Council Packet 1/7/20 - City of Kirkland

1. CALL TO ORDER

2. ROLL CALL 3. STUDY SESSION (IN PETER KIRK ROOM)

a. City Debt and the Debt Issuance Process 4. COUNCILMEMBER(S) OATH OF OFFICE

a. Kelli Curtis

b. Amy Falcone

c. Toby Nixon

5. SELECTION OF MAYOR AND DEPUTY MAYOR

--Short Break--

6. HONORS AND PROCLAMATIONS

CITY OF KIRKLAND CITY COUNCIL

Penny Sweet, Mayor • Jay Arnold, Deputy Mayor • Neal Black • Kelli Curtis Amy Falcone •Toby Nixon • Jon Pascal • Kurt Triplett, City Manager

Vision Statement

K irk land is one of the most livable cit ies in America. We are a v ibrant, attractive, green and w elcoming place to live, w ork and play. Civic engagement, innovation and diversity are h ighly

valued. We are respectful, fair and inclusive. W e honor our rich heritage w hile embracing the future. K irk land strives to be a model, sustainable city that values preserving and

enhancing our natural env ironm ent for our en joyment and future generations.

123 Fifth Avenue • Kirkland, Washington 98033-6189 • 425.587.3000 • TTY Relay Service 711 • www.kirklandwa.gov

AGENDA KIRKLAND CITY COUNCIL MEETING

City Council Chamber Tuesday, January 7, 2020 5:30 p.m. – Study Session

7:30 p.m. – Regular Meeting COUNCIL AGENDA materials are available on the City of Kirkland website www.kirklandwa.gov. Information regarding specific agenda topics may also be obtained from the City Clerk’s Office on the Friday preceding the Council meeting. You are encouraged to call the City Clerk’s Office (425-587-3190) or the City Manager’s Office (425-587-3001) if you have any questions concerning City Council meetings, City services, or other municipal matters. The City of Kirkland strives to accommodate people with disabilities. Please contact the City Clerk’s Office at 425-587-3190. If you should experience difficulty hearing the proceedings, please bring this to the attention of the Council by raising your hand.

PLEASE CALL 48 HOURS IN ADVANCE (425-587-3190) if you require this content in an alternate format or if you need a sign language interpreter in attendance at this meeting.

ITEMS FROM THE AUDIENCE provides an opportunity for members of the public to address the Council on any subject which is not of a quasi-judicial nature or scheduled for a public hearing. (Items which may not be addressed under Items from the Audience are indicated by an asterisk*.) The Council will receive comments on other issues, whether the matter is otherwise on the agenda for the same meeting or not. Speaker’s remarks will be limited to three minutes apiece. No more than three speakers may address the Council on any one subject. However, if both proponents and opponents wish to speak, then up to three proponents and up to three opponents of the matter may address the Council.

http://www.kirklandwa.gov/




Kirkland City Council Agenda January 7, 2020

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7. COMMUNICATIONS

a. Announcements

b. Items from the Audience c. Petitions

8. PUBLIC HEARING 9. SPECIAL PRESENTATIONS 10. CONSENT CALENDAR

a. Approval of Minutes

(1) December 10, 2019

b. Audit of Accounts and Payment of Bills and Payroll

c. General Correspondence

d. Claims

(1) Claims for Damages

e. Award of Bids

f. Acceptance of Public Improvements and Establishing Lien Period

g. Approval of Agreements

h. Other Items of Business (1) Sales Tax Report

(2) Procurement Report

11. BUSINESS

a. Draft Legislative Support Agenda

b. Ordinance O-4714 and its Summary, Relating to Granting New Cingular

Wireless PCS, LLC, a Delaware Limited Liability Company, a Non-Exclusive Communications Master Use Permit for the Right, Privilege, and Authority to Make Use of the Permit Area for Communications Purposes

PUBLIC HEARINGS are held to receive public comment on important matters before the Council. You are welcome to offer your comments after being recognized by the Mayor. After all persons have spoken, the hearing is closed to public comment and the Council proceeds with its deliberation and decision making.

*QUASI-JUDICIAL MATTERS Public comments are not taken on quasi-judicial matters, where the Council acts in the role of judges. The Council is legally required to decide the issue based solely upon information contained in the public record and obtained at special public hearings before the Council. The public record for quasi-judicial matters is developed from testimony at earlier public hearings held before a Hearing Examiner, the Houghton Community Council, or a city board or commission, as well as from written correspondence submitted within certain legal time frames. There are special guidelines for these public hearings and written submittals.

ORDINANCES are legislative acts or local laws. They are the most permanent and binding form of Council action, and may be changed or repealed only by a subsequent ordinance. Ordinances normally become effective five days after the ordinance is published in the City’s official newspaper.

RESOLUTIONS are adopted to express the policy of the Council, or to direct certain types of administrative action. A resolution may be changed by adoption of a

Kirkland City Council Agenda January 7, 2020

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c. Reginal Economic Development Partnerships: Startup 425 and the InnovationTriangle

12. REPORTS

a. City Council Regional and Committee Reports

b. City Manager Reports

(1) KTUB Incident: Police Chief Investigation Findings and Next Steps

(2) Calendar Update

13. ITEMS FROM THE AUDIENCE

14. EXECUTIVE SESSION

a. Pending Litigation

b. To Review the Performance of a Public Employee

15. ADJOURNMENT

ITEMS FROM THE AUDIENCE Unless it is 10:00 p.m. or later, speakers may continue to address the Council during an additional Items from the Audience period; provided, that the total amount of time allotted for the additional Items from the Audience period shall not exceed 15 minutes. A speaker who addressed the Council during the earlier Items from the Audience period may speak again, and on the same subject, however, speakers who have not yet addressed the Council will be given priority. All other limitations as to time, number of speakers, quasi-judicial matters, and public hearings discussed above shall apply.

EXECUTIVE SESSIONS may be held by the City Council only for the purposes specified in RCW 42.30.110. These include buying and selling real property, certain personnel issues, and litigation. The Council is permitted by law to have a closed meeting to discuss labor negotiations, including strategy discussions.

Debt Study Session Overview

CITY OF KIRKLAND 123 Fifth Avenue, Kirkland, WA 98033 425.587.3000 www.kirklandwa.gov

MEMORANDUM

To: Kurt Triplett, City Manager

From: Michael Olson, Director of Finance and Administration David Goldman, Deputy Director of Finance and Administration

Date: 12/16/2019

Subject: City Debt and the Debt Issuance Process

RECOMMENDATION:

City Council receives a briefing on the City’s current debt, potential debt refunding, allowable debt and the process for issuing debt. City Council approval is required to issue any debt.

BACKGROUND DISCUSSION:

Current City Debt The City of Kirkland currently has seven long-term debt obligations, four General Obligation bonds and three Public Works Trust Loans (which are repaid from Water/Sewer Fund revenues), described below.

General Obligation Bonds 2010 Limited Tax General Obligation (LTGO) bonds, taxable Build America Bonds (BABS). To acquire the property, the building and finance the renovation for the Kirkland Justice Center. The amount issued was $35.345 million. The bonds are currently outstanding in the amount of $28.125 million with an annual debt service of approximately $2.1 million and maturity on 12/1/2040.

2011 LTGO bonds. These bonds were issued by Fire District #41 prior to being assumed by Kirkland in the 2011 annexation. The amount issued was $4.0 million. The bonds are currently outstanding in the amount of $904,670 with an annual debt service of $470,572 and maturity on 12/1/2021.

2013 Unlimited Tax General Obligation (UTGO) refunding bonds. These bonds were originally issued in 2003 for park acquisition and improvements. The outstanding amount of $4.67 million was refinanced in 2013. The bonds are currently outstanding in the amount of $1.620 million, with an annual debt service of approximately $565,000, and maturity on 12/1/2022.

2015 LTGO bonds. $5.8 million issued for the City Hall remodel. The bonds are currently outstanding in the amount of $4.875 million, with annual debt service of approximately $420,000 and maturity on 12/1/2034.

Council Meeting: 1/7/2020 Agenda: Study Session Item #: 3. a.

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Public Works Trust Fund Loans 2001 Public Works Trust Loan. Issued for the construction of the Juanita Lift Station Replacement project in the amount of $1.848 million. The loan is currently outstanding in the amount of $205,937 with an annual debt service of about $104,000, and maturity on 7/1/2021.

2004 Public Works Trust Loan. Issued for the Central Way Sewer Replacement project in the amount of $1.086 million. The loan is currently outstanding in the amount of $286,663 with an annual debt service of about $59,000, and maturity on 7/1/2024.

2012 Public Works Trust Loan. Issued for the NE 80th Street Water/Sewer Main Replacement project in the amount of $4.038 million. The loan is currently outstanding in the amount of $3,299,556 with an annual debt service of about $254,000, and maturity on 6/1/2032.

Debt Refunding The City’s Debt Policy states that the City will use refunding bonds, where appropriate, when restructuring its current outstanding debt. A debt refunding is a refinance of debt typically done to take advantage of lower interest rates. The Policy states that debt refunding should not be pursued without a sufficient net present value benefit after expenses, unless otherwise justified, such as a desire to remove or change a bond covenant. Staff requested the City’s Financial Advisor to evaluate the interest rates on the City’s outstanding 2010 Limited Tax General Obligation (LTGO) bonds and determined that it would be financially beneficial to refund those bonds. The estimated net present value savings would be almost $2.6 million or 9.62% over the remaining life of the bonds, about $150,000 each year. Attachment A provides additional details. With Council direction, staff could bring back an authorizing ordinance for approval at a future council meeting.

Debt Policy Overview The Debt Policy for the City of Kirkland, approved by City Council in 2010, was established to help ensure that all debt is issued both prudently and cost effectively. The policy includes the following six sections: 1) Uses of Debt 2) Debt Limits 3) Allowable Types of Debt 4) Debt Structuring Practices 5) Debt Issuance Practices and 6) Debt Management Practices which are briefly summarized in this memo. Further detail can be found in the Debt Policy, Attachment B, following the memo.

31,524,712,048$

Debt TypeLegal Limit % of AV Legal Limit Current Debt

Available Debt Capacity

LTGO 1.5% 472,870,681$ 33,904,670$ 438,966,011$ UTGO 1.0% 315,247,120$ -$ 315,247,120$ Utility 2.5% 788,117,801$ -$ 788,117,801$ Open Space and Park Facilities 2.5% 788,117,801$ 1,620,000$ 786,497,801$

City of Kirkland 2019 Assessed Valuation (AV)

City of Kirkland General Obligation Debt and Legal Limits

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Uses of Debt In the absence of cash resources to finance major facilities projects, the use of debt financing is the primary alternative to equalize the costs of needed capital improvements for the benefit of both present and future residents, to reduce the immediate costs of substantial public improvements and to finance capital improvements that are unable to be financed from current revenues. Debt is not to be used as a mechanism to support current operations, or to finance furnishing, supplies, and personnel. Debt Limits Legal Limits. Under state law, General Obligation debt must not exceed an aggregate total of 7.5% of the assessed valuation of the taxable property within the City. Note that the assessed valuation limits for specific debt categories, the legal limit and available general obligation debt capacity were detailed earlier in this memo. Kirkland’s legal debt capacity of hundreds of million of dollars far exceeds any amount of debt the City would likely issue. Public Policy Limits. Debt can be issued in accordance with the City’s adopted Capital Improvement Plan (CIP) as long as the source of funds to cover debt service is identified. Debt can be issued for economic development activities, as determined by the City Council, as long as the new revenues generated from such activity is sufficient to support the debt payments.

Financial Limits. Before issuing debt, the City will conduct a debt affordability analysis including a review of available resources to determine the amount of debt the City can support. Debt service payments should be a predictable and manageable part of the operating budget. Allowable Types of Long-term Debt General Obligation debt is secured by the full faith and credit of the city issuing the debt based on the ability to levy taxes to repay the debt. As a result of the low risk nature of this type of debt for cities like Kirkland with excellent credit ratings, this debt typically has the lowest interest rates. There are two versions of this type of debt: Limited Tax General Obligation (LTGO) and Unlimited Tax General Obligation (UTGO) debt.

LTGO debt (also called “councilmanic” debt) may be issued by a vote of the City Council. It is important to note that LTGO debt does not provide any additional revenue to fund debt service payments and must be paid from existing revenue sources. UTGO debt, on the other hand, does create a new revenue source that is automatically adjusted yearly to repay the debt. UTGO debt must be approved by 60% of the voters with a voter turnout equal to at least 40% of those who voted in the most recent general election. When voter go to the polls, they are asked to approve the issuance of the debt and simultaneously asked to approve an excess property tax levy which raises their property taxes. The excess levy for UTGO debt service remains in place for the full duration of the UTGO bond issue. Final maturity cannot exceed the maximum term in the ballot proposition considered and approved by voters. The most common maximum terms for UTGO bonds are 20 or 30 years, but State law does permit a maximum term of 40 years.

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Revenue debt is secured by one or more specific revenues, such as utility rates, generated by the city. Revenue debt is used to finance construction or improvements to facilities of enterprise systems operated by the City in accordance with the Capital Improvement Program and are generally payable from the enterprise. Currently the only enterprise funds for Kirkland with City owned infrastructure are the Kirkland utilities of water & sewer and surface water. No taxing power or general fund pledge is provided as security. Unlike general obligation bonds, revenue bonds are not subject to the City’s statutory debt limitation, nor is voter approval required. However, the City must always ensure that the revenue stream backing the bonds is sufficient to cover the debt payments. This can require raising rates or making offsetting reductions. Special assessment debt is repaid from assessments on properties that receive a direct benefit from the project or improvement that the debt was issued to fund. For example, Local Improvement District (LID) Bonds represent debt that is repaid by the property owners whose properties benefited from the capital improvement through annual assessments paid to the City. LID’s are formed by the City Council after a majority of property owners agree to the assessment. The City has no special assessment debt at this time. Debt Structuring Practices The average maturity of bonds issued shall be less than or equal to the average life of the assets being financed. General Obligation bond maturities shall not exceed 30 years, unless otherwise approved by Council. Unless otherwise justified and deemed necessary, debt service should be structured on a level or declining repayment basis. Additionally, debt refunding shall only be pursued if there is a net present value benefit after expenses.

Bond amortization schedules, also known as the debt repayment schedules, listing the annual principal and interest payments, will be structured to minimize interest expense with the constraints of revenues available for debt service. The bonds should include early redemption (call) features to maximize the City’s ability to refund or retire the debt early. However, call features should be balanced with market conditions to ensure that the total cost of the financing is not adversely affected. Debt Issuance Practices The following practices are outlined in the Debt Policy for the issuing of debt. City Council can approve the use of debt as a funding source with the adoption or updates to the City’s Capital Improvement Program (CIP) however, an authorizing ordinance must be approved by City Council prior to any specific issuance of debt. Specific practices required by policy prior to debt issuance also include, but are not limited to, the following:

An analytical review shall be conducted prior to the issuance of debt including, but not limited to, monitoring of market opportunities and structuring and pricing of the debt. The City’s Finance and Administration Department shall be responsible for the solicitation and selection of professional services that are required to administer the City’s debt program including: bond counsel, financial advisor, underwriters, and fiscal agent. The Finance Director, City Attorney and bond counsel shall coordinate their activities and review all debt issuance to ensure that all securities are issued in compliance with legal and regulatory requirements by the State of Washington and the Federal Government’s laws, rules and regulations.

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The Director of Finance and Administration shall determine the method of sale best suited for each issue of debt, with a preference for a competitive process. For each issue, the City will evaluate the costs and benefits of bond insurance or other credit enhancements. The City will continually strive to maintain its bond rating by improving financial policies, budget, forecasts and the financial health of the City so its borrowing costs are minimized and its access to credit is preserved. Kirkland currently has a AAA credit rating from Standard & Poor’s and Aaa from Moody’s which are the highest ratings available. The key credit factors, including current debt burden and future need for debt, will be included in the discussion at the study session on January 7, 2020. Debt Issuance Process A presentation of the debt issuance process, including authorization, participants, and sequence of events will also be discussed during the study session.

Debt Management Practices After the issuance of debt there are additional laws and best practices outlined in the Debt Policy which the City must comply with, including the following:

The City shall comply with all applicable Federal, State laws and contractual restrictions regarding the investment of bond proceeds, including City of Kirkland Investment Policy. The City shall provide annual disclosure information to established national information repositories and maintain compliance with disclosure statements as required by state and national regulatory bodies.

The City will, unless otherwise justified, use bond proceeds within the established time frame pursuant to the bond ordinance, contract or other documents to avoid arbitrage. Arbitrage is the interest earned on the investment of the bond proceeds above the interest paid on the debt.

The City shall endeavor to maintain a positive relationship with the investment community through the provision of public financial information.

The City’s debt policy shall be adopted by the City Council and be periodically reviewed.

Cost of Debt The cost of debt varies based on several factors including interest rate, term, and cost of issuance. For example, for every $1 million borrowed in 2020, the annual debt service would be $56,685, the levy rate would be 0.0018 and the cost to the medium Kirkland home (assessed value of $730,000) would be $1.31 per year*.

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For every $1 Million Borrowed

$50 Million Bond

* Based on information provided by our Financial Advisor for a $50 million 30-year bond. The City’s Financial Advisor, Fred Eoff of PFM and the City’s Bond Council, Deanna Gregory from Pacifica Law Group will present an overview of the bond issuance process at the Council Study Session on January 7, 2020. Projects There are six projects from recent CIP processes approved by the Council where debt was identified as one of the funding sources as listed in the table below. Staff is reviewing cashflow needs and once the projects are out to bid there will be a better understanding of the amount and the timing of debt needed to fund the projects. In the first quarter of 2020, staff will also be reviewing capital revenues sources such as REET 1 and REET 2, and sales taxes above projections, to identify whether debt requirements could be reduced. Council will be updated once this information is available, and debt issuance will also be an important topic at both the February and May financial retreats.

TermAnnual Debt Service

UTGO Levy Required

Annual Cost to Median Home

9-year 138,885$ 0.00441 3.22$ 20-year 70,740$ 0.00224 1.64$ 30-year 56,685$ 0.00180 1.31$

TermAnnual Debt Service

UTGO Levy Required

Annual Cost to Median Home

9-year 6,944,250$ 0.22028 160.80$ 20-year 3,537,000$ 0.11220 81.90$ 30-year 2,834,250$ 0.08991 65.63$

Project Project TotalPotential

Debt NeededNE 124th St/124th Ave NE Ped Bridge Design and Construction 18,290,700$ 10,000,000$ Juanita Drive Intersection and Safety Improvements 6,805,200$ 4,755,200$ 100th Avenue NE Roadway Improvements (Mid-North Section) 5,569,300$ 571,100$ 100th Avenue NE Roadway Improvements (North Section) 3,730,500$ 296,000$ NE 132nd St/108th Avenue NE Intersection Improvemens 1,287,100$ 500,000$ Totem Lake Public Improvements Phase II 15,000,000$ 7,500,000$ Total 50,682,800$ 23,622,300$

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,, ,, ,,

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,, ,,

Year Ending12/31 Principal Interest Subsidy Net Total D/S Debt Service Savings2020 1,487,505$ (504,041) 983,464 929,388 54,0762021 805,000 1,487,505 (488,348) 1,804,157 1,652,750 151,407 2022 1,000,000 1,453,695 (477,248) 1,976,447 1,821,250 155,197 2023 1,030,000 1,409,695 (462,803) 1,976,892 1,825,000 151,892 2024 1,060,000 1,362,315 (447,248) 1,975,067 1,821,750 153,317 2025 1,095,000 1,311,965 (430,718) 1,976,247 1,821,750 154,497 2026 1,125,000 1,258,310 (413,103) 1,970,207 1,819,750 150,457 2027 1,165,000 1,200,935 (394,267) 1,971,668 1,820,750 150,918 2028 1,205,000 1,139,773 (374,187) 1,970,586 1,819,500 151,086 2029 1,245,000 1,074,703 (352,825) 1,966,878 1,816,000 150,878 2030 1,290,000 1,006,228 (330,344) 1,965,884 1,815,250 150,634 2031 1,340,000 934,633 (306,840) 1,967,793 1,817,000 150,793 2032 1,390,000 859,593 (282,204) 1,967,389 1,816,000 151,389 2033 1,440,000 777,930 (255,394) 1,962,536 1,807,250 155,286 2034 1,495,000 693,330 (227,620) 1,960,710 1,806,000 154,710 2035 1,555,000 605,499 (198,785) 1,961,714 1,806,750 154,964 2036 1,610,000 514,143 (168,793) 1,955,350 1,804,250 151,100 2037 1,675,000 419,555 (137,740) 1,956,815 1,803,500 153,315 2038 1,735,000 320,730 (105,296) 1,950,434 1,799,250 151,184 2039 1,800,000 218,365 (71,689) 1,946,676 1,791,500 155,176 2040 1,870,000 111,265 (36,528) 1,944,737 1,790,250 154,487

26,930,000$ 19,647,672$ (6,466,022)$ 40,111,650$ 37,004,888$ 3,106,762$

2,590,211$ 9.62%

Sources:Bond Par Amount $22,455,000Reoffering Premium 5,944,392

$28,399,392Uses:Refunding Escrow Deposit $28,064,308Underwriter Discount 224,550Costs of Issuance 106,341Rounding 4,193

$28,399,392

City of Kirkland, WashingtonLimited Tax General Obligation Bonds, 2010 (Taxable Build America Bonds)

Refunding Analysis

Prior Debt Service Advance Refunding

NPV SavingsNPV % Savings

Attachment AE-

pfm

City of Kirkland Debt Management Policy

September 1, 2010

H:\FINANCE\Z Administrative\Policies & Procedures (Until no longer needed then trans to State\Debt Policy\Debt Policy 2010 FINAL C.docx Page 1 of 5

The Debt Policy for the City of Kirkland (City) is established to help ensure that all debt is issued both prudently and cost effectively. The Debt Policy sets forth guidelines for the issuance and management of all financings of the City. Adherence to the policy is essential to ensure that the City maintains a sound debt position and protects the credit quality of its obligations while providing flexibility and preserving financial stability.

1.0 Uses of Debt

1.1 City of Kirkland uses debt as a mechanism to equalize the costs of needed capital improvements for the benefit of both present and future citizens;

1.2 City of Kirkland uses debt as a mechanism to reduce the immediate costs of substantial public improvements.

1.3 The City of Kirkland will not use long-term debt to support current operations.

1.4 Long-term borrowing will only be used for capital improvements that cannot be financed from current revenues.

1.5 Non-capital furnishings, supplies, and personnel will not be financed from bond proceeds.

1.6 Interest, operating, and/or maintenance expenses will be capitalized only for enterprise activities; and will be strictly limited to those expenses incurred prior to actual operation of the facilities.

2.0 Debt Limits

2.1 Legal Limits:

2.1.1 The general obligation debt of Kirkland will not exceed an aggregated total of 7.5% of the assessed valuation of the taxable property within the City. RCW 39.36.020

2.1.2 The following individual percentages shall not be exceeded in any specific debt category: General Debt - 2.5% of assessed valuation

Non-Voted 1.5% Limited Tax General Obligation (LTGO) Bonds Voted 1.0% Unlimited Tax General Obligation (UTGO) Bonds

Utility Debt - 2.5% of assessed valuation Open Space and Park Facilities - 2.5% of assessed valuation

2.2 Public Policy Limits:

2.2.1 The City will establish and implement a comprehensive multi-year Capital Improvement Program (CIP).

2.2.2 Financial analysis of funding sources will be conducted for all proposed capital improvement projects.

2.2.3 Debt will be issued in accordance with the CIP as necessary.

2.2.4 Where borrowing is recommended, the source of funds to cover debt service requirements must be identified.

Attachment BE-


September 1, 2010


2.2.5 The City, as determined by the City Council, may consider using long term debt toward public improvements, which have an identified public benefit to the City, associated with economic development to the extent that new revenues from the project, in excess of those identified by the City Council for other City purposes can be agreed upon to support the debt service.

2.3 Financial Limits:

2.3.1 The City’s policy is to plan and direct the use of debt so that debt service payments will be a predictable and manageable part of the Operating Budget.

2.3.2 The City will conduct a debt affordability analysis to evaluate the City’s ability to support

debt. The analysis will review available resources for the amount of debt the City can initiate each year, and project the effects of that financing through six years of the CIP.

3.0 Allowable Types of Debt

3.1 Short Term Obligations: Short-term borrowing will only be used to meet the immediate financing

needs of a project for which long-term financing has been secured but not yet received. The City may issue interfund loans rather than outside debt instruments to meet short-term cash flow needs. Interfund loans will be permitted only if an analysis of the affected fund indicates excess funds are available and the use of the funds will not impact the fund’s current operations. All interfund loans will be subject to Council approval, will bear interest based upon prevailing rates and have terms consistent with state guidelines for interfund loans.

3.2 Assessment/ LID Bonds: Assessment bonds will be considered in place of general obligation bonds,

where possible, to assure the greatest degree of public equity. Local Improvement District (LID) Bonds represent debt that is repaid by the property owners who benefited from the capital improvement through annual assessments paid to the City. LID’s are formed by the City Council after a majority of property owners agree to the assessment.

3.3 General Obligation Bonds Limited Tax: General Obligation debt is backed by the full faith and credit

of the City and is payable from General Fund revenues and taxes collected by the City. Limited Tax General Obligation (LTGO) Bonds can be issued with the approval of the City Council and will only be issued if:

A project requires funding not available from alternative sources; Matching fund monies are available which may be lost if not applied for in a timely manner; or Emergency conditions exist.

3.4 General Obligation Bonds Unlimited Tax: Unlimited Tax General Obligation (UTGO) Bonds are payable from excess tax levies and is subject to voter approval by 60% of the voters.

3.5 Revenue Bonds: Revenue bonds are used to finance construction or improvements to facilities of enterprise systems operated by the City in accordance with the Capital Improvement Program and are generally payable from the enterprise. No taxing power or general fund pledge is provided as security. Unlike general obligation bonds, revenue bonds are not subject to the City’s statutory debt limitation nor is voter approval required.

3.6 Leases: Lease purchase or financing contracts are payment obligations that represent principal and interest components which are general obligations of the City.

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September 1, 2010


3.7 Other Loan Programs:

3.7.1 Public Works Trust Fund Loans are loans from the Public Works Board, authorized by state statute, RCW 43.155 to loan money to repair, replace, or create domestic water systems, sanitary sewer systems, storm sewer systems, roads, streets, solid waste and recycling facilities, and bridges.

3.7.2 The Local Option Capital Asset Lending (LOCAL) Program is a financing contract with the

Office of the State Treasurer under RCW 39.94. It is an expanded version of the state agency lease/purchase program that allows pooling funding needs into larger offerings of securities. This program allows local government agencies the ability to finance equipment needs through the State Treasurer’s office, subject to existing debt limitations and financial consideration.

3.7.3 Other state funded programs.

3.8 Alternative types of debt: No variable-rate debt or derivative products shall be utilized.

4.0 Debt Structuring Practices 4.1 Maximum term, Payback Period and Average maturity:

4.1.1 The issuance of bonds shall be financed for a period not to exceed a conservative estimate of

the asset's useful life with the average life of the bonds less than or equal to the average life of the assets being financed.

4.1.2 General Obligation bonds will be issued with maturities of 30 years or less unless otherwise

approved by Council. 4.1.3 The maturity of all assessment bonds shall not exceed statutory limitations. RCW 36.83.050.

4.2 Debt Service Structure:

4.2.1 Unless otherwise justified and deemed necessary, debt service should be structured on a level or declining repayment basis.

4.3 Criteria for issuance of advance refunding and current refunding bonds

4.3.1 The City will use refunding bonds, where appropriate, when restructuring its current outstanding debt. A debt refunding is a refinance of debt typically done to take advantage of lower interest rates. Unless otherwise justified, such as a desire to remove or change a bond covenant, a debt refunding will not be pursued without a sufficient net present value benefit after expenses.

4.4 Other structuring practices:

4.4.1 Bond amortization schedules will be structured to minimize interest expense with the constraints of revenues available for debt service. The bonds should include call features to maximize the City’s ability to advance refund or retire the debt early. However, call features should be balanced with market conditions to ensure that the total cost of the financing is not adversely affected.

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September 1, 2010


5.0 Debt Issuance Practices

5.1 Council Approval: City Council approval is required prior to the issuance of debt.

5.2 Analytical Review: An analytical review shall be conducted prior to the issuance of debt including, but not limited to, monitoring of market opportunities and structuring and pricing of the debt.

5.3 Use of credit ratings, minimum bond ratings, determination of the number of ratings and selection of rating services: The City will continually strive to maintain its bond rating by improving financial policies, budget, forecasts and the financial health of the City so its borrowing costs are minimized and its access to credit is preserved. The City will maintain good communication with bond rating agencies about its financial condition, coordinating meetings, and presentations in conjunction with a new issuance as necessary.

5.4 Compliance with Statutes and Regulations: The Finance Director, City Attorney and bond counsel

shall coordinate their activities and review all debt issuance to ensure that all securities are issued in compliance with legal and regulatory requirements by the State of Washington and the Federal Government’s laws, rules and regulations.

5.5 Selection and use of professional service providers:

5.5.1 The City’s Finance and Administration Department shall be responsible for the solicitation and selection of professional services that are required to administer the City’s debt program.

5.5.2 Bond Counsel: All debt issued by the City will include a written opinion by bond counsel

affirming that the City is authorized to issue the proposed debt. The opinion shall include confirmation that the City has met all city and state constitutional and statutory requirements necessary for issuance, a determination of the proprosed debt’s federal income tax status and any other components necessary for the proposed debt.

5.5.3 Financial Advisor: A Financial Advisor(s) may be used to assist in the issuance of the City’s

debt. The Financial Advisor will provide the City with the objective advice and analysis on debt issuance. This includes, but is not limited to, monitoring of market opportunities, structuring and pricing of debt, and preparing official statements of disclosure.

5.5.4 Underwriters: An Underwriter(s) will be used for all debt issued in a negotiated or private

placement sale method. The Underwriter is responsible for purchasing negotiated or private placement debt and reselling the debt to investors.

5.5.5 Fiscal Agent: A Fiscal Agent will be used to provide accurate and timely securities processing

and timely payment to bondholders. In accordance with RCW 43.80, the City will use the Fiscal Agent that is appointed by the State.

5.6 Criteria for determining sales method and investment of proceeds:

5.6.1 The Director of Finance and Administration shall determine the method of sale best suited for each issue of debt.

5.6.2 The City will generally issue its debt through a competitive process. For any competitive sale of debt, the City will award the issue to the underwriter offering to buy the bonds at a price and interest rates that provides the lowest True Interest Cost (TIC).

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5.6.3 The City will provide for the sale of debt by negotiating the terms and conditions of sale when necessary to minimize the cost and risks of borrowing under the following conditions: i. The bond issue is, or contains, a refinancing that is dependent on market/interest rate

timing. ii. At the time of issuance, the interest rate environment or economic factors that affect

the bond issue are volatile. iii. The nature of the debt is unique and requires particular skills from the underwriter(s)

involved. iv. The debt issued is bound by a compressed time line due to extenuating circumstances

such that time is of the essence and a competitive process cannot be accomplished. 5.7 Bond Insurance: For each issue, the City will evaluate the costs and benefits of bond insurance or

other credit enhancements. Any credit enhancement purchases by the City shall be competitively procured.

6.0 Debt Management Practices

6.1 Investment of Bond Proceeds

The City shall comply with all applicable Federal, State and contractual restrictions regarding the investment of bond proceeds, including City of Kirkland Investment Policy.

6.2 Continuing Disclosure The City shall provide annual disclosure information to established national information repositories and maintain compliance with disclosure statements as required by state and national regulatory bodies. Disclosure shall take the form of the Comprehensive Annual Financial Report (CAFR) unless information is required by a particular bond issue that is not necessarily contained within the CAFR.

6.3 Arbitrage Rebate monitoring and filing The City will, unless otherwise justified, use bond proceeds within the established time frame pursuant to the bond ordinance, contract or other documents to avoid arbitrage. Arbitrage is the interest earned on the investment of the bond proceeds above the interest paid on the debt. If arbitrage occurs, the City will follow a policy of full compliance with all arbitrage rebate requirements of the federal tax code and Internal Revenue Service regulations, and will perform (internally or by contract consultants) arbitrage rebate calculations for each issue subject to rebate. All necessary rebates will be filed and paid when due in order to preserve the tax-exempt status of the outstanding debt.

6.4 Federal and state law compliance practices Discussed in Debt Issuance Practices sections 5.3 and 5.4 and Debt Management Practices sections 6.1 and 6.3.

6.5 Market and investor relations efforts The City shall endeavor to maintain a positive relationship with the investment community. The City shall communicate through its published Biennial Budget, Capital Improvement Program and Comprehensive Annual Financial Statements the City’s indebtedness as well as its future financial plans.

6.6 Periodic review The City’s debt policy shall be adopted by City Council. The policy shall be reviewed every four years by the Council Finance Committee and modifications shall be submitted to and approved by City Council.

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KIRKLAND CITY COUNCIL SPECIAL MEETING MINUTES December 10, 2019

1. CALL TO ORDER

Mayor Sweet called the study session to order at 6 p.m. and called the regular meetingto order at 7:35 p.m.

2. ROLL CALL

ROLL CALL:Members Present: Deputy Mayor Jay Arnold, Councilmember Dave Asher,

Councilmember Neal Black, Councilmember Tom Neir, Councilmember Toby Nixon, Councilmember Jon Pascal, and Mayor Penny Sweet.

Members Absent: None.

3. EXECUTIVE SESSION

a. To Review the Performance of a Public Employee

b. To Discuss Potential Property Acquisition

Mayor Sweet announced that the Council would enter into executive session todiscuss the performance of a public employee and potential property acquisitionand would return to the meeting at 7:30 p.m.; at 7:30 City Clerk Kathi Andersonannounced that Council would require an additional five minutes, and wouldreturn at 7:35 p.m., which they did. Also attending the executive sessions wereCity Attorney Kevin Raymond, Human Resources Director Chris Thomas, CityManager Kurt Triplett, Deputy City Manager Tracey Dunlap, Public WorksDirector Kathy Brown, and Councilmember Elect Kelli Curtis.

4. OATH OF OFFICE

a. Councilmember Neal Black

Municipal Court Judge Michael Lambo administered the Oath of Office to newCity Councilmember Neal Black.

5. MUNICIPAL COURT JUDGE CONFIRMATION

a. Resolution R-5407, Confirming the Appointment of John R. Olson to Fill aVacancy in the Position of Presiding Judge of the Kirkland Municipal Court for theRemainder of the Unexpired Term

Council Meeting: 1/7/2020Agenda: Approval of Minutes Item #: 10. a. (1)

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Motion to Approve Resolution R-5407, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KIRKLAND CONFIRMING THE APPOINTMENT OF JOHN R. OLSON TO FILL A VACANCY IN THE POSITION OF PRESIDING JUDGE OF THE KIRKLAND MUNICIPAL COURT FOR THE REMAINDER OF THE UNEXPIRED TERM." Moved by Councilmember Toby Nixon, seconded by Deputy Mayor Jay Arnold Vote: Motion carried 7-0 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Toby Nixon, Councilmember Jon Pascal, and Mayor Penny Sweet. Following the vote, Municipal Court Judge Michael Lambo administered newly confirmed Municipal Judge John Olson's oath of office.

6. COMMUNICATIONS

a. Announcements

(1) Lake Washington High School Kangaroos Girls Soccer Team Proclamation

Coach Ashton Staudacher and the Lake Washington High School Kangaroos girls soccer team accepted the proclamation from Mayor Sweet and Councilmember Pascal.

(2) Finn Hill Neighborhood Association Juanita Heights Park Donation

Scott Morris and Bill Blanchard from the Finn Hill Neighborhood Alliance presented the final donation of $12,500 for the purchase of property adjoining Juanita Heights Park. The initial funding source for the City's acquisition of the property was REET 1 Reserves. One half ($50,000) of the purchase price was reimbursed through a grant awarded by King County's Conservation Futures Tax (CFT) Grant Match Program. The other one half ($50,000) was reimbursed by the Finn Hill Neighborhood Alliance (FHNA) through a pledged contribution.

b. Items from the Audience

Bill Blanchard Teresa Chilelli-White Audrey Arnold Josiah Dillard Liam Sweeney

c. Petitions

7. PUBLIC HEARINGS

a. Reasonable Use Amendments Adoption

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Mayor Sweet described the parameters and opened the public hearing. Planning and Building Director Adam Weinstein provided an overview of the process and amendments for Council consideration. Testimony was provided by John Kappler; no further testimony was offered and the Mayor closed the hearing.

(1) Ordinance O-4713, Relating to Zoning and Land Use and Amending

Ordinance 4551, City of Kirkland Zoning Code 90.30 and 90.180 Regarding Reasonable Use Exceptions, and Approving a Summary for Publication, File No. CAM19-00690

Motion to Approve Ordinance O-4713, entitled "AN ORDINANCE OF THE CITY OF KIRKLAND RELATING TO ZONING AND LAND USE AND AMENDING ORDINANCE 4551, CITY OF KIRKLAND ZONING CODE 90.30 and 90.180 REGARDING REASONABLE USE EXCEPTIONS, AND APPROVING SUMMARY FOR PUBLICATION, FILE NO. CAM19-00690." Moved by Councilmember Dave Asher, seconded by Councilmember Tom Neir Vote: Motion carried 6-1 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Jon Pascal, and Mayor Penny Sweet. No: Councilmember Toby Nixon. Motion to Amend Ordinance O-4713, by inserting "substantial" at line 69 so that it reads, "provided that any such application shall be substantial complete pursuant to KZC 145.17". Moved by Councilmember Dave Asher, seconded by Deputy Mayor Jay Arnold Vote: Motion carried 7-0 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Toby Nixon, Councilmember Jon Pascal, and Mayor Penny Sweet.

8. SPECIAL PRESENTATIONS

a. King County Metro RapidRide K-Line

Kirkland Transportation Planner Kimberly Scrivner introduced King County Project Manager Vic Stover and Transportation Planner Grace Carlson, who provided a briefing about the planned RapidRide project. Motion to Authorize the Mayor to sign the amended draft comment letter. Moved by Deputy Mayor Jay Arnold, seconded by Councilmember Jon Pascal Vote: Motion carried 7-0 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Toby Nixon, Councilmember Jon Pascal, and Mayor Penny Sweet.

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b. Implicit Bias Training Update

Human Resources Director Chris Thomas and Assistant City Manager James Lopez provided a review of the training and progress to date, and next steps.

9. CONSENT CALENDAR

a. Approval of Minutes

(1) November 19, 2019

b. Audit of Accounts and Payment of Bills and Payroll

CAB2019 check #s 709349 – 709452 wire #129 LBB21A wire #131 CAB2119 check # 709453 CAB2519 check # 709454 CAB2719 check # 709455 – 709614 wire # 133 LBB27B wire # 130, 132 CAC0419 check #709615 – 709723 wire # 134, 135 PCard ACH

c. General Correspondence

d. Claims

(1) Claims for Damages

Claims received from Andrew and Karolina Cox and Jenny Li were acknowledged via approval of the consent calendar.

e. Award of Bids

(1) Juanita Beach Bathhouse Replacement Project

Council awarded the construction contract for the Juanita Bathhouse Replacement Project to Synergy Inc., of Woodinville, Washington, in the amount of $2,395,000.00 via approval of the consent calendar.

f. Acceptance of Public Improvements and Establishing Lien Period

g. Approval of Agreements

h. Other Items of Business

(1) Human Services Commission Resignation

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Council acknowledged Amy Falcone's resignation and approved the draft letter via approval of the consent calendar.

(2) Ordinance O-4709 and its Summary, entitled "AN ORDINANCE OF THE

CITY OF KIRKLAND ESTABLISHING THE AMOUNT OF PROPERTY TAXES TO BE LEVIED FOR THE YEAR 2020, THE SECOND YEAR OF THE CITY OF KIRKLAND'S 2019-2020 FISCAL BIENNIUM AND REPEALING ORDINANCE 4704."

The ordinance was approved via approval of the consent calendar.

(3) Resolution R-5406, entitled "A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF KIRKLAND AUTHORIZING THE MAYOR TO SIGN THE UPDATED VERSION OF THE KING COUNTY-CITIES CLIMATE COLLABORATION (K4C) JOINT LETTER OF COMMITMENT ON BEHALF OF THE CITY OF KIRKLAND."

this item was pulled for consideration under Business, item 10.e.

(4) Resolution R-5404, entitled "A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF KIRKLAND APPROVING AMENDMENTS TO SECTIONS 3.05, 3.25 AND 4.02 AND CHAPTER 7 OF THE KIRKLAND CITY COUNCIL POLICIES AND PROCEDURES RELATED TO ORDER OF BUSINESS, COUNCIL RETREATS AND COUNCIL COMMITTEES."

The resolution was approved via approval of the consent calendar.

(5) Procurement Report

Council acknowledged the report via approval of the consent calendar.

Motion to Approve the consent calendar with the exception of item 9.h.(3)., which was pulled for consideration under Business, item 10.e. Moved by Deputy Mayor Jay Arnold, seconded by Councilmember Jon Pascal Vote: Motion carried 7-0 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Toby Nixon, Councilmember Jon Pascal, and Mayor Penny Sweet.

Council recessed for a short break.

10. BUSINESS

a. Kirkland Urban Phase 3 Master Plan and Zoning Amendments

Senior Planner Scott Guter provided an overview of the proposed ordinances and responded to questions from the Council.

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(1) Ordinance O-4711 and its Summary, Relating to Planning and Land Use and Amending Title 3 of Kirkland Municipal Code, Chapter 3.30 Design Review Board, To Amend “Kirkland Parkplace Mixed-Used Development Master Plan and Design Guidelines” Which Are Adopted by Reference

Motion to Approve Ordinance O-4711 and its Summary, entitled "AN ORDINANCE OF THE CITY OF KIRKLAND RELATING TO PLANNING AND LAND USE AND AMENDING TITLE 3 OF THE KIRKLAND MUNICIPAL CODE, CHAPTER 3.30 DESIGN REVIEW BOARD, TO AMEND "KIRKLAND PARKPLACE MIXED-USE DEVELOPMENT MASTER PLAN AND DESIGN GUIDELINES" WHICH ARE ADOPTED BY REFERENCE." Moved by Councilmember Tom Neir, seconded by Councilmember Toby Nixon Vote: Motion carried 7-0 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Toby Nixon, Councilmember Jon Pascal, and Mayor Penny Sweet.

(2) Ordinance O-4712 and its Summary, Relating to Comprehensive Planning

and Land Use and Amending the Kirkland Zoning Code (Title 23 of the Kirkland Municipal Code), to Edit the CBD5A Zoning Text, File No. CAM14-02188

Motion to Approve Ordinance O-4712 and its Summary, entitled "AN ORDINANCE OF THE CITY OF KIRKLAND RELATING TO COMPREHENSIVE PLANNING AND LAND USE AND AMENDING THE KIRKLAND ZONING CODE (TITLE 23 OF THE KIRKLAND MUNICIPAL CODE), TO EDIT THE CBD5A ZONING TEXT (FILE NO. CAM14-02188)." Moved by Deputy Mayor Jay Arnold, seconded by Councilmember Toby Nixon Vote: Motion carried 7-0 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Toby Nixon, Councilmember Jon Pascal, and Mayor Penny Sweet.

b. Ordinance O-4708, Relating to Comprehensive Planning and Land Use and

Amending the Comprehensive Plan Ordinance 3481, as Amended, to Update Chapter XIII Capital Facilities, Chapter XI Transportation, Chapter XV.F Rose Hill Neighborhood, Chapter VI Land Use, and Chapter IV Community Character, and Approving a Summary for Publication, File No. CAM19-00537

Planning Supervisor Christian Geitz provided a brief overview of the amendments to the Comprehensive Plan detailed in Ordinance O-4708. Motion to Approve Ordinance O-4708, entitled "AN ORDINANCE OF THE CITY OF KIRKLAND RELATING TO COMPREHENSIVE PLANNING AND LAND USE AND AMENDING THE COMPREHENSIVE PLAN ORDINANCE 3481, AS AMENDED, TO UPDATE CHAPTER XIII CAPITAL FACILITIES, CHAPTER XI TRANSPORTATION,

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CHAPTER XV.F ROSE HILL NEIGHBORHOOD, CHAPTER VI LAND USE, AND CHAPTER IV COMMUNITY CHARACTER, AND APPROVING A SUMMARY FOR PUBLICATION, FILE NO. CAM19-00537." Moved by Councilmember Jon Pascal, seconded by Councilmember Tom Neir Vote: Motion carried 7-0 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Toby Nixon, Councilmember Jon Pascal, and Mayor Penny Sweet.

c. Ordinance O-4710 and its Summary, Amending the Biennial Budget for 2019-

2020

Deputy Director - Finance and Budget Sandi Hines provided an overview of the 2019-2020 Mid-Biennial Budget Adjustment. Motion to Approve Ordinance O-4710 and its Summary, entitled "AN ORDINANCE OF THE CITY OF KIRKLAND AMENDING THE BIENNIAL BUDGET FOR 2019-2020." Moved by Councilmember Jon Pascal, seconded by Councilmember Toby Nixon Vote: Motion carried 7-0 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Toby Nixon, Councilmember Jon Pascal, and Mayor Penny Sweet.

d. Resolution R-5405, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KIRKLAND ADOPTING UPDATES TO THE 2019-2024 SIX-YEAR CAPITAL IMPROVEMENT PROGRAM FOR THE CITY OF KIRKLAND."

Motion to Approve Resolution R-5405, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KIRKLAND ADOPTING UPDATES TO THE 2019-2024 SIX-YEAR CAPITAL IMPROVEMENT PROGRAM FOR THE CITY OF KIRKLAND." Moved by Councilmember Tom Neir, seconded by Councilmember Toby Nixon Vote: Motion carried 7-0 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Toby Nixon, Councilmember Jon Pascal, and Mayor Penny Sweet.

e. Resolution R-5406, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF KIRKLAND AUTHORIZING THE MAYOR TO SIGN THE UPDATED VERSION OF THE KING COUNTY-CITIES CLIMATE COLLABORATION (K4C) JOINT LETTER OF COMMITMENT ON BEHALF OF THE CITY OF KIRKLAND."

This item was pulled from the consent calendar, item 9.h.(3). Motion to Approve Resolution R-5406, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KIRKLAND AUTHORIZING THE MAYOR TO SIGN THE UPDATED VERSION OF THE KING COUNTY-CITIES CLIMATE COLLABORATION

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(K4C) JOINT LETTER OF COMMITMENT ON BEHALF OF THE CITY OF KIRKLAND." Moved by Deputy Mayor Jay Arnold, seconded by Councilmember Tom Neir Vote: Motion carried 6-1 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Jon Pascal, and Mayor Penny Sweet. No: Councilmember Toby Nixon.

11. REPORTS

a. City Council Regional and Committee Reports

Councilmembers shared information regarding the final King County Charter Review Commission meeting; the Association of Washington Cities Elected Officials Training; downtown Winterfest activities; the Parks Maintenance Center ribbon-cutting; the upcoming Sound Cities Association Public Issues Committee meeting; the upcoming East Metro Training Group Academy firefighter graduation; the upcoming Google Lights event on the Cross Kirkland Corridor; the upcoming Grand Menorah Lighting at Kirkland Marina Park; a King County Regional Law Safety & Justice Committee meeting; the upcoming Greater Kirkland Chamber of Commerce Annual Awards luncheon; the upcoming 12K's of Christmas run; Councilmember Pascal's appointment to the Washington State's Active Transportation Safety Advisory Council; an upcoming King County Mental Illness and Drug Dependency Advisory Committee meeting; the upcoming Nourishing Network food drive; several Puget Sound Regional Council Growth Management Policy Board special meetings; City Council Legislative Workgroup meetings with state legislators; the recent blood drive at City Hall; a Puget Sound Regional Council Executive Board meeting; and several City of Kirkland Community Safety Advisory Group meetings. The Councilmembers also took the opportunity to each say a few words of appreciation and recognition of outgoing Councilmember Tom Neir's and Councilmember Dave Asher's service on the City Council. Councilmember Asher was also presented with a version of the 1% For the Arts seal by the Council and staff in recognition of his 20 years of service on the Council. Motion to Appoint Councilmember Nixon as the City of Kirkland's voting member for the upcoming Sound Cities Association Public Issues Committee meeting on December 11, 2019. Moved by Deputy Mayor Jay Arnold, seconded by Councilmember Jon Pascal Vote: Motion carried 7-0 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Toby Nixon, Councilmember Jon Pascal, and Mayor Penny Sweet.

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b. City Manager Reports City Manager Kurt Triplett reported on the school safety camera program; the upcoming road closures on Totem Lake Boulevard; and recognized outgoing Public Works Director Kathy Brown.

(1) Calendar Update

c. Certificate of Recognition for Councilmember Asher

Mayor Penny Sweet read a Certificate of Recognition from the Metropolitan King County Council to acknowledge Councilmember Asher's years of service.

Motion to Suspend the Council rules to allow speakers under Items from the Audience after 10:00 p.m. for this meeting. Moved by Councilmember Toby Nixon, seconded by Councilmember Tom Neir Vote: Motion carried 7-0 Yes: Deputy Mayor Jay Arnold, Councilmember Dave Asher, Councilmember Neal Black, Councilmember Tom Neir, Councilmember Toby Nixon, Councilmember Jon Pascal, and Mayor Penny Sweet.

12. ITEMS FROM THE AUDIENCE

John Sambrook 13. ADJOURNMENT

The Kirkland City Council special meeting of December 10, 2019 was adjourned at 10:48 p.m.

Kathi Anderson, City Clerk Penny Sweet, Mayor

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CITY OF KIRKLAND Department of Finance and Administration 123 Fifth Avenue, Kirkland, WA 98033 425.587.3100 www.kirklandwa.gov

MEMORANDUM To: Kurt Triplett, City Manager From: Kathi Anderson, City Clerk Date: January 7, 2019 Subject: CLAIM(S) FOR DAMAGES RECOMMENDATION It is recommended that the City Council acknowledge receipt of the following Claim(s) for Damages and refer each claim to the proper department (risk management section) for disposition. POLICY IMPLICATIONS This is consistent with City policy and procedure and is in accordance with the requirements of state law (RCW 35.31.040). BACKGROUND DISCUSSION The City has received the following Claim(s) for Damages from:

(1) Evelyn Herrera-Lopez 11400 NE 132nd St. Apt. P-107 Kirkland, WA 98034 Amount: $21,000 Nature of Claim: Claimant states damages occurred to her personal vehicle when she entered an intersection with a green light and was struck by a City Fire engine using sirens.

(2) Shivali Sharma 9910 123rd LN NE Kirkland, WA 98033 Amount: $1,000 Nature of Claim: Claimant states damages occurred to her residential fence resulting from the placement of a road construction sign against it.

Council Meeting: 1/7/2020 Agenda: Claims for Damages Item #: 10. d. (1).

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(3) Michael Walzak 12641 NE 104th S Kirkland, WA 98033 Amount: $9,377.22 Nature of Claim: Claimant states damages occurred to his waterline resulting from new sidewalk construction.

Note: Names of Claimants are no longer listed on the Agenda since names are listed in the memo.

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CITY OF KIRKLAND Department of Finance & Administration 123 Fifth Avenue, Kirkland, WA 98033 425.587.3100 www.kirklandwa.gov

MEMORANDUM


From: Michael Olson, Director of Finance & Administration David Goldman, Deputy Director of Finance & Administration Shannon Olsen, Financial Planning Manager Ellen Sumargo, Accountant

Date: December 16, 2019

Subject: NOVEMBER SALES TAX REVENUE

This report was previously provided to the Finance Committee and is the first example of reports under “consent” that are now provided to all Councilmembers with the sunsetting of committees. November results reflect sales activity in September, due to the two-month lag in reporting sales tax data. Monthly sales tax revenue is 2.2 percent higher than November 2018. Most sector groups, particularly General Merchandise/Miscellaneous Retail and Services, performed better than last year. On the other hand, Contracting, Miscellaneous, and Communications declined. The following sections discuss the highlights by business sector of the month-over-month analysis and year-to-date revenue as well as key economic variables that impact sales tax.

Comparing November 2019 to November 2018

Comparing collections from the month of November this year and last year provides a better insight into business sector performance, controlling for seasonal cycles in sales, as well as occasional adjustments.

Comparing month-over-month growth, November overall sales tax collections this year are $48,233 (2.2 percent) higher than November 2018. This is the first time for General Merchandise/Miscellaneous Retail to be the strongest contributor in terms of dollar growth this year, rising by $30,568 (15.7 percent). Services came next, growing by $26,144 (9.1 percent). Wholesale, Retail

2018 2019 2018 2019Services 286,179 312,323 26,144 9.1% 13.1% 14.0% Contracting 617,562 592,814 (24,748) -4.0% 28.3% 26.6% Communications 46,155 41,155 (5,000) -10.8% 2.1% 1.8% Retail:

Auto/Gas Retail 397,130 403,155 6,025 1.5% 18.2% 18.1% Gen Merch/Misc Retail 194,563 225,131 30,568 15.7% 8.9% 10.1% Retail Eating/Drinking 149,858 164,895 15,037 10.0% 6.9% 7.4% Other Retail 265,160 275,870 10,710 4.0% 12.1% 12.4%

Wholesale 86,710 102,187 15,476 17.8% 4.0% 4.6% Miscellaneous 141,113 115,135 (25,979) -18.4% 6.5% 5.2% Total 2,184,430 2,232,664 48,233 2.2% 100% 100%

2019 Sales Tax Receipts by Business Sector-Monthly Actuals

Business Sector GroupNovember Dollar

ChangePercent Change

Percent of Total

Council Meeting: 1/7/2020 Agenda: Other Items of Business Item #: 10. h. (1)

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December 16, 2019 Page 2

Eating/Drinking, and Other Retail also showed increases, with Wholesale contributing 17.8 percent more than last year and was the highest percentage of growth among all sector groups. The last growing sector group was Auto/Gas Retail, which increased $6,025 (1.5 percent). In contrast to the trend from this year and last year, Contracting decreased $24,748 (4.0 percent). This sector group has almost always been the strongest contributor. This was the second decline since 2017. Nevertheless, this decline was offset by the increases from all former months, and had little effect the year-to-date growth, which will be discussed in the next section. Miscellaneous was down $25,979 (18.4 percent) that primarily came from a manufacturing company and a rental and leasing services company. Communications declined $5,000 (10.8 percent), continuing the downtrend from the last several months due to a combination of: innovation for smartphones has stagnated (creating a saturated market), lower cable prices, as well as the growing popularity of video streaming service alternatives. Year-to-Date Review

Year-to-date sales tax revenues are up 11.5 percent. Continuing the trend since August, all sectors are still exhibiting growth in the year-to-date comparison. Despite the small decline in the month-over-month comparison, Contracting remains the strongest contributor for the year, up $1,038,667 (20.7 percent) from last year. Services is the second highest contributor with an increase of $316,604 (11.2 percent) from the growth in Admin and Professional Scientific subsectors. General Merchandise/Miscellaneous Retail increased by $315,482 (14.6 percent) as a result of a business reclassification from Other Retail and additional revenues from the new internet sales tax that is growing more prominent this year. Miscellaneous also grew $288,373 (21.9 percent) primarily the result of a large audit payment from a rental and leasing services company, as well as from revenues in the “unknown” category. Communications rose $160,448 (31.8 percent) and remains the highest contributor in percent growth. Throughout the year, the revenue trend in this sector group is declining, yet, there was a significant audit payment earlier this year that has been offsetting the declines. Retail Eating/Drinking gained $139,803 (8.9 percent) as a result of new restaurant businesses as well as a large food service company that seem to be expanding its service this year. Wholesale, Other Retail, and Auto/Gas Retail also increased slightly for $88,992 (9.2 percent), $76,466 (2.7 percent), and $73,713 (1.6 percent) respectively.

Estimated Revenue Impact of Kirkland Urban and The Village at Totem Lake Redevelopment Since July 2016, Financial Planning has been monitoring revenues from Contracting businesses known to be working on the redevelopment projects at Kirkland Urban and The Village at Totem Lake. Sales tax

2018 2019 2018 2019Services 2,837,358 3,153,962 316,604 11.2% 13.0% 13.0% Contracting 5,016,907 6,055,575 1,038,667 20.7% 23.0% 25.0% Communications 504,535 664,983 160,448 31.8% 2.3% 2.7% Retail:

Auto/Gas Retail 4,601,603 4,675,316 73,713 1.6% 21.1% 19.3% Gen Merch/Misc Retail 2,162,128 2,477,610 315,482 14.6% 9.9% 10.2% Retail Eating/Drinking 1,573,854 1,713,657 139,803 8.9% 7.2% 7.1% Other Retail 2,788,486 2,864,952 76,466 2.7% 12.8% 11.8%

Wholesale 967,478 1,056,470 88,992 9.2% 4.4% 4.4% Miscellaneous 1,316,205 1,604,577 288,373 21.9% 6.0% 6.6% Total 21,768,554 24,267,102 2,498,548 11.5% 100% 100%

City of Kirkland Actual Sales Tax Receipts

Business Sector GroupYTD Dollar

ChangePercent Change

Percent of Total

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revenues through November 2019 from these projects, as shown by the following chart, have been a significant component of overall sales tax revenue growth.

From July 2016 to November 2019, the City has receipted over $3.5 million from companies known to be working on these large redevelopment projects. This represents over 19% of total collections from contracting over that period; however, this should be considered an approximation rather than a precise number, as this amount includes all activity from some contractors, even though some of their contributions may be from other locations within Kirkland. It also does not include sales tax from contracting firms that are only small contributors to these locations that are doing other work in Kirkland. The chart above also shows sales tax revenues from new businesses that have opened at The Village at Totem Lake. It is worth noting that for retailers with multiple locations in Kirkland, only a portion of their sales are allocated to the new businesses for the purpose of this chart.

National and Regional Economic Context

Information about wider trends in the economy provides a mechanism to help understand current results in Kirkland, as well as to predict future performance. The combination of consumer confidence, unemployment levels, housing data, inflation and auto sales provides a broader economic context for key factors in sales tax revenues. The table below includes the most recently available data and prior month’s readings, for some of the most relevant indicators.

Current Previous Change 2019 2018 Consumer Confidence

Consumer Confidence Index November Index 125.5 125.9 (0.4) 128.1 130.4 Unemployment Rate

National November % 3.5 3.6 (0.1) 3.7 3.9Washington State September % 4.1 4.5 (0.4) 4.6 4.5

King County September % 3.1 3.0 0.1 3.1 3.5Kirkland September % 2.9 2.9 0.0 3.0 3.3

Housing New House Permits September Thousands 47.5 42.2 5.3 46.8 44.4

Seattle Area Home Prices September Index 254.6 255.4 (0.8) 251.7 248.7 Inflat ion (CPI-W)

National November % Change 1.9 1.6 0.3 1.6 2.6Seattle October % Change 1.7 2.5 (0.8) 2.1 3.3

Car Sales New Vehicle Registrations October Thousands 23.5 23.2 0.3 23.8 25.0

2019 Wider Economic IndicatorsMonthIndicator Most Recent

Month of Data Unit Yearly Average

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~ 140

2! ill

120 :, 0 -" >-

100

80

60

40

20

Sales Tax Revenues from Contracting at the Village at Totem Lake and Kirkland and Sales Tax Revenues from New Businesses at these Locat ions

I I I I I I I I I I I I I I I I I I I I I I I ■ Contracting ■ New Business


The Conference Board Consumer Confidence Index went back down in November to 125.5 from 125.9 in October, which was a little jump from September. The national Unemployment Rate in November decreased slightly to 3.5 percent from 3.6 percent in October. Washington State unemployment fell to 4.1 percent in September after sitting at 4.5 percent for two months. Conversely, King County unemployment bounced back to 3.1 percent in September from 3.0 percent in August. Meanwhile Kirkland unemployment still sat at 2.9 percent in September. The New Housing Permits rose to 47,500 in September, up from 42,200 in August, which was a drop from the highest point in July. Despite declining to 254.60 in September from 255.40 in August, the Case-Shiller Home Price Index remains stably high and is 4.35 points more than at the same time last year, as reflected by the year-over-year gains in closed sales and prices. Inflation for Seattle-Tacoma-Bellevue, as measured by the CPI-W, went back down to 1.7 percent in October from 2.5 percent in August. It remains consistently higher than the national average mainly due to housing costs. Meanwhile on the national level, inflation rose again to 1.9 percent in November from 1.6 percent in October. So far, the rate is still below 2.0 percent year-to-date. There were 23,500 New Vehicle Registrations in October, back up from 23,200 in September that was also a drop from 23,500 in August. The current year average is more than 1,000 lower than last year.

Conclusion

The chart below shows Kirkland’s monthly sales tax revenues through November 2019 compared to the four prior years.

Contracting remains the most dominant driver in year-over-year growth, representing 41.5 percent of the total dollar growth by itself. In contrast however, this sector group had a month-over-month decline, which rarely occurs. At the same time, it was the smallest month-over-month growth for the year-to-date at 2.2 percent. Unlike the previous months, General Merchandise/Miscellaneous Retail was the month-over-month growth leader, contributing 63 percent to the total growth. Had there been no decline in Contracting, the month-over-month growth would have been 3.3 percent. All sectors combined, 2019 year-to-date revenues are 11.5 percent above those seen at the same time last year. Without the growth in Contracting, and the impact of audit payments from Communications and Miscellaneous, year-to-date growth would have been 4.6 percent.

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$2.8

$2.6

$2.4

$2.2

.,, $2.0 z

0 ::l $1.8 ~

$1.6

$1.4

$1.2

$1.0

Jan

2015-2019 Monthly Sales Tax Revenues

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

~ 2019

- 2018

~ 2017

- 2016

~ 2015

CITY OF KIRKLAND Department of Finance & Administration 123 Fifth Avenue, Kirkland, WA 98033 425.587.3100 www.kirklandwa.gov

MEMORANDUM


From: Greg Piland, Financial Operations Manager


Subject: REPORT ON PROCUREMENT ACTIVITIES FOR COUNCIL MEETING OF JANUARY 7, 2020

This report is provided to apprise the Council of recent and upcoming procurement activities where the cost is estimated or known to be in excess of $50,000. The “Process” column on the table indicates the process being used to determine the award of the contract.

The City’s major procurement activities initiated since the last report dated November 25, 2019 are as follows:

Project/Purchase Process Estimate/Price Status 1. Police patrol vehicle

replacement Cooperative Purchase

$50,235.81 Purchase order issued to Bud Clary, Inc. of Longview, WA.

2. Cloud storage capacity for the migration project

Cooperative Purchase

$299,124.94 Purchase order issued to Dell Marketing LP of Chicago, IL.

3. Panasonic Toughbook replacements for patrol vehicles

Cooperative Purchase

$134,517.98 Purchase order issued to Datec, Inc. of Seattle, WA.

4. Project management for web content management system replacement project

Direct Hire $52,800.00 Amended contract awarded to MTG Management Consultants LLC of Seattle, WA.

Please contact Greg Piland if you have any questions regarding this report.

Council Meeting: 1/7/2020 Agenda: Other Items of Business Item #: 10. h. (2)

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CITY OF KIRKLAND City Manager's Office 123 Fifth Avenue, Kirkland, WA 98033 425.587.3001 www.kirklandwa.gov

MEMORANDUM To: Kurt Triplett, City Manager From: Lorrie McKay, Intergovernmental Relations & Economic Development Manager Date: December 18, 2019 Subject: DRAFT 2020 STATE LEGISLATIVE SUPPORT ITEMS AGENDA RECOMMENDATION: It is recommended that the City Council reviews and considers for approval the City’s 2020 State Legislative Support Items Agenda (Attachment A). BACKGROUND DISCUSSION: The City’s State Legislative Agenda consists of three segments: general principles; top legislative “priorities;” and selected issues/items championed by allies, which the City may “support” (i.e., these are items that are important to the City but may not result in Councilmembers testifying in Olympia on the issues, but still include support efforts as discussed below). The 2020 legislative session is the second year of the biennium and it is a short, 60-day session that will begin on Monday, January 13 and end Friday, March 18. The City’s 2020 Legislative Priorities were amended and adopted at Council’s November 6, 2019 regular meeting. This memo only addresses the Legislative Support Items agenda. The Support Items agenda includes selected priority issues and items that are being championed by other, well-organized ally organizations and groups. The Legislative Support Items Agenda identifies issues that align with the Council goals, established city policies and the city’s legislative guiding principles. Adoption of the Support Items Agenda authorizes staff and the city’s advocacy consultants to take action in Olympia when associated legislation is heard in committee. Action includes monitoring, signing-in at hearings indicating a position/stance, submitting letters, etc. The City typically includes priorities from ally organizations in the following categories: Transportation Housing Human Services Environmental Water Public Safety Parks Open Government & Transparency Other Local Government/Jurisdictions

Council Meeting: 1/7/2020 Agenda: Business Item #: 11. a.

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During the process of adopting the City’s 2020 legislative priorities, Council supported the Legislative Workgroup’s recommendation to include the following two items from the City’s 2019 priorities agenda on the 2020 Support Items agenda.

• Support continued sustainable funding to maintain high-quality statewide training for law enforcement officers and corrections officers to ensure no waiting period to get law enforcement and corrections officers trained and in the field;

• Support gun safety measures that promote safe and responsible gun ownership and reduce gun violence, and that are consistent with the 2nd Amendment of the US Constitution and Article I Section 24 of the Washington State Constitution.

Safe and Responsible Gun Ownership and Reduced Gun Violence The gun safety language above, now proposed as part of the support agenda, is the same text that was included as a priority item for the 2019 legislative agenda. Kirkland Indivisible, a community advocacy group, has requested that the Council place the gun safety item back on the priority agenda. The staff original recommendation in October to place the item on the support agenda was a practical one based on the experience of the 2019 legislative session. In 2019, Kirkland was encouraged by legislators and advocates to support the efforts of statewide gun safety organizations such as the Alliance for Gun Responsibility, rather than seek individual Kirkland bills. The Alliance for Gun Responsibility’s 2020 legislative agenda is also included as part of Kirkland’s proposed support agenda. Kirkland Councilmembers who attended 2019 hearings were also unable to testify as hundreds of individuals advocating for gun safety signed up to speak. Kirkland did provide effective advocacy in other ways by supporting the statewide efforts, signing in for bills, and by repeatedly conveying to all nine Kirkland state legislators that this was a top priority of the City. The Legislative Workgroup has already highlighted the need for further gun safety measures and provided Kirkland’s language to our legislative delegation at each of the recently held legislative coffees. Staff has conveyed the reasons for moving gun safety to the support agenda to Kirkland Indivisible, both in meetings and through correspondence. If the Council wishes to change, it should provide direction to staff to bring back a revised priorities document for approval at the January 21 Council meeting. Regardless of whether the Council leaves the item on the support agenda or elects to place it back on the priority agenda, Kirkland will provide the same strong advocacy for gun safety measures during the 2020 legislative session. The City Council’s Legislative Workgroup The City Council’s Legislative Workgroup, consisting of Mayor Sweet, Deputy Mayor Arnold and Councilmember Curtis, is staffed by the City Manager and Lorrie McKay, the Intergovernmental Relations & Economic Development Manager, with participation from Waypoint Consulting Group, the City’s contracted lobbyist. Under the direction of Lorrie McKay, Management Analyst Andreana Campbell will also be supporting the Legislative Workgroup efforts during the short session. Deputy Mayor Arnold is the Chair the Legislative Workgroup, which guides the development of the City’s legislative priorities and activities. During session, the Workgroup meets weekly to track the status of the City’s priorities and it provides support and oversight of strategies for achieving the priorities. Following Council’s adoption of the City’s 2020 legislative priorities on November 6, the Legislative Workgroup scheduled its annual legislative coffees with the state delegation to review and discuss. At the drafting of this memo, the coffees are nearly completed.

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AWC’S ANNUAL CITY ACTION DAYS CONFERENCE (January 28-29): The Association of Washington Cities (AWC) will host its annual City Action Days on Tuesday, January 28 and Wednesday the 29. The AWC’s conference portion of the two-day event is being scheduled a little differently this year (See link to schedule at https://wacities.org/events-education/conferences/city-action-days/schedule). Staff is working with Councilmembers to identify individual and collective availability to participate in both the conference and in meetings with state delegation members. As councilmembers identify which conference sessions they wish to attend, staff is beginning to schedule meetings in Olympia with all nine members of the state delegation. In looking at the conference schedule, delegation meetings can be scheduled on Tuesday morning, beginning 8:30am and continuing through 1:30 pm, depending upon Councilmember preferences and availability. On Wednesday, depending upon what the AWC has planned for its 9am morning general session, delegation meetings could be scheduled to begin at about the same time. Otherwise, the remainder of the delegation meetings will be scheduled beginning at 11:30. Additional scheduling considerations during the conference include any hearings scheduled on the City’s priority bills, the AWC’s Tuesday afternoon legislative reception, and the Tuesday evening Eastside Cities Dinner. Attachments: Attachment A - DRAFT 2020 Legislative Support Items Attachment B - Ally Organizations’ Priorities Attachment C - AWC City Action Days Schedule (as of December 15, 2019)

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https://wacities.org/events-education/conferences/city-action-days/schedule






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DRAFT December 15, 2019

CITY OF KIRKLAND 2020 LEGISLATIVE SUPPORT AGENDA

Kirkland generally supports the policy principles of the items below, however, formal City support is contingent upon reviewing and approving the specific language of any legislative proposal drafted to advance a particular item. 2020 Legislative Support Select Legislative Support and carryovers from Kirkland’s past agendas • Support continued sustainable funding to maintain high-quality statewide training for law enforcement

officers and corrections officers to ensure no waiting period to get law enforcement and corrections officers trained and in the field.

• Support gun safety measures that promote safe and responsible gun ownership and reduce gun violence, and that are consistent with the 2nd Amendment of the US Constitution and Article I Section 24 of the Washington State Constitution.

• Supports full funding of the State Emergency Management Division. • Supports maintaining local flexibility in determining location, design and size of small cell

(telecommunication) deployment with adequate cost control. • Support the establishment and operation of a state-chartered, public cooperative bank in the state of

Washington • Support vested rights legislation that keeps predictability and certainty for local governments, real

estate developers and environmental and community advocates. • Support legislation to enable local funding sources for multi-benefit watershed projects. • Support updates to the Public Records Act that will create a path to predictability on fines for

jurisdictions that make good faith efforts to comply with records requests. • Support allowing both the state and local governments the option of replacing the property tax cap,

currently fixed at 1 percent, with a cap that is indexed to both population growth and inflation. • Support providing cities with financing options to support public/private partnerships.

Support for Infrastructure Funding o Establishment of a State-Chartered, Public Cooperative Bank o Safe Routes to Schools & Complete Streets Program Funding o Transportation Investment Board Funding (TIB) o Community Economic Revitalization Board (CERB) o Washington Wildlife and Recreation Program (WWRP) o Model Toxics Control Act (MTCA) o Regional Mobility Grant Funding Program - Preserve o Freight Mobility Strategic Investment Board Funding o Support Healthy & Sustainable Communities Initiative

Additionally, Kirkland supports selected priority items from the 2020 legislative agendas led by the following ally organizations:

Attachment AE-

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Association of Washington Cities

• Adopt a comprehensive city transportation package that provides new resources and options Cities are responsible for a significant share of the statewide transportation system and fund most of that responsibility out of local tax dollars. Cities struggle to meet the $1 billion gap in transportation maintenance and preservation costs. To meet these ever-expanding needs, the state must maintain existing and create new transportation specific revenue options for cities. The state must also work on a statewide transportation package that includes increased resources for city transportation needs.

• Fully fund the Public Works Trust Fund (PWTF)

The Public Works Trust Fund is a crucial funding partner in our efforts to provide the necessary infrastructure for our communities. We seek full funding for the program and ask the state to protect the current stream of loan repayments and uphold the 2% state share of REET dedicated to the account. Additionally, we look to strengthen the program by ending the ongoing revenue diversions as soon as possible.

• Create a tax increment financing (TIF) option for cities

Washington’s cities need economic development tools that help maintain, expand, and modernize local infrastructure to help spur local private sector investment. By investing in TIF, the Legislature can partner with cities and towns to advance our shared goals of building a robust and diverse economy for communities around the state. For maximum impact, cities need access to both property-tax and sales-tax based TIF programs.

• Preserve city fiscal health with secure funding sources

Cities need revenue authority and flexibility to keep up with community growth and increasing service needs. State investment in shared revenue distributions is instrumental to support essential programs and services. Responsive revenue options allow local elected officials to make the best community-based decisions about how to keep up with growth and the increasing costs of providing basic services like public safety and transportation. Arbitrary restrictions on local revenue decisions unnecessarily hurt residents by limiting critical local services.

• Support statewide medication assisted treatment (MAT) services in city and regional

jails with local flexibility Cities are experiencing the ramifications of an overwhelmed state behavioral health system. While the state has made investments to address some of the challenges, more help is needed. Local jails have increasingly been called to action to address opioid use disorder and provide treatment. However, the economic costs are overwhelming city criminal justice budgets across the state. City jails need additional state support to access MAT services to save lives and reduce recidivism.

• Advance a watershed-based strategic plan to address local fish-blocking culverts

along with state culverts Cities need the state to adopt a broader vision to create a comprehensive response that funds local barrier corrections and provides actual habitat access for fish. Cities recognize that the state is facing a $4 billion price tag to fix fish-blocking culverts that the U.S. Supreme Court has found to impinge on tribal treaty rights to fish harvests. Cities also own 1,300 barriers in the same streams, and similarly have no identified revenues to pay for needed corrections. A statewide approach is the only way to achieve meaningful salmon and orca recovery.

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• Continue to pursue new resources and policies to increase affordable housing both at the state and local level Our communities continue to face a housing crisis and need state support to incentivize housing options. The Legislature can help by proactively supporting cities’ voluntary adoption of more effective ADU ordinances and providing additional councilmanic tax authority for housing. Cities need enhanced tools to attract and preserve multifamily development, like changing the multifamily tax exemption program to open it to smaller cities, extending the tax exemption for continued affordability guarantees, and expanding the ability to preserve existing affordable housing.

Transportation Issues Transportation Choices Coalition

• I-976 Response Identify and seek legislative support to address the impacts and financial losses imposed by the passage of I-976. This may include addressing long-term, structural barriers to transportation funding. o Protect committed funds — Including Connecting Washington Multimodal Fund and Sound

Transit 3, ensuring we keep buses moving and provide lifeline services to those who most depend on it, including those with disabilities and in rural areas.

o Align transportation investments with state goals — Require transportation project lists to include a performance-driven analysis tied to Washington State climate, health, equity, and safety goals.

o Identify new and flexible transportation revenues Road Usage Charge — Develop framework for an equitable program that funds state

transportation priorities, including safety, environment, and health. Improve local funding — Remove two 10-year Transportation Benefit District limits and

expand revenue options.

Support innovative and progressive funds to help backfill gaps left by I-976.

• Automated traffic safety camera enforcement HB 1793/SB 5789 (“Don’t block the box, don’t block the bus”) would allow large cities to use traffic camera enforcement for transit lanes, zones, and crosswalks to improve safety and increase transit speed and reliability.

• Give public transit agencies flexibility with state-owned, funded, or leased Park &

Rides Seek legislation (SB 5673) to provide flexibility in the way transit agencies can manage customer usage of park and ride facilities, which are either owned by, funded by, or leased from the state.

• Support an Autonomous Vehicles Health Impact Assessment

• Support Washington State Ferries Orca LIFT pilot

• Transition to a clean and equitable transportation system

o Climate planning — Give power to MPOs or otherwise direct comprehensive planning requirements to include greenhouse gas reductions and plan for mitigation and adaptation.

o Cleaner vehicles and fuels to reduce environmental justice impacts — Support legislation such as SB 5811 and HB 1999 (reducing emissions by strengthening the clean car standards and clean car program) and HB 1110 and SB 5412 (reducing emissions associated with transportation fuels).

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o Strategic planning for electrification and transit investments — Develop a transition plan to a sustainable, low-emissions transportation system.

• Increase access to sustainable modes

o Commute Trip Reduction & Transportation Demand Management — Support and strengthen legacy and expanded demand management programming and policy.

o Support WSDOT I-5 Corridor Scenario Planning — HOV 3 and transit networks are top priorities.

o Ensure new transportation options support safety and complement transit investments — Center environment, health, equity, and safety in Autonomous Vehicle policy development; Improve privacy around trip data; protect against TNC (Uber/Lyft) preemption bills.

Eastside Transportation Partnership

No 2020 priorities available as of 12/15/19 Housing Issues Washington Low Income Housing Alliance

• Investing $10 Million into the Housing Trust Fund for preservation of affordable homes. Many currently affordable homes across Washington are at risk of being lost. An additional appropriation for the Housing Trust Fund in the state’s Supplemental Capital Budget would help save homes and prevent the displacement of people living in them. This would preserve affordable homes already subsidized but at risk of loss. Funds could be used for the preservation of all units at risk of loss, including USDA properties in rural communities and homes funded with Low Income Housing Tax Credits.

• Requiring a legitimate business reason to make someone move.

SHB 1656/Macri & 5733/Saldaña Currently in Washington State, landlords can end a month to month lease and make a tenant move without even telling the tenant why. This leaves a loophole in Washington’s fair housing laws and other legal protections for tenants. Additionally, the fear of getting a twenty-day no cause notice to move is a common reason tenants don’t assert their rights under the law. Landlords should not be able to make someone move unless they have a legitimate business reason and they should be required to provide more than twenty days’ notice. SHB 1656 would require a landlord to have a legitimate business reason to make someone move and require more than twenty days’ notice. The amended bill includes a variety of reasons similar to Seattle’s Just Cause Eviction Ordinance, but HB 1656 also applies to month to month tenancies.

• Requiring a move-in fee installment payment plan over a three-month period when a

tenant requests it. HB 1694/Morgan Moving costs, including first and last month’s rent, deposits, and fees can add up to thousands of dollars and is a major hurdle for people trying to transition out of homelessness. Allowing tenants a three-month payment plan to cover these move-in costs will help address this significant barrier.

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HB 1694 does not regulate fees, but it requires a landlord to accept a tenant’s request for a three-month payment plan for all the move in fees, deposit and first/last month’s rent.

• Creating a Real Estate Excise Tax exemption for selling to a nonprofit who acquires it

for affordable housing. The lack of properties available to develop multifamily housing and the inability to compete with for-profit developers to acquire existing properties is a significant issue facing nonprofit affordable housing developers across the state. Providing a Real Estate Excise Tax (REET) exemption when selling to a nonprofit or public housing authority for affordable housing will incentivize preserving or developing affordable homes. All sales or transfers of real property to a nonprofit entity, public development authority, or public housing authority would be exempt from the REET if the purchasing entity records a covenant requiring the property to be used for affordable housing.

• Eliminating the ABD shelter penalty.

The Aged, Blind, or Disabled (ABD) cash grant program serves extremely low-income people with disabilities who are in the process of applying for federal Supplemental Security Income (SSI) assistance. The ABD cash grant was dramatically cut from $339/month to $197/month during the Great Recession and the shelter penalty was implemented which lowers the cash grant even further to $120/month for an individual who is deemed to not have out-of-pocket housing expenses. The ABD cash grant is a critical resource for addressing basic needs and every ABD recipient should be able to access the full $197. This impacts about 15 percent of ABD recipients who are already struggling to make ends meet. While there is more work needed to increase the ABD cash grant, eliminating the shelter penalty is a common-sense step the legislature can take during a supplemental budget year to address the needs of an extremely low-income disabled population. The Operating budget impact for fiscal year 2021 is estimated to be $2.5 million.

• Fixing the property tax exemption for affordable rental housing for very low income

households. Nonprofit affordable housing is currently granted a property tax exemption under certain circumstances, but it needs to be adjusted to work with the needs of today’s affordable housing providers. If a tenant’s income increases — which it often can because affordable housing stabilizes lives and improves employment opportunities — housing providers can be required to pay the full property tax. This unpredictability drives funders to require significant up-front cash reserves which can significantly increase the cost of building affordable homes. This bill would adjust the initial target income of tenants from 50% of Area Median Income (AMI) and below, to 60% AMI and below to apply to more people. It would also eliminate the wildcard of future tax liability by allowing a tenant to increase their income without it triggering a tax liability for the property. Current law has this safeguard but limits it to properties of 10 units or less. This change would also require the apartment to be rented on vacancy to someone at 60% AMI or below. The Operating Budget impact is unknown, but likely very modest.

Housing Development Consortium

• Fund the State Housing Trust Fund & Expand Funding for Housing & Homelessness Services o Invest in a state revenue stream for preservation of affordable housing o Expand the State Property Tax Exemption qualification from 75 percent of units occupied by

households at 50 percent AMI and below to 75 percent of units occupied by households at 60 percent AMI and below

o Ensure that public dollars are used efficiently by pursuing measures that lower the costs of acquiring and/or rehabilitating affordable housing

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• Empower Local Governments to Address Their Constituents’ Affordable Housing Needs

o Give local governments councilmanic authority to pursue revenue options suited for their local housing needs

• Expand Homeownership Opportunities

o Homeownership is a driver of both personal and community wellbeing. Owning a home offers stability and enables a household to build wealth, yet this opportunity has been increasingly difficult for many as median home sale prices around Washington State have increased more than 60 percent since 2012, and by even greater amounts in areas of concentrated growth like King County. HDC supports efforts to further the promise of increasing homeownership opportunities for low-income communities.

• Progressively Increase Revenue to Fund Essential Services.

o Adopt an equitable and responsible budget that increases revenue progressively and expands vital human services

• Enact Reasonable Tenant Protections that Incorporate Broad Stakeholder Voice

o Ensure that tenants are not unfairly evicted o Ensure that people exiting the criminal justice system are not unfairly denied housing

Tacoma/Pierce Habitat for Humanity

• Amend RCW 84.52.105 RCW 84.52.105 allows jurisdictions to levy a voter-approved property tax (no more than $0.50 per $1,000 of assessed property value for no more than 10 years) for the production of affordable housing. The RCW currently limits the distribution of moneys raised to fund projects for households earning up to only 50% of the area median income (AMI). We recommend amending RCW 84.52.105 to allow the option for jurisdictions, which pass a voter approved affordable housing property tax levy, to distribute moneys raised to affordable homeownership and home repair programs serving households earning up to 80% of the local AMI.

• Infrastructure Funding for Housing Development

We recognize one of the primary impediments to housing and affordable housing development is the cost of development infrastructure. By addressing this issue and property resourcing local jurisdictions, the legislature could move the needle for low and modest income households. We continue our support for HB 1680, which would redeposit 4.1% of the Real Estate Excise tax into the Public Works Assistance Account (PWAA) and direct moneys collected for the next biennium to development infrastructure in support of housing development.

• HB 1590 w/ Amendment

We support HB 1590, which would give councilmanic authority to levy a 1/10th of 1% sales tax for affordable housing.

We also support an amendment to RCW 82.14.540, as a part of this legislation, to designate a new population service group to include households earning up to 80% of the area median income (AMI) participating in affordable homeownership programs.

• Incentives for Sellers of Land for Affordable Housing Development

We believe it’s important to provide affordable housing developers with a wide variety of opportunities to secured developable land. We support a Real Estate Excise tax (REET) exemption

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for the seller of real property to a non-profit organization for the purposes of housing and/or housing development for households earning up to 80% AMI.

Human Services Issues Eastside Human Services Forum DRAFT

• Cross Cutting Priorities o Increase funding levels for human services o Build agency capacity by increasing reimbursement rates through Medicaid, Social Security Act

4E and 4B, and Working Connections Child Care o Provide support for the work force including living wages and programs such as affordable

housing and child care o Increase coordination and funding for transportation to ensure equitable access

• Support Access to Basic Needs and Health Services o Support and expand access to flexible, accessible prevention and treatment for opioid and

other substance use disorders including services delivered on school campuses o Create community-based capacity to treat mental illness and drug dependency o Enact a Working Families Tax Rebate

• Make Homelessness Rare, Brief, and One-Time by Making Housing More Accessible

o Increase funding for Housing Essential Needs program and increase the value for housing vouchers for SSDI recipients in King County

o Continue to invest in the Housing Trust Fund and allow local communities to retain a portion of the state’s sales tax to invest directly into affordable home construction

o Continue eviction reform and require just cause to terminate tenancy

• Support Older Adults and People with Disabilities o Support legislation that will make medications more affordable and help employees save for

retirement o Continue support for Long-Term Care needs and increase funding where needed, such as

nursing homes and in-home case management services

• Strengthen Early Learning and Youth Services o Make child care and early learning accessible to all o Improve educational re-engagement programs and the GRADS program o Provide wrap-around supports for college students o Support the Child Support Pass Through

King County Behavioral Health

• The State should promote enhanced Integrated Managed Care (IMC) by encouraging local networks that incorporate locally-funded systems of social determinants of health. Washington should integrate IMC with regional approaches to state crisis services and locally-funded systems of social determinants of health to achieve whole person care.

• Establish robust accountability and transparency of Medicaid funding.

Washington should establish clear transparency in rate-setting to assure that Medicaid funding for community behavioral health care is clearly identified and enhanced, or maintained, in the integrated financing approach. The Health Care Authority, in partnership with counties, should

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also establish measures to monitor and mitigate for potential increases in crisis services. At a minimum, a maintenance-of-effort (MOE) funding level should be maintained and formally monitored for behavioral health care.

• Increase access to care by addressing workforce challenges and expanding

community-based behavioral treatment capacity with housing and supports. King County supports investments in safe and appropriate treatment options for care close to home. Community placements with integrated services and supports are essential to the stability of individuals with behavioral health conditions discharging from state and local hospitals.

Faith Action Network

No 2020 priorities available as of 12/15/19 Environmental Issues King County-Cities Climate Collaborative (K4C)

• Climate Policy o K4C supports comprehensive science-based limits and a market-based price on

carbon pollution and other greenhouse gases. Support a price on carbon based on best available science that reinvests a substantial

share of revenues in efforts to reduce greenhouse gas emissions (e.g., transit service, energy efficiency and renewable energy projects, forest protection and restoration), prioritize investments that benefit communities most impacted by climate change, and ensure a just transition for workers in fossil fuel industries.

Support policies that establish and use “cost of carbon” methods for analysis and decision-making.

Strengthen state climate change targets to align with the Department of Ecology’s 2016 recommendations which are complementary to K4C and Growth Management Planning Council adopted targets.

• Transportation and Land Use

o K4C supports comprehensive state policies and investments that reduce emissions from the transportation sector by reducing vehicle miles travelled, lowering the GHG intensity of fuels, and catalyzing investments in clean passenger, transit, and heavy-duty vehicles. K4C supports policies to focus growth inside the Urban Growth Area cities and centers well served by transit and other mobility options. Support, as part of a comprehensive strategy for reducing transportation-related

greenhouse gas emissions: Protection for and expansion of funding for public transit; Adoption of cleaner fuel standards; Incentives and investments for electrification of public and private fleets and lower

pollution from transportation fuels; Continued funding and expansion as in previous years of the Commute Trip Reduction

program and the Regional Mobility Grant program; Policies and incentives to support transit friendly development and easy connections in

vicinity of planned rail and high capacity transit and employment centers; Follow through on principles for the VW Funding Settlement developed by the Puget

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Sound Clean Air Agency in partnership with King County and several K4C partners

• Energy Supply o K4C supports existing state renewable energy commitments including the

Renewable Portfolio Standard and the Clean Energy Transformation Act that provide for 100% Clean electricity supply by 2045 by partnering with local utilities, state regulators and other stakeholders on a countywide commitment to clean energy resources. Support policies that meet our future energy needs through deep energy efficiency, grid modernization, and expanded renewable generation while phasing-out fossil fuels. Support a clear, articulated pathway for retirement of fossil fuel energy supplies that

protects ratepayers, creates jobs, supports a just transition, and maximizes replacement with new renewable resources.

Support changes in the utility Integrated Resource Planning process that promote equitable consideration of environmental and health benefits and greater emphasis on energy efficiency and demand management.

Support the Energy Independence Act (I-937) that requires increasing percentages of new energy load to be met by renewable sources other than hydropower. Washington State’s current renewable portfolio standard is currently at 9% of utility load, increasing to 15% by 2020 and years beyond.

Support distributed solar energy generation. Current state legislation limits the size of solar arrays that qualify for retail electricity rates and limits the ability to meet net zero energy goals for larger buildings and the cumulative generating capacity from these renewable energy systems. We support policy changes that would expand utility limits for these systems and allow for development of larger solar installations while considering both the benefits of increased distributed solar energy generation and ratepayer fairness.

• Green Building and Energy Efficiency

o K4C supports state policy changes and investments that will help us to reduce energy use in existing buildings 25% below 2012 levels by 2030, achieve net-zero GHG emissions in new buildings by 2030, and reduce fossil fuel use in buildings by 20% by 2030. Continue to strengthen our Washington State Energy code, leading the way to “net-zero

emissions” buildings by 2030. Support policies and new funding mechanisms to reduce energy use and save money for

King County residents and businesses. Support policies, tools and programs to reduce construction-related emissions, including

embodied carbon in construction materials. Provide State Department of Commerce grants to leverage energy efficiency and

renewable energy investments by local governments. People for Climate Action Kirkland

• A Clean Fuel Standard HB 1110/SB 5412

o Reducing the greenhouse gas (GHG) emissions associated with transportation fuels. Transportation fuels are responsible for nearly half of our global warming pollution in Washington. This bill requires oil refiners and importers to reduce the carbon intensity of transportation fuels by 10% by 2028 and a 20% by 2035.

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• Adoption of California ZEV (Zero Emission Vehicles) Standards

SB 5811/HB 1999 o Reducing emissions by making changes to the clean car standards and clean car program.

California is the only state allowed under the federal Clean Air Act to adopt state standards for vehicle emissions, however other states are allowed to match California’s standards. This bill authorizes Washington to match all of California’s requirements for automakers to make available for sale in Washington State, both a broad range and a certain percentage of Zero Emission Vehicles (ZEV’s). 10 states currently have adopted a ZEV standard, including our West Coast neighbors, California and Oregon.

• Rulemaking on Methane Emissions

HB 1597 o Incorporating comprehensive measurements of greenhouse gas (GHG) emissions from certain

fossil fuels into state environmental laws. Establishes a rule detailing the global warming impact of gas infrastructure/upstream methane pollution. Methane is such a powerful GHG that some have stated it is 87 times more damaging than carbon dioxide. This bill directs the Dept. of Ecology to establish a rule detailing the global warming impact of gas infrastructure, including new power plants. The Department of Ecology will manage the rulemaking process with a group that includes state agencies, local governments, affected communities, tribal nations, electric and gas utilizes, pipeline companies, academic and industry experts, environmental advocates and the general public. It authorizes the Department of Ecology to establish the rate at which methane (primary component of natural gas) leaks throughout the lifecycle process (from fracking at the wellhead to transporting, processing, storing and burning at power plants, LNG facilities, petrochemical facilities, homes and businesses). This leakage rate will apply to state and local permits for new gas projects and to assess the impacts of existing facilities. It would establish a rule to research and develop both a leakage rate and the global warming potential of methane (CH4) emissions. Rules about methane leakage accounting will help ensure gas-fired power plants aren’t built in transition to 100% clean energy.

• Commercial Buildings Efficiency Funding Bill

HB 1796/SB 5730 o Concerning commercial property assessed clean energy and resilience. (C-PACER Bill)

Commercial, Property Assessed Clean Energy & Resilience). Establishes low-cost, long-term funding for new and existing commercial, industrial, non-profit and multi-family building’s energy efficiency, renewable energy, water conservation, fire protection, seismic or flood readiness enhancements. Local government and local lenders would cooperate on loans secured by the property tax obligation, similar to a local improvement district. This debt does not appear as an obligation on the owner’s balance sheet and the repayment obligation stays with the property rather than the owner, when the building is sold. Many such loan programs do not require any money down. Loan payments are largely offset by lower utility bills and lower insurance premiums. More than 30 states have passed PACE legislation since it was developed in 2008. California was the first to pass it and has made nearly $3 Billion in PACE loans.

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Water Issues WRIA 8

• STATE POLICY LEGISLATION PRIORITIES o Support and explore opportunities to engage in developing legislation that seeks to provide

immunity from liability for entities that implement habitat restoration projects involving the placement of large wood.

o Track and support legislation that seeks to improve regulatory protections for areas that are important for salmon habitat, and oppose legislation that reduces regulatory protections for these areas.

o Track and participate in continued efforts to explore watershed-based and/or regional funding authorities to support multiple-benefit projects that address salmon habitat protection and restoration, water quality, stormwater management, and flood management.

• STATE SUPPLEMENTAL BUDGET PRIORITIES o Identify and support specific funding requests for priority projects identified in and/or

consistent with the WRIA 8 salmon recovery strategies. o Support state agency budget requests for monitoring salmon populations and for studies and

management of predation, disease, and other issues that affect WRIA 8 salmon populations. Cascade Water Alliance

• Wastewater Governance: Find solutions that enable utility agencies within the King County wastewater service area to have a voice and a vote in critical governance, rates, budgets, plans, etc. on measures that directly affect their customers

• PFOAs Measures: Work with affected utilities to coordinate on this critical issue and raise legislative awareness regarding allowable levels and potential remediation (*PFOA is short for perfluorooctanoic acid <also called C8>, a synthetic chemical compound that is used, along with PTFE, to manufacture certain fluoropolymer- and telomer-based consumer products, including nonstick pan coatings like Teflon)

• Affordability Measures: Consider statute language to allow utilities to address such issues

• Milfoil Prevention: Follow example of California and Oregon and restrict boater access to state waters without boat inspection

Public Safety Issues Washington Association of Sheriffs and Police Chiefs

No 2020 priorities available as of 12/15/19 Washington Fire Chiefs Association

• Stable funding & revenue for fire service agencies o In conjunction with other fire service partners, WFC supports legislation to allow for the

permanent imposition of a fire benefit service charge, subject to voter approval. o Working with other fire service partners, WFC supports passage of HB 1169 (Peterson/Griffey)

to clarify state law regarding cost reimbursement from insurance carriers for services and supplies used in the cleanup and removal of debris and hazardous substances that go beyond what taxpayers fund for fire department readiness.

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• Wildland Policy o Early deployment of mobilization resources – WFC supports legislation to allow for the early

deployment of resources in instances of known, forthcoming mobilizations, with the aim of engaging suppression efforts earlier.

o Adequate reimbursement for mobilization costs – WFC, in conjunction with local agencies, is exploring possible efforts to enable fire service jurisdictions sending resources for state-approved mobilization events to recover more of their actual cost for those resources, with the aim of mitigating local disincentives to sending needed resources for mobilization efforts.

o Wildland fire funding increase – WFC supports DNR’s funding request for additional investment in several key areas regarding wildland fire suppression and mitigation, which would lead to quicker response, increased prevention efforts, and better forest health practices.

• Volunteer FF Pension

o WFC is supporting an effort by the WSFFA/BVFF to increase the pension benefit for volunteer firefighters. HB 1912 (Blake) & SB 5892 (Mullet) have been introduced and would increase the base pension by $50, up to $350/month, for all current and future retirees; remove the cap of 25 pension payments; increase the annual pension fee from $60 to $90; and increase the annual disability fee from $30 to $50. There will be no increase in administrative costs to the agency.

• JATC Funding & Sustainability

o WFC, in conjunction with the WSCFF, supports a study to identify opportunities for improving the JATC program, which currently resides with the State Fire Marshal’s Office and is governed by LNI. The study would be led by the Washington State Board for Community & Technical Colleges, where many other apprenticeship programs are currently operated.

• Washington State Association of Fire Marshals’ Issues

o WFC supports WSAFM efforts on a number of legislative action items, including food truck safety, townhome fire safety, and adult family home (AFH) fire safety.

Alliance for Gun Responsibility

• Regulate Access to Ammunition and High-Capacity Magazines: Washington’s background check system helps ensure firearms do not make it into dangerous hands. However, we do not currently address access to ammunition and the high-capacity magazines that make semi-automatic weapons extraordinarily deadly. We should take steps to require background checks on all ammunition and magazine purchases and prohibit magazines that can carry more than 10 rounds.

• Address the Intersection of Alcohol and Firearm Violence: Emerging research shows a clear link between even a single driving under the influence (DUI) conviction and future violent acts. Today, our law prohibits firearms possession after a felony DUI. We can help keep guns out of crisis situations by adjusting our laws to temporarily restrict access to firearms after a second DUI conviction, while incentivizing treatment pathways and encouraging continued sobriety where appropriate by allowing for earlier restoration of firearms rights.

• Keep Kids Safe: Firearms are prohibited in K-12 schools across our state. But other places where our children gather to learn and play do not have similar protections. We can help keep our kids safe by extending the protections for K-12 schools to early learning centers, parks, and libraries across Washington.

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• Restore Local Authority: If local leaders determine there are events or places where firearms present a high risk, they should be able to act. Our state should allow local governments to put stronger laws into place when it is right for the community.

• Centralize Our Background Check System: In 2019, the Legislature passed HB 1949, directing the Office of Financial Management to study ways to centralize our state’s background check system. The Legislature should implement and fully fund the suggestions brought forward as a result of that study.

• Keep Confiscated Crime Guns Off The Street: Allowing the State Patrol to destroy

confiscated crime guns, rather than require them to auction or trade them will help keep dangerous crime guns out of our communities.

• Require Safety Training: Twenty-seven states and the District of Columbia require safety training before issuing a concealed pistol license; Washington is not one of these states. Updating our laws to include training requirements will help ensure people carrying concealed weapons know how to safely handle them.

• Community and Victim Protection: Washington continues to make tremendous strides to help ensure firearms are removed from dangerous people and crisis situations. As we implement these laws, there are additional ways to strengthen these provisions, including allowing access to important databases, aligning penalties for violations, clarifying procedures to restore firearm rights, ensuring concealed pistol licenses are removed at the same time as firearms, funding crime victims support with a surcharge on ammunition sales, and using best practices for surrender processes statewide.

• Support Community-Based Programs: Research on programs in cities like New York, Oakland, and Milwaukee continues to show the promise of holistic, community-based programs in preventing gun violence. Supporting programs like these in Washington will help interrupt and prevent gun violence.

• Require Reporting of Lost and Stolen Firearms: Our state should follow the example of a

growing number of cities in Washington and require owners to alert law enforcement that their weapon may now be on the black market within 48 hours of the weapon being lost or stolen.

• Require Law Enforcement Agencies to Participate in Firearms Tracing: Law enforcement agencies have a number of tools at their disposal to trace firearms from the point of sale to the crime scene, and to connect weapons to multiple crimes, but all too often these systems go unutilized. Implementing programs to overcome barriers to using these systems will help law enforcement agencies to use them statewide.

• Update Laws to Ensure Violent Individuals Are Prohibited from Purchasing Firearms: Illegal discharge, or display of a firearm and other crimes do not currently prohibit potentially dangerous individuals from purchasing and possessing firearms. This ought to be rectified. In addition, we should make the act of threatening to commit mass violence a crime that prohibits individuals from possessing firearms.

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Parks Issues Washington Recreation and Parks Association

• Provide Local Parks and Recreation Agencies with new Funding Options to Address Vital M&O and Preservation Needs and to Enhance Economic Development o (Policy/Fiscal Bill) Parks and recreation are outdoor, quality-of-life amenities that are highly

valued by the public. They offer activities that help us maintain physical health and well-being; protect open spaces and facilities that make our communities attractive and vibrant; they help to sell homes. Just as importantly, local parks and recreation programs enhance jobs-creation and economic development efforts and build trail networks that connect our communities. But investments in local parks and recreation suffered during the Great Recession and have lagged behind areas such as public safety in the years afterward. At the same time, a WRPA survey of parks agencies has shown a growing M&O deficit and backlog. WRPA will work with key lawmakers on a modified bill that is narrower than 2019 legislation authorizing the creation of Parks Benefit Districts. The 2020 bill will allow parks and recreation agencies to take a .1 percent sales tax increase to voters and bond against new sales tax proceeds upon voter approval. A few parks and recreation agencies have this authority, but the overwhelming majority – including all Metropolitan Park Districts (MPDs) and Park Districts – do not.

• Strongly Support $50,000 Allocation to Update Outdoor Recreation Sector Economic

Analysis o (Operating Budget) WRPA joins a broad-based coalition of organizations in urging the

Legislature to expend $50,000 to update the “Economic Analysis of Outdoor Recreation in Washington State” first released in January 2015. The initial report showed that the outdoor recreation sector generates $21.6 billion a year in economic activity, $12.5 billion in direct sales, and $4.7 billion in household wages. The study should be regularly refreshed and updated to give fiscal and policy decision-makers current information on the economic, social, health, and environmental benefits of the outdoor recreation sector.

• Protect Funding for Dedicated Accounts within the Capital Budget

o (Capital Budget) As the Legislature considers its 2020 Supplemental Capital Budget, WRPA urges lawmakers to refrain from diverting funding from dedicated accounts that are focused on funding outdoor recreation activities. Additionally, WRPA urges legislators to utilize the dedicated accounts for fund outdoor recreation programs and avoid the use of “bond backfill” that ends up putting funding in jeopardy and in competition with other critical construction projects. Dedicated accounts that are key to WRPA include the Washington Wildlife & Recreation Program (WWRP), Youth Athletic Facilities (YAF), and Aquatic Lands Enhancement Account (ALEA), as well as others including the Boating Facilities Program (BFP), Non-Highway Off-Road Vehicle Account (NOVA), and Land and Water Conservation Fund (LWCF). WRPA urges lawmakers to keep top-of-mind studies showing that the outdoor recreation sector generates nearly $22 billion a year in economic activity for the state, as well as 200,000+ jobs.

Open Government and Transparency Issues Washington Coalition for Open Government

No 2020 priorities available as of 12/15/19

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Other Jurisdictions’ Issues Lake Washington School District #414

• Academic Success o Special Education Programs and Services: The Office of the Superintendent of Public

Instruction (OSPI) estimated the cost of fully funding special education to be $308 million per year or $616 million per biennium. This would be needed on top of the approximately $3.3 billion allocated to the special education programs going forward. In the 2019 Session, the Legislature increased special education funding by changing the safety net program and increasing the excess cost multiplier. While the Legislature has made some progress, more work needs to be done. The special education funding shortfall forces school districts to either spend levy dollars on this essential component of basic education or risk being in violation of federal law.

• Well-Being o Social Emotional Learning: Students are most successful when their social-emotional,

mental, and physical needs are met at school. The Legislature needs to update the prototypical school model and provide more funding for counselors at all grade levels. The Legislature should work with districts on additional pilot programs that could help to promote social-emotional learning which enhances school safety.

• Effective Use of Resources o School Construction Funding: Rapid enrollment growth in the Puget Sound area and new

class size mandates have created significant demand for new school facilities. We also need changes to the school construction funding formula so that the state pays a fair share of the cost of building schools.

o Simple Majority for School Bonds: We need a constitutional amendment that authorizes

simple majority for school bonds.

• Excellent Staff o School Employees Benefits Board: In 2017, the Legislature created the School Employees

Benefits Board (SEBB). The goal was to bring all school employees in the state into one benefits pool and save money. There are a number of outstanding issues with the new program, including unfunded costs, coverage for substitutes, and ending program participation when premiums are not paid.

King County

No 2020 priorities fournd as of 12/15/19

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SCA 2020 Legislative Agenda • Address the Affordable Housing and Homelessness Crisis

The state and cities must partner to preserve and increase the supply of affordable housing as, well as address behavioral health needs and other root causes of homelessness. Sound Cities Association urges the Legislature to: o Allow cities to create and preserve affordable housing through optional local tools, including

extending the timeline to approve a “qualifying local tax” provided under HB 1406 adopted in the 2019 legislative session

o Continue to expand investment in the Housing Trust Fund o Address other underlying causes of homelessness by providing support to cities to implement

innovative local solutions and increasing investments in our state’s behavioral health system

• Invest in Transportation Infrastructure and Mobility The economic vitality of our state demands that we invest in our existing transportation infrastructure and prioritize new investments that improve the movement of people and goods. Cities have increased investments in local transportation systems, but still face an annual funding gap for maintenance and operation of those systems of $1 billion statewide. Sound Cities Association urges the Legislature to: o Partner with cities to develop a comprehensive transportation bill that provides new resources

and options for local government to address transportation and mobility needs

• Fully Fund the Public Works Trust Fund and Provide Options for Local Infrastructure Needs Today’s cities are building the infrastructure necessary to accommodate a growing population and economy. Investments in infrastructure keep communities vibrant, protect the environment, and attract economic development. Cities need tools to lower the cost of providing local infrastructure and to avoid further exacerbating the housing affordability crisis. Sound Cities Association urges the Legislature to: o Fully fund the Public Works Trust Fund o Support economic development tools that help maintain and expand local infrastructure, such

as Tax Increment Financing and similar tools

• Preserve Local Decision-Making Authority Cities possess strong local knowledge and authority to keep communities safe, healthy, and improve quality of life. It is critical cities maintain the authority to provide the necessary services and retain local control over land use planning that will help communities thrive.

• Provide the Tools for Cities to Address Local Priorities

City revenue streams are limited and are not structured to sustainably keep-up with rising costs. Cities need flexible local funding tools, fewer unfunded mandates, and continued support from the state for shared responsibilities. Sound Cities Association urges the Legislature to: o Replace the arbitrary 1% cap on annual property tax increases with a limit tied to inflation

plus population growth o Meet the state’s commitment to revenues intended to be shared with cities to serve our

shared constituents o Continue streamlined sales tax mitigation to affected cities

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Other Allies / Issues

Lake Washington Institute of Technology

• Support Washington Community and Technical Colleges 2020 Supplemental Capital Budget request, which would fund 25 projects at 23 colleges across the state. For the 2020 session, the Washington Community and Technical Colleges are requesting capital investments to modernize its aging campuses and ensure they provide excellent teaching and learning environments for their students. The capital investments to modernize their aging campuses and ensure they provide excellent teaching and learning environments for their students.

In the 21-23 biennium, Lake Washington Institute of Technology's (LWTech) community and technical college plans to request $31.5 M in capital budget funding for the construction of its Center for Design. The new facility will include state of the art classrooms and labs for our high-demand engineering, design, gaming, and software development associate and applied baccalaureate programs. This facility would also include much needed multipurpose space for college and community functions.

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Support statewide medication assisted treatment (MAT) services in city and regional jails with local flexibility Cities are experiencing the ramifications of an

overwhelmed state behavioral health system. While the state has made investments to address some of the challenges, more help is needed. Local jails have increasingly been called to action to address opioid use disorder and provide treatment. However, the economic costs are overwhelming city criminal justice budgets across the state. City jails need additional state support to access MAT services to save lives and reduce recidivism.

Advance a watershed-based strategic plan to address local fish-blocking culverts along with state culverts Cities need the state to adopt a broader vision to create a comprehensive response that funds local barrier corrections and provides actual

habitat access for fish. Cities recognize that the state is facing a $4 billion price tag to fix fish-blocking culverts that the U.S. Supreme Court has found to impinge on tribal treaty rights to fish harvests. Cities also own 1,300 barriers in the same streams, and similarly have no identified revenues to pay for needed corrections. A statewide approach is the only way to achieve meaningful salmon and orca recovery.

Continue to pursue new resources and policies to increase affordable housing both at the state and local level Our communities continue to face a housing

crisis and need state support to incentivize housing options. The Legislature can help by proactively supporting cities’ voluntary adoption of more effective ADU ordinances and providing additional councilmanic tax authority for housing. Cities need enhanced tools to attract and preserve multifamily development, like changing the multifamily tax exemption program to open it to smaller cities, extending the tax exemption for continued affordability guarantees, and expanding the ability to preserve existing affordable housing.

Adopt a comprehensive city transportation package that provides new resources and options Cities are responsible for a significant share

of the statewide transportation system and fund most of that responsibility out of local tax dollars. Cities struggle to meet the $1 billion gap in transportation maintenance and preservation costs. To meet these ever-expanding needs, the state must maintain existing and create new transportation-specific revenue options for cities. The state must also work on a statewide transportation package that includes increased resources for city transportation needs.

Fully fund the Public Works Trust Fund (PWTF) The Public Works Trust Fund is a crucial funding partner in our efforts to provide the necessary infrastructure for our communities. We seek full funding for the program and ask the state to protect the current stream of loan repayments

and uphold the 2% state share of REET dedicated to the account. Additionally, we look to strengthen the program by ending the ongoing revenue diversions as soon as possible.

Create a tax increment financing (TIF) option for cities Washington’s cities need economic development tools that help maintain, expand, and modernize local infrastructure to help spur local private

sector investment. By investing in TIF, the Legislature can partner with cities and towns to advance our shared goals of building a robust and diverse economy for communities around the state. For maximum impact, cities need access to both property-tax and sales-tax based TIF programs.

Preserve city fiscal health with secure funding sources Cities need revenue authority and flexibility to keep up with community growth and

increasing service needs. State investment in shared revenue distributions is instrumental to support essential programs and services. Responsive revenue options allow local elected officials to make the best community-based decisions about how to keep up with growth and the increasing costs of providing basic services like public safety and transportation. Arbitrary restrictions on local revenue decisions unnecessarily hurt residents by limiting critical local services.

Candice BockGovernment Relations Director [email protected] • 360.753.4137

09/27/19

Contact:Association of Washington Cities • 1076 Franklin St SE, Olympia, WA 98501 • 1.800.562.8981 • wacities.org

2020 Legislative Priorities

Attachment BE-

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• Protect committed funds — Including Connecting Washington Multimodal Fund and Sound Transit 3, ensuring we keep buses moving and provide lifeline services to those who most depend on it, including those with disabilities and in rural areas.

• Align transportation investments with state goals — Require transportation project lists to include a performance-driven analysis tied to Washington State climate, health, equity, and safety goals.

• Identify new and flexible transportation revenues

I-976 Response

2020 LEGISLATIVE PRIORITIES

Identify and seek legislative support to address the impacts and financial losses imposed by the passage of I-976. This may include addressing long-term, structural barriers to transportation funding.

• Road Usage Charge — Develop framework for an equitable program that funds state transportation priorities, including safety, environment, and health.

• Improve local funding — Remove two 10-year Transportation Benefit District limits and expand revenue options.

• Support innovative and progressive funds to help backfill gaps left by I-976.

Automated traffic safety camera enforcement

HB 1793/SB 5789 (“Don’t block the box, don’t block the bus”) would allow large cities to use traffic camera enforcement for transit lanes, zones, and crosswalks to improve safety and increase transit speed and reliability.

Give public transit agencies flexibility with state-owned, funded, or leased Park & Rides

Seek legislation (SB 5673) to provide flexibility in the way transit agencies can manage customer usage of park and ride facilities, which are either owned by, funded by, or leased from the state.

Support an Autonomous Vehicles Health Impact Assessment

Support Washington State Ferries Orca LIFT pilot

TRANSPORTATION CHOICES COALITIONAttachment BE-

~ Transportat1onCho1ces

:) transit for all

Bryce Yadon, Legislative Affairs, [email protected]

Contacts

Hester Serebrin, Policy Director, [email protected]

Kelsey Mesher, Advocacy Director, [email protected]

Front photo courtesy of Atomic Taco, used with a creative commons license.

1. Connect people to opportunity. We will prioritize equity and access to transit so that everyone can connect more easily to activities, services, and opportunities.

2. Implement essential transit improvements. We will ensure that policies and voter-approved transit expansions are effectively implemented to support access and foster equitable, healthy communities connected by great transit.

3. Lead the way toward progressive solutions. Great transit choices must be part of the answer to address pressing statewide challenges like population growth, affordable housing, and environmental stewardship.

4. Strengthen support for transit. Through our proven leadership, coalition building, and advocacy, we will leverage, amplify, and expand statewide support for thriving transit communities.

Our legislative agenda supports our strategic goals:

Mission: TCC is working to bring Washingtonians more and better transportation choices - real opportunities to take a bus, catch a train, ride a bike, or walk.

Transition to a clean and equitable transportation system

Increase access to sustainable modes

• Climate planning — Give power to MPOs or otherwise direct comprehensive planning requirements to include greenhouse gas reductions and plan for mitigation and adaptation.

• Cleaner vehicles and fuels to reduce environmental justice impacts— Support legislation such as SB 5811 and HB 1999 (reducing emissions by strengthening the clean car standards and clean car program) and HB 1110 and SB 5412 (reducing emissions associated with transportation fuels).

• Strategic planning for electrification and transit investments — Develop a transition plan to a sustainable, low-emissions transportation system.

• Commute Trip Reduction & Transportation Demand Management — Support and strengthen legacy and expanded demand management programming and policy.

• Support WSDOT I-5 Corridor Scenario Planning — HOV 3 and transit networks are top priorities.• Ensure new transportation options support safety and complement transit investments — Center

environment, health, equity, and safety in Autonomous Vehicle policy development; Improve privacy around trip data; protect against TNC (Uber/Lyft) preemption bills.

Attachment BE-

~ Transportat1onCho1ces a transit for all

For more information contact Michele Thomas, Washington Low Income Housing Alliance Director of Policy and Advocacy [email protected] or 206-245-6597

1

2020 Housing Alliance Lead and Support Agenda Current as of 11-19-19. *Additional Support Agenda items may be added prior to the 2020 State Legislative session

Lead agenda

Investing $10 Million into the Housing Trust Fund for preservation of affordable homes.

Many currently affordable homes across Washington are at risk of being lost. An additional appropriation for the Housing Trust Fund in the state’s Supplemental Capital Budget would help save homes and prevent the displacement of people living in them. More details: This would preserve affordable homes already subsidized but at risk of loss. Funds could be used for the preservation of all units at risk of loss, including USDA properties in rural communities and homes funded with Low Income Housing Tax Credits.

Requiring a legitimate business reason to make someone move. SHB 1656/Macri & 5733/Saldaña

Currently in Washington State, landlords can end a month to month lease and make a tenant move without even telling the tenant why. This leaves a loophole in Washington’s fair housing laws and other legal protections for tenants. Additionally, the fear of getting a twenty-day no cause notice to move is a common reason tenants don’t assert their rights under the law. Landlords should not be able to make someone move unless they have a legitimate business reason and they should be required to provide more than twenty-days notice. More details: SHB 1656 would require a landlord to have a legitimate business reason to make someone move and require more than twenty-days notice. The amended bill includes a variety of reasons similar to Seattle’s Just Cause Eviction Ordinance, but HB 1656 also applies to month to month tenancies.

Requiring a move-in fee installment payment plan over a three-month period when a tenant requests it. HB 1694/Morgan

Moving costs, including first and last month’s rent, deposits, and fees can add up to thousands of dollars and is a major hurdle for people trying to transition out of homelessness. Allowing tenants a three-month payment plan to cover these move-in costs will help address this significant barrier. More details: HB 1694 does not regulate fees, but it requires a landlord to accept a tenant’s request for a three-month payment plan for all the move in fees, deposit and first/last month’s rent.

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Housing Alliance


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Creating a Real Estate Excise Tax exemption for selling to a nonprofit who acquires it for affordable housing.

The lack of properties available to develop multifamily housing and the inability to compete with for-profit developers to acquire existing properties is a significant issue facing nonprofit affordable housing developers across the state. Providing a Real Estate Excise Tax (REET) exemption when selling to a nonprofit or public housing authority for affordable housing will incentivize preserving or developing affordable homes. More details: All sales or transfers of real property to a nonprofit entity, public development authority, or public housing authority would be exempt from the REET if the purchasing entity records a covenant requiring the property to be used for affordable housing.

Eliminating the ABD shelter penalty.

The Aged, Blind, or Disabled (ABD) cash grant program serves extremely low-income people with disabilities who are in the process of applying for federal Supplemental Security Income (SSI) assistance. The ABD cash grant was dramatically cut from $339/month to $197/month during the Great Recession and the shelter penalty was implemented which lowers the cash grant even further to $120/month for an individual who is deemed to not have out-of-pocket housing expenses. The ABD cash grant is a critical resource for addressing basic needs and every ABD recipient should be able to access the full $197. More details: This impacts about 15 percent of ABD recipients who are already struggling to make ends meet. While there is more work needed to increase the ABD cash grant, eliminating the shelter penalty is a common-sense step the legislature can take during a supplemental budget year to address the needs of an extremely low-income disabled population. The Operating budget impact for fiscal year 2021 is estimated to be $2.5 million.

Fixing the property tax exemption for affordable rental housing for very low-income households. Representative Doglio

Nonprofit affordable housing is currently granted a property tax exemption under certain circumstances, but it needs to be adjusted to work with the needs of today’s affordable housing providers. If a tenant’s income increases — which it often can because affordable housing stabilizes lives and improves employment opportunities — housing providers can be required to pay the full property tax. This unpredictability drives funders to require significant up-front cash reserves which can significantly increase the cost of building affordable homes. More details: This bill would adjust the initial target income of tenants from 50% of Area Median Income (AMI) and below, to 60% AMI and below to apply to more people. It would also eliminate the wildcard of future tax liability by allowing a tenant to increase their income without it triggering a tax liability for the property. Current law has this safeguard but limits it to properties of 10 units or less. This change would also require the apartment to be rented on vacancy to someone at 60% AMI or below. The Operating Budget impact is unknown, but likely very modest.

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Support agenda

Enacting a state level prohibition on rent gouging.

Rents are sky-high across Washington State and there is no limit on how much, or how often, for-profit landlords can raise the rent. There is a direct correlation between rent increases and increases in homelessness. In order to keep people in their homes, Washington should follow the lead of California and Oregon and implement controls on rent increases. The Housing Alliance would support a bill which does the following: - Applies to both multifamily and single family rental homes; - Controls rents at vacancy to prevent incentives to displace long-term tenants; - Caps year over year rent increases ideally no more than 3%; - Exempts affordable housing funded with state, local or federal funds, that is owned or operated by a nonprofit or public housing authority and seasonal farmworker housing. Lead organization: Tenants Union of Washington State

Passing HB 1590/Doglio Local jurisdictions need more options to generate local funds for affordable homes. HB 1590 would allow the current 1/10 of 1% sales tax funding option for affordable homes to be enacted through a simple majority vote of the city or county council. Local governments could still send it to the voters, but under HB 1590 they would not be required to.

Ensuring that the Housing Trust Fund’s geographic distributions are met for rural housing.

When the Housing Trust Fund was created it required that 30% of each appropriation be used to support affordable housing in rural Washington. This is still standing law, but as earmarks and restricted categories in the Housing Trust Fund (HTF) have become increasingly common, the 30% requirement has been compromised. This proposal would clarify that rural Washington be entitled to 30% of the entire HTF appropriation, not just the competitive portion, in any given year. This proposal supports farmworker housing and other rural affordable housing to reduce overcrowding, get families out of substandard conditions and out of homelessness. Lead organization: Office of Rural & Farmworker Housing

Establishing a Communities of Concern public development authority

This proposal supports the Communities of Concern Commission in seeking public development authority status to access funding to build self-determined capital assets in their respective communities to reduce poverty. This includes Capital Budget and Operating Budget requests of $1 million each. Lead organization: Catholic Community Services of Western Washington

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Amending the definition of “first time homebuyer”

This proposal would broaden the definition of First Time Homebuyer to include more people such as people who have owned manufactured homes or are displaced homemakers. Lead organization: Opal Community Landtrust

Reversing the cuts to TANF made during the great recession.

This proposal addresses the deep cuts that Washington made to TANF during the Great Recession. These cuts were achieved by implementing harsh sanctions and time limit policies as well as other restrictions and requirements. The result is that our current TANF caseload is at an all-time low in Washington State, despite simultaneous rise in deep poverty. Additionally, data shows that those with the highest barriers to stability are more penalized by these policies. One-third of those penalized at the time were homeless, more than 70 percent had a mental health need, and the penalties disproportionately impact communities of color. This is an Operating Budget proposal which is estimated to cost $57 million per biennium. Lead organization: Statewide Poverty Action Network

Fixing loopholes in deposit protections and increasing protections against post-tenancy debt.

The bill addresses a growing problem of tenants being billed for replacement of expensive fixtures, such as carpets or paint jobs, when the damage was not caused by the tenant. Exaggerated post-tenancy claims for damages are a significant component of tenant debt, which be a barrier to moving into a future home. This bill would help reduce the total amount of post-tenancy debt by addressing one of its most significant drivers. Additionally, it will update the definition of "normal wear and tear," require increased documentation from landlords to substantiate damage claims, and create a remedy for tenants whose landlords fail to comply with the documentation requirements. It will also limit the landlords' ability to send claims on to a collection agency. Lead organization: Columbia Legal Services

Enacting a Housing Justice Bill to prevent categorical denial of housing to people with criminal records.

People of color are significantly more likely to be impacted by the criminal justice system at every level, even when they have committed the same crimes as white people. Policies that deny housing to people who have previously been involved with that system compound that inequity and create barriers for people of color, especially African Americans, to accessing housing. The Washington Statewide Reentry Council is leading this effort and has been working with a large stakeholder group to develop language. Key elements of the proposal include a prohibition on landlords denying or making available any rental unit to a tenant/prospective tenant based on their dismissed charges, successful diversion, expungements, or juvenile records, or if they have obtained a certificate of restoration of opportunity (CROP). Lead organization: Washington Statewide Reentry Council

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Adopted September 13th, 2019 | This is not a comprehensive list of all policies HDC intends to advocate for or support throughout 2020. For more information, contact [email protected] | 206-682-9541

2020 State Legislative Priorities

The Housing Development Consortium Seattle-King County (HDC) is a nonprofit membership organization of 180 private businesses, nonprofit organizations, and public partners dedicated to the vision that all people live with dignity in safe, healthy, affordable homes in communities of opportunity. HDC supports the following state legislative priorities for 2020.

FUND THE STATE HOUSING TRUST FUND & EXPAND FUNDING FOR HOUSING & HOMELESSNESS

SERVICES

The growing need for affordable housing calls for innovative and practical tools to ensure a wide range of projects serve a diverse array of low-income populations. It is essential that we utilize revenue sources and incentives to acquire, rehabilitate, and preserve affordable homes for those who are most in need.

• Invest in a state revenue stream for preservation of affordable housing

• Expand the State Property Tax Exemption qualification from 75 percent of units occupied by households at 50 percent AMI and below to 75 percent of units occupied by households at 60 percent AMI and below

• Ensure that public dollars are used efficiently by pursuing measures that lower the costs of acquiring and/or rehabilitating affordable housing

EMPOWER LOCAL GOVERNMENTS TO ADDRESS THEIR CONSTITUENTS’ AFFORDABLE HOUSING

NEEDS

King County’s many moderate- and low-wage workers should be able to live affordably near their jobs, transit, and other resources rather than endure long, expensive, and polluting commutes that place them far from family and community for too much of the working day. Local governments need empowerment to increase local resources for more affordable homes within their communities. • Give local governments councilmanic authority to pursue revenue options suited for their

local housing needs

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HOUSING DEVEL?PMENT consortium

mailto:[email protected]

Adopted September 13th, 2019 | This is not a comprehensive list of all policies HDC intends to advocate for or support throughout 2020. For more information, contact [email protected] | 206-682-9541

EXPAND HOMEOWNERSHIP OPPORTUNITIES

Homeownership is a driver of both personal and community wellbeing. Owning a home offers stability and enables a household to build wealth, yet this opportunity has been increasingly difficult for many as median home sale prices around Washington State have increased more than 60 percent since 2012, and by even greater amounts in areas of concentrated growth like King County. HDC supports efforts to further the promise of increasing homeownership opportunities for low-income communities.

PROGRESSIVELY INCREASE REVENUE TO FUND ESSENTIAL SERVICES

Everyone deserves a top-notch education and quality mental health care, but they also need to have stable housing, healthy foods, and other basic needs to help them succeed. Additional revenues are needed to ensure Washington State can meet its paramount duty to fund education while maintaining our commitment to health, safety, and opportunity for all our residents. HDC believes that the state is best positioned to address the needs of people with modest incomes when revenues are sourced equitably. • Adopt an equitable and responsible budget that increases revenue progressively and

expands vital human services

ENACT REASONABLE TENANT PROTECTIONS THAT INCORPORATE BROAD STAKEHOLDER VOICE

The legislature should continue to work on ways to ensure that low-income people are not unfairly evicted from or denied housing. HDC encourages the legislature to incorporate views from a range of stakeholders (including non-profit/affordable housing landlords, tenants, private landlords, and legal aid organizations) on issues such as good cause eviction protections, the use of criminal histories in determining admittance to housing, and new policies for security deposits. Our diverse members are generally supportive of these policies; however we will carefully review each individual piece of legislation. • Ensure that tenants are not unfairly evicted

• Ensure that people exiting the criminal justice system are not unfairly denied housing

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2020 Affordable Housing & Homeownership PRIORITY AGENDA

We empower local families to build strength, stability, and self-reliance through a permanent solution...affordable homeownership.

Amend RCW 84.52.105RCW 84.52.105 allows jurisdictions to levy a voter-approved property tax (no more than $0.50 per $1,000 of assessed property value for no more than 10 years) for the production of affordable housing. The RCW currently limits the distribution of moneys raised to fund projects for households earning up to only 50% of the area median income (AMI). We recommend amending RCW 84.52.105 to allow the option for jurisdictions, which pass a voter approved affordable housing property tax levy, to distribute moneys raised to affordable homeownership and home repair programs serving households earning up to 80% of the local AMI.

Infrastructure Funding for Housing DevelopmentWe recognize one of the primary impediments to housing and affordable housing development is the cost of development infrastructure. By addressing this issue and property resourcing local jurisdictions, the legislature could move the needle for low and modest income households. We continue our support for HB 1680, which would redeposit 4.1% of the the Real Estate Excise tax into the Public Works Assistance Account (PWAA) and direct moneys collected for the next biennium to development infrastructure in support of housing development.

HB 1590 w/ AmendmentWe support HB 1590, which would give councilmanic authority to levy a 1/10th of 1% sales tax for affordable housing. We also support an amendment to RCW 82.14.540, as a part of this legislation, to designate a new population service group to include households earning up to 80% of the area median income (AMI) participating in affordable homeownership programs.

Incentives for Sellers of Land for Affordable Housing DevelopmentWe believe its important to provide affordable housing developers with a wide variety of opportunities to secure developable land. We support a Real Estate Excise tax (REET) exemption for the seller of real property to a non-profit organization for the purposes of housing and/or housing development for households earning up to 80% AMI.

Using affordable homeownership as an anchor for hope, change, and stability, Tacoma/Pierce County Habitat for Humanity has been building in the community since 1985. We are committed to transforming neighborhoods—fighting blight and advocating for fair and just housing policies—while increasing access to affordable homeownership for hard working

families and providing access to resources so homeowners can improve their communities.

www.tpc-habitat.org | [email protected] | (253) 627-5626

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~ Tacoma/Pierce County

~Habitat \f If for Humanity®

2020 Affordable Housing & Homeownership SUPPORT AGENDA

We empower local families to build strength, stability, and self-reliance through a permanent solution...affordable homeownership.

Washington Affordable Homeownership Coalition We support the Washington Affordable Homeownership Coalition's goal to provide more low-income Washington households with access to homeownership and home repair opportunities.

#UnlocktheDoorTacoma/Pierce County Habitat for Humanity is proud to support the Washington REALTORS’ Unlock the Door campaign. We believe it’s critical to rally our resources and educate our elected leaders on the changes necessary to enable our private and non-profit housing developers to build the housing stock necessary to accommodate all residents of our state. For more information visit: www.unlockthedoorwa.com

Forterra Capital Budget Request for Tacoma Hilltop Neighborhood DevelopmentTacoma/Pierce County Habitat for Humanity is proud to support Forterra's capital budget request to support the development of affordable housing and retail space in the Hilltop Neighborhood of Tacoma. We believe this project is an important investment in the vibrancy and future of the Hilltop community.

Using affordable homeownership as an anchor for hope, change, and stability, Tacoma/Pierce County Habitat for Humanity has been building in the community since 1985. We are committed to transforming neighborhoods—fighting blight and advocating for fair and just housing policies—while increasing access to affordable homeownership for hard working

families and providing access to resources so homeowners can improve their communities.

www.tpc-habitat.org | [email protected] | (253) 627-5626

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~ Tacoma/Pierce County

~Habitat \f If for Humanity®

www.unlockthedoorwa.com

Eastside Human Services Forum: 2020 State Legislative Agenda

Cross Cutting Priorities: • Increase funding levels for human services • Build agency capacity by increasing reimbursement rates through Medicaid, Social Security Act 4E and

4B, and Working Connections Child Care • Provide support for the work force including living wages and programs such as affordable housing and

child care • Increase coordination and funding for transportation to ensure equitable access.

Support Access to Basic Needs and Health Services: • Support and expand access to flexible, accessible prevention and treatment for opioid and other substance use

disorders including services delivered on school campuses • Create community-based capacity to treat mental illness and drug dependency • Enact a Working Families Tax Rebate.

Make Homelessness Rare, Brief, and One-Time by Making Housing More Accessible: • Increase funding for Housing Essential Needs program and increase the value for housing vouchers for SSDI

recipients in King County • Continue to invest in the Housing Trust Fund and allow local communities to retain a portion of the state’s sales

tax to invest directly into affordable home construction • Continue eviction reform and require just cause to terminate tenancy.

Support Older Adults and People with Disabilities: • Support legislation that will make medications more affordable and help employees save for retirement • Continue support for Long-Term Care needs and increase funding where needed, such as nursing homes and in-

home case management services.

Strengthen Early Learning and Youth Services: • Make child care and early learning accessible to all • Improve educational re-engagement programs and the GRADS program • Provide wrap-around supports for college students • Support the Child Support Pass Through.

The Eastside Human Services Forum fosters strong public and private partnerships for a stable network of health and human services for the benefit of all East King County residents. For more information about EHSF’s mission and efforts, please visit www.eastsideforum.org.

The Eastside Human Services Forum (EHSF) advocates for solutions that strengthen and grow the system of diverse and integrated services required for our communities to thrive.

The categories below ensure East King County residents reach their full potential and issues were selected with a focus on equity and diversity, with each being important to build up a healthy, thriving community.

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http://www.eastsideforum.org/

http://www.eastsideforum.org/

For additional information, please contact Celia Jackson, Office of King County Executive Mac Nicholson, Metropolitan King County Council [email protected] / 206-263-4195 [email protected] / 206-477-7908

1. The State should promote enhanced Integrated Managed Care (IMC) by encouraging local networks that incorporate locally-funded systems of social determinants of health. People’s experience of physical and behavioral health is integrated – their healthcare should be too. We should not isolate the benefits of state-directed integration solely to the Medicaid-funded portions of our system of care. Washington should integrate IMC with regional approaches to state crisis services and locally-funded systems of social determinants of health to achieve whole person care. Some low-income Washingtonians are ineligible for Medicaid, and some forms of effective care or intervention are not Medicaid reimbursable due to federal restrictions. Similarly, critical supports and systems like housing, crisis response systems, justice system reentry, homelessness services, employment, and financial stability services—while not healthcare themselves—are critical to making healthcare accessible, effective and sustainable.

King County, in partnership with over 45 community behavioral health providers, formed the King County Integrated Care Network (KCICN) to enhance local implementation of IMC as an integrated system of care. The KCICN blends Medicaid funds, state crisis funds, and over $180 million per year in local health and human services funds to provide whole person care and secure and protect services for the county’s lowest income residents. The public-private partnership delivers administrative simplification, value-based purchasing and clinical integration for patients, providers and managed care organization partners. The KCICN enhances the advantages of 5 MCOs varied approaches to managing care, ensuring there is a unified perspective that can recognize and call attention to trends that impact the whole region. In its first year, the KCICN achieved:

Supporting and enabling centralized and publicly-funded data systems to create and maintain system-

wide awareness of data trends, program effectiveness, and opportunities for improvement.

Identifying higher inpatient hospitalization utilization rates upon implementation of the transition and

continuing to work with the state and other partners to build system-wide awareness and strategies to

support consistent access to care.

To realize the full promise of integrated behavioral and physical healthcare, we need approaches like the

KCICN that integrate Medicaid-funded care with locally funded, regional networks of care and services that

promote social determinants of health.

Proposed State Behavioral Health Legislative Priorities for 2020

Updated November 18, 2019

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~ King County



For additional information, please contact Celia Jackson, Office of King County Executive Mac Nicholson, Metropolitan King County Council [email protected] / 206-263-4195 [email protected] / 206-477-7908

2. Establish robust accountability and transparency of Medicaid funding. As Washington moves to a blended premium for Medicaid physical and behavioral health services, managed care entities will gain the flexibility to invest the entire premium rate in the most efficient, high quality and effective services across the full continuum of physical and behavioral health. Without strong transparency and accountability mechanisms, savings could come at the cost of reduced provider payments and lower quality care, or a shift of investment from critical behavioral health services in favor of medical services. Some areas of the state are already experiencing delayed treatment authorizations and provider payment, which are creating substantial uncertainty and risk for client wellness and provider sustainability. When mental health and substance use disorder services are not available for the populations that need it, county government and residents bear the burden of isolated health services for low-income residents in jails, in courts, experiencing homelessness and receiving involuntary treatment. Washington should establish clear transparency in rate-setting to assure that Medicaid funding for community behavioral health care is clearly identified and enhanced, or maintained, in the integrated financing approach. The Health Care Authority, in partnership with counties, should also establish measures to monitor and mitigate for potential increases in crisis services. At a minimum, a maintenance-of-effort (MOE) funding level should be maintained and formally monitored for behavioral health care.

3. Increase access to care by addressing workforce challenges and expanding community-based behavioral treatment capacity with housing and supports.

King County supports investments in safe and appropriate treatment options for care close to home. Community placements with integrated services and supports are essential to the stability of individuals with behavioral health conditions discharging from state and local hospitals. In order to expand access to these services, Washington should:

Continue investing in expanded community-based behavioral health treatment facilities, including housing and supports, to offer the right treatment, in the right location, at the right time. This includes providing councilmanic authority for the existing behavioral health and housing sales tax.

Align the implementation of the state hospital transformation plan with the launch of new community beds to facilitate discharge from state and local hospitals.

Invest in adequate core rates and other targeted supports to strengthen the community behavioral health workforce.

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Recap of Recent Climate and Energy State Action and K4C Interests1 for 2020

Who we are King County, and seventeen partners representing more than 1.6 million county residents — Bellevue, Burien, Issaquah, Kenmore, Kent, Kirkland, Lake Forest Park, Mercer Island, Normandy Park, Redmond, Renton, Sammamish, Seattle, Shoreline, Snoqualmie, and Tukwila, plus the Port of Seattle — are working together through the King County-Cities Climate Collaboration (K4C) to coordinate and enhance the effectiveness of local government climate and sustainability action.

Our Shared Climate Goals and Actions In 2014, King County and all 39 cities formally adopted a shared target to reduce countywide sources of greenhouse gas (GHG) emissions at the county scale 25% by 2020, 50% by 2030, and 80% by 2050 (compared to a 2007 baseline). To support this goal, K4C partners mapped out and recently updated Joint County - City Climate Commitments to meet this target, in areas ranging from transportation and land use to renewable energy to waste reduction and recycling.

Importance of State Action While local governments have the responsibility to lead on climate solutions at the local level, a comprehensive and supportive policy and funding framework at the state level is essential to meeting our shared commitments. State policies and investments in climate and energy can also better position Washington State to be a leader in economic development. The current federal administration is continuing attempts to roll back the clean air and energy efficiency rules, weaken vehicle fuel efficiency standards, and scale back other federal efforts to reduce GHG emissions and support our communities’ work to prepare for local climate change impacts. This makes state and local climate action more important than ever.

Policy Interest Details for 2020 Legislative Session These policy interests draw from the K4C’s updated Joint City - County Climate Commitments from K4C legislative interests developed in recent years and are informed by anticipated proposals for state legislation. These policy interests are intended to advance shared climate commitments and to be a resource for local governments as they review state legislation, consider comment letters, and weigh in on state policies as they develop. We recognize that each K4C partner has unique policy and state legislative priorities and may not pursue all of these interests, but through focused, coordinated action, we can maximize the impact of our individual and shared efforts.

1 King County’s own formal legislative agenda is subject to review and approval by the King County Council, usually in November.

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Climate Policy K4C supports comprehensive science-based limits and a market-based price on carbon pollution and other greenhouse gases.

Recap of Recent Years: In 2019, the Washington State Legislature passed, and Governor Inslee signed into law, SB 5116

that requires that utilities supply 100% carbon-free electricity supplies by 2045, and use a social cost of carbon when evaluating resource decisions and conservation programs.

In 2019, the Legislature also passed HB 1112, which regulates and restricts most uses of hydrofluorocarbons by 2024. Governor Inslee signed this bill into law.

In 2019, a cap and trade bill that would reinvest proceeds was introduced late in session, but did not advance.

2020 Priorities: Support a price on carbon based on best available science that reinvests a substantial share of

revenues in efforts to reduce greenhouse gas emissions (e.g., transit service, energy efficiency and renewable energy projects, forest protection and restoration), prioritize investments that benefit communities most impacted by climate change, and ensure a just transition for workers in fossil fuel industries.

Support policies that establish and use “cost of carbon” methods for analysis and decision-making.

Strengthen state climate change targets to align with the Department of Ecology’s 2016 recommendations which are complementary to K4C and Growth Management Planning Council adopted targets.

Transportation and Land Use K4C supports comprehensive state policies and investments that reduce emissions from the transportation sector by reducing vehicle miles

travelled, lowering the GHG intensity of fuels, and catalyzing investments in clean passenger, transit, and heavy-duty vehicles. K4C supports policies to focus growth inside the Urban Growth Area cities and centers well served by transit and other mobility options. Recap of Recent Years: In 2019, the Washington State legislature passed, and Gov. Inslee signed into law HB 1512, which

authorized municipal utilities to offer incentives and programs for electric vehicles. In 2019, HB 2042 passed and was signed into law, providing incentives for a wide range of

alternative fuel vehicles and infrastructure, including zero – emission buses.

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In 2019, SB 5588, which authorizes the production, distribution, and sale of renewable hydrogen was passed and signed into law.

In 2019, HB 1110, which would have established a state-level clean fuels standard, did not pass through the Senate.

In 2019, SB 5911, which would have aligned Washington State’s zero-emission vehicle standards with the state of California’s standards, did not pass.

2020 Priorities: Support, as part of a comprehensive strategy for reducing transportation-related greenhouse gas

emissions: o Protection for and expansion of funding for public transit; o Adoption of cleaner fuel standards; o Incentives and investments for electrification of public and private fleets and lower

pollution from transportation fuels; o Continued funding and expansion as in previous years of the Commute Trip Reduction

program and the Regional Mobility Grant program; o Policies and incentives to support transit friendly development and easy connections in

vicinity of planned rail and high capacity transit and employment centers; o Follow through on principles for the VW Funding Settlement developed by the Puget

Sound Clean Air Agency in partnership with King County and several K4C partners

Energy Supply

K4C supports existing state renewable energy commitments including the Renewable Portfolio Standard and the Clean Energy Transformation Act

that provide for 100% Clean electricity supply by 2045 by partnering with local utilities, state regulators and other stakeholders on a countywide commitment to clean energy resources. Support policies that meet our future energy needs through deep energy efficiency, grid modernization, and expanded renewable generation while phasing-out fossil fuels. Recap of Recent Years: In 2019, the Washington State Legislature passed, and Gov. Inslee signed into law, SB 5116, the

Clean Energy Transformation Act, which requires 80% carbon free electricity supplies by 2030, and 100% carbon free supplies by 2045. This bill requires utilities to remove coal – fired electricity supplies from rates by 2025.

Also signed into law was SB 5223, which raised the utility volume cap for net metering from 0.5% to 4%. This bill did not include provisions to increase the system size that qualifies for net metering.

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2020 Priorities: Support a clear, articulated pathway for retirement of fossil fuel energy supplies that protects

ratepayers, creates jobs, supports a just transition, and maximizes replacement with new renewable resources.

Support changes in the utility Integrated Resource Planning process that promote equitable consideration of environmental and health benefits and greater emphasis on energy efficiency and demand management.

Support the Energy Independence Act (I-937) that requires increasing percentages of new energy load to be met by renewable sources other than hydropower. Washington State’s current renewable portfolio standard is currently at 9% of utility load, increasing to 15% by 2020 and years beyond.

Protect core provisions of the Clean Energy Transformation Act. Support distributed solar energy generation. Current state legislation limits the size of solar

arrays that qualify for retail electricity rates and limits the ability to meet net zero energy goals for larger buildings and the cumulative generating capacity from these renewable energy systems. We support policy changes that would expand utility limits for these systems and allow for development of larger solar installations while considering both the benefits of increased distributed solar energy generation and ratepayer fairness.

Green Building and Energy Efficiency K4C supports state policy changes and investments that will help us to reduce energy use in existing buildings 25% below 2012 levels by 2030,

achieve net-zero GHG emissions in new buildings by 2030, and reduce fossil fuel use in buildings by 20% by 2030. Recap of Recent Years: In 2019, the Washington State Legislature passed, and Governor Inslee signed into law, HB 1257,

which requires increasing commercial building efficiency and natural gas conservation programs, and authorizes development of renewable natural gas tariffs.

Early versions of HB 1257 contained authority for local governments to offer optional stretch codes for residential construction, but this provision was struck from the final bill.

HB 1444, which set stringent appliance standards for water and energy efficiency, passed and was signed into law.

A bill was proposed to enable the Property Assessed Clean Energy (PACE) financing mechanism but failed to pass.

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Several King County cities are developing High Performance Building policies and incentives.

2020 Priorities: Continue to strengthen our Washington State Energy code, leading the way to “net-zero

emissions” buildings by 2030. Support policies and new funding mechanisms to reduce energy use and save money for King

County residents and businesses. Support policies, tools and programs to reduce construction-related emissions, including

embodied carbon in construction materials. Provide State Department of Commerce grants to leverage energy efficiency and renewable

energy investments by local governments.

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PEOPLE FOR CLIMATE ACTION (PCA) KIRKLAND’S PRIORITIES FOR THE CITY OF KIRKLAND’S 2020 LEGISLATIVE SUPPORT AGENDA PCA’s mission is to help local governments develop and implement comprehensive climate action plans to reach the greenhouse gas reduction targets set by the King County-Cities Climate Collaboration (K4C), which include a 50% reduction by 2030. While County and City actions are critical to locally reduce greenhouse gas emissions, working in tandem with the State’s efforts, is also a very critical component to success. Although there were many very significant climate related legislative successes achieved during the 2019 State Legislative Session, urgent efforts are still needed to pass legislation in 2020, which address greenhouse gas emission reductions and the climate crisis. With the intent of advancing climate related legislation in 2020, PCA Kirkland is submitting the following four State Legislative Priorities, with an ask of the City of Kirkland, to support achieving their passage into law this session: (Note that the bill numbers referenced below are from the 2019 Session)

1. HB 1110/SB 5412 A Clean Fuel Standard: Reducing the greenhouse gas (GHG) emissions associated with transportation fuels. Transportation fuels are responsible for nearly half of our global warming pollution in Washington. This bill requires oil refiners and importers to reduce the carbon intensity of transportation fuels by 10% by 2028 and a 20% by 2035.

2. SB 5811/HB 1999 Adoption of California ZEV (Zero Emission Vehicles) Standards: Reducing emissions by making changes to the clean car standards and clean car program. California is the only state allowed under the federal Clean Air Act to adopt state standards for vehicle emissions, however other states are allowed to match California’s standards. This bill authorizes Washington to match all of California’s requirements for automakers to make available for sale in Washington State, both a broad range and a certain percentage of Zero Emission Vehicles (ZEV’s). 10 states currently have adopted a ZEV standard, including our West Coast neighbors, California and Oregon.

3. HB 1597 Rulemaking on Methane Emissions: Incorporating comprehensive measurements of greenhouse gas (GHG) emissions from certain fossil fuels into state environmental laws. Establishes a rule detailing the global warming impact of gas infrastructure/upstream methane pollution. Methane is such a powerful GHG that some have stated it is 87 times more damaging than carbon dioxide. This bill directs the Dept. of Ecology to establish a rule detailing the global warming impact of gas infrastructure, including new power plants. The Department of Ecology will manage the rulemaking process with a group that includes state agencies, local governments, affected communities, tribal nations, electric and gas utilizes, pipeline companies, academic and industry experts, environmental advocates and the general public. It authorizes the Department of Ecology to establish the rate at which methane (primary component of natural gas) leaks throughout the lifecycle process (from fracking at the wellhead to transporting, processing, storing and burning at power plants, LNG facilities, petrochemical facilities, homes and businesses). This leakage rate will apply to state and local permits for new gas projects and to assess the impacts of existing facilities. It would establish a rule to research and develop both a leakage rate and the global warming potential of methane (CH4) emissions. Rules about methane leakage accounting will help ensure gas-fired power plants aren’t built in transition to 100% clean energy.

4. HB 1796/SB 5730 Commercial Buildings Efficiency Funding Bill: Concerning commercial property assessed clean energy and resilience. (C-PACER Bill) Commercial, Property Assessed Clean Energy & Resilience). Establishes low-cost, long-term funding for new and existing commercial, industrial, non-profit and multi-family building’s energy efficiency, renewable energy, water conservation, fire protection, seismic or flood readiness enhancements. Local government and local lenders would cooperate on loans secured by the property tax obligation, similar to a local improvement district. This debt does not appear as an obligation on the owner’s balance sheet and the repayment obligation stays with the property rather than the owner, when the building is sold. Many such loan programs do not require any money down. Loan payments are largely offset by lower utility bills and lower insurance premiums. More than 30 states have passed PACE legislation since it was developed in 2008. California was the first to pass it and has made nearly $3 Billion in PACE loans.

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https://your.kingcounty.gov/dnrp/library/dnrp-directors-office/climate/2016-K4C-LetterOfCommitments.pdf

https://your.kingcounty.gov/dnrp/library/dnrp-directors-office/climate/2016-K4C-LetterOfCommitments.pdf

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FOR MORE INFORMATION ABOUT THESE PRIORITIES PLEASE CONTACT: Jason Mulvihill-Kuntz, Salmon Recovery Manager, Lake Washington/Cedar/Sammamish Watershed (WRIA 8)

[email protected] • (206) 477-4780 • http://www.govlink.org/watersheds/8/

2020 Legislative Priorities for

Salmon Recovery and Puget Sound Watershed Health

Lake Washington/Cedar/Sammamish Watershed (WRIA 8) Partners Updated: July 2019

NOTE: WRIA 8 Salmon Recovery Council members may be requested to participate in legislative

outreach to support the following state and federal salmon recovery priorities. In so doing, they are

acting on behalf of the WRIA 8 Salmon Recovery Council, representing policies, programs, and actions

identified in the WRIA 8 Chinook Conservation Plan.

(https://www.govlink.org/watersheds/8/reports/chinook-plan-update.aspx).

Federal Priorities

Support a $70 million Fiscal Year 2020 appropriations request for the Pacific Coast Salmon Recovery Fund (PCSRF) in Departments of Commerce and Justice, Science, and Related Agencies Appropriations Bill. The PCSRF program is the primary federal funding for salmon recovery and supports annual grants for priority salmon habitat protection and restoration projects.

Support funding in the Army Corps of Engineers (Corps) Fiscal Year 2021 Work Plan to advance design and construction of critical prioritized infrastructure repairs to the Hiram M. Chittenden (Ballard) Locks (amount TBD, based on Seattle District capability number) and to participate in a stakeholder process to identify concepts addressing elevated water temperatures and low dissolved oxygen in the Lake Washington Ship Canal.

Support an initial investment of $57.1 million in 2020 to initiate implementation of the Pacific Salmon Treaty through priority Puget Sound habitat protection and restoration projects, hatchery conservation programs, and a Southern Resident Orca prey program, and support an ongoing annual investment of $52.4 million implement this international treaty. The Pacific Salmon Treaty is critical to meeting the provisions of the federal Endangered Species Act, addressing tribal fishing rights, and maintaining sustainable U.S. fisheries that provide 26,700 full time equivalent jobs and $3.4 billion in economic value

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https://www.govlink.org/watersheds/8/reports/chinook-plan-update.aspx

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annually. Signed by the United States and Canada in 1985, it provides a framework for the two countries to cooperate on the management of Pacific salmon and is revisited roughly every 10 years to reflect current conditions and address new challenges. The revamped Treaty (2019-2028, approved January 2019) reflects the international commitment to ensure a better future for salmon and Southern Resident Orcas.

Support increasing funding to $750,000 (up from $600,000 in previous fiscal years) for each National Estuary Program (NEP), including the Puget Sound Partnership, plus $4 million for competitive grants and programs. This NEP funding is core program funding for Puget Sound Partnership and for competitive grants supporting implementation of near-term actions called for the Action Agenda for Puget Sound recovery.

Support the “Promoting United Government Efforts to Save Our Sound Act” (PUGET SOS Act), H.R. 2247, which will establish a Puget Sound Recovery National Program Office in the Environmental Protection Agency to coordinate federal Puget Sound recovery efforts with state, local and tribal recovery efforts and enable greater levels of federal funding for Puget Sound recovery. The bill enhances the federal government’s role and investment in Puget Sound by amending the Clean Water Act to add a new section dedicated to Puget Sound recovery, providing lasting and structural recognition of the Puget Sound as a waterbody of national significance on par with the Chesapeake Bay and the Great Lakes, and authorizing up to $50 million for the Puget Sound Geographic Program (currently funded at $28 million).

Support legislation that seeks to increase funding and incentives for green stormwater retrofits and infrastructure, including:

o In May 2019, Congressman Kilmer introduced legislation titled, “Preventing Pollution through Partnerships Act” or the “P3 Act” (H.R. 2718), which would incentivize private investment in green infrastructure through creation of a new category of tax-exempt Green Infrastructure Private Activity Bonds (PBAs) that state and local governments can use to encourage developers to include green infrastructure in development plans. These PBAs enable local governments to leverage private investment in projects that benefit the public interest, while also providing a potential revenue source for developers. The bill authorizes each state to evaluate and approve projects that qualify for a Green Infrastructure PAB. This ensures each qualified project will effectively addresses the unique challenges faced by the community where the project is located. Developers can use proceeds from the Green Infrastructure PAB to cover the cost of planning, engineering and design, construction, and third-party site certification for any qualified green infrastructure project.

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State Supplemental Budget Priorities

Identify and support specific funding requests for priority projects identified in and/or consistent with the WRIA 8 salmon recovery strategies.

Support state agency budget requests for monitoring salmon populations and for studies and management of predation, disease, and other issues that affect WRIA 8 salmon populations.

State Policy Legislation Priorities

Support and explore opportunities to engage in developing legislation that seeks to provide immunity from liability for entities that implement habitat restoration projects involving the placement of large wood.

Track and support legislation that seeks to improve regulatory protections for areas that are important for salmon habitat, and oppose legislation that reduces regulatory protections for these areas.

Track and participate in continued efforts to explore watershed-based and/or regional funding authorities to support multiple-benefit projects that address salmon habitat protection and restoration, water quality, stormwater management, and flood management.

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2020 Outreach, Communications and Intergovernmental Plan

Cascade and its members provide cost effective essential services in a well-honed governance model that is lean and nimble to provide safe, reliable water for the future. To that end, Cascade created its 2020 annual outreach and intergovernmental plan that incorporates ongoing relationship building, community relations, media and communications, government relations and legislative agendas. Outreach efforts contain separate strategies and resulting tactics for member service areas and Lake Tapps communities. This plan is driven by Cascade’s member input from members’ evaluation of last year’s work and their goals for 2020.

Our members stated …. “Coming from nowhere we now have an extremely strong voice. We are seen as leaders not followers. People listen to us. We can achieve results. Public Affairs programs are a key to maintaining this stature. Continue to provide leadership on state, regional and federal issues. Continue to be good neighbors to the Lake Tapps community. Inform and involve Cascade members in issues and keep all elected officials informed.”

The issues that ranked as the most important included continued leadership and attention to emerging issues, implemented by 1) leading regional planning and policy issues and continuing to be a presence on the state, national and industry level policy and issues; 2) keeping members updated as needed (Member Update, council briefings and outreach to member service areas; and 3) ongoing outreach through traditional and social media, community meetings, issue information, sponsorships and advertising. Please note that Lake Tapps outreach will still include contact with the community, but that the focus of activities and outreach will be on water quality programs.

All these elements drive this 2020 outreach plan. The goal of Cascade’s outreach as outlined in this plan is to ensure Cascade reaches key audiences and the public through its effective outreach and legislative program. Strategies are outlined and full tactical plans flesh out implementation. A calendar of activities to support these plans is also included.

November 20, 2019

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,.,efio_ CASCADE

WATER ALLIANCE

2020 Outreach and Communications Plan

Overview: Cascade and its members provide cost effective essential services in a well-honed governance model that is lean and nimble to provide safe, reliable water for the future. This plan is driven by Cascade’s strategic plan and shaped through input from members. Cascade’s goal is to ensure it can provide services and reach key audiences and the public through an effective traditional and social media communications outreach program. All these elements drive this 2019 outreach plan.

Objective: Ensure Cascade provides regional planning, legislative and communications outreach to ensure safe, clean and reliable water for its members. This includes building on existing, robust regional, state and federal outreach efforts through a well-planned governmental strategy to meet Cascade’s needs. These objectives were reinforced by input from board members outlining priorities and direction for 2020. Plans include separate outreach for member service areas and Lake Tapps community.

Research, input, outreach and action: Cascade member input shaped this plan. Cascade will continue its outreach to members, member staff, and stakeholders who receive Cascade information. Regional partners also supported a strong outreach effort. Resiliency activities will be continued in 2020.

Key Audiences:

• Our members, their councils, commissions and members’ residents • Regional partnerships • Key influencers that impact Cascade • Residents surrounding Lake Tapps (to improve water quality for future water use)

Key Messages:

• Cascade is its members. The organization is lean and nimble. Cascade and its members are ready to respond to challenges facing water supply and emergencies so customers can get water

• Cascade leads regional advocacy and partners towards solutions • Cascade leads and supports efforts to provide a resilient water supply • Cascade and its members use water wisely • The Lake Tapps reservoir is a future municipal water supply and nearby residents and Cascade

care about water quality

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'"'. ,-,:-._ CASCADE WATER ALLIANCE

Strategies: To reach Cascade’s objectives, Cascade will continue and expand its strong culture of regional collaboration and leadership to:

• Continue and expand its long history of leading processes for regional solutions to common challenges facing Cascade, its members and other water providers

• Collaborate and promote work regarding regional efforts with the Water Supply Forum, resiliency efforts, state issues, industry needs, and federal government, in the policy and regulatory arena

• Have the ability to respond quickly in water supply emergencies as a result of resiliency planning and execution to meet needs of Cascade, members, customers and businesses, including working with members and partners to develop and maintain an effective regional communications infrastructure allowing dissemination of emergency and water information

• Develop a strong water quality/natural yard care outreach program at Lake Tapps in anticipation of eventual municipal water supply use for members

2020 Tactics: Cascade will continue its work with members and other partners on key issues as needed. It will promote education on resiliency to members and their customers, and focus on water quality of the Lake Tapps reservoir. Overall, Cascade will communicate through a variety of channels by:

• Focusing on outstanding regional leadership in all aspects of Cascade’s operations • Establishing and implementing a robust legislative agenda that includes emergency authority,

reclaimed water and infrastructure funding • Promoting Cascade and Forum resiliency outcomes and recommendations as approved • Developing and implementing an outreach plan focusing on natural yard care and water quality

for the Lake Tapps reservoir as a future municipal water supply • Creating and maintaining an editorial calendar to integrate all activities and message delivery • Expanding social media options to reach Cascade and its members’ leaders, businesses, industry

sectors and residents in a water emergency with updates, alerts and information in a measurable way that engages residents and businesses

• Combining traditional media, social media, advertising, meetings with key stakeholders and council/commissions of our members and of the Lake Tapps community as well as sponsorships, events, informational campaigns, TappsWise water quality efforts and other programs will be outlined to implement this effort.

• Create a year-long calendar will be developed and monitored throughout the year to ensure tactics are being finished and objectives met.

Evaluation: Determine if messages are being understood, through surveys and other input throughout the year and at the end of the year. Continue to work with Board members and member staff to meet their needs through this and future strategies as needed. At the beginning of the fourth quarter of 2020, ask members for guidance, then work with member staff to establish the 2021 Outreach, Communications and Intergovernmental Plan and budget.

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2020 Legislative and Public Policy Plan

Cascade’s supports measures at all levels of government that enhance Cascade’s ability to provide safe, clean, reliable water in a cost-effective, environmentally sensitive manner. Cascade’s outreach strategy at every level is to develop and implement an overall public policy plan that will continue already established positive relationships at all governmental levels. This will help ensure decision makers have positive attitudes to and are receptive to Cascade’s future needs and legislative measures. The following represents the proposed public policy agenda for 2020.

FEDERAL

Cascade will utilize its board, staff and members to create a visible leadership role at the national level on crucial issues surrounding water supply. The plan includes general outreach to Congress, by maintaining Cascade’s already excellent relationships with its Congressional delegation, as well as key committees, federal agencies such as the Departments of the Interior and Energy, the EPA and Corps of Engineers. Cascade will seek opportunities to have a presence at key industry and/or policy meetings and events by staff and/or members. Cascade will work with media outlets to tell Cascade’s good governance story and how to manage regional issues in collaboration with others.

2020 Federal Legislative Agenda:

1. Mud Mountain Dam operations: o Fish Passage and Barrier Structure – Aggressively lobby to ensure necessary funding

is available to keep this project on track to meet federal biological opinion requirements.

o Multi-Purpose Study – Study the possibility of expanding the flood control purpose of the Corps of Engineers’ Mud Mountain Dam to include storage of water for later use supporting in-stream flows, recreation and water supply with other key stakeholders in the Lake Tapps community.

o Gauging/Ongoing Monitoring on the White River – Continue Cascade’s commitment to accurate gauging and monitoring on the White River.

2. High Efficiency Toilets – Work at the national level to help determine the feasibility of and support legislation that promotes high efficiency toilet standards.

STATE

Cascade will grow its strong existing relationships at both the legislative, executive and staff levels as well as with key water industry associations. In 2020, Cascade will build on its successes with coalitions on key issues in the state agenda (i.e., wastewater and PFOAs) and others as appropriate.

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'"'. ,-,:-._ CASCADE WATER ALLIANCE

2020 State Legislative Agenda:

• Legislative Priorities • Wastewater Governance: Find solutions that enable utility agencies within the King County

wastewater service area to have a voice and a vote in critical governance, rates, budgets, plans, etc. on measures that directly affect their customers

• PFOAs Measures: Work with affected utilities to coordinate on this critical issue and raise legislative awareness regarding allowable levels and potential remediation

• Affordability Measures: Consider statute language to allow utilities to address such issues • Milfoil Prevention: Follow example of California and Oregon and restrict boater access to

state waters without boat inspection • Legislation Cascade is monitoring and/or supporting

• Promote Cascade and Members’ Presence at Legislature as industry leader/problem solver: Review, and, if appropriate, support members’ 2020 legislative agendas Work with other agencies of which Cascade is a member – support and promote

approved issues on agendas of groups like the Water Supply Forum, WWUC, WASWAD

Support existing industry organizations – Continue to further common water-policy interests, legislative goals, technical fixes as needed, conservation, etc.

• Resiliency: Continue to lead resiliency planning for members on issues as needed • Water Efficiency Measures: Review and if warranted support legislation that promotes

water efficiency, including but not limited to high efficiency toilet standards • State funding options for infrastructure and investments: Cascade will continue to monitor

various proposals being discussed prior to session regarding water infrastructure investments. If legislation is created, staff will report back regarding next steps

• Initiate and Participate in Legislative Workshops and Committees: Cascade will promote responsible, environmental water use/regional governance at workshops/committee hearings

• Monitor Other Key Industry Issues – Watch progress on pending or emerging issues • Tours – Offer legislators/staff tours of Lake Tapps to educate them on critical issues there.

MUNICIPAL

Cascade works with all cities and counties in our service area and the Lake Tapps/Piece County area, and will continue to hold regular meetings with the Four Cities, Lake Tapps communities, Pierce County and other related agencies. Cascade will continue to identify and address issues as they arise.

2020 Municipal Agenda

• Support Cascade members’ legislative agendas as appropriate • Ongoing monitoring (county and city levels) of local land use issues (comp plans, shoreline

management, etc.) and other measures that have an impact on Cascade • On-going monitoring of King County Flood Control District as well as county legislation or

regulations that may have an impact on Cascade/members’ current or future projects • Ongoing monitoring (county and city levels) of water quality and other issues in the White River

and Lake Tapps areas.

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Tactics to Implement 2020 Outreach Efforts TACTIC ACTIVITY

Partnership with Members

• Update Councils, commissions as needed or on specific issues as requested; updates, alerts

• Work on regional legislative issues; support members’ legislative agendas • Monthly member updates, alerts, meetings • Update members’ key stakeholders, business leaders, civic groups, etc., as

requested • Create, support resiliency and emergency efforts with exercises and classes • Establish Lake Tapps water quality programs for future municipal water supply

Focus for 2020 • Cascade Resiliency – support, outreach and build emergency communication network and infrastructure plan to support direction

• Water Supply Forum - work collaboratively to reach consensus and develop, present Resiliency Plan; aggressively market and promote to media, civic and elected leaders; develop implementation plan and lead efforts to promote

• Continue established outreach via traditional outreach vehicles to identified audiences and public and expand web and social media outreach to build strong emergency communication infrastructure (separate plan)

• Develop, implement natural yard care program; focus on septic system maintenance and Lake Tapps monitoring for water quality

Legislative, Public Policy, Advocacy and Outreach

• Public Affairs Committee (monthly; first Wednesday) • State Legislative agenda / 2020 Legislative Session

• Wastewater Governance: Find solutions that enable utility agencies within the King County wastewater service area to have a voice and a vote in critical governance, rates, budgets, plans, etc. on measures that directly affect their customers

• PFOAs Measures: Work with members to coordinate on this issue and raise legislative awareness regarding critical levels/potential remediation

• Affordability Measures: Consider statute to allow utilities to address this • Milfoil Prevention: Follow example of California and Oregon and restrict

boater access to state waters without boat inspection

• Federal agenda –focus on Mud Mountain Dam funding and multi-purpose study • Water Industry – participate and seek opportunities to tell Cascade story

Community Relations and Outreach

Members’ targeted outreach plans

Create plans for key issues as needed

Create plans for key stakeholders as needed

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Develop Cascade materials, exercises for resiliency

Practice drills, table tops, other materials as needed; coordinated messaging

Establish strong emergency and ongoing communications infrastructure and emergency/resiliency plans with the Forum

Enhance existing communications and outreach efforts with web, social media with emphasis to be able to reach all key constituencies quickly and efficiently as needed

Join appropriate chambers of commerce. Chamber memberships: Join and participate as appropriate in all member service area chambers and those in the Lake Tapps community

Lake Tapps community Focus on water quality/natural yard care; advertising, operations, milfoil, community meetings, and meetings with Four Cities’ mayors as needed

Industry Groups, National industry WWUC, WASWD, AMWA, AWWA

Forum Resiliency Efforts Lead communications and outreach

Communications

Earned media More proactive communications opportunities for Cascade through stories, op-eds releases, etc.

Web Drive to web for latest on Cascade, members, water quality and increase ability to use to get news out. New site allows staff to do work internally. Continue to improve and enhance.

• Create integrated measurable social media strategy that engages residents and businesses

• Water efficiency resource page with new information, links, Cascade program offerings etc.

• Create new videos • Ongoing water quality focus and

information and resources • New information on Lake Tapps

water quality • Ability to issue alerts • Measurement tools • WNW page updated

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Social media program Expand FB, Twitter and email alerts, update website. Share with members so they can post too. Enhance and improve E-newsletter.

“WNW” Social media program Create a comprehensive, integrated social media promotion of water including video, web, Instagram, Facebook, Twitter and You Tube

Paid Advertising -- Members

• Cascade Gardener (Jan-April) • Fix a Leak Week (March) • Others as needed • Water for People Ad

Sound Publishing: Bellevue, Issaquah, Kirkland, Redmond, Renton, Tukwila Reporter Newspapers – quarterly pages

Paid Advertising -- Lake Tapps • Bonney Lake Chamber back page • Announcements • ‘Who to Call’ update • SwimSafe promotions • TappsWise info/workshops (TBD)

Lake Tapps area only (Enumclaw Courier Herald / Auburn Reporter)

Water efficiency support – members Flower and garden show, Cascade Gardener classes, leak detection, road shows, curriculum and enhanced web resources; water use efficiency rule outreach; irrigation and wise water through building efficiencies

Periodic e-newsletter Effort to reach leaders, key stakeholders and residents with Cascade information

Community Report (key topics depending) Report available in electronic format, printed in Reporter papers

Wise Water Use/Cascade Gardener/WNW Outreach throughout winter, early spring to promote classes, wise water use messages, water wall appearances

Update, maintain and build a current, usable database

Collect new contact information throughout the year through all appropriate Cascade activities (fairs,

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classes, newsletter, etc.) and update database of contacts for emergency communications: manage content

Sponsorships, community events, memberships

Sponsorships: Major regional events as well as events in member areas and around Lake Tapps; Omnibus Sponsorship Package to full board in January 2020 for approval

Continue using new process for adoption of all sponsorship

• WA Env. Council event – tbd • Bellevue Family 4th – July • Issaquah Salmon Days – October • Kirkland Concerts – July/August • Redmond Derby Days - July • Sammamish Days - August • Skyway Health/Safety Fair – August • Tukwila Community Backyard

Wildlife Celebration – May • Tukwila See You in the Park - July • Fairs, markets, etc. • Others TBD as deemed appropriate • Bonney Lake Days - August • Beautify Bonney Lake – September • New sponsorships as

recommended through the staff and committee process

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2020 Outreach and Communications Calendar

Month Date Activity or Event Lead/completed 2020 January

1 January Member Update EK/AB/PA 8 Public Affairs Committee EK/AB/BSC/SL 7/8/9 (confirm) East King County Chambers Legislative

Coalition breakfast EK/AB/BSC/SL

13 Legislative Session begins EK/AB TBD Cascade Gardner ads in member Reporter

papers EK/AB/BSC/SC/PA

23 Board meeting All TBD Winter e-Newsletter EK/AB/BSC/SL/PA TBD Forum meeting /all communications EK/AB On-going Nature Vision Classroom Presentations in

member area schools MB

On-going Ongoing presence in Olympia; update members as needed

EK/AB

On-going WNW web presence updates (daily/monthly) ED/PA On-going Gather sponsor information/documents SL

TBD Sound Publishing web ads in member service areas

EK/AB/BSC

February 1 February Member Update EK/AB/PA 5 Public Affairs meeting EK/AB/BSC/SL 12 Lake Tapps Spring Fill release EK/AB/BSC Mid-February Cascade Gardner ads in member Reporter

papers EK/AB/BSC/SC

TBD Cascade Gardner Classes begin in member areas

PA

2/26-3/1 NW Flower and Garden Festival (booth, WNW display)

MB

26 Board meeting/annual meeting ALL On-going Nature Vision Classroom Presentations in

member area schools PA

On-going Ongoing presence in Olympia/Legislative session continues

EK/AB

On-going Provide members with information for their water quality reports (CCRs)

EK/AB

On-going WNW web presence updates (daily/monthly) ED/PA On-going Planning for TappsWise Natural Yard Care

workshop(s) and program EK/AB/TPCHD


EK/AB/BSC

March 1 March Member Update EK/AB/PA 4 Public Affairs Committee EK/AB/BSC/SL TBD Cascade Gardner ads in member Reporter

papers EK/AB/BSC/SC/PA

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TBD Fix a Leak Week ads in member Reporter papers

EK/AB/BSC/SC

TBD Fix a Leak Week press release EK/AB/BSC/PA TBD National Fix a Leak Week EK/AB/PA 25 Board Meeting ALL TBD Cascade Gardener Classes in member service

areas PA

On-going Nature Vision Classroom Presentations in member area schools

MB

On-going Ongoing presence in Olympia/Legislative session continues

EK/AB

On-going WNW web presence updates (daily/monthly) ED/PA On-going Planning for TappsWise Natural Yard Care

workshop(s). Will include ads and press release in Lake Tapps area Reporter papers

EK/AB/BSC/SC/TPCHD


EK/AB/BSC/PA

April 1 April Member update EK/AB/PA 1 Public Affairs Committee EK/AB/BSC/SL 1 Offer presentations to members and/or

outreach meetings with community leaders RH

22 Board meeting ALL TBD Cascade Gardener Classes PA On-going Nature Vision Classroom Presentations in


On-going WNW web presence updates (daily/monthly) ED/PA TBD Forum meeting/all communications EK/AB On-going Prep for Lake Tapps Community meeting

including postcard/ad/release EK/AB/BSC/SL

May 1 Verify with member jurisdictions sponsor/event on site strategy

SL

1 May Member Update EK/AB/PA 6 Public Affairs Committee EK/AB/BSC/SL TBD TappsWise natural yard care workshop EK/AB/TPCHD TBD TappsWise septic system classes EK/AB/TPCHD TBD Lake Tapps area Reporter paper ads and Who

To Call insert EK/AB/PA

TBD Spring e-Newsletter EK/AB/BSC/SL/PA TBD Tukwila Backyard Wildlife Festival (WNW wall

and booth) SL/MB

27 Board Meeting ALL TBD Possbile Lake Tapps Community Meeting EK/AB/BSC/SL On-going WNW web presence updates (daily/monthly) ED/PA On-going Nature Vision Classroom Presentations in


June 1 June Member Update EK/AB/PA

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3 Public Affairs Committee meets EK/AB/BSC/SL 24 Board Meeting ALL On-going Nature Vision Classroom Presentations in


On- going/TBD Farmers Markets MB/PA On-going WNW web presence updates (daily/monthly) ED/PA Throughout Members issue Water Quality Reports (CCRs) EK/AB

July 1 July Member Update EK/AB/PA 1 Public Affairs Committee EK/AB/BSC/SL 4 Bellevue Family 4th SL/MB 10/11 Redmond Derby Days (WNW wall and booth) SL/MB TBD Kirkland Concert Series (WNW wall and booth) SL/MB TBD Tukwila See You in the Park (WNW wall and

booth) SL/MB

TBD Forum meetings/all communications EK/AB 22 Board Meeting ALL On-going WNW web presence updates (daily/monthly) ED/PA On- going/TBD Farmers Markets MB/CS

August 1 August Member Update sent EK/AB/PA 5 Public Affairs Committee EK/AB/BSC/SL TBD Sammamish Days/Party on the Plateau (WNW

wall and booth) SL/MB

TBD Bonney Lake Days SL TBD Skyway West Hill Health and Safety Fair (WNW

wall and booth) SL/MB

TBD Kirkland Concert Series (WNW wall and booth) SL/MB 26 Board Meeting ALL On-going/TBD Farmers Markets MB/CS On-going WNW web presence updates (daily/monthly) ED/PA On-going Draft Member Survey 2020 Eval / 2021

Priorities EK/AB/BSC/SL

September 1 September member update EK/AB/PA 2 Public Affairs Committee meets – reviews

draft 2020/2021 Member survey EK/AB/BSC/SL

5 2020/2021 Member survey sent to Board members and alternates (return by Board meeting)

EK/AB

TBD Beautify Bonney Lake SL/MB 23 September Board Meeting – 2020/2021

Member Surveys returned ALL

TBD Fall eNewsletter EK/AB/BSC/SL/PA TBD Host TappsWise natural yard care and septic

maintenance workshops; Supporting ads in Tapps area Reporter papers

EK/AB/BSC/SL/TPCHD/SC/PA

On-going Nature Vision Classroom Presentations in member area schools

MB

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On-going Begin drafting 2021 Public Affairs, Communications and Outreach, and Water Efficiency plan

EK/AB/BSC/SL

On-going WNW web presence updates (daily/monthly) ED/PA On-going Begin drafting 2021 legislative priorities EK/AB/BSC/SL

October 1 October Member Update EK/AB/PA 7 Public Affairs Committee – reviews draft 2021

Public Affairs, Communication and Outreach, and Water Efficiency plan

EK/AB/BSC/SL

3/4 Issaquah Salmon Days (WNW wall and booth) SL/MB 28 Board Meeting ALL On-going Nature Vision Classroom Presentations in


On-going WNW web presence updates (daily/monthly) ED/PA TBD Forum meeting/all communications EK/AB TBD Lake Tapps fall drawdown press release, EK/AB/BSC/SL/PA

November 1 November Member Update EK/AB/PA 5 General Election Day

ALL

4 Public Affairs Committee – adopt 2021 Public Affairs, Communications and Outreach, and Water Efficiency plan including 2021 event sponsorship plan; adopt 2021 legislative priorities

EK/AB/BSC/SL

Nov-Dec Outreach to newly elected municipal and state officials and provide briefings

EK/AB/BSC/SL/GTH

Post-election Update database – newly elected officials and stakeholder updates

BSC/SL

TBD November Board Meeting ALL On-going WNW web presence updates (daily/monthly) EK/PA On-going Nature Vision Classroom Presentations in


December 1 December Member Update EK/AB/PA 2 Public Affairs Committee EK/AB/BSC/SL On-going WNW web presence updates (daily/monthly) ED/PA Nov-Dec Year-end wrap up member update EK/AB/BSC/SL

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Washington Fire Chiefs

2020 Legislative Priorities

• Stable funding & revenue for fire service agencies

o In conjunction with other fire service partners, WFC supports legislation to allow for the

permanent imposition of a fire benefit service charge, subject to voter approval.

o Working with other fire service partners, WFC supports passage of HB 1169 (Peterson/Griffey)

to clarify state law regarding cost reimbursement from insurance carriers for services and

supplies used in the cleanup and removal of debris and hazardous substances that go beyond

what taxpayers fund for fire department readiness.

• Wildland Policy

o Early deployment of mobilization resources – WFC supports legislation to allow for the early

deployment of resources in instances of known, forthcoming mobilizations, with the aim of

engaging suppression efforts earlier.

o Adequate reimbursement for mobilization costs – WFC, in conjunction with local agencies, is

exploring possible efforts to enable fire service jurisdictions sending resources for state-approved

mobilization events to recover more of their actual cost for those resources, with the aim of

mitigating local disincentives to sending needed resources for mobilization efforts.

o Wildland fire funding increase – WFC supports DNR’s funding request for additional investment

in several key areas regarding wildland fire suppression and mitigation, which would lead to

quicker response, increased prevention efforts, and better forest health practices.

• Volunteer FF Pension

o WFC is supporting an effort by the WSFFA/BVFF to increase the pension benefit for volunteer

firefighters. HB 1912 (Blake) & SB 5892 (Mullet) have been introduced and would increase the

base pension by $50, up to $350/month, for all current and future retirees; remove the cap of 25

pension payments; increase the annual pension fee from $60 to $90; and increase the annual

disability fee from $30 to $50. There will be no increase in administrative costs to the agency.

• JATC Funding & Sustainability

o WFC, in conjunction with the WSCFF, supports a study to identify opportunities for improving

the JATC program, which currently resides with the State Fire Marshal’s Office and is governed

by LNI. The study would be led by the Washington State Board for Community & Technical

Colleges, where many other apprenticeship programs are currently operated.

• Washington State Association of Fire Marshals’ Issues

o WFC supports WSAFM efforts on a number of legislative action items, including food truck

safety, townhome fire safety, and adult family home (AFH) fire safety.

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2020 ALLIANCE FORGUN RESPONSIBILITYPOLICY AGENDA

Regulate Access to Ammunition and High-Capacity Magazines: Washington’s background check system helps ensure firearms do not make it into dangerous hands. However, we do not currently address access to ammunition and the high-capacity magazines that make semi-automatic weapons extraordinarily deadly. We should take steps to require background checks on all ammunition and magazine purchases and prohibit magazines that can carry more than 10 rounds.

Address the Intersection Of Alcohol and Firearm Violence: Emerging research shows a clear link between even a single driving under the influence (DUI) conviction and future violent acts. Today, our law prohibits firearms possession after a felony DUI. We can help keep guns out of crisis situations by adjusting our laws to temporarily restrict access to firearms after a second DUI conviction, while incentivizing treatment pathways and encouraging continued sobriety where appropriate by allowing for earlier restoration of firearms rights.

Keep Kids Safe: Firearms are prohibited in K-12 schools across our state. But other places where our children gather to learn and play do not have similar protections. We can help keep our kids safe by extending the protections for K-12 schools to early learning centers, parks, and libraries across Washington.

Restore Local Authority: If local leaders determine there are events or places where firearms present a high risk, they should be able to act. Our state should allow local governments to put stronger laws into place when it is right for the community.

Centralize Our Background Check System: In 2019, the Legislature passed HB 1949, directing the Office of Financial Management to study ways to centralize our state’s background check system. The Legislature should implement and fully fund the suggestions brought forward as a result of that study.

Keep Confiscated Crime Guns Off The Street: Allowing the State Patrol to destroy confiscated crime guns, rather than require them to auction or trade them will help keep dangerous crime guns out of our communities.

Require Safety Training: Twenty-seven states and the District of Columbia require safety training before issuing a concealed pistol license; Washington is not one of these states. Updating our laws to include training requirements will help ensure people carrying concealed weapons know how to safely handle them.

Community and Victim Protection: Washington continues to make tremendous strides to help ensure firearms are removed from dangerous people and crisis situations. As we implement these laws, there are additional ways to strengthen these provisions, including allowing access to important databases, aligning penalties for violations, clarifying procedures to restore firearm rights, ensuring concealed pistol licenses are removed at the same time as firearms, funding crime victims support with a surcharge on ammunition sales, and using best practices for surrender processes statewide.

Support Community-Based Programs: Research on programs in cities like New York, Oakland, and Milwaukee continues to show the promise of holistic, community-based programs in preventing gun violence. Supporting programs like these in Washington will help interrupt and prevent gun violence.

Require Reporting of Lost and Stolen Firearms: Our state should follow the example of a growing number of cities in Washington and require owners to alert law enforcement that their weapon may now be on the black market within 48 hours of the weapon being lost or stolen.

Require Law Enforcement Agencies to Participate in Firearms Tracing: Law enforcement agencies have a number of tools at their disposal to trace firearms from the point of sale to the crime scene, and to connect weapons to multiple crimes, but all too often these systems go unutilized. Implementing programs to overcome barriers to using these systems will help law enforcement agencies to use them statewide.

Update Laws to Ensure Violent Individuals Are Prohibited from Purchasing Firearms: Illegal discharge, or display of a firearm and other crimes do not currently prohibit potentially dangerous individuals from purchasing and possessing firearms. This ought to be rectified. In addition, we should make the act of threatening to commit mass violence a crime that prohibits individuals from possessing firearms.

\\\ Alliance For Gun Responsibility PO Box 4187 Seattle, WA 98194 \\\ gunresponsibility.org

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Washington Recreation & Park Association – 2020 Legislative Agenda

Top Priorities

*Provide Local Parks and Recreation Agencies with new Funding Options to Address Vital

M&O and Preservation Needs and to Enhance Economic Development

(Policy/Fiscal Bill) Parks and recreation are outdoor, quality-of-life amenities that are highly valued

by the public. They offer activities that help us maintain physical health and well-being; protect open

spaces and facilities that make our communities attractive and vibrant; they help to sell homes. Just

as importantly, local parks and recreation programs enhance jobs-creation and economic

development efforts and build trail networks that connect our communities. But investments in local

parks and recreation suffered during the Great Recession and have lagged behind areas such as

public safety in the years afterward. At the same time, a WRPA survey of parks agencies has

shown a growing M&O deficit and backlog. WRPA will work with key lawmakers on a modified

bill that is narrower than 2019 legislation authorizing the creation of Parks Benefit Districts.

The 2020 bill will allow parks and recreation agencies to take a .1 percent sales tax increase

to voters and bond against new sales tax proceeds upon voter approval. A few parks and

recreation agencies have this authority, but the overwhelming majority – including all

Metropolitan Park Districts (MPDs) and Park Districts – do not.

Strongly Support $50,000 Allocation to Update Outdoor Recreation Sector Economic Analysis

(Operating Budget) WRPA joins a broad-based coalition of organizations in urging the Legislature to

expend $50,000 to update the “Economic Analysis of Outdoor Recreation in Washington State”

first released in January 2015. The initial report showed that the outdoor recreation sector generates

$21.6 billion a year in economic activity, $12.5 billion in direct sales, and $4.7 billion in household

wages. The study should be regularly refreshed and updated to give fiscal and policy decision-

makers current information on the economic, social, health, and environmental benefits of the

outdoor recreation sector.

Protect Funding for Dedicated Accounts within the Capital Budget

(Capital Budget) As the Legislature considers its 2020 Supplemental Capital Budget, WRPA urges lawmakers to refrain from diverting funding from dedicated accounts that are focused on

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funding outdoor recreation activities. Additionally, WRPA urges legislators to utilize the dedicated accounts for fund outdoor recreation programs and avoid the use of “bond backfill” that ends up putting funding in jeopardy and in competition with other critical construction projects. Dedicated accounts that are key to WRPA include the Washington Wildlife & Recreation Program (WWRP), Youth Athletic Facilities (YAF), and Aquatic Lands Enhancement Account (ALEA), as well as others including the Boating Facilities Program (BFP), Non-Highway Off-Road Vehicle Account (NOVA), and Land and Water Conservation Fund (LWCF). WRPA urges lawmakers to keep top-of-mind studies showing that the outdoor recreation sector generates nearly $22 billion a year in economic activity for the state, as well as 200,000+ jobs.

“Support/Oppose” Items

Efforts to Address Mental Health, Homelessness, Affordable Housing

(Policy Bills, Budgetary Items) WRPA will strongly support efforts led by cities and counties, the Low-Income Housing Alliance, and others, to ensure the Legislature provides ongoing tools for local governments to address growing mental health, homelessness, and affordable housing crises in their communities. Without a systematic plan for addressing housing, homelessness, and mental health, those in need of shelter will seek out other public lands to use, leaving parks officials attempting to manage issues they are ill-equipped to resolve.

Legislation to Ban Sales/Transport of English and Atlantic Ivy in our State

(Policy Bill) The City of Olympia is likely to lead a 2020 legislative effort to ban the sale and

transportation of English and Atlantic Ivy in Washington State. Such a step is necessary because

these types of ivy cause significant environmental damage to parks, trails, shorelines, and forest

areas. The State of Oregon already has acted to ban the sale of these types of ivy. WRPA will

support this bill if it is brought forward.

“Big Tent” Outdoor Recreation Coalition

(Budgetary, Policy Items) WRPA strongly supports the continued work of the “Big Tent” Outdoor Recreation Coalition, an umbrella organization comprised of several dozen outdoor retailers, non-profits, and others that seek to ensure Washington State recognizes and maximizes the economic, societal, tourism, and health benefits of outdoor recreation. WRPA is prepared to support 2020 legislative and budget efforts by the Big Tent Coalition.

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Advocate for Key “Healthy & Active Communities” Funding within the State Budget Process

(Capital, Transportation, Operating Budgets) As part of its ongoing “Healthy and Active Communities” initiative begun several years ago, the WRPA will work to ensure adequate funding of grant programs and budgetary items that help youth and adults to live active and healthy lifestyles; enhance public health; and combat a growing obesity trend in Washington and across the country. WRPA supports these key budgetary items and wants to ensure that within expenditures, a strong role for parks and recreation is identified and included:

• Public Health District and “Healthiest Next Generation” funding -- Operating Budget;

• Bicycle and Pedestrian Grant, Safe Routes to Schools, and “Complete Streets” funding in the Transportation Budget;

• Dedicated accounts and grant programs in the Capital Budget such as WWRP, YAF, ALEA, NOVA, BFP.

Support Increased Funding Associated with the “No Child Left Inside” Grant Program

Washington State Parks seeks an increase of nearly $1.2 million for NCLI – with $750,000 of that going toward an increase in the approved grant-funding level for 2019-21 ($1.5 million). The remainder of the funds would go toward community outreach, public engagement, and staffing for things such as a Junior Ranger program as well as initiatives to help get youth outdoors, broaden diversity, and enhance cultural inclusiveness in the use of State Parks. WRPA is poised to support this request.

Support Increase in the Annual Discover Pass Fee from $30 to $35

Washington State Parks, with support from the Departments of Natural Resources and Fish and Wildlife, seeks authority to increase annual Discover Pass fees from $30 to $35. If approved, the increase, which would take effect January 2021, would be the first one in nearly 10 years. State Parks seeks the additional funds to cover inflationary costs of paying for services, equipment, etc. WRPA is poised to support this request.

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Agency Collaboration Items

1) “Sustainability” Definition Used by Recreation & Conservation Office (RCO) in

Evaluating and Scoring for Grant Programs: WRPA is working closely with RCO to

ensure that the ‘sustainability’ questions and criteria within its grant programs act as a filter

and a factor, vs. a somewhat-subjective tool that can negatively impact scoring for certain

types of project applications.

2) Statewide Trail Plan: WRPA wants to provide support for efforts by the State Parks

Commission to update the Statewide Trail Plan, and to provide technical assistance as well

as strategic input on construction and maintenance options to be utilized for local jurisdiction

trail segments.

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_ J Lake WashingtonSchool District

Lake Washington School District #414 2020 Legislative Platform

Four Learning Communities One District For All Kids

Mission: Each student will graduate prepared to lead a rewarding and responsible life as a contributing member of our community and greater society.

Vision: Every Student Future Ready: Prepared for college, Prepared for the global workplace, and Prepared for personal success.

Strategic Plan Connection: Academic Success

Special Education Programs and Services: The Office of the Superintendent of Public Instruction (OSPI) estimated the cost of fully funding special education to be $308 million per year or $616 million per biennium. This would be needed on top of the approximately $3.3 billion allocated to the special education programs going forward. In the 2019 Session, the Legislature increased special education funding by changing the safety net program and increasing the excess cost multiplier.

While the Legislature has made some progress, more work needs to be done. The special education funding shortfall forces school districts to either spend levy dollars on this essential component of basic education or risk being in violation of federal law.

Strategic Plan Connection: Well-Being

Social Emotional Learning: Students are most successful when their social-emotional, mental, and physical needs are met at school. The Legislature needs to update the prototypical school model and provide more funding for counselors at all grade levels. The Legislature should work with districts on additional pilot programs that could help to promote social-emotional learning which enhances school safety.

Strategic Plan Connection: Effective Use of Resources

School Construction Funding: Rapid enrollment growth in the Puget Sound area and new class size mandates have created significant demand for new school facilities. We also need changes to the school construction funding formula so that the state pays a fair share of the cost of building schools.

Simple Majority for School Bonds: We need a constitutional amendment that authorizes simple majority for school bonds.

Strategic Plan Connection: Excellent Staff

School Employees Benefits Board: In 2017, the Legislature created the School Employees Benefits Board (SEBB). The goal was to bring all school employees in the state into one benefits pool and save money. There are a number of outstanding issues with the new program, including unfunded costs, coverage for substitutes, and ending program participation when premiums are not paid.

Lake Washington Board of Directors: President: Siri Bliesner; Vice President: Mark Stuart; and Directors: Chris Carlson, Eric Laliberte, and Cassandra Sage. Lake Washington School District Superintendent: Dr. Jane Stavem

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SCA 2020 Legislative Agenda

Address the Affordable Housing and Homelessness Crisis The state and cities must partner to preserve and increase the supply of affordable housing as, well as address behavioral health needs and other root causes of homelessness. Sound Cities Association urges the Legislature to:

• Allow cities to create and preserve affordable housing through optional local tools, including extending the timeline to approve a “qualifying local tax” provided under HB 1406 adopted in the 2019 legislative session

• Continue to expand investment in the Housing Trust Fund • Address other underlying causes of homelessness by providing support to cities to implement

innovative local solutions and increasing investments in our state’s behavioral health system

Invest in Transportation Infrastructure and Mobility The economic vitality of our state demands that we invest in our existing transportation infrastructure and prioritize new investments that improve the movement of people and goods. Cities have increased investments in local transportation systems, but still face an annual funding gap for maintenance and operation of those systems of $1 billion statewide. Sound Cities Association urges the Legislature to:

• Partner with cities to develop a comprehensive transportation bill that provides new resources and options for local government to address transportation and mobility needs

Fully Fund the Public Works Trust Fund and Provide Options for Local Infrastructure Needs Today’s cities are building the infrastructure necessary to accommodate a growing population and economy. Investments in infrastructure keep communities vibrant, protect the environment, and attract economic development. Cities need tools to lower the cost of providing local infrastructure and to avoid further exacerbating the housing affordability crisis. Sound Cities Association urges the Legislature to:

• Fully fund the Public Works Trust Fund

• Support economic development tools that help maintain and expand local infrastructure, such as Tax Increment Financing and similar tools

Preserve Local Decision-Making Authority Cities possess strong local knowledge and authority to keep communities safe, healthy, and improve quality of life. It is critical cities maintain the authority to provide the necessary services and retain local control over land use planning that will help communities thrive.

Provide the Tools for Cities to Address Local Priorities City revenue streams are limited and are not structured to sustainably keep-up with rising costs. Cities need flexible local funding tools, fewer unfunded mandates, and continued support from the state for shared responsibilities. Sound Cities Association urges the Legislature to:

• Replace the arbitrary 1% cap on annual property tax increases with a limit tied to inflation plus population growth

• Meet the state’s commitment to revenues intended to be shared with cities to serve our shared constituents

• Continue streamlined sales tax mitigation to affected cities

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38 Cities. A Million People. One Voice.

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CC BY 4.0

CONTACT INFORMATIONWayne DotyCapital Budget [email protected]

Capital investments serve students and communitiesWashington’s system of 34 community and technical colleges deeply appreciates the Legislature’s support last session. For the 2020 session, we are requesting capital investments to modernize our aging campuses and ensure we provide excellent teaching and learning environments for our students.

Backlogged projects, rising costsOur college system faces a significant backlog of capital projects. Only 63 percent of our system’s 21 million square feet of facilities is in at least adequate condition. The costs to repair, maintain and preserve existing facilities grows at about 10 percent each biennium, consuming funds needed to improve and modernize the facilities. As a result, we face a significant backlog of projects. Those projects become increasingly expensive as construction costs rise with every year of delay.

Washington’s community and technical colleges request a $273 million capital budgetOur $273 million request list is in priority order and ranked based on a rigorous assessment of the need for space, condition of existing facilities, systemwide policy objectives and estimated costs. The request will fund 25 projects at 23 colleges across the state.

Fully funding these projects will help colleges serve students in high-demand programs like STEM and allied health. Other projects — like those designed for student services, libraries and a new satellite campus — focus on supporting student success.

Funding from the Legislature will benefit students at every college, transform local communities and put people to work in well-paying jobs that support the local economy.

SEPTEMBER 11, 2019

2020 SUPPLEMENTAL CAPITAL BUDGET REQUEST

Except where otherwise noted

See reverse side for our prioritized 2020 supplemental capital budget request.

Previous Requests and Funding Levels

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WASHINGTON'S

COMMUNITY AND

TECHNICAL COLLEGES

$700M $600 M $S00M $400M $300M $200 M $100 M

$M

~ 2020 Supplemental Request ~ Requested ■ Received

COMMUNITY AND

TECHNICAL COLLEGES Washington State Board

► ►

◄

2

2020 SUPPLEMENTAL CAPITAL BUDGET REQUEST

Priority College Phase Project 2020 request

1 Everett Design Baker Hall Replacement $2,954,000

2 Spokane Falls Construction Fine and Applied Arts Replacement $37,140,000

3 Tacoma Design Center for Innovative Learning and Engagement $2,952,000

4 Wenatchee Design Center for Technical Education and Innovation $3,216,000

5 Clark Construction North Clark County Satellite $51,965,000

6 Shoreline Design STE(A)M Education Center $3,005,000

7 Everett Construction Learning Resource Center $47,018,000

8 Lower Columbia Design Center for Vocational and Transitional Studies $3,171,000

9 Spokane Design Apprenticeship Center $3,253,000

10 Grays Harbor Construction Student Services and Instructional Building $43,005,000

11 Columbia Basin Design Performing Arts Building Replacement $2,394,000

12 North Seattle Construction Library Building Renovation $29,976,000

13 Whatcom Design Technology and Engineering Center $3,026,000

14 Walla Walla Construction Science and Technology Building Replacement $9,307,000

15 Cascadia Design CC5 Gateway Building $3,057,000

16 Edmonds Design Triton Learning Commons $3,595,000

17 Renton Design Health Sciences Center $3,974,000

18 Bellingham Design Engineering Technology Center — Building J Replacement $1,346,000

19 Centralia Design Teacher Education and Family Development Center $2,077,000

20 Skagit Design Library/Culinary Arts Building $2,220,000

21 Highline Design Welcome Center for Student Success $3,072,000

22 Clark Design Hanna/Foster/Hawkins Complex Replacement $2,420,000

23 Peninsula Design Advanced Technology Center $2,220,000

24 South Seattle Design Rainier Hall Renovation $3,479,000

25 Seattle Central Design Broadway Achievement Center $2,899,000

$272,741,000

College Project Authority

Shoreline COP to expand Allied Health, Science & Manufacturing $10,000,000

Grays Harbor COP for Student Services and Instructional Building (if construction is funded) $3,200,000

2020 SBCTC capital request for financing authorities

2020 SBCTC supplemental capital request for new appropriations

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12/23/19

AWC City Action Days - 2020 Hotel RL Olympia by Red Lion 2300 Evergreen Park Drive, Olympia

Schedule Subject to change.

The event begins on the afternoon of January 28 with optional early start sessions.

All events are held at the Hotel RL Olympia unless otherwise noted. Tuesday, January 28 8 – 11:15 am Continental breakfast included

Early start: Parliamentary Procedures (separate registration required) Limited seating available

11:30 am – 1 pm Lunch included

Early start: Advocacy Academy Optional early start session, limited seating available

1:15 – 2:15 pm Concurrent sessions (included in registration) Optional early start sessions

2:15 pm

3:00 pm

Doors open for general session

Governor Jay to talk with city leaders about his agenda for the year and his plans to work with cities.

2:30 – 4 pm Opening general session

4:15 – 5:15 pm Hot topics roundtables

5:30 – 7 pm Legislative Reception Heavy appetizers and drinks provided; Dinner on your own. This popular legislative reception provides an opportunity to network with legislators, cabinet members, and fellow local officials.

Wednesday, January 29

7 – 8:45 am Breakfast included

Networking breakfast

8:45 – 11:30 am General session

11:30 am – 12:30 pm Lunch included

Networking lunch

11:30 am – 3 pm Hill climb: Appointments with legislators, attend hearings – shuttle service to/from Hotel RL and Capitol Campus

Attachment C E-




CITY OF KIRKLAND Public Works Department 123 Fifth Avenue, Kirkland, WA 98033 425.587.3800 www.kirklandwa.gov

MEMORANDUM


From: Julie Underwood, Interim Director of Public Works John Starbard, Deputy Director of Public Works Stephanie Croll, Senior Assistant City Attorney Katy Coleman, Senior Development Engineering Analyst


Subject: NEW CINGULAR (AT&T) COMMUNICATIONS MASTER USE PERMIT—FIRST READING

RECOMMENDATION:

Staff recommends that the City Council conducts a preliminary review (first reading) of a proposed Communications Master Use Permit with New Cingular Wireless PCS, LLC (AT&T), for an initial term of ten years to facilitate its deployment of small cell wireless technology in the City.

No action is required or requested at this first reading. Staff plans to return to the Council at its January 21, 2020 meeting to request action on the proposed Permit at that time.

BACKGROUND DISCUSSION:

The wireless communications industry is migrating to a new technology called “small cell.” Whereas the wireless technology that is more common today relies substantially on equipment attached to tall towers or on the roofs of tall buildings that may be far apart from each other, small cell technology relies on a greater density of equipment sites closer to the ground. Small cell technology will facilitate the voice and data communication that most residents and businesses experience with cell phones, and also will facilitate new technologies such as autonomous vehicles and advanced data communications.

As provided in State law, communication utility providers are regulated not by franchise agreements but instead by Communications Master Use Permits (CMUPs). A CMUP authorizes the grantee to operate in the City for a defined term and to use the City’s rights-of-way for its equipment and service needs under the terms in the CMUP. Separate from the CMUP, small cell companies subsequently must enter into pole attachment agreements with the City to use City-owned poles. Pole attachment agreements are entered into administratively. As small cell companies deploy their equipment, they also will seek to use other existing poles, such as those owned by Puget Sound Energy, under separate agreements with those entities.

Council Meeting: 1/7/2020 Agenda: Business Item #: 11. b.

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The City entered into its first CMUP with Seattle SMSA (Verizon) on January 2, 2018 only for the geographic area south of N.E. 116th Street. Verizon desired to test small cell equipment in the Juanita area. On September 17, 2019, at Verizon’s request, the City Council amended Verizon’s original CMUP to expand the geographic area to the entire City. This proposed CMUP with New Cingular Wireless/AT&T, if approved by the City Council on January 21, 2020, would be the City’s second CMUP to encompass the entire City. Other companies may seek CMUPs in the future.

Federal law requires local governments to effectively treat these providers the same, so the proposed CUMP with New Cingular Wireless/AT&T is substantially the same as the CMUP the City Council approved for Verizon.

In early 2019, the Federal Communications Commission (FCC) imposed sweeping new regulations related to small cells that are advantageous to the industry and greatly limit a local government’s authority to regulate small cell equipment. These new federal regulations prescribe the length of time a local government is allowed to review small cell permits, cap both the fees a local government can charge to process the permits and the amount of rent it can collect for the use of government-owned poles, limit the urban design requirements that can be applied to small cell equipment, and impose other rules and regulations that are disadvantageous to local government. Kirkland has joined a coalition of many local governments nationwide to challenge the new FCC regulations. An appeal is pending currently in the 9th Circuit in the Northern District of California. The coalition asked the Court to stay the FCC regulations pending appeal, but its request for a stay was denied. Thus, until that matter is decided the City is obligated to abide by the federal rules that are in place today. These federal restrictions on local government’s ability to exercise its customary police powers may become more noticeable to the public when small cell equipment begins to appear on non-City poles, which will be the majority of the installations, because their bulkiness and design may be at odds with community expectations (see Exhibit B to Attachment A). By contrast, small cell equipment on City-owned poles most often will be concealed within new hollow-core metal poles and equipment bases paid for by the Grantee (again, see Exhibit B to Attachment A).

The proposed CMUP with AT&T, in the form of an ordinance, is attached. To summarize, some of the proposed terms are:

PURPOSE The purpose of the ordinance is to grant a non-exclusive Communications Master Use Permit to New Cingular Wireless PCS, LLC (AT&T), for the right to install, operate, and maintain a wireless communications system within the public rights-of-way of the City. The right does not include other City properties (e.g., parks).

AREA All of the City.

TERM Initially 10 years. May be extended twice by mutual agreement for additional 5-year terms (total of 20 years if both extensions exercised).

CONCEALMENT At the City’s request, all small cell equipment on City-owned poles shall be concealed or enclosed as much as technologically feasible in new poles and bases. Practically, this will happen because the Grantee will want to locate at a certain site where there is now a City street light. The City will have the right to request a replacement of the light and pole with a pole that allows

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concealment. Most often this will occur in areas where there are no or limited wood pole alternatives owned by others (e.g., downtown).

RELOCATION Generally, the City may require a relocation of the Grantee’s facilities in the rights-of-way at no cost to the City if the City is undertaking an alteration, repair, or improvement there.

DEFAULT If the Grantee fails to comply with the terms of the Permit, the City may serve written notice to comply within 30 days. If the Grantee still doesn’t comply, the City may cause a remedy and charge reasonable costs and expenses to the Grantee. The City may act to remedy a situation without a 30 day notice if there is an emergency. If prompt and diligent remedy is not made by the Grantee following notice, the City can declare an immediate forfeiture of the Permit.

UNDERGROUNDING Most small cell equipment will need to be above ground, usually on poles, in order for the technology to work. However, the Permit provides that the Grantee will cooperate with the City to underground new and existing facilities that can be undergrounded, generally at no cost to the City.

ASSIGNMENT The Permit may not be assigned or transferred without the City’s consent; however, with notice to the City it may be assigned in whole or part to either a) an Affiliate (as defined in Ordinance), or b) the surviving entity in the eventof a merger or acquisition of substantially all of the Grantee’s assets in theFCC Cellular Market Area for King County, Washington.

EFFECTIVE DATE Effective five days from the passage and publication of the ordinance.

Attachment A: Proposed Ordinance with New Cingular Wireless (AT&T) Granting a Communications Master Use Permit

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ORDINANCE O-4714 AN ORDINANCE OF THE CITY OF KIRKLAND RELATING TO GRANTING NEW CINGULAR WIRELESS PCS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, A NON-EXCLUSIVE COMMUNICATIONS MASTER USE PERMIT FOR THE RIGHT, PRIVILEGE, AND AUTHORITY TO MAKE USE OF THE PERMIT AREA FOR COMMUNICATIONS PURPOSES. WHEREAS, New Cingular Wireless PCS, LLC (“Grantee”) has 1 requested that the City grant it a nonexclusive permit for the right to 2 install, operate and maintain a wireless communications system within 3 the public Rights-of-Way of the City; and 4 5 WHEREAS, current federal regulations limit the City’s ability to 6 deny the non-exclusive permit and the City Council finds it desirable for 7 the welfare of the City and its residents that such a non-exclusive permit 8 be granted to Grantee; and 9 10 WHEREAS, the City Council has the authority under state and 11 local law to grant permits for the use of its Rights-of-Way; and 12 13 WHEREAS, the City is willing to grant the rights requested by 14 Grantee subject to certain terms and conditions. 15 16 NOW, THEREFORE, the City Council of the City of Kirkland 17 do ordain as follows: 18 Section 1. Definitions. For purposes of this Communications 19 Master Use Permit (the "Permit"), the terms defined in Kirkland 20 Municipal Code (“KMC”) 26.08.020 shall apply. In addition, the terms 21 below have the following meanings: 22 23

A. “Affiliate” means an entity which owns or controls, is owned 24 or controlled by, or is under common ownership with Grantee. 25

26 B. “City” means the City of Kirkland, a municipal corporation of 27

the State of Washington. 28 29 C. “Small Cell Wireless” means a personal wireless services 30

facility that meets both of the following qualifications: (i) each antenna 31 is located inside an antenna enclosure of no more than three cubic feet 32 in volume or, in the case of an antenna that has exposed elements, the 33 antenna and all of its exposed elements could fit within an imaginary 34 enclosure of no more than three cubic feet; and (ii) primary equipment 35 enclosures are no larger than seventeen cubic feet in volume. The 36 following associated equipment may be located outside the primary 37 equipment enclosure and if so located, are not included in the 38 calculation of equipment volume (but remain included in the definition 39 of Small Cell Facilities): Electric meter, concealment, telecomm 40


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demarcation box, ground-based enclosures, battery back-up power 41 systems, grounding equipment, power transfer switch, and cut-off 42 switch. Small Cell Facilities shall also include all necessary cables, 43 transmitters, receivers, equipment boxes, backup power supplies, 44 power transfer switches, electric meters, coaxial cables, wires, conduits, 45 ducts, pedestals, antennas, electronics, and other necessary or 46 convenient appurtenances used for the specific wireless 47 communications facility. Equipment enclosures with equipment 48 generating noise that exceed the noise limits allowed in the Codes or 49 associated permit are excluded from “Small Cell Facilities.” Services do 50 not include personal wireless services and associated facilities that fall 51 outside of the definition of Small Cell Facilities (i.e. macro facilities). 52

53 D. “Facilities” means all appurtenances or tangible things 54

owned, leased, operated, or licensed by the Grantee, including but not 55 limited to wireless communications antennas, transmitters, receivers, 56 equipment boxes, backup power supplies, power transfer switches, cut-57 off switches, electric meters, coaxial cables, fiber optic cables, wires, 58 telecom demarcation boxes and related materials and equipment; and 59 any and all other equipment, appliances, attachments, appurtenances 60 and other items necessary, convenient, or in any way appertaining to 61 any and all of the foregoing. Said facilities shall be used for the sole 62 purpose of providing a small cell network. 63

64 E. “Communications Master Use Permit” or “Permit” shall mean 65

the initial authorization or renewal thereof, granted by the City, through 66 this Ordinance, or a subsequently adopted Ordinance, which authorizes 67 the use of rights-of-way in the Permit Area for construction and 68 operation of the Grantee’s Facilities for the purpose of offering 69 communications service. 70

71 F. “Permit Area” means the geographic area as set forth in 72

Exhibit A attached hereto and incorporated herein by reference. 73 74 G. “Person” means an individual, partnership, association, joint 75

stock company, trust, corporation, limited liability company or 76 governmental entity. 77

78 H. “Rights-of-way” means any highway, street, shoulder, 79

landscape area between sidewalk and curb or shoulder, alley, sidewalk, 80 utility easement (unless the City’s use of the utility easement is solely 81 restricted to another use or other uses), or other public rights-of-way 82 for motor vehicles or any other uses under the City’s control and/or in 83 its jurisdictional boundaries. It does not include (1) state highways; (2) 84 structures, including poles and conduits located within the right-of-way; 85 (3) federally granted trust lands or forest board trust lands; (4) lands 86 owned or managed by the state Parks and Recreation Commission; (5) 87 federally granted railroad rights-of-way acquired under 43 U.S.C. 912 88

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and related provisions of federal law that are not open for motor vehicle 89 use; or (6) parks or other public property not used as a public right-of-90 way, including the Cross Kirkland Corridor. 91

92 I. “Communications Service” means the transmission of 93

information in electronic or optical form, including, but not limited to, 94 voice, video, or data, whether or not the transmission medium is owned 95 by the provider itself. Communications Service includes wireless 96 communication services and telephone service, but does not include 97 cable TV or commercial video service or over-the-air broadcasts to the 98 public at large from facilities licensed by the Federal Communications 99 Commission or any successor thereto. 100

101 Section 2. Permit Area and Authority Granted. 102 103 A. Facilities within Permit Area. The City does hereby grant to 104

Grantee the right, privilege, authority and Permit to use Rights-of-Way 105 in the Permit Area to construct, support, attach, connect and stretch 106 Facilities between, maintain, repair, replace, relocate, upgrade, remove, 107 enlarge, operate and use Facilities in, upon, over, under, along and 108 across Rights of way in the Permit Area for purposes of Communications 109 Services, to the extent not inconsistent with Section 4 herein. 110

111 B. Permission Required to Enter Onto Other City Property. No 112

right to install any facility, infrastructure, wires, lines, cables, or other 113 equipment, on any City property other than a Right-of-Way, or upon 114 private property without the owner’s consent, or upon any City, public 115 or privately owned poles or conduits is granted herein. Nothing 116 contained within this Permit shall be construed to grant or convey any 117 right, title, or interest in the Rights-of-Way of the City to Grantee other 118 than for the purpose of providing the Services, or to subordinate the 119 primary use of the right-of-way as a public thoroughfare. If Grantee 120 desires to expand the services provided within the City, it shall request 121 a written amendment to this Permit. If Grantee desires to use City 122 owned property, including poles and structures within the Rights-of-123 Way, it shall enter into a separate lease or license agreement with the 124 City. 125

126 C. Grantee’s Customers. Grantee shall have the right, without 127

prior City approval, to offer or provide capacity or bandwidth to its 128 customers consistent with this Permit provided: 129

(a) Grantee at all times retains exclusive control over its 130 telecommunications system, Facilities and Services and 131 remains responsible for constructing, installing, and 132 maintaining its Facilities pursuant to the terms and 133 conditions of this Permit; 134

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(b) Grantee may not grant rights to any customer or lessee 135 that are greater than any rights Grantee has pursuant to 136 this Permit; 137

(c) Such customer or lessee shall not be construed to be a 138 third-party beneficiary under this Permit; and 139

(d) No such customer or lessee may use the 140 telecommunications system or services for any purpose 141 not authorized by this Permit, nor to sell or offer for sale 142 any service to the citizens of the City without all required 143 business licenses, Permit or other form of state-wide 144 approval. 145

146 D. Amendments. Amendments to the Permit may be proposed 147

by the Grantee during the term of this Permit. The Public Works Director 148 shall review the amendment request to determine if it should be granted 149 or if a new Communications Master Use Permit is necessary. 150

151 E. Nonexclusive Permit. This Permit is granted upon the express 152

condition that it shall not in any manner prevent the City from granting 153 other or further permits in, along, over, through, under, below, or across 154 any said Rights-of-Way. This Permit shall in no way prevent or prohibit 155 the City from using any of said roads, streets, or other public properties 156 or affect its jurisdiction over them or any part of them, and the City shall 157 retain power to make all necessary changes, relocations, repairs, 158 maintenance, establishment, improvement, dedication of same as the 159 City may deem fit, including the dedication, establishment, 160 maintenance, and improvement of all new Rights-of-Way, 161 thoroughfares and other public properties of every type and description. 162

163 Section 3. Construction and Maintenance. 164

165 Grantee's Facilities shall be located, relocated and maintained 166 within the Permit Area so as not to unreasonably interfere with the free 167 and safe passage of pedestrian and vehicular traffic and ingress or 168 egress to or from the abutting property and in accordance with the laws 169 of the State of Washington. Whenever it is necessary for Grantee, in 170 the exercise of its rights under this Permit, to make any excavation in 171 the Right-of-Way, Grantee shall obtain prior approval from the City of 172 Kirkland Public Works Department, pay the applicable permit fees, and 173 obtain any necessary permits for the excavation work. Grantee shall 174 meet the City's specifications per the Kirkland Municipal Code (“KMC”) 175 and the Public Works Pre-Approved Plans and Policies. 176 177

Section 4. Location and Relocation of Facilities. 178 179 A. Undergrounding. Grantee shall place any new Facilities 180 underground where existing telecommunications and cable facilities are 181 located underground. Provided, however, this requirement shall not 182

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apply to that specific portion of the Facilities that are required to remain 183 above ground in order to be functional. Any new Facilities to be located 184 above-ground shall be placed on existing utility poles and shall be small 185 cell type equipment in a form substantially similar to that pictured in 186 Exhibit B, attached hereto. No new utility poles, ground mounted 187 equipment or overhead utility lines shall be installed in connection with 188 placement of new above-ground facilities except as otherwise approved 189 by the City under this Permit or under a separate permit. 190

In order to minimize negative visual impact to the surrounding 191 area, The Public Works Director may deny a request to install above 192 ground small cell wireless facilities (antennas and associated facilities) 193 if more than one hundred (100) cubic feet of above ground wireless 194 facilities exist within a one hundred fifty-foot (150’) radius of the 195 proposed facility location. 196

197 B. Location. Grantee may locate its Facilities anywhere within 198

the Permit Area consistent with the City’s Pre-Approved Plans and 199 Policies, and subject to the City’s applicable Code requirements. 200 Grantee shall not be required to amend this Permit to construct or 201 acquire Facilities within the Permit Area, provided that Grantee does not 202 expand its services beyond those described in Section 1.I of this Permit. 203

204 C. Concealment. At the City’s request, all Facilities shall be 205

concealed or enclosed as much as technologically feasible in an 206 equipment box, cabinet or other unit, in a design substantially similar to 207 that pictured in Exhibit B. All external cables and wires shall be 208 sheathed or enclosed in conduit so that wires are not visible or visually 209 minimized to the extent feasible. Grantee shall construct Grantee’s 210 conduits and standoffs (collectively, the “conduits”) that are attached to 211 the utility poles in accordance with KMC requirements and, whenever 212 technologically feasible, shall install Grantee’s Conduits so as to 213 minimize the visible impact of such conduits. 214 215 D. Graffiti and Vandalization. Grantee shall keep and maintain 216 all small cell equipment installed in the public right-of-way in 217 commercially reasonable condition and repair throughout the term of 218 this Permit. Any equipment that is vandalized, damaged or marked with 219 graffiti shall be repaired and/or cleaned within fourteen (14) days of 220 receipt of written notice. 221 222

E. Relocation - Generally. The City may require Grantee to 223 relocate Facilities within the Right-of-Way when reasonably necessary 224 for construction, alteration, repair or improvement of the Rights-of-Way 225 for the purpose of public health, welfare and safety including, but not 226 limited to, dedications of new Rights-of-Way and the establishment and 227 improvement thereof, widening and improvement of existing Rights-of-228 Way, street vacations, freeway construction, change or establishment 229 of street grade, or the construction of any Public Works Improvement 230

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Project, at no cost to the City, except as may be required by KMC 231 26.36.050. “Public Works Improvement Project” means any 232 construction, installation, relocation, undergrounding, expansion, 233 maintenance, repair or removal of roads, streets, sidewalks, parks, 234 curbs, gutters, storm drainage facilities, sewer lines, water utility lines, 235 poles, structures or other capital improvement project within the Permit 236 Area that is undertaken by or on behalf of the City and is funded by the 237 City (either directly with its own funds or with other public monies 238 obtained by the City). For the avoidance of doubt, the term “Public 239 Works Improvement Project” shall include any such capital improvement 240 project undertaken by the City which requires the relocation of Grantee’s 241 Facilities within the Permit Area, even if the capital improvement project 242 entails, in part, related work funded and/or performed by or for a third 243 party governmental entity under a valid interlocal agreement between 244 the City and such entity. 245

246 F. Relocation – Third Party Structures. If the request for 247

relocation from the City originates due to a Public Works Improvement 248 Project, in which structures or poles are either replaced or removed, 249 then Grantee shall relocate or remove its Facilities as required by the 250 City, and at no cost to the City. Grantee acknowledges and agrees, that 251 to the extent Grantee’s Small Cell Facilities are on poles owned by third 252 parties the City shall not be responsible for any costs associated with 253 requests for relocation which the City makes solely for aesthetic 254 purposes and where such request arises out of a Public Works 255 Improvement Project. 256

257 G. Relocation – Grantee Owned Structures. The cost of 258

relocation of any Grantee owned poles or structures shall be determined 259 in accordance with the requirements of RCW 35.99.060(3)(b), provided, 260 however, that the Grantee may opt to pay for the cost of relocating its 261 Small Cell Facilities in order to provide consideration for the City’s 262 approval to site a Small Cell Facility on Grantee owned structures or 263 poles in a portion of the Right of Way designated or planned for a Public 264 Works Improvement Project. Designation of the Right of Way for a 265 Public Works Improvement Project shall be undertaken in the City’s 266 Comprehensive Plan in accordance with the requirements of Ch. 35.70A 267 RCW. The Comprehensive Plan includes, but is not limited to the 268 Transportation element or Transportation Improvement Plan (TIP), 269 Capital Facilities element, utilities element and any other element 270 authorized by RCW 35.70A.070 and RCW 35.70A.080. The parties 271 acknowledge that this provision is mutually beneficial to the parties, as 272 the City may otherwise deny the placement of the Small Cell Facility at 273 a particular site because of the cost impact of such relocation and the 274 conflict with the City’s Comprehensive Plan. 275

276 H. Notice. The City’s decision to require the relocation of 277

Grantee’s Facilities shall be made in a reasonable, uniform and non-278

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discriminatory manner. Notice of such relocation shall be provided by 279 the City to Grantee consistent with state law, RCW Ch. 35.99. The City 280 shall attempt to provide as much advance notice as is feasible under the 281 circumstances. With the exception of emergency situations, the City will 282 attempt to provide Grantee with at least thirty (30) days advance notice 283 of the need to relocate. 284 285 I. Indemnification. The Grantee shall indemnify, hold harmless 286 and pay the costs of defending the City against any and all claims, suits, 287 actions, costs, expenses, damages, or liabilities for delays on City 288 construction projects caused by or arising out of the failure of the 289 Grantee to relocate its Facilities in a timely manner; provided, that the 290 Grantee shall not be responsible for damages due to delays caused 291 solely by the City, or circumstances beyond the control of the Grantee. 292 Grantee agrees to protect and save harmless the City from any customer 293 or third-party claims for service interruption or other losses in 294 connection with any such change or relocation. 295 296 J. Private Project. In the event the City orders the Grantee to 297 relocate its Facilities for a project which is primarily for private benefit, 298 Grantee may seek reimbursement from the private party or parties for 299 the cost of relocation in the same proportion as their contribution to the 300 total cost of the project, pursuant to RCW 35.99.060(4). 301 302 K. City’s Costs. If Grantee fails, neglects, or refuses to remove 303 or relocate its Facilities as directed by the City, then the City may 304 perform such work or cause it to be done, and the City’s full costs and 305 expenses shall be paid by Grantee. 306 307

L. Emergency. In the event of an unforeseen emergency that 308 creates a threat to public safety, health or welfare, the City may require 309 the Grantee to relocate its Facilities at its own expense, any other 310 portion of this Section notwithstanding. 311

312 M. Survival. The provisions of this 4 shall survive the expiration 313

or termination of this Permit during such time as Grantee continues to 314 have Facilities in the Rights-of-Way. 315 316 Section 5. Indemnification. 317 318

A. Grantee agrees to indemnify, defend, and hold the City 319 harmless as set forth in KMC 26.40.030. In addition, Grantee shall 320 indemnify, defend and hold the City, its agents, officers, employees, 321 volunteers and assigns harmless from and against any and all claims, 322 demands, liability, loss, cost, damage or expense of any nature 323 whatsoever, including all costs and reasonable attorney's fees, made 324 against them on account of injury, sickness, death or damage to persons 325 or property which is caused by or arises out of, in whole or in part, the 326

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acts, failures and/or omissions of Grantee or its agents, servants, 327 employees, contractors, subcontractors or assigns arising out of this 328 Permit. Further, Grantee shall indemnify, defend and hold harmless the 329 City, its officers, employees, agents, volunteers and representatives 330 from any and all claims, costs, judgments, awards or liability to any 331 person arising from radio frequency emissions or radiation emitted from 332 Grantee’s Facilities located in the Rights-of-Way, regardless of whether 333 Grantee’s equipment complies with applicable federal statutes and/or 334 FCC regulations related thereto. These indemnification obligations shall 335 extend to claims that are not reduced to a suit and any claims that may 336 be compromised, with Grantee’s prior written consent, prior to the 337 culmination of any litigation or the institution of any litigation. Provided, 338 however, such indemnification shall not extend to injury or damage 339 caused by the sole negligence or willful misconduct of the City, its 340 agents, officers, employees, volunteers or assigns. 341 342 B. In the event any such suit, claim or demand be presented to 343 or filed with the City, the City shall promptly notify Grantee thereof, and 344 Grantee shall have the right, at its election and at its sole cost and 345 expense, to settle and compromise such suit, claim or demand, or 346 defend the same at its sole cost and expense, by attorneys of its own 347 election. In the event that Grantee refuses the tender of defense in any 348 suit, claim or demand, as required pursuant to the indemnification 349 provisions within this Permit, and said refusal is subsequently 350 determined by a court having jurisdiction (or such other tribunal that 351 the parties shall agree to decide the matter), to have been a wrongful 352 refusal on the part of Grantee, Grantee shall pay all of the City’s 353 reasonable costs for defense of the action, including all expert witness 354 fees, costs, and attorney’s fees, and including costs and fees incurred 355 in recovering under this indemnification provision. If separate 356 representation to fully protect the interests of both parties is necessary, 357 such as a conflict of interest between the City and the counsel selected 358 by Grantee to represent the City, then upon the prior written approval 359 and consent of Grantee, which shall not be unreasonably withheld, the 360 City shall have the right to employ separate counsel in any action or 361 proceeding and to participate in the investigation and defense thereof, 362 and Grantee shall pay the reasonable fees and expenses of such 363 separate counsel, except that Grantee shall not be required to pay the 364 fees and expenses of separate counsel on behalf of the City for the City 365 to bring or pursue any counterclaims or interpleader action, equitable 366 relief, restraining order or injunction. The City’s fees and expenses shall 367 include all out-of-pocket expenses, such as consultants and expert 368 witness fees, and shall also include the reasonable value of any services 369 rendered by the counsel retained by the City. Each party agrees to 370 cooperate and to cause its employees and agents to cooperate with the 371 other party in the defense of any such claim and the relevant records of 372 each party shall be available to the other party with respect to any such 373 defense. 374

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375 C. Notwithstanding any other provisions of this Permit, Grantee 376

assumes the risk of damage to its Facilities located in the Public Ways 377 and upon City-owned property from activities conducted by the City, its 378 officers, agents, employees, volunteers, elected and appointed officials, 379 and contractors, except to the extent any such damage or destruction 380 is caused by or arises from any grossly negligent, willful, or criminal 381 actions on the part of the City, its officers, agents, employees, 382 volunteers, or elected or appointed officials, or contractors. Grantee 383 releases and waives any and all such claims against the City, its officers, 384 agents, employees, volunteers, or elected or appointed officials, or 385 contractors. Grantee further agrees to indemnify, hold harmless and 386 defend the City against any claims for damages, including, but not 387 limited to, business interruption damages, lost profits and consequential 388 damages, brought by or under users of Grantee’s Facilities as the result 389 of any interruption of service due to damage or destruction of Grantee’s 390 Facilities caused by or arising out of activities conducted by the City, its 391 officers, agents, employees or contractors, except to the extent any 392 such damage or destruction is caused by or arises from the gross 393 negligence or any willful misconduct on the part of the City, its officers, 394 agents, employees, volunteers, or elected or appointed officials, or 395 contractors 396

397 D. Survival. The provisions of this Section 5 shall survive the 398

expiration, revocation, or termination of this Permit. 399 400 Section 6. Default. 401 402

A. If Grantee shall fail to comply with any of the provisions of 403 this Permit, unless otherwise provided in this Permit, the City may, in 404 addition to the remedies provided in KMC Chapter 26.44, serve upon 405 Grantee a written order to comply within thirty (30) days from the date 406 such order is received by Grantee. If Grantee is not in compliance with 407 this Permit after expiration of the thirty (30) day period, the City may 408 act to remedy the violation and may charge the reasonable costs and 409 expenses of such action to Grantee. The City may act without the thirty 410 (30) day notice in case of an emergency. If any failure to comply with 411 this Permit by Grantee cannot be corrected with due diligence within 412 said thirty (30) day period, then the time within which Grantee may so 413 comply shall be extended for such time as may be reasonably necessary 414 and so long as Grantee works promptly and diligently to effect such 415 compliance. If Grantee is not in compliance with this Permit, and is not 416 proceeding with due diligence in accordance with this section to correct 417 such failure to comply, then the City may in addition, by ordinance and 418 following written notice to Grantee, declare an immediate forfeiture of 419 this Permit. 420 421

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B. In addition to other remedies provided in KMC Chapter 26.44, 422 this Permit, or otherwise available at law, if Grantee is not in compliance 423 with requirements of the Permit, and if a good faith dispute does not 424 exist concerning such compliance, the City may place a moratorium on 425 issuance of pending Grantee right-of-way use permits until compliance 426 is achieved. 427 428 Section 7. Nonexclusive Permit. This Permit is not and shall not 429 be deemed to be an exclusive Permit. This Permit shall not in any 430 manner prohibit the City from granting other and further permits over, 431 upon, and along the Permit Area, provided such other permits do not 432 unreasonably interfere with Grantee’s use and placement of its Facilities 433 in any Rights-of-Way and/or Permit Area. This Permit shall not prohibit 434 or prevent the City from using the Permit Area or affect the jurisdiction 435 of the City over the same or any part thereof. Nothing within this 436 Section limits Grantee’s obligations to indemnify, defend and hold the 437 City harmless as provided in Section 5 herein. 438 439 Section 8. Permit Term. 440 441

A. This Permit is and shall remain in full force and effect for a 442 period of ten (10) years from and after the effective date of the 443 Ordinance, provided that the term may be extended for two (2) 444 additional five (5) year terms upon the agreement of Grantee and the 445 City not more than one hundred eighty (180) days and nor less than 446 ninety (90) days from the expiration of the current Permit; and provided 447 further, however, Grantee shall have no rights under this Permit nor 448 shall Grantee be bound by the terms and conditions of this Permit, 449 unless Grantee shall, within thirty (30) days after the effective date of 450 the Ordinance, file with the City its written acceptance of this Permit, in 451 a form acceptable to the City Attorney. When an extension is proposed 452 by the Grantee, the Grantee shall provide proof to the City that all 453 existing Facilities are in compliance with design standards set forth 454 herein as illustrated in Exhibit B, or as subsequently approved by the 455 City. 456

457 B. If the City and Grantee fail to formally renew this Permit prior 458

to the expiration of its term or any extension thereof, this Permit shall 459 automatically continue in full force and effect until renewed or until 460 either party gives written notice at least one hundred eighty (180) days 461 in advance of intent not to renew this Permit. 462 463 Section 9. Compliance with Codes and Regulations. 464 465 A. The rights, privileges and authority herein granted are 466 subject to and governed by this Ordinance and all other applicable 467 ordinances and codes of the City of Kirkland (collectively, the “Codes”), 468 as they now exist or may hereafter be amended, including but not 469

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limited to, the provisions of Kirkland Municipal Code Title 26, Title 19, 470 Title 5, and Kirkland Zoning Code Title 117. Nothing in this Ordinance 471 limits the City's lawful power to exercise its police power to protect the 472 safety and welfare of the general public. Grantee shall, at all times, 473 employ professional care and shall install and maintain and use industry-474 standard methods for preventing failures and accidents that are likely 475 to cause damage, injuries, or nuisances to the public. All structures and 476 all lines, equipment, and connections in, over, under, and upon the 477 Rights-of-Ways, wherever situated or located, shall at all times be kept 478 and maintained in a safe condition. Any location, relocation, erection or 479 excavation by Grantee shall be performed by Grantee in accordance with 480 applicable federal, state and city rules and regulations, including the 481 City’s Public Works Pre-Approved Plans and Policies, and any required 482 permits, licenses or fees, and applicable safety standards then in effect 483 (collectively, “Regulations”). Notwithstanding the foregoing, Codes and 484 Regulations shall not include any amended law, rule or regulation or 485 newly created law, rule or regulation that violates Grantee’s rights to 486 continue or modify existing non-conforming uses, or any other changes 487 to laws, rules or regulations, which do not apply to previously 488 constructed real estate improvements or wireless communication 489 facilities. 490 491 B. In the event that any territory served by Grantee is annexed 492 to the City after the effective date of this Permit, such territory shall be 493 governed by the terms and conditions contained herein upon the 494 effective date of such annexation. 495 496

C. Grantee hereby warrants that its operations as authorized 497 under this Permit are those of a telephone business as defined in RCW 498 82.16.010, or service provider as defined in RCW 35.21.860. As a result, 499 the City will not impose a Permit fee under the terms of this Permit, 500 other than as described herein. The City hereby reserves its right to 501 impose a Permit fee on Grantee if Grantee’s operations as authorized by 502 this Permit change such that the statutory prohibitions of RCW 503 35.21.860 no longer apply, or if statutory prohibitions on the imposition 504 of such fees are removed. In either instance, the City also reserves its 505 right to require that Grantee obtain a separate Permit for its change in 506 use. Nothing contained herein shall preclude Grantee from challenging 507 any such new fee or separate agreement under applicable federal, 508 State, or local laws. 509

510 D. Grantee acknowledges that certain of its operations within 511

the City constitute a telecommunication business subject to the utility 512 tax imposed pursuant to the Kirkland Municipal Code Chapter 5.08. 513 Grantee stipulates and agrees that certain of its business activities are 514 subject to taxation as a telecommunication business and that Grantee 515 shall pay to the City the rate applicable to such taxable services under 516 Kirkland Municipal Code Chapter 5.08, and consistent with state and 517

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federal law. The parties agree however, that nothing in this Permit shall 518 limit the City's power of taxation as may exist now or as later imposed 519 by the City. This provision does not limit the City's power to amend 520 Kirkland Municipal Code Chapter 5.08 as may be permitted by law. 521 522 Section 10. Undergrounding. Grantee acknowledges the City’s 523 policy of undergrounding of Facilities within the Permit Area. Grantee 524 will cooperate with the City in the undergrounding of Grantee's new and 525 existing Facilities within the Permit Area. If, during the term of this 526 Permit, the City shall direct Grantee to underground Facilities within any 527 Permit Area, such undergrounding shall be at no cost to the City, except 528 as may be provided in RCW Chapter 35.99. Grantee shall comply with 529 all federal, state, and City regulations on undergrounding. If the City 530 undertakes any street improvement which would otherwise require 531 relocation of Grantee's above-ground facilities, the City may, by written 532 notice to Grantee, direct that Grantee convert any such Facilities to 533 underground Facilities. Notwithstanding anything to the contrary 534 contained herein, the undergrounding requirement shall not apply to 535 that portion of the Facilities that are required to remain above ground 536 in order to be functional, but the Grantee will be responsible for 537 providing such needed facilities to maintain the above ground function. 538 539 Section 11. City Approvals and Permits. 540 541

A. City Permits and/or Approvals Required. The granting of this 542 Permit is not a substitute for any other City required permits and/or 543 approvals to construct Grantee’s Facilities in the Rights-of-Way (“City 544 Approvals”). These City Approvals do not grant general authorization 545 to enter and utilize the Rights-of-Way but rather grant Grantee 546 permission to build its specific Small Cell Facilities. Therefore, City 547 Approvals are not subject to the thirty (30) day issuance requirement 548 described in RCW 35.99.030. The parties recognize that this provision 549 is specifically negotiated as consideration for designating the entire City 550 as the Permit Area. Such City Approvals shall be issued consistent with 551 the Codes, state laws, and federal laws governing wireless 552 communication facilities. This Section does not affect the thirty (30) 553 day issuance requirement described in RCW 35.99.030 required for use 554 permits such as Right-of-Way use permits and traffic control permits. 555

556 B. Preference for Existing Infrastructure; Site Specific 557

Agreements. Grantee shall utilize existing infrastructure in the City 558 whenever possible and consistent with the design, concealment and 559 siting of the City Codes, unless otherwise agreed to with the City. In 560 the event that existing infrastructure is not available or feasible for a 561 Grantee’s Facilities, then Grantee may request the placement of new or 562 replacement structures in the Rights-of-Way consistent with the 563 requirements of the City’s Codes. Grantee acknowledges and agrees 564 that if Grantee requests to place new or replacement structures, as 565

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described in RCW 35.21.860, in the Rights-of-Way or place Facilities on 566 City-owned structures, which are not otherwise covered under a master 567 lease agreement with the City, then Grantee may be required to enter 568 into a site specific agreement consistent with RCW 35.21.860 in order 569 to construct such Facilities in the Right of Way. Such agreements may 570 require a site specific charge to the City. The approval of a site specific 571 agreement is at the discretion of each of the parties thereto. 572

573 C. Concealment. Grantee shall construct its Facilities consistent 574

with the concealment or stealth requirements as described in the Codes 575 or in the applicable permit(s), in order to minimize the visual impact of 576 such Facilities. 577 578 Section 12. Record of Installations and Service. 579 580

A. With respect to excavations by Grantee and the City within 581 the Permit Area, Grantee and the City shall each comply with its 582 respective obligations pursuant to Chapter 19.122 RCW and any other 583 applicable state law. 584 585 B. Upon written request of the City, Grantee shall provide the 586 City with the most recent update available of any plan of potential 587 improvements to its Facilities within the Permit Area; provided, 588 however, any such plan so submitted shall be for informational purposes 589 within the Permit Area, nor shall such plan be construed as a proposal 590 to undertake any specific improvements within the Permit Area. The City 591 agrees to keep confidential any such plans to the extent permitted by 592 law. 593 594 C. Following any construction, Grantee shall provide the City 595 with as-built drawings and maps of the precise location of any Facilities 596 placed by Grantee in any Right of Way. These plans and maps shall be 597 provided at no cost to the City and shall include hard copies and/or 598 digital copies in a format specified by the City. Further, such maps and 599 as-builts shall be made available by Grantee to the City within 10 (ten) 600 working days of the City’s written request. Grantee hereby warrants the 601 accuracy of all maps and as-builts provided to the City. 602 603 D. Information Available for Inspection. All books, records, 604 maps, and other documents maintained by Grantee with respect to its 605 Facilities within the Rights-of-Way shall be made available for inspection 606 by the City at reasonable times and intervals; provided, however, that 607 nothing in this paragraph shall be construed to require Grantee to 608 violate state or federal law regarding customer privacy, nor shall 609 paragraph be construed to require Grantee to disclose proprietary or 610 confidential information without adequate safeguards for its confidential 611 or proprietary nature. Unless otherwise permitted or required by State 612 or federal law, nothing in this paragraph shall be construed as 613

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permission to withhold relevant customer data from the City that the 614 City requests in conjunction with a tax audit or review; provided, 615 however, Grantee may redact identifying information such as names, 616 street addresses (excluding City and zip code), Social Security Numbers, 617 or Employer Identification Numbers related to any confidentiality 618 agreements Grantee has with third parties. 619 620 E. Confidential and/or Proprietary Information. Grantee shall 621 not be required to disclose information that it reasonably deems to be 622 proprietary or confidential in nature; provided, however, Grantee shall 623 disclose such information to comply with a utility tax audit. Grantee 624 shall be responsible for clearly and conspicuously identifying the work 625 as confidential or proprietary, and shall provide a brief written 626 explanation as to why such information is confidential and how it may 627 be treated as such under State or federal law. In the event that the 628 City receives a public records request under Chapter 42.56 RCW or 629 similar law for the disclosure of information Grantee has designated as 630 confidential, trade secret, or proprietary, the City shall promptly provide 631 written notice of such disclosure so that Grantee can take appropriate 632 steps to protect its interests. 633 634 F. Public Records Act Compliance. Nothing herein prohibits the 635 City from complying with Chapter 42.56 RCW or any other applicable 636 law or court order requiring the release of public records, and the City 637 shall not be liable to Grantee for compliance with any law or court order 638 requiring the release of public records. The City shall comply with any 639 injunction or court order obtained by Grantee that prohibits the 640 disclosure of any such confidential records; however, in the event a 641 higher court overturns such injunction or court order and such higher 642 court action is or has become final and non-appealable, Grantee shall 643 reimburse the City for any fines or penalties imposed for failure to 644 disclose such records as required hereunder within sixty (60) days of a 645 request from the City. 646 647 G. Annual Audit. On an annual basis, upon thirty (30) days prior 648 written notice, the City shall have the right to conduct an independent 649 audit of Grantee's records reasonably related to the administration or 650 enforcement of this Permit, in accordance with GAAP. If the audit shows 651 that tax or fee payments have been underpaid by three percent (3%) 652 or more, Grantee shall pay the total cost of the audit. 653 654

Section 13. Shared Use of Excavations and Trenches. 655 656 A. If either the City or Grantee shall at any time after installation 657

of the Facilities plan to make excavations in the area covered by this 658 Permit and as described in this Section, the party planning such 659 excavation shall afford the other, upon receipt of written request to do 660 so, an opportunity to share such an excavation, provided that: (1) such 661

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joint use shall not unreasonably delay the work of the party causing the 662 excavation to be made or unreasonably increase its costs; (2) such joint 663 use shall be arranged and accomplished on terms and conditions 664 satisfactory to both parties. In addition, pursuant to RCW 35.99.070, 665 the City may request that Grantee install additional conduit, ducts and 666 related access structures for the City pursuant to contract, under which 667 Grantee shall recover its incremental costs of providing such facilities to 668 the City. 669 670 B. The City reserves the right to require Grantee to joint trench 671 with other Grantees if both entities are anticipating trenching within the 672 same general area and provided that the terms of this Section are met. 673 674 Section 14. Insurance. 675 676 A. Grantee shall procure and maintain for the duration of this 677 Permit, insurance against claims for injuries to persons or damage to 678 property which may be caused, in whole or in part, by the performance 679 of work under this Permit by Grantee, its agents, representatives or 680 employees in the amounts and types set forth below. Any policy of 681 insurance shall be written on an occurrence basis. 682 683

(1) Commercial general liability insurance shall be 684 written on ISO occurrence form CG 00 01 or its equivalent 685 and shall cover liability arising from bodily injury (including 686 death) and property damage; including premises 687 operation, products and ongoing and completed operations 688 and explosion, collapse and underground coverage 689 extensions. Commercial General Liability insurance shall be 690 written with limits of $5,000,000 per occurrence and 691 $10,000,000 general aggregate and a $2,000,000 products 692 completed operations aggregate limit. The City shall be 693 included as an additional insured as their interest may 694 appear under this Permit using ISO CG 20 37 Additional 695 Insured-Completed Operations endorsement or a 696 substitute endorsement or endorsements providing at least 697 as broad coverage; 698

(2) Commercial Automobile liability insurance covering 699 all owned, non-owned and hired vehicles. Coverage shall 700 be at least as broad as ISO form CA 00 01 or its equivalent. 701 Commercial Auto Liability shall be written with a combined 702 single limit of $1,000,000 per accident for bodily injury and 703 property damage; and 704

(3) Worker’s compensation within statutory limits and 705 employer’s liability insurance with limits of $1,000,000 for 706 each accident/disease/policy limit. 707

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708 B. The insurance policies required by this section shall be 709

maintained at all times by the owner. 710 711

C. Upon receipt of notice from its insurer(s) Grantee shall 712 endeavor to provide the City with thirty (30) days prior written 713 notice of cancellation of any policy required herein that is not 714 replaced. 715 716 D. Grantee’s insurance coverage shall be primary insurance as 717 respects the City. Any insurance, self-insurance or insurance pool 718 coverage maintained by the City shall be in excess of Grantee's 719 insurance and shall not contribute with it. 720 721 E. Grantee shall furnish the City with an ACORD Form certificate 722 of insurance coverage and a copy of the additional insured endorsement 723 before issuance of the Permit. 724 725 F. Grantee shall have the right to self-insure any or all of the 726 above-required insurance. Any such self-insurance is subject to 727 approval by the City. 728 729 G. Grantee’s maintenance of insurance as required by this 730 Permit shall not be construed to limit the liability of Grantee to the 731 coverage provided by such insurance, or otherwise limit City’s recourse 732 to any remedy to which the City is otherwise entitled at law or in equity. 733 734 H. Insurance is to be placed with insurers with a current A.M. 735 Best rating of not less than A-:VII. 736 737

I. Failure on the part of the Grantee to maintain the insurance 738 as required shall constitute a material breach of the Permit, upon which 739 the City may, after giving five business days’ notice to the Grantee to 740 correct the breach, immediately terminate the Permit. 741 742 Section 15. Assignment. 743 744

A. All of the provisions, conditions, and requirements herein 745 contained shall be binding upon Grantee, and no right, privilege, license 746 or authorization granted to Grantee hereunder may be assigned or 747 otherwise transferred without the prior written authorization and 748 approval of the City, which the City may not unreasonably withhold, 749 condition or delay. Notwithstanding the foregoing, Grantee, without the 750 consent of, but upon notice to the City, may assign this agreement in 751 whole or in part to: (a) an Affiliate (as defined in this Permit); or (b) 752 the surviving entity in the event of a merger or acquisition of 753 substantially all of Grantee’s assets in the FCC Cellular Market Area for 754 King County, Washington (CMA 20). 755

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756 B. Grantee may lease the Facilities or any portion thereof to 757 another or provide capacity or bandwidth in its Facilities to another, 758 provided that: Grantee at all times retains exclusive control over such 759 Facilities and remains responsible for locating, servicing, repairing, 760 relocating or removing its Facilities pursuant to the terms and conditions 761 of this Permit. 762 763 Section 16. Abandonment and Removal of Facilities. Grantee’s 764 Facilities may be considered abandoned pursuant to KMC Ch. 26.20. In 765 the event of abandonment, the parties shall refer to their options in KMC 766 Ch. 26.20. 767 768 Section 17. One Call Locator Service. Prior to doing any work 769 in the Rights-of-Way, the Grantee shall follow established procedures, 770 including contacting the Utility Notification Center in Washington and 771 comply with all applicable State statutes regarding the One Call Locator 772 Service pursuant to Chapter 19.122 RCW. Further, upon request, by 773 the City or a third party, Grantee shall locate its Facilities consistent with 774 the requirements of Chapter 19.122 RCW. The City shall not be liable 775 for any damages to Grantee’s Facilities or for interruptions in service to 776 Grantee’s customers that are a direct result of Grantee’s failure to locate 777 its Facilities within the prescribed time limits and guidelines established 778 by the One Call Locator Service regardless of whether the City issued a 779 permit. 780 781 Section 18. Miscellaneous. 782 783

A. If any term, provision, condition or portion of this Permit shall 784 be held to be invalid, such invalidity shall not affect the validity of the 785 remaining portions of this Permit which shall continue in full force and 786 effect. The headings of sections and paragraphs of this Permit are for 787 convenience of reference only and are not intended to restrict, affect, 788 or be of any weight in the interpretation or construction of the provisions 789 of such sections of paragraphs. 790 791 B. Grantee shall pay for the City's reasonable administrative 792 costs in drafting and processing this Ordinance and all work related 793 thereto, provided that such costs shall not exceed Ten Thousand Dollars 794 ($10,000). Grantee shall further be subject to all permit fees associated 795 with activities and the provisions of any such permit, approval, license, 796 agreement of other document, the provisions of this Permit shall control. 797 798 C. Failure of either party to declare any breach or default under 799 this Permit or any delay in taking action shall not waive such breach or 800 default, but that party shall have the right to declare any such breach 801 or default at any time. Failure of either party to declare one breach or 802

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default does not act as a waiver of that party’s right to declare another 803 breach or default. 804 805 Section 19. Notice. Any notice or information required or 806 permitted to be given to the parties under this Permit may be sent to 807 the following addresses unless otherwise specified: 808 809 CITY: 810 City of Kirkland 811 Public Works Director 812 123 Fifth Ave. 813 Kirkland, WA 98033 814 815 GRANTEE: 816 New Cingular Wireless PCS, LLC 817 Attn: Network Real Estate Administration 818 Site No. City of Kirkland Wireless Master Use Permit (WA) 819 1025 Lenox Park Blvd NE, 3rd Floor 820 Atlanta, GA 30319 821 822 With a Copy to: 823 New Cingular Wireless PCS, LLC 824 Attn: AT&T Legal Dept – Network Operations 825 Site No. City of Kirkland Master Use Permit (WA) 826 208 S. Akard Street 827 Dallas, TX 75202-4206 828 829 Notice shall be deemed given upon receipt in the case of personal 830 delivery, three days after deposit in the United States Mail in the case 831 of regular mail, or the next day in the case of overnight delivery. 832 833 Section 20. Effective date. This Ordinance, being in compliance 834 with RCW 35A.47.040, shall be in force and effect five days from and 835 after its passage by the Kirkland City Council and publication pursuant 836 to Section 1.08.017 Kirkland Municipal Code in the summary form 837 attached to the original of this ordinance and by this reference approved 838 by the City Council. 839

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O-4714

19

Passed by majority vote of the Kirkland City Council in open 840 meeting this _____ day of ______________, 2020. 841 842 Signed in authentication thereof this _____ day of 843 ________________, 2020. 844 __________________________

Penny Sweet, Mayor Attest: _________________________________ Kathi Anderson, City Clerk Approved as to Form: _________________________________ Kevin Raymond, City Attorney

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pole. The solution is intended to house and conceal multiple radios and any other

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outdoor small cell site.

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System dimensioning and configuration

Base Size / Height Options 26 in Square x 4ft Tall Equipment Cabinet Base Overall AGL Standard Heights: 20, 25, 30, 35 & 40ft Galvanized per ASTM A123/A123M finish for all steel components;

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CONSTRUCTION AND DESIGN -MODULAR, CONFIGURABLE DESIGN -STEEL POLE MATERIAL TO BE MINIMUM ASTM A500/ A500M WITHALL OTHER STEEL TO BE MINIMUM ASTM A36. MILL CERTIFICATES WILL BE PROVIDED FOR ALL STRUCTURAL COMPONENTS . -GALV /POWDER FINISH PER GR-487-CORE SEC. 3.6, 3.38

(COLOR TO BE SPECIFIED BY CUSTOMER) -ACOUSTIC NOISE ABATEMENT CONSIDERATIONS TAKEN

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(COLOR TO BE SPECIFIED BY CUSTOMER) -ACOUSTIC NOISE ABATEMENT CONSIDERATIONS TAKEN

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ORDER/QUOTE #

19-0870_001 DESCRIPTION

CONEIPENUAL INFORMATION 2X RF BAY + PX BAY 14IN SMARTST ACK, THIS DOCUMENT AND THE INFORMATION

CONTAINED HEREIN IS THE CONFIDENT AL TRADE SECRET PROPERTY OF SABRE COMMU NICATIONS

CORPORATION ("SABRE") AND MUST NOT BE REPRODUCED, COPIED OR USED, IN WHOLE OR IN PART, FOR ANY PURPOSE WITHOUT THE PRIOR

WRITTFN r:ONSFNT OF SARRF

DATE 6/ 15/201 8 MONOLITHIC EXT. POLE, WA SITES DRAWN BY:

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PUBLICATION SUMMARY OF ORDINANCE NO. O-4714

AN ORDINANCE OF THE CITY OF KIRKLAND RELATING TO GRANTING NEW CINGULAR WIRELESS PCS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, A NON-EXCLUSIVE COMMUNICATIONS MASTER USE PERMIT FOR THE RIGHT, PRIVILEGE, AND AUTHORITY TO MAKE USE OF THE PERMIT AREA FOR COMMUNICATIONS PURPOSES. SECTIONS 1 - 19. Issues a right of way Master Use Permit to New Cingular Wireless PCS, LLC, a Delaware Limited Liability Company, for wireless communications purposes and sets forth the terms and conditions of the Permit. SECTION 20. Authorizes publication of the ordinance by summary, which summary is approved by the City Council pursuant to Section 1.08.017 Kirkland Municipal Code and establishes the effective date as five days after publication of summary. The full text of this Ordinance will be mailed without charge to any person upon request made to the City Clerk for the City of Kirkland. The Ordinance was passed by the Kirkland City Council at its meeting on the _____ day of _____________________, 2020. I certify that the foregoing is a summary of Ordinance __________ approved by the Kirkland City Council for summary publication. ________________________________ Kathi Anderson, City Clerk


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CITY OF KIRKLAND City Manager's Office 123 Fifth Avenue, Kirkland, WA 98033 425.587.3001 www.kirklandwa.gov

MEMORANDUM


From: James Lopez, Assistant City Manager Ellen R. Miller-Wolfe, Regional Business Partnership Manager Mara Isaacson, Innovation Intern


Subject: Regional Economic Development Partnerships: Startup 425 and the Innovation Triangle

RECOMMENDATION:

It is recommended that the City Council receive this report on regional economic development partnerships administered by the City of Kirkland; Startup 425 and the Innovation Triangle.

BACKGROUND:

Startup 425: Startup 425 is a regional economic development partnership designed to support entrepreneurs and small businesses, foster sustained economic growth, and create jobs. It is an initiative of five Eastside cities; Bellevue, Kirkland, Issaquah, Redmond, and Renton, which entered into an Interlocal Agreement in 2019 following three years of collaboration. It is operated by the economic development offices in each of the partner cities with support from the Port of Seattle, King County Library System (KCLS), and the Service Corps of Retired Executives (SCORE). It is fully funded by the City of Kirkland, a Port of Seattle Grant, and partner city contributions. First led by the City of Bellevue, the program is currently administered by the City of Kirkland (2019-2020).

Two key reports guide Startup 425. The first is a ‘Long-Range Planning Recommendations for Startup 425’ report prepared under the auspices of the University of Washington’s Livable City Year 2018-2019 program. The second is a ‘Five-Year Strategic Plan’ developed by the City of Kirkland based upon recommendations from its city partners and an advisory committee in 2019. As administrator of the program, the City of Kirkland also prepares an annual report and convenes at least four partner meetings annually.

Startup 425 currently offers 42 workshops over two sessions, spring and fall, for a 100-level ‘Foundations of Business’ series. These are free to all, seeking to expand access and business ownership to diverse and underserved communities. Classes consistently have a majority of women and non-white attendees as well most attendees representing a new or soon to be started business. Classes are offered in the libraries of each of the five participating cities on topics such as preparing a business plan, marketing, finance, and networking. Startup 425 also offers a 200-level ‘Small Business Essentials’ series at an Eastside co-working space. In addition

Council Meeting: 1/7/2020 Agenda: Business Item #: 11. c.

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to educational opportunities, Startup 425 mentors local businesses and refers them to financial, real estate, networking, and other regional business resources. Startup 425 routinely participates in business events to promote the alliance and dispense information, such as the ‘Women in Business Conference’ in September 2019 where it partnered with SCORE to host 150 women-owned businesses.

The City of Kirkland, acting as the Startup 425 Administrator oversees the marketing, scheduling, operation, and survey documentation of the 100 and 200-level workshops. Kirkland Staff also represents Startup 425 at trade shows, and other business events. The City of Kirkland is the lead on new accelerator program and other 2020 workplan items.

Innovation Triangle: The Innovation Triangle is a partnership of Bellevue, Redmond, and Kirkland bound by a 2019 interlocal agreement. It was established in 2016 to recruit foreign and domestic businesses in the information, communication, and technology (ICT) sector to the Eastside of Lake Washington and to act as a bridge between the U.S. and global ICT markets. The goal is to grow targeted industry clusters to promote the region as a global hub for innovation, international trade and investment. Innovation Triangle partners share duties and costs of activities.

The most recent reporting on output for the Innovation Triangle was $48.2 billion total and $21.5 billion in the ICT sector alone. This makes the Innovation Triangle one of the most dynamic regional economies in the country with 23% of residents working in science and engineering related fields and 61% of residents holding at least a bachelor’s degree, almost twice the state-wide average. Targeted clusters include:

• Enterprise software• Interactive media (gaming and AR/VR)• Commercial space• Big-Data• Artificial intelligence & machine learning

Innovation Triangle partners engage and participate in the following activities: • Maintain and update website and other communication strategies• Attend conferences and tradeshows• Recruit and assist companies interested in locating in the Innovation Triangle• Leverage the talent and other attributes of the Innovation Triangle for other needs such

as transportation and housing affordability• Report annually to city leadership

A cornerstone each year is the attendance of the Innovation Triangle partners at the Select USA Investment Summit presented by the U.S. Department of Commerce to promote direct investment by countries outside of the U.S. Last year marked the fourth year of Innovation Triangle participation at the Summit where meetings were held with 35 business and trade investment organizations with an ICT focus and interest in locating on the Eastside. Also in 2019, the Innovation Triangle welcomed delegations of businesses interested in our region from Poland, India, Japan, and Great Britain.

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Next Steps:

Startup 425:

One major product of Startup 425 in 2019 was the development of a ‘Five Year Strategic Plan.’ Tasked with the lead for the 5-city Startup 425 alliance and the preparation of the 5-year strategy in 2019, the City of Kirkland researched and solicited input from business services providers and small businesses to identify gaps that need to be addressed to provide for Eastside businesses. The City of Kirkland convened and received input from an Advisory Committee that included business service providers, economic empowerment interests, businesses, academics and others, solicited recommendations from city partners, researched business services in other regions, solicited input through an online demand assessment survey, and held individual interviews with practitioners, academics and local and State officials throughout the Puget Sound region. The results of this 6-month work plan effort are summarized in the strategic plan included as Attachment A.

The primary recommendation is an enriched Startup 425 business curriculum. This curriculum provides information through experienced mentors to beginner, intermediate, and advanced businesses of different sizes and business types. It suggests utilizing classes, networking events, one-on-one mentoring, and virtual applications such as webinars to teach business education. This tiered curriculum translates into 100, 200 and 300 levels although businesses can enter at any level to satisfy their informational needs.

Paired with curriculum, this strategic plan recommends that Startup 425 investigate working with collaborative work spaces with a focus on offering the curriculum to businesses near to where they are located and partnering with public and private facility operators to realize this objective.

In 2020, Startup 425 will continue and enhance the 100 and 200-level offerings and, per the recommendations of the ‘Five-Year Strategic Plan’, introduce a pilot 300-level business accelerator program on the Eastside. This program will enroll 10-20 businesses with a proven track record in a ‘bootcamp’ in partnership with Bellevue College to help these businesses grow by providing education, mentorship, access to capital, and other resources. The City of Kirkland has contracted with a Bellevue College faculty member to design the accelerator curriculum. Bellevue College will provide the facility and other resources necessary to launch the first class in September 2020. If successful, the accelerator could be replicated at other institutions on the Eastside such as Lake Washington Institute of Technology, Renton Technical College or private coworking spaces. In addition to the accelerator, Startup 425 will work in partnership with local business organizations to present a job fair and a ‘Growing the Business Mentor Pool’ event, as well as participating in other area business events.

The Startup 425 alliance will deliver this 2020 workplan with current resources and in partnership with SCORE, KCLS, and Bellevue College.

Attachment A: Startup 425 5-Year Strategic Plan

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Innovation Triangle: The Innovation Triangle will continue the above activities in 2020. Partners will expand to attend niche trade shows in the ICT cluster. Additionally, the Innovation Triangle will update communication tools including the development of a 2-5 minute video and update its social media presence. As members of the newly created Greater Seattle Partnership(GSP) the Innovation Triangle partner cities will benefit from additional access to foreign business delegations seeking to locate or invest in our region. The City of Kirkland will satisfy its partnership obligations to the Innovation Triangle with existing resources. Attachment B: Innovation Triangle 2020 Work Plan

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Attachment AE-

2

Executive Summary

Background

Startup 425 is a partnership of the five biggest cities on Seattle’s Eastside (Bellevue, Kirkland,

Issaquah, Redmond, and Renton) designed to support entrepreneurs and small businesses, foster

sustained economic growth, and create jobs. These five city governments signed an Interlocal

Agreement (ILA) in 2019 to collaborate on the provision of services to Eastside entrepreneurs

and small businesses. The program is operated through the economic development offices in

each of the cities with support from the Port of Seattle, KCLS and SCORE. The program has

been in existence for 4 years. First led by the City of Bellevue, the program is now administered

by the City of Kirkland.

In general, the partnership is focused on developing and operating training, and mentoring

opportunities for early to mid-stage entrepreneurs with a focus on underserved nontraditional

businesses. Wherever possible, the organization partners with other providers to extend its reach,

especially with KCLS and SCORE.

2019 Accomplishments

In 2019, while preparing this strategic plan, Startup 425 has continued to expand. A list of

accomplishments includes but is not limited to:

• Continued business mentorship by economic development offices in all five cities with

special thanks to Parteek Singh, SBDC consultant to the cities of Redmond and Bellevue

and Duncan Milloy of Milloy & Associates, which is based in Kirkland and assists clients

in all five cities.

• Presence by staff at business trade shows throughout the year and throughout the Eastside

to reach potential clients.

• Presentation of Fall and Spring Foundations workshops in all five communities.

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STARTUP425

3

• Piloting of 200 level Small Business Essentials workshop series at Cowork Box in

Bellevue.

• Partnering with SCORE on “Women in Business Conference”, September 13, 2019 on

Mercer Island, that provided business information to 150 attendees.

• Initial work on commercial displacement of small businesses and remedies including

convening a multi-jurisdictional discussion group followed by a review of how cities

zone for co-working space and ways of incorporating this use (with its potential

additional customers) to support existing retail businesses.

• Adoption of an Interlocal Agreement between the five cities.

• Development of a Five-Year Strategic Plan

Five-Year Strategic Plan

Startup 425 is looking to the future to expand, and to help entrepreneurs and startups develop and

sustain their businesses in the next five years. The final ‘Livable City Year 2018-2019’ report

from the City of Bellevue on the Long-Range Planning Recommendations for Startup 425 found

that on the:

“Root Causes of Business Failure and Challenges of Entrepreneurship, there are two root

causes that lead to business failure: a lack of appropriate business education, and a lack of

resources or ability to find resources. About 60% of business owners report having difficulty

understanding business regulations and law, and 85% of business owners do not have

business degrees.”

Startup 425 will therefore focus on business education and training. This expands upon our

original focus of lifting the barriers to business education for diverse and underserved businesses

on the Eastside, with a new initiative to accelerate businesses to triple their gross revenues within

three years, to secure needed capital, and to create jobs in the partner communities. This strategic

plan offers a systematic approach to fulfil these goals and to identify, enhance and accelerate

businesses in our region.

Tasked with the lead for the 5-city Startup 425 alliance (the cities of Bellevue, Kirkland,

Issaquah, Redmond and Renton), and the preparation of a 5-year strategy in 2019, the City of

Kirkland researched and solicited input from business services providers and small businesses to

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4

identify gaps that need to be addressed to provide for Eastside businesses. The City of Kirkland

convened and received input from an Advisory Committee that included business service

providers, economic empowerment interests, businesses, academics and others, solicited

recommendations from city partners, researched business services in other regions, solicited

input through an online demand assessment survey, and held individual interviews with

practitioners, academics and local and State officials throughout the Puget Sound region. The

results of this 6-month work plan effort are summarized in the strategic plan that follows.

The primary recommendation is an enriched Startup 425 business curriculum. This curriculum

provides information through experienced mentors to beginner, intermediate, and advanced

businesses of different sizes and business types. It suggests utilizing classes, networking events,

one-on-one mentoring, and virtual applications such as webinars to teach business education.

This tiered curriculum translates into 100, 200 and 300 levels although businesses can enter at

any level to satisfy their informational needs.

Paired with curriculum, this strategic plan recommends that Startup 425 investigate working with

collaborative work spaces with a focus on offering the curriculum to businesses near to where

they are located and partnering with public and private facility operators to realize this objective.

The strategic plan recommends the enrichment and expansion of the curriculum to address

different business types, business maturity, cultural backgrounds and learning styles. This will

require the identification of partnerships with co-working space providers to deliver the enriched

curriculum to members in a collaborative space while also enabling meetups and other events.

Secondary recommendations endorsed by the Advisory Committee that are simpler to execute

included:

• A membership portal to provide easy access to resources in the business services Eastside

ecosystem

• Enrichment of the mentor pool

• Job fairs to connect startup businesses with employees

• Hackathon and pitch events to attract entrepreneurs to Start425 programs

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5

Startup 425 will maintain existing partnerships such as Service Corps of Retired Executives

(SCORE), King County Library System (KCLS), and cities. It will refer clients to other services

in the ecosystem, and enter into private partnerships, such as its partnership with Cowork Box to

offer the SCORE 200 series, etc. As it moves forward it will also need to grow its programs and

reach out to new resources to meet its expanded objectives.

At its core, this 6-month analysis reiterates the most important gap to be addressed for Eastside

businesses is the same as the 2018 UW Bothell Livable Cities Report finding; that the most

important predictor of business success is the availability of business education.

The program has continued to grow and expand its reach thanks to many professionals in the

Eastside business community. In early 2019, Startup 425 formed an Advisory Committee

comprised of business owners, entrepreneurs, investors, consultants, and economic

empowerment specialists. The committee was formed in order to help Startup 425 develop a

program better-suited for early to mid-stage entrepreneurs. A list of the committee members can

be found in Appendix F. In addition to the support Startup 425 has received from its Advisory

Committee, the program has also received input from a consulting team of University of

Washington Bothell students. In a report prepared by these UW Bothell students (led by

committee member, Michael Ervick), it was determined that the root causes for small business

failure are a result of both a lack of educational resources as well as networking and mentorship

opportunities. They compiled research which indicates that as many as 60% of all small

businesses fail within 5 years (Case, 1996; Kirchoff, 1993). One way to increase business

success rates has been through education and training (Danco, 1994; Ede, Calcich, & Panigrahi,

1998; Jenkins & Jenkins, 1997; Luisser, 1995; Robinson & Sexton, 1994; Sage, 1993) The report

included concrete recommendations for Startup 425 to address these issues:

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6

What follows are new initiatives recommended by the Advisory Committee that convened for

four meetings in 2019. These recommendations are a distillation of the Advisory Committee’s

work over this period and the recommendations outlined in the UW Bothell student consulting

team summary shown above. This work did not interfere with the ongoing offerings and

operations of Startup 425. It did analyze existing offerings with an eye toward improving and

augmenting them.

Primary Initiatives

I. Curriculum Enhancement: format and content

Problem Statement:

To further its impact in the region, Startup 425 needs to expand upon existing programs and to

provide additional pathways to educational and training resources.

The current specialty of Startup 425 is the Foundations series of workshops which provide the

entry point for participating entrepreneurs to access business education and minimize the risk of

business failure. Coursework includes free Foundations workshops offered at public libraries.

These workshops provide entrepreneurs with basic, beginner-level training in Ideation, Structure

and Licensing, Business Plan Preparation, Financing, Marketing, and Networking and

Mentoring. Statistical Highlights from the 2019 offering include:

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Incubator • Refine business idea & business plan

(startup) • Develop core product

• Networking

Accelerator • Resources

(growth) • Networking & Mentorships

• Heavy funding

Workshops & • Business education

Classes • 7 Stages of Growth

• Workforce development

Co-Working • Promotes group brainstorming and creativity

Spaces • Open workspace and access to networks

7

101:

Autumn Foundations Learning Series

201:

Small Business Essentials Learning Series

370 attendees 25 attendees

79% of respondents found workshop content

‘very’ or ‘extremely’ helpful

100% of respondents found workshop content

‘very’ or ‘extremely’ helpful

78% of respondents found presenter ‘very’ or

‘extremely helpful

100% of respondents found presenter ‘very’ or

‘extremely helpful

79% of respondents gave an overall rating of

‘very good’ or ‘excellent’

100% of respondents gave an overall rating of

‘very good’ or ‘excellent’

51% of respondents were non-white 45% of respondents were non-white

54% of respondents were women 61% of respondents were women

One focus of this program is immigrant entrepreneurs, who make up a significant proportion of

new business owners in our region. Many have had businesses in their country of origin but can

be isolated from information in the U.S. They may be in need of more context about U.S.

business culture and marketing strategies, access to networking, information about regulations,

access to capital and financing resources and information.

The size, type and stage of businesses represented by entrepreneurs attending workshops has

varied widely. Many attendees have been in the pre-revenue market research stage, while others

have been in business for one or more years and are seeking ways to accelerate growth. Without

options for delving into more advanced course material, Startup 425 lacks the ability to help

larger and more mature businesses reach their full potential. Additionally, by offering only

traditional, in-person, lecture-style workshops, Startup 425 is limited in its ability to reach

audiences with diverse learning styles and time and travel considerations. While supporting

workshops as opportunities for group networking and learning, enhancements can net larger

audiences.

Solution:

In the next five years, Startup 425 aims to continue expanding on the curriculum it offers

Eastside entrepreneurs. Curriculum enhancement will improve course offerings through changes

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8

in format and content. Startup 425 will provide courses that are better tailored to the needs of

businesses based on their size and age (See the curriculum graphic in Appendix B). Culturally

relevant format and content is especially important given the large foreign-born population in our

region. In addition, Startup 425 will offer curriculum services in the forms of workshops, one-

on-one mentoring, and virtual courses. This will make Startup 425’s coursework more accessible

and relevant to entrepreneurs in need of services. The program will offer courses at three levels:

101, 201, and 301. These courses will be offered in three stages that are intended to reach

businesses at differing levels of experience. Although some customers may take courses in order

from beginner-level to advanced-level, customers are able to enroll in whichever course

offerings best meet their business’ needs and goals.

Moving forward, Startup 425 will provide courses for entrepreneurs, startups and early stage

companies using different formats and curriculum that appeal to, or accommodate businesses in

different locations, different sizes, compositions, and stages of growth, language needs, across

most business types on the Eastside with a special focus on serving the underserved and diverse

businesses.

Details:

101 – Foundations: Startup 425 will continue to offer Foundations workshops as they have been

largely successful in providing meaningful content to Eastside entrepreneurs. Free workshops are

the most accessible service offered by Startup 425. Workshops are held at public libraries and are

open to all. Additionally, Foundations are offered in all five cities in the Startup 425 alliance.

Two series of Foundations will be offered annually: one in the fall and one in the spring.

Workshops are taught by SCORE volunteer instructors and other professionals. The courses that

will be offered will remain as follows:

• Ideation

• Structure and Licensing

• Business Plan Preparation

• Financing

• Marketing

• Networking and Mentoring

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9

Also, augmenting the traditional classroom style of workshop delivery is an important future

improvement. The use of the web for virtual content delivery will accommodate asynchronous

learning. Real-time mentoring and other web-based delivery formats will be adopted.

201 – Advanced Coursework: Advanced Coursework or 201, will provide more in-depth

coverage of the fundamentals delivered in the Foundations series of workshops as well as

specialized workshops that entrepreneurs request. As an example, a pilot program beginning in

Fall of 2019, called Small Business Essentials is being offered to Eastside businesses in

partnership with SCORE at the Bellevue Cowork Box location.

Businesses attending Small Business Essentials pay $50 per workshop to SCORE. (In the future,

Startup 425 members may be charged a reduced rate for this program (See the Benefits Diagram

in the Appendix C). This series provides 12 hours of coursework for sole proprietor businesses

and 18 hours of coursework for businesses with employees. Future offerings will be determined

following an assessment of its success. If successful, the program will be offered at different

locations twice a year. The curriculum is listed below:

Sole Proprietor Businesses:

• Creating a business plan

• Starting a business

• Marketing a business

• Managing finances

Businesses with Employees

• Creating a business plan (same as

above)

• Marketing a business (same as above

• Managing employees

The Advisory Committee also recommended other subject areas dealing with Human Resources,

Financing, Succession Planning, Acquisition/Exit Strategies, eCommerce, etc. This provision of

specialty content has been offered in the past by Startup 425. Export training and small business

finance were provided in 2017 and 2018. In order to provide added content, the plan

recommends fielding a larger complement of qualified mentors.

301 – Springboard 425: Beginning in January 2020, Startup 425 proposes a new curriculum

model for more advanced Eastside entrepreneurs (e.g. businesses with revenues of $500,000 or

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10

more). Startup 425 will screen participants and aims to provide more advanced business with a

shared learning space and extensive mentorship opportunities. Startup 425 is exploring the

feasibility of two 301-level options.

Option One: This program is estimated to have the capacity to accept approximately twenty

(20) businesses at a time. The estimated charge for each business is $1,000 for six (6) weeks

of comprehensive training with a goal of attaining a growth rate of over 400% over 3 years.

Startup 425 may solicit bids from vendors to provide this type of programming.

Training and individual mentoring for businesses is expected to take place in business spaces

made available to Startup 425 through public/private partnerships with co-working spaces

(e.g. Cowork Box). Springboard 425 also can be offered through community centers and city

halls in order to be easily accessible for businesses residing in any of the five cities within the

Startup 425 alliance.

This model has been implemented successfully by the City of Kenmore. Thirty (30)

businesses were tracked for 3 years and saw total revenues increase over $60 million (an

increase of 406%) and created 600 new jobs. Consultant to the City of Kenmore on this

program Corey Hanson provided this information:

“The Kenmore Business Incubator is one of only a few city-owned facilities in the US, it opened in 2012. The primary focus of the KBI is to help local, private-owned business to accelerate sustainable and profitable growth. The KBI offers flexible workspace and business acceleration services. The facility is 3000sft of open workspaces, offices, and facilities, and about a third of KBI members lease space there. KBI membership typically fluctuates from 15-20 businesses a year.

The business acceleration service consists of one-to-one business consulting and regular acceleration training. The current training is based on the Hot100Business program titled, "5X Entrepreneur Series," which is a six-week program designed to help business leaders accelerate their growth, to 5 times or more their current revenues, or at least $1 million more, asap. At the KBI, this program has helped over 60 local businesses set and start implementing revenue goals that average over $2.5M each, or a total of more than $150,000,000. Those that aggressively implement the program typically achieve their 5X goal over 2-5 years, and also create an average of 20 new jobs.

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11

The 5X Entrepreneur program is designed to overcome one of the biggest problems in entrepreneurship today. Which is, most entrepreneurs have an average of four major failures, over 20 challenging years, before their business becomes a sustainable success. The 5X Series helps entrepreneurs accelerate their success up to 18 years faster, and 10-100 times more profitably, than on their own.”

Option Two: Will be detailed below in the following section (II. Collaborative Business

Space).

Both 301-level program options are designed as selective processes, where businesses are chosen

based on past performance and commitment to grow and provided with shared learning spaces

and mentorships. Participants must be committed and ready to dedicate time and hard work to

growing their businesses. Businesses benefit from being a part of the 301-level program by being

a member of a like-minded community or cohort. The program also provides businesses access

to mentors, teachers, and funders as a part of its own unique ecosystem. Also, Startup 425 hopes

that the program can be accredited to enable graduates to literally take their accomplishment ‘to

the bank’, for loan underwriting purposes.

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12

Implementation Steps/ Timeline: Primary

• Raising funds through connections with large businesses, banks, philanthropies, etc. • Marketing

Year 1(2020)

• 101: Foundations in spring and fall • 201: Advanced workshops in spring and fall • 301: Develop curriculum for an accelerator to be located at an academic institution and training mentors

Year 2 (2021)

• 101: Foundations in spring and fall • 201: Add more course topics to advanced workshops using industry experts as instructors • 301: Springboard 425 (sponsored businesses) in spring and fall • Develop online courses

Year 3 (2022)

• 101: Foundations in spring and fall • 201: Traditional advanced workshops and virtual delivery methods (different formats for instruction,

online/video mentorship, etc.) Also, continued use of industry experts as instructors • 301: Springboard 425 (sponsored businesses) and evaluate program in spring and fall • Explore expansion of academic institution accelerator program with other Eastside locations

Year 4 (2023)

• 101: Foundations in spring and fall • 201: Traditional and virtual delivery of advanced workshops, also continued industry experts as

instructors • 301: Springboard 425 (sponsored businesses) and evaluate program in spring and fall • Blog added to online portal

Year 5 (2024):

• 101: Foundations in spring and fall • 201: Traditional and virtual delivery of advanced workshops, also continued industry experts as

instructors • 301: Springboard 425(sponsored businesses) and evaluate program in spring and fall

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13

Summary Timeline of Potential Initiatives

Below is a synopsis of annual implementation details. Program will be evaluated annually to

assess progress. This will include internal metrics such as; materials, staffing, and budget.

External metrics will include; number of participants in courses, workshops offered in partner

cities, workshop survey responses, self-described demographics of participants, and revenue

growth of participating businesses. Specific metrics for 2020 which will be updated annually can

be found in Appendix I.

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Enhancements: -Mentors -Connections to

Ecosystem -Webinars -Aysynchrous

Learning

Level301 Collaborative

Business Space

STARTUP425 C URRICULUM

Leve l 101 FoundaNons Classes (SCORE)

Ideation Structure & Licensing

BuY'less Plo.n PrepaottOn Nelwot1dng ond Mentoring

Fnancing Mal<eting

Level 201 SCORE Small Business Essentto ls Workshops

New businesses with emptoyees (18hrs) Oeating a business pion Mal:etng)'O<Jl'bus,>ess Managing employees

New One-Person l uslrHKses (12h11) Creating a busines.s pkm

Starting o business Mal:eting a bvsiness Manag·ng finances

Leve l 301 Accelera1ed growth for

e xlsttng businesses

Cost per bvsiness to scpport 1-2 counselon Busines.ses valued at $500,000 and up

Interest in 4.~ growth over 3 yrs. aosses and consulting provided

Creation 01 20 Jobs

-Advanced Businesses -Hard work and dedication -Like-minded community -Access to capital -Accredited

14

Potential Initiatives: Primary Year 1 (2020)

• Foundations in spring and fall • Advance workshops in spring and fall • Develop curriculum for an accelerator to be located at an academic institution • Grow pool of mentors and train them on Startup 425 curriculum • Partner with academic institution to pilot accelerator • Work with co-working spaces to offer Startup 425 curriculum • Start developing membership portal • Program evaluation and performance measures

Year 2 (2021)

• Foundations in spring and fall • Add more course topics to advance workshops • Springboard 425 offered in spring and fall • Seat first accelerator class in academic institution • Work with co-working spaces to offer classes in several locations • Develop online courses • Launch membership portal • Program evaluation and performance measures

Year 3 (2022)

• Foundations in spring and fall • Advance workshops in spring and fall • Offer virtual delivery formats for Foundation and Advanced workshops • Springboard 425 offered in spring and fall • Evaluate Springboard 425 • Explore expansion of academic institution accelerator program with other eastside locations • Continue expanding offerings at co-working facilities • Evaluate and revise membership portal • Offer online mentoring • Program evaluation and performance measures

Year 4 (2023)

• Foundations in spring and fall • Advance workshops in spring and fall plus virtual delivery options • Springboard 425 in spring and fall at additional eastside locations, both academic institutions and co-

working spaces • Blog added to online portal • Program evaluation and performance measures

Year 5 (2024):

• Foundations in spring and fall • Advance workshops in spring, fall • Virtual delivery offerings enhanced • Springboard 425 evaluated and enhanced • Review of partnerships with academic institutions • Additional membership benefits offered • Program evaluation and performance measures

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15

II. Collaborative Business Space

Problem Statement:

Many early stage entrepreneurs seek co-working space to collaborate with other like-minded

business and receive the benefits of shared amenities, resources and tools. There are many

privately-operated spaces of this type in Bellevue and Redmond, but they are not as

commonplace in the other partner cities. The City of Renton and the City of Woodinville,

however, like the Kenmore project recently described, are exploring the possibility of developing

culinary incubators, while the City of Auburn has sponsored a long-running incubator.

Startup 425 does not currently offer options for Eastside entrepreneurs in need of physical

business space. The Advisory Committee recommended that Startup 425 consider adding co-

working space development to its services, either in partnership with others or on its own. Staff

investigated how Startup 425 might independently develop a co-working space assisted by real

estate and facilities professionals. The findings are included in Appendix H and should be

understood as based upon 2019 space availability and pricing on the Eastside.

Through this investigation, and at the suggestion of TechStars and others, the staff found that

focusing on an independent real estate investment, whether purchase or lease, would be a

substantial financial drain for Startup425 and would eclipse other objectives. Instead, partnering

with a co-working space would allow Startup 425 to focus on providing curriculum, mentors,

and other resources including events which would be mutually beneficial to a partner, and the

best use of Startup425 limited resources.

Solution:

Startup 425 is actively exploring a variety of partnerships with third-party Eastside organizations

to provide co-working space together with its training and mentoring offerings. For example,

Startup 425 is considering a pilot partnership with an academic institution for the provision of

co-working space coupled with a comprehensive accelerator program, similar to SCORE

https://seattle.score.org/, the Y Combinator in San Francisco https://www.ycombinator.com/, or

Startup Hall at the University of Washington https://comotion.uw.edu/what-we-do/comotion-

labs/home/.

E-

https://seattle.score.org/

https://seattle.score.org/

https://www.ycombinator.com/

https://www.ycombinator.com/

https://comotion.uw.edu/what-we-do/comotion-labs/home/




16

Productive conversations have been held with co-working space developers in Startup 425

partner cities with the plan that Startup 425 also can offer curriculum to their members. In

addition, the partnership has indicated that individual cities can develop independent co-working

space, with the suggestion that Startup 425 curriculum also can support them (for which a cost

analysis can be found in Appendix H). Startup 425 is open to working with all types of co-

working venues. At this juncture, growing the curriculum and pool of mentors is needed to serve

this physical space initiative along with the virtual membership concept that follows.

Implementation Steps: Collaborative Space Year 1 (2020)

• Screen and select partner institution • Partnership with academic institution begins • Work with co-working spaces to offer Startup 425 curriculum

Year 2 (2021)

• Seat first class of 20 businesses in new co-working space at academic institution • Public/private partnerships- work with co-working space providers

Year 3 (2022)

• Public/private partnerships- work with co-working space providers • Continue co-working space at pilot academic institution and begin researching other colleges for the

program

Year 4 (2023) • Public/private partnership work with multiple co-working facilities • Continue co-working space at academic institutions

Year 5 (2024):

• Public/private partnerships work with multiple co-working facilities • Continue co-working space at academic institutions • Review of partnerships with academic institutions • Additional membership benefits offered

III. Membership Program

Problem Statement:

Although the Eastside is one of the most technologically advanced regions in the country, it has

few online training delivery platforms for its business clients. Online classes are currently

offered by KCLS, the Seattle Library System, SCORE, and the Small Business Administration.

Startup 425 can augment these offerings by developing relevant tailored online coursework.

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17

Through creating a virtual membership, Startup 425 can increase the accessibility of its services

and simplify the process of connecting with entrepreneurs.

Solution:

To improve accessibility of Startup 425 services, a virtual membership will be created. This

platform will provide customers with the option of making virtual connections with mentors,

gaining access to virtual courses (advanced courses), and navigating Startup 425’s ecosystem

and knowledge base online (which will include information on new business opportunities,

changing regulations and policies, etc.). Businesses must become Startup 425 members to have

access to the virtual membership portal. Other benefits of being a Startup 425 member can be

found in Appendix C. Based on the results of the demand assessment survey which can be seen

in full in Appendix E, Startup 425 expects about 40% of its clients to join the membership

program. A potential annual membership fee was estimated $75, pending further evaluation. The

results also show that clients would be most willing to pay a membership fee for mentorships,

specialized workshops, and professional development trainings (See Appendix E).

Implementation Steps: Membership Program Year 1 (2020)

• Start developing virtual membership space

Year 2 (2021) • Start offering online courses through the virtual membership portal • Assessment of virtual membership space and enrichment

Year 3 (2022)

• Start offering mentorship services through the virtual membership portal • Assessment of virtual membership space and enrichment

Year 4 (2023)

• Assessment of virtual membership space and enrichment • Blog added to virtual membership portal

Year 5 (2024):

• Assessment of virtual membership space and enrichment

One concern raised by staff in implementing a membership program is the fact that current

mentoring services provided by Startup425 and its partners are generally free as partners are

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18

government or quasi-government representatives. It may be necessary to demonstrate value

added and funding need to launch the virtual membership program.

Secondary Initiatives

I. Business Ecosystem Building

Description:

With the growing Eastside economy and its Foundations workshop series alumni, Startup 425

has the ability to reach out to many more entrepreneurs and further develop its ecosystem. This

will provide Startup 425 clients with greater resources and opportunities for improving their

businesses through making connections with similarly situated entrepreneurs and the experts and

organizations that provide them with support services.

Steps:

1. Receive input from the Startup 425 Advisory Committee, incorporating any possible

contacts for resources

2. Incorporate the ecosystem into the Startup 425 portal

3. Keep the ecosystem current and updated

4. Re-evaluate the ecosystem periodically and continue to grow it

II. Grow Mentor Pool

Description:

As shown by the results of the demand assessment survey which can be seen in full in Appendix

E, clients of Startup 425 would like to see more mentorship opportunities. As Startup 425 looks

to enhance its curriculum, recruiting and retaining additional mentors must be pursued, with a

emphasis on diversifying the mentor pool to include mentors from different cultural

backgrounds. Immigrant entrepreneurs will benefit from meeting other immigrants who have

successfully navigated the early stages of their businesses and understand the struggle of new

immigrant entrepreneurs. Having new mentors of all kinds will improve the ability to provide

quality course material and training to entrepreneurs.

Steps:

1. Partner with SCORE to create a “Mentor Recruitment Initiative” to grow the roster of

qualified mentors.

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19

2. Conduct outreach to known key members of the business ecosystem – Advisory

Committee members, college instructors, chambers, financiers, Startup 425 partners

contacts, etc.

3. Include questions in post-workshop surveys to ask attendees what additional workshops

they want to see offered by Startup 425 and what knowledge they need to grow their

businesses.

4. Implement events that reward current mentors and encourage new mentors to participate

5. Work with area colleges and other continuing education providers to plan and implement

a course to train business mentors.

III. Job fairs

Description:

Startup425 has a great capacity to connect entrepreneurs with future employees through

engaging in job fairs. By hosting job fairs and creating networking opportunities for businesses

and possible employees (in conjunction with organizations like New Tech Northwest), Startup

425 can contribute to job growth on the Eastside and help businesses be successful. Startup 425

expects to partner with other organizations to host job fairs throughout the year. Attendees would

be charged a small fee for tickets and Startup 425 members would receive s 15% discount for

events put on by its partner organizations.

Steps:

1. Conduct research on how to host a successful job fair

a. Contact community colleges

b. Contact other cities like Issaquah1

2. Connect with organizations like New Tech Northwest and partner in hosting the event

IV. Hackathon Event

Description:

Based on the input from the advisory committee, Startup 425 staff formulated a demand

assessment survey which can be seen in full in Appendix E. This survey was distributed by email

1 An Advisory Committee member provided Startup 425 with valuable information regarding the success of job fairs in the City of Issaquah.

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20

through city mail listings, Advisory Committee member contacts, and to Startup 425

Foundations alumni. While response rates were relatively low, data gathered showed that clients

are interested in seeing more offerings for educational events.

By hosting a Hackathon event, Startup 425 can help early-stage entrepreneurs create their

businesses and expose businesses to Startup 425 programs. At these types of events attendees

split up into groups of about 10 people, each with a specific area of expertise (such as marketing

coding, market research, etc.). In total, the event is comprised of 10-15 teams and is estimated to

take approximately 4-5 months to organize2. These events are usually put on with the help of

volunteers and the donation of a free location to host the event helps to defray expenses.

Information for costs associated with hosting the event can be found in the attached budget (in

Appendix H). Based on similar events, the cost of tickets would be approximately $40 with an

expected number of 100-120 attendees.

Steps:

1. Find a free location to hold the event

2. Recruit volunteers to work the event

3. Marketing and outreach to promote the event

4. Host first Hackathon event in Fall of 2020

5. Continue hosting the event annually

Conclusion

To develop a five-year strategic plan in these times of constant change is a difficult proposition.

What we have captured is a snapshot of the thinking of small business experts, academicians and

city economic development staff about how best to satisfy the service gap that exists on the

Eastside for entrepreneurs and startups seeking business education in 2019. We hope it guides

the programs of Startup425 in the next period. However, we are cognizant that it will need

continuous refreshing and have included that annual activity in this report.

2 Based on Startup Weekend

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21

We can anticipate with some certainty that the region will continue to grow, and that the demand

for business education and services on the Eastside will be steady if not increasing. New arrivals

representing a diversity of cultures, ethnicities and learning styles, retired corporate employees

who want to pursue entrepreneurship, and many others will drive demand for Startup425’s

offerings. Our response is to recommend expansion of how courses are presented and the

enrichment of the current Foundations (100), Advanced (200) curriculum. We also are

recommending the addition of a 300-level platform that takes successful startups with a

commitment to growth through an accelerator program or condensed business training bootcamp

taught by mentors from academia and the business service ecosystem. The program also will

offer access to successful businesses and investors. Upon completion of the program, a

certification will be granted to enhance their efforts to obtain necessary funding.

The addition of flexible formats for their business education will help those who are balancing

family and current jobs along with transportation challenges. We have planned for several new

options including webinars, virtual membership with access to one-on-one mentoring, evening

and weekend workshops, and access to Startup425 offerings while seated in one or another co-

working space or a new space currently being explored at an academic institution on the

Eastside.

As we move forward with adoption of our major initiatives by the Startup425 cities, we will

work to develop and test each of them; truthing them with accurate demand numbers, expert

reviews and costs. At the same time, we will implement secondary programs aimed at growing

our mentor pool, posting the business services ecosystem to dispatch entrepreneurs to services

they need, updating and enhancing the Startup425 website and other communication vehicles,

staging meetups for founders and potential employees, and seeking new venues and online

options for marketing our product to entrepreneurs and startups on the Eastside.

Thanks to all involved for helping Kirkland staff to prepare this 5-year strategic plan for

Startup425.

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22

Appendix A: Plan

E-

• Foundations 101 201- Advanced Coursework

• 301- SpringBoard 425

Ecosystem Building

Job Fairs

Mentor Buidling

Events

Virtual Membership Public/Private Partnership Partnership with Colleges

23

Appendix B: Curriculum

E-

Enhancements: -Mentors -Connections to

Ecosystem -Webinars -Aysynchrous

Learning

Level301 Collaborative

Business Space

STARTUP425 CURRICULUM

Level 101 foundoffons Cloues (SCORE)

Ideation Structure & Licensing

Busi'less Pion Prepaotion Netwooong and Mentoring

Financing Marketing

Level 201 SCORE Small Buslneu Eu entlols Workshops

New buslne"es with employees (1 Blvs) Cleating o business plan Mcr1ceting your bu>ness Mon09ng employees

New One-Person Businesses (12hts) Creating o business pion

Starting o business Marketing o business Monog·ng finances

Level 301 Accelerated growth for

existing businesses

Cost per busin8$S to support 1 ·2 cooose!O<S Businesses \/Ofued at $500.oo:> and up

Interest in 4.~ growth over 3 yrs. Oosses and conwting provided

Creation of 20 jobs

-Advanced Businesses -Hard work and dedication -Like-minded community -Access to capital -Accredited

24

Appendix C: Benefits Diagram

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Virtual Connection with Mentors

Startup425 Membership Benefits

Access to Ecosystem and

Knowledge Base

Reduced Event Costs

Reduced Costs for Advanced Courses

25

Appendix D: Ecosystem Chart

ECOSYSTEM EASTSIDE (Certain Seattle programs

w/regional breadth)

ORGANIZATIONS/BUSINESSES

Academic Institutions

GIX https://gixnetwork.org/ University of WA Bothell https://www.uwb.edu/ Northwest University https://www.northwestu.edu/ Digipen https://www.digipen.edu/ Foster School https://foster.uw.edu/ Bellevue College https://www.bellevuecollege.edu/ Lake Washington Institute of Technology https://www.lwtech.edu/ Renton Technical College https://www.rtc.edu/

Community Resources Renton Chamber https://www.gorenton.com/ Issaquah Chamber https://www.issaquahchamber.com/ Bellevue Chamber https://www.bellevuechamber.org/ Kirkland Chamber https://kirklandchamber.org/ ERIC https://ericmembers.org/ Seattle Business Education Hub (B) http://www.sbehub.com/ Wayfind https://wayfindlegal.org/ Ventures (S) https://www.venturesnonprofit.org/about/

Business Services FundingQuest ( ) https://www.funding-quest.com/

Incubators Kenmore http://www.kenmorewa.gov/KBI Mercury MedTech https://www.lwtech.edu/ WIN (OneRedmond) http://washingtoninteractivenetwork.org/ Comotion (S) https://comotion.uw.edu/ ExtraSlice (B) https://extraslice.com/ Ventures (S) https://www.venturesnonprofit.org/incubators/

Co-working Spaces ExtraSlice (B) https://extraslice.com/ Regus (B), (K), (Red), (Ren) https://www.regus.com/ The Riveter (B) https://www.theriveter.co/ Thinkspace (Red) https://thinkspace.com/ Vestlink (K) https://www.vestlink.io/cowork WeWork (B) https://www.wework.com/ NorthStar Offices (Red) http://www.northstaroffices.com/ CoworkBox (B) http://www.coworkbox.com/welcome.html Industrious (B) https://www.industriousoffice.com/ Meadowbrook Business Center (I) http://www.meadowcreekbusinesscenter.com/

Makers Spaces IdeaX Makers Space (B) http://startup.choosewashingtonstate.com/resources/work-spaces/ Metrics (S) http://startup.choosewashingtonstate.com/resources/work-spaces/ Sodo Makers Space (S) http://startup.choosewashingtonstate.com/resources/work-

spaces/

Accelerators TechStars https://www.techstars.com/programs/seattle-program/

Mentorship Networks SCORE (multiple locations) https://seattle.score.org/eastside Seattle Business Education Hub (B) http://www.sbehub.com/ NewTech Eastside and other meetup groups https://www.newtechnorthwest.com/events/new-tech-eastside/

E-

https://gixnetwork.org/

https://gixnetwork.org/

https://www.uwb.edu/

https://www.uwb.edu/

https://www.northwestu.edu/

https://www.northwestu.edu/

https://www.digipen.edu/

https://www.digipen.edu/

https://foster.uw.edu/

https://foster.uw.edu/

https://www.bellevuecollege.edu/

https://www.bellevuecollege.edu/

https://www.lwtech.edu/


https://www.rtc.edu/

https://www.rtc.edu/

https://www.gorenton.com/

https://www.gorenton.com/

https://www.issaquahchamber.com/

https://www.issaquahchamber.com/

https://www.bellevuechamber.org/

https://www.bellevuechamber.org/

https://kirklandchamber.org/

https://kirklandchamber.org/

https://ericmembers.org/

https://ericmembers.org/

http://www.sbehub.com/


https://wayfindlegal.org/

https://wayfindlegal.org/

https://www.venturesnonprofit.org/about/

https://www.venturesnonprofit.org/about/

https://www.funding-quest.com/

https://www.funding-quest.com/

http://www.kenmorewa.gov/KBI

http://www.kenmorewa.gov/KBI



http://washingtoninteractivenetwork.org/

http://washingtoninteractivenetwork.org/

https://comotion.uw.edu/

https://comotion.uw.edu/

https://extraslice.com/


https://www.venturesnonprofit.org/incubators/

https://www.venturesnonprofit.org/incubators/



https://www.regus.com/

https://www.regus.com/

https://www.theriveter.co/

https://www.theriveter.co/

https://thinkspace.com/

https://thinkspace.com/

https://www.vestlink.io/cowork

https://www.vestlink.io/cowork

https://www.wework.com/

https://www.wework.com/

http://www.northstaroffices.com/

http://www.northstaroffices.com/

http://www.coworkbox.com/welcome.html

http://www.coworkbox.com/welcome.html

https://www.industriousoffice.com/

https://www.industriousoffice.com/

http://www.meadowcreekbusinesscenter.com/

http://www.meadowcreekbusinesscenter.com/

http://startup.choosewashingtonstate.com/resources/work-spaces/








https://www.techstars.com/programs/seattle-program/

https://www.techstars.com/programs/seattle-program/

https://seattle.score.org/eastside

https://seattle.score.org/eastside



https://www.newtechnorthwest.com/events/new-tech-eastside/

https://www.newtechnorthwest.com/events/new-tech-eastside/

26

WTIA (S) https://www.washingtontechnology.org/ BizDiversity https://bizdiversity.net/

Angels Keiretsu (S) http://www.keiretsuforum.com/global-chapters/seattle Alliance of Angels (S) https://www.allianceofangels.com/

Venture Capitalists Ignition (B) https://www.ignitionpartners.com/ Trilogy Equity (B) http://www.trilogyequity.com/

Corporations

CDFI and Banks Business Impact NW https://businessimpactnw.org/

Grants Kauffman Foundation https://www.kauffman.org/ JPMorgan Chase https://www.jpmorganchase.com/corporate/Corporate-Responsibility/global-philanthropy.htm Amazon

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https://www.washingtontechnology.org/

https://bizdiversity.net/

https://bizdiversity.net/

http://www.keiretsuforum.com/global-chapters/seattle

http://www.keiretsuforum.com/global-chapters/seattle

https://www.allianceofangels.com/

https://www.allianceofangels.com/

https://www.ignitionpartners.com/

https://www.ignitionpartners.com/

http://www.trilogyequity.com/

http://www.trilogyequity.com/

https://businessimpactnw.org/

https://businessimpactnw.org/

https://www.kauffman.org/

https://www.kauffman.org/

https://www.jpmorganchase.com/corporate/Corporate-Responsibility/global-philanthropy.htm




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Appendix E: Demand Assessment Survey and Results

Based on input from the Advisory Committee, Startup 425 staff formulated a demand assessment

survey. The survey was distributed by email through city mail listings, to Advisory Committee

member contacts, and to Startup 425 Foundations alumni. The goal of the survey was to assess

how interested former Startup 425 clients and possible new clients would be in the proposed

primary initiatives. Additionally, the survey was used to gather more detailed information on the

types of services former clients and possible clients would like to see offered by Startup 425 in

the next three to five years. Although the response rate for the Demand Assessment was low with

59 respondents, data gathered from this survey paired with responses to Foundations surveys

(distributed to Foundations customers after each course) help Startup 425 to gain a more

informed view of what business education and other resources are in demand.

Demand Assessment Survey Questions Startup 425 is an alliance of five Eastside governments that provides early to mid-stage businesses with the resources and training they need to grow in a successful and sustainable manner. We are in the process of creating a 3 to 5-year strategic plan to offer additional resources. We would like your input on the following questions.

Introduction

1. Are you currently doing business on the Eastside? a. Yes (64.41%) b. No (15.25%) c. No, but I plan to launch my business in the next six to twelve months on the

Eastside. (20.34%)

2. How many years has your business been in operation? a. My business has not yet launched. (33.9%) b. Less than a year (5.08%) c. 2 to 5 years (28.81%) d. 6 or more years (32.2%)

3. How many full-time employees does your business currently have? a. No employees (57.63%) b. 1 to 3 (23.73%) c. 4 to 10 (15.25%) d. More than 10 (3.39%)

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Services and Programmatic Offerings

4. Within the past six to twelve months, have you utilized business development services from any of the following providers? (Please check all that apply.)

a. Startup 425 (30.51%) b. Greater Seattle SCORE (15.25%) c. Washington SBDC (1.69%) d. Chamber of Commerce (11.86%) e. City economic development office (6.78%) f. Other (please specify) (3.39%) g. None of the above. (50.85%)

5. Within the past six to twelve months, have you utilized any of the following business

development resources? (Please check all that apply.) a. Mentors or advisors specializing in finance, business planning, licensing, etc.

(11.54%) b. Workshops or classes on various business topics (42.31%) c. Professional development trainings (13.46%) d. Conference, classroom, meeting, or event space (9.62%) e. Specialized equipment, such as 3D printers, computer software, etc. (11.54%) f. Other (please specify) (11.54%)

Startup 425 is considering development of a membership model whereby small business owners would have the ability to pay a small fee to access certain services above and beyond our traditional service model. The following questions gauge your level of interest in these services.

6. If so, how likely would you be willing to pay a premium to be able to access resources

such as event space, mentors and advisors, specialized equipment for your business? a. Very likely (5.08%) b. Likely (33.9%) c. Neither likely nor unlikely (16.95%) d. Unlikely (32.2%) e. Very unlikely (11.86%)

7. Which of these resources would you be willing to pay a membership fee for:

a. Mentors specializing in finance, business planning, licensing, etc. (42.59%) b. Workshops or classes on various business topics (46.3%) c. Professional development trainings (48.15%) d. Conference, classroom, meeting, or event space (38.89%) e. Specialized equipment such as 3D printers, computer software, etc. (29.63%) f. Other (please specify) (9.26%)

8. Based on your experience with Startup 425 and/or running your business, how useful

would you find each of the following activities? (1 = not at all useful, 5 = extremely useful)

a. In-depth versions of the current Foundations curriculum (AVG: 2.76)

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b. Educational events (AVG: 3.48) c. Pitch competitions (AVG: 2.65) d. Meetups between startups and potential employees (AVG: 2.86) e. One-on-one mentorship opportunities (AVG: 3.6) f. Webinars or online resources on select subjects (AVG: 3.32) g. Intensive business development boot camps (AVG: 3.04) h. Other (please specify) (--)

9. How interested would you say you are in learning more about each of the following

topics? (1 = not at all, 5 = extremely interested) a. Leadership principles (AVG: 3.11) b. Human resources management (AVG: 2.81) c. Labor standards (AVG: 2.7) d. Contract management (AVG: 3.02) e. Succession planning (AVG: 2.59) f. Buying a business (AVG: 2.29) g. Franchising (AVG: 2.25) h. eCommerce and selling products online (AVG: 3.34) i. Alternative financing (i.e. crowdfunding, angel investments, revolving loan, etc.)

(AVG: 3.02) j. Exit strategies (i.e. sale of the business, public stock offering, etc.) (AVG: 3.02)

10. Would you or people you know benefit from courses offered in a language other than

English? a. Yes (please specify language) (86.21%) b. No (13.79%)

11. Are you interested in renting a desk in a shared workspace?

a. Yes (8.77%) b. No (68.42%) c. Maybe (22.81%)

****IF NO, SKIP TO 15******

12. Which cost range represents the most you would be willing to pay per month per for a

desk in a co-working space? a. $100-$199 (57.89%) b. $200-$299 (26.32%) c. $300-$399 (10.53%) d. $400-$499 (5.26%) e. $600 or more (0%)

13. Which cost range represents the highest you would be willing to pay per hour for an

event space for up to 30 attendees? a. $50-$75 (36.84%) b. $76-$100 (31.58%)

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c. $101-$149 (26.32%) d. $150 or more (5.26%)

14. Is there a particular city or location in which you would be interested in space? (Please check all that apply.)

a. Bellevue (84.21%) b. Kirkland (47.37%) c. Issaquah (36.84%) d. Redmond (47.37%) e. Renton (21.05%) f. Other city (please specify) (0%)

Demographics

15. What is your age? a. Under 20 (1.72%) b. 20 to 24 (0%) c. 25 to 34 (8.62%) d. 35 to 44 (18.97%) e. 45 to 54 (31.03%) f. 55 to 64 (24.14%) g. 65+ (10.34%) h. Prefer not to answer (5.17%)

16. If you experience a disability, please tell us what kind. (select all that apply)

a. Mobility (1.85%) b. Vision (3.7%) c. Hearing (0%) d. Cognitive (0%) e. None (75.93%) f. Prefer not to answer (18.52%) g. Other (please specify) (1.85%)

17. Do you consider yourself… (select all that apply)

a. American Indian/Alaska Native (5.17%) b. Asian (10.34%) c. Black/African American (5.17%) d. Hispanic/Latinx (8.62%) e. Native Hawaiian/Other Pacific Islander (1.72%) f. White (56.9%) g. Prefer not to answer (17.24%) h. Other (please specify) (5.17%)

18. With which gender do you most identify?

a. Female (43.1%)

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b. Male (44.83%) c. Transgender female (0%) d. Transgender male (0%) e. Non-binary / third gender (0%) f. Prefer not to say (12.07%) g. Other: (0%)

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Appendix F: Advisory Committee and City Partners Committee Members:

• Brianna McDonald (Keiretsu)

• John Sechrest (Seattle Angel Conference)

• Alex Fong (Signarama)

• Petri Hautakangas (Tupl)

• Andrea Melero (Astera Consulting)

• Melissa Ventura (Astera Consulting)

• Paul Ingalls (Ripl)

• Debbie Lacy (ERIC)

• Leslie Lum (Bellevue College)

• Dean Van Dyke (SCORE)

• Michael Santiago (Nerds2Go)

• Lawrence Lerner (Lerner Consulting)

• Maha Jafarey (Wayfind)

• Svetla Tzekov (Umpqua)

• Ashwin Muthuvenkataraman (entrepreneur)

• Janie Sacco (US Metro Bank)

• Felix Ngoussou (Seattle Business Education Hub)

• Parteek Singh (SDBC)

• Michael Ervick (UW Bothell)

• Mike Potter (Lake Washington Institute of Technology)

• Paul O’Beirne (Orca HR Solutions)

• Jeanine Needles (Intern with the City of Kirkland)

City Partners:

• Ellen Miller-Wolfe (Kirkland)

• Duncan Milloy (Kirkland)

• James Lopez (Kirkland)

• Anthony Gill (Bellevue)

• Jesse Canedo (Bellevue)

• Jessie Kotarski (Renton)

• Sarah Pyle (Redmond)

• Christopher Wright (Issaquah)

• Tim Dutter (Issaquah)

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Appendix G: Acknowledgements In addition to the contributions of the Advisory Committee, City partners, SCORE and KCLS, Startup425 would like to acknowledge the following individuals and organizations who helped with analysis of the 5-year strategic plan. Coworking Space Nathan Daum, City of Shoreline Economic Development Manager; former manager, UWStartup Hall Chris Dodd, Facilities Manager City of Kirkland Corey Hansen, Consultant to the City of Kenmore on Kenmore Incubator Leslie Lum, Professor, Business Transfer, Bellevue College Amy Morrison, President of Michael Potter, Lake Washington Institute of Technology Nancy Ousley, Assistant City Manager, City of Kenmore Joe Steele, CBRE; advisor to the City of Kirkland Louis Huynh, Director of Network Operations, Techstars Corey Hansen, City of Kenmore Consultant and author “Hot 100” Curriculum Development and Business Service Provision Chuck Botsford, SCORE Mentor and Curriculum Developer Chris DeVore, Techstars; Founders’ Coop Isabel DeWulf, Managing Director, Small Business Export Assistance Division, OEDC, State Department of Commerce Michael Ervick, Small Business Liaison at Governor's Office for Regulatory Innovation and Assistance, Governor’s Office, former instructor, UW Bothell Felix Ngoussou, Seattle Business Education Hub John Sechrest, Seattle Angels and Startup Weekend Director (Hackathon) Parteek Singh, SBDC Advisor to the cities of Redmond and Bellevue May Wan, SCORE Director Beto Yarce, Executive Director of Ventures

Meetups, Job Fairs, and Membership Programs Brett Greene, CEO/Founder New Tech Northwest Corey Hansen, Kenmore Business Incubator Ashwin Muthuvenkataraman, entrepreneur (Issaquah Job Fair Project)

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Appendix H: Rent Analysis Startup 425 staff investigated the feasibility of a city-run co-work facility. The data provided

below was collected through researching real estate information with the help of Chris Dodd,

Facilities Manager for the City of Kirkland.

Program:

2 12’x12’ private offices for confidential mentoring of clients

20-25 8’x8’ co-working spaces

2 conference rooms/classrooms (need square footage)

400 sq. ft. greeting/administration station

250 sq. ft. kitchen

125 sq. ft. copying, supply room

Equipping facility costs (furniture, fixtures, and equipment): $65K-$90K

Total square feet anticipated: 3500 sq. ft.

Estimated cost per square foot: $20-$34 plus triple nets or $10 per sq. ft.

Example: A property that was available for $18.33 per sq. ft. would cost approximately

$8,300 per month to rent

Equipping facility costs:

25 work stations: $1,250 x 25 = $31,250

2 offices: $2,000 x 2 = $4,000

Reception = $4,000

2 Conference tables and chairs: $7,000 x 2 = $14,000

Appliances/technology/lunch room: $13,000

Misc: $10,000

Tax: $7,625

Total: $83,875

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Appendix I: 2020 Metrics Startup 425 Metric Goals for 2020: Updated Annually

In 2020, a series of quantifiable metrics for each of the principal activities and program offerings have been established. The year-end evaluation process will compare actuals against these goals to assess performance. The specifics are given below. Foundations Learning Series – 101 Workshops will be offered in partnership with partners including KCLS and SCORE to offer education in foundational business knowledge.

Metrics Goal 2020 Actual

Foundations registrations 1500

Unique registrations 600

Completed user surveys 750

# of workshops 42 Percent of survey respondents who found workshop very/extremely helpful

100%

Percent of respondents who found the presenter very/extremely engaging

100%

Percent who gave overall rating of very good/excellent 100%

Non-White respondents 50%

Female Respondents 50%

Workshops offered in Bellevue 10

Workshops offered in Redmond 8

Workshops offered in Kirkland 8

Workshops offered in Renton 8

Workshops offered in Issaquah 8 Small Business Essentials Learning Series – 201 Intended as a more advanced series to further targeted business education.

Metrics Goal Actual Small Business Essentials Registrations 50

Workshops offered 7

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Percent of survey respondents who found Workshop very/extremely helpful

100%


100%



Female Respondents 50% 425 Accelerator – 301 A new curriculum will be written by August 2020 in preparation for launching a pilot business accelerator in the fall of 2020.

Metrics Goal Actual

Curriculum Created 1

# New Accelerator Classes 1

# Accelerator Registrants 15 # Certificates of Completion Granted 15

Percent of survey respondents who found Workshop very/extremely helpful

100%


100%



Female Respondents 50% Connector Events Startup 425 will attend and organize several events in 2020 that are focused on supporting the Eastside’s entrepreneurial ecosystem.

Metrics Goal Actual

Conferences Attended 5

Job Fair offered (Liaison Role) 1 Hackathon offered (Liaison Role) 1

Mentor Pool Event 1

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2020 Ecosystem Launch 1 Outreach In 2019 Startup 425 used no paid advertising and publicized its offerings through postings on its website, Facebook Page, and use of targeted email lists managed by each partner city. In 2020 a more robust marketing campaign, including paid advertising, will be developed and implemented with direct involvement from the city of Kirkland’s communications team. Recruitment of additional instructors will be conducted. The feasibility of a membership portal will be researched.

Metrics Goal Actual

425 magazine advertising 3 print adds

Facebook Advertising 3 campaigns timed to boost workshop registration

Instructor Pool 15

425 Website Users 4000

425 Website Sessions 6000

2020 Metric Development:

The number of Foundations (100 level) workshops offered each year is based on annual offerings of a complete series in both spring and fall. In the coming year, this 5-series workshop will be trimmed to 4-part series by elimination of the Structure and Licensing workshop based on lower interest levels. Its content will be delivered in 2020 by the Business Plan workshop. In 2019, the Foundations workshops had 1653 registrations. In 2020, with 42 workshops offered, 1500 registrations are expected, a 9% decrease in enrollment.

This lowering of expected Foundations participation also factors in a leveling trend in overall Foundations enrollment, feedback from SCORE that consultations are down, and attributed in part to a 50-year low in the unemployment rate and fewer people seeking self-employment.

Small Business Essentials (200 level) taught 25 students in the pilot program in the fall of 2019. The 2020 goal is to have a 100% increase in enrollment when it is offered in the summer of 2020 for a total of 50 students. More marketing and adjusted scheduling are reasons for this anticipated growth in enrollment.

A goal enrolling 15 registrants in a pilot program for a first-year cohort in the Accelerator (300 level) program is based on preliminary capacity information from Bellevue College, input from a similar program offered through the City of Kenmore, together with the input from regional operators such as Techstars. This number is also limited by the required qualifications of registrants having an existing business with at least $300K in gross sales that are willing to commit to a 10-week intensive bootcamp for this pilot class.

General demographics of at least 50% women and 50% non-white are based on historical averages.

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Connecter event goals are based on conversations with event operators and upon the recommendations of the strategic plan.

Website use goals are supported by past metrics and support a 10% increase from 2019. Online activities will be supported by planned additional marketing.

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Appendix J: Three Year Budget Plan The budget provided below outlines Startup 425’s expected revenues and expenses in the next

three years (from 2020 to 2022). These numbers are based on research conducted for the

implementation of the primary and secondary initiatives detailed in the previous section. By

following the budget plan and the implementation timeline, Startup 425 can expect a surplus just

under $20,000 in the next three years. Additionally, Startup 425 is exploring other grant

opportunities. A list of possible grants can be found in Appendix K.

Assumptions

1. Consulting/Mentoring Costs based on Advanced Finance Series

2. Rent for 201 Courses based on current Cowork Box prices

3. Rent for 301 Courses based on 201 rent costs

4. Event Costs based on Startup Weekend

5. Advanced Workshop Revenue based on Advanced Finance Series and SCORE Series

6. Event Revenue based on Startup Weekend

7. Revenues from membership fees are not included (unknown number of expected

members)

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3 Year Budget

Year 1 (2020) Year 2 (2021 l I Year 3 (2022) Total

EXPENSES

Salaries P-T Employee 1 $ 41,475.00 $ 41,475.00 $ 41,475.00 $ 124,425.00

P-T Employee 2 $ 42,000.00 $ 42,000.00 $ 42,000.00 $ 126,000.00 Intern $ 3,281 .00 $ 3,281 .00 $ 3,281 .00 $ 9,843.00

Consulting/Mentor Costs $ 38,500.00 $ 38,500.00 $ 38,500.00 $ 115,500.00

Communications/ Social Media Contract Staff $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 30,000.00

Primarv Initiatives Snacks/Refreshments $ 330.00 $ 330.00 $ 330.00 $ 990.00

Soonsor Bellvue Tech Exoo $ 525.00 $ 525.00 $ 525.00 $ 1,575.00

Sponsor Eastiside Summit $ 400.00 $ 400.00 $ 400.00 $ 1,200.00

Rent for 101 Courses0ncludina aas, electric, water, aarbaae, and minor reoai $ 9,360.00 $ 9,360.00 $ 9,360.00 $ 28,080.00

Rent for 201 Courses (including gas, electric, water, garbage, and minor repa $ 2,987.72 $ 2,987.72 $ 2,987.72 $ 8,963.16

Rent for 301 Courses 0ncludina aas, electric, water, aarbaae, and minor reoail $ $ 2,987.72 $ 2,987.72 $ 5,975.44


Event Cost $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 30,000.00

Total Expenses $ 158,858.72 $ 161 ,846.44 $ 161 ,846.441 $ a,_11111.eo

REVENUES

City Fundina $ 60,000.00 $ 60,000.00 $ 60,000.00 $ 180,000.00

Port of Seattle Grant $ 46,200.00 $ 46,200.00 $ 46,200.00 $ 138,600.00

Primary Initiatives

Advanced Workshoo Revenue $ 29,400.00 $ 29,400.00 $ 29,400.00 $ 88,200.00

King County Library Fund $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 54,000.00

301 Course Fees (non members) s s 20,000.00 s 20,000.00 s 40,000.00


Event Revenue $ 4,400.00 $ 4,400.00 $ 4,400.00 $ 13,200.00

Total Revenues $ 153,600.00 $ 173,600.00 $ 173,600.00 I $ 500-IOO.OO

Surplusl(Deficit) $ (5,258.72)1 $ 11 ,753.56 $ 11 ,753.56 s 18,248.40

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Appendix K: Possible Grants

1. Kaufman Foundation

2. Morgan Chase

3. Small Business Administration

4. Microsoft

5. Tableau

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Appendix L: Minutes of Advisory Committee Meetings

Startup 425 Advisory Committee March 21, 2019 Peter Kirk Room Kirkland City Hall Attendees

1. Ellen Miller-Wolfe, Regional Business Partnership Manager, City of Kirkland [email protected] 2. Duncan Milloy, Consultant to Kirkland’s Regional Business Partnerships, [email protected] 3. Jim Lopez, Assistant City Manager, City of Kirkland, [email protected] 4. Jesse Canedo, Chief Economic Development Officer (Interim), City of Bellevue, [email protected] 5. Anthony Gill, Economic Development Analyst, City of Bellevue, [email protected] 6. Brianna McDonald, President, Keiretsu Forum Northwest, [email protected] 7. John Sechrest, Startup Mentor and Startup Ecosystem Economic Developer, [email protected] 8. Alex Fong, Owner, Signarama, [email protected] 9. Petri Hautakangas, CEO, Tupl, [email protected] 10. Melissa Ventura, CMO, Astera Consulting, [email protected] 11. Andrea Molero, CEO, Astera Consulting, [email protected] 12. Paul Ingalls, CEO, Ripl, [email protected] 13. Ashwin Muthuvenkataran, Issaquah Economic Vitality Commission, [email protected] 14. Leslie Lum, Faculty, Bellevue College, [email protected] 15. Michael Ervick, Faculty, UW Bothell, [email protected] 16. Lawrence Lerner, Owner, Lerner Consulting, [email protected] 17. Debbie Lacy, Executive Director, Eastside Refugee & Immigrant Coalition (ERIC), [email protected] 18. Michael Santiago, Franchise Owner, NerdsToGo, [email protected] 19. Dean Van Dyke, SCORE, [email protected]. 20. Paul OBeirne, ORCA HR Solutions [email protected]

Meeting Purpose The meeting was convened by Ellen Miler-Wolfe, Regional Business Partnership Manager, City of Kirkland, to engage participants in a discussion about the history of Startup 425 and charting a path for its future development over the next 3-5 years. Process Anthony Gill, Economic Analyst, City of Bellevue gave a presentation on the genesis, past programming and outcomes to date of Startup 425. Michael Ervick, Faculty, UW Bothell gave a presentation on the work that his undergraduate students did on analyzing Startup 425 and recommending a business model to achieve sustainability. Following those two presentations, Ellen Miller-Wolfe delivered the charge to the Advisory Committee to examine three possible future tracks: Plan A – Perfect and Grow Current Foundations Series and Curricula Plan B – Plan A Plus Other Programs and Projects Plan C – Rethink Startup 425 Altogether Discussion

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Committee members felt that there needed to be better clarity around the goals of the program before proceeding further with development of recommendations for a way forward. The following were highlighted as areas that need to be prioritized:

• Business Starts • Job Creation • Revenue Growth • Industry Focus • Diversity • Scalability • Sustainability • Resource Requirements • Value Proposition • Competitive Differentiation

Next Steps

1. Ellen Miller-Wolfe will poll the Startup 425 five-city members for their respective economic development goals related to startups, entrepreneurs and small businesses.

2. Agenda for the next Advisory Committee meeting on 18 April will be focus on desired goals and will be developed following the collection of the municipal economic development goals.

3. An inventory of the current components of the Eastside startup, entrepreneur and small business ecosystem will be developed.

April 18th, 2019 Meeting Purpose: Discuss Startup 425 goals and outcomes Attendees and Groups:

1. Group 1: Team Nexus a. Jim Lopez b. John Sechrest c. Debbie Lacy d. Maha Safarey e. Sarah Pyle

2. Group 2: Jump Starters a. Ellen Miller-Wolfe b. Janie Sacco c. Paul Ingalls d. Ashwin Muthuvenkatarman e. Andrea Melero

3. Group 3: Track 3 a. Duncan Milloy b. Lawrence Lerner c. Melissa Venture d. Felix N. e. Petri Hautakangas

4. Group 4: Almost Bronze a. Anthony Gill

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b. Dean Van Dyke c. Michael Ervick d. Michael Santiago e. Mike Potter

Group Discussion Results:

• Continue o Continue to improve and grow programs that have positive results (Finance workshops and

Foundations)- Group 2 • Stop

o Less focus on content- Group 1 o Global Passport- Group 2

• Initiatives o Group 1

Community organizers to bring new groups of people together Create a place for new groups to come together

• Assess needs and make resources accessible to these groups o Group 2

Labor pool, job fairs Jumpstart pop-up

• Newer mentors with current skills • Help people to walk out with a business started

Specialized workshops • Focus on pitching techniques, e-commerce, and digital marketing

o Group 3 3 Track business model

• Provide workshops tailored individually to mid-size businesses, lifestyle businesses, and solo businesses

o Improves diversity and provides new businesses with a community of peers

o Group 4 Go into the ecosystem and connect resources Conduct a needs assessment

• Barriers o Private funding o Sponsors

Meeting Feedback:

• Positives o Good time management and organization o Diversity within groups o Brainstorming led to good quality ideas

• Negatives o More time would provide us with better ideas o No conclusion to meetings

Should have more solid goals with success metrics o More introduction o Food! o Connect ideas

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Next Steps: • Connect ideas that were formulated through brainstorming in groups • Produce measurable outcomes branching from these ideas

May 16, 2019 Meeting Purpose: The purpose of the meeting was to discuss top initiatives identified at the last Committee meeting and develop preliminary business plans. Meeting Process: Following a brief description of the top initiative identified at the last meeting (including Curriculum Enhancement, Collaborative Business Space, and Easy-to-Execute ideas) the group was divided into three to fill out preliminary business plans. The groups were tasked with identifying the resources, activities, costs, revenues, deliverables, outcomes, and impacts of the initiatives. Attendees and Groups:

1. Group 1: Collaborative Business Space a. Ellen Miller-Wolfe b. Chris Dodd c. Ashwin Muthuvenkataraman d. Michael Santiago e. Paul Ingalls f. Mike Potter g. Alex Fong h. Jesse Canedo i. John Sechrest

2. Group 2: Curriculum Enhancement a. Duncan Milloy b. Leslie Lum c. Dean Van Dyke d. Anthony Gill e. Lawrence Lerner f. Melissa Ventura

3. Group 3: Easy-to-Execute Ideas (Tapping into the Ecosystem, Adding to Our Mentor Base, and Bringing Together Startups and Potential Employees)

a. Michael Ervick b. Parteek Singh

Group Discussion Results: Group 1 (Collaborative Business Space) Metrics for real estate in the area were brought to the meeting (See attachment). The group discussed the possibility of having private offices for mentors, coworking space for small businesses, classroom/event space. It was mentioned that there is strong relationship between the space issue and “access to mentors”. Group members suggested running the space for a short period of time (pilot). However, the difficulty of leasing space for this purpose was noted. Group members mentioned that we should pay attention to the “types” of startups we serve because different startups will require different types of spaces. Some noted that it is important to identify our target audience (i.e. tech businesses or trades). Members decided that we must do some scouting to determine demand for the space.

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It also was mentioned that we should research other working spaces. There also was discussion about whether to screen businesses who might rent work spaces to develop a cohort who have common business development needs. The question of subsidizing Startup 425 was raised multiple times. There needs to be more discussion over who have we served versus who should we be serving. Group 2 (Curriculum Enhancement) The group discussed creating a framework for connecting startups to the right mentors. The 3 tracks from the last Advisory Committee meeting were discussed further (solopreneur, ‘lifestyle’, mid-size). Classes should depend on the needs of the individual startups. Enhancing curriculum will be a matter of deciding how to bucket existing knowledge on what’s out there as far as mentorship. This would not require a lot of overhead. Group members discussed that there has been positive feedback on marketing Foundations. However, it was mentioned that the Foundations focus on very basic content since attendees are new to the subject material. It was suggested that we break up workshops even more into longer lasting, more detailed classes with hands-on work opportunities. The group drafted a 3-by-3 matrix that can organize startups based on whether they are entry-level, in their first year, or in their second year and beyond as well as whether they are a solopreneur business, a lifestyle business (3-5 employees), or a mid-size business. There was discussion over possibly implementing sliding scale payments. Group 3 (Easy-to-Execute Ideas) The group discussed finding way to connect startups to the network. It was recommended that startups talk to local industry specialists before launching. Different startups have different kinds of resource needs. One suggestion included recruiting pools of interns or possible employees based on specific talents and connecting them with incubators and accelerators. Questions to be Answered: Group 1 stated that we must scout to determine demand for courses. We also need to check real estate numbers and research more on the success of other co-working spaces. Determining our main client will be important in deciding what kind of space we need for startups. It was mentioned that trades may need more help. Group 2 recommended that we hold longer meetings. It was also asked whether partner cities would want to structure curriculum based on the 3-by-3 matrix system. Next Steps: The Startup 425 Advisory Committee will be holding more meetings this Summer than planned. The meeting will be extended to four hours. In future meetings, we will continue to develop our main initiatives. Staff will research questions and get information out ahead of meetings so that members can digest. Also staff will seek feedback on the discussion from partner cities.

June 20, 2019 Meeting Purpose: The purpose of the meeting was to complete preliminary business plans for the top initiatives (Collaborative Business Space and Curriculum Enhancement) and implementation steps. Meeting Process: The meeting began with a presentation by Debbie Lacy, Co-Founder and Executive Director of the Eastside Refugee and Immigrant Coalition (ERIC), on the importance of a Welcoming Economy. Following this presentation, Ellen provided the committee with an overview of the research and development of the top initiatives that has occurred

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since the last meeting. Staff did a real estate analysis of office space in the five cities and price ranges, a visit to the Kenmore incubator, a review of business curricula, and we received input from the five city partners on the results of the previous meeting. The group was then divided into two to work on preliminary business plans and identifying next steps in the process of implementing the top initiatives. Attendees and Groups:

4. Group 1: Collaborative Business Space a. Ellen Miller-Wolfe b. Jesse Canedo c. Sarah Pyle d. Christopher Wright e. Michael Santiago f. Mike Potter g. Debbie Lacy

5. Group 2: Curriculum Enhancement a. Duncan Milloy b. Anthony Gill c. Janie Sacco d. John Sechrest e. Felix Ngoussou

Presentation by Debbie Lacy: A Welcoming Economy Debbie discussed how the foreign-born population along the Eastside is growing (with Redmond in the lead). Most foreign-born residents on the Eastside are from Asian countries. There are seven steps in the process of constructing a Welcoming Economy. These include government leadership, equitable access, civic engagement, education, economic development, safe communities, and connected communities. Debbie mentioned that immigrants make up 30% of new entrepreneurs in the US although they comprise only 13% of the country’s population. As a result, helping new immigrant entrepreneurs helps the economy overall. The presentation ended with a brief discussion of the “Eastside for All” initiative. A talk will be given September 20th, midday. More information will be provided. Group Discussion Results: Group 1 Colab (Collaborative Business Space) The discussion began with addressing the existing gap in collaborative space and the problem statement. Ideally, we hope to provide startups with a single place to go to have all questions answered and to be provided with all necessary resources. The group also stated that we hope to provide opportunities for networking between startups through hosting, sponsoring, or facilitating more network-building events. It also was suggested that we look at opportunities to sponsor hiring workshops and job fairs for small businesses. As a group, we set out to determine what sets us apart from other collaborative work spaces and if we should partner with someone who already offers this type of space. Alternatively, it was mentioned that there is a benefit to having a city-run collaborative space program. Staff noted that based on a legal opinion from the Kirkland City Attorney’s Office, we have limited ability to discount the cost or subsidize rates for renting space, and so pricing cannot be what sets us apart. On the issue of a selective process for choosing renters versus a first-come-first-serve program, we can do the former as long as there is substantial public benefit and equal opportunity for interested parties.

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Several ideas surrounding a collaborative workspace were mentioned in the group discussion including: • Entering a public/private partnership with an existing co-work space to supplement business mentoring

for tenants with 425 curricula• Offering a “pay to play” membership providing Startup 425 customers with exclusive access to resources

and specialized equipment• Formulating a resource center that includes desk rentals, space for mentors (such as the SBDC), and

event/conference/classroom space• Funding an additional staff member whose role is to be a central intake mechanism to manage

relationships with the ecosystem partners and operate the business space

Several group members suggested that we start at a smaller scale to pilot these ideas.

Group 2 Curriculum Enhancement

The group discussed gaps in content in our current Foundations courses. Options for new content in curriculum based on business size and age were also discussed. New content for sole proprietor businesses in their first year included: leadership training, human resources management, labor standards, contract management, taxation, access to capital, and financial planning (such as retirement, healthcare, 401K employees, etc.). New content for individuals considering starting a business included: greenhouse classes, ready to commit courses, and QuickBooks courses. New content for lifestyle businesses (3-5 employees, stable, no growth) in their first year included: cash flow projection, contractor-based estimating, succession planning, exit strategies, and merger and acquisition. New content for growth startups in their first year included: buying a business and alternative financing. New content for businesses with 20+ employees (scalable, mid-size) in their first year included: commercial real estate acquisition, import/export, strategic planning, team building, and meeting management.

It was suggested that offering curricula in different formats would be helpful. The group discussed some possibilities of differently formatted courses including online courses, one-on-one mentorships, and boot camps. Offering Startup 425 courses in different languages was suggested. Issues with pricing should be considered as they might create an accessibility barrier.

The group discussed what measurable goals may result from curriculum enhancement. These goals included increased number of business licenses per city and employee growth.

Next Steps:

Our next steps consist of conducting demand assessments for business space, resources, course content, and course formats. In analyzing different options for collaborative business spaces, we will compare costs, revenues, and feasibilities of different workspace options to conduct a risk analysis. This will allow us to provide possible partners with a strategy and help us to gain approval from Councils.

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2020 Action Plan November 25, 2019

Rationale:

The Innovation Triangle of Bellevue-Redmond-Kirkland is a rapidly growing global hub for innovation and technology. The Triangle is home to leading domestic and foreign technology enterprises that are engaged on the global business stage.

The cities of the Innovation Triangle are uniting locally to compete globally. They have a common goal of growing targeted industry clusters and establishing the region as a global hub for innovation. International trade and investment as essential elements to establish the region as a globally competitive and sustainable economic center.

Through this strategy, the Innovation Triangle will become a globally-recognized innovation and technology center, a vibrant and globally-competitive region, and a globally-engaged community.

Priority Sectors:

• Enterprise software• Interactive media (gaming and AR/VR)• Commercial space• Big-Data1

• Artificial intelligence & machine learning

Objectives:

1. Establish the Innovation Triangle as a globally-recognized center for technologyand innovation.

2. Continue to grow and strengthen investment in the Innovation Triangle’s prioritysectors to strengthen job creation and market diversification for our sharedeconomies.

3. Create a robust partnership among the Innovation Triangle members, supportedby data, that increases the region’s domestic and international businessengagement.

4. Establish an Initiative to emphasize the connectivity and livability of the Eastsideto improve our regional and international competitive edge.

1 Current listing on website, updated from previous year ‘cloud computing’ A - All, B - Bellevue, K - Kirkland, OR - OneRedmind

Attachment BE-

INNOV~TION TRl~NGLE

2

Strategies & Tactics:

Marketing Enhancement and Deployment:

Strategy: Develop and implement a national and international marketing strategy and collateral that portrays the Innovation Triangle as a leading center for innovation and technology.

o Develop and update more robust collateral: Lookbook, eliminate or improve (A) (B)

Update Website (A) (B)

• Enhance the Innovation Triangle cluster demographics and real-estate information, bike paths, etc. with the most recent data available. (OR)

• Refresh images (A)

o Swag (B)

o Develop a 2-5 minute video (A) (K)

o Expand Social Media presence, LinkedIn and Facebook ?

o Update PowerPoint (A)

Images (A)

Maps (A)

Bike information (K)

Business cluster demographics (OR)

Real-estate data (OR)

o Soft landing (A) (OR)

Investigate legal constraints (A)

Business Development:

Strategy: Undertake business development missions to grow the lead and prospect pipeline of technology companies in the five technology clusters for business attraction.

o Trade Shows: (A)

DICE (Design, Innovate, Communicate and Entertain) Summit (Feb 2020; Las Vegas): Market and promote the Innovation Triangle as an Interactive Media center. (OR)

SelectUSA (June 2020; Washington, DC): Market and promote the Innovation Triangle as a technology and innovation center to global technology companies exploring investment in the US. (A?) (B) (K)

Niche Trade Shows: (A)

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o Delegation Visits: (A)

Develop Criteria for accepting GSP offerings (A) (K?)

• Availability of Partners

• Related to target clusters

• Companies that are interested in locating in the region

• Certain level of success.

o Record Keeping:

Fix ‘Dynamics’ system (OR)

Maintain lead list (A)

Use lead list to publicize opportunities (OR)

Refresh lead list (A)

• bi-annually

• post trade show

2020 Implementation Timeline:

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct.

Explore Social Media Needs Implement Social Media Engagement Strategy

DICE Niche Trade Shows

Prep for SelectUSA SelectUSA

Ongoing Recruitment and Retention Support

Additional Updates to Collateral Assets Deploy Updated Collateral Assets

Media Updates

Represent Innovation Tringle at Delegation Visits

Planning for 2021

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Council Packet 1/7/20 - City of Kirkland

Documents

Transcript of Council Packet 1/7/20 - City of Kirkland