City Council

LAKEWOOD CITY COUNCIL STUDY SESSION AGENDA Monday, August 11, 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 Surface Water Management Fee Code Amendments. – (Memorandum) (26) 3. Review of Ordinance updating the Business License Model Threshold. – (Memorandum) (32) 4. Review of City Council Meeting Schedule. – (Memorandum) ITEMS TENTATIVELY SCHEDULED FOR AUGUST 18, 2025 CITY COUNCIL MEETING: 1. Recognition of the Lakewood Police Department Citizens Academy Graduates. 2. Authorizing the execution of an agreement with Clover Park School District for School Resource Officers. – (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- August 11, 2025 3. Authorizing the execution of allocation agreements governing the allocation of funds paid by certain opioid manufactures. – (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. Adopting amendments to Title 18A of the Lakewood Municipal Code related to the 2025 Annual Development Regulations. – (Ordinance – Regular Agenda) 6. Updating the Business License Model Threshold for out-of- city businesses). – (Ordinance – Regular Agenda) 7. Joint Public Safety Advisory Committee meeting. (Item for Discussion – Regular Agenda) 8. Municipal Court Update. – (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: August 11, 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, Visit Tacoma – Pierce County *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 - Visit Tacoma-Pierce County 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 TO: City Council FROM: Jeff Rimack, Planning & Public Works (PPW) Director Angie Silva, PPW Assistant Director THROUGH: Tho Kraus, Interim City Manager DATE: August 11, 2025 SUBJECT: DRAFT SURFACE WATER MANAGEMENT FEE CODE AMENDMENTS ATTACHMENTS: Draft Ordinance & Exhibit A Summary The proposed amendments to Chapter 3.38 of the Lakewood Municipal Code (LMC) are administrative and housekeeping in nature. They intend to align the code with current practices and remove outdated provisions. No substantive policy changes are being introduced. The existing surface water management fee structure includes a 2.5% annual inflationary increase, and a summary rate table concluding in 2024. For 2025, consistent with current code, fees were increased by 2.5% for 2025. The proposed amendments remove outdated provisions while also formalizing a requirement for a comprehensive rate study every six years. Key revisions include: • Fee Update: Updates fees to reflect current 2025 surface water utility rates, removes outdated fee table and retains current 2.5% annual inflationary adjustment for 2026 and subsequent years. • Use of Funds: Minor organizational changes and inclusion of flood control migration (e.g. flood hazard areas) as allowed by state law. • Rate Study: Clarifies that a comprehensive rate study should be evaluated at least every six years to evaluate the adequacy and equity of stormwater service charges. • Housekeeping: Removes language related to the nonprofit exemption, which was previously phased out and expired in 2023. This language is no longer applicable or enforceable. Background In Washington State, local governments assess stormwater utility fees to support the management, maintenance, capital improvements, public engagement, and regulatory oversight of surface water systems. These fees help comply with the federal Clean Water Act and the National Pollutant Discharge Elimination System (NPDES) Municipal Stormwater Permit program administered by the Washington 10 1  Return to Agenda State Department of Ecology. 1 As a Phase II NPDES permittee, the City of Lakewood is required to implement a comprehensive stormwater management program in accordance with Ecology’s permit conditions. In Lakewood, stormwater fees are primarily governed by: • LMC Chapter 12.11 – Stormwater Management • LMC Chapter 3.38 – Surface Water Management Fees Together, these chapters establish the framework for: • Maintaining and improving stormwater infrastructure • Complying with state and federal permit requirements • Reducing flooding and erosion risks • Enhancing water quality in local streams and lakes • Funding public education, outreach, inspection, and enforcement efforts Fee Structure Chapter 3.38 LMC outlines the surface water management fees assessed on developed properties within the City. Key components include: • Billing Method: Fees are included in the annual Pierce County property tax statement. • Fee Methodology: Charges are based on impervious surface area, calculated using an equivalent service unit methodology. • Rate Schedule: Fees were last amended in 2019, establishing a 2.5% annual inflationary increase. A table is included in the current code which concluded in 2024. • Exemptions: Specific property types may be exempt from fees, as identified in the LMC (e.g., undeveloped parcels, low-income senior residents, as well as land with tidelands, etc). Eligible Use of Funds Revenue generated from the surface water management fees may be used for a range of stormwater-related activities, including: • Operation and maintenance of public stormwater infrastructure • Flood control and drainage improvements • Street sweeping and catch basin cleaning • Public education and outreach programs (per NPDES requirements) • Capital projects that build new or improve stormwater treatment systems • Regulatory compliance and water quality monitoring • Detection and enforcement of illicit discharges Next Steps On September 2, 2025, a public hearing on the draft ordinance will be scheduled. Tentatively, the Council is scheduled to take possible action on the proposed ordinance on September 15, 2025. 1 RCW 35.67 11 2  Return to Agenda ORDINANCE NO. 835 AN ORDINANCE of the City Council of the City of Lakewood, Washington, amending chapter 3.38 of the Lakewood Municipal Code, relative to Surface Water Management. WHEREAS, in Washington State cities assess stormwater utility fees to support the management, maintenance, capital improvement, public engagement and regulatory over of surface water systems in accordance with the federal Clean Water Act and the National Pollutant Discharge Elimination System (NPDES) Municipal Stormwater Permit program through the Washington State Department of Ecology; and WHEREAS, in 1996 the City of Lakewood created a Storm Drainage and Surface Water Management Program as required by state law; and WHEREAS, storm drainage and surface water management are essential government functions designed to reduce property damage, protect water quality and quantity, and ensure public safety; and WHEREAS, Chapter 3.38 of the Lakewood Municipal Code (LMC) was last amended through Ordinance No. 687; and WHEREAS, the proposed amendments reflect necessary administrative updates to annual fee assessments beyond 2024. NOW, THEREFORE, the City Council of the City of Lakewood do ordain as follows: Section 1. Adoption of amendments to Chapter 3.38 LMC attached hereto in Exhibit A. Section 2. Corrections. The City Clerk and the codifiers of this Ordinance are authorized to make necessary clerical corrections to this Ordinance including, but not limited to, the correction of scrivener's/clerical errors, references, ordinance numbering, section or subsection numbers and any references thereto. Section 3. Severability. If any portion of this Ordinance or its application to any person or circumstances is held invalid, the remainder of the Page 1 12 3  Return to Agenda Ordinance or the application of the provision to other persons or circumstances shall not be affected. Section 4. Effective Date. That this Ordinance shall be in full force and effect thirty (30) days after publication of the Ordinance. ADOPTED by the City Council this ____ day of August, 2025. CITY OF LAKEWOOD Attest: ____________________________________ Jason Whalen, Mayor _______________________________ Briana Schumacher, City Clerk Approved as to Form: _______________________________ Heidi Ann Wachter, City Attorney Page 2 13 4  Return to Agenda Chapter 3.38 LMC, Surface Water Management Page 1 of 12 Exhibit A Chapter 3.38 SURFACE WATER MANAGEMENT Sections: 3.38.010 Purpose. 3.38.020 Creation and authority. 3.38.030 Definitions. 3.38.040 Applicability and exemptionsPolicy for service charges. 3.38.050 Method of calculating service charges. 3.38.060 Deposit of funds. 3.38.070 Authorization for administrative procedures. 3.38.080 Lien for delinquent charges and foreclosures. 3.38.090 Overpayment refund requests. 3.38.100 Administrative refunds or adjustments. 3.38.110 Amount of refund limited. 3.38.120 Appeals. 3.38.010 Purpose. The purpose of this chapter is to create a funding methodology which provides resources to plan, manage, design, construct, maintain, revise, and upgrade the storm drainage and surface water runoff systems within the corporate limits of the City of Lakewood. This authority is invoked to: • minimize property damage, • promote and protect the public health, safety and welfare, • minimize water quality degradation by preventing siltation, contamination and erosion of the City’s waterways, • protect aquifers, • ensure the safety of City streets and rights-of-way, The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. 14 5  Return to Agenda Chapter 3.38 LMC, Surface Water Management Page 2 of 12 • assure compliance with federal and state storm drainage, surface water management, and water quality regulations and legislation, • mitigate impacts of flooding, • increase educational and recreational opportunities, • encourage the preservation of natural drainage systems, and • foster other beneficial public uses. [Ord. 687 § 1, 2018; Ord. 47 § 1, 1996.] 3.38.020 Creation and authority. A. There was created in 1996 a storm drainage and surface water management program for the City of Lakewood. Said program became a utility on January 1, 2002. Said storm drainage and surface water management utility is administered by the City Manager or designee. B. The City elects to exercise all lawful powers necessary and appropriate for the construction, acquisition, and condemnation of property rights, maintenance, management, operations and regulation of storm drainage and surface water runoff systems including, without limitation, all lawful powers to fix, alter, regulate, and control the charges and conditions for the use thereof. [Ord. 687 § 1, 2018; Ord. 289 § 2, 2002; Ord. 47 § 2, 1996.] 3.38.030 Definitions. For purposes of this chapter, the words or phrases below shall have the following meanings: “City” shall mean the City of Lakewood, Washington, or as indicated by the context, may mean the appropriate department, official or employee, or agent representing the City in the discharge of his or her duties. For purposes of this chapter, “City” shall be construed to also include those areas joining the City’s utility by execution of an interlocal agreement for drainage services within the City. “Detention” shall mean the short-term storage of storm drainage runoff that has been artificially collected and then released at a predetermined rate. “Duplex” shall mean one two-family dwelling, either wholly or partially located on a parcel or contiguous parcels, consisting of a building containing not more than two complete living units, The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. 15 6  Return to Agenda Chapter 3.38 LMC, Surface Water Management Page 3 of 12 designated and/or used to house not more than two families living independently of each other and including all necessary household functions of each such family. “Duplex condo” shall mean one complete condominium living unit with its own tax parcel number connected to another complete condominium living unit. “Duplex condo equivalent” shall mean 1,703 square feet of impervious area. “Duplex equivalent” shall mean 3,406 square feet of impervious area. “Engineer” shall mean a professional civil engineer, currently licensed by the state of Washington, retained by and acting on behalf of the parcel owner. “Gravel” shall mean all graveled surfaces available for use as roads, driveways, or other access ways for vehicular traffic, parking, production, storage, staging, and holding areas. (Gravel surface area shall be considered 75 percent impervious.) “Impervious area” shall mean the horizontally projected surface area of all nonvertical surfaces of all buildings, mobile homes, or other structures, and the surface areas of all asphalt, concrete, gravel, oil mat, bituminous or other finished surfaces not covered by structures. “Master plan” shall mean the storm drainage and surface water management plan adopted by City ordinance for managing storm drainage and surface water runoff facilities and features within the City. “Mobile home equivalent” shall mean 1,457 square feet of impervious area. “Multifamily” shall mean a dwelling, either wholly or a building containing more than two complete living units, designated and/or used to house more than two families living independently of each other and including all necessary household functions of each family. “Owner or owner of record” shall mean the holder of title by recorded deed or the purchaser under a recorded real estate contract. “Parcel” shall mean a state, county, or City public highway, or the smallest unit or plot of land separately segregated for tax purposes. “Residential” shall mean a parcel or contiguous parcels with one single-family home or mobile home, designed and/or used to house a single family, either wholly or partially located on it or them. The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. 16 7  Return to Agenda Chapter 3.38 LMC, Surface Water Management Page 4 of 12 “Residential equivalent” shall mean 2,640 feet of impervious area. “Retention” shall mean the long-term storage of ground water by means of percolation. “Service charge” means the charge levied on parcels in the City. “System” shall mean the entire system of storm drainage and surface water runoff facilities owned by the City or over which the City has right of use and responsibility for the movement and control of storm drainage and surface water runoff, including both naturally occurring and manmade facilities. “Urban service area” shall mean the drainage basins located in the City served by the storm drainage and surface water management utility as identified in the City’s adopted storm drainage and surface water management plan. “Vacant/undeveloped” shall mean a parcel of land that has no impervious area. [Ord. 687 § 1, 2018; Ord. 289 § 3, 2002; Ord. 47 § 3, 1996.] 3.38.040 Applicability and exemptionsPolicy for service charges. The City shall apply a rate structure as a utility service charge to all parcels within the City as authorized by LMC 3.38.050 except those explicably exempted in subsections A and B. A. All parcels are subject to a service charge except the following exempt parcels: 1. All parcels consisting of mineral rights only. 2. All parcels consisting entirely of tidelands, rivers, lakes, creeks and/or streams. 3. All vacant/undeveloped parcels. 4. All parcels that are (a) used for church, community center, community hall, grange or community service-oriented purposes, and (b) owned by an organization with nonprofit public benefit status as defined by RCW 24.03.490. A service charge for these parcels will be phased in over a five-year period beginning in 2019, with the exempt status phased out in 2023. The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. 17 8  Return to Agenda Chapter 3.38 LMC, Surface Water Management Page 5 of 12 B. Low-income senior citizens and disabled persons receiving relief under RCW 84.36.381 shall receive the following partial exemption from surface water service charges and surcharge, as applicable: 1. All parcels for which a person qualifies for an exemption under RCW 84.36.381(5)(a) shall be exempt from 40 percent of surface water utility fees and surcharge. 2. All parcels for which a person qualifies for an exemption under RCW 84.36.381(5)(b)(i) shall be exempt from 60 percent of surface water utility fees and surcharge. 3. All parcels for which a person qualifies for an exemption under RCW 84.36.381(5)(b)(ii) shall be exempt from 80 percent of surface water utility fees and surcharge. [Ord. 687 § 1, 2018; Ord. 411 § 1, 2006; Ord. 333 § 3 (Sunset clause to revert back to Ord. 321), 2003; Ord. 333 § 1, 2003; Ord. 321 § 1, 2003; Ord. 289 § 4, 2002; Ord. 186 § 1, 1998; Ord. 47 § 4, 1996.] 3.38.050 Method of calculating service charges. Commencing on January 1, 2019, the The annual service charge schedule for storm drainage and surface water management is hereby set and established for the areas of the City as set forth herein. A. Annual service charges are as follows: 1. Residential: $134.64116.10. 2. Duplex: $175.9651.73. 3. Duplex condo: $84.0872.50. 4. All mobile homes other than subsection (A)(1) of this section: $7061.8005 per vacant or occupied mobile home site (mobile home equivalent) plus $0.053964653 per square foot of impervious area in addition to mobile home site. 5. All other parcels: $0.053964653 per square foot of impervious area but in no case shall the minimum service charge be less than the residential equivalent rate. Beginning of each calander year on January 1st, in 2020 annual service charges shall increase two and one-half percent each year to account for inflation. Annual service charges should be The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. 18 9  Return to Agenda Chapter 3.38 LMC, Surface Water Management Page 6 of 12 __________ reassessed through a rate study every six (6) years. Rates listed for each subsequent year shall be in effect on January 1st of the year listed unless and until amended by City Council action. Storm Water Rates 2019 – 2024 Year 2019 2020 2021 2022 2023 2024 Increase 50% 2.5% 2.5% 2.5% 2.5% 2.5% Residential $116.10 $119.00 $121.98 $125.03 $128.15 $131.36 Duplex $151.73 $155.52 $159.41 $163.40 $167.48 $171.67 Duplex $72.50 $74.31 $76.17 $78.07 $80.03 $82.03 Condo Mobile $61.05 $62.58 $64.14 $65.74 $67.39 $69.07 Homes per Unit Mobile $0.04653 $0.04769 $0.04889 $0.05011 $0.05136 $0.05264 Homes per Square Foot of Impervious Area All Other $0.04653 $0.04769 $0.04889 $0.05011 $0.05136 $0.05264 Parcels per Square Foot of The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. 19 10  Return to Agenda Chapter 3.38 LMC, Surface Water Management Page 7 of 12 Storm Water Rates 2019 – 2024 Formatted: Left Impervious Area B. The annual service charge shall be calculated based on impervious area and parcel status as of January 1st each year. The annual service charge shall be due the City on or before April 30th of each year and shall be paid together with payment of real property tax upon the parcel, if any, and shall be delinquent thereafter; provided, that if real property tax upon the parcel payable in that year exceeds $30.00, and one-half of the tax, together with one-half of the annual service charge provided by this section, is paid on or before April 30th of such year, the remaining one-half of the annual service charge shall be due and payable on October 30th, next following, or at the time of payment of the remaining tax on the parcel, whichever is earlier, and shall be delinquent after that date. The service charge shall be incorporated on the Pierce County real property tax statement. C. Annual Service Charge Credit. 1. Credit will apply to all categories listed in subsection A of this section. 2. Credit Application Submittal Requirements. To qualify for a credit, the owner of record shall provide the City: a. A “hold harmless” statement on a form provided by the City that indemnifies the City from any loss incurred arising from the construction and maintenance and operation of the owner’s drainage facilities for both water quantity and quality runoff from the owner’s property. This statement shall be signed by the owner and will be held in record along with the application, certification, and recertification submissions. The owner of record shall provide the City a notarized copy of the agreement. b. Each owner of record must enter into an agreement with the City that allows the City to enter onto the owner’s parcel to inspect the drainage facility and verify all information submitted by the owner and his/her engineer. The agreement form will be provided by the City. This statement shall be signed by the owner and will be held in record along with the application, certification, and recertification submissions. The owner of record shall provide the City a notarized copy of the agreement. The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. 20 11  Return to Agenda Chapter 3.38 LMC, Surface Water Management Page 8 of 12 c. “As constructed” plans stamped by the owner’s engineer should be accompanied by engineering calculations in accordance with design criteria acceptable to the City. Both quantity and quality BMPs shall be shown. Examples of acceptable quality BMPs include bioswales, constructed wetlands, and approved filter vaults. d. An operation and maintenance manual prepared and stamped by the owner’s engineer for the owner to follow in maintaining the storm drainage system. e. A certified statement that all maintenance as outlined in the operation and maintenance manual has been completed. f. A copy of any maintenance contracts and contractors’ certified statement that all maintenance as outlined in the operation and maintenance manual has been completed. 3. Resubmittal Requirements. Biennially, each owner of record shall provide a certified statement by October 1st of the year preceding the year for which the owner of record is requesting credit on a form provided by the City verifying that all specified maintenance has been performed in accordance with the operation and maintenance manual prepared by the owner’s engineer on the facility for the calendar year the credit is being requested. 4. Credit percentages shall be provided in accordance with the following schedule: a. Single-lot residential, duplex, duplex condo, and single-lot mobile homes: Facility Type Percent Credit Retention 100-year storage 43% 25-year storage 18% Detention 0% b. Residential subdivisions, mobile home parks, multifamily, and all other parcels NOT subsections (A)(1) through (A)(4) of this section: The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. 21 12  Return to Agenda Chapter 3.38 LMC, Surface Water Management Page 9 of 12 Facility Type Percentage Credit Retention 100-year storage 43% 25-year storage 18% Detention 0% Percentage Credit Natural Drainage Course Municipal Drainage System 100-year storage; release rate of 30% 25% 50% of the predevelopment discharge rate for a 2-year storm 25-year storage; 2-year release 15% 13% The maximum credit amount for properties receiving an 85 percent credit prior to the effective date of the ordinance codified in this section will be sequentially reduced to 43 percent over a five-year period beginning in 2019, thus reaching the new maximum allowable credit in 2023. The credit amount for properties currently receiving credits between 11 percent and 84 percent will be similarly reduced by 50 percent over the same time period. The credit amount for properties currently receiving a 10 percent credit will be similarly reduced to zero over the same time period. D. No credit shall be given for a retention/detention facility with less than a 25-year storage. The annual service charge credits will be calculated using the schedule in subsection (C)(4) of this section at the time the credit application was approved. Credits will be recalculated when the certified statement defined in subsection (C)(3) of this section is due. E. It is the intention of the City Council to provide rates that accurately reflect the needs of the surface water and storm drainage management utility, and that rates be set in responsible and appropriate amounts not more than necessary to meet the utility’s needs. Therefore, the City The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. 22 13  Return to Agenda Chapter 3.38 LMC, Surface Water Management Page 10 of 12 Council directs staff to return to the City Council proposals, reports and recommendations regarding the appropriate rate levels, including information to determine system needs, and to consider whether the rate should be continued, reduced or otherwise amended, which proposals, reports and recommendations shall be provided to the City Council not later than October 31st of each even-numbered calendar year. [Ord. 687 § 1, 2018; Ord. 393 § 1, 2005; Ord. 333 § 3 (Sunset clause to revert back to Ord. 321), 2003; Ord. 333 § 2, 2003; Ord. 321 § 2, 2003; Ord. 289 § 5, 2002; Ord. 244 § 1, 2000; Ord. 186 § 2, 1998; Ord. 47 § 5, 1996.] 3.38.060 Deposit of funds. All storm drainage and surface water management utility funds from service charges, grant funds, or any other revenue received shall be deposited in the surface water management fund of the City, identified as fund 401, as a special revenue fund. All revenue in the surface water management fund shall be deposited in interest-bearing or income-earning accounts. [Ord. 687 § 1, 2018; Ord. 289 § 7, 2002; Ord. 47 § 6, 1996.] 3.38.070 Authorization for administrative procedures. The City Manager or designee is hereby authorized and directed to establish all administrative procedures necessary to implement the provisions of this chapter. [Ord. 687 § 1, 2018; Ord. 47 § 7, 1996.] 3.38.080 Lien for delinquent charges and foreclosures. A. The City shall place a lien on any parcel with a delinquent service charge, including interest thereon. Such liens shall be effective and shall be enforced and foreclosed in the same manner as provided for sewerage liens of cities and towns by RCW 35.67.200 through 35.67.290, except that, alternatively, the service charge lien shall be effective for a total not to exceed one year’s delinquent service charges without the necessity of any writing or recording of the lien with the Pierce County Auditor. The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. 23 14  Return to Agenda Chapter 3.38 LMC, Surface Water Management Page 11 of 12 B. Delinquent service charges shall bear interest provided in RCW 35.67.200 at the rate of eight percent per annum, or such rate as may hereafter be authorized by law, computed on a monthly basis from the date of delinquency until paid. Interest shall be calculated at the rate in effect at the time of payment of the charges regardless of when the charges were first delinquent. [Ord. 687 § 1, 2018; Ord. 47 § 8, 1996.] 3.38.090 Overpayment refund requests. Any person may request the refund of service charge overpayment(s) by doing so in writing to the City Manager or designee. The basis of the request explaining the nature of the overpayment should be clearly stated. The City Manager or designee shall investigate the overpayment to have occurred. The City Manager or designee will use best efforts within 60 days of receipt of the request. The City Manager or designee shall specify in the written decision the basis for authorizing or denying the refund request. No refund may be authorized for overpayment paid or levied more than two years prior to the date the written request is received. [Ord. 687 § 1, 2018; Ord. 47 § 9, 1996.] 3.38.100 Administrative refunds or adjustments. The City Manager or designee may authorize in writing a refund, credit, or adjustment of any amounts when he/she determines that an error, miscalculation, or mistake has occurred which affects any ratepayer(s). The nature of the error, miscalculation, or mistake should be documented together with the steps taken to prevent future occurrences. No refunds, credits or service charge adjustments may be authorized pursuant to this section unless brought to the attention of the City Manager or designee within two years of the occurrence of the error, miscalculation or mistake. [Ord. 687 § 1, 2018; Ord. 47 § 10, 1996.] 3.38.110 Amount of refund limited. In any instance where a refund or credit is authorized by the City Manager or designee, the amount shall not include any interest. [Ord. 687 § 1, 2018; Ord. 47 § 11, 1996.] The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. 24 15  Return to Agenda Chapter 3.38 LMC, Surface Water Management Page 12 of 12 3.38.120 Appeals. Any decision of the City Manager or designee made pursuant to this chapter may be appealed to the City of Lakewood Hearing Examiner upon payment of the fees and pursuant to Chapter 1.36 LMC. [Ord. 687 § 1, 2018; Ord. 585 § 11, 2014; Ord. 47 § 12, 1996.] The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. The Lakewood Municipal Code is current through Ordinance 824, passed December 9, 2024. 25 16  Return to Agenda TO: Mayor and City Council FROM: Jeff Rimack, Director, Planning and Public Works Department, and Becky Newton, Economic Development Manager THROUGH: Tho Kraus, Interim City Manager DATE: August 11, 2025 SUBJECT: BUSINESS LICENSE MODEL THRESHOLD The state of Washington increased the business license model threshold for out-of-city businesses and is set to take effect on January 1, 2026. The changes include a one-time increase to a higher threshold of $4,000 per year for out- of-city businesses. It is recommended that City Council adopt an Ordinance reflecting this change by August 26, 2025. Attachments: RCW 35.90.080 Adoption of model ordnance handout Draft Ordinance No. 834 26  Return to Agenda ORDINANCE NO. 834 AN ORDINANCE of the City Council of the City of Lakewood, Washington, updating the Business License Model Threshold for out-of-city businesses. WHEREAS, the state of Washington adopted a one-time change to increase to a higher threshold of $4,000 per year for out-of-city businesses, effective January 1, 2026; and WHEREAS, the threshold will have an automatic periodic increase every four years based on cumulative inflation; and WHEREAS, the state’s deadline to adopt the threshold for Business Licensing Service cities is October 1, 2025 (to provide the required 75- days’notice of the change before they take effect) due to system upgrades; and WHEREAS, the state Business License Service team is encouraging cities to complete the task as soon as possible-by August 26 if feasible. NOW, THEREFORE, the City Council of the City of Lakewood do ordain as follows: Section 1. Lakewood Municipal Code Chapter 5.02.050 entitled Exemptions and waivers is hereby amended to read as follows. A. Notwithstanding the requirement of LMC 5.02.020, the following shall be exempt from the requirement to apply for and obtain a business license. Permits, however, may be required if otherwise required by law. 1. Sales, delivery, or peddling of any fruits, vegetables, berries, eggs, or any farm produce or edibles by the farmer, gardener, or other person who raised, gathered, produced, or manufactured them; provided, that this exemption shall not apply to any person selling, delivering, or peddling any dairy product, meat, poultry, eel, fish, mollusk, or shellfish. 2. Any individual in possession of a valid direct retail endorsement, as established in RCW 77.65.510 as currently enacted or as hereafter amended or recodified from time to time, who sells, delivers, or peddles any legally harvested retail-eligible species, as that term is defined in RCW 77.08.010 as currently enacted or as hereafter amended or recodified from time to time, that is caught, harvested, or collected under rule of the Department of Fish and 27  Return to Agenda Wildlife by such a person at a temporary food service establishment, as that term is defined in RCW 69.06.045 as currently enacted or as hereafter amended or recodified from time to time; provided, that such establishment shall not be exempt from inspection to verify that the person is in compliance with State Board of Health and local rules for food service operations. 3. Small or part-time businesses, professions, or trades performed by minors wherein the annual gross income is less than $2,000 in the nature of babysitting, delivery of newspapers, or sales in the nature of a residential-based “lemonade stand,” or the like; provided, that the activity is not one for which a license would otherwise be required by subsections (1) through (3) of the definition of “temporary business” in LMC 5.02.010. 4. Stands used to sell or distribute flowers, fruit, vegetables, produce or plants grown on the property where the stand is located. 5. Vendors at City-sponsored events such as farmers markets, or similar functions. Such events can be organized and sponsored by nonprofit organizations or for-profit organizations and are open to all participants on an equal basis. City-sponsored events shall have the purpose of promoting or benefiting the City and its residents and/or sponsoring organizations. 6. Residential sales such as garage or yard sales of a typical size and duration as well as want-ad, online marketplace or similar sales of an isolated and infrequent nature. 7. Any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the City is equal to or less than $2,000 for businesses located within the city limits and $4,000 for businesses who does not maintain a place of business within the City shall be exempt from the general business license requirements in this chapter. The exemption does not apply to regulatory license requirements or activities that require a specialized permit. B. Any activity, business or function otherwise requiring a license under this title may receive a waiver of any such requirement where the City Manager determines that the activity, business or function otherwise subject to such license is civic rather than commercial in nature, as with civic, community or school events. [Ord. 694 § 1 (Exh. A), 2018; Ord. 610 § 8, 2015; Ord. 548 § 1, 2012; Ord. 300 § 2, 2003; Ord. 79 §1, 1996; Ord. 24 § 5, 1995.] 28  Return to Agenda Section 2. Corrections. The City Clerk and the codifiers of this Ordinance are authorized to make necessary clerical corrections to this Ordinance including, but not limited to, the correction of scrivener's/clerical errors, references, ordinance numbering, section or subsection numbers and any references thereto. Section 3. 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 4. Effective Date. Effective Date. That this Ordinance shall be in full force and effect thirty (30) days after publication of the Ordinance Summary. ADOPTED by the City Council this 18th day of August, 2025. CITY OF LAKEWOOD Attest: ____________________________________ Jason Whalen, Mayor _______________________________ Briana Schumacher, City Clerk Approved as to Form: _______________________________ Heidi Ann Wachter, City Attorney 29  Return to Agenda City Business License Model Ordinance 1. Outline of Changes to Business License Model Ordinance • Effective date to January 1, 2026. • One-time increase to a higher threshold to $4,000 for out-of-city businesses. • Combined with an automatic periodic increase four years later based on cumulative inflation. The rate of inflation would be calculated as zero in any year in which inflation was negative and capped at 5% per year or 20% over four years if inflation exceeded those amounts. • The rates of inflation would be calculated using the Consumer Price Index-U (CPI-U) Western for June of each year compared to the previous year for the previous four years. • To make the threshold easier to administer, the cumulative inflation amount would be rounded to the nearest $100. • Cities that partner with the state’s Business License Service would need to update their ordinance in time to provide 75-days' notice to the Department of Revenue of the change. Cities that partner with File local would need to notify them of an expected system change by August. • Cities would retain the local option of requiring a no-fee registration for out-of-city businesses below the threshold and the local option of imposing a higher threshold than the model minimum threshold. 2. Changes to Model Threshold The 2018 model is amended to include the threshold change effective January 1, 2026. Model business license threshold options: (cities would adopt one of the options effective January 1, 2026) 1. Threshold Exemption Option: To the extent set forth in this section, the following persons and businesses shall be exempt from the registration, license and/or license fee requirements as outlined in this chapter: (1) Any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the city is equal to or less than $2,000 [or higher threshold as determined by city] and who does not maintain a place of business within the city shall be exempt from the general business license requirements in this chapter. The exemption does not apply to regulatory license requirements or activities that require a specialized permit. Beginning January 1, 2026, the threshold amount is $4000 [or higher threshold as determined by city]. The threshold amount will be adjusted every forty-eight months on January 1, by an amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each 12-month period ending on June 30 as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (forty-eight month) CPI increase using each 12-month period ending on June 30 of each prior year, and rounded to the nearest $100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) percent increase will be used in computing the annual basis and if any of the annual CPI decreased during the forty-eight-month period, a zero (0) percent increase will be used in computing the annual basis. 2. Threshold with Fee-free License/Registration-only Option: For purposes of the license by this chapter, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the city is equal to or less than $2,000 [or higher threshold as determined by city] and who does not maintain a place of business within the city, shall submit a business license registration to the Director or designee. The threshold does not apply to regulatory license requirements or activities that require a specialized permit. 30  Return to Agenda Beginning January 1, 2026, the threshold amount is $4000 [or higher threshold as determined by city]. The threshold amount will be adjusted every forty-eight months on January 1, by an amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each 12-month period ending on June 30 as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (forty-eight month) CPI increase using each 12-month period ending on June 30 of each prior year, and rounded to the nearest $100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) percent increase will be used in computing the annual basis and if any of the annual CPI decreased during the forty-eight-month period, a zero (0) percent increase will be used in computing the annual basis. [Note: City would list this fee-free license in its business license rates section as $0 or no fee.] 3. Background Information • Model threshold was required by 2017 legislation (RCW 35.90.080: Adoption of model ordinance) to address out-of-city licensing/delivery concerns. • 2018 final recommendation was $2000 for out-of-city businesses, with option to require no-fee registration only requirement below threshold. • Changes must be adopted by cities with same effective date (RCW 35.90.080(1)(c)). • Model cannot be updated more frequently than every 4 years. 31  Return to Agenda TO: Mayor and City Council FROM: Heidi Ann Wachter, City Attorney THROUGH: Tho Kraus, Interim City Manager DATE: Monday, August 11, 2025 SUBJECT: Review of City Council Meeting Schedule The City Council has reviewed the meeting schedule which has historically been to hold regular meetings on the first and third Monday of each month and study sessions on the second and fourth Monday of each month.i By comparison prevalent practice among cities is to hold two meetings per month, including study sessions. By way of Resolution No. 2025-01, adopted on January 6, 2025 which the number of monthly meetings was reduced from four to three. The City Council expressed interest in returning to the meeting schedule after working under the new schedule for at least six months which is the purpose of this review. During the review period, one additional meeting was scheduled to interview and select a City Manager and no additional meetings were added accommodate the volume of items and/or legal timelines. During the review period of January 1 through June 30, 2025 a total of 69 public comments were received over 12 meetings which is an average of 6 public comments per meeting. This compares identically with 69 public comments over 12 meetings during January 1, 2024 through June 20, 2024. The new schedule is not yielding additional meetings while accommodating comparable resident involvement. ii Recommendation: It is recommended that the City Council use a meeting schedule that provides the most efficient and effective forum for serving the legislative needs of the city. The current schedule of three meetings per month is meeting that demand. It is possible that the legislative responsibilities of the City Council can be accomplished in fewer meetings. i The City Council previously received a discussed this topic at the City Council’s December 9, 2025 Study Session and the City Council’s August 19, 2024 regular meeting. ii It is worth noting that as the City Council decreased the number of formal City Council meetings resident outreach increased with the addition of “Desserts in the Driveway” and adding two neighborhood associations for a total of six. 32