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FEDRAC PKT 10-23-2018 CITY OF A Federal Way FINANCE/ECONOMIC DEVELOPMENT/REGIONAL AFFAIRS COMMITTEE [FEDRAC] TUESDAY—October 23,2018 FEDERAL WAY CITY HALL 4:30 P.M. AGENDA HYLEBOS ROOM 1. CALL TO ORDER 2. PUBLIC COMMENT 3. COMMITTEE BUSINESS Page# Presenter/ Action or Topic Title/Description Time Allotted Discussion A. APPROVAL OF SUMMARY MINUTES -SEPTEMBER 25,2018 3 R.BUCK ACTION $MINUTES 10/23 Committee APPROVAL OF SPECIAL FEDRAC MEETING MINUTES - R.BUCK ACTION B. OCTOBER 8,2018 7 5 MINUTES 10/23 Committee C. ORDINANCE:AMENDING BUSINESS REGISTRATION CODE 11 E. RHOADES ACTION SECTIONS 10 MINUTES 11/6 FIRST READING GRANT ACCEPTANCE—WASHINGTON STATE ARCHIVES S.COURTNEY ACTION D 37 TECHNOLOGY TOOLS GRANT AWARD 10 MINUTES 11/6 Council Consent PURCHASE OF PUBLIC RECORDS REQUEST SOFTWARE—GOVQA T.FICHTNER ACTION E 45 WITH LOCAL GRANT AWARD 10 MINUTES 11/6 Council Consent F. PAEC SIGNAGE CONCEPTS AUTHORIZATION TO BID 51 S•IKERD ACTION 10 MINUTES 11/6 Council Consent G. RESOLUTION:2018 FEE SCHEDULE AMENDMENT 59 B.DAVIS ACTION 10 MIN 11/6 Council Consent H. VOUCHERS— SEPTEMBER 2018 79 A.ARIWOOLA ACTION 5 MINUTES 11/6 Council Consent I. MONTHLY FINANCIAL REPORT-SEPTEMBER 2018 105 A.ARIWOOLA ACTION 10 MINUTES 11/6 Council Consent 4. OTHER 5. FUTURE AGENDA ITEMS NEXT MEETING: November 27,2018 @ 4:30 City Staff. Dini Duclos, Chair Ade Ariwoola, Finance Director Hoang Tran Robyn Buck,Administrative Assistant Lydia Assefa-Dawson 253-835-2527 CITY OF Federal Way This page was intentionally left blank. 2 CITY'0i Federal Way City Council Finance/Economic Development/Regional Affairs Committee Tuesday, September 25, 2018 Federal Way City Hall 4:30 p.m. SUMMARY MINUTES Hylebos Conference Room CALL TO ORDER: Committee Chair Duclos called the meeting to order at 4:33 p.m. COMMITTEE MEMBERS IN ATTENDANCE: Councilmember Tran, Councilmember Assefa- Dawson COMMITTEE MEMBER EXCUSED: COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Honda, Councilmember Koppang STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; City Attorney, Ryan Call; Parks and Recreation Director, John Hutton; Community Center Manager, Doug Nelson; Accounting Manager, Kristen Trivelas; Administrative Assistant, Robyn Buck OTHERS PRESENT: Patience Malaba, Housing Development Consortium; John Howell, CedarRiver Group; Dana Hollaway, Federal Way citizen; Clifford Gehrett, Squaw Peak Properties LLC PUBLIC COMMENT: Ms. Hollaway read her statement on agenda item B. She expressed concern about adding affordable/low income housing and how it would negatively affect Federal Way. Mr. Gehrett commented on unrestricted revenue from the sale of marijuana and marijuana products. According to his calculations, Federal Way could receive $670k in unrestricted revenue. APPROVAL OF SUMMARY MINUTES: Motion to approve the minutes from July 24, 2018 as written; motion seconded and carried 3-0. SOUTH KING HOUSING AND HOMELESSNESS PARTNERSHIP (SKHHP): Presented by Patience Malaba. Data shows 2/3 of people living below the poverty level live in South King County. This is the last year cities can decide if they want to be part of the interlocal agreement. Financial Tuesday, September 25, 2018 Page 1 3 CITY'0i Federal Way commitment depends on the number of cities that agree to participate. Assuming all cities would participate, it could cost the City of Federal Way approximately $24-$35k per year (with 1.5 or 2 FTE). There may be a possibility that the cost for cities in the agreement may depend on population. Motion to forward the to the October 2, 2018 council business agenda for presentation; motion seconded and carried 3-0. AUTHORIZATION TO ACCEPT $100,000 GRANT FROM 4CULTURE FOR SIGNAGE AT THE PAEC: Presented by Parks and Recreation Director, John Hutton. The intent is that the signage would be able to accommodate an additional name when naming rights are sold. Proposals from companies will continue to be sought and will be brought back to Committee. The plan is to have three signs. It is unclear at this time if the sign code will preclude getting signs. The companies being solicited for bids have been provided with the current Federal Way Revised code. Motion to forward the AUTHORIZATION TO ACCEPT$100,000 GRANT FROM 4CULTURE FOR SIGNAGE AT THE PAEC to the October 2, 2018 consent agenda for approval; motion seconded and carried 3-0. RESOLUTION: AUTHORIZATION OF A $500,000 INTERFUND LOAN TO THE PAEC OPERATIONS CHECKING ACCOUNT: Presented by Parks and Recreation Director, John Hutton. This loan is to ensure sufficient operating funds are in the PAEC operations checking account. This is for cash flow management (per the management contract), not support for the facility itself. Motion to forward the RESOLUTION:AUTHORIZATION OFA $500,000 INTER FUND LOAN TO THE PAEC OPERATIONS CHECKING ACCOUNT to the October 2, 2018 consent agenda for approval; motion seconded and carried 3-0. OPERABLE WALL REPLACEMENT: Presented by Community Center Manager, Doug Nelson. Mr. Nelson is requesting authorization to use North West Architectural Products, who originally installed the wall to build the replacement wall using grant monies from King County. The grant will cover the cost of the wall, however this is not in the 2018 budget; therefore this will need to be documented in a budget amendment for 2018. Motion to forward the OPERABLE WALL REPLACEMENT, to the October 2, 2018 consent agenda for approval; motion seconded and carried 3-0. Tuesday, September 25, 2018 Page 2 4 CITY'0i Federal Allay VOUCHERS—JULY 2018: Presented by Finance Director, Ade Ariwoola. Mr. Ariwoola answered questions from an email from Deputy Mayor Honda. Motion to forward the Vouchers to the October 2, 2018 consent agenda for approval; motion seconded and carried 3-0. VOUCHERS —AUGUST 2018: Presented by Finance Director, Ade Ariwoola. There were no questions on the vouchers. Motion to forward the Vouchers to the October 2, 2018 consent agenda for approval; motion seconded and carried 3-0. MONTHLY FINANCIAL REPORT—JULY 2018: Presented by Finance Director, Ade Ariwoola. Mr. Ariwoola summarized the Monthly Financial Report. Notable areas included: • CD Permits and Fees — Still doing a lot of processing despite being short-handed • Property Tax —Above 2018 year to date • Sales Tax — Doing well • Probation Revenue — $45k less than the expenditure, state law prohibits a city from aggressive collection of fees from indigent citizens Motion to forward approval of the MONTHLY FINANCIAL REPORT—JULY 2018 to the October 2, 2018 consent agenda for approval; motion seconded and carried 3-0. MONTHLY FINANCIAL REPORT—AUGUST 2018: Presented by Finance Director, Ade Ariwoola. Mr. Ariwoola summarized the Monthly Financial Report. Notable areas included: • CD Permits and Fees — Doing really well • Sales Tax — Doing well • Court Revenue — Below year to date budget due to reallocation of traffic officers • REET— Slowing down • Dumas Bay — Doing well • FWCC— Doing well • Utility Tax — Increased due to the weather (heat) Motion to forward approval of the MONTHLY FINANCIAL REPORT—AUGUST 2018 to the October 2, 2018 consent agenda for approval; motion seconded and carried 3-0. NEXT MEETING: Tuesday, October 23, 2018 @ 4:30 p.m. Tuesday, September 25, 2018 Page 3 5 CITY OF Federal Way MEETING ADJOURNED: 6:07 p.m. Tuesday, September 25, 2018 Page 4 6 CITY'0i Federal Way City Council Finance/Economic Development/Regional Affairs Committee Monday October 8, 2018 SPECIAL MEETING Federal Way City Hall 5:00 P.M. SUMMARY MINUTES Hylebos Conference Room CALL TO ORDER: Committee Chair Duclos called the meeting to order at 5:00 p.m. COMMITTEE MEMBERS IN ATTENDANCE: Councilmember Tran, Councilmember Assefa- Dawson COMMITTEE MEMBER EXCUSED: COUNCILMEMBERS IN ATTENDANCE: Councilmember Koppang, Councilmember Johnson; Councilmember Moore STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; Assistant City Attorney, Mark Orthman; Parks and Recreation Director, John Hutton; Economic Development Director, Tim Johnson; IT Manager, Thomas Fichtner; Accounting Manager, Kristin Trivelas; Administrative Assistant, Robyn Buck OTHERS PRESENT: Dana Hollaway, Rebecca Martin, Bob Roegner, Jack Walsh, Dennis L Styles PUBLIC COMMENT: Mr. Walsh commented that he thinks a marijuana tax and allowing cannabis shops in Federal Way would be a mistake. He is against increase on business registration fees and B&O Tax. Mr. Styles disagrees with Mr. Walsh. Mr. Styles thinks there would be a way to regulate where stores are located. Other entities around us do that. REVENUE SUSTAINABILITY DISCUSSION: These are potential revenue ideas ONLY. Committee members are not agreeing to nor are they condoning any of these ideas. Committee Chair Duclos suggested that the Committee categorize the list from the previous Special FEDRAC Meeting. *Please see attached spread sheet Monday, October 8, 2018 Page 1 7 CITY'0i Federal Allay Mr. Johnson commented that the abandoned shopping carts volunteer is no longer collecting the carts. He suggests Federal Way work toward a fee based system to collect the carts. It would be cost recovery oriented. Stores do not want the carts back because they cannot afford to clean them. The next step for this Committee is to understand the challenges associated with these ideas. Committee Chair Duclos requested that Department Directors review these ideas and let the Committee know if these are likely revenue sources and what are the snags in getting these implemented. Mr. Ariwoola and Mr. Hutton were asked to distribute this to Directors. Information only. CURRENT DEBT COMMITMENTS DISCUSSION: Presented by Finance Director, Ade Ariwoola. There was no discussion. NEXT MEETING: Monday, October 29, 2018 @ 5:00 p.m. MEETING ADJOURNED: 6:12 p.m. Monday, October 8, 2018 Page 2 8 aA N UA _� QJ cC QJ N C6 ate-+ i U L � � L _N L O Q an O cC U N 0- O L Q) C= N = Q U dJ Ln L N aU—+ C1A o N LO ; L UA Lr) — U CU UA U (Q Q i Ln :-6E ca Q) Q) ++ L E f6 \ -WN Q) L N L N -0D f6 Q L O C2 (A �A 4J N O L t i U 4f Ln -/ Y m Q) 1 Q r C2 L Q N N C6 p — vi Q) •� m Q) ULA +O O i � fB i :++ L f6 ++ QJ L U L _ O O E p •v L 0- Q Q) S� p CC L Q — U O m U CO V) V) V) LL U G N C � v Q) 00 � L � N Q) O � � N � °; co M J C6 4- W � 0 U 06 m O N tlA 4- U cu - L O p +� ; � N +� O L CU _0 N �. CC x > m r— +-1 1 .2 N X O _ O �+ Q) CO X C: +-+ +-' m m U fC N f6 U +-+ O U UA �_ V fB N 'i N > —0 L J U CC6 O Q C6 C Z O ra V) J CITY OF Federal Way This page was intentionally left blank. 10 COUNCIL MEETING DATE: November 6,2018 ITEM#: ............. . .......... CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: ORDINANCE: AMENDING BUSINESS REGISTRATION CODE SECTIONS. POLICY QUESTION: Should the City of Federal Way amend its code to comply with state law related to the definition and revenue threshold of what constitutes engaging in business? COMMITTEE: Finance, Economic Development, and Regional Affairs MEETING DATE: Oct 23, 2018 CATEGORY: ❑ Consent ® Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Eric Rhoades DEPT: City Attorney's Office Attachments: Staff Report Ordinance Options Considered: 1) Pass the ordinance as proposed. 2) Propose modifications to the proposed ordinance and pass it with modifications. 3) Decline to pass an ordinance. ........_. ....... MAYOR'S RECOMMENDATION: Option 1 MAYOR APPROVAL: iq.—tz r7 DIRECTOR APPROVAL: 312 C (p Can Council Initial/Date lnitial/Date COMMITTEE RECOMMENDATION: I move to forward the proposed ordinance to First Reading on November 6, 2018. Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION(S): FIRST READING OF ORDINANCE (DATE): "I move to forward approval of the proposed ordinance to the November 20, 2018 Council Meeting for second reading and enactment. " SECOND READING OF ORDINANCE(DATE): "I move approval of the proposed ordinance." (BELOW TO BE COMPLETED BY CITY CLERK'S OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL[SILL# ❑ DENIED First reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING(ordinances only) ORDINANCE# REVISED— 12/2017 RESOLUTION# 11 A�k CITY OF Fe d e ra N Way CITY ATTORNEY'S OFFICE COUNCIL MEETING STAFF REPORT DATE: OCTOBER 23,2018 TO: CITY COUNCIL VIA: JIM FERRELL,MAYOR .1, RYAN CALL,CITY ATTORNEY ADE ARI WOOLA, DIRECTOR OF FINANCE FROM ERIC RHOADES.ASSISTANT CITY ATTORNEY SUBJECT: STATE LAW AFFECTING LOCAL BUSINESS REGISTRATION Financial Impacts This ordinance will have negligible impact on the City's direct expenses to implement the change in the business registration process. Revenues will be decreased by revising the business registration code provisions but the City does not have sufficient information to predict the amount. The City's revenue will be reduced to the extent that any current business registrants located outside the City have gross sales in Federal Way of $2,000 or less. But the City does not collect gross sales information and so cannot detennine how many businesses fall in this category. There are currently 2,041 registered businesses outside the City (outside contractors). Businesses with ten or fewer employees currently pay an annual registration fee of $80. As an example, if 200 of these outside contractors have gross sales in Federal Way of$2,000 or less, and if those 200 also have ten or fewer employees, the City's revenue would decrease by 200 registration fees of $80 each or a total decrease of$16,000. The business registration fees are credited to the Finance Department, in general fund account 001-0000-000-321-60-001. Background Information: In 2017, the State of Washington enacted Laws of 2017, Chapter 209 (attached as Exhibit A), now codified as Chapter 35.90 RCW. This statute affects the businesses the City may impose a business license fee on by standardizing the definition of engaging in business and by setting a minimum business revenue threshold. 12 The statute provides that, by January 1, 2019, each city that charges a fee for a business license must adopt model provisions for a gross sales threshold and a definition of "engaging in business." In response to the legislation, Washington cities, working through the Association of Washington Cities, formed a model ordinance development committee. The committee developed the model provisions (attached as Exhibit B). The threshold is $2,000 if the business does not maintain a place of business within the jurisdiction. The model provisions also include a lengthy definition of engaging in business that clarifies among other things, that acting as a customer of businesses within a city does not constitute engaging in business. The proposed ordinance adopts the mandatory model provisions developed by the Association of Washington Cities committee. Cities that do not adopt the mandatory model provisions by January 1, 2019 will no longer be authorized to collect a fee for business registration. 13 ORDINANCE NO. AN ORDINANCE of the City of Federal Way, Washington, relating to business registration within Federal Way; and amending FWRC 12.05.010, 12.05.040, and 12.05.070; and adding new section FWRC 12.05.008. (Amending Ordinance Nos. 91-086, 09-599, 09-600, and 12- 717) WHEREAS, the City of Federal Way ("City") is a non-charter code city under Title 35A of the Revised Code of Washington ("RCW"); and WHEREAS, pursuant to RCW 35A.11.020, the City may adopt and enforce ordinances of all kinds relating to and regulating its local or municipal affairs and appropriate to the good government of the city; and WHEREAS, as required by Washington Laws of 2017, Chapter 209 (Engrossed House Bill 2005), the model ordinance development committee organized by the Association of Washington Cities, developed and adopted mandatory model ordinance provisions on general business license requirements; and WHEREAS, RCW 35.90.080 requires that a city that imposes a general business license requirement must adopt the mandatory provisions by January 1, 2019; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. FWRC 12.05.010 is hereby amended to read: 12.05.010 Definitions. The definitions in this section apply throughout this title unless the context clearly requires Ordinance No. 18- Page I of 8 Rev 1/18 14 otherwise. Terms not defined here are defined according to FWRC 1.05.020. "Business" Shmews, and all other- matters eandueted or engaged in A4th the object le afiai lklithl!l tile 611. "Engaging in business" means: (1) Commencing. conducting. or c011til7uing in business. and also the exercise of corporate or franchise powers. as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. (2) This section sets forth examples of activities that constitute engaging in business in the City . and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimus business activities in the City without having to pay a business license fee. The activities listed in this section are illustrative only and are not intended to narrow the definition of"engaging in business" in subsection (1). If an activity is not listed whether it constitutes engaging in business in the Citv shall be determined by considering all the facts and circumstances and applicable law. (3) With{rut being all inclusive. any one of the following activities coiiducted within the City by a peisoiior its employee agent. representative. independent contractor. broker or another acting, on its behalf constitutes engaging in business and requires a person to register and obtain a business license. Ordinance No. 18- Page 2 of 8 Rev 1/18 15 a Owninrr renting, leasing, maintaining. or havinp, the right to use, or usin . tangible personal property, uitan ing le }personal property, or real property pennanently or temporarily located in the City. b Owning, rentiny, leasing. using, or maintaining, an office, place of business, or other establishment in the City. (c) Soliciting sales. d Making repairs or providing maintenance or service to real or tangible personal property. including warranty work and property maintenance. (e) Providing technical assistance or service. including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf. (f) Installing, constructing. or supervising installation or construction of, real or tangible personal property_. ,) Soliciting, negotiating, or approving franchise. license, or other similar agreements. (h) Collecting current or delinquent accounts. (i) Picking up and transporting tangible pusonal property, solid waste. construction debris, or excavated materials. (i) Providing disinfecting and pest control services, employment and labor pool services. home nursing care, janitorial services, appraising, landscape architectural services. security system services, surveying, and real estate services including the listing of homes and managing real property_. Ordinance No. 18- Page 3 of 8 Rev 1/18 16 k Renderin( professional services such as those provided by accountants architects, attorneys auctioneers consultants, engineers, professional athletes. barbers. baseball clubs and other sports organizations. chemists, consultants, psychologists. court reporters. dentists. doctors. detectives. laboratory operators. teachers, veterinarians, (1) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. 7n Trainiii�l or recruitin a encs, representatives independent contractors. brokers or others domiciled or operating on a job in the City. acting, on its behalf, or for cusLomers or potential Customers. [ri) Investigating resolving. or otherwise assisting in resolving customer complaints. (o) In-store stocking --y a or manipulatingproducts or goods, said to and owned_ customer, regardless of where sale and delivery of the goods took place. {p) Delivering goods in vehicles owned rented, leased, used, or maintained by the person or another acting on its behalf. (4) If a person, or its employee. agent, representative independent contractor,_broker or another actin,g on theperson's behalf, engages in no other activities in or with the City. but the following. it need not register and obtain a business license. a Meeting with suppliers of goods and services as a customer. (b) Meeting with government representatives in their official capacity, other than those perfonuing contracting or put-chasing functions. (c) Attending meetings such as board meetings retry ats, seminars. rind_ conferences. or Ordinance No. 18- Page 4 of 8 Rev 1/18 17 other meetings wherein the person does not provide training in connection with tangible personal 1roperty sold by the person or on its behalf. This provision does not apply to any board of director member or attendee engaging in business such as a member of a board of directors who attends aboard meeting. d) Renting tangible or intangible propen as a customer when the property` is not used in the City. (e) Attending, but not participating in a "trade show" or "multiple vendor events". Persons participating at a trade show shall review the City's trade show or multi ale vendor event ordinances. l Conducting advertising through the mail. tg Soliciting sales by phone from a location outside the City. (5) A seller located outside the City merely delivering Qoods into the Cid by means of common carrier is iiot required to register and obtain a business license provided that it enjaages in no other business activities in the City. Such activities do not include those in subsection (4). (6) The Citv expressly intends that engaging in business include any activity sufficient to establish nexus for purposes of applying the license fee under the law and the constitutions of the United States and the State of Washington. Nexus is presumed to continue as Iong as the taxpayer benefits from the activity that constituted the original neXLIS generating contact or subsequent contacts. "Premises" means all lands, structures and places, and also any personal property which either is affixed to, or is used in connection with any such business conducted on such premises. Ordinance No. 18- Page 5 of 8 Rev 1/18 18 Section 2. FWRC 12.05.040 is hereby amended to read as follows: 12.05.040 Business registration. All lie persons shat trans^^+, engaginge in business, tfade, prefes4e, eI �tpati. alling t — ,.4vitT in the city of Federal Way withe shall first obtain 1ving been issued a proper and current registration, or if applicable, a temporary business registration as provided in FWRC 12.25.020, in addition to any other required federal, state, local, or city licenses; unless the person has filed and qualified for exemptions therefrom. Section 3. FWRC 12.05.070 is hereby amended to read as follows: 12.05.070 Exemptions. The following shall be required to obtain a registration under this chapter, but shall not be required to pay any fee: (1) Business activities carried on by nonprofit organizations, including but not limited to religious, civic, charitable, benevolent, nonprofit, cultural, or youth organizations. (2) Any business or activity which is exempt from payment of such fees as prescribed by this chapter by virtue of applicable provisions of the federal or state constitution or applicable federal or state statutes shall be exempt from the registration requirement of this chapter. (3) Any religious society, association or corporation which operates any charitable hospital, clinic, or institution devoted exclusively to the care or healing of human beings. (4) Any farmer, gardener or other person who sells, delivers, or peddles any fruit, vegetables, berries, butter, eggs, fish, milk, poultry, or meats or any farm produce or edibles raised, caught, produced, or manufactured by such person in any place in this state. Ordinance No. 18- Page 6 of 8 Rev 1/18 19 S An erson or business whose annual value of products. P-ross proceeds of sales. or-gross income of the lousiness in the city is equal to or less than $2.000 and who does not maintain a place of business within the city. Section 4. Severability. Should any section, subsection, paragraph, sentence, clause, phrase, or portion of this ordinance, or its application to any person or situation, be declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of this ordinance or its application to any other person or situation. The City Council of the City of Federal Way hereby declares that it would have adopted this ordinance and each section, subsection, paragraph, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, paragraphs, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. Section 5. Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of scrivener/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 6. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. Section 7. Effective Date. This ordinance shall take effect and be in force beginning January 1, 2019. Ordinance No. I8- Page 7 of 8 Rev 1/18 20 PASSED by the City Council of the City of Federal Way this day of . 2018. CITY OF FEDERAL WAY: JIM FERRELL, MAYOR ATTEST: STEPHANIE COURTNEY, CMC, CITY CLERK APPROVED AS TO FORM: J. RYAN CALL, CITY ATTORNEY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO.: Ordinance No. 18- Page 8 of 8 Rev 1/18 21 Exhibit A CERTIFICATION OF ENROLLMENT ENGROSSED HOUSE BILL 2005 Chapter 209, Laws of 2017 65th Legislature 2017 Regular Session MUNICIPAL BUSINESS LICENSING--STATE PARTNERSHIP--TAX APPORTIONMENT EFFECTIVE DATE: 7/23/2017 Passed by the House April 17, 2017 CERTIFICATE Yeas 97 Nays 0 I, Bernard Dean, Chief Clerk of the House of Representatives of the FRANK CHOPP State of Washington, do hereby is att Speaker of the House of Representatives certify that the ENGROSSED OUSE BILL 2005 aasepassed by House of Representatives and the Senate on the dates hereon set Passed by the Senate April 12, 2017 forth. Yeas 49 Nays 0 BERNARD DEAN CYRUS HABIB Chief Clerk President of the Senate Approved May 5, 2017 10:37 AM FILED May 5, 2017 Secretary of State JAY INSLEE State of Washington Governor of the State of Washington 22 ENGROSSED HOUSE BILL 2005 AS AMENDED BY THE SENATE Passed Legislature - 2017 Regular Session State of Washington 65th Legislature 2017 Regular Session By Representatives Lytton, Nealey, Kagi, and Ormsby Read first time 02/07/17 . Referred to Committee on Finance. 1 AN ACT Relating to improving the business climate in this state 2 by simplifying the administration of municipal general business 3 licenses ; adding a new chapter to Title 35 RCW; and creating a new 4 section. 5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 6 NEW SECTION. Sec. 1 . The definitions in this section apply 7 throughout this chapter unless the context clearly requires 8 otherwise . 9 (1) "Business licensing service, " "business licensing system, " 10 and "business license" have the same meaning as in RCW 19 . 02 . 020 . 11 (2) "City" means a city, town, or code city. 12 (3) "Department" means the department of revenue . 13 (4) "General business license" means a license, not including a 14 regulatory license or a temporary license, that a city requires all 15 or most businesses to obtain to conduct business within that city. 16 (5) "Partner" means the relationship between a city and the 17 department under which general business licenses are issued and 18 renewed through the business licensing service in accordance with 19 chapter 19 . 02 RCW. 20 (6) "Regulatory business license" means a license, other than a 21 general business license, required for certain types of businesses p. 1 EHB 2005 .SL 23 1 that a city has determined warrants additional regulation, such as 2 taxicab or other for-hire vehicle operators, adult entertainment 3 businesses, amusement device operators, massage parlors, debt 4 collectors, door-to-door sales persons, trade-show operators, and 5 home-based businesses . 6 NEW SECTION. Sec. 2 . (1) Except as otherwise provided in 7 subsection (7) of this section, a city that requires a general 8 business license of any person that engages in business activities 9 within that city must partner with the department to have such 10 license issued, and renewed if the city requires renewal, through the 11 business licensing service in accordance with chapter 19 . 02 RCW. 12 (a) Except as otherwise provided in subsection (3) of this 13 section, the department must phase in the issuance and renewal of 14 general business licenses of cities that required a general business 15 license as of July 1, 2017, and are not already partnering with the 16 department, as follows : 17 (i) Between January 1, 2018, and December 31, 2021, the 18 department must partner with at least six cities per year; 19 (ii) Between January 1, 2022 , and December 31, 2027 , the 20 department must partner with the remaining cities; or 21 (iii) Between July 1, 2017 and December 31, 2022 , the department 22 must partner with all cities requiring a general business license if 23 specific funding for the purposes of this subsection (iii) is 24 appropriated in the omnibus appropriations act . 25 (b) A city that imposes a general business license requirement 26 and does not partner with the department as of January 1, 2018 , may 27 continue to issue and renew its general business licenses until the 28 city partners with the department as provided in subsection (4) of 29 this section. 30 (2) (a) A city that did not require a general business license as 31 of July 1, 2017 , but imposes a new general business license 32 requirement after that date must advise the department in writing of 33 its intent to do so at least ninety days before the requirement takes 34 effect . 35 (b) If a city subject to (a) of this subsection (2) imposes a new 36 general business license requirement after July 1, 2017 , the 37 department, in its sole discretion, may adjust resources to partner 38 with the imposing city as of the date that the new general business 39 licensing requirement takes effect. If the department cannot p. 2 EHB 2005 .SL 24 1 reallocate resources, the city may issue and renew its general 2 business license until the department is able to partner with the 3 city. 4 (3) The department may delay assuming the duties of issuing and 5 renewing general business licenses beyond the dates provided in 6 subsection (1) (a) of this section if : 7 (a) Insufficient funds are appropriated for this specific 8 purpose; 9 (b) The department cannot ensure the business licensing system is 10 adequately prepared to handle all general business licenses due to 11 unforeseen circumstances; 12 (c) The department determines that a delay is necessary to ensure 13 that the transition to mandatory department issuance and renewal of 14 general business licenses is as seamless as possible; or 15 (d) The department receives a written notice from a city within 16 sixty days of the date that the city appears on the department ' s 17 biennial partnership plan, which includes an explanation of the 18 fiscal or technical challenges causing the city to delay joining the 19 system. A delay under this subsection (3) (d) may be for no more than 20 three years . 21 (4) (a) In consultation with affected cities and in accordance 22 with the priorities established in subsection (5) of this section, 23 the department must establish a biennial plan for partnering with 24 cities to assume the issuance and renewal of general business 25 licenses as required by this section. The plan must identify the 26 cities that the department will partner with and the dates targeted 27 for the department to assume the duties of issuing and renewing 28 general business licenses . 29 (b) By January 1, 2018 , and January 1st of each even-numbered 30 year thereafter, the department must submit the partnering plan 31 required in (a) of this subsection (4) to the governor; legislative 32 fiscal committees; house local government committee; senate 33 agriculture, water, trade and economic development committee; senate 34 local government committee; affected cities; association of 35 Washington cities; association of Washington business; national 36 federation of independent business; and Washington retail 37 association. 38 (c) The department may, in its sole discretion, alter the plan 39 required in (a) of this subsection (4) with a minimum notice of 40 thirty days to affected cities . p. 3 EHB 2005 .SL 25 1 (5) When determining the plan to partner with cities for the 2 issuance and renewal of general business licenses as required in 3 subsection (4) of this section, cities that notified the department 4 of their wish to partner with the department before January 1, 2017, 5 must be allowed to partner before other cities . 6 (6) A city that partners with the department for the issuance and 7 renewal of general business licenses through the business licensing 8 service in accordance with chapter 19 . 02 RCW may not issue and renew 9 those licenses . 10 (7) A city may decline to partner with the department for the 11 issuance and renewal of a general business license as provided in 12 subsection (1) of this section if the city participates in the online 13 local business license and tax filing portal known as "FileLocal" as 14 of July 1, 2020 . For the purposes of this subsection (7) , a city is 15 considered to be a FileLocal participant as of the date that a 16 business may access FileLocal for purposes of applying for or 17 renewing that city' s general business license and reporting and 18 paying that city' s local business and occupation taxes . A city that 19 ceases participation in FileLocal after July 1, 2020, must partner 20 with the department for the issuance and renewal of its general 21 business license as provided in subsection (1) of this section. 22 (8) By January 1, 2019 , and each January 1st thereafter through 23 January 1, 2028 , the department must submit a progress report to the 24 legislature. The report required by this subsection must provide 25 information about the progress of the department ' s efforts to partner 26 with all cities that impose a general business license requirement 27 and include: 28 (a) A list of cities that have partnered with the department as 29 required in subsection (1) of this section; 30 (b) A list of cities that have not partnered with the department; 31 (c) A list of cities that are scheduled to partner with the 32 department during the upcoming calendar year; 33 (d) A list of cities that have declined to partner with the 34 department as provided in subsection (7) of this section; 35 (e) An explanation of lessons learned and any process 36 efficiencies incorporated by the department; 37 (f) Any recommendations to further simplify the issuance and 38 renewal of general business licenses by the department; and 39 (g) Any other information the department considers relevant . p. 4 EHB 2005 .SL 26 1 NEW SECTION. Sec. 3. (1) A general business license that must 2 be issued and renewed through the business licensing service in 3 accordance with chapter 19 . 02 RCW is subject to the provisions of 4 this section. 5 (2) (a) A city has broad authority to impose a fee structure as 6 provided by RCW 35 .22 . 280, 35 . 23 . 440, and 35A. 82 . 020 . However, any 7 fee structure selected by a city must be within the department ' s 8 technical ability to administer. The department has the sole 9 discretion to determine if it can administer a city' s fee structure . 10 (b) If the department is unable to administer a city' s fee 11 structure, the city must work with the department to adopt a fee 12 structure that is administrable by the department. If a city fails to 13 comply with this subsection (2) (b) , it may not enforce its general 14 business licensing requirements on any person until the effective 15 date of a fee structure that is administrable by the department . 16 (3) A general business license may not be renewed more frequently 17 than once per year except that the department may require a more 18 frequent renewal date as may be necessary to synchronize the renewal 19 date for the general business license with the business ' s business 20 license expiration date . 21 (4) The business licensing system need not accommodate any 22 monetary penalty imposed by a city for failing to obtain or renew a 23 general business license. The penalty imposed in RCW 19 . 02 . 085 24 applies to general business licenses that are not renewed by their 25 expiration date . 26 (5) The department may refuse to administer any provision of a 27 city business license ordinance that is inconsistent with this 28 chapter. 29 NEW SECTION. Sec. 4 . The department is not authorized to 30 enforce a city' s licensing laws except to the extent of issuing or 31 renewing a license in accordance with this chapter and chapter 19 . 02 32 RCW or refusing to issue a license due to an incomplete application, 33 nonpayment of the appropriate fees as indicated by the license 34 application or renewal application, or the nonpayment of any 35 applicable penalty for late renewal . 36 NEW SECTION. Sec. 5 . Cities whose general business licenses are 37 issued through the business licensing system retain the authority to 38 set license fees, provide exemptions and thresholds for these P. 5 EHB 2005 .SL 27 1 licenses, approve or deny license applicants, and take appropriate 2 administrative actions against licensees . 3 NEW SECTION. Sec. 6. Cities may not require a person to obtain 4 or renew a general business license unless the person engages in 5 business within its respective city. For the purposes of this 6 section, a person may not be considered to be engaging in business 7 within a city unless the person is subject to the taxing jurisdiction 8 of a city under the standards established for interstate commerce 9 under the commerce clause of the United States Constitution. 10 NEW SECTION. Sec. 7 . A general business license change enacted 11 by a city whose general business license is issued through the 12 business licensing system takes effect no sooner than seventy-five 13 days after the department receives notice of the change if the change 14 affects in any way who must obtain a license, who is exempt from 15 obtaining a license, or the amount or method of determining any fee 16 for the issuance or renewal of a license . 17 NEW SECTION. Sec. 8 . (1) (a) The cities, working through the 18 association of Washington cities, must form a model ordinance 19 development committee made up of a representative sampling of cities 20 that impose a general business license requirement . This committee 21 must work through the association of Washington cities to adopt a 22 model ordinance on general business license requirements by July 1, 23 2018 . The model ordinance and subsequent amendments developed by the 24 committee must be adopted using a process that includes opportunity 25 for substantial input from business stakeholders and other members of 26 the public . Input must be solicited from statewide business 27 associations and from local chambers of commerce and downtown 28 business associations in cities that require a person that conducts 29 business in the city to obtain a general business license. 30 (b) The department, association of Washington cities, and 31 municipal research and services center must post copies of, or links 32 to, the model ordinance on their internet web sites . Additionally, a 33 city that imposes a general business license requirement must make 34 copies of its general business license ordinance or ordinances 35 available for inspection and copying as provided in chapter 42 . 56 36 RCW. p. 6 EHB 2005 .SL 28 1 (c) The definitions in the model ordinance may not be amended 2 more frequently than once every four years, except that the model 3 ordinance may be amended at any time to comply with changes in state 4 law or court decisions . Any amendment to a mandatory provision of the 5 model ordinance must be adopted with the same effective date by all 6 cities . 7 (2) A city that imposes a general business license requirement 8 must adopt the mandatory provisions of the model ordinance by January 9 1, 2019 . The following provisions are mandatory: 10 (a) A definition of "engaging in business within the city" for 11 purposes of delineating the circumstances under which a general 12 business license is required; 13 (b) A uniform minimum licensing threshold under which a person 14 would be relieved of the requirement to obtain a city' s general 15 business license . A city retains the authority to create a higher 16 threshold for the requirement to obtain a general business license 17 but must not deviate lower than the level required by the model 18 ordinance. 19 (3) (a) A city may require a person that is under the uniform 20 minimum licensing threshold as provided in subsection (2) of this 21 section to obtain a city registration with no fee due to the city. 22 (b) A city that requires a city registration as provided in (a) 23 of this subsection must partner with the department to have such 24 registration issued through the business licensing service in 25 accordance with chapter 19 . 02 RCW. This subsection (3) (b) does not 26 apply to a city that is excluded from the requirement to partner with 27 the department for the issuance and renewal of general business 28 licenses as provided in section 2 of this act. 29 NEW SECTION. Sec. 9 . Cities that impose a general business 30 license must adopt the mandatory provisions of the model ordinance as 31 provided in section 8 of this act by January 1, 2019 . A city that has 32 not complied with the requirements of this section by January 1, 33 2019, may not enforce its general business licensing requirements on 34 any person until the date that the mandatory provisions of the model 35 ordinance take effect within the city. 36 NEW SECTION. Sec. 10 . Cities must coordinate with the 37 association of Washington cities to submit a report to the governor; 38 legislative fiscal committees; house local government committee; and p. 7 EHB 2005 .SL 29 1 the senate agriculture, water, trade and economic development 2 committee by January 1, 2019 . The report must : 3 (1) Provide information about the model ordinance adopted by the 4 cities as required in section 8 of this act; 5 (2) Identify cities that have and have not adopted the mandatory 6 provisions of the model ordinance; and 7 (3) Incorporate comments from statewide business organizations 8 concerning the process and substance of the model ordinance. 9 Statewide business organizations must be allowed thirty days to 10 submit comments for inclusion in the report . 11 NEW SECTION. Sec. 11 . (1) The legislature directs cities, 12 towns, and identified business organizations to partner in 13 recommending changes to simplify the two factor apportionment formula 14 provided in RCW 35 . 102 . 130 . 15 (2) (a) The local business and occupation tax apportionment task 16 force is established. The task force must consist of the following 17 seven representatives : 18 (i) Three voting representatives selected by the association of 19 Washington cities that are tax managers representing municipalities 20 that impose a local business and occupation tax, including at least 21 one jurisdiction that has performed an audit where apportionment 22 errors were discovered. 23 (ii) Three voting representatives selected by the association of 24 Washington business, including at least one tax practitioner or legal 25 counsel with experience representing business clients during 26 municipal audits that involved apportionment errors or disputes . 27 (iii) One nonvoting representative from the department. 28 (b) The task force may seek input or collaborate with other 29 parties, as it deems necessary. The department must serve as the task 30 force chair and must staff the task force. 31 (c) Beginning in the first month following the effective date of 32 this section, the task force must meet no less frequently than once 33 per month until it reports to the legislature as provided under 34 subsection (3) of this section. 35 (3) By October 31, 2018 , the task force established in subsection 36 (2) of this section must prepare a report to the legislature to 37 recommend changes to RCW 35 . 102 . 130 and related sections, as needed, 38 to develop a method for assigning gross receipts to a local 39 jurisdiction using a market-based model . The task force must focus on P. 8 EHB 2005 .SL 30 1 methods that rely on information typically available in commercial 2 transaction receipts and captured by common business recordkeeping 3 systems . 4 (4) The task force terminates January 1, 2019, unless legislation 5 is enacted to extend such termination date. 6 NEW SECTION. Sec. 12 . Sections 1 through 10 of this act 7 constitute a new chapter in Title 35 RCW. Passed by the House April 17, 2017 . Passed by the Senate April 12 , 2017 . Approved by the Governor May 5, 2017 . Filed in Office of Secretary of State May 5, 2017 . -- END --- P. 9 EHB 2005 .SL 31 Exhibit B Model Business License Threshold Final Version June 2018 Model business license threshold options: (cities would adopt one of the options) 1. Threshold Exemption: To the extent set forth in this section,the following persons and businesses shall be exempt from the registration, license and/or license fee requirements as outlined in this chapter: (1) Any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the city is equal to or less than $2,000 (or higher threshold as determined by city) and who does not maintain a place of business within the city shall be exempt from the general business license requirements in this chapter.The exemption does not apply to regulatory license requirements or activities that require a specialized permit. 2. Threshold with Fee-free License/Registration-only Option: For purposes of the license by this chapter, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the city is equal to or less than$2,000 (or higher threshold as determined by city) and who does not maintain a place of business within the city, shall submit a business license registration to the Director or designee.The threshold does not apply to regulatory license requirements or activities that require a specialized permit. [City would list this fee-free license in its business license rates section as$0 or no fee.] 1 32 Engaging in business model definition: "Engaging in business" (1)The term "engaging in business" means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. (2)This section sets forth examples of activities that constitute engaging in business in the City, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimus business activities in the City without having to pay a business license fee. The activities listed in this section are illustrative only and are not intended to narrow the definition of "engaging in business" in subsection (1). If an activity is not listed, whether it constitutes engaging in business in the City shall be determined by considering all the facts and circumstances and applicable law. (3) Without being all inclusive, any one of the following activities conducted within the City by a person, or its employee, agent, representative, independent contractor, broker or another acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license. (a) Owning, renting, leasing, maintaining,or having the right to use, or using,tangible personal property, intangible personal property, or real property permanently or temporarily located in the City. (b) Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the City. (c)Soliciting sales. (d) Making repairs or providing maintenance or service to real ortangible personal property, including warranty work and property maintenance. (e) Providing technical assistance or service, including quality control, product inspections, warranty work,or similar services on or in connection with tangible personal property sold by the person or on its behalf. (f) Installing, constructing, or supervising installation or construction of, real or tangible personal property. (g)Soliciting, negotiating, or approving franchise, license, or other similar agreements. (h) Collecting current or delinquent accounts. (1) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials. (j) Providing disinfecting and pest control services, employment and labor pool services, home nursing care,janitorial services, appraising, landscape architectural services,security system services, surveying, and real estate services including the listing of homes and managing real property. 2 33 (k) Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators,teachers,veterinarians. (1) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. (m)Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the City, acting on its behalf, or for customers or potential customers. (n) Investigating, resolving, or otherwise assisting in resolving customer complaints. (o) In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place. (p) Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf. (4) If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person's behalf, engages in no other activities in or with the City but the following, it need not register and obtain a business license. (a) Meeting with suppliers of goods and services as a customer. (b) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions. (c)Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf.This provision does not apply to any board of director member or attendee engaging in business such as a member of a board of directors who attends a board meeting. (d) Renting tangible or intangible property as a customer when the property is not used in the City. (e) Attending, but not participating in a "trade show" or"multiple vendor events". Persons participating at a trade show shall review the City's trade show or multiple vendor event ordinances. (f) Conducting advertising through the mail. (g)Soliciting sales by phone from a location outside the City. (5) A seller located outside the City merely delivering goods into the City by means of common carrier is not required to register and obtain a business license, provided that it engages in no other business activities in the City. Such activities do not include those in subsection (4). 3 34 The City expressly intends that engaging in business include any activity sufficient to establish nexus for purposes of applying the license fee under the law and the constitutions of the United States and the State of Washington. Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus generating contact or subsequent contacts. 4 35 CITY OF Federal Way This page was intentionally left blank. 36 COUNCIL MEETING DATE: November 6,2018 ITEM#: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: GRANT ACCEPTANCE-WASHINGTON STATE ARCHIVES TECHNOLOGY TOOLS GRANT AWARD POLICY QUESTION: Should City Council authorize the City Clerk to proceed with the acceptance of the Washington State Archives Technology Tools Grant in the amount of$26,455 to be applied to the purchase of public records software? COMMITTEE: FEDRAC MEETING DATE: 10/23/2018 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Stephanie Courtney, CMC_ DEPT: City Clerk's Office Attachments: Staff Report Copy of Grant Award Letter Grant Agreement between State of Washington and City of Federal Way Options Considered: 1. Authorize City Clerk to proceed with acceptance of the Washington State Archives Technology Tools Grant in the amount of$26,455 for the purchase and implementation of public records software. 2. Do not authorize the City Clerk to accept the grant money awarded by the Washington State Archives. MAYOR'S RECOMMENDATION: The Mayor recommends forwarding Option 1 to the November 6, 2018 Council Consent Agenda for approval. MAYOR APPROVAL: 4 �IRECTOR APPROVAL: Vowel om sntcc ca incl nlia4pafr 111itta Qat InitisIll7xte COMMITTEE RECOMMENDATION:I move to forward the proposed Agreement to the November 6, 2018 consent agenda for approval. Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: "I move to authorize the City Clerk to proceed with the acceptance of the Washington State Archives Technology Tools Grant in the amount of $26,455 for the purchase and implementation ofpublic records software" (BELOW TO BE COMPLETED BY CITY CLERK'S OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL ❑ DENIED First reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING(ordinances only) ORDINANCE# REVISED— 12/2017 RESOLUTION# 37 CITY OF FEDERAL WAY MEMORANDUM DATE: October 15, 2018 TO: City Council Members VIA: Jim Ferrell, Mayor FROM: Stephanie Courtney, CMC; City Clerk SUBJECT: Washington State Archive Technology Tools Grant Acceptance Financial Impacts:. The amount of the grant award from the Secretary of State — Local Records Grant for Technology Tools is $26,455.00 and will be paid directly to the vendor by the state within 30-days of being invoiced. The grant does not require matching funds; therefore the cost to the City to receive the funds is $0.00. Background Information: On February 6, 2018 the City Council authorized staff to apply for the Washington State Archives Local Records Grant for implementing public records software with the understanding the ongoing cost of the software would be funded. The City was notified on October 1,2018 of the grant award in the Technology Tools category for the amount request of$26,455. This is a non-matching grant award. At this time, staff is seeking authorization to accept the grant award from the Secretary of State and move forward with purchasing and implementing public records software. 38 Rev.7/18 'Fj . Secretary of State Legislative Building PO Box 40220 ?J _ Olympia,WA 98504-0220 Tel:360.902.4151 sos.wa.gov October 1, 2018 City of Federal Way Thomas Fichtner 33325 81h Ave S Federal Way, WA 98003 Dear Thomas, Congratulations on your selection as one of the award recipients of the 2018-2019 Washington State Archives Local Records Grant Program! A total 170 applications were received requesting over $2,800,000. Due to the volume of quality requests, we are not able to fully fund all of the worthy projects that were submitted during this grant cycle. After reviewing all 170 applications,the Archives Oversight Committee has recommended that your grant proposal receive up to$26,455 for your Technology Tools Grant. I encourage you to continue working with your regional branch archivist or records consultants to answer any questions you may have regarding your project.To find your local archivist, please visit www.sos.wa.gov/archives. To accept your award, please send a letter of acceptance to Mark Vessey at the Washington State Archives, PO Box 40238, Olympia, WA, 98504-0238. Once your acceptance letter is received,you will be sent a Grant Agreement requiring your signature.This Grant Agreement is necessary for your agency to receive the grant funds. I am very pleased to make this award announcement to your agency, and I look forward to the successful completion of your very worthwhile project. Sincerely, KIM WYMAN STEVE EXCELL Secretary of State State Archivist 39 OSOS NO G-6247 GRANT AGREEMENT BETWEEN THE STATE OF WASHINGTON, OFFICE OF THE SECRETARY OF STATE, ARCHIVES AND RECORDS MANAGEMENT DIVISION, AND THE CITY OF FEDERAL WAY This Grant Agreement is entered into between the state of Washington, Office of the Secretary of State, Division of Archives and Records Management, hereinafter referred to as the"OSOS", and City of Federal Way; hereinafter referred to as the"Grantee." RECITALS WHEREAS, a local government grants program was authorized and funded by Chapter 303, State of Washington Laws of 2017, and WHEREAS, the purpose of this program is to help local governments' use technology to improve their records retention, management and disclosure of public records, as authorized under RCW 40.14.026, through the Archives and Records Management Division's Local Records Grant Program. WHEREAS, said grants program was established to provide funds to local entities to conduct this program, and WHEREAS, by virtue of a competitive process, this grant is awarded to named Grantee herein, and NOW,THEREFORE, in consideration of the terms and conditions contained herein, or attached and incorporated and made a part hereof, OSOS and Grantee mutually agree as follows: STATEMENT OF WORK The Grantee will provide services and staff, and otherwise do all things necessary for or incidental to the performance of work. The Grantee will perform the work as described and included as set forth in the Award Determination form, attached as Exhibit A. The Washington State Archives Grant Program requires both the narrative and financial components of program progress reports be completed during the project period. Documentation of expenditures is required. The Grantee shall submit reports to: Mark Vessey, Coordinator Local Records Grant Program Washington State Archives 1129 Washington St SE Olympia, WA 90504-0238 The final report, due on or before May 31, 2019, must provide a complete summary of the project and of all grant activities as described in the application and Exhibit A. The report MUST include a separate, itemized list of costs incurred and copies of receipts, and invoices, etc.,to substantiate all figures. PERIOD OF PERFORMANCE Subject to its other provisions,the period of performance of this Agreement shall commence on date of execution, and be completed no later than May 31, 2019, unless terminated sooner as provided herein. Page 1 of 3 40 OSOS NO. G-6247 PAYMENT No funds will be disbursed to the Grantee. All grant funds will be held by OSOS. In consideration for the work conducted as described in Exhibit A, Grantee shall submit invoices for completed work to the OSOS Project Manager for processing by OSOS. This grant is not to exceed amount of$26455 as prescribed and incorporated by reference herein. Payment for approved and completed work will be made by warrant or account transfer by OSOS within 30 calendar days of a satisfactorily completed invoice. Satisfactorily completed is defined as having all the information required for processing by OSOS Financial Services. In addition to a Federal Tax ID number,the Grantee must provide OSOS a Statewide Vendor Number(SWV#). Payment cannot be made without these numbers on file. The Contract number G-6247 and Statewide Vendor number must be referenced on each reimbursement claim in order for the claim to be processed. Costs incurred prior to the effective date of the Grant Agreement shall be disallowed under the Grant. Should the Grantee incur costs prior to the effective date of the Grant Agreement, it does so at its own risk. WAC 434-670-020. RECORDS MAINTENANCE AND MONITORING PROJECTS FOR PROGRAM AND FISCAL COMPLIANCE Specific accounting requirements for the Local Records Grant Program include but are not limited to: • All changes to the approved project(project scope, budget, personnel), must be requested in writing to, and approved by,the State Archivist. • Imaging completed as a result of this grant must meet the Washington State Standards for Production and Use of Microfilm. • Grant work must be monitored in progress. OSOS staff may visit the work site for review at any time during the project. • The Grantee is responsible to adhere to their agencies purchasing policies and requirements. GRANT MANAGEMENT The Project Manager for each of the parties identified below shall be the contact person for communications regarding the performance of this Grant. Invoices shall be sent to the OSOS Project Manager. Should questions arise during processing of invoices send inquiries to n�a goy. Thomas Fichtner City of Federal Way 33325 8th Ave S Federal Way,WA 98003 Phone: 253-835-2547 E-mail address: Thomas.Fichtner@cityoffederalway.com Mark Vessey Office of the Secretary of State Washington State Archives and Records Management 1129 Washington St. SE Post Office Box 40238 Olympia,Washington 98504-0238 Phone: 360.586-7810 E-mail address: mark.vessey@sos.wa.gov INDEPENDENT CAPACITY AND INDEMNIFICATION The employees or agents of each party who are engaged in the performance of this Grant Agreement shall continue to be employees or agents of that party and shall not be considered for any purpose to be employees Page 2of3 41 OSOS NO. G-6247 or agents of the other party. Each party to this Grant Agreement shall be responsible for its own acts and/or omissions and those of its officers, employees and agents. TERMINATION Either party may terminate this Grant Agreement upon 30 days' prior written notification to the other party. If this Grant Agreement is so terminated,the parties shall be liable for performance rendered or costs incurred in accordance with the terms of this Grant Agreement prior to the effective date of termination. TERMINATION FOR CAUSE If for any cause, either party does not fulfill in a timely and proper manner its obligations under this Grant Agreement, or if either party violates any of these terms and conditions,the aggrieved party will give the other party written notice of such failure or violation. The responsible party will be given the opportunity to correct the violation or failure within 15 working days. If failure or violation is not corrected, this Grant Agreement may be terminated immediately by written notice of the aggrieved party to the other. The rights and remedies of the OSOS provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law or under this Grant Agreement. Except as otherwise provided in this Grant Agreement,when a dispute arises between the parties and it cannot be resolved by direct negotiation, either party may request a dispute hearing with the Secretary of State. Nothing in this Grant Agreement shall be construed to limit the parties'choice of a mutually acceptable Alternate Dispute Resolution (ADR)method in addition to the dispute resolution procedure outlined above. GOVERNANCE In the event of any inconsistency in the terms of this Grant Agreement, or between its terms and any applicable statute or rule,the inconsistency shall be resolved by giving precedence in the following order: A. Applicable state and federal statutes and rules; and B. This Grant Agreement and any and all attached exhibits GOVERNING LAW This Grant Agreement shall be construed and interpreted in accordance with the laws of the state of Washington, and the venue of any action brought hereunder shall be in the Superior Court for Thurston County IN WITNESS WHEREOF,the parties have executed this Grant Agreement. CITY OF FEDERAL WAY OFFICE OF THE SECRETARY OF STATE Authorized Signatory Date Sheri Nelson Date Print Name- _ Deputy Secretary of State Title: APPROVED AS TO FORM Attorney General's Office Page 3 of 3 42 GRANT#2018PS43 OSOS Contract No. G-6247 EXHIBIT A AWARD DETERMINATION CITY OF FEDERAL WAY The following table illustrates the grant budget as proposed by your agency with the item that was funded and awarded with conditions. Budget Amount Amount Stipulations/Conditions Item Requested Funded Software $26,455 $26,455 GovQA Public Records Management System. Not to exceed amount funded. TOTAL $26,455 Not to include annual subscription/maintenance fee. 43 CITY OF Federal Way This page was intentionally left blank. 44 COUNCIL MEETING DATE: November 6,2018 ITEM#: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT:PURCHASE OF PUBLIC RECORDS SOFTWARE-GovQA WITH GRANT AWARD POLICY QUESTION: Should Council approve the purchase of GovQA with the State Achieve Technology Tools Grant award in the amount not to exceed$26,455 from SHI International Corp.? COMMITTEE: FEDRAC MEETING DATE: 10/23/2018 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Thomas Fichtner, IT Manager DEPT: Information Technology — _ ............ . ................. ... . ...... Attachments: Staff Report,Grant Agreement between State of Washington and City of Federal Way, GovQA Statement of Work, SHI International Quote. Options Considered: Approve staff to purchase GovQA in accordance with the State of Washington Local Records Grant award not to exceed the amount of$26,455. 2. Do not approve the purchase of GovQA with the grant money awarded by the Washington State Archives and provide staff with further direction. MAYOR'S RECOMMENDATION: The Mayor recommends forwarding Option 1 to the November 6, 2018 Council Consent Agenda for approval. r/ MAYOR APPROVAL: }D'RECTOR APPROVAL: az z tcc {onnr+l ��y[ Init�s}lDatc Initi.L,Datc Initial/Date aye COMMITTEE RECOMMENDATION:I move to forward the proposed GovQA purchase to the November 6, 2018 consent agenda for approval. Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: "I move to authorize staff to purchase GovQA in accordance with Washington State Achieves Technology Tool Grant Award from SHI International Corp. not to exceed$26,455." (BELOW TO BE COMPLETED BY CITY CLERK'S OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL# ❑ DENIED First reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING(ordinances only) ORDINANCE# REVISED—12/2017 RESOLUTION# 45 CITY OF FEDERAL WAY MEMORANDUM DATE: October 16, 2018 TO: City Council Members VIA: Jim Ferrell, Mayor FROM: Thomas Fichtner, IT Manager SUBJECT: Staff Report for GovQA Public Records Software (State Grant Award) Financial Impacts: The amount of the grant award from the Secretary of State — Local Records Grant for Technology Tools is $26,455.00 and will be paid directly to the vendor (SHI International Corp) by the state within 30-days of being invoiced. Ongoing costs for GovQA is $23,600 and is currently not in the 2019-2020 proposed budget as the winner of this grant were not announced until after the budget documents were due. After discussing with Finance Director Ade Ariwoola, the City will need to start paying the annual costs in 2020, which the $2.1 million savings from SCORE will be earmarked for this expense. Back round Information: The City of Federal Way applied for a grant from the State of Washington Secretary of State for a Local Records Grant for Technology Tools. The City won in the 2°d round of entries and received a total grant amount of$26,455.00. As mentioned in previous agenda bills related to this software,the need for a public records software is critical. The city has investigated different software solutions to help ease the burden on staff of tracking and responding to requests. GovQA has been identified as an excellent solution, used by several local cities in Washington State. In fact, several agencies were successful in receiving grant money for GovQA in the previous Washington State Archives grant cycle. This program will not only streamline the process for citizens seeking public records, but take steps to automate and facilitate the requestor locating the exact records they are seeking which may be available on the city's website. This tool identifies key terms in the request and will direct the individual to locations within the website which may offer the documents they are seeking. This process alone will cut down on the amount of requests the city receives for common documents (agendas, minutes, agreements) as well as other documents previously disclosed through records requests by anyone else. For delivery of records, this system will allow the City to no longer rely upon the unsecured FTP site for transmission of documents. GovQA provides a user friendly secure portal for the transmission, and downloading of the requested documents, and allows staff a tracking mechanism to ensure the request has been viewed. GovQA will also track all necessary data points necessary to efficiently produce the answers required by the State of Washington ESHB #1594 (JLARC)reporting requirements. Not only for the benefits of reducing the amount of workload for all staff in City Hall and Police that respond to public records requests, but specifically in reducing the risk to the City due to a failure to meet the requirements of the public records act. This is being purchased off of the State Contract: NASPO ValuePoint, Contract#: ADSPO16-130651 46 Pricing Proposal Quotation#: 16125648 Created On: 10/17/2018 Valid Until: 10/31/2018 City of Federal Way Inside Account Manager Thomas Fichtner Nicole Podraza WA 290 Davidson Ave United States Somerset, NJ 08873 Phone:253-835-2547 Phone: 732-652-6427 Fax: Fax: Email: Thomas.Fichtner@cityoffederalway.com Email: Nicole—Podraza@shi.com All Prices are in US Dollar(USD) Product Qty Your Price Total 1 Collect&Control Platform Subscription Service with FOIA Module(2 Request Types: 1 $11,502.59 $11,502.59 City,Police Department) WebQA, Inc.-Part#:201801 Contract Name: NASPO ValuePoint-Software VAR Contract#:ADSP016-130651 Subcontract#: 06016 Coverage Term: 1/1/2019—12/31/2019 2 Redaction License(Qty:6) 1 $2,176.17 $2,176.17 WebQA, Inc.-Part#: 201808 Contract Name: NASPO ValuePoint-Software VAR Contract#:ADSP016-130651 Subcontract#: 06016 Coverage Term: 1/1/2019—12/31/2019 3 FOIA Trending Topics 1 $0.00 $0.00 WebQA, Inc.-Part#: 201818 Contract Name: NASPO ValuePoint-Software VAR Contract#:ADSPO16-130651 Subcontract#: 06016 Coverage Term: 1/1/2019—12/31/2019 4 Storage(500 GB) 1 $0.00 $0.00 WebQA, Inc.-Part#: 201812 Contract Name: NASPO ValuePoint-Software VAR Contract#:ADSP016-130651 Subcontract#: 06016 Coverage Term: 1/1/2019—12/31/2019 5 Monthly Document Retrieval(500 GB) 1 $0.00 $0.00 WebQA, Inc.-Part#:201844 Contract Name: NASPO ValuePoint-Software VAR Contract#:ADSP016-130651 Subcontract#: 06016 Coverage Term: 1/1/2019—12/31/2019 47 6 Fortress Secure Deolovment/Hostino 1 $3.730.57 $3.730.57 Contract#:ADSPO16-130651 Subcontract#: 06016 Coverage Term: 1/1/2019—12/31/2019 7 Invoicing Module Subscription Service 1 $1,554.40 $1,554.40 WebQA, Inc.-Part#:201805 Contract Name: NASPO ValuePoint-Software VAR Contract#:ADSPO16-130651 Subcontract#: 06016 Coverage Term: 1/1/2019—12/31/2019 8 Online Payment Module Annual Service using Customer's current vendor 1 $2,487.05 $2,487.05 WebQA, Inc.-Part#: 201811 Contract Name: NASPO ValuePoint-Software VAR Contract#:ADSPO16-130651 Subcontract#: 06016 Coverage Term: 1/1/2019—12/31/2019 9 Advanced Document Search Subscription Service 1 $0.00 $0.00 WebQA, Inc.-Part#: 201807 Contract Name: NASPO ValuePoint-Software VAR Contract#:ADSPO16-130651 Subcontract#: 06016 Coverage Term: 1/1/2019—12/31/2019 10 FOIA Request Management System Implementation 1 $2,590.67 $2,590.67 WebQA, Inc.-Part#: 201825 Contract Name: NASPO ValuePoint-Software VAR Contract#:ADSPO16-130651 Subcontract#: 06016 11 Online Training—Administrator 1 $0.00 $0.00 WebQA, Inc.-Part#: 201827 Contract Name: NASPO ValuePoint-Software VAR Contract#:ADSPO16-130651 Subcontract#: 06016 12 Online Training—Users(2 sessions) 1 $0.00 $0.00 WebQA, Inc.-Part#: 201828 Contract Name: NASPO ValuePoint-Software VAR Contract#:ADSPO16-130651 Subcontract#: 06016 13 FOIA Trending Topics Implementation 1 $0.00 $0.00 WebQA, Inc.-Part#:201848 Contract Name: NASPO ValuePoint-Software VAR Contract#:ADSPO16-130651 Subcontract#: 06016 Total $24,041.45 Additional Comments Thank you for choosing SHI International Corp!The pricing offered on this quote proposal is valid through the expiration date listed above.To ensure the best level of service,please provide End UlName, Phone Number, Email Address and applicable Contract Number when submitting a Purchase Order. For any additional information including Hardware, Software and Services Contracts, please contact an SHI Inside Sales Representative at(888)744-4084. TAX ID#22-3009648;DUNS#61-1429481;CCR#61-243957G;CAGE 1 HTFO The Products offered under this proposal are resold in accordance with the SHI Online Customer Resale Terms and Conditinns unless a separate resale agreement exists between SHI and the Customer. 49 CITY OF Federal Way This page was intentionally left blank. 50 COUNCIL MEETING DATE: November 6,2018 ITEM#: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: PAEC SIGNAGE CONCEPTS POLICY QUESTION: Should the Council authorize staff to solicit proposals for the PAEC signage? COMMITTEE: FEDRAC MEETING DATE: Oct. 23,2018 CATEGORY: Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution Other STAFF REPORT BY: EJ Walsh/Steve Ikerd DEPT: Public Works/Parks Background: At the September 25th FEDRAC meeting Committee approved acceptance of$100,000 grant funds for signage and asked for an update. Attachments: Building and Monument sign DRAFT concepts. Options: Option 1. Accept the draft sign concepts and authorize staff to solicit proposals to be brought back to Council for final approval. Option 2. Do not accept sign concepts as presented and provide staff with direction. MAYOR'S RECOMMEN TION: Option 1 � �. MAYOR APPROVAL: O dDIRECTOR APPROVAL: �3... CU mEtEeCOLFIBIl ! Initial/Date hutialfDa Initial/Date Q COMMITTEE RECOMMENDATION: "I move to forward the authorization to solicit proposals based on the presented sign concepts to the November 6, 2018 consent agenda for approval" Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: "I move to accept the presented sign concepts and authorize staff to solicit proposals to be brought back to Council for final approval" (BELOW TO BE COMPLETED BY CITY CLERK'S OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL# ❑ DENIED First reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING(ordinances only) ORDINANCE# REVISED-12/2017 RESOLUTION# 51 . � - - - � m � ' ■ _ a , . p ! JN ` \ \ � !� �| � L '� # I � ¥*. • . 2 o _ \ ■ « \ f � � _ q ) i ti. 'd S yy.1 S` y � { c r s . IK Sam f� } IT ' I f � 1 � I r = f7, r-r . ,7 i r I - I If � �I .� I 4 F ] �•fYi' fr 7 f rrI 1 Ilr ,� ■ / 1 t rAr ' �.��.J '"'-r-�-� I•' �'1� ILII Mit �5 r �I 4 _ 1 1 1 y � y A' rf+ 1 i � ti. _ -- l � ���A � .y tixf �- � � � � 1 � , f r �Y r � � ( � w � 4 1 • yy _ 1 � �i i1 � � 1 w CC -; d R - i I, � � � ,. �- t r . �,, t; ,� �i � R' 4.-4 � 1 { ' �•�,1 .� ' �� k �'r i ;4�r ''r � 1 � � 4 }M � T ,p, � �4r � 1+ � - ��; �� CITY OF Federal Way This page was intentionally left blank. 58 COUNCIL MEETING DATE: November 6,2018 ITEM#: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT:RESOLUTION: 20180 �C— 6CHCOU 6 )*"C-N 7YV EN--r POLICY QUESTION: Should the Community Development fees in the 2018 Fee Schedule be adjusted? COMMITTEE: FEDRAC MEETING DATE: October 23, 2018 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Brian Davis,DirectorDEPT: Community Development Attachments: Staff Report Resolution Options Considered: 1)Approve the Mayor's Recommendation; 2)Approve the Mayor's Recommendation as further amended by the FEDRAC; 3)Do not adopt the Mayor's Recommendation ... ................. MAYOR'S RECOMNlEsND, 'PION: I move to forward Otion 1 to the City Council for approval. " MAYOR APPROVAL: C7 O V, D�¢I CTOR APPROVAL: ,t &, ��' IT anIn Ice m,il Su{ Ini[ialluale Initinili)ate Initial/Date COMMITTEE RECOMMENDATION: I move to forward the proposed resolution to the November 6, 2018, consent agenda for approval. Dini Duclos, Chair Lydia Assefa-Dawson, Member Hoang Tran, Member PROPOSED COUNCIL MOTION: "I move approval of the proposed resolution." (BELOW TO BE COMPLETED BY CITY CLERK'S OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL# ❑ DENIED First reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING(ordinances only) ORDINANCE# REVISED—12/2017 RESOLUTION# 59 CITY OF FEDERAL WAY MEMORANDUM DATE: October 19, 2018 TO: Finance,Economic Development and Regional Affairs Committee FROM: Brian Davis, Director of Community Development SUBJECT: Community Development Fees Adjustment The 2019/20 budget proposes a five percent increase to Community Development fees. After performing further analysis using actual costs and comparisons with other jurisdictions, staff proposes, and the mayor supports, additional increases to reflect a more practical fee schedule for Community Development. The added revenue from the increased fees will improve workload balance and compensation to Community Development employees and increase service levels to customers. 60 RESOLUTION NO. A RESOLUTION of the City of Federal Way, Washington, amending the fee schedule for 2018 and repealing the fee schedule adopted in Resolution No. 17-730. WHEREAS, the City is authorized under RCW 35A.11.020, 35A.63.100(2), and 19.27.040 to require licenses for the conduct of business, require permits for the construction of structures and improvements, and to impose fees to recoup the costs of processing and/or providing services; and WHEREAS, the Federal Way Revised Code establishes the basis for the assessment and/or collection of such license, permit fees, and service charges; and WHEREAS, the City Council deemed it is advisable and necessary to provide gradual annual increases in Land Use, Mechanical, Plumbing, Public Works, Electrical, and Building permit fees and to establish the mid-year Consumer Price Index for All Clerical Workers (CPI- W) for the Seattle-Tacoma-Bremerton area as the basis for such adjustments in Resolutions 98- 281, 01-351, 02-377, 03-406, 04-435, 05-462, 06-490, 07-513, 08-537, 09-567, 10-585, 10-599, 11-612, 12-626, 13-654, 14-673; 15-699; 16-711; 17-717; and WHEREAS, the City Council has historically adjusted development services and permit fees under the Land Use, Mechanical Code, Plumbing Code, Public Works, Electrical Code, and International Building Codes in accordance to the percentage of inflation measured by the mid- year CPI-W for the Seattle-Tacoma-Bremerton area; and WHEREAS, the Transportation Impact Fees is indexed to provide for an automatic increase each year based on a three-year moving average of the Washington State Department of Transportation Construction Cost Index; and 61 WHEREAS, the City Council finds it necessary to revise building-related permit fees in order to ensure that fees reflect changes in the types of permits issued, more accurately recover costs associated with permit issuance, to remain consistent with surrounding jurisdictions, and to correct inconsistencies and errors; and WHEREAS, the City Council finds it necessary to revise the City fee schedule upon review of the fee table. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, RESOLVES AS FOLLOWS: Section 1. Fee Schedule. The City of Federal Way hereby adopts the 2018 Fee Schedule as attached hereto, identified as Exhibit A and hereby incorporated in full by this reference, for fees associated with the various licenses, permit processes, and other business activities of the City. Section 2. 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 3. Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of scrivener/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 4. Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed. 62 Section 5. Effective Date. The fee schedule adopted by this resolution shall be effective immediately. An act consistent with the authority and prior to the effective date of the resolution is hereby ratified and affirmed. RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON this 6th day of November, 2018. CITY OF FEDERAL WAY: JIM FERRELL, MAYOR ATTEST: STEPHANIE COURTNEY, CMC, CITY CLERK APPROVED AS TO FORM: J. RYAN CALL, CITY ATTORNEY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: RESOLUTION NO.: 63 EXHIBIT A 2018 FEE SCHEDULE TYPE OF FEE 2018 Fee SECTION ONE. ANIMAL LICENSE AND OTHER FEES.(PD) Unaltered Cat license per year $60 Unaltered Dog license per year $60 Juvenile Cat/Dog Under 6 months of age(6 month expiration) $10 Altered Cat: Altered Cat license for one year $20 Altered Cat license for two year $35 Altered Cat license for three year $50 Altered Dog: Altered Dog license for one year $25 Altered Dog license for two year $45 Altered Dog license for three year $65 Permanent License(owners 65 years of age and older)-if Altered No Fee Permanent License(disabled)-it Altered No Fee Other Fees: Replacement Tag $2 Impound Redemption: First Impound $25 Second Impound(mandatory spay/neuter) $50 Third Impound $75 24 Hour Retention $10/day Additional License Fee(for unlicensed dogs/cats impounded) $50 Hobby Kennel/Hobby Cattery(Plus each individual animal must be licensed) $50 Penalties: Less than 30 days renewal fee $10 30-60 days late renewal fee $20 Over 60 days late renewal fee $25 No refund due to pet moving out of the area,or lost pet.The Manager may authorize a refund collected in error. SECTION TWO. BUSINESS REGISTRATION.(FI) General Business Registration: New Business and renewals,all categories unless otherwise identified herein New Business Registrations and Renewals: General Commercial Businesses to include,2nd Hand Dealer,Dance Hall,Massage Parlor,Gambling(+$50 per device up to 6),Restaurants 0-10 Employees $80 11-25 Employees $125 26-50 Employees $250 51-100 Employees $1,500 101-500 Employees $4,500 501-1000 Employees $9,500 Outside Contractor $80 Home Occupation $50 Temporary Business Registraton $50 Right of Way $43 Duplicate Registration(replacement) $15 Public Bathhouse: 1, Public Bathhouse Business See General Business Registration 2. Bathhouse Attendant per attendant in addition to Business Registration fee $80 3. Bathhouse Manager per manager in addition to Business Registration fee $80 Public Bath House Proration: The entire annual license fee shall be paid for the applicable calendar year regardless of when the application for license is made and shall not be prorated for any part of the year except that if the original application for license is made renewals shall be required to be obtained and paid in full by January 31 of each respective year.subsequent to June 30 the license fee for the remainder of that year shall be one-half of the annual license fee.Annual Renewal - Pawnbroker: Pawnbroker License $500 Late Penalty: Failure to pay any registration fee due within 30 days after the day on which it is due and payable shall result in a penalty of five Per FWCC 12.05,060(7) percent or$5.00,whichever is higher,on the amount of the registration fee,and an additional penalty of five percent or$5.00, whichever is higher,for each succeeding month of delinquency or part thereof,but shall not exceed a total penalty of$25,00 or 64 TYPE OF FEE 2018 Fee SECTION THREE. CONSTRUCTION PERMITS(CD) PERMIT FEES A.BUILDING The Building,Mechanical,Plumbing,and Sign Permit fees are calculated by applying Valuation Table A to the value of the work proposed.The valuation should include the typical construction methods for foundation work,structural and nonstructural building components,and interior finish material.The value of the work shall be determined by using Building Value Data as published and further updated by the International Code Council or by submission of a written project bid subject to approval by the Building Official. VALUATION TABLE A Total Project Valuation Base Incremental Factor $1.00-$1,000 00 $60.96 $65.22 N/A $1,000.01-$2,000.00 $60 95 $65.22 for first$1,000,plus $4.60$4.92 for each additional$100 00 or fraction thereof,to and including $2.000.00 $2,000.01-$25,000.00 $106.95$114.42 or first$2,000,plus $22`93$24.54 for each additional$1,000.00 or fraction thereor,to and including $25,000.00. $25,000 01-$50,000 00 $63434$678.84 for first$25,000,plus $16.34$17.48 for each additional$1,000.00 or fraction thereof,to and including $50000,00. $50,000 01-$100,000.00 $1,042.84$1,115.84 for first$50,000, $11.06$11.83 for each additional$1,000.00 or fraction thereof,to and including plus $100,000.00. _ $100,000.01-$500,000.00 $1,696.84$1,707.34 for first$100,000, $8.96$9.59 for each additional$1,000,00 or fraction thereof,to and including plus $500,000-00- $500,000 01-$1,000,000 00 $5,179.94$5,543.34 for first$500,000, $7-.-3#$7.89 for each additional$1,000-00 or fraction thereof,to and including Dlus $1.000.000-00- $1,000,000 01 and up $8�6484$9,488.34 for first$1,000,000, $`&.N$6.21 for each additional$1,000,00 or fraction thereof. plus Note:Additional fees will apply to a permit,as noted here: All development permits are charged an automation fee.See Section Three,I for details. All building permits are charged an SBCC surcharge,See Section Three,I for details Some building permits require plan review.See Section Three,G for details, Some building permits require plumbing fees.See Section Three,D for details. Some building permits require mechanical fees See Section Three,C for details. Some building permits require a digitizing fee.See Section Three,I for details. Some building permits require an impact fee See Section Thirteen for details. Some building permits require zoning review. See Section Seven,B for details. Some building permits require a South King Fire fee.See Section Five for details. B.DEMOLITION Permit Fee is based on total project demolition valuation, See Section Three,A,Valuation Table A to calculate fees, C.MECHANICAL General permit fees are based on total installation valuation, See Section Three,A,Valuation Table A to calculate fees. Permit and plan review fees for a New Single-Family Residence is a flat fee of $374L $397 D.PLUMBING General permit fees are based on total installation valuation. See Section Three,A,Valuation Table A to calculate fees Permit and plan review fees for a New Single-Family Residence is a flat fee of $374- $397 E.ELECTRICAL Permit fee is based on total installation valuation Use Valuation Table B to calculate electrical permit fees. VALUATION TABLE B Total Project Valuation Base Inerementat Factor $100-$1,00000 $70.09 N/A $1,000 01-$2,000 00 $70.09 for first$1,000,plus $5.29 for each additional$100 00 or fraction thereof,to and including$2,000 00 $2,000 01-$25,000 00 $122 99 for first$2,000,plus $26.37 for each additional$1,000 00 or fraction thereor,to and including $25.000.00. $25,000 01-$50,000 00 $729.50 for first$25,000,plus $18.79 for each additional$1,000 00 or fraction thereof,to and including $50.00000 $50,000 01-$100,000 00 $1,199.25 for first$50,000,plus $12.72 for each additional$1,000 00 or fraction thereof,to and including $100,000.00. $100,000 01-$500,000 00 $1,835.25 for first$100,000,plus $10.30 for each additional$1,000 00 or fraction thereof,to and including $500,000.00. $500,000 01-$1,000,000 00 $5955.25 for first$500,000,plus $8.48 for each additional$1,000 00 or fraction thereof,to and including $1,000,000.00. $1,000,000 01 and up $10,195.25 for first$1,000,000,plus 6.67 for each additional$1,000 00 or fraction thereof 65 TYPE OF FEE 2018 Fen SECTION THREE. CONSTRUCTION PERMITS(CD)(continued) F.SIGN (1) Permanent sign. Permit fee is based on total construction installation valuation.See Section Three,A,Valuation Table A to calculate fee The total permit fee'for electrical signs includes an electrical connection fee,as follows: First sign $64 $69 Each additional sign on same application $32 The total permit fee'includes a per sign planning surcharge,as follows: $0 First sign &4& $51 Each additional sign on same application L $19 Nota 1. Fee is based on actual hourly,personnel costs. $0 $0 (2) Temporary sign.Note:iempOrary dans are by separate permit. $0 Permit fee =i`: $46 G.PLAN REVIEW FEES The specified plan review fees are separate from and in addition to the permit fees and are collected at application submittal Building permit: 65%of the building permit fee Mechanical permit: 65%of the mechanical permit fee Plumbing permit: 65%of thin plumbing parmiI fee Sign permit: 65%of the sign permit fee Electrical permit: 65%of the electrical permit fee Commercial building permits ONLY-15%of permit fee goes to South Kira Fire&Rescue plan review Additional plan review required by changes/additions/revisions to plans,per hour or portion thereof' $69 Outside consultant plan review. [Any private or public professional services contract needed will be billed 100%,plus 10%billing and administrative charges.] Note 1. Fee is based on actual hourly personnel costs Note:Fire prevention system plan review fees are found in Section Five.Fire Code-Annual Permits fee section H.ADDITIONAL OR SPECIAL INSPECTIONS The following fees are separate from and in addition to the permit fees and are collected in advance of work performed. 1.Reinspection(second and subsequent reinspections)(Hourly Rate') SE $69 2.Inspections for which no tee is specifically Indicated(1-hour minimum)(Hourly Rate i) $9-7� $103 3,inspections outside of normal business hours(4-hour minimum)(Houdy Rate') $97 $103 4.Inspectlons performed by outside consultants.[Amy pnvate or public professional services contract needed will be billed ------ 100%,plus 10%billing and administrative charges.] Note:1. Fee is based on actual hourly personnel costs. 66 TYPE OF FEE 2018 Fee SECTION THREE. CONSTRUCTION PERMITS(CO)(Continued) 1.MISCELLANEOUS PERMIT-RELATED FEES Adult family home facility inspection(3 hour minimum,Hourly Rate ) $493 $207 Automation(applies to all land use&development permits);Fee is the greater of $32 or 3%of the permit fee. $20- $32 Digitizing for single-family plans submitted and permit issued $47 Digitizing for commercial and multi-family plans submitted and permits issued $140 Over-The-Counter(OTC)permit review $666s $70 Single-family solar panel/system permit fee $2665- $284 State Building Code Council(SBCC)surcharge for Residential Building Permits $450 $650 For each residential unit after the first unit on the same permit $2,00 $200 State Building Code Council(SBCC)surcharge for Commercial Building Permits $2500 For each residential unit after the first unit on the same permit. $2.00 Note:1 Fee is based on actual hourly personnel costs. J.REFUNDS Permit applications:The Building Official may authorize the refunding of not more than 80%of the permit plan review fees paid, provided the applicant presents a written request to withdraw the application prior to the commencement of staff review.The automation fees are non-refundable. [NOTE:The Building Official does not have purview over another department's or jurisdiction's fees.Please apply for other potential refunds separately,if applicable.] Issued permits:The Building Official may authorize the refunding of not more than 80%of other,non-plan review-related building permit fees paid,provided the applicant presents a written request to cancel the permit prior to the commencement of any construction work covered by the permit and/or prior to the completion of any inspections by City staff.The automation fees are non-refundable. [NOTE:The Building Official does not have purview over another department's orjurisdiction's fees Please apply for other potential refunds separately,if applicable.] K.PENALTIES Any person who shall commence any work for which a permit is required by this Code without first having obtained a permit may be required to pay double the permit fee fixed by this section for such work, Such double permit fee shall be in additional to any penalty for a violation of the provisions of this Code. SECTION FOUR. FALSE ALARMS.{EMS) False Alarm Fee Burglary 1st and 2nd false alarms in a registration year(July 1-June 30) Free 3rd false alarms in a registration year(July 1-June 30),each alarm $50 4th false alarms in a registration year(July 1-June 30),each alarm $100 5th false alarms in a registration year(July 1-June 30),each alarm $150 6th and successive false alarms in a registration year(July 1-June 30),each alarm $200 Robbery 1st and 2nd false alarms in a registration year(July 1-June 30) Free 3rd false alarms in a registration year(July 1-June 30),each alarm $75 4th false alarms in a registration year(July 1-June 30),each alarm $150 5th false alarms in a registration year(July 1-June 30),each alarm $225 6th and successive false alarms in a registration year(July 1-June 30),each alarm $300 Registration Fee $25 Late Registration Fee Penalty $50 Late False Alarm Payment Penalty $25 Appeal Hearing Cancellation Fee $10 67 TYPE OF FEE 2018 Fee SECTION FIVE, FIRE CODE-ANNUAL PERMITS AND REVIEW.(FIRE) 15%of Building Permit Fee Fire Department Review and Inspection of Building Permits with min$77.25 Fire Prevention System Permits Permit Fee(based on valuation) Per IBC Section 108.2 Plan Review Fee 65%of FP Permit Fee Outside Consultant plan review Actual cost Additional plan review required by changesladdi[ions/revisions to pian,per hour or portion thereof 557.781hr Note:City retains$20.COW total fee for processing SECTION SIX- FIREWORKS.(FIRE) Public Display Permit(together with$100.00 cash bond) $100 SECTION SEVEN. LAND USE.(CD) A. PRINCIPAL LAND USE AND SUBDIVISION-RELATED FEES: Administrative Determination/Code Interpretation $684 Boundary Llne Adjustnnent,Pus:_ 5d,-1 x6 $1,368 Fire Review @ 5% €6tl- $68 Public Works Review w:*- $763 Binding Site Plan,Plus: $1416 $3,420 Fire Review t^g 5% F&9- $171 Public Works Review $1:29+2- $1,350 Change of Use $342 Forest Practices Permit $684 Flood Plain Permit $684 Lot Line Elimination s_+''z $547 Plat,Preliminary,Plus: _ _ $4,212 $6,840 Per Acre Fee W. $90 _Fire Review 5% &240- $342 Public Works Review Base fee P.-fila $3,868 Plus per acre fee S78 $74 Plat,Final,Plus: TB& $4,514 Public Works Review $11545 $1,621 Plat,Short 2-4 lots,Plus: &i-441 $3,420 Per lot 58?- $88 Fire Review c@ 5% $69- $171 Public Works Review $4261 $1,339 Plat,Short 5-9 lots,Plus: @q�f5 $4,446 Per lot 582• $88 Fire Review @ 5% $222 Public Works R®vlew S.14'1 $1,339 Pre-Application Meeting $485 $519 Process I-Director's Approval for interpretations Fie sparge $684 Process I-Other minor site review, SID $1,710 68 TYPE OF FEE 2018 Fee SECTION SEVEN. LAND USE.(CD)[continued) Process 2-Site Plan Review [Base Land Use Fee],Plus: >w A7 $3,078 over 25,000 WI S3rl— $390 over 50.000 sgft 5639 $683 over 100,000 sgftA $978 Fire Review @ 5% S & $154 Public Works Review Base Fee,Plus; $4:388 $1,271 Over 25,000 sqR $ $300 Over 50,000 sgft 068- $600 Over 100,000 SO $64A- $899 Process 3-Project Approval[Base Land Use Fee],Plus: 51 263 $4,104 over 25,000 sQ11 sa", $390 over 50,000 sqft 9638 $683 over 100.000 sqR $942 $976 Fire Review @ 5% $6.8- $205 Public Works Review Base Fee,Plus: 6,48r $1,271 Over 25,000 sgfl 5290 $300 Over 50,000 sgft S560 $600 Over 104,004 pqn $4,10- $899 Process 3-Applications(for radio tower&antenna structures for use by amateur radio operators required by FWRC 19.110.60(3), Plus: k18= $192 Rim Review @ 5% $9 $10 Process 3-Administrative Variances $2,077 $4,104 Public Works Review 51-39 $149 Process 4-Hearing Examiner's Decision, [Base Land Use Fee],Plus: SZ443. $2,614 Fire Review @ 5% _ _ 14 $131 Public Works Review St,&Si $1,799 Process 4-Rearing Examiner Variance[Base Land Use Fee],Plus: $3,d.32- $3,672 Public Works Review F- $450 Process 5-Quasi-Judicial Rezones [Base Land Use Fee],Plus: From one RS designation to another RS designation $822 $6,840 Per Acre $45Fr $488 Maximum $2d;1s74 $21,4154 From one RM designation to another RM designation $1,269 Per Acre 3-1;4FA $1,563 Maximum $31 $33,984 _Process 5-ComprehU ensive Plan Amendments(Base Land se—Fee],Plus: 304: $3,420 Per Acre- ---------- -- -- --------- — -- 5s3s- $97 69 TYPE OF FEE 2018 Fee SECTION SEVEN. LAND USE.(CD)(continued) Process 6-Comprehensive Plan Amendments[Base Land Use Fee],Plus: W12- $2,941 Per Acre $94- $97 Public Notice Fee(for each required published notice) $153- $164 SE_PA City CeOW Planned Action, Plus: _ _ _ _ _ $Q $684 _Fire Review Fee @ 5% _ _ __ $a-2- $34 Public Works Review $499- $167 SEPA Environmental Checklist Only,Pius: s1:679 $2,052 Fire Rerriew Fee @ 5% S" $103 Public Works Review `x573 $614 SEPA Checklist as Part of Pro]ecl, Plus: $1.020 $2,052 _Fire Reiview Fee @ 5% $54� $103 Public Works Review &3b0 $375 Shoreline Permit,,(Base Land Use Fee],Plus: S4-,628 $3,078 over 515,000 value $ t $782 over 550,000 value &-4-- $2,344 over 5100,000 value &41049 $4,297 over$500.000 value $8.032- $8,594 over$1,000,000 value 1.1zou $12,889 Public Works Review &;,2E4 $1,349$1,349 Shoreline Conditional Use Permit,Plus: $6,840 Public Works Review 52-336 $2,500 Shoreline(Exemption Determination) S4 $342 Shoreline Variance,Plus: 'a I C9 $6,840 Public Works Review $1-7a�- $1,874 Temporary Use Permit $136 Tree Removal Request $136 Zoning Compliance Review--Change of Use $..57 $342 Zoning Verification $136 B. MISCELLANEOUS LAND USE FEES: Accessory Dwelling Units(1 hour minimum) S12 $479 Appeals &128- $1,094 -#1pp�Fe1�#rniairiral�Deepsierr $a-93 •Appeat�l-NWisetstifotaNer� SS;I[7- A........-.1..ICDA Y1e.,a� S12A .Automation fee(Applies to all Land Use and Development permits) $21- $32 In-Home Day Care Facilities: 12 or fewer attendees $64 $58 70 TYPE OF FEE 2018 Fee SECTION SEVEN. LAND USE. CD continued Miscellaneous Zoning/Subdivision Fees Extension requests and general zoning/subdivision review not otherwise covered by this schedule°(1-hour minimum) $194.0014 $109/hr Zoning inquiries and determinations $4G6_ $113 Historic Designation Review $&& $59 Notes: 1-Appeal Fee shall be reimbursed in the event the reviewing authority determines that the appellant has substantially prevailed 2.The fire district administrative review fee in an amount equal to 5%of the land use fee imposed is charged and collected by 3.Additional fees will be required to pay for any time spent on Land Use Applications by the Department of Public Works 4. Fee is based on estimated hourly staff costs. C. REFUNDS OF LAND USE FEES. The Filing Fees as set forth in the Fee Schedule for the City are established to defray the cost of posting and processing and the proceedings in connection with a land use application, The Director of Community Development may authorize the refunding of not more than 80%of the total application fees paid provided the applicant presents a written request to withdraw or cancel the application. The refund amount shall be determined at the Directors discretion and be based on the amount of staff resources utilized at the time of the request. D. MULTIPLE FEES When multiple land use fees are required for the same project,the highest fee shall be charged at full cost and each additional fee shall be charged at 25%of listed cost,Exceptions:1)If a land use permit is required in conjunction with a subdivision application(preliminary plat,short subdivision or binding site plan),full fees for both types of permit shall be charged.2)SEPA fees shall be charged at the full rate shown_ SECTION EIGHT. MISCELLANEOUS.(MAYOR) Miscellaneous Review,Inspection or other Activity(Land Use,Public Works&Building Permit Services): Any public works,land use or building permit-related review,inspection or other activity not covered by the fee schedule,if performed by a City employee,is based on actual hourly cost,plus benefits of 35%,plus overhead of 25%,plus a$15/hr computer usage fee.Any private or public professional services contract needed will be billed 100%,plus 10%billing and administrative charges. Maps,Plats,Miscellaneous Cost+10% Photocopies,Black and White Per Page Per RCW 42.56 as amended Photocopies,Color Per Page Per RCW 42.56 as amended Scanning Per Page Per RCW 42.56 as amended D Size Rolled Plan Copies,Per Sheet Per RCW 42.56 as amended E Size Rolled Plan Copies,Per Sheet Per RCW 42.56 as amended Audio Duplication,Per CD Per RCW 42.56 as amended Video Duplication,Per DVD Per RCW 42,56 as amended Notary Public Service,Per document $10 Clerk's Certification $10 Passport Application $25 Facsimile Usage(incoming/outgoing)1st Page $3 each additional page $1 Bound Printed Documents Actual Cost Non-sufficient Funds Fee $25 GIS Map and Data Requests:' 8 1/2 by 11-Paper-Color $4 8 1/2 by 11-Paper-Black&White $3 8 1/2 by 11-Mylar-Color $5 8 1/2 by 11-Mylar-Black&White $4 11 by 17-Paper-Color $5 11 by 17-Paper-Black&White $4 11 by 17-Mylar-Color $6 11 by 17-Mylar-Black&White $5 Up to 34 by 44-Paper-Color $10 Up to 34 by 44-Paper-Black&White $7 Up to 34 by 44-Mylar-Color $37 Up to 34 by 44-Mylar-Black&White $31 31/2 Floppy Disk or CD ROM(per disk/CD) $2 Maps that require extensive processing time or require additional ink and plotting supplies will be charged at a higher rate. Applicable sales tax will be added to the costs Staff Time to Complete Request,Per Hour $35 Computer Usage,Per Hour $15 Note:Staff time and computer usage will only be charged on requests for custom products 71