AGENDA City Council Meet & Greet 6:30 PM - Tuesday, August 14, 2018 City Hall Executive Briefing Rm (111), Sammamish, WA Page Estimated Time

6:30 pm NEW BUSINESS 2 - 71 1. State Lobbyist Candidates Meet & Greet

• Luke Esser & Nick Federici 6:30 pm to 7:30 pm

• The Arledge Group 7:30 pm to 8:30 pm

View Agenda Item

ADJOURNMENT 8:30 pm

City Council meetings are wheelchair accessible. American Sign Language (ASL) interpretation is available upon request. Please phone (425) 295-0500 at least 48 hours in advance. Assisted Listening Devices are also available upon request.

Page 1 of 71 NEW BUSINESS #1.

Agenda Bill City Council Special Meeting August 14, 2018

SUBJECT: State Lobbyist Candidates Meet & Greet

DATE SUBMITTED: August 01, 2018

DEPARTMENT: City Manager's Office

NEEDED FROM COUNCIL: ☐ Action ☐ Direction ☑ Informational

RECOMMENDATION: Meet and ask questions of the top two candidates for the state lobbyist

consulting position.

EXHIBITS: 1. Exhibit 1 - Esser & Federici Proposal

2. Exhibit 2 - Arledge Group Proposal

BUDGET: Total dollar amount ☐ Approved in budget Fund(s) ☐ Budget reallocation required ☑ No budgetary impact

WORK PLAN FOCUS AREAS: ☐ Transportation ☐ Community Safety

☐ Communication & Engagement ☐ Community Livability

☐ High Performing Government ☐ Culture & Recreation

☐ Environmental Health & Protection ☐ Financial Sustainability

KEY FACTS AND INFORMATION SUMMARY: Summary & Background On May 1, 2018, the City Council approved the release of an RFP for state lobbying services. Eight proposals were received by the due date, and a staff committee subsequently scored each proposal according to the criteria outlined in the RFP. The six top-scoring firms were then interviewed by a panel made up of two staff members and the three Councilmembers of the Legislative Committee (with one substitute).

Following interviews, the panel determined that The Arledge Group was their top choice if a lower fee could be achieved. If a lower fee was not possible, the panel would recommend Luke Esser & Nick Federici to move forward in the process. With the panel's direction, staff and the Arledge Group were able to tentatively agree on a lower fee of $5,500 per month.

Page 2 of 71 NEW BUSINESS #1.

On July 10, 2018, members of the interview panel briefed the full Council on their activities and requested direction on next steps. As many of the Councilmembers had yet to meet the lobbyists and because of the position's importance toward achieving legislative priorities, the Council desired to hold a "meet and greet" with the top two candidates.

Tonight's meeting is an opportunity for all Councilmembers to meet and ask questions of both candidates. No decision or action is required tonight. The Council will consider a contract during their meeting on September 4, 2018.

Duties of a Lobbyist The following list includes general examples of lobbyist duties: • Assist in the development of State legislative priorities. • Represent the City’s legislative objectives to the appropriate parties. • Monitor State legislation and other activities which pertain to the objectives of the City; • Recommend appropriate action regarding pertinent legislation; • Identify opportunities for City representatives to testify before legislative committees and subcommittees and communicate such opportunities to the City. Assist in preparation of testimony, and as requested, testify on behalf of the City; • Attend City meetings to brief City officials on legislative activities; • Provide reports to the City regarding the status of pertinent legislation; • Provide support on City efforts and initiatives beyond the legislative session to position the City to advance its objectives.

Page 3 of 71 NEW BUSINESS #1.

Proposal by Luke Esser & Nick Federici

In Response to City of Sammamish RFP for State Legislative Advocacy Services

May 21, 2018

Luke Esser Nick Federici Attorney & Govt. Affairs Nick Federici Govt. Relations M: (425) 736-6067 M: (360) 418-1936 [email protected] [email protected]

Page 4 of 71 NEW BUSINESS #1.

SECTION 1: EXECUTIVE SUMMARY

Thank you for this opportunity to respond to the City of Sammamish’s RFP for State Legislative Advocacy Services.

This Proposal from our joint lobbying team of Luke Esser and Nick Federici provides the City of Sammamish with the opportunity to retain two veteran Olympia advocates for one very reasonable price ($4,000 per month). We offer a unique and ideologically balanced combination of experience from both sides of the aisle, with a proven record of results for our clients, including notably the City of Spokane and the Association of Local Public Health Officials.

As we will flesh out more fully in the “Experience” discussion in Section 5 below, our lobbying team offers five major advantages to the City of Sammamish: a) Proven Results for Local Government Clients. Multiple examples follow. b) Experienced Representation, Always. We have no interns or junior associates. All work will be performed for the City by two Olympia veterans. c) Balance and Teamwork. Luke’s decades of experience in Olympia emanate from the political right, while Nick’s similar experience emanates from the political left. d) Effective Networking. Through engagement with other local governments, the Association of Washington Cities (AWC) and outside interest groups, we build and activate stakeholder coalitions to help achieve success. e) Strong Alignment with City of Sammamish Priorities. Our review of the adopted 2018 Legislative Priorities of the City of Sammamish reveals a strong alignment between our skill set and the City’s priorities. Further analysis is provided below.

The policy and fiscal successes that we have recently helped our local government clients to achieve in the City of Spokane (more than $10 million in Capital Budget projects alone this year, plus passage of a major policy bill) and for the Washington State Association of Local Public Health Officials ($10 million of new appropriations in the 2017-19 Operating Budget) provide direct evidence of our ability to deliver solid results from Day One for the City of Sammamish.

In Section 2 of our Proposal under “Methodology” we emphasize that our approach to advocacy involves both the work that we perform and the way that we conduct ourselves. We believe in thorough preparation, strategic thinking, strong relationships and savvy coalition-building, but we believe just as strongly that our behavior in Olympia should reflect well on our clients.

As a vibrant, state-of-the-art city located in a beautiful natural setting, with a diverse population whose residents prize their recreational opportunities and quality of life, it would be an honor for us to represent the City of Sammamish. Thank you again for the opportunity to present this Proposal. Luke Esser Nick Federici

1

Page 5 of 71 NEW BUSINESS #1.

SECTION 2: METHODOLOGY Our methodology involves both how we conduct ourselves and the specific strategies and tactics we employ to help our clients achieve success. First we will discuss the “Overarching Principles” that guide us in determining how to conduct ourselves, and then our “Approach To Advocacy” which outlines the specifics of how we propose to deliver the state legislative advocacy services detailed in Attachment A (“Preliminary Scope Of Work”) of the City’s RFP.

OUR OVERARCHING PRINCIPLES We never forget that we are the public face of our clients to legislators and their staff, the Governor’s Office, personnel at state agencies and to the community at large. Mindful of this important responsibility, the following are the overarching principles that guide us year-round in our advocacy work on behalf of our clients in Olympia and throughout the state: • Represent our clients in an ethical and professional manner • Treat everyone with courtesy and civility • Earn respect and credibility through thorough preparation on every issue • Maintain open lines of communication and remain accessible • Keep our word • There is no substitute for personal contact with key decision-makers • The Legislative Session begins long before Opening Day • The Legislative Session isn’t over until the Governor takes action on the last bill • State agencies never adjourn for the year

OUR APPROACH TO ADVOCACY The strategies and tactics that define our approach to advocacy are presented below in outline format. This is a project approach that we have honed over decades of experience in Olympia and it has proven itself effective time and time again for our local government clients and for all the clients we represent. We are confident that this approach will prove equally as successful for the City of Sammamish as well.

CONSTANTLY MONITORING THREATS & EXPLORING OPPORTUNITIES • State agencies never adjourn for the year. We therefore provide year-round monitoring, identification and analysis of key regulatory and legislative processes. • Likewise, legislative committees hold interim meetings that must be closely monitored. • Continuous review of AWC policy developments, of activity by other stakeholders and interest groups, and of political developments in general in the state. • This “early warning system” on behalf of the City can be invaluable in identifying new threats and emerging opportunities.

STRATEGIC THINKING ALIGNED WITH THE CITY’S PRIORITIES • We propose to take an early “deep dive” into the City’s priority issues. • Based on the “deep dive” we provide legislative and regulatory strategic advice, aligned with the City’s priorities and focused on effectively promoting the City’s objectives. • Achieve tangible progress by working with City elected officials and staff on development, preparation and implementation of State Legislative Agenda for 2019.

2

Page 6 of 71 NEW BUSINESS #1.

COMMUNICATE & ADVOCATE FOR THE CITY’S PRIORITIES • Waste no time in come in communicating the City’s priorities to local legislators, other key legislators, Governor’s Office, and state agency personnel. • Early engagement leads to local legislators becoming more invested in City’s priorities. • For the City of Spokane we had great success in gathering local legislators (including some who did not represent any part of the City) for an in-person sharing of priorities.

SECURE PRIME SPONSORS AND “CHAMPIONS” FOR CITY’S PRIORITIES • Work closely with local legislators (especially those from 5th, 41st & 45th Districts), learn their interests and priorities, and determine best choice to spearhead each priority issue. • Recruit Prime Sponsors for policy bills and “Champions” for appropriation requests (in Capital Budget, Operating Budget and Transportation Budget). • Assure recruited prime sponsors and “champions” of ongoing support from the advocates for the City and City elected officials and staff, and then follow through.

BROADENING THE CIRCLE OF SUPPORT • Arrange bipartisan and geographically dispersed groups of Co-Sponsors for policy bills and “Supporters” for appropriation requests. • Ensure early committee support by obtaining co-sponsorships from members of the appropriate policy committee, the Rules Committee and fiscal committees.

ORCHESTRATING PERSUASIVE COMMITTEE TESTIMONY • Arrange public hearings for City policy bills at times convenient for City. • Promptly alert City elected officials and staff of opportunities to testify on other bills of interest (whether those bills represent threats or opportunities). • Develop concise, persuasive talking points for City elected officials and staff in preparation for testimony in Olympia. • Deliver testimony ourselves as representatives of the City when necessary.

BUILDING ON THE MOMENTUM OF SUCCESSFUL COMMITTEE TESTIMONY • Secure support of Committee Chair and sufficient votes for committee passage. • Work with leadership to obtain Floor Votes for priority bills. • Repeat process in Opposite House.

NEVER TAKE THE EXECUTIVE BRANCH FOR GRANTED • Familiarize the Governor’s Office with our priority bills early in the process. • We never assume the Governor will sign our bills – we work to earn support. • Monitor state agency activity (rule-making, bill implementation, enforcement, grant dispersal, etc.) throughout the year and keep City apprised of relevant developments. • Coordinate with City departments as desired in their interactions with state agencies.

BUILDING STRONG RELATIONSHIPS & ALLIANCES • There is no substitute for personal contact, and therefore personal relationships, with key lawmakers and staff, officials at the Governor’s Office, and state agency personnel. • We have decades of experience building those relationships, on both sides of the aisle. • Active coordination with like-minded local governments and the AWC. • Construction of alliances with other stakeholders committed to the adoption of the City’s legislative priorities through coalition building, activation, and issue leadership.

3

Page 7 of 71 NEW BUSINESS #1.

YEAR-ROUND COMMUNICATIONS & ACCESSIBILITY • Comprehensive and timely communication on all matters of interest. • We pride ourselves on being accessible to our clients via phone, text and email. • Provide timely information and updates through written reports, oral reports, teleconferences and in-person meetings (as desired by the individual client). • Attend City Council meetings and meet in-person with City staff throughout the year, as requested, to provide briefings on legislative and regulatory activities.

SECTION 3. PRICING

Luke Esser and Nick Federici propose to provide the complete package of state legislative advocacy services described in Attachment A of the RFP (“Preliminary Scope Of Work”) and more for a total of $4,000 per month ($2,000 per month each). For this proposed monthly fee the City will receive the committed efforts of two veteran consultants, each with decades of experience in Olympia. We don’t anticipate any additional expenses for the City of Sammamish.

SECTION 4: QUALIFICATIONS

Under this Proposal from our joint lobbying team of Nick Federici and Luke Esser we will be Joint Co-Leads in the representation of the City and perform all advocacy work ourselves, as we do not utilize junior associates or interns. We first include a brief description of our extensive professional backgrounds, and then our resumes follow.

Luke’s professional background is mostly from the right side of the political spectrum. He served as a Republican State Legislator representing Redmond, Kirkland and Bellevue in the 48th District (four years each in the State House and State Senate), as Chairman of the Washington State Republican Party, and as Outreach Director at the state Attorney General’s Office. Luke has been a licensed attorney since 1989 and a full-time, registered lobbyist since 2011.

Nick’s background is mostly from the left side of the political spectrum. His father was a Democratic State Representative in Oregon, and Nick has deep relationships with Democratic leadership in Olympia and progressive organizations throughout the state. Nick has worked in Olympia since 1991, and as a full-time, registered lobbyist since 1994, representing over 40 clients on a wide variety of topics.

Luke Esser and Nick Federici both operate as sole proprietors. We team up to jointly represent several of our clients (especially local government clients), but represent several other clients separately. We both rent seasonal lodging in Olympia during the Legislative Session to maintain an “on the ground” presence every single day. During the rest of the year, Luke works out of his home office in Bellevue and Nick works out of his home office in Tacoma, and we maintain the same open access to communication during the interim between legislative sessions, so that at least one of us is always “on call” for urgent issues or actions.

4

Page 8 of 71 NEW BUSINESS #1.

Luke Esser, Attorney & Government Affairs 404 – 158th Place SE, Bellevue, WA 98008 M: (425) 736-6067 [email protected] Government Affairs Experience Government Affairs Consultant, 2011-Present: Committed to using my decades of experience in Olympia to help clients achieve their goals through government affairs, public relations and relationship-building services. Licensed Attorney since 1989, Registered Lobbyist since 2011. Current Clients: City of Spokane, the Kalispel Tribe of Indians (from Pend Oreille County), SEIU 775 (representing Medicaid-paid home care workers), Signature Healthcare Services (California-based operator of mental health hospitals), Washington State Catholic Conference. Legislative & Political Experience Chairman, Washington State Republican Party, 2007-10: Served two terms, with GOP making gains in both chambers of Legislature in every election held during tenure as Chairman. State Senator, 48th District, 2003-06: Majority Floor Leader, 2003-04; Minority Floor Leader, 2005-06; Chairman of Senate Technology & Communications Committee, 2003; Transportation Committee Member, 2003-06; Member of Boeing 787 Five Corners Alliance, 2003. State Representative, 48th District, 1999-2002: Co-Vice Chair of House Capital Budget Committee, 1999-2001; Judiciary and Higher Education Committee Member, 1999-2002. Legislative Awards (partial): 2006 “Legislator of the Year” from Washington State Council of Police & Sheriffs; “Cornerstone Award” from Association of Washington Business yearly from 2002-2006; 2004 “Certificate of Appreciation” from SPEEA for helping to land 787 for the state; 2001 “Star Award” from Bellevue College Trustees for support of state’s community colleges; 2000 “Guardian of Small Business” award from National Federation of Independent Business. Other Professional Experience: Outreach Director for Washington State Attorney General’s Office, 2005-06; Policy Director for King County Councilmember Rob McKenna, 1995-2004; Special Deputy Prosecuting Attorney, King County Juvenile Court, 1989-90. Communications Skills: Co-authored editorial “It Takes A Team To Fight Meth” for Attorney General that won 2007 “Award of Excellence” from The Communicator Awards (international awards program); AP stringer covering Mariners, Seahawks and Huskies throughout 1990’s. Education: Executive MBA, University of Washington Foster School of Business, 2013 (Valedictorian & 1st in Class); J.D., University of Washington School of Law, 1989; Bachelor’s degrees in Accounting and Editorial Journalism, University of Washington, 1985. Community Involvement: Former member of Washington Wildlife and Recreation Coalition Board, Bellevue Family YMCA Board of Directors, and Bellevue Rotary. Personal: A Bellevue native, finished fourth in state at the 1979 Washington High School Debate Tournament, Captain of UW’s Regional Champion College Bowl team in 1988, and a former member of the Pro Football Writers of America.

5

Page 9 of 71 NEW BUSINESS #1.

NICK FEDERICI GOVERNMENT RELATIONS 2714 N Alder St., Tacoma, WA 98407 (360) 481-1936 ● [email protected]

I am a strategic advocate who passionately pursues creative and collaborative solutions that result in better government and access to services that improve the lives of the residents of Washington.

SUMMARY More than 20 years of experience in the public policy, political strategy and advocacy arenas, developing and implementing forward-thinking policies to achieve significant quality of life improvements for all, particularly the most vulnerable. Skills exemplified:  Lobbying  Coalition Building & Leadership  Relationship Building  Stakeholder Collaboration  Strategic Consulting  Community Outreach  Budget & Policy Analysis  Expertise in Health Care, Housing,  Advocacy and Public Speaking Human Service, Operating Budget,  Legislative Testimony & Engagement Capital Budget, and Revenue Policy

EXPERIENCE NICK FEDERICI GOVERNMENT RELATIONS 1997 to PRESENT A proprietorship focused on lobbying for and offering strategic advice to local governments, not-for- profits and businesses with social justice, health, housing and human service-related missions. Principal Catalyst for local governments, not-for-profits and business organizations to develop and prioritize annual and long-term public policy agendas. Strategize on public policy opportunities and lead advocacy efforts with the State Legislature, Governor’s Office, state agencies, external organizations, media, and public. Provide extensive direct lobbying with public officials through in-person meetings, phone and email contact. Draft legislation, amendments, and other materials as needed. Build and maintain coalitions. Monitor developments and provide regular oral and written reports to organization leadership and staff.  Originated the idea of using real estate document recording fees as a funding source for homeless and housing assistance in 2000, and then led effort to reauthorize or increase this funding on six occasions, most recently in the 2018 Session.  Co-author, strategist and spokesperson for state Initiative 773, which increased the sales tax on cigarettes by 60 cents a pack (passed with 66.1% of vote), and Initiative 901, which prohibited smoking in public places (passed with 63.3% of vote).  Founding chair of Washington Long-Term Care Alliance; Former Chair of Washington Alliance for Tobacco Control & Children’s Health and Friends of the Basic Health Plan; Currently chair of the Our Economic Future / Revenue Coalition.  Successfully led effort to secure stakeholder consensus and legislative support for $850 million revenue package to help balance state budget deficit in 2010.  Coordinated compromise policy and funding solution for telecommunications tax parity package that preserved four programs (totaling $9.5 million) serving vulnerable populations in 2013.  Developed and negotiated compromise $24 million nursing home funding package that gained agreement of long-time legislative adversaries, resulting in a 35 cent per hour wage increase for nursing home workers in 2014.

6

Page 10 of 71 NEW BUSINESS #1.

WASHINGTON STATE NURSES ASSOCIATION 1994 to 1997 One of the nation's leading nursing associations, representing more than 75,000 Registered Nurses, WSNA has taken a comprehensive, multi-purpose approach to: advocate and improve healthcare for patients; foster high standards for nursing practice; provide opportunities for continuous learning; and lobby the Legislature and regulatory agencies on healthcare issues affecting the public and nurses. Government Relations Specialist Created WSNA’s legislative agenda, met with legislators to discuss the approved agenda, monitored pertinent legislation, testified in front of legislative committees, and provided guidance regarding legislative strategy.

WASHINGTON BOARD OF HEALTH 1993 to 1994 The Washington Board of Health serves the citizens of Washington by working to understand and prevent disease across the entire population. Established in 1889 by the state constitution, the Board of Health provides a public forum for the development of public health policy in

Washington. Special Assistant to the Executive Director Board's Liaison to the Legislature, executive agencies, stakeholders and public, including regular testimony at legislative hearings and responses to citizen and media inquiries. • Conducted seven extensive Sunset Reviews of health professions, including convening and chairing public hearings and drafting report results. • Major role in the researching, writing, editing and publishing of the 1994 Washington State Public Health Report.

WASHINGTON STATE HEALTH CARE AUTHORITY 1992 to 1993 The Washington State Health Care Authority, at the time, oversaw the Public Employees Benefits Board (PEBB) and Basic Health Plan (BHP) programs, and served as policy analysis support for the Governor’s efforts on health care reform. Legislative Research Analyst Researched and prepared reports on methods of evaluating the quality of managed care plans for implementation of 1993 health care reform legislation.  Solely responsible for policy and data research for major study of health benefits for retired K-12 school district employees.  Coordinated and chaired meetings of advisory committee on retiree benefits, including substantial contact with key executive, legislative and stakeholder staff.

AWARDS  Washington Law & Politics Magazine “Big League Player” award, April/May 2004  Fuse Washington Sizzle Award: “Knight in Shining Armor” award, May 2010 (only non-elected official ever to receive a “Sizzle Award”)

EDUCATION School of Public Affairs 1990-1992 University of Washington, Seattle, WA Bachelor of Arts, Government and History 1989 Oberlin College, Oberlin, Ohio

7

Page 11 of 71 NEW BUSINESS #1.

SECTION 5: EXPERIENCE THE UNIQUE ADVANTAGES WE PROVIDE

Our analysis of the information provided in the City of Sammamish’s RFP for State Legislative Advocacy Services, the City’s adopted 2018 Legislative Priorities, and our knowledge of the issues impacting local governments in King County and our state today indicates that our advocacy team is uniquely qualified to help deliver the type of results that a vibrant, growing city like Sammamish deserves. Following is an explanation of the five major advantages that we can offer to the City of Sammamish.

a. OUTCOMES: PROVEN RESULTS FOR LOCAL GOVERNMENT CLIENTS

We are proud of the positive results that we have helped to deliver for our local government clients in recent years. The successes we have achieved in the last two years for the City of Spokane, for the Washington Association of Local Public Health Officials and on the issue of increased funding for homelessness and housing programs reflect exactly the kind of successes in the fields of public policy and budget appropriations that we expect to deliver for the City of Sammamish.

City of Spokane Like the City of Sammamish, the City of Spokane faces a number of challenges in serving its growing population. Since we were hired by the City of Spokane in 2016 we have delivered multiple successes for the City on both policy issues and budget appropriations, successes that correlate very well with the results we would intend to provide to the City of Sammamish.

During our work for the City of Spokane we have tackled challenging areas of policy that require negotiations with multiple stakeholders of vastly different backgrounds. We have not limited ourselves to simple bills that attract no opposition, which is why we are ready to tackle City of Sammamish priority issues like avoiding double-taxation following annexations and ending the Metro/Sounds Transit monopoly which prevents more efficient use of the South Sammamish Park-and-Ride Lot. And we have competed effectively with other local governments for the limited dollars available in the state’s Capital Budget, Operating Budget and Transportation Budget, winning major victories along the way. The following examples detail just a few of those successes.

POLICY: Nick’s hard work over the last 18 months on the issue of providing cities with a tool to use in addressing the nuisances created by abandoned and foreclosed homes paid off in March when Gov. Inslee signed 2nd Engrossed Substitute House Bill 2057. This bill allows cities, following notice, to abate nuisances at abandoned homes and bill the financial institution holding the mortgage for the cost of abatement. Our efforts began when the City of Spokane alerted us to the problem of “zombie houses” that were attracting graffiti, squatters and rats. The negotiations between lobbyists representing cities, banks and consumer advocates consumed countless meetings, bill drafts and strategy sessions. And then the opponents put on a furious campaign after the session to encourage the Governor to veto the bill. But through persistence and a strategy that

8

Page 12 of 71 NEW BUSINESS #1.

focused on a win-win-win solution, Nick and a handful of other city lobbyists were able to craft and pass a solution that benefits all cities across the state.

FISCAL: We helped to obtain substantial new resources for the City of Spokane in the Biennial Capital Budget (adopted in January), but did not stop our efforts there. We knew there could be additional funding opportunities in a Supplemental Capital Budget, so we immediately went to work advocating for further resources. These efforts helped to ensure that when the Supplemental Capital Budget was adopted in March it contained an additional $3.9 million for projects in the City of Spokane. Between the two Capital Budgets of 2018, funded projects we were able to secure include:  $2.5 million for dental clinics in the City of Spokane  $2.4 million for the facilities of the Spokane Diversion Project (diverting appropriate low-level offenders from incarceration to behavioral health treatment)  $2 million for the acquisition of pristine riverfront property on the Spokane River that will be managed by the City of Spokane Parks Department  $1.1 million to develop the South Gorge Trail, a riverfront trail that will be located just west of Downtown Spokane  $2.7 million in restored funding for the City of Spokane’s stormwater system

We pride ourselves on being resourceful for our clients and exploring multiple possible paths for success if one particular path is blocked. For example, when it became clear that Capital Budget funds would not be available for a particular park bridge in Downtown Spokane, we worked to ensure that $300,000 of Transportation Budget funds were appropriated so that the project could still proceed.

The examples above are representative of the resourcefulness and thoroughness that we would utilize as advocates for the City of Sammamish in Olympia, whether working toward funding for salmon culvert replacement and improvement projects, or working to secure other appropriations from the state Capital Budget, Operating Budget or Transportation Budget.

Washington State Association of Local Public Health Officials The Washington State Association of Local Public Health Officials (WSALPHO) is an affiliate of the Washington State Association of Counties and the National Association of County and City Health Officials. WSALPHO’s current challenge is dealing with increasingly complex public health issues despite increasingly limited resources.

In 2016 and 2017 we represented WSALPHO in their effort to obtain improved policy and substantial new funding for Foundational Public Health Services (FPHS are the core public health services needed in every community). This was not going to be easy in a 2017 Legislative Session dominated by discussions about how to fund the K-12 public education funding mandates of the McCleary decision. After a long process of coalition building and personal engagement with key legislators, the Legislature appropriated $10 million in new funding for FPHS in the 2017-19 Operating Budget.

9

Page 13 of 71 NEW BUSINESS #1.

Further, when it became clear that a separate policy bill was not going to make it all the way through the legislative process, we were able to ensure that proviso language was included in the 2017-19 Operating Budget that helped to advance the funding and policy goals of WSALPHO and local public health officials throughout the state.

A great deal of the advocacy involved in this effort was in successfully developing, managing, and maintaining the coalition of supportive interests, including representatives from diverse local health jurisdictions across the state (including Patty Hayes and Dorene Hersh from Public Health – Seattle & King County), health care industry partners, local elected officials, and the Washington State Department of Health, to shape final outcomes that were workable for each of the participants.

Document Recording Fee For Local Government Housing Assistance Nick originated the idea of using real estate document recording fees as a funding source for cities and counties to address homelessness and promote affordable housing back in 2000, and he has since led the effort to reauthorize or increase this funding on six occasions. The most recent success occurred during the 2018 Legislative Session, when an increase in the document recording fee was authorized that will generate an additional $21.6 million per year for local governments to fund desperately-needed homelessness and affordable housing programs throughout the state.

We encourage you to speak with our local government references, and with our other references as well, if you desire further information about the successes that we have helped to deliver for our clients.

b. EXPERIENCED REPRESENTATION, ALWAYS

If our proposal is accepted, it is important to note that the City of Sammamish’s business will never be delegated to an intern, junior associate or recent college graduate. Luke and Nick personally perform all of the lobbying work for our clients and we do not outsource any of our advocacy work.

Luke is the junior member of the team in terms of legislative experience, and he has been working in Olympia for 20 years (since he was elected to the State House in 1998) and has been a full-time, registered lobbyist since 2011. Nick has been working in Olympia since 1991, and as a full-time, registered lobbyist since 1994.

While some city lobbyists work alone and others hire junior staffers, associates or subcontractors, we find that joining together as a team that has a veteran advocate present during every single contact on behalf of our clients gives us the best possible chance of achieving success for our clients.

c. BALANCE & TEAMWORK

Both Luke and Nick have considerable experience working in a bipartisan fashion in Olympia, and both frequently interact regularly and constructively with Democratic and

10

Page 14 of 71 NEW BUSINESS #1.

Republican legislators and with executive branch staff. But there is no doubt that having deep relationships in all four caucuses, and with the Governor’s Office, is a strategic asset that should never be underestimated. And it is very difficult for any one person to have that level of deep relationships with all four caucuses.

This is the advantage that our ideologically balanced team can provide. Nick’s background is predominantly from the left side of the political spectrum and Luke’s background is predominantly from the right. Nick has deep and longstanding relationships with top leadership in both Democratic caucuses and among progressive stakeholders, and Luke is a former Republican legislator (having served in both the State House and State Senate) and former Chair of the State Republican Party.

Our unique advocacy team allows for a division of responsibilities, which is particularly helpful in the recent era of closely-divided government in Olympia. Also, since there are 147 legislators and countless staff, it is a considerable benefit to have two experienced lobbyists who can be lobbying different legislators on the City of Sammamish’s behalf at the exact same time, especially during the most frantic points of the legislative session when you really do need to be in two places at the same time.

d. EFFECTIVE NETWORKING

We are active and regular participants at AWC-sponsored meetings of city lobbyists that are held weekly during the Legislative Session and intermittently during the interim. Not every city lobbyist or lobbyist team participates actively in these meetings, but we find them essential for both information gathering and for creating coalitions of city lobbyists from around the state on issues of common interest.

The City of Sammamish deserves a lobbying team committed to investing the time and effort necessary to achieve the City’s priorities. We prioritize networking opportunities such as the AWC-sponsored meetings because of our commitment to making every possible effort at coalition building that would help our local government clients accomplish their fiscal and policy goals.

In addition, we both possess considerable experience in working with outside stakeholders, activating coalitions and building alliances to increase the number of legislators around the state concerned with a particular issue and to maximize the chance of a successful outcome for our clients.

e. STRONG ALIGNMENT WITH CITY OF SAMMAMISH PRIORITIES

Our analysis of the priority issues and principles contained in the City’s adopted 2018 Legislative Priorities, and our knowledge and experience with issues affecting local governments in King County and throughout the state, make it clear that our experience and skill set aligns very well with the city’s priorities.

11

Page 15 of 71 NEW BUSINESS #1.

Salmon Passage Culvert Improvement Grants: Luke’s experience with grant funding for culvert replacement and improvement dates all the way back to his work in the State House in the late 1990’s as Co-Vice Chair of the House Capital Budget Committee and to his work in the 2000’s in the State Senate as a member of the Senate Transportation Committee and on the Board of the Puget Sound Partnership.

We encourage our clients to pursue multiple avenues for funding each individual project, so that one funding roadblock is not a fatal blow. For salmon passage culverts, we would suggest pursuing state funding from the Capital Budget via the Brian Abbott Fish Barrier Removal Board (administered within the state’s Recreation & Conservation Office), from the Transportation Budget via the Fish Barrier Correction Program, and through individual appropriation requests by local legislators.

Building coalitions almost always enhances the chance of success, so continuing to coordinate with the Puget Sound Partnership and officials and colleagues from Water Resource Inventory Area 8 would be among our top priorities, and we would also suggest that matching funding for culvert replacement and improvement be sought from federal and private sources as well.

Annexation of Park District Areas – End Double Tax: We both have considerable experience in working challenging policy issues to successful conclusions. Most recently, Nick spent 18 months working a bill addressing abandoned and foreclosed homes that required long negotiations with diverse and sometimes antagonistic parties ranging from banks and credit unions to consumer protection organizations to other cities. Through persistence and a strategy that focused on a win-win-win solution, Nick and a handful of other city lobbyists were able to craft and pass a solution that benefits all cities across the state.

Emphasizing the unfairness of double taxation is the strongest opening argument for conversations with legislators on this issue. Even those who are not familiar with the intricacies of park district financing should immediately appreciate how unjust the current arrangement is to residents who have recently been annexed into the City of Sammamish, and into other cities throughout the state.

This is precisely the kind of issue where our considerable experience in building alliances and activating coalitions would prove very useful, especially Nick’s long-time involvement in revenue and budget coalition work. Finding like-minded cities across the state to join as allies would increase the number of legislators interested in finding a solution for this problem. Likewise, working with the Association of Washington Cities to help raise the profile of this double-taxation issue will greatly enhance to opportunity to achieve a successful conclusion.

Metro Monopoly Lifted: In the most recent legislative session we were aware of HB 2862 sponsored by Rep. Mark Harmsworth and co-sponsored by Rep. Paul Graves, and of the provision in the original version of Sen. Guy Palumbo’s SB 6080 on electric vehicles, both of which would have allowed employer-operated shuttles to swing

12

Page 16 of 71 NEW BUSINESS #1.

through Park-and-Ride lots (including the South Sammamish Park-and-Ride) to pick up and drop off their employees.

Residents of the City of Sammamish pay a lot of taxes to King County Metro and to Sound Transit and receive relatively little transit service in return, just as the transportation bottlenecks on the Eastside and throughout the Central Puget Sound region continue to worsen. Luke has followed transportation and transit issues closely since his time as a member of the Senate Transportation Committee in the 2000’s, and both he and Nick would look forward to helping provide more options for commuters in the City of Sammamish.

We would suggest continuing to build a coalition with individual private businesses that might be supportive of eliminating King County Metro’s veto power over employer- operated shuttles in Park-and-Ride lots, along with business organizations like the East King County Chambers Coalition and the Association of Washington Business. It would also be helpful to recruit other cities to support the issue, as that would provide key inroads to building legislative support beyond the legislators who represent parts of the City of Sammamish in the 5th, 41st and 45th Districts.

Our client the City of Spokane has faced many of the same general challenges that all cities face – ranging from inadequate state-shared revenues to avoiding unfunded mandates, ensuring adequate funding for mandated programs like indigent defense costs, and curbing abusive public records requests – so we are very familiar with all these types of issues and with the coalition efforts that will be necessary to solve the common problems faced by cities across the state.

13

Page 17 of 71 NEW BUSINESS #1.

SECTION 6. REFERENCES

Three business references for both Luke Esser and Nick Federici:

1. Candace Mumm, Councilmember & Chair – Legislative Team City of Spokane Spokane City Hall, 7th Floor 808 W Spokane Falls Blvd. Spokane, WA 99201 M: (509) 703-2863 [email protected]

2. Jeff Ketchel, Legislative Committee Co-Chair Washington State Association of Local Public Health Officials Environmental Health Director, Snohomish Health District 3020 Rucker Avenue Everett, WA 98201 W: (425) 339-5200 [email protected]

3. Adam Glickman, Secretary-Treasurer SEIU 775 215 Columbia St. Seattle, WA 98104 M: (206) 295-9613 [email protected]

Two business references for Luke Esser:

1. Chris Strow, Former Director of Government Affairs Amerigroup Washington (Now Deputy Controller, Idaho State Controller’s Office) 700 W State St. Boise, ID 83720 M: (206) 419-0371 [email protected]

2. Joe Sprague, Executive Director Washington State Catholic Conference (Former Senior V.P at Alaska Airlines) 710 Ninth Ave. Seattle, WA 98104 M: (206) 605-2476 [email protected]

14

Page 18 of 71 NEW BUSINESS #1.

Two business references for Nick Federici:

1. Jim Cooper, President and CEO United Ways of the Pacific Northwest (Washington, Oregon, Idaho) (Also Member, Olympia City Council) 1211 Fourth Avenue East, Suite 101 Olympia, WA 98506 M: (360) 451-9053 [email protected]

2. Kim Herman, Executive Director Washington State Housing Finance Commission 1000 2nd Avenue, Suite 2700 Seattle, Washington 98104 W: (206) 464-7139 [email protected]

General References for Luke Esser: Bob Ferguson, current Democratic Attorney General, and Rob McKenna, former Republican Attorney General. Contact information available upon request.

15

Page 19 of 71 NEW BUSINESS #1.

SECTION 7. CLIENT LIST

NICK FEDERICI CURRENT CLIENT ORGANIZATIONS WASHINGTON STATE HOUSING FINANCE COMMISSION 2000 to PRESENT WASHINGTON LOW INCOME HOUSING ALLIANCE 2000 to PRESENT RESPIRATORY CARE SOCIETY OF WASHINGTON 2002 to PRESENT FAIRFAX HOSPITAL 2005 to PRESENT UNITED WAY OF KING COUNTY 2005 to PRESENT SEIU 775 2007 to PRESENT WIN 211 NETWORK 2010 to PRESENT PIONEER HUMAN SERVICES 2014 to PRESENT UNITED WAYS OF THE PACIFIC NORTHWEST 2015 to PRESENT CITY OF SPOKANE 2016 to PRESENT TOXIC FREE FUTURE 2017 to PRESENT

NICK FEDERICI PREVIOUS CLIENT ORGANIZATIONS AARP WASHINGTON STATE OFFICE, AMERICAN CANCER SOCIETY, AMERICAN LUNG ASSOCIATION OF WASHINGTON, ARC OF WASHINGTON, ARNPS UNITED, CHOICE REGIONAL HEALTH NETWORK, FAIRNESS LOBBY, FRIENDS OF THE BASIC HEALTH PLAN, HABITAT FOR HUMANITY WASHINGTON, HATE FREE ZONE / ONE AMERICA, KING COUNTY HUMAN SERVICES ROUNDTABLE, MARCH OF DIMES, MIDWIVES ASSOCIATION OF WASHINGTON STATE, NATIONAL ASSOCIATION OF SOCIAL WORKERS, NATIONAL MULTIPLE SCLEROSIS SOCIETY, GREATER WASHINGTON CHAPTER, OPEIU LOCAL 8, PROVAIL, SEATTLE FLOATING HOMES ASSOCIATION, SOUND MENTAL HEALTH, VERIFIED VOTING, WASHINGTON ALLIANCE FOR TOBACCO CONTROL AND CHILDREN'S HEALTH, WASHINGTON AMBULANCE ASSOCIATION, WASHINGTON ASSOCIATION FOR MARRIAGE AND FAMILY THERAPY, WASHINGTON ASSOCIATION OF HOUSING AND SERVICES FOR THE AGING, WASHINGTON PROTECTION AND ADVOCACY SYSTEM, WASHINGTON STATE ASSOCIATION OF ENGINEERING GEOLOGISTS, WASHINGTON STATE ASSOCIATION OF LOCAL PUBLIC HEALTH OFFICIALS, WASHINGTON STATE HOME CARE COALITION, WASHINGTON STATE NURSES ASSOCIATION, WASHINGTON TOXICS COALITION, WASHINGTON UNITED FOR FAIR REVENUE, WASHINGTON UNITED FOR QUALITY NURSING HOME CARE.

Luke Esser Current & Former Clients

Current Clients: City of Spokane, the Kalispel Tribe of Indians (from Pend Oreille County), SEIU 775 (representing Medicaid-paid home care workers), Signature Healthcare Services (California-based operator of mental health hospitals), Washington State Catholic Conference. Previous Clients: Washington State Association of Local Public Health Officials, Amerigroup Washington (state affiliate of Anthem insurance company), H2V Tech (startup clean energy company), Cowlitz Tribe of Indians, King County Alliance for Human Services.

16

Page 20 of 71 NEW BUSINESS #1.

SECTION 8. WORK SAMPLES

We pride ourselves on providing timely information to our clients through written reports, oral reports, teleconferences and in-person meetings (as desired by the individual client). Writing samples we have provided in Appendix A include three documents we prepared for the City of Spokane: a Weekly Advance Notice of the public hearings of interest to the City (the version from Jan. 19, 2018), a Weekly Progress Spreadsheet regarding the City’s Adopted Legislative Priorities (the version from Feb. 9, 2018), and our 2017 Post-Session Report.

CONCLUSION

We take great professional satisfaction in helping our clients to achieve their goals, and we are proud of the public policy improvements and the literally tens of millions of dollars that we have helped our local government clients to obtain within the last two years. We are confident of our ability to deliver similar results for the City of Sammamish.

It would be an honor for us to represent the City of Sammamish before the State Legislature, the Governor’s Office, and the administrative agencies of state government, and to put our considerable experience in Olympia to work on behalf of a city with such a bright future.

Thank you again for the opportunity to introduce ourselves, to submit this Proposal in response to the City’s RFP for State Legislative Advocacy Services, and to express our eagerness to assist the City of Sammamish in achieving its legislative goals in 2019 and beyond.

Luke Esser Nick Federici

17

Page 21 of 71 NEW BUSINESS #1.

APPENDIX A.

WRITING SAMPLES

Weekly Advance Notice of Public Hearings of Interest Pages 19-23 for City of Spokane, Jan. 19, 2018

Weekly Progress Spreadsheet on Adopted Legislative Page 24 Priorities for City of Spokane, Feb. 9, 2018 (Content by Nick and Luke, formatted by City staff)

2017 Post-Session Report for City of Spokane Pages 25-39

18

Page 22 of 71 NEW BUSINESS #1.

WEEKLY ADVANCE NOTICE OF PUBLIC HEARINGS OF INTEREST TO CITY OF SPOKANE FOR JANUARY 19, 2018

We provide a weekly “heads-up” to the Legislative Team on the Spokane City Council (on Friday of the prior week) regarding public hearings of potential interest to the City. Following is the version that we submitted on Jan. 19, 2018:

PUBLIC HEARINGS OF INTEREST TO THE CITY OF SPOKANE NEXT WEEK Following below are brief descriptions of bills that will receive public hearings next week in Olympia and that are either on the City's adopted 2018 Legislative Agenda or were discussed at the weekly meeting of city lobbyists on Thursday night. Bills of significant interest are bolded.

Public Hearings for the week of Jan. 22 to Jan. 26, 2018:

HSE PUBLIC SAFETY, Monday, 1:30pm *2214 – Removing the prohibition on planning for a nuclear attack in emergency management plans

SEN TRANSPORTATION, Monday, 3:30pm *6043 – Concerning transportation network companies Industry-sponsored bill. *S-Bill – Concerning transportation network companies Bill sponsored by Teamsters and City of Seattle.

HSE APPROPRIATIONS, Monday, 3:30pm *2006 – Providing cities and counties flexibility within existing resources Removes prohibitions on supplanting existing local government expenditures with proceeds from a locally-imposed .1% sales and use tax dedicated to mental health and substance abuse, and allows all counties to seek voter approval of a criminal justice regular property tax levy of up to $.50 per $1,000 of assessed valuation (currently limited to small counties). *2511 – Providing a benefit increase to certain retirees of the public employees’ retirement system plan 1 and the teachers’ retirement system plan 1. AWC opposes.

SEN FINANCIAL INSTITUTIONS & INSURANCE, Tuesday, 8am *6371 – Concerning facilities financing by the housing finance commission Increases the Washington State Housing Finance Commission’s debt limit from $6B up to $8B.

SEN ECONOMIC DEVELOPMENT & INTERNATIONAL TRADE, Tuesday, 8am

19

Page 23 of 71 NEW BUSINESS #1.

Work Session: *Infrastructure and Broadband

HSE STATE GOVERNMENT, ELECTIONS & INFORMATION TECHNOLOGY, Tuesday, 8am *2746 --- Providing options for local governments to adopt alternative voting procedures Would allow local governments to eliminate primary elections and utilize a proportional voting system to elect officeholders.

SEN ENERGY, ENVIRONMENT & TECHNOLOGY, Tuesday, 10am *6285 – Creating the hazardous substance tax stabilization act Allows the state to contractually guarantee its remedial action grant contribution share on large, multi-biennium projects to local governments. *6367 – Concerning publicly owner industrial wastewater treatment facilities Allows these projects, if they reduce the burden on a municipal wastewater facility, to be eligible for low-interest state loans. *5935 – Enhancing consumer access, affordability, and quality of broadband and advanced telecommunication services Sheldon-Carlyle bill telecom bill that is friendlier to cities than other proposals, but AWC still has concerns.

HSE COMMUNITY DEVELOPMENT, HOUSING & TRIBAL AFFAIRS, Tuesday, 10am *2503 – Concerning zoning regulations relating to accessory dwelling units Local governments would be allowed to authorize accessory dwelling units outside Urban Growth Boundaries. *2480 – Providing local governments with options to preserve affordable housing in single-family neighborhoods King County Assessor-sponsored bill that allows a county or city to establish a program to exempt property taxes for up to 12 years on portions of single-family properties that provide affordable housing to low income tenants. Controversial with some because of the tax shift that results.

HSE TECHNOLOGY & ECONOMIC DEVELOPMENT, Tuesday, 10am *2401 – Concerning the energy independence act Among many other provisions, prohibits utilities from using electricity produced by waste incineration to meet any new energy or capacity needs.

HSE JUDICIARY, Tuesday, 10am *2583 – Concerning local authority to address affordable housing needs through regulation of rent and associated charges Would allow local rent control. Prime sponsor has urged cities to “stay out.” *2578 – Preserving and expanding rental housing options for persons whose source of income is derived from or includes sources other than employment Prohibits landlords from discriminating against prospective tenants based on source of income and creates a program to reimburse landlords for damage inflicted by tenants whose source of income included benefits or subsidy programs.

20

Page 24 of 71 NEW BUSINESS #1.

*2475 – Concerning the tolling of construction defect claims Requires homebuilders to be given a period to “cure” construction defects before homeowners can sue for construction defect claims.

HSE LOCAL GOVERNMENT, Tuesday, 10am *2665 – Eliminating certain requirements for the annexation of an unincorporated island of territory Eliminates the referendum requirement. *2729 – Concerning accessible public on-street parking for individuals with a physical disability Requires local governments to prepare a plan to address the phase-in of retrofitting streets with accessible on-street parking for individuals with a physical disability. *2737 – Studying the constitutional and statutory obligations and tax revenue capacity of local government entities.

SEN LOCAL GOVERNMENT, Tuesday, 1:30pm *6294 – Exempting impact fees for low-income housing development *6312 – Eliminating certain requirements for the annexation of an unincorporated island of territory Eliminates the referendum requirement.

HSE LABOR & WORKPLACE STANDARDS, Tuesday, 1:30pm *2697 – Limiting industrial insurance benefits for injuries or diseases caused by use of intoxicating liquor or drugs AWC monitoring.

HSE ENVIRONMENT, Tuesday, 1:30pm *2658 – Concerning the use of perfluorinated chemicals in food packaging *2793 – Reducing the use of certain toxic chemicals in firefighting activities Requires an end to the manufacture and sale of Class B firefighting foam in 2020, except to the extent required by federal law, and adds notice provisions.

SEN WAYS & MEANS, Tuesday, 3:30pm *6290, 6305 & 6340 – Bills increasing certain retiree benefits within the PERS and TRS systems. AWC opposes all three.

HSE CAPITAL BUDGET, Tuesday, 3:30pm *2726 – Concerning public-private partnerships for alternative public works contracting AWC is considering supporting.

HSE TECHNOLOG & ECONOMIC DEVELOPMENT, Wednesday, 8am *2673 – Providing a tax incentive for non-rural data centers

21

Page 25 of 71 NEW BUSINESS #1.

HSE JUDICIARY, Wednesday, 8am *2687 – Increasing appropriated funds for public defense services AWC is putting a together a panel of city representative to support.

HSE AGRICULTURE & NATURAL RESOURCES, Wednesday, 8am *2743 – Concerning the integration of reclaimed water, water system planning, and groundwater source protection

HSE LOCAL GOVERNMENT, Wednesday, 8am *2789 – Requiring support by a majority of the people before annexation of a city, town, or unincorporated area

SEN LABOR & COMMERCE, Wednesday, 1:30pm *6229 – Requiring employers to provide exclusive bargaining representatives reasonable access to new employees for the purposes of presenting information about their exclusive bargaining representative AWC tracking.

HSE TRANSPORTATION, Wednesday, 3:30pm *2604 – Concerning emerging internet technology applications and consumers utilizing the services of carrier network companies and carrier network company operators Bill sponsored by Dolly.com.

SEN ECONOMIC DEVELOPMENT & INTERNATIONAL TRADE, Thursday, 8am *6361 – Authorizing certain cities to establish a limited exemption from local property taxes to encourage redevelopment of vacant lands in urban areas. Our Bill on encouraging development of surface parking lots!!! *6418 – Incentivizing the development of commercial office space in cities with a population of greater than thirty-five thousand and located in a county with a population of less than one million five hundred thousand. Local property tax and sales tax incentives for the development of commercial office space. City of Tacoma running, though would apply to Spokane and other cities.

SEN FINANCIAL INSTITUTIONS & INSURANCE, Thursday, 8am *6484 – Concerning nuisance abatement Reflects the negotiations to date on our foreclosure and abandoned homes issue, and contains the latest work-in-progress compromise language.

HSE LABOR & WORKFORCE STANDARDS, Thursday, 8am *2817 – Limiting overtime for corrections officers

HSE ENVIRONMENT, Thursday, 8am *2518 – Siting tenant-owned mobile home parks for senior citizens Allows mobile home parks for senior citizens outside of urban areas.

22

Page 26 of 71 NEW BUSINESS #1.

*2599 – Allowing local governments to collect reasonable fees to cover costs for long- range planning required by state environmental policy statutes

SEN ENERGY, ENVIRONMENT & TECHNOLOGY, Thursday, 10am *6269 – Strengthening oil transportation safety Adds oil spill response tax to oil moved by pipeline (oil moved by rail or vessel already subject to this tax), and modifies planning requirements for oil spill readiness.

SEN LOCAL GOVERNMENT, Thursday, 1:30pm *6314 – Extending the existing state property tax exemption for residences of senior citizens and disabled person to local regular property taxes *6417 – Concerning the creation of housing opportunity zones by cities and counties Very similar to HB 2711, which is supported by Mayor Condon and CP Stuckart.

HSE JUDICIARY, Thursday, 1:30pm *2666 – Relating to local government authority to regulate firearms Allows local governments to adopt gun law more restrictive than state law (removes state pre-emption).

SEN WAYS & MEANS, Thursday, 3:30pm *6242 & 8212 – Amending the Constitutions to provide a homestead property tax exemption. *6300 – Creating a task force on state and local property tax reform

HSE TRANSPORTATION, Thursday, 3:30pm *2723 – Modifying the types of off-road vehicles subject to local government regulation

23

Page 27 of 71 NEW BUSINESS #1.

Page 28 of 71 NEW BUSINESS #1.

City of Spokane 2017 Post-Session Report

By Luke Esser & Nick Federici

25

Page 29 of 71 NEW BUSINESS #1.

Overview In A 2017 Session Dominated By McCleary, Many Policy And Fiscal Impacts On The City Of Spokane

Discussions of how to meet the requirements of the state Supreme Court’s McCleary decision. dominated the State Legislature from the opening gavel on Jan. 9th until the 2017-19 Operating Budget was adopted on June 30th, the last day of the 2015-17 biennium. Every other issue remained a lesser priority until McCleary could be resolved. Ultimately a bipartisan agreement on education policy reforms and funding was reached, with the state Operating Budget committed to adding $7.3 billion for K-12 funding over the next four years.

The accompanying policy bill that set the new education funding and finance program into place (EHB 2242) increased salaries for teachers, administrators and classified employees, and are fully implemented from 2018-20. EHB 2242 also increased state funding for special education, vocational education, highly capable students, and transitional and bilingual programs, created a learning assistance allocation for high poverty schools, and established a statewide program of employee benefits for school district employees beginning in 2020.

To pay for these K-12 enhancements, EHB 2242 establishes a new state property tax for common schools, beginning in 2018, for a total rate of a $2.70 per $1,000 of assessed value, when combined with the existing state tax rate, and establishes a new statewide lid on the amount of property taxes that local school districts may collect through voter-approved levies. For residents of those school districts that teach students within the City of Spokane, the financial impacts of these property tax changes will be as follows for the owner of a single- family residence with median value for that district: 1) Spokane School District -- $130 increase in 2018, lowering to a decrease of $80 in 2019, a decrease of $60 in 2020 and a decrease of $20 in 2021; 2) Mead School District – $210 increase in 2018, $90 decrease in 2019, $40 decrease in 2020 and a $10 increase in 2021; 3) Cheney School District – $150 increase in 2018, $10 increase in 2019, $70 increase in 2020 and a $110 increase in 2021.

The other most prominent budget-related item from 2017 was the failure of the State Legislature to agree on a Capital Budget for the 2017-19 biennium. Senate Republicans insisted that modification be made to water rights law to address the state Supreme Court’s Hirst decision before they would agree to passing a Capital Budget. No agreement on Hirst was ever reached, and so approximately $4 billion in statewide capital projects remain in limbo for now, including multiple projects of importance to the City of Spokane.

Among the tax policy changes made by the State Legislature, one with a significant impact on the City of Spokane, and cities in general, was the Marketplace Fairness Act (or Internet Sales Tax) that takes effect on Jan. 1, 2018. Starting on that date out-of-state internet retailers will be required to either collect sales tax from their customers inside Washington state or provide the state Department of Revenue with the contact information for those customers.

26

Page 30 of 71 NEW BUSINESS #1.

The state Department of Revenue has projected that the implementation of an internet sales tax will provide the City of Spokane with (all numbers compared to a base year of 2017) an additional $400,000 in 2018, increasing to an additional $1.23 million in 2019, an addition $1.57 million in 2020, an additional $1.76 million in 2021, and additional $1.91 million in 2022, and an additional $2.09 million in 2023.

While traditional state-shared revenue with cities such as liquor taxes and criminal justice assistance are fully funded for 2017-19, local government marijuana mitigation revenues are reduced statewide for cities and counties from $30 million to $12 million in the 2017-19 biennium, though the new internet sales tax revenue gained is expected to be significantly higher than the revenue lost. There are some outstanding legal issues with this internet sales tax proposal because of the U.S. Supreme Court’s Quill case from 1992, but other states have already adopted similar legislation and at least one U.S Supreme Court Justice has invited a reconsideration of that decision in light of the current proliferation of internet sales.

While McCleary and the three main budgets received most of the attention in 2017, myriad policy bills were also adopted throughout the regular session and the three special sessions, and our report details those of particular interest to the City of Spokane, and cities in general. We begin with the items contained in the City’s adopted 2017 Legislative Agenda, and then discuss other legislation of interest to the City, and cities in general.

We also offer thoughts for some of the key issues that remain unresolved as to how these requests by the City might be better framed and positioned in future sessions in order to provide the City with the best possible chance of ultimate success.

Thank you for the opportunity to serve as the lobbyists in Olympia for the City of Spokane during the long and memorable 2017 Legislative Session. We will certainly make ourselves available to elaborate further on any on the issues discussed in this report.

--Luke Esser & Nick Federici

27

Page 31 of 71 NEW BUSINESS #1.

City-Specific Priorities

Riverfront Park Bridges The City sought funding of $3.5 million from the state Capital Budget in 2017 for the renovation of two pedestrian suspension bridges in Riverfront Park. Capital Budget writers frequently asked the lobbying team and Councilmembers about what matching funds the City was providing and why the City didn’t make a WWRP application for these bridges. In response, materials were provided to show that city taxpayers had recently approved a large parks bond measure, which when added to other parks and utilities funds amounted to an overall city contribution of $19.9 million in bridge funding for Riverfront Park.

Ultimately none of the versions of the Capital Budget that passed either the House or Senate included funding for the pedestrian suspension bridges, though no Capital Budget was agreed to before the State legislature adjourned their Third Special Session. The City was successful in obtaining $300,000 for the renovation of the Triangle Truss Bridge (also located in Riverfront Park) in the state’s 2017-19 Transportation Budget.

We suggest that the development, in cooperation with the Parks Board, of a specific matching funding program for the Riverfront Park pedestrian suspension bridges in advance of future Legislative Sessions would enhance the chances of successfully obtaining Capital Budget funding in future years, whether through the WWRP application process or through the request of a direct appropriation.

East Central Community Center Dental Clinic Funding from the state Capital Budget was sought to match a $500,000 loan from the City of Spokane so that the East Central Community Center (ECCC), in partnership with a federally- qualified health center, could provide 6-8 chairs for low-income dental care and the City also supported a $2 million request by Providence Sacred Heart for a dental residency program.

All of the dental clinics we supported on behalf of ECCC and Providence Sacred Heart were both fully funded in every version of the Capital Budget – the original Senate proposal, SB 5086, which passed the Senate unanimously in March, the amended version of SB 5086 the House passed by a 96-2 vote in April, as well as a compromise proposal, Engrossed HB 1075, which passed the House on July 1st by a 92-1 vote.

However, the State Legislature failed to pass a final, agreed-upon version of the Capital Budget through the Third Special Session that concluded in late July, due to the political impasse between the House and Senate on resolving the water rights situation created by the state Supreme Court's Hirst decision. Though there is agreement between the House and Senate on a version of the Capital Budget that continues to adequately fund both of these clinics (at $500,000 for the ECCC, down from $750,000 in the original House budget, and $2 million for Providence Sacred Heart), the Senate will not act on this compromise until there is resolution on legislation ameliorating the Hirst decision.

28

Page 32 of 71 NEW BUSINESS #1.

Martin Luther King, Jr. Family Outreach Center The City supported a proposal by the MLK Center to expand its Early Childhood Education and Assistance Program capacity from 40 slots up to 100. During the Legislative Session the sponsoring organization of this project withdrew it from consideration, in favor of focusing on other priorities.

Transitional Housing & Services Programs For DV Victims Emergency funding of $325,000 was sought for a domestic violence shelter and transitional housing services for the victims of domestic violence, due to HUD’s reduction of funding and realignment of federal housing priorities. Though local legislators originally prioritized this funding request, difficulties by City and legislative staff in obtaining clear and detailed information from the organizational sponsors resulted in failure to obtain the desired funding. Priorities We Share With Other Cities

Supervision Of Property Crime Offenders Property crimes, especially involving autos, have steadily increased in the City of Spokane in recent years. While best practices for released property crime offenders indicate that supervision after release reduces recidivism and lowers crime rates, currently under state law the supervision of offenders who committed only property crime felonies is not allowed.

Development of legislation to deal with the supervision of property crime offenders in a thoughtful way began back in December, after a meeting with Sen. Mike Padden (R-Spokane Valley and Chair of the Senate Law & Justice Committee) following a field committee meeting in Spokane Valley. Sen. Andy Billig (D-Spokane) agreed to be the prime sponsor of a bill, SB 5539, to create a pilot program of supervision in Spokane County for offenders who committed certain auto-related felonies.

When Councilmembers Mumm and Waldref met with Rep. Mike Pellicciotti (D-Federal Way and Vice Chair of the House Judiciary Committee) in Olympia regarding SB 5539, Rep. Pellicciotti grew interested in the bill and soon developed a similar bill, HB 1976, that would create a similar plot program in Spokane County and in Federal Way District Court.

Councilmember Beggs and Mayor Condon both testified remotely in favor of SB 5539, and Police Chief Craig Meidl and Tony Hazel of the Spokane County Prosecutor’s Office made multiple trips to Olympia to testify in favor of both HB 1976 and SB 5539. Each bill made significant legislative progress. Both SB 5539 and HB 1976 passed out of their respective policy committees and received public hearings in their respective fiscal committees, though neither was able to advance through their respective fiscal committee in this tough budget year. But the ideas contained in those bills had made an impact, and were included in later legislation.

SB 5904 and SB 5934 were both omnibus criminal justice bills that contained many different provisions, and both bills included a statewide pilot program of supervision for auto-related felonies patterned on the original bills developed and advocated for by the City of Spokane. SB 5934 was actually alive until the last day of the Third Special Session, as it had passed the Senate

29

Page 33 of 71 NEW BUSINESS #1.

29-20 on June 30th, but concerns about other provisions in this omnibus bill made it too controversial for passage in the House.

Great progress was made in 2017 in both raising the profile of the issue of supervision for property crime offenders as part of a smart justice program, and in building support for the pilot as part of a potential omnibus criminal justice bill in the future. We suggest further efforts be made during the interim to gather support among other large cities (and the legislators who represent those cities) to build an even stronger coalition for 2018.

Cochran Basin CSO Project Funding from the state’s Hazardous Substances Tax (HST) has provided the revenue for projects funded through the Model Toxics Control Account (MTCA), which includes stormwater projects like the City of Spokane’s Cochran Basin CSO Project, which was awarded $4.8 million in stormwater grants in 2015. Unfortunately, reductions in the revenue generated by the HST led to the suspension in funding for $30 million worth of MTCA projects in the last biennium, including the Cochran Basin CSO Project.

We signed the City in as supporting HB 1663, which would have provided a surtax on the HST sufficient to restore funding for all stormwater projects that had seen their funding suspended, but while this bill passed out of the House Finance Committee, it died in the House Rules Committee.

All of the Capital Budgets adopted by either the House or Senate in 2017 included appropriations from other sources adequate to restore funding for the stalled $30 million worth of MTCA projects, though the failure of the State Legislature to agree on a new Capital Budget before adjourning the Third Special Session has left all of the MTCA projects in the same limbo as the rest of the $4 billion in projects reliant on the Capital Budget for funding.

Abandoned & Foreclosed Properties The City of Spokane brought forward to the State Legislature the issue of how municipalities can ensure that abandoned and/or foreclosed properties are properly maintained by the owners, particularly in cases of bank-owned foreclosed properties, and can effectively expedite the foreclosure process in order to place such properties back in the hands of an occupying owner. Because Spokane is far ahead of other jurisdictions in its operation of a foreclosure registry program, there were few other cities in a position to strongly advocate for solutions that went beyond where Spokane already is.

The Washington State Supreme Court's decision in Jordan v Nationstar in July 2016 placed strict limitations on the ability of financial institutions and loan servicers to enter homes for which foreclosure was not yet complete, exacerbating this situation. Even those financial institutions and servicers who previously were cooperating with the City's efforts to preserve properties and facilitate appropriately-brief foreclosure actions were stymied in their ability to take such action. As a result, in October 2016 Rep Tina Orwall (D-Normandy Park) began a discussion and negotiation process among all the interested and impacted organizations – financial institutions, consumers, municipalities, and state agencies – to seek a compromise solution to the situation. Rep. Orwall introduced HB 2036 and later HB 2057, and Sen. Mark

30

Page 34 of 71 NEW BUSINESS #1.

Mullet (D-Issaquah) introduced SB 5797, as "works in progress" to seek to resolve the issues covered by Rep. Orwall's work group. HB 2057 and SB 5797 passed their respective houses of origin unanimously, but failed to pass the opposite houses.

Councilmember Waldref, Loretta Cael from SNAP, Melissa Wittstruck and Brian McClatchey from City staff, and Matthew Folsom from the City Attorney's Office were particularly involved in dozens of hours of meetings – both internal as well as in person and via phone with the negotiation work group – seeking to find common ground. We worked with AWC, City of Tacoma, and a handful of other jurisdictions to develop language to promote best outcomes for municipalities, allowing local jurisdictions to implement solutions that would either require owners to properly maintain the property or else would put such power in the hands of the local jurisdiction to take appropriate action, given the limitations imposed by the Supreme Court's decision. Unfortunately, the representatives of the financial institutions and those of consumer legal interests were unable to find common ground on some very basic issues, and this impasse proved insurmountable for any solution to pass the full Legislature, including any that would simply address municipal concerns.

Public Records Act Reform Two bills that were strongly supported by the Association of Washington Cities to deal with abuses of the state Public Records Act and with the costs of administering the program were adopted with strong bipartisan majorities and signed by the Governor. Both HB 1594 and HB 1595 took effect on July 23rd and a description of the provisions of both bills follows:

1) HB 1594, Improving Public Records Administration *Directs the Attorney General to develop a consultation program to assist local governments with best practices for managing public records requests. The Attorney General’s office has started planning for that program and anticipates that they will have something operational later this fall. *Requires the Division of Archives and Records Management (State Archives) to provide training to local governments on records retention practices and to establish a competitive grant program for local governments to improve their information technology systems. *Provides a $1 surcharge on county recorded documents for funding the State Archives local competitive grant program, consultation program, and local trainings on records retention practice. The surcharge and the programs funded by the surcharge will expire in 2020, unless extended. *Requires a Joint Legislative Audit and Review Committee report on the effectiveness of the competitive grant program, the consultation program, and the records retention training services, with recommendations whether those services should continue beyond 2020. JLARC is just beginning the process with initial stakeholder conversations. They also anticipate providing additional guidance later this fall with data tracking likely to take effect for cities come January. *Authorizes State Archives to conduct a feasibility study for establishing a statewide Internet portal for public records management. *Requires local government to keep a log of each request with the following information: identity of requestor (if provided); date and text of request; description of records produced in response to request; description of records redacted or withheld and the reasons for redaction/withholding; and date of final disposition of the request.

31

Page 35 of 71 NEW BUSINESS #1.

*Requires agencies with actual budgeted public records costs over $100,000 to report certain performance measurements to JLARC.

2) HB 1595, Concerning Costs Associated With Responding To Public Records Requests *Amends the Public Records Act to allow cities to charge a small fee for providing copies of electronic records. *Prior to implementing the fee, a city must calculate the actual costs or find that it would be unduly burdensome to calculate the actual cost and then rely on the default charges in the new law. *The default charges in the bill are as follows: 10 cents per scanned page, 5 cents per four files or attachments, 10 cents per gigabyte, and these charges may be applied cumulatively. *Allows a city to charge a flat fee of $2 for providing copies when the estimated costs are expected to be $2 or more. * Creates the ability for cities to deny overwhelming computer generated “bot” requests. * Prohibits overly broad requests for all of a city’s records. * Creates a process for cities to apply a service charge to exceptionally complex requests. Priorities For Our University District Partners WSU Medical School The City strongly supported the request by Washington State University for $10 million to pay for increasing the number of medical students taught yearly up to 60. The adopted 2017-19 Operating Budget included the $10 million in new funding, on top of the existing base budget, to pay for the first two years of increasing the student population to 60. WSU will need to ask for an additional $10 million in new funding in the next biennium so that this additional increment of students will be able to complete the third and fourth years of their medical education program while the next cohorts of students begin their first and second years.

Regional Initiatives In Dental Education (RIDE) Program The City supported increased funding for the RIDE program, which is a collaboration between the University of Washington and Eastern Washington University, to increase teaching capacity and allow dental students to remain in Spokane for their second year of dental education (currently students study in Spokane for only their first year, and then transfer to the UW Seattle campus for their second year of studies). The adopted 2017-19 Operating Budget continued funding for eight students a year to receive their first year of education in Spokane, but did not include new funding that would have allowed students to remain in Spokane for their second year of dental education.

UW Medical School/WWAMI Program The City supported increased funding that would allow the University of Washington to increase the number of medical students taught in Spokane up to 80 per year. In the years leading up to

32

Page 36 of 71 NEW BUSINESS #1.

2015 the University of Washington’s WWAMI medical education program (which draws students from Washington, Wyoming, Alaska, Montana and Idaho) taught 40 students a year. In the 2015-17 Operating Budget funds were included to allow an additional 20 students to finish their first two years (of a four-year program). The 2017-19 Operating Budget included $5 million in new funding to pay for the full cost of four-year programs for 60 medical students, but funding was not provided to increase the number of students to 80. Priorities For Our Regional Partners

Public Facilities District Bond Refinancing We signed the City in as supporting HB 1201, which extends from 25 to 40 years the authorization for two local sales taxes by PFD’s for regional centers (convention and conference centers and special events facilities). There is no tax increase for taxpayers, as the state provides a rebate on state sales taxes to the extent of any increase in PFD sales taxes. This additional revenue stream will allow PFD’s to refinance projects and take advantage of current favorable interest rates. In particular, the Spokane PFD envisions being able to use funds freed up through refinancing for the proposed Sportsplex project in the North Bank Area. HB 1201 passed with large bipartisan majorities in both chambers, was signed by the Governor and became effective on July 23rd.

Other Legislation Of Interest To The City Of Spokane

WWRP Projects Four projects that the Parks Board requested state funding through the WWRP were in play at various stages of the legislative process in 2017.

1. Three Islands Spokane River Waterfront Access Project: Both the House and Senate Capital Budgets included a $1.0 million WWRP appropriation from the "Water Access" category for this highly-ranked project (No. 2 on the ranked list for "Water Access" projects).

2. South Gorge Trail Project: An application was submitted for $1.1 million in WWRP funding in the “Trails” category” for the construction of the South Gorge Trail and trailhead improvements at Glover Field Park and Peoples’ Park. The original House Capital Budget in April included full funding for this project, while the original Senate Capital Budget and the later House Capital Budget included partial funding of only $307,000. Achieving full funding for this project is a high priority for the City, as few alternative funding sources appear available.

A related item is a $235,000 reappropriation through the Department of Commerce to the Spokane River Forum (SRF) for the Glover Field boat launch, which was included in the original

33

Page 37 of 71 NEW BUSINESS #1.

Senate Capital Budget and the later House Capital Budget. SRF representatives have requested that the current language in the proviso be changed from requiring the SRF to be "in receipt of all permits by March 1, 2018" to "have applied for all permits by March 1, 2018" because the Army Corps of Engineers frequently take a very long time issuing permits and since construction must occur and be completed during the low-flow period of August-September, 2018.

3. Southeast Youth Sports Complex Neighborhood Park: The original House Capital Budget fully funded a $500,000 appropriation from WWRP in the "Local Parks" category, while the Senate Capital Budget and the later House Capital Budget included funding of $227,000. The $500,000 is needed to match $550,000 in local funds to complete the project, which includes the installation of a new playground with large multipurpose fields, restrooms, a picnic shelter and improved wheelchair accessibility in an underserved part of the city.

4. Riverfront Park Great Floods Play Area: The original House Capital Budget included a $500,000 appropriation from WWRP in the "Local Parks" category, while the Senate Capital Budget and the later House Capital Budget did not include any funding. The $500,000 is needed to match $1.0 million in voter-approved bonds and a federal LWCF grant to complete the project, which will turn a dirt parking lot into a destination playground in a downtown community that currently has only one outdated playground that lacks equipment for children older than pre-school age and doesn't serve children with disabilities.

We suggest continued efforts to stress the importance of the South Gorge Trail project to key legislators during the interim, including site visits, and encouraging neighborhood groups to join in the advocacy. When the 2017-19 Capital Budget eventually breaks loose, this will put the City in the best position of achieving full funding for this critical project.

Ban the Box/Fair Chance Act Different versions of this legislation passed each of the houses with bipartisan support. SB 5312, sponsored by Sen Baumgartner (R-Spokane) passed the Senate by a 25-24 vote, and HB 1298, sponsored by Rep Ortiz-Self (D-Edmonds) passed the House by a 68-30 vote. However, there was one major difference between the two bills that prevented final agreement -- the Senate version would pre-empt local jurisdictions from enacting legislation on this topic, even if they had already done so, and this broad preemption language was deemed unacceptable by the House.

Countywide Port Creation Bill HB 1347 would have allowed a countywide port to be formed by an initial ballot measure to the voters, and then elect port commissioners at a future election (rather than the current process of conducting both elections at the same time). We signed in Pro for the City on the bill, which passed out of the House 81-16 and passed out of the Senate Local Government Committee and Senate Rules Committee, but died on the Senate Floor.

34

Page 38 of 71 NEW BUSINESS #1.

First Class Cities Pension Legislation The City opposed SB 5116, legislation that would have created a system for the irrevocable transfer of funds for asset management from a First Class Cities Retirement System (FCCRS) to the Washington State Investment Board (WSIB), and directed WSIB to publish an annual report on those investment activities and provide a non-voting seat on the WSIB Board for a member of a FCCRS when three or more FCCRS have reached an investment management agreement with WSIB (there are currently only three FCCRS in the state: Seattle, Spokane and Tacoma).

Phill Tencick, the Retirement Director for the Spokane Employees’ Retirement System (SERS), travelled to Olympia to testify in opposition to SB 5116. He testified that the legislation would not reduce risk, but actually increase risk for SERS, that city retirement plans have a lower risk profile so that returns would naturally be lower than for WSIB, and that the beneficiaries and City elected leaders should be provided a choice in the decision to transfer (while SB 5116 provided no voice to beneficiaries or City elected leaders). SB 5116 did pass out of the Senate Ways & Means Committee, but died in the Senate Rules Committee.

Oil Transportation Safety We signed the City in as supporting HB 1498 and Councilmember Beggs testified remotely in favor of SB 5098, companion bills which would have allowed first class cities and the state Utilities and Transportation Commission to set speed limits for high-hazard flammable trains to address a local safety hazard. HB 1498 died in the House Transportation Committee and SB 5098 died in the Senate Transportation Committee.

HB 1611 and SB 5462 were omnibus bills to address broader issues of oil transportation safety. HB 1611 passed out of the House Environment Committee and House Finance Committee, but died in the House Rules Committee. SB 5462 died in the Senate Energy, Environment and Telecommunications Committee.

Tom Foley Memorial Highway Bill We signed in Pro for the City of Spokane on HJM 4002, requesting that State Route 395 be redesignated the Thomas M. “Tom” Foley Memorial Highway. The Joint Memorial passed out of the State House 69-29, but died in the Senate Transportation Committee.

Waste-To-Energy Plant HB 1334, Relating to the Energy Independence Act (voter-approved I-937 from 2006), is a 21- page bill that was mostly directed at promoting clean energy and reducing carbon emissions from coal and natural gas facilities, but in the process would have placed limits on waste incineration for energy. In particular, the bill would have prohibited the use of waste incineration to meet any new energy or capacity needs under the Energy Independence Act. HB 1334 died in the House Technology and Economic Development Committee.

35

Page 39 of 71 NEW BUSINESS #1.

Other Legislation Of Interest To Cities In General

Basic Law Enforcement Academy (BLEA) The Basic Law Enforcement Academy came into the 2017 session needing eight additional classes in a 2015-17 Supplemental Operating Budget (including one for the Spokane Academy) and six additional classes for the 2017-19 biennium. The Senate did not initially pass a Supplemental Operating Budget, and the initial House Operating Budget did not include adequate funding for the additional BLEA classes in the 2017-19 biennium. City leaders made clear to key state legislators in writing and through direct conversation the importance of funding the Spokane Academy in the Supplemental Budget. Ultimately the final Operating Budget did include adequate funding for the eight additional BLEA classes in the 2015-17 Supplemental Operating Budget (including the Spokane Academy) and six additional BLEA classes in the 2017-19 Operating Budget.

LEOFF II Pension Funding The Senate-passed Operating Budget from March cut funding for the state’s traditional 20% share of LEOFF II pension for local governments and also eliminated a revenue stream for local governments to fund a portion of their LEOFF II pension expenses through a share of fire insurance premium taxes. City elected leaders and the lobbying team in Olympia made multiple direct contacts in writing and in person with key state legislators to make sure they were aware such changes would involve a $2.3 million per year hit to the City’s budget. Ultimately, the final adopted state budget included the state’s traditional 20% share of LEOFF II pension funding for local governments and no reduction in revenue sharing with fire insurance premium taxes.

Human Trafficking Two bills to further address human trafficking received broad bipartisan support in the State Legislature and were signed into law by the Governor. HB 1079 creates a criminal no-contact order that can be issued by a court to prohibit defendants from contacting victims when charged with or convicted of human trafficking and promoting prostitution offenses. SB 5030 extends the statute of limitations for human trafficking and promoting prostitution offenses from three years to 10 years and broadens the definition of human trafficking and promoting prostitution offenses from “receiving money” to “receiving money or anything of value.”

Paid Family Medical Leave Paid family medical leave legislation, offering workers paid time off for the birth or adoption of a child, or for a serious medical condition of the worker or their family, was a heavily-debated issue throughout the Legislative Sessions, partially due to the threat of a strong initiative on the topic by organized labor interests. A large contingent of representatives from the business, labor, and legal communities met with legislative leaders almost daily for dozens of hours throughout the first half of the year, eventually reaching agreement in late June.

36

Page 40 of 71 NEW BUSINESS #1.

After original legislation failed to pass either House, the compromise was introduced as SB 5975, sponsored by Sen. Joe Fain (R-Auburn), passing the Senate 37-12, and the House 65-29, and was signed into law with great fanfare by Governor Inslee. This agreement completes work begun by former Spokane State Senator Lisa Brown, who sponsored legislation that passed in 2007 creating a paid family leave program that required most employers statewide to offer five weeks of paid time off for new parents. However, this original landmark law was never implemented because lawmakers hadn't been able to agree on a funding method.

This year's legislation offers eligible workers 12 weeks of either form of leave beginning in 2020, or 16 weeks for a combination of both forms of leave. An additional two weeks may be provided if there is a serious health condition with a pregnancy. Both employers and employees pay into the system, with weekly benefits calculated based on a percentage of the employee’s wages and the state’s weekly average wage (currently $1,082), and the weekly amount paid out capped at $1,000 per week. Workers who earn less than the state average would get 90 percent of their actual income.

Self-employed individuals could opt into the coverage, and would be required to pay the employee share of the premiums. Employers with 50 or fewer employees are exempt from paying the employer share of the premiums, and those companies that already offer paid family leave programs can opt out, as long as their programs are at least equivalent to the state program. The legislation applies to public sector employers under the same conditions as those in the private sector.

The program is financed by premiums of 0.4% of wages, with collection beginning on January 1, 2019. Employees will pay 63% of the premium, with the balance of 37% of the premium paid by the employers. For example, according to a financing and benefits calculator developed by the Senate, an employee who makes $50,000 a year would pay $2.42 a week, while their employer would pay $1.42 a week, resulting in a weekly benefit payment to the employee of about $703 when used.

Property Tax Revenue Growth Reform Cities and counties asked the State Legislature to replace the existing 1% limit on the growth of property tax revenues by local governments with a limit that takes into account inflation and population growth. The AWC strongly supported companion bills HB 1764 and SB 5772, which would have increased the limit factor for annual property tax increases to the sum of inflation as measured by CPI and population growth, up to a maximum of 5%. Both bills received well- attended public hearings, and HB 1764 passed out of the House Finance Committee, but died in the House Rules Committee, while SB 5772 died in the Senate Local Government Committee. School Siting Outside The UGB Multiple versions of legislation on this topic were considered by the State Legislature, to allow school districts to site schools outside Urban Growth Boundary, and to be served by municipal utilities at such locations. The City of Spokane was strong in its opposition to earlier versions of the legislation that allowed local school districts to take such actions without consultation with or

37

Page 41 of 71 NEW BUSINESS #1.

approval by impacted municipalities. Later versions of the legislation (including those that passed) corrected that situation, but we would have preferred to have had additional language that fully clarified the powers and accountability of all local municipalities. Spokane School District, at one point, was one of the strongest supporters of the legislation, but backed off on their advocacy upon conversations with representatives from the Spokane City Council, trusting in a strong inter-jurisdictional relationship to iron out any remaining concerns.

HB 1017, sponsored by Rep Bob McCaslin (R-Spokane Valley) passed the Legislature, but the portion that impacted Spokane was vetoed by the Governor in April. After significant additional discussions between the Legislature and Governor, the Legislature passed the same, vetoed language in HB 2243 (also sponsored by Rep. McCaslin), by a 78-15 vote in the House and 30- 19 in the Senate. Though this legislation allows a local school district to site a new school and the utilities to serve only that school outside the UGA, several limitations were placed on that authority at the request of the City of Spokane and the AWC: • the applicable school district must make a finding of the need of this action, and the suitability of the site "with the concurrence of the county legislative authority and the legislative authority of any affected cities"; and • that "the county and any affected cities agree to the extension of public facilities and utilities at the time of concurrence"; and • that if there is a request to expand the provision of utilities beyond that of the school site, it is required "that the county and any affected cities agree with the request".

The City of Spokane sought clarification on the definitions of "concurrence" and "affected cities," to ensure no confusion or unintended consequences, but the negotiation between the Legislature and Governor did not accommodate additional language.

Small Cell Siting & Permitting/5G Bill Throughout the session representatives of the telecommunications industry were advocating for SB 5711, informally known as the 5G Bill, which would have sped up the time taken to site and permit small cell facilities, limit the fees that cities can charge for the installation of small cell facilities inside city rights-of-way, required cities to allow attachment of small cell facilities on city-owned structures outside the city rights-of-way, and promoted the development of broadband in rural areas.

In response to this proposed pre-emption on city authority over city-owned property and city permitting processes, the AWC offered an alternative on behalf of cities. Under the AWC proposal, cities over 5,000 in population would enact a small cell deployment ordinance that outlines the standards and processes for issuing small cell permits, exempt small cell facilities from conditional use permits on existing poles, and would have no effect on previously-adopted franchises, permits or agreements.

SB 5711 passed out of the Senate Energy, Environment & Telecommunications Committee and the Senate Rules Committee, but despite significant lobbying efforts by the telecommunications industry it died on the Senate Floor.

38

Page 42 of 71 NEW BUSINESS #1.

Transportation Network Companies Bill (aka Uber Bill) The large Transportation Network Companies (TNC’s) advocated this year for SB 5620, which would have created a statewide regulatory program for TNC’s under the state Department of Licensing. The legislation provided requirements for drivers and vehicles that operate within a TNC network, and a $5,000 statewide annual fee per TNC. Most importantly for cities, SB 5620 largely pre-empted local regulation of TNC’s, except for generally applicable business requirements, such as requiring a business license. SB 5620 passed the Senate 34-15, but died in the House Labor & Workforce Standards Committee.

Capital Budget As mentioned above, the failure of the State Legislature to agree on a 2017-19 Capital Budget has left approximately $4 billion in statewide projects in limbo. Reforms to the Public Works Trust Fund were made in HB 1677, though funding for that program is much up in the air as is the case for all other programs reliant on funding for an adopted Capital Budget. Conversations continue on the water rights issue involved in the Hirst case (which Senate Republicans insist must be resolved before they will allow a Capital Budget to be passed), so it is possible that a Capital Budget could emerge in the coming months. That means it will be important for the City of Spokane to continue to advocate for its Capital Budget priorities with key legislators throughout the interim, to remain vigilant and “at the table” as any and all Capital Budget discussions occur.

--END--

39

Page 43 of 71 NEW BUSINESS #1.

THE ARLEDGE GROUP State Legislative Advocacy Services Proposal

City of Sammamish May 22, 2018

Cody Arledge

Page 44 of 71 NEW BUSINESS #1.

The Arledge Group

May 21, 2018 Debbie Beadle Sr. Executive Assistant, City Manager’s Office 801 228th Ave SE Sammamish, WA 98075

RE: Request for Proposal for State Legislative Advocacy Services - City of Sammamish

Dear Ms. Beadle and the selection team: Thank you for the opportunity to submit my proposal to provide state legislative advocacy services for the City of Sammamish. I am excited about the prospect of playing a lead role in advocating for the City of Sammamish’s legislative priorities in 2018 and beyond. My work on transportation, public transportation-oriented development, the capital budget, and local tax issues has been the most rewarding work of my career. I am also excited about the City of Sammamish developing positive relationships with Governor Inslee, Speaker of the House and the future Senate Majority Leader, as well as other legislative leaders. Given the city’s leadership, the challenges and opportunities and the leadership we have in Olympia at this time, I believe we can accomplish great things in the coming years. Executive Summary

The following proposal provides relevant information regarding the methodology, qualifications, expertise, experiences and examples of demonstrated successes for myself and my team member, Jeff DeVere.

We would be honored to work with the City of Sammamish to capitalize on the many strengths of the Council and to help create meaningful and productive relationships in Olympia to further your legislative agenda. Cody Arledge has more than 20 years of legislative and electoral experience including working with clients to design, implement, and manage legislative and political strategies, effectively communicating and advocating complex policy issues and securing funding before the Legislature, as well as state and local government agencies, and negotiating successful resolution of issues. Jeff DeVere has 28 years of state government experience, relationships and successes that have resulted in long-standing trusted relationships with key decision makers in Olympia, as well as with key stakeholders inside and outside Olympia. Both are highly respected for collaborations on a variety of issues across the political spectrum.

Cody Arledge will serve as the lead for advocacy services as the principal of the Arledge Group.

1 Proposal Response – City of Sammamish

Page 45 of 71 NEW BUSINESS #1.

The Arledge Group

Our contact information is:

The Arledge Group PO Box 815 Olympia, WA 98507 360-359-1238 [email protected]

Methodology Cody Arledge will lead the Arledge Group consisting of Cody and Jeff DeVere. Cody and Jeff will work in close collaboration with the City of Sammamish including the Legislative Committee, City Council, City Manager and staff, city partners and will serve as the lead contractor in developing and maintaining relationships between the City, the Governor, State Agency and Legislative Leadership. Cody and Jeff will lead and support the development and execution of a comprehensive legislative strategy to secure the City’s legislative goals in the following areas:

1. Salmon Passage Culvert Improvements; 2. Double Taxation of Annexed Park District Areas; 3. Public Transportation /Development/Options; and 4. Public safety (Police and Fire protection), Parks and Recreation, Public Works, Community Development, and other related issues as identified by the City. The Arledge Group proposes the following Scope of Services and Duties: • In-depth development and drafting of legislation, budget provisos, executive orders, agency rules and related amendments as needed on City priorities. • Assist the City in the ongoing development and execution of political strategy to successfully gain bipartisan support to accomplish the City’s legislative goals. Assist the City in development of strategic messaging and talking points to achieve those goals. • Advocate for the City of Sammamish’s positions with the legislative and executive branches of Washington State government and appointed officials to develop support for the City’s policy and funding goals, as determined by the City of Sammamish in consultation with the Arledge Group.

• Maintain a strong presence for the City in Olympia and legislative districts during and outside the legislative session.

2 Proposal Response – City of Sammamish

Page 46 of 71 NEW BUSINESS #1.

The Arledge Group

Methodology cont. • Assist the City of Sammamish in relationship development with state government leaders in key agencies where the City will focus its policy and legislative objectives; build and maintain coalitions with business, labor, environment, and other local community groups to build broad support for the City of Sammamish objectives. • Provide support to the City, including the Mayor, Council, City Manager and Legislative Committee, by identifying key legislation, state programs, and budget issues that impact the City and its policy priorities and providing continuous and consistent monitoring and intelligence-gathering. • Develop with the City Council and contract team information, data, and stories and disseminate to legislators to inform their understanding of key issues and the City’s legislative priorities and provide the Council with necessary information from these interactions. • Work to build and maintain coalitions and develop relationships with business, labor, human services, and other community groups. • Provide continued road mapping of legislative targets for City priorities, facilitate legislator meetings with the Mayor, City Manager and City Council throughout session and in the interim. • Coordinate with the City Council and contract team to prepare for the 2019 legislative session, including analysis and research for 2019 priorities and providing a strategic plan for legislative and coalition engagement to pass 2019 priorities. Coordinate and participate in weekly discussions with the City and lobbying team to prepare for upcoming committee hearings and legislative action on key bills and budget items relevant to City’s legislative priorities. • Identify and track political events and legislation that could impact the City’s policy and funding priorities. • Provide state legislative and state regulatory testimony, and coordinate and assist with City staff, Mayor and City Council participation in legislative committees and meetings on City priorities.

• Assist as needed with activities related to high-priority City of Sammamish special events such as lobby days, delegation meetings and legislative receptions. • Assist with developing and presenting weekly written reports to the Mayor and City Council that include the top priorities and actions that happened the previous week and that will happen in the coming week.

• Provide a final written report to the Mayor and City Council, summarizing activities and accomplishments at the conclusion of the 2019 legislative session.

3 Proposal Response – City of Sammamish

Page 47 of 71 NEW BUSINESS #1.

The Arledge Group

Methodology cont. • Work during the interim with city staff, legislative committee, and City Council to prepare for the 2019 legislative session. This will include issue analysis, research, and identification for 2019; outlining implementation plans for goals; legislator education; coalition building; and other activities to continue to strengthen outcomes in the issue areas outlined in the final contract agreement. • Be available to city staff and the council for direct communication and access. • Comply with all state laws and regulations, including but not limited to lobbyist registration and related filings Qualifications Cody Arledge, Principal, The Arledge Group Cody is exceptionally suited to represent the City of Sammamish’s policy priorities. Cody has more than 20 years of legislative and electoral experience working with clients to design, implement, and manage legislative and public policy strategies; effectively communicating and advocating complex policy and funding issues on behalf of clients before the Legislature; and negotiating successful resolution of issues. He has long-standing trusted relationships with key decision makers in leadership in Olympia, as well as with key stakeholders inside and outside Olympia. He is highly respected for his collaborations on a variety of issues across the political spectrum. For almost two decades, Cody has represented entities before the Legislature to achieve their funding and policy goals. He understands the range of issues the City is facing from providing public safety and emergency services and investing in public health, natural resource and environment concerns to completing critical transportation and utility infrastructure investments for economic growth. Cody has worked with clients to pass critical legislation and funding. His advocacy on behalf of his clients has included human services, homelessness and housing affordability, social safety-net budget priorities, public safety, land use and environment, capital budget and transportation issues. He has served as lead on relationships between his clients, the Governor, the Speaker and the Senate Majority Leader. Cody also sits at numerous land use, climate change and environment, transportation, and affordable housing advocacy coalition tables. Cody Arledge has one of the most successful political and legislative track records because of his knowledge and commitment to the issues, his talent for creating and implementing successful short and long term strategic plans, his ability to build coalitions and mediate difficult issues and his strong relationships with legislators, staff, agency directors and the advocacy community. In addition to his policy work, Cody’s engagement in countless political, community

4 Proposal Response – City of Sammamish

Page 48 of 71 NEW BUSINESS #1.

The Arledge Group

Qualifications cont. and initiative campaigns has made him one of the most highly respected and sought after political strategists in Washington State. For his clients, Cody plays a critical role in developing annual and bi-annual legislative agendas, crafting and implementing legislative and political strategies, and participating in regular weekly update and strategy sessions. He understands the issues the City of Sammamish faces to enhance services to the community. See Attachment – Cody Arledge Resume Jeff DeVere Jeff has over 28 years of experience working in state government at the operational, management and executive levels. From 1990-2015, he worked for the Washington State Patrol in multiple capacities. As the Director of Government and Media Relations, Jeff served as the liaison to legislators, local governments, industry groups and the media. Jeff coordinated the agency’s legislative priorities and agendas, researched and drafted legislation, advocated for agency priorities to both support and stop legislation, presented agency request legislative proposals at committee hearings and assisted legislators in developing several policy initiatives. He developed successful working relationships with state legislators and staff, county and city governments, the media, public and private stakeholders, and various citizen organizations to collaborate in solving issues to enhance public safety and the services the state patrol provides to Washington State Citizens. Jeff led driving safety education campaign efforts, oversaw Washington Administrative Code maintenance and revision processes, and worked with multiple groups to build consensus and practical solutions to many issues such as Driving Under the Influence, occupant protection, transportation infrastructure design safety and cellular phone use. His successful efforts at the Washington State Patrol resulted in significant changes in the State regulation of trucking companies, which became a national model trucking safety program that reduced costs for the industry. After retiring from the Washington State Patrol, Jeff served as the Deputy Assistant Director, co-managing the workers’ compensation program, at the Washington State Department of Labor and Industries. He developed comprehensive knowledge of the impact worker injuries can have on public and private entity budgets and helped many groups improve their worker safety and subsequent costs. More recently, Jeff served as the Deputy Director at the Washington State Department of Licensing. At both the Department of Labor and Industries and the Department of Licensing, Jeff negotiated changes to long-standing agency practices that provided benefits for businesses, stakeholders and citizens. As the Licensing Deputy Director, Jeff oversaw the agency legislative priorities to include the successful passage of the REAL ID Act, agency rule-making and budget development proposals. Jeff also managed the day to day operations of the agency, providing licensing for over seven million vehicles, over six million drivers, and 44 professions. Jeff has

5 Proposal Response – City of Sammamish

Page 49 of 71 NEW BUSINESS #1.

The Arledge Group

Qualifications cont. extensive organizational management, leadership, and strategic planning skills that he has used to successfully improve performance and results everywhere he has been.

As a result of Jeff’s unique and varied agency experiences, Jeff has developed strong working relationships with leaders across multiple state, county and local agencies, as well with various industry groups. Jeff has built and maintained a reputation of integrity and hard work. He has a thorough understanding of state government, the legislative process, and the methods to navigate process and procedures to assist clients attain their objectives. See Attachment- Jeff DeVere Resume Experience a. Outcomes Cody Arledge currently represents the Cities of Seattle and Tumwater. Critical outcomes, which he has helped to advance include Washington State's largest ever transportation package in 2015 – a $16 billion package which also provided $54 billion for expansion of light rail, critical affordable housing and transit oriented development policies, significant funding in the capital budget for the Housing Trust Fund and Homeless Innovation Center. Cody played a crucial role in developing legislative agendas for clients, crafting legislative and political strategy, and providing weekly legislative updates. Cody has an in-depth knowledge of local government policy priorities and has been instrumental in crafting successful legislative and political strategies including successful efforts to obtain millions in funding for badly needed infrastructure and transportation improvements for cities the last two biennium. In addition to the cities of Seattle and Tumwater, Cody has represented clients in the legislature on issues of transportation, infrastructure, public safety, climate change, energy, environment and land use, including Futurewise, Transportation Choices Coalition, Samish Indian Nation, and the Alliance for Gun Responsibility.

Jeff DeVere oversaw the development and implementation of the Department of Licensing’s legislative priorities and agenda in 2016, 2017, and 2018, which included the request and successful passage of the REAL ID Act in 2017. Since 2005, Washington State has not gained compliance with federal identification requirements to board commercial aircraft and enter military facilities. The passage of this legislation was critical to provide residents of Washington access to commercial aircraft utilizing state identification before the 2020 federal deadline. Since passage of the REAL ID act Jeff oversaw the project implementation, which included agency rule-making, budget development proposals and appropriations to implement and gain Department of Homeland Security Certification.

6 Proposal Response – City of Sammamish

Page 50 of 71 NEW BUSINESS #1.

The Arledge Group

Experience cont. Jeff has also been successful in the planning, budget acquisition and implementation of large Information Technology projects at the Department of Licensing. Over the last four years, the Department of Licensing has developed requirements, obtained Governor’s office support, and legislative appropriations of nearly $90 million for technology modernization projects to replace aged vehicle, professional licensing and driver licensing systems. In 2016, both the vehicle system responsible for licensing over six million vehicles and the professional licensing system were successfully implemented on-time and under budget. Jeff oversaw the projects, reporting and accountability requirements and the implementation of these systems that nearly every resident in Washington State utilizes.

References Cody Arledge City of Seattle Lily Wilson-Codega, Director Office of Intergovernmental Relations [email protected] 206-255-8707

City of Tumwater John Doan, City Manager [email protected] 360-754-4120

Hilary Franz, Commissioner of Public Lands Washington State Department of Natural Resources [email protected] 206-734-9729 Jeff DeVere

Janice Lucero, President and CEO MVD Express (505) 259-6793 [email protected]

7 Proposal Response – City of Sammamish

Page 51 of 71 NEW BUSINESS #1.

The Arledge Group

References cont. Sheri Call, Executive Vice President Washington Trucking Associations (253)-838-1650 [email protected] Mayor Steve Peterson City of Liberty Lake, Washington (509)990-0509 [email protected]

Chief John R. Batiste Washington State Patrol (360) 951-3314 [email protected]

Jennifer Ziegler, Principal Jennifer Ziegler Public Affairs, former Senior Transportation Policy Advisor to Governor Gregoire (360) 280-0082 [email protected]

Client List

Cody Arledge

City of Tumwater

City of Seattle

Washington State Convention Center

Amalgamated Transit Union Legislative Council

Cypress Creek Renewables

Futurewise

Renewable Northwest

Samish Indian Nation

Transportation Choices Coalition

United Food & Commercial Workers Local #21

Washington State Data Center Competitiveness Coalition

8 Proposal Response – City of Sammamish

Page 52 of 71 NEW BUSINESS #1.

The Arledge Group

Client List cont.

Jeff DeVere

City of Liberty Lake (Contract Pending)

MVD Express (Consulting)

Washington Trucking Association (Consulting) Pricing The Arledge Group is very eager to partner with the City of Sammamish. We propose an 18 - month contract, beginning on July 1, 2018 with a $6840 monthly retainer.

9 Proposal Response – City of Sammamish

Page 53 of 71 NEW BUSINESS #1.

CODY%ARLEDGE% P.O.$Box$815,$Olympia,$Washington$98507$•$(360)$359@1238$•[email protected]$ $ $ PROFESSIONAL%EXPERIENCE%

$ % Johnson%Arledge%Strategies$ $ $ $ $ $ $ $ $$$$$$$$$$$Olympia,%WA% Principal%% % % % % % % % % % %%%%%%%%%%%January$2010@present$ •! Works$closely$with$clients$to$develop$policy$priorities$and$effective$political$and$legislative$strategy.$$% •! Advocates$for$clients’$positions$with$elected$officials,$staff$and$coalition$partners$at$all$stages,$from$policy$ development$to$law$passage$and$administrative$rulemaking.$ •! Facilitates$effective$relationships$between$clients$and$elected$officials,$staff$and$other$interested$ stakeholders.$$ •! Clients$include$the$City$of$Seattle,$Transportation$Choices$Coalition,$United$Food$&$Commercial$Workers$ Local$21,$the$Washington$State$Democratic$Party$and$the$Washington$Alliance$for$Gun$Responsibility.% $ Sheet%Metal%Workers,%Local%66,%AFLHCIO$ $Olympia,%WA% Director%of%Governmental%Affairs% September$2007@present% •! Leads$all$aspects$of$state$and$federal$legislative$program,$including$legislative$agenda$development,$political$ endorsements$and$coordinating$member$involvement$in$the$legislative$and$political$process.$$ •! Works$closely$with$the$environmental,$labor$and$business$communities$to$develop$support$for$common$ goals,$like$the$$1.8$Billion$2012$Jobs$Now$package,$capital$budget$priorities,$transportation$and$overall$job$ creation.$% •! Advises$the$executive$board$on$the$most$effective$ways$to$engage$in$the$political$process,$including$ endorsements$and$member$engagement$with$their$local,$state$and$federal$elected$officials.% % Washington%House%of%Representatives% % % % % % %%%%%%%%%%%Olympia,%WA% Democratic%Caucus%Staff$ $ $ $ $ $ $ %%%%%%%%%%December$2006@August$2007% •! Engaged$with$a$broad$array$of$stakeholders$to$develop$Caucus$legislative$priorities.$$ •! Policy$research,$analysis$and$development$for$the$Judiciary$committee.$ •! Provided$technical$and$strategic$advice$to$stakeholders$and$Caucus$leadership.$$ % Washington%State%Council%of%Firefighters,$$ $ $ $ $ $$ $$$$$$$$$$Olympia,%WA%% Director%of%Government%Relations% % % % % % %%%%%%%%%%%%%%January$1997@January$2002% •! Developed$legislative$agenda$and$strategy$in$conjunction$with$the$membership$and$executive$board.$ •! Coordinated$lobbying$efforts$at$local,$state$and$federal$levels.$ •! Developed$and$implemented$political$action$program$at$the$state$and$local$levels$including:$training,$grass$ roots$lobbying$program;$endorsement$process$and$PAC$development$and$fund$distribution.$$ •! Negotiated$contracts$with$Fire$District$Commissioners$as$part$of$Executive$Board$member$duties.$ $ $ City%of%Tumwater%Fire%Department$ Tumwater,%WA%% Captain% % % % % % % % % %%%%%%%%%%%%%October$1986@October$2002$ •! Command$officer,$including$emergency$incident$command.$ •! Respond$to$all$types$of$fire$and$medical$emergency$calls.$ •! Oversee$training$of$firefighters$and$paramedics.$ $ EDUCATION%

$ The%Evergreen%State%College,%Olympia,%WA$ 2006H2009$

Page 54 of 71 NEW BUSINESS #1.

JEFF DEVERE

6723 Prairie Ridge Drive Northeast, Olympia, Washington 98516  (360) 250-9627  [email protected]

PROFESSIONAL PROFILE

Government Affairs professional with 28 years of state agency and legislative experience. Skilled at advancing legislative interests on politically sensitive matters, organizational and media communications, and strategic leadership. Excellent communication and people skills, thorough understanding of government processes, and a proven aptitude to analyze and translate complex issues to negotiate and realize effective solutions. Effective project management and oversight of large technology modernization improvements including statewide licensing systems.

PROFESSIONAL EXPERIENCE

DE VERE PUBLIC AFFAIRS AND CONSULTING Owner | January 2018 to present

• Provide public affairs services in legislative advocacy, government relations, consulting and strategic communications. Clients include MVD Express, Washington Trucking Association.

WASHINGTON STATE DEPARTMENT OF LICENSING Deputy Director | May 2016 to Jan 2018 • Strategic and operational leadership of Washington’s second largest revenue collecting agency, overseeing the collection of over $2.9 billion in taxes and fees annually, policy development and the licensing of 7 million vehicles, 6 million driver licenses, and 44 profession licenses each year. • Directed the development and implementation of legislative agendas, coordination with governor’s office, state agencies and stakeholders and the coordinated response to issues by DOL programs. • Provided strategic and day-to-day leadership in the successful implementation of driver’s license card issuance and vehicle license system technology modernization projects. • Worked extensively with County auditors and vehicle licensing sub- contractors who served as agents of the state providing vehicle licensing services and revenue collection. Built and maintained productive relationships and communication strategies resulting in effective program and fiscal policies benefitting county and state government. • Executive sponsor in the compliance with United States Department of Justice and Department of Transportation expectations regarding language service access for licensing customers, implementation of REAL ID to include the passage of necessary legislation and substantial statewide customer wait time reductions at Driver Licensing Offices.

WASHINGTON STATE DEPARTMENT OF LABOR AND INDUSTRIES Deputy Assistant Director | Feb 2015 to May 2016 • Co-managed the nation’s sixth largest worker’s compensation insurance program providing insurance for over 2.4 million workers and 166,000 employers, which realized $515 million in system savings in 2015 to Washington State Employers and employees. • Served on the agency leadership team partnering with other executives to solve problems and set agency strategic direction. • Improved agency performance to comply with Department of Justice and Department of Labor agreements regarding access to services for injured workers with limited English proficiency.

WASHINGTON STATE PATROL Assignments from 2004 -2015 listed | 1990 to 2015

Government and Media Relations Commander • Liaison to legislators, governor’s office, local governments, industry groups, citizen/community groups and the media.

Page 55 of 71 NEW BUSINESS #1.

JEFF DEVERE Page 2

• Developed and implemented the legislative agenda for the Washington State Patrol (WSP) on a range of issues including traffic safety issues such as impaired driving and vehicle collisions, Crime Lab services, Commercial Vehicle safety program improvements, and Fire Marshall services. Coordinated the legislative activities of the WSP, which included monitoring and tracking legislation pertaining to multiple topics, including transportation, public safety, and general government. Improved relationships with the governor’s office and the Legislature, which led to increased budget allotments and employee resources contributing to increased public safety. • Coordinated agency community and media communications program. Represented the agency to media for crisis situations and directed the assistance and training to agency personnel responsible for publishing agency media releases and answering media inquiries. • Implemented communication strategies and public education campaigns to gain public support and compliance with safety initiatives such as seat belt usage, commercial vehicle safety, and the reduction of impaired driving.

Human Resources Division Commander • Directed agency human resource staff, management strategy, and divisional operational plan to meet the legal, operational, and customer satisfaction requirements for a public agency of over 2,100 employees in diverse classifications. • Oversaw all aspects of personnel recruitment, polygraph, and background investigations, medical and pre- hire psychological examinations. • Instituted safety and medical review process leading to a 50% reduction in work days lost across the agency. • Department of Retirement Systems Retirement Advisory Committee member.

Field Operations District (Regional) Commander • Managed all logistical and operational functions, and more than 120 commissioned (Troopers) and support personnel assigned within Pierce and Thurston counties. • Collaborated with district staff, peer commanders, other public agencies, private organizations citizens, and stakeholders, to achieve increased public safety. • Provided leadership and critical incident management for two incidents involving officers killed in the line of duty.

AWARDS • 2015 GOVERNOR’S DISTINGUISHED MANAGER AWARD RECIPIENT - Annual award that recognizes managers in state government who demonstrate extraordinary leadership through performance results in the previous year. Elected and served as Secretary/Treasurer for 2015 and 2016

EDUCATION Federal Bureau of Investigation National Academy Graduate level courses certified by the University of Virginia Leadership and Police Management Graduate, 2008.

Central Washington University Ellensburg, Washington Bachelor of Science, Finance, 1989

MEMBERSHIPS AND RELATED ACTIVITIES Board Member, WSDOT Memorial Foundation Member, Washington Highway Users Federation Member, Federal Bureau of Investigation National Academy Associates Member, Governor’s Distinguished Manager’s Association

Page 56 of 71 NEW BUSINESS #1.

WORK SAMPLES FOLLOW

Page 57 of 71 NEW BUSINESS #1.

Arledge Group 2018 Washington State Legislature Update City of Tumwater February 17, 2018

Week of February 12 to 16 Highlights & February 19 to 23 Updates

There remain only three weeks left in the 2018 regular legislative session until its scheduled sine die on March 8. February 14 was the last day for chambers of origin to pass their own bills off the floor in order to proceed to the opposite chamber for consideration. The next cut off date is policy committee cutoff for the opposite chamber on February 23. This is the last day for policy committees to pass out bills from the opposite house. The fiscal committee cutoff for bills from the opposite house is February 26.

It is important to keep in mind that any bill deemed NTIB (necessary to implement the budget) can be exempt from these cut off deadlines. It is also important to note that "dead" bills can be brought back to life through either extraordinary procedural maneuvers or creative amendments on other bills moving through the process.

Below is a summary of the highlights from this week and events for next week.

Budget

Revenue Forecast Higher

On February 15 the state's economic and revenue forecast was released by the Washington State Economic and Revenue Forecast Council. The forecast showed a significant boost from projections. Combined with forecast changes in other revenue sources, the total general fund-state (GF-S) forecast increase for the current biennium is $647 million. The increase for the 2019-21 biennium is $671 million.

The positive news from the revenue forecast quickly turned to conversations regarding the best use for this revenue. House Majority Leader Pat Sullivan (D-Covington) stated House Democrats would release a plan to lower property tax rates. Senate Ways & Means Chair Christine Rolfes (D-Bainbridge Island) released this statement that the revenue will allow for property tax reduction in the supplemental budget plan released on Monday, February 19.

Supplemental Budgets To Be Released

During this short session, adjustments made to the enacted 2017-19 biennium operating, transportation and capital budgets are done through supplemental budgets. Next week the supplemental budgets will be released. The Senate proposals will come out first on February 19 followed by the House.

New Revenue

There are still several new revenue sources being considered this session, including the below legislation.

Page 58 of 71 NEW BUSINESS #1.

Carbon Emissions Tax

This week, former US Secretary of State John Kerry was in Olympia to provide support for Governor Inslee's requested carbon tax bill, SSB 6203. This bill would impose a new tax of $12 per metric ton of carbon emissions beginning in July 2019. In 2021 the tax would increase $1.80 per ton each year until capped at $30 a ton. The bill received a public hearing in Senate Ways & Means on February 15.

Capital Gains Tax

Capital gains tax legislation HB 2967 had a public hearing on February 16 and is scheduled for an executive session on February 19 in the House Finance Committee. The legislation imposes a 7% tax on long-term capital gains. It also funds a reduction in the state's property tax levy and the senior citizen, disabled persons, and qualifying veterans property tax exemption.

Business & Labor

B&O Tax Relief for Rural Manufacturers

HB 2947 plans to provide business & occupation tax relief for rural manufacturers. The bill will have a public hearing on February 16 with executive session planned for February 19 in the House Finance Committee. The bill provides a preferential B&O tax rate for eligible manufacturers that would begin in January 2020.

Fair Chance Act

The "Fair Chance Act" (2SHB 1298) will have a February 19 public hearing and February 21 executive session in the Senate Labor & Commerce Committee. This bill prohibits employers from asking about a job applicant's prior criminal background until the employer has established the applicant is otherwise qualified for the position. Exemptions, such as for law enforcement and work with children, are included.

Sexual Harassment & Assault Prevention

SSB 5996 is designed to reduce sexual harassment and sexual assault in the workplace. It had a public hearing on February 15 and executive action is scheduled for February 22 in the House Committee on Labor & Workplace Standards. In the same committee SB 6471, which is designed to improve the workplace by developing model policies and best practices to prevent sexual harassment, had a February 15 public hearing and is scheduled for executive action on February 20. SSB 6313 would prevent employee contracts that limit an employee's right to file a sexual harassment action. It unanimously passed the Senate on February 14. It has a public hearing on February and executive session on February 22 in the House Labor & Workplace Standards Committee. EHB 2759, which establishes a Women's Commission, passed the House on February 13 with a 65-33 vote. It has a public hearing on February 19 and executive session on February 21 in the House State Government, Tribal Relations & Elections Committee.

Transportation

Transportation Benefit Districts

There was a February 15 public hearing in the Senate Local Government Committee on HB 1606. The bill would require transportation benefit districts to hold a public hearing prior to imposing fees or charges by a vote of the governing board. Also impacting transportation, a recent federal budget proposal would eliminate federal funding for planned Washington State transit lines. As noted in this Seattle Times article, eight transit projects in the state would lose funding under the proposal.

Page 59 of 71 NEW BUSINESS #1.

Autonomous Vehicle Work Group

SHB 2970, establishing an autonomous vehicle work group, passed the House (96-2) on February 14 and has a February 19 public hearing in the Senate Transportation Committee.

Elections

Voting Rights Act legislation (ESSB 6002) was passed out of the House State Government, Elections & Information Technology Committee on February 15. This bill creates a state Voting Rights Act to protect the equal opportunity for minority groups to participate in local elections. It also creates a cause of action and authorizes courts to order appropriate remedies for a violation of the Act, including redistricting. Finally, it authorizes local governments to change their election systems to remedy violations of the Act.

Environment

The House passed (50-48) greenhouse gas emission reduction legislation E3SHB 1144 on February 14. This legislation requires the state's Department of Ecology and Department of Commerce to provide a per capita and greenhouse gas emissions report to the governor and legislators. Among other things, the bill requires the calculation of greenhouse gas emissions from wildfires in Washington State. It has a February 21 public hearing in the Senate Energy, Environment, & Technology Committee.

Health Care

Reproductive Health Care

SSB 6219 was passed out of the House Committee on Health Care & Wellness on February 16. This legislation requires health carriers to cover contraceptives without cost-sharing. It also requires health plans that cover maternity care to cover voluntary termination of a pregnancy. SSB 6102, enacting the Employee Reproductive Choice Act, was passed by the Senate with a vote of 26-21 (2 excused) on February 12 and has a February 22 public hearing followed by an executive session in the House Judiciary Committee. This legislation makes it an unfair practice for an employer to not provide employees contraceptive coverage at no cost to the employees. It also makes it an unfair practice for an employer not regulated by the state due to federal preemption to not comply with Affordable Care Act and federal rules on barrier-free access to contraceptive coverage.

Rural Health Care Access

The House unanimously passed ESHB 2408 on February 14 and it has a February 19 public hearing in the Senate Health & Long Term Care Committee. This legislation requires for plan years beginning in January 2020, a health carrier offering a health plan approved by the School Employees Board to offer a qualified health plan in counties where no qualified health plans are offered on the Health Benefit Exchange. It also allows an individual until December 2019 to purchase a health plan outside of his or her county of residence, but within same geographic rating area, under certain circumstances.

Drug Take Back Program

ESHB 1047 creates a system for safe and secure collection and disposal of unwanted medications. The bill has a public hearing on February 19 in the Senate Health & Long Term Care Committee.

Health Benefit Exchange

On February 12 the House passed SHB 2516 with a 58-40 vote. It was referred to the Senate Health & Long Term Care Committee and has a public hearing scheduled for February 20. Among other things, this

Page 60 of 71 NEW BUSINESS #1.

legislation removes all references to the Affordable Care Act found in the Health Benefit Exchange (Exchange) statutes. It also allows an assessment on insurers that is imposed only if the funds are insufficient to fund Exchange operations for the following calendar year, to include three months of additional operating costs.

Law & Justice

Legal Financial Obligations

E2SHB 1783 was passed out of the Senate Law & Justice Committee on February 15. The intent of the legal financial obligations bill is to prioritize victim restitution and give judges the ability to reduce or waive other fees and fines if a defendant is found to be indigent at the time of sentencing.

Eliminating the Death Penalty

On February 14, the Senate passed SB 6052 to eliminate the death penalty with a vote of 26-22 (1 excused). The bill replaces the death penalty with life imprisonment without possibility of release or parole as the sentence for aggravated first-degree murder. It is now in the House Judiciary Committee and has a public hearing on February 20 and executive sessions on February 22.

Tribal

Fuel Compacts

Fuel compact legislation SHB 1063 was passed with a vote of 52-46 on February 13. It has a February 19 public hearing in the Senate Transportation Committee. Among other things, this bill allows the Department of Licensing to enter into fuel tax agreements with certain federally recognized tribes with lands held in trust.

Tribal Compact Schools

On February 13, the Senate passed (44-3, 2 excused) SSB 6474. It has a February 19 public hearing in the House Education Committee. This bill creates a pilot project for tribal compact schools. Among other things, the pilot would explore and implement accommodating cultural and agricultural events.

City of Tumwater

Upcoming Legislative Events

Human Services & Corrections (Senate) - SHR 2, JACB - 2/19 @ 1:30pm

 E2SHB 1570 - Public Hearing - Concerning access to homeless housing and assistance.

Bill # Status Sponsor Priority Position SHB 1067 H Approps Ormsby Monitoring Neutral (ESSB 5048) 2SHB 1075 H Rules X Tharinger Monitoring Neutral (ESSB 5086) SHB 1147 H Trans Clibborn Monitoring Neutral

Page 61 of 71 NEW BUSINESS #1.

(ESB 5096) SHB 1410 H Rules R Doglio Medium Support (ESB 5288) E2SHB 1570 S Human Svcs/Corr Macri Medium Support HB 2655 H Approps Dolan Monitoring Neutral (SB 6286) SHB 2665 H Rules R Macri Monitoring Neutral (SSB 6312) HB 2955 H Commerce & Gam Springer Monitoring Neutral ESSB 5048 S Rules X Braun Monitoring Neutral (SHB 1067) ESSB 5086 S Rules X Honeyford Monitoring Neutral (2SHB 1075) SB 6286 S Ways & Means Braun Monitoring Neutral (HB 2655) SSB 6312 S Rules 2 Hunt Monitoring Neutral (SHB 2665)

Legislative Tracking Information

Support

Bill Details Status Sponsor Priority

Trans. benefit tax increase H Rules R Doglio Medium Authorizing certain public transportation benefit areas to impose a sales and use tax increase SHB 1410 approved by voters. (ESB 5288) Sponsors: Doglio (Prime), Dolan, Farrell, Fey, Fitzgibbon, Jinkins, Pollet, Springer

Summary:

S Human Homeless housing & assist. Macri Medium Svcs/Corr Concerning access to homeless housing and assistance.

Sponsors: Macri (Prime), Appleton, Bergquist, Chapman, Clibborn, Cody, Doglio, Dolan, Farrell, Fey, Fitzgibbon, Frame, Goodman, Gregerson, Hudgins, Jinkins, Kagi, Kloba, McBride, Ormsby, Ortiz-Self, Orwall, Peterson, Pettigrew, Pollet, Riccelli, Robinson, Ryu, Sawyer, Senn, Slatter, Stanford, Stonier, Tarleton, Tharinger E2SHB 1570 Summary: HB 1570-S2 - DIGEST Establishes the Washington housing opportunities act. Improves resources available to aid with increasing access and removing barriers to housing for individuals and families in the state. Increases the surcharge for local homeless housing and assistance. Requires the department of commerce to: (1) In collaboration with the state institute for public policy, conduct a statewide homeless study every ten years to better understand the causes and characteristics of the homeless in the state and help decision makers promote efforts toward housing stability; (2) Coordinate its efforts on the state homeless housing strategic plan with the office of homeless youth prevention and protection programs advisory committee; and (3) Provide an update on the state's homeless housing strategic plan and its activities for the prior fiscal year.

Oppose

Page 62 of 71 NEW BUSINESS #1.

No bills.

Neutral

Bill Details Status Sponsor Priority

Operating budget H Approps Ormsby Monitoring Making operating appropriations for the 2015-2017 and 2017-2019 fiscal biennia. SHB 1067 (ESSB 5048) Sponsors: Ormsby (Prime), Jinkins

Summary: Makes operating appropriations for the 2015-2017 and 2017-2019 fiscal biennia.

Capital budget 2017-2019 H Rules X Tharinger Monitoring Concerning the capital budget. 2SHB 1075 (ESSB 5086) Sponsors: Tharinger (Prime)

Summary: Makes appropriations and authorizes expenditures for capital improvements.

Transport. budget 2017-2019 H Trans Clibborn Monitoring Making transportation appropriations for the 2017-2019 fiscal biennium. SHB 1147 (ESB 5096) Sponsors: Clibborn (Prime), Farrell, Fey, Wylie

Summary: Makes transportation appropriations for the 2017-2019 fiscal biennium.

SEBB board membership H Approps Dolan Monitoring Adding members to the school employees' benefits board. HB 2655 (SB 6286) Sponsors: Dolan (Prime), Harris, Kilduff, Robinson, Santos

Summary: Changes the composition of the school employees' benefits board.

Unincorp. island annexation H Rules R Macri Monitoring Eliminating certain requirements for the annexation of an unincorporated island of territory. SHB 2665 (SSB 6312) Sponsors: Macri (Prime), Appleton

Summary:

H Commerce & Craft distillers prod. cap Springer Monitoring Gam Removing the production cap on craft distillers. HB 2955 Sponsors: Springer (Prime), Condotta

Summary: Modifies craft distiller provisions by removing the production cap on distillers.

ESSB 5048 Operating budget S Rules X Braun Monitoring

Page 63 of 71 NEW BUSINESS #1.

(SHB 1067) Making operating appropriations for the 2015-2017 and 2017-2019 fiscal biennia.

Sponsors: Braun (Prime), Ranker

Summary: Makes operating appropriations for the 2015-2017 and 2017-2019 fiscal biennia.

Capital budget 2017-2019 S Rules X Honeyford Monitoring Concerning the capital budget. ESSB 5086 (2SHB 1075) Sponsors: Honeyford (Prime), Frockt

Summary: Addresses the capital budget to fund capital projects.

S Ways & SEBB board membership Braun Monitoring Means SB 6286 Adding members to the school employees' benefits board. (HB 2655) Sponsors: Braun (Prime), Rolfes, Wellman, Zeiger

Summary: Changes the composition of the school employees' benefits board.

Unincorp. island annexation S Rules 2 Hunt Monitoring Eliminating certain requirements for the annexation of an unincorporated island of territory. SSB 6312 (SHB 2665) Sponsors: Hunt (Prime)

Summary: Eliminates certain requirements for the annexation of an unincorporated island of territory.

Concerns

No bills.

Page 64 of 71 NEW BUSINESS #1.

Arledge Group 2018 Washington State Legislature Update City of Tumwater March 12, 2018

Week of March 5 to 8 Sine Die Report

On March 8, legislators were successful in ending the 60-day Washington State legislative session on time. This is the first session to end on its scheduled sine die, without needing at least one special session, since the 2014 session. Over 300 bills were passed out of the over 1,400 bills introduced this session. The primary focus during the last week of the 2018 legislative session was on finishing supplemental budget negotiations.

Below is a summary of the highlights from this week.

Supplemental Budgets

Final negotiations regarding the 2018 supplemental operating, capital and transportation budgets for the 2017-19 biennium were wrapped up the last few days of session.

2018 Supplemental Operating Budget

The adopted 2018 supplemental operating budget (ESSB 6032) relies upon an anticipated $1.3 billion in projected new revenue combined with $700 million from state reserves. The budget increases 2017-19 biennium appropriations by $941 million, as explained in this Washington Research Council blog. It fully funds the increase in school staff salaries required by the McCleary decision. These raises are implemented a year earlier than originally planned (estimated cost of $776 million). The supplemental operating budget also includes a reduction in property tax increases implemented last year as a revenue source for education funding. ESSB 6614 lowers the property taxes in 2019 by 30 cents per $1000 of assessed value (estimated cost of $391 million). Senate and House Republicans expressed concerns about the sustainability of funding sources relied on in ESSB 6614 which redirects $935 million in revenue generated by the additional state levy to the Education Legacy Trust Account in fiscal year 2019. ESSB 6614 passed the Senate (25-23, 1 excused) on March 7 and House (59-38) on March 8.

The agreed upon supplemental operating budget leaves an ending fund balance of $1.22 billion for the 2017-19 biennium and $103 million for the 2019-21 biennium. It also leaves $1.139 billion for the 2017- 19 biennium and $1.691 billion for the 2019-21 biennium in the budget stabilization account (rainy day fund). In the end, the 2018 supplemental operating budget was passed in the House by a vote of 54-44 on March 8. That same day the legislation passed the Senate with a vote of 25-24. It will be sent to the governor to be signed into law. You can view the 2018 supplemental operating budget documents here.

2018 Supplemental Capital Budget

The proposed compromise 2018 supplemental capital budget for the 2017-19 biennium (ESSB 6095) was passed by the House on March 6 with a 96-2 vote. The Senate passed the same budget by a vote of 49-0 on

Page 65 of 71 NEW BUSINESS #1.

March 8. It will be sent to the governor to be signed into law. You can view the 2018 supplemental capital budget and its corresponding documents here.

2018 Supplemental Transportation Budget

The proposed compromise 2018 supplemental transportation budget (ESSB 6106) passed the House on March 7 with a 96-1 (1 excused) vote and the Senate on March 8 with a vote of 47-1 (1 excused). You can access the final negotiated 2018 supplemental transportation budget and its corresponding documents here.

Business & Labor

Pay Equity

On March 6 a conference committee report was produced for pay equity legislation (2SHB 1506). It was promptly passed by the Senate 36-12 and by the House with a vote of 70-28. The bill modifies the Equal Pay Act by defining "similarly employed," referring to gender, modifying defenses, providing an administrative remedy, and making other changes. It also prohibits discrimination in providing career advancement opportunities based on gender and prohibits retaliation for certain workplace discussions about wages and other matters.

Religious Affiliation Disclosure

On March 5 the House unanimously passed EHB 2097, which, among other things, makes it an unfair practice for an employer to require the disclosure of certain information about religious affiliation and beliefs. Over a month later the Senate passed it with amendments by a vote of 48-0. On March 5 the Senate concurred. The bill is now with the governor for consideration.

Tax Preference for Fishing Fleets

SHB 1154 ensures the competitiveness of Washington State's fishing and seafood processing industries by supporting the recapitalization of fishing fleets through certain tax preferences. The bill passed the House 97-1, but the Senate did not take action.

B&O Tax Preference for Accountable Communities of Health

On March 7 the Senate unanimously passed an amended SHB 2998, which provides a business and occupation tax exemption for certain Medicaid demonstration project funds received by an Accountable Community of Health from federal, state or local government. The bill has fully passed the Legislature and is on its way to the governor for consideration.

Health Care

Cigarette, Tobacco & Vapor Product Minimum Age

E2SHB 1054 raises the minimum age to purchase cigarettes, tobacco products and vapor products. The bill was passed with a vote of 63-35 by the House on March 7. The Senate declined to take action and the bill died this session.

Rural Health Care Access

An amended ESHB 2408 was passed unanimously by the House on February 14, the Senate (30-18) on March 7 and the House concurred (58-40) with the Senate amendments on March 8. This legislation

Page 66 of 71 NEW BUSINESS #1.

requires a health carrier offering a health plan approved by the School Employees Board to offer a qualified health plan in counties where no qualified health plans are offered on the Health Benefit Exchange. It also reduces premiums for enrollees in the Washington Health Insurance Pool in counties where there is no other individual market coverage available. It has been delivered to the governor for his signature.

Substance Use Disorder Health Coverage

This bill (2SHB 2572) requires commercial health plans to cover inpatient and residential substance use. After passing the House unanimously, it was not brought to the Senate floor for a vote.

Medicaid Fraud Control

On March 5, the Senate concurred with House amendments and unanimously passed SSB 6051. The bill creates a new chapter in the Medicaid statute that authorizes the Medicaid Fraud Control Unit (MFCU) to investigate and prosecute Medicaid fraud. It has been delivered to the governor to be signed into law.

Women's Health Care

Catholic Bishops have requested that Governor Inslee veto the Reproductive Parity Act legislation SSB 6219, as noted in this KOMO News article. The bill requires that health plans include coverage for contraceptives with no cost sharing. It also establishes an abortion coverage requirement for health plans that provide maternity care coverage.

Law & Justice

I-940 De-Escalate Washington

The "De-Escalate Washington" Initiative 940 (I-940) proposes to revise the state law on use of deadly force in policing. Last week the House Public Safety Committee and the Senate Law & Justice Committee each held a public hearing and passed their respective initiatives to the Legislature. After considerable negotiations, on March 7 an agreement was reached by legislators to pass the initiatives and also pass a bill (ESHB 3003) to change the initiative once it goes into effect. The bill agreed to by most stakeholders removes the reference to "malice" and inserts language that sufficiently protects officers who act within their training by defining "good faith" to a standard recognized nationally. On March 8 Senate Initiative 940 passed the Senate 25-24 and House Initiative 940 passed 55-43. ESHB 3003 passed the House with a 73-25 vote and the Senate with a 25-24 vote. As explained in this Yakima Valley Herald article, most stakeholders support the bill and this outcome will take the initiative off the November ballot despite the Legislature's modified approach to the matter in ESHB 3003. The legislation was signed by the governor the same day it passed both chambers.

State Government

On March 6, Representative Morris (D-Mt. Vernon) introduced HB 3011 to expand the scope of the Public Records Act to include every office, department, and division of all three branches of government. It did not see movement. The supplemental 2018 operating budget includes funding for a task force to "examine establishing standards for maintaining and disclosing public records for the legislative branch of government."

Environment

Oil Transportation Safety

Page 67 of 71 NEW BUSINESS #1.

Legislation (E2SSB 6269) to strengthen oil transportation safety was passed by the House on March 7 with a 62-35 vote after the Senate approved it on March 3 by a vote of 42-7. As noted in this Seattle Times article, the bill extends the state's existing oil barrel tax to pipelines. It has been delivered to the governor for his signature.

Tax on Carbon

Following last-week's announcement that carbon tax legislation (2SSB 6203) was dead this session, supporters of the bill filed an initiative that would impose a fee of $15 per metric ton of carbon effective January 1, 2020. This fee would rise annually by $2 plus the rate of inflation. The fee would become fixed after Washington State meets its 2035 greenhouse gas reduction goals. Nearly 260,000 signatures for the initiative will need to be collected by July 6 to certify it for the November 2018 ballot. In response, Senators Baumgartner (R-Spokane) and Ericksen (R-Ferndale) introduced SB 6629 on March 6, but it had no movement after its introduction.

Green Energy

There was a last-minute final push on March 8 regarding energy-related legislation in SHB 2995, but in the end it was not passed. Among other things, it would have required all electric utilities by year 2030 to eliminate from electric rates all costs associated with delivering electricity generated from a coal-fired resource to Washington State customers.

Fall Elections

As the session came to a close, more legislators announced they would not be running for re-election. Those include House Transportation Chair Rep. Judy Clibborn (D-Mercer Island), Rep. Terry Nealey (R- Dayton), House Minority Leader Dan Kristiansen (R-Snohomish), and Rep. Ruth Kagi (D-Seattle).

Legislative Leadership Changes

Republicans in the House announced new leadership positions on March 8. Rep. Wilcox (R-Roy) has been appointed the new House Minority Leader. Rep. Stokesbary (R-Auburn) is the new House Republican Floor Leader and Rep. MacEwen (R-Union) is the new Assistant Floor Leader.

City of Tumwater

Upcoming Legislative Events

Bill # Status Sponsor Priority Position SHB 1067 H Approps Ormsby Monitoring Neutral (ESSB 5048) 2SHB 1075 H Rules X Tharinger Monitoring Neutral (ESSB 5086) SHB 1147 H Trans Clibborn Monitoring Neutral (ESB 5096) SHB 1410 H Rules R Doglio Medium Support (ESB 5288) E2SHB 1570 Del to Gov Macri Medium Support HB 2655 H Approps Dolan Monitoring Neutral (SB 6286) SHB 2665 H Rules R Macri Monitoring Neutral (SSB 6312)

Page 68 of 71 NEW BUSINESS #1.

HB 2955 H Commerce & Gam Springer Monitoring Neutral ESSB 5048 S Rules X Braun Monitoring Neutral (SHB 1067) ESSB 5086 S Rules X Honeyford Monitoring Neutral (2SHB 1075) SB 6286 S Ways & Means Braun Monitoring Neutral (HB 2655) SSB 6312 S Rules X Hunt Monitoring Neutral (SHB 2665)

Legislative Tracking Information

Support

Bill Details Status Sponsor Priority

Trans. benefit tax increase H Rules R Doglio Medium Authorizing certain public transportation benefit areas to impose a sales and use tax increase approved by voters.

SHB 1410 Sponsors: Doglio (Prime), Dolan, Farrell, Fey, Fitzgibbon, Jinkins, Pollet, Springer (ESB 5288) Summary: Authorizes the legislative body of a public transportation benefit area to also submit an authorizing proposition to the voters and, if approved, impose a sales and use tax if the area is located in a county with a population of more than two hundred fifty thousand but less than four hundred thousand and contains two or more cities with a population of at least forty thousand.

Homeless housing & assist. Del to Gov Macri Medium Concerning access to homeless housing and assistance.

Sponsors: Macri (Prime), Appleton, Bergquist, Chapman, Clibborn, Cody, Doglio, Dolan, Farrell, Fey, Fitzgibbon, Frame, Goodman, Gregerson, Hudgins, Jinkins, Kagi, Kloba, McBride, Ormsby, Ortiz-Self, Orwall, Peterson, Pettigrew, Pollet, Riccelli, Robinson, Ryu, Sawyer, Senn, Slatter, Stanford, Stonier, Tarleton, Tharinger

E2SHB 1570 Summary: HB 1570-S2 - DIGEST Establishes the Washington housing opportunities act. Improves resources available to aid with increasing access and removing barriers to housing for individuals and families in the state. Increases the surcharge for local homeless housing and assistance. Requires the department of commerce to: (1) In collaboration with the state institute for public policy, conduct a statewide homeless study every ten years to better understand the causes and characteristics of the homeless in the state and help decision makers promote efforts toward housing stability; (2) Coordinate its efforts on the state homeless housing strategic plan with the office of homeless youth prevention and protection programs advisory committee; and (3) Provide an update on the state's homeless housing strategic plan and its activities for the prior fiscal year.

Oppose

No bills.

Neutral

Page 69 of 71 NEW BUSINESS #1.

Bill Details Status Sponsor Priority

Operating budget H Approps Ormsby Monitoring Making operating appropriations for the 2015-2017 and 2017-2019 fiscal biennia. SHB 1067 (ESSB 5048) Sponsors: Ormsby (Prime), Jinkins

Summary: Makes operating appropriations for the 2015-2017 and 2017-2019 fiscal biennia.

Capital budget 2017-2019 H Rules X Tharinger Monitoring Concerning the capital budget. 2SHB 1075 (ESSB 5086) Sponsors: Tharinger (Prime)

Summary: Makes appropriations and authorizes expenditures for capital improvements.

Transport. budget 2017-2019 H Trans Clibborn Monitoring Making transportation appropriations for the 2017-2019 fiscal biennium. SHB 1147 (ESB 5096) Sponsors: Clibborn (Prime), Farrell, Fey, Wylie

Summary: Makes transportation appropriations for the 2017-2019 fiscal biennium.

SEBB board membership H Approps Dolan Monitoring Adding members to the school employees' benefits board. HB 2655 (SB 6286) Sponsors: Dolan (Prime), Harris, Kilduff, Robinson, Santos

Summary: Changes the composition of the school employees' benefits board.

Unincorp. island annexation H Rules R Macri Monitoring Eliminating certain requirements for the annexation of an unincorporated island of territory. SHB 2665 (SSB 6312) Sponsors: Macri (Prime), Appleton

Summary: Eliminates certain requirements for the annexation of an unincorporated island of territory.

H Commerce & Craft distillers prod. cap Springer Monitoring Gam Removing the production cap on craft distillers. HB 2955 Sponsors: Springer (Prime), Condotta

Summary: Modifies craft distiller provisions by removing the production cap on distillers.

Operating budget S Rules X Braun Monitoring Making operating appropriations for the 2015-2017 and 2017-2019 fiscal biennia. ESSB 5048 (SHB 1067) Sponsors: Braun (Prime), Ranker

Summary: Makes operating appropriations for the 2015-2017 and 2017-2019 fiscal biennia.

Page 70 of 71 NEW BUSINESS #1.

Capital budget 2017-2019 S Rules X Honeyford Monitoring Concerning the capital budget. ESSB 5086 (2SHB 1075) Sponsors: Honeyford (Prime), Frockt

Summary: Addresses the capital budget to fund capital projects.

S Ways & SEBB board membership Braun Monitoring Means SB 6286 Adding members to the school employees' benefits board. (HB 2655) Sponsors: Braun (Prime), Rolfes, Wellman, Zeiger

Summary: Changes the composition of the school employees' benefits board.

Unincorp. island annexation S Rules X Hunt Monitoring Eliminating certain requirements for the annexation of an unincorporated island of territory. SSB 6312 (SHB 2665) Sponsors: Hunt (Prime)

Summary: Eliminates certain requirements for the annexation of an unincorporated island of territory.

Concerns

No bills.

Page 71 of 71