Regular City Council

Agenda City of Ocean Shores Regular City Council Meeting Ocean Shores Convention Monday Center January 13, 2020 120 W Chance A La Mer 6:00 PM Ocean Shores, Washington Page Call to Order Roll Call Pledge of Allegiance Approval of Meeting Agenda Ceremonies and Proclamations 1. Recognition • Jeremy Towery- Lieutenant Promotion. • Brian Schaffer and Kara McDermott- Career Firefighters. • Matt Rightmier- Completing Probation. • Presented by Fire Chief Mike Thuirer Oath of Office 2. Mayor Dingler. Councilmembers Sprigg, Elduen, Martin, Peterson, and Noble. Public Communication to Council - 3 Minutes Announcements 3. Board and Committee Vacancies Five member and two alternate vacancies on the Building Code Board of Appeals, one vacancy on the Planning Commission, and one vacancy on the Library Board. Appointments 4. Mayor Crystal Dingler to reappoint, with Council consensus, Denise Siers and Page 1 of 35 Page Jeni Cate to the Library Board and Dan Bricker to the Planning Commission. • Planning Commission Oath of Office Other Reports Staff Report 5. City Administrator's Report • Presented by City Administrator Scott Andersen Council Liaison Reports & Council Committee Reports Mayor's Report Consent Agenda 5-8 6. Approval of minutes for the Regular City Council Meeting on December 9, 2019. 7. Approval of Claims. Mayor Pro Tempore Election 8. City Council nominate and elect Mayor Pro Tempore. 9. Mayor Pro Tempore Oath of Office Old Council Business New Council Business 9 - 13 10. Ordinance An ordinance of The City of Ocean Shores, Grays Harbor County, Washington; imposing a one-hundred eighty (180) day moratorium with respect to the acceptance or processing of land use, building or permitting applications for any and all new construction associated with homeless shelters, homeless drop- in centers, tiny homes, and similar accommodation to homeless persons in all zones of The City of Ocean Shores. • Presented by City Administrator Scott Andersen • First reading • Public Comment • Council Question and Discussion • Council Action 15 - 28 11. Request A Request for the City Council of the City of Ocean Shores, Washington to approve an Agreement between the City of Ocean Shores and the Coastal Interpretive Center. • Presented by City Administrator Scott Andersen Page 2 of 35 Page • Public Comment • Council Questions and Discussion • Council Action Discussion 12. City Council Retreat • Presented by Mayor Crystal Dingler • Council Questions and Discussion • Tentative Date Selection- February 3, 2020 or February 4, 2020 29 - 35 13. SHB 1406 The intent of the City of Ocean Shores to adopt legislation to authorize a sales and use tax for affordable and supportive housing in accordance with substitute house bill 1406 (chapter 338, laws of 2019), and other matters related thereto. • Presented by: Scott Andersen • Council Questions and Discussion Executive Session 14. Executive Session: RCW 42.30.110 (1) (f) To receive and evaluate complaints or charges brought against a public officer or employee. RCW 42.30.140(4) (b) Planning or adopting collective bargaining agreement strategy or position. • Council Action may follow Executive Session. Future Agenda Item Suggestions - 3 Minutes 15. Future Meeting Topics: • Police Advisory Board 2017.09.25 - Griebel. • Noise Ordinance 2017.11.13 - Griebel. • Habitability and Unfit Buildings 2018.05.14 - Noble. • Low income threshold for Utilities 2018.05.29 - Conniry. • LeMay Yard Waste 2018.11.13 - Conniry. • Littering Laws 2018.11.13 - Noble. • Land Swap 2019.02.11 - Ensley. • Hotel Fire Break & Wetland Delineation 2019.04.22 - Ensley. • Alternative Means of Road Side Weed Control 2019.05.28 - Sprigg • Crosswalks 2019.07.08 - Peterson • SHB 1406 2019.09.23 - Martin • Homeless issues 2019.10.14 - Conniry • Police enforcement on chronic nuisance hotels 2019.10.28-Martin Agenda Review: January 17, 2020 at 9:00 a.m. Page 3 of 35 Page For the Good of the Order - 3 Minutes Adjourn _________________________________________________________ Public Notice: • Persons requiring auxiliary aids or special arrangements in order to participate in meetings should call 360.940.7634 at least two business days prior to the scheduled meeting. • The public is invited to view the full City Council packet on our website at https://oceanshores.civicweb.net/filepro/documents/183. • This institution is an equal opportunity provider and employer. Page 4 of 35  REGULAR CITY COUNCIL MEETING MINUTES December 9, 2019 Call to Order: Mayor Dingler called the Regular City Council Meeting to order at 6:00 p.m., at the Ocean Shores Convention Center. The recorded meeting may be accessed on the City website or viewed on cable Channel 68 Tuesday and Friday at 7:00 p.m. Elected Officials present: Mayor Dingler and Councilmembers Conniry, Sprigg, Griebel, Martin, Ensley, Peterson, and Noble. Elected Officials absent: None City Staff present: City Administrator Scott Andersen, Police Chief Neccie Logan, Finance Director Angela Folkers, Public Works Director Nick Bird, and City Clerk Sara K. Dawson. Others present: None. Roll Call: City Clerk Dawson called roll. Pledge of Allegiance: Councilmember Ensley led the Pledge of Allegiance. Meeting Agenda Recording #00:01:53 – Councilmember Ensley made a motion to Approval: Approve the Agenda as amended to include executive session. Councilmember Peterson seconded the motion. The motion passed with 7 yes votes. Ceremonies and Proclamations: None. Public Communication: Steve Bova commented on roadside spraying and future mayor pro tem. Valentina Golod commented on chemical spraying. Kathy Baker commented on children’s activities at the library. Walter Weed commented on rain charts of 2019. PJ Faria commented on bringing the City together. Betzie Calabro commented on community New Year’s Eve party. Jeanne Finke commented on words of appreciation for Lisa Griebel. Lillian Broadbent commented on thanking the city council and moving forward together. Announcements: Cancellation of the December 23, 2019 Regular Council Meeting. Welcoming members of the Coast Works Innovation Network. Mayor Dingler announced that there are five member and two alternate vacancies on the Building Code Board of Appeals; Two vacancies on the Library Board and one vacancy on the Planning Commission _____________________________________________________________________________ 12.09.2019 Regular Meeting Page 1 of 4 6. Approval of minutes for the Regular City Council Meeting on December ... Page 5 of 35  REGULAR CITY COUNCIL MEETING MINUTES December 9, 2019 Appointments: None. Other Reports: None. Staff Report: City Administrator Scott Andersen presented on the Business/Occupational Tax letters; new city website; upcoming commercial and real estate meeting; Coastal Community Action Program representative coming to a future council meeting; SHB-1406 and homeless moratorium finding of fact. Council Liaison Councilmember Ensley reported signing warrants; attending SW Reports & Council Regional Transportation Planning Organization meeting and Committee upcoming Radio Board meeting. Reports: Councilmember Peterson reported signing warrants and attending agenda setting. Councilmember Conniry passed. Councilmember Noble passed. Councilmember Sprigg passed. Councilmember Griebel reported cancellation of the Parks Board meeting for December. Councilmember Martin reported on Hotel-Motel Tax. Mayor’s Report: Mayor Dingler passed. Consent Agenda: Recording #00:27.30 – Councilmember Ensley made a motion to approve Consent Agenda. Councilmember Conniry seconded the motion. The motion passed with 7 yes votes. The Consent Agenda included: 1. Approval of minutes for the November 25, 2019 Regular City Council Meeting. 2. Approval of Claim Warrants #171580 through #171600 in the amount of $203,482.02 dated December 2019. 3. Approval of Payroll Warrants #705474 through #705485 in the amount of $206,028.07 dated December 2019. 4. Approval of Accounts Payable Warrants #802477 through #802487 in the amount of $267,790.17 dated December 2019. _____________________________________________________________________________ 12.09.2019 Regular Meeting Page 2 of 4 6. Approval of minutes for the Regular City Council Meeting on December ... Page 6 of 35  REGULAR CITY COUNCIL MEETING MINUTES December 9, 2019 Old Council Business Ordinance 1054 An Ordinance of the City Council of The City of Ocean Shores, Budget Washington, amending the 2019-2020 Budget Ordinance No. 1031 and 2019-2020 Budget Amendment Ordinance No. 1041. Amendment: Finance Director Angela Folkers presented the Ordinance. There was no public comment. There were Council questions and discussion regarding, managing the wheel chairs; marketing; requirements for super majority vote on budgets and 2020 budget layout. Recording #00:35:20 – Councilmember Noble made a motion to approve amending the 2019-2020 Budget Ordinance No. 1031 and 2019-2020 Budget Amendment Ordinance No. 1041. Councilmember Ensley seconded the motion. The motion passed with 5 yes votes and 2 no votes by Councilmembers, Conniry, and Sprigg. Request: Albatross Street A request of the City Council of The City of Ocean Shores, Bridge Sidewalk Washington to enter into Maintenance Agreement with WSDOT Rehabilitation: for the Albatross Street Bridge Sidewalk Rehabilitation. Public Works Director Nick Bird presented a request. There was public comment on bridge photographs; dry rot on the bridge; closing the bridges in result of deterioration and the impact on the community. There were Council questions and discussions regarding, the City maintaining the bridge; closing the sidewalks on the bridge; WSDOT contract; who is managing the workflow and if a budget amendment is required for the project. Recording #00:52:42 – Councilmember Noble made a motion to approve the request to enter into a Maintenance Agreement with WSDOT for the Albatross Street Bridge Sidewalk Rehabilitation. Councilmember Ensley seconded the motion. The motion passed with 7 yes votes. Request: E. Chance ala Mer A request of the City Council of The City of Ocean Shores, Bridge Sidewalk Washington to enter into Maintenance Agreement with WSDOT Rehabilitation: for the E Chance ala Mer Bridge Sidewalk Rehabilitation. Public Works Director Nick Bird presented a request. There was no public comment. There were Council questions and discussion regarding, the abundance of traffic on the bridge, how it would change the assessment, and Safe Routes to School grants. Recording #00:58:41– Councilmember Ensley made a motion to _____________________________________________________________________________ 12.09.2019 Regular Meeting Page 3 of 4 6. Approval of minutes for the Regular City Council Meeting on December ... Page 7 of 35  REGULAR CITY COUNCIL MEETING MINUTES December 9, 2019 approve the request to enter into a Maintenance Agreement with WSDOT for the E Chance ala Mer Bridge Sidewalk Rehabilitation. Councilmember Peterson seconded the motion. The motion passed with 7 yes votes. Discussion: There was no Council discussion. Mayor Dingler recessed the Regular City Council Meeting at 7:01 p.m. Mayor Dingler reconvened the Regular City Council Meeting at 7:06 p.m. Executive Mayor Dingler recessed the Regular City Council Meeting at Session: 7:06 p.m. to convene into Executive Session to discuss RCW 42.30.110 (1) (i) litigation or potential litigation to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency and RCW 42.30.110 (1) (f) To receive and evaluate complaints or charges brought against a public officer or employee. The Executive Session was extended for 5 minutes at 7:26 p.m. The Executive Session was extended for 10 minutes at 7:32 p.m. Mayor Dingler adjourned the Executive Session and reconvened the Regular City Council Meeting at 7:44 p.m. Future Agenda Recording #01:01:46- Councilmember Martin made a motion to Items: add Council Retreat and facilitator. Councilmember Noble seconded the motion. The motion passed with 7 yes votes. Mayor Pro Tem Martin assigned Councilmembers Sprigg, Peterson, and Martin to the Agenda Review on Friday January 3, 2020 at 9:00 a.m. For the Good of Councilmembers shared items they felt were for the good of the the Order: order. Adjourn: Mayor Dingler adjourned the Regular City Council meeting at 7:53 p.m. Signed: ________________________________ Crystal L. Dingler, Mayor Attest: ________________________________ Sara K. Dawson, City Clerk _____________________________________________________________________________ 12.09.2019 Regular Meeting Page 4 of 4 6. Approval of minutes for the Regular City Council Meeting on December ... Page 8 of 35  City of Ocean Shores AGENDA BILL ------------------------------------------------------------------------------------------------------------------------------------------ COUNCIL MEETING DATE: January 13, 2020 SUBJECT: An ordinance imposing a one-hundred eighty (180) day emergency moratorium with respect to homeless shelter housing. CATEGORY: CONSENT AGENDA X ORDINANCE STAFF REPORT PUBLIC COMMUNICATION RESOLUTION PROCLAMATION OLD BUSINESS REQUEST STUDY SESSION X NEW BUSINESS CONSULTANT REPORT OTHER ATTACHMENTS: AN ORDINANCE OF THE CITY OF OCEAN SHORES, GRAYS HARBOR COUNTY, WASHINGTON; IMPOSING A ONE-HUNDRED EIGHTY (180) DAY MORATORIUM WITH RESPECT TO THE ACCEPTANCE OR PROCESSING OF LAND USE, BUILDING OR PERMITTING APPLICATIONS FOR ANY AND ALL NEW CONSTRUCTION ASSOCIATED WITH HOMELESS SHELTERS, HOMELESS DROP-IN CENTERS, TINY HOMES, AND SIMILAR ACCOMODATION TO HOMELESS PERSONS IN ALL ZONES OF THE CITY OF OCEAN SHORES. SUMMARY/BACKGROUND: This ordinance places a moratorium on the processing of any and all new land use or building applications or plans, or issuance of permits or licenses, or approvals or licenses, and uses or activities associated with emergency shelters, drop-in centers, tiny homes, and similar uses that provide social services to persons that are homeless in all zones. EXPENDITURE AMOUNT: N/A EXPENDITURE AMOUNT: N/A AMOUNT BUDGETED: N/A BUDGET MODIFICATION REQUIRED: N/A STAFF RECOMMENDATION: Approve MAYOR'S RECOMMENDATION: Approve PRESENTED BY: Scott Andersen, City Administrator & Brent Dille, City Attorney (BELOW TO BE COMPLETED BY CITY CLERK’S OFFICE) COUNCIL ACTION: APPROVED CONTINUED DENIED COUNCIL REQUEST FOR INFORMATION: 11-14-07 updated 10. Ordinance An ordinance of The City of Ocean Shores, Grays Harbor Cou... Page 9 of 35 Page 10 of 35  CITY OF OCEAN SHORES, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF OCEAN SHORES, GRAYS HARBOR COUNTY, WASHINGTON; IMPOSING A ONE-HUNDRED EIGHTY (180) DAY MORATORIUM WITH RESPECT TO THE ACCEPTANCE OR PROCESSING OF LAND USE, BUILDING OR PERMITTING APPLICATIONS FOR ANY AND ALL NEW CONSTRUCTION ASSOCIATED WITH HOMELESS SHELTERS, HOMELESS DROP-IN CENTERS, TINY HOMES, AND SIMILAR ACCOMODATION TO HOMELESS PERSONS IN ALL ZONES OF THE CITY OF OCEAN SHORES. WHEREAS, homelessness is a regional and national issue that extends far beyond the municipal boundaries of the City of Ocean Shores; and WHEREAS, homelessness often creates a burden on small communities with limited resources; and WHEREAS, the City of Ocean Shores presently lacks any form of land use regulation pertaining to shelters, drop-in centers, tiny homes, and similar accommodation to homeless persons; and WHEREAS, the City of Ocean Shores Planning Commission is in the process of identifying suitable zoning guideless for such permitting and construction; and WHEREAS, this moratorium is required to preserve the health, safety, and welfare of the residents of the City of Ocean Shores; and WHEREAS, homelessness can have a negative impact on quality of life on matters pertaining to sanitation, security, theft, littering, drug use, and other negative influences; and Page 1 of 3 Ordinance No. 10. Ordinance An ordinance of The City of Ocean Shores, Grays Harbor Cou... Page 11 of 35  WHEREAS, the City of Ocean Shores is continuing its efforts to work with and coordinate resources with Grays Harbor County and regional social service agencies to address homelessness; and WHEREAS, the City of Ocean Shores needs time to review, research, and analyze land use regulations and permitting processes to best determine the nature and scope of any and all potential regulatory amendments relative to emergency shelters, drop-in centers, tiny homes which provide accommodation to homeless persons; and WHEREAS, RCW 35A.12.130 states that “an ordinance passed by a majority plus one of the whole membership of the council, designated therein as a public emergency ordinance necessary for the protection of public health, public safety, public property or the public peace, may be made effective upon adoption, but such ordinance may not levy taxes, grant, renew, or extend a franchise, or authorize the borrowing of money”; NOW THEREFORE, the City Council of the City of Ocean Shores does ordain as follows: 1. Findings of Fact. The City Council adopts the above recitations as findings of fact justifying this moratorium and may supplement these findings of fact before or immediately after the public hearing on this moratorium. 2. Moratorium Established. A moratorium is hereby imposed in all zones in the City of Ocean Shores with respect to the acceptance or processing of land use, building or permitting applications for any and all new construction associated with homeless shelters, homeless drop-in centers, tiny homes, and similar accommodation to homeless persons in all zones of the City of Ocean Shores. (For purposes of this Section, "homeless" is defined as provided for in 24 CFR Part 91.5.) 3. Duration. The moratorium established by this ordinance shall be in effect for one- hundred eighty (180) days after adoption, unless repealed, extended or modified by the City Council. 4. Public Hearing. The City Council shall hold a public hearing and enter findings of fact, as required by RCW 35A.63.220 and RCW 36.70A.390, within sixty (60) days of adopting this ordinance. 5. Severability - Construction. If a section, subsection, paragraph, sentence, clause, or phrase of this ordinance is declared unconstitutional or invalid for any reason by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance unless the invalidity destroys the purpose and intent of this ordinance. If the provisions of this ordinance are found to be inconsistent with other provisions of the Ocean Shores Municipal Code, this ordinance is deemed to control. Page 2 of 3 Ordinance No. 10. Ordinance An ordinance of The City of Ocean Shores, Grays Harbor Cou... Page 12 of 35  6. Effective Date. In accordance with RCW 35A.12.130, this ordinance, as a public emergency ordinance, shall take effect and be in force immediately upon adoption. THIS ORDINANCE PASSED AND ADOPTED by the City Council of the City of Ocean Shores, Washington, at a regular open public meeting on this 13th day of January, 2020. Crystal L. Dingler, Mayor Attest: Sara Dawson, City Clerk REVIEWED AND APPROVED BY: Brent Dille, City Attorney Page 3 of 3 Ordinance No. 10. Ordinance An ordinance of The City of Ocean Shores, Grays Harbor Cou... Page 13 of 35 Page 14 of 35  City of Ocean Shores AGENDA BILL ------------------------------------------------------------------------------------------------------------------------------------------ COUNCIL MEETING DATE: January 13, 2020 SUBJECT: Agreement between the City of Ocean Shores and the Coastal Interpretive Center. CATEGORY: CONSENT AGENDA ORDINANCE STAFF REPORT PUBLIC COMMUNICATION RESOLUTION PROCLAMATION OLD BUSINESS X NEW BUSINESS ______CONSULTANT __X___REQUEST ______ STUDY SESSION ______REPORT ______OTHER ATTACHMENTS: A Request for the City Council of the City of Ocean Shores, Washington to approve an Agreement between the City of Ocean Shores and the Coastal Interpretive Center. SUMMARY/BACKGROUND: The City Council appropriated $60,000 in 2019-2020 Budget Amendment #2 for Coastal Interpretive Center (CIC) operations. The State Auditor’s Office recommended that the City enter into an agreement with the CIC to document the benefit the City is receiving for these funds. We are requesting Council approval of the agreement prior to our first payment to the CIC in 2020 EXPENDITURE AMOUNT: $ 60,000 AMOUNT BUDGETED: $ 60,000 BUDGET MODIFICATION REQUIRED: NO STAFF RECOMMENDATION: Approval MAYOR'S RECOMMENDATION: Approval PRESENTED BY: City Administrator Scott Andersen (BELOW TO BE COMPLETED BY CITY CLERK’S OFFICE) COUNCIL ACTION: APPROVED CONTINUED DENIED COUNCIL REQUEST FOR INFORMATION: 11-14-07 updated 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 15 of 35 Page 16 of 35  Coastal I IH r P The n11'ss1'onof the Coastal Interpretive Center is to educate the public ____C 6 Ilte 1‘ M about the natural and cultural histozy of Washington is Pacific coast; yj3 \\ ',.\ 0 Q }j,\1\! _<1—1o1{ ‘ and1'11sp1rethejoy and wonder ofnature. December 19, 2019 Mr. Scott Anderson City Administrator City of Ocean Shores 585 Pt. Brown Avenue NW Ocean Shores, Washington 98569 Attached is the Educational Agreement between the City of Ocean Shores and the Coastal Interpretive Center (CIC), signed by me as President of CIC’s Board of Directors, along with the required proof of insurance. Once the document has been fully executed by the City, please ensure a copy is sent to Kathie Foust, our Center Administrator, for our files. Thank you for your assistance and for the City's support of the Coastal Interpretive Center. Respectfully, K '~" .¢,@’7,2' /glancy K. Eldridge Board President 1033 Catala Avenue SW Ocean Shores, WA 98569 360-2894617 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 17 of 35  2020 AGREEMENT BETWEEN THE CITY OF OCEAN SHORES AND THE COASTAL INTERPRETIVE CENTER THIS AGREEMENT is made by and between the City of Ocean Shores,a non-charter code City of the State of Washington, hereinafter referred to as "City," and the Coastal Interpretive Center, a 501(C)(3) nonpro?t, incorporated in the State of Washington, hereinafter referred to as "CIC", and jointly referred to as "Parties." DEFINITIONS Educational Promotion. “Educational promotion” means outreach and other activities designed to promote public education concerning Washington’s natural and man-made coastal environments, and through the presentation of the region’s history and ecology; developing strategies to expand educational opportunities and increase awareness coastal environmental issues. Fund(s). "City Fund(s)" is defined as funds allocated through the budget process to the CIC for EducationalPromotion by the City of Ocean Shores. IN CONSIDERATION of the terms and conditions contained herein, the Parties covenant and agree as follows: 1. Purpose of Agreement. The purpose of this Agreement is to outlinethe CIC’s Educational Promotions funded through the City’s budget. 2. Administration. The Mayor or designee shall administer and be the primary contact for CIC regarding terms of this Agreement. For good cause, as solely determined by City, City may direct that CIC is no longer entitled to the use of said funds for Educational Promotion and terminate this Agreement. 3. Representations. CIC shall use the funds received from the City for Educational Promotionpurposes. By execution of this Agreement, CIC represents that the funds will be used for Educational Promotion as defined by this Agreement in accordancewith all current laws, rules and regulations. No substitutions of purpose or use of the funds shall be made without the written consent of City. City shall make decisions and carry out its other responsibilities in a timely manner. 4. Reporting. Two reports shall be due to the City from the CIC as provided below: A. Report due June 15, 2020: Shall show progress made by the CIC in fulfilling the intent of the Educational Promotion, such as assistanceto the City in planning educational exhibits along the High Dune Trail, the CIC’s planned participation in the City-sponsored summer educational and recreational program for kids, preparation or placement of small Page 1 of 7 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 18 of 35  temporary educational exhibits in the downtown area or businesses/hotels, and/or other efforts carried out by the CIC which meet the de?nition of Educational Promotion. The report shall also provide a spreadsheetshowing funds expended to date in broad categories such as advertising, payroll, and enhancement. B. Final Report due December 1, 2020: Shall show progress made and the ?nal outline for the full year, including any City funded Educational Promotionsplanned for December, and show how funds were spent. 5. Term of Contract. This Agreement shall be in full force and effect upon full execution, and shall remain in effect until December 31, 2020. Either Party may terminate this Agreement by thirty (30) days written notice to the other Party or with no notice upon a determinationby the City that the funds will not be or have not been used for the purpose as stated in this Agreement. In the event of such termination, CIC shall return any unused funds and the City shall cease and desist from distributing any further funds to CIC for work performed or otherwise. 6. Payment. City agrees upon presentation of an invoice by CIC for $30,000, to provide that sum to the CIC for Educational Promotion purposes for the first half of 2020. Upon receipt and acceptance by the City of the June 15”‘Report and receipt of an invoice for the remaining $30,000 authorized by the City Council in the City budget, the City agrees to provide that additional sum for Educational Promotion purposes for the second half of 2020. City reserves the right to withhold payment of funds under this Agreement which is determinedin the reasonablejudgment of the Mayor or designee to be noncompliant with the scope of work, City standards, and City ordinances, or federal or state law. 7. Notice. Notice shall be given in writing as follows: TO CITY: TO CIC: City Administrator . Executive Director Phone Number: 360-58 l -53 86 Phone Number: 360-289~46l7 Address: PO Box 909 Address: 1033 Catala SE Ocean Shores, WA 98569 Ocean Shores, WA 98569 8. Applicable Laws and Standards. The Parties, in the performance of this Agreement, agree to comply with all applicable federal, state, and local laws, ordinances, and regulations. 9. Relationship of the Parties. It is understood, agreed and declaredthat CIC, its employees, volunteers, agents and assigns shall be an independentcontractor and not the agent or employee of City, that City is interested in only the results to be achieved, and that the right to control the particular manner, method, and means in which the services are performed is solely within the discretion of CIC. Any and all employees who provide services to City under this Agreement shall be deemed employees solely of CIC. CIC shall be solely responsible for the conduct and actions of all employees of CIC under this Agreement and any liability that may attach thereto. Page 2 of 7 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 19 of 35  10. Records. The City or State Auditor or any of their representatives shall have full access to and the right to examine during normal business hours all of CIC's records with respect to all matters covered in this Agreement. Such representatives shall be permitted to audit, examine and make excerpts or transcripts from such records and to make audits of all contracts, invoices, materials, payrolls and record of matters covered by this Agreement for a period of three years from the date ?nal payment is made hereunder. ll. Insurance. CIC shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by CIC, its agents, representatives, employees or subcontractors. A. Minimum Scope of Insurance. CIC shall obtain insurance of the types described below: 1. Automobile liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. If use of vehicles pursuant to the Agreement is only incidental, and CIC will not transport any persons not directly related or affiliated with CIC, then CIC is only required to have automobileliability insurance to meet at least minimum Washington state requirements. 2. Commercial general liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop-gap independent contractors and personal injury and advertising injury. City shall be named as an additional insuredunder CIC’s commercial general liability insurancepolicy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO CG 20 26. l 3. Workers’ compensation coverage as required by the industrial insurance laws of the l l State of Washington. l 1 1 I Minimum Amounts of Insurance. CIC shall maintain the following insurance limits: l l 1. Automobile liability insurance with a minimum combined single limit for bodily injury and property damage of no less than $1,000,000 per accident. If CIC will not use its vehicles in the performance of this Agreement, automobile liability insurance is only required to meet Washington statutory minimum requirements. 2. Commercial general liability insurance shall be written with limits no less than $1,000,000 for each occurrence, and $2,000,000 for general aggregate. C. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the followirig provisions for automobile liability, professional liability and commercial general liability insurance: Page 3 of 7 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 20 of 35  1. CIC’s insurance coverage shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of CIC’s insurance and shall not contribute with it. 2. CIC shall fax or send electronically in .pdf format a copy of insurer’s cancellation notice within two (2) business days of receipt by CIC. D. Acceptability of Insurers. Insurance is to be placed with insurerswith a current A.M. Best rating of not less than A:VII. E. Evidence of Coverage. As evidence of the insurance coverages required by this Agreement, CIC shall furnish acceptable insurance certificates to the City at the time CIC returns the signed Agreement, which shall be Exhibit 4. The certi?cate shall specify all of the parties who are additional insureds, and shall include applicable policy endorsements,and the deduction or retention level. Insuring companies or entities are subject to City acceptance. If requested, complete copies of insurance policies shall be provided to the City. CIC shall be financially responsible for all pertinent deductibles, self-insured retentions, and/or self—insurance. F. Failure to Maintain Insurance. Failure on the part of the CIC to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving at least five days’ written notice to CIC to cure the breach, immediately terminate the Agreement or, at the City’s discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the CIC from the City. G. City Full Availability of CIC’s Insurance Limits. If the CIC maintains higher insurance limits than the minimums shown above, the City shall be insured for the full available limits of commercialgeneral and excess or umbrellaliabilitymaintainedby the CIC, irrespective of whether such limits maintained by the CIC are greater than those required by this Agreement or whether any certificate of insurance furnished to the City evidences limits of liability lower than those maintained by the CIC. 12. Indemni?cation and Hold Harmless. CIC shall, at its sole expense, defend, indemnify and hold harmless City and its officers, agents, and employees, from any and all claims, actions, suits, liability, loss, costs, attorney's fees and costs of litigation, expenses, injuries, and damages of any nature whatsoever relating to or arising out of the wrongful or negligent acts, errors or omissions in the services provided by CIC, CIC's agents, subcontractors, subconsultants and employees to the fullest extent permitted by law, subject only to the limitations provided below. CIC's duty to defend, indemnify and hold harmless City shall not apply to liability for damages arising out of such services caused by or resulting from the sole negligence of City or City's agents or employees pursuant to RCW 4.24.115. CIC's duty to defend, indemnify and hold harmless City against liability for damages arising out of such services caused by the concurrent negligence of (a) City or City’s agents or employees, and (b) CIC, CIC's agents, subcontractors, subconsultantsand employees, shall apply only to the extent of the negligence of CIC, CIC's agents, subcontractors, subconsultantsand employees. Page 4 of 7 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 21 of 35  CIC's duty to defend, indemnify and hold City harmless shall include, as to all claims, demands, losses and liability to which it applies, City's personnel—relatedcosts, reasonable attorneys’ fees, and the reasonable value of any services rendered by the of?ce of the City Attorney, outside consultant costs, court costs, fees for collection, and all other claim—related expenses. CIC speci?cally and expressly waives any immunity that may be granted it under the Washington State Industrial Insurance Act, Title 51 RCW. These indemni?cation obligations shall not be limited in any way by any limitation on the amount or type of damages, compensationor bene?ts payable to or for any third party under workers‘ compensation acts, disability bene?t acts, or other employee bene?ts acts. Provided,that CIC's waiver of immunity under this provision extends only to claims against CIC by City, and does not include, or extend to, any claims by CIC's employees directly against CIC. CIC hereby certi?es that this indemni?cation provision was mutually negotiated. 13. Waiver. No of?cer, employee, agent or other individual acting on behalf of either Party has the power, right or authority to waive any of the conditions or provisions of this Agreement. A waiver in one instance shall not be held to be a waiver of any other subsequent breach or nonperformance. All remedies afforded in this Agreement or by law, shall be taken and construed as cumulative, and in addition to every other remedy provided herein or by law. Failure of either Party to enforce at any time any of the provisions of this Agreement or to require at any time performance by the other Party of any provision hereof shallin no way be construed to be a waiver of such provisions nor shall it affect the validity of this Agreement or any part thereof. 14. Assignment and Delegation. Neither Party shall assign, transfer or delegate any or all of the responsibilitiesof this Agreement or the benefits received hereunder without ?rst obtaining the written consent of the other Party. 15. Subcontracts. Except as otherwise provided herein, CIC shall not enter into subcontracts for any of the work contemplated under this Agreement without obtaining prior written approval of City. 16. Confidentiality. CIC may, from time to time, receive information which is deemed by the City to be confidential. CIC shall not disclose such information without the prior express written consent of the City or upon order of a Court of competent jurisdiction. 17. Jurisdiction and Venue. This Agreement is entered into in Grays Harbor County, Washington. Disputes between the City and CIC shall be resolved in the Superior Court of the State of Washington in Grays Harbor County. Notwithstanding the foregoing, CIC agrees that it may, at the City’s request, be joined as a party in any arbitrationproceeding between the City and any third party that includes a claim or claims that arise out of, or that are related to CIC’s services under this Agreement. CIC further agrees that the Arbitrator(s) decision therein shall be final and binding on CIC and that judgment may be entered upon it in any court having jurisdiction thereof. Page 5 of 7 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 22 of 35  18. Cost and Attorney’s Fees. The prevailing party in any litigation or arbitration arising out of this Agreement shall be entitled to its attorney’s fees and costs of such litigation (including expert witness fees). 19. Entire Agreement. This written Agreement constitutesthe entire and complete agreement between the Parties and supersedes any prior oral or written agreements. This Agreement may not be changed, modi?ed or altered except in writing signed by the Parties hereto. 20. Anti—kickback. No officer or employee of City, having the power or duty to perform an of?cial act or action related to this Agreement shall have or acquire any interest in this Agreement, or have solicited, accepted or granted a present or future gift, favor, service or other thing of value from any person with an interest in this Agreement. 21. Severability. If any section, sentence, clause or phrase of this Agreement should be held to be invalid for any reason by a court of competent jurisdiction, such invalidity shall not affect the validity of any other section, sentence, clause or phrase of this Agreement. 22. Exhibits. Exhibits attached and incorporated into this Agreement are: Exhibit 1: Insurance Certi?cates The Parties have executed this Agreement this ggdayof i '1 , 2020. COASTAL INTERPRETIVE CENTER ,By:// Q/d’&"'L" Its: Authorized Representative Page 6 of 7 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 23 of 35  Exhibit 1 ON FILE WITH CITY CLERK Page 7 of 7 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 24 of 35  Page 1 jgBrQ“v~Jr1&Ridi11g CONFIRMATIONOF COVERAGE # 842452 PRODUCER: McGregor Insurance, Inc. 849 Pt. Brown Ave Northwest Suite 5 5 Ocean Shores, WA 98569 ATTENTION: Mike McGregor I INSURED: Coastal Interpretive Center 1033 Catala Ave SE I Ocean Shores, WA 98569 I TERM: 04/04/2019 - 04/04/2020 COMPANY: Great American Insurance Company POLICY #: EPP3861258 Confirmation of Coverage expires on 07/03/2019 unless cancelled or replaced by the policy. COVERAGE(S): Non-Profit Directors and Officers Liability& Employment Practices Liability Claims Made Prior and Pending Litigation Date: 4/4/2012 LlMlT(S): $1,000,000 Non-Profit Directors and Officers Liability& Employment Practices Liability -Shared Limit -Third Party EPL Included -Defense Outside Additional Limitslsublimits: { $10,000 Donor Data Loss Crisis Fund Sublimit of Liability $150,000 FLSA Defense Sublimit of Liability(Wage and Hour) $500,000 AdditionalLimit of LiabilityDedicated for Insured Persons $50,000 Aggregate Terrorism Travel Reimbursement Fund Sublimit $50,000 Aggregate Workplace Violence Counseling Fund Sublimit $50,000 Aggregate Incident Crisis Fund Sublimit $100,000 Sublimit for Costs of Defense for Claims for Breach of an Emp|oymentAgreement RETENTION(S): Insuring Agreement A: $0 Each Claim Insuring Agreements B and/or C: $1,000 Each Claim 901 5th Avenue, Suite 2300, Seattle, WA 98164 — ph. (206)816-6767 - fx. (206)816~6744 C/-\l_.icense #0592033 ' T10—03.03/ 09.26.14 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 25 of 35  Page 2 EB1“Qm:1&RiLii11g TERMS: Admitted Carrier SUBJECT TO due prior to binding: N/A Policy form: D16100 Non-Profit Executive Protection and Employment Practices Endorsements: D16337 WASHINGTONAMENDATORYENDORSEMENT D16548 SUBLIMITOF COVERAGE FOR TELEPHONE CONSUMER PROTECTION ACT CLAIMS -$100,000 sublimit with $1,000 retention D 16712(3) (10/14) ELITECOVERAGE ENDORSEMENT -Independent Contractors now added as Insured Persons -Loss includes Liquidated damages -Costs of defense added for EPL related contract claims -$500,000 Side A Limit -80/20 Hammer Clause -Allocation wording D16712 (13) GREAT AMERICANNONPROFIT EAGLE ENDORSEMENT — $50,000 Aggregate Terrorism Travel Reimbursement Fund Sublimit -$50,000 Aggregate Workplace Violence Counseling Fund Sublimit - $50,000 Aggregate Incident Crisis Fund Sublimit -$100,000 Sublimit for Costs of Defense for Claims for Breach of an Employment Agreement D16714 (2) SPECIFIED SERVICES MANAGEMENTCARVEOUT DTCOV COVERAGE FOR ACTS OF TERRORISM lL7324 ECONOMIC AND TRADE SANCTIONS CLAUSE Term Premium $ 892.00 Broker fee $ 200.00 Fully retained at inception Total Gross Amount $ 1,092.00 Payment due in 20 days. 25.0% MINIMUMRETAINEDPREMIUMIN THE EVENTOF CANCELLATION.NO FLAT CANCELLATIONS. Please review carefully. Coverages provided may differ from those requested. 901 5th Avenue, Suite 2300, Seattle, WA 98164 - ph. (206)816-6767 - fx. (206)816-6744 - CA License #0592033 T10—03.03/ 09.26.14 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 26 of 35  Page 3 B1"ow118<Ri.di1'1g This Confirmation is intended for use as evidence that insurance as described has been effected, against which a Policy or Policies will be issued. This Confirmation and the insurance effected by it are subject to all terms, conditions and provisions of the Policy or Policies to be issued and in the event of any inconsistency therewith, the terms, conditions and provisions of the Policy or Policies shall prevail. Brown & Riding has the right to cancel any binder or policy in accordance with the cancellation provisions of such binder or policy. When coverage is bound by Brown & Riding, a charge will be made in accordance with the policy terms and upon binding, all fees for the full policy term will be fullyearned. Producer guarantees payment of premium for risks placed through Brown & Riding. lf Producer does not make timely payment of any sums due Brown & Riding, then Brown & Riding may, without limitationof other remedies, cancel the policy for non-payment of premium. Brown & Riding assumes no legal obligation as to the insurance applicant, insured, or known or unknown third parties regarding the suitability, adequacy, or appropriateness of limits,terms, conditions, exclusions, and other policy features. Producer shall be responsible for disclosing to Producer's customer all Brown & Riding broker fees, other fees, and charges disclosed by Brown & Riding to Producer. Producer shall hold harmless Brown & Riding, and Brown & Riding shall hold harmless Producer, from any and all of the respective negligent or wrongful acts, omissions, or conduct that result in a financial or other obligation to the other. in the event of a dispute between Brown & Riding and Producer, the prevailing party shall be entitled to recover its attorneys‘ fees, costs, and related litigation expenses in addition to any other recovery. Whilewe do encourage policyholders to submit all claim notices directly, Brown & Riding remains happy to assist throughout the reporting and adjustment process. Please feel free to contact us at claimdesk@brcins.com with any claim~relatedquestions, requests, or concerns. The responsibility for the accuracy of the information set forth in any certificate of insurance is the sole responsibility of the person or entity which issues the certificate. Although Brown & Riding may retain copies of certificates of insurance forwarded to us, Brown & Riding does so strictly without prejudice as to their accuracy. Neither the insurers, their representatives, nor Brown & Riding will be responsible for any liabilityresulting from your issuance any certificate of insurance. We also draw your attention to the fact that unless the policy is physically endorsed, the issuance of a certificate does not amend, extend, or alter the coverage afforded by the policy or change the person(s) or entities to whom such coverage is afforded under the policy. Moreover, neither the underwriters, their representatives, nor Brown & Riding will be responsible for any liabilityresulting from the issuance of any unauthorized endorsement or the issuance of an endorsement which has been authorized by the insurers but where the authorized wording has been amended or revised in any way, without the prior written approval of the insurers. By binding this coverage, the Retailer confirms that the prospective insured has (1) been advised of the right to receive policy documents in paper format; and (2) has consented to receive all such documents electronically. Regards, 901 5th Avenue, Suite 2300, Seattle, WA 98164 — ph. (206)816-6767 - fx. (206)816-6744 - CA License #0592033 T10-03.03 / 09.26.14 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 27 of 35  Page 4 BrQw11&Ridi11g Lisa Rodriguez 901 5th Avenue, Suite 2300, Seattle, WA 98164 — ph. (206)816-6767 — fx. (206)816-6744 - CA License #0592033 T10—O3.03/ 09.26.14 _._2_4_.._ , __..___..__._._._M.__.-_,,.,._.,_ ,, .__,#,.. _*._A-‘.,.-~‘ , _. _a_.._-. _._. __.-__...._, ,.. _ __ _.., __.. _ .., . 67%»- 11. Request A Request for the City Council of the City of Ocean Shores, ... Page 28 of 35  MRSC - SHB 1406: Understanding the Affordable Housing Sales Tax Credit Page 1 of 7 SHB 1406: Understanding the Affordable Housing Sales Tax Credit July 17, 2019 by Toni Nelson Category: Housing , New Legislation and Regulations , Sales and Use Taxes Editor's note: Due to the high-profile and fast-moving nature of this topic, we will be updating this post with new information and examples as they become available. Readers are encouraged to bookmark this page and check back frequently, or eligible government agencies may also submit questions about SHB 1406 to our Ask MRSC service. Significant recent updates include: • December 12, 2019: Updated revenue estimate worksheet with Q2 2019 sales tax data; added Port Angeles to list of cities with qualifying local tax • October 24, 2019: Added Ellensburg ordinance (city has qualifying local tax) • September 9-17: Added additional ordinances/resolutions from East Wenatchee, Skamania County, Tukwila, and Tumwater. • August 28: Clarified timing of adoption of enacting ordinances and calculation of maximum distribution caps, emphasizing need for counties to adopt their ordinances first to maximize revenues; added Pacific County ordinance. • August 20: Added links to WSAC resources and Pierce County ordinance. • August 8: Updated revenue estimate worksheet with Q1 2019 sales tax data from DOR; added sample resolutions of intent. • July 24: Added examples of resolutions of intent. http://mrsc.org/Home/Stay-Informed/MRSC-Insight/July-2019/SHB-1406-Affordable-Hous... 1/7/2020 13. SHB 1406 The intent of the City of Ocean Shores to adopt legislation... Page 29 of 35  MRSC - SHB 1406: Understanding the Affordable Housing Sales Tax Credit Page 2 of 7 The 2019 legislative session produced a plethora of bills, but SHB 1406 (codified as RCW 82.14.540) has generated significant buzz as it will provide a new affordable housing revenue stream for those counties, cities, and towns that choose to participate. This sales tax option is actually a credit against the state sales tax rate of 6.5%, so it will not increase the tax rate for consumers. However, cities, towns, and counties have a limited time to take advantage of this option and must act rather quickly if they wish to participate. It is imperative that cities and counties communicate and coordinate closely to implement this legislation, or else both cities and counties may lose out on some revenues. See the "tax rates for participating cities" and "annual maximum distribution cap" sections below for more information. In order to understand the foundation of this bill, it’s important to understand what is considered a participating and non-participating city or county. A “participating” city or county is one that chooses to impose the affordable housing sales tax credit provided in SHB 1406 and completes the required steps for adoption within the next 12 months, while a “nonparticipating” city or county is one that chooses not to implement the affordable housing sales tax credit. In this blog we discuss this complicated piece of legislation and some of the key decisions that eligible local governments will need to make within the next few months. How Can This Revenue Be Used? The intent of the legislation is to encourage local government investments in affordable and supportive housing, and as such, the funds will be considered a restricted revenue subject to reporting requirements and audit review for compliance. The use of this sales tax partially depends upon the size of your jurisdiction: For counties over 400,000 population and cities over 100,000 population: The funds may only be used for (a) acquiring, rehabilitating, or constructing affordable housing, which may include new units within an existing structure or facilities providing supportive housing services under RCW 71.24.385 (behavioral health organizations); OR (b) operations and maintenance costs of new units of affordable or supportive housing. For counties under 400,000 population and cities under 100,000 population: The funds may be used for the same purposes listed above, but they may also be used to provide rental assistance to tenants that are at or below 60% of the median income of the county or city that is imposing the tax. For any city or county, they may finance loans or grants to nonprofit organization or public housing authorities to carry out the purposes of the bill and may pledge the tax proceeds from SHB 1406 for repayment of bonds in accordance with debt limitations imposed by the state constitution or statute. Additionally, any participating city or county may enter into an interlocal agreement with other cities, counties, and/or housing authorities to pool and allocate the tax revenues received under SHB 1406 to fulfill the intent of the legislation. How Much Revenue Will We Receive? http://mrsc.org/Home/Stay-Informed/MRSC-Insight/July-2019/SHB-1406-Affordable-Hous... 1/7/2020 13. SHB 1406 The intent of the City of Ocean Shores to adopt legislation... Page 30 of 35  MRSC - SHB 1406: Understanding the Affordable Housing Sales Tax Credit Page 3 of 7 The answer to this question depends on whether your entity has a “qualifying local tax” (see below), the local economy, and the calculation of the revenue cap included in SHB 1406. Participating jurisdictions will receive revenues for 20 years, and the amount that you receive annually will be equivalent to either 0.0073% or 0.0146% of taxable retail sales in your jurisdiction, up to an annual maximum distribution cap that is based on FY 2019 taxable retail sales. Tax rates for participating counties Counties do not need a “qualifying local tax” and will automatically receive the maximum 0.0146% rate within the unincorporated areas, up to the annual maximum distribution cap described later. Within the boundaries of each city or town, you will receive 0.0146%, minus the rate being received by the city/town. Here are the variables: • If the city chooses not to participate but the county does participate, the county will receive the full 0.0146% within the city boundaries. • If a city elects to participate but does not have a “qualifying local tax” (see below), the city will receive the 0.0073% “half share” and the county will also receive a 0.0073% half share within the city boundaries. • If a city elects to participate and imposes a “qualifying local tax” by the deadline, the city will receive the full 0.0146% share and the county will not receive any revenues within the city boundaries. As the legislation is currently written, if the county elects not to participate, cities located within said county that have not enacted a qualifying local tax will not receive SHB 1406 revenues after the first year. Tax rates for participating cities The rate your city receive depends on whether it enacts a local qualifying tax (see below) prior to the deadline of July 27, 2020, as well as whether or not your county participates. • For cities that impose a qualifying local tax by the deadline, you will receive the maximum 0.0146% rate, up to the annual maximum distribution cap described below, regardless of whether your county participates. • For cities that do not have a qualifying local tax, you will receive the 0.0073% “half share,” up to the annual maximum distribution cap, but only if your county also elects to participate. If your county declares it will not participate or does not adopt the required resolution of intent by the end of January 2020, you will receive the full 0.0146% through July 27, 2020, but after that you will not receive any further revenues. In discussions with both Association of Washington Cities (AWC) and the Department of Revenue it is believed that this is due to a drafting error in the bill. AWC does not anticipate this scenario but asks that you let them know if your city finds itself in this situation! Annual maximum distribution cap SHB 1406 sets a cap on the maximum sales tax revenues to be credited to local government within any state fiscal year (July 1 to June 30). The cap will be calculated based upon the jurisdiction's taxable retail sales during the state’s 2019 fiscal year (July 1, 2018 — June 30, 2019). Just like the state shared revenue cycle, distributions will start July 1, and the state will cease distribution until the beginning of the next fiscal cycle if at any time during the fiscal period your distributions meet the cap. It is very important that counties adopt the enacting legislation prior to cities and towns, or else the counties may lose out on some revenues. (This applies only to the enabling "legislation" – the order of adoption of the "resolutions of intent" does not matter.) If the county adopts the imposing legislation prior to the city(s) within its boundaries, the http://mrsc.org/Home/Stay-Informed/MRSC-Insight/July-2019/SHB-1406-Affordable-Hous... 1/7/2020 13. SHB 1406 The intent of the City of Ocean Shores to adopt legislation... Page 31 of 35  MRSC - SHB 1406: Understanding the Affordable Housing Sales Tax Credit Page 4 of 7 county's revenue cap will be calculated based on the total countywide taxable retail sales in FY 2019, including both the unincorporated and incorporated areas of the county. But if any city adopts their enabling ordinance before the county, that city's taxable retail sales will be subtracted from the county's taxable retail sales, resulting in the county's annual maximum distribution cap being reduced for the entire 20-year state tax sharing period. (See section 4(a) of the legislation.) It’s also important to remember that retail sales can fluctuate from year to year depending upon a number of economic factors, so your revenues being generated from this sales tax credit (particularly in the early years when some jurisdictions might not hit their annual caps) may fluctuate as well. Revenue Estimates We have developed a worksheet for your revenue forecasting that was updated on December 16, 2019 with projections for both the 0.0073% and 0.0146% tax credit options. This data comes from DOR's Retail Sales for Cities and Counties. How Do We Impose This New Tax Option? To receive the affordable housing sales tax credit, you must: • Pass a resolution of intent by January 27, 2020 that indicates intention to impose the sales tax credit at the maximum capacity by a simple majority vote of the legislative body. This is the single most important step in being able to receive this sales tax credit option. If this deadline is missed, there are no other opportunities to access the tax. Here is a sample resolution of intent that has been prepared by Pacifica Law Group for the Association of Washington Cities (AWC) that will assist you in this process. Also see the sample resolutions at the end of this article. • Adopt legislation to authorize by July 27, 2020 to impose the maximum capacity of the affordable sales tax credit. This step must be completed in order to continue to access this sales tax credit whether you decide to impose a qualifying local tax or not. See the examples at the end of this article. Since the bill explicitly requires both a “resolution of intent,” which must be adopted by January 27, 2020, and “legislation to authorize the maximum capacity of the tax” (an ordinance for most jurisdictions, but for some counties this may be a resolution), which must be adopted by July 27, 2020, it is our recommendation that these documents be adopted separately. What Is a Qualifying Local Tax? A “qualifying local tax” (QLT) is a local property or sales tax that a city has imposed, separately from SHB 1406, to address affordable housing or related issues. This provision within the bill only applies to cities and towns, and it allows them to double the sales tax credit. Counties do not need a qualifying local tax to receive the maximum distribution. The QLT options are: • An affordable housing levy (RCW 84.52.105); • A sales and use tax for affordable housing (RCW 82.14.530); • A levy lid lift (RCW 84.55.050) that is restricted solely to affordable housing; or http://mrsc.org/Home/Stay-Informed/MRSC-Insight/July-2019/SHB-1406-Affordable-Hous... 1/7/2020 13. SHB 1406 The intent of the City of Ocean Shores to adopt legislation... Page 32 of 35  MRSC - SHB 1406: Understanding the Affordable Housing Sales Tax Credit Page 5 of 7 • A mental health and chemical dependency sales tax (RCW 82.14.460), which is only authorized by statute for those cities of at least 30,000 population located within Pierce County. According to our data, there are currently only seven cities that have implemented at least one of these qualifying local taxes: Bellingham, Ellensburg, Olympia, Port Angeles, Seattle, Tacoma, and Vancouver. (Port Angeles successfully passed an affordable housing sales tax in November 2019 – see the resolution at the end of this article which also provides a good analysis of election timing and costs.) All of the qualifying local taxes require voter approval with a simple majority vote (with the exception of the mental health and chemical dependency sales tax) and may be presented at any special, primary, or general election. (For more detailed information on any of these qualifying local taxes, refer to our Revenue Guide for Cities and Towns.) Deciding to present a qualifying local tax before the voters in order to gain the full tax credit will require some timing considerations, as the legislation requires that the qualifying local tax must be “instated” (which DOR is interpreting to mean “approved by voters”) within 12 months of the effective date of SHB 1406. This deadline is July 27, 2020. The deadline for placement on the general election ballot is fast approaching (August 6), and the only other elections before the July 2020 deadline are the special elections in February and April. When Will We Start to Receive Revenues from SHB 1406? The Department of Revenue (DOR) typically requires a 75-day notice for sales tax rate changes, but since this is a sales tax credit (not a new sales tax) it will therefore only require a 30-day wait period. The credit will take effect on the first day of the month following the 30-day period (RCW 82.14.055(2)). For example, if you adopt the resolution of intent and then the enabling legislation (ordinance/resolution) during August 2019, the tax will take effect on October 1. The sales tax revenues from October will be remitted by retailers to DOR by the 25th of the following month (November), and you will receive your first distribution of this tax credit on your end-of-month December disbursement from the State Treasurer’s office. Editor's note: In this example, the original article incorrectly stated that the revenues would be distributed at the end of November. For cities that have a qualifying local tax in place, you will receive the full credit of 0.0146% as soon as you adopt the enacting ordinance. For all other cities and towns that have adopted the enacting ordinance, you will collect a tax credit of 0.0073% until your ballot measure for a qualifying local tax has passed. This piece of legislation is complex and a bit confusing. We have worked closely with the DOR and the AWC to bring you as much information as possible to assist with your decisions to take the first step in the process — which is to pass a resolution of intent. MRSC is ready to answer any further questions that you may have. Please do not hesitate to send me an email or give me call. AWC and WSAC Resources For cities, the Association of Washington Cities (AWC) has prepared an implementation guide and flowchart to help in your decision-making process. For counties, the Washington State Association of Counties (WSAC) has prepared an implementation guide and flowchart, Sample Resolutions http://mrsc.org/Home/Stay-Informed/MRSC-Insight/July-2019/SHB-1406-Affordable-Hous... 1/7/2020 13. SHB 1406 The intent of the City of Ocean Shores to adopt legislation... Page 33 of 35  MRSC - SHB 1406: Understanding the Affordable Housing Sales Tax Credit Page 6 of 7 In addition to the Pacifica Law Group sample resolution of intent provided by AWC, below are a few examples of SHB 1406 resolutions we have come across. This is not a comprehensive list of all the cities and counties that are adopting resolutions. Many of the resolutions that have been adopted use very similar language based on the Pacifica Law Group example, but we will continue to monitor this topic and periodically add distinct or noteworthy examples to this list. Counties • Pierce County Resolution No. R2019-103 (2019) – Resolution of intent for county over 400,000 population • Skamania County Resolution No. 2019-30 (2019) – Resolution of intent for county under 400,000 population • Thurston County Resolution No. 15801 (2019) – Resolution of intent for county under 400,000 population, with intent to enter into interlocal agreement with cities to pool revenue. Cities • East Wenatchee Resolution No. 2019-18 (2019) – Resolution of intent for city under 100,000 population • Port Angeles Resolution No. 14-19 (2019) – Submitting 0.1% affordable housing sales tax (RCW 82.14.530) to voters as a qualifying local tax under SHB 1406. Includes analysis of election timing and costs, concluding it is much less expensive to submit a measure at the November 2019 general election (filing deadline: August 6) than at the February or April special election. • Tumwater Resolution No. R2019-006 (2019) – Resolution of intent for city under 100,000 population. • Vancouver Resolution No. M-4026 (2019) – Resolution of intent for city over 100,000 population. Includes staff report; note that Vancouver qualifies for the maximum 0.0146% because it already has a qualifying local tax. Sample Adopting Ordinances We will post selected examples of enacting ordinances that we receive below. • Ellensburg Ordinance No. 4836 (2019) – Adopting maximum 0.0146% rate for city under 100,000 population that has a qualifying local tax in place • Pacific County Ordinance No. 188 (2019) – Adopting maximum sales tax credit for county under 400,000 population. Ordinance clearly indicates which cities plan to participate; note that "qualifying local taxes" apply only to cities and are not required for counties to receive maximum distribution. • Pierce County Ordinance No. 2019-57s (2019) – Adopting maximum sales tax credit for county over 400,000 population. • Tukwila Ordinance No. 2613 (2019) – Adopting maximum sales tax tax credit for city under 100,000 population; includes potential for interlocal cooperation with other cities to be determined at a later date. • Tumwater Ordinance No. O2019-024 (2019) – Adopting maximum sales tax credit for city under 100,000 population. Effective date is January 1, 2020. MRSC is a private nonprofit organization serving local governments in Washington State. Eligible government agencies in Washington State may use our free, one-on-one Ask MRSC service to get answers to legal, policy, or financial questions. http://mrsc.org/Home/Stay-Informed/MRSC-Insight/July-2019/SHB-1406-Affordable-Hous... 1/7/2020 13. SHB 1406 The intent of the City of Ocean Shores to adopt legislation... Page 34 of 35  MRSC - SHB 1406: Understanding the Affordable Housing Sales Tax Credit Page 7 of 7 About Toni Nelson Toni has over 24 years of experience with Local Government finance and budgeting. Toni's area of expertise include "Cash Basis" accounting and reporting, budgeting, audit prep and the financial issues impacting small local government. VIEW ALL POSTS BY TONI NELSON © 2020 MRSC of Washington. All rights reserved. Privacy & Terms. http://mrsc.org/Home/Stay-Informed/MRSC-Insight/July-2019/SHB-1406-Affordable-Hous... 1/7/2020 13. 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