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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. 12 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.