HomeMy WebLinkAboutCOW 2003-07-14 COMPLETE AGENDA PACKETMonday, July 14, 2003; 7 p.m.
1. CALL TO ORDER PLEDGE OF ALLEGIANCE
2. SPECIAL
PRESENTATION
3. CITIZEN COMMENT/
CORRESPONDENCE
4. SPECIAL ISSUES
5. REPORTS
6. MISCELLANEOUS
7. EXECUTIVE SESSION
8. ADJOURNMENT
Tukwila City Council Agenda
COMMITTEE OF THE WHOLE
Steven M. Mullet, Mayor Councilmembers: Joe Duffie Dave Fenton
Rhonda Berry, Acting City Administrator Jim Haggerton Joan Hernandez
Pam Carter, Council President Pamela Linder Richard Simpson
1 2003 Treasures of Tukwila.
At this time, you are invited to comment on items not included on
this agenda. To comment on an item listed on this agenda, please save
your comments until the issue is presented for discussion.
a. Cascade Water Alliance update and Seattle Supply Contract.
b. Proposed ordinance setting the amount of future Council
compensation.
c. Proposed ordinance establishing Council operating procedures. Pg. 65
a. Mayor
b. City Council
Tukwila City Hall; Council Chambers
c. Staff
d. City Attorney
e. Intergovernmental
Pg.3
Pg. 5
Pg. 43
Tukwila City Hall is wheelchair accessible. Reasonable accommodations are available at public hearings with advance
notice by calling the City Clerk's office 206 -433- 1800 /TDD 206 248 -2933. This notice is available in alternate formats for
those with disabilities with advance notice and is also available at http: /www.ci.tukwila.wa.us.
Tukwila Council meetings are audio taped.
I Original Sponsor:
I Timeline:
Sponsor's Summary:
Meeting Dafe
7/14/03
Meeting Date
COUNCIL AGENDA SYNOPSIS
Initials
1 Meeting Date Prepared by 1 Mayor's review( Council review 1
7/14/03 LL 1 A 1 e.
I 1 I I
I I I I
I I I I
I ITEM INFORMATION
CAS Number: 03-094 I Original Agenda Date: 7/14/03
Agenda Item Title: Announcing Treasures of Tukwila for 2003
Council x Admin. x
Treasures of Tukwila are those citizens in good standing in the community who have
made a substantial contribution to improve civic life. Additionally, the nominees
should affect a meaningful segment of the community in a positive and lasting way.
By their willingness to volunteer in a number of ways and to partake in a wide
variety of community events, Bob and Joanne McManus exemplify the best of
Tukwila. They have been chosen as the 2003 Treasures of Tukwila.
Recommendations:
Sponsor: Award Treasures ofTukwila award to McManuses
Committee:
Administration:
Cost Impact (if N/A
S
Fund Source (if known)
RECORD OF COUNCIL ACTION
Action
APPENDICES
Attachments
ITEM No.
1908
I CAS Number: 03-095
Agenda Item Title:
Original Sponsor:
Timeline:
Sponsor's Summary:
Recommendations:
Sponsor:
Committee:
Administration:
Cost Impact (if known):
Fund Source (if known):
1 Meeting Date
1 7/14/03
Meeting Date
7/14/03
COUNCIL AGENDA SYNOPSIS
Meeting Date
7/14/03
0 3 -0 95
Cascade Water Alliance Update Seattle Supply Contract
Council
Cascade Water Alliance recently completed contract negotiations to purchase a wholesale
block of water from the City of Seattle. A 50 -year declining block water supply agreement
will need approval by the City of Seattle and CWA members before the next CWA board
meeting in mid August. Cost impacts will be assembled and brought back later in July. Also,
DOE has approved the Lake Tapps water right and CWA will now proceed with PSE to
finalize settlement arrangements.
Forward to Committee of the Whole for review and direction.
Same as sponsor.
401 Water Fund
Attachments
Information Memo dated July 9, 2003 (revised after UC meeting)
Cascade Water Alliance Water Program Summary
50 -Year Declining Block Water Supply Agreement between City of Seattle CWA
Utilities Committee Meeting Minutes from July 8, 2003
Initials
Prepared by 1 Mayor's review 1 Council review
G4'L�_
E M INFORMATION
Original Agenda Date: July 14, 2003
Admin.
Action
ITEMNO.
Public Works
To: Mayor Mullet i
From: Public Works Directo
Date: July 9, 2003
Subject: Cascade Water Alliance Update Seattle Sunnly Contract
ISSUE
The Cascade Water Alliance (CWA) continues in their role of providing regional responsibility
and leadership to growing water demands and environmental issues. As part of establishing a base
supply of water for its members, CWA has recently completed contract negotiations to purchase a
wholesale block of water from the City of Seattle.
BACKGROUND
INFORMATION MEMO
Over the last three years, CWA and Seattle have been negotiating a "Water Supply Agreement" to
meet the needs of Cascade members while accommodating Seattle's concerns regarding a
wholesale block of water. Seattle had preferred a 50 -year contract. CWA staff members developed
a 50 -year contract and reached agreement with Seattle Public Utilities on provisions related to
block size and other items as outlined in the attached summary. Cost impacts will be assembled
shortly and brought back to Utilities Committee in July.
The next step in the process is to present this agreement to the legislative bodies of Cascade
Members and then the Seattle City Council. The Cascade Board is expected to take action on this
at the first Board meeting in August. The agreement would become effective for 2004. Staff
members from CWA would be available in July to present this to council including a briefing on
the CWA rate model.
On another note, DOE has approved the Lake Tapps water right. CWA will now need to proceed
with a process to fully acquire the right from PSE and fulfill obligations from the Memorandum of
Understanding.
RECOMMENDATION
This is intended to initially brief council culminating toward an action item at a future meeting.
attachments
Cf: Jim Haggerton
Cascade Wate
A lliance
CASCADE WATER PROGRAM SUMMARY
July 2003
The Cascade Water Alliance has adopted two planning and policy documents in the past year. The Action
Plan (adopted in September 2002) and the Plan for Regional Water Supply (adopted in January 2003) set
direction for the development of the Cascade Water System. The Cascade program provides an immediate
and "base load" water supply for Cascade Members, additional water for the intermediate (10 20 year)
term and a long -term supply for people and fish throughout the Region. The major components of the
Cascade Water System are the:
Block Contract with the City of Seattle;
Wholesale Purchase Contract with the City of Tacoma; and
Development of the Lake Tapps Reservoir as a public water supply.
In order to continue development and implement the Cascade Water System, the Board of Directors must
take certain specific actions. These actions include:
Approval of the 50 -Year Declining Block Water Supply Agreement with the City of Seattle;
Adoption of amendments to the Interlocal Contract;
Acquisition of the Bellevue /Issaquah Pipeline;
Acquisition of the Lake Tapps Water Right;
Negotiation of a Wholesale Water Purchase Agreement with the City of Tacoma;
Negotiation of a "wheeling" agreement with the City of Seattle;
Development of required plans; and
Adoption of the 2004 Budget
Together these actions and the related activities that support them will authorize Cascade to establish the
contractual arrangements and develop the infrastructure assets necessary to meet the current and future
water demands of its Members for the next 50 years.
Each major action required of the Board is discussed below:
Approval of the 50 -Year Declining Block Water Supply Agreement with the City of Seattle
Cascade has essentially completed negotiation of a long -term water supply agreement with the City of
Seattle. It is anticipated that the 50 -Year Declining Block Water Supply Agreement (the Block
Contract) will be presented to the Cascade Board and Seattle City Council for review and approval in
1309 114" Avenue SE, Suite 300, Bellevue, WA 98004
Telephone: 425 453 0930; Fax: 425- 453 -0953
www.cascadewater.org
Cascade Water System Development —DRAFT
July 2003
Page 2 of 2
July 2003. The Cascade Board is scheduled to act on the agreement at its August 2003 Meeting. This
agreement culminates more than three years of negotiations and provides for the purchase of water
and transmission capacity that will meet the needs of Cascade Members in the immediate future. A
summary of the major provisions of the agreement follows:
A Effective date: January 1, 2004 Termination date: December 31, 2053
Initial Cascade Block of 30.3 million gallons per day (MGD) average
Peak Season Block of 41.0 MGD
Peak Month Block of 51.2 MGD
Declining Block provisions
25.3 MGD from January 1, 2024 to December 31, 2029
20.3 MGD from January 1, 2030 to December 31, 2034
15.3 MGD from January 1, 2035 to December 31, 2039
10.3 MGD from January 1, 2040 to December 31, 2044
5.3 MGD from January 1, 2045 to December 31, 2053
First right of refusal to continue to purchase up to 5.3 MGD (with notice) for an additional 50
years
Block for resale to Cascade Members and customers within Seattle's place of use
Provision for adjustment of the Block for changes in Cascade Membership (addition or deletion of
current Seattle wholesale customers only) through December 2011
A Limits on delivery obligation for year, Peak Season, Peak Month, 30 -day period outside Peak
Season, 7-day period and single day
Seattle may install limiting devices if these limits are exceeded
A Transmission capacity to deliver the Block to Cascade Delivery Points
Water to meet or exceed federal and state standards
Cascade responsible for its own planning, shortage management and conservation programs
Coordination of planning and shortage management
Payments limited to the Existing Supply and Existing Transmission Cost Pools as well as the
Cascade Sub regional Cost Pool
Annual cost estimate provided by October 1 each year
"Take -or -Pay" obligation based on proportion of Block to Firm Yield of the current Seattle Supply
System (Cedar/Tolt/Highline)
Monthly payment schedule based on percent of annual amount
Delayed payment (with interest) for 2004 at Cascade option
A. Penalties for exceeding the Block
Rebates for failure to deliver the Block
Provision for emergency surcharge proportionate to other wholesale and retail customers
A. Individual Members accept individual contingent liability for payment in event of default (in
proportion to Block usage)
The Block Contract requires approval by the Seattle City Council prior to execution by the Director of
Seattle Public Utilities.
50 -YEAR DECLINING BLOCK
WATER SUPPLY AGREEMENT BETWEEN
THE CITY OF SEATTLE
—50 -Year Declining Block Water Sunnly Agreement
I
AND
THE CASCADE WATER ALLIANCE
6 -20 -03
Seattle Draft
ARTICLE I
ARTICLE II
ARTICLE III
ARTICLE IV
ARTICLE V
ARTICLE VI CONSERVATION
ARTICLE VII PLANNING
ARTICLE VIII COST RECOVERY
ARTICLE IX ADMINISTRATION 13
ARTICLE X TECHNICAL COMMITTEE 15
ARTICLE XI DISPUTE RESOLUTION 15
ARTICLE XII UNFORESEEN AND UNAVOIDABLE EVENTS 16
SIGNATURE PAGE 181817
Other Agreements
Points of Delivery
Block Allocation by Individual Water Utilities
Seattle Supply System Facilities
Seattle Transmission System Facilities
Cost Centers used for Operations Cost Indexes
Cascade Sub regional System Facilities
—50 -Year Declining Block Water Sunnly Agreement
TABLE OF CONTENTS
LIST OF SECTIONS
AGREEMENT 1
DEFINITIONS 1
SUPPLY
TRANSMISSION
WATER QUALITY
LIST OF EXHIBITS
2
3
5
6
6
6
7
This Agreement between the City of Seattle, a municipal corporation "Seattle and the
Cascade Water Alliance, a non profit organization of municipalities formed under authority of
Chapter 39.30 RCW "Cascade is dated this day of 2003 to be effective
January 1, 2004.
Whereas Seattle is a regional water supplier currently providing service to numerous
water utilities in King County Washington; and
Whereas a group of utilities being served by Seattle have joined together to form the
Cascade Water Alliance; and
Whereas the Cascade Water Alliance, as an organization negotiating on behalf of its
individual Member utilities, desires to enter into a single agreement for water supply with Seattle
for its Members in lieu of separate, existing contracts; now
Therefore Seattle and Cascade agree to the following terms and conditions for the
provision and purchase of a 50 -vear declining block water supply and transmixion canacity:
ARTICLE I AGREEMENT
Seattle agrees to sell to Cascade and Cascade agrees to purchase from Seattle, according to the
terms of this Agreement, a wholesale supply of water and the ncccrzary transmission capacity
sufficient to enable- deliver such water supply to Cascade.
The term of this Agreement is fifty (50) years, with an effective date of January 1, 2004 and a
termination date of December 31, 2053.
Apart from the contract right to purchase water from Seattle under the terms of this Agreement,
neither Cascade nor anv Cascade Member has any right or claim to the Seattle Water System or
to anv water right or claim held by Seattle. At the termination of this Agreement, Seattle shall
have no further obligation to supply Cascade or any of it Members with water. with the
exception of Cascade's right of first refusal to purchase up to 5.3 MGD as set forth in Section
3.4.
ARTICLE II DEFINITIONS
Average Daily Demand ("ADD"). The amount of water supplied by the Seattle Water System to
Cascade in a calendar year divided by the number of days in that calendar year.
AWWA. American Water Works Association.
Cascade Block. The total amount of water Seattle commits to supply Cascade under this
Agreement, as more fully expressed in Article III.
50 -Year Declining Block Water Supply Agreement
50 -YEAR DECLINING BLOCK
WATER SUPPLY AGREEMENT BETWEEN
THE CITY OF SEATTLE
AND
THE CASCADE WATER ALLIANCE
Cascade Member. A municipal water supplier that has entered into a Membership Agreement
with the Cascade Water Alliance.
Cascade Sub regional System. Seattle Transmission assets serving Cascade Members as listed in
Exhibit VII.
Cascade Volume Charge. In any year, the Cascade Volume Charge is the average cost to
Cascade of each million gallons of water in the Cascade Block. The Cascade Volume Charge
shall be calculated by dividing the projected annual cost of the Cascade Block calculated in
accordance with Section 8.8.B, by the product of the Cascade Block and 365.
Cascade Water System. Tangible and intangible assets owned or operated by Cascade useable in
connection with the provision of water supply.
Existing Sunnily System Facilities. Seattle Supply System assets as listed in Exhibit IV.
Existing Transmission System Facilities. Seattle Transmission System assets as listed in Exhibit
V.
Firm Yield. The estimated amount of water that Seattle's Supply System can provide according
to Seattle's 98°/ supply reliability standard and expressed in annual average MGD. Seattle's Firm
Yield as of the effective date of this agreement is 171 MGD.. Firm Yield be adiustcd if so
ordered'., S. or Feelefa' c zu1at =rent° with appropriate iurisdictic ___1:'t of
undated climatic t utilized in the h °draulic model used to calculat old. 2a:,cado shall
be n tifi d f anv notcntial c:,aritc rri xss Yield as fa :1i.
lecc than 180 days prior to tho effcotivo date of an :aMstment to Firm Yield.
Management Agreement. A written agreement, pertaining to subjects authorized by this
Agreement, between the Director, Seattle Public Utilities, and the General Manager, Cascade
Water Alliance.
MGD. Million gallons per day.
Party (ies). Seattle and/or Cascade, as well as their respective successors and assigns.
Peak Month. The consecutive thirty- (30) day period during a calendar year in which Cascade
puts its maximum demand upon the Seattle Water System.
Peak Season. June 1 through September 30.
Points of Delivery. Specific metered delivery locations at which Seattle provides a defined level
of service.
Rate of Return on Investment. The average cost of debt of the Seattle Water System plus 1.5
percent.
2
50 -Year Declinine Block Water Supply Agreement
Seattle Water System. The Seattle Supply System as listed in Exhibit IV and the Seattle
Transmission System as listed in Exhibit V together comprise the Seattle Water System.
Sub regional Facilities. Any facilities owned and operated by Seattle that are not identified as
Existing Supply System (Exhibit IV), Existing Transmission System (Exhibit V), or Cascade
Sub regional System (Exhibit VII).
ARTICLE III SUPPLY
3.1 Each calendar year from the effective date of' this Agreement through December 31, 2023,
Seattle shall make available to Cascade 31.7 30.3 MGD Average Daily Demand (the
"Cascade Block based on the current Membership of Cascade as set forth in Exhibit III.
3.2 In the event the Firm Yield of the Seattle Supply System is reduced, the Cascade Block
will be reduced in proportion to such reduction in Firm Yield In the event the Firm Yield
of the Seattle Supply Syarc,n, iraf C...:.aa. c shall have tho oition t: .c the
BI ck in or norti n t such incrcasc.Firm Yield may be adjusted if so ordered by a State or
Federal regulatory agency with appropriate jurisdiction or as the result of updated climatic
data utilized in the hydraulic model used to calculate Finn Yield. Cascade shall be notified
of any potential change in Firm Yield as far in advance as possible, but in no event less
than 180 days prior to the effective date of an adjustment to Firm Yield.
3.3 Seattle will supply the Cascade Block during the Peak Season and Peak Month as follows:
A. During the Peak Season Cascade demand shall not exceed 41_0 MGD the Cascade
Block multinliod b° 1.35;
B. During the Peak Month Cascade demand shall not exceed 51.2 MGD tJte =tde
3.4 The Cascade Block shall be adjusted in accordance with the following schedule:
A. Beginning January 1. 2024 through December 31, 2029 Seattle shall make available to,
Cascade 25.3 MGD Average Daily Demand:
B. Beginning January 1. 2030 through December 31, 2034 Seattle shall make available to,
Cascade 20.3 MGD Average Daily Demand:
C. Beginning January 1. 2035 through December 31. 2039 Seattle shall make available to
Cascade 15.3 MGD Average Daily Demand:
D. Beginning January 1, 2040 through December 31. 2044 Seattle shall make available to
Cascade 10.3 MGD Average Daily Demand:
E. Beginning January 1. 2045 through the termination date of this Agreement Seattle shall
make available to Cascade 5.3 MGD Average Daily Demand:
3.5 At the conclusion of this Agreement on December 31. 2053. Cascade shall have a first right
of refusal to purchase un to 5.3 MGD of water for a period of 50 vears. This first right of
refusal is for the sole nurnose of serving Cascade Members that cannot be served by any
other means than the Seattle Transmission System and shall be exercised by Cascade upon
a minimum of one year's written notice to Seattle specifying the Block of water from zero
to 5.3 MGD and the Cascade Members to be served by that Block.
3
50 -Year Declining Block Water Supply Agreement
3.6 All water supplied to Cascade under this Agreement is for the purpose of re -sale to Cascade
Members and other customers of Cascade; provided that all water supplied under this
Agreement must be used within the designated place of use of Seattle's water certificates,
permits, or claims.
3.7
A. Before December 31, 2011, if an agency identified in Exhibit III becomes a Cascade
Member, Seattle will release that agency from its obligations under its existing water
supply contracts with Seattle in accordance with the provisions of such contract and the
Cascade Block will be increased by the allocated amount of water identified in Exhibit
III, with corresponding proportional increase to the adjusted Cascade Block in Sections
3.2 and 3.43. If that agency takes delivery of all or a portion of its water through a
Sub regional Facility, Cascade and Seattle shall enter into a Management Agreement
for the costs of such facility.
B. Before December 31, 2011, if a Cascade Member, previously a Seattle wholesale
customer, withdraws from Cascade and contracts for water supply directly with Seattle,
Cascade will release that Member from its Membership Agreement in accordance with
the provisions of such Agreement, and the Cascade Block will be decreased by the
amount of allocated water identified in accordance with the provisions of such
Agreement in Exhibit III, with corresponding proportional decrease to the adjusted
Cascade Block in Sections 3.2 and 3.43. If that agency takes delivery of all or a
portion of its water through a Cascade Sub regional System Facility, Cascade and
Seattle shall enter into a Management Agreement for the costs of such facility_orior to
increasing the Cascade Block.
3.8 For the purpose of determining the consecutive 30 -day period, which constitutes the Peak
Month, a daily average delivery may be calculated so long as meter readings occur no
fewer than 26 days apart. In such cases, daily average delivery shall be calculated by
dividing the total deliveries by the actual number of days between meter readings. Periods
less than 26 days shall not be applicable for determining the Peak Month.
3.9 Daily average delivery during the Peak Season may be calculated using meter readings
taken closest to June 1 and September 30 each year and dividing the total delivery during
such time by the actual number of days between meter readings. Periods less than 110 days
shall not be applicable for determining the Peak Season.
3.10 Seattle shall endeavor to read the meters at all Points of Delivery on the same day. In the
event that meters at all Points of Delivery cannot be read on the same day, all meter reads
for that metering period shall be considered to occur on the day on which the meters
measuring the majority of the Cascade volume for that metering period were read.
3.11 Normal operation of the water system includes the periodic shutdown of various facilities
for routine maintenance, rehabilitation and replacement. Seattle and Cascade shall
cooperate in the timing of such activities. Cascade shall not use such activities as evidence
of the unavailability of supply or transmission services provided by Seattle under this
Agreement.
4
50 -Year Declinine Block Water Supply Agreement
3.12 Nothing in this Agreement, including, but not limited to, any penalties for exceedance of
the Cascade Block, shall be construed to require Seattle to sell or deliver water in excess of
the following amounts:
A. Total deliveries during a calendar year in the amount of the Cascade Block multiplied
by 365 (366 in leap years);
B. Total deliveries during the Peak Season in the amount of the Cascade Block multiplied
by 165;
C. Total deliveries during the Peak Month in the amount of the Cascade Block multiplied
by 51;
D. Total deliveries during any consecutive 30 -day period from October 1 to May 30 in the
amount of the Cascade Block multiplied by 30;
E. Total deliveries during any consecutive 7 -day period ef—in the amount the Cascade
Block multiplied by 13;
F. Total deliveries within any one -day period ef—in the amount of the Cascade Block
multiplied by 2.
Upon notice by Seattle of exceedance of these limits, Cascade must immediately reduce its
deliveries of Seattle water. Upon the failure of Cascade to reduce its demand, Seattle may
install and operate devices that limit deliveries to Cascade to these amounts, all at
Cascade's expense.
ARTICLE IV TRANSMISSION
4.1 Each calendar year during the term of this Agreement, Seattle shall sell to Cascade and
Cascade shall purchase from Seattle capacity in the Seattle Transmission System according
to the following terms and conditions:
A. Seattle shall provide capacity sufficient to supply the Cascade Block to Cascade at
Cascade's Points of Delivery. Adjustments in the Cascade Block shall result in an
equivalent adjustment in Seattle's Transmission capacity commitment. The specific
Points of Delivery that are to be adjusted and the adjustment for each Point of Delivery
shall be determined by Management Agreement so long as a determination is made that
there is no adverse impact on the overall Seattle Water System.
B. Points of Delivery are identified in Exhibit II. The location, hydraulic gradient and
instantaneous flows at each Point of Delivery may be changed by Management
Agreement. Seattle shall bill Cascade for capital costs associated with Cascade Points
of Delivery.
C. Seattle shall supply water at the inlet side of each Point of Delivery meter at a hydraulic
gradient no less than the minimum identified in Exhibit II and with an instantaneous
flow rate not to exceed that Point of Delivery's peak day demand as set forth in the
same exhibit. Seattle may change the minimum hydraulic gradient at any Point of
Delivery once during any fifteen -year period, provided that four years prior notice is
given to Cascade. Under emergency conditions or other unusual short-term operating
situations Seattle shall not be obligated to meet minimum hydraulic gradients.
50 -Year Declinine Block Water Supply Agreement
5
D. Cascade may request additional Points of Delivery from the Seattle Transmission
System, which Seattle may approve or reject at its sole discretion. Seattle shall
establish the minimum hydraulic gradient for any new Point of Delivery at its sole
discretion, after consultation with Cascade. Changes in Points of Delivery shall be
determined by Management Agreement.
E. No provision of this Agreement shall be construed to require Seattle to provide more
than the instantaneous flow identified in Exhibit II. Upon notice by Seattle, Cascade
shall immediately reduce Cascade deliveries at a Point of Delivery to not more than
those identified in Exhibit II. In the event that Cascade is unwilling or unable to reduce
deliveries as required under this provision, Seattle may install and operate flow
restricting devices at non compliant points of delivery, all at Cascade expense.
4.2 Cascade is served, in part, by transmission facilities referred to as the Cascade Sub regional
System listed in Exhibit VII. The costs of operating, maintaining, repairing and replacing
these facilities shall be the responsibility of Cascade as outlined in Section Exhibit VIII
4.3 Nothing herein shall restrict Cascade's authority to construct an independent water
transmission system for its own water supply.
4.4 Cascade Members have interties, listed in Exhibit I, with adjacent water utilities that are
non Cascade members. Any existing agreements related to the billing and meter_reading
arrangements for these interties are assumed as a part of this Agreement. If new
interconnections between Cascade or Cascade Members and non Cascade members require
similar billing and meter reading arrangements, such arrangements shall be defined in an
agreement to be entered into by Cascade, Seattle and the non Cascade member.
ARTICLE V WATER OUALITY
Seattle shall be responsible for water quality within the Seattle Water System, and it shall supply
water to Cascade, that meets or exceeds federal and state drinking water quality standards, as
those standards may change from time to time.
ARTICLE VI CONSERVATION
Each Party is committed to the principles of water conservation and each intends to achieve its
anticipated savings by implementing water conservation programs either unilaterally or in
partnership with other agencies.
ARTICLE VII PLANNING AND SHORTAGE MANAGEMENT
7.1 Each Party recognizes its obligation to plan for water supply and distribution in compliance
with the State Department of Health water system planning regulations Each Party shall
develop a water system plan for its service area and the Parties shall coordinate those
elements of overlapping responsibilities.
50 -Year Declining Block Water Supply Agreement
6
7.2 Cascade and Seattle shall coordinate the development, adoption and implementation of
their respective Water Shortage Management Plans. Before invoking its Water Shortage
Management Plan, the Parties shall communicate with each other concerning current and
projected water supply conditions.
7.3 Seattle has negotiated agreements with federal agencies, state agencies and tribes for the
long term preservation and enhancement of watersheds and in- stream beneficial uses and
habitat. Such agreements have direct bearing on decisions to curtail the amount of water
available for municipal and industrial water supply in any given season Any water use
restrictions imposed under the terms of such agreements shall be borne proportionately by
Seattle, its other wholesale customers, and Cascade with respect only to the Cascade
Block.
ARTICLE VIII COST RECOVERY
8.1 The provisions of this Article shall apply to the establishment of fees and charges for water
supply and related services beginning January 1, 2004. Prior to that date, the pricing
provisions of each Cascade Members' individual water supply contract with Seattle shall
be maintained.
8.2 For the purposes of determining costs of water supply, there shall be two water supply cost
pools consisting of an existing Seattle water supply assets cost pool "Existing Supply Cost
Pool and a new Seattle water supply assets cost pool (the "New Supply Cost Pool
A. Existing Sunnly Cost Pool. The costs of infrastructure, including operation,
maintenance, repair and replacement of Seattle Supply System Facilities listed in
Exhibit IV shall be included in the Existing Supply Cost Pool
B. New Sunnly Cost Pool. The costs of water supply resources developed in the future
"New Supply Resources that expand the capacity of the Seattle Supply System,
including the costs of the 1% conservation program from January 1, 2004 through 2010
shall be included in the New Supply Cost Pool. If any portion of a New Supply
Resource project enhances reliability of Existing Supply Resources, the costs thereof
may be allocated to the Existing Supply Cost Pool by Management Agreement.
8.3 For purposes of determining the cost of the transmission of water to the Wholesale
Customers there shall be three transmission cost pools consisting of an existing
transmission cost pool "Existing Transmission Cost Pool a new transmission cost pool
"New Transmission Cost Pool and a Cascade transmission cost pool "Cascade Sub
regional System Cost Pool
A. Existing Transmission Cost Pool. Costs to be allocated to the Existing Transmission
Cost Pool shall consist of the following: operation, maintenance, repairs and
replacements to the Seattle Transmission System Facilities listed in Exhibit V. Costs
incurred for purposes of transmission reliability may be included in the Existing
Transmission Cost Pool by Management Agreement.
7
50 -Year Declining Block Water Supply Agreement
B. New Transmission Cost Pool. The cost of new transmission facilities shall be included
in the New Transmission Cost Pool. A portion of the renewal, replacement or
modification of existing transmission facilities which create an expansion of
transmission capacity may be allocated to the New Transmission Cost Pool.
Cascade Sub regional System Cost Pool. The costs of operating, maintaining, repairing
and replacing the Cascade Sub Regional System Facilities owned by Seattle and listed
in Exhibit VII shall be included in the Cascade Sub regional System Cost Pool, in an
amount proportionate to the use of' the facilities by Cascade, together with any other
costs Cascade and Seattle agree to include by Management Agreement. In the event
that Cascade ceases to receive water through one or more of the facilities in the
Cascade Sub regional System, these facilities may be decommissioned at Seattle's sole
discretion, and Cascade shall pay Seattle for the remaining Net Book Value of the
decommissioned facilities in an amount proportionate to the use of the facilities by
Cascade together with any decommissioning costs.
&4D Creation of Additional Cost Pools. Seattle, in its discretion, may create additional
cost pools to provide equity and flexibility in payment arrangements and the allocation
of costs as the Seattle Water System expands to include new infrastructure and new
customers. The costs in an additional cost pool, or a portion thereof, may be allocated
to a cost pool identified in Section 8.2 and 8.3 provided the costs of the facilities within
that additional cost pool could be allocated directly to the cost pool in accordance with
this Agreement. Any cost may be allocated to any cost pool by Management
Agreement.
8.4 A. If Seattle determines that changing the location of a Cascade Point of Delivery is
required for the improved operation of the Seattle Transmission System then such costs
shall be included in the Existing Transmission Cost Pool. Seattle shall notify Cascade
of any proposed changes to a Cascade Point of Delivery and consult with Cascade to
ensure minimal impact on the affected Cascade Member's distribution system and
appropriate coordination of operation and construction activities.
B. If Cascade requests the change in location of a Cascade Point of Delivery or if
improvements are required to a Cascade Point of Delivery, then such coot shall be
included in the Cascade shall Dav the costs associated with the change. Sub Regional
System C ct P 1. Seattle will bill Cascade for, and Cascade shall pay, all capital costs
associated with the Cascade requested change in location of or necessary improvement
to a Cascade Point of Delivery, including, but not limited to, meter replacement,
telemetry equipment and vault replacement. The cost of improvements to a Cascade
Point of Delivery shall be bome by Cascade regardless of the cause for the
improvements provided that such cause is consistent with AWWA and safety standards
and practices. Capital costs will be invoiced and due in 30 days upon receipt or as
otherwise provided for by Management AgreementScattic shall notify az nie of any
C.
annr nriatc c rdinati n f ncrati n and eetietpaetlea
8
50 -Year Declining Block Water Supply Agreement
8.5 Seattle shall maintain a cost accounting system consistent with the provisions of this
Agreement and generally accepted accounting principles consistently applied in developing
the financial information for determining the costs of construction, replacement,
maintenance and operation of the facilities in each cost pool.
A. Asset Accounts. An asset account shall be maintained for each facility and within that
account Seattle shall record the original cost of that facility plus betterments and Iess
retirements.
B. Depreciation. Facilities shall be depreciated according to Standard Water System Asset
Lives and a record of life -to -date depreciation shall be maintained for each facility. No
depreciation shall be recorded in the first calendar year of operation of a facility. A full
year's depreciation shall be recorded in every subsequent year.
C. Net Book Value. The net book value of any facility shall be its original cost plus
betterments and less retirements as recorded in its facility asset account, less life -to -date
depreciation.
8.6 Costs in each cost pool shall be calculated as follows:
A. Infrastructure Costs. Each cost pool shall include the infrastructure costs for its
respective facilities, calculated on a utility, cash or other basis depending upon the
facility and the cost pool as set forth below.
1. Utilitv Basis. The utility basis shall be used to calculate the infrastructure costs for
all Existing Supply Facilities, all Existing Transmission Facilities, and all Cascade
Sub Regional System facilities, as well as their replacements and betterments.
Under the utility basis, the infrastructure cost for a facility in any year shall be the
sum of (i) the annual depreciation expense recorded for that facility and (ii) the
product of the net book value of that facility and the Rate Of Return On Investment.
At Seattle's discretion, interest costs may be considered current infrastructure costs
during the construction of a facility. However, any such interest costs must then be
considered contributions in aid of construction, and not included in the Net Book
Value of the facility for purposes of calculating Utility Basis costs in future years.
B. Onerations Costs. The costs of operating the assets assigned to a cost pool shall be
included in the cost pool. The annual operations costs of a cost pool shall be the labor,
materials, equipment and other direct costs required for the operation and maintenance
of the facilities in that cost pool, together with any net profit or expense from the
disposition of facilities in that pool. Operations costs shall include the cost of general
and administrative overhead applied in a manner consistent with its application to
facilities construction projects.
1. Existing Sunnly Onerations Costs. The parties agree that an efficient way of
handling operations costs for the Existing Supply Cost Pool shall be as follows: The
Operations Cost base in the Existing Supply Cost Pool for the year 2001 shall be
9
50 Year Decl ining Block Water Supply Agreement
$17,780,262.00. In each succeeding year, the amount from the previous year shall
be adjusted by the percentage change in the total cost of all the supply cost centers
identified in Exhibit VI, except that the increase in treatment operations costs
caused by the first full year start-up of the Cedar Treatment Plant at Lake Youngs in
or around 2005 shall not be included in the percentage adjustment. Any increase in
Cedar Treatment operations costs for the first full year of operation of the plant
shall instead be added directly to the Operations Cost total from the prior year as
adjusted by the index. For each year after the first full year of operation, increases
in Cedar Treatment operations costs shall be included in the adjustment index.
2. Existing Transmission Operations Costs. The parties agree that an efficient way of
handling operations costs for the Existing Transmission Cost Pool shall be as
follows: the Operations Costs base in the Existing Transmission Cost Pool for the
year 2001 shall be $4,531,931.00. In each succeeding year, the amount of these
costs from the previous year shall be adjusted by the percentage change in the total
cost of all the transmission cost centers identified in Exhibit VI.
3. Cascade Sub regional System Cost Pool Operating Costs. Cascade Sub regional
System Cost Pool Operating Costs shall include: (i) the actual costs of operating the
facilities listed in Exhibit VII in proportion to the actual use of such facilities by
Cascade; (ii) the electricity costs paid by Seattle after the effective date of this
A in accordance with certain contracts effective on or before January 1,
2002 identified in Exhibit I, for pump stations owned and operated by Cascade
Members and connected to the Tolt East Side Supply Line; and, (iii) any other costs
approved by Management Agreement shall be Cascade Sub regional System Cost
Pool Operating Costs.
C. Disposition Costs. The costs of disposing of assets within a cost pool shall be included
in the cost pool. Net disposition costs shall be calculated as follows:
1. Disposition under the Utility Basis. The net book value of the facility, less any
sales, salvage, or other revenues derived from the disposition of that facility.
8.7 The costs in cost pools shall be allocated to Cascade as follows:
A. Allocation of Existing Supply Cost Pool. Cascade shall pay one hundred two percent
(102 of the product of the Cascade Block and the costs in the Existing Supply Cost
Pool divided by the Firm Yield.
B. Allocation of New Sunnly Cost Pool. Cascade shall pay none of the costs in the New
Supply Cost Pool.
C. Allocation of Existing Transmission Cost Pool. Cascade shall pay one hundred two
percent (102 of the product of the Cascade Block and the costs in the Existing
Transmission Cost Pool divided by the Firm Yield.
D. Allocation of New Transmission Cost Pool Cascade shall pay none of the costs in the
New Transmission Cost Pool.
P.,E. Allocation of the Cascade Sub- regional System Cost Pool. Cascade shall pay the
entire costs in the Cascade Sub regional System Cost Pool as outlined in Exhibit VIII.
10
50 -Year Declining Block Water Supply Agreement
8.8 Cascade shall pay the costs of penalties for exceeding the Cascade Block, as defined in
Section 8 9S and any other costs requiring invoice by Seattle within 30 days of invoice by
Seattle. Cascade shall pay the annual costs allocated to Cascade in accordance with
Section 8.7 as follows:
A. Prosnective Cost Estimate. Seattle may conduct a cost estimating study to revise
estimates of the annual costs allocable to Cascade upon 120 days notice to Cascade.
Cascade shall pay Seattle according to the estimated annual costs in such study,
provided that not more than five years has elapsed from the time a study is conducted to
the year in which the estimates from that study are used. Each study shall estimate the
annual costs for not less than the five following years.
B. Statement of Annual Costs. On or before December 1 of each year, Seattle shall
notify Cascade of Cascade's annual cost for the next year. Such annual cost shall be
the sum of the prospective cost estimate determined in accordance with Section 8.8A
and the amount of excess or deficit identified in the most recent cost audit performed in
accordance with Section 8.8D. On or before October 1 of each year Seattle shall
provide Cascade with its best, non binding estimate of the annual cost for the next year.
C. Payment Distribution. On or before the last day of each month, Cascade shall pay
Seattle that portion of Cascade's annual cost for that year, calculated pursuant to
Section 8.8B, according to the following schedule:
January 5%
February 5%
March 6%
April 6%
May 6%
June 12%
July 13%
August 15%
September 13%
October 7%
November 6%
December 6%
Upon 45 days written notice to Seattle, the payment schedule for 2004 only may be as
listed below. In addition to these amounts. Cascade shall include an additional 545.000
in its December 2004 navment as a one time service fee associated for this navment
schedule.
January 0%
February 0%
March 6%
April 6%
11
50 -Year Declining Block Water Supply Agreement
May 8%
June 14%
July 15%
August 16%
September 14%
October 7%
November 7%
December 7%
December payment as a one time service f::
Overdue balances shall bear interest at the rate of 1% per month. In no event shall
Cascade be required to pay Seattle a monthly payment during a year until at least 30
days after Seattle provides Cascade with a statement of annual costs for that year, and
such payments shall not be considered overdue, until 30 days after such statement is
provided to Cascade.
D. Cost Audit. No later than August 1 of each year, Seattle shall provide a statement of
actual costs allocated to each cost pool and other costs and revenues received during the
prior year, which statement shall be audited by an external auditor. In addition,
Cascade may have the statement audited by an external auditor of its choice, solely at
Cascade's expense. This statement shall clearly identify the amount by which
payments made by Cascade during the prior year were in excess of, or insufficient to
meet the actual costs allocable to Cascade for the prior year. This surplus or deficit
shall earn interest at the Rate of Return on Investment, and shall be reduced in
accordance with Section 8.8B. No later than December 31 of the year following the
termination of the contract, any remaining surplus or deficit balance shall be paid in
cash by the party owing the balance to the party to whom the balance is owed.
E. Payment from Gross Revenues. Cascade shall pay the charges out of its gross revenues.
Cascade's payments to Seattle pursuant to this Agreement and payments otherwise
required or provided for by this Agreement shall be maintenance and operation
expenses of Cascade, payable prior to and superior to any charge or lien of any revenue
bond issued by Cascade that are payable from the revenues of Cascade. Cascade shall
establish rates and collect fees and charges for wholesale water service sufficient to pay
for the maintenance and operation of its Water Supply System, including payments to
Seattle, and the principal and interest on any and all Cascade revenue obligations that
constitute a charge against the revenue of Cascade.
F. Emergency Surcharge. In the event of a catastrophe or other extraordinary condition
that requires emergency expenditures to maintain a sufficient water supply, Seattle may
impose an emergency surcharge proportionately on all of its retail and wholesale
customers, including Cascade in order to pay for such expenditures. Any such
emergency surcharge shall be presented to Cascade prior to adoption by Seattle. Seattle
shall consider Cascade's comments but shall nevertheless have the full authority to
adopt the charge.
12
50 -Year Declining Block Water Supply Agreement
8.9 A. Charges imposed for exceeding the Cascade Block, Peak Season or Peak Month
limitations will be determined through the application of multipliers to the Cascade
Volume Charge. The charge for exceeding the Cascade Block, Peak Month or Peak
Season shall be calculated by (1) multiplying the Cascade Volume Charge by the
appropriate factor in the following table, (2) multiplying by the amount of the
exceedance (in MGD) and (3) multiplying by the actual number of days in the year,
Peak Month or Peak Season, whichever is applicable.
Category
1 Annual Average Daily Demand
1 Peak Month Demand
1 Peak Season Demand
Category
1 Annual Average Daily Demand
1 Peak Month Demand
1 Peak Season Demand
ARTICLE IX ADMINISTRATION
50 -Near Declining Block Water Supply Agreement
13
O to 1 MGD 1 >1 to 3 MGD
B. In the event that the Cascade Block, Peak Season or Peak Month limitations are
exceeded in 2 or more years during any consecutive five -year period, the following
charges apply:
0 to 1 MGD
1.0
1.5
1.5
1.1
9.1
3.1
>1 to 3 MGD
1.2
16.7
4.7
>3 MGD
1.2
16.7
4.7
>3 MGD
1.2
16.7
4.7
C. In the event of a charge for exceeding the block occurs in more than one category in
either a single year or in multiple years during any consecutive fiveyear period, only
the category that results in the highest charge will be assessed.
8.10 Except in the case of an emergency, the provisions of Section 8 9 shall be applied
reciprocally to Seattle to calculate credits to Cascade, should Seattle fail to deliver the
Cascade Block as required by this Agreement.
9.1 Seattle shall own and maintain appropriate metering devices to measure the water flowing
from the Seattle Water System to each Point of Delivery. At Cascade's request and sole
expense, Seattle will install and maintain equipment selected by Cascade and approved by
Seattle to transmit signals to recording equipment of Cascade or its Members (located
elsewhere) of the amount of water delivered, as measured by Seattle's meters.
9.2 As of the end of the calendar year immediately following the effective date of this
Agreement and following a change in Cascade Membership through 2011, Seattle shall pro
rate the balances in the Purveyor Balance Accounts among its contract Purveyors (1982
Water Purveyor Contract, Version A or B) and transfer to Cascade the pro rated balance of
each Purveyor that is a Cascade Member, provided that such transfer shall occur only once
for each Cascade Member.
1
9.3 Seattle shall keep full and complete books of accounts for the Seattle Water Supply System
and Seattle's retail distribution system in compliance with current standards required by the
State Auditor. Cascade, at its own expense, may at any time audit Seattle's book of
accounts using the services of a public accounting firm and Seattle shall make the books
and records of the Seattle Water System and Seattle's retail distribution system available to
such auditors during reasonable business hours upon reasonable notice at the place where
such records are normally kept. Seattle shall provide adequate facilities; i.e., room and
workspace, so the audit can be performed. Seattle shall have reciprocal rights to audit
Cascade books and accounts.
9.4 This Agreement shall be interpreted according to the laws of the State of Washington and
the venue for any litigation between the Parties concerning its terms shall be in the
Superior Court of King County at Seattle. The Parties shall be entitled to specific
performance of the terms of this Agreement.
9.5 This Agreement shall inure to the benefit of and be binding upon successors of interest and
assigns of the Parties. Neither this Agreement nor obligations to perform hereunder may
be voluntarily assigned by either Party without the other Party's written consent, which
shall not be unreasonably withheld; provided however, that a change in Cascade's corporate
form; e.g., from interlocal organization to another form of organization authorized by
Washington law, shall not be considered an assignment. Seattle may not convey the Seattle
Water System or its component parts without providing for an assumption of this
Agreement and the obligations contained herein by the conveyee. The Parties do not intend
to confer rights or benefits upon any third party. Only a writing executed by the Parties
may modify this Agreement.
9.6 All notices relating to this Agreement shall be sent to the following addresses, certified
mail, return receipt requested, unless the other Party is previously notified in writing of a
change in recipient or address:
To Seattle:
Director
Seattle Public Utilities
700 Fifth Avenue, 49 Fl.
Seattle, WA 98104
50 -Year Decl inine Block Water Supply Agreement
14
To Cascade:
General Manager
Cascade Water Alliance
1309 114th Ave SE, Suite 300
Bellevue, WA 98004
9.7 If any provision of this Agreement or its application is determined by a court of law to be
illegal, invalid, or void without rendering performance of this Agreement impossible or
infeasible, then the Parties intend that the validity of the remaining provisions of this
Agreement or their application shall not be affected and shall continue in full force and
effect.
9.8 This Agreement is intended to be and is a contract for the purchase and sale of water and
transmission services related to that water and no provision hereof and shall not be
construed to make the Parties partners or joint ventures. Neither Party is the agent of the
other nor shall either Party be held liable for the acts of the other on a theory of agency or
any other representative capacity.
9.9 In the event of default of any provision of this Agreement, the non defaulting Party shall
issue written notice to the other Party setting forth the nature of the default. If the default is
for a monetary payment due hereunder, the defaulting Party shall have thirty (30) days to
cure the default. In the event of other defaults, the non defaulting Party shall use its best
efforts to cure the default within ninety (90) days. If such default cannot be reasonably
cured within such ninety (90) day period, the non defaulting party shall, upon written
request prior to the expiration of the ninety (90) day period be granted an additional sixty
(60) days to cure the default.
9.10 In the event of a default in payment by Cascade, Seattle shall have the right to
compensation from the constituent Cascade Members up to the proportionate share of each
Member's use of the Cascade Block pursuant to thowhich in the first 15 months of the
Agreement shall be established by Exhibit III. and thereafter by the most recent annual
report of' Cascade Member's proportionate use of the Cascade Block. which proportionate
use shall total 100 percent of the Cascade Block which Cascade's annual proportionate
use report shall be completed and delivered to Seattle no later than March 31 of each year.
Each Cascade Member must acknowledge and accept this individual, contingent liability to
Seattle in writing at the time that Cascade enters into this Agreement. Those agencies that
later join Cascade in accordance with Section 3.4A shall convey such written
acknowledgment to Seattle within one month of joining Cascade. Should any Cascade
Member fail to convey such written acknowledgement, Seattle shall have the unilateral
right, upon written notice to Cascade, to reduce the Cascade Block by the amount allocated
to such Cascade Member as set forth in Exhibit III. or by Cascade's most recent annual
proportionate use report. until such written acknowledgement is provided to Seattle.
9.11 Upon entering into this Agreement, or upon later becoming a Cascade Member, each
C iwater utility that is listed in Exhibit III thereby relinquishes its then
existing Seattle wholesale contract and the terms and conditions of that contract shall have
no further force or effect as to those utilities that are or become Cascade Members.
ARTICLE X TECHNICAL COMMITTEE
Technical Committees comprising Seattle staff and other affected parties will address day to day
operational issues related to the Seattle Water System. Finance cost and rate issues will be
addressed independently between the Director of Seattle Public Utilities and the General
Manager of Cascade Water Alliance, or their respective designees as provided for in written
notice to the other. It is recognized that daily operation of the Seattle Water System may require
direct communication between Seattle staff and the staff of the Cascade Members.
ARTICLE XI DISPUTE RESOLUTION
11.1 Cascade and Seattle shall make good faith efforts to resolve by informal discussion any
dispute arising under or in connection with this Agreement. If at any time a Party to a
dispute determines that such informal discussions will not result in a resolution, such Party
may initiate non binding mediation of any dispute arising under or in connection with this
Agreement. Within ten (10) days of receiving written notice of initiation of non binding
mediation by one or both Parties, each Party shall designate in writing not more than five
50 -Year Declining Black Water Supply Agreement
15
(5) candidates it proposes to act as a non binding mediator. The Parties shall within an
additional five (5) days select one of the mediators from either list to serve as mediator.
Should the parties be unable to agree upon a mediator, a mediator shall be chosen from one
of the two lists by the presiding judge of the King County Superior Court at Seattle. Upon
selection of the mediator, the Parties shall use reasonable efforts to resolve the dispute
within thirty (30) days with the assistance of the mediator. The cost of mediation shall be
shared by Cascade and Seattle equally.
11.2 If mediation fails to resolve the dispute within thirty (30) days of selection of the mediator,
the Parties may thereafter seek redress in court.
11.3 Pending the decision in any mediation or litigation process pursuant to this section, the
Parties to such process shall continue to fulfill their respective duties under this Agreement.
ARTICLE XII EMERGENCY EVENTS
The Parties recognize that unforeseen and unavoidable events may occur which would require
Seattle to act unilaterally for what it deems to be in the best interest of the general public served
by the Seattle Water System; including water shortages resulting from drought circumstances
and temporary reduction in water supply associated with turbidity events. Upon the occurrence
of an unforeseen or unavoidable event, Seattle shall, to the extent practicable, treat its wholesale
and retail customers equally and any curtailment of supply shall be imposed proportionately
among those customers. This authority to act unilaterally carries with it a unilateral responsibility
of Seattle to restore, expeditiously, the Seattle Water System to its pre- emergency capability to
supply the region.
4449e= :r_ =foreseen c_ Didablc cv nt that adversely impacts the :'e
Wat r System. Cascade may r oucst S attic m difv r sus end provisions fthis Acreem nt and
Seattle -shall make 'plc cff rts to Grant such request. Cascade will aot o_ no to
rest re the Cascade Water Svst m t its pre emcrzcncv capability.
The time periods for Seattle's both parties' performance under any provisions of this Agreement
shall be extended for a reasonable period of time during which Seattle's performance is
prevented, in good faith, due to fire, flood, drought, turbidity events, earthquake, lockouts,
strikes, embargoes, acts of God, war and civil disobedience. If this provision is invoked, Seattle
agrees to immediately take all reasonable steps to alleviate, cure, minimize or avoid
the cause preventing such performance.
ARTICLE XIII EXHIBITS
Exhibits I through VIII are attached hereto and are hereby incorporated by reference into the
Agreement as if set forth in full herein.
ARTICLE XIV COMPLETE AGREEMENT
This Agreement represents the entire agreement between the parties concerning the subject
matter hereof. This Agreement may not be amended except as provided in Section 9.5.
50 Year Declining Block Water Supply Agreement
16
BY: DATE:
CHAIR, BOARD OF DIRECTORS
B DATE:
DIRECTOR, SEATTLE PUBLIC UTILITIES
SIGNATURE PAGE
THE CITY OF SEATTLE, a municipal corporation
THE CASCADE WATER ALLIANCE, a nonprofit corporation
50 -Year Declining Block Water Supply Agreement
18
Other Agreements
A. List of documents, commitments, adjustments, reductions, agreements, and/or written
approvals by Seattle regarding the supply, purchase and/or resale of water according to
Section 4.4 of this_Agreement:
1. Intertie Agreements:
2. Independent Well Sources:
2.
3.
a.
Entity/location
Meter
Size
Capacity
3. -Water Sunnlv Contracts To Other Water Utilities:
Type of Comment
Service
EXHIBIT I
13. List of electric contracts for Hump stations owned and operated by Cascade Members and
connected to the Tolt Eastside Sunnis/ Line according to Section 8.6.B.3 of this Agreement:,
19
5O -Year Declining Block Water Supply Agreement
EXHIBIT 11
POINTS OF DELIVERY, MINIMUM HYDRAULIC GRADIENTS, AND MAXIMUM
FLOW RATES OF WATER SUPPLIED
METER SERVICE
MINIMUM HYDRAULIC
GRADIENT FOR
PLANNING PURPOSES AT
STATION UPSTREAM OF
METER
(FEET NAVD -88 Datum)
MAXIMUM FLOW
RATE UP TO WHICH
THE MINIMUM
HYDRAULIC
GRADIENT APPLIES
(gpm) (2)
LOCATION
STATION
NUMBER
v)
PIPELINE
SEGMENT
NUMBER(')
SIZE OF
METER
(IN.)
Bellevue (*Redmond)
59
.8
8
415
132"d Ave. SE & SE 26th Street
128th Ave. SE & Newport Way
56
.8
8
425
Mercer Is. Pipeline & 108th Ave. SE
66
.9
8
410
134t Ave. NE & NE 24th Street
64
.1
8
475
140th Ave. NE & 40th Street*
65
.1
10
520
132nd Ave. NE & NE 14'" St.
62
.1
10
505
132 "d Ave. NE & NE 24th Street
63
.1
10
475
152 "d Ave. NE & NE 8th Street
61
.1
10
485
145th Pl. SE & SE 28th Street
58
.1
12
500
Kirkland / Redmond
74
.1
10
545
I
132 "d Ave. NE & NE 113t Street
132 "d Ave. NE & NE 85th Street
75
.1
10
535
140th Ave. NE & NE 70th Street
72
.1
10
530
25 Year Block
Water Supply Agreement — Cascade Comments — December 10, 2002
20
METER SERVICE
mramUM HYDRAULIC
GRADIENT FOR
PLANNING PURPOSES AT
STATION UPSTREAM OF
METER
(FEET NAVD -88 Datum)
MAXIMUM FLOW
RATE UP TO WHICH
THE M NIMUM
HYDRAULIC
GRADIENT APPLIES
(gpm) (2)
LOCATION
STATION
NUMBER
M
PIPELINE
SEGMENT
NUMBERtt)
SIZE OF
METER
(IN.)
M 3rcer Island
Redmond
4.4814' Ave. NE & NE 8014 Street
NE 104th Street
NE 172 "`t Street (planned new location)
Trilogy Parkway
Trilogy Parkway (planned additional meter)
Skyway
Beacon Ave. S & S 128`" Street
4
.12
6
445
84th Ave. S & S 134th Street
1
.12
6
455
Tukwila
Beacon Ave. S & S Leo Street
6
.12
4
445
E. Marginal Way & S. 112th Street
7
.15
6
435
TOTAL:
Notes:
(1)
25 Year Block
Water Supply Agreement — Cascade Comments —December 10, 2002
21
CWA
Existing Purveyors 30.28 41.02 51.23
Bellevue 17.67 1.35 a, b 23.85 1.70 f, b 30.04
Kirkland 4.40 1.35 a, b 5.94 1.70 f, b 7.48
Redmond 4.56 1.35 a, b 6.16 1.70 f, b 7.75
Skyway 0.48 1.12 a, c 0.54 1.32 t, c 0.63
Tukwila 3.17 1.43 a 4.53 1.68 f 5.33
New Purveyors 0.00 0.00 0.00
Covington 0.00 1.24 a 0.00 1.45 e 0.00
Issaquah 0.00 1.24 e 0.00 1.45 e 0.00
Sammamish Plateau 0.00 1.24 e 0.00 1.45 e 0.00
NON CWA
EXHIBIT III
BLOCK ALLOCATIONS BY INDIVIDUAL WATER UTILITIES
As Measured at the Meter Net of 2% Transmission Losses)
weak Peak Peak eleak
Annual Season Season Month Month
Block Factor Block Factor Block
30.3 41.0 51.2
Existing Purveyors 42.38 54.86 68.30
Bothell 1.62 1.42 a 2.30 1.78 g 2.88
Cedar River 2.83 1.45 a 4.10 2.08 f 5.89
Coal Creek 0.94 1.42 a 1.33 1.90 f 1.79
Duvall 0.83 1.34 a 1.11 1.66f 1.38
Edmonds 0.00 1.00 0.00 1.00 0.00
Highline 6.89 1.22 a 8.41 1.45 f 9.99
Mercer Island 2.15 1.44 a 3.10 1.86 f 4.00
Northshore 6.05 1.31 a 7.93 1.64 f 9.92
Olympic View 1.02 1.14 a 1.16 1.53 f 1.56
Shoreline 1.91 1.24 a 2.37 1.55 f 2.96
Soos Creek 4.62 1.17 a 5.41 1.27 f 5.87
Woodinville 5.57 1.42 a 7.91 1.84 f 10.25
WD 20 2.73 1.22 a, d 3.33 1.47 f, d 4.01
WD45 0.30 1.22 0.37 1.47f,d 0.44
WD 49 1.39 1.22 a 1.70 1.39f 1.93
WD85 0.11 1.22a, 0.13 1.47f, 0.16
WD 90 0.93 1.27 a 1.18 1.67 f 1,55
WD 119 0.42 1.16 a 0.49 1.62 f 0,68
WD 125 2.07 1.22 a, d 2.53 1.47 f, d 3.04
Notes: a. Based on water purchased from Seattle In 1998, which was the year in the period from 1994 to 2000 with the
highest total system peak season factor. Billing data from May 22 -Sept 22, 1998, was used to compute the
factors.
b. Total average peaking factor for Bellevue, Kirkland and Redmond, since Redmond purchases Seattle water from
Bellevue and Kirkland.
c. Based on total from Bryn Mawr and Skyway, which merged in 2001.
d. Total average peaking factor for W.D. 20, 45, 85, and 125, since these water districts operate as a consortium.
e. System average
f. Based on water purchased from Seattle in 1998, which was the year In the period from 1994 to 2000 with the
highest total system peak month factor. Demand Metering data and Allocation Factor calculations for
July 17- August 15, 1998, was used to compute the factors.
9. Because of possible metering errors during the peak month for Bothell in 1998, peak month factor is based on
August purchases from Seattle in 2000.
i0 -Year Declining Blnrk Water Supply Agreement
YY 23
SO -Near Declining Rlnck Water Supply Agreement
Seattle Supply System Facilities
24
EXHIBIT IV
1. Cedar Source
All roads, buildings, structures, water supply facilities, recreational and educational
facilities, and fisheries enhancement and mitigation facilities located within or close to
the Cedar River Hydrographic Watershed boundary as defined by Seattle land ownership,
including the land itself, and any capitalized studies related to the above. Excepted are
facilities solely owned by Seattle City Light for the purpose of power generation.
Facilities shared by Seattle City Light and Seattle Public Utilities shall be part of the
Seattle Supply System only to the extent of SPU share or responsibility.
All facilities located within the Lake Youngs Reservation as defined by Seattle ownership
of the land except for conveyance facilities used to transport finished water during non
emergency operation
All facilities located within the Lake Youngs Aqueduct, the Landsburg Tunnel, and the
Lake Youngs Supply Lines right -of -way, including the right -of -way itself
Existing Morse Lake Floating Pump Stations
2. Tolt Source
All roads, buildings, structures, water supply facilities, recreational and educational
facilities, and fisheries enhancement and mitigation facilities located within or close to
the South Fork Tolt River Hydrographic Watershed boundary as defined by Seattle land
ownership, including the land itself, and any capitalized studies related to the above.
Excepted are facilities solely owned by Seattle City Light for the purpose of power
generation. Facilities shared by Seattle City Light and Seattle Public Utilities shall be
part of the Seattle Supply System only to the extent of SPU share or responsibility.
Tolt Treatment Facility
3. Highline Wellfield
Riverton Wells, including all pumping and treatment equipment, original yard piping, to
the connection to CRPL4, and the low flow piping to Riverton Reservoir
Boulevard Well, including all pumping and treatment equipment, and all piping up to the
connection to CRPL4
4. Other
One Percent Conservation Program through December 31, 2003
Commercial Incentive Program through December 31, 2003
Commercial Toilet Retrofit Program through December 31, 2003
Showerhead retrofit Program through December 31, 2003
The Seattle Forecasting Model (SEAFM Model)
GIS Projects related to facilities identified herein as part of the Seattle Supply System
Seattle Transmission System Facilities
EXHIBIT V
1. Pipelines
Tolt Pipeline No. 1 from the outlet of the Tolt Treatment Facility (TIT) to Lake Forest
Reservoir, including any transfer and ancillary small diameter parallel pipes (Note:
Includes TPL1 and TPL2 between the Reg. Basin and TTF in Supply!)
Tolt Pipeline No. 2 (where constructed), including any transfer and ancillary small
diameter parallel pipes
Tolt Tieline
Tolt Eastside Supply Line (from TESS Junction to the intersection of SE 16 ST and
145 Place SE)
Tolt Eastside Line Extension (from the intersection of SE 16 ST and 145 Place SE to
Eastside Reservoir)
The 540 head Pipeline from Maple Leaf Reservoir to Lake Forest Reservoir
Lake Youngs Bypass No. 4 from the outlet of each of the Cedar Treatment Facility
clearwells to Control Works
Lake Youngs Bypass No. 5 from the outlet of each of the Cedar Treatment Facility
clearwells to the Lake Youngs Tunnel
The Lake Youngs Tunnel (from the original lake outlet to Control Works)
The Maple Leaf Pipeline (from the intersection of 18th Avenue E. and E. Prospect Street
to Maple Leaf Reservoir)
Cedar River Pipeline No. 1 from Control Works to the intersection of 18 Avenue E and
E. Prospect Street
Cedar River Pipeline No. 2 from Control Works to the intersection of 12 Avenue E. and
E. Olive Street
Cedar River Pipeline No. 3 from Control Works to the intersection of 18 Avenue E. and
E. Prospect Street
30" intertie between Cedar River Pipelines 2 and 3 in east Olive Street
Cedar River Pipeline No. 4 from Control Works to the West Seattle Pipeline
Cedar Eastside Supply Line (from the Cedar Wye to the intersection of SE 16 St and
145 Place SE)
West Seattle Pipeline from Augusta Gatehouse to Cedar River Pipeline 4
The 8 Avenue S. Pipeline between S. 146th Street and S. 160 Street
The Bow Lake Pipeline (between 8 Avenue S. and CRPL 4, and as relocated outside
runways at Seatac Airport)
The Burien Feeder (in S. 146 Street between 8 Avenue S. and CRPL 4)
The Fairwood Line (between Fairwood Pump Station and Soos Reservoirs)
The 24 -inch discharge pipeline of Lake Youngs Pump Station up to Soos Reservoirs
The 12 -inch discharge pipeline of Lake Youngs Pump Station up to Soos Reservoirs
The 630 head pipeline between Lake Youngs Pump Station and the Cedar River WSD
pump station at the eastern boundary of the Lake Youngs Reservation
50 -Year Declining Block Water Supply Agreement
25
2. Reservoirs, Tanks, and Standpipes, including overflow pipes, all valves, appurtenances, and
disinfection facility located on the premises of each storage facility, unless otherwise noted
Lake Forest Reservoir
Eastside Reservoir
Riverton Reservoir
Maple Leaf Reservoir (excluding Roosevelt Way Pump Station and its suction and
discharge piping, Maple Leaf Tank and 520 zone piping, except where solely serving the
disinfection facility)
Soos Reservoirs
3. Pump Stations, Major Valve Structures, and other Facilities
TESS Junction Pump Station
Lake Hills Pump Station
Maplewood Pump Station
Maple Leaf Pump Station
Bothell Way Pump Station
Fairwood Pump Station
Lake Youngs Pump Station
The Control Works
Augusta Gatehouse
Eastgate Pump Station
The cost of upgrades and replacements of nurvevor tan and meter installations incurred prior to
January 1. 2004 shall be part of the Regional Transmission System. All capital costs of purveyor
tap and meter installations incurred on or after Jannary 1 2004 shall not be part of the Regional
Transmission System except as specified in Section 8.4A. Commencing on January 1. 2004. the
capital cost of purveyor tan and meter installations shall be borne by the purveyor served by the
installation regardless of the cause for the improvements (except as noted in Section 8.4A)
provided that such cause is consistent with AWWA and safety standards and practices.
The facilities include the appurtenances to the transmission lines including but not limited to
rights of way, line valves, system meters and remote automation devices.
50 -Year Declining Block Water Supply Agreement
26
Supply
Program
Communications
Audit Accounting
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Cost Centers Used for Operations Cost Indices
The following costs centers or successor cost centers that capture the direct costs of operation of
Existing Supply Facilities, Existing Transmission Facilities and the 1% Program shall be used as
the indices for operations cost in the Existing Supply Cost Pool, Existing Transmission Cost Pool
and for the 1% Program in the New Supply Cost Pool.
Project
N1203
N3303
N5401
N5401
N5401
N5401
N540I
N5401
N5401
N5403
N5403
N5403
N5404
N5404
N5404
N5404
N5405
N5405
N5405
N5406
N5406
N5406
N5406
N5407
N5407
N5408
N5408
N5409
N5409
145409
145409
N5410
N5410
N5410
N5410
N5410
N5411
N5411
N5411
N5412
N5412
Project Name
Communications Activity Group
Customer Audit
Program Management
Program Management
Program Management
Program Management
Program Management
Program Management
Program Management
Support Services
Support Services
Support Services
Watershed Protection
Watershed Protection
Watershed Protection
Watershed Protection
Facility Management
Facility Management
Facility Management
Watershed Road Maintenance
Watershed Road Maintenance
Watershed Road Maintenance
Watershed Road Maintenance
Watershed Operations Support
Watershed Operations Support
Water Quality Hydrology
Water Quality Hydrology
Public /Cultural Programs
Public/Cultural Programs
Public/Cultural Programs
Public/Cultural Programs
Wildlife Fisheries Programs
Wildlife Fisheries Programs
Wildlife Fisheries Programs
Wildlife Fisheries P...
Wildlife Fisheries Programs
Resource Information Mgmt
Resource Information Mgmt
Resource Information Mgmt
Special Projects
Special Projects
_27_
EXHIBIT VI
Activity
N120304 Purveyor Relations
N330303 Purveyor Audit
N540194 Department Support
14540195 General Expense
N540196 General Management
N540197 Training
N540198 Safety
N540199 Personnel
N540289 Capital Purchase
N540301 Modified Duty
N540302 Procuring/Paying/Receiving
N540303 Vehicle Equipment Downtime
N540401 Hydrological Data Collection
N540402 Fire Protection
N540403 Inspection
N540404 Boundaries
N54050I WS Grounds
N540502 WS Buildings
14540503 WS Facilities Roads
N540601 Grade/Gravel/Ditching
N540602 Bridges/Streams Culvert
/4540603 Roads/RowNegetation Cutting
/4540604 Tolt Roads Streams
14540701 Veh/Equipment Management
N540702 Veh/Equip/Tool Repair
N540801 Water Quality Monitoring
N540802 Hydrological Monitoring
14540901 Recreation Planning
N540902 Management Research
N540903 Watershed Education
N540904 Watershed Public Information
N541001 Program Planning Evaluation
14541002 Interagency/Public Involvement
N541003 Ecological Monitoring Research
N541004 Habitat Species Inventory
N541005 Habitat Enhancement/Restoration
N541101 Program Plan/Evaluation
/4541102 Information Maintenance
N541103 Information Services
N541202 Silviculture
N541205 Land Exchanges/Acquisitions
Program
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Watershed Management
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Project Project Name
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
N5415 Cedar HCP
145415 Cedar HCP
N5416
N5416
N5417
N5418
145418 Cedar HCP
Cedar HCP
Cedar HCP
Cedar HCP
Cedar HCP
N5418
145418
N54I8
N5418
N5418
N5503
N5503
145503
N5503
N5503
145503
N5503
N5504
N5504
N5504
N5505
N5505
N5505
N5506
Cedar HCP
Cedar HCP
Cedar HCP
Cedar HCP
N5418 Cedar HCP
N5418 Cedar HCP
N5418 Cedar HCP
Cedar HCP
Water System Operations
Water System Operations
Water System Operations
Water System Operations
Water System Operations
Water System Operations
Water System Operations
/45503 Water System Operations
Water System Analysis
Water System Analysis
Water System Analysis
Surface Water Trtmnt Rule
Surface Water Trtmnt Rule
Surface Water Trtmnt Rule
Total Coliform Rule Compl.
28
Activity
N541501 ASSESS OF EXPAND FOREST
STAND
N541502 ASSESS EXPAND FOREST
ATTRIBUTE
N541503 AUGMENT FOREST HABITAT
INV
14541504 LONG -TERM FOREST
HABITAT
14541505 OLD GROWTH
CLASSIFICATION
N541506 RIPARIAN RESTOR PROJECT
MONIT
N541507 UPOLAND FOREST RESTOR
PROJ MONT
N541515 GIS DATA COMPATIBILITY
STUDY
N541516 FOREST HABITAT MODELING
/4541517 SPECIE HABITAT RELATION
MODEL
N541601 CRHCP GIS SUPPORT
N541603 CRHCP TECHNICAL SUPPORT
N541701 ROAD MAINTENANCE
N541801 EXPERIMENTAL STREAM
MONITORING
N541802 LONG -TERM STREAM
MONITORING
N541803 AQUATIC RESTORATION
MONITORING
N541804 BULL TROUT SURVEYS
(ADULT)
N541805 BULL TROUT SPAWNING
SURVEY
N541806 BULL TROUT FRY /JUVENILE
SURVEY
Riparian Zone Studies
N541809 BULL TROUT STREAM
DISTRIBUTION
14541810 BULL TROUT REDD
INUNDATION STU
N541811 COMMON LOON MONITORING
N550301 Water Management
N550302 Water System Control
N550303 Anadromous Fishery Mgmt
N550304 SCADA Management
N550305 Highline Well Field
N550306 Morse Lake PS
N550307- SAFETY PROCESS MGMT
COMPLIANCE
N550308 -EPA RISK MGMT
COMPLIANCE
N550401 Eng Analysis/Modeling
N550402 Water Rights Mgmt
N550403 DEMAND METERING
N550501 Monitoring, Reporting Admin
14550502 Cholrination Facilities O &M
14550503 Watershed Management
N550601 Monitoring, Reporting Admin
Program
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Water Quality Supply
Resource Planning
Project
N5508
145508
N5509
N5510
N5510
N5510
145510
N5510
N5510
145511
N5512
N5513
145513
145513
145513
N5513
N5514
Project Name
Lead Copper Rule Compl.
Lead Copper Rule Compl.
Fluoridation Program
Other Reg Comp/Monitoring
Other Reg Comp/Monitoring
Other Reg Comp/Monitoring
Other Reg Comp/Monitoring
Other Reg Comp/Monitoring
Other Reg Comp/Monitoring
Special Projects
Cedar HCP
Cedar HCP
Cedar HCP
Cedar HCP
Cedar HCP
Cedar HCP
WQ Monitoring
N5515 HCP Fisheries
145515 HCP Fisheries
145515
N5515
N5515
145515
HCP Fisheries
HCP Fisheries
HCP Fisheries
HCP Fisheries
145515 HCP Fisheries
145515 HCP Fisheries
N5516 Tolt DBO
N5516 ToltDBO
N5609 Water Resource Habitat I
29
Activity
N550801 Monitoring, Reporting Admin
14550802 Corrosion Trtmnt Facil O &M
N550901 Fluoridation Program O &M
N551001 Otr Reg/Operational Analysis
N551002 Disinfection By- Product Rule
14551003 Limnology
N551005 WQ Lab
N551006 DW Reg Dev App Research
N551007 Public Information/Notification
14551104 LIMS QA/QC
N551201 INTERIM CHINOOK COHO
/4551301 HCP STREAMFLOW GAUGING
N551302 SWITCHING CRITERIA STUDY
/4551303 STEELHEAD REDD
MONITORING
14551304 CHINOOK STUDIES
Salmonid Studies
N551403 DRINKING WATER QUALITY
MONITOR
/4551501 FRY CONDITION AT RELEASE
14551502 FRY MARKING
EVALUATION
/4551503 FRY TRAPPING COUNTING
N551504 FISH HEALTH
14551505 SHORT -TERM FRY REARING
N551506 LAKE WASHINGTON
PLANKTON STUDY
14551508 ADULT SURVIVAL
DISTRIBUTION
14551509 PHENOTYPIC GENETIC
STUDY
N551601- CONTRACTOR PAYMENTS
14551603- MANAGEMENT COSTS
sues N560903 -ESA
Transmission
Program Project
Water Operation N6540
Water Operation N6540
Water Operation N6541
Water Operation N6541
Water Operation N6542
Water Operation N6542
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6543
Water Operation N6544
Water Operation N6544
Water Operation N6545
Water Operation N6546
Water Operation N6546
Water Operation N6547
Water Operation N6548
Water Operation N6549
Water Operation N6549
Water Operation N6549
Water Operation N6549
Water Operation N6549
1% Program
Program
Community Services
Project Name
WT Headwork/Storage
WT Headwork/Storage
WT Transmission Pipeline Maint
WT Transmission Pipeline Maint
WT Value Op/Maint Water Tran
WT Value Op/Maint Water Tran
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Grounds/Roads/ROW
WT Facility Maintenance
WT Facility Maintenance
WT Castings
WT Customer Services
WT Customer Services
WT Damage by Others
WT Transmission Shops
WT General Expenses
WT General Expenses
WT General Expenses
WT General Expenses
WT General Expenses
Project Project Name
30
Activity
N654001 Program Maintenance
N654002 Event Driven Repairs
N654101 Program Maintenance
N654102 Event Driven Repairs
N654201 Program Maintenance
N654202 Event Driven Repairs
N654301 Grade/gravel roads P
N654302 Grade/gravel roads E
N654303 Bridges/culverts P
N654304 Bridges/culverts E
N654305 Fences/gates P
N654306 Fences/gates E
N654307 Mow ROW P
N654308 Mow ROW E
N654309 Mow Other
N654401 Program Maintenance
N654402 Event Driven Repairs
N654501 Casting Adjustments
N654601 Communications/Dispatch
N654602 Locating/Marking
N654701 P/L/ROW/Facility
N654801 Shops/Fabrication
N654905 Tools/small equipment
N654906 Standy
N654907 Truck Inventory
N654908 Downtime Job Related
N654909- DISASTER -EMERG
RESPONSE
Activity
N5303 Resource Conservation N53030I 1% Conservation
Cascade Sub- regional System
EXHIBIT VII
The facilities included in this Exhibit incorporate all appurtenances including but not
limited to rights of way. line valves. system meters. and remote automation devices.
Facilities used by Cascade:
The NE 8 Street Feeder, from the Cedar Eastside Supply Line to the Bellevue pump
station near the intersection of 151 PL NE and NE 8 Street
The Bel -Red Road Feeder, from the Cedar Eastside Supply Line to the Bellevue
Point of Delivery at the intersection of Bel -Red Road and 132 Ave NE
The NE 24 Street Feeder, from the Cedar Eastside Supply Line to the Bellevue
Point of Delivery near the intersection of NE 24 Street and 132 Ave NE
The 326 zone feeder in West Marginal Way from the West Seattle Pipeline to the
Tukwila Point of Delivery at '-'==:4:7
Tukwila spurs
AN -rne__ _'tc. etc. for Cascade P ints of Delivers
Eastside Sub- regional Transmission Facilities shared by Cascade:
SEGMENT 1 Includes use by Bellevue, Coal Creek.. Mercer Island. and Seattle
The Portion of the of the original Mercer Island Pipeline from the tee off the Cedar
Eastside Supply Line in Factoria Boulevard SE to the west flange of the main line tee at
the east end of the 16 -inch Mercer Slough Bridge Pipeline (30- inchl.
SEGMENT 2 Includes use by Bellevue, Mercer Island. and Seattle
1. The portion of the of the original Mercer Island Pipeline from the west flange of the
main line tee at the east end of the 16 -inch Mercer Slough Bridge Pipeline to the west
flange of the 20 -inch valve west of the Enatai service to Bellevue (30- inchl.
2. The entire 16 -inch Mercer Slough Bridge Pipeline (16- inchl.
New. ungraded or replaced tan and meter installations shall not be part of the Cascade
Sub regional Transmission Facilities. The cost of such imnrovements shall he borne by
the wholesale customer served by the installation regardless of the cause for the
imnrovements nrovided that such cause is consistent with AWWA and safety standards
and practices.
Seattle may from time to time eliminate facilities from this list provided that it secures
the written consent of Cascade in the event that Cascade is served by a tap or meter
installation on the facility being eliminated. Seattle shall provide Cascade with 180 days
prior written notice of any proposed change
31
EXHIBIT VIII
Allocating Costs and Setting Rates for Cascade Sub region
In any year. Cascade Sub regional Customer means a Cascade Member that is served in
whole or in part by a tap or meter installation from a facility listed in Exhibit VII or
successor (replacement) facility.
For those facilities within the Eastside Sub regional System listed in Exhibit VII. costs
will be allocated annually based on consumption by each party within each segment.
Costs will be allocated based on Peak 7 Dav flows through each facility segment. In the
event that Peak 7 Dav flow data is not available. Peak Month flows may be substituted.
Cascade's allocation of Eastside Sub regional System costs shall be based on the flows of
Cascade Sub regional Customers.
Cascade will be allocated 100% of the costs associated with all other facilities listed in,
Exhibit VII.
All Cascade Sub region costs shall be added to and billed with other annual Cascade
costs consistent with Sections 8.8 B &C. and trued consistent with Section 8.8D.
32
U J l/ Committee chair approval
Utilities Committee
SJuly 8, 2003
Page 2
4. Cascade Water Alliance !Iodate After many months of wrangling between CWA and
City of Seattle over a block contract, the two agencies have agreed on a 50 year declining
water block. The amount of water CWA gets from Seattle will continue for 50 years, but there
will be less water from Seattle each year of the contract. The CWA has other issues, too, such
as buying the Bellevue/Issaquah pipeline, getting Lake Tapps water rights, getting an
agreement to buy water from Tacoma, a "wheeling" agreement with Seattle for use of their
pipes, and a budget for next year. Whether to pursue CWA as our major water supplier in
future years instead of Seattle is a very big decision. Pam L said she appreciated that even
though we've been in CWA for four years she appreciated that the city could still decide that
was not a good option for us for future water. Much depends on estimating the stability of
CWA's future water resources, or Seattle's willingness to serve outside the city of Seattle.
There is not a clear answer to these questions, so it's an estimate on anyone's part.
Recommend issue and Agreement to COW.
Meeting Date
4/14/03
4/21/03
7/14/03
Meeting Date
7/14/03
COUNCIL AGENDA SYNOPSIS
Initial.
I Meeting Date Prepared by I Mayor's review I Council review I
I 7/14/03 I I AAL. I 0'C. I
I 1 I I
I I I
I I
ITEM INFORMATION
CAS Number 03-050 I Original Agenda Date: 4/14/03
Agenda Item Title: Ordinance Fixing the Amount of Future Council Compensation
Original Sponsor: Council x Admin.
I Timeline:
Sponsor's Summary: This ordinance was written in the update of the Council operating procedures. It will
remain in the TMC directly following the procedures, but remain a separate ordinance
for ease in amending in future years.
Recommendations:
Sponsor: Recommend ordinance for adoption
Committee: Finance and Safety recommended ordinance April 8, 2003
Administration: Same as sponsor
Cost Impact (if 2004- $12,540
R)
Fund Source (if known) 000 General Fund
COW
Regular Meeting
RECORD OF COUNCIL ACTION
Action
APPENDICES
Attachments
Memo from L. Lauterbach dated 7/8/03
Memo from Foster Pepper Sheffelman dated 6/3/03
Memo from Linda Grage to Alan Doerschel dated 5/30/03
Memo from Bob Noe and David St. Pierre
Regular Meeting Minutes 4/21/03
Draft Salary Ordinance
ITEM No.
To: City Council
From: Lucy Lauterbach
Date: July 8, 2003
Subject: Council Salary Ordinance
This ordinance originally came to you in the spring after going through the Finance and Safety
Committee. After discussion at a COW, you sent it to a Regular Meeting in late April. Several
questions about salary came up at that point, including whether the benefits in the ordinance
could be raised mid term, and whether benefits would be taxable. The City Attorney had opined
benefits were salary, so should not be raised.
The Council decided to ask an outside attorney firm to get a final answer to the question of this
issue. At the same time, Linda Grage in Finance also asked the IRS informally for an opinion of
whether the benefits were taxable. The answer she received was they are not taxable as salary.
Steve DiJulio of Foster Pepper Sheffelman is a highly respected attorney who has made
presentations at AWC in the past. He has written an opinion that the funds are not salary. It
should be noted that the firm had to research this issue, as they did not have a ready answer to
this question. He did use the City Attorney's information in his research on the issue.
If the Council is comfortable with the planned increases, you are legally free to pass the
ordinance. Please note that this ordinance is put before the Operating Procedures Ordinance so
that there will not be any time when council does not have a salary (the Operating Procedures
repeal all of the salary issues previously passed).
Lucy Lauterbach
City of Tukwila
6200 Southcenter Blvd
Tukwila, WA 98188
Dear Ms. Lauterbach
F O S T E R P E P P E R S H E F E L M A N P L L C
A T T O R N E Y S A T LAW
June 3, 2003
Re: Medical Expense Reimbursement for Council Members
We have been asked whether the City Council may accept increases in the
medical expense reimbursements paid under the City's direct reimbursement
program.' Based on our review of this matter, it does not appear that such payments
would constitute "compensation" as that word is used in the state constitution. As a
result, the city council members would not be constitutionally prohibited from
receiving an increase in the amount paid under the Program during their current
terms of office. 2
The Washington Constitution prohibits elected municipal officers from
increasing their compensation during their term of office. Article XI, §11 of the
Washington Constitution directs that:
The salary of any county, city, town, or municipal officers shall not be
increased except as provided in section I of Article XXX or diminished after
his election, or during his term of office; nor shall the term of any such
officer be extended beyond the period for which he is elected or appointed.
In addition, Article XXX, §1 provides as follows:
2 We are aware of the existence of other legal positions to the contrary.
S0384322.03
Direct Phone
(206) 447-4692
Direct Facsimile
(206) 749 -2092
E -Mail
r ie hj@ to s ter. tom
1111 THIRD
AVENUE
Suite 3400
SEATTLE
Washington
96t0s -3199
Telephone
(106)447-4400
Facsimile
(1061447
Website
W W W. FOSTER. COM
ANCHORAGE
Alaska
PORTLAND
Oregon
SEATTLE
1 We understand the City has from time -to -time adopted by ordinance such a plan or progran`Ta' "'g "n
"Program as part of its provision of health care coverage for officers and employees. 5eo RA NE
Washington
Lucy Lauterbach
June 3, 2003
Page 2
The compensation of all elective and appointive state, county, and municipal officers who
do not fix their own compensation, including judges of courts of record and the justice
courts may be increased during their terms of office to the end that such officers and
judges shall each severally receive compensation for their services in accordance with the
law in effect at the time the services are rendered.
Read together, these two provisions allow increases in salary or compensation during the current
tern to only those officers who do not set their own compensation. Otherwise, they must
complete their term of office before receiving any increase in salary or compensation.
Washington courts have consistently construed the term "salary" in the constitution as the
framers' effort to describe the compensation to be paid an officer out of the public treasury,
based on the time, rather than the amount, of the officer's service. "Benefits" that do not result
in direct and immediate economic gain to the elected officials for services rendered would not
3 AGO 1992 No. 8. This AGO concluded that a prior version of RCW 41.04.190 applied only to
"county elected officials." At the time, RCW 41.04.190 provided:
The cost of any such group policy or plan to any such public agency or body shall not be
deemed additional compensation to the employees or elected county officials covered
thereby ...(Emphasis added)
In 1996, the Legislature thoroughly amended RCW 41.04.190. As a result, AGO 1992 No. 8 has
limited use in interpretation of the statute.
4 See, e.g., State ex rel. Stratton v.. Maynard, 35 Wash. 168, 175, 76 P. 937 (describing
"salary" as "the amount of money which the state would have to pay out of its treasury for his
[the attorney general's] services State ex rel. Banker v. Clausen, 142 Wash. 450, 457, 253 P.
805 (1927) (reaffirming that the framers' intent in adopting various provisions relating to
officers' salaries was to eliminate system of fees and to fix officers compensation "in definite
amounts which should be well known, and thus prevent any further contingent or unknown profit
to any officer State ex rel. Funke v. Board of Commissioners, 48 Wash. 461, 466, 93 P. 920
(1908) (holding that a five- dollar- per -day payment was "compensation" as it was "a fixed sum
with reference to a specified time, is not variable during the time that official duties require his
services, and is paid from the public treasury as that of other officers Franklin Cty. V. Barnes,
68 Wash. 488, 491, 123 P. 779 (1912)( "There can be no question but that it was the intent of the
framers of the Constitution that the compensation of salaried officers should be a fixed salary for
their time, and not by fees for specific services
50384322.03
Lucy Lauterbach
June 3,2003
Page 3
appear to be included within the definition of "salary" or "compensation As noted in AGO
1996, No. 2:
[C]ourts in other states have held that a contribution by a state or a county to match an
elected official's contribution to the federal social security fund is not "compensation"
within the meaning of various constitutional provisions which prohibit increases in
compensation during the term in which the official is elected. "6
Moreover, the Legislature has clearly stated that the cost of hospitalization and medical
aid provided to the employees or elected officials of a public agency is not compensation. RCW
41.04.180 authorizes counties, municipalities, or other political subdivisions of the state to
provide programs for hospitalization and medical aid for their employees:
Any countv. municipality. or other political subdivision of the state acting through its
principal supervising official or governing body may, whenever funds shall be available
for that purpose provide for all or a Hart of hospitalization and medical aid for its
emnlovees and their dependents through contracts with regularly constituted insurance
carriers or with health care service contractors as defined in chapter 48.44 RCW or self
insurers as provided for in chapter 48.62 RCW, for grown hospitalization and medical aid
policies or nlans...
The City's direct reimbursement program is a permissible group hospitalization and medical aid
policy or plan pursuant to RCW 41.04.180. RCW 41.04.190, as amended in 1996, provides that
the cost of these programs to the county, municipality, or other political subdivision is not
additional compensation to their employees or elected officials:
5 AGO 1996 No. 2.
6 AGO 1996 No 2, citing State ex rel. Patteson v. Sims, 65 S.E.2d 730 (W. Va. 1951); Opinion of
the Justices, 69 So.2d 702 (Ala. 1954).
7 RCW 41.04.180 (Emphasis added).
50384322.03
The cost of a policy or plan to a public agency or body is not additional compensation to
the emnlovees or elected officials covered thereby. The elected officials to whom this
section applies include but are not limited to commissioners elected under chapters
28A.315, 52.14, 53.12, 54.12, 57.12, 70.44, and 87.03 RCW, as well as any county
elected officials who are provided insurance coverage under RCW 41.04.180. Any officer
Lucy Lauterbach
June 3, 2003
Page 4
authorized to disburse such funds may pay in whole or in part to an insurance carrier or
health care service contractor the amount of the premiums due under the contract s
Read together, RCW 41.04.180 authorizes a city to provide for all or a part of hospitalization and
medical aid for its officers and employees through a variety of policies and plan, including direct
reimbursement programs. RCW 41.04.190 makes it clear that the cost of such policies or plans
"is not additional compensation to the employees or elected officials covered thereby."
This interpretation is similar the policy of the Internal Revenue Service that direct
reimbursement of medical expenses does not constitute "income" for federal tax putposes. As
the American Payroll Association has observed:
Benefits received by an employee under an accident or health insurance plan that directly
or indirectly reimburses the employee for medical expenses incurred by the employee and
his or her spouse and defendants (by paying the employee or the medical care provider)
are also not included in the employee's income... The exclusion for reimbursed medical
care expenses applies only up to the amount actually spent or incurred by the employee.
Any reimbursements in excess of that amount are taxable income to the employee.
The IRS requires that employer reimbursements must be made under a "plan" that must be
written or otherwise made known to employees. Once the existence of a plan is established, the
tax exclusion for employer reimbursements if the plan is set up to benefit employees and their
dependents. It appears that the City Program, adopted by ordinance (and as revised from time
to -time) is a "plan" for such purposes.
8 RCW 41.04.190 (Emphasis added). The phrase "public agency or body" in RCW 41.04.190 is
synonymous with the "county, municipality, or other political subdivision. of the state" referred
to in RCW 41.04.190. See, accord. 1992 AGO No. 2 (concluding that the cost of providing
health insurance benefits to county elected officials is not additional compensation to those
officials).
9 IRC §105; §213(c)(1). The City of Tukwila has independently confirmed with representatives
of the IRS that such reimbursement is not compensation for federal tax purposes. The IRS has
been asked for written confirmation, but it is unlikely that the IRS will do so for some months.
1° American Payroll Association, The Payroll Source, §4.1 -2 (2002 Ed.).
11 American Payroll Association, The Payroll Source, §4.1 -2 (2002 Ed.) citing Social Security
Handbook, §1311-§1312.
50384322.03
Lucy Lauterbach
June 3, 2003
Page 5
We believe that a legitimate foundation exists for the conclusion that reimbursement of
an employee's actual medical expenses is not "salary" or "compensation" as those terms are used
by the state constitution. Moreover, RCW 41.04.190 clearly states that the costs of
hospitalization and medical aid provided by a city to its employees pursuant to a policy or plan
does not constitute additional compensation for an elected official. It would not appear that any
constitutional obstacles exist that would prevent the city council from accepting increases in the
medical expense reimbursements paid under the City's direct reimbursement program.
50380322.03
We trust the foregoing is responsive to your inquiry.
Very truly yours,
FOSTER PEPPER SHBFELMAN PLLC
f.r
P. Stephen DiJulio
City of Tukwila
6200 Southcenter Boulevard a Tukwila, Washington 98188
MEMORANDUM
To: Alan Doerschel, Finance Director
From: Linda Grage, Fiscal Coordinator 4, J
Date: May 30, 2003
Subject: Council Medical Benefits
I have researched the taxability issue of the council medical benefits given to them per
Ordinance 1942. To the best of my knowledge and through the information I have available to
me, I feel that the benefits for healthcare, including medical, dental, and vision are clearly not
taxable for Federal Income tax, FICA, and Medicare. We can continue reimbursing the Council
member for direct expenses, or for insurance premiums.
We do have an issue with the reimbursement of life insurance and disability premiums.
According to the Payroll Source, the life insurance benefit would be taxable. Disability
insurance appears not to be covered by the Ordinance and may also be taxable. Copies from the
Payroll Source are attached for your review.
In order for a health insurance plan to not be taxable for Social Security and Medicare, the plan
must be documented in writing. The Ordinance should be enough documentation to meet that
requirement However, the Ordinance should be revised to exclude life and disability
insurance. Also, I would recommend specific language from the Internal Revenue Code to
define what healthcare expenses are. IRC §105; §213(c)(1), defines medical care as "the
diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting
any structure of function of the body." Please see attached.
Also, I have attached a summary of the medical expenses reimbursed to the council for the
years 2002 and 2003 by category (medical, dental, life, etc). This should help in deciding what
to do on this matter. We could go as far as getting a "letter ruling" from the IRS, but they take a
considerable amount of time and effort. Let me know if you need anything else from me.
Finance Department
433 -1836
The Payroll Source
Health maintenance organizations (HMOs). An HMO is a health care system that provides health care
but does not directly pay for it, as does a health insurance carrier. The HMO provides these health care ser-
vices on a prepaid basis with employers contributing to the plan on behalf of employees choosing the HMO
option. (Employees also may be required to contribute if contributions are required from employees for non-
HMO plans.) While HMOs may be attractive to employees because they generally do not involve deductibles
or complex claim forms, they limit members to using HMO doctors and hospitals.
There are two types of health maintenance organizations. Under the traditional scheme, the HMO has
its own health care facility or facilities, and patients (e.g., employees and their families) have to go there to
receive medical services. The other type of HMO is the Individual Practice Association, under which physi-
cians sign up with a health care group and patients have the option of choosing their own physicians among
those in the group, rather than being required to go to the HMO facility and seeing the first available physi-
cian.
A product now being offered by many HMOs is the Point -of- Service (POS) plan. The POS option allows
covered employees and their dependents to use non -HMO health care providers, with the inclusion of
deductibles and insurance copayments. Employees and their dependents must select a primary care physi-
cian from the POS network, who acts as a gatekeeper and oversees the delivery of all health care services.
But the employee can choose a physician contrary to the primary care physician's recommendation or go ini-
tially to a physician outside the network subject to deductibles and reduced levels of reimbursement. Some
HMOs are now also offering `open access" POS plans, which do not require an employee to choose a primary
care physician from the POS network.
Preferred provider organizations (PPOs). A PPO is a health care delivery system that gives participants a
choice of a higher level of benefits and lower out -of- pocket costs if they use doctors who are part of the PPO's
"network." If they use nonnetwork providers, the employees' costs, in terms of deductibles and copayments,
are significantly higher. Participants may or may not have to choose a "primary care physician," who must
approve or authorize all of their health care before the higher level of benefits is provided.
4.1 -2 Tax Treatment of Contributions and Benefits
Generally, contributions made by an employer to an accident or health insurance plan providing insur-
ance for its employees and their spouses and dependents are not wages and are not subject to federal income
tax withholding or social security, Medicare, and federal unemployment (FUTA) taxes. On the other hand,
contributions made by employees from their wages for health insurance must be included in their income for
income tax withholding and employment tax purposes unless the contributions are made through a valid
salary reduction plan under IRC §125 (see the discussion of cafeteria plans at Section 4.5).
The rules are not so clear when an employer (without a §125 plan) gives its employees a choice whether to
receive a portion of their compensation as wages or have the amount paid by the employer to a health insur-
ance carrier to cover premiums. The IRS's position is that such amounts must be included in the employees'
income and are subject to federal income tax withholding and social security, Medicare and FUTA taxes no
matter what choice is made. A federal district court, however, said such salary reduction amounts are not
included in income because there is no basis for distinguishing between amounts paid by an employer above
and beyond an employee's salary for health insurance and amounts paid pursuant to a salary reduction plan.
The IRS has also ruled that, where an employer reduces its employees' salaries, uses those amounts to
pay for health insurance premiums, and then reimburses the employees for the amount of the salary reduc-
tion, the reimbursements are not excluded from income.
Where an employer's plan would allow the employer to convert a retired employee's unused sick time into
a cash equivalent that the employer would then use to purchase additional medical insurance coverage for
the retiree, the amount converted would not be income to the retired employee, according to the IRS.
1. Inc §106(a); IRS Reg. §1.106 -1.
2. PLR 9406002; Express Oil Change, Inc. v. U.S., 25 F.Supp.2d 1313 (ND Ala, 1996); ailed 162 F.3d 1290 (11 CA, 1998).
3. Rev. Rul. 2002 -3, 2002-3 IRE 316; Rev. Rul. 2002 -80, 2002 -49 IRB 925.
4. LTR 200222019, 2.27 -02.
4 -4
Section 4: Health, Accident, and Retirement Benefits
Benefits received by an employee under an accident or health insurance plan that directly or indirectly
reimburses the employee for medical expenses incurred by the employee and his or her spouse and depen-
dents (by paying the employee or the medical care provider) are also not included in the employee's income.
To qualify for this exclusion, the employee's expenses must be for medical care, defined by the Internal
Revenue Code as "the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of
affecting any structure or function of the body.
In 2002, the IRS ruled that medical care includes radial keratotomy surgery to improve eyesight 6 as well
as amounts paid for participation in a weight -loss program as treatment for a specific disease diagnosed by
a physician, including obesity.? The cost of diet foods is not considered a medical care expense because the
diet foods are substitutes for other food that would normally be consumed to satisfy nutritional require-
ments.
PLASTIC SURGERY IS NOT MEDICAL CARE The exclusion for medical care expenses does
not apply to plastic or "cosmetic" surgery that is designed to improve a person's appearance with-
out promoting the proper function of the body or preventing or treating an illness or disease.
There are exceptions where the surgery is needed to correct a deformity, treat a disfiguring dis-
ease, or heal a personal injury suffered during an accident or other trauma.
The exclusion for reimbursed medical care expenses applies only up to the amount actually spent or
incurred by the employee. Any reimbursements in excess of that amount are taxable income to the employee.
Any amounts reimbursed for an employee's expenses incurred before the plan initially takes effect must be
included in the employee's income
Social security, Medicare, and FUTA requirements. To exclude employer contributions from
employment taxes (social security, Medicare, and FUTA), the payments must be made under a plan. A plan
can be shown by one of the following:
1. the plan is written or is otherwise made known to employees;
2. the plan is referred to in an employment contract (e.g., collective bargaining agreement) involv-
ing the employees;
3. employees contribute to the plan;
4. employer contributions are made to a fund that is separate from the employer's salary account;
or
5. the employer is required to make the contributions.'°
Once the existence of a plan is established, the social security, Medicare, and FUTA tax exclusion for
employer contributions will apply if the plan is set up to benefit employees and their dependents. Payments
to the plan by an employer will not be excluded if the plan benefits dependents only.'
Living together is not enough. Health insurance plan contributions and benefits are not excluded
from income if made or received on behalf of an employee's "life partner," "nonspouse cohabitant" or domes-
tic partner unless that person is recognized as a spouse under state law. If the employee's domestic partner
is of the same sex as the employee, the partner does not qualify as the employee's spouse for tax purposes,
5. me *105; §213(cXl).
6. LTR 200226003, 3-7-02.
7. Rev. Rul. 2002.19, 2002 -16 IRB 779.
8. IRC §213(dX9).
9. Rev. Rul. 2002 -58, 2002 -38 IRS 541.
10. Social Security Handbook, §1311; §1312.
IL IRC §3121(a)(2); §3306(bX2); IRS Reg. §31.3121(§X2) -1; §31.3306(6)(2) -1.
12. PLR 9034048, 5- 29 -90; LTA 9603011, 10-18-95.
4 -5
The Payroll Source
Whole life insurance. An employer may purchase individual whole -life or straight -life insurance poli-
cies for employees (usually done for key managers) or pay the premiums on policies already owned by the
employees. A straight -life policy provides two types of benefits:
Death benefit benefit is payable at the death of the insured employee equal to the face
amount of the policy.
Savings portion of each premium payment is applied toward the savings segment of the poli-
cy. As premiums are paid, this "cash surrender value" of the policy increases. Employees may
be allowed to borrow against the cash surrender value or withdraw from it. A return is also
earned from the insurance carrier which may be reflected as additional increases in the cash
surrender value, additional insurance coverage, or a payout of cash dividends.
If the proceeds of the policy are payable to the employee's designated beneficiary, the value of the
straight -life policy that is paid for by the employer is included in income and subject to federal income tax
withholding.fi If the employer is the sole beneficiary of the policy or the employee pays the premiums with
after -tax dollars, the value of the policy is not included in income. If the insurance coverage is part of a plan
intended to benefit employees or their dependents, the value of the policy is not subject to social security,
Medicare, or FUTA tax.fi
Calculating taxable income. If the proceeds of the policy are payable to the employee's beneficiary, the
amount included in the employee's income is the sum of:
the increase in the policy's cash surrender value for the year (if the employee has a vested right
to the cash value), and
the "reasonable net premium cost" of the current life insurance protection (the death benefit
payable minus the cash surrender value at the end of the year).
Split dollar life insurance. There is a way for the employer and employee to share the cost of the
employee's ordinary individual life insurance policy split- dollar life insurance. Under such an arrange-
ment, the employer pays that part of the annual premium representing the increase in the cash surrender
value of the policy during the policy year. The employee pays the remainder of the premium, if any. As the
cash surrender value increases, the employee's premium costs decrease. At the employee's death, the
employer is entitled to the cash surrender value of the policy, while the employee's designated beneficiary is
entitled to the rest of the proceeds.
The amount that must be included in the employee's income each year is the amount of the yearly premi-
um cost for the employee's current life insurance protection that the employee does not have to pay because
it is being paid by the employer from the increase in the cash surrender value 6 This includible amount is
equal to the one -year term cost of the current (declining) life insurance protection minus any amounts paid
by the employee. This cost is determined by multiplying the amount of current life insurance protection
(face value minus cash value) by the rate per $1,000 and then dividing by 1,000. Any additional benefits the
employee receives as a result of the arrangement, such as policyholder dividends, must also be included in
income. The amount includible in income is subject to federal income tax withholding, but not to social
security, Medicare, or FUTA tax if the insurance is provided under a plan to benefit employees or their
dependents 6
Before 2002, the reasonable net premium cost per $1,000 of current insurance for one year had been
determined by referring to the "Uniform Premiums Table II" provided by the IRS (referred to as P.S. 58
rates).
60. IRS Reg. §1.61- 2(d)(2)(ii).
61. IRC §3121(aX2XC); §3306(bX2XC); IRS Reg. §31.3121(a) -1; §31.3306(b) -1.
62. Rev. Rul. 64 -328, 1964 -2 CB 11; Rev. Rul. 66 -110, 1966 -1 CB 12; Rev. Rul. 78 -420, 1978 -2 CB 67.
63. IRC §3121(a)(2)(C); §3306(b)(2)(C); IRS Reg. §31.3121(a) -1; §31.3306(b) -1.
64. Rev. Rul. 55 -747, 1955 -2 CB 228; Rev. Rul. 66 -110, 1966 -1 CB 12.
3 -26
MICHAEL R. KENYON
MARGITA A. DORNAY
LISA M. MARSHALL
ROBERT F. NOE
BRUCE L. DISEND
SANDRA S. MEADOWCROFr
TO: City Council
GUIDANCE:
G: \City Attorney \David\M E00017- dbs.doc/COT /1 /29/03
KENYON DORNAY MARSHALL, PLLC
THE MUNICIPAL LAW FIRM
11 FRONT STREET SOUTH
ISSAQUAH, WASHINGTON 98027 -3820
(425) 392-7090
(206) 628-9059
FAX (425) 392 -7071
CITY OF TUKWILA
MEMORANDUM
CC: Mayor Mullet
John McFarland
Alan Doerschel
FROM: Bob Noe David St.Pierre, City Attorney's Office
DATE: January 29, 2003
RE: Medical Expense Reimbursement for Council Members
SERVING WASHINGTON CITIES SINCE 1993
ELIZABETH A. ABBOTT
STEVE C. KARI.MI
STEPHEN R. KING
HEIDI L. BROSIUS
DAVID B. ST.PIERRE
DARIN H. SPANG
Council President Carter, through Lucy Lauterbach, has requested our opinion on whether
or not there is any legal uncertainty "gray area over the question of whether Tukwila's council
members may receive an increase in the amount of their direct reimbursement for medical expenses
during their current terms of office, in light of MRSC's opinion that council members cannot
receive such an increase.
It is our understanding that Tukwila council members may receive direct financial
reimbursement from the city of up to $3,400 per year upon presentation of receipts for council
member medical expenses. It is also our understanding that only one council member has opted to
receive group medical insurance benefits from the city vice participating in this direct financial
reimbursement plan. It is the direct financial reimbursement that is the subject of this
memorandum.
It is our opinion that there is a low probability that legal uncertainty exists "i.e. no gray
area as to the prohibition against Tukwila's council members receiving an increase in the
amount of their direct reimbursement for medical expenses during their current terms of office.
Though we believe MRSC's analysis of the question was flawed, it is our opinion that their
conclusion was correct, but for other reasons.
January 29, 2003
Page 2
ANALYSIS:
Medical "expenses" of council members are "benefits" and not business- related expenses,
which can be fully reimbursed pursuant to council policies and state authority. Hoppe v. State. 78
Wn.2d 164, 469 P.2d 909 (1970). "Benefits" received by elected city officials are considered part of
the elected officials "compensation." Id. Our state constitution prohibits elected municipal officers
from increasing their compensation during their term of office. WA Const. Art. 11, Sec. 8.
However, where the state legislature specifically declares a benefit to "not' be
compensation, then the courts will not view any increase in such a benefit as a violation of the state
constitution. AGO 1992 No. 8 and No 8 Addendum (to Supreme Court Justice Talmage)
RCW 41.04.190 was passed by the state legislature to allow local governments to take
advantage of the cost savings associated with group insurance policies or plans when providing
for benefits for their elected officials by declaring such costs `not' additional compensation for
such elected officials. Id. However, the legislature had the opportunity to declare direct
reimbursement plans to "not" be compensation, but they did not take advantage of that
opportunity.
Our Supreme Court has stated that when a statute speaks in specific terms, an implication
arises that omitted terms were not intended to be included within the scope of the statute:
Under "expressio unius est exclusio alterius," a canon of statutory
construction, to express one thing in a statute implies the exclusion of the
other, i.e. omissions are deemed to be exclusions.
In re Williams, 147 Wn.2d 476, 55 P.3d 597 (2002).
Consequently, the declaration of what constitutes "not" compensation under RCW
41.04.190 applies specifically to group insurance policies or plans and not to other mechanisms
such as direct reimbursement.
We conclude that if the state legislature had intended that other such mechanisms, such as
direct reimbursement, be declared "not" to be compensation then the legislature would have
stated so. Because they did not so state, we conclude that the state legislature intended that local
governments could take advantage of savings associated only with group insurance policies or
plans and not other mechanisms, regardless of the similarity in financial cost to the city.
Tukwila's direct reimbursement mechanism for council members is NOT a group
insurance policy or plan. Regardless of the financial cost similarity between Tukwila's direct
reimbursement mechanism for council members and council member coverage under a Tukwila
group policy, the direct reimbursement mechanism constitutes compensation where coverage
under a Tukwila group policy would not be compensation.
Consequently, whereas increasing a council member' s group policy coverage levels
during that member's term in office would not be constitutionally proscribed, increasing a
G: \City Attorney \David\ME00017- dbs.doc/COT /01/29/03
January 29, 2003
Page 3
council member's amount of medical expense benefit through direct reimbursement is
constitutionally prohibited.
Finally, it is our opinion that the attached opinion of MRSC reached the correct
conclusion but for the wrong reasons. First, it is obvious that MRSC did not understand that
Tukwila's direct reimbursement mechanism for council members was not an insurance policy or
plan. Consequently, MRSC was analyzing the wrong question. Second, MRSC's analysis (not
prepared by MRSC's legal department) of the wrong question was flawed in our opinion and
showed a lack of research into the recent (as of the year 2000) legal references (see AGO 1992
No. 8 and No. 8 Addendum). Thus, contrary to MRSC's analysis, it is our opinion that the single
council member that opted to receive coverage under the Tukwila group insurance policy is NOT
receiving compensation and that member's policy levels can be increased during that member's
term of office without violating the state constitution.
CONCLUSION:
It is our opinion that Tukwila's council members are constitutionally prohibited from
receiving an increase in the amount of their direct reimbursement for medical expenses during
their current terms of office. It is also our opinion that there is a low probability that legal
uncertainty exists "i.e. no gray area as to this prohibition.
G: \City Attorney \David\ME00017- dbs.doc /COT/01/29/03
From: "Byron Katsuyama" <bkatsuyama @mrsc.org>
To: <Ilauterbach @ci.tukwila.wa.us>
Date: 1/24/03 10:21 AM
Subject: MRSC Research Request
Lucy,
Here is a copy of the response that we gave to Alan Doerschel, Finance
Director, Tukwila, in 2000:
RE: Whether city councilmembers may receive during their current terms
of office an increase in the amount of medical expense reimbursement.
No, the proposed increase would be considered additional compensation,
which may not be increased during the councilmembers' terms of office,
regardless of how RCW 41.04.190 is interpreted. The proposed plan would
increase the monetary amount for which councilmembers can be reimbursed
for medical expenses such as pharmaceuticals, health care, dental and
vision care, and health insurance premiums. RCW 41.04.190, amended in
1992, provides in relevant part as follows:
The cost of a policy or plan to a public agency or body is not
additional compensation to the employees or elected officials covered
thereby. The elected officials to whom this section applies include but
are not limited to commissioners elected under chapters 28A.315, 52.14,
53.12, 54.12, 57.12, 70.44, and 87.03 RCW, as well as any county elected
officials who are provided insurance coverage under RCW 41.04.180.
We have opined in the past that it is uncertain whether this applies to
city elected officials. See, e.g., Inquiry No. 94 -0624, Richland. I
contacted Brian Buchholz, assistant attorney general who advises the
state auditor's office, to see if they had any new opinion on the issue
of whether this statute applies to city elected officials. He opined,
based on the final bill report contained in the 1992 Legislative Digest,
that the 1992 amendment was intended to apply only to the elected
officials of special districts. The statute references specifically
only those RCW chapters dealing with special districts and the bill
report states as part of the summary regarding the 1992 amendments (ESHB
1150, Ch. 146, Laws of 1992):
The cost of group hospitalization and medical insurance coverage
is not additional compensation for elected officials of special
districts.
So, it is probably best for MRSC to advise that this statute would
likely not be interpreted to apply to city elected officials.
Even if this statute were interpreted to apply to city elected
officials, it would not apply in this instance because the city would
not be paying for the cost of group hospitalization and medical
r-r
JAN 2 7 2003
insurance coverage. Rather, it would be reimbursing for medical and
other health care related expenses.
We also note that the 2002 Washington Legislature considered but did not
pass HB 2508 which would have extended the authorization in RCW
41.04.190 to city elected officials. While this is certainly not
conclusive, it does support the interpretation that city officials are
currently not included within the group of public officials referenced
in RCW 41.04.190.
The basic legal issue is whether adding medical insurance benefits
constitutes an unconstitutional mid -term increase in compensation.
Article 2, section 25 of the state constitution states in relevant part:
The legislature shall never grant any extra compensation to any
public officer, agent, employee, servant, or contractor, after the
services shall have been rendered, or the contract entered into, nor
shall the compensation of any public officer be increased or diminished
during his term of office.
(Emphasis added.) Although this provision refers to action by the
legislature, it has been interpreted by the courts to also apply to
local government legislative bodies. See AGO 63 -64 No. 97, at 2, and
cases cited therein. Article 11, section 8 does not apply here because
it prohibits mid -term increases in salary, which is a narrower term than
"compensation." See AGO 1992 No. 21.
RCW 41.04.190 characterizes the "cost" of medical insurance to elected
officials of counties and special districts, but not to city elected
officials, as "not additional compensation," which means that the "cost"
of such insurance is compensation for the latter. See Inquiry AGO 1974
No. 9 and AGO 1969 No. 2.
In any case, our advice is that you discuss this with your city
attorney. You may also want to discuss this further with one of our
attorneys. I would suggest contacting Bob Meinig, MRSC Legal Consultant.
I have spoken with Bob about your inquiry.
I hope this helps.
Byron Katsuyama
Public Policy Consultant
MRSC
Visit our Web site!
www.mrsc.org
l ^J
City of Tukwila
City Council Regular Meeting Minutes
Sgt. Bruce Linton addressed the issue of how juveniles will be handled as a result of being charged with
this crime. In response to Councilmember Hernandez, Sgt. Linton noted they will be handled much the
same as with any other misdemeanor crime(s).
*The motion to adopt the ordinance, as read, carried 7 -0.
APPROVED ORDINANCE #2017
Page 4 of 9
April 21, 2003
b. Approval of 2003 Contract with Southwest King County Chamber of Commerce in the
amount of $20,000.00
Nancy Damon, Chamber Director, was present, yet made no presentation; nor were any questions asked.
In response to an inquiry at the April 14 meeting, from Councilmember Haggerton, Rhonda Berry
reported an addition to the Scope of Work was made. Service Item K, although currently being done,
was never expressly written as part of the agreement. The item mentioned states, "SERVICE K The
Chamber will act as a sounding board and Information source for issues associated with economic vitality,
development, and other matters related to the City's economic development policies."
DUFFLE MOVED; HERNANDEZ SECONDED; TO APPROVE THE 2003 CONTRACT WITH THE
SOUTHWEST KING COUNTY CHAMBER OF COMMERCE IN THE AMOUNT OF $20,000.00.
The motion carried 7 -0.
c. An ordinance fixing the amount of compensation for Councilmembers through 2007
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
AMENDING THE TUKWILA MUNICIPAL CODE TO FIX THE AMOUNT OF COMPENSATION
FOR COUNCILMEMBERS THROUGH 2007, REPEALING ORDINANCE NOS. 1942, 1955 AND
1956; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE
FENTON MOVED; DUFFIE SECONDED; READING OF THE PROPOSED ORDINANCE BY TITLE
ONLY. The motion carried 7 -0.
Assistant City Attorney David St. Pierre read the title of the proposed ordinance.
DUFFIE MOVED; HAGGERTON SECONDED; ADOPTION OF THE PROPOSED ORDINANCE AS
READ.*
Discussion began with Councilmember Haggerton asking if an answer had been received regarding an
inquiry on whether the reimbursement program should be counted as income. Lucy Lauterbach noted
the attorney to address that issue is on vacation. In light of that, Councilmember Haggerton spoke in
favor of deferring action on this issue until such time as an answer is reached.
COUNCILMEMBER FENTON MOVED "THAT, UNDER OLD BUSINESS ITEM C, THE ORDINANCE
FIXING THE AMOUT OF COMPENSATION FOR COUNCILMEMBERS THROUGH 2007, BE
PULLED FROM THE AGENDA." The motion died for lack of a second. To assist Councilmember
Fenton, Bob Baker, Deputy City Clerk, informed Council the maker of the main motion (to adopt the
proposed ordinance as read) could withdraw his motion and it would no longer be on the table. Council
chose to continue discussion of the item, under the guise of the main motion.
Discussion continued. Councilmember Hernandez recalled Council has staggered terms as well as
staggered levels of compensation. Council President Carter reported that as of 2004, the terms will begin
to level out. Additionally, she spoke in favor of small increases, or escalators, over the years, versus one
large jump in salary figures.
COUNCILMEMBER FENTON AGAIN ASKED IF THE MATTER WOULD BE POSTPONED. AGAIN,
COUNCIL CONTINUED DISCUSSION OF THE ITEM.
City of Tukwila
City Council Regular Meeting Minutes
Councilmember Haggerton wondered if there might be some Councilmember who would vote differently
if they learned an answer to his earlier inquiry about medical reimbursements being counted as income.
Councilmember Linder agrees with the way stipends are handled; yet is not comfortable with increasing
medical benefits for more than one reason, namely the City's current economic financial situation. "To
be prudent," she urged Council to "leave it [Council's medical benefit] where it is, which is healthy."
Before ending her remarks, Ms. Linder shared a written informational memo which lists the names of 10
area cities and whether or not their Councilmembers receive medical benefits. Finally, Councilmember
Linder spoke in favor of setting an example in leaving the benefit "as is" so as not to send a bad message
to employees or Tukwila residents.
Although not all Councilmembers will utilize the total amount of benefits per year, some will. As it relates
to those benefits which may be taxable, Council President Carter noted that if it hurts a person's tax
bracket, there is nothing which requires them to take all of that benefit or all of their salary. Confirming
Ms. Carter's position, David St. Pierre, City Attorney, noted Councilmembers are within their rights to
return whatever salary portion they don't want. The monies may be reduced in their W -2's and the City
can reflect they've received something less. In Congress, noted Mr. St. Pierre, this is done all the time.
FENTON MOVED; HERNANDEZ SECONDED; THAT UNDER OLD BUSINESS, ITEM C, THE
ORDINANCE FIXING THE AMOUNT OF COMPENSATION, FOR THE COUNCILMEMBERS
THROUGH 2007, BE PULLED FROM THE AGENDA. The motion carried 6 -1; with Councilmember
Linder voting NO.
*With the motion carrying 6 1, the previous motion, to adopt the motion as read, is moot.
Mayor Mullet asked this matter be placed on the next Regular meeting agenda or titled "pending" as staff
awaits answers to Council inquiries.
NEW BUSINESS:
a. Authorize Mayor to accept Public Works Trust Fund Loan in the amount of $100,000.00
for design of the Cascade View Neighborhood Drainage Project
LINDER MOVED; FENTON SECONDED; TO AUTHORIZE MAYOR TO ACCEPT PUBLIC WORKS
TRUST FUND LOAN IN THE AMOUNT OF $100,000.00, FOR DESIGN OF THE CASCADE VIEW
NEIGHBORHOOD DRAINAGE PROJECT.*
Councilmember Duffle left chambers during discussion of this item; yet returned before the vote was
taken.
Discussion ensued with a question and answer period between Councilmembers and Jim Morrow, Public
Works Director. Council was seeking clarification to information presented for this agenda item.
*The motion carried 7 -0.
Page 5 of 9
April 21, 2003
b. Authorize Mayor to sign a contract with Perteet Engineering, Inc., in the amount of
$269,715.00, to provide the North Quadrant GIS Infrastructure Inventory project
LINDER MOVED; CARTER SECONDED; TO AUTHORIZE MAYOR TO SIGN A CONTRACT WITH
PERTEET ENGINEERING, INC., IN THE AMOUNT OF $269,715.00, TO PROVIDE THE NORTH
QUADRANT GIS INFRASTRUCTURE INVENTORY PROJECT.*
Jim Morrow informed Council of the City's incomplete as -built infrastructure information and noted it lacks
a comprehensive inventory of all City-owned utilities. Generally speaking, areas recently incorporated
from King County have little to no recorded information, and areas developed or redeveloped through the
City have limited information. The global positioning study will include an area north of South 115
(Allentown) including Ryan Hill and East Marginal Way South. Of importance to the City, the study will
D
1 W r
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, FIXING THE AMOUNT OF COMPENSATION FOR
COUNCILMEMBERS THROUGH 2007; REPEALING ORDINANCE NOS.
1942, 1955 AND 1956; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, Ordinance 1956 set Council compensation levels for the years 2001
through 2005; and
WHEREAS, Council members elected in 2003 will serve through 2007, and salaries
for 2006 and 2007 are not set forth in Ordinance 1956; and
WHEREAS, the City Council recognizes that the current economy warrants a
conservative compensation that does not rise beyond the current scale; and
WHEREAS, a uniform stipend ensures that all Council members receive the same
salary for several years;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DO ORDAIN AS FOLLOWS;
Section 1. The Tukwila Municipal Code is hereby amended to set Council
compensation and benefits as follows:
2.04.030 Council Compensation and Benefits
A. Monthly compensation:
1. Compensation levels. Pursuant to the provisions of RCW 35A.12.070,
members of the Tukwila City Council shall receive the following monthly compensation
during the years listed here according to their position and date their term of office
commences:
Council Members Salary.doc
I I POSITIONS 1, 3, 5,7
1/1/02- 1W31/05
YEAR (current teen of office) and
1/1/06- 12J31/09
1 2003 1 $950 /month
1 2004 1 $1,000 /month
2005 1 $1,050 /month
2006 1 "$1,050/ month
1 2007 1 $1,050 /month
**New Council term commences on January 1.
POSITIONS 2, 4, 6
1/1/00- 12/31/03
(current term of office) and
1/WJ04-12/31/07
$685 /month
"$1,000/ month
$1,050 /month
$1,050 /month
$1,050 /month
2. Compensation review. At any time the Tukwila Council compensation falls
below the mean of the other Valley Communication cities, Tukwila will review the
stipends and may increase its stipend to the level of those other cities.
B. Benefits: Each member of the City Council, beginning January 1, 2003, shall be
eligible for one of two benefits options:
1. Reimbursement program. Reimbursement from the City for medical expenses
for one year including pharmaceuticals, health care, alternative health care, dental, and
vision costs; and health and life insurance premiums shall be authorized up to the
following limits (which approximates the cost of insurance for one employee) during
the years listed here, according to Councilmember position and date their term of office
commences:
Reimbursements shall be made only upon presentation to the Finance Director of a
receipt or other evidence that the expense was actually incurred; OR
2. Medical plan eligibility. Councilmembers have the ability to join the City's
self insured medical and dental plan which is offered to non represented employees.
This benefit will cover only the Councilmember and not additional family members,
unless the Councilmember makes separate payment for those family members.
Section 2. Repealer. Ordinance Numbers 1942, 1955 and 1956 are hereby repealed.
Section 3. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 4. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in hill force and effect
on
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of
2003.
ATTEST AUTHENTICATED:
Jane E. Cantu, CMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
Council Members Salary.doe
1 POSITIONS 1, 3, 5,7
1/I/02- 12/31/05
YEAR (current teen of office) and
1/1/06- 12/31/09
1 2003 1 $3,400 /year
2004 1 $3,400 /year
1 2005 1 $3,400 /year
1 2006 1 ""$4598 /year
1 2007 1 $4,598 /year
""Nero Council term commences on January 1.
POSITIONS 2, 4, 6
1/1/00- 12/31/03
(current term of office) and
1/104- 12/31/07
$3,400 /year
"$3,800/ year
$4,180 /year
$4,598/ year
$4,598 /year
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Steven M. Mullet, Mayor
Original Sponsor:
Timeline:
Sponsor's Summary:
Cost Impact (if
knowrO
I Fund Source (if known)
Meeting Date
4/14/03
4/21/03
7/14/03
Meeting Date
4/14/03
4/14/03
4/14/03
7/14/03
7/14/03
COUNCIL AGENDA SYNOPSIS
Meeting Date
7/14/03
Council x Admin.
N/A
COW
Regular Meeting
Initials
Prepared by 1 Mayor's review 1 Council review 1
IA/ 1 ;i,:t_(/i- I G,•:C.
I I
1 I
I I
ITEM INFORMATION
CAS Number: REF 03-049 Original Agenda Date. 4/14/03
Agenda Item Title: Ordinance Setting Council Meeting Procedures
This ordinance was discussed at a COW in April, where Pam Carter made several
suggested changes which were included. The ordinance is ready for adoption at a
Regular meeting, although a COW is a good chance to review it once again.
Recommendations:
Sponsor: Review ordinance
Committee: Finance and Safety recommended ordinance April 8, 2003
Administration: Same as sponsor
RECORD OF COUNCIL ACTION
Action
APPENDICES
Attachments
Memo from L. Lauterbach dated April 10, 2003
Draft ordinance showing changes; clean draft ordinance
Finance and Safety Committee minutes 4/8/03
Memo from L. Lauterbach dated 7/10/03
Draft ordinance and final version ordinance
ITEM No.
4t c
To: City Council
From. Lucy Lauterbach
Date. July 10, 2003
Subject: Council Oneratine Procedures Ordinance
The Council Operating Procedures are ready for your final review and approval.
When you last considered the ordinance, you agreed to several changes suggested by the Council
President. Those changes made since your last meeting are shown in the underlined (new
laneuaeel and deleted language- in the draft ordinance.
One of the issues that arose was in Miscellaneous Agenda Procedures on Page 6 of the
ordinance. The Council had recommended in Section E of 2.04.110 that proposed ordinances be
reviewed by the City Attorney take our the requirement that they be signed before they are
passed, as there are some that are not signed until after passage. State law dictates that
ordinances are to be signed before passage, so everyone will need to be certain that happens. In
some cases it could mean the delay of an ordinance going on an agenda. It's also a good reason
City Attorneys are present at Regular Meetings.
One change that I inserted to match the ordinance to the way we do business is under 2.04.110
Miscellaneous Agenda Procedures. Under C2, I added "impending deadline" as a condition for
putting an item directly on a Regular Meeting without going to a COW or committee first. It
seems that has been the reason for more agenda additions that other reasons. If you don't agree,
you can strike that new wording.
Other changes were simply clarifications or inserted or deleted language to make sure our current
practices are what is reflected in the Procedures.
The reason this ordinance was delayed was that it must be passed in conjunction with the salary
ordinance because it repeals the salary section (now moved to the salary ordinance) which must
be in place before this operating procedure ordinance is passed.
Thought there is not a rush on adopting this ordinance, it should be fairly quick to review and
can be recommended for passage at the July 2I meeting.
Hopefully we will now update this ordinance on a more regular basis.
ntftixfl
(Mark -up version)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, SETTING COUNCIL MEETING PROCEDURES AND
REPEALING ORDINANCE NUMBERS 1311, 1345, AND 1421; AND SECTION 1
OF ORDINANCE 1770; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council has decided to alter the procedures under which it
operates to provide for a more efficient and orderly governmental process; and
WHEREAS, several different ordinances from various years now have portions of
operating procedures that could more easily be followed in one ordinance;
NOW, THEREFORE, THE CITY COUNCIL OF TUKWILA, WASHINGTON, DO
HEREBY ORDAIN AS FOLLOWS:
Section 1. Chapter 2.04 of the TMC is hereby amended to read as follows:
2.04.010 Meetings Declared Open and Public
All meetings of the Tukwila City Council and its committees shall be open and public
and all persons shall be permitted to attend any meeting of these bodies, except as
otherwise provided in Section 2 04140
2.04.020 Regular Meetings
The City Council shall meet regularly on the first and third Mondays of each month
at 7:00 p.m., unless an alternative starting time is published set and nntirP is ven
pursuant to Sertinn 7 04 040. If at any time any Regular meeting falls on a holiday, the
Council shall meet on the next business day at the same hour. The City Council shall
meet at Tukwila City Hall, unless otherwise publicly announced.
2 04.030 Committee of the Whole Meetings
A. The Council shall sit as a Committee on the second and fourth Monday of each
month at 7:00 p m unless an alternate starting time is published, except if at any time
any committee meeting falls on a holiday, the Council shall meet on the next business day
at the same hour. The City Council shall meet at Tukwila City Hall, unless otherwise
publicly announced.
B. Meetings of the Committee of the Whole shall be held primarily for the purpose
of considering current issues of the City, coordinating the work of the City Council, and
Council Meeting Procedures 1 1
discussing draft ordinances, resolutions and policy issues in detail. The Committee of the
Whole will have no power to take final actions including, hot not limited tn, voting on a
motion, adopting ordinances or passing resolutions.
C. the Committee of the Whole may meet in a retreat setting to plan their work at
the beginning of the year; or at any time beneficial to in -depth deliberations by the
Council. Results of the Committee of the Whole's retreats will be discussed with the
Mayor and administration in order to establish and understand City goals A report
summarizing the proceedings will be made available following each retreat. No official
action will be taken at a retreat.
2.04.040 Special Meetings
Special meetings may be called by the Mayor, or any three Councilmembers by
written notice delivered by City ernpinyee(s) to each member of the Council at least 24
hours before the time specified for the proposed meeting and with public notice made
pursuant tn RC'W 42.30 OSft
2.04.050 Quorum
At all meetings of the City Council, four members shall constitute a quorum for the
transaction of business.
2 04.060 Seating
A. Members of the City Council will be seated at the Council table according to
seniority of the Council, except the Council President will be seated at the right of the
Mayor.
B. Seniority shall be determined by:
1. Greatest consecutive number of years served.
2. Greatest consecutive number of years plu months nr years
Revved prior to the current term(S)
3. Number of votes when elected.
2.04.070 Council President —Mayor Pro Tempore
A. At the first Regular Meeting in January of each year, members of the City Council
shall elect from their number a Council President who shall hold office at the pleasure of
the Council The general policy nf council is to elect presidents in a rotating order If a
varanry ncrurs in the afire of Council President, the City Council, at their net Regular
Meeting shall select a new Council President tn serve the remainder nf the year
B. In the absence of the Mayor, the Council President shall become the Mayor Pro
Tempore and perform the duties of the Mayor except that s /he shall not have the power
to appoint or remove any officer or to veto any ordinance. If a vacancy occurs in the office
of the Mayor, the City Council, at their next Regular Meeting, shall elect from their
number a Mayor, who shall serve until a Mayor is elected and certified at the next
municipal election.
2 04.080. Presiding Officer
Council Meeting Procedures 2 2
A. All Regular and Special Meetings of the City Council shall be presided over by
the Mayor, or in his /her absence, by the Mayor Pro Tempore. If neither the Mayor nor
the Mayor Pro Tempore is present at a meeting, the presiding officer for that meeting
shall be elected by a majority of the vote of those Councilmembers present, provided
there is a quorum.
B. All Committee of the Whole meetings shall be presided over by the Council
President. In if thethe Council President is to nnnrarily absent, 's temporary absence, the
Council shall elect a Councilmember to serve in that capacity until the Council President
returns.
C. The City Clerk, or his /her designee will staff Regular and Special Council
meetings and Committees of the Whole memings. In the absence of the Clerk, Deputy
Clerk or other qualified staff member appointed by the Clerk, the Mayor or Council may
appoint a staff person to act in that capacity.
D. The appointment of a Councilmember as Mayor Pro Tempore shall not in any
way abridge his /her right to vote on matters coming before the Council at such meeting.
E. The presiding officer shall preserve strict order and decorum at all meetings of
the Council. The presiding officer shall state all questions coming before the Council,
provide opportunity for discussion on each item frnm--th fl nnr nn the table, and
announce the decision of the Council on all subjects. Procedural decisions made by the
presiding officer may be overruled by a majority vote of the Council.
2.04.090 Agenda for Regular or Special Council Meetings
All items to be included on the agenda for Council consideration must be submitted
to the City Clerk in full by Noon on the Wednesday preceding each Council meeting. The
City Clerk shall then prepare a proposed agenda, with attachments, according to the
order of business. After the proposed agenda has been approved by the Council
President, or in his /her absence, by his /her designated member of the City Council, the
City Clerk shall prepare the final agenda, which shall be distributed to the Mayor,
Councilmembers, City Attorney and Department Heads no later than Noon on the Friday
preceding the Council Meeting. A copy of the agenda and subsequent documents shall be
posted on the bulletin board at City Hall A rnpy nf the fare sheet nf theAgenda will he
pnsted nn the City's wehsite
2.04.100 Agenda Format
The format of a Regular or Special City Council agenda shall be as follows:
A. Call to Order.
B. Pledge of Allegiance.
C. Roll Call
D. Special Presentations on key agenda items.
E. Appointments and Proclamations of the Mayor.
F. Citizens' Comments. To give the audience a chance to comment on items not
listed on the agenda.
G. Consent Agenda.
Council Meeting Procedures 3 3
1. Contains all consent agenda items approved by the Council President, from
a Committee of the Whole, or forwarded by unanimous committee action, and routine
items such as, but not limited to, approval of minutes and approval of vouchers. No
ordinances, resolutions, bid awards, or contracts over $50,000 will can be included on the
consent agenda.
2. The following rules shall apply to the consent agenda.
a. Any member of the City Council may, by request and without a Council
vote, have any items removed from the consent agenda. That item will, by automatic
procedure, be urwar d 'dylared under New Business for further discussion.
b. The remaining items shall be approved by motion.
H. Bid Awards.
All competitive bid awards shall comply with RCW Title 39, and those that
require Council approval shall include the contractor /vendor name, the project name,
and the total dollar amount of the award, The award may or may not include Washington
State Sales Tax.
I. Public Hearings.
1. For public hearings required by City, State or Federal law or as the Council
may direct. Examples may include, but not be limited to:
a. LID
b. Zoning
c. Budget
d. Revenue sharing grants
e. Annexation
f. Moratoria
g. Quasi- judicial decisions
2. The following procedures shall apply to public hearings, except public
hearings subject to TMC Chapters 18.104 to 18.116, which shall be subject to the
procedures specified therein:
a. The presiding officer may exercise a change in the procedures, but said
decision may be overruled by a majority vote of the City Council.
b. The proponent spokesman shall speak first and be allowed 15 minutes.
The Council may ask questions.
c. The opponent spokesman shall be allowed 15 minutes for presentation
and the Council may ask questions.
d. Each side shall then be allowed 5 minutes for rebuttal.
e. After the proponents and opponents have used their speaking time,
Council may ask further questions of the speakers, who may respond.
3. At public hearings and for issues where a p „blip meeting ic rPgnirPd nr
a general audience is in
1 1 1
1 IT
Council Meeting Procedures 4 4
attendance to present arguments for or against a public issue:
a. A signup sheet for speakers will be available, and all citizens
considering speaking will be asked to write their name and address legibly. If they speak
without signing up, they will be asked to sign in after speaking.
b. A person may speak for five minutes. No one may speak for a second
time until everyone wishing to speak has had an opportunity to speak.
c. After the speaker has used the allotted time, Council may ask questions
of the speaker and the speaker may respond, but may not engage in further debate.
d. Speakers should address their comments to the City Council and should
not address other audience members. Nn disparaging remarks, or remarks directed to
opponents will he am allnwPd
e. The hearing will then be closed to public participation by the presiding
officer and open for Councilmember discussion.disLussion.
J. Unfinished Business. This section of the agenda shall include items of a general
nature, including resolutions and ordinances previously discussed at a Council meeting.
The following procedures shall apply during this section of the agenda.
1 The item will he put on the table by motion
12. The committee chair, sponsor or a designated spokesman of each item
w$lmay give a presentation.
2.3 If a resolution or ordinance, the City Attorney or th unperson City
Administrator may read the item by title only, or, if requested by any Councilmember,
the document may be read in its entirety. A motion by Council shall rule.
4_ The Council may then question the sponsor or designated spokesman of the 1
presented item.
45..: When discussions rnnrhrde, The Council, by motion, will then dlspeltse
with act upn„ the resolution, ordinance, or other item.
K. New Business. This section of the agenda shall include all items of a general
nature including resolutions and ordinances previously discussed at a Committee
Meeting and put forward to the Regular Meeting and items that have been removed
from the consent agenda. The procedures that applied during this section shall be the
same as those under Unfinished Business.
L. Reports. Reports on special interest items from the Mayor, City Council, staff,
City Attorney, and intergovernmental representatives.
M. Miscellaneous.
N Fxecntiwo
0 Adjournment
2.04.110 Miscellaneous Agenda Procedures
A. The City Council desires to provide adequate time for administration and staff
analysis, fact finding and presentation.
Council Meeting Procedures 5 5
1. Items to come before the City Council should first be placed on the agenda of
the appropriate committee for discussion before they are placed on the agenda of a
Regular Council Meeting.
2. All items that are not routine in nature and presented shall include a
completed Council Agenda Synopsis (CAS), a staff report, and Committee Minutes. The
City Clerk, or a designated person, shall be responsible for attaching a CAS number,
keeping the original CAS, and an index for future reference.
B. The agenda and provision for the Committee of the Whole shall be committee
reports, discussion of items referred from committees, items referred by three
Councilmembers, and items set by the Council President. The agenda, and any
attachments, will be approved by the Council President or his /her designee, and shall be
prepared by the City Clerk for distribution to the Council by 17 p Noon on Friday.
C. Items may be placed directly on the agenda of a Regular Meeting when the items
are approved by the Council President, and:
1. The items are routine in nature, such as approval of vouchers;
proclamations; acknowledgement or receipt of petitions or documents; or discussion of
claims for damages.
2. An emergency condition exists that represents a personnel hazard,
impending deadline, or risk of immediate financial loss. In such instances, the CAS
summary or staff memo should clearly define why the special procedure is necessary.
3. In the event the sponsor of any items to come before the City Council feels it
both appropriate and beneficial to the City, s /he may bring such items directly to the
Regular Meeting with the concurrence of three Councilmembers fot Council deliberation
on the appi opt iaier thar item beuig placed on the agenda.
D. The Council President may affix an approximate time limit for each agenda item
at the time of approval of the agenda.
E. All proposed ordinances and resolutions shall be reviewed by the City Attorney
and bear her /his certification that they are in correct form before final passage. All
accompanying documents shall be available before ordinances and resolutions can be
passed.
F. Resolutions of the City Council shall be signed by the Council President.
G A joint resolution of the City Council and the Mayor may be proposed when:
1. The subject of the resolution is of broad City concern, and the subject
contains Council policy and administrative procedure; or
2. The subject of the resolution is of a ceremonial or honorary nature.
H. Joint resolutions will be subject to the voting rules in TMC, Chapter 7.04 in this
ordinance and will be signed by the Mayor and Council President. The Council may
provide for all Councilmembers ta_signing the joint resolution enacted under TMC, 1
Chapter 2.04.110 G.
2.04.120 Speaking Procedures
A. Speaking procedure for agenda items under consideration is as follows:
Council Meeting Procedures 6 6
1. A Councilmember desiring to speak shall address the chair, and upon
recognition by the presiding officer, shall confine him /herself to the question under
debate. Recognition of Councilmembers shall be by seniority.
2. Any member, while speaking, shall not be interrupted unless it is to call him
or her to order.
3. No Councilmember shall speak a second time on the same motion before
opportunity has been given each Councilmember to speak on that motion.
B. Addressing the Council for items under Council discussion shall proceed as
follows:
1. Any person, with the permission of the presiding officer, may address the
Council, but the presiding officer shall be required to recognize speakers in the following
order:
a. A person designated by the presiding officer to introduce the subject
under discussion.
b. Those whose request to be heard is contained in the written agenda.
c. Those who have submitted their request to be heard in writing or to the
City Clerk before the meeting.
d. Those who ask recognition from the floor.
2. In addressing the Council each person shall ctr nd advance to the podium, 1
and after recognition, give name and address, and unless further time is given by the
presiding officer, shall limit his /her address to five minutes. All remarks shall be made to
the Council as a body and not to any individual member, or to the audience.
3. No person shall be permitted to enter into any discussion from the floor
without first being recognized by the presiding officer.
4. Any person making personal, impertinent or slanderous remarks while
addressing the Council shall be barred from further audience participation by the
presiding officer unless permission to continue is granted by a majority vote of the
Council.
2.04.130 Voting
A. Silence of a Councilmember during a voice vote shall be recorded as an
affirmative vote except where such a Councilmember abstains because of a stated conflict
of interest. Each member present must vote on all questions before the Council and may
abstain only by reason of conflict of interest.
B. A roll-call vote may be requested by the presiding officer or any member of the
Council. Voting normally shall be by seniority; however, this procedure may be changed
by the presiding officer.
C. Confirmations of appointments by the Mayor; budget transfers; personnel levels;
and formal motions, resolutions, ordinances and amendments thereto; shall require the
affirmative votes of four Councilmembers.
2.04.140 Executive Sessions
Council Meeting Procedures 7 7
The City Council may hold an Executive Session during a Regular Meeting, Special
Meeting or Committee of the Whole meeting to consider certain matters as set forth in
RCW 42.30.110.
2 04.150 Continuances.
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.
2.04.160 Adjournment
A. Any Committee nf the Whole, Regular, adjourned Regular, Special or adjourned
Special Meeting may be adjourned in the manner as set forth in RCW 42.30.090.
g. A11 meetings nf the Council shall adjourn no later than 11:00 p.m. If the Council
desires to extend the meeting, a motion shall be required of a majority plus one vote of
Councilmembers present. Items not acted on by the 11:00 p.m. deadline shall be deferred
to the next respective Council meeting as unfinished business, unless Council, by a
majority vote of members present, determines otherwise.
2.04.170 Questions of Parliamentary Procedure
Questions of parliamentary procedure not covered by this chapter shall be governed
by Robert's Rules of Order, Newly Revised (latest edition).
2.04.180 Council Committees and Representatives
A. There arm four standing committees of the Council consisting of three
members each. The Council President shall appoint the membership of each committee
and the committee chairpersons by the second Regular Meeting of each year. The
chairperson for each committee shall set the schedule of meetings and cause them to be
published. In the event a committee member is unable to attend a meeting, s /he may ask
another Councilmember to attend in his /her place
The standing committees shall consider and may make policy and legislative
recommendations to the City Council on items referred to the committee by the Council
President, the Council, administrative departments, boards or commissions. If budgeted
in an amount less than or equal to $-.l a committee can approve a bid or
negotiation award by an affirmative vote of three committee members. If a unanimous
committee vote is not obtained, the award will be referred to the City Council for action.
The standing committees, their scopes of authority, and the supporting City departments
are as follow:
1. Transportation Committee, which shall consider matters related to
transportation, transportation plans, traffic, transit, streets, street lighting, signals, street
LIDs, and rights of way in coordination with the Public Works Department and
Department of Community Development;
2. Utilities Committee, which shall consider matters related to water; sewer;
electric power; natural gas; telephone; cable television; telecommunications; solid waste
reduction, reuse and recycling; river basins; and levies in coordination with the Public
Works Department.
Council Meeting Procedures 8 8
3. Finance and Safety Committee, which shall consider matters related to the
general fiscal and financial operations of the City; budget and financial reports; policy
matters related to personnel, including but not limited to, the salary grade schedule,
position classifications and salary changes in coordination with the Finance Department,
Administrative Services Department, and City Administrator. They shall consider matters
related to police and fire protection; the municipal court; emergency services; and animal
control in coordination with the Police Department, Fire Department, Civil Service
Commission, City Clerk, Library Advisory Board, Public Works Department, Lodging
Tax Advisory Board, Community Oriented Policing Board, Chamber of Commerce, and
Information Services.
4. Community Affairs and Parks Committee, which shall consider matters
related to the planning of the physical, economic aesthetic,
cultural and social development of the City, comprehensive plan, zoning code, building
code, code enforcement, sign code and annexation policies, in coordination with the
Department of Community Development; Human Services, Planning Commission,
Hearing Examiner, and Sister Cities Committee. They shall consider matters relating to
parks and park plans, recreation facilities and community activities, in coordination with
the Parks and Recreation Department, the Department of onununily Development, the
Arts Commission, Parks Commission, Human Services Advisory Board, and the Equity
and Diversity Commission.
B. The Council President may establish such ad hoc committees as may be
appropriate to consider special matters that do not readily fit the standing committee
structure or that require special approach or emphasis. The Council President shall
appoint Council representatives to intergovernmental councils, boards and committees as
needed.
C. Council committees shall consider all matters referred. The committee
chairpersons shall report to the Council the findings of the committee. Committees may
refer items to the Council with no committee recommendation.
D. Each committee chair may review and approve his /her committee agendas and
will approve committee minutes before distribution. Unb ueigeted request faims shou
Finance and Safety Committee
members -IQ r when the committee approves unbudgeted items.
2.04.190 Filling Council Vacancies
If a vacancy occurs in the office of Councilmember, the Council will follow the
procedures outlined in RCW 35A.1B.050. In order to fill the vacancy with the most
qualified person available until an election is held, the Council will widely distribute and
publish a notice of the vacancy, the procedure and any application form for applying.
The Council will draw up an application form, which contains relevant information to
answer set questions posed by the Council. The application forms will be used in
conjunction with an interview of each candidate to aid the Council selection of the new
Councilmember.
Section 2. Repealer. Section 1 of Ordinance 1770, and Ordinance Numbers 1311,
1345, and 1421 are hereby repealed.
Section 3. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
I 1111
so s e r
Council Meeting Procedures 9 9
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 4. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force 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
2003.
ATTEST /AUTHENTICATED:
Jane E. Cantu, CMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
Council Meeting Procedures 10
Steven M. Mullet, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
10
T
MU7
(Final format version)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, SETTING COUNCIL MEETING PROCEDURES AND
REPEALING ORDINANCE NUMBERS 1311, 1345, AND 1421; AND
SECTION 1 OF ORDINANCE 1770; PROVIDING FOR SEVERABILTTY;
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council has decided to alter the procedures under which it
operates to provide for a more efficient and orderly governmental process; and
WHEREAS, several different ordinances from various years now have portions of
operating procedures that could more easily be followed in one ordinance;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Chapter 2.04 of the TMC is hereby amended to read as follows:
2.04.010 Meetings Declared Open and Public
All meetings of the Tukwila City Council and its committees shall be open and public
and all persons shall be permitted to attend any meeting of these bodies, except as
otherwise provided in Section 2.04.140.
2.04.020 Regular Meetings
The City Council shall meet regularly on the first and third Mondays of each month
at 7:00 p.m., unless an alternative starting time is set and notice is given pursuant to
Section 2.04.040. If at any time any Regular Meeting falls on a holiday, the Council shall
meet on the next business day at the same hour. The City Council shall meet at Tukwila
City Hall, unless otherwise publicly announced.
2.04.030 Committee of the Whole Meetings
A. The Council shall sit as a Committee on the second and fourth Monday of each
month at 7:00 p.m., unless an alternate starting time is published, except if at any time any
committee meeting falls on a holiday, the Council shall meet on the next business day at
the same hour. The City Council shall meet at Tukwila City Hall, unless otherwise
publicly announced.
B. Meetings of the Committee of the Whole shall be held primarily for the purpose
of considering current issues of the City, coordinating the work of the City Council, and
discussing draft ordinances, resolutions and policy issues in detail. The Committee of the
Whole will have no power to take final actions including, but not limited to, voting on a
motion, adopting ordinances or passing resolutions.
C. The Committee of the Whole may meet in a retreat setting to plan their work at
the beginning of the year or at any time beneficial to in -depth deliberations by the
Council. Results of the Committee of the Whole's retreats will be discussed with the
Mayor and administration in order to establish and understand City goals. A report
summarizing the proceedings will be made available following each retreat. No official
action will be taken at a retreat.
2.04.040 Special Meetings
Special meetings may be called by the Mayor, or any three Councihnembers by
written notice delivered by City employee(s) to each member of the Council at least 24
hours before the time specified for the proposed meeting and with public notice made
pursuant to RCW 42.30.080.
Council Meeting Procedures 1 1
2.04.050 Quorum
At all meetings of the City Council, four members shall constitute a quorum for the
transaction of business.
2 04.060 Seating
A. Members of the City Council will be seated at the Council table according to
seniority of the Council, except the Council President will be seated at the right of the
Mayor.
13. Seniority shall be determined by:
1. Greatest consecutive number of years served.
2. Greatest consecutive number of years plus months or years served prior to
the current term(s).
3. Number of votes when elected.
2.04.070 Council President Pro Tempore
A At the first Regular Meeting in January of each year, members of the City Council
shall elect from their number a Council President who shall hold office at the pleasure of
the Council. The general policy of Council is to elect presidents in a rotating order. If a
vacancy occurs in the office of Council President, the City Council, at their next Rear
Meeting, shall select a new Council President to serve the remainder of the year.
a In the absence of the Mayor, the Council President shall become the Mayor Pro
Tempore and perform the duties of the Mayor except that s/he shall not have the power
to appoint or remove any officer or to veto any ordinance. If a vacancy occurs in the office
of the Mayor, the City Council, at their next Regular Meeting, shall elect from their
number a Mayor, who shall serve until a Mayor is elected and certified at the next
municipal election.
2 04.080 Presiding Officer
A. All Regular and Special Meetings of the City Council shall be presided over by
the IVrayor, or in his/her absence, by the Mayor Pro Tempore. If neither the Mayor nor
the Mayor Pro Tempore is present at a meeting, the presiding officer for that meeting
shall be elected by a majority of the vote of those Councilmembers present, provided
there is a quorum.
13. All Committee of the Whole meetings shall be presided over by the Council
President. If the Council President is temporarily absent, the Council shall elect a
Councilmember to serve in that capacity until the Council President returns.
C. The City Clerk, or his/her designee will staff Regular and Special Council
meetings and Committees of the Whole meetings. In the absence of the Clerk, Deputy
Clerk or other qualified staff member appointed by the Clerk, the Mayor or Council may
appoint a staff person to act in that capacity.
D. The appointment of a Counclimember as Mayor Pro Tempore shall not in any
way abridge his/her right to vote on matters coming before the Council at such meeting.
E. The presiding officer shall preserve strict order and decorum at all meetings of
the Council. The presiding officer shall state all questions coming before the Council,
provide opportunity for discussion on each item on the table, and announce the decision
of the Council on all subjects Procedural decisions made by the presiding officer may be
overruled by a majority vote of the Council.
2.04.090 Agenda for Regular or Special Council Meetings
All items to be included on the agenda for Council consideration must be submitted
to the City Clerk in full by Noon on the Wednesday preceding each Council Meeting. The
City Clerk shall then prepare a proposed agenda, with attachments, according to the
order of business After the proposed agenda has been approved by the Council
President, or in his/her absence, by his/her designated member of the City Council, the
City Clerk shall prepare the final agenda, which shall be distributed to the Mayor,
Councilmembers, City Attorney and Department Heads no later than Noon on the Friday
preceding the Council Meeting. A copy of the agenda and subsequent documents shall be
posted on the bulletin board at City Hall. A copy of the Agenda face sheet will be posted
on the City's website.
council Meeting Procedures 2 2
2.04.100 Agenda Format
The format of a Regular or Special City Council agenda shall be as follows:
A. Call to Order.
B. Pledge of Allegiance.
C. Roll Call.
D. Special Presentations on key agenda items
E. Appointments and Proclamations of the Mayor.
F. Citizens' Comments. To give the audience a chance to comment on items not
listed on the agenda.
G. Consent Agenda.
1. Contains all consent agenda items approved by the Council President, from
a Committee of the Whole, or forwarded by unanimous committee action, and routine
items such as, but not limited to, approval of minutes and approval of vouchers. No
ordinances, resolutions, bid awards, or contracts over $50,000 will be included on the
consent agenda.
2. The following rules shall apply to the consent agenda:
a. Any member of the City Council may, by request and without a Council
vote, have any items removed from the consent agenda. That item will, by automatic
procedure, be placed under New Business for further discussion.
b. The remaining items shall be approved by motion.
H. Bid Awards. All competitive bid awards shall comply with RCW Title 39, and
those that require Council approval shall include the contractor /vendor name, the project
name, and the total dollar amount of the award. The award may or may not include
Washington State Sales Tax.
I. Public Hearings.
1. For public hearings required by City, State or Federal law or as the Council
may direct. Examples may include, but not be limited to:
a. LID
b. Zoning
c. Budget
d. Revenue sharing grants
e. Annexation
f. Moratoria
g. Quasi- judicial decisions
2. The following procedures shall apply to public hearings, except public
hearings subject to TMC Chapters 18.104 to 18.116, which shall be subject to the
procedures specified therein
a. The presiding officer may exercise a change in the procedures, but said
decision may be overruled by a majority vote of the City Council.
b. The proponent spokesman shall speak first and be allowed 15 minutes.
The Council may ask questions.
c. The opponent spokesman shall be allowed 15 minutes for presentation
and the Council may ask questions.
d. Each side shall then be allowed 5 minutes for rebuttal.
e. After the proponents and opponents have used their speaking time,
Council may ask further questions of the speakers, who may respond.
3. At public hearings and for issues where a public meeting is required or
requested and a general audience is in attendance to present arguments for or against a
public issue:
a. A signup sheet for speakers will be available, and all citizens
considering speaking will be asked to write their name and address legibly. If they speak
without signing up, they will be asked to sign in after speaking.
Council Meeting Procedures 3 3
b. A person may speak for five minutes. No one may speak fax a second
time until everyone wishing to speak has had an opportunity to speak.
c. After the speaker has used the allotted time, Council may ask questions
of the speaker and the spealcer may respond, but may not engage in further debate.
d. Speakers should address their comments to the City Council and should
not address other audience members. No disparaging remarks, or remarks directed to
opponents will be allowed.
e. The hearing will then be closed to public participation by the presiding
officer and open for Councilmember discussion.
J. Unfinished Business. This section of the agenda shall include items of a general
nature, including resolutions and ordinances previously discussed at a Council meeting.
The following procedures shall apply during this section of the agenda:
1. The item will be put on the table by motion.
2. The committee chair, sponsor or a designated spokesman of each item may
give a presentation.
3. If a resolution or ordinance, the City Attorney or City Administrator may
read the item by title only, or, if requested by any Councilmember, the document may be
read in its entirety. A motion by Council shall rule.
4. The Council may then question the sponsor or designated spokesman of the
presented item.
5. When discussions conclude, the Council, by motion, will act upon the
resolution, ordinance, or other item.
K. New Business. This section of the agenda shall include all items of a general
nature including resolutions and ordinances previously discussed at a Committee
Meeting and put forward to the Regular Meeting and items that have been removed
from the consent agenda. The procedures that applied during this section shall be the
same as those under Unfinished Business.
L. Reports. Reports on special interest items from the Mayor, City Council, staff,
City Attorney, and intergovernmental representatives.
M. Miscellaneous.
N. Executive Session.
0. Adjournment.
2. 04.110 Miscellaneous Agenda Procedures
A. The City Council desires to provide adequate time for administration and staff
analysis, fact finding and presentation.
1. Items to come before the City Council should first be placed on the agenda of
the appropriate committee for discussion before they are placed on the agenda of a
Regular Council Meeting.
2. All items that are not routine in nature and presented shall include a
completed Council Agenda Synopsis (CAS), a staff report, and Committee Minutes. The
City Clerk, or a designated person, shall be responsible for attaching a CAS number,
keeping the original CAS, and an index for future reference.
B. The agenda and provision for the Committee of the Whole shall be committee
reports, discussion of items referred from committees, items referred by three
Councilmembers, and items set by the Council President. The agenda, and any
attachments, will be approved by the Council President or his/her designee, and shall be
prepared by the City Clerk for distribution to the Council by 12 PM on Friday.
C. Items may be placed directly on the agenda of a Regular Meeting when the items
are approved by the Council President, and:
1. The items are routine in nature, such as approval of vouchers;
proclamations; acknowledgement or receipt of petitions or documents; or discussion of
claims for damages.
Council Meeting Procedures 4
4
2. An emergency condition exists that represents a personnel hazard,
impending deadline, or risk of immediate financial loss. In such instances, the CAS
summary or staff memo should clearly define why the special procedure is necessary.
3. In the event the sponsor of any items to come before the City Council feels it
both appropriate and beneficial to the City, s /he may bring such items directly to the
Regular Meeting with the concurrence of three Councilmembers.
D. The Council President may affix an approximate time limit for each agenda item
at the time of approval of the agenda.
E. All proposed ordinances and resolutions shall be reviewed by the City Attorney
and bare her /his certification that they are in correct form before final passage. All
accompanying documents shall be available before ordinances and resolutions can be
passed.
F. Resolutions of the City Council shall be signed by the Council President
G A joint resolution of the City Council and the Mayor may be proposed when:
1. The subject of the resolution is of broad City concern, and the subject
contains Council policy and administrative procedure; or
2. The subject of the resolution is of a ceremonial or honorary nature.
H. Joint resolutions will be subject to the voting rules in TMC Chapter 7.04 in this
ordinance and will be signed by the Mayor and Council President. The Council may
provide for all Councihnembers to sign the joint resolution enacted under TMC Chapter
2.04.110 G.
2.04.120 Speaking Procedures
A. Speaking procedure for agenda items under consideration is as follows:
1. A Councilmember desiring to speak shall address the chair, and upon
recognition by the presiding officer, shall confine him /herself to the question under
debate. Recognition of Councilmembers shall be by seniority.
2. Any member, while speaking, shall not be interrupted unless it is to call him
or her to order.
3. No Councilmember shall speak a second time on the same motion before
opportunity has been given each Councilmember to speak on that motion.
B. Addressing the Council for items under Council discussion shall proceed as
follows:
1. Any person, with the permission of the presiding officer, may address the
Council, but the presiding officer shall be required to a<.., speakers in the following
order:
a. A person designated by the presiding officer to introduce the subject
under discussion.
b. Those whose request to be heard is contained in the written agenda.
c. Those who have submitted their request to be heard in writing or to the
City Clerk before the meeting.
d. Those who ask recognition from the floor.
2. In addressing the Council each person shall advance to the podium, and
after b lion, give name and address, and unless further time is given by the
presiding officer, shall limit his /her address to five minutes. All remarks shall be made to
the Council as a body and not to any individual member, or to the audience.
3. No person shall be permitted to enter into any discussion from the floor
without first being recognized by the presiding officer.
4. Any person making personal, impertinent or slanderous remarks while
addressing the Council shall be barred from further audience participation by the
presiding officer unless permission to continue is granted by a majority vote of the
Council.
2.04.130 Voting
A. Silence of a Councilmember during a voice vote shall be recorded as an
affirmative vote except where such a Councilmember abstains because of a stated conflict
Council Meeting Procedures 5 5
of interest. Each member present must vote on all questions before the Council and may
abstain only by reason of conflict of interest.
B. A roll-call vote may be requested by the presiding officer or any member of the
Council. Voting normally shall be by seniority; however, this procedure may be changed
by the presiding officer.
C. Confirmations of appointments by the Mayor; budget transfers; personnel levels;
and formal motions, resolutions, ordinances and amendments thereto; shall require the
affirmative votes of four Councilmembers.
2.04.140 Executive Sessions
The City Council may hold an Executive Session during a Regular Meeting, Special
Meeting or Committee of the Whole meeting to consider certain matters as set forth in
RCW 42.30.110.
2.04.150 Continuances
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.
2.04.160 Adjournment
A. Any Committee of the Whole, Regular, adjourned Regular, Special or adjourned
Special Meeting may be adjourned in the manner as set forth in RCW 42.30.090.
B. All meetings of the Council shall adjourn no Iater than 11:00 p.m. If the Council
desires to extend the meeting, a motion shall be required of a majority plus one vote of
Councilmembers present. Items not acted on by the 11:00 p.m. deadline shall be deferred
to the next respective Council meeting as unfinished business, unless Council, by a
majority vote of members present, determines otherwise.
2.04.170 Questions of Parliamentary Procedure
Questions of parliamentary procedure not covered by this chapter shall be governed
by Robert's Rules of Order, Newly Revised (latest edition).
2.04.180 Council Committees and Representatives
A. There are four standing committees of the Council consisting of three members
each. The Council President shall appoint the membership of each committee and the
committee chairpersons by the second Regular Meeting of each year. The chairperson for
each committee shall set the schedule of meetings and cause them to be published. In the
event a committee member is unable to attend a meeting, s /he may ask another
Councihnember to attend in his /her place.
B. The standing committees shall consider and may make policy and legislative
recommendations to the City Council on items referred to the committee by the Council
President, the Council, administrative departments, boards or commissions. If budgeted
in an amount less than or equal to $30,000, a committee can approve a bid or negotiation
award by an affirmative vote of three committee members. If a unanimous committee
vote is not obtained, the award will be referred to the City Council for action. The
standing committees, their scopes of authority, and the supporting City departments are
as follow:
1. Transportation Committee, which shall consider matters related to
transportation, transportation plans, traffic, transit, streets, street lighting, signals, street
LIDS, and rights of way in coordination with the Public Works Department and
Department of Community Development.
2. Utilities Committee, which shall consider matters related to water; sewer;
electric power; natural gas; telephone; cable television; telecommunications; solid waste
reduction, reuse and recycling; river basins• and levies in coordination with the Public
Works Department.
3. Finance and Safety Committee, which shall consider matters related to the
general fiscal and financial operations of the City; budget and financial reports; policy
matters related to personnel, including but not limited to, the salary grade schedule,
position classifications and salary changes in coordination with the Finance Department,
Administrative Services Department, and City Administrator. They shall consider matters
related to police and fire protection; the municipal court; emergency services; and animal
Council Meeting Procedures 6 6
control in coordination with the Police Department, Fire Department, Civil Service
Commission, City Qerk, Library Advisory Board, Public Works Department, Lodging
Tax Advisory Board, Community Oriented Policing Board, Chamber of Commerce, and
Information Services.
4. Community Affairs and Parks Committee, which shall consider matters
related to the planning of the physical, economic, aesthetic, cultural and social
development of the City, Comprehensive Plan, Zoning Code, Building Code, code
enforcement, Sign Code and annexation policies, in coordination with the Department of
Community Development, Human Services, Planning Commission, Hearing Examiner,
and Sister Cities Committee. They shall consider matters relating to parks and park plans,
recreation facilities and community activities, in coordination with the Parks and
Recreation Department, the Arts Commission, Park Commission, Human Services
Advisory Board, and the Equity and Diversity Commission.
B. The Council President may establish such ad hoc committees as may be
appropriate to consider special matters that do not readily fit the standing committee
structure or that require special approach or emphasis. The Council President shall
appoint Council representatives to intergovernmental councils, boards and committees as
needed.
C. Council committees shall consider all matters referred. The committee
chairpersons shall report to the Council the findings of the committee. Committees may
refer items to the Council with no committee recommendation
D. Each committee chair may review and approve his /her committee agenda and
will approve committee minutes before distribution. An affirmative vote of three
members of Finance and Safety Committee is required when the committee approves
unbudgeted items
2.04.190 Filling Council Vacancies
If a vacancy occurs in the office of Councilmember, the Council will follow the
procedures outlined in RCW 35A.1B.050. In order to fill the vacancy with the most
qualified person available until an election is held, the Council will widely distribute and
publish a notice of the vacancy, the procedure and any application form for applying.
The Council will draw up an application form, which contains relevant information to
answer set questions posed by the Council. The application forms will be used in
conjunction with an interview of each candidate to aid the Council selection of the new
Councilmember.
Section 2. Repealer. Section 1 of Ordinance No. 1770, and Ordinance Nos. 1311,
1345, and 1421 are hereby repealed.
Section 3. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 4. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force five days
after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE QTY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of
2003.
ATTEST/ AUTHENTICATED:
Jane E. Cantu, CMC, City Qerk
APPROVED AS TO FORM BY:
Office of the City Attorney
Council Meeting Procedures 7
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Steven M. Mullet, Mayor
7