Longview City Council (Mar 26, 2026): Tax and Utility Code Changes Adopted; TIP Amended; Water Policy and Animal Shelter Agreement Approved

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COUNCIL STRATEGIC INITIATIVE ADDRESSED: All CITY ATTORNEY REVIEW: Yes SUMMARY STATEMENT: In 2003, the Washington State legislature adopted Engrossed House Bill 2030, which required the 54 cities with local business and occupation (B&O) taxes to adopt a city B&O tax model ordinance to provide for municipal business and occupation tax uniformity and fairness. This legislation is codified at Chapter 35.102 RCW. The model was developed in compliance with the legislation by a workgroup of city finance directors and tax managers in conjunction with AWC, and was updated in 2007, 2012, 2019, and 2023. The model includes mandatory provisions that must be adopted for compliance with state law, as well as discretionary provisions that are subject to the local agency’s review and adoption. [1] During the 2025 legislative session, the legislature passed Engrossed Substitute Senate Bill 5814, which amended Chapter 82.04 RCW to require that certain services now be taxed when sold, including but not limited to information technology training services and technical support, custom website development services, custom software and customization of prewritten computer software, certain temporary staffing services, and certain advertising services. Following passage of SB 5814, the Washington Department of Revenue conducted outreach on implementation during the summer of 2025 and issued interim guidance to assist agencies with implementation. Additionally, the AWC workgroup developed an update to the B&O tax model ordinance to incorporate changes to the definition of sales at retail and sales at wholesale for consistency with the new law. The City’s regulations for B&O taxes are codified at Chapter 5.05 of the Longview Municipal Code. Staff have recommended amendments to Chapter 5.05 for consistency with the B&O tax model ordinance, as updated. These amendments add the following services as taxable services due and owing where the services are provided: [1] Notably, in the absence of a legal or constitutional prohibition, municipalities have the power to define taxation categories as they see fit in order to respond to the unique concerns and responsibilities of local government. See Enterprise Leasing v. City of Tacoma , 139 Wn.2d 546 (1999). The City is permitted, consistent with the adopted legislation, to grandfather existing contracts for services in place as of SB 5814’s effective date of October 1, 2025. These services subject to existing contracts can continue to use the underlying tax treatment until March 31, 2026, unless substantially amended. FINANCIAL SUMMARY: The financial impact of this ordinance is expected to be minimal but may result in a modest increase in Business and Occupation (B&O) tax revenue as certain services are now classified as taxable under state law. This ordinance does not establish a new tax or increase existing tax rates but updates the City’s municipal code to remain consistent with the state-required model B&O ordinance and recent legislative changes. Any additional revenue generated will be deposited into the City’s General Fund. STAFF CONTACT: Charlotte Archer, Interim City Attorney Jennifer Wills, City Manager Chris Collins, Asst. City Manager | attachments=2 | reports=1

COUNCIL STRATEGIC INITIATIVE ADDRESSED: All CITY ATTORNEY REVIEW: Yes SUMMARY STATEMENT: The City of Longview owns and operates municipal water and sewer utility systems that provide service to customers both within and outside the City limits. Under current code, the City utility tax is applied only to customers located within the City limits. Customers located outside the City limits who receive the same municipal utility services are not currently subject to the utility tax. The City maintains and operates the water distribution and sewer collection systems that serve all connected customers, including infrastructure such as pipelines, pump stations, reservoirs, and treatment facilities located both inside and outside the City limits. In addition, municipal utilities rely on a variety of general governmental support services including administration, finance, customer service, emergency management coordination, public safety support, and regulatory oversight. Customers located outside the City limits currently pay a premium utility rate for water and sewer service, which reflects the higher costs associated with extending and maintaining utility infrastructure beyond the City’s corporate boundaries. However, these customers are not currently subject to the City’s utility tax despite receiving the same utility services and benefiting from City infrastructure and services. In many cases, customers located outside the City limits also utilize City amenities and infrastructure such as parks, streets, recreational facilities, and other public services when visiting or conducting business within the City. These services are supported in part by City revenues, including utility tax revenues paid by customers located within the City limits. This ordinance amends Chapter 5.06 of the Longview Municipal Code to apply the existing utility tax uniformly to all customers receiving City water and sewer services regardless of location. Applying the tax uniformly promotes fairness and equity among similarly situated users of the City’s utility systems and helps ensure that all customers receiving City utility services contribute toward the governmental services and infrastructure that support those utilities. FINANCIAL SUMMARY: Adoption of this ordinance is projected to generate approximately $1.0 million to $1.1 million annually in additional General Fund revenue. STAFF CONTACT: Charlotte Archer, Interim City Attorney Jennifer Wills, City Manager Chris Collins, Asst. City Manager | attachments=2 | reports=1

COUNCIL INITIATIVE ADDRESSED: Strengthen economic conditions and create new opportunities SUMMARY STATEMENT: The proposed update to LMC is a procedural update related to the scheduling of Board of Adjustment meetings. The current language requires that a Board of Adjustment meeting be held each month, even when there are no pending application(s) or item(s) to review. The proposed code update provides the ability for the chairman to cancel regular meetings if there are no items pending before the Board. The updated language does not grant any additional authority to the chair to cancel scheduled hearings or meetings with items on the agenda. The proposed code updates do not change public notice requirements or other timeframes associated with application review or processing. The setting of hearing dates is unaffected as well. STAFF CONTACT: Nick Little, Community Development Director Nick.little@ci.longview.wa.us | attachments=3 | reports=1

COUNCIL STRATEGIC INITIATIVE ADDRESSED: Improve transportation systems CITY ATTORNEY REVIEW: N/A SUMMARY STATEMENT: Each year, as required by state law, the City updates and adopts a Six-Year Transportation Improvement Program (TIP). The TIP is a priority listing of federally funded or proposed transportation-related projects within the City. The TIP identifies the year and the funding sources for the various projects, as well as other basic information on the projects. In order to receive federal or state transportation funding, a project must appear on the City’s adopted TIP. However, the TIP may be amended by the City Council at any time to add or delete projects or change funding sources and amounts, following a public hearing on the proposed amendment. Additionally, federal law requires transit agencies receiving Federal Transit Administration (FTA) funding to prepare a Program of Projects (POP) identifying the projects to be funded with FTA funding, and to conduct a public hearing and outreach process prior to adopting the POP. The TIP includes FTA funded projects and meets the requirements of the POP. The required public hearing calls for receiving public testimony regarding amending the 2026-2031 TIP/POP. This amendment specifically addresses modifying the Columbia Heights Road project and a number of Transit projects that were approved in the 2026-2031 TIP/POP. Columbia Heights Road project was updated to reflect secured funding from a federal earmark. Numerous Transit projects modified to reflect Federal Transit funding and administrative edits. STAFF CONTACT: Chris Collins, Public Works Director | attachments=3 | reports=1

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COUNCIL INITIATIVE ADDRESSED: Continue effective financial management CITY ATTORNEY REVIEW: Yes SUMMARY STATEMENT: The City periodically receives requests from customers who experience unusually high water bills due to unexpected leaks occurring on private plumbing or service lines located after the water meter. Historically, the City addressed these situations by reducing the leak-related water usage by fifty percent. While this provided some relief, the remaining charges could still result in very large bills for customers. The proposed Water Utility Leak Adjustment Policy establishes a standardized process for reviewing and adjusting water utility bills in situations where customers experience a sudden and verified leak. The policy outlines eligibility criteria, documentation requirements, and the methodology used to calculate adjustments. Under the policy, the customer remains responsible for normal water consumption and base service charges. Water usage associated with the verified leak will be billed at the City’s wholesale water rate rather than the retail utility rate. The policy limits adjustments to two billing cycles per incident and allows only one adjustment per customer account within a twelve-month period. The policy is intended to provide reasonable financial relief to customers while ensuring the City continues to recover the cost of water service and maintain the financial stability of the utility system. The proposed policy was reviewed by the Public Works Subcommittee , which recommended adoption. Purpose: The purpose of Resolution No. 2610 is to formally adopt the Water Utility Leak Adjustment Policy and authorize the Finance Department and Public Works Department to administer the policy. FISCAL IMPACT: The policy may reduce revenue associated with leak-related consumption in qualifying cases. However, the City will continue to recover the wholesale cost of the water provided as well as base service charges. Staff Contact: Chris Collins, Public Works Director/Asst. City Manager | attachments=2 | reports=1

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DATE: MARCH 26, 2026 COUNCIL STRATEGIC INITIATIVE ADDRESSED: Improve streets and roads Enhance public safety & emergency response Preserve and enhance neighborhoods Improve transportation systems Address quality of place issues Strengthen economic conditions & create new opportunities Continue effective financial management CITY ATTORNEY REVIEW: N/A SUMMARY STATEMENT: In March 2026, the Longview City Council participated in a Council Summit to reflect on 2025, discuss current challenges, and identify priorities for the year ahead. Councilmembers completed pre-work and engaged in facilitated discussions, resulting in strong alignment around key focus areas, including community safety, fiscal responsibility, and infrastructure investment. At the same time, the City has advanced an updated Strategic Initiatives framework (2026–2031), which establishes long-term direction grounded in community input, organizational values, and regional priorities. The attached 2026 City Council Goals and Priorities document reflects Council’s direction and serves as the annual expression of priorities within the broader Strategic Initiatives framework. The Strategic Initiatives define the City’s long-term direction, while the 2026 Council Goals establish near-term focus and measurable outcomes. Together, they provide a clear structure: Strategic Initiatives align long-term vision and department efforts Council Goals define what success looks like in 2026 Staff work plans translate both into action This approach ensures that departmental work is aligned with Council priorities, resources are focused, and progress can be tracked in a clear and transparent way. The document: Identifies three primary goals for focused Council attention Includes supporting priorities for ongoing work Establishes a Council narrative to guide communication The goals are intentionally high-level to reflect Council’s role in setting direction, with implementation led by the City Manager and staff. Adoption of these goals will align Council priorities, the Strategic Initiatives, and the organization’s work program for 2026. RECOMMENDED ACTION: Motion to adopt Resolution No. 2613 STAFF CONTACT: Jennifer Wills, City Manager | attachments=4 | reports=1

Based upon the authentication and certification of claims and demands against the city, prepared and signed by the City’s auditing officer, and in full reliance thereon, it is moved and seconded as shown in the minutes of this meeting that the following vouchers/warrants are approved for payment: FIRST HALF MARCH 2026 ACCOUNTS PAYABLE: $1,731,208.63 FIRST HALF MARCH 2026 PAYROLL: $21,203.62, checks $1,126,852.94, direct deposits $846,550.49, wire transfers $1,994,607.05 Total STAFF CONTACT: Lindy Kennedy, Accountant Sara Rios, Payroll Specialist | reports=1

COUNCIL INITIATIVE ADDRESSED: Provide sustainable water quality & environmental infrastructure CITY ATTORNEY REVIEW: N/A SUMMARY STATEMENT: The Mt Solo Reservoir Fill Line project has been completed in accordance with the plans and specifications under Contract No. 25-0213-W entered into between the City of Longview and Dewitt Construction Inc. The City Council must accept the project as complete before final contract closeout can be accomplished. STAFF CONTACT: Levi Lindeman, Project Engineer | reports=1

DATE: March 26, 2026 COUNCIL STRATEGIC INITIATIVE ADDRESSED: Continue effective financial management CITY ATTORNEY REVIEW: N/A SUMMARY STATEMENT: The Council Chambers audio/visual system is beyond its useful life and is no longer providing a reliable or acceptable meeting experience for Council, staff, in-person attendees, or residents watching KLTV recordings. The City receives recurring complaints regarding poor audio quality and limited visibility of presentations, and staff have had to troubleshoot the system during live meetings, creating avoidable interruptions and disruption to meeting flow. Replacement of this system has been anticipated in prior budget planning and was originally expected around the seven-year mark, but the project was deferred due to budget reductions. The system has now reached end-of-life from both a support and performance standpoint. Replacement parts are no longer readily available, and the manufacturer has already adjusted programming as much as possible to extend serviceability. The manufacturer has indicated there is no additional tuning or modification available to materially improve the current system. Continued deferral increases the risk of a meeting-impacting failure and a more costly emergency replacement. The proposed project modernizes the Chambers with clearer audio, improved presentation visibility, better hybrid meeting support, upgraded accessibility features, and simpler room control. Desco AV holds a Washington State Department of Enterprise Services statewide contract (Contract # 00224), providing a compliant procurement path for the City. Project Need and Background The existing Council Chambers system is more than nine years old and no longer meets the City's operational needs for modern public meetings. It was designed for an earlier era of room presentation and has become increasingly difficult to support as hardware ages, parts availability declines, and compatibility with newer technologies becomes more limited. This is not only a quality issue; it is also a continuity-of-governance issue. Council Chambers is a governance-critical space used for public meetings, presentations, and hybrid participation. When audio is difficult to understand or presentations cannot be seen clearly, the result is a degraded public experience and reduced confidence in the City's ability to support transparent, accessible meetings. Summary of Proposed Upgrade The project replaces and modernizes core audio, video, control, and accessibility components in the Council Chambers. Key improvements include a new larger-format projector screen, four 85-inch professional displays suspended for improved sightlines, upgraded digital audio processing, new wireless gooseneck microphones for the dais and staff positions, a handheld microphone for general use, localized dais speakers with individual volume control, and an ADA-compliant assistive listening system with Bluetooth connectivity. The new design also includes two dedicated touchscreen controllers (one for the Mayor and one for the Clerk) to improve meeting operations and reduce dependence on a single control point. The system is designed to better support in-person meetings, hybrid/Zoom participation, streaming, recording, and presentation display in a way that is more reliable, easier to operate, and more maintainable over time. Primary Benefits • Clearer speech intelligibility for Council, the audience, and remote viewers • Improved visibility of presentations and remote participants from multiple seating areas • Reduced live-meeting troubleshooting and fewer meeting interruptions • Modern accessibility support through ADA-compliant assistive listening • Improved hybrid meeting, streaming, and recording performance • More reliable and maintainable system architecture with current vendor support Fiscal and Procurement Considerations Desco AV's current quote for the Council Chambers A/V upgrade is $133,270.45, inclusive of equipment, labor, travel, and sales tax. We also ask to include $25,000 in contingency costs for any electrical work required. Desco AV is a Washington State Department of Enterprise Services statewide contract holder under Contract # 00224, which provides the City with an established cooperative purchasing vehicle for this project. Approving the project this year would address a known and deferred capital need before a failure forces a time-sensitive emergency replacement under less favorable conditions. RECOMMENDED ACTION: Move to authorize the Council Chambers audio/visual upgrade project and approve procurement and installation through Desco AV via Washington State Department of Enterprise Services Contract # 00224. STAFF CONTACT: Mike Sullivan, Information Technology Director | attachments=3 | reports=1