2021/04/14 Council Agenda Packet

AMENDMENT NO. 2 TO THE WASHINGTON MULTI -CITY BUSINESS LICENSE AND TAX PORTAL AGENCY INTERLOCAL AGREEMENT BY AND BETWEEN THE CITIES OF BELLEVUE, EVERETT, SEATTLE, AND TACOMA This Amendment modifies that certain Washington Multi -City Business License and Tax Portal Agency Interlocal Agreement, dated March 1, 2014 ("ILA"), entered into by and between the Cities of Bellevue, Everett, Seattle, and Tacoma (collectively, the "Original Principals"), and as amended by Amendment No. 1 thereto, pursuant to FileLocal Resolution No. FL2017-04, adopted on June 12, 2017. WHEREAS, Section 13.g. of the ILA, as amended on June 12, 2017, pursuant to FileLocal Resolution No. FL2017-04, provides a method for allocating Agency costs among the Participating Cities for the years 2014-2021; and WHEREAS, the Principals (the cities of Bellevue, Des Moines, Everett, Lake Forest Park, Renton, Seattle, and Tacoma) now desire to further amend Section 13.g. of the ILA to revise how Agency costs are allocated among Participating Cities during the years 2022-2024, so that the allocation method used in years 2014-2021 may continue to be used through 2024; and WHEREAS, Section 18 of the ILA allows amendments to the ILA, and specifically allows amendments affecting the contribution responsibilities of the Principals, so long as such amendments are approved by the legislative authorities of all Principals; NOW THEREFORE, the Principals hereby agree to amend the ILA as follows: 1. Section 13.g. of the ILA is hereby amended to read as follows: g. Cost Allocation and Cost Recovery Principles. The PORTAL AGENCY budget shall be generally allocated between all Participating Cities based on the number of Transactions processed for each City on the Portal. In years 2014 through 2024, the number of Transactions for the Original Principals shall be based on 2012 historical actual pre -Portal use Transaction Counts (as set forth in Exhibit A). In years 2014 through 2021, the City Transaction Count for any other Participating City shall be based on the most recent historical data for that City prior to it joining the Portal. From and after 2022, the allocation among other Participating Cities will be determined by considering the actual number of Transactions (if the City had joined before 2022), historical tax and license information, and the experience of the Original Principals as to how quickly businesses have adopted use of the Portal since its launch. The details of the cost allocation calculation shall be set forth in the Portal Operations Policy. Nothing in this Agreement shall be construed to prohibit the Executive Board from including factors in addition to the number of City Transactions in the cost allocation formulas as between Participating Cities, so long as the primary basis for allocation remains the City Transaction count. 2. All other terms of the ILA remain in full force and effect. // Page 1 of 3