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CALL TO ORDER
A. Pledge of Allegiance
B. Roll Call
City Council Meeting
January 4, 2016 - 7:00 PM
Auburn City Hall
AGENDA
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II. ANNOUNCEMENTS, PROCLAMATIONS, AND PRESENTATIONS
A. Miss Auburn Scholarship Program Days Proclamation
Mayor Backus to proclaim January 22 and 23, 2016 as Miss Auburn and Miss
Auburn's Outstanding Teen Days in the city of Auburn.
III. APPOINTMENTS
A. Election of Deputy Mayor
B. Arts Commission Appointment
City Council to confirm the appointment of Trudi Moses to the Arts Commission
for a three year term to expire January 31, 2018.
C. Board and Commission Reappointments
City Council to confirm the following board and commission reappointments for
three year terms ending December 31, 2018:
Airport Board
John Theisen
Arts Commission
Nancy Colson
Cemetery Board
Arnie Galli
Human Services Committee
JoAnne Walters
Parks & Recreation Board
Vicki Gilthvedt
Planninq Commission
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Jack Smith
Roger Lee
Salarv Commission
Terry Hurlbut
IV. AGENDA MODIFICATIONS
V. CITIZEN INPUT, PUBLIC HEARINGS & CORRESPONDENCE
A. Public Hearings
Public Hearinq for Riqht-of-Wav Vacation V2-15 (Snvder)
City Council to conduct a public hearing on the proposed vacation of right-
of-way of 64th Avenue South, south of South 300th Street (Vacation V2-15)
2. Public Hearinq for Franchise Aqreement No. 13-37, Amendment No.
1* (Snvder)
City Council to conduct a public hearing on the application from T-Mobile
West, LLC, for a non-exclusive franchise for the right of entry, use and
occupation of certain public right(s)-of way within the city, expressly to
install, construct, erect, operate, maintain, repair, relocate and remove its
facilities in, on, upon, along and/or across those right(s)-of-way. The
purpose of the public hearing is to determine public benefit and impact,
applicant compliance, public right-of-way capacity to accommodate the
telecommunication system, potential disruption of public right-of way, and
present and future use of the public right-of-way.
B. Audience Participation
This is the place on the agenda where the public is invited to speak to the City
Council on any issue. Those wishing to speak are reminded to sign in on the
form provided.
C. Correspondence
There is no correspondence for Council review.
VI. COUNCIL AD HOC COMMITTEE REPORTS
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.
VII. CONSENT AGENDA
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 December 7, 2015 Citv Council Meetinq*
B. Minutes of the December 14, 2015 Special Citv Council Meetinq*
C. Claims Vouchers (Coleman)
Claims voucher numbers 436561 through 436758 in the amount of
$4,817,116.39 and two wire transfers in the amount of $668,673.73 and dated
December 21, 2015.
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D. Claims Vouchers (Coleman)
2015 claims voucher numbers 436760 through 436926 in the amount of
$2,618,709.34 and two wire transfers in the amount of $146,002.97 and dated
January 4, 2016.
2016 claims voucher numbers 436759 and 436927 through 436938 in the
amount of $92,765.32 and dated January 4, 2016.
E. Pavroll Vouchers (Coleman)
Payroll check numbers 536087 through 536125 in the amount of $952,932.59,
electronic deposit transmissions in the amount of $1,396,176.60 for a grand total
of $2,349,109.19 for the period covering November 26, 2015 to December 16,
2015.
F. Pavroll Vouchers (Coleman)
Payroll check numbers 536126 through 536156 in the amount of $667,926.47,
electronic deposit transmissions in the amount of $1,373,159.91 for a grand total
of $2,041,086.38 for the period covering December 17, 2015 to December 30,
2015.
G. Public Works Proiect No. CP1208* (Snvder)
City Council approve Change Order No. 2 in the amount of $54,681.35 to
Contract No. 14-10 for work on Project No. CP1208 (Sewer Pump Station
Improvements)
(RECOMMENDED ACTION: City Council approve the Consent Agenda.)
VIII. UNFINISHED BUSINESS
IX. NEW BUSINESS
X. ORDINANCES
A. Ordinance No. 6575, First Readinq* (Snvder)
An Ordinance of the City Council of the City of Auburn, Washington, amending
Ordinance No. 6491 and the T-Mobile West, LLC Franchise No.13-37 to add an
additional location
(RECOMMENDED ACTION: City Council adopt Ordinance No. 6575.)
B. Ordinance No. 6576, First Readinq* (Snvder)
An Ordinance of the City Council of the City of Auburn Washington, vacating
right-of-way of 64th Avenue South, south of South 300th Street, within the City of
Auburn, Washington
(RECOMMENDED ACTION: City Council adopt Ordinance No. 6576.)
C. Ordinance No. 6580, First Readinq* (Snvder)
An Ordinance of the City Council of the City of Auburn, Washington, relating to
planning; adopting annual Comprehensive Plan text amendments pursuant to
the provisions of RCW Chapter 36.70A
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(RECOMMENDED ACTION: City Council adopt Ordinance No. 6580.)
D. Ordinance No. 6581, First Readinq* (Snvder)
An Ordinance of the City Council of the City of Auburn, Washington, amending
Sections 19.02.115, 19.02.120, 19.02.130 and 19.02.140 of the Auburn City
Code relating to school impact fees
(RECOMMENDED ACTION: City Council adopt Ordinance No. 6581.)
E. Ordinance No. 6583, Second Readinq* (Snvder)
An Ordinance of the City Council of the City of Auburn, Washington, amending
Section 19.04.040 of the Auburn City Code, entitled "Assessment of Impact
Fees" for the purpose of revising code language to clarify intent
(RECOMMENDED ACTION: City Council adopt Ordinance No. 6583.)
XI. RESOLUTIONS
A. Resolution No. 5193* (Roscoe)
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
International Association of Machinists and Aerospace Workers District Lodge
No. 160
(RECOMMENDED ACTION: City Council adopt Resolution No. 5193.)
B. Resolution No. 5195* (Roscoe)
A Resolution of the City Council of the City of Auburn, Washington, authorizing
the Mayor to execute an Interlocal Agreement for the EHCW VEBA Trust
Cooperative
(RECOMMENDED ACTION: City Council adopt Resolution No. 5195.)
XII. MAYOR AND COUNCILMEMBER REPORTS
At this time the Mayor and City Council may report on their significant City-related
activities since the last regular Council meeting.
A. From the Council
B. From the Mayor
XIII. ADJOURNMENT
Agendas and minutes are available to the public at the City Clerk's Office, on the City
website (http://www.auburnwa.qov), and via e-mail. Complete agenda packets are
available for review at the City Clerk's Office.
*Denotes attachments included in the agenda packet.
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AG EN DA BI LL APPROVAL FORM
Agenda Subject: Date:
Public Hearing for Right-of-Way Vacation V2-15 November 24, 2015
Department: Attachments: Budget Impact:
CD & PW No Attachments Available $0
Administrative Recommendation:
City Council to conduct a Public Hearing in consideration of Right-of-Way Vacation
V2-15. For further action on this item see Ordinance No. 6576.
Background Summary:
Per Auburn City Code Chapter 12.48 a public hearing shall be held to consider the
proposed right-of-way vacation for V2-15 for the right-of-way of 64th Avenue South,
south of South 300th Street. The date of the public hearing was set by Resolution No.
5179 on December 7, 2015.
Reviewed by Council Committees:
Councilmember:
Meeting Date:
Staff: Snyder
January 4, 2016 Item Number: PH.1
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AG EN DA BI LL APPROVAL FORM
Agenda Subject:
Public Hearing for Franchise Agreement No. 13-37,
Amendment No. 1
Department:
CD & PW
Attachments:
T-M obile Site Renderinq
Administrative Recommendation:
Date:
November 25, 2015
Budget Impact:
$0
City Council to hold a public hearing in consideration of Franchise Agreement No. 13-
37, Amendment No. 1.
Background Summary:
Per Auburn City Code Chapter 20.06.030 a public hearing shall be held to consider
the proposed Franchise Agreement No. 13-37 Amendment No. 1 for T-Mobile West,
LLC to operate and build a telecommunications system within the City's rights of
way. The date of the pubic hearing was set by Resolution No. 5176 on December 7,
2015.
The attached T-Mobile Site Rendering is reflective of what T-Mobile is proposing to
build in the City's right-of-way.
Reviewed by Council Committees:
Councilmember:
Meeting Date:
Staff: Snyder
January 4, 2016 Item Number: PH.2
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AG EN DA BI LL APPROVAL FORM
Agenda Subject:
Minutes of the December 7, 2015 City Council Meeting
Department:
Administration
Attachments:
M i nutes
Administrative Recommendation:
Background Summary:
Reviewed by Council Committees:
Councilmember:
Meeting Date: January 4, 2016
Staff:
Date:
December 29, 2015
Budget Impact:
$0
Item Number: CA.A
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CALL TO ORDER
A. Pledge of Allegiance
:
City Council Meeting
December 7, 2015 - 7:00 PM
Auburn City Hall
MINUTES
Mayor Nancy Backus called the meeting to order at 7:00 p.m. in the Council
Chambers located in Auburn City Hall, 25 West Main Street in Auburn, and led
those in attendance in the Pledge of Allegiance.
Roll Call
City Councilmembers present: Deputy Mayor Holman, Rich Wagner, Bill
Peloza, Largo Wales, Wayne Osborne, Claude DaCorsi and Yolanda Trout.
Department Directors and staff inembers present included: Parks, Arts and
Recreation Director Daryl Faber, City Attorney Daniel B. Heid, Innovation and
Technology Director Paul Haugan, Chief of Police Bob Lee, Human Resources
and Risk Management Director Rob Roscoe, Community Development and
Public Works Director Kevin Snyder, Finance Director Shelley Coleman, Director
of Administration Dana Hinman, Property and Facilities Analyst Josh Arndt,
Assistant Director of Engineering Services/City Engineer Ingrid Gaub, Assistant
Director of Community Development Services Jeff Tate, and City Clerk Danielle
Daskam.
ANNOUNCEMENTS, PROCLAMATIONS, AND PRESENTATIONS
A. Proclamation - Buy Local Campaign
Mayor Backus to proclaim November 28th - December 31 st, 2015 as "Buy Local
Campaign" in the City of Auburn and encourage residents to support our local
retail establishments.
Mayor Backus read a proclamation declaring November 28 to December 31,
2015 as "Buy Local Campaign" in the city of Auburn and encouraged residents
to support local retail and restaurant establishments during the holiday season
and throughout the year.
B. Auburn Valley Humane Society Loan Repayment Presentation
Executive Director Phil Morgan, Auburn Valley Humane Society, to update the
City Council on the loan repayment.
Phil Morgan, Executive Director of the Auburn Valley Humane Society (AVHS),
and representatives from the AVHS Board and volunteers were in attendance to
provide the City Council with an update on AVHS and significant milestones.
Using PowerPoint slides, Mr. Morgan reviewed the formation of AVHS and the
partnership between AVHS and the City of Auburn. In 2011, the City Council, by
resolution, entered into a Professional Services Agreement with the Auburn
Valley Humane Society to provide sheltering and licensing sales for lost and
abandoned animals for the City of Auburn, and AVHS opened its doors to the
public on January 1, 2013 at 4910 A Street SE. Mr. Morgan reviewed the animal
statistics and was pleased to announce the AVHS shelter has not euthanized
any adoptable animals. Volunteers are an integral part of the success of AVHS
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and AVHS volunteers have spent 76,887 hours cleaning kennels and cages,
feeding and caring for animals, greeting customers, fostering animals and
assisting in fundraisers and events.
Rick Oliveira, current president of the AVHS Board, shared the mission of AVHS
to provide shelter, quality care and love for all lost, mistreated and abandoned
animals in Auburn. AVHS utilizes all available resources to ensure each animal
is placed into a loving and forever home and promotes responsible pet
ownership through education and outreach.
AVHS Past President Dr. Don Edwards presented a check in the amount of
$102,548.00 check to the City as repayment of a loan for startup funds. Dr.
Edwards thanked the community for their support which allowed AVHS to repay
the loan one year early. Dr. Edwards thanked former Councilmember John
Partridge for his work and support in creation of AVHS.
III. APPOINTMENTS
A. Board and Commission Appointments
City Council to approve the following boards and commission appointments:
Arts Commission
Heather Longhurst to be appointed to the Auburn Arts Commission for a three
year term to expire December 31, 2018.
Deputy Mayor Holman moved and Councilmember Trout seconded to confirm
the appointment of Heather Longhurst to the Arts Commission.
MOTION CARRIED UNANIMOUSLY. 7-0
Auburn Lodqinq Tax Advisorv Board
Sharon Khera to be appointed to the Auburn Lodging Tax Advisory Board for a
three year term to expire December 31, 2018.
Deputy Mayor Holman moved and Councilmember Osborne seconded to
confirm the appointment of Sharon Khera to the Auburn Lodging Tax Advisory
Board.
MOTION CARRIED UNANIMOUSLY. 7-0
Civil Service Commission
Heidi Harris to be appointed to fill the unexpired term of Roger Thordarson for a
term to expire on December 31, 2016.
Deputy Mayor Holman moved and Councilmember Wales seconded to confirm
the appointment of Heidi Harris to the Civil Service Commission.
MOTION CARRIED UNANIMOUSLY. 7-0
IV. AGENDA MODIFICATIONS
Resolution No. 5187 was added to the agenda.
V. CITIZEN INPUT, PUBLIC HEARINGS & CORRESPONDENCE
A. Public Hearings
No public hearing was scheduled for this evening.
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B. Audience Participation
This is the place on the agenda where the public is invited to speak to the City
Council on any issue. Those wishing to speak are reminded to sign in on the
form provided.
Virgnia Haugen, 2503 R St SE, Auburn
Ms. Haugen commented that she enjoyed the Santa Parade. Ms. Haugen also
commented favorably regarding the Mary Olson Farm and the Auburn Valley
Humane Society.
Auburn Police Detective Doug Faini and Auburn Police Sergeant Dan O'Neill
Detective Faini and Sergeant O'Neill spoke in support of Resolution Nos. 5185
and 5186, which approve the Collective Bargaining Agreements for the Auburn
Police Guild and the Auburn Police Sergeants' Association for 2016-2018. They
thanked Human Resources and Risk Management Director Rob Roscoe and his
team for a fair collective bargaining agreement.
C. Correspondence
There was no correspondence for Council review.
VI. COUNCIL AD HOC COMMITTEE REPORTS
Council Ad Hoc Committee Chairs may report on the status of their ad hoc
Council Committees' progress on assigned tasks and may give their
recommendations to the City Council, if any.
Councilmember Wales reported on behalf of the Council ad hoc committee that
reviews claims and payroll vouchers. Councilmember Wales reported
Councilmember Osborne and she reviewed the claims and payroll vouchers as
presented on this evening's Consent Agenda and recommends their approval.
Mayor Backus noted next year's ad hoc committee will have new membership.
Councilmember Wales advised the ad hoc committee will consist of Councilmembers
Trout and DaCorsi.
VII. CONSENT AGENDA
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 November 16, 2015 Regular City Council Meeting
B. Minutes of the November 12, 2015 Special City Council Meeting
C. Claims Vouchers (Coleman)
Claims voucher numbers 436310 through 436560 in the amount of
$4,091,000.02 and four wire transfers in the amount of $1,382,110.60 and dated
December 7, 2015.
D. Payroll Vouchers (Coleman)
Payroll voucher numbers 536009 through 536086 in the amount of $408,216.41
and electronic deposit transmissions in the amount of $1,437,372.73 for a grand
total of $1,845,589.14 for the period covering November 12, 2015 to November
25, 2015.
E. Public Works Project No. CP1109 (Snyder)
City Council approve Final Pay Estimate No. 3 to Contract No. 15-05 in the
amount of $159,515.80 and accept construction of Project No. CP1109 - Hi
Crest Drive Storm Pipeline Repair and Replacement
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Deputy Mayor Holman moved and Councilmember Osborne seconded
to approve the Consent Agenda.
MOTION CARRIED UNANIMOUSLY. 7-0
VIII. UNFINISHED BUSINESS
There was no unfinished business.
IX. NEW BUSINESS
There was no new business.
X. ORDINANCES
A. Ordinance No. 6570, Second Reading (Coleman)
An Ordinance of the City Council of the City of Auburn, Washington, amending
Ordinance No. 6533, the 2015-2016 Biennial Budget ordinance, as amended by
Ordinance No. 6558 and Ordinance No. 6563, authorizing amendment to the
City of Auburn 2015-2016 budget as set forth in Schedule "A" and Schedule "B"
First reading of Ordinance No. 6570 occurred on November 16, 2015.
MOTION TO ADOPT ORDINANCE NO. 6570 CARRIED UNANIMOUSLY. 7-0
B. Ordinance No. 6571, Second Reading (Coleman)
An Ordinance of the City Council of the City of Auburn, Washington, amending
Ordinance No. 6533, the 2015-2016 Biennial Budget ordinance, as amended by
Ordinance No. 6558, Ordinance No. 6563, and Ordinance No. 6570, authorizing
amendment to the City of Auburn 2015-2016 Budget as set forth in Schedule "A"
and Schedule "B"
The first reading of Ordinance No. 6571 occurred on November 16, 2015.
MOTION TO ADOPT ORDINANCE NO. 6571 CARRIED UNANIMOUSLY. 7-0
C. Ordinance No. 6582, First Reading (Snyder)
An Ordinance of the City Council of the City of Auburn, Washington, amending
Section 10.41.020 of the Auburn City Code, entitled "Restricted Parking Zone
Established" for the purpose of revising code language to clarify intent
Deputy Mayor Holman moved and Councilmember Peloza seconded to adopt
Ordinance No. 6582.
Councilmember Osborne moved and Councilmember Wagner seconded to table
Ordinance No. 6582 and refer it to a Council study session.
MOTION CARRIED UNANIMOUSLY. 7-0
D. Ordinance No. 6583, First Reading (Snyder)
An Ordinance of the City Council of the City of Auburn, Washington, amending
Section 19.04.040 of the Auburn City Code, entitled "Assessment of Impact
Fees" for the purpose of revising code language to clarify intent
Deputy Mayor Holman moved and Councilmember Wales seconded to adopt
Ordinance No. 6583.
E. Ordinance No. 6584, First Reading (Snyder)
An Ordinance of the City Council of the City of Auburn, Washington, adopting
the 2015 City of Auburn Comprehensive Plan
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Deputy Mayor Holman moved and Councilmember DaCorsi seconded to adopt
Ordinance No. 6584.
Councilmember Wales noted some schools were inadvertently omitted from the
document.
Councilmember Peloza noted page 491 includes the term "marketing
director" which should be replaced with "appropriate responsible person".
Director Snyder stated he will provide the working matrixes, that were provided
to Planning Commission members, to Councilmembers for their information.
Councilmember Osborne commended staff for their work on the Plan.
Deputy Mayor Holman advised he received copies of two letters from the Puget
Sound Regional Council commending Auburn staff for the Plan document.
XI. RESOLUTIONS
A. Resolution No. 5176 (Snyder)
A Resolution of the City Council of the City of Auburn, Washington, setting a
public hearing to consider an amendment to Franchise Agreement No. 13-37
Ordinance No. 6491 with T-Mobile West LLC to add an additional location
Councilmember Osborne moved and Councilmember Trout seconded to adopt
Resolution No. 5176.
Councilmember Osborne advised the Resolution sets a public hearing on
January 4, 2016 on the request of T-Mobile to erect an antenna on a 74-foot
pole.
MOTION CARRIED UNANIMOUSLY. 7-0
B. Resolution No. 5179 (Snyder)
A Resolution of the City Council of the City of Auburn, Washington, setting a
public hearing to consider the vacation of right-of-way of 64th Avenue South,
South of South 300th Street, within the City of Auburn, Washington
Councilmember Osborne moved and Councilmember DaCorsi seconded to
adopt Resolution No. 5179.
Councilmember Osborne advised the Resolution sets a date for a public hearing
on a vacation petition.
MOTION CARRIED UNANIMOUSLY. 7-0
C. Resolution No. 5181 (Heid)
A Resolution of the City Council of the City of Auburn, Washington, amending
the City of Auburn Fee Schedule to adjust for 2016 fees
Deputy Mayor Holman moved and Councilmember Peloza seconded to adopt
Resolution No. 5181.
MOTION CARRIED UNANIMOUSLY. 7-0
D. Resolution No. 5185 (Roscoe)
A Resolution of the City Council of the City of Auburn, Washington, approving
the Collective Bargaining Agreement between the City of Auburn and the Auburn
Police Guild for 2016-2018
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Councilmember Wales moved and Deputy Mayor Holman seconded to adopt
Resolution No. 5185.
Councilmember Wales expressed appreciation to Human Resources and Risk
Management Director Roscoe for professional representation of administration
throughout the negotiation of the contract.
Councilmember DaCorsi expressed appreciation and gratitude to the Auburn
police officers.
MOTION CARRIED UNANIMOUSLY. 7-0
E. Resolution No. 5186 (Roscoe)
A Resolution of the City Council of the City of Auburn, Washington, approving
the Collective Bargaining Agreement between the City of Auburn and the Auburn
Police Sergeants' Association for 2016-2018
Councilmember Wales moved and Councilmember Trout seconded to adopt
Resolution No. 5186.
Councilmember Wales spoke in support of the Resolution and thanked Human
Resources and Risk Management Director Roscoe and Auburn Police for
their leadership.
MOTION CARRIED UNANIMOUSLY. 7-0
F. Resolution No. 5187
A Resolution of the City Council of the City of Auburn, Washington, establishing
a moratorium on acceptance or processing of applications and other licenses,
permits and approvals for residential uses in property within the C-1, Light
Commercial Zone
Resolution No. 5187 was added to the agenda.
Councilmember Peloza moved and Deputy Mayor Holman seconded to adopt
Resolution No. 5187.
Director Snyder explained the Resolution would establish a one-year moratorium
on the acceptance and processing of applications, licenses and other associated
applications for residential uses in the C-1, Light Commercial Zone. Director
Snyder reported over the last year, staff inembers have received applications for
residential uses in the C-1 Zone and through that effort, staff members have had
internal conversations and consultations with the Mayor about the continued
appropriateness of residential uses in the C-1 Zone. The City currently has 261
parcels assigned the C-1 zoning designation.
Councilmember Wagner expressed support for the moratorium. He suggested
staff emphasize that the moratorium would not affect current applications.
Deputy Mayor Holman stated he was hesitant to support the moratorium at first;
however, since the moratorium affects only residential uses in a C-1 zone
and with the assurance the moratorium will likely last less than a year, he will
support the Resolution.
MOTION CARRIED UNANIMOUSLY. 7-0
G. Resolution No. 5188 (Mayor Backus)
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A Resolution of the City Council of the City of Auburn, Washington, updating the
City of Auburn's vision statement and mission statement and establishing the
City of Auburn's Core Values
Councilmember Wales moved and Councilmember DaCorsi seconded to adopt
Resolution No. 5188.
MOTION CARRIED UNANIMOUSLY. 7-0
H. Resolution No. 5189 (Snyder)
A Resolution of the City Council of the City of Auburn, Washington, dedicating
property acquired by the City of Auburn for the S. 277th Reconstruction Project
as right-of-way
Deputy Mayor Holman moved and Councilmember Osborne seconded to adopt
Resolution No. 5189.
MOTION CARRIED UNANIMOUSLY. 7-0
Resolution No. 5190 (Roscoe)
A Resolution of the City Council of the City of Auburn, Washington, approving
the Collective Bargaining Agreement between the City of Auburn and the Auburn
Police Management Association for 2016-2018
Councilmember Osborne moved and Deputy Mayor Holman seconded to adopt
Resolution No. 5190.
Councilmember Osborne advised Resolution No. 5190 approves a Collective
Bargaining Agreement with the Police Commanders.
MOTION CARRIED UNANIMOUSLY. 7-0
Resolution No. 5191 (Snyder)
A Resolution of the City Council of the City of Auburn, Washington, authorizing
the City to expend funds to abate the litter, junk, weeds and attractive nuisance
in the City of Auburn and authorizing steps to recover the City's costs thereof
Councilmember Peloza moved and Councilmember Trout seconded to adopt
Resolution No. 5191.
Councilmember Peloza stated code enforcement has identified four properties
that require abatement of litter, junk, weeds, inoperable vehicles, and attractive
nuisances.
MOTION CARRIED UNANIMOUSLY. 7-0
XII. MAYOR AND COUNCILMEMBER REPORTS
At this time the Mayor and City Council may report on their significant City-related
activities since the last regular Council meeting.
A. From the Council
Councilmember DaCorsi reported on his attendance at the Association of
Washington Cities (AWC) Legislative Priorities Committee, where the Committee
re-emphasized the AWC city priorities for the 2016 legislative
session: infrastructure, sustainability, emergency responsiveness, the Public
Records Act, human services/homelessness and affordable housing.
Councilmember Peloza reported he attended the South County Area
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Transportation Board meeting.
Councilmember Trout reported she attended the Domestic Violence Initiative
Regional Task Force meeting. The Task Force will be changing its name to the
Coalition Ending Gender Bias Violence.
Councilmember Osborne thanked the Council and citizens for the opportunity to
serve the citizens of Auburn for the last four years on the City Council.
Councilmember Osborne also thanked City staff for the work they do for the
City. Councilmember Osborne thanked Mayor Backus and Councilmembers for
their assistance, guidance and friendship.
B. From the Mayor
Mayor Backus reported on her attendance at the Lakeview Elementary DARE
graduation, the Sound Cities Association annual meeting, the Lakeland
Elementary DARE graduation, the Tree Lighting and Santa Parade, and emceed
the Red, White and Blue Concert at the Performing Arts Center.
Mayor Backus thanked Councilmember Osborne for his service on the Council
and his past service on the Planning Commission and Airport Advisory Board.
Mayor Backus expressed her appreciation to Councilmember Osborne for his
time dedicated to the citizens of Auburn.
XIII. ADJOURNMENT
There being no further business, the meeting adjourned at 8:16 p.m.
APPROVED this 4th day of January, 2016.
NANCY BACKUS, MAYOR Danielle Daskam, City Clerk
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AG EN DA BI LL APPROVAL FORM
Agenda Subject:
Minutes of the December 14, 2015 Special City Council
Meeting
Department:
Administration
Attachments:
12-14-2015 Speaal M e�inq M inutes
Administrative Recommendation:
Background Summary:
Reviewed by Council Committees:
Councilmember:
Meeting Date: January 4, 2016
Staff:
Date:
December 23, 2015
Budget Impact:
$0
Item Number: CA.B
CA.B AUBURN * MORE THAN YOU IMAGINED Page 17 of 201
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CALL TO ORDER
Special City Council Meeting
December 14, 2015 - 5:30 PM
Auburn City Hall
MINUTES
Mayor Nancy Backus called the meeting to order at 5:30 p.m. in the Council
Chambers located in Auburn City Hall, 25 West Main Street in Auburn.
City Councilmembers present: Deputy Mayor John Holman, Rich Wagner, Bill
Peloza, Largo Wales, Wayne Osborne, Yolanda Trout and Claude DaCorsi.
Department Directors and staff inembers present included: City Attorney Daniel
B. Heid, Community Development and Public Works Director Kevin Snyder,
Assistant Director of Engineering Services/City Engineer Ingrid Gaub, Assistant
Director of Community Development Services Jeff Tate, Planning Services
Manager Jeff Dixon, Utilities Engineering Manager Lisa Tobin, Water Utility
Engineer Susan Fenhaus, Code Compliance Officer Jason Arbogast, Code
Compliance Officer Chris Barack, Code Compliance Officer Tami Kapule, Parks,
Arts and Recreation Director Daryl Faber, Innovation and Technology Director
Paul Haugan, Director of Administration Dana Hinman, Police Chief Bob Lee,
Police Sergeant Dan O'Neil, Police Officer Jason Blake, Finance Director
Shelley Coleman, and Deputy City Clerk Shawn Campbell.
ACTION
A. Ordinance No. 6584 (Second Reading) (Snyder)
An Ordinance of the City Council of the City of Auburn, Washington,
adopting the 2015 City of Auburn Comprehensive Plan
Assistant Director Tate explained the City is required to update
the Comprehensive Plan. The City has chosen to overhall the entire plan to
make it a more readable, usable focused document. Many jurisdictions hire
consultants to update their Comprehensive Plan, the City chose to update
this plan in-house. City staff has been working on this update for over two
years, including 16 different authors within the City, input from every
department and Planning Commissioners.
Mayor Backus thanked staff for their time and effort on this Comprehensive
Plan update.
MOTION CARRIED. 7-0
B. Public Works Project No. C207A (Snyder)
City Council approve Final Pay Estimate No. 6 to Small Works Contract No.
14-17 in the amount of $2,308.50 and accept construction of Project No.
C207A, A Street NW Extension Offsite Wetland Mitigation Project — Phase 2
Planting
Councilmember Osborne moved and Councilmember Wales seconded to
accept final Pay Estimate No. 6 for Small Works Contract No. 14-17� ge �of 2
CA.B Page 18 of 201
accept Public Works Project No. C207A.
Councilmember Peloza asked what the scope of work was for this
project. Assistant Director Gaub explained when the project was started
the contractor did the initial planting. Now that the project is complete the
contactor is required to do a second phase of planting. The second phase
included items that are more ground cover or plants that need shade
provided by the first planting.
MOTION CARRIED. 7-0
III. ADJOURNMENT
There being no further business to come before the Council, the meeting adjourned
at 5:39 p.m.
APPROVED this 4th day of January, 2016.
NANCY BACKUS, MAYOR Shawn Campbell, Deputy City Clerk
Page 2 of 2
CA.B Page 19 of 201
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Agenda Subject:
Claims Vouchers
Department:
Finance
AG EN DA BI LL APPROVAL FORM
Date:
December 17, 2015
Attachments: Budget Impact:
No Attachments Available $0
Administrative Recommendation:
City Council approve claims vouchers.
Background Summary:
Claims voucher numbers 436561 through 436758 in the amount of $4,817,116.39 and
two wire transfers in the amount of $668,673.73 and dated December 21, 2015.
Reviewed by Council Committees:
Councilmember:
Meeting Date:
Staff: Coleman
January 4, 2016 Item Number: CA.0
CA.0 AUBURN * MORE THAN YOU IMAGINED Page 20 of 201
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Agenda Subject:
Claims Vouchers
Department:
Finance
AG EN DA BI LL APPROVAL FORM
Date:
December 29, 2015
Attachments: Budget Impact:
No Attachments Available $0
Administrative Recommendation:
City Council approve claims vouchers.
Background Summary:
2015 claims voucher numbers 436760 through 436926 in the amount of
$2,618,709.34 and two wire transfers in the amount of $146,002.97 and dated
January 4, 2016.
2016 claims voucher numbers 436759 and 436927 through 436938 in the amount of
$92,765.32 and dated January 4, 2016.
Reviewed by Council Committees:
Councilmember:
Meeting Date:
Staff: Coleman
January 4, 2016 Item Number: CA.D
CA.D AUBURN * MORE THAN YOU IMAGINED Page 21 of 201
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Agenda Subject:
Payroll Vouchers
Department:
Finance
AG EN DA BI LL APPROVAL FORM
Date:
December 17, 2015
Attachments: Budget Impact:
No Attachments Available $0
Administrative Recommendation:
City Council to approve payroll vouchers
Background Summary:
Payroll check numbers 536087 through 536125 in the amount of $952,932.59,
electronic deposit transmissions in the amount of $1,396,176.60 for a grand total of
$2,349,109.19 for the period covering November 26, 2015 to December 16, 2015.
Reviewed by Council Committees:
Councilmember:
Meeting Date:
Staff: Coleman
January 4, 2016 Item Number: CA.E
CA.E AUBURN * MORE THAN YOU IMAGINED Page 22 of 201
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Agenda Subject:
Payroll Vouchers
Department:
Administration
AG EN DA BI LL APPROVAL FORM
Date:
December 29, 2015
Attachments: Budget Impact:
No Attachments Available $0
Administrative Recommendation:
City Council to approve payroll vouchers
Background Summary:
Payroll check numbers 536126 through 536156 in the amount of $667,926.47,
electronic deposit transmissions in the amount of $1,373,159.91 for a grand total of
$2,041,086.38 for the period covering December 17, 2015 to December 30, 2015.
Reviewed by Council Committees:
Councilmember:
Meeting Date:
Staff: Coleman
January 4, 2016 Item Number: CA.F
CA.F AUBURN * MORE THAN YOU IMAGINED Page 23 of 201
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Agenda Subject:
Public Works Project No. CP1208
Department:
CD & PW
AG EN DA BI LL APPROVAL FORM
Attachments:
I mprrnrenent M atrix
Vianity Map
CP1208 BudgetStatusShe�
Administrative Recommendation:
Date:
December21, 2015
Budget Impact:
$0
City Council approve Change Order No. 2 in the amount of $54,681.35 to Contract
No. 14-10 for work on Project No. CP1208 (Sewer Pump Station Improvements)
Background Summary:
This project is constructing various improvements to 11 City sanitary sewer pump
stations that include upgrading the ability of maintenance staff to access and maintain
wet wells, installation of new back-up generator systems, site improvements such as
fencing, lighting, and equipment shelters, and establishment of cathodic protection
systems. See the attached Improvement Matrix for specific improvements at each
sewer pump station site.
This change order includes the following work: 1) Work needed to address the
Department of Labor and Industry's (L&I) comments made during its inspection of the
completed project work that were unforeseeable at the time of bidding. 2) Installation
of a specialized connector at the R Street Pump Station to allow a portable generator
to be plugged in for added emergency power protection. 3) Completion of the contract
work required disturbance of a larger area then originally anticipated. Change order
includes additional asphalt paving and sidewalk replacement to address those areas.
A project increase of $38,998.00 within the 431 Sewer Fund will be necessary,
however it will not require a budget adjustment due to contingency funds that are
available to be transferred from Project No. CP1512, 2015 Sewer Repair and
Replacement.
Reviewed by Council Committees:
Councilmember:
Staff: Snyder
CA.G AUBURN * MORE THAN YOU IMAGINED Page 24 of 201
Meeting Date: January 4, 2016 Item Number: CA.G
CA.G AUBURN * MORE THAN YOU IMAGINED Page 25 of 201
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CA.G Page 27 of 201
BUDGET STATUS SHEET
Project No: CP1208 Project Title: Sewer Pump Station Improvements Project
Project Manager: Joel Chalmers
� Project Initiation
Initiation Date: 9/3/13 Q Permision to Advertise Date: December 17, 2015
Advertisement Date: 8/26/14 Q Contract Award
Award Date: 9/15/14 Qi Change Order #2
� Contract Final Acceptance
The "Future Years" column indicates the projected amount to be requested in future budgets.
Funds Budgeted (Funds Available)
Fundina Prior Years 2014 (Actuall 2015 Total
431 Fund - Sewer
Total
109,153
109.153
92,801 � 1,229,047 � 1,431,001
92.801 I 1.229. 047 I 1.431.001
Estimated Cost (Funds Needed)
Activity Prior Years 2014 2015 Total
Design Engineering - City Costs 39,477 47,470 22 86,970
Design Engineering - Consultant Costs 69,675 24,650 2,854 97,179
Construction Contract Bid 0 1,089,274 1,089,274
Authorized Contingency 0 20,000 20,000
Change Order No. 1 0 22,843 22,843
Change Order No. 2 54,681 54,681
Easement Acquisition 3,237 0 3,237
Construction Other- Misc. 8,849 8,849
Construction Engineering - City Costs 17,444 57,523 74,967
Construction Engineering - Consultant Costs 0 12,000 12,000
Total 109,153 92,801 1,268,046 1,470,000
�431 Funds Budgeted ( )
*431 Fund Project Contingency ( )
431 Funds Required
Prior Years
(109,153
109,153
0
�(#) in the Budget Status Sections indicates Money the City has available.
431 Sewer Budget Status
2014 2015
(92,801) (1,229,047
92,801 1,268,046
0 0
0 38.999
Total
;1,431,001
1, 469, 999
0
38.998
H:\PROJ\CP1208-Sewer Pump Station Improvements\Budget\Sewer Imp Proj BudgetStatusSheet 2011-12-
�Ax1sx Page 28 of 201
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Agenda Subject:
Ordinance No. 6575, First Reading
Department:
CD & PW
AG EN DA BI LL APPROVAL FORM
Attachments:
Ordinanoe Na 6575
Ordinanoe Na 6491
Drawing A-2 SE047151
Administrative Recommendation:
City Council adopt Ordinance No. 6575.
Background Summary:
Date:
December 3, 2015
Budget Impact:
$0
Per Auburn City Code Chapter 20.06.120, Amendment of franchise, a new franchise
application shall be required of any commercial utility or telecommunications carrier or
operator that desires to extend its franchise territory or to locate its utility or
telecommunications facilities in public ways of the city which are not included in a
franchise previously granted under this title.
T-Mobile West, LLC has applied for an amendment to their existing Franchise
Agreement to be able to operate and build within the City's rights of way an additional
wireless telecommunications facility adjacent to 11534 SE 318th Place. The applicant
proposes to replace the existing 33'8"' wood Puget Sound Energy (PSE) pole located
in the City right of way on 116th Avenue SE with a new 54' PSE pole that they would
then attach wireless transmission antennas to. In addition, the facilities would also
include underground conduits connecting the equipment on the pole to associated
ground equipment located on private property at 11534 SE 318th Place. Per
T-Mobile's application, this new site will provide much needed in-building coverage in
the area of 116th Avenue SE and SE 320th Street and the surrounding
neighborhoods. Exact locations, plans, engineering and construction schedule would
be reviewed, approved and managed through the City's permitting processes that are
a requirement of the existing Franchise Agreement.
A Public Hearing will be held January 4, 2016 on this amendment. Public notices of
the hearing were mailed to properties within 1000 feet of the proposed pole location.
Reviewed by Council Committees:
ORD.A AUBURN * MORE THAN YOU IMAGINED Page 29 of 201
Councilmember:
Meeting Date:
Staff: Snyder
January 4, 2016 Item Number: ORD.A
ORD.A AUBURN * MORE THAN YOU IMAGINED Page 30 of 201
ORDINANCE NO. fi575
AN QRDINANCE OF THE CITY COUNGIL �F THE CITY OF
AUBURN, WASHINGTON, AMEN_DING ORDINANCE NO.
fi491 AND THE T-MQBILE WEST, LLC FRANCHISE N0.13-
37 TO ADD AN ADDiTIONAL LOCATION
WHEREAS, On February 18, 2Q14, the City Council adopted Ordinance
No. 6491, granting a wireless communications franchise to T-Mobile West, LLC
("Grantee"); and
WHEREAS, T-Mobile West LLC wishes to add an addi#ional site within the
City; and
WHEREAS, following proper notice, the City Council held a public hearing
on the Grantee's request�fo� an Amendment to Franchise Agreement No. 13-37,
at which time representati�es of Grantee and intereste� citizens were heard in a
ful_I public proceeding afFording opportunity for comment by any and all persons
desiring to be heard; and
WHEREAS, based upon the foregoing recital clauses a�d from
information presented at such public hearing and from facts and circumstances
developed or discovered through independent study and investigation, the City
Council in compEiance wi#h RCW 35.99 now deems it appropriate and in t_he best
interest of tf�e City an�i its inhabitants that the Amendment to Franchise
Agreement No. 13-37 be granted to the Grantee.
Ordinance No. 6575
Franchise Agreement No, 43-37, Amendment.No..1
Qctober 1, 2015
Page 1 of 6
ORD.A Page 31 of 201
NOW, THEREFORE, THE CITY CDUNCI� OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Sectian 1. Exhibits A and B of Ordinance No. 6491 a�'e hereby replaced
with Exhibits A and B, attached he.reto and incorpo�ated herein by this reference,
and a new Exhibit D-1 is added as an Exhibit to Ordinance No. 6491, which
additional Exhibit is also attached hereto and incorporated herein by this
reference.
Section 2. All other provisions of Ordinance No. 649'� shall remain
unchanged and in full force and effect.
Section 3. Implementation. The Mayor is hereby authorized to
implement such administrative procedures as may be necessa.ry to carry out the
directions of this legislation.
Section 4. Severability. The provisions of tnis ordinance are dec�ared to
be sep.a_rate and se�erabfe. The in�alidity of any clause, senterice, parag"raph,
subdivision, section or po.rtion of t_his ordinance, or the invalidity of the application
thereof to any person or circumstance shall not affect the �afidity of the
remainder o# this ordinance, or the validi#y of its application to other persons or
circumstances.
Section 5. Effective date. T�iis Ordinance shall take effect and be in
force fi�e days from and after its passage, approval and publication as pro�ided
by law.
FIRST READING:
SECOND READING:
PASSED:
/_�»:Zil�/ � ��
Ordinance No. 6575
Franchise Agreement. No. 13-37, Amendment I�o. 1
October 1, 2015
Page 2 of 6
ORD.A Page 32 of 201
NANCY BACKUS, MAYOR
ATTEST:
Danielle E. Daskam, City Clerk
Published:
Ordinance No. 8575
Franchise Agreement No. 13-37, Ame�dment No. 1
October 1, 2015
Page 3 of 6
ORD.A Page 33 of 201
Exhibit "A" - T-Mobile Franchise Area ���-��
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Ordinance No. 6575
Franchise Agreement No. 13-37, Amendment No, 1
October 1, 2015
Page 4 of s
,
ORD.A Page 34 of 201
EXHIBIT "B"
GRANTEE FAC I LITI ES
EXISTING T-MOBILE FACILITIES IN CITY OF AUBURN ROW
Site ID:
Location
Description
Site ID:
Location
Descriptian
Site 1D:
Location
Descriptian
SE4Q42A, "Peasley Canyon"
33043 46fh Plac� S�uth
Auburn, WA 980�1
Telecommunications Facifity consisting of above ground radio
equipment cabinets located in a 12'x17' ce�ar waod fence
enclosure in the Right-of-Way {ROW}, with antennas collocated on
an exisfing 88' aba�e-ground wooden utility pole in the ROW with
connecting underground conduit.
SE0402$B, Mountain View CemeterylPR
5605 S 324t" PIacE
Auburn, WA 98001
Telecommunications Facility consisting of antennas located on an
existing 75' above-grauncE round waod utility pole in the Right af
Way with cannecting undergraund con�uit to the radio equipment
cabinets lacated on adjacent pri�ate property.
NEW T-MOBILE �ACILITIES IN CITY OF AUBURN ROW
SE047151, Lea Hill
11534 SE 3�8th Place
Auburn, WA 98Q92
Telecommunicatians Facifity consisting of an#ennas lacated an a
new utifity replacement pale in the Right of Way with connecting
underground conduit ta ground equipment located on pri�ate
property.
Ordinance No. 6575
Franchise Agreernent Na
Octaber 1, 2015
Page 5 of 8
13-37, Amendment Na. 1
ORD.A Page 35 of 201
EXHIBIT "D-1"
STATEMENT OF ACCEPTANCE
T-Mobile West LLC, a Delaware limitecf liability company, for itseif, its successors
and assigns, �ereby accepts and agrees to be bound by all lawfu! terms,
conditions and provisions af the Franchise attachec� hereto and incorpora�ed
herein by this reference.
T-Mobile West LLC,
a Delaware limited liability company
gy; Date:
Name:
Titie: PNW Area Director, Engineering &
Operations
STATE OF WASHINGTON )
)ss.
COUNTY OF KING )
On this day af , 201�, before me the undersigned, a
Notary Pu�lic in and for the State o# , duly commissioned and sworn,
personally appeared, of T-Mabile West L�C, the company
that executed ti�e within and foregoir�g instrument, and acknowledged the said
instrument to be ihe free and voluntary act and deed of said campany, for the
uses and purposes therein mentioned, and on oath staied that helshe is
authorized to execute said instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and aftixed my officia[
seal on the date hereinabave set forth.
Signature
NOTARY PUBLIC in and for the 5tate of
, residing at
MY COMMISSION EXPiRES:
Ozdinance No. 6575
Franchise Agreement No. 13-37, Amer�dmant No
dctober 1, 2415
Page fi of 6
ORD.A Page 36 of 201
ORD�NANCE NO. 6 4 9 9
AN ORDINANCE OF THE CITY C4UNCIL OF THE
CITY OF AUBURN, WASHINGTON, GRANTING TO
T-MOBILE WEST LLC, A DELAWARE LIMITED
LIAB[LITY COMPANY, A FRANCHISE FOR
TELECOMMUNICATIONS
WHEREAS, T-Mobile West LLC, a Delaware limited [iability
company("Grantee") has applied to the City of Aubum {"City�') for a non-exclusive
Franchise for the right of entry, use, and occupation of certai� public right{s)-of-
way within the City, expressly ta instal�, construct, erect, operate, mairrtain,
modify, repair, relocate and remo�e `its facilities in, on, o�er, under, along andlor
across those right(s}-of-way {"Franchise"); and
WHEREAS, with respect ta same of these facilities, they were previously
instatled the public rights af ways with the permission of King Cour�ty, whicl�
managed those right(s)-of-way prior to the ar�nexation of those r'sghts of way into
the City of Au�um; and
WHEREAS, following proper notice, the City Council held a p�blic hearing on
Grar�#ee's request for a Franchise, at which time representati�es af Grar�tee and
interested citizens were heard in a ivl� public proceeding affording opportunity for
commen# by any and aA persons desiring to be heard; and
WHEREAS, witf� respect to those facilities pre�ious[y installed by
a�,ithorization of King County, thEs agreement supersedes and repiaces afl
agreements between Grantee and King County; and
WHEREAS, based upon the foregoing recital clauses, and from
infonnation presented at such public hearing, and from facts and circumstances
de�eloped or discovered through independent st�dy and in�estigation, the Cit�+
Council in complEance with RCW .35.99 naw deems it appropriate and ir� the best
interest of the City+ and its inhabitar�ts that the franchise be granted to Grantee.
NOW, THEREFQRE, THE C1TY COUNCIL OF THE CITY OF AUBURN
WASHINGT�N, DD ORDAIN as foilows:
Section 1. Grant of Right to Use Fra�chise Area
A. Subject to the tertns and conditions stated herein, pursuant to RCW
35.99 the City grants to the Grantee genera� permission to errter, use, and
occupy the pubtic right(sj-of-way of the City. However, Grarrtee shall not extend
its occupation of the public rigF�ts of way beyond the two facilities that presently
Ordi�ance No. 6491
Franchise �qreement No. 13-37
February 11, 2014
Page 1 of 15
ORD.A Page 37 of 201
occupy t�e righ#s of way as specified in Eachibi� "A", attached hereto. and
incorporated by reference (the "Franchise AreaR}, without ha�ing frst obtained an
amendment ta this agreement and s.ite spec�c perm#ts from the City authorizing
Grantee to install telecommunicatzons equi�ment at such other lacations than
specified in Exhibit "A".
B. This Franchise does no# authoriae the use of the public rights of
ways for any facilities of services other than for wireless telecommunications
facilities. �
C. This Franchise is non-exclusive and does not prohibit the C�ty from
entering into o#her agreements, including Franchises, impacting the Franchise
Area, unless the City determines that entering into suct� agreements interferes
with Grantee's rights set forth hereir�..
D. Except as ex�licitly set forth herein, this Franchise daes not waive
any rights that tl�e City has or may hereafter acquire.wi#h respect to City rights-of-
way: Ti�is Franchise sha�l be seabject to the pawer of eminent dornainT and in any
proceeding under eminent domain, Crantee acknowledges that #he City has t#�e
power of eminent domain and that Grantee's remedies in the e�e�t of the
exercise o€ such power are set forth in RCW 35.99 and other appiicable Iaw.
E. The City reserves t�e right to chartge, regrade, relocate, abaRdon,
or �aqte any p�blic right-of-way. if, at any time during the term of this
Franchise, the City vacates any portian of the rights of way containing Grantee
Facilities, t�e City sha�l reserve an easement for pubfic utilities within that
�acated portion, pursuar�t to RCW 35:79.03�, within which the Grantee may
continue to aperate any exist�ng Grantee Facilities under the terms of #his
Franchise for the remaining period set forth under Sectior� 3.
F. The Grantee agrees t�at its use of the Franchise Area shail at all
times be s�bordinated to and subiect to the City and the public's need for
municipal inftastructure, travel, and access to the Franchise Area, except as may
be otherwise required by law..
Section 2. Notice
A. Except as defined in the respecti�e filing and emergency work
pro�isions of Sections 5 and 7 herein, a11 notioes, requests, demands and other
communications shalf be in writing and are effective three (3) days ai�er deposi#
�n the U.S. maif, ce�tified and pos�age paid, or �pon reaeipt if personafly delNeted
or sent by next-business-day deli�ery vEa a nationally recognized ovemight
courier to the addresses se# forth below. City or Grantee may fram time ta time
�rdinance Na. 6491
Franchise Agreement No. 13-37
February 11, 2014
Page2of15
ORD.A � Page 38 of 201
designate any other address for this purpose by providing written notice io ihe
ather party efFective #hirty (3�) days af%r the provision thereof.
City: City of Aubum
Engineering Aide, Transportation
25 West Main Street
Aubum, WA 98001-4998
Telephone: {253} 931-3010; Fax: (253) 93i-3048
with a copy to: City Clerlc
City of Auburn
25 West Ma�n Street
Aubum, WA 98001-4998
Grantee: T-Mobile USA, Inc. -
9 2920 SE 38"' Street
Be[levue, WA 98006
Atter�tion: Lease Compliancel City of Aub�m Franchise
8. Any changes to #he abo�e-stated Grantee �nformation shall be sent
to the City, referencing the title of this agreement.
C. The above-�stated �oice and fax telephone numbers shall be stafFed
at least during normal business hours, Pacifc time zone.
Section 3. Term of Agreement
A. This Franchise shall run for a period of fi�e (5) years, from the date
of execution specified in Section 5. �
B. Renewal 4ption of Term: The Grantee may renew this Franchise
for an addi�io�al fi�e (5) year period upon submission aRd appro�al of the
application specfied under ACC 20.06.130, as it now exists or is amended,
within #he timeframe set �forth therein (currently 240 to 180 days prior to
expiration of the then-current term), which approva[ shall not be unreasonably
with�eld, conditioned of delayed. Any�materials submitted by the Grarttee�fbr a
previous applica#ian may be considered by the City in re�iewing a current
application, and ihe Grantee sha11 only submit those materials reasonably
deemed neoessary by the City to address changes in the Grantee Facilrties or
Grantee Senrices, or to reflect specifc reporting pe�io�s mandated by the ACC.
Ordinance No. fi491
Franchise Agreement No. Z 3-37
February 1�, 2fl�4
Page 3 of 1 �
ORD.A Page 39 of 201
C. Failure to Renew Franchise — Automatic Extensior�. If the Parties
faii to formaily renew this Franc�iise prior to the expiration of i#s term or .any
extension thereof, the Franci�ise a�i#omatically continues mont� to manth until
renewed or until eithec party gi�es written notice at least one hundred eighty
(184) days in ad�ance o� the irrtent not to renew the Franchise.
Sec#ion 4. Definitions
For the purpose of this agreement:
"ACCn mea�s t�e Aubum City Code.
"Eme�gency" means a cv�dition of imminent danger to the heaith, safety and
welfare of persons or property located within the City incl�ding, without limitation,
damage to persons or properly from natural consequer�ces, such as storms,
earthquakes, riots, acts of terrorism or wars.
"Maintenance or Maintain" shaq mean exami�ing, #esting, inspecting, repairing,
main#aining, modifying and/or replacing the existing Grantee Facilities or any part
thereof as required and ner.essary fior safe operatian.
"Relocation" means permanent mo�ement of Grarttee facifities required by the
City, and not temporary or inciden#al mo�ement of such facilities, or other
revisions Grantee would accomplish and charge to third parties wi�hout regard to
m�nicipa� request.
�Rights-of Way" means the surFace and the space abo�e and below streets,
roadways, highways, aver�ues, co�rts, lanes, alieys, sidewalks, and easements,
owned or contfolled by the City. �
Section 5, Acceptance of Franchise
A. This Franchise, and any righEs granted here�nder, shall not
become effective for any purpose unless and until Grantee fi[es with. the City
C�erk (1) the Statement of Acceptance, attached hereto as Exhibi� "�," and
incorporated by referenc:e, (2) all verifications af insurance co�erage specified
under Section 15, and (3) the finar�cial guarantees spec�ed in Sectio�i 16
(co[lectively, uFranchise Acceptan�e"}. The date that such Franchise Acceptance
is filed with �he City Cierk shall be the effecti�e date o# this Franchise.
B. Shoutd the Grantee fail to file the Franchise Acceptance wi#h the
Ci#y Clerk within thir#y (30} days after the effective da#e of the ordinance
approving the Franchise, the City°s grant of the Franchise wil! be null and void.
O�dinance No. 6491
Franchise Agreement No. 13-37
February � 1, 2014
Page 4 of 45
ORD.A Page 40 of 201
Section 6. Canstruction and Mainfienance
A. The Grantee shall apply for, obtain, and comply with #he terms of ail
pennits required under ACC Cfiapter 12.24 for any work done upon Grantee
Facafities. Grantee shall comply witi7 all applicable City, Siate, and Federal
codes, rules, regulat�ons, and orders in undertaking such work, which sha11 be
done in a thorough and proficient manner.
B. Grar�#ee agrees ta coordinate its acti�ities with the Gity and all other
utilities located within the public rig�t=of-way within which Grantee is undertaking
i�s acti�ity.
C.. The City expressly reserves the right #o prescr�be how and where
Grantee Facilities shalf be installed within the p�blic right-of-way and rnay from
time to time, pursuant to the applicable sections of t�is FrancF�ise, require �he
removal, refocation and/or repiacement.thereof in the public irrterest and safety ir�
compliance with applicabls faw. �
D. Be�ore commencing any work involving excavation within tF�� public
right-of-way, the Grantee shall comply with the 4ne Number Locator provisions
of RCW Chapter 19.�22 to ide�tify existing utility infrastructure.
E. Tree Trimming. , Upon prior �written appro�al of the City and in
acoordance with Ci#y ordinances, Grantee s#�all have the authority to reasonably
trim trees upon and o�erha�ging streets, public �igfits-of-way, and places in #!�e
Franc�ise Area so as to preve�t the branches of such trees from coming in
physical contact with the Grantee Faciliiies. Grantee shal! be responsible for
debris remo�al from suci� acti�ities. If such debris� is not removed within twenty-
four (24) hours of completion of the trimming, the City may, at its so�e discretion,
remo�e sucfi debris ar�d charge Grantee for the cost t�ereof. TF�is sectio� does
no#, in any instance, grant automatic=authority to clear �egetation for purposes of
providing a clear paih for radio signals. Any such general vegetatian clearing wil[
require an additiona! and separate appro�al fram the City.
5ec#ion 7. Access, Repair and Emergency Work
ln the event of ar� emergency, the Grantee may commence such repair
and emergency respa�se wark as re�uired �nder the circumstances, provided
that the Grantee sha�f notify the City telepho�icalfy during normal business haurs
(at 253-931-3�10 ar�d during nort-business ho�r� at 253-876-'[985} as promp�y
as possibke, before such repair or emergency work commences, and in writing as
soon thereafter as possible. Such noti�cation sha�l include the Grarrtee's
emergency c:ontact phone number for the correspondir�g response actNity. For
�rdinance No. 649�
Franchise Agresment No. 13-37
February 11, 2Q14
Page 5 of 15
ORD.A Page 41 of 201
any emergency or af�er narmal business ho�r iss�es in�olving the Grantee's
faci[ities which req�ires the Grantee's immediate response the City shall contaci
#he Grantee at their networ�c operations center telephonically at 888-662�6B2,
which is operated 24 hours a day, seven days a week. The City rnay oomme�ce
emergency response work, at any tsme, without prior written notice io the
Grantee, but shall notify the Grantee in writ�ng as promp#ly as possible under the
circumstances af the nature of tC�e emergency and the actions taken to address
it.
Sectian 8. Damages to City and Third-Rarty Property
Grantee agrees that if any of its actions under this Franchise impairs or
damages any City property, survey mon�ment, or property owned by a third-
party, Grantee will restote, at its own cost and expense, said property to a safe
condition. Such r�epair work shall be performed and completed pursuant to City
Code..
Section 9. Location Prefe�+ence and Interference
A. Any structure, equipment, appurter�ance or tang�ble property of a
utiiiiy, other than ti�e Grantee's, which was instalfed, co�structed, completed or in
place prior in time to Grantee's appficatior� for a pennrt to consiruct or repair
Grarrtee Facili�ies under this Franchise shaN ha�e preference as #o positio�ing
and locatian with respect to the Grantee Facilities. Howe�er, to the extent that
tFie Grantee Facilities are completed and instalied prior to anvther �tility's
submittal of a permit for new or additionaf s#ructures, equipment; appurtenances
or tangible property, theR t�e Graniee Facifities shall have s�ch priority. These
rules goveming preference shall con#inue in the event of the necessity of
reloca#ing or changing the grade of any City road or right-of way. A relocating
utility �shall nat neoessitate the relocatiort of another utility that otherwise would
not require relocation. This Section shaq not appiy to any City facilities or utilities
that may in the future require #he relocation of Grantee Faciiities. Suc�
relocatians shall be govemed by Section 11.
B. Grantee shal) maintain a minimum underground horizontal
separaiion of five (5} feet from� City water facilities and ten (10) feet �rom above-
ground City wa#er faciiities; provided, that far development of new areas, the Ciiy,
in consuliation with Grantee and other utility purveyors or authorized users of ihe
Public Way, wilI de�elop guidelines aRd procedures �or determining specific utili#y
locatior�s.
Section 1�. Grantee Information
A. Grantee agrees to supply, at no cost to the City, any information.
reasonably r�ques#ed by the City ta coo�dina#e municipal functions with
Ordinance No. 6491
Franchise Agreement No. 13-37
February 11, 2014
Page 6 of 9 5
ORD.A Page 42 of 201
Gran#ee's acti�ities and futfill any municipal obfiga�ans under state law. Said
information shall include, ai a minimum, as-buift drawings of Grarrtee Facilities,
installation inventory, and maps and p�ans showing the location of existing or
planned facilities within the Rights-of-Way. Said� information may be reques#ed
either in hard copy or electronic format, compatible with t#�e City's da#a base
system, as now or hereinafter existing, including the Gity's geographic
information Service (GIS) data base. Grantee sitail keep the City informed of its
long-range plans for coordination with the City's long-fange plans.
B. The pa�ties unde�stand that Washington law limits the ability of the
City to shield from public disclasure any information given to the City.
Accordingly, the City agrees to notify ti�e Grarrtee of requests for pub�ic records
related to the Grar�tee, and to give the Grantee a reasonable amount of time to
obtain an injunction to prohibit th� City's release of reoords.
C. Grantee shall indemnify and hold harmless the City for any loss or
�iabiiity for fnes, penalties, aRd casts (including attomeys fees} imposed on the
City because of non�-disclos�res requested by Grantee under Weshington's open
public reoords act, provided #he Ci�y has notified Grantee of the pending request
and has gi�en Gran#ee ten workir�g days to obtain an injunction to profi�ibit the
Ci�y's release of records.
Section 17. Relocation vf Gran#ee Facilities
A. Except as otherwise so req�,ired by law, Grantee agrees to
reiocate, remo�e, or reroute its facilities as ordered by the City Er�gir�eer at no
expense or fiabili#y to the Ci#y, except as may be re�uired by RCW Chapter 35.99
in the. everit the Franchise Area is required for use by the City in performance of
its municipaf services. �n such event, City wi�l give Grantee prior written notice of
the need fior such reiocation of the Franchise Area. Notwithstanding ihe foregoing
however, and pursuant to the pro�isions of Sec#ion 14, Grantee agrees to p�otect
and sar►e harmless #he City from any customer or third-party claims for service
interrvption or other similar losses in connection with any sucF� change,
re�ocation, abandonment, or r►acation of ihe rigi�t-of-way(s).
B. If a readjustment or relocation of the Grantee Faci�ities is
necessita#ed by a request #rom a party other than t�e City, that party shall pay
the Grantee the actual costs thereof.
Section 12. Abandonment and or Removal of Grantee Fac�lities
A. Within one �undred and eigh#y days (18D) of Grantee's permanent
cessation of use of the Grantee Facilifies, or any portion thereaf, the Grarrtee
shall, at the Cit�i's discretion, remo�e the affected facilities, or, with the City's
Qr�inance No. 6491
Franc�ise Agreement No. 43-37
February 11, 2094
Page 7 of 15
ORD.A Page 43 of 201
written permission, abandon in place such facilities whereupon they will #ransfer
to the City in ti�eir AS IS and WHERE IS condition without need of execution of
any further dacumer�tation formalizing the transfer, and wi#hou# representation or
warranty of any kind or nature pTovided the Grantee shaEl provide to #he Cityr
drawings, maps or other documentation about said facilities to the reasonable
satisfaction of the City. Foilowing such transfer, Grantee shall no longer be
responsib�e for any liability, maintenance, repair or remo�a[ obiigations related to
or arising from the transferred facilities.
B. The parties expressly agree that ti�is Section shall survive the
expiration, revocation or termination of. this Franc[�ise..
Sec#ion 13. Undergroundi�g
A. The parties agree that this Franchise does not limit the City's
autharity under federal law, state �aw, or �ocal ardinance, to require the
undergrounding of utilzties that can be installed underground.
B. Whenever the City requires the undergrounding of aerial utilities in
the Franchise Area, the Gran#ee shall undefgro�and those portions of Grantee
Facilities that� can be installed ur�derground in the manner specifed by the City
Engineer at no expense or IEabil'rty to the City, except as may be requir�d by
RCW Chap#er 35.99 or other appticable law. Where other utilitiss are preserrt
and in�al�ed in the undergrounding project, Grantee sha[I only be required to pay
its fair share of common cos#s borne by all u#ifities it utilizes, in addition #o the
cosEs specifcally attributab�e to . the undergrounding of Grantee Facilities.
Common costs shall include necessary costs far common trenching and utili�y
vaults. Fair share shaq be de#emnined in comparison #a the total number and
size of al[ other utility iacil�ties being undergrounded and the use thereof by all
applicable parties
Section 14. Indemnification and Hold Harmless
A. The Grantee shall defend, indemnify, and hold the City and its
office�s, �cEa�s, agents, employees, and �olunteefs harmless from any and a11
�costs, claims, injuries, damages, losses,. sui#s, or fiabil�ties of any nature incl�ding
attomeys' fees #o the extent caused by Grantee's perFormance �nder this
Franchise, except to the exient such costs, claims, injuries, damages, losses,
suits, or liabilities are caused by the negligence of the Ci#y, its agents,
contractors, employees or in�itees. Shoutd a court of competent jurisdiction
determine that this Agreement is su�ject to RCUV 4.24.115, then, in the e�ent of
I�ability for damages arising ovt of bodily injury to persons or damages to property
ca�sed by or resulting from the concurrent negliger�ce of #he Grantee and the
Ordinartce No. 6494
Franchise Agreement I�o. 13-37
February 11, 2014
Page 8 of 15
ORD.A Page 44 of 201
City, its officers, offcials, emplayees, and �olunteers, the Grantee's liability
hereunder shall be only to ti�e extenf af the Grantee's negfigenoe.
B. The Grantee shall hold the City harmless from any liability for any
damage or loss to the GraRtee Facifities caused by maintenar�ce andlor
construciion work perFormed by, or on be�a4€ of, the City within the Franchise
Area or any other City road, right-of-way, or other property, except to the extent
any such damage or loss is directly caused by the negligence or intentional
miscor�duct of the Ciiy, its agents, contractors, employees or in�itees pertorming
such wo�c.
C. The Grantee acknowledges that neiiher the City nor any other
public agency with responsibility for frefghting, emergency rescue, public safety
or similar duties within the City has the capability to provide trench, close trench
or confined space rescue. The Grantee, and its agenfs, assigr�s, successors, or
contractors, shall make suc#� arrangements as Grantee deems fit for the
provision of such sen►ices. The Graritee shall hoid the City harmless �rom any
fiability aris�ng out of or in connection with any damage or loss to the Grantee for
#he Cii�r's failure or inabilit�r to provide such sen►ices, and, pursuant to the terms
of Section 14(A), the Grantee shaq indemnity #he City against any and al[ thErd-
party costs, claims, injuries, damages, losses, suits, or Iiabilit�es based on ihe
City's failure or inability to pror►ide such services.
D. Acceptance by #he City of any work performed by the Grantee shall
not be grouRds for avoidance of this section.
E. !t is further spec�calfy and expressly understood thai the
indemnifica�ion provided herein consiitutes the Grar�tee's wai�er of immunit�r
under .��dustrial Insurance Title 51 RCW, solely for the purposes of this
indemni�ca�ion. Th'ss wa€ver has beeri mutually negotiated by the parties. The
pro�isions of this section shal� survive the expiration or termination of this
agreement with respect to acts or e�ents occurring prior thereto.
Section '�5. Insurance
A. The Grantee s#�all procure and maintain for the duratian of this
Franchise, insUr�ance against ciaims for ir�j�ries to persons or damage to property
which may arise ftom or in coRnection with the per#ormance of the work
hereunder by the Grantee, its agents, representatives, or employees in the
amounts and types set forth below:
1. Au#omabile Liability insurance covering all owned, non-
owned, hired, and leased �ehicles with a minimum combined single limit for
OrdinaRce No. 6491
Franchise Agreement No. 73-37
February 11, 2014
Page 9 af 15
ORD.A Page 45 of 201
bodify injury and property damage of $1,aoo,O�U per accident. Co�erage shall
be written on Insurance Services OfFoe (ISD) form CA QQ Q1 or a subst�tute form
providing equi�alent liabiiity co�erage. If neoessary, the policy shall be endorsed
to pro�ide contractual liability co�erage..
2. Commercial General Liability insurance witi� limits no 3ess
than $1,000,00� each occurrence, $2,000,000 general aggregate and a
$1,a00,DOD products-campleted operatior�s aggregate limit. Coverage shall be
written on ISO occurrence form CG 00 01 and shall co�er liability arising from
prem€ses, operations, independent contractors, products-completed opera#ions,
stop gap liability, and personal inj�ry liability assumed under an insured corrtract.
The Commercial Ger�eral Liability insuranoe s�ail be endorsed to pro�ide the
Aggr�gate Per Pro�ect ERdorsement ISO form CG 25 03 11 8�. ThEre shal� be
no er�dorsemeRt or modification of the Commercial General Liability insurance for
liability arising ftom explosion, colfapse, ar underground property damage. The
Ci#y shall be �amed as an additional insu�ed under the Grantee's Commercial
General Liabili#y insurance policy w�ih respect ta the work performed under this
Franchise using IS4 Addi#iorial Insured Endorsement CG 2U 1� 10 01 and
Additional Ins�red-Completed Operations endorsement CG 20 37 10 01 or
substitute endorsements p�oviding equivalent co�erage.
3. Professional Lia6ili#y ir�surance with limits no less than
$'t,Q00,OQD per claim camed by all licensed professionals employed or retained
by Grantee to perForm services under this Franchise,
4. Workers' Compensation co�erage as required by t�e
Industrial Insurance laws of the State of UVashington. .
B. The insuraRce poficies are to cor�tain, or he endorsed to contain,
the follow�ng pro�isions for Automobile Liabi�ity, Professional Liability, and
Commercial Ger�erat Liability ins�rance:
1. The Grantee's insurance co�erage shall be primary
insuraRce with respect to claims alleging Grantee's negligenc�. Any insurance,
self-insut�ance, or insurance pool' co�erage maintained by the City shall be in
excess of the Gran#ee's insuranc:e and shafl not �contribute with it..
2. The Grarrtee's insurance s�all be endorsed to state that
co�rerage shall not be canaelled by either party exoep# after thirty {30} days' prior
written notice by certfied mai�, retum receipt requested, has been given to the
City.
C. Ar.ceptability of Ins�rers. Insuranve is to be placed with insurers
w�t� a current A.M. Best rating of not less than A:V[I.
Ordinance Na. 6491
Franchise Agreemerrt No. 13-37
February 11, za�a
Page 10 af 15
ORD.A Page 46 of 201
� D. Verification of Co�erage. Grantee shall furr�ish the City with
documentation of insurer's A.M. Best rating and with original certificates and a
copy of amendatory endorsem�nts, including but not necessarily limited to the
add�tior�al insured endorsement, evidencing. the insurance requirements of the
Consultant before cammencement of the work.
E. Grantee shall ha�e the right to se�f insure any or aA of the abo�e-
required insurance. Any such self insuranoe is subject to approval lay the Gify.
F. Grantee's maintenanoe of insurance as required by this Franchise
shall noi be consirued to limit the liability of Grantee to the coverage provided by
such insurance, or otherwise limit the Ci#y's recourse to any remedy to which the
City is o#herwise entitled at law or in equit�+.
Section 16. Performance Security
The Grantee sha[I provide the City wi#h. a bond, or other financial guarantee in, a
form and substance reasonably acceptabte to the City, in the amount af Fifty
Thousand Dollars ($50,000) running for, or renewable for, #he term of this
Franchise. In the e�ent Grantee shal[ fai'i[ to substantially comply with arry one or
more of the �ro�isions of this agreement witi�in the applicable cure or grace
period, then there shall be reco�ered joiRtly and se�eraily from the principal and
any surety of s€�ch fnancial guarar�tee any damages suffered by City as a direct
restalt thereo#, including but not limite� to staff time, ma#erial and equipment
costs; com�ensation or indemnification of third parties, and the cost of remo�al or
abandonment af #acilities hereinabove described. Grantee spec�cal�y agrees
t�at its failure fo comply with the terms of Sectian 19 shall consti#ute damage to
the City in the monetary amount set fiorth therein. Such a financiaE gcaarantee
shall rtot be car�strued to limit the Grantee's liability to the guarantee amoun#, or
otherwise limit the City's recourse to any remedy to which the City is otherwise
entitied at law or in equity.
Section 17. Successors and Assignees
A. AI� the provisions, condi#ians, regulations and requirements herein
contained shall be binding upor� the successors, assigns of, and independent
contractors of the Grantee, ar�d al� rights and privileges, as well as all o�ligations
and liabilities o# the Grantee sha�l in�re to its successors, assig�ees and
contractors equally as if they were specificalty men#ioned herein whereve� the
Grantee is mentioned.
B. This Franchise shali not be [eased, assigned or otherwise aiienated
witt�out the express prior consent of the City by ordinance. The #oregoing
Ordircance No. 6491
Franc�ise Agreement No. 13-37
February 11, 20�4
Fage 11 of 15
ORD.A Page 47 of 201
notwiths�andirig, Grantee may assign this Franchise in whole or in part without
the need for the City's conserrt to any enti#y that contrais, is controlled by, or is
under common cor�trol w�h Grantee, or to any entity resulting from any merger or
consolida#ion with Grantee, or to any partner of Grantee or to any �artnership in
which Gra�#ee is a general partner, or to any person ar entity that acquires all of
the assets of Tenant as a going concem.
C: For any assignmer�t requiring City consent, Grantee and any
proposed assignee or transferee shafi pro�ide and certifjr the following to the City
not less than sixty (60) days after the proposed date of #ransfer: (a) Complete
information setting fortl� the nature, term ar�d conditions af the proposed
assignment or transfer (redacied �for any financial terms); (b} All infarmation
reasonably required by the City of an a�plicant for a Franchise witfi respect to the
proposed assignee or transferee; and, (cj An application fee which shall be set
by the City, pkus any ott�er costs ac#ually and reasonably incurred by the City in
processir�g, and investigating fhe proposed assignment or transfer..
D. Prior to the CitSr's consideration of a request by Grantee to consent.
to a Franchise assignment or transfer, the proposed Assignee or Transferee sh�a[I
file with the City a written promise to unconditionally accept all terms of the
Franchise, effectirre upon such transfer or assignment of the Franchise. The Cityr
is under no obligation to un�ertake a�y investigation of the transfero�'s state of
compl�anc:e and failure af the Ciiy ta insisi an fu11 compiiance prior to transfer
does no# wai�e any right to insist on futl compliance thereafter.
E. Upon assigr�ment, Grantee shall be relieWed of all liabi[ities and
obligations hereunder accruing thereafter and Cit�r shatl look solely to the
assignee for pe�Formance under ti�is agreement and all such obligat�nns accruing
ihereafter hereunder pro�ided such assignee accep#s all such obligations in
writing within thirty {3D) days of the date of assignment and is of substantialiy
similar financial strength or credit worthiness as Grantee.
Section 18. Dispute Resolution
A. In the eWent of a dispute betweer� the City and the Grantee arising
by reason of this Agreement, the dispute shal[ firsf be re#erred to the operational
officers or representati�es designated by Grantor and Grantee to have oversight
vver the administration of this Agreement. The offroers or representatives sha[I
meet within thirty {30) calendar days of either party's request for a meeting,
w�ichever request is firsE, and the parties shall make a good faith effort to
achie�e a resolution of the dispute.
B. if the parties fail to achie�e a resolution af the dispute in tt�is
man�er, eifher party may then purs�e any a�ailable judiciat remedies. This
Ordinance No. 6491
Franchise Agreement No. 13-37
February 11, 2014
Page '�2 of 15
ORD.A Page 48 of 201
Franchise shaA be gaverned by ar�d construed in accordance with the laws of the
State of Washington. In the event any suit, arbitration, or other proceeding is
instituted to enforce any term of th.is Agreement* the parties specificafly
�nderstand and agree that venue shall be exclusively in King County,
Washington. The prevailing party in any such actian shail be enfrtled to its
attorneys' fees and costs of suit, whi�h shall be fixed by the judge hearing the
case, and such fees shaU be included in the judgment.
Section 19. Enforcemer�# and Remedies
A. If the Grantee shall wi[Ifully violate, or fai� to comply with any of the
pro�isions af this Franchise through willful or unreasonable negligence, or s�ould
it fail ta heed or comply with any notice given ta Grantee under t�te pro�isions of
this agreement, ihe City may, a# its discretion, pro�ide Grarttee w�th written natice
to cure the breach within thirty {30) days of notification. If the City determines #he
breach cannot be cured within thirty (30} days, the City may specify a Ivnger cure
period, and condition the extension of time on Graniee's submittal of a plar� to
cure the breach within the specified periad, commencement of work within #he
original thirty day cure period, and diligent prosecution of the worlc to completion.
If the breach is not cured within the specfied t�me, or the Gran#ee does not
oomply with the specified conditions, the City may, at its discre#ion, either (1j
revoke the Franchise with no further notifcation, or (2) claim damages of Two
Hundred Fifty Do[lars ($250.D0) per day against the finar�cial guarantee set forth
in Section 16 for every day after fihe e�iration of the cure period tt�at the breach
is not cured.
B. Should the City determine that Grantee is acting beyond the scope
of permission granted herein for Grantee Facilities a�d Grantee Services, the
City reserves the right to cancef this Franchise andlor require the Grantee to
apply for, obtain, and comply with all appftcable City permits, franc�ises, or o#her
City permissians for such ac#ions, and if the Grantee's actions are not allowed
under applicable federal and state or Ci#y laws, to compel Gran#ee to ceas� sucfi
actions.
S�ction 20. Compliance with Laws and Regulations
A. This Franchise is subject to, and the Grantee shall comply with all
applicable federal and state ar Ciiy laws, regulations and policies (including all
applicable elements of the City's comprehensi�e plan}, in conformance with
federal laws and regulations, affecting per�ormance under this Franchise.
Furthermore, notwitt�stan�ing any other terms of this agreement appearing to the
contrary, the Grantee s�all be subject to the police power af the City ta adopt and
enforce ger�eral ordinances necessary to protect the safety and welfare of ti�e
genera3 public in relatio� to the rigi�ts granted in ihe Franchise Area.
Qrdinance No. 8491
Franchise Agreement Na. 13-37
February 11, 2014
Page 13 of 15
ORD.A Page 49 of 201
B. The Ciiy reserves the right at any time to amend this Franchise to
co�farm to any hereafter enacted, amen�ed, or adopted #ederal or s#ate s#atute
o� regu�ation relating to t�e public health, safety, and welfare, i� required by such
statute or reg�lation, or relating to raadway regulatian, or a City Ordinance
enacted purs�ant to such federal or state statute or regulation upon providiRg
Grantee with thirty (30) days written notice of its action setting forth the full text of
the amendment and identifying the sta#ute,. regulation, o� ordi�anc� req�iring #he
amendment. Said amendment shall become automatically effective upon
expiratio� of the notice period ur�less,, beTore expiration of �hat period, fhe
Grantee makes a written cal[ for negotiations over the terms of ti�e amendment.
�f the parties do not reach agreemerrt as to the terms of the amendment wiihin
thirty (30) days of t�e ca[I for Regotiations, t�e City may enact the proposed
amendment, by incorporating the Grantee's eoncems to the maxim�m extent the
City deems possible, or Grantee may terminate this agreement wi#ho�t further
liability or penalty subject to its prompt removaf of the Grantee Facilities in
compliance with applicable terms F�erein.
C. The City may terminate this Franchise upon thirty (30} days writt�n
notice to the Grantee, if the Grantee fails to comply wi#h s�ach amendment or
mod�cation within such thirty {30) day period.
Section 21. License, Tau and Other Charges
This Frar�chise shall not exempt the Grantee from any f�ture license, tax,
or charge which the City may hereinafter adopt pursuant to, au�ority granted to it
under state or federal Eaw for rever�ue or as reimbursemer�t for use and
or.cupancy of the Franchise Area
Section 22. Consequentiaf Damages Limitation
Notwithstanding any other pro�ision of tF�is agreement, in no even# shall
either party be liable for a�y special, incidental, indirect, puniti�e, reliance,
consequer�#ial or similar damages.
Section 23. Severability
If any portion of tliis Franchise is deemed inva�id, the remainder portior�s
shall remain in effect pro�ided the provision deemed invalid is not a material term
to this agreement.
Sectior� 24. Titles
Ordinance No. fi491
Franchise Agreement Na. 13-37
February 91, 2014
Page 14 0�15
ORD.A Page 50 of 201
TMe section titleS used herein are for reference onfy and should not be
used for the purpose af interpreting this Franc#�ise.
Section 26. Implementation.
The Mayor is hereby authorize� to implemerrt such administratirre
procedures as may be necessary to carry out the directions of this legislation.
Section 2fi. Termination.
Grantee shall �ha�e the right to terrriinate this agreement with respect to an
indivi�ual Franchise Area authorized �ere�nder., without penalty, upon one
hundred twer�ty {120) days prior written notice. In such e�ent, all applicab.le fees
and/ar costs set forth herein shall be eq�itably adjt�sted as of the effecti�e date of
termination
Section 27; Effective date.
Ti�is Ordinance shall take effect and be in force fi�e days ftom and after its
passage, appro�al �nd publication as pro�ided by law.
INTRODUCED: FEB 1 S 2014
PASSED:
APPRQVED:
1 �. ,�. . 1/ �. �_.._.
, , .. . .-
ATTEST:
D'elle E. Daskam, City Clerk
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Ordinance No. 6491
Franchise Agreement Na 'l3-37
February 11, 2044
Page 15 of 16
•'� �
Page 51 of 201
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February 11, 2014 T Ma6ile Faci[itia 3lydrolo$y PalEtical Boundaries Ttansponation
Page � of 1
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ORD.A Page 52 of 201
EXHIBIT "B"
GRANTEE FAC[LfTIES
EXISTING T-MQBILE FACILiTIES lN CITY OF AUBURN ROW
Site ID: SE4Q42A, "Peasley Canyan"
Location:
33043 46th Place South
Aubum, WA 98001
Descrip#ion: Telecommunications Facility consisting �f above ground radio equipment
cabin�ts located in a 12'x1.7' cedar wood fence enclosure in the Right of-
Way {ROW), with antennas oollocated on an existi�g 88' above�ground
wooden utility pole in th� ROUV with connecting underground conduit..
Site ID: SE04028B, Mauniain View Cemete .ry1PR
Location:
5605 S 324�` P�ace
Aubum WA 98001
Description: Telecommunica#ior� Facility consisfing of arttennas located on an exist�ng
75' above-groundround wood u#iiity pole in the Right of Way w�th
canne�ting �nderground conduit to the radio eq�si�ment cabine�s located
on ad;acent private property.
Ordinance No. fi491
Exhibit B
February 11, 2�14
Page 1 of 1
ORD.A Page 53 of 201
EXHIBIT "C"
GRANTEE SERVICES
SERVICES PROVIDED BY T-MOB[LE WtTH1N THE CITY OF AUBURN:
Telecamm�nications 5ervir.es authorized hy the Federal Comm�nications Commiss�o�;
inc�uding but not limited to the following:
THE TRANSMISSIQN, AMPLIFICATION AND RECEPTION OF RADIO
C4MMUNICATION SIGNALS, INC�UDtNG BUT N4T �IMITED TO THOSE RELATED
T0;
• VQICE,
• DATA,
• IMAGES AND VIDEO
• E-9111EMERGENCY ACCESS
• 3-G AN D 4-G
Ordinance No. 6491
Exhibit C
February 11, 2Q14
Page f of 1
ORD.A Page 54 of 201
s �
EXHIBIT "D"
STATEMENT 4� ACCEPTANCE
T-Mobile West LLC, A Delaware fimitsd �iability company, far ii�self; its successars and
assigns, her�eby accepts and agrees ta be bound by al1 larnr��l terms, conditians and
provisians: o# the Francfiise attached i�erebo and ir�c�rporated herein by this re#erence.
T-Mo�ile West LLC
A Delaware limited liabili�y, campa�y
By: Date: �����`f
Name: ,! .
Title: Area Qirector, Engineering & Operations
�f� 3l4I14
STATE QF WASHINGTON
)ss.
C�UNTY 4F KING )
On this � day of Yr.�ll , 2014, before me the undersigned, a Notary
Pubfic in and for the State of Washington, ;duly oommissianed a�d swam, psrsonal�y
appeared, Jay Noce#o of T-Mobife West LLC; the company that executed the within and
fvregoir�g ins#rument, and acknowledged ti�ie said instrumen# to be the free and
wlur�tary act and deed ofi said company, for the uses and pur�oses the�ein mer3tioned,
ar�d on aath stated that halshe ts authnrized to executa said ir�stnament.
IN WITNESS WHEREOF, I have hereurrto set� my hand and afftxed my official seal ort
the date hereinabave set farth. � .
1�...t, � JC.il�l�.
NOTARY PUBLIC in and far the State af
�Gl,r , residing at �„��, , ,
MY COMMiS5[ON EXPlRES
Ordinance No. 6491
Franchise Agraement No. 13-37
DATE 0912412D9 3
Page 9 of 1
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Agenda Subject:
Ordinance No. 6576, First Reading
Department:
CD & PW
AG EN DA BI LL APPROVAL FORM
Attachments:
Ordinanoe Na 6576
ExhibitsA & B
StafF Repa-t
Vianity Maps
Administrative Recommendation:
City Council adopt Ordinance No. 6576.
Background Summary:
Date:
November 25, 2015
Budget Impact:
$0
Schneider Homes Inc. has applied to the City for vacation of the right-of-way of the
south 137.85 feet of 64th Avenue South, south of South 300th Street, shown on
Exhibit "B". The applicant currently owns the adjacent parcel to the east and west and
is proposing to incorporate the right-of-way into development of the adjacent property.
The application has been reviewed by City staff and utility purveyors who have an
interest in this right-of-way. Through this review City staff has determined that the right
of way is no longer necessary to meet the needs of the City and could be vacated.
Ordinance No. 6576, if adopted by City Council, approves Vacation No. V2-15 and
vacates the right-of-way subject to conditions outlined in the Ordinance.
Reviewed by Council Committees:
Councilmember:
Meeting Date:
Staff: Snyder
January 4, 2016 Item Number: ORD.B
ORD.B AUBURN * MORE THAN YOU IMAGINED Page 57 of 201
ORDINANCE NO. 6 5 7 6
AN QRDINANCE �F THE CITY COUNCIL �F THE CITY OF
AUBURN WASHINGTON, VACATiNG RfGHT-OF-WAY OF
fi4T'-' AVENUE SOUTH, SOUTH OF SDUTH 340�" STREET,
WITHIN THE CITY OF AUBURN, WASHINGT�N
WHEREAS, the City of Auburn, Washingtan ("City"), #�as recei�ed a petition by not
less than two-tf�ir�s (2/3} of th�e owners of property adjacent to right-of-way located at the
south 'f 37.85 feet of 64th Avenue South, south af South 3�O�h S#reet, within the City
requesting vacation of t#�e same; and
WHEREAS, the City Council of the City of Auburn, Washingtor� ("City Council"),
has, after a re�iew of its needs for streets anci right-of-ways in the vicinity af the soutM
137.85 feet of 64t" Avenue South, south of South 300t" Street wi�hin #he City, determined
tha# consideration should be gi�en #o the vacatian of the same; and
WHEREAS, a public hEaring was held in connection wi#h the possible vacation,
with notice ha�ing been provided pursuant ta statute; and
WHEREAS, the City Council has considered all matters presented at t�e public
hearing on the proposed vacation, held on the �th day of January, 2016, at the Aubum
City Council Chambers in Auburn, Washingtan.
NOW, THEREF�RE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON DO ORDAIN as a non-cadified ordinance as follows:
Section 1. Vacation. That the right of way located at the sout� 137.85 feet of
fi4t'' A�enue South, south of South 3a0th Street, located witfi�in the City of Aub�rn,
Washington, iegally described as fo[lows:
Ordinance No. 6576
ROW Vacation V2-15
October 14, 2015
Page 1 of 5
ORD.B Page 58 of 201
That portion of #he north half of t�e northwest quarter of the
southeast quarter of the southeast quarter of Section 2,
Township 21 No�th, Range 4 East, W.M., in K�ng County,
Washir�gton described as follows;
Commencing at the northwest cornEr of said subdivsion;
thence N89°52'01"E, along the north line therEof, 30.01 feet to
the east line of the west 30.D0 feet of said subdivision; thence
SOa°58'36"W, along said east line 190.89 feet to the POINT
�F BEGINNING of the herein describec� tract; thence
continuing SO4°58'36"W, along said east line, 137.85 fee# to
the south line of said subdivsion; thence S89°48'39"W, along
said south line, 30.01 feet to thE west line of said subdi�ision;
thence N0�°58'36"E, along said west line 137.66 feet; thence
N89°48'39"E 18.33 feet to a point of #angency with a 358.00
foat radius curve to the left; thence easterly along said curve,
thraugF� a central angle o# 01 °52'12" a distance if 11 _fi8 feet to
the to THE POINT OF BEGINNlNG.
Cantains 4,131 t square feet, (1.0948tacres}
[Also identified as Exhibit A hereto.]
and as shown on the survey, a copy of which is attached hereto, mar�ced Exhibit "B" and
incorporated herein [�y this reference, the same is hereby vacated and the property lying in
said portion of right-of-way described hereinabave, shall inure and be�ang to those
}�ersons entitled to recei�e the property in acco�iiar�ce with RCW 35.79.040, canditioned
upon the following;
A. In accordance w�th RCW 35.79.030, t�e City reserves and grants said
reservation to Puget Sound Energy and Bonneville Power Administrataon (co�lectively
"Grantees"), a non-exclusive easements for access over, under and on the all pa�tions
of the �acated right-of-way as described abvve, subject to the following:
1. The developers of Wyncrest Division II and owners of the adjacent
Qrdinance No. 6576
ROW Vacation V2-15
Qctober 14, 2015
Page 2 of 5
ORD.B Page 59 of 201
prope,rty shall not in any way block, restrict or impede access and egress to or from said
Easeme�t Area, and/or in any way block, restrict or impede ful! use of the real property
within the Easement Area by the Grantees for the abo�e described purposes.
2. No buiiding, wall, rockery, fence, trees, or structure of any kind shall be
erected or planted, nor shall any fill material be placed within the boundaries of said
Easement Area, without the express written cansent of the Grantees. Na excavation
shall be made within Easement Area and the surFace level of the ground within the
Easemen# Area shall be maintained at the elevation as currentEy existing.
3. This easement shall be a covenant running with the ad�ac_ent praperty
parcels and burden said real estate, and shall be bindi.ng on the successo�s, heirs and
assigns of all parties hereto.
B. The easements as set out in Paragfaph A above, shall automatically
expire and shall be extinguished upon recordation and construction of an alternate
access easement to each of the Grantees.
C. In accordance with RCW 3�.79.0360 and ACC 12.48.085, compensation
to the City of Auburn, shall be made by the owner or owners of property adjacent
thereto in the total amount of Twenty Thousand Seven Hundred ($20,700.Oa) Dollars for
the fulk appraised value af the right-of-way, which �as been right-of-way for more than
twenty-five (25) years and for which public funds were expended. Th� Twenty
Thousar�d Seven H�ndred ($20,700.40) Doalars payment shall be made within one-
h�ndred and eighty (18Q) days of the date hereof
Ordinanc� Na. fi576
ROW Vacation V2-15
October 14, 209 5
Page 3 of 5
ORD.B Page 60 of 201
D. This vacation shall be effective upon completion of t�e provisions in
pa�agraph A through C, above. 4f the abo�e described pro�isions are not campletEd as
set forth abo�e, this �rdinance shall be null and void.
Section 2. Constitutionalitv or Invalidity. If any }�ortion of this Ordinance or
its application to any person or circumstances is heEd inva�id, the remainder of the
Ordinar�ce or #he application of the provisions to other persons or circumstances shall not
be affected.
Section 3. Imqlementation. The mayor is hereby autharized to implement
such administrative procedures as may be necessary to carry out the directives of this
lacation.
Section 4. Effecti�e Date. This 4rdinance shall take effect and be in force
fi�e (5) days from and after passage, approval, a�d pUblication as provided by law.
Section 5. Recordataon. The City Clerk is directed to record this
Ordinance with the office of the King County Auditor.
FIRST READING:
SEC4ND READING:
PASSED:
APPROVED:
NANCY BACKUS, MAYOR
Ordinance No. 6576
RQW Vacation V2-15
October 14, 2015
Page 4 of 5
ORD.B Page 61 of 201
ATTEST:
Da�ielle E. Daskam,
City Clerk
DatSiel B. Hei
City Attorney
PUBLISHED:
Ordinance No. 6576
ROW Vacation V2-15
October 1 �4, 2015
Page 5 af �
ORD.B Page 62 of 201
Exhibit A
1 ' ' 1
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DRS Project No. 12072
9/21/15
LEGAL DESCRIPTION: 64TH AVENUE S. RIGI-IT OF WAY VACATION
That portion of the north half of the northwest quarter of the southeast quarter of the
southeast quarter of Section 2, Township 21 North, Range 4 East, W.M., in King County,
Washington described as follows;
Commencing at the northwest corner of said subdivision; thence N89°52'O1 "E, along the
north line thereof, 30.01 feet to the east line of the west 30.00 feet of said subdivision;
thence S00°58'36"W, along said east line 190.89 feet to the POINT OF BEGINNING of
the herein described tract; thence continuing S00°58'36"W, along said east line, 137.85
feet to the south line of said subdivision; thence S89°48'39"W, along said south line, 30.01
feet to the west line of said subdivision; thence N00°58'36"E, along said west line 137.66
feet; thence N89°48'39"E 18.33 feet to a point of tangency with a 358.00 foot radius curve
to the left; thence easterly, along said curve, through a central angle of O1°52'12" a
distance of 11.68 feet to THE POINT OF BEGINNING.
Contains 4,131± square feet, (0.0948±acres)
R:1201210112072121DocumentslLegalsl64th Ave-S ROW-Vacation_12072.doc
ORD.B Page 63 of 201
I
S. 300"il°� ST.
NW. CORNER SE.
1 /4, SE. 1 /4
SEC. 2-21-4
LOT 1
KING C0. SHORT PLAT N0.
883127, REC. N0. 8412100260
PARCEL N0. 0221049108
PORTION OF 64TH
AVE. S. HEREBY
VACATED
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GRAPHIC SCALE
0 50' 100'
1 INCH = 100 FT.
Exhibit B
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N. LINE SE. 1/4. SE. 1/4 SEC. 2-21-4
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UNPLATTED
PARCEL N0. 0221049049
S. LINE N. 1/2, NW. 1/4, SE.
1/4, SE. 1/4 SEC. 2-21-4 �
UNPLATTED
PARCEL N0. 0221049180
CURVE RADIUS DELTA ANGLE ARC LENGTH
C1 358.00' 01'52'12" 11.68'
WYlOICR�ST DAViS/O/V //
64TH AVENUE S.
R/GHT OF WAY VACAT/ON
EXHIBIT
COPYRIGHT Q 2015, D.R. STRONG CONSULi1NG ENGINEERS INC.
Qau�i/YQ a�
ENG/NEERS P[ANNERS SURVEYORS
8107MAVENUE /ORIQANO, WA890.93
042u.ffi7.30&9 F476.ffi7.?423
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PROJECT SURVEYOR: SS
DRAFTED BY.• SRS
FIELD BOOK.• �R97
DATE.� 4/Y7/1'8
PROJECT NO.: 1Z(J77
SNEET i OF l
ORD.B Page 64 of 201
* �
CITY OF �
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WASHIIVGTON
Applicant:
Property Location
RIGHT-OF-WAY VACATION
STAFF REPORT
Right-of-Way (ROW) Vacation Number V2-15
Schneider Homes Inc.
Right-of-Way located at the south 137.85 feet of 64t'' Avenue South, south of South
300th St.
Description of right-of-way:
This ROW proposed for vacation consists of the south 137.85 feet of 64th Avenue South, south of South 300tn
Street. The proposed ROW is adjacent to Parcel No. 0221049108 on the west side, Parcel No. 0221049049 on
the east side, Parcel No. 0221049180 on the south side and City right-of-way on the north side. The west and
east adjacent parcels are owned by the applicant and the south adjacent parcel is owned by Puget Sound Energy
(PSE). The proposed area of ROW for vacation is approximately 4,131± square feet.
The ROW was originally deeded to King County as real property to settle a property tax debt on July 18, 1963.
The property was used as right-of-way by King County and formally converted to right-of-way by the County on
September 23, 1987. The ROW was annexed into the City of Auburn on January 1, 2008.
See Exhibits "A" and "B" for legal description and survey.
Proposal:
The Applicant proposes that the City vacate the above described right-of-way so that they can include the area in
development of the adjoining parcels. The right-of-way is to be incorporated into a building lot in the approved
preliminary plat of Wyncrest Division II.
Applicable Policies & Regulations:
• RCW's applicable to this situation - meets requirements of RCW 35.79.
• MUTCD standards - not affected by this proposal.
• City Code or Ordinances - meets requirements of ACC 12.48.
• Comprehensive Plan Policy - not affected.
• City Zoning Code - not affected.
Public Benefit:
• The vacated area may be subject to property taxes.
• The street vacation decreases the Right-of-Way maintenance obligation of the City.
Discussion:
The vacation application was circulated to Puget Sound Energy (PSE), Comcast, CenturyLink, Lakehaven Utility
District, Bonneville Power Administration, Tacoma Public Utilities, B.P. Olympic Pipeline and City staff.
Puget Sound Energy (PSE) — Comments and clarification of the location of existing facilities in 64th
Avenue South were requested from PSE several times but they have failed to respond with additional
information. It appears that PSE does not have any existing facilities in the proposed vacation area and
due to PSE's failure to respond with additional information it has been determined that a facilities
easement over the proposed vacation area is not needed and will not be reserved. PSE owns the parcel
adjacent to the south of the right-of-way and has obtained an alternate access easment across the
proposed plat, but has requested that an access easement be reserved until such time as an alternate
access is built.
1 of 3
11 /25/2015
�V,2�-15 �taff Report
rcl�
Page 65 of 201
2. Tacoma Public Utilities — Tacoma Water Supply does not access the second supply pipeline using 64th
Avenue South and will not require a reservation of easement when Auburn vacates the right-of-way.
3. B.P. Olympic Pipe Line Company — Comments were received from B.P. Olympic Pipe Line Company.
They have facilities located to the south of the adjacent PSE parcel but will not require an access
easement as they have other means of accessing their facilities from other locations.
4. Bonneville Power Administration (BPA) - Comments were received from Bonneville Power Administration.
They have facilities located to the south of the adjacent PSE parcel which they access across to reach
their facilities. An access easement over the proposed vacation area will need to be reserved until such
time as an alternate access easement from the developer is provided and built.
5. Comcast — Comcast has facilities attached to the PSE poles near the proposed area of vacation but as
long as the poles are not impacted by the vacation they do not require an easement.
6. CenturyLink — CenturyLink does not have any existing facilities located in the proposed vacation area and
does not require an easement.
7. Lakehaven Utility District — There are no existing Lakehaven water or sewer facilities in the proposed
vacation area and an easement is not required. Future service to this area will be provided under a
developer extension agreement between the developer and Lakehaven Utility District.
8. Water— No comments on Auburn Water. This area is served by Lakehaven Utility District.
9. Sewer — No comments on Auburn Sewer. This area is served by Lakehaven Utility District
10. Storm —No comments.
11. Transportation — No comments.
12. Planning — No comments.
13. Fire — No comments
14. Police — No comments.
15. Streets — No comments.
16. Construction —No comments.
17. Innovation and Technology — No comments
Assessed Value:
ACC 12.48 states "The city council may require as a condition of the ordinance that the city be compensated for
the vacated right-of-way in an amount which does not exceed one-half the value of the right-of-way so vacated,
except in the event the subject property or portions thereof were acquired at public expense or have been part of
a dedicated public right-of-way for 25 years or more, compensation may be required in an amount equal to the full
value of the right-of-way being vacated. The city engineer shall estimate the value of the right-of-way to be
vacated based on the assessed values of comparable properties in the vicinity. If the value of the right-of-way is
determined by the city engineer to be greater than $2,000, the applicant will be required to provide the city with an
appraisal by an MAI appraiser approved by the city engineer, at the expense of the applicant. The city reserves
the right to have a second appraisal performed at the city's expense."
RCW 35.79.030 states the vacation "shall not become effective until the owners of property abutting upon the
street or alley, or part thereof so vacated, shall compensate such city or town in an amount which does not
exceed one-half the appraised value of the area so vacated. If the street or alley has been part of a dedicated
public right-of-way for twenty-five years or more, or if the subject property or portions thereof were acquired at
public expense, the city or town may require the owners of the property abutting the street or alley to compensate
the city or town in an amount that does not exceed the full appraised value of the area vacated."
An appraisal by an MAI appraiser of the subject right-of-way was required to be submitted by the applicant. The
appraisal was reviewed and found to be acceptable. The appraisal values the right-of-way in an "ACROSS THE
FENCE VALUE" at $20,700.00. The right-of-way has been right-of-way for more than 25 years and was acquired
through deed to King County, for settlement of a property tax debt, as real property on July 18, 1963, converted to
right-of-way by the County on September 23, 1987 and annexed into the City of Auburn on January 1, 2008.
Recommendation:
Staff recommends that the street vacation be granted subject to the following conditions:
2of3
11 /25/2015
V2-15 Staff Report
ORD.B Page 66 of 201
1. An access easement shall be reserved for PSE and Bonneville Power Administration along the entire
length and width of the vacated ROW until such time as alternate access easements are provided and
built by the developer of Wyncrest Division II. No construction or grading of any kind may take place in
the easement area until such time as these easements are extinguished.
2. Staff recommends that compensation for the value of the right-of-way be required in the full amount of the
appraised value of $20,700.00 since the right-of-way has been right-of-way for more than 25 years and it
was originally acquired to settle a property tax debt with King County.
3 of 3
11 /25/2015
V2-15 Staff Report
ORD.B Page 67 of 201
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AG EN DA BI LL APPROVAL FORM
Agenda Subject:
Ordinance No. 6580, First Reading
Department: Atta c h m e nts:
Community Development StaffRepa-t
and Public Works OrdinanoeNa6580
Summary M atrix
Administrative Recommendation:
City Council adopt Ordinance No. 6580.
Background Summary:
Please see the attached Staff Report.
Reviewed by Council Committees:
Other: Legal, Community Development
Councilmember:
Meeting Date: January 4, 2016
Date:
December 29, 2015
Budget Impact:
$0
Staff: Snyder
Item Number: ORD.0
ORD.0 AUBURN * MORE THAN YOU IMAGINED Page 70 of 201
*
ci1-�r oF * AGENDA BILL APPROVAL FORM
AUBURN
WASHINGTON
Agenda Subject Ordinance No. 6580 Date:
2015 Annual Comprehensive Plan Amendments — City Initiated December 15, 2015
Plan Policy/Text Amendments, CPA15-0001
Department: Community Attachments: Budget Impact: N/A
Development & Public Works Ordinance No. 6580
Summary Matrix
See policy/text amendment
sections of the binder
Administrative Recommendation: City Council to introduce and approve Ordiance No. 6580
amending the Comprehensive Plan to include 2015 City-Initiated Annual Comprehensive Plan
Amendments.
Background Summary:
The City of Auburn adopted amendments to its Comprehensive Plan in 1995 in response to the
Washington State Growth Management Act (GMA) requirements, as amended. Since then the Auburn
Comprehensive Plan has been amended annually. This year the City is also updating the
Comprehensive Plan in response to the periodic update required under the WA State Growth
Management Act (GMA). The City adopted an updated Comprehensive Plan in response to the periodic
updates required under the GMA on December 14, 2015 by Ordinance No. 6584.
Comprehensive plan amendments can be initiated by the City of Auburn (city-initiated) and by private
citizens (privately-initiated). This year the city is initiating:
• Five policy/text amendments.
(No map amendments are currently being processed with this year's amendment process)
The city received three privately-initiated plan map amendments by the submittal deadline. However, the
processing of these has been postponed to allow the environmental review process to be completed, as
required. These are listed in the docket, but the applications are not included in the notebooks. These
will be considered at a future, yet-to-be-determined time.
This staff report and recommendation addresses Comprehensive Policy/Text (P/T) Amendments P/T # 1
through # 5. This is the only staff report associated with the annual comprehensive plan amendment
process.
❑ Arts Commission
❑ Airport
❑ Hearing Examiner
❑ Human Services
❑ Park Board
� Planning Comm.
Action:
Committee Approval
Council Approval:
Referred to
Tabled
mittees:
COUNCIL COMMITTEES:
❑ Finance
❑ Municipal Services
❑ Planning & Dev.
❑ Public Works
❑ Other
❑Yes ❑No
❑Yes ❑No
Councilmember:
Meetina Date: December 14. 2015
❑ Building
❑ Cemetery
❑ Finance
❑ Fire
❑ Legal
� Public Works
s t� uivisions:
❑ M&O
❑ Mayor
❑ Parks
� Planning
❑ Police
❑ Human Resources
Call for Public Hearing _/ /
Until / /
Until % /
Staff: Dixon
Item Number:
ORD.0 Page 71 of 201
Agenda Subject: CPA15-0001, 2015 Comprehensive Plan Annual Date: December 15, 2015
Amendments — Citv Initiated Plan Policv/Text Amendments
In terms of process, the Comprehensive plan amendments are initially reviewed during a public
hearing process before the City of Auburn Planning Commission, who then provides a
recommendation to the City Council for final action. City Council consideration and action on
the amendments generally occurs but is not required prior to the end of the year.
At its December 8, 2015 public hearing, the Planning Commission reviewed the following annual
comprehensive plan amendments:
P/T #1 — Incorporate Auburn School District Capital Facilities Plan
P/T #2 — Incorporate Dieringer School District Capital Facilities Plan
P/T #3 — Incorporate Federal Way School District Capital Facilities Plan
P/T #4 — Incorporate Kent School District Capital Facilities Plan
P/T #5 — Incorporate City of Auburn Capital Facilities Plan
The Planning Commission has forward its recommendation for approval to the City council on
all comprehensive plan amendments.
A. Findings
RCW 36.70A.130 (Washington State Growth Management Act (GMA)) provides for
amendments to locally adopted GMA comprehensive plans. Except in limited circumstances
provided for in State law, comprehensive plan amendments shall be considered by the city
or county legislative body no more frequently than once per year.
2. The City of Auburn established a June 5, 2015 deadline for the submittal of privately-
initiated comprehensive plan applications (map or policy/text). Notice to the public of the
filing deadline was provided on the City's website, the Seattle Times Newspaper, and sent
to a compiled "interested parties" notification list in May 2015. The City received three
privately-initiated plan map amendments by the submittal deadline. However, the processing
of these has bene postponed to allow the environmental review process to be completed, as
required by City and state law. These applications have been listed in the docket, but the
application materials are not provided in the notebooks. These applications will be
considered at a future unspecified time.
3. The City of Auburn received annual updates to the four school district Capital Facilities
Plans whose districts occur within the City of Auburn. These Capital Facilities Plans, as well
as the City's Capital Facilities Plan are referenced in Chapter 5, Capital Facilities, of the
existing Auburn Comprehensive Plan and Volume 3, Capital Facilities Element, of the
Updated Comprehensive Plan. The incorporation of the Capital Facilities Plans is
processed as Policy/Text (P/T) amendments.
4. The environmental review under the State Environmental Policy Act (SEPA) for the school
district capital facilities plans were prepared separately by each school district acting as their
own lead agency, as allowed by state law. Each district issued separate Determinations of
Non-Significance (DNS).
5. The environmental review under the State Environmental Policy Act (SEPA) for the
remaining amendment resulted in a Determination of Non-Significance (DNS) issued for the
City-initiated Comprehensive Plan Amendments on November 2, 2015 (City File # SEP15-
0030). The comment period ended November 16, 2015 and the appeal period ended
ORD.0 Page 72 of 201
Agenda Subject: CPA15-0001, 2015 Comprehensive Plan Annual Date: December 15, 2015
Amendments — Citv Initiated Plan Policv/Text Amendments
November 30, 2015. The City did not receive any comments in response to the issuance of
the Determination of Non-Significance (DNS).
6. Auburn City Code Chapter 14.22 outlines the process for submittal of privately-initiated
amendments and the general processing of comprehensive plan amendments as follows:
"Section 14.22.100
A. The planning commission shall hold at least one public hearing on all proposed
amendments to the comprehensive plan. Notice of such public hearing shall be
given pursuant to Chapter 1.27 ACC and, at a minimum, include the following:
1. For site-specific plan map amendments:
a. Notice shall be published once in the official newspaper of the city not
less than 10 calendar days prior to the date of public hearing;
b. Notice shall be mailed by first class mail to all property owners of
record within a radius of 300 feet of the proposed map amendment
request, not less than 10 calendar days prior to the public hearing;
2. For area-wide plan map amendments:
a. Notice shall be published once in the official newspaper of the city not
less than 10 calendar days prior to the date of public hearing;
b. Notice shall be mailed by first class mail to all property owners of
record within the area subject to the proposed amendment;
c. Notice shall be posted in at least two conspicuous locations in the
area subject to the proposed amendment not less than 10 calendar
days prior to the date of the public hearing.
B. Notwithstanding the above, the director may expand the minimum noticing
provisions noted above as deemed necessary.
C. Planning Commission Recommendation. The planning commission shall conduct
a public hearing on all potential comprehensive plan amendments and shall
make and forward a recommendation on each to the city council. The planning
commission shall adopt written findings and make a recommendation consistent
with those findings to the city council.
D. The city council, if it elects to amend the comprehensive plan, shall adopt written
findings and adopt said amendments by ordinance.
E. State Review. All comprehensive plan amendments considered by the planning
commission shall be forwarded for state agency review consistent with RCW
36.70A.106.
F. Any appeal of an amendment to the comprehensive plan shall be made in
accordance with Chapter 36.70A RCW. (Ord. 6172 § 1, 2008.)"
7. As provided in the City Code, the Comprehensive Plan amendments are initially reviewed
during a public hearing process before the City of Auburn Planning Commission, who then
provides a recommendation to the City Council for final action. City Council consideration
and action on the amendments generally occurs, but is not required, prior to the end of the
year.
8. Pursuant to RCW 36.70A.106, the proposed comprehensive plan amendments outlined in
this agenda bill were sent to the Washington State Office of Commerce and other state
agencies as required for the state review on November 6, 2015. The Washington State
Office of Commerce acknowledged receipt by letter dated November 9, 2015. No
comments have been received from the Washington State Department of Commerce or
other state agencies as of the writing of this report.
ORD.0 Page 73 of 201
Agenda Subject: CPA15-0001, 2015 Comprehensive Plan Annual Date: December 15, 2015
Amendments — Citv Initiated Plan Policv/Text Amendments
9. Due to the nature and limited number of policy/text changes, and the lack of private initiated
map amendments, the optional process for conducting a public open house was not
conducted as provided for in the city code.
10. The notice of public hearing was published on November 12, 2015 in the Seattle Times
which is at least 10-days prior to the Planning Commission public hearing scheduled for
December 8, 2015.
11.On December 8, 2015 the Planning Commission conducted a public hearing on the
proposed annual amendments as part of the process required by code.
12. On December 14, 2015 the City Council in a regular Study Session reviewed the proposed
annual amendments.
13. The following report identifies the Comprehensive Plan Map Policy/Text (P/T) amendments
that were considered by the Planning Commission at their December 8, 2015 public hearing
with the Planning Commission recommendation.
---------------December 8, 2015 Planning Commission Public Hearing ---------------------------
Comprehensive Plan Map Amendments (File No. CPA15-0001)
(No map amendments are currently proposed with this year's amendment process)
Comprehensive Plan Policy/Text Amendments (File No. CPA15-0001)
P/T #1
Incorporate the Auburn School District Capital Facilities Plan 2015 through 2021 into the City of
Auburn Comprehensive Plan.
Discussion
The Auburn School District has provided the City with its annually updated Capital Facilities
Plan (CFP) covering from 2015-2021. The CFP was adopted by the Auburn School District
School Board of Directors on June 8, 2015 and has been subject to separate SEPA review and
a Determination of Non Significance (DNS). Information contained in the School District CFP
serves as the basis for the City's collection of school impact fees on behalf of the school district.
The Planning Commission action is incorporation of the Auburn School District Capital Facilities
Plan into the City's Comprehensive Plan.
The CFP includes the following:
• six—year enrollment projections
• Auburn school district level of service standards
• An inventory of existing facilities
• The district's overall capacity of the 6-year period
• District capital construction Plan
• Impact fee calculations
A review of the Auburn School District's updated Capital Facilities Plan indicates the District
is requesting a change in the fee obligations. The net fee obligation for single-family
ORD.0 Page 74 of 201
Agenda Subject: CPA15-0001, 2015 Comprehensive Plan Annual Date: December 15, 2015
Amendments — Citv Initiated Plan Policv/Text Amendments
dwellings is proposed to be $5,330.88, an increase of $1,193.67 and the requested fee for
multiple-family dwellings is $2,625.01, a decrease of $893.16. The actual impact fee to be
established is set by ordinance by the Auburn City Council.
Planninq Commission Recommendation
Planning Commission recommends approval of the Auburn School District Capital Facilities
Plan 2015 through 2021 to the City Council
P/T#2
Incorporate the Dieringer School District Capital Facilities Plan 2016-2021 into the City of
Auburn Comprehensive Plan.
Discussion
The Dieringer School District has provided the City with its annually updated Capital Facilities
Plan 2016 - 2021. The CFP was adopted by the Dieringer School District Board of Directors on
June 15, 2015. The CFP has been subject to separate SEPA review and a DNS. Information
contained in the School District CFP serves as the basis for the City's collection of school
impact fees on behalf of the school district. The Planning Commission action is incorporation of
the School District Capital Facilities Plan into the City's Comprehensive Plan.
The CFP includes the following:
• Overview
• An inventory of existing facilities
• six—year enrollment projections
• standard of service
• Capacity projects
• Finance plan
• Impact fee calculations
A review of the Dieringer School District's updated Capital Facilities Plan indicates the
District is requesting a change in the fee obligations. The net fee obligation for single-family
dwellings is proposed to be $4,672.00, an increase of $1,402.00 and the requested fee for
multiple family dwellings is $1,518.00; a decrease of $207.00. The actual impact fee to be
established is set by ordinance by the Auburn City Council.
Plannin_q Commission Recommendation
Planning Commission recommends approval of the Dieringer School District Capital Facilities
Plan 2016-2021 to the City Council.
P/T #3
Incorporate the Federal Way School District 2016 Capital Facilities Plan into the City of
Auburn Comprehensive Plan.
Discussion
The Federal Way School District has provided the City with its annually updated Capital
Facilities Plan 2016. The CFP was adopted by the Federal Way School District School Board
July 28, 2015. The CFP has been subject to separate SEPA review and a DNS. Information
contained in the School District CFP serves as the basis for the City's collection of school
impact fees on behalf of the school district. The Planning Commission action is incorporation of
the School District Capital Facilities Plan into the City's Comprehensive Plan.
ORD.0 Page 75 of 201
Agenda Subject: CPA15-0001, 2015 Comprehensive Plan Annual Date: December 15, 2015
Amendments — Citv Initiated Plan Policv/Text Amendments
The CFP includes the following:
• Introduction
• Inventory of educational facilities & non-instructional facilities
• Needs forecast, existing & new facilities
• Six—year finance plan
• Maps of district boundaries
• Building capacities & portable locations
• Student forecast
• Capacity summaries
• Impact fee calculations
• Summary of changes from the 2015 plan
A review of the Federal Way School District's updated Capital Facilities Plan indicates the
District is requesting a change in the fee obligations. The net fee obligation for single-family
dwellings is proposed to be $2,899.00, representing a decrease of $2,275.00 and the
requested fee for multi-family dwellings is $506.00, a decrease of $1,328.00. The actual
impact fee to be established is set by ordinance by the Auburn City Council.
Plannin_q Commission Recommendation
Planning Commission recommends approval of the Federal Way School District's 2016
Capital Facilities Plan to the City Council.
P/T #4
Incorporate the Kent School District Capital Facilities Plan 2015-2016 to 2020-2021 into the City
of Auburn Comprehensive Plan.
Discussion
The Kent School District has provided its annually updated 2015-2016 to 2020-2021 Capital
Facilities Plan. The CFP was adopted by the Kent School District School Board on July 14,
2015 and has been subject to separate SEPA review and a DNS. Information contained in the
School District CFP serves as the basis for the City's collection of school impact fees on behalf
of the school district. The Planning Commission action is incorporation of the School District
Capital Facilities Plan into the City's Comprehensive Plan.
The CFP includes the following:
• Executive Summary
• Six-year enrollment projection & history
• District standard of service
• Inventory, capacity & maps of existing schools
• Six-year planning & construction plan
• Portable classrooms
• Projected classroom capacity
• Finance Plan, cost basis and impact fee schedules
• Summary of changes to previous plan
A review of the Kent School District's updated Capital Facilities Plan indicates the District is
requesting a change in the fee obligations. The net fee obligation for single-family dwellings
is proposed to be $4,990.00, representing a decrease of $496.00 and the requested fee for
ORD.0 Page 76 of 201
Agenda Subject: CPA15-0001, 2015 Comprehensive Plan Annual Date: December 15, 2015
Amendments — Citv Initiated Plan Policv/Text Amendments
multi-family dwellings is $2,163.00, a decrease of $1,215.00. The actual impact fee to be
established is set by ordinance by the Auburn City Council.
Planninq Commission Recommendation
Planning Commission recommends approval of the Kent School District Capital Facilities Plan
2015-2016 to 2020-2021 to the City Council.
CPM #5
Incorporate the City of Auburn's 6-year Capital Facilities Plan 2016-2021, into the City's
Comprehensive Plan.
Discussion
A Capital Facilities Plan is one of the comprehensive plan elements required by the Washington
State Growth Management Act (GMA) (RCW 36.70A). The GMA requires that a capital facilities
plan include an inventory of existing capital facilities (showing locations and capacities), a
forecast of future needs for such capital facilities, proposed locations and capacities of new or
expanded capital facilities, and a minimum of a six-year plan to finance capital facilities with
identified sources of funding. The proposed City of Auburn 6-year Capital Facilities Plan 2016-
2021 satisfies the GMA requirements for a capital facilities element as part of the
Comprehensive Plan.
Each comprehensive plan prepared under the GMA must include a capital facilities plan
element. More specifically, RCW 36.70A.070 (3) of the GMA requires the following:
"A capital facilities plan element consisting of:
(a) An inventory of existing capital facilities owned by public entities, showing the
locations and capacities of the capital facilities;
(b) a forecast of the future needs of such capital facilities;
(c) the proposed locations and capacities of expanded or new capital facilities;
(d) at least a six-year plan that will finance such capital facilities within projected
funding capacities and clearly identifies sources of public money for such
purposes; and
(e) a requirement to reassess the land use element if probable funding falls short
of ineeting existing needs and to ensure that the land use element, capital
facilities plan element, and financing plan within the capital facilities plan element
are coordinated and consistent. Park and recreation facilities shall be included in
the capital facilities plan element."
A capital facility is defined as a structure, street or utility system improvement, or other long-
lasting major asset, including land. Capital facilities are provided for public purposes. Capital
facilities include, but are not limited to, the following: streets, roads, highways, sidewalks, street
and road lighting systems, traffic signals, domestic water systems, storm and sanitary sewer
systems, parks and recreation facilities, and police and fire protection facilities. These capital
facilities include necessary ancillary and support facilities.
The memo dated November 10, 2014 prepared by the City's Finance Department contained in
the three ring binder highlights the major changes in the CFP from last year. The proposed City
of Auburn 6-year Capital Facilities Plan 2016-2021 is incorporated by reference in the
Comprehensive Plan, Chapter 5, Capital Facilities. This will be incorporated into the "Capital
Facilities Element" of the updated Comprehensive Plan (GMA required periodic update).
ORD.0 Page 77 of 201
Agenda Subject: CPA15-0001, 2015 Comprehensive Plan Annual Date: December 15, 2015
Amendments — Citv Initiated Plan Policv/Text Amendments
Planninq Commission Recommendation
Planning Commission recommends approval of the City of Auburn's 6-year Capital Facilities
Plan 2016-2021 to the City Council with the revised Pages 2, 3, 195, 197 and 202 as
recommended by staff.
ORD.0 Page 78 of 201
QRDINANCE NO. fi 5 8 0
AN �RDINANCE OF THE CITY COUNCIL �F THE CITY OF
AUBURN, WASHfNGTON, RELATING T� PLANNING;
ADOPTING ANNUAL COMPREHENSIVE PLAN TEXT
AMENDMENTS PURSUANT TO THE PROVISIONS OF RCW
,
CHAPTER 3fi.70A .
WHEREAS, on August 18, 1986, the City Council of the City of Auburn adopted
a Com�rehensi�e Plan by Resolution No. 1703 which includes a Map establishing the
location of the Comprehensive Plan Land Use Designations throughout the Gity; and
WHEREAS, an Aprif 17, 1995, the Auburn City Council adopted Com�rehensi�e
Plan Amendments by Resolution No. 2635 to comply with the Washington State Growth
Management Act; and
WHEREAS, on September 5, 1995, the Auburn City Council reaffirmed fhat
action by its adoption af Ordinance No. 47$$; and
WHEREAS, on December 14, 2015, the Auburn City Council adopted an
updated Comprehensive PEan which includes a Map establishing the location of the
Comprehensive Plan Land Use Designations #hroughout the City by Ordinance No.
fi584; and
WHEREAS, tl�e City of Auburn published in the 5eaftle Times Newspaper an
advertisement that the CEty was accepting compre#�ensive plan amendment appfications
and establisf�ed a deadline for submittal of June 5, 2�15; and
WHEREAS, the City of Auburn received privately-initiated map amendments
(File Nos. CPA14-0002, CPA14-0003 8 CPA15-0002) however these applications were
not complete for processing; and ,
�
--------------------------
Ordinance No. 6580
December 22, 2015
OK� 1
Page 79 of 201
WHEREAS, the City of Auburn initiated five text/policy amer�c�men#s (File No.
CPA15-000'�); and
WHEREAS, the Compre�ensi�e PEan textlpolicy amendments were processed
by the Comm�nity Developmenf & Public Works Department as propased Year 2015
annual amendments to the City of AubUrn Comprehensive Plan; and
WHEREAS, maintaining a current Capital Fac'ilities Plan is required af the City in
order to meet regulations of the Growth Management Act u,nder RCW 36.70A; and
WHEREAS, the environmental impacts of the proposecf Year 2015
Comprehensive Plan amendments were considered in accordance with procedures af
the State En�ironmental Policy Act (File No. SEP15-Q030) and were detetmined to
have no en�ironmental significance; and
WHEREAS, the proposed am�ndments were transmitted to t�e Washington
State Department of Commerce, Growth Management Services Di�ision and other
State agencies for the 60-day re�iew period in accordance with RCW 36.70A.14fi; anci
WHEREAS, after proper notice published in the City's official newspaper at least
ten (10) days prior to the date of hearing, the Auburn Planning Commission on
December 8, 20� 5, conducted a pu.blic hearing on the proposed amendments; and
WHEREAS, at the public hearing the Auburn City Planning Commiss.ion heard
and considered the public testimony and the evidence and exhif�ifs presented to it; and
WHEREAS, the Auburn City Planni�g Commission thereafter made
recommendations �o the City Council on tfi�e proposed Year 2015 annual
Compreh,ensivE Pia_n map and text amendments; and
Ordinance No. 6580
Dece.mber 22, 2015
o��� 2
Page 80 of 201
WHEREAS, on December 15, 2014, the Auburn City Council reviewed the
Planning Commission's recommendations to the City Council; and
WHEREAS, or� January 4, 2016, the Auburn City Council considered the
proposed Comprehensive Plan amendments as recommended by the C�#y af Aub�rn
Planning Comm.ission.
NOW, THEREFORE, THE C1TY COUNCIL OF THE CITY OF AUBURN,
WASHENGTON, D� ORDAIN AS FOLLOWS:
Section 1. The 2015 annua� Comprehensi�e Plan city-initiated Text
Amendments (CPA15-0001), as set forth in Exhibit "A" attached hereto and
i�corporated herein by reference, are adopted and appra�ed. The City Clerk shall �le
Exhibit "A" along with tY�is Ord�nance and keep them avaiEable for public inspection:
The full text of the Capital Facilities Plan of the City and t�e four school disirict's Capital
Facilities Plans are adopted with the City's Camprehensi�e Plan, copies of which shall
be on file with the Office of the City Clerk. The City Clerk shall file them along with this
O�dinance and keep them avaifable for public inspection. Council adopts both the
Planning Commission's recommendatians, dated Decembe.r 8, 2015, and the Findings
and Conclusions outlined in the December 15, 2015, staff report, attac�ed as Ex#�ibit.
:
Section 2. The 2�15 Comprehensi�e Plan amendments modify the
Comprehensive Plan adopteci on August 1$, 1986, by Resolution No. 1703; and
adopted by �rdinance No. 4788 on September 5, 1995; and adopted December 14,
2415 by �rdinance No. 6584.
Ordinance No. 6580
December 22, 2015
OI��� 3
Page 81 of 201
Section 3. The adopted Comprehensi�e Plan as amended is designated as a
basis for the exercise of substantive authority under th� Washington State
En�ironmental Policy Act by the City's respor�sible en�iron.mental official in accordance
with RCW. 43:2�1C.Q6�.
Section 4. If any section, subsection, sentence, clause, phrase or porkion of this
Ortlinance or any of the Comprehensive Plan amendments adopted herein, is for any
reason held invalid or unconstitutional by any Co�rt of competent juEisdictian, such
portion sha�l be deemed a separate, distinct and ir�dependent pro�ision, and such
holding shall not affect the validity of the remaining portions thereof.
Section 5. The Mayor is hereby authorized to implement such administ�ative
procedures as may be necessary to ca�ry out the directions of this legislation #o include
incorporating in#o one doc�ment the adopted Comprehensive Pla� map and text
amendments, attached hereto as Exhibit "A" and Exhibit "B" preparing and publishing
the amer�ded Comprehensive Plan.
FIRST READING:
SECOND READING:
PASSED:
APPRQVED:
Nancy Backus
MAYOR
ATTEST:
Danielle E. Daskam, City Clerk
O�dinance No. 6580
December 22, 2a15
0���4
Page 82 of 201
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Published:
Ordinance No. 8580
December 22, 2015
o����
Page 83 of 201
Exhibit "A"
The Auburn, Dieringer, Federa! Way, and Kent Schoo! District
Capifa! Facilities Plans
City of Auburn Capital Facilities Plan
(See "Comp. Plan Policv/Text Amendments" tab rn the workrng binder)
Ordinance No. 6580
December 22, 2Q15
0���6
Page 84 of 201
Exhibit "B"
Agenda bil!/staff repori dated December 15, 2495.
Ordinance No. 658Q
December 22, 2015
O f�L�� 7
Page 85 of 201
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AG EN DA BI LL APPROVAL FORM
Agenda Subject:
Ordinance No. 6581, First Reading
Department: Atta c h m e nts:
Community Development StaffRepa-t
and Public Works OrdinanoeNa6581
I mpact Fee Table Comparison fa- CFPs
Administrative Recommendation:
City Council adopt Ordinance No. 6581.
Background Summary:
Please see the attached staff report on Ordinance No. 6581.
Reviewed by Council Committees:
Other: Legal, Community Development
Councilmember:
Meeting Date: January 4, 2016
Date:
December 29, 2015
Budget Impact:
$0
Staff: Snyder
Item Number: ORD.D
ORD.D AUBURN * MORE THAN YOU IMAGINED Page 87 of 201
*
ACITY OF *
UBUi11�1 AGENDA BILL APPROVAL FORM
WASHINGTON
Agenda Subject: ZOA15-0005; Ordinance No. 6581 related to year Date: December 28, 2015
2016 revision of school district impact fees
Department: Attachments:
Community Development & Ordinance No. 6581
Public Works Dept. Table Comparison of Impact Fees
indicated in each CFPs
Administrative Recommendation:
Citv Council to discuss school impact fee ordinance revisions
Budget Impact:
(none)
Background Summary:
Title 19 (Impact Fees) of the Auburn City Code contains standards and regulations pertaining to the
imposition of impact fees in the City of Auburn. Specifically, Chapter 19.02 (School Impact Fees)
addresses the establishment, calculation, collection and amendment of school impact fees within the
municipal boundaries of the City of Auburn. The city originally established school impact fees in 1998 by
Ordinance No. 5078. Portions of four school districts lie within the City limits.
Pursuant to Code Section 19.02.060 (Annual Council Review) of the Auburn City Code, on at least an
annual basis, the Auburn City Council shall review the information submitted by the Districts pursuant to
ACC 19.02.050. The review shall be in conjunction with any update of the capital facilities plan element of
the city's comprehensive plan. The City Council may also at this time determine if an adjustment to the
amount of the impact fees is necessary.
The City of Auburn annual Comprehensive Plan Amendment process for 2015 included requests for City
approval of the Capital Facilities Plans of the four districts as follows:
* 2015 - 2021 Auburn School District Capital Facilities Plan;
* 2016-2021 Dieringer School District Capital Facilities Plan;
* 2016 Federal Way School District Capital Facilities Plan; and
* 2015-2016 through 2020-2021 Kent School District Capital Facilities Plan.
These requests were submitted in accordance with the provisions of Section 19.02.050 (Submission of
District Capital Facilities Plan and Data) of the Auburn City Code.
The School Districts' Capital Facilities Plans are contained in the working notebooks (three ring binders)
for the 2015 Annual Comprehensive Plan Amendments, distributed to the City Council prior to the 12-14-
15 study session.
Reviewed by Council & Committees: Reviewed by Departments & Divisions:
❑ Arts Commission COUNCIL COMMITTEES: ❑ Building ❑ M&O
❑ Airport ❑ Finance ❑ Cemetery ❑ Mayor
❑ Hearing Examiner ❑ Municipal Serv. ❑ Finance ❑ Parks
❑ Human Services � Planning & CD ❑ Fire � Planning
❑ Park Board ❑Public Works � Legal ❑ Police
� Planning Comm. ❑ Other ❑ Public Works ❑ Human Resources
Action:
Committee Approval
Council Approval:
Referred to
Tabled
Councilmember:
Meetina Date: Janua
r � ^,
❑Yes ❑No
❑Yes ❑No Call for Public Hearing _/_/_
Until /_/_
Until / /
Staff: Dixon
Item Number:
ORD.D ��B��N � MUR� THAN Y�U IM�age $8 of 201
Agenda Subject: Ordinance No. 6581 related to School Impact Fees Date: December 28, 2015
Definition
The city's code section 19.02 contains the city's regulations governing school impact fees. It provides the
following definition:
"Impact fee" means a payment of money imposed upon development as a condition of development
approval to pay for school facilities needed to serve new growth and development that is reasonably
related to the new development that creates additional demand and need for public facilities, that is a
proportionate share of the cost of the school facilities, and that is used for such facilities that
reasonably benefit the new development.
Related Authority
Other key points of the city's regulations include:
v The impact fee shall be based on a capital facilities plan adopted by the district and
incorporated by reference by the city as part of the capital facilities element of the city's
comprehensive plan, adopted pursuant to Chapter 36.70A RCW, for the purpose of establishing
the fee program.
v Separate fees shall be calculated for single-family and multifamily types of dwelling units, and
separate student generation rates must be determined by the district for each type of dwelling
unit.
v The fee shall be calculated on a district-wide basis using the appropriate factors and data
supplied by the district. The fee calculations shall also be made on a district-wide basis to assure
maximum utilization of all available school facilities in the district which meet district standards.
v As a condition of the city's authorization and adoption of a school impact fee ordinance, the city
and the applicable district shall enter into an interlocal agreement governing the operation of the
school impact fee program, and describing the relationship and liabilities of the parties. The
agreement must provide that the district shall hold the city harmless for all damages.
v On an annual basis (by July 1st or on a date agreed to by district and the city and stipulated in
the interlocal agreement), any district for which the city is collecting impact fees shall submit the
Capital facilities plan and supporting information to the city.
v Applicants for single-family and multifamily residential building permits shall pay the total
amount of the impact fees assessed before the building permit is issued, using the impact fee
schedules in effect, unless the fee has been deferred pursuant to City Ordinance No. 6341.
v The impact fee calculation shall be based upon the formula set forth in ACC 19.02.110, "Impact
fee formula". The formula is the city's determination of the appropriate proportionate share of the
costs of public school capital facilities needed to serve new growth and development to be funded
by school impact fees based on the factors defined in ACC 19.02.020. Based on this formula, the
"Fee Obligation" is the "Total Unfunded Need" x 50% = Fee Calculation.
The Capital Facilities Plans that were approved by the school boards contain proposed school impact
fees for each of the Districts. The requests for adjustment of the school impact fees are required to be
submitted concurrent with the submittal of the Capital Facilities Plans. A separate letter request is only
required to be submitted to the city when the fee adjustment is requested to increase.
Page 2 of 3
ORD.D Page 89 of 201
Agenda Subject: Ordinance No. 6581 related to School Impact Fees Date: December 28, 2015
Council Review and Decision
The setting of the actual fees occurs through separate Council action amending Chapter 19.02 of the
Auburn City Code. Section 19.02.060, (Annual Council Review) specifies the following:
On at least an annual basis, the city council shall review the information submitted by the district
pursuant to ACC 19.02.050. The review shall be in conjunction with any update of the capital
facilities plan element of the city's comprehensive plan. The city council may also at this time
determine if an adjustment to the amount of the impact fees is necessary; provided, that any
school impact fee adjustment that would increase the school impact fee shall require the
submittal of a written request for the adjustment by the applicable school district concurrent with
the submittal of the annual capital facilities plan pursuant to ACC 19.02.050. In making its
decision to adjust impact fees, the city council will take into consideration the quality and
completeness of the information provided in the applicable school district capital facilities plan
and may decide to enact a fee less than the amount supported by the capital facilities plan.
Section 19.02.060 establishes that the Auburn City Council is not obligated to accept the fees proposed
by the School Districts within their submitted Capital Facilities Plans and may establish fees that the
Council determines are more appropriate and consistent with the public's interest in reasonably mitigating
school impacts within the affected portion of the City.
Recommendation
The Dieringer School District submitted a proposed fee calculation of $5,330.88 for single family
residential and $2625.01 for multiple family residential based on their Capital Facilities Plan. Related to
this, the Pierce County Council by Ordinance No. 2015-76s adopted November 10, 2015 and effective
January 1, 2016, established a school impact fee for the Dieringer School District of $3,330.00 for single
family residential and $1,518.00 for multiple family residential. (The Dieringer School District is the only
school district common to both the jurisdictions of the City of Auburn and Pierce County). Pierce County
imposes the same maximum school impact fee for all school districts located in Pierce County.
To be consistent, it is appropriate to establish a fee applicable to Auburn for the Dieringer School district
that is the same as Pierce County's fee since it is more appropriate and consistent with the public's
interest in reasonably mitigating school impacts within the affected portion of the City. The draft
Ordinance will be prepared to reflect school impact fees that are the same as Pierce County's school
impact fee and differs from what the Dieringer School District has requested, as historically has been
done.
Scheduling of Actions
A discussion of the School District Capital Facilities Plans school impact fee changes was held at the City
Council Work Session on December 14, 2015 and an Ordinance and first reading of the proposed
ordinance No. 6581 is scheduled for January 4, 2016.
Page 3 of 3
ORD.D Page 90 of 201
ORDINANCE NO. 6 5 8 1
AN ORDINANCE OF THE CITY CDUNCIL OF THE CITY
OF AUBURN, WASHINGTQN AMENDING SECTIONS
19.02.115, 19.02.120, 19.Q2.130 AND 19.02.�4Q OF THE
AUBURN CITY CODE RELATING TO SCHOOL [MPACTS
FEES
WHEREAS, the City of Auburn has adopted a school impact fee ordinance and
collects school impact fees on behalf of r,ertain school districts located or located in part
witF�in the City of Auburn; and
WHEREAS, fhe Auburn Sc�ool District, Dieringer School District, Federal Way
Schoal District, and the Kent School District, each being located in part within the City of
Auburn, t�a�e provided tne City of Auburn with updated capital facilities plans to be
considered during the City's 2015 annual comprehensive p�an amendment process that
addresses among ot#�er thing�s, the appro�riate school impact fee for single family
residential dwellings ar�d multi- family residential dwellings for each district; arid
WHEREAS, the Auburn Schooi Qistrict issued a Deiermination of Non-
Significance for the 2015 - 2d21 Auburn School District Capital Facilities Plan May 22,
2015; the Dieringer School District issued a Determination of Non- Significance for the
2Q16-2U21 Dieringer School District Capital Facilities Plan June 1, 2D15; #I�e Federal
Way Schaol Diskrict issued a Determinatton of Non-Significance for the 2QZfi Federal
Way School District Capital Facil�ties Plan May 8, 2015 and December 25, 2015; and
Ordi�ance No. 65$1
December 28, 2015
Page 1 of 7
ORD.D Page 91 of 201
the Kent Schooi District issued a Determination of Non-Sig�ifcance for the 2015-2016
through 202�-2Q21 Kent School District Capital Facilities Plan July 17, 2�15; and
WHEREAS the City of Auburn issued a Determ�nation of Non-Significance �DNS}
an November 2, 2015 for the City of Auburn Year 2015 city-initiated comprahensi�e
plan map and texk amendmenfs (File No. SEP15-0030), and
WHEREAS, after praper notice publ.ished in the City's official newspaper at least
ten (10) days prior to the da#e of hearing, the Auburn Planning Commission on
December 8, 2015 conducted public hearings on the proposed Auburn School Distfict
2015-2021 Capital Facilities Plar�, the proposed Dieringer School District 2016 - 202't
Capital Facilities Plan; the �roposed Federal Way School District 2016 Capital Facilities
Plan; and for the proposed Kent School District 2015-241 fi through 2020-2a21 Capital
Facilities Plan; and
WHEREAS, following the conclusion of the public hearing on December 8, 2415,
and subsequent deliberations, the Auburn Planning Commission, followir�g individuaf
positive motions, made se�arate recommendations to the Auburn City Council on the
ap��oval of tfi�e Auburn Schaol Distric# 2015-2021 Capital Facilities Piar�, #he Dieringer
School District 201fi - 2Q21 Capital Facilities Ptan; t�e Federal Way School District 201fi
Capital Fac�lities Plan; and for the Kent School District 2�15-Z016 througf� 2020-2021
Capital Facilities Plan; and
WHEREAS, the Auburn City Council re�iewed the recommendations of the
Auburn Planning Commissior� on the schoal district capital facilities plans at a regularly
Ordinance No. 6581
December 28, 2015
Page 2 of 7
ORD.D Page 92 of 201
scheduled study session on December 14, 2015; and
WHEREAS, tt�e Auburn City Council considered the �ecommendations of the
Auburn Planning Commission an the capital facili#ies plans at a regularly scheduled
meeting on January 4, 2046, and a positi�e motion approved the Aubur� School District
201 �-2021 Capital Facili#ies Plan, the Dieringer School District 2016 - 2021 Capital
Facilities Plan; the Federal Way School District 201fi Capital Facilities Plan; and for the
Kent Sc{�ool District 2�15-2016 through 2�20-2021 Capital Facilities (Ordinance No.
fi584); and
WHEREAS, on December 14, 2Q15 the Aubum City Cou_ncil at a reg�larly
scheduled sfudy session reviewed amendme�ts to Titl� 19 (Impact Fees) and more
specifically, Chapter 19.02 (School Impact Fees) pertaining to school impact fees for
sing[e family residential dwelling units and multi-family dwelling units to be applied En the
City of Auburn for the Au�urn School District; Dieringer School District, Federal Way
School District, and the Kent School District; respectively, based on the aforementioned
capital facilities plans for each of these districts; and
WHEREAS, the Auburn City Code pro�ides for adjustments to school impact
fees based on a review of the capital faciltties plans for each of the districts; and
WHEREAS, Section 19.02.060 (Annual Cou�cil Re�iew) of the Auburn City Code
specifies that the Auburn City Council will in making its dec�sion to adjust impact fees
take into consideration the quality and comple#eness of the information pro�ided in the
applicable school district capital facilities plan ar�d may decide to enact a fee less than
Ordi�ance No. 6581
December 28, 20 � 5
Page �3 of 7
ORD.D Page 93 of 201
the amount sup{�orted by the capital facilities plan. NOW THEREFORE, THE CITY
COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN AS F�LLOWS:
Section 1. Amendment to the City Code. Section 19.02.115 of the Auburn City
Code is here�y amended to read as fo�lows.
19.02.115 Impact feE calculation and schedule for tY�e Dieringer School
District.
The impact fee calculation and schedule below is based upon a review of
the impact fee calculation for single-family resEdences and for muitifamily
residences set forth in the most recent version of the Dieringer School
District Capital Facili#ies Plan adopted by the Auburn city council as an
element of the Auburn comprehensi�e plan. The calculatio� is the
determination of the appropriate proportionate share of the costs of public
schaol capital #acilities needed to serve new growth and development to
be fUnded by school impact fees based on the factors definea� in ACC
� 9.02�.020.
Effective January 1, ��201fi, or the effective date of this ardinance
whichever is later, the schoo! impact fee shall be as follows:
Per Single-Family Dwellirtg Unit $��9 3� ,330.00
Per Multifamily Dwelli�g Unit $��A 1 5� , 1 s.oa
(Ord. 6445 §'� , 2Q13; 4rd. 6393 §�, 2011; Drd.. 6341 § 2, 2Q11; O�d.
6340 § 1, 2010; Ord. 6279 § 1, 2a09; Or�. 6214 § 1, 2008; Ord. 6134 § 1,
20Q7; Ord. 6060 § 1, 2D06; Ord. 595U § 2, 2005.)
Section 2. Amendment to the City Code. Section 19.02.120 of the Auburr� City
Code is hereby amended to read as follows.
19.02.120 Impact fee calculation and schedule for the Auburn Schooi
District.
The impact fee calculation and schedule is based upon a review o# the
impact fee calculation for single-family residEnces and for multifamily
Qrdinance No. fi5$1
December 28, 2015
Page 4 of 7
ORD.D Page 94 of 201
residences set forth in the mos# recent version of the Auburn School
Distric�'s Capital Facilities Plan adopted by the Auburn city council as an
element of the Auburn compr�hensi�e plan. The calculation is the
determination of the appropriate proportionate sha�e of the costs of public
sc#�ool capital facilities needed to serve new growth and develapment to
be funded by schaol impac# fees based on the factors defined in ACC
19.02.02Q.
Effective January 1, �2016, or the effecti�e date of this ordinance
whic�e�er is later, the school impac# fee shall be as follows:
Per Single-Family Dwelling Unit Q'',-�.� 5 330.88
Per Multifamily Dwelling Unit $�5�-�� 2 625.01
{Ord. 6445 § 2, 2Q"E3; Ord. 6393 § 2, 2011; Ord. 6341 § 2, 2011; Ord.
6340 § 2, 2010; Orc�. 6279 § 2-, 2009; Ord. 6214 § 2, 20�8; Ord. 6134 § 2,
20�7; Ord. 60fi0 § 2, 2006; Ord. 5954 § 1, 2005; Ord. 5793 § 1, 2003;
�rd. 5232 § 1, 1999.)
Section �3. Ame_r�dment ta the City Code. Section 19.02.130 of tF�e Auburn City
Cade is hereby amended as follows.
19.02.130 Impact fee calcula#ion and schedule for the Kent School
Dist�ict.
The impact fee calculation and schedule is based upon a re�iew of the
impact fee and calculation for single-family residences and for muitifamily
residences set forth in the most recent version of the Kent School District's
Capit_al Facifities Plan adopted by the Auburn city council as an element of
the Auburn comprehensive plan. The calculation is the determination of
the appropriate proportionate share af the costs of public school capital
facilities needed to serve new growth and de�elopment to be funded by
school impact fees based on th�e factors defined in ACC 19.02.d20.
Effective January 1, ��2016, or the effecti�e date of this ordinance
whiche�er is later, the school impact fee shall be as foliows:
Per Single-Family Dwelling Unit $�4�9A 4$ ,990.00
Per Multifamily Dwelling Unit $�-:88 2$ ,163•a�
4rdinance No. 6�81
December 28, 2015
Page 5 of 7
ORD.D Page 95 of 201
(Ord. 6445 § 3, 20� 3; Ord. 6393 § 3, 20� 1; Ord. 6341 § 2, 20� 1; Ord.
fi340 § 3, 201Q; Ord. fi279 § 3, 2009; Ord. fi214 § 3, 20D8; Ord. fi134 § 3,
2�07; Ord. 6060 § 3, 2006; Ord. 5950 § 1, 2005; 4rd. 5233 § 1, 1999.)
Section 4. Amendment fo the City Code. Section 19.D2.140 of the Auburn City
Code is hereby amended to read as follows.
19.02.140 Impact fee calculation and schedule for the Federal Way
School District.
The impact fee caiculation and schedule is based upon a review o# the
impac# �ee and calculation for si�gle-family residences and for multifamity
residences set forth in th�e most recent version of the Federal Way Schoai
�istrict's Capital Facilities Plan adopted by the Auburn city council as an
eiement of the Aui�urn comprehensive plan. The calculation is the
dete.rmination of the appropriate proportionate share of the costs of public
school capital facilit�es needed to serve new growth and development to
be funded by school impact fees b:ased on the factors defined in ACC
19.02.020.
Effective January 1, �2016, or the effecti�e date af t�is ordinance
whiche�er is later, tY�e school impact fee shall be as follows:
Per 5ingle-Family Dwefiing Unit ��1-99 2 899-00
Per Multifamily Dwelling llnit $��9 5� Ofi.O�
(Ord. 6445 § 4, 2013; Ord. 6393 § 4, 201 �; Ord. fi341 § 2, 2011; 4rd.
fi340 § 4, 2D10; Ord. 6279 § 4, 2009; Ord. 6214 § 4, 2008; Ord. 6134 § 4,
2007; Ord. fiQfiO § 4, 2006; Ord. fi042 §�, 2006.)
5ection 5. Constitutionality and I�validity. If any section, subsection sentence,
clau�se, phrase or portion o� th.is Ordinance, is for any reason heid inva{id or
uRconstitutional by any Court of competent j�risdiction such portion shali be deem�d a
Ordinance No. 6581
December 28, 2015
Page 6 af 7
ORD.D Page 96 of 201
separate, distinct and independer�t provision, and such holding shall not affect tne
�alidity of the remaining portions thereof.
Section 6. Implementation. The Mayor is authorized to implement such
administrative procedures as may be necessary to carry out the directions of this
legislation.
Section 7. Effective Date. This Ordinance sF�all take effect and be in force five
days from and after its passage, ap�roval and publication as pro�ided by law.
FIRST READING:
SECOND READING:
PASSED:
APPROVED:
NANCY BACKUS, Mayor
ATTEST:
DanieAe E. Daskam, City Clerk
iTi:��L • '
,. -
Daniel B. Heid, City Attorney
Published:
Qrdinance No. 6581
December 28, 2015
Page 7 of 7
ORD.D Page 97 of 201
School Impact Fee Proposal
(Effective Year 2016)
School
Multiple Family Single Family
District
Past 2015 CFP says: Requested Change? Amount Past 2015 CFP says: Requested Change? Amount
fee, Per Amount Proposed fee, Per Amount Proposed
ACC 19.02 in Ord # ACC 19.02 in Ord #
6581 6581
Auburn $3,518.17 $2,625.01 $2,625.01 Decrease $2,625.01 $4,137.21 $5,330.88 $5,330.88 Increase $5,330.88
Page 28 of Page 28 of
$893.16 $1,193.67
Dieringer $1,725.00 $1,518.00 $1,518.00 Decrease $1,518.00 $3,270.00 $4,672.00 $4,672.00 Increase $3,330.00
Page 13 of $207.00 Page 13 of
$1,402.00
Federal $1,834.00 $506.00 $506.00 Decrease $506.00 $5,171.00 $2,899.00 $2,899.00 Decrease $2,899.00
Way Page 28 & of Page 28 & of
30 $1,328.00 30 $2,275.00
Kent $3,378.00 $2,163.00 $2,163.00 Decrease $2,163.00 $5,486.00 $4,990.00 $4,990.00 Decrease $4,990.00
Page 31 of Page 30 of $496.00
$1,215.00
CFP = Capital Facilities Plan
ACC = Auburn City Code
11-6-15, Revised 12-28-15
ORD.D Page 98 of 201
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Agenda Subject:
Ordinance No. 6583, Second Reading
Department:
CD & PW
AG EN DA BI LL APPROVAL FORM
Attachments:
Ordinanoe Na 6583
Administrative Recommendation:
City Council introduce and adopt Ordinance No. 6583.
Background Summary:
Date:
December 28, 2015
Budget Impact:
$0
Ordinance No. 6583 authorizes an amendment to Chapter 19.04.040, Assessment of
Impact Fees, of the Auburn City Code.
The proposed amendment to the assessment of Traffic impact fees would allow
applicants to pay the lowest rate in effect between the time that a building permit is
submitted to the City and the time that the City issues the permit to the applicant. The
City updates the Traffic Impact Fees annually. These updates can be either an
increase or a decrease depending on the capacity projects included and the projected
future growth of the city. In addition, the process to obtain a building permit from the
City can vary depending on the complexity of the project and the number of other
permits that may be required and can take a few weeks to several months and can
span over the period of time the City may change the fee. The proposed code revision
would allow an applicant to benefit from a reduction in the fee that may occur prior to
their construction of any improvements.
Reviewed by Council Committees:
Councilmember:
Meeting Date:
Staff: Snyder
January 4, 2016 Item Number: ORD.E
ORD.E AUBURN * MORE THAN YOU IMAGINED Page 99 of 201
ORDINANCE NO. 6 5 8 3
AN ORDINANCE OF THE CiTY COUNCSL OF THE CITY OF
AUBURN, WASHINGTON, AMEN�DING SECTION 19.fl4.040
OF TH�E AUBURN CITY CODE, ENTITLED "ASSESSMENT OF
1MPACT FEES" FOR THE PURP�SE OF REVISING CODE
LANGUAGE TO CLARIFY INTENT
WHEREAS, a review of the current Auburn City Code pro�isions revealeci a need
to clarify the language regarding the assessment af the trafFc impact #ees; and
and
WHEREAS, the City Council updates the traffic impact fees on an an�ual basis;
WHEREAS, applicants may be within the building perm.it review process as the
time of a change in the feEs; anc�
WHEREAS, if the applicant has not begun construction of their project or paid the
trafFic impac# fee they should be able to take ad�antage of a retluction in the fee
amount; and
WHEREAS, it is appropria#e for the City #o ha�e the flexibility to allow the Iowest
ra#e in effect between the application and issuance of a building permit.
NOW, THEREFORE, THE CITY COUNCIL. OF THE CITY QF AUBURN,
WASHINGTON, DO ORDAIN A5 FOLLOWS:
Section 1. AMENDMENT TO C1TY CODE. That Section 19.04.U4� of the
Auburn City Code �e, and the same hereby is, amended to read as follows:
19.04.040 Assessment of impact fees.
A. Effec#i�e July 1, 2001, the city shall collect impact fees, based on
the fee schedule of the city of Auburn, from ar�y applicar�t se�king a b�ilding
permit from the city for any development acti�ity within the city.
B. Effective May 19, 20a3, where a change in use increases the trip
generation by more than one whole PM peak hour tr�p, t�e direc#or shall calculate
a transportation impact fee based on the increases in the trip generation rate.
�---------------- �
Ordinance No. 65$3 �
No�ember 18, 2015
O I-� �g� � of 2
Page 100 of 201
C. The director shali apply a fi�eavy truck adjustment factor to the
transportation impact fees for industrial land uses, addressing the percer�tage of
vehicle trips for s�ch uses made by trucks of three or more axles and the street
capacity useci by such trucks in comparison to other vehicles.
D. The amoUnt of impact fees shall be �a+�r^����^' �*based on the
lowest rate in effect betweer� the time an applicant submits a camplete
application for a building permit and #he time of permit iss�ance���^^ }"� �m^�^�
f�� �^�^^�+, ���c +��^ �^ a�d^4, or pursuan# to an independent fee calculation
accepted by the director pursuant to ACC 19.04.050, and adjusted far any credits
pursuant to ACC 19.04.Q60.
E. Payment of impact fees shall be made by the feepayer at the time
the building permit Es issued. The amaunt to be paid shall not be increasec� for
any appl.icant that submitted a complete application for the building permit before
the city established the irripact fee rates.
F. Appficants that have been awarded cred.its prior to the submittal of
the complete building permit ap�lication pursuant to ACC 19.04.060 shalf submit,
along with the complete building permit ap�lication, a copy of the letter or
certificate prepared by the director pursuant to ACC 19.04.Dfi0 setting forth the
dallar amount of the credit awarded. Impact fees, as determined after the
application of appropriate credits, shall be collected from #he feepayer at the time
the building permit is issued.
G. The department shall not issue a building permit unless and until
the impact fees have been paid or credit(s} awarded.
H. For complete sing�e-family building permit app�ications for new
develapment, redevelopment or a change in use, and prior to or at the time of
issuance of ar�y single-family residential building permit for a dwelfing unit that is
being constructed, the applicant may elect to record a co�enant aga�nst title to
the property on forms prepared and provided by the city ti�at requires payment of
transportation impact fees due and owing by providing for automatic payment
through esc�ow of these transportatiort impac# fees due and owing to be paid no
later than at time of closing of the sale of the unit or at final inspection or
issuance of certificate of occupancy or 18 months from the date of issuance of
the original building permit, whichever comes first. Failure to pay shall res�lt in
the fiollowing:
1. If 30 days after the city has sent the responsible pa.rty written
notification of its abligation to pay the charges established in this chapter the full
amount remains unpaid, the res�onsible party shall be subject to the
enforcement pro�isions of ACC 1.25.030 and 1.25.065. Written notification shall
be by regular and certifed mail and to the most current avaiEable co�tact
information on file with the city. Far the purposes of appfying ACC 1.25.030 and
1.25.065, the responsible party shall canstitute a pro�erty owner, t#�e
property{ies) for w�ich a permit(s} has been issued shal� constitute the
property{ies) on which the violatior� is occurring, and the impact fee amount
remaining unpaid shall constitute a violation occurring on the permitted
property(ies) under these sections.
Ordin�nce No. 6583
No�ember 18, 2015
o R U.�2 of 2
Page 101 of 201
2.. Any unpaid charges adopted by this chapter that are outs#anding
30 days from the date the charges are due shall constitute a lien against the
praperty(ies) for which a permit(s) has been issued in the amaunt of the unpaid
charges. In addition to the actions authorized in subsection (H}(1) of this section,
the city may record a lien agair�st the permitted prope�ty(ies) in the amo�nt of the
�npaid charges and may immediate�y suspend any permits previously issued for
the lot or unit associated with the current develo�ment activity and shaA limi# the
granting of any future permits far the lot or unit until such time that all outstanding
water, sanitary sewer and storm drainage develapmeR# c#�arges are paid in full.
3. The appeals process autharized in ACC 19.04.Q80 shall not apply
ta determinations made purs�aRt to this section.
I. For complete multifari�ily building permit applications for new
development, rede�elopment or a change in use, an� prior to or at the time of
issuance af any multifamily residential building permit t�at is being constructed,
the applicant may elect to record a covenant agains# title to the property o� forms
prepared and provided by the city that requires payment of transpartation impact
fees due and owing by pro�iding for automatic payment through escrow of these
transportation impact fees due and owing to be paid no later than at time of
closing of the sale of the unit or at final inspEction or issuance of cerfificate of
occupancy or 18 months from the date of issuance of the original building permit,
whichever comes first�. Failure ta �ay sh�a11 result in the following:
1. If 30 days after khe city has sent the responsible party written
not�cation of its obligation to pay the charges establisf�ed in this chapter the full
amount �emains unpaid, the responsible party shall be subject to the
enforcement pro�isions of ACC 1.25.030 and 1.25.065. Writter� notification snall
be by regular and certified ma'il and to the most current availabte contact
information on file with the city. For the purposes of applying ACC 1.25.030 and
1.25.065, the res�o.nsible party shal! coris#itute a property owner, the
property(ies) for which a permit(s) has been issued shall const�tute the
property(ies} on which the viola#ion is occ�rring, and the impact fee amount
remaining u�npaid shall constitute a violation occur�ing on the perm'itted
property(ies) under these sectians.
2. Any unpaid charges adopted by this chapter that are outstandir�g
3a days �rom the date the charges are due sfi�all constitute a lien against the
property(ies) for which a permit{s) has beer� iss�ed in the amou�t of the unpaid
charges. In addition to the actions a�thorized in subsection (I)(1) of this sect.ion,
the city may record a lien against t�e permitted property(ies) in #he amount of the
unpai� charges and may immediately suspend any permt#s previously issued for
the lot or unit associated with the curren# development acti�ity and shal{ {imit the
granting of any future permits for the lot or unit until such time that al! outstandir�g
water, sanitary sewer and storm drainage de�e�opment charges are paid in full.
3. The appeals �rocess authorized in ACC 19.04.0$0 shall not apply
to determinations mac�e pursuant #o this section.
J. For nonresidentia! development composed of �ew development,
redevelopment or a change in use and inclusi�e of commercial office a.nd retai!
uses, light and hea�y manufacfuring uses, but excluding warehousing and
Ordinance No. 6563
November 18, 20�5
��.aq.e 3 of 2
u-t
Page 102 of 201
distribution uses, and institutional de�elopmer�t including but nat limited to public
and private schools and colleges and hospitafs, and prior to the issuance of any
permit application and following the execution of a payment agreement an forms
prepared and provided by the city, the applicant may elect to pay transportation
impact fees due and owing, less any credits awarded, no later than prior ta
issuance of certificate of occupancy or 18 months from the date of issuance of
the original building permit, whiche�er comes first. Failure to pay shall result in
the following:
�. If 30 days after the city has sent the responsible party written
notification of its ob[igatian to pay the charges established in this chapter the full
amount remains unpaid, the responsible party shall be s�bject to the
enforcement provisions of ACC 1.25.030 and 1.25.065. Written notification shall
be by regular and certified mai�l and to the most cur�ent available contact
in#ormation on file with the city. For the purposes ofi applying ACC 1.25.D30 and
1_25.065, the responsible party shall constitute a property owner, the
property{ies} for which a permit�s) has been issued shall cons#itute the
property(ies) on w�ich the violation is occurring, ar�d the im�act fee amount
remaining unpaid shafl constitute a violation occurring on the permitted
property(ies) under these sections,
2. Any unpaid charges adopted by this chapter that are outstanding
30 days from the date the charges are clue shall constit�ie a lien against the
property(ies) for which a permit{s} has been issued in the amount of the unpaid
charges. In addition to the actions authorized in subsection (J)(1) of this section,
the city may record a lien against the permi�ted p�o�erty(ies) in the amount of the
unpaid charges and may immediately suspend any permits pre�iously issued for
the lot or unit associated with the current de�elopment acti�ity ar�d sha�l limi# the
granting of any f�ture permits for the lot or unit �nfil such time that all outstandi�g
water, sanitary sewer and storm drainage developmen# charges are paic� in full.
3. The appeals process authorized in ACC 19.04.Q80 shall not apply
ta determinations made pursuant to this section. (Ord. 6455 § 3, 2013; Ord. 6341
§ 3, 201 �; Ord. 6005 § 1, 2a06; Ord. 5763 § 1, 2003; Ord. 550fi § 1, 200�.)
Section 2. ADMINISTRATIVE IMPLEMENTATION. The Mayor is hereby
autharized to impiement such administrative procedures as may �e necessary to carry
out the directions of this ordinance.
Section 3. SEVERABILITY. If any portion of tfi�is Ordinance or its
applicafion to any person or circumstances is held invalicl, the remainder of the
Ordinance or the applicatian of the provision to ott�er persons or circumstances shall r�ot
be affected.
Ordinance Na. fi583
November 1 S, 2015
O��qe4of2
-t
Page 103 of 201
Section 4. EFFECTIVE DATE: This Ordinance shall take effect and be in
force fi�e (5) days from and after its passage, appro�al and publicatior�, as provided by
law.
FIRST READING:
S.EC�ND READiNG:
PASSED:
APPR�VED:
ATTEST:
NANCY BACKUS, MAYOR
Danielle E, Daskam, City Clerk
APP O ED AS TO F
,
niel B. ' , City A
PUBLISHED:
Ortlinarica No. 6583
November 18, 2015
O��g� 5 of 2
Page 104 of 201
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Agenda Subject:
Resolution No. 5193
Department:
Human Resources
AG EN DA BI LL APPROVAL FORM
Attachments:
Resalutian Na 5193
Exhibit A
Administrative Recommendation:
City Council adopt Resolution No. 5193.
Date:
December 24, 2015
Budget Impact:
$0
Background Summary:
For the purposes of setting forth the mutual understanding of the parties as to
conditions of employment for those employees for whom the city recognizes the Union
as the collective bargaining representative.
Reviewed by Council Committees:
Other: Executive Council
Councilmember:
Meeting Date: January 4, 2016
Staff: Roscoe
Item Number: RES.B
RES.B AUBURN * MORE THAN YOU IMAGINED Page 105 of 201
RESOLUTION NO. 5 1 9 3
A RESOLUTION OF THE CITY C�IJNCIL OF THE CITY OF
AUBURN, WASHiNGTON, AUTHORIZING THE MAYOR
T� EXECUTE AN AGREEMENT BETWEEN THE CITY OF
AUBURN AND THE INTERNATIONAL ASSOCIATION OF
MAC�HINISTS AND AEROSPACE W�RKERS DISTRICT
LODGE NO. 160
WHE.REAS, this Agreement is between the City of Auburn and the International.
Association of Machinists and Aerospace Workers, Local 160 for the purposes of setting
fortF� the mutual understanding of #he parties as to conditions of emp�oyment for those
employees for whom the City recognizes t#�e Internatio.nal Association of Machinists and
Aerospace Workers, Local 164 as the collective bargaining representative; and
WHEREAS, the Ci�y of Aub�rn recognizes the International Assaciation of
Machinists and Aerospace Workers, Local 160 as the exclusi�E bargaining
representative of all employees designated as International Association of Machinists
and Aerospace Warkers, Local 160.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, HEREBY RESOLVES as follows:
Section 1. That the Mayor is hereby aUthorizecl to execute the Co�lective
Bargaining Agreement between the City of Auburn and the International Assaciation of
Machinists and Aerospace Workers, Local 160, wfi�ich agreement shall be in substantial
conformity with the agreement attac�ed hereto as Exh.ibit A and incorporated herein by
this �e#erence.
Section 2. The Mayor is authorized #o implement such administra#ive
proc�dures as may be necessary to carry out the directives of this legislation.
Resolution Na. 5193
December 22, 2015
RE�g� 1 af 1
Page 106 of 201
Section 3. That #his Resolutio� shall take effect and be in fuN force upon
passage and signafures herean.
Dated and Signed this day of , 20
CITY OF AUBURN
NANCY BACKUS, MAYOR
ATTEST:
Danielle E. Daskam, City Clerk
AP
Daniel B. Hei
Resolution No. 5193
December 22, 2015
R��9� 2 of 2
Page 107 of 201
i
Exhibit A
FINAL AGREEMENT
NON-COMMISSIONED UNIT
CITY OF AUBURN
AND
INTERNATIONAL ASSOCIATION OF MACHINISTS
AND AEROSPACE WORKERS
DISTRICT LODGE NO. 160
i'��Z [�+��Z E:3
RES.B Page 108 of 201
AGREEMENT
NON-COMMISSIONED UNIT
BY AND BETWEEN
CITY OF AUBURN
/_1►1 �7
INTERNATIONAL ASSOCIATION OF MACHINISTS
AND AEROSPACE WORKERS
DISTRICT LODGE NO. 160
January 1, 2016 — December 31, 2018
PREAMBLE
This Agreement is between the City of Auburn (hereinafter called the "City") and the
International Association of Machinists and Aerospace Workers, District Lodge No. 160,
(hereinafter called "Union") for the purposes of setting forth the mutual understanding of
the parties as to conditions of employment for those employees for whom the city
recognizes the Union as the collective bargaining representative.
Effective: January 1, 2016
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TABLE OF CONTENTS
PREAMBLE
ARTICLE 1— RECOGNITION AND BARGAINING UNIT
ARTICLE 2 — UNION MEMBERSHIP
ARTICLE 3— UNION REPRESENTATION: ACCESS TO EMPLOYEES
ARTICLE 4 — NONDISCRIMINATION
ARTICLE 5— HOURS OF WORK AND OVERTIME
ARTICLE 6— CLASSIFICATIONS AND SALARIES
ARTICLE 7 — HOLIDAYS
ARTICLE 8 — VACATIONS
ARTICLE 9— HEALTH AND WELFARE
ARTICLE 10 — PENSIONS
ARTICLE 11 — JURY DUTY
ARTICLE 12 — SICK, DISABILITY, BEREAVEMENT, AND
EMERGENCY LEAVE
ARTICLE 13 — UNIFORM ALLOWANCE
ARTICLE 14 — EMPLOYMENT PRACTICES
ARTICLE 15 — MANAGEMENT RIGHTS
ARTICLE 16 — GRIEVANCE PROCEDURE
ARTICLE 17 — STRIKES OR LOCKOUTS
ARTICLE 18 — BULLETIN BOARDS
ARTICLE 19 — LEGALITY OF NEGOTIATED AGREEMENT
ARTICLE 20 — ENTIRE AGREEMENT
ARTICLE 21 — RETENTION OF BENEFITS
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ARTICLE 22 — INVESTIGATIONS, INTERROGATIONS, AND
APPLICATION OF DISCIPLINE
ARTICLE 23 — CIVIL SERVICE COVERAGE
ARTICLE 24 — TERMS OF AGREEMENT
APPENDIX A— STRAIGHT-TIME HOURLY RATE OF PAY
APPENDIX B— QUARTERMASTER SYSTEM LIST OF UNIFORMS
ITEMS/EQUIPMENT
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Article I
RECOGNITION AND BARGAINING UNIT
Section 1. The City recognizes the Union as the exclusive bargaining representative for
all employees designated by the classifications set forth in Appendix "A" and as certified
by the Public Employment Relations Commission Case No. 7784-E-89-1327, February
1989, excluding confidential employees, supervisors, and all other employees.
Section 2.
Full-Time, Reqular Employees: Full-time employee means any employee who
regularly works forty (40) hours or more per week for more than (4) consecutive
calendar months in a calendar year.
Part-Time, Reqular Employees: Part-time, regular employee is an employee who
regularly works less than forty (40) hours per week, but not less than thirty (30)
hours per week, for more than four (4) consecutive calendar months in a
calendar year. Such employees shall accrue vacation, sick leave, and holiday
benefits in the direct ratio that their regular work hours bears to forty (40) hours
per week.
All employees doing bargaining unit work must be members under one of the above
classifications. This provision shall not include temporary or occasional workers
providing no more than six hundred (600) hours are worked by these two (2) groups per
year.
Note: Salary step advancement for part-time employees shall be based upon
completed months of service as set forth in Appendix "A".
Article 2
UNION MEMBERSHIP
Section 1. All active, full-time employees covered by this Agreement shall become
members of the Union within thirty-one (31) days from the date of employment, and
shall remain members of the Union in good standing as a condition of continued
employment.
For the purposes of this section, membership in the Union shall be deemed to have
been maintained if the employee has not failed to tender his/her normal monthly dues
and/or initiation fee for an accumulative period of two (2) months.
Regarding regular, part-time employees, it is acknowledged that the Union will
determine the proportion of the regular monthly dues payable to the Union by such
employees, after considering the ratio that their regular work hours bears to forty (40)
hours per week.
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Section 2. Failure by an employee to abide by the above provisions shall constitute a
cause for discharge of such employee provided that when an employee fails to fulfill the
above obligation, the Union shall provide the employee and the City thirty (30) days
notification in writing of the Union's request to initiate discharge action. During this
period the employee may make restitution in the amount which is overdue. Should the
employee make such restitution, the request for discharge shall be withdrawn.
Section 3. PAYROLL DEDUCTION FOR UNION DUES. The City agrees to deduct
monthly dues required of the employees in the bargaining unit who voluntarily execute a
wage assignment authorization form. The City will deposit such dues with International
Association of Machinists and Aerospace Workers, District Lodge 160, IAM&AW, 9135
— 15t" Place South, Seattle, Washington, 98108. Upon issuance and transmission of
such dues and initiation fees to the Union, the City's responsibility shall cease with the
respect to such deductions. The Union and each employee authorizing the assignment
of wages for payment of Union dues hereby undertake to indemnify and hold the City
harmless from all claims, demands, suits, or other forms of liability that may arise
against the City for, or on account of, any deduction made by the wages of such
employee.
Section 4. POLITICAL ENDORSEMENTS. By remitting dues to the Union, the City
does not thereby endorse any expenditure, political or otherwise, made by the Union.
Article 3
UNION REPRESENTATION: ACCESS TO EMPLOYEES
Section 1. The Business Representative of the Union shall be allowed access to all
facilities of the City wherein the employees covered under this contract may be working
for the purposes of investigating grievances, provided such representative or steward
does not interfere with the normal work processes. No Union member or officer shall
conduct any Union business on City time and no Union meetings will be held on City
time or premises unless authorized by the Chief of Police, or designee. Off-duty
meetings may be scheduled and held on City premises.
Section 2. The City agrees that employees covered by this Agreement shall not be
discharged or discriminated against for upholding Union principles or for performing
duties authorized by the Union so long as these activities do not interfere with normal
work processes of the City.
Section 3. The employer will attempt to allow such members of the Union as may be
designated by the Union, not to exceed three (3), leave from duty without loss of pay for
the purposes of direct participation as members of the Union negotiating team in labor
negotiations with the City of Auburn including mediation.
Note: Chief retains right not to allow three (3) based on Department staffing needs.
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Article 4
NONDISCRIMINATION
It is mutually agreed that there shall be no discrimination of any protected class as
defined under the federal, state, and/or local laws, unless based upon a bonafide
occupational qualification. The Union, employees, and management representatives
shall work cooperatively to assure the achievement of equal employment opportunity.
Furthermore, employees who feel they have been discriminated against shall be
encouraged to use the grievance procedure set up under this Agreement prior to
seeking relief through other channels. Grievances under this Article shall not be subject
to step four of the grievance procedure (Arbitration).
Article 5
HOURS OF WORK AND OVERTIME
Section 1. The Chief of Police shall establish regular work schedules for the members
of the bargaining unit, such that the working hours for the employees shall be equivalent
to forty (40) hours per week on an annualized basis. The City will determine the
applicable workweeks in which to implement a 9x80 schedule. The following terms will
govern compensation and benefits:
a. Once scheduled for the 9x80 work schedule, no changes to the schedule
or "swaps" will be allowed unless agreed to by the City.
b. Holidays shall be nine (9) hour days. If the holiday falls on a day which
the employee is not scheduled to work, the employee will "bank" nine (9)
hours of holiday for use during the next calendar year, at the supervisor's
discretion (Christmas can be carried into January of the following year).
c. Every effort will be made by the employees to schedule personal
appointments on the "flex day" (day off). Exceptions shall be approved by
the Chief of Police (or designee during absences).
d. The City reserves the right to discontinue the 9x80 work schedule program
in whole or in part at any time based on operational needs or necessity.
The normal workday shall be up to nine (9) hours inclusive of the lunch period.
Section 2. Except as otherwise provided in this Article, employees shall be paid at the
rate of time and a half (1'/) of their hourly base rate for:
A. All hours worked outside the regularly assigned shift in any one (1) day;
B. All hours worked on a scheduled day off as a result of a rescheduled
holiday;
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C. The hours worked on the first and last day of a changed shift unless
written notice no less than seven (7) calendar days in advance of the shift
change from the employee's regular shift is given to the employee, or if
the employee only works one (1) day, without prior notice.
All overtime must be authorized by the Chief of Police, or designee. Where possible,
overtime shall be assigned equitably, subject to employee qualifications, as determined
by management, to perform the work. Employees shall have the first right of refusal of
any overtime opportunities within his/her respective job classifications, before it is
offered to bargaining unit employees in other classifications.
In the event of unscheduled overtime within the classification, overtime will first be
offered by seniority to on-duty employees holding the same classification. If additional
coverage is needed, the overtime will be first offered to the incoming employees holding
the same classification by seniority.
In the event of scheduled overtime, qualified employees will be asked to volunteer for
such, and assignment of the overtime will be in order of seniority. If an insufficient
number of employees volunteer, the scheduled overtime will be assigned on a
mandatory basis to qualified employees. In all cases in computing overtime, the
nearest one-quarter (1/4) hour shall be used.
Section 3. COMPENSATORY TIME. Payment for authorized overtime hours worked
shall be pay or compensatory time at the employee's option to be exercised at the time
earned.
Compensatory time shall be earned and accumulated at the rate of time and a half (1
'/) hours for each overtime hour worked, provided that the maximum allowable accrued
shall be one hundred (100) hours of compensation. Overtime worked beyond that cap
will be compensated by pay only. Effective November 30t" of each year, all
compensatory time accrued as of the 30t" of November of that year minus thirty (30)
hours will be cashed out at the employee's then current rate of pay (base plus longevity)
on the first payday of December. At the option of the employee, any or all of the
remaining thirty (30) hours may be paid at that time, but no more than thirty (30) hours
may be carried over into the following calendar year.
The City may require that employees use existing compensatory time, specifying the
date on which it is to be used. In the event an employee requests the use of accrued
compensatory time on a particular date, and the City does not grant that request, the
parties agree that one year is a reasonable time within which to schedule and grant time
off.
Section 4. CALLBACK. If an employee is called to duty or is scheduled for court during
off hours, he/she will be guaranteed a minimum of three (3) hours at time and a half (1
'/) times his/her hourly base rate, except where such attendance is an extension of the
end of his/her regularly scheduled shift, at which time normal overtime procedures will
apply.
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Section 5. Employees formally placed on standby status shall be compensated on the
basis of four (4) hours straight-time pay for eight (8) hours or fraction thereof. If an
employee is actually called back to work, normal overtime shall apply. Employees will
be compensated when called back either normal overtime or four (4) hours straight
time, which ever is greater.
The employer will pay for all hours from the time employees leave the Auburn Police
Department to the time they return to the Auburn Police Department for all court duty
outside the City limits.
Section 6. Unless otherwise required by the Fair Labor Standards Act (FLSA), the
employee agrees to waive any overtime compensation due as a result of the
employee's attendance at any Washington State Law Enforcement Training
Commission's Basic School or other authorized training programs. Compensation for
off-duty attendance at authorized training programs shall be agreed upon in advance
between the employee and the police administration, in accordance with the following
guidelines:
A. Employee shall be paid time and a half (1 '/) for training required by the
employer and in session beyond the employee's normally scheduled shift
in one (1) day.
B. Employee shall waiver any compensation for voluntary training programs.
C. TRAINING. The Employer agrees to provide a minimum of twenty (20)
hours of job-related training per calendar year.
Section 7. CANCELLATION OF COURT APPEARANCE. When an employee complies
with all departmental procedures on the day prior to a court appearance, and is notified
on the date that the court appearance is still scheduled for the next day, the employee
shall be entitled to receive the minimum payments provided by this Agreement, even if
the court appearance is thereafter canceled.
Section 8. REST AND LUNCH BREAKS. As a general rule, employees may combine
their 15-minute rest breaks with their 30-minute lunch break. Employees must be
immediately available by cell phone, Nextel, or other communicative device so that they
are able to return to the worksite within ten (10) minutes of contact. Failure to be able to
contact the employee may result in discipline.
Article 6
CLASSIFICATION AND SALARIES
Section 1. Employees covered by this Agreement shall be compensated in accordance
with the pay plan attached to this Agreement and marked Appendix "A". This Appendix
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shall be considered a part of this Agreement. Paydays for employees covered by this
Agreement shall be on the 8t" and 23rd of each month.
Section 2. All employees shall be reimbursed for educational expenses for job-related
classes or degrees, but such classes must have the prior approval of the Chief of
Police, or designee.
Section 3. Effective January 1, 1986, longevity pay shall be applied to the straight time
hourly rates of all employees covered by this Agreement who have completed
continuous service in accordance with the following schedule:
LONGEVITY PAY SCHEDULE
5 Years 2.0%
8 Years 3.5%
11 Years 5.0%
14 Years 6.5%
17 Years 8.0%
19 Years 9.0%
25 Years 10.0%
Section 4. Non-supervisory employees conducting training will be paid an additional
two percent (2%) of the employee's base pay for that time actually involved in training.
Section 5. Employees who have two (2) years of full-time experience in one of the
classifications covered by this Agreement, as determined by the Employer, within the
previous four (4) years of applying with the City of Auburn, may start at step 2 of that
classification's pay scale (i.e. two (2) years as a Police Specialist Supervisor may start
at Step 2 of the Police Services Supervisor classification, etc.).
Section 6. Shift Differential. Employees assigned to work a graveyard shift shall
receive a$0.50 per hour worked as a shift differential premium.
Article 7
HOLIDAYS
Section 1. The following twelve (12) days are designated as Holidays:
New Year's Day
President's Day
Memorial Day
Independence Day
Labor Day
Martin Luther King Day
Veteran's Day
Thanksgiving Day
Day After Thanksgiving
Christmas Eve
Christmas Day
Floating Holiday (1)
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Section 2. An employee who works on an observed holiday as set forth in Section 7.1
shall be compensated aid at the rate of two and one-half (2 '/) times the employee's
regular hourly rate of pay for each hour worked inclusive of holiday pay, or have the
option of receiving time and a half (1 '/) times his/her hourly base pay for hours worked
and receive one (1) holiday banked, to be taken at a time agreeable to the employee
and the Chief of Police, or designee. Hours worked in excess of the employee's regular
shift on that holiday shall be compensated (paid) at two and one-half (2 '/) of the
employee's base pay.
Any employee who works the following listed holidays shall be paid triple his/her base
rate, or may elect to be paid double his/her base rate in addition to receiving a day off in
lieu of that holiday:
1. Thanksgiving Day
2. Christmas Day
Section 3. For employees assigned to rotating shifts, the designated holidays shall be:
New Year's Day
Martin Luther King Day
Presidents' Day
Memorial Day
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Day After Thanksgiving
Christmas Eve
Christmas
January 1
Third Monday in January
Third Monday in February
Last Monday in May
July 4
First Monday in September
November 11
Fourth Thursday in November
Friday after Thanksgiving
December 24
December 25
For all other employees, the designated holidays shall be as specified in Section 1
above with the provision that whenever any designated holiday falls upon a Sunday, the
following Monday shall be the recognized holiday, and whenever any designated
holiday falls on a Saturday, the preceding Friday shall be the recognized holiday.
A holiday is defined as nine (9) hours. Employees may accrue up to a maximum of
thirty-six (36) hours of holiday leave, but in no event shall an employee accumulate in
excess of thirty-six (36) hours. Anything over thirty-six (36) hours will be cashed out.
Section 4. A request to take a Floating Holiday may be made by an employee at any
time prior to a shift assignment for which it is to be used. It may be approved by the unit
or shift commander so long as there remains the required number of personnel on duty
for that shift.
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Management will make a reasonable effort to accommodate the employee's request to
take a floating holiday, after considering the operational needs of the Police
Department. Early request (i.e., more than sixty (60) days prior to the date requested)
will be acted upon by the Chief, or designee, within thirty (30) days of the date the initial
request is made.
Section 5. Employees terminating service after completion of probation, other than for
just cause, shall receive compensation for vested unused holiday time. One floater will
be earned prior to July 1 St and one floater will be earned after July 1 St
Section 6. Based upon management approval, employees on non-rotating schedules
electing to work the holiday on the date listed in Article 7, Section 1, shall be paid the
employee's normal rate of pay and bank the holiday.
Article 8
VACATIONS
Section 1. Annual vacations with pay shall be granted to eligible employees on the
following basis; for service less than one (1) year vacation leave credit shall accrue at
the rate of one (1) working day for each month of continuous service commencing from
the date of most recent employment with the City; for continuous service of more than
one (1) year, vacation leave credit shall accrue at the following rate:
Upon completion of 1St year of continuous service 112 hours per year
Upon completion of 5t" year of continuous service 136 hours per year
Upon completion of 10t" year of continuous service 160 hours per year
Upon completion of 15t" year of continuous service 176 hours per year
Upon completion of 20t" year of continuous service 192 hours per year
An employee who terminates employment during the first six (6) months of employment
shall not be entitled to accrued annual vacation leave or payment.
Section 2. Each full-time and regular, part-time employee of the City shall be entitled to
accumulate unused, vacation leave not to exceed a maximum of two (2) year's annual
vacation leave.
All vacation leave shall be taken at a time mutually agreeable between the employee
and the Police Chief, or designee.
Section 3. Primary selection of vacation leave shall be made by January 1 St of each
calendar year. Secondary selection of vacation leave shall be made by March 1 St
Seniority within the employee's classification, in either case, shall be given preferences
when selections cannot otherwise be made on a voluntary basis.
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Section 4. Employees who have completed six (6) months of service, and are
separated from employment, shall be entitled to payment for vacation leave not taken
that has accrued to date of separation. In the event of the death of an employee in
active service with the City, accrued vacation leave that has not been taken shall be
paid in the same manner that salary due the decedent is paid for any vacation leave
earned in the preceding year, and in the current year, and not taken prior to the death of
such employees.
Section 5. The minimum increment vacation may be taken is one half ('/) hour.
Article 9
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A healthcare, dental care, orthodontics, and life insurance program shall be granted to
eligible, active, full-time employees and their dependents. Said programs and
arrangements shall consist of:
1. Association of Washington Cities Regence HealthFirst Plan (PPO) with
the City paying one hundred percent (100%) of the premium for
employees through the duration of the contract. The City shall pay eighty-
five percent (85%) of the premium for the employee's qualified and
eligible spouse and dependent(s), with the employee paying the remaining
amount of the monthly premium for his/her spouse's and dependents'
medical insurance for the duration of the contract.
2. Group Health Plan 2, $10 co-pay, with the City paying the premium up to a
maximum amount the City would pay for the employee's spouse and
dependent(s) if the employee selected Regence HealthFirst (PPO),
whichever is less, with the employee paying the remaining amount of the
monthly premium for his/her spouse's and each dependent's medical
insurance.
3. Washington Dental Service, Plan F, Northwest IAM Benefit Trust Dental
Plan #125; (It is understood between the parties that the Union and/or
employee is responsible for any difference in premium between the WDS
Plan F and Benefit Trust Dental Plan); or the Willamette Dental Plan. The
City will pay up to what it pays for the applicable Washington Dental
Service Plan F for those choosing Willamette.
4. Vision Service Plan (VSP), full family, $10 deductible;
5. Standard Life Insurance for $10,000; and
6. Association of Washington Cities Orthodontics (Plan 1).
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The City shall provide additional workers' compensation premiums now paid by Police
Service Specialists who perform matron duties on occasion.
AWC has already indicated that the HealthFirst (zero deductible) and the Group Health
(Plan 2-$10 copay) are terminating effective January 1, 2018. Therefore, effective
January 1, 2018, the eligible employees and their dependent(s) will automatically be
enrolled into the AWC HealthFirst 250 plan and/or the Group Health Plan 3$20 Co-
pay/$200 Deductible plan. With this change effective January 1, 2018, the City will pay
one hundred percent (100%) of the premium for employees through the duration of the
contract. The City shall pay ninety percent (90%) of the premium for the employee's
qualified and eligible spouse and dependent(s), with the employee paying the remaining
amount of the monthly premium for his/her spouse's and dependents' medical
insurance for the duration of the contract.
Additionally, all health reimbursement account contributions will cease, if the Affordable
Care Act continues to be counted towards the "Cadillac" tax provisions, regardless if it is
an employee or employer contribution. This change will become effective on December
31 St, 2017, if no agreement has been made between both parties related to the
replacement medical plan.
The Union agrees to continue to cooperate with the City in the study of cost
containment measures. The City may self-insure medical, dental, and/or vision
insurance coverage or select a new medical, dental, and/or vision insurance plan and
shall make every effort to maintain substantially equivalent benefits at a reasonable
cost. The City and the Union shall meet to explore alternative insurance coverage prior
to selecting any new medical, dental, and/or vision insurance plan. The City recognizes
its responsibility to bargain with the Union the impact of those decisions. The Union will
appoint one member to the City's Health Care Cost Containment Committee. This
committee will be activated effective July 1, 2017, and the Union will have an
opportunity to discuss changing medical plans for January 1, 2018 coverage.
The Union and current employees agree to the City's tobacco use policy as it currently
exists, or is hereafter amended, during the term of this Agreement.
VEBA: The City has adopted the VEBA Medical Reimbursement Plan. The City agrees
to provide a mandatory payroll deduction for this post Retirement Medical Insurance
Trust. All contributions made on behalf of each eligible employee will be consistent with
the terms and conditions of the collective bargaining agreement in effect at the time,
and based on the individual's annual base salary. It is understood that all defined
eligible employees will be required to sign and submit to the City a VEBA Membership
Enrollment Form.
The VEBA Plan shall be funded by a semi-monthly employee deduction, determined by
the collective bargaining unit, in an amount or a percentage (not less than $25.00 per
month) of the employee's base annual salary. The City will match the employee's first
one percent (1.0%) of employee base wages, semi-monthly.
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After December 31, 2017, all contributions to the VEBA plan will cease, if the Affordable
Care Act continues to be counted towards the "Cadillac" tax provisions. In lieu of the
1% contribution, the employer will increase base wages by 0.8%.
Article 10
PENSIONS
Pensions for employees and contributions to pension funds shall be provided in
accordance with the laws of the State of Washington for eligible employees.
Article 11
JURY DUTY
Time off with pay will be granted for jury duty. The employee must give the Chief of
Police, or designee, notice of call for jury duty at the time of notification. In order for the
employee to receive his/her regular rate of pay while serving on jury duty, the employee
must furnish a written statement from the appropriate public official showing the date
and time served. If the employee is scheduled for jury duty and is not needed for all or
a major part of the employee's regularly, scheduled shift, the employee will be on the
honor system to advise his/her supervisor of his/her status. Employees are not required
to return to the City per diem received for jury duty from the Court.
Article 12
SICK, DISABILITY, BEREAVEMENT, EMERGENCY, AND UNION LEAVE
Section 1. Sick leave credit shall accumulate for eligible employees at the rate eight (8)
hours per month. Sick leave is accumulated a maximum nine hundred and sixty (960)
hours, except as provided in Section 9 below. Sick leave credit may be used for time off
with pay for bona fide cases of incapacitating sickness or injury and for the period of
disability resulting from pregnancy or childbirth, or in accordance with the federal Family
and Medical Leave Act (FMLA) or Washington Family Care Act. Any employee found to
have abused sick leave by falsification or misrepresentation of same shall be subject to
disciplinary action.
a. Employees are required to use accrued paid time off during any state or
federal FMLA absence before using leave without pay.
b. FMLA usage computations will be based upon a rolling twelve (12) month
year beginning on the date an employee takes his/her first FMLA leave.
Section 2. A verifying statement of the employee's physician may be required by the
Chief of Police, or designee, at his/her option, whenever an employee claims sick leave
after the fourth claim in any calendar year or when the employee is absent for three (3)
days or longer.
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Section 3. Employees incapacitated by illness or injury shall notify the Chief of Police,
or designee, as far in advance as possible before he/she is to report to duty. During
periods of extended illness, employees shall keep the Chief of Police, or designee,
informed as to their progress and potential date of return to work.
Section 4. Employees shall be allowed up to three (3) days leave with pay for death in
the immediate family upon approval of the department head. Immediate family includes
the father, father-in-law, mother, mother-in-law, spouse, brother, sister, children,
grandchildren, grandparents, step-children, brother-in-law, sister-in-law, and in
situations of loco parentis of the employee. Upon approval of the Police Chief, or
designee, the employee may be eligible to use sick leave if bereavement exceeds three
(3) days.
Section 5. An employee shall be allowed use of family sick leave per applicable federal
and state laws.
A. For the actual time during an employee's regularly scheduled shift that the
employee must attend to the immediate needs of the dependent child,
adult child with a disability, spouse, registered domestic partner, parent,
parent-in-law, or grandparent with a serious or emergency health
condition.
B. An employee is expected to return to work as soon as he/she can be
relieved or is no longer needed.
C. In any incident of family illness/injury, the employee may be required to
furnish a doctor's certificate stating what the illness/injury is and that the
employee's presence is required.
Section 6. An employee may use up to twelve (12) work weeks of leave each year in
accordance with the provisions of the FMLA as follows:
An employee who has worked for the City at least twelve (12) months, including at least
1250 hours in the last twelve (12) months, may be entitled to twelve (12) workweeks of
paid/unpaid leave in any twelve (12) month period (1) to care for a newborn or newly
adopted child or newly placed foster child; (2) to care for a child, parent, or spouse who
has a serious or terminal health condition; or (3) to attend to a personal serious health
condition.
An employee must give the Chief of Police, or designee, at least thirty (30) days written
notice by completing a Leave Request Form, in advance of the anticipated date of the
leave when it is to begin (14 days notice for a child's terminal illness). If the employee is
unable to give the required notice, notice must be given, in writing, as soon as possible.
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While on FMLA, the employee must use all accrued, but unused leave, including sick
leave, vacation, compensatory time, and/or any other paid leave accrued prior to using
unpaid leave.
Use of the above paid leave will apply toward the twelve (12) work week entitlement,
and is not in addition to entitlement. Upon return from the leave, the employee is
entitled to return to the same, position held when the leave began unless the position
would have been eliminated had the employee not been on leave.
Care for a newborn or newly adopted child or newly placed foster child. FMLA leave
must be taken within twelve (12) months of the birth, adoption, or placement of a child.
If both parents are employed by the City, together they are entitled to a total of twelve
(12) workweeks of paid/unpaid leave under this paragraph. In the case of maternity,
any leave taken prior to the birth of the child for prenatal care, or inability to work prior to
the actual birth, will be assessed towards the twelve (12) workweek period.
Time loss due to disability prior to or following giving birth will be assessed towards the
twelve (12) workweek period. Intermittent or reduced leave for birth or placement for
adoption or foster care of a child may only be taken with Chief of Police approval.
Certification by a healthcare provider may be required.
Care of a child, parent, or spouse who has a serious or terminal health condition, or to
attend to a person serious health condition. Certification and/or second or third options
by a healthcare provider may be required for leave approval. Recertification may be
required every thirty (30) days. A fitness for duty certificate signed by the consulting
physician may be required upon return from leave.
Leave may be requested and granted on an intermittent basis or on a reduced work
week schedule if inedically necessary. The employee must provide medical certification
within fifteen (15) days of the date requested. The employee must attempt to schedule
his/her intermittent or reduced leave so as not to disrupt the City's operations.
Section 7. Employees hired after 1/1/93 shall not be eligible to receive any cash
payment for accrued sick leave at separation of employment for any reason. Upon
certification of death of the employee, the employee's estate shall be paid 25% of the
accrued, unused sick leave balance of the deceased employee at the employee's then
hourly rate.
Section 8. When an employee has accumulated nine hundred and sixty (960) hours, of
sick leave, sick leave shall continue to accumulate at the normal rate of eight (8) hours
per month until the end of the calendar year at which time all sick time accumulated by
the employee in excess of nine hundred and sixty (960) hours shall be paid at twenty
five percent (25%) of the employee's then hourly base rate.
Section 9. In order to provide an incentive for using sick leave only as necessary,
members of the unit shall be entitled to bonus days off for non-use of sick leave during a
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calendar year. Employees who use no sick leave in a calendar year shall be entitled to
two (2) bonus days off in the following year. Employees who use up to sixteen hours
sick leave in a calendar year shall be entitled to one (1) bonus day off. Use of bonus
days shall not affect sick leave balances.
Section 10. In the event of injury or illness for which an employee receives Workers'
Compensation, the employee shall be permitted to use accrued, sick leave to
supplement any time loss payment, proportionately, to make up any difference between
the amount of the time loss check and the employee's regular semi-monthly paycheck
(keeping the employee "whole"). If the total amount of sick leave payments plus time
loss payments exceeds the employee's regular semi-monthly wage, the employee shall
be required to "buy back" their used sick leave by submitting to the City, time loss
payments from the State.
When an employee suffers an injury sustained from an act of violence peculiar to the
duties and responsibilities of police support employees and is temporarily, totally
disabled and unable to work as the proximate result of that on-the job injury as covered
by Workers' Compensation Industrial Insurance laws, the City shall compensate the
affected employee for his/her regular basic salary (kept on salary as defined by RCW
51.32.090), as if he/she had continued to work, for a period not to exceed one thousand
and forty (1,040) hours from the initial injury, or the termination of the disability,
whichever comes first. This benefit shall only be granted prospectively from the date
Workers' Compensation benefits are applied for, unless the employee fails to make
timely application because of physical incapacitation or for reasons beyond the
employee's control.
Section 11. The City shall pay a five thousand dollar ($5,000) death benefit to the
estate of a non-commissioned employee in the bargaining unit who is killed in the line of
duty. Such payment shall be for funeral and related expenses.
Section 12. LEAVE FOR UNION BUSINESS. Employees shall be granted time off with
approval of the Chief of Police, or designee, without pay, to attend Union functions
approved by the District.
Article 13
UNIFORM ALLOWANCE
Employees hired on or after January 1, 1994, will be on the quartermaster system and
will be issued their full complement of uniforms/equipment according to the list of
agreed upon items attached to this Agreement as Appendix B. Thereafter, the City shall
replace required uniforms on an as needed basis, as determined by the Police Chief, or
designee.
Effective January 1, 1996, all employees on the quartermaster system will be entitled to
have up to four items cleaned per week.
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Effective January 1, 1997, all uniforms/equipment revert to the ownership of the City.
Article 14
EMPLOYMENT PRACTICES
Section 1. LAYOFF. Personnel reductions through layoff procedures and reinstatement
from such layoffs shall be based upon seniority by classification, with last hired to be
first laid off. If seniority is equal, layoffs will be based upon performance as determined
by the City. A laid off employee shall be eligible for rehire for a period of one (1) year
after one (1) year of service and two (2) years after two (2) or more years of service. An
employee who is recalled to work after layoff shall be reemployed in the same position,
and at the same step in the salary range, which he/she occupied at the time of layoff.
Recalled employees will retain the same seniority that they held at the time of layoff.
Section 2. SENIORITY. Whenever employees are appointed to a classification effective
the same date, seniority shall be established by the earliest date of hire with the City.
Section 3 WORKING OUT OF CLASSIFICATION. Any employee who is assigned to
perform the duties of a higher paying classification by the appropriate authority will be
compensated for hours worked in the performance of such duties at Step 1 of the pay
grade of the position being filled or the next highest step that ensures the out-of-class
employee approximately a five (5) percent increase to the maximum of the out-of-class
pay grade. The employee shall be compensated a minimum of four (4) hours at that
higher rate. When the work performed is more than four (4) hours in duration, the
employee shall be compensated for the entire shift.
Section 4. SUBCONTRACTING. In the event the City lays off a regular, full-time
employee and decides to subcontract the majority of that work the employee was doing
(during the period the employee retains layoff rights), the laid off employee will be given
the opportunity to accept a position with the subcontractor, if possible, with no loss in
wages. Notification and placement will be agreed upon between Union and City. If the
laid off employee rejects the opportunity when given, such employee's rights under this
provision shall cease.
Section 5. NEW TECHNOLOGY. If an employee is placed on layoff status due to new
technology and a subsequent job opening occurs within the bargaining unit in that
classification (or in a new classification created by such new technology), the laid off
employee that qualifies for such job shall be given first consideration. Such recall rights
shall be limited to the time frames set forth in Section 1 herein.
Section 6. DRUG TEST. No employee shall be required to take, or be subjected to,
any random alcohol or drug testing as a condition of continued employment, except for
reasonable cause or when otherwise allowed by law or any courts of competent
jurisdiction. The Union shall cooperate with the City in fulfilling its obligations to comply
with the Drug Free Workplace Act of 1988, and acknowledges the City's right to
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implement reasonable policies to assure compliance. Any employee disciplined or
discharged for violation of such policy shall have the right to appeal such action through
the grievance procedures.
Section 7. MILITARY LEAVE. An employee who is a member of the Washington
National Guard or a Federal Reserve Military Unit is entitled to leave from his/her duties
with full pay for official military duty in accordance with RCW 38.40.060. Such leaves
are in addition to any other leave or vacation benefits.
Section 8. LIE DETECTOR TEST. No employee shall be required to take, or be
subjected to, any lie detector test as a condition of continued employment.
Section 9. PROBATIONARY EMPLOYEES. All new employees shall serve a
probationary period of twelve (12) months. The union may not question the discipline or
dismissal of any probationary employee, nor shall the dismissal be the subject of a
grievance.
The probationary period for employees being transferred/promoted to another position
in the bargaining unit shall be six (6) months. If an employee's performance in the new
position is found to be unacceptable, the employee shall be returned to the position
from which the employee was promoted or transferred, if an opening exists.
Section 10. LIABILITY COVERAGE. The City will continue to provide liability coverage
consistent with the terms of the City's insurance policies and/or any self-insurance
program maintained by the City.
Article 15
MANAGEMENT RIGHTS
Section 1. DIRECTION OF WORKFORCE. The Union recognizes the prerogative of
the City to operate and manage its affairs in all respects in accordance with its lawful
mandate, and the powers of authority, which the City has not specifically abridged,
delegated, or modified by this Agreement are retained by the City, including but not
limited to, the right to contract services of any and all types. The direction of its working
force is vested exclusively in the City. This shall include, but not be limited to, the rights
to (a) direct employees; (b) hire, promote, transfer, assign, and train employees; (c)
suspend, demote, discharge, or take disciplinary action against employees for just
cause; (d) relieve employees from duty because of lack of work or other legitimate
reasons; (e) maintain the efficiency of the operation entrusted to the City, (f) determine
methods, means, work schedules, and personnel by which such operations are to be
conducted; (g) control the departmental budget and (h) take any actions necessary in
conditions of emergency regardless of prior commitments and to carry out the mission
of the agency; provided, however, that items (a) through (h) shall be consistent with City
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ordinances, personnel policies and procedures, and may be limited by the terms of this
Agreement.
Section 2. CITY RULES AND REGULATIONS. The City shall have the right to make
such reasonable direction, rules, and regulations as may be deemed necessary by the
City for the conduct and the management of the affairs of the City, and the Union
agrees that the employees shall be bound by and obey such directions, rules, and the
regulations insofar as the same do not conflict.
Section 3. APPLICATION OF POLICIES AND PROCEDURES. Rules and regulations
shall be made available by the City in writing to all employees. Formal disciplinary
action against an employee for violation of Police Department policies and procedures
may be subject to the grievance procedure.
Article 16
GRIEVANCE PROCEDURE
Section 1. For the purpose of the Agreement, the term "grievance" means any dispute
between the Employer and the Union concerning an alleged breach or violation of this
Agreement.
Step 1. An alleged grievance shall be taken up with the employee's immediate
supervisor and shift commander within ten (10) working days of its alleged
occurrence. The parties agree to make every effort to settle the grievance
promptly at this level.
In the event the grievance is unresolved, the Union and employee shall process
the grievance to Step 2 of the Grievance Procedure contained herein within ten
(10) days of the meeting with the employee's immediate supervisor.
Step 2. The grievance shall be reduced to written form, and sent to Human
Resources, by the aggrieved employee stating the section of the Agreement
violated and explaining the grievance in detail and remedy sought. The
employee and the Union representative shall present the written grievance to the
Division Commander, Human Resources Director, and the Chief of Police. The
Chief of Police, or designee, will conduct a meeting within five (5) working days
of receipt of the written grievance. The Chief of Police shall make a decision on
the matter in writing within ten (10) working days from such meeting. Copies of
the Chief's decision will be furnished to the aggrieved, the Union representative,
and the Director of Human Resources. Grievances involving suspension,
demotion, or discharge shall begin at Step 2.
Step 3. A grievance remaining unresolved after the decision has been rendered
in Step 2 shall be transmitted to Human Resources in writing within ten (10)
working days whereupon the Mayor shall conduct an investigatory hearing within
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five (5) working days of the receipt of the written grievance. The Mayor shall
render a decision within five (5) working days of such hearing.
Step 4. Should the grievance not be resolved in Step 3 and should further
consideration be desired by the grievant, a written notification requesting
arbitration must be filed with the Mayor within ten (10) working days. The parties
shall mutually select a disinterested third party to serve as Arbitrator. In the
event the Employer and Union are unable to agree on an Arbitrator, the Arbitrator
shall be selected by the process of elimination from a panel of seven (7)
Arbitrators furnished by the American Arbitration Association (AAA). The order of
elimination shall be determined by flip of coin. The request to AAA shall state the
issue to be decided. The Arbitrator shall confine himself/herself to the precise
issue submitted for arbitration and shall have no authority to determine any other
issues not so submitted to him/her. The Arbitrator shall have jurisdiction and
authority only to interpret, apply, or determine compliance with the specific terms
of the Agreement and shall not have jurisdiction to add to, detract from, or alter in
any way, the provisions of this Agreement. The decision within the jurisdiction of
the Arbitrator shall be final and binding upon both parties. The parties shall
evenly divide the costs of the Arbiter and any AAA services or charges with each
party paying its own costs. If both parties desire a stenographic record, the
expenses of the same shall be borne equally. If only one party desires a
stenographic record then that party shall pay the costs of the preparation of its
own copy and one for the Arbiter and the declining party shall not be a provided a
copy.
Utilization of the grievance procedure (including arbitration) by the Union, or any
employee, shall constitute an election of remedies and a waiver of any and all
rights by the appealing employee, Union, and all persons it represents, to litigate
or otherwise contest the appealed subject matter in any court or other available
forum. Likewise, litigation or other contest of the subject matter in any court or
other contest of the subject matter in any court or other available forum shall
constitute an election of remedies and a waiver of the right to arbitrate the matter.
Section 2. Any time limits stipulated in the grievance procedure may be extended for
stated periods of time by the appropriate parties by mutual agreement in writing.
Pending final decision of any grievance by any of the above procedures, work shall
continue without interruption.
If the Union steward or employee contacts the employee's supervisor within the Step 1
timeframes and orally identifies an issue as a grievance, the grievance shall be
considered timely. The Union or employee shall reduce such grievance to writing as
soon thereafter as possible, if the issue is not resolved.
Section 3. Any grievance that involves or affects a significant portion of the employees
in the bargaining unit may be introduced by the Union in written form to the Chief of
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Police as set forth in Step 2 of the grievance procedure, and processed as set forth
therefrom.
Section 4. Election of Remedy — An employee may elect to either pursue an appeal to
the Civil Service Commission or continue with the contractual grievance procedure, but
not both. In the event the grievance is unresolved after the Step 1 meeting, the Union
and/or employee shall determine whether to appeal the grievance through the Civil
Service Commission or process the grievance to Step 2 of the grievance procedure
contained herein within five (5) days of the meeting with the employee's immediate
supervisor. Should the employee choose to file an appeal with the Civil Service
Commission, the employee shall provide the Employer and the Union with written notice
of such election.
If an employee chooses to appeal through the Civil Service Commission, he/she shall
not be represented by the Union. The employee and/or Union must comply with the
time requirements for submitting an appeal and/or grievance as provided for in the
Agreement or applicable rules.
Article 17
STRIKES OR LOCKOUTS
During the term of this Agreement, neither the Union nor any employee shall cause,
engage in, sanction, encourage, direct, request, or assist in a slow-down, work
stoppage, interruption of work strike of any kind, including a sympathy strike, refusal to
perform any customarily assigned duties, sick leave absence which is not bona fide, or
other interference with City functions by employees under this Agreement, against the
C ity.
The Union and its representatives will undertake every reasonable measure to prevent
and/or terminate all such strikes, slow-downs, or stoppage of work. Any concerted
action by any employee shall be deemed a work stoppage if any of the above activities
has occurred.
The City may discipline or discharge any employee who violates this Article. This
remedy shall not be exclusive of any other remedy available to the City. The sole
question which may be processed through the grievance and arbitration procedure in
the event of discipline or discharge for violation of this Article is whether in fact the
employee did violate this Article. During the term of this Agreement, the City shall not
cause, permit, or engage in any lockout of its employees. The employee, Union, and
City shall comply with applicable State Law pertaining to strikes or lockouts.
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Article 18
BULLETIN BOARDS
The City shall permit the reasonable and lawful use of bulletin boards by the Union for
the posting of notices relating to official Union business.
Article 19
LEGALITY OF NEGOTIATED AGREEMENT
Should any term or provision of this Agreement be in conflict with any State or Federal
statute or other applicable law or regulation binding upon the Employer, such law or
regulation shall prevail. In such event, however, the remaining terms and provisions of
this Agreement will continue to full force and effect. No City Ordinance or Resolution
shall modify or change any Article of this Agreement during the life of this Agreement.
If any Article or Section of this Agreement shall be held invalid by operation of law or by
any tribunal of competent jurisdiction, or if compliance with or enforcement of any Article
or Section shall be restrained by such tribunal, the remainder of this Agreement shall
not be affected thereby, and the parties shall enter into immediate collective
negotiations for the purpose of arriving at a mutually satisfactory replacement for such
Article or Section.
Article 20
ENTIRE AGREEMENT
The Agreement expressed herein in writing constitutes the entire Agreement between
the parties and no oral statement shall add to or supersede any of its provisions.
However, additions, deletions, and/or modifications to this Agreement may be made
during its term by mutual agreement of the parties. Such agreements shall be
supplemental to this Agreement, signed and dated by both parties.
Article 21
RETENTION OF BENEFITS
This Agreement shall not operate to reduce any benefits not specified in this
Agreement, which are currently enjoyed by any of the employees in the bargaining unit,
i.e.,:
1. Less than one (1) full day's compensatory time off may be taken with
verbal approval of the Shift Commander or Unit Commander.
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2. Availability to the Chief of Police or other administrative personnel by an
individual employee, under appropriate circumstances, need not follow
chain of command.
3. Direct access to the Chief of Police or other administrative personnel by
the Union representatives shall be permitted to discuss employer-
employee problems with the chain of command.
Article 22
INVESTIGATIONS, INTERROGATIONS, AND APPLICATION OF DISCIPLINE
Employees subject to investigation of alleged wrongdoing will be notified in writing of the
outcome of the investigation and finding within forty-eight (48) hours after completion of
such investigation and finding.
Employee Protection. All employees within the bargaining unit shall be entitled to the
following protection, which shall be consistent with the policies and procedures of the
City of Auburn. The wide ranging powers and duties given to the employer and
employees involve them in all manner of contracts and relationships with the public and
other City of Auburn employees.
Application of Discipline. Any formal discipline of employees shall be applied by the
Chief of Police, or his/her designees. Discipline shall include, but not necessarily be
limited to, oral warnings, written warnings, suspensions, demotions, or discharge forjust
cause. No employee covered by this Agreement shall formally discipline another
employee, except an employee in the bargaining unit who is formally vested with such
authority by the Chief of Police, or his/her designee.
An employee subject to discipline shall be afforded the right to have the Union Steward
and/or Union representative present, if requested by the employee.
Employee warning letters shall be provided to the employee and the Union, when
requested by the employee.
Investiqations and Interroqations.
A. The employee shall be informed in writing of the nature of the investigation
and whether he/she is a witness or a suspect before any interrogation
commences, including information necessary to reasonably apprise
him/her of allegations of such complaint.
B. Any interrogation of an employee shall be at a reasonable hour, when
employee is on duty unless the exigencies of the investigation dictate
otherwise. Where practicable, interrogations shall be scheduled for the
daytime.
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C. The interrogation (which shall not violate the employee's Constitutional
rights) shall take place at a City facility, except when impractical. The
employee shall be afforded an opportunity and facilities to contact and
consult privately with the Union Steward and/or Union Business
Representative before being interrogated. The Union Steward and/or a
Union Business Representative shall be present during the interrogation, if
requested by the employee, but may not participate in the interrogation
except to counsel the employee in private.
D. The questioning shall not be overly long and the employee shall be
entitled to such reasonable intermissions, as he/she shall request for
personal necessities, telephone calls, and counseling.
E. The employee shall not be subjected to any offensive language, nor shall
he/she be treated with dismissal, transfer, or other disciplinary punishment
as a guise to attempt to obtain his/her resignation, nor shall he/she be
intimidated in any other manner. No promises or rewards shall be made
as an inducement to answer questions.
F. All employees may request an attorney of their choosing to be present
during a department investigation. The cost of such attorney shall be paid
by the employee.
Article 23
CIVIL SERVICE COVERAGE
The parties hereby agree that full-time employees of the City of Auburn Police
Department in the classifications of Police Services Receptionist; Police Services
Specialist; Parking Control Attendant; Police Services Specialist Supervisor; Animal
Control Officer; and Evidence ID Technician; (collectively "Employees") will be covered
by City of Auburn Civil Service Rules in accordance with the provisions of Washington
State Law (RCW 41.12.050), except as otherwise set forth herein.
The parties agree the following Civil Service Rules shall not apply to the employees:
Civil Service Rules 6.01, 6.02, and 6.03. Classifications and reclassifications will
continue to be performed pursuant to City policy.
Civil Service Rule 9. Pre-employment examinations, including medical examinations,
psychological examinations, background checks, etc., will continue to be performed
pursuant to City policy.
Civil Service Rule 12.01. The probationary period for transfers and promotions, which is
set forth in Article 14, Section 9, of the Agreement shall remain in effect.
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Civil Service Rule 14 and its subparts. Management rights as provided for in Article 15
of the Agreement, and all of its subparts, shall remain in effect.
Civil Service Rule 15. Leaves of absences shall continue to be governed by the
Agreement and City policy.
Civil Service Rules 16.07, 16.08, and 16.09. Article 14, Section 9, of the Agreement
shall apply to the discipline or discharge of a probationary employee.
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Article 24
TERMS OF AGREEMENT
Section 1. This Agreement is effective January 1, 2016, and shall remain in full force
and effect through December 31, 2018. Pursuant to the provisions of RCW 41.56, the
City agrees to commence negotiations with the Union within one (1) month of receiving
the Union's request to bargain for the purpose of negotiating wages, hours, and other
terms and conditions of employment for employees covered by this Agreement.
Signed this
Auburn, Washington.
City of Auburn
:
:
:
Mayor
day of , 2016, at
Director of Human Resources/
Risk Management
City Clerk
Approved As To Form:
:
City Attorney
International Association of Machinists
and Aerospace Workers of District
Lodge No. 160
:
Business Representative
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Appendix "A"
STRAIGHT-TIME HOURLY RATE OF PAY
Effective January 1, 2016, the employees represented by this Agreement shall receive
wage increases as follows:
Police Services Specialists — 2% + 1.5% Market Adjustment for a total of 3.5%.
Police Services Supervisors — 2% + 0.6% Market Adjustment for a total of 2.6%.
Parking Control Attendants — 2% + 0.3% Market Adjustment for a total of 2.3%.
Evidence Technicians — 2%
Animal Control Officer- 2%
Effective January 1, 2017, the employees represented by this Agreement shall receive
wage increases of 2%.
Effective January 1, 2018, the employees represented by this Agreement shall receive
wage increases of 1.5% effective January 1 and a 1% wage increase effective July 1.
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Appendix "B"
This appendix lists all uniform and equipment items for all Police Services, Evidence/ID
Technicians, and the Parking Control Attendant staff inembers.
QUARTERMASTER SYSTEM (LIST OF UNIFORM AND EQUIPMENT ITEMS)
Receptionist/Police Services Specialist/Supervisors:
Five shirts (combination of short and long sleeve)
Three pair uniform trousers
One sweater, jacket, or vest
One metal nameplate
One pair of shoes or boots (Voucher method up to $125 per year, to be replaced as
needed)
One leather or nylon pants belt
One Auburn Police Identification Card
Evidence/ID Tech Staff:
Four long sleeve uniform shirts
Four short sleeve uniform shirts
Four pair uniform trousers
One uniform sweater (Command Crew-neck)
One uniform coverall
One baseball style cap
One winter uniform jacket
One metal name plate — magnetic attachment — for uniform shirt
One official badge
One pair shoes — black leather, polished toe and heel (Voucher method up to $100)
One pair boots — black leather, polished toe and heel (Voucher method up to $250)
One leather or nylon pants belt
One pair black leather gloves
One Auburn Police Department patch (baseball cap size)
Two Auburn Police shoulder patches for each shirt
Two Auburn Police shoulder patches for winter jacket
One fleece jacket
One Auburn Police Identification Card
Parking Control Attendant Staff:
Six Uniform Shirts — At least one (1) must be long sleeve
Four pair of uniform trousers
One baseball style cap
One winter uniform jacket
One rain coat — yellow
One reflective vest
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One uniform nylon windbreaker jacket
One clip-on style tie
One Auburn style Police tie clip
One name plate, metal for uniform shirt
One official badge
One pair shoes — black leather, polished toe and heel (Voucher method up to $100)
One pair boots — black leather, polished toe and heel (Voucher method up to $250)
One duty equipment belt
One nylon or pants belt
Four belt keepers
One pair black leather gloves
One pair winter black leather gloves
One portable radio holder
One flashlight with belt holder
One folding knife with belt holder
One hazmat glove holder for duty belt
One metal citation holder
One holder for "officer daily log book"
One nylon gear bag
One metal forms holder
One nylon key holder
One Auburn Police Identification Card
One pair gortex rain pants
One stripe of appropriate served years stripes for left sleeve of each long sleeved shirt
Two Auburn Police shoulder patches per shirt
Two Auburn Police shoulder patches per sweater
Two Auburn Police shoulder patches per winter jacket
One ballistic vest
Animal Control Officer:
One jacket with hood
Two jumpsuits
Three name badges
Three position badges
Three official Auburn PD badges
One baseball cap
One pair boots
One belt
One underbelt
One cell phone pouch
One glove pouch
One baton with holster
One department cell phone
Twelve belt keepers (6 perjumpsuit)
One key keeper
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One dog-handler gloves
One radio with holster and microphone
One flashlight with charger and holster
One go bag
Six Auburn Police shoulder patches (2 per garment)
Three back labels of "Animal Control" (1 per garment)
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Agenda Subject:
Resolution No. 5195
Department:
Human Resources
AG EN DA BI LL APPROVAL FORM
Attachments:
Resalutian Na 5195
I nterlocal Agreernent
Administrative Recommendation:
City Council adopt Resolution No. 5195.
Background Summary:
Date:
December 30, 2015
Budget Impact:
$0
The intent is to enter into an Interlocal Agreement for the formation of the joint VEBA
Trust through Employers Health Coalition of Washington (EHCV�. The initial
members are Kirkland, Mount Vernon, and Auburn. The Plan and Trust were initially
established by the City of Kirkland. However, the Plan and Trust are transferring to a
joint powers entity created by two or more public agencies pursuant to the authority
granted for joint or cooperative action under applicable law. The purpose of the Plan
is to provide employees with an opportunity to receive reimbursement for certain
healthcare expenses as provided in this Plan. It is the intent of the Plan Sponsor that
the benefits provided and payable under this Plan be eligible for exclusion from the
gross income of participants. In addition, it is the intention of the Plan Sponsor that
the Plan qualify as a Health Reimbursement Arrangement (HRA) under IRS Revenue
Ruling 2002-41 (June 26, 2002) and IRS Notice 2002-45 (June 26, 2002)
Reviewed by Council Committees:
Councilmember:
Meeting Date:
Staff: Roscoe
January 4, 2016 Item Number: RES.0
RES.0 AUBURN * MORE THAN YOU IMAGINED Page 140 of 201
RESOLUTION N0. 5 1 9 5
A RESOLUTION QF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR
TO EXECUTE AN INTERLOCAL AGREEMENT FOR THE
EHCW VEBA TRUST COOPERATIVE
WHEREAS, Chapter 39.34 of the Revised Code of Washington permits units of
local government to cooperate with other units of 4ocal go�ernment to perform functions
and activities jointly on a mutually advart�ageaus basis; and
WHEREAS, in light of this, the Cities of Auburn, Kirkland and Mount Vernon have
established the EHCW Veba Trus# Cooperative ("the Cooperative"} to provid� certain
benefits for their employees and employees' dependents; and
WHEREAS, the Cities of Auburn, Kirkland and Mount Vernon have also agreed
to establis� a process far funding and administering the employee benefits inciuding but
not limited to making contributions to a trust established by the Cooperati�e for that
purpose.
NOW, THEREFORE, ' THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, HEREBY RESOLVES as follows:
Section 1. That tF�e Mayar is hereby aut�orized to execute an I.nterlacal
Agreement far the EHCW VEBA Trus# Cooperative which agreement shall be in
substantial conformity with the agreement attached hereto as Exhibit A and
incorporated herein by this reference.
Section 2. That the Mayor is authorized to implement such administrative
procedures as may be necessary to carry out the directives of this legislation.
Resolution No. 5195
December 3Q, 2015
R��q� 1 of 2
-�;
Page 141 of 201
Section 3. That this Resolution shall take effect anc! be in full force ��on
passage and signatures hereon.
Da#ed and Signed this day of , 20
CITY OF AUBURN
NANCY BACKUS, MAYOR
ATTEST�:
Danie�le E:. Daskam, City Clerk
APPROVED AS TO FORM:
Daniel B. Heid, City Attorney
Resolution No. 5195
December 30, 2015
R��g�2 of 2
Page 142 of 201
INTERI.00AL AGREEMENT
forthe
EHCW VEBA Trust Cooperative
Efl�cdve January 1, 2016
RES.0 Page 143 of 201
TABLE OF CONTENTS
INTRODUCTION............................................................................................................................1
ARTICLE I. ESTABLISHMENT ANQ PURPOSE OF THE COOPERATIVE ...................................................1
ARTICLE II. DEFINITIONS ..............................................................................................................2
ARTICLE III. AUTHC;RIfY AND DUTIES OF THE BOARD .....................................................................3
ARTICI.E N. GOAI.S OF THE COOPERATNE ...................................................................................... 5
ARTIG.E V. MEETINGS OF THE BOARD ............................................................................................ 6
ARTICI.E VI.OFFICERS ..................................................................................................................6
ARTICLE VII. PLAN CONSUITAIVT ....................................................................................................7
ARTiCIE VIII. ACCOUNT ..:........:....................................................................................................8
ARTiCLE IX. PLAN(S) OF BENEFITS AND TRt1S1' ...............................................................................8
ARTICL.E X. MATTERS REQUIRING APPROVAL ..................................................................................9
ARTIq.E XI.OBLIGATIONS OF AFFILIATES........... ... .... ............................ ...... .........9
ARTICI.E XII. L.IABILI'fY C?F BOARD OR OFFICERS ........................................................................... IO
AItTI(1E XIII. COIYTRACTUAL OBl.IGATION ................................................................................... iQ
ARTICI..E XN. IXPULSION OF AN AFFILIATE ...................................................................................11
ARTICLE XV. VOLUIVTARY WI'fHDRAWAL FROM THE COOPERATIVE .................................................12
ARTICI.E XVI. TERM & TERMINATION OF l'FiE COOPERA'TINE ..........................................................12
ARTICLE XVII. NEW AFFII.IATES ...................................................................................................13
ARTICLE XVIII. MISCEW4NEOEIS ..................................................................................................13
APPENDDC A- tlSf OF INITIAL AFFILIATES ...................................................................................15
APPENDDC B- L.IST' OF AFFILIATES AS OF «DATE» ....................................................................16
APPENDIXC - P1AN(S) ................................................................................................................17
RES.0 ' Page 144 of 201
INTRODUCTION
Thls Agreemerrt, dated ]anuary 1, 2016, made by and among the legal entltles set forth in Appendix A
("Initial Affillates'�, attached hereto and expressly incorporated herein, estabiishes the EHCW VEBATrust
Cooperative (the "Cooperative'�.
WHEREAS, Chapter 39.34 of the Revised Code of Washington ("RCW� permits units of local
govemmerrt to cooperate with other un'rts of local govemment to perform fundlons and activitles jolntly
on a mutuaily advantageous basis; and
WHEREAS, in view of this, the In�ial Affiliates have established in fuli force and efFect the Coopera�ve
to provide ce►tain benefits for their employees and employees' dependents; and
WHEREAS, each Initial Afflliate has also agreed to establish a process for funding and administe�ing the
empioyee beneflts pursuant to this Agreement induding, but not limited to, making contributlans required
pursuant to this Agreement to a trust established by the Cooperative for that purpose.
NOW, TH�REFORE, each Affiliate, in exchange for the mutual covenants, promises and obligations
contained herein, promises and agr�ees as follows:
ARTTCLE I.
ESTABLISHMENT AND PURPOSE OP THE COCPERATNE
1.01 The Ini�al Affiliates hereby establish an employee benefit coopera�ve, known as the EHC1N VEBA
Trust Cooperative (the "Cooperative`�. This Agreerr�nt, and thereby the Cooperative, shail
continue In force unless or untll terminated pursuant to A�tide XVI. This Agreement is intended
to � an InteNocal Agreemer�t for Washingt�n Public Agendes ]oint Purchasing Program
autho�ized by the Washington Coopera�on Act, Revised Code of Washington Chapter 39.
1.02 The goveming body of the Cooperative shail be known hereinafter as the "Board." The Board
shall operate pursuant to the duties and authority desaibed in appAcable law, this Agreement,
and any duly adopted Policies & Procedures.
1.03 The purpose of the Cooperadve is to make available and faciliiate the administratlon of certain
employee benefit Coopet�atives offered by the Afffliates to thelr employees and �nployees'
dependents. The parties to this Agreement acknowledge that the provision of benefit �f the type
to be provided through the Cooperative is a functlon or acdvity each Affiliate has the authority to
perform as described in Section 39.34,030 of the RCVV.
i.04 This Agreement is intended to satlsfy the agreement requirements under Sefion 39.34.030
of the RCVV.
1.05 The establishment of the Cooperative, inciuding the creation of a� Account under Article VIII of
_ this Agreement, is not intended by the Affiliates, jointly or individually, to consGtute the
transaction of an lnsurance business within the State of Washington. The intent is to make
available through the Cooperative employee benefit Plan(s) and benefit-related services and to
utilize the Cooperative to achieve efflciencies including, but not limited to, reduced administrative
costs and effidenaes by providing similar services to each Affiliate.
RES.0 1 Page 145 of 201
ARTICLE II.
DEFINITiO�IS
In addition to the terms defined elsewhere in the Agreement, each of the following terms shall have the
meaning set forth below:
2.01 ACCOUNT — An acoount or accounts estabrshed and funded by the Afiiliates to:
(a)
(b)
pay the joint administrative expenses of and fund certain benefit Plan(s) granted by each
Affiliate ba their respective employees and employees' dependents; and
pay any other expenditure authorized by the terms of this Agreement.
An Accaunt may be accomplished through another entlty and indudes the Tn�st.
2.02 AFRISAiE — A unit of local government that is recognized as a"public agency" under Section
39.34.Q20 of the RCW and participates in the Coopera�ve. There are two classiftcatlons of
AfFiliates used in this Agreement: (1) Tnitial AfFiliates, and (2) New Af�iliates. Collectively, the two
classiflca�ons are referred to as "Affiliates:'
2.03
Z.04
2.05
2.06
2.07
2.08
AGREEMENT — This Interlocal Agreement for the EHCW VEBA Trust Cooperative as may be
amended from time ta time, induding all documents in the same foRn executed by Affiliates.
ALTERNATE — A person designated by an Affiliate to act on behalf of the Affiliate if the
Representative is unavailable to do so as set forth in Section 3.01.
BENEFICIARY -- A person d�ignated by a Partidpant, or by the terms of a Plan, who is or may
become ent3tled to a benefit under that Plan.
BOARD — Ttte governing body of the Cooperative established pursuant to Article III of the
Agreement.
CHAIRPERSORI — A Representative who serves as the Chairper5on of the Board having been
elected by the Board.
COOPERATIV� — The entity known as the EHCW VEBA Trust Cooperative established through
this Agreement and authorized under applicable law, inciuding Chapter 39.34 of the RCW.
2.09 EFFECTIVE DATE — The Effective Date of this Agreement shall be the date upon which (1) at
least two eligible public sectar enfides sign the Agreement, and (2) the publication requirements
under Section 39.34.030 oF the RCW have been satisfled.
2.10
2.11
2.12
2.13
2.14
RES.0
FZSCAL YEAR — The twelve (12) consecutive calendar month period commencing each 7anuary
1�.
FU�1D BALAiVCE — Excess of assets over Ifabilities at any point and time using generally
accepted accounting prinaples.
I�l3'TIAL AFFILIATE — An �liate that is an original signatory to this Agreement as reFlected in
Appendix A.
N�W APFILIA'i'� - An Affiliated that (s not an Initial Affiliate and becomes an Affiliate through
the process described in Artide XVII.
PARTICIPANT — Any empioyee or former employee of an Affiliate, or eligible Benefidary, who is
or may become eligible to receive a benefit of any type from a Plan.
r_a
Page 146 of 201
2.15 PARTIQPATION AGREEMENi' - The document required to be oompleted and executed by a
New AffiOate through which an Affiliate agrees to par�dpate in the Cooperabve and adopts this
Agreement. It may idendfy particular terms and conditions of partidpadon, and provide other
employer spedflc information. An Inftiai Ai�3liate may also execute a Partiapation Agreement
reflecting pa�ticular terms and condltions of partidpatlon and other employer spedfic information.
Executed Partidpation Agreements shaU 6e ariached hereto at Appendix D.
2.16 PLAN(S) — The program(s) of benefits made availabie through the Cooperadve, pursuant to this
Agreement, and permitted to be provided under Code Section SQi(c)(9� through a VEBA.
Current versions of the Plan(s) availabie pursuant to this Agreement shall be ariached to this
Agreement as Appendix C. Partldpation in a particular Plan is not aubomatic or guaranteed. An
Affiliate must duly adopt the Plan.
2.17 PLAM CONSULTANT — The person or entity appointed pursuant to Section 3.02(d) who shall:
(a) Be the principa) manager of the Coopera4ve;
(b) Supervise and controi the day to day o�rations of the Cooperative;
(c) Carry out the purpase of the Cooperative as directed by this Agreement and as may be
dire�ed from time b� �me by the Board; and
(d) Perform those dudes set forth in SecKon 7.03.
2.18 POLICIES & PROCEDURES — The polides and procedures, if any, adopted by the Board for the
uniform, smooth, and efficient operatlon of the C�opera�ve in furtherance of the Agreement.
Once adopted, such Policies & Procedures may be changed from tlme to time.
2.19 QUORUM — A Quorum is the percentage of possible Represenkatives necessary for the Board to
hold a meeting and conduct Cooperative business. A Quorum is present when a majority (more
than flfty percent (50°k)) of the Representatives are personaliy present at a duly ca!!ed meeting.
Telephonic partidpation constitutes personal presence to the extent permitted by applirable law
and as specified in Poiicie5 & Procedures.
2.20 REPRESENTATIYE — Each �Ifate's designated indivldua) to serve and act on behaif of the
Affiliate on the Board set forth in Section 3.01.
2.21 RESERVES — Amount established tfirough an excess of payments over expenses est�blished to
pay, all or in part, unexpected costs and expenses.
2.22 TRUST — The tax exempt trust established under Code Section 501(c)(9) of the Code (a/k/a/
"VEBA'�, which has been established andJor maintained by the Cooperative for the purpose of
funding the provision of benefits under one or more Plan(s).
ARTICLE III.
AUTHORITY AND DUTIES OF THE BOARD
3.01 The Cooperative shall be managed by the Board pursuant to the terms of this Agreement. The
Board shal! consist of one Representative fmm each Affiliate to be designated by such Aftiliate.
Each Affiliate may also designate one Alternate to attend and vote at any and all Board meetings
in lieu of the Representative.
3.02 The Board shall have the authority and duties to accomplish the purposes set forth in Artide I
above and, in furtherance of such authority and duti�s, shall:
RES.0 ' Page 147 of 201
(a) Establish Cooperetives of beneflts and a tax ex�npt trust recognized under Code Section
SOI(c)(9) (a/k/a "VEBA'� in accorclance with Section 9.02;
(b� Seek to max3mize the value of the Affiliates' and Cooperative's benefit dollars;
(c) Serve as the "Plan Administrator" and exe�se ali authority of the Plan Administrator as
further provided in the Plan(s) and Trust, induding the autharity to interpret the Plan(s),
adjudicate daims fo� benefits under the Plan(s), direct the investmenfi of Trust asse�s,
and appotnt an investment advisor to manage the investrnent of Tn�st assets;
(d) Select, enter into a contract with, and/or hire a Pian Consultant, agents, emplayees,
independent coritra�actor, attomeys, a�xiftor, and such other persons as may t� necessary
to administer and acoomplish the purpose of the Cooperative; provided, however, that
the Cooperative shall not have the authority ta enter into, modify, or terminate any
collective bargatning agreement with Affiliate employers; further provided, hawever, that
the Board shall retain ultlmate authority and responsibility for the administratlon of the
Cooperative, the Plan(s�, and the Trust;
(e) Appoint committee.s, including an executive cammittee, and delegate to such
committee{s) any aud�ority and du�es as it deems appropriate;
(f} Carry out educa�on and other Cooperatives relating to health, acddent and other claims
management and reductlons;
{g) pirect the collection and payment of funds to be used for the administra�on of the
Cooperative and the provision of benefits under the Pian(s).
(h) Invest funds in accordance with the investrnent policy established by the Board and
consistent with applicable law;
(i) Select one or more depositories for the funds of the Cooperative;
(j} Cause to be purchased insurance adopted by the Board;
(k} Prepare, review and approve the annual budget of the Cooperadve and a morrthly report
of the flnancial affalrs of the Cooperafive;
(I) In its discretion, obtain, approve and submit to each Affiliate annually an audited r�port
of the flnancial affiairs of the Cooperative, made by a certified public accountant within
six (6) morrths from the end of that Fscal Year in accordance with generally accepted
auditlng standards;
(m) Recommend changes in policy to Affiliates;
(n) Recommend the compensation for all such agents, employees and independent
contractor;
(o) Change, amend or modify the Plan(s);
(p) Cause to be purchased fidelity bonds and/or fiduaary liability coverage for employees (if
any) or other persons, as required by this Agreement, as required by law, or otherwise
determined to be appropriate by the Board;
(q) Establish and recommend monthiy and supplementary (if necessary) payments to the
Account;
RES.0 T Page 148 of 201
(r) Review and ultimately rule upon employee benefit daim disputes;
(s) In aaortiance with the provisions of Article XVII, expel any individual Affiliate from the
Cooperative for failure to pertorm its obiigations ur�der this Agreement; and
(t) Carry out such other activi�es as are necessarily implied or required to carry out the
purposes of the Coopera�ve spedfied in Artide I or the specffic adivitles enumerated in
this Artide III.
With respect to the above described authority and duties, the Board shall fulfill its duties
rnnsistent with appiicable statutory requirements ancl limitations under Chapter 39.34 of the
RC1N.
3.03 No one serving on the Board shall receive any compensation (or other payment) from the
Cooperative for services on the Board.
ARTICI.E N.
GOALS OF THE COOPERATIVE
4.01 The goals of the Cooperative shall be:
(a) To provide quality beneflls for Participants and Benefidaries consistent with finandal
responsibilities and restraints.
(b) To seek tncreased effidendes to miNmize benefits' cost�, induding actuai beneflt
payments and administra�ve expenses.
(c) To attain and maintain R�erves if deemed approp�iate by the Board. The purpose of
the Reserves is to have su�icient funds availabie to pay all incurred but not yet paid
claims at any given time and to minimize the impact of short term cash flow fluctuatlons.
(d) To assure that ali provide�s of service are effecclively disc�arging their responsibilities.
(e) To comply with legal requirements and monitor legislafive developments.
(� To maximize the value of the Affiliates' and Cooperadve's benefit doilars.
RES.0 5 Page 149 of 201
ARTICLE V.
MEETINGS OF THE BOARD
5.01 Regular meetings of the Board shall be held as often as necessary to carry out the pu�se of the
Cooperative but no less one (i) time each Rscal Year (referred to as a"required regular
meeti ng'�.
5.02 The time, date and location of the required regular meeting of the Board shall be determined by
the Board. The required regular me�ing will be scheduled at the beginNng of the Fiscal Year.
Additlonal meefings may be s� as needed.
5.03 Special meetings of the Board may be called by its Chairperson or by any two (2)
Representatives.
5,04 Three (3) to ten (10) business days written notice of regular or speciai meetings of the Board
shall be given to each Representative and an agenda specifying the subject of any special
meeiing shall ac�company such nofice. Business conducted at spedal meetangs shall be limited to
those items speafled in the agenda.
5.Q5 Minutes of all meetlngs of the Baard shail be taken at such meecling with a oopy subsequently
provided to each Representa�ve.
5.06 Ali meedngs af the Board shall be conducted in the manner required by applicable law. In the
event of any conflict between any proviston of this Agreement and any provision of applicable
law, this Agreement shall be deemed modifled to the extent necessary to comply with such law.
In addition to any notices of inee�ngs the Chairperson may be required to serve under this
Agreement, the Chairperson shall cause to be published any schedule or notice of ineetlngs of
the Board if, and as, required by law.
5.07 Each Affliiate shall be entitied to one (1) vote on the Board through its Representahve or
Altemate. No proxy votes or absentee votes shall be permitted. Vating shali be conducted in
accordance wlth the Poliae.s & Procedures established pu�suant to Section 5.08 and applicable
law. `
5.08 The Board may estabiish rules goveming its own conduct and procedure, wnsistent with this
Agreement. Such rules shall be induded as part of the Policies and Procedures of the
Cooperative. Except as modified by the Board pursuar�t ta this Section or applicable law, Roberts
Rules of Order (latest ediaon) shall govem all meetlngs of the Board.
ARTICLE VI.
OFFICERS
6.01 Officers must be Representatives when elected and throughout the tenn of office. Officers of the
Cooperative shall consist of a Chairperson and other officers as may be described in the Policies
& Procedures. Terms of office are two (2) years. The Board shall elect officer(s) at a duly called
meeang. The Chairperson will be elected on even years and serve for two (2) consecutive years.
Through its Policies & Procedures, the Board may from time to time establish other offices and
may elect a Representative ta senre in any of such offices. The Board may fill any vacancies
which may occur in such offices for the remainder of a term.
RES.0 b Page 150 of 201
ARTICLE VII.
PLAN CONSULTANT & OTHER SERVICE PROVIDERS
7.01 The Board shall cantract with a Plan Consultant whose dudes and authority are described in 7A3
below.
?A2 The fee of the Plan Consultant shah be determined by the Board and shail be payable pursuar�t bo
the contract between the Plan Consultant and the Cooperative unless or un�l othervvise revised
by the Board.
7.03 The Pian Consuitant shali be the principal opera�ng manager of the Cooperative and shall
supervise anct control day-to-day operatlons of the Cooperafive and carry out the purpose of the
Cooperative as directed by the Board, Among the du�es and authority of the Plan Consultant
shall be the following:
(a) To slgn on behalf of the Cooperative any instn�ment which the Board has authorized to
be executed, by a formal vote or w�itttten authority, and, in general, to perform ali dutles
Incident to the offlce of the Plan Consultant and suc�h other duties as may be prescribed
by the Board consistent with this Agreement from tlme to tlme.
(b) To make recommendatlons regarding policy decisions, the creatlon of other Board offlces
and the retentlon of agent�, employees and independent contractor.
(c) At each regular mee�ng of the Board and at such oti�r times as requested to do so by
the Board, bo present a full report of the Plan Consultant's adivifies and the fiscai
condi�on of the Cooperadve.
(d) Wfthin the wnstraints of ti�e budget approved by the Board, to make or direct
distribudons from the Acrnunt for payment of benefit claims and the administrative
expenses of the Cooperative and maintain aaurate and detailed records and aaounts of
all transactlons.
(e} Act as liaison with other service providers, the Board, and Representatives.
(f} Deposit all funds as directed by the Board in depositories selected by the Board.
(g) Prepare Board agendas in conjunction with the Chairperson.
(h) Monitor monthly billings to ensure that they are received in a timely fashion and in the
wrrect amaunt.
(i) Be readily available for consulta�on with any interested �nployer regarding benefits as
dete�rnined by the Board and approved by each Affiliate.
(j) U�n request of the Board, soliat new �liates and/or facilitate the solicitation of new
Affiliates.
Notwithstanding the ahove list of duties and authority, the Board, through the Policies &
Procedures, may (1) limit the duties and authority as it deems appropriate, and (2) add to or
expand the duuties and authority as it deems appropriate.
7.04 The Board shali contracfi with a person or persons qualified to manage the Trust.
7.05 The Board may contract with a person or persons who shall be responsible fo� adminlstrative
operations of the Plan, including recordkeeping, reporting, processing of benefit claims, and
paying the day-to-day expenses of the Cooperative as authorized and directed by the Board.
RES.0 ' Page 151 of 201
ARTICLE VIII.
ACCOU �1'T
8.01 It is intended that the Account contain sufficient funds at aU times t� pay the arrtidpated benefits
and costs and the appropriate administrative expenses of the Cooperative.
8.D2 Payments into the Account shall be made in amounts deteimined by the funding policy adopte�
by the Board and in aaordanoe with the paymer�t schedule dete.�mined by the Board.
8.03 During arry Fiscal Year, the Affiliate shail be required to make payments into the Account for
those Par�cipants and/or Beneflciaries within the covered ciasses wha are covered under the
Pian(s) available through such Affillate.
8.04 If, during any Fscal Year, the Plan Consultant, in its discretlon, determines that the funds
available in the Account are insufficient to meet a Plan's current or antldpated future
administrative expensas, the Plan Consultant may recommend supplemeniary payments for
approval by the Board. The Plan Consultant shall recommend the total amount of the
supplementary payments needed and a recammended allocation of such amounts among the
Afriliates.
8.05 The Board, in its discretion, may charge an assessment to new Afiiliates ("New Affiliate
Assessment"), ta wver all or a part of the administrative cos� to the Cooperative of adding the
Afffliate. The temis and condi�ons, induding amount and duration, of a New Affiliate Assessment
shall be determined by the Board.
AR'RCLE IX.
PLAN(S) OF BENEFITS AND TRUST
9.01 The Cooperative may, from time to time, offer one or more Plans to provide life, medical,
aaident or disability henetits for Affiliate employees or employees' dependents and to have such
Plan or Plans administered under this Agreement. The ini�al Plan shall be adopted by the Board.
Thereafter, the Board may, from time to tlme, am�d the Pian(s) (including the terms and
rnndi4ons thereofl and adopt new or additianal Plans. The Baard hereby also grants authority to
amend the Plan(s) and adopt new ar additional Plans to the Plan Consultant in accordance with
the Policies & Procedures. Notwithstanding the foregoing, the Baard reserves the autharity to
review such acqons by the Plan Consultant and to approve or dsapprove such actions at a duly
called meeting of the Board.
9.02 The Board, in its dlscretion, shall establish and maintain a Trust for all or certain Plan(s) made
available through this Agreement in accordance with applicabie law. The terms and mnditions of
the Trust may be changed from dme to 4me by the Board in accordance with the Trust
agreement. Pursuant to its authority in Section 3.02, the Board may hire approp�iate service
providers with respect to the Trust.
9.03 The Plan Consuttant and Plan Supervisor shall be notified of any such change or new or
additional Pfan and/ar Trust as soon as practicabie but in all evenks at (east s'aty (50) days prior
to the effective date of the change or adop�on of the new or addibonal Plan and/or Trust.
9.04 The current Plan(s} and Trust at any time are attached to this Agreemenk in Appendix C.
RES.0 � Page 152 of 201
ARTICLE X.
MATTERS REQUIRING �IPPROVAL
10.01 The pr�ence of a Quorum shall t� required for the transac�ion of Cooperafive business at any
duly called meeang of the Board. For this purpose, presence may be in person or by telephone.
Except as specifically otherwise noted below, an act by a majority of the Represe�tatives at a
meeeting at which a Quorum is present shall be the act of the Board. In the absence of a
Quorum, a majority of the Representatives present may adjourn any meeting from tlme to �me
until a Quorum is present. If a Quorum is present when a duly called meeting of the Board is
convened, the Representatives present may contlnue to transact business urrtil adjoumment,
notwithstanding that ttie withdrawai of a number of Representatives originally present leaves less
than required for a Quorum.
10.02 The foilowing are "spedai b�iness matters" requiring approval oF seventy-five percent (75%),
rounded up if a fraction, of all Afflliates as evidenced by t�solution af the goveming body of each
AfHUate:
(a) Amendments to this Agreement;
(b) Merger of the Cooperative with ar�ther cooperative; and
(c) Terminatlon of the Caoperative.
ARTICLE XI.
OBL'IGATIONS OP AFFILIATES
11.01 The obligat3ons of each AfFilate shail be as follows:
(a) Commit to an initial term of partidpation of three (3) y��s.
(b) To appropriate or budget and pay promptly ail paymer�ts to the Acoount in such amounts
and by such times as are established within the scope of this Agreement;
(c) To cooperate fuliy with the Plan Consultant, the Coo�ative's attorneys and auditor and
any agent, employee, officer or independent cAntractor of the Cooperative in any matter
relating to the purpose and powers of the Coopera4ve;
(d) To review all proposed changes to a Pian prior to the Board's final vote on such changes;
(e) To provide a prompt lis�ting of any new or separated employees in accordance with the
parameters set by the service providers;
(� To notlfy promptly all of its Plan Partidpants and Beneficiaries of the withdrawal or
expulsion of such Affiliate from this Agr�eement;
(g) To act promptly on ail matters requiring Board approval and to not withhold such
approval unreasonably or arbitrarity; and
(h) To purchase and maintain approptiate insurance covering liability arising out of the
Affiliate's participation in the Cooperative, including any liability arising from the actions
of the Affiliate's Representative (or Altemate) acting in his/her scope of authority under
this Agreement.
11.02 At the discretion of the Board, non-perFormance of Affiliate obiigations, whether in whole or in
part, may be the basis for a recommendation to expel pursuant to Article XN.
RES.0 y Page 153 of 201
ARTICLE XII.
LIABILITY C1P BOARD OR OFFICERS
iZ.01 The Representatives, Altemates, and officers shall discharge their duties solely and callecdvely in
the interest of the Plan Partlapants and Benefidaries under the Plan, and:
(a) For the exciusive purpose of:
1} providing benefits to Participants and Benefits under the Plan; and
2� defraying reasonabie expense of administering the Plan.
(b) With the care, sklll, prudence and di�gence under the circumstances then prevailing that
a prudent pe�son in a Iike capacity and familiar with such matters would use in the
conduct of an enterprise of a like character and with like afms.
(c) In accordance with the dauments and instruments gaveming the Plan insofar as such
documents and instruments are consistent with the law.
12.02 To the fullest extent permitted by applicable law, the Representadves, Aftemates, and officers
shall nat be liable for any mistake in judgment or other action made, taken or omitted by them in
good faith; nor for any action made, taken or omitted by arry agent, employee or independent
co�ractor selected with reasonable care, nor for loss incurred through inves6ment of Cooperative
funds, or failure to invest. Na Representative, Altemate or officer shali be liable for any adion
taken ar om'ttted by any other Represerrtative, Altemate or offlcer. No Representative shall be
required to give a bond or other security to guarantee the faithful performance of his/her dutles
hereunder except as required by this Agreement or by law. The Cooperative may purchase
insurance providing fidudary liabil'ity coverage for offlcers, Representative and/or Altemates.
AR'iTCLE XIII.
CONTRACTUAL OBLiGATION
13.41 The obiiga�ons and responsibilities of the Afflliates set forth in this Agreement, including the
obligation to take no action inconsistent with this Agreement, as originally written ar validly
amended, shall remain a continuing obliga�on arxl responsit�lity of each Afflliate. This
Agreement may be enforced in law or equity either by the Cooperative itself or by any Affiliate.
The consideration for the duties imposed upon the �liates by this Agreement is based upon the
mutual promises and agreements of the Affiliates set forth herein and the advantages gained by
the Afflliates through reduced administrative costs for the processing of employee benefits.
13.02 Except to the extent of the limited financfal payments desc�(bed in Ardcle VIII, no Affiliate agrees
by this Agreemenk to be respansible for any daims of any kind against any other Affiliate. The
Affiliates intend in the creation of the Coaperative to establish an organization for joint
administration of employee benefits within the scope set forth in this Agreement only and do not
intend to create between the Affiliates any relationship of partnership, surety, indemnifica�on or
liability for the debts of or ciaims against another.
RES.0 10 Page 154 of 201
ARTICLE XIV.
EXPULSION OF AN AFFILiATE
14.01 Foliowing reasonable efforts ta informally resolve a situation, an Affiliate may be expelled from
the Cooperative for faili� to perfortn or fulfill the responsibili�es assigned to Affiliates under the
Agreement or for any othe� action or failure to act determtned by the Board to be detrimentai to
the interests of the Cooperative.
14.02 The expuision of an Affi�ate must be appraved by a seventy-five percent (75%), rounded up if a
fradion, vote of ail Represe�atives, exduding the Representa�ve of the �liate whose expulsion
is being voted upon as evidenced by resolution of the goveming body of each Affiliate. Following
reasonable attempts by the Board to resoive the situatlon, the expulsion proceedings set out
below shall be followed.
14.03 No Affiliate may be expeiled except after written notice from the Board of the reason for the
expulsion and after a reasonable opportunity of not less than fifteen (15) days to cure. Within
such fifteen (15) day period, the Affiliate may request a hearing before the Board prior to any
dedsion being made as to whether to recommend e�cpulsion. The Board shall set the date for
such hearing, which shall not be less than fifteen (15) days after expiration of the time period for
co�rection. The Board may appoint a hea�ing officer to conduct such hearing and make
recommendatlons to the Board based upon findings of the fact; provided, however, if the hearing
is conducted by a hearing officer, the Affiliate may request a furtf�r hearing before the full
Board. Such request shall be in writing and addressed to the Chairperson. The Board or hearing
officer may recommend a dedsion at the dose of the hea�ing or within fifteen (15) days
thereafter. The expulsion of an Affiliate, following the notice and hearing as set forth in this
Section, shail be final when approved as speclfied in Section 10.02 and shall become effective
thirty (30) days following such approval, unless a different effiective date is agreed bo by the
Board and the expelled Affiiliate. At such a hearing, the appealing Af�liate may not vote or be the
hearing officer.
14.04 After expulsion, the foRner Affiliate shall continue to be fuliy liable for (a) any payment due to
the Account with respect to the period prior to the date of expulsion, (b) any other unfulfilied
obligatlon a�ising at any tlme attributabie to the period prior to the date of expulsion, and (c) a�y
other unfulfiiled obligadon as if it was stlll an Affiliate of the Gooperative.
14.05 The Coopera�ve shall have no obligation with respect to expenses incurred under a Plan by a
Participant or Beneficiary covered through an expelled Affiliate afiter the effective date of such
expulsion. No ciaim under a Plan by a Pardcipant or Benefidary covered through an expelled
Affiliate for an expense that was incurred before the effective date of expulsion shall be paid if
not presented to the Cooperative, or its designated agent, within ninety (90) days after the
efFectfve date of expulsion (i.e., any such claim will not be paid by the Plan). Except as provided
below, the obiigation of khe Cooperative to administer daims for expenses incuned under a Plan
by a Participant or Benefidary covered through an expelled Af�iliate prior to the effective date of
expulsion ("n.in-out claims'� shall can4nue for such claims as may have been filed or which are
filed within ninety (90) days after the effecctive date of the expulsion of the Affiliate. Payment
and administration of any ciaims for expenses incu�ed prior to the effiective date of an Affiliate's
expulsion that are submitted for payment after such ninety (90) day period shall be the sole
responsibility of the expelled Affiliate.
RES.0 11 Page 155 of 201
ARTICLE XV.
VOLUIVTARY WITHDRAWAL FROM THE COOPERATNE
15.01 After the inidal three (3) year commitment, an Affiliate may withdraw upon one hundred and
twenty (120) days advance written notice to the Coapetative or by such other lesser advance
notice deemed reasonabie by the Board in its sole discretion. Upon the Baard's receipt of a
notice of withdrawai, the withdrawal of such Affiliate is irrevocable unless such revocatlon is
allowed at the sole discretion of the Board. Upon an Affillate's submission of a notice of
withdrawal, such Affiliate forfeits ail of its votlng rights in Its own right and as a Representative
on the Board, unless aliowed to vote on any particular matter at the sole discrefion of the Board.
The rights and duties of the Cooperative with respect to a withdrawing Affiliate in the
Cooperative shali be as set forth below.
15.02 After voluntary witlidrawal, the former Affiliate shali continue to be fully Itable for (a) any
payment due to the Acmunt with respect to the period prfor to the date of withdrawal, (b) any
other unfutfllled obligatlan arising at any �me attributable to the period p�iar to the date of
withdrawal, and (c) any other unfulfilled ob�ga�on as if it was s�ll an Aftiliate of the Cooperative.
15.03 The C.00pera�ve shall have no obligation wtth respect to claims incurred under a Plan by a
Partidpant ar Benefldary covered through a withdrawing Affiliate after the effective date of such
withdrawal. No claim under a Plan by a Partidpant or Benefidary covered through a withdrawing
Aftiliate that was incurred befare the effective date of voluntary withdrawal shail be paid if not
presented to the Cooperative, or its designated ager�t, within one hundred twenty (120) days
after the efFedive date of the voluntary withdrawai (i.e., any such daim wiil not be paid by the
Plan). Except as provicled below, the obligatian of the Cooperative to administer daims incurred
under the Plan by a Participant or Bene�dary oovered through a wfthdrawing Affiliate p�ior to the
effecctive date of withdrawal ("run-out daims'� shall continue for such claims as may have been
flled or which are filed within one hundred twenty (120) days after the effectivve date of the
voluntary withdrawal of the Aftiliate. Payment and administratlon of any daims for expenses
incurred prior to the et%clive date of an Affifiate's voluntary withdrawal that are submitted for
payment after such one hundred twenty (120) day period shall be the sole responsibility of the
withdrawing Affiliate.
ARTICI.E X1tI.
TERM & TERMINATIt�N OF THE COCIPERATNE
16.01 The Cooperative shall eaast until terminated. The withdrawal of any Affiliate daes n� impact the
continued existence of the Cooperative. And, the Coopera�ve's continued existence does not
preclude an Afflliate from withdrawing.
16.02 The Cooperative shall terminate upon the occurrence af any one of the foilowing events:
(a) A final determination by a court of competent ju►isdiction, afier all appeals have been
exhausted or fime for appeal has expired, that the Cooperative is invalid, contrary to law,
or insolvent; or
(b) Upon a vote of Affiliates described in Article X.
16.03 Upon termination of the Cooperative, and to the extent not preciuded by appiicabie law, the
rights and duties of the Caoperative to each �liate and the �lghts and duties of each �liate to
the Cooperative shall be the same as those with respect to a withdrawing Affiliate as outlined in
Articie XV.
RES.0 lZ Page 156 of 201
aRric� �cvzi.
NEW AFFILZATES
17.01 The Cooperative shall consider applications from potential additional AfFiliates provided a
compieted formal appiicatlon has been submitted by the potential Affiliate.
17.02 The additlon of a new Affipate, induding all terms and conditions of such acceptance, shall be
determined by the Plan Consultant.
17.03 Once approved for partidpatlon by the Plan Consultant, the entity will be an Affiliate upon the
completion oF and receipt by the Plan Consultant of a Rartidpation Agreement.
17.04 Approved new Affiliates normally ente� the Cooperadve at the beginning of Flscal Year. Entry in
to the Cooperative at other times may be pennitted, the tertns and condftions of which to be
mutually agreed upan by the New Affiliate and the Cooperative. In its discre�on, the Plan
Consultank may allow entry to the Cooperative at other times and may impose restriGions,
limitatlons, etc. with res�ct to such entry.
ARTICLE XVIII.
MISCELLANEOUS
18.01 Notice - Any notice required by this Agreement shali be in writing and shall 1� deemed tn have
been given when deposited in a United States Post Office, registered or certffied mail, postage
prepaid, retum receipt requested and addressed as follows:
(a) If to the Cooperative: to the then cuRent Chairperson of the Board at the address of the
then current Plan Consultant.
(b) If to an Afffliate: to the address set forth on Appendix A or to such other address as any
pa�t to this Agreement may from tlme to dme specify in wri�ng to the other paities and
to the Cooperadve.
Any notice required by this Agreement may be waived in wridng by the party(ies) to wtwm such
notice is required tn be provided hereunder. Attendance by an Affiliate at a meetlng constitutes
waiver of notice to that meeting, except (i) where the Affiliate objects at the beginning of tfie
meeting to the transaction of business at the meeting because the meetlng was not lawfully
called or convened, and; (2) the Afflliate does not thereaiter par�dpate in tt� meeting.
18.02 Sect3on Headings — The section headings inserted in this Agreement are for convenience oniy
and are not intended to and shall be construed to limit, enlarge or affect the scope or intent of
this Agreement or the meaning of any provision hereof.
18.03 Validity and Savings Clause — In the event any provision of this Agreement shall be dedared
by a final judgment of a Court of competent jurisdic4on to be unlawful or unconstitutional or
invalid as applied to any �liate, the lawfulness, oonstitutionality or vaiidity of the remainder of
this Agreement shall not be deemed affected thereby.
18.04 Counterparts — This Agreement and any amendments thereto may be executed in any number
of counterparts which taken together constitute a single instrument.
18.05 Entire Agreer�ent - All the agreements, mvenants, representations, and warranties between
the Affiliates expressed or impiied, oral or written, rnnceming the subject matter of this
Agreement a�e contained in this Agreement. All prior and contemporaneous conversations,
RES.0 13 Page 157 of 201
nego�ations, agreemen�s, representations, covenants and warran�es, canceming the subject
matter of this Agreement� are merged into this Agreeme�.
18.06 Applicabie Law. The Cooperative shall comply with ail notification, registration, fitings or other
obligations required by Chapter 39.34 of the RCVII.
18.07 Representative Disqualific,aiion. An individual shall be d�quaifffed from serving as, or
continuing to serve as, a Representative of the Board if such individual is not employed by the
Affiliate he/she represents.
IN WITNESS WHEREOF, the following Ini�al Affiliates have caused this Agreement to be executed by
their duly autharized officers and their undersigned representatives as of the date above written.
City of b�lctand
By:
Ti�e:
Date:
�ty of Mount Vemon
.
By: ,� .t�
TiHe: ����--
Date; t ����T t�[1�,��
City of Aubum
By:
Title:
Date:
RES.0 la Page 158 of 201
APPENDDC A
LIST QF IMITTAL APFILtATES
Gty of b�ldand
C'ity of Aubum
City of Mount Vernon
RES.0 15 Page 159 of 201
APPE1�lDIX B
LIST OF APFILIATE5 AS OF 01/01/2016
City of tGrkland
�ty of Aubum
City of Mount Vernon
RES.0 16 Page 160 of 201
APPENDD( C
PLAN(S)
See attached, a copy of the most recent officiai Plan documentation each benefit Plan(s) and the most
tecent official Trust documentation.
RES.0 17 Page 161 of 201
a�FeNonc o
PARTICIPATION AGREEMEM'FS
RES.0 18 Page 162 of 201
FUNDED HEALTH REIMBURSEMENT ARRANGEMENT
BASIC PLAN DOCUMENT
O 2015 Hitesman & Wold, P.A.
Funded HRA Basic Pian Document Non-ERISA (EHC)
RES.0 Page 163 of 201
TABLE OF CONTENTS
ARTICLE I. INTRODUCTION ................................................................................................................1
ARTICLE II. DEFINITIONS ...................................................................................................................2
ARTICLE III. ADOPTING EMPLOYERS ...................................................................................................5
ARTICLE IV. ELIGIBILITY AND PARTICIPATION OF EMPLOYEES ............................................................6
ARTICLE V. BENEFITS UNDER THE PLAN .............................................................................................9
ARTICLE VI. CONTRIBUTIONS AND TRUST ........................................................................................15
ARTICLE VII. CLAIMS DETERMINATIONS AND REVIEW OF DENIED CLAIM ..........................................16
ARTICLE VIII. HIPAA PRIVACY AND SECURITY PROVISIONS ...............................................................21
ARTICLE IX. PLAN ADMINISTRATION .................................................................................................24
ARTICLE X. PLAN AMENDMENT AND TERMINATION ...........................................................................26
ARTICLE XI. GENERAL PROVISIONS ..................................................................................................27
RES.0 Page 164 of 201
ARTICLE I.
INTRODUCTION
1.1 Establishment. An executed Adoption Agreement plus this Basic Plan Document constitute the "Plan."
The effective date of the Plan is set forth in the Adoption Agreement. The Plan and Trust are initially
being established a single Emp�oyer. However, it is anticipated that in the future sponsorship of the Plan
and Trust will be transferred to a joint powers entity created by two or more public agencies pursuant to
the authority granted for joint or cooperative action under applicable state law.
1.2 Purpose. The purpose of the Plan is to provide certain Employees with an opportunity to receive
reimbursement for certain Health Care Expenses as provided in this Plan. It is the intention of the Plan
Sponsor that the benefits provided and payable under this Plan be eligible for exclusion from the gross
income of Participants as provided by Sections 105(b) and 106 of the Code. In addition, it is the
intention of the Plan Sponsor that the Plan qualify as a Health Reimbursement Arrangement ("HRA'�
under IRS Revenue Ruling 2002-41 (June 26, 2002) and IRS Notice 2002-45 (]une 26, 2002).
1.3 HIPAA Privacy and Security Rules. This Plan is a��covered entity" for purposes of the Privacy Rules
and Security Rules as described in greater detail in Article VIII below.
1.4 Not ERISA Plan. Because it is a governmental plan, this Plan is not an employee welfare benefit plan
for purposes of ERISA.
1.5 Trust. This Plan is intended to be funded through a Trust, reflected in a separate document.
RES.0 Page 165 of 201
ARTICLE II.
DEFINITIONS
The following words and phrases are used in this Plan and shall have the meanings set forth in this Article
unless a different meaning is clearly required by the context or is defined within an Article.
2.1 Adoption Agreement means the separate agreement, or portions thereof, completed and executed by
the Plan Sponsor setting forth the Plan Sponsor's selection of options under the Plan.
2.2 Authorized Representative means, for the claims and appeal procedures, the person entitled to act on
behalf of the claimant with respect to a benefit claim or appeal. In order for the Plan to recognize a
person as an Authorized Representative, written notification to that afFect signed by the claimant and
notarized must be received by the Plan. An assignment for purposes of payment is not designation of an
��Authorized Representative."
2.3 Basic Plan Document means this document, which together with an executed Adoption Agreement
constitutes the Plan for the Plan Sponsor.
2.4 Claims Administrator means the person or entity designated by and under contract with the Plan
Administrator to perform certain administrative functions, including, but not limited to, claims
administration and recordkeeping.
2.5 Claims Run-out Period means the period of time following the end of a Plan Year (Section 5.3) or the
termination of a Participant's participation in the Plan (Section 5.7) during which the Participant may
submit claims to the Plan for expenses incurred during the Plan Year or the Participant's participation (as
the case may be).
2.6 Code means the Internal Revenue Code of 1986, as amended from time to time.
2.7 Covered Individual means a Participant, Dependent of a Participant and the Spouse of a Participant,
and any other person appropriately covered under the Plan.
2.8 Dependent means as defined in the Adoption Agreement.
2.9 Employee means any person employed by an Employer and on the Employer's W-2 payroll on or after
the Effective Date. Employee does not include the following:
(a) Any self-employed individual as described in Section 401(c) of the Code;
(b) Any employee included within a unit of employees covered by a collective bargaining agreement
unless such agreement expressly provides for coverage of the employee under this Plan;
(c) Any employee who is a nonresident alien and receives no earned income from the Employer from
sources within the United States;
(d) Any employee who is a leased employee as defined in Section 414(n)(2) of the Code;
(e) An individual classified by the Employer as a contract worker, independent contractor, temporary
employee, or casual employee, whether or not any such persons are on the Employer's W-2
payroll or are determined by the IRS or others to be common-law employees of the Employer;
and
(� Any individual who performs services for the Employer but who is paid by a temporary or other
employment or staffing agency such as "Kelly," "Manpower," etc., whether or not such individuals
are determined by the IRS or others to be common-law employees of the Employer.
RES.0 Page 166 of 201
2.10 Employer means an entity that (a) satisfies any conditions described in the Adoption Agreement; (b) has
been approved by the Plan Administrator for participation in the Plan; and (c) has entered into a
Participation Agreement.
2.11 Employer Contribution means a nonelective contribution made by an Employer on behalf of its Eligible
Employees in accordance with Section 6.1. The Employer Contribution is an amount that has not been
actually or constructively received by the Participant, and it is made available to the Participant
exclusively for reimbursement of eligible expenses under the Plan. Employer Contributions may include
mandatory salary reduction contributions.
2.12 Entry Date means the date as of which an Employee becomes a Participant in this Plan as set forth in
the Adoption Agreement.
2.13 ePHI means PHI maintained or transmitted in electronic media, including, but not limited to, electronic
storage media (i.e., hard drives, digital memory medium) and transmission media used to exchange
information in electronic storage media (i.e., internet, extranet, and other networks). PHI transmitted via
facsimile and telephone is not considered to be transmissions via electronic media.
2.14 ERISA means the Employee Retirement Income Security Act of 1974 and regulations thereunder, as
amended from time to time.
2.15 HC Account means "health care account" and is the record keeping account established under the Plan
for each Participant.
2.16 Health Care Expense means as defined in the Adoption Agreement, provided it is defined no more
broadly than the description in IRS ReVenue Ruling 2002-41 and IRS Notice 2002-45. Notwithstanding
the foregoing, if the Employer sponsors a cafeteria plan, Health Care Expense shall not include premiums
that may be paid on a pre-tax basis in accordance with the terms of such cafeteria plan, which may
include premiums for major medical coverage provided by the Employer and premiums for coverage
under an insurance contract, health maintenance organization agreement, or other benefit agreement
providing coverage issued on a non-group, individual basis. To the e�ent Health Care Expense is defined
in the Adoption Agreement to include premiums for qualified long-term care insurance, the amount of
such premium that will qualify as a Health Care Expense shall be limited to the portion that constitutes
"eligible long-term care premiums" as defined in Section 213(d)(10) of the Code. "Health Care Expense"
may include over-the-counter drugs and medicine (other than insulin) only if such drug or medicine has
been prescribed, as required by Section 106(f� of the Code. Notwithstanding the foregoing, if the Plan is
an integrated HRA and the group medical plan in which a Participant is enrolled does not provide at least
60% minimum value, then, during the period of time in which such a Participant is receiving contributions
to the Plan, Health Care Expense for such a Participant shall be defined no more broadly than allowed
under applicable law.
2.17 HIPAA means the Health Insurance Portability and Accountability Act of 1996 and regulations
thereunder, as amended from time to time.
2.18 Health Reimbursement Arrangement ("HRA") means the Employer-funded medical reimbursement
program within the meaning of IRS Revenue Ruling 2002-41 (June 26, 2002) and IRS Notice 2002-45
(June 26, 2002).
2.19 Highly Compensated Individual means an individual who is (1) one of the 5 highest paid officers of
an Employer, or (2) among the highest paid 25 percent of an Employer's Employees, except (1)
Employees who have not completed 3 years of service, (2) Employees who have not attained age 25, (3)
part-time or seasonal Employees, (4) Employees not included in the plan who are included under a
collective bargaining agreement, and (5) Employees who are nonresident aliens and who receive no
earned income from a source within the United States.
2.20 Limited Scope Health Care Expense means, unless provided otherwise in the Adoption Agreement, a
3
RES.0 Page 167 of 201
Health Care Expense for dental or vision care that qualifies as an expense for medical care under Section
213(d) of the Code. "Limited Scope Health Care Expense" may include over-the-counter drugs and
medicine only if such drug or medicine has been prescribed, as required by Section 106(� of the Code.
2.21 Managing Body means the person or persons with authority to make decisions for an Employer.
2.22 Participant means any Employee (or former Employee) who is or may become eligible to receive a
benefit through this Plan, or whose beneficiary may be eligible to receive any such benefits pursuant to
Article IV. In addition, Participant includes persons "deemed" to be Participants under a specific provision
of this Plan.
2.23 Participation Agreement means an agreement entered into by an Employer and the Plan
Administrator pursuant to which the Employer agrees to participate in the Plan and Trust and be bound
by their terms.
2.24 PHI means health information that:
(a) Is created or received by a health care provider, health plan, or health care clearinghouse;
(b) Relates to the past, present, or future physical or mental health or condition of an individual
(including "genetic information" as that term is defined in the Genetic Information
Nondiscrimination Act of 2008); the provision of health care to an individual; or the past, present,
or future payment for the provision of health care to an individual; and
(c) Either identifies the individual or reasonably could be used to identify the individual.
2.25 Plan means this Plan as may be amended from time to time. It consists of a completed Adoption
Agreement plus the Basic Plan Document. The name of the Plan is specified in the Adoption Agreement.
2.26 Plan Administrator means the entity, person or persons determined under Section 9.1.
2.27 Plan Sponsor means the entity that has established this Plan by completing and executing the Adoption
Agreement or the entiry that has responsibility for maintaining the Plan. The Plan Sponsor is identified in
the Adoption Agreement.
2.28 Plan Year means the twelve (12) month period beginning and ending as indicated in the Adoption
Agreement. The initial Plan Year may be a'�short" Plan Year beginning and ending as indicated in the
Adoption Agreement. The records of the Plan will be kept based upon the Plan Year.
2.29 Privacy Rules means the Standards of P�ivacy of Indi�idually IdentiFable Health Information at 45
C.F.R. part 160 and part 164 at subparts A and E.
2.30 Security Incident means "security incident" as defined in 45 C.F.R. Section 164.304, which generally
defines "security incident" to include attempted or successful unauthorized access, use, disclosure,
modification, or destruction of ePHI.
2.31 Security Rules means the Security Standards and Implementation Specifications at 45 C.F.R. Part 160
and Part 164, subpart C.
2.32 Spouse means "Spouse" as defined in the Adoption Agreement.
2.33 Trust means the trust identified in the Adoption Agreement, created for the purpose of accepting and
holding Employer Contributions, and limited other contributions, made under the Plan.
2.34 Trustee means the person or persons identified as a��Trustee" under the Trust.
RES.0 Page 168 of 201
ARTICLE III.
ADOPTING EMPLOYERS
3.1 Adoption of Plan. Upon approval by the Plan Administrator, an employer may adopt the Plan by
resolution duly adopted by its Managing Body, as represented and warranted in the Participation
Agreement, and upon execution of a Participation Agreement.
3.2 Employer Withdrawal. In the event two or more Employers participate in the Plan and the Trust, the
following rules shall govern the withdrawal of an Employer.
(a) Voluntary. Any Employer may, upon ninety (90) days advance written notice to the Plan
Administrator, withdraw from the Plan and the Trust.
(b) Involuntary. The Plan Administrator may expel an Employer from the Trust for cause upon ten
(10) days written notice and failure to correct any act or omission constituting cause.
The Plan Administrator reserves the right to notify all impacted Covered Individuals of an Employer's
withdrawal. If an Employer's participation in the Plan and Trust terminates as provided herein, Trust
assets attributable to the withdrawing Employer shall be handled in accordance with the provisions of the
Trust.
RES.0 Page 169 of 201
ARTICLE IV.
ELIGIBILITY AND PARTICIPATION OF EMPLOYEES
4.1 Eligibility Requirements. Each Employee shall be eligible to participate in this Plan upon meeting the
eligibility requirements set forth in the Adoption Agreement and the Employer's Participation Agreement.
4.2 Participant Status. An Employee who has met the eligibility requirements described in Section 4.1
shall become a Participant as of the Employee's Entry Date.
4.3 Conditions of Participation. As a condition of participation and receipt of benefits under this Plan, the
Participant agrees to:
(a) Observe all Plan rules and regulations;
(b) Consent to inquiries by the Claims Administrator and Plan Administrator with respect to any
provider of services involved in a claim under this Plan;
(c) Submit to the Plan Administrator all notifications, reports, bills, and other information required by
the Plan or which the Claims Administrator and Plan Administrator may reasonably require; and
(d) Cooperate with all reasonable requests of the Claims Administrator and Plan Administrator that
may be necessary for the proper administration of the Plan.
Failure to do so relieves the Plan, Plan Administrator, Claims Administrator, and Plan Sponsor of any
obligations under this Plan with respect to�that Participant and any others claiming entitlement to benefits
under this Plan through that Participant and shall result in the termination of the Participant's
participation in the Plan.
4.4 Coverage Options. The Plan consists of one or more of the following coverage options as described
below.
(a) One or more of the following coverage options, as indicated in the Adoption Agreement, are
available under the Plan:
(i) Full Scope Option. Participants may receive reimbursement for Health Care Expenses
incurred by themselves and their Spouses and Dependents.
(ii) Limited Scope Option. Participants may receive reimbursement for only Limited Scope
Health Care Expenses incurred by themselves and their Spouses and Dependents.
(iii) Suspended Account Option. Participants may receive no reimbursements from their
HC Accounts. However, the balance of the Participant's HC Account will be preserved for
use in subsequent Plan Years.
(b) Participants will be covered under the "Full Scope Option" unless the Participant elects in writing
and in a manner specified by the Plan Administrator to participate in another available coverage
option. Notwithstanding the foregoing, if provided in the Adoption Agreement, Participants
enrolled in a high deductible health plan (as defined in Section 223 of the Code) sponsored by
the Employer shall automatically be enrolled in the coverage option specified in the Adoption
Agreement. If an election of coverage options is required, such an election shall be effective on
a Plan Year basis, shall be made prior to the beginning of the Plan Year, shall be irrevocable
during the Plan Year, and shall automatically renew for subsequent Plan Years unless the
Participant makes an election (in the manner specified above) to participate in a different
coverage option for such subsequent Plan Year.
(c) If a Participant changes coverage options, the following rules apply with respect to claims for
RES.0 Page 170 of 201
reimbursement under the Plan:
(i) Expenses will be eligible for reimbursement under the Plan in accordance with the
coverage option in which the Participant is enrolled at the time the expense is incurred.
For example, if a Participant who is enrolled in the "Limited Scope Option" incurs an
expense for something other than a Limited Scope Health Care Expense, that expense
cannot be reimbursed under the Plan at any time in the future (e.g., if the Participant
subsequently becomes covered under the "Full Scope Option'�.
(ii) Notwithstanding the foregoing, unless provided otherwise in the Adoption Agreement, a
Health Care Expense incurred while the Participant is covered under the "Full Scope
Option" will not be reimbursed if the claim for such expense is submitted after the
Participant has become covered under another coverage option and such expense is not
reimbursable under the new coverage option. For example, if a Participant incurs an
expense for something other than a Limited Scope Health Care Expense while covered
under the "Full Scope Option," that expense cannot be reimbursed if the claim is
submitted after the Participant becomes covered under the "Limited Scope Option."
4.5 Waiver of Participation. A Participant may elect to permanently waive future participation in and
reimbursements under this Plan (the "opt out election"). The opportunity to make an opt out election will
be made available annually and upon termination of the Participant's employment with the Employer. An
opt out election shall be made in accordance with procedures established by the Plan Administrator. If
the opt out election is made during the election opportunity provided annually, the opt out election will
be effective as of the last day of the Plan Year in which it is made. If the opt out election is made during
the election opportunity provided upon termination of employment, the opt out election will be effective
on the date specified in the Adoption Agreement. If a Participant makes an opt out election, no
reimbursements will be provided by the Plan to that Participant for eligible expenses incurred after the
effective date of the opt out election. However, unless otherwise prohibited by applicable law (including
regulatory guidance), a Participant making an opt out election may continue to submit claims for eligible
expenses incurred prior to the effective date of the opt out election until the close of the applicable claim
Claims Run-out Period.
4.6 Termination of Contributions. Unless provided otherwise in the Adoption Agreement, a Participant
shall cease to be eligible to receive contributions under this Plan at midnight of the earliest of the
following dates:
(a) The date of the death of the Participant;
(b) The date of termination of the Participant's employment with the Employer;
(c) The date of the Participant's failure to meet the eligibility requirements of Section 4.1, as may be
amended from time to time in accordance with Article X;
(d) The date on which the Participant's Employer ceases to participate in the Plan and Trust; or
(e) The date of termination of the Plan in accordance with Article X.
Termination of contributions under this Plan shall not prevent a former Participant from receiving
continuation coverage required by applicable law.
RES.0 Page 171 of 201
4.7 Termination of Participation. Unless provided otherwise in the Adoption Agreement, a Participant
automatically ceases to be a Participant at midnight of the earliest of the following dates:
(a) The date of the termination of the Participant's employment with the Employer;
(b) The date of the death of the Participant;
(c) The date the balance of the Participant's HC Account reaches zero, if no further contributions will
be made to said account under Article VI;
(d) The date on which the Participant's Employer ceases to participate in the Plan and Trust; or
(e) The date of termination of the Plan in accordance with Article X.
Participation may also terminate for cause, including for failing to comply with the conditions of
participation described in Section 4.3 and/or for making fraudulent or improper claims. In certain cases,
if participation is terminated for cause, the Participant's coverage may be terminated retroactively to the
date on which the event giving rise to the cause occurred. Termination of participation in this Plan shall
not prevent a former Participant from receiving continuation coverage required by applicable law.
RES.0 Page 172 of 201
ARTICLE V.
BENEFITS UNDER THE PLAN
5.1 Benefits. The Plan shall reimburse Health Care Expenses and Limited Scope Health Care Expenses in
accordance with Section 4.4 and this Article V.
5.2 Health Care (��HC") Account. The Participant's HC Account will be credited with the Employer
Contribution. A Participant's HC Account will be decreased from time to time in the amount of payments
made to the Participant for benefits.
5.3 Claims for Reimbursement. A Participant may obtain reimbursement of Eligible Expenses by
submitting a paper claim or through an electronic payment card as described below.
(a) Paper Claims. A Participant may make a claim by completing a claim form and submitting such
form to the Claims Administrator setting forth at least the following:
(1) the amount, date and nature of the expense, including the identity of the individual who
incurred the expense;
(2) the name of the person or entity to which the expense was paid or is owed;
(3) the Participant's statement that the expense has not been reimbursed and the Participant
will not seek reimbursement for the expense; and
(4) such other information as the Claims Administrator may require.
Such claim form shall be accompanied by such bills, invoices, receipts, explanations of benefits
("E0B'� issued by a health plan, or other statements from an independent third party as is
necessary to establish that an Eligible Expense has been incurred and the amount of the
expense, The Claims Administrator is entitled to rely on the information provided on the claim
form in processing claims under this Plan. A claim must be submitted for payment within the
time period indicated in the Adoption Agreement. Where circumstances beyond the Participant's
control prevent submission within the described time frame, notice of a claim with an explanation
of the circumstances may be accepted by the Claims Administrator as a timely filing. Claims shall
be determined in accordance with Article VII.
(b) Electronic Payment Card. A Participant may receive reimbursement of an Eligible Expense by
use of an electronic payment card at the time the Eligible Expense is incurred. The use of the
electronic payment card shall be subject following conditions:
(1) The electronic payment card will be deactivated when a Participant's participation in the
Plan terminates.
(Z) The balance of the electronic payment card shall be limited to 90% of the balance of the
Participant's HC Account.
(3) A Participant must certify in writing prior to issuance of the electronic payment card that:
(i) the electronic payment card will be used only for Eligible Expenses that have not
been reimbursed under any other plan covering similar benefits; and
(ii) the Participant will not seek reimbursement for any expense paid with the
electronic payment card under any other plan covering benefits.
The electronic payment card shall include a statement providing that each use of the
card shall constitute a reaffirmation of the certification.
�]
RES.0 Page 173 of 201
(4) The electronic payment card may be used only at merchants who are health care
providers (e.g., doctor's office, hospital, pharmacy, etc.) or other merchants identified in
applicable IRS guidance.
(5) Each time the electronic payment card is used, a Participant shall obtain and retain a
third party statement from the health care provider containing the information necessary
to substantiate that the expense paid by the card was an Eligible Expense.
(6) Claims shall be substantiated if one of the following conditions is satisfied:
(i) The Participant provides, upon request by the Claims Administrator (or its
designee), the third party statement with respect to the claim.
(ii) The payment was made to a merchant who is a health care provider and it
matches a specific co-payment the Participant has under a group medical or
group dental plan sponsored by the Plan Sponsor or a multiple of that co-
payment of not more than five (5) times the dollar amount of the co-payment.
(iii) The payment was made to a merchant who is a health care provider and is for
an expense with the same amount, duration, and health care provider as a
previously approved expense under this Plan.
(iv) The payment was made to a merchant who is a health care provider and the
electronic claim file with respect to the expense is accompanied by an electronic
or written confirmation from the health care provider that verifies the nature and
amount of the expense and that the expense is an Eligible Expense.
(v) The electronic payment card is used at a merchant (of any kind) that participates
in an inventory information approval system developed by the card provider that
verifies, at the time of purchase, that the goods being purchased constitute
medical care.
(7) Special rules apply to the use of the electronic payment card to purchase over-the-
counter drugs and medicines other than insulin. Notwithstanding the rules described
above regarding the use of the card to purchase medical care, the card may be used to
purchase such over-the-counter drugs and medicines only in the following circumstances:
(i) At any 90% pharmacy if the expense is substantiated after the purchase in
accordance with paragraph (6)(i) above.
(ii) At drug stores, pharmacies, non-health care merchants that have pharmacies,
and mail order or web-based merchants that sell prescription drugs if (a) the
cardholder presents the prescription to the pharmacist; (b) the pharmacist
assigns a prescription number and dispenses the over-the-counter drug or
medicine in accordance with applicable law; (c) the pharmacy retains a record of
the transaction, including the name on prescription, prescription number, date,
and the amount of the purchase; (d) the pharmacy's records are accessible by
the employer or its agent; (e) the debit card system does not allow over-the-
counter drugs or medicines without a prescription number; and (� the expense is
substantiated in accordance with the standard rules described above in
paragraph (6).
(iii) At merchants having healthcare related merchant codes (other than merchants
described in item ii above) if the expense is substantiated in accordance with the
standard rules described above in paragraph (6).
10
RES.0 Page 174 of 201
5.4
��.7
(8) A Participant shal
substantiated (and
Plan shall handle
regulations.
I repay the Plan for a payment with respect to any claim not
therefore not eligible for reimbursement) as required above. The
unsubstantiated claims as required under the Code and applicable
(9) The use of an electronic payment card does not constitute a"claim" under the claims
procedures,
Incurred Expenses.
(a) Reimbursement for Incurred Expenses. An expense is "incurred" when the Participant is
provided with the care giving rise to the eligible expense, not when the service is billed or paid.
The Plan provides reimbursements only for incurred expenses; reimbursements shall not be
made for future projected expenses.
(b) Expenses Incurred After Participation Begins. To be reimbursable, the Participant must
have incurred an eligible expense after his/her Entry Date. Notwithstanding anything herein to
the contrary, if (1) an Employer sponsored or participated in a health reimbursement
arrangement prior to participating in this Plan (the "predecessor HRA'�, and (2) the account
balances of such Employer's Employees and former Employees under the predecessor HRA have
been transferred or contributed to this Plan (as described in the Employer's Participation
Agreement), then for purposes of the rule described in this Section 5.2(b) this Plan shall be
treated as a successor of the predecessor HRA and a Participant's Entry Date shall be the date on
which he/she began participation in the predecessor HRA.
(c) Post-Employment Plans. In addition to the foregoing, if provided in the Adoption Agreement,
the Participant must have incurred the eligible expense after termination of employment with
his/her Employer or such other event identified in the Adoption Agreement. Notwithstanding the
foregoing, if the Adoption Agreement provides that eligible expenses must be incurred after
termination of employment and a Participant with an HC Account balance is rehired by an
Employer after having terminated employment, then any eligible expenses incurred by the
Participant (or the Participant's Spouse or Dependents) during the Participant's period of
reemployment by the Employer shall not be eligible for reimbursement under the Plan. The
restriction on reimbursements described in the preceding sentence shall apply regardless of: (1)
the length of the period of time between the initial separation from service and the
reemployment; (2) the nature of the Participant's employment upon rehire (e.g., whether the
Participant is rehired on part-time, temporary, seasonal, etc. basis); and (3) any other factor
(e.g., vesting status, the number of hours per week the Participant is reemployed to work, etc.).
Upon such reemployed Participants subsequent termination of employment with the Employer,
the Participant shall again become eligible to receive reimbursements from his or her HC Account
for eligible expenses incurred after his or her reemployment ends.
Timing of Reimbursement. Participants shall be reimbursed weekly.
5.6 Maximum Reimbursement. The maximum reimbursement a Participant may receive at any time shall
be the amount of the Participant's HC Account balance at the time the reimbursement request is
processed. The maximum reimbursement requirements apply to the Participant, Spouse, and
Dependents on an aggregate basis, not an individual basis. If a Participant's claim is for an amount that is
more than the Participant's current HC Account balance, the excess, unreimbursed part of the claim will
be carried into the subsequent month(s), to be paid as the balance of the Participant's HC Account
becomes adequate. Notwithstanding the foregoing, the excess, unreimbursed portion of a claim will not
be carried over into the subsequent month(s) if no further contributions will be made to the Participant's
HC Account under Article VI.
11
RES.0 Page 175 of 201
5.7 Termination of Participation.
(a) Termination of Employment. Notwithstanding anything herein to the contrary, unless
specifically provided otherwise in the Adoption Agreement, the former Participant may continue
to access the HC Account following termination of employment for purposes of obtaining
reimbursement of eligible expenses. Such access shall continue until the earliest to occur of the
events identified in Section 4,7(b), (c), (d), or (e). Such access shall also be provided to those
individuals, if any, who at the time of the termination of the Participant's participation were the
Participant's Spouse or Dependents. Such access to the Participant's HC Account by a Spouse
and Dependents shall cease upon the earlier of the date of termination of the Participant's access
or the date the Spouse ceases to be a Spouse or the Dependent ceases to be a Dependent, as
the case may be. If continuation coverage is required by applicable law, the access described in
this Section 5.7(a) shall be provided only if offered as and selected in lieu of such continuation
coverage.
(b) Death.
Notwithstanding anything herein to the contrary, unless specifically provided otherwise in
the Adoption Agreement, in the event a Participant's participation in the Plan terminates
because of the ParticipanYs death, the Participant has no surviving Spouse or
Dependents, and the former Participant incurred a Health Care Expense prior to the
Participant's death that would have been reimbursable out of the Participant's HC
Account but that has not been submitted for reimbursement, the deceased Participant's
estate may submit such Health Care Expense for reimbursement in accordance with
Section 5.3. A certified copy of the deceased Participant's death certificate and proof
that the person acting upon behalf of such Participant's estate has authoriry to do so
must be submitted with such claims.
ii. Notwithstanding anything herein to the contrary, unless specifically provided otherwise in
the Adoption Agreement, the deceased Participant's surviving Spouse, if any, may
continue to access the Participant's HC Account for purposes of obtaining reimbursement
of Health Care Expenses until the earlier of: (1) the date on which the HC Account
balance reaches zero; or (2) the date on which the surviving Spouse dies. No claim shall
be paid to a surviving Spouse pursuant to this subsection (ii) unless a certified copy of
the deceased Participant's death certificate has been provided to the Claims
Administrator. If continuation coverage is required by applicable law, the access
described in this Section 5.7(b)(ii) shall be provided only if ofFered as and selected in lieu
of such continuation coverage.
iii. Notwithstanding anything herein to the contrary, unless specifically provided otherwise in
the Adoption Agreement, the deceased Participant's surviving Dependents, if any, may
continue to access the Participant's HC Account for purposes of obtaining reimbursement
of Health Care Expenses until the earlier of: (1) the date on which the HC Account
balance reaches zero; or (2) the date the last surviving Dependent dies. No claim shall
be paid to a surviving Dependent pursuant to this subsection (iii) unless a certified copy
of the deceased Participant's death certificate has been provided to the Claims
Administrator. If continuation coverage is required by applicable law, the access
described in this Section 5.7(b)(iii) shall be provided only if offered as and selected in lieu
of such continuation coverage.
iv. No one other than the Participant's Spouse and Dependents may have access to the
Participant's HC Account following the Participant's death.
12
RES.0 Page 176 of 201
5.8 Nondiscrimination. This Plan is intended to be nondiscriminatory and to meet the nondiscrimination
requirements under applicable sections of the Code. If the Plan Administrator or an Employer determines
before or during any Plan Year, that the Plan may fail to satisfy any nondiscrimination requirement
imposed by the Code or any limitation on benefits provided to Highly Compensated Individuals, the Plan
Administrator or Employer shall take such action as the Plan Administrator or Employer deems
appropriate, under rules uniformly applicable to similarly situated Participants, to assure compliance with
such requirements or limitation.
5.9 HC Account Forfeitures. Unless provided otherwise in the Adoption Agreement, any amount
remaining in a Participant's HC Account shall be forfeited following the later to occur of: (1) the
termination of Participant's participation in the Plan (including, but not limited to, the Participant's
election to opt out under Section 4.5), (2) the termination of any continuation coverage provided by the
Plan under applicab►e law, or (3) the termination of any coverage provided by the Plan in lieu of
continuation coverage required by applicable law; provided that where participation or coverage is
terminated because of the death of the Participant, forfeiture shall not occur until the expiration of the
time period contained in Section 5.3 for the submission of claims. Notwithstanding the forgoing, a
Participant's HC Account shall also be forfeited if: (i) the balance of the HC account is less than $25, (ii)
no further contributions shall be made to the HC Account, and (iii) no claim has been submitted by the
Participant for a period of six (6) months. In addition, the portion of the Participant's HC Account that is
not vested shall be forfeited upon the Participant's termination of employment. A Participant's interest in
his/her HC Account shall vest as provided in the Adoption Agreement. ForFeited amounts shall be used
for the purposes described in the Adoption Agreement. However, except as allowed under the Trust, no
amounts will revert to an Employer. If the Adoption Agreement indicates that forfeitures shall be
contributed to the HC Accounts of other Participants, the following rules shall apply. Forfeitures occurring
during a Plan Year shall be held in a separate subaccount until the close of the Plan Year. Immediately
following the close of the Plan Year, the forfeitures shall be contributed to the HC Accounts of all
Participants employed by the Employer of the Participant who experienced the forfeiture on the last day
of such Plan Year in the manner provided in the Adoption Agreement (i.e., on a per capita or pro rata
basis). To the e�ent the full balance of the forfeiture subaccount cannot be allocated as provided in the
Adoption Agreement (e.g., because the balance does not divide evenly among the number of
Participants), any balance remaining shall be held in the forfeiture subaccount until the end of the
subsequent Plan Year and allocated at that time.
5.10 Medical Support Orders. Notwithstanding any provision of this Plan to the contrary this Plan shall
recognize medical child support orders as required under applicable state law or under the Child Support
Performance and Incentive Act of 1998. Participants involved in a divorce or child custody matter should
be directed to have their legal counsel contact the Plan Administrator.
5.11 Coordination with Cafeteria Plan. To the extent a Participant's Employer also sponsors a medical
reimbursement program as part of its cafeteria plan within the meaning of Section 125 of the Code, a
Participant participates in the medical reimbursement program, and the Participant or a Covered
Individual covered through such a Participant incurs an eligible expense that is also eligible for
reimbursement under the medical reimbursement program, which program pays first is described in the
Adoption Agreement.
13
RES.0 Page 177 of 201
5.12 Further Limitations on Benefits.
(a) This Plan does not cover expenses incurred for any loss caused by or resulting from injury or
disease for which benefits are payable under any worker's compensation law or other employer,
union, association or governmental sponsored group insurance plan.
(b) This Plan does not cover expenses incurred for any loss caused by or resulting from injury or
disease for which benefits are received by the Participant, the Participant's Spouse or the
Participant's Dependent under any health and accident insurance policy or program, whether or
not premiums are paid by the Employer or by the Participant, the Participant's Spouse or the
Participant's Dependent child.
(c) Amounts reimbursed under a dependent care assistance program described in Section 129 of the
Code shall not be reimbursed under this Plan.
(d) Other limitations, if any, as set forth in the Adoption Agreement.
14
RES.0 Page 178 of 201
ARTICLE VI.
CONTRIBUTIONS AND TRUST
6.1 Employer Contributions. An Employer shall make a fixed contribution per Participant as provided in
the Employer's Participation Agreement. Notwithstanding anything herein to the contrary, an Employer
shall not be required to make contributions for Participants who are not the Employer's Employees or
former Employees.
6.2 No Employee Contributions. Except for contributions required for continuation coverage as described
in Article XII, no contributions other than Employer Contributions are required nor will they be accepted.
6.3 Trust. All contributions shall be held in the Trust. The investment of the assets of the Trust shall be
directed as provided in the Adoption Agreement. Notwithstanding the foregoing, the investment of any
assets of the Trust that constitute forfeitures shall be directed by the Plan Administrator until such time, if
any, that such forfeitures are allocated to the HC Accounts of other Participants.
15
RES.0 Page 179 of 201
ARTICLE VII.
CLAIMS DETERMINATIONS AND REVIEW OF DENIED CLAIM
The following procedures apply:
7.1 General Provisions. All claims and appeals will be adjudicated in a manner so that the independence
and impartiality of the persons involved in making the determination are ensured. Decisions regarding
hiring, compensation, termination, and similar matters with respect to any individual involved in the
determination (e.g., a claims adjudicator or medical expert) shall not be based upon the likelihood that
the individual will support a denial of benefits.
7.2 Initial Claim Determination.
(a) Time Frame for Decision. The Plan must determine the claim within thirty (30) days of receipt
of the claim.
(b) Extension of Time. If the Plan is not able to determine the claim within this time period due to
matters beyond its control, the Plan may take an additional period of up to fifteen (15) days to
determine the claim. If this additional time will be needed, the Plan must notify the claimant or
the claimant's Authorized Representative prior to the expiration of the initial thirty (30) day time
period for determining the claim. This extension is only available once.
Notification: The notification of the need for the extension must include a description of the
"matters beyond the Plan's control" that justify the extension and the date by which a decision is
expected.
(c) Incomplete Claims. There is no special rule if a claim is incomplete. Incomplete claims can be
addressed through the extension of time described above. If the reason for the extension is the
failure to provide necessary information and the claimant is appropriately notified, the Plan's
period of time to make a decision is "tolled."
Tolling: The period of time in which the Plan must determine a claim is suspended from the
date upon which notification of the missing necessary information is sent until the date upon
which the claimant responds.
Notification: For this purpose, notification can be made orally to the claimant or the health
care professional, unless the claimant requests written notice.
The notification will include a time frame in which the necessary information must be provided.
Once the necessary information has been provided, the Plan must decide the claim within the
extension described above. If the requested information is not provided within the time
specified, the claim may be decided without that information.
7.3 Decision.
(a) Notification of Decision. Written (or electronic) notification of the Plan's determination must
be provided to the claimant or the claimant's Authorized Representative. Such notification must
be provided only where the decision is adverse. The notification will be provided in a culturally
and linguistically appropriate manner in accordance with 45 CFR § 147.136, to the extent such
regulation applies to the Plan.
16
RES.0 Page 180 of 201
"Adverse" means:
• A denial, reduction, or termination of a benefit;
• A failure to provide or make payment (in whole or in part) for a benefit; or
• A rescission of coverage under the Plan, which is a cancellation or
discontinuance of coverage under the Plan that has retroactive effect other
than a cancellation or discontinuance attributable to a failure to timely pay or
make required premiums or contributions toward coverage.
(b) Adverse Decision. For adverse claim determinations, the notification shall at a minimum:
• Include information sufficient to identify the claim involved, including the date of service,
the identity of the health care provider, and the claim amount, and to inform the
claimant of the right to receive, upon request, the diagnosis and treatment codes (if any)
and their corresponding meanings upon request;
• State the specific reason(s) for the determination, including the denial code (if any) and
its corresponding meaning, and describe the Plan's standard, if any, used to make the
determination;
• Reference specific Plan provision(s) upon which the determination is based;
• Describe additional material or information necessary to complete the claim and why
such information is necessary;
• Describe the internal appeals and external review processes (if any) available under the
Plan, including how to initiate an appeal and the procedures and time limits applicable to
an appeal;
• Disclose any internal rule, guidelines, protocol or similar criterion relied on in making the
adverse determination (or state that such information will be provided free of charge
upon request);
• Where the decision involves scientific or clinical judgment, disclose either (1) an
explanation of the scientific or clinical judgment applying the terms of the Plan to
claimant's medical circumstances, or (2) a statement that such explanation will be
provided at no charge upon request; and
• Disclose the availability of and contact information for any applicable office of health
insurance consumer assistance or ombudsman established to assist individuals with the
internal claims and appeals and external review processes (if any).
Notice of the adverse determination may be provided in written or electronic form. Electronic
notices will be provided in a form that complies with applicable legal requirements.
(c) Not Adverse Decision. For claim determinations that are not adverse, notice will be provided
that informs the claimant or the claimant's Authorized Representative the claim has been
accepted.
7.4 Access to Relevant Documents.
In order (1) to evaluate whether to request review of an adverse determination, and (2) if review is
requested, to prepare for such review, the claimant or the claimant's Authorized Representative will have
access to all relevant documents.
Relevant: A document, record or other information is "relevant" if it was relied upon in making the
determination, or was submitted to the Plan, considered by the Plan, or generated in the course of
making the benefit determination without regard to whether it was relied upon.
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7.5 Appealing a Denied Claim.
If a claim is denied, in whole or part, the claimant or the claimant's Authorized Representative may
request the denied claim be reviewed.
(a) Requesting Review. The claimant or the claimant's Authorized Representative has a period of
one-hundred eighty (180) days to appeal the claim determination. The appeal request must be
in writing and should be sent to the address specified in the notification of adverse decision
described above.
(b) Full and Fair Review. The clamant will have the right to review the claim file and to present
evidence and testimony. The claimant will be provided, free of charge, with new or additional
evidence considered, relied upon, or generated by the Plan in connection with the claim as soon
as possible and sufFiciently in advance of the date on which the notice of final internal adverse
benefit determination is required to give the claimant a reasonable opportunity to respond prior
to that date. Before the Plan issues a final internal adverse benefit determination based on a
new or additional rationale, the claimant will be provided, free of charge, with the rationale as
soon as possible and sufficiently in advance of the date on which the notice of final internal
adverse benefit determined is required to give the claimant a reasonable opportunity to respond
prior to that date. The review of the adverse benefit determinations will take into account all new
information, whether or not presented or available at the initial determination, No deference will
be afforded to the initial determination.
(c) Consultation with Independent Medical Expert. In the case of a claim denied on the
grounds of a medical judgment, a health professional with appropriate training and experience
will be consulted. The health care professional who is consulted on appeal will not be the
individual who was consulted, if any, during the initial determination or a subordinate of that
individual.
Disclosure: If the advice of a medical or vocational expert was obtained by the Plan in
connection with the claim denial, the names of each such expert shall be provided, regardless of
whether the advice was relied upon.
(d) Time Frame for Decision. If claimant or the claimant's Authorized Representative requests a
review of a denied claim within the time frame described above, the Plan Administrator shall
review the claim and make a determination no later than sixty (60) days from the date the
review request was received.
(e) Decision. The review of the claim will be conducted by the Plan Administrator. It will be made
by a person different from the person who made the initial determination and such person will
not be a subordinate of the original decision maker. The information in the administrative record
shall be reviewed. Additional information submitted shall be considered. The decision shall be
based upon that information plus the terms of the Plan and past interpretations of the same and
similar Plan provisions. The Plan may rely upon protocols, guidelines, or other criterion.
(� Notification of Decision. Written (or electronic) notification of the Plan's determination must
be provided to the claimant or the claimant's Authorized Representative. Such notification must
be provided whether the decision is adverse or not adverse. The notification will be provided in a
culturally and linguistically appropriate manner in accordance with 45 CFR § 147.136, to the
extent such regulation applies to the Plan.
m
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��Adverse" means:
• A denial, reduction, or termination of a benefit;
• A failure to provide or make payment (in whole or in part) for a benefit, or
• A rescission of coverage under the Plan, which is a cancellation or
discontinuance of coverage under the Pian that has retroactive effect other
than a cancellation or discontinuance attributable to a failure to timely pay or
make required premiums or contributions toward coverage. _
(g) Adverse Decision. For adverse appeal determinations, the notification shall reflect at least the
following:
• Include information sufficient to identify the claim involved, including the date of service,
the identity of the health care provider, and the claim amount, and to inform the
claimant of the right to receive, upon request, the diagnosis and treatment codes (if any)
and their corresponding meanings upon request;
• Contain a discussion of the determination, including the specific reason(s) for the
determination, the denial code (if any) and its corresponding meaning, and the Plan's
standard, if any, used to make the determination;
• Reference specific Plan provision(s) upon which the determination is based;
• Describe the external review process (if any) available under the Plan;
• Disclose any internal rules, guidelines, protocol or similar criterion relied on in making the
adverse determination (or state that such information will be provided free of charge
upon request);
• A statement indicating entitlement to receive upon request, and without charge,
reasonable access to or copies of all documents, records or other information relevant to
the determination;
• Where the decision involves scientific or clinical judgment, disclose either (1) an
explanation of the scientific or clinical judgment applying the terms of the Plan to
claimant's medical circumstances, or (2) a statement that such explanation will be
provided at no charge upon request; and
• Disclose the availability of and contact information for any applicable office of health
insurance consumer assistance or ombudsman established to assist individuals with the
external review process (if any).
Notice of the adverse determination may be provided in written or electronic form. Electronic
notices will be provided in a form that complies with applicable legal requirements.
(h) Not Adverse Decision. For claim determinations that are not adverse, notice will be provided
that informs the claimant or the claimant's Authorized Representative the decision has been
reversed, and the claim accepted.
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7.6 Deemed Exhaustion. If the Plan fails to adhere to the requirements described in 45 CFR §
147.136(b)(2), the claimant will be deemed to have exhausted the internal claims and appeals process as
provided in 45 CFR § 147.136(b)(2)(ii)(F), to the e�ent such regulation applies to the Plan.
7.7 External Review. The Plan will provide any applicable external review process that may be required to
be provided by a health reimbursement arrangement under 45 CFR § 147.136, to the extent such
regulation applies to the Plan.
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ARTICLE VIII.
HIPAA PRIVACY AND SECURITY PROVISIONS
The Privacy Rules and Security Rules under HIPAA apply to the Plan.
8.1 Use and Disclosure of PHI. The Plan will use PHI to the e�ent allowed by, and in accordance with,
the uses and disclosures permitted by HIPAA. Specifically, the Plan will use and disclose PHI for purposes
related to health care treatment, payment for health care and health care operations. The Plan will also
use and disclose PHI as required by law and as permitted by authorization of the subject of PHI. If the
Plan discloses PHI to the Plan Sponsor in accordance with this Article VIII, the Plan Sponsor may use and
further disclosure PHI for the same purposes and in the same situations as the Plan may use and disclose
PHI, provided that such use or disclosure is for Plan administration functions performed by the Plan
Sponsor for the Plan or is required by law or permitted by authorization. All uses and disclosures of PHI,
whether by the Plan or by the Plan Sponsor, shall be limited to the minimum PHI necessary to accomplish
the intended purpose of the use or disclosure in accordance with HIPAA. Notwithstanding the foregoing,
neither the Plan nor the Plan Sponsor shall use PHI that is genetic information in a manner that is
prohibited by the Genetic Information Nondiscrimination Act of 2008.
(a) Payment includes activities undertaken by the Plan to obtain premiums or determine or fulfill its
responsibility for coverage and provision of Plan benefits that relate to an individual to whom
health care is provided. These activities include, but are not limited to, the following:
(1) Determination of eligibility, coverage and cost sharing amounts (for example, cost of a
benefit, plan maximums and co-payments as determined for an individual's claim);
(2) Coordination of benefits;
(3) Adjudication of health benefits claims (including appeals and other payment disputes);
(4) Subrogation of health benefit claims;
(5) Establishing employee contributions;
(6) Risk adjusting amounts due based on enrollee health status and demographic
characteristics;
(7) Billing, collection activities and related health care data processing;
(8) Claims management and related health care data processing, including auditing
payments, investigating and resolving payment disputes and responding to participant
inquiries about payments;
(9) Obtaining payment under a contract for reinsurance (including stop-loss and excess of
loss insurance);
(10) Medical necessity reviews or reviews of appropriateness of care or justification of
charges;
(11) Utilization review, including pre-certification, preauthorization, concurrent review and
retrospective review;
(12) Disclosure to consumer reporting agencies related to the collection of premiums or
� reimbursement (the following PHI may be disclosed for payment purposes: name and
address, date of birth, Social Securiry number, payment history, account number and
name and address of provider and/or health Plan); and
21
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(13) Reimbursement to the Plan.
(b) Health care operations include, but are not limited to, the following activities:
(1) Quality assessment;
(2) Population-based activities relating to improving health or reducing health care costs,
protocol development, case management and care coordination, disease management,
contacting health care providers and patients with information about treatment
alternatives and related functions;
(3) Rating provider and Plan performance, including accreditation, certification, licensing or
credentialing activities;
(4) Underwriting, premium rating and other activities relating to the creation, renewal or
replacement of a contract of health insurance or health benefits, and ceding, securing or
placing a contract for reinsurance of risk relating to health care claims (including stop-
loss insurance and excess of loss insurance);
(5) Conducting or arranging for medical review, legal services and auditing function,
including fraud and abuse detection and compliance programs;
(6) Business planning and development, such as conducting cost-management and planning-
related analyses related to managing and operating the Plan, including formulary
development and administration, development or improvement of payment methods or
coverage policies;
(7) Business management and general administration activities of the Plan, including, but not
limited to:
a. Management activities relating to the implementation of and compliance with
HIPAA's administrative simplification requirements;
b. Customer service, including data analyses for policyholders;
(8) Resolution of internal grievances; and
(9) Due diligence in connection with the sale or transfer of assets to a potential successor in
interest, if the potential successor in interest is a covered entity under HIPAA or following
completion of the sale or transfer, will become a covered entity.
8.2 Plan Sponsor's Obligations under the Privacy Rules. Under the Privacy Rules, the Plan may not
disclose PHI to the Plan Sponsor unless the Plan Sponsor certifies that the Plan document has been
amended to provide that the Plan will make such disclosures only upon receipt of a certification from the
Plan Sponsor that the Plan has been amended to include certain conditions to the Plan Sponsor's receipt
of PHI and that Plan Sponsor agrees to those conditions. By adopting this Plan document, the Plan
Sponsor certifies that the Plan has been amended as required by the Privacy Rules and that it agrees to
the following conditions, thereby allowing the Plan to disclose PHI to the Plan Sponsor. The Plan Sponsor
agrees to:
(a) Not use or further disclose PHI other than as permitted or required by the Plan document or as
required by law;
(b) Ensure that any agents, including a subcontractor, to whom the Plan provides PHI received from
the Plan agree to the same restrictions and conditions that apply to the Plan Sponsor with
respect to such PHI;
22
RES.0 Page 186 of 201
(c) Not use or disclose PHI for employment related actions and decisions unless authorized by an
individual;
(d) Not use or disclose PHI in connection with any other benefit or employee benefit plan of the Plan
Sponsor unless authorized by an individual;
(e) Report to the Plan any PHI use or disclosure of which it becomes aware that is inconsistent with
the uses or disclosures permitted hereunder and/or may constitute a"breach" as that term is
defined in HIPAA;
(� Make PHI available for access by the individual who is the subject of the PHI in accordance with
HIPAA;
(g) Make PHI available for amendment and incorporate any amendments to PHI in accordance with
HIPAA;
(h) Make available the information required to provide an accounting of disclosures in accordance
with HIPAA;
(i) Make internal practices, books and records relating to the use and disclosure of PHI received
from Plan available to the HHS Secretary for the purposes of determining the Plan's compliance
with HIPAA; and
(j) If feasible, return or destroy all PHI received for the Plan that the Plan Sponsor still maintains in
any form, and retain no copies of such PHI when no longer needed for the purpose for which
disclosure was made (or if return or destruction is not feasible, limit further uses and disclosures
to those purposes that make the return or destruction infeasible).
8.3 Plan Sponsor's Obligations under Security Rules. If the Plan Sponsor creates, receives, maintains,
or transmits ePHI (other than enrollment and disenrollment information and Summary Health
Information, which are not subject to these restrictions), the Plan Sponsor will:
(a) Implement administrative, physical, and technical safeguards that reasonably and appropriately
protect the confidentiality, integrity, and availability of ePHI;
(b) Ensure that any agents, including subcontractors, who create, receive, maintain, or transmit ePHI
on behalf of Plan Sponsor implement reasonable and appropriate security measures to protect
the ePHI;
(c) Report to the Plan any Security Incident of which it becomes aware; and
(d) Impiement reasonable and appropriate security measures to ensure that only those persons
identified in Section 8.4 have access to ePHI and that such access is limited to the purposes
identified in Section 8.5.
8.4 Adequate separation between the Plan and the Plan Sponsor must be maintained. In
accordance with HIPAA, only the representatives and agents of the Plan Sponsor who are involved in the
administration of the Plan may be given access to PHI and ePHI.
8.5 Limitation of PHI and ePHI Access and Disclosure. The persons described in Section 8.4 above
may only have access to, and use and disclose, PHI and ePHI for Plan administration functions that the
Plan Sponsor performs for the Plan.
8.6 Noncompliance Issues. If the person described in Section 8.4 above does not comply with this Plan
document, the Plan Sponsor shall provide a mechanism for resolving issues of noncompliance, including,
but not limited to, disciplinary action against such person.
23
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ARTICLE IX.
PLAN ADMINISTRATION
9.1 Plan Administrator.
(a) The Plan Administrator shall be responsible for the general supervision of the Plan and shall have
authority to control and manage the operation and administration of the Plan. The Plan
Administrator shall perform any and all acts necessary or appropriate for the proper management
and administration of the Plan.
(b) The Plan Sponsor shall be the Plan Administrator unless it designates a person or persons other
than itself to be the Plan Administrator. The Plan Sponsor shall also be the Plan Administrator if
the person or persons so designated cease to be the Plan Administrator.
(c) The Plan Administrator may designate an individual or entity to act on its behalf with respect to
certain powers, duties, and/or responsibilities regarding the operation and administration of this
Plan.
9.2 Plan Administrator Absolute Authority. Any and all questions or controversies of whatever
character, arising in any manner in connection with the Plan or the operation thereof, shall be submitted
to the Plan Administrator and shall be considered and determined by the Plan Administrator. The Plan
Administrator shall have the sole and absolute discretion to construe and interpret the Plan, including but
not limited consideration of any and all of the provisions, rules, regulations, or procedures used to
interpret the Plan. Benefits under the Plan shall be paid only if the Plan Administrator determines in its
sole and absolute discretion that the claimant is entitled to such benefits. To the extent any Plan
Administrator duties are delegated to others, the Plan Administrator retains the ultimate right and
responsibility, in its sole and absolute discretion, to ultimately decide all appeals. Any exercise by the
Plan Administrator (or its delegate) of the Plan Administrator's sole and absolute discretionary authority
with respect to the construction and interpretation of the Plan, including but not limited to eligibility for
coverage and entitlement to benefits, shall be final and binding.
9.3 Agent for Service of Legal Process. The agent for service of legal process for the Plan is the Plan
Administrator.
9.4 Allocation of Responsibility for Administration. The Plan Administrator shall have the sole
responsibility for the administration of this Plan as is specifically described in this Plan. The designated
representatives of the Plan Administrator shall have only those specific powers, duties, responsibilities,
and obligations as are specifically given to them under this Plan. The Plan Administrator warrants that
any directions given, information furnished, or action taken by it shall be in accordance with the
provisions of the Plan authorizing or providing for such direction, information or action. It is intended
under this Plan that the Plan Administrator shall be responsible for the proper exercise of its own powers,
duties, responsibilities, and obligations under this Plan and shall not be responsible for any act or failure
to act of an Employee or Employer. Neither the Plan Administrator nor the Plan Sponsor makes any
guarantee to any Participant in any manner for any loss or other event because of the Participant's
participation in this Plan.
9.5 Rules and Decisions. Except as othenrvise specifically provided in the Plan, the Plan Administrator may
adopt such rules and procedures as it deems necessary, desirable, or appropriate. All rules and decisions
of the Plan Administrator shall be uniformly and consistently applied to all Participants in similar
circumstances. When making a determination or calculation, the Plan Administrator shall be entitled to
rely upon information furnished by a Participant, the Employer, or legal counsel, or other entity acting on
behalf of the Employer or the Plan Administrator.
9.6 Records and Reports. The Plan Administrator shall be responsible for complying with all reporting,
filing and disclosure requirements for the Plan.
24
RES.0 Page 188 of 201
9.7 Authorization of Benefit Payments. The Plan Administrator (or the Claims Administrator as its
designee) shall issue directions to the Trustee concerning all benefits which are to be paid from the Trust,
pursuant to the provisions of the Plan, and warrants that all such directions are in accordance with the
Plan.
9.8 Other Powers and Duties of the Administrator. The Plan Administrator shall also have such other
duties and powers as may be necessary to discharge its duties under the Plan including, but not limited
to, the following:
(a) Discretion to construe and interpret the Plan in a non-discriminatory manner, to decide all
questions of eligibiliry and to determine all questions arising in the administration and application
of the Plan;
(b) To receive from the Employer and from Participants such information as shall be necessary for
the proper administration of the Plan;
(c) To furnish the Plan Sponsor, upon request, such annual reports with respect to the
administration of the Plan as are reasonable and appropriate; and
(d) To appoint individuals to assist in the administration of the Plan and any other agents the Plan
Administrator deems advisable including legal and actuarial counsel. The Plan Administrator shall
not have the power to add to, subtract from, or modify any of the terms of the Plan, to change
or add to any benefits provided by the Plan, or to waive or fail to apply any requirements of
eligibility for a benefit under this Plan.
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RES.0 Page 189 of 201
ARTICLE X.
PLAN AMENDMENT AND TERMINATION
10.1 Amendment by Plan Sponsor. The Plan Sponsor reserves the right to amend, alter, or wholly revise
this Plan or the Adoption Agreement, prospectively or retrospectively, at any time, and the interest of
each Participant is subject to the powers so reserved. The Plan Sponsor expressly may amend, alter or
wholly revise this Plan or the Adoption Agreement if it determines it necessary or desirable, with or
without retroactive effect, to comply with the law. Such changes shall not affect any right to benefits
that accrued prior to such amendments. Such amendment shall be made in writing and shall be
delivered promptly to the Claims Administrator, Plan Administrator, and Trustee.
10.2 Plan Sponsor's Right to Terminate. Although the Plan Sponsor expects the Plan to be maintained for
an indefinite time, the Plan Sponsor reserves the right to terminate the Plan or any portion of the Plan at
any time. Such termination shall not affect any right to benefits that accrued prior to such termination.
Such action shall be made in writing and shall be delivered to the Claims Administrator, Plan
Administrator, and Trustee at least ninety (90) days prior to the effective date of the termination.
26
RES.0 Page 190 of 201
ARTICLE XI.
GENERAL PROVISIONS
11.1 No Reversion to the Plan Administrator, Plan Sponsor, or Employer. Except as specifically
allowed under the Trust, no part of the corpus or income of the Trust shall revert to the Plan
Administrator, the Plan Sponsor, or an Employer, or be used for or diverted to, purposes other than the
exclusive benefit of participants and other persons entitled to benefits under the Plan.
11.2 Persons Dealing With Trust. No person dealing with the Trust shall be required to see to the
application of any money paid or property delivered to the Trust, or to determine whether or not the
Trust is acting pursuant to any authority granted to them under the Trust.
11.3 Non-Alienation of Benefits. Benefits payable under this Plan shall not be subject to anticipation,
alienation, sale, transfer, execution, or levy of any kind either voluntary or involuntary, including any such
liability which is for alimony or other payments for the support of a spouse or former spouse, or for any
other relative of the Participant, prior to actually being received by the person entitled to the benefit
under the terms of the Plan, and any attempt to anticipate, alienate, sell, transfer, assign, pledge,
encumber, charge or otherwise dispose of any right to benefits payable under the Plan shall be void. The
Plan Sponsor, Plan Administrator and/or Claims Administrator shall not in any manner be made liable for,
or subject to, the debts, contracts, liabilities, engagements or torts of any person entitled to benefits
under the Plan.
11.4 Action by Plan Sponsor. Whenever the Plan Sponsor, under the terms of this Plan, is permitted or
required to do or perform any act or matter or thing, it shall be done and performed by the Plan Sponsor
or such representatives of the Plan Sponsor as it may designate.
11.5 No Guarantee of Tax Consequences. Notwithstanding any provision in this Plan to the contrary, this
Plan makes no commitment or guarantee that any amounts paid to or on behalf of a Participant under
this Plan will be excludable from the Participant's gross income for federal or state income tax purposes.
It shall be the obligation of each Participant to determine whether each payment is excludable from the
Participant's gross income for federal and state income tax purposes, and to notify the Plan Administrator
if the Participant has reason to believe that any such payment is not so excludable.
11.6 Compensation and Expenses. The cost of administering the Plan and Trust shall be paid as described
in the Adoption Agreement.
11.7 Governing Law. This Plan shall be construed and enforced according to the laws of the State identified
in the Adoption Agreement, except to the extent preempted by federal law.
11.8 Family and Medical Leave Act of 1993 ("FMLA"). Notwithstanding any provision of this Plan to the
contrary, this Plan shall be operated and maintained in a manner consistent with FMLA, to the extent the
Employer is subject to such law.
11.9 Newborns' and Mothers' Health Protection Act ("NMHPA"). Notwithstanding any provision of this
Plan to the contrary, this Plan shall be operated and maintained in a manner consistent with NMHPA.
Federal law requires the following statement be included in the Plan document, verbatim:
Under federal law, group health plans and health insurance issuers offering group health insurance
generally may not restrict benefits for any hospital length of stay in connection with childbirth for the
mother or newborn child to less than 48 hours following a vaginal delivery, or less than 96 hours
following a cesarean section. However, the plan or issuer may pay for a shorter stay if the attending
physician (e.g., your physician, nurse, or midwife, or a physician assistant), after consultation with the
mother, discharges the mother or newborn earlier. Also, under federal law, plans and issuers may not
set the level of benefits or out-of-pocket costs so that any later portion of the 48-hour (or 96-hour) stay
is treated in a manner less favorable to the mother or newborn than any earlier portion of the stay. In
addition, a plan or issuer may not, under federal law, require that a physician or other health care
27
RES.0 Page 191 of 201
provider obtain authorization for prescribing a length of stay of up 48 hours (or 96 hours). However, to
use certain providers or facilities, or to reduce your out-of-pocket costs, you may be required to obtain
precertification. For information on pre-certification, contact your Plan Administrator.
11.10 Women's Health and Cancer Rights Act of 1998 ("WHCRA"). Notwithstanding any provision of
this Plan to the contrary, this Plan shall be operated and maintained in a manner consistent with WHCRA.
11.11 Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"). Notwithstanding any
provision of this Plan to the contrary, this Plan shall be operated and maintained in a manner consistent
with COBRA. The Plan Administrator may, within the parameters of the law, establish uniform policies by
which to provide such continuation coverage required by COBRA and such policies shall be incorporated
herein by reference.
11.12 Uniformed Services Employment and Reemployment Rights Act of 1994 (��USERRA").
Notwithstanding any provision of this Plan to the contrary, this Plan shall be operated and maintained in a
manner consistent with USERRA. The Plan Administrator may, within the parameters of the law, establish
uniform policies by which to provide such continuation coverage required by USERRA and such policies
shall be incorporated herein by reference.
11.13 Plan Not a Contract of Employment. The Plan is not an employment agreement and does not assure
the continued employment of any Employee or Participant for any period of time. Nothing contained in
the Plan shall interfere with the Employer's right to discharge an Employee at any time, regardless of the
effect such discharge may have upon the individual as a Participant in this Plan.
11.14 Erroneous Payments. If the Plan makes a payment for benefits in excess of the benefits required by
the Plan or makes a payment to or on behalf of an individual who is not currently covered by the Plan,
the Plan shall be entitled to recover such erroneous payment from the recipient thereof.
11.15 Medicare Secondary Payer. The Plan shall comply with the Medicare secondary payer rules found in
42 U.S.C. § 1395y. In general, the Plan shall pay benefits primary to Medicare if any one of the following
conditions is satisfied: (a) any Employer employed twenty (20) or more employees for each working day
in at least twenty (20) weeks in either the calendar year in which the claim is made or the preceding
calendar year, the Participant is employed by the Employer, and the Participant is actually covered by
Medicare by reason of obtaining the age of 65; (b) any Employer employed 100 or more employees on at
least 50% of its regular business days during the calendar year preceding the year in which the claim was
made, the Participant is employed by the Employer, and the Participant is actually covered by Medicare
by reason of disability; and (c) the Participant is entitled to Medicare by reason of end stage renal disease
and the claim is made during the thirty (30) month period beginning in the first month in which such
Participant is entitled to benefits under Medicare (regardless of whether he/she applies for such benefits).
In all other cases, the Plan shall pay benefits secondary to Medicare. Notwithstanding the foregoing, in
the case of age-based Medicare coverage, the Plan may pay benefits secondary to Medicare with respect
to any Participant employed by an Employer that employed fewer than twenty (20) employees for each
working day in at least twenty (20) weeks in either the calendar year in which the claim is made or the
preceding calendar year, provided the Plan has elected in accordance with applicable law to not have the
Medicare secondary payer rules apply with respect to such Participants.
11.16 Medicare Part D. The Plan shall cooperate with Medicare Part D prescription drug plans (and Covered
Individuals who are enrolled in such plans) with respect to coordination of benefits between the Plan and
the Medicare Part D plan, including the provision of information to the Medicare Part D plan (or the
Covered Individuals) regarding the benefits provided under the Plan for costs covered by the Medicare
Part D plan. Covered Individuals enrolled in Medicare Part D plans shall cooperate with the Plan so that
the Plan may perform its obligations under this subsection.
11.17 Exhaustion of Administrative Remedies; Statute of Limitations. For all claims subject to the
administrative procedures described in Article VII, exhaustion of those administrative procedures is
required prior to the initiation of a legal action. Thereafter, unless specifically provided otherwise in the
28
RES.0 Page 192 of 201
Adoption Agreement, legal action by a Participant, or someone on behalf of a Participant, must be
initiated within one (1) year of receipt of the written notification of denial upon appeal. To the extent
exhaustion of the appeal process is not required, a Participant, or someone on behalf of the Participant,
must initiate legal action within one (1) year of having submitted the initial claim request to the Plan
Administrator, or its designee. No legal action may be brought by a Participant, or someone on behalf of
the Participant, after expiration of the applicable limitations period. This Section 11.17 shall apply to the
extent the provisions hereof are not prohibited by applicable law.
11.18 Michelle's Law. Notwithstanding any provision of this Plan to the contrary, this Plan shall be operated
and maintained in a manner as required by Michelle's Law.
11.19 Health Care Reform. The Plan is intended to be exempt from the provisions of the Patient Protection
and AfFordable Health Care Act ("PPACA'�, as amended by the Health Care and Education Reconciliation
Act ("Reconciliation Act'�, to the fullest e�ent allowed by law. The Plan may be exempt from one or
more provisions of PPACA for the following reasons:
(a) If provided in the Adoption Agreement, the Plan is intended to be a grandfathered plan within
the meaning of section 1251 of PPACA.
(b) If, to be eligible to receive contributions under the Plan, a Participant must be covered under an
employer-sponsored group medical plan (whether sponsored by the Plan Sponsor, an Employer,
or another employer), then the Plan is intended to be an integrated HRA as defined under
applicable regulatory guidance,
(c) If expenses must be incurred after the Participant's termination of employment with an Employer
to be reimbursable under the Plan (as provided in Section 5.4), the Plan is intended to cover
fewer than two current Employees of the Employers (i.e., the Plan is a"retiree-only" HRA).
(d) If provided in the Adoption Agreement, the Plan is intended to be an excepted benefit under the
HIPAA portability rules.
For purposes of the foregoing, to the e�ent necessary to ensure the Plan is either an integrated HRA, a
retiree-only HRA, or an excepted benefit under HIPAA, the Plan described in this document shall be
disaggregated into separate plans each of which will be either an integrated HRA, a retiree-only HRA, or
an excepted benefit under HIPAA. In the event such disaggregation is necessary, each disaggregated
plan shall be treated and operated as a separate plan for all purposes.
RES.0 Page 193 of 201
RES.0 Page 194 of 201
EMPLOYERS HEALTH COALITION VEBA
PARTICIPATION AGREEMENT
This Participation Agreement is entered into by and between City of Auburn ("Employer'� and the
Plan Administrator of the EHC VEBA HRA (the "Plan'� to reflect the parties' agreement regarding the
Employer's participation in the Plan and the EHC VEBA Trust (the "Trust'�. The parties hereby agree as
follows:
Benefits. The Employer hereby agrees to participate in the Plan and Trust for the purpose of
providing coverage under the Plan to its eligible employees. The Plan Administrator consents to
such participation. The Employer agrees to comply with the terms and conditions of the Plan and
Trust as well as of this Participation Agreement. The Employer further agrees that the Plan
Administrator shall have power to construe the provisions of the Plan and Trust, and agrees to
abide by the decisions of the Plan Administrator and its authorized representatives with respect
to the maintenance and administration of the Plan and Trust to the extent such decision is made
in good faith and in accordance with the Plan and Trust.
2. Eligibility. In addition to satisfying the eligibility requirements described in the Plan, employees
of the Employer must satisfy the following conditions to become participants in the Plan:
� Employment Classification (e.g., union, part-time, full-time) (Describe):
The plan benefits both active and terminated employees
� Coverage under a specified group medical plan (Describe):
Union members OR Employees covered under Employer Group Health Plan
❑ Coverage under the group medical plan sponsored by the Employer
❑ Other (Describe):
Contributions. The Employer will make the following contributions to the Plan and Trust:
One Time Contribution:
� Amount (Describe):
The amount of the eligible employee's final account balance under the HRA/VEBA
administered by HRA VEBA Service Group will be transferred to the Plan.
❑ Restrictions, if any (Describe):
Contributed on (Identify Date): On or around )anuary 1, 2016
RES.0 Page 195 of 201
Recu rri nc�Contri buti ons:
� Amount (Describe):
See attached Accumulated Sick Leave Reimbursement Schedule
❑ Per month
❑ Per quarter
❑ Peryear
� Other (Describe): Semi-monthly
❑ Restrictions, if any (Describe):
� Annual Contribution of Accumulated Paid Time Off, Vacation, or Sick Leave (Describe):
See attachment
� Contribution of Accumulated Paid Time Off, Vacation, or Sick Leave Upon Termination of
Employment (Describe): See attachment
4. Participation of Retirees. Notwithstanding anything in the Plan to the contrary with respect to
termination of contributions and participation in the Plan, if provided below, former employees of
the Employer may continue to receive contributions to the Plan and/or continue to participate in
the Plan despite the fact their employment with the Empioyer has terminated.
� N/A — no retiree coverage provided.
❑ Retiree coverage shall be provided as follows (Describe eligible retirees and terms
and conditions of their continued participation):
Administrative Fees. Administrative fees of the Plan and Trust incurred with respect
to individuals participating in the Plan through the Employer shall be paid as follows:
❑ Fixed fees shall be paid by the Employer; asset-based fees shall be charged to the
Participant and paid from the Participant's HC Account.
❑ All fees shall be paid by the Employer.
� All fees shall be charged to the Participant and paid from the Participant's HC
Account.
❑ Other (Describe):
6. Cooperation with Service Providers. The Employer shall cooperate with all third parties
providing services to the Plan and Trust. The Employer shall provide to such service providers
any and all information reasonably requested for the purpose of enrolling eligible employees into
the Plan, allocating contributions to participant accounts, and the like.
7. Obligations With Respect to COBRA. The Plan Administrator acknowledges that the Plan is
responsible for providing COBRA coverage to eligible covered employees and their eligible
2
RES.0 Page 196 of 201
dependents under the Public Health Services Act. To enable the Plan to satisfy its COBRA
obligations, the Employer will notify the Plan Administrator within 30 days of the following
"qualifying events" (as that term is defined under COBRA) with respect to its employees covered
by the Plan: (1) the death of the covered employee; or (2) the termination (other than by
reason of such employees' gross misconduct), or reduction of hours, of the covered employees'
employment. The Employer agrees to comply with any statutory changes in its notification
obligations that become effective during the term of this Agreement. The Employer agrees to
indemnify the Plan against all losses that the Plan and/or the Plan Administrator incurs as a result
of the Employer's failure to comply with its notification obligations set forth in this Section 7.
8. Plan and Trust Obligations. The Employer understands that the Plan and Trust shall not be
obligated to provide benefits to any eligible employee of Employer unless and until the Plan
Administrator accepts this Agreement by signing where indicated below.
Amendment. This Agreement may be amended at any time by the written consent of the
Employer and the Plan Administrator.
10. Term. The provisions of this Agreement shall become efFective as of January 1, 2016, and shall
remain in effect until the Employer ceases participation in the Plan and Trust in accordance with
the terms thereof.
11. Authority. This Agreement is the valid and binding obligation of the Employer, enforceable in
accordance with its terms. The adoption of the Plan and execution and performance of this
Agreement has been duly authorized by all necessary action of the Employer's governing body.
The Employer has the full legal right, power and authority to enter into and perform the
Agreement. Each party represents that this Agreement has been executed by a duly authorized
representative.
IN WITNESS WHEREOF, the �mployer and the Union hereby execute this Agreement effective
as of the date specified in Section 10 above.
EMPLOYER
By: _
Title
3
PLAN ADMINISTRATOR
By:
Title
RES.0 Page 197 of 201
Teamsters Union Local No. 117
• Semi-monthly Contributions
• The City �r�ill contribute 2.75% of the empioyee's s2mi-monthiy base salary.
• Emp!oyees are required to contribute 1% of their semi-monthly base salary.
Accumulated Sick Leave Reimbursement
All employees eligible for sick leave reimbursement will vote on the percentage of reimbursement to be
contributed the foilo�ving year. The Union will notify tne City by November 30`" the perc2ntage to be
contributed.
When an employee has accumulated 960 hours of sicl< leave, sick leave shaii continue to accumulate at the
normal rate of 4 hours per pay period until the end of the calendar year at which time all sick leave
accumulated by the empioyee in excess of 960 hours shall be paid at 25% of the employee's then hourly rate
and contributed to the VEBA/HRA based upon the percentage voted upon as described above.
All employees who are eligible to receive sick leave cash out upon retirement or termination of employment in
good standing shall transfer the voted upon percentage to the VEBA/HRA.
International Association of Machinists and Aerospace Workers local 164
• Semi-monthly Contributions
•' The City will make a contribution ta match the emplayee's first 1% base wages. :
• Employees are required to contribute 3°%
Annual Accumulated Sick Leave Reimbursement
When an employee has accumulateci 960 hours of sick leave, sick leave shall continue to accumulate at the
normal rate of 8 hours per month until the end of the calendar year at which time all sick leave accumulated in
excess of 960 ho�u-s shaU be reimbursed at 25% of the employee's then hourly base rate and contributed to
the VEBA/HRA.
Police Sergeants' Association
• Available to Commissioned LEOFF II employees that do not have a military medical retirement plan.
• Semi-monthiy contributions
• Employees are required to contribute 1% base pay period salary.
Annual Accumulated Sick Leave Reimbursement
When an employee accumulates 900 hours of sick leave, the sick leave shall continue to accumulate at the
normal rate of 8 hours per month until the end of the calendar year at �vhich time ail sicl< leave accumulated in
excess of 960 hours shall be reimburs2d at 2595 of tne employ�e's then hourly base rate and contributed to
thz VE6A/HRA.
Accumulated Sick lea��e Reimours2ment at Se�aiation of Emolo�/m2nt
Employees hired prior to 12/1/93, upon retirei�ient, death or tzrmination of good standing shall contribute
reim�ursed �mused sid< 12ave in the follo�ving manner:
Yeais of Se�vice Pzrcent of Accruad Sid< Leave
0—�l years 0°� (e;<ce�t death ii� th� line of duty, 25°��)
5 — 14 years Z5`;�
15 — 24 years 50°%
25 y�arS clnd OV2C ZOO;o
Emplo��e2s hired aft2r 11/3J/93 snali contrib�_ate r2imbursed un�ued sid:l2�ve up to a ma;<im:im o� 950 hours.
Y�ars o� Se�vice Percent of Accrued Sicl< Lea���
RES.0 Page 198 of 201
0— Completion of 14 years
14 years and over
25 years and over
0%
35% upon retirement, death or disability retirement
45°0 �vith a minimum of 480 hours of bank sick leave upon
separation of employment in good standing.
Police Management Association
• Available to Commissioned LEOFF )I employees belonging to the Police Management Assoc.
bargaining unit who do not have a military medical retirement plan.
• Bi-monthly Contributions
• The City wili contribute 2% of employee's base pay period salary.
+ Empioyees are required to contribute 2°l0 of their base annual salary
Annua! Accumulated Sick Leave Reimbursement
When an employee accumulates 960 hours of sickleave, the sick leaveshall continue to accumulate '
at the normal rate of 8 hours per month until the end of the calendar year at which time ali sick
leave accumulated in excess of 960 hours shali be reimbursed at 25% of the employee's then'houriy ;
rate and contributed to the VEBA/HRA. `
Accumulated Sick Leave Reimbursement at Separatioh of Emplovment
Upon retirement, death, orterminatian of good standing, employees shall be reimbursed at current '
rate af pay for unused accrued sick leave up to a maximum af 960 hours in accordance with the - '
following schedule based on continuous years of service. These reimbursements will be made into :
the VEBA/HRA.
Years of Service Percent of Accrued Sick Leave
-0— 4 years �% (except death in the line of duty, 25%j
5-14 years 25%
15-24 years 5040
25 years and ov2r 100°l0
Employees hired into the Commissioned Officers Guifd or the Auk�urn Pofice Management Association after
November 30, 1993 shall nat be subject to the above sicl< leave cash out provisions 6ut shail be reimbursed for
35% of accumulated and un�ised sick leave upan separation of employment in gaod standing,'retirei7ient,
dzath, or disability retirement. This reimbursement �vill be contrib;,ted to the VEBA/HRa.
Emp(oyees hired into the Commissioned Officers Guild or the Auburn Police Manag2ment Association after
November 30, 1993 with a minimum af 430 hours of accumulated anci unused sid< leave and a minimum of 25
years of service shall be reimburs2d for 45% of accumulated and unused sid< leave upon separation of
employmen� in good standing, retire�Y�ent, death, or disability retirement. This reimbursement ��riN be
contributed to the VEBAJHRA.
Commanders are reimbursed for 10�°» of accumulated and unused sick leave. This reimbursement v✓ili be
contributed to the HRA/VEBA.
RES.0 Page 199 of 201
Police Guild
Semi-monthly Contributions
The City will make a contribution of 1% of base pay period salary
Employees are required to contribute 1% base annual salary
Annual Accumulated Sick Leave Reimbursement
When an employ22 has accum�ilated 960 hours of sick leave, sick leave shall be continue to
accumulate at the normal rate of 8 hours per month until the end of the calendar year at which time
all sici< time accumulated by the employee in excess of 960 hours shall be paid at 25°io of the
employee's then hourly base rate and contributed to the HRA/VEBA.
Accumulated Sick Leave Reimbursement at Retirement
All employees coverecl by this collective bargaining agreement who retire from the City of Auburn
will transfer unused accumulated sici< leave to the VEBA/HRA. The members of the Commissioned
Unit who are eligible to retire each year will vote on the provision each year prior to the year in
which they will retire. The Guild will notify HR of the result of the vote (yes or no on the provision
and the percentage of contribution) by November 30`n
For employees hired into the collective bargaining unit prior to December 1, 1993 upon retirement,
death or termination of good standing the employee shall be reimbursed at current rate of pay for
unused accrued sick leave up to a maximum of 960 hours in accordance with the following schedule
based on continuous years of service. These reimbursements will be made into the VEBA/HRA.
Years of Service
0-4 years
5-14 years
15-24 years
25 years and over
% of Accrueci Unused Sick Leave
0% (except death in line of duty; 25%)
25°'0
50%
100 %
Employees hired into the coliective bargaining unit after November 30, 1993, shali be reimbursed at
the current rate of pay for unused accrued sick leave up to a maximum of 960 hours in accordance
�vith the follo�,ving schedule based on continuous years of service. These reimbursements �vill be
made into the VEBa/HRA.
Years of Service
0-14 years
14 years
25 y2ars and over
UnaFfiilia'te�1 Empl�yees
� Semi-monthiy Cantribution
% of Accrued Unused Sicl< Leave
0°ro
35% Upon retirement, death or disabilfty retirement
45% With a minimum of 480 hours of banked, �mused sid<
leav2 upon separation from empioyment in good standina
e Upp2r mana;ement employe�s will mal<e a 33o employ2e contribution
• Ge�eral unaffifiatecl employees Uril! make a 1.5�o emplayee contribution
• The City �+�ili make a 2°ro contribution for all elijibie tanaffiiiated employe2s
��ulicable to �mplo�,���s t3ir�d on or after ? f 1/1985
finnual Acr�ir73��lated S'scf< Leave Reimbursemer�t
Empl�yees �v �o have exc�edzd an accumulati�i� of 960 F�o�rs oi sici< le��� ar;:� v^�oi�ltJ o;her��+iis� I��se
thz excess �t the end of tne cal��ndar year: the City ti��rili �ay �n er7ipio�,ee 25�-� �f tl�� �ccu�,�ula�ed
and �mu�e� sic': i�ave �ve~ �50 hours on rzcord as af D�c�mbzr 31 o�f �ac�� vea� an�l eontricute it to
RES.0 Page 200 of 201
the VESA/HRA.
Accumul�ted Sick Leave Reimburs2ment �t Separation of Empfovment
When separating from empioyment, employees who have in excess af 960 hours accrued at the
time of separation will be reimbursed at 25% of the difference between the accrued amount and :
960 hours. This reimbursement will be contributed to the VEBA/HRA.
RES.0 Page 201 of 201