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Home My WebLink AboutREGULAR COUNCIL - 27 Oct 2014 - Agenda - PdfAGENDA RENTON CITY COUNCIL REGULAR MEETING October 27, 2014 Monday, 7 p.m. 1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2.ROLL CALL 3.PROCLAMATION a. DECA Month and Hazen DECA Entrepreneurship Month - November 2014 4.PUBLIC HEARING a. Six-month extension declared 9/15/2014 of the moratorium adopted 11/4/2013 on the submission, acceptance, processing or approval of applications or licenses by or for new business licenses or permits for new establishments involved in the sale, use, growing, manufacture, distribution or processing of medical marijuana. 5.APPEAL a. Planning & Development Committee Report re: Enclave @ Bridle Ridge INABILITY OF THE CITY COUNCIL TO TAKE TESTIMONY ON APPEALS DURING THE CITY COUNCIL MEETING State law requires that the City establish a process to handle appeals from application of environmental and developmental rules and regulations. The Renton City Council, feeling it was best for the elected representatives to handle the appeals rather than require citizens to go to court, has retained appellate jurisdiction to itself. The courts have held that the City Council, while sitting as an appellate body, is acting as a quasi-judicial body and must obey the rules of procedure of a court more than that of a political body. By City Code, and by State law, the City Council may not consider new evidence in this appeal. The parties to the appeal have had an opportunity to address their arguments to the Planning & Development Committee of the City Council at a meeting previously held. Because of the court requirements prohibiting the City Council from considering new evidence, and because all parties have had an opportunity to address their concerns to the Planning & Development Committee, the City Council may not consider oral or written testimony at the City Council meeting. The Council understands that this is frustrating to citizens and is outside the normal process of open discourse provided to citizenry during the audience comment portion of the City Council meeting. However, this burden of not allowing Council to be addressed concerning pending appeals is outweighed by the quick, inexpensive and local appeal process provided by the Renton City Council. 6.ADMINISTRATIVE REPORT Page 1 of 267 7.AUDIENCE COMMENT (Speakers must sign up prior to the Council meeting. Each speaker is allowed five minutes. The first comment period is limited to one-half hour. The second comment period later on in the agenda is unlimited in duration.) When you are recognized by the Presiding Officer, please walk to the podium and state your name and city of residence for the record, SPELLING YOUR LAST NAME. NOTICE to all participants: pursuant to state law, RCW 42.17A.555, campaigning for any ballot measure or candidate in City Hall and/or during any portion of the council meeting, including the audience comment portion of the meeting, is PROHIBITED. 8.CONSENT AGENDA The following items are distributed to Councilmembers in advance for study and review, and the recommended actions will be accepted in a single motion. Any item may be removed for further discussion if requested by a Councilmember. a. Approval of Council meeting minutes of 10/20/2014. Council concur. b. Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney for Claimants, vs. the City of Renton, et al, regarding false arrest and seeking damages from an incident that began on February 3, 2013. Refer to City Attorney and Insurance Services. c. Community Services Department recommends approval of a Job Order Contract Work Order with Forma Construction in the amount of $192,673.05 for Sunset Neighborhood Park fourplex demolitions. Council concur. 9.UNFINISHED BUSINESS Topics listed below were discussed in Council committees during the past week. Those topics marked with an asterisk (*) may include legislation. Committee reports on any topics may be held by the Chair if further review is necessary. a. Finance Committee: 200 Mill Building Lease with Amazing Grace Lutheran Church; Vouchers 10.RESOLUTIONS AND ORDINANCES Ordinances for first reading: a. Authorize 2015 Property Tax Levy (Approved via 10/20/2014 Committee of the Whole Committee Report) b. Establish 2015 Property Tax Levy (Approved via 10/20/2014 Committee of the Whole Committee Report) c. 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Committee Committee Report) d. 2015/2016 Solid Waste Rates (Approved via 10/20/2014 Utilities Committee Committee Report) e. Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Committee of the Whole Committee Report) f. Clarify Business License Fees (Approved via 10/20/2014 Committee of the Whole Committee Report) g. Modify Senior Citizen Age Threshold for Pet Licenses (Approved via 10/20/2014 Committee of the Whole Committee Report) h. Adopt 2015/2016 Biennial Budget (Approved via 10/20/2014 Committee of the Whole Committee Report) 11.NEW BUSINESS Page 2 of 267 (Includes Council Committee agenda topics; call 425-430-6512 for recorded information.) 12.AUDIENCE COMMENT 13.ADJOURNMENT COMMITTEE OF THE WHOLE AGENDA (Preceding Council Meeting) October 27, 2014 CANCELED • Hearing assistance devices for use in the Council Chambers are available upon request to the City Clerk • CITY COUNCIL MEETINGS ARE TELEVISED LIVE ON GOVERNMENT ACCESS CHANNEL 21 AND ARE RECABLECAST: Tues. & Thurs. at 11 AM & 9 PM, Wed. & Fri at 9 AM & 7 PM and Sat. & Sun. at 1 PM & 9 PM Page 3 of 267 3a. - DECA Month and Hazen DECA Entrepreneurship Month - November 2014Page 4 of 267 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Court Case: Speed vs. City of Renton, et al; CRT- 14-008 Meeting: REGULAR COUNCIL - 27 Oct 2014 Exhibits: Summons Submitting Data: Dept/Div/Board: City Clerk Staff Contact: Jason Seth, Acting City Clerk, ext. 6504 Recommended Action: Refer to City Attorney and Insurance Services Fiscal Impact: Expenditure Required: $ Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $ Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: Summons filed in Superior Court of Washington in and for the County of King by Amanda Speed, represented by Michael J. Kelly, Attorney for Claimants, vs. the City of Renton, et al. STAFF RECOMMENDATION: n/a 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 5 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 6 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 7 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 8 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 9 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 10 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 11 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 12 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 13 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 14 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 15 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 16 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 17 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 18 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 19 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 20 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 21 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 22 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 23 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 24 of 267 8b. - Court case filed by Amanda Speed, represented by Michael J. Kelly, Attorney Page 25 of 267 CITY OF RENTON COUNCIL AGENDA BILL Subject/Title: Sunset Park Fourplex Demolitions Meeting: REGULAR COUNCIL - 27 Oct 2014 Exhibits: Job Order Contracting Proposal Submitting Data: Dept/Div/Board: Community Services Staff Contact: Peter Renner, Facilities Director, Ext. 6605 Recommended Action: Council concur Fiscal Impact: Expenditure Required: $ $192,673.05 Transfer Amendment: $ Amount Budgeted: $ Revenue Generated: $ Total Project Budget: $ City Share Total Project: $ SUMMARY OF ACTION: The City will soon acquire property for the Sunset Neighborhood Park. The park site includes a surface water facility, which must be constructed in 2015 to meet State grant timing requirements. The project will begin in early 2015. The property has five multi-unit dwellings. One of the units is being used by Renton Housing Authority (RHA) as a maintenance building and is also the jobsite-office for the Highlands Library contractor. The other four housing units must be demolished promptly to make room for the water facility project and the park to follow. Forma Construction has previously been approved by the City as the Job Order Contractor and they have successfully completed a number of projects in the City per their contract, including the demolition of the former Big 5 Building. This project requires City Council approval due to the project costs. The pricing compares favorably with the cost for abatement and demolition of two similar multi-family units that were on the Highlands Library site across the street on Sunset Lane. STAFF RECOMMENDATION: Authorize the Mayor and City Clerk to sign the Job Order Contractor Proposal with Forma Construction in the amount of $192,673.05. 8c. - Community Services Department recommends approval of a Job Order Page 26 of 267 CONTENTS CITY OF RENTON JOB ORDER CONTRACTING proposal No date: contractor contact: phone: email: rev. No FORMA CONSTRUCTION COMPANY 1736 4TH AVE SOUTH SEATTLE WA 206.626.0256 8c. - Community Services Department recommends approval of a Job Order Page 27 of 267 Section 2: Work Order Proposal CAG-13-149 Work Title:30 Location: Requesting Agency: Date of Proposal: Completion Schedule:JOC Firm: CSI Bare Cost Total City Cost Index Contractor Coefficient Division Total Price 1 $83,598 1.042 1.040 90,593.48 2 $52,656 1.042 1.040 57,062.25 3 1.042 1.040 0.00 4 1.042 1.040 0.00 5 1.042 1.040 0.00 6 1.042 1.040 0.00 7 1.042 1.040 0.00 8 1.042 1.040 0.00 9 1.042 1.040 0.00 10 1.042 1.040 0.00 11 1.042 1.040 0.00 12 1.042 1.040 0.00 13 $26,116 1.042 1.040 28,301.39 14 1.042 1.040 0.00 15 1.042 1.040 0.00 16 1.042 1.040 0.00 175,957.12$ Item No Units Qty Unit Mat'l Price Labor Hours Unit Labor Price Item Price (Incl. negot. Coeff.) 1 0 -$ 0 -$ -$ 2 0 -$ 0 -$ -$ 3 0 -$ 0 -$ -$ 4 0 -$ 0 -$ -$ -$ $175,957.12 $16,715.93 $192,673.05 Equipment Attest: Bonnie Walton, City Clerk 10/2/2014 Provide all labor, materials and equipment to (4) Demo 4plex buildings as per good faith survey dated 9/24/14 and per attached scope of work dated 9/24/14. FORMA Construction Company Wood and Plastics Thermal and Moisture Protection Electrical CSI Division Description JOC Contractor Approval Signatures: Total Work Order Amount Washington State Sales Tax (9.5% City of Renton) Modification No.: Description of Work: Additional information can be found on the attached Work Order Plan CSI Summary of Work Order Items Listed in Unit Price Book Project Manager Denis Law, Mayor Job Order Contract: Community Services Project Number:Sunset 4 Plex Demo 1055 S Grady Way Renton, WA 98057 Work Order No.: 10/2/2014 Materials Total of all items listed is Price Book Work Order Items Not Listed in Unit Price Book Notes: 1. This Work Order Total of all items not listed in Price Book Date: Total Funding Amount Furnishings Special Construction Mechanical Conveying Systems Work Item Description Include type of material, manufacture name, part number, type of work… Labor General Requirements Site Construction Concrete Masonry Metals Openings Finishes Specialties 8c. - Community Services Department recommends approval of a Job Order Page 28 of 267 PROJECT: Sunset 4 Plex Demo Location: 1055 S Grady Way October 2, 2014 Renton, WA 98057 Estimated duration: • 1 Weeks Pre con • 10 Abatement Permit Proccess • 6 Weeks Construction • 1 Week Punch list/Demob Description: Provide all labor, materials and equipment to (4) Demo 4plex buildings as per good faith survey dated 9/24/14 and per scope of work listed below dated 9/24/14. General information • The performance of all work will be in accordance with OSHA and WISHA safety requirements. Work in accordance with applicable construction and buildings codes. • The project start date will depend on award notice to proceed. • All construction debris will be cleaned up during construction; all debris shall be disposed of off-site. • Final cleaning of the site to remove any remaining debris or materials shall be accomplished at the conclusion of the project. • This is a prevailing wage project. Work Plan • Temp Fence o Provide temp fence around the perimeter approximately 845lf for the duration of the building demo plus 1 month till the rental agreement can be transferred into the city’s name. • Abatement o Compete all abatement work at all (4) buildings as per the asbestos survey reports dated 9/24/14 to include any and all permits, reports and completed per city codes and ordinances. o Perform daily job site cleanup and perform final job site cleanup at the completion of your scope of work. • Demo o Provide all permits needed to complete the demo of the structures and utilities. o Provide locates o Provided erosion control around site and at catch basins o Disconnect and cap all utilities to the sidewalk. o Coordinate and disconnect of the power to the buildings back to the pole. o Provided water connection, hydrant permit if needed to control dust. o Demo concrete side walk and from the front doors to the main side walk and throughout the property and show on demo site plan. o Demo (9) trees and roots balls and all brush at planter boxes next to house. . o Demo existing galvanized fencing around the property, lineal foot TBD on site some will remain in place. 8c. - Community Services Department recommends approval of a Job Order Page 29 of 267 o Provide all labor, materials and equipment to compete the demo of all (4) buildings, foundations, slab as per demo site plan. o Grade all areas demoed to be flat and free from holes and uneven surfaces. o Perform daily job site cleanup and perform final job site cleanup at the completion of your scope of work. Assumptions o All areas work areas will be clear and ready for construction each day for us to start work. o All work will be done during normal work hours. o No grass or hydro seeding required o No backfill required Utility outages • Power disconnects to houses, utility capping Hours of operation • Normal work hours 7:00AM-5:00PM Monday-Friday Hazardous materials • See good faith survey dated 9/24/14 8c. - Community Services Department recommends approval of a Job Order Page 30 of 267 Peter Renner Sunset 4 Plex Demo FORMA CONSTRUCTION 10/2/2014 1of2 Hier4Level 4 Item Takeoff Labor Mat Equip Grand Code Item Code Description Note Quantity Unit Total Total Total Total Abatement 01412650 0100 Permits rule of thumb, most cities, maximum PSCAA Permit 30,000.0 %Job 600.00 02411919 0840 Selective demolition, rubbish handling, dumpster, 40 C.Y., 10 ton capacity, weekly rental, includes one Asbestos containing roofing materials 1.0 week 860.00 860.00 dump per week, cost to be added to demolition cost. 02821341 2000 Asbestos abatement equipment, worker protection, whole body, foot, head cover & gloves, plastic 2 suits per man per day for 10 days (5 Men)100.0 EA 1,250.00 1,250.00 02821341 2550 Asbestos abatement equipment, respirator, single use, cartridge 2 per man per day for 10 days 100.0 EA 695.00 695.00 02821345 0210 OSHA Testing, asbestos sampling, PCM analysis, NIOSH 7400, maximum Personal air monitor analyisis 10.0 EA 995.00 31.00 1,026.00 02821345 1000 OSHA Testing, cleaned area samples 1 per location 8.0 EA 396.00 21.44 417.44 02821345 1110 OSHA Testing, cleaned area samples, PCM air sample analysis, NIOSH 7400, maximum 10.0 EA 995.00 32.60 1,027.60 02821347 5020 Asbestos waste packaging, handling & disposal, disposal charges, excl. haul, max Dump fees for roofing and all asbestos 62.0 CY 21,700.00 materials Abatement Total 2,386.00 2,890.04 27,576.04 Building Demo 01543320 0320C Rent excavator diesel hydraulic crawler mounted 2.5 CY capacity - Rent per week Rental for Excavator A 2.0 week 9,240.00 9,240.00 01543320 0320C Rent excavator diesel hydraulic crawler mounted 2.5 CY capacity - Rent per week Rental for Excavator B 2.0 week 9,240.00 9,240.00 01543320 0320E Rent excavator diesel hydraulic crawler mounted 2.5 CY capacity - Crew daily cost Operator for Excavator A 2.0 days 3,600.00 3,600.00 01543320 0320E Rent excavator diesel hydraulic crawler mounted 2.5 CY capacity - Crew daily cost Operator for Excavator B 2.0 days 3,600.00 3,600.00 01543320 0342C Rent excavator attachment, bucket thumbs - Rent per week Attachement for Excavator A 2.0 week 1,440.00 1,440.00 01543320 0342C Rent excavator attachment, bucket thumbs - Rent per week Attachement for Excavator B 2.0 week 1,440.00 1,440.00 01543650 0100 Mobilization or demobilization, dozer, loader, backhoe or excavator, above 150 H.P., up to 50 miles Mob and demob for excavator A 2.0 EA 195.00 640.00 835.00 01543650 0100 Mobilization or demobilization, dozer, loader, backhoe or excavator, above 150 H.P., up to 50 miles Mob and demob for excavator B 2.0 EA 195.00 640.00 835.00 Building Demo Total 390.00 29,840.00 30,230.00 Clear and Grub 01543320 0550B Rent brush chipper diesel engine 12" cutter head 130 HP - Rent per day 2.0 days 574.00 574.00 01543320 0550E Rent brush chipper diesel engine 12" cutter head 130 HP - Crew daily cost 2.0 days 792.80 792.80 31111010 7280 Clearing & grubbing, tree removal congested area, 48" diameter, aerial lift truck 9.0 EA 7,065.00 4,725.00 11,790.00 Clear and Grub Total 7,065.00 6,091.80 13,156.80 Concrete and asphalt demolition 01543310 2650B Rent saw concrete self-propelled gas 30 HP - Rent per day 1.0 days 100.00 100.00 01543310 2650E Rent saw concrete self-propelled gas 30 HP - Crew daily cost 1.0 days 175.20 175.20 01543320 0320C Rent excavator diesel hydraulic crawler mounted 2.5 CY capacity - Rent per week Rental for Excavator A 1.0 week 4,620.00 4,620.00 01543320 0325E Rent excavator diesel hydraulic crawler mounted 3.5 CY capacity - Crew daily cost Operator for Excavator A 5.0 days 12,270.00 12,270.00 01543320 0342C Rent excavator attachment, bucket thumbs - Rent per week Attachement for Excavator A 1.0 week 720.00 720.00 01543320 0450C Rent backhoe-loader 45 to 60 HP 3/4 CY capacity - Rent per week 1.0 week 885.00 885.00 01543320 0450E Rent backhoe-loader 45 to 60 HP 3/4 CY capacity - Crew daily cost 5.0 days 1,837.00 1,837.00 01543320 0486C Rent backhoe-loader attachment, hydraulic hammer 1200 ft lbs - Rent per week 1.0 week 650.00 650.00 01543320 0486E Rent backhoe-loader attachment, hydraulic hammer 1200 ft lbs - Crew daily cost 5.0 days 898.00 898.00 01543320 3880B Rent, Shovel/backhoe bucket, 1 CY - Rent per day 5.0 days 407.50 407.50 01543320 3880E Rent, Shovel/backhoe bucket, 1 CY - Crew daily cost 5.0 days 347.00 347.00 03811350 0300 Concrete sawing, concrete slabs, plain, up to 3" deep 100.0 LF 61.00 12.00 49.00 122.00 01543650 0020 Mobilization or demobilization, dozer, loader, backhoe or excavator, 70 H.P. to 150 H.P., up to 50 miles Mob and demo for back hoe 2.0 EA 146.00 284.00 430.00 Concrete and asphalt demolition Total 207.00 12.00 23,242.70 23,461.70 Erosion and Sediment Control 01311320 0160 Field personnel, general purpose laborer, average 0.5 week 712.50 712.50 31251416 0200 Synthetic erosion control, polypropylene mesh, stapled, 6.5 oz./ S.Y.120.0 SY 42.00 273.60 315.60 Erosion and Sediment Control Total 754.50 273.60 1,028.10 General Conditions 01412650 0100 Permits rule of thumb, most cities, maximum Permits procurment for Hydrants, Power utilities 175,000.0 %Job 3,500.00 disconnect 01311320 0160 Field personnel, general purpose laborer, average Dust control 2 men 3weeks 3.0 week 4,275.00 4,275.00 01562650 0100 Temporary Fencing, chain link, 6' high, 11 ga 875.0 LF 1,653.75 2,266.25 3,920.00 01543340 2200C Rent electric generator gas engine 5 kW - Rent per week 4.0 week 180.00 180.00 01543340 6410D Rent toilet portable chemical - Rent per month 2.0 mnth 366.00 366.00 01543340 7100C Rent truck pickup 3/4 ton 2 wheel drive - Rent per week Work truck 6.0 week 1,050.00 1,050.00 01543340 7100E Rent truck pickup 3/4 ton 2 wheel drive - Crew daily cost 30.0 days 4,638.00 4,638.00 General Conditions Total 5,928.75 2,266.25 6,234.00 17,929.00 Hauling and Dump Fees 01543320 5310C Rent truck, dump, 4 axle, 25 ton, 18 C.Y. payload, 450 H.P. - Rent per week Trucking debris truck A 1.0 week 1,425.00 1,425.00 01543320 5310C Rent truck, dump, 4 axle, 25 ton, 18 C.Y. payload, 450 H.P. - Rent per week Trucking debris truck B 1.0 week 1,425.00 1,425.00 01543320 5310E Rent truck, dump, 4 axle, 25 ton, 18 C.Y. payload, 450 H.P. - Crew daily cost Operator for truck A 5.0 days 4,335.00 4,335.00 01543320 5310E Rent truck, dump, 4 axle, 25 ton, 18 C.Y. payload, 450 H.P. - Crew daily cost Operator for truck B 5.0 days 4,335.00 4,335.00 02411920 0100 Selective demolition, dump charges, typical urban city, building construction materials, includes tipping Concrete slab, brick walls, footings and side 240.0 ton 19,680.00 19,680.00 fees only walks dump fees 188cy * 1.28= 240 tons 02411920 0500 Selective demolition, dump charges, typical urban city, reclamation station, usual charge, includes tipping Co-mingled debris flooring, roofing, drywall 154.0 ton 12,628.00 12,628.00 fees only framing dump fees 14000sf (100sf=11cy)(140*11=1540cy)(40yr dumpster can hold 10 tons)(1540/40=38.5 dumpster at 10 tons=385 tons) 02411919 0840 Selective demolition, rubbish handling, dumpster, 40 C.Y., 10 ton capacity, weekly rental, includes one Dumpster rental A for co-mingled debris 3.0 week 2,580.00 2,580.00 dump per week, cost to be added to demolition cost. 02411919 0840 Selective demolition, rubbish handling, dumpster, 40 C.Y., 10 ton capacity, weekly rental, includes one Dumpster rental B for co-mingled debris 3.0 week 2,580.00 2,580.00 dump per week, cost to be added to demolition cost. Hauling and Dump Fees Total 37,468.00 11,520.00 48,988.00 Grand Total 16,731.25 42,909.89 76,928.50 162,369.648c. - Community Services Department recommends approval of a Job Order Page 31 of 267 Peter Renner Sunset 4 Plex Demo FORMA CONSTRUCTION 10/2/2014 2of2 CSI Division Labor Mat Subs Equip Other User Total 01 General Requirements 6,641 2,266 70,591 4,100 83,598 02 Site Construction 7,704 38,614 6,338 52,656 13 Special Construction 2,386 2,030 21,700 26,116 Renton City Cost Index 6,820 Subtotal 169,189 City Renton Coefficient 1.04 6,768 Total Estimate 175,9578c. - Community Services Department recommends approval of a Job Order Page 32 of 267 Notes: •875 lf of Temp Fence •Remove approximately 750’ of sidewalk •Remove 9 large trees •Remove all brush and small trees on site Temp Fence Remove Trees Remove Sidewalk Renton Housing Authority Sunset 4 Plex Building Demolition Site Plan 8c. - Community Services Department recommends approval of a Job Order Page 33 of 267 8c. - Community Services Department recommends approval of a Job Order Page 34 of 267 8c. - 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Community Services Department recommends approval of a Job Order Page 143 of 267 8c. - Community Services Department recommends approval of a Job Order Page 144 of 267 8c. - Community Services Department recommends approval of a Job Order Page 145 of 267 8c. - Community Services Department recommends approval of a Job Order Page 146 of 267 8c. - Community Services Department recommends approval of a Job Order Page 147 of 267 8c. - Community Services Department recommends approval of a Job Order Page 148 of 267 8c. - Community Services Department recommends approval of a Job Order Page 149 of 267 8c. - Community Services Department recommends approval of a Job Order Page 150 of 267 8c. - Community Services Department recommends approval of a Job Order Page 151 of 267 8c. - Community Services Department recommends approval of a Job Order Page 152 of 267 8c. - Community Services Department recommends approval of a Job Order Page 153 of 267 8c. - Community Services Department recommends approval of a Job Order Page 154 of 267 8c. - Community Services Department recommends approval of a Job Order Page 155 of 267 8c. - Community Services Department recommends approval of a Job Order Page 156 of 267 8c. - Community Services Department recommends approval of a Job Order Page 157 of 267 8c. - Community Services Department recommends approval of a Job Order Page 158 of 267 8c. - Community Services Department recommends approval of a Job Order Page 159 of 267 8c. - Community Services Department recommends approval of a Job Order Page 160 of 267 8c. - Community Services Department recommends approval of a Job Order Page 161 of 267 8c. - Community Services Department recommends approval of a Job Order Page 162 of 267 CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE PROPERTY TAX LEVY FOR THE YEAR 2015. I WHEREAS, the Council has properly given notice of the public hearing to consider the City's 2015-16 proposed budget pursuant to RCW 84.55.120; and WHEREAS, the Council, after hearing and after considering all relevant evidence and testimony presented, has determined that there is a need to increase the property tax revenues from the prior year, in addition to the increases resulting from annexations, the addition of new construction, and improvements to property, and any increases in the value of state-assessed property, in order to discharge the expected expenses and obligations of the City; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. The regular property tax levy is hereby authorized for 2015 in the amount of $36,420,000, which is made up of the 2014 base levy plus the following: • 1% growth limit factor in the amount of $348,118; • New annexation levy in the amount of $20,176; • New construction levy in the amount of $524,718; • Re-levy of prior year refunds in the amount of $103,802; and • Re-levy of prior year corrections in the amount of $611,995. This is an increase of $896,000 or 2.5% from the 2014 actual regular levy of $35,524,502. 1 10a. - Authorize 2015 Property Tax Levy (Approved via 10/20/2014 Committee of Page 163 of 267 ORDINANCE NO. Without the annexation levy, new construction levy, and re-levy of prior year refunds and correction amounts, the base 2015 levy is $35,159,903, which is 1.03% or $364,599 below the actual 2014 levy. SECTION II. This ordinance shall be effective upon its passage, approval, and five (5) days after publication. PASSED BY THE CITY COUNCILthis day of , 2014. Jason A. Seth, Acting City Clerk APPROVED BY THE MAYOR this day of , 2014. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1845:10/22/14:scr 2 10a. - Authorize 2015 Property Tax Levy (Approved via 10/20/2014 Committee of Page 164 of 267 CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, ESTABLISHING THE PROPERTY TAX LEVY FOR THE YEAR 2015 FOR GENERAL CITY OPERATIONAL PURPOSES IN THE AMOUNT OF $36,420,000. WHEREAS, the Council has met and considered its budget for the fiscal year 2015 and 2016; and WHEREAS, the Council, after hearing and considering all relevant evidence and testimony presented, determined that, in order to discharge the expected expenses and obligations of the City and in its best interest, the City of Renton requires a regular levy in the amount of $36,420,000 for 2015; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. The regular property tax levy is hereby authorized for 2015 in the amount of $36,420,000. This amount includes: $348,118 or 1% in amounts authorized by the levy growth limit factor over the maximum allowable levy in 2014. In addition, the 2015 levy amount will also include additional revenue resulting from partial correction of 2013 levy errors in the amount of $611,995; new construction and improvements to property in the amount of $524,718; re-levy of prior year refunds in the amount of $103,802; adjustments as a result of annexations that have occurred; and any increase in the value of state-assessed property. SECTION II. The regular levy includes levy for the Firemen's Pension at the rate of $0,225 per $1,000 assessed valuation. 1 10b. - Establish 2015 Property Tax Levy (Approved via 10/20/2014 Page 165 of 267 ORDINANCE NO. SECTION III. This ordinance shall be effective upon its passage, approval, and five (5) days after publication. PASSED BY THE CITY COUNCILthis day of , 2014. Jason A. Seth, Acting City Clerk APPROVED BY THE MAYOR this day of , 2014. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1841:10/22/14:scr 2 10b. - Establish 2015 Property Tax Levy (Approved via 10/20/2014 Page 166 of 267 CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTIONS 8-2-2 AND 8-2-3 OF CHAPTER 2, STORM AND SURFACE WATER DRAINAGE, SECTIONS 8-4-12, 8-4-24, 8-4-31 AND 8-4-33 OF CHAPTER 4, WATER, AND SECTION 8-5-15 OF CHAPTER 5, SEWERS, OF TITLE VIII (HEALTH AND SANITATION) OF THE RENTON MUNICIPAL CODE, ALLOWING FOR ADJUSTMENTS TO CURRENT UTILITY RATES FOR 2015 AND 2016, CLARIFYING THE WATER SHUTOFF FEE LANGUAGE AND CLARIFYING THE QUALIFICATIONS FOR REDUCED RATES. f -O) THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Subsection 8-2-2.G, Special Rates, of Chapter 2, Storm and Surface Water Drainage, of Title VIII (Health and Sanitation) of the Renton Municipal Code, is hereby amended as follows: G. Special Rates: 1. For a seventy-five percent (75%) rate subsidy for senior and/or disabled low-income customers: a. Senior and/or disabled citizens who qualified under RMC 8-4-31.C for low-income rates prior to August 1, 1994, are eligible for rates of two dollars and seventy-sixfifty two cents ($2.7652-) per month for 20135 and two dollars and eightv-sevensixty five cents ($2.8765) per month for 20146. b. Senior and/or disabled citizens who qualify under RMC 8-4-3LC for low-income rates after August 1,1994, and prior to May 31, 2008, are eligible for rates of three dollars and twentv-nineene cents ($3.2904) per month for 1 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 167 of 267 ORDINANCE NO. 20135 and three dollars and forty-twosixteen cents ($3.4246) per month for 20146. 2. All senior and/or disabled citizens qualifying under RMC 8-4-3l.C for low-income rates after May 31, 2008, are eligible for a fifty percent (50%) subsidy equal to a rate of six dollars and sjxtyftve cents ($6.6005) per month for 20135 and six dollars and eightv-sixthirty five cents ($6.8635) per month for 20146. SECTION II. Subsection 8-2-3.E.l, of subsection 8-2-3.E, Charges For Surface Water Utility, of Chapter 2, Storm and Surface Water Drainage, of Title VIII (Health and Sanitation) of the Renton Municipal Code, is hereby amended as follows: 1. The following schedule is hereby adopted as the monthly charges to be paid to the City for surface water utility services: a. Single-family dwelling $13.202.09 per unit for 20135 and $13.732v69-for 20146. b. Low intensity, 0.5 acre or less $32.682-9r93-per acre for 20135 and $33.994rr42-per acre for 20146. c. Medium intensity, 0.5 acre or less $47.283.2-9 per acre for 20135 and $49.175.46 per acre for 20146. d. High intensity, 0.5 acre or less $60.9555.82 per acre for 20135 and $63.395064 per acre for 20146. e. Low intensity, more than 0.5 acre $65.3759.87 per acre for 20135 and $67.982.86 per acre for 20146. 2 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 168 of 267 ORDINANCE NO. f. Medium intensity, more than 0.5 acre $94.5086.54 per acre for 20135 and $98.280.87 per acre for 20146. g. High intensity, more than 0.5 acre $121.90-14^63 per acre for 20135 and $1267847.24 per acre for 20146. h. Gravel pits: $131.422Qr35 per acre for 20135 and $136.682037 for 20146. i. City streets: $32.770,01 per acre for 20135 and $34.084,54 per acre for 20146. SECTION III. Subsection 8-4-12.A, of subsection 8-4-12, Delinquent Charges, of Chapter 4, Water, of Title VIII (Health and Sanitation) of the Renton Municipal Code, is hereby amended as follows: A. All charges for water service shall be charged against the premises to which the services were furnished and the City shall have a lien against the premises to which said water services were furnished for four (4) months' charges due or to become due, but not for any charges more than four (4) months past due. Such lien may be enforced by cutting off the water service to the premises until such time as the delinquent unpaid charges, together with the sum of sixty dollars ($60.00) additional for the expense of turning the water off SrPr4-on processing the utility shutoff list, have been paid to the Administrative Services Administrator or his/her designated representative. SECTION IV. Subsection 8-4-24.A. 1, Fire Protection Charges, of Chapter 4, Water, of Title VIII (Health and Sanitation) of the Renton Municipal Code, is hereby amended as follows: 3 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 169 of 267 ORDINANCE NO. 1. Fire Protection Charges: The private fire protection charges are hereby fixed in the following schedule: Meter 20135 20146 Rates Rates 1 inch SOO?$6.27 $6.27 1 Vi inch 5OSSS7.01 $7.01 2 inch $8.58$9.01 $9.01 3 inch 522r€6$23.79 $23.79 4 inch $27.88$29.27 $29.27 6 inch $49rO§$42.06 $42.06 8 inch $53.95$56.65 $56.65 10 inch $69r60$73.08 $73.08 SECTION V. Subsection 8-4-3l.B, Metered Rates, of Chapter 4, Water, of Title VIII (Health and Sanitation) of the Renton Municipal Code, is hereby amended as follows: B. Metered Rates: 1. The minimum rates for metered water supplied within the City in one (1) month or fractional period thereof are hereby fixed in the following schedule: 20146 Rates 20135 Rates 20135 Rates Single-20146 Rates Single-family/duplex, Private irrigation, City family/duplex, Private irrigation, Size of multi-family, irrigation multi-family, City irrigation service non-residential non-residential 3/4" $16.76$17.60 S10.08S10.58 $17.60 $10.58 1" S31.71S34.89 $18.02$18.92 $34.89 $18.92 1 1/2" S61.12S67.33 $30.75$32.29 $67.33 $32.29 2" $100.50$105.52 $17.10$49.46 $105.52 $49.46 3" $206.18$216.81 $9069$ 104.67 $216.81 $104.67 4" $315.00$330.75 S148.24S155.65 $330.75 $155.65 6" S611.50S645.28 $280.77$294.81 $645.28 $294.81 8" Sl.202.80Sl.262.94 S611.11S645.13 $1,262.94 $645.13 10" Sl.792.98Sl.882.63 S790.05S829.55 $1,882.63 $829.55 12" S2.609.39S2.739.86 Sl.140.86Sl.197.90 $2,739.86 $1,197.90 4 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 170 of 267 ORDINANCE NO. 2. Commodity Rates: Three (3) consumption blocks will be established for single-family and duplex customers. The size of the first block will be less than five hundred (500) cubic feet of water consumed per month. The second block will be five hundred (500) to one thousand (1,000) cubic feet of water consumed per month. The third block will be over one thousand (1,000) cubic feet of water consumed per month. The rates for these three (3) blocks are as follows: 20135 Rates 20146 Rates Less than 500 cubic feet/mo. $2.542-/100cf $2.54/100cf 500 - 1,000 cubic feet/mo. $3.4124/100cf $3.41/100cf Over 1,000 cubic feet/mo. $4.i30/100cf $4.30/100cf Customers that are multi-family, non-residential, private irrigation and City irrigation will pay for consumption at the following rates per one hundred (100) cubic feet: 20135 Rates 20146 Rates Multi-family $343$3.29 $3.29 Non-residential $3.32$3.48 $3.48 Private Irrigation $03i$5.58 $5.58 City Irrigation $3r74$3.92 $3.92 SECTION VI. Subsection 8-4-3l.C, Senior Citizens and Disabled Persons, of Chapter 4, Water, of Title VIII (Health and Sanitation) of the Renton Municipal Code, is hereby amended as follows: C. Senior Citizens And Disabled Persons: The following is hereby established for certain senior citizens and disabled persons who are economically disadvantaged as herein set forth: 5 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 171 of 267 ORDINANCE NO. 1. Low-Income Seniors: A "low-income senior citizen" is defined as a person sixty-one (61) years of age or older who resides in a single-family dwelling that is separately metered with a City water meter for water usage, either as owner, purchaser, or renter, with the utility account under his/her name, and whose total combined household income, including thtat-of his or her spouse OF co tenant, does not exceed the annual income threshold for low-income rate eligibility. The annual income threshold for eligibility for low-income rate shall be adjusted each calendar year, using the Income Guidelines for King County as provided annually by the U.S. Department of Housing and Urban Development (HUD) an4 or King County's qualifying income criteria for a senior citizen/disability property tax exemption, whichever is more favorable. Any household with a dDisposable income, defined by RCW 84.36.383(5), includes all income sources and amounts received by the owner, purchaser or renter, his/her spouse/domestic partner and anv co-tenants. Any household with a disposable income of thirty percent (30%) or less of the median household income for King County and qualified for a subsidy prior to May 31, 2008, will be eligible for a seventy-five percent (75%) rate subsidy. All other households with an annual disposable income less than King County's maximum qualifying income for a senior citizen/disability property tax exemption are eligible for a fifty percent (50%) rate subsidy. For households with more than two (2) individuals qualifying under Subsection C of this Section, an additional five 6 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 172 of 267 ORDINANCE NO. thousand dollars ($5,000) is added to the income threshold per qualifying individual. 2. Low-Income Disabled Citizen: A "low-income disabled citizen" is defined as: a) a person qualifying for special parking privileges under RCW 46TTL6.381(1)(O) through (f) RCW 46.19.010: b) a blind person as defined in RCW 74.18.020; c) a disabled, handicapped, or incapacitated person as defined under any other existing State or Federal program; or d) a person on home kidney dialysis treatment who resides in a single-family dwelling that is separately metered for water usage, either as owner, purchaser or renter, with the utility account under his/her name, and whose total combined household income7 including that of his or her spouse or co tenant, does not exceed the annual income threshold for eligibility for low-income rate. 3. Qualified PersonsApplication: a. Every such A_person (if double occupancy, then both household members) shall meet either of the above requirements to qualify for senior citizen and disabled rate(s). Every such person (if double occupancy, then both household members) shall file with the Utilities billing section of the City, his or her affidavit, that he/she or they are qualified to be charged the special rate for such utility services herein stated. b. Such statement shall contain such other information as the Utilities billing section may prescribe, including but not limited to address, ownership or interest in the dwelling occupied by such applicant(s), amount, 7 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 173 of 267 ORDINANCE NO. source and nature of all household members' income from any and all sources^ proof of disability status and/or age, together with the applicant's unqualified promise to forthwith notify the City of any circumstances or change in condition which would make the applicant(s) ineligible to receive said special rate(s). The Utilities billing section may establish rules and procedures for implementing this Section. 4. Low-Income Rates: a. For a seventy-five percent (75%) rate subsidy: (1) For those senior citizens and disabled persons who qualified as economically disadvantaged, and were on this low-income rate prior to August 1, 1994, the rate for water service relating to such single-family dwelling in which such eligible person or persons permanently reside is twoene dollars and ninety eight cents ($2J)4T98) per month for 20135 and two dollars and eight cents ($2.08) per month for 20146, limited to nine hundred (900) cubic feet of water per month. Any water consumption over nine hundred (900) cubic feet per month shall be charged as provided in Subsections A and B of this Section. (2) For those senior citizens and disabled persons who qualify as economically disadvantaged, and were on this low-income rate after August 1, 1994, and prior to May 31, 2008, the rate for water service relating to such single-family dwelling in which such eligible person or persons permanently reside is four dollars and thirtv-sevensixtocn cents ($4.37i€) per month for 20135 and four dollars and thirty-seven cents ($4.37) per month for 20146, 8 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 174 of 267 ORDINANCE NO. limited to nine hundred (900) cubic feet of water per month. Any water consumption over nine hundred (900) cubic feet per month shall be charged as provided in Subsections A and B of this Section, except for those persons who qualify under home kidney dialysis. These customers are limited to one thousand seven hundred (1,700) cubic feet of water per month before any excess is charged as provided in Subsections A and B of this Section. b. For all other senior citizens and/or disabled persons who qualify for low-income rates according to the criteria in subsections CI and C.2 of this Section after May 31, 2008, they will be eligible for a fifty percent (50%) subsidy on the charges for water service relating to such single-family dwelling in which such eligible person or persons permanently reside. The fifty percent (50%) subsidy will apply to the basic charge and commodity charge only. 5. For those senior citizens sixty-one (61) years of age or older and/or disabled citizens, when such seniors and/or disabled citizens are not otherwise eligible for special rates as low-income seniors and/or disabled citizens, but who qualify for property tax exemption pursuant to RCW 84.36.381(5)(a) and are not residents of the City, shall be exempt from the fifty percent (50%) utility surcharge applicable to those customers not residents of the City. To receive this exemption the applicant must provide the information required under subsection C3 of this Section. 9 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 175 of 267 ORDINANCE NO. SECTION VII. Subsection 8-4-33.B of section 8-4-33, When Due and Payable, of Chapter 4, Water, of Title VIII (Health and Sanitation) of the Renton Municipal Code, is hereby amended as follows: B. If customers' water bills are not paid by the due date (twenty-five (25) days from the date of billing) they will receive a mailed shutoff notice stating that if their accounts become delinquent because of nonpayment after forty:five (45) days from the date of billing the Planning/Building/Public Works Department will be directed to cut off the water service to the premises and enforce the lien upon the property to which service has been rendered, and such lien shall be superior to all other liens or encumbrances except those for general taxes and special assessments. Such liens may be foreclosed by the City in the manner provided by law for the enforcement of the same, and for delinquent water charges, in addition to all other remedies provided. There will be an additional sum of sixty dollars ($60.00) charged for the expense of turning tho wator on processing the utility shutoff list. Water service will be restored when this fee and all charges to the City plus penalties have been paid. For requests to turn the water back on that occur after 3:00 p.m., an additional after-hours service charge of ninety dollars ($90.00) will be assessed and must be paid at the time of the request. When City personnel or City agents must notify tenants of impending shutoff of water, there shall be imposed, in addition to all other fees and charges, a fee of five dollars ($5.00) per unit which was notified whether in 10 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 176 of 267 ORDINANCE NO. person, by mail, by posting, by door hanging or other means reasonably calculated to provide notice to the tenant. SECTION VIII. Subsection 8-5-15.A, Disposal Rates, of Chapter 5, Sewers, of Title VIII (Health and Sanitation) of the Renton Municipal Code, is hereby amended as follows: A. Disposal Rates: The monthly rates and charges for sewage disposal service shall be as follows: 1. Single-Family: The 20135 rate is twenty-sevens** dollars and sixty- fivethirty throe cents ($27.65033); the 20146 rate is twenty-seven dollars and sixty-five cents ($27.65). 2. All Other Users: The 20135 rate is aA base charge of four dollars and twenty-five cents ($4,205) plus threetw© dollars and twelveninoty sovon cents ($3.123TQ7) per month for each one hundred (100) cubic feet of water used, but not less than twenty-sevens** dollars and sixty-fivethirty throo cents ($27.656r33) per month; the 20146 rate is aA base charge of four dollars and twenty-five cents ($4.25) plus three dollars and twelve cents ($3.12) per month for one hundred (100) cubic feet of water used, but not less than twenty-seven dollars and sixty-five cents ($27.65) per month. 3. Charges For Sewer Service Without City Water: In the event that water obtained from sources other than purchased from the City is either discharged or drained into the sewer system, users shall be charged by one (1) of the two (2) following methods: 11 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 177 of 267 ORDINANCE NO. a. For single-family residences: J_he 20135 rate is twenty-sevens^ dollars and sixtv-fivethirty throo cents ($27.652033) per month; the 20146 rate is twenty-seven dollars and sixty-five cents ($27.65) per month. b. For other than single-family dwellings, the Public Works Administrator or designee shall install a water meter into such private water system at cost to property owners, and the method of billing shall be in compliance with Subsection A.2 of this Section. SECTION IX. Subsection 8-5-15.D, Additional Charges, of Chapter 5, Sewers, of Title VIII (Health and Sanitation) of the Renton Municipal Code, is hereby amended as follows: D. Additional Charges: In addition to the foregoing charges specified in this Section, the following rates shall be charged: 1. For each single-family dwelling unit, aA charge of forty-twothirty nino dollars and threesovonty nino cents ($42.033079) per month and a rate adjustment charge of fifty-eight one dollar and sixtoon cents ($0.58jrr4r§) per month payable to for King County Wastewater in accordance with the Interlocal Agreement with King County Wastewater, for each single family dwelling unit. 2. For all users other than single-family, aA charge of forty-twothirty nme dollars and threeseventy nine cents ($42.033079) per month and a rate adjustment charge of fifty-eight one dollar and sixteen cents ($0.584r4j;) per month payable to for King County Wastewater for each seven hundred fifty (750) cubic feet, or any fraction thereof, of water used in accordance with the 12 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 178 of 267 ORDINANCE NO. Interlocal Agreement with King County Wastewater, for all usors other than single family. 3. Any additional charges hereafter imposed by King County Wastewater under the "Industrial Cost Recovery" or "Industrial Waste Surcharge" programs required under the FWPCA (PL 92-500), Section 204, or as same may be amended hereafter, plus fifteen percent (15%) thereof as an additional charge for the City's cost of implementing such programs. 4. Senior and/or disabled low income rates: a. For a seventy-five percent (75%) subsidy: (1) Senior and/or disabled low-income citizens who qualified under RMC 8-4-31.C for low-income rates prior to August 1,1994, are eligible for a nonsubsidized rate of forty-twothirty nine dollars and threeseventy nino cents ($42.033079) per month and a rate adjustment charge of fifty-eight one dollar and sixteen cents ($0.581rj£) per month payable to for King County Wastewater in accordance with the Interlocal Agreement with King County Wastewater, and a subsidized rate of two dollars and thirty-eighttwonty seven cents ($2.3827) per month for City sewer charges for a total of forty-fourth roe dollars and ninety- ninetwonty two cents ($44.993.22) for 20135; and a nonsubsidized rate of forty- twothirty nino dollars and threesovonty nino cents ($42.033079) per month and a rate adjustment charge of fifty-eight one dollar and sixteen cents ($0.58jrr4€) per month payable to for King County Wastewater in accordance with the Interlocal Agreement with King County Wastewater, and a subsidized rate of two 13 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 179 of 267 ORDINANCE NO. dollars and thirty-eight cents ($2.38) per month for City sewer charges for a total of forty-fourthfee dollars and ninety-ninethirty three cents ($44.993.33) for 20146. (2) Senior and/or disabled citizens who qualify under RMC 8-4- 31.C for low-income rates after August 1, 1994, and prior to May 31, 2008, are eligible for a nonsubsidized rate of forty-twothirty nine dollars and threeseventy- fH-fte cents ($42.0339.79) per month and a rate adjustment charge of fifty-eight one dollar and sixteen cents ($0.58446) per month payable to for King County Wastewater in accordance with the Interlocal Agreement with King County Wastewater, and a subsidized rate of six dollars and ninety-twofifty nino cents ($6.9259) per month for City sewer charges for a total of forty-ninesovon dollars and fiftv-threefew cents ($49.537^4) for 20135; and a nonsubsidized rate of forty-twothirty nino dollars and threeseventy nino cents ($42.033079) per month and a rate adjustment charge of fifty-eight ono dollar and sixteen cents ($0.584rrl45) per month payable to for King County Wastewater in accordance with the Interlocal Agreement with King County Wastewater, and a subsidized rate of six dollars and ninety-two cents ($6.92) per month for City sewer charges for a total of forty-ninesevon dollars and fifty-threeoighty seven cents ($49.537^7) for 20146. b. All other senior and/or disabled citizens qualifying under RMC 8-4- 31.C for low-income rates after May 31, 2008, are eligible for a fifty percent (50%) subsidy. For 20135: a nonsubsidized rate of forty-twothirty nino dollars 14 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 180 of 267 ORDINANCE NO. and threesovonty nino cents ($42.03307-9) per month and a rate adjustment charge of fifty-eight one dollar and sixteen cents ($0.584r46) per month payable to for King County Wastewater in accordance with the Interlocal Agreement with King County Wastewater, and a subsidized rate of thirteen dollars and eighty- threesovonteen cents ($13.8347-) per month for City sewer charges for a total of fifty-sixfew dollars and forty-fourtwe4ve cents ($56.444r42-); For 20146: a nonsubsidized rate of forty-twothirty nine dollars and threeseventy nine cents ($42.033079) per month and a rate adjustment charge of fifty-eight one dollar and sixteen cents ($0.584T4§) per month payable to for King County Wastewater in accordance with the Interlocal Agreement with King County Wastewater, and a subsidized rate of thirteen dollars and eighty-three cents ($13.83) per month for City sewer charges for a total of fifty-sixfew dollars and forty-foursoventy eight cents ($56444.73). SECTION X. These rates become effective with billings computed on or after January 1, 2015 for the 2015 rates and January 1, 2016 for the 2016 rates. SECTION XI. This ordinance shall be effective on January 1, 2015. PASSED BY THE CITY COUNCILthis day of , 2014. Jason Seth, Acting City Clerk 15 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 181 of 267 ORDINANCE NO. APPROVED BY THE MAYOR this day of , 2014. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1834:9/22/14:scr 16 10c. - 2015/2016 Utility Rates (Approved via 10/20/2014 Utilities Page 182 of 267 CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 8-1-10 OF CHAPTER 1, GARBAGE, OF TITLE VIII (HEALTH & SANITATION) OF THE RENTON MUNICIPAL CODE, RELATING TO YEAR 2015 AND 2016 SERVICES AND UTILITY RATES FOR ALL CUSTOMER CLASSES. THE CITY COUNCIL OF THE CITY OF RENTON WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Section 8-1-10, Rates for Services, of Chapter 1, Garbage, of Title VIII (Health and Sanitation) of the Renton Municipal Code, is hereby amended as follows: 8-1-10: RATES FOR SERVICES: The following schedule is hereby adopted as the monthly charges to be paid to the City for services rendered in each category: A. Residential Customers: 1. For garbage cans, carts, and/or garbage units: Every Other Week Garbage & Recycling, 20135 Renton 20146 Renton Weekly Yard Waste & Food Scraps SWU Monthly SWU Monthly Service Level Rates Rates Mini Cart (20 Gallon) $ 402312.84 $12.84 35 Gallon Contractor Cart $204421.12 $21.12 45 Gallon Contractor Cart $ 203526.62 $26.62 64 Gallon Contractor Cart $302037.05 $37.05 96 Gallon Contractor Cart $ 52.0954.69 $54.69 Senior Mini Cart Rate (75% subsidy)/Existing $ 0063.21 $3.21 Senior Mini Cart Rate (50% subsidy) $ 0426.43 $6.43 Senior 35 Gallon Cart Rate (50% subsidy) $400610.56 $10.56 Senior 45 Gallon Cart Rate (50% subsidy) $ 406713.30 $13.30 Senior 64 Gallon Cart Rate (50% subsidy) $47.6518.53 $18.53 Senior 96 Gallon Cart Rate (50% subsidy) $2-00527.53 $27.53 Extra garbage, up to 15 gallons per unit/per pickup $-0743.93 $3.93 Extra yard waste cart rental $ O082.18 $2.18 Return Trip Charge per pickup $ 0435.70 $5.70 1 10d. - 2015/2016 Solid Waste Rates (Approved via 10/20/2014 Utilities Page 183 of 267 ORDINANCE NO. 2. Residential customers are allowed to change their garbage service level once per year without incurring an administrative fee. Each garbage service level change per year above the once per year allowance will result in an administrative fee of twenty-five dollars ($25.00). The one (1) year period shall begin January 1 and shall end December 31 each year. 3. Senior and/or disabled customers who qualified under Subsection 8-4-3IX of this Title for low-income rates for seventy-five percent (75%) subsidy prior to May 31, 2008, are eligible for a three dollars and six- twenty-one cents ($3.0621) fee for 20135 and three dollars and twenty-one cents ($3.21) fee for 20146 for 20 Gallon Mini Cart service. For services other than Mini Cart service, the rate schedule as provided in Subsection 8-1-10.A.1 will apply. All senior and/or disabled customers qualifying under Subsection 8-4-3LC for low income rates after May 31, 2008, are eligible for a fifty percent (50%) subsidy of the charges for the service level selected. 4. Premium Weekly Collection: Single-family residential customers may elect to have their garbage collected weekly for an additional fee of twenty- one dollars and fifty-threofive cents ($20.5321.55) per month for 20135 and twenty-one dollars and fifty-five cents ($21.55) per month for 20146. This fee will be added to the monthly garbage billing as an extra Premium Service Fee. 5. Miscellaneous Services: The City of Renton offers miscellaneous services at the following rates: 2 10d. - 2015/2016 Solid Waste Rates (Approved via 10/20/2014 Utilities Page 184 of 267 ORDINANCE NO. Services Cost per Pick Up On-Call Bulky Waste Collection 20135 Rates 20146 Rates White Goods, except Refrigerators/Freezers per unit $607369.02 $69.02 Refrigerators/Freezers per unit $703373.85 $73.85 Sofas/Chairs per unit $644264.18 $64.18 Mattresses per unit $5082-61.76 $61.76 B. Commercial Customers: 1. Multi-Family Carts: Customers have the following cart-based services available: Multi-Family Cart Service Level 20135 SWU Monthly Rates 20146 SWU Monthly Rates Weekly Can and Cart One 20 Gallon Mini Cart $24,8422.93 $22.93 Weekly Can and Cart One 35 Gallon Garbage Cart $203929.81 $29.81 Weekly Can and Cart One 64 Gallon Contractor Cart $400444.14 $44.14 Weekly Can and Cart One 96 Gallon Contractor Cart $506958.47 $58.47 Weekly Can and Cart Extra Cans or Units $6466.47 $6.47 Weekly Can and Cart Weekly Yard Waste Collection Cart $44.0743.12 $43.12 2. Commercial Carts: Customers have the following contractor cart- based services available: Commercial Cart Service Level 20135 SWU Monthly Rates 20146 SWU Monthly Rates Weekly Commercial Can and Cart One 20 Gallon Mini Cart $34^936.21 $36.21 Weekly Commercial Can and Cart One 35 Gallon Garbage Cart $303540.27 $40.27 Weekly Commercial Can and Cart One 64 Gallon Contractor Cart $402851.74 $51.74 Weekly Commercial Can and Cart One 96 Gallon Contractor Cart $605263.55 $63.55 Weekly Commercial Can and Cart Extra Cans or Units $0926.22 $6.22 Weekly Commercial Can and Cart Weekly Yard Waste Collection Cart $304941.46 $41.46 3. Hydraulically Handled Containers One (1) to Eight (8) Yards: The rate for the handling of hydraulically handled containers approved by the City's 3 10d. - 2015/2016 Solid Waste Rates (Approved via 10/20/2014 Utilities Page 185 of 267 ORDINANCE NO. contractor and the City for use by commercial, industrial and multiple-family residence establishments shall be as follows: a. Monthly Rates: Commercial Service Level 201*5_SWU Monthly Rates 20146 SWU Monthly Rates 1 Cubic Yard, 1 pickup/week $103.50$108.67 $108.67 1 Cubic Yard, 2 pickups/week $191.3S$204.09 $204.09 1 Cubic Yard, 3 pickups/week $2802-6$299.53 $299.53 1 Cubic Yard, 4 pickups/week $376.14$394.95 $394.95 1 Cubic Yard, 5 pickups/week $467.02$490.37 $490.37 1.5 Cubic Yards, 1 pickup/week $141.SS$148.97 $148.97 1.5 Cubic Yards, 2 pickups/week $271.11$284.70 $284.70 1.5 Cubic Yards, 3 pickups/week $100.11$420.43 $420.43 1.5 Cubic Yards, 4 pickups/week $529.67$556.16 $556.16 1.5 Cubic Yards, 5 pickups/week $658.93$691.87 $691.87 2 Cubic Yards, 1 pickup/week $178.87$187.81 $187.81 2 Cubic Yards, 2 pickups/week $315.11$362.37 $362.37 2 Cubic Yards, 3 pickups/week $511.36$536.93 $536.93 2 Cubic Yards, 4 pickups/week $677.61$711.49 $711.49 2 Cubic Yards, 5 pickups/week $84O85$886.05 $886.05 3 Cubic Yards, 1 pickup/week $251.50$267.22 $267.22 3 Cubic Yards, 2 pickups/week $196.39$521.21 $521.21 3 Cubic Yards, 3 pickups/week $738.28$775.19 $775.19 3 Cubic Yards, 4 pickups/week $980.16$1,029.17 $1,029.17 3 Cubic Yards, 5 pickups/week $1,222.05$1,283.16 $1,283.16 4 Cubic Yards, 1 pickup/week $330.00$346.50 $346.50 4 Cubic Yards, 2 pickups/week $647.40$679.77 $679.77 4 Cubic Yards, 3 pickups/week $9€4^0$1,013.04 $1,013.04 4 Cubic Yards, 4 pickups/week $1,282.08$1,346.19 $1,346.19 4 Cubic Yards, 5 pickups/week $1,599.58$1,679.56 $1,679.56 6 Cubic Yards, 1 pickup/week $178.80$502.74 $502.74 6 Cubic Yards, 2 pickups/week $911.99$992.24 $992.24 6 Cubic Yards, 3 pickups/week $1,111.18$1,481.74 $1,481.74 6 Cubic Yards, 4 pickups/week $1,877.37$1,971.24 $1,971.24 6 Cubic Yards, 5 pickups/week $2,343.56$2,460.74 $2,460.74 8 Cubic Yards, 1 pickup/week $626.71$658.05 $658.05 8 Cubic Yards, 2 pickups/week $1,210.82$1,302.86 $1,302.86 8 Cubic Yards, 3 pickups/week $1,851.91$1,947.65 $1,947.65 Commercial Detachable Container (loose) 4 10d. - 2015/2016 Solid Waste Rates (Approved via 10/20/2014 Utilities Page 186 of 267 ORDINANCE NO. 8 Cubic Yards, 4 pickups/week $2,469.01$2,592.46 $2,592.46 8 Cubic Yards, 5 pickups/week $3,083.12$3.237.27 $3,237.27 Extra loose cubic yard, per pickup $20.97$22.02 $22.02 Commercial Service Level 20135 SWU Monthly Rates 20146 SWU Monthly Rates Commercial Detachable Container (Compacted) 1 Cubic Yard Compactor $24084$ 259.19 $259.19 Commercial Detachable Container (Compacted) 1.5 Cubic Yards Compactor $356.72$374.55 $374.55 Commercial Detachable Container (Compacted) 2 Cubic Yards Compactor $458.15$481.37 $481.37 Commercial Detachable Container (Compacted) 3 Cubic Yards Compactor $675.18$708.94 $708.94 Commercial Detachable Container (Compacted) 4 Cubic Yards Compactor $892.20$936.81 $936.81 Commercial Detachable Container (Compacted) 6 Cubic Yards Compactor $1,325.59$1,391.87 $1,391.87 b. Rental Rates: Rental rates for one (1) to eight (8) yard containers will be paid in the monthly rates. c. Minimum Pickups: Minimum pickups for containers and compactors between one (1) and eight (8) yards will be once per week. 4. Temporary containers are rented and billings are handled directly by Waste Management, Inc. 5. Extra Charges: a. The following extra charges will apply for commercial services: Commercial Extra Service Fees 20135 20146 Commercial cart carry out charge if > 50 feet (per time) $O04$7.39 $7.39 Additional roll out fees over 25 feet, from point of safe truck access/ pickup $OO0$4.09 $4.09 Unlocking & locking gates and/or container lids, per pickup $4.03$4.23 $4.23 Return trip for containers not available for collection at regularly scheduled pickup time $30TO9$32.53 $32.53 5 10d. - 2015/2016 Solid Waste Rates (Approved via 10/20/2014 Utilities Page 187 of 267 ORDINANCE NO. b. Any extra yardage charges determined by the collection contractor due to overflowing containers will be charged per yard at the one (1) yard rate listed under subsection 8-l-10.B.3.a. 6. Special Services: Whenever special services not contained within this schedule are required, the rate charged for those special services shall be negotiated by the customer with the City and the collection contractor. C. Commercial Roll Off Customers: Commercial roll off customers are those who have a ten (10) to forty (40) yard container or compactor. These large disposal containers are lifted and weighed at the disposal facility. Commercial container customers pay a disposal pickup fee based upon the number of pickups, a weight-based fee and a container rental fee. Compactor customers pay a pickup fee based upon the number of pickups and a weight-based disposal fee. 1. Base Pickup Fees: The base pickup fees are as follows on a per occurrence basis: Commercial Roll Off Rates are Per Pickup 20135 20146 10 Yards Container $192.12$211.81 $201.72$222.40 15 Yards Container $206.21$227.35 $216.52$238.72 20 Yards Container $211.87$233.58 $222.16$245.26 30 Yards Container $229.70$253.24 $241.18$265.90 40 Yards Container $215.81$271.04 $258.13$284.59 10 Yards Compactor $218.64$241.05 $229.57$253.10 20 Yards Compactor $236.25$260.46 $248.06$273.48 30 Yards Compactor $253.91$279.94 $26€r€i$293.94 40 Yards Compactor $269.70$297.35 $2S3.19$312.22 The minimum pickups are twice per month. 6 10d. - 2015/2016 Solid Waste Rates (Approved via 10/20/2014 Utilities Page 188 of 267 ORDINANCE NO. 2. Rental Rates: The following are rental rates for roll off containers: Monthly Rental Rates 20135 20146 10 Yards Container $43rS4$46.03 $46.03 15 Yards Container -$62.57$65.70 $65.70 20 Yards Container $81.28$85.34 $85.34 30 Yards Container $ 100.02Sl05.02 $105.02 40 Yards Container Sl23.26Sl29.42 $129.42 3. Disposal Fees: In addition to the base charge per pick up and the monthly rental fee, the customer must pay weight-based disposal fees plus applicable tax. D. (Rep. by Ord. 4898, 3-19-2001) E. Classification and Appeal: Service category classifications shall be on the basis of the type and volume of solid waste and the purpose and type of the dwelling or facility being served as determined by the Public Works Administrator of the City, or the Administrator's duly authorized representative. Any person who shall deem their classification improper may appeal to the Solid Waste Coordinator within forty-five (45) days following their classification or change of classification. After the decision of the Solid Waste Coordinator, if the party appealing is still aggrieved, then the party may appeal to the Public Works Administrator, whose decision shall be final. SECTION II. These rates become effective with billings computed on or after January 1, 2015 for the 2015 rates and January 1, 2016 for the 2016 rates. SECTION III. This ordinance shall be effective January 1, 2015. 7 10d. - 2015/2016 Solid Waste Rates (Approved via 10/20/2014 Utilities Page 189 of 267 ORDINANCE NO. PASSED BY THE CITY COUNCILthis day of , 2014. Jason Seth, Acting City Clerk APPROVED BY THE MAYOR this day of , 2014. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1835:9/16/14:scr 8 10d. - 2015/2016 Solid Waste Rates (Approved via 10/20/2014 Utilities Page 190 of 267 CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING TITLE V (FINANCE AND BUSINESS REGULATIONS) OF THE RENTON MUNICIPAL CODE, IMPOSING A BUSINESS AND OCCUPATION TAX AND ADOPTING A NEW CHAPTER 5-25, ENTITLED "BUSINESS AND OCCUPATION TAX CODE". WHEREAS, state law authorizes municipalities to impose a Business and Occupation tax on business activities within the City; and WHEREAS, in 2003, the Legislature passed EHB 2030 (RCW Chapter 35.102), establishing a more uniform system of City business and occupation taxes through mandatory adoption of a model Business and Occupation tax ordinance; and WHEREAS, the Council wishes to adopt a Business and Occupation Tax Code in compliance with RCW Chapter 35.102 and the model ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Title V (Finance and Business Regulations) of the Renton Municipal Code, is hereby amended to add a new Chapter 25, entitled "Business and Occupation Tax Code" to read as follows: CHAPTER 25 BUSINESS AND OCCUPATION TAX CODE SECTION: 5-25-1 Exercise of Revenue License Power 5-25-2 Definitions 5-25-3 Agency - Sales and Services by Agent, Consignee, Bailee, Factor or Auctioneer 1 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 191 of 267 ORDINANCE NO. 5-25-4 Imposition of the Tax - Tax or Fee Levied; Business License Fee Exemption 5-25-5 Multiple Activities Credit When Activities Take Place in One or More Cities With Eligible Gross Receipt Taxes 5-25-6 Deductions to Prevent Multiple Taxation of Manufacturing Activities and Prior to January 1, 2008, Transactions Involving More Than One City With an Eligible Gross Receipts Tax 5-25-7 Assignment of Gross Income Derived From Intangibles 5-25-8 Allocation and Apportionment of Income When Activities Take Place in More Than One Jurisdiction 5-25-9 Allocation and Apportionment of Printing and Publishing Income When Activities Take Place in More Than One Jurisdiction 5-25-10 Exemptions 5-25-11 Deductions 5-25-12 New Business Tax Credit 5-25-13 Tax Part of Overhead 5-25-14 Administrative Provisions 5-25-15 Severability Clause 5-25-1 EXERCISE OF REVENUE LICENSE POWER: The provisions of this chapter shall be deemed an exercise of the power of the City to license for revenue. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests solely with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the City code. 5-25-2 DEFINITIONS: In construing the provisions of this chapter, the following definitions shall be applied. Words in the singular number shall include the plural, and the plural 2 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 192 of 267 ORDINANCE NO. shall include the singular. In the event that a word, term or phrase defined in this section shall conflict with a word, term or phrase as defined in this title, this chapter shall control to the extent of the conflict. A. "Administrator" shall mean the Administrative Services Administrator or designee, unless otherwise specified. JL, "Artistic or cultural organization," as used in this chapter means the following: 1. The organization is organized and operated exclusively for the purpose of providing artistic or cultural exhibitions, presentations, or performances or cultural or art education programs, as defined in subsection 10 of this section, for viewing or attendance by the general public. 2. The organization must be a not-for-profit corporation under RCW Chapter 24.03. 3. The organization must be managed by a governing board of not less than eight (8) individuals none of whom is a paid employee of the organization or by a corporation under RCW Chapter 24.12. 4. No part of its income mav be paid directly or indirectly to its members, stockholders, officers, directors, or trustees except in the form of services rendered by the corporation in accordance with its purposes and bylaws. 3 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 193 of 267 ORDINANCE NO. 5. Salary or compensation paid to its officers and executives must be only for actual services rendered, and at levels comparable to the salary or compensation of like positions within the state. 6. Assets of the corporation must be irrevocably dedicated to the activities for which the exemption is granted and, on the liquidation, dissolution, or abandonment by the corporation, mav not inure directly or indirectly to the benefit of anv member or individual except a non-profit organization, association, or corporation which also would be entitled to the exemption. 7. The corporation must be duly licensed or certified when licensing or certification is required by law or regulation. 8. The amounts received that qualify for exemption must be used for the activities for which the exemption is granted. 9. Services must be available regardless of race, color, national origin, ancestry, religion, age, sex, marital status, sexual orientation, or the presence of any mental or physical disability. 10. The term "artistic or cultural exhibitions, presentations, or performances or cultural or art education programs" is limited to: a. An exhibition or presentation of works of art or objects of cultural or historical significance, such as those commonly displayed in art or history museums: b. A musical or dramatic performance or series of performances: or 4 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 194 of 267 ORDINANCE NO. c. An educational seminar or program, or series of such programs, offered by the organization to the general public on an artistic, cultural, or historical subject. C. "Business" includes all activities engaged in with the purpose of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly. Di "Business and occupation tax" or "gross receipts tax" means a tax imposed on or measured by the value of products, the gross income of the business, or the gross proceeds of sales, as the case may be, and that is the legal liability of the business. L "Commercial or industrial use" means the following uses of products, including by-products, by the extractor or manufacturer of the products: 1. Any use as a consumer; and 2. The manufacturing of products including articles, substances or commodities. F\ "Delivery" means the transfer of possession of tangible personal propertv between the seller and the buyer or the buyer's representative. Delivery to an employee of a buyer is considered delivery to the buyer. Transfer of possession of tangible personal propertv occurs when the buyer or the buyer's representative first takes physical control of the propertv or exercises dominion and control over the property. Dominion and control means the buyer has the ability to possess, use, convey or dispose the propertv as the buyer chooses. It 5 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 195 of 267 ORDINANCE NO. means the buyer or the buyer's representative has made the final decision to accept or reject the propertv, and the seller has no further right to possession of the propertv and the buyer has no right to return the propertv to the seller, other than under a warranty contract. A buyer does not exercise dominion and control over tangible personal propertv merely by arranging for shipment of the propertv from the seller to itself. A buyer's representative is a person, other than an employee of the buyer, who has the buyer's written authorization to receive tangible personal propertv and take dominion and control by making the final decision to accept or reject the property. Neither a shipping company nor a seller can serve as a buyer's representative. It is immaterial where the contract of sale is negotiated or where the buyer obtains title to the property. Delivery terms and other provisions of the Uniform Commercial Code (RCW Title 62A) do not determine when or where delivery of tangible personal propertv occurs for purposes of taxation. (x. "Digital automated service," "digital code," and "digital goods" have the same meaning as in RCW 82.04.192, Digital products definitions. K. "Digital products" means digital goods, digital codes, digital automated services, and the services described in RCW 82.04.050(2)(g) and (6)(b), "Sale at retail," "retail sale." L Eligible gross receipts tax: The term "eligible gross receipts tax" means a tax which: 6 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 196 of 267 ORDINANCE NO. 1. Is imposed on the act or privilege of engaging in business activities within section RMC 5-25-4; and 2. Is measured by the gross volume of business, in terms of gross receipts and is not an income tax or value-added tax (VAT); and 3. Is not, pursuant to law or custom, separately stated from the sales price; and 4. Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax measured by volume or weight, or concession charge, or payment for the use and enjoyment of propertv, property right or a privilege; and 5. Is a tax imposed by a local jurisdiction, whether within or without the State of Washington, and not by a country, state, province, or anv other non- local jurisdiction above the county level. L 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 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 activities so that a person who meets the criteria mav engage in de minimus business activities in the City without having to register and obtain a business license or pay City business and occupation taxes. The activities listed in this section are illustrative 7 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 197 of 267 ORDINANCE NO. 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 person 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 propertv, intangible personal propertv, or real propertv 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 or tangible personal propertv, including warranty work and propertv maintenance. e. Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal propertv sold by the person or on its behalf. f. Installing, constructing, or supervising installation or construction of, real or tangible personal property. 8 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 198 of 267 ORDINANCE NO. g. Soliciting, negotiating, or approving franchise, license, or other similar agreements. h. Collecting current or delinquent accounts. i. Picking up and transporting tangible personal propertv, 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. 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. I. 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. 9 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 199 of 267 ORDINANCE NO. 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 person acting on its behalf. q. Accepting or executing a contract with the City, irrespective of whether goods or services are delivered within or without the City, or whether the person's office or place of business is within or without the City. 4. If a person, or its employee, agent, representative, independent contractor, broker or another person 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 and pay tax: 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 propertv 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. 10 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 200 of 267 ORDINANCE NO. d. Renting tangible or intangible propertv as a customer when the propertv 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 RMC Chapter 5-22, Special Event Permits. 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. The City expressly intends that engaging in business includes anv activity sufficient to establish nexus for purposes of applying the tax 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. "Extracting" is the activity engaged in by an extractor and is reportable underthe extracting classification. L "Extractor" means every person who from that person's land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, for sale or for commercial or industrial use, mines, quarries, takes or 11 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 201 of 267 ORDINANCE NO. produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product; or fells, cuts or takes timber, Christmas trees, other than plantation Christmas trees, or other natural products; or takes fish, shellfish, or other sea or inland water foods or products. "Extractor" does not include persons performing under contract the necessary labor or mechanical services for others; or persons meeting the definition of farmer. M. "Extractor for hire" means a person who performs under contract necessary labor or mechanical services for an extractor. Ni "Gross income of the business" means the value proceeding or accruing by reason of the transaction of the business engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without anv deduction on account of the cost of tangible propertv sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or anv other expense whatsoever paid or accrued and without anv deduction on account of losses. (X "Gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal propertv, digital goods, digital codes, digital automated services or for other services rendered, without anv deduction on account of the cost of propertv sold, the cost of materials used, labor costs, 12 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 202 of 267 ORDINANCE NO. interest, discount paid, delivery costs, taxes, or any other expense paid or accrued and without anv deduction on account of losses. P. "Inflation Adjustment" shall be an amount equal to the amount and direction of change determined by the Settle-Tacoma-Bremerton Urban Wage Earners and Clerical Workers Consumer Price index (CPI-W) for each twelve (12)- month period ending on August 31st as published by the United States Department of Labor. To calculate this adjustment, the current rate will be multiplied by one (1) plus or minus, as the case mav be, the annual change in the CPI-W. Ci "Manufacturing" means the activity conducted by a manufacturer and is reported underthe manufacturing classification. R^ Manufacture, to manufacture: 1. "Manufacturer" means every person who, either directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from the person's own materials or ingredients anv products. When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to less than twenty percent (20%) of the total value of all materials or ingredients that become a part of the finished product, the owner of the equipment or facilities will be deemed to be a processor for hire, and not a manufacturer. A business not located in this City that is the owner of materials 13 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 203 of 267 ORDINANCE NO. or ingredients processed for it in this City by a processor for hire shall be deemed to be engaged in business as a manufacturer in this City. 2. "To manufacture" means all activities of a commercial or industrial nature requiring the use of labor or skill, by hand or machinery, to materials or ingredients resulting in a new, different or useful product for sale or commercial or industrial use, and shall include: a. The production of special made or custom made articles: b. The production of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician: c. Crushing and/or blending of rock, sand, stone, gravel, or ore: and d. The producing of articles for sale, or for commercial or industrial use from raw materials or prepared materials by giving such materials, articles, and substances of trade or commerce new forms, qualities, properties or combinations including, but not limited to, such activities as making, fabricating, processing, refining, mixing, slaughtering, packing, aging, curing, mild curing, preserving, canning, and the preparing and freezing of fresh fruits and vegetables. "To manufacture" shall not include the production of digital goods or the production of computer software if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, 14 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 204 of 267 ORDINANCE NO. including the delivery by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser. S;. "Non-profit organization" means a corporation or organization in which no part of the income can be distributed to its members, directors, or officers and that holds a current tax exempt status as provided under Internal Revenue Code Sec. 501(c)(3), or is specifically exempted from the requirement to apply for tax exempt status under Internal Revenue Code Sec. 501(c)(3). Where the term "non-profit organization" is used, it is meant to include a non-profit corporation. L "Person" means anv individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, co-partnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the State of Washington, corporation, limited liability company, association, society, or anv group of individuals acting as a unit, whether mutual, cooperative, fraternal, non-profit, or otherwise and the United States of America or any of its instrumentalities. LL "Processor for hire" means the performance of labor and mechanical services upon materials or ingredients belonging to others so that as a result a new, different or useful product is produced for sale, or commercial or industrial use. A processor for hire is anv person who would be a manufacturer if that person were performing the labor and mechanical services upon that person's own materials or ingredients. If a person furnishes, or sells to the customer prior 15 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 205 of 267 ORDINANCE NO. to manufacture, materials or ingredients equal to twenty percent (20%) or more of the total value of all materials or ingredients that become part of the finished product the person will be deemed the manufacturer and not a processor for hire. \A "Retailing" means the activity of engaging in making sales at retail and is reported underthe retailing classification. W. "Retail service" shall include the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities: 1. Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, swimming, bungee jumping, ski lifts and tows, basketball, racquet ball, handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others, when provided to consumers. "Amusement and recreation services" also include the provision of related facilities such as basketball courts, tennis courts, handball courts, swimming pools, and charges made for providing the opportunity to dance. The term "amusement and recreation services" does not include instructional lessons to learn a particular activity such as tennis lessons, swimming lessons, or archery lessons. 2. Abstract, title insurance, and escrow services: 3. Credit bureau services: 4. Automobile parking and storage garage services: 16 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 206 of 267 ORDINANCE NO. 5. Landscape maintenance and horticultural services but excluding (a) horticultural services provided to farmers and (b) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility; 6. Service charges associated with tickets to professional sporting events; and 7. The following personal services: Physical fitness services, tanning salon services, tattoo parlor services, steam bath services, Turkish bath services, escort services, and dating services. 8. The term shall also include the renting or leasing of tangible personal propertv to consumers and the rental of equipment with an operator. )C Sale, casual or isolated sale: 1. "Sale" means anv transfer of the ownership of, title to, right to control, or possession of, propertv for a valuable consideration and includes anv activity classified as a "sale at retail," "retail sale," or "retail service." It includes renting or leasing, conditional sale contracts, leases with option to purchase, and anv contract under which possession of the propertv is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price. It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not. 17 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 207 of 267 ORDINANCE NO. 2. "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of propertv involved on a routine or continuous basis. Y. Sale at retail, retail sale: 1. "Sale at retail" or "retail sale" means every sale of tangible personal propertv (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including but not limited to. persons who install, repair, clean, alter, improve, construct, or decorate real or personal propertv of or for consumers, other than a sale to a person who presents a resale certificate under RCW 82.04.470, Wholesale sale - Reseller permit - Exemption certificates - Burden of proof-Tax liability, and who: a. Purchases for the purpose of resale as tangible personal propertv in the regular course of business without intervening use by such person: or b. Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal propertv of or for consumers, if such tangible personal propertv becomes an ingredient or component of such real or personal propertv without intervening use by such person: or c. Purchases for the purpose of consuming the propertv purchased in producing for sale a new article of tangible personal propertv or substance, of which such propertv becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical 18 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 208 of 267 ORDINANCE NO. reaction directly through contact with an ingredient of a new article being produced for sale; or d. Purchases for the purpose of consuming the propertv purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such propertv is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or e. Purchases for the purpose of providing the propertv to consumers as part of competitive telephone service, as defined in RCW 82.04.065. The term shall include every sale of tangible personal propertv which is used or consumed or to be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such propertv is resold or utilized as provided in a through e of this subsection following such use. f. Purchases for the purpose of satisfying the person's obligations under an extended warranty as defined in subsection 7 of this section, if such tangible personal propertv replaces or becomes an ingredient or component of propertv covered bv the extended warranty without intervening use by such person. 2. "Sale at retail" or "retail sale" also means every sale of tangible personal propertv to persons engaged in any business activity which is taxable under this chapter. 19 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 209 of 267 ORDINANCE NO. 3. "Sale at retail" or "retail sale" shall include the sale of or charge made for tangible personal propertv consumed and/or for labor and services rendered in respect to the following: a. The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal propertv of or for consumers, including charges made for the mere use of facilities, but excluding charges made for the use of coin-operated laundry facilities when such facilities are situated in and for the exclusive use of tenants of an apartment house, rooming house, or mobile home park, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects: b. The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real propertv of or for consumers, including the installing or attaching of anv tangible personal propertv, whether or not such personal propertv becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture: c. The charge for labor and services rendered in respect to constructing, repairing, or improving anv structure upon, above, or under anv real propertv owned by an owner who conveys the propertv by title, possession, or any other means to the person performing such construction, repair, or 20 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 210 of 267 ORDINANCE NO. improvement for the purpose of performing such construction, repair, or improvement and the propertv is then reconveved bv title, possession, or anv other means to the original owner; d. The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services; and for purposes of this section the term "janitorial services" shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term "janitorial services" does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting; e. The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under RCW Chapter 82.16, Public Utility Tax; f. The sale of and charge made for the furnishing of lodging and all other services, except telephone business and cable service, by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real propertv, as distinguished from the renting or leasing of real propertv, and it shall be presumed that the occupancy of real propertv for a continuous period of one (1) month or more constitutes a rental or lease of real 21 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 211 of 267 ORDINANCE NO. propertv and not a mere license to use or enjoy the same. For the purposes of this subsection, it shall be presumed that the sale of and charge made for the furnishing of lodging for a continuous period of one (1) month or more to a person is a rental or lease of real propertv and not a mere license to enjoy the same; g. The installing, repairing, altering, or improving of digital goods for consumers; h. The sale of or charge made for tangible personal propertv, labor and services to persons taxable under a through g of this subsection when such sales or charges are for propertv, labor and services which are used or consumed in whole or in part by such persons in the performance of anv activity defined as a "sale at retail" or "retail sale" even though such propertv, labor and services mav be resold after such use or consumption. Nothing contained in this subsection shall be construed to modify subsection 1 of this section and nothing contained in subsection 1 of this section shall be construed to modify this subsection. 4. "Sale at retail" or "retail sale" shall also include the providing of competitive telephone service to consumers. 5. "Sale at retail" or "retail sale": a. shall also include the sale of prewritten software other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user. For purposes of this subsection 5.a the 22 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 212 of 267 ORDINANCE NO. sale of prewritten computer software includes the sale of or charge made for a key or an enabling or activation code, where the key or code is required to activate prewritten computer software and use the software. There is no separate sale of the key or code from the prewritten computer software, regardless of how the sale may characterized by the vendor or by the purchaser. The term "sale at retail" or "retail sale" does not include the sale of or charge made for: i. Custom software: or ii. The customization of prewritten software- fa, i. The term also includes the charge made to consumers for the right to access and use prewritten computer software, where possession of the software is maintained bv the seller or a third-party, regardless of whether the charge for the service is on a per use, per user, per license, subscription, or some other basis. ii. (a) The service described in b.i of this subsection 5 includes the right to access and use prewritten software to perform data processing. (b) For purposes of this subsection b.ii "data processing" means the systematic performance of operations on data to extract the required information in an appropriate form or to convert the data to usable information. Data processing includes check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities. 23 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 213 of 267 ORDINANCE NO. 6. "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of anv street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state, the State of Washington, or the United States of America and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of anv kind (public road construction). 7. "Sale at retail" or "retail sale" shall also include the sale of or charge made for an extended warranty to a consumer. For purposes of this subsection, "extended warranty" means an agreement for a specified duration to perform the replacement or repair of tangible personal propertv at no additional charge or a reduced charge for tangible personal propertv, labor, or both, or to provide indemnification for the replacement or repair of tangible personal propertv, based on the occurrence of specified events. The term "extended warranty" does not include an agreement, otherwise meeting the definition of extended warranty in this subsection, if no separate charge is made for the agreement and the value of the agreement is included in the sales price of the tangible personal propertv covered by the agreement. 8. "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, 24 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 214 of 267 ORDINANCE NO. upon, or above real propertv of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to RCW Chapter 35.82, including the installing, or attaching of anv article of tangible personal propertv, whether or not such personal propertv becomes a part of the real propertv by virtue of installation (government contracting). 9. "Sale at retail" or "retail sale" shall not include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States of America, or anv of its instrumentality, or a county or city housing authority. The term does not include the sale of services or charges made for cleaning up for the United States of America, or anv of its instrumentalities, radioactive waste and other byproducts of weapons production and nuclear research and development. (This should be reported under the service and other classification as defined under 5-25-4.A.7.) 10. "Sale at retail" or "retail sale" shall not include the sale of or charge made for labor and services rendered for environmental remedial action. (This should be reported under the service and other classification as defined under 5- 25-4.A.7.) 11. "Sale at retail" or "retail sale" shall also include the following sales to consumers of digital goods, digital codes, and digital automated services: a. Sales in which the seller has granted the purchaser the right of permanent use: 25 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 215 of 267 ORDINANCE NO. b. Sales in which the seller has granted the purchaser a right of use that is less than permanent; c. Sales in which the purchaser is not obligated to make continued payment as a condition of the sale; and d. Sales in which the purchaser is obligated to make continued payment as a condition of the sale. A retail sale of digital goods, digital codes, or digital automated services under this subsection Y.ll includes any services provided by the seller exclusively in connection with the digital goods, digital codes, or digital automated services, whether or not a separate charge is made for such services. For purposes of this subsection, "permanent" means perpetual or for an indefinite or unspecified length of time. A right of permanent use is presumed to have been granted unless the agreement between the seller and the purchaser specifies or the circumstances surrounding the transaction suggest or indicate that the right to use terminates on the occurrence of a condition subsequent. 12. "Sale at retail" or "retail sale" shall also include the installing, repairing, altering, or improving of digital goods for consumers. Z. Sale at wholesale, wholesale sale. "Sale at wholesale" or "wholesale sale" means anv sale of tangible personal propertv, digital goods, digital codes, digital automated services, prewritten computer software, or services described in subsection Y.5.b.i, "Sale at retail", 26 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 216 of 267 ORDINANCE NO. which is not a retail sale, and any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal propertv and retail services, if such charge is expressly defined as a retail sale or retail service when rendered to or for consumers. Sale at wholesale also includes the sale of telephone business to another telecommunications company as defined in RCW 80.04.010 for the purpose of resale, as contemplated by RCW 35.21.715, Taxes on network telephone services. AA. "Service" means anv sale or charge made for personal, business or professional service, including amounts designated as rents, fees, or admissions, not otherwise included within any other tax classification defined herein; provided that, the term "service" excludes retail or wholesale services. BB. "Taxpayer" means anv "person", as defined in subsection T, required to have a business license under this chapter or liable for the collection of any tax or fee under this chapter, or who engages in any business or who performs anv act for which a tax or fee is imposed by this chapter. CC. "Value proceeding or accruing" means the consideration, whether money, credits, rights, or other propertv expressed in terms of money, a person is entitled to receive or which is actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. DP. Value of products: 27 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 217 of 267 ORDINANCE NO. 1. The value of products, including by-products, extracted or manufactured, shall be determined by the gross proceeds derived from the sale of those products, whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from anv other person with respect to the extraction, manufacture, or sale of such products or by-products bv the seller. 2. Where such products, including by-products, are extracted or manufactured for commercial or industrial use; and where such products, including by-products, are shipped, transported or transferred out of the City, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale; the value shall correspond as nearly as possible to the gross proceeds from sales in this state of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by anv third person with respect to the extraction, manufacture, or sale of such products. In the absence of sales of similar products as a guide to value, such value mav be determined upon a cost basis. In such cases, there shall be included every item of cost attributable to the particular article or article extracted or manufactured, including direct and indirect overhead costs. The Administrator mav prescribe rules for the purpose of ascertaining such values. 28 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 218 of 267 ORDINANCE NO. 3. Notwithstanding subsection 2 above, the value of a product manufactured or produced for purposes of serving as a prototype for the development of a new or improved product shall correspond to (a) the retail selling price of such new or improved product when first offered for sale; or (b) the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale- EE. "Wholesaling" means engaging in the activity of making sales at wholesale, and is reported under the wholesaling classification. 5-25-3 AGENCY - SALES AND SERVICES BY AGENT. CONSIGNEE, BAILEE. FACTOR OR AUCTIONEER: A. Sales in Own Name - Sales or Purchases as Agent: Consistent with RCW 82.04.480, every person, including agents, consignees, bailees, factors or auctioneers having either actual or constructive possession of tangible personal propertv or having possession of the documents of title, with power to sell such tangible personal propertv in the person's own name and actually so selling, shall be deemed the seller of such tangible personal propertv within the meaning of this chapter. Furthermore, the consignor, bailor, principal, or owner is deemed a seller of such propertv to the consignee, bailee, factor, or auctioneer. The burden shall be solely upon the taxpayer in every case to establish the fact that such taxpayer is not engaged in the business of selling tangible personal propertv but is acting merely as broker or agent in promoting sales or making purchases for a principal. Such claim will be recognized only when the contract or 29 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 219 of 267 ORDINANCE NO. agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions are complied with: 1. The books and records of the broker or agent show the transactions were made in the name and for the account of the principal, and show the name of the actual owner of the property for whom the sale was made, or the actual buyer for whom the purchase was made. 2. The books and records show the amount of the principal's gross sales, the amount of commissions and anv other incidental income derived by the broker or agent from such sales. The principal's gross sales must not be reflected as the agent's income on any of the agent's books and records. Commissions must be computed according to a set percentage or amount, which is agreed upon in the agency agreement. 3. No ownership rights may be conferred to the agent unless the principal refuses to pay, or refuses to abide by the agency agreement. Sales or purchases of anv goods by a person who has anv ownership rights in such goods shall be taxed as retail or wholesale sales. 4. Bulk goods sold or purchased on behalf of a principal must not be comingled with goods belonging to another principal or lose their identity as belonging to the particular principal. Sales or purchases of any goods which have been comingled or lost their identity as belonging to the principal shall be taxed as retail or wholesale sales. 30 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 220 of 267 ORDINANCE NO. B. If the above requirements are not met the consignor, bailor, principal or other shall be deemed a seller of such propertv to the agent, consignee, bailee, factor or auctioneer. C. Services in Own Name - Procuring Services as Agent: For purposes of this subsection, an agent is a person who acts under the direction and control of the principal in procuring services on behalf of the principal that the person could not itself render or supply. Amounts received by an agent for the account of its principal as advances or reimbursements are exempted from the measure of the tax only when the agent is not primarily or secondarily liable to pay for the services procured. Any person who claims to be acting merely as agent in obtaining services for a principal will have such claim recognized only when the contract or agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions are complied with: 1. The books and records of the agent show that the services were obtained in the name and for the account of the principal, and show the actual principal for whom the purchase was made. 2. The books and records show the amount of the service that was obtained for the principal, the amount of commissions and any other income derived bv the agent for acting as such. Amounts received from the principal as advances and reimbursements must not be reflected as the agent's income on anv 31 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 221 of 267 ORDINANCE NO. of the agent's books and records. Commissions must be computed according to a set percentage or amount, which is agreed upon in the agency agreement. D. A consignee, bailee, factor, agent or auctioneer, as used in this section, refers to one who has either actual or constructive possession of tangible personal property, the actual ownership of such property being in another, or one calling for bids on such property. The term "constructive possession" means possession of the power to pass title to tangible personal propertv of others. 5-25-4 IMPOSITION OF THE TAX - TAX OR FEE LEVIED; BUSINESS LICENSE FEE EXEMPTION: A. Except as provided in RMC 5-25-4.C (Tax Thresholds) and 5-25-4.D (Amounts in Excess of Cap), effective January 1, 2016 at 12:01 a.m. there is levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities in the City of Renton, whether the person's office or place of business be within or without the City. The tax shall be in amounts to be determined by application of rates against gross proceeds of sale, gross income of business, or value of products, including by-products, as the case mav be, as follows: 1. Upon every person engaging within the City in business as an extractor; as to such persons, the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, extracted within the City for sale or for commercial or industrial use, multiplied by the rate of .085 of one percent (.00085). The measure of the tax is the value 32 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 222 of 267 ORDINANCE NO. of the products, including by-products, so extracted, regardless of the place of sale or the fact that deliveries mav be made to points outside the City. 2. Upon every person engaging within the City in business as a manufacturer; as to such persons, the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, manufactured within the City, multiplied bv the rate of .085 of one percent (.00085). The measure of the tax is the value of the products, including by- products, so manufactured, regardless of the place of sale or the fact that deliveries mav be made to points outside the City. 3. Upon every person engaging within the City in the business of making sales at wholesale; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of .085 of one percent (.00085). 4. Upon every person engaging within the City in the business of making sales at retail; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business, without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of .050 of one percent (.00050). 5. Upon every person engaging within the City in the business of (a) printing, (b) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (c) publishing newspapers, magazines and 33 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 223 of 267 ORDINANCE NO. periodicals, (d) extracting for hire, and (e) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of .085 of one percent (.00085). 6. Upon every person engaging within the City in the business of sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of .085 of one percent (.00085). 7. Upon every other person engaging within the City in anv business activity other than or in addition to those enumerated in the above subsections; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of .085 of one percent (.00085). This subsection includes, among others, and without limitation whether or not title to material used in the performance of such business passes to another by accession, merger or other than by outright sale, persons engaged in the business of developing, or producing custom software or of customizing canned software, producing royalties or commissions, and persons engaged in the business of rendering any type of service which does not constitute a sale at retail, a sale at wholesale, or a retail service. B. Limitation of the Tax Rate Adjustment: The rates in subsection A above shall not be increased by more than the Inflation Adjustment in any given year. C. Tax Thresholds: This chapter shall not apply to any person engaging in anv one (1) or more business activities which are otherwise taxable pursuant to 34 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 224 of 267 ORDINANCE NO. RMC 5-25-4.A, whose value of products, including by-products, gross proceeds of sales, and gross income of the business, as the case mav be, from all activities conducted within the City during anv calendar year, is less than or equal to the threshold amount of one million five hundred thousand dollars ($1,500,000). D. Amounts in Excess of Cap: This chapter shall not apply to that portion of the gross proceeds of sales, gross income of the business, and value of products, including by-products, from all activities conducted within the City, less applicable deductions and other exemptions, that are in excess of five billion dollars ($5,000,000,000) during any calendar year. The cap set forth in this subsection shall be administratively adjusted by the Administrator on January 1st of each year, beginning on January 1, 2017, to reflect the inflation adjustment, as defined and calculated pursuant to RMC 5-25-2.P. The amount of the cap so calculated shall be rounded to the nearest five thousand dollars ($5,000). E. Business License Fee Exemption: Anv business subject to payment of a tax imposed pursuant to RMC 5-25 (Business and Occupation Tax Code) shall be exempt from the payment of the per employee business license fees. 5-25-5 MULTIPLE ACTIVITIES CREDIT WHEN ACTIVITIES TAKE PLACE IN ONE OR MORE CITIES WITH ELIGIBLE GROSS RECEIPT TAXES: A. Persons who engage in business activities that are within the purview of two (2) or more subsections of RMC 5-25-4.A shall be taxable under each applicable subsection. 35 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 225 of 267 ORDINANCE NO. B. Notwithstanding any provision to the contrary, if the Administrator finds that the imposition of the City's tax would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit to the extent necessary to preserve the validity of the City's tax, and still apply the City tax to as much of the taxpayer's activities as may be subject to the City's taxing authority. C. To take the credit authorized by this section, a taxpayer must be able to document that the amount of tax sought to be credited was paid upon the same gross receipts used in computing the tax against which the credit is applied. D. Credit for Persons That Sell in the City Products That They Extract or Manufacture. Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid (1) with respect to the manufacturing of the products sold in the City, and (2) with respect to the extracting of the products, or the ingredients used in the products, sold in the City. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. E. Credit for persons that manufacture products in the City using ingredients they extract. Persons taxable under the manufacturing classification with respect to manufacturing products in this City shall be allowed a credit against those taxes for any eligible gross receipts tax paid with respect to extracting the ingredients of the products manufactured in the City. The amount 36 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 226 of 267 ORDINANCE NO. of the credit shall not exceed the tax liability arising under this chapter with respect to the manufacturing of those products. F. Credit for persons that sell within the City products that they print, or publish and print. Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for anv eligible gross receipts taxes paid with respect to the printing, or the printing and publishing, of the products sold within the City. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. 5-25-6 DEDUCTIONS TO PREVENT MULTIPLE TAXATION OF MANUFACTURING ACTIVITIES AND PRIOR TO JANUARY 1. 2008. TRANSACTIONS INVOLVING MORE THAN ONE CITY WITH AN ELIGIBLE GROSS RECEIPTS TAX: A. Amounts Subject to an Eligible Gross Receipts Tax in Another City That Also Maintains Nexus Over the Same Activity: For taxes due prior to January 1, 2008, a taxpayer that is subject to an eligible gross receipts tax on the same activity in more than one (1) jurisdiction mav be entitled to a deduction as follows: 1. A taxpayer that has paid an eligible gross receipts tax, with respect to a sale of goods or services, to a jurisdiction in which the goods are delivered or the services are provided mav deduct an amount equal to the gross receipts used to measure that tax from the measure of the tax owed to the City. 37 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 227 of 267 ORDINANCE NO. 2. Notwithstanding the above, a person that is subject to an eligible gross receipts tax in more than one (1) jurisdiction on the gross income derived from intangibles such as royalties, trademarks, patents, or goodwill shall assign those gross receipts to the jurisdiction where the person is domiciled (its headquarters is located). 3. A taxpayer that has paid an eligible gross receipts tax on the privilege of accepting or executing a contract with another city mav deduct an amount equal to the contract price used to measure the tax due to the other city from the measure of the tax owed to the City. B. Person Manufacturing Products Within and Without: A person manufacturing products within the City using products manufactured by the same person outside the City mav deduct from the measure of the manufacturing tax the value of products manufactured outside the City and included in the measure of an eligible gross receipts tax paid to the other jurisdiction with respect to manufacturing such products. 5-25-7 ASSIGNMENT OF GROSS INCOME DERIVED FROM INTANGIBLES: Gross income derived from the sale of intangibles such as royalties, trademarks, patents, or goodwill shall be assigned to the jurisdiction where the person is domiciled (its headquarters is located). 5-25-8 ALLOCATION AND APPORTIONMENT OF INCOME WHEN ACTIVITIES TAKE PLACE IN MORE THAN ONE JURISDICTION: 38 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 228 of 267 ORDINANCE NO. Gross income, other than persons subject to the provisions of RCW Chapter 82.14A, shall be allocated and apportioned as follows: A. Gross income derived from all activities other than those taxed as service or royalties under RMC 5-25-4.A.7 shall be allocated to the location where the activity takes place. B. In the case of sales of tangible personal propertv, the activity takes place where delivery to the buyer occurs. C. In the case of sales of digital products, the activity takes place where delivery to the buyer occurs. The delivery of digital products will be deemed to occur at: 1. The seller's place of business if the purchaser receives the digital product at the seller's place of business: 2. If not received at the seller's place of business, the location where the purchaser or the purchaser's donee, designated as such by the purchaser, receives the digital product, including the location indicated by instructions for delivery to the purchaser or donee, known to the seller: 3. If the location where the purchaser or the purchaser's donee receives the digital product is not known, the purchaser's address maintained in the ordinary course of the seller's business when use of this address does not constitute bad faith: 4. If no address for the purchaser is maintained in the ordinary course of the seller's business, the purchaser's address obtained during the consummation 39 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 229 of 267 ORDINANCE NO. of the sale, including the address of a purchaser's payment instrument, if no other address is available, when use of this address does not constitute bad faith; and 5. If no address for the purchaser is obtained during the consummation of the sale, the address where the digital good or digital code is first made available for transmission by the seller or the address from which the digital automated service or service described in RCW 82.04.050 (2)(g) or (6)(b) was provided, disregarding for these purposes anv location that merely provided the digital transfer of the product sold. D. If none of the methods in RMC 5-25-8.C for determining where the delivery of digital products occurs are available after a good faith effort by the taxpayer to apply the methods provided in RMC 5-25-8.C.1 through 5, then the City and the taxpayer mav mutually agree to employ any other method to effectuate an equitable allocation of income from the sale of digital products. The taxpayer will be responsible for petitioning the City to use an alternative method under RMC 5-25-8.D. The City mav employ an alternative method for allocating the income from the sale of digital products if the methods provided in RMC 5-25-8.C.1 through 5 are not available and the taxpayer and the City are unable to mutually agree on an alternative method to effectuate an equitable allocation of income from the sale of digital products. E. For purposes of RMC 5-25-8.C.1 through 5, "Receive" has the same meaning as in RCW 82.32.730. 40 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 230 of 267 ORDINANCE NO. F. Gross income derived from activities taxed as services and other activities taxed under RMC 5-25-4.A.7 shall be apportioned to the City by multiplying apportionable income by a fraction, the numerator of which is the payroll factor plus the service-income factor and the denominator of which is two (2). 1. The payroll factor is a fraction, the numerator of which is the total amount paid in the City during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period. Compensation is paid in the City if: a. The individual is primarily assigned within the City; b. The individual is not primarily assigned to any place of business for the tax period and the employee performs fifty percent (50%) or more of his or her service for the tax period in the City; or c. The individual is not primarily assigned to any place of business for the tax period, the individual does not perform fifty percent (50%)or more of his or her service in any city and the employee resides in the City. 2. The service income factor is a fraction, the numerator of which is the total service income of the taxpayer in the City during the tax period, and the denominator of which is the total service income of the taxpayer everywhere during the tax period. Service income is in the City if: a. The customer location is in the City; or b. The income-producing activity is performed in more than one (1) location and a greater proportion of the service-income-producing activity is 41 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 231 of 267 ORDINANCE NO. performed in the City than in any other location, based on costs of performance, and the taxpayer is not taxable at the customer location; or c. The service-income-producing activity is performed within the City, and the taxpayer is not taxable in the customer location. 3. If the allocation and apportionment provisions of this subsection do not fairly represent the extent of the taxpayer's business activity in the City or cities in which the taxpayer does business, the taxpayer mav petition for or the tax administrators mav jointly require, in respect to all or anv part of the taxpayer's business activity, that one (1) of the following methods be used jointly by the cities to allocate or apportion gross income, if reasonable: a. Separate accounting; b. The use of a single factor; c. The inclusion of one (1) or more additional factors that will fairly represent the taxpayer's business activity in the City; or d. The employment of anv other method to effectuate an equitable allocation and apportionment of the taxpayer's income. G. The definitions in this subsection apply throughout this section: 1. "Apportionable income" means the gross income of the business taxable under the service classifications of a city's gross receipts tax, including income received from activities outside the City if the income would be taxable under the service classification if received from activities within the City, less anv exemptions or deductions available. 42 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 232 of 267 ORDINANCE NO. 2. "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to individuals for personal services that are or would be included in the individual's gross income under the federal internal revenue code. 3. "Individual" means any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer. 4. "Customer location" means the city or unincorporated area of a county where the majority of the contacts between the taxpayer and the customer take place- s' "Primarily assigned" means the business location of the taxpayer where the individual performs his or her duties. 6. "Service-taxable income" or "service income" means gross income of the business subject to tax under either the service or royalty classification. 7. "Tax period" means the calendar year during which tax liability is accrued. If taxes are reported by a taxpayer on a basis more frequent than once per year, taxpayers shall calculate the factors for the previous calendar year for reporting in the current calendar year and correct the reporting for the previous year when the factors are calculated for that year, but not later than the end of the first quarter of the following year. 8. "Taxable in the customer location" means either that a taxpayer is subject to a gross receipts tax in the customer location for the privilege of doing 43 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 233 of 267 ORDINANCE NO. business, or that the government where the customer is located has the authority to subject the taxpayer to gross receipts tax regardless of whether, in fact, the government does so. H. Assignment or apportionment of revenue under this section shall be made in accordance with and in full compliance with the provisions of the interstate commerce clause of the United States Constitution where applicable. 5-25-9 ALLOCATION AND APPORTIONMENT OF PRINTING AND PUBUSHING INCOME WHEN ACTIVITIES TAKE PLACE IN MORE THAN ONE JURISDICTION: Notwithstanding RCW 35.102.130, effective January 1, 2008, gross income from the activities of printing, and of publishing newspapers, periodicals, or magazines, shall be allocated to the principal place in this state from which the taxpayer's business is directed or managed. As used in this section, the activities of printing, and of publishing newspapers, periodicals, or magazines, have the same meanings as attributed to those terms in RCW 82.04.280(1) by the Department of Revenue. 5-25-10 EXEMPTIONS: A. Adult Family Homes: This chapter does not apply to adult family homes which are licensed as such, or which are specifically exempt from licensing, under rules of the Washington State Department of Social and Health Services. B. Day Care Provided By Churches: This chapter shall not apply to amounts derived by a church that is exempt from propertv tax under RCW 84.36.020 from the provision of care for children for periods of less than twenty-four (24) hours. 44 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 234 of 267 ORDINANCE NO. C. Child Care Resource and Referral Services by Nonprofit Organizations: This chapter does not apply to nonprofit organizations in respect to amounts derived from the provision of child-care resource and referral services. D. Non-Profit Organizations That are Guarantee Agencies, Issue Debt, or Provide Guarantees for Student Loans: This chapter does not apply to gross income received by non-profit organizations exempt from federal income tax under Internal Revenue Code Section 501(c)(3), that: 1. Are guarantee agencies under the federal guaranteed student loan program or that issue debt to provide or acquire student loans; or 2. Provide guarantees for student loans made through programs other than the federal guaranteed student loan program. E. Nonprofit Organizations—Credit and Debt Services: This chapter does not apply to nonprofit organizations in respect to amounts derived from provision of the following services: 1. Presenting individual and community credit education programs including credit and debt counseling; 2. Obtaining creditor cooperation allowing a debtor to repay debt in an orderly manner; 3. Establishing and administering negotiated repayment programs for debtors; or 4. Providing advice or assistance to a debtor with regard to 1. 2, or 3, above, of this subsection E. 45 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 235 of 267 ORDINANCE NO. F. Certain fraternal and beneficiary organizations: This chapter shall not apply to fraternal benefit societies or fraternal fire insurance associations, as described in Title 48 RCW; nor to beneficiary corporations or societies organized under and existing by virtue of RCW Title 24, if such beneficiary corporations or societies provide in their bylaws for the payment of death benefits. This exemption is limited, however, to gross income from premiums, fees, assessments, dues or other charges directly attributable to the insurance or death benefits provided by such societies, associations, or corporations. G. Certain Corporations Furnishing Aid and Relief: This chapter shall not apply to the gross sales or the gross income received by corporations which have been incorporated under any act of the congress of the United States of America and whose principal purposes are to furnish volunteer aid to the United States of America armed force members and also to carry on a system of national and international relief and to apply the same in mitigating the sufferings caused by pestilence, famine, fire, floods, and other national calamities and to devise and carry on measures for preventing the same. H. Operation of Sheltered Workshops: This chapter shall not apply to income received from the Department of Social and Health Services for the cost of care, maintenance, support and training of persons with developmental disabilities at nonprofit group training homes as defined by RCW Chapter 71A.22 or to the business activities of nonprofit organizations from the operation of sheltered workshops. For the purposes of this subsection, RMC 5-25-lO.H, "the operation of 46 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 236 of 267 ORDINANCE NO. sheltered workshops" means performance of business activities of any kind on or off the premises of such nonprofit organizations which are performed for the primary purpose of: 1. Providing gainful employment or rehabilitation services to the handicapped or disabled as an interim step in the rehabilitation process for those who cannot be readily absorbed in the competitive labor market or during such time as employment opportunities for them in the competitive labor market do not exist: or 2. Providing evaluation and work adjustment services for handicapped or disabled individuals. I. Investments—Dividends From Subsidiary Corporations: This chapter shall not apply to amounts derived by persons, other than those engaging in banking, loan, security or other financial businesses, from investments or the use of money as such, and also amounts derived as dividends bv a parent from its subsidiary corporations. J. United States, Washington State governmental entities: The City of Renton is exempt from the tax levied by this chapter. K. Gross Receipts Taxed Under Other Renton Municipal Code (RMC) Sections: This chapter shall not apply to: 1. Anv person in respect to a business activity with respect to which tax liability is specifically imposed under the provisions of RMC Chapter 5-11 (Utility Tax); or 47 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 237 of 267 ORDINANCE NO. 2. Any bona fide charitable or nonprofit organization, as defined in RCW 9.46.0209, subject to a tax pursuant to RMC 5-8-5 (bona fide charitable or nonprofit organization gambling activity, bingo, raffle and fundraising activities; pulltabs and punchboards; card games; and, amusement games). L Credit Unions: This chapter shall not apply to the gross income of credit unions organized under the laws of this state, anv other state, or the United States. M. International Banking Facilities: This chapter shall not apply to the gross receipts of an international banking facility. As used in this subsection, RMC 5-25- 10.M, an "international banking facility" means a facility represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this state, and which is incorporated and doing business under the laws of the United States of America or of this state, a United States branch or agency of a foreign bank, an Edge corporation organized under Section 25(A) of the Federal Reserve Act, 12 United States Code 611-631, or an Agreement corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under Section 25 of the Federal Reserve Act, 12 United States Code 11 601-604(a), that includes only international banking facility time deposits (as defined in subsection (a)(2) of Section 204.8 of Regulation D (12 CFR Part 204), as promulgated by the Board of Governors of the Federal Reserve System), and international banking facility extensions of credit (as defined in subsection (a)(3) of Section 204.8 of Regulation D). 48 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 238 of 267 ORDINANCE NO. N. Insurance Business: This chapter shall not apply to amounts received by any person who is an insurer or their appointed insurance producer upon which a tax based on gross premiums is paid to the state pursuant to RCW 48.14.020, and provided further, that the provisions of this subsection shall not exempt anv bonding company from tax with respect to gross income derived from the completion of anv contract as to which it is a surety, or as to anv liability as successor to the liability of the defaulting contractor. 0. Farmers - Agriculture: This chapter shall not apply to anv farmer in respect to amounts received from selling fruits, vegetables, berries, butter, eggs, fish, milk poultry, meats or any other agricultural product that is raised, caught, produced or manufactured by such persons. "Agricultural product" does not include animals intended to be pets, marijuana, or marijuana infused products as defined by RCW 69.50.101(t) and (x). "Farmer" does not include any person engaged in the business of growing, producing, processing, selling or distributing marijuana. P. Athletic Exhibitions: This chapter shall not apply to anv person in respect to the business of conducting boxing contests and sparring or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Boxing Commission. Q. Racing: This chapter shall not apply to any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the Washington State Horse Racing Commission. 49 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 239 of 267 ORDINANCE NO. R. Ride Sharing: This chapter does not apply to any funds received in the course of commuter ride sharing or ride sharing for persons with special transportation needs in accordance with RCW 46.74.010. S. Employees: This chapter shall not apply to anv person in respect to his or her employment in the capacity as an employee or servant as distinguished from that of an independent contractor. For the purposes of this subsection, RMC 5-25- 10.S the definition of employee shall include those persons that are defined in section 3121(d)(3)(B) of the Internal Revenue Code, as hereafter amended. For purposes of this chapter, a booth renter, as defined by RCW 18.16.020, is an independent contractor. T. Amounts Derived from Sale of Real Estate: This chapter shall not apply to gross proceeds derived from the sale of real estate. This, however, shall not be construed to allow an exemption of amounts received as commissions from the sale of real estate, nor as fees, handling charges, discounts, interest or similar financial charges resulting from, or relating to, real estate transactions. This chapter shall also not apply to amounts received for the rental of real estate if the rental income is derived from a contract to rent for a continuous period of thirty (30) calendar days or longer. U. Mortgage Brokers7 Third-Party Provider Services Trust Accounts: This chapter shall not apply to amounts received from trust accounts to mortgage brokers for the payment of third-party costs if the accounts are operated in a 50 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 240 of 267 ORDINANCE NO. manner consistent with RCW 19.146.050 and any rules adopted by the director of financial institutions. V. Amounts Derived From Manufacturing, Selling or Distributing Motor Vehicle Fuel: This chapter shall not apply to the manufacturing, selling or distributing motor vehicle fuel, as the term "motor vehicle fuel" is defined in RCW 82.36.010 and exempted under RCW 82.36.440, provided that anv fuel not subjected to the state fuel excise tax, or anv other applicable deduction or exemption, will be taxable under this chapter. W. Amounts Derived From Liquor, and the Sale or Distribution of Liquor: This chapter shall not apply to liquor as defined in RCW 66.04.010 and exempted in RCW 66.08.120. X. Casual and Isolated Sales: This chapter shall not apply to the gross proceeds derived from casual or isolated sales. Y. Accommodation Sales: This chapter shall not apply to sales for resale bv persons regularly engaged in the business of making retail sales of the type of propertv so sold to other persons similarly engaged in the business of selling such propertv where: 1. The amount paid by the buyer does not exceed the amount paid by the seller to his vendor in the acquisition of the article: and 2. The sale is made as an accommodation to the buyer to enable the buyer to fill a bona fide existing order of a customer or is made within fourteen (14) 51 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 241 of 267 ORDINANCE NO. calendar days to reimburse in kind a previous accommodation sale by the buyer to the seller- Provided, that where the seller holds himself or herself out as being regularly engaged in the business of making sales at wholesale of such propertv, such sales shall be included in his principal business activity, and not exempt from tax. Z. Real Estate Brokers and Associated Brokers, Agents, or Salesmen: This chapter does not apply to that portion of a real estate commission assigned to another brokerage office pursuant to the division of revenue between the originating brokerage office and a cooperating brokerage office on a particular transaction. Each brokerage office shall pay the tax upon its respective revenue share of the transaction. Furthermore, where a brokerage office has paid the business license tax on the gross commission earned by that brokerage office, associate brokers, salesmen or agents within the same office shall not be required to pay the tax upon their share of the commission from the same transaction. AA. Taxes Collected as Trust Funds: This chapter shall not apply to amounts collected by the taxpayer from third-parties to satisfy third party obligations to pay taxes such as the retail sales tax, use tax, commercial parking tax, and admission tax. AB. Health Maintenance Organization, Health Care Service Contractor, Certified Health Plan: This chapter does not apply to anv health maintenance 52 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 242 of 267 ORDINANCE NO. organization, health care service contractor, or certified health plan with respect to premiums or prepayments that are taxable under RCW 48.14.0201. AC. Certain Commercial Airplane Parts: This chapter does not apply to the sale of certain parts to a manufacturer of a commercial airplane that are not taxable under RCW 82.04.627(1). "Commercial airplane" has the same meaning given in RCW 82.32.550. 5-25-11 DEDUCTIONS: In computing the license fee or tax, there mav be deducted from the measure of tax the following items: A. Membership Fees and Certain Service Fees By Non-Profit Youth Organization: For purposes of this subsection, "non-profit youth organization" means a non-profit organization engaged in character building of youth which is exempt from propertv tax under RCW 84.36.030. In computing tax due under this chapter, there mav be deducted from the measure of tax all amounts received by a non-profit youth organization: 1. As membership fees or dues, irrespective of the fact that the payment of the membership fees or dues to the organization mav entitle its members, in addition to other rights or privileges, to receive services from the organization or to use the organization's facilities: or 2. From members of the organization for camping and recreational services provided by the organization or for the use of the organization's camping and recreational facilities. 53 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 243 of 267 ORDINANCE NO. B. Fees, Dues, Charges: In computing tax, there mav be deducted from the measure of tax amounts derived from bona-fide: 1. Initiation fees; 2. Dues; 3. Contributions; 4. Donations; 5. Tuition fees; 6. Charges made by a non-profit trade or professional organization for attending or occupying space at a trade show, convention, or educational seminar sponsored by the non-profit trade or professional organization, which trade show, convention, or educational seminar is not open to the general public; 7. Charges made for operation of privately operated kindergartens; and 8. Endowment funds. This subsection shall not be construed to exempt any person, association, or society from tax liability upon selling tangible personal propertv or upon providing facilities or services for which a special charge is made to members or others. If dues are in exchange for any significant amount of goods or services rendered by the recipient to members without anv additional charge to the member, or if the dues are graduated upon the amount of goods or services rendered, the value of such goods or services shall not be considered as a deduction under this subsection. 54 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 244 of 267 ORDINANCE NO. C. Artistic and Cultural Organizations - Income From Business Activities: In computing tax, there mav be deducted from the measure of tax those amounts received bv artistic or cultural organizations, as defined in this chapter, which represent: 1. Income derived from business activities conducted by the organization, provided that this deduction does not apply to retail sales made by artistic and cultural organizations: 2. Amounts received from the United States of America or any of its instrumentalities or from the State of Washington or anv municipal corporation or subdivision thereof as compensation for: or to support, artistic or cultural exhibitions, performances, or programs provided by an artistic or cultural organization for attendance or viewing by the general public: or 3. Amounts received as tuition charges collected for the privilege of attending artistic or cultural education programs. D. Artistic or Cultural Organization - Deduction For Tax Under the Manufacturing Classification - Value of Articles For Use In Displaying Art Objects or Presenting Artistic or Cultural Exhibitions, Performances, or Programs: In computing tax, there mav be deducted from the measure of tax by persons subject to payment of the tax under the manufacturing classification, the value of articles to the extent manufacturing activities are undertaken by an artistic or cultural organization, as defined in this chapter, solely for the purpose of manufacturing articles for use bv the organization in displaying art objects or 55 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 245 of 267 ORDINANCE NO. presenting artistic or cultural exhibitions, performances, or programs for attendance or viewing by the general public. E. Day Care Activities: In computing tax, there may be deducted from the measure of tax amounts derived from day care activities bv anv organization organized and operated for charitable, educational, or other purposes which is exempt from taxation pursuant to Internal Revenue Code Section 501(c)(3), provided, however, that amounts derived from selling, altering or repairing tangible personal propertv shall not be deductible. F. Interest on Obligations of the State, its Political Subdivisions, and Municipal Corporations: In computing tax, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest paid on all obligations of the State of Washington, its political subdivisions, and municipal corporations. G. Interest on Loans to Farmers and Ranchers, Producers or Harvesters of Aquatic Products, or Their Cooperatives: In computing tax, there mav be deducted from the measure of tax amounts derived as interest on loans to bona fide farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives by a lending institution which is owned exclusively by its borrowers or members and which is engaged solely in the business of making loans and providing finance-related services to bona fide farmers and ranchers, producers or harvesters of aquatic products, their cooperatives, rural residents for housing. 56 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 246 of 267 ORDINANCE NO. or persons engaged in furnishing farm-related or aquatic-related services to these individuals or entities. H. Receipts From Tangible Personal Propertv Delivered Outside the State: In computing tax, there mav be deducted from the measure of tax under retailing or wholesaling amounts derived from the sale of tangible personal propertv that is delivered by the seller to the buyer or the buyer's representative at a location outside the state of Washington. I. Cash Discount Taken by Purchaser: In computing tax, there mav be deducted from the measure of tax the cash discount amounts actually taken by the purchaser. This deduction is not allowed in arriving at the taxable amount under the extracting or manufacturing classifications with respect to articles produced or manufactured, the reported values of which, for the purposes of this tax, have been computed according to the "value of product" provisions. J. Credit Losses of Accrual Basis Taxpayers: In computing tax, there mav be deducted from the measure of tax the amount of credit losses actually sustained bv taxpayers whose regular books of account are kept upon an accrual basis. K. Repair, Maintenance, Replacement, Etc., of Residential Structures and Commonly Held Propertv-Eligible Organizations: 1. In computing tax, there mav be deducted from the measure of tax amounts used solely for repair, maintenance, replacement, management, or improvement of the residential structures and commonly held propertv, but 57 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 247 of 267 ORDINANCE NO. excluding propertv where fees or charges are made for use by the public who are not guests accompanied by a member, which are derived by: a. A cooperative housing association, corporation, or partnership from a person who resides in a structure owned by the cooperative housing association, corporation, or partnership; b. An association of owners of propertv as defined in RCW 64.32.010, as now or hereafter amended, from a person who is an apartment owner as defined in RCW 64.32.010; or c. An association of owners of residential propertv from a person who is a member of the association. "Association of owners of residential propertv" means any organization of all the owners of residential propertv in a defined area who all hold the same propertv in common within the area. 2. For the purposes of this subsection "commonly held propertv" includes areas required for common access such as reception areas, halls, stairways, parking, etc., and mav include recreation rooms, swimming pools and small parks or recreation areas; but is not intended to include more grounds than are normally required in a residential area, or to include such extensive areas as required for golf courses, campgrounds, hiking and riding areas, boating areas, etc. 3. To qualify for the deductions under this subsection: a. The salary or compensation paid to officers, managers, or employees must be only for actual services rendered and at levels comparable to 58 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 248 of 267 ORDINANCE NO. the salary or compensation of like positions within the county wherein the propertv is located; b. Dues, fees, or assessments in excess of amounts needed for the purposes for which the deduction is allowed must be refunded to the members of the association; c. Assets of the association or organization must be distributable to all members and must not inure to the benefit of anv single member or group of members. L Radio and Television Broadcasting - Advertising Agency Fees - National, Regional, and Network Advertising - Interstate Allocations: In computing tax, there mav be deducted from the measure of tax by radio and television broadcasters amounts representing the following: 1. Advertising agencies' fees when such fees or allowances are shown as a discount or price reduction in the billing or that the billing is on a net basis, i.e., less the discount; 2. Actual gross receipts from national network, and regional advertising or a "standard deduction" as provided by RCW 82.04.280; and 3. Local advertising revenue that represent advertising which is intended to reach potential customers of the advertiser who are located outside the State of Washington. The Administrator mav issue a rule that provides detailed guidance as to how these deductions are to be calculated. 59 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 249 of 267 ORDINANCE NO. M. Constitutional and Statutory Prohibitions: In computing tax, there mav be deducted from the measure of the tax amounts derived from business which the City is prohibited from taxing under the Constitution or laws of the State of Washington or the United States of America. N. Receipts From The Sale of Tangible Personal Propertv and Retail Services Delivered Outside the City But Within Washington: Effective January 1, 2008. amounts included in the gross receipts reported on the tax return derived from the sale of tangible personal propertv delivered to the buyer or the buyer's representative outside the City but within the State of Washington mav be deducted from the measure of tax under the retailing, retail services, or wholesaling classification. O. Professional Employer Services: In computing the tax, a professional employer organization may deduct from the calculation of gross income the gross income of the business derived from performing professional employer services that is equal to the portion of the fee charged to a client that represents the actual cost of wages and salaries, benefits, workers' compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the professional employer organization under a professional employer agreement. P. Interest on Investments or Loans Secured By Mortgages or Deeds of Trust: In computing tax, to the extent permitted by RCW Chapter 82.14A, there mav be deducted from the measure of tax by those engaged in banking, loan. 60 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 250 of 267 ORDINANCE NO. security or other financial businesses, amounts derived from interest received on investments or loans primarily secured bv first mortgages or trust deeds on non- transient residential properties. Q. Compensation from Public Entities for Health or Social Welfare Services- Deduction: In computing tax, there mav be deducted from the measure of tax amounts received from the United States or anv instrumentality thereof or from the State of Washington or anv municipal corporation or political subdivision thereof as compensation for, or to support, health or social welfare services rendered by a health or social welfare organization (as defined in RCW 82.04.431) or by a municipal corporation or political subdivision, except deductions are not allowed under this section for amounts that are received under an employee benefit plan. For purposes of this subsection, "employee benefit plan" does not include the military benefits program authorized in 10 U.S.C. Sec. 1071 et seq., as amended (CHAMPUS), or amounts payable. 5-25-12 NEW BUSINESS TAX CREDIT: A. Purpose: The City believes that providing a temporary tax credit relating to new businesses is a meaningful method of fostering such new businesses to establish a solid financial foundation during its start-up process. Further, the City finds that a credit related to the creation of fifty (50) or more new full-time equivalent ("FTE") employees within the City will benefit other local businesses. Therefore, considering situations particular and unique to the City, the City finds 61 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 251 of 267 ORDINANCE NO. that it is appropriate to differ from the business and occupation tax model ordinance in providing for a new business tax credit as described in this section. B. There mav be credited against the tax imposed by this chapter, the amount up to one thousand dollars ($1,000) per FTE in the City of Renton. C. To take the credit authorized by this section, a taxpayer must be able to document all of the following: 1. The taxpayer has not, for any period of time, engaged in business in the City of Renton for a period of ten (10) or more years prior to application for the tax credit: 2. The taxpayer employees fifty (50) or more full-time equivalent employees in Renton. An FTE is defined as each one thousand nine hundred and twenty (1,920) worker hours per calendar year: and 3. The taxpayer may be required to submit its quarterly reports to the State Department of Labor and Industries and/or other documentations in support of such employee hours worked in the City. 4. The taxpayer must report, on each return filed, the taxpayer's total number of full-time employment positions. D. The tax credit can be taken for the first twelve (12) consecutive reporting quarters or three (3) reporting years. E. This credit is not considered a payment of taxes for purposes of seeking a refund of overpayment of tax pursuant to the provisions of 5-25-14 or anv other purpose. As such, unused credit amounts will not be refunded, carried over 62 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 252 of 267 ORDINANCE NO. from reporting period's) to reporting period's), and will not accrue interest. F. The Administrator is authorized to promulgate rules implementing, interpreting, and enforcing the provisions of this section. 5-25-13 TAX PART OF OVERHEAD: It is not the intention of this chapter that the taxes or fees herein levied upon persons engaging in business be construed as taxes or fees upon the purchasers or customer, but that such taxes or fees shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such taxes or fees shall constitute a part of the cost of doing business of such persons. 5-25-14 ADMINISTRATIVE PROVISIONS: The Administrator shall, in consultation with the City Attorney, prepare administrative provisions in conformance with Chapter 35.102 RCW for review and approval by ordinance of the City Council, providing for the uniform administration of the tax levied by this chapter with respect to returns, deadline, penalties, interest, refund, additional assessments, appeals, time limitations for bringing actions and other related administrative matters. 5-25-15 SEVERABILITY CLAUSE: If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. 63 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 253 of 267 ORDINANCE NO. SECTION II. Referendum Authorized. A referendum petition to repeal this ordinance may be filed with the City Clerk within seven (7) calendar days of passage of this ordinance. Within ten (10) days of such filing, the City Clerk shall confer with the petitioner concerning form and style of the petition, issue the petition an identification number, and secure an accurate, concise, and positive ballot title from the designated local official. The petitioner shall have thirty (30) calendar days in which to secure the signatures of not less than fifteen percent (15%) of the registered voters of the City, as of the last municipal general election, upon petition forms that contain the ballot title and the full text of the measure to be referred. The City Clerk shall verify the sufficiency of the signatures on the petition and, if sufficient valid signatures are properly submitted, shall certify the referendum measure to the next election ballot within the City or at a special election ballot as provided pursuant to RCW 35.17.260(2). Except as otherwise provided, all provisions set forth in RCW 35.17.250 through RCW 35.17.360 that are applicable to the character and form for an initiative petition, to the examination and certification, and to the submission to the vote of the people of the ordinance proposed, shall apply to the referendum petition authorized and to this ordinance. SECTION III. Severability. Should any section, paragraph, sentence, clause or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be pre-empted by state or federal law or regulation, such decision or pre-emption shall not affect the validity of the remaining portions of this ordinance or its application to other persons or circumstances. SECTION IV. This ordinance shall be effective upon its passage, approval, and thirty (30) calendar days after publication. 64 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 254 of 267 ORDINANCE NO. PASSED BY THE CITY COUNCILthis day of , 2014. Jason A. Seth, Acting City Clerk APPROVED BY THE MAYOR this day of , 2014. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1839:10/22/14:scr 65 10e. - Adopt Business and Occupation Tax Code (Approved via 10/20/2014 Page 255 of 267 CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 5-5-3 OF CHAPTER 5, BUSINESS LICENSES, OF TITLE V (FINANCE AND BUSINESS REGULATIONS) OF THE RENTON MUNICIPAL CODE, BY CLARIFYING THE METHODS OF CALCULATION OF BUSINESS LICENSE FEES AND RESTATING THE SECTION ENTITLED "EXEMPTION". THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Subsection 5-5-3.C, License Fee, of Chapter 5, Business Licenses, of Title V (Finance and Business Regulations) of the Renton Municipal Code, is hereby amended as follows: C. License Fee: The general business license fee shall consist of two (2) parts, a fixed registration fee and a variable per employee fee, which shall be determined by the number of employees worker-hours in the City of Renton during the reporting periods as follows: 1. New License Application Registration Fees: The now license Business License Registration fee shall be calculated by estimating the number of hours to bo worked during tho upcoming year. For one thousand nino hundred twenty (1,920) or loss total hours worked per year, tho minimum license fee of one hundred ten dollars ($110.00) shall apply be due and payable when filing a completed registration form as prescribed by the Administrator. For total hours worked exceeding one thousand nine hundred twenty (1,920) per year, tho license foe shall be the total of a forty five dollar ($15.00) base liconsc fee plus a 10f. - Clarify Business License Fees (Approved via 10/20/2014 Committee of Page 256 of 267 ORDINANCE NO. per hour foo calculated by multiplying totol hours workod by $0,034 por hour. For thoso businesses relocating to Renton and anticipating an equivalent number of omployee hours in tho upcoming year, the foo may be based on the prior year's hours. The Registration Fee mav be adjusted from time to time, as published in the city's current Fee Schedule brochure. 2. Renewal Per Employee Fees: Tho annua4 Effective January 1, 2015, in addition to the Registration Fee described in subsection C.l above, a per employee license renewal fee shall be calculated by multiplying the actual number of hours worked during the reporting period. For one thousand nine hundred twonty (1,920) or loss total hours workod por yoar, the minimum liconse fee of one hundred ton dollars ($110.00) shall apply. For total hours workod oxcooding one thousand nine hundred twenty (1,920) per year, the license fee shall be tho total of a forty five dollar ($45.00) base liconse fee plus a per hour foe calculated by multiplying total hours worked by $0.03452 per hour. Businesses with fewer than 1500 worker hours por yoar shall bo exempt from paying tho por employee foo described in this subsection.- Businesses with fewer than one thousand two hundred (1,200) worker-hours in a year or three hundred (300) hours in a quarter shall be exempt from paving the per employee fee described in this subsection. The reporting period for new businesses shall be quarterly on or before the quarterly reporting due dates. 3. Ronumbored by Ord. 5679. The per hour rate shall be administratively adjusted every other year by the percentage rise or fall of the Seattle-Tacoma- 2 10f. - Clarify Business License Fees (Approved via 10/20/2014 Committee of Page 257 of 267 ORDINANCE NO. Bremerton Consumer Price Index, All Items, Urban Wage Earners and Clerical Workers (also known as CPI-W) ending August 31, for the same two (2) year period and published in the City's current Fee Schedule brochure. A-. At any time during the year that it appears that tho number of employees has boon under reported, an additional license fee shall be due- Additional license foes are calculated using tho method shown in subsection CI of this section and basod on tho net difference botweon estimated foes paid at the time of new license application and tho fees for hours actually workod. Such additional license foo shall bo paid to the City at the time of annual renewal. $-.—If, at any time, it appears that the number of employees for the year has boon undor reported by twenty percent (20%), or more, there shall be a penalty applied to any additional foo owed, equal to twenty percent (20%) per annum of the additional fee, plus any accounting, legal or administrativo expense incurred by the City in determining the under reporting, tho amount of the under reporting or in collecting tho tax and any penalty. —Each business license holder may be required, by the Administrativo Services Administrator or his/her designee, to file with the City of Renton, copies of its quarterly reports to the State Department of Labor and Industries reporting employee hours worked. The businesses that did not file the report may be required to file an affidavit with the City reporting hours worked or the equivalent number of employees. 3 10f. - Clarify Business License Fees (Approved via 10/20/2014 Committee of Page 258 of 267 ORDINANCE NO. 74. Due Dates: Annual business license registration and per employee fees are due by the last day of the month of the anniversary or expiration of the current license. Quarterly license fees are due by the last day of January for businesses with anniversary dates which fall within the forth calendar quarter of the year, April for businesses with anniversary dates which fall within the first calendar quarter of the year, July for businesses with anniversary dates which fall within the second calendar quarter of the year, and October for businesses with anniversary dates which fall within the third calendar quarter of the year. For those businesses required to report quarterly, in additional to the annual registration fee due as described above, the per employee fees are due by the last day of January, April, July, and October. 85. Reporting Periods: Per Employee ^business license fees are calculated for the reporting period. The Administrativo Services Administrator mav set shall have the discretion to designate a business' reporting periods as annually or quarterly based on various factors, among others, the number of employees and/or seasonal nature of the business payment schedules and duo dates for business liconse foes on an exceptional basis. a. The ^reporting period for those required to file annually business licenses shall be the four (4) complete calendar quarters preceding the due date. b. The reporting period for those required to file quarterly licenses shall be the calendar quarter preceding each quarterly due date. 4 10f. - Clarify Business License Fees (Approved via 10/20/2014 Committee of Page 259 of 267 ORDINANCE NO. 96. Expiration: Unless otherwise established by the Administrator, an annual business license registration is valid for a period of one (1) year and shall expire on the same date as the due date as described in subsection C.4 above. ©« the last day of the month of the anniversary date of the initial business license issuance or the expiration date as stated on the face of the license. A business license with an approved quarterly reporting plan shall expire on tho last day of January, April, July and October if the quarterly report and payments are not received by those dates. 407. Location of Business and Employees: a. Presumption: For purposes of this section, any business operating within the City limits of the City of Renton shall be deemed to have all of its employees working within the City limits of the City of Renton. b. Working Outside City: For any employees whose nominal place of business is within the City limits of the City of Renton, all hours will be presumed to be worked within the City and subject to this fee. Any employee regularly reporting to work within the City limits shall have all of that employee's time subject to this fee, even if portions of the employee's time are spent outside the City of Renton (for example, a realtor or outside salesperson). Fef When an employee normally employed within the City of Renton who, for extended periods of time, reports to work outside the City of Renton, for example, a contractor's employees reporting directly to job sites, then the employer may by affidavit report the number of hours actually worked within the City or the 5 10f. - Clarify Business License Fees (Approved via 10/20/2014 Committee of Page 260 of 267 ORDINANCE NO. percentage of time within the City based upon one thousand nine hundred twenty (1,920) hours annually and pay the annual license fee based upon those figures. c. Short Term or Temporary License: A temporary ninety (90) calendar day license may be purchased for fifty dollars ($50.00) for each full-time equivalent employee ("FTE") or for each four hundred and eighty (480) worker- hours during the ninety (90) calendar day period, or as prescribed in the City's Fee Schedule. The expiration date of the license shall be ninety (90) calendar days from date of issuance. The temporary business license may only be purchased by businesses with fifty (50) or fewer FTE. The license may be renewed at the applicable FTE rate for successive ninety (90) calendar day periods not to exceed two hundred seventy (270) consecutive days. Renewal forms will not be sent to short term business licensees. Renewals must be at the request of licensee. All late fees and penalties apply. 448. Any payment not made within one (1) month following the due date shall be cause for the automatic revocation of the business license. 429. The Administrator shall have the authority to inspect business premises, and review or audit business records with reasonable prior notice. 10. Non-Profit Exemption: A bona fide non-profit organization organized under Section 501(c)(3) of the Internal Revenue Code whose income is primarily from compensation from public entities for health or social welfare services, grants, and/or donations, shall register and file employment information 6 10f. - Clarify Business License Fees (Approved via 10/20/2014 Committee of Page 261 of 267 ORDINANCE NO. at least annually but shall be exempt from paying the registration and the per employee fee. Primarily shall mean more than fifty percent (50%). SECTION Ii. This ordinance shall be effective upon its passage, approval, and thirty (30) calendar days after publication. PASSED BY THE CITY COUNCIL this day of , 2014. Jason A. Seth, Acting City Clerk APPROVED BY THE MAYOR this day of , 2014. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1838:10/22/14:scr 7 10f. - Clarify Business License Fees (Approved via 10/20/2014 Committee of Page 262 of 267 CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SUBSECTION 5-4-2.C OF CHAPTER 4, ANIMAL LICENSES, OF TITLE V (FINANCE AND BUSINESS REGULATIONS) OF THE RENTON MUNICIPAL CODE, BY REDUCING THE AGE FOR CITY RESIDENTS TO QUALIFY FOR DISCOUNTED ANIMAL LICENSES AVAILABLE TO LOW INCOME SENIORS. THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Subsection 5-4-2.C of Chapter 4, Animal Licenses, of Title V (Finance and Business Regulations) of the Renton Municipal Code, is hereby amended as follows: C. City residents sixty two (62) sixty-one (61) years of age or older, if income qualified as set forth in Subsections 8 5 15D and E and Ssubsection 8-4- 3LC of the City Code, shall be entitled to purchase a special permanent animal license. Such qualified senior citizens persons shall not be required to annually purchase a new license for the lifetime of such licensed animals; provided, that no person so qualified shall be granted more than three (3) permanent licenses „for any combination of three (3) cats and dogs for which they are the registered owners. SECTION II. This ordinance shall be effective upon its passage, approval, and thirty (30) days after publication. PASSED BY THE CITY COUNCILthis day of , 2014. Jason A. Seth, Acting City Clerk 1 10g. - Modify Senior Citizen Age Threshold for Pet Licenses (Approved via Page 263 of 267 ORDINANCE NO. APPROVED BY THE MAYOR this day of , 2014. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1843:10/22/14:scr 2 10g. - Modify Senior Citizen Age Threshold for Pet Licenses (Approved via Page 264 of 267 CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, ADOPTING THE BIENNIAL BUDGET FOR THE YEARS 2015/2016, IN THE AMOUNTS OF $243,543,692 AND $242,343,675, RESPECTIVELY. WHEREAS, the City of Renton has met and considered its budget for the calendar years 2015 and 2016; and WHEREAS, the Council conducted public hearings for the purpose of accepting testimony related to the 2015/2016 biennial budget on October 20, 2014, and again on October 27, 2014; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. After due notice and public hearing thereon as provided by law, the biennial budget for the City of Renton for the years 2015/2016, previously prepared and filed with the City Clerk, as modified hereby, is hereby ratified, confirmed and adopted, in all respects, as such biennial budget for the years 2015/2016. Such biennial budget is detailed in Attachment A, 2015/2016 Biennial Budget Summary by Fund - All Funds, which is incorporated herein as if fully set forth. SECTION II. Attachment A defines the total sums authorized and allowed for expenditures and establishes such sums in each of the funds in the 2015/2016 biennial budget. SECTION III. Acts pursuant to this ordinance, but prior to its passage or effective date, are hereby ratified and confirmed. 1 10h. - Adopt 2015/2016 Biennial Budget (Approved via 10/20/2014 Committee of Page 265 of 267 ORDINANCE NO. SECTION IV. A copy of the 2015/2016 biennial budget, as herein adopted, shall be transmitted to the Office of the State Auditor, Division of Municipal Corporations, and such other governmental agencies as provided by law. SECTION V. This ordinance shall be effective upon its passage, approval, and five (5) days after publication. PASSED BY THE CITY COUNCILthis day of , 2014. Jason A. Seth, Acting City Clerk APPROVED BY THE MAYOR this day of , 2014. Denis Law, Mayor Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: ORD:1840:10/22/14:scr 2 10h. - Adopt 2015/2016 Biennial Budget (Approved via 10/20/2014 Committee of Page 266 of 267 ORDINANCE NO. ATTACHMENT A 2015/2016 BIENNIAL BUDGET SUMMARY BY FUND - ALL FUNDS Budgeted Increase Estimated 2015 Proposed 2016 Proposed 2015 Proposed 2016 Proposed (Decrease) in Ending Fund Fund/ Department Beg Fund Bal Revenue Revenue Expenditure Expenditure Fund Balance Balance 000 GENERAL 13,508,009 112,867,002 116,800,965 112,941,443 116,801,589 (75,066) 13,432,943 102 ARTERIAL STREETS 15,689 640,000 650,000 640,000 650,000 15,689 108 LEASED CITY PROPERTIES 368,261 768,957 768,957 663,403 671,979 202,532 570,793 110 SPECIAL HOTEL-MOTEL TAX 135,913 265,000 265,000 245,000 265,000 20,000 155,913 125 ONE PERCENT FOR ART 92,771 15,000 15,000 102,950 -(72,950) 19,821 127 CABLE COMMUNICATIONS DEVELOPMENT 285,632 97,674 97,674 97,674 97,674 -285,632 135 SPRINGBROOK WETLANDS BANK 669,613 ----669,613 303 COMMUNITY SERVICE IMPACTMITIGATION 1,110,618 86,500 86,500 --173,000 1,283,618 304 FIRE IMPACT MITIGATION 846,165 99,000 99,000 250,000 250,000 (302,000) 544,165 305 TRANSPORTATION IMPACT MITIGATION 749,185 216,500 216,500 196,000 -237,000 986,185 316 MUNICIPAL FACILITIES CIP 446,689 3,344,000 5,103,000 3,366,000 5,392,000 (311,000) 135,689 317 CAPITAL IMPROVEMENT 1,434,436 13,167,628 6,582,000 14,274,630 6,831,590 (1,356,592) 77,844 326 HOUSING OPPORTUNITY 1,010,599 ----1,010,599 336 NEWLIBRARYDEVELOPMENT 57,000 --57,000 4X2 AIRPORTOPERATIONS/CIP 233,478 2,651,020 3,473,293 2,260,529 3,786,185 77,599 311,077 403 SOLID WASTE UTILITY 1,257,755 16,461,726 16,514,320 16,675,139 17,144,532 (843,626) 414,129 4X4 MUNICIPAL GOLF COURSE OPER/CIP 111,691 2,655,383 2,812,793 2,616,052 2,303,479 548,646 660,337 4X5 WATER OPERATIONS/CIP 11,030,050 16,272,634 16,308,371 16,737,381 17,894,664 (2,051,039) 8,979,011 4X6 WASTEWATER OPERATIONS/CIP 5,019,553 10,487,717 9,778,676 9,688,076 9,246,634 1,331,683 6,351,236 4X7 SURFACEWATEROPERATIONS/CIP 3,113,930 11,999,966 9,859,250 11,746,980 10,026,642 85,593 3,199,523 416 KING COUNTY METRO 2,611,562 16,638,722 16,638,722 16,638,722 16,638,722 -2,611,562 501 EQUIPMENT RENTAL 3,608,097 5,764,536 5,921,100 5,507,047 4,203,192 1,975,397 5,583,494 502 INSURANCE 11,757,156 4,341,647 3,991,201 3,594,578 3,509,594 1,228,677 12,985,833 503 INFORMATION TECHNOLOGY 843,690 4,631,231 4,702,271 4,641,865 4,712,338 (20,701) 822,989 504 FACILITIES 706,922 4,922,003 4,930,944 4,918,001 4,926,946 8,001 714,923 505 COMMUNICATIONS 327,742 992,431 1,027,739 991,430 1,026,738 2,002 329,744 512 HEALTHCARE INSURANCE 6,420,432 12,954,736 14,295,824 13,424,573 14,596,149 (770,162) 5,650,270 522 LEOFF1 RETIREES HEALTHCARE 7,221,225 1,639,699 1,662,647 1,115,744 1,167,553 1,019,049 8,240,274 611 Fl REM ENS PENSION 4,907,478 468,000 468,000 210,475 200,475 525,050 5,432,528 All Other Funds 66,393,332 131,581,710 126,268,782 130,602,249 125,542,086 1,706,157 68,099,489 TOTAL ALL FUNDS S 79,901,341 $ 244,448,712 $243,069,747 $243,543,692 $242,343,675 $ 1,631,091 $ 81,532,432 3 10h. - Adopt 2015/2016 Biennial Budget (Approved via 10/20/2014 Committee of Page 267 of 267