[MUSIC] [MUSIC]
-- GOOD MORNING. THE HUMAN
SERVICES, LABOR AND ECONOMIC
DEVELOPMENT COMMITTEE MEETING OF
THE SEATTLE CITY COUNCIL WILL
NOW COME TO ORDER. IT IS 9:33
A.M. AUGUST 21st, 2026. I'M
COUNCILMEMBER ALEXIS MERCEDES
RINCK, CHAIR OF THE COMMITTEE.
WILL THE COMMITTEE CLERK PLEASE
CALL THE ROLL? CHAIR RINCK HERE.
-- VICE CHAIR FOSTER HERE.
COUNCILMEMBER HOLLINGSWORTH
HERE. COUNCILMEMBER SAKA
MORNING.
-- HERE.
-- THERE ARE FOUR MEMBERS
PRESENT AND ONE EXCUSED.
-- THANK YOU. LET THE RECORD
REFLECT THAT COUNCILMEMBER
JUAREZ IS EXCUSED. WE WILL NOW
MOVE ON TO APPROVAL OF TODAY'S
AGENDA. IF THERE IS NO
OBJECTION, THE AGENDA WILL BE
ADOPTED. HEARING NO OBJECTION,
THE AGENDA IS ADOPTED. WELCOME,
EVERYONE. TODAY'S AGENDA IS
LENGTHY, WITH FIVE SUBSTANTIVE
ITEMS, INCLUDING A BRIEFING,
DISCUSSION, PUBLIC HEARING AND
VOTES ON TWO BUSINESS
IMPROVEMENT AREA ORDINANCES ONE
FOR THE BROADWAY BIA IN CAPITOL
HILL AND ONE FOR THE BALLARD
ASSESSMENT FORMULA AMENDMENT.
WE'LL ALSO HAVE A DISCUSSION
AND VOTE ON THE AMENDED DOMESTIC
WORKERS ORDINANCE, WHICH THIS
COMMITTEE WAS BRIEFED ON DURING
OUR LAST MEETING. WE'LL THEN
HAVE A BRIEFING FROM CENTRAL
STAFF ON POLICY CONSIDERATIONS,
AND WE WILL HEAR FROM
COUNCILMEMBERS ON THEIR
AMENDMENT CONCEPTS FOR THE FAIR
PRICING AND TRANSPARENCY
ORDINANCE. AND LASTLY, WE WILL
HAVE A BRIEFING AND DISCUSSION
ON AN ORDINANCE RELATED TO
COMMERCIAL LEASE TRANSPARENCY.
WITH THAT, WE WILL NOW OPEN THE
PUBLIC COMMENT PERIOD. PUBLIC
COMMENTS SHOULD RELATE TO ITEMS
ON TODAY'S AGENDA OR WITHIN THE
PURVIEW OF THIS COMMITTEE. TWO
OF TODAY'S ITEMS DO REQUIRE
PUBLIC HEARINGS, SO IF YOU ARE
REGISTERED FOR TODAY'S PUBLIC
HEARING ON AGENDA ITEMS ONE AND
TWO RELATING TO THE CAPITOL HILL
BIA AND THE BALLARD BIA, PLEASE
HOLD YOUR COMMENTS RELATING TO
THOSE BIA'S UNTIL WE REACH THOSE
AGENDA ITEMS, AND THE PUBLIC
HEARINGS WILL BEGIN WITH EACH
AGENDA ITEM. SO, CLERK, HOW MANY
SPEAKERS DO WE HAVE SIGNED UP
FOR TODAY?
-- CURRENTLY WE HAVE TEN IN
PERSON AND FIVE REMOTE SPEAKERS.
-- THANK YOU. EACH SPEAKER WILL
HAVE TWO MINUTES AND WE WILL
START WITH IN PERSON SPEAKERS.
FIRST CLERK WILL YOU PLEASE READ
THE PUBLIC COMMENT INSTRUCTIONS?
-- THE PUBLIC COMMENT PERIOD
WILL BE MODERATED IN THE
FOLLOWING MANNER. THE PUBLIC
COMMENT PERIOD IS UP TO 60
MINUTES. SPEAKERS WILL BE CALLED
IN THE ORDER IN WHICH THEY
REGISTERED. SPEAKERS WILL
ALTERNATE BETWEEN SETS OF
IN-PERSON AND REMOTE SPEAKERS
UNTIL THE PUBLIC COMMENT PERIOD
IS ENDED. PLEASE BEGIN BY
STATING YOUR NAME AND THE ITEM
YOU'RE ADDRESSING. SPEAKERS
WILL HEAR A CHIME WHEN 10
SECONDS ARE LEFT OF THEIR TIME.
SPEAKERS. MIKES WILL BE MUTED IF
THEY DO NOT END THEIR COMMENTS
WITHIN THE ALLOTTED TIME TO
ALLOW US TO CALL IN THE NEXT
SPEAKER. THE PUBLIC COMMENT
PERIOD IS NOW OPEN, AND WE WILL
BEGIN WITH THE FIRST SPEAKER ON
THE LIST.
-- THANK YOU SO MUCH. SO I'M
GOING TO READ THE FIRST FIVE,
JUST SO FOLKS KNOW HOW TO ORIENT
THEMSELVES. SO FIRST, WE HAVE
JOAN PAULSON, FOLLOWED BY CLIFF
HOLLAND, THEN ROBERT SINGLETON,
AMANDA DALTON, AND THEN DAVID
HILL. ALL RIGHT, COMING
TOGETHER. GREAT.
-- YES WE ARE.
-- THANK YOU. I'M JOAN PAULSON,
I'M A BOARD MEMBER OF OF THE
CENTRAL AREA SENIOR CENTER AND
I'M WHICH IS IN DISTRICT NUMBER
THREE. AND THIS IS A
CONTINUATION OF THE AUGUST 7th
MEETING AND INFORMATION THAT WAS
SHARED ABOUT HUMAN SERVICES AND
THE REIMBURSEMENT PROCESS THAT
IS BEING ADJUSTED AS TIME GOES
ON. I'M BASICALLY SAYING THAT
OUR, THE, OUR ORGANIZATION HAS
BEEN NOT PAID OR REIMBURSED FOR
MAY, JUNE AND JULY AT A COST OF
$30,000 EACH MONTH. NOT BEING
ABLE TO PAY BILLS AND STAFFING.
SINCE JANUARY, THE PROCESS FOR
REIMBURSING PAPERWORK HAS
CHANGED 5 TO 6 DIFFERENT TIMES,
WHICH REQUIRES ADJUSTMENT IN
TERMS OF ACCOMMODATING THOSE
CHANGES. THIS IS THE DOWNFALL
THAT HAS HAPPENED IN TERMS OF
THE OVERALL PROCESS THIS YEAR,
AND THAT NEEDS TO BE MITIGATED
IN ORDER TO ALLOW SERVICES TO BE
PAID FOR AND PROVIDED, BUT
REIMBURSED IN A MORE APPROPRIATE
TIME FRAME OF 60 TO 90 DAYS OUT.
WAITING TIME. THANK YOU FOR MY
TIME. AND NOW CLIFF WILL TAKE
IT. AS PRESIDENT.
-- I'M CLIFF HOLLAND, I'M THE
BOARD PRESIDENT AT CENTRAL AREA
SENIOR CENTER, AND ALONG WITH
WHAT JOAN SAYS, WE'RE REALLY
IMPACTED BY THE SLOW
REIMBURSEMENTS. AFTER OUR AFTER
WE INVOICE, IT TAKES 3 TO 4
MONTHS TO GET REIMBURSEMENTS.
THIS HAS CAUSED US TO HAVE SHORT
DELAY IN PAYMENTS WITH OUR
CONTRACTORS BEING THE PROGRAM
FOLKS. ALSO, STAFF HAS BEEN
DELAYED GETTING PAYMENTS AND
EVERYTHING. OUR RESERVE FUNDS
THAT WE HAD ARE DEPLETED BECAUSE
WE HAVE TO USE OUR FUNDS. THEN
WE INVOICE. THAT BILL MEANS,
OKAY, I'M ABOUT TO GET SHOT,
BUT THAT INVOICE. OKAY, GOOD.
THAT INVOICING. THEN IT TAKES 3
TO 4 MONTHS AFTER THAT, WHICH
CAUSES US A MAJOR, MAJOR
SHORTFALL IN OUR REVENUE. OUR
OUR RESERVE FUNDS HAVE BEEN
DEPLETED WHILE WE'RE WAITING FOR
THESE REIMBURSEMENTS
-- THANK YOU SO MUCH. MY TEAM IS
GOING TO ACTUALLY REACH OUT TO
YOU TO GET GET YOU SOME CONTACT
INFORMATION AND SEE HOW WE CAN
HELP AND SUPPORT.
-- THANK YOU VERY MUCH. THANK
YOU. HELP A BROTHER.
-- THANK YOU FROM DISTRICT
THREE.
-- THANK YOU. AND AS A REMINDER
TO ALL THAT LITTLE BING MEANS
YOU HAVE 10 SECONDS LEFT AND
NOBODY GETS HURT.
-- [LAUGHTER]
-- OKAY ALL RIGHT, NEXT UP ON
HERE, I HAVE CLIFF HOLLAND,
CLIFF OH, WE'RE SORRY, SIR, YOU
WERE OKAY. APOLOGIES. NEXT UP IS
ROBERT. WE'RE ABOUT TO GO ON
COUNCIL RECESS. OH, SORRY.
ROBERT, PLEASE
-- GOOD MORNING CHAIR. MY NAME
IS ROBERT SINGLETON AND I'M HERE
WITH CHAMBER OF PROGRESS. I'M.
WE'RE PART OF A TECH INDUSTRY
ASSOCIATION THAT SUPPORTS
INCLUSIVE INNOVATION. I'M HERE
TODAY IN OPPOSITION TO THE
PROPOSED DATA DRIVEN PRICING
BAN. BECAUSE OF THE PRACTICAL
RESULT OF THIS ORDINANCE WOULD
BE WOULD BE TO MAKE SEATTLE AN
EVEN MORE EXPENSIVE CITY FOR
RESIDENTS AND EVEN HARDER PLACE
TO DO BUSINESS OR FOR BUSINESSES
TO OPERATE. TO BE CLEAR, WE
AGREE THAT CONSUMERS SHOULD BE
PROTECTED FROM PERSONALIZED
PRICE INCREASES. HOWEVER, WE
HAVE THREE PARAMOUNT CONCERNS
WITH THIS MEASURE AS WRITTEN
THAT, WHEN ADOPTED, WOULD WORK
IN TANDEM TO MAKE SEATTLE AN
ISLAND OF UNAFFORDABILITY. THIS
ORDINANCE OPENLY LIMITS AND
FURTHER DISCOURAGES BUSINESSES
FROM OFFERING DISCOUNTS AND
LOYALTY REWARDS FOR THEIR
CUSTOMERS BASED UPON THE WAY
THEY ARE DEFINED AND IN CREATING
MULTI-PAGE COMPLIANCE BURDENS ON
THOSE OFFERING LEGITIMATE
DISCOUNTS TO THE LETTER OF THE
LAW. THIS MEASURE IS PAIRED WITH
A PRIVATE RIGHT OF ACTION,
MEANING THAT ANY AND EVERY PRICE
CHANGE COULD BE SUBJECT TO A
FRIVOLOUS LAWSUIT WITH OR
WITHOUT MERIT, FORCING EVERY
BUSINESS TO JUSTIFY EVERY PRICE
CHANGE FOR EVERY PRODUCT,
POTENTIALLY DIVULGING SENSITIVE
INFORMATION. BUT MORE OFTEN THAN
NOT, HAVING TO SPEND TIME,
ENERGY, AND MONEY IN RESPONSE.
AND THREE, THIS ORDINANCE CAN
ONLY APPLY IN THE JURISDICTION
OF SEATTLE, WHICH WILL CHANGE
INHERENTLY. SEGMENT OUT THE
OPERATIONAL PRACTICES OF EVERY
BUSINESS THAT DOES BUSINESS IN
AND OUTSIDE THE CITY LIMITS,
WHICH WILL AGAIN COST TIME,
ENERGY AND MONEY, ALL OF WHICH
WILL BE PASSED ON THE CONSUMER
IN THE FORM OF HIGHER PRICES.
TAKEN TOGETHER, LOCAL BUSINESSES
COULD BE FORCED TO RESPOND TO
THE ORDINANCE AS FOLLOWS AND ALL
SPECIALIZED COUPONS, DISCOUNTS
AND LOYALTY REWARDS BECAUSE
IT'S SIMPLY EASIER IN THIS,
CHEAPER THAN TRYING TO FIGURE
OUT IF THEY APPLY AND UNDER WHAT
CONDITIONS. AS PER THE
ORDINANCE, ESPECIALLY WHEN
IMPROPER COMPLIANCE OPENS YOU UP
TO LEGAL SCRUTINY, PRESUME THAT
YOU WILL BE SUED AT SOME POINT
BECAUSE PRICES NEED TO CHANGE
FOR MANY LEGITIMATE REASONS ALL
THE TIME, AND DYNAMICALLY SO IN
OUR MODERN, DIGITALLY CONNECTED
WORLD. AND ANYONE DOESN'T LIKE
THOSE PRICE CHANGES CAN CAUSE
YOU TO SPEND TIME, ENERGY, AND
MONEY TO FIGHT IMPROPER
ASSUMPTIONS. AGAIN, EVEN IF THE
CHALLENGE IS WITHOUT MERIT. AND
THREE LIKELY, LIKELY INCREASED
PRICES WITHIN THE CITY LIMITS IN
PROACTIVE ANTICIPATION OF LEGAL
AND COMPLIANCE COSTS, THE END
RESULTS ARE THAT SEATTLE
RESIDENTS WILL HAVE
SUBSTANTIALLY FEWER DEALS AND
COUPONS, AND HIGHER OVERALL
COSTS, AND FEWER OPTIONS FOR
PRODUCTS AND SERVICES. BECAUSE
COMPLIANCE AND LEGAL COSTS
DISPROPORTIONATELY FALL ON
SMALLER COMPANIES. THANK YOU.
-- THANK YOU ROBERT. NEXT UP WE
HAVE AMANDA DALTON.
-- GOOD MORNING, CHAIR AND
MEMBERS OF THE COMMITTEE, AMANDA
DALTON. I'M HERE ON BEHALF OF
THE NORTHWEST GROCERY RETAIL
ASSOCIATION. AS I SHARED AT THE
LAST HEARING, MY MEMBERS SUPPORT
PROHIBITING THE USE OF PERSONAL
INFORMATION TO INCREASE PRICES.
BUT THE ORDINANCE IS NARROW
EXEMPTIONS, BROAD DISCLOSURE
REQUIREMENTS, AND SIGNIFICANT
PRIVATE LITIGATION EXPOSURE
CREATES SUBSTANTIAL UNCERTAINTY
REGARDING HOW COVERED RETAILERS
MAY CONTINUE TO DELIVER,
COMMUNICATE AND ADMINISTER
DISCOUNTS THAT CONSUMERS RECEIVE
TODAY THROUGH RETAIL REWARDS
PROGRAMS. AS YOU HAVE HEARD FROM
ME, WE DISAGREE WITH PROPONENTS
THAT THE ORDINANCE BEFORE YOU,
WITHOUT ANY AMENDMENTS, ENSURES
THAT SEATTLE CUSTOMERS WILL
CONTINUE TO HAVE THE SAME ACCESS
TO COUPONS AND DISCOUNT PROGRAMS
THAT THEY DO TODAY.
SPECIFICALLY, WE BELIEVE THAT AS
CURRENTLY DRAFTED, THE ORDINANCE
WILL REDUCE THE AVAILABILITY OF
LOYALTY PROGRAM DISCOUNTS AND
MANUFACTURER FUNDED COUPONS FOR
SEATTLE CUSTOMERS. I WANT TO
PROVIDE A FEW EXAMPLES OF
DISCOUNTS AND PERSONALIZED
SAVINGS THAT WE BELIEVE ARE
PROHIBITED UNDER THE CURRENT
DRAFT CATEGORY. DISCOUNTS BRAND
WINBACK DISCOUNTS, COMPETITIVE
BRAND SWITCHING DISCOUNTS, FOR
EXAMPLE, AN EMERGING BRAND
WANTING TO OFFER A COUPON
THROUGH A THIRD PARTY WOULD NOT
BE ABLE TO RELY ON PURCHASE
HISTORY TO TARGET CUSTOMERS OF
THE BIGGER BRANDS. OR IF YOU
REGULARLY BUY CHEERIOS AND
KELLOGG'S WANTS TO GIVE YOU $2
OFF A BOX TO ENCOURAGE YOU TO
TRY ITS PRODUCT INSTEAD, NOT
ALLOWED HOUSEHOLD ESSENTIALS AND
REPLENISHMENT DISCOUNTS. IF YOU
RECENTLY BOUGHT TOILET PAPER AND
CHARMIN WANTS TO GIVE YOU $5 OFF
YOUR NEXT BOX WHEN YOU'RE LIKELY
TO NEED MORE NOT ALLOWED RETURN
OFFICE OFFERS BASKET LEVEL
SAVINGS, CROSS PRODUCT STORE
OFFERS, MERCHANT TARGETS, REPEAT
PURCHASE DISCOUNTS, AN ABANDONED
CART, DISCOUNTS, NONMEMBER
GROCERY DISCOUNTS. IF
MANUFACTURERS CAN NO LONGER
EFFECTIVELY TARGET DISCOUNTS TO
INTERESTED CUSTOMERS, THEY MAY
REDUCE PROMOTIONAL SPENDING,
REDUCE THE VALUE OF OFFERS, OR
OFFER FEWER PROMOTIONS
ALTOGETHER JUST FOR CUSTOMERS
WHO LIVE AND SHOP IN SEATTLE.
THE ORDINANCE, AS WRITTEN, WILL
MAKE GROCERIES LESS AFFORDABLE
FOR YOUR CUSTOMERS, PERIOD. WE
ENCOURAGE YOU TO SUPPORT
AMENDMENTS THAT MAKE THIS
DISTINCTION CLEAR AND ENSURE
THAT ORDINANCE ADVANCES
SEATTLE'S GOALS OF AFFORDABILITY
AND GROCERY ACCESS, RATHER THAN
UNDERMINING THEM.
-- THANK YOU AMANDA. NEXT UP,
WE'LL HAVE DAVID HILL FOLLOWED
BY ZO MARCH.
-- GOOD MORNING. MY NAME IS
DAVID HILL. I'M SPEAKING TODAY
ON BEHALF OF THE TRANSIT RIDERS
UNION IN FAVOR OF THE FAIR
PRICING ORDINANCE. I'VE BEEN OUT
OF WORK FOR MOST OF THIS YEAR,
AND WHILE THAT DOES FREE UP A
LOT OF TIME TO COME. SEE YOU
GOOD FOLKS. ABOUT THREE TIMES A
MONTH, IT DOES MEAN THAT I'VE
HAD TO WORK TO MAKE SURE THAT I
CAN STRETCH EVERY DOLLAR TO THE
FULLEST, SO THAT I CAN GET THE
NUTRITION I NEED TO CONTINUE
MAKING THESE MEETINGS. BIG
CORPORATE GROCERS SHOULD NOT BE
ALLOWED TO USE INVASIVE TECH AND
SURVEILLANCE ALGORITHMS TO GUESS
WHAT PRICE I'M WILLING TO PAY
AND PUSH PRICES UP. OPPONENTS
CLAIM THIS BILL WILL HURT
EVERYDAY LOYALTY PROGRAMS, BUT
THAT'S SIMPLY UNTRUE. THOSE
BASIC DISCOUNT CARVE OUTS ARE
ALREADY BUILT RIGHT INTO THIS
MEASURE. SEATTLE RESIDENTS BASIC
NUTRITION MUST BECOME OR MUST
COME BEFORE CORPORATE PROFITS.
PLEASE PROTECT WORKING FAMILIES
AND VOTE YES TO PASS THIS
ORDINANCE ON TO THE FULL
COUNCIL. THANK YOU
-- THANK YOU DAVID. NEXT, WE'LL
HEAR FROM ZOE MARCH, FOLLOWED BY
KRISTEN WILDER.
-- GOOD MORNING, COUNCILMEMBERS.
MY NAME IS MARCH AND I WORK AT
PCC CORNER MARKET IN DOWNTOWN
SEATTLE, JUST A FEW BLOCKS AWAY
FROM HERE. I'M SPEAKING TODAY TO
ASK YOU TO PASS THE FAIR PRICING
AND TRANSPARENCY ORDINANCE WITH
NO CORPORATE AMENDMENTS.
GROCERIES ARE MORE EXPENSIVE NOW
THAN EVER, AND SHOPPERS SPEND
TIME LOOKING AT ADS AND SALES,
DECIDING WHAT FITS THEIR BUDGETS
EACH WEEK, WHEN ITEMS THEY
EXPECT TO BE ON SALE AREN'T, OR
WHEN PRICES AT THE REGISTER
DON'T MATCH THE PRICE ON THE
SHELF. CUSTOMERS SPEAK UP. SO
WHEN SOME AI DRIVEN TECH CHARGES
ONE CUSTOMER MORE THAN ANOTHER
BECAUSE OF DATA, BIG GROCERS
TRACK THE STAFF MEMBER AT THE
CHECKSTAND HAS TO DEAL WITH IT,
NOT THE EXECUTIVE WHO MADE THAT
DECISION. MY FELLOW GROCERY
WORKERS DON'T DESERVE TO BE PUT
IN THAT POSITION. NOW, THIS
ORDINANCE EXEMPTS MY EMPLOYER
AND THAT'S WHY THIS MATTERS SO
MUCH TO ME. THIS HELPS LEVEL THE
PLAYING FIELD WHEN IT COMES TO
TRACKING DATA AND THE NEWEST AI
PRICING TECH. WE WILL NEVER BE
ABLE TO KEEP UP. NOT THAT WE
EVEN WANT TO HEALTHY COMPETITION
IS OVER. QUALITY CUSTOMER
SERVICE AND FAIR PRICING, NOT
MANIPULATING OUR CUSTOMERS TO
PAY MORE. ADDITIONALLY, THE
PRIVATE RIGHT OF ACTION IN THIS
ORDINANCE IS SO IMPORTANT. WE
ALL KNOW WARNINGS OF FRIVOLOUS
LAWSUITS, WARNINGS COMING FROM
THOSE WHO BENEFIT FROM THESE
PRICING SCHEMES ARE NONSENSE. AN
ORDINANCE RELYING ON ENFORCEMENT
BY AN UNDERSTAFFED, UNDERFUNDED
AGENCY WILL NEVER LIVE UP TO ITS
INTENTION, AND VIOLATIONS WILL
SNEAK THROUGH THAT AND PUSHING
HIGHER GROCERY BILLS ON
SEATTLE'S FAMILIES IS EXACTLY
WHAT THE LARGE CORPORATIONS
OPPOSING THIS ORDINANCE WANT.
THANK YOU FOR YOUR TIME, AND
PLEASE PASS THIS ORDINANCE AS
WRITTEN WITHOUT CORPORATE
AMENDMENT.
-- [APPLAUSE]
-- THANK YOU. SO NEXT, WE'LL
HEAR FROM KRISTEN WILDER,
FOLLOWED BY LOMPO.
-- GOOD MORNING, COUNCILMEMBERS.
MY NAME IS KRISTEN WILDER AND I
WORK AS A FLORAL MANAGER AT
UPTOWN QSC. I AM HERE TODAY TO
ASK YOU TO PASS THE FAIR
PRICING. TRANSPARENCY ORDINANCE
WITH NO CORPORATE AMENDMENTS.
WHEN I WORK AT A CHECKSTAND, I
SAW CUSTOMERS WATCHING PRICES
VERY CLOSELY. SOMETIMES I'D SAY
HI WITH A SMILE ON MY FACE, AND
THEY JUST STARE AT THE SCREEN AS
I RANG THEM UP, MAKING SURE THEY
GOT THE PRICE THEY WERE HUNTING
FOR, AND IF THEY DIDN'T,
THEY'D LET US KNOW.
SURVEILLANCE PRICES PUT US IN A
POSITION OF HAVING TO EXPLAIN
CUSTOMERS THAT SOME ALGORITHMS
IN THE BLACK BOX DECIDE THAT
THEY SHOULD PAY MORE THAN
SOMEONE ELSE. THIS, WHICH MAKES
OUR WORK THAT MUCH HARDER. I
WANT TO DELIVER GREAT CUSTOMER
SERVICE, NOT TECH SUPPORT. AND
HERE IS THE OTHER THING. GROCERY
STORE WORKERS ARE CUSTOMERS TOO.
I'VE READ CUSTOMER REPORTS,
INVESTIGATIONS SHOWING THAT
SURVEILLANCE PRICES COULD COST
SEATTLE FAMILIES OVER HUNDREDS
OF DOLLARS MORE A MONTH. I
DON'T EVEN SPEND HUNDREDS OF
DOLLARS A MONTH ON GROCERIES
RIGHT NOW. I DEFINITELY DON'T
HAVE EXTRA HUNDREDS OF DOLLARS
TO HAND OVER TO A GIANT GROCERY
CORPORATION. NOW, I KNOW THE
GROCERY INDUSTRY LOBBY WANTS US,
WANTS AN AMENDMENT TO ALLOW
GROCERY STORES TO USE THE PRICES
TO OFFER SO-CALLED DISCOUNTS.
DON'T GIVE IT TO THEM. WHAT
THEY'RE ASKING FOR IS LOOPHOLES
THAT WILL ALLOW THEM TO RUN THE
SCHEME ON MOST GROCERY STORES,
TRANSITIONS, RENDERING THIS
ORDINANCE USELESS. THIS COUNCIL
SHOULD BE TRANSPARENT AND
APPLIED FAIRLY, NOT SECRETLY
TOLERANT BY ALGORITHMS THAT KNOW
MORE ABOUT MY PERSONAL HABITS
THAN MY FAMILY DOES. PLEASE PASS
THIS ORDINANCE AS WRITTEN
WITHOUT CORPORATE AMENDMENTS.
SEATTLE FAMILIES AND SEATTLE
WORKERS DESERVE TO KNOW WE'RE
ALL PAYING THE SAME PRICES FOR
THE SAME THINGS. THANK YOU.
-- YEAH.
-- [APPLAUSE]
-- THANK YOU. KRISTEN LUM.
-- THANK YOU, COUNCILMEMBERS. MY
NAME IS LIAM HOE AND I AM THE
GENERAL MANAGER FOR THE TRANSIT
RIDERS UNION, AS WELL AS ONE OF
THE CO-CHAIRS OF THE STATE HOUSE
STAY HEALTHY COALITION. I WANT
TO FIRST START BY THANKING YOU
BECAUSE I HAVE NOT HAD THE
OPPORTUNITY TO THANK
COUNCILMEMBER FOSTER AND THE
ENTIRE COUNCIL FOR PASSING SUCH
A STRONG JUNK FEES BAN
LEGISLATION WHICH PROVIDED
FAIRNESS, TRANSPARENCY AND
ACCOUNTABILITY FOR FAMILIES WHO
ARE STRUGGLING TO STAY IN THEIR
HOMES OR EVEN FIND THEM. AND SO
I'M HERE TO ASK FOR YOU TO DO
THE SAME FOR FAMILIES WHO ARE
STRUGGLING TO PUT FOOD ON THEIR
TABLES, AND THEY ARE REALLY
STRUGGLING. IN THE RECENT FOOD
WASHINGTON SURVEY, WHICH COVERS
2026, THE FIRST QUARTER, 48% OF
HOUSEHOLDS, THAT'S ALMOST HALF
OF HOUSEHOLDS USED FOOD
ASSISTANCE IN THE PAST MONTH,
69% OF FOOD INSECURE HOUSEHOLDS
REPORTED REDUCING THE QUANTITY
AND QUALITY OF FOOD THAT THEY
EAT BECAUSE OF RISING PRICES.
EVEN HOUSEHOLDS EARNING 75,000
TO 150,000 SAW A 25% FOOD
INSECURITY RATE. FAMILIES ACROSS
OUR STATE ARE STRUGGLING TO PUT
FOOD ON THE TABLE, SO WE NEED
THE FAIR AND TRANSPARENT PRICING
ORDINANCE NOW. EVERYONE NEEDS TO
EAT THIS BILL PRIORITIZES
HEALTH, WELLNESS AND FAIRNESS
OVER OPAQUE CORPORATE PROFIT
MODELS BY PROTECTING SEATTLE
FAMILIES FROM ALGORITHMIC
PRICING THAT USES PERSONAL DATA
TO CHANGE THE PRICE, EVEN FOR
TWO SHOPPERS SHOPPING THE SAME
AISLE. IT ALSO PROTECTS SMALL
AND LOCAL RETAILERS BY
PREVENTING THE BIG CHAINS FROM
BASICALLY USING SURVEILLANCE
PRICING TO UNDERCUT THEM TO
DRIVE THEM OUT OF BUSINESS AND
THEN LEAVE CONSUMERS WITH NO
OPTIONS. BESIDES THE PRICE
GOUGING THAT THE CORPORATE
CHAINS ARE USING. THANK YOU SO
MUCH FOR YOUR TIME. PLEASE PASS
THIS ORDINANCE WITHOUT ANY
CORPORATE AMENDMENTS.
-- [APPLAUSE]
-- THANK YOU. NEXT, WE'LL HEAR
FROM MAYA MORALES, FOLLOWED BY
DUSTIN LAMBRO.
-- GOOD MORNING EVERYONE. GOOD
MORNING COUNCIL. I'M HERE TO
SPEAK TO YOU TODAY ABOUT THE
FAIR PRICING ORDINANCE. I WANT
TO FIRST SAY THAT I'M REALLY
PROUD OF OF BOTH THE MAYOR'S
OFFICE AND THE COUNCIL FOR
TAKING THIS UP. IT AS YOU KNOW,
GROCERY WORKERS, EVERYONE REALLY
HERE WHO BUYS GROCERIES AND CAN
SPEAK TO THE FACT THAT IT'S
GOTTEN MORE EXPENSIVE AS WELL AS
HOUSING ORGANIZERS, ALL OF US
CAN REALLY RELATE TO THE FACT
THAT OUR GROCERIES ARE BECOMING
LESS AFFORDABLE. AND SO THIS IS
SO COMMON SENSE. THANK YOU SO
MUCH FOR SPONSORING THIS. I WANT
TO JUST ADDRESS A FEW THINGS. IT
IS NOT COMPLEX TO OFFER BASIC
DISCOUNTS. THAT IS, THAT IS NOT
SOMETHING THAT NEEDS TO BE
COMPLEX. WE'VE DONE THAT FOR
YEARS. BEFORE WE HAD AI POWERED
TECH. THAT WAS SOMETHING THAT
WAS TOTALLY ATTAINABLE FOR
GROCERY. AND SO I JUST WANT TO
KIND OF DEBUNK THAT A LITTLE
BIT. I ALSO WANT TO SAY THAT,
YOU KNOW, WOULD THIS ORDINANCE
OFFER SHOPPERS FEWER DEALS OR
FEWER SCAM DEALS WHERE THE PRICE
HAS BEEN INFLATED, AND THEN
YOU'RE GIVEN A SORT OF FAKE
DISCOUNT? I DON'T FEEL LIKE
THAT'S WHAT SHOPPERS DESERVE. I
THINK WE DESERVE TRANSPARENCY,
ACCOUNTABILITY, FAIRNESS AND
NONDISCRIMINATORY PRICING. WE
DON'T WANT TO HAVE PERSONALIZED
PRICING. AND THEN THE LAST NOTE
IS, I WANT TO SAY THAT REMINDER
PAST PURCHASE HISTORY IS ALLOWED
IN THIS ORDINANCE. AND SO IF YOU
BUY TOILET PAPER A BUNCH OF
TIMES THAT COUPON TO GET A
DISCOUNT OFF THAT TOILET PAPER
IS ALLOWED. LASTLY, I WANT TO
SPEAK TO THE IMPORTANCE OF THE
ELECTRONIC SURVEILLANCE TECH
DEFINITION IN THIS ORDINANCE. IT
IS PART OF WHAT MAKES IT ONE OF
THE STRONGEST ORDINANCES THAT
WE'VE SEEN BROUGHT FORWARD. IT
IS SO IMPORTANT BECAUSE WE ARE
ON THE PRECIPICE OF EMERGING
TECH. THERE IS TECH THAT IS ABLE
TO MEASURE. THINGS ABOUT OUR
BODIES, ABOUT OUR HEART RATE,
ABOUT OUR EYE MOVEMENTS. IT'S
REALLY IMPORTANT THAT THAT DATA
IS NOT USED TO SET PRICES. THANK
YOU SO MUCH FOR YOUR WORK.
-- [APPLAUSE]
-- ALL RIGHT. AND OUR LAST
IN-PERSON SPEAKER IS DUSTIN. AND
THEN WE'LL BE MOVING ONLINE.
-- GOOD MORNING, COUNCILMEMBERS.
I'M DUSTIN LAMBRO HERE TODAY
WITH UFCW W 3000. I SENT EACH OF
YOU AN EMAIL THIS MORNING,
LAYING OUT OUR POSITION IN A
LITTLE BIT MORE DETAIL, BUT WANT
TO EMPHASIZE THREE IMPORTANT
SAFEGUARDS. AS YOU CONSIDER
POTENTIAL AMENDMENT CONCEPTS.
FIRST, PRESERVING THE BONA FIDE
MARKET PRICE STANDARD WITHOUT AN
OBJECTIVE BASELINE, A RETAILER
COULD AND WOULD INFLATE THE
SUPPOSED REGULAR PRICE, GIVE
DIFFERENT CUSTOMERS DIFFERENT
PERSONALIZED QUOTE DISCOUNTS,
AND CLAIM EVERYONE RECEIVED A
BARGAIN. SECOND, PRESERVE THE
PRIVATE RIGHT OF ACTION. CENTRAL
STAFF ACKNOWLEDGES THAT THESE
INVESTIGATIONS MAY REQUIRE
ANALYZING LARGE VOLUMES OF DATA,
AND THAT THE CITY ATTORNEY MAY
NOT HAVE SUFFICIENT CAPACITY
YET. NO ADDITIONAL FISCAL
RESOURCES HAVE BEEN IDENTIFIED.
CITY ENFORCEMENT ALONE IS
THEREFORE NOT ENOUGH. AND
FINALLY, DO NOT CREATE A CURE
PERIOD THAT LETS A COMPANY
REFUND THE ONE CUSTOMER WHO
CATCHES A VIOLATION WHILE
IGNORING EVERYBODY ELSE WHO
DIDN'T CATCH THAT VIOLATION AND
WAS OTHERWISE AFFECTED BY THE
ALGORITHM. AS AMENDMENT LANGUAGE
IS A AS CONSIDERED HERE AND
BETWEEN THE NEXT BETWEEN NOW AND
THE NEXT MEETING, URGE YOU TO
APPLY ONE CENTRAL, ONE CENTRAL
TEST. WOULD THIS CHANGE ALLOW
TWO CUSTOMERS BUYING THE SAME
PRODUCT FROM THE SAME RETAILER
UNDER THE SAME CONDITIONS, TO
PAY DIFFERENT FINAL PRICES
BECAUSE OF THEIR PERSONAL
INFORMATION OR PREDICTED
BEHAVIOR? PLEASE DISTINGUISH
AMENDMENTS THAT CLEARLY THAT
CLARIFY THAT ORDINANCE FROM
THOSE THAT MAKE ITS PROTECTIONS
IMPOSSIBLE TO ENFORCE. THANK YOU
SO MUCH.
-- [APPLAUSE]
-- THANK YOU. WE WILL NOW MOVE
TO OUR REMOTE SPEAKERS.
-- THE FIRST REMOTE SPEAKER IS
AMY HARRIS. PLEASE PRESS STAR
SIX WHEN YOU HAVE TO BE UNMUTED
-- MERCEDES RINCK AND COMMITTEE.
MY NAME IS AMY HARRIS,
TESTIFYING ON BEHALF OF THE
WASHINGTON TECHNOLOGY INDUSTRY
ALLIANCE, REPRESENTING NEARLY
800 TECH COMPANIES IN SEATTLE
AND ACROSS WASHINGTON STATE. THE
LAST COMMITTEE. WE HAVE A NUMBER
OF CONCERNS ABOUT THE PROPOSED
PRICING ORDINANCE, AND ITS AND
ITS IMPACT ON CONSUMERS AND
BUSINESSES IN SEATTLE. IN SHORT,
THIS PROPOSAL WOULD EXACERBATE
SEATTLE'S AFFORDABILITY CRISIS
AND HARM THE CITY'S RETAILERS,
ESPECIALLY GROCERS. AS DRAFTED,
THE ORDINANCE WOULD REDUCE
CUSTOMER SAVINGS, NOT PROTECT
THEM. CUSTOMERS RELY ON FUEL
DISCOUNTS, DIGITAL COUPONS,
PERSONALIZED PROMOTIONS AND
REWARDS TO SAVE MONEY. THE CARVE
OUTS IN THE ORDINANCE ARE SO
NARROW THEY EFFECTIVELY PROHIBIT
OR DISCOURAGE THESE MUCH LOVED
CONSUMER PROGRAMS. IT ALSO ADDS
SIGNIFICANT PENALTIES FOR
BUSINESSES AND WOULD POTENTIALLY
REQUIRE DISCLOSURE OF
COMPETITIVELY SENSITIVE
INFORMATION, WHICH MAY LEAD
GROCERS AND OTHER RETAILERS TO
FORGO THESE PROGRAMS ENTIRELY.
AS A RESULT, SHOPPERS WOULD FACE
A SHORTAGE OF CRITICAL MONEY
SAVING OPTIONS. MERCHANTS WOULD
BE DEPRIVED OF VITAL CHANCES TO
FOSTER CUSTOMER LOYALTY AND
ENCOURAGE REPEAT BUSINESS. IT IS
EXPENSIVE TO LIVE IN SEATTLE. IT
IS ALREADY THE MOST EXPENSIVE
CITY IN THE COUNTRY FOR DELIVERY
RIGHT NOW. SEATTLE CONSUMERS
NEED MORE TOOLS TO MAKE ENDS
MEET. RETAILERS AND GROCERS NEED
PROGRAMS THAT ENCOURAGE
CUSTOMERS AND ENCOURAGE THEM TO
SHOP IN THEIR STORES.
UNFORTUNATELY, THIS ORDINANCE
REMOVES THOSE OPTIONS WHEN THEY
ARE NEEDED MOST BY SHOPPERS AND
RETAILERS ALIKE. THANK YOU SO
MUCH FOR YOUR TIME TODAY.
-- NEXT, WE HAVE LARS ERICKSON.
PLEASE PRESS STAR SIX TO BE
UNMUTED
-- GOOD MORNING. CHAIR RINCK AND
COUNCILMEMBERS. MY NAME IS LARS
ERICKSON. I'M REPRESENTING THE
MORE THAN 2600 MEMBERS OF THE
SEATTLE METRO CHAMBER REGARDING
THE SURVEILLANCE PRICING
ORDINANCE. WE SHARE THE GOAL OF
PROTECTING CONSUMERS. IF A
RETAILER IS USING PERSONAL
INFORMATION TO CHARGE SOMEONE
MORE, THAT PRACTICE SHOULD BE
ADDRESSED. WHAT WE DO KNOW IS
THAT THIS LEGISLATION IS
CURRENTLY DRAFTED CREATES
SIGNIFICANT COMPLIANCE COSTS AND
LEGAL RISK FOR GROCERS AND
RETAILERS THAT OFFER DISCOUNTS,
LOYALTY PROGRAMS AND FUEL
REWARDS THAT MANY SEATTLE
FAMILIES DEPEND ON DURING AN
AFFORDABILITY CRISIS. THE LIKELY
OUTCOME IS FEWER DISCOUNTS,
HIGHER GROCERY COSTS, AND
REDUCED INCENTIVES FOR RETAILERS
TO INVEST IN COMMUNITIES THAT
ALREADY STRUGGLE WITH ACCESS TO
GROCERY STORES AND PHARMACIES.
PRICE DIFFERENCES ALONE ARE NOT
EVIDENCE OF SURVEILLANCE
PRICING. PRICES VARY FOR MANY
LEGITIMATE REASONS, INCLUDING
PROMOTIONS, INVENTORY, DELIVERY
COSTS AND LOCATION. WE SHOULD
NOT ADOPT THE MOST RESTRICTIVE
ORDINANCE IN THE COUNTRY TO
SOLVE A PROBLEM THAT HAS NOT
BEEN DEMONSTRATED TO EXIST IN
SEATTLE, WE URGE THE COUNCIL TO
NARROW THE LEGISLATION TO FOCUS
ON ACTUAL PRICE INCREASES,
REMOVE THE PRIVATE RIGHT OF
ACTION AND CONTINUE WORKING WITH
GROCERS AND RETAILERS TO DEVELOP
A BALANCED APPROACH THAT
PROTECTS CONSUMERS WITHOUT
INCREASING COSTS. THANK YOU FOR
YOUR TIME AND CONSIDERATION.
-- THE NEXT SPEAKER IS TRAVIS
HALL. PRESS STAR SIX TO BE
UNMUTED.
WILL COME BACK TO TRAVIS. THE
NEXT SPEAKER IS JOHN PINCUS.
PLEASE PRESS STAR SIX TO BE
UNMUTED
-- I THINK IT'S FROM THE NEXUS
OF PRIVACY HERE TO SUPPORT THE
FAIR PRICING AND TRANSPARENCY
ORDINANCE, AND ALSO TO URGE YOU
TO RESIST INDUSTRY LOBBYISTS
PRESSURE TO WEAKEN IT. PLEASE
DON'T ADD ANY APOLOGIES. PLEASE
DON'T ADD ANY AMENDMENTS WITH
LOOPHOLES ALLOWING THEM TO FEED
OUR PERSONAL INFORMATION TO
BLACK BOX ALGORITHMS. TO, QUOTE,
OPTIMIZE PRICING, UNQUOTE, BY
CHARGING SOME PEOPLE MORE THAN
OTHERS FOR THE SAME ITEM. AND
JUST AS IMPORTANTLY, PLEASE DO
NOT WEAKEN ENFORCEMENT. A STRONG
PRIVATE RIGHT OF ACTION IS
VITAL. LARGE CORPORATIONS ARE
EXTREMELY EXPENSIVE TO TAKE ON.
FOR EXAMPLE, THE STATE ATTORNEY
GENERAL SUED META FOR BLATANT
VIOLATIONS OF CAMPAIGN FINANCE
LAW IN 2018, AND META STRETCHED
THE CASE OUT UNTIL EARLIER THIS
SUMMER. A FULL EIGHT YEARS WHEN
THE SUPREME COURT UPHELD THE
FINE. THE CITY ATTORNEY HAS
LIMITED RESOURCES AND SO WON'T
BE ABLE TO BRING VERY MANY OF
THESE CASES AT ALL WITHOUT A
STRONG, PRIVATE RIGHT OF ACTION.
LARGE RETAILERS AND DELIVERY
SERVICES HAVE A VERY STRONG
INCENTIVE TO BREAK THE LAW AND
HOPE THAT THEY CAN DODGE
ACCOUNTABILITY AND THE FAIR
PRICING TRANSPARENCY ORDINANCE
ONLY APPLIES TO LARGE RETAILERS
AND DELIVERY SERVICES, SO
THERE'S NO RISK OF THE PRIVATE
RIGHT OF ACTION UNINTENTIONALLY
HARMING SMALL FAMILY BUSINESSES.
THEY AREN'T EVEN COVERED
ENTITIES HERE. OF COURSE,
LOBBYISTS WILL CLAIM THAT A
PRIVATE RIGHT OF ACTION WILL
CAUSE THE SKY TO FALL. AND
THEY'LL SAY, OH, WE HAVE TO
HAVE A RIGHT TO CURE TO MAKE UP
FOR THESE WITHOUT BEING HELD
ACCOUNTABLE. THEY ALWAYS SAY
THAT IN 2022, THEY MADE SIMILAR
ARGUMENTS IN THE STATE
LEGISLATURE WITH THE PRIVATE
RIGHT OF ACTION IN MY HEALTH, MY
DATA. AND GUESS WHAT? THE SKY
HASN'T FALLEN. SO PLEASE IGNORE
LOBBYISTS IN AND KEEP THE
ENFORCEMENT PROVISIONS AND THE
REST OF THE ORDINANCE AS STRONG
AS POSSIBLE. THE SEATTLE
FAMILIES NEED FOOD SECURITY AND
THE PRICE OF GROCERIES IS OUT OF
CONTROL. THANK YOU.
-- [APPLAUSE]
-- TRAVIS HALL, PLEASE PRESS
STAR SIX TO BE UNMUTED.
-- HI, MY NAME IS TRAVIS HALL
AND I AM DIALING IN TO TALK
ABOUT THE FAIR PRICING
ORDINANCE. AND I'M CALLING TO IN
FAVOR OF IT. I REPRESENT THE
CENTER FOR DEMOCRACY AND
TECHNOLOGY, A NONPROFIT,
NONPARTISAN ORGANIZATION THAT
WORKS TO ADVANCE CIVIL RIGHTS
AND CIVIL LIBERTIES IN THE
DIGITAL AGE FOR EVERYONE. THE
DIGITAL COLLECTION, SORTING AND
PROCESSING AND SELLING OF VAST
AMOUNTS OF PERSONAL DATA HAS
ENABLED BUSINESSES AND DATA
BROKERS WHO SERVED THEM TO
CREATE INTIMATE PORTRAITS OF
INDIVIDUAL CONSUMERS AND NOT TO
THEIR BENEFIT, AND SURVEILLANCE
PRICING IS TRULY A RANK
ABANDONMENT OF TRANSPARENT LIST
PRICE APPROACH TO SERVE
CUSTOMERS WELL AND IS JUSTIFIED.
FREE ENTERPRISE IS THE BEST,
BENEFITING CONSUMERS IN THE
ECONOMY. THE ORDINANCE AT HAND
RIGHTLY ADDRESSES DISCOUNTS AND
EXEMPTS THEM. AND I JUST WANT TO
BE ABSOLUTELY CLEAR HERE THAT
WHEN THERE IS NO SET PRICE AND
THE PRICE IS NOT TRANSPARENT AND
STABLE, DISCOUNTS BECOME
MEANINGLESS. AND ULTIMATELY WHAT
THIS CREATES IS VAST INFORMATION
ASYMMETRY WHERE WHERE RETAILERS
AND STORES ARE ABLE TO KNOW
ABOUT AND SET PRICES ABOUT THEIR
CONSUMERS, FOR THEIR CONSUMERS
BASED ON, AGAIN, THIS VAST
AMOUNT OF PERSONAL INFORMATION.
WHEREAS THE CONSUMERS THEMSELVES
ARE NOT IN THAT POSITION. IT
ALSO CREATES AN INFORMATION
ASYMMETRY BETWEEN LARGE CHAINS
WHO WHO ARE ABLE TO HAVE THE
RESOURCES TO ACCESS THIS
INFORMATION AND USE THESE TOOLS
IN ORDER TO SET INDIVIDUAL
PRICES, WHICH CREATES A MASSIVE
DISADVANTAGE FOR LOCAL OR
SMALLER ENTITIES FOR WHOM THEY
ARE, YOU KNOW, USING MORE
TRADITIONAL DISCOUNTS OR MORE
REGULAR DISCOUNTS. THE ORDINANCE
DOES A GREAT JOB OF EXEMPTING
OUT ACTUAL DISCOUNTS WHILE
PROHIBITING THE PRACTICE OF
SETTING INDIVIDUALIZED PRICING.
AND WE THANK YOU FOR YOUR
LEADERSHIP ON THIS AND URGE YOU
TO MOVE THIS ORDINANCE FORWARD.
-- [APPLAUSE]
-- NEXT, WE HAVE DAVID HAYNES.
PLEASE PRESS STAR SIX.
-- HI. THANK YOU, DAVID HAINES.
IT COULD BE SAID THAT KROGER HAS
ALREADY VIOLATED THE ANTITRUST
MONOPOLIZED SHELF SPACE. WHETHER
IT'S THROUGH THEIR EFFORTS TO
DENY COMPETITORS MOVING IN WHEN
THEY MOVE OUT, YET STILL HAVE A
GROCERY STORE IN THE
NEIGHBORHOOD OR THEIR PROFILE IN
US THROUGH THEIR APPS AND
COMBINING QFC WITH FRED MEYER
AND THEN ANCHORING SOME OF THEIR
STORES IN THE SAME NEIGHBORHOOD
TO MAKE SURE THAT THE PRICES ARE
NEVER REASONABLY DROPPED. WHILE
WALL STREET MIDDLEMEN ARE
REPORTING RECORD PROFITS AT OUR
EXPENSE. AND I THINK IT'S
OBVIOUS THAT THE STATE OF
WASHINGTON WAS TARGETED HEAVILY
BY THE EVIL GREED OF KROGER AND
SHOOK THIS STATE DOWN. AND SOME
OF OUR LEADERS. I'M NOT
SUGGESTING COUNCIL, BUT LIKE
MAYBE ON THE STATE LEVEL HAVE
LOOKED THE OTHER WAY ON SOME OF
IT. THEY'VE TOUCHED, YOU KNOW,
ON THIS SUBJECT, BUT THEY
HAVEN'T TRULY ADDRESSED IT AND
DEALT WITH THE SOPHISTICATED,
MONOPOLIZED SHELF SPACE THAT
VIOLATES THAT ANTITRUST, THAT
GOUGES THE LIVING HELL OUT OF
THE LOCAL NEIGHBORHOODS AND
SHAKES US DOWN AND LEAVES US
DYING OF STARVATION WITH A BELLY
FULL OF JUNK FOOD. ANYWAY, THAT
SAID, I'M MORE UPSET ABOUT THE
FACT THAT WE HAVE A HOMELESS
CRISIS AND THE HUMAN SERVICES
DEPARTMENT IS SPENDING MILLIONS
OF DOLLARS RUNNING INTERFERENCE
FOR CRIMINAL REPEAT OFFENDERS
THAT ARE CONNECTED TO THE
UNDERWORLD. DRUG PUSHERS AND
JUNKY THIEVING LOWLIFES WHO
STEAL ALL THE INNOCENT HOMELESS
PEOPLE'S SURVIVAL GEAR. AND YET
WE DON'T HAVE ANY
ACCOUNTABILITY FROM ANY OF THE
NONPROFIT SERVICE PROVIDERS THAT
KING COUNTY REGIONAL HOMELESS
AUTHORITY WAS SUPPOSED TO KEEP
HONEST AND FORTHRIGHT AND
DILIGENT AND PROACTIVE IN
CONSTRUCTIVELY CRITICIZING IN A
POSITIVE MANNER TO HELP THEM
SOLVE THE CRISIS INSTEAD OF A
SUBHUMAN MISTREATMENT THAT'S
TAKING PLACE BECAUSE THE
OVERSIGHT ONLY CARES ABOUT
MAKING SURE THAT PEOPLE GET PAID
THE PADDED COST OF SUBHUMAN,
MISTREATING INNOCENT PEOPLE.
THAT NEEDS TO BE ADDRESSED A
LITTLE BIT MORE. LIKE HONESTLY
AND
-- NEXT, WE HAVE ALBERTO
ALVAREZ, PRESS STAR SIX. THERE
YOU GO.
-- GOOD MORNING. SURVEILLANCE.
PRICING AND EXPLOITING CONSUMER
DATA. THE FACT IS, BUSINESS
GROUPS HAVE NO INTEREST IN
SAVING CONSUMERS MONEY. JUST A
FEW MONTHS AGO, THESE COMPANIES
RECEIVED MILLIONS UPON MILLIONS
OF TAXPAYER MONEY AS REFUNDS FOR
THE HIGH TARIFFS OF THE PREVIOUS
YEAR. NONE OF THAT MONEY WAS
REFUNDED TO THE CONSUMER, OR
EVEN USED TO GIVE WORKING STAFF
A BONUS, LET ALONE BEING USED TO
ALLEVIATE THE PRICE INCREASES
DUE TO THE WAR IN IRAN. THE
LEGISLATION TODAY FOR GROCERY
AFFORDABILITY IS A GREAT MOVE
FOR OUR CITY. PLEASE MAKE NO
AMENDMENTS OR CARVE OUTS OR ONES
THAT FAVOR CORPORATIONS TO
EXPLOIT PERSONAL INFORMATION.
THANK YOU ALL AND HAVE A GOOD
DAY.
-- [APPLAUSE]
-- THANK YOU. THERE ARE NO
ADDITIONAL REGISTERED SPEAKERS.
AND WITH THAT WE WILL NOW
PROCEED TO OUR ITEMS OF
BUSINESS. AND I WANT TO THANK
EVERYONE WHO CAME OUT TODAY TO
PROVIDE PUBLIC COMMENT. TRULY
APPRECIATE YOUR ENGAGEMENT IN
LOCAL GOVERNMENT. WITH THAT,
MOVING TO OUR FIRST ITEM OF
BUSINESS, WILL THE CLERK PLEASE
READ ITEM ONE INTO THE RECORD
-- ONE.
-- ITEM ONE COUNCIL BILL ONE,
TWO, 1270. AN ORDINANCE RELATING
TO THE BALLARD BUSINESS
IMPROVEMENT AREA AMENDING
SECTION SIX OF ORDINANCE 126911
TO CLARIFY PROVISIONS ON
ASSESSMENT ESCALATIONS FOR
PUBLIC HEARING DISCUSSION AND
POSSIBLE VOTE.
-- THANK YOU SO MUCH. AND AS OUR
PRESENTERS ARE GETTING SETTLED
IN AT THE TABLE, I WILL NOTE,
COLLEAGUES, BEFORE WE MOVE INTO
THE PRESENTATION, I WANT TO NOTE
AT THE TOP THAT WHILE A PUBLIC
HEARING FOR THIS KIND OF
TECHNICAL AMENDMENT TO THE
ORDINANCE IS NOT TECHNICALLY
LEGALLY REQUIRED, WE FEEL IT'S
GOOD GOVERNANCE TO HEAR FROM
FOLKS DIRECTLY IMPACTED BY EVEN
SMALL CHANGES TO BIAS. SO THERE
WILL BE A PUBLIC HEARING OPENED
UP FOLLOWING THE PRESENTATION,
AND THAT PUBLIC HEARING WILL BE
TO SOLICIT FEEDBACK TO THE
PROPOSED TECHNICAL EDIT TO THE
BALLARD BIGHAS ORDINANCE,
CLARIFYING THE LANGUAGE TO
ENSURE CONSISTENT, PREDICTABLE
IMPLEMENTATION ON INFLATIONARY
ADJUSTMENTS AND FOLLOWING THE
PUBLIC HEARING, WE WILL VOTE ON
THE ORDINANCE TODAY.
-- GOOD MORNING. GOOD MORNING
OKAY, SO I SHOULD.
-- JUST GIVE US ONE SECOND HERE
-- OKAY. YEAH. SO.
HERE.
YEAH. I WAS THINKING YOU. NO IT
IS.
-- YEAH. NO, REALLY? HURRY.
SOMEWHERE.
-- AND THERE WAS A DAUGHTER,
RIGHT. FOR THIS ONE. THANK YOU
FOR TAKING.
-- NO, THAT'S OKAY.
-- CAN YOU RESEND IT?
-- MY COLLEAGUES WILL BE AT
EASE. WILL WE SORT OUT THE
TECHNICAL CHALLENGE?
-- OKAY.
-- ALL RIGHT, COLLEAGUES, WE ARE
BACK. APOLOGIES. WE HAVE A SMALL
TECHNICAL CHALLENGE. JUST WITH
TWO. THE ONE PRESENTATION
UPLOADED TWICE. AND SO WE ARE
FIXING THAT RIGHT NOW. IN THE
SPIRIT OF KEEPING THE AGENDA
ROLLING, WE ARE GOING TO MOVE
TOWARDS OPENING UP THE PUBLIC
HEARING ON THIS ITEM. AND SO
WITH THAT, AS PRESIDING OFFICER,
I AM NOW OPENING THE PUBLIC
HEARING ON COUNCIL BILL 121270
PUBLIC COMMENT RELATING TO
COUNCIL BILL 121270 IS ONLY
BEING ACCEPTED AT THIS TIME.
CLARK COUNTY SPEAKERS ARE SIGNED
UP FOR PUBLIC COMMENT.
-- CURRENTLY WE HAVE ZERO IN
PERSON AND THERE ARE TWO REMOTE
SPEAKERS.
-- OKAY, EACH SPEAKER WILL BE
PROVIDED TWO MINUTES. CLERK I
WILL NOW HAND THIS OVER TO YOU
TO PRESENT THE INSTRUCTIONS
-- SPEAKERS WILL BE CALLED ON IN
THE ORDER OF REGISTRATION. THE
PUBLIC HEARING REGISTRATION WILL
REMAIN OPEN UNTIL THE CONCLUSION
OF THIS PUBLIC HEARING. THE SAME
PUBLIC COMMENT RULES APPLY TO
THIS PUBLIC HEARING. A TEN
SECOND TIME WILL BE YOUR NOTICE
THAT THAT. TIME TO WRAP UP YOUR
COMMENTS. SPEAKERS MICS WILL BE
MUTED AT THE END OF THE ALLOTTED
TIME. SPEAKERS ARE ASKED TO
BEGIN THEIR COMMENTS BY STATING
THEIR NAME. THE FIRST SPEAKER ON
THE LIST IS MARK CRAIG. AND LET
ME MARK YES, YOU CAN CLICK STAR
SIX TO BEGIN SPEAKING.
-- GOOD MORNING, COMMITTEE
MEMBERS. MY NAME IS MARK CRAIG
AND I'M A PROPERTY OWNER AND
RATEPAYER WITHIN THE BALLARD
IMPROVEMENT AREA. I'M HERE
TODAY TO VOICE SUPPORT FOR THE
LEGISLATION BEING DISCUSSED
REGARDING THE BALLARD BIA. AS A
COMMERCIAL AND RESIDENTIAL
PROPERTY OWNER IN BALLARD, I
VIEW THE BALLARD ALLIANCE AS AN
INVALUABLE PARTNER IN
MAINTAINING AND STRENGTHENING
THE NEIGHBORHOOD. THEIR CLEAN
AND SAFE INITIATIVES HELP CREATE
AN ENVIRONMENT WHERE BUSINESSES,
RESIDENTS AND VISITORS FEEL
WELCOME WHILE THEIR ADVOCACY
PROVIDES AN EFFECTIVE VOICE FOR
THE COMMUNITY AND WORKING WITH
THE CITY OF SEATTLE, THE
ALLIANCE PLAYS A CRITICAL ROLE
IN PRESERVING BALLARD CONTINUED
SUCCESS AS ONE OF SEATTLE'S MOST
VIBRANT COMMERCIAL DISTRICTS.
THE PENDING ORDINANCE UNDER
CONSIDERATION IS A MINOR
AMENDMENT IN HOW THE ANNUAL
INFLATIONARY ESCALATOR IS
APPLIED. THE FULL INTENT OF THE
ORDINANCE IS TO ADD CLARITY AND
ENSURE THE ANNUAL INFLATIONARY
INCREASE WILL REPRESENT THE YEAR
OVER YEAR CHANGE IN THE CONSUMER
PRICE INDEX, WITH A FLOOR OF 2%
AND A CEILING OF 6%. THIS WAS
THE INTENT OF THE ORIGINAL
ORDINANCE THAT WAS ADOPTED IN
LATE 2023, AND AS A RATEPAYER
AND A MEMBER OF THE BALLARD
ALLIANCE RATEPAYER ADVISORY
BOARD, I'D LIKE TO ENCOURAGE
ADOPTION OF THIS AMENDMENT.
THANK YOU.
-- ALL RIGHT. THERE ARE NO
ADDITIONAL SPEAKERS FOR THIS
PUBLIC HEARING. AND SO WITH
THAT, THE PUBLIC HEARING IS NOW
CLOSED. AND SO NOW TURNING TO
THE TABLE, DO ARE WE READY WITH
THE PRESENTATION UP? WE'RE
ALMOST THERE. EVERYONE.
-- OKAY
-- ALL RIGHT. I'LL WILL BE AT
EASE AGAIN JUST FOR TWO MORE
MINUTES. I THINK WE'RE ALMOST
THERE. AGAIN. APOLOGIES ALL.
FIRST TIME THIS HAS HAPPENED TO
US. SO THANK YOU FOR YOUR
PATIENCE.
-- RACHEL, HERE. JUST SO YOU SEE
IT, I'M FORWARDING YOU THIS.
-- ROBERT OR KETTLE.
-- ALL RIGHT, I THINK WE'RE
GOOD TO GO.
-- PERFECT.
-- WONDERFUL. THANK YOU
EVERYONE.
-- THANK YOU ALL.
-- FOR TECHNOLOGY ON FRIDAY.
THANK YOU FOR HAVING US HERE. MY
NAME IS CASEY ROGERS. I'M HERE
WITH TOM MALONE AND BRIAN SCOTT.
I'M REPRESENTING BALLARD. I'M
GOING TO GIVE AN OVERVIEW OF OUR
BIA PROGRAM AND OF WHAT THE
LEGISLATION THAT WE'RE GOING
OVER TODAY IS, AND THEN I'LL
PASS IT OVER TO THESE TWO TO GO
INTO MORE DETAIL. SO SO
SEATTLE'S BUSINESS IMPROVEMENT
AREA PROGRAM, WE HAVE 11 BIA'S
ACROSS THE CITY, REPRESENTING
MORE THAN $45 MILLION IN TOTAL
ASSESSMENTS. AND THAT PROVIDES
ENHANCED BUSINESS SERVICES AND
OTHER SERVICES IN EACH DISTRICT.
ALL THAT FUNDING DOES STAY
LOCALLY, AND THE FUNDING IS
PREDICTABLE AND SUSTAINABLE,
WHICH IS ONE THING WE LOVE ABOUT
OUR PROGRAM. THE REVENUE IS
COLLECTED BY THE CITY, BY THE
TREASURY SERVICES, BUT 100% OF
IT GOES BACK TO THE DISTRICT. SO
IT REALLY ALL STAYS LOCALLY. AND
THEN LASTLY, THE BIA PROGRAM IS
SUPPORTED BY BOTH OED, OFFICE OF
ECONOMIC DEVELOPMENT AND THE
TREASURY SERVICES. AND JUST TO
FRAME A LITTLE BIT MORE ABOUT
BIA AND THE LEGISLATION THAT
WE'RE DISCUSSING TODAY. SO EACH
BY ITSELF HAS ITS OWN UNIQUE
ORDINANCE THAT OUTLINES THE THE
ASSESSMENT METHODOLOGY. SO THE
WAY THAT THEY ASSESS THE
RATEPAYERS WITHIN THE DISTRICT
IS UNIQUE TO EACH DISTRICT. AND
I JUST WANT TO NOTE THAT
INFLATIONARY FACTORS ARE REALLY
COMMONLY USED AND RECOMMENDED
WITH EACH ASSESSMENT FORMULA.
AND THAT ENSURES THAT THE
BUDGETS KEEP IN PACE WITH
ECONOMIC CONDITIONS AND KEEP UP
WITH RISING COSTS. SO THE
AMENDMENT THAT'S BEING PROPOSED
TODAY, A FEW THINGS. IT
CLARIFIES AMBIGUOUS ORDINANCE
LANGUAGE ABOUT HOW THE ANNUAL
INFLATION ADJUSTMENTS SHOULD BE
APPLIED. IT CONFIRMS THE
INTENDED METHOD. SO THERE'S A
FEW INTERPRETATIONS WE REALIZED.
BUT THE INTENDED METHOD IS THAT
FOR YEARS THREE THROUGH 12 OF
THE ORDINANCE, YOU MUST BASE THE
PREVIOUS YEAR'S ASSESSMENT PLUS
THE SEATTLE CPI. YOU CHANGE FROM
OCTOBER TO OCTOBER WITH A 2%
MINIMUM AND A 6% MAXIMUM. AND IT
DOES PROVIDE A CPU BACKUP. SO
YOU, AS THE CONSUMER PRICE
INDEX, IN CASE THAT THERE IS NOT
A CPI ANNOUNCED IN OCTOBER,
WHICH INCIDENTALLY DID HAPPEN
LAST LAST FALL WITH THE FEDERAL
GOVERNMENT SHUT DOWN. I DO WANT
TO NOTE THAT IT DOESN'T ACTUALLY
CHANGE THE ASSESSMENT
METHODOLOGY. THIS IS REALLY
ABOUT CLARIFYING LANGUAGE. IT
ENSURES CONSISTENT CALCULATIONS
TO MAKE SURE THAT WE CALCULATE
THE CORRECT ASSESSMENT FOR THE
FOLLOWING YEARS, AND IMPROVES
TRANSPARENCY AND PREDICTABILITY
FOR RATEPAYERS IN BALLARD. IN
CONCLUSION, OED HAS DONE A
REVIEW OF THE PROPOSED AMENDMENT
AND WE RECOMMEND APPROVING IT.
IT'S REASONABLE AND ALIGNS WITH
OUR CITY POLICIES, AND WE THINK
IT'S NECESSARY FOR ACCURATE
IMPLEMENTATION OF THE ASSESSMENT
MOVING FORWARD. SO WITH THAT,
I'LL PASS IT OVER TO TOM AND
BRIAN.
-- GOOD MORNING, CHAIR RINCK AND
OTHER COUNCILMEMBERS OF THIS
COMMITTEE. MY NAME IS TOM MALONE
AND I AM CHAIR OF THE BALLARD
ALLIANCE RATEPAYER BOARD. THE
BALLARD ALLIANCE WAS INITIALLY
FORMED IN 2017, AND WE HAD ONE
FULL TERM. AND THEN IN 2023, WE
ADOPTED A NEW ORDINANCE IN
REGARD TO THIS PROGRAM. BUT
WE'VE BEEN BASICALLY AROUND
SINCE 2017 AS A B, I A, BUT WE
AS OUR SLIDES INDICATE, THIS
REALLY HAS GROWN OUT OF THE
BALLARD CHAMBER OF COMMERCE.
THAT'S BEEN AROUND HELPING TO
WORK WITH THE COMMUNITY SINCE
1927. SO EXCUSE ME, OUR OUR
MISSION IS FOR COLLECTIVE ACTION
TO BUILD AND SUSTAIN AN
INCLUSIVE AND RESILIENT BALLARD
OUR BOARD CONSISTS EQUALLY OF
MEMBERS OF OTHER LANDOWNERS AND
BUSINESSES AND RESIDENTS OUR
MISSION FOCUSES ON CLEAN
STREETS, ECONOMIC DEVELOPMENT,
MARKETING, ADVOCACY, AND PUBLIC
REALM, AND BEAUTIFICATION SO WE
ARE OBVIOUSLY IN FAVOR OF
GETTING THIS AMENDMENT TO THIS
PROGRAM BECAUSE HAVING BEEN
INVOLVED WITH BOTH THE 2017 AND
THE 2023 ORDINANCE, WHEN WE HAD
TO GET 60% OF OUR PEOPLE TO
AGREE WITH THE ORDINANCE, WE
WERE TELLING THEM THAT WE WERE
GOING TO PUT THIS FLOOR OF 2%
AND CEILING OF 6% IN ON AN
ANNUAL BASIS. SO WE THINK THAT
WE STRONGLY ENDORSE THIS
TECHNICAL AMENDMENT TO PROVIDE
OUR PEOPLE WITH WHAT WE PROMISED
THEM. THANK YOU.
-- GOOD MORNING, CHAIR. RANKING
MEMBERS OF THE COUNCIL. I'M
BRIAN SCOTT, I'M THE FOUNDING
PARTNER OF UNCOMMON BRIDGES.
I'VE BEEN INVOLVED IN THE PLACE
MANAGEMENT INDUSTRY AND BUSINESS
IMPROVEMENT DISTRICTS FOR MORE
THAN 40 YEARS. AND I'VE HAD A
ROLE IN ALL OF SEATTLE'S
BUSINESS IMPROVEMENT AREAS AND
BEEN A CONSULTANT FOR THE CITY
PRETTY MUCH JUST ABOUT 20 YEARS.
THIS AMENDMENT IS SIMPLY ABOUT
FIXING SOME LANGUAGE THAT ISN'T
PRODUCING THE INTENDED IMPACT.
YOU PASS AN ORDINANCE IN 2023,
REAUTHORIZING THE DISTRICT, AND
THAT METHODOLOGY CREATED A
CHALLENGE. AND UNFORTUNATELY,
THE LANGUAGE IN ONE SECTION IS
CAUSING AN UNEXPECTED CHANGE.
THE INTENT WAS TO INCREASE THE
ASSESSMENT BY AN INFLATION
FACTOR EVERY YEAR, WITH LIMITS
ON HOW THAT IT WOULDN'T BE TOO
MUCH OR TOO LITTLE. BUT THE
LANGUAGE CREATES TWO POSSIBLE
MISINTERPRETATIONS OF WHAT IS
HAPPENING. IT COULD CAP THE
ASSESSMENTS AT A TOTAL INCREASE
OF 6% OVER THE ORIGINAL YEAR,
AND INFLATION WILL BE MUCH MORE
THAN 6% OVER THE 12 YEAR LIFE OF
THE DISTRICT. ANOTHER OPTION,
ANOTHER WAY TO READ IT WOULD BE
THAT IT WOULD INFLATE IT ONCE
YOU REACH 6%, IT WOULD CONTINUE
TO REACH INFLATE IT 6% EVERY
YEAR, WHICH WOULD BE MUCH
GREATER THAN THAN THE
ASSESSMENT. WE HAVE TREMENDOUS
BURDEN ON RATEPAYERS. SO NEITHER
OF THESE WAS THE INTENT. ONE
WOULD DEPRESS SERVICES, THE
OTHER WOULD UNFAIRLY ASSESS
RATEPAYERS. SO WE'RE PROPOSING A
MODEST CHANGE THE AGAIN, THE
INTENT IS BASICALLY THAT WE
WOULD INCREASE THE ASSESSMENT
EACH YEAR BY THE CONSUMER PRICE
INDEX, BUT BY AT LEAST 2% AND BY
NO MORE THAN 6%. SO BY APPROVING
APPROVING THAT CONSISTENT 2%
FLOOR AND 6% CEILING ON THE
ASSESSMENTS, THAT ALLOWS
PREDICTABLE FUNDING THAT
RATEPAYERS CAN PLAN ON THEIR
ASSESSMENTS AND HELPS THE COST
OF SERVICES. YOU KNOW, THE
ASSESSMENT KEEP PACE WITH RISING
COSTS OF PROVIDING THE SERVICES.
SO THIS THE FIX IS VERY SMALL.
IT'S CHANGE IN ONE PARAGRAPH IN
SECTION TWO B TO SAY THAT IN
EACH YEAR, THE PERCENTAGE CHANGE
IN THE ASSESSMENT WILL BE EQUAL
TO THE PERCENTAGE CHANGE IN THE
CONSUMER PRICE INDEX FOR SEATTLE
FROM OCTOBER THE PREVIOUS YEAR
TO THE THAT OF THE CURRENT YEAR.
IT ALSO MAKES A PROVISION JUST
IN CASE. AS WAS THE CASE THIS
LAST YEAR, IF THE CONSUMER PRICE
INDEX DOES NOT BECOME AVAILABLE,
WE WOULD JUST USE THAT SAME
FACTOR FOR THE PREVIOUS YEAR. SO
THIS IS A PRETTY SIMPLE
TECHNICAL AMENDMENT JUST TO GET
THINGS LINED UP WITH INTENT. WE
ENCOURAGE YOU TO PASS IT TODAY.
THANK YOU.
-- THANK YOU ALL FOR THE
PRESENTATION TODAY AND FOR
HANGING WITH US THROUGH THE
TECHNICAL ISSUES. THANK YOU TO.
I KNOW THE NUMBER OF STAFF
BEHIND THE SCENES WHO GOT THE
PRESENTATION UP. I APPRECIATE
YOUR QUICK WORK, COLLEAGUES. DO
YOU HAVE ANY QUESTIONS ABOUT THE
PRESENTATION OR WHAT'S BEFORE US
TODAY? VICE CHAIR FOSTER.
-- THANK YOU SO MUCH, CHAIR
RINCK NO QUESTIONS FOR ME TODAY.
I JUST WANT TO EXPRESS MY
APPRECIATION TO YOU ALL FOR YOUR
WORK AND FOR COMING DOWN TO
SHARE WITH US TODAY WHY THESE
CHANGES ARE NEEDED AND THE
APPROACH THAT YOU TOOK TO MAKING
SURE THAT MEMBERS WERE ENGAGED
AND PARTICIPATED. AND SO JUST
EXPRESSING MY GRATITUDE. THANK
YOU.
-- THANK YOU.
-- THANK YOU, VICE CHAIR FOSTER.
I AM NOT SEEING ANY ADDITIONAL
HANDS. SO I WILL NOTE THAT THIS
ITEM IS SCHEDULED FOR A VOTE THE
SAME DAY AS A PUBLIC HEARING,
AND THE RULES MUST BE SUSPENDED
TO ALLOW US TO MOVE FORWARD WITH
A VOTE TODAY. SO IF THERE IS NO
OBJECTION, THE RULES WILL BE
SUSPENDED TO ALLOW FOR A
COMMITTEE VOTE ON COUNCIL BILL
1212, SEVEN ZERO. THE SAME DAY A
PUBLIC HEARING WAS HELD. ALL
RIGHT. SEEING NO OBJECTION, I
MOVE THAT THE COMMITTEE
RECOMMEND PASSAGE OF COUNCIL
BILL 121270. IS THERE A SECOND?
-- SECOND.
-- IT IS MOVED AND SECONDED TO
RECOMMEND PASSAGE OF THE BILL.
ARE THERE ANY FINAL COMMENTS?
RIGHT. SEEING AND HEARING? NONE.
WILL THE COMMITTEE CLERK PLEASE
CALL THE ROLL ON THE COMMITTEE
RECOMMENDATION TO PASS THE BILL?
-- VICE CHAIR FOSTER.
-- YES.
-- COUNCIL PRESIDENT
HOLLINGSWORTH. COUNCILMEMBER
SAKA.
-- AYE.
-- CHAIR RINCK.
-- YES, CHAIR.
-- THERE ARE THREE IN FAVOR.
ZERO POSED WITH ONE. NOT
PRESENT.
-- ALL RIGHT. WITH THAT, THE
MOTION CARRIES AND THE COMMITTEE
RECOMMENDATION THAT THE BILL
PASS WILL BE SENT TO THE
SEPTEMBER 15th FULL CITY COUNCIL
MEETING. THANK YOU ALL AGAIN FOR
THE PRESENTATION FOR THE WORK
YOU DO.
-- THANK YOU VERY MUCH.
-- WONDERFUL. WITH THAT, WE WILL
NOW MOVE ON TO OUR NEXT ITEM OF
BUSINESS. WILL THE CLERK PLEASE
READ ITEM TWO INTO THE RECORD?
-- ITEM TWO COUNCIL BILL 121272.
AN ORDINANCE RELATING TO THE
CAPITOL HILL BUSINESS
IMPROVEMENT AREA. MODIFYING THE
BOUNDARIES. AMENDING ORDINANCE
113029 AS PREVIOUSLY AMENDED BY
ORDINANCES 115998120303 AND
124514, MODIFYING THE ASSESSED
STRUCTURE ASSESSMENT STRUCTURE
FOR THE CAPITOL HILL BUSINESS
IMPROVEMENT AREA AND RATIFYING
AND CONFIRMING CERTAIN PRIOR
ACTS FOR PUBLIC HEARING
DISCUSSION AND POSSIBLE VOTE.
-- THANK YOU SO MUCH. SO I AM
NOTING FOR THE RECORD THAT THIS
ITEM DOES REQUIRE A PUBLIC
HEARING, AND WE WILL HOLD THAT
TODAY FOLLOWING THE PRESENTATION
AND BEFORE A VOTE ON THE
ORDINANCE COUNCIL BILL ONE, TWO,
1272 CONTAINS FIVE PROPOSED
ADJUSTMENTS TO THE CAPITOL HILL
BROADWAY BIAS ORDINANCE INTENDED
TO STABILIZE THE BIAS BUDGET AND
BETTER ALIGN THE DISTRICT
BOUNDARY WITH CURRENT COMMERCIAL
ACTIVITY AND WITH THAT, I WILL
NOW TURN IT TO OUR PRESENTERS AT
THE TABLE. OR PARDON ME, BEFORE
WE MOVE TO PARDON ME, MISS READ.
AT THIS POINT, I WILL NOW TURN
IT TO OUR PRESENTERS AT THE
TABLE.
-- THANK YOU. JUST ONE SECOND.
ALL RIGHT. THANK YOU EVERYONE.
LET ME DO FULL SCREEN. ARE YOU
SHARE FIRST.
ALL RIGHT. AND WE'RE LIVE. ALL
RIGHT. HI AGAIN. CASEY ROGERS
BIA POLICY ADVISOR FOR OFFICE OF
ECONOMIC DEVELOPMENT HERE TODAY.
AGAIN TO TALK ABOUT THE CAPITOL
HILL OR ALSO KNOWN AS THE
BROADWAY BIA ORDINANCE AMENDMENT
SOME BACKGROUND ON THE CAPITOL
HILL OR BROADWAY BUSINESS
IMPROVEMENT AREA WAS ORIGINALLY
ESTABLISHED IN 1986. SO IT'S A
LONG STANDING BIA. THE CHBA IS
ACTUALLY BUSINESS BASED, SO
IT'S BASED. THE ASSESSMENTS ARE
BASED ON SELF-REPORTED REVENUE
FROM EACH BUSINESS. THAT'S A
MEMBER OF THE BIA. IT'S
CURRENTLY CURRENTLY HAS A CAP OF
3500, A MAXIMUM CAP OF $3,500.
AS THE MAXIMUM THAT ANY
RATEPAYER WOULD PAY AND THAT
ACTUALLY REALLY LIMITS THE
GROWTH OF THE BIA. AS I
MENTIONED IN THE PREVIOUS
PRESENTATION, THERE'S NO
INFLATIONARY FACTOR THERE GIVEN.
AND SO RISING COSTS FOR
CLEANING, SAFETY AND DISTRICT
MANAGEMENT KIND OF OUTPACE THE
ASSESSMENTS. AND SO THAT'S WHY
WE'RE HERE TODAY TO TALK
-- ABOUT ADJUSTING THIS. THE
APPROACH. PROPOSED AMENDMENT
OFFERS SHORT TERM BUDGET
STABILIZATION BY ADJUSTING THE
RATES FOR INFLATION AND MAKING
ONE SMALL BOUNDARY ADJUSTMENT.
IT INCREASES SOME FIXED
ASSESSMENTS THAT I'LL GO INTO
THAT IMPROVES EQUITY ACROSS
RATEPAYERS AND JUST TO MENTION
LONGER TERM, THE BROADWAY BAY
PLANS TO REALLY REEVALUATE
SHIFTING FROM THIS BUSINESS
BASED MODEL TO A MORE
PREDICTABLE, SUSTAINABLE,
PROPERTY BASED ASSESSMENT MODEL,
WHICH IS MORE COMMON AMONGST
OUR. THE ELEMENTS OF THE
PROPOSAL THAT WE'RE DISCUSSING
TODAY ARE AS FOLLOWS RAISING THE
MAXIMUM ASSESSMENT FROM $3,500
TO 5000. IT WILL INCREASE THE
SEATTLE CENTRAL COLLEGE'S FIXED
ASSESSMENTS BY REMOVING A
SPECIAL LOWER RATE SO THAT IT
PAYS THE STANDARD MAXIMUM RATE
OF 5000. IT WILL INCREASE A
FINANCIAL INSTITUTION.
INSTITUTIONS FIXED ASSESSMENT.
SO THEY ALSO PAY THE STANDARD
MAXIMUM RATES. AND THEN IT WILL
ADD STARTING IN 2032, A STEADY
$200 ANNUAL INCREASE TO ACCOUNT
FOR INFLATION. THE MAP HERE, I
JUST WANT TO NOTE THE BOUNDARY
ADJUSTMENT. IF YOU CAN SEE IN
THE VERY SOUTHEAST CORNER,
THERE'S JUST ONE PARCEL THAT'S
BEING REMOVED FROM THE BOUNDARY
TO BETTER MATCH THE ACTUAL
COMMERCIAL DISTRICT OF BROADWAY.
AND IN CONCLUSION, AGAIN, OED
HAS REVIEWED THE AMENDMENT BEING
DISCUSSED AND FOUND THAT IT IS
REASONABLE AND ALIGNS WITH CITY
POLICY. AND WE DO RECOMMEND THIS
FOR APPROVAL HERE TODAY. SO
THANK YOU FOR THIS. AND I'M
GOING TO PASS IT OVER TO IAN
O'BRIEN. HERE YOU CAN GET GOING
AS AYE.
-- I'M GOING TO PULL THAT UP.
ALL RIGHT.
-- GOOD MORNING, COUNCILMEMBERS.
MY NAME IS RYAN. I'M THE
DIRECTOR OF THE BROADWAY
BUSINESS IMPROVEMENT AREA IN
LEGISLATION REFERRED TO AS THE
CAPITOL HILL BUSINESS
IMPROVEMENT ASSOCIATION. SO WHO
WE ARE. WE WERE FOUNDED IN 1986.
WE'RE ONE OF THE EARLIEST BIS
IN THE CITY. WE'RE A 501. C SIX
NONPROFIT AND OUR BOARD IS MADE
UP OF RATEPAYERS. WE HAVE ABOUT
150 BUSINESSES. WE'RE NESTED IN
SEATTLE'S HISTORIC LGBTQ
NEIGHBORHOOD OF CAPITOL HILL AND
RIGHT IN THE MIDDLE OF OUR
DISTRICT IS THE LIGHT RAIL
STATION. AND SO WE ARE THE
GATEWAY TO CAPITOL HILL. OUR
MISSION IS TO CONNECT
BUSINESSES, RESIDENTS, AND
VISITORS TO CREATE A SAFE, CLEAN
AND THRIVING COMMUNITY. WELCOME
TO ALL. AND AS KACEY
HIGHLIGHTED, THIS IS JUST A
PRETTIER VERSION OF OF WHAT HE
HE GAVE US. BASICALLY, OUR
BUSINESS DISTRICT GOES FROM PIKE
IN THE SOUTH TO ROY IN THE NORTH
WITH SOME STRAIGHT SIDE STREETS
INCLUDED. AND SOME BASICS ON THE
AMENDMENT THAT WE'RE PROPOSING.
AS CASEY STATED, WE WANT TO
CHANGE OUR TAX RATE FROM 3500 TO
$5000. AND AFTER A STABILIZATION
PERIOD OF FIVE YEARS, WE'LL ADD
$200 A YEAR TO ACCOUNT FOR
INFLATION. THE REASON WE DO
THIS, RATHER THAN HAVING A
SIMPLE CPI ADJUSTMENT, IS
BECAUSE THESE ARE SELF
ASSESSMENTS. AND SO HAVING ODD
NUMBERS BECOMES CONFUSING FOR
FOLKS THAT ARE FILLING OUT
FORMS. SO WE WANTED SOMETHING
THAT WILL ALIGN ROUGHLY WITH
INFLATION JUST TO KEEP UP WITH
OUR EXPENSES, BUT NOT CONFUSE
OUR RATEPAYERS. BY THE WAY, THIS
MAX WAS SET IN 2001 THROUGH AN
AMENDMENT OF 33,500 AND THOSE
NOT PAYING THE MAX ARE SMALLER
BUSINESSES PAY ON A FORMULA, AND
AS THEIR REVENUES INCREASED,
THEY PAY MORE. BUT THE MAX
PAYERS HAVE NOT PAID MORE SINCE
2001. SO REALLY, THIS IS A FIX
TO THAT LEGISLATION SO THAT WE
CAN MAKE THE ASSESSMENTS MORE
EQUITABLE FOR ALL BUSINESSES IN
THE BROADWAY BIA, WE'RE ALSO
REMOVING THE SEATTLE CENTRAL
COLLEGE EXEMPTION IN THIS
LEGISLATION. AND SO SEATTLE
CENTRAL COLLEGE WILL BECOME A
MAX PAYER. AND THEN WE'RE
SHRINKING THE BIA MAP BY ONE
BUSINESS BECAUSE THE BUSINESS IS
NATURALLY PART OF PIKE PINE. AND
RATHER THAN BEING PART OF THE
BROADWAY BUSINESS DISTRICT WHY
NOW? WELL, THE COST FOR GARBAGE
PICKUP AND GRAFFITI ABATEMENT
HAVE INCREASED WITH INFLATION.
AND YET OUR ASSESSMENTS,
ESPECIALLY FROM OUR TAX PAYERS,
HAVE REMAINED RELATIVELY FLAT.
SO THIS CREATES A MORE EQUITABLE
ASSESSMENT FOR ALL AND ALLOWS
THE BIA TO CONTINUE AT CURRENT
SERVICE LEVELS, PLUS ADD BACK
PROMOTION, BEAUTIFICATION
BUDGETS, EVENT SPONSORSHIP AND
MORE. THE RATEPAYER OUTREACH
THAT WE DID, WE NOTIFIED ALL OF
OUR MAX RATEPAYERS, EITHER BY
EMAIL OR BY DISTRIBUTING A FLIER
IN PERSON, OR GOING IN AND
TALKING TO LIKE A BANK MANAGER,
A BRANCH MANAGER FROM ALL THOSE
WHO RESPONDED, WE GOT POSITIVE
RESPONSES. THERE WERE NO NO'S TO
THE LEGISLATION THAT WE'RE
PROPOSING FROM ANY OF THE FOLKS
THAT WE ENGAGE WITH, THE ONE
RATEPAYER WITH SPECIAL EXEMPTION
SMC OF $1,500 WAS IN FAVOR OF
THE MAX PAYER RATE. NOW. AND
JUST OUR ESTEEMED BOARD, WHICH
WE'VE ACTUALLY SINCE ADDED TO
IN THE LAST WEEK. SO THIS IS
ALREADY OUT OF DATE. WE'RE
GROWING. AND YEAH, THIS
LEGISLATION JUST REALLY INTENDS
TO HELP KEEP BROADWAY A
WELCOMING, SAFE, CLEAN PLACE
FOR, FOR ALL OF OUR VISITORS AND
OUR BUSINESSES. THANK YOU FOR
YOUR CONSIDERATION TODAY
-- THANK YOU SO MUCH FOR THE
WORK YOU DO AND FOR BEING BEFORE
COMMITTEE TODAY. COLLEAGUES,
I'D LIKE TO OPEN IT UP TO
QUESTIONS FIRST. AND A REMINDER.
FOLLOWING QUESTIONS, WE WILL
HAVE THE PUBLIC HEARING. SEEING
A HAND FIRST FROM VICE CHAIR
FOSTER AND THEN FOLLOWED BY THAT
COUNCIL PRESIDENT HOLLINGSWORTH.
-- THANK YOU SO MUCH, CHAIR
RINCK, AND THANK YOU ALL FOR
BEING HERE TODAY. I APPRECIATE
YOU TAKING THE TIME TO COME
DOWN. I JUST WANTED TO ASK A
QUESTION ABOUT HOW YOU DECIDED
ON THE INCREASE FROM 3500 TO
5000. IT SOUNDS LIKE THAT
HASN'T BEEN INCREASED SINCE I
THINK I HEARD YOU SAY 2001. AND
SO IT DOES SEEM FAIRLY MODEST.
AND I'M JUST CURIOUS IF I CAN
HEAR A LITTLE BIT MORE ABOUT HOW
YOU LANDED ON THAT MAXIMUM
NUMBER.
-- YEAH. THAT THAT FIGURE WAS
DECIDED UPON BY DISCUSSION
THROUGH THE BOARD. AND LOTS OF
NUMBERS WERE BANDIED ABOUT, I
THINK, IN THE ECONOMIC CLIMATE
THAT WE FIND OURSELVES IN, WE
DIDN'T WANT TO PLACE UNDUE
BURDEN ON ANY OF OUR RATEPAYERS.
AND SO BASICALLY, THE INTENT WAS
TO STABILIZE OUR BUDGET. AND
WITH THIS PARTICULAR FORMULA
THAT DOES THAT
-- THANK YOU. AND JUST ONE
FOLLOW UP QUESTION. AND THAT
MAKES A TON OF SENSE. THERE'S WE
ARE ALL MANAGING INCREASED COSTS
AND INFLATION, AS YOU ALREADY
DISCUSSED, MY FOLLOW UP IS JUST
IF YOU HAVE A SENSE OF WITH THIS
INCREASE, THE, THE TERM THAT IT
MIGHT BE ABLE TO SUSTAIN YOU FOR
JUST KNOWING YOU HAVEN'T BEEN 25
YEARS. SO, YOU KNOW, I'M
CURIOUS HOW YOU SORT OF THOUGHT
ABOUT THE FUTURE OR IF THIS MAY
BE SOMETHING WE NEED TO TAKE UP
AGAIN, A COUPLE YEARS DOWN THE
ROAD, IF THAT WAS PART OF THE
DISCUSSION.
-- YEAH. WELL, WE PUT AN
ADDITIONAL INCREASE IN STARTING
FIVE YEARS AFTER THIS
LEGISLATION WOULD GO INTO EFFECT
STARTING IN 2032. SO THERE THERE
WOULD BE ADJUSTMENTS FOR
INFLATION, INFLATION LATER ON.
HOWEVER, IN THE MEANTIME,
BROADWAY IS GOING TO BE
EXPLORING MOVING TO A PROPERTY
BASED MODEL OR ESTABLISHING A
BRAND NEW BIA AND SUNSETTING
THIS PARTICULAR MODEL AS
PROPERTY BASED ASSESSMENTS ARE
MORE SUSTAINABLE THAN B BASED
ASSESSMENTS.
-- THANK YOU SO MUCH. THANK YOU
CHAIR.
-- THANK YOU, VICE CHAIR. FOSTER
COUNCIL PRESIDENT HOLLINGSWORTH.
-- THANK YOU, CHAIR, AND THANK
YOU, CASEY, AND AGAIN FOR BEING
HERE. FULLY SUPPORT THIS. AND
JUST I DON'T HAVE ANY QUESTIONS
BECAUSE VERY FAMILIAR WITH THE
BROADWAY BIA AND ALL THE WORK
EGAN DOES. VERY GRATEFUL FOR ALL
THE WORK THAT YOU HAVE DONE,
JUST TO KIND OF KEEP THE
NEIGHBORHOOD. I KNOW IT'S A
IT'S ALWAYS A CHALLENGE WITH,
YOU KNOW, JUST SOME OF THE STUFF
THAT WE'VE SEEN, BUT JUST
REALLY APPRECIATE ALL THE WORK
THAT YOU'VE DONE. AND I THINK
OFTENTIMES NORTH BROADWAY, THE
AREA THAT YOU COVERED, KIND OF
GETS LEFT OUT OF THE MIX BECAUSE
WE GET SO FOCUSED ON PIKE, PINE
CORRIDOR THAT WE FORGET THAT
THERE'S A LARGE PART OF CAPITOL
HILL THAT EXTENDS TO NORTH
BROADWAY. AND THEN THE AREA THAT
THE BIA COVERS. AND SO WANTING
TO MAKE SURE THAT THOSE
RESOURCES ARE BEING PROVIDED
FOR, FOR YOU ALL AND SUPPORT
FROM THE CITY. SO JUST SAYING
THANK YOU. HAPPY TO VOTE ON THIS
TODAY AND THE CONTINUED WORK
THAT YOU ALL ARE DOING WITH THE
BROADWAY BIA. SO THANK YOU
AGAIN, AND THANK YOU, CASEY, FOR
ALL YOUR WORK AS WELL.
-- THANK YOU, COUNCIL PRESIDENT.
-- THANK YOU FOR THOSE REMARKS.
COUNCIL PRESIDENT, I HAVE JUST
TWO QUICK CLARIFYING QUESTIONS
FOR THE RECORD. AND THANK YOU
AGAIN FOR, AGAIN, THE WORK YOU
DO AND FOR WALKING US THROUGH
ALL OF THIS TODAY. WHAT I'M
HEARING IS THAT THESE CHANGES
ARE JUST TO MAKE ASSESSMENTS FOR
THE MAX RATEPAYERS TO MAKE THIS
MORE EQUITABLE, CORRECT?
-- THAT'S CORRECT. IT CURRENTLY
AFFECTS ABOUT 24 OF OUR
RATEPAYERS. WE HAVE ABOUT 150.
SO ABOUT ONE SIXTH OF OUR
RATEPAYERS ARE AFFECTED.
-- OKAY.
-- YOU ALREADY ANSWERED MY
FOLLOW UP QUESTION.
-- [LAUGHTER]
-- SO 24 RATEPAYERS.
-- [LAUGHTER]
-- WONDERFUL.
-- THANK YOU SO MUCH. ALL RIGHT,
COLLEAGUES, IT'S FOR THE I'M
NOT SEEING ANY ADDITIONAL HANDS.
SO I AM GOING TO KEEP US MOVING.
AND AGAIN, BEFORE WE VOTE ON
THIS ITEM, WE THE COMMITTEE MUST
HOLD A PUBLIC HEARING. AND SO,
AS PRESIDING OFFICER, I AM NOW
OPENING THE PUBLIC HEARING ON
COUNCIL BILL 121272 PUBLIC
COMMENT RELATING TO COUNCIL BILL
121272 IS ONLY BEING ACCEPTED AT
THIS TIME. CLERK HOW MANY
SPEAKERS ARE SIGNED UP FOR THE
PUBLIC HEARING?
-- WE HAVE ONE IN-PERSON SPEAKER
AND ONE REMOTE SPEAKER.
-- EACH SPEAKER WILL BE GIVEN
TWO MINUTES AND CLERK. I WILL
HAND IT OVER TO YOU TO PRESENT
THE INSTRUCTIONS.
-- SPEAKERS WILL BE CALLED ON IN
THE ORDER OF REGISTRATION. THE
PUBLIC HEARING REGISTRATION WILL
REMAIN OPEN UNTIL THE CONCLUSION
OF THIS PUBLIC HEARING. THE SAME
PUBLIC COMMENT RULES APPLY TO
THIS PUBLIC HEARING. A TEN
SECOND TIME WILL BE YOUR NOTICE
WHEN IT IS TIME TO WRAP UP.
COMMENTS. SPEAKERS MICS WILL BE
MUTED AT THE END OF THE ALLOTTED
TIME. SPEAKERS ARE ASKED TO
BEGIN THEIR COMMENTS BY STATING
THEIR NAME.
-- THANK YOU SO MUCH. OUR FIRST
IN-PERSON SPEAKER AND ONLY
IN-PERSON SPEAKER IS GRANT
BOWKER.
-- GOOD MORNING.
-- THANK YOU. GOOD MORNING,
CHAIRPERSON AND COUNCIL. I'M
GRANT BOWKER WITH SEATTLE
CENTRAL COLLEGE. AND I JUST WANT
TO CONFIRM WHAT EAGAN HAS STATED
THERE IS WE HAVE UNDERPAID, IN
MY OPINION, AND FOR 25 YEARS.
AND WE ARE PROBABLY THE LARGEST
FOOTPRINT IN THE BROADWAY
NEIGHBORHOOD ASSOCIATION. SO WE
FIND IT TO BE ABSOLUTELY
EQUITABLE FOR US TO HAVE OUR
LIMIT INCREASED, QUITE FRANKLY,
DOUBLE OF WHAT WE PAY IS WHAT WE
WOULD REALLY LIKE TO SEE. BUT
THIS IS A GREAT START FOR US AND
THE VALUE THAT WE RECEIVE IS
MASSIVE. SO WE ARE IN FULL
SUPPORT OF THIS. THANK YOU.
-- GREAT.
-- THANK YOU. GRANT. WE'LL NOW
MOVE TO OUR REMOTE AND REMOTE
SPEAKER. BUT HEARING FROM THE
CLERK THAT THEY ARE NOT PRESENT.
SO GOING ONCE, GOING TWICE. WE
HAVE NOW HEARD FROM OUR LAST
REGISTERED SPEAKER AT THIS
PUBLIC HEARING. AND WITH THAT,
THE PUBLIC HEARING ON COUNCIL
BILL ONE TWO, 1272 IS NOW
CLOSED. SO THIS ITEM IS
SCHEDULED FOR A VOTE ON THE SAME
DAY AS A PUBLIC HEARING, AND THE
RULES MUST BE SUSPENDED TO ALLOW
US TO MOVE FORWARD WITH A VOTE
TODAY. SO IF THERE IS NO
OBJECTION, THE RULES WILL BE
SUSPENDED TO ALLOW THE COMMITTEE
TO VOTE ON COUNCIL BILL ONE,
TWO, ONE, TWO, SEVEN TWO. THE
SAME DAY A PUBLIC HEARING WAS
HELD. ALL RIGHT. HEARING NO
OBJECTION, I MOVE THAT THE
COMMITTEE RECOMMEND PASSAGE OF
COUNCIL BILL 121272. IS THERE A
SECOND?
-- SECOND.
-- IT IS MOVED AND SECONDED TO
RECOMMEND PASSAGE OF THE BILL.
ARE THERE ANY FINAL COMMENTS?
HEARING AND SEEING? NONE. WILL
THE CLERK PLEASE CALL THE ROLL
ON THE COMMITTEE RECOMMENDATION
TO PASS THE BILL?
-- VICE CHAIR FOSTER.
-- YES.
-- COUNCIL PRESIDENT
HOLLINGSWORTH. I COUNCILMEMBER
SAKA. I CHAIR RINCK.
-- YES.
-- CHAIR. THERE ARE FOUR IN
FAVOR, ZERO OPPOSED.
-- THANK YOU. THE MOTION CARRIES
AND THE COMMITTEE RECOMMENDATION
THAT THE BILL PASS WILL BE SENT
TO THE SEPTEMBER 15th FULL CITY
COUNCIL MEETING. THANK YOU SO
MUCH.
-- THANK YOU SO MUCH.
-- THANK YOU. HAVE A GREAT DAY.
-- ALL RIGHT, COLLEAGUES, WE
WILL NOW MOVE TO OUR THIRD ITEM
OF BUSINESS. WILL THE CLERK
PLEASE READ ITEM THREE INTO THE
RECORD
-- ITEM THREE COUNCIL BILL ONE,
TWO, 1266. AN ORDINANCE RELATING
TO DOMESTIC WORKERS LABOR
STANDARDS IN SEATTLE. AMENDING
SECTIONS 1423, 01014, 23020 AND
1423095 TO THE SEATTLE MUNICIPAL
CODE AND ADDING NEW SECTIONS.
14230251423, 127 AND 1423128 TO
THE SEATTLE MUNICIPAL CODE TO
ESTABLISH WRITTEN AGREEMENT
REQUIREMENTS. ESTABLISH
PROTECTIONS FOR ENTITLED, PAID
AND UNPAID LEAVE, INCLUDING
RETALIATION PROTECTION FOR
TAKING PERMISSIBLE TIME OFF,
REQUIRING HIDDEN REQUIRE HIRING
ENTITIES TO CREATE AND RETAIN
RECORDS AND ADVANCE NOTICE OF
TERMINATION REQUIREMENTS. UPDATE
REMEDY PROVISIONS AND CONFORM TO
CERTAIN CHANGES TO STATE LAW AND
WITH THE CITY LABOR STANDARDS
FOR DISCUSSION AND POSSIBLE
VOTE.
-- THANK YOU TO THE CLERK FOR
READING THE LONG TITLE.
COLLEAGUES, WE WERE BRIEFED ON
THIS ITEM DURING OUR LAST
COMMITTEE MEETING ON AUGUST 7th
BY THE OFFICE OF LABOR
STANDARDS. AND TODAY WE HAVE
KARINA BULL FROM CENTRAL STAFF
AT THE TABLE TO GIVE US A QUICK
REMINDER ON WHAT CHANGES, WHAT
THOSE CHANGES TO THE AMENDED
DOMESTIC WORKERS ORDINANCE ARE
BEFORE WE MOVE TO A VOTE ON THE
LEGISLATION. I'LL TURN IT TO
YOU, KARINA.
-- GOOD MORNING, COMMITTEE
MEMBERS. KARINA BULL FROM
COUNCIL CENTRAL STAFF. I HAVE A
VERY BRIEF ONE MINUTE SUMMARY OF
THE ORDINANCE. IT SOUNDS A LOT
LIKE THE ORDINANCE TITLE, BUT I
AM AVAILABLE TO ASK OR TO ANSWER
ANY QUESTIONS. IF COUNCILMEMBERS
WOULD LIKE TO GO DEEPER. COUNCIL
BILL ONE, TWO, ONE, TWO, SIX SIX
WOULD AMEND THE DOMESTIC WORKERS
ORDINANCE, SEATTLE MUNICIPAL
CODE 14.23 TO INCORPORATE
DOMESTIC WORKER PROTECTIONS
PASSED BY THE STATE LEGISLATURE
EARLIER THIS YEAR. REFLECT
RECOMMENDATIONS FROM THE
DOMESTIC WORKER STANDARDS BOARD
AND ADOPT TYPICAL PROVISIONS AND
OTHER SEATTLE LABOR STANDARDS.
SPECIFICALLY, THESE AMENDMENTS
WOULD REQUIRE WRITTEN
AGREEMENTS, ADVANCE NOTICE OF
TERMINATION AND RECORDS
RETENTION, EXPLICITLY PROHIBIT
HIRING ENTITIES FROM RETALIATING
AGAINST THE DOMESTIC WORKER FOR
USING THEIR ENTITLED LEAVE
UPDATE ENFORCEMENT REMEDIES TO
INCLUDE INFLATION, INFLATION
ADJUSTMENTS THAT ARE ALREADY IN
EFFECT BUT WOULD BE REFLECTED IN
THE ORDINANCE AND ALSO ADD
FINES. LAST, THE AMENDMENTS
WOULD ADD PROVISIONS TO PROHIBIT
WAIVER OF RIGHTS AND TO
ENCOURAGE MORE GENEROUS
POLICIES. THESE AMENDMENTS WOULD
GO INTO EFFECT ON JULY 1st,
2027, THE SAME DATE THAT THE NEW
STATE DOMESTIC WORKER
PROTECTIONS WOULD GO INTO EFFECT
AND THE AMENDMENTS WOULD BE
IMPLEMENTED BY THE OFFICE OF
LABOR STANDARDS. THERE ARE NO
AMENDMENTS FOR THE COMMITTEE'S
CONSIDERATION
-- THANK YOU SO MUCH FOR THE
OVERVIEW, KARINA. COLLEAGUES, I
KNOW WE'VE HAD A NUMBER OF
DISCUSSIONS RELATED TO THE
DOMESTIC WORKERS ORDINANCE, AS
WELL AS THE WORK OF THE DOMESTIC
WORKER STANDARDS BOARD. I'D LIKE
TO OPEN IT UP TO YOU ALL IF YOU
HAVE ANY QUESTIONS FOR KARINA
TODAY I AM NOT SEEING ANY HANDS
AND COLLEAGUES. AS A REMINDER,
WE DO INTEND TO VOTE TODAY. I
KNOW THERE WERE NO AMENDMENTS
THAT CAME FORWARD ON THIS. AND
HEARING AND SEEING NONE, I'M
GOING TO MOVE US TOWARDS A VOTE,
WHICH I'M VERY EXCITED ABOUT.
SO WITH THAT, I MOVE TO
RECOMMEND PARDON ME, I MOVE THAT
THE COMMITTEE RECOMMEND PASSAGE
OF COUNCIL BILL ONE, TWO, ONE,
TWO, SIX, SIX. IS THERE A
SECOND?
-- SECOND.
-- THANK YOU. IT IS MOVED AND
SECONDED TO RECOMMEND PASSAGE OF
THE BILL. ARE THERE ANY FINAL
COMMENTS ALL RIGHT. WILL THE
COMMITTEE CLERK PLEASE CALL THE
ROLL ON THE COMMITTEE
RECOMMENDATION TO PASS THE BILL?
-- VICE CHAIR FOSTER.
-- YES.
-- COUNCIL PRESIDENT
HOLLINGSWORTH. I COUNCILMEMBER
SAKA. AYE. CHAIR RINCK.
-- YES.
-- THERE ARE FOUR IN FAVOR, ZERO
OPPOSED.
-- THE MOTION CARRIES AND THE
COMMITTEE RECOMMENDATION THAT
THE BILL PASS WILL BE SENT TO
THE SEPTEMBER 15th FULL CITY
COUNCIL MEETING. HUGE THANK YOU
TO THE OFFICE OF LABOR STANDARDS
FOR YOUR HARD WORK ON THIS.
THANK YOU AGAIN, KARINA, FOR
YOUR WORK ON THIS AS WELL. AND
TO THE DOMESTIC WORKER STANDARDS
BOARD FOR THE WORK THAT YOU'VE
PUT IN OVER THE PAST SEVERAL
MONTHS TO BRING US TO TODAY.
THANK YOU. AND WITH THAT, WE
WILL NOW MOVE TO OUR FOURTH ITEM
OF BUSINESS. WILL THE CLERK
PLEASE READ THE ITEM INTO THE
RECORD.?
-- ITEM FOUR COUNCIL BILL ONE,
21267. AN ORDINANCE RELATING TO
PROHIBITING ALGORITHMIC BASED
PRICE DISCRIMINATION REQUIRING
COVERED RETAILERS DISCLOSURES TO
CONSUMERS REQUIRING THAT COVERED
RETAILERS RETAIN CERTAIN
RECORDS, AND ADDING A NEW
CHAPTER 7.35 TO THE SEATTLE
MUNICIPAL CODE FOR BRIEFING AND
DISCUSSION.
-- THANK YOU SO MUCH. NOW,
BEFORE OUR CENTRAL STAFF
PRESENTS ON POLICY
CONSIDERATIONS, I WANT TO TAKE A
MOMENT TO BRIEFLY SPEAK TO WHAT
OUR FAIR PRICING AND
TRANSPARENCY ORDINANCE IS AND
ISN'T, AND WHERE WE ARE IN THE
PROCESS. THIS BILL IS FOCUSED
SOLELY ON PREVENTING BIG
COMPANIES FROM USING OUR
PERSONAL INFORMATION TO SET
UNIQUE PRICES FOR EACH OF US
INDIVIDUALLY. THAT'S IT. THIS
BILL DOES NOT PREVENT SENIOR
DISCOUNTS OR GAS REWARDS. THIS
BILL DOES NOT PREVENT MEMBERSHIP
REWARDS OR CARD CLUB, SAVINGS
CLUB, CARD SAVINGS COMPANIES CAN
STILL OFFER A DISCOUNT TO SIGN
UP OR COME BACK. THIS BILL DOES
NOT IMPACT OUR INDEPENDENT
GROCERS OR ETHNIC MARKETS AT
ALL. THIS BILL DOES NOT STOP
COMPANIES FROM GIVING
SEATTLEITES COUPONS. NOW, AFTER
MONTHS OF DEEP ENGAGEMENT WITH
PRIVACY AND CONSUMER PROTECTION
EXPERTS, COMMUNITY ADVOCATES,
LABOR AND INDUSTRY, MY TEAM AND
THE MAYOR'S OFFICE CRAFTED THIS
BILL TO PUT GUARDRAILS ON ONE
SPECIFIC PRACTICE LARGE GROCERY
AND DELIVERY COMPANIES SETTING,
ALTERING OR MANIPULATING THE
PRICE OF GOODS BASED ON
MONITORING, TRACKING, OR
AUTOMATED ANALYSIS OF OUR
BEHAVIOR, LOCATION,
DEMOGRAPHICS, BIOMETRIC DATA, OR
OTHER PERSONAL INFORMATION,
INCLUDING PERSONAL INFORMATION
ACQUIRED FROM A THIRD PARTY OR
PERSONAL INFORMATION THAT IS
GATHERED, PURCHASED, OR
COLLECTED BY THESE COMPANIES
USING ELECTRONIC SURVEILLANCE
TECHNOLOGY. AND IN OUR LAST
COMMITTEE MEETING, WE HEARD FROM
THE EXECUTIVE AND NATIONAL
EXPERTS ON AI AND CIVIL
LIBERTIES ON THE DETAILS OF THIS
BILL AND WHY WE NEED IT NOW.
TODAY, WE'LL HEAR FROM OUR
INDEPENDENT CENTRAL STAFF'S
OBJECTIVE ANALYSIS ON THE BILL
AND HEAR DIRECTLY FROM
COLLEAGUES ON THE COMMITTEE
ABOUT THEIR AMENDMENT CONCEPTS.
SO WITH THAT, I WILL NOW TURN IT
OVER TO CENTRAL STAFF TO PROCEED
WITH THEIR PRESENTATION. THANK
YOU SO MUCH.
-- GOOD MORNING, COUNCILMEMBERS.
MY NAME IS JASMINE MARWAHA ON
COUNCIL CENTRAL STAFF.
-- GOOD MORNING, TOMMASO JOHNSON
COUNCIL CENTRAL STAFF. WE ARE
HERE TO WALK YOU THROUGH A
PRESENTATION THAT PROVIDES A
SUMMARY OF OUR ANALYSIS MEMO ON
THIS LEGISLATION. THE MEMO WHICH
YOU ARE IN RECEIPT OF, IS ALSO
POSTED ON THE AGENDA FOR MEMBERS
OF THE PUBLIC. THIS BILL, FAIR
PRICING AND TRANSPARENCY COUNCIL
BILL ONE, TWO, 1267. AS A
BACKGROUND, AS YOU MENTIONED,
AND AS WAS DISCUSSED IN MORE
DETAIL DURING THE LAST COMMITTEE
MEETING, THIS BILL IS INTENDED
TO ADDRESS THE CONCEPT OF
SURVEILLANCE PRICING, ALSO KNOWN
AS INDIVIDUALIZED PRICING. THE
BILL, THE TERMINOLOGY USED IN
THE BILL IS DIFFERENT, BUT JUST
BY WAY OF BACKGROUND
SURVEILLANCE, PRICING IS BASED
ON A COMBINATION OF TECHNOLOGY
AND BUSINESS PRACTICES, WHERE
INFORMATION ABOUT INDIVIDUAL
CONSUMERS IS GATHERED,
AGGREGATED AND ANALYZED, AND
THEN UTILIZED TO VARY THE PRICE
PRESENTED TO THE CONSUMER WE'LL
WE'LL HEAR DISTINCTIONS BETWEEN
PRICE POSTED PRICE AND
DISCOUNTS. AND THERE'S SOME
DIFFERENCE OF TERMINOLOGY THERE
WHEN DESCRIBING THE PRICES THAT
PEOPLE PAY. BUT WHEN WE USE
PRICING IN THIS CONTEXT, WE'RE
REFERRING TO THE PRICE THAT
SOMEONE PAYS, WHICH MAY OR MAY
NOT REFLECT A DISCOUNT OR BE THE
POSTED PRICE. SO IN GENERAL, AS
I MENTIONED, THIS IS THE
PRACTICE KNOWN AS SURVEILLANCE
PRICING OR INDIVIDUALIZED
PRICING. THE TERM THAT THIS BILL
USES ALGORITHMIC BASED PRICE
DISCRIMINATION, CONSUMER
PROTECTION LAWS IN GENERAL IN
THIS COUNTRY AND IN WASHINGTON
STATE ARE WERE CREATED AT A TIME
BEFORE THE TECHNOLOGY WAS AS
PREVALENT AS IT IS NOW TO
REGULATE THIS KIND OF PRICE
VARIABILITY. THE FREQUENCY AND
LEVEL OF VARIABILITY TO THE
INDIVIDUAL CONSUMER. WE'VE SEEN.
I THINK IT'S IMPORTANT TO NOTE
THAT WE'VE SEEN SOME SEVERAL
OTHER CONSUMER PROTECTION LAWS
ATTEMPTING TO ADDRESS THE USE OF
ALGORITHMS AND PERSONAL
INFORMATION TO VARY THE PRICE
PAID FOR GOODS OR SERVICES. THE
ORDINANCE FROM LAST YEAR, KNOWN
AS THE ALGORITHMIC ALGORITHMIC
RENT FIXING ORDINANCE, IS
ANALOGOUS IN SOME WAYS. THAT
ORDINANCE SOUGHT TO LIMIT THE
USE OF ALGORITHMIC VARIABILITY
IN TERMS OF RESIDENTIAL RENTAL
MARKETS, AND AS I SAID, THAT WAS
PASSED BY THIS COUNCIL LAST
YEAR. THERE HAVE BEEN RELATED
LEGISLATIVE EFFORTS IN A NUMBER
OF JURISDICTIONS AROUND THE
COUNTRY. THERE ARE CURRENTLY
THREE STATE LAWS ENACTED ON THIS
TOPIC. CONNECTICUT. CONNECTICUT,
MARYLAND AND NEW JERSEY. NEW
YORK AND COLORADO HAVE ALSO
PASSED THOSE LEGISLATURES. STATE
LEGISLATURES HAVE PASSED BILLS
ADDRESSING THIS TOPIC. I SHOULD
SAY THAT THAT THERE IS A MORE
COMPREHENSIVE SUMMARY SNAPSHOT
OF THOSE EFFORTS IN A TABLE AT
THE END OF THIS MEMO. THERE'S
ALSO PROPOSED LEGISLATION THAT
HAS NOT BEEN PASSED AT A
MUNICIPAL LEVEL. THAT'S SIMILAR
IN SOME WAYS TO THIS EFFORT IN
PORTLAND, OREGON, THERE WAS AS
WELL STATE LEGISLATION IN
WASHINGTON STATE, IN OLYMPIA
THIS PAST YEAR, THIS PAST
SESSION, EARLIER IN THE YEAR, IT
DID NOT PASS THIS YEAR AND WOULD
NEED TO BE MAYBE REINTRODUCED IN
SOME FORM DURING THE NEW SESSION
IN 2027. AS FAR AS WHAT THIS
BILL DOES, IT WOULD CREATE A NEW
CHAPTER IN THE SEATTLE MUNICIPAL
CODE 7.35 THAT WOULD HAVE FOUR
SORT OF CORE REQUIREMENTS.
NUMBER ONE IS A PROHIBITION ON
THE USE OF ELECTRONIC SHELF
LABELS. THAT IS A TECHNOLOGY
THAT ALLOWS SHELF PRICES IN IN
PHYSICAL RETAIL ENVIRONMENTS TO
BE VARIED DYNAMICALLY THROUGH
DIGITAL LABEL, AS OPPOSED TO THE
MORE TRADITIONAL PRINTED SHELF
LABEL. IT WOULD ALSO CREATE A
PROHIBITION ON WHAT THE BILL
DEFINES AS ALGORITHMIC BASED
PRICE DISCRIMINATION. THIS
PROHIBITION WOULD BE SPECIFIC TO
THE SALE OF GROCERIES AND
CERTAIN OTHER ITEMS, AND IT
WOULD INCLUDE EXCEPTIONS, WHICH
I WILL BE DISCUSSING
MOMENTARILY. IT WOULD ALSO PUT
NEW DISCLOSURE REQUIREMENTS ON
CERTAIN INFORMATION RELATED TO
PRICING AND DISCOUNTS BY THOSE
COVERED RETAILERS, AND IT WOULD
ALSO ADDRESS RECORD KEEPING
RELATED TO COMPLIANCE. THIS
BILL, IN TERMS OF THE SCOPE,
THIS BILL USES SEVERAL DEFINED
TERMS. THE COVERED RETAILERS
WOULD INCLUDE THREE BROAD
CATEGORIES. FIRST AND FOREMOST
IS GROCERY BUSINESSES. THOSE ARE
BUSINESSES THAT ARE ENGAGED
PRIMARILY IN THE SELLING OF
GROCERIES FOR OFF SITE
CONSUMPTION. IT EXPLICITLY
EXCLUDES CONVENIENCE STORES AND
FARMERS MARKETS. AND AS WAS
MENTIONED EARLIER, IT ALSO
APPLIES ONLY TO TO GROCERS OF A
CERTAIN SIZE. SO THOSE
REQUIREMENTS ARE 10,000FT OR
MORE IN THE STORE, AND 20 OR
MORE LOCATIONS WORLDWIDE. THE
TERM THAT THE BILL USES IS
GLOBALLY, BUT ACROSS THE WORLD.
SECONDLY, MIXED USE GROCERY
BUSINESSES ARE DEFINED AS THOSE
BUSINESSES THAT DO NOT
EXCLUSIVELY SELL GROCERIES BUT
HAVE AT LEAST TEN ZERO ZERO ZERO
SQUARE FEET OF FLOOR SPACE IN
THEIR STORE DEDICATED TO THE
SALE OF GROCERIES AND REGULATED
GOODS. IN THOSE MIXED USE
BUSINESSES WOULD INCLUDE
GROCERIES AS WELL AS GROOMING
PRODUCTS, HYGIENE PRODUCTS AND
OVER-THE-COUNTER DRUGS SOLD
THERE. LASTLY, DELIVERY SERVICE
PROVIDERS ARE THOSE ENTITIES
THAT FACILITATE THE DELIVERY OR
ONLINE ORDERING FROM ONE OF THE
ABOVE CATEGORIES OF BUSINESSES
COVERING THE SAME CATEGORIES OF
GOODS FOR EACH BUSINESS TYPE AND
THE REQUIREMENT THERE IS THAT
THAT DELIVERY SERVICE PROVIDER
HAVE 100 OR MORE EMPLOYEES
WORLDWIDE. THE CORE OF THIS BILL
IS THIS TERM DEFINED TERM
ALGORITHMIC BASED PRICE
DISCRIMINATION, WHICH IS DEFINED
AS, QUOTE, THE SETTING, ALTERING
OR MANIPULATING OF THE PRICE OF
GOODS BASED ON MONITORING,
TRACKING, OR AUTOMATED ANALYSIS
OF A CONSUMER'S BEHAVIOR,
LOCATION, DEMOGRAPHIC
CHARACTERISTICS, BIOMETRIC DATA,
OR OTHER PERSONAL INFORMATION.
THIS IS A CATCH ALL DEFINITION
THAT INCLUDES THE TERM RANDOM
VARIATIONS IN PRICE BETWEEN
DIFFERENT CUSTOMERS. THERE ARE
EXCEPTIONS BUILT INTO THIS
DEFINITION, SO CATEGORIES OF
PRICE VARIATION THAT ARE NOT
CONSIDERED TO BE ALGORITHMIC
BASED, ALGORITHM BASED PRICE
DISCRIMINATION INCLUDE
VARIATIONS IN PRICE BASED ON
DELIVERY, COST OR LOCATION PER
PHYSICAL STORE PRICING
VARIATION, AS LONG AS THAT
VARIATION IS AVAILABLE TO ALL
CONSUMER CUSTOMERS AT THAT
STORE. THIRD PARTY OR
MANUFACTURERS COUPONS ARE
EXEMPTED, PROVIDED THAT THEY DO
NOT. THERE IS NOT A USE OR
SHARING OF THAT CUSTOMER
INFORMATION DISCOUNTS ARE ALSO
ALLOWED TO MEMBERS OF A GROUP, A
BROADLY DEFINED, COMMONLY
ACCEPTED GROUP. EXAMPLES. A
NON-EXCLUSIVE LIST OF EXAMPLES
IS PROVIDED. TEACHERS, STUDENTS,
VETERANS, EMPLOYEES, SENIORS, ET
CETERA. AND LASTLY, DISCOUNTS.
OR I SHOULD SAY FINALLY ON THIS
SLIDE, DISCOUNTS BASED ON
ELIGIBILITY CRITERIA POTENTIALLY
AVAILABLE TO ANY CUSTOMER AT
THAT STORE, SUCH AS BULK
PURCHASES, PARTICIPATION IN A
MAILING LIST OR OTHER
PROMOTIONS. FINALLY, AND MAYBE
MOST IMPORTANTLY FOR THE TOPIC
OF DISCUSSION ON THIS BILL, IS
THE EXEMPTIONS RELATED TO
PARTICIPATION IN A LOYALTY
MEMBERSHIP OR REWARDS PROGRAM.
THOSE EXCEPTIONS ARE PREMISED ON
THE FOLLOWING REQUIREMENTS. THAT
PARTICIPATION IN THE PROGRAM IS
VOLUNTARY. OPT IN. AFFIRMATIVE
ENROLL ENROLLMENT DISCOUNTS ARE
AVAILABLE TO ALL MEMBERS OF THAT
LOYALTY MEMBERSHIP REWARDS
PROGRAM. DISCOUNTS ARE ALLOWED
TO SUBSETS OF THE PROGRAM THAT
USE PRIOR PURCHASE HISTORY. THIS
DISCOUNT TYPE MUST BE BASED ON
TIERS, AS OPPOSED TO
INDIVIDUALIZED PERSONAL CONSUMER
PURCHASE, PURCHASE HISTORY, AND
PRICING. AND THOSE TIERS ARE
ALLOWED TO BE BASED ONLY ON
PRIOR PURCHASE HISTORY WITHOUT
THE USE OF OTHER PERSONAL INFO
OR THIRD PARTY DATA RETENTION
AND ENROLLMENT DISCOUNTS ARE
ALSO ALLOWED. THOSE DISCOUNTS
ARE DESIGNED TO ENTICE A MEMBER
WHO IS CONTEMPLATING LEAVING THE
PROGRAM, OR WHO HAS LAPSED AND
IS NOW BEING TARGETED FOR
REENROLLMENT, WHICH INCLUDES
SO-CALLED CROSS-SELLING OF
SIMILAR RELATED ITEMS. HOWEVER,
THOSE DISCOUNTS MUST BE
AVAILABLE ON EQUAL TERMS TO ALL
SIMILARLY SITUATED CONSUMERS.
-- ACCORDING TO THE POLICY
CONSIDERATIONS, WE HAVE LIKE 3
OR 4 TO DISCUSS, AND FIRST IS
THE CONSIDERATION OF
PERSONALIZED DISCOUNTS. SO
INDUSTRY STAKEHOLDERS HAVE
CLAIMED THAT THE LEGISLATION
WOULD LIMIT A COVERED
RETAILER'S ABILITY TO SET
PERSONALIZED DISCOUNTS THAT
WOULD BENEFIT CONSUMERS. THE
LEGISLATION WOULD NOT, FOR
EXAMPLE, ALLOW THE USE OF AN
INDIVIDUAL'S PRIOR PURCHASE
HISTORY TO PROVIDE DISCOUNTS ON
THEIR COMMONLY PURCHASED ITEMS.
UNLESS THAT INDIVIDUAL WAS A
MEMBER OF A RETAILER'S LOYALTY
PROGRAM AND THE DISCOUNT WAS
AVAILABLE TO ALL MEMBERS WITH A
SIMILAR PURCHASE HISTORY GROUPED
INTO TIERS, THE LEGISLATION
WOULD ALSO NOT PERMIT ANY
PERSONALIZED DISCOUNT BASED ON
AN INDIVIDUAL'S OTHER PERSONAL
INFORMATION, SUCH AS THEIR
INTERNET SEARCH. HISTORY IS
DIFFICULT TO ASCERTAIN WHETHER
THESE LIMITATIONS WOULD RESULT
IN A NET COST INCREASE FOR
CONSUMERS. THE SECOND POLICY
CONSIDERATION RELATES TO
ENFORCEMENT. THERE ARE TWO
AVENUES FOR ENFORCEMENT OF THE
BILL. ONE WOULD BE A PRIVATE
RIGHT OF ACTION OR PRA, AND I
THINK IT'S WORTH GETTING INTO A
LITTLE BIT MORE ABOUT WHAT THAT
MEANS. SO MANY CITY REGULATIONS
CONTAIN A PRA PROVISION AS AN
ALTERNATIVE TO AGENCY
ENFORCEMENT, A PRA PROVISION
ALLOWS AN INDIVIDUAL TO FILE A
CIVIL LAWSUIT AGAINST A PERSON
OR ENTITY. WHEN A LAW IS ALLEGED
TO HAVE BEEN VIOLATED.
TYPICALLY, A PRA IS NOT THE SOLE
MEANS OF ENFORCEMENT, BUT RATHER
AN ALTERNATIVE PATH TO AGENCY
ACTION. IF, FOR EXAMPLE, THE
AGENCY IS DELAYED OR DOES NOT
HAVE CAPACITY TO PURSUE
ENFORCEMENT PRA PROVISIONS AMONG
DIFFERENT REGULATIONS CAN VARY
WITH DIFFERENCES INCLUDING, BUT
NOT LIMITED TO, WHETHER CIVIL
PENALTIES OR FINES, NOT JUST
DAMAGES, CAN BE ASSESSED. WHO
WOULD HAVE STANDING TO FILE A
CIVIL ACTION, AND WHETHER A
CLASS OF PEOPLE CAN FILE INSTEAD
OF JUST INDIVIDUALS. SO IN THIS
CASE, THE BILL ALLOWS FOR A
CLASS OF INDIVIDUALS TO FILE
SUIT WITH LIQUIDATED DAMAGES
ALLOWED UP TO $10,000, FINES OR
PENALTIES OF $3,000 PER
VIOLATION, AND UP TO 10,000 PER
SUBSEQUENT VIOLATION. AND THAT
FOR PRIVATE RIGHT OF ACTION
WOULD BE CAPPED AT $1 MILLION
PER SUIT. IN ADDITION TO
LIQUIDATED DAMAGES. THIS, THE
PRIVATE RIGHT OF ACTION IN THIS
BILL WOULD BE AVAILABLE FOR ALL
COVERED, MIXED USE OR RETAILERS
OR DELIVERY SERVICE PROVIDERS,
BUT WOULD ONLY BE AVAILABLE TO
GROCERIES GROCERY STORES IF THEY
HAVE 25 OR MORE ESTABLISHMENTS
IN WASHINGTON STATE. BECAUSE OF
PRIVATE RIGHT OF ACTION REQUIRES
ACCESS TO AN ATTORNEY AND AN
ATTORNEY WHO IS WILLING TO TAKE
THE CASE. IT'S UNCLEAR WHETHER
THIS WILL BE AN ACCESSIBLE
AVENUE OF ENFORCEMENT FOR THE
AVERAGE PERSON. MANY PEOPLE WHO
SUSPECT ALGORITHMIC BASED PRICE
DISCRIMINATION MAY INSTEAD TURN
TO THE CITY ATTORNEY'S OFFICE,
WHICH WOULD BE GIVEN AUTHORITY
TO INVESTIGATE AND FILE CIVIL
ACTIONS IN COURT TO ENFORCE THE
BILL'S PROVISION. THE AVENUE
THE CITY ATTORNEY'S OFFICE
AVENUE DOES INCLUDE OR ALLOW FOR
THE SAME FINES AND LIQUIDATED
DAMAGES AS THE PRIVATE RIGHT OF
ACTION, BUT DOES NOT HAVE A CAP
THE CITY ATTORNEY'S OFFICE HAS
BEEN GIVEN NO ADDITIONAL FUNDING
FOR THIS AND NO FISCAL IMPACTS
TO THE CITY WERE IDENTIFIED.
HOWEVER, THE THE ATTORNEY'S
OFFICE MAY HAVE TO DEVELOP NEW
SYSTEMS AND PROCEDURES TO HANDLE
INTAKES DIRECTLY AND MAY NOT
HAVE CAPACITY TO TO CONDUCT
THOROUGH INVESTIGATIONS THAT
WOULD INVOLVE ANALYZING LARGE
VOLUMES OF DATA. THIS
LEGISLATION COULD CREATE
SIGNIFICANT WORKLOAD FOR THE
CITY ATTORNEY'S OFFICE. NOW,
THE NEXT COUPLE OF POLICY
CONSIDERATIONS ARE MORE
CONTEXTUAL. I THINK IN THE MEMO,
THE EXISTING CONSUMER PROTECTION
LAWS WERE MORE WERE WERE NOT
UNDER THE CONTEXTUAL SECTION. IT
PROBABLY DOES BELONG MORE AS AS
JUST CONTEXT. THE THERE ARE A
NUMBER OF EXISTING CONSUMER
PROTECTION LAWS WHICH, AS TOMASO
MENTIONED, DO NOT NECESSARILY
COVER THE SPECIFIC INSTANCE OF
ALGORITHMIC BASED PRICE
DISCRIMINATION. HOWEVER, THEY DO
ADDRESS THE NEED FOR
TRANSPARENCY IN IN PRICING AND
SO MAY INTERSECT WITH WITH THIS
ISSUE AS WELL. AND IT'S UNCLEAR
HOW THOSE THESE LAWS DO
INTERSECT AND WHETHER WHETHER
STRONGER ENFORCEMENT OR OTHER
OTHER AVENUES LOOKING AT THESE
LAWS MIGHT ALSO GET AT THE SAME
ISSUE. THERE'S ALSO, AS TOMASO
MENTIONED, THE POTENTIAL FOR
PREEMPTION AT THE STATE IF IT IS
CONSIDERED IN THE 2027
LEGISLATIVE SESSION. SO THE NEXT
STEPS TODAY, THE INTENTION, I
BELIEVE, IS TO DISCUSS ANY
PLANNED AMENDMENT CONCEPTS AND
ALSO TO TO ASK QUESTIONS OF
CENTRAL STAFF FOR ANY CLARIFYING
QUESTIONS FOR OUR MEMO. THE NEXT
SPECIAL COMMITTEE MEETING OF THE
OF THE OF THE HUMAN SERVICES,
LABOR AND ECONOMIC DEVELOPMENT
COMMITTEE IS GOING TO BE
SEPTEMBER 11th, WHERE THERE WILL
BE A FORMAL PRESENTATION OF
AMENDMENTS AND AN ANTICIPATED
COMMITTEE COMMITTEE VOTE IN THE.
AND THEN IT SHOULD GO ON IF IT
IS VOTED OUT OF. COMMITTEE WOULD
GO ON TO THE FULL COUNCIL ON
SEPTEMBER 22nd. AND WITH THAT,
THAT CONCLUDES OUR PRESENTATION.
-- THANK YOU SO MUCH FOR THE
PRESENTATION, AND THANK YOU
AGAIN FOR YOUR WORK ON THIS,
COLLEAGUES. I'LL OPEN IT UP
FIRST TO YOU FOR QUESTIONS THAT
YOU HAVE ON THE PRESENTATION AND
THE BILL
I AM NOT SEEING ANY HANDS. I'M
HAPPY TO ASK A COUPLE OF
QUESTIONS JUST TO GET US GOING.
WHILE MY COLLEAGUES ARE
CONSIDERING POTENTIAL QUESTIONS,
I THINK JUST KICKING US OFF FROM
YOUR ASSESSMENT, WITHOUT AN
OBJECTIVE, BONA FIDE MARKET
PRICE STANDARD, WHAT PREVENTS A
RETAILER FROM INFLATING NOMINAL
PRICE AND PRESENTING DIFFERENT
INDIVIDUALIZED FINAL PRICES AS
DISCOUNTS?
-- I THINK IT'S IT'S DIFFICULT
TO TO SAY, BUT I WOULD I WOULD
SAY THAT THAT'S PARTLY WHY THE
CONTEXTUAL POLICY CONSIDERATION
WAS BROUGHT UP IN THE SENSE THAT
IT'S POSSIBLE THAT EXISTING
CONSUMER CONSUMER PROTECTION
LAWS COULD COULD REGULATE
WHETHER A PRICE LIKE WHAT WHAT
EXACTLY IS THE DISPLAYED UNIT
PRICE AND WHAT AND WHETHER THAT
CAN CHANGE BASED ON INDIVIDUAL.
BUT BUT AGAIN, THAT IS UNCLEAR.
AND SO THIS TO MY KNOWLEDGE,
THERE'S NOTHING THAT
SPECIFICALLY BANS THE USE OF, OF
PERSONAL DATA IN INDIVIDUALIZED
PRICING.
-- THANK YOU. AND TAKING US TO
ELEMENTS RELATED TO ENFORCEMENT,
IF THEORETICALLY, A PRIVATE
ENFORCEMENT WAS ELIMINATED AND
THE CITY ATTORNEY LACKS THE
CAPACITY TO BE ABLE TO ENFORCE
THIS AS IDENTIFIED IN YOUR MEMO,
WHAT REMEDY WOULD REALISTICALLY
REMAIN FOR AN INDIVIDUAL
CONSUMER SEEKING RECOURSE
-- WELL, IF THE PRIVATE RIGHT OF
ACTION WAS ELIMINATED, THE SOLE
ENFORCEMENT MECHANISM THAT WOULD
REMAIN IN THE BILL WOULD BE THE
CITY ATTORNEY'S OFFICE. SO I
THINK THAT, YOU KNOW, WE'VE
IDENTIFIED THAT THERE THERE MAY
BE CHALLENGES OR CAPACITY
SCALING NEEDED TO EFFECTUATE THE
CITY ATTORNEY'S OFFICE
ENFORCEMENT. I, I DON'T THINK
THAT WE'RE SAYING AND I DON'T
THINK THE CITY ATTORNEY'S OFFICE
HAS SAID THAT THEY WOULD BE
FUNCTIONALLY UNABLE TO ENFORCE
THIS. I THINK, YOU KNOW, AS WITH
ANY NEW REGULATORY SCHEME, THERE
WOULD BE A TIME THAT WOULD BE
REQUIRED INTERNAL WORK AND
CAPACITY DEVELOPMENT THAT WOULD
NEED TO HAPPEN. I THINK OUR
UNDERSTANDING, OUR BELIEF IS
THAT THERE WOULD BE SOME
ENFORCEMENT THAT WOULD OCCUR. IT
JUST MAY NOT BE AS ROBUST AS IT
OTHERWISE WOULD BE. AT THE CITY
ATTORNEY'S OFFICE WITHOUT THE
PROVISION OF ADDITIONAL
RESOURCES. SO THE THE SHOULD THE
PRIVATE RIGHT OF ACTION BE
ELIMINATED WITHOUT ANY OTHER
CHANGES TO THE CURRENT
ENFORCEMENT MECHANISMS? YOU
KNOW, INDIVIDUALS WOULD BE ABLE
TO MAKE COMPLAINTS MAKE REQUESTS
TO THE CITY ATTORNEY'S OFFICE,
AND THE CITY ATTORNEY'S OFFICE
WOULD EVALUATE AND INVESTIGATE
TO THE BEST OF THEIR AUTHORITY,
TO BEST OF THEIR ABILITY. USING
THIS NEW AUTHORITY. SO I THINK
IT'S IMPORTANT TO TO SAY, YES,
YOU KNOW, WE BELIEVE THAT THERE
COULD BE CAPACITY CHALLENGES.
HOWEVER, THAT IS NOT TO SAY THAT
THERE WOULD NOT BE ANY
ENFORCEMENT OR COMPLAINT
MECHANISM AVAILABLE TO
INDIVIDUALS. THEY WOULD BE THEY
WOULD GO TO THE CITY ATTORNEY'S
OFFICE, AND THEN THEY WOULD
RESPOND IN ACCORDANCE TO THEIR
CAPACITY.
-- JASMINE
-- YOU KNOW, ANY REGULATORY
AGENCY AT THE CITY, YOU KNOW,
WOULD HAVE INTERNAL POLICIES AS
TO, YOU KNOW, IF THEY IF THEY IF
THEIR COMPLAINTS EXCEED THEIR
CAPACITY TO THOROUGHLY
INVESTIGATE AND ENFORCE. AND SO
OUR UNDERSTANDING IS THAT IF THE
IF THE COMPLAINTS DO EXCEED THE
CITY ATTORNEY'S OFFICE CAPACITY,
THAT THE ATTORNEY'S OFFICE WOULD
DEVELOP INTERNAL POLICIES AS TO
PRIORITIZATION AS WELL AS, YOU
KNOW, OTHER OTHER AVENUES OF
GETTING REDRESS. SO
-- THANK YOU BOTH FOR UNPACKING
THAT. AND MY LAST QUESTION
BEFORE I TURN IT BACK TO MY
COLLEAGUES, IS JUST THINKING
ABOUT THIS A LITTLE BIT IN
PRACTICE. HOW WOULD REFUNDING
THE ONE CUSTOMER WHO DISCOVERS A
VIOLATION CURE AN ALGORITHMIC
PRICING PRACTICE THAT MAY HAVE
AFFECTED THOUSANDS OF CUSTOMERS?
-- I MEAN, I THINK IT'S HARD TO
SAY. I THINK THAT THE THE
IMPLICATION WITH WITHIN YOUR
QUESTION IS CORRECT TO SOME
EXTENT THAT, YOU KNOW AN
INDIVIDUAL, AN INDIVIDUAL REFUND
WOULD NOT NECESSARILY RESOLVE
THE UNDERLYING ISSUE. I THINK
THE THE PROHIBITIONS AND THE
ENFORCEMENT MECHANISMS THAT ARE
IN THE BILL RIGHT NOW ARE YOU
CAN THINK ABOUT THEM SERVING A
DUAL PURPOSE, RIGHT, WITH THE
PRIVATE RIGHT OF ACTION, IN
PARTICULAR, YOU KNOW, THERE
NEEDS TO BE A SPECIFIC INJURY
ALLEGED. AND THEN THE PRIVATE
RIGHT OF ACTION CREATES A
STATUTORY ABILITY FOR SOMEONE TO
PURSUE CIVIL LAWSUIT TO, TO BOTH
SEEK REDRESS FOR THOSE
INDIVIDUAL OR COLLECTIVE. IN THE
CASE OF A, YOU KNOW, A CLASS, A
CLASS SUIT, WHAT THEY WOULD HAVE
TO ALLEGE TO HAVE STANDING IS
THAT THERE WAS, YOU KNOW, THERE
WASN'T A SPECIFIC INJURY. SO
THAT WOULD ALLOW THEM TO BOTH
SEEK REDRESS FOR THAT SPECIFIC
INJURY, BUT THEN ALSO SEEK
ENFORCEMENT OF THE PROHIBITIONS
IN, IN, IN THE BILL. SO I THINK
THAT THE ENFORCEMENT MECHANISMS
ON THE CITY ATTORNEY OFFICE SIDE
ARE, ARE DESIGNED SIMILARLY,
BOTH TO PURSUE DAMAGES AND TO
PURSUE COMPLIANCE AS WELL.
-- THANK YOU SO MUCH FOR THAT
RESPONSE. AND ACTUALLY, MY LAST
QUESTION, AND JUST TO GET IT ON
THE RECORD AGAIN, WHAT
PROTECTIONS IN THE CURRENT BILL
ALREADY PRESERVE LEGITIMATE
LOYALTY PROGRAMS, COUPONS,
PROMOTIONS AND PURCHASE HISTORY
TIERS
-- YES. SO AS AS WE DISCUSSED,
THERE ARE VARIOUS EXCEPTIONS
RELATED TO DISCOUNTS. AS I
MENTIONED BEFORE, THE, THE
EXCEPTIONS RELATED TO DISCOUNTS
COVER THIRD PARTY OR
MANUFACTURERS COUPONS, PROVIDED
THAT THOSE COUPONS DO NOT
INVOLVE DO NOT REQUIRE OR USE
THE SHARING OR USE OF INDIVIDUAL
CUSTOMER INFORMATION. GROUP
DISCOUNTS BASED TO DEFINED
GROUPS TARGETED AT DEFINED
GROUPS AND DISCOUNTS BASED ON
ELIGIBILITY CRITERIA AVAILABLE
TO TO ANY CUSTOMER. I THINK THAT
YOU KNOW, A LOT OF THE BULK OF
THIS CONVERSATION HAS BEEN
RELATED TO THE LOYALTY PROGRAM
DISCOUNTS, AND I THINK THE
WITHOUT, YOU KNOW, WITHOUT
REITERATING EVERYTHING I SAID
BEFORE, I THINK THE SORT OF KEY
THING HERE IS THAT THE, THE MOVE
AWAY FROM CARNATION CONSUMER BY
CONSUMER OR MEMBER BY MEMBER
DISCOUNTS THAT MIGHT VARY
BETWEEN, YOU KNOW, IF JASMINE
AND I ARE BOTH PART OF THE SAME
LOYALTY PROGRAM AT THE SAME
STORE, I THINK WHAT THE BILL IS
REQUIRING AND ATTEMPTING TO DO
IS ENSURE THAT EACH OF US WOULD
RECEIVE SIMILAR DISCOUNTS,
DISCOUNTS THAT, YOU KNOW, IF WE
HAD VERY DIFFERENT PRIOR
PURCHASE HISTORIES. JASMINE AND
I, WE WOULD, WE MAY MIGHT NOT
RECEIVE THE SAME PURCHASE
HISTORY RELATED DISCOUNT, BUT IF
COUNCIL COUNCILMEMBER RINCK, IF
YOU AND I, THE THREE OF US WERE
A PART OF A LOYALTY PROGRAM AND
YOU AND I HAD A SIMILAR PURCHASE
HISTORY THAT THAT DISCOUNT
PURCHASE HISTORY DISCOUNT WOULD
BE AVAILABLE TO BOTH OF US BASED
ON A BROADER TIER OR OR CLASS OF
BEHAVIOR RATHER THAN, YOU KNOW,
INDIVIDUAL PERSON TO PERSON
VARIATION IN WHAT DISCOUNTS
WOULD BE AVAILABLE. SHOULD WE
ALL BE PART OF THE SAME LOYALTY
PROGRAM? SO I DON'T, YOU KNOW,
THAT'S, THAT'S I'M, I'M, I'M
PAINTING IN BROAD STROKES TO TRY
TO EXPLAIN IT A LITTLE BIT
BETTER WITHOUT REITERATING
MYSELF. SO, SO THAT'S NOT
EXACTLY, EXACTLY IT, BUT THAT'S
THE IDEA OF THE BILL
-- AYE.
-- I THINK TO MAYBE AND GETTING
JUST GOING FURTHER INTO THE,
INTO LIKE, LIKE THE EXAMPLE OF
TOMASO MYSELF, LIKE IF WE, IF I
PURCHASE, YOU KNOW, A LOT OF
CHEERIOS AND, YOU KNOW, AND
TOMASO PURCHASES LIKE MAYBE LIKE
I'VE PURCHASED FIVE BOXES A
WEEK AND HE PURCHASES LIKE TWO
BOXES A WEEK, YOU KNOW, I
WOULDN'T NECESSARILY BE I
COULDN'T GET A COUPON THAT WAS
JUST INDIVIDUALIZED FOR ME TO
GET FIVE BOXES. BUT IF THERE WAS
A TIER OF FOLKS, LIKE ANYONE WHO
GETS MORE THAN ONE, ONE BOX OF
CHEERIOS A WEEK WOULD WOULD
QUALIFY FOR THIS COUPON, THAT
WOULD BE ALLOWED. SO I THINK
THERE WOULD BE ARGUABLY SOME
MORE RESTRICTION ON LOYALTY
PROGRAM MEMBERS FROM GETTING
LIKE PERSONALIZED,
INDIVIDUALIZED COUPONS BASED ON
THEIR PURCHASE HISTORY. THEY'D
HAVE TO BE GROUPED INTO LARGER
TIERS, BUT IT'S UNCLEAR HOW MUCH
THAT TRULY IS A LIMITATION.
-- YEAH, I THINK ANOTHER WAY TO
THINK ABOUT WHAT THIS ORDINANCE
DOES IS THERE ARE SOME
COMPONENTS OF IT THAT ARE MAYBE
MORE FORWARD LOOKING BASED ON
BUSINESS PRACTICES THAT WE
AREN'T SEEING YET LOCALLY OR
AREN'T SEEING AT A IN A
WIDESPREAD WAY. I THINK THE
ELECTRONIC SHELF LABELS IS AN
EXAMPLE OF THAT THERE. THAT IS
NOT A TECHNOLOGY THAT IS VERY
WIDESPREAD. YET IN OUR IN OUR
CITY THERE ARE SOME PLACES WHERE
IT EXISTS, BUT IT IS NOT, YOU
KNOW, THE DOMINANT FORM OF SHELF
LABEL TECHNOLOGY. SO IN THAT
SENSE, YOU KNOW, THAT THE
INTERVENTION THAT THE BILL IS
MAKING, THERE IS MAYBE MORE
FORWARD LOOKING IN TERMS OF THE
PROHIBITION THERE ARE THE
CHANGES THAT WE'RE DESCRIBING TO
LOYALTY AND MEMBERSHIP REWARDS
PROGRAMS. SOME OF THOSE, YOU
KNOW, ARE ALREADY MORE
WIDESPREAD BUSINESS PRACTICES.
AND IN THAT SENSE, LIKE THOSE,
THOSE COMPONENTS OF THIS BILL
WOULD SEEK TO CHANGE WHAT IS
ALREADY A CURRENT BUSINESS
PRACTICE THAT'S MORE WELL
ESTABLISHED IN THE CITY.
-- THANK YOU BOTH FOR TAKING A
STAB AT OUTLINING ALL OF THOSE
SCENARIOS FOR US. IT'S REALLY
APPRECIATED. COLLEAGUES, ANY
ADDITIONAL QUESTIONS OR COMMENTS
ON THIS BEYOND JUST QUESTIONS? I
KNOW THIS IS TIME SET ASIDE TO
TALK ABOUT POTENTIAL AMENDMENT
CONCEPTS. SO THIS IS A FORM TO
BE ABLE TO BRING THOSE UP AS
WELL. VICE CHAIR FOSTER.
-- THANK YOU SO MUCH. I
APPRECIATE THE CLARIFICATION. I
WAS WAITING FOR THE TIME TO
BRING UP AMENDMENT CONCEPTS, SO
THANK YOU FOR THAT. I JUST WANT
TO SHARE WITH MEMBERS OF THE
COMMITTEE. OUR OFFICE IS LOOKING
AT AN AMENDMENT CONCEPT TO HELP
CLARIFY WHO IS AN AGGRIEVED
PARTY. SO LOOKING AT THE THE
CURRENT LANGUAGE THAT STATES
TANGIBLE COMPARED TO INTANGIBLE
HARM. SO WE WILL BE WORKING WITH
CENTRAL STAFF ON THAT IN THE
COMING WEEKS. AND THE INTEREST
THERE IS TO MAKE SURE THAT AS WE
ARE IMPLEMENTING PRIVATE RIGHT
OF ACTION, WE HAVE CLARITY ON
WHO IS ELIGIBLE FOR A CLASS, AND
WE WANT TO MAKE SURE THAT WE
HAVE CLARITY IN THE THE
LANGUAGE.
-- THANK YOU FOR SHARING THAT,
VICE CHAIR FOSTER. OTHER
COMMITTEE MEMBERS, IF THERE'S
ANYTHING ELSE YOU'D LIKE TO
SHARE OR ADDITIONAL QUESTIONS ON
THE BILL, I'D LIKE TO GIVE YOU
SPACE FOR THAT, BUT I ALSO
WON'T BELABOR THE POINT. IF
WE'RE READY TO MOVE ON. HEARING
AND SEEING NO ADDITIONAL HANDS,
I'M GOING TO THANK CENTRAL
STAFF AGAIN FOR TODAY'S
PRESENTATION AND WALKING THROUGH
AND ANSWERING QUESTIONS.
COLLEAGUES, WE WILL BE TAKING UP
AMENDMENTS AND A VOTE ON THIS
BILL AT OUR NEXT COMMITTEE
MEETING SEPTEMBER 11th, I
BELIEVE. YES, THANK YOU, THANK
YOU. AND SO WITH THAT, WE WILL
NOW CLOSE THIS OUT AND MOVE ON
TO OUR FIFTH AND FINAL ITEM OF
BUSINESS FOR THE DAY. THANK YOU
ALL AGAIN. MOVING TO OUR FIFTH
AND FINAL ITEM OF BUSINESS. WILL
THE CLERK PLEASE READ ITEM FIVE
INTO THE RECORD?
-- ITEM FIVE COUNCIL BILL ONE
TWO, 1275. AN ORDINANCE RELATING
TO COMMERCIAL TENANCIES
ESTABLISHING LESSER REQUIREMENTS
TO PROVIDE TRANSPARENCY
REGARDING ACCESS TO THE LEASE
AGREEMENT. PREVIOUS CERTIFICATE
OF OCCUPANCY FOR THE SPACE AND
EXISTING CONDITIONS OF THE SPACE
AND TRIPLE NET
EXPENSES AND AMENDING SECTIONS
610402061040306104060 AND
6104070 AND 6104080 OF THE
SEATTLE MUNICIPAL CODE FOR
BRIEFING AND DISCUSSION.
-- THANK YOU SO MUCH,
COLLEAGUES. AT THE JULY 17th
MEETING OF THIS COMMITTEE, STAFF
AT THE OFFICE OF ECONOMIC
DEVELOPMENT BRIEFED US ON A
VARIETY OF CHALLENGES. OUR LOCAL
SMALL BUSINESSES ARE FACING, AND
WE HAD MEMBERS OF THE BUSINESS
COMMUNITY REALLY SPEAKING TO
THOSE CHALLENGES THEMSELVES IN
DIRECT TESTIMONY. ONE CLEAR
COMMON THEME WAS THAT THE COSTS
OF SECURING A LEASE ON A SPACE
AND MAKING NECESSARY TENANT
IMPROVEMENTS CAN MAKE OR BREAK A
SMALL BUSINESS BEFORE IT CAN
EVEN OPEN ITS DOORS. IN WORST
CASE, BUT NOT AT ALL UNCOMMON
SCENARIOS. NEW TENANTS IN
COMMERCIAL SPACES DISCOVER IS
THAT THE LEASE, THE SPACE THAT
THEY LEASED, IS NOT WHAT THEY
THOUGHT THEY WERE GETTING, AND
THAT TENS OR EVEN HUNDREDS OF
THOUSANDS OF DOLLARS IN BUILD
OUTS, RETROFITS AND PERMITS WILL
BE NEEDED TO SECURE OCCUPANCY
BEFORE THEY CAN BRING IN A
SINGLE DOLLAR OF REVENUE. AND ON
THE OTHER SIDE ARE COMMERCIAL
PROPERTY OWNERS AND MANAGERS
HAVE FACED CHALLENGES FINDING
AND SECURING LONG TERM TENANTS
WHO COME TO THE TABLE, PREPARED
AND INFORMED ENOUGH TO MAKE THE
MOST OF WHAT IS OFTEN THE
BIGGEST INVESTMENT OF THEIR
LIVES, AND SMALL BUSINESS OWNERS
ARE NOT REAL ESTATE EXPERTS.
I'M NOT A REAL ESTATE EXPERT BY
ANY MEANS, AND THE LEASERS OF
THESE SPACES ARE NOT EXPERTS IN
THE SPECIFIC NEEDS OF EACH
BUSINESS. AND WHEN THAT
INFORMATION ISN'T CLEAR,
MISTAKES CAN BE MADE AND
EVERYBODY LOSES. SO OUR
BUSINESSES, OUR COMMERCIAL
LANDLORDS, AND ULTIMATELY ALL OF
US IN SEATTLE WHO WALKED PAST
EMPTY STOREFRONTS INSTEAD OF
HAVING AN OPPORTUNITY TO SUPPORT
OUR LOCAL ENTREPRENEURS AND OUR
THRIVING NEIGHBORHOOD BUSINESS
DISTRICTS. SO THE OFFICE OF
ECONOMIC DEVELOPMENT, IN
PARTNERSHIP WITH MY OFFICE, HAS
BEEN EXPLORING OPTIONS TO MAKE
RENTING A COMMERCIAL SPACE IN
SEATTLE MORE AFFORDABLE AND LESS
RISKY, AND HONING IN ON THOSE
WAYS TO MAKE SURE THAT POTENTIAL
TENANTS HAD ALL THE INFORMATION
POSSIBLE ABOUT A SPACE BEFORE
CONSIDERING LEASING, AND THAT
LANDLORDS WERE CLEAR IN THEIR
DUTIES TO DISCLOSE WHAT THEY
KNEW ABOUT A SPACE AND HOW THEIR
TERMS WOULD BE DETERMINED. SO,
TO BE CLEAR, IN DOZENS OF
MEETINGS WITH STAKEHOLDERS ON
BOTH SIDES OF A LEASE, IT WAS
CLEAR THAT THE MAJORITY OF
COMMERCIAL LANDLORDS ALREADY DO
MOST, IF NOT ALL, OF WHAT IS IN
THIS BILL. BUT THIS ORDINANCE
SEEKS TO ENSHRINE THOSE BEST
PRACTICES INTO REGULATION TO
ENSURE ALL LANDLORDS AND TENANTS
ARE PLAYING FROM THE SAME
RULEBOOK. SO REDUCING THE RISK
OF SMALL BUSINESSES FALLING PREY
TO BAD ACTORS, OR SIMPLY SIGNING
UP FOR SOMETHING THEY DON'T
FULLY UNDERSTAND, WILL MEAN LESS
COSTLY SURPRISES FOR TENANTS AND
LANDLORDS, AND BETTER CHANCES
FOR LONG TERM TENANCIES AND A
THRIVING, SUSTAINED SMALL
BUSINESS ECOSYSTEM. AND SO WITH
THAT INTRODUCTION, I'D LOVE TO
TURN IT OVER TO THE OFFICE OF
ECONOMIC DEVELOPMENT TO SHARE
DETAILS ON THE LEGISLATION.
-- GREAT.
-- THANK YOU SO MUCH, CHAIR
RINCK AND MEMBERS OF THE
COMMITTEE. WE CAN START WITH
SOME QUICK INTRODUCTIONS. I'M
ALICIA TEAL, DEPUTY DIRECTOR AT
THE OFFICE OF THE OFFICE OF
ECONOMIC DEVELOPMENT.
-- HI, ISAAC HOROWITZ, A POLICY
ADVISOR AT OED.
-- SO WHEN GREEN TENANT
IMPROVEMENT MANAGER
-- FOR THE RECORD, JASMINE
MARWAHA COUNCIL CENTRAL STAFF.
-- GOOD MORNING WITH YOUR
CENTRAL STAFF
-- GREAT. SORRY. OH, PERFECT.
THANK YOU. CHAIR RINCK. THANK
YOU SO MUCH FOR THAT
INTRODUCTION. YOU ACTUALLY
COVERED MUCH OF THE GROUND I WAS
GOING, WHICH IS PERFECT BECAUSE
I THINK WE'RE VERY ALIGNED ON
KIND OF HOW THIS LEGISLATION
CAME ABOUT. AND SO I THINK THE
COMMITTEE IS VERY FAMILIAR WITH
THE WORK OF OFFICE OF ECONOMIC
DEVELOPMENT. BUT JUST A QUICK
NOTE, OUR CORE PURPOSE IS
LEADING PROJECTS AND MAKING
INVESTMENTS THAT OPEN UP ACCESS
TO ECONOMIC OPPORTUNITIES,
REDUCE THE RACIAL WEALTH GAP,
AND ENCOURAGE INNOVATION AND
GROWTH. ACCESS TO COMMERCIAL
SPACES AND VIBRANT NEIGHBORHOOD
CORRIDORS IS CERTAINLY PART OF
THAT WORK, AND THAT'S TWO OF THE
PILLARS OF THE COMMUNITY DRIVEN
FUTURE OF SEATTLE ECONOMY
FRAMEWORK, WHICH SERVES AS THE
CITY OF SEATTLE'S ECONOMIC
DEVELOPMENT POLICY FRAMEWORK VIA
RESOLUTION 32099. SO WE LIKEWISE
COUNCILMEMBER RINCK HAVE
APPRECIATED THE OPPORTUNITY TO
WORK WITH YOU AND YOUR STAFF AS
WE DEVELOP THIS PROPOSAL AND
THIS IDEA EVOLVED ORGANICALLY
THROUGH OUR WORK OVER THE YEARS,
ESPECIALLY WITH SMALL
BUSINESSES. AND AS YOU NOTED,
SOME OF THESE THEMES CAME UP AT
THE JULY 17th COMMITTEE MEETING
ROUNDTABLE. AND SO AS WE WORK TO
STRENGTHEN THAT ECOSYSTEM THAT
YOU MENTIONED FOR THESE GROUND
FLOOR CORRIDORS THAT ARE
INVITING FOR RESIDENTS,
BUSINESSES, AND VISITORS, WE
WANT TO USE THE FULL TOOLKIT
FROM PROGRAMS AND INVESTMENTS.
AND IN THIS CASE, POLICY AS WELL
TO SUPPORT THAT. AND AS YOU
NOTED, LANDLORDS AND PROPERTY
MANAGERS ARE A CRITICAL PART OF
THAT ECOSYSTEM. THEY'VE BEEN
VALUED PARTNERS TO THE WORK OF
OUR OFFICE, INCLUDING SEATTLE,
RESTORED. YOU CAN SEE A COUPLE
OF BUSINESSES WHO HAVE
PARTICIPATED IN THAT PROGRAM
HERE. AND WE BELIEVE THAT THIS
PROPOSAL WILL LEAD TO BETTER
OUTCOMES ACROSS THIS ECOSYSTEM,
ESPECIALLY BECAUSE, AS YOU
NOTED, THE PROPOSAL REFLECTS
MANY OF THE BEST PRACTICES THAT
LANDLORDS AND PROPERTY, MANY
LANDLORDS AND PROPERTY MANAGERS
ARE INCORPORATING. AND SO THIS
BASELINE ACROSS OUR CITY CAN
HELP US AVOID SOME OF THE WORST
CASE SCENARIOS THAT WE HAVE
ENCOUNTERED WHILE SUPPORTING
SMALL BUSINESSES. AND THESE
WORST CASES HAVE UNFORTUNATELY
LED TO DISPUTES, UNEXPECTED,
EXTENDED AND COSTLY TENANT
IMPROVEMENTS, AND PERMITTING
PROCESSES. AND SO THIS SLIDE
JUST GIVES SOME CONTEXT FOR HOW
THESE ISSUES CAME TO OUR
ATTENTION. THIS CHART SHOWS THE
TIERED INVESTMENTS THAT OUR
OFFICE MAKES TO HELP BUSINESSES
STABILIZE AND GROW. THEY RANGE
FROM THE LEFT FROM, AND THEY
KIND OF GO FROM LIKE LOWEST
BARRIER TO MORE AND MORE VETTING
AND LARGER INVESTMENT. OUR ABC
PROGRAM PROVIDES ACCOUNTING AND
BUSINESS CONSULTING, AND THEN WE
ALSO HAVE A NUMBER OF PROGRAMS
TO STRENGTHEN ACCESS AND
READINESS FOR COMMERCIAL SPACE.
SINCE THAT IS SUCH A BIG PART OF
THE ISSUES THAT WE SEE TODAY,
INCLUDING VACANCY, WE WANT TO
MAKE SURE THAT AS MANY SPACES
ARE, ARE OCCUPIED AND VIABLE AS
POSSIBLE. AND SO THIS PROPOSAL
GREW OUT OF STAFF AND
CONSULTANTS IDENTIFYING
PATTERNS, ADMINISTERING OUR
COMMERCIAL SPACE CONSULTING
PROGRAM, WHICH IS THAT KIND OF
LIKE BROWNISH RED ONE TWO IN
FROM THE LEFT. THAT PROGRAM
REALLY WORKS WITH BUSINESSES WHO
ARE LOOKING FOR A PROSPECTIVE
SPACE OR ARE LOOKING TO MAKE
IMPROVEMENTS TO THEIR SPACES,
AND IS OFFERING CONSULTING
SUPPORT FOR FREE AND OUR TENANT
IMPROVEMENT PROGRAM, WHICH IS
THE BROWN BAR TWO FROM THE
RIGHT, OR THE SECOND ONE FROM
THE RIGHT, WHICH INVESTS IN
EQUIPMENT, SIGNAGE AND BUILD
OUTS. AND SO EVEN AS BOTH OF
THOSE PROGRAMS AND REALLY ALL OF
OUR PROGRAMS INVOLVE EDUCATING
BUSINESS OWNERS AND OPERATORS,
AND IN THE CASE OF THE TENANT
IMPROVEMENT PROGRAM, ALSO
ASSESSING BUSINESS VIABILITY AND
EXPERIENCE, THE ISSUES THAT THIS
LEGISLATION SEEKS TO ADDRESS ARE
STILL A GAP WHERE A POLICY
CHANGE IS A REALLY CRITICAL
COMPONENT TO THE EDUCATION THAT
OED AND OTHERS, INCLUDING OUR
CONSULTANTS, OFFER. SO NOW I'LL
TURN IT OVER TO MY COLLEAGUE
SELWYN TO TALK MORE ABOUT THE
SPECIFIC ISSUES WE PROPOSE
ADDRESSING
-- HI. AS YOU SAW IN THE LAST
SLIDE, WE HAVE A CONTINUUM OF
PROGRAMS THAT WE OFFER TO SMALL
BUSINESSES, AND IN PARTICULAR,
MY COLLEAGUES AND I, AND
CONSULTANTS. WE ACTUALLY READ
OVER HUNDREDS AND HUNDREDS AND
HUNDREDS OF LEASES. AND THROUGH
OUR COMMERCIAL SPACE CONSULTING
PROGRAM, WE DO A LOT OF BUSINESS
ADVOCACY WORK BETWEEN LANDLORDS
AND TENANTS. SO WE SAT DOWN LAST
YEAR AND WE THOUGHT ABOUT WHAT
COULD WE EFFECT, YOU KNOW, WHAT
COULD WE REALLY HELP BUSINESSES
OVERALL TO REALLY GET THEM TO BE
ABLE TO HAVE STABILIZATION GROW
IN THEIR COMMUNITIES AND THRIVE?
AND WE KEPT SEEING THESE KIND OF
COMMON THEMES THAT COME UP WHEN
WE'RE DOING OUR ADVOCACY WORK.
SO THESE ARE SOME OF THE THINGS
THAT BUBBLED UP. AND ONE OF
THEM, YOU, IS NO COPY OF THE
SIGNED LEASE. I KNOW THAT MIGHT
BE SHOCKING, BUT ACTUALLY, YOU
KNOW, TENANTS WILL SIGN THEIR
LEASE AND NOT GET A COPY OF IT.
AND IT REALLY PUTS A REAL STRAIN
OF FOG INTO WHAT THEIR BUSINESS
IS LIKE. THEY DON'T HAVE THEY
DON'T KNOW WHAT IS IN THEIR
LEASE. THEY DON'T KNOW HOW IT'S
GOING TO OPERATE, WHO'S GOING TO
BE RESPONSIBLE FOR WHAT, WHAT IS
THE PRICING WHEN THE LEASE IS
OVER WITH? SO THEY'RE IN THE
FOG. THEY JUST DON'T KNOW. AND
IT SEEMS CRAZY TO THINK ABOUT.
BUT YES, THEY DO NOT HAVE THEIR
OWN LEASE FOR THEIR COMMERCIAL
SPACE. SECONDLY, THE
MISUNDERSTANDING OF THE ALLOWED
USE OF SPACE, THIS HAS CREATED A
LOT OF ISSUES. WHEN A TENANT
GOES INTO A SPACE, THEY SIGN A
LEASE AND THEY THINK, SAY IT'S A
SALON, THEY THINK IT'S A SALON.
IT WAS A SALON BEFORE IT WAS
MARKETED AS A SALON WITH THE
LANDLORD. AND THEN THEY SIGNED
THEIR LEASE. THEY GO INSIDE TO
DO SOME MINOR UPGRADES AND GET A
PERMIT FOR THAT, AND COME TO
FIND OUT, THEY DON'T HAVE IT
WAS NEVER PERMITTED FOR THAT. SO
THEN THEY'RE ON THE HOOK FOR
ACTUALLY UPGRADING THAT SPACE,
WHICH COST TENS AND TENS OF
THOUSANDS OF DOLLARS FOR THEM TO
BRING IT UP TO CODE AND GET IT
PERMITTED PROPERLY. MOST OF THE
CASES, THEY DON'T GET ANY KIND
OF COMPENSATION FROM THE
LANDLORD. THEY HAVE TO THEN PAY
THEIR RENT ON TOP OF MAKING ALL
THESE UPGRADES TO BRING THEM UP
TO CODE. AND SIMILARLY WITH THE
THIRD ONE, DISCOVERING FAULTY
CONDITIONS OR INADEQUATE
UTILITIES ONLY AFTER SIGNING THE
LEASE. SO IMAGINE YOU'RE GOING
IN AND YOU ARE TRYING TO START
YOUR BUSINESS. YOU HAVE A
LIMITED BUDGET, AND THEN YOU
COME TO FIND OUT THAT YOU DON'T
HAVE THE UTILITIES, YOUR HOOD
DOESN'T WORK, YOUR PLUMBING IS
BACKED UP. IT CAUSES
CATASTROPHIC OUTCOMES FOR A
BUSINESS TRYING TO GET STARTED.
I MEAN, BEFORE THEY EVEN OPEN UP
THEIR DOORS, THEY ARE DROWNING
IN A SEA OF RED INK. AND LASTLY,
WE THOUGHT ABOUT THIS TRIPLE NET
EXPENSES, WHICH ARE OPERATIONAL
EXPENSES. EVERYBODY KNOWS
OPERATIONAL EXPENSE EXPENSES ARE
GOING UP ALL THE TIME. AND SO
IT'S NOTHING THAT WE KNOW WE
CAN DO ABOUT THAT. I MEAN, THIS
HAPPENED TO ALL OF US, EVEN
PRIVATELY IS HAPPENING TO
EVERYONE. BUT WHAT IT IS, THE
ISSUE IS THAT, YOU KNOW, A LOT
OF THESE LEASES ARE 30 PAGES AND
IT MIGHT BE A SMALL PARAGRAPH ON
PAGE 25 WITH A COUPLE OF
PERCENTAGES AND A DEFINITION.
AND SO WHAT DOES THAT EQUATE TO
FOR A BUSINESS? THEY REALLY,
REALLY DON'T KNOW. YOU KNOW,
THAT THOSE PERCENTAGES AND HOW
IT'S PRESENTED IS NOT
EXPLAINED. AND PEOPLE ARE
SIGNING OFF ON THAT TO COME TO
FIND OUT WHEN IT'S TIME TO PAY
IT. IT MIGHT BE HALF OF THEIR
RENT. IT MIGHT BE MORE THAN HALF
OF THEIR RENT, AND THEY HAVE NOT
ALLOCATED THAT OPERATIONAL COST
WITHIN THEIR BUDGET. SO THEN
THEY'RE AT A DEFICIT. THEY
DON'T KNOW HOW THEY'RE GOING
TO CONTINUE. AND IT'S REALLY
HARMFUL TO THE BUSINESS SO WHAT
WE DID WAS, AGAIN, WE SAT DOWN
WITH MY COLLEAGUES AND
CONSULTANTS, AND WE REALLY WENT
THROUGH AND FORMULATED WHAT WE
THOUGHT WOULD BE SOME REALLY
BEST PRACTICES FOR TRANSPARENCY.
AND SO THAT'S WHAT REALLY
INFORMED WHY WE MADE THESE
SUGGESTIONS ON THE TRANSPARENCY
OF THOSE FOUR POINTS. WE ALSO
GOT IN TOUCH WITH AT LEAST A
DOZEN STAKEHOLDERS, WHICH WERE
INCLUDED LANDLORDS, INDUSTRY
ORGANIZATIONS, BUSINESS, THE
BIAS AND OTHER STAKEHOLDERS. AND
WE HAD A COUPLE OF REALLY GOOD
SESSIONS WITH THEM. I THOUGHT IT
WAS A GREAT PARTNERSHIP. THEY
CAME IN, GAVE US SOME REALLY
GOOD FEEDBACK. WE WENT BACK AND
RETOOLED SOME OF OUR LANGUAGING,
CAME BACK, DID ANOTHER SESSION
WITH THEM, CAME BACK, DID SOME
ADDITIONAL RETOOLING OF THE
MESSAGING, AND I THINK THAT WE
ARE IN A GOOD SPOT TO MOVE
FORWARD WITH IT AS THIS
LEGISLATION PASSES, WE CONTINUE.
WE REALLY WANT TO WORK WITH
THEM. I THINK WE'VE CREATED THIS
PARTNERSHIP. WE WANT TO WIN, WIN
FOR EVERYBODY. WE WANT ALL
VOICES HEARD.
-- GREAT. THANK YOU. SO NOW I'M
GOING TO GET INTO THE SPECIFICS
OF THE LEGISLATION ITSELF. AND
THE KEY REQUIREMENTS ARE LISTED
ON THE SLIDE. BUT BEFORE I GET
INTO THAT, I JUST WANTED TO NOTE
A FEW THINGS WHICH, YOU KNOW, AS
THE NAME OF THE LEGISLATION
IMPLIES, THE GOAL IS REALLY
AROUND TRANSPARENCY, DISCLOSURE
OF READILY AVAILABLE
INFORMATION. IT'S NOT TO IMPOSE
NEW WARRANTIES OR GUARANTEES.
THEN THERE ARE A COUPLE SECTIONS
OF THE ORDINANCE THAT CLARIFY
THAT, AS IT SAYS THERE, WE ARE
BUILDING OFF OF SMC SIX 104,
WHICH IS THE PERSONAL GUARANTEE
AND SECURITY DEPOSIT LIMIT
LEGISLATION THAT PASSED THROUGH
COUNCIL, I BELIEVE, IN 2023. SO
THE LAST THING I'LL SAY BEFORE
I GET INTO THE REQUIREMENTS IS
THE DEFINITION OF COMMERCIAL
PROPERTY, WHICH THIS ORDINANCE
DOES NOT AMEND, BUT WAS CREATED
FOR THE PERSONAL GUARANTEE AND
SECURITY DEPOSIT LIMIT. DOES
EXEMPT SOME SIGNIFICANT SECTORS
OF COMMERCIAL PROPERTY. SO
RESIDENTIAL AND LODGING RENTALS,
OFFICE SPACE RESEARCH AND
DEVELOPMENT, LAB SPACE AND
MEDICAL PRACTICE CLINICS AND
DISPENSARIES AND FARMING ARE ALL
EXEMPTED FROM THESE
REQUIREMENTS. SO THESE
REQUIREMENTS ARE KIND OF IN
PARALLEL TO SOME OF THE ISSUES
THAT SELWYN OUTLINED. SO THE
ORDINANCE WOULD REQUIRE THE
LANDLORD PROVIDE A COPY OF THE
LEASE AT SIGNING, AND AT LEAST
ONE ADDITIONAL COPY DURING THE
TERM OF THE LEASE. THE SECOND IS
REQUIRING THE MOST RECENT
CERTIFICATE OF OCCUPANCY BE
ATTACHED TO THE LEASE. THAT IS
TYPICALLY READILY AVAILABLE ON A
PUBLIC PORTAL HOSTED BY SDCI.
BUT THE ORDINANCE DOES INCLUDE
SOME CAVEAT LANGUAGE THAT, IN
CASE IT SOMEHOW ISN'T AVAILABLE,
THE LANDLORD ISN'T LIABLE OR
REQUIRED TO PROVIDE IT. THE
EXISTING CONDITIONS OF THE
SPACE. SO THE DEFINITION OF
EXISTING CONDITIONS ARE KIND OF
THE KEY COMPONENTS OF A SPACE.
SO FLOOR, WALL, ROOF, DOORS AND
KEY SYSTEMS LIKE PLUMBING,
ELECTRICAL, HVAC, SPRINKLER AND
SECURITY SYSTEMS. THERE'S A
FORM THAT OED WILL DEVELOP A
-- A MODEL FORM THAT LANDLORDS
CAN PROVIDE AND WILL DO THAT IN
THE RULEMAKING PROCESS. THE
FOURTH IS THE DISCLOSURE OF PAST
AND AN ESTIMATE OF F█UTURE FUTUE
TRIPLE NET EXPENSES FOR THE
PREVIOUS YEAR AND FOR THE FIRST
YEAR OF THE LEASE. AND TRIPLE
NET. AS SOMEONE MENTIONED, ARE
THE CHARGES ABOVE BASE RENT THAT
TYPICALLY INCLUDES COMMON AREA
MAINTENANCE, TAXES, ASSESSMENTS,
INSURANCE, UTILITIES AND
SECURITY. AND SO THERE'S THE
DISCLOSURE OF PAST AND ESTIMATE
OF FUTURE, AND ALSO AN
OPPORTUNITY FOR THE TENANT TO
ACCESS DOCUMENTATION OF THE
ACTUAL COSTS INCURRED, WHICH
LEAD TO THE CHARGES TO THE
TENANT. AND AGAIN, THIS
ORDINANCE DOESN'T REGULATE THE
AMOUNT OF TRIPLE NET. IT'S
REALLY JUST A PROVIDING
DISCLOSURES AROUND HOW THOSE
COSTS ARE INCURRED. FOR
IMPLEMENTATION CONSIDERATIONS.
THE OFFICE OF ECONOMIC
DEVELOPMENT WILL ADMINISTER THIS
NEW SECTION OF THE CODE.
THERE'S AN EFFECTIVE DATE OF
JULY 1st NEXT YEAR, 2027 TO
ALLOW FOR TIME FOR OED TO
DEVELOP RULES, EDUCATION AND
OUTREACH MATERIALS. THE
ENFORCEMENT MECHANISM IS PRIVATE
RIGHT OF ACTION TO PURSUE RELIEF
FOR VIOLATIONS. AND IT'S NOT
EXACTLY ENFORCEMENT. BUT I JUST
WILL NOTE THAT OED INTENDS TO
EDUCATE LANDLORDS, YOU KNOW, IN
THE PROGRAMS THAT WE HAVE WHERE
WE'RE IDENTIFYING THESE ISSUES.
WE WILL PROACTIVELY EDUCATE
LANDLORDS ABOUT THESE NEW
REQUIREMENTS AND FINANCE&
ADMINISTRATIVE SERVICES
ADMINISTERS THE PERSONAL
GUARANTEE AND SECURITY DEPOSIT
LEGISLATION. SO IT'S POSSIBLE
THEY WILL GET MORE CALLS RELATED
TO THIS, ALTHOUGH OED WILL. SO I
JUST WANT TO NOTE THAT WE WILL
COORDINATE WITH FAS AND SDCI ON
THE CERTIFICATE OF OCCUPANCY TO
MAKE SURE ALL THE PROGRAMS ARE
ALIGNED
-- SO THE IMPACT OF THIS
LEGISLATION, WE REALLY ARE JUST
TRYING TO GET THE RIGHT BUSINESS
IN THE RIGHT SPACES. WE WANT,
YOU KNOW, TENANTS TO HAVE GREAT,
YOU KNOW, RELATIONSHIPS WITH
THEIR LANDLORDS AND GOOD
TRANSPARENCY AND COMMUNICATION.
AND THE SAME WITH LANDLORDS AND
PROPERTY MANAGERS. THEY WANT TO
HAVE A GOOD RELATIONSHIP WITH
THEIR TENANTS. WE WANT THEM
ROOTED IN THE COMMUNITY AS LONG
AS THEY CAN BE IN THEIR
NEIGHBORHOODS, THRIVING. AND SO
THAT'S WHAT THIS ALL THIS
LEGISLATION WOULD BE ABOUT. YOU
KNOW, WE WANT TO HAVE WE WANT TO
MAKE SURE THAT THAT, YOU KNOW,
WHEN A TENANT SIGNS THEIR LEASE,
THAT THERE ARE NO KIND OF BIG
UNFORESEEN EXPECTATIONS OF WHAT
THEY ARE UP AGAINST. I MEAN,
THAT HAS PUT BUSINESSES OUT
BEFORE THEY'VE EVEN GOTTEN
STARTED. AND WE REALLY WANT IT
WHEN THEY'RE WALKING INTO A
SPACE, THEY KNOW WHAT THEY'RE
GETTING, THEY KNOW WHAT THEY'RE
UP AGAINST. AND IF THEY CHOOSE
THAT, THEN THAT'S GREAT. OKAY.
IT'S, IT'S THE THINGS THAT
THEY'RE NOT CHOOSING THAT ARE
THE UNEXPECTED THINGS THAT
HAPPEN TO THEM. THAT'S WHY OUR
OFFICE GETS INVOLVED AND DOES
ALL THIS ADVOCACY WORK, YOU
KNOW, AND THE TRANSPARENCY OF
THE TRIPLE NET EXPENSES. I MEAN,
WE WANTED THAT HIGHLIGHTED OFF
THE PAGES IN IN THEIR LEASE
AGREEMENTS. WE WANT THEM TO KNOW
EXACTLY WHAT THEIR COSTS ARE
GOING TO BE, OR PROJECTED COSTS
ARE GOING TO BE. SO EVERYBODY
GOES IN WITH THEIR EYES OPEN AND
THEY KNOW WHAT THEY'RE GETTING.
THERE'S NO, YOU KNOW, TRICKERY
OR ANYTHING THAT THEY FEEL THAT
THEY WOULD HAVE NOT KNOWN IF
THEY WOULD HAVE READ THROUGH OR
SOMEBODY DID. MORE EXPLANATION
IS RIGHT THERE ON THE PAGES.
EVERYBODY IS ON THE SAME PAGE,
AND THEN EVERYBODY, YOU KNOW, IS
MORE SUCCESSFUL
-- SO WITH THAT, I THINK WE ARE
READY FOR QUESTIONS. THAT'S
OKAY. RIGHT BEFORE YOUR OR DID
YOU WANT TO GO INTO YOUR
ANALYSIS? AND THEN WE WILL TAKE
QUESTIONS.
-- WHY DON'T.
-- WE GO TO THE CENTRAL STAFF
ANALYSIS NEXT?
-- THERE. I SEE.
AS JASMINE IS PULLING THIS UP.
GOOD MORNING.
-- HAPPY FRIDAY. MY NAME IS ED
WITH YOUR CENTRAL STAFF. I WANT
TO THANK OUR COLLEAGUES FOR
THEIR VERY THOROUGH
PRESENTATION. MAKES MY JOB A
LITTLE BIT EASIER BECAUSE I CAN
SKIP OVER SOME SLIDE AND GET
RIGHT INTO THE POLICY
CONSIDERATIONS PIECE. WE HAVE.
WE HAVE IDENTIFIED THREE POLICY
CONSIDERATIONS AND ONE
CONTEXTUAL. AND THEN WE'LL GO
INTO SOME NEXT STEPS AS WE AS WE
CONSIDER THIS LEGISLATION. SO.
STARTING WITH THE THE FIRST
POLICY CONSIDERATION AS
DESCRIBED IN THE MEMO AND AS OUR
COLLEAGUES HAVE POINTED OUT, THE
PROVISIONS IN THIS PROPOSED
LEGISLATION ARE ENFORCEABLE ONLY
THROUGH PRIVATE RIGHT OF ACTION
AND IN THIS CASE, LIMITED TO
INDIVIDUALS WHO HAVE SUFFERED
FINANCIAL INJURY AND DOES NOT
ALLOW FOR CIVIL PENALTIES.
HOWEVER, SOME OF THE
REQUIREMENTS IN THIS BILL LIKELY
WOULD RESULT IN DIRECT FINANCIAL
INJURY FOR TENANTS. SO THEN
THERE'S REALLY NO ENFORCEMENT
MECHANISM AND ALSO TENANTS THAT
MAY SUFFER FINANCIAL INJURY AS A
RESULT OF A VIOLATION WOULD NEED
TO HAVE FINANCIAL AND CAPACITY
RESOURCES TO PURSUE LITIGATION
POSSIBLE MITIGATION STRATEGY. IF
THE COMMITTEE HAS CONCERNS
AROUND COMPLIANCE INCENTIVES, IS
TO STRENGTHEN THE PRIVATE RIGHT
OF ACTION PROVISIONS OR
INCORPORATE AGENCY ENFORCEMENT
THAT ALREADY EXISTS FOR
EXCESSIVE SECURITY DEPOSITS OR
GUARANTEE REQUIREMENTS.
PROVISIONS OF THIS CHAPTER. THIS
WORK WOULD MOST LIKELY FALL ON
FAS CONSUMER PROTECTION DIVISION
AND WOULD HAVE FISCAL IMPACT,
BUT THOSE HAVE NOT YET BEEN
CALCULATED OR FLESHED OUT FULLY.
SO MOVING ON TO THE SECOND
POLICY CONSIDERATION, THIS BILL
REQUIRES COMMERCIAL LESSERS TO
PROVIDE SEVERAL FORMS OF
DOCUMENTATION TO THEIR TENANTS.
AS POINTED OUT EARLIER,
INCLUDING COPIES OF LEASES,
CERTIFICATES OF OCCUPANCY WHEN
AVAILABLE, EXISTING CONDITIONS,
DISCLOSURE FORMS, AND ANNUAL
STATEMENTS OF TRIPLE NET
EXPENSES. MANY LANDLORDS ALREADY
FOLLOW THESE BEST INDUSTRY
PRACTICES. HOWEVER, SMALLER
PROPERTY OWNERS OR THOSE WITH
LIMITED ADMINISTRATIVE CAPACITY
MAY FIND THESE NEW REQUIREMENTS
A LITTLE BIT BURDENSOME AND
CHALLENGING TO IMPLEMENT. SO IF
THE COMMITTEE HAS CONCERNS ABOUT
POTENTIAL ADMINISTRATIVE
BURDENS, YOU MAY WISH TO
CONSIDER ADDITIONAL CITY
SUPPORT, LIKE PROVIDING
STANDARDIZED TEMPLATES,
TECHNICAL ASSISTANCE OR PHASED
IMPLEMENTATION TIMELINE THAT
WOULD HELP LESSEN LESSERS MEET
THE NEW REQUIREMENTS WHILE STILL
PRESERVING THE TRANSPARENCY
BENEFITS THAT THIS LEGISLATION
IS DESIGNED TO PROVIDE. AND THE
THIRD RECORDS COMPLIANCE POLICY
CONSIDERATIONS. SO THIS BILL
REQUIRES LESSERS TO PROVIDE ALL
AFOREMENTIONED DOCUMENTS, BUT
THERE'S NO REQUIREMENT TO
RETAIN THOSE RECORDS, WHICH
COULD MAKE VERIFYING COMPLIANCE
MORE DIFFICULT. SO ANOTHER
POLICY CONSIDERATION IS TO ADD A
RECORDS RETENTION REQUIREMENT,
WHICH IS CONSIDERED A BEST
PRACTICE IN REGULATORY DRAFTING.
AND THE GOAL WOULD BE TO
STREAMLINE ENFORCEMENT AND
REDUCE DISPUTES REGARDING
COMPLIANCE. WHILE THIS
POTENTIALLY ADDS A LITTLE MORE
ADMINISTRATIVE BURDEN FOR SOME
LESSORS, ENSURING ALL PARTIES
HAVE ACCESS TO CONSISTENT,
VERIFIABLE DOCUMENTS COULD
OUTWEIGH THOSE CONCERNS. SO NOW,
GOING INTO OUR CONTEXTUAL POLICY
CONSIDERATIONS, CERTIFICATE OF
OCCUPANCY OFTEN PROVIDE BROAD
AND LIMITED OCCUPANCY
INFORMATION AND MAY NOT FULLY
REFLECT ALL ACTIVITIES UNDER THE
LAND USE CODE, WITH SOME
BUILDINGS THAT MAY NOT HAVE ONE
ON RECORD ALTOGETHER. AS WE
MENTIONED. ON THE OTHER HAND,
PERMITTED USE DISCLOSURES MORE
CLEARLY REFLECT WHAT BUSINESS
ACTIVITIES ARE ALLOWED IN A
PARTICULAR SPACE AND COULD
PARTICULARLY BE HELPFUL FOR
BUSINESSES THAT MAY STRUGGLE TO
INTERPRET THEM. THE THE COMPLEX
CODE REQUIREMENTS, REDUCING THE
UNEXPECTED NEEDS FOR ADDITIONAL
PROVEN APPROVALS OR PERMITS.
AFTER SIGNING A LEASE. HOWEVER,
UNDERSTANDING A SPACES PERMITTED
USE IS GENERALLY MORE COMPLEX AS
CURRENTLY ANY BUILDING OWNER OR
PROSPECTIVE TENANT COULD CALL
SDCI TO LOOK UP PERMITTED USE BY
CRAWFORD. REFERENCES VARIOUS
PROVISIONS OF THE CODE THAT
WOULD APPLY TO A PARTICULAR
BUILDING, SUCH AS ZONING CODE,
PROVISIONS, BUILDING CODE
SECTIONS, HISTORICAL PERMITS AND
APPROVALS, AND OTHER USE
SPECIFIC REGULATIONS THAT MAY
APPLY TO THE BUILDING OR THE
STRUCTURE. AND THIS IS MORE OF A
LABOR INTENSIVE THAN PROVIDING
DELAYED A CERTIFICATE OF
OCCUPANCY THAT'S ALREADY ON
FILE. SO OUR UNDERSTANDING IS
THAT ALWAYS EDDIE AND SDCI PLAN
TO EXPLORE WAYS TO STREAMLINE
THIS PROCESS AND EXPAND
TECHNICAL ASSISTANCE. SO THE
COMMITTEE MAY WANT TO RECEIVE A
STATUS UPDATE AFTER
IMPLEMENTATION OF THE
LEGISLATION. AND JUST REAL
QUICKLY IN TERMS OF NEXT STEPS
AND THE UPCOMING SCHEDULE FOR
COUNCIL ONE, TWO, ONE, TWO,
SEVEN, FIVE. SEPTEMBER 18th AT
930. WHAT IS THE NEXT DISCUSSION
AND POSSIBLE VOTE ON AMENDMENTS
AND FINAL SELECT COMMITTEE? VOTE
ON THE BILL AND IF ANY
COUNCILMEMBERS ARE INTERESTED IN
PURSUING AMENDMENTS, PLEASE
CONTACT CENTRAL STAFF. JASMINE
AND AYE. NO LATER THAN NOON ON
SEPTEMBER 9th. BUT PLEASE
CONTACT AS SOON AS POSSIBLE, AND
I KNOW THERE'S RACES COMING UP,
SO THAT CONCLUDES OUR
PRESENTATION. SO OPEN A
QUESTIONS.
-- THANK YOU.
-- FOR THAT OVERVIEW. YES, THIS
IS OUR LAST COMMITTEE BEFORE
RECESS. SO WE ARE STANDING IN
THE WAY OF FOLKS STARTING THEIR
RECESS. SO WITH THAT OPENING UP
TO MY COLLEAGUES, ANY QUESTIONS
ON ALL THE MATERIAL THAT WAS
PRESENTED FROM THE PRESENTATION
FROM OED TO THE CENTRAL STAFF
PRESENTATION SEEING A HAND FROM
VICE CHAIR FOSTER.
-- THANK YOU SO MUCH, CHAIR
RINCK. AND JUST MY APPRECIATION,
AS ALWAYS, TO THE STAFF AND TEAM
AT OED FOR ALL YOUR HARD WORK
AND FOR THE CENTRAL STAFF AS
WELL. REALLY APPRECIATE ALL THAT
WENT INTO THIS WITH YOUR
OUTREACH AND COMMUNICATION AND
RELATIONSHIPS WITH SMALL
BUSINESSES. I WANT TO ASK A
COUPLE OF CLARIFYING QUESTIONS
AROUND THE PERMITTED USE AND
CERTIFICATE OF OCCUPANCY, JUST
TO MAKE SURE I UNDERSTAND THAT.
I REALLY APPRECIATE YOU ENDING
ON THAT NOTE. SO AS WRITTEN,
THIS POLICY, THIS BILL WOULD
REQUIRE THE DISCLOSURE OF
CERTIFICATE OF OCCUPANCY, BUT
NOT OF PERMITTED USE. IS THAT
CORRECT?
-- YEAH, THAT'S RIGHT.
-- OKAY. YEAH. I KNOW YOU ALL
ARE NODDING YOUR HEADS, BUT
YOU'VE GOT TO. SO I THINK
THAT'S HELPFUL. AND I JUST WANT
TO MAKE SURE I UNDERSTAND
BECAUSE I WAS HEARING SOME OF
THE CONCERN AROUND DISCLOSURE
FOR BUSINESSES, IF THEY'RE
COMING INTO A SPACE AND THEY
BELIEVE THAT THAT SPACE COULD BE
USED. YOU GAVE THAT EXAMPLE OF
AS A SALON. AND SO WHAT IT SEEMS
LIKE IS THIS DOES A SORT OF A
STEP FORWARD IN THAT
TRANSPARENCY, BUT THERE MAY
STILL BE A GAP BETWEEN THE
CERTIFICATE OF OCCUPANCY AND THE
PERMITTED USE. AND I JUST WANT
TO UNDERSTAND A LITTLE BIT MORE
ABOUT THE DECISION TO LAND ON
CERTIFICATE OF OCCUPANCY,
WHETHER IT WAS JUST BASED ON
CAPACITY AND THE THE CHALLENGE
THAT IT MIGHT PROVIDE FOR FOR A
LANDLORD, IF THEY ARE GIVING
THAT TRANSPARENCY TO ASK THEM TO
DO THE PERMITTED USE. JUST WANT
TO UNDERSTAND THAT A LITTLE BIT
MORE.
-- YEAH, I CAN START. AND THEN
ISAAC, FEEL FREE TO ADD ON AND
SO ON AS WELL. SO I THINK PART
OF THAT DECISION IS SOME OF WHAT
CHAIR CHAIR RINCK NOTED IN HER
OPENING COMMENTS IS THAT THE
BUSINESS OWNER MAY KNOW BEST
KIND OF ALL OF THE THINGS THAT
THEY'RE EXPECTING TO DO AT, AT
THEIR PLACE OF BUSINESS. AND SO
LIKE AT THE SALON, IF THE SALON
ALSO WANTS TO LIKE HAVE A CAFE
OR LIKE A LITTLE COFFEE CART IN
THE SALON AS WELL, THAT IS
DIFFERENT THAN JUST A SPACE THAT
IS PERMITTED AS A SALON. AND SO
I THINK ONE OF THE THINGS WE
WERE TRYING TO BALANCE IN THIS
CAME UP MULTIPLE TIMES IN THE
STAKEHOLDER CONVERSATIONS, IS
WHAT'S KIND OF THE
RESPONSIBILITY OF THE LANDLORD
OR PROPERTY OWNER TO KIND OF
LIKE INTUIT. AND THEN ESPECIALLY
FOR THESE MORE SPECIFIC BUSINESS
USES, KIND OF RUN TO GROUND WHAT
THAT SPACE IS PERMITTED FOR
COMPARED TO THE BUSINESS OWNER,
PARTICULARLY WHEN THAT BUSINESS
OWNER MIGHT HAVE KIND OF LIKE AN
EVOLUTION OR A DIFFERENT
BUSINESS MODEL THAN WHAT WAS IN
THAT SPACE BEFORE.
-- YEAH, I THINK BUILDING OFF OF
THAT IS JUST LANDLORDS WERE
CONCERNED ABOUT HAVING BEING
LIABLE FOR BOTH UNDERSTANDING
CITY REGULATIONS AND THE
BUSINESS OWNER'S INTENT. AND SO
THE CERTIFICATE OF OCCUPANCY WAS
KIND OF A CLEANER WAY TO PROVIDE
READILY AVAILABLE INFORMATION.
AND I THINK THAT'S WHERE.
-- THANK YOU. I THINK THAT'S
HELPFUL. SO JUST SO YOU KNOW, TO
SAY IT DIFFERENTLY, IT'S, YOU
KNOW, YOU WANT TO LEAVE THAT
FLEXIBILITY BECAUSE A BUSINESS
OWNER MAY BE COMING IN WITH AN
INTENT THAT IS DIFFERENT THAN
THE EXISTED PERMITTED USE. AND
SO WHAT I THINK I'M HEARING IS
IT FELT LIKE GOING, GOING TO THE
EXTENT OF HAVING THEM DISCLOSE
THE PERMITTED USE, MAYBE SORT OF
ADDED ADDITIONAL WORK, GIVEN
THAT A BUSINESS OWNER MAY WANT
TO DEPART FROM THAT CURRENT
PERMITTED USE BASED ON THEIR
VISION FOR THE SPACE.
-- EXACTLY. AND THAT IT'S PART
OF THE BUSINESS OWNER'S
RESPONSIBILITY TO KIND OF DO
THAT HOMEWORK AND MAKE SURE IF
THEY ARE THINKING ABOUT THAT,
THAT DIFFERENT USE.
-- THAT'S REALLY HELPFUL. THANK
YOU. YOU'RE WELCOME. AND THEN
MY SECOND, WELL, I DON'T KNOW IF
THIS COUNTS AS A SECOND OR A
FOURTH QUESTION, BUT IS JUST I
WOULD LOVE TO HEAR A LITTLE BIT
MORE ABOUT THE PLANNED WORK
BETWEEN OPCD AND SDCI. THAT WAS
MENTIONED TOWARDS THE END OF THE
PRESENTATION
-- YEAH. SO AS I MENTIONED,
THERE IS A PORTAL WHERE YOU CAN
LOOK UP THE CERTIFICATE OF
OCCUPANCY. AND THERE'S ALSO A
KEY STAFF MEMBER, PETER
FURMINGER AT SDCI, WHO HELPS
SMALL BUSINESS OWNERS NAVIGATE
SDCI PROCESS. SO I THINK WE
WOULD COORDINATE WITH THE SDCI
LEADERSHIP AND POLICY TEAM JUST
TO MAKE SURE THEY UNDERSTAND
THAT THEY MAY BE GETTING MORE
REQUESTS IF THIS COMES THROUGH.
IF THERE ARE LANDLORDS WHO
AREN'T FAMILIAR WITH THAT
SYSTEM OR KNOW HOW TO LOOK UP
THE CERTIFICATE OF OCCUPANCY FOR
THEIR SPACE, THAT THEY MIGHT GET
A LITTLE BIT MORE CALLS. BUT WE,
THE SDCI, SAID THAT THEY
ANTICIPATE ABSORBING THAT IN
THEIR COSTS AND THAT JUST WE
WANT TO MAKE SURE THAT THE RIGHT
WEB PAGES ARE CROSS LINKED TO
EACH OTHER. SO IT'S EASIER FOR
LANDLORDS TO NAVIGATE.
-- GOT IT. THANK YOU. THANK YOU.
CHAIR.
-- THANK YOU FOR THOSE
QUESTIONS, VICE CHAIR FOSTER
COLLEAGUES, I'M NOT SEEING ANY
ADDITIONAL QUESTIONS. AND SO AT
THIS POINT, AGAIN, WE'RE NOT
TAKING ACTION ON THIS TODAY, BUT
RATHER THERE WILL BE AN
OPPORTUNITY. THERE'S AN
AMENDMENT DEADLINE. I BELIEVE
AMENDMENT CONCEPTS ARE DUE
WEDNESDAY AT NOON AT THE THE 9th
OF SEPTEMBER. FABULOUS. THANK
YOU SO MUCH. AND HUGE THANK YOU
TO THE TEAM FOR YOUR CONTINUED
WORK AND ENGAGEMENT IN SHAPING
THIS AND COMING BEFORE COMMITTEE
TODAY. THANK YOU SO MUCH. ALL
RIGHT, COLLEAGUES, WE HAVE
REACHED THE END OF TODAY'S VERY
BUSY AGENDA. IS THERE ANY
FURTHER BUSINESS TO COME BEFORE
THE COMMITTEE BEFORE WE ADJOURN
SEEING NONE, THE NEXT HUMAN
SERVICES, LABOR AND ECONOMIC
DEVELOPMENT COMMITTEE IS
SCHEDULED FOR SEPTEMBER 11th,
2026 AT 9:30 A.M.. HEARING NO
FURTHER BUSINESS, WE ARE
ADJOURNED. IT I