SCA Board of Directors AGENDA September 19, :00 AM Tukwila City Hall Hazelnut Room 6200 Southcenter Blvd, Tukwila

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1 SCA Board of Directors AGENDA 10:00 AM Tukwila City Hall Hazelnut Room 6200 Southcenter Blvd, Tukwila 1) Call to Order Mayor Amy Walen, President 2) Public Comment 3) Consent Agenda a. Minutes of the July 18, 2018 Board of Directors Meeting Recommended Action: Approval of consent agenda President Walen Attachment 1 4) President s Report Amy Walen, President 5) Executive Director s Report Deanna Dawson, Executive Director 6) Treasurer s Report Dana Ralph, Treasurer Attachment 2 Attachment 3 a. b. c. d. e. f. g. Preview of DRAFT 2019 budget Financial reports Update on SCA Banking, Payroll Audit discussion and possible action Accrued leave payout possible action Financial policies County budget Attachment 4 7) SCA Bylaws and Board Policies Report Hank Margeson, Ed Prince, Catherine Stanford 8) SCA Legislative Committee Report Leanne Guier, Chair Attachment 5 9) PIC Chair s Report Ed Prince, PIC Chair Attachment 6 10) Discussion Items a. SCA staffing update Deanna Dawson, Executive Director Page 1 of 26

2 b. c. d. e. f. g. h. i. j. k. l. m. n. o. p. q. r. Report on meetings with King County Councilmembers Composition of PSRC Executive Board POSSIBLE ACTION: Appointment to vacant seat on PSRC Executive Board POSSIBLE ACTION: Appointment to vacant seat on King Conservation District Advisory Board Attachment 7 Discussion re other committee vacancies for 2018 (All Home, Alternates to PSRC Executive Board, RLSJC) Update on 2019 appointment process 2019 SCA Board seats King County Inquest Process Homelessness Affordable Housing Task Force King County Charter Review Commission SCA Sponsorships update Upcoming Events with SCA Partners and Others: o October 10, 2018 Event with Partner Comcast re Bridging the Digital Divide o October 17-19, 2018 Chamber Regional Leadership Conference o October 24, 2018 Master Builders Housing Solutions Breakfast o December 14, 2018, Advancing Racial Equity Conference Debrief on Cybersecurity Forum, September Networking Event 2018 SCA Annual Meeting 2018 accomplishments Retreat update Attachment 8 11) Upcoming Events a. PIC Meeting Wednesday, October 10, :00 PM 9:00 PM (Pre-PIC workshop 6:00 PM) Renton City Hall b. SCA Board of Directors Meeting Wednesday, October 17, :00 AM 12:00 PM Tukwila City Hall c. SCA Annual Meeting Wednesday, December 5, :30 PM 8:00 PM location TBD 12) For the good of the order 13) Adjourn Page 2 of 26

3 SCA Board of Directors DRAFT Minutes July 18, :00 AM Tukwila City Hall Hazelnut Room 6200 Southcenter Blvd, Tukwila Members present: Amy Walen, Nancy Backus, Dana Ralph, Jeff Wagner, Debbie Tarry, Hank Margeson, Ed Prince, Amy Ockerlander Members not present: David Baker, Leanne Guier, Catherine Stanford, Bruce Bassett Staff Present: Deanna Dawson, Caitlin Magee 1) Call to Order President Walen called the meeting to order at 10:00 AM. 2) Public Comment President Walen asked if any member of the public had comment. Hearing none this portion of the agenda was closed. 3) Consent Agenda Hank Margeson, Redmond, moved, seconded by Jeff Wagner to approve the June 20, 2018 Board of Directors meeting minutes. There was no discussion. The motion passed unanimously. 4) President s Report President Walen did not give a report. 5) Executive Director s Report Executive Director Deanna Dawson gave a report. Director Dawson informed the Board that SCA Senior Policy Analyst Ellie Wilson-Jones will be leaving SCA for another job opportunity. SCA will be recruiting to fill this position and is hoping to have temporary staffing until this position is filled. There will be a vacation payout from the employment reserve for unused accrued vacation leave. Director Dawson reported that there was an additional section in the Personnel Policies discussed the need to update the SCA Personnel Policies. This was a technical amendment to have consistency between the sections that were previously updated. Hank Margeson, Redmond, moved, seconded by Jeff Wagner to approve updates to the SCA Personnel Policies. There was no discussion. The motion passed. Director Dawson met with the City of Tukwila to discuss renewal of the SCA office lease, which will be renewed for 2019 and beyond. Att 1: Draft Minutes Page 3 of 26

4 Director Dawson reported that the Board of Directors has typically chosen to not hold a meeting in August. Nancy Backus, Auburn, moved, seconded by Dana Ralph, Kent, to cancel the August meeting of the Board of Directors. There was no discussion. The motion passed. Director Dawson discussed partner level members and sponsors of SCA events, including the SCA Partner Forum on Cybersecurity for Cities sponsored by CenturyLink being held on August 1, 2018 at the Mercer Island Community Center. Dawson reported that Comcast is interested in increasing their membership to the partner level. Comcast is hosting an event in October to discuss how to address the digital divide in communities and would like for SCA to be involved. Board members discussed and agreed that they are in support of this event and willing to participate. Comcast has also asked SCA to sign on to a letter to low income households in King County regarding access to Comcast s internet essentials program. Board members reviewed past examples of the Comcast letter and agreed that they would like to sign on to it. Hank Margeson, Redmond, moved, seconded by Ed Prince, Renton, to authorize signature of the Comcast letter. There was no discussion. The motion passed. Director Dawson reported that SCA is working with Master Builders Association of King & Snohomish Counties on an event. Dawson reported that David Baker, Kenmore, is working with the Taipei Economic and Cultural Office in Seattle on potential partner level membership with SCA. Director Dawson reviewed the timing of end of year meetings. The November Board meeting is currently scheduled the day before the Thanksgiving Holiday. Dawson and Walen proposed that the Board not hold a meeting in November, but hold a meeting on December 19, primarily for Regional Board and Committee appointments. The Board discussed holding board elections and caucus meetings in conjunction with a PIC meeting, to avoid multiple evening meetings for members in December. The Board discussed changing the date of the Annual Meeting to December 5, so that President Walen could attend. Mayor Jeff Wagner, Covington, left the meeting at 10:40 AM. Dana Ralph, Kent, moved, seconded by Nancy Backus, Auburn, to cancel the November Board of Directors meeting, and to meet as scheduled in December. There was no discussion. The motion passed. The Board agreed that the Annual Meeting should be held on December 5, Director Dawson noted that the Board will be asked to approve the 2019 budget at the meeting in October. Membership dues will be presented for approval at the Annual Meeting. Director Dawson asked which board members were interested in serving in leadership roles for Mayor Leanne Guier, Pacific, is interested in running for President as she is currently serving as Vice President. Mayor Dana Ralph, Kent, is interested in running for Vice President as she is currently serving as Treasurer. Councilmember Hank Margeson, Redmond, is potentially interested in running for Treasurer. City Manager Debbie Tarry, Shoreline, will be leaving the SCA Board at the end of If the PIC decides to have the PIC Chair serve a second term, then Council President Ed Prince, Renton, will remain on the Board for Dawson asked for volunteers to serve on the Board Nominating Committee. Mayor Jim Ferrell, Federal Way, and Council President Ed Prince, Renton, volunteered to serve on the Board Nominating Committee. President Walen appointed herself, David Baker, Jim Ferrell and Ed Prince to the Board Nominating Committee. Att 1: Draft Minutes Page 4 of 26

5 6) Treasurer s Report Treasurer Dana Ralph and Director Dawson reported on the current SCA finances. A financial report was not provided as the new bookkeeper is working through correcting errors made by the previous payroll processing company and issues that occurred during the migration to QuickBooks online. There have not been any new major expenditures. Director Dawson reported that the Finance Committee decided to follow the current policy for calculating annual membership dues and recommended sending estimated assessments directly to member cities for budget preparations. Board members discussed and agreed with sending estimated assessments directly to member cities. Treasurer Ralph informed the Board that the CPI-W for June June for Seattle Tacoma Bremerton was 3.6%. Per SCA Board policy, increases shall be capped at 3%. Dana Ralph, Kent, moved, seconded by Nancy Backus, Auburn, to have 2019 annual membership dues adjusted by 3% and population growth calculated using current official populations determined by the Office of Financial Management. There was no discussion. The motion passed. Treasurer Ralph reported that Dwight Dively, King County, gave a presentation on the King County Budget at the Finance Committee meeting. Director Dawson gave an update on the transition of payroll processing vendors. Director Dawson reported that the Finance Committee is reviewing the current financial policies for any updates that need to be made. The reserve policies were reviewed and updated earlier in the year. The Finance Committee is not making any recommendations for updates to the current membership dues policies. The Finance Committee is considering revisions to the investment policies. Recommendations for updates will be brought to the Board for consideration at a future meeting. 7) SCA Bylaws and Board Policies Report Director Dawson reported that the SCA Bylaws and Board Policies Committee cancelled their meeting and no report was given. 8) City Manager/Administrator Report City Manager Debbie Tarry, Shoreline, gave a report on the July meeting of the City Managers & Administrators. Tarry reported that Candice Bock is the new Government Relations Manager at the Association of Washington Cities. Director Dawson mentioned that AWC is doing a strategic planning project and SCA may want to consider doing a similar project. Tarry reported that the City of Sammamish is undergoing changes in their City Manager position. The SCA Partner Forum on cybersecurity was discussed at the meeting. 9) PIC Chair s Report PIC Chair Ed Prince, Renton, gave a report on the July Public Issues Committee meeting. Prince reported that PIC voted to recommend appointing Redmond Council President Angela Birney to the vacant member seat on the Regional Policy Committee and appointing Bothell Councilmember James McNeal to the alternate seat. Att 1: Draft Minutes Page 5 of 26

6 Ed Price, Renton, moved, seconded by Hank Margeson, Redmond, to appoint Redmond Council President Angela Birney to the Member seat and to appoint Bothell Councilmember James McNeal to the Alternate seat on the Regional Policy Committee (RPC). There was no discussion. The motion passed unanimously. The PIC Nominating Committee noted that that 4Culture Task Force was a staff committee and therefore did not forward a recommendation to the PIC for recommendation. Dana Ralph, Kent, discussed the qualifications of Ronda Billerbeck from the City of Kent. SCA staff Caitlin Magee read the qualifications of Lawrence Ellis from the City of SeaTac. Hank Margeson, Redmond, moved, seconded by Dana Ralph, Kent, to appoint Ronda Billerbeck, Kent, to the Member seat and to appoint Lawrence Ellis, SeaTac, to the Alternate seat on the 4Culture Task Force. There was no discussion. The motion passed unanimously. Chair Prince reported that SCA Senior Policy Analyst Brian Parry updated the PIC on the Affordable Housing Task Force. Director Dawson noted that there has been discussion on whether people want to go out and ask for additional funding now or if there should be additional work done. Nancy Backus, Auburn, commented that the citizens should not be asked for more money and that we need to look at what is currently being done and it is being done effectively. The Board concurred. Director Dawson stated that this feedback would be shared with David Baker who is the Chair of the Affordable Housing Task Force. Chair Prince reported that there was a report given on the Responsible Recycling Task Force. Director Dawson reported that this task force is looking at things in the wake of China s National Sword policy and what things should be made common county wide. Director Dawson stated that we are looking for feedback on whether the county should be setting county wide policy on how rate fluctuations get handled or if it should be handled city by city, should there be a county wide list of items that can be recycled or should each city sort that issue out with the haulers. Feedback given by Sammamish Mayor Christie Malchow at the PIC meeting was that the county should focus on getting out the message educating people on recycling clean and dry items and let cities focus on the details. Chair Prince reported that the Homelessness Update given at the PIC meeting included discussion on One Table. Director Dawson provided a handout and gave an update on the workgroup that is being put together on the governance of homelessness in the region. 10) Discussion Items Director Dawson provided a handout from Dana Ralph, Kent, on the King County Inquest Process and proposed changes. The Board discussed the proposal and agreed to meet with their Police Chiefs to determine what steps should be taken by cities. Dana Ralph noted that there is a meeting set for August 9, 2018 between Executive Dow Constantine and the Police Chiefs. Mayor Jim Ferrell, Federal Way, left the meeting at 11:43 AM. Director Dawson reported that Kirkland Councilmember Toby Nixon and Maple Valley Mayor Sean Kelly are on the Charter Review Committee. Dawson asked the board for feedback on changes they would like to see in the charter. Director Dawson reported that she is working on setting up meetings with the SCA Board members and King County Councilmembers. Att 1: Draft Minutes Page 6 of 26

7 Director Dawson noted that the Legislative Committee was established at the June Board meeting. The person that has been staffing legislative items was Senior Policy Analyst Ellie Wilson-Jones. Director Dawson noted that if there are major legislative items to tackle we will want to consider retaining outside assistance. Amy Ockerlander, Duvall, suggested that cities may not have the capacity to take on major items to support and it might be good for SCA to just select a few priorities to focus on. Nancy Backus, Auburn, commented that priorities will likely be similar to those in recent years. Director Dawson said that SCA will review city legislative agendas for commonalities. Director Dawson gave an update on the Greater Seattle Partners group. Nancy Backus serves on the board of this group and they have also put together a mid-level leadership board. Director Dawson reported that SCA helped negotiate for Sound Side Alliance to have a seat on this board. Director Dawson asked board members to provide feedback on other groups SCA should be advocating for to have a seat. Dawson noted that it is a good accomplishment that Comcast has reached out wanting to partner with SCA and being asked to sign on to the Comcast letter. President Walen noted that that SCA Partner Forums are a great accomplishment and setting meetings with the SCA Board and King County Councilmembers. Hank Margeson noted that obtaining an alternate seat on the 4Culture Task Force is an accomplishment. 11) Upcoming Events a. SCA Partner Forum Cybersecurity for Cities Wednesday, August 1, :30 PM 6:00 PM Mercer Island Community Center b. SCA Networking Dinner Wednesday, September 5, :30 PM 8:00 PM Bellevue 12) For the good of the order President Walen asked if anyone had anything to add for the good of the order. 13) Adjourn President Walen adjourned the meeting at 12:10 PM. Att 1: Draft Minutes Page 7 of 26

8 SCA Finance Committee DRAFT Minutes September 10, 2018, 1:00 PM SCA Offices, Conference Room, 6300 Southcenter Blvd #206, Tukwila WA Via conference call - Dial-in Number: (712) , Meeting ID: # 1. Treasurer Dana Ralph called the meeting to order at 1:02 PM. Present in person were Hank Margeson, Leanne Guier, and Dana Ralph, and staff Deanna Dawson. Present on the phone were Nancy Backus and Tracey Dunlap (until 2 PM), and Dwight Dively, Director of King County Office of Performance, Strategy and Budget. 2. Treasurer Ralph asked if any member of the public cared to provide comment. Seeing none, she closed this portion of the agenda. 3. Dwight Dively gave a presentation on the 2019/2020 King County budget (handout). That presentation concluded at 1:33 PM, at which time Dively left the meeting. 4. Margeson moved, seconded by Guier, to approve the minutes of the July 9, 2018 meeting. The motion passed unanimously. 5. The Committee reviewed the SCA profit and loss statements. Dawson highlighted areas needing further refinement/work. The Committee noted the need for a full and complete financial report to be prepared in advance of the next Finance Committee meeting. Dawson agreed to work with staff to prepare the reports. 6. Dawson updated the Committee on conversations with the SCA audit team at Paulsen Meegard, who suggested that it may make sense to complete an audit in 2019 for 2018, given how late it is in the year. The Committee discussed the pros and cons, and whether to conduct a compilation or review in 2018 instead. The Committee agreed to recommend to the Board that the audit be postponed to 2019, and asked Dawson to get more information on the cost difference between a compilation versus a review. 7. The Committee reviewed the payout to a departing employee for accrued leave. Margeson moved, seconded by Guier, to transfer $10, from the employment reserve fund to cover the expense. The motion passed unanimously. Att 2: Draft Finance Committee Minutes Page 8 of 26

9 8. Dawson gave an update on working with the new bookkeeping service, and that it has been a positive experience to date. The Committee reiterated the need to have a high level written agreement with the bookkeeping service, and asked that staff complete this work in advance of the next Finance Committee meeting. 9. The Committee also asked that staff complete the work on consolidating the SCA bank accounts in advance of the next SCA Finance Committee meeting. 10. Dawson reviewed an initial draft of the 2019 SCA budget with the Committee. The Committee agreed that the budget was on the right track. Dawson will finalize the budget after hiring the new SCA policy analyst. The Finance Committee will review and approve the 2019 budget and make a recommendation to the Board in October. 11. The Committee discussed the review process of the SCA Board Policies and Bylaws. They acknowledged that this work could not be completed in advance of the October Board meeting, and therefore would not be ready for adoption at the 2018 SCA Annual Meeting. The work will continue, and be completed in Dawson noted that Ann Macfarlane had agreed to review and make recommendations on the Bylaws. 12. The next meeting of the SCA Finance Committee will be October 8, 2018 at 1 PM. The 2019 budget will be acted upon at that meeting. 13. Treasurer Ralph asked if members had additional items for the good of the order. The Committee briefly discussed the SCA Legislative Agenda, as it relates to the King County budget. 14. The meeting adjourned at 2:45 PM. Att 2: Draft Finance Committee Minutes Page 9 of 26

10 2019 DRAFT Income: City Membership Dues: $ 689,587 NEW Regional Associate Membership Dues & Event Sponsorships: $ 63,000 NEW Event Registration Fees: $30,000 NEW Interest Income: $ 2, Total Income: $ 785,487 Expenses: Staff: $ 677,246 Salaries: $ 508,950 Taxes: $ 40,929 SUTA + FUTA $ 517 FICA/Medicare $ 39,394 L & I: $ 1,018 Staff Benefits: $ 127,367 PERS Contributions: 64, Medical/Dental/Vision/Life Insurance: $ 46,730 Professional Development: $ 4,000 Travel Reimbursement/Car Allowance: $ 12,000 Office/Overhead: $ 52,454 Rent: $ 26,000 Office Insurance: $ 604 Printing/Publications: $ 5,500 Copier/Printer Lease & Maintenance: $ 5,000 Outside Printing/Publications: $ 500 IT: $ 6,200 Internet: $ 1,200 Website Design/Hosting: $ 2,500 IT Staff Support: $ 2,000 IT Equipment: $ 500 Phones: $ 4,000 Credit Card, Banking, and Other Fees: $ 150 Accounting & Payroll Processing Fees: $ 6,000 Legal: $ 1,500 Office Supplies/Miscellaneous: $ 2,500 Event Expenses: $ 24,300 Food/Beverages: $ 22,000 Event Payment Processing Fees: $ 1,200 Other Meeting Expenses: $ 1,100 Board/Organizational Development: $ 21,274 Directors & Officers Insurance: $ 1,774 Awards/Recognition: $ 2,000 Retreats/Meetings/Conferences/Dues/Events: $ 10,000 Consultants & Temporary Staff: $ 7,500 Contingency Fund: $ 10,000 Total Expenses: $ 785,274 Total Income: $ 785,487 Total Expense: $ 785,274 $ 213 Att 3: Draft 2019 Budget Page 10 of 26

11 What Is the Difference Between a Compilation, a Review and an Audit? Comparative Overview The level of service is determined by your needs as the client, and what your creditors and/or investors require. The higher the level of service required, the more time the CPA needs to complete the engagement and therefore the more costly the engagement. While privately held companies opt for compiled or reviewed statements, credit agreements with lenders often require audited statements. Compilation Compiled financial statements represent the most basic level of service CPAs provide with respect to financial statements. In a compilation engagement, the accountant assists management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. In a compilation, the CPA must comply with Statements on Standards for Accounting and Review Services (SSARSs), which require the accountant to have an understanding of the industry in which the client operates, obtain knowledge about the client, and read the financial statements and consider whether such financial statements appear appropriate in form and free from obvious material errors. A compilation does not contemplate performing inquiry, analytical procedures, or other procedures ordinarily performed in a review; or obtaining an understanding of the entity s internal control; assessing fraud risk; or testing of accounting records; or other procedures ordinarily performed in an audit. The CPA issues a report stating the compilation was performed in accordance with Statements on Standards for Accounting and Review Services; and that the accountant has not audited or reviewed the financial statements and accordingly does not express an opinion or provide any assurance about whether the financial statements are in accordance with the applicable financial reporting framework. Review Reviewed financial statements provide the user with comfort that, based on the accountant s review, the accountant is not aware of any material modifications that should be made to the financial statements for the statements to be in conformity with the applicable financial reporting framework. A review engagement involves the CPA performing procedures (primarily analytical procedures and inquiries) that will provide a reasonable basis for obtaining limited assurance that there are no material modifications that should be made to the financial statements for them to be in conformity with the applicable financial reporting framework. In a review, the CPA designs and performs analytical procedures, inquiries and other procedures, as appropriate, based on the accountant s understanding of the industry, knowledge of the client, and awareness of the risk that he or she may unknowingly fail to modify the accountant s review report on financial statements that are materially misstated. A review does not contemplate obtaining an understanding of the entity s internal control; assessing fraud risk; testing accounting records; or other procedures ordinarily performed in an audit. The CPA issues a report stating the review was performed in accordance with Statements on Standards for Accounting and Review Services; that management is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework and for designing, implementing and maintaining internal control relevant to the preparation Att 4: Compilation vs. Review vs. Audit Page 11 of 26

12 Compilation vs. Review vs. Audit Comparative Snapshot Compilation Review Audit Level of Assurance Obtained by the Accountant/Auditor that the Financial Statements Are Not Materially Misstated Accountant does not obtain or provide any assurance that there are no material modifications that should be made to the financial statements Accountant obtains limited assurance that there are no material modifications that should be made to the financial statements The auditor obtains a high, but not absolute, level of assurance about whether the financial statements are free of material misstatement Objective To assist management in presenting financial information in the form of financial statements without undertaking to provide any assurance that there are no material modifications that should be made to the financial statements To obtain limited assurance that there are no material modifications that should be made to the financial statements To obtain a high level of assurance about whether the financial statements as a whole are free of material misstatement thereby enabling the auditor to express an opinion on whether the financial statements are presented fairly, in all material respects Assurance Provided to the User of the Financial Statements The accountant is required to obtain an understanding of the entity s internal control and assess fraud risk None the report states that no assurance is provided None the report provides a statement that the accountant is not aware of any material modifications that should be made to the financial statements The accountant is required to perform inquiry and analytical procedures The accountant is required to perform verification and substantiation procedures None the auditor provides an opinion as to whether the financial statements present fairly, in all material respects, the company s financial position, results of operations and cash flows Situations requiring different levels of service Generally appropriate for privately held companies and are often prepared for simple situations (e.g., a lender needs GAAP financial statements instead of the statements the internal accounting system produces or the lender needs the comfort provided by knowing that an accountant read the financial statements) Often prepared for privately held companies because of requirements of outside third parties (such as banks, creditors and potential purchasers) that are looking for comfort that the financial statements are not materially misstated Often prepared for companies because outside third parties (such as banks, creditors, potential purchasers and outside investors) require an auditor s opinion on the financial statements Differences in costs for each level of service Involves the lowest amount of work and as a result is far less costly than a review or audit More costly than a compilation but substantially lower in cost than an audit Involves the most work and therefore the cost is substantially higher than a review or compilation and fair presentation of the financial statements; that a review includes primarily applying analytical procedures to management s financial data and making inquiries of management; that a review is substantially less in scope than an audit and that the CPA is not aware of any material modifications that should be made to the financial PCPS Private Companies Practice Section aicpa.org/pcps 2010 American Institute of CPAs statements for them to be in conformity with the applicable financial reporting framework. Audit Audited financial statements provide the user with the auditor s opinion that the financial statements are presented fairly, in all material respects, in conformity with the applicable financial reporting framework. In an audit, the auditor is required by auditing standards generally accepted in the United States of America (GAAS) to obtain an understanding of the entity s internal control and assess fraud risk. The auditor also is required to corroborate the amounts and disclosures included in the financial statements by obtaining audit evidence through inquiry, physical inspection, observation, third-party confirmations, examination, analytical procedures and other procedures. The auditor issues a report that states the audit was conducted in accordance with GAAS, the financial statements are the responsibility of management, provides an opinion that the financial statements present fairly in all material respects the financial position of the company and the results of operations are in conformity with the applicable financial reporting framework (or issues a qualified opinion if the financial statements are not in conformity with the applicable financial reporting framework. The auditor may also issue a disclaimer of opinion or an adverse opinion if appropriate). Att 4: Compilation vs. Review vs. Audit Page 12 of

13 To provide leadership through advocacy, education, mutual support and networking to cities in King County as they act locally and partner regionally to create livable vital communities. SCA Draft 2019 Legislative Agenda Address the Affordable Housing and Homelessness Crisis The state must partner with cities to preserve and expand the supply of affordable housing, and address behavioral health needs and other root causes of homelessness. Sound Cities Association urges the Legislature to: Increase the supply of affordable housing, including: o Continued investment and expansion of the Housing Trust Fund o Reform condominium liability law to promote new construction while protecting consumers o Allow cities to create and preserve affordable housing through optional local tools Address other underlying causes of homelessness by making increased investments in our state s behavioral health system Invest in Transportation The regional network of major and minor arterials and other connecting roads in the state are at a critical juncture with aging infrastructure, declining revenues, and rapidly expanding economic growth. While the 2015 Connecting Washington Transportation Package provided funding for important large state-owned projects, it did not address the capacity or maintenance needs of this critical network. Sound Cities Association urges the Legislature to: Create stable, long-term funding available to cities to address maintenance and preservation of existing infrastructure Reinvest in the Public Works Trust Fund, a highly effective tool that provides a source of revenue for low-interest infrastructure financing Provide Flexible Funding Tools for Cities to Address Local Priorities City revenue streams are limited and are not keeping up with rising costs. Many funding sources are dedicated and don t fully address cities needs, while the state is increasing city responsibilities without providing adequate funding. Sound Cities Association urges the Legislature to: Give cities flexible funding tools to address local priorities, such as: o Replacing the arbitrary annual 1% cap on property tax increases with a limit tied to inflation plus population growth o Increasing flexibility for REET and other revenues to address critical needs o Continue streamlined sales tax mitigation to affected cities Maintain the state s responsibility to cities by: o Continuing to meet the state s obligation to share revenues with cities o Not burdening cities with unfunded mandates o Fully funding the Basic Law Enforcement Academy, MRSC, and other city priorities Att 5: Draft 2019 SCA Legislative Agenda Page 13 of 26

14 SCA Public Issues Committee MINUTES September 12, :00 PM Renton City Hall 1055 S Grady Way, Renton WA Welcome and Roll Call PIC Chair Council President Ed Prince, Renton, called the meeting to order at 7:03 PM. 27 cities had representation (Attachment A). Guests present included Council President Angela Birney, Redmond (PIC Alternate); Councilmember Tamie Deady, Black Diamond (PIC Alternate), Carol Simpson, Newcastle (PIC Alternate); Councilmember Pam Fernald, SeaTac (PIC Alternate); Councilmember Susan Boundy-Sanders, Woodinville; Doug Levy, City of Renton consultant; Alex Herzog, City of Woodinville staff; Colleen Kelly, City of Redmond staff; Pat McLaughlin, King County staff; Michael Huddleston, King County Council staff; Alison Mendiola, King County Council staff. 2. Public Comment Chair Prince asked if any member of the public would like to provide public comment. Seeing none, Chair Prince closed the public comment portion of the meeting. 3. Approval of the July 11, 2018 PIC Minutes Chair Prince asked if there were any amendments to the July 11, 2018 PIC minutes. Mayor Nancy Backus, Auburn moved, seconded by Councilmember Janie Edelman, Black Diamond, to approve the July 11, 2018 PIC minutes. There was no discussion. The motion passed unanimously. 4. Chair s Report Chair Prince reported that members of the SCA Board have been holding meetings with members of the King County Council and that issues discussed include the King County Parks Levy development process, the county s budget outlook, and proposals under consideration at the county related to lodging tax. Prince also noted that numerous mayors had signed a letter to Executive Constantine regarding the County s inquest process. The Executive has reached out to Prince and SCA President Walen to discuss. 5. Executive Director s Report Executive Director Deanna Dawson reported that the SCA Finance Committee recently met with King County Budget Director Dwight Dively and were provided a briefing on the outlook for the 2019 King County budget. She said Dively reported that while there are ongoing structural problems with long-term funding for county services, major budget cuts are not expected in 2019 due to the strength of the economy. Page 14 of 26

15 Executive Director Dawson reported on a recent call for nominations to fill a vacant seat on the King County Conservation District Advisory Committee. She said that in accordance with SCA Board Policies, nominations to fill vacancies on regional boards and committees occurring after August 1st are sent directly to the Board for their consideration. Executive Director Dawson reported that the Board would be addressing a vacancy on the Puget Sound Regional Council Executive Board. The City of Auburn recently passed the 80,000person population threshold entitling the city to a seat on the Executive Board. Auburn Mayor Nancy Backus currently represents SCA on the PSRC Executive Board and this position will be vacated when Auburn s new seat is established SCA Legislative Agenda SCA Policy Consultant Scott MacColl reported that the SCA Legislative Committee met on September 7th to begin developing the 2019 SCA legislative agenda. He provided a handout (Attachment B) with an initial draft legislative agenda proposed by the Legislative Committee. PIC members were asked to provide comments prior to the October PIC meeting. In October, PIC members will be asked to finalize the agenda and take action to bring the agenda back to the following PIC meeting for a formal recommendation to the SCA Board of Directors. Council President Tola Marts, Issaquah, stated that distribution of marijuana tax revenues is a topic of interest to Issaquah. Councilmember Toby Nixon, Kirkland, said that the city is considering a request for funding to study shared housing and how it could help address the affordable housing crisis. He suggested the Legislative Committee consider adding a request to fund more training capacity at the Washington State Corrections Officers Academy. Mayor Nancy Backus, Auburn, said that she supported the inclusion of a request for additional training capacity at the Washington State Basic Law Enforcement Academy shown on the draft legislative agenda. Councilmember Hank Margeson, Redmond, agreed with Mayor Backus and said that he would like to see the request prioritized in the agenda. He said that he would like to see the transportation priority focus on investing in mobility. Councilmember Sue-Ann Hohimer, Normandy Park, said that she would like to see efforts to address affordable housing that create paths to homeownership and equity-building prioritized. 7. Homelessness Update Executive Director Deanna Dawson gave an update on homelessness. She noted that the region has multiple levies and governing bodies that could be better coordinated to address the homelessness crisis in the region. She reported that Seattle and King County signed a Memorandum of Understanding agreeing to address governance, and to make a recommendation by December She said that SCA was asked to participate in these discussions and that she is representing SCA with the assistance of Colleen Kelly, Redmond staff, and Merina Hanson, Kent staff. She noted that members of the philanthropic and the business communities are also participating in work, which will also cover an assessment of existing investments, and a business plan to guide future action. Page 15 of 26

16 Councilmember Traci Buxton, Des Moines, asked if the governance discussions were related to an effort underway to form a housing collaboration among cities in south King County. Mayor Nancy Backus, Auburn, said that the proposed South King Housing and Homelessness Partnership (SKHHP) is a separate but related effort that will give cities in South King County a stronger voice in housing and homelessness policy in the region. Dawson noted that several consultants had been retained to assist with this work SCA and its member cities will not be asked to contribute toward those costs. One of the consulting teams is interested in conducting a focus group with SCA cities. Dawson asked if members would be interested in postponing an upcoming pre-pic workshop to allow for this. Members were enthusiastic, and asked that the October pre-pic be postponed to allow this focus group to happen at that time. Dawson agreed to see if the date would work for the consultants, and to confirm for PIC. 8. Regional Affordable Housing Task Force SCA Policy Director Brian Parry provided a report on the work of the King County Regional Affordable Housing Task Force (Task Force). In September, the Task Force released a draft FiveYear Action Plan (Action Plan) for public comment. The draft Action Plan includes seven highlevel goals for addressing the region s housing affordability crisis as well as recommended implementation strategies for adoption at the city, county, and state level. The Task Force has worked with the assistance of a technical advisory group to prioritize strategies that can be leveraged at the regional level for the greatest impact associated with these goals. Parry noted that many of the actions identified in the draft Action Plan are already being implemented to some degree by cities in King County, and that the intent of the Task Force is to learn from these programs and policies, identify priority actions, and collaborate to build capacity to expand successful programs to a regional scale. Parry said that the Task Force is working to finalize its recommendations and that it is very important for cities to provide feedback as soon as possible if they have any concerns about what is being proposed or if they feel priorities are missing from the draft plan. A revised draft of the plan is expected to be completed in time to be considered by the PIC in October, at which time the PIC will discuss whether to bring back to the following PIC meeting a policy position related to the Action Plan. Parry said that the Task Force is considering options for how the recommended strategies will be coordinated and overseen moving forward. The draft plan includes several potential options for oversight, and the proposal that currently seems to have the most support is to create a working committee under the authority of the King County Growth Management Planning Council. The proposal is that this committee would include representatives from cities, King County, and stakeholders, and that it would be tasked with monitoring and assisting with implementation of the priority actions identified in the draft Action Plan. He said the Task Force is still working through how this work will be coordinated with ongoing efforts to revise how homelessness services are governed in King County. Att 6: Draft PIC Minutes Page 16 of 26

17 Parry provided a handout (Attachment C) summarizing the goals and strategies in the draft Action Plan. He asked PIC members to review the plan with their cities and to provide any feedback as soon as possible in September. Mayor Sean Kelly, Maple Valley, described recent efforts in the city to count the homeless population, and asked PIC members about similar efforts. Councilmember Kate Kruller, Tukwila, and Councilmember Ross Loudenback, North Bend, said that they participate Count Us In, the annual countywide effort to collect data on the needs of people experiencing homelessness. Kelly expressed concerns about how the count was conducted in his area of the County, and whether the homeless numbers were accurately counted. Mayor David Baker, Kenmore, noted that PIC members have regularly discussed the importance of addressing the affordable housing crisis in the region. He said that the Task Force is close to wrapping up its work and stressed that now is the time for cities to provide their feedback and help address the problem. He said the problem is far-reaching and growing every day, and that retiring seniors are being heavily impacted. Mayor Nancy Backus, Auburn, said that the city hosted a community meeting of the Task Force on Tuesday night that she participated in, and that there was good discussion there about what can be done to address the problem. Councilmember Kate Kruller, Tukwila, said that the city is currently working on several affordable housing developments. She said that cities need to make a commitment now to addressing affordable housing, and that she would like more information about what the Task Force will be recommending for cities. Mayor David Baker, Kenmore, said that legislation is being circulated for 2019 that would mandate affordable housing and increased densities near transit. He said that cities should be proactive to ensure housing is accommodated in ways that fit each city s vision rather than becoming a mandate from the state. Councilmember Hank Margeson, Redmond, said that the PIC previously discussed the need for assistance for cities to implement affordable housing strategies and that more unfunded mandates would not be well received. He said the region needs to do a better job tracking and communicating what money is being spent on affordable housing and the results of those efforts. 9. Comprehensive Solid Waste Management Plan and Proposed Fees SCA Policy Analyst Cynthia Foley provided a report on the Comprehensive Solid Waste Management Plan and proposed solid waste fees for 2019 and Foley reported that the Regional Policy Committee (RPC) began review of the Executive proposed King County Comprehensive Solid Waste Management Plan (Plan) in August. She noted that several changes have been made since a draft version of the plan was presented to the PIC in February. The draft version suggested several options for long-term disposal and Att 6: Draft PIC Minutes Page 17 of 26

18 adding transfer capacity in Northeast King County. She said that the current version narrows these options, recommending capital investments to extend the life of the Cedar Hills Regional Landfill through 2040 and the construction of new transfer station in Northeast King County. Foley stated that the plan does not specify the next disposal method after ultimate closure of Cedar Hills. She encouraged PIC members to provide comments on a preferred disposal method after 2040 and the process for evaluating those options. Foley reported that the modeled cost per ton and greenhouse gas emissions for the long-term disposal options considered in the planning process are shown on page 48 of the PIC packet. Foley said the proposed Plan recommends closing Houghton Transfer Station after constructing a new station in Northeast King County. She stated that planning for a new Northeast station would begin in 2019, after approval of the Plan. Foley noted that the RPC and King County Council will review the Plan through October. Cities will then act to approve or disapprove the Plan. She said that the King County Council may approve the proposed solid waste fees in September Foley reported on proposed solid waste fees under consideration by the King County Council in Ordinance She said the per-ton solid waste fee known as the tipping fee or basic rate is proposed to increase from the current $ to $ per ton, an increase of 4.6 percent. Foley said that on average the change would add $0.34 cents to the single-family monthly curbside bill. Councilmember Traci Buxton, Des Moines said that she was concerned about the lack of a plan for disposal when capacity at the Cedar Hills landfill is reached. Deputy Mayor Austin Bell, Burien, noted that the plan identifies options post-cedar Hills closure, and identified the need to start that planning. Councilmember Tola Marts expressed concern about the differences in greenhouse gas emissions described in the Plan and whether these were reflected accurately. Mayor David Baker, Kenmore, said that the region should continue to look at waste-to-energy options for future disposal. Deputy Mayor Catherine Stanford, Lake Forest Park, said that Councilmember Phillippa Kassover, Lake Forest Park, serves on the Solid Waste Advisory Committee and wrote a letter regarding the plan that she would share with PIC members (Attachment D). 10. Future Levies and Ballot Measures SCA Policy Director Brian Parry provided an update on future levies and ballot measures in King County and results from the August 7th primary election the PIC was tracking. The Automated Att 6: Draft PIC Minutes Page 18 of 26

19 Fingerprint Identification System (AFIS) levy was approved with a vote of 56% in favor. A levy proposed by South King Fire and Rescue was approved with a vote of 59% in favor. Parry said that measures have been officially filed for the November general election by the cities of Bothell, Covington, Kirkland, Mercer Island, and Shoreline. 11. Potential Upcoming SCA Issues Executive Director Deanna Dawson reported on upcoming SCA meetings and pre-pic workshops. 12. Informational Item a. Recycling Communications Toolkit Chair Prince noted that there is an informational item on a recycling communications toolkit included in the PIC packet. 13. Upcoming Events Chair Prince noted that the SCA Public Issues Committee Meeting is on Wednesday, October 10th, 2018 at 7:00 PM (6:00 Pre-PIC Workshop) at Renton City Hall. Executive Director Deanna Dawson reported that the SCA Annual meeting would take place on December 5th. She said the speaker would be Washington State Governor Jay Inslee and that the location was to be determined. 14. For the Good of the Order Chair Prince asked if PIC members had anything to report for Good of the Order. Councilmember Janie Edelman, Black Diamond, said the city would be hosting their annual Community Preparedness Fair on Saturday, September 29th, from 9:00 AM to 2:00 PM at Rock Creek Elementary School. Councilmember Toby Nixon, Kirkland, said that the King County Charter Review Commission recently held its first meeting. Nixon said that he was participating on the outreach committee for the Commission, and encouraged members to provide him with any suggestions of community organizations and others who should be engaged. Mayor Nancy Backus, Auburn, said that the Greater Seattle Partnership is getting off the ground and recently hired Brian McGowan as its first Chief Executive Officer. She also reported that James Henderson, formerly with the City of Bellevue, has been hired by the Greater Seattle Partnership to be their Chief Operating Officer. Councilmember Joseph Cimaomo, Covington, reported that the City of Covington recently partnered with ClearGov to improve transparency by providing residents with online access to city budget information. Councilmember Hank Margeson, Redmond, said the city would be hosting a grand opening celebration for its Downtown Park on Saturday, September 15 th, beginning at 1:00 PM with a scavenger hunt followed by a ribbon cutting at 5:00 and activities throughout the day. Att 6: Draft PIC Minutes Page 19 of 26

20 Councilmember Kruller said that the Rave Foundation, a charity supported by the Seattle Sounders, would be holding a charity Rave Green Run in the City of Tukwila on Saturday, September 15th, at 9:00 AM. Acting Mayor Erin Sitterley, SeaTac, reported that the SeaTac mayor resigned for health reasons and a mayor would be appointed at their next meeting. She said that she is currently serving as the Acting Mayor. Vice Chair Christie Malchow, Sammamish, said the city would be hosting its 13th annual Sammamish Disaster Preparedness Fair on Saturday, September 22nd, from 9:00 AM to 3:00 PM at Sammamish Commons Plaza at City Hall. She said this year s fair will feature the Big Shaker, the world s biggest earthquake simulator, which can simulate the intense shaking of a magnitude 8.0 earthquake. 15. Adjourn The meeting was adjourned at 8:40 PM. Att 6: Draft PIC Minutes Page 20 of 26