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2007 - Legislative Agendar ti„q s a zj�s Hca Y � 4� � o :� x s ,y t?- 3`f ,� � Yet x t� ✓ y S d fdT:. aar City of Federal Way 20017 LegislativeAgenda As adopted by the Federal Way City Council December 19, 2006 CITY OF Federal Wad CITY OF FEDERAL WAY 2007 LEGISLATIVE AGENDA FEDERAL WAY CITY COUNCIL Michael Park, Mayor Jim Ferrell, Deputy Mayor Jeanne Burbidge Jack Dovey Eric Faison Linda Kochmar Dean McColgan FEDERAL WAY CITY ADMINISTRATION Neal Beets, City Manager Derek Matheson, Assistant City Manager (Legislative Relations) 1 City of Federal Way 2007 Legislative Agenda Active Items for 2007 (Listed in order of subject -area priority) �I� No Pre-emption of Local Authority; Provide Flexibility to Local Governments As a wide-ranging staple of its 2007 Agenda, the City will emphasize the need for legislators to recognize local government "home rule" authority. Federal Way will urge legislators to refrain from legislation that would pre-empt local government authority, restrict the flexibility of local governments, or remove existing authority and revenue sources. Again, the Legislature is to be commended for its restraint in this area in 2006, particularly with regard to proposed Growth Management Act (GMA) bills that would have undermined local authority and control. Transportation Federal Way appreciates the Legislature's efforts to inject new investment into the transportation system in both 2003 ("Nickel Package") and 2005 ("Transportation Partnership Act"). The City recognizes that a new package of gas tax increases and other new -revenue measures is unlikely in 2007, but that a number of other transportation issues will be front and center. Federal Way will be actively involved in these issues: 2007-09 Transportation Budget — Revamping the 2005 TPA The nationwide trend toward escalating costs for materials such as asphalt, concrete, and steel has significantly driven up the costs of transportation projects. Washington is just as susceptible as other states to this phenomenon. Already, the Washington State Department of Transportation (WSDOT) has responded to an Expert Review Panel by re-examining cost inflation factors for the two most costly projects in the 2006 TPA: the Alaskan Way Viaduct and the State Route 520 Bridge. Completing the core rebuilds of those two projects will now require an additional $1.4 billion over and above previous cost projections. This spike in costs will affect projects across the board, forcing the Legislature to re-examine its underlying budget and project schedule that laid the foundation for the 2006 TPA. As the Legislature revises the TPA as part of a 2007-09 budget exercise, Federal Way understands that project construction schedules may slip. However, the City will strongly oppose any revisions that have the effect of reducing or eliminating funding for projects in the 2005 TPA. The following state highway system projects are most important to addressing traffic and safety issues in and through the City: o Interstate 5/State Route 18/State Route 161 "Triangle" Interchange -- $100 million in the 2005 TPA o City Center Access Improvements north of 320th Street o Interstate 5/State Route 509, including collector/distributor lanes on 1-5 to 320th Street -- $40 million in the 2005 TPA o Interstate 5/272nd Street Interchange and 272nd Street improvements -- $10 million in the 2005 TPA. • Regional Transportation Financing and Governance In 2007, the Legislature will receive a report and recommendations from a 9 -member "Regional Transportation Commission" (RTC) that is evaluating the financing and governance for transportation and transit in the Central Puget Sound. Former City Council Member Mary Gates is a member of this Commission. It appears the Commission will focus its recommendations on ideas that provide new regional financing tools, more effective prioritization of certain regional projects, and perhaps a new structure to govern regional planning and financing duties. Federal Way is open to ideas that improve the way transportation and transit functions are carried out in the Central Puget Sound. However, the City is prepared to oppose measures that 3 add new layers of planning and process to the already cumbersome system of building and delivering projects. • Regional Transportation Investment District (RTID)/Sound Transit (ST) As the RTID and Sound Transit work on a package of transportation and transit investments to present to the region's voters in the fall of 2007, they are required to comply with 2006 legislation stipulating that the two agencies must have separate, "contingent" measures on the ballot. Specifically, under the 2006 -enacted ESHB 2871, the two separate ballots must both be approved by voters, or neither is considered approved. The RTID and ST are exploring whether one joint ballot might be simpler and more advantageous to present to voters,,and may ask the 2007 Legislature for this "one pull of the lever" joint -ballot authority. Federal Way officials believe it is critical that the RTID and Sound Transit have the tools they need to'develop a viable ballot measure for 2007, are prepared to.support proposed amendments'to assist with that effort,,and will advocate for full funding of the Triangle. Interchange and extension of light rail through Federal Way to the Tacoma Dome. Puget Sound Regional Council (PSRC) Executive Board Voting Seat Through a provision of the 2005-07 new -law transportation budget bill, the PSRC was directed to add an automatic voting seat on the PSRC Executive Board for Federal Way. The PSRC is now working on 2007 legislation that would re -confirm the Executive Board automatic voting status for Federal Way and other cities, and establish criteria by which any new Executive Board seats would be provided to growing cities in King, Pierce, and Snohomish Counties. Federal Way is prepared to support legislation put forth by the PSRC to make the Federal Way seat permanent and set up percentage -of -county population criteria for future Executive Board membership Capital Budget Requests • 2007 Session Project List Federal Way is deeply appreciative of the leadership and efforts by its area state legislators in the area of State Capital Budget funding. Through the capital budget Community Projects program, the City received $85G,000 in 2005-07 for the Joe's Creek stream restoration and salmon enhancement project, as well as $100,000 toward the rebuilding of the West Hylebos Park boardwalk. In 2006, the City of Federal Way held off on aggressive pursuit of capital budget line -item funding, due to the fact that it was a mid -year and course -correction year in the state's biennial process. With 2007 as a kickoff year for the state's next biennial capital budget, Federal Way will actively work with area legislators to secure funding for key projects within the City. Federal Way's top priority is to secure funding to ensure the City can meet its deed -of -sale obligations for the purchase of the former Camp Kilworth site overlooking the shores of Puget Sound_ Securing this property is a once -in -a -generation opportunity and the timing of the deed of sale is such that the City needs to work with area legislators on line -item funding opportunities. A second priority for the City involves working with area legislators on closing the funding gap for West Hylebos Park boardwalk replacement costs. The City's prioritized list of 2007 `asks' is as follows: Id Project Brief Description State Funding Needed Capital Budget Line - Item, or Capital Budget grant program *Camp Kilworth. Preserve public open $1.1 million Line -Item to go with $1 acquisitionspace on Puget Sound million local commitment, with purchase of a 25 -acre. $400,000 King County site that was formerly Conservation Futures home to a Boy Scout grant, and hoped-for $1 Camp. million WWRP grant *West Hyiebos`Park Provide dollars to close $300;000 Line -Item would Boardwalk replacement funding gap for accompany hoped-for replacement of $300,000 WWRP grant to deteriorating wooden close funding gap structure *Dumas Bay Center Capital upgrade to $100,000 Line -Item —would help rehabilitation conference center and City undertake feasibility theater facility. assessment to get a handle on exact costs and actions needed Fiscal Issues Streamlined Sales Tax (SST) The State Legislature enacted SB 5783 in 2003, legislation that largely brings Washington into compliance with a Streamlined Sales Tax Agreement (SSTA) project under development in more than three dozen states. The SST effort involves unifying sales tax definitions and practices, in hopes that Congress will explicitly authorize that sales tax be imposed on Internet -based transactions currently receiving tax-free treatment. In advance of any Congressional action, nearly 20 states formed an SSTA Governing Board of members and associate members in 2005, and will be contracting with multi -state and multi -channel retailers to voluntarily remit sales taxes from internet-based transactions. More than 1,000 retailers nationwide have registered for the voluntary -compliance program. Fiscal estimates show the State of Washington gaining more than $30 million a year from these voluntary compliance revenues, with estimates trending upward in future years. In fall 2005, Federal Way helped spearhead a compromise among cities that are both positively and negatively impacted by local sales tax sourcing changes required under the SSTA. The compromise calls on the state to use its general fund to set up a dedicated fund for full mitigation of sourcing impacts, with voluntary compliance revenues expected to ensure the state recoups its mitigation investment. The mitigation would not be permanent, and cities will work to ensure that no mitigation funds come in the form of taking gains experienced by certain cities (such as Federal Way) under a new sourcing system. In 2006, the State Senate voted 48-0 in support of Substitute Senate Bill 6594, a full -mitigation SST bill advanced by cities, counties, and a broad coalition of other stakeholders. House Leadership held up the bill in 2006 over political and timing concerns — not substantive issues. The City appreciates commitments by Governor Gregoire and House Speaker Frank Chopp to move the bill early in the 2007 Session and has listed SST enactment as a top fiscal priority. • Avoid Unfunded and Inadequately Funded Mandates In keeping with its policy of vocally opposing mandates that are unfunded or inadequately funded, the City of Federal Way will actively oppose bills and budget initiatives that contain unfunded mandates. In accordance with Initiatives 62 and 601, legislators, state agencies, and courts should refrain from imposing new mandates on local governments without the necessary funding to go with them. 1.1 Federal Way strongly urges legislators to refrain from imposing unfunded mandates, to ask if pending bills and budget matters contain unfunded mandates, and to seek full funding for local governments if mandates are considered a necessity for policy reasons. Specific unfunded mandate items the City will be prepared to oppose, absent necessary funding, include Growth Management Act (GMA) measures, tax policy and pension issues, and others which impose new responsibilities on local government. Federal Way appreciates the sensitivity of the 2006 Legislature in rejecting legislation with unfunded mandate implications, including bills relating to buildable lands, business license fee authority, utility tax provisions, and sick leave. • Guard Against Tax -relief and Tax -exemption Measures That Erode Local Government Revenues Despite the budget pressures facing our state, the 2006 Legislature received scores of requests for new tax relief or tax exemptions, as advocates of tax exemptions on business and property tax relief, etc., brought their cases to Olympia. The Legislature is to be commended for showing restraint in the areas of tax relief and tax exemption. The City of Federal Way urges the Legislature to avoid worsening the budget and fiscal landscape for local governments by passing ill-advised measures that erode local revenues through tax exemptions or tax relief. Ongoing Revenue/Local Government Financing/Infrastructure Fund ina/Economic Development Tools With the exception of the hardest-hit cities and counties, the Legislature has phased out all post - Initiative 695 backfill funding appropriated to assist impacted cities and counties. Federal Way has already foregone the yearly $300,000 provided by the old sales tax equalization program. Additionally, the City has dealt with property tax revenue decreases brought on by voter -approved Initiative 747, used banked property taxing capacity to address law enforcement needs, and worked to move police personnel away from desks and onto streets during a post -9/11 era when citizens are demanding more safety and security. The City does not believe that local governments should have to address these issues alone and strongly believes the State of Washington has a long-term policy obligation to assist and partner with its cities. In 2007, the City expects to acquire 4.4 acres downtown for urban -style redevelopment and will look to state economic development programs to help fund the project. Federal Way urges lawmakers to discuss new revenue needs for cities and counties in the 2007 Session — particularly as it relates to infrastructure and economic development tools. The City will join the Association of Washington Cities (AWC) and a coalition of other local government and business stakeholders in actively advocating legislation and budget measures to: o Enhance funding of existing infrastructure programs, most of which are significantly over- subscribed. o Expedite the approval process for existing grants and loans. Turnaround times for preliminary approval to funding allocations can often be 18 to 36 months. o Obtain a credit against the state Real Estate Excise Tax (REET) that could be directed to the local level for infrastructure and economic development recruitment/retention projects. o Secure new economic development tools, including: revisions to and expansion of the 2006 - enacted Local Infrastructure Financing Tools (LIFT) statute; revisions to the "Job Development Fund" to ensure it does not further impair the Public Works Trust Fund and to make it more responsive to job -generating projects; additional funds for the Governor's Strategic Reserve Fund, so that it can be more usable as an economic recruitment fund; a permanent funding source for the Community Economic Revitalization Board (CERB); and changes to make CERB more usable for urban areas of the state. o Consider amendments to Initiative 747's 1% property tax growth limit, given a King County Superior Court ruling that 1-747 is constitutionally flawed. Con Criminal Justice Law Enforcement Courts Auto Theft prevention Washington has the dubious distinction of ranking in the top five among all states in the nation when it comes to incidences of automobile theft. The auto theft problem is a major one in the Central Puget Sound and especially in South King County. Federal Way police dealt with 1,580 reported automobile thefts in 2005 — more than four per day. Through public awareness and education efforts, and other prevention methods put in place, the auto theft numbers for 2006 have decreased thus far, with 570 reported thefts iry the first five months of the year. Nonetheless, the problem remains a significant one, and the City has been part of a stakeholders' group working with state legislators on the development of 2007 auto theft prevention legislation. Federal Way will strongly support and actively advocate for 2007 legislation to stiffen and simplify the penalties for auto theft, to crack down on those who use certain tools to steal cars, and to provide funding to help local jurisdictions combine their efforts and combat auto theft cases that crossJurisdictional boundary lines. Domestic Violence Prevention: Legislation Addressina DV Incidents in the Presence of Children Last summer, the Federal Way City Council enacted a landmark ordinance that helps the City crack down on domestic violence offenses committed in the presence of children. Area state legislators have expressed interest in developing model legislation to more expressly authorize such ordinances statewide. If such legislation is brought forward, Federal Way will strongly support it and testify as to the importance of Federal Way's ordinance. Tourism/Community Events Legislative Remedy as to How Hotel/Motel Taxes May Be Expended A State Attorney General's Office opinion issued earlier this year puts new restrictions on how local jurisdictions may expend hotel/motel taxes for community festivals and events. Under the AGO, a city or county that sees the tourism value of a specific community event or festival may only contribute hotel/motel tax monies toward the advertising and marketing of such events, not the costs of putting on the event itself. federal Way is troubled by this AGO and how it may limit the City's ability to be a funding partner for events such as the Reebok Triathlon and the Han Woo-Ri Korean Festival. Federal Way will actively support an AWC-led effort to enact a 2007 legislative remedy that restores flexibility as to how hotel/motel tax revenues may be spent for community events and festivals. Funding for Han Woo-Ri Korean Festival Federal Way is extremely appreciative of the successful efforts by its area legislators during both the 2005 and 2006 Sessions to obtain state funding assistance for the inaugural and second -year Han Woo-Ri Korean Festival. The City will seek 2007 state funding to help offset Festival expenses, either through a direct appropriation or through a state tourism funding proviso that allows some of the tourism dollars to be utilized for community events and festivals. 7 Citv of Federal Way 2007 Legislative Agenda Support Items for 2007 (Listed in alphabetical order by subject area) Assuming these items arise during the 2007 session, Federal Way will work in support of efforts led by others in the following areas: Criminal Justice, Law Enforcement, Courts • Criminal Justice Training Commission (CJTC) Funding Federal Way worked on successful 2006 Supplemental Operating Budget funding and supports efforts to ensure adequate funding for the CJTC in 2007-09: This is even more important because City voters approved a utility tax measure in November 2006 that will allow for hiring 18 new police officers. All of these new officers will need to go through the police training academy. Federal Way will strongly support CJTC funding initiative in the 2007-09 budget. Courts — Municipal Court Services Flexibility Federal Way will support efforts by the AWC, individual cities such as Bellevue and Kirkland, and others to clarify state law to explicitly ensure that cities can contract with one another to provide multi -city or "Community Court" municipal court services. However, Federal Way will oppose any efforts to incorporate into this legislation any quid -pro -quo new requirements for the types of cases Municipal Courts must have jurisdiction over. Unsuccessful 2006 legislation would have required the Federal Way Municipal Court and all other municipal courts around the state to accept all Anti -Harassment Order and Domestic Violence Protection Order cases. Theft of copper and other scrap metals Theft of scrap metals — and sales of these metals to dealers and pawn shops to support drug and meth habits — is a growing problem in the Central Puget Sound. Federal Way will support expected 2007 legislation that requires second-hand dealers and pawn shops to require proof of ownership and other registration measures of those who take scrap metals to such shops for resale. Druq Seizures: Timing and Direction of Proceeds One of the criticisms of drug forfeiture efforts by law enforcement is that proceeds from drug seizures are not always returned to local drug enforcement. This is not true in Federal Way. The City has an exacting process of returning drug seizure proceeds to local drug enforcement and maintains very detailed accounting records. A 2006 bill in the State Senate would have altered the collection and distribution of drug seizure proceeds — something the City strongly opposes. If legislation in this area is brought forth in 2007, Federal Way will join other local governments and law enforcement agencies in strongly opposing it. • Interrogating Juveniles in Criminal Cases During the 2006 session, the State Legislature considered legislation that would have placed new notification requirements on law enforcement agencies that interview juveniles as part of a criminal investigation. Federal Way and other cities, counties, and law enforcement groups opposed provisions that would have allowed parents to undermine and even cut short an important interview component of criminal cases. If juvenile interrogation legislation is brought back in 2007, Federal Way is willing to support provisions that call on law enforcement to attempt to notify parents in situations where a juvenile is being interrogated. Federal Way will join the law enforcement community in opposing provisions that go further. 1.1 • Domestic Violence Prevention During the 2007 Session, lawmakers will consider a technical -fix bill to ensure that police and prosecutors can respond to all violations of DV no -contact orders. Additionally, 30th Legislative District lawmakers may bring forth legislation to authorize all local agencies to adopt the type of landmark DV prevention ordinances that the Federal Way City Council enacted in the summer of 2006 which, among other things, stiffens penalties for DV acts committed in the presence of children. Federal Way is prepared to support the DV no -contact order technical -fix bill and any legislation authorizing a statewide modeling of the City's DV prevention ordinance. "CBRNE" Funding and Legislation In the 2007 Session, law enforcement and fire officials will advocate for a funding and legislative package to better prepare Hazardous Materials teams (HazMat) to combat chemical, biological, radioactive, nuclear, explosive (CBRNE) chemicals and agent. Federal Way will support this effort. Economic Development tools 10 -Year Local Property Tax Exemption for Multi -Family Housing Federal Way is one of numerous cities that uses the 10 -year property tax exemption as a way to stimulate the construction of multi -family housing in downtown areas. There are some advocates of affordable housing who want to see the 2007 Legislature require that any multi -family housing units constructed through the 10 -year property tax exemption incentive must require inclusion of affordable housing units.. Federal Way will oppose mandates that undermine local control and dictate to local communities how they use the 10 -year property tax exemption incentive for multi -family. The City supports current statutory provisions that give a community the flexibility to incorporate features such as affordable -housing components into their local ordinances. "Community Investment Districts" (CIDs) Certain cities and housing authorities will bring to the 2007 Legislature a proposal to authorize "Community Investment Districts" as a way to expand the state's very limited Tax -Increment Financing statute. -1 he CID concept allows local jurisdictions to establish a tax increment area, pool local property tax revenues collected in that area, and use the revenues to help finance the debt service on infrastructure that is put in place to support economic development projects. The 2007 legislation being contemplated would also require that 20 percent of the CID revenues be dedicated to low-income housing. Federal Way supports this tool, but will look to others to initiate any efforts in this area. Fiscal and Efficiency Measurers Promoted by Cities and Counties Efficiencv Measures Pursued by the Tri -Association GroUD and Individual Local Governments Federal Way supports efforts by the AWC, the Tri -Association group of city and county associations, and individual local governments to seek out changes in statute that can make the provision of local government services more efficient and cost-effective. In 2007, this may include legislation to help deal with offender medical costs, exempt local governments from being charged for background checks by the Washington State Patrol, restore authority for counties and cities to impose jail booking fees, and provide liability protection for probation supervision. GMA, Annexation, Housing Targets, Land -Use, Permitting, Impact Fees It is expected that a variety of proposals related to the Growth Management Act (GMA) will come before the 2007 Legislature — everything from how Best Available Science is defined, to ideas that promote further integration of affordable housing, to annexation streamlining. Federal Way does not expect to take a lead role on these issues, but below are some specific items the City is prepared to support or oppose: • Annexation Authority for Cities Federal Way will support additional measures that better facilitate the process of annexations; which are expected to occur under the tenets of the Growth Management Act (GMA). • Civil Warrants If a coalition of cities and building officials brings forth 2007 legislation to enhance the authority of local governments to inspect properties that are suspected of being unsafe, dilapidated, and run down, Federal Way will support it. • Affordable Housing/GMA This summer and fall, stakeholders on an Affordable Housing Task Force worked on a package of ideas designed to spur the development of more affordable housing units in our state, and especially in the Central Puget Sound: A consensus task force package has now been adopted by an Affordable Housing Advisory Board (AHAB) that makes recommendations to the Governor. The package looks at new funding for infrastructure, certain modifications to the GMA, new economic development tools, etc. Federal Way is prepared to support the Affordable Housing/GMA package adopted by AHAB, provided it is not weighed down with attempts to foist costly new GMA requirements on cities and counties involving buildable lands, land capacity, housing targets, etc. + Housing Issues Involving Buildable Lands and Housing Targets Federal Way is sympathetic to the goals and objectives of housing availability and land supply for housing under the Growth Management Act. The Citysupports a thorough review of the process for allocating housing targets, as well as establishment of objective criteria for allocating targets. Additionally, the City did not oppose the agreed-upon language in SSB 5602 from the 2003 session, which asks cities to ensure that amendments to their comprehensive plans and GMA plans, taken collectively, will not diminish a city's commitment to meeting housing targets and economic development goals. However, the City does have concerns with any potential 2007 legislative .proposals that would introduce new definitional and data -collection requirements to the Buildable Lands program that will add new costs and requirements for cities. Federal Way will work against measures that unnecessarily add new costs and requirements for cities and counties within the Buildable Lands program. Additionally, the City will work against legislative initiatives that attempt to hold cities responsible for housing market performance. Clarifvina Local Zonina Authoritv on Location of Gamblina Establishments Federal Way supports legislation clarifying that localities, through their zoning and land -use police powers, have authority to condition the location of gambling establishments and determine where they should be situated in a community. Legislation being prepared for the 2007 Session would freeze the number of mini -casino gambling establishments statewide, and include provisions grandfathering in actions by Federal Way and other local governments to condition where such establishments may be located. Federal Way is prepared to support 2007 legislation related to gambling zoning and mini - casino establishment "freezes," so long as the grandfathering provisions remain intact in the bill. • Planning and Environmental Review Fund (PERF) The PERF program was funded in 1995-97, but was discontinued when the state ran into economic troubles. The program provides grants to local governments that do pre -planning of large areas so that there can be an overall land -use vision for such areas vs. a parcel -by -parcel, case-by-case view. For Federal Way, there are several areas in which PERF dollars could be put to good use. Recapitalizing the PERF fund is referenced in the aforementioned Affordable Housing/GMA package. Federal Way will support a PERF funding initiative if one is brought forth. 10 • Exclusionary Zoning In 2007, a low-income housing coalition is likely to promote legislation that would prohibit local governments from having any ordinances or land -use policies that allow for certain types of housing and housing providers to be excluded from a community or from certain zones. Federal Way will closely review any legislation in this arena, and will want to ensure it does not constitute an unfunded mandate or an attack on home rule. SEPA Reform Federal Way's planning officials have -suggested that substantive portions of the State Environmental Policy Act (SEPA) are duplicative of requirements that Federal Way and other cities already enforce through individual codes regulating transportation, drainage, sensitive areas;. etc. City planners also believe laws dealing with "vesting" of permits are long overdue for an overhaul as - well., While Federal Way will not be initiating any SEPA reform proposals for 2007, the City Will look to.fpld this idea into other SEPA proposals that may come along. The SEPA reform idea is,one of those mentioned in the aforementioned Affordable Housing/GMA package. LEOFF & PERS Pension Rates/Costs, Family and Medical Leave, Sick Leave The 2007 Legislature likely will be considering a series of proposals related to the PERS and LEOFF pension systems, including what to do with costly gain -sharing provisions in the PERS system, firefighter proposals to enhance LEOFF 2 benefits, ways to address LEOFF 1 medical costs, and others. Federal Way is already struggling with increased pension costs brought on by PERS system rate increases enacted by the 2006 Legislature. While the City appreciates the effort in 2006 to smooth rate increases over time, Federal Way is still dealing with a nearly four -fold increase in pension costs between 2005 and (projected) 2008. Additionally, Federal Way already provides its employees with generous -Family & Medical Leave and sick -leave programs and is very leery of any 2007 legislation that. would ask local agencies to do more in these areas. Federal Way is prepared to support efforts by AWC and others to prevent the passage of legislation that imposes new cost burdens on employers in all these areas. The. City cannot afford new pension -cost burdens beyond those already expected through rate increases programmed into the next few years. Liability Reform Liability Reform Package The Legislature has looked at liability reform for the past several years. Partisan divisions and sharply differing views on this subject have kept omnibus legislation from being enacted, but lawmakers have passed specific items, including an employee reference liability protection measure in 2005. Federal Way is prepared to support certain pieces of liability reform legislation in 2007, including measures to provide probation supervision liability protection. Local Government Funding, Grant Programs, and Funding Options • Support New Funding, Grant Programs, Funding Options In areas such as Economic Development, affordable housing and prevention of homelessness, public health, and human/social services, Federal Way will support state funding, state grant programs, and funding options that help local governments meet service obligations, provide additional opportunities, and protect the most vulnerable citizens in local communities. • Public Works Trust Fund Federal Way will support 2007 legislation to protect diversions of funds from the Public Works Trust Fund, and to expedite legislative approval of PWTF loans. 11 Miscellaneous Local Government Issues • Public Records Requests, Public Disclosure Act (PDA) The 2007 Legislature could be presented with two legislative proposals involving public records requests under.the PDA: 1) a City of Bellevue -promoted proposal to protect certain private information provided by citizens who enroll in public parks programs; and, 2) legislation to remedy the 2006 Supreme Court decision in Koenig vs. City of Des Moines, which could force the disclosure of sensitive records related to sexual assault crime victims. Federal Way is prepared to support the City of Bellevue measure: and Koenig v. Des Moines legislative fixes that may be proposed by sexual assault prevention groups. • Alternative Public Works Contracting Methods Federal Way is one of 13 cities authorized to use alternative public works contracting methods known as "design -build" and "General Contractor -Construction Management" (GC -CM) that are available for public works projects. costing $10 million or more and involving complex scheduling and building challenges:' The Alternative Public Works Contracting statute is due to sunset in 2007 and thus needs to be reauthorized. An advisory board reviewing the statute will recommend that it be reauthorized, that it be expanded to include projects under $10 million, and, potentially, that any jurisdiction which has not used its automatic authority must in the future go through a State Review Board if it wishes to utilize GC -CM or design -build. Federal Way supports continuing and expanding the Alternative Public Works Contracting authority, but will oppose provisions to place new review requirements on those jurisdictions that currently have automatic authority to exercise design -build and GC -CM on complex projects. Public works bid laws During:,the 2004, 2005, and 2006 sessions of the Legislature, several bills were initiated regarding the public works bidding process. The bills would have made the public works bid process more onerous, more costly, and perhaps more prone to liability problems by, for example, requiring local governments to establish new "just cause" provisions for rejecting bids. On behalf of cities, AWC helped defeat these bills. Federal Way will join cities, counties, and ports in opposing 2007 legislation that attempts to add new costs and complexities to a public works bidding process that works well under current statute. • Contractor Claims issues — "Michael M. Johnson" Fix During the 2005 and 2006 sessions of the Legislature, lobbyists representing general contractors promoted legislation that would have shifted the burden of proof for demonstrating that contractor claims on a public works project were tardy, invalid, etc. Cities and other public agencies resisted this legislation, which was designed to revise the outcome of a Michael M. Johnson v. Spokane County State Supreme Court ruling that went against contractors. Federal Way will join cities and other public agencies in resisting Michael M. Johnson fix legislation that unduly shifts the burden of proof in contractor -claims cases from the private entity to the public sector. However, the City is open to compromise solutions to this issue. Parks and Recreation Parks Funding Initiatives — WWRP In 2007, the Washington Wildlife and Recreation Coalition (WWRC) will spearhead an effort to push for an increase in funding of the Washington Wildlife, Recreation, and Parks (WWRP) program in the state's capital budget from the current $50 million to $100 million. Federal Way was very successful in the latest round of WWRP funding, but is extremely sympathetic to the funding shortage for parks projects. At the $50 million level, only 13 of 69 local parks projects submitted for funding would receive WWRP money. The City thus strongly supports the proposal to increase WWRP funding for parks, open space, riparian habitat enhancement, etc. 12 Stormwater • Flexible Permits for Phase II Cities and Counties In December 2006, the state Department of Ecology may issue the final version of a permit that would regulate how Federal Way and more than 100 other cities and counties deal with stormwater runoff and detention.. DOE drafted the permit in accordance with its authority to. administer the National Pollutant Discharge Elimination Standards (NPDES) under the federal Clean Water Act. While the City is appreciative of the DOE's efforts, Federal Way and numerous other city and county jurisdictions took objection with key components of the.Phase II permit, including those on monitoring and what conditions developers must meet for redevelopment of property. Federal Way and other Phase II jurisdictions are attempting to work out permit concerns with DOE, but likely will be asking lawmakers to hold hearings on continuing concerns with the redevelopment provisions of the Phase 11 permit. Teiecommunications.Company Franchising, Rights -of -Way, and Tax Policy Issues . • Federal Way will join with the AWC and others in strongly opposing any attempt by the telecommunications industry to weaken local authority in franchising, rights-of-way management, and utility tax revenue collection. Transportation Local .Funding & Local Options The 2006 Legislature provided local governments in the Central Puget Sound with a new local -option funding tool, giving them new "Transportation Benefit District" (TBD) authority that can be used beginning Dec. 1, 2007. The TBD provisions were part of Engrossed House Substitute Bill 2871 (ESHB 2871). During the 2007 Session, AWC and individual cities will seek legislative amendments that make the TBD authority easier to utilize, and to provide other local options for the local roadway system. During the 2007 session, Federal Way will support initiatives to augment local transportation funding and options. These options should include additional funds for the Transportation Improvement Board (TIB), which has been an excellent funding partner for local governments generally and Federal Way specifically over the last decade. Task Force on Concurrency for WSDOT During the 2006-07 interim, a legislatively -appointed task force has been examining transportation concurrency issues and how this impacts the WSDOT. Some legislators want the WSDOT to be allowed to receive impact fees for local development projects that impact the state highway system, if the WSDOT is not given the ability to comment on local permitting proposals and help shape the mitigation and impact fee section of the permit. Federal Way believes that nearly all cities already work hard to solicit the views of the WSDOT on development projects that impact the state highway system. However, the City may be open to legislation, if carefully worded, that provides an impact fee authority to WSDOT in cases where a locality has not contacted the WSDOT and solicited its input on a project and subsequently attempted to structure mitigation packages that take that input into account. Motorcycles Turning Left When a Traffic Signal Red Light is Inoperable During the past two sessions of the Legislature, Federal Way has expressed concerns with legislation on this issue, due to public safety and liability concerns associated with giving motorcyclists left -turn authority when a traffic signal red light is inoperable. The City felt it could live with an amended form of the legislation considered late in the 2006 Session — one that placed liability burdens on the motorcyclists and patterned the left -turn authority on current statute governing liability and procedures for right turns at red lights. Federal Way will closely monitor this issue in 2007 if legislation arises. 13 Water -Sewer District Assumption a Authority for Cities to Assume Water -Sewer Districts In the 2004 and 2005 sessions, Federal Way worked with the AWC and other individual city representatives to derail legislation that would have added cumbersome requirements to cities wishing to assume existing water and sewer districts. While Federal Way isnot imminently seeking to assume water districts such as Lakehaven and, in fact, looks for opportunities to work in concert with the Lakehaven Utility District, the City does not want to see water -sewer assumption laws undermined. FederalMay will work against water -sewer assumption.laws that make these efforts more difficult, cumbersome, and costly for cities. The City may also join with AWC and others in pro- actively seeking other alternatives than those annually put forward by special districts. 14 City of Federal Way 2007 Legislative Agenda Federal Issues Federal Fiscal Year 2008 Funding Requests Federal Way annually makes requests through the Washington State Congressional Delegation for funding assistance on key transportation and infrastructure projects. While specific funding -level requests are still being ironed out, the City expects that, in priority order, it will be seeking IFFY 08 funds for the 356th Street off -ramp component of the Triangle. Interchange, Pacific Highway HOV lanes between South 312th Street and Dash Point Road, and Camp Kilworth. Sales Tax on Catalogs, Mail -Order Sales, E -Commerce Federal Way supports congressional action allowing state and local govemments to collect sales and other applicable taxes from remote catalog and Internet sellers. Past judicial decisions and a federal moratorium on Internet taxation gives out-of-state retailers an unfair competitive advantage over locally based businesses. A sales tax simplification and streamlining project that involves more than 40 states, including Washington, is designed to show Congress that uniform definitions and procedures can be used to make the sales tax process as seamless as possible for e-tailers. Federal Way supports this effort by Washington and other states. The City is concerned that in addressing the Internet sales tax issue, Congress should refrain from telecommunications tax simplifications that undermine state and local authority in areas such as utility tax. Community Development Block Grant Federal Way supports full funding of the Community Development Block Grant program (CDBG). In greater Federal Way, CDBG funds support emergency services, public safety, and community-based collaborations. Federal Way opposes efforts to consolidate the CDBG funding with other programs and urges Congress to resist requested cuts. The City also advocates the state's congressional delegation to reverse the trend of flat and declining appropriations. COPS & Local Law Enforcement Block Grants Since their inceptions in 1994 and 1996 respectively, the COPS grants and Local Law Enforcement Block Grants (LLEBG) have been important sources of revenue for the City of Federal Way's public safety efforts. The COPS Universal Hiring Program and COPS MORE programs provided roughly $2.4 million and 28 police officers to Federal Way's new police department. In addition, the City has received $623,000 from LLEBG and $80,000 from the Justice Assistance Grant (JAG). Federal Way is disappointed by recent Congressional action that has consolidated the COPS and LLEBG programs with others and resulted in reduced funding. It is the City's hope that funding for law enforcement can be restored in coming sessions of Congress. • Land and Water Conservation Fund Federal Way strongly supports full funding for the Land and Water Conservation Fund and its stateside component to support the acquisition, construction, and repair of recreation and park facilities. • Homeland Security Funding Federal Way supports funding for homeland security and is doing its part to keep local communities as safe and secure as possible. However, the City urges Congress, in any measures for provision of homeland security funds, to distribute those funds as directly as possible and to local government and first responders. The City also advocates funding for training and overtime costs that will occur in our collaborative effort to protect our homeland. 15 s Reauthorization of the Telecommunications Act Federal Way recognizes the need to rework federal telecommunications laws to keep up with the ever- changing world of technology. However, the City strongly opposes provisions that pre-empt or limit the ability of local government to manage franchises and rights-of-way. Local government management of franchises and public right-of-way ensures robust telecommunications services are offered to the public... 16