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COW 2023-11-27 COMPLETE AGENDA PACKET
Monday, Tukwila City Council Agenda �J�1LA wqs o tiz .-1au+ � ❖ COMMITTEE •OF THE WHOLE ❖ Allan Ekberg, Mayor Counci/members: ❖ Kathy Hougardy ❖ De'Sean Quinn David Cline, City Administrator ❖ Kate Kruller ❖ Thomas McLeod Cynthia Delostrinos Johnson, Council President ❖ Mohamed Abdi ❖ Tosh Sharp 1908 THE MEETING ON -SITE PRESENCE THE November WILL BE PHONE NUMBER For Technical 27, 2023; CONDUCTED BOTH ON -SITE AT TUKWILA CITY HALL AND ALSO VIRTUALLY. WILL 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 Salish people. We acknowledge their continuing connections to land, waters and culture. We pay our respects to their eiders 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 P.M. 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. An update on HealthPoint's Health & Wellness Center project. b. An ordinance granting Valley View Sewer District a non-exclusive franchise to construct, maintain, operate, replace and repair a sewer system within public rights -of -way of the City of Tukwila, and fixing a time when the same shall become effective. c. An ordinance amending the Business & Occupation Tax. d. A contract for the Tukwila Community Center Business Plan and Recreation Programming Plan. e. An update on the encampment at Riverton Park United Methodist Church (RPUMC). f. An ordinance clarifying noise regulations. g. A resolution adopting a legislative agenda for use during the 2024 Washington State Legislative Session. Pg.1 Pg.15 Pg.49 Pg.83 Pg.97 Pg.99 Pg.119 (continued...) COMMITTEE OF THE WHOLE MEETING November 27, 2023 Page 2 5. REPORTS a. Mayor b. City Council c. Staff 6. MISCELLANEOUS 7. EXECUTIVE SESSION 8. ADJOURN TO SPECIAL MEETING ❖ SPECIAL MEETING ❖ ■ Ord #2723 ■ Res #2084 1. CALL TO ORDER / ROLL CALL 2. UNFINISHED BUSINESS An ordinance amending Ordinance No. 2293 §2, §3, §5, and §6, as codified at Tukwila Municipal Code (TMC) Chapter 8.22, "Noise," to clarify noise regulations. Pg.99 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 clearly 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 11/27/23 DCS ITEM INFORMATION ITEM NO. 4.A. STAFF SPONSOR: PETE MAYER ORIGINAL AGENDA DATE: 11/27/23 AGENDA ITEM TITLE Status update on HealthPoint's future Tukwila Health and Wellness Center CATEGORY ❑ Discussion Mtg Date 11/27/23 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Altg Date ❑ Public Hearing Mtg Date ❑ Other Altg Date SPONSOR ❑ Council ® Mayor ❑ Admin Svcs ❑ DCD Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY HealthPoint wold like to brief the Council on their progress to build a Health and Wellness Center in Tukwila. This item is information only. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED $o AMOUNT BUDGETED $o APPROPRIATION REQUIRED $o Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/23 MTG. DATE ATTACHMENTS 11/27/23 Informational Memorandum PowerPoint 1 2 TO: FROM: CC: DATE: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM City Council Derek Speck, Economic Development Administrator Mayor Ekberg November 20, 2023 SUBJECT: Update on HealthPoint's Tukwila Health and Wellness Center ISSUE Representatives from HealthPoint will provide an update on their plans to construct a new Health and Wellness Center in Tukwila. BACKGROUND In 2014 and 2015 the City purchased five parcels of land along Tukwila International Boulevard just south of Tukwila Village (formerly the Great Bear Motel, Boulevard Motel, Spruce Motel, and Sam Smoke Shop). Two of the motels had been seized in 2013 by the Federal Government after an extensive undercover operation led by the Tukwila Police Department. The City purchased the properties as part of a community renewal and public safety project to reduce crime. In 2016 the City completed demolition of the structures, conducted a process to select a developer and selected HealthPoint to purchase the property to build a new health and wellness center. Since that time HealthPoint has been seeking funding, conducting a community needs assessment, seeking partners, and planning the project. In December 2020 the City and HealthPoint entered into a purchase and sale agreement. We closed escrow in June 2023 and HealthPoint became the property owner. In 2022 HealthPoint purchased the property at 3920 South 146th Street, which previously was a pawn shop. They demolished the structure in 2023. DISCUSSION This project will bring many benefits for our residents and businesses. HealthPoint recognizes this is an important project for Tukwila and would like to keep the Council apprised of their progress. They provided their most recent update to Council in April 2022 and would like to provide a more current update. FINANCIAL IMPACT None RECOMMENDATION Information Only. ATTACHMENTS Presentation 3 4 Vicki Hammond - CFO Sherry Williams - VP Community Engagement Tukwila City Council Nov. 27, 2023 Q) 2.24 acres at S 146th and TIB r, HealthPoint Everyone Deserves Great Care 2 Our Vision For HealthPoint in Tukwila Campus Life Integration • ct.•I le +.0,•10 Community /HealthPoint • Partners MI 41c-1111 Individual Experience We Offer Holistic , Solutions Patients:Healthy We Encourage Sustainability 0 ���+ We Continuously Learn, Innovate and Assess ‘1111""iiii" -eh- We Lead Bravely with Equity We Are Healthier Together Patients: Chronic illness but stable t Patients:Chronic conditions with complex needs Community Members � HealthPoint ,� Everyone Deserves Great Care 3 • Land Acquisition Update Cash America vacated on 6/1/2022 Closed with the City on 6/30/2023 Demo completed late July Ongoing coordination with the City, Police and Fire to ensure site security, safety, a n d appearance (v) HealthPoint Everyone Deserves Great Care 4 Phase 1 Progress - Targeted opening April 2027 Phase 1 HealthPoint clinic will include medical, dental, pharmacy, behavioral health, and an acute care clinic with extended hours. Through a RFQ Process, the YMCA has been identified as our partner for an early childhood development center. - Largest provider of childcare programs in WA - Will serve infants, toddlers, pre-school, and pre-K - Accepts Working Connections Childcare Subsidies and provides direct financial assistance through a sliding scale Pre -Application meeting held with city 11/21/23, permit to be submitted to city in Spring 2024 (v) HealthPoint Everyone Deserves Great Care 5 i (0 Tukwila Health and Wellness Center Site HealthPoint v) Everyone Deserves Great Care Recent Renderings 0 Everyone Deserves Great Care ,� HealthPoint 7 Phase 2 Planning We continue to connect with community partners, stakeholders and organizations to confirm interest in partnering for the health, wellness, housing, early childhood and economic development needs of Tukwila. In partnership with Tukwila Parks and Rec and Global to Local, we hosted 2 Community Cafes on Sept. 14 and Nov. 16 to gather community input and guidance. Plan to finalize our partnership model by October 2024 with an opening date TBD based on timing of our partners. Ongoing collaboration with city leadership and staff will be crucial to help identify the highest and best use of the space, and partnership is always welcome. 0)) HealthPoint yEveryone Deserves Great Care 8 Comments and Questions HealthPoint v) Everyone Deserves Great Care 14 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by ellayorr review Council review 11/27/23 JR 12/04/23 JR ITEM INFORMATION ITEM No. 4.B. STAFF SPONSOR: SEONG KIM ORIGINAL AGENDA DATE: 11/27/23 AGENDA ITEM TITLE Franchise Agreement with the City of Tukwila and the Valley View Sewer District CATEGORY 0 Discussion 11/27/23 11 Motion Date 12/04/23 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Altg Date ❑ Other Mtg Date Altg Date Mtg SPONSOR ❑Council ❑Mayor HR DCD ❑Finance Fire IS P&R ❑Police P1F Court SPONSOR's The City has been pursuing Franchise Agreements with all of the Water and Sewer Districts SUMMARY in Tukwila and Valley View Sewer District is the last Water/Sewer Utility operating in Tukwila's boundaries without a Franchise Agreement. The goal is to create clarity around a variety of issues, ensure equity and create substanital cost savings for Valley View Sewer District while ensuring the City's interests in properly managing its ROW are protected.The Council is being asked to approve the agreement. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Comm. ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/20/23 COMMITTEE CHAIR: TOSH SHARP RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Public Works Department Forward to Committee of the Whole and Regular Consent Agenda COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/23 12/04/23 MTG. DATE ATTACHMENTS 11/27/23 Informational Memorandum dated 11/17/23 Sewer District Map Brochure Draft Ordinance Minutes from T&I Committee meeting of 11/20/23 (distributed separately) 12/04/23 15 16 City of Tukwila Allan Ekberg, Mayor Public Works Department - Hari Ponnekanti, Director/City Engineer INFORMATIONAL MEMORANDUM TO: Transportation and Infrastructure Services Committee FROM: Hari Ponnekanti, Public Works Director BY: Seong Kim, Deputy Public Works Director -Utilities CC: Mayor Ekberg DATE: November 17, 2023 SUBJECT: Franchise Agreement with the City of Tukwila and the Valley View Sewer District ISSUE Approve the Franchise Agreement with the City of Tukwila (The City) and the Valley View Sewer District (VVSD). BACKGROUND The City is pursuing a Franchise Agreement with all the Water and Sewer Districts in Tukwila. The City recently completed Franchise Agreements with Water District 125 and Highline Water District; Valley View Sewer District is the last Water/Sewer Utility with a significant presence in the City without a Franchise Agreement. The City's goal in pursuing franchise agreements is to clarify various issues, including permitting procedures, notice requirements before accessing and working in the ROW, updated insurance and indemnification procedures, and application of applicable costs, fees, or taxes. By entering into franchises with all the water and sewer districts, the City can ensure that all the districts are treated equitably and that the processes and procedures applied are similar. For example, it was sometimes difficult and time- consuming for the districts to acquire necessary permits from the City, especially for routine maintenance activities. Through the franchise agreements, the City can provide the districts with "Blanket Activities" for routine maintenance activities, which, for VVSD, comprises the majority of their permit process. This streamlined permit process will create substantial cost savings for VVSD while ensuring the City's interests in properly managing its ROW are protected. The City staff reviewed this approach's merits and conducted extensive discussions on this subject. DISCUSSION 1. This is the final water/sewer district operating in the City that the City plans to enter a franchise agreement with. 2. VVSD serves 1974 residential customers and 166 business accounts located within the City of Tukwila. The City finds that the entire sewer system operated and maintained by VVSD is reasonably stable and reliable. 3. VVSD's revenue from the City was $1,563,408 in 2022. Accordingly, the annual franchise fee of 6% would have generated $93,804 in 2022. 17 INFORMATIONAL MEMO Page 2 4. City staff found that establishing a franchise agreement that allows "Blanket Activities" will be a win -win situation for both parties. 5. VVSD can carry out efficient operation and maintenance activities for the City's residents by acquiring a time -saving permit process from the City, which can save time and cost. 6. The City does not anticipate any negative impacts on its operation by allowing "Blanket Permit Activities". "Blanket Permit Activities" will be specifically determined every year. "Blanket Activities" means: • Routine maintenance activities which Include simple service for customers, accessing and maintaining vaults, adjusting valves, vegetation management, installing sampling stations, flushing activities, and lining pipes. • Does not include cutting, removing, or disturbing the pavement surface. These activities require permits from the City. The City Attorney's office reviewed this draft and is in the process of negotiating it with VVSD. VVSD's legal team tentatively agreed upon the draft for execution but is awaiting their final board approval. FINANCIAL IMPACT The VVSD's revenue of $1,563,408 came from the boundary of the City of Tukwila in 2022. The annual franchise fee, 6% of the revenue, would have been $93,804 in 2022. RECOMMENDATION The Council is being asked to approve the agreement and consider this item at the Committee of the Whole Meeting on November 27, 2023 and the subsequent Consent Agenda at the December 4, 2023 Regular Meeting. ATTACHMENTS Sewer District Map Brochure Draft Ordinance 18 https://tukwilawa.sharepoint.com/sites/publicworks/engineering/PW Drop Box/01 TIC Agenda/2023 Agenda Items/TIC 11-20-23/1. Franchise Agr with Valley View/TIC Info Memo (6Nov23)-Valley View Sewer District Franchise Agreement.docx 3000 City of Tukwila Sewer Service Areas N A 0 3000 Feet Date: August 14, 2001 Disclaimer: The location of features and boundaries are approximate and are Intended for reference only. 19 10/26/23, 8:49 AM Valley View Sewer District: Valley View Sewer District "WORKING TOWARD BETTER ENVIRONMENT" GU S 1.i&:rh Suite TOO Seal t (206)242.3236 i Email Cusl 11Pay yo Home About Us Customers. Forms Governance District Finances Connecting to Sewers Projects CantacI CITY OF TUKWILA CONSIDERING 6% FRANCHISE AGREEMENT The Board of Commissioners at Valley View Sewer District believes in keeping your sewer bill as affordable as possible. Your local sewer rate (pre-treatment) is one of the lowest in the region. The District is informing you that an additional expense may soon be added to your sewer bill. The Tukwila City Council has directed City Staff to explore new revenue sources for the City that do not require a vote by the citizens of Tukwila. A FRANCHISE AGREEMENT containing a 6% Charge may be added to your sewer bill. This may increase your sewer bill $9.60 per billing cycle. This amount will increase over time as your sewer bill increases. In addition, the City is reserving its right to impose a utility tax if they determine additional City revenues are needed. 2024 Rate Breakdown with Proposed Franchise Fee Monthly King County Treatment Charge $55.11, (Currently $52.11) Monthly Valley View Charge $18.70, (Currently $17.64) 0 Proposed Monthly City of Tukwila Franchise Fee $4.80 Valley View Sewer District Board of Commissioners This change would only affect those customers served in the City of Tukwila. If you have questions or concerns about the proposed Franchise Agreement or Utility Tax, please coma District office at 206-242-3236 or send us an WWII.. After Hours Sewer Related Emergencies The District is prepared to respond to sewer related emergencies 24 hours a day. If you are experiencing an after hours sewer related emergency, please call 206-501-8158 AFTER HOURS EMERGENCY CONTACT https:Iwww.valleyviewsewer.org 1/3 DRAFT AN ORDINANCE OF THE CITY OF TUKWILA, WASHINGTON GRANTING VALLEY VIEW SEWER DISTRICT A NON-EXCLUSIVE FRANCHISE TO CONSTRUCT, MAINTAIN, OPERATE, REPLACE AND REPAIR A SEWER SYSTEM WITHIN PUBLIC RIGHTS -OF - WAY OF THE CITY OF TUKWILA, AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE. WHEREAS, Valley View Sewer District, a Washington special purpose municipal corporation ("District"), owns sewer facilities ("Facilities") located in the City of Tukwila, a Washington non -charter municipal code city ("City"), and a portion of such Facilities are located within the City right-of-way as hereinafter defined; and WHEREAS, RCW 57.08.005(5) authorizes the District to conduct sewer services throughout the District and any city and town therein, and construct and lay facilities along and upon public highways, roads and streets within and without the District; and WHEREAS, RCW 35A.47.040 authorizes the City to grant non-exclusive franchises for the use of the public streets above or below the surface of the ground by publicly owned and operated sewer facilities; and WHEREAS, the City and the District have prepared this Franchise Agreement to provide for the operation of District Facilities within the City right-of-way. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Definitions. Where used in this franchise (the "Franchise") these terms have the following meanings: A. "Blanket Activities" means work that does not include cutting, removing, or disturbing the pavement surface which includes but is not limited to the following activities: simple service disconnects for customers, accessing existing vaults, maintaining hydrants/vaults, raising/adjusting valves, vegetation management, replacing above- ground meter, installing water sampling stations, flushing activities, and lining pipes. CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 1 of 26 21 B. "City" means the City of Tukwila, a Washington municipal corporation, and its respective successors and assigns. C. "District" means the Valley View Sewer District, a Washington municipal corporation, and its respective successors and assigns. D. "Facility" or "Facilities" means meters, pipes, mains, services, valves, vaults, risers, manholes, generators, electrical control panels, power meters, telephone connections, meter stations, pump stations, lift stations, lines, wastewater treatment plants, and facilities and all other necessary or convenient facilities and appurtenances thereto for the sole purpose of operating a wastewater utility system, whether the same be located over or underground. E. "Franchise Area" means every and all of the public roads, streets, avenues, alleys, highways and rights -of -way of the City as now or hereafter laid out, platted, dedicated or improved; and any and all public City roads, streets, avenues, alleys, highways, and other rights -of -way that may hereafter be laid out, platted, dedicated or improved in the District's service area, within the present corporate boundaries of the City (as depicted in Exhibit B, attached hereto, which is by this reference incorporated as if fully set forth herein), and as such corporate boundaries may be extended within District's service area by annexation or otherwise, but shall not include private roads, streets, avenues, alleys or private property. The Franchise Area shall not include or convey any right to the District to install facilities on, or to otherwise use, City owned or leased properties. F. "Ordinance" means this Ordinance No. , which sets forth the terms and conditions of this Franchise. G. "Party" or "Parties" means the City or the District individually, or collectively as addressed in this Franchise. H. "Revenue" means income received by the District from the sale of retail sewer services to direct retail customers whose properties receiving such service from the District's sewer system are located within the City. Revenue shall not include: late fees; shut-off and reconnect fees; delinquent service charge collection costs and expenses; surcharges; impact or mitigation fees; permit fees and costs; any type of connection charges, general facilities charges, or local facilities charges; local improvement district and utility local improvement district assessments and payments; grants; contributed assets (contributions in aid of construction); loans; income from legal settlements not related to retail sales to the District customers; income from telecommunication leases or licenses; income from real property or from real property sales; income from the sale of surplus equipment, tools or vehicles; interest income; penalties; hydraulic modeling fees; sewer system extension agreement fees and charges; income from street lights; labor, equipment and materials charges; or any other fees and charges. Section 2. Franchise. A. In addition to the authority granted by State law to the District to locate, operate and maintain its Facilities in public roads and streets, the City does hereby grant to the District the non-exclusive right, privilege, authority and franchise to construct, install, lay, CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn 22 Page 2 of 26 support, attach, maintain, repair, renew, replace, remove, enlarge, operate and use Facilities in, upon, over, under, along, through and across the Franchise Area for purposes of its sewer utility functions as defined in Title 57 RCW. B. Nothing contained in this ordinance is to be construed as granting permission to the District to go upon any other public place other than those types of public places specifically designated as the Franchise Area in this Ordinance. Permission to go upon any other property owned or controlled by the City must be sought on a case -by -case basis from the City and may require lease or rental payments as a condition of such use. C. At all times during the term of this Franchise, the District shall fully comply with all applicable federal, state and local laws and regulations and required permits, including, but not limited to, RCW 39.04.180 for construction trench safety systems, chapter 19.122 RCW for utility damage prevention, the State Environmental Policy Act, the State of Washington Pollution Control Law, and the Federal Clean Water Act. D. The terms, conditions, and provisions of Tukwila Municipal Code ("TMC") Title 11, as currently written, or hereafter modified, are incorporated herein by reference. In the event that a conflict exists between the terms of this Franchise and the terms of the TMC, the terms of this Franchise shall control. E. The terms of this Franchise shall not impair or interfere with the District's rights under any easements that cover areas within any existing or future City rights -of -way. The District's easement rights shall remain in effect unless formally relinquished by the District or condemned by the City. Section 3. Non-interference of Facilities. A. The District's Facilities shall be located, relocated and maintained within the Franchise Area so as not to unreasonably interfere with the free and safe passage of pedestrian, bicycle, and vehicular traffic and ingress or egress to or from the abutting property and in accordance with the laws of the State of Washington, and the ordinances, resolutions, rules and regulations of the City of Tukwila. Nothing herein shall preclude the District from effecting temporary road closures as reasonably necessary during construction or maintenance of its Facilities provided the District receives prior City approval through an appropriate permit, which shall not be unreasonably withheld, and, provided further, the District shall have the right to effect temporary road closures in the event of emergencies to maintain, repair and replace its Facilities without prior City approval but the District shall obtain City approval of such road closures as soon as reasonably possible. B. Whenever it is necessary for the District, in the exercise of its rights under this Franchise, to make any excavation in the Franchise Area, the District shall, upon completion of such excavation, restore the surface of the Franchise Area to City standards, as nearly as reasonably possible to its condition prior to any such excavation, installation, construction, relocation, maintenance or repair and, except as provided under Section 4, shall do so, at no expense to the City; PROVIDED, HOWEVER, that no such work shall be done prior to the obtaining of a permit therefor issued by the City, which permit shall set forth conditions pertaining to the work to be done and specifications for the restoration of the Franchise Area. CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 3 of 26 23 C. If the City determines that the District has failed to restore the right-of-way in accordance with the conditions set forth in this Franchise, the City shall provide the District with written notice, which shall include a description of actions the City believes necessary to restore the right-of-way. If the right-of-way is not restored in accordance with the City's notice within fifteen (15) days of that notice, or such longer period as may be specified in the notice, the City, or its authorized agent, may restore the right-of-way and the District shall, except as provided in Section 4, be responsible for all reasonable costs and expenses incurred by the City in restoring the right-of-way in accordance with this Section. The rights granted to the City under this Section shall be in addition to those otherwise provided by this Franchise. D. The District shall, except as provided in Section 4, at no expense to the City, expeditiously repair all existing Facilities that it owns, operates and maintains within the Franchise Area, including any damage caused directly or indirectly by its Facilities. The District shall also coordinate and manage the repair of service lines in the Franchise Area connecting its system to users. E. Survey monuments shall not be removed or destroyed without the District first obtaining the required Department of Natural Resources (DNR) permit in accordance with RCW 58.09.130 and WAC 332-120-030, and as such statute and regulation may be modified and amended. A Professional Land Surveyor (PLS) shall be responsible for perpetuating and documenting existing monuments in compliance with the Application Permit to Remove or Destroy a Survey Monument in accordance with WAC 332-120. Following approval by the Public Land Survey Office, copies of the approved permits shall be forwarded to the City. All survey monuments, which have been distributed or displaced by such work, shall be restored pursuant to all federal, state and local standards and specifications. The District agrees to promptly complete all restoration work and to promptly repair any damage caused by such work at its sole expense. Section 4. Relocation of Facilities. A. Whenever the City causes the grading or widening of the Franchise Area or undertakes construction of City -owned utilities, storm drainage lines, lighting, signalization, sidewalk improvements, pedestrian and bicycle amenities, or other public street improvements (collectively "Public Improvement Projects") and the Public Improvement Project requires relocation of the District's then -existing Facilities within such Franchise Area, the City shall: (1) Provide the District, at least one hundred eighty (180) days prior to the advertisement for bid of construction of such project, written notice that a project is expected to require the relocation of District Facilities, together with reasonably accurate and specific plans and specifications for such grading, widening, or construction and a proposed new location within the Franchise Area for the District's Facilities. This period of time shall be extended to three hundred sixty (360) days prior notice if the Public Improvement Project exceeds Five Hundred Thousand Dollars ($500,000); and (2) Coordinate and work diligently with the District to minimize conflicts between existing Facilities and the project improvements, and reduce Facility relocations, where possible using the following procedure: CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 4 of 26 24 (a) Pursuant to RCW 35.21.905, or as amended, the City will consult with the District in the predesign phase of any Public Improvement Project in order to coordinate the project's design with District's Facilities within such project's area. (b) The District shall participate in predesign meetings until such time as (i) both parties mutually determine that District's Facilities will not be affected by the Public Improvement Project, or (ii) until the City provides the District with written notice regarding the relocation as provided in subsection (d) below. (c) The District shall, during the predesign phase, promptly (within fifteen (15) business days) evaluate and provide comments to the City related to any alternatives to possible relocations. The City agrees to consider any alternatives proposed by the District, but the final decision accepting or rejecting any specific alternative shall be within the City's sole discretion. (d) The City will provide the District with its decision regarding the relocation of the District's Facilities as soon as reasonably possible, endeavoring to provide no less than ninety (90) days prior to the commencement of the construction of such Public Improvement Project; provided, however that in the event that the provisions of a state or federal grant require a different notification period or process than that outlined in Section 4.1, the City shall notify the District during the predesign meetings and the process mandated by the grant funding shall control. (e) After receipt of such notice, the District shall complete the relocation of its Facilities so as to accommodate such Public Improvement Project consistent with the timeline provided by the City, or as otherwise modified by the City, and at no charge or expense to the City. Such timeline may be extended by a mutual agreement. (f) The City may require the relocation of the Facilities at the District's expense in the event of an unforeseen emergency that creates an immediate threat to the public safety, health, or welfare. The District shall relocate its Facilities within the reasonable time period specified by the City. B. After receipt of such notice and such plans and specifications, District shall relocate its Facilities within the Franchise Area to accommodate street and city improvement projects; provided, however, the District may, after receipt of written notice requesting a relocation of its Facilities, submit to the City written alternatives to such relocations. Such written notice must be received by the City within ninety (90) days of receipt of the notice described in Section 4(A)(2) above. Within a reasonable time, the City shall evaluate such alternatives and advise the District in writing whether one or more of the alternatives is suitable to accommodate work that would otherwise necessitate relocation of the Facilities. If requested by the City, the District shall submit such additional information as is reasonably necessary to assist the City in making such evaluation. The City shall give each alternative full and fair consideration. If the City reasonably determines that there is no other feasible alternative, the City shall provide the District with further written notice ("Secondary Notice") to that effect, and the District shall then relocate its Facilities by its own forces, by separate public works contract or by participating in the City's public works project in accordance with Section 4(G). The City shall cooperate with the District to designate a substitute location for its Facilities within the Franchise Area. The City will establish a date by which Facilities will be relocated, CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 5 of 26 25 which date will be not less than one hundred eighty (180) days after receipt of the Secondary Notice by the District as to the Facility to be relocated. The District must finish relocation of each such Facility by the date so established. C. The cost of relocating such Facilities existing within the Franchise Area shall be paid as follows: (1) If the relocation occurs within ten (10) years after the District or a third party on the District's behalf constructed such Facility, then the City shall pay fifty percent (50%) of the cost of such relocation and the District shall pay the remaining fifty percent (50%). (2) If the relocation occurs more than ten (10) years after the District or a third party on the District's behalf constructed such Facility, then the relocation shall be at the District's sole cost. (3) For the purposes of this Section 3, the date of the Facility's acceptance by the District Board of Commissioners, or the date of final contract payment for the facility's installation (whichever occurs first), shall determine the age of the Facility. (4) Whenever any State or Federal Agency with legal authority within the Franchise Area requires the relocation of District Facilities, the relocation shall be at the District's sole cost. This provision does not limit the District's rights to seek reimbursement for the costs of such relocation from the State or Federal Agency requiring the relocation. (5) Subsection (1) of this Subsection 4(C) shall not apply to relocations of District Facilities required as part of a formal declaration of emergency as defined in RCW 39.04.280(3) by the City, which is ratified by Resolution of the City Council. In such cases, relocation, if necessary, shall be at the District's sole cost. D. Whenever the City is undertaking a road or City -owned utility project or improvement, the City will not use its authority to require the District to relocate sewer facilities for third party franchise utilities (private utilities) on City -initiated aerial -to - underground conversion projects. If conflicts between the aerial -to -underground joint - trench and the District Facilities cannot be resolved, and relocation of District Facilities is necessary, the District shall have the right as a pre -condition of such relocation to require payment to the District for any and all costs and expenses incurred by the District in the relocation of such District Facilities. On City -initiated projects requiring aerial -to -aerial relocation of third party franchise utilities (private utilities), the District shall relocate that portion of its Facilities which are in direct conflict with the new locations of the third party franchise utility facilities, such as utility poles, or participate in securing the necessary easements where no reasonable alternative location for the third party franchise utility facilities exist within the then existing right-of-way. E. For the purpose of this Section 4, a project or improvement is considered to be caused by the City (as described in Section 4(A) above) if the project is City -initiated and is part of the City's annually adopted Capital Improvement Project (CIP) Program, and can include projects or improvements where a third party has made an in lieu payment for a portion of the City's capital improvement project, provided, the City is responsible for the majority of the cost of the project or improvement, which, if applicable, includes CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn 26 Page 6 of 26 any grant funding received by the City from any federal, state or local agency. A project or improvement is not considered to be caused by the City if the project or improvement is constructed by the City on behalf of a third party, where the third party is responsible for the majority of the project or improvement cost and makes payment to the City in lieu of performing the project or improvement. F. Whenever any person or entity, other than the City, requires the relocation of District Facilities to accommodate the work of such person or entity within the Franchise Area (excluding State and Federal agencies with legal authority within the Franchise Area), the City agrees not to use its authority to require the District to relocate the existing Facilities. The District shall have the right as a pre -condition of such relocation to require such person or entity to: (1) Make payment to District at a time and upon terms acceptable to the District for any and all costs and expense incurred by the District in the relocation of District Facilities; and (2) Protect, defend, indemnify and hold the District harmless from any and all claims and demands made against it on account of injury or damage to the person or property of another arising out of or in conjunction with the relocation of District Facilities, to the extent such injury or damage is caused by the negligence or willful misconduct of the person or entity requesting the relocation of District Facilities or other negligence or willful misconduct of the agents, servants or employees of the person or entity requesting the relocation of District Facilities. G. If a City project requires the relocation of then existing Facilities within the Franchise Area, the District shall have the right by interlocal agreement with the City to include the relocation of any Facilities as required by the City as part of the City's public works project. Such interlocal agreement shall include and provide for, but not be limited to, the following terms and conditions: (1) The inclusion of the District's work as part of the City's project; (2) The District to provide plans and specifications of the District's work to the City in a timely manner for inclusion as a separate bid schedule in the City project, whether such District plans and specifications are prepared by the District at the District's expense, or the City prepares the plans and specifications for the District's work at the District's expense; (3) The City bidding the project, including the District's work by separate bid schedule, and the District's approval of the contractor's bid for the District's work in the separate bid schedule, or, alternatively, the District's rejection of the contractor's bid for the District work and the District's right to perform the District's work through a District contractor, provided that in so doing the City's project is not unreasonably delayed; (4) The City's contractor to install both the City work and the District work, the City's obligation to pay the City's contractor for both the City work and the District work, and the District's obligation to reimburse the City for the cost of the District work performed by the City contractor. (5) The District's obligation to reimburse the City for District project administration and inspection fees and costs based on a time and materials basis, CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 7 of 26 27 provided the City and the District may negotiate a lump sum payment on a per project basis, or a percentage of the total District project construction cost, and provided the District shall not be required to pay for any City -issued permits related to the City work and the District work. H. The Parties expressly agree that this Section 4 shall not survive the expiration, revocation or termination of this Franchise, unless modified by separate agreement. Section 5. Right -of -Way Management. A. Permit Requirements. Whenever the District excavates in any right-of-way for the purpose of installation, construction, operation, maintenance, repair or relocation of its Facilities, it shall apply to the City for a permit to do so in accordance with this Franchise and the ordinances and regulations of the City requiring permits to operate in City right-of-way. Except for emergencies or as otherwise provided for in this Franchise and applicable City Ordinance, no District excavation work shall occur within any City right-of-way without a permit. All work shall be done to the City's reasonable satisfaction. B. Blanket Permits. The District may obtain a Blanket Activities Permit for Blanket Activities, as defined in Section 1, performed in the City's rights -of -way. The permit will be charged at the fee as identified in the City's Fee Schedule and hourly inspection fees shall be paid monthly. Blanket Activities require submittal of typical traffic control measures consistent with the MUTCD. Permits for Blanket Activities shall be valid for no longer than twelve months. C. Restoration after Construction. The District shall, after any installation, construction, relocation, operation, maintenance or repair of Facilities within the Franchise Area, restore the right-of-way to City standards as nearly as reasonably possible to its condition prior to any such work. The District agrees to promptly complete all restoration work and to promptly repair any damage to the right-of-way caused by such work at its sole cost and expense. The District further agrees to repair or replace any defective restoration work performed by the District or on its behalf consistent with the City's Infrastructure Design and Construction Standards. If it is determined the District has failed to restore the right-of-way in accordance with this Franchise and other applicable City regulations or if the District's restoration work is subsequently determined to be defective, the City shall provide the District with written notice. Any notice issued by the City shall include a description of the actions the City believes necessary to restore the right-of-way or repair or replace the work. D. Bonding Requirement. The District, as a public agency, shall not be required to comply with the City's standard bonding requirement for working in the City's rights -of - way. E. Emergency Work, Permit Waiver. In the event of an emergency where any District Facilities located in the right-of-way are broken or damaged, or if the District's construction area for the District's Facilities is in a condition as to place health or safety of any person or property in imminent danger, the District shall immediately take any necessary emergency measures to repair, replace or remove its Facilities without first applying for and obtaining a permit as required by this Franchise; provided the District shall notify the City as soon as reasonably possible relative to such emergency activity CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn 28 Page 8 of 26 and shall immediately obtain a permit for such activity if required by this Franchise or City Ordinance. F. City Work Zones. The District shall not be required to obtain a City right-of- way permit to undertake utility work when the District has included its work as part of a City public works project in accordance with Section 4(G). G. City Invoices. The City shall invoice the District for all City fees and charges relating to the issuance of any City right-of-way permit to the District, including inspection fees and charges, on a monthly basis, and the City's final fees and charges within thirty (30) days of the completion of any District work in City right-of-way subject to a City permit, and the City's final acceptance of any District work. H. Contractors and Subcontractors. The District's contractors and subcontractors shall be licensed and bonded in accordance with State law and the City's ordinances, regulations, and requirements. Work by contractors and subcontractors is subject to the same restrictions, limitations, and conditions as if the work were performed by the District. The District shall be responsible for all work performed by its contractors and subcontractors and others performing work on its behalf as if the work were performed by the District and shall ensure that all such work is performed in compliance with this Franchise and applicable law. Section 6. Planning Coordination. A. The Parties agree to participate in the development of, and reasonable updates to, the other Party's planning documents as follows: (1) For the District's service area within the City limits, the District will participate in a cooperative effort with the City to develop City's Comprehensive Plan Utilities Element that meets the requirements described in RCW 36.70A.070(4). (2) The District will participate in a cooperative effort with the City to ensure that the Utilities Element of City's Comprehensive Plan is accurate as it relates to the District's operations and is updated to ensure continued relevance at reasonable intervals. (3) The District shall submit information related to the general location, proposed location, and capacity of all existing and proposed Facilities within the City as requested by the City within a reasonable time, not exceeding twenty (20) days from receipt of a written request for such information, provided that such information is in the District's possession, or can be reasonably developed from the information in the District's possession. (4) The City will provide information relevant to the District's operations within a reasonable period of written request to assist the District in the development or update of District's Comprehensive Sewer System Plan(s), provided that such information is in the City's possession, or can be reasonably developed from the information in the City's possession. CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 9 of 26 29 B. District and City shall each assign a representative whose responsibility shall be to coordinate planning for capital improvement plan projects including those that involve undergrounding. At a minimum, such coordination shall include: (1) For the purpose of planning, the District and the City shall provide each other with a copy of their respective current adopted Capital Improvement Plan annually and upon request by the other Party. (2) By February 1st of each year, District shall provide the City with a schedule of the District's planned capital improvements which may affect the rights -of - way for that year. (3) By February 1st of each year, City shall provide the District with a schedule of City's planned capital improvements which may affect the rights -of -way for that year including but not limited to street overlays and repairs, storm drainage improvements and construction, and all other rights -of -way activities that could affect District capital improvements and infrastructure. (4) The District shall meet with the City, and other franchisees and users of the right-of-way, as necessary, to schedule and coordinate construction activities. (5) All construction locations, activities, and schedules shall be coordinated to minimize public inconvenience, disruption or damages. (6) The City and the District agree to cooperate in the planning and implementation of emergency operations response procedures. (7) Without charge to either Party, both Parties agree to provide each other with as -built plans, maps and records in electronic format as available that show the location of their respective facilities within rights -of -way. Section 7. Indemnification. A. To the extent permitted by law, the District shall indemnify, defend and hold the City, its agents, officers, officials (elected and appointed) employees, volunteers and assigns harmless from and against any and all third party claims, demands, liability, loss, cost, damage or expense of any nature whatsoever, including all costs and attorney's fees, made against them on account of injury, sickness, death or damage to persons or property which is caused by or arises out of, in whole or in part, the willful, tortious or negligent acts, failures and/or omissions of District or its agents, officers, officials (elected and appointed) servants, employees, contractors, subcontractors or assigns in the construction, operation or maintenance of its Facilities or in exercising the rights granted District in this Franchise; provided, however, such indemnification shall not extend to injury or damage to the extent caused by the sole negligence or willful misconduct of the City, its agents, officers, officials (elected and appointed), employees, volunteers or assigns. Inspection or acceptance by the City of any work performed by the District at the time of completion of construction shall not be grounds for avoidance by the District of any of its indemnification obligations. B. The City shall indemnify, defend and hold the District, its agents, officers, officials (elected and appointed), employees, volunteers and assigns harmless from and CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn 30 Page 10 of 26 against any and all third party claims, demands, liability, loss, cost, damage or expense of any nature whatsoever, including all costs and attorney's fees, made against them on account of injury, sickness, death or damage to persons or property which is caused by or arises out of, in whole or in part, the willful, tortious or negligent acts, failures and/or omissions of City or its agents, officers, officials (elected and appointed), employees, contractors, subcontractors or assigns in the City's performance, administration and operation of this Franchise; provided, however, such indemnification shall not extend to injury or damage to the extent caused by the negligence or willful misconduct of the District, its agents, officers, officials (elected and appointed), employees, volunteers or assigns. C. In the event any claim or demand is presented to or filed with the District or the City arising out of or relating to the acts or omissions in whole or in part of the other Party, the indemnified Party shall promptly notify the other Party, and the notified Party shall have the right, at its election and at its sole cost and expense, to settle and compromise such claim or demand. D. However, should a court of competent jurisdiction determine that this Franchise is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of City and District, their officers, officials (elected and appointed), employees and agents, District's liability hereunder shall be only to the extent of District's negligence and the City's liability shall be only to the extent of the City's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Parties' waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. E. The District shall not introduce or use any known or classified hazardous substances (chemical or waste), in violation of any applicable law or regulation, nor shall District allow any of its agents, contractors, subcontractors or any person under its control to do the same. The District will be solely responsible for and will defend, indemnify, and hold the City, its officers, officials (elected and appointed), employees, agents, and volunteers harmless from and against any and all claims, costs, and liabilities including reasonable attorney fees and costs, arising out of or in connection with the cleanup or restoration of the Franchise Area to the extent caused by the District's use, storage, or disposal of known, or classified, hazardous substances, whether or not intentional, and the use, storage, or disposal of such substances by the District's agents, contractors, subcontractors, or other persons acting under the District's control, whether or not intentional. F. Notwithstanding any other provisions of this Section 7, the District assumes the risk of damage to its Facilities located in the rights -of -way and upon City -owned property from activities conducted by the City, its officers, officials (elected and appointed), agents, employees, volunteers, elected and appointed officials, and contractors, except to the extent any such damage or destruction is caused by or arises from any sole negligence, willful misconduct, or criminal actions on the part of the City, its officers, agents, employees, volunteers, officials (elected and appointed), or contractors. The District releases and waives any and all such claims against the City, its officers, agents, employees, volunteers, officials (elected and appointed), or contractors. CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 11 of 26 31 G. The provisions of this Section 7 shall survive the expiration, revocation, or termination of this Franchise. Section 8. Default. If the District fails to comply with any of the provisions of this Franchise, unless otherwise provided for herein, the City may serve upon the District a written order to so comply within thirty (30) days from the date such order is received by the District. If the District is not in compliance with this Franchise after expiration of the thirty (30) day period, the City may act to remedy the violation and may charge the costs and expenses of such action to District. The City may act without the thirty (30) day notice in case of an emergency and may charge the costs and expenses of such action to the District. The City may in addition, by ordinance adopted no sooner than five (5) days after notice of the City Council hearing (at which District will have an opportunity to be heard) on the impending ordinance, declare an immediate forfeiture of this Franchise, provided, however, if any material failure to comply with this Franchise by District cannot be corrected with due diligence within said thirty (30) day period, the District's obligation to comply and to proceed with due diligence being subject to unavoidable delays and events beyond its control, in which case the time within which the District may so comply shall be extended for such time as may be reasonably necessary and so long as the District commences promptly and diligently to effect such compliance, provided a good faith dispute does not exist concerning such compliance. All rights and remedies shall be in addition to and cumulative with any and all other rights and remedies available to either the City or District. Such rights and remedies shall not be exclusive, and the exercise of one or more rights or remedies shall not be deemed a waiver of the right to exercise at the same time or thereafter any other right or remedy. In addition to other remedies provided herein, if the District is not in compliance with requirements of this Franchise, and if a good faith dispute does not exist concerning such compliance, the City may place a moratorium on issuance of pending District right-of-way use permits until compliance is achieved. Section 9. Non-exclusive Franchise. This Franchise is not and shall not be deemed to be an exclusive Franchise. This Franchise shall not in any manner prohibit the City from granting other franchises over, upon, and along the Franchise Area which do not interfere with District's rights under this Franchise. This Franchise shall not prohibit or prevent the City from constructing, altering, maintaining, or using the Franchise Area or affect the jurisdiction of the City over the same or any part thereof. Section 10. Jurisdiction. This Franchise is intended to convey limited rights and interest only as to those roads and rights -of -way in which the City has an actual interest within the Franchise Area. It is not a warranty of title or of interest in City rights -of -way. Section 11. Franchise Term. CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn 32 Page 12 of 26 This Franchise shall have a term of fifteen (15) years from its Effective Date as defined in Section 37 herein, provided this Franchise shall be automatically extended for one additional five (5) year period unless either Party, at least one hundred eighty (180) days prior to the termination date of the Franchise provides written notice to the other Party of its intent to terminate the Franchise at the end of the then current Franchise term (collectively, the "Term"). Section 12. Administrative Fee. As compensation to the City for its costs of creating and administering this Franchise, the District shall pay to the City a one-time administrative fee ("Administrative Fee") of Two Thousand Five Hundred Dollars ($2,500.00). The Administrative Fee shall be paid by the District to the City within thirty (30) days of the Effective Date of the Franchise. Section 13. Non -assumption. In consideration of the District's payment of the Franchise Fee and Administrative Fee to the City as provided in Sections 12 and 14 herein, and the District's acceptance of the other terms and conditions of this Franchise, the City agrees not to exercise and to forbear its statutory authority pursuant to chapter 35.13A RCW or other statutes to attempt to assume jurisdiction over all or part of the District or any District responsibilities, property, facilities, equipment or utility customers located within or without the City's corporate limits during the term of this Franchise. The City's agreement and forbearance includes not facilitating or cooperating with any other city or town to attempt pursuant to RCW 35.13A.060 or as such statute may be amended or superseded to assume jurisdiction over the District or any District responsibilities, property, facilities, equipment or utility customers located within or without the City's corporate limits during the Term of this Franchise; provided, that this provision shall not be construed to prohibit or prevent the City from responding to requests for public records related to such attempts by other cities or towns . Section 14. Franchise Fee. A. In consideration of the rights granted the District under this Franchise, the District shall pay to the City a franchise fee ("Franchise Fee") beginning the first day of the first month occurring at least thirty (30) days after the Effective Date of this Franchise, subject to the provisions of Section 14(B) herein, as follows: Six percent (6%) of the District's Revenue derived from the provision of retail sewer service billed to its customers after the date established in Section 14(A) and thereafter until the termination of this Franchise, including any extension of the term of this Franchise. B. The Franchise Fee shall be paid to the City in bi-monthly installments due and payable within thirty (30) days following the end of the bi-monthly period. C. Should the District be prevented by judicial or legislative action from paying any or all of the Franchise Fee, the District shall be excused from paying that portion of the CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 13 of 26 33 Franchise Fee. Should a court of competent jurisdiction declare the Franchise Fee invalid, in whole or in part, then the District's obligation to pay the Franchise Fee to the City under this Section shall be terminated in accordance with and to the degree required to comply with such court action, provided, the Parties agree to amend this Franchise to require the District submit payment of a six percent (6%) utility tax. D. In consideration of the District's payment of a Franchise Fee and Administrative Fee to the City as provided herein, and the District's acceptance of the other terms and conditions of this Franchise, the City agrees not to exercise, and to forbear, any legal authority it may have to impose compensation or a rental fee (collectively, "Rental Fee") upon the District for the District's use of the Franchise Area as provided for in this Franchise. E. The District shall have the right to recover the Franchise Fee from the District's ratepayers residing within the City and may identify the Franchise Fee as a separate billing item on utility customer billings. F. The District agrees while this Franchise is in effect that it will not pursue or support any legal challenge to the Franchise Fee set forth herein. G. If the District fails to pay any fee required under this Franchise within ninety (90) days after the due date thereof, there shall be added to such fee a penalty of 1.5 percent (1.5%) of the amount of such fee. Section 15. Compliance with Codes and Regulations. A. The rights, privileges and authority herein granted are subject to and governed by this ordinance and all other applicable City ordinances and codes, including the City's Road Standards, as they now exist or may hereafter be amended, provided the City shall not unreasonably affect or modify any portion of this Franchise without the District's written approval. Nothing in this ordinance limits the City's lawful power to exercise its police power to protect the safety and welfare of the general public or deprive the City of any powers, rights, or privileges it now has or may later acquire in the future to regulate the use of and to control the City rights -of -way covered by this Franchise. Any location, relocation, erection or excavation by District shall be performed by District in accordance with applicable federal, state and City rules and regulations, including the City public works policies and pre -approved plans, and any required permits, licenses or regulatory fees, and applicable safety standards then in effect or any Memorandum of Understanding with District. B. If any territory served by District is annexed to the City after the Effective Date of this Franchise, this Franchise shall be deemed to be the new agreement required to be granted to a franchisee in annexed territory by RCW 35A.14.900 for whatever period of time is then required under that statute or the remaining time left under this Franchise for the Franchise Area, whichever is longer. Such territory shall then be governed by the terms and conditions contained herein upon the effective date of such annexation. The first Franchise Fee for any annexed area shall be calculated pro rata from the effective date of the annexation to the end of the next bi-monthly billing period and paid to the City at the same time as the fee for the Franchise Area is paid for that bi-monthly billing period. CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn 34 Page 14 of 26 C. The District shall, at all times, employ professional care and shall install and maintain and use industry -standard methods for preventing failures and accidents that are likely to cause damage, injuries, or nuisances to the public. All structures and all Facilities, equipment, and connections in, over, under, and upon the rights of way, wherever situated or located, shall at all times be kept and maintained in a safe condition. The District shall comply with all federal, State, and City safety requirements, rules, regulations, laws, and practices, and employ all necessary devices as required by applicable law during the construction, operation, maintenance, upgrade, repair, or removal of its Facilities. Upon reasonable notice to the District, the City reserves the general right to inspect the Facilities covered by this Franchise to evaluate if they are constructed and maintained in a safe condition. D. If an unsafe condition or a violation of Section 15(C) is found to exist, and becomes known to the City, the City agrees to give the District timely written notice of such condition and afford the District a reasonable opportunity to repair the same. If the District fails to start to make the necessary repairs and alterations within the time frame specified in such notice (and pursue such cure to completion), then the City may make such repairs or contract for them to be made. All costs, including administrative costs, incurred by the City in repairing any unsafe conditions shall be borne by the District and reimbursed to the City. E. The District shall be solely and completely responsible to perform all work related to this Franchise in compliance with all applicable federal, state, county and city statutes, rules, regulations, ordinances, orders and codes as presently constituted or as may be subsequently amended. The District's attention is directed to the requirements of the Washington Industrial Safety and Health Act, Chapter 49.17 RCW. The District shall be solely and completely responsible for safety and safety conditions on its job sites and for its work within the Franchise Area, including the safety of all persons and property during performance of any works therein. The services of the City or City's consultant personnel in conducting construction review of the District's work relating to the Franchise is not intended to include review of the adequacy of the District's work methods, equipment, scaffolding, or trenching, or safety measures in, on or near such Franchise Area or job site. The District shall provide reasonable and appropriate access for the City and its inspectors to adequately inspect the work and its conformance with applicable statutes, ordinances, rules, regulations, and the Franchise. F. Additional safety standards required include the following: (1) All installations of Facilities shall be installed in accordance with industry - standard engineering practices. (2) Any opening or obstruction in the rights -of -way or other public places made by the District in the course of its operations shall be protected by the District at all times by the placement of adequate barriers, fences, or boarding, the bounds of which, during periods of dusk and darkness, shall be clearly marked and visible. G. On notice from the City that any work is being performed contrary to the provisions of this Franchise, or in an unsafe or dangerous manner as determined by the City, or in violation of the terms of any applicable permit, laws, regulations, ordinances, CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 15 of 26 35 or standards, the work may immediately be stopped by the City. The stop work order shall: District; (1) Be in writing; (2) Be given to the person doing the work or posted on the work site; (3) Be sent to the District by overnight delivery or personally delivered to the (4) Indicate the nature of the alleged violation or unsafe condition; and (5) Establish conditions under which work may be resumed. Section 16. Location of Facilities and Equipment. With the exception of components that are traditionally installed above ground such as fire hydrants, blow offs, vault lids, risers, pump stations, generators, electrical control panels, power meters, telephone connections, automated reading equipment and appurtenances, and utility markers, all Facilities and equipment to be installed within the Franchise Area shall be installed underground; provided, however, that such Facilities may be installed above ground if so authorized by the City, which authorization shall not be unreasonably withheld, conditioned or delayed, consistent with the provisions of the City's land use and zoning code and applicable development pre -approved plans. Section 17. Record of Installations and Service. A. With respect to excavations by the District and the City within the Franchise Area, District and the City shall each comply with their respective obligations pursuant to chapter 19.122 RCW, and as such statute may be modified and amended, and any other applicable state law. Further, upon request from a third party or the City's contractor, the District shall locate its Facilities consistent with the requirements of chapter 19.122 RCW. B. Upon written request of the City, the District shall provide the City with the most recent update available of any plan of potential improvements to its Facilities within the Franchise Area; provided, however, any such plan so submitted shall only be for informational purposes within the Franchise Area, nor shall such plan be construed as a proposal to undertake any specific improvements within the Franchise Area. C. Upon written request of District, the City shall provide District with the most recent update available of any plan of potential improvements to its Facilities located within the Franchise Area; provided, however, any such plan so submitted shall only be for informational purposes within the Franchise Area, nor shall such plan be construed as a proposal to undertake any specific improvements within the Franchise Area. D. As -built drawings of the location of any Facilities placed by the District in the Franchise Area, shall be made available to the City within twenty (20) working days of request and within forty (40) working days following the completion and final acceptance of any construction projects. CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn 36 Page 16 of 26 Section 18. Shared Use of Excavations. A. The District and the City shall exercise best efforts to coordinate construction work either may undertake within the Franchise Area so as to promote the orderly and expeditious performance and completion of such work as a whole. Such efforts shall include, at a minimum, reasonable and diligent efforts to keep the other Party and other utilities within the Franchise Area informed of its intent to undertake such construction work. The District and the City shall further exercise best efforts to minimize any delay or hindrance to any construction work undertaken by themselves or other utilities within the Franchise Area. B. If at any time, or from time to time, either the District, the City, or another franchisee, shall cause excavations to be made within the Franchise Area, the Party causing such excavation to be made shall afford the others, upon receipt of a written request to do so, an opportunity to use such excavation, provided that: (1) No statutes, laws, regulations, ordinances or District safety policies prohibit or restrict the proximity of other utilities or facilities to District's Facilities installed or to be installed within the area to be excavated; (2) Such joint use shall not unreasonably delay the work of the Party causing the excavation to be made; (3) Such joint use shall be arranged and accomplished on terms and conditions satisfactory to both Parties. The Parties shall each cooperate with other utilities in the Franchise Area to minimize hindrance or delay in construction. C. The City reserves the right to not allow open trenching within any City street within five (5) years following a street overlay or improvement project; however, the District may open a trench provided it grinds and overlays the excavation area in accordance with the City written and adopted street overlay policy. In addition to the requirements of Section 6(B)(3), the City shall provide the District with written notice of not less than one hundred eighty (180) days prior to the commencement of any street overlay or improvement project. Section 19. Insurance. The District shall procure and maintain for the duration of the Franchise and as long as District has Facilities in the rights -of -way, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the Franchise and use of the rights -of -way. A. No Limitation. The District's maintenance of insurance as required by the Franchise shall not be construed to limit the liability of the District to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. B. Minimum Scope of Insurance. The District shall obtain insurance of the types and coverage described below: (1) Commercial General Liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 17 of 26 37 gap liability, independent contractors, products -completed operations, personal injury and advertising injury, and liability assumed under an insured contract. There shall be no exclusion for liability arising from explosion, collapse or underground property damage. The City shall be named as an additional insured under the District's Commercial General Liability insurance policy with respect this Franchise using ISO endorsement CG 20 12 05 09 or CG 20 26 07 04, or substitute endorsement providing at least as broad coverage. (2) Automobile Liability insurance covering all owned, non -owned, hired and leased vehicles. Coverage shall be at least as broad as Insurance Services Office (ISO) form CA 00 01. (3) Contractors Pollution Liability insurance shall be in effect throughout the entire Franchise covering losses caused by pollution conditions that arise from the operations of the District. Contractors Pollution Liability shall cover bodily injury, property damage, cleanup costs and defense, including costs and expenses incurred in the investigation, defense, or settlement of claims. (4) Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. (5) Excess or Umbrella Liability insurance shall be excess over and at least as broad in coverage as the District's Commercial General Liability and Automobile Liability insurance. The City shall be named as an additional insured on the District's Excess or Umbrella Liability insurance policy. C. Minimum Amounts of Insurance. The District shall maintain the following insurance limits: (1) Commercial General Liability insurance shall be written with limits no less than $5,000,000 each occurrence, $5,000,000 general aggregate. (2) Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $5,000,000 per accident. (3) Contractors Pollution Liability insurance shall be written in an amount of at least $1,000,000 per loss, with an annual aggregate of at least $1,000,000. (4) Excess or Umbrella Liability insurance shall be written with limits of not less than $5,000,000 per occurrence and annual aggregate. The Excess or Umbrella Liability requirement and limits may be satisfied instead through District's Commercial General Liability and Automobile Liability insurance, or any combination thereof that achieves the overall required limits. D. Other Insurance Provisions. The District's Commercial General Liability, Automobile Liability, Excess or Umbrella Liability, Contractors Pollution Liability insurance policy or policies are to contain, or be endorsed to contain, that they shall be primary insurance as respect the City. Any insurance, self-insurance, or self -insured pool coverage maintained by the City shall be excess of the District's insurance and shall not contribute with it. E. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII or a recognized risk management pool that complies with the standards adopted by the Washington State Risk Manager. CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn 38 Page 18 of 26 F. Verification of Coverage. The District shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement if available, evidencing the insurance requirements of the Franchise. Upon request by the City, the District shall furnish certified copies of all required insurance policies, including endorsements, required in this Franchise and evidence of all subcontractors' coverage. G. Contractors. The District shall cause each and every contractor to provide insurance coverage that complies with all applicable requirements of the District -provided insurance as set forth herein, except the District shall have sole responsibility for determining the limits of coverage required to be obtained by contractors. The District shall ensure that the City is an additional insured on each and every contractor's Commercial General liability insurance policy using an endorsement as least as broad as ISO CG 2026. H. Notice of Cancellation. The District shall provide the City with written notice of any policy cancellation within two business days of their receipt of such notice. I. Failure to Maintain Insurance. Failure on the part of the District to maintain the insurance as required shall constitute a material breach of Franchise, upon which the City may, after giving five business days' notice to the District to correct the breach, terminate the Franchise or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand. J. City Full Availability of District Limits. If the District maintains higher insurance limits than the minimums shown above, the City shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the District, irrespective of whether such limits maintained by the District are greater than those required by this Franchise or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by the District. K. District — Self -Insurance. The District may fulfill the insurance obligations contained herein by maintaining membership in a joint self-insurance program authorized by chapter 48.62 RCW. In this regard, the City understands that as a member of such a program the District is not able to name the City as an "additional insured" under the liability coverage provided by the joint self-insurance program. If the District is self -insured or becomes self - insured during the term of the Franchise, the District or its affiliated parent entity shall comply with the following: (i) provide the City, upon request, a copy of the District's or its parent company's most recent audited financial statements, if such financial statements are not otherwise publicly available; (ii) the District or its parent company is responsible for all payments within the self -insured retention; and (iii) the District assumes all defense and indemnity obligations as outlined in Section 7. Section 20. Abandonment and/or removal of District Facilities. The Parties agree that the standard practice will be to abandon underground District Facilities in -place whenever practical, subject to the following conditions: A. The District shall continue to own and be responsible for any such Facilities abandoned within the Franchise Area. CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 19 of 26 39 B. The City shall have the right to require the District to remove any Facilities abandoned within the Franchise Area if the City reasonably determines the removal of the abandoned Facility is required to facilitate the construction or installation of a City project within the Franchise Area and the City determines there is no other feasible alternative to the removal of the Facility. The City will make reasonable efforts to avoid conflicts with abandoned Facilities whenever possible, however, whenever a conflict cannot be resolved except by removal from the right-of-way of previously abandoned District Facilities, then the District shall, at the District's expense, remove such abandoned Facilities by its own forces, by contract or by participating in the City's public works project. When necessary, removal of abandoned Facilities shall be limited to the area of direct conflict. In removing such material, the District shall conform to all local, state, and federal regulations applicable to asbestos abatement, when applicable. C. If the District becomes aware that removal of any abandoned Facilities within the Franchise Are is required to eliminate or prevent an emergency or hazardous condition that endangers the property, life, health or safety of any person or entity, the District shall promptly, at no cost to the City, remove such decommissioned Facilities. D. Within one hundred and eighty days (180) of the District's permanent cessation of use of its Facilities as determined by the District, or any portion thereof, the District shall provide the City with record drawings showing the location of the Facilities to be abandoned. E. District Facilities that are abandoned in -place shall be abandoned pursuant to City standards, to the satisfaction of the City Public Works Director or designee. F. The Parties expressly agree that this Section shall survive the expiration, revocation or termination of this Franchise, unless modified by separate agreement. Section 21. Vacation of Franchise Area. If the City processes an application and/or determines to vacate any right-of-way which is part of the Franchise Area, the City may, after giving thirty (30) days written notice ("Vacation Notice") to the District, terminate this Franchise with respect to any City rights -of - way so vacated. However, should the District notify the City that an easement is required for existing Facilities within the proposed vacation area, the City shall require the applicant for a vacation to prepare and provide to the District the necessary easement documentation, at no cost to the District. The City shall withhold approval of such vacation until the District has notified the City that the necessary easement documentation has been secured, or provisions otherwise made acceptable to the District to maintain the viability and use of existing Facilities, provided that the District provides such notice to the City within one hundred eighty (180) days following the City's Vacation Notice to the District. Section 22. Assignment. All of the provisions, conditions, and requirements herein contained shall be binding upon the District, and no right, privilege, license or authorization granted to the District hereunder may be assigned or otherwise transferred without the prior written authorization and approval of the City, which the City may not unreasonably withhold, condition or delay, provided that a merger or consolidation of District with or into another Title 57 water -sewer CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn 40 Page 20 of 26 district shall not be considered an assignment for the purposes of this provision and shall not be subject to the City's approval. Section 23. Reservation of Rights. The City reserves the right, upon thirty (30) days written notice to the District, to amend or modify the provisions or conditions of this Franchise to conform to any state, county, or federal statute, rule, regulation, or ordinance adopted pursuant to the City's legitimate police power to protect the safety and welfare of the general public; provided that the City shall not unreasonably affect or modify any portion of this Franchise without the District's written approval. Unless otherwise mandated by state or federal law, if any term or condition of this Franchise and any term or condition of any City code, ordinance, resolution, or regulation are in conflict, the terms of this Franchise shall control. Section 24. Notice. Unless applicable law requires a different method of giving notice, any and all notices, demands or other communications required or desired to be given hereunder by any Party (collectively, "notices") shall be in writing and shall be validly given or made to another Party if delivered either personally or by Federal Express or other overnight delivery service of recognized standing, or if deposited in the United States Mail, certified, registered, or express mail with postage prepaid, or if sent by e-mail with electronic confirmation. If such notice is personally delivered, it shall be conclusively deemed given at the time of such delivery. If such notice is delivered by Federal Express or other overnight delivery service of recognized standing, it shall be deemed given one (1) business day after the deposit thereof with such delivery service. If such notice is mailed as provided herein, such shall be deemed given three (3) business days after the deposit thereof in the United States Mail. If such notice is sent by email, it shall be deemed given at the time of the sender's receipt of electronic confirmation. Each such notice shall be deemed given only if properly addressed to the Party to whom such notice is to be given as follows: To City: To District: City Clerk City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 Any Party may change its contact information and address for the purpose of receiving notices as herein provided by a written notice given in the manner required by this Section to the other Party. CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 21 of 26 41 Section 25. Severability. If any term, provision, condition or portion of this Franchise shall be held to be invalid by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining portions of this Franchise, which shall continue in full force and effect. Section 26. Non -Waiver. The failure of either Party to enforce any breach or violation by the other Party or any provision of this Franchise shall not be deemed to be a waiver or a continuing waiver by the non -breaching Party of any subsequent breach or violation of the same or any other provision of this Franchise. Section 27. Alternate Dispute Resolution. If the Parties are unable to resolve disputes arising from the terms of this Franchise, prior to resorting to a court of competent jurisdiction, the Parties may submit the dispute to mediation or other non -binding alternate dispute resolution process agreed to by the Parties. Unless otherwise agreed upon between the Parties or determined herein, the cost of that process shall be shared equally by the Parties. Section 28. Attorney fees. All fees and expenses for mediation or arbitration shall be borne by the parties equally. However, each party shall bear the expense of its own counsel, experts, witnesses, and preparation and presentation of evidence. In any claim or lawsuit for damages arising from the parties' performance of this Franchise, each party shall pay all its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph shall be construed to limit either Party's right to indemnification under Section 7 of this Franchise. Section 29. Governing Law/Venue. This Franchise shall be governed by the laws of the State of Washington. Any suit to enforce or relating to this Franchise shall only be filed in King County Superior Court, King County, Washington. Section 30. Entire Agreement. This Franchise constitutes the entire understanding and agreement between the Parties as to the subject matter herein and no other agreements or understandings, written or otherwise, shall be binding upon the Parties upon execution and acceptance hereof. CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn 42 Page 22 of 26 Section 31. Amendment. This Franchise may be amended only by written instrument, signed by both Parties, which specifically states that it is an amendment to this Franchise, and is approved and executed in accordance with the laws of the State of Washington. Without limiting the generality of the foregoing, this Franchise (including, without limitation, Section 7 "Indemnification" above) shall govern and supersede and shall not be changed, modified, deleted, added to, supplemented or otherwise amended by any permit, approval, license, agreement or other document required by or obtained from the City in conjunction with the exercise (or failure to exercise) by the District of any and all rights, benefits, privileges, obligations, or duties in and under this Franchise, unless such permit, approval, license, agreement or document specifically: A. References this Franchise; and B. States that it supersedes this Franchise to the extent it contains terms and conditions which change, modify, delete, add to, supplement or otherwise amend the terms and conditions of this Franchise. In the event of any conflict or inconsistency between the provisions of this Franchise and the provisions of any such permit, approval, license, agreement or other document that does not comply with Subsections (A) and (B) referenced above, the provisions of this Franchise shall control. Section 32. Directions to City Clerk. The City Clerk is hereby authorized and directed to forward certified copies of this ordinance to the District as set forth in this ordinance. The District shall have thirty (30) days from the receipt of the certified copy of this ordinance to accept in writing the terms of the Franchise granted to the District by this ordinance and file with the City Clerk the Statement of Acceptance, attached hereto as Exhibit A and incorporated by reference. Section 33. No Third -Party Beneficiaries. There are no third -party beneficiaries of this Franchise. Section 34. Survival. All of the provisions, conditions, and requirements of Section 7, Section 15, Section 18, Section 20, and Section 27 of this Franchise shall, in addition to any and all other obligation and liabilities the District may have to the City at common law, by statute, or by contract, survive this Franchise, and any renewals or extensions, to the extent provided for in those sections. Section 35. District Acceptance of Franchise. The District shall have no rights under this Franchise nor shall the District be bound by the terms and conditions of this Franchise unless the District shall, within thirty (30) CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 23 of 26 43 days after the effective date of the ordinance, file with the City its written acceptance of this Franchise. Section 36. Effective Date of Ordinance. This ordinance shall take effect five (5) days after passage and publication of an approved summary thereof consisting of the title. Section 37. Effective Date of Franchise. The terms and conditions of this ordinance shall not be binding on the City and the District unless the District Board of Commissioners within thirty (30) days of the effective date of this ordinance adopts a resolution accepting this Franchise, and the date of the adoption of such resolution by the District Board of Commissioners shall be the effective date ("Effective Date") of the Franchise. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2023. 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: Exhibit A, Acceptance of Franchise form Exhibit B, Depiction of City Corporate Boundaries CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn 44 Page 24 of 26 EXHIBIT A ACCEPTANCE OF FRANCHISE The undersigned authorized representative of Valley View Sewer District hereby declares on behalf of Valley View Sewer District the acceptance of the nonexclusive franchise to Valley View Sewer District approved by the Tukwila City Council on , 2023, by the adoption of Tukwila City Ordinance No. DATED this day of , 2023. Valley View Sewer District By: Its: CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 25 of 26 45 46 EXHIBIT B DEPICTION OF CITY CORPORATE BOUNDARIES 1M1 • 5 Ifid i• d 10}907 r..1 • 'I f'. -- I c� 1 '11 'I li 1• /+ ''1 ',k ".} 9 }rwa'M ' C t 8 HYl filJJ .r.u.15: Fr'rl}11,... i y of Seattle I_. c II p�n4� $t . -- S.B,hSi S I w III. • } i. I I k, . r I '�Lll. . 1..�.. l�l .. � -. IC i t .- {I • -lk 1 � vOf M King ! IZ 1 \ /: ; m 1 --II j 1' le, S I SYI 1111 IL $7' - i• I t I f 1 i _1 I I r I I ,l • EW11BTHST —I . \ _ T —1„ $li 1T.7111 5T ... F 'Il I . I I LI' I \ .< County I . �--- x 'f -` City I,:.. 1 1 f l- � .. -. o aurien Th'�� 1 } I f _ ILtr' +t I. i ' g 1 $iametl,III - 1 •1--j - li Li Palley d Sewer . w lk View�� la i5triat C i t • idlf + 1 y ¶ Office ini pain }Q f a - iiitaIll mm= f 'f .4•,...I , - _ _ Sea-Tac Ir r I .I - k 3 I I •L t` I h I Il. ' International V.171 V. Airpi rti' �T 1 �J -. S1i6Tw Sr'ST-' •• 3 I , fi a Norman) y 'S P a r k'c I J 1 ti, .0 ) r-. IF- 1• Port ofSealtle• .1—' ul L. 1 rl r� cttjf f J II $ I kl T i 37PRTH 8T Bea Ta G 'u f CC:\Legislative Development\Franchise agmt—Valley View Sewer District 11-9-23 S. Kim Andy Youn Page 26 of 26 47 48 COUNCIL AGENDA SYNOPSIS r,titialc Meeting Date Prepared by Mayors review Council review 11/27/23 AJS 12/4/23 AJS ITEM INFORMATION ITEM No. 4.C. STAFF SPONSOR: ADAM SCHIERENBECK ORIGINAL AGENDA DATE: 11/ 27/ 23 AGENDA ITEM TITLE Amendments to TMC 3.26 & 3.27 (Business & Occupation Tax) CATEGORY ® Discussion Mtg Date 11/27/23 ❑ Motion bltg Date ❑ Resolution Mtg Date ® Ordinance Mtg Date 12/4/23 ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ PcSR ❑ Police ❑ PIUI SPONSOR'S SUMMARY In 2022, the City Council passed Ordinance 2689 establishing a B&O tax on business activities within the City. It is recommended that the Council adopt additional deductions, exemption, and administrative provisions that are common among neighboring cities. It is also recommended to clairfy the appeal procedures and establish a nonreporting status for businesses beneath the taxable threshold. Finally, there is a mandatory definition change related to changes to the model ordinance at the state level. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: 11 / 13 / 23 ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: KRULLER RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/23 12/4/23 MTG. DATE ATTACHMENTS 11/27/23 Informational Memorandum dated 10/24/23 Draft Ordinance Attachment to Ordinance Minutes from the 11/13 Finance & Governance Committee meeting Informational Memorandum dated 11/16/23 (added for 11/27 C.O.W. Meeting) 12/4/23 49 50 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance Committee FROM: Vicky Carlsen, Finance Director BY: Adam Schierenbeck, Senior Fiscal Coordinator CC: Mayor Ekberg DATE: October 24, 2023 SUBJECT: B&O Tax TMC Changes ISSUE Staff are proposing code changes to administer the business and occupation (B&O) tax more effectively, and to add exemptions and deductions based on local goals and policies. BACKGROUND In 2022, the City Council passed Ordinance 2689 establishing a B&O tax on business activities within the City. RCW 35.102.040 requires the City to use the mandatory provisions of the model ordinances developed by Washington cities when imposing a B&O tax, including adopting administrative provisions related to the imposition and collection of the tax, but it also allows for flexibility to customize the B&O tax provisions based on local goals and policies. At the time of adopting the tax, while the mandatory provisions of the model ordinance were adopted, the optional administrative provisions in the model ordinance were not. Additionally, the City did not adopt additional exemptions, deductions, and appeal provisions that are common to neighboring cities and to the State of Washington. And while the City adopted a minimum annual gross receipts threshold of $750,000, the ordinance nonetheless requires every person engaging in business in the City to file a return, creating a large workload for zero tax filings. Finally, at the time of passing Ordinance 2689, it was communicated to City Council that the B&O tax applies only to businesses with a physical location in the City. However, the model ordinance requires that tax be asserted on any business with a physical presence in the City, which is not limited to only having a physical address. DISCUSSION Staff are proposing the following code changes to administer the B&O tax more effectively and to align the City's deductions and exemptions with other Washington cities. In addition, a change in state law in 2023 has resulted in a mandatory change to the model ordinance. Definition Change — Printing and Publishing Newspapers In 2023, the State of Washington adopted additional definitions that apply to Washington cities' allocation and apportionment of income for newspaper printers or publishers. This change expands the definition to include publishers of digital newspaper content. This has resulted in a mandatory change to the model ordinance, and thereby an amendment to TMC 3.26.078. Additional Exemptions The following additional exemptions are recommended, as they are common to neighboring cities that impose a local B&O tax and are exempt from the State of Washington's B&O tax: • Adult family homes. 51 INFORMATIONAL MEMO Page 2 52 • Health maintenance organization, health care service contractor, certified health plan. • International banking facilities. • Real estate brokers and associated brokers, agents, or salesmen. ➢ This exemption applies only if the brokerage office has paid B&O tax on the gross commissions earned by that office, in which case associated brokers in the same office do not need to also pay B&O tax on their individual commissions. • Ride sharing. • Credit unions. • Sales of agricultural products by farmers. • Certain corporations furnishing aid and relief to mitigate or prevent national calamities. • Certain fraternal and beneficiary organizations. • Operation of sheltered workshops. • Credit and debt services provided by nonprofit organizations. • Nonprofit organizations that are guarantee agencies, issue debt, or provide guarantees for student loans. Additional Deductions The following additional deductions are recommended, as they are common to neighboring cities that impose a local B&O tax and are deductible from the State of Washington's B&O tax: • Compensation from public entities for health or social welfare services. • Membership fees and certain services by nonprofit youth organization. • Initiation fees, dues, and certain charges received by nonprofit organizations. • Artistic and cultural organizations. • Interest on obligations of the state, political subdivisions, and municipal corporations. • Interest on loans to farmers and ranchers, producers, or harvesters of aquatic products, or their cooperatives. • Repair, maintenance, or replacement of residential structures and commonly held property by eligible organizations. • Certain advertising revenue by radio and television broadcasters. Nonreporting Status While the TMC requires every person to file a return and report their gross income and deductions, payment of the B&O tax is not due unless the taxable amount in the City exceeds $750,000 per calendar year. Thus, most businesses responsible for filing returns will not owe tax, but City staff will need to assist these businesses by providing tax reporting instructions, https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Finance/B&O Tax Memorandum 10-24-23.docx INFORMATIONAL MEMO Page 3 sending delinquent notices if a return is not filed, and processing returns received. Furthermore, if there is no tax due then penalties and interest do not apply, irrespective of whether a return is filed timely, and therefore obtaining voluntary compliance can be administratively burdensome while yielding no economic benefit to the City. A nonreporting option is recommended, which means the business is approved to conduct business in the City without needing to file B&O tax returns, at the City's discretion. The business may, however, be asked to certify their eligibility for nonreporting status. A business assigned to nonreporting may still be audited, and back taxes and penalties may be imposed if it is found that a prior tax liability was not paid. Administrative Appeal Procedure Within the model B&O tax ordinance, cities have flexibility to adopt their own appeal procedure. The City adopted a similar procedure to that already in place for its other city -imposed taxes, such as utility tax. However, some key elements of the appeal provision are not in alignment with other cities. Specifically, taxpayers are typically granted 30 days to file an appeal or a request for correction, and they are generally given a timeline by which they can expect a determination after their conference with the Finance Director (i.e. 60 days). Furthermore, cities' appeal provisions typically specify that an appeal cannot be filed by a taxpayer that has failed or refused to provide records or information requested by the City. And penalties and interest typically continue to accrue during an appeal proceeding or request for correction, except to the extent it is later determined that a tax assessment was too high. This prevents the appeal process from being used to merely extend the assessment due date. The recommended changes bring the City's appeal process closer in alignment with other cities and more clearly explain the process and requirements for taxpayers. Additional Administrative Provisions The Washington model ordinance provides several optional administrative provisions that are recommended to administer the B&O tax more effectively. These administrative provisions have been adopted by all neighboring cities that impose a B&O tax and include: • Grant taxpayers the right of judicial review if they disagree with the appeal decision of the hearing examiner. The City also is granted the same right of judicial review. • Grant the Finance Director the authority to adopt, publish, and enforce tax rules and regulations, which helps to ensure transparency and reduce tax reporting errors. • Grant the Finance Director the authority to enter into agreements with other Washington cities that impose a B&O tax. This helps to ensure that taxpayers are not taxed twice on the same amount in multiple cities and allows for joint audits to ensure that tax is being applied consistently between cities. • Require tax notices to be sent by ordinary mail using the address provided by the business on its business license. This provision specifies that failure of the taxpayer to receive a notice does not relieve the taxpayer of any amounts due to the City. • Specify that the B&O tax is in addition to other city -imposed taxes and license fees. • Maintain confidentiality of tax information. This ensures that tax information, such as tax returns, correspondence, and records obtained in an audit is not subject to public disclosure. https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Finance/B&O Tax Memorandum 10-24-23.docx 53 INFORMATIONAL MEMO Page 4 The City is still permitted to share basic information, such as a business' name, address, and open/closed status, and to publish statistics. • Specify that it is unlawful to fail to comply with the requirements of TMC Chapters 3.26 and 3.27, and a violation constitutes a gross misdemeanor. This provision is intended to prevent tax evasion, misrepresentation, and continuing to operate with a revoked business license. • Specify that the Director has authority to revoke a business license for failure to comply with TMC Chapters 3.26 and 3.27, according to the suspension and revocation procedures set forth in TMC 5.04.110 and 5.04.112. • Grant the Finance Director authority to enter into a closing agreement with a taxpayer, to avoid litigation in cases in which the outcome is largely uncertain. • Grant the Finance Director authority to charge off uncollectible amounts due. Activities that create nexus for B&O tax Council was previously informed that the tax applies only to businesses with a physical location in the City. However, out -of -city businesses may also be liable for the tax. While a business must have established a physical presence to be subject to tax, that is not limited to having an address in the city. It also includes activities such as having sales reps in the city, performing construction, delivering goods in company -owned vehicles, etc. It is the same criteria by which a city business license is required. This is a mandatory provision of the model ordinance and was enacted at the time of passing Ordinance 2689. Thus, it is not related to the attached code changes. This issue is noted here to inform City Council and clarify which businesses may be liable for B&O tax. FINANCIAL IMPACT Establishing additional deductions and exemptions will result in a loss in revenue compared to previous estimates, though the financial impact cannot be determined as the City does not have the necessary financial information from businesses to calculate such an amount. Conversely, application of the tax to businesses located outside of the City will result in an increase in revenue compared to earlier estimates, though this amount also cannot be reliably determined due to the very limited information available to the City. Apart from adding deductions and exemptions, the remaining code changes will not have a financial impact. RECOMMENDATION Review and respond to the proposed redlined code changes. The Council is being asked to consider this item at the November 27, 2023 Committee of the Whole meeting and adopt the ordinance at the subsequent December 4, 2023 Regular Meeting. ATTACHMENTS A. Draft Ordinance B. Attachment to Draft Ordinance 54 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Finance/B&O Tax Memorandum 10-24-23.docx AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; AMENDING ORDINANCE NO. 2689 §11, §12, §13, §22, AND §33, AS CODIFIED IN TMC CHAPTERS 3.26 AND 3.27; TO ADOPT ADDITIONAL BUSINESS AND OCCUPATION TAX DEDUCTIONS AND EXEMPTIONS; TO ESTABLISH ADDITIONAL ADMINISTRATIVE PROVISIONS; AND TO AMEND ADMINISTRATIVE PROVISIONS RELATED TO TAX FILING REQUIREMENTS AND APPEALS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on November 28, 2022, the City Council adopted Ordinance No. 2689 establishing a business and occupation tax on business activities within the City; and WHEREAS, RCW 35.102.040 requires the City to adopt the mandatory provisions of the model ordinance developed by Washington cities when imposing a business and occupation tax, including administrative provisions related to the imposition and collection of such a tax, but also allows for flexibility in certain areas to customize the ordinance based on local goals and policies; and WHEREAS, the model ordinance provides mandatory and standard deductions and exemptions for potential inclusion but also gives the City the ability to create certain deductions and exemptions from business and occupation tax to meet the City's own objectives, set economic policy, and to maintain local control; and WHEREAS, the model ordinance allows flexibility to determine filing frequencies and customize appeal procedures, allowing the City to reduce the administrative burden on businesses beneath the minimum threshold and clarify the appeal process; and WHEREAS, the model ordinance provides additional optional administrative provisions that aid the City in equitably administering and enforcing the tax; WHEREAS, at the time of the adoption of Ordinance No. 2689, the City did not adopt the optional administrative provisions or additional exemptions and deductions; and CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 1 of 21 55 WHEREAS, in 2023, the State has adopted additional definitions for newspaper printing and publishing, resulting in a mandatory change to the model ordinance; and WHEREAS, the City now desires to amend the business and occupation tax in alignment with the model ordinance and State law, having judged that the regulations contained herein best suit the needs of the City; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 3.26.078 Amended. Ordinance No. 2689 §11, as codified at Tukwila Municipal Code (TMC) Section 3.26.078, is hereby amended 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, effect+ e lan„ar„ V 20-08 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 newspapers, periodicals, or magazines, have the same meanings as attributed to those terms in RCW 82.04.280(1) by the Department of Revenue. until January '1, 2034, these activities include those for which the exemption in RCW 82.04.759 applies. Section 2. TMC Section 3.26.090 Amended. Ordinance No. 2689 §12, as codified at TMC Section 3.26.090, is hereby amended to read as follows: 3.26.090 Exemptions A. PublicutilitfesGross receipts taxed under other Tukwila Municipal Code sections. 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 (Utility Tax) or TMC Chapter 3.08 (Gambling Activities Tax). 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 subsection shall not exempt any bonding company from 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. CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 2 of 21 56 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 not apply to 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 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. I. 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. CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 3 of 21 57 L. Nonprofit organizations. This chapter shall not apply to 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. O. Adult family homes. This chapter shall not apply to adult family homes which are licensed as such under chapter 70.128 RCW, or which are specifically exempt from licensing under the rules of the Washington State Department of Social and Health Services. P. Health maintenance organization, health care service contractor, certified health plan. This chapter shall not apply to any health maintenance organization, health care service contractor, or certified health plan in respect to premiums or prepayments that are taxable under RCW 48.14.0201. This exemption is limited to premiums and payments for health benefit plans offered by health care service contractors under chapter 48.44 RCW and health maintenance organizations under chapter 48.46 RCW and does not apply to health care services directly delivered by the employees of a health maintenance organization under chapter 48.46 RCW. Q. International banking facilities. This chapter shall not apply to the gross receipts of an international banking facility. As used in this section, an "international banking facility" means: 1. A facility represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is in this state, and which is incorporated and doing business under the laws of the United States or of this state; or 2. A United States branch or agency of a foreign bank; or 3. An Edge corporation organized under Section 25(a) of the Federal Reserve Act, 12 United States Code 611-631; or 4. An Agreement corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under Section 25 of the Federal Reserve Act, 12 United States Code 601-604 (a), that includes only international banking facility time deposits as defined in 12 CFR 204.8(a)(2) and international banking facility extensions of credit as defined in 12 CFR 204.8(a)(3). CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 4 of 21 58 R. Real estate brokers and associated brokers, agents, or salesmen. This chapter shall not apply to that portion of a real estate commission assigned to another brokerage office pursuant to the division of revenue between the originating brokerage office and a cooperating brokerage office on a particular transaction. Each brokerage office shall pay the tax upon its respective revenue share of the transaction. Furthermore, where a brokerage office has paid the business and occupation tax imposed under this chapter on the gross commission earned by that brokerage office, associate brokers, salesmen, or agents within the same office shall not be required to pay the tax upon their share of the commission from the same transaction. S. Ride sharing. This chapter does not apply to any funds received in the course of ride sharing or ride sharing for persons with special transportation needs in accordance with RCW 46.74.010. T. The City of Tukwila is exempt from the tax levied by this chapter. U. Credit unions. This chapter shall not apply to the gross income of credit unions organized under the laws of this state, any other state, or the United States. V. Farmers —Agriculture. This chapter shall not apply to any farmer in respect to amounts received from selling fruits, vegetables, berries, butter, eggs, fish, milk poultry, meats, or any other agricultural product that is raised, caught, produced, or manufactured by such persons. "Agricultural product" does not include cannabis or cannabis products as defined in RCW 69.50.101. W. Certain corporations furnishing aid and relief. This chapter shall not apply to the gross sales or the gross income received by corporations which have been incorporated under any act of the congress of the United States of America and whose principal purposes are to furnish volunteer aid to members of the armed forces of the United States and also to carry on a system of national and international relief and to apply the same in mitigating the sufferings caused by pestilence, famine, fire, floods, and other national calamities and to devise and carry on measures for preventing the same. X. Certain fraternal and beneficiary organizations. This chapter shall not apply to fraternal benefit societies or fraternal fire insurance associations, as described in Title 48 RCW; nor to beneficiary corporations or societies organized under and existing by virtue of Title 24 RCW, if such beneficiary corporations or societies provide in their bylaws for the payment of death benefits. Exemption is limited, however, to gross income from premiums, fees, assessments, dues or other charges directly attributable to the insurance or death benefits provided by such societies, associations, or corporations. Y. Operation of sheltered workshops. This chapter shall not apply to income received from the department of social and health services for the cost of care, maintenance, support, and training of persons with developmental disabilities at nonprofit group training homes as defined by chapter 71A.22 RCW or to the business activities of nonprofit organizations from the operation of sheltered workshops. For the purposes of this section, "the operation of sheltered workshops" means performance of business activities of any kind on or off the premises of such nonprofit organizations which are performed for the primary purpose of: CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 5 of 21 59 1. providing gainful employment or rehabilitation services to persons with disabilities as an interim step in the rehabilitation process for those who cannot be readily absorbed in the competitive labor market or during such time as employment opportunities for them in the competitive labor market do not exist; or 2. providing evaluation and work adjustment services for persons with disabilities. Z. Nonprofit organizations — Credit and debt services. This chapter shall not apply to nonprofit organizations in respect to amounts derived from provision of the following services: 1. Presenting individual and community credit education programs including credit and debt counseling; 2. Obtaining creditor cooperation allowing a debtor to repay debt in an orderly manner; 3. Establishing and administering negotiated repayment programs for debtors; or 4. Providing advice or assistance to a debtor with regard to subsection (Z)(1), (Z)(2), or (Z)(3) of this section. AA. Nonprofit organizations that are guarantee agencies, issue debt, or provide guarantees for student loans. This chapter shall not apply to gross income received by nonprofit organizations exempt from federal income tax under section 501(c)(3) of the internal revenue code, as hereafter amended, that (1) are guarantee agencies under the federal guaranteed student loan program or that issue debt to provide or acquire student loans; or (2) provide guarantees for student loans made through programs other than the federal guaranteed student loan program. Section 3. TMC Section 3.26.100 Amended. Ordinance No. 2689 §13, as codified at TMC Section 3.26.100, is hereby amended to read as follows: 3.26.100 Deductions In computing the license fee orhusiness and occupation tax imposed under this chapte , 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. B. Cash discount taken by purchaser. In computing tax, there may be deducted from the measure of tax the cash discount amounts 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 CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 6 of 21 60 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 measure of the tax amounts derived from business which the City is prohibited from taxing under the Constitution of the State of Washington or the Constitution of the United 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 may be 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 client that 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 under a professional employer agreement. G. Interest on investments or loans secured by mortgages or deeds of trust. In computing tax, to the extent permitted by Chapter 82.14A 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. H. Compensation from public entities for health or social welfare services. In computing tax there may be deducted from the measure of tax amounts received from the United States or any instrumentality thereof or from the state of Washington or any municipal corporation or political subdivision thereof as compensation for, or to support, health or social welfare services rendered by a health or social welfare organization, as defined in RCW 82.04.431, or by a municipal corporation or political subdivision, except deductions are not allowed under this section for amounts that are received under an employee benefit plan. For purposes of this subsection, "employee benefit plan" includes the military benefits program authorized in 10 USC Sec. 1071 et seq., as amended, or amounts payable pursuant thereto. I. Membership fees and certain service fees by nonprofit youth organization. In computing tax due under this chapter, there m y be deducted from the measure of tax all amounts received by a nonprofit youth organization: CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 7 of 21 61 1. As membership fees or dues, irrespective of the fact that the payment of the membership fees or dues to the organization may entitle its members, in addition to other rights or privileges, to receive services from the organization or to use the organization's facilities; or 2. From members of the organization for camping and recreational services provided by the organization or for the use of the organization's camping and recreational facilities. For purposes of this subsection (I), "nonprofit youth organization" means a nonprofit organization engaged in character building of youth which is exempt from property tax under RCW 84.36.030. J. Initiation fees, dues, and certain charges received by nonprofit organization. In computing tax, a nonprofit organization may deduct from the measure of tax amounts derived from bona fide: 1. Initiation fees; 2. Dues; 3. Contributions; 4. Donations; 5. Tuition fees; 6. Charges made by a nonprofit trade or professional organization for attending or occupying space at a trade show, convention, or educational seminar sponsored by the nonprofit trade or professional organization, which trade show, convention, or educational seminar is not open to the general public; 7. Charges made for operation of nonprofit kindergartens; and 8. Endowment funds. This subsection (J) shall not be construed to exempt any person, association, or society from tax liability upon selling tangible personal property or upon providing facilities or services for which a special charge is made to members or others. If dues are in exchange for any significant amount of goods or services rendered by the recipient thereof to members without any additional charge to the member, or if the dues are graduated upon the amount of goods or services rendered, the value of such goods or services shall not be considered as a deduction under this subsection. K. Artistic and cultural organizations. In computing tax, there may be deducted from the measure of tax those amounts received by artistic or cultural organizations, as defined in this chapter, which represent: 1. Income derived from business activities conducted by the organization; provided, that this deduction does not apply to retail sales made by artistic and cultural organizations; CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 8 of 21 62 2. Amounts received from the United States or any instrumentality thereof or from the state of Washington or any municipal corporation or subdivision thereof as compensation for, or to support, artistic or cultural exhibitions, performances, or programs provided by an artistic or cultural organization for attendance or viewing by the general public; or 3. Amounts received as tuition charges collected for the privilege of attending artistic or cultural education programs. L. Interest on obligations of the state, its political subdivisions, and municipal corporations. In computing tax, there may be deducted from the measure of tax by those engaged in banking, loan, security, or other financial businesses amounts derived from interest paid on all obligations of the state of Washington, its political subdivisions, and municipal corporations organized pursuant to the laws thereof. M. Interest on loans to farmers and ranchers, producers, or harvesters of aquatic products, or their cooperatives. In computing tax, there may be deducted from the measure of tax amounts derived as interest on loans to bona fide farmers and ranchers, producers, or harvesters of aquatic products, or their cooperatives by a lending institution which is owned exclusively by its borrowers or members and which is engaged solely in the business of making loans and providing finance -related services to bona fide farmers and ranchers, producers, or harvesters of aquatic products, their cooperatives, rural residents for housing, or persons engaged in furnishing farm -related or aquatic - related services to these individuals or entities. N. Repair, maintenance, replacement, etc., of residential structures and commonly held property — Eligible organizations. 1. In computing tax, there may be deducted from the measure of tax amounts used solely for repair, maintenance, replacement, management, or improvement of the residential structures and commonly held property, but excluding property where fees or charges are made for use by the public who are not guests accompanied by a member, which are derived by: a. A cooperative housing association, corporation, or partnership from a person who resides in a structure owned by the cooperative housing association, corporation, or partnership; b. An "association of apartment owners" as defined in RCW 64.32.010, as now or hereafter amended, from a person who is an "apartment owner" as defined in RCW 64.32.010; or c. An association of owners of residential property from a person who is a member of the association. "Association of owners of residential property" means any organization of all the owners of residential property in a defined area who all hold the same property in common within the area. 2. For the purposes of this subsection "commonly held property" includes areas required for common access such as reception areas, halls, stairways, parking, etc., and may include recreation rooms, swimming pools, and small parks or recreation areas; but CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 9 of 21 63 is not intended to include more grounds than are normally required in a residential area, or to include such extensive areas as required for golf courses, campgrounds, hiking and riding areas, boating areas, etc. 3. To qualify for the deductions under this subsection: a. The salary or compensation paid to officers, managers, or employees must be only for actual services rendered and at levels comparable to the salary or compensation of like positions within the country wherein the property is located; b. Dues, fees, or assessments in excess of amounts needed for the purposes for which the deduction is allowed must be rebated to the members of the association; c. Assets of the association or organization must be distributable to all members and must not inure to the benefit of any single member or group of members. O. Radio and television broadcasting — Advertising agency fees — National, regional, and network advertising — Interstate allocations. In computing tax, there may be deducted from the measure of tax by radio and television broadcasters amounts representing the following: 1. Advertising agencies' fees when such fees or allowances are shown as discount or price reduction in the billing or that the billing is on a net basis, i.e., less the discount: 2. Actual gross receipts from national network, and regional advertising or a "standard deduction" as provided by RCW 82.04.280; and 3. Local advertising revenue that represents advertising which is intended to reach potential customers of the advertiser who are located outside the state of Washington. The director may issue a rule that provides detailed guidance as to how these deductions are to be calculated. Section 4. TMC Section 3.27.040 Amended. Ordinance No. 2689 §22, as codified at TMC Section 3.27.040, is hereby amended 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 annual license fee or registration fee assessed under this 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 monthly or 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. CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 10 of 21 64 C. Tax returns must be filed and returned by the due date whether or not any tax is owed. D. Minimum threshold and nonreporting status. 1. For purposes of the tax imposed by TMC Chapter 3.26, any person whose value of products, gross proceeds of sales, or gross income of the business, subject to 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. 2. Notwithstanding subsection (D)(1) of this section, the Director may assign a nonreportinq status and relieve any person of the requirement to file returns if the person's value of products, gross proceeds of sales, or gross income of the business subject to tax after allowable deductions does not exceed $750,000 per calendar year. 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 period shall be included unless it is a Saturday, Sunday, or City or Federal legal holiday, in which case the last day of such period shall be the next succeeding day which is neither 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 the 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 5. TMC Section 3.27.140 Amended. Ordinance No. 2689 §33, as codified at TMC Section 3.27.140, is hereby amended to read as follows: 3.27.140 Administrative Appeal,, +�,,� A. A�n`y p rs ev�ed--by the c T�iution oft a tax deteermined-to be rdue to the such determination by filing a written notice of appeal with the City Clerk within 20 calendar days from thc datc on which such person was givcn noticc of thc tax. Thc noticc amount of thc tax was incorrcct. Thc Financc Dircctor or dcsigncc shall rcvicw thc basis may sustain or modify the amount of tax owed. Notice of the administrative decision shall CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 11 of 21 65 be sent to the appellant by certified mail within 10 days of issuance. Correction of tax. Any person, except one who has failed to comply with TMC Section 3.27.060, aggrieved by the amount of the tax, penalty, or interest assessed by the Director pursuant to this chapter, or by the denial of a refund by the Director, may request a correction and conference for review of the assessment or denial of a refund. Such request must be made within 30 calendar days from the date on which such person was issued notice of the assessment or refund denial, or within the period covered by an extension of the due date granted by the Director. The request for correction must state the grounds for the request, including a detailed explanation of why the amount of the tax determined to be due by the Director was incorrect. Interest and penalties shall continue to accrue during the Director's review of a request for a correction, except to the extent that the Director later determines that a tax assessment was too high or the delay in issuing a determination is due to unreasonable delays caused by the Director. The Director shall make a final determination regarding the assessment or refund denial and shall notify the taxpayer of the Director's determination within 60 days after the conference, unless otherwise notified in writing by the Director. Such determination shall be subject to appeal pursuant to subsection (B) of this section. If no request for correction is filed within the time period provided herein, the assessment covered by such notice shall become final and immediately due and payable, and no appeal to the hearing examiner shall be allowed. B. Appeal. The appellant, if aggrieved by the decision of the Finance Director or designecDirector issued under subsection A of this section, may then appeal to the City Hearing Examiner within 20 30 calendar days of the date the administrative decision is mailed to the appellant. The notice of appeal must state the grounds for anneal incli ding a detailed explanation of why the administrative decision is incorrect. If no appeal is filed within the time period provided herein, the assessment covered by such notice shall become final and immediately due and payable. No refund request may be made for the audit period covered in that assessment. Failure to follow the appeal procedures in this section shall preclude the taxpayer's right to appeal. The notice of appeal must be accompanied by an Appeal Fee in accordance with the fee schedule adopted by resolution of the City Council in the amount of $300 and must contain the following information in writing:,- 1. The name and address of the taxpayer; 2. A statement identifying the determination of the Director from which the appeal is taken; 3. A statement setting forth the grounds upon which the appeal is taken and identifying specific errors the Director is alleged to have made in making the determination; and 4. A statement identifying the requested relief from the determination being appealed. CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 12 of 21 66 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. F. Interest and/or penalties shall continue to accrue on all unpaid amounts, in accordance with TMC 3.27.090 and 3.27.110, notwithstanding the fact that an appeal has been filed. If the hearing examiner determines that the taxpayer is owed a refund, such refund amount shall be paid to the taxpayer in accordance with TMC 3.27.100. Section 6. Regulations Established. A new TMC Section 3.27.145 is hereby established to read as follows: 3.27.145 Judicial review of administrative appeal decision After first exhausting the right of administrative appeal set forth in this chapter, the taxpayer or the City may obtain judicial review of the hearing examiner's administrative decision by applying for a writ of review in the King County superior court, in accordance with the procedure set forth in Chapter 7.16 RCW, other applicable law, and court rules, within 21 calendar days of the date of the decision of the hearing examiner. The City shall have the same right of review from the administrative decision of the hearing examiner as does a taxpayer. The decision of the hearing examiner shall be final and conclusive unless review is sought in compliance with this section. Section 7. Regulations Established. A new TMC Section 3.27.180 is hereby established to read as follows: 3.27.180 Director to make rules The Director shall have the power, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with law for the purpose of carrying out the provisions of this chapter and it shall be unlawful to violate or fail to comply with, any such rule or regulation. CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 13 of 21 67 Section 8. Regulations Established. A new TMC Section 3.27.190 is hereby established to read as follows: 3.27.190 Ancillary allocation authority of Director The Director is authorized to enter into agreements with other Washington cities which impose an eligible gross receipts tax: 1. To conduct an audit or joint audit of a taxpayer by using an auditor employed by the City of Tukwila, another city, or a contract auditor, provided, that such contract auditor's pay is not in any way based upon the amount of tax assessed; 2. To allocate or apportion in a manner that fairly reflects the gross receipts earned from activities conducted within the respective cities the gross proceeds of sales, gross receipts, or gross income of the business, or taxes due from any person that is required to pay an eligible gross receipts tax to more than one Washington city. 3. To apply the City's tax prospectively where a taxpayer has no office or place of business within the City and has paid tax on all gross income to another Washington city where the taxpayer is located; provided that the other city maintains an eligible gross receipts tax, and the income was not derived from contracts with the City. Section 9. Regulations Established. A new TMC Section 3.27.200 is hereby established to read as follows: 3.27.200 Mailing of notices Any notice required by this chapter to be mailed to any taxpayer or licensee shall be sent by ordinary mail, addressed to the address of the taxpayer or licensee as shown by the records of the Director. Failure of the taxpayer or licensee to receive any such mailed notice shall not release the taxpayer or licensee from any tax, fee, interest, or any penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. It is the responsibility of the taxpayer to inform the Director in writing about a change in the taxpayer's address. Section 10. Regulations Established. A new TMC Section 3.27.210 is hereby established to read as follows: 3.27.210 Tax declared additional The tax and any applicable fee levied herein shall be additional to any license fee or tax imposed or levied under any law or any other ordinance of the city of Tukwila except as herein otherwise expressly provided. Section 11. Regulations Established. A new TMC Section 3.27.220 is hereby established to read as follows: 3.27.220 Public disclosure — Confidentiality — Information sharing A. For purposes of this section: CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 14 of 21 68 1. "Disclose" means to make known to any person in any manner whatever a return or tax information. 2. "Return" means a tax or information return or claim for refund required by, or provided for or permitted under, the Tukwila Municipal Code, which is filed with the Director, on behalf of, or with respect to a person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists that are supplemental to, or part of, the return so filed; 3. "Tax information" means: a. A taxpayer's identity; b. The nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemption, credits, assets, liability, net worth, tax liability deficiencies, over -assessments, or tax payments, whether taken from the taxpayer's books and records or any other source; c. Whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing; or d. Other data received by, recorded by, prepared by, or provided to the City with respect to the determination or the existence, or possible existence, of liability, or the amount thereof, of a person under Chapter 3.26 TMC for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense. However, data, material, or documents that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section. Nothing in this chapter requires any person possessing data, material, or documents made confidential and privileged by this section to delete information from such data, material, or documents so as to permit its disclosure. 3. "City agency" means every city office, department, division, bureau, board, commission, or other city agency. 4. "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer. B. Returns and tax information are confidential and privileged, and except as authorized by this section, neither the director nor any other person may disclose any return or tax information. C. This section does not prohibit the Director from: 1. Disclosing such return or tax information in a civil or criminal judicial proceeding or an administrative proceeding: a. In respect of any tax imposed under Chapter 3.26 TMC if the taxpayer or its officer or other person liable under this title is a party in the proceeding; or b. In which the taxpayer about whom such return or tax information is sought and another state agency are adverse parties in the proceeding; CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 15 of 21 69 2. Disclosing, subject to such requirements and conditions as the Director prescribes by rules adopted pursuant to TMC 3.27.180, such return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, tax information not received from the taxpayer must not be so disclosed if the Director determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or another person, or that such disclosure would identify a confidential informant, or that such disclosure is contrary to any agreement entered into by the City that provides for the reciprocal exchange of information with other government agencies which agreement requires confidentiality with respect to such information unless such information is required to be disclosed to the taxpayer by the order of any court; 3. Publishing statistics so classified as to prevent the identification of particular returns or reports or items thereof; 4. Disclosing such return or tax information, for official purposes only, to the mayor or city attorney, or to any city agency, or to any member of the city council or their authorized designees dealing with matters of taxation, revenue, trade, commerce, the control of industry, or the professions; 5. Permitting the city's records to be audited and examined by the proper state officer, his or her agents, and employees; 6. Disclosing any such return or tax information to a peace officer as defined in RCW 9A.04.110 or county prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or county prosecuting attorney who receives the return or tax information may disclose that return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the return or tax information originally was sought or where otherwise allowed to be disclosed under this section; 7. Disclosing any such return or tax information to the proper officer of the Internal Revenue Service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of the city; 8. Disclosing any such return or tax information to the United States Department of Justice, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Department of Defense, the Immigration and Customs Enforcement and the Customs and Border Protection Agencies of the United States Department of Homeland Security, the United States Coast Guard, the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of Treasury, and the United States Department of Transportation, or any authorized representative of these federal agencies or their successors, for official purposes; CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 16 of 21 70 9. Publishing or otherwise disclosing the text of a written determination designated by the director as a precedent pursuant to RCW 82.32.410; 10. Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, mailing address, revenue tax registration numbers and the active/closed status of such registrations, state or local business license registration identification and the active/closed status and effective dates of such licenses, reseller permit numbers and the expiration date and status of such permits, North American Industry Classification System or Standard Industrial Classification code of a taxpayer, and the dates of opening and closing of business. Except that this subsection may not be construed as giving authority to the city or any recipient to give, sell, or provide access to any list of taxpayers for any commercial purpose; 11. Disclosing such return or tax information that is also maintained by another Washington State or local governmental agency as a public record available for inspection and copying under the provisions of Chapter 42.56 RCW or is a document maintained by a court of record and is not otherwise prohibited from disclosure; 12. Disclosing such return or tax information to the United States Department of Agriculture, or successor department or agency, for the limited purpose of investigating food stamp fraud by retailers; 13. Disclosing to a financial institution, escrow company, or title company, in connection with specific real property that is the subject of a real estate transaction, current amounts due the city for a filed tax warrant, judgment, or lien against the real property; 14. Disclosing to a person against whom the director has asserted liability as a successor under TMC 3.27.130 return or tax information pertaining to the specific business of the taxpayer to which the person has succeeded; 15. Disclosing real estate excise tax affidavit forms filed under Chapter 3.60 TMC in the possession of the city, including real estate excise tax affidavit forms for transactions exempt or otherwise not subject to tax; 16. Disclosing such return or tax information to the court or hearing examiner in respect to the city's application for a subpoena if there is probable cause to believe that the records in possession of a third party will aid the director in connection with its official duties under this title or a civil or criminal investigation. D. The Director may disclose return or taxpayer information to a person under investigation or during any court or administrative proceeding against a person under investigation as provided in this subsection (D). 1. The disclosure must be in connection with the Director's official duties under TMC Title 3, or a civil or criminal investigation. The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the return or tax information to be disclosed. The Director may disclose return or tax information such as invoices, contracts, bills, statements, resale or exemption certificates, or checks. However, the Director may not disclose general ledgers, sales or cash receipt journals, check registers, accounts receivable/payable ledgers, general CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 17 of 21 71 journals, financial statements, expert's workpapers, income tax returns, state tax returns, tax return workpapers, or other similar data, materials, or documents. 2. Before disclosure of any tax return or tax information under this subsection (D), the Director must, through written correspondence, inform the person in possession of the data, materials, or documents to be disclosed. The correspondence must clearly identify the data, materials, or documents to be disclosed. The Director may not disclose any tax return or tax information under this subsection (D) until the time period allowed in subsection (D)(3) of this section has expired or until the court has ruled on any challenge brought under subsection (D)(3) of this section. 3. The person in possession of the data, materials, or documents to be disclosed by the director has 20 days from the receipt of the written request required under subsection (D)(2) of this section to petition the superior court of the county in which the petitioner resides for injunctive relief. The court must limit or deny the request of the Director if the court determines that: a. The data, materials, or documents sought for disclosure are cumulative or duplicative, or are obtainable from some other source that is more convenient, less burdensome, or less expensive; b. The production of the data, materials, or documents sought would be unduly burdensome or expensive, taking into account the needs of the director, the amount in controversy, limitations on the petitioner's resources, and the importance of the issues at stake: or c. The data, materials, or documents sought for disclosure contain trade secret information that, if disclosed, could harm the petitioner. 4. The Director must reimburse reasonable expenses for the production of data, materials, or documents incurred by the person in possession of the data, materials, or documents to be disclosed. 5. Requesting information under subsection (D)(2) of this section that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax return or tax information under this section. E. Service of a subpoena issued by the court or by a hearing examiner does not constitute a disclosure of return or tax information under this section. Notwithstanding anything else to the contrary in this section, a person served with a subpoena issued by the court or by the hearing examiner may disclose the existence or content of the subpoena to that person's legal counsel. F. Any person acquiring knowledge of any return or tax information in the course of his or her employment with the City and any person acquiring knowledge of any return or tax information as provided under subsection ©(4), (5), (6), (7), (8), (9), or (11) of this section, who discloses any such return or tax information to another person not entitled to knowledge of such return or tax information under the provisions of this section, is guilty of a misdemeanor. If the person guilty of such violation is an officer or employee of the state, CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 18 of 21 72 such person must forfeit such office or employment and is incapable of holding any public office or employment in this city for a period of two years thereafter. Section 12. Regulations Established. A new TMC Section 3.27.230 is hereby established to read as follows: 3.27.230 Tax constitutes debt Any applicable fee or tax due and unpaid under this chapter, and all interest and penalties thereon, shall constitute a debt to the city of Tukwila and may be collected in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. Section 13. Regulations Established. A new TMC Section 3.27.240 is hereby established to read as follows: 3.27.240 Unlawful actions — Violation - Penalties A. It shall be unlawful for any person subject to the tax, fee, or registration provisions of this chapter: 1. To violate or fail to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the director; 2. To make any false statement on any license or registration application or tax return; 3. To aid or abet any person in any attempt to evade payment of a license, or fee, or tax: 4. To fail to appear or testify in response to a subpoena; 5. To testify falsely in any investigation, audit, or proceeding conducted pursuant to this chapter. B. Violation of any of the provisions of this chapter is a gross misdemeanor. Any person convicted of a violation of this chapter may be punished by a fine not to exceed $1,000, imprisonment not to exceed one year, or both fine and imprisonment. Penalties or punishments provided in this chapter shall be in addition to all other penalties provided by law. C. Any person, or officer of a corporation, convicted of continuing to engage in business after the revocation of a registration certificate shall be guilty of a gross misdemeanor and may be punished by a fine not to exceed $5,000, or imprisonment not to exceed one year, or both fine and imprisonment. Section 14. Regulations Established. A new TMC Section 3.27.245 is hereby established to read as follows: CC: Legislative Development\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 19 of 21 73 3.27.245 Suspension or revocation of business license The Director shall have the power and authority to suspend or revoke any license issued under the provisions of TMC 5.04 if the licensee has failed to comply with the provisions of this chapter and Chapter TMC 3.26 (business and occupation tax). Such suspension or revocation shall follow the same procedure as provided in TMC 5.04.110 and TMC 5.04.112. Section 15. Regulations Established. A new TMC Section 3.27.250 is hereby established to read as follows: 3.27.250 Closing agreement provisions The Director may enter into an agreement in writing with any person relating to the liability of such person in respect of any tax imposed by any of the chapters within this title and administered by this chapter for any taxable period(s). Upon approval of such agreement, evidenced by execution thereof by the director and the person so agreeing, the agreement shall be final and conclusive as to the tax liability or tax immunity covered thereby, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact: A. The case shall not be reopened as to the matters agreed upon, or the agreement modified, by the director or the taxpayer; and B. In any suit, action or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded. Section 16. Regulations Established. A new TMC Section 3.27.255 is hereby established to read as follows: 3.27.255 Charge -off of uncollectible taxes The Director may charge off any tax, penalty, or interest that is owed by a taxpayer, if the Director reasonably ascertains that the cost of collecting such amounts would be greater than the total amount that is owed or likely to be collected from the taxpayer. Section 17. 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 18. 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\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 20 of 21 74 Section 19. 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 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 , 2023. 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\Amendments to B&O Tax 11-1-23 A. Schierenbeck A. Youn Page 21 of 21 75 76 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: '1.26.050 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. • Adult family homes. • Health maintenance organization, health care service contractor, certified health plan. • International banking facilities • Real estate brokers and associated brokers, agents, or salesmen. • Ride sharing. • Credit unions. • Farmers — Agriculutre. • Certain corporations furnishing aid and relief. • Certain fraternal and beneficiary organizations. • Operation of sheltered workshops. • Nonprogfit organizations — Credit and debt services. • Nonprofit organizations that are guarantee agencies, issue debt, or provide guarantees for student loans. 3.26.100 Deductions • Compensation from public entities for health or social welfare services. 77 • Membership fees and certain services by nonprofit youth organization. • Initiation fees, dues, and certain charges received by nonprofit organization. • Artistic and cultural organizations. • Interest on obligations of the state, its political subdivisions, and municipal corporations. • Interest on loans to farmers and ranchers, producers, or harvesters of aquatic products, or their cooperatives. • Repair, maintenance, or replacement of residential structures and commonly held property by eligible organizations. • Certain advertising revenue by radio and television broadcasters. .150 Hardship Appeal Procedure The Director shall develop a financial hardship appeal procedure by January 1, 2024. .160 Stakeholder Involvement The City shall develop a stakeholder committee that includes members of the business community to advise the Director and City on the long-term financial sustainability of the City. This effort shall include a review of the appropriate levels of taxation of businesses within the City and will culminate before the 2025-2026 Biennial Budget process to inform the Council of any recommended changes to revenue sources for the coming biennium. 3.27.170 Review A. The City shall undertake a regular review of the Business and Occupation Tax as codified in TMC Chapter 3.26. During the 2023- 2024 biennium, this review will occur through the stakeholder process identified in TMC Section 3.27.160. Beginning in the 2025-2026 biennium, the review shall occur in odd -numbered years to inform the budget process that commences the following year. B. The Director and Police Chief shall provide quarterly reports to the Council on public safety funding associated with the Business and Occupation Tax. and Reporting Provisions 78 City of Tukwila City Council Finance & Governance Committee Meeting Minutes November 13, 2023 - 5:30 p.m. - Hybrid Meeting; Duwamish Conference Room & MS Teams Councilmembers Present: Staff Present: I. BUSINESS AGENDA Kate Kruller, Chair; Kathy Hougardy, De'Sean Quinn Tony Cullerton, Vicky Carlsen, Laurel Humphrey, Adam Schierenbeck, LaTricia Kinlow, Kim Walden, Valerie Marino, Julie Hatley A. Ordinance: Amending Business & Occupation Tax Provisions in the TMC Staff is seeking approval of an ordinance that would adopt addition business and occupation tax deductions and exemptions and establish or amend administrative provisions to align with other Washington cities and allow more effective administration. Item(s) for follow-up: Provide more information about the proposed credit union exemption, including if other cities with headquarters provide the exemption. Committee Recommendation Unanimous approval. Forward to November 27, 2023 Committee of the Whole. B. Municipal Court Staffing Request Staff is seeking Council approval of 1.25 FTE to provide additional coverage to support the automated traffic safety camera enforcement program. Committee Recommendation Unanimous approval. Forward to November 20, 2023 Regular Meeting. C. September General Fund Expenditure Report Staff presented the report. Committee Recommendation Discussion only. MISCELLANEOUS The meeting adjourned at 6:18 p.m. Committee Chair Approval 79 80 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM ADDENDUM TO: Finance and Governance Committee FROM: Vicky Carlsen, Finance Director BY: Adam Schierenbeck, Senior Fiscal Coordinator CC: Mayor Ekberg DATE: November 16, 2023 SUBJECT: B&O Tax TMC Changes — Credit Union Exemption ISSUE Staff are proposing code changes to administer the business and occupation (B&O) tax more effectively, and to add exemptions and deductions based on local goals and policies. When discussing the code changes In the Finance & Governance Committee Meeting held on November 13, 2023, a question was raised regarding the proposed exemption for credit unions, namely whether other cities with credit union headquarters also provide for this exemption. BACKGROUND In 2022, the City Council passed Ordinance 2689 establishing a B&O tax on business activities within the City. At the time the City did not adopt additional exemptions and deductions that are common to neighboring cities and to the State of Washington. One of the proposed exemptions provides that credit unions are not required to file or pay B&O tax returns. DISCUSSION Staff researched the Revised Code of Washington and other Washington municipalities and found that the following jurisdictions provide a B&O tax exemption for credit unions: • City of Seattle • City of Renton • City of Auburn • City of Kent • City of Tacoma • City of Olympia • City of Bellingham • State of Washington This non-exclusive list covers neighboring jurisdictions, larger cities that impose a B&O tax, and the State of Washington's B&O tax. ATTACHMENTS No attachments 81 82 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/27/23 DR 12/4/23 DR ITEM INFORMATION ITEM NO. 4.D. STAFF SPONSOR: DAVID ROSEN ORIGINAL AGENDA DATE: 11/27/23 AGENDA ITEM TITLE Contract Approval: Tukwila Community Center Business Plan & Recreation Programming Plan CATEGORY ® Discussion Mtg Date 11/27/23 ❑ Motion Mtg Date Resolution Mtg Date ❑ Ordinance Mtg Date Bid Award Mtg Date 12/4/23 SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ Public Hearing Mtg Date ❑ Other Mtg Date ® P&R ❑ Police ❑ PTV SPONSOR'S SUMMARY After a competitive Request for Proposals process, Parks & Recreation staff have awarded the proposed project to PROS Consulting. Said project will deliver a Business Plan specific to the Tukwila Community Center as well as a Recreation Programming Plan for the department overall. The project's do not exceed cost is $119,405 with estimated completion by early Q3 of 2024. Staff requests council approve the proposal at the December 4th Regular Meeting via consent agenda so work may commence. REVIEWED BY ❑ Trans&Infrastructure Svcs ® Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/13/23 COMMITTEE CHAIR: COUNCILMEMBER ABDI RECOMMENDATIONS: SPONSOR/ADMIN. Parks & Recreation Department COMMITTEE No recommendation; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED $119,405 AMOUNT BUDGETED $119,405 APPROPRIATION REQUIRED $0 Fund Source: PARKS ACQUISITON, LAND, AND DEVELOPMENT FUND (301) Comments: Funding source is the King County Parks, Recreation, Trails, and Open Space Levy 11/27/23 12/4/23 MTG. DATE 11/27/23 12/4/23 RECORD OF COUNCIL ACTION ATTACHMENTS Informational Memorandum dated November 3, 2023 Proposed Professional Services Agreement Minutes from the 11/13 CSS Committee meeting 83 84 City of Tukwila Parks & Recreation Department - Pete Mayer, Director Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Services & Safety Committee FROM: David Rosen, Parks & Recreation Analyst DATE: November 3, 2023 SUBJECT: Approval of Tukwila Community Center Business & Program Plan Proposal ISSUE After a competitive Request for Proposal (RFP) process with four respondents, Tukwila Parks and Recreation has selected PROS Consulting to develop both a Business Plan for the Tukwila Community Center (TCC) as well as a comprehensive Recreation Programming Plan for the department. Staff seeks expenditure authority to engage in the requested work. BACKGROUND Parks and recreation customer behaviors, needs, demands and trends continue to evolve post-COVID- 19. The community is also growing more comfortable in attending public gatherings and events. Participation and visitation rates continue to increase as new and expanded programs are introduced. Additionally, Tukwila is growing more diverse and interests in parks and recreation activities are changing. Staff seeks to adapt to these dynamic circumstances and update important strategic documents to refresh and inform business, customer and operational practices for the Tukwila Community Center and ensure a contemporary mix of recreation programs, services and events. The TCC business plan will provide recommendations regarding operations, management, maintenance, and capital repair based on sound customer, market and facility research. This work will also include an analysis of recommended days and hours of operations, staffing and customer support structures, fees and charges and best practices in offering a blend of drop -in, program, event, and community use of TCC. The assessment of our community and recreation programming efforts across arts/culture, fitness/wellness, adaptive and specialized recreation, camps, sports & tournaments, and special events will help ensure we are adequately anticipating and serving the needs of children, youth, adults, families and seniors. Surveys and focus group activities will be part of a broad engagement strategy. The work will help guide fiscal, operational and marketing decision making and methods to reduce/eliminate barriers to maximize community access, value and benefit while achieving customer and financial performance goals. Through these combined efforts, an updated cost recovery model will be developed that strives to reduce/eliminate financial burdens- where such barriers prevent participation by those who could most benefit from the services- with the City's practical need to offset some of its costs and investments. The Department seeks a flexible set of tools to cost and appropriately value its programs and services while serving as many as possible throughout our community. PROS Consulting is headquartered in Brownsburg, Indiana and has been in operation since 1995, with a planning team that has over 100 combined years of experience as former parks and recreation Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 85 managers. In that time PROS has completed more than 1,000 projects in 47 states and 7 countries, including 200 business plans, 150 financial management plans, and 300 programming studies. PROS also has recent and relevant experience locally, having completed similar projects for Metro Parks Tacoma, City of Kent, and Si View Metro Parks. DISCUSSION Deliverables from PROS Consulting as part of this project include: • Demographic Trends Analysis of City of • Capital Improvement Review of TCC Tukwila and the TCC service area • Marketing Recommendations • Alternative Provider Market Analysis • Cost Recovery Model • SWOT Analysis • Financial Pro Forma • Trend Analysis & Market Segmentation • Statistically Valid Survey for Service Determination Delivery • Space Utilization Analysis Upon execution of the agreement work will immediately commence- with final products anticipated by Q3 2024. This would allow Parks & Recreation staff to utilize the project's deliverables in informing the City's Financial Sustainability Plan and Utility Rate Study, as well as the creation of the FY25/26 budget slated to be approved by Council in Q4 of 2024. FINANCIAL IMPACT Approval of this contract will encumber expenses of $119,405 against the Parks Land, Acquisition, and Development Fund (301), using funds from the King County Parks, Recreation, Trails, and Open Space Levy. Approval of this contract does not create any General Fund (000) inflows or outflows. RECOMMENDATION Staff recommend the committee forward this item to the November 27th Committee of the Whole Meeting and subsequent December 4th Regular Meeting Consent Agenda. ATTACHMENTS A --- Proposed Professional Services Agreement Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 86 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Contract Number: PROFESSIONAL SERVICES AGREEMENT (Includes consultants, architects, engineers, accountants, and other professional services) THIS AGREEMENT is entered into between the City of Tukwila, Washington, hereinafter referred to as "the City", and PROS Consulting Inc., hereinafter referred to as "the Consultant", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. Project Designation. The Consultant is retained by the City to perform Research & Consulting services in connection with the project titled Tukwila Community Center Business Plan & Recreation Programming Plan. 2. Scope of Services. The Consultant agrees to perform the services, identified on Exhibit "A" attached hereto, including the provision of all labor, materials, equipment and supplies. 3. Duration of Agreement; Time for Performance. This Agreement shall be in full force and effect fora period commencing upon execution and ending 12/31/24, unless sooner terminated under the provisions hereinafter specified. Work under this Agreement shall commence upon written notice by the City to the Consultant to proceed. The Consultant shall perform all services and provide all work product required pursuant to this Agreement no later than 9/1/24 unless an extension of such time is granted in writing by the City. 4. Payment. The Consultant shall be paid by the City for completed work and for services rendered under this Agreement as follows: A. Payment for the work provided by the Consultant shall be made as provided on Exhibit "B" attached hereto, provided that the total amount of payment to the Consultant shall not exceed $119,405 without express written modification of the Agreement signed by the City. B. The Consultant may submit vouchers to the City once per month during the progress of the work for partial payment for that portion of the project completed to date. Such vouchers will be checked by the City and, upon approval thereof, payment shall be made to the Consultant in the amount approved. C. Final payment of any balance due the Consultant of the total contract price earned will be made promptly upon its ascertainment and verification by the City after the completion of the work under this Agreement and its acceptance by the City. D. Payment as provided in this section shall be full compensation for work performed, services rendered, and for all materials, supplies, equipment and incidentals necessary to complete the work. E. The Consultant's records and accounts pertaining to this Agreement are to be kept available for inspection by representatives of the City and the state of Washington for a period of three (3) years after final payments. Copies shall be made available upon request. 87 5. Ownership and Use of Documents. All documents, drawings, specifications and other materials produced by the Consultant in connection with the services rendered under this Agreement shall be the property of the City whether the project for which they are made is executed or not. The Consultant shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with the Consultant's endeavors. The Consultant shall not be responsible for any use of the said documents, drawings, specifications or other materials by the City on any project other than the project specified in this Agreement. 6. Compliance with Laws. The Consultant shall, in performing the services contemplated by this Agreement, faithfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the services rendered under this Agreement. 7. Indemnification. The Consultant shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Consultant in performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees, and volunteers, the Consultant's liability hereunder shall be only to the extent of the Consultant's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Consultant's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 8. Insurance. The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. Consultant's maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Consultant to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Amounts and Scope of Insurance. Consultant shall obtain insurance of the types and with the limits described below: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Automobile Liability insurance shall cover all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate. Commercial General Liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop -gap independent contractors and personal injury and advertising injury. The City shall be named as an additional insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO endorsement form CG 20 26. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. CA revised May 2020 88 Page 2 4. Professional Liability with limits no less than $2,000,000 per claim and $2,000,000 policy aggregate limit. Professional Liability insurance shall be appropriate to the Consultant's profession. B. Public Entity Full Availability of Contractor Limits. If the Contractor maintains higher insurance limits than the minimums shown above, the Public Entity shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Contractor, irrespective of whether such limits maintained by the Contractor are greater than those required by this Contract or whether any certificate of insurance furnished to the Public Entity evidences limits of liability lower than those maintained by the Contractor. C. Other Insurance Provision. The Consultant's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance with respect to the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Consultant's insurance and shall not be contributed or combined with it. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. Verification of Coverage. Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. Upon request by the City, the Consultant shall furnish certified copies of all required insurance policies, including endorsements, required in this Agreement and evidence of all subcontractors' coverage. F. Notice of Cancellation. The Consultant shall provide the City with written notice of any policy cancellation, within two business days of their receipt of such notice. G. Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days notice to the Consultant to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Consultant from the City. 9. Independent Contractor. The Consultant and the City agree that the Consultant is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither the Consultant nor any employee of the Consultant shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to the Consultant, or any employee of the Consultant. 10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or retained any company or person, other than a bonafide employee working solely for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bonafide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award or making of this contract. For breach or violation of this warrant, the City shall have the right to annul this contract without liability, or in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. CA revised May 2020 Page 3 89 11. Discrimination Prohibited. Contractor, with regard to the work performed by it under this Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin, age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation, the presence of any disability, or any other protected class status under state or federal law, in the selection and retention of employees or procurement of materials or supplies. 12. Assignment. The Consultant shall not sublet or assign any of the services covered by this Agreement without the express written consent of the City. 13. Non -Waiver. Waiver by the City of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 14. Termination. A. The City reserves the right to terminate this Agreement at any time by giving ten (10) days written notice to the Consultant. B. In the event of the death of a member, partner or officer of the Consultant, or any of its supervisory personnel assigned to the project, the surviving members of the Consultant hereby agree to complete the work under the terms of this Agreement, if requested to do so by the City. This section shall not be a bar to renegotiations of this Agreement between surviving members of the Consultant and the City, if the City so chooses. 15. Applicable Law; Venue; Attorney's Fees. This Agreement shall be subject to, and the Consultant shall at all times comply with, all applicable federal, state and local laws, regulations, and rules, including the provisions of the City of Tukwila Municipal Code and ordinances of the City of Tukwila. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. Venue for any action arising from or related to this Agreement shall be exclusively in King County Superior Court. 16. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 17. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188 Notices to Consultant shall be sent to the following address: 18. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Consultant and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. CA revised May 2020 90 Page 4 DATED this day of , 20 ** City signatures to be obtained by ** Consultant signature to be obtained by City Clerk's Staff ONLY. ** sponsor staff. ** CITY OF TUKWILA Allan Ekberg, Mayor ATTEST/AUTHENTICATED: Christy O'Flaherty, City Clerk APPROVED AS TO FORM: Office of the City Attorney CONSULTANT: By: Printed Name: Title: CA revised May 2020 Page 5 91 Exhibit A: Scope of Services & Budget Community Center Business Plan (Task 1 - Project Overview and Management A. Kick-off Meeting and Project Management $ 4,120 B. Review Existing Information and Reports $ 1,860 C. Identify Constraints and Parameters $ 1,40U Subtotal Dollars $ 7,380 Task 2 • Market Analysis, Financial Review, and Space Utilization Analysis A. Demographic Analysis 5 1,250 B. Alternative Provide Market Analysis $ 3,000 C. Trend Analysis and Market Segmentation Determination $ 1,000 D. Review of Existing Programs and Services & Space Utilization Analysis $ 3,960 E. Financial Review 5 2,640 Subtotal Dollars $ 11,850 Task 3 • Community Input / Needs Assessment A. Stakeholder Interviews and Focus Groups 5 4,400 B. Online Survey $ 1,500 Subtotal Dollars 5 5,900 Task 4 • Program Identification A. Visioning and Core Program 5 3,050 B. Capital Improvements $ 2,720 Subtotal Dollars $ 5,770 Task 5 • Operational Plan and Financial Pro Forma A. Establish Operating Standards and Revised Organizational Chart $ 2,060 B. Marketing Recommendations $ 2,640 C. Cost Recovery Model $ 3,300 D. Financial Pro Forma $ 3,960 Subtotal Dollars 5 11,960 Task 6 • Briefings and Final Report Development A. Draft Report 5 2,560 B. Presentation of Findings and Recommendations $ 4,400 C. Fina I Report Production $ 3,880 Subtotal Dollars $ 10,840 Community Center Business Plan Total $ 53,700 Recreation Program Plan Task 1- Project Management, SWOT Analysis, Demographic & Recreation Trends Analy A. Kick-off Meeting, Tour, and Project Management 5 4,760 B. SWOT Analysis 5 2,160 C. Demographic and Trends Analysis $ 1,250 Subtotal Dollars $ 8,170 Task 2 - Community Engagement Process A. Key Leadership/Focus Group Interviews $ 4,940 B. Online Survey $ 1,500 5ubtotal Dollars $ 6,440 Task 3 - Program Analysis A. Program and Services Assessment $ 7,750 B. Gap Analysis & Mapping $ 4,700 C. Evaluation of Programmable Facilities $ 2,720 D. Prioritized Program Priority Rankings 5 1,980 Subtotal Dollars $ 17,150 Task4 - Comprehensive Recreation Program Plan Implementation A. Strategic Action Plan $ 3,710 B. Draft Report Preparation and Briefings $ 5,475 C. Final Recreation Program Plan Preparation and Production $ 5,260 Subtotal Dollars 5 14,445 Recreation Program Plan Total $ 46,205 TOTAL DOLLARS $ 99,905 Optional Services Statistically Valid Survey 14,000 Social Pinpoint Website 5 5,500 CA revised May 2020 92 Page 6 Exhibit B: Payment Consultant shall invoice the City at regular intervals detailing the hours worked toward each deliverable within the scope during the given invoice period. Payment shall not be made until the invoice is received in writing and approved for payment by the Parks & Recreation Director and/or their designee. Final payment on this agreement shall not be provided until the Parks & Recreation Director and/or their designee approves the produced reports and/or plans in final draft form Consultant shall provide an up-to-date IRS Form W-9 to the City for purposes of proper payment of invoices and tax reporting. CA revised May 2020 Page 7 93 94 City of Tukwila City Council Community Services & Safety Committee Meeting Minutes November 13, 2023-5:30 p.m. Councilmembers Present: Staff Present: - Hybrid Meeting; Hazelnut Conference Room & MS Teams Mohamed Abdi; Thomas McLeod, Tosh Sharp David Cline, Pete Mayer, David Rosen, Kris Kelly, Jefri Peters Chair Abdi called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Contract: Tukwila Community Center Business Plan and Recreation Programming Staff is seeking Council approval of a contract with PROS consulting in the amount of $119,405 *to develop a Business Plan for the Tukwila Community Center and a Recreation Programming Plan for the department. Committee Recommendation: No recommendation. Forward to November 27, 2023 Committee of the Whole. B. Ordinance: Designation of Fire Chief and Fire Marshal Staff is seeking approval of an ordinance designating the offices of Fire Chief and Fire Marshal as provided by the Puget Sound Regional Fire Authority pursuant to the interlocal agreement. Committee Recommendation: Unanimous approval. Forward to November 20, 2023 Regular Consent Agenda. C. Amendment: Interlocal Agreement with Puget Sound Regional Fire Authority Staff is seeking Council approval of an amendment to the Interlocal Agreement with the Puget Sound Regional Fire Authority to extend certain provisions to December 31, 2024 Committee Recommendation: Unanimous approval. Forward to November 20, 2023 Regular Consent Agenda. II. MISCELLANEOUS The meeting adjourned at 6:04 p.m. A Committee Chair Approval Minutes by LH 95 96 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/27/23 AY ITEM INFORMATION ITEM NO. 4.E. STAFF SPONSOR: PETE MAYER ORIGINAL AGENDA DATE: 11/27/23 AGENDA ITEM TITLE An update on the encampment at the Riverton Park United Methodist Church CATEGORY ❑ Discussion Mtg Date 11/27/23 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Altg Date SPONSOR ❑ Council ® Mayor ❑ Admin Svcs ❑ DCD Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY Staff is presenting an update on the asylee encampment at the RPUMC (Riverton Park United Methodist Church) REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/23 MTG. DATE ATTACHMENTS 11/27/23 No attachments 97 98 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/27/23 LH ITEM INFORMATION ITEM NO. 4.F. STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 11/27/23 AGENDA ITEM TITLE Ordinance clarifying noise regulations CATEGORY ® Discussion Mfg Date 11/27/23 ❑ Motion Mtg Date ❑ Resolution Mtg Date ® Ordinance Mtg Date 11/27/23 ❑ 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 The City Council is asked to review a draft ordinance clarifying noise regulations as codified at Tukwila Municipal Code Chapter 8.22. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/23 MTG. DATE ATTACHMENTS 11/27/23 Informational memo with attachments Draft ordinance 99 100 City of Tukwila Allan Ekberg, Mayor MEMORANDUM TO: City Council FROM: Nora Gierloff, DCD Director Kari Sand, City Attorney CC: Allan Ekberg, Mayor David Cline, City Administrator Mark Hafs, Public Works EIS Project Director DATE: November 21, 2023 SUBJECT: Noise Ordinance History and Proposed Ordinance Recommendation ISSUE The intent is to follow up on prior discussions and propose noise control ordinance amendments that better align Tukwila's code with the noise control codes of other cities. BACKGROUND In 2010, the Department of Community Development and the Police Department jointly developed a new noise ordinance, codified in TMC chapter 8.22 ("Noise Code"). One of the motivations was to provide the Police with an avenue to address noise disturbances without the use of a decibel meter, something not generally available to patrol officers. The new Noise Code language provided two enforcement approaches, see TMC 8.22.050 in Attachment A. One approach continued the prior use of a decibel level table, which requires the use of sound measuring devices and was intended for ongoing commercial operations and noise created by equipment such as HVAC units, generators, and trash compactors. These routine, recurring noise sources would be required to install permanent noise mitigation measures that would bring the noise below the allowed levels in the table. The second approach was to include a new "plainly audible" standard that would use the hearing and judgment of a code enforcement or police officer and was intended to allow enforcement of sporadic noise created by activities such as loud parties, power equipment, or car audio systems. These types of noises would be mitigated by stopping the activity or turning down the amplification of audio systems. Despite the legislative intent for the two different approaches to be applied to distinctly different types of noise, the Noise Code language makes no clear distinction for the different types of noise and allows either enforcement approach to be used, see Attachment A. There is no limitation in the Noise Code about which approach is appropriate for which circumstance. A Tukwila resident, Greg Sherlock, continues to express that the plainly audible standard, rather than the decibel level table, should be applied to his ongoing complaint about noise from the Sabey Intergate East data center. Staff provided a briefing on the history of this issue to the Council on August 15, 2022, and Council's direction was to continue to prioritize work to resolve the noise complaint while also asking the PCD Committee to consider amendments to the ordinance at a future time, see timeline below. 101 INFORMATIONAL MEMO Page 2 Mr. Sherlock and representatives from the Sabey Corporation met with the King County Dispute Resolution Center in November 2023 and had follow-up discussions, yet the noise issue remains unresolved. DISCUSSION On July 28, 2023, the Mayor and City Council President sent a joint letter to Mr. Sherlock (Attachment C) asking that he participate in a noise study to identify and correct the noise at the source of his complaints. While some discussions took place no agreement was reached. In September 2023, the City began the process of hiring an acoustical consultant to study the effects of noise on Mr. Sherlock's property and identify measures to reduce those effects. Staff reached out to local consultants who are qualified to conduct such a noise study and found several who had not worked with either the City or Sabey Corporation. We asked Mark Hafs from Public Works to lead the project, as Mr. Hafs has experience with noise studies, which are often part of Environmental Impact Statements (EIS) studies, similar to the one he is leading for the Truck reroute project EIS in Allentown. Based on this experience, we suggest the following approach: • Rewrite the City's noise ordinance to distinguish sporadic nuisance noise from routine, recurring noise sources (such as those generated by the Sabey Intergate East data center) and provide a greater level of detail about how sporadic nuisance noise should be regulated and resolved. • Using the rewritten code as a starting point, restart talks with Mr. Sherlock as a good -faith effort to reach a solution to his noise concerns. Include the services of a noise consultant as needed to help understand — in the context of the rewritten ordinance - how Mr. Sherlock's property is being affected by noise from the Sabey data center and identify methods for reducing the effects of that noise. FINANCIAL IMPACT The City plans to conduct an independent noise study utilizing the new noise ordinance. RECOMMENDATION Amend the noise ordinance as shown in Attachment B to clarify the different regulation and treatment of sporadic nuisance noise. Codifying the legislative intent that the plainly audible standard is to be used for "in the moment" enforcement of short-term events while the decibel level table is appropriate for ongoing or reoccurring noise generation by equipment or commercial activity would provide clarity for Code Enforcement, Police Officers, and the community at large. In addition, the proposal is to delete the definition of noise sensitive unit in TMC 18.22.020. The only place this term was used was for nighttime noise received by residences, schools, religious institutions, libraries, and hospitals. In Tukwila, few of those institutional uses operate during nighttime hours anyway. Sporadic noise within residential zones will continue to be subject to TMC 8.22.050.3.b, which will limit plainly audible nuisance noises at all times of the day and night. In all zones plainly audible sporadic noise from motor vehicles and commercial music will continue to be unlawful. Residential uses in commercial or mixed -use zones will continue to have the protection of the decibel table against unwanted noise. 102 INFORMATIONAL MEMO Page 3 Future Possible Actions November/December 2023 — City Council could review and adopt more streamlined and defensible noise ordinance City Work Plan Item for 2024 — City could conduct independent third -party noise study under revised noise ordinance to ensure compliance to clear standard. ATTACHMENTS A. TMC 8.22.050 Maximum Permissible Sound Levels (section of current code) (Note: The maximum permissible sound levels codified in TMC 8.22.050 are consistent with those adopted in state law. See WAC 173-60-040.) B. Proposed Draft Ordinance C. July 28, 2023 Letter to Mr. Sherlock from the City Council and Mayor's Office D. Comparable noise control regulations E. Kitsap Sun newspaper article, dated February 9, 2020 103 104 Attachment A — Section of Existing Code TMC 8.22.050 Maximum Permissible Sound Levels It is a violation to produce sound in excess of the permissible sound levels established by this chapter. 1. No person may produce or permit to be produced sound that exceeds the following maximum permissible sound levels when measured at or within the boundary of a receiving property: District of Sound Producing Source District of Receiving Property Residential Daytime Residential, Nighttime Commercial industrial Residential 55 dB(A) 45 dB(A) 57 dB(A) 60 dB(A) Commercial 57 dB(A) 47 dB(A) 60 dB(A) 65 dB(A) Industrial 60 dB(AI 50 dB(A) 65 dB(A) 70 dB(A) 2. At any hour of the day or night, the applicable noise limitations above may be exceeded for any receiving property by no more than: a. 5 dB(A) for a total of 15 minutes in any one -hour period; b. 10 dB(A) for a total of 5 minutes in any one -hour period; or c. 15dB(A) for a total of 1.5 minutes in any one -hour period. 3. The following also exceeds the maximum permissible sound levels: a. In all districts of the City, no sound from a sound -producing source is permitted that is: 1) plainly audible from a motor vehicle sound system at a distance of at least 50 feet from the vehicle itself; or 2) plainly audible commercial music at a distance of at least 50 feet from the property line of the commercial establishment; or 3) plainly audible during nighttime hours from within a noise -sensitive unit of the receiving property; and b. When the receiving property is in a residential district, no sound from a sound - producing source is permitted that is plainly audible at a distance of at least 50 feet from the exterior of a sound -producing source, including sounds created by any motor vehicle operated off public highways. (Ord. 2293 §6, 2010) 105 106 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2293 §2, §3, §5, AND §6, AS CODIFIED AT TUKWILA MUNICIPAL CODE (TMC) CHAPTER 8.22, "NOISE," TO CLARIFY NOISE REGULATIONS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City has adopted Tukwila Municipal Code ("TMC") Chapter 8.22 — Noise to regulate the impacts of noise on the public health, safety and welfare; and WHEREAS, the City intends to address the legitimate public concern of noise pollution in a thoughtful and targeted manner; and WHEREAS, the legislative intent of the adoption of TMC Chapter 8.22 was to have two different approaches to regulate ongoing verses sporadic nuisance noise; and WHEREAS, despite this legislative intent, TMC Chapter 8.22 makes no clear distinction for the different types of noise and allows either enforcement approach to be used; and WHEREAS, the City Council desires to amend TMC Chapter 8.22 to clarify the different regulation, treatment, and enforcement of different noise types; and WHEREAS, the City Council finds that the amendments set forth herein are in the interest of the public's health, safety and welfare; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Adoption of Findings of Fact. The City Council hereby adopts the foregoing recitals and incorporates them herein as support for these amendments. Section 2. TMC Section 8.22.010 Amended. Ordinance No. 2293 §2, as codified at Tukwila Municipal Code (TMC) Section 8.22.010, "Purpose," is hereby amended to read as follows: CC:\Legislative Development\Clarify Noise Code 11-21-23 K. Sand Page 1 of 4 107 8.22.010 Purim wTpvsePolicy and Application and welfare of the general public, and not to create or otherwisc establish or dcsignato any particular class or group of persons who will or should be especially protected or benefited by the terms of this chapter. A. It is the policy of the City to minimize the exposure of citizens to the physiological and psychological effects of excessive noise and to protect, promote and preserve the public health, safety and welfare. It is the express intent of the City to control the level of noise in a manner which promotes commerce; the use, value and enjoyment of property; sleep and repose; and the quality of the environment. B. The following environments have been identified and approaches adopted: 1. Use of Property. The different zoning districts of the City establish lawful uses which can be anticipated to produce noise at certain reasonable levels associated with these uses. The provisions of TMC Section 8.22.050 utilize thresholds consistent with those set forth in Chapter 70A.20 RCW entitled "Noise Control" and Chapter 173-60 WAC entitled "Maximum Environmental Noise Levels." Regulation of noise due to the use of property for commercial and industrial purposes or operation of fixed equipment in any zone is appropriate for the use of noise measuring devices and a decibel -based approach. Properly trained and certified City staff or a certified consultant trained in the field of sound level measurement can be utilized in these situations when warranted. 2. Sporadic noise that is loud and raucous, such as noise due to social gatherings, car repair, landscape maintenance, or amplified music, and noise generated for the purpose of annoyance, is more episodic in nature and subject to the plainly audible standard. The provisions of TMC Section 8.22.050(3) are aimed at those situations that are difficult or impossible to address through measurement pursuant to TMC Sections 8.22.050(1) and (2). In administering and enforcing the provisions of this chapter, the City desires to coordinate the application of these two (2) approaches. 3. Similarly, public uses of the rights -of -way, such as parades, and First Amendment speech such as a lawful demonstration should be differentiated from pure commercial speech. Pure commercial speech has been defined by the U.S. Supreme Court as speech "which does no more than propose a commercial transaction." Such speech while protected is susceptible of regulation; provided, that the City address the legitimate public concern of noise pollution in a thoughtful and targeted manner. The content of the speech shall not be considered against any person in determining a violation of this Chapter. 4. Finally, the City recognizes that the use of bells, chimes, carillons, and drums may constitute a call to worship and accordingly such a use is protected as religious speech under the First Amendment. These noises are appropriate when limited by reasonable time, place and manner restrictions. Section 3. Repealer. Ordinance No. 2293 §3, as codified at Tukwila Municipal Code (TMC) Section 8.22.020, "Definitions," subparagraph 17, is hereby repealed, thereby eliminating this subparagraph and renumbering the list in this section: CC:\Legislative Development\Clarify Noise Code 11-21-23 K. Sand Page 2 of 4 108 17. "Noise sensitive unit" means real property used as a residence, school, Section 4. TMC Section 8.22.040 Amended. Ordinance No. 2293 §5, as codified at Tukwila Municipal Code (TMC) Section 8.22.040, "Measurement of Sound," is hereby amended to read as follows: 8.22.040 Measurement of Sound A. The use of a sound level meter is not required to verify a plainly audible noise complaint for sporadic noisevielatien. B. If the measurement of sound is made with a sound level meter, it shall be an instrument in good operating condition and shall meet the requirement for a Type I or Type II instrument, as described in American National Standards Institute Specifications, ANSI S1.4-1983. If the measurements are made with other instruments or assemblages of instruments, the procedure must be carried out in such a manner that the overall accuracy shall be at least that called for in ANSI S1.4-1983 for Type II instruments. Section 5. TMC Section 8.22.050 Amended. Ordinance No. 2293 §6, as codified at Tukwila Municipal Code (TMC) Section 8.22.050, "Maximum Permissible Sound Levels," is hereby amended to read as follows: 8.22.050 Maximum Permissible Sound Levels It is a violation to produce sound in excess of the permissible sound levels established by this chapter. 1. No person may produce or permit to be produced sound that exceeds the following maximum permissible sound levels when measured at or within the boundary of a receiving property: District of Sound Producing Source District of Receiving Property Residential Daytime Residential, Nighttime Commercial Industrial Residential 55 dB(A) 45 dB(A) 57 dB(A) 60 dB(A) Commercial 57 dB(A) 47 dB(A) 60 dB(A) 65 dB(A) Industrial 60 dB(A) 50 dB(A) 65 dB(A) 70 dB(A) 2. At any hour of the day or night, the applicable noise limitations above may be exceeded for any receiving property by no more than: a. 5 dB(A) for a total of 15 minutes in any one -hour period; b. 10 dB(A) for a total of 5 minutes in any one -hour period; or c. 15dB(A) for a total of 1.5 minutes in any one -hour period. 3. The following sporadic noise also exceeds the maximum permissible sound levels and is not permitted: CC:\Legislative Development\Clarify Noise Code 11-21-23 K. Sand Page 3 of 4 109 a. In all districts of the City, no sound from a sound -producing source is permitted that is: 1) plainly audible from a motor vehicle sound system at a distance of at least 50 feet from the vehicle itself; or 2) plainly audible commercial music at a distance of at least 50 feet from the property line of the commercial establishments. 3) plainly audible during nighttime hours from within a noise sensitive unit of the receiving property• and e b. When the receiving property is in a residential district, no sound from a sound- producing source is permitted that is plainly audible at a distance of at least 50 feet from the exterior of a sound -producing source, including sounds created by any motor vehicle operated off public highways. 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 scrivener's 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 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 , 2023. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Allan Ekberg, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Office of the City Attorney CC:\Legislative Development\Clarify Noise Code 11-21-23 K. Sand Ordinance Number: Page 4 of 4 110 Attachment C - July 28, 2023 Letter City of Tukwila Allan Ekberg, Mayor Mayor's Office - David Cline, City Administrator July 28, 2023 Sent via email to pacific12435@yahoo.com Greg Sherlock 12435 Tukwila International Blvd Tukwila WA 98168 Re: Sabey Data Center Noise Complaints Hello Mr. Sherlock, We are interested in addressing your ongoing noise concerns through a sound study conducted by an independent, qualified third -party consultant, hopefully with your support and within your home. The sound study is necessary to establish a baseline against which to capture and track the effectiveness of any noise mitigation measures taken to ensure a noise reduction occurs. As the sound study is conducted, we will engage with the Sabey Corporation to explore steps towards mitigation as they have expressed their willingness and cooperation to resolve the matter. The results of the noise study will be used to identify effective noise mitigation measures, which are intended to reduce noise in and around your property and other adjacent residential areas. As it's been a few weeks since the Council's letter, again we would like to express our interest in knowing if you are willing to participate with us in the noise study. Sincerely, Allan Ekberg Mayor Cynthia Delostrinos Johnson Council President Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 111 112 Attachment D — Comparable Noise Control Regulations Renton - Chapter 7 Noise Level Regulation Renton utilizes a similar two -prong approach to noise regulation: For maximum environmental noise levels, Renton adopted WAC 173-60-20 through 173- 60-90, which include the same decibel chart included in Tukwila's code. For public disturbance noises, Renton does not require a decibel reading, but prohibits "unreasonable noise that disturbs another." o Renton prohibits sounds from motor vehicles that interfere with conversation or cause vibrations to be felt from a distance of 75 feet. Kent - Chapter 8.05 Noise Control Kent also utilizes the two -prong approach: 8.05.090: Maximum permissible environmental noise levels — this section uses the same decibel chart taken from the WACs referenced above. The decibel levels are measures by a sound level meter from the receiving property. 8.05.180 — Public nuisance noises prohibited — this section is vaguer than Renton or Tukwila's public disturbance rules. It allows community members to file complaints for any noise that "annoys, injures, interferes with or endangers the comfort, repose, health or safety of an entire neighborhood or community." There is no radius for the public nuisance rule. Burien - Chapter 9.105 Public Peace, Crimes Relating to Burien prohibits "public disturbance noises," but does not maintain a rule on environmental noise levels: 9.105.410: Public disturbance noise prohibited — this section provides a list of public disturbance noises, such as yelling, audio systems, motor vehicles, etc. This section prohibits noises emanating from audio equipment or motor vehicles that are audible from greater than 50 feet from the source. Bellevue - Chapter 9.18 Noise Control Bellevue uses the two -prong approach: 9.18.030: Maximum permissible environmental noise levels — this section uses the same decibel level chart taken from the WACs referenced above. The decibel levels are measures by a sound level meter from the receiving property. 9.18.040: Noise disturbances — this section contains a list of noise disturbances including playing of audio equipment, human voice, construction, any sound amplification, etc. o Bellevue's noise disturbance section uses a 75-foot radius for any noise disturbance, not limited to motor vehicle/audio equipment noise. Kenmore - Chapter 8.05 Noise Kenmore uses the two -prong approach: 8.05.015: Maximum permissible environmental noise levels — this section adopts the decibel level chart contained in WAC 173-60-040. 8.05.025: Public nuisance and disturbance noises — this section contains a list of public nuisance noises that is very similar to those referenced above. 113 o Kenmore prohibits noises emanating from motor vehicles or audio equipment than is audible greater than 75 feet from the source. 114 Attachment E — KITSAP SUN article, dated February 9, 2020 Brother Don's: Kitsap County judge rules Bremerton's noise ordinance unconstitutional Christian Vosler Kitsap Sun Feb 9, 2020 BREMERTON — The music will play on at two Kitsap Way bars involved in a noise dispute with neighbors after a Kitsap County District Court judge ruled a section of Bremerton's noise ordinance unconstitutional. In an 82-page decision, Judge Jeffrey Jahns ruled that a provision in Bremerton's noise ordinance used to cite both Brother Don's Bar & Grill and the Dugout Sports Bar & Grill for noise violations is unenforceable because it infringes on freedom of speech and is "unconstitutionally vague." Neighbors living near Brother Don's and the Dugout have called police over 100 times since 2018, alleging that the noise from live music at both locations was too loud and keeping them awake at night. Those hundreds of calls resulted in a total of six noise violations between the two bars — five for Brother Don's and one for the Dugout. Brother Don's owner Gordon Rinke fought to have the citations dismissed in court. Rinke's lawyer, former city attorney Bill Broughton, argued that the noise ordinance was too vague and relied on the subjective opinions of officers that responded to the calls. Jahns agreed in his decision, ruling that the "catch-all" provision for loud noises in Bremerton's code violates the First and Fourteenth Amendments. The code "does not provide adequate notice of what speech is prohibited and authorizes arbitrary and discriminatory enforcement," Jahns wrote. Broughton called the decision "incredibly compelling" and said he hoped the city would focus on a solution instead of appealing. "Here we have a couple of hundred times the police have had to respond to these complaints, it's just a tremendous waste of resources," Broughton said. City staff needs to analyze the ruling completely before any decision about an appeal is made, city attorney Roger Lubovich said. "We're reviewing it right now, it's obviously very complicated with an 80-page document," Lubovich said. Noise ordinance ruled 'standardless' Bremerton's noise ordinance breaks its regulations into two categories: "environmental noise," which has a maximum decibel limit for noise based on how an area is zoned; and "public disturbance noises," which are considered a public nuisance and don't require decibel readings. Examples of "public disturbance noises" include repetitive car horn honking, noises made by the starting or repair of vehicle engines, or loud sound systems in cars. The part of the code that officers used to cite Rinke and others outlaws the "creation of any loud noises which emanate frequently, or repetitively or continuously from any building, structure or property which unreasonably disturbs the peace, comfort and repose of others." Sounds produced by "bells, chimes, or carillons" are exempt from the noise ordinance, an issue Jahns highlighted in his ruling. The decision found Bremerton's ordinance is unconstitutional 115 because it discriminates against types of music — considered protected free speech under the First Amendment — created using other instruments or vocals. "The city favors certain loud music it chooses not to regulate while regulating other loud music the city disfavors," Jahns wrote. Jahns found the same part of Bremerton's noise ordinance "unconstitutionally vague." Music like the kind played at Brother Don's and the Dugout is allowed under one part of Bremerton's ordinance if it doesn't exceed the decibel levels listed — but could be illegal under another section if someone believes it "unreasonably disturbs" them. The code could "trap" an innocent person because it fails "to give notice to a possible offender of when music is unlawful because it is too loud to the person complaining about the volume," Jahns wrote. BPD officers who responded to noise complaints at Brother Don's testified at a bench trial in January. None of the officers who testified had received training in noise enforcement or equipment, Jahns wrote, and officers' methods of deciding if the music was too loud or not varied widely. Using equipment that measures noise levels isn't required under city code, however, officers can cite a business for noise violation if they can hear the sound 50 feet or more from its source. Jahns wrote that that subjectivity makes the ordinance "standardless." "A law which in one section authorizes speech up to a certain noise volume while giving unbridled discretion to declare the same volume of speech unlawful in another section based on one person's or one officer's subjective belief the speech is too loud does precisely which the Fourteenth Amendment prohibits," Jahns wrote. What does this mean for the city's noise ordinance? Jahns' ruling poses a bigger question for the Bremerton City Council, which has been planning to review the city's noise ordinance in its entirety. Council President Eric Younger said the council was waiting for Jahns' decision before moving forward with any changes. The decision only affects a subsection of the ordinance, not the entire chapter. But if the city doesn't decide to appeal, it will be up to the council to approve changes that abide by Jahns' ruling. That process could reveal some trickier questions. "We have to analyze and see what needs to happen, it might just be removing the section or it could be a major revamping of the code," Lubovich said. The city attorney said he couldn't recall another time that a city ordinance has been ruled unconstitutional. City staff is reviewing the decision and talking with law enforcement to see how to proceed. "We're going to address it as soon as possible," Younger said. Rinke, who spent about $17,000 on noise dampening renovations and equipment for the bar, said he was happy about the decision. He has changed the times when music plays at the bar to help accommodate the neighbors, which has hurt his business. Even with the decision, Rinke isn't sure he'll go back to playing music late at night right away. "I think financially it would be beneficial to me to change the hours maybe, but it's just something we need to give some thought to," Rinke said. 116 The complainants in the case did not testify during trial and did not respond to requests for comment from the Kitsap Sun. "I do feel that they just didn't do it out of spite, there was a problem, but I tried to do what I could to correct the problem," Rinke said. 117 118 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/27/23 LH 12/4/23 LH ITEM INFORMATION ITEM NO. 4.G. STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 11/27/23 AGENDA ITEM TITLE 2024 State Legislative Agenda CATEGORY ® Discussion Mtg Date 11/27/23 ❑ Motion Mtg Date ® Resolution Mtg Date 12/4/23 ❑ Ordinance Altg 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 The City Council is asked to review and approve a state legislative agenda for 2024. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/23 12/4/23 MTG. DATE ATTACHMENTS 11/27/23 Informational Memorandum Draft Resolution and Legislative Agenda 12/4/23 119 120 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Laurel Humphrey, Legislative Analyst DATE: November 17, 2023 SUBJECT: 2024 Legislative Agenda ISSUE The City of Tukwila develops an annual legislative agenda for use in Olympia during the Washington State legislative session. BACKGROUND The Washington State Legislature is a bicameral body with 49 members in the Senate and 98 members in the House of Representatives. Each district is served by one Senator and two House members. The Washington State Legislature will convene on January 8, 2024 for a 60-day session. 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 during the session. The South King Housing and Homelessness Partners Executive Board, on which Council President Delostrinos Johnson serves, has requested that member cities adopt specific language around housing. That language is included in the first bullet under "Housing and Human Services." RECOMMENDATION Staff is seeking Council input and final approval of the 2024 State Legislative Agenda. ATTACHMENTS Draft resolution Legislative Agenda 121 122 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A LEGISLATIVE AGENDA FOR USE DURING THE 2024 WASHINGTON STATE LEGISLATIVE SESSION. WHEREAS, the Washington State Legislature will convene for its regular session on Monday, January 8, 2024, and the City Council agrees to pursue certain legislative issues; 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 recognizes this agenda is not all encompassing, in that certain additional items may arise during the legislative session that require support or opposition; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: The Tukwila City Council has identified priorities for the 2024 Washington State Legislative Session that provide a framework for advocacy on behalf of the community. The City of Tukwila 2024 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 , 2023. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC Cynthia Delostrinos Johnson City Clerk Council President APPROVED AS TO FORM BY: Office of the City Attorney Attachment A: City of Tukwila 2024 Legislative Agenda Filed with the City Clerk: Passed by the City Council: Resolution Number: CC:\Legislative Development\Legislative Agenda for 2024 11-20-23 L. Humphrey Page 1 of 1 123 124 ATTACHMENT A City of Tukwila 2024 Legislative Agenda Transportation & Infrastructure • Create stable, reliable infrastructure assistance funding for cities to assist in repairing roads, bridges and other public infrastructure that support economic development and community resiliency. • Honor funding commitments made in Move Ahead Washington. Housing & Human Services • Address the housing stability crisis by addressing all aspects of affordable housing, including homeownership for moderate income households and below, preservation of naturally occurring affordable housing, land acquisition to secure permanent affordability, permanent supportive housing, infrastructure around affordable housing developments, and workforce housing. • 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. • Adequately fund services to support asylum seekers, refugees and immigrants residing in Washington cities. Advancing Equity • 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. Law Enforcement • Further clarify the ability for law enforcement to conduct vehicle pursuits providing law enforcement with discretion to engage in pursuits. • Expand funding for co -responding mental health professionals to assist individuals experiencing behavioral health challenges. 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. 125 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. 126 UPCOMING MEETINGS AND EVENTS NOVEMBER - DECEMBER 2023 City Council meetings and Council Committee meetings will be conducted in a hybrid model, with in -person and virtual attendance available. NOV 27 MON NOV 28 TUE NOV 29 WED NOV 30 THU DEC 1 FRI DEC 2 SAT ➢ Community Services and Safety Committee 5:30 PM City Hall - Hazelnut Room Hybrid Meeting ➢ Finance and Governance Committee 5:30 PM 6300 Building - Suite 100 Foster Conference Room Hybrid Meeting ➢ City Council Committee of the Whole Meeting 7:00 PM City Hall Council Chambers Hybrid Meeting Special Meeting to follow Committee of the Whole Meeting. ➢ Arts Commission 6:00 PM Hybrid Meeting Give Blood = Save 3 Lives DONATE BLOOD AND ENTER TO WIN 2 VIP TICKETS PLUS MEET & GREET WITH MACKLEMORE BY TODAY! It takes 1,000 donors a day to sustain a blood supply for patients in our community. Click here to schedule an appointment. Or call 1-800-398-7888. `� SPIRIT ef� GIVING Givea Little, Helpa Lot Tukwila Parks & Recreation and Rotary Club of SeaTac- Tukwila are collecting donations to help approximately 400 Tukwila children in need. Donations due today Click here for information. GREEN:TUKWILA HEAL OUR HABITAT AT CODIGA PARK Join City of Tukwila and EarthCorps as we continue work in the natural area on the Duwamish River. Gloves, tools, water and snack bars will be provided. 10:00 AM-1:00 PM Codiga Park 12535 50th PI S Click here to register. DEC 4 MON DEC 5 TUE DEC 6 WED DEC 7 THU DEC 8 FRI DEC 9 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 - 2"d Floor Duwamish Conference Room Hybrid Meeting ➢ City Council Regular Meeting 7:00 PM City Hall Council Chambers Hybrid Meeting ➢ Library Advisory Board 6:30 PM Hybrid Meeting Public Health La ➢Equity and Social Justice Commission 5:30 PM Hybrid Meeting . ,9oe 12 DAYS OF GOODNESS Free event for veterans in Tukwila ages 50 and older. Seahawks legends and coaches will join us. 11:00 AM - 2:00 PM Tukwila Community Center 12424 42" Ave S Click here to register. 2§% SPIRIT _ GI IV NG DAY OF GIVING Open to regitered participants only. 9:00 AM -12:00 PM Tukwila CommunityCenter 12424 42ntl Ave S Seattle & King County KING COUNTY EMERGENCY MEDICAL TECHNICIAN TRAINING & RECRUITMENT Apply to be considered for the February 2024 class program. This is a free 12- week EMT course for individuals who excel at working in diverse communities. Upon completion of the program, a path to obtaining certification and a career will be provided. Applications due Dec 15 Click here for information. RING COUNTY DIVERSITY AND RECRUITMENT WORKSHOP Will be discussing the ins and outs of written exams, physical and mental wellness, oral boards, medical and psychologicalexams and moreeThis at least workshop 6is open to everyoneyears of age. Breakfast and lunch will be provided. 8:00 AM - 3:30 PM Shoreline Location Sign-up by Dec 10 Click here for information. Open enrollment for health insurance starts Nov 1, and now everyone in WA State can purchase health and dental insurance regardless 9 of immigration status. Click here for information. CITY HALL & 6300 BUILDINGS ARE OPEN TO THE PUBLIC MONDAYS, WEDNESDAYS & THURSDAYS 8:30 AM - 4:00 PM NEIGHBORHOOD WATCH GROUP HELP Police Community Engagement Coordinator can help to create a neighborhood watch group in your neighborhood and apartments. Click here to email Brooke Lamothe. FREE CRIME PREVENTION SURVEY FOR BUSINESSES TO ENHANCE SECURITY Police Community Engagement Coordinator will visit your business to conduct a security assessment and recommend making your business more secure. Allow up to 2 weeks for an appointment date confirmation. Click here to make an appointment. FOOD BANK OPENS: TUESDAYS, THURSDAYS AND SATURDAYS 10:00 AM - 2:30 PM 3118 S 140TH ST, TUKWILA T:.hu.'i:ea, VOLUNTEERS - In need of volunteers for food packaging or food distributions. To volunteer, click here to sign up. Per+a't-v- DONORS - Please donate at tukwilapantry.org/please-donate/. Donations can be dropped off on Tuesday -Saturday from 8 AM -11 AM or by appointment. Click here for a current list of items in need. STILL WATERS SNACK PACK NEEDS YOUR DONATIONS AND VOLUNTEER HELP! SnackPack distributes food bags on Fridays to Tukwila students in need. Click here for the Snack Pack list. el) VOLUNTEERS NEEDED ON WEDNESDAYS. Pack snacks every Wednesday at 9:30 AM._' To volunteer, email Stillwatersfamilyservices@gmail.com. To deliver food, click here to register with Tukwila School District. 'k 0 0 '-- p y1 Please donate to feed our Tukwila kids. Click here to donate online or mail checks to Still Waters, PO Box 88984, Tukwila WA 98138. RecolO RTUKWILA SOLID WASTE SERVICE STARTS ON NOV 1 WITH RECOLOGY ,i If you have any outstanding questions regarding your solid waste service change, the Recology customer service team will be happy to assist you. Call customer service at 206-944-3900 or email Tukwila@Recology.com. If your trash has not been picked up, then please contact Colleen Minion, City of Tukwila Solid Waste Analyst, at 206-431-2445. �y City of Tukwila provides 50% discount to eligible residents. Click here for information and to apply online. ® LEM FREE ONLINE TUTORING AND HOMEWORK HELP FOR GRADES K THRU 12 Use a computer, tablet, smartphone or home phone to connect with tutors by phone or on Zoom. Click here for information. LIBRARY FUN ACTIVITIES AND OTHER EVENTS AT TUKWILA LIBRARY SYSTEM Tukwila Library offers many resources and services. Click here for information. STREAM MOVIES FOR FREE! Use your KCLS library card to stream thousands of movies for free! Watch indie films, world cinema, documentaries and more on Kanopy. Sign in with your library card to start watching. Click here for more information. 127 Tentative Agenda Schedule MEETING 1 — REGULAR MEETING 2 — C.O.W. MEETING 3 — REGULAR MEETING 4 — C.O.W. NOVEMBER 6 See below link for the agenda packet to view the agenda items: November 6, 2023 Regular Meeting NOVEMBER 13 See below link for the agenda packet to view the agenda items: November 13, 2023 Committee of the Whole / Special Meeting NOVEMBER 20 See below link for the agenda packet to view the agenda items: November 20, 2023 Regular Meeting NOVEMBER 27 See below link for the agenda packet to view the agenda items: November 27, 2023 Committee of the Whole / Special Meeting MEETING 1 — REGULAR MEETING 2 — C.O.W. MEETING 3 — REGULAR MEETING 4 — C.O.W. DECEMBER 4 CONSENT AGENDA - Authorize the Mayor to sign a contract with PROS Consulting Inc., for the Tukwila Community Center Business Plan & Recreation Programming Plan in the amount of $119,405.00. - An ordinance granting Valley View Sewer District a non-exclusive franchise to construct, maintain, operate, replace and repair a sewer system within public rights -of -way of the City of Tukwila, and fixing a time when the same shall become effective. - An ordinance amending Ordinance No. 2537 §4 and §7, as codified at Tukwila Municipal Code Chapter 2.35, "Lodging Tax Advisory Committee"; amending the number of members for the Lodging Tax Advisory Committee and date for submission of the annual report; providing for severability; and establishing an effective date. - Authorize the Mayor to sign Amendment to Contract #22-153 with Hopelink for outreach services for the Transportation Demand Management program, in the amount of $65,000.00. - Authorize the Mayor to sign a contract with Fehr and Peers for a local road safety plan in the amount of $249,705.00. - Authorize the Mayor to sign a contract with KPG Psomas for design services for the 65" Avenue South and Southcenter Boulevard Intersection Improvement Project, in the amount of $199,721.00. - Authorize the Mayor to sign a grant agreement with Washington State Office of Public Defense (WSOPD), in the amount of $75,000.00. - Authorize the Mayor to sign a contract with Environmental Systems Research Institute (ESRI) for GIS, in an amount not to exceed $62,536.00. - Authorize the Mayor to sign a contract with Auburn Mechanical for Police Department evidence temperature control for biological evidence preservation, in the amount of $48,629.00, plus tax (including contingency). PUBLIC HEARING An ordinance terminating a condition in Ordinance No. 1978 that the vacated portion of 35th avenue south remain open to pedestrian traffic; providing for severability; and establishing an effective date. UNFINISHED BUSINESS - An ordinance terminating a condition in Ordinance No. 1978 that the vacated portion of 35th avenue south remain open to pedestrian traffic; providing for severability; and establishing an effective date. - An ordinance amending Ordinance No. 2689 §11, §12, §13, §22, and §33, as codified in TMC Chapters 3.26 and 3.27; to adopt additional business and occupation tax deductions and exemptions; to establish additional administrative provisions; and to amend administrative provisions related to tax filing requirements and appeals; providing for severability; and establishing an effective date. - An ordinance establishing Tukwila Municipal Code Section 9.28.038, "Avoiding an Intersection"; providing for severability; and establishing an effective date. - Authorize the Mayor to sign a grant agreement with King County for the Best Starts for Kids Capital grant, in the amount of $500,000.00. - A resolution adopting a Legislative Agenda for use during the 2024 Washington State Legislative Session. DECEMBER 11 SPECIAL ISSUES Resolutions of Service Appreciation for: - Mayor Ekberg - Councilmember Hougardy - Councilmember Kruller - Councilmember Delostrinos Johnson. Special Meeting to follow Committee of the Whole meeting. CONSENT AGENDA - Resolutions of Service Appreciation for: - Mayor Ekberg - Councilmember Hougardy - Councilmember Kruller - Councilmember Delostrinos Johnson. - Award a bid and authorize the Mayor to sign a contract for the Green River Trail Connector Project in the amount of $1,300,000.00. - Authorize the Mayor to accept a grant from the Washington State Department of Commerce for the Growth Management Act Periodic Update (for Fiscal Year 2024), in the amount of $62.500.00. NEW BUSINESS A motion regarding potential property acquisition. DECEMBER 18 DECEMBER 25 3 y �� 4^ %1, City offices and community center closed. 128