The Washington State Boundary Review Board For King County

REGULAR MEETING

April 8, 2021

Zoom Meeting

1. CALL TO ORDER

   Chair Hamlin convened the meeting at 7:17 P.M.

2. ROLL CALL

   The following members were present:

   • Evangeline Anderson
   • Sylvia Bushnell
   • Mary Lynne Evans
   • Chandler Felt
   • Marlin Gabbert
   • Claudia Hirschey
   • Paul MacCready
   • Hank Margeson
   • James Polhamus
   • Stephen Toy
3. MINUTES:

   Regular Meeting - March 11, 2021

   Chair Hamlin presented the minutes of the Regular Meeting of March 11, 2021 for review and action by the Board members.

   Action: Marlin Gabbert moved and Mary Lynne Evans seconded the motion to adopt the minutes for the Regular Meeting of March 11, 2021.

   Board members voted unanimously in favor of approving this record of the Regular Meeting. There were no objections or abstentions.

4. BOUNDARY REVIEW BOARD ORIENTATION – Chris Mefford, Community Attributes – Economic Forecast 2021

   Mr. Mefford reported that Community Attributes is an economic planning firm – it is based in Washington and the preponderance of its clients are within the State.

   Community Attributes core competencies lie in the collection, analysis, and production of data that measures United States’ economic trends/recovery outlooks. The firm provides such data to Washington State – and to the Seattle region.

   Note: Mr. Mefford provided the informational charts that are attached hereto; this summary report on the presentation is linked to these charts.

   Current data and forecasts therefrom are based on a wide range of national, regional, and local factors. Certainly, the presence of Covid 19 had a huge (intensive and extensive) effect on the economy in 2020 – and will continue to do so both in 2021 and 2022.

   Mr. Mefford stated that the economic health of a community is based upon the well-being of community members. Uncertainty was certainly huge last year. Facts concerning health of the populace – and effects upon the economy – are evolving based on science.

   Those facts have resulted in a retracted economy – which will continue at some level until the Covid 19 curve is flattened.

   Facts determine that the vaccine must be provided at a scale that enables the decline of the virus in order to achieve a return to the economies – both basic business and enhanced opportunities.

   Mr. Mefford spoke about the real measures/meaning of economic recovery. It is forecast that we will initially achieve some normality. However, a recession is likely in the near- term in response to huge existing economic and fiscal impacts on federal and state governments.

   Mr. Mefford stated that – based upon Community Attributes studies -- it is forecast that it will take years to recover the Gross Domestic Projections (GDP) even in best of circumstances. Specifically:

   • Studies are conducted to determine quarterly/annual economic trends. It is useful to follow these trends – but harder to do so in volatile times. Context may be lost in actualization.

   • A 2% or greater GDP growth level is good. In Quarter 2 2020 there was a huge drop in growth ( 3.7%) – an amount that was not good but was less than anticipated by estimators. Moving forward, the GDP increased to 5% in Quarter 3, and remained high in Quarter 4.

   • The 2021 Quarter 1 stimulus leads to a prediction of slow but steady change in general terms. But there is more uncertainty to come. The stimulus is clearly helpful in many arenas, but very optimistic predictions are unlikely to be achieved in the near term.

     The balance between savings (and interest) vs. debt is of key significance and worrisome. Recessions promulgates savings. A pandemic causes more savings – to address fears and lack of options. In 2020 the economic balance resulted from a combination of savings and stimulus payments.

   • In our region the GDP from 2010 to 2020 in just about every sector has grown (except for manufacturing). Our metrics are more or less similar to national metrics.

   • Employment is a fundamental element required for recovery of the economy. Employment recovery is slow to occur after the steep fall encountered with Covid19.

     Jobs are slowly moving back up following the severity and immediacy of drop in unemployment which was severe in March and April. As economy has attempted to reopen it has been uneven climb, plateau, plateau, some fall back. Unemployment now is 6.3% -- down from 14.5 % a year ago. Vaccines should lead to jobs but there will be slow progress.

     Our region appears typical -- technology has been great but jobs hit hardest were consumer services -- typical of world. Manufacturing recovery will be slow – some manufacturing may never return.

     Unemployment management rules can create difficulties that typically could destroy a business.

     Underemployment and the leaving of the workforce by women are also two key matters of concern with respect to economic well-being of those groups – and to the greater economy. Statistics for these groups will skew the economy.

     The State of Washington is helping employers with financial management tools to assist in sustaining businesses.

     Employment is central to the creation of a good community. Good fundamental community leads to great community.

     Creation of a good community at a local level requires merging economics and planning. A good working community requires a good place to live to recruit talent and investment.

     Stimulus and jobs bills could help reinvigorate the economy -- but efficacy of this tool is not certain. Using the 2008 economic challenges as a model – the government should increase support for our communities.

     Nurturing a good business climate leading to a sustainable economic center is the best route for beginning recovery. Big employers come first -- then support businesses will come back. Microsoft and Amazon are leading the way to recovery. Transit is a key as well.

     There are numerous other factors that are impacting economic recovery, including:

     • Fraudulent requests for stimulus payments that limit effectiveness of economic stability -- there is limited data addressing the scope of this matter.

     • Real estate resources are challenging -- with the situation ranging between many persons threatened with eviction vs. those persons with improved funds (owing to constrained spending opportunities) to purchase limited available real estate at increased market prices.

     • Changes in spending habits -- e.g., retail spending has increased over time, but the form has changed substantially from in store shopping to remote options. This situation affects employment opportunities.

     • Various work patterns will be developed -- ranging from entirely continuing work at home to entirely returning to the workplace. Both central and satellite workplaces will likely be established both for fiscal and social purposes.

       Fiscal issues may lead to relocation of offices from Seattle to other communities owing to proposed taxes on businesses located in Seattle.

       Social issues relate to business philosophy – such as changes in operations (e.g. communications between in-person and electronic communications) which may result in differences in achieving successful efficacy.

       There is also a need for future health law and policy to ensure economic health equity – that is, there will be a need to address public health risk reward calculus.

       Mr. Mefford concluded that the economic weather is uncertain – there will be many varied situations on the road to our economic future. Benefits and drawbacks of economic plans and social may not be fully recognized or realized for a long period of time.

5. ADMINISTRATION:

   1. Chair’s Report

      General Business: Chair Hamlin and Lenora Blauman reported that the Board staff is currently working on several projects including: (1) coordination with King County Executive/Council Work Program; (2) coordinating activities with the State Association; (3) pre-development review for future Notices of Intention; (4) planning of orientation programs for 2021; (5) upgrading of technology systems; and (6) implementation of the 2021 - 2022 Biennial Budget.

      Washington State Association of Boundary Review Boards: Jay Hamlin reported that the Association -- under the guidance of Alison Sing -- is continuing to work on completing the survey of Board members and staff to determine areas of interest for further education (classes, web-site) to provide information with respect to regulations and policies relating to the duties and responsibilities of each Board. Chair Hamlin requested that all Board members complete this questionnaire as soon as possible.

      The Association is also beginning to consider plans for the Annual Fall Conference. Roberta Myers will coordinate the team that will organize that event.

   2. Committee Reports

      1. Budget Committee

         Lenora Blauman reported that the Board is implementing our 2021- 2022 Biennial Budget. Staff has recently met with the Board’s Budget Analyst to ensure that the Board is appropriately managing funds. There are no reported difficulties in our program.

      2. Legislative Committee — American Planning Association — Washington Chapter (APA- WA)

         Lenora Blauman stated that the WAPA Chapter is continuing to meet regularly to address issues of significance to the organization.

         The Legislature is moving rapidly through the process of establishing — and hearing — bills of interest.

         By March 19, 2021, the Senate and the House was required to move forward those bills selected to be viable on to Committee review and hearing and onto Executive Sessions as well as to Ways and Means (for those bills requiring specific funding allocations). APA- WA is following proposed bills relating to the Growth Management Act and comprehensive planning schedules. There are also bills addressing land development, climate change, transportation, and environmental management.

         • HB 1080: Capital Budget

         • HB 1099: Climate Improvements via Comprehensive Planning

         • HB1156: Increasing Voter Participation in Local Elections (boundary review boards outside King County)

         • HB 1157: Increasing Housing Supply through Growth Management Act and housing density tax incentives for local governments

         • HB 1232: Accessory Dwelling Units

         • HB 1241: Growth Management Act - Planning

         • SB 5042: Concerning Effective Date of certain actions... Growth Management Act

         • SB 5275: Land Area in Rural Development

         • SB 5368: Encouraging Rural Economic Development

         • SB 5373: Carbon Tax

         HB 1099 has been a key bill of interest and activity. It was sent to the Transportation Committee. The fate of this bill is unknown but it sems likely to fail passage. This failure is of major concern to APA-WA as the organization sees climate change as a major concern for policy planning and implementation of rules to address the serious impacts of climate change.

         These bills would not directly affect boundary review board authorities and responsibilities a prescribed by RCW 36.93, et seq.

      3. WSABRB Legislative Committee/King County Boundary Review Board Legislative Committee:

         Mary Lynne Evans, speaking on behalf of the King County Board’s Legislative Committee and the Association Legislative Committee, reported that the WSABRB Legislative Committee continues to meet on a regular basis to develop and implement policies, plans, and systems to work with Legislature 2021. Information is being obtained from “Legi.scan.”

         Ms. Evans reported that particular interest is continuing to be directed to SSB 5368 -- which directly affects rural economic development -- but also allows annexation via interlocal agreements. Annexations by interlocal agreements are subject to boundary review board evaluation under RCW 36.93. However, there are limited opportunities to conduct public hearings and limited rights to appeal such actions.

         Ms. Evans reported that the previous statutory mandate (SB 5525) sets the basic authorities/requirements for interlocal agreements for annexation. There is no viable opportunity for modifying this statute for ILA annexations at this time. It is possible that SSB 5368, if adopted, will be codified in RCW 35.14 which is a core statute addressing ILA annexations.

         Ms. Evans reported that the Association Legislative Team submitted recommendations for enhancing RCW 35.14 (via SB 5368) by establishing requirements for the proponents of the ILA -- and the Notice of Intention for the action – to comprehensively address the provisions of RCW 36.93 (e.g., RCW 36.93.100-.150 and RCW 36.93.170- .180).

         The bill has been changed in major ways, but our proposed revisions remain in the legislation. Specifically, the bill provides requirements that cities & counties proposing ILA for annexations must consider – including fiscal studies addressing evaluation of commercial and residential tax bases (e.g., revenues and expenditures) for governance at annexation and over time. All proposals must be reviewed as prescribed by RCW 36.93. These requirements would apply both to counties that have boundary review boards and those counties which provide for other authorized bodies (e.g., County Commission, County Annexation Review Board) to vet and act upon applications for creation/changes to jurisdictional boundaries.

         Jurisdictions may receive technical support from the State to help communities to make plans that comply with the Growth Management Act (GMA).

         This bill initially proposed tax benefits to assist cities in funding for governance of annexed properties. The revision does not provide tax benefits at this time. Cities that do can get streamlined sales tax if it ever comes back.

         The bill has been moved forward with a “do pass” recommendation to the full House. As of this writing the bill is anticipated to continue to the next review processes – e.g. Ways and Means. The bill is now on second reading. If it succeeds in gaining approval at this

         point, then it will pass to third reading and then to final action. There is positive bipartisan support for the adoption of this bill leading to optimism (but not certainty) that the bill will become law.

         ***

         The Association will continue to follow and support SSB 5368.

   3. Executive Secretary’s Report

      ORIENTATION PROGRAMS: Ms. Blauman is continuing planning for a new cycle of orientation programs in 2021.

      She is actively working with the Sound Cities Association to schedule a future program.

      Other future opportunities include:

      • King County Local Services Unit

      • Puget Sound Regional Council – Vision 2050

      • Municipal Research Services Center

      • APA-WA Legislative Team

   4. General Correspondence: Chair Hamlin reported that there was no general correspondence for consideration at this Regular Meeting.

6. NEW BUSINESS:

   1. New Files:

      Ms. Blauman reported that the Board has no new Notices of Intentions on file at this time.

   2. Future Files

      The Board has also received two preliminary files for informal consideration in advance of the proponents’ submitting completed Notices of Intention. Two additional complete files are anticipated in the second quarter of 2021.

      The Board has been advised of several potential proposed future Notices of Intention:

      • Auburn (2 files)
      • Black Diamond (2 files)
      • Carnation (1 file)
      • Enumclaw (8 files)
      • Issaquah (2 files)
      • Maple Valley (3 files)
      • North Bend (4 files)
      • Renton (5 files)
      • Seattle (4 files)
      • Tukwila (2 files)
      • Water District No. 90 (1 file)
      • Bellevue (4 files)
      • Bothell (1 file)
      • Duvall (5 files)
      • Federal Way (3 files)
      • Kent (5 files)
      • Milton (1 file)
      • Redmond (4 files)
      • Sammamish (2 files)
      • Snoqualmie (4 files)
      • Vashon Sewer District (1 file)

      Note: There are 13 unincorporated urban areas in King County that are not assigned to a Potential Annexation Area.

7. ADJOURNMENT

   Chair Hamlin adjourned the Regular Meeting at 8:47 P.M.