HomeMy WebLinkAbout07-15-2024 AgendaCity Council Meeting
J uly 15, 2024 - 7:00 P M
City Hall Council Chambers
A GE NDA
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I .C AL L T O O RD E R
I I .L AND AC K NO WL E D G M E NT
We would like to acknowledge the Federally Recognized Muckleshoot I ndian Tribe, the
ancestral keepers of the land we are gathered on today. We thank them for their
immense contributions to our state and local history, culture, economy, and identity as
Washingtonians.
I I I .P UB L I C PART I C IPAT IO N
1.Public Participation
T he Auburn City Council Meeting scheduled for Monday J uly 15, 2024 at 7:00
p.m. will be held in person and virtually.
Virtual P articipation L ink:
To view the meeting virtually please click the below link, or call into the meeting at
the phone number listed below. The link to the Virtual Meeting is:
https://www.youtube.com/user/watchauburn/live/?nomobile=1
To listen to the meeting by phone or Z oom, please call the below number or click
the link:
Telephone: 253 205 0468
Toll Free: 888 475 4499
Z oom: https://us06web.zoom.us/j/87809145944
A .P ledge of Allegiance
I V.Roll Call
V.ANNO UNC E M E NT S, M AY O R'S P RO C L AM AT IO NS, AND P RE S E NTAT I O NS
V I .AG E ND A M O D I F IC AT I O NS
V I I .C IT IZE N I NP UT, P UB L I C HE ARI NG S AND C O RRE S P O ND E NC E
A .Audience Participation
Page 1 of 71
This is the place on the agenda where the public is invited to speak to the City
Council on any issue.
1.T he public can participate in-person or submit written
comments in advance.
Participants can submit written comments via mail, fax, or email. All written
comments must be received prior to 5:00 p.m. on the day of the scheduled
meeting and must be 350 words or less.
Please mail written comments to:
City of A uburn
Attn: Shawn Campbell, City Clerk
25 W Main S t
Auburn, WA 98001
Please fax written comments to:
Attn: Shawn Campbell, City Clerk
F ax number: 253-804-3116
Email written comments to:
publiccomment@auburnwa.gov
I f an individual requires an accommodation to allow for remote oral comment
because of a difficulty attending a meeting of the governing body, the City
requests notice of the need for accommodation by 5:00 p.m. on the day of the
scheduled meeting. Participants can request an accommodation to be able to
provide remote oral comment by contacting the City Clerk’s Office in person, by
phone (253) 931-3039, or email to publiccomment@auburnwa.gov
B .Correspondence - (T here is no correspondence for Council review.)
V I I I .C O UNC I L AD HO C C O M M IT T E E RE P O RT S
Council Ad Hoc Committee Chairs may report on the status of their ad hoc Council
Committees' progress on assigned tasks and may give their recommendation to the
City Council, if any.
1.Council Rules of Procedure Ad Hoc Committee (Chair
Amer)
2.F inance Ad Hoc Committee (Chair B aldwin)
I X.C O NS E NT AG E ND A
All matters listed on the Consent Agenda are considered by the City Council to be
routine and will be enacted by one motion in the form listed.
A .Minutes of the J uly 1, 2024, City Council Meeting
B .Minutes of the J uly 8, 2024, S tudy S ession Meeting
Page 2 of 71
C.Claims Vouchers (Thomas)
Claims voucher list dated J uly 10, 2024 which includes voucher number 476478
through voucher 476648, and voucher 476650, in the amount of $11,428,400.56,
eleven electronic fund transfers in the amount of $2,936.71, and two wire transfers in
the amount of $715,106.74
D.Claims Voucher (Thomas)
Claims voucher list dated J uly 10, 2024 which includes voucher number 476649, in the
amount of $2,500.00
E .P ayroll Voucher (T homas)
P ayroll check numbers 539595 through 539599 in the amount of $178,484.26,
electronic deposit transmissions in the amount of $2,869,315.81, for a grand total of
$3,047,800.07 for the period covering J une 27, 2024 to J uly 10, 2024
(RE C O M M E ND E D AC T I O N: M ove to approve the Consent Agenda.)
X .UNF INIS HE D B US I NE S S
X I .NE W B US I NE S S
X I I .O RD INANC E S
A .Ordinance No. 6943 (T homas)
A n Ordinance amending S ections 3.53.020, 3.53.040, and 3.54.150 of the Auburn City
Code relating to the administration of the City Business & Occupation (B&O) Tax
(RE C O M M E ND E D AC T I O N: M ove to approve Ordinance No. 6943.)
B .Ordinance No. 6944 (T homas)
A n Ordinance amending Auburn City Code S ection 3.52.020 and repealing Auburn
City Code Section 3.52.040 related to the administration of City Admissions Tax
(RE C O M M E ND E D AC T I O N: M ove to approve Ordinance No. 6944.)
X I I I .RE S O L UT IO NS
A .Resolution No. 5774 (Faber)
A Resolution authorizing the Mayor to execute an agreement between the City of
A uburn and the Cascade Bicycle Club to accept and expend grant funds for the
operation of two City B icycle Programs
(RE C O M M E ND E D AC T I O N: M ove to adopt Resolution No. 5774.)
X I V.M AY O R AND C O UNC I L M E M B E R RE P O RT S
At this time the Mayor and City Council may report on significant items associated with
their appointed positions on federal, state, regional and local organizations.
A .From the Council
B .From the M ayor
Page 3 of 71
X V.AD J O URNM E NT
Agendas and minutes are available to the public at the City Clerk's Office, on the City website
(http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review
at the City Clerk's Office.
Page 4 of 71
AGENDA BILL APPROVAL FORM
Agenda Subject:
Minutes of the July 1, 2024, City Council Meeting
Date:
July 11, 2024
Department:
City Council
Attachments:
07-01-2024 Minutes
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
Background for Motion:
Background Summary:
Rev iewed by Council Committees:
Councilmember:Staff:
Meeting Date:July 15, 2024 Item Number:CA.A
Page 5 of 71
City Council Meeting
J uly 1, 2024 - 7:00 P M
City Hall Council Chambers
MINUT E S
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I .C AL L T O O RD E R
Mayor Backus called the meeting to order at 7:00 p.m. in the Council
Chambers of Auburn City Hall, 25 West Main Street.
I I .L AND AC K NO WL E D G M E NT
I I I .P UB L I C PART I C IPAT IO N
1.Public Participation
The City Council Meeting was held in person and virtually.
A .P ledge of Allegiance
Mayor Backus led those in attendance in the Pledge of Allegiance.
I V.Roll Call
Councilmembers present: Hanan A mer, Cheryl Rakes, Clinton Taylor,
Tracy Taylor, and Acting Deputy Mayor Yolanda Trout-Manuel.
Councilmember K ate Baldwin attended the meeting virtually, and Deputy
Mayor L arry Brown was excused.
Mayor Nancy Backus and the following staff members present included:
A cting City A ttorney Doug Ruth, Chief of Police Mark Caillier, Director of
P ublic Works I ngrid Gaub, A cting Director of Community Development
J ason Krum, Director of S pecial Projects J eff Tate, A cting City A ttorney
Charlotte S torey, Business Systems A nalyst Chrissy Malave, and City
Clerk S hawn Campbell.
V.ANNO UNC E M E NT S, M AY O R'S P RO C L AM AT IO NS, AND P RE S E NTAT I O NS
There were no announcements, Mayor's proclamations, or presentations.
V I .AP P O I NT M E NT S
A .A uburn J unior City Council
City Council to approve the appointment of L illyann Mertens to the Auburn J unior City
Council for a two year term expiring A ugust 31, 2026
Page 1 of 5Page 6 of 71
A cting Deputy Mayor Trout-Manuel moved and Councilmember C. Taylor
seconded to approve the appointment of L illyann Mertens to the A uburn
J unior City Council for a two-year term expiring on A ugust 31, 2026.
MO T I O N C A R R I E D UNA NI MO US LY. 6-0
V I I .AG E ND A M O D I F IC AT I O NS
There were no modifications to the agenda.
V I I I .C IT IZE N I NP UT, P UB L I C HE ARI NG S AND C O RRE S P O ND E NC E
A .Audience Participation
This is the place on the agenda where the public is invited to speak to the City
Council on any issue.
1.T he public can participate in-person or submit written
comments in advance.
Written Comments:
S haranjit S ingh - A uburn, W A
S haranjit expressed concerns regarding inoperable vehicles,
garbage, and rats in their neighborhood.
A pril P oirier - Auburn, WA
A pril expressed concerns regarding the use of toxic biosolids as
fertilizer and compost.
In-P erson Comments:
Ron Boyle - B elfair WA
Ron expressed concerns regarding crime at his vacant rental
property.
A lexander Ollivant - A uburn, W A
A lexander expressed concerns about short term rentals and the cost
of housing in the area.
Diana J ohnson - A uburn, W A
Diana expressed concerns regarding crime and violence in the City
of Auburn.
B .Correspondence
There was no correspondence for Council to review.
Page 2 of 5Page 7 of 71
I X.C O UNC I L AD HO C C O M M IT T E E RE P O RT S
Council Ad Hoc Committee Chairs may report on the status of their ad hoc Council
Committees' progress on assigned tasks and may give their recommendation to the
City Council, if any.
1.Council Rules of Procedure Ad Hoc Committee (Chair
Amer)
Councilmember Amer, Chair of the Council Rules of P rocedure A d
Hoc Committee, reported they met last week, and requested all
proposed changes be emailed to the City Clerk.
2.F inance Ad Hoc Committee (Chair B aldwin)
Councilmember B aldwin, Chair of the F inance Ad Hoc Committee,
reported she and Councilmember A mer reviewed the claims and
payroll vouchers described on the agenda this evening and
recommended their approval.
X .C O NS E NT AG E ND A
All matters listed on the Consent Agenda are considered by the City Council to be
routine and will be enacted by one motion in the form listed.
A .Minutes of the J une 17, 2024 City Council Meeting
B .Minutes of the J une 24, 2024 S tudy S ession Meeting
C.Claims Vouchers (Thomas)
Claims voucher list dated J une 26, 2024 which includes voucher number 476317
through voucher 476477, in the amount of $3,159,665.70, five electronic fund transfers
in the amount of $1,889.09, and three wire transfers in the amount of $871,128.35
D.P ayroll Voucher (T homas)
P ayroll check numbers 539594 through 539594 in the amount of $639,202.07,
electronic deposit transmissions in the amount of $2,745,664.21, for a grand total of
$3,384,866.28 for the period covering J une 13, 2024 to J une 26, 2024
A cting Deputy Mayor Trout-Manuel moved and Councilmember Rakes
seconded to approve the consent agenda.
MO T I O N C A R R I E D UNA NI MO US LY. 6-0
X I .UNF INIS HE D B US I NE S S
There was no unfinished business.
X I I .NE W B US I NE S S
There was no new business.
Page 3 of 5Page 8 of 71
X I I I .O RD INANC E S
A .Ordinance No. 6942 (Gaub)
A n Ordinance granting to Z ayo Group, L L C, a Delaware L imited L iability Company, a
Franchise for W ireline Telecommunications
Councilmember T. Taylor moved and Councilmember C. Taylor seconded
to approve Ordinance No. 6942.
MO T I O N C A R R I E D UNA NI MO US LY. 6-0
X I V.RE S O L UT IO NS
A .Resolution No. 5773 (Tate)
A Resolution approving the South K ing Housing and Homelessness P artners 2025
Work P lan and 2025 Operating Budget
Councilmember C. Taylor moved and Councilmember T. Taylor seconded
to adopt Resolution No. 5773.
MO T I O N C A R R I E D UNA NI MO US LY. 6-0
X V.M AY O R AND C O UNC I L M E M B E R RE P O RT S
At this time the Mayor and City Council may report on significant items associated with
their appointed positions on federal, state, regional and local organizations.
A .From the Council
Councilmember B aldwin reported she attended the Association of
Washington Cities (AW C) Conference, and the J uneteenth Celebration.
Councilmember Rakes reported she attended the AW C Conference,
J uneteenth Celebration, and Ribbon Cutting events for Third Dimension
S alon and Facelines B eauty S tudio.
Councilmember T. Taylor reported she attended the AW C Conference,
and the Piece County Transit Board Meeting.
A cting Deputy Mayor Trout-Manuel reported she attended the National
A ssociation of L atino Elected & Appointed Officials (NA L E O)
Conference, J uneteenth Celebration, K ids Day Event, S ound Cities
A ssociation Meeting, and the A rts of L ove I sland F est event.
B .From the M ayor
Mayor Backus reported she attended the AW C B oard of Directors
meeting, the AW C Conference, and the J uneteenth Celebration.
Page 4 of 5Page 9 of 71
X V I .AD J O URNM E NT
There being no further business to come before the Council, the
meeting was adjourned at 7:30 p.m.
A P P R O V E D this 15th day of J uly 2024.
____________________________ ____________________________
NA NC Y B A C K US, MAYO R S hawn Campbell, City Clerk
Agendas and minutes are available to the public at the City Clerk's Office, on the City website
(http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review
at the City Clerk's Office.
Page 5 of 5Page 10 of 71
AGENDA BILL APPROVAL FORM
Agenda Subject:
Minutes of the July 8, 2024, Study Session Meeting
Date:
July 11, 2024
Department:
City Council
Attachments:
07-08-2024 Minutes
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
Background for Motion:
Background Summary:
Rev iewed by Council Committees:
Councilmember:Staff:
Meeting Date:July 15, 2024 Item Number:CA.B
Page 11 of 71
City Council Study Session
J uly 8, 2024 - 5:30 P M
Finance and Internal Serv ices S FA - City
Hall Council Chambers
MINUT E S
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I .C A L L TO O R D E R
A cting Deputy Mayor Trout-Manuel called the meeting to order at 5:32 p.m.
in the Council Chambers of A uburn City Hall, 25 West Main S treet in
A uburn.
I I .P UB L I C PA RT I C I PAT I O N
A .P ublic P articipation
The City Council Meeting was held in person and virtually.
B .Roll Call
Councilmembers present: Acting Deputy Mayor Yolonda Trout-Manuel,
Hanan A mer, Cheryl Rakes, and Clinton Taylor. Deputy Mayor B rown and
Councilmember Tracy Taylor were excused. Councilmember K ate Baldwin
was unexcused.
Mayor Nancy Backus and the following staff members present included:
A cting City A ttorney Doug Ruth, Assistant Chief of Police S amuel
B etz, Acting Director of Community Development J ason K rum, Director of
Finance J amie Thomas, P lanning S ervices Manager A lexandria Teague,
Development Review Engineer Shannon Howard, Acting City Attorney
Charlotte S torey, Business Systems A nalyst Chrissy Malave, and City
Clerk S hawn Campbell.
I I I .A G E ND A MO D I F I C AT I O NS
There were no modifications to the agenda.
I V.A NNO UNC E ME NT S , R E P O RT S , A ND P R E S E NTAT I O NS
A .B riefing - P ermit Timelines and L egislative Mandates (K rum) (30 Minutes)
P resentation on permitting timeline requirements and upcoming changes in response
to recent Washington S tate L egislation
A cting Director K rum, Manager Teague, and Engineer Howard provided
Council with a presentation on permit timelines and legislative mandates
Page 1 of 2Page 12 of 71
including a background of R C W 36.70B regarding L ocal P roject Review,
House Bill (HB ) 5290 which amends R C W 36.70B, new City requirements
under HB 5290, City plans to meet the new requirements of HB 5290,
plans to update Title 14 of the A uburn City Code, and the next steps of
implementation of updates.
Council discussed staff's ability to meet the abbreviated timelines.
B .R E D I Report Out
Mayor Backus provided Council with an update on the Racially E quitable,
Diverse, and I nclusive (R E D I ) P rogram.
V.F I NA NC E A ND I NT E R NA L S E RV I C E S D I S C US S I O N I T E MS
A .Ordinance No. 6943 (T homas) (5 Minutes)
A n Ordinance amending S ections 3.53.020, 3.53.040, and 3.54.150 of the Auburn City
Code relating to the administration of the City Business & Occupation (B&O) Tax
Councilmember Amer Chaired this portion of the meeting.
Director T homas provided Council with an overview of Ordinance No. 6943
regarding cleaning up language for consistency within the A uburn City
Code, and updates of the Administrative Conditions Section of the B &O
Tax Code.
B .Ordinance No. 6944 (T homas) (5 Minutes)
A n Ordinance amending Auburn City Code S ection 3.52.020 and repealing Auburn
City Code Section 3.52.040 related to the administration of City Admissions Tax
Director T homas provided Council with an overview of Ordinance No. 6944
clarifying the changes to the A dmissions Tax Code, and removing the
requirement of a Certificate of Registration.
Council discussed how City staff confirms businesses are charging the
A dmissions Tax.
V I .A D J O UR NME NT
There being no further business to come before the Council, the meeting
was adjourned at 6:05 p.m.
A P P R O V E D this 15th day of J uly 2024.
____________________________ ____________________________
L A R RY B R O W N, D E P UT Y MAYO R S hawn Campbell, City Clerk
Agendas and minutes are available to the public at the City Clerk's Office, on the City website
(http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review
at the City Clerk's Office.
Page 2 of 2Page 13 of 71
AGENDA BILL APPROVAL FORM
Agenda Subject:
Claims Vouchers (Thomas)
Date:
July 11, 2024
Department:
Finance
Attachments:
No Attachments Av ailable
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
Approve Claim Vouchers.
Background for Motion:
Background Summary:
Claims voucher list dated July 10, 2024 which includes voucher number 476478 through
voucher 476648, and voucher 476650, in the amount of $11,428,400.56, eleven electronic
fund transfers in the amount of $2,936.71, and two wire transfers in the amount of
$715,106.74.
Rev iewed by Council Committees:
Councilmember:Kate Baldwin Staff:Jamie Thomas
Meeting Date:July 15, 2024 Item Number:CA.C
Page 14 of 71
AGENDA BILL APPROVAL FORM
Agenda Subject:
Claims Voucher (Thomas)
Date:
July 11, 2024
Department:
City Attorney
Attachments:
No Attachments Av ailable
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
Approve Claim Voucher.
Background for Motion:
Background Summary:
Claims voucher list dated July 10, 2024 which includes voucher number 476649, in the
amount of $2,500.00.
Rev iewed by Council Committees:
Councilmember:Kate Baldwin Staff:Jamie Thomas
Meeting Date:July 15, 2024 Item Number:CA.D
Page 15 of 71
AGENDA BILL APPROVAL FORM
Agenda Subject:
Payroll Voucher (Thomas)
Date:
July 11, 2024
Department:
Finance
Attachments:
No Attachments Av ailable
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
Approve Payroll Vouchers.
Background for Motion:
Background Summary:
Payroll check numbers 539595 through 539599 in the amount of $178,484.26, electronic
deposit transmissions in the amount of $2,869,315.81, for a grand total of $3,047,800.07 for
the period covering June 27, 2024 to July 10, 2024.
Rev iewed by Council Committees:
Councilmember:Kate Baldwin Staff:Jamie Thomas
Meeting Date:July 15, 2024 Item Number:CA.E
Page 16 of 71
AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6943 (Thomas)
Date:
July 8, 2024
Department:
Finance
Attachments:
Ordinance No. 6943
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
City Council to approve Ordinance No. 6943.
Background for Motion:
Ordinance No. 6943 amends language to the City's Business and Occupation Tax Code to
add clarity and consistent language throughout the code, as well as clarifying provisions for
eligible interest and penalty waiver requests.
Background Summary:
Ordinance No. 6943 amends portions of Auburn City Code (ACC) 3.53 and 3.54 as it relates
to the City's B&O Tax and Administrative Provisions. This amendment provides for
clarification for the definition of "warehouse" and conditions for consideration of waiver
requests for penalties and interest.
The warehouse definition further clarifies and identifies the types of items and activities that
are considered "stored". Additionally, this amendment clarifies that outdoor warehouse space
is measured based on the space available for warehousing, not solely on the size or amount
of goods currently being stored.
Changes to the administrative Code for penalty and interest waivers add conditions for
eligibility if the following are met: the taxpayer has paid and filed all required taxes within the
past 24-months; and any underpaid amounts which resulted in penalties and interest were the
result of written instruction from the Director.
Rev iewed by Council Committees:
Councilmember:Kate Baldwin Staff:Jamie Thomas
Meeting Date:July 15, 2024 Item Number:ORD.A
Page 17 of 71
Page 18 of 71
--------------------------------
Ordinance No. 6943
July 11, 2024
Page 1 of 34
ORDINANCE NO. 6943
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON AMENDING SECTIONS 3.53.020,
3.53.040, AND 3.54.150 OF THE AUBURN CITY CODE
RELATING TO THE ADMINISTRATION OF THE CITY
BUSINESS & OCCUPATION (B&O) TAX
WHEREAS, Auburn City Code (ACC) Chapter 3.53 enacts the City’s B&O tax
and ACC 3.54 adopts corresponding provisions administering the B&O tax; and
WHEREAS, the Auburn B&O tax is imposed on business gross receipts and on
the square footage of business warehouses located in Auburn; and
WHEREAS, the Auburn City Code contains penalties that the City may impose
on a business for failure to pay the B&O tax while also providing for the Finance
Director to waive penalties and interest under certain circumstances; and
WHEREAS, certain provisions in ACC 3.53.020, ACC 3.53.040 and ACC
3.54.150 concerning the definition of “warehouse” and the waiver of tax penalties and
interest require revision to promote consistency and uniformity throughout the code, and
to enable greater clarity and precision in the administration and implementation of the
City’s B&O tax; and
WHEREAS, the revisions proposed in this ordinance are in the best interest of
the City and its taxpayers.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. Amendment to City Code. Section 3.53.020 is hereby amended to
read as set forth in Exhibit A attached to this Ordinance.
Page 19 of 71
--------------------------------
Ordinance No. 6943
July 11, 2024
Page 2 of 34
Section 2. Amendment to City Code. Section 3.53.040 is hereby amended to
read as set forth in Exhibit A attached to this Ordinance.
Section 3. Amendment to City Code. Section 3.54.150 is hereby amended to
read as set forth in Exhibit B attached to this Ordinance.
Section 4. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 5. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section, or portion of this ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this ordinance, or the validity
of its application to other persons or circumstances.
Section 6. Effective date. This Ordinance will take effect and be in force five
days from and after its passage, approval, and publication as provided by law.
INTRODUCED: _______________
PASSED: ____________________
APPROVED: _________________
____________________________
NANCY BACKUS, MAYOR
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Douglas Ruth, Acting City Attorney
Published: _________________________________________________________
Page 20 of 71
Exhibit A
Ordinance 6943
3.53.020 Definitions.
In construing the provisions of this chapter, the following definitions shall be applied.
Words in the singular number shall include the plural, and the plural shall include the
singular.
A. “Adult family home” means a residential home licensed by the Washington State
Department of Social and Health Services (DSHS) pursuant to Chapter 70.128 RCW in
which a person or persons provides personal care, special care, room and board to
more than one but not more than six adults who are not related by blood or marriage to
the person or persons providing the services.
B. Advance, Reimbursement.
1. “Advance” means money or credits a taxpayer receives from a customer or
client for the purpose of paying costs or fees on behalf of the customer or client.
2. “Reimbursement” means money or credits a taxpayer receives from a customer
or client to repay the taxpayer for money or credits expended by the taxpayer in
payment of costs or fees of the customer or client.
C. Agricultural Product, Farmer.
1. “Agricultural product” means any product of plant cultivation or animal
husbandry including, but not limited to: a product of horticulture, grain cultivation,
vermiculture, viticulture, or aquaculture as defined in RCW 15.85.020; plantation
Christmas trees; turf; or any animal including but not limited to an animal that is a
private sector cultured aquatic product as defined in RCW 15.85.020, or a bird, or
insect, or the substances obtained from such animal. “Agricultural product” does not
include animals intended to be pets, marijuana, or marijuana-infused products as
defined by RCW 69.50.101(y) and (ff).
2. “Farmer” means any person engaged in the business of growing or producing,
upon the person’s own lands or upon lands in which the person has a present right
of possession, any agricultural product whatsoever for sale. “Farmer” does not
include a person using such products as ingredients in a manufacturing process, or
a person growing or producing such products for the person’s own consumption.
Page 21 of 71
ORD 6943 EXHIBIT A
“Farmer” does not include a person selling any animal or substance obtained
therefrom in connection with the person’s business of operating a stockyard or a
slaughter or packing house. “Farmer” does not include any person in respect to the
business of taking, cultivating, or raising timber. “Farmer” does not include any
person engaged in the business of growing, producing, processing, selling or
distributing marijuana.
D. Artistic or Cultural Organization.
1. The term “artistic or cultural organization” means an organization which is
organized and operated exclusively for the purpose of providing artistic or cultural
exhibitions, presentations, or performances or cultural or art education programs, as
defined in subsection (D)(10) of this section, for viewing or attendance by the
general public.
2. The organization must be a not-for-profit corporation under Chapter 24.03 RCW.
3. The organization must be managed by a governing board of not less than eight
individuals none of whom is a paid employee of the organization or by a corporation
sole under Chapter 24.12 RCW.
4. No part of its income may be paid directly or indirectly to its members,
stockholders, officers, directors, or trustees except in the form of services rendered
by the corporation in accordance with its purposes and bylaws.
5. Salary or compensation paid to its officers and executives must be only for
actual services rendered, and at levels comparable to the salary or compensation of
like positions within the state.
6. Assets of the organization must be irrevocably dedicated to the activities for
which the exemption is granted and, on the liquidation, dissolution, or abandonment
by the organization, may not inure directly or indirectly to the benefit of any member
or individual except a nonprofit organization, association, or corporation which also
would be entitled to the exemption.
7. The organization must be duly licensed or certified when licensing or
certification is required by law or regulation.
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8. The amounts received that qualify for exemption must be used for the activities
for which the exemption is granted.
9. Services must be available regardless of race, color, national origin, ancestry,
religion, age, sex, marital status, Vietnam or disabled veteran status, sexual
orientation, or the presence of any mental or physical disability.
10. The term “artistic or cultural exhibitions, presentations, or performances or
cultural or art education programs” is limited to:
a. An exhibition or presentation of works of art or objects of cultural or
historical significance, such as those commonly displayed in art or history
museums;
b. A musical or dramatic performance or series of performances; or
c. An educational seminar or program, or series of such programs, offered by
the organization to the general public on an artistic, cultural, or historical
subject.
E. “Assisted living facility” means any home or other institution, however named, which
is advertised, announced, or maintained for the express or implied purpose of providing
housing, basic services, and assuming general responsibility for the safety and well-
being of the residents, and may also provide domiciliary care. “Assisted living facility”
shall not include facilities certified as group training homes pursuant to RCW
71A.22.040, nor any home, institution or section thereof which is otherwise licensed and
regulated under the provisions of state law providing specifically for the licensing and
regulation of such home, institution or section thereof. Nor shall it include any
independent senior housing, independent living units in continuing care retirement
communities, or other similar living situations including those subsidized by the
Department of Housing and Urban Development.
F. “Athletic or fitness facility” means an indoor or outdoor facility or portion of a facility
that is primarily used for: exercise classes; strength and conditioning programs;
personal training services; tennis, racquetball, handball, squash, or pickleball; or other
activities requiring the use of exercise or strength training equipment, such as
treadmills, elliptical machines, stair climbers, stationary cycles, rowing machines, pilates
equipment, balls, climbing ropes, jump ropes, and weightlifting equipment.
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G. “Business” includes all activities engaged in with the object of gain, benefit, or
advantage to the taxpayer or to another person or class, directly or indirectly.
H. “Business and occupation tax” or “gross receipts tax” means a tax imposed on or
measured by the value of products, the gross income of the business, or the gross
proceeds of sales, as the case may be, and that is the legal liability of the business.
I. “City” means the city of Auburn, Washington.
J. “Commercial or industrial use” means the following uses of products, including by-
products, by the extractor or manufacturer thereof:
1. Any use as a consumer; and
2. The manufacturing of articles, substances or commodities.
K. “Competitive telephone service” means the providing by any person of
telecommunications equipment or apparatus, or service related to that equipment or
apparatus such as repair or maintenance service, if the equipment or apparatus is of a
type which can be provided by persons that are not subject to regulation as telephone
companies under RCW Title 80 and for which a separate charge is made.
L. “Consumer” means the following:
1. Any person who purchases, acquires, owns, holds, or uses any tangible or
intangible personal property irrespective of the nature of the person’s business.
“Consumer” includes, among others and without limiting its scope, persons who
install, repair, clean, alter, improve, construct, or decorate real or personal property
of or for a consumer other than for the purpose of:
a. Resale as tangible or intangible personal property in the regular course of
business;
b. Incorporating such property as an ingredient or component of real or
personal property when installing, repairing, cleaning, altering, imprinting,
improving, constructing, or decorating such real or personal property of or for
consumers;
c. Incorporating such property as an ingredient or component of a new product
or as a chemical used in processing a new product when the primary purpose of
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such chemical is to create a chemical reaction directly through contact with an
ingredient of a new product; or
d. Consuming the property in producing ferrosilicon which is subsequently
used in producing magnesium for sale, if the primary purpose of such property
is to create a chemical reaction directly through contact with an ingredient of
ferrosilicon;
2. Any person engaged in any business activity that is taxable under ACC
3.53.040;
3. Any person who purchases, acquires, or uses any competitive telephone service
as herein defined, other than for resale in the regular course of business;
4. Any person who purchases, acquires, or uses any personal, business, or
professional service defined as a retail sale or retail service in this section, other
than for resale in the regular course of business;
5. Any person who is an end user of software;
6. Any person engaged in the business of “public road construction” with respect to
tangible personal property when that person incorporates the tangible personal
property as an ingredient or component of a publicly owned street, place, road,
highway, easement, right-of-way, mass public transportation terminal or parking
facility, bridge, tunnel, or trestle by installing, placing, or spreading the property in or
upon the right-of-way of a publicly owned street, place, road, highway, easement,
bridge, tunnel, or trestle, or in or upon the site of a publicly owned mass public
transportation terminal or parking facility;
7. Any person who is an owner, lessee, or has the right of possession to or an
easement in real property which is being constructed, repaired, decorated,
improved, or otherwise altered by a person engaged in business;
8. Any person who is an owner, lessee, or has the right of possession to personal
property which is being constructed, repaired, improved, cleaned, imprinted, or
otherwise altered by a person engaged in business; or
9. Any person engaged in “government contracting.” Any such person shall be a
consumer within the meaning of this subsection with respect to tangible personal
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property incorporated into, installed in, or attached to such building or other
structure by such person. Nothing contained in this or any other subsection of this
section shall be construed to modify any other definition of “consumer.”
M. “Delivery” means the transfer of possession of tangible personal property between
the seller and the buyer or the buyer’s representative. Delivery to an employee of a
buyer is considered delivery to the buyer. Transfer of possession of tangible personal
property occurs when the buyer or the buyer’s representative first takes physical control
of the property or exercises dominion and control over the property. “Dominion and
control” means the buyer has the ability to put the property to the buyer’s own purposes.
It means the buyer or the buyer’s representative has made the final decision to accept
or reject the property, and the seller has no further right to possession of the property
and the buyer has no right to return the property to the seller, other than under a
warranty contract. A buyer does not exercise dominion and control over tangible
personal property merely by arranging for shipment of the property from the seller to
itself. A buyer’s representative is a person, other than an employee of the buyer, who is
authorized in writing by the buyer to receive tangible personal property and take
dominion and control by making the final decision to accept or reject the property.
Neither a shipping company nor a seller can serve as a buyer’s representative. It is
immaterial where the contract of sale is negotiated or where the buyer obtains title to
the property. Delivery terms and other provisions of the Uniform Commercial Code
(RCW Title 62A) do not determine when or where delivery of tangible personal property
occurs for purposes of taxation.
N. “Director” means the finance director of the city or any officer, agent or employee of
the city designated to act on the director’s behalf.
O. “Digital automated service,” “digital code” and “digital goods” have the same
meaning as in RCW 82.04.192.
P. “Digital products” means digital goods, digital codes, digital automated services, and
the services described in RCW 82.04.050(2)(q) and (6)(b).
Q. “Eligible gross receipts tax” means a tax which:
1. Is imposed on the act or privilege of engaging in business activities within ACC
3.53.040; and
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2. Is measured by the gross volume of business, in terms of gross receipts, and is
not an income tax or value added tax; and
3. Is not, pursuant to law or custom, separately stated from the sales price; and
4. Is not a sales or use tax, business license fee, franchise fee, royalty or
severance tax measured by volume or weight, or concession charge, or payment for
the use and enjoyment of property, property right or a privilege; and
5. Is a tax imposed by a local jurisdiction, whether within or without the state of
Washington, and not by a country, state, province, or any other nonlocal jurisdiction
above the county level.
R. Engaging in Business.
1. The term “engaging in business” means commencing, conducting, or continuing
in business, and also the exercise of corporate or franchise powers, as well as
liquidating a business when the liquidators thereof hold themselves out to the public
as conducting such business.
2. This subsection sets forth examples of activities that constitute engaging in
business in the city, and establishes safe harbors for certain of those activities so
that a person who meets the criteria may engage in de minimis business activities in
the city without having to register and obtain a business license or pay city business
and occupation taxes. The activities listed in this section are illustrative only and are
not intended to narrow the definition of “engaging in business” in subsection (R)(1)
of this section. If an activity is not listed, whether it constitutes engaging in business
in the city shall be determined by considering all the facts and circumstances and
applicable law.
3. Without being all inclusive, any one of the following activities conducted within
the city by a person, or its employee, agent, representative, independent contractor,
broker or another acting on its behalf constitutes engaging in business and requires
a person to register and obtain a business license:
a. Owning, renting, leasing, maintaining, or having the right to use, or using,
tangible personal property, intangible personal property, or real property
permanently or temporarily located in the city.
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b. Owning, renting, leasing, using, or maintaining an office, place of business,
or other establishment in the city.
c. Soliciting sales.
d. Making repairs or providing maintenance or service to real or tangible
personal property, including warranty work and property maintenance.
e. Providing technical assistance or service, including quality control, product
inspections, warranty work, or similar services on or in connection with tangible
personal property sold by the person or on its behalf.
f. Installing, constructing, or supervising installation or construction of real or
tangible personal property.
g. Soliciting, negotiating, or approving franchise, license, or other similar
agreements.
h. Collecting current or delinquent accounts.
i. Picking up and transporting tangible personal property, solid waste,
construction debris, or excavated materials.
j. Providing disinfecting and pest control services, employment and labor pool
services, home nursing care, janitorial services, appraising, landscape
architectural services, security system services, surveying, and real estate
services including the listing of homes and managing real property.
k. Rendering professional services such as those provided by accountants,
architects, attorneys, auctioneers, consultants, engineers, professional athletes,
barbers, baseball clubs and other sports organizations, chemists, psychologists,
court reporters, dentists, doctors, detectives, laboratory operators, teachers,
veterinarians.
l. Meeting with customers or potential customers, even when no sales or
orders are solicited at the meetings.
m. Training or recruiting agents, representatives, independent contractors,
brokers or others, domiciled or operating on a job in the city, acting on its behalf,
or for customers or potential customers.
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n. Investigating, resolving, or otherwise assisting in resolving customer
complaints.
o. In-store stocking or manipulating products or goods, sold to and owned by a
customer, regardless of where sale and delivery of the goods took place.
p. Delivering goods in vehicles owned, rented, leased, used, or maintained by
the person or another person acting on its behalf.
4. If a person, or their employee, agent, representative, independent contractor,
broker or another acting on the person’s behalf, engages in no other activities in or
with the city but the following, it need not register and obtain a business license and
pay tax:
a. Meeting with suppliers of goods and services as a customer.
b. Meeting with government representatives in their official capacity, other than
those performing contracting or purchasing functions.
c. Attending meetings, such as board meetings, retreats, seminars, and
conferences, or other meetings wherein the person does not provide training in
connection with tangible personal property sold by the person or on its behalf.
This provision does not apply to any board of directors member or attendee
engaging in business such as a member of a board of directors who attends a
board meeting.
d. Renting tangible or intangible property as a customer when the property is
not used in the city.
e. Attending, but not participating in, a “trade show” or “multiple vendor
events.” Persons participating at a trade show shall review Chapter 2.23 ACC,
Special Event Permits.
f. Conducting advertising through the mail.
g. Soliciting sales by phone from a location outside the city.
5. A seller located outside the city merely delivering goods into the city by means
of common carrier is not required to register and obtain a business license;
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provided, that it engages in no other business activities in the city. Such activities do
not include those in subsection (R)(4) of this section.
6. The city expressly intends that engaging in business include any activity
sufficient to establish nexus for purposes of applying the tax under the law and the
Constitutions of the United States and the state of Washington. Nexus is presumed
to continue as long as the taxpayer benefits from the activity that constituted the
original nexus-generating contact or subsequent contacts.
S. “Extracting” is the activity engaged in by an extractor and is reportable under the
extracting classification.
T. Extractor.
1. “Extractor” means every person who from the person’s own land or from the
land of another under a right or license granted by lease or contract, either directly
or by contracting with others for the necessary labor or mechanical services, for sale
or for commercial or industrial use, mines, quarries, takes or produces coal, oil,
natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product;
or fells, cuts or takes timber, Christmas trees other than plantation Christmas trees,
or other natural products; or takes fish, shellfish, or other sea or inland water foods
or products.
2. “Extractor” does not include persons performing under contract the necessary
labor or mechanical services for others; persons meeting the definition of “farmer”
under RCW 82.04.213, or persons producing cannabis.
3. When an “extractor” is also a “manufacturer” under this chapter, the principles of
WAC 458-20-135 (as now enacted or hereafter amended) shall apply.
U. “Extractor for hire” means a person who performs under contract necessary labor or
mechanical services for an extractor.
V. “Gross income of the business” means the value proceeding or accruing by reason
of the transaction of the business engaged in and includes gross proceeds of sales,
compensation for the rendition of services, gains realized from trading in stocks, bonds,
or other evidences of indebtedness, interest, discount, rents, royalties, fees,
commissions, dividends, and other emoluments however designated, all without any
deduction on account of the cost of tangible property sold, the cost of materials used,
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labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever
paid or accrued and without any deduction on account of losses.
W. “Gross proceeds of sales” means the value proceeding or accruing from the sale of
tangible personal property, digital goods, digital codes, digital automated services or for
other services rendered, without any deduction on account of the cost of property sold,
the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or
any other expense whatsoever paid or accrued and without any deduction on account of
losses.
X. “Gross receipts” has the same meaning as gross income.
Y. “Hospital” means any institution, place, building, or agency which provides
accommodations, facilities and services over a continuous period of 24 hours or more,
for observation, diagnosis, or care, of two or more individuals not related to the operator
who are suffering from illness, injury, deformity, or abnormality, or from any other
condition for which obstetrical, medical, or surgical services would be appropriate for
care or diagnosis. “Hospital” as used in this chapter does not include hotels, or similar
places furnishing only food and lodging, or simply domiciliary care; nor does it include
clinics, or physician’s offices where patients are not regularly kept as bed patients for 24
hours or more; nor does it include nursing homes, as defined and which come within the
scope of Chapter 18.51 RCW; nor does it include birthing centers, which come within
the scope of Chapter 18.46 RCW; nor does it include psychiatric hospitals, which come
within the scope of Chapter 71.12 RCW; nor any other hospital or institution specifically
intended for use in the diagnosis and care of those suffering from mental illness,
intellectual disability, convulsive disorders, or other abnormal mental condition.
Furthermore, nothing in this chapter or the rules adopted pursuant thereto shall be
construed as authorizing the supervision, regulation, or control of the remedial care or
treatment of residents or patients in any hospital conducted for those who rely primarily
upon treatment by prayer or spiritual means in accordance with the creed or tenets of
any well recognized church or religious denominations.
Z. International Investment Management Services.
1. “International investment management services” includes investment research,
investment consulting, fund administration, fund distribution, investment
transactions, or related investment services provided to persons for or on behalf of a
collective investment fund. A person is considered to be engaged in providing
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international investment management services if such person is providing
investment management services and/or is a member of an affiliated group (as
defined by RCW 82.04.293(2)(b)) primarily in the business of providing investment
management services to collective investment funds, and at least 15 percent of the
gross income of the person and/or affiliated group is derived from providing
investment management services to any of the following:
a. Persons or collective investment funds residing outside the United States; or
b. Collective investment funds with at least 50 percent of their investment
assets located or issued outside the United States.
2. For the purpose of this section, “collective investment fund” includes:
a. A mutual fund or other regulated investment company as defined in 26 USC
§851(a), as now enacted or hereafter amended;
b. An investment company, as defined in 15 USC § 80(a)(3) (as now enacted
or hereafter amended), as well as any entity that would be an investment
company for this purpose but for the exemptions contained in 15 USC
§ 80(a)(3);
c. An employee benefit plan, which includes any plan, trust, commingled
employee benefit trust, or custodial arrangement that is subject to 29 USC
§1001 et seq., or that is described in 26 USC §§125, 401, 403, 408, 457,
501(c)(9), and 501(c)(17) through (24), or a similar plan maintained by a state or
local government, or a plan trust, or custodial arrangement established to self-
insure benefits required by federal, state, or local law;
d. A fund maintained by a tax exempt organization, as defined in 26 USC
§501(c)(3) for operating, quasi-endowment, or endowment purposes;
e. Funds that are established for the benefit of such tax exempt organizations,
such as charitable remainder trusts, charitable lead trusts, charitable annuity
trusts, or other similar trusts; or
f. Collective investment funds similar to those described in subsections
(Z)(2)(a) through (Z)(2)(e) of this section created under the laws of a foreign
jurisdiction.
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AA. “Liquor” shall have the same meaning as RCW 66.44.010.
BB. “Lottery commissions” are commissions received from sales of lottery and scratch
tickets to a consumer.
CC. “Manufacturing” means the activity conducted by a manufacturer and is reported
under the manufacturing classification.
DD. “Manufacturer,” “To Manufacture.”
1. “Manufacturer” means every person who, either directly or by contracting with
others for the necessary labor or mechanical services, manufactures for sale or for
commercial or industrial use from the person’s own materials or ingredients any
products. When the owner of equipment or facilities furnishes, or sells to the
customer prior to manufacture, materials or ingredients equal to less than 20
percent of the total value of all materials or ingredients that become a part of the
finished product, the owner of the equipment or facilities will be deemed to be a
processor for hire, and not a manufacturer. A business not located in this city that is
the owner of materials or ingredients processed for it in this city by a processor for
hire shall be deemed to be engaged in business as a manufacturer in this city.
2. “To manufacture” means all activities of a commercial or industrial nature
wherein labor or skill is applied, by hand or machinery, to materials or ingredients so
that as a result thereof a new, different or useful product is produced for sale or
commercial or industrial use, and shall include:
a. The production of special made or custom made articles;
b. The production of dental appliances, devices, restorations, substitutes, or
other dental laboratory products by a dental laboratory or dental technician;
c. Crushing and/or blending of rock, sand, stone, gravel, or ore; and
d. The producing of articles for sale, or for commercial or industrial use from
raw materials or prepared materials by giving such materials, articles, and
substances of trade or commerce new forms, qualities, properties or
combinations including, but not limited to, such activities as making, fabricating,
processing, refining, mixing, slaughtering, packing, aging, curing, mild curing,
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preserving, canning, and the preparing and freezing of fresh fruits and
vegetables.
“To manufacture” shall not include the production of digital goods or the
production of computer software if the computer software is delivered from the
seller to the purchaser by means other than tangible storage media, including
the delivery by use of a tangible storage media where the tangible storage
media is not physically transferred to the purchaser.
EE. Newspaper, Magazine, Periodical.
1. “Newspaper” means a publication offered for sale regularly at stated intervals at
least once per week and printed on newsprint in tabloid or broadsheet format folded
loosely together without stapling, glue, or any other binding of any kind.
2. “Magazine” or “periodical” means any printed publication, other than a
newspaper, issued and offered for sale regularly at stated intervals at least once
every three months, including any supplement or special edition of the publication.
Any publication meeting this definition qualifies regardless of its content.
FF. “Office” or “place of business” means a fixed location or permanent facility where
the regular business of the person is conducted and which is either owned by the
person or over which the person exercises legal dominion and control. The regular
business of the person is presumed conducted at a location:
1. Whose address the person uses as their business mailing address; and
2. Where the place of primary use is shown on a telephone billing or a location
containing a telephone line, listed in a public telephone directory or other similar
publication, under the business name; and
3. Where the person holds themselves out to the general public as conducting
regular business through signage or other means; and
4. Where the person is required to obtain any appropriate state and local business
license or registration unless the person is exempted by law from such requirement.
A vehicle such as a pick-up, van, truck, boat or other motor vehicle is not an office or
place of business. A post office box is not an office or place of business.
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If a person has an office or place of business, the person’s home is not an office or
place of business unless it meets the criteria for office or place of business above. If a
person has no office or place of business, the person’s home or apartment within the
city will be deemed the place of business.
GG. “Option to purchase” shall mean a continuing offer or contract by which owner
stipulates with another that the latter shall have the right to buy property at a fixed dollar
price within a certain time. An agreement is only an option when no obligation rests on
the potential buyer to make any payment except such as may be agreed upon by the
parties as consideration to support the option until the potential buyer has made up their
mind within a time specified to complete the purchase. The use of the term “fair market
value” or any other like term shall not be substituted for a fixed dollar price in
determining if an “option to purchase” exists.
HH. “Person” means any individual, receiver, administrator, executor, assignee,
trustee in bankruptcy, trust, estate, firm, co-partnership, joint venture, club, company,
joint stock company, business trust, municipal corporation, political subdivision of the
state of Washington, corporation, limited liability company, association, society, or any
group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or
otherwise and the United States or any instrumentality thereof.
II. “Processing for hire” means the performance of labor and mechanical services upon
materials or ingredients belonging to others so that as a result a new, different or useful
product is produced for sale, or commercial or industrial use. A processor for hire is any
person who would be a manufacturer if that person were performing the labor and
mechanical services upon that person’s own materials or ingredients. If a person
furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to
20 percent or more of the total value of all materials or ingredients that become a part of
the finished product the person will be deemed to be a manufacturer and not a
processor for hire.
JJ. “Product” means tangible personal property, including articles, substances, or
commodities created, brought forth, extracted, or manufactured by human or
mechanical effort. “By-product” means any additional product, other than the principal or
intended product, which results from extracting or manufacturing activities and which
has a market value, without regard to whether or not such additional product was an
expected or intended result of the extracting or manufacturing activities.
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KK. “Retailing” means the activity of engaging in making sales at retail and is reported
under the retailing classification.
LL. “Retail floor space” means the area where items are on display for sale to the
public, together with the walkways and open spaces associated with such display.
MM. “Retail service” shall include the sale of or charge made for personal, business, or
professional services including amounts designated as interest, rents, fees, admission,
and other service emoluments however designated, received by persons engaging in
the following business activities:
1. Amusement and recreation services including but not limited to golf, pool,
billiards, skating, bowling, swimming, bungee jumping, ski lifts and tows, basketball,
racquetball, handball, squash, tennis, batting cages, day trips for sightseeing
purposes, and others, when provided to consumers. “Amusement and recreation
services” also include the provision of related facilities such as basketball courts,
tennis courts, handball courts, swimming pools, and charges made for providing the
opportunity to dance. The term “amusement and recreation services” does not
include instructional lessons to learn a particular activity such as tennis lessons,
swimming lessons, or archery lessons;
2. Abstract, title insurance, and escrow services;
3. Credit bureau services;
4. Automobile parking and storage garage services;
5. Landscape maintenance and horticultural services but excluding (a) horticultural
services provided to farmers and (b) pruning, trimming, repairing, removing, and
clearing of trees and brush near electric transmission or distribution lines or
equipment, if performed by or at the direction of an electric utility;
6. Service charges associated with tickets to professional sporting events; and
7. The following personal services: physical fitness services, tanning salon
services, tattoo parlor services, steam bath services, Turkish bath services, escort
services, and dating services.
8. The term shall also include the renting or leasing of tangible personal property to
consumers and the rental of equipment with an operator.
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NN. “Royalties” means compensation for the use of intangible property, such as
copyrights, patents, licenses, franchises, trademarks, trade names, and similar items.
OO. Sale, Casual or Isolated Sale.
1. “Sale” means any transfer of the ownership of, title to, or possession of, property
for a valuable consideration and includes any activity classified as a “sale at retail,”
“retail sale,” or “retail service.” It includes renting or leasing, conditional sale
contracts, leases with option to purchase, and any contract under which possession
of the property is given to the purchaser but title is retained by the vendor as
security for the payment of the purchase price. It also includes the furnishing of
food, drink, or meals for compensation whether consumed upon the premises or
not.
2. “Casual or isolated sale” means a sale made by a person who is not engaged in
the business of selling the type of property involved on a routine or continuous
basis.
PP. Sale at Retail, Retail Sale.
1. “Sale at retail” or “retail sale” means every sale of tangible personal property
(including articles produced, fabricated, or imprinted) to all persons irrespective of
the nature of their business and including, among others, without limiting the scope
hereof, persons who install, repair, clean, alter, improve, construct, or decorate real
or personal property of or for consumers, other than a sale to a person who
presents a resale certificate under RCW 82.04.470, and who:
a. Purchases for the purpose of resale as tangible personal property in the
regular course of business without intervening use by such person; or
b. Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates
real or personal property of or for consumers, if such tangible personal property
becomes an ingredient or component of such real or personal property without
intervening use by such person; or
c. Purchases for the purpose of consuming the property purchased in
producing for sale a new article of tangible personal property or substance, of
which such property becomes an ingredient or component or is a chemical used
in processing, when the primary purpose of such chemical is to create a
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chemical reaction directly through contact with an ingredient of a new article
being produced for sale; or
d. Purchases for the purpose of consuming the property purchased in
producing ferrosilicon which is subsequently used in producing magnesium for
sale, if the primary purpose of such property is to create a chemical reaction
directly through contact with an ingredient of ferrosilicon; or
e. Purchases for the purpose of providing the property to consumers as part of
competitive telephone service, as defined in RCW 82.04.065. The term shall
include every sale of tangible personal property which is used or consumed or
to be used or consumed in the performance of any activity classified as a “sale
at retail” or “retail sale” even though such property is resold or utilized as
provided in subsections (PP)(1)(a) through (PP)(1)(e) of this section following
such use.
f. Purchases for the purpose of satisfying the person’s obligations under an
extended warranty as defined in subsection (PP)(7) of this section, if such
tangible personal property replaces or becomes an ingredient or component of
property covered by the extended warranty without intervening use by such
person.
2. “Sale at retail” or “retail sale” also means every sale of tangible personal
property to persons engaged in any business activity which is taxable under ACC
3.53.040(A)(7).
3. “Sale at retail” or “retail sale” shall include the sale of or charge made for
tangible personal property consumed and/or for labor and services rendered in
respect to the following:
a. The installing, repairing, cleaning, altering, imprinting, or improving of
tangible personal property of or for consumers, including charges made for the
mere use of facilities in respect thereto, but excluding charges made for the use
of coin-operated laundry facilities when such facilities are situated in an
apartment house, rooming house, or mobile home park for the exclusive use of
tenants thereof, and also excluding sales of laundry service to nonprofit health
care facilities, and excluding services rendered in respect to live animals, birds
and insects;
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b. The constructing, repairing, decorating, or improving of new or existing
buildings or other structures under, upon, or above real property of or for
consumers, including the installing or attaching of any article of tangible
personal property therein or thereto, whether or not such personal property
becomes a part of the realty by virtue of installation, and shall also include the
sale of services or charges made for the clearing of land and the moving of
earth excepting the mere leveling of land used in commercial farming or
agriculture;
c. The charge for labor and services rendered in respect to constructing,
repairing, or improving any structure upon, above, or under any real property
owned by an owner who conveys the property by title, possession, or any other
means to the person performing such construction, repair, or improvement for
the purpose of performing such construction, repair, or improvement and the
property is then reconveyed by title, possession, or any other means to the
original owner;
d. The sale of or charge made for labor and services rendered in respect to the
cleaning, fumigating, razing or moving of existing buildings or structures, but
shall not include the charge made for janitorial services; and for purposes of this
section the term “janitorial services” shall mean those cleaning and caretaking
services ordinarily performed by commercial janitor service businesses
including, but not limited to, wall and window washing, floor cleaning and
waxing, and the cleaning in place of rugs, drapes and upholstery. The term
“janitorial services” does not include painting, papering, repairing, furnace or
septic tank cleaning, snow removal or sandblasting;
e. The sale of or charge made for labor and services rendered in respect to
automobile towing and similar automotive transportation services, but not in
respect to those required to report and pay taxes under Chapter 82.16 RCW;
f. The sale of and charge made for the furnishing of lodging and all other
services, except telephone business and cable service, by a hotel, rooming
house, tourist court, motel, trailer camp, and the granting of any similar license
to use real property, as distinguished from the renting or leasing of real
property, and it shall be presumed that the occupancy of real property for a
continuous period of one month or more constitutes a rental or lease of real
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property and not a mere license to use or enjoy the same. For the purposes of
this subsection, it shall be presumed that the sale of and charge made for the
furnishing of lodging for a continuous period of one month or more to a person
is a rental or lease of real property and not a mere license to enjoy the same;
g. The installing, repairing, altering, or improving of digital goods for
consumers;
h. The sale of or charge made for tangible personal property, labor and
services to persons taxable under subsections (PP)(3)(a) through (PP)(3)(g) of
this section when such sales or charges are for property, labor and services
which are used or consumed in whole or in part by such persons in the
performance of any activity defined as a “sale at retail” or “retail sale” even
though such property, labor and services may be resold after such use or
consumption. Nothing contained in this subsection shall be construed to modify
subsection (PP)(1) of this section and nothing contained in subsection (PP)(1)
of this section shall be construed to modify this subsection.
4. “Sale at retail” or “retail sale” shall also include the providing of competitive
telephone service to consumers.
5. “Sale at retail” or “retail sale” shall also include the sale of prewritten software
other than a sale to a person who presents a resale certificate under RCW
82.04.470, regardless of the method of delivery to the end user.
a. For purposes of this subsection (PP)(5), the sale of prewritten computer
software includes the sale of or charge made for a key or an enabling or
activation code, where the key or code is required to activate prewritten
computer software and put the software into use. There is no separate sale of
the key or code from the prewritten computer software, regardless of how the
sale may be characterized by the vendor or by the purchaser.
b. The term “sale at retail” or “retail sale” does not include the sale of or charge
made for custom software; or the customization of prewritten software.
c. The term also includes the charge made to consumers for the right to
access and use prewritten computer software, where possession of the
software is maintained by the seller or a third party, regardless of whether the
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charge for the service is on a per use, per user, per license, subscription, or
some other basis.
i. The service described in this subsection (PP)(5)(c) includes the right to
access and use prewritten software to perform data processing.
ii. For purposes of subsection (PP)(5)(c)(i) of this section “data processing”
means the systematic performance of operations on data to extract the
required information in an appropriate form or to convert the data to usable
information. Data processing includes check processing, image processing,
form processing, survey processing, payroll processing, claim processing,
and similar activities.
6. “Sale at retail” or “retail sale” shall also include the sale of or charge made for
labor and services rendered in respect to the building, repairing, or improving of any
street, place, road, highway, easement, right-of-way, mass public transportation
terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal
corporation or political subdivision of the state, the state of Washington, or by the
United States and which is used or to be used primarily for foot or vehicular traffic
including mass transportation vehicles of any kind (public road construction).
7. “Sale at retail” or “retail sale” shall also include the sale of or charge made for an
extended warranty to a consumer. For purposes of this subsection, “extended
warranty” means an agreement for a specified duration to perform the replacement
or repair of tangible personal property at no additional charge or a reduced charge
for tangible personal property, labor, or both, or to provide indemnification for the
replacement or repair of tangible personal property, based on the occurrence of
specified events. The term “extended warranty” does not include an agreement,
otherwise meeting the definition of “extended warranty” in this subsection, if no
separate charge is made for the agreement and the value of the agreement is
included in the sales price of the tangible personal property covered by the
agreement.
8. “Sale at retail” or“ retail sale” shall also include the sale of or charge made for
labor and services rendered in respect to the constructing, repairing, decorating, or
improving of new or existing buildings or other structures under, upon, or above real
property of or for the United States, any instrumentality thereof, or a county or city
housing authority created pursuant to Chapter 35.82 RCW, including the installing
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or attaching of any article of tangible personal property therein or thereto, whether
or not such personal property becomes a part of the realty by virtue of installation
(government contracting).
9. “Sale at retail” or “retail sale” shall not include the sale of services or charges
made for the clearing of land and the moving of earth of or for the United States,
any instrumentality thereof, or a county or city housing authority. Nor shall the term
include the sale of services or charges made for cleaning up for the United States,
or its instrumentalities, radioactive waste and other by-products of weapons
production and nuclear research and development. (This should be reported under
the service and other classification as defined under ACC 3.53.040(A)(7).)
10. “Sale at retail” or “retail sale” shall not include the sale of or charge made for
labor and services rendered for environmental remedial action. (This should be
reported under the service and other classification as defined under ACC
3.53.040(A)(7).)
11. “Sale at retail” or “retail sale” shall also include the following sales to
consumers of digital goods, digital codes, and digital automated services:
a. Sales in which the seller has granted the purchaser the right of permanent
use;
b. Sales in which the seller has granted the purchaser a right of use that is less
than permanent;
c. Sales in which the purchaser is not obligated to make continued payment as
a condition of the sale; and
d. Sales in which the purchaser is obligated to make continued payment as a
condition of the sale.
A retail sale of digital goods, digital codes, or digital automated services under
this subsection (PP)(11) includes any services provided by the seller exclusively
in connection with the digital goods, digital codes, or digital automated services,
whether or not a separate charge is made for such services.
For purposes of this subsection, “permanent” means perpetual or for an
indefinite or unspecified length of time. A right of permanent use is presumed to
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have been granted unless the agreement between the seller and the purchaser
specifies or the circumstances surrounding the transaction suggest or indicate
that the right to use terminates on the occurrence of a condition subsequent.
12. “Sale at retail” or “retail sale” shall also include the installing, repairing, altering,
or improving of digital goods for consumers.
QQ. “Sale at wholesale” or “wholesale sale” means any sale of tangible personal
property, digital goods, digital codes, digital automated services, prewritten computer
software, or services described in subsection (PP)(5)(b) of this section, which is not a
retail sale, and any charge made for labor and services rendered for persons who are
not consumers, in respect to real or personal property and retail services, if such charge
is expressly defined as a retail sale or retail service when rendered to or for consumers.
Sale at wholesale also includes the sale of telephone business to another
telecommunications company as defined in RCW 80.04.010 for the purpose of resale,
as contemplated by RCW 35.21.715.
RR. “Service” means any sale or charge made for personal, business or professional
service, including amounts designated as rents, fees, or admissions, not otherwise
included within any other tax classification defined herein; provided, that the term
“service” excludes retail or wholesale services.
SS. Software, Prewritten Software, Custom Software, Customization of Canned
Software, Master Copies, Retained Rights.
1. “Prewritten software” or “canned software” means computer software, including
prewritten upgrades, that is not designed and developed by the author or other
creator to the specifications of a specific purchaser. The combining of two or more
prewritten computer software programs or prewritten portions thereof does not
cause the combination to be other than prewritten computer software. Prewritten
computer software includes software designed and developed by the author or other
creator to the specifications of a specific purchaser when it is sold to a person other
than such purchaser. Where a person modifies or enhances computer software of
which such person is not the author or creator, the person shall be deemed to be
the author or creator only of the person’s modifications or enhancements. Prewritten
computer software or a prewritten portion thereof that is modified or enhanced to
any degree, where such modification or enhancement is designed and developed to
the specifications of a specific purchaser, remains prewritten computer software;
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however, where there is a reasonable, separately stated charge or an invoice or
other statement of the price given to the purchaser for the modification or
enhancement, the modification or enhancement shall not constitute prewritten
computer software.
2. “Custom software” means software created for a single person.
3. “Customization of canned software” means any alteration, modification, or
development of applications using or incorporating canned software to specific
individualized requirements of a single person. Customization of canned software
includes individualized configuration of software to work with other software and
computer hardware but does not include routine installation. Customization of
canned software does not change the underlying character or taxability of the
original canned software.
4. “Master copies” of software means copies of software from which a software
developer, author, inventor, publisher, licensor, sublicensor, or distributor makes
copies for sale or license. The software encoded on a master copy and the media
upon which the software resides are both ingredients of the master copy.
5. “Retained rights” means any and all rights, including intellectual property rights
such as those rights arising from copyrights, patents, and trade secret laws, that are
owned or are held under contract or license by a software developer, author,
inventor, publisher, licensor, sublicensor, or distributor.
6. “Software” means any information, program, or routine, or any set of one or
more programs, routines, or collections of information, used, or intended for use, to
convey information that causes one or more computers or pieces of computer-
related peripheral equipment, or any combination thereof, to perform a task or set of
tasks. “Software” includes the associated documentation, materials, or ingredients,
regardless of the media upon which that documentation is provided, that describe
the code and its use, operation, and maintenance and that typically are delivered
with the code to the consumer. All software is classified as either canned or custom.
TT. “Taxpayer” means any “person,” as herein defined, required to have a business
license under this chapter or liable for the collection of any tax or fee under this chapter,
or who engages in any business or who performs any act for which a tax or fee is
imposed by this chapter.
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UU. “Tuition fee” includes library, laboratory, health service, and other special fees,
and amounts charged for room and board by an educational institution when the
property or service for which such charges are made is furnished exclusively to the
students or faculty of such institution. “Educational institution,” as used in this section,
means only those institutions created or generally accredited as such by the state and
includes educational programs that such educational institution cosponsors with a
nonprofit organization, as defined by 26 USC §501(c)(3), as hereafter amended, if such
educational institution grants college credit for coursework successfully completed
through the educational program, or an approved branch campus of a foreign degree-
granting institution in compliance with Chapter 28B.90 RCW, and in accordance with
RCW 82.04.4332 or defined as a degree-granting institution under RCW 28B.85.010(3)
and accredited by an accrediting association recognized by the United States Secretary
of Education, and offering to students an educational program of a general academic
nature or those institutions which are not operated for profit and which are privately
endowed under a deed of trust to offer instruction in trade, industry, and agriculture, but
not including specialty schools, business colleges, other trade schools, or similar
institutions.
VV. “Value proceeding or accruing” means the consideration, whether money, credits,
rights, or other property expressed in terms of money, a person is entitled to receive or
which is actually received or accrued. The term shall be applied, in each case, on a
cash receipts or accrual basis according to which method of accounting is regularly
employed in keeping the books of the taxpayer.
WW. Value of Products.
1. The value of products, including by-products, extracted or manufactured, shall
be determined by the gross proceeds derived from the sale thereof whether such
sale is at wholesale or at retail, to which shall be added all subsidies and bonuses
received from the purchaser or from any other person with respect to the extraction,
manufacture, or sale of such products or by-products by the seller.
2. Where such products, including by-products, are extracted or manufactured for
commercial or industrial use; and where such products, including by-products, are
shipped, transported or transferred out of the city, or to another person, without prior
sale or are sold under circumstances such that the gross proceeds from the sale are
not indicative of the true value of the subject matter of the sale; the value shall
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correspond as nearly as possible to the gross proceeds from sales in this state of
similar products of like quality and character, and in similar quantities by other
taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the
purchaser or by any third person with respect to the extraction, manufacture, or sale
of such products. In the absence of sales of similar products as a guide to value,
such value may be determined upon a cost basis. In such cases, there shall be
included every item of cost attributable to the particular article or article extracted or
manufactured, including direct and indirect overhead costs. The director may
prescribe rules for the purpose of ascertaining such values.
3. Notwithstanding subsection (WW)(2) of this section, the value of a product
manufactured or produced for purposes of serving as a prototype for the
development of a new or improved product shall correspond to (a) the retail selling
price of such new or improved product when first offered for sale; or (b) the value of
materials incorporated into the prototype in cases in which the new or improved
product is not offered for sale.
XX. “Warehouse” means every structure or any part thereof that is used for the storage
of merchandise, goods, wares, commodities, inventory, materials, equipment or other
items (whether or not for compensation) in furtherance of engaging in business,
including but not limited to wherein facilities are offered for the storage of tangible
personal property. It includes the following:
1. “Storage warehouse” means a building or structure, or any part thereof, in which
goods, wares, or merchandise are received for storagestored whether or not for
compensation, except field warehouses, fruit warehouses, fruit packing plants,
unroasted coffee bean warehouses, warehouses licensed under Chapter 22.09
RCW (which are agricultural commodities warehouses), public garages storing
automobiles, railroad freight sheds, docks and wharves. , and “self-storage” or
“mini-storage” facilities whereby customers have direct access to individual storage
areas by separate access.
2. “Cold storage warehouse” means a storage warehouse used to store fresh
and/or frozen perishable fruits or vegetables, meat, seafood, dairy products, or fowl,
or any combination thereof, at a desired temperature to maintain the quality of the
product for orderly marketing. This term does not include freezer space or frozen
food lockers.
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3. “Automobile storage garage” means any off-street building, structure, or area
where vehicles are parked or stored, for any period of time, for a charge.
YY. “Warehouse, outdoor” means an area that is outdoors and is primarily used for the
storage of merchandise, goods, wares, commodities, inventory, materials, equipment or
other items (whether or not for compensation) in furtherance of engaging in business.
ZZ. “Wholesaling” means engaging in the activity of making sales at wholesale, and is
reported under the wholesaling classification.
3.53.040 Imposition of the tax – Tax or fee levied.
Except as provided in subsection C of this section, effective January 1, 2022, at 12:01
a.m. there is hereby levied upon and shall be collected from every person a tax for the
act or privilege of engaging in business activities within the city of Auburn, whether the
person’s office or place of business be within or without the city. The tax shall be in
amounts to be determined by application of rates against gross proceeds of sale, gross
income of business, or value of products, including by-products, as the case may be, as
follows:
A. Gross Receipts Tax.
1. Upon every person engaging within the city in business as an extractor; as to
such persons, the amount of the tax with respect to such business shall be equal to
the value of the products, including by-products, extracted within the city for sale or
for commercial or industrial use, multiplied by the rate of 0.100 of one percent
(0.001). The measure of the tax is the value of the products, including by-products,
so extracted, regardless of the place of sale or the fact that deliveries may be made
to points outside the city.
2. Upon every person engaging within the city in business as a manufacturer; as to
such persons, the amount of the tax with respect to such business shall be equal to
the value of the products, including by-products, manufactured within the city,
multiplied by the rate of 0.100 of one percent (0.001). The measure of the tax is the
value of the products, including by-products, so manufactured, regardless of the
place of sale or the fact that deliveries may be made to points outside the city.
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3. Upon every person engaging within the city in the business of making sales at
wholesale; as to such persons, the amount of tax with respect to such business
shall be equal to the gross proceeds of such sales of the business multiplied by the
rate of 0.180 of one percent (0.0018).
4. Upon every person engaging within the city in the business of making sales at
retail; as to such persons, the amount of tax with respect to such business shall be
equal to the gross proceeds of such sales of the business multiplied by the rate of
0.050 of one percent (0.0005).
5. Upon every person engaging within the city in the business of (a) printing, (b)
both printing and publishing newspapers, magazines, periodicals, books, music, and
other printed items, (c) publishing newspapers, magazines and periodicals, (d)
extracting for hire, and (e) processing for hire; as to such persons, the amount of tax
on such business shall be equal to the gross income of the business multiplied by
the rate of 0.100 of one percent (0.001).
6. Upon every person engaging within the city in the business of making sales of
retail services; as to such persons, the amount of tax with respect to such business
shall be equal to the gross proceeds of sales multiplied by the rate of 0.150 of one
percent (0.0015).
7. Upon every other person engaging within the city in any business activity other
than or in addition to those enumerated in the above subsections; such persons
shall report gross receipts under the “service and other tax” classification, and the
amount of tax on account of such activities shall be equal to the gross income of the
business multiplied by the rate of 0.100 of one percent (0.001). This classification
includes (among others, without limiting its scope and whether or not title to material
used in the performance of such business passes to another by accession, merger
or other than by outright sale): persons engaged in the business of developing or
producing custom software or of customizing canned software, persons producing
royalties or commissions, and persons engaged in the business of rendering any
type of service which does not constitute a sale at retail, a sale at wholesale, or a
retail service.
8. Lottery commissions are commissions received from the sales of lottery and
scratch tickets to a consumer. Taxpayers must report commissions received from
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such sales on the excise tax return under service and other B&O tax classification.
Lottery payouts do not qualifty for the payouts deduction.
9. Persons otherwise subject to the “service and other tax” classification who
engage in business in multiple jurisdictions shall report their service income under
the “service and other apportionment” tax classification, and shall allocate their
gross receipts in accordance with ACC 3.53.080 by using the city’s service income
apportionment supplemental form.
B. Square Footage Tax. This subsection B applies to any business that uses
warehouse space within the city in the course of or in the furtherance of engaging in
businessits business activities, regardless of any business activity tax classifications in
subsection A of this section.
1. Upon every person who leases, owns, occupies, or otherwise maintains a
warehouse or outdoor warehouse within the city for purposes of engaging in
business activities in the city there shall be a tax measured by the number of square
feet of business warehouse floor space or outdoor warehouse space. The amount
of the tax shall be equal to $0.10 for each quarterly period of a calendar year for
each square foot of warehouse or outdoor warehouse floor space that is leased,
owned, occupied, or otherwise maintained within the city during the reporting period,
calculated to the nearest square foot.
2. For purposes of this subsection, “warehouse” means every structure or any part
thereof that is used for the storage of merchandise, goods, wares, commodities,
inventory, materials, equipment or other items (whether or not for compensation) in
furtherance of engaging in business, including but not limited to wherein facilities
are offered for the storage of tangible personal property. It includes “storage
warehouses,” “cold storage warehouses” and “automobile storage garage” as
defined in ACC 3.53.020(XX).
3. For purposes of this subsection, “outdoor warehouse” means an area that is
outdoors and primarily used for the storage of merchandise, goods, wares,
commodities, inventory, materials, equipment or other items (whether or not for
compensation) in furtherance of engaging in business.
4. For purposes of this subsection, the square footage of a business warehouse
shall be computed by measuring to the inside finish of permanent outer building
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walls and shall include space used by columns and projections necessary to the
building. Square footage shall not include stairs, elevator shafts, flues, pipe shafts,
vertical ducts, heating or ventilation shafts, janitor closets, and electrical or utility
closets. Outdoor warehouse space is measured based on the entire space used for
outdoor warehousing and is not measured solely based on the size of the goods,
wares, merchandise, or commodities that are being stored.
5. For purposes of this subsection, outdoor warehouse space is measured based
on the entire space used for outdoor warehousing and is not measured solely based
on the size of the goods, wares, merchandise, or commodities that are being stored.
Tthe square footage of an outdoor warehouse shall only include those areas used
and/or intended to be used for the storage of goods, wares, merchandise,
commodities, inventory, materials, equipment, or other items (whether or not for
compensation) in furtherance of engaging in business.
Square footage shall not include: areas used only for employee, customer, or visitor
parking; dock high loading areas; buildings or areas used only for retail floor space
or rentals to consumers; landscaped areas; storm water facilities; maneuvering
areas or drive aisles; areas used only for garbage or recycling pickup; rights-of-way;
or other areas clearly not used for the storage of items described in this subsection.
6. Persons with more than one business warehouse or outdoor warehouse within
the city must include all business warehouse floor space and outdoor warehouse
space for all locations within the city. When a person rents space to another person,
the person occupying the rental space is responsible for the square footage
business tax on that rental space. Space rented for the storage of goods in a
warehouse or outdoor warehouse where no walls or other barriers separate the
goods, and where the exclusive right of possession in the space is not held by the
person to whom the space is rented, shall be included in the business warehouse
floor space of the person that operates the business warehouse, and not by the
person renting the warehouse space.
7. If the square footage tax imposed in this subsection B is equal to or less than
the gross receipts tax imposed in subsection A of this section, no square footage tax
will be due. If the square footage tax imposed in this subsection B exceeds the
gross receipts tax imposed in subsection A of this section, the square footage tax
will be due, but no gross receipts tax will be due. The taxpayer shall remit the tax
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due on the higher of the two categories, but not both, under subsections A and B of
this section.
C. Gross Receipt and Square Footage Tax Thresholds.
1. Gross Receipts Threshold. The gross receipts tax imposed in this section shall
not apply to any person whose company-wide gross proceeds of sales, gross
income of the business, and value of products, including by-products, as the case
may be, from all activities during any calendar year is equal to or less than
$500,000, nor shall it apply to any person who does not maintain a place of
business in the city whose annual value of products, gross proceeds of sales, or
gross income of the business in the city is equal to or less than $2,000.
2. Square Footage Threshold. The square footage tax imposed in subsection B of
this section shall not apply to any person unless that person’s total area of business
space within the city exceeds one of the following thresholds:
a. Four thousand (4,000) taxable square feet of business warehouse space; or
b. Two hundred sixty-one thousand three hundred sixty (261,360) taxable
square feet (six acres) of outdoor warehouse space.
If the square footage tax applies, it applies to all business space leased, owned,
occupied, or otherwise maintained by the taxpayer during the applicable reporting
period.
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Exhibit B
Ordinance 6943
3.54.150 Waiver of penalties and interest.
A. The director may cancel any penalties imposed under ACC 3.54.140(A) if the
taxpayer shows that its failure to timely file or pay the tax was due to reasonable cause
and not willful neglect. Willful neglect is presumed unless the taxpayer shows that it
exercised ordinary business care and prudence in making arrangements to file the
return and pay the tax but was, nevertheless, due to circumstances beyond the
taxpayer’s control, unable to file or pay by the due date. The director has no authority to
cancel any other penalties or to cancel penalties for any other reason except as
provided in subsection C of this section.
B. A request for cancellation of penalties must be received by the director within 30
days after the date the finance department mails the notice that the penalties are due.
The request must be in writing and contain competent proof of all pertinent facts
supporting a reasonable cause determination. In all cases the burden of proving the
facts rests upon the taxpayer.
C. The director may waive or cancel a penalty under ACC 3.54.140(A) when a
taxpayer is ineligible for a penalty waiver or cancellation under subsection A of this
section, if:
1. The taxpayer has timely filed all tax returns and paid all required taxes due for
24-months immediately preceding the period for which the waiver was requested;
or.
2. The timing of the taxpayer’s tax payment was in direct reliance on written
instructions from the director to the taxpayer.
D. The director may also waive or cancel interest imposed under this chapter if:
1. The timing of the taxpayer’s tax payment was in direct reliance on written
instructions from the director to the taxpayer; or
2. The timing of a taxpayer’s assessment deficiency payment was based on a due
date established for the sole convenience of the director.
E. The director may adopt rules for the waiver or cancellation of penalties and interest
under this section.
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AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6944 (Thomas)
Date:
July 8, 2024
Department:
Finance
Attachments:
Ordinance No. 6944
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
City Council to approve Ordinance No. 6944.
Background for Motion:
Ordinance No. 6944 amends portions of the Admission Tax Code to add clarity to the
definition of "admission charge" and remove obsolete licensing requirements.
Background Summary:
Ordinance No. 6944 amends portions of ACC 3.52, the Admissions Tax Code, for added
clarity and applicability of admissions tax and to eliminate obsolete requirements.
Additional language has been added to make it clear that rental charges for the exclusive use
of specific equipment and space for amusement, is included in the "admission charge"
amount for taxability purposes.
When the Code was first created in 1982, the City required a Certificate of Registration for
any "person conducting or operating any place for entrance to which an admission charge is
made...". It is unclear at what point over the past 42 years the City stopped issuing
Certificates of Registration. After considering the existing language and current operations,
the City would like to continue operations as-is and remove these requirements from the
Code.
Rev iewed by Council Committees:
Councilmember:Kate Baldwin Staff:Jamie Thomas
Meeting Date:July 15, 2024 Item Number:ORD.B
Page 53 of 71
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Ordinance No. 6944
July 11, 2024
Page 1 of 4
ORDINANCE NO. 6944
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON AMENDING AUBURN CITY
CODE SECTION 3.52.020 AND REPEALING AUBURN CITY
CODE SECTION 3.52.040 RELATED TO THE
ADMINISTRATION OF CITY ADMISSIONS TAX
WHEREAS, ACC Chapter 3.52 imposes and administers the City’s admissions
tax, which is authorized by RCW 35.21.280; and
WHEREAS, section ACC 3.52.040 requires Auburn businesses that charge an
admission to annually apply to the city for a certificate of registration; and
WHEREAS, the City no longer uses a certificate of registration to track
businesses that charge admission fees and it has not issued such certificates for many
years; and
WHEREAS, repeal of the section simplifies and improves the readability of the
code; and
WHEREAS, section ACC 3.52.020 contains a definition of “admission charge,”
which describes various admission charges including rental charges for equipment used
in recreation and amusement activities; and
WHEREAS, the definition of “admission charge” requires revision to promote
consistency and uniformity throughout the code, and to enable greater precision in the
administration of the Auburn’s admission tax; and
WHEREAS, repeal of the antiquated section of ACC 3.52 and the revisions
proposed in this ordinance are in the best interest of the City and its taxpayers.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Page 54 of 71
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Ordinance No. 6944
July 11, 2024
Page 2 of 4
Section 1. Repeal of Section of City Code. Section 3.52.040 of the Auburn
City Code is hereby repealed.
Section 2. Amendment to City Code. Section 3.52.020 of the Auburn City
Code is hereby amended to read as set forth in Exhibit A attached to this Ordinance.
Section 3. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 4. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section, or portion of this ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this ordinance, or the validity
of its application to other persons or circumstances.
Section 5. Effective date. This Ordinance will take effect and be in force five
days from and after its passage, approval, and publication as provided by law.
INTRODUCED: _______________
PASSED: ____________________
APPROVED: _________________
____________________________
NANCY BACKUS, MAYOR
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Douglas Ruth, Acting City Attorney
Published: ____________________________________________________________
Page 55 of 71
ORD 6944 – EXHIBIT A
______________________________________________________________________
--------------------------------
Ordinance No. 6944
July 11, 2024
Page 3 of 4
Chapter 3.52
ADMISSION TAX
Sections:
3.52.010 Tax levied.
3.52.020 Definitions.
3.52.030 Sign to be posted.
3.52.040 Certificate of registration. Repealed.
3.52.050 Administration, collection and remittance of taxes.
3.52.060 Collection and remittance for transitory or temporary amusements.
3.52.070 Reports and remittances by owner.
3.52.080 Repealed.
3.52.090 Repealed.
3.52.100 Repealed.
3.52.110 Repealed.
3.52.120 Collection of tax by civil action.
3.52.130 Violations – Penalty.
3.52.140 Effective date.
3.52.020 Definitions.
A. “Admission charge,” in addition to its usual and ordinary meaning, includes:
1. Charge made for season tickets or subscriptions;
2. A cover charge or a charge made for the use of seats or tables reserved or
otherwise, and similar accommodations;
3. A charge made for rental or use of equipment or facilities for purposes of
recreation or amusement., If persons renting or using and where the rental of the
equipment or facilities also pay a charge to enjoy or participate in the recreation or
amusement, the total is necessary to the enjoyment of the privilege for which
general admission is charged, the combined charge shall be the admission charge;
4. A charge made for admission to any theater, cabaret, tavern, dance hall,
amphitheater, private club, auditorium, observation tower, stadium, athletic pavilion
Page 56 of 71
ORD 6944 – EXHIBIT A
______________________________________________________________________
--------------------------------
Ordinance No. 6944
July 11, 2024
Page 4 of 4
or field, baseball or athletic park, golf course, or any similar place, and includes
equipment to which persons are admitted for purposes of recreation such as merry-
go-rounds, ferris wheels, dodge’ems, roller coaster, go carts and other rides,
whether such rides are restricted to tracks or not;
5. Charge made for automobile parking where the amount of the charge is
determined according to the number of passengers in an automobile;
6. A sum of money referred to as a “donation” which must be paid before entrance
is allowed;
7. The amount of an increase in the price of refreshments, service or merchandise
in a place if no fixed admission charge or cover charge is imposed, but the price
charged for refreshments, service or merchandise is higher during the time
entertainment or dancing is provided than at other times.
B. “Place” includes, but is not limited to, theaters, dance halls, amphitheaters,
auditoriums, stadiums, athletic pavilions and fields, baseball and athletic parks,
circuses, side shows, swimming pools, outdoor amusement parks, and such attractions
as merry-go-rounds, ferris wheels, dodge ’ems, roller coasters, and observation towers
within the city limits.
C. “Subscription” means, in addition to its usual and ordinary meaning, annual
membership dues or fees in an organization whose principal purpose is to present
theatrical or musical performance for its members.
3.52.040 Certificate of registration.
A person conducting or operating any place for entrance to which an admission charge
is made shall, on a form prescribed by the finance director, make application to and
procure from the city a certificate of registration which certificate shall be valid until the
thirty-first day of December of the year in which it was issued. Such certificate of
registration shall be posted in a conspicuous place in each ticket or box office where
tickets of admission are sold. (Ord. 3801 § 5, 1982.
Page 57 of 71
AGENDA BILL APPROVAL FORM
Agenda Subject:
Resolution No. 5774 (Faber)
Date:
July 8, 2024
Department:
Parks/Art and Recreation
Attachments:
Contract with Resolution
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
City Council adopt Resolution No. 5774.
Background for Motion:
Auburn Parks, and Recreation was awarded a grant in the amount of $212,033.49 from the
Cascade Bicycle Club for purposes of providing support for a new Middle School biking
program. Cascade Bicycle Club and the City of Auburn will work with local bike advocates,
educators, and local communities to expand the knowledge of bicycle and pedestrian safety
as well as leadership skills to students in systemically underserved communities with the goal
of improving the health and wellness of our youth as well as creating a cleaner, greener, and
more equitable state.
Background Summary:
Resolution No. 5774 authorizes the Mayor to execute an agreement between the City of
Auburn and the Cascade Bicycle Club to accept and expend grant funds in the amount of
$212,033.49 for the operation of two City Bicycle Programs.
Rev iewed by Council Committees:
Councilmember:Cheryl Rakes Staff:Daryl Faber
Meeting Date:July 15, 2024 Item Number:RES.A
Page 58 of 71
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Resolution No. 5774
DATE
Page 1 of 13 Rev. 2020
RESOLUTION NO. 5774
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO
EXECUTE AN AGREEMENT BETWEEN THE CITY OF
AUBURN AND THE CASCADE BICYCLE CLUB TO
ACCEPT AND EXPEND GRANT FUNDS FOR THE
OPERATION OF TWO CITY BICYCLE PROGRAMS
WHEREAS, The Washington State Department of Transportation (WSDOT)
provides grant funding through the Statewide School-Based Bicycle Safety Education
Program, which was created by statute in 2022; and
WHEREAS, the purpose of the program is to make elementary and middle school
students more confident bicyclists for transportation and/or recreation by developing their
bicycle skills and providing them with street safety knowledge; and
WHEREAS, the Cascade Bicycle Club is an organization that works with WSDOT
to identify qualified recipients of grant funding through the School-Based Bicycle Safety
Education Program and to administer those grants; and
WHEREAS, the Cascade Bicycle Club has awarded the Auburn Parks, Arts, and
Recreation Department grant funding for two middle school programs that teach bike
knowledge, bicycle and pedestrian safety, and leadership skills to students from
systemically underserved communities.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, RESOLVES as follows:
Section 1. The Mayor is authorized to execute an agreement between the City
of Auburn and the Cascade Bicycle Club to accept Statewide School-Based Bicycle
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Resolution No. 5774
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Safety Education Program grant funds, and to expend such funds. The agreement will
be in substantial conformity with the agreement attached as Exhibit A.
Section 2. The Mayor is authorized to enter into additional agreements and to
implement those administrative procedures necessary to carry out the directives of this
Resolution.
Section 3. This Resolution will take effect and be in full force on passage and
signatures.
Dated and Signed:
CITY OF AUBURN
____________________________
NANCY BACKUS, MAYOR
ATTEST:
______________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
______________________________
Douglas Ruth, Acting City Attorney
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Resolution No. 5774
DATE
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EXHIBIT A
CONTRACT BETWEEN
CASCADE BICYCLE CLUB AND
City of Auburn- Parks, Arts & Recreation
This Contract (the “Contract”) is entered into by and between the City of Auburn- Parks, Arts &
Recreation (“Auburn Parks and Rec” or “CONTRACTOR”), a government entity having its
principal place of business at 25 West Main, Auburn WA 98001 and the Cascade Bicycle Club
(“CBC”), a non-profit organization, having offices at 7787 62nd Ave NE Seattle, WA 98115.
Effective Date: July 15, 2024
Contract Amount: $212,033.49
Period of Performance: July 1, 2024 – June 30, 2025
1. PURPOSE. This Contract’s purpose is to provide support for the program described in
Appendix A (“Scope of Work”). The Contractor will furnish all reports and deliverables as set
forth in Appendix C (“Payment Schedule”). All Contract funds, including any interest and other
income earned thereon, must be expended exclusively for charitable purposes within the
meaning of Section 501(c)(3) of the U.S. Internal Revenue Code of 1986, as amended (the
“Code”) and specifically for the purposes stated above. Contract funds may not be expended for
any other purpose without CBC’s prior written approval.
2. WSDOT COMPLIANCE. The Contractor has reviewed the Statewide School-Based
Bicycle Safety Education Program (the “Statewide Program”) agreement between CBC and the
Washington State Department of Transportation (WSDOT). The Contractor acknowledges and
agrees to any requirements that may be imposed on CBC and pass through to the Contactor. Any
violation by the Contractor of the Statewide Program requirements is a breach of this Contract.
3. COMPENSATION AND PAYMENT. CBC is only obligated to reimburse the
Contractor for payments approved and reimbursed by WSDOT. It is in CBC’s sole discretion to
provide funds for anything outside of CBC’s reimbursement from WSDOT. As compensation for
the Statewide Program’s timely completion to CBC’s reasonable satisfaction, CBC anticipates
paying to the Contractor up to $212,033.49, as laid out in Appendix B. Payments will be made
on a reimbursement basis in installments as set forth in Appendix A. CBC may, in its reasonable
discretion or at WSDOT’s direction, modify payment terms and amounts and CBC will provide
30 days’ notice of such changes to the Contractor.
Monthly payments to the Contractor will be made within 30 days of receipt of funding by CBC
from WSDOT. The payment of each installment of the fees is further contingent upon (a) the
Contractor’s progress towards achievement of the Scope of Work’s purposes as determined in
CBC’s sole discretion, including timely and thorough completion and submission of any regular
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reporting required by CBC, (b) compliance with this Contract’s terms, (c) CBC’s reimbursement
by WSDOT of the necessary funds, and (d) there having been no material changes in the
Contractor’s operations, staffing, tax-exempt status, or funding that would adversely affect the
Contractor’s ability to carry out or accomplish this Contract’s purposes.
4. EXPENSE REPORTING AND INVOICING. No amount is due to the Contractor until
the Contractor has complied with CBC’s Expense and Invoicing Processes, attached as Appendix
C- Payment Schedule, and as updated by CBC. CBC shall pay all undisputed invoices within 30
days after CBC’s receipt funds from WSDOT. CBC may withhold payment for (a) any disputed
expense reports or invoices until the dispute is resolved or (b) until CBC receives the applicable
money from WSDOT.
5. TERM. This Contract is for a 1 year time period (July 1, 2024 - June 30, 2025). The
Contract may be renegotiated for the following year (July 1, 2025 - June 30, 2026) before this
Contract ends. Renegotiation will depend on successful implementation of the deliverables and
the Contractor and CBC’s desire to extend the Contract and continue the program.
6. INDEPENDENT CONTRACTOR. Nothing herein may at any time be construed so as to
create a relationship of employer and employee, partners, principal and agent, or joint venturers
between CBC and the Contractor.
7. PUBLICITY. The Contractor shall comply with all CBC marketing and intellectual
property policies and any other applicable restrictions imposed by CBC, including but not
limited to Climate Commitment Act Brand and Style Guidelines; WSDOT’s branding and style
guidelines; and CBC’s branding and style guidelines. The Contractor will acknowledge CBC and
WSDOT’s support in any public-facing materials relating to the Contract or the activities
supported by the Contract in a manner to be approved by CBC in writing in advance of the
publication of such materials.
The Contractor may report CBC as a funder in its annual report, on its website, and in similar
public communications and/or to any regulatory or governmental authority. Likewise, CBC may
include the Contractor as a contractor or partner in its annual report, on its website, and in similar
public communications and/or to any regulatory or government authority. Any other use by the
Contractor of CBC’s name and trade names, trademarks, or service marks, and all marketing,
advertising or other promotional materials referencing CBC and/or its trade names, trademarks
or service marks, is subject to CBC’s prior written approval.
If CBC submits a request for review and approval to the Contractor, the Contractor has 5
business days to respond. If no response is provided, then CBC’s request is automatically
approved by the Contractor.
8. MONITORING AND EVALUATION. CBC may monitor and conduct one or more
evaluations of the Contractor’s activities funded by the Contract. Such monitoring and evaluation
may include site visits from CBC personnel, speaking with the Contractor’s personnel, or a
review of records and materials relating to the Contract activities. The Contractor will cooperate
with and agree to provide any information reasonably requested by CBC. If during the Contract’s
term, the Contractor is audited, the Contractor will provide the audit report to CBC with a
detailed plan for remedying any deficiencies observed. The Contractor will promptly notify CBC
of: (a) any changes in the Contractor’s tax-exempt organization status under Section 501(c)(3) of
the Code; (b) any changes in the Contractor’s senior management team or key personnel
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responsible for carrying out the Contract’s purposes; or (c) material changes that has or could
have a material effect on the Contractor’s ability to carry out the Contract’s purposes.
9. RECORDKEEPING. For a minimum of 6 years after the Contract’s termination or the
expenditure of the funds, whichever is later, the Contractor will maintain records of receipts and
expenditures of the Contract funds and will make its books and records available to CBC for
inspection as requested. Upon the CBC’s request, the Contractor will provide to CBC, at the
Contractor’s expense, a copy of all data, information, and duplicable materials related to the
Contract, within 30 days of CBC’s request.
10. AMENDMENT; WAIVER. CBC retains the right to modify, suspend, or discontinue any
payment or to terminate the Contract and discontinue the Contract funding if, in CBC’s sole
discretion, CBC is not reasonably satisfied with the Contractor’s progress or determines that the
Contractor is not able to carry out or accomplish the Contract’s purposes or has failed to comply
with any term. CBC’s failure to exercise or enforce any right doesn’t operate as a waiver. The
waiver of a breach does not waive any other provision or operate as a waiver of a subsequent
breach of the same provision. If CBC waives any term, provision, or breach, such waiver will not
be effective unless it is in writing and signed by CBC. Except for as listed, this Contract and any
SOW may be modified or amended only by the parties’ mutual written agreement.
11. TERMINATION. CBC may automatically terminate this Contract and any SOWs if (a)
the Contractor is in breach of this Contract; (b) CBC does not secure its necessary funding; or (c)
WSDOT terminates its agreement or a scope of work with CBC. For any other termination
reason, CBC shall give the Contractor 7 days’ notice. If this Contract terminates for any reason,
then all SOWs automatically terminate unless the Contractor is notified otherwise. CBC shall
have no further obligations upon termination.
12. REPAYMENT OF FUNDS AND ASSETS. The Contractor must only use funds and
assets purchased with the funds for the Contract’s purpose. The Contractor may not use funds to
reimburse any expenses incurred prior to the Effective Date. At CBC’s request, the Contractor
will repay any funds or return assets used or committed in breach of this Contract, as solely
determined by CBC. The Contractor must return to CBC any portion of the unused funds and
any assets purchased with the funds no later than 10 days after the SOW or Contract’s
termination.
13. INSURANCE. The Contractor will provide CBC with a Certificate of Insurance, or
evidence of Self-Insurance, which documents insurance coverage for personal injury or property
damages claims that may arise from, or in connection to, this Contract’s performance, with limits
of not less than $1,000,000 per occurrence. The Contractor agrees to assume all liability for any
damages or losses sustained to property purchased or received for this Contract’s purpose. The
Contractor acknowledges full responsibility for replacing lost, stolen, or damaged property
purchased or acquired through this Contract.
14. INDEMNIFICATION. The Contractor agrees to indemnify, save, and hold CBC—and
CBC’s employees, contractors, owners, and agents—harmless from and against any and all
losses, expenses (including, but not limited to, payroll and income taxes and attorneys’ fees) and
damages arising from any third party claims, demand, proceedings, or actions that are the result
of the Contractor’s misconduct, gross negligence, or breach of this Contract.
15. COMPLIANCE WITH LAWS; RESTRICTIONS ON USE OF FUNDS. The Contractor
will not use Contract funds, directly or indirectly, in support of activities (a) prohibited by U.S.
laws related to combating terrorism, (b) with persons on the List of Specially Designated
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Nationals maintained by the U.S. Treasury Department (the “SDN List”) or entities owned or
controlled by such persons, or (c) with countries against which the U.S. maintains sanctions
programs unless such programs are permitted under applicable law. The Contractor certifies that
it does not knowingly employ individuals or contribute funds to persons on the SDN List or
owned or controlled by such persons or which are otherwise prohibited under applicable law.
The Contractor further agrees that it will not offer or provide money, gifts or other items of
value, directly or indirectly, to anyone in order to improperly influence an act or decision relating
to activities funded by the Contract, including by assisting any party to secure an improper
advantage. Further, the Contractor will not use any Contract funds to intervene in or influence
the outcome of any specific public election or support or oppose any political party or candidate
for any public office anywhere in the world, and the Contractor will not use any Contract funds
to carry on propaganda or otherwise attempt to influence legislation within the meaning of Code
Section 4945(d)(1) without CBC’s prior written approval.
16. REPRESENTATIONS AND WARRANTIES. The Contractor represents that it is
exempt from federal income tax under Section 501(c)(3) of the Code and is not a private
foundation under Section 509(a) of the Code.
17. MISCELLANEOUS.
a. Governing Law: This Contract is governed by, and will be construed in accordance with,
the laws of the State of Washington.
b. Dispute Resolution. The parties shall first attempt to resolve any dispute arising out of or
relating to this Agreement informally amongst themselves. If the parties cannot resolve the
dispute, the parties agree to formal mediation. If the parties cannot resolve a dispute through
mediation, then the matter shall be resolved by binding arbitration. Arbitration will be before a
single arbitrator that CBC selects. Arbitration will take place in Seattle, Washington. An
arbitration judgment may be entered and enforced by a court of competent jurisdiction, whose
judgment shall include the costs and attorneys’ fees for the prevailing party at arbitration.
c. Assignment: This Contract may not be assigned without CBC’s prior written consent.
d. Severability: If any term in this Contract is determined by a competent authority to be
unenforceable, void, or contrary to law, all other terms and provisions of this Contract will
continue in full force and effect. If a term or provision of this Contract is unenforceable, it will
be modified to the extent necessary for enforcement, or replaced by another provision that is
enforceable and achieves the same objective and result.
e. Waiver: Waiver of any provision will not be deemed a waiver of any other provision, nor
will waiver of any breach of any provision in this Contract be construed as a continuing waiver
of any other breaches of the same or other provisions of this Contract.
f. Compliance: The Contractor shall comply with all applicable laws, regulations, or
policies. If the Contractor fails to fully comply with any law, regulations, or policies, this
Contract may be terminated and the Contractor declared ineligible for further contracts with
CBC.
g. Notices: Any notice required pursuant to this Contract may be sent by email, overnight
courier or certified or registered mail to the addresses set forth in the signature page or as
updated by the parties. Notices may be by email only if the receiving party acknowledges the
receipt of the notice.
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h. Entire Contract: This Contract constitutes the entire agreement between the parties
regarding the subject matter and supersedes all prior contracts, agreements, or understandings
between the parties regarding such subject matter.
For the convenience of the parties, this Contract may be executed by email and in counterparts,
each of which will be deemed to be an original, and both of which taken together will constitute
one agreement binding on both parties. Each party represents and warrants that its signatory to
this Contract has the authority to execute this Contract and bind such party hereby.
IN WITNESS WHEREOF, the parties have caused this Contract to be signed by their duly
authorized representatives on the dates below.
By: ______________________________________
Name: Lee Lambert
Title: Executive Director
Cascade Bicycle Club
Date: _____________________________________
Notice Email: Leel@cascade.org
Notice Address: 7787 62nd Ave NE
Seattle, WA 98115
By: ______________________________________
Name: Nancy Backus
Title: Mayor
City of Auburn- Parks, Arts & Recreation
Date: _____________________________________
Notice Email: nbackus@auburnwa.gov
Notice Address: 25 West Main, Auburn WA 98001
Main Point of Contact
This individual is the primary contact for communication for day to day program needs and
updates.
Contact Information CBC City of Auburn Parks
Title Youth Development
Partnership Manager
Recreation Coordinator
Name Rachel Longest Kjerstin Lange
Email rachell@cascadebicycleclub.org Klange@auburnwa.gov
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APPENDIX A- Scope of Work
In March 2022, the Washington State Legislature passed a comprehensive, 16-year
transportation package (“Move Ahead Washington”) that includes $216M to be spent on a new
statewide school based bicycle safety education grant program (“Statewide Program”). The grant
will support two programs: one for elementary and middle school (“In-Class Program"); and one
for junior high and high school aged youth (“Youth Development Program”) to develop the skills
and street safety knowledge to be more confident bicyclists for transportation and/or recreation.
Eligible students will also have an opportunity to receive a bike, helmet, light, and lock free of
cost. The Washington State Department of Transportation (“WSDOT”) has selected Cascade
Bicycle Club (“CBC” or “Cascade”) to design and administer the Statewide Program, and
distribute funding to educational service districts, school districts and non-profit organizations.
Founded in 1970 and currently serving over 10,000 members, Cascade Bicycle Club is both the
state’s largest bicycling nonprofit and an expert in delivering two high-quality, school-based
bicycle education programs. The Let’s Go program provides elementary schools with the
resources to implement an in-class bicycle and pedestrian safety program for elementary and
middle school students. The Let’s Go curriculum is implemented in Physical Education classes
to teach students the fundamentals of bicycle safety, which builds confidence, inspires the joy of
riding, and encourages biking to school. Cascade’s Major Taylor Project (MTP) mentors students
from systemically underserved communities, teaching them bike knowledge and leadership skills
in after school settings. These two programs will serve as inspiration models for the Statewide
Program.
Cascade will work with local bike advocates, educators, and local communities to expand these
two programs statewide. Together, these programs are expected to reach 90 percent of
Washington State students by 2039, with the goal of improving the health and wellness of our
youth and creating a cleaner, greener, and more equitable state.
EQUITY METRICS
In selecting schools and partner organizations for the State Program, CBC must consider, at a
minimum, the following criteria:
● Population impacted by poverty, as measured by free and reduced lunch population or
200 percent federal poverty level;
● People of color;
● People of Hispanic heritage;
● People with disabilities;
● Environmental health disparities, such as those indicated by the diesel pollution burden
portion of the WA environmental health disparities map developed by the department of health,
or other similar indicators;
● Location on or adjacent to an Indian reservation;
● Geographic location throughout WA;
● Crash experience involving pedestrians and bicyclists;
● Access to a community facility or commercial center; and
● Identified need in the state active transportation plan or a regional, county, or community
plan.
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Responsibilities of Cascade Bicycle Club
Cascade Bicycle Club will:
1. Draft, finalize, and execute subcontracts with Community Partners. Subcontracts will
include the information submitted in the Contractor’s grant proposal application during the
Request for Proposal (RFP) process.
2. Provide a curriculum and supporting materials to Community Partners. The curriculum
will include key learning outcomes and evaluative tools that support the assessment of youth’s
learning progress.
3. Organize and facilitate trainings for Community Partners on facilitating the provided
curriculum.
4. Provide procurement support which may include program equipment and materials
5. Design the program evaluation and support partners in using evaluative tools and
processes where appropriate.
6. Provide technical support to Community Partners on topics such as youth bike
programming best practices, and best use of provided data collection tools
7. Collect, review, and submit partner monthly budget reports, and quarterly narrative
reports to WSDOT.
8. Distribute funds to Community Partners upon approval from WSDOT finance team.
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Program Deliverables:
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