HomeMy WebLinkAbout07-09-2018 CITY COUNCIL STUDY SESSION AGENDACity Council Study Session Muni
Serv ices S FA
J uly 9, 2018 - 5:30 P M
Council Chambers - City Hall
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I I .A NNO UNC E ME NT S , R E P O RT S , A ND P R E S E NTAT I O NS
I I I .A G E ND A I T E MS F O R C O UNC I L D I S C US S I O N
A .J ohnston Sewer Payback A greement (Gaub) (10 Minutes)
A n Ordinance of the City Council of the City of A uburn, Washington, authorizing the
Mayor and City Clerk to execute a Payback A greement between the City of Auburn and
J eff and Gwen J ohnston for a Utility E xtension
B .Ordinance No. 6686 (Tate)
A mendments to Auburn City Code S ection 3.60.036 related to the renewal of the
construction sales tax exemption program.
I V.MUNI C I PA L S E RV I C E S D I S C US S I O N I T E MS
A .S urrender Firearms Protocols (P ierson) (20 Minutes)
P resentation on the protocols for surrendering firearms.
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Agendas and minutes are available to the public at the City Clerk's Office, on the City website
(http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review
at the City Clerk's Office.
Page 1 of 58
AGENDA BILL APPROVAL FORM
Agenda Subject:
Johnston Sewer Payback Agreement (Gaub) (10 Minutes)
Date:
June 26, 2018
Department:
CD&PW
Attachments:
Draft Ordinance No.6685
Vicinity Map
Johns ton Payback PowerPoint
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
For Discussion Only.
Background Summary:
State law (RCW 35.91.020) and City code (ACC 3.25) allow a developer to enter into an
agreement with the City to seek reimbursement from the other benefited properties when and
if those property owners connect to a public facility constructed by the developer. In the City
of Auburn, that agreement is called a “Payback Agreement.”
Jeff and Gwen Johnston entered into a Facility Extension Agreement (FAC15-0010) with the
City to design and construct approximately 300 feet of 8-inch diameter sewer main and two
manholes that can serve six residential parcels on ‘I’ Street NE. They have requested a
payback agreement with the City to recover a portion of the cost of the design and
construction of those improvements when other benefiting properties choose to connect to
the system.
Staff will present an overview of this project and answer questions regarding proposed
Payback Agreement 2018-01 between the City and the Johnstons in advance of the July 16th
City Council meeting, where a public hearing will be held and the City Council will consider
Ordinance 6685 for adoption.
Rev iewed by Council Committees:
Councilmember:Staff:Gaub
Meeting Date:July 9, 2018 Item Number:
Page 2 of 58
***draft***
------------------------------
Ordinance No. 6685
July 2, 2018
Page 1 of 3
ORDINANCE NO. 6 6 8 5
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE A PAYBACK AGREEMENT
BETWEEN THE CITY OF AUBURN AND JEFF AND GWEN
JOHNSTON FOR A UTILITY EXTENSION
WHEREAS, Chapter 3.25 of the Auburn City Code (ACC) authorizes the
City Engineer to develop, implement and administer, and the City Council to
approve, extension payback agreements for utility improvements; and
WHEREAS, Jeff and Gwen Johnston have constructed the utility
improvements described in the payback agreement that is attached as Exhibit D;
and
WHEREAS, Jeff and Gwen Johnston have provided the City with a map and
legal descriptions identifying the boundaries of the assessment reimbursement
area and each parcel that shall be subject to an assessment for the utility
improvements; and
WHEREAS, Jeff and Gwen Johnston have provided the City with the total
cost of the improvements and a preliminary reimbursement roll showing the
proposed assessment for each parcel of property within the assessment
reimbursement area; and
WHEREAS, the City notified each owner of record of a lot, tract, or parcel
within the reimbursement assessment area, through publication and certified mail,
of a public hearing to consider this ordinance; and
WHEREAS, the City Council held a public hearing and took testimony on
the desirability and sufficiency of the assessment reimbursement area, the
Page 3 of 58
***draft***
------------------------------
Ordinance No. 6685
July 2, 2018
Page 2 of 3
methods of calculating reimbursement assessments, and the assessment
amounts; and
WHEREAS, the City Council finds that entry into the payback agreement is
in the best interest of the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. The assessment reimbursement area that shall be subject to
assessment by the City for the cost of the utility system improvement completed
by Jeff and Gwen Johnston is established as that area described in Exhibit A and
shown in Exhibit B, both exhibits herein incorporated herein by this reference.
Section 2. The amount of the reimbursement assessment to be charged
to each lot, tract or parcel within the assessment reimbursement area is
established as those amounts listed in Exhibit C, which is incorporated herein by
this reference.
Section 3. The Mayor of the City of Auburn and the Auburn City Clerk
are herby authorized to execute an Agreement between the City of Auburn and
Jeff and Gwen Johnston for the collection of assessments in the amounts and from
the owners of the lots, tracts, and parcels established in this ordinance, which
agreement shall be in substantial conformity with the agreement attached hereto,
marked as Exhibit D and incorporated herein by this reference.
Section 4. Implementation. The Mayor is hereby authorized to implement
such administrative procedures as may be necessary to carry out the directions of
this legislation.
Section 5. Severability. The provisions of this ordinance are declared to
be separate and severable. The invalidity of any clause, sentence, paragraph,
subdivision, section or portion of this ordinance, or the invalidity of the application
thereof to any person or circumstance shall not affect the validity of the remainder
of this ordinance, or the validity of its application to other persons or circumstances.
Page 4 of 58
***draft***
------------------------------
Ordinance No. 6685
July 2, 2018
Page 3 of 3
Section 6. Effective date. This Ordinance shall take effect and be in force
five days from and after its passage, approval and publication as provided by law.
INTRODUCED: ___________________
PASSED: ________________________
APPROVED: _____________________
________________________________
NANCY BACKUS, MAYOR
ATTEST:
___________________________
Danielle E. Daskam, City Clerk
APPROVED AS TO FORM:
__________________________
Steven Gross, City Attorney
Published: _________________
Page 5 of 58
***draft***
Exhibit A
Ordinance 6685
Legal Description of Assessment Reimbursement Area
Lots 1, 2, and 3 of Auburn Short Plat Number SP-10-81 as recorded under Recording
Number 8106090801 in King County, Washington; along with
Parcels A, B, and C of Auburn Boundary Line Adjustment Number BLA17-0008 as
recorded under Recording Number 20171013900003 in King County, Washington.
Page 6 of 58
***draft***
Exhibit B
Ordinance 6685
Assessment Reimbursement Area
Page 7 of 58
***draft***
Exhibit C
Ordinance 6685
Johnston Sewer Extension Benefitting Properties Reimbursement Fees
Parcel
Number Address Current Owner
Parcel
Area (sf)1
Project Cost
Apportionment2
Reimbursement
Amount
000420-
0020
4036 I
Street NE
Surinder
Khangura 33,742 $13,052.01 $13,052.01
000420-
0010
Labrador
Ventures LLC 29,858 $11,549.61 $11,549.61
000420-
0027
Labrador
Ventures LLC 26,395 $ 10,210.06 $ 10,210.06
000420-
0028
Labrador
Ventures LLC 26,214 $ 10,140.05 $ 10,140.05
000420-
0011
4040 I
Street NE
Bernard and
Sandra Johnston 46,629 $18,063.93 $ 03
000420-
0021
4046 I
Street NE
Patrick Kihuria
and Anne Kiarie 34,567 $13,371.14 $ 04
Total $44,951.73
Notes:
(1) Parcel area at the time of facility completion
(2) Based on total project cost of $76,359.80 divided by the total area of the six parcels
(3) Developer contribution made at time of construction
(4) Reimbursement was made directly to Developer during construction.
Page 8 of 58
***draft***
Exhibit D
Ordinance 6685
Payback Agreement 2018-01
(16 pages)
Page 9 of 58
***draft***
Page 10 of 58
PAYBACK AGREEMENT
DEVELOPER’S EXTENSION
PAGE 1 of 8
Return Address:
City of Auburn
City Clerk
25 West Main
Auburn, WA 98001
Above this line reserved for recording information.
PAYBACK AGREEMENT 2018-01
DEVELOPER'S EXTENSION
Reference # (if applicable):N/A (unless previous recording #)Additional on page: ____
Grantor :City of Auburn
Grantee :1) Jeff Johnston 2)
Legal Description / STR:(Sec 31, Twp 22N, Rge 5E)Additional on page: ____
Assessor’s Tax Parcel ID#:(parcel #)
This Agreement made and entered into this __________ day of ______________,
2018, by and between the City of Auburn, a municipal corporation of King County,
Washington, hereinafter called the CITY and Jeff and Gwen Johnston, whose address is
4040 I Street NE, Auburn, WA 98002, hereinafter referred to as DEVELOPER.
WHEREAS, pursuant to Chapter 35.91 RCW et seq., the CITY has by Ordinance
No. 6685 adopted by the City Council of the CITY on the ______ day of
_________________, 2018, approved the execution of this Payback Agreement with the
DEVELOPER above and referring to facilities described herein; and
Page 11 of 58
PAYBACK AGREEMENT
DEVELOPER’S EXTENSION
PAGE 2 of 8
WHEREAS, the above-described DEVELOPER has offered and the CITY has
agreed to accept the sanitary sewer facilities described in Exhibit 1, Bill of Sale, attached
hereto, as part of the utility systems of the CITY;
NOW THEREFORE, IN CONSIDERATION OF THE CONDITIONS AND
COVENANTS HEREIN, THE PARTIES AGREE AS FOLLOWS:
I. DEVELOPER
At the time of construction, the above-described DEVELOPER represented
Bernard and Sandra Johnston, the record OWNERS of real property legally
described as shown on Exhibit 2 submitted by the DEVELOPER and attached
hereto. The real property described is also identified as:
Parcel number 0004200011, City of Auburn, (King/Pierce) County, Washington
“DEVELOPER” shall include successors, heirs, and assigns. The term shall
include a bankruptcy estate and a receivership as long as the City receives notice of
the bankruptcy or receivership as the law requires for notice to creditors, and the
DEVELOPER provides the notice required by section X of this agreement.
II. FACILITIES
The facilities which have been constructed by the DEVELOPER herein are as
shown in the attached Exhibit 3, incorporated herein by this reference, and
processed as a Developer Public Facility Extension, herein referenced as FAC15-
0010, the originals on file at the office of the City Engineer. The facilities have
been constructed in accordance with the ordinances and requirements of the CITY
governing the construction specifications for facilities of such type, and have been
approved by the City Engineer.
III. AREA OF FACILITY SERVICE BENEFIT
The properties benefited by the facilities constructed by the DEVELOPER are
shown on Exhibits 4 and 5, which are by this reference incorporated herein as if
fully set forth herein. Any owner of real estate legally described within the benefit
boundary as shown on the attached Exhibits 4 and 5, shall pay, as a condition for
connecting to the facilities, the amount as identified in Section V. All property
within the benefit boundary shall be subject to the connection fee as provided in
this agreement as a condition of issuance of the connection permit by the CITY.
Page 12 of 58
PAYBACK AGREEMENT
DEVELOPER’S EXTENSION
PAGE 3 of 8
IV. TERMS
For a period of 20 years from the date that the City formally accepts the developer’s
utility extension, any owner (latecomer) of real estate legally described in Section
III, and which owner has not fully contributed their pro rata share to the original
cost of the above-described facility, shall pay to the CITY the amounts specified in
Section V of this agreement. The charge herein represents the fair pro rata share of
the cost of construction of said facilities payable by properties benefited.
Payment of the latecomers pro rata share will be required by the CITY at the time
the CITY issues a side sewer permit, as described in Auburn City Code (ACC)
13.20.190 and 13.20.200, to connect and use the system. Facility extension
agreements are not considered connection permits and no payback payments will
be required as a condition of the construction associated with such agreements.
Additionally, no payback payments will be required as a condition of the
construction of individual side sewer stubs not connected for service.
The CITY shall reimburse the DEVELOPER within sixty (60) days of the date the
City receives payment from a person requesting connection to the facilities. Upon
the expiration of the 20-year term, any moneys collected by the CITY will not be
reimbursed to the DEVELOPER.
The CITY’s obligation to reimburse the DEVELOPER under this section shall not
apply to any real property purchased from DEVELOPER after construction of the
facilities.
V. AMOUNT OF REIMBURSEMENT
Sanitary sewer collection facilities: The DEVELOPER, his successors, heirs and
assigns, agrees that the amounts which the DEVELOPER is reimbursed from the
property owners as specified in Section III of this Agreement, represents a fair pro
rata share reimbursement for the DEVELOPER'S construction of the facilities
described in Section II of this Agreement.
The amount of reimbursement per square foot of the benefitted property at the time
of the acceptance of the facilities, as listed in Exhibit 6, shall be $0.387.
The total amount of reimbursement to the DEVELOPER for sanitary sewer
facilities from all applicable charges shall not exceed $44,951.73.
In the event that a benefitting property or properties is/are subdivided prior to
connecting to the facilities, the City may reallocate the reimbursement amount(s)
in a manner consistent with the methodology described above. The City will notify
both the DEVELOPER and the property owner of any revisions to the
reimbursement amounts.
Page 13 of 58
PAYBACK AGREEMENT
DEVELOPER’S EXTENSION
PAGE 4 of 8
VI. NOTICE AND HEARING
Prior to passing the Ordinance authorizing this agreement, the CITY, shall conduct
a public hearing in accordance with ACC 3.25.080, including meeting the
notification requirements of that section.
VII. EFFECT OF AGREEMENT
The provisions of this Agreement shall not be effective as to any owner of real
estate not a party hereto unless this Agreement has been recorded in the King
County Recorder’s Office prior to the time such owner receives a permit to connect
to and use said facilities.
If for any reason, the CITY fails to secure a latecomer payment for Owner's fair pro
rata share of the cost of the facilities, before connection to the extension, the CITY
is not liable for payment to the DEVELOPER.
Following approval of the Ordinance authorizing this agreement, the City will
record the document at the appropriate County’s Office. The DEVELOPER shall
be responsible for recording fees and for correcting any portion of the document
determined to not be recordable.
This agreement is subject to the provisions of Auburn City Code (“ACC”) Chapter
3.25 and shall be void if the DEVELOPER is in violation of any term or condition
of that Chapter as it exists on the date of execution of this agreement.
VIII. OWNERSHIP OF FACILITY
The DEVELOPER warrants that it has constructed the facilities described in
Section II of this Agreement to the CITY’s specifications and in conformance with
the CITY’s development regulations and comprehensive plan, and that the facilities
are fit for use as part of the City’s sanitary sewer system.
Once the CITY has accepted the facilities, they shall become a part of the municipal
system of the CITY. The DEVELOPER warrants that the facilities are free and
clear of all encumbrances and there are no persons or entities that have a right to a
lien against the facilities. Except for work covered under any warrantee described
in the FAC agreement, all maintenance and operation costs of said facility shall be
borne by the CITY. In consideration of the benefits derived from CITY utility
service, DEVELOPER agrees to execute and deliver to the CITY such documents
as may be necessary to transfer ownership of the facilities to the CITY upon
acceptance.
Nothing contained herein shall be construed to affect or impair the right of the
CITY to regulate the use of the facilities once accepted.
Page 14 of 58
PAYBACK AGREEMENT
DEVELOPER’S EXTENSION
PAGE 5 of 8
IX. UNAUTHORIZED CONNECTION
Whenever any connection is made into the facilities described in Exhibit A under
this Agreement which is not authorized by the CITY, the CITY shall have the
absolute authority to remove or cause to be removed such unauthorized connections
and all connecting lines or pipes located in the facility's right-of-way. The CITY
shall incur no liability for any damage to any person or property resulting from
removal of the unauthorized connection.
X. CURRENT ADDRESS & TELEPHONE NUMBER
The DEVELOPER shall keep a current record of his/her address and telephone
number on file with the City Engineer, and shall within 30 days of any change of
said address and/or telephone number, notify the City Engineer in writing. If the
DEVELOPER fails to do so, the parties agree that the CITY may authorize
connections resulting therefrom and not incur any liability for the non-collection
and/or non-reimbursement of charges to the DEVELOPER under this Agreement.
Every two years from the effective date of this agreement, shown on page one, the
DEVELOPER shall notify the City Engineer of its current name, address, and
telephone number. If the DEVELOPER fails to provide such information within
sixty (60) days of each anniversary, the CITY may collect and retain any connection
charges owed to the DEVELOPER under this contract.
The initial Contact Information and Address for Receipt of Reimbursement Funds
is as follows:
Jeff and Gwen Johnston
(Printed Name of Developer’s Representative)
Technique Construction, Inc.
(Company Name)
4040 I Street NE
(Mailing Address)
Auburn, WA 98002
(City, State, Zip code)
(206) 200-7764
(Telephone/FAX)
XI. ADMINISTRATION
Any inquiries regarding the administration of this agreement shall be directed to
the City Engineer.
Page 15 of 58
PAYBACK AGREEMENT
DEVELOPER’S EXTENSION
PAGE 6 of 8
XII. COVENANT RUNNING WITH THE LAND
This Agreement shall be binding on the DEVELOPER, its successors, heirs and
assigns and shall so be binding on the legal owners of all properties described
within the benefit boundary of the area as shown in the attached Exhibits 4, 5, and
6, their successors, heirs and assigns.
XIII HOLD HARMLESS
A. General Indemnification. The DEVELOPER will indemnify, defend, and hold
the CITY and the CITY'S officials and agents harmless from all claims and
costs of defense arising out of this agreement as a result of DEVELOPER
actions, omissions, misconduct, or breach of contract, including but not limited
to attorney's fees, expert witness fees, and the cost of the services of engineering
and other personnel who's time is reasonably devoted to the preparation and
attendance of depositions, hearings, arbitration proceedings, settlement
conferences and trials growing out of the demands and/or actions of property
owners incurred in the performance or completion of this Agreement. The
DEVELOPER specifically holds the CITY and its officials and agents harmless
and waives all claims related to the CITY’s establishment and enforcement of
the terms and conditions of this agreement, including the failure to locate a
beneficiary, assigns, successor, trustee, or survivor of DEVELOPER.
B. Indemnification Against Liens. The DEVELOPER further agrees to indemnify
and defend the CITY from any loss on account of any lien against the facilities
that arose on or prior to the date of CITY acceptance of the facilities. If the
CITY incurs any expense in defense against any such lien or claim, or in taking
any other action that is required of DEVELOPER under this Agreement, the
CITY shall have a lien in the full amount thereof against any funds then or
thereafter collected by the CITY pursuant to this Agreement.
XIV. CONSTITUTIONALITY OR INVALIDITY
If any section, subsection, clause or phrase of this Agreement is for any reason held
to be invalid or unconstitutional, such invalidity or unconstitutionality shall not
affect the validity or constitutionality of the remaining portions of this Agreement,
as it being hereby expressly declared that this Agreement and each section,
subsection, sentence, clause and phrase hereof would have been prepared,
proposed, adopted and approved and ratified irrespective of the fact that any one or
more section, subsection, sentence, clause or phrase be declared invalid or
unconstitutional.
Page 16 of 58
PAYBACK AGREEMENT
DEVELOPER’S EXTENSION
PAGE 7 of 8
CITY OF AUBURN
Nancy Backus, Mayor
ATTEST: APPROVED AS TO FORM:
Danielle Daskam, City Clerk Steven Gross, City Attorney
DEVELOPER:
Signature Signature
TITLE: TITLE:
Page 17 of 58
PAYBACK AGREEMENT
DEVELOPER’S EXTENSION
PAGE 8 of 8
STATE OF WASHINGTON )
)ss.
COUNTY OF KING )
I certify that I know or have satisfactory evidence that Nancy Backus and Danielle E.
Daskam were the persons who appeared before me, and said persons acknowledged that
they signed this instrument, on oath stated that they were authorized to execute the
instrument and acknowledged it as the MAYOR and CITY CLERK of the CITY OF
AUBURN to be the free and voluntary act of such parties for the uses and purposes
mentioned in this instrument.
Residing at
Dated _______________________
Notary Public in and for the State of Washington
My appointment expires
STATE OF WASHINGTON )
) ss
COUNTY OF KING )
I certify that I know or have satisfactory evidence that
and is/are the person(s) who appeared before me, and
said individual(s) acknowledged that he/she/they signed this instrument and acknowledged
it to be his/her/their free and voluntary act for the uses and purposes mentioned in this
instrument.
Dated
_______________________
Notary Public in and for the State of Washington
Residing at
My appointment expires
Dated
Notary Public in and for the State of Washington
My appointment expires
Page 18 of 58
Exhibit 1
Payback Agreement 2018-01
Page 19 of 58
Page 20 of 58
Page 21 of 58
Exhibit 2
Payback Agreement 2018-01
Legal Description of Developer’s Represented Property
Lot 2 of Auburn Short Plat Number SP-10-81 as recorded under Recording Number
8106090801 in King County, Washington.
Page 22 of 58
Exhibit 3
Payback Agreement 2018-01
Facilities Constructed
Page 23 of 58
Exhibit 4
Payback Agreement 2018-01
Legal Description of Assessment Reimbursement Area and Benefitting
Properties
Assessment Reimbursement Area
Lots 1, 2, and 3 of Auburn Short Plat Number SP-10-81 as recorded under Recording
Number 8106090801 in King County, Washington; along with
Parcels A, B, and C of Auburn Boundary Line Adjustment Number BLA17-0008 as
recorded under Recording Number 20171013900003 in King County, Washington.
Benefitting Properties
Tax Parcel # 000420-0020
Address: 4036 I Street NE
Legal Description:
Lot 1 of Auburn Short Plat Number SP-10-81 as recorded under Recording Number
8106090801 in King County, Washington.
Tax Parcel # 000420-0010
Address: N/A
Legal Description:
Parcel A of Auburn Boundary Line Adjustment Number BLA17-0008 as recorded
under Recording Number 20171013900003 in King County, Washington.
Tax Parcel # 000420-0027
Address: N/A
Legal Description:
Parcel B of Auburn Boundary Line Adjustment Number BLA17-0008 as recorded
under Recording Number 20171013900003 in King County, Washington.
Tax Parcel # 000420-0028
Address: N/A
Legal Description:
Parcel C of Auburn Boundary Line Adjustment Number BLA17-0008 as recorded
under Recording Number 20171013900003 in King County, Washington.
Tax Parcel # 000420-0011
Address: 4040 I Street NE
Legal Description:
Lot 2 of Auburn Short Plat Number SP-10-81 as recorded under Recording Number
8106090801 in King County, Washington.
Tax Parcel # 000420-0021
Address: 4046 I Street NE
Legal Description:
Lot 3 of Auburn Short Plat Number SP-10-81 as recorded under Recording
Number 8106090801 in King County, Washington.
Page 24 of 58
Exhibit 5
Payback Agreement 2018-01
Assessment Reimbursement Area
Page 25 of 58
Exhibit 6
Payback Agreement 2018-01
Benefitting Properties Reimbursement Fees
Parcel
Number Address Current Owner
Parcel
Area (sf)1
Project Cost
Apportionment2
Reimbursement
Amount
000420-
0020
4036 I
Street NE
Surinder
Khangura 33,742 $13,052.01 $13,052.01
000420-
0010
Labrador
Ventures LLC 29,858 $11,549.61 $11,549.61
000420-
0027
Labrador
Ventures LLC 26,395 $ 10,210.06 $ 10,210.06
000420-
0028
Labrador
Ventures LLC 26,214 $ 10,140.05 $ 10,140.05
000420-
0011
4040 I
Street NE
Bernard and
Sandra Johnston 46,629 $18,063.93 $ 03
000420-
0021
4046 I
Street NE
Patrick Kihuria
and Anne Kiarie 34,567 $13,371.14 $ 04
Total $44,951.73
Notes:
(1) Parcel area at the time of facility completion
(2) Based on total project cost of $76,359.80 divided by the total area of the six parcels
(3) Developer contribution made at time of construction
(4) Reimbursement was made directly to Developer during construction.
Page 26 of 58
Page 27 of 58
3,009.3
NAD_1983_StatePlane_Washington_North_FIPS_4601_Feet
Feet3,009.31,504.70
Johnston Sewer Payback Agreement 6/15/2018Printed Date:
Map Created by City of Auburn eGIS
Imagery Date: May 2015
Information shown is for general reference
purposes only and does not necessarily
represent exact geographic or cartographic
data as mapped. The City of Auburn makes
no warranty as to its accuracy.
Page 28 of 58
AUBURN
VALUES
S E R V I C E
ENVIRONMENT
E C O N O M Y
C H A R A C T E R
SUSTAINABILITY
W E L L N E S S
C E L E B R AT I O N
ENGINEERING SERVICES
REVIEW OF PENDING
ORDINANCE NO. 6685 –
JOHNSTON SEWER
PAYBACK AGREEMENT
ROBERT ELWELL
CITY COUNCIL STUDY SESSION
JULY 9, 2018
Community Development and Public Works Department
Engineering Services Administrative Services Environmental Services
Community Development Services Maintenance & Operations Services Page 29 of 58
Developer constructs public facilities (water, sewer, storm,
and/or streets)
Facilities benefit properties besides the development
Payback Agreement -between City and Developer
City collects pro -rata payments from benefited properties as
they connect within the 20 -year payback period
City forwards payments to Developer
WHAT IS A PAYBACK AGREEMENT?
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 30 of 58
PUBLIC FACILITY EXTENSION
BENEFITED PROPERTIES
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Existing Sewer Main
and Manholes
New Sewer
Main and
Manholes
Page 31 of 58
PAYBACK PROCESS
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Developer City
Submit payback application Provide preliminary notice to benefitting
properties
Complete construction Accept facilities for operation
Submit project costs Review costs and determine apportioned costs
Prepare agreement and public notice documents
Notify benefited properties
Hold public hearing
Council approve agreement by ordinance
Record agreement and incorporate into City
permitting and mapping systems
Collect payments and forward to Developer
Next Week
Next
Week
Page 32 of 58
JOHNSTON PAYBACK AGREEMENT
#2018 -01 (ORDINANCE 6685)
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Reimbursement for
each parcel based on
parcel area.
Assessment
Reimbursement
Area I Street NEN
Total Project Cost = $76,359.80
Cost per square foot = $0.387
Page 33 of 58
QUESTIONS?
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 34 of 58
AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6686 (Tate)
Date:
July 3, 2018
Department:
Planning and Development
Attachments:
Agenda Bill - Ordinance No. 6686
Exhibit A - Ordinance No. 6686
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
Background Summary:
Please see attached Agenda Bill
Rev iewed by Council Committees:
Other: Community Development
Councilmember:Staff:Jeff Tate
Meeting Date:July 9, 2018 Item Number:
Page 35 of 58
AGENDA BILL APPROVAL FORM
Agenda Subject: Ordinance No. 6686 – Renewal of the Construction
Sales Tax Exemption Provisions of ACC 3.60.036
Date: June 29, 2018
Department:
Community Development &
Public Works Dept.
Attachments:
Ordinance No. 6686
Budget Impact:
(none)
Administrative Recommendation:
City Council to schedule Ordinance 6686 for Council action on July 16, 2018.
Summary:
On September 19, 2011 the Auburn City Council adopted Ordinance 6376 which established a
Construction Sales Tax Exemption program. This ordinance allowed for a sales tax rebate for sales taxes
paid on construction materials, fixed equipment, machinery installation, and labor associated with the
construction activity. Only projects located within the DUC, C3, C4, M1, or M2 zones were eligible, and
only for new commercial buildings or redevelopment of existing vacant buildings 25,000 square feet or
larger or for the expansion of existing commercial buildings that create new or expanded floor area that
generates sales tax revenue. Additional eligibility provisions are established for projects in the DUC that
are less than 25,000 square feet and within the M1 and M2 zones where existing building are converted
from warehouse to manufacturing. Eligible projects qualified for an exemption from local sales and use
tax up to 20% of the taxes imposed and paid to the City of Auburn, but not to exceed $100,000. While
formally called a sales tax exemption, the method for implementing the program is to issue a rebate after
taxes have been paid. Ordinance 6376 also included a sunset provision which automatically caused the
program to expire on September 19, 2015.
On October 7, 2013 the Auburn City Council adopted Ordinance 6482 which amended the program to
expand project eligibility to include residential buildings in the DUC that include a minimum of 50 dwelling
units.
Since the Construction Sales Tax Exemption provisions were added to Auburn’s City Code, one
developer has taken advantage of the program. FNW development company constructed the Trek
apartment building. The City provided a rebate of 20% of its share of construction sales taxes paid by
Trek for a total of $24,333.00.
Because of the sunset provision contained in Ordinance 6376 the Construction Sales Tax Exemption
program has expired. The purpose of Ordinance 6686, attached as Exhibit A, is to re-establish the
program and to remove the sunset provision. Additionally, staff is suggesting removal of all references to
the EP zoning designation because this zone no longer exists within the adopted Comprehensive Plan or
the adopted zoning map.
Despite the fact that the program has only been used by one developer for one project, City staff believes
that the mere existence of the program delivers a strong message to the development community that
Auburn offers a friendly business climate for developers that would like to pursue certain mixed use and
commercial projects. Additionally, it is an important part of a larger package of incentives that developers
are able to pick and choose from when determining where to cite future projects.
Action:
Council Approval: Yes No Call for Public Hearing ___/___/____
Referred to _________________________________ Until ____/___/____
Tabled ______________________________________ Until ___/___/____
Reviewed by Departments & Divisions:
Building M&O
Cemetery Mayor
Finance Parks
Fire Planning
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Agenda Subject: Ordinance No. 6654 related to Construction Sales Tax
Exemption
Date: June 29, 2018
Page 2 of 2
Legal Police
Public Works Human Resources
Information Services Surveying
Staff: Tate
Meeting Date: July 9, 2018
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Ordinance No. 6686
7.9.2018
Page 1
ORDINANCE NO. 6 6 8 6
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF AUBURN, WASHINGTON, AMENDING
SECTIONS 3.60.036 OF THE AUBURN CITY
CODE RELATING TO CONSTRUCTION SALES
TAX EXEMPTION
WHEREAS, Auburn City Code Chapter 3.60 imposes a sales or use taxes
authorized under RCW 82.14.030 (2), on every taxable event (as defined in RCW
82.14.020) occurring within the City. The tax is imposed on and collected from those
persons from whom the state sales tax or use tax is collected pursuant to Chapters
82.08 and 82.12 RCW; and
WHEREAS, the City of Auburn adopted Ordinance No. 6376 on September 19,
2011, to promote economic development through the development of new businesses
or the expansion of existing businesses in certain zoned areas of the City that will
contribute to increased sales tax revenue generation within the City through new or
increased sales activities that create taxable event opportunities; and
WHEREAS, Ordinance 6376 included a provision that expires the Construction
Sales Tax Exemption program on September 19, 2015, 4 years from the date of the
adoption of the ordinance; and
WHEREAS, the City of Auburn adopted Ordinance No. 6482 on October 7, 2013
which further modified and clarified the Construction Sales Tax Exemption program
outlined in ACC 3.60.036 and extended the expiration date of the program until 2017;
and
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Ordinance No. 6686
7.9.2018
Page 2
WHEREAS, the City of Auburn wishes to continue to incentivize the construction
of new or expanded businesses in additional zoned areas of the City, and to encourage
the creation of manufacturing jobs by re-authorizing the sales tax exemption program
and making it a permanent program.;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
SECTION 1. AMENDMENT TO CITY CODE. Section 3.60.060 of the Auburn
City Code is amended to read as follows:
3.60.036 Construction sales tax exemption
A. 1. The following purchasers in the eligible target business class who
have paid the tax imposed by this chapter on construction materials, fixed
equipment, or machinery installation, or on sales of or charges made for labor
and services rendered in respect to such construction or installation of such
machinery or equipment, are eligible for an exemption as provided for in this
section: for property zoned downtown urban center (DUC), C-3 (heavy
commercial district), and C-4 (mixed-use commercial), purchases directly related
to the construction of new commercial buildings or redevelopment of existing
vacant buildings 25,000 square feet or greater or expansion of existing
commercial buildings that creates new or expanded building floor area that
generates sales tax revenue.
2. For property zoned downtown urban center (DUC), purchases directly
related to the construction of new commercial buildings less than 25,000 square
feet, or redevelopment of existing buildings less than 25,000 square feet, where
the cost of the improvement is at least 25 percent of the current assessed value
of the improvements on the property pursuant to the assessment records of King
or Pierce County, as applicable.
3. For property zoned M-1 (light industrial district), and M-2 (heavy
industrial district) and EP (environmental park district), purchases directly related
to the construction of new commercial buildings, redevelopment of existing
buildings that result in a change of occupancy from warehouse use to
manufacturing use, or redevelopment of existing buildings where the cost of the
improvement is at least 25 percent of the current assessed value of the
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Ordinance No. 6686
7.9.2018
Page 3
improvements on the property pursuant to the assessment records of King or
Pierce County, as applicable.
B. Beginning on the effective date of the ordinance codified in this section
through a date four years after the effective date, aA purchaser is eligible for an
exemption specified under this section from the local sales and use tax paid
under this chapter, as authorized under RCW 82.14.030(2), up to a maximum of
20 percent of taxes imposed and paid to the city of Auburn not to exceed
$100,000. The purchaser is eligible for an exemption under this section in the
form of a refund.
C. For purposes of this section, the following definitions apply:
1. “Change of occupancy” means a change of the purpose for which a
building is used or intended to be used. The term shall also include the building
or portion thereof in which such change of occupancy is made. Change of
occupancy is not intended to include change of tenants or proprietors.
2. “Commercial building” means a structure that has, as its primary
purpose, a commercial use as that term is defined in ACC 18.04.240.
3. “Expansion” means to add to the floor area of a building.
4. “Purchaser” means a person or entity that is the recipient of a good or
service.
D. Eligible Target Business Classes.
1. The construction sales tax exemption specified in subsection (A)(1) of
this section shall only apply to those businesses engaged in normal business
activities under the following classifications of businesses occurring within the
specified zoning designations:
a. General Merchandise, Warehouse Club, SuperCenter – Sales Tax
Classification Code 45291;
b. Building Materials and Garden Home Center – Sales Tax Classification
Code 44411;
c. Electronics and Appliances – Sales Tax Classification Code 44311;
d. Full Service Restaurants – Sales Tax Classification Code 722110;
e. New and Used Automobile and Light Utility Truck Dealers – Sales Tax
Classification Code 44110;
f. Bowling Centers – Sales Tax Classification Code 713950;
g. Motion Picture Theaters (excluding drive-in theaters) – Sales Tax
Classification Code 512131;
h. Hotels – Sales Tax Classification Code 72110; and
i. Residential buildings and dwellings within the DUC only – North
American Industry Classification System Code 531110.
2. The construction sales tax exemptions specified in subsections (A)(2)
and (3) of this section shall apply to all businesses located in the DUC, EP, M-1,
and M-2 zoning districts as set forth in those subsections.
E. Application for Refund.
1. A purchaser claiming an exemption and applying for a refund under this
section must pay the tax imposed by ACC 3.60.020. The purchaser may then
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Ordinance No. 6686
7.9.2018
Page 4
apply to the city for a refund in a form and manner prescribed by the city and
shall submit information that the city deems adequate to justify the exemption,
including but not limited to:
a. Identification of the vendor/contractor;
b. North American Industry Classification System (NAICS) code under
which the tax was reported;
c. Name and Unified Business Identifier (UBI) number of the
vendor/contractor on the Combined Excise Tax Return filed with the state of
Washington; and
d. Detailed information supporting the amounts reported under the State
Use and Sales Tax section of the above report for Location Codes 1702 and
2724.
2. A purchaser may not apply for a refund under this section more
frequently than once per quarter. The purchaser must specify the amount of
exempted tax claimed and the qualifying purchases for which the exemption is
claimed. The purchaser must retain all records provided to the city in making its
claim.
3. The city shall determine eligibility under this section based on the
information provided by the purchaser, which is subject to audit verification by the
city. If the city verifies eligibility, it shall remit eligible taxes paid to the purchaser.
F. Appeals. Any applicant aggrieved by an action of the city concerning
eligibility or computation of remittance under this section may file a written appeal
to the city’s hearing examiner in accordance with Chapter 2.46 ACC within 14
calendar days of receipt of the city’s decision. The hearing examiner is
specifically authorized to hear and decide such appeals and the decision of the
hearing examiner shall be the final action of the city.
SECTION 2. IMPLEMENTATION. The Mayor is authorized to implement such
administrative procedures as may be necessary to carry out the directions of this
legislation.
SECTION 3. SEVERABILITY. The provisions of this ordinance are declared to
be separate and severable. The invalidity of any clause, sentence, paragraph,
subdivision, section or portion of this ordinance, or the invalidity of the application
thereof to any person or circumstance shall not affect the validity of the remainder of
this ordinance, or the validity of its application to other persons or circumstances.
SECTION 4. EFFECTIVE DATE. This Ordinance shall take effect and be in force
five (5) days from and after its passage, approval and publication as provided by law.
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Ordinance No. 6686
7.9.2018
Page 5
INTRODUCED: ________________________
PASSED: ____________________________
APPROVED: __________________________
CITY OF AUBURN
_____________________________________
NANCY BACKUS
MAYOR
ATTEST:
________________________________
Danielle E. Daskam
City Clerk
APPROVED AS TO FORM:
________________________________
Steven L. Gross
City Attorney
Published: _______________________
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AGENDA BILL APPROVAL FORM
Agenda Subject:
Surrender Firearms Protocols (Pierson) (20 Minutes)
Date:
July 2, 2018
Department:
Police
Attachments:
Surrender Firearms Protocol
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
Background Summary:
Rev iewed by Council Committees:
Councilmember:Staff:Pierson
Meeting Date:July 9, 2018 Item Number:
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POLICE DEPARTMENT
MEMORANDUM
DATE: July 2, 2018
TO: Mayor Backus
FROM: Chief of Police W. Pierson
SUBJECT: Firearms and Extreme Risk Protection Orders
The Auburn Police Department has the primary responsibility for processing Concealed Pistol
Licenses (CPL) and firearm purchases. State law includes some restrictions prohibiting some
people from possessing firearms. The following individuals are prohibited from possessing a
firearm:
• Anyone convicted* of a felony;
• Anyone convicted* of the following DV misdemeanors if committed after July 1,
1993: Assault 4, Coercion, Stalking, Reckless Endangerment, Criminal Trespass,
Violation of a Protection Order or No Contact Order.
• During the period of time the person is subjected to a certain restraining/protection
orders.
• Those who have been involuntarily committed.
• Those under the age of 18.
*A conviction is defined as such time as when a guilty plea has been accepted or a verdict of guilt
has been filed, regardless of any future proceedings. Conviction includes dismissal entered after
a period of probation or deferral of sentence.
Occasionally, the APD will receive an application from an individual whose criminal history return
is unclear as to whether the person was “convicted,” as defined by the statute, in which case the
APD will send the application to the City Attorney’s office for further research. This will generally
entail the City Attorney’s Office requesting additional documentation/information from other courts
and police agencies in order to determine whether the application should be granted or denied.
There are also occasions where an applicant will have out-of-state criminal history that may or
may not disqualify them from possessing a firearm, in which case the application will be sent to
our office for further review. Basically, anytime the applicant’s criminal history return is unclear, or
raises concerns about an applicant’s right to possess a firearm, it will be sent to the City Attorney’s
Office for further research and guidance as to whether the application should be approved.
The Court and prosecutors also get involved in firearms issues. At arraignment, prosecutors
submit and the judge generally signs an Order to Surrender Weapons along with a proposed No
Contact Order. The orders are based on RCW 9.41.800, which allows for firearms forfeiture orders
when the court enters a Domestic violence (DV) No Contact Order (NCO), or in a civil stalking,
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Addressee Name
Page 2 of 2
Date of Memo Here
anti-harassment, or protection order. In our DV cases, when a NCO is issued, the Defendants
are ordered by the judge to surrender their weapons to the Auburn Police Department and provide
proof to the court within 5 days. If the Defendant does not either surrender weapons or submit a
Declaration of Non-surrender stating that they have no weapons within 5 days, the court will set
a review hearing and/or indicate that this must be addressed at their next scheduled hearing,
depending upon how soon the next hearing is scheduled. If the prosecutors are able to show
(usually based on the word of a victim) that the Defendant does have weapons that he hasn’t
surrendered, the court can set bail and take the defendant into custody based on the violation of
release conditions.
The court can also order firearm forfeiture in cases in which a gun was used or displayed (i.e., in
a display of dangerous weapon case), in a DUI when a firearm was found in the defendant’s
possession during arrest, and if the firearm was found in possession of a person who is
determined to be incompetent. See RCW 9.41.098. These are generally cases in which the
firearm was confiscated during arrest, rather than surrendered later because of an order to
surrender weapons entered by the court.
At the time of conviction of certain misdemeanors, the court will also inform the defendant that
based upon the conviction, they have lost their right to possess a firearm. RCW 9.41.040 provides
these crimes: Assault in the fourth degree, coercion, stalking, reckless endangerment, criminal
trespass in the first degree, or violation of the provisions of a protection order or no-contact order
restraining the person or excluding the person from a residence. The Defendant can petition for
their firearm rights to be restored by the Superior Court after 3 years if they have no new criminal
law violations and they have completed the conditions of the sentence on the case.
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AGENDA BILL APPROVAL FORM
Agenda Subject:
Matrix
Date:
July 2, 2018
Department:
Adminis tration
Attachments:
Matrix
Special Focus Areas
Budget Impact:
Current Budget: $0
Proposed Revis ion: $0
Revis ed Budget: $0
Adminis trative Rec ommendation:
Background Summary:
Reviewed by Counc il Committees :
Counc ilmember:Staff:
Meeting Date:July 9, 2018 Item Number:
Page 56 of 58
Updated 07-02-2018
NO.TOPIC Chair STAFF LEAD(S)STUDY SESSION REVIEW
DATE(S)
COUNCIL DISCUSSION
SUMMARY ACTION DATE
1
Capital Projects Update and
Featured Capital Project
Discussion
Chair DaCorsi
Vice Chair Deputy Mayor
Baggett
Asst. Director Gaub 8/27/2018
2 Livable Cities Update
Chair DaCorsi
Vice Chair Deputy Mayor
Baggett
Asst. Director Tate 8/27/2018
3 Community Court Chair Brown
Vice Chair Peloza Director Martinson TBD
4 DV Model Firearms Program Chair Brown
Vice Chair Peloza Chief Pierson 7/9/2018
5 Park Rules Chair Brown
Vice Chair Peloza Director Faber TBD
6 Airport Advisory Board Update Chair Brown
Vice Chair Peloza Asst Director Gaub 8/13/2018
7 Homelessness Update Chair Trout-Manuel
Vice Chair Wales Director Hinman 7/23/2018
8 Multicare Behavioral Health
Facility Update
Chair Trout-Manuel
Vice Chair Wales Director Hinman
Presentation on 5/29/18
9 One Table Presentation Chair Trout-Manuel
Vice Chair Wales Dana Hinman 7/23/2018 Presentation on 5/29/18
10
Cost of Service Study -
Planning and Development
Fees
Chair Holman
Vice Chair Brown Finance Director Coleman
10/8/2018
11 Annexations (islands and
peninsulas)
Chair Holman
Vice Chair Brown City Attorney Gross TBD
COUNCIL MATRIX
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Revised 01-08-2018
HEALTH & HUMAN SERVICES FINANCE & ECONOMIC
DEVELOPMENT
PUBLIC WORKS & COMMUNITY
DEVELOPMENT MUNICIPAL SERVICES
HUMAN SERVICES FUNDING CITY BUDGET & AMENDMENTS UTILITIES POLICE
PUBLIC WELLNESS RISK MANAGEMENT ZONING, CODES & PERMITS SCORE JAIL
DOMESTIC VIOLENCE SERVICES EQUIPMENT RENTAL INNOVATION & TECHNOLOGY DISTRICT COURT
HOMELESSNESS SERVICES FACILITIES TRANSPORTATION PARKS & RECREATION
AFFORDABLE HOUSING CITY REAL PROPERTY STREETS ANIMAL CONTROL
COMMUNITY SERVICES LEGAL ENGINEERING SOLID WASTE
HUMAN RESOURCES DEVELOPMENT INCENTIVES CAPITAL PROJECTS EMERGENCY PLANNING
MEDICAL COMMUNITY RELATIONS BUSINESS DEVELOPMENT SUSTAINABILITY AIRPORT
ECONOMIC DEVELOPMENT STRATEGIES ENVIRONMENTAL PROTECTION AIRPORT BUSINESSES
CULTURAL ARTS & PUBLIC ARTS SISTER CITIES
PLANNING MULTIMEDIA
Councilmember Trout-Manuel, Chair Councilmember Holman, Chair Councilmember DaCorsi, Chair Councilmember Brown, Chair
Councilmember Wales, Vice Chair Councilmember Brown, Vice Chair Deputy Mayor Baggett, Vice Chair Councilmember Peloza, Vice Chair
2018 MEETING DATES 2018 MEETING DATES 2018 MEETING DATES 2018 MEETING DATES
January 22, 2018 February 12, 2018 February 26, 2018 January 8, 2018
March 26, 2018 April 9, 2018 April 23, 2018 March 12, 2018
May 29, 2018 June 11, 2018 June 25, 2018 May 14, 2018
July 23, 2018 August 13, 2018 August 27, 2018 July 9, 2018
September 24, 2018 October 8, 2018 October 22, 2018 September 10, 2018
November 26, 2018 December 10, 2018 December 24, 2018 November 13, 2018
SPECIAL FOCUS AREAS
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