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Home My WebLink AboutFINAL 05-08-2023 City Council Study SessionCity Council Study Session Finance, Technology and Economic Dev elopment Special Focus Area May 8, 2023 - 5:30 P M City Hall Council Chambers A GE NDA Watch the meeting L I V E ! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I .C A L L TO O R D E R I I .P UB L I C PA RT I C I PAT I O N A .P ublic P articipation The A uburn City Council Study Session Meeting scheduled for Monday, May 8, 2023 at 5:30 p.m. will be held in person and virtually. Virtual Participation L ink: To view the meeting virtually please click the below link, or call into the meeting at the phone number listed below. The link to the Virtual Meeting is: https://www.youtube.com/user/watchauburn/live/?nomobile=1 To listen to the meeting by phone or Zoom, please call the below number or click the link: Telephone: 253 215 8782 Toll F ree: 877 853 5257 Zoom: https://us06web.zoom.us/j/87880204531 B .Roll Call I I I .A G E ND A MO D I F I C AT I O NS I V.A NNO UNC E ME NT S , R E P O RT S , A ND P R E S E NTAT I O NS A .Waste Management 2022 Annual Report P resentation (Thomas) (20 Minutes) B .K ing County Solid Waste R E+ Presentation (T homas) (20 Minutes) V.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 .Changing a L and Use L aw (Tate) (20 Minutes) A n overview of what it takes to change a L and Use L aw Page 1 of 108 V I .F I NA NC E, T E C HNO L O G Y A ND E C O NO MI C D E V E L O P ME NT D I S C US S I O N I T E MS A .E conomic Development Update - 1st Quarter 2023 (Tate) (15 Minutes) A n update on E conomic Development Division activity B .Ordinance No. 6906 (Council) A n Ordinance amending S ection 2.08.020 of the Auburn City Code related to the purpose of the City’s I ndependent Salary Commission C.Ordinance No. 6907 Option A (Council) A n Ordinance relating to the S alary and E mployment B enefits of the City Mayor P osition, amending A uburn City Code Sections 2.03.020, 2.63.120 and 2.63.160, and providing (in a non-codified section) E mployment B enefit P ayment Terms for the current City Mayor D.Ordinance No. 6907 Option B (Council) A n Ordinance relating to the S alary and E mployment B enefits of the City Mayor P osition, amending A uburn City Code Sections 2.03.020, 2.63.120 and 2.63.160, and providing (in a non-codified section) E mployment B enefit P ayment Terms for the current City Mayor V I I .A D J O UR NME NT Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review at the City Clerk's Office. Page 2 of 108 AGENDA BILL APPROVAL FORM Agenda Subject: Waste Management 2022 Annual Report Presentation (Thomas) (20 Minutes) Date: May 2, 2023 Department: Finance Attachments: WM 2022 Update Pres entation Budget Impact: Administrativ e Recommendation: For information only. Background for Motion: Background Summary: The City of Auburn and Waste Management (WM) entered into a new contract on October 1, 2021. This presentation is a summary of the services WM provided in 2022 – the first full year of the new contract in which WM is the solid waste provider for the entire City, serves as the City’s billing agent, and coordinates the customer service. Rev iewed by Council Committees: Councilmember:Baldwin Staff:Thomas Meeting Date:May 8, 2023 Item Number: Page 3 of 108 Page 4 of 108 Page 5 of 108 Page 6 of 108 Page 7 of 108 o o o 43% (33) received a good score. 51% (39) received an average score. 6% (5) received a below average score o Recyclable plastic and cardboard were the two most common recyclables in business garbage containers. o Loose plastic bags and bagged materials were the contaminants most found in business recycle containers. 2022 WM Recycle Corps interns. Page 8 of 108 Page 9 of 108 The diversion rate is the percentage of total collected material that is not taken to a landfill, thus diverted for recycling, composting,reuse,and repurpose.Diverted material is typically delivered to a recycling or composting facility for processing. Page 10 of 108 o o o o WM employees sorting materials at the CRC. Page 11 of 108 9 Page 12 of 108 Page 13 of 108 AGENDA BILL APPROVAL FORM Agenda Subject: King County Solid Waste RE+ Presentation (Thomas) (20 Minutes) Date: May 2, 2023 Department: Finance Attachments: Re+ Pledge Re+ City Pres entation Budget Impact: Administrativ e Recommendation: For information only. Background for Motion: Background Summary: The King County Solid Waste Division recently launched RE+, their initiative to reinvent the region's waste management to keep valuable materials in the economy, create green jobs, and cut greenhouse gas emissions. King County's ultimate goal is to have every City in King County to commit to the RE+ pledge. Rev iewed by Council Committees: Councilmember:Baldwin Staff:Thomas Meeting Date:May 8, 2023 Item Number: Page 14 of 108 Climate Change is an urgent challenge, with far-reaching current and future impacts to our environment, public health, and economy. King County’s Re+ program aims to divert recoverable material from the landﬁ ll which will reduce greenhouse gas emissions and contribute to a circular economy. Based on the 2019 Waste Characterization study up to 70% of what ends up in our landﬁ ll could be composted, reused and recycled. Reclaiming these items and repurposing them through recycling or composting will help us reach King County’s zero waste goals. Implementing Re+ will ensure that we are keeping true to our commitments to reduce climate impacts, conserve resources, and create a healthier environment for our communities by keeping valuable materials out of the landﬁ ll and in use as long as possible. Re+ is a roadmap for making that change. Our approach aims to reinvent the current waste management system to be more resilient, equitable, and cost-effective through strategies necessary to meet our 2030 goal of zero food waste and zero waste of reusable resources. Key actions include identifying new ways of processing organics and recycling, developing recycling markets for organics, paper and plastic, and a community panel to engage historically underrepresented and adversely impacted community members to help guide future outcomes. These new markets will create local jobs in the private sector, help build the green economy and ensure a just and equitable impact on the members of our community. Re+ builds on the important work that many of our partners, including cities, the Port of Seattle, businesses, non-proﬁ ts, community members, and the County are already doing to reduce contributions to climate change. WHEREAS, climate change is an urgent challenge, with far-reaching current and future impacts to our environment, public health, and economy; and WHEREAS, greenhouse gas (GHG) emissions generated globally from the production, transport, use, and disposal of goods, foods, and services consumed in King County are a major part of our communities’ climate footprint and are more than locally generated GHG emissions; and WHEREAS, King County and K4C partners are measuring, reporting, and developing new strategies to reduce consumption-related GHG emissions; and WHEREAS, supporting the Re+ effort will help focus our joint effort and responsibility to make progress toward reducing local GHG emissions by increasing waste prevention and recycling, laying the foundation for developing a circular economy; and Re+ Pledge Page 15 of 108 WHEREAS, we recognize that the success of Re+ will require collaboration between King County, local jurisdictions, tribes, businesses, community-based organizations, and others; and WHEREAS, the Re+ Program is consistent with, consolidates, and accelerates progress towards achieving the approved goals and strategies of the 2020 Strategic Climate Action Plan, the 2019 Comprehensive Solid Waste Management Plan, and the Joint Climate Action Commitment of the King County Cities Climate Collaborative (K4C) in relation to the County’s zero-waste goals; and WHEREAS, we will work with the County to identify ways to enhance our efforts to achieve the vision of Re+ with implementation support from the County including competitive grants, model language for countywide program and policy implementation, and technical support; and WHEREAS, as a core component of this important work we must engage in ways that are fair, equitable and inclusive for those who are historically under-represented and have been disproportionately impacted by the status quo in our communities. Now, therefore, we pledge our support for the shared vision that Re+ represents and look forward to collaborating to see this vision become reality. Signed this ____________ day of _____________ , _______ , by Alternate Formats Available 206-477-4466 • TTY Relay 711 Name, Title on behalf of Jurisdiction Page 16 of 108 King County Solid Waste Division City of Auburn –May 8, 2023 Page 17 of 108 Page 18 of 108 Re+ is a call to action Strategic Climate Action Plan 1 .3 .3 -The Department of Natural Resources and Parks (…) shall achieve at minimum net carbon neutrality on an annual, ongoing basis 5 .1 .1 -Deliver zero waste of resources plan (ZWORP) 5 .1 .3 -Zero food waste in landfill in 2030 KC County Code 10.14.020 County goals. It is King County's goal to achieve zero waste of resources by 2030 through maximum feasible and cost- effective prevention, reuse and reduction of solid wastes going into its landfills and other processing facilities. KC Equity and Social Justice Strategic Plan Vision: A King County where all people have equitable opportunities to thrive. “(O)ur investments (...) should assess and address disproportionate environmental burdens and promote the equitable access to environmental benefits and resulting economic opportunities.” Comprehensive Solid Waste Management Plan Several policies and actions in the Comp Plan support Re+ actions K4C Commitment Develop a regional strategy through the adopted 2019 Comprehensive Solid Waste Management Plan to reach zero waste of resources by 2030 Page 19 of 108 Re+ Launched •Plan launched in November •Media event in February •Re+ community panel appointed •$2.3 million Circular Economy grants •15 seed ‘renew’ grants finalized •13 City Re+ pledges signed •NextCycle accelerator launched •Mixed Waste Processing pilot launched •WA Organics Legislation passed 2022 •Food scraps policy survey launched •City Grant Program is Live Page 20 of 108 Where is King County leading? •Curbside collection of non- organic recyclables •C&D Recycling •Yard waste collection Where is King County lagging? •Weekly organics & recycling collection •Extended Producer Responsibility •Banning food waste heading to landfill 50%54% 0% 10% 20% 30% 40% 50% 60% 70% 80% 2010 2011 2012 2013 2014 2015 2016 2017 RECYCLING RATES HAVE REMAINED RELATIVELY FLAT FOR NEARLY A DECADE Page 21 of 108 Re+ Fast Start Actions Plastic & Paper (26%) •WRAP Act / Extended Producer Responsibility Legislation Organics (28%) •Single Family Collection •Non-Residential Food Waste Recycling •Organics Legislation Community •Community Panel •City/County Collaboration •Re+ City Grants •Mixed Waste Processing •Circular Economy Grants •NextCycle WA Page 22 of 108 Surveys and More Countywide Re+ Polling •Completed during the Summer of 2022 Organics Survey •Launched a survey countywide on February 22 (open through April 30) Comprehensive Plan •Initiated internal work Washington State Legislature •HB 1131, WRAP Act Failed, Battery EPR Bill Passed Re+ Grants •Circular Economy grant award winners announced Monday •City grants launched 4/25, open until June. *Pledge required for eligibility*Page 23 of 108 Page 24 of 108 Page 25 of 108 Re+ City Presentations Completed: •Carnation+ •Covington •Clyde Hill + •Duvall •Issaquah •K4C •Kent •Medina •Mercer Island •Newcastle+ •Renton •Sammamish •Shoreline + •Snoqualmie + •Woodinville + •Lake Forest Park Scheduled: •Redmond •Auburn Cities Not Yet Scheduled: •Algona •Beaux Arts Village •Bellevue •Black Diamond •Burien •Des Moines •Federal Way •North Bend •SeaTac •Skykomish •Tukwila •Maple Valley •Yarrow Point •Normandy Park •Kirkland •Maple Valley •Normandy Park •Bothell •Kenmore •Pacific •Enumclaw 0 5 10 15 20 25 30 35 40 Goal: 35 City Presentations by 6/30/23 Total to Date - 5/1/23 (Including Scheduled) City Presentations -June 2023 Page 26 of 108 What Can Cities Do to Help? Sign the Re+ Pledge! Shoreline Woodinville Clyde Hill Snoqualmie Carnation Newcastle Kirkland Kenmore Bothell Lake Forest Park Issaquah Covington Maple Valley Page 27 of 108 Why Sign the Pledge? •City Re+ Grant Eligibility (Grant Opens April 25th) •It aligns with King County K4C, C-SWMP, SCAP and more •Shows an alignment of goals •Will provide new opportunities for city/county coordination •Demonstrates your commitment of zero-waste to the community •Brings focus on to key elements contributing to climate change •…and more! Page 28 of 108 •For 20+ years SWD has provided a ~$2 million Waste Reduction and Recycling (WRR) grant program for King County cities •WRR funds are allocated based on population and number of employees •WRR projects must be tied to the Comp. Solid Waste Management Plan •New Re+ City Grant program is part of our strategy to fund more innovative waste reduction and recycling efforts Re+ City Grant Background Page 29 of 108 Zero waste circular economy Climate action Equitable futures Commitment to equity & social justice Page 30 of 108 •Competitive funding for King County cities that have signed the Re+ pledge •Cities are encouraged to work together on joint projects •$300,000 available over the 2023-24 biennium •Awards range from $20,000-$50,000 ($100,000 for joint proposals) •Projects should be completed by December 31, 2024 Grant overview Page 31 of 108 •Re+ priority materials •Paper •Plastics •Organics (food waste, yard waste, and wood) •Focus areas •Prevention and reuse •Recycling •Equity and social justice Grant focus Page 32 of 108 Grant Timeline •Request for applications: April 25-June 1 at 3 p.m. •Final day to submit questions: May 29 at 3 p.m. •Evaluation and award recommendations: June •Award notifications: early-July (tentative) •Contract negotiation: mid-July onward Note: Projects may begin after award notifications. Reimbursements cannot be processed until the contract is signed. Page 33 of 108 184/28/2023 Rate Restructure Reducing Rate Volatility Page 34 of 108 194/28/2023 King County’s (KC) MSW system serves 37 cities and unincorporated areas Mission: We bring the best people together to deliver value to our customers and stakeholders and continuously improve waste prevention, resource recovery, and waste disposal. Vision: Achieve zero waste of resources and enhance the environment through collaboration and innovation. Page 35 of 108 204/28/2023 KC’s Re+ program reduces revenue, so a new rate structure is needed •Under previous rate structure, as we reduce waste and divert more resources via recycling,revenue would be reduced making it difficult to fund core services. –90%of SWD revenues come from waste disposal –Re+ goal is to reduce disposal tons by 70% –The majority of SWD costs are largely fixed •A fixed revenue stream will reduce volatility in rate increases caused by lower tonnage associated with increased recycling or economic downturns.Page 36 of 108 214/28/2023 Public Utility Rates Often Address Competing Priorities •Financial Sustainability:Utilities must build, maintain, and replace infrastructure –Replacing aging assets consistently #1 issue reported by public utilities •Encourage Conservation through rate design •Equitable Rates based on the cost to provide service •Transparency and Simplicity to ensure rates are easy to understand and administer Page 37 of 108 224/28/2023 As Tonnage Drops, Rates Rise If disposal tons dropped from 883K1 to 500K tons by 2026, the tipping fee would need to nearly double to generate the same amount of revenue. $- $50 $100 $150 $200 $250 $300 $350 $400 $450 0 100 200 300 400 500 600 700 800 900 2021 2022 2023 2024 2025 2026ThousandsFalling Tons Requires High Rates to Maintain Revenue Tipping Fee Tipping Fee with Falling Tons Basic Fee Tons (falling due to Re+) 1 883K tons is the current 2026 forecast for basic (tipping) fee tons assuming no tonnage reduction from Re+ actions. Page 38 of 108 234/28/2023 Industry standard for utility rate setting includes three key steps Rate Design: A rate structure (fixed and variable charges) assessed to customers that will generate sufficient revenue, be reasonably commensurate with the cost to provide service, and support non-financial objectives. Cost of Service: The equitable allocation of the revenue requirement to the County’s customer classes (e.g., commercial haulers, self-haulers) in proportion to the demands they place on the system. Revenue Requirement: Total amount of money the County must collect to pay expenditures to provide services while also meeting its financial requirements (e.g., debt service, financial reserves) 1 2 3 Source: Solid Waste Rate Setting and Financing Guide, American Public Works AssociationRate RestructurePage 39 of 108 244/28/2023 Traditional Tipping Fee versus Fixed Annual Charge/Tipping Fee Structure $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 Traditional Rate RestructureAnnual Disposal RevenueTipping Fee Revenue Fixed Annual Charge Revenue Tipping fee assessed per ton of disposed waste Fixed annual charge allocated based on previous year’s disposed waste Page 40 of 108 254/28/2023 KC chose the ‘FAC’ based primarily on stakeholder feedback Preferred by a majority of stakeholders over other options Does not shift disposal costs to other cities Maintains incentives to divert waste Easiest to calculate Meets revenue stability and neutrality goals Page 41 of 108 264/28/2023 Implementing a new rate structure presents a variety of challenges •City/Hauler Contract Updates –Most contracts will need to be updated to incorporate the Fixed Annual Charge as it is not currently part of the formula for charging customers •Billing Systems –Cities that do waste billing (instead of hauler) may need to update their billing system •Data Systems –Ensuring data, especially tonnage data, is reliable across systems and throughout the service area is key •Communications –The new structure and related contract changes may require educational materials be sent out to waste customers Page 42 of 108 Thank You! For additional information please contact: Amy Ockerlander King County Solid Waste Division Government Relations aockerlander@kingcounty.gov (206) 263-6701 Page 43 of 108 AGENDA BILL APPROVAL FORM Agenda Subject: Changing a Land Use Law (Tate) (20 Minutes) Date: May 2, 2023 Department: Community Development Attachments: Presentation Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: For discussion only. Background for Motion: Background Summary: There are a variety of federal and state regulations that define the procedures for changing local land use laws and the parameters within which we must work. This presentation will provide a high-level overview of the process, complexity, and resource commitment associated with changing local land use laws. Rev iewed by Council Committees: Councilmember:Brown Staff:Tate Meeting Date:May 8, 2023 Item Number: Page 44 of 108 A U B U R N V A L U E S S E R V I C E E N V I R O N M E N T E C O N O M Y C H A R A C T E R S U S TA I N A B I L I T Y W E L L N E S S C E L E B R A T I O N COMMUNITY DEVELOPMENT AN OVERVIEW OF WHAT IT TAKES TO CHANGE A LOCAL LAND USE LAW JEFF TATE, DIRECTOR CITY COUNCIL STUDY SESSION MAY 8, 2023 Department of Community Development Planning ⚫Building ⚫Development Engineering ⚫Permit Center Economic Development ⚫Community Services ●Code Enforcement Page 45 of 108 Zoning Designations ▪Permitted Uses ▪Development Standards (setbacks, landscaping, parking, signs, illumination, design, etc.) Subdivision REgulations (formal plats, short plats and boundary line adjustments) Grading and Land Clearing Critical Environmental Areas Shorelines Floodplains Building Codes WHAT ARE LAND USE REGULATIONS SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION Page 46 of 108 The Growth Management Act (RCW 36.70A) Regulatory Reform Act (RCW 36.70B) The Shoreline Management Act (RCW 90.58 and WAC 173 -27) State Environmental Policy Act (RCW 43.21C and WAC 197 -11) Best Available Science Criteria (WAC 365 -195) State Subdivision Laws (RCW 58.17) FEMA Floodplain Regulations (Federal) Endangered Species Act (Federal) Clean Water Act (Federal) And Others… LAWS THAT GOVERN LOCAL LAND USE LAWS AND THE PROCESS TO CHANGE THEM SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION Page 47 of 108 Research options Write the law Evaluate policy impacts/internal coordination Prepare staff report Present to Planning Commission Prepare SEPA Checklist Prepare and Post Public Notice Initiate 60 Day State Agency Review PC holds Public Hearing Respond to public inquiries and comments Respond to state agency inquiries Respond to tribal inquiries Respond to Planning Commission questions Revise draft regulation Prepare staff report explaining changes WHAT IT TAKES TO CHANGE A LAW SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION Page 48 of 108 Present changes to Planning Commission at public meeting Prepare written planning commission findings Prepare agenda bill and packet for city council study session Present Planning Commission recommendation to Council Prepare agenda bill for City Council action Write cover ordinance Distribute adopted ordinance to interested parties Publish ordinance Incorporation into full city code WHAT IT TAKES TO CHANGE A LAW SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION Page 49 of 108 Current Regulation ▪“The rear yard setback for a single family residence is 10 feet” Proposed Regulation ▪“The rear yard setback for a single family residence is 10 5 feet” 180 hours of labor 270 days of process SAMPLE CHANGE IN REGULATIONS –SIMPLE SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION Page 50 of 108 Current Regulation ▪Land use laws that are silent on the regulation of marijuana related businesses Proposed Regulation ▪Create zoning, land use, and licensing regulations for marijuana producers, processors, and retailers Response to Changing State Laws 1,500 hours of labor 15 months SAMPLE CHANGE IN REGULATIONS –COMPLEX SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION Page 51 of 108 Current Regulation ▪Traditional housing regulations that govern lot size, density, and types of allowable uses Proposed Regulation ▪Incorporation of HB 1110 Missing Middle legislation into Auburn City Code 2,000 hours of labor 24 months Have a head start on this due to proactive Housing Action Plan and staff efforts are already underway SAMPLE CHANGE IN REGULATIONS –COMPLEX SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION Page 52 of 108 Questions? SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION Page 53 of 108 AGENDA BILL APPROVAL FORM Agenda Subject: Economic Development Update - 1st Quarter 2023 (Tate) (15 Minutes) Date: May 2, 2023 Department: Community Development Attachments: Presentation Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background for Motion: Background Summary: Economic Development staff will present on a quarterly basis an update on items being worked on throughout the year. This presentation will focus on the first quarter of 2023. Rev iewed by Council Committees: Councilmember:Baldwin Staff:Tate Meeting Date:May 8, 2023 Item Number: Page 54 of 108 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 CITY COUNCIL PRESENTATION ECONOMIC DEVELOPMENT QUARTER 1 UPDATE PRESENTED BY DEPARTMENT OF COMMUNITY DEVELOPMENT JENN FRANCIS ECONOMIC DEVELOPMENT MANAGER MAY 8, 2023 Department of Community Development Planning ⚫Building ⚫Development Engineering ⚫Permit Center Economic Development ⚫Community Services ⚫Code EnforcementPage 55 of 108 CITY OF AUBURN’S ECONOMIC DEVELOPMENT DIVISION Abid Rahmani Economic Development Coordinator Jenn Francis Economic Development Manager Page 56 of 108 TOPICS TO EXPLORE SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION ❑Auburn Area Chamber of Commerce ❑Marketing Campaigns ❑Business Connect Events ❑Downtown Auburn Cooperative & BIA Update ❑Downtown Engagement ❑Comprehensive Plan Update ❑Business Outreach Meetings ❑Tourism ❑Green River College Small Business Center ❑Good Neighbor Agreement Meetings ❑Presentation to Women’s Council of Realtors ❑Preparing for 2023 Civics Academy ❑What We are Working on for 2nd Quarter Page 57 of 108 The City has renewed its contract with the Auburn Area Chamber of Commerce for 2023 at $25,000. AUBURN AREA CHAMBER OF COMMERCE Page 58 of 108 OUTLET COLLECTION MARKETING CAMPAIGN SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATIONPage 59 of 108 OUTLET COLLECTION MARKETING CAMPAIGN SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION Post your Auburn, WA Picture Moment on Instagram & tag us along with the #EXPLOREAUBURN for a chance to win monthly giveaways from local Auburn businesses. Number of Pictures Posted with #EXPLOREAUBURN: 342 Page 60 of 108 February Winner March Winner #EXPLOREAUBURN The winning photo is chosen at random. The prize includes 4 tickets to Emerald Downs, PNW Coffee Sticker, Explore Auburn logo gear (t-shirt, key chain, post card, etc.) and gift card to Gosanko Chocolate. Page 61 of 108 PACIFIC RACEWAY MARKETING CAMPAIGN SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATIONPage 62 of 108 BUSINESS CONNECT EVENTS SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION Events are held on the first Wednesday of the month from 3:00 –5:00 p.m. These events replaced the 3nonetworking events. Page 63 of 108 BUSINESS CONNECT EVENTS SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION The Average Attendance: 40 January –Outlet Collection February –MakerSpace March –Joy Hour April –Junior Achievement May –White River Amphitheatre June –PNW Coffee Co. July –West Hill Deli August –Alpine Ridge Insurance September –Auburn Municipal Airport Page 64 of 108 DOWNTOWN AUBURN COOPERATIVE & BIA UPDATE SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION BIA ACTIVITY DURING 1ST QUARTER: JOHN ROTTLE WAS ELECTED CHAIRPERSON GIOVANNI DIQUATTRO WAS ELECTED VICE CHAIRPERSON THE DAC CONTRACT WAS APPROVED BY THE BIA AND THE CITY. THE BUDGET AND CONTRACT APPROVED WITH AN INCREASE OF FUNDING TO THE DAC TO $75,000. BIA FUNDED $50,000 AND THE CITY’S CONTRIBUTION IS $25,000. THE BIA VOTED TO FUND SEVERAL PROJECTS TO BE ADMINISTERED BY THE DAC. THESE INCLUDE: DOWNTOWN PLANTERS, LIGHTING, MURALS AND BIKE RACKS Page 65 of 108 DOWNTOWN ENGAGEMENT SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION PLACEMENT OF NEW DOWNTOWN PLANTERS ON APRIL 20TH, 2023 IN TIME FOR THE DAC TO PLANT ON SATURDAY, APRIL 22ND DURING CLEAN SWEEP. Page 66 of 108 Cameron helps to clean up our downtown 15 hours a week. We work with Enso Employment Services, who provides leads to supervise Cameron out in the field. MANAGING DOWNTOWN PROJECT HELPERS Page 67 of 108 The conference was held from March 27 th -29th in Boston. Abid attended several classes with focus on Community Wealth Building, Resilient & Future Focused Main Streets and Beautification and Revitalization of Downtown. MAIN STREET AMERICA CONFERENCE Page 68 of 108 ECONOMIC DEVELOPMENT ELEMENT -COMP PLAN SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATIONPage 69 of 108 BUSINESS OUTREACH MEETINGS SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATIONPage 70 of 108 TOURISM –LODGING TAXES SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION •Chapter 82.08 RCW establishes authority of a city to create a lodging tax •Auburn City Code Chapter 3.58 Enacts the Lodging Tax (enacted in 2001) •Tax imposed on lodging stays at hotels and motels •Tax rate is 1% •Special fund created •Can only fund tourist promotion, acquisition of tourism-related facilities, or operation of tourism- related facilities •Auburn City Code Chapter 2.76 creates the Lodging Tax Advisory Committee (LTAC) •An LTAC is a requirement under Chapter 82.08 RCW •Charged with helping direct lodging tax dollar investments •7 members –Mayor, 3 members representing hotels/motels, 3 members from those who might receive funding from tourism dollars Page 71 of 108 TOURISM –APPROACH SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION •City contracts with Chamber for tourism services. 3 year contract spanning 2022 thru 2024. $155,000 per year. City collects about $170,000 per year in lodging taxes. •Chamber provides the following services: •Creation of a tourism strategy and branding – “Explore Auburn” and “Stay Golden” •Oversight of Explore Auburn website and social media pages •Oversight of a $20,000 grant line item (contained within the $155,000 contract) to provide funding for events that draw visitors from beyond 50 miles. •Facilitation of Tourism Board meetings. •Chamber presents tourism work plans, strategies, and summaries to the LTAC. Page 72 of 108 THE CITY’S PARTNERSHIP IS FUNDED BY A GRANT FROM THE PORT OF SEATTLE THAT IS OVERSEEN BY THE ECONOMIC DEVELOPMENT DIVISION. GRC SBC –AUBURN 1221 D STREET NE AUBURN, WA 98002 GREEN RIVER COLLEGE SMALL BUSINESS CENTER Page 73 of 108 GOOD NEIGHBOR AGREEMENT QUARTERLY MEETING AT DON’S PLACE SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATIONPage 74 of 108 PRESENTATION TO WOMEN’S COUNCIL OF REALTORS SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION Sam Pace –Legislative Liaison with Olympia Jenn Francis –City of Auburn Keith Niven –City of Federal Way Chaney Skadsen –City of Federal Way Amy Taylor, City of Maple Valley Page 75 of 108 PREPARING FOR 2023 CIVICS ACADEMY SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATIONPage 76 of 108 UPCOMING ECONOMIC DEVELOPMENT TOPICS FOR 2 ND QUARTER SERVICE ⚫ENVIRONMENT ⚫ECONOMY ⚫CHARACTER ⚫SUSTAINABILITY ⚫WELLNESS ⚫CELEBRATION ❑DOWNTOWN ENGAGEMENT ❑PACIFIC RACEWAY SPONSORSHIP ❑NORTH AUBURN BUSINESS MEETING UPDATE ❑SEEKING A VENDOR TO PROVIDE TRACKING AND METRICS OF ECONOMIC ACTIVITY ❑COMP PLAN UPDATE ❑PREPARING FOR NATIONAL NIGHT OUT ❑AND MORE…. Page 77 of 108 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 Department of Community Development Planning ⚫Building ⚫Development Engineering ⚫Permit Center Economic Development ⚫Community Services ⚫Code Enforcement QUESTIONS? JENN FRANCIS, ECONOMIC DEVELOPMENT MANAGER JFRANCIS@AUBURNWA.GOV 253-215-8744 -OFFICE 253-553-6517 -CELL Page 78 of 108 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6906 (Council) Date: May 3, 2023 Department: Attachments: Ord.6906 - ACC 2.08 Ord.6906 - Exhibit A Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background for Motion: Background Summary: In November 2022, Council determined there was a need to clarify the scope Independent Salary Commission (ISC). Council formed the Ad Hoc committee and reviewed the historical practices of the ISC based on meeting minutes and information provided by HR. The Committee found that in setting the ISC’s purpose, ACC 2.08.020 use of the term “compensation,” could be interpreted to include both salary and benefits (sick leave, vacation, etc.) of the Mayoral position. However, in practice, the Committee determined the ISC has not been voting on vacation leave, sick leave, or management leave benefits. Ordinance 6906 provides updates to clarify the ISC’s purpose is to set only the salaries of City elected officials and to exclude non-monetary employment benefits and leave allocation decisions from the scope of the ISC. Rev iewed by Council Committees: Councilmember:Staff: Meeting Date:May 8, 2023 Item Number: Page 79 of 108 -------------------------------- Ordinance No. 6906 May 4, 2023 Page 1 of 3 IMANAGE\370702\0001\10667856.v1-5/3/23 ORDINANCE NO. 6906 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AMENDING SECTION 2.08.020 OF THE AUBURN CITY CODE RELATED TO THE PURPOSE OF THE CITY’S INDEPENDENT SALARY COMMISSION WHEREAS, in 2014, pursuant to RCW 35.21.015, the City enacted Auburn City Code (ACC) 2.08 which created an Independent Salary Commission (ISC) to establish the salaries of City councilmembers. ACC 2.08 was amended in 2018 to include the establishment of the City Mayor’s salary to the ISC’s authority; and WHEREAS, ACC 2.08.020 sets forth the ISC’s purpose, and indicates that ISC salary authority includes “all compensation” paid or received by the mayor or councilmembers, whether or not the compensation “is identified as sala ry.” ACC 2.08 does not define the term “compensation,” and similar to RCW 35.21.015, it does not expressly refer to city-provided employment benefits (such as vacation leave, sick leave, etc.) as included in “salary”; and WHEREAS, in February 2023 the Auburn City Council formed an ad hoc committee to examine the benefits provided to the City’s mayoral position. In light of the undefined term “compensation” in ACC 2.08.020, the committee’s examination required it to determine whether the ISC’s salary authority also included authority over employment benefits; and WHEREAS, the committee reviewed records of the ISC’s activities since 2018, including the materials provided to the ISC for its consideration, and minutes of ISC meetings. The records revealed that the ISC had never been requested to establish or Page 80 of 108 -------------------------------- Ordinance No. 6906 May 4, 2023 Page 2 of 3 IMANAGE\370702\0001\10667856.v1-5/3/23 adjust employment benefits and had never considered or established such benefits. Instead, employment benefits were set by City policy or the Council, and the ISC had only established the salaries of the City’s mayor and councilmembers consistent with ACC 2.08.020 and RCW 35.21.015; and WHEREAS, on April 17, 2023, the committee reported its findings to the Council, and recommended that the Council revised ACC 2.08.020 to clarify the ISC’s purpose is to set only the salaries of City elected officials, defined to expressly exclude non-monetary employment benefits and leave allocation, including but not limited to any payout of accrued leave set forth in City policy or the ACC; and WHEREAS, to avoid future confusion over the issue, the Council, by motion, directed the drafting of this ordinance to amend ACC 2.08.020, clarifying with express language that the ISC’s purpose in setting salaries does not include authority over employment benefits and leave; and WHEREAS, the City Council finds that ACC 2.08.020 should be further amended for additional clarity and precision. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. Amendment to City Code. Section 2.08.020 of the Auburn City Code is hereby amended as set forth in Exhibit A to this Ordinance. Section 2. Implementation. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Page 81 of 108 -------------------------------- Ordinance No. 6906 May 4, 2023 Page 3 of 3 IMANAGE\370702\0001\10667856.v1-5/3/23 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 of it to any person or circumstance, will not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 4. Effective date. This Ordinance will take effect and be in force five days from and after its passage, approval, and publication as provided by law. INTRODUCED: _______________ PASSED: ____________________ APPROVED: _________________ ____________________________ NANCY BACKUS, MAYOR ATTEST: ____________________________ Shawn Campbell, MMC, City Clerk APPROVED AS TO FORM: ____________________________ Kendra Comeau, City Attorney Published: ____________________ Page 82 of 108 EXHIBIT A ORDINANCE NO. 6906 ACC 2.08.020 Purpose of Independent Salary Commission; Establishment of Uniform Salaries. A. Purpose of Independent Salary Commission. The purpose of the independent salary commission shall be to review and establish the salaries of the City’smembers of the city councilmembers and the mayor. For the purposes of this chapterhereof, the “salary” authority of the independent salary commission shall means include all monetary compensation that may be paid to or received by councilmembers or and the mayor, (whether or not it is such compensation is expressly identified as salary), but does not include City employment benefits or leave (including payout of leave, if any) described in this Title or in City policy.. Also, for the purposes hereof, t B. Establishment of uniform councilmember salaries—exception. The Independent Salary Commission shall establish uniform City councilmember salaries , identified by the independent salary commission shall be uniform among the same category or class of elected officialsexcept that the Commission may set . This provision, however, does not prevent or preclude the independent salary commission from providing for a different salary for the council member selected as the deputy mayor due to the additional duties of that position.as the deputy mayor of the city. Rather, the independent salary commission would be entitled to consider the additional duties of the deputy mayor in setting salaries for that position. Page 83 of 108 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6907 Option A (Council) Date: May 3, 2023 Department: Attachments: Ord.6907A Ord.6907A, Exhibit A Ord.6907A, Exhibit B Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background for Motion: Background Summary: Ordinance 6907 – A · Mayoral Vacation Leave: o Introduces a vacation leave cap of 364 hours o Sets an accrual rate Years served as City M ayor: Vacation leave accrual rate: Start date-4 years 96 hours per year 5-9 years 120 hours per year 10-14 years 144 hours per year 15-19 years 168 hours per year 20-24 years 192 hours per year 25th year +208 hours per year o Allows for full payout up to the new cap · Mayoral Sick leave o Introduces a sick leave cap of 960 hours o Sets the accrual rate of 8 hours per month o Establishes a graduated payout of sick leave based on tenure as Mayor Page 84 of 108 Years of City M ayor service: % of accrued sick leave hours to be paid: 0-4 0% of accrued hours 5-14 25% of accrued hours 15-24 50% of accrued hours 25+100% of accrued hours Imple me ntation (6907 – A) · Existing Accruals o Vacation Leave o Mayor Backus has accrued approximately 1042 hours of unused vacation leave o All accrued vacation leave beyond 182 hours will be paid out within 30 days o Sick Leave o Mayor Backus has accrued approximately 836 hours of unused sick leave o All accrued sick leave will be paid out within 30 days at 100% · Going Forward o Vacation Leave o Retains a bank of 182 hours of the Mayor’s accrued leave to be available for use o Allows for new accruals to begin in accordance with the amended ordinance o Sick Leave o Provides for a new sick leave bank which shall be front-loaded with 120 sick leave hours, available for immediate use in accordance with the amended ordinance Rev iewed by Council Committees: Councilmember:Staff: Meeting Date:May 8, 2023 Item Number: Page 85 of 108 Page 86 of 108 -------------------------------- Ordinance No. 6907 May 3, 2023 Page 1 of 5 IMANAGE\370702\0001\10667841.v1-5/3/23 ORDINANCE NO. 6907-A AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RELATING TO THE SALARY AND EMPLOYMENT BENEFITS OF THE CITY MAYOR POSITION, AMENDING AUBURN CITY CODE SECTIONS 2.03.020, 2.63.120 AND 2.63.160, AND PROVIDING (IN A NON-CODIFIED SECTION) EMPLOYMENT BENEFIT PAYMENT TERMS FOR THE CURRENT CITY MAYOR WHEREAS, in February 2023, the City Council reviewed Auburn City Code (ACC) provisions related to employment benefits provided to City employees , including the Mayor; WHEREAS, during this review the Council identified ACC sections related to the salary and employment benefits for the City Mayor position that it wished to study further. The Council formed a three councilmember ad hoc committee (Committee) to undertake this study; WHEREAS, the Committee studied the manner in which the City Mayor’s salary is established through the City’s independent salary commission (ISC) in ACC 2.08. The Committee also compared the City Mayor position’s non-salary benefits, set forth in ACC 2.63 and City policies, with the benefit provisions for other City employees; WHEREAS, the Committee’s study revealed that combined language of ACC sections and City policies related to non-salary benefits for the City Mayor position provided the City Mayor position with unlimited vacation leave accrual, and the ability to receive payment for 100% of accrued vacation and sick leave hours upon separation from City employment. This combined language resulted in a significant cost to the City and employment benefits for the City Mayor position unavailable to other City employees; Page 87 of 108 -------------------------------- Ordinance No. 6907 May 3, 2023 Page 2 of 5 IMANAGE\370702\0001\10667841.v1-5/3/23 WHEREAS, following its study, the Commission reported its findings and recommendations to the Council on April 17, 2023. The Commission’s report included recommendations that the Council do the following: (1) revise ACC 2.08.020 to clarify the City ISC’s purpose in setting the City Mayor position’s salary; (2) amend ACC 2.03 to establish a vacation leave accrual rate, cap, and associated payment for the City Mayor position; (3) amend ACC 2.03 to provide for an unused sick leave accrual rate, cap, and associated payment schedule based on City Mayor years of service; and (4) provide for payments of accrued leave to current City Mayor Nancy Backus, to coincide with the recommended City Code changes. WHEREAS, the Council considered and adopted the Commission’s findings and recommendations. By motion at its April 17, 2023 meeting, the Council directed the drafting of this Ordinance to amend applicable ACC sections related to the City Mayor position’s salary and employment benefits, and to provide for benefit payment terms applicable to the current City Mayor; WHEREAS, the Council finds this Ordinance is an extension of the Council’s fiscal stewardship of City’s funds by bringing the non-salary benefits afforded to the City Mayor position in line with neighboring jurisdictions and tenets of responsible budgeting; WHEREAS, the Council finds that applicable provisions of ACC 2.03 and 2.63 should be further revised to ensure precision and clarity, consistent with the purpose and intent of this Ordinance; Page 88 of 108 -------------------------------- Ordinance No. 6907 May 3, 2023 Page 3 of 5 IMANAGE\370702\0001\10667841.v1-5/3/23 WHEREAS, the Council further finds that the passage of this Ordinance is in the best interest of the City and its employees by bringing the non-salary benefits for the City Mayor position more in line with those for unaffiliated City staff. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. Amendment of City Code section 2.03.020. Auburn City Code section 2.03.020 is hereby amended to read as set forth in Exhibit A attached to this Ordinance. Section 2. Amendment of City Code sections 2.63.120 and 2.63.160. Auburn City Code sections 2.63.120 (related to the accumulation of City employee vacation leave hours), and 2.63.160 (related to sick leave hours for City employees) are hereby amended to read as set forth in Exhibit B attached to this Ordinance. Section 3. Payment to current City Mayor for accrued leave hours. To coincide with the City Code amendments in Sections 1 and 2 of this Ordinance, the Council directs that current City Mayor Nancy Backus receive the following from the City: a. Payment for accrued unused vacation leave hours. As of the passage of this Ordinance, Mayor Backus has accrued approximately 1042 hours of unused vacation leave. Within 30 days of the effective date of this Ordinance, the City shall pay Mayor Backus (by City issued check at her current salary rate) for any unused accrued vacation leave hours exceeding 182 hours. This payment will reduce Mayor Backus’s available vacation leave hour balance to 182 hours, Page 89 of 108 -------------------------------- Ordinance No. 6907 May 3, 2023 Page 4 of 5 IMANAGE\370702\0001\10667841.v1-5/3/23 available for use in accordance with the City Code as amended by this Ordinance, and with applicable law and City policy. b. Payment for accrued unused sick leave hours. As of the passage of this Ordinance, Mayor Backus has accrued approximately 836 hours of unused sick leave. Within 30 days of the effective date of this Ordinance, the City shall pay Mayor Backus (by City issued check at her current salary rate) for 100% of these accrued sick leave hours. This payment will eliminate Mayor Backus’s current sick leave bank. Upon issuance of payment, Mayor Backus’s sick leave bank shall be front-loaded with 120 sick leave hours, available for her immediate use in accordance with the City Code as amended by this Ordinance, and with applicable law and City policy. This Ordinance Section 3 shall not be codified for inclusion in the Auburn City Code. Section 4. Implementation. The Mayor is authorized to implement those administrative procedures consistent with and necessary to carry out the directives of this legislation. Section 5. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance, or the invalidity of the application of it to any person or circumstance, will not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Page 90 of 108 -------------------------------- Ordinance No. 6907 May 3, 2023 Page 5 of 5 IMANAGE\370702\0001\10667841.v1-5/3/23 Section 6. Effective date. This Ordinance will take effect and be in force five days from and after its passage, approval, and publication as provided by law. INTRODUCED: _______________ PASSED: ____________________ APPROVED: _________________ ____________________________ NANCY BACKUS, MAYOR ATTEST: ____________________________ Shawn Campbell, MMC, City Clerk APPROVED AS TO FORM: ____________________________ Kendra Comeau, City Attorney Published: ____________________ Page 91 of 108 IMANAGE\370702\0001\10667844.v1-5/3/23 EXHIBIT A—ORD. NO. 6907-A ACC 2.03.020 Mayor’s Ssalary, leave and benefits. A. Salary. The City Mayor’s salary for the office of the mayor shall be established by the City’s Independent Salary Commission in accordance with ACC 2.08. on an annual basis through the adoption of the yearly budget ordinance. B. Leave and benefits. 1. Vacation leave. a. Accrual of vacation leave. Vacation leave for the Mayor shall accrue at the following rates (based on years served as the City Mayor), up to for a maximum total accrual of 364 hours: Years served as City Mayor: Vacation leave accrual rate: Start date-4 years 96 hours per year 5-9 years 120 hours per year 10-14 years 144 hours per year 15-19 years 168 hours per year 20-24 years 192 hours per year 25th year + 208 hours per year b. Payment for unused accrued vacation leave hours. (i) Each calendar year, the Mayor shall have the option to receive payment (at then current salary rate) for up to 80 hours of unused accrued vacation leave hours. The Mayor may elect to receive this payment as a deferred compensation account contribution. (ii) The Mayor shall be entitled to receive payment (at then current salary rate) for any unused accrued vacation hours up to the 364 hour accrual limit upon conclusion of service as the City Mayor. 2. Sick leave. a. Accrual of sick leave. Sick leave for the Mayor shall accrue at the rate of 8 hours per month, for a maximum total accrual of 960 sick leave hours. b. Payment for unused accrued sick leave hours. (i) By December 31 of each calendar year, the Mayor shall have the option to receive payment (at then current salary rate) for 25% of any sick leave hours accrued during Page 92 of 108 IMANAGE\370702\0001\10667844.v1-5/3/23 that year that exceed the 960 hour maximum. Payment shall be made by January 31 the following calendar year. (ii) The Mayor shall be entitled to receive payment (at then current salary) for unused accrued sick leave hours up to the maximum cap of 960 hours at the conclusion of service as Mayor. Such payment shall be made according to the following schedule, based on years served as the City Mayor: Years of City Mayor service: % of accrued sick leave hours to be paid: 0-4 0% of accrued hours 5-14 25% of accrued hours 15-24 50% of accrued hours 25+ 100% of accrued hours 3. Other leave and benefits. The Mayor shall be entitled to receive other forms of leave or benefits required by law or generally available to other City employees. The use and management of such other leave or benefits shall be in accordance with applicable law and City policies and procedures. Page 93 of 108 IMANAGE\370702\0001\10667849.v1-5/3/23 EXHIBIT B—ORD. 6907-A ACC 2.63.120 Vacations - Accumulation Vacations of employees shall not ordinarily be accumulative, except where the department head finds that there are special circumstances justifying an extended vacation, they may authorize the employee to accumulate up to five days or two duty shifts for fire department employees of unused vacation leave each year for the purpose of extending the employee’s annual vacation period in the year following, but in no event shall an employee not subject to a collective bargaining agreement accumulate more than that which would be earned in two years at the employee’s accrual rate. Any vacation leave accumulated in excess of this amount shall be automatically removed from the employee’s vacation balance by the finance department. Due to the demands of the office and the responsibilities pertaining thereto, the mayor of the city shall not be subject to the aforementioned provision and shall be authorized to accumulate unlimited annual leave at their discretion. In the event that a collective bargaining agreement is silent on the issue of vacation accumulation, then accumulation shall be limited to a maximum of one year annual vacation leave plus five days additional unused and accrued vacation leave carried over from a previous year or two duty shifts for fire department employees working shift work. ACC 2.63.160 Sick leave - Employees hired before January 1, 1985. This section applies only to City employees hired before January 1, 1985. A. All full-time employees of the city, except those covered by a union agreement, shall be entitled to sick leave when they are incapacitated for the performance of their duties by reason of sickness or injury or when, through exposure to contagious disease, the presence of the employee would jeopardize the health of others. Such sick leave shall be at the rate of eight hours for each calendar month of employment and if not used shall accumulate to a maximum of 960 hours, exclusive of the ordinary vacation time of the employee. B. Sickness shall be reported at the beginning of any period of illness to the department as soon as practically possible. C. A doctor’s certificate will be furnished at the discretion of the department head or personnel director whenever an employee claims sick leave for the protection of the employee and fellow employees. Page 94 of 108 IMANAGE\370702\0001\10667849.v1-5/3/23 D. Part-time employees shall not be entitled to sick leave unless approved by the mayor. E. An employee shall be allowed up to three days’ sick leave for illness in the immediate family that requires their presence, upon the approval o f the department head. Immediate family includes under this caption only father, mother, spouse or children of the employee. F. Any employee found to have abused the sick leave privilege by falsification or misrepresentation may be subject to dismissal at the discretion of the mayor. G. In the case of injury or illness which is covered by industrial insurance, an amount of sick leave may be used to pay the difference between industrial insurance, workman’s compensation and the employee’s regular rate of pay and no combination of payments received added to sick leave will exceed the regular rate of pay. H. No portion of this article regarding sick leave shall conflict with or cancel rules and regulations set by the civil service commission as it pertains to the fire and police department. I. Upon termination shall be reimbursed at the 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: Upon Completion of Years of Service Percent of Accrued Unused Sick Leave 0 through 4 years 0% 5 through 14 years 25% 15 through 24 years 50% 25 years and over 100% This section shall not apply to employees hired on or after January 1, 1985; provided, however, due to the demands of the office and the responsibilities pertaining thereto, the mayor of the city shall be authorized to receive payment for 100 percent of accrued unused sick leave upon leaving office. Page 95 of 108 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6907 Option B (Council) Date: May 4, 2023 Department: Attachments: Ord.6907 - Option B Ord.6907 - Option B, Exhibit A Ord. 6907 - Option B, Exhibit B Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background for Motion: Background Summary: Ordinance 6907 – B During a City Council meeting in November 2022, Council identified ordinance language related to the handling of leave accruals for the Mayoral position that revealed a financial exposure and potential room for abuse. In order to reduce risk for the city, Council voted to table the ordinances for additional review and created the Ad Hoc Committee to investigate and propose improvements. The Ad Hoc Committe e de ve lope d Ordinance 6907 – B afte r continue d work with city administration. Ordinance 6907 – B · Mayoral Vacation Leave: o Introduces a vacation leave cap of 364 hours o Sets an accrual rate Years served as City M ayor: Vacation leave accrual rate: Start date-4 years 96 hours per year 5-9 years 120 hours per year 10-14 years 144 hours per year 15-19 years 168 hours per year 20-24 years 192 hours per year 25thyear +208 hours per year o Allows for full payout up to the new cap Page 96 of 108 · Mayoral Sick leave o Introduces a sick leave cap of 960 hours o Sets the accrual rate of 8 hours per month o Establishes a graduated payout of sick leave based on tenure as Mayor Years of City M ayor service: % of accrued sick leave hours to be paid: 0-4 0% of accrued hours 5-14 25% of accrued hours 15-24 50% of accrued hours 25+100% of accrued hours Implementation (6907 – B) · Existing Accrued Time o Creates a separate “frozen bank” to hold the Mayor’s accrued vacation leave and sick leave hours and locks the value of those hours to the current salary rate o Mayor Backus has accrued approximately 1042 hours of unused vacation leave o Mayor Backus has accrued approximately 836 hours of unused sick leave o Allows the Mayor to spend down hours in the bank, as needed, for the remainder of the current term. o Allows for payout of any remaining hours in the bank at the end of the current term at her rate of pay at the time the ordinance is adopted (not her rate of pay at the end of her current term). · New Accruals o Going forward, new vacation leave and sick leave accruals will be accumulated and paid out as set forth in the amended ordinance. Rev iewed by Council Committees: Councilmember:Staff: Meeting Date:May 8, 2023 Item Number: Page 97 of 108 Page 98 of 108 -------------------------------- Ordinance No. 6907 May 4, 2023 Page 1 of 6 IMANAGE\370702\0001\10668319.v1-5/4/23 ORDINANCE NO. 6907-B AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RELATING TO THE SALARY AND EMPLOYMENT BENEFITS OF THE CITY MAYOR POSITION, AMENDING AUBURN CITY CODE SECTIONS 2.03.020, 2.63.120 AND 2.63.160, AND PROVIDING (IN A NON-CODIFIED SECTION) EMPLOYMENT BENEFIT PAYMENT TERMS FOR THE CURRENT CITY MAYOR WHEREAS, in February 2023, the City Council reviewed Auburn City Code (ACC) provisions related to employment benefits provided to City employees , including the Mayor; WHEREAS, during this review the Council identified ACC sections related to the salary and employment benefits for the City Mayor position that it wished to study further. The Council formed a three councilmember ad hoc committee (Committee) to undertake this study; WHEREAS, the Committee studied the manner in which the City Mayor’s salary is established through the City’s independent salary commission (ISC) in ACC 2.08. The Committee also compared the City Mayor position’s non-salary benefits, set forth in ACC 2.63 and City policies, with the benefit provisions for other City employees; WHEREAS, the Committee’s study revealed that combined language of ACC sections and City policies related to non-salary benefits for the City Mayor position provided the City Mayor position with unlimited vacation leave accrual, and the ability to receive payment for 100% of accrued vacation and sick leave hours upon separation from City employment. This combined language resulted in a significant cost to the City and employment benefits for the City Mayor position unavailable to other City employees; Page 99 of 108 -------------------------------- Ordinance No. 6907 May 4, 2023 Page 2 of 6 IMANAGE\370702\0001\10668319.v1-5/4/23 WHEREAS, following its study, the Commission reported its findings and recommendations to the Council on April 17, 2023. The Commission’s report included recommendations that the Council do the following: (1) revise ACC 2.08.020 to clarify the City ISC’s purpose in setting the City Mayor position’s salary; (2) amend ACC 2.03 to establish a vacation leave accrual rate, cap, and associated payment for the City Mayor position; (3) amend ACC 2.03 to provide for an unused sick leave accrual rate, cap, and associated payment schedule based on City Mayor years of service; and (4) provide for payments of accrued leave to current City Mayor Nancy Backus, with the recommended City Code changes. WHEREAS, the Council considered and adopted the Commission’s findings and recommendations. By motion at its April 17, 2023 meeting, the Council directed the drafting of this Ordinance to amend applicable ACC sections related to the City Mayor position’s salary and employment benefits, and to provide for benefit payment terms applicable to the current City Mayor; WHEREAS, upon recommendation of staff, following the April 17, 2023, meeting, the Commission recommended the Ordinance permit City Mayor Nancy Backus to freeze her accrued vacation and sick leave at her current rate of pay, and to receive payment for any remaining frozen leave at the conclusion of her term payable at her rate of pay in effect as of the effective date of this Ordinance; WHEREAS, the Council finds this Ordinance is an extension of the Council’s fiscal stewardship of City’s funds by bringing the non-salary benefits afforded to the City Mayor position in line with neighboring jurisdictions and tenets of responsible budgeting; Page 100 of 108 -------------------------------- Ordinance No. 6907 May 4, 2023 Page 3 of 6 IMANAGE\370702\0001\10668319.v1-5/4/23 WHEREAS, the Council finds that applicable provisions of ACC 2.03 and 2.63 should be further revised to ensure precision and clarity, consistent with the purpose and intent of this Ordinance; WHEREAS, the Council further finds that the passage of this Ordinance is in the best interest of the City and its employees by bringing the non-salary benefits for the City Mayor position more in line with those for unaffiliated City staff. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. Amendment of City Code section 2.03.020. Auburn City Code section 2.03.020 is hereby amended to read as set forth in Exhibit A attached to this Ordinance. Section 2. Amendment of City Code sections 2.63.120 and 2.63.160. Auburn City Code sections 2.63.120 (related to the accumulation of City employee vacation leave hours), and 2.63.160 (related to sick leave hours for City employees) are hereby amended to read as set forth in Exhibit B attached to this Ordinance. Section 3. Payment to current City Mayor for accrued leave hours. To coincide with the City Code amendments in Sections 1 and 2 of this Ordinance, the Council directs that current City Mayor Nancy Backus receive the following from the City: a. Payment for accrued unused vacation leave hours. As of the passage of this Ordinance, Mayor Backus has accrued approximately 1042 hours of unused vacation leave. Upon the effective date of this Ordinance, the Mayor’s unused accrued vacation leave hours shall be frozen. Such frozen vacation leave Page 101 of 108 -------------------------------- Ordinance No. 6907 May 4, 2023 Page 4 of 6 IMANAGE\370702\0001\10668319.v1-5/4/23 may be used at the request of Mayo r Backus during the remainder of her current term as Mayor with the City or cashed out to Mayor Backus in a single paycheck issued no later than January 8, 2026, at her salary rate in effect as of the effective date of this Ordinance. The Administration shall track the Mayor Backus’s frozen vacation leave balance and ensure that it is not commingled with her active vacation leave balance that will begin to accrue following the passage of this Ordinance in accordance with Auburn City Code section 2.03.020, as amended by this Ordinance. This frozen accrued vacation leave is further exempt from the optional annual payout set out in Auburn City Code section 2.03.020(B)(1)(b)(i), as amended by this Ordinance. b. Payment for accrued unused sick leave hours. As of the passage of this Ordinance, Mayor Backus has accrued approximately 836 hours of unused sick leave. Upon the effective date of this Ordinance, the Mayor’s unused accrued sick leave hours shall be frozen. Such frozen sick leave may be used at the request of Mayor Backus during the remainder of her current term as Mayor with the City or cashed out to Mayor Backus in a single paycheck issued no later than January 8, 2026, at her salary rate in effect as of the effective date of this Ordinance. The Administration shall track the Mayor Backus’s frozen sick leave balance and ensure that it is not commingled with her active leave balance that will begin to accrue following the passage of this Ordinance in accordance with Auburn City Code section 2.03.020, as amended by this Ordinance. This frozen accrued sick Page 102 of 108 -------------------------------- Ordinance No. 6907 May 4, 2023 Page 5 of 6 IMANAGE\370702\0001\10668319.v1-5/4/23 leave is further exempt from the optional annual payout set out in Auburn City Code section 2.03.020(B)(2)(b)(i), as amended by this Ordinance. This Ordinance Section 3 shall not be codified for inclusion in the Auburn City Code. Section 4. Implementation. The Mayor is authorized to implement those administrative procedures consistent with and necessary to carry out the directives of this legislation. Section 5. Severability. The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance, or the invalidity of the application of it to any person or circumstance, will not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 6. Effective date. This Ordinance will take effect and be in force five days from and after its passage, approval, and publication as provided by law. INTRODUCED: _______________ PASSED: ____________________ APPROVED: _________________ ____________________________ NANCY BACKUS, MAYOR Page 103 of 108 -------------------------------- Ordinance No. 6907 May 4, 2023 Page 6 of 6 IMANAGE\370702\0001\10668319.v1-5/4/23 ATTEST: ____________________________ Shawn Campbell, MMC, City Clerk APPROVED AS TO FORM: ____________________________ Kendra Comeau, City Attorney Published: ____________________ Page 104 of 108 IMANAGE\370702\0001\10667859.v1-5/3/23 EXHIBIT A—ORD. NO. 6907-B ACC 2.03.020 Mayor’s Ssalary, leave and benefits. A. Salary. The City Mayor’s salary for the office of the mayor shall be established by the City’s Independent Salary Commission in accordance with ACC 2.08. on an annual basis through the adoption of the yearly budget ordinance. B. Leave and benefits. 1. Vacation leave. a. Accrual of vacation leave. Vacation leave for the Mayor shall accrue at the following rates (based on years served as the City Mayor), up to for a maximum total accrual of 364 hours: Years served as City Mayor: Vacation leave accrual rate: Start date-4 years 96 hours per year 5-9 years 120 hours per year 10-14 years 144 hours per year 15-19 years 168 hours per year 20-24 years 192 hours per year 25th year + 208 hours per year b. Payment for unused accrued vacation leave hours. (i) Each calendar year, the Mayor shall have the option to receive payment (at then current salary rate) for up to 80 hours of unused accrued vacation leave hours. The Mayor may elect to receive this payment as a deferred compensation account contribution. (ii) The Mayor shall be entitled to receive payment (at then current salary rate) for any unused accrued vacation hours up to the 364 hour accrual limit upon conclusion of service as the City Mayor. 2. Sick leave. a. Accrual of sick leave. Sick leave for the Mayor shall accrue at the rate of 8 hours per month, for a maximum total accrual of 960 sick leave hours. b. Payment for unused accrued sick leave hours. (i) By December 31 of each calendar year, the Mayor shall have the option to receive payment (at then current salary rate) for 25% of any sick leave hours accrued during Page 105 of 108 IMANAGE\370702\0001\10667859.v1-5/3/23 that year that exceed the 960 hour maximum. Payment shall be made by January 31 the following calendar year. (ii) The Mayor shall be entitled to receive payment (at then current salary) for unused accrued sick leave hours up to the maximum cap of 960 hours at the conclusion of service as Mayor. Such payment shall be made according to the following schedule, based on years served as the City Mayor: Years of City Mayor service: % of accrued sick leave hours to be paid: 0-4 0% of accrued hours 5-14 25% of accrued hours 15-24 50% of accrued hours 25+ 100% of accrued hours 3. Other leave and benefits. The Mayor shall be entitled to receive other forms of leave or benefits required by law or generally available to other City employees. The use and management of such other leave or benefits shall be in accordance with applicable law and City policies and procedures. Page 106 of 108 EXHIBIT B—ORD. 6907-B ACC 2.63.120 Vacations - Accumulation Vacations of employees shall not ordinarily be accumulative, except where the department head finds that there are special circumstances justifying an extended vacation, they may authorize the employee to accumulate up to five days or two duty shifts for fire department employees of unused vacation leave each year for the purpose of extending the employee’s annual vacation period in the year following, but in no event shall an employee not subject to a collective bargaining agreement accumulate more than that which would be earned in two years at the employee’s accrual rate. Any vacation leave accumulated in excess of this amount shall be automatically removed from the employee’s vacation balance by the finance department. Due to the demands of the office and the responsibilities pertaining thereto, the mayor of the city shall not be subject to the aforementioned provision and shall be authorized to accumulate unlimited annual leave at their discretion. In the event that a collective bargaining agreement is silent on the issue of vacation accumulation, then accumulation shall be limited to a maximum of one year annual vacation leave plus five days additional unused and accrued vacation leave carried over from a previous year or two duty shifts for fire department employees working shift work. ACC 2.63.160 Sick leave - Employees hired before January 1, 1985. This section applies only to City employees hired before January 1, 1985. A. All full-time employees of the city, except those covered by a union agreement, shall be entitled to sick leave when they are incapacitated for the performance of their duties by reason of sickness or injury or when, through exposure to contagious disease, the presence of the employee would jeopardize the health of others. Such sick leave shall be at the rate of eight hours for each calendar month of employment and if not used shall accumulate to a maximum of 960 hours, exclusive of the ordinary vacation time of the employee. B. Sickness shall be reported at the beginning of any period of illness to the department as soon as practically possible. C. A doctor’s certificate will be furnished at the discretion of the department head or personnel director whenever an employee claims sick leave for the protection of the employee and fellow employees. Page 107 of 108 D. Part-time employees shall not be entitled to sick leave unless approved by the mayor. E. An employee shall be allowed up to three days’ sick leave for illness in the immediate family that requires their presence, upon the approval o f the department head. Immediate family includes under this caption only father, mother, spouse or children of the employee. F. Any employee found to have abused the sick leave privilege by falsification or misrepresentation may be subject to dismissal at the discretion of the mayor. G. In the case of injury or illness which is covered by industrial insurance, an amount of sick leave may be used to pay the difference between industrial insurance, workman’s compensation and the employee’s regular rate of pay and no combination of payments received added to sick leave will exceed the regular rate of pay. H. No portion of this article regarding sick leave shall conflict with or cancel rules and regulations set by the civil service commission as it pertains to the fire and police department. I. Upon termination shall be reimbursed at the 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: Upon Completion of Years of Service Percent of Accrued Unused Sick Leave 0 through 4 years 0% 5 through 14 years 25% 15 through 24 years 50% 25 years and over 100% This section shall not apply to employees hired on or after January 1, 1985; provided, however, due to the demands of the office and the responsibilities pertaining thereto, the mayor of the city shall be authorized to receive payment for 100 percent of accrued unused sick leave upon leaving office. Page 108 of 108