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2005 - Legislative AgendaCITY OF FEDERAL WAY 2005 LEGISLATIVE AGENDA AND LEGISLATIVE POLICIES FEDERAL WAY CITY COUNCIL Dean McColgan, Mayor Linda Kochmar, Deputy Mayor Jeanne Burbidge Jack Dovey Eric Faison Jim Ferrell Michael Park FEDERAL WAY CITY ADMINISTRATION David Moseley, City Manager Derek Matheson, Assistant City Manager (Legislative Relations) City of Federal Way 2005 Legislative Agenda About this Document The City of Federal Way's 2005 Legislative Agenda and Legislative Policy Document is organized as follows: • The Legislative Agenda reflects the City's position on matters that are expected to arise either as legislation or in the state budget process, or both. Each major area of the Legislative Agenda first lists local government financing, tax/revenue, and transportation issues, with remaining issues categorized in alphabetical order. The 2005 Agenda helps note the City's level of involvement in an issue by listing it as: "Active" — meaning the City, as an individual entity, plans to actively involve itself in advocating for or against a given legislative/budget provision; "Support'— meaning the City has a great deal of interest in a given legislative/budget provision, but is more likely to support an advocacy effort than to lead it; • The Federal Issues portion of this document reflects the City's position and interest on several issues that directly impact local government funding and capacity to provide general services, maintain adequate tax revenues, address transportation, deal with core services, such as law enforcement and parks, and do its part on the critical issue of homeland defense. The Legislative Policies and Statements of Principles guide the City's approach to legislative advocacy and positions and reflect the City's principles in terms of interaction between state and local governments. These policies and principles are meant to serve the City in its approach to legislative issues, not just in a given year, but over time as well. However, in any legislative cycle, the City may have both overarching policies and principles on an issue as well as specific positions on a legislative initiative, funding effort, or bill(s). City of Federal Way 2005 Legislative Agenda Active Items for 2005 Financing Issues • 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. Being mindful of Initiatives 62 and 601, the economic hard times that have stricken our state, and the continuing fallout from "9/11," legislators, state agencies, and courts should refrain from imposing new mandates on local governments without the necessary funding to go with them. 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 involving permitting, and "buildable lands" inventories, etc., which impose new responsibilities on local government. Guard Against Tax -relief and Tax -exemption Measures That Erode Local Government Revenues Despite the budget pressures facing our state, the 2004 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. Sales Tax Streamlining The State Legislature enacted SB 5783 in 2003, legislation that largely brings Washington into compliance with a "Streamlined Sales Tax" (SST) project under development in a few 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. Federal Way supports legislation to further bring Washington into compliance with the federal Streamlined Sales Tax (SST) project. The City is involved in discussions as to what is an appropriate mitigation package for jurisdictions impacted by a change in local sales tax `sourcing' under the SST. Ongoing Revenue/Local Government Financing With the exception of the hardest -hit cities and counties, the 2004 Legislature continued the process of phasing out all post -Initiative 695 backfill funding appropriated to assist impacted cities and counties for 2003. The City of Federal Way was not among cities receiving the few remaining backfill funds. 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 Federal Way urges lawmakers to discuss new revenue needs for cities and counties in the 2005 Session and through the Local Land -Use and Financing Task Force established through a 2004 Supplemental Operating Budget proviso. The City will work closely with city and county associations and individual jurisdictions advocating this issue. Specific local financing and funding efforts the City will be supportive of include: *Efforts to provide new economic development financing authority to cities *Efforts to secure a permanent funding source for public health *Efforts to maintain critical health and human services "safety net" funding Property tax levy rate ratification authority In 2003, through Second Engrossed Substitute Senate Bill 5659, the Legislature provided city and county governments with new authority to submit multi -year levy lid lifts to their voters. However, this legislation requires that any city utilizing the new authority must.go to voters and ask for some type of increase in the property tax rate. As an additional feature of state law, the City of Federal Way would like the Legislature to enact enabling legislation that allows cities and counties the authority to lock in or ratify existing rates over a multi -year period. The City has asked that this issue be pursued by the Association of Washington Cities (AWC) for the benefit of all cities and will be actively pursuing it as a 2005 agenda item. Transportation Additional Funding Needs — Particularly Local Funding and Options and Programs such as TIB In 2003, the State Legislature enacted a 10-year, $4.2 billion "Nickel Package" transportation investment plan. The "Nickel Package," which took effect in July 2003, was financed by a 5-cent increase in the gasoline tax, a 15% truck weight fee increase, and a 0.3% sales tax surcharge on the sale of new and used automobiles. While the package was deeply appreciated by Federal Way and other cities, and included more than $100 million in investment on state corridors in and around the City, it was widely acknowledged as only a first step. Additional investment in the state's congested transportation system will still be needed. Just as importantly, the Nickel Package included no direct funding for local governments, no new local transportation funding options, and very little new funding for local programs that assist cities and counties in implementing transportation improvements. With the exception of some funding for a few local freight mobility projects, no new local funding was forthcoming in 2004, either. During the 2005 session, Federal Way will actively advocate initiatives to augment local transportation funding and options, particularly in terms of direct gas tax distributions to cities, as well as new local funding options that can replace the $15 vehicle fee repealed by Initiative 776. The loss of the $15 vehicle fee alone costs the City nearly $800,000 per year. Moreover, existing gas tax receipts to Federal Way have remained flat or declined over the past few years, and the City has been forced to commit more and more of its local general funds towards transportation needs. Additionally, Federal Way will actively assist with efforts to add funding for the Transportation Improvement Board (TIB). TIB has been an excellent funding partner for local governments, operates with low overhead, and has addressed operational inefficiencies and financing "over -obligation" problems from previous years. Finally, it should be noted that Federal Way will assist with efforts to provide new and dedicated funding for freight mobility, as well as funding for transit and Commute Trip Reduction (CTR) programs. •. State Highway System Projects In the event the 2005 Legislature looks at a new -investment package for Highways of Statewide Significance (HSS), Federal Way would advocate for the following priority projects that are critical to traffic flow through and around the City: *Interstate 5/State Route 18/State Route 161 "Triangle" Interchange *Interstate 5/272"d Street Interchange and 272"d Street improvements *City Center Access Study involving 1-5 — Environmental Assessment dollars • Regional Transportation Investment District (RTID) In 2004, the RTID Executive Board elected not to go forward with putting a regional transportation investment package on the ballot for King, Snohomish, and Pierce County voters. In the 2005 Legislature, certain stakeholders will be pursuing revisions to the RTID enabling statute that, in their minds, would make the RTID more attractive to voters and more able to accommodate non -roadway 4 and local projects. These may include additional taxing options, allowing high -capacity transit projects to be eligible for RTID funds, and lessening local match requirements for local arterial projects. Federal Way officials believe it is critical that the RTID remain viable and workable, and the City will be actively involved in any 2005 legislative discussions regarding the enabling statute. Capital Budget Needs 2005 Session Project List In response to its area state legislators, Federal Way has stepped up efforts to obtain funding for needed infrastructure improvements, particularly with respect to parks and recreation, through the state's biennial Capital Budget process. Working with its 30th District legislative delegation in 2003, the City succeeded in obtaining $250,000 for the Hylebos State Park and $106,000 for Historical Cabins Park. With 2005 looming as another biennial capital budget year, Federal Way will actively seek additional Capital Budget funding on a number of projects, including a series of requests for "line item" funding in the 2005-07 Supplemental Capital Budget. Details of these projects are provided in the chart below. High -priority line -item requests include $1 million for the Joe's Creek Salmon Enhancement and Regional Detention Pond project (total cost is estimated at $1.75 million). Project Brief Description State Funding Needed Capital Budget Line -Item, or Capital Budget Grant Program *Joe's Creek Stream Address erosion, $1 million Line -item funding needed Restoration and Salmon deteriorated piping, and Enhancement bank conditions that make fish passage difficult, and lead to flooding of private properties in the Joe's Creek basin *Hylebos Park Boardwalk Augment the state's $400,000 Line -Item $250,000 capital budget contribution for this project in a former state park. The state's 2003-05 Capital Budget contribution was allocated prior to cost -estimate work that shows this as a $1.3 million project. 50/50 city- state cost -share proposed *Dumas Bay Center Capital upgrade to $480,000 Line -Item rehab conference center and theater facility 5 Other Remedy for DWLS 3 suspensions imperiled by Redmond v. Moore Midway through 2004, in a narrowly -decided case involving a third-degree Driving While License Suspended (DWLS) charge by the City of Redmond, the Washington State Supreme Court ruled that the DWLS 3 was unconstitutional because it did not provide adequate due process and hearing notice for the offender. This has resulted in Federal Way and scores of other cities and counties — as well as the state Department of Licensing — dismissing hundreds if not thousands of cases that involved DWLS 3 charges such as failure to appear or failure to pay. The problem is that DWLS is a "gateway crime" that is often an indicator of more serious acts committed by an offender — thus, letting offenders free on DWLS 3 charges creates a huge public safety problem across the state. Federal Way will actively work with police, prosecutors, and other jurisdictions in seeking a 2005 legislative remedy — such as a separate hearing notice — that will again allow DWLS 3 charges to be brought forward and prosecuted if necessary. Amend 2004 Supplemental Transportation Budget proviso relating to PSRC voting seats Federal Way will actively work in the 2005 Legislature to revise a 2004 Supplemental Transportation Budget proviso that provided some cities with new Puget Sound Regional Council (PSRC) executive board voting seats — but did not grant that same automatic voting seat to Federal Way. The City believes the budget proviso took a helpful policy step in recognizing the need for more automatic voting seats outside Seattle, but inappropriately omitted Federal Way while including Bellevue, Kent, and Renton. Federal Way strongly believes that for an array of reasons related to transportation, transit, density, etc., it merits an automatic voting seat. The City will thus work to both extend the 2004 budget proviso on PSRC voting seats, and adjust it to include Federal Way. Cli of Federal Way 2005 Legislative Agenda Support Items for 2005 Assuming these items arise during the 2005 Legislative session, Federal Way will work in support of efforts led by others in the following areas (grouped in alphabetical order according to general subject matter): Economic Development/infrastructure Tools • New economic development financing authority for cities via state sales tax credit Federal Way will strongly support legislation being developed by a number of cities that is designed to create new financing authority for economic development and infrastructure purposes. The legislation would establish a fund for infrastructure that would trigger new development that creates new jobs or helps retain existing jobs. Expansion of Tax -Increment Financing (TIF) At a time when the economy is in an ongoing recession, the state's ability to directly assist cities is very limited, and the electorate is leery of any new general tax increases, tools to foster infrastructure and economic development become even more critical. One tool used by other states is "Tax -Increment Financing." TIF directs future increments of tax revenue to finance debt payments for infrastructure that serves new development and creates new jobs and revenue within a community and for the State. The 2001 and 2002 Legislatures authorized very limited forms of TIF, and cities made a strong push in the 2003 and 2004 sessions of the Legislature to expend "TIF." Given the House Speaker's reluctance to embrace the expansion of TIF, Federal Way will not be initiating advocacy efforts in this area, but would continue to support legislative efforts advanced by others. Gambling Non -Tribal Gambling Expansion Proposal Federal Way does not believe that significantly expanding non -tribal gambling is an appropriate way to address the fiscal crisis confronting state and local governments. Further, the City has concerns about how such proposals affect a community's character and quality of life. In 2003, Federal Way opposed the non -tribal gambling expansion proposal from the Entertainment Industry Coalition (EIC). In November 2004, the state's voters will be deciding on Initiative 892, which greatly expands non -tribal gambling while reducing state property tax levels. If the initiative fails on the fall ballot and reappears as a legislative matter in 2005, Federal Way will join others in opposing non -tribal gambling expansion. If the Legislature feels it must make a policy choice to do so, Federal Way would join other cities in urging the Legislature to impose local tax and revenue components to assist with the additional law enforcement and public safety impacts that could arise. Local Government Financing Issues New Unincorporated Area Utility Taxing Authority During the 2002 session, King County led county governments in advocating new countywide utility taxing authority through bills such as HB 2950. Federal Way and suburban cities throughout King County strongly opposed this legislation because it would have been countywide and, thus, would have added to existing utility taxes already imposed by cities. However, Federal Way expressed its willingness to support unincorporated area utility tax authority for King County and other counties in the 2003 and 2004 sessions, and would continue to do so if the idea is brought forth in 2005. 7 Criminal Justice, Law Enforcement, Courts • Court Funding Task Force Issues — Municipal court services flexibility, election of judges subject matter handled by Municipal Courts For more than a year, a Court Funding Task Force comprised of judges, elected officials, business, labor, lawyers and others has been examining the problems with the funding of trial courts in the State of Washington. Cities have had some concern about the makeup of the task force, which has very few representatives of the executive branch of local governments. Nonetheless, the Court Funding Task Force has moved ahead and plans to submit to the Legislature a taxing options package to better fund the court system. The CFTF package contains a number of features, some of which the City will support, others it will remain neutral on, and still others that Federal Way is prepared to oppose: *New funding for courts Federal Way will support this plank of the CFTF package. *Explicit authority for cities to contract with one another for multi -jurisdictional Municipal Court services Federal Way supports this and believes that cities may already have this authority. However, the City may join AWC in opposing certain `strings attached' provisions that could be paired with this legislation and thus make it more onerous. *Authorizing Municipal Courts to expand their subject -matter jurisdiction The CFTF is mulling over this part of its package and may propose that more anti -harassment, domestic violence and other cases be referred to Municipal Courts. Given already rapidly -increasing caseloads, plus resource and budget problems that already exist, Federal Way will be prepared to strongly oppose this provision if it comes forth as a mandate vs. option. 2005 Liquor Control Board agency -request legislation — Nightclub Licensing: Federal Way will actively work with the State Liquor Control Board to advance legislation regarding the licensing of nightclubs. Current licensing practices have nightclubs licensed as "spirits, beer, and wine restaurant" establishments — thus allowing them to have minors on their premises. Proposed 2005 legislation submitted by the LCB would set up a separate licensing process for nightclubs, require the nightclubs to provide security and operations plans, and give local officials a clearer sense of the type of license being proposed. Illegal activity at a teen nightclub has been a significant problem for Federal Way police. Technical Fix in Statute to Allow Repeat Lewd Conduct Offenders to be Prosecuted as Felons The City of Everett, with support from law enforcement associations and prosecutors, will be bringing an initiative to the 2005 Legislature regarding lewd conduct/indecent exposure violations. The initiative is designed to fix an oversight in the statutes that may prevent repeat violators from being charged and convicted as felons. Just as it did in 2004, Federal Way will support this initiative ensuring that repeat violators of lewd conduct and indecent exposure laws can be charged as felons. "Stipulated Orders of Continuance" (SOCs) An SOC is an agreement between prosecutor and defendant, signed by a judge: in return for the defendant's willingness to pay costs and attend a course of treatment, the prosecutor agrees to hold off on prosecuting a case. It is a very useful tool for prosecutors and defense attorneys alike. However, many judges, including Municipal Court judges, believe a recently -issued judicial ethics opinion forbids the practice of entering into SOCs. Federal Way will support any 2005 legislative initiative brought forth to restore SOCs as a usable tool to settle cases between prosecutors and defendants. • Drug 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 law or drug enforcement. This is not true in Federal Way. The City has an exacting process of returning drug seizure proceeds to law and drug enforcement and maintains very detailed accounting records. A citizen initiative on drug seizures did not collect enough valid signatures to qualify for the 2002 ballot. This matter did not surface in the 2003 or 2004 Legislature and, thus far, indications are that it will not come up again in 2005. If legislation in this area is brought forth in 2005, Federal Way will join other local governments and law enforcement agencies in strongly opposing it. Prior legislation would have limited drug seizures to post -conviction only, along with shifting proceeds from drug seizures away from local law enforcement and toward state drug treatment programs. • Protecting Privacy rivacy of Law Enforcement Personnel The City has traditionally supported legislation to protect items such as law enforcement social security numbers and home phone numbers from public disclosure and dissemination. If legislation is brought forward in 2005 to protect the privacy of law enforcement personnel, Federal Way will be supportive of it. Efficiency Measurers Promoted by Cities and Counties Efficiency Measures Pursued by the Tri-Association Group and Individual Local Governments In preparation for the 2005 session of the Legislature, the Tri-Association group, comprised of the Association of Washington Cities (AWC), Washington State Association of Counties (WSAC), and the Washington Association of County Officials (WACO), will examine a legislative initiative to revise certain statutes that are obstacles to local government cost-effectiveness and efficiency. Additionally, the AWC may pursue a cities "technical fix" bill aimed at removing or revising some outdated and obsolete sections of state statutes that impede cities from carrying out their responsibilities. Examples of items that Federal Way has sent along to the AWC for a possible 2005 technical -fix bill include: *Eliminating the requirement in RCW 43.09.230 that cities provide the name of their labor relations' consultants in collective bargaining. The requirement does not appear to serve any purpose and involves needless time and paperwork. *Eliminating the requirement under RCW 39.44 that cities provide information on their bonded indebtedness to the State Department of Community, Trade, and Economic Development (CTED). Such information already is provided to the State Auditor's Office. *Revising the requirement that planning commissions, under RCW 35.63.040, must meet at least nine times per year. The requirement is arbitrary and should involve more flexibility for cities such as Federal Way. GMA, Annexation, Housing Targets, Land -Use, Permitting, Impact Fees Annexation Authority for Cities In 2004, the Legislature directed a study of annexation issues through a proviso in its Supplemental Operating Budget. The Department of Community, Trade, and Economic Development is acting as the convener for this study and has established an advisory committee on which cities have a seat. Federal Way hopes that this study of barriers to annexation, and needed funding that could better facilitate annexation, will yield a series of proposals for the 2005 Legislature. Thus far, there have been some technical annexation fixes suggested, and the City of Kirkland is working on legislation that could establish new financing authority for cities embarking upon costly annexations. 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). 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 City supports 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 2005 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 any measures that break 20-year housing targets into smaller intervals, such as annual targets, as well as legislative initiatives that attempt to hold cities responsible for housing market performance. Timing of GMA Impact Fee Payments During the 2004 Session, individual cities and the AWC headed off legislation that would have delayed the timing of payment of GMA impact fees. These are currently collected at the front end of the permit process, so that local governments and schools can use the fees to address immediate impacts that new developments bring (e.g. need for traffic signals, sidewalks, school portable buildings, etc.). Stakeholders representing the building industry contend the up -front payment of impact fees makes it more difficult for small builders to finance housing developments. A 2004-2005 interim work group was to be assembled on this topic, and legislation in 2005 is a possibility. Federal Way will be aligned with cities, counties, and school districts in opposing any 2005 legislation that makes the collection of impact fees more costly and onerous by delaying the timing of payment of those fees. GMA Work Group — Potential 2005 Legislative Items This summer and fall, stakeholders from local government, business, and environmental groups, together with state CTED representatives, will meet to examine incremental improvements that might be made to the GMA. The Work Group stakeholders are looking at things such as delaying GMA update requirements for small, and slower -growing jurisdictions. Federal Way will support 2005 legislation forwarded by the GMA Work Group if it has consensus support from those around the table and has broad support from local government. However, the City would be opposed to any legislation that compromised its authority to appeal GMA plans in neighboring counties or cities that do not adequately address issues such as transportation, building standards, zoning, etc., that are critical to Federal Way. Clarifying Local Zoning Authority on Location of Gambling 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. Such legislation came close to passing in 2004, stalling on the Senate Floor in the closing weeks of session. Federal Way believes such authority already exists in law and wants to ensure that any 2005 legislative initiative is drafted so that it builds off of the concept of existing authority. Ensure funding for new Permit Processing Reporting Requirements In 2004, the State Legislature enacted SHB 2811, legislation which requires cities and counties to file reports on their permit processing — and to post and continually update such reports on their website. While Federal Way understands the general rationale. involved in this statute, it has pointed out that there are costs associated with it, costs which should be reimbursed by the state. Federal Way will support 2005 legislation and/or budget provisions to provide a reimbursement for the permit processing reporting requirements under SHB 2811. • Planning and Environmental Review Fund (PERF) In its agency -request package for the 2004 Supplemental Operating Budget, the Department of Community, Trade, and Economic Development (CTED) recommended the Legislature invest $1.5 million into recapitalizing the 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 prefer planned action 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, which has utilized such planning for its downtown core, PERF dollars could be put to good use. 10 Federal Way hopes that 2004-05 interim discussions on permit processing issues will yield a recommendation on PERF funding for the 2005-07 biennial budget, and will support such a proposal if it comes forth. Liability Reform Liability Reform Package/"Public Duty" doctrine In 2003 and 2004, a group known as the Liability Reform Coalition worked on advancing a series of liability reform measures through the Legislature. The Liability Reform package dealt with a range of issues, such as medical malpractice costs, "joint and several" liability, and tort judgment interest rates (2004 legislation was passed on this item). An additional issue of importance to cities, counties, and the state involves what can be covered and indemnified as a governmental responsibility in the "Public Duty Doctrine". Federal Way has supported some of the liability reform pieces, including those that provide liability protection for employee reference information, 'joint and several' reform, and the Public Duty Doctrine amendments. However, for tactical reasons, the State Senate leadership has wanted all liability measures combined into one omnibus bill, which failed to pass in 2003 and 2004. Federal Way will support certain pieces of any 2005 liability reform package, particularly involving the employee reference, Public Duty Doctrine, and putting brakes on "joint and several" liability costs for cities. However, the City will be hesitant to advocate larger, omnibus bills that deal with more controversial items that do not directly affect cities. Miscellaneous Local Government Issues Public Records Requests, Attorney -Client Privileged Documents In a recent State Supreme Court case involving the Seattle Monorail, the Court upheld the right of local governments to use the attorney -client privilege section of state statute to keep certain sensitive documents from disclosure. Additionally, in this case, known as the Hangartner case, the Court upheld government's authority to deny records requests that are overly broad and vague. Newspapers, the State Auditor's Office, and others have stated their intention to go to the 2005 Legislature with a bill to clarify and possibly reverse the decision in Hangartner. Federal Way will work with a coalition of cities, counties, ports, school districts and others in attempting to ensure that the decision in Hangartner and the overall state of the Public Disclosure Act is left intact. The City strongly believes that the attorney -client privilege is critical when it comes to records that involve sensitive information (e.g. negotiations, real estate, etc.). Further, the City believes that while the overwhelming majority of public records requests are legitimate and well-founded, some are intentionally crafted in an overly broad and vague manner and end up as an abuse of the system that costs local governments considerable time, resources, and dollars. Additionally, the City believes there should be a higher fee on copying of public records so that local governments can achieve a cost -recovery on these requests. Regulation of motorized scooters Federal Way is one of a number of cities that enacted local ordinances during 2004 to address growing safety and noise problems associated with motorized scooters. State law provides local governments with the authority to regulate the motorized scooters, but at least one state lawmaker has announced his intention to sponsor 2005 legislation to make the regulations more uniform and standardized. Federal Way will join AWC and other cities in working to ensure that 2005 legislation on motorized scooters continues to provide local jurisdictions with the regulatory authority they need, while also looking at uniformity and standardization that may be helpful to cities. Public works bid laws During the 2004 session 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. AWC, on behalf of cities, helped defeat these bills. Federal Way will join cities, counties, and ports in opposing 2005 legislation that attempts to add new costs and complexities to a public works bidding process that works well under current statute. 11 • Requiring fee information to be included in RFQ documents provided by enaineerina firms Federal Way will support legislation that the Lakehaven Utility District expects to bring forward on this issue in 2005. The legislation would require that consulting engineering firms include fee information up -front in their RFQ submittals. • Authorizing local governments to impose fees for recycling or discarding of electronic and computer equipment Federal Way is prepared to support legislation in this issue area if it comes forth in 2005. Parks and Recreation • Washington Wildlife, Recreation and Parks (WWRP) program funding in the 2005-07 Capital Budget As it has in previous biennial capital budget cycles, Federal Way will strongly support retaining current funding levels for, and hopefully expanding funding for, the Washington Wildlife, Recreation and Parks (WWRP) program within the state capital budget. The City has made good use of WWRP funds for parks improvements over the years. • Parks M&O needs Federal Way has had past concerns with legislative initiatives that would dilute existing capital funds for parks and allow some of those funds to be used for parks M&O needs instead. However, the City would support efforts to provide new Real Estate Excise Tax (REET) or Conservation Futures funding where a portion of the new funding is dedicated to M&O. • Conservation Futures funding Federal Way is supportive of legislation to provide counties with additional conservation futures taxing authority subject to public vote. However, such legislation should also contain formulas to apportion money in proportion to where the dollars are collected, provisions to ensure that conservation futures funds are distributed throughout a county over time, and safeguards to ensure cities have an adequate voice in the allocation of these funds. Rights-of-Way/Telecommunications Federal Way will again join others in guarding against passage of legislative bills and amendments that would require public agencies to pay utility relocation costs of private entities, or would otherwise infringe on local authority to manage and control the use of the public rights - of -way. In 2003, Qwest sought to undercut that authority and set a dangerous precedent in statute, with a bill that required Sound Transit to pay all Qwest costs for relocating its facilities outside of the Link Light Rail right-of-way. Successful negotiations between Sound Transit and Qwest kept this from being a 2004 issue. The City will guard against any 2005 legislative proposal that may come forth. Water -Sewer District Assumption Authority for Cities to Assume Water -Sewer Districts In the 2004 session, 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 is not 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. Specifically, Federal Way will work against water -sewer assumption laws that make these efforts more difficult, cumbersome, and costly for cities. Workers' Compensation • Legislation was brought forward in 2003 and 2004 recalculating the way workers' compensation benefits are distributed. Such legislation is expected to be the subject of considerable discussion and activity again in 2005. Businesses and employers say that the Department of Labor and Industries (L&I) 12 already has some of the richest workers' compensation benefits in the country, and prior rate increases were too high. L&I says the rate increases were necessary and that a reduced 2003 rate hike made them unavoidable. Federal Way will support efforts to reform workers' compensation in a manner that addresses some of the rapidly rising cost impacts of the system on businesses and local governments. 13 City of Federal Way 2005 Legislative Agenda Federal Issues • Sales Tax on Catalogs, Mail -Order Sales E-Commerce Federal Way supports congressional action allowing state and local governments 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. Community Development Block Grant Federal Way supports full funding of the Community Development Block Grant program. In greater Federal Way, CDBG funds support emergency services, public safety, and community -based collaborations. Federal Way opposes efforts to cut CDBG funding and has urged the state's Congressional Delegation to reverse a House Subcommittee decision to reduce FY 2005 funding levels. COPS & Local Law Enforcement Block Grants Since their inceptions in 1994 and 1996 respectively, the COPS grants and Local Law Enforcement Block Grants 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 $2.3 million and 28 police officers to Federal Way's new police department. In addition, the city has received nearly $500,000 from LLEBG. Federal Way supports maintaining federal COPS grants and Local Law Enforcement Block Grants, which provide valuable public safety funding to cities. Similarly, the City strongly opposes efforts to cut and consolidate COPS and LLEBG funding. • Transportation Equity Act for the 21 st Century (TEA-21) Federal Way supports reauthorization of the Transportation Equity Act for the 21 st Century (TEA-21) and efforts to streamline the regulation of funded projects. In addition, the City has submitted the Triangle Interchange and 348 h Street projects for inclusion in the TEA-21 "High Priority Projects" (HPP) demonstration funding category. • 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. The City was pleased to see the FY 2004 appropriations process continue funding for the stateside program. • 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 consider funding for training and overtime costs that will occur. 14 City of Federal Way 2005 Legislative Agenda Legislative Policies • Home Rule The City of Federal Way strongly supports the adoption of a constitutional home rule amendment that would guarantee decision -making authority for local matters at the local level. The City also urges the Legislature to refrain from enacting legislation that adversely impacts the concept of local self- government or restricts the ability of cities and towns to exercise existing powers and authorities. As an example, hotel/motel industry stakeholders have previously promoted initiatives to give non -elected Lodging Tax Advisory Committee members authority to trump the decisions of local elected officials — something cities successfully opposed. The City also believes the Legislature should affirm the home rule authority of cities, counties, and regional bodies to retain locally enacted and locally voted taxes and fees, a principle eroded by Initiative 776, which sought to repeal a regional transit authority funding source approved by voters and did repeal a $15 vehicle licensing fee enacted by four counties. Broad -based Authority to Utilize Cost -Effective and Flexible Policies Federal Way supports state legislative efforts to establish broad -based, cost-effective policies for local government structure, financing, and service delivery systems, combined with adequate flexibility for local governments to adapt their structures, finances, and service delivery systems to unique local conditions. These efforts must be focused on eliminating duplicate services and preserving local control over service delivery. The City also supports legislation that enhances local flexibility to address issues of local concern. Opposition to Unfunded Mandates or Inadequately Funded Mandates As directed by provisions in Initiative 62 (RCW 43.135.060) and subsequent Initiative 601, Federal Way strongly urges the Legislature, state agencies, and courts not to impose financial or operating burdens on cities unless such mandates are accompanied by the full financial resources necessary to implement them. The City opposes legislation which mandates increased local costs or which results in an inappropriate diminution of local authority over local affairs. Local Government Funding and Tax Policy Federal Way strongly supports the creation of a permanent, ongoing funding source to address the needs of cities, counties, and other local government entities in the aftermath of the elimination of the Motor Vehicle Excise Tax (MVET). The City also believes current taxing and revenue authority must be protected and not undermined, as has been attempted in recent years with efforts to remove business licensing fee authority. The City also believes municipalities should be authorized to seek a simple - majority voter approval — rather than the current 60% threshold in state law — for bond measures to fund debt service on capital facilities projects contained in an adopted Capital Facilities Plan or Transportation Improvement Plan. Further, the City suggests that future Legislatures examine the advisability of a policy that places a sales tax on infrastructure investments, such as parks and cultural arts facilities. Finally, the City believes the state should be obligated to share sales tax non -remittance penalties with local governments, in the same manner that it distributes collection of incoming sales tax. Transportation The City of Federal Way strongly believes the State of Washington must maintain primary responsibility over the funding and maintenance of the state's transportation system, and that mechanisms such as regional transportation financing should never be used as more than a supplement to the state system. The City strongly supports ongoing local funding assistance and distribution in any state transportation financing efforts, as well as funding of multiple modes of transportation. The transportation system must operate as a whole, with each part of the system receiving funding. • Economic Development, Infrastructure, Parks Open Space In an era when citizens are wary of increased taxes and fees, the City of Federal Way strongly supports legislative initiatives that provide cities with increased economic development tools capable of growing local economies and the local job base, thus providing increased revenue for local government . `I67M operations and key services. Federal Way believes that in structuring economic development programs, the state should place equal emphasis on job retention and job creation, refraining from policies that provide a preference for one over the other. The City also strongly supports legislative initiatives and funding to protect and enhance parks and open space, and legislation that ensures reliable and dependable funding for infrastructure in general. The Public Works Trust Fund (PWTF), one of the state's best infrastructure funding sources, should be protected, not diverted, and should not be required to incur a legislative approval process that results in delays, missed construction windows, and increased costs. ESA Water Resources Flood Prevention The Endangered Species Act is essentially an unfunded mandate from the federal government. In addressing the ESA and specifying requirements for local governments, the state should provide funding without exacerbating the unfunded mandate nature of ESA. Providing local governments with meaningful input and flexibility to address their unique local conditions is also critical. Federal Way supports continued state financial assistance for water supply, groundwater, stormwater, and surface water facilities, which are important in complying with state and federal water quality standards. The City also supports the authority of water districts to manage their systems, have the tools they need to address current and future supply demands, and participate in regional planning as appropriate. Finally, given the number of flood -prone areas in Federal Way, the City strongly supports and urges comprehensive flood damage prevention planning accomplished at the local level as a partnership among impacted cities, the county, state, and affected area interests. Each flood prone area is unique and should be planned for accordingly. Energy & Telecommunication: Federal Way strongly supports maintaining the authority of local governments to manage their publicly owned rights -of -way, and opposes efforts to pre-empt or diminish that authority. The City supports maintaining the requirement that private utilities bear the costs of relocating their facilities within city rights -of -way, and that local governments may charge a fee to wireless telecommunications providers seeking to locate facilities in rights -of -way. On electric industry deregulation, Federal Way supports provisions to ensure service is available at affordable and reasonable prices, that providers pay their fair share of taxes, and that local governments continue to manage industry facilities within the rights -of - way. The City also urges that in any electricity deregulation, state law should require out-of-state electricity providers to collect state and local utility taxes on services provided to in -state customers. Land -Use and Permitting Issues, Including Growth Management Shorelines Critical Areas Comprehensive Plans The City of Federal Way endorses the Growth Management Act (GMA) as an essential and responsible planning tool, and supports the land -use and permitting framework that includes the State Environmental Policy Act (SEPA), local comprehensive plans, shoreline plans, and critical areas ordinances. However, the GMA and other land -use requirements pose funding and timing challenges for local governments. Federal Way urges the Legislature to assist local governments in meeting these challenges by ensuring adequate and ongoing funding, providing sufficient time for refinements and updates of plans, and coordinating, simplifying, and streamlining existing plans and Acts. One example of simplicity and flexibility is to allow technical amendments to comprehensive plans more than once a year. The City also believes in ultimately eliminating state -level shoreline use permits and elimination of Boundary Review Boards as an outdated, obsolete function. Federal Way supports legislative initiatives requiring Growth Management Hearings Boards to defer to local decisions, policies, and processes. The City supports practical solutions to private property issues and disputes, including regulatory reform, in a manner that does not alter the constitutional definition of takings, does not place an undue financial burden on taxpayers, or diminish local governments' ability to protect the public health, safety and welfare of their communities. Finally, the City supports legislative initiatives that ensure Forest Practice permits issued within city limits or designated urban growth boundaries be subject to the same local government review process now provided for consideration and issuance of Class IV Forest Practice permits. Alternatively, cities should be allowed to adopt and enforce land clearing, significant tree protection, and related issues for Class II and III forest permits. m Social and Human Services. Housing and Public Health Federal Way supports maintenance and adequate funding of human service programs, including those that may be delegated to the state from the federal government. Any legislative action delegating federal authority should ensure appropriate local government input into development of block grant dispersal regulations or procedures and development of any new processes to assist or support low- income, high -need populations. The City supports a dedicated capital and ongoing funding source for affordable housing that is acceptable to developers, realtors, and state and local government. Such funding should be integrated into the larger social services system that supports families living in affordable housing. Federal Way also strongly supports continued state funding for public health services, and believes County Boards of Public Health should provide representative seats for city officials. Youth Issues and Juvenile Offenders Federal Way supports legislative initiatives that enhance funding to local governments to initiate and expand youth services, especially for youth violence reduction programs. The City supports enhancing the Department of Social and Health Services' (DSHS) ability to enforce day-care licensing requirements, improve services for daycare providers, and ensure accessibility to childcare for all citizens. The City supports funding for programs designed to prevent child abuse and neglect. Federal Way also supports efforts to make parents more accountable for children who are juvenile offenders, and any initiatives to provider stronger sanctions for chronic, persistent offenders, as well as greater court discretion to impose detention or secure treatment where warranted. Law Enforcement, Criminal Justice, Emergency Services Federal Way opposes legislative initiatives to remove authority and discretion for local law enforcement agencies to provide local and specialized services for their citizens. The City also opposes efforts to transfer incarceration responsibilities from the state to localities without additional funding. The City supports flexibility for police officers to enforce the state's laws anywhere in the state, better enabling officers to assist with incidents outside a city's borders and easing liability concerns. Further, given rising costs and increasing public demands in public safety and criminal justice, Federal Way strongly supports legislative initiatives to assist cities and counties with full cost recovery for items such as incarceration, driving while intoxicated (DWI).convictions, and witness costs. The City also supports measures to strengthen DWI laws, such as defining a third offense as a `felony'. Federal Way supports court admissibility of radar speed -measuring devices. Federal Way strongly supports maintaining and enhancing the emergency 911 system and opposes the unnecessary creation of non -emergency communications systems suggested in the past, such as E-311. The City also opposes, as costly and unnecessary, any legislative initiatives to mandate that all criminal interrogations be videotaped. Municipal Court Oversight and Local Authority Federal Way appreciates the need to achieve greater efficiencies in the state's court system, but strongly opposes any effort to eliminate local authority and budget/personnel oversight over Municipal Courts that have been used to control costs and increase local flexibility. The City opposes any new unfunded responsibilities placed on the local court system, and any initiatives that require increased remittance of district and municipal court revenues to the state. Federal Way further supports clarifying Municipal Court authority to hold sessions outside of city limits under certain circumstances. Finally, Federal Way urges legislative attention and focus to reducing local liability in operating misdemeanor probation and pre-trial release programs. Gambling and Liquor Control, Adult Entertainment and Retail Federal Way supports legislative initiatives that provide cities with more direct involvement in the commercial liquor license and card room application processes, along with enhanced public hearing, public input, and written comment authority. Federal Way opposes the expansion of non -Tribal gambling. The City supports confirming local government zoning authority over the location within a community of gambling establishments. The City supports the idea of model ordinance authority consistent with provisions of adult entertainment ordinances upheld by the courts. Federal Way also supports increased authority for local governments to minimize secondary impacts of adult retail establishments by adopting strict requirements for location and hours of operation. 17 Public Works: Bidding, and Contracting: Federal Way supports increasing the dollar threshold for small public works projects and exempting such projects from the state's definition of public works projects. The City supports continued streamlining and flexibility of laws and regulations governing the bidding process, including raising the ceiling of small works roster projects. On recycling, Federal Way opposes legislative and other efforts to fund countywide solid waste by allowing counties to collect a fee directly from customers of city franchisers. Personnel, Labor, and Contracting/Wage Issues: Federal Way supports civil service reform allowing cities to streamline hiring processes, diversify workforces, and recruit, retain, terminate and reward employees. The City strongly supports changes to the binding interest arbitration statutes, introducing factors such as a city's financial ability to meet contract costs, local labor market conditions, and internal equity with other city employees. The City also supports mandating final offer arbitration. Concerning prevailing wage, Federal Way supports legislation clarifying that maintenance activities performed through contract are exempt from prevailing wage requirements, as is maintenance work performed by regular employees. General Government/Governmental Operations Federal Way supports the rights of citizens to access the records and operations of their local government, but urges that full cost recovery be allowed on records retrieval. The City supports eliminating an outdated requirement that interlocal agreements be filed with county auditors, since agreements are recorded with all governments that are signatory to such an interlocal. The City further supports standardizing voter registration maintenance costs to local governments in a manner that accurately reflects the cost of maintaining such records. • Building Code Council Federal Way supports continued State Building Code Council jurisdiction over building -related codes and other codes now under its jurisdiction. • Tort Reform Issues: Federal Way supports any legislative initiatives to clarify that a defendant should not be required to join all potential "at fault" entities into litigation or risk losing the ability to apportion fault to the third party(s). Any move to the contrary would inappropriately shift the burden of proof from the plaintiffs to the defendant in proving fault. 18 TH OLL I G: _._aP �1it CE TO E(tO BY TITLE RESOLUTION NO. 04-434 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, URGING 2005 STATE LEGISLATIVE ACTION TO ADDRESS FUNDING FOR MUNICIPAL TRANSPORTATION INFRASTRUCTURE. WHEREAS, Federal Way and other Washington cities face the challenge of maintaining transportation infrastructure while also attempting to address capacity and mobility needs for their residents, businesses, and day-to-day work force; and WHEREAS, the challenge for Federal Way is made even more acute by the fact that, along with serving 84,000 residents, it is a transportation hub and through -point for two counties; home to large employers such as the Weyerhaeuser Corp. and Capital One; and location of a major theme park that is a regional and statewide destination for visitors, particularly in summer months; and WHEREAS, meeting local funding challenges has become more difficult given a series of revenue setbacks, such as: Loss of the $15 motor vehicle fee due to the repeal of Initiative 776, which will cost Federal Way $775,000 to $800,000/year in overlay funds and matching grant funding sources. - Flat and declining gas tax receipts, due to the fact that the Legislature has authorized no new gas tax distributions for cities since 1990. In Federal Way, the "Arterial Streets" portion of the gas tax that can be used for arterial mobility and capacity needs has decreased slightly from 1999, as has the "Street" portion of gas tax receipts that can be devoted to maintenance needs. Meanwhile, costs to maintain, preserve, and build streets continue to rise. • Additionally, buying power of the existing gas tax has declined nearly 40% over the past decade due to new incorporations, more fuel -efficient vehicles, etc. • The fact that the state Transportation Improvement Board (TIB), a major funding partner for local corridor capacity and mobility projects in Federal Way, also has not received any new infusion of gas tax dollars since 1990. Res. # 04-434 , Page 1 C(OPY • City general fund challenges in participating in overlay and maintenance programs, due to a sagging economy and declining local revenues. • State Supreme Court decisions to invalidate local transportation funding options that had been employed by some cities; and WHEREAS, cities' options for transportation revenues are limited at this time, while the demand for transportation infrastructure maintenance and improvement continues to grow; and WHEREAS, the last comprehensive action by the Legislature to provide direct local funding and local options for transportation funding came in 1990; and WHEREAS, in 1990, along with new direct funding, the Legislature, recognizing the need for local transportation funding, authorized four mechanisms: (1) local option fuel tax, (2) commercial parking tax, (3) street utility fee, and (4) vehicle license fee; and WHEREAS, 14 years later, these sources either lack viability or have been invalidated through court decisions or initiatives or both; and WHEREAS, as the condition of the transportation infrastructure deteriorates, the cost becomes significantly more expensive for repair or replacement, effectively doubling every 10 to 15 years; and WHEREAS, absent adequate funding for critical maintenance -and overlay work, the condition of Federal Way's streets would decline from a very good 87 out of 100 rating; and WHEREAS, the cost to the public extends beyond these direct costs in the form of impacts on the quality of life; on the business investment climate; on transportation safety; and on the ability to travel without facing delays, detours and congestion; and WHEREAS, along with the lack of resources to maintain the existing transportation network, Federal Way is hard-pressed to make capital improvements in transportation infrastructure, as evidenced by the fact that funding is not available to do all the projects in its 6- Year Transportation Improvement Plan (TIP) — even though many of these are dictated by "concurrency" requirements in state law; and WHEREAS, nearly all other cities face similar problems; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, HEREBY RESOLVES AS FOLLOWS: Section 1. New Direct Funding. The City of Federal Way calls upon the Governor and the Legislature to provide new direct funding to pay for transportation infrastructure needs Section 2. New Funding Options. The City of Federal Way also calls on the Governor and Legislature to provide new funding options and tools that may be enacted at the local level Res. # 04-434 , Page 2 Section 3. Call to Other Cities. The City of Federal Way encourages other Washington municipalities to join in this call by passing similar resolutions as a means of conveying the severity and urgency of the situation. Section 4. Severability. If any section, sentence, clause or phrase of this resolution should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this resolution. Section 5. Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed. Section 6. Effective Date. This resolution shall be effective immediately upon passage by the Federal Way City Council. RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON this 1 th day of November , 2004. A CITY- FEDERAL WAY AYOR, DEAN McCO GAN CLERK, N. CHRIST"INE GREEN, CMC APPROVED AS TO FORM: CITY ATTORNEY, PATRICIA A. RICHARDSON FILED WITH THE CITY CLERK: 11/9/04 PASSED BY THE CITY COUNCIL: 11/16/04 RESOLUTION NO.: 04-434 KAresolution\muni transportation infrastructure 2005 legislation Res. # 04-434 , Page 3