City Council

LAKEWOOD CITY COUNCIL STUDY SESSION AGENDA Monday, July 14, 2025 7:00 P.M. City of Lakewood Council Chambers 6000 Main Street SW Lakewood, WA 98499 Residents can virtually attend City Council meetings by watching them live on the city’s YouTube channel: https://www.youtube.com/user/cityoflakewoodwa Those who do not have access to YouTube can call in to listen by telephone via Zoom: Dial +1(253) 215- 8782 and enter meeting ID: 868 7263 2373 ________________________________________________________________ Page No. 1 CALL TO ORDER ITEMS FOR DISCUSSION: (3) 1. Joint Lodging Tax Advisory Committee meeting. – (Memorandum) (10) 2. Review of 2nd Quarter (2025) Police Report. – (Power Point) (23) 3. Review of Multifamily Tax Exemption Program. – (Memorandum) (28) 4. Review of Pacific Point Defense Contract Amendment. – (Memorandum) ITEMS TENTATIVELY SCHEDULED FOR JULY 21, 2025 CITY COUNCIL MEETING: 1. Business Showcase. – Children’s Trading Post, Shyanne Corrente 2. Authorizing the execution of an amendment to the agreement with Pacific Point Desfense for public defense services. – (Motion- Consent Agenda) 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- July 14, 2025 3. Authorizing the execution of an amendment to the agreement with Tax Recovery Services. – (Motion- Consent Agenda) 4. Authorizing the execution of an amendment to the agreement with the Washington State Healthcare Authority for Lakewood’s CHOICE. – (Motion- Consent Agenda) 5. Conditionally approving the Alliance Residential Apartments, 12-year, Multifamily Tax Exemption (MFTE). – (Resolution – Regular Agenda) 6. Conditionally approving the Springbrook (Annex) Apartments Phase II, 8-year, Multifamily Tax Exemption (MFTE). – (Resolution – Regular Agenda) 7. Pierce Transit Long Range Plan Update – Ryan Wheaton, Pierce Transit – (Item for Discussion – Regular Agenda) 8. Abatement Program Update. – (Item for Discussion – Regular Agenda) 9. Review of 2025 Development Regulation Updates. – (Item for Discussion – Regular Agenda) REPORTS BY THE CITY MANAGER CITY COUNCIL COMMENTS ADJOURNMENT 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: Mayor and City Councilmembers From: Tho Kraus, Deputy City Manager/Chief Financial Officer Dana Kapla, Assistance Finance Director Through: Tho Kraus, Interim City Manager Date: July 14, 2025 Subject: Joint Lodging Tax Advisory Committee Meeting Overview As authorized under state law, the City of Lakewood has enacted a lodging tax. The City receives a 7% share of the taxes collected by Washington State from lodging-related businesses located within the City. The 7% breaks down into 4% which can be used for tourism promotion, or the acquisition and operation of tourism-related facilities. The additional 3% is restricted to the acquisition, construction, expansion, marketing, management, and financing of convention facilities, and facilities necessary to support major tourism destination attractions that serve a minimum of one million visitors per year. This memo discusses the City’s Lodging Tax Advisory Committee (LTAC), the estimated funds available, how the funds may be used and the upcoming 2026 grant allocation process. Lodging Tax Advisory Committee If a city collects lodging tax, state law requires the formation of a Lodging Tax Advisory Committee (LTAC). The committee must have at least five (5) members, each member must be appointed by the City Council and the committee membership must be comprised of the following: • At least two members of the committee must represent businesses required to collect the tax; and • At least two members of the committee must represent entities who are involved in activities authorized to be funded by the tax; and • One elected official of the City, who serves as chairperson of the committee. There is no maximum number of participants on the LTAC; however, there must be equal members representing businesses authorized to collect and entities authorized to receive funding. Mayor Jason Whalen currently serves as Chair. Other committee members include: Represent Businesses Authorized to Collect Jarnail Singh, Comfort Inn & Suites (Term Expires 12/31/2025) DJ Wilkins, Best Western Lakewood (Term Expires 12/31/2025) 3  Return to Agenda Represent Businesses Authorized to Receive * Linda K. Smith, Lakewood Chamber of Commerce Dean Burke, Travel Tacoma + Pierce County, WA *Per Lakewood Municipal Code (LMC) 3.36.055, the appointing authority shall review the membership of the Advisory Committee annually and make changes as appropriate. Therefore, the term is considered at will and the appointment is subject to termination by Council if necessary to maintain the balance required by law; i.e. At least two members who are representatives of businesses required to collect tax under this chapter; and b. At least two members who are persons involved in activities authorized to be funded by revenue received under this chapter. One role of the LTAC is to make recommendations to the City Council in regard to how the taxes are to be used. All applicants for awards of lodging tax must apply to the City through the LTAC. The LTAC receives all applications for lodging tax revenue and recommends a list of candidates and funding levels to the City council for final determination. By state law, the City Council may choose only recipients from the list of candidates and recommended amounts provided by the LTAC. An August 2016 informal opinion from the Attorney General’s Office interpreted this to mean that the legislative body may award amounts different from the LTAC’s recommended amounts, but only after satisfying the procedural requirements which requires that the City submit its proposed change(s) to the LTAC for review and comment at least 45 days before final action is taken. The objective of the LTAC process is to support projects which encourage eligible tourism and cultural activities that support tourism in Lakewood. The members of the committee will carefully consider each request based on the following criteria: funds available; past performance; ability to attract tourism, particularly from outside the 50-mile radius; strength of the applications; and the City’s desire to retain dollars for future capital project(s). The general, LTAC annual work plan is as follows: Jul: Joint LTAC meeting to review guidelines, past grants awarded and potential funding for the following year’s grant allocation. Sep: Listen to applicant presentations and make funding recommendations. Nov: Present recommendations to the City Council. Grant Awards Process, Estimated Available Funds and Reporting Requirements Grant Application Process Any organization, including businesses and the City, can use the funds to advertise and promote tourism through the media. The promotion must be designed to attract tourists to Lakewood with the goal of increasing the number of overnight stays in lodging facilities located within the City. Capital projects funding is limited to those under City ownership. 2025 LTAC Application Schedule for 2026 Grant Awards (subject to change): 4  Return to Agenda Estimated Available Funds The City estimates the 2025 projected revenue amount to be $1,351,2550 and the estimated ending fund balance to be $4,143,068 on December 31, 2025. In 2007, the City entered into an agreement with Clover Park Technical College to contribute 11% of the construction costs for the McGavick Center. The contribution is in equal installments of $101,850 over 20 years (last installment is June 2026). In return for the contribution, the City has use of the center for 18 days per year for a 30-year period to be used for tourism related activities. The City’s practice has been to use the available restricted funds for this commitment. The available balance for 2026 grant allocation, net of the required McGavick Center contribution is $4,041,218. Restrictions on Use 4% 3% (Restricted) Reserved for tourism, promotion, Reserved for acquisition, acquisition of tourism related construction, expansion, Total Estimated Funding Available facilities, or operation of tourism marketing, and management of for 2026 Grant Awards related facilities. convention facilities. Total Estimated Ending Balance, 12/31/2025 $1,154,302 $2,988,766 $4,143,068 Less Required for CPTC McGavick Center $0 ($101,850) ($101,850) Total $1,154,302 $2,886,916 $4,041,218 Note: The 3% is restricted to capital; however, the 4% is not restricted and may be used for capital as well. Sources & Uses - 5 Year History 2020 Actual 2021 Actual 2022 Actual 2023 Actual 2024 Actual 2025 Estimate Revenues 4% Revenue: Special Hotel/Motel Tax (2%) $ 247,803 $ 353,906 $ 400,024 $ 368,797 385,539 363,214 Transient Rental Income Tax (2%) 247,803 355,057 400,029 371,775 389,426 363,216 495,606 708,963 800,053 740,572 774,965 726,430 3% Revenue: Special Hotel/Motel Tax (3%) 371,705 530,858 600,036 553,196 578,308 544,820 371,705 530,858 600,036 553,196 578,308 544,820 Interest Income 7,693 2,118 38,681 138,869 162,928 80,000 GASB 87 - CPTC McGavick Lease - - - 213,567 219,013 - Total Revenues $ 875,004 $ 1,241,939 $ 1,438,770 $ 1,646,204 1,735,214 1,351,250 Tourism/Promotion 354,665 425,639 632,177 747,951 958,694 1,155,000 Capital 421,943 169,899 101,850 101,850 101,850 101,850 GASB 87 - CPTC McGavick Lease - - - 213,567 219,013 Total Expenditures $ 776,608 $ 595,538 $ 734,027 $ 1,063,368 1,279,557 1,256,850 Beginning Balance $ 1,560,638 $ 1,659,034 $ 2,305,432 $ 3,010,174 3,593,011 4,048,668 Ending Balance $ 1,659,034 $ 2,305,432 $ 3,010,174 $ 3,593,009 4,048,668 4,143,068 From 4% Unrestricted 1,118,285 1,403,034 1,594,448 1,660,626 1,552,201 1,154,302 From 3% Restricted 540,749 902,398 1,415,725 1,932,383 2,496,467 2,988,766 Estimated Ending Fund Balance from the 4% Unrestricted Revenue => 1,552,201 1,154,302 Estimated Ending Fund Balance from the 3% Restricted (for Capital) Revenue => 2,496,467 2,988,766 5  Return to Agenda Previous Grant Awards The following table provides a 6-year history of grant awards. Lodging Tax Grant Award History (2020-2025) Applicant 2025 2024 2023 2022 2021 2020 Asian Pacific Cultural Center 15,000 15,000 15,000 15,000 15,000 10,000 CoL - Concert Series 30,000 30,000 30,000 20,000 20,000 20,000 CoL - Farmers Market 78,000 78,000 57,000 35,000 35,000 20,000 CoL - Lakewood Film Festival, REEL Life 96 - - - 17,100 - - CoL - Love Lakewood Festival Series, First Saturday - - - 30,000 - - CoL - MLK Beloved Community 10,000 - - - - - CoL - Media Production/Imaging Promotion 80,000 75,000 60,000 50,000 40,000 30,000 CoL - SummerFEST 210,000 193,000 135,000 80,000 80,000 80,000 CoL - Saturday Street Festivals on Motor Avenue 10,000 15,000 37,500 - - - CoL - Sister Cities Gimhae Delegation K-Pop Visit 9,000 - - - - - CoL - Fiesta de la Familia 35,000 27,000 - - - - CoL - Gimhae Delegation Visit 23,500 35,000 - - - - Friends of Lakewold/Lakewold Gardens 200,000 200,000 100,000 85,000 50,000 50,000 Grave Concerns 15,000 10,000 5,000 - - - Historic Fort Steilacoom Association 12,000 15,000 12,000 15,000 12,000 12,000 Lakes Cross Country Booster Club 7,000 6,500 - - - - Lakewood Arts Festival Association - - 23,000 20,500 19,500 19,500 Lakewood Chamber of Commerce - Memorial Day Concert 7,500 - - - - - Lakewood Chamber of Commerce - Night of Lights - - 25,000 25,000 25,000 20,000 Lakewood Chamber of Commerce - Tourism 125,000 112,000 100,000 100,000 90,000 90,000 Lakewood Historical Society 38,000 39,500 32,500 35,000 35,000 42,000 Lakewood Playhouse 100,000 35,000 25,000 25,000 25,000 23,000 Lakewood Sister Cities Association - - - - - 23,900 Lakewood Sister Cities Association - Gimhae - - 21,500 20,550 16,350 - Lakewood Sister Cities Association - Internat'l Festival - 23,950 9,000 5,500 7,550 - Tacoma Pierce County Sports Commission - - - - - - Travel Tacoma + Pierce County Tourism Authority 150,000 115,000 115,000 100,000 100,000 120,000 Total Non-Capital (4%) 1,155,000 1,024,950 802,500 678,650 570,400 560,400 CoL - Gateway Improvements - - - - - 150,000 Total Capital (3%) - - - - - 150,000 $ 1,155,000 $ 1,024,950 $ 802,500 $ 678,650 $ 570,400 $ 710,400 CPTC McGavic Center (Committee, Annual Payment) 101,850 101,850 101,850 101,850 101,850 101,850 $ 1,256,850 $ 1,126,800 $ 904,350 $ 780,500 $ 672,250 $ 812,250 Post-Funding Report: JLARC (Joint Legislative Audit & Review Committee) requires post-funding reporting of predicted and actual number of people who attended, and the method used to determine attendance for various categories including: overall attendance; 50+ miles from their residence; out of state and out of country; paid for overnight lodging; did not pay for overnight lodging; and number paid lodging nights. All entities receiving lodging tax funds must provide this information to the City. The City will then report this information annually to JLARC. The information as reported to JLARC for the 2024 grant program is included as an attachment. 6  Return to Agenda City of Lakewood Lodging Tax Funding Guideline As Amended by the City Council on September 21, 2015 Background The objective of the City of Lakewood Lodging Tax Advisory Committee process is to support projects, which encourage eligible tourism and cultural activities and support tourism facilities in Lakewood. The process is reviewed annually, and the guidelines are updated in accordance with reported success of existing programs, potential for new programs and changes in state law. A calendar for the application process will be established but will allow for emerging opportunities as they arise. Objectives for Hotel/Motel Tax Funds: • Generate increased tourism in Lakewood resulting in overnight stays at local hotels. • Generate maximum economic benefit through overnight lodging, sale of meals and goods, and construction of tourism-related facilities. • Increase recognition of Lakewood throughout the region as a destination for tourism. • Increase opportunities for tourism by developing new visitor activities. Allocation Guidelines: • The City shall seek proposals for funding on an annual basis from organizations seeking to use Hotel/Motel Tax funds for promoting tourism or for acquisition, construction or operation of tourism related facilities. • Organizations seeking funding must complete an application form. • The Lodging Tax Advisory Committee shall review the proposals and make recommendations to City Council as to which applications should receive funding. • The final funding decision will be made by City Council in the form of approval or denial of the recommendation as recommended – no amendments to recommendations will be made by the City Council. • Once approved for funding an organization must enter into a contract and funding will be provided in quarterly installments or on a reimbursable basis. • Organizations receiving funding must submit a report at the end of the calendar year. • $101,850 will be paid annually to the Sharon McGavick Student Center through 2027 pursuant to the City’s agreement with Clover Park Technical College. 7  Return to Agenda • 4% - Can be used for tourism promotion, or the acquisition of tourism-related facilities, or operation of tourism-related facilities. • 3%- Can only be used for the acquisition, construction, expansion, marketing, management, and financing of convention facilities, and facilities necessary to support major tourism destination attractions that serve a minimum of one million visitors per year. 8  Return to Agenda City of Lakewood 2024 LTAC Awardees (Reported to JLARC) Overall Attendance 50+ Miles Out of State Overnight Non - Overnight Paid Lodging Funds Organization Name Type Awarded Predicted Actual Predicted Actual Predicted Actual Predicted Actual Predicted Actual Predicted Actual Asia Pacific Cultural Event/Festival $ 15,000 5,000 8,500 1,500 3,000 300 500 4 3 100 400 50 100 Center City of Lakewood Event/Festival $ 78,000 52,000 66,843 6,500 12,000 3,500 6,000 3,500 3,500 61,500 63,343 3,000 3,000 City of Lakewood Event/Festival $ 27,000 8,000 8,000 1,200 1,200 800 800 800 800 7,200 7,200 8,000 8,000 Lakes Cross Country Event/Festival $ 6,500 8,000 8,000 2,000 2,000 100 100 500 500 7,500 7,500 125 125 Booster Club City of Lakewood Event/Festival $ 35,000 15 4 15 4 15 4 15 - - 4 15 - Lakewood Sister Cities Event/Festival $ 23,950 5,000 8,000 800 1,000 80 100 50 45 4,950 7,950 80 80 Association Lakewood Historical Facility $ 39,500 750 679 5 11 15 19 5 13 10 16 5 13 Society & Museum Grave Concerns Event/Festival $ 10,000 1,000 5,100 500 500 50 10 10 - 5,000 5,010 10 - Association City of Lakewood Marketing $ 75,000 33,000 40,000 12,500 1,000 15 4 500 500 28,000 35,500 500 500 Historic Fort Steilacoom Marketing $ 15,000 650 703 40 45 10 28 5 15 640 688 5 15 Assn. Lakewold Gardens Event/Festival $ 200,000 10,000 11,490 1,000 967 800 722 100 54 9,900 11,436 150 81 City of Lakewood Event/Festival $ 15,000 8,000 8,000 800 800 200 200 200 200 7,800 7,800 200 200 Lakewood Playhouse Marketing $ 35,000 4,154 4,816 70 30 30 25 50 25 4,766 4,716 100 100 Tacoma Regional CVB Marketing $ 115,000 249,954 603,215 108,951 411,366 112,868 223,569 218,727 407,727 66,186 89,498 109,546 185,201 ("Visit Tacoma-Pierce City of Lakewood Event/Festival $ 30,000 3,700 4,500 675 675 45 45 45 45 4,455 4,455 45 45 City of Lakewood Event/Festival $ 193,000 25,000 40,000 6,000 6,000 4,000 4,000 3,000 3,000 36,000 36,000 3,000 3,000 Lakewood Chamber of Marketing $ 112,000 10,000 8,000 8,000 6,500 2,000 1,500 8,000 6,500 2,500 1,250 20,000 16,000 Commerce $1,024,950 424,223 825,850 150,556 447,098 124,828 237,626 235,511 422,927 246,507 282,766 144,831 216,460 9  Return to Agenda LAKEWOOD POLICE QUARTERLY STATS April - 2nd Quarter 2025 June 10 Calls for Service Return to Agenda *Calls for Service include resident calls for service in Lakewood’s jurisdiction & self-initiated activity by officers. By Quarters 2023 2024 2025 Year To Date 20,000 26,468 24,130 24,840 15,000 15,015 13,921 13,233 12,547 12,385 12,335 12,455 12,438 12,447 11,795 10,000 5,000 0 0 0 Q1 Q2 Q3 Q4 2023 2024 2025 11 Lakewood PD Stats – 2nd Quarter 2025 (Apr-Jun) Arrests Return to Agenda *Arrests are counted by the highest charge for an individual under the same case number. Example: an individual arrested on multiple charges (Felony, Misdemeanor and Warrant) under the same case number will only be counted as a Felony arrest. Previous Quarter 2ndQ Comparisions Year To Date Comparison 592 977 1,056 464 466 484 464 866 ARREST TOTALS 1stQ 2025 2ndQ 2025 2023 2024 2025 2023 2024 2025 12 Lakewood PD Stats – 2nd Quarter 2025 (Apr-Jun) Crimes Against PERSONS Return to Agenda Previous Quarter 2ndQ Comparisions Year To Date Comparison 430 407 807 818 367 339 339 706 PERSON TOTALS 1stQ 2025 2ndQ 2025 2023 2024 2025 2023 2024 2025 13 Lakewood PD Stats – 2nd Quarter 2025 (Apr-Jun) Crimes Against PROPERTY & SOCIETY Return to Agenda Previous Quarter 2ndQ Comparisions Year To Date Comparison 1,153 2,312 680 619 1,549 PROPERTY 769 619 1,299 TOTALS 1stQ 2025 2ndQ 2025 2023 2024 2025 2023 2024 2025 14 Lakewood PD Stats – 2nd Quarter 2025 (Apr-Jun) Pursuits & Eluding Return to Agenda Five Year Trend by Quarter Year to Date Comparision 140 200 180 120 160 100 140 120 80 100 60 80 60 40 40 20 20 0 0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 2021 2022 2023 2024 2025 Pursuits 11 6 3 5 6 9 7 9 9 9 6 5 8 16 33 34 16 15 Pursuits 17 15 18 24 31 Eluding 10 6 8 72 118 55 63 84 82 60 73 78 34 38 33 31 16 16 Eluding 16 173 142 72 32 15 Lakewood PD Stats – 2nd Quarter 2025 (Apr-Jun) Shots Fired Return to Agenda *Numbers include Calls for Service within Lakewood with a call type of SHOOT, SHOTS, or SHOTSD. By Quarters 2023 2024 2025 Year To Date 128 118 244 116 114 113 96 202 84 78 62 112 50 0 0 Q1 Q2 Q3 Q4 2023 2024 2025 16 Lakewood PD Stats – 2nd Quarter 2025 (Apr-Jun) Motor Vehicle Thefts Return to Agenda By Quarters 2023 2024 2025 Year To Date 659 345 314 310 213 140 217 88 100 77 75 38 50 0 0 Q1 Q2 Q3 Q4 2023 2024 2025 17 Lakewood PD Stats – 2nd Quarter 2025 (Apr-Jun) Collisions Return to Agenda *Reports taken by Lakewood PD for Collisions. By Quarters 2023 2024 2025 Year To Date 535 311 486 449 290 284 266 270 238 245 238 220 211 Q1 Q2 Q3 Q4 2023 2024 2025 18 Lakewood PD Stats – 2nd Quarter 2025 (Apr-Jun) Summary of Crimes Return to Agenda Lakewood PD 2nd Quarter 2025 (Apr-Jun) 19  Lakewood Firework Analysis 2016 - 2025 Return to Agenda Calls for Shots Fired Fireworks CFS By Day Firework CFS Dispositions July 3-5 Service (CFS) CFS Patrol Checks Unfounded Solved All Car Citations Cancelled Online Verbal July 1-6 Year July 3rd July 4th July 5th July 3-5 July 3rd July 4th July 5th GOA On Arrival Broadcast Total Reports 2016 164 190 224 5 102 16 34 25 0 4 0 0 26 1 3 0 2017 206 221 192 1 104 18 41 12 0 1 0 0 92 4 6 0 2018 196 225 221 1 92 9 44 23 0 4 4 1 63 4 14 0 2019 201 226 196 5 84 13 45 11 0 0 1 1 57 3 5 0 2020 171 212 165 4 116 18 42 30 0 1 0 0 71 0 6 9 2021 187 193 152 3 78 11 25 15 0 6 0 0 3 0 19 22 2022 138 165 196 6 69 13 30 14 0 10 0 1 0 4 8 33 2023 223 288 260 4 83 17 27 14 0 0 0 0 46 0 3 9 46 2024 204 223 200 5 74 7 46 9 0 1 0 0 59 0 1 0 59 2025 189 220 187 1 98 19 31 27 0 0 1 0 66 1 7 2 20 66 Firework Return to Agenda JULY 3RD Calls for Service 16 18 9 13 18 11 13 17 7 19 2 016 2 017 2 018 2 019 2 02 0 2 02 1 2 02 2 2 02 3 2 02 4 2 02 5 July 1st - 6th JULY 4TH 41 44 45 42 46 34 30 31 25 27 116 102 104 98 92 84 83 78 74 69 2 016 2 017 2 018 2 019 2 02 0 2 02 1 2 02 2 2 02 3 2 02 4 2 02 5 JULY 5TH 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 25 30 27 23 12 11 15 14 14 9 21 2 016 2 017 2 018 2 019 2 02 0 2 02 1 2 02 2 2 02 3 2 02 4 2 02 5  Calls for Service 2025 Return to Agenda 37 39 35 29 32 25 Fire Department JULY 1ST JULY 2ND JULY 3RD JULY 4TH JULY 5TH JULY 6TH 132 120 113 105 97 93 Lakewood Police JULY 1ST JULY 2ND JULY 3RD JULY 4TH JULY 5TH JULY 6TH 22  Return to Agenda TO: Mayor and City Councilmembers FROM: Jeff Rimack, Director, Planning and Public Works Department, and Becky Newton, Economic Development Manager THROUGH: Tho Kraus, Interim City Manager DATE: July 14, 2025 SUBJECT: MULTIFAMILY TAX EXEMPTION PROGRAM Background The City Council held a Public Hearing on November 6, 2023 to review updates to the Multifamily Tax Exemption (MFTE) program. On November 20, 2023 City Council adopted Ordinance 792 amending Lakewood Municipal Code Title 3.64 Revenue and Finance Property Tax Exemption for Multifamily Housing. Subsequent meetings, including study sessions and public hearings were held in 2024 and 2025 including the following. January 15, 2025 Planning Commission review of program and RTAs. May 19, 2025 City Council held a Public Hearing on proposed amendments. Ordinance 832 was adopted June 2, 2025 which included expansions of the Central Business District and Springbrook RTAs as well as adding a Tillicum area RTA. Ordinance 832 also updated the application procedure for clarity and removed the 12-year extension. MFTE Purpose The MFTE is a much needed and significant economic development tool. Construction is the largest contributor of economic growth via new tax revenue for all jurisdictions. The MFTE is meant to increase economic growth 23  Return to Agenda by supporting the development of a variety of new long term housing types both owner-occupied and for rent, that increase economic growth while also helping cities meet comprehensive plan goals for density and growth. Clarity of process and predictability of project certification are the most important to the success of the MFTE program. Housing Needs Lakewood must see growth at a pace of approximately 500 net new units built per year in order to meet the Comprehensive Plans 2044 citywide growth targets. Benefits of the MFTE program: • Helps to stimulate redevelopment and growth and follows City’s plans • New housing generates property tax dollars, creates jobs and stimulates the economy • Motivates reinvestment in Lakewood • Provides more housing, lower and mid-range • Housing expansion is crucial for the continued population growth and success of Lakewood • Imperative to have sufficient housing options to accommodate growth • Housing in close proximity to commercial drives foot traffic, helps businesses to thrive and promotes revitalization Common threads we hear about development: • Concern about tree removal, noise pollution, and security/crime • Some residents are opposed to developers receiving incentives • Belief that more density will take away from the community • Concern about water quality, runoff, erosion, and human activity Ancillary and economic benefits of housing and economic growth: • Enhanced Community Diversity: New housing attracts residents from different backgrounds and income levels, fostering inclusive neighborhoods with diverse perspectives and cultures. 24  Return to Agenda • Infrastructure Investment: Housing projects often trigger and provide taxes for upgrades in roads, public transit, schools, utilities, and health services • Environmental Revitalization: Smart development can replace underutilized land, improve water quality, help conserve ecosystems and cut emissions. • Job Creation: Construction, real estate, and service industries boom with new housing, bringing jobs not only during the build but also in the long-term through retail, healthcare, and education. • Local Spending Power: New residents mean more foot traffic for local businesses, think cafes, salons, groceries, and small shops, fueling the local economy. • Expanded Tax Base: Property taxes and related fees from new developments provide municipalities with more funding for public services like safety, education, and recreation. • Business Attraction & Retention: Companies prefer to settle in areas where their workforce can live nearby, so housing growth and availability make a region more competitive in attracting industries. Economic Impact Housing growth provides significant economic impact. Here is one example. Category Sample Project Impacts ** Units 200 multifamily units Construction Jobs ~250 direct / ~150 indirect Construction Cost $60 million Local Spend % 60% Permanent Jobs 20 Annual Output $2.5 million New Residents 600 Property Tax $750k annually Utility Fees $200k annually Retail Spending $2–3 million annually **In totality this equates to an additional $5.45M influx annually for the Lakewood community and businesses. 25  Return to Agenda Two projects will be coming forward for City Council Resolution this month. Springbrook II, shown below, is a 76-unit market rate project Alliance Residential is a 309-unit project in the Central Business District to include 62 affordable units (20% of total). Property tax revenue is illustrated below. 26  MULTI-FAMILY TAX EXEMPTION PROGRAM Projects and Property Tax Revenues Property Tax Revenue w/ MFTE & w/o MFTE All Projects $60,000,000 1000% 900% $50,000,000 800% $41,487,000 700% $40,000,000 % of increase from MFTE 600% $27,048,460 Millions $30,000,000 500% 400% 30 of 444 $20,000,000 $14,058,388 300% 200% $10,000,000 $5,762,229 $1,474,665 $2,541,070 $4,560,342 100% $797,548 $2,461,094 $3,273,901 $1,546,844 $307,615.76 $0 0% 4 Year MFTE Revenue 8 Year MFTE Revenue 12 Year MFTE Revenue 16 Year MFTE Revenue 20 Year MFTE Revenue 24 Year MFTE Revenue Totals Totals Totals Totals Totals Totals Revenue in 4 year increments No MFTE Additional from MFTE % of increase from MFTE Expon. (No MFTE) Expon. (Additional from MFTE ) City of Lakewood Planning & Public Works Department April 8, 2025 27  Return to Agenda TO: Mayor and City Councilmembers FROM: Michael Vargas, Assistant to the City Manager/Policy Analyst THROUGH: Tho Kraus, Interim City Manager DATE: Monday, July 14, 2025 SUBJECT: Pacific Point Defense – Contract Amendment ATTACHMENTS: Contract Addendum Pacific Point Defense Background: The City has a contract with Pacific Point Defense (formerly known as Horwath Law) for public defense services, with a contract term that began in 2021 and terminates on December 31st, 2025. Throughout the current contract term, two amendments have been made to the contract: A 2022 amendment to increase attorney compensation to address historic cost-of-living inflation and attorney labor market pressures, and a 2024 amendment to align the definition of case equivalents with that of the Washington State Bar Association’s Indigent Defense Standards, further increasing attorney compensation. Indigent Standards Background: • In March 2024, the Washington State Bar Association (WSBA) approved and released its updated Indigent Defense Standards. Misdemeanor caseloads were set to decrease to 120 cases per attorney, to beginning July 2025. • The Washington State Supreme Court released its interim order in June 2025, which stated the 120 misdemeanor caseload limit would begin implementation January 2026, and could be reached by January 2036, allowing for a 10-year implementation window. • Implementation may be accomplished in a phased approach with an annual reduction of at least 10% of the difference between the current standard and the new standard (as measured on January 1, 2026), until the new standard has been met. • The current standard for misdemeanor cases is 400 cases per attorney, and the new standard is 120 cases, a difference of 280 cases. Each year, the caseload limit must decrease by at least 10%, or 28 cases, if full compliance is to be achieved by January 2036. Amendment: The proposed amendment examined in this memo amends the current 2021-2025 contract to achieve two items: 1) Increase the contract term by one year, with a new termination date of December 31st, 2026, to align with the City’ biennium budget cycle. 2) Increase compensation to cover the increased number of attorneys needed to address the new lower misdemeanor caseload limits. 28  Return to Agenda Compensation Schedule Proposal Pacific Point Defense Amendment Analysis Annual Compensation FTEs 1740 cases for all scenarios 2025 2025 2025 Proposed 2026 Proposed 2025 Current 2026 Proposed Current Proposed Attorneys $ 525,000 $ 596,000 $ 750,000 4 4.5 5.5 Supervising Attorney $ - $ 74,250 $ 92,000 0 0.45 0.5 Legal Assistants $ 132,000 $ 139,200 $ 186,000 2 1.5 2 Business Manager/Receptionist $ 32,000 $ 29,500 $ 63,000 1 0.5 0.5 Offense Expenses $ 7,000 $51,578 $90,000 n/a n/a n/a Total Annual Cost $ 696,000 $ 890,528 $ 1,181,000 7 6.95 8.5 Recommendation: The City Council should approve the amendment to the current contract to increase the contract term by one year, ending in December 31st, 2026, and increase the compensation schedule to $890,528 for 2025 and $1,181,000 in 2026. What can the Lakewood Municipal Court control? • Calendars: Through efficient calendaring, the Courts may be able to reduce the number of times PPD attorneys are physically present in Court. By reducing the time PPD attorneys physically spend in court, case credits will be reduced, and the chance of exceeding the contractual case limit is reduced. • Indigent Screening: Indigent screening is controlled by RCW 10.101.020. The Lakewood Municipal Court can assign the indigent screening function to one of three parties: a public defense firm (current method), city staff, or court staff. More diligent indigent defense screening may result in fewer public defense case assignments. What can the City control? • Annual Case Limit: PPD staffs LMC attorneys based on annual case limits. The current case limit of 1740 was based on an estimate of 4 LMC attorneys, at 400 cases per attorney, with about 140 case credits as a buffer to cover attorney time spent in court. The City can set a lower annual case limit, and thus decrease contract compensation, if public defense cases decrease over time. • Compensation Schedule: The City can adopt a compensation schedule similar to Lacey’s PPD contract, specifically outlining FTEs for attorneys and support staff ratios as outlined in the indigent defense standards. This approach controls costs through right-size staffing. • Legislative Advocacy: The City may continue to advocate for additional public defense funding at the state level, via programs such as OPD’s 10.101 grant, well as advocate for changes in the indigent standards via the Washington State Supreme Court, as was pursued in 2024. The City supports keeping the current WSBA caseload and compensation schedule standards, along with adequate levels of state funding for indigent defense that is standardized and non-competitive to ensure more equitable funding and uniform application of justice. It is recommended that the City pursue public defense funding as a top priority in the 2026 legislative session. 29  Return to Agenda Appendix: Excerpt from WSBA Indigent Defense Standards, Revised March 8th 2024: Phased Caseload Limit Reduction: Phase 1: Beginning , within the twelve months following, each full-time felony attorney shall be assigned cases constituting no more than 110 felony case credits and each full- time misdemeanor attorney shall be assigned cases constituting no more than 280 misdemeanor case credits. Phase 2: Beginning July 2, 2026, within the twelve months following, each full-time felony attorney shall be assigned cases constituting no more than 90 felony case credits and each full-time misdemeanor attorney shall be assigned cases constituting no more than 225 misdemeanor case credits. Phase 3: Beginning July 2, 2027, and for any twelve-month period following, each full-time felony attorney shall be assigned cases constituting no more than 47 felony case credits and each full-time misdemeanor attorney shall be assigned cases constituting no more than 120 misdemeanor case credits. Excerpt from Washington State Supreme Court Interim Order, June 2025: Effective January 1, 2026, the caseload standard for each full-time appointed felony attorney for any 12 month period shall be 47 felony case credits; and for each full- time appointed misdemeanor attorney for any 12 month period shall be 120 misdemeanor case credits; and for each full-time appointed attorney for a respondent in civil commitment proceedings for any 12 month period shall be 250 commitment case credits. Implementation of these caseload standards must be accomplished as soon as reasonably possible. Implementation may, however, be accomplished in a phased approach with an annual reduction of at least 10% of the difference between the current standard and the new standard (as measured on January 1, 2026), until the new standard has been met. Full compliance must occur no later than ten years from January 1, 2026. Support Staff Ratios per WSBA Indigent Defense Standards WSBA Indigent Defense Standards: Support Staff Ratios Standard Staff-to-Attorneys Ratio 4.B Mitigation Specialist/Social Worker 1:3 6.B Investigators 1:3 7.C Legal Assistants 1:4 10 Supervisor Attorney 1:10 30  Return to Agenda • 4.B Mitigation Specialists, Social Workers: In public defense agencies, by July 3, 2028, a minimum of one full-time mitigation specialist or social worker shall be provided for every three full-time attorneys. Public defense agencies shall make meaningful progress towards this ratio prior to July 3, 2028. • 6.B. Investigation for Public Defense Agencies: In public defense agencies, by July 3, 2028, a minimum of one full-time investigator shall be employed for every three full-time trial court level (adult and/or juvenile) attorneys. Public defense agencies shall make meaningful progress towards this ratio prior to July 3, 2028. • 7.C. Necessary Legal Assistants/Paralegals Ratio: In public defense agencies, by July 3, 2028, a minimum of one full-time legal assistant or paralegal shall be employed for every four full-time attorneys. Public defense agencies shall make meaningful progress towards this ratio prior to July 3, 2028. • Standard Ten, Supervision: In public defense agencies and contracted private law firms, a minimum of one full-time supervisor should be employed for every ten full-time public defense attorneys or one half-time supervisor for every five public defense attorneys. 31  Return to Agenda ADDENDUM TO CONTRACT FOR PROFESSIONAL SERVICES PUBLIC DEFENSE SERVICES – PRIMARY WHEREAS, the City of Lakewood ("City") and Pacific Point Defense (formerly known as Horwath Law) PLLC ("Contractor") are parties to a Professional Services Agreement for Public Defense Services (the “Contract”); WHEREAS, the term of the Contract is January 1, 2021 through December 31, 2025; WHEREAS, Section 12.1 of the underlying Agreement provides that the Contract may be modified or amended in a writing signed by the authorized representative of each Party, NOW THEREFORE, in consideration of the promises set forth herein and the mutual benefits to be derived, the Contractor and the City agree to increase compensation for services for the remaining term of the contract. The underlying Contract between the Parties is amended, but only in the following respects: 1. Exhibit B amended. The Parties agree that the attached Exhibit B, incorporated by this reference as fully as if herein set forth, shall be substituted into the underlying Contract between the Parties, and shall control compensation until the expiration of the term of the Contract or as amended in the future. This amendment shall be effective when executed by the duly authorized representatives of the Parties. 2. Section 2 Term amended. The Parties agree that the new contract termination date is now December 31st, 2026. This extends the current term by one year. 3. Underlying Agreement. In all other respects, the underlying Agreement between the Parties shall remain in full force and effect. IN WITNESS, the Parties hereto have caused this Addendum to be executed the day and year first above written. CITY OF LAKEWOOD CONTRACTOR Tho Kraus, City Manager Angela Horwath Pacific Point Defense PLLC ATTEST: Briana Schumacher, City Clerk APPROVED AS TO FORM: Drew T. Pollom, Attorney 32  Return to Agenda Exhibit B 1.1 Base Compensation. Effective January 1, 2025, the City shall pay to the Contractor for services rendered under this Contract the annual sum of eight hundred ninety thousand five hundred fifty two dollars ($890,528), paid at a rate of seventy-four thousand two hundred eleven dollars ($74,211) per month, or at an agreed upon pro-rated monthly rate, for the first one thousand and seven hundred forty (1,740) cases assigned in a twelve-month period. If over 1,740 cases are assigned to the Contractor in a twelve-month period, the contractor will charge the amount of three hundred ninety-five dollars ($395) per case for every case over 1,740. Up to 1740 cases or case credits: Base Compensation Year Annual Cost Cost Per Case over 1740 2025 $890,528 $395 2026 $1,181,000 $400 1.2 Case Counts. Based upon case counts maintained by the Contractor and reviewed by the City, current estimates for annual case counts for all indigent cases filed by the City is approximately one thousand eight hundred (1,740) cases per year. The terms "case" and "credit" shall be defined in accordance with the Washington State Supreme Court rule and Washington Office of Public Defense guidelines. The City's compliance is measured by an unweighted case count. Cases shall be counted at .22 of a case/hour for time dedicated as the attorney of the day. Per the agreement of the parties, public defender agrees to count cases as follows: • Each in-custody first appearance calendar as well as the out of custody arraignment calendar shall count as 1 case credit • Representation of indigent defendants directly assigned and placed on mainstream calendars shall count per the indigent standards by assignment; and • Each therapeutic court calendar shall count as 1 case credit. • Additional time spent in meetings, trainings, and any other events connected to Lakewood’s Veterans court or Community Court may be counted at .22 of a case/hour. • Additionally, probation violations are counted as one case credit. However, when the probation violation is only the alleged commission of a new criminal offense, and that violation is tracked with the corresponding new offense and the probation violation does not per se trigger additional work, then both the probation violation and the criminal case may be counted as one case. As provided in the Standards, case counts may be revised upwards based upon a variety of factors. Upon the Contractor's request, the City shall review any particular case with the Contractor to determine whether greater weighting should be assigned, and upward revisions shall not be unreasonably refused. The annual caseload shall be reviewed on a quarterly basis. The compensation amount represents the resources necessary to provide public defense services 33