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AGENDA
City Council Regular Meeting
7:00 PM - Monday, March 26, 2018
Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way
1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE
2. ROLL CALL
3. PROCLAMATION
a) Sikh Heritage Day - April 14, 2018
4. ADMINISTRATIVE REPORT
5. AUDIENCE COMMENTS
• Speakers must sign-up prior to the Council meeting.
• Each speaker is allowed five minutes.
• When recognized, please state your name & city of residence for the record.
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.
6. 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 March 19, 2018.
Council Concur
b) AB - 2106 Administrative Services Department requests approval to write off bad debt in
the total amount of $36,436.64.
Refer to Finance Committee
7. 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) Committee of the Whole: Civic Core "Quick Wins" Recommendation on Implementation
b) Finance Committee: Vouchers, Authorization to Purchase COBANTech Units, Business
License Online Filing System*
c) Utilities Committee: Cedar River Maintenance Dredge Project Agreement with
GeoEngineers, 2017 Update to the Water Resources Inventory Area (WRIA) 8 Plan*
8. LEGISLATION
Resolution(s):
a) Resolution No. 4335: Business License Online Filing System (See Item 7.b)
b) Resolution No. 4336: 2017 Update to the Water Resources Inventory Area (WRIA) 8 Plan
(See Item 7.c)
9. NEW BUSINESS
(Includes Council Committee agenda topics; visit rentonwa.gov/cityclerk for more
information.)
10. ADJOURNMENT
COMMITTEE OF THE WHOLE MEETING AGENDA
(Preceding Council Meeting)
5:30 p.m. - 7th Floor - Conferencing Center
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
To view Council Meetings online, please visit rentonwa.gov/councilmeetings
0DenisLawMayorProctamationC44iereas,SikhismisareligionfoundedinthePunjabregionofSouthAsiaoverfivecenturiesagoandintroducedtotheUnitedStatesinthe19thcentury;and‘14%iereas,Sikhismisthefifthlargestworldreligionwithapproximately25millionadherentsfromdiversebackgroundsthroughouttheworld,including500,000adherentsintheUnitedStates;and‘I47Iiereas,SikhAmericanshavemadeimportantcontributionstothesocial,economic,andculturalfabricofourcityandcontinuetomakestridestowardsecuringreligiouslibertyaspatrioticmembersoftheUnitedStatesArmedForces;andC4lfiereas,SikhsintheUnitedStatespursuediverseprofessionsandwalksoflife,makingrichcontributionstotheeconomicvibrancyoftheUnitedStatesasfarmers,engineers,doctors,scientists,andbusinessowners;andWtiereas,Renton,oneofthemostmulticulturalcitiesintheareaandhometopeoplefromallovertheworld,pridesitselfonbeingacitywherepeopleofallfaithsandculturesarewelcomed,respected,andabletoliveinharmonywitheachother;and‘T4lñereas,duringthemonthofApril,theSikhcommunitycelebratesVaisakhi,alsoknownasKhalsaDay,whichmarksthebeginningoftheharvestseasonandtheSikhNewYear;andW’Iiereas,VaisakhiisoneofthemostreligiouslysignificantdaysinSikhhistory,commemoratingthecreationoftheKhalsa,afellowshipofdevoutSikhs,byGuruGobindSinghin1699;andWfiereas,eventssuchasthiscelebratetherichculturesandtraditionsthatcontributetotheuniquecharacterofourcity;Wow,tfierefore,I,DenisLaw,MayoroftheCityofRenton,doherebyproclaimApril14,2018,tobeSiQfiJCeritagecDayintheCityofRenton,andIencourageallcitizenstojoinmeinthisspecialobservance.InwitnesswfiereofIhavehereuntosetmyhandandcausedthesealoftheCityofRentontobeaffixedthis26thdayofMarch,2018DenisLaw,MayorCityofRenton,WashingtonRentonCityHall,7thFloor1055SouthGradyWay,Renton,WA98057.rentonwa.govAGENDA ITEM #3. a)
March 19, 2018 REGULAR COUNCIL MEETING MINUTES
MINUTES
City Council Regular Meeting
7:00 PM ‐ Monday, March 19, 2018
Council Chambers, 7th Floor, City Hall – 1055 S. Grady Way
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
Mayor Law called the meeting of the Renton City Council to order at 7:00 PM and led the
Pledge of Allegiance.
ROLL CALL
Councilmembers Present:
Ed Prince, Council President
Randy Corman
Ryan McIrvin
Ruth Pérez
Armondo Pavone
Councilmembers Absent:
Don Persson
Carol Ann Witschi
MOVED BY PRINCE, SECONDED BY CORMAN, COUNCIL EXCUSE ABSENT
COUNCILMEMBERS DON PERSSON AND CAROL ANN WITSCHI. CARRIED.
ADMINISTRATIVE STAFF PRESENT
Denis Law, Mayor
Jay Covington, Chief Administrative Officer
Preeti Shridhar, Deputy Public Affairs Administrator
Cheryl Beyer, Senior Assistant City Attorney
Megan Gregor, Deputy City Clerk
Gregg Zimmerman, Public Works Administrator
Commander Tracy Wilkinson, Police Department
SPECIAL PRESENTATION
Nature's Scorecard: Staff Attorney from Puget SoundKeeper Danielle Shaw and Local
Government Affairs Manager from Washington Environmental Council Sophia Ressler
presented Nature's Scorecard, a tool to help the public see how new statewide requirements
have been implemented at the local level to protect people and salmon from pollution and
flooding. Ms. Shaw and Ms. Ressler also presented the City with an award for being one of
eight cities and counties to go above and beyond the requirements of meeting the National
Pollutant Discharge Elimination System (NPDES) permit requirements.
AGENDA ITEM #6. a)
March 19, 2018 REGULAR COUNCIL MEETING MINUTES
ADMINISTRATIVE REPORT
Chief Administrative Officer Jay Covington reviewed a written administrative report
summarizing the City’s recent progress towards goals and work programs adopted as part of
its business plan for 2018 and beyond. Items noted were:
Beginning April 1, 2018, Medicare will start a year‐long project to replace all current
Medicare cards for beneficiaries to convert from using social security numbers to
using alphanumeric ID numbers. All new Medicare cards will come in the mail.
Nothing needs to be requested. There is a current scam whereby someone claiming
to be from Medicare will call to say a card is on the way but that a temporary card is
needed and a fee is required for the temporary card. They will ask for personal
information so they can process the temporary card. Remember: Medicare handles
all communications by mail unless you call them.
Tuesday, March 20th, 5:30 to 7:30 p.m. The City of Renton and the Federal
Emergency Management Agency (FEMA) will host a public meeting to discuss updates
to floodplain maps based on new data about flood hazards, what it means to own
property in or near a floodplain, and the current appeal and comment period. The
meeting will give residents an opportunity to learn more about both the current and
the preliminary floodplain maps and to get questions about the process answered.
The meeting will be held at the Renton Community Center Banquet Room, 1715
Maple Valley Highway, Renton.
Preventative street maintenance will continue to impact traffic and result in
occasional street closures.
CONSENT AGENDA
Items listed on the Consent Agenda were adopted with one motion, following the listing. At the request
of Councilmember McIrvin, item 6.h. was removed for separate consideration.
a) Approval of Council Retreat minutes of February 15, 2018. Council Concur.
b) Approval of Council Retreat minutes of February 16, 2018. Council Concur.
c) Approval of Council Meeting minutes of March 12, 2018. Council Concur.
d) AB ‐ 2099 Mayor Law appointed the following individuals to the Renton Airport Advisory
Committee: Shane Carlson, Airport‐at‐Large primary position, and Salim Nice, Mercer Island
Neighborhood position, both for unexpired terms expiring on 5/7/2019.
Refer to Transportation (Aviation) Committee.
e) AB ‐ 2105 Administrative Services Department requested authorization to purchase 25
COBANTech In‐Car Camera units, in the approximate amount of $141,488.88, to equip 25 new
Renton Police Department vehicles. The funding for this purchase was included in the
2017/2018 Mid‐Biennium Budget adjustment. Refer to Finance Committee.
f) AB ‐ 2103 Public Works Department requested adoption of a resolution declaring an
emergency for the purpose of replacing a damaged signal pole at the intersection of NE 4th
St. and Duvall Ave NE. Council Concur.
g) AB ‐ 2100 Public Works Department recommended authorizing the purchase of a Caterpillar
938M Wheel Loader utilizing state bid contract NJPA 032515‐CAT, in the approximate amount
of $147,350. The funds to cover this purchase were included in the 2017/2018 Biennium
Budget. Council Concur.
AGENDA ITEM #6. a)
March 19, 2018 REGULAR COUNCIL MEETING MINUTES
i) AB ‐ 2102 Utility Systems Division recommended approval of an agreement with
GeoEngineers, Inc., in the amount of $963,864, for the post‐construction documentation and
mitigation monitoring for the Cedar River Maintenance Dredge project. This project is funded
entirely by the King County Flood Control District Capital Improvement Project budget.
Refer to Utilities Committee.
j) AB ‐ 2104 Utility Systems Division recommended adoption of a resolution ratifying the 2017
Update to the Water Resource Inventory Area (WRIA) 8 Chinook Salmon Conservation Plan.
Refer to Utilities Committee.
MOVED BY PRINCE, SECONDED BY CORMAN, COUNCIL CONCUR TO APPROVE THE
CONSENT AGENDA, MINUS ITEM 6.H. CARRIED.
ITEM 6.H. ‐ SEPARATE CONSIDERATION
h) AB ‐ 2101 Utility Systems Division recommended approval of an agreement with Harris &
Associates, Inc., in the amount of $114,719, for the 2018 Comprehensive Rate Study and
Recommendation for System Development Charges for Water, Wastewater and Surface
Water Utilities. Refer to Utilities Committee. Council Concur.
MOVED BY MCIRVIN, SECONDED BY PRINCE, COUNCIL CONCUR TO APPROVE
ITEM 6.H. AS COUNCIL CONCUR. CARRIED.
LEGISLATION
Resolution(s):
a) Resolution No. 4334: A Resolution was read declaring an emergency for the purposes of
replacing/repairing traffic signal pole on NE 4th St & Duvall Ave NE.
MOVED BY PRINCE, SECONDED BY PAVONE, COUNCIL ADOPT THE RESOLUTION
AS READ. CARRIED.
NEW BUSINESS
Please see the attached Council Committee Meeting Calendar.
ADJOURNMENT
MOVED BY PRINCE, SECONDED BY PAVONE, COUNCIL ADJOURN. CARRIED.
TIME: 7:19 P.M.
Jason A. Seth, CMC, City Clerk
Megan Gregor, CMC, Recorder
Monday, March 19, 2018
AGENDA ITEM #6. a)
Council Committee Meeting Calendar
March 19, 2018
March 22, 2018
Thursday
3:30 PM Utilities Committee, Vice-chair McIrvin – Council Conference Room
1. Cedar River Maintenance Dredge Project Agreement with GeoEngineers
2. 2017 Update to the Water Resources Inventory Area (WRIA) 8 Plan
3. Multi-family Solid Waste Billing
4. Emerging Issues in Utilities
4:30 PM Planning & Development Committee, Chair McIrvin – Council Conference Room
1. Docket Discussion
2. Multi-family Tax Exemption
3. City Center Plan Discussion
4. Emerging Issues in CED
March 26, 2018
Monday
5:00 PM Finance Committee, Vice-chair Pérez – Council Conference Room
1. Authorization to Purchase COBANTech Units
2. Business License Online Filing System
3. Vouchers
4. Emerging Issues in Revenue Streams
CANCELLED Public Safety Committee, Chair Pavone
5:30 PM Committee of the Whole, Chair Prince – Conferencing Center
1. Economic Development/Downtown Revitalization Update
2. Civic Core “Quick Wins” Recommendation on Implementation
AGENDA ITEM #6. a)
AB - 2106
City Council Regular Meeting - 26 Mar 2018
SUBJECT/TITLE: Bad Debt Write Off
RECOMMENDED ACTION: Refer to Finance Committee
DEPARTMENT: Administrative Services Department
STAFF CONTACT: Kari Roller, Fiscal Services Manager
EXT.: 6931
FISCAL IMPACT SUMMARY:
The total value of debt submitted for write off is $36,436.64.
SUMMARY OF ACTION:
As per City Policy & Procedure 220-03, the City Council’s Finance Committee can recommend writing off bad
debt over $100.00 that has been deemed uncollectable from the City’s accounting records after approval. A
detailed list of each account follows this memorandum. The total value of debt submitted for write off is
$36,436.64.
Finance staff reviews the outstanding debt and then turns these debts over to a collection agency.
Periodically, finance staff reviews the uncollected outstanding debts with the c ollection agency to identify
debts that cannot be collected for a variety of reasons. In the case of the attached report, the debt relates to
utility billing customers who have filed bankruptcy.
EXHIBITS:
A. IP
STAFF RECOMMENDATION:
Approve the listed debts to be written off City's accounting records in the amount of $36,436.64.
AGENDA ITEM #6. b)
ADMINISTRATIVESERVICESMEMORANDUMDATE:March15,2013TO:EdPrince,CouncilPresidentMembersofRentonCityCouncilVIA:DenisLaw,MayorFROM:JanHawn,ASDAdministratorSTAFFCONTACT:KariRoller,FinancialServicesManagerSUBJECT:BadDebtWriteOffAsperCityPolicy&Procedure220-03,theCityCouncil’sFinanceCommitteecanonlywriteoffbaddebtover$100.00thathasbeendeemeduncollectablefromtheCity’saccountingrecordsafterapproval.Adetailedlistofeachaccountfollowsthismemorandum.Thetotalvalueofdebtsubmittedforwriteoffis$36,436.64.Financestaffreviewstheoutstandingdebtandthenturnsthesedebtsovertoacollectionagency.Periodically,financestaffreviewstheuncollectedoutstandingdebtswiththecollectionagencytoidentifydebtsthatcannotbecollectedforavarietyofreasons.Inthecaseoftheattachedreport,thedebtrelatestoutilitybillingcustomerswhohavefiledbankruptcy.FinancestaffrequeststheFinanceCommittee’sapprovaltowriteoffthelisteddebtsfromtheCity’saccountingrecords.Cc:JayCovington,ChiefAdministrativeOfficerJamieThomas,FiscalServicesDirectorTernWeishaupt,AccountingSupervisorAGENDA ITEM #6. b)
CustseqNameBadDebtInformationtotal328661JAMIENELSONDavidson,ChristopherO(jdb)wawbke111.192:08-bk-17989711/21/200802/25/2009StandardDischarge02/19/200933161CHARLESSTROUSSbr14-16923-TWDKoleneKWhiteList116.76Partieswawbke2:14-bk-16923709/18/201412/29/2014StandardDischarge12/24/20143177OCWENLOANSERVICING11-19426-TWD8/8/201111-19426-TWD132.21KingaBSzulkowskiCasetype:bkChapter:7Asset:YesVol:vJudge:TimothyWDoreDatefiled:08/08/2011Dateoflastfiling:25365KINGASZULKOWSKI-FNMA11-19426-TWD8/8/2011149.41KingaBSzulkowskiListPartieswawbke2:11-bk-19426708/08/201104/23/2013StandardDischarge11/08/2011364471NARINDERPALSINGHMohamadi,Karen(db)waebke2:10-bk-165.9804952708/26/201011/17/2010StandardDischarge11/17/201041036WADEANDAMANDALYONSOldUncollectibleclosedccount.171.8332953AMARJITKHERA11-17934-MLB7/1/2011FILEDATECase177.46ClosedGREGORYBOLDT08/31/20111968daysOrderApprovingAccountDischargingChapter13TrusteeandClosingDismissedChapter13Case32025ADAMLAY15-12904-TWDAdamLamarLayList204.76Partieswawbke2:15-bk-12904705/09/201508/17/2015StandardDischarge08/12/2015403551PATRISHARANKINChap13filed8/23/10Rankin,Patrisha216.26Ann(db)wawbke2:10-bk-199161308/23/201012/08/2015StandardDischarge10/29/201511277NHOLLANDSWORTH228.39willbeuncotlectibleif228.39Hollandsworthdoesnotrepay.Refundissuedinerrorduetomisappledpayment.Don’ttransfertoBrown.20989ROBERTEDYKEMANPARCELVOIDEDoriginalparcelfor279.36HoneybrookeWestplattedto51parcelson3/1/08creditchargesbacktothatdateperGaryFinkAGENDA ITEM #6. b)
20990ROBERTEDYKEMANPARCELVOIDED-originalparcelfor279.36Honeybrookewest,plattedto51parcelson3/1/08.CreditbacktothatdateperGaryFink51384NANCYBACAForceoutthroughSherrifssale.315.57Uncollectable.15672JODIEULNESSGarbageonlyaccountatmobilehome321.76park.Notlienable.BadDebt.28213PAVELSTEPANOVChap7filedon5/14/09Stepanov,Pave!333.17Georgievich(db)wawbke2:09-bk-14707705/14/200901/22/2010StandardDischarge08/19/200920598BRENDASHINAUL8/6/0808-bk-14999-347.309-28-2009-09-bk-200018/9/1313-17279-TWD377641HUD/BRENDAROGERS373.87bramount.BRENDAROGERS373.87Chap7filedon9/14/10.373.8710-20914-SJSBrendaMRogersCasetype:bkChapter:7Asset:NoVol:vJudge:Samueli.SteinerDatefiled:103261SYNNEXLLCWriteoffwaterserviceschargesexcept383.74for4monthsperforeclosurelaw.Customeraccount10326willreflect4monthsofwaterservicechargesandallotherservices.71581CARLOSHAYS/PREVIEWPROPERTIESHays,CarlosA(db)wawbke2:09-bk-415.8423389712/20/200903/29/2010StandardDischarge03/24/201027158REALTRUSTIRAALTERNATIVES11-19254-TWD8/3/2011FILEDATE442.468/3/2OllGeorgeGelashviliandTsiuriGelashviliListPartieswawbke2:11-bk-19254708/03/201101/09/2012StandardDischarge11/09/20111182STAY@HOMEDESIGNLLC11-20279-TWD8/30/2011451.26OdilonFriasCarinoandMarieJoyCastorCarinoListPartieswawbke2:11-bk-20279708/30/201112/07/2011StandardDischarge11/30/201112640ROBERTWALTERS-STONECOURTOWNERSASS14-15543-KAOFILED7/23/2014Date465.75filed:07/23/2014Dateoflastfiling:11/03/2014Debtordischarged:10/29/2014AGENDA ITEM #6. b)
44546CARLAFULLER15-12444-MIBFILED4-21-2015CarlaA489.4$FullerListPartieswawbke2:15-bk-12444704/21/201509/02/2015StandardDischarge08/11/201516307RADIOSHACKSTORE#013336RADIOSHACK(jdb)azbke3:15-bk-04753566.77704/23/201505/24/2016StandardDischarge08/21/201510177KHAMKHOUNSOMBATH13-14638-TWDDISCHARGEGRANTED588.973201LLOYDLAIGO12-13073-TWD3/27/2013Laigo,Lloyd608.78(db)wawbke2:12-bk-13073703/27/201204/27/2015StandardDischarge07/05/201242310WELLSFARGOBANK,NA11-20312-TWD8/30/201111-20312-632.62TWDRobertJohnAndradeCasetype:bkChapter:7Asset:NoVol:vJudge:TimothyWDoteDatefiled:08/30/2011Dateoflastfiling:26036JONQUACH&STEPHANIENGOChap7filedon2/13/09Ngo,Stephanie634.65T(jdb)wawbke2:09-bk-11208702/13/200906/03/2009StandardDischarge05/20/200926857FENGXING12-13504-MLB4/5/2012KarsonKa-670.16ShingCheungandSandyBVuongListPartieswawbke2:12-bk-13504704/05/201210/26/2015db:DischargeWaived321711HOMEOWNERSASSOCmetercut&capped02/2014on693.725/28/2014.Notinuse,nohoaandnowaytocollectfees.9295MASSOUDSADEGHI11-19426-TWO8/8/201111-19426-TWO731.328/8/2011KingaBSzulkowskiListPartieswawbke2:11-bk-19426708/08/201104/23/2013StandardDischarge11/08/2011303891SUBHASHNIKUMARBR2/23/101Friedland,Brooks(db)809.30wawbke2:10-bk-11864702/23/201006/14/2010StandardDischarge05/27/201030932PARKSIDEREALTYChap7filedon6/25/09Taing,KimHong821.45(db)wawbke2:09-bk-16269706/25/200910/05/2009StandardDischarge09/30/2009AGENDA ITEM #6. b)
12855LUKEDUNCKLEY14-40768-BDLFILED2/17/14-830.47DISCHARGED5-2744.25254CANDLEWOODIIHOA12/06/13Closedaccountduetocutandcap.938.6$Hasn’thadanyactivityforseveralyears.IttmeterforanewdevelopementcommonareathathasnoHOAormanagementcompany.Uncollectable.239321PENNYTOBACCOetPennyTobaco,shefiledChap13on939.962/20/08.Willhaveattyfaxpaperwork.CAseNumber08-10919Filed1/5/2010.ReopenpreviousBRaccount23932.40044RICHARDFINN11-186367/21/201111-1$636-TWD955.53RichardMFinnandDawnLFinnCasetype:bkChapter:13Asset:YesVol:vJudge:TimothyWDoteDatefiled:07/21/2011Dateoflastfiling:529881MATHEWANDJERIMOORE/BRACCOUNT1O-19793-kaoMatthewLaytonMoore997.48andJeriLeeMooreListPartieswawbke2:1O-bk-197931308/19/201001/07/2016StandardDischarge12/09/201533372ROBERTMONTEMAYORBR13-17051-MLB8/1/2013Discharged1,061.472/20/2014RobertDecanayMontemayorandAnaVillafuerteMontemayorListPattieswawbke2:13-bk-17051708/01/201303/04/2014Standard433291SAVANNAHATTHEPARKHOA11-20599-TWD9-6-20111,070.65DISHCARGED12/8/2011.39139DERRICKWALKERWalker,DerrickArthur(db)wawbke1,146.732:15-bk-14939708/14/201503/02/2016StandardDischarge02/10/2016280051PETERWOODBRIDGE12-16346-TWD6/18/201212-16346-1,312.77TWDPeterWWoodbridgeandLindaFWoodbridgeCasetype:bkChapter:7Asset:NoVol:vJudge:TimothyW.Dore53801DIMINICRICCEHICase#14-42312-Dischargegranted1,654.547/28/171/23/isCASEDENIED.30DAYSTOREFILEORCASEDISMISSED.6/5/2015-refiledandconfirmed.43329SAVANNAHATTHEPARKHOA11-20599-TWD9-6-20112,373.68DISHCARGED12/8/2011.AGENDA ITEM #6. b)
73001CANDACEHALLThebankruptcyonthisaccountwillbe2,471.85writtenoff.Chap13filed9/10/07.Case#07-14260-KAO.49631MARGARETANDDONSCHUMSKYFORMERLYSTIFFYSBARANDGRILL-2,869.77garbageonly.Lienrightsexpired.34514JOHNT+PAMELASSUNDERLAND15-13151-MLBCHAPTER13NOT4,482.15DISCHARGEDASOF1/19/1636,436.64AGENDA ITEM #6. b)
1
CITY OF RENTON, WASHINGTON
RESOLUTION NO. _______
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE
MAYOR AND CITY CLERK TO ENTER INTO AN INTERLOCAL AGREEMENT WITH THE
CITIES OF BELLEVUE, EVERETT, LAKE FOREST PARK, SEATTLE, AND TACOMA TO
JOIN THE WASHINGTON MULTI‐CITY BUSINESS LICENSE AND TAX PORTAL
AGENCY, D/B/A FILELOCAL, AS A PRINCIPAL CITY.
WHEREAS, the State Legislature enacted EHB 2005 during the 2017 legislative session
which requires cities to partner with the Washington State Department of Revenue
(“Department of Revenue”) to utilize the Washington State Business Licensing System (“BLS”)
within five years, but allows for an exception if cities partner with the Multi‐City Business and Tax
License Portal Agency, d/b/a FileLocal (“FileLocal”), by July 1, 2020; and
WHEREAS, BLS is a computerized portal operated by the Department of Revenue for
businesses to apply for and renew business licenses in one place regardless of how many licenses
were applied for or renewed; and
WHEREAS, FileLocal is the interlocal agency built and operated by the cities of Seattle,
Bellevue, Everett, and Tacoma for the purpose of providing a “one stop shop” computerized
portal for businesses to not only apply for and renew business licenses, but also for businesses
to pay Business & Occupation taxes, regardless of which cities or how many cities within which a
business generates their revenues; and
WHEREAS, FileLocal allows for the addition of new “principal cities,” which members have
voting rights, or “subscriber cities,” which members do not have voting rights; and
WHEREAS, the principal cities help with the management of FileLocal and also sit on the
executive board as voting members; and
AGENDA ITEM # 8. a)
RESOLUTION NO. _______
2
WHEREAS, the City of Lake Forest Park joined FileLocal in 2017 as a principal city; and
WHEREAS, the City of Renton desires to join FileLocal as a principal city in order to
participate in the decision making for the agency and to allow businesses which operate in
Renton to use the FileLocal portal;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO
RESOLVE AS FOLLOWS:
SECTION I. The Mayor and City Clerk are hereby authorized to enter into an interlocal
agreement with the cities of Bellevue, Everett, Lake Forest Park, Seattle, and Tacoma to join
FileLocal as a principal city.
SECTION II. Attached hereto as Exhibit “A” and incorporated by this reference is the
Washington Multi‐City Business License and Tax Portal Agency Interlocal Agreement, including a
proposed amendment.
PASSED BY THE CITY COUNCIL this ______ day of _____________________, 2018.
______________________________
Jason A. Seth, City Clerk
APPROVED BY THE MAYOR this ______ day of _____________________, 2018.
______________________________
Denis Law, Mayor
Approved as to form:
______________________________
Shane Moloney, City Attorney
RES.1760:2/26/18:scr
AGENDA ITEM # 8. a)
RESOLUTION NO. _______
3
EXHIBIT “A”
WASHINGTON MULTI‐CITY BUSINESS LICENSE AND TAX
PORTAL AGENCY INTERLOCAL AGREEMENT
AGENDA ITEM # 8. a)
WASHINGTON MULTI-CITY BUSINESS LICENSE AND TAX PORTAL AGENCY
INTERLOCAL AGREEMENT
BY AND BETWEEN THE CITIES OF
BELLEVUE
EVERETT
SEATTLE
and
TACOMA
DATED AS OF MARCH 1, 2014
AGENDA ITEM # 8. a)
TABLE OF CONTENTS
Section Caption Page
Recitals…………………………………………………………………………… 1
1 Creation of Washington Multi-City Business License and Tax Portal Agency…. 2
2 Term of Agreement………………………………………………………………. 2
3 Definitions……………………………………………………………………....... 3
4 Guiding Principles and Goals…………………………………………………….. 6
5 Portal Agency Services…………………………………………………………... 8
6 Portal Agency Powers……………………………………………………………. 10
7 Executive Board: Composition and Operation…………………………………... 11
8 Conversion of Status of Participating Cites; Addition of New Principals or
Subscribers………………………………………………………………………..
15
9 Tax and Finance Operations Committee…………………………………………. 16
10 Portal Agency Staffing…………………………………………………………… 17
11 Portal Agency Manager…………………………………………………………... 18
12 Assignment of Portal Services Contract From Seattle to Portal Agency………… 19
13 Budget; Cost Allocation; Capital Cost Recovery Charges; Payment of Charges;
Delinquencies; Reserve Funds……………………………………………………
19
14 Retained Authority and Responsibility of Participating Agencies………………. 23
15 Ownership of Property…………………………………………………………… 23
16 Merger or Consolidation, or Sale of All or Substantially All Assets…………….. 24
17 Withdrawal by, or Termination of, a Principal…………………………………... 24
18 Amendment of Agreement………………………………………………………. 25
19 Termination of Agreement; Dissolution of Agency……………………………… 25
20 Dispute Resolution……………………………………………………………….. 26
21 Insurance…………………………………………………………………………. 27
22 Indemnification and Hold Harmless……………………………………………... 27
23 Intergovernmental Cooperation………………………………………………….. 28
24 Notice…………………………………………………………………………….. 29
24 Venue…………………………………………………………………………….. 29
26 Filing……………………………………………………………………………... 29
27 No Third Party Beneficiaries…………………………………………………….. 29
28 Severability………………………………………………………………………. 30
29 Ratification……………………………………………………………………….. 30
30 Execution, Counterparts and Effective Date……………………………………... 30
List of Exhibits…………………………………………………………………... 32
A Proposed 2014 Portal Agency Budget Summary…….…………………………... 33
B 2015-2020 Estimated Portal Agency Operating Budget Summary……………… 35
C Capital Cost Recovery Charges………………………………………………...... 37
D Calculation of New Participant Capped Cost Increment and
New Participant Labor Cost Increment…………………………………………...
38
AGENDA ITEM # 8. a)
WASHINGTON MULTI-CITY BUSINESS LICENSE AND TAX PORTAL AGENCY
INTERLOCAL AGREEMENT
THIS AGREEMENT, incorporating all exhibits hereto, is entered into by and between the Cities
of Bellevue, Everett, Seattle and Tacoma (collectively, the “Principals”) pursuant to the
Interlocal Cooperation Act Ch. 39.34 RCW and has been authorized by the legislative body of
each Principal.
RECITALS
WHEREAS, each of the Principals is a city, a general purpose municipal corporation authorized
by state law to issue local business licenses and collect a variety of local taxes; and
WHEREAS, the Principals seek to make it easier and more efficient for businesses to apply for
local business licenses and file local taxes, while retaining local control over local licensing and
tax collection functions and policies; and
WHEREAS, the Principals seek to accomplish these goals by jointly facilitating the creation of
an internet web application gateway (the “Portal”) where tax collection and business licensing
functions can be collectively administered, and where businesses operating in multiple cities can
use a “one-stop” system for tax payment or business license application filing; and
WHEREAS, the Principals have engaged in extensive outreach with other cities, state legislators,
taxpayers and the business community to understand the interests of these stakeholders in
relation to development of the Portal; and
WHEREAS, the creation of an intergovernmental entity, in the form of a governmental nonprofit
corporation whose members are Principals to oversee the operation of the Portal will enable each
Principal to participate in management of the Portal, provide economies of scale to participating
cities, and ensure continued control by each Principal of its tax and licensing policy and local tax
collections; and
WHEREAS, the collection of local taxes is an exclusively governmental activity of each of the
cities party to this Agreement; and
WHEREAS, the creation of an intergovernmental entity as described in this Agreement will
enable the Principals to carry out this exclusively governmental activity as a joint
instrumentality; and
v. 11.4.13 1
AGENDA ITEM # 8. a)
WHEREAS, it is anticipated that additional cities will elect to use the Portal over time, and that
some may wish to do so as subscribers of the Portal’s services rather than as principals; and
WHEREAS, The City of Seattle has provided start-up funding for the development of the Portal
and has conducted a competitive procurement process in which staff from each of the Principals
participated with Seattle staff in selecting a preferred vendor to provide portal development,
hosting and maintenance services; and
WHEREAS, The City of Seattle has entered into a contract with the preferred vendor, and the
vendor has begun work to develop the Portal with continued input from staff from each of the
Principals;
NOW THEREFORE, in consideration of the promises and agreements contained in this
Agreement and subject to the terms and conditions set forth, it is mutually understood and agreed
by the Parties as follows:
SECTION 1. CREATION OF WASHINGTON MULTI-CITY BUSINESS LICENSE
AND TAX PORTAL AGENCY.
The Washington Multi-City Business License and Tax Portal Agency, (“PORTAL AGENCY”)
is hereby created as authorized by the Interlocal Cooperation Act (Ch. 39.34 RCW), and shall be
a municipal instrumentality of the Principals, jointly organized by the Principals as a nonprofit
corporation under Chapter 24.06 RCW as expressly authorized by RCW 39.34.030(3)(b). The
Principals each assign to PORTAL AGENCY the responsibility for overseeing the development,
operation and maintenance of an internet web application gateway to administer city business
licensing and tax collection functions as exclusively governmental activities, all as described
herein.
SECTION 2. TERM OF AGREEMENT.
This Agreement shall have an initial term of approximately five years, ending on December 31,
2019, (the “Initial Term”), and shall thereafter be perpetual, subject to the termination provisions
in Section 19 of this Agreement. During the Initial Term no Principal may withdraw from the
Agreement, provided that a Principal may convert or be converted to Subscriber status as
provided in Sections 8.a, 13.d and 13.k, and may upon action of the Executive Board be
terminated from participation in the Agreement as provided in Section 13.k.
v. 11.4.13 2
AGENDA ITEM # 8. a)
SECTION 3. DEFINITIONS.
a. Agreement. The “Agreement” is this interlocal agreement, as it may hereafter be
amended or modified, together with all exhibits and appendices hereto, as they may hereafter be
amended or modified.
b. Articles of Incorporation. The “Articles of Incorporation” or “Articles” are terms
defining aspects of the PORTAL AGENCY corporate formation under 39.34.030(3)(b) and
consistent with RCW 24.06.025, as they may hereafter be amended by the Executive Board.
c. Board Member. A “Board Member” or “Executive Board Member” is the
individual representing a Principal on the Executive Board, whether the Chief Financial Officer
of such Principal or his/her designated alternate.
d. Business and Occupation Taxes. “Business and Occupation Taxes” are Gross
Receipt Taxes imposed by a Participating City as an exclusively governmental activity
authorized by state law and as defined in RCW 35.102.030.
e. Business Licenses. “Business Licenses” are licenses required to be obtained by
businesses in order to operate within a Participating City, consistent with state law.
f. Bylaws . “Bylaws” as adopted and amended from time to time by the Executive
Board shall govern the operations of the PORTAL AGENCY Executive Board, Operations
Committee, and the officers thereof.
g. Capital Cost Recovery Charge. The “Capital Cost Recovery Charge” is an annual
fee charged to all Participating Cities other than the City of Seattle, for the purposes of
reimbursing Seattle for a portion of the funding it provided to pay for start-up of the PORTAL
AGENCY, as further described in Section 13.j.
h. Capped Costs. “Capped Costs” means all items in the PORTAL AGENCY
budget excluding:
i. Labor Costs unrelated to increases in full or partial staff positions;
ii. Costs payable pursuant to the Portal Services Contract with the Vendor;
iii. State Auditor’s Office Audit costs;
iv. Accounting services;
v. Insurance;
vi. Bank fees;
vii. Any unanticipated expenses outside the normal course of business, for
example, costs of litigation or damages, uninsured losses, tax or other
liabilities resulting from a change in law, and events of force majeure (e.g.
fire, explosion, accident, volcanic eruption, flood, epidemic, civil
disturbance).
i. CPI-U Limit. “CPI-U Limit” means the percentage increase (or decrease) equal
to the percentage increase (or decrease) year to year in the Consumer Price Index – Urban for the
Seattle/ Tacoma/Bremerton metropolitan area, April –April, calculated by the Federal Bureau of
Labor Statistics, or its successor index.
v. 11.4.13 3
AGENDA ITEM # 8. a)
j. Executive Board. The “Executive Board” is the body described in Section 7 and
shall be the governing body of the PORTAL AGENCY.
k. Gross Receipts Taxes. “Gross Receipts Taxes” are taxes imposed by Participating
Cities which are based on the gross receipts of certain businesses, specifically to include
Business and Occupation Taxes as defined by RCW 35.102.030 as well as other taxes imposed
by Participating Cities on utilities or businesses that are collected on basis of such gross receipts
in accordance with applicable law. For purposes of this Agreement, Gross Receipts Taxes also
includes square footage taxes imposed by a Participating City for the act or privilege of doing
business in that city and calculated based on the amount of space occupied and used for those
business activities within that city.
l. Initial Term. The “Initial Term” is the period from the effective date of this
Agreement through December 31, 2019.
m. Labor Costs. “Labor Costs” include salary, benefits and other compensation
provided to Portal Agency employees (if any) and/or loaned staff.
n. Licensees. “Licensees” are businesses or individuals that apply for a Business
License from a Participating City or Cities using the Portal.
o. Manager. The “Manager” is the chief operating officer for PORTAL AGENCY
appointed by and serving at the pleasure of the Executive Board.
p. New Participant Capped Cost Increment. The “New Participant Capped Cost
Increment” is an amount calculated each budget period to identify the maximum amount by
which Capped Costs may increase in the Executive Board approved draft or final budget for such
period without unanimous approval of the Executive Board Members representing all Original
Principals, as further described in Section 13.b.iv.1 and Exhibit D.
q. New Participant Labor Cost Increment. The “New Participant Labor Cost
Increment” is an amount calculated each budget period to identify the maximum amount by
which Labor Costs may increase to provide for additional full or partial staff positions in the
Executive Board approved draft or final budget for such period without requiring unanimous
approval of the Executive Board Members representing all Original Principals, as further
described in Section 13.b.iv.2 and Exhibit D.
r. Operations Committee. The “Operations Committee” or “Tax and Finance
Operations Committee” is the committee described in Section 9.
s. Original Principals. The Original Principals are those four cities initially signing
this Agreement: the cities of Bellevue, Everett, Seattle and Tacoma.
t. Participating Cities. All Principals, and all Subscribers, as they may be so
constituted from time to time, are collectively referred to as the “Participating Cities” or
“Participants,” and individually referred to as a “Participating City” or “Participant.”
u. Population. “Population” is the residential population of a City, according to the
most recent annual report issued by the State Office of Financial Management each year
determining the population of each city for purposes of taxation and allocation of certain state
shared revenues in the following calendar year.
v. 11.4.13 4
AGENDA ITEM # 8. a)
v. Portal. The “Portal” is an internet web application gateway owned, operated and
maintained by the Vendor under contract with the PORTAL AGENCY that affords Taxpayers
and businesses a single access point through which they may apply for business licenses from,
and pay taxes and fees to, Participating Cities, and receive information related to these functions.
w. PORTAL AGENCY. “PORTAL AGENCY” means the Washington Multi-City
Business License and Tax Portal Agency.
x. Portal Operations Policy. The “Portal Operations Policy” is a separate document
adopted by Supermajority Vote of the Executive Board, as it may be amended from time to time,
which describes how data will be shared between the Participating Cities and the PORTAL
AGENCY, and sets forth operating procedures and rules for the Portal.
y. Portal Services Contract. The ‘Portal Services Contract” is that certain contract
dated as of September 6, 2013 between The City of Seattle and eGov Systems, a Louisiana
corporation, to develop software for, and host the Portal operations. The Portal Services
Contract is to be assigned to the PORTAL AGENCY by The City of Seattle pursuant to Section
12 of this Agreement.
z. Principal. A “Principal” is a general purpose municipal corporation formed as a
city under the laws of the state of Washington which imposes a Business and Occupations Tax
and which has accepted the terms of and is a party to this Agreement and has paid its share of
initial costs as may be required by the Executive Board as a condition to becoming a Principal.
Principals shall receive services offered by the PORTAL AGENCY according to such terms and
conditions as may be established by the Executive Board.
aa. Representative. The term “Representative” refers to the individual representing a
Principal or a Subscriber on the Operations Committee, or his/her designated alternate.
bb. Simple Majority Vote. A “Simple Majority Vote” of the Executive Board means
a majority (more than 50%) of the votes of the Board Members present constituting a quorum,
with each Board Member that is present and voting having one vote.
cc. Subscriber. A “Subscriber” is a general purpose municipal corporation, formed as
a city under the laws of Washington which has agreed to pay the PORTAL AGENCY for
services according to such terms and conditions as may be established by the Executive Board
and evidenced by separate contract between the PORTAL AGENCY and such entity. A
Principal may convert or be converted to Subscriber status as provided in Sections 8, 13.d and
13.k and a Subscriber may convert to a Principal as described in Section 8.
dd. Supermajority Vote. A “Supermajority Vote” means Executive Board approval
of an item accomplished by securing affirmative votes of not less than sixty-six percent (66%) of
all voting Board Members of the Executive Board in number, and not less than sixty-six percent
(66%) in number of the Original Principals.
ee. Taxpayers. “Taxpayers” are businesses subject to local city taxes imposed by a
Principal or Subscriber, payment of which is or can be administered by the Portal.
v. 11.4.13 5
AGENDA ITEM # 8. a)
ff. Transaction. A “Transaction” is a payment or filing for a Business License, or a
payment or filing of an online tax form (where multiple taxes filed on the same online tax form
are counted as a single Transaction), made on the Portal by a business to a Participating City;
provided, however, that where historical actual Transactions counts are to be used (rather than
payments and transactions made on the Portal), then Transactions includes the total actual
Business License filings and Gross Receipts Tax filings (where multiple taxes filed on the same
tax form are counted as a single Transaction) for the Participating City over the applicable
period. The Executive Board may refine this definition from time to time by amending the Portal
Operations Policy in order to accommodate expansion of services offered by the Portal or to
address other issues.
gg. User Fees. “User Fees” are fees and charges imposed on businesses, Licensees or
Taxpayers per Executive Board approval as part of PORTAL AGENCY’s budget approval
process.
hh. Vendor. The Vendor is eGov Systems, a Louisiana corporation, which through
the Portal Services Contract is providing services to develop, establish, host, own and maintain
the Portal, associated online data storage and services. The Vendor has ownership of the Portal.
The term Vendor shall also include any successor in interest to eGov Systems or any successor
firm(s) or agency(s) with which the PORTAL AGENCY may contract to provide Portal
development, hosting, maintenance, and associated online data storage and services.
SECTION 4. GUIDING PRINCIPLES AND GOALS.
a. Guiding Principles of PORTAL AGENCY. The Principals intend that the
PORTAL AGENCY actions be guided by the following guiding principles:
i. Local Control – The PORTAL AGENCY will seek to respect and preserve
each Participating Cities’ authority to set local tax policies.
ii. Integrity – The PORTAL AGENCY will be honest, truthful and
straightforward.
iii. Accountability – The PORTAL AGENCY will be responsible for its actions
and decisions, a good steward of public funds and transparent in its
operations.
iv. Flexibility / Adaptability – The PORTAL AGENCY will strive to nimbly
respond to a changing business, technology and policy environment.
v. Security – The PORTAL AGENCY will at all times seek to safeguard
Taxpayer, Licensee and Participating City data.
vi. Accessibility – The PORTAL AGENCY will seek to be accessible and
responsive to Taxpayers, Licensees and Participating Cities.
vii. Affordability – The PORTAL AGENCY will seek to be affordable to both
Participating Cities and businesses and taxpayers using the Portal. Also, fees
v. 11.4.13 6
AGENDA ITEM # 8. a)
and charges will be structured so that the addition of new Cities using the
Portal does not impose additional costs on prior Participating Cities.
b. Goals of the PORTAL AGENCY. The Principals acknowledge and support the
following goals which they seek to accomplish by this Agreement and creation of the PORTAL
AGENCY:
i. Taxpayers and Licensees utilizing the Portal will have a seamless, transparent,
user-friendly and efficient experience.
ii. It will be easy and timely for Taxpayers and Licensees to access
knowledgeable staff at each Participating City to respond to tax or licensing
questions.
iii. The Portal will have error-free data collection, transmittal and tax payment
allocation as between Participating Cities.
iv. There will be local control and oversight of tax collections and tax policy.
v. Participating Cities will be accountable for the accuracy and timeliness of
information they provide to the PORTAL AGENCY and for their customer
service response.
vi. Decision-making will by jointly exercised by the Principals through the
Executive Board.
vii. The PORTAL AGENCY will seek to balance the interests of information
technology, treasury, finance and tax staff within Participating Cities in the
development of the Portal’s capabilities and operating rules.
viii. The PORTAL AGENCY will comply with all legal requirements, including
but not limited to public record-keeping, public meetings, public records,
security, and audit requirements.
ix. The PORTAL AGENCY will be able to accommodate additional city partners
as Principals or Subscribers over time, and be able to process additional types
of local taxes and licenses over time.
x. The PORTAL AGENCY will support the ability to maximize use of the Portal
by Taxpayers and Licensees so that Participating Cities do not need to
replicate the Portal’s services.
xi. The PORTAL AGENCY will maximize compatibility with Participating
City’s systems of record for data storage and processing.
xii. The PORTAL AGENCY will coordinate with the state Department of
Revenue.
xiii. The PORTAL AGENCY will be a cost effective solution for Participating
Cities.
v. 11.4.13 7
AGENDA ITEM # 8. a)
SECTION 5. PORTAL AGENCY SERVICES.
a. Generally. The PORTAL AGENCY has the responsibility and authority for
overseeing the Vendor’s contractual responsibilities to develop, own, operate, maintain and
manage the Portal and for managing the operations of the PORTAL AGENCY. It is expressly
contemplated that this scope of services includes:
i. The implementation, operation and maintenance of replacement or upgrades
of the Portal as necessary or appropriate.
ii. The development and adoption of rules for access, use and maintenance of the
Portal by City Participants, Taxpayers and Licensees.
iii. Expansion of the scope of services offered through the Portal if approved per
Subsection 5.c below.
iv. Other responsibilities reasonably necessary for the development, operation
and maintenance of the Portal.
v. Other related or ancillary services.
b. Limitation on Authority. The PORTAL AGENCY shall have no authority to set
tax rates or tax classifications for Participating Cities, to set local tax policy, tax rules, deductions
or exemptions; or take enforcement action on behalf of any Participating City. The PORTAL
AGENCY is created by the Principals to manage the Participating Cities’ joint participation in the
facilitation of an exclusively governmental activity, specifically, the collection of certain local
taxes.
c. Expansion of Scope of Services. The Portal will be initially established with the
capability to handle payment of Gross Receipts Taxes and filing of applications for Business
Licenses. PORTAL AGENCY may provide additional capability to pay additional types of city
taxes or application for additional types of city licenses through the Portal only upon approval of
a Supermajority Vote of the Executive Board; provided, however, that the cost of service
expansions will be allocated only to those Participating Cities electing to participate in such
services.
d. Requirement of Participating Cities to Utilize Services of Portal.
i. Gross Receipts Tax Collection Services: Participating Cities shall be required
to offer their Taxpayers the option of paying Gross Receipts Taxes through
the Portal, if and to the extent such taxes are imposed by a Participating City.
ii. Other Services: Except as required by Subsection 5.d.i above, no
Participating City shall be required to utilize any other service of the Portal
without the prior written approval of such City.
iii. Provision of Alternate Collection Options by Participating Cities. Nothing in
this Agreement shall be interpreted to preclude a Participating City from
v. 11.4.13 8
AGENDA ITEM # 8. a)
offering its Taxpayers or businesses additional means (other than through the
Portal) for acquiring Business Licenses or paying any local taxes, including
but not limited to payment of Gross Receipts Taxes.
iv. Operating Policies and Rules for Use of Portal. In order to protect sensitive
Taxpayer data, and assure the relationship between the Portal and
Participating Cities remains fully functional and secure, the Executive Board
shall adopt a Portal Operations Policy. It is understood and agreed that the
access and use of the Portal by any Principal or Subscriber is conditioned on
that party consenting in writing to comply with the Portal Operations Policy.
Such consent shall be signified by signature of the chief executive officer of
each Participating City, or his/her designee, and shall not require further
legislative action of the Participating City. The Portal Operations Policy will
be regularly reviewed and updated by the Executive Board as necessary or
appropriate.
e. Additional Activities of the PORTAL AGENCY. At the discretion of the
Executive Board, the PORTAL AGENCY may, in addition to the services described in Section
5.a above:
i. Participate in forums for Participating Cities to discuss tax policy issues
(including but not limited to the Association of Washington Cities Tax Policy
Advisory Group or its successor in interest);
ii. Provide education to Taxpayers and Businesses regarding the Portal and the
PORTAL AGENCY, and work to increase transparency about Participating
City tax policies and activities;
iii. Provide a forum for businesses and others to provide feedback and
suggestions on the use and functionality of the Portal and the taxes and
licenses administered through the Portal; and
iv. Provide a forum for discussion, coordination and execution of coordinated
enforcement activities, provided that the PORTAL AGENCY itself is not
authorized to take any tax collection or license fee enforcement actions on
behalf of a Participating City. The PORTAL AGENCY shall not use or
authorize the use of the Portal or such forum for the purpose of assisting a
campaign for election of any person to any office or for the promotion of or
opposition to any ballot proposition.
v. The PORTAL AGENCY shall coordinate with the Washington State
Department of Revenue with regard to the Portal’s operations and
functionality to minimize the need for Taxpayers and Licensees to enter data
on the Portal and any separate state tax payment and licensing systems.
v. 11.4.13 9
AGENDA ITEM # 8. a)
SECTION 6. PORTAL AGENCY POWERS.
Through its Executive Board, the PORTAL AGENCY shall have all powers allowed by law for
interlocal agencies created under RCW 39.34.030 and Chapter 24.06 RCW, as authorized,
amended, or removed by the Executive Board, as provided for in this Agreement and including
but not limited to the following:
a. Recommend action to the legislative bodies of the Participating Cities;
b. Review and approve budget expenditures for the PORTAL AGENCY;
c. Establish policies for expenditures of budget items for the PORTAL AGENCY;
d. Review and adopt a personnel policy for the PORTAL AGENCY (if applicable);
e. Review and approve operating, Portal use, and financial policies for the PORTAL
AGENCY;
f. Establish a fund or special fund or funds as authorized by RCW 39.34.030 for the
operation of the PORTAL AGENCY;
g. Conduct regular and special meetings as may be designated by the Executive
Board consistent with the state Open Public Meetings Act (Ch. 42.30 RCW) as now or hereafter
amended;
h. Maintain and manage records in accordance with the state Public Records Act
(Ch. 42.56 RCW) as now or hereafter amended, and other applicable state and federal laws and
regulations;
i. Determine what services shall be offered and under what terms they shall be
offered, consistent with Section 5.
j. Retain and terminate a Manager;
k. Create committees to review and make recommendations and carry out such
functions and responsibilities as the Board may expressly provide;
l. Approve strategic plans;
m. Approve the addition of new Principals and new Subscribers and the terms of
their participating in PORTAL AGENCY and receipt of PORTAL AGENCY services;
n. Enter into agreements with third parties for goods and services necessary to fully
implement the purposes of this Agreement;
o. Establish fees and charges for services provided to Participating Cities or other
parties, including but not limited to Taxpayers and Licensees using the services of the Portal;
p. Direct and supervise the activities of any committee established and/or any
advisory boards, and the Manager;
q. Accept grants of funds from any federal, state, local or private agencies and
receive and distribute such funds;
r. Receive all funds allocated to PORTAL AGENCY by Participating Cities;
v. 11.4.13 10
AGENDA ITEM # 8. a)
s. Purchase, take, receive, lease, take by gift, or otherwise acquire, own, hold,
improve, use and otherwise deal in and with real or personal property, or any interest therein, in
the name of PORTAL AGENCY;
t. Sell, convey, lease, exchange, transfer, and otherwise dispose of all of its property
and assets;
u. Sue and be sued, complain and defend, in all courts of competent jurisdiction in
PORTAL AGENCY’s name;
v. Make and alter bylaws for the administration and regulation of its affairs; and
w. Any and all other lawful acts necessary to further PORTAL AGENCY’s goals
and purposes.
x. Notwithstanding the foregoing, the PORTAL AGENCY shall not have the
authority to issue debt in its own name.
The Portal Agency, as a joint instrumentality of its municipal corporation members under
Chapter 39.34 RCW, shall have no powers or authority that are not held by Washington cities.
SECTION 7. EXECUTIVE BOARD: COMPOSITION AND OPERATION.
a. Composition. The Executive Board shall be composed of one (1) Board
Member from each Principal, plus at least one (1) non-voting Board Member representing
PORTAL AGENCY Subscribers. Such representatives are referred to as a Board Member or
Board Members of the Executive Board.
b. Powers. The Executive Board shall have final decision making authority upon all
policy issues and shall exercise the powers described in Section 6. The Executive Board may
delegate responsibility for execution of Executive Board policies and directives and for day-to-
day operational decision-making to the Manager, including the hiring and supervision of
additional staff positions authorized by the Executive Board, subject to the terms of Section 11.
c. Limitation on Total Number of Voting Board Members on Executive Board;
Allocation of Executive Board Positions Among Multiple Principals. Notwithstanding the terms
of Subsection 7.a, at no time shall the number of Executive Board Members exceed fifteen (15)
voting members, and for so long as it remains a Principal, no Original Principal shall be required
to share representation of its Board seat with another Principal. If the addition of a new Principal
would cause the number of Executive Board voting Board Members to exceed fifteen (15), then
the Principals with the smallest Population shall share a single Board Member position in order
to reduce the number of Executive Board voting Board Members to fifteen (15); provided that, if
over five (5) Principals would be represented by a single Board Member, then an additional
v. 11.4.13 11
AGENDA ITEM # 8. a)
Board seat shall be converted for shared representation, to be shared by the Principals with the
smallest Population. In the event that the number of Principals sharing representation is not
evenly divisible by the number of shared seats, then the Principals with the larger Population
shall be given the benefit of the allocation (e.g., if 7 Principals are to share 2 seats, then the 3
Principals with the largest Population (within the group sharing representation) shall share one
(1) seat, and the four (4) Principals with the smallest populations shall share the second seat). If
the number of Principals exceeds 59, then the same process as described above shall be repeated,
that is, moving to a maximum of six (6) Principals sharing a seat, and so on (seven (7) Principals
sharing a seat, etc.) as necessary to accommodate additional Principals.
d. Method of Determining Selection of Subscriber Representative(s) or Shared
Voting Board Member(s). Subscribers shall initially share one (1) non-voting seat on the
Executive Board. The Executive Board may by Supermajority Vote increase the number of non-
voting seats for Subscribers, and may define how such additional seats are allocated among
Subscribers. Unless otherwise described in the Bylaws, Subscribers sharing representation of the
non-voting Board Member shall determine the means by which to select their Executive Board
representative and shall inform the Board of their choice at the time of the biennial Executive
Board Officer elections (or at such other times as may be required in the event of a vacancy).
Similarly, those Principals sharing representation on a single Executive Board seat shall
determine the means by which to select the position, and shall make the determination at the
same time as the biennial Executive Board Officer elections (or at such other times as may be
required in the event of a vacancy).
i. Unless otherwise described in the Bylaws, in the event that Subscribers or
Principals are unable to agree on a shared representative or Board Member on
a timely basis, the remaining Executive Board Members may make the
selection for them by a vote of the Executive Board.
ii. Individuals representing multiple Subscribers or Principals are expected to
confer with the Cities they represent.
e. Qualifications to Serve on Executive Board. To serve on the Executive Board, as
either a voting or non-voting Board Member, a person must be the appointing city’s Chief
Financial Officer (e.g., finance director or city treasurer, or equivalent), or their deputy or
equivalent. An individual representing multiple cities on a single Executive Board seat, or
serving as the non-voting Subscriber representative shall similarly hold such a position within
one of the Subscriber cities sharing such representation.
f. No Compensation for Serving on Executive Board. All Executive Board
Members and their alternates shall serve without compensation from the PORTAL AGENCY.
However, the PORTAL AGENCY may pay for or reimburse Executive Board Members and
alternates for out-of-pocket costs related to service on the Executive Board.
v. 11.4.13 12
AGENDA ITEM # 8. a)
g. Term of Office; Vacancies. Executive Board Members shall serve on the
Executive Board for so long as they hold a position that qualifies them for the seat, unless the
city they represent elects to appoint another individual. Executive Board Members representing
multiple Cities (either as a Principal or Subscriber) shall serve until the next Board Officer
elections. Any vacancies shall be promptly filled by the appointing Principal, group of
Principals, Subscribers, or the Executive Board (per Section 7.d.i), as appropriate.
h. Alternates. Each Executive Board Member shall have a single alternate
designated in writing. Alternates must meet the same qualification as the designated Board
Member or have similar financial expertise and be in a management position within their city.
i. Quorum. A simple majority of the Board Members (or their alternates) in number
(excluding any Board Member which per Section 17 has given notice of withdrawal or which has
been terminated by vote of the Executive Board) shall constitute a quorum of the Executive
Board for purposes of taking action.
j. Voting. The Executive Board shall strive to operate by consensus. All Executive
Board decision on items not listed in Section 7.k shall require a Simple Majority Vote for
approval. A Board Member may not split his or her vote on an issue. No voting by proxies or
mail-in ballots will be allowed. Voting by a designated Alternate is not considered a vote by
proxy. A Board Member representing a Principal that has given notice of withdrawal or which
has been terminated by vote of the Executive Board shall be authorized to cast votes at the
Executive Board only on budget items to be implemented prior to the withdrawal or termination
date.
k. Items Requiring a Supermajority Vote for Approval:
i. Approval or amendment of the budget or draft budget. (Per Section 13.b.iv,
approval of the draft and final budget or amendments thereto also requires
unanimous approval of the Original Principals in certain instances).
ii. Approval or amendment of user fees and charges.
iii. Approval of the Portal Operations Policy or amendments thereto.
iv. Adoption or amendment of the Bylaws or amendment of the Articles of
Incorporation.
v. A decision to acquire assets, equipment, real or personal property, or bind the
PORTAL AGENCY to pay total or cumulative any contract amounts over
$50,000, provided that, this threshold amount will be indexed on the fifth
anniversary of the formation of the PORTAL AGENCY and every five (5)
years thereafter by the CPI-U Seattle-Tacoma-Bremerton.
vi. Admission of a new Principal.
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vii. Admission of a new Subscriber.
viii. The decision to create an additional non-voting seat for Subscribers on the
Executive Board.
ix. Addition of any staff positions, or partial staff positions, to support PORTAL
AGENCY operations. (Per Section 13.b.iv, approval of funding for increases
in the number of staff positions also requires unanimous approval of the
Original Principals in certain instances).
x. Appointing or removing the Manager.
xi. Merger, consolidation, sale of all or substantially all assets of the PORTAL
AGENCY (See Section 16).
xii. Amendment of the Agreement (except for those amendments requiring
approval of all legislative bodies of the Principals per Section 18).
xiii. Termination or dissolution of the PORTAL AGENCY (See Section 19).
xiv. Any other action actions requiring a sixty six-percent (66%) Supermajority
vote under Chapter 24.06 RCW.
l. Officers. The Executive Board shall have four officers, a Chair, Vice-Chair,
Secretary and Treasurer. It will be the function of the Chair to preside at the meetings of the
Executive Board. The Vice-Chair shall assume this role in absence of the Chair. At the first
meeting of the Executive Board following the effective date of this Agreement, the officers shall
be elected, and shall serve in this capacity through April 1, 2016, whereupon a new Chair and
Vice-Chair shall be elected by the Executive Board. Biennially thereafter, the Executive Board
shall elect a new Chair and Vice-Chair for two (2) year terms commencing each April 1. In the
event of a vacancy in the Chair position, the Vice-Chair shall assume the Chair for the balance of
the term of the departed Chair. In the event of a vacancy in the Vice-Chair position, the
Executive Board shall elect a new Vice-Chair to serve the balance of the term of the departed
Vice-Chair. An officer elected to fill the unexpired term of his or her predecessor shall not be
precluded from serving one or more full annual terms of office following the end of such
unexpired term. Any officer appointed by the Executive Board may be removed by vote of the
Executive Board, with or without cause, in which event the Executive Board shall promptly elect
a new officer who shall serve until the next regular officers’ board term begins. The Executive
Board may appoint persons other than Board Members of the Executive Board to serve as
Secretary and Treasurer of the PORTAL AGENCY. The duties of all officers shall be further
described in the PORTAL AGENCY Bylaws.
m. Staffing. The Manager shall assign agency staff to support the Executive Board
as he or she deems appropriate.
n. Meetings. The Executive Board shall meet as often as it deems necessary and not
less than once a year, at a time and place designated by the Chair of the Executive Board or by a
majority of its Board Members. Not less than fourteen (14) days advance notice of regular
v. 11.4.13 14
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meetings shall be given. Special meetings may be called by the Chair or any two (2) Board
Members upon giving all other Board Members not less than ten (10) days prior notice. In an
emergency, the Executive Board may dispense with written notice requirements for special
meetings, but must, in good faith, implement best efforts to provide fair and reasonable notice to
all Executive Board Members. Board Members (or alternates) may participate in meetings by
telephone conference or equivalent means of voice communication. At all times the Executive
Board shall comply with Ch. 42.30 RCW (Open Public Meetings Act).
o. Articles of Incorporation and Bylaws. Unless otherwise provided in the Articles
and Bylaws or by vote of the Executive Board, upon the request of any Board Member of the
Executive Board, Robert’s Revised Rules of Order shall govern any proceeding of the Executive
Board.
p. Consultation with Operations Committee. It is the intent of this Agreement to
seek the active participation and advice of Participating Cities in the determination of PORTAL
AGENCY policies and management. To the extent practicable, all items to come before the
Executive Board shall have been previously subject to the review, comment and
recommendation of the Operations Committee and the Executive Board shall consider input from
the Operations Committee in its deliberations.
q. Consultation with Businesses, Taxpayers and Participating Cities. Not less than
once each year the Executive Board shall seek input from Taxpayers and Participating Cities for
the purpose of securing feedback and information on the efficiency and effectiveness of the
Portal and PORTAL AGENCY programs.
SECTION 8. CONVERSION OF STATUS OF PARTICIPATING CITIES; ADDITION
OF NEW PRINCIPALS OR SUBSCRIBERS.
a. Loss of Principal Status. As described in Sections 13.d and 13.k hereof, a
Principal shall be converted to Subscriber for failure to approve its share of the budget or for
nonpayment or delinquency in payment of charges and fees. On the date of such conversion,
said former Principal shall:
i. lose its representation on the Executive Board;
ii. lose its right to receive a share of the PORTAL AGENCY assets upon
dissolution of the PORTAL AGENCY;
iii. become subject to payment of charges and fees in accordance with the then
applicable payment formula for Subscribers; and
iv. be bound by the terms of the then current Subscriber service contract.
The conversion of a Principal to Subscriber shall not discharge or relieve any Principal of its
obligations to the PORTAL AGENCY or any other Participating City.
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b. Election to Convert to Subscriber. A Principal may elect to convert to Subscriber
status effective the first day of the next budget period by giving notice of its intent to the
Governing Board not less than eight (8) months in advance of such effective date; provided that,
a Principal may not exercise such election to take effect within the Initial Term. Such
conversion shall be effective as proposed without further action of the Executive Board, barring
any basis for terminating the Principal and action thereon by the Executive Board.
c. New Principals. A city or town otherwise meeting the qualifications of a
Principal in Section 3.z hereof may be admitted to the PORTAL AGENCY as a Principal upon
Supermajority Vote of the Executive Board as required under Section 7.k and its approval and
execution of a document confirm. Similarly, a Subscriber may apply to the Executive Board to
be converted to Principal status. As a condition of becoming a Principal, whether by conversion
or new admission, the Executive Board may require payment or other contributions or actions by
the new Principal as the Executive Board may deem appropriate consistent with the Bylaws and
Portal Operations Policy, and may set such start date for service as it deems appropriate, it being
the intention that the addition of new Principals shall not cause then-existing Principals to incur
additional costs.
d. New Subscribers. The determination of whether to accept Subscribers shall be
made by the Executive Board in a manner similar, and subject to such terms and conditions, as
that for accepting new Principals, it being the intention that the addition of new Subscribers shall
not cause then-existing Principals or Subscribers to incur additional costs.
SECTION 9. TAX AND FINANCE OPERATIONS COMMITTEE.
a. Role and Responsibilities. A Tax and Finance Operations Committee
(“Operations Committee”) shall be established to provide advice and recommendations to the
Executive Board. The Executive Board may determine to direct the Operations Committee to
perform specific responsibilities within Board-defined parameters. The Operations Committee
shall endeavor to promote interagency collaboration, cooperation and information sharing
between PORTAL AGENCY Principals and Subscribers. The Operations Committee shall:
i. Assist in the review and development of Portal Operations Policy and
amendments thereto, Portal development options, proposed new service
options, and such other matters as the Executive Board may direct;
ii. Make reports and recommendations to the Executive Board from time to time
on matters the Operations Committee deems appropriate;
iii. Assist in the review and development of proposed PORTAL AGENCY
budgets;
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AGENDA ITEM # 8. a)
iv. Provide written recommendations with respect to the proposed budget to the
Executive Board at the time the proposed budget is submitted to the Executive
Board;
v. Provide advice, information and recommendations to the PORTAL AGENCY
Manager and staff;
vi. Assist in communications to City Councils, legislators, business community
on PORTAL AGENCY issues;
vii. Reach out to technology staff within their respective Cities for input and
ideas, and to keep them apprised of PORTAL AGENCY issues;
viii. Brief their respective Executive Board Members in advance of Executive
Board meetings.
b. Membership. Membership of the Operations Committee shall include one (1)
Representative from each Principal, appointed by that Principal, plus at least one (1)
representative, appointed by the Executive Board, to represent Subscribers. Each Principal shall
also appoint in writing a designated alternate to serve on the Operations Committee in case of
absence of the primary Representative.
c. Qualification to serve on Operations Committee. Representatives and their
alternates shall be staff from the Principal they represent, with expertise in city tax policy and
administration and/or city financial policy and administration. Persons serving on the Operations
Committee are referred to as Representatives (or alternates) and shall serve without
compensation from the PORTAL AGENCY.
d. Officers, Voting, Meeting Rules. The Operations Committee shall select a Chair
and Vice-Chair from among the membership of the Operations Committee. Each Representative
on the Committee shall have one vote. The meeting rules for the Operations Committee shall be
further defined in the PORTAL AGENCY Bylaws.
e. Staffing. The Operations Committee shall be staffed by the Manager and such
additional agency staffing as the Manager may deem appropriate.
SECTION 10. PORTAL AGENCY STAFFING.
a. The PORTAL AGENCY shall be staffed in such manner as the Executive Board
determines, including but not limited to the use of loaned employees from Principals, consultants
or other service providers, purchase of services from Principals or others, or hiring staff, or any
combination of the foregoing.
v. 11.4.13 17
AGENDA ITEM # 8. a)
b. As described in Section 13.b.iv.2 and Exhibit D, any increase in Labor Costs in
excess of the New Participant Labor Cost Increment requires approval of a Supermajority Vote
of the Executive Board as well as the approval of all Board Members representing all Original
Principals.
SECTION 11. PORTAL AGENCY MANAGER.
a. Portal Agency Manager Appointment, Responsibilities and Authority. The
Executive Board shall be responsible for the appointment and termination of a Manager of the
PORTAL AGENCY, and shall request input from the Operations Committee, or any other
standing committees created by the Executive Board, regarding any proposed appointment. The
Manager shall:
i. Be responsible to the Executive Board and shall advise it from time to time
on a proposed budget and other appropriate matters in order to fully
implement the purposes of this Agreement;
ii. Administer the PORTAL AGENCY in its day-to-day operations consistent
with the policies adopted by the Executive Board;
iii. Appoint persons to fill other staff positions, subject to confirmation by the
Executive Board as the Board may require;
iv. Submit quarterly budget and operation performance reports to the Executive
Board in a form acceptable to the Executive Board;
v. Undertake outreach to Taxpayers, Licensees and businesses, as well as to
Participating Cities on the effectiveness of the PORTAL AGENCY
operations and programs.
vi. Manage and oversee performance of the Vendor and other vendors or
contractors providing services to the PORTAL AGENCY.
vii. Consult in advance with the Operations Committee on issues to come before
the Executive Board, including but not limited to working with the
Operations Committee in the development of the PORTAL AGENCY’s
budget and policies.
b. Qualifications, Retention and Termination. The Manager shall have experience in
technical, financial and administrative fields and his or her appointment shall be on the basis of
merit only. The Manager is an “at will” position and may be terminated from his or her position
as Manager upon the Supermajority Vote of the Executive Board, without cause.
c. Legal Counsel, Accountants and Auditors. Only the Executive Board shall be
authorized to hire or retain legal counsel and independent accountants and auditors. Other
consultants may be designated in such manner as the Executive Board may determine subject to
Sections 6 and 7.
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AGENDA ITEM # 8. a)
d. Contracts and Support Services. Subject to the terms of the Bylaws, the
Executive Board or the Manager with advice of the Operations Committee shall as necessary
contract with appropriate local governments or other third parties for the use of space for its
operations, and for staff and auxiliary services including, but not limited to, records, payroll,
accounting, purchasing and data processing. Notwithstanding the foregoing, only the Executive
Board may approve changes to the Portal Vendor(s) or Portal Vendor Services Contract.
SECTION 12. ASSIGNMENT OF PORTAL SERVICES CONTRACT FROM SEATTLE
TO PORTAL AGENCY.
Promptly following the execution of this Agreement and the filing of such forms with the
Washington Secretary of State as are necessary to incorporate the PORTAL AGENCY as a
nonprofit corporation, The City of Seattle agrees to assign the Portal Services Contract to the
PORTAL AGENCY, together with all rights and responsibilities appurtenant thereto and the
PORTAL AGENCY shall agree to accept such assignment, rights and responsibilities, it being
the intent of the parties to this Agreement that the PORTAL AGENCY shall assume all
responsibility for overseeing and funding the work of the Vendor pursuant to such Portal
Services Contract as soon as practicable following formation of the PORTAL AGENCY.
SECTION 13. BUDGET; COST ALLOCATION; CAPITAL COST RECOVERY
CHARGES; PAYMENT OF CHARGES; DELINQUENCIES; RESERVE FUNDS.
a. Budget Fiscal Year. The budget fiscal year shall be either the calendar year, or
two calendar years as the Executive Board may determine. The “budget period” corresponds to
the fiscal year or years so determined by the Board.
b. Budget Approval. The Manager shall develop the proposed operating budget in
consultation with the Operations Committee. The Manager and Executive Board shall use their
best efforts to meet the budget schedule set forth below, but failure to meet a specified budget
deadline shall not constitute a breach of this Agreement.
i. The Manager shall present a proposed budget to the Executive Board by
no later than May 1 prior to the commencement of the budget period,
together with the Operation Committee’s recommendations with respect to
the proposed budget.
ii. By no later than June 15, the Executive Board shall (1) review and revise
the draft budget as it deems appropriate; (2) approve the draft budget
(including proposed charges to Participating Cities and any user fees to
v. 11.4.13 19
AGENDA ITEM # 8. a)
Taxpayers and Licensees) by Supermajority Vote; and (3) forward same to
Principals. The approved draft budget, and all proposed fees and charges
shall be forwarded to Subscribers no later than July 1.
iii. The final budget shall be adopted by vote of the Executive Board effective
no later than December 31 prior to commencement of the budget period,
after receiving information as to:
1. which Subscribers will be continuing to contract with the
PORTAL AGENCY; and
2. which Principals have or will approve their shares of the PORTAL
AGENCY budget, based on action or information from such
Principals received by the PORTAL AGENCY no later than
December 1.
iv. Vote Required to Approve Budget. Per Section 7.k.i, a Supermajority
Vote of the Executive Board is required to approve the draft and final
budget, provided that unanimous approval of the Executive Board
Members representing all Original Principals shall also be required to
approve any budget or budget amendment that includes:
1. An increase in Capped Costs greater than the maximum amount
allowed per calculation of the New Participant Capped Cost
Increment, as further described in Exhibit D.
2. An increase in Labor Costs to increase the number of full or partial
staff positions greater than the maximum amount allowed per
calculation of the New Participant Labor Cost Increment, as further
described in Exhibit D.
v. 2014 Budget. Notwithstanding the foregoing, the PORTAL AGENCY
budget for the year 2014 will be formally adopted by action of the
Executive Board promptly following incorporation of the PORTAL
AGENCY and need not be submitted for approval by the Original
Principals. The proposed 2014 budget is set forth at Exhibit A. By
approving this Agreement each Original Principal also approves their
contribution to the 2014 budget in an amount not to exceed that shown in
Exhibit A, promptly following the date the PORTAL AGENCY is
incorporated.
v. 11.4.13 20
AGENDA ITEM # 8. a)
c. Payment of Charges. The Board shall determine the timing of payments by
Participating Cities, which shall be set forth in the Portal Operations Policy.
d. Failure of a Principal to Approve Budget Share. Failure of a Principal to approve
its share of the budget before the commencement of the budget period shall result in the Principal
being converted to Subscriber status effective as of the first day of the budget period for which
the budget was not approved.
e. Notification of Final Adopted Budget. Promptly following final adoption of the
budget by the Executive Board, the Manager shall provide notice to all Principals and
Subscribers as to the terms of the final adopted budget, including their share of PORTAL
AGENCY costs, charges and fees, and the payment schedule.
f. Budget Modifications. Modifications to the budget shall be approved by a
Supermajority Vote of the Executive Board (and also unanimous consent of the Original
Principals if required by Section 13.b.iv above) as necessary from time to time to account for
changes in expenditures and revenues.
g. Cost Allocation and Cost Recovery Principles. The PORTAL AGENCY budget
shall be generally allocated between all Participating Cities based on the number of Transactions
processed for each City on the Portal. In years 2014 through 2018, the number of Transactions
for the Original Principals shall be based on 2012 historical actual pre-Portal use Transaction
Counts (set forth in Exhibit A) and the City Transaction Count for any other Participating City
shall be based on the most recent historical data for that City prior to it joining the Portal. From
and after 2019, the number of Transactions allocated to Original Principals shall be based on the
most recent actual annual number of Transactions processed on the Portal for each such City
(thus for 2019, the 2017 actual Transaction count will be used); for other Participating Cities, the
allocation will be determined considering the actual number of Transactions (if the City had
joined before 2019), historical tax and license information, and the experience of Original
Principals as to how quickly businesses have adopted use of the Portal since its launch. The
details of the cost allocation calculation shall be set forth in the Portal Operations Policy.
Nothing in this Agreement shall be construed to prohibit the Executive Board from including
factors in addition to the number of City Transactions in the cost allocation formulas as between
Participating Cities, so long as the primary basis for allocation remains the City Transaction
count.
h. User Fees. The PORTAL AGENCY shall impose such reasonable user fees as
the Executive Board may determine on Taxpayers and Licensees utilizing the Portal to file tax
returns or file business license applications in order to recoup costs of PORTAL AGENCY
v. 11.4.13 21
AGENDA ITEM # 8. a)
operations, the Portal operation and maintenance, reserves and any other PORTAL AGENCY
costs.
i. Estimated Six Year Operating Costs. Exhibit B sets forth a general estimate of
the annual costs to establish and operate the PORTAL AGENCY between 2014 and 2020,
assuming the Original Principals are the only Participating Cities, and includes estimated
payment of Vendor’s charges pursuant to the Portal Services Contract and other estimated
operating costs. This Exhibit is an estimate and is not binding on any of the parties to this
Agreement, nor is it binding on the PORTAL AGENCY.
j. Capital Cost Recovery Charge. In order to reimburse the City of Seattle for
approximately one third of the costs Seattle paid to fund start-up of the Portal Agency, each
Participating City other than the City of Seattle will be charged an annual Capital Cost Recovery
Charge, in an amount described in Exhibit C. Such Charges shall be imposed each year from
and after 2015 until such time as the total Capital Cost Recovery Charges paid reaches
$1,400,000. The Capital Cost Recovery Charges will be paid by Participating Cities to the Portal
Agency and the Portal Agency shall thereafter remit the total annual amount to Seattle. The
Capital Cost Recovery Charge is not considered part of the Portal Agency budget for purposes of
calculating Capped Costs or CPI-U limitations on the growth of such costs.
k. Payment and Delinquencies. Principals shall promptly pay fees and charges
allocable to them. Interest on fees and charges allocable to any Principal not paid when due shall
begin accruing interest immediately at the Federal Reserve Prime Rate as of the date the payment
was originally due, plus 3% per year. The PORTAL AGENCY shall, within seven (7) days of
the due date, send notice to any delinquent Principal and provide a 60-day cure period from the
original due date of the payment. If such fees and interest penalties are not paid in full within 60
days of the original due date, then the Principal delinquent in payment of fees shall upon such
60th day be deemed immediately converted to the status of a Subscriber and subject to penalty as
described in Section 8. In the event a Principal converted to Subscriber status by non-payment
of fees shall not have paid in full all fees and interest owing by six (6) months after the original
due date, then the Executive Board may terminate provision of the PORTAL AGENCY’S
services to that former Principal. After one (1) year, the nonpaying former Principal shall be
deemed to have withdrawn from this Agreement, but the termination of services shall not
absolve the former Principal of its obligation to pay all fees and charges past due, together with
interest.
l. Terms of Subscriber Contracts. Subscriber contracts shall include terms
consistent with these delinquency provisions, that is, interest shall accrue on delinquent
payments at the same rate as provided herein, and service may be terminated if fees and interest
are not paid in full within six months.
v. 11.4.13 22
AGENDA ITEM # 8. a)
m. Reserve Funds. The Executive Board may establish and fund reserve funds to
support operations or capital investments for the PORTAL AGENCY, at levels the Executive
Board determines to be appropriate; provided that general reserve funds may only be used to
support general PORTAL AGENCY operations, maintenance and capital costs and may not be
used in support of developing projects or services that will not be utilized by all Principals; and
provided further, that no Principal shall be required to contribute to special reserves established
exclusively in support of projects or services that the Principal has certified it does not intend to
utilize or make available to its Taxpayers and Licensees.
n. Use of Funds. Consistent with any use imposed on particular funds by statute,
ordinance, contract, this Interlocal Agreement or any bylaws adopted by PORTAL AGENCY,
the PORTAL AGENCY may use any available funds for any purpose authorized by this
Agreement in connection with an authorized project.
SECTION 14. RETAINED AUTHORITY AND RESPONSIBILITY OF
PARTICIPATING AGENCIES.
Each Participating City shall retain the responsibility and authority for its operational
departments and for such equipment and services as are required at its place of operation to
connect to PORTAL AGENCY operations, including but not limited to each Participating City’s
computer and data systems managing processes that provide services the Portal delivers (the
City’s system of record). Each Participating City shall also retain the responsibility and
authority for managing and maintaining the security and privacy of all data that the Participating
City links to the Portal. Inter-connecting equipment and services will not be included in
PORTAL AGENCY’S budget and operational program, except as the Executive Board may
determine.
SECTION 15. OWNERSHIP OF PROPERTY.
a. Ownership of Property. Excepting the Portal which is owned by the Vendor, all
property both real and personal, as well as intellectual property rights or licenses purchased or
otherwise acquired pursuant to or in connection with this Agreement shall be owned or held in
the name of the PORTAL AGENCY; provided, however, that the Executive Board may convey
ownership of specific property, property or use rights.
b. Loaned Property. If any Participating City provides equipment or furnishings for
PORTAL AGENCY’S use, title to the same shall rest with the respective local entity unless that
equipment or furnishing is acquired by the PORTAL AGENCY.
v. 11.4.13 23
AGENDA ITEM # 8. a)
c. Data. Each Participating City shall retain ownership of its own data and property
that may be used in connection with Portal or PORTAL AGENCY operations.
SECTION 16. MERGER OR CONSOLIDATION, OR SALE OF ALL OR
SUBSTANTIALLY ALL ASSETS.
Approval of the merger or consolidation of PORTAL AGENCY with another entity, or the sale
of all or substantially all assets of PORTAL AGENCY, shall require a Supermajority Vote.
SECTION 17. WITHDRAWAL BY, OR TERMINATION OF, A PRINCIPAL.
a. Notice and Timing. Any Principal may withdraw its membership and terminate
its participation in this Agreement by providing written notice to the Executive Board on or
before December 31 in any year, and the Executive Board shall promptly inform all other
Principals of such notice. That withdrawal shall become effective on the last day of the next
calendar year. Notwithstanding the foregoing, no Principal may terminate its participation in this
Agreement effective prior to the end of the Initial Term.
b. Obligations of departing Principal. A Principal who withdraws, is terminated,
changes or is changed to Subscriber status (“departing Principal”) shall hold the remaining
Principals and Subscribers harmless against any resultant increased capital and/or operating costs
allocated to them for the following two (2) budget years (plus the remainder of the current
budget year, if applicable), with respect to any Executive Board approved project (excluding the
initial launch of the Portal) in which the departing Principal is participating or has agreed to
participate prior to notice of withdrawal or notice of change to Subscriber status, but such
obligation shall exclude the cost of any Capital Cost Recovery Charges. Such obligation shall be
reduced to the extent new Principals or Subscribers are allocated these costs that would
otherwise have been chargeable to the departing Principal. After recouping such costs, the
Executive Board may authorize reimbursement to the remaining Principals and Subscribers
based on a depreciated value of the withdrawing or converting Principal’s contribution.
c. Rights of departing Principal. Departing Principals shall have rights to copies of
all data held by the PORTAL AGENCY relating to that Principal’s Taxpayers and Licensee and
other data relating specifically to the Principal.
d. The termination and/or withdrawal of a Principal shall not discharge or relieve
any Principal of its obligations to the PORTAL AGENCY or other Participating Cities.
v. 11.4.13 24
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SECTION 18. AMENDMENT OF AGREEMENT.
This Agreement may be amended upon approval of a Supermajority Vote of the Executive Board
except that any amendment affecting the following shall require consent of the legislative
authorities of all Principals:
a. Expansion of the scope of services provided by the PORTAL AGENCY beyond
the scope of expansion authorized in Section 5.c.
b. The terms and conditions of membership on the Executive Board.
c. Voting rights of Executive Board Members.
d. Powers of the Executive Board.
e. Principal contribution responsibilities.
f. Hold harmless and indemnification requirements.
g. Provisions regarding duration, termination or withdrawal.
h. The conditions of this Section.
This section shall not be construed to require legislative authority consent for the addition of a
new Principal or agreement to serve an additional Subscriber, or to expand or contract the
services purchased by any Principal or Subscriber or offered by the PORTAL AGENCY.
SECTION 19. TERMINATION OF AGREEMENT; DISSOLUTION OF AGENCY.
a. Generally. This Agreement may be terminated upon the approval of a
Supermajority Vote of the Executive Board. The termination shall be by direction of the
Executive Board to wind up business by a date specified by the Executive Board, which date
shall be at least one (1) year following the date of the vote to terminate. Upon the final
termination date, this Agreement shall be fully terminated.
b. Distribution of Property on Termination of Agreement. Upon termination of this
Agreement, all property acquired during the life of the Agreement remaining in ownership of
PORTAL AGENCY shall be disposed of in the following manner:
i. Real or Personal Property. All real or personal property purchased pursuant
to this Agreement and all unexpended funds or reserve funds, net of all
outstanding PORTAL AGENCY liabilities, shall be distributed to those
Principals still participating in the PORTAL AGENCY on the day prior to
the termination date and shall be apportioned between Principals based on
the ratio that the average of each Principals’ contributions to the operating
budget over the preceding five (5) years bears to the total of all then
remaining Principals’ user fees paid during such five-year period. The
Executive Board shall have the discretion to allocate the real or personal
v. 11.4.13 25
AGENDA ITEM # 8. a)
property and funds as it deems appropriate, and the apportionment,
determined consistent with the preceding sentence, need not be exact.
ii. Intellectual Property Rights. The Vendor will own, or have rights to, all its
intellectual property per the terms of the Portal Services Contract, including
the right to license the Portal operating system exclusively to the PORTAL
AGENCY, its Principals and Subscribers. The Portal license rights, and all
rights granted relating thereto, terminate with the termination of the Portal
Services Contract. Notwithstanding this termination, the Principals and
Subscribers shall retain the right after termination of the Portal license rights
to acquire any and all information and data, including but not limited to
Taxpayer, Licensee and their respective City data, then currently held by the
Vendor or the PORTAL AGENCY. Upon termination of the Portal
Development and Services Contract or the dissolution of the PORTAL
AGENCY, any and all intellectual property owned by the PORTAL
AGENCY (which excludes the Portal and any other intellectual property
owned by the Vendor) will be transferred in its entirety to Principal with the
largest Population. If said Principal does not agree to accept the intellectual
property owned by the PORTAL AGENCY, it shall then be transferred in its
entirety to the Principal with the next largest population, and so on should
that Principal not agree to accept the intellectual property. If no Principal
agrees to accept the intellectual property, then the Executive Board will
attempt to sell the intellectual property at fair market value and distribute the
proceeds in proper proportion to the current Principals in accordance with
Subsection 19.b.i.
iii. Loaned Property. In the event of dissolution or termination of the PORTAL
AGENCY, assigned or loaned assets shall be returned to the lending entity.
iv. Allocation of Liabilities. In the event outstanding liabilities of the PORTAL
AGENCY exceed the value of personal and real property and funds on hand,
all Principals shall contribute to retirement of those liabilities in the same
manner as which they would share in the distribution of properties and
funds.
c. Notwithstanding the foregoing, the Agreement may not be terminated if to do so
would abrogate or otherwise impair any outstanding obligations of the PORTAL AGENCY,
unless provision is made for those obligations.
SECTION 20. DISPUTE RESOLUTION.
a. Whenever any dispute arises between a Principal or the Principals or between the
Principals and the PORTAL AGENCY (referred to collectively in this section as the “parties”)
v. 11.4.13 26
AGENDA ITEM # 8. a)
under this Agreement which is not resolved by routine meetings or communications, the parties
agree to seek resolution of such dispute by the process described in this section, which shall also
be binding on Subscribers.
b. The parties shall seek in good faith to resolve any such dispute or concern by
meeting, as soon as feasible. The meeting shall include the Chair of the Executive Board, the
Manager, and a representative(s) of the Principal(s), if a Principal(s) is involved in the dispute,
and/or a person designated by the Subscriber(s), if a Subscriber(s) is involved in the dispute.
c. If the parties do not come to an agreement on the dispute or concern, any party
may request mediation through a process to be mutually agreed to in good faith between the
parties within 30 days, which may include binding or nonbinding decisions or recommendations
(whichever is mutually agreed to). The mediator(s) shall be mutually agreed upon and shall be
skilled in the legal and business aspects of the subject matter of this Agreement. The parties
shall share equally the costs of mediation and assume their own costs.
SECTION 21. INSURANCE.
The Executive Board, Manager, and Operations Board shall take such steps as are reasonably
practicable to minimize the liability of the Participating Cities, including but not limited to the
utilization of sound business practice. The Executive Board shall determine which, if any,
insurance policies may be reasonably practicably acquired to cover the operations of the Portal
Agency and the activities of the Parties pursuant to this Agreement (which may include Directors
and Officers, Commercial General Liability, Auto, Workers’ Compensation, Stop
Gap/Employer’s Liability, errors and omissions, crime/ fidelity insurance, CyberRisk), and shall
direct the acquisition of same. [
SECTION 22. INDEMNIFICATION AND HOLD HARMLESS.
Each Principal shall indemnify and hold other Principals, their officers, officials, employees,
agents and volunteers harmless from any and all claims, injuries, damages, losses or suits
including attorney fees, arising out of that Principal’s negligent acts or omissions in connection
with the performance of its obligations under this Agreement, except to the extent the injuries or
damages are caused by another Principal.
a. Each Principal shall indemnify and hold the PORTAL AGENCY and its officers,
officials, employees and volunteers harmless from any and all claims, injuries, damages, losses
or suits including attorney fees, arising out of that Principal’s negligent acts or omissions in
connection with the performance of its obligations under this Agreement, except to the extent the
injuries and damages are caused by the PORTAL AGENCY.
v. 11.4.13 27
AGENDA ITEM # 8. a)
b. As provided in its Articles of Incorporation, the PORTAL AGENCY shall
indemnify and hold each Principal its officers, officials, employees and volunteers harmless from
any and all claims, injuries, damages, losses or suits including attorney fees, arising out of the
PORTAL AGENCY’S acts or omissions in connection with the performance of its obligations
under this Agreement, except to the extent the injuries and damages are caused by any Principal.
c. Subscribers shall be required to agree to indemnify and hold harmless each
Principal and the Portal Agency, their officers, officials, employees and volunteers from any and
all claims, injuries, damages, losses or suits including attorney fees, arising out of Subscribers
negligent acts or omissions in connection with its use of the Portal. To such degree as the
Executive Board determines to be reasonable, appropriate, and consistent with applicable law
and to be in the best interests of the Portal Agency, the Portal Agency may also indemnify and
hold harmless Subscribers.
d. Should a court of competent jurisdiction determine that this Agreement is subject
to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to
persons or damages to property caused by or resulting from the concurrent negligence of a party
hereto and the PORTAL AGENCY, its officers, officials, employees, and volunteers, the party’s
liability hereunder shall be only to the extent of the party’s negligence. It is further specifically
and expressly understood that the indemnification provided in this Section constitutes the party’s
waiver of immunity under Industrial Insurance Title 51 RCW, solely for the purpose of this
indemnification. This waiver has been mutually negotiated by the parties. The provisions of this
section shall survive the expiration or termination of this Agreement.
e. Each party shall give the other parties proper notice as provided in Section 24, of
any claim or suit coming within the purview of these indemnities. Termination of this
Agreement, a Principal’s withdrawal from the PORTAL AGENCY, or a Principal’s conversion
to Subscriber status (collectively for purposes of this subparagraph “Termination”), shall not
affect the continuing obligations of each of the parties as indemnitors hereunder with respect to
those indemnities and which shall have occurred prior to such Termination.
SECTION 23. INTERGOVERNMENTAL COOPERATION.
The PORTAL AGENCY shall cooperate with local, state and federal governmental agencies in
order to maximize the utilization of any grant funds for equipment and operations and to enhance
the effectiveness of the PORTAL AGENCY’s operations and minimize costs of service delivery.
v. 11.4.13 28
AGENDA ITEM # 8. a)
SECTION 24. NOTICE.
Notices required to be given to the PORTAL AGENCY under the terms of this Agreement shall
be directed to the following unless all Principals are otherwise notified in writing:
Chair, PORTAL AGENCY Executive Board
c/o his/her Principal agency’s address
Notices to Principals or Subscribers, Board Members or Representatives required hereunder may
be given by mail, overnight delivery, facsimile or email (with confirmation of transmission),
telegram, or personal delivery. Each Principal shall provide the Chair of the PORTAL
AGENCY Executive Board written notice of the address for providing notice to said Principal.
Any Principal wishing to change its mail or email address shall promptly notify the Chair of the
Executive Board. Notice or other written communication shall be deemed to be delivered at the
time when the same is postmarked in the mail or overnight delivery services, sent by facsimile or
email (with confirmation of transmission), sent by telegram, or received by personal delivery.
SECTION 25. VENUE.
The venue for any action related to this Agreement shall be in the Superior Court in and for King
County, Washington at Seattle, or if applicable, in Federal District Court, Western District of
Washington.
SECTION 26. FILING.
As provided by RCW 39.34.040, this Agreement shall be filed prior to its entry in force with the
King County Department of Executive Services Division of Records and Licensing Services, or
its successor, Records and Elections, or, alternatively, listed by subject on a Principal’s web site
or other electronically retrievable public source.
SECTION 27. NO THIRD PARTY BENEFICIARIES.
There are no third-party beneficiaries to this Agreement. No person or entity other than a party
to this Agreement shall have any rights hereunder or any authority to enforce its provisions, and
any such rights or enforcement must be consistent with and subject to the terms of this
Agreement.
v. 11.4.13 29
AGENDA ITEM # 8. a)
SECTION 28. SEVERABILITY.
The invalidity or any clause, sentence, paragraph, subdivision, section or portion of this
agreement shall not affect the validity of the remainder of the Agreement.
SECTION 29. RATIFICATION.
All prior acts taken by the Principals and the PORTAL AGENCY consistent with this
Agreement are hereby ratified and confirmed.
SECTION 30. EXECUTION, COUNTERPARTS AND EFFECTIVE DATE.
This Agreement and any amendments thereto, shall be executed on behalf of each Principal by
its duly authorized representative and pursuant to an appropriate motion, resolution or ordinance.
This Agreement may be executed in any number of counterparts, each of which shall be an
original, but those counterparts will constitute one and the same instrument. This Agreement
shall be deemed adopted and effective as of March 1, 2014, subject to prior approval by the
legislative bodies of all four Original Principals, execution by each Original Principal, and prior
filing of same as required by Section 26.
//
//
(Remainder of page left blank intentionally)
//
//
//
//
v. 11.4.13 30
AGENDA ITEM # 8. a)
IN WITNESS WHEREOF, this Agreement has been executed by each party on the dates
set forth below.
City of Bellevue
________________________________
City Manager
________________________________
Date
Approved as to Form:
________________________________
City Attorney
________________________________
Date
The City of Seattle
________________________________
Mayor
________________________________
Date
Approved as to Form:
________________________________
City Attorney
________________________________
Date
City of Everett
________________________________
Mayor
________________________________
Date
Approved as to Form:
________________________________
City Attorney
________________________________
Date
City of Tacoma
________________________________
City Manager
________________________________
Date
Approved as to Form:
________________________________
City Attorney
________________________________
Date
v. 11.4.13 31
AGENDA ITEM # 8. a)
List of Exhibits
A. Proposed 2014 PORTAL AGENCY BUDGET SUMMARY (including number of
Transactions used for cost allocation as between Original Principals)
B. 2015-2020 Estimated PORTAL AGENCY Operating Budget Summary
C. Capital Cost Recovery Charges
D. Calculation of New Participant Capped Cost Increment and New Participant Labor Cost
Increment
v. 11.4.13 32
AGENDA ITEM # 8. a)
Exhibit A
Proposed 2014 PORTAL AGENCY OPERATING BUDGET SUMMARY
(including number of Transactions used for cost allocation as between Original Principals)
(June to December 2014)
Labor Total 1 152,649
Contracts Total2 27,000
Overhead Total3 12,500
Vendor Costs 4 180,208
Operating Reserves 55,854
Total Budgeted Costs 428,210
Total Budgeted Revenues 428,210
Estimated User fee Revenues5 72,566
Estimated Revenue from City Cost Allocations6 355,644
City of Seattle Cost Allocation 7 245,394
City of Bellevue Cost Allocation 35,654
City of Tacoma Cost Allocation 56,903
City of Everett Cost Allocation 17,782
This budget estimates a six month budget beginning after the Multi-City Business License and
Tax Portal is up and running in mid-2014, the first six months are covered by the Portal
1 This budget includes 2.5 FTE: the Portal Manager, a half-time administrative assistant and a full-time IT Project
Manager/Business Analyst. The personnel for these positions will be provided by the City of Seattle and the costs in
this budget include the fully-funded (salary, benefits, etc.) labor costs for all 2.5 positions. A separate loaned
staffing agreement will be entered into between the Portal Agency and the City of Seattle in 2014 for these staff.
2 Includes contracts for outside services such as Accounting, Insurance, Bank and the State Auditor.
3 Funding for miscellaneous overhead items such as legal fees, office and operating supplies, printing and
licenses/memberships.
4 Includes costs estimated payable to-Gov Systems under the Portal Services Contract in 2014, from and after the
Portal goes “live.” For the first five years of Portal operation,.e-Gov Systems will charge the Portal Agency $1.25
every time a business or taxpayer makes an online Portal filing, whether or not tax is owing.
5 Assumes the Executive Board approves a proposed user fee of $4 per online session per City (the proposed fee
would be payable only when tax is owed; multiple tax and/or license filings on the same session would incur only
one fee). This user fee is based on an estimated Portal use adoption rate by business and taxpayers of 15%. This
adoption rate is expected to grow considerably each year.
6 Cost Allocations are based on the 2012 Transaction count for each Original Principal, shown in the table at the End
of this Exhibit A.
7 Excludes Seattle’s contributions to start-up costs in 2014. Also excludes labor and operating costs for which
Seattle will be reimbursed from the Total Budget shown above, per the loaned staffing agreement.
v. 11.4.13 33
AGENDA ITEM # 8. a)
Implementation Project costs funded by Seattle. This budget estimates also assumes only four
cities participate in 2014.
Transaction Counts Calculations used for Cost Allocation as between Original Principals
Transaction
Counts
Based on 2012 actual business license filings, business and occupations
and gross receipts tax filings for each Original Principal
Seattle Bellevue Tacoma
Everet
t Total
Transactions 212,457 30,927 50,000 14,392 307,776
% Allocation 69% 10% 16% 5% 100%
v. 11.4.13 34
AGENDA ITEM # 8. a)
Exhibit B:
Multi-City Business License and Tax Portal Agency
2015-2020 Estimated Operating Budget Summary
This budget is an estimated six year budget and assumes only four cities participating.
2015 2016 2017 2018 2019 2020
Labor Total 8 314,740 324,182 333,908 343,925 354,243 364,870
Contracts Total 9 55,188 56,402 57,643 58,911 60,207 61,532
Overhead Total10 15,330 15,667 16,012 16,364 16,724 17,092
Vendor Total 11 344,888 383,360 421,832 460,304 479,540 498,776
Operating Reserve - 15% 53,668 7,420 7,467 7,516 4,681 4,733
Total Estimated Budget 783,814 787,031 836,862 887,021 915,396 947,003
Estimated User Fee Revenue 12 193,510 241,888 290,266 338,643 362,832 387,021
Estimated City Cost Allocation
Revenues 13
602,057 555,622 557,306 559,322 563,749 571,414
City of Seattle14 415,419 383,379 384,541 385,932 388,987 394,276
City of Bellevue 60,206 55,562 55,731 55,932 56,375 57,141
City of Tacoma 96,329 88,900 89,169 89,492 90,200 91,426
City of Everett 30,103 27,781 27,865 27,966 28,187 28,571
8 This budget includes 2.5 FTE: the Portal Manager, a half-time administrative assistant and a full-time IT Project Manager/Business Analyst. The personnel for
these positions will be provided by the City of Seattle and the costs in this budget include the fully-funded (salary, benefits, etc.) labor costs for all 2.5 positions.
A separate loaned staffing agreement will be entered into between the Portal Agency and the City of Seattle in 2014 for these staff.
9 Includes contracts for outside services such as Accounting, Insurance, Bank and the State Auditor.
10 Funding for miscellaneous overhead items such as legal fees, office and operating supplies, printing and licenses/memberships.
11 Includes costs estimated payable to-Gov Systems under the Portal Services Contract in 2014, from and after the Portal goes “live.” e-Gov Systems will charge
the Portal Agency $1.25 every time a business or taxpayer makes an online Portal filing, whether or not tax is owing. This per-filing cost is fixed for the first five
years of Portal operation.
12 Assumes the Executive Board approves a proposed user fee of $4 per online session per City (the proposed fee would be payable only when tax is owed;
multiple tax and/or license filings on the same session would incur only one fee). This user fee is based on an estimated Portal use adoption rate by business and
taxpayers of 15%. This adoption rate is expected to grow considerably each year.
13 Cost Allocations are based on the 2012 Transaction count for each Original Principal, shown in Table 2.
14 Excludes Seattle’s contributions to start-up costs in 2014. Also excludes labor and operating costs for which Seattle will be reimbursed from the Total Budget
shown above, per the loaned staffing agreement.
v. 11.4.13 35
AGENDA ITEM # 8. a)
Transaction Counts Calculations used for Cost Allocation as between Original Principals
Transaction
Counts
Based on 2012 actual business license filings, business and occupations
and gross receipts tax filings for each Original Principal
Seattle Bellevue Tacoma
Everet
t Total
Transactions 212,457 30,927 50,000 14,392 307,776
% Allocation 69% 10% 16% 5% 100%
Estimated Adoption Rates
e-Gov Systems
Recommended Adoption
Rate
This is the recommended rate of adoption from e-Gov systems based on previous implementations.
2015 2016 2017 2018 2019 2020
Adoption Rate 40% 50% 60% 70% 75% 80% CPI-U Rates Forecast
2014 2015 2016 2017 2018 2019 2020
CPI-U Forecast
(Bellevue) 2.20% 2.20% 2.20% 2.30% 2.30% 2.30% 2.30%
v. 11.4.13 36 AGENDA ITEM # 8. a)
Exhibit C
Capital Cost Recovery Charges
Beginning in 2015, every Participating City other than the City of Seattle will pay a yearly
Capital Cost Recovery Charge to the Portal Agency which in turn will remit the annual total of
such Charges paid to the City of Seattle. The Charges will remain in place until the total amount
of $1,400,000 has been remitted to Seattle.
The Executive Board shall determine the timing for payment of the Capital Cost Recovery
Charges.
Each Participating City’s Capital Cost Recovery Charge will be determined based on the number
of Transactions allocated to such City in the budget year in which the Charge will be collected,
and in accordance with the following table:
Category: Smallest
City
Smaller
City
Small City Medium City Large City
Transaction Count
allocated to the
City in the budget
year
< 1000 1001 - 4000 4,001 to
14,400
14,401 to
31,000
>31,001
Capital Cost
Recovery Charge
payable annually
$500 $1000 $2000 $4000 $6000
v. 11.4.13 37
AGENDA ITEM # 8. a)
Exhibit D
Calculation of New Participant Capped Cost Increment and
New Participant Labor Cost Increment
New Participant Capped Cost Increment.
The New Participant Capped Cost Increment is an amount calculated in the development of each
budget (or budget amendment) to identify the maximum amount by which Capped Costs may
increase in the budget period without requiring unanimous consent of the Executive Board
Members representing all four Original Principals. The Increment is determined by identifying
the “CPI-U Limit for Capped Costs per Transaction” for the applicable budget period, assuming
the Portal Agency has the same number of Participating Cities as the prior budget period and the
Capped Costs from the previous period are inflated by the CPI-U Limit. The Capped Cost per
Transaction is then multiplied by the number of Transactions attributable to new Participating
Cities joining the Portal Agency in the budget period, and the resulting total is the maximum
amount by which the Capped Costs in the new budget period may be increased over and above
the Status Quo Capped Cost without requiring unanimous consent.
Illustration:
Calculation of New Member Capped Cost Increment for Year X
Assuming: 1 year budget period; addition of 2 member cities proposed in Year X
Part 1: Calculating CPI-U Limit for Capped Costs Per Transaction
CPI-U Limit for Capped Cost for Year X,
• Inflate Capped Costs for the previous year by the CPI-U Limit.
$16,000
Estimated Transaction Count for Year X from currently
Participating Cities
• Includes all Cities participating as Principals or Subscribers in the
previous year.
• Transaction count is that used for purposes of estimating the cost
allocations of these Participating Cities in Year X.
125,000
Capped Cost Per Transaction ($16,000 ÷ 125,000) $0.128
Part 2: Calculating New Member Capped Cost Increment
New Member Transaction Count
• Total Transactions assigned to the 2 new Participating Cities for
purposes of budget allocation in Year X
10,000
New Member Capped Cost Increment for Year X ($0.13 x 10,000)
$1,280
Capped Costs in Year X may be increased by Supermajority Vote to a level of $17,280.
Capped Costs in excess of that amount would require Supermajority Vote and unanimous
approval by Board Members representing the Original Principals.
v. 11.4.13 38
AGENDA ITEM # 8. a)
New Member Participant Labor Cost Increment.
The New Participant Labor Cost Increment is an amount calculated in the development of each
budget (or budget amendment) to identify the maximum amount by which Labor Costs may
increase in the budget period without requiring unanimous consent of the Executive Board
Members representing all four Original Principals. The Increment is determined by identifying
the “Status Quo Labor Cost per Transaction” for the applicable budget period, assuming the
Portal Agency has the same number of Participating Cities and staff as the prior budget period.
The Labor Cost per Transaction is then multiplied by the number of Transactions attributable to
new Participating Cities joining the Portal Agency in the budget period, and the resulting total is
the maximum amount by which the Labor Costs in the new budget period may be increased over
and above the Status Quo Labor Cost without requiring unanimous consent.
Illustration:
Calculation of New Participant Labor Cost Increment for Year X
Assuming: 1 year budget period; addition of 2 member cities proposed in Year X
Part 1: Labor Cost Per Transaction
Status Quo Labor Costs for Year X
• Assuming same number of staff (including employees, if any, and
loaned staff) as were engaged by the Portal Agency in the previous
year, and adding any estimated increases in costs of salary,
benefits, etc. for those same personnel over and above the previous
year’s costs.
$350,000
Estimated Transaction Count for Year X from Currently
Participating Cities
• Includes all Cities participating as Principals or Subscribers in the
previous year.
• Transaction count is that used for purposes of estimating the cost
allocations of these Participating Cities in Year X.
125,000
Labor Cost Per Transaction ($350,000 ÷ 125,000) $2.80
Part 2: New Participant Labor Cost Increment
New Participant Transaction Count
• Total Transactions assigned to the 2 new Participating Cities for
purposes of budget allocation in Year X
10,000
New Participant Labor Cost Increment for Year X ($2.80 x 10,000)
$28,000
Labor Costs in Year X may be increased by Supermajority Vote to a level of $378,000. Labor
Costs in excess of that amount would require Supermajority Vote and unanimous approval by
Board Members representing the Original Principals.
v. 11.4.13 39
AGENDA ITEM # 8. a)
AGENDA ITEM # 8. a)
AGENDA ITEM # 8. a)
AGENDA ITEM # 8. a)
AGENDA ITEM # 8. a)
AGENDA ITEM # 8. a)
SECOND ADDENDUM TO PAGE 31 OF THE WASHINGTON MULTI-CITY BUSINESS
LICENSE AND TAX PORTAL AGENCY INTERLOCAL AGREEMENT
DATED MARCH 1, 2014
Pursuant to FileLocal Resolution _________ and Section 8 of the foregoing, this
Agreement has been executed by the City of Renton to become a Principal city on the date set
forth below:
City of Renton
________________________________
Mayor
________________________________
Date
AGENDA ITEM # 8. a)
Page 1 of 3
AMENDMENT NO. 1 TO THE WASHINGTON MULTI-CITY BUSINESS LICENSE
AND TAX PORTAL AGENCY INTERLOCAL AGREEMENT
BY AND BETWEEN THE CITIES OF
BELLEVUE, EVERETT, SEATTLE, AND TACOMA
This Amendment modifies that certain Washington Multi-City Business License and Tax
Portal Agency Interlocal Agreement, dated March 1, 2014 (“ILA”), entered into by and between
the Cities of Bellevue, Everett, Seattle, and Tacoma (collectively, the “Original Principals”).
WHEREAS, Section 13.g. of the ILA provides a method for allocating Agency costs
among the Original Principals for the years 2014-2018, and another method for the years 2019-
2021; and
WHEREAS, the Original Principals now desire to amend Section 13.g. of the ILA to revise
how Agency costs are allocated among them during the years 2019-2021, so that the allocation
method used in years 2014-2018 may continue to be used through 2021; and
WHEREAS, Section 18 of the ILA allows amendments to the ILA, and specifically allows
amendments affecting the contribution responsibilities of the Principals, so long as such
amendments are approved by the legislative authorities of all Principals;
NOW THEREFORE, the Original Principals hereby agree to amend the ILA as follows:
1. Section 13.g. of the ILA is hereby amended to read as follows:
g. Cost Allocation and Cost Recovery Principles. The PORTAL AGENCY
budget shall be generally allocated between all Participating Cities based on the number
of Transactions processed for each City on the Portal. In years 2014 through 2021, the
number of Transactions for the Original Principals shall be based on 2012 historical
actual pre-Portal use Transaction Counts (as set forth in Exhibit A). In years 2014 through
2018, the City Transaction Count for any other Participating City shall be based on the
most recent historical data for that City prior to it joining the Portal. From and after 2019,
the allocation among other Participating Cities will be determined by considering the
actual number of Transactions (if the City had joined before 2019), historical tax and
license information, and the experience of the Original Principals as to how quickly
businesses have adopted use of the Portal since its launch. The details of the cost allocation
calculation shall be set forth in the Portal Operations Policy. Nothing in this Agreement
shall be construed to prohibit the Executive Board from including factors in addition to the
number of City Transactions in the cost allocation formulas as between Participating
Cities, so long as the primary basis for allocation remains the City Transaction count.
2. All other terms of the ILA remain in full force and effect.
//
//
AGENDA ITEM # 8. a)
Page 2 of 3
AGREED TO BY:
City of Bellevue City of Everett
City Manager Mayor
Date Date
Approved as to Form: Approved as to Form:
City Attorney City Attorney
Date Date
City of Seattle City of Tacoma
Mayor City Manager
Date Date
Approved as to Form: Approved as to Form:
City Attorney City Attorney
Date Date
Finance Director
Date
Attest:
City Clerk
AGENDA ITEM # 8. a)
Page 3 of 3
Date
AGENDA ITEM # 8. a)
1
CITY OF RENTON, WASHINGTON
RESOLUTION NO. _______
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, RATIFYING THE 2017
UPDATE TO THE LAKE WASHINGTON/CEDAR/SAMMAMISH WATERSHED
[WATER RESOURCE INVENTORY AREA (WRIA) 8] CHINOOK SALMON
CONSERVATION PLAN.
WHEREAS, the 2017 update to the WRIA 8 Chinook Salmon Conservation Plan (“WRIA 8
Plan”) is an addendum to the 2005 WRIA 8 Chinook Salmon Conservation Plan, and includes a
scientific framework, Chinook salmon population goals to achieve sustainable and harvestable
populations, habitat restoration goals, recovery strategies, a list of priority projects and
programmatic actions, and a monitoring and adaptive management plan; and
WHEREAS, 28 local governments in WRIA 8 partner through an interlocal agreement to
jointly fund implementation of the WRIA 8 Plan through 2025 to advance their shared interest in
and responsibility for addressing long‐term watershed planning and conservation of aquatic
ecosystems and floodplains for purposes of implementing the WRIA 8 Plan and improving
watershed health; and
WHEREAS, the WRIA 8 partners recognize participating in the ILA and implementing
priorities in the WRIA 8 Plan demonstrates their commitment to proactively working to address
the ESA listing of Chinook salmon; and
WHEREAS, WRIA 8 partners took formal action in 2005 and 2006 to ratify the WRIA 8
Plan; and
WHEREAS, in March 1999, the National Oceanic and Atmospheric Administration (NOAA)
Fisheries listed the Puget Sound Chinook salmon evolutionary significant unit, including the Cedar
AGENDA ITEM # 8. b)
RESOLUTION NO. _______
2
and Sammamish populations in WRIA 8, as a threatened species under the Endangered Species
Act (ESA); and
WHEREAS, an essential ingredient for the development and implementation of an
effective recovery program is coordination and cooperation among federal, state, and local
agencies, tribes, businesses, researchers, non‐governmental organizations, landowners, citizens,
and other stakeholders as required; and
WHEREAS, local jurisdictions have authority over some habitat‐based aspects of Chinook
survival through land use and other policies and programs; and the state and tribes, who are the
legal co‐managers of the fishery resource, are responsible for addressing harvest and hatchery
management in WRIA 8; and
WHEREAS, the City values ecosystem health; water quality improvement; flood hazard
reduction; open space protection; and maintaining a legacy for future generations, including
commercial, tribal, and sport fishing, quality of life, and cultural heritage; and
WHEREAS, the City supports cooperation at the WRIA level to set common priorities for
actions among partners, efficient use of resources and investments, and distribution of
responsibility for actions and expenditures; and
WHEREAS, the WRIA 8 Chinook Salmon Conservation Plan (WRIA 8 Plan) is one of 15
watershed‐based chapters of the Puget Sound Salmon Recovery Plan; and
WHEREAS, the Puget Sound Partnership serves as the Puget Sound regional organization
and lead for planning and implementing the Puget Sound Salmon Recovery Plan, approved by
NOAA Fisheries; and
AGENDA ITEM # 8. b)
RESOLUTION NO. _______
3
WHEREAS, in WRIA 8, habitat protection and restoration actions to significantly increase
Chinook productivity trends are necessary, in conjunction with other recovery efforts, to avoid
extinction in the near term and restore WRIA 8 Chinook to viability in the long term; and
WHEREAS, the WRIA 8 Plan recognizes that salmon recovery is a long‐term effort, and
focuses on a 10‐year implementation time horizon to allow for evaluation of progress and
updating Plan goals and priorities; and
WHEREAS, the City has implemented habitat restoration and protection projects, and
uses the WRIA 8 Plan and salmon habitat recovery strategies and goals as guidance in its land use
and public outreach policies and programs; and
WHEREAS, it is important to provide jurisdictions, the private sector and the public with
certainty and predictability regarding the course of salmon recovery actions that the region will
be taking in WRIA 8, including the Puget Sound nearshore; and
WHEREAS, if insufficient action is taken at the local and regional level, it is unlikely
Chinook salmon populations in WRIA 8 will improve and it is possible the federal government
could list Puget Sound Chinook salmon as an endangered species, thereby decreasing local
flexibility;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO
RESOLVE AS FOLLOWS:
SECTION I. The City Council of the City of Renton, Washington, hereby ratifies the
2017 update to the Lake Washington/Cedar/Sammamish Watershed Chinook Salmon
Conservation Plan, dated September, 2017 (2017 Plan), which shall be kept on file in the City
Clerk’s office. Ratification is intended to convey the City’s approval and support for the following:
AGENDA ITEM # 8. b)
RESOLUTION NO. _______
4
1. Conserving and recovering Chinook salmon and other anadromous fish, focusing
on preserving, protecting and restoring habitat with the intent to recover listed species, including
sustainable, genetically diverse, harvestable populations of naturally spawning Chinook salmon.
2. Providing multiple benefits to people and fish through Plan implementation,
including flood hazard reduction; water quality improvement; open space protection; and
maintaining a legacy for future generations, including commercial, tribal and sport fishing, quality
of life, and cultural heritage.
3. Continuing to work collaboratively with other jurisdictions and stakeholders in
WRIA 8 to implement the WRIA 8 Plan as updated in 2017.
4. Using the habitat goals and associated recovery strategies in the 2017 Plan update
as a basis for local actions recommended in the Plan and as one source of best available science
for future projects, ordinances, programmatic actions, and other appropriate local government
activities.
5. Supporting implementation of the 2017 Plan’s Monitoring and Assessment Plan
on a watershed basis, including an adaptive management approach to implementation and
funding to address uncertainties and ensure cost‐effectiveness by tracking actions, assessing
action effectiveness, learning from results of actions, reviewing assumptions and strategies,
making corrections where needed, and communicating progress.
6. Using the 2017 Plan project list, recommended land use and education and
outreach actions, and other actions consistent with the Plan as the suite of WRIA 8 actions to
guide priorities for implementation and funding, including through grants, local capital
AGENDA ITEM # 8. b)
RESOLUTION NO. _______
5
improvement projects, ordinances, and other activities. Jurisdictions, agencies, and stakeholders
can choose to implement these actions at any time.
7. Using an adaptive approach to funding the Plan through both local sources and by
working together (within WRIA 8 and Puget Sound) to seek federal, state, grant, and other
funding opportunities, and recognizing that funding assumptions, strategies, and options will be
revisited periodically.
PASSED BY THE CITY COUNCIL this ______ day of _______________________, 2018.
______________________________
Jason A. Seth, City Clerk
APPROVED BY THE MAYOR this ______ day of _______________________, 2018.
______________________________
Denis Law, Mayor
Approved as to form:
______________________________
Shane Moloney, City Attorney
RES.1761:3/1/18:scr
AGENDA ITEM # 8. b)