CITY OF WOODINVILLE, WA

REPORT TO THE CITY COUNCIL17301 133'd Avenue NE, Woodinville, WA 98072WWW.Cl.WOODINVtLLE.WA.US

TO: Honorable City Council

py@B; Brandon Buchanan, City Manager

Subject: 2018 State Legislative Priorities Discussion

Date: October 3, 2017

ISSUE: Shall the City Council discuss the 2018 State Legislative Priorities?

STAFF RECOMMENDATION: DiScuss 2018 State Legislative Priorities.

BACKGROUND/DISCUSSION: The 2018 Washington State Legislature is scheduled toconvene its 60- day regular session on January 8, 2018. The Assocratton of Washington Cities(AWC) is scheduled to host its annual City Action Days Conference in Olympta on January 24-

25, 2018 to give cities an opportunity to make direct contact with State officrals and discuss rssuesof local concern.

Traditionally, City Councilmembers who attend this conference meet with our local legislators topresent and explain the City's State Legislative agenda. In preparation of thns event, werecommend that the City Council discuss and agree upon the City's legtslatrve priorities whtchcan be transmitted to our legislators during these meetings. The Council may want to request anadvance meeting with area legislators in November or December this year, pnor to the sesston,to have more time with them to discuss the City's proposals.

In 2017, the Council adopted a set of legislative priorities for the City in addition to the generalmunicipal priorities championed by the Association of Washtngton Cities (AWC). The 2017Legislative session saw a nuThber of )jills-thmt-p-Thsse?i n posittv-eand negative ways. AWC produced a concise handout which outlines those outcomes for cittes(see Attachment 1). Also for revtew, Woodinville's 2017 Agenda is provided (see Attachment 2),

201 7 City Priorities 201 7 Session Outcomes

j - Little Bear Creek FishBarrier

No progress

2CM8

AgendaInclude

2 - SR 202 Gateway toDowntown

No progress Include

3 - Oppose Expansion ofDefinitton of Essenttal PublicFacilities

Successful in securing legislation Complete,do notinclude

4 - Protect SharedRevenues For Cities

Positive - Traditional shared revenues continued, Includenew internet sales tax collection effective 1/1/2018.

Negative - Streamlined Sales Tax (SST) mitigationphases out 1C 12019, no restoration of liquorrevenues for cities.

This year it is proposed that the City's Legislative Agenda again include both "Woodinville-specific" issues and general municipal issues. General municipal issues are typically addressedon behalf of Woodinville by the Association of Washington Cities (AWC) and the Sound CitresAssociation (SCA). AWC's specific legislative priorities will be announced at the AWC RegionalMeetings held this fall in various locations around the state. City staff is planning to attend thesession on November 1 in Edmonds. Councilmembers that are interested are encouraged toattend as well.

It should be noted that the legislature's meeting in 2018 is a short 60 day session. As of thewriting of this Report, the State has not passed a capital budget and it is likely that this will be ofhigh priority taking most of the focus. Also, it is probably unlikely that new capital budget requestswill be entertained for the coming year, especially with the continued uncertainty of State fundingstill required by the Supreme Court in the McCleary decision.

ALTERNATIVES:

"I. Discussandaddtothe2018StateLegislativePriorities2. Determine an appropriate timeframe to meet with local legislators representing Woodinville3. Schedule the matter for discussion at a future meeting

RECOMMENDED MOTION:

Discuss item only, no action necessary

Attachments:

1) Association ofWashington Cities 2017 Legislative Outcomes2) CityofWoodinville2017LegislativeAgenda

2

Attachment s

that cities can continue to provide open andtransparent government services to our residents

Pro - Legislature passed HB 1595 which amends the PRAto allow cities to charge a small fee for providing copies ofelectronic records, creates the ability to deny overwhelmingcomputer generated "bot" requests, prohibits overly- broadrequests for all records, and creates a way to apply a servicecharge to exceptionally complex requests.

Pro - Legislature passed HB 1594 which updates trainingrequirements for records officers, creates a grant program toimprove their public record management systems, establishesa program to consult on public records best practices, andupdates the process for asking a requestor to clarify a request.The bill also requires some new data collection processes.

f '5 Homelessness, Housing &Human Services

Enhance efforts to increase affomable housing, decreaisehomelessness, and improve a strained behavioral healthsystem

Pro - The document recording fee was extended for fouradditional years, which is the single biggest source of stateand local resources. New authorityto use REET dollars forhomeless housing was created for two years.

Pro - Funding was maintained for the Housing and EssentialNeeds (HEN) program, funding for implementation of the Sec.1115 Medicaid waiver, and TANF funding.

Con - There was noincrease in the document recording feeand only limited new tools.

Con - The Legislature's failure to adopt a capital budgetpostpones planned critical investments in mental healthfacilities around the state.

City- State PartnershipMaintain critical funding of key servicesand programs

Pro - State operating budgetfullyfunded traditional stateshared revenues at S21 0 million for 2017-1 9, including liquorand municipal criminal justice funds.

Pro - Passed EHB 2163 implementing state MarketplaceFairness Act sales tax collection or customer reporting for usetax by out of state internet retailers, effective January 1, 2018,increasing city sales tax revenues by S40.9 million for 2017- 1 9.

Pro-The budget provided necessaryfundingtotheCriminalJusticeTraining Commission (CJTC) to meet the immediatetraining needs for the Basic Law Enforcement Academy (BLEA).However, the budget only provided for16 classes per yearwhen the likely need is for18 classes in order to meet theexpected demand for training new officers.

Pro - The Legislature fully funded its commitment to theLEOFF 2 pension system. An earlier proposal would haveshifted S70 million ofthe state's commitment to cities.

Pro - The final budget provided additional funding for citiesfrom the Office of Public Defense competitive grant program.

Pro - Fully funded Municipal Research Services Center (MRSC).

Con - EHB 2163 phases out Streamlined SalesTax (SST)mitigation for cities and counties by October1, 2019.

Con - The final budget for 2017- 19 reneged on the agreementfrom 2015 by reducing the amount of marijuana mitigationrevenuesharingfrom !>15 million peryearto !>6 million peryear. However, there is a caveat that the money may berestored if the February 2018 revenue forecast meets a certainthreshold.

Con - Did not pass SHB 'l 1 13/SB 5240 to restore growth inthe local government share of liquor revenues.

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Local AuthorityRespect city local authority to respondto local needs

Pro - EHB 2005 passed requiring all cities to join the stateBusiness Licensing Service (BLS) by 2022 or FileLocal by2020 to administer business licenses, but protected localauthority to impose rates and enforce regulations. Establishedworkgroups on a business license threshold and local B&O taxservice income apportionment.

key infrastructure assistance programs4 that support job creation, community health and

safety, and quality of life

Pro - If the Legislature can resolve other disputes and pass acapital budget, legislators are poised to fund a Public WorksTrust Fund (PWTF) loan list for the first time since the 2011-

13 budget. They did show their support for continuing theprogram with the passage of HB '1677, the PWTF reform bill.

Pro - Successfully defended against proposals to limit cities'authorityto regulate and zone marijuana businesses.

Con - Did not pass HB 1764 replacing the one percentproperty tax revenue limit with a limit tied to populationgrowth and inflation.

Con - The diversion of tax revenues that would go into thePublicWorksTrust Fund was extended for anotherfouryears.The cash in the account was swept into the education budget,and partially replaced with bond funds (ifthey pass a capitalbudget) undermining the structure of this revolving loan fund.

Attachment 2

City of WoodinvilleS Legi slative Contact-B randon Buchanan, City Manager' Phone-425.877.2265

g Email -b tandonb@ci.woodinville.wa.us€%l

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PROJECT-SR 202 GATEWAY TO DOWNTOWN WOODINVILLE

"The, Cit5r of Woodinville is developing a ptoject to wiaen SR 202(131" AveNIj:) f t qm ,SR522 to downtown W6odinville. T:s is the city'smain eri;ance,to thehighway syste,m.

The curtent 4-lane highway is undetsized; inftasttuchite stu&s show that: up,to 8 laties-in s6me ateas would ptovi4e the capaeity rieeded to serve'theaaty's tetaileore, cqrnmetc8al and industtial ateas,pass- through ttaffic and new consttuction'. '

7he City ofWoodinviue is ptoposing, in its 2017- 2018 budget, an initial$500,000 fot consttuction design, but anticipates needing additionalconstruction funds in the future. This ptojectwould signfficandyreduce tegionaltraffic congestion.

GATEWAY TRAFFIC

CONGESTION

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CITYOFWOOI)WVILIE i 17301 133-' AVJ3NUENE, WOOD<, WA 98072 i 425.877.2265 1

w Item 3-o€N POSITION- OPPOSEEXPANDINGDEFINITIONOFESSENTIALPUBLICFACILITI ES

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@rh:fcityorwooainyiiie'is'fnsttong'opposi;ontoanyiegisiationwhich would expand 'the definition of Essential Public Facilities to inc!ude

.urban- serving school"facilities.

This positiqri.is due. to the difficulties:that ffiise out6f the need'to p.tovide utbart ,

jevels of serviee for faities.%ocmted outside of the at5r.urbati gtowth atea (QGA),

- Additionanj, allo% utban-serg schools t6 belocated.aoutside the UGA is

antithetical to a'fundamental'C44 jyriticiple - avoidirig spilling overof.'urban

serffces int6.designate4,mtal ateas, creatingptess';e for altering:the UGA itself

an4'inducing utban dev41opment; '

Thete is a'm6rjg desiye to ensute $at ttafJic @nd utility impacts ;e properly

ad:esse4 fori those.facilities which :ectly s:rve out 4en and couJdhave'potential safety irnplica0ons.

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POSITION-PROTECT SHARED REVF,NUES WITH CITIES

The Cityof Woodinvilletequests th'at'state s0ared' teyenues mdi cities

rema%rotected apd continue at current funding levels.

,e State of 'pashington has a.Iong'atid.mutually,beneficial histpry.o{ shg

cett: state- assessed revenues with qities,(e.g., liquor taffies, gas taxes'and certain

WASHINGTON STATE TAX

REVENUE SOURCF,S

h Genetal Sales-45.46%

* Property-30.53%* *Selective Sales-16,28oA

* Othet-5.95%

'Note-Selective sales indudes motor

fite4 alcobolic beverages, tobacco

produds andpublit: dijities.

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CITYOFWOODINVIIIE i 17301 133-d AVENUENE, WOODd, WA 98072 l 425Jj77.2265 2