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HomeMy WebLinkAbout2017-033 Annual Vehicle Licensing Fee & TBD Disclosure AgreementORDINANCE NO. 2017-033 ORDINANCE of the City of Yakima, Washington establishing an annual vehicle license fee; and fixing a time when the same shall become effective. WHEREAS, on January 10, 2017, the City Council created the City of Yakima Transportation Benefit District ("TBD") with boundaries coterminous with the boundaries of the City of Yakima, all in accordance with Chapter 36.73 RCW; and WHEREAS, on January 10, 2017 the City Council assumed the rights, powers, immunities, functions, and obligations of a transportation benefit district; and WHEREAS, on March 21, 2017 the City Council amended the TBD Project list which identifies projects within the City that constitute transportation improvements that may be funded by the TBD; and WHEREAS, the City Council finds it to be in the best interest of the city to establish an annual vehicle license fee in the amount of twenty dollars ($20.00) for the purpose of preserving, maintaining, operating, construction, or reconstructing the transportation infrastructure and funding transportation improvements that have been identified in the approved project list; now, therefore; BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. An annual vehicle license fee of twenty dollars ($20.00) is hereby established consistent with the Revised Code of Washington (RCW) section 36.73.065, as written or hereafter amended, to be collected by the Washington Department of Licensing on qualifying vehicles as set forth in RCW 82.80.140, as written or hereafter amended. Section 2. The annual vehicle license fee shall take effect for notices mailed in 2018 for vehicle license renewals due on or after July 1, 2018, or as soon thereafter as the Washington Department of Licensing is reasonably able to incorporate collection of the twenty dollar fee; but in no event shall the vehicle license fee be collected sooner than one hundred and eighty (180) days after approval of this ordinance, pursuant to RCW 36.73.065 and RCW 82.80.140. The vehicle license fee shall be collected during the term of the existence of the District and shall cease to be collected upon dissolution. Section 3. The City Council directs the City Clerk to notify the Washington Department of Licensing of the vehicle license fee established in Section 1 of this Ordinance and to request that they take all steps necessary to implement collection of this fee in accordance with RCW 82.80.140. Section 4. If any portion or section of this Ordinance should be held to be unconstitutional, invalid, or unenforceable for any reason, such finding shall not affect the constitutionality, validity, or enforceability of any other portion or section of this Ordinance. Section 5. This ordinance shall become effective and shall be in full force and effect 30 days after its passage and publication in accordance with law. PASSED BY THE CITY COUNCIL this 5th day of December, 2017. ATTEST: thy Coff Sonya'Cfaar Tee, City Cle Publication Date: December 8, 201 Effective Date: January 7, 2018 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT 1 Item No. 12. For Meeting of: December 5, 2017 ITEM TITLE: Ordinance establishing an annual vehicle license fee; and fixing a time when the same shall become effective SUBMITTED BY: Tara Lewis, Financial Services Manager Bronson Faul, Senior Assistant City Attorney SUMMARY EXPLANATION: On January 10, 2017, the City Council created the Transportation Benefit District ("TBD") and assumed the rights, powers, immunities, functions and obligations of a transportation benefit district. On March 21, 2017, the City Council amended the TBD project list to identify the projects within the City that constitute transportation improvements that may be funded by the TBD. This proposed ordinance establishes an annual vehicle license fee in the amount of twenty dollars ($20.00) for the purpose of preserving, maintaining, operating, construction, or reconstructing the transportation infrastructure and funding transportation improvements that have been identified in the approved project list. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Neighborhood and Community Building APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Pass ordinance BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description D TBD $20 ordinance D TBD2018 Upload Date 11/20/2017 11/28/2017 Type Coyer Memo Corer Memo 2 5 2018 REVENUE POLICY ISSUE FUNDING THE TRANSPORTATION BENEFIT DISTRICT SUMMARY PROPOSAL This policy issue is a proposal to fund the Transportation Benefit District (TBD). History Early in 2017 Council established a Transportation Benefit District (TBD) which became effective on February 12, 2017. Council then approved a 20 year project list on March 7, 2017 to address sidewalk and street conditions around the City, but no funding source was approved. This proposal brings back the funding of the TBD by a vehicle tab fee for consideration of inclusion in the 2018 Budget. This option would generate revenue to restore streets and sidewalks by leveraging any available grant funding or debt funding to increase the overall impact of the project list. Without additional funding it is unlikely that all the projects on the current list could be undertaken during the 20 year time frame. Charter Amendment funding is tied up in debt service over the next 7 to 10 years which will preclude any new large projects not fully funded by grants or dedicated revenue sources. This revenue would be dedicated to fulfilling the project list. The impact to vehicle owners would be $20 per year per vehicle licensed in the City. This proposal is aimed at reducing the risk associated with the postponement or failure to maintain infrastructure leading to considerably higher costs to replace that infrastructure should it fail in the future. Attachments • The TBD project list adopted in March 2017 • TBD funding options • A list of Washington cities that have established and funded a TBD including their funding source and amount. • Excerpts from the 2017 Policy Issue that was not adopted into the 2017 Budget but contains additional history and regulation references. Impacts 1. Fiscal Impact - $1.3 to $1.5 million annually 2. Proposed Funding Source - Street Construction Fund. 3. Public Impact - Additional car tab fee to fund needed sidewalk and street improvements. 4. Personnel Impact - None. 5. Required Changes in City Regulations or Policies - Create an ordinance setting forth the new fee. Contract with Department of Licensing to collect the fee. 6. Legal Constraints, if applicable - Council can only impose up to a $20 fee. 7. Viable Alternatives - This is a Council decision. 2018 Preliminary Budget - 5 Notes: • • • • • TRANSPORTATION BENEFIT DISTRICT PROJECT LIST Project District(s) Estimated Construction Cost N. 1st Street Revitalization, Phase 2 (20 year bond) 6th Avenue Roadway Improvements River Road Improvements, 40th to 34th (Aquatic Center) 1st Street and Washington Avenue I/S Improvements Nob Hill Boulevard and Fair Avenue I/S Improvements Powerhouse Road and Englewood Avenue I/s Improvements 3rd Avenue Sidewalk: Nob Hill to Walnut Naches Avenue Sidewalk: Walnut to Pacific 4th Street Sidewalk: Walnut to Pacific Chestnut Avenue Sidewalk: 56th Ave. to 70th Ave. Mead Avenue Sidewalk: 27th Ave. to 28th Ave. Browne Avenue Sidewalk: 7th Ave. to 16th Ave. Mead Avenue Pedestrian Signal at 10th Avenue 44th Avenue Sidewalk: Viola to Randall Park Pacific Avenue Sidewalk: Fair Avenue to Jail Property Fair Avenue Sidewalk: Pacific Avenue to Nob Hill Boulevard Nob Hill Boulevard Sidewalk: 12th Street to 14th Street 88th Avenue Sidewalk: Tieton Drive to Summitview Avenue N. 16th Avenue Sidewalk: Fruitvale Boulevard to River Road 1,4,5 1,5 5 3 2 5 4 2 2 6 3 5 3 7 2 2 2 6 5 Total: TRANSPORTATION BENEFIT DISTRICT FUNDING OPTIONS Option Vehicles Tab Fee Annual $10,802,260 5,591,760 750,000 2,000,000 256,000 728,000 480,000 330,000 315,000 448,200 17,000 336,000 300,000 275,000 300,000 370,000 130,000 650,000 250,000 $24,329,220 Estimated Construction 20 years Contingency 1 76,000 2 76,000 3 76,000 $20.00 18.00 17.00 $1,504,800 1,354,320 1,279,080 $30,096,000 27,086,400 25,581,600 $5,766,780 2,757,180 1,252,380 6 The Department of Licensing estimates there are currently approximately 76,000 vehicles in the City of Yakima. Due to the fixed nature of debt service on large projects contained in the list, it is recommended that a conservative approach be used to estimate project cost and incoming revenue. Should the revenue generated by the TBD funding exceed the ultimate cost of the projects, the project list may be expanded at that time or the TBD discontinued early once debt service obligations have been met. The State charges 1% of the revenue collected as a service fee. The "Annual" amount is net of this fee. Potential excess estimated revenues are shown as "Contingency" in the Chart. 2018 Preliminary Budget - 6 7 LIST OF WASHINGTON CITIES THAT HAVE ESTABLISHED TBD'S Jurisdiction Year TBD Established Funding Source Aberdeen Airway Heights Anacortes Arlington Bainbridge Island Battle Ground Bellingham Black Diamond Bremerton Bridgeport Buckley Burien Carbonado Castle Rock Centralia Clarkston Covington Dayton Des Moines DuPont East Wenatchee Eatonville Edgewood Edmonds Electric City Ellensburg Elmer City Enumclaw Everett Ferndale Fife Friday Harbor Grandview Granite Falls Kalama Kelso Kenmore Kittitas Lake Forest Park Lakewood Leavenworth 2012 0.13% sales tax 2013 0.20% sales tax 2014 $20 vehicle license fee 2013 0.20% sales tax 2012 $20 vehicle license fee 2014 $20 vehicle license fee 2010 0.20% sales tax 2015 $20 vehicle license fee 2009 $20 vehicle license fee 2017 $20 vehicle license fee 2012 $20 vehicle license fee 2009 $10 vehicle license fee 2012 $20 vehicle license fee 2012 0.20% sales tax 2014 0.20% sales tax 2014 0.20% sales tax - replaced a $20 vehicle license fee 2013 $20 vehicle license fee 2014 0.20% sales tax 2008 $40 vehicle license fee (nonvoted) 2013 $20 vehicle license fee 2012 $20 vehicle license fee 2012 $20 vehicle license fee 2013 $20 vehicle license fee 2008 $20 vehicle license fee 2012 $20 vehicle license fee 2015 0.20% sales tax 2015 $20 vehicle license fee 2013 $20 vehicle license fee, 0.10% sales tax 2014 $20 vehicle license fee 2011 0.20% sales tax 2015 $20 vehicle license fee 2014 0.20% sales tax 2011 $20 vehicle license fee 2015 $20 vehicle license fee 2012 $20 vehicle license fee 2012 $20 vehicle license fee 2012 $20 vehicle license fee 2012 $20 vehicle license fee 2008 $40 vehicle license fee 2012 $20 vehicle license fee 2010 0.20% sales tax 2018 Preliminary Budget - 7 8 LIST OF WASHINGTON CITIES THAT HAVE ESTABLISHED TBD'S Jurisdiction Year TBD Established Funding Source Longview Lynden Lynnwood Mabton Maple Valley Marysville Mattawa Mercer Island Monroe Mountlake Terrace Moses Lake Mount Vernon Normandy Park North Bend Olympia Orting Othello Port Orchard Prosser Richland Ridgefield Roy Royal City Seattle Sedro-Woolley Sequim Shelton Shoreline Snohomish Snoqualmie Soap Lake Spokane Stanwood Tacoma Toppenish Tumwater Twisp University Place Vancouver Waitsburg Walla Walla 2017 $20 vehicle license fee 2012 0.20% sales tax 2010 $40 vehicle license fee, 0.1% sales tax 2011 $20 vehicle license fee 2012 $20 vehicle license fee 2013 0.20% sales tax 2015 0.20% sales tax 2014 $20 vehicle license fee 2012 0.20% sales tax 2011 $20 vehicle license fee 2017 $20 vehicle license fee 2016 0.2% sales tax 2013 $20 vehicle license fee 2011 0.20% sales tax 2008 $40 vehicle license fee 2011 $20 vehicle license fee 2012 0.20% sales tax 2015 $20 vehicle license fee 2009 $20 vehicle license fee 2018 $20 vehicle license fee 2008 Unfunded - 0.2% sales tax repealed in 2012 2014 $20 vehicle license fee 2012 $20 vehicle license fee 2010 $80 vehicle license fee, 0.10% sales tax 2014 $20 vehicle license fee 2008 0.20% sales tax 2015 0.20% sales tax 2009 $20 vehicle license fee 2010 0.20% sales tax 2010 $20 vehicle license fee 2013 $20 vehicle license fee 2011 $20 vehicle license fee 2012 0.20% sales tax 2012 $20 vehicle license fee, 0.10% sales tax 2012 $20 vehicle license fee 2014 0.20% sales tax 2016 0.20% sales tax 2009 $20 vehicle license fee 2015 $20 vehicle license fee 2012 0.10% sales tax 2011 0.20% sales tax 2018 Preliminary Budget - 8 LIST OF WASHINGTON CITIES THAT HAVE ESTABLISHED TBD'S Jurisdiction Year TBD Established Funding Source Wapato 2012 $20 vehicle license fee Wenatchee 2011 $20 vehicle license fee Wilkeson 2014 $20 vehicle license fee Zillah 2011 $20 vehicle license fee 9 2018 Preliminary Budget - 9 10 Excerpt of TBD Rules and History from 2017 Budget Proposal Creating a TBD The laws surrounding TBD's can be found in the Revised Code of Washington Chapter 36.73 and the related citations found there. The legislative authority has the power to form a TBD and make the initial decision regarding transportation improvements. Once the transportation improvements have been identified, the Council must conduct a public hearing with at least ten days' notice. Following the hearing, Council may establish the TBD by ordinance if they make the finding that the action is in the public interest. There are a number of requirements for the ordinance establishing the TBD that must include the functions and transportation improvements to be funded then also establish the boundaries of the TBD. To take advantage of some other benefits in the law, the boundaries should be the city limits. The transportation improvements proposed may not be expanded beyond those that were included in the initial hearing notice unless there are further notices and findings are made that it would be in the public interest to expand the improvements. Once formed, the Council acts as ex officio and independent members of the TBD governing body. The City treasurer acts as the ex officio treasurer and the registered voters residing within the district are the electors. Funding a TBD There are multiple funding options once a TBD has been established. The most common is a $20 vehicle license fee and can be established with a vote of the governing board if the boundaries of the TBD are the same as the boundaries of the City. After 24 months the fee can be increased to $40 by the governing board and then to $50 after another 24 months. An important note is that actual fee cannot be imposed within 180 days after being passed and that the department of licensing will keep a 1% administrative fee. The only other revenue that may be imposed without a vote of the electors are fees on certain construction projects but the fees have to be reasonably necessary as a result of the impact of construction. All other funding sources must be approved by a vote of the electors. They include a one year ad valorem property tax, an ad valorem property tax to pay off voter approved general obligation bonds, vehicle tolls and a sales tax. Projects The legislature has defined "transportation project" to mean a project contained in the transportation plan of the state, a regional transportation planning organization, city, county, or eligible jurisdiction. A project may include investment in new or existing highways of statewide significance, principal arterials of regional significance, high capacity transportation, public transportation, and other transportation projects and programs of regional or statewide significance including transportation demand management. Projects may also include the operation, preservation, and maintenance of these facilities or programs. There is also a set of criteria that have to be considered when choosing which transportation improvements to put on the project list and includes improved travel times, air quality, freight mobility and other criteria as may be developed by the governing body. 2018 Preliminary Budget -10 11 Material Change Policy and Annual Report The TBD shall also develop a material change policy to address major plan changes that affect project delivery and financing. At a minimum, the policy must address material changes to cost, scope, and schedule, the level of change that will require governing body involvement, and how the governing body will address those changes. The policy must also include a provision that if a transportation cost exceeds its original cost by more than twenty percent, there will be a public hearing to solicit comment from the public regarding how the cost change should be resolved. Another requirement is the TBD shall issue an annual report to the public and newspapers indicating the status of costs, expenditures, revenues, and schedules. Termination Once construction is complete, the TBD must terminate day-to-day operations and exist as a limited entity that oversees the collection of revenue and the payment of debt still in effect. When the debt is complete and paid, the TBD has thirty days to dissolve itself with notice of the dissolution published. Assumption In 2015, the legislature allowed for a city to assume the rights, powers, functions, and obligations of the TBD after notice and a hearing. This can be done through ordinance or resolution and after a finding that the public interest or welfare would be satisfied by the city assuming those duties and obligations. 2018 Preliminary Budget -11 O{ -24: i 7 - Q33 DocuSign Envelope ID:C5995D72-4A10-418E-8764-557B2EC5A559 Revised 12-10-2015 TRANSPORTATION BENEFIT DISTRICT (TBD) WASHINGTON STATE DEPARTMENT OF DOL Contract No. K6376 g•m LICENSING DISCLOSURE AGREEMENT TBD Contract No Upon execution, this Contract is entered into by and between Washington State, Department of Licensing (hereinafter called "DOL"or"Department"), and the Yakima Transportation Benefit District(hereinafter called "TBD" or "Contractor") listed below. Contract Start Date Contract End Date Contractor Amount Date of execution Extend through the life of the TBD 1%of each $20.00 fee collected will be paid to DOL Purpose(brief description) The purpose of this Contract is to provide the terms and conditions under which DOL shall administer and collect fees on behalf of cities who have established a Transportation Benefit District(TBD) in order to provide the funding for transportation improvements within the TBD's area. CONTRACTOR CONTACT INFORMATION Contractor Address Uniform business identifier Employment Identification Number(EIN) 129 North 2nd Street (UBI) Yakima,WA 98901 TBD Contract Manager TBD Phone Contractor Fax Contractor E-Mail Address Danny Agsalog 509-576-6644 509-576-6364 Danny.agsalog@yakimawa.gov Contractor Additional Contact#2 Contact#2 Phone Contact#2 Fax Contact#2 E-Mail Address Brett Sheffield 509-575-6111 509-576-6383 DEPARTMENT OF LICENSING(DOL)CONTACT INFORMATION DOL Division DOL Administration Programs and Services Data Sharing Contracts Unit Contract Manager DOL Contact Address Debbie Dunn, Data Sharing Contracts Manager PO BOX 2076 Olympia WA, 98507-2076 Contract Manager telephone Contract Manager E-Mail 360-902-0136 DataContracts@dol.wa.gov AUTHORITY In accordance with, RCW 36.73.065, RCW 39.34, RCW 46.17, RCW 82.80.140, WAC 308-10, Chapter 18 USC sec. 2721-2725 Driver Privacy Protection Act(DPPA), and Executive Order 97-01, and all applicable laws as currently written or hereafter amended. ATTACHMENTS This following are attached and incorporated herein and/or by reference (Check all applicable) ®A=General Terms and Conditions ® B = Statement of Work ® C =Vehicles Subject To Fees ® D =Vehicles Not Subject To Fees The terms and conditions of this Contract are an integration and representation of the final, entire and exclusive understanding between the parties superseding and cancel all previous agreements, writings, and communications, oral or otherwise regarding the subject matter of this Contract, between the parties. IN WITNESS WHEREOF,the parties have executed this Contract and affirm they have read and understand all terms and conditions of this Contract and have the authority to bind their respective parties to the terms and conditions of this Contract. ContrDiff gccAoe iviature Date Signed DOL Signature Date Signed —DoeuSigned by: IMDOVt, 12/14/2017 fit a PDIA vatiA, 12/15/2017 5491076739445E... '-53D1067BC3EF417... Print Name and Title Print Name and Title Cliff Moore Tamara Dohrman City Manager Assistant Director, Administrative Services Division Cliff.moore• yakimawa.gov Department of Licensing CITY CONTRACT NO: `742/r Rest:U?ION•NO: 47rGr .7 '/7-o3 3 12/13/2017 Page 1 of 8 K6376 DocuSign Envelope ID: C5995D72-4A10-418E-8764-557B2EC5A559 ATTACHMENT A GENERAL TERMS AND CONDITIONS THEREFORE, IT IS MUTUALLY AGREED THAT: 1. DEFINITIONS As used throughout this Contract the following terms shall have the meanings set forth below: a. "Administrative and Collection Expenses" means the Direct and Indirect Cost associated with the collection of the TBD fees, including but not limited to information technology services to implement and support the collection of TBD fees; accounting for and payment of fees to the TBD; Contract administration; and management analysis as well as other incidental administrative overhead, and includes the costs associated with optional access to the Internet Vehicle Information Processing System (IVIPS). It does not include record inquiries by TBD (under an IVIPS contract). b. "Authorized User" means TBD officers, and employees, or any other authorized agent or official of the TBD. c. "Billing Cycle" means the annual vehicle registration renewal. d. "Direct Cost" shall include, but is not limited to, all operating, equipment and personnel costs used to furnish the information, reruns and/or additional data runs, costs materials and data integrity costs directly related to the monthly production and maintenance of these data files. e. "District" means all the territory within the boundaries of the TBD's jurisdiction establishing the District. f. "DOL File" means the data file received from a third party used by DOL as the primary GIS data source to assess TBD fees. g. "GIS" means the Geographical Information System data provided to DOL by a third party. "Indirect Cost"shall include, but is not limited to, auditing, answering complaints, correspondence, administrative overhead, building rents, related utilities, and other expenses identified as Indirect Costs by the Director of DOL. h. "Location Code" means the four digit number that corresponds to a TBD jurisdiction that is used by DOL when assessing the TBD fee. The four digit number is derived from the Department of Revenue's sales and use tax Location Code information. i. "Next Billing Cycle" means the Billing Cycle that occurs during the 12th month following the current Billing Cycle. For example, if a renewal is sent for a due date in the month of January 2014, the Next Billing Cycle will be January 2015. j. "RCW" means Revised Code of Washington. k. "Subcontractor' means a person or entity not in the employment of the TBD named in this Contract, but who is performing all or part of those services outlined in this Contract under a separate Contract with the TBD. The terms "subcontractor"and "subcontractors" mean subcontractor(s) in any tier. 2. STATEMENT OF WORK The parties to this Contract shall furnish the necessary personnel, equipment, material and/or service(s) and otherwise do all things necessary for or incidental to the exchange of data as set forth in the Attachment B, Statement of Work, Attachment C, Vehicles Subject To Fees, and Attachment D, Vehicles Not Subject to Fees,that are attached and incorporated by reference. 3. PERIOD OF PERFORMANCE Subject to its other provisions, this Contract is subject to review as necessary to review applicable law changes that affect this Contract and the provision herein, or as is otherwise required herein. 4. FEE COLLECTION Fee collection may not be sooner than six(6) months from the signed and dated Ordinance or Resolution creating the TBD fee. 4.1.PAYMENT/REIMBURSEMENT a. DOL shall deduct a percentage amount, as provided in RCW 82.80.140, of one percent (1%) of the twenty dollar($20.00) fee collected for Administration and Collection Expenses incurred. b. DOL shall automatically deduct one percent (1%) at the time of each transaction. c. DOL shall certify the release of the proceeds to the state treasurer, and the state treasurer shall distribute the proceeds to the TBD on a monthly basis depending upon their disbursement schedule. d. The one percent (1%) fee is a maximum permitted by statute and is based upon the costs associated with the Administration and Collection Expenses for the TBD. 5. RECORDS and DOCUMENTS The parties to this Contract shall each maintain books, records, documents and other evidence,which sufficiently and properly reflect all Direct and Indirect Costs expended by either party in the performance of the service(s) described herein. These records shall be subject to inspection, review or audit by authorized personnel of either party,the Office of Attachment A, General Terms And Conditions Page 2 of 8 DocuSign Envelope ID: C5995D72-4A10-418E-8764-557B2EC5A559 the State Auditor, and other government officials so authorized by law for the period such records are required to be retained according to the Washington State Retention Schedule. Each party will utilize reasonable security procedures and protections to assure that records and documents provided by the other party are not erroneously disclosed to third parties, except as required by law. 6. ASSURANCES DOL and the Contractor agree all activity pursuant to this Contract will be in accordance with all applicable current or future federal, state and local laws, rules, and regulations. 7. PUBLIC RECORDS REQUESTS For any public records request received by the TBD for confidential information, the TBD will coordinate with DOL in an effort to mutually agree upon the information to be disseminated. If the TBD and DOL disagree, the TBD will provide DOL at least ten (10) days in order to allow DOL to seek judicial review as provided under the Public Records Act. 8. INDEMNITY Except as specifically provided in this section, the parties have not agreed to indemnify or hold harmless each other. a. Each party agrees to hold harmless and indemnify the other from any claim, loss or liability arising from or out of the employment or contractual relationship of each parties' employees and Subcontractors. b. DOL agrees to bear all costs associated with the resolution of fee payer disputes regarding statutory exemption from license fees and agrees to hold harmless and indemnify the TBD from such costs. c. TBD agrees to bear all costs associated with the resolution of fee payer disputes relating to the formation of the TBD, the levying of any charge or fee on matters relating to the residence of the fee payer or other disputes relating to the location of the vehicle or fee payer, and agrees to hold harmless and indemnify the DOL from such costs. d. The term "cost" as used herein refers to any and all administrative costs, court costs and reasonable attorneys' fees associated with resolution of any claim, loss or liability. 9. INDEPENDENT CAPACITY The employees or agents of each party who are engaged in the performance of this Contract shall continue to be employees or agents of that party and shall not be considered for any purpose to be employees or agents of the other party. 10. CONTRACT ALTERATIONS AND AMENDMENTS This Contract may be amended by mutual consent of the parties. Such amendments shall not be binding unless they are in writing and signed by personnel authorized to bind each of the parties. 11. MEMORANDUM OF UNDERSTANDING (MOU) Any communications that either contract manager determines to address more than day-to-day concerns, but do not modify the terms of this Contract, shall be documented by a written, numbered and dated Memorandum of Understanding (MOU). 12. TERMINATION BY LEGISLATIVE ACTION This Contract is terminated upon formal action of the State Legislature by enacting statutory prohibition. If this Contract is terminated, DOL is entitled to payments required under the terms of this Contract for services rendered prior to termination. 13. REMEDIES DISPUTE RESOLUTION The relationship of the parties is in part defined by statute. In recognition of the parties' relationship and the lack of alternatives for the collection of fees, the parties have established these provisions regarding their respective rights and remedies. 13.1 Dispute Resolution The parties shall attempt to resolve any dispute between the parties regarding the interpretation or performance under this Contract at a staff level. If a party believes the other to be in breach of this Contract, it shall provide written notice of breach to the party via postage paid in the U.S. mail using addresses as provided on page one (1) of this Contract. The alleged party in breach shall have ten (10) business days to either cure the breach or refer any dispute to arbitration by the Dispute Board. Attachment A, General Terms And Conditions Page 3 of 8 DocuSign Envelope ID: C5995D72-4A10-418E-8764-557B2EC5A559 The Dispute Board shall attempt to resolve the dispute in the following manner prior to seeking judicial review. Due to the critical nature of the parties statutory obligations, disputes regarding public records shall not be subject to this procedure, except as provided in Section 7, Public Records Request. Additional procedures are provided for alleged breach of confidentiality. a. Each party to this Contract shall appoint one member to the Dispute Board. b. The members so appointed shall jointly appoint an additional member to the Dispute Board. c. The Dispute Board shall review the facts, Contract terms, applicable statutes and rules and make a determination. 14. GOVERNANCE This Contract shall be construed and interpreted in accordance with the laws of the state of Washington and the venue of any action brought under this Contract shall be in the Superior Court for Thurston County. 15. ORDER OF PRECEDENCE In the event of an inconsistency in this Contract, unless otherwise provided in this Contract, the inconsistency shall be resolved by giving precedence in the following order: 1. Applicable federal and Washington State laws, statutes and regulations; 2. Attachment A, General Terms and Conditions; 3. Attachment B, Statement of Work; Attachments C, Vehicles Subject to Fees; and Attachments D, Vehicles not Subject to Fees; and 4. Any other provisions of this Contract and documents incorporated by reference or otherwise. 5. 16. ASSIGNMENT Any city or county in which a Transportation Benefit District has been established pursuant to chapter 36.73 RCW with boundaries coterminous with the boundaries of the city or county may by ordanance or resolution of the city or county legislative authority assume the rights, powers, functions, and obligations of the Transportation Benefit District in accordance with Washington law. The city or county, within ten business days, notify DOL of the passage of such ordanance or resolution and provide a copy. The parties will work coorperatively in the transition of the rights, powers, functions, and obligations of the Transportation Benefit District. 17. WAIVER Unless the Contract is amended in writing by an authorized representative of DOL and the TBD, waiver of a default under this Contract, or failure by DOL or the TBD to exercise its rights shall not be considered a modification or amendment to the Contract; or constitute a waiver of any subsequent default. 18. LIMITATION OF STATE LIABILITY The parties agree that in no event shall the state of Washington, the Department, the Director of the Department or any Department employees, be liable to Contractor for any damages, costs, lost production, or any other loss of any kind for failure of the Department's equipment, hardware or software to perform for any reason, or for the loss of consequential damage which is the result of acts of God, strikes, lockouts, riots, acts of war, epidemics, acts of fire, failure of communications or computer equipment, facilities, or software, power failures, nuclear accidents or other disasters. The state of Washington, the Department, the Director of the Department or any Department employee shall not be liable for any claim of any nature against Contractor by any party arising from any failure in the service furnished by the Department under this Contract, for any errors, mistakes or acts on the part of the Department or its agents which result in the failure of the Department's equipment or software which fails to perform for any reason or for any other loss or consequential damage which is a result of acts of God, strikes, lockouts, riots, acts of war, epidemics, acts of fire, failure of communications or computer equipment, facilities, or software, power failures, nuclear accidents or other disasters. 19. SEVERABILITY If any provision of this Contract or any provision of any document incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this Contract which can be given effect without the invalid provision, if such remainder conforms to the requirements of applicable law and the fundamental purpose of this Contract, and to this end the provisions of this Contract are declared to be severable. 20. INTERLOCAL CONTRACT This is an interlocal Contract entered into pursuant to the authorization of chapter 39.34 RCW. Accordingly, the following provisions are set forth in accordance with the provisions of RCW 39.34.030. a. This Contract shall be perpetual unless terminated as herein provided. b. No separate legal or administrative entity is created by this Contract. Attachment A, General Terms And Conditions Page 4 of 8 DocuSign Envelope ID: C5995D72-4A10-418E-8764-557B2EC5A559 c. The cooperative undertakings of the parties shall be financed as provided herein. Each party shall separately establish and maintain a budget for its own functions. d. No joint property shall be acquired, held or disposed of. Any real or personal property used in the joint or cooperative undertaking shall be considered to be and remain the property of the party who purchased such real or personal property. e. This Contract shall be effective when posted on the website of either the DOL or the jurisdiction in which the TBD has been created in accordance with RCW 39.34.040. 21. CONTRACT MANAGEMENT The contract manager for each of the parties as named on page one (1) of this Contract shall be responsible for and shall be the contact person for all communications and billings regarding the performance of this Contract. ***THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK*** Attachment A, General Terms And Conditions Page 5 of 8 DocuSign Envelope ID: C5995D72-4A10-418E-8764-557B2EC5A559 Revised 12-10-2015 ATTACHMENT B STATEMENT OF WORK 7. FOR ADMINISTRATION AND COLLECTION OF THE VEHICLE FEE The Transportation Benefit District (TBD), or the city/county if they are legally assigned responsibility, shall furnish the necessary personnel, equipment, material and/or services and otherwise do all things necessary for or incidental to the performance of work as set forth below. 8. RESPONSIBILITIES OF THE TBD The TBD shall: a. Be the primary point of contact to respond to inquiries or disputes from citizens who have questions about the fee. b. Handle all contacts and/or disputes regarding boundaries and/or questions regarding the TBD or its collection of fees. c. Agree that any omitted or incorrect addresses that result in the fee not being charged for the current Billing Cycle will not be collected by DOL during the current cycle. DOL will charge the fee during the Next Billing Cycle if GIS data is updated by the data provider, DOL has a reasonable amount of time to accomplish necessary computer changes, and the address is within the TBD boundary. d. Process and issue any refunds or shortages that may be due. It is anticipated that TBD refunds will be largely due to boundary disputes. e. Verify boundary information of the TBD against the information provided in the GIS system to ensure an address taxing Location Code is appropriately identified for fee collection. Notify DOL of any changes to initiate computer-programming updates for proper fee collection. 9. RESPONSIBILITIES OF DOL DOL shall: a. Not impose the fee for vehicles as defined by law as "Not Subject"to the fee by statute and are listed in Attachment D, Vehicles Not Subject to Fee. b. Use data from the DOL File as the primary source for identification when assessing the fee for a vehicle registered within a TBD area. If the Location Code is one of the TBD areas, then DOL will apply the charge to the vehicle record. If a match cannot be found within the data from the DOL File, then the customer will not be billed the fee. DOL will not use any other data source to determine TBD fee liability. c. Administer and collect the appropriate annual vehicle fees of up to $20.00 per vehicle, at the time of registration renewal, pursuant to RCW 82.80.140. d. Not be responsible for the issuance of any refunds or shortages of the fee collected on behalf of TBD for boundary disputes when a customer claims they do not live in a TBD's area. e. Not be responsible or liable for any incorrect or omitted notices sent because TBD provided information to DOL in error. f. Not make corrections or issue replacement paper or electronic renewal notices. Not be obligated to recover actual or perceived revenue loss of the fee due to errors from data provided to DOL for boundary discrepancies. g. Not be responsible for inquiries and/or disputes of customers regarding the fees imposed by the TBD, except to direct the customer to the contact information provided to DOL by the TBD. h. Provide customers with information on the DOL webpage, which includes contact information for TBD. i. Provide vehicle licensing office and DOL staff with information to explain the TBD fee, which includes a list of TBD contact information. j. Not be responsible for the timeliness of the State Treasurer's monthly distribution of funds. ****REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK***** Attachment B, Statement of Work Page 6 of 8 DocuSign Envelope ID: C5995D72-4A10-418E-8764-557B2EC5A559 Revised 12-10-2015 ATTACHMENT C VEHICLES SUBJECT TO FEE The annual vehicle fee is due for each vehicle subject to license tab fees and for each vehicle subject to gross weight fees with an unladen (scale)weight of 6,000 pounds or less as described in table below. Vehicles registered with Disabled American Veteran Exemption would be exempt from the tax. The annual vehicle licensing fee applies only when renewing a vehicle registration, and is effective upon the registration renewal date as provided by the Department of Licensing. The following vehicles are subject to the vehicle licensing fee under RCW 82.80.140: Use Class Description What makes it Subject... CAB Taxicab 46.17.350 CMB (powered) Combination 46.17.355, if scale weight is 6000 pounds or less COM (powered) Commercial vehicle 46.17.350, if scale weight is 6000 pounds or less CYC Motorcycle 46.17.350 FIX Fixed Load vehicle 46.17.355, if scale weight is 6000 pounds or less F/H, 6 seats or less For Hire 46.17.350 F/H, 7 seats or more For Hire 46.17.355, if scale weight is 6000 pounds or less H/D House Moving Dolly 46.17.350 LOG(powered) Used Exclusively for hauling 46.17.355, if scale weight is 6000 logs pounds or less MH Motor home 46.17.350 MOB Mobile Home 46.17.350 (if actually licensed) PAS Passenger vehicle 46.17.350 STA, 6 seats or less Stage 46.17.350 STA, 7 seats or more Stage 46.17.355, if scale weight is 6000 pounds or less TLR Private—use trailer(if over 2000 46.17.350 pounds scale weight) TOW Tow truck 46.17.350 TRK Truck 46.17.355, if scale weight is 6000 pounds or less TVL Travel trailer 46.17.350 NEP Neighborhood electric 46.17.350 passenger vehicle NET Neighborhood electric truck 46.17.355, if scale weight is 6000 pounds or less MEP Medium-speed electric 46.17.350 passenger vehicle MET Medium-speed electric truck 46.17.355, if scale weight is 6000 pounds or less Attachment C, Vehicles Subject To Fee Page 7 of 8 DocuSign Envelope ID: C5995D72-4A10-418E-8764-557B2EC5A559 Revised 12-10-2015 ATTACHMENT D VEHICLES NOT SUBJECT TO FEE The following vehicles are specifically exempted from the vehicle licensing fee: a. Campers, as defined in RCW 46.04.085; b. Farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181; c. Mopeds, as defined in RCW 46.04.304; d. Off-road and non highway vehicles as defined in RCW 46.04.365; e. Private use single-axle trailer, as defined in RCW 46.04.422; f. Snowmobiles as defined in RCW 46.04.546; and g. Vehicles registered under chapter 46.87 RCW and the international registration plan. The following vehicles are not subject to the vehicle fee under RCW 82.80.140: Use Class Description What makes it Subject... ATV Motorized Non highway vehicle Not subject to 82.80.140 C/G Converter Gear Not subject to license fees CMB non powered Trailers Not subject to license fees CMP Campers Exempt under 82.80.140 COM non powered Commercial Exempt under 82.80.140 EX State, County, City, Indian Not subject to license fees FAR Farm Exempt under 82.80.140 FCB Farm Combination Exempt under 82.80.140 FED Federally Owned Not subject to license fees FEX Farm Exempt Not subject to license fees H/C (i.e., Antique vehicle) Horseless Carriage(see specific use Not subject to license fees class for vehicle type) LOG (non powered) Used exclusively for hauling logs Exempt under 82.80.140 ORV Off Road Vehicles Exempt under 82.80.140 PED Moped Exempt under 82.80.140 RES Restored and Collector Vehicles Not subject to license fees SCH Private School Not subject to license fees SNO Snowmobiles Exempt under 82.80.140 SNX State, County, City owned snowmobiles Exempt under 82.80.140 TLR Personal use trailers, single axle (less Exempt under 82.80.140 than 2,000 pounds scale weight) Attachment D, Vehicles Not Subject To Fee Page 8 of 8 DocuSign Envelope ID: 5ADEF22B-E5E6-4D18-829A-B64CCB91DDC8 WASHINGTON STATE DEPARTMENT OF �• LICENSING Amendment Purpose CONTRACT AMENDMENT BETWEEN THE DEPARTMENT OF LICENSING AND Yakima Transportation District DOL Contract No. K6376 Amendment - 01 To extend the period of performance. Contractor: Yakima Transportation District Contract Manager Jennifer Ferrer -Santa Ines (Area code) Telephone Email Jen nifer.Ferrer@yakimawa.gov Department of Licensing (DOL) Contract manager Jill McKinlay (Area code) Telephone Amendment Agreement: Department administration Programs & Services, Contracts & Initiatives Program Email jmckinlay@dol.wa.gov Based on mutual consideration herein, the parties hereby agree to modify the agreement as follows: Section 3: Period of Performance is extended through May 1, 2025. The effective date of this amendment is upon execution by both parties. All other terms and conditions of the original Contract and any subsequent amendments thereto remain in full force and effect. Contractor signature ��—DocuSigned by: rolge 'E R"aVY1S0k, `PFt�f5 tatiliAUtor name Robert Harrison Title City Manager Date 6/6/2022 CITY CONTRACT NO:f201Si1/411164/1 D r ©n -ifs RESOLUTION NO: Email bob.harrison( vaklmawa.gov DOL signature •DocuSigned by: N of T1E�C.LA2it}S Evelyne Lloyd Title Assistant Director Administrative Services Division Date 6/6/2022