk or Code Reviser Authorized. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. CC:\Legislative Development\Repealing TMC 2.24 Fire Chief 11-2-22 CT:AY Review and analysis by Andy Youn Page 1 of 2 63 Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City and shall take effect and be in full force January 1, 2023. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: CC:\Legislative Development\Repealing TMC 2.24 Fire Chief 11-2-22 CT:AY Review and analysis by Andy Youn 64 Page 2of2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 2528; REENACTING TUKWILA MUNICIPAL CODE CHAPTER 2.42, "CIVIL SERVICE COMMISSION," TO ELIMINATE REFERENCES TO A CITY FIRE DEPARTMENT; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, Ordinance No. 2528 reenacts Tukwila Municipal Code Chapter 2.42, "Civil Service Commission," which currently pertains to both Police and Fire Department positions; and WHEREAS, the City of Tukwila has entered into an interlocal agreement with Puget Sound Regional Fire Authority for the provision of fire and emergency medical services effective January 1, 2023; and WHEREAS, by contracting for services with the Puget Sound Regional Fire Authority the City of Tukwila will no longer employ fire personnel; and WHEREAS, as of the effective date of this ordinance, the Civil Service Commission will pertain only to classified positions within the Police Department; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance No. 2528 is hereby repealed in its entirety. Section 2. TMC Chapter 2.42 Reenacted. Tukwila Municipal Code (TMC) Chapter 2.42 is hereby reenacted to read as follows: CC:\Legislative Development\Reenact TMC 2.42 Civil Service Commission strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn Page 1 of 8 65 CHAPTER 2.42 CIVIL SERVICE COMMISSION Sections: 2.42.010 Establishment of Commission — Purpose 2.42.020 Membership 2.42.030 Commission Organization — Duties 2.42.040 Meetings 2.42.050 Persons Included — Competitive Examination — Transfers, Discharges and Reinstatements 2.42.060 Qualifications of Applicants 2.42.070 Power to Create Offices, Make Appointments and Fix Salaries Not Infringed 2.42.080 Enforcement by Civil Action — Legal Counsel 2.42.090 Deceptive Practices, False Marks, Etc., Prohibited 2.42.100 Penalty — Jurisdiction 2.42.110 Applicability Section 3. TMC Section 2.42.010 is hereby reenacted to read as follows: 2.42.010 Establishment of Commission — Purpose Pursuant to the authority conferred by RCW /11.08.030 and 41.12.030, the City of Tukwila Civil Service Commission ("Commission") is hereby established. Section 4. TMC Section 2.42.020 is hereby reenacted to read as follows: 2.42.020 Membership A. Qualifications. Members must meet the following requirements: 1. Be a citizen of the United States; 2. Be a resident of the City of Tukwila for three years preceding the appointment; and 3. Be registered to vote in King County. B. Number of Members. The Commission shall be comprised of three members that meet the requirements listed in TMC Section 2.42.020.A, "Qualifications." C. Appointment Process. Community members that meet the requirements listed in TMC Section 2.42.020.A shall submit a completed Boards and Commissions Application to the Mayor's Office. The Mayor's Office will forward the application to the Commission for review. The Mayor appoints applicants to the Civil Service Commission. D. Term of Appointment. The term of appointment for the members of the Civil Service Commission shall be six years provided, however, that in order for the fewest terms to expire in any one year all current terms of existing appointed Commission members shall expire on December 31 of the year set forth below for each respective position number: CC:\Legislative Development\Reenact TMC 2.42 Civil Service Commission strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn 66 Page 2 of 8 Term for Position 1 shall expire December 31, 20212027 Term for Position 2 shall expire December 31, 204-72023 Term for Position 3 shall expire December 31, 20192025 After the expiration of the current terms for the existing Commission members listed above, each term thereafter shall be for a period of six years. E. Compensation. The members of the Commission shall serve without compensation. F. Resignations. If a Commission member is unable to complete their term of service a letter of resignation should be sent to the Mayor indicating the effective date of the resignation. G. Vacancies. Any appointment to a position vacated other than by the expiration of the term of the appointment shall be to fill only the unexpired portion of said term. H. Revocation of Appointment. Any member of the Commission may be removed from office for incompetence, incompatibility or dereliction of duty, or malfeasance in office, or other good cause; provided, however, that no member of the Commission shall be removed until charges have been preferred, in writing, due notice and a full hearing held. [RCW 41.08.030, RCW 41.12.030] Section 5. TMC Section 2.42.030 is hereby reenacted to read as follows: 2.42.030 Commission Organization — Duties A. Election of Chair and Vice Chair. Members of the Commission shall meet and organize by electing from the members of the Commission a Chair and a Vice -chair to serve for one year. The Vice -chair shall promote to the Chair the following year and a new Vice -Chair shall be elected by the members. It shall be the duty of the Chair to preside at all meetings. The Vice -chair shall perform this duty in the absence of the Chair. B. Duties of the Commission. The duties of the Civil Service Commission shall include: 1. To make suitable rules and regulations that shall provide in detail the manner in which examinations may be held, and appointments, promotions, transfers, reinstatements, demotions, suspensions and discharges shall be made. The rules and regulations shall also provide for the classification of all positions within the Police and Fire Departments according to the duties, responsibilities and qualifications of each and shall further provide the manner in which such classification shall be accomplished. The rules and regulations and any amendments thereof shall be available to the public. 2. All tests shall be practical and shall consist only of subjects which will fairly determine the capacity of persons examined to perform duties of the position to which appointment is to be made, and may include tests of physical fitness and/or manual skill. 3. The rules and regulations adopted by the Commission shall provide for a credit in favor of all applicants for appointment under civil service, who, in time of war, or in any expedition of the Armed Forces of the United States, have served in and been CC:\Legislative Development\Reenact TMC 2.42 Civil Service Commission strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn Page 3 of 8 67 honorably discharged from the Armed Forces of the United States, including the Army, Navy and Marine Corps and the American Red Cross, in compliance with RCW 41.04.010. 4. The Commission shall make investigations concerning and report upon all matters touching the enforcement and effect of the provisions of this chapter, and the rules and regulations prescribed hereunder; inspect all institutions, departments, offices, places, positions and employments affected by this chapter, and ascertain whether this chapter and all such rules and regulations are being obeyed. 5. Such investigations may be made by the Commission or by any commissioner designated by the Commission for that purpose. Not only must these investigations be made by the Commission as aforesaid, but the Commission must make like investigation on petition of a citizen, duly verified stating that irregularities or abuses exist, or setting forth in concise language, in writing, the necessity for such investigation. In the course of such investigation, the Commission or designated commissioner, or Chief Examiner, shall have the power to administer oaths, subpoena and require the attendance of witnesses and the production by them of books, papers, documents and accounts pertaining to the investigation and also to cause the deposition of witnesses residing within or without the state to be taken in the manner prescribed by law for like depositions in civil actions in the superior court; and the failure upon the part of any person so subpoenaed to comply with the provisions of this section shall be deemed a violation of this chapter and punishable as such. 6. All hearings and investigations before the Commission, or designated commissioner, or Chief Examiner, shall be governed by this chapter and by rules of practice and procedure to be adopted by the Commission, and in the conduct thereof neither the Commission, nor designated commissioner, shall be bound by the technical rules of evidence. No informality in any proceedings or hearing, or in the manner of taking testimony before the Commission or designated commissioner, shall invalidate any order, decision, rule or regulation made, approved or confirmed by the Commission; provided, however, that no order, decision, rule or regulation made by any designated commissioner conducting any hearing or investigation alone shall be of any force or effect whatsoever unless and until concurred in by at least one of the other two members. 7. To hear and determine appeals or complaints respecting the administrative work of the Human Resources Department related to the Commission's duties, the rejection of any examination and such other matters as may be referred to the Commission pursuant to the duties outlined in TMC Section 2.42.030.6.1. 8. To establish and maintain in card or other suitable form a roster of employees covered by civil service. 9. To provide for, formulate and hold competitive tests to determine the relative qualifications of persons who seek employment in any class or position and, as a result thereof, establish eligible lists for the various classes of positions as established by the City; and to provide that employees laid off because of curtailment of expenditures, reduction in force, and for like cause, head the list in the order of their seniority, to the end that they shall be the first to be reemployed. CC:\Legislative Development\Reenact TMC 2.42 Civil Service Commission strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn 68 Page 4 of 8 10. When a vacant position is to be filled, to certify to the appointing authority, on written request, the names of the three persons highest on the eligible list for the class. The Commission shall make provision in its rules for provisional or temporary appointments to be utilized when there is no such eligible list applicable to the vacant position, or which may be utilized at the discretion of the appointing authority when there are less than three names on the eligibility list applicable to the vacant position. Such temporary or provisional appointment shall not exceed a period of six months in duration but may be extended for up to an additional six months if for any reason it cannot be determined at the expiration of the initial appointment that the position being filled by temporary or provisional appointment will in fact continue to be vacant, such as in the instance of a position vacant due to an officer on disability leave under the LEOFF Act, or for other good cause which in the discretion of the Commission warrants an additional extension of such a provisional or temporary appointment. 11. To keep such records as may be necessary for the proper administration of this chapter. 12. Approval of payroll in accordance with RCW 41.08.120 and RCW 41.12.120. C. Appointment of Secretary and Chief Examiner. The Commission shall appoint a person to hold the position of Secretary and Chief Examiner. The method of appointment and duties of the Secretary and Chief Examiner shall be as prescribed in the rules adopted by the Commission. The duties of the Secretary and Chief Examiner shall be to keep the records of the Commission, preserve all reports made to it, superintend and keep a record of all examinations held under its direction, and perform such other duties as the Commission may prescribe. Section 6. TMC Section 2.42.040 is hereby reenacted to read as follows: 2.42.040 Meetings A. Frequency and Conduct. Commission meetings shall be held at least monthly and shall be conducted in public session and noticed in accordance with the Open Public Meetings Act (OPMA). B. By -Laws. The Commission shall adopt bylaws to provide guidelines for the conduct of business. C. Quorum. Two members of the Commission shall constitute a quorum and the votes of any two members of such Commission concurring shall be sufficient for the decision of all matters and the transaction of all business to be decided or transacted by the Commission. D. Staff Assistance. The City shall provide assigned staff to support the Commission. The primary role of staff is to represent the City and facilitate communication between the Commission, City Administration, the City Council and other City departments. Staff responsibilities include: 1. Ensuring that meeting notifications and recordkeeping are consistent with applicable state laws; CC:\Legislative Development\Reenact TMC 2.42 Civil Service Commission strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn Page 5 of 8 69 2. Ensuring compliance with applicable laws, such as the Open Public Meetings Act (OPMA) and Public Records Act (PRA); 3. Providing professional guidance, issue analysis and recommendations; 4. Assisting with research, report preparation and correspondence; and 5. Compiling agendas, maintaining minutes, forwarding recommendations and/or implementing actions. 6. Duties of civil service Secretary and Chief Examiner as appointed per TMC Section 2.42.030.C. Section 7. TMC Section 2.42.050 is hereby reenacted to read as follows: 2.42.050 Persons Included — Competitive Examination — Transfers, Discharges and Reinstatements The provisions of this chapter shall include all full-time, fully paid employees of the City's Police and/or Fire Departments, with the exception of the chiefs thereof who, because of the nature of their positions and pursuant to RCW 41.08.050 and 41.12.050, shall serve in their the positions as other City department heads, and with the further exception of unclassified position appointments as authorized by RCW 41.12.050(2)(b), that may only include selections from the following positions up to the limit of the number of positions authorized: Assistant chief, deputy chief, bureau commander, and administrative assistant or administrative secretary pursuant to RCW 41.12.050(3). The position of civil service Secretary and Chief Examiner shall not be a civil service position. Section 8. TMC Section 2.42.060 is hereby reenacted to read as follows: 2.42.060 Qualifications of Applicants An applicant for a position of any kind under civil service must be a citizen of the United States of America who can read and write the English language. An applicant for a position of any kind under civil service must be of an age suitable for the position applied for, in ordinary good health, of good moral character and of temperate and industrious habits; these facts to be ascertained in such manner as the Commission may deem advisable. Section 9. TMC Section 2.42.070 is hereby reenacted to read as follows: 2.42.070 Power to Create Offices, Make Appointments and Fix Salaries Not Infringed All offices, places, job descriptions, positions and employments and Fire and Police Department classifications coming along within the purview of this chapter shall be created by the Mayor and City Council or Mayor alone or whomever otherwise is vested with power and authority to select, appoint, or employ any person coming within the CC:\Legislative Development\Reenact TMC 2.42 Civil Service Commission strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn 70 Page 6 of 8 purview of this chapter; and nothing contained in this section shall infringe upon the power and authority of any such person or group of persons, or appointing authority, to fix the salaries and compensation of all employees employed hereunder. Section 10. TMC Section 2.42.080 is hereby reenacted to read as follows: 2.42.080 Enforcement by Civil Action — Legal Counsel It shall be the duty of the Commission to begin and conduct all civil suits which may be necessary for the proper enforcement of this chapter and of the rules of the Commission. The Commission shall be represented in such suits by the chief legal officer of the City, or his/her designee, but the Commission may in any case be represented by special counsel appointed by it. Section 11. TMC Section 2.42.090 is hereby reenacted to read as follows: 2.42.090 Deceptive Practices, False Marks, Etc., Prohibited No commissioner or any other person shall, by himself or in cooperation with one or more persons, defeat, deceive, or obstruct any person in respect of his right of examination or registration according to the rules and regulations of this chapter, or falsely mark, grade, estimate or report upon the examination or proper standing of any person examined, registered or certified pursuant to the provisions of this chapter, or aid in so doing, or make any false representation concerning the same, or concerning the person examined, or furnish any person any special or secret information for the purpose of improving or injuring the prospects or chances of any person so examined, registered or certified, or to be examined, registered or certified or persuade any other person, or permit or aid in any manner any other person to personate him, in connection with any examination or registration of application or request to be examined or registered. Section 12. TMC Section 2.42.100 is hereby reenacted to read as follows: 2.42.100 Penalty — Jurisdiction Any person who shall willfully violate any of the provisions of this chapter shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than $100 and by imprisonment in jail for not longer than 30 days, or by both fine and imprisonment. Section 13. TMC Section 2.42.110 is hereby reenacted to read as follows: 2.42.110 Applicability The examination and eligibility provisions of this chapter and establishment of positions covered by civil service by the provisions of this chapter shall be effective for all appointments made after the effective date of this ordinance. CC:\Legislative Development\Reenact TMC 2.42 Civil Service Commission strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn Page 7 of 8 71 Section 14. Corrections by City Clerk or Code Reviser Authorized. 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 15. 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 16. 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 January 1, 2023. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: CC:\Legislative Development\Reenact TMC 2.42 Civil Service Commission strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn 72 Page 8 of 8 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE NOS. 167, 548, 572, 842 AND 1223; REENACTING TUKWILA MUNICIPAL CODE CHAPTER 2.48, "CITY FIRE DEPARTMENT PENSION PARTICIPANTS," TO MAINTAIN STATE DEATH AND DISABILITY PROVISIONS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila has entered into an interlocal agreement with Puget Sound Regional Fire Authority for the provision of fire and emergency medical services effective January 1, 2023; and WHEREAS, the City needs to maintain the Firemen's Pension Fund for those who have already retired and are entitled to benefits under this fund pursuant to the provisions of chapter 41.24 RCW; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance Nos. 167, 548, 572, 842 and 1223 are hereby repealed in their entirety. Section 2. TMC Chapter 2.48 Reenacted. Tukwila Municipal Code (TMC) Chapter 2.48 is hereby reenacted to read as follows: CHAPTER 2.48 FIRE—vE--PARTMEN TCITY FIRE DEPARTMENT PENSION PARTICIPANTS Sections: 2.48.010 2.48.020 2.'18.030 State Death and Disability Provisions Number of Volunteer PersonnelFire and Emergency Medical Services Provided by Puget Sound Regional Fire Authority Compensation of Volunteer Firemen 2.18.0'10 Fire Marshal CC:\Legislative Development\Reenact TMC 2.48 City Fire Dept Pension Participants strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn Page 1 of 3 73 Section 3. TMC Section 2.48.010 is hereby reenacted to read as follows: 2.48.010 State Death and Disability Provisions A. On and after March 19, 1945, all firemen iirefighter , including volunteer and fully - paid, shall be entitled to the benefits of the death and disability provisions provided under RCW chapte' 41.24 RCW. B. The City Clerk shall be the secretary -treasurer of the board of trustees created by said act and shall enroll each fireman ilreIgn, under the death and disability provisions of said law. Section 4. TMC Section 2.48.020 is hereby reenacted to read as follows: 2.48.020 Number of Volunteer PersonnelFire and Emergency Medical Services Provided by Puget Sound Regional Fire Authority firemen for each 1,000 of population, or fraction thereof of the City's population. Effective January 1, 2023, City fire and emergency medical services shall be provided by the Puget Sound Regional Fire Authority ("PSRFA") pursuant to terms of an interlocal agreement. Any references in this Tukwila Municipal Code to the Tukwila Fire Department or Fire Marshal shall be interpreted to refer to the PSRFA effective January 1, 2023. Section 5. Per the repealer in Section 1 of this ordinance, TMC Sections 2.48.030, and 2.48.040 are hereby eliminated. A. Volunteer firemen shall receive a reimbursement of $2.50 per hour for ch fire call he answers and a fee of $2.50 per hour for ch practice he attends, but shall receive no less than $5.00 per call or practice. B. Said reimbursements shall be paid monthly upon receipt of an itemized statement from the Fire Chief. C. The total of all reimbursements paid to volunteer firemen in a calendar year under 2.48.040 Fire Marshal A. There is established within the Tukwila Fire Department the position of fire marshal, which shall be an administrative position under direction of the Fire Chief. B. Salary for the fire marshal for the 1974 budget year shall be $1,166 per month. CC:\Legislative Development\Reenact TMC 2.48 City Fire Dept Pension Participants strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn 74 Page 2 of 3 Section 6. Corrections by City Clerk or Code Reviser Authorized. 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 7. 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 8. 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 January 1, 2023. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: CC:\Legislative Development\Reenact TMC 2.48 City Fire Dept Pension Participants strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn Page 3 of 3 75 76 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 1276; REENACTING TUKWILA MUNICIPAL CODE 2.92 "HAZARDOUS MATERIALS INCIDENT COMMAND AGENCY," TO UPDATE DESIGNATION; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, RCW 70.136.030 requires the City to designate a hazardous materials incident command agency within its respective boundaries; and WHEREAS, the City of Tukwila has entered into an interlocal agreement with Puget Sound Regional Fire Authority for the provision of fire and emergency medical services effective January 1, 2023; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance No. 1276 is hereby repealed in its entirety. Section 2. TMC Chapter 2.92 Reenacted. Tukwila Municipal Code (TMC) Chapter 2.92 is hereby reenacted to read as follows: CHAPTER 2.92 HAZARDOUS MATERIALS INCIDENT COMMAND AGENCY Sections: 2.92.010 Agency 2.92.020 Assistance 2.92.030 2.92.040 Fire DepartmentPuget Sound Regional Fire Authority Designated as Fire ChiefPuget Sound Regional Fire Authority Authorized to Seek Form of Writtcn Agreements Emergency Assistance Agreement Notification of Terms CC:\Legislative Development\Reenact TMC 2.92 Hazmat Incident Command Agency strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn Page 1 of 5 77 Section 3. TMC Section 2.92.010 is hereby reenacted to read as follows: 2.92.010 Fire DepartmentPuget Sound Regional Fire Authorit Designated as Agency The governing body of the City designates the Tukwila Fire DepartmentPuget Sound Regional Fire Authorito, as the hazardous materials incident command agency for all hazardous materials incidents within the corporate limits of the City. Section 4. TMC Section 2.92.020 is hereby reenacted to read as follows: 2.92.020 Fire ChiefPuget Sound Regional Fire Authority Authorized to Seek Assistance the provisions of TMC 2.92.030, to enter into written agreements with persons, agencies, and/or corporations who may provide a-,,istance with respect to a hazardous materials incident. In accordance with the provisions of RCW 4.24, such persons, agencies, and/or corporations are not liable for civil damages resulting from any act or omission in the rendering of such care, assistance, or device, other than acts or orals ions Go titu ing-groc.s negligence or willful or wanton misconduct, provided: 1. Prior to the incident, the Tukwila Fire Department and the person whose agreement which complies substantially with the form that is specified in TMC 2.92.030; and 2. The request for assistance comes from the Tukwila Fire Department. Puget Sound Regional Fire Authority is authorized to enter into written agreements with persons, agencies, and/or corporations who may provide assistance with respect to a hazardous materials incident. In accordance with the provisions of RCW 70.136.050, 70.136.060, and 70.136.070, any person or public agency whose assistance has been requested by an incident command agency, who has entered into a written hazardous materials assistance agreement before or at the scene of the incident, and who, in good faith, renders emergency care, assistance, or advice with respect to a hazardous materials incident, is not liable for civil damages resulting from any act or omission in rendering of such care, assistance, or advice, other than acts or omissions constituting gross negligence or willful or wanton misconduct. Section 5. Per the repealer in Section 1 of this ordinance, TMC Sections 2.92.030 and 2.92.040 are hereby eliminated. 2.92.030 Form of Written Agreements The written agreements referred to in TMC 2.92.020 shall be in substantially the following form: CC:\Legislative Development\Reenact TMC 2.92 Hazmat Incident Command Agency strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn Page 2 of 5 78 This Agreement is made this day of , 19_, between the Tukwila Fire ee. - City of Tukwila and .. Se— City. . WHEREAS, the Tukwila Fire Department is authorized, pursuant to Chapter 4.24 RCW, to enter into agreements with persons, agencies, and/or corporations who may provide assistance with respect to a hazardous materials incident; and 1 Al • materials incident is not liable for civil damages resulting from or omissions constituting grooms negligence or willful or wanton misconduct." IT IS THEREFORE AGREED: 1. shall be designated as a person requested to assist with respect to a hazardous materials incident. 2. The person requested to a.. ist shall not be obligated to assist. 3. Chief or his representatives. �. The person requested to assist may withdraw his assistance if he deems the actions or directions of the Fire Chief to be contrary to accepted hazardous 5. The person requested to a�ist shall not profit from rendering the assistance. 6. The person requested to assist shall not be a public employee acting in his official capacity within the City of Tukwila. 7. The liability standard defined above, as provided in RCW Chapter 4.24, agency when assistance is requested, for recording the name of the person whose assistance is requested, and the time and date of the request. Such records shall be retained for three years by the Tukwila Fire Department. 9. A copy of the official incident command agency designation shall be a part of this assistance agreement. Fire Chief, City of Tukwila CC:\Legislative Development\Reenact TMC 2.92 Hazmat Incident Command Agency strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn Page 3of5 79 2.92.040 Emergency Assistance Agreement Notification of Terms A. The Chief of the Fire Department or his representative may enter into verbal where execution of a written agreement prior to the incident is not possible. A commander or his representative to the person whose assistance is requested. The notification which appears in TMC 2.92.040.B, indicating the date and time of signature. B. The notification required by TMC 2.92.O40.A shall be as follows: NOTIFICATION OF "GOOD SAMARITAN" LAW designated hazardous materials incident command agency. To encourage your assistance, the Washington State Legislature has passed "Good Samaritan" legislation respect to a hazardous materials incident is not liable for civil damages resulting from or omi-sions constituting gross negligence or willful or wanton misconduct." any time. 2. You cannot profit from assisting. 3. You must agree to act under the direction of the incident commander. /1. You are not covered by this law if you caused the initial accident or if you arc a public employee doing your official duty. I have read and understand the above. Date Time Date Time Section 6. Corrections by City Clerk or Code Reviser Authorized. 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. CC:\Legislative Development\Reenact TMC 2.92 Hazmat Incident Command Agency strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn 80 Page 4 of 5 Section 7. 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 8. 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 January 1, 2023. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: CC:\Legislative Development\Reenact TMC 2.92 Hazmat Incident Command Agency strike-thru 11-2-22 CT:AY Review and analysis by Andy Youn Page 5 of 5 81 82 City of Tukwila City Council Community Services & Safety Committee Meeting Minutes November 14, 2022 - 5:30 p.m. - Hybrid Meeting; Hazelnut Conference Room & MS Teams Councilmembers Present: Staff Present: Kathy Hougardy, Chair; Mohamed Abdi, Tosh Sharp David Cline, Rachel Bianchi, Norm Golden, Kris Kelly, Tiffany Johnson, Matt Austin, Laurel Humphrey Chair Hougardy called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Resolution: 2023 Legislative Agenda Staff is seeking Council approval of a resolution adopting the legislative agenda for use in Olympia during the 2023 session. Committee Recommendation: Unanimous approval. Forward to November 28, 2022 Committee of the Whole. B. Puget Sound Regional Fire Authority Transition Staff is seeking Council approval of four station lease agreements, four ordinances amending *the Municipal Code to conform with the transition of fire services, and one resolution seeking annexation. Committee Recommendation: Unanimous approval. Forward to November 28, 2022 Committee of the Whole. C. Contract: Foster Golf Links Water Main Repair Staff is seeking a contract with Mr. Rooter Plumbing in an amount not to exceed $72,675,12 for repair of a water main line break at Foster Golf Links. Committee Recommendation: Unanimous approval. Forward to November 21, 2022 Regular Consent Agenda. 11. MISCELLANEOUS Councilmember Sharp reported concerns with cars parking illegally on sidewalks near businesses on Tukwila International Boulevard. Councilmembers and staff discussed business outreach and enforcement possibilities. The meeting adjourned at 6:37 p.m. '7 Committee Chair Approval Minutes by LH 83 84 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/28/22 CT 12/5/22 CT ITEM INFORMATION ITEM No. 4.B. (2) STAFF SPONSOR: DAVID CLINE ORIGINAL AGENDA DATE: 11/28/22 AGENDA II EM TITLE Resolution to Seek Annexation Into the Puget Sound Regional Fire Authority CATEGORY ® Discussion Mtg Date 11/28/22 ❑ Motion Mtg Date ® Resolution Mtg Date 12/5/22 ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ® Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY Resolution to Seek Annexation Into the Puget Sound Regional Fire Authority REVIEWED BY ❑ Trans&Infrastructure Svcs ® Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/14/2022 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. Mayor's Office COMMITTEE Unanimous Approval; Forward to 11/28/2022 Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: GENERAL FUND Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/28/22 12/5/22 MTG. DATE ATTACHMENTS 11/28/22 Informational Memorandum dated 11/7/2022 Draft Resolution Minutes from 11/14/2022 Community Services & Safety Committee Meeting 85 86 T0: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Mayor Ekberg Community Services and Safety Committee FROM: David Cline, City Administrator DATE: November 7, 2022 SUBJECT: Resolution to Seek Annexation Into the Puget Sound Regional Fire Authority ISSUE In October the City of Tukwila entered into an interlocal agreement (ILA) with the Puget Sound Regional Fire Authority for provision of fire and emergency medical services effective January 1, 2023. Terms of the ILA state that the City shall seek annexation into the Puget Sound Regional Fire Authority. BACKGROUND Annexation is subject to future legislative action by both the City of Tukwila and the Puget Sound Regional Fire Authority. Pursuant to RCW 52.26.300(2) annexation is initiated by the adoption of a resolution by the governing body of the jurisdiction requesting the annexation. Once the Puget Sound Regional Fire Authority Governance Board receives the resolution requesting annexation, they will need to adopt a resolution amending its plan to establish the terms and conditions of the requested annexation and submit the resolution and plan amendment to the City. The City must then adopt a resolution approving both the annexation and the Puget Sound Regional Fire Authority plan amendment before the measure can be placed on the ballot for a simple majority of voters to authorize the annexation. As referenced in Sections 2.2 and 7.5 of the ILA, the initial timeline shall be to place an initiative on the April 2024 ballot for an annexation effective date of no later than August 1, 2024. These timelines may be accelerated upon mutual agreement of both organizations. DISCUSSION Adoption of this resolution is the first step required to seek annexation. Once adopted, the resolution must be filed with the Puget Sound Regional Fire Authority Governance Board. Per Section 7.5 of the ILA, two groups need to be formed: an Annexation Oversight Group and an Annexation Working Group. The Annexation Oversight group will be comprised of up to three elected officials from the City and up to three elected officials from the PSRFA. This group will begin 87 INFORMATIONAL MEMO Page 2 meeting in January 2023, as frequently as needed, to review the work process and the recommendations of the Annexation Working Group. The Annexation Oversight Group shall mutually approve and recommend the Annexation Plan to be sent for review and approval by the PSRFA Governing Board and the City Council. The Annexation Working Group is comprised of City Administrator Cline, Deputy Chief Golden, PSRFA Chief Morris and PSRFA Assistant Chief Carson and is meeting regularly to develop the Annexation Plan. The Working Group is also supported by City Attorney Kari Sand and PSRFA Attorney Brian Snure. The Working Group will also provide support to the Annexation Oversight Group. The Annexation Working Group is preparing a draft Annexation Plan for initial review by the Annexation Oversight Group at their first meeting in January 2023. The Annexation Plan shall accomplish shared goals and principles outlined in Section 2.3 including Equitable Governance Representation and Equitable Financial Contribution and will establish key milestones for a First and Second Annexation Vote consistent with Section 2.2 of the ILA. Updates will be provided to Council on the terms of the plan as it is being developed. RECOMMENDATION The Committee is being asked to move this item forward to the November 28, 2022 Committee of the Whole. ATTACHMENTS Resolution re: Annexation to the Puget Sound Regional Fire Authority 88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, EXPRESSING THE INTENT TO PURSUE THE BENEFITS OF RECEIVING FIRE AND EMERGENCY MEDICAL SERVICES FROM THE PUGET SOUND REGIONAL FIRE AUTHORITY VIA ANNEXATION. WHEREAS, in October of 2022, the City of Tukwila ("the City") and the Puget Sound Regional Fire Authority ("PSRFA") entered into an interlocal agreement for consolidation of fire and emergency medical services to be effective January 1, 2023; and WHEREAS, the City and the PSRFA share a contiguous border with the City of Kent, which is part of the PSRFA, along the City's southeast boundary and with the City of SeaTac, which is also part of the PSRFA, along the City's southwest boundary; and WHEREAS, the City is a fire protection jurisdiction as defined in RCW 52.26.020(3); and WHEREAS, Chapter 52.26 RCW authorizes two or more fire protection jurisdictions to participate in a regional fire service authority commonly known as a Regional Fire Authority or "RFA"; and WHEREAS, both the City and the PSRFA are interested in pursuing the potential operational efficiencies and cost savings resulting from the City annexing into the PSRFA; and WHEREAS, both the City and the PSRFA believe that the public health and safety of the people they serve will benefit from the City's annexation into the PSRFA; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: CC:\Legislative Development\Annexation to PSRFA 11-1-22 CT:ay Review and analysis by Andy Youn Page 1 of 2 89 Section 1. Pursuant to RCW 52.26.300(2), the City requests annexation into the Puget Sound Regional Fire Authority, subject to the provisions of RCW 52.26.300(3) and voter approval pursuant to RCW 52.26.300(4). Section 2: The City Clerk shall transmit a copy of this resolution to the Governing Board of the PSRFA in accordance with RCW 52.26.300(2). PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Thomas McLeod, Council President APPROVED AS TO FORM BY: Office of the City Attorney CC:\Legislative Development\Annexation to PSRFA 11-1-22 CT:ay Review and analysis by Andy Youn 90 Filed with the City Clerk: Passed by the City Council: Resolution Number: Page 2of2 City of Tukwila City Council Community Services & Safety Committee Meeting Minutes November 14, 2022 - 5:30 p.m. - Hybrid Meeting; Hazelnut Conference Room & MS Teams Councilmembers Present: Staff Present: Kathy Hougardy, Chair; Mohamed Abdi, Tosh Sharp David Cline, Rachel Bianchi, Norm Golden, Kris Kelly, Tiffany Johnson, Matt Austin, Laurel Humphrey Chair Hougardy called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Resolution: 2023 Legislative Agenda Staff is seeking Council approval of a resolution adopting the legislative agenda for use in Olympia during the 2023 session. Committee Recommendation: Unanimous approval. Forward to November 28, 2022 Committee of the Whole. B. Puget Sound Regional Fire Authority Transition Staff is seeking Council approval of four station lease agreements, four ordinances amending *the Municipal Code to conform with the transition of fire services, and one resolution seeking annexation. Committee Recommendation: Unanimous approval. Forward to November 28, 2022 Committee of the Whole. C. Contract: Foster Golf Links Water Main Repair Staff is seeking a contract with Mr. Rooter Plumbing in an amount not to exceed $72,675,12 for repair of a water main line break at Foster Golf Links. Committee Recommendation: Unanimous approval. Forward to November 21, 2022 Regular Consent Agenda. 11. MISCELLANEOUS Councilmember Sharp reported concerns with cars parking illegally on sidewalks near businesses on Tukwila International Boulevard. Councilmembers and staff discussed business outreach and enforcement possibilities. The meeting adjourned at 6:37 p.m. '7 Committee Chair Approval Minutes by LH 91 92 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayors review Council review 11/28/22 Vicky 12/5/22 Vicky ITEM INFORMATION ITEM No. 4.C. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 11/28/22 AGENDA ITEM TITLE Ordinances updating fire and park impact fees CATEGORY ® Discussion Mtn Date 11/28/22 ❑ Motion Mtg Date ❑ Resolution Mtg Date ® Ordinance Mtg Date 12/5/22 ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ® P&R ❑ Police ❑ PW SPONSOR'S SUMMARY City Council is being asked to approve two ordinances. One to update fire impact fees and one to update park impact fees REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/14/22 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONSOR/ADMIN. Finance COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/28/22 12/5/22 MTG. DATE ATTACHMENTS 11/28/22 Informational Memorandum dated 10/19/22 Draft Ordinances Current fee schedules Full Construction Cost Index Data (Seattle, WA June 2020 to June 2022 Minutes from the Finance & Governance Committee meeting 11/14/22 12/5/22 93 94 TO: FROM: DATE: SUBJECT: City of Tukwila Allan Ekberg, Mayor Parks & Recreation Department - Pete Mayer, Interim Director INFORMATIONAL MEMORANDUM Finance & Governance Committee David Rosen, Parks & Recreation Fiscal Analyst Vicky Carlsen, Finance Director October 19, 2022 Ordinance Updating Fire and Parks Impact Fees Rate Schedule ISSUE Per TMC 16.26.080, the Fire Impact Fee Schedule is to be updated annually. Additionally, per TMC 16.28.080, the Park Impact Fee schedule is to be updated annually. The last updates were made via Ordinance 2643 for Fire Impact Fees and Ordinance 2644 for Park Impact Fees, approved by City Council in December of 2020, creating the 2021 Fire Impact Fee Schedule in Figure 16-1 "Fee Schedule" as Exhibit B to Ordinance 2643 and the 2021 Parks Impact Fee Schedule in Figure 16-1 "Fee Schedule" as Exhibit B to Ordinance 2644. No updates were made to the fee schedules in 2022. Staff seeks to update the Fire and Park Impact Fee schedules for 2023 to include revised rate structures reflecting current economic conditions. BACKGROUND Fire and Park Impact Fees are one-time charges assessed by a given government against a new development project as a means of helping pay for new or expanded public facilities that will be needed to address increased demand for services created by the development itself. Fire Impact fees support the development of facilities related to Fire and the purchase of capital items for Fire. Park Impact fees support the acquisition and development of parks, trails, natural areas and recreation facilities. The developer or builder of a proposed residential or commercial development pay the impact fees at the time a building permit is issued. ANALYSIS Authority to impose these fees is granted via Revised Code of Washington (RCW) as well as the Washington Administrative Code (WAC). While no RCW or WAC exists that imposes any restrictions on or creates any requirements concerning how a city updates its fee schedule, the City has adopted an index to inform the setting of fees. TMC 16.26.080 (1) for Fire Impact Fees and TMC 16.28.080 (1) for Park Impact Fees require the use of the Construction Cost Index for Seattle (June -June) published by the Engineering News Record to calculate annual inflation adjustments in the impact fee rates. The index calculates general construction costs across 20 U.S. cities. The table below reflects the Construction Cost Index (CCI) for Seattle from June 2020 to June 2022. Note: Due to rounding, the proposed fee increase is not the same in terms of percentage change. Date CCI % Change June 2022 14661.2 11.36 June 2021 13165 8.43 June 2020 12141.8 N/A Total Change 2020-2022 2519.4 20.75% Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 95 FINANCIAL IMPACT Fire Impact Fees and Park Impact Fees are not a general fund revenue source; therefore, passage of this ordinance does not directly create any general fund inflows or outflows. Also, due to Fire Impact and Park Impact Fees only being earned when development occurs, they are considered a volatile revenue source. RECOMMENDATION Department staff recommends the Finance & Governance Committee approve the proposed ordinances and forward it to the Committee of the Whole. ATTACHMENTS A --- Proposed Ordinance for Fire Impact Fees (Includes proposed rate schedule) B --- Proposed Ordinance for Park Impact Fees (Includes proposed rate schedule) C --- Full Construction Cost Index Data (Seattle, WA June 2020 to June 2022) Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 96 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2571 TO UPDATE THE FIRE IMPACT FEE SCHEDULE, AS CODIFIED IN TUKWILA MUNICIPAL CODE CHAPTER 16.26 AS FIGURE 16-1, "FEE SCHEDULE;" REPEALING ORDINANCE NO. 2643; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council adopted Ordinance No. 2571 related to fire impact fees on May 7, 2018; and WHEREAS, Tukwila Municipal Code Sections 16.26.060, 16.26.070 and 16.26.080 provide direction on annual updates to fire impact fees; and WHEREAS, the City desires to promote economic recovery in the construction industry and provide flexibility on the payment of fire impact fees by delaying the effective date to April 1, 2023; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance No. 2643 is hereby repealed in its entirety. Section 2. Fire Impact Fee Schedule Amended. Exhibit B to Ordinance No. 2571 is hereby amended to update the Fire Impact Fee Schedule codified as Figure 16-1, "Fee Schedule," as attached hereto. Section 3. Corrections by City Clerk or Code Reviser Authorized. 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 CC:\Legislative Development\Fire Impact Fees 2023 Update 11-3-22 VC:AY Review and analysis by Andy Youn Page 1 of 2 97 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 April 1, 2023. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Allan Ekberg, Mayor Office of the City Attorney Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: Updated Figure 16-1, "Fee Schedule," for Fire Impact Fees (Exhibit B to Ordinance No. 2571) CC:\Legislative Development\Fire Impact Fees 2023 Update 11-3-22 VC:AY Review and analysis by Andy Youn Page 2 of 2 98 Figure 16-1 "Fee Schedule" Exhibit B CITY OF TUKWILA FIRE IMPACT FEE SCHEDULE RESIDENTIAL – per dwelling unit (a) Single family (d) with fire sprinkler system installed (b) Multi -family COMMERCIAL/NON-RESIDENTIAL - per 1,000 square feet of development (c) Retail (c) Office (c) Industrial/manufacturing FIRE Impact Fee $1,882$2,273 X9$2,136 $2468$2 618 $2—$2,546 $ 824$994 $ 176$213 (a) Attached accessory dwelling units are exempt from impact fees. (b) A structure with more than two dwelling units. (c) See the more detailed land use descriptions in the Land Use Categories document. (d) 6% discount for single family units with fire sprinkler system installed representing the portion of all incidents that were fire only—as opposed to emergency medical incidents. Per Section 16.26.120.B.9. of the Tukwila Municipal Code, "A fee payer installing a residential fire sprinkler system in a single-family home shall not be required to pay the fire operations portion of the impact fee." 99 100 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2572 TO UPDATE THE PARKS IMPACT FEE SCHEDULE AS CODIFIED IN TUKWILA MUNICIPAL CODE CHAPTER 16.28 AS FIGURE 16-1, "FEE SCHEDULE,"; REPEALING ORDINANCE NO. 2644; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council adopted Ordinance No. 2572 related to parks impact fees on May 7, 2018; and WHEREAS, Tukwila Municipal Code Sections 16.28.060, 16.28.070, and 16.28.080 provide direction on annual updates to parks impact fees; and WHEREAS, the City desires to promote economic recovery in the construction industry and provide flexibility on the payment of parks impact fees by delaying the effective date to April 1, 2023; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance No. 2644 is hereby repealed in its entirety. Section 2. Parks Impact Fee Schedule Amended. Exhibit B to Ordinance No. 2572 is hereby amended to update the Parks Impact Fee Schedule codified as Figure 16-1, "Fee Schedule," as attached hereto. Section 3. Corrections by City Clerk or Code Reviser Authorized. 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 CC:\Legislative Development\Parks Impact Fees 2023 Update 10-31-22 DR:AY Review and analysis by Andy Youn Page 1 of 2 101 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 April 1, 2023. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: Updated Figure 16-1, "Fee Schedule," for Parks Impact Fees (Exhibit B to Ordinance No. 2572) CC:\Legislative Development\Parks Impact Fees 2023 Update 10-31-22 DR:AY Review and analysis by Andy Youn 102 Page 2of2 Figure 16-1 "Fee Schedule" Exhibit B CITY OF TUKWILA PARKS IMPACT FEE SCHEDULE (2023) RESIDENTIAL — per dwelling unit (a) Single family (b) Multi -family COMMERCIAL/NON-RESIDENTIAL PARKS Impact Fee $3,006$3,629 $2,618$3,162 - per 1,000 square feet of development (c) Retail $1,375$1,660 (c) Office $1,239$1,496 (d) K-12 Educational Facilities $-248$300 (c) Industrial/Manufacturing $687$830 (a) Attached accessory dwelling units are exempt from impact fees. (b) A structure with more than two dwelling units. (c) See the more detailed land use descriptions in the Land Use Categories document. (d) 80% discount for K-12 educational facilities. 103 [ January [ November CCi 1111"- ENR Cost Index - Seattle, WA June 2020 - June 2022 2022 2022 2022 2022 2022 2022 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2020 2020 2020 2020 2020 2020 2020 MONTH June May April March [ February December LOctober [September August July June May L April [ March [ Feb Jan Dec Nov Oct Sept r Aug July June 14661.2 14623.7 14493.3 14451 14425.3 13722.8 13682.7 13595.6 13573.9 13525.7 13466.9 13248.3 13165 12994.4 12945.2 12865.1 12826.1 12845.4 12840.4 12796.6 12776.2 12771.7 12431 12140.5 12141.8 %CHG 11.4 12.5 12 12.3 12.5 6.8 6.6 6.2 6.20% 5.9 8.3 9.1 8.4 7 6.6 7.3 5.9 6 6 5.80% 5.6 5.6 2.8 1.2 0.9 104 City of Tukwila City Council Finance & Governance Committee Meeting Minutes November 14, 2022 - 5:30 p.m. - Hybrid Meeting; Duwamish Conference Room & MS Teams Councilmembers Present: Staff Present: I. BUSINESS AGENDA De'Sean Quinn, Chair; Kate Kruller, Cynthia Delostrinos Johnson Vicky Carlsen, David Cline, Rachel Bianchi, Julie Hatley, Tony Cullerton, David Rosen, Pete Mayer A. Contract Amendment: Prosecution Services Staff is seeking approval of a contract amendment with Walls Law Firm to extend prosecution services through June 30, 2023 at a continued rate of $23,000 per month. Committee Recommendation t Unanimous approval. Forward to November 21, 2022 Regular Consent Agenda. B. Ordinances: Fire and Park Impact Fees Staff is seeking approval of ordinances to update Fire and Park Impact Fees beginning April 1, 2023. Committee Recommendation Unanimous approval. Forward to November 28, 2022 Committee of the Whole. C. Non -Represented Employees Market and Compression Study Staff is seeking approval to include funding for a non -represented employee market and compression study in the 2023 budget. This was intended to be completed in 2020 but was postponed due to pandemic response and budget cuts. Committee Recommendation Unanimous approval. Forward to November 14, 2022 Committee of the Whole. D. American Rescue Plan Act Expenditure Report January -June Staff presented the report. Item(s) for follow-up: • Explain CPI impact to ARPA allocations in next report. Committee Recommendation Discussion only. E. Resolution: 2023 Legislative Agenda 105 106 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/28/22 JB 12/5/22 JB ITEM INFORMATION ITEM No. 4.D. STAFF SPONSOR: ERIC DREVER ORIGINAL AGENDA DATE: 11/28/22 AGENDA ITEM TITLE Association of Washington Cities' Alternative Response Grant Award CATEGORY ® Discussion Mtg Date 11/28/22 Motion Mtg Date 12/5 Resolution Mtg Date ❑ Ordinance Mtg Date U Bid Award Mtg Date ❑ Public Hearing ❑ Other Mtg Date Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ® Police ❑ PW SPONSOR'S SUMMARY The Tukwila Police Department has been awarded a no -match grant via the Association of Washington Cities that will fund an additional Mental Health Professional Co -Responder for December 1st 2022 through June 30th 2023. Due to the amount of the grant award ($92,083) Council approval is required before the Department can accept. Council is being asked to authorize the Mayor to sign the award's acceptance contract. REVIEWED BY ❑ Trans&lnfrastructure Svcs ® Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. DATE: 11/28/22 ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR/ADMIN. Police Department COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED $ APPROPRIATION REQUIRED $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/28/22 12/5/22 MTG. DATE ATTACHMENTS 11/28/22 Informational Memorandum dated 11/21/2022 AWC Alternative Response Grant Agreement Minutes from the Community Services and Safety Committee meeting of 11/28/22 (distributed separately) 12/5/22 107 108 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Services & Safety Committee FROM: Eric Dreyer, Chief of Police BY: Jake Berry, Public Safety Budget Analyst CC: Mayor Ekberg DATE: November 21st 2022 SUBJECT: Grant to Provide Additional MHP Co -Responder Services ISSUE The Tukwila Police Department has been awarded a grant through the Association of Washington Cities that provides funding for an additional Mental Health Professional (MHP) to respond in -field to help those in crisis and/or experiencing traumatic events. BACKGROUND The Tukwila Police Department's MHP pilot program has been serving the community for several months, responding to provide help in -field as well as offering coaching and advice to officers. However, our region continues to experience a crush of community members finding themselves in need of services beyond what one MHP can provide. DISCUSSION The Association of Washington Cities, in partnership with the Washington Healthcare Authority and funded by the Washington State budget, is administering this no -match grant with the explicit purpose of funding city police departments to create new programs that address the rising levels of mental crisis in Washington state. The grant, as awarded, will provide funding that allows Tukwila to contract with Sound Mental Health for a second MHP whose efforts will augment our current MHP. The grant funds can be used starting December 1st 2022 and the grant period ends June 30th 2023. At that time, the Police Department will consider the impact of the second MHP Co - Responder and, if appropriate, consider the next steps required to continue the second MHP. Per the AWC, they cannot guarantee that the state will provide funding for this program after June 30th 2023 but they do expect to pursue it. FINANCIAL IMPACT The total grant award for the seven-month period is $92,083. There is no matching requirement and the Police Department does not expect to expend funds beyond the granted amount with the exception of unforeseen incidentals. RECOMMENDATION The Committee is being asked to review the attached grant agreement and forward a recommendation to the November 28th 2022 Committee of the Whole meeting and subsequent December 5th 2022 Regular Meeting. ATTACHMENTS Association of Washington Cities Alternative Response Grant Agreement (as reviewed and approved by Tukwila's City Attorney 109 110 Alternative Response Team Grant Grantee Funding Agreement Association of Washington Cities Grant ("Grant") with City of Tukwila through The Alternative Response Team Grant. A program funded under Senate Bill 5693, Section 215§103a For Jurisdiction Name City of Tukwila Program Description Co -Responder Program Start date: December 1, 2022 End date: June 30, 2023 111 112 FACE SHEET Grant Number: ART22-13 Association of Washington Cities (AWC) Alternative Response Team Grant (ARTG) Senate Bill 5693, Section 215§103a went into effect on July 1, 2022. The purpose of this grant is to assist cities with the documented costs to create co -responder programs within different alternative diversion models including law enforcement assisted diversion programs, community assistance referral and education programs, and as part of mobile crisis teams. AWC has determined that entering into a Contract with City of Tukwila will meet the goals of these funds. 1. Grantee 2. Grantee Doing Business As (optional) 3. Grantee Representative 4. AWC Representative Jacob Ewing 1076 Franklin Street SE Special Projects Coordinator Olympia, WA (360) 753-4137 98501 jacobe@awcnet.org 5. Grant Amount $92,083 6. Start Date December 1, 2022 7. End Date June 30, 2023 8. Tax ID # 9. Grant Purpose Establish an alternative response team program as described in Attachment A. AWC and the Grantee, as defined above, acknowledge and accept the terms of this Grant and attachments and have executed this Grant on the date below to start as of the date and year referenced above. The rights and obligations of both parties to this Grant are governed by this Grant and the following other documents incorporated by reference: Grantee General Terms and Conditions including Attachment "A" — Scope of Work; Attachment "B" — Project Costs Worksheet; Attachment "C" — Grantee Data Collection; Attachment (D) — Grantee Agent(s). FOR GRANTEE FOR Association of Washington Cities Date Date Last revision 11/23/2021 1113 Alternative Response Team Grant Grantee Funding Agreement 1. SUBCONTRACT MANAGEMENT The Representative for each of the parties shall be responsible for and shall be the Grant contact person for all communications and billings regarding the performance of this Grant. The Representative for AWC and their contact information are identified on the Face Sheet of this Grant. The Representative for the Grantee and their contact information are identified on the Face Sheet of this Grant. 2. TERM The initial term of the Contract shall be December 1, 2022, and continue through June 30, 2023, unless terminated sooner as provided herein. The term of the contract may be extended by an amendment signed by both parties. 3. PAYMENT AWC shall pay an amount not to exceed $92,083.00 for the performance of all things necessary for or incidental to the performance of work as set forth in the ARTG Application and described in Attachment A. Grantee's compensation for services rendered shall be based on the completion of duties as outlined in the ARTG application, in Attachment A, in accordance with the following sections. 4. BILLING PROCEDURES AND PAYMENT AWC will reimburse Grantee upon acceptance of services provided and receipt of properly completed invoices, which shall be submitted to the Representative for AWC not more often than monthly. Grantee will use the invoice form provided by AWC to request reimbursement. The invoices shall describe and document, to AWC's satisfaction, a description of the work performed, the progress of the project, and fees. The invoice shall include the Grant Number ART22-13. A receipt must accompany any single expenses in the amount of $50.00 or more in order to receive reimbursement. If errors are found in the submitted invoice or supporting documents, AWC will notify the Grantee to make corrections in a timely manner, resubmit the invoice and/or supporting documentation as requested, and notify AWC. Payment shall be considered timely if made by AWC within thirty (30) calendar days after receipt of properly completed invoices. Payment shall be sent to the address designated by the Grantee. AWC may, in its sole discretion, terminate the Grant or withhold payments claimed by the Grantee for services rendered if the Grantee fails to satisfactorily comply with any term or condition of this Grant. No payments in advance or in anticipation of services or supplies to be provided under this Grant shall be made by AWC. Duplication of Billed Costs The Grantee shall not bill AWC for services performed under this Grant, and AWC shall not pay the Grantee, if the Grantee is entitled to payment or has been or will be paid by any other source, including grants, for that service. This does not include fees charged for summer recreation programs. Disallowed Costs The Grantee is responsible for any audit exceptions or disallowed costs incurred by its own organization or that of its Grantees. Final Reimbursement and Reporting Deadline When the project is completed the Grantee must submit a final report and supporting documents needed to close out the project no later than June 30, 2023. AWC shall withhold 10 percent (10%) from each payment until acceptance by AWC of the final reporting from the Grantee has been submitted and verified. 114 Alternative Response Team Grant Grantee Funding Agreement Upon expiration of the Contract, any claims for payment for costs due and payable under this Contract that are incurred prior to the expiration date must be submitted by the Contractor to AWC within thirty (30) calendar days after the Contract expiration date. AWC is under no obligation to pay any claims that are submitted thirty-one (31) or more calendar days after the Contract expiration date ("Belated Claims"). AWC will pay Belated Claims at its sole discretion, and any such potential payment is contingent upon the availability of funds. 5. GRANTEE DATA COLLECTION/REPORTING REQUIREMENTS Grantee will submit reports, in a form and format to be provided by AWC (See Attachment C). Data must be provided to AWC along with final billing. 6. AGENTS Agent(s) in this contract refers to any third -party entity and its employees that the Grantee has subcontracted with to provide services funded through this agreement. The Grantee is responsible for ensuring that any agent complies with the provision herein. Any of the Grantee's agent(s) that will provide services under this contract must be listed in Attachment D — Grantee Agent(s) and must provide proof of insurance per Section 6 of this document. 7. INSURANCE a. Workers' Compensation Coverage. The Grantee shall at all times comply with all applicable workers' compensation, occupational disease, and occupational health and safety laws, statutes, and regulations to the fullest extent applicable. This requirement includes the purchase of industrial insurance coverage for the Grantee's employees, as may now hereafter be required of an "employer" as defined in Title 51 RCW. Such workers' compensation and occupational disease requirements shall include coverage for all employees of the Grantee, and for all employees of any subcontract retained by the Grantee, suffering bodily injury (including death) by accident or disease, which arises out of or in connection with the performance of this Grant. Satisfaction of these requirements shall include, but shall not be limited to: i. Full participation in any required governmental occupational injury and/or disease insurance program, to the extent participation in such a program is mandatory in any jurisdiction; ii. Purchase workers' compensation and occupational disease insurance benefits to employees in full compliance with all applicable laws, statutes, and regulations, but only to the extent such coverage is not provided under mandatory governmental program in "a" above, and/or; iii. Maintenance of a legally permitted and governmentally approved program of self- insurance for workers' compensation and occupational disease. Except to the extent prohibited by law, the program of the Grantee's compliance with workers' compensation and occupational disease laws, statutes, and regulations in 1), 2), and 3) above shall provide for a full waiver of rights of subrogation against AWC, its directors, officers, and employees. If the Grantee, or any agent retained by the Grantee, fails to effect and maintain a program of compliance with applicable workers' compensation and occupational disease laws, statutes, and regulations and AWC incurs fines or is required by law to provide benefits to such employees, to obtain coverage for such employees, the Contractor will indemnify AWC for such fines, payment of benefits to Grantee or Grantee employees or their heirs or legal representatives, and/or the cost of effecting coverage on behalf of such employees. Any amount owed AWC by the Grantee pursuant to the indemnity may be deducted from any payments owed by AWC to the Grantee for the performance of this Grant. 115 Alternative Response Team Grant Grantee Funding Agreement b. Automobile Insurance. In the event that services delivered pursuant to this Grant involve the use of vehicles, owned or operated by the Grantee, automobile liability insurance shall be required. The minimum limit for automobile liability is: $1,000,000 per accident, using a Combined Single Limit for bodily injury and property damage. c. Business Automobile Insurance. In the event that services performed under this Grant involve the use of vehicles or the transportation of clients, automobile liability insurance shall be required. If Grantee - owned personal vehicles are used, a Business Automobile policy covering a minimum Code 2 "owned autos only" must be secured. If the Grantee's employees' vehicles are used, the Grantee must also include under the Business Automobile policy Code 9, coverage for "non -owned autos." The minimum limits for automobile liability is: $1,000,000 per accident, using a Combined Single Limit for bodily injury and property damage. d. Public Liability Insurance (General Liability). The Grantee shall at all times during the term of this Grant, at its cost and expense, carry and maintain general public liability insurance, including contractual liability, against claims for bodily injury, personal injury, death, or property damage occurring or arising out of services provided under this Grant. This insurance shall cover such claims as may be caused by any act, omission, or negligence of the Grantee or its officers, agents, representatives, assigns or servants. The limits of liability insurance, which may be increased from time to time as deemed necessary by AWC, with the approval of the Grantee (which shall not be unreasonably withheld), shall not be less than as follows: Each Occurrence Products -Completed Operations Limit Personal and Advertising Injury Limit Fire Damage Limit (any one fire) $1,000,000 $2,000,000 $1,000,000 $ 50,000 e. Local Governments that Participate in a Self -Insurance Program. Alternatively, Grantees may maintain a program of self-insurance or participate in a property/liability pool with adequate limits to comply with the Grant insurance requirements or as is customary to the contractor or Grantee's business, operations/industry, and the performance of its respective obligations under this Grant. f. Additional Insured. The Association of Washington Cities, shall be specifically named as an additional insured on all policies, including Public Liability and Business Automobile, except for liability insurance on privately -owned vehicles, and all policies shall be primary to any other valid and collectible insurance. AWC may waive the requirement to be specially named as an additional insured on policies, including Public Liability and Business Automobile, provided that the Grantee provides: (1) a description of its self- insurance program, and (2) a certificate and/or letter of coverage that outlines coverage limits and deductibles. All self-insured risk management programs or self-insured/liability pools must comply with RCW 48.62, the requirements of the Office of Risk Management and Local Government Self Insurance Program, the Washington State Auditor's reporting requirements and all related federal and state regulations. Grantees participating in a joint risk pool shall maintain sufficient documentation to support the aggregate claim liability information reported on the balance sheet. AWC, its agents, and employees need not be named as additional insured under a self-insured property/liability pool, if the pool is prohibited from naming third parties as additional insured. 116 Alternative Response Team Grant Grantee Funding Agreement Proof of Insurance. Certificates and or evidence satisfactory to the AWC confirming the existence, terms and conditions of all insurance required above shall be delivered to AWC within five (5) days of the Grantee's receipt of Authorization to Proceed. h. General Insurance Requirements. Grantee shall, at all times during the term of the Grant and at its cost and expense, buy and maintain insurance of the types and amounts listed above. Failure to buy and maintain the required insurance may result in the termination of the Grant at AWC's option. By requiring insurance herein, AWC does not represent that coverage and limits will be adequate to protect Grantee and such coverage and limits shall not limit Grantee's liability under the indemnities and reimbursements granted to AWC in this Grant. Grantee shall include all agents of the Grantee as insureds under all required insurance policies, or shall furnish proof of insurance and endorsements for each agent. Agent(s) must comply fully with all insurance requirements stated herein. Failure of agent(s) to comply with insurance requirements does not limit Grantee's liability or responsibility. 7. ORDER OF PRECEDENCE In the event of an inconsistency in this Contract, the inconsistency shall be resolved by giving precedence in the following order: • Applicable federal and state of Washington statutes and regulations • Grant and Grantee General Terms and Conditions • Attachment A — ARTG Application & Scope of Work • Attachment B — Budget and Project Costs Worksheet • Attachment C — Grantee Reporting Requirements • Attachment D — Grantee Agent(s) 117 Alternative Response Team Grant Grantee Funding Agreement GRANTEE GENERAL TERMS AND CONDITIONS 1. Access to Data. In compliance with Chapter 39.26 RCW, the Grantee shall provide access to data generated under this Grant to AWC, and to the extent necessary to comply with RCW 39.26, the Joint Legislative Audit and Review Committee, and the State Auditor at no additional cost. This includes access to all information that supports the findings, conclusions, and recommendations of the Grantee's reports, including computer models and methodology for those models. 2. Alterations and Amendments. This Grant may be amended only by mutual agreement of the parties in writing. Such amendments shall not be binding unless they are in writing and signed by personnel authorized to bind each of the parties. 3. Americans with Disabilities Act (ADA) of 1990, Public Law 101-336, also referred to as the "ADA" 28 CFR Part 35. In relation to this Grant, the Grantee must comply with the ADA, which provides comprehensive civil rights protection to individuals with disabilities in the areas of employment, public accommodations, state and local government services, and telecommunications. 4. Assignment. Neither this Grant, nor any claim arising under this Grant, shall be transferred or assigned by the Grantee without prior written consent of AWC. 5. Assurances. AWC and the Grantee agree that all activity pursuant to this Grant will be in accordance with all applicable current federal, state and local laws, rules and regulations. 6. Attorney's Fees. In the event of litigation or other action brought to enforce contract terms, each party agrees to bear its own attorney's fees and costs. 7. Budget Revisions. Any monetary amount budgeted by the terms of this Grant for various activities and line item objects of expenditure, as outlined in Attachment B — Budget and Project Costs Worksheet, may be revised without prior written approval of AWC, so long as the revision is no more than ten percent (10%) of the original line item amount and the increase in an amount is offset by a decrease in one or more other amounts equal to or greater than the increase. All other budget revisions exceeding ten percent (10%) shall only be made with the prior written approval of AWC. Grantee will use the funding change request form provided by AWC to request these budget revisions. 8. Certification Regarding Wage Violations. The Grantee certifies that within three (3) years prior to the date of execution of this Grant, Grantee has not been determined by a final and binding citation and notice of assessment issued by the Washington Department of Labor and Industries or through a civil judgment entered by a court of limited or general jurisdiction to have willfully violated, as defined in RCW 49.48.082, any provision of RCW chapters 49.46, 49.48, or 49.52. The Grantee further certifies that it will remain in compliance with these requirements during the term of this Grant. Grantee will immediately notify AWC of any finding of a willful violation entered by the Washington Department of Labor and Industries or through a civil judgment entered by a court of limited or general jurisdiction entered during the term of this Grant. 9. Change in Status. In the event of substantive change in the legal status, organizational structure, or fiscal reporting responsibility of the Grantee, Grantee agrees to notify AWC of the change. Grantee shall provide notice as soon as practicable, but no later than thirty (30) days after such a change takes effect. 10. Copyright Provisions. Unless otherwise provided, all Materials produced under this Contract shall be considered "works for hire" as defined by the U.S. Copyright Act and copyright shall be owned by the AWC. AWC shall be considered the author of such Materials. If Materials are not considered "works for hire", Grantee hereby irrevocably assigns all right, title, and interest in Materials, including all intellectual property rights, to AWC effective from the moment of creation of such Materials. 118 Alternative Response Team Grant Grantee Funding Agreement Materials means all items in any format and includes, but is not limited to, data, reports, documents, pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes, and/or sound reproductions. Copyright ownership includes the right to patent, register and the ability to transfer these rights. Grantee understands that, except where otherwise agreed to in writing or approved by the AWC or designee, all original works of authorship produced under this Contract shall carry a Creative Commons Attribution License, version 4.0 or later. All Materials the Grantee has adapted from others' existing openly licensed resources must be licensed with the least restrictive open license possible that is not in conflict with existing licenses. For Materials that are delivered under the Contract, but that incorporate pre-existing materials not produced under the Contract, Grantee will license the materials to allow others to translate, reproduce, distribute, prepare derivative works, publicly perform, and publicly display. If the Grantee would like to limit these pre- existing portions of the work to non-commercial use, the Creative Commons Attribution-NonCommercial- ShareAlike license, version 4.0 or later, is acceptable for these specific sections. The Grantee warrants and represents that Grantee has all rights and permissions, including intellectual property rights, moral rights and rights of publicity, necessary to apply such a license. The Grantee shall exert all reasonable effort to advise the AWC, at the time of delivery of data furnished under this Contract, of all known or potential invasions of privacy contained therein and of any portion of such document which was not produced in the performance of this Contract. AWC shall receive prompt written notice of each notice or claim of infringement received by the Grantee with respect to any data delivered under this Contract. AWC shall have the right to modify or remove any restrictive markings placed upon the data by the Grantee. 11. Covenant Against Contingent Fees. The Grantee warrants that no person or selling agent has been employed or retained to solicit or secure this Grant upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees or bona fide established agent maintained by the Grantee for the purpose of securing business. AWC shall have the right, in the event of breach of this clause by the Grantee, to annul this Grant without liability or, in its discretion, to deduct from the contract price or consideration or recover by other means the full amount of such commission, percentage, brokerage or contingent fees. 12. Disputes. In the event that a dispute arises under this Grant, the parties will use their best efforts to amicably resolve any dispute, including use of alternative dispute resolution options. 13. Duplicate Payment. AWC shall not pay the Grantee, if the Grantee has charged or will charge the State of Washington or any other party under any other contract or agreement, for the same services or expenses. 14. Entire Agreement. This Grant contains all the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this Grant shall be deemed to exist or to bind any of the parties hereto. 15. Ethical Conduct. Neither the Grantee nor any employee or agent of the Grantee shall participate in the performance of any duty or service in whole or part under this Grant in violation of, or in a manner that violates any provision of the Ethics in Public Service law at Chapter 42.52 RCW, RCW 42.17A.550, RCW 42.17A.555, and 41.06.250 prohibiting the use of public resources for political purposes. 16. Governing Law and Venue. This Grant shall be construed and interpreted in accordance with the laws of the State of Washington and the venue of any action brought hereunder shall be in Superior Court for Thurston County. 119 Alternative Response Team Grant Grantee Funding Agreement 17. Indemnification. To the fullest extent permitted by law, Grantee shall indemnify, defend and hold harmless AWC and all officials, agents, and employees of AWC, from and against all claims for injuries or death arising out of or resulting from the performance of this Grant. "Claim" as used in this Grant, means any financial loss, claim, suit, action, damage, or expense, including but not limited to attorney's fees, attributable for bodily injury, sickness, disease, or death, or injury to or destruction of tangible property including loss of use resulting therefrom. Additionally, -claims" shall include but not be limited to, assertions that the use or transfer of any software, book, document, report, film, tape or sound reproduction or material of any kind, delivered hereunder, constitutes an infringement of any copyright, patent, trademark, trade name, or otherwise results in an unfair trade practice or in unlawful restraint of competition. Grantee's obligation to indemnify, defend and hold harmless includes any claim by Grantee's agents, employees, representatives, or any subcontractor or its employees. Grantee expressly agrees to indemnify, defend, and hold harmless AWC for any and all claims, costs, charges, penalties, demands, losses, liabilities, damages, judgments, or fines out of or incident to Grantee's or its agent's performance or failure to perform the Grant. Grantee's obligation to indemnify, defend, or hold harmless AWC shall not be eliminated or reduced by any actual or alleged concurrent negligence by AWC, or their agents, employees, or officials. Grantee waives its immunity under Title 51 RCW to the extent it is required to indemnify, defend and hold harmless AWC, and their agents, employees, or officials. 18. Independent Capacity of the Grantee. The parties intend that an independent Grantee relationship will be created by this Grant. The Grantee and his/her employees or agents performing under this Grant are not employees or agents of AWC. The Grantee will not hold itself out as nor claim to be an officer or employee of AWC, nor will the Grantee make any claim or right, privilege, or benefit which would accrue to such employee under law. Conduct and control of the work will be solely with the Grantee. 19. Licensing and Accreditation Standards. The Grantee shall comply with all applicable local, state, and federal licensing, accreditation and registration requirements/standards, necessary to the performance of this Grant. 20. Limitation of Authority. Only AWC or AWC's delegate by writing (delegation to be made prior to action) shall have the express, implied, or apparent authority to alter, amend, modify, or waive any clause or condition of this Grant. Furthermore, any alteration, amendment, modification, or waiver or any clause or condition of this Grant is not effective or binding unless made in writing and signed by AWC. 21. Non -Discrimination. The Grantee shall comply with all the federal and state non-discrimination laws, regulations and policies, which are otherwise applicable to AWC. Accordingly, no person shall, on the ground of sex, race, creed, religion, color, national origin, marital status, families with children, age, veteran or military status, sexual orientation, gender expression, gender identity, disability, or the use of a trained dog guide or service animal, be unlawfully excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any activity performed by the Grantee and its agents under this Grant. The Grantee shall notify AWC immediately of any allegations, claims, disputes, or challenges made against it under non-discrimination laws, regulations, or policies, or under the Americans with Disabilities Act. In the event of the Grantee's noncompliance or refusal to comply with this nondiscrimination provision, this Grant may be rescinded, cancelled or terminated in whole or part, and the Grantee may be declared ineligible for further contracts with AWC. 22. Overpayments. Grantee shall refund to AWC the full amount of any overpayment under this Grant within thirty (30) calendar days of written notice. If Grantee fails to make a prompt refund, AWC may charge Grantee one percent (1%) per month on the amount due until paid in full. 120 Alternative Response Team Grant Grantee Funding Agreement 23. Public Disclosure. Grantee acknowledges that AWC is subject to the Washington State Public Records Act, Chapter 42.56 RCW, and AWC acknowledges that the Grantee is subject to the Washington State Public Records Act, Chapter 42.56 RCW, and that this Grant shall be a public record as defined in RCW 42.56. Any specific information that is claimed by either party to be confidential or proprietary must be clearly identified as such by that party. To the extent consistent with chapter 42.56 RCW, each party shall attempt reasonably to maintain the confidentiality of all such information marked confidential or proprietary. If a request is made to view such information, the party receiving the public records request will notify the other party of the request and the date that such records will be released to the requester unless the other party obtains a court order enjoining that disclosure. If such party fails to obtain the court order enjoining disclosure, the party receiving the records request will release the requested information on the date specified. 24. Publicity. The Grantee agrees to submit to AWC all advertising and publicity matters relating to this Grant which in the AWC's judgment, AWC's name can be implied or is specifically mentioned. The Grantee agrees not to publish or use such advertising and publicity matters without the prior written consent of AWC. 25. Registration with Department of Revenue. The Grantee shall complete registration with the Department of Revenue and be responsible for payment of all taxes due on payments made under this Grant. 26. Records Maintenance. The Grantee shall maintain all books, records, documents, data and other evidence relating to this Grant and performance of the services described herein, including but not limited to accounting procedures and practices which sufficiently and properly reflect all direct and indirect costs of any nature expended in the performance of this Grant. Grantee shall retain such records for a period of six years following the date of final payment. At no additional cost, these records, including materials generated under the Grant, shall be subject at all reasonable times to inspection, review or audit by the AWC, personnel duly authorized by AWC, the Office of the State Auditor, and federal and state officials so authorized by law, regulation or agreement. If any litigation, claim or audit is started before the expiration of the six (6) year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. 27. Right of Inspection. The Grantee shall provide right of access to its facilities utilized under this Grant to AWC or any of its officers responsible for executing the terms of this Grant at all reasonable times, in order to monitor and evaluate performance, compliance, and/or quality assurance under this Grant on behalf of AWC. All inspections and evaluations shall be performed in such a manner that will not unduly interfere with the Grantee's business or work hereunder. 28. Severability. The provisions of this Grant are intended to be severable. If any term or provision is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of the Contract. 29. Subcontracting. Neither the Grantee nor any agent of the Grantee shall enter into subcontracts for any of the work contemplated under this Grant without obtaining prior written approval of AWC. Grantee is responsible to ensure that all terms, conditions, assurances and certifications set forth in this Grant are included in any and all Subcontracts. In no event shall the existence of the subcontract operate to release or reduce liability of the Grantee to the AWC for any breach in the performance of the Grantee's duties. This clause does not include contracts of employment between the Grantee and personnel assigned to work under this Grant. If, at any time during the progress of the work, AWC determines in its sole judgment that any agent of the Grantee is incompetent, AWC shall notify the Grantee, and the Grantee shall take immediate steps to terminate the agent's involvement in the work. The rejection or approval by AWC of any agent or the termination of an agent shall not relieve the Grantee of any of its responsibilities under the Grant, nor be the basis for additional charges to AWC. 121 Alternative Response Team Grant Grantee Funding Agreement 30. Taxes. All payments accrued on account of payroll taxes, unemployment contributions, any other taxes, insurance or other expenses for the Grantee or its staff shall be the sole responsibility of the Grantee. 31. Technology Security Requirements. The security requirements in this document reflect the applicable requirements of Standard 141.10 (https://ocio.wa.gov/policies) of the Office of the Chief Information Officer for the state of Washington, which by this reference are incorporated into this agreement. The Grantee acknowledges it is required to comply with WaTech Office of Chief Information Officer (0010) IT Security Policy 141 and OCIO IT Security Standard 141.10, Securing Information Technology Assets. OCIO IT Security Standard 141.10, Securing Information Technology Assets, applies to all AWC assets stored as part of a service, application, data, system, portal, module, components or plug-in product(s) that are secured as defined by the WaTech OCIO's IT Security Policy 141 and OCIO IT Security Standard 141.10, Securing Information Technology Assets. As part of OCIO IT Security Standard 141.10, a design review checklist and/or other action may be required. These activities will be managed and coordinated between AWC and the Grantee. Any related costs to performing these activities shall be at the expense of the Grantee. Any such activities and resulting checklist and/or other products must be shared with AWC. 32. Termination for Convenience. Except as otherwise provided in this Grant, AWC may, by ten (10) days written notice, beginning on the second day after the mailing, terminate this Grant in whole or in part. The notice shall specify the date of termination and shall be conclusively deemed to have been delivered to and received by the Grantee as of midnight the second day of mailing in the absence of proof of actual delivery to and receipt by the Grantee. If this Grant is so terminated, AWC shall be liable only for payment required under the terms of the Grant for services rendered or goods delivered prior to the effective date of termination. 33. Termination for Default. In the event AWC determines the Grantee has failed to comply with the conditions of this Grant in a timely manner, AWC has the right to suspend or terminate this Grant. AWC shall notify the Grantee in writing of the need to take corrective action. If corrective action is not taken within thirty (30) days, the Grant may be terminated. AWC reserves the right to suspend all or part of the Grant, withhold further payments, or prohibit the Grantee from incurring additional obligations of funds during investigation of the alleged compliance breach and pending corrective action by the Grantee or a decision by AWC to terminate the Contract. In the event of termination, the Grantee shall be liable for damages as authorized by law including, but not limited to, any cost difference between the original Grant and the replacement or cover Grant and all administrative costs directly related to the replacement Grant, e.g., cost of the competitive bidding, mailing, advertising and staff time. The termination shall be deemed to be a "Termination for Convenience" if it is determined that the Grantee: (1) was not in default; or (2) failure to perform was outside of his or her control, fault or negligence. The rights and remedies of the AWC provided in this Grant are not exclusive and are in addition to any other rights and remedies provided by law. 34. Termination Due to Funding Limitations or Contract Renegotiation, Suspension. In the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any way after the effective date of this Grant and prior to normal completion of this Grant, with the notice specified below and without liability for damages: a. At AWC's discretion, AWC may give written notice of intent to renegotiate the Grant under the revised funding conditions. b. At AWC's discretion, AWC may give written notice to Grantee to suspend performance when AWC determines there is reasonable likelihood that the funding insufficiency may be resolved in a timeframe that would allow Grantee's performance to be resumed. 122 Alternative Response Team Grant Grantee Funding Agreement (1) During the period of suspension of performance, each party will inform the other of any conditions that may reasonably affect the potential for resumption of performance. (2) When AWC determines that the funding insufficiency is resolved, it will give the Grantee written notice to resume performance, and Grantee shall resume performance. (3) Upon the receipt of notice under b. (2), if Grantee is unable to resume performance of this Grant or if the Grantee's proposed resumption date is not acceptable to AWC and an acceptable date cannot be negotiated, AWC may terminate the Grant by giving written notice to the Grantee. The parties agree that the Grant will be terminated retroactive to the date of the notice of suspension. AWC shall be liable only for payment in accordance with the terms of this Grant for services rendered prior to the retroactive date of termination. c. AWC may immediately terminate this Grant by providing written notice to the Grantee. The termination shall be effective on the date specified in the termination notice. AWC shall be liable only for payment in accordance with the terms of this Grant for services rendered prior to the effective date of termination. No penalty shall accrue to AWC in the event the termination option in this section is exercised. d. For purposes of this section, "written notice" may include email. 35. Termination Procedure. Upon termination of this Grant the AWC, in addition to other rights provided in this Grant, may require the Grantee to deliver to AWC any property specifically produced or acquired for the performance of such part of this Contract as has been terminated. The provisions of the "Treatment of Assets" clause shall apply in such property transfer. The AWC shall pay to the Grantee the agreed upon price, if separately stated, for completed work and services accepted by AWC and the amount agreed upon by the Grantee and AWC for (a) completed work and services for which no separate price is stated, (b) partially completed work and services, (c) other property or services which are accepted by AWC, and (d) the protection and preservation of the property, unless the termination is for default, in which case AWC shall determine the extent of the liability. Failure to agree with such determination shall be a dispute within the meaning of the "Disputes" clause for this Grant. The AWC may withhold from any amounts due to the Grantee such sum as AWC determines to be necessary to protect AWC against potential loss or liability. The rights and remedies of AWC provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law under this Grant. After receipt of a notice of termination, and except as otherwise directed by the AWC, the Grantee shall: a. Stop work under this Grant on the date and to the extent specified, in the notice; b. Place no further orders or subcontracts for materials, services or facilities except as may be necessary for completion of such portion of the work under the Grant that is not terminated; c. Assign to AWC, in the manner, at the times, and to the extent directed by the AWC, all rights, title, and interest of the Grantee under the orders and subcontracts in which case AWC has the right, at its discretion, to settle or pay any or all claims arising out of the termination of such orders and subcontracts; d. Settle all outstanding liabilities and all claims arising out of such termination of orders and subcontracts, with the approval or ratification of AWC to the extent the AWC may require, which approval or ratification shall be final for all the purposes of this clause; e. Transfer title to AWC and deliver, in the manner, at the times and to the extent as directed by AWC, any property which, if the Grant had been completed, would have been required to be furnished to AWC; f. Complete performance of such part of the work not terminated by AWC; and 123 Alternative Response Team Grant Grantee Funding Agreement g. Take such action as may be necessary, or as AWC may direct, for the protection and preservation of the property related to this Grant which, in is in the possession of the Grantee and in which AWC has or may acquire an interest. 36. Waiver. A failure by either part to exercise its rights under this Grant shall not preclude that party from subsequent exercise of such rights and shall not constitute a waiver of any other rights under this agreement. Waiver of any default or breach shall not be deemed to be a waiver of any subsequent default or breach. Any waiver shall not be construed to be a modification of the terms of this Grant unless stated to be such in writing and signed by personnel authorized to bind each of the parties. 124 ARTG Application & Scope of Work PURPOSE Attachment A Senate Bill 5693, Section 215§103a went into effect on July 1, 2022. The purpose of this grant is to assist cities with the documented costs to create co -responder programs within different alternative diversion models including law enforcement assisted diversion programs, community assistance referral and education programs, and as part of mobile crisis teams. CONTRACTOR RESPONSIBILITIES GRANTEE is required to implement the Alternative Response Team Grant (ARTG) Program as described in their application for funding, with no unapproved substantive derivations. Requests for changes to this scope of work, or services laid out in the applicant's application can be made to Jacob Ewing, Special Projects Coordinator at jacobe@wacities.org. This program shall include the following elements as central features of their program: • Grant recipients must establish a co -responder team using a alternative diversion model including law enforcement assisted diversion program, community assistance referral and education program, or a mobile crisis team. In the event that there is a change in the contract or program management staff paid for by this grant, it is expected that GRANTEE will notify AWC of the change to include the name and contact information for the new staff member. If GRANTEE fails to perform to the standards set forth above, AWC remains able to remedy noncompliance as outlined in the grant document, including provisions for suspension, termination and/or recapture of funds already paid to the grantee. PROGRAM AS DESCRIBED IN ARTG APPLICATION The proposed funds would help the Police Department either place a second Co -Responder for the police department in partnership with Sound Health, or to provide the funding to make the Co -Responder a full-time employee with the City of Tukwila. The current funding cycle for the city is about to end and the budgeting talks place this program in a position to maybe not be funded fully. The goal of this program is to put troubled non-violent people in the hands of behavioral health professionals and divert them from hospitalization or jail into support services. This work is intended to lower re -offense rates, reduce the incidence of incarceration, and result in fewer emergency department or psychiatric hospital visits. Create a path for non -emergency health and safety calls to be redirected to a specialized team made up of a Tukwila Police Officer and a Mental Health Professional. This team will provide de-escalation, diversions, and referrals to appropriate services. 13 125 Attachment B Budget & Project Costs Worksheet Budget (as presented in the ARTG application) Category Cost Administrative City Staffing $7,083.33 Supplies & Equipment Transportation Contracted Services $84,999.67 Professional Services Other TOTAL $92,083 Budget Narrative: We expect that 100% of AWC grant funds will be applied to either an extension to our contract with Sound Mental Health (terms have not yet been negotiated) or to the hiring of a qualified MHP as an employee of the Tukwila Police Department. If Tukwila is able to hire an MHP as an employee of the Police Department, funding in Contracted Services will be $7,083.33. If we continue to partner with Sound Mental Health, the cost for Contracted Services will be approximately $84,999.67. However, If Tukwila is able to hire an MHP as an employee of the Police Department, funding in City Staffing will be $84,999.67 with the balance landing in Contracted Services (the December portion). Because we've been operating as a pilot program, we've already purchased long-term supplies and equipment such as a radio, bullet - resistant vest with clear non -officer marking, a computer, and other necessary equipment. Our MHP currently responds to calls either with a police officer in the officer's vehicle or in a Tukwila shared vehicle. Costs of managing this program as well as overhead costs will be absorbed by existing Tukwila staff and will not impact program funds. 14 126 Attachment C Grantee Reporting Requirements A final program report is due to AWC by June 30, 2022. The final report must contain the following information: • Describe program participants including: o Number of individuals served o Gender (Male, Female, Nonbinary, etc.) of individuals served o Age of individuals served o Veteran status of individuals served o Substance abuse or mental health issues of individuals served o Reason for contact o Outcome of contact (No outcome, referral to services, involuntary transport, etc.) o Long-term outcome of individual receiving services (No outcome, permanent housing, shelter, etc.) • Describe the type of program funded and the geographic area served. • Explain how the program targeted vulnerable individuals. • Explain how the program created greater access for vulnerable individuals to available programs and services. • Discuss program successes and challenges. Additionally, Grantees will submit monthly status reports to AWC. Monthly reports will be due on the last day of each month after the contract goes into effect. The monthly reports will address the following questions: • What is the current state of your program? • Briefly describe the work accomplished over the past month? • What successes has your program seen this past month? • What challenges has your program seen this past month? • Do you have any challenges or issues you need to discuss with AWC? 15 127 Attachment D Grantee Agent(s) List any Agent(s) that will provide program services in a program funded through the ARTG Program. Name of Agent Address 16 128 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/14/22 Vicky 11/21/22 Vicky 11/28/22 Vicky ITEM INFORMATION ITEM No. 4.E. & Spec 2.B. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 11/14/22 AGENDA ITEM TITLE Ordinance adopting the 2023 - 2024 Biennial Budget and a resolution adopting the 2023 - 2028 Capital Improvement Program CATEGORY ® Discussion Mt Date 11/14/22 ❑ Motion Mtg Date ® Resolution Mtg Date 11/28/22 Ordinance Mtg Date 11/28/22 ❑ Bid Award Mtg Date 11 Public Hearing Mt' Date 11/14/22 ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ P&R ❑ Police ❑ PIF SPONSOR'S SUMMARY City Council is being asked to approve an ordinance adopting the 2023 - 2024 Biennial Budget and a resolution adopting the 2023 - 2028 Capital Improvement Program. These items are scheduled for Council consideration at the 11/14/22 Committee of the Whole and 11/21/22 Regular Council meeting. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev. DAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 10/24/22 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONsoR/ADMIN. Finance COMMITTEE Forward to 11/14/22 C.O.W. COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/14/22 Forward to next Regular Meeting for discussion 11/21/22 Forward for further discussion 11/28/22 MTG. DATE ATTACHMENTS 11/14/22 Informational Memorandum dated 10/18/22 Draft Ordinance Draft Resolution Reconciliation of the 2023-2024 Budget Summary to Ordinance Minutes from the Finance & Governance Committee meeting 10/24/22 11/21/22 Final Ordinance Final Resolution 11/28/22 Ordinance & Resolution 129 130 ctv of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; ADOPTING THE BIENNIAL BUDGET OF THE CITY OF TUKWILA FOR THE 2023-2024 BIENNIUM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the preliminary budget of the City of Tukwila for the 2023-2024 biennium was submitted to the City Council in a timely manner for their review; and WHEREAS, a Public Hearing on the proposed budget was advertised and held on November 14, 2022; and WHEREAS, as budget oversight is one of its key legislative responsibilities, the City Council conducted a thorough process to deliberate the proposed 2023-2024 Biennial Budget; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council hereby adopts the document entitled "City of Tukwila 2023- 2024 Biennial Budget," incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.34.120. Section 2. Cost of living adjustments (COLAs) for non -represented employees shall be implemented per the City Council's Compensation Policy. Section 3. A market and compression study for non -represented employees, as included in the 2023-2024 Biennial Budget, is expected to be completed by the end of 2023 and upon completion of the study, compensation will be adjusted perthe market study with an effective date of Jan uary 1, 2020. Adju stmentswill befornon -represented employees on staff when the market study is completed. Section 4. The totals of the estimated revenues and appropriations for each separate fund and the aggregate totals are as follows: CC:Legislative Development\Adopt 2023-2024 Biennial Budget 9-30-22 VC:AY Review and analysis by Andy Youn 131 Total Total Fund Expenditures Revenues 000 General $ 166,485,032 $ 166,485,032 105 Contingency 7,082,148 7,082,148 101 Hotel/Motel 3,530,201 3,530,201 103 City Street 9,326,503 9,326,503 104 Arterial Street 30,749,479 30,749,479 109 Drug Seizure Fund 666,515 666,515 2XX LTGO Debt Service Funds 11,815,404 11,815,404 213 Unlimited Tax G.O. Bonds 9,615,168 9,615,168 206 LID Guaranty 764,958 764,958 233 2013 LID 1,615,678 1,615,678 301 Land Acquisition, Recreation & Park Dev. 4,692,436 4,692,436 302 Facility Replacement 2,533,800 2,533,800 303 General Government Improvements 2,345,128 2,345,128 304 Fire Improvements 600,000 600,000 305 Public Safety Plan 2,738,557 2,738,557 306 City Facilities 6,256,324 6,256,324 401 Water 22,155, 562 22,155, 562 402 Sewer 34,034,242 34,034,242 411 Foster Golf Course 6,094,043 6,094,043 412 Surface Water 28,393,244 28,393,244 501 Equipment Rental 7,945,539 7,945,539 502 Insurance Fund 13,172,855 13,172,855 503 Insurance - LEOFF 1 Fund 959,737 959,737 611 Firemen's Pension 1,694,370 1,694,370 Total All Funds Combined $ 375,266,924 $ 375,266,924 Section 5. A complete copy of the final budget for 2023-2024, as adopted, together with a copy of this adoptingordinance,shall be kept on file electronically by the City Clerk and accessible from the City's website in accordance with Washington State records retention schedule requirements and City policy, and sh all be made available to the pu blic upon request. A complete copy of the final budget for 2023-2024, as adopted, together with a copy of this adopting ordinance, shall be transmitted by the City Clerk to the Division of Municipal Corporations of the Office of the State Auditorand to the Association of Washington Cities. Section 6. 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; referencesto other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. CC:Legislative Development\Adopt 2023-2024 Biennial Budget 9-30-22 VC:AY Review and analysis by Andy Youn 132 Section 7. 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 8. 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 , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: CC:Legislative Development\Adopt 2023-2024 Biennial Budget 9-30-22 VC:AY Review and analysis by Andy Youn 133 134 ty of Tukwiia Washington Resolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE 2023- 2028 FINANCIAL PLANNING MODEL AND THE CAPITAL IMPROVEMENT PROGRAM FOR GENERAL GOVERNMENT AND THE CITY'S ENTERPRISE FUNDS. WHEREAS, when used in conjunction with the biennial City budget, the Capital Improvement Program (CIP) and the Financial Planning Model for the period of 2023- 2028 are resource documents to help plan directions the City will considerforthe future; and WHEREAS, the Financial Planning Model and Capital Improvement Program are not permanent fixed plans, but are guidelines or tools to help reflect future goals and future resources at the time budgets are being planned; and WHEREAS, the commitment of funds and resources can only be made through the budget process; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City Council hereby adopts the 2023-2028 Financial Planning Model and accompanying Capital Improvement Program, incorporated by this reference as if fully set forth herein. Section 2. A copy of the 2023-2028 Financial Planning Model and accompanying Capital Improvement Program shall be kept on file electronically by the City Clerk and accessiblefrom the City's website in accordan ce with Washington State records retention schedule requirements and City policy, and shall be made available to the public upon request. Section 3. The assumptions, revenues and expenditures will be reviewed and updated biennially, oras necessary, by the City Council. CC: Legislative Development\Financial Planning Model & CIP 10-03-22 GL:AY Review and analysis by Andy Youn Page 1 of 2 135 Section 4. The detail of Capital Improvement Program projects will be reflected in the published Financial Planning Model and Capital Improvement Program 2023-2028. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Thomas McLeod, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney CC: Legislative Development\Financial Planning Model & CIP 10-03-22 GL:AY Review and analysis by Andy Youn Page 2 of 2 136 COUNCIL AGENDA SYNOPSIS Initials Meeting Dale Prepared by Mayor's review Council review 11/14/22 Tony 11/21/22 Tony 11/28/22 Tony ITEM INFORMATION ITEM No. 4.F. & Spec 2.C. STAFF SPONSOR: TONY ORIGINAL AGENDA DATE: 11/14/22 AGENDA ITEM TITLE Proposed ordinance establishing a new Chapter 3 26 of the TMC entitled, "Business and Occupation Tax," and Chapter 3.27 entitled "Business and Occupation Tax Administrative Provisions." CATEGORY ® Discussion Mtg Date 11/14/22 ❑ Motion Mtg Date ❑ Resolution Mtg Date ® Ordinance Mtg Date 11/28/22 ❑ Bid Award Mtg Date ® Public Hearing Mtg Date 11/14/22 ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ P&R ❑ Police ❑ PIF SPONSOR'S SUMMARY On 10/24/22 Finance gave a B&O presentation to the Finance and Governance Committee. Included in the packet was the model ordinance. The same presentation was delivered to COW on 10/24/22. On 11/14/22 we will have the 1st reading of the ordinance and hold a public hearing. Staff is seeking Council approval to adopt the ordinance at the 11/21/22 meeting. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. DATE: 10/24/22 ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONsoR/ADMIN. Finance Department COMMITTEE Discussion only Forward to 11/14/22 C.O.W. COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/14/22 Forward to next Regular Meeting for discussion 11/21/22 Forward for further discussion 11/28/22 MTG. DATE ATTACHMENTS 11/14/22 Informational Memorandum with attachments Draft Ordinance Minutes from the 10/24/22 Finance & Governance Committee meeting 11/21/22 Final Ordinance Updated Q&A document Financial Forecasting document 11/28/22 Ordinance 137 138 City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; ESTABLISHING A NEW CHAPTER 3.26 OF THE TUKWILA MUNICIPAL CODE (TMC) ENTITLED, "BUSINESS AND OCCUPATION TAX"; ESTABLISHING TMC CHAPTER3.27 ENTITLED "BUSINESS AND OCCUPATION TAX ADMINISTRATIVE PROVISIONS"; PROVIDING FOR A REFERENDUM PROCESS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, in 2022, during the creation of the City's 2023-2024 Biennial Budget, the City's long-range forecast identified a structural deficit on the General Fund financial condition resulting from several factors, including the 1% limitation on regular property tax, the sunset of streamlined sales tax mitigation revenue, and the City's increased cost of services that outpace the increase in property and sales tax; and WHEREAS, pu rsuantto RCW 35A.82.020, the City of Tukwila is authorized to impose a business and occupation tax on business activities within the City; and WHEREAS, RCW 35.102.040 requires the City utilize the mandatory provisions of the model ordinances developed by Washington cities when imposing a business and occupation tax and adopting administrative provisions related to the imposition and collection of such a tax, but also allow for flexibility to customize the ordinances based on local goals and policies; and WHEREAS, the model ordinance provides mandatory and standard exemptions for potential inclusion but also gives the City the ability to create certain exemptions from business and occupation tax including an annual gross receipts exemption threshold for small businesses to meet the City's own objectives, exemptions to set economic policy, and exemptions to maintain local control; and WHEREAS, the City Council has determined that imposition of a business and occupation tax as provided herein and providing for uniform administration of the City's tax codes will be in the best interest of the public health, safety, and welfare; CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 1 of 34 139 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Chapter 3.26 of the Tukwila Municipal Code Established. A chapter of the Tukwila Municipal Code entitled "Business and Occupation Tax," to be codified as Tukwila Municipal Code (TMC) Chapter 3.26, is hereby established to read as follows: CHAPTER 3.26 BUSINESS AND OCCUPATION TAX Sections: 3.26.010 Purpose 3.26.020 Exercise of Revenue License Power 3.26.030 Administrative Provisions 3.26.040 Definitions 3.26.050 Imposition of the Tax — Tax or Fee Levied 3.26.070 Multiple Activities Credit When Activities Take Place in One or More Cities with Eligible Gross Receipt Taxes 3.26.075 Deductions to Prevent Multiple Taxation of Manufacturing Activities and Prior to January 1, 2008, Transactions Involving More Than One City with An Eligible Gross Receipts Tax 3.26.076 Assignment of Gross Income Derived from Intangibles 3.26.077 Allocation and Apportionment of Income when Activities Take Place in More than One Jurisdiction 3.26.078 Allocation and Apportionment of Printing and Publishing Income when Activities Take Place in More than One Jurisdiction 3.26.090 Exemptions 3.26.100 Deductions 3.26.120 Tax Part of Overhead 3.26.130 Severability Clause Section 2. Regulations Established. A new TMC Section 3.26.010 is hereby established to read as follows: 3.26.010 Purpose The purpose of this Chapter is to implement Washington Constitution Article XI, Section 12, RCW 35A.11.020, and RCW 35A.82,020, which give municipalities the authority to license for revenue. In the absence of a legal or constitutional prohibition, the City has the power to define taxation categories as they see fit in order to respond to the unique concerns and responsibilities of local government. Section 3. Regulations Established. A new TMC Section 3.26.020 is hereby established to read as follows: CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 2 of 34 140 3.26.020 Exercise of Revenue License Power The provisions of this Chapter shall be deemed an exercise of the power of the City to license for revenue. The provisions of this Chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedu res and remain in compliance with the City code. Section 4. Regulations Established. A new TMC Section 3.26.030 is hereby established to read as follows: 3.26.030 Administrative Provisions The administrative provisions contained herein and as codified in TMC Chapter3.27 shall be fully applicable to the provisions of this Chapter, except as expressly stated to the contrary herein. Section 5. Regulations Established. A new TMC Section 3.26.040 is hereby established to read as follows: 3.26.040 Definitions In construing the provisions of this chapter, the following definitions shall be applied. Words in the singular number shall include the plural, and the plural shall include the singular. A. "Business" includes all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly. B. "Business and occupation tax" or "gross receipts tax" means a tax imposed on or measured by the value of products, the gross income of the business, or the gross proceeds of sales, as the case may be, and that is the legal liability of the business. C. "Commercial or industrial use" means the following uses of products, including by-products, by the extractor or manufacturer thereof: 1. Any use as a consumer; and 2. The manufacturing of articles, substances or commodities. D. "Director" mean s th e Finance Director of the City or an y officer, agentoremployee of the City designated to act on the Director's behalf. E. "Delivery" means thetransferofpossession oftangible personal property between the seller and the buyerorthe buyer's representative. Delivery to an employee of a buyer is considered delivery to the buyer. Transfer of possession of tangible personal property occurs when the buyer or the buyer's representative first takes physical control of the property or exercises dominion and control overthe property. Dominion and control means the buyer has the ability to put the property to the buyer's own purposes. It means the buyer or the buyer's representative has made the final decision to accept or reject the property, and the seller has no further right to possession of the property and the buyer has no right CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 3 of 34 141 to return the property to the seller, other than undera warranty contract.A buyer does not exercise dominion and control over tangible personal property merely by arranging for shipment of the property from the seller to itself. A buyer's representative is a person, other than an employee of the buyer, who is authorized in writing by the buyerto receive tangible personal property and take dominion and control by making the final decision to acceptor reject the property. Neither a shipping company nor a seller can serve as a buyer's representative. It is immaterial where the contract of sale is negotiated or where the buyer obtains title to the property. Delivery terms and other provisions of the Uniform Commercial Code (Title 62A RCW) do not determine when or where delivery of tangible personal property occurs for purposes of taxation. F. "Digital automated service," "digital code," and "digital goods" havethe same meaning as in RCW 82.04.192 as now in effector as may be subsequently amended or recodified. G. "Digital products" means digital goods, digital codes, digital automated services, and the services described in RCW 82.04.050(2)(g) and (6)(b) as now in effector as may be subsequently amended or recodified. H. "Eligible gross receipts tax" means a tax which: 1. Is imposed on the act or privilege of engaging in business activities within TMC Section 3.26.050; and 2. Is measured by the gross volume of business, in terms of gross receipts and is not an income tax or value added tax; and 3. Is not, pursuantto law or custom, separately stated from the sales price; and 4. Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax measured byvolu me orweight, orcon cession charge, orpaymentforthe use and enjoyment of property, property right or a privilege; and 5. Is a tax imposed by a local jurisdiction, whether within or without the State of Washington, and notbya Cou ntry, State, Province, oranyother non -local jurisdiction above the County level. I. "Engaging in business" means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves outto the public as conducting such business. 1. This section sets forth examples of activities that constitute engaging in business in the City, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimis business activities in the City without having to registerand obtain a business license or pay City business and occupation taxes. The activities listed in this section are illustrative only and are not intended to narrow the definition of "engaging in business" in TMC Section 3.26.040.1. If an activity is not listed, whether it constitutes engaging in business in the City shall be determined by considering all the facts and circumstances and applicable law. 2. Without being all inclusive, any one of the following activities conducted within the City by a person, or its employee, agent, representative, independent contractor, broker CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 4 of 34 142 or another acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license. a. Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the City. b. Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the City. c. Soliciting sales. d. Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance. e. Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf. f. Installing, constructing, or supervising installation or construction of, real or tangible personal property. g. Soliciting, negotiating, or approving franchise, license, or other similar agreements. h. Collecting current or delinquent accounts. i. Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials. j. Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services including the listing of homes and managing real property. k. Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians. I. Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. m. Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the City, acting on its behalf, or for customers or potential customers. n. Investigating, resolving, or otherwise assisting in resolving customer complaints. o. In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place. p. Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf. CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 5 of 34 143 3. If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person's behalf, engages in no other activities in orwith the City but the following, it need not register and obtain a business license and pay tax. a. Meeting with suppliers of goods and services as a customer. b. Meeting with government representatives in their official capacity, other than those performing contracting or pu rchasing fu nctions. c. Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. This provision does not apply to any board of director member or attendee engaging in business such as a member of a board of directors who attends a board meeting. d. Renting tangible or intangible property as a customer when the property is not used in the City. e. Attending, but not participating in a "trade show" or "multiple vendor events". Persons participating ata trade show sh all review the City's trade show or multiple vendor event ordinances. f. Conducting advertising through the mail. g. Soliciting sales by phone from a location outside the City. 4. A seller located outsidethe City merely delivering goods into th e City by means of common carrier is not required to register and obtain a business license, provided that it engages in no other business activities in the City. Such activities do not include those in TMC Section 3.26.040.1.3. 5. The City expressly intends that engaging in business include any activity sufficient to establish nexus for purposes of applying the tax under the law and the constitutions of the United States and the State of Washington. Nexus is presumed to continue as long as th a taxpayer ben efits from th e activity th atcon stitu ted the original nexus generating contactor subsequent contacts. J. "Extracting" is the activity engaged in by an extractor and is reportable under the extracting classification. K. "Extractor" means every person who from the person's own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, for sale or for commercial or industrial use, mines, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product; or fells, cuts or takes timber, Christmas trees, other than plantation Christmas trees, or other natural products; or takes fish, shellfish, or other sea or inland water foods or products. "Extractor" does not include persons performing under contract the necessary labor or mechanical services for others; or persons meeting the definition of farmer. L. "Extractor for Hire" means a person who performs under contract necessary labor or mechanical services for an extractor. CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 6 of 34 144 M. "Gross income of the business" means the value proceeding or accruing by reason of the transaction of the business engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and otheremolu ments however designated, all withoutan ydeduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. N. "Gross proceeds ofsales" mean s th e value proceeding or accru ing from th e sale of tangible personal property, digital goods, digital codes, digital automated services or for other services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discou ntpaid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. 0. "Manufacturing" means the activity conducted by a manufacturer and is reported under the manufacturing classification. P. "Manufacturer," "to manufacture." 1. "Manufacturer" means every person who, either directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from the person's own materials or ingredients any products. When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to less than 20% of the total value of all materials or ingredients that become a part of the finished product, the owner of the equipment or facilities will be deemed to be a processor for hire, and nota manufacturer. 2. "To manufacture" means all activities of a commercial or industrial nature wherein Iabororskill is applied, by hand or machinery, to materials or ingredients so that as a result thereof a new, different or useful product is produced for sale or commercial or industrial use, and shall include: a. The production of special made or custom made articles; b. The production of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician; c. Crushing and/or blending of rock, sand, stone, gravel, or ore; and d. The producing of articles for sale, or for commercial or industrial use from raw materials or prepared materials by giving such materials, articles, and substances of trade or commerce newforms, qualities, propertiesorcombinations induding, but notlimited to, such activities as making, fabricating, processing, refining, mixi ng, slaughtering, packing, aging, curing, mild cu ring, preserving, can ning, and the preparing and freezing of fresh fruits and vegetables. 3. "To manufacture" shall not include the production of digital goods or the production of computer software if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, including the delivery by use of a tangible storage media where thetangible storage media is not physically transferred to the purchaser. CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 7 of 34 145 Q. "Person" means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, co -partnership, jointventure, club, company, joint stock company, business trust, municipal corporation, political subdivision of the State of Washington, corporation, limited liability company, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, non-profit, or otherwise in the United States or any instrumentality thereof. R. "Retailing" means the activity of engaging in making sales at retail and is reported under the retailing classification. S. "Retail Service" shall include the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities: 1. Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, swimming, bungee ju mping, ski lifts and tows, basketball, racquet ball, handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others, when provided to consumers. "Amusement and recreation services" also include the provision of related facilities such as basketball courts, tennis courts, handball courts, swimming pools, and charges made for providing the opportunity to dance. The term "amusement and recreation services" does not include instructional lessons to learn a particular activity such as tennis lessons, swimming lessons, or archery lessons. 2. Abstract, title insurance, and escrow services; 3. Credit bureau services; 4. Automobile parking and storage garage services; 5. Landscape maintenance and horticultural services but excluding (i) horticultural services provided to farmers and (ii) pruning,trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility; 6. Service charges associated with tickets to professional sporting events; and 7. The following personal services: Physical fitness services, tanning salon services, tattoo parlor services, steam bath services, Turkish bath services, escort services, and dating services. 8. The term shall also include the renting or leasing of tangible personal property to consumers and the rental of equipment with an operator. T. "Sale," "casual or isolated sale." 1. "Sale" means any transfer of the ownership of, title to, or possession of, property for a valuable consideration and includes any activity classified as a "sale at retail," "retail sale," or "retail service." It includes renting or leasing, conditional sale contracts, leases with option to purchase, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price. It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not. CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 8 of 34 146 2. "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of property involved on a routine or continuous basis. U. "Sale at retail," "retail sale" 1. "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted)to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers,otherthan asale to a person who presents a resale certificate underRCW 82.04.470 and who: a. Purchases forthe purpose of resale as tangible personal property in the regular course of business without intervening use by such person; or b. Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or c. Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or d. Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directlythrough contact with an ingredient of ferrosilicon; or e. Pu rchases forth e pu rpose of providing the property to consumersaspart of competitive teleph one service, as defined in RCW 82.04.065. Th e term shall include every sale of tangible personal property which is used or consumed orto be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such property is resold or utilized as provided in TMC Section 3.26.040.U.1.a, b, c, d, or e following such use. f. Purchases for the purpose of satisfying the person's obligations under an extended warranty as defined in TMC Section 3.26.040.U.7 if such tangible personal property replaces or becomes an ingredient or component of property covered by the extended warranty without intervening use by such person. 2. "Sale at retail" or "retail sale" also means every sale of tangible personal property to persons engaged in any business activity wh ich is taxable underTMC Section 3.26.050.A.7. 3. "Sale at retail" or "retail sale" shall include the sale of or charge made for tangible personal property consumed and/orfor labor and services rendered in respect to the following: a. The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of orfor consumers, including charges made forthe mere use of CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 9 of 34 147 facilities in respectthereto,butexcludingchargesmadefortheuseofcoin -operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects; b. The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also includethe sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercialfarming or agriculture; c. The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, orunder any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner; d. The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services; and for purposes of this section the term "janitorial services" shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term "janitorial services" does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting; e. The sale of or charge made for labor and services rendered in respect to automobile towing and similarautomotive transportation services, butnotin respecttothose required to report and pay taxes under chapter 82.16 RCW; f. The sale of and charge made for the furnishing of lodging and all other services, except telephone business and cable service, by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occu pancy of real propertyfor a continuous period of one month or more constitutes a rental or lease of real property and nota mere license to use or enjoy the same. For the purposes of this subsection, it shall be presumed that the sale of and charge made for the furnishing of lodging fora continuous period of one month or more to a person is a rental or lease of real property and not a mere license to enjoy the same; g. consumers; The installing, repairing, altering, or improving of digital goods for h. The sale of or charge made for tangible personal property, labor and services to persons taxable under TMC Section 3.26.040.U.3.a, b, c, d, e, f, and g when such sales or charges are for property, labor and services which are used or consumed in CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 10 of 34 148 whole or in part by such persons in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property, labor an d services may be resold aftersuch use or consumption. Nothing contained in this section shall be construed to modify TMC Section 3.26.040.U.1 and nothing contained in TMC Section 3.26.040.U.1 shall be construed to modify this subsection. 4. "Sale at retail" or "retail sale" shall also include the providing of competitive telephone service to consumers. 5. "Sale at retail" or "retail sale": a. "Sale at retail" or "retail sale" shall also include the sale of prewritten software other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user. For the purposes of this section, the sale of prewritten computer software includes the sale of or charge made for a key or an enabling or activation code, where th e keyorcode is requ ired to activate prewritten computer software and put the software into use. There is no separate sale of the key or code from the prewritten computer software, regardless of how the sale may be characterized bythevendor orbythe purchaser.Theterm "sale at retail" or "retail sale" does not include the sale of or charge made for: i. Custom software; or ii. The customization of prewritten software. b. The term also includes the charge made to consumers forthe right to access and use prewritten computer software, where possession of the software is maintained by the seller ora third party, regardless of whether the charge forthe service is on a per use, per user, per license, subscription, or some other basis. i. The service described in TMC Section 3.26.040.U.5.b includes the right to access and use prewritten software to perform data processing. ii. For the purposes of TMC Section 3.26.040.U.5.b(i), "data processing" means the systematic performance of operations on data to extractthe required information in an appropriate form or to convert the data to usable information. Data processing includes check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities. 6. "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, rightofway, mass pu blictransportation terminal orparking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state, the State of Washington, or by the United States and which is used or to be used primarilyforfoot or vehicular traffic including mass transportation vehides of any kind. 7. "Sale at retail" or "retail sale" shall also include the sale of or charge made for an extended warranty to a consumer. For purposes of this subsection, "extended warrant" means an agreementfora specified duration to perform th e replacementorrepairoftangible personal property atnoadditional charge ora reduced charge fortangible personal property, labor, or both, or to provide indemnification forthe replacementorrepairof tangible personal CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 11 of 34 149 property, based on the occurrence of specified events. The term "extended warranty" does not include an agreement, otherwise meeting the definition of extended warranty in this su bsection, if no separate charge is made forth e agreemen tan d the valu e of the agreement is included in the sales price of the tangible personal property covered by the agreement. 8. "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of neworexisting bu ildings oroth erstru ctu res under, u pon, orabove real property of or for the United States, any instrumentality thereof, ora county or city housing authority created pursuant to chapter 35.82 RCW, including the installing, or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation (government contracting). 9. "Sale at retail" or "retail sale" shall not include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instru mentality thereof, or a county or city housing authority. Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other byproducts of weapons production and nuclear research and development. 10. "Sale at retail" or "retail sale" shall not include the sale of or charge made for labor and services rendered for environmental remedial action. 11. "Sale at retail" or "retail sale" shall also include the following sales to consumers of digital goods, digital codes, and digital automated services: a. Sales in wh ich the sellerhasgranted the purchaserthe rightof permanent use; b. Sales in which the seller has granted the purchaser a right of use that is less than permanent; c. Sales in which the purchaser is not obligated to make continued payment as a condition of the sale; and d. Sales in which the purchaser is obligated to make continued payment as a condition of the sale. A retail sale of digital goods, digital codes, or digital automated services under TMC Section 3.26.040.0 .5.b.2 includes any services provided by the seller exclusively in connection with the digital goods, digital codes, or digital automated services, whetherornota separate charge is made for such services. Forpurposes of th is subsection, "permanent" means perpetual or for an indefinite or unspecified length of time. A right of permanent use is presumed to have been granted unless the agreement between the seller and the purchaser specifies or the circumstances surrounding the transaction suggest or indicate that the right to use terminates on the occurrence of a condition subsequent. 12. "Sale at retail" or "retail sale"shall also include the installing, repairing, altering, or improving of digital goods for consumers. V. "Sale at wholesale," or "wholesale sale" means any sale of tangible personal property, digital goods, digital codes, digital automated services, prewritten computer software, or services described in TMC Section 3.26.040.U.5.b.i, which is not a retail sale, and any charge made for labor and services rendered for persons who are not consumers, CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 12 of 34 150 in respectto real or personal property and retail services, if such charge is expressly defined as a retail sale or retail service when rendered to or for consumers. Sale at wholesale also in cludes th e sale of telephone business to an oth ertelecommunications company as defined in RCW 80.04.010 for the purpose of resale, as contemplated by RCW 35.21.715. W. "Taxpayer" means any "person", as herein defined, required to have a business license under this chapter or liable for the collection of any tax orfee underthis chapter, or who engages in any business or who performs any act for which a tax or fee is imposed by this chapter. X. "Value proceeding or accruing" means the consideration, whether money, credits, rights, or other property expressed in terms of money, a person is entitled to receive or which is actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. Y "Value of products" 1. The value of products, including by-products, extracted or manufactured, shall be determined by the gross proceeds derived from the sale thereof whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the pu rchaser or from any other person with respect to the extraction, manufacture, or sale of such products or by-products by the seller. 2. Where such products, including by-products, are extracted or manufactured for commercial or industrial use; and where such products, including by-products, are shipped, transported ortransferred out of the City, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale; the value shall correspond as n early as possible to the gross proceeds from sales in this state of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of su bsidiesorbon uses ordinarily payable by th e pu rchaseror by an yth ird person with respect to the extraction, manufacture, or sale of such products. In the absence of sales of similar products as a guide to value, such value may be determined upon a cost basis. In such cases, there shall be included every item of cost attributable to the particulararticle orarti de extracted or manufactured, including direct and indirect overhead costs. The Director may prescribe rules for the purpose of ascertaining such values. 3. Notwithstanding TMC Section 3.26.040.Y.2 above, the value of a product manufactured or produced for purposes of serving as a prototype for the development of a new or improved product shall correspond to (a) the retail selling price of such new or improved productwhen first offered for sale; or (b) the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale. Z "Wholesaling" means engaging in the activity of making sales at wholesale, and is reported under the wholesaling classification. Section 6. Regulations Established. A new TMC Section 3.26.050 is hereby established to read as follows: CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 13 of 34 151 3.26.050 Imposition of the Tax — Tax or Fee Levied A. Except as provided in TMC Section 3.26.050.B, there is hereby levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities within the City, whether the person's office or place of business be within or without the City. The tax shall be in amounts to be determined by application of rates against gross proceeds of sale, gross income of business, or value of products, including by-products, as the case may be, as follows: 1. Upon every person engaging within the City in business as an extractor; as to such persons the amountof the tax with respect to such business shall be equal to the value of the products, including by-products, extracted within the City for sale or for commercial or industrial use, multiplied by the rate of 0.085%. The measure of the tax is the value of the products, including by-products, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the City. 2. Upon every person engaging within the City in business as a manufacturer, as to such persons the amountof the tax with respect to such business shall be equal to the value of the products, including by-products, manufactured within the City, multiplied by the rate of 0.085%. The measure of the tax is the value of the products, including by- products, so manufactured, regardless of the place of sale or the fact that deliveries may be made to points outside the City. 3. Upon every person engaging with in the City in the business of making sales at wholesale, as to such persons, the amountof tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of 0.085%. 4. Upon every person engaging within the City in the business of making sales at retail, as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business, without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of 0.05%. 5. Upon every person engaging within the City in the business of making sales of retail services; as to such persons, the amountof tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of 0.05%. 6. Upon every person engaging within the City in the businessof(i) printing,(ii) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (iii) pu blishing newspapers, magazines and periodicals, (iv) extracting for hire, and (v) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of 0.085%. 7. Upon every other person engaging within the City in any business activity other than or in addition to those enumerated in the above subsections; as to such persons, the amou ntof tax on accou ntof such activities shall be equal to the gross income of the business multiplied by the rate of 0.085%. Th is su bsection includes, among others, and without limiting the scope hereof (whether or not title to material used in the performance of such business passes to another by accession, merger or other than by outright sale), persons engaged in the business of developing, or producing custom CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 14 of 34 152 software or of customizing canned software, producing royalties or commissions, and persons engaged in the business of rendering any type of service which does not constitute a sale at retail, a sale at wholesale, or a retail service. B. The gross receipts tax imposed in this section shall not apply to any person whose gross proceeds of sales, gross income of the business, and value of products, including by-products, as the case may be, from all activities conducted within the City during any calendar year is equal to or less than $750,000. Section 7. Regulations Established. A new TMC Section 3.26.070 is hereby established to read as follows: 3.26.070 Multiple Activities Credit When Activities Take Place in One or More Cities with Eligible Gross Receipt Taxes A. Persons who engage in business activities that are within the purview of two or more subsections of TMC Section 3.26.050 shall be taxable under each applicable subsection. B. Notwithstanding anything to the contrary herein, if imposition of the City's tax would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit to the extent necessary to preserve the validity of the City's tax, and still apply the City tax to as much of the taxpayer's activities as may be subject to the City's taxing authority. C. To take the credit authorized by this section, a taxpayer must be able to document that the amount of tax sought to be credited was paid upon the same gross receipts used in computing the tax against which the credit is applied. D. Credit for persons that sell in the City products that they extract or manufacture. Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid (a) with respect to the manufacturing of the products sold in the City, and (b) with respect to the extracting of the products, or the ingredients used in the products, sold in the City. The amountof the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. E. Credit for persons that manufacture products in the City using ingredients they extract. Persons taxable under the manufacturing classification with respect to manufacturing products in this City shall be allowed a credit against those taxes for any eligible gross receipts tax paid with respect to extracting the ingredients of the products manufactured in the City. The amountof the credit shall not exceed the tax liabilityarising under this chapter with respect to the manufacturing of those products. F. Credit for persons that sell within the City products that they print, or publish and print. Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid with respect to the printing, or the printing and publishing, of the products sold within the City. The amountof the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 15 of 34 153 Section 8. Regulations Established. A new TMC Section 3.26.075 is hereby established to read as follows: 3.26.075 Deductions to Prevent Multiple Taxation of Manufacturing Activities and Prior to January 1, 2008, Transactions Involving More Than One City with An Eligible Gross Receipts Tax A. Amounts subject to an eligible gross receipts tax in another city that also maintains nexus over the same activity. For taxes due prior to January 1, 2008, a taxpayer that is subject to an eligible gross receipts tax on the same activity in more than one jurisdiction may be entitled to a deduction as follows: 1. A taxpayer that has paid an eligible gross receipts tax, with respect to a sale of goods or services, to a jurisdiction in which the goods are delivered or the services are provided may deduct an amount equal to the gross receipts used to measure that tax from the measure of the tax owed to the City. 2. Notwithstanding the above, a person that is subject to an eligible gross receipts tax in more than one jurisdiction on the gross income derived from intangibles such as royalties, trademarks, patents, or goodwill shall assign those gross receipts to the jurisdiction where the person is domiciled (its headquarters is located). 3. A taxpayer that has paid an eligible gross receipts tax on the privilege of accepting or executing a contract with another city may deduct an amount equal to the contract price used to measure the tax due to the other city from the measure of the tax owed to the City. B. Person manufacturing products within and without. A person manufacturing products within the City using products manufactured by the same person outside the City may deduct from the measure of the manufacturing tax the value of products manufactured outside the City and included in the measure of an eligible gross receipts tax paid to the other jurisdiction with respect to manufacturing such products. Section 9. Regulations Established. A new TMC Section 3.26.076 is hereby established to read as follows: 3.26.076 Assignment of Gross Income Derived from Intangibles Gross income derived from the sale of intangibles such as royalties, trademarks, patents, or goodwill shall be assigned to the jurisdiction wherethe person is domiciled (its headquarters is located). Section 10. Regulations Established. A new TMC Section 3.26.077 is hereby established to read as follows: 3.26.077 Allocation and Apportionment of Income when Activities Take Place in More than One Jurisdiction Effective Jan uary1, 2024, gross income, otherthan persons subjectto the provisions of chapter 82.14A RCW, shall be allocated and apportioned as follows: CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 16 of 34 154 A. Gross income derived from all activities other than those taxed as service or royalties under TMC Section 3.26.050.A.7. shall be allocated to the location where the activity takes place. B. In the case of sales of tangible personal property, the activity takes place where delivery to the buyer occurs. C. In the case of sales of digital products, the activity takes place where delivery to the buyer occurs. The delivery of digital products will be deemed to occur at: 1. The seller's place of business if the purchaser receives the digital product at the seller's place of business; 2. If not received at the seller's place of business, the location where the purchaser or the purchaser's donee, designated as such by the purchaser, receives the digital product, including the location indicated by instructionsfordeliverytothe purchaser or donee, known to the seller; 3. If the location where the purchaser or the purchaser's donee receives the digital product is not known, the purchaser's address maintained in the ordinary course of the seller's business when use of this address does not constitute bad faith; 4. If no address for the purchaser is maintained in the ordinary course of the seller's business, the purchaser's address obtained during the consummation of the sale, including the address of a purchaser's payment instrument, if no other address is available, when use of this address does not constitute bad faith; and 5. If no address for the purchaser is obtained during the consummation of the sale, the address where the digital good or digital code is first made available for transmission by the seller or the address from which the digital automated service or service described in RCW 82.04.050 (2)(g) or (6)(b) was provided, disregarding forthese purposes any location that merely provided the digital transfer of the product sold. D. If none of the methods in TMC Section 3.26.077.0 for determining where the delivery of digital products occurs are available after a good faith effort by the taxpayer to apply the methods provided in TMC Section 3.26.077.C.1 through TMC Section 3.26.077.C.5, then the City and the taxpayer may mutually agree to employ any other method to effectuate an equitable allocation of income from the sale of digital products. The taxpayer will be responsible for petition in g the C ity to use an alternative method under TMC Section 3.26.077.D. The City may employ an alternative method for allocating the income from the sale of digital products if the methods provided in TMC Section 3.26.077.C.1 through TMC Section 3.26.077.C.5 are not available and the taxpayer and the City are unable to mutually agree on an alternative method to effectuate an equitable allocation of income from the sale of digital products. E. For purposes of TMC Section 3.26.077.C.1 through TMC Section 3.26.077.C.5, the following definitions apply: 1. "Digital automated services," "digital codes," and "digital goods" have the same meaning as in RCW 82.04.192; 2. "Digital products" means digital goods, digital codes, digital automated services, and the services described in RCW 82.04.050(2)(g) and (6)(c); and CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 17 of 34 155 3. "Receive" has the same meaning as in RCW 82.32.730. F. Gross income derived from activities taxed as services and other activities taxed under TMC Section 3.26.050.A.7 shall be apportioned to the City by multiplying apportionable income by a fraction, the numerator of which is the payroll factor plus the service income factor and the denominator of which is two. 1. The payroll factor is a fraction, the numerator of which is the total amount paid in the City during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period. Compensation is paid in the City if: a. The individual is primarily assigned within the City; b. The individual is not primarily assigned to any place of business for the tax period and the employee performs 50% or more of his or her service for the tax period in the City; or c. The individual is not primarily assigned to any place of business for the tax period, the individual does not perform 50% or more of his or her service in any city and the employee resides in the City. 2. The service income factor is a fraction, the numerator of which is the total service income of the taxpayer in the City during the tax period, and the denominator of wh ich isthetotal service income of the taxpayer everywhere du ring the tax period. Service income is in the City if the customer location is in the City. 3. Gross income of the business from engaging in an apportionable activity must be excluded from the denominator of the service income factor if, in respect to such activity, at least some of the activity is performed in the City, and the gross income is attributable under TMC Section 3.26.077.F.2 to a city or unincorporated area of a county within the United States or to a foreign country in which the taxpayer is not taxable. For purposes of TMC Section 3.26.077.F.3, "not taxable" means that the taxpayer is not subject to a business activities tax by that city or county within the United States or by that foreign country, except that a taxpayer is taxable in a city or county within the United States or in a foreign country in which it would be deemed to have a substantial nexus with the city or county within the United States or with the foreign country under the standards in RCW 35.102.050 regardless of whether that city or county with in the United States or that foreign country imposes such a tax. 4. If the allocation and apportionment provisions of TMC Section 3.26.077.F do not fairly represent the extent of the taxpayer's business activity in the City, the taxpayer may petition for or the tax administrator may require, in respect to all or any part of the taxpayer's business activity, if reasonable: a. Separate accounting; b. The exclusion of any one or more of the factors; c. The inclusion of one or more additional factors that will fairly represent the taxpayer's business activity in the City; or CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 18 of 34 156 d. The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income. 5. The party petitioning for, or the tax administrator requiring, the use of any method to effectuate an equitable allocation and apportionment of the taxpayer's income pursuant to TMC Section 3.26.077.F.4 must prove by a preponderance of the evidence: a. That the allocation and apportionment provisions of this TMC Section 3.26.077.F do notfairly represent the extent of the taxpayer's business activity in the City; and b. That the alternative to such provisions is reasonable. c. The same burden of proof shall apply whether the taxpayer is petitioning for, or the tax administrator is requiring, the use of an alternative, reasonable method to effectuate an equitable allocation and apportion mentof the taxpayer's income. 6. If the tax administrator requires any method to effectuate an equitable allocation and apportionment of the taxpayer's income, the tax administrator cannot impose any civil or criminal penalty with reference to the tax due that is attributable to the taxpayer's reasonable reliance solely on the allocation and apportionment provisions of TMC Section 3.26.077.F. 7. A taxpayer that has received written permission from the tax admin istrator to use a reasonable method to effectuate an equitable allocation and apportionment of the taxpayer's income shall not have that permission revoked with respect to transactions and activities that have already occurred unless there has been a material change in, or a material misrepresentation of, the facts provided by the taxpayer upon which the tax administrator reasonably relied in approving a reasonable alternative method. G. The definitions in this subsection apply throughout this section. 1. "Apportionable income" means the gross income of the business taxable under the service classifications of a city's gross receipts tax, including income received from activities outside the City if the income would be taxable under the service classification if received from activities within the City, less any exemptions or deductions available. 2. "Business activities tax" means a tax measured by the amount of, or economic results of, business activity conducted in a city or county within the United States or within a foreign country. The term includes taxes measured in whole or in part on net income or gross income or receipts. "Business activities tax" does not include a sales tax, use tax, or a similar transaction tax, imposed on the sale or acquisition ofgoods or services, whether or not denominated on a gross receipts tax or a tax imposed on the privilege of doing business. 3. "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to individuals for personal services that are or would be included in the individual's gross income under the federal Internal Revenue Code. 4. "Customer" means a person or entity to whom the taxpayer makes a sale or renders services or from whom the taxpayer otherwise receives gross income of the business. CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 19 of 34 157 5. "Customer location" means the following: a. For a customer not engaged in business, if the service requires the customer to be physically present, where the service is performed. b. For a customer not engaged in business, if the service does not require the customer to be physically present: (1) The customer's residence; or (2) If the customer's residence is not known, the customer's billing/mailing address. c. Fora customer engaged in business: (1) Where the services are ordered from; (2) At the customer's billing/mailing address if the location from which the services are ordered is not known; or (3) At the customer's commercial domicile if none of the above are known. 6. "Individual" means any individual who, underthe usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer. 7. "Primarily assigned" means the business location of the taxpayer where the individual performs his or her duties. 8. "Service -taxable income" or "service income" means gross income of the business subject to tax under either the service or royalty classification. 9. "Tax period" means the calendar year during which tax liability is accrued. If taxes are reported by a taxpayer on a basis more frequentthan once peryear, taxpayers shall calculate the factors for the previous calendar year for reporting in the current calendar year and correct the reporting for the previous year when the factors are calculated for that year, but not later than the end of the first quarter of the following year. H. Assignment or apportionment of revenue under this section shall be made in accordance with and in full compliance with the provisions of the interstate commerce clause of the United States Constitution where applicable. Section 11. Regulations Established. A new TMC Section 3.26.078 is hereby established to read as follows: 3.26.078 Allocation and Apportionment of Printing and Publishing Income when Activities Take Place in More than One Jurisdiction Notwithstanding RCW 35.102.130, effective January 1, 2008, gross income from the activities of printing, and of publishing newspapers, periodicals, or magazines, shall be allocated to the principal place in this state from which the taxpayer's business is directed or managed. As used in this section, the activities of printing, and of publishing CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 20 of 34 158 newspapers, periodicals, or magazines, have the same meanings as attributed to those terms in RCW 82.04.280(1) by the Department of Revenue. Section 12. Regulations Established. A new TMC Section 3.26.090 is hereby established to read as follows: 3.26.090 Exemptions A. Public utilities. This chapter shall not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under the provisions of TMC Chapter 3.50. B. Investments - dividends from subsidiary corporations. This chapter shall not apply to amounts derived by persons, other than those engaging in banking, loan, security, or other financial businesses, from investments or the use of money as such, and also amounts derived as dividends by a parent from its subsidiary corporations. C. Insurance business. This chapter shall not apply to amounts received by any person who is an insurer or their appointed insurance producer upon which a tax based on gross premiums is paid to the state pursuant to RCW 48.14.020, and provided further, that the provisions of this su bsection shall n otexempt any bonding companyfrom tax with respect to gross income derived from the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of the defaulting contractor. D. Employees. 1. This chapter shall not apply to any person in respect to the person's employment in the capacity as an employee or servant as distinguished from that of an independent contractor. For the purposes of this subsection, the definition of employee shall include those persons that are defined in the Internal Revenue Code, as hereafter amended. 2. A booth renter is an independent contractor for purposes of this chapter. E. Amounts derived from sale of real estate. This chapter shall notapplyto gross proceeds derived from the sale of real estate. This, however, shall not be construed to allow an exemption of amounts received as commissions from the sale of real estate, nor as fees, handling charges, discounts, interest or similar financial charges resulting from, or relating to, real estate transactions. This chapter shall also not apply to amounts received for the rental of real estate if the rental income is derived from a contract to rent for a continuous period of 30 days or longer. F. Mortgage brokers' third -party provider services trust accounts. This chapter shall not apply to amounts received from trust accounts to mortgage brokers for the payment of third -party costs if the accounts are operated in a manner consistent with RCW 19.146.050 and any rules adopted by the director of financial institutions. G. Amounts derived from manufacturing, selling or distributing motor vehicle fuel. This chapter shall not apply to the manufacturing, selling, or distributing motor vehicle fuel, as the term "motor vehicle fuel" is defined in RCW 82.38.020 and exempt CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 21 of 34 159 under RCW 82.38.280, provided that any fuel not subjected to the state fuel excise tax, or any other applicable deduction or exemption, will be taxable under this chapter. H. Amounts derived from liquor, and the sale or distribution of liquor. This chapter shall not apply to liquor as defined in RCW 66.04.010 and exempt in RCW 66.08.120. 1. Casual and isolated sales. This chapter shall not apply to the gross proceeds derived from casual or isolated sales. J. Accommodation sales. This chapter shall not apply to sales for resale by persons regularly engaged in the business of making retail sales of the type of property so sold to other persons similarly engaged in the business of selling such property where (1) the amount paid by the buyer does not exceed the amount paid by the seller to the vendor in the acquisition of the article and (2) the sale is made as an accommodation to the buyer to enable the buyer to fill a bona fide existing order of a customer or is made within 14 days to reimburse in kind a previous accommodation sale by the buyer to the seller. K. Taxes collected as trust funds. This chapter shall not apply to amounts collected by the taxpayer from third parties to satisfy third party obligations to pay taxes such as the retail sales tax, use tax, and admission tax. L. Nonprofit organizations. This chapter shall notapplyto entities that are exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, except retail sales. M. Businesses operating as a public card room. This chapter shall not apply to entities operating "public card rooms," as defined in WAC 230-15-001. N. Amateur/Professional/Semi-professional sports teams. This chapter shall not apply to amateur, professional or semi-professional sports teams or clubs operating in the City primarily engaged in participating in live sporting events, such as baseball, basketball, football, hockey, soccer, and jai alai games, before a paying audience. These teams or clubs may or may not operate their own arena, stadium, or other facility for presenting these events. Section 13. Regulations Established. A new TMC Section 3.26.100 is hereby established to read as follows: 3.26.100 Deductions In computing the license fee or tax, there may be deducted from the measure of tax the following items: A. Receipts from tangible personal property delivered outside the State. In computing tax, there may be deducted from the measure of tax under retailing or wholesaling amounts derived from the sale of tangible personal property that is delivered by the seller to the buyer or the buyer's representative at a location outside the State of Washington. CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 22 of 34 160 B. Cash discount taken by purchaser. In computing tax, there may be deducted from the measu re of tax the cash discountamounts actually taken by the purchaser. This deduction is not allowed in arriving at the taxable amount under the extracting or manufacturing classifications with respect to articles produced or manufactured, the reported values of which, for the purposes of this tax, have been computed according to the "value of product" provisions. C. Credit losses of accrual basis taxpayers. In computing tax, there may be deducted from the measure of tax the amount of credit losses actually sustained by taxpayers whose regular books of account are kept upon an accrual basis. D. Constitutional prohibitions. In computing tax, there may be deducted from the measu re of thetax amou nts derived from business which the City is prohibited from taxing underthe Constitution ofthe State of Washington orthe Constitution oftheUnited States. E. Receipts from the Sale of Tangible Personal Property and Retail Services Delivered Outside the City but Within Washington. Effective January 1, 2024, amounts included in the gross receipts reported on the tax return derived from the sale of tangible personal property delivered to the buyer or the buyer's representative outside the City but within the State of Washington maybe deducted from the measure of tax under the retailing, retail services, or wholesaling classification. F. Professional employer services. In computing the tax, a professional employer organization may deduct from the calculation of gross income the gross income of the business derived from performing professional employer services that is equal to the portion of the fee charged to a clientthat represents the actual cost of wages and salaries, benefits, workers' compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the professional employer organization undera professional employer agreement. G. Interest on investments or loans secured by mortgages or deeds of trust. In computing tax, to the extent permitted by Chapter82.14A RCW, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest received on investments or loans primarily secured by first mortgages or trust deeds on non -transient residential properties. Section 14. Regulations Established. A new TMC Section 3.26.120 is hereby established to read as follows: 3.26.120 Tax Part of Overhead It is not the intention of this chapter that the taxes or fees herein levied upon persons engaging in business be construed as taxes or fees upon the purchasers or customer, butthatsuch taxes or fees shall be levied upon ,and collectible from, the person engaging in the business activities herein designated and that such taxes or fees shall constitute a part of the cost of doing business of such persons. Section 15. Regulations Established. A new TMC Section 3.26.130 is hereby established to read as follows: CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 23 of 34 161 3.26.130 Severability Clause If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. Section 16. Chapter3.27 of the Tukwila Municipal Code Established. A chapter of the Tukwila Municipal Code entitled "Business and Occupation Tax Administrative Provisions," to be codified as Tukwila Municipal Code (TMC) Chapter 3.27, is hereby established to read as follows: CHAPTER 3.27 BUSINESS AND OCCUPATION TAX ADMINISTRATIVE PROVISIONS Sections: 3.27.010 Purpose 3.27.015 Application of Chapter Stated 3.27.020 Definitions 3.27.021 Definitions — References to Chapter 82.32 RCW 3.27.025 Registration/License Requirements 3.27.040 When Due and Payable — Reporting Periods — Monthly, Quarterly, and Annual Returns — Threshold Provisions or Relief from Filing Requirements — Computing Time Periods — Failure to File Returns 3.27.050 Payment Methods — Mailing Returns or Remittances — Time Extension — Deposits — Recording Payments — Payment Must Accompany Return — NSF Checks 3.27.060 Records to be Preserved — Examination — Estoppel to Question Assessment 3.27.070 Accounting Methods 3.27.080 Public Work Contracts — Payment of Fee and Tax Before Final Payment for Work 3.27.090 Underpayment of Tax, Interest, or Penalty — Interest 3.27.095 Time in Which Assessment May Be Made 3.27.100 Over Payment of Tax, Penalty, or Interest — Creditor Refund — Interest Rate — Statute of Limitations 3.27.110 Late Payment— Disregard of Written Instructions — Evasion — Penalties 3.27.120 Cancellation of Penalties 3.27.130 Taxpayer Quitting Business — Liability of Successor 3.27.140 Administrative Appeal 3.27.260 Severability Section 17. Regulations Established. A new TMC Section 3.27.010 is hereby established to read as follows: CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 24 of 34 162 3.27.010 Purpose The purpose of this Chapter is to provide for the administrative procedures for the Business and Occupation Tax as codified in TMC Chapter3.26, setting admin istrative fees and prescribing penalties for noncompliance with the provisions of this chapter. Section 18. Regulations Established. A new TMC Section 3.27.015 is hereby established to read as follows: 3.27.015 Application of Chapter Stated The provisions of this Chapter shall apply with respect to the taxes imposed under TMC Chapter3.26 and under other titles, chapters, and sections in such mannerand to such extent as indicated in each such title, chapter or section. Section 19. Regulations Established. A new TMC Section 3.27.020 is hereby established to read as follows: 3.27.020 Definitions For purposes of this Chapter, the definitions contained in TMC Chapter 3.26 shall apply equally to the provisions of this chapter unless the term is defined otherwise in this chapter. In addition, the following definitions shall apply: A. "Reporting period" means: 1. A one-month period beginning the first day of each calendarmonth (monthly); or 2. Athree-month period begin n ing thefirstday of Jan uary, April, July or October of each year (quarterly); or 3. A twelve-month period beginning the first day of January of each year (annual). B. "Return" means any documenta person is required by the City to file to satisfy or establish a tax or fee obligation that is administered or collected by the City and that has a statutorily defined due date. C "Successor" means any person to whom a taxpayer quitting, selling out, exchanging, or disposing of a business sells or otherwise conveys, directly or indirectly, in bulk and not in the ordinary course of the taxpayer's business, any part of the materials, supplies, merchandise, inventory, fixtures, or equipment of the taxpayer. Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor. D "Tax year" or "taxable year" means the calendar year. Section 20. Regulations Established. A new TMC Section 3.27.021 is hereby established to read as follows: CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 25 of 34 163 3.27.021 Definitions — References to Chapter 82.32 RCW Where provisions of Chapter 82.32 RCW are incorporated in TMC Section 3.27.090 of this Title, "Department" as used in the RCW shall refer to the "Director" as defined in TMC Section 3.26.040.D and "warrant" as used in the RCW shall mean "citation or criminal complaint." Section 21. Regulations Established. A new TMC Section 3.27.025 is hereby established to read as follows: 3.27.025 Registration/License Requirements No person shall engage in any business or conduct any business activity without first obtaining a valid current business registration as required by TMC 5.04.015. Section 22. Regulations Established. A new TMC Section 3.27.040 is hereby established to read as follows: 3.27.040 When Due and Payable — Reporting Periods — Monthly, Quarterly, and Annual Returns — Threshold Provisions or Relief from Filing Requirements — Computing Time Periods — Failure to File Returns. A. Other than any an n ual license fee or registration fee assessed u nderth is chapter, the tax imposed by this chapter shall be due and payable in quarterly installments. At the Director's discretion, businesses may be assigned to a month lyor annual reporting period depending on the tax amount owing or type of tax. Effective January 1, 2024, tax payments are due on or before the time as provided in RCW 82.32.045(1), (2), and (3). B. Taxes shall be paid as provided in this chapter and accompanied by a return on forms as prescribed by the Director. The return shall be signed by the taxpayer personally or by a responsible officer or agent of the taxpayer. The individual signing the return shall swear or affirm that the information in the return is complete and true. C. Tax returns must be filed and returned by the due date whether or not any tax is owed. D. For purposes of the tax imposed by TMC Chapter3.26, any person whose value of products, gross proceeds of sales, or gross income of the business, subjectto tax after all allowable deductions, is equal to or less than $750,000 in the current calendar year, shall file a return, declare no tax due on their return, and submit the return to the Director. The gross receipts and deduction amounts shall be entered on the tax return even though no tax may be due. E. A taxpayer that commences to engage in business activity shall file a return and pay the tax or fee for the portion of the reporting period during which the taxpayer is engaged in business activity. F. Except as otherwise specifically provided by any other provision of this chapter, in computing any period of days prescribed by this chapter the day of the act or event from which the designated period of time runs shall not be included. The last day of the CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 26 of 34 164 period shall be included unless it is a Saturday, Sunday, or City or Federal legal holiday, in which case the lastday of such period shall be the nextsucceedingdaywhich isneither a Saturday, Sunday, or City or Federal legal holiday. G. If any taxpayer fails, neglects or refuses to make a return as and when required in this chapter, the Director is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the Director's estimate of the tax or fees due. Such assessment shall be deemed prima facie correct and shall be the amount of tax owed to the City by the taxpayer. The Director shall notify th e taxpayer by mail of the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. Section 23. Regulations Established. A new TMC Section 3.27.050 is hereby established to read as follows: 3.27.050 Payment Methods — Mailing Returns or Remittances — Time Extension — Deposits — Recording Payments — Payment Must Accompany Return — NSF Checks. A. Taxes shall be paid to the Director in United States currency by bank draft, certified check, cashier's check, personal check, money order, cash, or by wire transfer or electronic payment if such wire transfer or electronic payment is authorized by the Director. If payment so received is not paid by the bank on which itis drawn, the taxpayer, by whom such payment is tendered, shall remain liable for payment of the tax and for all legal penalties, the same as if such payment had not been tendered. Acceptance of any sum by the Director shall not discharge the tax or fee due unless the amount paid is the full amount due. B. A return or remittance that is transmitted to the City by United States mail shall be deemed filed or received on the date shown by the cancellation mark stamped by the Post Office upon the envelope containing it. The Director may allow electronic filing of returns or remittances from any taxpayer. A return or remittance which is transmitted to the City electronically shall be deemed filed or received according to procedures set forth by the Director. C. If a written request is received prior to the due date, the Director, for good cause, may grant, in writing, additional time within which to make and file returns. D. The Director shall keep full and accurate records of all funds received or refunded. The Director shall apply payments first against all penalties and interest owing, and then upon the tax, without regard to any direction of the taxpayer. E. For any return not accompanied by a remittance of the tax shown to be due thereon, the taxpayer shall be deemed to have failed or refused to file a return and shall be subject to the penalties and interest provided in this chapter. F. Any payment made that is returned for lack of sufficient funds or for any other reason will not be considered received until payment by certified check, money order, or cash of the original amount due, plus a "non -sufficient funds" (NSF) charge of $25.00 for checks of $50.00 or less and $40.00 for checks over $50.00 is received by the CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 27 of 34 165 Director. Any license issued upon payment with a NSF check will be considered void, and shall be returned to the Director. No license shall be reissued until payment (including the NSF charge) is received. G. The Director is authorized, but not required, to mail tax return forms to taxpayers, but failure of the taxpayer to receive any such forms shall not excuse the taxpayer from filing returns and making payment of the taxes or fees, when and as due under this chapter. Section 24. Regulations Established. A new TMC Section 3.27.060 is hereby established to read as follows: 3.27.060 Records to be Preserved — Examination — Estoppel to Question Assessment. Every person liable for any fee or tax imposed by this chapter shall keep and preserve, for a period of 5 years after filing atax return, such records as may be necessary to determine the amount of any fee or tax for which the person may be liable; which records shall include copies of all federal income tax and state tax returns and reports made by the person. All books, records, papers, invoices, vendor lists, inventories, stocks of merchandise, and other data including federal income tax and state tax returns and reports shall be open for examination at any time by the Director or its duly authorized agent. Every person's business premises shall be open for inspection or examination by the Director or a duly authorized agent. A. If a person does not keep the necessary books and records within the City, it shall be sufficient if such person (a) produces within the City such books and records as may be required by the Director, or (b) bears the cost of examination by the Director's agent at the place where such books and records are kept; provided that the person electing to bear such cost shall pay in advance to the Director the estimated amount thereof including round-trip fare, lodging, meals and incidental expenses, subject to adjustment upon completion of the examination. B. Any person who fails, or refuses a Department request, to provide or make available records, or to allow inspection or examination of the business premises, shall be forever barred from questioning in any courtaction, the correctness of anyassessment of taxes made by the City for any period for which such records have not been provided, made available or kept and preserved, or in respect of which inspection or examination of the business premises has been denied. The Director is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon wh ich to base the estimate of the tax or fees due. Such fee or tax assessment shall be deemed prima facie correct and shall be the amount of tax owing the City by the taxpayer. The Director shall notify the taxpayer by mail the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. Section 25. Regulations Established. A new TMC Section 3.27.070 is hereby established to read as follows: CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 28 of 34 166 3.27.070 Accounting Methods A. A taxpayer may file tax retu rns in each reporting period with amounts based upon cash receipts only if the taxpayer's books of account are kept on a cash receipts basis. A taxpayer that does not regularly keep books of account on a cash receipts basis must file returns with amounts based on the accrual method. B. The taxes imposed and the returns required hereunder shall be upon a calendar year basis. Section 26. Regulations Established. A new TMC Section 3.27.080 is hereby established to read as follows: 3.27.080 Public Work Contracts — Payment of Fee and Tax Before Final Payment for Work The Director may, before issuing any final payment to any person performing any pu blicwork contract for the City, require such person to pay in full all license fees or taxes due underthis title from such person on account of such contractor otherwise, and may require such taxpayer to file with the Directora verified list of all subcontractors supplying labor and/or materials to the person in connection with said public work. Section 27. Regulations Established. A new TMC Section 3.27.090 is hereby established to read as follows: 3.27.090 Underpayment of Tax, Interest, or Penalty - Interest A. If, upon examination of any returns, or from other information obtained by the Director, it appears that a tax or penalty less than that properly due has been paid, the Director shall assess the additional amountfoundto be due and shall add thereto interest on the tax only. The Director shall notify the person by mail of the additional amount, which shall become due and shall be paid within 30 days from the date of the notice, or within such time as the Director may provide in writing. B. For tax periods after December 31, 2004 the Director shall compute interest in accordance with RCW 82.32.050 as it now exists or as it may be amended. C. If TMC Section 3.27.090.B is held to be invalid, then the provisions of RCW 82.32.050 existing at the effective date of this ordinance shall apply. Section 28. Regulations Established. A new TMC Section 3.27.095 is hereby established to read as follows: 3.27.095 Time in Which Assessment May Be Made The Director shall not assess, or correct an assessment for additional taxes, penalties, or interest due more than four years after the close of the calendar year in which they were incurred, except that the Director may issue an assessment: CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 29 of 34 167 A. Againsta person who is not currently registered or licensed or has not filed a tax return as required by this chapter for taxes due within the period commencing 10 years prior to the close of the calendar year in which the person was contacted in writing by the Director; B. Against a person that has committed fraud or who misrepresented a material fact; or C. Against a person that has executed a written waiver of such limitations. Section 29. Regulations Established. A new TMC Section 3.27.100 is hereby established to read as follows: 3.27.100 Over Payment of Tax, Penalty, or Interest — Credit or Refund — Interest Rate — Statute of Limitations A. If, upon receipt of an application for a refund, or during an audit or examination of the taxpayer's records and tax returns, the Director determines that the amount of tax, penalty, or interest paid is in excess of that properly due, the excess amount shall be credited to the taxpayer's account or shall be refunded to the taxpayer. Except as provided in TMC Section 3.27.100.B, no refund or credit shall be made for taxes, penalties, or interest paid more than 4 years prior to the beginning of the calendar year in which the refund application is made or examination of records is completed. B. The execution of a written waiver shall extend the time for applyi ng for, or making a refund or credit of any taxes paid during, or attributable to, the years covered by the waiver if, prior to the expiration of the waiver period, an application for refund of such taxes is made by the taxpayer or the Director discovers that a refund or credit is due. C. Refunds shall be made by means of vouchers approved by the Director and by the issuance of a City check or warrants drawn upon and payable from such funds as the City may provide. D. Any final judgment for which a recovery is granted by any court of competent jurisdiction for tax, penalties, interest, or costs paid by any person shall be paid in the same manner, as provided in TMC Section 3.27.100.C, upon the filing with the Director certified copy of the order or judgment of the court. Section 30. Regulations Established. A new TMC Section 3.27.110 is hereby established to read as follows: 3.27.110 Late Payment — Disregard of Written Instructions — Evasion - Penalties A. If payment of any tax due on a return to be filed by a taxpayer is not received by the Director by the due date, the Director shall add a penalty in accordance with RCW 82.32.090(1), as it now exists or as it may be amended. B. If the Director determines that any tax has been substantially underpaid as defined in RCW 82.32.090(2), there shall be added a penalty in accordance with RCW 82.32.090(2), as it now exists or as it may be amended. CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 30 of 34 168 C. If a citation or criminal complaint is issued by the Director for the collection of taxes, fees, assessments, interest or penalties, there shall be added thereto a penalty in accordance with RCW 82.32.090(3), as it now exists oras it may be amended. D. If the Director finds thata person has engaged in any business or performed any act upon which a tax is imposed under this title and that person has not obtained from the Director a license as required by City of Tukwila, the Director shall impose a penalty in accordance with RCW 82.32.090(4), as it now exists oras it may be amended. No penalty shall be imposed under TMC Section 3.27.110.D if the person who has engaged in business withouta license obtains a license prior to being notified by the Director of the need to be licensed. E. If the Director determines that all or any part of a deficiency resulted from the taxpayer's failure to follow specific written tax reporting instructions, there shall be assessed a penalty in accordance with RCW 82.32.090(5), as it now exists or as it may be amended. F. If the Director finds that all or any part of the deficiency resulted from an intent to evade the tax payable, the Director shall assess a penalty in accordance with RCW 82.32.090(5), as it now exists or as it may be amended. G. The penalties imposed under TMC Section 3.27.110.A through E can each be imposed on the same tax found to be due. This subsection does not prohibit or restrict the application of other penalties authorized by law. H. The Director shall not impose both the evasion penalty and the penalty for disregarding specific written instructions on the same tax found to be due. I. For the purposes of this section, "return" means any document a person is required by the City of Tukwila to file to satisfy or establish a tax or fee obligation that is administered or collected by the City, and that has a statutorily defined due date. J. If incorporation of future changes to RCW 82.32.090 into the Tukwila Municipal Code is deemed invalid, then the provisions of RCW 82.32.090 existing at the time this ordinance is effective shall apply. Section 31. Regulations Established. A new TMC Section 3.27.120 is hereby established to read as follows: 3.27.120 Cancellation of Penalties A. The Director may cancel any penalties imposed under TMC Section 3.27.110.A if the taxpayer shows that its failure to timely file or pay the tax was due to reasonable cause and not willful neglect. Willful neglect is presumed unless the taxpayer shows that it exercised ordinary business care and prudence in making arrangements to file the retu rn and pay the tax butwas, nevertheless, due to circu mstances beyond the taxpayer's control, unable to file or pay by the due date. The Director has no authority to cancel any other penalties or to cancel penalties for any other reason except as provided in TMC Section 3.27.120.C. CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 31 of 34 169 B. A request for cancellation of penalties must be received by the Director within 30 days after the date the Department mails the notice that the penalties are due. The request must be in writing and contain competent proof of all pertinent facts supporting a reasonable cause determination. In all cases the burden of proving the facts rests upon the taxpayer. C. The Director may cancel the penalties in TMC Section 3.27.110.A one time if a person: 1. Is not currently licensed and filing returns, 2. Was unaware of its responsibility to file and pay tax, and 3. Obtained business licenses and filed past due tax returns within 30 days after being notified by the Department. D. The Director shall not cancel any interest charged upon amounts due. Section 32. Regulations Established. A new TMC Section 3.27.130 is hereby established to read as follows: 3.27.130 Taxpayer Quitting Business — Liability of Successor A. Whenever any taxpayer quits business, sells out, exchanges, or otherwise disposes of his business or his stock of goods, any tax payable hereunder shall become immediately due and payable. Such taxpayer shall, within 10 days thereafter, make a return and pay the tax due. B. Any person who becomes a successor shall become liable for the full amount of any tax owing. The successor shall withhold from the purchase price a sum sufficient to pay any tax due to the City from the taxpayer until such time as: a) the taxpayer shall produce a receipt from the City showing payment in full of any tax due or a certificate that no tax is due, or b) more than 6 months has passed since the successor notified the Director of the acquisition and the Director has not issued and notified the successor of an assessment. C. Payment of the tax by the successor shall, to the extent thereof, be deemed a payment upon the purchase price. If such paymentis greater in amountthan the purchase price, the amount of the difference shall become a debt due such successor from the taxpayer. D. Notwithstanding the above, if a successor gives written notice to the Director of the acquisition, and the Department does not within 6 months of the date it received the notice issue an assessment againstthe taxpayer and mail a copy of that assessment to the successor, the successor shall not be liable for the tax. Section 33. Regulations Established. A new TMC Section 3.27.140 is hereby established to read as follows: CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 32 of 34 170 3.27.140 Administrative Appeal A. Any person aggrieved by the calculation of the tax determined to be due to the City pursuant to this chapter may appeal to the Finance Director or his/her designee from such determination by filing a written notice of appeal with the City Clerk within 20 calendar days from the date on which such person was given notice of the tax. The notice of appeal must state the grounds for appeal, including a detailed explanation of why the amountofthe tax was incorrect. The Finance Director or designee shall review the basis for the appeal and may request clarification from the appellant. After the review is complete, the Finance Director or designee shall issue an administrative decision that may sustain or modify the amount of tax owed. Notice of the administrative decision shall be sent to the appellant by certified mail within 10 days of issuance. B. The appellant, if aggrieved by the decision of the Finance Director or designee, may then appeal to the City Hearing Examiner within 20 calendar days of the date the administrative decision is mailed to the appellant. The notice of appeal must state the grounds for appeal, including a detailed explanation of why the administrative decision is incorrect. The notice of appeal must be accompanied by an Appeal Fee in accordance with the fee schedule adopted by resolution of the City Council. C. Upon timely filing of a notice of appeal, the Finance Director shall schedule a hearing on the appeal before the City's Hearing Examiner. The hearing shall be conducted no later than 30 days from the date of the notice of appeal, unless an extension is agreed to by the appellant or otherwise ordered by the Hearing Examiner for good cause shown. Notice of the hearing and the appeal shall be given to the appellant by certified mail at least five days prior to the date of the hearing. D. The hearing shall be governed by the City of Tukwila Hearing Examiner's procedural rules. The hearing shall be de novo. The decision of the City's Hearing Examiner or other hearing body shall be based upon a preponderance of the evidence. The burden of proof shall be on the appellant. The Hearing Examiner or other hearing body may affirm, reverse or modify the Finance Director's decision. E. Within 20 business days, excluding holidays recognized by the City of Tukwila, from the date of the hearing on an appeal under this section, the Hearing Examiner shall issue a written decision which shall set forth the reasons therefor. Section 34. Regulations Established. A new TMC Section 3.27.260 is hereby established to read as follows: 3.27.260 Severability If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. Section 35. Referendum. This ordinance is su bjectto referendum as set forth in RCW 35.21.706. A referendum petition to repeal this ordinance may be filed with the City Clerk within 7 days of adoption of this ordinance. Within 10 days of such filing, the City Clerk shall CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 33 of 34 171 confer with the petitioner concerning form and style of the petition, issue the petition and identifications number, an d secure an accurate, concise, and positive ballot title from the City Attorney. The petitioner shall then have 30 days in which to secure the signatures of not Tess than 15% of the City's registered voters as of the last municipal general election upon petition forms which contain the ballot title and the full text of the measures to be referred. The City Clerk shall verify the sufficiency of the signatures and, if sufficient valid signatures are properly submitted, shall certify the referendum measure to the next election ballot within the City or at a special election ballot as provided pursuant to RCW 35.17.260(2). Section 36. Corrections by City Clerk or Code Reviser Authorized. 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 n umbering and section/su bsection n u mbering. Section 37. 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 38. Effective Date. This ordinance ora summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force on January 1, 2024, 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 , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: Comparison of Deviations from Core Model B&O Provisions and City of Tukwila Provisions CC: Legislative Development\B&O Tax Levy 11-10-22 TC:AY Review and analysis by Andy Youn Page 34 of 34 172 Comparison of Deviations from Core Model Ordinance Provisions and City of Tukwila Provisions B&O TAX PROVISION: Summary of Change from Model B&O Tax Ordinance: .050 Imposition of the tax — tax or fee levied. (2) The gross receipts tax imposed in this section shall not apply to any person whose gross proceeds of sales, gross income of the business, and value of products, including by-products, as the case may be, from all activities conducted within the City during any calendar year is equal to or less than $750,000. .090 Exemptions. • Nonprofit organizations exempt from federal income tax under Section 501(c)(3) of the Internal Revenue code. • Businesses operating as a public card room. • Amateur/Professional/Semi-Professional sports teams operating in the City. 173 174 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by 117ayor's review Council review 10/24/22 NG 11/14/22 NG 11/28/22 NG ITEM INFORMATION ITEM No. Spec 2.A. STAFF SPONSOR: NORA GIERLOFF ORIGINAL AGENDA DATE: 10/24/22 AGENDA 1 FEM TITLE Consolidated Permit Fee Resolution CATEGORY ® Discussion Mtg Date 10/24, 11/14 ❑ Motion 1itgDate ® Resolution Mtg Date 11/21/22 ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mfg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ® DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ® PIF SPONSOR'S SUMMARY The City has previously updated permit fees on a two-year cycle to align with the budget cycle and reflect the cost of service. Staff is suggesting that permit fees increase at 8.5% in 2023 and 7% in 2024 to reflect the City's increased labor and benefit costs due to a rapid rise in inflation. REVIEWED BY ❑ Trans&infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ® Planning & Community Dcv. ❑ LTAC DATE: 10/3/22 ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: CDJ RECOMMENDATIONS: SPONSOR/ADMIN. Department of Community Development CoMMII IEE Direct to full Council COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 10/24/22 Discussed resolution and asked for changes to the residential remodel fee 11/14/22 Forwarded to next Regular Meeting Consent Agenda 11/28/22 MTG. DATE ATTACHMENTS 10/24/22 Informational Memorandum dated 9/26/22 with attachments Planning and Community Development Committee Minutes from 10/3/22 11/14/22 Informational Memorandum dated 9/26/22 with attachments (revised) Draft Resolution (revised after 10/24 C.O.W. Meeting) 11/28/22 Resolution (revised for 11/28 Special Meeting) 175 176 NOTE: The track changes/shaded text shown on Page 10 reflects changes made after this item was discussed at the 10-3-22 Planning and Community Development Committee Meeting and 11-14-22 C.O.W. Meeting. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING RESOLUTION NOS. 2012, 2021, AND 2046, AND ADOPTING A CONSOLIDATED PERMIT FEE SCHEDULE. WHEREAS, the City Council adopted Resolution No. 2012 in 2020, establishing the City's current consolidated permit fee schedule; and WHEREAS, Resolution No. 2012 was amended by Resolution Nos. 2021 and 2046, which amended the fees for wireless permits, tree/landscape permits, and zoning verification letters; and WHEREAS, the Public Works permit structure for infrastructure and right-of-way permits has changed due to an update to Tukwila Municipal Code Chapter 11.08; and WHEREAS, the permit structure for small wireless facilities has changed due to an update of TMC Chapter 18.58; and WHEREAS, the City intends to update permit fees on an annual basis, with any increases tied to growth in City expenses for providing permit services; and WHEREAS, the City Council wishes to recover a portion of the City's costs for review and processing of permit applications; and WHEREAS, the City has adopted a biennial budget process; and WHEREAS, the City's primary cost for permit processing is employee salaries and benefits; and WHEREAS, the Seattle Consumer Price Index (CPI -W) was 9.5% for the June 2022 period; and WHEREAS, the cost for employee benefits has also risen; and WHEREAS, increasing flat fee permits by 8.5% in 2023 and 7% in 2024 will enable revenues to track with increasing City labor costs; and WHEREAS, the permit fees for short plats, subdivisions, development agreements, rezones, and lot consolidations have been increased by larger amounts based on the amount of staff time required and comparison with other jurisdictions; CC: \Legislative Development\Consolidated permit fee schedule 2023-2024 strike-thru 11-21-22 NG:bjs Review and analysis by Barbara Saxton Page 1 of 12 177 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Repealer. Resolution Nos. 2012, 2021, and 2046 are hereby repealed, effective January 1, 2023. Section 2. For 2023 and 2024, the Technology Fee shall be set at 5% of the applicable permit fee. Section 3. Right -of -Way Use and Franchise Permit fees shall be charged according to the following schedule: RIGHT-OF-WAY USE PERMITS FEE SCHEDULE Permit Description 2023 Fee 2024 Fee Right -of -Way Use Permit (ROWUP). Required for (Franchise and Non - Franchise Holders). $276.00 application base fee, Technology Fee and, as applicable, four additional fees based on construction value: 1) Plan Review 2) Construction Inspection 3) Pavement Mitigation 4) Grading Plan Review See Public Works Bulletin Al for fee schedule. $295.00 application base fee, Technology Fee and, as applicable, four additional fees based on construction value: 1) Plan Review 2) Construction Inspection 3) Pavement Mitigation 4) Grading Plan Review See Public Works Bulletin Al for fee schedule. Annual Activities Blanket Permit (AABP). Issued to Existing Franchise Holders. $276.00 application base fee, Technology Fee and, as applicable, two additional fees based on construction value: 1) Plan Review 2) Construction Inspection See Public Works Bulletin Al for fee schedule. $295.00 application base fee, Technology Fee and, as applicable, two additional fees based on construction value: 1) Plan Review 2) Construction Inspection See Public Works Bulletin Al for fee schedule. Franchise application deposit for all franchise applications except cable franchises.' $5,506.00 deposit $5,891.00 deposit 1 Requires a deposit with franchise application. The deposit is intended to cover all administrative expenses incurred by the City (including staff/consultant related time) associated with the review of each franchise application and associated franchise negotiations. Additional fees may apply if additional staff/consultant related time is necessary. Any application fee deposit monies not used for administrative expenses associated with the review of each franchise application and franchise negotiation shall be returned to the applicant following the approval or denial of the franchise by the City Council. This administrative fee excludes normal permit fees required for work within the City rights-of-way. CC: \Legislative Development\Consolidated permit fee schedule 2023-2024 strike-thru 11-21-22 NG:bjs Review and analysis by Barbara Saxton 178 Page 2 of 12 Permit Description 2023 Fee 2024 Fee Franchise Application Fee– Cable $5,506.00 plus 5% of total revenue $5,891.00 plus 5% of total revenue Street Vacation $1,322.00 $1,415.00 Latecomer's Agreements $549.00 processing fee, plus 17% administrative fee, plus $549.00 segregation fee $587.00 processing fee, plus 17% administrative fee, plus $587.00 segregation fee Flood Zone Control Permit $55.00 + Technology Fee $59.00 + Technology Fee Infrastructure Inspector Safety, Investigation or Re -inspection Fee $77.00 per hour $83.00 per hour Infrastructure Inspection Outside of Normal Business Hours (four-hour minimum charge) $116.00 per hour $124.00 per hour Section 4. Land use permit and processing fees will be charged according to the following schedule: LAND USE FEE SCHEDULE All peer review fees will be passed through to the applicant per TMC Section 18.50.200. Decision Type 2023 Fee 2024 Fee Plus Hearing Examiner Fee Plus Technology Fee (TF) APPEALS Appeal of Type 1, 2 and 4 Decisions $743 $795 SEPA MDNS Appeal $743 $795 Appeal of Sign Code Decision $743 $795 Appeal of Fire Impact Fees $743 $795 Appeal of Parks Impact Fees $743 $795 Appeal of Transportation Impact Fees $743 $795 SIGNS (TMC Chapter 19) Permanent $307 $328 + TF Temporary $50 $54 + TF Pole/Banner Initial Application $307 $328 + TF Special Event $133 $142 + TF Pole/Banner Annual Renewal $67 $72 + TF New Billboard $743 $795 + TF Master Sign Program—Admin $2,744 $2,936 + TF Master Sign Program—BAR $4,393 $4,701 + TF CC: \Legislative Development\Consolidated permit fee schedule 2023-2024 strike-thru 11-21-22 NG:bjs Review and analysis by Barbara Saxton Page 3 of 12 179 Decision Type 2023 Fee 2024 Fee Plus Hearing Examine r Fee Plus Technolog y Fee (TF) TUC MODIFICATIONS Modification to TUC Corridor Standards (TMC Section 18.28.130.C) $743 $795 + TF Modification to TUC Open Space Regulations (TMC Section 18.28.250.D.4.d) $743 $795 + TF Transit Reduction to Parking Requirements (TMC Section 18.28.260.B.5.b) $743 $795 + TF DESIGN REVIEW (TMC Section 18.60.030) Administrative $2,822 $3,020 + TF Public Hearing $5,058 $5,412 + TF Major Modification $1,733 $1,854 + TF Minor Modification $788 $843 + TF PARKING VARIANCES AND SPECIAL PERMISSIONS Administrative Parking Variance (Type 2—TMC Section 18.56.140) $743 $795 + TF Parking Variance (Type 3—TMC Section 18.56.140) $1,224 $1,310 + HE + TF Parking Standard for use not specified (TMC Section 18.28.250.D.4.d.1 and TMC Section 18.56.100) $732 $783 + TF Residential Parking Reduction (TMC Section 18.56.065) $743 $795 + TF Shared, covenant, Complementary Parking Reduction (TMC Section 18.56.070) $743 $795 + TF Parking Lot Restriping (TMC Section 18.56.120) $743 $795 + TF VARIANCES, SPECIAL PERMISSIONS AND SITE PLAN REVIEW Variances (TMC Chapter 18.72) $3,571 $3,821 + HE + TF Environmentally Sensitive Areas Deviation, Buffer Reduction (TMC Chapter 18.45) Reduced fee for LDR home- owners, no associated short plat $1,889 $743 $2,021 $795 + TF CC: \Legislative Development\Consolidated permit fee schedule 2023-2024 strike-thru 11-21-22 NG:bjs Review and analysis by Barbara Saxton 180 Page 4 of 12 Decision Type Yp 2023 Fee 2024 Fee Plus Hearingrr Examiner Fee plus Technology Fee (TF) Reasonable Use Exception (TMC Section 18.45.180) $3,778 $4,042 + HE + TF Exception from Single Family Design Standard (TMC Section 18.50.055) $743 $795 + TF Special Permission Cargo Container (TMC Section 18.50.060) $743 $795 + TF Tree Permit for single family residential properties (TMC Chapters 18.44, 18.45 and 18.54, including shoreline and critical areas tree permits) $135 $144 + TF Tree Permit and Landscape Modification Permit and Exceptions for non -single family residential properties (TMC Section 18.53.120, and Chapters 18.44, 18.45 and 18.54, including shoreline and critical areas tree permits) $743 $795 + TF LOT CREATION AND CONSOLIDATION Boundary Line Adjustment (TMC Chapter 17.08) $2,100 $2,247 + TF Lot Consolidation (TMC Chapter 17.08) $1,000 $1,070 + TF Short Plat (2-4 lots) (TMC Chapter 17.12) $6,000 $6,420 + TF Short Plat (5-9 lots) (TMC Chapter 17.12) $8,000 $8,560 + TF Subdivision Preliminary Plat (10+ lots) (TMC Section 17.14.020) $8,500 $9,095 + HE + TF Subdivision Final Plat (10+ lots) (TMC Section 17.12.030) $5,000 $5,350 + TF Binding Site Improvement Plan (TMC Chapter 17.16) $4,823 $5,160 + TF CC: \Legislative Development\Consolidated permit fee schedule 2023-2024 strike-thru 11-21-22 NG:bjs Review and analysis by Barbara Saxton Page 5 of 12 181 Decision Type 2023 Fee 2024 Fee Plus Hearing Examiner Fee Plus Technology Fee (TF) Planned Residential Development— Administrative (TMC Section 18.46.110) $2,744 $2,936 + TF Planned Residential Development— Public Hearing (TMC Section 18.46.110) $6,298 $6,739 + TF Planned Residential Development— Minor Modification (TMC Section 18.46.130) $743 $795 + TF Planned Residential Development— Major Modification (TMC Section 18.46.130) $3,063 $3,277 + TF WIRELESS COMMUNICATION FACILITY (TMC Section 18.58.050) Eligible Facilities Modification $743 $795 + TF Substantial Change $2,118 $2,266 + TF New Macro Facility $4,237 $4,534 +HE + TF SMALL WIRELESS COMMUNICATION FACILITY PERMITS (TMC Chapter 23.04) Non-recurring fee per application, which covers up to 5 small wireless communication facilities (SWF), plus added fee for each additional SWF beyond 5 $543 for up to 5 $109 for each additional $580 for up to 5 $116 for each additional + TF Non-recurring fee per application for each new pole intended to support one or more SWF $1,085 $1,161 + TF Recurring site fee (per year) for locating a SWF on City property $293 $313 + TF SEPA AND ENVIRONMENTAL Checklist $2,157 $2,308 + TF SEPA EIS $3,778 $4,042 + TF SEPA Planned Action $743 $795 + TF SEPA Addendum $743 $795 + TF SEPA Exemption Letter $442 $473 + TF Critical Area Master Plan Overlay (TMC Section 18.45.160) $6,298 $6,739 + TF CC: \Legislative Development\Consolidated permit fee schedule 2023-2024 strike-thru 11-21-22 NG:bjs Review and analysis by Barbara Saxton 182 Page 6 of 12 Decision Type 2023 Fee 2024 Fee Plus Hearing Examiner Fee Plus Technology Fee (TF) SHORELINE PERMITS Project value: $5,000 - $10,000 $1,492 $1,596 + TF $10,001 - $50,000 $3,493 $3,737 + TF $50,001 - $500,000 $5,566 $5,956 + TF More than $500,000 $7,059 $7,553 + TF Permit Exemption Letter, Shoreline $307 $329 + TF Shoreline Permit Revision $771 $825 + TF Conditional Use Permit, Shoreline (TMC Section 18.44.050) $4,901 $5,244 + HE + TF Shoreline Environment Redesignation $3,778 $4,042 + TF NOISE VARIANCES (TMC Section 8.22.120) Type I $609 $651 + TF Type II $827 $885 + TF Type III $1,839 $1,968 + HE + TF USE PERMITS Conditional Use Permit (TMC Section 18.64.020) $4,901 $5,244 + HE + TF Unclassified Use Permit (TMC Chapter 18.66) $6,298 $6,739 + TF TSO Special Permission Use $1,224 $1,310 + HE +TF COMPREHENSIVE PLAN CHANGES (TMC Chapter 18.84) Rezone (Map Change - separate Comprehensive Plan amendment fees also apply) $8,000 $8,560 + TF Comprehensive Plan Amendment $5,035 $5,388 + TF Zoning Code Text Amendment $5,729 $6,130 + TF MISCELLANEOUS SERVICES AND CHARGES Development Agreement $5,000 $5,350 + TF Code Interpretation (TMC Section 18.96.020) $442 $473 + TF Zoning Verification Letter (Up to two contiguous parcels; $50 for each additional parcel.) $442 $473 + TF Legal Lot Verification $704 $753 + TF Preapplication Meeting $609 $651 + TF In -lieu Tree Replacement Fee $458 $490 CC: \Legislative Development\Consolidated permit fee schedule 2023-2024 strike-thru 11-21-22 NG:bjs Review and analysis by Barbara Saxton Page 7 of 12 183 Section 5. Building permit fees will be charged according to the following schedule: BUILDING PERMIT FEE SCHEDULE Total Valuation Building Permit Fees $1 to $500 Plus Hearing Plus Decision Type 2023 Fee 2024 Fee $25,001 to $50,000 Technology $50,001 to $100,000 $1,104.49 for the first $50,000, plus $11.90 for each additional $1,000, or fraction thereof, to and including $100,000, + Technology Fee $100,001 to $500,000 Examiner Fee (TF) $5,511.25 for the first $500,000, plus $7.86 for each additional $1,000, or fraction thereof, to and including $1,000,000, + Technology Fee $1,000,001 to $5,000,000 $9,484.31 for the first $1,000,000, plus $5.27 for each additional $1,000, or fraction thereof, to and including $5,000,000, + Technology Fee Fee $30,602.36 for the first $5,000.000, plus $5.05 for each $1,000 or fraction thereof, + Technology Fee Mailing Fee to Generate Labels, per project $575 $615 Public Notice Mailing Fee per address for each mailing $1 $1 Section 5. Building permit fees will be charged according to the following schedule: BUILDING PERMIT FEE SCHEDULE Total Valuation Building Permit Fees $1 to $500 $73.01 + Technology Fee $501 to $2,000 $73.01 for the first $500, plus $4.83 for each additional $100, or fraction thereof, to and including $2,000, + Technology Fee $2,001 to $25,000 $145.47 for the first $2,000, plus $22.01 for each additional $1,000, or fraction thereof, to and including $25,000, + Technology Fee $25,001 to $50,000 $674.44 for the first $25,000, plus $17.19 for each additional $1,000, or fraction thereof, to and including $50,000, + Technology Fee $50,001 to $100,000 $1,104.49 for the first $50,000, plus $11.90 for each additional $1,000, or fraction thereof, to and including $100,000, + Technology Fee $100,001 to $500,000 $1,697.97 for the first $100,000, plus $9.55 for each additional $1,000, or fraction thereof, to and including $500,000, + Technology Fee $500,001 to $1,000,000 $5,511.25 for the first $500,000, plus $7.86 for each additional $1,000, or fraction thereof, to and including $1,000,000, + Technology Fee $1,000,001 to $5,000,000 $9,484.31 for the first $1,000,000, plus $5.27 for each additional $1,000, or fraction thereof, to and including $5,000,000, + Technology Fee $5,000,001 and up $30,602.36 for the first $5,000.000, plus $5.05 for each $1,000 or fraction thereof, + Technology Fee A. Non -Structural Plan Review Fee. A non-structural plan review fee shall be paid at the time of submitting plans and specifications for review. The non-structural plan review fee shall be 65% of the calculated permit fee as set forth in the permit fee schedule. The non-structural plan review fee specified herein is a separate fee from the permit fee and is in addition to the permit fee. B. Structural Plan Review Fee. Where a structural plan review is deemed necessary, a structural plan review fee shall be charged. The structural plan review fee shall be 35% of the calculated non-structural plan review fee. C. Total Value of All Construction Work. The latest Building Data Valuation that is updated twice a year by the International Code Council shall be used for the purposes of calculating value of the construction work. CC: \Legislative Development\Consolidated permit fee schedule 2023-2024 strike-thru 11-21-22 NG:bjs Review and analysis by Barbara Saxton 184 Page 8 of 12 Section 6. Mechanical permit fees will be charged according to the following schedule: MECHANICAL PERMIT FEE SCHEDULE Valuation of Work (Total Contract Amount) Mechanical Permit Fee Unit Fee Schedule (in addition to base fee above: $36.50 for issuance of each permit (base fee) + Technology Fee $250 or less $73.01 + Technology Fee $251 to $500 $73.01 for first $250, plus $8.79 for each $100 or fraction thereof, to and including $500, + Technology Fee $501 to $1,000 $95.02 for the first $500, plus $9.77 for each $100 or fraction thereof, to and including $1,000, + Technology Fee $1,001 to $5,000 $143.88 for the first $1,000, plus $10.83 for each $1,000 or fraction thereof, to and including $5,000, + Technology Fee $5,001 to $50,000 $187.25 for the first $5,000, plus $11.28 for each $1,000 or fraction thereof, to and including $50,000, + Technology Fee $50,001 to $250,000 $718.00 for the first $50,000, plus $9.43 for each $1,000 or fraction thereof, to and including $250,000, + Technology Fee $250,001 to $1,000,000 $2,605.15 for the first $250,000, plus $8.31 for each $1,000 or fraction thereof, to and including $1,000,000, + Technology Fee $1,000,001 and up $8,839.46 for the first $1,000,000, plus $7.52 for each $1,000 or fraction thereof, + Technology Fee Section 7. Plumbing permit fees will be charged according to the following schedule: PLUMBING PERMIT FEE SCHEDULE Permit Issuance—Issuance of each permit (base fee) $36.50 + Technology Fee Unit Fee Schedule (in addition to base fee above: For one plumbing fixture (a fixture is a sink, toilet, bathtub, etc.) $73.01 + Technology Fee For each additional fixture $16.51 + Technology Fee For each building sewer and each trailer park sewer $27.53 + Technology Fee Rain water system — per drain (inside building) $16.51 + Technology Fee For each water heater and/or vent $16.51 + Technology Fee For each industrial waste pretreatment interceptor, including its trap and vent, except for kitchen type grease interceptors $33.04 + Technology Fee For each grease interceptor for commercial kitchens $33.04 + Technology Fee For each repair or alteration of water piping and/or water treating equ�ment, each occurrence $16.51 + Technology Fee For each repair or alteration of drainage or vent piping, each fixture $16.51 + Technology Fee For each medical gas piping system serving one to five inlets/outlets for a specific gas $ 93.60 + Technology Fee CC: \Legislative Development\Consolidated permit fee schedule 2023-2024 strike-thru 11-21-22 NG:bjs Review and analysis by Barbara Saxton Page 9 of 12 185 For each additional medical gas inlets/outlets $18.68 + Technology Fee For each lawn sprinkler system on any one (1) meter including backflow protection devices therefor. $33.04 + Technology Fee For atmospheric -type vacuum breakers not included in lawn sprinkler backflow protection: 1 to 5 $16.51 + Technology Fee Over 5 $16.51 for first 5 plus $3.57 for each additional + Technology Fee $73.01 + Technology Fee For each backflow protective device other than atmospheric type vacuum breakers: 2 -inch diameter and smaller $33.04 + Technology Fee Over 2 -inch diameter: $36.34 + Technology Fee $16.51 + Technology Fee Section 8. Fuel Gas Piping permit fees will be charged according to the following schedule: FUEL GAS PIPING PERMIT FEE SCHEDULE Permit Issuance For issuing each permit (base fee): ($0 if permit is in conjunction with a plumbing permit for an appliance with both plumbing and gas connection.) $36.50 + Technology Fee Unit Fee Schedule For each gas piping system of one to five outlets $73.01 + Technology Fee For each additional gas piping system outlet, per outlet $16.51 + Technology Fee Section 9. Electrical permit fees will be charged according to the following schedule: ELECTRICAL PERMIT FEE SCHEDULE 1. NEW SINGLE-FAMILY DWELLINGS New single-family dwellings (including a garage) $196.06 + Technology Fee Garages, pools, spas and outbuildings $132.15 + Technology Fee Low voltage systems $66.08 + Technology Fee 2. SINGLE-FAMILY REMODEL AND SERVICE CHANGES Service change or alteration—no added/altered circuits $132.15 + Technology Fee Service change $100.50 $109.04 added/altered circuits, $109.04 + Technology Fee with plus $40,1-5-$11.01 for each added circuit (maximum permit fee $162.40 $176.20) Circuits added/altered without service change (includes up to 5 circuits) $66.08 + Technology Fee Circuits $60.90-$66.08 added/altered without service change (more $66.08 + Technology Fee than 5 circuits); $40.15 $11 ' for each added circuit (maximum permit fee $100.50 $109.04 + Technology Fee) Meter/mast repair $88.10 + Technology Fee Low voltage systems $66.08+ Technology Fee CC: \Legislative Development\Consolidated permit fee schedule 2023-2024 strike-thru 11-21-22 NG:bjs Review and analysis by Barbara Saxton 186 Page 10 of 12 3. MULTI -FAMILY AND COMMERCIAL (including low voltage) Valuation of Work (Total Contract Amount) Permit Fee $250 or less $73.01 + Technology Fee $251 - $1,000 $73.01 for the first $250 plus $4.83 for each $100 or fraction thereof, to and including $1,000, + Technology Fee $1,001 - $5,000 $108.97 for the first $1,000 plus $24.26 for each $1,000 or fraction thereof, to and including $5,000, + Technology Fee $5,001 - $50,000 $205.90 for the first $5,000 plus $19.88 for each $1,000 or fraction thereof, to and including $50,000, + Technology Fee $50,001 - $250,000 $1,099.88 for the first $50,000 plus $14.48 for each $1,000 or fraction thereof, to and including $250,000, + Technology Fee $250,001 - $1,000,000 $4,007.02 for the first $250,000 plus $10.26 for each $1,000 or fraction thereof, to and including $1,000,000, + Technology Fee Over $1,000,000 $11,728.04 plus 0.5% of cost over $1,000,000, + Technology Fee 4. MISCELLANEOUS ELECTRICAL PERMIT FEES Temporary service (residential) $113.93 + Technology Fee Temporary service/generators $113.93 + Technology Fee Manufactured/mobile home parks and RV park sites, each service and feeder $113.93 + Technology Fee Carnivals: • Base fee $113.93 + Technology Fee • Each concession fee $12.11 + Technology Fee • Each ride and generator truck $12.11 + Technology Fee Inspections or plan review not specified elsewhere (one hour minimum). $113.93 per hour Safety inspections, plan revisions $113.93 per hour Adult family home inspection (paid at the time of scheduling the inspection) $113.93 for each inspection Residential structure remodel or repair (up to $20,000 construction value) $45.00 CC: \Legislative Development\Consolidated permit fee schedule 2023-2024 strike-thru 11-21-22 NG:bjs Review and analysis by Barbara Saxton Page 11 of 12 187 Section 10. Other inspections and fees will be charged according to the following schedule: OTHER INSPECTIONS AND FEES Inspections outside of normal business hours (four hour minimum charge) $115.63 per hour Re -inspection fee (minimum charge one hour) $115.63 per hour Inspection for which no fee is specifically indicated—investigations or safety inspections $115.63 per hour Additional plan review required by changes, additions, or revisions to approved plans $115.63 per hour Work commencing before permit issuance shall be subject to an investigation fee equal to 100% of the permit fee. 100% of the permit fee Plan review fee—Mechanical, Plumbing, Fuel Gas Piping and Electrical: The fee for review shall be 25% of the total calculated permit fee. The plan review fee is a separate fee from the permit fee and is required when plans are required in order to document compliance with the code. Work covered prior to inspection or work not ready at the time of inspection may be charged a re -inspection fee of $115.63. Expired permit final – includes two inspections $154.18 Expired permit final – each additional inspection $77.09 Minor residential remodel plan review and permit (projects valued up to $20,000 including building, mechanical, electrical, and plumbing within 1 year) $45.00 Certificate of Occupancy replacement $113.93 Section 11. Effective Date. This resolution and the fee schedules contained herein shall be effective January 1, 2023. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Special Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Thomas McLeod, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney CC: \Legislative Development\Consolidated permit fee schedule 2023-2024 strike-thru 11-21-22 NG:bjs Review and analysis by Barbara Saxton 188 Page 12 of 12 UPCOMING MEETINGS AND EVENTS NOVEMBER - DECEMBER 2022 City Council meetings and Council Committee meetings will be conducted in a hybrid model, with in-person and virtual attendance available. NOV 28 MON NOV 29 TUE NOV 30 WED DEC 1 THU DEC 2 FRI DEC 3 SAT D Community Services and Safety Committee 5:30 PM City Hall - Hazelnut Room Hybrid Meeting D Finance and Governance Committee 5:30 PM 6300 Building - Duwamish Room on 2nd Floor Hybrid Meeting ➢ City Council Committee of the Whole Meeting 7:00 PM City Hall Council Chambers Hybrid Meeting Special Meeting to immediately follow Committee of the Whole Meeting. >Arts Commission 6:00 PM Tukwila Community Center Give Blood = Save 3 Lives cup cu. ta - • - • - - DONATE BLOOD AND ENTER TO WIN A NINTENDO SWITCH PLUS 3 VIDEO GAMES (FINAL DAY TO WIN TODAY!) OR A VIP GRAMMY AWARDS EXPERIENCE! Your donation is critical! Our community is dangerously low on the platelets and Type 0 blood needed to supply each of the cancer and surgery patients. To schedule an appointment, call 1-800-398-7888. Click here to schedule an appointment online. D Equity and Social Justice Commission 5:30 PM Tukwila Justice Center 15005 Tukwila Intl Blvd Hybrid Meeting t.� �� p SPIRIT GIVING—0 Uf v SPIRIT OF GIVING CAMPAIGN FOR FAMILIES IN NEED Tukwila Parks & Recreation is partnering with Rotary Club of SeaTac-Tukwila for the 2022 Spirit of Giving Campaign. Together, we will reduce financial stress for caregivers and help create a time of ease and joy for Tukwila School families in need. Our goal is to serve 350 or more children this year. You can help by hosting a collection drive at your church, school, office, etc. Or, donate unwrapped items, gift cards or money. Click here for more information. DEC 5 MON DEC 6 TUE DEC 7 WED DEC 8 THU DEC 9 FRI DEC 10 SAT Planning and Community Development Committee 5:30 PM City Hall - Hazelnut Room Hybrid Meeting >Transportation and Infrastructure Services Committee 5:30 PM 6300 Building - Duwamish Room on 2'd Floor Hybrid Meeting D City Council Regular Meeting 7:00 PM City Hall Council Chambers Hybrid Meeting 3-Library-Advisory Beard Rescheduled to Dec 13 w = AMPHIBIANS IN THE CITY Join us for a FREE evening talk about Amphibians with Max Lambert, Ph.D. Learn about urban amphibians diversity living around us in Western Washington. Sign up now! 5:45 PM — 7:00 PM Tukwila Community Center Click here to register. ➢Planning Commission 6:30 PM Tukwila Community Center D Community-dented Policies g Citizc ns Advisory Board Cancelled ,:w�1.6 � , 12 DAYS OF GOODNESS WITH SEATTLE SEAHAWKS This free event will be held on Dec 14 for Veterans (50 + years) and their family only. Includes special guest appearances by Seahawks Legends and surprise entertainment. Enjoy lunch, prizes and photo opportunities. Burien can transport up to 10 participants. First come, first served. Click here to register. � R A 1 N! ER 7. - - �r�r� HOLIDAY CONCERT Dec 10 Saturday 7:30 PM Dec 11 Sunday 3:00 PM Foster Performing Arts Center 4242 S 144'" St Click here to buy tickets. �,,_ a. r POLICE DEPARTMENT IS HIRING! s Join our team and write your future chapter with us. Become a part of our Tukwila PD family and our community. We offer a supportive environment c 5 including a supportive community, supportive elected officials, supportive command staff and opportunities to train and build your future with us. We are r hiring Entry Level and Lateral Officers. Click here for more information. ros, POLICE DEPARTMENT HIRING PROCESS VOLUNTEERS NEEDED Tukwila Police Department is seeking members of the community who are interested in volunteering with the Police Department hiring process as members of an interview panel for selection of Police Department staff. Click here for more information and to apply. DRIVE THRU PICK-UP 3118 S 140TH ST TUESDAYS, THURSDAYS AND SATURDAYS 10:00 AM - 2:00 PM .*''"w'r'4* VOLUNTEERS - In need of volunteers for food packaging or food distributions. To volunteer, click here to sign up. 9 DONORS - Please donate at tukwilapantry.org/donate/. STILL WATERS SNACK PACK NEEDS YOUR DONATIONS AND VOLUNTEER HELP! o� SnackPack distributes food bags on Fridays to Tukwila students in need.;] -.. VOLUNTEERS NEEDED ON WEDNESDAYS, THURSDAYS AND FRIDAYS. f,, 7._ , To volunteer, email Stillwatersfamilyservices@gmail.com. To deliver food, click here to register with Tukwila School District. 'Please donate to feed our Tukwila kids. Click here to donate online or mail checks to Still Waters, PO Box 88984, Tukwila WA 98138. r�` .fti o ka VIA TO TRANSIT Get around town with the click of a button or a phone call. Use Via to Transit for fast and affordable rides to the Tukwila Community Center, Tukwila Light Rail Station, or from these hubs to nearby locations. Like other transit, this service is free for youth. Click here for more information. KingCoulltY COVID-19 VACCINATION All Washingtonians ages 5 and up are eligible to receive a COVID-19 vaccination—and now also babies and children 6 months and older. For more information, visit Getting vaccinated in King County or call 206-477-3977. You can also search at vaccinelocator.doh.wa.gov Interpreters available for assistance. Telephone-to-text relay service: Dial 711 or 1-800-833-6384. Tactile interpretation: seattledbsc.org. FREE Learn with disabilities GET Take free EMPLOYMENT SERVICES AND SKILLS TRAINING about the free services and programs provided by Puget Sound Training Center. Registration not required. Reasonable accommodation for people per request. Email access@kcls.org at least 7 days before the event. Click here for more information and multiple dates. CERTIFIED AT YOUR LIBRARY FOR FREE! online classes, practice tests and Certiport certification exams. Get certified in MS Office, Adobe, QuickBooks, coding and more! You will your KCLS library card number and PIN to access some resources. Click here for more information and registration. EARN BELLEVUE COLLEGE CREDIT! Cisco, and apply for college credit from Bellevue College. The courses are online, self-paced and free. and register to enroll in the tech courses. K 1 N G COUNTY ikr LIBRARY SYSTEM need FREE TECH COURSES & Take free tech courses from Click here for more information 189 Tentative Agenda Schedule MEETING 1 — REGULAR MEETING 2 — C.O.W. MEETING 3 — REGULAR MEETING 4 — C.O.W. NOVEMBER 7 See below link for the agenda packet to view the agenda items: November 7, 2022 Regular Meeting NOVEMBER 14 See below link for the agenda packet to view the agenda items: November 14, 2022 Committee of the Whole Meeting NOVEMBER 21 See below link for the agenda packet to view the agenda items: November 21, 2022 Regular Meeting NOVEMBER 28 See below link for the agenda packet to view the agenda items: November 28, 2022 Committee of the Whole / Special Meeting MEETING 1 — REGULAR MEETING 2 — C.O.W. MEETING 3 — REGULAR MEETING 4 — C.O.W. DECEMBER 5 CONSENT AGENDA - Approve an application for Lodging Tax Funds from the City of Tukwila for Experience Tukwila for $190,000.00, 2023-2024 Basic Operations for $338,048.00, and 2023-2024 Seattle SeaWolves Partnership for $150,000.00. - Resolution adopting a Legislative Agenda for use during the 2023 Washington State Legislative Session. - Puget Sound Regional Fire Authority (PSRFA): - Authorize the Mayor to sign a lease agreement with the Puget Sound Regional Fire Authority for Fire Station 51, 17951 Southcenter Parkway, Tukwila, WA. - Authorize the Mayor to sign a lease agreement with the Puget Sound Regional Fire Authority for Fire Station 52, 15447 65th Avenue South, Tukwila, WA. - Authorize the Mayor to sign a lease agreement with the Puget Sound Regional Fire Authority for Fire Station 53, 4202 South 115t Street, Tukwila, WA. - Authorize the Mayor to sign a lease agreement with the Puget Sound Regional Fire Authority for Fire Station 54, 4237 South 144th Street, Tukwila, WA. - An ordinance repealing Ordinance No. 1317 regarding the Office of Fire Chief thereby eliminating Tukwila Municipal Code chapter 2.24, "Fire Chief." - An ordinance repealing Ordinance No. 2528, reenacting Tukwila Municipal Code Chapter 2.42, "Civil Service Commission," to eliminate references to a City Fire Department. - An ordinance repealing Ordinance Nos. 167, 548, 572, 842 and 1223; reenacting Tukwila Municipal Code Chapter 2.48, "City Fire Department Pension participants," to maintain State death and disability provisions. - An ordinance repealing Ordinance No. 1276; reenacting Tukwila Municipal Code 2.92 "Hazardous Materials Incident Command Agency," to update designation. - A resolution expressing the intent to pursue the benefits of receiving fire and emergency medical services from the Puget Sound Regional Fire authority via annexation. UNIFINISHED BUSINESS - Impact Fee updates: - An ordinance amending Ordinance #2571 to update the Fire Impact Fee Schedule, as codified in Tukwila Municipal Code Chapter 16.26 as Figure 16-1, "Fee Schedule;" repealing Ordinance #2643. - An ordinance amending Ordinance #2572 to update the Parks Impact Fee Schedule as codified in Tukwila Municipal Code Chapter 16.28 as Figure 16-1, "Fee Schedule;" repealing Ordinance #2644. - Authorize the Mayor to sign a Grant Agreement with the Association of Washington Cities for the Co -Responder Program in the amount of $92,083.00. DECEMBER 12 SPECIAL ISSUES - An ordinance authorizing the use of automated speed cameras in Park zones. - An update on the Public Works Shops Phase 2 — Test -to -Fit project. - A resolution repealing Resolution #2018 and adopting a revised Fire Department Fee Schedule. - Fleet Surplus Resolution. - Economic Development Plan, Vision and Goals. Special Meeting to follow Committee of the Whole Meeting. CONSENT AGENDA - An ordinance authorizing the use of automated speed cameras in Park zones. - A resolution repealing Resolution #2018 and adopting a revised Fire Department Fee Schedule. - Authorize the Mayor to accept the Periodic Comprehensive Plan Update Grant with Washington State Department of Commerce in the amount of $125,000.00. - Authorize the Mayor to accept the 2023-2024 Waste Reduction and Recycling Grant with King County in the amount of $65,972.00. - Accept as complete the 2021 Small Drainage Program; authorize release of retainage, subject to the standard claim and lien procedures (final cost of project, including retainage). - Fleet Surplus Resolution. DECEMBER 19 Regular Meeting is typically cancelled. DECEMBER 26 Committee of the Whole Meeting is typically cancelled. 190