City Council

LAKEWOOD CITY COUNCIL STUDY SESSION AGENDA Monday, February 24, 2020 7:00 P.M. City of Lakewood City Council Chambers 6000 Main Street SW Lakewood, WA 98499 ________________________________________________________________ Page No. CALL TO ORDER ITEMS FOR DISCUSSION: (3) 1. Review of Buildable Lands Report. – (Memorandum) (9) 2. Review of Annual Housing Report. – (Memorandum) (42) 3. Review of SHB 1406 funding for affordable and supportive housing and review of chemical dependency and mental health sales tax. – (Memorandum) ITEMS TENTATIVELY SCHEDULED FOR THE MARCH 2, 2020 REGULAR CITY COUNCIL MEETING: 1. Youth Council Report. 2. Clover Park School District Report. 3. Authorizing the award of a construction contract to Northwest Cascade, Inc., in the amount of $1,148,148, for the construction of the Steilacoom Blvd - 88th Street SW overlay project. – (Motion – Consent Agenda) 4. Authorizing the execution of a collective bargaining agreement with the Lakewood Police Management Guild. – (Motion – Consent Agenda) 5. Relating to local sales or use taxes and authorizing 0.1% sales or use tax for chemical dependency or mental health treatment services or therapeutic courts. – (Ordinance – Regular Agenda) 6. Transportation Capital Improvement Program Update. – (Reports by the City Manager) 7. Parks Capital Improvement Program Update. – (Reports by the City Manager) The Council Chambers is accessible to persons with disabilities. Equipment is available for the hearing impaired. Persons requesting special accommodations or language interpreters should contact the City Clerk, 253-983-7705, as soon as possible in advance of the Council meeting so that an attempt to provide the special accommodations can be made. http://www.cityoflakewood.us Lakewood City Council Agenda -2- February 24, 2020 Page No. 8. Review code updates regarding the Legal Department. – (Reports by the City Manager) REPORTS BY THE CITY MANAGER CITY COUNCIL COMMENTS ADJOURNMENT The Council Chambers is accessible to persons with disabilities. Equipment is available for the hearing impaired. Persons requesting special accommodations or language interpreters should contact the City Clerk, 253-983-7705, as soon as possible in advance of the Council meeting so that an attempt to provide the special accommodations can be made. http://www.cityoflakewood.us  Return to Agenda TO: City Council FROM: Tiffany Speir, Long Range & Strategic Planning Manager Dave Bugher, Assistant City Manager for Development Services THROUGH: John Caulfield, City Manager DATE: February 24, 2020 SUBJECT: Buildable Lands Report Status BACKGROUND Included as a component of the Growth Management Act (GMA) in 1997, the Review and Evaluation Program under RCW 36.70A.215 is often referred to as the “Buildable Lands Program.” It requires that Clark, King, Kitsap, Pierce, Snohomish, Thurston and Whatcom (as of 2017) Counties and the cities within them complete a Buildable Lands Report (BLR) every eight years. The BLRs are a look back at actual development to determine if cities and counties have designated adequate amounts of residential, commercial, and industrial lands to meet the growth needs incorporated in their comprehensive plans. The most recent BLR was issued in 2014; the next is due in 2021. Source: Department of Commerce 2018 Buildable Land Guidelines 1 3  Return to Agenda DISCUSSION 2014 Buildable Lands Report The 2014 BLR concluded that Lakewood had sufficient housing capacity through 2030: The 2014 BLR concluded that Lakewood was 3,845 units short in employment capacity for 2030 (additional employment needs of 12,907 less current employment capacity of 9,062) (see charts below.) In response, Lakewood commissioned Berk & Associates to analyze the assumptions and data used for the 2014 BLR, and published corrected information in its own 2017 report. 2 4  Return to Agenda As shown in Exhibit 6 from the BERK 2017 Memorandum below, Lakewood’s “blended approach” assumes lower employment densities than the Pierce County BLR in most zones, but it anticipates much higher levels of employment in the Transit Oriented Commercial (TOC) and Central Business District (CBD) zones, reflecting the purpose of these zones as regional-serving commercial districts and the intensity of development allowed under current development regulations. The blended approach demonstrates that there is sufficient employment capacity to meet Lakewood’s 2030 and 2035 employment targets – there is a surplus of 2,528 jobs by 2030. The 2018 Downtown Subarea Plan and Planned Action reinforces the City’s intent for higher employment density within the CBD zone, and includes planning for 58-69 activity units per acre and a total of 7,369 jobs within the subarea boundaries. 3 5  Return to Agenda 2021 Buildable Lands Report The next Pierce County BLR is due on June 30, 2021 and its data and conclusions will be incorporated into the GMA-required 2023 periodic updates to local Comprehensive Plans. Source: Department of Commerce 2018 Buildable Land Guidelines 4 6  Return to Agenda Pierce County is the lead agency to draft Buildable Lands Reports (BLRs) for its cities and itself. The County is hiring a consultant to develop the 2021 BLR; the scope of the contract will entail coordination and analysis related to 3 components of the County's Buildable Lands Program: 1) coordinating and providing analytical support in the development of population, housing, and employment targets, 2) completing a consistency analysis for Pierce County and each city and town to determine if the adoption of "reasonable measures" is warranted, and 3) further analyze, with stakeholder input, previously identified public surplus lands for affordable housing opportunities. To date, Lakewood has provided the County with requested housing construction and economic development data, and has staff serving on the Planning & Public Works Department’s BLR task force supporting the project. The BLR consultant is anticipated to be hired and working by April 2020, and the project’s tasks are described below for reference: Tasks Description End Date 20201 Buildable Lands Report Development Task 1 Collect and analyze development data and establish assumptions Task 1.1 Collect and review annual development data for the cities, towns, and 6/30/2020 unincorporated county from January 1, 2013 through December 31, 2019 Task 1.2 Collect pipeline data 6/30/2020 Task 1.3 Collect and review annual development data for the cities, towns, and 6/30/2021 unincorporated county from January 1, 2019 through December 31, 2020 Task 1.4 Calculate and summarize observed development trends 6/30/2020 Task 1.5 Coordinate with cities and towns on development trend analysis and to establish 6/30/2020 assumptions based on trends Task 1.6 Establish unincorporated county assumptions 6/30/2020 Deliverable 1.1 Development data spreadsheets (1/1/13 to 12/31/19) 6/30/2020 Deliverable 1.2 Development data spreadsheets (1/1/19 to 12/31/20) 6/30/2021 Deliverable 1.3 Summary of development trends and assumptions in the Buildable Lands Report 6/30/2021 Task 2 Finalize and adopt updated Countywide Planning Policies and Buildable Lands Procedures Task 2.1 Develop final draft of updated Countywide Planning Policies and Buildable Lands 6/30/2020 Procedures documents Task 2.2 Legislative process to adopt CPPs 6/30/2021 Deliverable 2.1 Updated CPPs and Procedures document 6/30/2021 Task 3 Develop inventory and calculate capacity Task 3.1 Produce GIS housing inventory 6/30/2020 Task 3.2 Update/run GIS model for Buildable Lands inventory 6/30/2020 Task 3.3 Review/QC inventory results 6/30/2020 Task 3.4 Coordinate with cities and towns on inventory 6/30/2021 Task 3.5 Calculate capacity 6/30/2021 Task 3.6 Coordinate with cities and towns on results 6/30/2021 Deliverable 3.1 GIS shapefile with inventory 6/30/2021 Deliverable 3.2 Capacity calculation spreadsheets 6/30/2021 Deliverable 3.3 Capacity calculation tables and summaries in the Buildable Lands Report 6/30/2021 5 7  Return to Agenda Tasks Description End Date 20201 Buildable Lands Report Development Task 4 Establish and adopt population, housing, and employment targets Task 4.1 Further analyze results/trends from non-policy-adjusted growth forecast/projections 6/30/2020 Task 4.2 Participate in Vision 2050 update review 6/30/2020 Task 4.3 Establish the countywide and unincorporated county targets 6/30/2021 Task 4.4 Coordinate with cities and towns to establish their respective jurisdiction’s targets 6/30/2021 Task 4.5 Legislative process to adopt targets 6/30/2021 Deliverable 4.1 Final report on non-policy adjusted growth forecast/projections 6/30/2020 Deliverable 4.2 Ordinance for Pierce County targets (appendix to CPPs) 6/30/2021 Task 5 Consistency analysis Task 5.1 Compare assumed capacity and targets and analyze/summarize potential need for 6/30/2021 reasonable measures Task 5.2 Compare observed trends with planned densities and analyze/summarize potential 6/30/2021 need for reasonable measures Task 5.3 Coordinate with cities and towns on results of consistency analysis and potential 6/30/2021 need for reasonable measures Deliverable 5.1 Consistency analysis summary in the Buildable Lands Report 6/30/2021 Task 6 Develop report Task 6.1 Compile information into the Buildable Lands Report and summarize results by 6/30/2021 jurisdiction Deliverable 6.1 Buildable Lands Report 6/30/2021 Task 7 Coordination with Growth Management Coordinating Committee and Buildable Lands Ad-Hoc Subcommittee Task 7.1 Meet with GMCC 6/30/2021 Task 7.2 Meet with GMCC Buildable Lands Ad-Hoc Subcommittee 6/30/2021 Deliverable 7.1 Meeting materials and presentations 6/30/2021 Task 8 Affordable housing Task 8.1 Identify strategies to reduce infrastructure cost for new housing 6/30/2020 Task 8.2 Develop model codes for cluster cottage housing and accessory dwelling units 6/30/2021 Task 8.3 Conduct site feasibility of targeted surplus public lands to determine affordable 6/30/2020 housing development potential Deliverable 8.1 Report on strategies to reduce infrastructure cost for new housing 6/30/2020 Deliverable 8.2 Draft model codes for cluster cottage housing and accessory dwelling units 6/30/2021 Deliverable 8.3 Report on site feasibility of targeted surplus public lands to determine affordable 6/30/2020 housing development potential Task 9 Project management Task 9.1 Administer and provide reports as necessary 6/30/2021 Task 9.2 Monitor fiscal status of grant and expenditures 6/30/2021 Task 9.3 Prepare consultant scope of work and administer contract with consultant 6/30/2020 Task 9.4 Regular check-ins with consultant 6/30/2021 Task 9.5 Monitor and update schedule 6/30/2021 Deliverable 9.1 Progress reports to Commerce 6/30/2021 Task 10 General Buildable Lands Tasks Task 10.1 Conduct work as needed to further the 2021 Buildable Lands Report, which may 6/30/2021 include Reasonable Measures monitoring, general stakeholder outreach, and mapping assistance. 6 8  Return to Agenda TO: Mayor and City Councilmembers FROM: David Bugher, Assistant City Manager for Development Services THROUGH: John J. Caulfield, City Manager DATE: February 24, 2020 (Council Study Session) SUBJECT: Annual Housing Report Each year, the Planning Commission and City Council receive a report on housing activity from the previous year. The report reviews the amount of housing construction and the level of platting activity. This year the report has been expanded to include other information: 1) a discussion on population and housing projections; 2) the cost of housing; 3) a brief review of incentives; and 4) what to expect in the coming years. The report has been prepared in a PowerPoint format. 9  Return to Agenda City of Lakewood Annual Housing Report – 2019 February 24, 2020 10  Return to Agenda What is this?  Each year, the community and economic development department publishes a report on housing development.  The 2019 Lakewood Annual Housing Report is a snapshot of recent housing activities.  This report discusses projected growth and future housing trends, and the affordability of renting or owning a home. 11  Return to Agenda Why is this important? • Assists the City Council, advisory boards, and community members to understand the dynamics of local housing market, track production and diversity of housing, and assess the affordability of housing. • Important for implementing policies and programs aimed to meet local housing needs, maintain affordability as much as possible, and encouraging housing diversity and community inclusion. 12  Return to Agenda Contents  Review of population & housing growth targets.  Actual population & housing inventory in Lakewood.  Housing – permitted construction, 2019.  New residential single family lots, 2019.  Cost of renting and/or owning a home in Lakewood, 2019.  What to expect in 2020 & in future years. 13  Return to Agenda Where’s the starting point? 14 Pierce County Ordinance (2017-24s) Return to Agenda July 10, 2017 County Ordinance modified the Adopted Growth Management Act population, housing unit, and employment targets for Select Cities and Towns for the Year 2030 LAKEWOOD ’08 Estimates ‘08 – ’30 Growth ‘30 Allocation Population 58,780 13,220 72,000 Housing 25,904 8,380 34,284 LAKEWOOD ‘08 Total ‘30 Total Total Employment Employment Employment Growth Estimate Target Employment 29,051 38,336 9,285 15  Return to Agenda How Ord. 2017-24s translates into Lakewood’s projected growth targets 16  Actual population 2010 through 2019 Return to Agenda City Censu Est. Est. Est. Est. Est. Est. Est. Est. Est. s 2010 2011 2012 2013 2014 2015 2016 2017 20181 2019 Lakewood 58,163 58,190 58,260 58,310 58,360 58,400 58,800 59,280 59,350 59,670 State of Washington Population Trends Forecasting & Research Division Office of Financial Management August 2019 17  Housing – 2016 to 2019 Return to Agenda 2015 Est. 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 Total Est. 1-Unit Est. 2+ Est. Mobile Est. Total Est. 1-Unit Est. 2+ Est. Mobile Total Est. 1-Unit Est. 2+ Est. Mobile Housing Housing Housing Home & Housing Housing Housing Home & Housing Housing Housing Home & Units Units Units Special Units Units Units Special Units Units Units Special Housing Housing Housing Units Units Units 26,676 13,530 11,696 1,450 26,757 13,549 11,760 1,448 26,784 13,560 11,774 1,450 2018 Total 2018 2018 2018 2019 2019 2019 2019 Housing Est. 1-Unit Est. 2+ Est. Mobile Total Est. 1-Unit Est. 2+ Est. Mobile Units Housing Housing Home & Housing Housing Housing Home & Units Units Special Units Units Units Special Housing Housing Units Units 26,776 13,562 11,764 1,450 26,835 13,613 11,772 1,450 OFM Data File 18  Return to Agenda 2019 new housing construction Type No. of building permits No. of residential units issued SFR’s 25 25 Duplexes 0 0 Triplexes 0 0 Mf 1 10 Totals 26 35 19 Why has Lakewood not met its growth Return to Agenda targets? • Historically, the adopted targets have • Infill economics are challenging. Projects been unrealistic. must be more profitable (either through lower costs or higher returns) to make • Residential development is restricted to them competitive with the ‘greenfield’ infill lots. proposals. • There are no ‘greenfields’ in Lakewood. • Infill lots have underlying problems with The last ‘greenfields’ were developed in infrastructure &/or environmental issues. the early and mid-90s (prior to incorporation) with large apartment • SF homeowners are overwhelmingly complexes. opposed to new residential subdivisions & higher densities. • Land assembly frictions (holdouts & • McChord Field Air Installation often parcels are at different stages in Compatible Use Zone (AICUZ) their life cycle which results in higher restrictions (northeast Lakewood). prices). 20 Quick review of the City’s MFTE Return to Agenda program Purpose under state law - • Encourage increased residential opportunities in cities planning under GMA where there is insufficient housing opportunities, including affordable housing. • Stimulate the construction of new multifamily housing and the rehabilitation of existing vacant and underutilized buildings for multifamily housing in urban centers having insufficient housing. (RCW 84.14.007) 21  2019/20 MFTE update Return to Agenda final certificates issued & pending MFTE’s projects Name Location Final Pending No. of Market Afford. Certificate units Rate Units Issued Rainier Terrace 4110 108th St Y N/A 11 11 0 SW Springbrook 12535 SPE, LLC Bridgeport Y N/A 208 208 0 Way Two Ironmen, 5903 Lake N Y 30 24 6 LLC Grove St SW Totals 249 243 6 22 Overall MFTE program findings Return to Agenda • Program has been in place since 2006. • A total 5 projects & 482 units have been approved. • All 5 projects possessed difficult site constraints. • 1 project was a greenfield, the remaining 4 projects were infill. • Units are almost entirely market-rate. 23  2019 platting activity Return to Agenda Type No. No. of lots Short plats, applications 6 18 pending Short plats approved, but 21 67 not finaled Short plats finaled 13 47 Short plats denied 0 0 Preliminary plats, 0 0 applications pending Preliminary plats approved, but not finaled 1 16 Preliminary plats finaled 1 15 Preliminary plats denied 1 -21 Totals 43 142 24 Changing subjects – housing Return to Agenda affordability (Out-of-date) Owner-occupied housing unit rate, 2014-2018 44.4% Median value of owner-occupied housing units, $248,200 2014-2018 Median selected monthly owner costs – with a $1,735 mortgage, 2014-2018 Median gross rent, 2014-2018 $971 City of Lakewood, United States Census Bureau 25 Housing is a national problem Return to Agenda  The 5.9 million single family homes built between 2012 and 2019 do not offset the 9.8 million new households formed during that time, according to an analysis by realtor.com  Even with an above average pace of construction, it would take builders between four and five years to get back to a balanced market. HOWEVER,  Construction costs are rising.  Labor pool has not recovered from the Great Recession. 26  Return to Agenda In Washington State, it looks like this… National Low Income Housing Coalition based on 2017 ACS PUMS 27 Lakewood household income (ACS 2018 Return to Agenda 5-year) Median household income Household Income $50,175 Less than $10,000 1,889 $10,000 to $14,999 1,083 Per capita income $28,115 $15,000 to $19,999 1,176 $20,000 to $24,999 1,500 $25,000 50 $29,999 1,430 $30,000 to $34,999 1,559 $35,000 to $39,999 1,233 $40,000 to $44,999 1,274 $45,000 to $49,999 1,058 $50,000 to $59,999 2,320 $60,000 to $74,999 2,611 $75,000 to $99,999 2,893 $100,000 to $124,999 1,681 $125,000 to $149,999 1,250 $150,000 to $199,999 917 $200,000 or more 646 28  Return to Agenda Lakewood poverty levels • 17.4% of Lakewood’s population lives below the poverty line (10,383). • 27.6% of children living in poverty. • 7.3% of seniors living in poverty. • Lakewood’s poverty level is double the rate in the Seattle-Tacoma- Bellevue, WA Area (9.6%). • About 1.5 times the rate in Washington State (11.5%). 29 The current cost of renting, Return to Agenda Wellstone Apartments (Springbrook Neighborhood) Unit Type Area Per (SF) Unit/Month And don’t forget the Studio 600 $1,430 additional monthly fees! Open 1 bedroom 600 $1,550 Carport, $55 1 bedroom/1 bath 775 $1,775 Garage, $250 1 bedroom/1bath/1 800 $1,735 Pet rent, $45 den Top floor premium, $25 2 bedroom/2 bath 1,100 $1,955 30  Return to Agenda Zillow Lakewood market overview home value index The median home value in Lakewood is $344,970. Lakewood home values have gone up 7.4% over the past year and Zillow predicts they will rise 5.2% within the next year. 31  Return to Agenda Home values nearby cities/ communities Name Median Name Median Name Median Zillow Zillow Zillow Home Value Home Value Home Value Fox Island $598,800 Fircrest $340,700 Tacoma $251,000 Ruston $376,100 Steilacoom $330,600 Midland $242,200 University $362,600 Spanaway $257,300 Parkland $238,100 Place Puyallup $388,600 Sumner $311,000 DuPont $374,095 32 Lakewood apartment rent ranges Return to Agenda Average monthly apartment rent: $1,207 Year-to-year change: 6% Average apartment size: 801 sq. ft. Data provided by Rent Cafe 33  Return to Agenda City Average Year-to-year Rent change Lakewood $1,207 6% How Lakewood Puyallup $1,530 7% compares to Tacoma $1,345 6% other Spanaway $1,080 -5% communities University Place $1,231 6% Gig Harbor $1,551 4% Lacey $1,258 3% Olympia $1,250 4% Data provided by Rent Cafe 34  Return to Agenda Rent Affordability Calculator Monthly gross Monthly debts Monthly Utilities Rent you can afford Number income (credit card savings (30% of gross Lakewood rentals debt, loans, income ) available within etc.) this budget (Feb 6, 2020 $2,436 $100 $100 $180 $730 0 ($29,232) $3,750 $100 $100 $180 $1,125 13 ($45,000) $4,181 $100 $100 $180 $1,254 19 ($50,172) $4,976 $100 $100 $180 $1,492 27 ($59,711) $5,834 $100 $100 $180 $1,750 99 ($70,000) Data provided by Rent Cafe 35 PSRC survey top housing incentives Return to Agenda (69 cities, 4 counties) Ranking Incentives 30 Density Bonus () 29 Parking Requirement Reduction () 26 Multifamily Tax Exemption (MFTE) () 20 Planned Action EIS () 17 Incentive Zoning (- Downtown Plan) 15 Use of Public Lands for Affordable Housing 15 Transfer of Development Rights (TDRs) 14 Inclusionary Zoning 13 Permitting Priority 36  Return to Agenda PSRC - MFTE accounts for more units than all other incentives combined 37 What to expect in 2020… Return to Agenda  Lakewood home prices will continue to rise.  Lakewood apartment vacancy rates will remain at or below 3 percent.  Apartment rents will increase throughout Pierce County.  Rents are relatively high throughout Pierce County, but significantly less expensive than King County. The least expensive community in Pierce County is Spanaway.  New single family housing construction will remain limited given the community’s built-out nature.  The Downtown Subarea Plan provides an efficient means to increase housing supply through densification and economies of scale.  The housing cost burden is rising.  Nationally and regionally, the cost of housing may push some families to relocate, or place them into poverty and potentially homelessness. 38 What to expect in 2020… Return to Agenda  Possible state legislative changes to residential zoning requirements.  Expect roommate arrangements in apartment complexes.  Some level of overcrowding may be occurring.  Multi generational housing is going to become the new norm.  The State’s new energy conservation codes will increase housing costs.  CEDD is experiencing an increase in the illegal conversion of single family residences into multifamily housing.  Lakewood may see micro-unit projects; these are allowed under current code regulations.  Mobile home park housing remains a challenging subject, although with proactive measures initiated through CSRT, there has been some improvement in living conditions. 39 What to expect in 2020… Return to Agenda • As part of the 18A Update that occurred in 2019, some technical changes have been proposed to the Accessory Dwelling Unit (ADU) requirements. • PDD code changes pursuant to the Council’s 2020 CPA Docket. • CEDD will be requesting some changes to the MFTE program. • Perhaps one senior housing project (140-units). And in 2021? • If the State adopts local affordable housing set-aside mandates, &/or requires climate mitigation through SEPA, it could impact housing supply. • Lakewood Station District Subarea Plan. • Codification of changes in residential zoning standards pursuant to action of Washington state in 2020. (?) • Development of regional housing policies & objectives pursuant to PSRC requirements. 40 Return to Agenda 41  Return to Agenda TO: City Council FROM: Tiffany Speir, Long Range & Strategic Planning Manager David Bugher, Assistant City Manager for Development Services THROUGH: John Caulfield, City Manager DATE: February 24, 2020 SUBJECT: SHB 1406 Funding in Lakewood ATTACHMENTS: Examples of other Jurisdictions’ Use of 0.1% Mental Health Tax Funds (Attachment A); draft Ordinance enabling collection of SHB 1406 funds by Lakewood (Attachment B); draft Ordinance for 0.1% mental health and chemical dependency sales tax (Attachment C) BACKGROUND In the 2019 legislative session, Washington adopted SHB 1406 that approved a local sales tax revenue sharing program for cities that can be used for: acquiring, rehabilitating, or constructing affordable housing; operations and maintenance of new affordable or supportive housing facilities; and, for smaller jurisdictions, rental assistance. An SHB 1406 authorizing ordinance must be adopted by Lakewood no later than July 27, 2020 to qualify for the credit. To maximize the available SHB 1406 funding for Lakewood (i.e., increasing the city’s share from 0.0073% to 0.0146%), the City Council needs to adopt a “qualifying local tax” prior to adopting its 1406 ordinance. On January 13, the City Council directed that the following be prepared: • Additional information regarding City Council-manic adoption of a 0.1% tax for mental health and therapeutic court services (MHCD tax) as an SHB 1406 qualifying local tax; • Information about how other jurisdictions have used their respective MHCD taxes (included in Attachment A); and • An SHB 1406 enabling ordinance for review and action (included in Attachment B.) Also included in Attachment C is a draft ordinance to adopt the MHCD tax. This tax is authorized for counties only, except for Pierce County cities with a population over 30,000 (Lakewood, Puyallup, Tacoma and University Place) if Pierce County has not adopted it. 1 42  Return to Agenda DISCUSSION SHB 1406 Process and Timing Because Pierce County has taken advantage of SHB 1406 funds via Resolution No. R2019- 103 and Ordinance 2019-57s, Lakewood could qualify for up to 0.0146% if it also adopts one of four possible “qualifying local taxes” prior to adopting its SHB 1406 Ordinance. Included below are MRSC estimates of the potential SHB 1406 revenue for Lakewood and Pierce County at the 0.0073% and 0.0146% levels. The lower table includes the City’s internal revenue estimates for each of the possible qualifying local taxes. 0.0073% 0.0146% CITY or 2019 Sum Of 0.0073% over 20 0.0146% annual cap w over 20 COUNTY Taxable Funds annual cap years qualifying local tax in place years Lakewood $1,195,429,873 $97,571 $1,951,417 $195,142 $3,902,834 Pierce County $3,733,777,060 N/A N/A $545,131 $10,902,629 Source: MRSC (per Dept. of Revenue data re taxable local retail sales for state fiscal year 2019 (7/1/18 to 6/30/19).) Estimates for the RCW 82.14.530 and RCW 82.14.460 funds are based upon MRSC’s estimated 1406 revenue for Lakewood. 2 43  Return to Agenda The 0.1% MHCD sales tax may be imposed council-manically and does not require voter approval. If the City Council wishes to use the MHCD as the qualifying local tax to maximize Lakewood’s SHB 1406 funds, the City Council would need to adopt the City’s MHCD tax ordinance prior to the Pierce County Council adopting a County MHCD tax ordinance. The County Council has scheduled action on its MHCD tax ordinance for March 10, 2020. (More information about the County’s MHCD tax is included below.) Included here is a summary graphic explanation of next steps for the City Council: No - Take no action on 1406 Ordinance No - Take no action on 0.1% mental health tax Adopt SHB 1406 Enabling Adopt 0.1% mental Ordinance? Yes - Adopt 1406 health tax as Ordinance by Qualifying Local Tax 7/27/2020 to double 1406 Funds to Lakewood? Yes - Adopt 0.1% mental health tax before County adopts 0.1% mental health tax (BEFORE 3/10/2020) Other Jurisdictions’ Use of MHCD 23 counties and the City of Tacoma have authorized the 0.1% mental health and chemical dependency (MHCD) sales tax. Details about several of the programs are included in Attachment A. Generally speaking, MIDD programs’ complexity and scope depend on revenues available: • King County = $67 million annually • Snohomish County = $15 million annually • Kitsap County = $6.64 million annually • Pacific County = $208,411 collected in 2017 with an additional $595,000 in in- kind/match funds secured • City of Tacoma = $6.29 million in 2020. Pierce County Consideration of 0.1% Tax for Behavioral Health and Therapeutic Courts On February 18, the Pierce County Council’s Human Services Committee held a public hearing on Proposal 2020-24 that would adopt a county level 0.1% sales tax for behavioral health services and therapeutic courts and creating a Behavioral Health Coordinating Commission (BHCC.) After the committee took a unanimous vote to forward Proposal 2020-24 without a recommendation, the proposal is scheduled for action by the full Pierce County Council on March 10, 2020. More details on Pierce County Proposal 2020-24 are included in Attachment A. 3 44  Return to Agenda OUTCOME OF ADOPTING SHB 1406 ORDINANCE AND MHCD TAX ORDINANCE SHB 1406 The City Council has discussed dedicating SHB 1406 funds toward several areas, including use in conjunction with Lakewood’s CDBG Major Home Repair Program, CDBG Major Home Repair and Sewer Loan Program, and HOME Housing Rehabilitation Loan Program. There is a high demand for home repair and rehabilitation loans in the City; Lakewood would need to track and administer SHB 1406 funds separately from CDBG and HOME funds, but the funds could be used in conjunction with each other to increase the amount available to low income residents to maintain their homes. In addition, the City Council allocates CDBG and HOME funds among various City programs, and has the authority, if it desired to do so, to allocate up to 100% of those funds (aside from administrative costs and the dollars dedicated to loan repayment) to home repairs and rehabilitation efforts. 0.1% MHCD Tax If Lakewood were to enact a 0.1% MHCD tax per RCW 82.14.460 as the qualifying local tax for SHC 1406 funds (talking action prior to Pierce County adopting a 0.1% MCHD tax), it could not only maximize SHB 1406 funds, but also generate an estimated $1.123 million annually for providing for the operation or delivery of “chemical dependency or mental health treatment programs and services” (treatment services, case management, transportation, and housing that are a component of a coordinated chemical dependency or mental health treatment program or service) and for the operation or delivery of therapeutic court programs and services. Many jurisdictions that have adopted a MHCD tax have identified an existing or newly established committee or board that provides recommendations to their Council on how to spend the funds. Supplanting Per RCW 86.14.460 (4), all moneys collected under this section must be used solely for the purpose of providing new or expanded programs and services, except as follows: (b) For . . . a city with a population over thirty thousand, which initially imposes the tax authorized under this section after December 31, 2011, a portion of moneys collected under this section may be used to supplant existing funding for these purposes as follows: Up to fifty percent may be used to supplant existing funding for up to the first three calendar years following adoption; and up to twenty-five percent may be used to supplant existing funding for the fourth and fifth years after adoption. For instance, Lakewood could supplant some portion of the funding for its Behavioral Health Contact Team for a period of up to 5 years. 4 45  Return to Agenda ATTACHMENT A Other Jurisdictions’ Use of 0.1% Mental Health and Chemical Dependency Sales Tax (MHCD) • King County's tax (termed “MIDD”) was adopted in 2008 (Ordinances 18406 and 18407) and has been extended to 2025; it collects an average of $134 million every two years. The MIDD Advisory Committee (authorized by Ordinance 18452) advises the County Executive and Council on matters related to the MIDD. The Committee is a partnership of representatives from the health and human services and criminal justice communities, including providers and other stakeholders. King County MIDD’s range of initiatives are designed to advance five overarching goals: o Divert individuals with behavioral health needs from costly interventions, such as jail, emergency rooms, and hospitals; o Reduce the number, length, and frequency of behavioral health crisis events; o Increase culturally appropriate, trauma-informed behavioral health services; o Improve health and wellness of individuals living with behavioral health conditions; and o Explicit linkages with and further the work of King County and community initiatives. 5 46 Return to Agenda 6 47  Return to Agenda • Snohomish County adopted Ordinance 08-154 on December 3, 2008. The Council provided explicit policy goals to be achieved using the funds generated: o Reduce the incidence and severity of chemical dependency and/or mental health disorders in adults and youth; o Reduce the number of individuals with chemical dependency and/or mental health disorders using costly interventions such as hospitals, emergency rooms, or jails; o Diverge adults and youth with chemical dependency and/or mental health disorders from initial or further involvement with the criminal justice system; o Support linkages with other county efforts; o Provide outreach to underserved populations; and o Provide culturally appropriate service delivery. Priority populations established in the 2010 Sales Tax Expenditure Plan are understood to be of equal priority and include: aging population, families with children, most costly (high utilizers), the most vulnerable, veterans and their families, and youth. Priority Programs include: o Therapeutic Courts, Triage Facility, and Related Services:  Family Dependency Drug Court and Other Therapeutic Courts;  Snohomish County Triage Facility;  Involuntary Treatment Program, Therapeutic Alternatives, and  DOSA o Housing:  Housing for Veterans;  Housing for Other Sales Tax Priority Populations o Chemical Dependency and Mental Health Treatment:  Chemical Dependency and Mental Health Treatment for Youth;  Chemical Dependency and Mental Health Treatment for Other Priority Populations o Training o Prevention and Specialist Services 7 48  Return to Agenda Snohomish County created a chemical dependency/mental health program advisory board regarding implementation and use of the tax. The board has no more than 13 appointed members including: o at least two members of the community mental health program advisory board, o two members of the alcohol and drug abuse advisory board, o one member of the council on aging, o one member of the children’s commission, o one member of the veterans’ assistance fund executive board, o one member to represent the county jail, o one member to represent the superior court, o one member who personally provides chemical or drug dependency or mental health services to individual clients, and o one member to represent law enforcement. The advisory board has the following powers and duties: o Meet at least annually to provide oversight and review of county actions relating to implementation and use of the tax imposed by this chapter; o Make recommendations to the executive, legislative, and judicial branches of county government to promote efficient and cost-effective implementation and use of the tax imposed by this chapter; o When requested by the director of the department of human services or superior court administrator, provide input or other assistance in the preparation of reports required by SCC 4.25.120; and o Such other duties as the council may assign. 8 49  Return to Agenda • Kitsap County Ordinance 507-2013 authorized a sales and use tax to provide for delivery of Mental Health, Chemical Dependency and/or Therapeutic Court programs and services. Identified strategic policy goals guided by a Behavioral Health Needs Analysis or similar plan(s) included: o Improve the health status and well-being of Kitsap County residents; o Reduce the incidence and severity of chemical dependency and/or mental health disorders in adults and youth; o Divert chemically dependent and mentally ill youth and adults from initial or further criminal justice system involvement; o Reduce the number of people in Kitsap County who cycle through the criminal justice systems, including jails and prisons; o Reduce the number of people in Kitsap County who use costly interventions including hospitals, emergency rooms, and crisis services; and o Increase the number of stable housing options for chemically dependent and mentally ill residents of Kitsap County. Kitsap County Resolution 103-2013 established an eleven-member Mental Health, Chemical Dependency and Therapeutic Court Citizens Advisory Committee to be appointed by the Kitsap County Board of Commissioners. The citizen advisory committee membership includes: A. One (1) member from the Peninsula Regional Support Network Advisory Board B. One (1) member from the Kitsap County Substance Abuse Advisory Board C. One (1) member from the Commission on Children and Youth D. One (1) member from the Area Agency on Aging E. One (1) member from Law and Justice programs F. One (1) member from Education G. Five(5) At-Large members representing a broad spectrum of community members whose background and expertise will enhance the function and effectiveness of the Advisory Committee in fulfilling their responsibilities. The duties of the Citizens Advisory Committee include, but are not limited to: o Review the behavioral health strategic planning team's needs assessment, goals, objectives and strategies aimed to meet the behavioral health needs of the community; o Review applications for the use of funding provided pursuant to KCC 4.33.010 every three years, at minimum, based on the board of commissioners' strategic direction, priorities and criteria for distribution; Upon assessment of the applications, the committee will recommend to the board of commissioners the proposals and funding levels to meet the County's behavioral health service needs; o Annually review performance measures to determine the success of funded proposals and achievement of county behavioral health goals; 9 50  Return to Agenda o Submit an annual report to the board of commissioners that lists programs funded, amounts allocated and expended, number of individuals served and performance measures along with recommended program and/or process changes based on the measurement and evaluation data; o Review the Behavioral Health Strategic Plan every three years, in coordination with the request for proposal process, to assess the overall progress towards achieving Kitsap County's behavioral health goals; o Reconvene the behavioral health strategic planning team every six years to update the Behavioral Health Strategic Plan; and o Ensure that the implementation and evaluation of the strategies and programs funded by the Treatment Sales Tax are transparent, accountable and collaborative. 10 51  Return to Agenda • Pacific County Ordinance No. 175 (2015) – Imposing 0.1% mental health and chemical dependency sales tax. 11 52 Return to Agenda 12 53  Return to Agenda • City of Tacoma’s Ordinance No. 28057 imposed a 0.1% sales tax in 2012 dedicated to mental health and chemical dependency (MHCD) services to: o address unmet community needs and fund programs and services in the City related to mental health, chemical dependency, and therapeutic courts; o establish 1.5 full-time equivalent special project positions to administer the programs related to mental health, chemical dependency, and therapeutic courts; and o fund said positions with revenue received through the proposed tax. The Tacoma City Council’s policy goals included: 1. A reduction in the number of mentally ill and chemically dependent youths and adults using costly interventions, such as jail, emergency rooms and hospitals; 2. A reduction of the incidence and severity of chemical dependency and mental and emotional disorders in youths and adults; 3. Linkage with other Council and Department-directed efforts including, the Gang Project, the Plan to End Family Homelessness, and the Youth and Young Adult Continuum Project; 4. A reduction in youths and adults experiencing homelessness in Tacoma; and 5. A strong emphasis on having performance measures and achieving outcomes that encourage service integration (breaking down silos). Tacoma’s MCHD tax has a 2020 projected revenue of $6.29 million. Per the Tacoma website: 2019-2020 Budget: Sales taxes represent $117 million or 23% of General Fund Revenues. Tacoma consumers pay a sales tax rate of 10.1%, of which 0.1% is for the MHCD Services. These revenues are highly variable depending on economic conditions. The City Council’s Community Vitality and Safety Committee provides recommendations to the full council regarding implementation of the MCHD tax- funded activities. Excerpts from the 2012 Implementation Plan are included below. 13 54  Return to Agenda In 2019 and 2020, the following programs were funded by the MHCD tax: 14 55  Return to Agenda • Pierce County Consideration of 0.1% MCHD Tax On February 18, 2020 the Pierce County Council’s Human Services Committee held a public hearing on Proposal 2020-24 that would adopt a county level 0.1% MCHD sales tax and creating a Behavioral Health Coordinating Commission (BHCC.) After the committee took a unanimous vote to forward Proposal 2020-24 without a recommendation, the proposal is scheduled for action by the full Pierce County Council on March 10, 2020. The Behavioral Health Coordinating Commission would: • recommend expenditures from the Behavioral Health and Therapeutic Courts Tax Fund and to help coordinate delivery of behavioral health services throughout Pierce County by: A. Creating a strategic plan for system improvements with clearly articulated goals, objectives, outcomes and action steps prioritizing areas for short-, medium-, and long term change including, but not limited to, a focus on community education, prevention and early intervention, community-based services, crisis and inpatient services, outpatient treatment and services for the justice involved; B. Creating or identifying performance and outcome measures to incentivize and assess change with emphasis on accountability and key milestones; C. Engaging community stakeholders in an ongoing, inclusive way to promote a shared vision for a healthy and coordinated system; D. Operating in concert with existing behavioral health initiatives and regional workgroups; E. Working with Washington State to ensure alignment with relevant state initiatives and facilitate implementation of the strategic plan; F. Identifying and pursuing sustainable funding sources to enhance Pierce County's limited prevention, early intervention and treatment system resources; G. Identifying and addressing potential concerns as they emerge to ensure smooth transitions and to prevent disruption in progress; and H. Developing strategies to ensure that system principles are included and that data elements required for system accountability are adopted. The Behavioral Health Coordinating Commission would be comprised of the following members: 15 56  Return to Agenda • A staff designee from each of the following departments: A. Sheriff, Superior Court, District Court, and the Tacoma-Pierce County Health Department. B. One staff designee each from the cities of Lakewood, Puyallup and an additional city or town selected by the Pierce County Regional Council. C. One representative each from the following service providers operating in Pierce County:  1. emergency medical service providers;  2. providers of both mental health and chemical dependency services;  3. large hospitals;  4. operators of detox and or evaluation and treatment centers;  5. behavioral health navigator or peer advocates who have been through a Pierce County peer bridger program;  6. providers of homeless and supportive housing; and  7. provider of veteran services. D. A representative each from Elevate Health and the Pierce County National Alliance on Mental Illness. The Pierce County Human Services Committee will also hold a hearing on March 3 for Resolution R2020-13 that would create the Office of Behavioral Health Oversight within the Office of the Pierce County Council, which would: • Assist the County Council develop, oversee and evaluate plans for the expenditure of monies received from the chemical dependency or mental health and therapeutic courts tax; • provide administrative staff support to the Pierce County Behavioral Health Coordinating Commission; and • Coordinate with Human Services and any other county departments to provide technical assistance to the Pierce County Behavioral Health Coordinating Commission as requested by the Chair of that Commission. This Resolution is independent of the Proposal to adopt a 0.1% MHCD tax, meaning the tax could be adopted and implemented without R2020-13 passing. 16 57  Return to Agenda ATTACHMENT B ORDINANCE NO. 72X AN ORDINANCE OF THE LAKEWOOD CITY COUNCIL RELATING TO LOCAL SALES OR USE TAXES; AUTHORIZING THE MAXIMUM CAPACITY OF THE TAX AUTHORIZED UNDER THE PROVISIONS OF SUBSTITUTE HOUSE BILL 1406 (HEREINAFTER CHAPTER 338, LAWS OF 2019) FOR AFFORDABLE AND SUPPORTIVE HOUSING; ADOPTING A NEW CHAPTER 3.25 OF THE LAKEWOOD MUNICIPAL CODE, "SALES AND USE TAX - CREDIT AGAINST PRIOR TAX"; AUTHORIZING THE CITY MANAGER TO CONTRACT WITH THE STATE OF WASHINGTON TO COLLECT THE TAX IMPOSED BY THIS ORDINANCE; REQUESTING COMPLIANCE WITH RCW 82.14.055; DIRECTING THE CITY CLERK TO TRANSMIT THE ADOPTED ORDINANCE TO THE DEPARTMENT OF REVENUE; AND REQUESTING THE CITY MANAGER TO REPORT ANNUALLY TO THE DEPARTMENT OF COMMERCE ON THE COLLECTION AND USE OF REVENUES RECEIVED. FINDINGS Whereas, Chapter 388, Laws of 2019, relating to encouraging investments in affordable housing was adopted in the 2019 session; and Whereas, the Lakewood City Council adopted Resolution No. 2019-19 declaring the City’s intent to adopt legislation pursuant to Chapter 338, Laws of 2019 to authorize a local sales and use tax credited against the state sales and use tax for affordable or supportive housing as established for cities under that statute; and Whereas, to collect the tax, a city must adopt an ordinance authorizing the tax within one year of the effective date of the bill, or July 28, 2020; and Whereas, the City is prepared to coordinate the development of a plan for use of resources consistent with Chapter 338, Laws of 2019; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKEWOOD, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Adoption of City Council Findings. The Findings of the City Council are adopted as part of this Ordinance. 17 58  Return to Agenda Section 2. A new Chapter 3.25 of the Lakewood Municipal Code, "Sales and Use Tax – Credit Against Prior Tax," is hereby adopted as shown in Exhibit A, which is attached hereto and incorporated herein by reference. Section 3. The City Manager is hereby requested to contract with the Washington State Department of Revenue to collect the local sales and use tax established by Chapter 338, Laws of 2019 and this Ordinance. Section 4. City departments are requested to take all necessary steps to implement this Ordinance as soon as possible in accordance with RCW 82.14.055. The City Clerk shall forthwith transmit a copy of this adopted Ordinance to the Washington State Department of Revenue. Section 5. The City Manager is hereby requested to report annually to the Department of Commerce on the collection and use of the revenues received as provided in Chapter 338, Laws of 2019. Section 6. Severability. If any portion of this Ordinance or its application to any person or circumstances is held invalid, the remainder of the Ordinance or the application of the provision to other persons or circumstances shall not be affected. Section 7. Effective Date. This Ordinance shall be in full force and effect thirty (30) days after final passage. ADOPTED by the City Council of the City of Lakewood this ______ day of ___________, 2020. CITY OF LAKEWOOD _______________________________ Don Anderson, Mayor 18 59  Return to Agenda Attest: _______________________________ Briana Schumacher, City Clerk Approved as to Form: _______________________________ Heidi Ann Wachter, City Attorney 19 60  Return to Agenda EXHIBIT A NEW CHAPTER LMC 3.25 Sales and Use Tax – Credit Against Prior Tax Sections: 3.25.010 Affordable and Supportive Housing Sales Tax Credit - Definitions. 3.25.020 Affordable and Supportive Housing Sales Tax Credit - Imposition. 3.25.030 Affordable and Supportive Housing Sales Tax Credit - Rate. 3.25.040 Affordable and Supportive Housing Sales Tax Credit - Deduction. 3.25.050 Affordable and Supportive Housing Sales Tax Credit - Expiration. 3.25.010 Affordable and Supportive Housing Sales Tax Credit - Definitions. "Nonparticipating City," "Nonparticipating County," "Participating City," "Participating County," and "Qualifying Local Tax" shall have the definitions provided in Section 1, Chapter 338, Laws of 2019. 3.25.020 Affordable and Supportive Housing Sales Tax Credit - Imposition. Lakewood is a Participating City under Chapter 338, Laws of 2019. There is authorized, fixed and imposed a sales and use tax on every taxable event, as defined in RCW 82.14.020, identified in Chapter 338, Laws of 2019, as appropriate for taxation by a participating city that has/has not adopted a qualifying local tax. The tax shall be imposed upon and collected from those persons from whom the state sales or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW and may only be used for affordable and supportive housing purposes as provided in Chapter 338, Laws of 2019. 3.25.030 Affordable and Supportive Housing Sales Tax Credit - Rate. The rate of the tax imposed by LMC 3.____ shall be the maximum rate permitted cities that have/have not adopted a qualifying local tax under Chapter 338, Laws of 2019. 3.25.040 Affordable and Supportive Housing Sales Tax Credit - Deduction. The tax imposed under this Section must be deducted from the amount of tax otherwise required to be collected or paid to the Department of Revenue under Chapters 82.08 or 82.12 RCW. 3.25.050 Affordable and Supportive Housing Sales Tax Credit - Expiration. The tax imposed by this Chapter expires 20 years after the date on which the tax is first imposed. 20 61  Return to Agenda ATTACHMENT C ORDINANCE NO. 72X AN ORDINANCE OF THE LAKEWOOD CITY COUNCIL RELATING TO LOCAL SALES OR USE TAXES AND AUTHORIZING 0.1% SALES OR USE TAX FOR CHEMICAL DEPENDENCY OR MENTAL HEALTH TREATMENT SERVICES OR THERAPEUTIC COURTS FINDINGS WHEREAS, RCW 82.14.460 provides that any city with a population over 30,000 located in a county with a population over 800,000 may authorize, fix, and impose a sales and use tax for chemical dependency or mental health treatment services or therapeutic courts, so long as the county has not previously imposed such a tax; and WHEREAS, Pierce County has not imposed such a tax; and WHEREAS, RCW 82.14.460 further provides that revenue received through the tax must be used to fund programs that operate or deliver programs and services related to chemical dependency, mental health, and therapeutic courts, including, but not limited to, treatment services, case management, and housing; and WHEREAS, RCW 82.14.460 further provides that, in any city with a population over 30,000, up to fifty percent (50%) of the revenue received through the tax may be used to supplant existing funding for up to the first three calendar years following adoption; and up to twenty-five percent may be used to supplant existing funding for the fourth and fifth years after adoption; and WHEREAS, those struggling with mental health and chemical dependency issues in our community are underserved in terms of programs and services; and WHEREAS the proposed amendments to Chapter 3.24 Lakewood Municipal Code (LMC) will establish the new Sections 3.24.025 and 3.24.026 LMC that impose an additional retail sales tax of one-tenth of one percent (0.1%), effective __________, to address unmet 21 62  Return to Agenda community needs and fund programs and services in the City related to mental health, chemical dependency, and therapeutic courts; and WHEREAS, pursuant to RCW 82.14.460, the City intends to use a portion of the revenue to supplant existing funding for such programs and services with revenue received through the proposed tax, to protect these vital services from existing financial constraints; and WHEREAS, the City further intends to propose future legislation establishing the process by which the programs related to mental health, chemical dependency, and therapeutic courts would be implemented with revenue received through the proposed tax; and WHEREAS, the signed ordinance must be provided to the State of Washington, Department of Revenue by ______________, in order for the sales tax increase to be implemented by the beginning of the ___________ quarter of 2020; and WHEREAS [City staff will conduct a mental health service needs assessment in the spring and summer of 2012, which will be used to develop strategies, priorities, and objectives]; and WHEREAS, the proposed amendments have been discussed and reviewed at _____________ [the January 12, 2012, and January 26, 2012, Public Safety, Human Services, and Education Committee ("PSHSE") meetings, and received a "do pass" from the PSHSE at the January 26, 2012 meeting]; and WHEREAS, the proposed amendments having been reviewed and approved by the _____________, and programs and services in the City related to mental health, chemical dependency, and therapeutic courts having been identified as funding priorities, the set of proposed changes to the local option taxes is now identified as a prudent potential revenue source; 22 63  Return to Agenda NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKEWOOD, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Adoption of City Council Findings. The Findings of the City Council are adopted as part of this Ordinance. Section 2. New Sections 3.24.025 and 3.24.026 of the Lakewood Municipal Code, "Sales Tax," are hereby adopted as shown in Exhibit A, which is attached hereto and incorporated herein by reference. Section 3. The City Manager is hereby requested to contract with the Washington State Department of Revenue to collect the local sales and use tax established by Chapter 338, Laws of 2019 and this Ordinance. Section 4. City departments are requested to take all necessary steps to implement this Ordinance as soon as possible in accordance with RCW 82.14.055. The City Clerk shall forthwith transmit a copy of this adopted Ordinance to the Washington State Department of Revenue. Section 5. The City Manager is hereby requested to report annually to the Department of Commerce on the collection and use of the revenues received as provided in Chapter 338, Laws of 2019. Section 6. Severability. If any portion of this Ordinance or its application to any person or circumstances is held invalid, the remainder of the Ordinance or the application of the provision to other persons or circumstances shall not be affected. Section 7. Effective Date. This Ordinance shall be in full force and effect thirty (30) days after final passage. ADOPTED by the City Council of the City of Lakewood this ______ day of ___________, 2020. 23 64  Return to Agenda CITY OF LAKEWOOD _______________________________ Don Anderson, Mayor Attest: _______________________________ Briana Schumacher, City Clerk Approved as to Form: _______________________________ Heidi Ann Wachter, City Attorney 24 65  Return to Agenda EXHIBIT “A” Chapter 3.24 SALES TAX 3.24.010 Imposition of sales and use tax as authorized by RCW 82.14.030(1). 3.24.020 Imposition of sales and use tax as authorized by RCW 82.14.030(2). 3.25.025 Additional sales or use tax for mental health treatment-Imposition. 3.25.026 Additional sales or use tax for mental health treatment-Rate. 3.24.030 Administration – Collection. 3.24.040 Inspection of records – Agreement with Department of Revenue. 3.24.050 Subject to referendum. 3.24.060 Penalty. ***** 3.24.025 Additional sales or use tax for mental health treatment - Imposition. There is hereby imposed an additional sales or use tax, as the case may be, separate and apart from the tax referred to in Sections 3.24.010 and .020, as authorized by RCW 82.14.460(1)(b), upon every taxable event as defined in RCW 82.14.020, occurring within the City. The tax shall be imposed upon and collected from those persons from whom the state sales tax or use tax is collected pursuant to RCW 82.08 and 82.12. Moneys collected under this subchapter must be used solely, as required by RCW 82.14.460(3) and as hereinafter amended for the purpose of providing for the operation or delivery of chemical dependency or mental health treatment programs and services and for the operation or delivery of therapeutic court programs and services. 3.24.026 Additional sales or use tax for mental health treatment - Rate. The rate of the tax imposed by Section 3.24.025 of this chapter shall be one-tenth of one percent (0.1%) of the selling price or value of the article used, as the case may be. ***** 25 66