Remote Workshop Meeting
AGENDA
PASCO CITY COUNCIL
7:15 p.m. May 11, 2020
Page
1. REMOTE WORKSHOP INSTRUCTIONS:
(a) To attend the Pasco City Council Workshop in "listen only" mode register at GoToWebinar. After registering, you will receive a confirmation email containing information about joining the webinar. Call-in information for "listen-only" mode is:
(213) 929-4232 Access Code: 554-263-915 2. CALL TO ORDER:
3. ROLL CALL:
4. VERBAL REPORTS FROM COUNCILMEMBERS:
5. ITEMS FOR DISCUSSION:
3 - 5 (a) Interview for Joint Housing Authority Board, Position No. 4
6 - 51 (b) 2020 Washington State Legislative Session Wrap Up
52 - 56 (c) Comprehensive Plan Environmental Impact Statement (EIS) Update
57 - 58 (d) Administrative and Community Services - Reorganization
59 - 67 (e) Professional Services Agreement - PACE Engineering, PWRF Facility Plan and IPS - Amendment No. 6
68 - 75 (f) Professional Services Agreement - PACE Engineering, Columbia East Force Main & Pump Station - Amendment No. 4
6. MISCELLANEOUS COUNCIL DISCUSSION:
7. EXECUTIVE SESSION:
Remote Workshop Meeting May 11, 2020
(a)
REMINDERS:
• Thursday, MAY 14, 7:00 PM: Ben Franklin Transit Board Meeting – Virtual Meeting via ZOOM (COUNCILMEMBER RUBEN ALVARADO, Rep.; COUNCILMEMBER ZAHRA ROACH, Alt.)
• Friday, MAY 15, 11:30 PM: Benton-Franklin Council of Governments Board Meeting – Virtual Meeting (COUNCILMEMBER RUBEN ALVARADO, Rep., MAYOR PRO TEM BLANCHE BARAJAS, Alt.)
This meeting is broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive.
Audio equipment available for the hearing impaired; contact the Clerk for assistance.
Servicio de intérprete puede estar disponible con aviso. Por favor avisa la Secretaria Municipal dos días antes para garantizar la disponibilidad. (Spanish language interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability.)
AGENDA REPORT
FOR: City Council May 6, 2020
TO: Dave Zabell, City Manager
Zach Ratkai, Administrative & Community Services Director
Remote Workshop Meeting: 5/11/20
FROM: Debby Barham, City Clerk
Administrative & Community Services
SUBJECT: Interview for Joint Housing Authority Board, Position No. 4
I. REFERENCE(S):
Resolution No. 3388 - Appointments to City Boards and Commissions Application (1) (Council only)
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Council to conduct a brief interview with Gregory Garcia. III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
The Housing Authority is a separate municipal corporation governed by its appointed board of directors. The Authority's basic mission is to provide safe and habitable housing for households with incomes below 80% of the regional medium household income. In the case of the Pasco Housing Authority, it owns and operates about 300 housing units in Pasco and offers other housing opportunities as other federal programs are made available and deemed appropriate by the Board.
A Joint Housing Authority Board for the City of Pasco and Franklin County was formed in 1981 by joint Resolution. The Housing Authority Board is comprised of five Commissioners who are appointed for a term of office of five years. The Commissioners for Position Nos. 1 and 3 are selected by the Franklin County Commissioners subject to confirmation by the Pasco City Council, and must be residents of Franklin County. Likewise, the Commissioners for Position Nos. 2, 4 and 5 are selected by the Pasco City Council and subject to confirmation by the Franklin
County Commission, and must reside within the City.
Position No. 4 term expired on January 28, 2020, which is currently held by Gregory Garcia.
V. DISCUSSION:
Recruitment for the Board commenced in late 2019 and closed in February 2020. A Council screening committee subsequently reviewed six (6) applications and selected Gregory Garcia, the Joint Housing Authority Board incumbent, to be interviewed by the full Council. Mr. Garcia has served on the Board for two consecutive terms and per Resolution No. 3388, is required to be interviewed at this time.
Due to the onset of the COVID-19 pandemic, the interview/appointment process for the City's Boards and Commissions was placed on hold; however, it is proposed that since the Council is interviewing only one candidate for the position and the candidate is the incumbent, the interview could be conducted virtually.
Mayor Martinez is recommending reappointment of Mr. Garcia to Position No. 4, subject to Council's confirmation at the May 18, 2020 meeting.
RESOLUTION NO. `
A RESOLUTION Providing a Process for Appointments to City Boards and
Commissions.
WHEREAS, the City of Pasco maintains several citizen advisory boards to assist the delivery of municipal services as well as to advise the City Council in making various policy decisions; and
WHEREAS, the appointment process prescribed by the Pasco Municipal Code requires the Mayor
to appoint citizens to vacancies on such boards, subject to confirmation of the City Council; and
WHEREAS, the Mayor and City Council desire to establish an appointment process which is more collaborative yet efficient for both the applicants and City Council alike; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DOES RESOLVES AS FOLLOWS:
Section 1: Applications for city boards and commissions shall be solicited annually by the City
Manager on behalf of the City Council.
Section 2: All applications received by the City Manager shall be reviewed by a City Council
committee appointed by the Mayor; such committee, to be known as the " Appointment Screening
Committee," shall be ad- hoc, appointed annually, and consist of three members, including the Mayor. The
Appointment Screening Committee shall select those applicants it deems best suited for the respective
board/ commission but not more than three applicants for each vacancy to be filled. The Appointment
Screening Committee shall consider the following factors in making their selections for further
consideration:
a) Geographic representation; b) Gender representation;
c) Ethnic representation;
d) Familial and financial relationships of board members
Section 3: Those applicants selected by the Appointment Screening Committee shall be
interviewed by the City Council during a public meeting; provided, however, the Screening Committee may
recommend reappointment of an incumbent applicant without interview by the City Council if the incumbent
has •-- • - - -• served not more than two consecutive•
terms since the last interview. At a City Council meeting following such interview, an interviewed candidate shall be selected by the Mayor for appointment to each vacancy. Any candidate selected by the Mayor shall
be subject to confirmation vote of the City Council; a majority vote of the quorum present at such meeting
shall be required to confirm the Mayor' s appointments.
Section 4: Any prior resolutions of the City Council in conflict with the provisions of this
resolution shall be superseded by this resolution.
PAS D by the City Council ity ofPasco at its regular meeting this 16th
day of April, 2012.
Matt Watkins, Mayor T T:
f
APP' S AS TO FORM:AGENDA REPORT
FOR: City Council May 5, 2020
TO: Dave Zabell, City Manager Remote Workshop Meeting: 5/11/20 FROM: Dave Zabell, City Manager
Executive
SUBJECT: 2020 Washington State Legislative Session Wrap Up
I. REFERENCE(S):
Presentation by Briahna Murray, Vice President, Gordon Thomas Honeywell Governmental Affairs
Overview of the 2020 Legislative Session
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
The 2020 legislative session adjourned March 12, 2020. This is the second year of the biennial cycle where the legislature is tasked with implementing supplemental budgets during a short 60-day session. Worth noting is that all bills introduced in the 2019 legislative session were automatically reintroduced in 2020 session.
Gordon Thomas Honeywell Governmental Affairs (GTHGA) has been contracted to assist in developing and promoting the Council's legislative priorities to the legislature. GTHGA assists the City in Olympia by providing an on-the-ground presence in Olympia during session, monitoring the legislature throughout the year, and advancing the City's legislative agenda.
The City has benefited by maintaining a proactive posture with the legislature regarding the interests of Pasco. One means by which Council has made its concerns and interests known to the legislature, and specifically its legislative delegation, is through the adoption of its City Legislative Priorities Statement.
The City achieved some significant successes during the 2020 session. The attached legislative report provides further detail.
GTHGA, Vice President, Briahna Murray will present Council with a wrap up of session and discussion of issues on the horizon.
BRIAHNA MURRAY
GORDON THOMAS HONEYWELL GOVERNMENTAL AFFAIRS
CITY OF PASCO
2020 LEGISLATIVE SESSION
PURPOSE
Overview of the 2020 Legislative Session
Outcome of 2020 Pasco State Legislative Priorities
Next steps
OVERVIEW OF 2020 LEGISLATIVE SESSION
Second year of the two-year legislative biennium
“Short” Session: lasted 60 days
Democrats held majority in both House of Representatives and Senate
Focused on adopting supplemental operating, capital, and transportation budgets
2019 legislation “carried over” to 2020 and was still under consideration
Total of 3,773 bills considered, 386 passed the Legislature
Governor vetoed several budget sections and bills in response to COVID-19
Special session to respond to COVID-19 likely
OVERVIEW OF 2020 LEGISLATIVE SESSION
2020 SUPPLEMENTAL OPERATING BUDGET SUMMARY
The state operating budget funds all state agency operations
State fiscal year runs July 1, 2019 - June 30, 2021
The supplemental operating budget amends the budget adopted in 2019
The final supplemental operating budget signed by the Governor authorized $726
million in new expenditures and left $3 billion in reserves
•
Governor vetoed $235 million in expenditures approved by the Legislature
Next revenue forecast: June 2020
OVERVIEW OF 2020 LEGISLATIVE SESSION
2020 SUPPLEMENTAL CAPITAL BUDGET SUMMARY
The state capital budget funds public and nonprofit construction projects (excluding
transportation) throughout the state
The supplemental capital budget amends the budget adopted in 2019
Total supplemental capital budget: $89.9 million
•
Average project appropriation: $215,000
OVERVIEW OF 2020 LEGISLATIVE SESSION
2020 SUPPLEMENTAL TRANSPORTATION BUDGET SUMMARY
The supplemental transportation budget amends the budget adopted in 2019
I-976 caused a $453 million revenue shortfall in the 2019-21 Transportation Budget
Prior to session, Governor paused projects to give the Legislature flexibility on how
to resolve the revenue shortfall
The supplemental transportation budget approved by the Legislature allowed all
paused project to proceed forward on schedule
Pushed out delayed projects and removed canceled projects to balance the 2019-21
budget - this created a long-term revenue shortfall with future years of Connecting
Washington no longer balanced.
OVERVIEW OF 2020 LEGISLATIVE SESSION
DEVELOPMENT OF TRANSPORTATION REVENUE PACKAGE
The revenue shortfall caused by I-976 creates increased pressure to develop a
package. There was some progress this session:
•
In the Senate, a draft transportation package/project list was shared in 2019; it was revised
and shared a second time in 2020
•
In the House, a proposal was introduced in 2020 to incrementally increase the gas tax by
9.7 cents over 10 years to fund state-owned culverts. Additionally, project applications
were accepted to begin developing a project list
Dozens of legislators signed a letter indicating that the Legislature would need to
adopt a low carbon fuel standard before they would be willing to vote in favor of any
transportation revenue package
OUTCOME OF PASCO 2020 STATE LEGISLATIVE PRIORITIES
Lewis Street Overpass Project -
Success
Process Water Reuse Facility Improvements -
Progress
Downtown Pasco Revitalization -
Success
Economic Development Tools -
Failed
Defend Local Control -
Success
In addition to the City’s legislative agenda,
the City reviewed dozens of additional proposals and expressed a position
LEGISLATIVE REQUEST: LEWIS STREET OVERPASS
City received $15 million in Connecting Washington Funds
•
$1.251 million used for design; $13.749 million remaining for construction
•
City directed to secure grants for remaining funds
•
Freight Mobility Strategic Investment Board (FMSIB) awarded a $4.4 million grant
Governor “paused” all projects after I-976 passed, including Lewis Street Overpass
Legislative request for 2020:
•
Approve the $4.4 million FMSIB grant
•
“Un-pause” remaining $13.749 million allocated in Connecting Washington
Advocacy effort:
•
Testified in both House and Senate Transportation Committees
•
Met with Chairman Jake Fey, House Transportation Committee
•
Engaged legislative delegation, plus Rep. Matt Boehnke (R-Kennewick, 8
th
LD)
Legislature “un-paused” $13.749 million in Connecting Washington funds
$4.4 million allocated to project; not through FMSIB
LEGISLATIVE OUTCOME: LEWIS STREET OVERPASS
LEGISLATIVE REQUEST: PROCESS WATER REUSE FACILITY
Improvements to expand existing process water reuse facility
•
Total cost: $43 million over 4 years
•
Public/private partnership
Legislative agenda: city requests that the state contribution $5 million
Long-term multi-year funding request
Revised to request $500,000 for design due to limited funding availability
Advocacy effort:
•
Completed relevant funding request forms and developed request documents
•
Met with 9
th
district legislators before session began
•
Met with 9
th
district legislators during session
Feedback: limited funding available in 2020
Focus on requesting funds in 2021
LEGISLATIVE OUTCOME: PROCESS WATER REUSE FACILITY
LEGISLATIVE REQUEST: DOWNTOWN REVITALIZATION
Requested funding for wider sidewalks, pedestrian-friendly access, plazas, and
gathering places to revitalize downtown Pasco
Legislative agenda: city requests $2 million
Long-term multi-year funding request
Builds on previous efforts to secure funding for Peanuts Plaza
LEGISLATIVE OUTCOME: DOWNTOWN REVITALIZATION
Advocacy Effort
•
Met with 16
th
District Legislators before session
•
Met with 16
th
District Legislators during session
•
Rep. Skyler Rude championed, with support from Sen. Walsh & Rep. Jinkin
House proposed supplemental capital budget: $400,000
$50,000 was needed to complete an emergency levee project in Starbuck
Final supplemental capital budget: $350,000
LEGISLATIVE REQUEST: ECONOMIC DEVELOPMENT TOOLS
Local Revitalization Funding (LRF)
•
Multi-year credit against the state sales tax (e.g. $500,000 for 20 years) to fund infrastructure that,
in turn, spurs private development
Tax Increment Financing (TIF)
•
Allowed in most other states
•
Revenue generated from future economic development can be spent on infrastructure (e.g. future
property tax revenues from a project are used to fund a sewer line for the project)
•
Requires amendment to the state constitution
.09 Sales Tax Credit for Economic Development
•
Rural counties currently receive a .09 sales tax credit for economic development
•
Credit will expire soon
LEGISLATIVE OUTCOME: ECONOMIC DEVELOPMENT TOOLS
HB 2804: Local Revitalization Financing (LRF)
•
$15 million in LRF awards; awards capped at $1 million/year for 20 years
•
Passed out of the House 94-3
•
Died in Senate Ways & Means Committee
HB 2778 & HJR 4212: Tax Increment Financing (TIF)
•
Public hearing in the House Finance Committee, but did not advance
HB 2494 & SB 5899: .09 Sales Tax Credit for Economic Development
•
Passed the House Finance Committee
•
Died before being approved by the entire House of Representatives
Local Control
•
Several proposals introduced that would have preempted local decision making on land use
•
Through strong advocacy from cities, most proposals did not pass
•
SB 6177 is the only bill that passed removing local control:
Removes the ability for cities to require on-site parking for accessory dwelling units (ADUs) within ¼
mile of a major transit stop receiving service at least every 15 minutes
Cities may implement off-street parking requirements for ADUs in areas that lack access to street
parking capacity, physical space impediments, or other parking infeasibilities
Cities are also exempt from this requirement if they have amended or adopted ADU regulations
within the last 4 years
LEGISLATIVE OUTCOME: LOCAL CONTROL
LEGISLATIVE ACTION: SUPPORT/OPPOSE ISSUES
State-shared Revenues
•
Fully funded, for now
Public Records Act
•
HB 1888 passed, exempting year of birth, photographs, and payroll deduction information of public
employees and volunteers held in personnel files from public disclosure requirements, but permits the
news media to have access to full dates of birth and photographs
Local Transportation Funding
•
Public hearings held on HB 2362 & SB 6652
•
Councilmanic sales tax, utility tax, and fuel tax authority for local transportation needs
LEGISLATIVE ACTION: SUPPORT/OPPOSE ISSUES, CONT.
Affordable Housing
•
HB 1590 passed, authorizing counties to councilmanically increase the sales tax .01 of 1% for
affordable housing. Cities get the authority on September 30, 2020 if the county has not imposed
•
$160 million in state funding allocated to housing and homelessness programs
Basic Law Enforcement Academy
•
Two additional Basic Law Enforcement Academy courses funded, increasing the total number of
courses from 19 to 21 per fiscal year
Annexation of Unincorporated Islands
•
SB 5522 passed, authorizing code cities to annex pursuant to an interlocal agreement between the
city and county.
NEXT STEPS
Special session likely
Next state revenue forecast: June
November 2020: All of the House of Representatives & approximately half the Senate
are up for re-election
Legislature meets for pre-session committee days in September & December
2021 Legislative Session Begins: January 11, 2021
QUESTIONS?
Briahna Murray
Vice President
Cell: (253) 310-5477
E-mail:
bmurray@gth-gov.com
Josh Weiss
Vice President
Cell: (360) 561-3560
E-mail:
jweiss@gth-gov.com
Shelly Helder
Senior Consultant
Cell: (360) 209-3339
E-mail:
shelder@gth-gov.com
Holly Cocci
Assistant Consultant
Cell: (253) 509-2403
E-mail:
hcocci@gth-gov.com
Page 28 of 751201 Pacific Ave, Suite 2100 203 Maryland Ave., NE
Tacoma, WA 98401 www.gth-gov.com Washington, DC 20002
Phone: (253) 620-6500 Phone: (202) 544-2681
Fax: (253) 620-6565 Fax: (202) 544-5763
City of Pasco
State Government Relations Report
2020 Legislative Session
Dear Mayor & City Council,
It was a pleasure to advocate for the City of Pasco throughout the 2020 legislative session. After months of hard work by myself and city staff, I am pleased to share that the City was successful in advancing its legislative priorities. Our biggest successes included ensuring that the Lewis Street Overpass project and associated funding was authorized to proceed forward on-schedule and securing $350,000 for downtown revitalization.
These successes would not have been possible without an active and supportive legislative delegation: Sen. Mark Schoesler, Sen. Maureen Walsh, Rep. Mary Dye, Rep. Joe Schmick, Rep. Skyler Rude, and Rep. Bill Jenkin. Sen. Maureen Walsh announced her retirement earlier this year – she has been a strong advocate for Pasco and her many years of service deserve recognition. Additionally, this year, the City also reached out to the 8th district legislators for assistance in
advancing the City’s priorities – Sen. Sharon Brown, Rep. Brad Klippert, and Rep. Matt Boehnke.
Now that session is officially over, attention has turned to responding to the COVID-19 pandemic. There is much advocacy to do to ensure that state and city government have the resources needed to continue to effectively respond to the pandemic and manage the resulting forthcoming decline in revenue collections. As you’ll read in the attached report, it is likely that the Legislature will convene in a special session – the City’s advocacy will steadfastly continue into that special session.
The attached report provides you with the following:
1) An Overview of the 2020 Legislative Session 2) Outcome of Pasco’s 2020 Legislative Priorities 3) Outcome of Pasco’s Support/Oppose Items 4) Information on AWC’s legislative efforts 5) Bill Tracking
Thank you for the opportunity to be your advocate. As always, if there are any questions, concerns, or thoughts, please feel free to contact me or city staff.
Briahna Murray
Vice President
Gordon Thomas Honeywell Government Affairs
Gordon Thomas Honeywell Governmental Affairs End of Session Report
2
Overview of the 2020 Legislative Session
The 2020 legislative session was the second year of the two-year legislative biennium and was scheduled to be a “short” legislative session lasting sixty days. The primary task of the Legislature in a short session is to develop the supplemental, operating, capital, and transportation budgets, which amend the biennial budgets adopted during the first year of the legislative biennium.
The 2020 Legislature adopted supplemental budgets, approved 386 bills, and still managed to
adjourn within the scheduled sixty days at 8:15PM on the 60th and final day of the legislative session.
The Legislature adjourned just as the COVID-19 pandemic was beginning to ramp up, and before the Governor’s Stay Home, Stay Healthy Order was issued. While the Legislature has finished its
required work for now, there are already rumors that a special session may be needed later this year to make further changes to the budget in response to the COVID-19 pandemic.
Throughout the 2020 legislative session, Democrats continued to hold the majority in both the House of Representatives and the State Senate. The House of Representatives was comprised of 57
Democrats and 41 Republicans and the State Senate was comprised of 27 Democrats and 22 Republicans. These majorities will remain in place throughout any special session(s) until December 31, 2019.
Going into the 2020 session, legislative leadership cautioned that the session would truly be a “short” session and only address issues that are time pressing and supplemental in nature. This did not, however, prevent legislators from introducing a record number of legislative proposals for
consideration. Bills introduced in 2019 that did not pass into law continued to be under consideration in 2020. These bills, combined with those introduced in 2020, made for a total of 3,773 bills under consideration during the 2020 legislative session. The Legislature passed 386 of these bills – some of which the Governor later vetoed.
One of the biggest challenges the Legislature faced this session was how best to respond to Initiative-976. Voters approved Initiative-976 in November 2019, reducing car tab fees to $30 and causing a $453 million revenue shortfall in the 2019-21 transportation budget. Prior to the beginning of the legislative session, the Governor paused most transportation contracts that were not yet underway in order to provide the Legislature with flexibility in identifying on how best to address the revenue shortfall. To complicate the issue, throughout the legislative session legal challenges to the Initiative languished in the court system remaining unresolved. The 2020 Legislature chose to assume that the Initiative would be upheld and adopted a supplemental transportation budget that addressed the $453 million revenue shortfall and allowed most projects to proceed forward as scheduled.
Below is a summary of each of the supplemental budgets adopted by the Legislature, including a highlight of those provisions that the Governor subsequently vetoed once it became clear that state revenues would decline significantly as a result of the COVID-19 pandemic.
2020 Supplemental Operating Budget
The 2020 supplemental operating budget adopted by the Legislature was smaller than originally anticipated. The February revenue forecast estimated that there would be $1.5 billion in additional
Gordon Thomas Honeywell Governmental Affairs End of Session Report
3
revenue for the 2019-21 biennium. Both the House and the Senate developed supplemental budget proposals that spent just over $1 billion. However, in the final days of the legislative session budget writers reduced the budget from early proposals to proactively prepare for a decline in revenues stemming from the COVID-19 epidemic. The supplemental budget approved by the Legislature included $961 million in new spending. The Governor vetoed $235 million of this new spending, to reduce the total amount of new spending in the final 2020 supplemental budget to $726 million. The operating budget totals $53.3 billion over the 2019-21 biennium, with $3 billion in reserves.
The Legislature may be called into a special session to make further budget and policy changes in response to the COVID-19 pandemic. State revenues are expected to decline $3-4 billion for the 2019-21 biennium. Local government budgets will also need to be revisited to reflect a significant decline in revenue as sales tax and other revenue collections decline and as utility tax and property tax collections are delayed. As the Legislature explores ways to rebalance the state’s budget, local governments will need to advocate to prevent reductions from state-shared revenues.
Below are those items in the supplemental operating budget important to local government, including highlights of which items the Governor vetoed:
o $200 million to fund public health activities to manage and mitigate the impact of the COVID-19 pandemic.
o $160 million for housing and homelessness. This includes increased funding for shelter capacity, construction of affordable housing, housing and essential needs, and permanent supportive housing.
o A one-time 3% increase for PERS 1 retirees; for local governments that have PERS 1 retirees, this will result in a cost increase at the local level. While the supplemental operating budget provides resources for its own costs, it does not provide additional resources for local governments.
o Two additional Basic Law Enforcement Academy classes are funded each fiscal year, increasing the number of classes from 19 to 21 per year. 3 classes will be held at the Spokane training center.
o Resources are provided for the Department of Fish and Wildlife to map and identify fish blocking culverts.
o A study is funded to develop a statewide medication assisted treatment program in jails. o A study is funded to identify how to incorporate a “net ecological gain” standard into the Growth
Management Act and Shoreline Management Act.
The Governor vetoed the following provisions relevant to local governments:
o $250,000 to fund a joint legislative task force to develop a business plan for a publicly owned depository/state bank.
o $350,000 to fund a work group to make recommendations on changes to the Growth Management Act in light of the recent report released by the Ruckelshaus Center.
o $10 million of additional funding for the Local Solid Waste Financial Assistance Program.
o $75,000 to develop a strategy for future investments in outdoor recreation with a report due November 30, 2020.
Gordon Thomas Honeywell Governmental Affairs End of Session Report
4
The 2019-21 biennial capital budget appropriated roughly $3.18 billion and left $70 million for the 2020 supplemental budget. An additional $19.8 million was realized by adjusting various accounts within the budget, which allowed for a total supplemental capital budget of $89.9 million. Some highlights of significant investments include:
$7.8 million for projects that enhance shelter capacity around the state.
$5 million for a new competitive grant program for community and cottage housing.
$1 million for preservation of manufactured and mobile home communities.
$10 million for the Community Economic Revitalization Board for projects that construct, repair, and acquire local public facilities to encourage business development and expansion in areas seeking economic growth.
The $95 million that was previously allocated to the Public Works Assistance Account was maintained, but there was no change made to the ongoing diversions from the Account to the Education Legacy Account.
$33.7 million for the Model Toxic Control Account for cleanup projects by local governments.
Although no additional funding is allocated toward fish barrier removal in the capital budget, the Fish Barrier Removal Board is directed to develop a comprehensive statewide culvert remediation plan that fully satisfies the requirements of the injunction. The plan will include recommendations for nonstate barrier corrections that maximize fish habitat gain and other benefits that will assist in salmon recovery. The plan is due to the Legislature by January 15, 2021.
The Governor signed the supplemental capital budget approved by the Legislature in full.
2020 Supplemental Transportation Budget
The final supplemental transportation budget assumes that Initiative 976 will ultimately be upheld by the Court, resulting in a $453 million loss of transportation revenue in the 2019-21 biennium. The supplemental budget authorized all project contracts that were put on "pause" prior to the beginning of the legislative session to proceed forward on schedule. To make up for the funding gap, the supplemental budget delays or reduces rail capital projects into the 21-23 biennium, delays WSDOT Public Transportation Program grants in the 21-23 biennium, makes project reductions based on updated information from WSDOT and incorporates savings from other cancelled or closed out projects. All of these are short-term strategies; several transportation accounts have negative ending fund balances in the next biennium. Altogether, there is a $600 million shortfall for the 21-23
biennium.
The supplemental budget adds spending authority for agency needs that concern safety, security and support. Some of these investments include:
$6.0 million to the State Ferries System at WSDOT for training, inspections, and naval architecture support.
$2.3 million to the State Patrol to address backlogs of impaired driving case submissions at the state toxicology lab.
$13 million to WSDOT for the transition to a new back office system and customer service center for the Tolling Program.
There are a few adjustments within the final budget that both positively and negatively affect local governments:
$275 million for state-owned fish passage barrier correction, retaining proviso language to
Gordon Thomas Honeywell Governmental Affairs End of Session Report
5
to consider factors while complying with injunction, including presence of other barriers and directs WSDOT and the Fish Barrier Removal Board to develop a statewide comprehensive plan.
The Safe Routes to School grant program received a $7.3 million increase for a total of $36.5 million over the biennium and the Bicycle and Pedestrian safety grant program received an increase of $13.3 million for a total of $38.3 million over the course of the biennium.
A $10 million reduction in gas tax distribution to local governments (as a result of declining revenues).
The Governor made minor line-item vetoes to the supplemental transportation budget approved by the Legislature.
Development of Transportation Revenue Package
Both the House and Senate Transportation Committee Chairs have indicated that additional transportation revenue is needed to balance the out-years of the transportation budget.
Senate Transportation Committee Chair, Sen. Steve Hobbs (D-Lake Stevens) developed a
transportation revenue package proposal in 2019 and refined that proposal during the 2020 legislative session. The updated version of the proposal released during the legislative session.
The updated proposal included two options for the state to generate funding for transportation: 1) a carbon fee of $10 per metric ton for utilities and $15 per metric ton for other entities, or 2) a cap and invest system which limits greenhouse gas targets and utilizes resulting revenue for transportation purposes. In addition to one of these options, the proposal included a 6-cent gas tax increase, an assessment on new construction (similar to an impact fee), a fee on for-hire vehicles (including Uber, Lyft, etc.), an automobile parts sales tax, rental car tax, a sales and use tax on bicycles, and several additional increases in existing fees. The proposal would generate $15 billion in new revenue which, once bonded, would make $18-19 billion available for transportation investments throughout the state. The proposal also included a breakdown of how the revenue would be spent, including a draft project list. The proposal did not advance in the 2020 legislative session but will serve as a framework for future discussions.
The House of Representatives has not yet developed its version of the next transportation revenue package. However, House Transportation Committee Chair Rep. Jake Fey (D-Tacoma) introduced
House Bill 2913, which would have raised the gas tax by 9.7 cents over the next 9 years to fund fish
passage barrier removal. The first year would increase 0.7 cent per gallon and each following year would increase by an additional 1 cent until 2029. It is estimated this would generate $3.9 billion. Under the proposal, the revenue generated would only go toward state fish passage barriers. There was a public hearing on the bill, but it did not advance. Chairman Fey introduced the bill to
demonstrate the size of the culvert problem and the need for substantial new revenue to address state owned culverts in the injunction area and culverts up/down stream.
Additionally, dozens of legislators signed a letter indicating that the Legislature would need to adopt a low carbon fuel standard before they would be willing to vote on any transportation revenue package. The Legislature considered a low carbon fuel standard through House Bill 1110, sponsored by
Representative Joe Fitzgibbon (D-Burien). The bill was originally introduced in the 2019 session and it passed the House 53-43 but died in the Senate. This session the bill passed the House again 52-44 and was referred to the Senate Transportation committee where there was a lengthy public hearing
Gordon Thomas Honeywell Governmental Affairs End of Session Report
6
with equal representation from supporters and those opposed. However, the bill was not voted out of the Senate Transportation Committee and died. One of the primary concerns with the policy is the expectation that it will increase gas prices and not result in additional tax revenue for the state to make investments in the transportation system, which is the largest contributor of greenhouse gases. In particular, the Senate Transportation Chair is more interested in a carbon pricing policy that will reduce carbon emissions and create a revenue stream for transportation needs such as fish barrier replacement and stormwater management.
2020 November Elections on the Horizon
Now that the 2020 Legislature has concluded its work, attention will begin to shift to the 2020 November elections. All members of the House of Representatives and approximately half the members of the State Senate will need to seek re-election to maintain their position. Several members have announced that they will not seek re-election (listed below). These positions will be filled by new legislators. Official filing week is May 11-15, during this week candidates will formally announce whether they are running.
- Representative Sherry Appleton (D-Poulsbo)
- Representative Eric Pettigrew (D-Seattle)
- Representative Christine Kilduff (D-Tacoma)
- Representative Pat Sullivan (D-Covington)
- Representative Gael Tarleton (D-Seattle) – running for Secretary of State
- Representative Mike Pelliciotti (D-Federal Way) – running for State Treasurer
- Representative Beth Doglio (D-Olympia) – running for 10th congressional district
- Representative Chris Gildon (R-Puyallup) – running for the Senate
- Representative Bill Jenkin (R-Prosser) – running for the Senate
- Representative Norma Smith (R-Langley)
- Representative Richard DeBolt (R-Chehalis)
- Representative Jared Mead (D-Mill Creek) – appointed to the Snohomish County Council
- Senator Maureen Walsh (R-Walla Walla)
- Senator Randi Becker (R-Enumclaw)
- Senator Hans Zeiger (R-Puyallup) – running for Pierce County Council position
- Lt. Governor Cyrus Habib
2021 Redistricting
The U.S. Census is currently underway and is scheduled to be completed by March 31, 2021. Once the census is completed, Washington State will begin the process of redistricting. Redistricting occurs every 10 years and is the process of adjusting the boundary lines of each legislative district to ensure that an equal number of people are in each district. Once the U.S. Census is complete, the
Redistricting Commission will be appointed. The commission has five members: two from each of the majority party caucuses (this year, two Democrats and two Republicans), and a partisan, non-voting Chair. Each House and Senate caucus leader appoints one non-voting member to the commission in January 2021.
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Lewis Street Overpass
The City of Pasco has worked with the legislative delegation for several years to secure funding for the Lewis Street Overpass project. In the 2015 Connecting Washington package, the Legislature appropriated $15 million for the project, and directed the city to look at grant and local funds for the remaining funding needed to complete the project then estimated to cost $30 million. Over the past five years, the City used $1.251 million of the $15 million appropriated to complete design work for the project and worked diligently to secure grant funding.
As part of the City’s efforts to secure grant funding, the City applied for and received a $4.4 million grant from the Freight Mobility Strategic Investment Board (FMSIB). However, for FMSIB to award the grant, the Legislature needed to approve the grant as part of the grant agency’s LEAP list. When the City developed its Legislative Agenda in early fall of 2020, the City’s top priority request was to request that the Legislature authorize this $4.4 million FMSIB grant.
In November 2020, voters approved I-976, causing a $453 million revenue shortfall in the 2019-21 Transportation Budget. The Governor responding by pausing projects to provide the Legislature with flexibility on identifying how best to address the revenue shortfall. One of the many projects put on pause was the $13.749 million for Lewis Street Overpass project. Ensuring that the project was “un-paused” and that the $13.749 million appropriated then also became a top legislative priority for the City.
Early in the legislative session, City Manager Dave Zabell traveled to Olympia and testified before both the House and Senate Transportation Committees indicating the importance of authorizing the Lewis Street Overpass project to proceed forward on-schedule. Much of Mr. Zabell’s testimony was captured by local media outlets, which provided further momentum and support for the City’s
advocacy efforts. In addition to testifying, the City met with Rep. Jake Fey (D-Tacoma), Chairman of the House Transportation Committee. Rep. Fey understood the importance of the project, but also expressed from concern that, in his opinion, FMSIB did not have a good track record of appropriately administering grant funds.
The City worked with its legislative delegation; however, no members of the City’s legislative
delegation serve on the House or Senate Transportation Committees. However, Rep. Matt Boehnke (R-Kennewick) in the neighboring 8th legislative district serves on the House Transportation
Committee. Ms. Murray and Mr. Zabell met with Rep. Boehnke prior to the beginning of the legislative session, as well as throughout the legislative session. As a member of the House Transportation Committee, he was helpful in advocating for Lewis Street Overpass.
When the House and Senate each released their proposed 2020 supplemental transportation
budgets, both proposals provided the necessary funding for Lewis Street Overpass; however, did so in slightly different ways:
The House budget proposal allocated $4.4 million on the LEAP ALL PROJECTS list under “Lewis Street Bridge” and allocated $13.749 million on the LEAP ALL PROJECTS list under “Lewis Street Overpass.” (i.e. rather than allocating the funds through FMSIB, the $4.4 million is allocated directly to the City)
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The Senate budget proposal allocated $4.4 million FMSIB LEAP LIST under “Lewis Street Overpass” and allocated $13.749 million on the LEAP ALL PROJECTS under “Lewis Street Overpass.”
The Mayor sent a formal letter to the House and Senate Transportation Committee Chairs, thanking them each for fully funding the project, and encouraging them to ensure that the final 2020
supplemental transportation fully fund the project through one approach or another. Ms. Murray followed up with the House and Senate Transportation Committee Chairs confirming their receipt of the letter.
The final 2020 Supplemental Transportation budget adopted by the Legislature and signed into law by the Governor included a combined appropriation of $18.149 million in state funds to the City of Pasco for the Lewis Street Overpass project; thereby authorizing the project to proceed forward on schedule.
This should be considered a great success, and the City should express thanks to the legislative delegation and the chairs of the House and Senate transportation committees. The City has also developed a strong working relationship with Rep. Matt Boehnke to assist in navigating the City’s future transportation needs.
Funding for Improvements to the Process Water Reuse Facility
Recognizing that the 2020 legislative session would be a “short” legislative session with limited funding opportunities, the City developed a funding request for improvements to the Process Water Reuse Facility expecting it to be a multi-year, long-term funding request. As such, the legislative agenda states that the City requests $5 million over the next two years to contribute to the public-private partnership.
Prior to the beginning of the legislative session, Ms. Murray and Mr. Zabell met with the 9th district legislators and discussed this funding request with them. They indicated that there would be limited funding opportunities, and to revise the request to make it smaller and reflect an initial phase of the project. Ms. Murray worked with city staff to revise the request to $500,000 for designing the project.
Early in the legislative session, we once again met with the 9th district legislators. They indicated that
funding was even more limited than initially understood. They offered to submit a funding request for $50,000. However, rather than submitting a request for that small amount, the City instead indicated that it would be best to work on a larger request for the 2021 legislative session.
Moving forward, the City will need to work with the 9th district legislators in the months leading up to
the 2021 legislative session.
Downtown Revitalization
To build on investments into the Lewis Street Overpass and Peanuts Plaza, the City requested $2 million to revitalize downtown Pasco to widen sidewalks for outdoor cafes, improve pedestrian-friendly access, and construct plazas and gathering places. The City did not anticipate receiving the full $2 million requested given the limited funding but was hopeful to receive funding for the initial phase.
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Mr. Zabell and Ms. Murray met with the 16th district legislators prior to the beginning of the legislative
session. Rep. Skyler Rude (R-Walla Walla) agreed to champion the request, with support from Sen. Maureen Walsh and Rep. Bill Jenkin. Rep. Rude submitted the funding request for $2 million to
House capital budget writers. As a result of his work with the budget writers, the project was allocated $400,000 in the House proposed capital budget.
After the House budget proposal was released, the 16th district legislators learned of the need to fund
an emergency levee project in Starbuck for $50,000. The only way to fund the project was to reduce the $400,000 appropriated to the Downtown Revitalization project to $350,000 and appropriate the $50,000 project to Starbuck. The 16th district legislators were appreciative of the City’s understanding
of the emergent need.
The final supplemental capital budget that was adopted by the Legislature and approved by the Governor included $350,000 for the Downtown Revitalization project. In future years, the City will need to identify specific project components for which to request funding.
Economic Development Tools
The City requested that the Legislature authorize economic development tools for cities to spur private development within their communities. This was also an Association of Washington Cities’ legislative priority. There were three different proposals considered this session. While none of them passed, they each advanced further this session than previous sessions. Below is a description of each proposal:
Local Revitalization Financing (LRF): House Bill 2804, sponsored by Rep. Davina Duerr
(D-Bothell) would have provided a competitive process for cities to receive Local Revitalization Financing awards. The awards are a credit against the state sales tax of up to $1 million/year for 20 years for the city to invest in infrastructure that is likely to spur economic development. The Local Revitalization Financing (LRF) program was originally authorized by the Legislature in the mid-2000s but has been remained unfunded since. Projects that were awarded in the mid-2000 have resulted in a significant increase in state and local tax collections,
demonstrating that these awards present a good return on investment for the state.
The bill was introduced early in session and had two public hearings in the House Local
Government and House Finance committees with panels of local government officials testifying to the value of such a tool. The bill did not make it out of the House prior to the House of Origin cutoff, but leadership indicated it was necessary to implement the budget (NTIB) and therefore not subject to cutoff. When the House operating budget was released, it referenced House Bill 2804 and the NTIB designation was confirmed.
In the final week of the legislative session, the bill was voted out of the House with near
unanimous support, 94-3. The Senate Ways & Means Committee held a public hearing on the bill. There were over two dozen other organizations signed in support of the bill and no one was opposed. The bill was scheduled to be voted out of committee the same day as the hearing, but the committee chose to not vote on the bill. In speaking with several members of the committee afterwards, it was shared that concern over a looming recession in response to
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the COVID-19 outbreak caused hesitation in supporting a proposal that would have committed the state to $15 million investment each year for the next 20 years.
When the bill passed the House, it did so after release of the strong economic revenue forecast. The day the bill was to be voted out of the Senate committee, the stock market plunged, and COVID-19 continued to spread in Washington, causing Senators to make fiscal decisions in light of a potential recession. Although the bill did not pass, significant progress was made, and momentum was built for a revisit to the policy in the 2021 session.
Tax Increment Financing (TIF): House Bill 2778 and House Joint Resolution 4212, both
sponsored by Rep. Pat Sullivan (D-Covington) would have authorized tax increment financing in Washington State – most other states already have tax increment financing. Article IX Section, 2 of the State Constitution requires that the state tax for common schools be applied exclusively to the support of the common schools. Previous Supreme Court rulings have found that tax increment financing is unconstitutional because it diverts property tax revenues from the common schools. For this very reason, introduction of House Bill 2778 was accompanied by HJR 4212 which would have amended the state constitution to allow for tax increment financing. Both proposals had favorable public hearings in the House Finance committee and were voted out of the committee only to die in the House Rules committee. If HJR 4212 had passed both chambers with a 2/3 majority, it would have to be approved by a majority of Washington voters. Although this is an ambitious objective, the Washington State Constitution has been amended 107 times, so it is not impossible. Over the interim months, Ms. Murray will continue working with the Association of Washington Cities and other cities to educate state legislators on the value and importance of tax increment financing for local economic
development. Unlike local revitalization financing (described above), tax increment financing does not require funding from the state budget.
.09 Credit Against the State Sales Tax for Counties: The City of Pasco joined other
counties, cities, ports, and other stakeholders in requesting that the .09 credit against the state sales tax for economic development be renewed. Franklin County currently receives funding under this program and appropriates it to many economic development efforts that benefit Pasco and the greater Tri-City community.
The statutory authority for this program is due to sunset in 2023. This was a statewide effort led by the Washington Economic Development Association (WEDA) and Greater Spokane Inc. (GSI), although GTH-GA remained engaged in on-the-ground lobbying and strategizing to advance the bill.
Sen. Mark Mullet (D- Issaquah) introduced legislation last year, Senate Bill 5899; however, efforts focused on House Bill 2494, sponsored by Rep. Monica Jurado Stonier (D- Vancouver). The bill received strong support from the House Finance Committee. However, once passing out of committee, the bill did not advance. Legislative opposition to the bill is largely based on budget writers’ reluctance to commit any portion of state sales tax revenues. This reluctance was already strong when the Legislature had $1.5 billion in new revenue and was
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Moving forward, the City of Pasco should work closely with other coalition partners through the interim to determine whether it will be fruitful to pursue this again in the 2021 session, and if so, what the appropriate legislative strategy will be.
Defend Local Control
Like the 2019 legislative session, several legislative proposals were introduced in 2020 that would have preempted the City’s authority to regulate land use. Fortunately, most of these bills did not pass into law, in large part due to a group of legislators in the House of Representatives referred to as the “Local Government Champions Caucus.” This group of legislators strongly opposed proposals that preempted local control, and instead encouraged the advancement of proposals that provided local governments with incentives or options on how best to accomplish public policy objectives.
Below are the bills that were discussed this legislative session, with those that passed into law listed first, and italicized:
Incentivizing Density: House Bill 2343, sponsored by Rep. Joe Fitzgibbon (D-Burien), expands options for actions cities may take to increase density. The bill is a “sequel” to House Bill 1923, which passed during the 2019 legislative session. House Bill 1923 provided cities with a menu of options to increase density or prompted cities to complete a housing action plan; this bill expands this list of options and adjusts parking requirements. The bill also extends SEPA and GMA appeals from April 1, 2021 to April 1, 2023. The bill was approved by the Legislature, has been signed into law by the Governor, and is effective June 11, 2020.
Regulation of Accessory Dwelling Units (ADUs): Senate Bill 6617, sponsored by Sen. Marko Liias (D-Lynnwood), removes the ability for cities to require on-site parking for accessory dwelling units within ¼ mile of a major transit stop receiving service at least every 15 minutes. Cities may implement off-street parking requirements for ADUs in areas that lack access to street parking capacity, physical space impediments, or other parking infeasibilities. Cities are also exempt from this requirement if they have amended or adopted ADU regulations within the last 4 years. New ADU requirements take effect July 1, 2021. Senate Bill 6617 began as a strict mandate around ADU regulations that was strongly opposed by cities. Cities opposed the bill throughout the session, and the version that passed is significantly narrower than any of the previous iterations. The bill passed the Legislature, has been signed into law by the Governor, and is effective June 11, 2020.
Preemption on Duplex, Triplex, etc. in Single-Family Neighborhoods:House Bill 2780
sponsored by Rep. Nicole Macri, (D-Seattle), and Senate Bill 6536, sponsored by Sen. Mona Das(D-Covington), would have mandated that most cities and counties fully-planning under the GMA eliminate single-family zoning within Urban Growth Areas (UGAs). The bill was opposed by cities and counties but supported by builders, Futurewise, and housing advocates. While stakeholder negotiations resulted in amendments to the bill that slightly narrowed the scope of the zoning mandates, the bill remained highly preemptive for most cities and fully-planning GMA counties. Ultimately local government opposition was enough to prevent both versions of the bill from passing into law, but only with concerted effort.
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Regulating Number of Unrelated Persons in a Home: Senate Bill 6302, sponsored by Sen. Christine Rolfes (D-Bainbridge Island), would have limited a cities' ability to regulate the number of unrelated persons in a home. The bill was introduced as an attempt to remove barriers to affordable housing options for individuals who would not be able to afford a housing unit on their own, which is a noble aim. However, the drafting of the bill would have prevented use of reasonable criteria such as septic system capacity to regulate the number of occupants in a home. Cities developed an amendment to retain the authority to regulate the number of people in a home based on square footage, but the bill was never brought up for a vote in the House and did not pass into law. Although this bill did not advance this session, it is likely to return in 2021.
Outcome of Pasco Support/Oppose Issues
In addition to the City’s top legislative priorities, the City identified several issues that it would also support/oppose throughout the legislative process. Additionally, the City reviews bills as they are introduced with city staff and takes positions in support or opposition of bills based on staff review. The outcome of those efforts are outlined below:
Finance/General Government:
State-Shared Revenues: The Legislature fully funded state-shared revenues for the 2019-21 legislative biennium. The City of Pasco receives approximately $1.3 million annually from these state accounts. The state is expected to experience a significant decline in state revenues due to the COVID-19 pandemic. This decline may force the state to make budget reductions, including reductions to state-shared revenues.
Property Tax Cap: House Bill 2145, sponsored by Rep. Gerry Pollet (D-Seattle), would have replaced the 1% cap on annual property tax levy increases with a cap based on population and inflation, not to exceed a 3% increase. This legislation has been requested by local
governments for several legislative sessions. As with efforts in previous years, the bill did not advance this legislative session. As a reminder, the state temporarily removed the 1% cap on the state’s annual property tax levy as part of the package to respond to McCleary.
Election of Judges: While this issue has been discussed several times in previous legislative sessions, there were no proposals introduced on this subject in 2020.
Labor Reform: The City of Pasco joins AWC and other local governments in opposing
legislation that increases labor costs. The Legislature did approve one proposal that increases labor costs and amounts to an “unfunded mandate” on cities:
o House Bill 1390, sponsored by Rep. Mari Leavitt (D-University Place), provides a
one-time 3% increase to the retirees in the Public Employees’ Retirement System and the Teachers’ Retirement System Plans 1. The increase is capped at $62.50 and will go into effect on July 1, 2020. For jurisdictions who have PERS 1 retirees, this will result in a cost increase at the local level. The state budget provided resources for its own costs but not for local governments. The bill passed both chambers unanimously, was signed into law by the Governor, and is effective July 1, 2020.
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Public Records Act (PRA) Reform: Pasco is committed to public records openness and transparency while also advancing reasonable reforms to the Public Records Act. This year, the Legislature approved House Bill 1888, sponsored by Rep. Zack Hudgins (D-Renton), which exempts month and year of birth, photographs, and payroll deduction information of public employees and volunteers held in personnel files from public disclosure requirements, but permits the news media to have access to full dates of birth and photographs. The bill was signed into law by the Governor and is effective June 11, 2020.
Infrastructure & Economic Development
Infrastructure Funding: Pasco supports funding tools for infrastructure and funding for the Public Works Assistance Account. The 2019 Legislature allocated $95 million to the account; the 2020 Legislature did not increase that funding.
Local Transportation Funding: Pasco supports the efforts of the Association of Washington Cities to advance legislation that would provide cities with more options to increase revenue to fund local transportation projects. The Association of Washington Cities (AWC) worked
with Rep. Bill Ramos (D-Issaquah) and Sen. Joe Nguyen (D-White Center) to develop the legislation.
This legislation was developed in response to the Joint Transportation Committee study that was released in mid-2019 and estimated the statewide city transportation funding need is $900 million per year. House Bill 2362, and Senate Bill 6652 would have authorized cities to
councilmanically:
o Increase the sales tax by up to .04 percent of 1%
o Impose an additional 2% utility tax (above the current 6% cap)
o Impose a local 2-cent fuel tax, with an additional 2 cents that can be voter-approved.
Both bills died prior to fiscal cutoff but the House and Senate held public hearings to begin the discussion of local options that could be included in the next transportation revenue package. The public hearings held this session laid the groundwork for these or similar proposals to advance in future legislative sessions or as part of a transportation revenue package.
Lower Snake River Dams: Pasco opposes the removal of dams along both the Columbia and Snake Rivers and encourages the State to perform additional analysis on the economic impact of any such proposals. In 2019, the Legislature allocated $750,000 for a neutral third party to establish a process for local, state, tribal, and federal leaders and stakeholders to address issues associated with the possible breaching or removal of the four lower Snake River dams in order to recover the Chinook salmon populations. That study is currently underway. There was no further legislative action in 2020 regarding the issue.
Affordable Housing: Affordable housing has been a hot topic discussed by the Legislature in recent years. For example, in 2019, the Legislature approved House Bill 1406 to provide cities with a credit against the state sales tax to fund affordable housing. The Legislature considered several legislative proposals:
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o Extend and Expand the Multi-Family Property Tax Exemption: Current law authorizes cities to grant multi-family developments an 8-year property tax exemption; or a 12-year tax exemption if 20% of the units are dedicated to low-income individuals. Each
jurisdiction has the authority to further tailor the tax exemption program to include additional income restrictions or identify specific areas of the city where the exemption is offered. Thus far, developers in Pasco have not taken advantage of this tool.
House Bill 2620, sponsored by Rep. Amy Walen (D-Kirkland) and Senate Bill 6411,
sponsored by Sen. Mona Das (D-Covington), would have authorized local jurisdictions to extend the exemption an additional twelve years for projects that have already been awarded the exemption (either the 8-year or the 12-year) if 20% of the units remained or, in the case of the 8-year became, income restricted. The bill would have also adjusted the population eligibility threshold, allowing cities under 15,000 to use the program. While a broad stakeholder group met several times to reconcile the
differences between these two proposals and find agreement, stakeholder discord and opposition from key stakeholders caused the bills to die prior to the chamber-of-origin cutoff deadline. Notably, labor interests expressed opposition to the bill unless any project offered the exemption be required to use prevailing wage.
Late in the legislative session, Rep. Nicole Macri (D-Seattle) introduced House Bill 2950. Because the bill was introduced after cutoff deadlines, it was deemed “not subject
to cutoff.” The bill established a formal stakeholder group to develop consensus around a proposal to expand and extend the use of the multi-family property tax exemption program prior to the beginning of the 2021 legislative session. The bill also extends any immediately expiring 12-year exemptions until the end of 2021, which primarily impacts housing units in the City of Seattle. The bill received widespread support and passed the Legislature. However, the Governor vetoed the formal stakeholder group to reduce state expenditures as an early cost savings measure to prepare for a forthcoming revenue shortfall stemming from the COVID-19 pandemic.
o Local Option Sales Tax Authority:House Bill 1590, sponsored by Rep. Beth Doglio (D-Olympia), authorizes cities and counties to councilmanically impose a .01 of 1% sales tax increase to fund affordable housing and behavioral health facilities. This authority exists in current law but requires voter approval. If the County does not impose the tax by September 30, 2020, then the City will have the authority to impose the tax. The bill was one of the final bills to pass the Legislature and has been signed into law by the Governor. It will become effective law on June 11, 2020. The City of Pasco did not take a position on this bill.
o Changes to State Funding for Affordable Housing: House Bill 2797, sponsored by Rep. June Robinson (D-Everett), is commonly referred to as the “trailer bill to House Bill 1406” because the bill makes several changes to the statute enacted in 2019 through
House Bill 1406, which allowed counties and cities to receive a credit against the state sales tax to fund affordable housing. House Bill 2797 would have extended the deadline for cities to adopt a qualifying local tax until December 31, 2021. If a City adopts a qualifying local tax, it is eligible to receive twice as much state funding. The bill was
