HomeMy WebLinkAbout09/26/2017 02 State Legislative ReviewITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDASTATEMENT
Item No. 2.
For Meeting of: September 26, 2017
State Legislative Review
Randy Beehler, Communications & Public Affairs Director
SUMMARY EXPLANATION:
The City's contract lobbyists in Olympia, Jim Justin and Jennifer Ziegler, will review the 2017
session of the Washington State Legislature, preview the 2018 legislative session, and discuss
the Association of Washington Cities draft 2018 State Legislative Priorities. Yakima County's
draft 2018 State Legislative Priorities will also be reviewed. The City's current State Legislative
& Administrative Priorities will be reviewed and any necessary adjustments will be made to the
priorities. Additionally, the current contract with Jim Justin Government Relations Consulting, Inc.
will be discussed.
ITEM BUDGETED:
STRATEGIC PRIORITY:
APPROVED FOR
SUBMITTAL:
STAFF RECOMMENDATION:
N/A
BOARD/COMMITTEE RECOMMENDATION:
N/A
ATTACHMENTS:
Description Upload Date
D AWC City Priorities Outcomes - 2017 9/19/2017
D Draft AWC 2018 Legislative Priorities 9./19/2017
NA
NA
City Manager
Type
Cover Memo
Cover Memo
ASSOCIATION
OF WASHINGTON
CiiiES
Legislative Session
City Prioritie. DutLomes
arPublic Records
Modernize the Public Records Act (PRA) so
that cities can continue to provide open and
transparent government services to our residents
Pro - Legislature passed HB 1595 which amends the PRA
to allow cities to charge a small fee for providing copies of
electronic records, creates the ability to deny overwhelming
computer generated "bot" requests, prohibits overly -broad
requests for all records, and creates a way to apply a service
charge to exceptionally complex requests.
• �., - Legislature passed HB 1594 which updates training
requirements for records officers, creates a grant program to
improve their public record management systems, establishes
a program to consult on public records best practices, and
updates the process for asking a requestor to clarify a request.
The bill also requires some new data collection processes.
itHomelessness, Housing &
Human Services
Enhance efforts to increase affordable housing, decrease
homelessness, and improve a strained behavioral health
system
Pr.. - The document recording fee was extended for four
additional years, which is the single biggest source of state
and local resources. New authority to use REET dollars for
homeless housing was created for two years.
- Funding was maintained for the Housing and Essential
Needs (HEN) program, funding for implementation of the Sec.
1115 Medicaid waiver, and TANF funding.
Con - There was no increase in the document recording fee
and only limited new tools.
Con - The Legislature's failure to adopt a capital budget
postpones planned critical investments in mental health
facilities around the state.
City -State Partnership
4111, Maintaii. critical fu.iding of key services
and programs
Pro - State operating budget fully funded traditional state
shared revenues at $210 million for 2017-19, including liquor
and municipal criminal justice funds.
Pro - Passed EHB 2163 implementing state Marketplace
Fairness Act sales tax collection or customer reporting for use
tax by out of state internet retailers, effective January 1, 2018,
increasing city sales tax revenues by $40.9 million for 2017-19.
- The budget provided necessary funding to the Criminal
Justice Training Commission (CJTC) to meet the immediate
training needs for the Basic Law Enforcement Academy (BLEA).
However, the budget only provided for 16 classes per year
when the likely need is for 18 classes in order to meet the
expected demand for training new officers.
- The Legislature fully funded its commitment to the
LEOFF 2 pension system. An earlier proposal would have
shifted $70 million of the state's commitment to cities.
- The final budget provided additional funding for cities
from the Office of Public Defense competitive grant program.
- Fully funded Municipal Research Services Center (MRSC).
Con - EHB 2163 phases out Streamlined Sales Tax (SST)
mitigation for cities and counties by October 1, 2019.
Con - The final budget for 2017-19 reneged on the agreement
from 2015 by reducing the amount of marijuana mitigation
revenue sharing from $15 million per year to $6 million per
year. However, there is a caveat that the money may be
restored if the February 2018 revenue forecast meets a certain
threshold.
Con - Did not pass SHB 1113/SB 5240 to restore growth in
the local government share of liquor revenues.
more outcomes on back
Contact:
Dave Williams
Director of Government Relations
davew@awcnet.org • 360.753.4137
Association of Washington Cities • 1076 Franklin St SE, Olympia, WA 98501 • 1.800.562.8981 • awcnet.org 0811
i
04%0 Local Authority
Respect city local authority to respond
to local needs
Pro - EHB 2005 passed requiring all cities to join the state
Business Licensing Service (BLS) by 2022 or FileLocal by
2020 to administer business licenses, but protected local
authority to impose rates and enforce regulations. Established
workgroups on a business license threshold and local B&O tax
service income apportionment.
Pro - Successfully defended against proposals to limit cities'
authority to regulate and zone marijuana businesses.
Con - Did not pass HB 1764 replacing the one percent
property tax revenue limit with a limit tied to population
growth and inflation.
Local Infrastructure
Revitalize key infrastructure assistance programs
that support job creation, community health and
safety, and quality of life
- If the Legislature can resolve other disputes and pass a
capital budget, legislators are poised to fund a Public Works
Trust Fund (PWTF) loan list for the first time since the 2011-
13 budget. They did show their support for continuing the
program with the passage of HB 1677, the PWTF reform bill.
Con - The diversion of tax revenues that would go into the
Public Works Trust Fund was extended for another four years.
The cash in the account was swept into the education budget,
and partially replaced with bond funds (if they pass a capital
budget) undermining the structure of this revolving loan fund.
Contact:
Dave Williams
Director of Government Relations
davew@awcnet.org • 360.753.4137
Association of Washington Cities • 1076 Franklin St SE, Olympia, WA 98501 • 1.800.562.8981 • awcnet.org 0811
4
ATTACHMENT 1
Legislative Priorities Committee Meeting
September 18, 2017
What we need from you:
Recommendations to the AWC Board on 2018 priorities. The Board will consider and adopt priorities on
September 29, 2017.
Background:
• July 27 Legislative Priorities Committee meeting took place to offer ideas and consider potential
2018 priorities. During that meeting survey results were discussed (see below for detail).
• Input was also sought from other city stakeholders, including the Large City Advisory
Committee. Committee members and stakeholders were asked to identify whether each was a
suggestion for either (1) a potential 2018 Priority, (2) unresolved issues from 2017, (3) worthy of
further consider and placement in a "parking lot", and (4) something to consider and begin
exploring for the 2019 session or beyond.
Survey results:
4 broad response themes:
1. Infrastructure funding —Funding basic water and sewer infrastructure, and transportation.
Concerns covered both capital and ongoing maintenance, and pressures from regulatory
mandates.
2. Fiscal stability —Concern around having enough revenue to meet community needs. Relief from
the 1% property tax. Concern about ongoing viability of state -shared revenues. Concerns about
inflationary pressures on cost drivers like personnel and other maintenance and operations
costs.
3. Growth pressures — Pressures resulting from growth that are driving costs for infrastructure and
basic services like public safety. Concerns around impacts of growth on community dynamics
and character.
4. Housing and human service needs — Responses clearly indicated that communities are
continuing to struggle with affordable housing and homelessness. Concerns around a lack of
available human services resources, including mental health services and efforts to address the
opioid crisis and how they affect public safety resources. Feedback around how cities are taking
on more of what has historically been regional and state responsibilities for human services.
Discussion yielded the following:
w The Committee identified 14 potential 2018 priorities
• 14 issues were identified as "holdover" from the 2017 session - 4 of them also on the list of
potential priorities.
• 4 more items were deemed important to consider and work on in advance of the 2019 session
and beyond
5
• An addtiona 22 items were identified and placed in a "parking lot"list for further
discussion/consideration
What has AWC prepared for your consideration?
1. Updated Issues Chart and Issue Briefs
a. Briefs (Iinked on ATTACHMENT 2) each describe an issue's background, political
landscape, discussion items to consider and staff's recommendation on how and when
best to address it. Note: Atachment 2 includes a 5mco|unnn entitled "Issues that may
neceiveapushfrnnnotherintenootsin2O1O"'Overdme,odd|tiona|itemsare|ike|ytn
appear here.
2. Brief summaries of each Issue
a. ATTACHMENT 3 is a very brief summary of each issue. For those with Issue Brief
backgrounders, the summary also contains staffs position recommendation.
3. Strategic Considerations when recommending 2018 Priorities
a. The 2017 session produced several "wins" for cities, yet several priorities remain
unresolved. Although state -shared revenues were by and large retained, there are no
guarantees this will remain the case in the future. No Capital Budget has yet been
adopted and many cities (and other interests) want this to happen as quickly as
possible.
b. The upcoming 2018 session is only 60 days and there isn't likely much time for major
new initiatives to be considered. There may or may not be the need for a supplemental
budget
c. The Senate may be controlled by the Democrats, but only by 1 vote.
d. We need to think strategically — both in the short-term and looking ahead to 2019 and
beyond.
i Our current Iist is long and needs to be shortened and focused.
ii We need to decide if our goals are to get some "wins", make some "points", lay
some "groundwork" or all ofthese?
AWC Staff Recommendations
• Focus on select 2017 "left over" issues as our 2018 Priorities, ones where we can work in broad
coahtons to achieve our goals _specifically:
1. Authorize more optional affordabie housing tools for local consideration
2.
Adopt a Capital Budget
3. increase funding for rriental health arid chemical dependency services to help
reHeve the crises in our cornrnunites
As part of our overall strategy, continue to promote why strong cities matter, defend current
authorities and guard against cuts to shared revenues.
• Begin work now to lay the groundwork for 2019 priorities. This includes, continued consultation
6
sessions, research and exploring in more detail the needs and preferences of our cities.
Examples might include:
1. Best options for increased Iocal transportation funding — Street Utility? Broader TBD
authorities? VMT strategies?
2. Non -transportation infrastructure needs —The Public Works Board study will take some
time/pay attention and engage.
3. New Climate Initiative — Engage with those putting it together and have input on how
revenues might be used, such as water infrastructure.
4. Tax Increment Financing (TIF) — What is possible and work on Champions and search for
allies?
S. LEOFF — Explore how to reinforce support for a continued state contribution
6. Public Records Act (PRA) Reforms Pt. 2 — If opportunities can be found for more reforms,
what are the ones most needed?
7. Culverts —Still a sleeper issue for many, but potentially a huge fiscal liability. What are
some ideas/who are our allies?
Attachment 2
Issue Category
Potential 2018 Priorities
Infrastructure Transportation eneflt Districts
Councilmanic sales tax TBD
Public Works Bid Limits
Stormwater
Sound Transit
Local Authority Small Cell Networks Rural rite n
Ideas Generated During the July 27 Legislative Priorities Committee Meeting
Preserve Local Rights of Way
lift the 1% Property Tax Can
Housing Costs and Foreclosed Homes
Availability
Revenue Support Captal Budget
State Shared Revenues and Local
AohnoriGew _ _
Mental Health and Chemical Dependency
Funding
Cost Drivers
Public Safety
Other Issues Assess Health Care Law Changes
Use Manufacturing Tax Veto to Reduce
Property Tax
2017 Unresolved Issues
Construction Contracts Clai
Process
Parking Lot
Corridor Planning
Small Cell Regulation
Pavement Management
-v-44444
-,,-----,.
Project Bid Price Escalation
Culverts
Planning Timelines Large Projects
Local Option Fatigue
Municipal Water Rights Tax Increment Financing
Sharing Economy/Local Authority
Affordable Housing Tools
Foreclosed Homes
-^^^
Basic Law Enforcement Acadern
Funding
Affordable Housing Tools
Tax Status of Affordable Housing
Local Variation in Development
Regulations and Fees
Pension Costs
Marquana Revenue Funding for GMA and SMP updates
Lodging Tax
Tourism Marketing
Police Use of Deadly Force.
Body Worn Cameras
Civil Asset Forfeiture
Personnel cost drivers
Mental Health Funding Across County
Lines
Law Enforcement Training Options
Expansion of Occupational Disease Paid Family Leave Questions
Presumptions
Legislative Budget Process
Questions/Concerns
Agency Rulemakinc 3verW,
More Idea/Best Practices Exchange
Ramp up Strong Cities Campaign
2019 and Beyond
Street Utility Authority
Issues that may receive a push
from other interests in 2018
Home Rule "Push"
SST Mitigation Study Results
More Public Records Reforms
Climate initiative and spending any
new revenues
Small cell networks
Concerns about exposure of shared
revenues if McCleary solution is
invalidated by the courts
Presumptive Illness legislation
Voting Rights Act
_Ls
City of Yakima
2017 - 2018
State Legislative and Administrative Priorities
8
Actively Pursue
- Passage of the Washington Voting Rights Act
- Efforts to address homelessness and to reduce barriers to affordable housing
and human services programs locally, regionally, and statewide
- Safe Routes to Schools funding
- Development of a sustainable funding model for gang prevention, intervention,
and suppression programs given current funding will expire in 2017
- Development of a sustainable funding model to assist in meeting increased
indigent defense costs given current funding will expire in 2017
- Ensuring cities have stable, sufficient, and flexible revenue options to utilize to
provide essential services
- Seeking funding from the Washington Department of Transportation
("WSDOT") Bicycle and Pedestrian grant program
- Funding partners to assist with Mill Site infrastructure and landfill cleanup
costs
Support
- Full funding of the Washington State Basic Law Enforcement Academy
- Strengthening access to public records by curbing abusive requests
- More equitable allocation of federal Fixing America's Surface Transportation ("FAST") Act
funding to local infrastructure projects
Monitor
- Efforts to amend the Open Public Meetings Act
- Efforts to require Washington State driver's licenses to be REAL ID compliant
City of Yakima
2017-2018
Federal Legislative and Administrative Priorities
Actively Pursue
- Efforts to address homelessness and to reduce barriers to affordable housing
and human services programs locally, regionally, and nationally
- Comprehensive immigration reform, including passage of the Bar Removal of
Individuals Who Dream of Growing Our Economy ("BRIDGE") Act
- Increased funding for Office of Juvenile Justice and Delinquency Prevention
("OJJDP") and other federal programs designed to combat gang crime and
violence
- Efforts by eligible local entities to secure funding through the U.S. Department of
Housing and Urban Development's "Choice Neighborhoods" program
Continued funding of the Community Development Block Grant ("CDBG")
program at current or increased levels
Funding partners to assist with North 1st Street project costs
Funding from the Transportation Infrastructure Finance and Innovation Act
("TIFIA") program and other available federal sources for critical local
transportation projects such as development of streets serving the Mill Site
project and the Yakima East-West Corridor project
- Support of efforts to secure Brownfields Assessment, Cleanup, and
Redevelopment grants
Support
- Ongoing funding assistance provided to local public safety entities through programs
such as Community Oriented Policing Services ("COPS"), Staffing for Adequate Fire
and Emergency Response ("SAFER"), and Local Law Enforcement Block Grants
("LLEBG")
- Yakima Basin Integrated Plan funding requests
- Development of pilot programs (with accompanying funding) to assist cities in the
creation of innovative solutions to combat crime and violence
- Development of adequate, predictable, and sustainable funding for airport capital
projects and airport economic development projects
- Efforts to normalize and make consistent regulations and taxing authority applicable to
providers of communication services regardless of delivery method (i.e. wireless,
satellite, cable, telephony, internet, etc.)
9
10
2018 County Priorities
Yakima County Legislative Agenda
2018 Legislative Session
Yakima County,recognizes that investing in economic development is the key to state and local
economic growth. We ask the legislature to support proposals positively affecting the
economic vitality of our region. The County's priorities for the 2018 legislative session are
below:
Pass a 17-19 Capital Budget that Funds Yakima Basin Integrated Water Resource_
Management Plan full funding of the plan. The pending Capital Budget — released on July 20th,
2017 — allocates $31.1 million to the integrated plan. Yakima County encourages the
legislature to pass a 17-19 Capital Budget that includes this funding. Additionally, Yakima
County supports any opportunity to advance the Wymer water storage project. (to be updated
in September when more information is available about Wymer)
Statewide Investment in Water Infrastructure
Yakima County supports efforts to dedicate additional revenue to water supply, flood
mitigation, storm water, and other water infrastructure needs. Statewide water infrastructure
needs significantly outpace available funding. Additional revenue needs to be identified to
support these important projects.
Authorizing a Health Sciences and Services Authority
Yakima County joins Pacific Northwest University, the City of Yakima, and other regional
partners in advancing legislation that authorizes the Yakima region to establish a Health
Sciences and Services Authority (HSSA). Currently, state law has authorized only one HSSA,
located in the Spokane region. Once established, the authority would be funded with a .02
sales tax credit to promote bioscience -based economic development and advance new
therapies and procedures to combat disease and promote public health.
Funding for US 12 Bridge Expansion Over Cowiche Creek
Placeholder — waiting for information from Vern, WSDOT, etc.
Indigent Defense
Access to a defense attorney in criminal matters is a basic constitutional right. Counties were
assigned by the Legislature the duty to provide adequate defense for indigent citizens; yet the
state funds Tess than five percent of what counties currently spend for these services. Yakima
County joins the Washington State Association of Counties (WSAC) in requesting that the state
fully fund the cost of indigent defense services - $260 million per biennium.
Floodplains by Design
Yakima County supports the Floodplains by Desiprogram, to the extent that it is
complementary and supplemental to the Yakima Basin Integrated Plan. The most recent
proposed 2017 Capital Budget released on7/2O/1J'includes $35.3million tothe F|oodplainsby
Design program — of which $5.78 million is dedicated to the Yakima County Public Services
Department for Nelson Dam.
General Government/Finance
State -Shared Revenues
¥akima County opposes any reduction in revenues traditionally shared between the state and
counties. Yakima County finds the SIED (.09 sales tax credit) funding for economic
development is particularly important. In addition, the County supports efforts to extend the
2023 sunset on this sales tax credit.
Yakima County supports efforts to restore funding that was previously reduced, such as
restoring liquor profit revenues to pre -2012 levels by removing the 2011 cap, and restoring the
50/50 revenue sharing relationship over multiple biennia and dedicate the revenue to public
safety.
Fully Fund DPW PILT
Yakima County joins other counties and the Washington Department of Fish and Wildlife in
supporting reform and increasing funding to the Payment in Lieu of Taxes (P|[7) program.
Since the Legislature froze PILT payments at 2009 levels, the program needs to be reformed
and funded to make counties whole.
Public Records Reform
The County supports ongoing efforts to reform the Public Records Act and intends to support
and monitor ongoing implementation of House Bills 1594 and 1595, which were passed into
Iaw during the 2017 Iegislative session. The County will continue to work jointly with the
Washington State Association of Counties (WSAC) on this issue.
Infrastructure Funding
East/West Corridor Project
Yakima County will continue to monitorthe implementation ofthe Connecting Washington
package to ensure that the East/West Corridor pject is delivered on-time ($9 million in 17-
19; $25.4 million in 19-21)
PWAA, CRAB, FMSIB, TIB
Yakima County supports fully funding key infrastructure grant programs, including the Public
Works Assistance Account, the County Road Administration Board, the Freight Mobility
Strategic Investment Board, and the Transportation Improvement Board.
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Local Infrastructure Financing Tool ("LIFT")
Local Revitalization Financing ("LRF")
Brief Summary
Several years ago, the City was granted up to $25 million in state sales tax credits under the
LIFT program, which was established by the legislature in 2006 and codified as RCW 39.102, to
be used to redevelop the former Boise Cascade mill site. Under LIFT, the City receives state
tax credits each year in an amount equal to the amount of local funds the City invests in the mill
site redevelopment project. The City is eligible to receive up to $1 million in state tax credits
each year for a period of 25 years. The City began receiving state tax credits under LIFT five
years ago.
LIFT's language limits the City's ability to make significant infrastructure improvements to the
mill site all at once because under LIFT, the City cannot "carry forward" its match of local funds
from one year to the next. In other words, even if the City invested
$15 million of local funds in one year in mill site redevelopment improvements, the state would
only match $1 million in state tax credits for that given year. As a result, the City would lack the
necessary revenue to retire a bond in the amount necessary to make significant mill site
improvements all at once.
LRF is quite similar to LIFT in its intent to assist local jurisdictions to make investments to spur
economic development. Unlike LIFT, LRF, which was created by the legislature in 2009 and
codified as RCW 39.104, does allow jurisdictions to "carry forward" a local funds match from
one year to the next.
The City intends to advocate that the legislature modify the LIFT language so that it resembles
the LRF language as it pertains to the ability to carry forward a local funds match from year to
year. Were that to occur, the City would be much better positioned to make significant
improvements to the mill site in a much shorter period of time while still being assured a
revenue stream to repay necessary bonds. The financial impact to the state would not change
— the state would still provide up to $1 million per year over 25 years.