Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 2 3 CITY OF SEATTLE 4 ORDINANCE __________________ 5 COUNCIL BILL __________________ 6 7 8 9 10 11 12 ..title AN ORDINANCE establishing a spending plan for proposed use of the proceeds generated from the payroll expense tax authorized by the ordinance introduced as Council Bill ______; and establishing an oversight board; and adding a new Section 3.35.100 to the Seattle Municipal Code. ..body WHEREAS, the City Council (“Council”) adopted the ordinance introduced as Council Bill 13 ______, authorizing the collection of a new payroll expense tax (“payroll tax”) to be 14 imposed beginning January 2021; and 15 WHEREAS, the new payroll tax is anticipated to generate about $173 million in proceeds in 16 2021 with a goal of generating about $200 million on an annual basis, as shown in the 17 spending plan included as Attachment 1 to this ordinance; and 18 19 20 21 WHEREAS, on November 2, 2015, the Mayor issued a Proclamation of Civil Emergency to address the homelessness crisis in the City of Seattle; and WHEREAS, on November 3, 2015, the City Council adopted Resolution 31630, ratifying and confirming the Mayoral Proclamation of Civil Emergency; and 22 WHEREAS, the Civil Emergency to address the homelessness crisis is still in effect today; and 23 WHEREAS, on March 11, 2020, the World Health Organization announced that the novel 24 coronavirus (COVID-19) is officially a global pandemic; and Template last revised December 2, 2019 1 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 WHEREAS, on February 29, 2020 the Washington Governor issued Proclamation 20-05, 2 proclaiming a state of emergency for all counties throughout the state of Washington in 3 response to new cases of COVID-19; and 4 5 6 WHEREAS, on March 13, 2020 the President of the United States declared a national state of emergency in response to the COVID-19 pandemic; and WHEREAS, on March 25, 2020 the Washington Governor issued Proclamation 20-25, 7 prohibiting all people in Washington State from leaving their homes and all non-essential 8 businesses in Washington State from conducting business (“Stay Home – Stay Healthy 9 Proclamation”); and 10 11 12 13 WHEREAS, these actions are appropriate for public health reasons but result in severe economic impacts on families and individuals in Seattle; and WHEREAS, these impacts are felt most strongly by people with low incomes who have become unemployed or had their work hours severely reduced; and 14 WHEREAS, the affordable housing crisis, homelessness emergency, and now the COVID-19 15 pandemic and related economic and unemployment emergencies, in Seattle are deeply 16 impacting the lives of people throughout Seattle and the region and disproportionately 17 harms people of color, immigrants, the LGBTQ community, indigenous peoples’ 18 communities, disabled community members, and women, who already struggle against 19 entrenched inequality; and 20 21 22 23 WHEREAS, average rents in Seattle rose 69 percent between 2010 and 2018, far beyond the rate of inflation and more than double the national average; and WHEREAS, more than 4,280 students in Seattle Public Schools are homeless or have unstable housing; and Template last revised December 2, 2019 2 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 WHEREAS, even before the COVID-19 emergency, thousands of Seattle renters faced eviction 2 threats every year, and in September 2018, the Seattle Women’s Commission and the 3 King County Bar Association jointly published Losing Home: The Human Cost of 4 Eviction in Seattle, finding that more than half of Seattle renters receiving eviction 5 notices in 2017 owed one month’s rent or less, and most tenants who are evicted become 6 homeless; and 7 WHEREAS, the Losing Home report found that evictions in Seattle fall disproportionately on 8 women and people of color, with people of color constituting about 35 percent of renters, 9 and nearly 52 percent of evictions involved people of color; and 10 WHEREAS, the October 2019 Report and Recommendations of the King County Regional 11 Affordable Housing Task Force found that 156,000 affordable homes were needed 12 immediately and another 88,000 affordable homes by 2040 to ensure that no low-income 13 or working households were cost burdened; and 14 15 16 WHEREAS, the 2019 point-in-time count of people experiencing homelessness in King County estimates there are 11,199 individuals experiencing homelessness in the region; and WHEREAS, the Third Door Coalition proposal advocates for the creation of 6,500 permanent 17 supportive housing units as a proven solution for meeting the housing and services needs 18 of those who are chronically homelessness; and 19 WHEREAS, the City recognizes the importance of using a “Housing First” approach in the 20 development of permanent housing for those experiencing homelessness that prioritizes 21 providing access to low or no barrier housing for such persons; and 22 23 WHEREAS, in addition to increasing investments to support programs that provide housing security and that increase the supply of affordable housing, the Council is committed to Template last revised December 2, 2019 3 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 pursuing additional strategies, such as changes to development regulations and permit 2 review processes, to reduce the time and costs of building affordable housing; and 3 WHEREAS, in October 2016, the Council adopted, with the Mayor concurring, Resolution 4 31712, endorsing community principles for green jobs, defining a green job as one that 5 preserves or enhances environmental health as well as the economic and social well- 6 being of people and communities, centers on communities most negatively impacted by 7 climate change, and pays a living wage while providing career pathways; and 8 WHEREAS, the City Council adopted Resolution 31895 establishing a Green New Deal for 9 10 Seattle; and WHEREAS, Resolution 31895 envisioned the need to establish a dedicated revenue source in 11 order to implement Green New Deal strategies, including creating more permanently 12 affordable housing, located near transit hubs, green space, and neighborhood amenities to 13 reduce dependence on private vehicles and strengthening green building standards for 14 new construction to minimize emissions while maximizing energy efficiency; and 15 WHEREAS, the Council is committed to advancing strategies to improve job quality for the 16 local work force, including investing in labor-management trainings and partnering with 17 other entities committed to implementing and adopting innovative workforce strategies; 18 and 19 WHEREAS, the new tax will generate significant funds that will increase the construction and 20 preservation of new permanently affordable housing units for low-income households to 21 address the housing affordability and homelessness crisis, will contribute to reducing 22 Seattle’s climate pollution, and will in the process support living-wage jobs, and in doing Template last revised December 2, 2019 4 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 so will help the City make the necessary changes to shift Seattle’s economy to be more 2 equitable and ecologically sustainable; and 3 4 WHEREAS, the City is committed to eliminating racial inequities through implementation of the Race and Social Justice Initiative; and 5 WHEREAS, Resolution 31577, adopted in May 2015, affirmed that The City of Seattle’s core 6 value of racial and social equity is one of the foundations on which the Comprehensive 7 Plan is built, and defined “equitable development” as public and private investments, 8 programs, and policies in neighborhoods to meet the needs of marginalized people and 9 reduce disparities; and 10 WHEREAS, Ordinance 125173, passed in October 2016, amended the Seattle Comprehensive 11 Plan to increase its emphasis on race and social equity, and affirm the conclusions of the 12 Seattle 2035 Equity Analysis that was part of the City’s overall analysis of the Plan; and 13 WHEREAS, Resolution 31711, adopted in September 2016, identified the Equitable 14 Development Initiative as a key component of implementing Ordinance 125173 and 15 approved the Equitable Development Implementation Plan and the Equitable 16 Development Financial Investment Strategy to advance the public purposes of 17 community stability, cohesion, and affordability; and 18 WHEREAS, the City’s Equitable Development Initiative supports community driven projects 19 that promote economic opportunities for marginalized populations and enhance 20 community cultural anchors, affordable housing development, health services, child care 21 services, and other community services that support the needs of diverse populations in 22 areas at risk of displacement; and Template last revised December 2, 2019 5 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 WHEREAS, the Equitable Development Initiative receives annual funding of $5 million from 2 the short-term rental tax, but this funding is insufficient to support the number of current 3 projects in development and additional future projects; and 4 WHEREAS, on March 18, 2019, the City Council adopted Resolution 31870, committing to 5 taking future actions to mitigate displacement impacts on marginalized communities, 6 including communities of color and low-income communities, particularly in 7 neighborhoods identified as at high risk of displacement by the Growth and Equity 8 Analysis. One action called for was to identify a permanent and consistent source of 9 funding for the Equitable Development Initiative, beyond the $5 million per year 10 expected to be generated through the short-term rental tax, with a long-term goal of $20 11 million annually; and 12 WHEREAS, the new payroll tax will generate significant funds to address identified inequities 13 and to respond to the economic and public health impacts caused by the COVID-19 14 pandemic that are anticipated to persist beyond 2020; NOW, THEREFORE, 15 BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS: 16 Section 1. Findings. The City Council finds that: 17 A. On March 3, 2020, the Mayor proclaimed that a civil emergency exists in the City of 18 Seattle related to the COVID-19 virus. 19 B. On March 11, 2020, the Governor of Washington State and the Local Health Officer 20 for Public Health – Seattle & King County issued parallel orders prohibiting gatherings of 250 21 people or more for social, spiritual and recreational activities in King County. Template last revised December 2, 2019 6 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 C. On March 13, 2020, the Governor of Washington state issued an emergency order 2 announcing all K-12 schools in Washington to be closed from March 17, 2020 through June 19, 3 2020 to combat the spread of the disease. 4 5 6 D. On March 13, 2020, the President of the United States declared a national emergency to allow the government to marshal additional resources to combat the virus. E. On March 23, 2020, the Governor of Washington State issued an emergency order 7 (“the Stay Home, Stay Safe” order) announcing that “[a]ll people in Washington State shall 8 immediately cease leaving their home or place of residence except: (1) to conduct or participate 9 in essential activities, and/or (2) for employment in essential business services.” 10 F. As of June 11, 2020, the Washington State Department of Health confirmed 25,171 11 cases of COVID-19 and 1,204 deaths caused by the virus in Washington State, with 8,611 12 confirmed cases and 586 deaths caused by the virus in King County. 13 G. The COVID-19 crisis has had a significant impact on the local economy impacting the 14 retail, restaurant, construction, gig economy, and other industries resulting in layoffs and reduced 15 work hours for a significant percentage of this workforce and loss of income for small 16 businesses. These impacts are being felt most strongly by low income workers, people of color, 17 immigrants, and members of the LGBTQIA community, who have become unemployed or had 18 their work hours severely reduced and will have both immediate and long-term impacts. 19 H. There are at least 38,000 businesses in the City of Seattle employing a minimum of 20 655,000 individuals. Since the Governor of Washington closed or limited operations of many 21 businesses in the state beginning in March, the statewide unemployment rate went from 5.1 22 percent in March to 15.4 percent in April. This equates to 199,000 individuals in March, and 23 610,000 individuals in April who are unemployed. In the Seattle/ Bellevue/Everett area, the Template last revised December 2, 2019 7 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 unemployment rate went from 5.6 percent in March to 14.5 percent in April. This equates to 2 96,000 individuals in March and 248,000 individuals in April who are unemployed. Rising 3 unemployment will put more and more Seattle households, particularly low-income households, 4 in financial peril. 5 I. Providing financial assistance to small business owners and operators is necessary to 6 prevent small businesses from having to close permanently due to the hardship associated with 7 government-mandated full or partial closure of their businesses, or requirements to implement 8 new businesses practices and physical modifications to the business to meet public health 9 guidance, during and after the COVID-19 crisis. Such assistance shall provide economic benefits 10 to the public by saving or creating jobs, moderating impacts to local tax revenue by supporting 11 continue operations of small businesses and ensuring that businesses can modify operations as 12 necessary to comply with public health guidance. 13 J. Federal and state assistance is inaccessible to many people with low-incomes, to many 14 small businesses, and is being delayed for many others, and will not be sufficient to meet their 15 basic needs during the COVID-19 public health and financial crisis. In addition, federal 16 assistance provided to small businesses may not allow flexibility in terms of non-payroll costs 17 that can be covered, timeline for expending funds, etc. Therefore, additional financial support to 18 small businesses and people with low-incomes is necessary to help meet their basic needs and to 19 help minimize impacts to public health as well as the local economy. 20 21 22 23 K. The economic impacts from the COVID-19 emergency are drastic and immediate but are also expected to last much longer than the civil shut-down emergency itself. L. Data from the 2012-2016 American Community Survey (ACS) shows that: over 60,000 households in Seattle with incomes at or below 80 percent of AMI are cost burdened, Template last revised December 2, 2019 8 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 paying more than 30 percent of their income for rent and utilities; and 29,000 households with 2 incomes at or below 50 percent of area AMI are severely cost burdened, paying over 50 percent 3 of their income for rent and utilities, and, as a result, are at potential risk of homelessness. 4 M. The COVID-19 emergency poses a serious threat to the housing stability of 5 households who are unable to pay rent due during the crisis and is expected to impact the ability 6 for people to be securely housed beyond 2020. 7 N. Spending on equitable development investments, including the community-identified 8 and City-approved projects included in the Equitable Development Financial Investment 9 Strategy, achieves a clear public purpose in advancing the City’s core value of racial and social 10 equity through fostering the development and improvement of physical and social assets serving 11 communities, economic development, education, and workforce training programs, and other 12 public benefits. 13 O. The spending plan is being tailored to address both the shorter (2021) and longer-term 14 (2022 and beyond) basic human health and public health needs created by the multiple and 15 overlapping crises, which include the long-running affordable housing and homelessness crisis, 16 food insecurity, and loss of childcare and small businesses through the community, which has 17 now been greatly exacerbated and complicated by the COVID-19 pandemic and related 18 economic and unemployment crises. 19 P. Investments in the programs and services described in this ordinance will help 20 counteract the economic and health impacts caused by the COVID-19 crisis by investing in low- 21 income communities, small businesses, and other services that will continue to be needed in 22 2021 and beyond by people who saw significant reductions in income due to employment 23 changes and business closures or reductions stemming from the crisis. Template last revised December 2, 2019 9 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 2 3 Q. The City’s Adopted 2020 Budget fully appropriates all available municipal revenues to address the many and varied needs of the community. R. At an April 22 presentation to the Select Budget Committee, the City Budget Director 4 stated that a “Rapid Recovery” in City General Fund finances from the COVID 19 civil 5 emergency would result in a $100 million or 7 percent reduction in General Fund revenues 6 available for City spending priorities in 2020, and further stated that a “Slow Recovery” scenario 7 would result in a $186 million or 13 percent reduction in General Fund revenues and about $113 8 million reduction in other general government revenues in 2020, for a total reduction of about 9 $300 million in 2020.. 10 S. The City will impose a new payroll tax through Council Bill ______ that is expected 11 to provide new and sufficient revenues to allow the City, in 2021, to replenish emergency funds 12 used in 2020 to make public assistance available to households most impacted by the COVID-19 13 civil emergency and to provide resources to maintain services and provide longer terms solutions 14 to address the inequities exacerbated by the COVID-19 crisis. 15 Section 2. Proceeds from the new payroll tax imposed by the ordinance introduced as 16 Council Bill ______ may only be used as described in subsections 2.A.1 through 2.B.4 of this 17 ordinance and summarized in Attachment 1 to this ordinance. The programs funded in this 18 spending plan may be used to provide assistance to low income people who live or work in 19 Seattle. The spending plan may be amended from time to time by the City Council by ordinance. 20 A. In 2021, the first $67 million may be used to replenish the City’s Emergency Fund 21 balance that was reduced in 2020 to fund programs that address the economic impacts caused by 22 COVID-19. Any remaining proceeds from the payroll tax are intended to be used as follows: Template last revised December 2, 2019 10 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 1. Up to five percent may be used to administer the payroll tax authorized by the 2 ordinance introduced as Council Bill ______ and to administer the investments described in 3 subsections 2.A.2 and 2.A.3 of this ordinance. If less than five percent of remaining funds is 4 needed for implementation and administration, any remaining funds may be used for other 5 programs and services described in subsections 2.A.2 through 2.A.3 of this ordinance. 6 2. Seventy-five percent may be used to (1) provide continuity of services and 7 programs that support administered or supported by the City prior to the COVID-19 crises that, 8 absent the support from the payroll tax revenue, would see a reduction in funding; and (2) 9 funding to support increased costs and the expansion of services and programs administered or 10 funded by the City that support low-income communities, immigrant and refugee communities, 11 people experiencing homelessness or housing insecurity, people experiencing food insecurity, 12 and to fund other City programs and services that address the needs of low-income households 13 and small businesses. It is the Council’s intent that funding is prioritized for investments in 14 services and programs that service lower-income neighborhoods. 15 3. Twenty percent may be used to continue some funding for the programs and 16 services that received funding in 2020 as described in the ordinance introduced as Council Bill 17 ______. 18 B. In all subsequent years, the proceeds from the payroll tax will be allocated as 19 described in an implementation plan adopted by the City Council biennially, with the first plan 20 adopted in 2021 for spending in years 2022 and 2023. The intent is to allocate funding as 21 follows: 22 23 1. Up to five percent of the proceeds may be used to administer the payroll tax authorized by the ordinance introduced as Council Bill ______ and to administer the investments Template last revised December 2, 2019 11 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 described in subsections 2.B.2 through 2.B.4 of this ordinance. If less than five percent of 2 remaining funds are needed for administration, any remaining funds may be used for other 3 programs and services described in subsections 2.B.2 through 2.B.3 of this ordinance. 4 2. Housing and services. Sixty-five percent of the proceeds may be used to 5 support (1) capital costs associated with the construction or acquisition of rental housing for low- 6 wage households, including but not limited to people with disabilities, the elderly, low-wage 7 working people, homeless individuals and families, and families with children; (2) operating and 8 services costs of rental housing serving households at or below 30 percent of area median 9 income (AMI); and (3) associated infrastructure to support the ongoing operations costs for the 10 housing, such as maintenance, retrofitting, and energy efficient upgrades to support the housing. 11 Of the proceeds proposed for housing and services, the Council intents the following: Percent of Housing Intended Use of Funds and Services Funding To support the development or acquisition of housing with rents affordable to individuals and 75% families with incomes at or below 30 percent of AMI. To support the development or acquisition of housing with rents affordable to individuals or 25% families with incomes at or below 50 percent of AMI, provided that such projects include units serving households at or below 30 percent of AMI 12 13 It is the Council’s intent that new construction of housing projects funded with 14 this tax will be built consistent with the City’s Housing Funding Policies as adopted by 15 Ordinance 119531, or as may be amended. These include, but are not limited to: 16 17 a. Requirements and goals that advance labor equity outcomes, such as: the payment of prevailing wages, apprenticeship utilization, and employment of Women and Template last revised December 2, 2019 12 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 Minority Owned Businesses. Imposing additional requirements including, but not limited to: 2 preferred entry to apprenticeship programs, requirements for pre-apprenticeship, mentoring or 3 other training programs, and utilization of workers from economically distressed areas, will be 4 considered for new construction housing projects based on the results of the evaluation of the 2nd 5 and Mercer housing pilot project, expected in mid-2021. The implementation plan that will be 6 adopted by the City Council in 2021 will guide spending for 2022 and 2023, and may impose 7 further labor equity-related requirements for new construction projects and recommend any 8 needed amendments to the City’s Housing Funding Policies to impose such requirements. 9 b. Prioritize projects that advance equitable development goals and 10 address displacement, including those proposed or supported by local, community-based, non- 11 profit organizations that are culturally relevant and historically rooted, particularly when the 12 project site is in an area that is at high risk for displacement. 13 c. Utilize well-located publicly owned properties to achieve cost savings 14 for affordable housing development through reduced or no-cost land transfers, favorable 15 purchase terms, and efficient funding and disposition processes. 16 3. Ten percent of the proceeds may be used to support the Equitable Development 17 Initiative. Funding may be used to support community-initiated equitable development projects 18 that advance economic mobility and opportunity, prevent residential, commercial, and cultural 19 displacement, build on local cultural assets, promote transportation mobility and connectivity, 20 develop healthy and safe neighborhoods, and enable equitable access to all neighborhoods. 21 Funds would be appropriated to the Office of Planning and Community Development and 22 allocated through the EDI’s existing established funding process for awarding EDI grants. This 23 funding may be used to support both the non-housing and affordable housing components of EDI Template last revised December 2, 2019 13 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 projects. Investments in EDI projects that include an affordable housing component will be 2 prioritized. 3 4. Twenty percent of the proceeds may be used to support local businesses and 4 tourism to spur the local economic recovery, and to provide economic stability for the city’s 5 workforce. Investments will prioritize programs and service that diversify the local economy and 6 improve job quality, including investing in labor-management training programs and 7 partnerships with organizations whose work focuses on innovative workforce strategies that 8 support and create jobs with strong pay and benefits. This will include: 9 a. At least $650,000 in 2022 to contract with an organization with 10 expertise and experience in developing a plan and can act as a catalyst to launch programs and 11 services that will help transition a just local economy that provides stable, safe, and health family 12 sustaining jobs. The Council expects that, in 2021, the Executive will convene a group that 13 includes, but is not limited to, representatives from City departments, labor organizations, and 14 small businesses, to develop the scope of work and to select a firm to carry out this work in 15 2022. b. Any remaining funds will be used to invest in individuals’ businesses, 16 17 activities that promote and support business districts and tourism, and to support business 18 organizations focused on retaining and growing the workforce, including job training programs 19 that provide a path to careers that provide family-sustaining wages and benefits. Preference will 20 be given to businesses and business organizations who provide a safe, healthy, and economically 21 beneficial working environment for its employees by providing the following, including but not 22 limited to: codes of conduct, health care benefits, educational benefits, retirement benefits, living 23 wage standards, and entering into a labor peace agreement with employees. Template last revised December 2, 2019 14 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 Section 3. On or before June 30, 2021, the Executive is requested to submit an 2 Implementation Plan for the payroll tax spending for years 2022 and beyond to the City Council 3 that includes: 4 A. Specific spending proposal for years 2022 and beyond; 5 B. Proposed outcomes for each funded program or service; 6 C. How the programs or services will be implemented (i.e., responsible department, 7 funding processes, etc.); 8 D. Proposed policies for implementing funded programs or services, 9 E. Recommended modifications to the City’s Housing Funding policies imposing new 10 11 12 13 labor equity outcomes for new construction housing projects, if appropriate; and F. Proposal for the detailed roles and responsibilities for the Oversight Committee described in Section 5 of this ordinance. The Executive, with the support of the Seattle Office for Civil Rights, will conduct racial 14 equity analysis on the proposed implementation plan prior to submittal to the City Council. The 15 completion of this analysis should not delay submittal of the Implementation Plan by June 30, 16 2021. The Executive is expected to work cooperatively with the City Council in the development 17 of this implementation plan to ensure it is consistent with the proposed spending plan. 18 19 Section 4. A new Section 3.35.100 is added to the Seattle Municipal Code as follows: 3.35.100 Payroll Tax Oversight Committee 20 A. There is established an Oversight Committee for the purpose of providing oversight on 21 the services and programs supported by the payroll tax and the impacts of this tax on the number 22 of jobs and businesses in the City, and other data that directly relates to measuring the impact of 23 this tax on the City’s economy. The Oversight Committee shall provide an annual report that Template last revised December 2, 2019 15 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 provides this information to the Mayor and the City Council. The Oversight Committee shall 2 consult with the Coalition of City Unions, Small Business Advisory Committee, Housing Levy 3 Oversight Committee, the Green New Deal Oversight Committee and other oversight 4 committees that monitor programs and services similar to those supported by the payroll tax. The 5 Committee may elect officers and establish rules of procedure, including what shall constitute a 6 quorum. The Director of Neighborhoods or such other department head as may be designated by 7 the Mayor shall provide the Committee such information as is necessary for the Committee to 8 determine the status of individual programs and projects. 9 10 B. The Oversight Committee shall consist of nine voting members, appointed to positions number 1 through 9. 11 a. Position 1 shall be a City employee appointed by the Mayor or designee; 12 position 2 shall be a City employee appointed by the City Council; positions 3 through 9 shall be 13 persons outside City government. Positions 3, 5, and 7 shall be appointed by the Mayor. 14 Positions 4, 6, 8 and 9 shall be appointed by the City Council. 15 b. Positions 3 and 4 shall represent labor. 16 c. Positions 5 and 6 shall represent business 17 d. Positions 7 and 8 shall represent community organizations that reflect the 18 diversity of the City. 19 20 21 22 e. Position 9 shall represent communities that will benefit from the proposed spending f. The appointing authority may remove any member who is absent from two or more consecutive meetings without cause. Template last revised December 2, 2019 16 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 C. No more than three committee members appointed by the Mayor and no more than 2 two committee members appointed by the City Council shall be an officer, director, board 3 member, trustee, partner, or employee of an entity that receives or competes for funding under 4 this ordinance; or be a member of the immediate family of, or an individual residing with, an 5 officer, director, board member, trustee, partner, or employee of an entity that receives or 6 competes for funding under this ordinance; or be a person seeking or having an arrangement 7 concerning future employment with an entity that receives or competes for funding under this 8 ordinance. For the purposes of this Section 3.36.100, an individual’s “immediate family” means 9 the individual’s spouse, domestic partner, child, child of a spouse or domestic partner, sibling-in- 10 law, parent, parent of a spouse or domestic partner, a person for whom the individual acts as a 11 guardian, or a person claimed as a dependent on the individual’s most recent federal income tax 12 return. Subject to the preceding sentence and applicable law, an individual serving as an officer, 13 director, board member, trustee, partner, or employee of an entity that receives or competes for 14 funding under this ordinance, or who has an interest in such an entity, shall not thereby be 15 disqualified from serving on the Committee, but shall fully disclose any such relationships and 16 shall not vote on any matter in which the interest of such entity is directly involved. 17 18 19 D. Upon the resignation, retirement, death, incapacity, or removal of a member, the authority appointing such member may appoint a replacement for the balance of the term. E. The initial terms of positions 1, 3, 5, 7, and 9 shall be two years; the initial terms of 20 positions 2, 4, 6, and 8 shall be three years; all subsequent terms shall be three years. Any 21 vacancy in an unexpired term shall be filled in the same manner as the original appointment. A 22 member whose term is ending may continue on an interim basis as a member with voting rights Template last revised December 2, 2019 17 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 until such time as a replacement for that position has been appointed by the City Council or 2 confirmed by the City Council. 3 F. Members shall serve without pay, except that members may request compensation of 4 $50 per hour served if participating on the Board presents a financial hardship. Upon such 5 request, the Director of Neighborhoods is authorized to expend funds in the Department of 6 Neighborhood’s budget for this purpose. No money may be expended for services rendered prior 7 to a request being filed with the Director. 8 Section 5. Severability. The provisions of this ordinance are declared to be separate and 9 severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of 10 this ordinance, or the invalidity of its application to any person or circumstance, does not affect 11 the validity of the remainder of this ordinance or the validity of its application to other persons or 12 circumstances. 13 Template last revised December 2, 2019 18 Aly Pennucci and Traci Ratzliff LEG Jump Start Seattle Spending Plan ORD PRE-INTRODUCTION DRAFT 1 Section 6. This ordinance shall take effect and be in force 30 days after its approval by 2 the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it 3 shall take effect as provided by Seattle Municipal Code Section 1.04.020. 4 Passed by a 3/4 vote of all the members of the City Council the ________ day of 5 _________________________, 2020, and signed by me in open session in authentication of its 6 passage this _____ day of _________________________, 2020. 7 ____________________________________ 8 President ____________ of the City Council 9 Approved by me this ________ day of _________________________, 2020. 10 ____________________________________ 11 Jenny A. Durkan, Mayor 12 Filed by me this ________ day of _________________________, 2020. 13 ____________________________________ 14 Monica Martinez Simmons, City Clerk 15 16 17 18 (Seal) Attachments: Attachment 1 – Proposed Spending Plan Template last revised December 2, 2019 19