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2012.08.21 CC Agenda Packet              AGENDA EDMONDS CITY COUNCIL Council Chambers ~ Public Safety Complex 250 5th Avenue North, Edmonds AUGUST 21, 2012             6:00 P.M. - CALL TO ORDER / FLAG SALUTE   1.(60 Minutes)Convene in executive session regarding potential litigation per RCW 42.30.110(1)(i)(iii).   7:00 P.M. - RECONVENE IN OPEN SESSION / FLAG SALUTE   2.(15 Minutes)Meet with candidate for appointment to the Planning Board.   3.(5 Minutes)Approval of Agenda   4.(5 Minutes)Approval of Consent Agenda Items   A.Roll Call   B.AM-5055 Approval of City Council Meeting Minutes of August 14, 2012.   C.AM-5076 Approval of payroll direct deposit & checks #51593 through #51625 for $475,737.42 and benefit checks #51626 through #51634 & wire payments for $124,333.88 for the period August 1, 2012 through August 15, 2012.   D.AM-5074 Approval of claim checks #133691 through #133823 dated August 16, 2013 for $362,327.33 and replacement checks #133763 for $3,259.01 and #133803 for $952.90.   E.AM-5052 Interlocal Cooperation Agreement for Public Safety Boat Maintenance and Repair Services between the City of Edmonds and Snohomish County Fire District #1.   F.(5 Minutes) AM-5080 Authorization to Sell One (1) 2002 Dodge Stratus.   G.(5 Minutes) AM-5079 Authorization to Sell Unit 047-STR (1973 Asphalt Tack Wagon)   Packet Page 1 of 393 H.(5 Minutes) AM-5078 Authorization to contract with James G. Murphy Auctioneers to sell surplus city vehicles.   I.AM-5041 Banking Request for Proposals   J.AM-5045 2011 Financial Statement Audit Report - State Auditor's Office   K.AM-5054 Authorization for Mayor to sign Supplemental Agreement #2 with David Evans & Associates for the 76th Ave. W @ 212th St. SW Intersection Improvement Project.   L.AM-5058 Approval of Right-of-Way, Administrative Settlement and Appraisal Waiver Procedures on Federal-Aid Projects.   M.AM-5062 Report on final construction costs for the Lift Station 2 Replacement Project and acceptance of project.   N.AM-5077 Authorization for Mayor to sign Interlocal Agreement with Olympic View Water and Sewer District (OVWSD) to install sewerline and associated appurtenances as part of the 224th St. SW Sewer Replacement Project.   O.AM-5066 Report on bids opened July 31, 2012 for the A-Basin Upgrade Project and award of contract to Moon Construction Co. Inc. ($174,530.96 including sales tax).   P.AM-5065 Report on bids opened August 2, 2012 for the Building Roof Replacement Project and award of contract to Kruger Sheet Metal ($344,925 including sales tax).   Q.AM-5067 Authorization to award a construction contract to Northshore Paving, Inc. in the amount of $140,251.23 for the 2012 Waterline Overlay Project.   R.AM-5069 Authorization for Mayor to approve acceptance and recording of Public Pedestrian Access Easements.   S.AM-5070 Authorization for Mayor to sign Supplemental Agreement No. 2 with Parametrix, Inc. for the Main St. Decorative Lighting and Sidewalk Enhancements Project.   T.AM-5071 Report on bids opened August 9, 2012 for the Lift Station Rehabilitation Project and award of contract to Razz Construction in the amount of $3,872,095.20.   U.AM-5073 Authorization to approve easements for the Sewer Lift Station Rehabilitation Project.   V.AM-5039 Renew Domestic Violence Coordinator Position with the City of Mill Creek.   W.AM-5048 Confirmation of the Mayor's appointment of Ian Duncan to the Planning Board.   5.(30 Minutes) AM-5044 Insurance Briefing from Washington Cities Insurance Authority.   6.Audience Comments (3-minute limit per person)* *Regarding matters not listed as Public Hearing or Closed Record Review   7.(15 Minutes) AM-5075 Update on Budget Forcast   8.(10 Minutes)June 2012 Quarterly Financial Report Packet Page 2 of 393 8.(10 Minutes) AM-5043 June 2012 Quarterly Financial Report   9.(10 Minutes) AM-5042 Ordinance - 2012 August Budget Amendment   10.(5 Minutes) AM-5046 Savings from Refinancing of GO Bonds   11.(45 Minutes) AM-5057 Discussion regarding retail only zone in BD1.   12.(45 Minutes) AM-5061 Discussion regarding step-backs.   13.(15 Minutes) AM-5056 Report on City Council Committee Meetings of August 14, 2012.   14.(5 Minutes)Mayor's Comments   15.(15 Minutes)City Council Comments   ADJOURN   Packet Page 3 of 393    AM-5055     4. B.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted By:Sandy Chase Department:City Clerk's Office Review Committee: Committee Action:  Type: Action  Information Subject Title Approval of City Council Meeting Minutes of August 14, 2012. Recommendation Review and approval. Previous Council Action N/A Narrative Attached is a copy of the draft minutes. Attachments City Council Draft Minutes 8-14-2012 Form Review Inbox Reviewed By Date Mayor Dave Earling 08/17/2012 08:50 AM Finalize for Agenda Linda Hynd 08/17/2012 09:00 AM Form Started By: Sandy Chase Started On: 08/15/2012 03:19 PM Final Approval Date: 08/17/2012  Packet Page 4 of 393 Edmonds City Council Draft Minutes August 14, 2012 Page 1 EDMONDS CITY COUNCIL DRAFT MINUTES August 14, 2012 The Edmonds City Council meeting was called to order at 6:01 p.m. by Mayor Earling in the Council Chambers, 250 5th Avenue North, Edmonds. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT Dave Earling, Mayor Strom Peterson, Council President Frank Yamamoto, Councilmember Joan Bloom, Councilmember Kristiana Johnson, Councilmember Lora Petso, Councilmember Adrienne Fraley-Monillas, Councilmember Diane Buckshnis, Councilmember STAFF PRESENT Jim Lawless, Assistant Police Chief Phil Williams, Public Works Director Shawn Hunstock, Finance Director Leonard Yarberry, Building Official Rob English, City Engineer Sandy Chase, City Clerk Jeannie Dines, Recorder 1. APPROVAL OF AGENDA COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCIL PRESIDENT PETERSON, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 2. APPROVAL OF CONSENT AGENDA ITEMS Councilmember Bloom requested Item B be removed from the Consent Agenda. COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER YAMAMOTO, TO APPROVE THE REMAINDER OF THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: A. ROLL CALL B. APPROVAL OF CLAIM CHECKS #133554 THROUGH #133690 DATED AUGUST 9, 2012 FOR $500,591.96. APPROVAL OF PAYROLL CHECK #51592 DATED AUGUST 6, 2012 FOR $960.64 ITEM B: APPROVAL OF CITY COUNCIL MEETING MINUTES OF AUGUST 6, 2012 Councilmember Bloom requested the minutes be amended on page 21 to reflect that she voted no on the motion to delay Items 9 and 10. COUNCILMEMBER BLOOM MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE ITEM B AS AMENDED. MOTION CARRIED UNANIMOUSLY. 3. RESOLUTION TO REJECT ALL BIDS RECEIVED ON AUGUST 9, 2012 FOR THE MAIN STREET DECORATIVE LIGHTING AND SIDEWALK ENHANCEMENTS PROJECT (5TH AVE TO 6TH AVE) Packet Page 5 of 393 Edmonds City Council Draft Minutes August 14, 2012 Page 2 Public Works Director Phil Williams reported there were four bidders; none of the four bids were responsive in that the paperwork they submitted was deficient primarily in the area of compliance with the MBE/WBE goal for the project of 13%. The apparent lower bidder did not meet the goal of 13% and failed to articulate reasons to justify it, the second lower bidder also did not meet the goal, the third low bidder apparently met the goal but did not provide the necessary certifications from the subcontractors, and the fourth bidder failed to meet the goal. Discussions with the Federal Highway Administration (FHWA) and Washington State Department of Transportation (WSDOT) have failed to identify a way this could be rectified in a timely manner. The goal is to begin construction September 10. It was decided the best course of action was to reject all the bids and re-advertise. WSDOT has approved a two week re-advertisement of the project and staff has scheduled the bid opening for August 27, 2012. The process requires the Council to pass a resolution rejecting the first bids. Councilmember Buckshnis asked whether the Council should have rejected the bids first and then re- advertised tomorrow. Mr. Williams answered that would have been ideal; often staff brings the Council a resolution to reject all bids and authorization to re-advertise. In this case staff had the Council’s authorization to advertise for bids; there are no changes proposed in the project. In order to meet the schedule, it was imperative to re-advertise as soon as possible. Re-advertising yesterday will allow bids to be opened August 27 and the Council to consider award of the project at the August 28, 2012 Council meeting. That will provide adequate time to award the contract, issue notice to proceed, mobilize and begin the project by September 10 and complete it by November 16. COUNCILMEMBER FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE RESOLUTION 1281, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, TO REJECT ALL BIDS RECEIVED ON AUGUST 9, 2012 FOR THE MAIN STREET DECORATIVE LIGHTING AND SIDEWALK ENHANCEMENTS PROJECT. MOTION CARRIED UNANIMOUSLY. 4. AUDIENCE COMMENTS Alvin Rutledge, Edmonds, recommended elected officials be required to have their signatures notarized. He recognized Snohomish County has jurisdiction over elections. He also recommended the City adopt an ethics code. Roger Hertrich, Edmonds, relayed a rumor that the ferry dock at the end of Main Street was not moving to the Unocal property and the millions spent on cleanup of the Unocal site were for naught. The rumor he heard was there is interest in constructing an underpass for ferry loading and spending $50,000 to lobby the State legislature. He recommended the City work out a plan to either move the ferry or eliminate the idea completely. 5. MAYOR'S COMMENTS Mayor Earling reported on the City picnic held today; 140-150 staff members attended. Most directors and managers were involved with serving food. 6. COUNCIL COMMENTS Councilmember Petso suggested the Public Safety & Personnel Committee consider the authority and duties of the Council President and the Committee Chairs as it relates to agenda setting. Packet Page 6 of 393 Edmonds City Council Draft Minutes August 14, 2012 Page 3 Councilmember Johnson reported she represented the Council at the Arts Commission’s summer concert in the park on Sunday. It was a beautiful day and 500 people attended the concert by Tingstad and Rumbel. She encouraged the public to attend the remaining two summer concerts. Council President Peterson relayed the concern over agenda setting was the vote the Council took at the end of the last week’s meeting regarding step-backs and retail only in the BD1 zone. The reason those items are not scheduled on tonight’s committee meeting agendas is both staff members were on vacation. He assured he was not trying to ignore the will of the Council. COUNCIL PRESIDENT PETERSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO RECONSIDER THE VOTE TO SEND ITEMS 9 (RETAIL ONLY ZONE IN BD1) AND 10 (STEP-BACKS) THROUGH COMMITTEE NEXT WEEK AND SCHEDULE THEM ON THE FOLLOWING COUNCIL MEETING FOR DISCUSSION AND POTENTIAL ACTION. For Councilmember Fraley-Monillas, Council President Peterson explained if Council wanted these items to go to committee, he could schedule a special Parks, Planning and Public Works Committee meeting on Monday, August 20. Councilmember Fraley-Monillas found that a reasonable alternative. MOTION CARRIED UNANIMOUSLY. Council President Peterson asked whether the Council wanted to schedule a special Parks, Planning and Public Works Committee meeting on Monday, August 20 or have the items simply come to full Council. Councilmember Fraley-Monillas responded she would be satisfied with either of Council President Peterson’s suggestions or the items could be scheduled for the September committee meeting. Council President Peterson preferred not to delay these items for a month due to upcoming budget deliberations. Councilmember Buckshnis commented the items do not necessarily need to be reviewed by committee; Councilmember Johnson has heard the items at the Planning Board, Councilmember Yamamoto and she heard it at the EDC and Councilmember Petso understands step-backs. Councilmember Petso preferred to schedule a special Parks, Planning and Public Works Committee meeting on Monday, August 20. COUNCILMEMBER PETSO MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO SCHEDULE A SPECIAL PARKS, PLANNING AND PUBLIC WORKS COMMITTEE MEETING ON MONDAY, AUGUST 20 AT 11:00 A.M. TO DISCUSS THE TWO ITEMS REFERRED TO COMMITTEE. MOTION CARRIED UNANIMOUSLY. Council President Peterson advised he will confirm the exact location of the meeting in City Hall with staff. The meeting will be noticed. Councilmember Buckshnis reported on the staff picnic, commenting on the number of staff with lengthy service. Awards were given to employees for 5 – 30 years of service. Councilmember Fraley-Monillas reported she also attend the staff barbeque and found it a lot of fun to talk with staff. She thanked the Chamber of Commerce and sponsors of this year’s Taste of Edmonds. She was a judge and had a wonderful time. 7. ADJOURN With no further business, the Council meeting was adjourned committee meetings at 6:25 p.m. Packet Page 7 of 393    AM-5076     4. C.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Shawn Hunstock Submitted By:Nori Jacobson Department:Finance Review Committee: Committee Action: Approve for Consent Agenda Type: Action  Information Subject Title Approval of payroll direct deposit & checks #51593 through #51625 for $475,737.42 and benefit checks #51626 through #51634 & wire payments for $124,333.88 for the period August 1, 2012 through August 15, 2012. Recommendation Approval of payroll and benefit direct deposit, checks & wire payments. Previous Council Action N/A Narrative In accordance with the State statutes, City payments must be approved by the City Council. Ordinance #2896 delegates this approval to the Council President who reviews and recommends either approval or non-approval of expenditures. Fiscal Impact Fiscal Year:2012 Revenue: Expenditure:600,071.30 Fiscal Impact: Payroll Employee checks & direct deposit $475,737.42 Payroll Benefit checks and wire payments $124,333.88 Total Payroll $600,071.30 Attachments Benefit Summary Report Earnings Summary Report Form Review Packet Page 8 of 393 Inbox Reviewed By Date Finance Shawn Hunstock 08/17/2012 09:11 AM City Clerk Linda Hynd 08/17/2012 09:12 AM Mayor Dave Earling 08/17/2012 09:23 AM Finalize for Agenda Linda Hynd 08/17/2012 09:43 AM Form Started By: Nori Jacobson Started On: 08/16/2012 02:37 PM Final Approval Date: 08/17/2012  Packet Page 9 of 393 Packet Page 10 of 393 Packet Page 11 of 393 Packet Page 12 of 393    AM-5074     4. D.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted By:Nori Jacobson Department:Finance Review Committee: Committee Action:  Type:  Information Subject Title Approval of claim checks #133691 through #133823 dated August 16, 2013 for $362,327.33 and replacement checks #133763 for $3,259.01 and #133803 for $952.90. Recommendation Approval of claim checks. Previous Council Action N/A Narrative In accordance with the State statutes, City payments must be approved by the City Council. Ordinance #2896 delegates this approval to the Council President who reviews and recommends either approval or non-approval of expenditures. Fiscal Impact Fiscal Year:2012 Revenue: Expenditure:362,327.33 Fiscal Impact: Claims $362,327.33 Replacement checks $4,211.91 Attachments Claim cks 08-16-12 Project Numbers 08-16-12 Form Review Inbox Reviewed By Date Finance Shawn Hunstock 08/17/2012 09:11 AM City Clerk Linda Hynd 08/17/2012 09:12 AM Mayor Dave Earling 08/17/2012 09:23 AM Packet Page 13 of 393 Mayor Dave Earling 08/17/2012 09:23 AM Finalize for Agenda Linda Hynd 08/17/2012 09:43 AM Form Started By: Nori Jacobson Started On: 08/16/2012 08:44 AM Final Approval Date: 08/17/2012  Packet Page 14 of 393 08/16/2012 Voucher List City of Edmonds 1 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133691 8/16/2012 000850 ALDERWOOD WATER DISTRICT 9189 MONTHLY WHOLESALE WATER CHARGES MONTHLY WHOLESALE WATER CHARGES 411.000.654.534.800.330.00 153,623.50 Total :153,623.50 133692 8/16/2012 061540 ALLIED WASTE SERVICES 3-0197-0800478 FIRE STATION #20 23009 88TH AVE W FIRE STATION #20 23009 88TH AVE W 001.000.651.519.920.470.00 133.40 PUBLIC WORKS OMC 7110 210TH ST SW3-0197-0800897 PUBLIC WORKS OMC 7110 210TH ST SW 001.000.650.519.910.470.00 26.22 PUBLIC WORKS OMC 7110 210TH ST SW 111.000.653.542.900.470.00 99.64 PUBLIC WORKS OMC 7110 210TH ST SW 411.000.654.534.800.470.00 99.64 PUBLIC WORKS OMC 7110 210TH ST SW 411.000.655.535.800.470.00 99.64 PUBLIC WORKS OMC 7110 210TH ST SW 511.000.657.548.680.470.00 99.64 PUBLIC WORKS OMC 7110 210TH ST SW 411.000.652.542.900.470.00 99.62 FIRE STATION #16 8429 196TH ST SW3-0197-0801132 FIRE STATION #16 8429 196TH ST SW 001.000.651.519.920.470.00 137.89 CLUBHOUSE 6801 N MEADOWDALE RD3-0197-0829729 CLUBHOUSE 6801 N MEADOWDALE RD 001.000.651.519.920.470.00 60.02 Total :855.71 133693 8/16/2012 001528 AM TEST INC 71631 SAMPLE NUMBERS TESTING SAMPLE NUMBERS TESTING 411.000.656.538.800.410.31 75.00 Total :75.00 133694 8/16/2012 068857 AMEC EARTH & ENVIRONMENTAL INC K11571759 TASK ORDER 12-01:FISH EXCLUSION 1Page: Packet Page 15 of 393 08/16/2012 Voucher List City of Edmonds 2 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133694 8/16/2012 (Continued)068857 AMEC EARTH & ENVIRONMENTAL INC Task Order 12-01: Fish Exclusion 411.000.652.542.900.410.00 620.00 Total :620.00 133695 8/16/2012 069751 ARAMARK UNIFORM SERVICES 655-6332321 UNIFORM SERVICES PARK MAINTENANCE UNIFORM SERVICES 001.000.640.576.800.240.00 27.45 9.5% Sales Tax 001.000.640.576.800.240.00 2.61 Total :30.06 133696 8/16/2012 069751 ARAMARK UNIFORM SERVICES 655-6332327 21580001 UNIFORMS 411.000.656.538.800.240.00 57.50 9.5% Sales Tax 411.000.656.538.800.240.00 5.46 Total :62.96 133697 8/16/2012 064343 AT&T 425-776-5316 PARKS FAX MODEM PARKS FAX MODEM 001.000.640.576.800.420.00 45.45 Total :45.45 133698 8/16/2012 064807 ATS AUTOMATION INC I003702 SR CENTER -VAV TUX CONTROLLER SR CENTER -VAV TUX CONTROLLER 001.000.651.519.920.310.00 395.13 9.5% Sales Tax 001.000.651.519.920.310.00 37.54 Total :432.67 133699 8/16/2012 001795 AUTOGRAPHICS 78516 BANNER DATE CHANGE BIRD FEST Date change on Bird Fest banner for 2012 120.000.310.575.420.490.00 50.00 9.5% Sales Tax 120.000.310.575.420.490.00 4.75 2Page: Packet Page 16 of 393 08/16/2012 Voucher List City of Edmonds 3 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :54.75133699 8/16/2012 001795 001795 AUTOGRAPHICS 133700 8/16/2012 070305 AUTOMATIC FUNDS TRANSFER 65843 OUT SOURCING OF UTILITY BILLS UB Outsourcing area #800 Printing 411.000.652.542.900.490.00 114.92 UB Outsourcing area #800 Printing 411.000.654.534.800.490.00 114.92 UB Outsourcing area #800 Printing 411.000.655.535.800.490.00 118.39 UB Outsourcing area #800 Postage 411.000.654.534.800.420.00 386.04 UB Outsourcing area #800 Postage 411.000.655.535.800.420.00 386.03 9.5% Sales Tax 411.000.652.542.900.490.00 10.92 9.5% Sales Tax 411.000.654.534.800.490.00 10.92 9.5% Sales Tax 411.000.655.535.800.490.00 11.24 Total :1,153.38 133701 8/16/2012 001801 AUTOMATIC WILBERT VAULT CO 23778 BURIAL SUPPLIES BURIAL SUPPLIES: DOWNEY 130.000.640.536.200.340.00 405.00 BURIAL SUPPLIES23853 BURIAL SUPPLIES: BLUE 130.000.640.536.200.340.00 405.00 BURIAL SUPPLIES23974 BURIAL SUPPLIES: NILSEN 130.000.640.536.200.340.00 405.00 Total :1,215.00 133702 8/16/2012 074130 BEADLE, ANGELA BEADLE0809 REFUND RETURN OF DAMAGE DEPOSIT 001.000.000.239.200.000.00 450.00 3Page: Packet Page 17 of 393 08/16/2012 Voucher List City of Edmonds 4 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :450.00133702 8/16/2012 074130 074130 BEADLE, ANGELA 133703 8/16/2012 002500 BLUMENTHAL UNIFORMS & EQUIP 935492 INV#935492 - EDMONDS PD - LEE 2ND CHANCE SUMMIT II VEST 001.000.410.521.220.240.00 725.00 9.5% Sales Tax 001.000.410.521.220.240.00 68.88 INV#943108 - EDMONDS PD -HAWLEY943108 PATROL JACKET W/FLEECE 001.000.410.521.220.240.00 400.00 CLOTH NAME TAGS "HAWLEY" 001.000.410.521.220.240.00 9.90 SEW NAME EMBLEM ON JACKET 001.000.410.521.220.240.00 1.00 APPLY HEAT STAMP TO JACKET 001.000.410.521.220.240.00 12.00 SEW BADGE EMBLEM ON JACKET 001.000.410.521.220.240.00 2.00 SEW PR OF CORP CHEVRONS 001.000.410.521.220.240.00 5.00 CORP CHEVRONS 001.000.410.521.220.240.00 5.90 9.5% Sales Tax 001.000.410.521.220.240.00 41.40 INV#943108-80 REFUND OVER CHG943108-80 -REFUND SEWING OF NAME-JACKET 001.000.410.521.220.240.00 -1.00 REFUND CHG OF HEAT STAMP 001.000.410.521.220.240.00 -12.00 REFUND SEWING OF BADGE-JACKET 001.000.410.521.220.240.00 -2.00 9.5% Sales Tax 001.000.410.521.220.240.00 -1.43 Total :1,254.65 133704 8/16/2012 065739 BOBBY WOLFORD TRUCKING &052940 Storm - Dump Fees 4Page: Packet Page 18 of 393 08/16/2012 Voucher List City of Edmonds 5 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133704 8/16/2012 (Continued)065739 BOBBY WOLFORD TRUCKING & Storm - Dump Fees 411.000.652.542.320.490.00 47.25 Total :47.25 133705 8/16/2012 074131 BRAINARD, LARRY BRAINARD0806 REFUND REFUND BY CUSTOMER REQUEST 001.000.000.239.200.000.00 36.00 Total :36.00 133706 8/16/2012 003001 BUILDERS SAND & GRAVEL 298472 SAND SAND 001.000.640.576.800.310.00 375.00 9.5% Sales Tax 001.000.640.576.800.310.00 35.63 Total :410.63 133707 8/16/2012 068484 CEMEX LLC 9424277744 Roadway - Asphalt Roadway - Asphalt 111.000.653.542.310.310.00 105.00 9.5% Sales Tax 111.000.653.542.310.310.00 9.98 Roadway - Asphalt9424285784 Roadway - Asphalt 111.000.653.542.310.310.00 1,325.00 9.5% Sales Tax 111.000.653.542.310.310.00 125.88 Roadway - Asphalt9424285785 Roadway - Asphalt 111.000.653.542.310.310.00 751.40 9.5% Sales Tax 111.000.653.542.310.310.00 71.38 Roadway - Asphalt9424285786 Roadway - Asphalt 111.000.653.542.310.310.00 750.00 9.5% Sales Tax 5Page: Packet Page 19 of 393 08/16/2012 Voucher List City of Edmonds 6 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133707 8/16/2012 (Continued)068484 CEMEX LLC 111.000.653.542.310.310.00 71.25 Roadway - Asphalt9424286787 Roadway - Asphalt 111.000.653.542.310.310.00 282.10 9.5% Sales Tax 111.000.653.542.310.310.00 26.80 Roadway - Asphalt9424303349 Roadway - Asphalt 111.000.653.542.310.310.00 1,320.00 9.5% Sales Tax 111.000.653.542.310.310.00 125.41 Roadway - Asphalt9424313094 Roadway - Asphalt 111.000.653.542.310.310.00 1,285.00 9.5% Sales Tax 111.000.653.542.310.310.00 122.08 Total :6,371.28 133708 8/16/2012 003510 CENTRAL WELDING SUPPLY RN07120987 2954000 CYLINDER RENTAL 411.000.656.538.800.450.21 55.00 9.5% Sales Tax 411.000.656.538.800.450.21 5.23 Total :60.23 133709 8/16/2012 064291 CENTURY LINK 206-Z02-0478 TELEMETRY TELEMETRY 411.000.656.538.800.420.00 138.73 Total :138.73 133710 8/16/2012 065682 CHS ENGINEERS LLC 450901-1207 E9GA.SERVICES THRU JULY 2012 E9GA.Services thru July 2012 412.300.630.594.320.410.00 9,023.05 Total :9,023.05 6Page: Packet Page 20 of 393 08/16/2012 Voucher List City of Edmonds 7 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133711 8/16/2012 019215 CITY OF LYNNWOOD 9564 INV#9564 CUST#47 -EDMONDS PD NARCOTICS SGT APRIL-JUNE 2012 104.000.410.521.210.510.00 9,790.65 INV#9566 CUST#45 -EDMONDS PD9566 NEXTEL PHONE FOR NARCS 07/2012 104.000.410.521.210.420.00 57.15 Total :9,847.80 133712 8/16/2012 022200 CITY OF MOUNTLAKE TERRACE 2355 E2FD.50% OF COSTS-MCALEER CREEK CULVERT E2FD.50% of costs-McAleer Creek Culvert 412.200.630.594.320.410.00 6,925.13 E2FD.QUARTER 2 EXPENSES2356 E2FD.Quarter 2 Expenses 412.200.630.594.320.410.00 2,900.00 Total :9,825.13 133713 8/16/2012 022200 CITY OF MOUNTLAKE TERRACE 2363 FALL CRAZE POSTAGE FALL CRAZE POSTAGE 001.000.640.574.200.420.00 6,725.18 Total :6,725.18 133714 8/16/2012 004095 COASTWIDE LABS W2455422 SUPPLIES LINERS, TOILET TISSUE, ETC. 001.000.640.576.800.310.00 1,812.76 9.5% Sales Tax 001.000.640.576.800.310.00 172.21 Total :1,984.97 133715 8/16/2012 004095 COASTWIDE LABS W2450382 Library - 4x8 Mat Library - 4x8 Mat 001.000.651.519.920.310.00 144.67 9.5% Sales Tax 001.000.651.519.920.310.00 13.74 Recycle - Trash LinersW2457492-1 Recycle - Trash Liners 411.000.654.537.900.490.00 26.49 7Page: Packet Page 21 of 393 08/16/2012 Voucher List City of Edmonds 8 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133715 8/16/2012 (Continued)004095 COASTWIDE LABS 9.5% Sales Tax 411.000.654.537.900.490.00 2.52 Fac Maint - Cleaner, Floor Finish,W2459821 Fac Maint - Cleaner, Floor Finish, 001.000.651.519.920.310.00 490.03 9.5% Sales Tax 001.000.651.519.920.310.00 46.55 Total :724.00 133716 8/16/2012 072848 COPIERS NW INV730612 INV#INV730612 ACCT#HMH636 -EDMONDS PD COPIER RENTAL 07/05 TO 08/04/12 001.000.410.521.100.450.00 226.77 9.5% Sales Tax 001.000.410.521.100.450.00 21.54 INV#INV730613 ACCT#HMH636 -EDMONDS PDINV730613 BLACK COPIES 07/05 TO 08/04/12 001.000.410.521.100.450.00 49.82 COLOR COPIES 07/05 TO 08/04/12 001.000.410.521.100.450.00 106.88 9.5% Sales Tax 001.000.410.521.100.450.00 14.89 Total :419.90 133717 8/16/2012 063519 CUZ CONCRETE PRODUCTS INC 206099 Sewer - Manhole Adjust Rings Sewer - Manhole Adjust Rings 411.000.655.535.800.310.00 199.84 9.5% Sales Tax 411.000.655.535.800.310.00 18.98 Storm - Catch Basins206100 Storm - Catch Basins 411.000.652.542.400.310.00 642.32 9.5% Sales Tax 411.000.652.542.400.310.00 61.02 Total :922.16 8Page: Packet Page 22 of 393 08/16/2012 Voucher List City of Edmonds 9 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133718 8/16/2012 074132 DAVISON, BLAINE DAVISON0807 REFUND REFUND BY CUSTOMER REQUEST 001.000.000.239.200.000.00 56.00 Total :56.00 133719 8/16/2012 064531 DINES, JEANNIE 12-3294 MINUTE TAKING 7/31 & 8/6 Council Minutes 001.000.250.514.300.410.00 504.00 Total :504.00 133720 8/16/2012 061580 ECKSTROM INDUSTRIES 00049292 1948 DOOR HARWARE 411.000.656.538.800.310.21 338.00 9.2% Sales Tax 411.000.656.538.800.310.21 31.10 Total :369.10 133721 8/16/2012 007625 EDMONDS ARTS FESTIVAL EAFF2012 TOURISM PROMOTION AGREEMENT TOURISM PROMOTION CONTRACT 123.000.640.573.100.410.00 1,000.00 Total :1,000.00 133722 8/16/2012 007675 EDMONDS AUTO PARTS 13625 SUPPLIES OIL, ETC. 001.000.640.576.800.310.00 67.96 9.5% Sales Tax 001.000.640.576.800.310.00 6.46 FUEL FILTER13646 FUEL FILTER 130.000.640.536.500.310.00 9.10 9.5% Sales Tax 130.000.640.536.500.310.00 0.86 AIR FILTER13654 AIR FILTER 130.000.640.536.500.310.00 27.88 9.5% Sales Tax 9Page: Packet Page 23 of 393 08/16/2012 Voucher List City of Edmonds 10 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133722 8/16/2012 (Continued)007675 EDMONDS AUTO PARTS 130.000.640.536.500.310.00 2.65 Total :114.91 133723 8/16/2012 008705 EDMONDS WATER DIVISION 1-00655 LIFT STATION #7 121 W DAYTON ST LIFT STATION #7 121 W DAYTON ST 411.000.655.535.800.470.00 29.57 LIFT STATION #8 113 RAILROAD AVE1-00925 LIFT STATION #8 113 RAILROAD AVE 411.000.655.535.800.470.00 32.11 LIFT STATION #1 105 CASPERS ST1-01950 LIFT STATION #1 105 CASPERS ST 411.000.655.535.800.470.00 29.57 OLD PUBLIC WORKS 200 DAYTON ST1-03950 OLD PUBLIC WORKS 200 DAYTON ST 411.000.654.534.800.470.00 479.34 OLD PUBLIC WORKS SHOP METER1-05350 OLD PUBLIC WORKS SHOP METER 411.000.654.534.800.470.00 66.53 LIFT STATION #6 100 PINE ST1-05705 LIFT STATION #6 100 PINE ST 411.000.655.535.800.470.00 62.73 CITY HALL 121 5TH AVE N1-13975 CITY HALL 121 5TH AVE N 001.000.651.519.920.470.00 480.78 CITY HALL 121 5TH AVE N1-14000 CITY HALL 121 5TH AVE N 001.000.651.519.920.470.00 98.72 Total :1,279.35 133724 8/16/2012 068803 EJ USA INC 3513315 Sewer Inventory - S-MHCI-25.25-020 Sewer Inventory - S-MHCI-25.25-020 411.000.655.535.800.340.00 1,506.89 Inventory - S-MHCI-25.25-010 411.000.655.535.800.340.00 1,506.89 NON INVENTORY - S-MHCI-12-010 10Page: Packet Page 24 of 393 08/16/2012 Voucher List City of Edmonds 11 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133724 8/16/2012 (Continued)068803 EJ USA INC 411.000.655.535.800.310.00 294.75 NON INVENTORY - S-MHCI-12-020 411.000.655.535.800.310.00 294.75 9.5% Sales Tax 411.000.655.535.800.340.00 286.31 9.5% Sales Tax 411.000.655.535.800.310.00 56.00 Total :3,945.59 133725 8/16/2012 008812 ELECTRONIC BUSINESS MACHINES 078575 COPIER CHARGES C1030 Monthly color & b/w charges C1030 001.000.220.516.100.450.00 5.86 Monthly color & b/w charges C1030 001.000.610.519.700.450.00 5.87 Monthly color & b/w charges C1030 001.000.210.513.100.450.00 5.83 9.5% Sales Tax 001.000.220.516.100.450.00 0.56 9.5% Sales Tax 001.000.610.519.700.450.00 0.56 9.5% Sales Tax 001.000.210.513.100.450.00 0.55 Total :19.23 133726 8/16/2012 008812 ELECTRONIC BUSINESS MACHINES 078572 Meter charges for Planning dept. C1030 Meter charges for Planning dept. C1030 001.000.620.558.800.450.00 45.46 9.5% Sales Tax 001.000.620.558.800.450.00 4.32 Meter charges for Building Dept. C1030078573 Meter charges for Building Dept. C1030 001.000.620.558.800.450.00 16.71 9.5% Sales Tax 001.000.620.558.800.450.00 1.59 11Page: Packet Page 25 of 393 08/16/2012 Voucher List City of Edmonds 12 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :68.08133726 8/16/2012 008812 008812 ELECTRONIC BUSINESS MACHINES 133727 8/16/2012 008812 ELECTRONIC BUSINESS MACHINES 078574 Additional images Council Office Copier Additional images Council Office Copier 001.000.110.511.100.490.00 2.95 Total :2.95 133728 8/16/2012 071572 EVIDENT CRIME SCENE PRODUCTS 70240A INV#70240A - EDMONDS PD 58MM CLEAR UV FILTER 001.000.410.521.210.310.00 22.00 58MM ORANGE FILTER 001.000.410.521.210.310.00 27.00 58MM RED FILTER 001.000.410.521.210.310.00 27.00 58MM YELLOW FILTER 001.000.410.521.210.310.00 27.00 TYVEK COVERALL - LARGE 001.000.410.521.210.310.00 35.00 TYVEK BOOT COVERS 001.000.410.521.210.310.00 24.00 20 3M RESPIRATORS N-95 001.000.410.521.210.310.00 29.00 Freight 001.000.410.521.210.310.00 20.00 Total :211.00 133729 8/16/2012 074134 FARRELL, HEATHER BLD20120586 Online permit voided - not in City Online permit voided - not in City 001.000.000.257.620.000.00 95.00 Total :95.00 133730 8/16/2012 066378 FASTENAL COMPANY WAMOU26278 SUPPLIES SUPPLIES 001.000.640.576.800.310.00 10.87 9.5% Sales Tax 001.000.640.576.800.310.00 1.03 12Page: Packet Page 26 of 393 08/16/2012 Voucher List City of Edmonds 13 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133730 8/16/2012 (Continued)066378 FASTENAL COMPANY SUPPLIESWAMOU26380 SUPPLIES 001.000.640.576.800.310.00 21.50 9.5% Sales Tax 001.000.640.576.800.310.00 2.04 Total :35.44 133731 8/16/2012 066378 FASTENAL COMPANY WAMOU26328 Fac Maint - Socket Set Supplies Fac Maint - Socket Set Supplies 001.000.651.519.920.350.00 79.27 9.5% Sales Tax 001.000.651.519.920.350.00 7.53 Total :86.80 133732 8/16/2012 009815 FERGUSON ENTERPRISES INC 0345466 Water Meter Inventory - #2034~ Water Meter Inventory - #2034~ 411.000.654.534.800.342.00 2,626.00 9.5% Sales Tax 411.000.654.534.800.342.00 249.47 Water Inventory - #2034 Over ChargeCM083297 Water Inventory - #2034 Over Charge 411.000.654.534.800.342.00 -200.90 9.5% Sales Tax 411.000.654.534.800.342.00 -19.09 Total :2,655.48 133733 8/16/2012 067004 FINE LINE INDUSTRIAL PRODUCTS 21859-00 5687 LEVEL TRANSMITTER 411.000.656.538.800.310.22 1,120.00 Freight 411.000.656.538.800.310.22 20.49 9.5% Sales Tax 411.000.656.538.800.310.22 108.35 Total :1,248.84 13Page: Packet Page 27 of 393 08/16/2012 Voucher List City of Edmonds 14 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133734 8/16/2012 074062 FITNESS INDUSTRIOUS LLC XFIT08092012 XFIT CAMP NUTRITION CLASS XFIT CAMP NUTRITION CLASS 8/9/12 001.000.640.574.200.410.00 300.00 Total :300.00 133735 8/16/2012 011900 FRONTIER 425-775-1344 BEACH RANGER PHONE @ FISHING PIER BEACH RANGER PHONE @ FISHING PIER 001.000.640.574.350.420.00 54.45 Total :54.45 133736 8/16/2012 011900 FRONTIER 253-011-1177 PUBLIC WORKS OMC RADIO LINE PUBLIC WORKS OMC RADIO LINE TO FIVE 001.000.650.519.910.420.00 5.48 PUBLIC WORKS OMC RADIO LINE TO FIVE 111.000.653.542.900.420.00 20.81 PUBLIC WORKS OMC RADIO LINE TO FIVE 411.000.654.534.800.420.00 20.81 PUBLIC WORKS OMC RADIO LINE TO FIVE 411.000.655.535.800.420.00 20.81 PUBLIC WORKS OMC RADIO LINE TO FIVE 511.000.657.548.680.420.00 20.81 PUBLIC WORKS OMC RADIO LINE TO FIVE 411.000.652.542.900.420.00 20.78 CLUBHOUSE ALARM LINES 6801 MEADOWDALE RD425-745-4313 CLUBHOUSE FIRE AND INTRUSION ALARM 001.000.651.519.920.420.00 107.45 UTILITY BILLING RADIO LINE425-775-7865 UTILITY BILLING RADIO LINE TO FIVE 411.000.654.534.800.420.00 53.81 LIFT STATION #7 VG SPECIAL ACCESS LINE425-776-2742 LIFT STATION #7 V/G SPECIAL ACCESS LINE 411.000.655.535.800.420.00 31.35 Total :302.11 133737 8/16/2012 011480 GAYDOS, KEN ICPC JULY 2012 GAYDOS REIMBURSEMENT ICPC CONF JULY REGISTRATION -ICPC CONFERENCE SPOKANE 14Page: Packet Page 28 of 393 08/16/2012 Voucher List City of Edmonds 15 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133737 8/16/2012 (Continued)011480 GAYDOS, KEN 001.000.410.521.400.430.00 195.00 LODGING FOR 5 NIGHTS @ $123.77 001.000.410.521.400.430.00 618.85 PARKING FOR 5 DAYS AT HOTEL @ $ 001.000.410.521.400.430.00 32.60 MILEAGE PRIVATE VEHICLE - 592 MILES 001.000.410.521.400.430.00 328.56 LUNCH - 7/8/12 001.000.410.521.400.430.00 6.77 DINNER - 7/8/12 001.000.410.521.400.430.00 24.40 LUNCH 7/10/12 001.000.410.521.400.430.00 10.52 DINNER 7/10/12 001.000.410.521.400.430.00 18.20 DINNER - 7/11/12 001.000.410.521.400.430.00 24.00 Total :1,258.90 133738 8/16/2012 072515 GOOGLE INC 2877031 C/A #396392 MESSAGE DISCOVERY BILLING Internet Anti-Virus &Spam Maint Fee 001.000.310.518.880.480.00 240.00 Total :240.00 133739 8/16/2012 012199 GRAINGER 9887003425 SUPPLIES BALL VALVES, HOSE/PIPE, ETC. 001.000.640.576.800.310.00 159.82 9.5% Sales Tax 001.000.640.576.800.310.00 15.19 Total :175.01 133740 8/16/2012 012199 GRAINGER 9882844948 Fac Maint - Radial Bearing, Straight Fac Maint - Radial Bearing, Straight 001.000.651.519.920.310.00 143.27 9.5% Sales Tax 15Page: Packet Page 29 of 393 08/16/2012 Voucher List City of Edmonds 16 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133740 8/16/2012 (Continued)012199 GRAINGER 001.000.651.519.920.310.00 13.59 Fac Maint - Motor, V Belt, Ear Plugs9884741175 Fac Maint - Motor, V Belt, Ear Plugs 001.000.651.519.920.310.00 94.75 9.2% Sales Tax 001.000.651.519.920.310.00 8.71 Fac Maint Returns9890730485 Fac Maint Returns 001.000.651.519.920.310.00 -31.61 9.5% Sales Tax 001.000.651.519.920.310.00 -2.99 Fac Maint - Radial Bearing9891617939 Fac Maint - Radial Bearing 001.000.651.519.920.310.00 17.00 9.3% Sales Tax 001.000.651.519.920.310.00 1.57 Total :244.29 133741 8/16/2012 061410 GRCC/WETRC 121040 WETRC - Basic Field Hydraulics -S Long WETRC - Basic Field Hydraulics -S Long 411.000.655.535.800.490.00 335.00 WETRC - Basic Field Hydraulics121041 WETRC - Basic Field Hydraulics 411.000.655.535.800.490.00 335.00 Total :670.00 133742 8/16/2012 012560 HACH COMPANY 7872650 112830 LBOD PROBE/CABLE 411.000.656.538.800.310.22 868.00 9.5% Sales Tax 411.000.656.538.800.310.22 82.46 Total :950.46 133743 8/16/2012 074128 HANBY, MATT 0516928 REFUND SPAY/NEUTER REFUND #0516928 SPAY/NEUTER REFUND #8462 16Page: Packet Page 30 of 393 08/16/2012 Voucher List City of Edmonds 17 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133743 8/16/2012 (Continued)074128 HANBY, MATT 001.000.000.343.930.000.00 50.00 Total :50.00 133744 8/16/2012 060985 HARRINGTON INDUSTRIAL PLASTICS 007D6046 036570 FLOWMETER 411.000.656.538.800.310.21 376.28 Freight 411.000.656.538.800.310.21 13.40 Total :389.68 133745 8/16/2012 010900 HD FOWLER CO INC C281634 WATER -RETURN LEAD SUPPLIES WATER -RETURN LEAD SUPPLIES 411.000.654.534.800.310.00 -2,151.86 9.3% Sales Tax 411.000.654.534.800.310.00 -200.48 Water - Inventory - ~I3152082 Water - Inventory - ~ 411.000.654.534.800.341.00 552.42 Inventory ~ 411.000.654.534.800.341.00 296.96 Water Supplies - Meter Boxes,Box Lids 411.000.654.534.800.310.00 3,739.34 9.5% Sales Tax 411.000.654.534.800.341.00 80.69 9.5% Sales Tax 411.000.654.534.800.310.00 355.24 WATER - PARTS SUPPLIESI3166570 WATER - PARTS SUPPLIES 411.000.654.534.800.310.00 2,151.28 9.5% Sales Tax 411.000.654.534.800.310.00 204.37 WATER - METER BOXESI3187716 WATER - METER BOXES 411.000.654.534.800.310.00 974.80 9.5% Sales Tax 17Page: Packet Page 31 of 393 08/16/2012 Voucher List City of Edmonds 18 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133745 8/16/2012 (Continued)010900 HD FOWLER CO INC 411.000.654.534.800.310.00 92.60 Total :6,095.36 133746 8/16/2012 072647 HERRERA ENVIRONMENTAL 31282 E1FN.SERVICES THRU 07/27/12 E1FN.Services thru 7/27/12 412.200.630.594.320.410.00 14,382.95 Total :14,382.95 133747 8/16/2012 070896 HSBC BUSINESS SOLUTIONS 8941 Fac Maint - Sponges, Blocks, Magic Fac Maint - Sponges, Blocks, Magic 001.000.651.519.920.310.00 279.16 PW - Soaps 001.000.651.519.920.310.00 53.74 Water Sewer - Supplies 411.000.654.534.800.310.00 14.85 Water Sewer - Supplies 411.000.655.535.800.310.00 14.84 Svc Fees 001.000.651.519.920.310.00 3.46 9.5% Sales Tax 001.000.651.519.920.310.00 5.11 9.5% Sales Tax 411.000.654.534.800.310.00 1.41 9.5% Sales Tax 411.000.655.535.800.310.00 1.41 Fac Maint Return Merchandise8941 Fac Maint Return Merchandise 001.000.651.519.920.310.00 -28.79 Total :345.19 133748 8/16/2012 073548 INDOFF INCORPORATED 2129205 226961 BINDERS/DIVIDERS/WRITING PADS 411.000.656.538.800.310.41 264.89 9.5% Sales Tax 411.000.656.538.800.310.41 25.17 18Page: Packet Page 32 of 393 08/16/2012 Voucher List City of Edmonds 19 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :290.06133748 8/16/2012 073548 073548 INDOFF INCORPORATED 133749 8/16/2012 069040 INTERSTATE AUTO PARTS 560030 Fleet Parts Inventory - 4 Wave Rotors Fleet Parts Inventory - 4 Wave Rotors 511.000.657.548.680.340.40 346.04 Shop Tool 511.000.657.548.680.350.00 28.45 9.5% Sales Tax 511.000.657.548.680.340.40 32.88 9.5% Sales Tax 511.000.657.548.680.350.00 2.70 Unit eq85sd - Quasar 36 QG P LED (6560160 Unit eq85sd - Quasar 36 QG P LED (6 511.100.657.594.480.640.00 569.70 9.5% Sales Tax 511.100.657.594.480.640.00 54.12 Total :1,033.89 133750 8/16/2012 014940 INTERSTATE BATTERY SYSTEMS 709565 SUPPLIES DIAMOND BACK BLK/CLEAR 001.000.640.576.800.310.00 39.48 9.5% Sales Tax 001.000.640.576.800.310.00 3.75 Total :43.23 133751 8/16/2012 014940 INTERSTATE BATTERY SYSTEMS 707913 Fleet Shop Supplies -Nylon Split Loom Fleet Shop Supplies -Nylon Split Loom 511.000.657.548.680.310.00 13.10 9.5% Sales Tax 511.000.657.548.680.310.00 1.24 Total :14.34 133752 8/16/2012 069366 ISSAQUAH HONDA KUBOTA 19437 CEMETERY WALKER MOWER CEMETERY WALKER MOWER 130.000.640.594.360.640.00 15,832.00 9.5% Sales Tax 19Page: Packet Page 33 of 393 08/16/2012 Voucher List City of Edmonds 20 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133752 8/16/2012 (Continued)069366 ISSAQUAH HONDA KUBOTA 130.000.640.594.360.640.00 1,504.04 Total :17,336.04 133753 8/16/2012 068401 KING CO OFFICE OF FINANCE WLRD WRIA 8 PROJECT 1001363 INTERLOCAL AGREEMENT WATERSHED PLANNING 411.000.652.542.900.510.00 4,406.00 Total :4,406.00 133754 8/16/2012 017050 KWICK'N KLEEN CAR WASH 11072011-01 (7-2012)INV#11072011-01 (7-2012) -EDMONDS PD 28 CAR WASHES @ $5.03 07/2012 001.000.410.521.220.480.00 241.44 Total :241.44 133755 8/16/2012 074135 LAFAVE, CAROLYN 8/14/2012 MAYOR'S BBQ Food & decorations for Mayor's annual 001.000.220.516.100.490.00 660.62 Total :660.62 133756 8/16/2012 067725 LES SCHWAB TIRE CENTER 230635 Unit 55 - Flat Repair Unit 55 - Flat Repair 511.000.657.548.680.480.00 34.75 9.5% Sales Tax 511.000.657.548.680.480.00 3.30 Total :38.05 133757 8/16/2012 073603 LIGHTHOUSE LAW GROUP PLLC Aug-12 08-12 LEGALS FEES 08-12 Legal fees 001.000.360.515.100.410.00 32,000.00 Total :32,000.00 133758 8/16/2012 018950 LYNNWOOD AUTO PARTS INC 661027 Unit 16 - Oil Filter Unit 16 - Oil Filter 511.000.657.548.680.310.00 3.38 9.5% Sales Tax 511.000.657.548.680.310.00 0.32 Unit 19 - Lmp Bulbs (10)661160 20Page: Packet Page 34 of 393 08/16/2012 Voucher List City of Edmonds 21 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133758 8/16/2012 (Continued)018950 LYNNWOOD AUTO PARTS INC Unit 19 - Lmp Bulbs (10) 511.000.657.548.680.310.00 9.10 9.5% Sales Tax 511.000.657.548.680.310.00 0.86 Fleet Supplies661221 Fleet Supplies 511.000.657.548.680.311.00 30.75 9.5% Sales Tax 511.000.657.548.680.311.00 2.92 Unit 139 - Oil Filter661284 Unit 139 - Oil Filter 511.000.657.548.680.310.00 5.46 9.5% Sales Tax 511.000.657.548.680.310.00 0.52 Unit 495 - Ignition Coil661433 Unit 495 - Ignition Coil 511.000.657.548.680.310.00 19.35 9.5% Sales Tax 511.000.657.548.680.310.00 1.84 Unit 23 - Spark Plugs661787 Unit 23 - Spark Plugs 511.000.657.548.680.310.00 7.32 9.5% Sales Tax 511.000.657.548.680.310.00 0.70 Unit 76 - Fuel Filter662539 Unit 76 - Fuel Filter 511.000.657.548.680.310.00 15.23 9.5% Sales Tax 511.000.657.548.680.310.00 1.45 Total :99.20 133759 8/16/2012 066191 MACLEOD RECKORD 6550 PROFESSIONAL SERVICES/CITY PARK PROFESSIONAL SERVICES~ 125.000.640.575.500.410.00 490.00 21Page: Packet Page 35 of 393 08/16/2012 Voucher List City of Edmonds 22 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :490.00133759 8/16/2012 066191 066191 MACLEOD RECKORD 133760 8/16/2012 071140 MAD SCIENCE OF KING COUNTY MADSCIENCE15195 MAD SCIENCE CAMP MAD SCIENCE CAMP #15195 001.000.640.574.200.410.00 2,616.00 Total :2,616.00 133761 8/16/2012 074133 MCCABE, SUE MCCABE0813 REFUND REFUND DUE TO MEDICAL REASONS 001.000.000.239.200.000.00 82.00 Total :82.00 133762 8/16/2012 020039 MCMASTER-CARR SUPPLY CO 33411216 123106800 STAINLESS COUPLING/HOIST RING 411.000.656.538.800.310.21 268.34 Freight 411.000.656.538.800.310.21 7.11 12310680033411282 CONDUIT FITTING/GREASE FITTINGS 411.000.656.538.800.310.21 254.98 Freight 411.000.656.538.800.310.21 5.54 Total :535.97 133763 8/16/2012 073865 MICHELS CORPORATION E1FI.Ret Release E1FI.RETAINAGE RELEASE E1FI.Retainage Release 412.200.000.223.400.000.00 3,259.01 Total :3,259.01 133764 8/16/2012 063773 MICROFLEX 00020759 07-12 TAX AUDIT PROGRAM TAX AUDIT PROGRAM 001.000.310.514.230.410.00 103.50 Total :103.50 133765 8/16/2012 020900 MILLERS EQUIP & RENT ALL INC 152637 CHAINSAW PARTS SPARK PLUGS,BAR TOOL MOUNTS 001.000.640.576.800.310.00 11.93 22Page: Packet Page 36 of 393 08/16/2012 Voucher List City of Edmonds 23 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133765 8/16/2012 (Continued)020900 MILLERS EQUIP & RENT ALL INC 9.5% Sales Tax 001.000.640.576.800.310.00 1.13 CHAIN SAW PARTS152720 BLADE BALANCER, GUARD,OIL CAP 001.000.640.576.800.310.00 19.90 9.5% Sales Tax 001.000.640.576.800.310.00 1.89 Total :34.85 133766 8/16/2012 074052 MOTHER NATURE'S ORGANICS INC 18109 X FIT PRODUCE BOXES PRODUCE BOXES FOR X FIT CAMP 001.000.640.574.200.310.00 1,024.00 Total :1,024.00 133767 8/16/2012 072833 MVP AUG 2012 AUGUST 2012 - EDMONDS PD CD OF POLICE AWARDS CEREMONY 001.000.410.521.100.310.00 150.00 Sales Tax 001.000.410.521.100.310.00 13.35 Total :163.35 133768 8/16/2012 064570 NATIONAL SAFETY INC 0325326-IN Sewer - GX2009 Gas W/ Charger Sewer - GX2009 Gas W/ Charger 411.000.655.535.800.310.00 1,251.00 Freight 411.000.655.535.800.310.00 12.54 9.5% Sales Tax 411.000.655.535.800.310.00 120.05 Sewer -Heavy Duty NTRLE Work Gloves0325950-IN Sewer -Heavy Duty NTRLE Work Gloves 411.000.655.535.800.310.00 480.00 9.5% Sales Tax 411.000.655.535.800.310.00 45.60 Total :1,909.19 23Page: Packet Page 37 of 393 08/16/2012 Voucher List City of Edmonds 24 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133769 8/16/2012 024302 NELSON PETROLEUM 0466843-IN Fleet Return Delo Oil Fleet Return Delo Oil 511.000.657.548.680.340.21 -1,286.38 9.5% Sales Tax 511.000.657.548.680.340.21 -122.21 Unit 138 - Filter0469267-IN Unit 138 - Filter 511.000.657.548.680.310.00 44.91 Inventory Filters 511.000.657.548.680.340.40 134.05 9.5% Sales Tax 511.000.657.548.680.310.00 4.27 9.5% Sales Tax 511.000.657.548.680.340.40 12.73 Fleet Filter Inventory0470803-IN Fleet Filter Inventory 511.000.657.548.680.340.40 131.07 9.5% Sales Tax 511.000.657.548.680.340.40 12.45 Fleet Filter Inventory0471864-IN Fleet Filter Inventory 511.000.657.548.680.340.40 50.47 9.5% Sales Tax 511.000.657.548.680.340.40 4.79 Fleet Filter Inventory0473657-IN Fleet Filter Inventory 511.000.657.548.680.340.40 107.56 9.5% Sales Tax 511.000.657.548.680.340.40 10.22 Unit 55 - Filters0474097-IN Unit 55 - Filters 511.000.657.548.680.310.00 114.09 9.5% Sales Tax 511.000.657.548.680.310.00 10.84 Unit 55 - Filters0474294-IN 24Page: Packet Page 38 of 393 08/16/2012 Voucher List City of Edmonds 25 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133769 8/16/2012 (Continued)024302 NELSON PETROLEUM Unit 55 - Filters 511.000.657.548.680.310.00 20.11 9.5% Sales Tax 511.000.657.548.680.310.00 1.91 Unit 106 - Filters0474387-IN Unit 106 - Filters 511.000.657.548.680.310.00 148.22 9.5% Sales Tax 511.000.657.548.680.310.00 14.08 Unit 18 - Filters0474742-IN Unit 18 - Filters 511.000.657.548.680.310.00 85.28 9.5% Sales Tax 511.000.657.548.680.310.00 8.10 Unit 31 - Filters0474862-IN Unit 31 - Filters 511.000.657.548.680.310.00 12.06 9.5% Sales Tax 511.000.657.548.680.310.00 1.14 Unit 11 - Filters0476797-IN Unit 11 - Filters 511.000.657.548.680.310.00 45.53 9.5% Sales Tax 511.000.657.548.680.310.00 4.33 Unit 9 Filters0478256-IN Unit 9 Filters 511.000.657.548.680.310.00 54.22 9.5% Sales Tax 511.000.657.548.680.310.00 5.15 Fleet Bulk Oil Inventory0478287-IN Fleet Bulk Oil Inventory 511.000.657.548.680.340.21 902.55 Filter Inventory 511.000.657.548.680.340.40 78.67 25Page: Packet Page 39 of 393 08/16/2012 Voucher List City of Edmonds 26 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133769 8/16/2012 (Continued)024302 NELSON PETROLEUM 9.5% Sales Tax 511.000.657.548.680.340.21 85.75 9.5% Sales Tax 511.000.657.548.680.340.40 7.47 Total :703.43 133770 8/16/2012 061013 NORTHWEST CASCADE INC 1-485663 CREDIT FOR HICKMAN PARK CREDIT FOR HICKMAN PARK 001.000.640.576.800.450.00 -3.00 HONEY BUCKET RENTAL1-507411 HONEY BUCKET RENTAL:CIVIC FIELD 001.000.640.576.800.450.00 194.62 Total :191.62 133771 8/16/2012 068769 NORTHWEST CASTER 1090798 Traffic -Paint Drum Dumper Parts for Traffic -Paint Drum Dumper Parts for 111.000.653.542.640.310.00 142.73 Freight 111.000.653.542.640.310.00 24.67 9.5% Sales Tax 111.000.653.542.640.310.00 15.90 Traffic -Paint Drum Dumper Parts for1090901 Traffic -Paint Drum Dumper Parts for 111.000.653.542.640.310.00 19.88 Freight 111.000.653.542.640.310.00 21.67 9.5% Sales Tax 111.000.653.542.640.310.00 3.95 Total :228.80 133772 8/16/2012 025690 NOYES, KARIN 000 00 315 Planning Board Minutes on 8/8/12. Planning Board Minutes on 8/8/12. 001.000.620.558.600.410.00 320.00 Total :320.00 26Page: Packet Page 40 of 393 08/16/2012 Voucher List City of Edmonds 27 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133773 8/16/2012 063511 OFFICE MAX INC 026025 CALENDAR WALL CALENDAR 001.000.640.574.100.310.00 17.20 9.5% Sales Tax 001.000.640.574.100.310.00 1.63 CALENDAR713716 FRONT DESK CALENDAR 001.000.640.574.100.310.00 5.00 9.5% Sales Tax 001.000.640.574.100.310.00 0.49 TONER, PENS831288 TONER FOR FRONT DESK PRINTER 001.000.640.574.100.310.00 141.80 9.5% Sales Tax 001.000.640.574.100.310.00 13.48 CALCULATOR883406 CALCULATOR 001.000.640.575.510.310.00 34.97 9.5% Sales Tax 001.000.640.575.510.310.00 3.31 DISCOVERY PROGRAM BINDER,BADGES887782 DISCOVERY PROGRAM BADGES & 001.000.640.574.350.310.00 25.43 9.5% Sales Tax 001.000.640.574.350.310.00 2.41 BATTERIES894228 AA BATTERIES 001.000.640.574.100.310.00 17.34 9.5% Sales Tax 001.000.640.574.100.310.00 1.65 Total :264.71 133774 8/16/2012 063511 OFFICE MAX INC 718511 DAF8 Drafting film. DAF8 Drafting film. 001.000.620.558.800.310.00 141.76 9.5% Sales Tax 27Page: Packet Page 41 of 393 08/16/2012 Voucher List City of Edmonds 28 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133774 8/16/2012 (Continued)063511 OFFICE MAX INC 001.000.620.558.800.310.00 13.47 Labelwriter 450 for reception desk.815327 Labelwriter 450 for reception desk. 001.000.620.558.800.310.00 104.99 9.5% Sales Tax 001.000.620.558.800.310.00 9.96 Total :270.18 133775 8/16/2012 063750 ORCA PACIFIC INC 057956 YOST POOL SUPPLIES YOST POOL SUPPLIES 001.000.640.576.800.310.00 623.50 9.5% Sales Tax 001.000.640.576.800.310.00 59.23 Total :682.73 133776 8/16/2012 027060 PACIFIC TOPSOILS 136969 DUMP FEES DUMP FEES 001.000.640.576.800.470.00 52.50 Total :52.50 133777 8/16/2012 027165 PARKER PAINT MFG. CO.INC.023029397 PAINT PAINT SUPPLIES 001.000.640.576.800.310.00 27.56 9.5% Sales Tax 001.000.640.576.800.310.00 2.62 Total :30.18 133778 8/16/2012 063951 PERTEET ENGINEERING INC 20100166.000-13 E2DB.SERVICES THRU 7/29/12 E2DB.Services thru 7/29/12 132.000.640.594.760.410.00 2,006.92 Total :2,006.92 133779 8/16/2012 070881 PIPE TOOL SPECIALTIES 2235 Sewer - Double hole Chain Assembly Sewer - Double hole Chain Assembly 411.000.655.535.800.310.00 590.00 28Page: Packet Page 42 of 393 08/16/2012 Voucher List City of Edmonds 29 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133779 8/16/2012 (Continued)070881 PIPE TOOL SPECIALTIES Freight 411.000.655.535.800.310.00 12.33 Total :602.33 133780 8/16/2012 028860 PLATT ELECTRIC SUPPLY INC 2039580 211958 STEEL CONDUIT 411.000.656.538.800.310.22 273.90 9.5% Sales Tax 411.000.656.538.800.310.22 26.02 2119582045117 ELECTRICAL SUPPLIES 411.000.656.538.800.310.22 161.31 9.5% Sales Tax 411.000.656.538.800.310.22 15.32 2119582068233 ELECTRICAL SUPPLIES 411.000.656.538.800.310.22 203.75 9.5% Sales Tax 411.000.656.538.800.310.22 19.36 2119582068309 BUSHING 411.000.656.538.800.310.22 124.60 9.5% Sales Tax 411.000.656.538.800.310.22 11.84 2119582072117 ELECTRICAL SUPPLIES 411.000.656.538.800.310.22 424.42 9.5% Sales Tax 411.000.656.538.800.310.22 40.32 2119582106490 STEEL CONDUIT/CVR BOX 411.000.656.538.800.310.22 541.64 9.5% Sales Tax 411.000.656.538.800.310.22 51.46 2119582109570 29Page: Packet Page 43 of 393 08/16/2012 Voucher List City of Edmonds 30 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133780 8/16/2012 (Continued)028860 PLATT ELECTRIC SUPPLY INC PIPE CLAMP 411.000.656.538.800.310.22 86.64 9.5% Sales Tax 411.000.656.538.800.310.22 8.23 2119582122812 RECPTACLE/ADAPTER PLATE/AMP 411.000.656.538.800.310.22 1,218.88 9.5% Sales Tax 411.000.656.538.800.310.22 115.79 2119582122820 ELECTRICAL SUPPLIES 411.000.656.538.800.310.22 75.24 9.5% Sales Tax 411.000.656.538.800.310.22 7.15 Total :3,405.87 133781 8/16/2012 072384 PLAY-WELL TEKNOLOGIES PLAYWELL16174 LEGO CAMPS LEGO CAMP #16174 001.000.640.574.200.410.00 1,875.00 LEGO CAMP #15166 001.000.640.574.200.410.00 2,875.00 Total :4,750.00 133782 8/16/2012 071811 PONY MAIL BOX & BUSINESS CTR 201973 Traffic Control -Radar Feed Back Sign Traffic Control -Radar Feed Back Sign 111.000.653.542.640.480.00 9.91 WATER SEWER STREET STORM-L&202336 Water Sewer Street Storm - L&I Safety 111.000.653.542.900.420.00 2.64 Water Sewer Street Storm - L&I Safety 411.000.652.542.900.420.00 2.64 Water Sewer Street Storm - L&I Safety 411.000.654.534.800.420.00 2.64 Water Sewer Street Storm - L&I Safety 411.000.655.535.800.420.00 2.62 30Page: Packet Page 44 of 393 08/16/2012 Voucher List City of Edmonds 31 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :20.45133782 8/16/2012 071811 071811 PONY MAIL BOX & BUSINESS CTR 133783 8/16/2012 029117 PORT OF EDMONDS 03870 CITY STORMWATER RENT TO PORT OF EDMONDS CITY STORMWATER RENT TO PORT OF EDMONDS 001.000.640.576.800.470.00 2,326.58 UNIT F1 B1 FUEL04371 Fire Boat - Fuel 511.000.657.548.680.320.00 81.82 Total :2,408.40 133784 8/16/2012 030780 QUIRING MONUMENTS INC 128794 MARKER MARKER: NYUTU 130.000.640.536.200.340.00 418.00 MARKER128983 MARKER: CUMMINGS 130.000.640.536.200.340.00 329.00 MARKER128984 MARKER: ALLYN 130.000.640.536.200.340.00 329.00 Total :1,076.00 133785 8/16/2012 074049 RICHARD, SCHAUSS TBD Refund 3.8.11 Out of Area TBD Refund 3.8.11 Out of Area TBD Refund 3.8.11 631.000.000.344.900.000.00 20.00 Out of area TBD Refund 3.9.12TBD Refund 3.9.12 Out of area TBD Refund 3.9.12 631.000.000.344.900.000.00 20.00 Total :40.00 133786 8/16/2012 006841 RICOH USA INC 5023459845 Meter charges for Engineering Dept. Meter charges for Engineering Dept. 001.000.620.558.800.450.00 185.05 Total :185.05 133787 8/16/2012 070042 RICOH USA INC 87472032 Rent on Engineering color copier Rent on Engineering color copier 001.000.620.558.800.450.00 443.48 31Page: Packet Page 45 of 393 08/16/2012 Voucher List City of Edmonds 32 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133787 8/16/2012 (Continued)070042 RICOH USA INC Rent on large copier R907EX for billing87472034 Rent on large copier R907EX for billing 001.000.620.558.800.450.00 827.00 Total :1,270.48 133788 8/16/2012 073930 RODMAN G MILLER STUDIO MILLER081012 FLOWER POLE ART 1ST AND 2ND PAYMENTS FOR ART ELEMENTS 127.200.640.573.200.410.00 1,980.00 Total :1,980.00 133789 8/16/2012 074129 ROSEN HARBOTTLE BLD20120506 Initial Valuation at intake included Initial Valuation at intake included 001.000.000.257.620.000.00 242.50 Total :242.50 133790 8/16/2012 073421 RUGG, CARL 5/22/12 ASE ASE Registration and Test Fees ASE Registration and Test Fees 511.000.657.548.680.490.00 66.00 Recertification Test Fees 511.000.657.548.680.490.00 90.00 Total :156.00 133791 8/16/2012 067003 SCHOETTLE, GEORGE 072512 WWTP FIRST AID TRAINING WWTP FIRST AID TRAINING 411.000.656.538.800.490.71 420.00 ENGR. FIRST AID TRAINING 001.000.620.532.200.490.00 90.00 Total :510.00 133792 8/16/2012 066964 SEATTLE AUTOMOTIVE DIST INC 03-047943 Fleet Return - Alternator Fleet Return - Alternator 511.000.657.548.680.310.00 -152.17 9.5% Sales Tax 511.000.657.548.680.310.00 -14.46 Unit 24 - Element, Filter03-179943 32Page: Packet Page 46 of 393 08/16/2012 Voucher List City of Edmonds 33 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133792 8/16/2012 (Continued)066964 SEATTLE AUTOMOTIVE DIST INC Unit 24 - Element, Filter 511.000.657.548.680.310.00 23.88 9.5% Sales Tax 511.000.657.548.680.310.00 2.27 Unit 24 - Trans Fluid03-179944 Unit 24 - Trans Fluid 511.000.657.548.680.310.00 63.12 9.5% Sales Tax 511.000.657.548.680.310.00 6.00 Unit 24 - Compressor03-180145 Unit 24 - Compressor 511.000.657.548.680.310.00 294.70 9.5% Sales Tax 511.000.657.548.680.310.00 28.00 Unit 95 - Filters03-180669 Unit 95 - Filters 511.000.657.548.680.310.00 106.93 9.5% Sales Tax 511.000.657.548.680.310.00 10.16 Unit 95 - Oil03-180747 Unit 95 - Oil 511.000.657.548.680.310.00 55.80 9.5% Sales Tax 511.000.657.548.680.310.00 5.30 Unit 126 - Parts03-181442 Unit 126 - Parts 511.000.657.548.680.310.00 49.33 9.5% Sales Tax 511.000.657.548.680.310.00 4.69 Unit 650 - V Belt03-181704 Unit 650 - V Belt 511.000.657.548.680.310.00 23.18 9.5% Sales Tax 511.000.657.548.680.310.00 2.20 33Page: Packet Page 47 of 393 08/16/2012 Voucher List City of Edmonds 34 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133792 8/16/2012 (Continued)066964 SEATTLE AUTOMOTIVE DIST INC Unit 650 - Front Arm Assembly,Spark03-181761 Unit 650 - Front Arm Assembly,Spark 511.000.657.548.680.310.00 287.50 9.5% Sales Tax 511.000.657.548.680.310.00 27.31 Unit 648 - Colling Motor,Wire Assembly03-182967 Unit 648 - Colling Motor,Wire Assembly 511.000.657.548.680.310.00 87.29 9.5% Sales Tax 511.000.657.548.680.310.00 8.29 Unit 36 - BR Cylinder03-183950 Unit 36 - BR Cylinder 511.000.657.548.680.310.00 190.73 9.5% Sales Tax 511.000.657.548.680.310.00 18.12 Unit 42 - Switch03-184088 Unit 42 - Switch 511.000.657.548.680.310.00 19.84 9.5% Sales Tax 511.000.657.548.680.310.00 1.88 Unit 277 - Battery03-184451 Unit 277 - Battery 511.000.657.548.680.310.00 79.92 9.5% Sales Tax 511.000.657.548.680.310.00 7.59 Total :1,237.40 133793 8/16/2012 007287 SNO CO ECONOMIC DEVELOP CNCL 200001330 AUGUST SUMMER NETWORKING August Summer Networking event 001.000.210.513.100.490.00 35.00 Total :35.00 133794 8/16/2012 037375 SNO CO PUD NO 1 2025-4064-7 8100 190TH ST SW 8100 190TH ST SW 001.000.640.576.800.470.00 31.68 34Page: Packet Page 48 of 393 08/16/2012 Voucher List City of Edmonds 35 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :31.68133794 8/16/2012 037375 037375 SNO CO PUD NO 1 133795 8/16/2012 037375 SNO CO PUD NO 1 2007-0685-1 TRAFFIC LIGHT 21200 84TH AVE W TRAFFIC LIGHT 21200 84TH AVE W 111.000.653.542.640.470.00 31.68 TRAFFIC LIGHT 961 PUGET DR2007-2302-1 TRAFFIC LIGHT 961 PUGET DR 111.000.653.542.640.470.00 37.03 PEDEST CAUTION LIGHT 9301 PUGET DR2014-3124-4 PEDEST CAUTION LIGHT 9301 PUGET DR 111.000.653.542.640.470.00 31.68 TRAFFIC LIGHT 21531 HWY 992014-4175-5 TRAFFIC LIGHT 21531 HWY 99 111.000.653.542.630.470.00 83.24 TRAFFIC LIGHT 21931 HWY 992022-8945-0 TRAFFIC LIGHT 21931 HWY 99 111.000.653.542.640.470.00 144.40 Total :328.03 133796 8/16/2012 037375 SNO CO PUD NO 1 120505912 2025-7952-0 VARIOUS LOCATIONS 411.000.656.538.800.475.66 8.35 2019-2988-2153536081 8421 244 SW/RICHMOND PARK 411.000.656.538.800.475.66 30.64 2002-0255-4156801783 24400 HIGHWAY 99/RICHMOND PARK 411.000.656.538.800.475.66 30.64 Total :69.63 133797 8/16/2012 006630 SNOHOMISH COUNTY I000307158 SOLID WASTE CHARGES SOLID WASTE CHARGES 001.000.640.576.800.470.00 1,407.00 Total :1,407.00 133798 8/16/2012 038300 SOUND DISPOSAL CO 103584 RECYCLING 35Page: Packet Page 49 of 393 08/16/2012 Voucher List City of Edmonds 36 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133798 8/16/2012 (Continued)038300 SOUND DISPOSAL CO RECYCLING 411.000.656.538.800.475.66 29.95 Total :29.95 133799 8/16/2012 039775 STATE AUDITOR'S OFFICE L94569 JULY-12 AUDIT FEES July-12 Audit Fees 001.000.390.519.900.510.00 1,539.91 July-12 Audit Fees 411.000.652.542.900.510.00 77.00 July-12 Audit Fees 411.000.654.534.800.510.00 256.65 July-12 Audit Fees 411.000.655.535.800.510.00 256.65 July-12 Audit Fees 411.000.656.538.800.510.00 256.65 July-12 Audit Fees 111.000.653.543.300.510.00 77.00 July-12 Audit Fees 511.000.657.548.680.510.00 102.66 Total :2,566.52 133800 8/16/2012 009400 STELLAR INDUSTRIAL SUPPLY INC 3163124 WATER/SEWER -BLUE UPSIDE DOWN PAINT WATER/SEWER -BLUE UPSIDE DOWN PAINT 411.000.654.534.800.310.00 144.59 WATER/SEWER -BLUE UPSIDE DOWN PAINT 411.000.655.535.800.310.00 144.58 9.5% Sales Tax 411.000.654.534.800.310.00 13.75 9.5% Sales Tax 411.000.655.535.800.310.00 13.73 WATER/ SEWER -SAFETY GLASSES3164255 WATER/ SEWER -SAFETY GLASSES 411.000.654.534.800.310.00 17.43 WATER/ SEWER -SAFETY GLASSES 411.000.655.535.800.310.00 17.42 36Page: Packet Page 50 of 393 08/16/2012 Voucher List City of Edmonds 37 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133800 8/16/2012 (Continued)009400 STELLAR INDUSTRIAL SUPPLY INC 9.5% Sales Tax 411.000.654.534.800.310.00 1.66 9.5% Sales Tax 411.000.655.535.800.310.00 1.65 Total :354.81 133801 8/16/2012 072319 SUNSET BAY RESORT LLC SUNSETBAY15305 BEACH CAMP BEACH CAMP AT SUNSET BAY #15305 001.000.640.574.200.410.00 9,600.00 Total :9,600.00 133802 8/16/2012 072555 SYSTEMS DESIGN WEST LLC ED0812 POSTAGE FOR PRIVATE STATEMENTS EMS Postage for private statements 001.000.390.526.100.420.00 0.45 Total :0.45 133803 8/16/2012 065578 SYSTEMS INTERFACE INC 13797.1 S12E39 VARIABLE SPEED DRIVE PANEL 414.000.656.594.320.410.10 -10,030.50 S12E3913802 C-322 ENERGY EFFICIENCY UPGRADE 414.000.656.594.320.410.10 10,983.40 Total :952.90 133804 8/16/2012 027269 THE PART WORKS INC 340647 FAUCET, ETC. FAUCET, ETC. 001.000.640.576.800.310.00 213.00 Freight 001.000.640.576.800.310.00 9.49 9.5% Sales Tax 001.000.640.576.800.310.00 21.15 Total :243.64 133805 8/16/2012 061233 TOWN & COUNTRY CHRYSLER 345707 Unit 791 - Blank Keys Unit 791 - Blank Keys 37Page: Packet Page 51 of 393 08/16/2012 Voucher List City of Edmonds 38 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133805 8/16/2012 (Continued)061233 TOWN & COUNTRY CHRYSLER 511.000.657.548.680.310.00 178.38 9.5% Sales Tax 511.000.657.548.680.310.00 16.95 Total :195.33 133806 8/16/2012 074068 TREMBLAY, ADRIAN XAVIER XAVIER0819 CITY PARK CONCERT CITY PARK CONCERT ON 8/19/12 117.100.640.573.100.410.00 800.00 Total :800.00 133807 8/16/2012 062693 US BANK 5923 ONLINE ADVERTISING PATCH PARKING FEE Online advertising AOL Patch July/Aug 001.000.240.513.110.440.00 728.94 Parking for Clifton while attending 001.000.610.519.700.490.00 6.00 Total :734.94 133808 8/16/2012 062693 US BANK 3181 INV#3181 08/06/12 - BARD -EDMONDS PD REG. WA ST CRIME PREVENT -LEE 001.000.410.521.400.490.00 75.00 CASE & HOLSTER FOR IPHONE 001.000.410.521.100.310.00 25.00 PVC PLASTIC CARDS 001.000.410.521.400.310.00 146.50 ID CARD PRINTER RIBBON 001.000.410.521.400.310.00 61.98 CASE & HOLSTER FOR IPHONE 001.000.410.521.100.310.00 25.20 HONEYWELL USB BAR SCANNERS 001.000.410.521.220.310.00 997.52 CANON CAMERA FOR PATROL 001.000.410.521.220.310.00 109.49 INV#3314 08/06/12 - LAWLESS -EDMONDS PD3314 PRESENTATION PAPER 001.000.410.521.100.310.00 15.32 38Page: Packet Page 52 of 393 08/16/2012 Voucher List City of Edmonds 39 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133808 8/16/2012 (Continued)062693 US BANK CANON CAMERA FOR M/A KIT 001.000.410.521.220.310.00 76.42 WRITABLE WRIST BANDS FOR M/A KIT 001.000.410.521.220.310.00 27.86 DISPOSABLE CUFFS FOR M/A KIT 001.000.410.521.220.310.00 73.67 S & W LEG IRONS FOR M/A KIT 001.000.410.521.220.310.00 79.90 STORAGE CASE FOR M/A KIT 001.000.410.521.220.310.00 103.25 CAMERA CASE & CARDS FOR M/A KIT 001.000.410.521.220.310.00 21.50 CANON SPEEDLITE FLASH 001.000.410.521.210.310.00 173.46 CANON EOS REBEL CAMERA 001.000.410.521.210.310.00 524.23 CANON FLOORSTANDING MONOPOD 001.000.410.521.210.310.00 36.94 CORE FOAM FOR PACKAGING 001.000.410.521.210.310.00 50.43 INV#3520 08/06/12 -TRAINING -EDMONDS PD3520 FEDEX CHG #10-1642 001.000.410.521.100.420.00 39.84 FEDEX CHG #12-1976,2272,1835 001.000.410.521.100.420.00 21.53 INV#7914 08/06/12 - THOMPSON-EDMONDS PD7914 FOOD HANDLERS CARD-THOMPSON 001.000.410.521.100.490.00 10.00 EXTRA CABINET KEYS 001.000.410.521.220.310.00 49.00 PELICAN CASE W/FOAM 001.000.410.521.210.310.00 143.08 SOLO HOT & COLD CUPS 001.000.410.521.100.310.00 91.13 39Page: Packet Page 53 of 393 08/16/2012 Voucher List City of Edmonds 40 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount (Continued)Total :2,978.25133808 8/16/2012 062693 062693 US BANK 133809 8/16/2012 062693 US BANK 2143 ASUS MONITORS, HP SERVERS,SEWER TR MONI Google application 001.000.310.518.880.310.00 20.00 Windows Secrets - e-zine subscription 001.000.310.518.880.490.00 100.00 TechSmith Corporation - software 001.000.310.518.880.310.00 99.00 BulkRegister -domain name registration 001.000.310.518.880.490.00 27.90 Newegg.com - 19"LCD Video Monitor for 411.000.655.535.800.310.00 248.98 Orange Computers - HP Proliant DL360 001.000.310.518.880.350.00 2,566.30 CablesAndKits.com -Open Frame Rack 001.000.310.518.880.350.00 655.70 BulkRegister -domain name registration 001.000.310.518.880.490.00 39.90 Orange Computers - Intel Pro/1000PT 001.000.310.518.880.350.00 893.99 TigerDirect.com - 22"Asus LED Monitors 001.000.230.512.501.490.00 619.16 TigerDirect.com - 22"Asus LED Monitors 001.000.230.512.500.490.00 1,238.33 GFOA CONFERENCE4831 GFOA -Certificate of Achievement for 001.000.310.514.100.490.00 505.00 Total :7,014.26 133810 8/16/2012 062693 US BANK 4675 CREDIT CARD TRANSACTIONS WALL COATING FOR HAZEL MILLER PLAZA 132.000.640.594.760.310.00 173.47 SKATING ADMISSION FEES FOR SENIOR 001.000.640.575.530.490.00 70.00 GASKET FILTER FOR FOUNTAIN 40Page: Packet Page 54 of 393 08/16/2012 Voucher List City of Edmonds 41 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133810 8/16/2012 (Continued)062693 US BANK 001.000.640.576.800.310.00 137.75 BUS FARE ADDED TO ORCA CARD FOR SENIOR 001.000.640.575.530.430.00 120.00 PRODUCE BOX FOR XFIT CAMP 001.000.640.574.200.310.00 1,024.00 Total :1,525.22 133811 8/16/2012 062693 US BANK 3686 EASC UPDATE EASC Snohomish County Update~ 001.000.210.513.100.490.00 35.00 August Mayor's Meeting 001.000.210.513.100.490.00 12.68 Total :47.68 133812 8/16/2012 062693 US BANK 2985 TRAINING/RANDOLPH/KRESTEL/~ TRAINING/RANDOLPH/KRESTEL/~ 411.000.656.538.800.490.71 184.40 KEYBOARD SKIN 411.000.656.538.800.310.41 48.85 Total :233.25 133813 8/16/2012 062693 US BANK 5593 CITY CLERK PURCHASE CARD Misc recorded documents 001.000.250.514.300.490.00 197.50 Recording of Utility Liens 411.000.654.534.800.490.00 186.00 Recording of Utility Liens 411.000.655.535.800.490.00 186.00 Total :569.50 133814 8/16/2012 062693 US BANK 3363 Rite Aide - Unit 16 - Battery Rite Aide - Unit 16 - Battery 511.000.657.548.680.310.00 6.56 Fisheries Supply - Unit 40 - Wiper 511.000.657.548.680.310.00 64.57 41Page: Packet Page 55 of 393 08/16/2012 Voucher List City of Edmonds 42 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133814 8/16/2012 (Continued)062693 US BANK NW Motorcycle School - Sittauer 511.000.657.548.680.490.00 1,095.00 Al's Auto - Unit 42 - Speedometer 511.000.657.548.680.310.00 104.03 OReilly Auto - Unit 413 -Wiper Blades 511.000.657.548.680.310.00 105.08 City of Edmonds Dev Svc- City Park3546 City of Edmonds Dev Svc- City Park 001.000.651.519.920.490.00 411.50 USPS - Sewer Dept - Cues Co.Camera 411.000.655.535.800.420.00 248.90 Total :2,035.64 133815 8/16/2012 062693 US BANK 6045 Digital Camera and accessories for Rob Digital Camera and accessories for Rob 001.000.620.558.600.350.00 240.77 Total :240.77 133816 8/16/2012 062693 US BANK 3389 Refreshments Council for Council Refreshments Council for Council 001.000.110.511.100.310.00 20.21 Plaque for Student Rep wall board 001.000.110.511.100.490.00 9.31 Total :29.52 133817 8/16/2012 044960 UTILITIES UNDERGROUND LOC CTR 2070116 utility locates utility locates 411.000.654.534.800.410.00 74.17 utility locates 411.000.655.535.800.410.00 74.17 utility locates 411.000.652.542.900.410.00 76.41 Total :224.75 133818 8/16/2012 047200 WA RECREATION & PARK ASSOC 12-410 MID YEAR TRADE SHOW REGISTRATION 42Page: Packet Page 56 of 393 08/16/2012 Voucher List City of Edmonds 43 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133818 8/16/2012 (Continued)047200 WA RECREATION & PARK ASSOC REGISTRATION FOR DEBBIE JOHNSON 001.000.640.574.100.490.00 129.00 Total :129.00 133819 8/16/2012 065035 WASHINGTON STATE PATROL I13000773 INV#I13000773 EDM301 -EDMONDS PD BACKGROUND CHECKS JULY 2012 001.000.000.237.100.000.00 82.50 Total :82.50 133820 8/16/2012 073552 WELCO SALES LLC 5595 INV#5595 - EDMONDS PD 1,000 DOMESTIC VIOLENCE FORMS 001.000.410.521.110.310.00 220.00 9.5% Sales Tax 001.000.410.521.110.310.00 20.90 INV#5596 - EDMONDS PD5596 3,000 FIR CARDS 001.000.410.521.110.310.00 175.00 9.5% Sales Tax 001.000.410.521.110.310.00 16.63 INV#5601 - EDMONDS PD5601 5,000 #10 ENVELOPES-POLICE 001.000.410.521.100.310.00 278.78 9.5% Sales Tax 001.000.410.521.100.310.00 26.48 Total :737.79 133821 8/16/2012 073552 WELCO SALES LLC 5587 REPRINT KESTREL BUSINESS CARDS REPRINT KESTREL BUSINESS CARDS 411.000.656.538.800.310.41 18.00 9.5% Sales Tax 411.000.656.538.800.310.41 1.71 Total :19.71 133822 8/16/2012 073552 WELCO SALES LLC 5597 500 sets of "Notice to Permittee for 500 sets of "Notice to Permittee for 43Page: Packet Page 57 of 393 08/16/2012 Voucher List City of Edmonds 44 8:10:12AM Page:vchlist Bank code :front Voucher Date Vendor Invoice PO #Description/Account Amount 133822 8/16/2012 (Continued)073552 WELCO SALES LLC 001.000.620.558.800.310.00 250.00 9.5% Sales Tax 001.000.620.558.800.310.00 23.75 Total :273.75 133823 8/16/2012 068106 WELCOME COMMUNICATIONS 7616 INV#7616 - EDMONDS PD STREAMLIGHT SL20X BATTERIES 001.000.410.521.220.310.00 406.80 Freight 001.000.410.521.220.310.00 24.13 9.5% Sales Tax 001.000.410.521.220.310.00 40.94 Total :471.87 Bank total :366,539.24133Vouchers for bank code :front 366,539.24Total vouchers :Vouchers in this report133 44Page: Packet Page 58 of 393 PROJECT NUMBERS (By Project Title) Funding Project Title Project Accounting Number Engineering Project Number FAC Edmonds Museum Exterior Repairs Project c327 E0LA FAC Senior Center Roof Repairs c332 E0LB General SR99 Enhancement Program c238 E6MA General SR104 Telecommunications Conduit Crossing c372 E1EA PM Dayton Street Plaza c276 E7MA PM Fourth Avenue Cultural Corridor c282 E8MA PM Interurban Trail c146 E2DB PM Marina Beach Additional Parking c290 E8MB PM Senior Center Parking Lot & Landscaping Improvements c321 E9MA STM 2012 Citywide Storm Drainage Improvements c382 E2FE STM Dayton Street & SR104 Storm Drainage Alternatives c374 E1FM STM Edmonds Marsh Feasibility Study c380 E2FC STM NPDES m013 E7FG STM Perrinville Creek Culvert Replacement c376 E1FN STM Public Facilities Water Quality Upgrades c339 E1FD STM Storm Contribution to Transportation Projects c341 E1FF STM Stormwater Development Review Support (NPDES Capacity)c349 E1FH STM Stormwater GIS Support c326 E0FC STM SW Edmonds-105th/106th Ave W Storm Improvements c336 E1FA STM Talbot Road/Perrinville Creek Drainage Improvements c307 E9FB STM Lake Ballinger Associated Projects 2012 c381 E2FD STM North Talbot Road Drainage Improvements c378 E2FA STM SW Edmonds Basin #3-238th St. SW to Hickman Park Infiltration System c379 E2FB STR 100th Ave W/Firdale Ave/238th St. SW/Traffic Signal Upgrade c329 E0AA STR 2009 Street Overlay Program c294 E9CA STR 2011 Residential Neighborhood Traffic Calming c343 E1AB STR 226th Street Walkway Project c312 E9DA STR 228th St. SW Corridor Improvements i005 E7AC STR 76th Ave W at 212th St SW Intersection Improvements c368 E1CA STR 76th Avenue West/75th Place West Walkway Project c245 E6DA STR 9th Avenue Improvement Project c392 E2AB STR Caspers/Ninth Avenue/Puget Drive (SR524) Walkway Project c256 E6DB STR Five Corners Roundabout (212th Street SW @ 84th Avenue W)c342 E1AA STR Main Street Lighting and Sidewalk Enhancements c265 E7AA Revised 8/16/2012Packet Page 59 of 393 PROJECT NUMBERS (By Project Title) Funding Project Title Project Accounting Number Engineering Project Number STR Shell Valley Emergency Access Road c268 E7CB STR Sunset Walkway Improvements c354 E1DA STR Transportation Plan Update c391 E2AA SWR 2012 Sanitary Sewer Comp Plan Update c369 E2GA SWR 2013 Sewerline Replacement Project c398 E3GA SWR Alder/Dellwood/Beach Pl/224th St. Sewer Replacement c347 E1GA SWR Alder Sanitary Sewer Pipe Rehabilitation c390 E2GB SWR BNSF Double Track Project c300 E8GC SWR City-Wide Sewer Improvements c301 E8GD SWR Lift Station 2 Improvements (Separated from L/s 13 - 09/01/08)c298 E8GA SWR OVD Sewer Lateral Improvements c142 E3GB SWR Sewer Lift Station Rehabilitation Design c304 E9GA SWR Sewer, Water, Stormwater Revenue Requirements Update c370 E1GB WTR 2010 Waterline Replacement Program c363 E0JA WTR 2011 Waterline Replacement Program c333 E1JA WTR 2012 Street Overlay Program c388 E2CA WTR 2012 Waterline Replacement Program c340 E1JE WTR 2013 Waterline Replacement Program c397 E3JA WTR 5th Avenue Overlay Project c399 E2CC WTR 76th Ave W Waterline Extension with Lynnwood c344 E1JB WTR AWD Intertie and Reservoir Improvements c324 E0IA WTR Edmonds General Facilities Charge Study c345 E1JC WTR Main Street Watermain c375 E1JK WTR OVD Watermain Improvements c141 E3JB WTR Pioneer Way Road Repair c389 E2CB WTR PRV Station 11 and 12 Abandonment c346 E1JD Revised 8/16/2012Packet Page 60 of 393 PROJECT NUMBERS (By Engineering Number) Funding Engineering Project Number Project Accounting Number Project Title STR E0AA c329 100th Ave W/Firdale Ave/238th St. SW/Traffic Signal Upgrade STM E0FC c326 Stormwater GIS Support WTR E0IA c324 AWD Intertie and Reservoir Improvements WTR E0JA c363 2010 Waterline Replacement Program FAC E0LA c327 Edmonds Museum Exterior Repairs Project FAC E0LB c332 Senior Center Roof Repairs STR E1AA c342 Five Corners Roundabout (212th Street SW @ 84th Avenue W) STR E1AB c343 2011 Residential Neighborhood Traffic Calming STR E1CA c368 76th Ave W at 212th St SW Intersection Improvements STR E1DA c354 Sunset Walkway Improvements General E1EA c372 SR104 Telecommunications Conduit Crossing STM E1FA c336 SW Edmonds-105th/106th Ave W Storm Improvements STM E1FD c339 Public Facilities Water Quality Upgrades STM E1FF c341 Storm Contribution to Transportation Projects STM E1FH c349 Stormwater Development Review Support (NPDES Capacity) STM E1FM c374 Dayton Street & SR104 Storm Drainage Alternatives STM E1FN c376 Perrinville Creek Culvert Replacement SWR E1GA c347 Alder/Dellwood/Beach Pl/224th St. Sewer Replacement SWR E1GB c370 Sewer, Water, Stormwater Revenue Requirements Update WTR E1JA c333 2011 Waterline Replacement Program WTR E1JB c344 76th Ave W Waterline Extension with Lynnwood WTR E1JC c345 Edmonds General Facilities Charge Study WTR E1JD c346 PRV Station 11 and 12 Abandonment WTR E1JE c340 2012 Waterline Replacement Program WTR E1JK c375 Main Street Watermain STR E2AA c391 Transportation Plan Update STR E2AB c392 9th Avenue Improvement Project WTR E2CA c388 2012 Street Overlay Program WTR E2CB c389 Pioneer Way Road Repair WTR E2CC c399 5th Avenue Overlay Project PM E2DB c146 Interurban Trail STM E2FA c378 North Talbot Road Drainage Improvements STM E2FB c379 SW Edmonds Basin #3-238th St. SW to Hickman Park Infiltration System STM E2FC c380 Edmonds Marsh Feasibility Study STM E2FD c381 Lake Ballinger Associated Projects 2012 STM E2FE c382 2012 Citywide Storm Drainage Improvements Revised 8/16/2012Packet Page 61 of 393 PROJECT NUMBERS (By Engineering Number) Funding Engineering Project Number Project Accounting Number Project Title SWR E2GA c369 2012 Sanitary Sewer Comp Plan Update SWR E2GB c390 Alder Sanitary Sewer Pipe Rehabilitation SWR E3GA c398 2013 Sewerline Replacement Project SWR E3GB c142 OVD Sewer Lateral Improvements WTR E3JA c397 2013 Waterline Replacement Program WTR E3JB c141 OVD Watermain Improvements STR E6DA c245 76th Avenue West/75th Place West Walkway Project STR E6DB c256 Caspers/Ninth Avenue/Puget Drive (SR524) Walkway Project General E6MA c238 SR99 Enhancement Program STR E7AA c265 Main Street Lighting and Sidewalk Enhancements STR E7AC i005 228th St. SW Corridor Improvements STR E7CB c268 Shell Valley Emergency Access Road STM E7FG m013 NPDES PM E7MA c276 Dayton Street Plaza SWR E8GA c298 Lift Station 2 Improvements (Separated from L/s 13 - 09/01/08) SWR E8GC c300 BNSF Double Track Project SWR E8GD c301 City-Wide Sewer Improvements PM E8MA c282 Fourth Avenue Cultural Corridor PM E8MB c290 Marina Beach Additional Parking STR E9CA c294 2009 Street Overlay Program STR E9DA c312 226th Street Walkway Project STM E9FB c307 Talbot Road/Perrinville Creek Drainage Improvements SWR E9GA c304 Sewer Lift Station Rehabilitation Design PM E9MA c321 Senior Center Parking Lot & Landscaping Improvements Revised 8/16/2012Packet Page 62 of 393 PROJECT NUMBERS (By New Project Accounting Number) Funding Project Accounting Number Engineering Project Number Project Title WTR c141 E3JB OVD Watermain Improvements SWR c142 E3GB OVD Sewer Lateral Improvements PM c146 E2DB Interurban Trail General c238 E6MA SR99 Enhancement Program STR c245 E6DA 76th Avenue West/75th Place West Walkway Project STR c256 E6DB Caspers/Ninth Avenue/Puget Drive (SR524) Walkway Project STR c265 E7AA Main Street Lighting and Sidewalk Enhancements STR c268 E7CB Shell Valley Emergency Access Road PM c276 E7MA Dayton Street Plaza PM c282 E8MA Fourth Avenue Cultural Corridor PM c290 E8MB Marina Beach Additional Parking STR c294 E9CA 2009 Street Overlay Program SWR c298 E8GA Lift Station 2 Improvements (Separated from L/s 13 - 09/01/08) SWR c300 E8GC BNSF Double Track Project SWR c301 E8GD City-Wide Sewer Improvements SWR c304 E9GA Sewer Lift Station Rehabilitation Design STM c307 E9FB Talbot Road/Perrinville Creek Drainage Improvements STR c312 E9DA 226th Street Walkway Project PM c321 E9MA Senior Center Parking Lot & Landscaping Improvements WTR c324 E0IA AWD Intertie and Reservoir Improvements STM c326 E0FC Stormwater GIS Support FAC c327 E0LA Edmonds Museum Exterior Repairs Project STR c329 E0AA 100th Ave W/Firdale Ave/238th St. SW/Traffic Signal Upgrade FAC c332 E0LB Senior Center Roof Repairs WTR c333 E1JA 2011 Waterline Replacement Program STM c336 E1FA SW Edmonds-105th/106th Ave W Storm Improvements STM c339 E1FD Public Facilities Water Quality Upgrades WTR c340 E1JE 2012 Waterline Replacement Program STM c341 E1FF Storm Contribution to Transportation Projects STR c342 E1AA Five Corners Roundabout (212th Street SW @ 84th Avenue W) STR c343 E1AB 2011 Residential Neighborhood Traffic Calming WTR c344 E1JB 76th Ave W Waterline Extension with Lynnwood WTR c345 E1JC Edmonds General Facilities Charge Study Revised 8/16/2012Packet Page 63 of 393 PROJECT NUMBERS (By New Project Accounting Number) Funding Project Accounting Number Engineering Project Number Project Title WTR c346 E1JD PRV Station 11 and 12 Abandonment SWR c347 E1GA Alder/Dellwood/Beach Pl/224th St. Sewer Replacement STM c349 E1FH Stormwater Development Review Support (NPDES Capacity) STR c354 E1DA Sunset Walkway Improvements WTR c363 E0JA 2010 Waterline Replacement Program STR c368 E1CA 76th Ave W at 212th St SW Intersection Improvements SWR c369 E2GA 2012 Sanitary Sewer Comp Plan Update SWR c370 E1GB Sewer, Water, Stormwater Revenue Requirements Update General c372 E1EA SR104 Telecommunications Conduit Crossing STM c374 E1FM Dayton Street & SR104 Storm Drainage Alternatives WTR c375 E1JK Main Street Watermain STM c376 E1FN Perrinville Creek Culvert Replacement STM c378 E2FA North Talbot Road Drainage Improvements STM c379 E2FB SW Edmonds Basin #3-238th St. SW to Hickman Park Infiltration System STM c380 E2FC Edmonds Marsh Feasibility Study STM c381 E2FD Lake Ballinger Associated Projects 2012 STM c382 E2FE 2012 Citywide Storm Drainage Improvements WTR c388 E2CA 2012 Street Overlay Program WTR c389 E2CB Pioneer Way Road Repair SWR c390 E2GB Alder Sanitary Sewer Pipe Rehabilitation STR c391 E2AA Transportation Plan Update STR c392 E2AB 9th Avenue Improvement Project WTR c397 E3JA 2013 Waterline Replacement Program SWR c398 E3GA 2013 Sewerline Replacement Project WTR c399 E2CC 5th Avenue Overlay Project STR i005 E7AC 228th St. SW Corridor Improvements STM m013 E7FG NPDES Revised 8/16/2012Packet Page 64 of 393 PROJECT NUMBERS (By Project Title) Funding Project Title Project Accounting Number Engineering Project Number STR 100th Ave W/Firdale Ave/238th St. SW/Traffic Signal Upgrade c329 E0AA STR 2009 Street Overlay Program c294 E9CA WTR 2010 Waterline Replacement Program c363 E0JA STR 2011 Residential Neighborhood Traffic Calming c343 E1AB WTR 2011 Waterline Replacement Program c333 E1JA STM 2012 Citywide Storm Drainage Improvements c382 E2FE SWR 2012 Sanitary Sewer Comp Plan Update c369 E2GA WTR 2012 Street Overlay Program c388 E2CA WTR 2012 Waterline Replacement Program c340 E1JE SWR 2013 Sewerline Replacement Project c398 E3GA WTR 2013 Waterline Replacement Program c397 E3JA STR 226th Street Walkway Project c312 E9DA STR 228th St. SW Corridor Improvements i005 E7AC WTR 5th Ave Overlay Project c399 E2CC STR 76th Ave W at 212th St SW Intersection Improvements c368 E1CA WTR 76th Ave W Waterline Extension with Lynnwood c344 E1JB STR 76th Avenue West/75th Place West Walkway Project c245 E6DA STR 9th Avenue Improvement Project c392 E2AB SWR Alder Sanitary Sewer Pipe Rehabilitation c390 E2GB SWR Alder/Dellwood/Beach Pl/224th St. Sewer Replacement c347 E1GA WTR AWD Intertie and Reservoir Improvements c324 E0IA SWR BNSF Double Track Project c300 E8GC STR Caspers/Ninth Avenue/Puget Drive (SR524) Walkway Project c256 E6DB SWR City-Wide Sewer Improvements c301 E8GD STM Dayton Street & SR104 Storm Drainage Alternatives c374 E1FM PM Dayton Street Plaza c276 E7MA WTR Edmonds General Facilities Charge Study c345 E1JC STM Edmonds Marsh Feasibility Study c380 E2FC FAC Edmonds Museum Exterior Repairs Project c327 E0LA STR Five Corners Roundabout (212th Street SW @ 84th Avenue W)c342 E1AA PM Fourth Avenue Cultural Corridor c282 E8MA PM Interurban Trail c146 E2DB STM Lake Ballinger Associated Projects 2012 c381 E2FD SWR Lift Station 2 Improvements (Separated from L/s 13 - 09/01/08)c298 E8GA Revised 8/16/2012Packet Page 65 of 393 PROJECT NUMBERS (By Project Title) Funding Project Title Project Accounting Number Engineering Project Number STR Main Street Lighting and Sidewalk Enhancements c265 E7AA WTR Main Street Watermain c375 E1JK PM Marina Beach Additional Parking c290 E8MB STM North Talbot Road Drainage Improvements c378 E2FA STM NPDES m013 E7FG SWR OVD Sewer Lateral Improvements c142 E3GB WTR OVD Watermain Improvements c141 E3JB STM Perrinville Creek Culvert Replacement c376 E1FN WTR Pioneer Way Road Repair c389 E2CB WTR PRV Station 11 and 12 Abandonment c346 E1JD STM Public Facilities Water Quality Upgrades c339 E1FD PM Senior Center Parking Lot & Landscaping Improvements c321 E9MA FAC Senior Center Roof Repairs c332 E0LB SWR Sewer Lift Station Rehabilitation Design c304 E9GA SWR Sewer, Water, Stormwater Revenue Requirements Update c370 E1GB STR Shell Valley Emergency Access Road c268 E7CB General SR104 Telecommunications Conduit Crossing c372 E1EA General SR99 Enhancement Program c238 E6MA STM Storm Contribution to Transportation Projects c341 E1FF STM Stormwater Development Review Support (NPDES Capacity)c349 E1FH STM Stormwater GIS Support c326 E0FC STR Sunset Walkway Improvements c354 E1DA STM SW Edmonds Basin #3-238th St. SW to Hickman Park Infiltration System c379 E2FB STM SW Edmonds-105th/106th Ave W Storm Improvements c336 E1FA STM Talbot Road/Perrinville Creek Drainage Improvements c307 E9FB STR Transportation Plan Update c391 E2AA Revised 8/16/2012Packet Page 66 of 393 PROJECT NUMBERS (Phase and Task Numbers) Phases and Tasks (Engineering Division) Phase Title ct Construction ds Design pl Preliminary sa Site Acquisition & Prep st Study ro Right-of-Way Task Title 196 Traffic Engineering & Studies 197 MAIT 198 CTR 199 Engineering Plans & Services 950 Engineering Staff Time 970 Construction Management 981 Contract 990 Miscellaneous 991 Retainage stm Engineering Staff Time-Storm str Engineering Staff Time-Street swr Engineering Staff Time-Sewer wtr Engineering Staff Time-Water prk Engineering Staff Time-Park Packet Page 67 of 393    AM-5052     4. E.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Phil Williams Submitted By:Kody McConnell Department:Public Works Committee: Type: Action Information Subject Title Interlocal Cooperation Agreement for Public Safety Boat Maintenance and Repair Services between the City of Edmonds and Snohomish County Fire District #1. Recommendation It is recommended the City Council approve this interlocal cooperation agreement. Previous Council Action On May 15, 2012, the City Council approved the transfer of ownership of Marine 16 (fire service boat) to Snohomish County Fire District No. 1. On August 14, 2012, the Finance Committee approved this interlocal agreement for presentation to the City Council. Narrative The attached interlocal cooperation agreement sets out the terms and conditions of maintenance and repair services to be performed by the City of Edmonds for Marine 16 on behalf of Snohomish County Fire District No. 1  Fiscal Impact Fiscal Year:2012 Revenue:Expenditure: Fiscal Impact: This is a fee for service agreement between the parties with all costs recouped.  Attachments Interlocal Agreement Form Review Inbox Reviewed By Date City Clerk Sandy Chase 08/15/2012 02:53 PM Mayor Dave Earling 08/15/2012 03:05 PM Finalize for Agenda Sandy Chase 08/15/2012 03:07 PM Form Started By: Kody McConnell Started On: 08/15/2012 02:45 PM Final Approval Date: 08/15/2012  Packet Page 68 of 393 Final Approval Date: 08/15/2012  Packet Page 69 of 393 Interlocal Cooperation Agreement for PUBLIC SAFETY BOAT MAINTENANCE AND REPAIR SERVICES between THE CITY OF EDMONDS and SNOHOMISH COUNTY FIRE DISTRICT #1 THIS INTERLOCAL AGREEMENT (“Agreement”) is entered into under the authority of the Interlocal Cooperation Act, Chapter 39.34 RCW, between the City of Edmonds (“the City”), a municipal corporation organized under the laws of the State of Washington, and the Snohomish County Fire District #1 (“the District”), a special service district organized under the laws of the State of Washington (collectively “the Parties”), to provide for the periodic maintenance and repair of the Public Safety Boat owned by the District, and to define the Parties’ respective rights, obligations, costs, and liabilities regarding this undertaking. WHEREAS, Chapter 39.34 RCW authorizes two or more subdivisions of local government of the State of Washington to cooperate on a basis of mutual advantage to provide for services and facilities; WHEREAS, the Parties executed an Interlocal Agreement for Fire and Emergency Medical Services (“Consolidation Agreement”) on November 3, 2009; WHEREAS, the Parties executed a First Amendment to the Consolidation Agreement (“Amendment”) on May 22, 2012, which provides for the transfer of ownership, maintenance and repair responsibility for the Public Safety Boat known as Marine 16 (“the Vessel”) to the District, and further provides that the City will provide certain maintenance and repair services for the Vessel upon the District’s request; WHEREAS, the Parties mutually desire to establish a formal arrangement under which the City will provide these maintenance and repair services for the Vessel; WHEREAS, the Parties desire to enter into this Agreement for the purpose of defining their respective rights, obligations, costs, and liabilities regarding this undertaking; WHEREAS, the City Council of the City of Edmonds has taken appropriate action to approve Edmond’s entry into this Interlocal Agreement; and WHEREAS, the Board of Commissioners of Snohomish County Fire District #1 has taken appropriate action to approve the District’s entry into this Interlocal Agreement; NOW, THEREFORE, in consideration of the terms, conditions, and covenants contained herein, or attached hereto and incorporated herein by reference, the Parties agree as follows: Section 1. Purpose. The purpose of this Agreement is to establish a formal arrangement under which the City will provide certain maintenance and repair services for the Vessel. The terms, conditions, and covenants of this Agreement shall accordingly be interpreted to advance this purpose. This Agreement further seeks to allocate and define the Parties’ respective rights, obligations, costs, and liabilities concerning the establishment, operation, and maintenance of this undertaking. Packet Page 70 of 393 Section 2. Term. This Agreement shall be effective July 1st, 2012, after full execution by the Parties hereto. This Agreement shall remain in effect for one year and shall automatically renew for continuous one year periods of time unless terminated in accordance with Section 3 of the Agreement or revised by a writing signed by both Parties. Section 3. Termination. Either Party may terminate this Agreement with or without cause by providing the other Party with thirty (30) days written notice of its intent to terminate. Termination shall not alter the District’s payment obligations under Section 6 for services already rendered and shall not alter the Parties’ respective obligations under Section 11 of this Agreement. Section 4. Obligations of the Parties. A. The City shall provide maintenance and repair services for the Vessel upon the District’s request. Such maintenance and repair services may include, but are not limited to, oil changing, engine tuning, equipment rotation, replacement and adjustment, and other services as requested by the District and expressly agreed to by the City. B. The City shall seek approval from the District for any repairs that are in addition to the originally requested repairs. Approval shall be sought before any repairs are performed on the vessel. Unapproved work shall be at the expense of the City and excluded from Section 4.C and D, and Section 5. C. The City shall charge the District for all services performed pursuant to this Agreement in accordance with Section 5 of this Agreement. D. The District shall pay the City in accordance with Section 5 of this Agreement for all maintenance and repair services performed by the City. Section 5. Payment Schedule. The Parties agree to the following billing and payment schedule: A. The City shall charge the District the City’s normal hourly shop rate for labor, plus the costs for replacement parts and materials, for the maintenance and repair services performed under this Agreement. Replacement of parts and materials, including but not limited to oil and other fluids, shall be billed separately to the District at cost plus any shipping and handling expense incurred by the City. Any disposal fee incurred by the City in disposing of parts and materials from the Vessel, including but not limited to any hazardous waste disposal charge, shall likewise be billed separately to the District at cost. B. Within 14 days after completing a maintenance or repair project on the Vessel pursuant to this Agreement, the City shall submit an itemized invoice to the District listing the tasks completed, the hours expended, the parts and materials replaced, and the total charge to the District. C. Within 30 days of receiving an invoice pursuant to subsection B above, the District shall tender full payment to the City for the full amount due under said invoice. Section 6. Ownership and Disposition of Property. Any mechanical part on the Vessel removed and/or replaced by the City pursuant to this Agreement, other than oil filters, air filters, and windshield Packet Page 71 of 393 wiper blades, shall remain the legal property of the District and shall be retained, discarded, or otherwise disposed of by the City only with the consent of the District. Section 7. Administration: No Separate Entity Created. No separate legal entity is formed by this Agreement. Section 8. Release, Indemnification, and Hold Harmless Agreement. A. The City agrees to protect, indemnify, and save the District harmless from and against any and all injury or damage to the District or its property, and also from and against all claims, demands, and causes of action of every kind and character arising directly or indirectly, or in any way incident to, in connection with, or arising out of work performed under the terms hereof, caused by the fault of the City, its agents, employees, representatives, or subcontractors. The City specifically promises to indemnify the District against claims and suits brought under Title 51 RCW by the City’s employees or subcontractors and waives any immunity that the City may have under that title with respect to, but only to, the limited extent necessary to indemnify the District. The City shall also indemnify and hold the District harmless for any wage, overtime, or benefit claim of any City employee, agent, representative, or subcontractor performing services under this Agreement. The City further agrees to fully indemnify the District from and against any and all costs of defending any such claim or demand to the end that the District is held harmless therefrom. This paragraph shall not apply to damages or claims resulting from the sole negligence of the District. In situations involving the sole negligence of the District or its employees, the Parties’ respective liabilities shall be defined by the law of the State of Washington. B. The District agrees to protect, indemnify, and save the City harmless from and against any and all injury or damage to the City or its property, and also from and against all claims, demands, and causes of action of every kind and character arising directly or indirectly, or in any way incident to, in connection with, or arising out of work performed under the terms hereof, caused by the fault of the District, its agents, employees, representatives, or subcontractors. The District specifically promises to indemnify the City against claims or suits brought under Title 51 RCW by the District’s employees or subcontractors and waives any immunity that the District may have under that Title with respect to, but only to, the limited extend necessary to indemnify the City. The District shall also indemnify and hold the City harmless from any wage, overtime or benefit claim of any District employee, agent, representative, or subcontractor performing services under this Agreement. The District further agrees to fully indemnify the City from and against any and all costs of defending any such claim or demand to the end that the City is held harmless therefrom. This paragraph shall not apply to damages or claims resulting from the sole negligence of the City. In situations involving the sole negligence of the City or its employees, the Parties’ respective liability shall be defined by the law of the State of Washington. Section 9. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Washington. Any action arising out of this Agreement shall be brought in Snohomish County Superior Court. The substantially prevailing party in such action shall be awarded its reasonable attorneys’ fees and costs. Packet Page 72 of 393 Section 10. No Employment Relationship Created. The Parties agree that nothing in this Agreement shall be construed to create an employment relationship between the City and any employee, agent, representative, or contractor of the District, or between the District and any employee, agent, representative, or contractor of the City. Section 11. Notice. Notices to the City shall be sent to the following address: City of Edmonds, Washington Director of Public Works & Utilities 7110 210th Street SW Edmonds, WA 98206 Notices to the District shall be sent to the following address: Snohomish County Fire District #1 Administrative Headquarters and Training Center 12425 Meridian Avenue Everett, WA 98208 Section 12. Duty to File Agreement With County Auditor. The District shall, after this Agreement is executed by both Parties file this Agreement with the Snohomish County Auditor. Section 13. Integration. This document constitutes the entire embodiment of the agreement between the Parties, and, unless modified in writing by an amendment to this Interlocal Cooperation Agreement signed by the Parties hereto, shall be implemented as described above. CITY OF EDMONDS SNOHOMISH COUNTY FIRE DISTRICT #1 By:______________________________ By:______________________________ Dave O. Earling David Chan Mayor of the City of Edmonds Chair of the Board of Commissioners Date: ____________________________ Date:____________________________ Attest/Authenticated: Attest/Authenticated: By:______________________________ By:______________________________ Sandra S. Chase, City Clerk Approved as to form: By:______________________________ Office of the City Attorney Packet Page 73 of 393    AM-5080     4. F.              City Council Meeting Meeting Date:08/21/2012 Time:5 Minutes   Submitted For:Phil Williams Submitted By:Kody McConnell Department:Public Works Committee: Type: Action Information Subject Title Authorization to Sell One (1) 2002 Dodge Stratus. Recommendation It is recommended that authorization be given to the Public Works Department to contract with James G. Murphy Auctioneers to sell One (1) 2002 Dodge Stratus. (VIN# 1B3AL36R22N231251) Previous Council Action None.  Narrative The Police Department has declared Unit 251-POL to be surplus due to the elimination of the Assistant Police Chief position.  Fiscal Impact Fiscal Year:2012 Revenue:2500 Expenditure: Fiscal Impact: Monies will be deposited into B-Fund Replacement Account.  Form Review Inbox Reviewed By Date City Clerk Linda Hynd 08/16/2012 05:00 PM Mayor Dave Earling 08/17/2012 08:43 AM Finalize for Agenda Linda Hynd 08/17/2012 09:00 AM Form Started By: Kody McConnell Started On: 08/16/2012 04:40 PM Final Approval Date: 08/17/2012  Packet Page 74 of 393    AM-5079     4. G.              City Council Meeting Meeting Date:08/21/2012 Time:5 Minutes   Submitted For:Phil Williams Submitted By:Kody McConnell Department:Public Works Committee: Type: Action Information Subject Title Authorization to Sell Unit 047-STR (1973 Asphalt Tack Wagon) Recommendation It is recommended that authorization be given to the Public Works & Utilities Department to contract with James G. Murphy Auctioneers to sell one (1) asphalt tack wagon. Previous Council Action None.  Narrative Unit 047-STR was purchased in 1973 as a storage tank to heat up asphalt tack.  The Street Division no longer uses this method of storing and heating asphalt tack.  The Street Division has declared this unit surplus.  Fiscal Impact Fiscal Year:2012 Revenue:100 Expenditure: Fiscal Impact: Monies will be deposited into B-Fund Replacement Account.  Form Review Inbox Reviewed By Date City Clerk Linda Hynd 08/16/2012 05:00 PM Mayor Dave Earling 08/17/2012 08:44 AM Finalize for Agenda Linda Hynd 08/17/2012 09:00 AM Form Started By: Kody McConnell Started On: 08/16/2012 04:39 PM Final Approval Date: 08/17/2012  Packet Page 75 of 393    AM-5078     4. H.              City Council Meeting Meeting Date:08/21/2012 Time:5 Minutes   Submitted For:Phil Williams Submitted By:Kody McConnell Department:Public Works Committee: Type: Action Information Subject Title Authorization to contract with James G. Murphy Auctioneers to sell surplus city vehicles. Recommendation It is recommended that authorization be given to the Public Works Department to contract with James G. Murphy Auctioneers to Sell Surplus City Vehicles. Previous Council Action None.  Narrative Previously, the City has utilized the services of James G. Murphy Auctioneers to sell surplus City vehicles and equipment.  This has proven in the past to be a cost-effective and efficient method of managing surplus items. The following vehicles are to be auctioned as surplus: Unit # 336-POL 2008 Ford Crown Victoria VIN# 2FAHP71VX8X175036 Unit # 650-POL 2008 Ford Crown Victoria VIN# 2FAHP71VX8X145650 Fiscal Impact Fiscal Year:2012 Revenue:8,000 Expenditure: Fiscal Impact:  Monies will be deposited into the B-Fund Replacement Account Form Review Inbox Reviewed By Date City Clerk Linda Hynd 08/16/2012 05:00 PM Mayor Dave Earling 08/17/2012 08:44 AM Finalize for Agenda Linda Hynd 08/17/2012 09:00 AM Form Started By: Kody McConnell Started On: 08/16/2012 04:37 PM Packet Page 76 of 393 Final Approval Date: 08/17/2012  Packet Page 77 of 393    AM-5041     4. I.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Shawn Hunstock Submitted By:Sarah Mager Department:Finance Committee: Type: Information Information Subject Title Banking Request for Proposals Recommendation N/A Previous Council Action Narrative Finance is in the process of issuing a Banking RFP requesting proposals for its primary banking services.  The RFP will be sent out to qualified banks that are located in the local Edmonds area, advertised in the Everett Herald and the Daily Journal of Commerce, as well as posted on the City's website.  It is expected that the Banking RFP will be issued on August 15th, 2012, deadline for proposals on October 5th, 2012, and implementation of a banking services agreement on December 6th, 2012.  Attachments City of Edmonds Banking RFP Form Review Inbox Reviewed By Date Finance Shawn Hunstock 08/15/2012 11:50 AM City Clerk Sandy Chase 08/15/2012 12:00 PM Mayor Dave Earling 08/15/2012 12:20 PM Finalize for Agenda Sandy Chase 08/15/2012 02:00 PM Form Started By: Sarah Mager Started On: 08/15/2012 09:04 AM Final Approval Date: 08/15/2012  Packet Page 78 of 393 Request for Proposal (RFP) for: Banking Services City of Edmonds Finance Department 121 5th Avenue N. Edmonds, WA 98020 Packet Page 79 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 2 of 22 I. PURPOSE OF REQUEST The City of Edmonds (“City”) is requesting proposals for its primary banking services. The City’s needs are outlined in the following Request for Proposal (“RFP”). II. BID PROCESS The City will attempt to follow this timetable, which should result in the implementation of a banking services agreement by December 6th, 2012  Issue RFP August 15th, 2012  Deadline for Submittal of Proposals - 4:00 p.m. October 5th, 2012  Interview with Selected Firms October 17th, 2012 (if necessary)  Preliminary Selection of Firm November 6th, 2012  Recommendation to City Council November 13th, 2012  Implementation of Banking Services Agreement December 6th, 2012 III. MINIMUM QUALIFICATIONS To be considered for selection, financial institutions must meet at least the following minimum qualifications: A. Authority to offer banking services. Institution must hold a charter from either the United States Government or the State of Washington. B. Access to the Federal Reserve System. Institution must be a member of (or have access to) the Federal Reserve System and have access to all Federal Reserve System services. C. Legal Compliance. Institution must be in compliance with all applicable laws, rules, regulations, and ordinances of the City of Edmonds, the State of Washington, and the United States D. Public Deposit Protection Act. Institution must be a Washington State qualified depository for public funds and must be in compliance with the Washington Public Deposit Protection Act (RCW 39.58). E. Local banking office. Institution must have an established office or local branch within or close proximity to the City of Edmonds. IV. INSTRUCTIONS TO PROPOSERS A. All proposals and/or questions should be directed to: Shawn Hunstock, Finance Director City of Edmonds Packet Page 80 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 3 of 22 121 5th Avenue N. Edmonds, WA 98020 (425) 775-7743 shawn.hunstock@ci.edmonds.wa.us B. All proposals must be in a sealed envelope and clearly marked in the lower left- hand corner: “RFP - Banking Services”. All proposals must be received by October 5th, 2012 at 4:00 p.m. Five (5) copies of the RFP must be presented. No faxed, e-mailed or telephone proposals will be accepted. Late proposals shall be returned unopened. C. Proposals should be prepared simply and economically, providing a straight forward, concise description of provider capabilities to satisfy the requirements of the request. Special bindings, colored displays, promotional materials, etc. are not required. Emphasis should be on completeness and clarity of content. Use recycled paper for responses and any printed or photocopied material created pursuant to a contract with the City whenever practicable. Use both sides of the paper for any submittal to the City whenever practical. D. All proposals must include the following: 1. Responses to Banking Services Questions/Statements in section VIII. 2. Statement of Financial Institution Qualifications found in section IX, signed and notarized. 3. Non-Collusion Affidavit Certificate found in section X, signed and notarized. 4. A detailed schedule of costs by specified task using the Bid Sheet form in Attachment A. Volumes indicated on the Bid Sheet are estimates and actual quantities may vary. Costs not included on the Bid Sheet, but which the financial institution proposes to charge, must be individually itemized and thoroughly explained. Bid Sheets must be executed by an official of the firm in a position to commit the institution to provide the services in accordance with these terms and conditions. V. SCOPE OF SERVICES General Information The City of Edmonds is soliciting proposals for a primary banking relationship with a financial institution which operates an office within the city limits. The City will be contracting for the following general services for a four year period beginning December 6th, 2012 and ending December 5th, 2016. At the City’s option, a two year extension will be permitted with the same terms and conditions of the original contract or as amended. The following is a listing of mandatory services the City requires of its financial institution: • Demand deposit checking accounts; • Nightly account balance sweep; • Banking supplies; • Interim financing or line of credit; • Payroll direct deposit; Packet Page 81 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 4 of 22 • Trust & escrow agent services; • Credit/debit card services; • Investment safekeeping services; • ACH debit services; • On-line balance reporting; • On-line Stop-pays; • ACH reporting; • On-line wire transfers; • Overdraft Line of Credit; • Positive-Pay on Checking Accounts; • Purchasing Cards; • Credit Cards; • Safe Deposit Services; • Night Depository Services. • Excellent customer service & response; Edmonds utilizes a check system, as opposed to warrants. The City anticipates that proposed banking services will be compensated either by the credit earned on average collected balances or CD, or a fee for service basis, but is also willing to consider other options. The following is a list of optional services the City may require: • Check 21 or similar expedited payment options; • Lock-box Services; • Courier Services; • Armored Car Services; • Account Reconciliation Processing (ARP). Services Required Checking Accounts: The City currently utilizes four checking accounts: 1) the primary checking account, 2) an accounts payable account, 3) a payroll check processing account, 4) and a checking account for the Court. The institution will furnish the City with additional checking accounts as needed. Currently, City of Edmonds staff delivers deposits to the institution’s branch once each workday, for processing and credit to the City’s account that day. NSF checks must be processed twice before being returned to the City. The basic checking account services should at least consist of: • Provide month-end statements by the 15th day of the following month and provide statements to various auditors upon request; • Provide electronic check image retrieval on CD monthly including necessary software; • Provide individual and consolidated monthly account analysis for all accounts by the 15th day of the following month; • Provide an on-line wire transfer system for transferring money to other institutions, along with appropriate security levels for wire transfer initiations and approvals; • Provide an on-line computer balance reporting system, with information on collected, available and closing balances, as well as a detail of total debits and credits posted to the account for the previous day, by 7:00 a.m. each business day; • Provide an on-line reporting system that shows current day ACH credits and debits, by 7:00 a.m. each business day. • Provide deposit reporting by location via an auxiliary MICR field or other means; Packet Page 82 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 5 of 22 • Provide Positive Pay feature with exception reporting/return of unknown items; • Provide for on-line stop-pay look-up and notification; • Provide support in answering questions, trouble shooting problems and resolving issues in a prompt manner; • Provide means to inquire about canceled checks and stop payment on checks upon proper authorization. Nightly Sweep/Zero Balance: To supplement the City’s daily major cash transfers to primary checking, and travel advance account, sweep account structures to bank intra-day or overnight investment options should be utilized to ensure all minimal bank-held operating funds are invested at the highest possible rate. Bank sweep alternatives shall include only SEC registered US government and agency or prime money market funds. Sweeps are designed to also minimize collateral risk for the System by eliminating overnight deposits which otherwise must be collateralized. Interim Financing and Overdraft Protection: The City may require short-term financing up to $5,000,000 for a period not to exceed one (1) year in the form of short-term notes. This short- term financing could be secured by the anticipated revenue of City funds or sale of General Obligation, Revenue, or Local Improvement District bonds. The successful bidder agrees to provide interim financing to the City on a prompt and competitive basis. Although the City will attempt to minimize daylight and overnight overdraft situations, it recognizes that there are times these situations will occur. It is anticipated these overdraft situations will not exceed $5 million, if and when they do occur. Trust and Escrow Agent Services: The City may require trust and escrow agent services to hold letters of credit and other third party commercial documents. The institution will, in most cases, be required to take physical custody of these securities, notify the Parties of their expiration thirty days prior to termination of the agreement and accept renewal or replacement of instruments. The City may also require retainage accounts be maintained for contractors choosing to place retainage funds in an interest bearing account. Safekeeping Services: The institution may occasionally require safekeeping facilities and services for the City’s investment securities. Required safekeeping services include (but are not limited to): • Receive/deliver securities on a delivery versus payment method; • Price securities to market; • Collect coupon bond interest; • Provide delivery confirmation on new security purchases; • Provide a monthly statement of holdings; • Register or transfer securities; • Verify holdings as of specific dates for audit purposes; • Credit the City’s account for interest and principal payments on the day received; • Provide maturity and interest payment notices at least 5 days prior to payment date The City currently invests in U.S. Treasury and Agency securities that require safekeeping services. The City may invest in other securities allowed by Washington State Statute in the future. The successful bidder will be required to comply with all State and Federal regulations regarding safekeeping of municipal securities. Packet Page 83 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 6 of 22 Banking Supplies: The financial institution will be required to provide a supply of coin rollers, locking bank bags, tamper proof plastic deposit bags, deposit slips, advance travel and other miscellaneous checks, and endorsement stamps for each location. The cost of such supplies shall be charged against the City’s primary checking account as supplies are furnished to the City. ACH Debit Services: As noted below, the City processes direct deposits of payroll twice a month. Other miscellaneous ACH transactions such as merchant credit card fees, excise tax payments, and federal tax payments flow through the account each month. Direct Deposit for Payroll: Edmonds offers and encourages direct payroll deposit for its employees. The City pays its employees semi-monthly on the 5th and 20th. On an average payroll, 262 employees receive direct deposit, which generates approximately 342 transactions per pay period due to many employees having multiple bank account transfers. Currently, the City transmits the payroll data to the institution via modem before 4:00 p.m. the second working day prior to payday. Deposits must be made into the employees’ account by 8:00 a.m. on payday. Any deviation from these time limits must be stated in the bid. Any bidder with less restrictive time requirements will be given favorable consideration. The City from time to time may need to transmit the payroll data one day prior to the pay date. We are therefore requesting bids on both a one-day and two-day turnaround. We are interested in what the deadlines for transmission are for both situations. Credit/Debit Card Services: The Financial institution will provide the City with the ability to accept payment through the use of credit/debit cards. The City currently accepts MasterCard and Visa credit cards in person and on-line for collection of recreation payments, utility payments, licensing payments, and online permit payments. The City currently has six locations that accept credit cards, with the possibility of more locations in the future. The City will be credited daily for the gross amount of the bank card transactions. Any sales discount fee or percentage proposed will be billed at the end of each month as part of the activity charges. Night Depository Services: The Financial institution will provide the City with the ability to make ‘night drop’ deposits after hours. City staff will prepare a deposit slip and ‘night drop’ the deposit after hours, for deposit the next day. We currently use the tamper-resistant plastic bags for this function. Corporate Credit Cards: The City also utilizes credit cards for travel, internet purchases, emergencies and other purposes and would require the financial institution to itemize the cost for issuing credit cards to the City and associated annual fees and rates. Currently the City has twenty-eight departmental/individual Visa accounts. The cards are used to make purchases in lieu of issuing purchase orders, and are used for travel needs by City staff while traveling for City business. Data Equipment Compatibility: The City is interested in equipment and data compatibility and therefore requests the specifications needed for an automated wire transfer, ACH debit & credit, credit card, balance reporting and any other automated systems be included in this proposal. Any costs associated with automated data and equipment should be identified on the Bid Sheet form in Attachment A. Miscellaneous Optional Services: In addition to the requirements listed above, the proposal Packet Page 84 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 7 of 22 shall identify proposed fees for the following services: • Rapid processing/deposit options for checks such as Check 21; • Automatic Account Reconciliation; • Armored Car Services; • Courier Services; • Lockbox Services; • Payment of Financial System Upgrades and Fees through use of analysis. In order to enhance our banking/financial processing capabilities we may wish to pay for these fees through banking analysis; • Other services provided by your institution that would be beneficial to the City of Edmonds, but have not specifically been addressed. Please itemize on the Bid Sheet form in Attachment A. Services Not Provided: In the event that the primary proposing financial institution does not provide all requested services included in this RFP, the financial institution will submit as part of its proposal additional partners/providers whom do provide these services. It is the sole responsibility of the primary financial institution to secure and maintain the relationship with any additional providers. The primary financial institution, at the time of bid submittal will identify all secondary providers. Should the financial institution be unable to secure and provide the relationship, in certain instances such as the City’s financial system software vendor or armored car services, the City may contract with independent service providers. VI. TERMS AND CONDITIONS A. The City reserves the right to reject any and all proposals, and to waive minor irregularities in any proposal. B. The City reserves the right to request clarification of information submitted, and to request additional information on any proposal. C. The City reserves the right to award any contract to the next most qualified financial institution, if the successful financial institution does not execute a contract within 30 days of being notified of selection. D. Any proposal may be withdrawn up until the date and time set above for opening of the proposals. Any proposal not so timely withdrawn shall constitute an irrevocable offer, for a period of one hundred and twenty (120) days to sell to the City the services described in the attached specifications, or until one or more of the proposals have been approved by the City administration, whichever occurs first. E. The contract resulting from acceptance of a proposal by the City shall be in a form supplied or approved by the City, and shall reflect the specifications in this RFP. A copy of the proposed contract is available for review (see attachment B). The City reserves the right to reject any proposed agreement or contract that does not conform to the specifications contained in this RFP and which is not approved by the City Attorney’s office. Packet Page 85 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 8 of 22 F. The City shall not be responsible for any costs incurred by the financial institution in preparing, submitting or presenting its response to the RFP. VII. EVALUATION PROCESSS Proposals will be evaluated by a committee of City staff. Evaluations will be based on criteria outlined herein which may be weighted by the City in a manner it deems appropriate. All proposals will be evaluated using the same criteria. The criteria used will be: A. Responsiveness to the RFP The City will consider all the material submitted to determine whether the financial institution’s offering is in compliance with the RFP documents. B. Ability to Perform Required Services The City will consider all the relevant material submitted by each financial institution, and other relevant material it may otherwise obtain, to determine whether the financial institution is capable of providing services of the type and scope specific to the RFP. The following elements may be given consideration by the City in determining whether a financial institution is capable: 1. The ability and capacity of the financial institution and the skills, experience, and availability of the specific individuals to be assigned to the City to perform the services required; 2. The quality of performance by the financial institution on previous and similar contracts and such other information as may be secured and considered relevant by the City, including information on customer service as supplied in section VIII 4 and obtained from references provided; 3. The ability of the financial institution to present professional and innovative work; the skill of the financial institution as demonstrated by samples of similar work and/or references from similar organizations; C. Fees As described in Section IV D. 4. D. References As described in Section VIII 2. E. Community Presence As described in Section VIII 3. F. Interviews and Site Visits The City may conduct interviews and site visits as part of the final selection process. VIII. BANKING SERVICES QUESTIONS/STATEMENTS Packet Page 86 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 9 of 22 Please provide your responses to the items below in the order presented. A. Provide the names of individuals, with phone numbers and e-mail addresses, who will be working on the proposed services and their areas of responsibility including their specific experience relative to the request for proposal requirements. B. Submit at least five (5) references (preferably from current local government customers) who can attest to the financial institution’s experience as it relates to providing banking services. The references must include contact name, title, address, e-mail address, telephone number and services used. C. Describe your institution’s community participation/reinvestment program including your Community Reinvestment Act (CRA) rating. D. Describe your institution’s customer service philosophy and organizational structure and provide meaningful examples to illustrate. E. Provide the following reports and information about your institution: 1. Analysis & bank statement 2. Safekeeping statement and receipts 3. Most recent financial statement 4. S&P and/or Moody’s credit rating or comparable rating F. Provide a funds availability schedule. Describe one day, two day availability and wire requirements. G. Describe your Balance Reporting systems and availability. 1. What hardware/software does the bank use to deliver balance and transaction detail information? 2. What time is previous day information available for access by the customer? 3. What are the hours of access of the balance reporting system? 4. Does the bank provide current day information? a. How frequently is this information updated throughout the day? b. What transaction types are available on current day reports? 5. Describe the level of detail provided in previous and current day reports? 6. How many days of history can be accessed through the system? 7. In what format is information available? 8. Provide a sample printout of the daily on-line balance information. H. ACH Services: 1. What is the recommended service delivery method (i.e. direct transmission, on-line, or other)? a. What are the hardware/software requirements? b. What training does the bank provide? c. Does the software offer the ability to manage security and access levels by user? d. What report options are available? e. What controls are in place to protect against lost files and duplications of transmissions? Packet Page 87 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 10 of 22 f. Does the bank provide automatic file receipt acknowledgements? If so, how? g. Describe the role of any third-party processor used by the bank to provide this service? 2. What are the hours of operation of the ACH unit? 3. What are the bank’s cut-off times for customer initiation of ACH transactions? 4. Describe the procedures used to verify accurate and secure receipt of transmissions. 5. Can the bank automatically redeposit items returned for insufficient or uncollected funds? 6. How does the bank handle file, batch, and item reversals and deletions? I. Positive Pay 1. What is the recommended service delivery method (i.e. direct transmission, on-line, or other)? a. What are the hardware/software requirements? 2. What controls are in place to protect against lost files and duplications of transmissions? 3. Does the bank provide automatic file receipt acknowledgements? If so, how? 4. Describe the role of any third-party processor used by the bank to provide this service? 5. What is the bank’s deadline for transmitting files/data? 6. What is the process for notifying the bank of a single check or small check run outside of the regular batch file? 7. How does the City notify the bank of voided and stop payment checks? 8. Does your bank have payee verification? 9. Is the positive pay service fully implemented at all bank branches? 10. How does the bank handle exception (“paid not issued”) items? a. Does the bank offer a daily listing of exception items? b. Are there defaults available for each account to either automatically return or pay on exception items? c. What is the timeline for reporting exceptions to the city? d. How are exceptions reported to the city? Will an image be available? e. What is the timeline for the city to act on any exceptions? f. What are the hours of operation of this service unit? J. Merchant Card Services: 1. Provide a funds availability schedule by card type. Is it negotiable? 2. What is the settlement deadline? 3. What daily and/or monthly reconciliation reports are available? 4. Do you offer recurring billing processing? K. Payment of Fees. Respondents will need to provide information on the following: 1. The proposed method for setting rates on a compensating certificate of deposit; 2. Whether a service charge credit/debit can be carried forward to the next period; 3. The formula for any fees in the event of an overdraft; 4. Describe what constitutes a daylight and overnight overdraft situation. L. Errors and Adjustments Packet Page 88 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 11 of 22 1. Describe your adjustment process for resolving deposit discrepancies. 2. At what dollar amount do you write off discrepancies? 3. Do you adjust the deposit amount or process an adjusting debit or credit? M. Describe how inquires requiring research and adjustments are handled by the institution. Are there established turn-around times for research and adjustment items? If yes, specify. N. Describe NSF or Returned Items processing procedures, fees or other related services available. The City will require re-depositing ‘NSF’ or ‘uncollected funds’ returned items so that they may be presented a second time prior to being charged back. O. Security/Protection Measures: What security features are in place to minimize the risk of unauthorized transactions? P. Service Enhancements: Describe any enhancements, technological or otherwise, that we should consider to improve operational or cash management efficiencies. Q. Discuss your use of the internet in providing services to your municipal/business customers. R. Provide information on how your institution plans to keep your product line competitive. Describe what approach the bank is taking in the development of new services and what new services and/or features the bank plans to offer and within what time frame. S. Disaster Recovery: 1. Describe your institution’s formal disaster recovery plan. 2. How quickly will back-up facilities be activated? 3. Describe your institution’s operating capabilities to assist the City in the event of a disaster or declared emergency. T. Conversion Plan: Describe the conversion plan you would coordinate to ensure a smooth transition from the current provider. U. List the address and hours of operation at your nearest branch office and also the hours of operation for non-branch services. V. Discuss any special conditions, other fees, other services, or deviations from the requested scope. Packet Page 89 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 12 of 22 IX. STATEMENT OF FINANCIAL INSTITUTION QUALIFICATIONS Each financial institution submitting a proposal for items included in this document shall prepare and submit the following data along with their proposal: 1. Name of Financial Institution 2. Business Address 3. Business Phone Fax No. 4. E-mail address 5. How many years have you been in business under the present name? 6. General character of services provided by your institution: 7. City of Edmonds Business License Number: 8. State of Washington Sales Tax Registration Number: 9. Federal I.R.S. Identification Number: 10. I certify that the institution:  is capable of providing the services as outlined in this proposal,  will comply with the rules and regulations outlined by the Revised Code of Washington, Edmonds Municipal Code, and the Washington Public Deposit Protection Commission, and other applicable laws and regulations. City of Edmonds Banking Services Institution Name Authorized Signature Sworn before me, this day of, 2012. Notary Public in and for the State of Washington Packet Page 90 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 13 of 22 X. NON-COLLUSION AFFIDAVIT CERTIFICATE State of Washington ) )ss County of ) The undersigned, being duly sworn, deposes and say that the person, firm, association, co- partnership, or corporation herein named has not either directly or indirectly entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive bidding in the preparation and submission of a proposal to the Owner for consideration in the award of a contract on the improvement described as follows: City of Edmonds Banking Services Institution Name Authorized Signature Sworn before me, this day of, 2012. Notary Public in and for the State of Washington Packet Page 91 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 14 of 22 XI. OTHER INFORMATION For additional information or explanation of the contents or intent of these specifications, please e-mail your questions to Shawn Hunstock, Finance Director, at shawn.hunstock@ci.edmonds.wa.us. An optional bidder’s conference will be held ___________ at 9:00 a.m. in the Council Chambers of the Edmonds City Hall, 121 5th Ave N, Edmonds, Washington. The City will provide copies of this document for your modification in MS Word format (.doc) to assist with your responses. Packet Page 92 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 15 of 22 Attachment A Bid Sheet Item Unit Price Estimated Monthly Volume Avg. Monthly Cost Explanation Account Analysis: ACCOUNT MAINTENANCE – MAIL 4.00 Account Reconciliation: BASIC POS PAY- ACCOUNT BASE 2.00 BASIC POS PAY – PER ITEM 250.00 BASIC POS PAY – PER ITEM 250.00 BASIC POS PAY - PER ITEM 116.33 BPP – PPW EXCEPTION REPORTED 3.00 BPP – PPW EXCEPTION IMAGE VIEW ED 3.25 BPP – PPW UPLOAD ISSUE FILE 250.00 BPP –PPW UPLOAD ISSUE FILE 250.00 BPP – PPW UPLOAD ISSUE FILE 133.42 BPP –PPW MANUAL ISSUE ENTRY 2.17 Business Checking: BRANCH DEPOSIT 32.92 ELECTRONIC CREDIT 149.50 NIGHT DROP DEPOSIT 155.42 PAID CHECK CHARGE 500.00 PAID CHECK CHARGE 133.42 ELECTRONIC DEBIT 31.75 BANK STATEMENT WEB 4.00 Check Processing: UB CHECKS – BRANCH DEPOSIT 136.00 LOCAL CLR.HSE./BRANCH DEP. 28.00 LOCAL FED DIST 12 – BRANCH DEP 4,065.67 OTHER FED – BRANCH DEPOSIT 810.42 DEBIT ERROR NOTICE 3.30 CREDIT ERROR NOTICE 1.86 Clear Pay: ACH WEB MONTHLY BASE FEE 1.00 ACH WEB CREDIT TRANSACTION 100.00 ACH WEB CREDIT TRANSACTION 488.42 ACH WEB NOC TRANSMISSION 3.29 ACH WEB BATCH RELEASE 2.00 Packet Page 93 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 16 of 22 Commercial Customer Service: IMAGE OF DEP ITEM <30 DAYS 176.75 IMAGE OF DEP ITEM 31-60 DAYS 2.00 Information Reporting: SIMPLIFIED PD REPORT ACCT – CLVL 5.00 SIMPLIFIED PD BAL/SUM UPDATED 1,088.75 SIMPLIFIED PD TRANSACTION UPDT 1,088.42 SIMPLIFIED CD REPORT ACCT – CLVL 5.00 SIMPLIFIED CD BAL/SUM UPDATED 234.42 SIMPLIFIED CD TRANSACTION UPDT 256.17 Deposited Items Returned: DEPOSITED ITEMS RETURND-CHRGBK 11.83 Office Cash Services: DEPOSITED CURRENCY 42,331.64 CURRENCY FURNISHED 647.45 Savings Account: BANK STATEMENT WEB 1.00 FDIC INSURANCE 1.59 Statements: IOD-SINGLE IMAGE (<120 DAYS) 8.40 STATEMENT-IMAGE VIEW 2.00 Teleservices: INQUIRY & TRANSFER SERVICE 1.00 Team Stop Payments: WEB STOP SINGLE INQUIRY 1.50 WEB DDA STOP PAYMENT 2.50 Electronic Wire Transfer: ACCT TRANSFER END-OF-DAY/WEB 1.25 WIRE TRANSFER MONTHLY FEE/WEB 1.00 Zero Balance Accounts: SUB LEVEL 1 1.00 SUB LEVEL 1 1.00 Packet Page 94 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 17 of 22 Notes or Item Description: Formulas: Daylight Overdraft Formula Overnight Overdraft Formula Short-Term Financing Formula FDIC Insurance Formula Service Charge Credit Formula Packet Page 95 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 18 of 22 The undersigned, an institution or firm maintaining operations within the city limits of Edmonds, Washington, submits the following proposal for the City’s banking services for the period beginning December 6th, 2012 and ending December 5th, 2012. Authorization: Institution Name Date Mailing Address Phone Number City, State, Zip Fax Number By Title Contact Name (if different from above) Contact Phone Number Packet Page 96 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 19 of 22 Attachment B Banking Services Agreement BANKING SERVICES AGREEMENT PROVISIONS FOR THE CITY OF EDMONDS The City of Edmonds, Washington, a municipal corporation (hereinafter the "City") and ______________________, whose address is ______________________________________, (hereinafter the "Financial Institution", agree and contract as follows: A. SERVICES BY FINANCIAL INSTITUTION 1. The Financial Institution agrees to perform the services described in this proposal, which attachment is incorporated herein by reference. 2. All services, and all duties incidental or necessary thereto, shall be conducted and performed diligently and completely and in accordance with professional standards of conduct and performance. B. COMPENSATION 1. The total compensation to be paid to the Financial Institution shall be detailed in Attachment A. The above fees include all labor, materials and expenses required for the completion of these services. 2. Payment to Financial Institution by the City in accordance with the above shall be the total compensation for all work performed under this agreement and supporting documents hereto as well as all subcontractor's fees and expenses, supervision, labor supplies, materials, equipment or the use thereof, reimbursable expenses, and other necessary incidentals. 3. The Financial Institution shall be paid based on the acceptance of the proposed compensation. 4. The City shall have the right to withhold payment to the Financial Institution for any service not completed in a satisfactory manner until such time as the Financial Institution modifies such service to the satisfaction of the City. 5. Unless otherwise specified in this Agreement, any payment shall be considered timely if a check is mailed or is available within 45 days of the date of actual receipt by the City of an invoice conforming in all respects to the terms of this Agreement. C. TERMINATION OF AGREEMENT The City reserves the right to terminate or suspend this Agreement at any time, with or without cause, by giving forty-five (45) days’ notice to the financial Packet Page 97 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 20 of 22 institution in writing. In the event of termination, all finished or unfinished reports, or other material prepared by the Financial Institution pursuant to the Agreement shall be provided to the City. In the event the City terminates this agreement prior to completion without cause, the Financial Institution may complete such analyses and records as may be necessary to place its records in order. The Financial Institution shall be entitled to receive just and equitable compensation of any satisfactory services completed prior to the date of suspension or termination, not to exceed the compensation set forth above. Should the Financial Institution desire to terminate this agreement, written notice of 180 days is required. D. OWNERSHIP OF WORK PRODUCT Ownership of the originals of any reports, data, studies, surveys, charts, maps, drawings, specifications, figures, photographs, memoranda, and any other documents which are developed, compiled or produced as a result of this agreement, whether or not completed, shall be vested in the City. Any reuse of these materials by the City for projects or purposes other than those which fall within the scope of this agreement or the project to which it relates, without written concurrence by the Financial Institution will be at the sole risk of the City. E. GENERAL ADMINISTRATION AND MANAGEMENT The Finance Director for the City of Edmonds shall review and approve the Financial Institutions charges to the City under this Agreement, shall have the primary responsibility for overseeing and approving services to be performed by the Financial Institution, and shall coordinate all communications with the Financial Institution from the City. F. CONTRACT PERIOD The Banking Services Agreement is to extend for a period of four years, beginning on December 6th, 2012 with a two year option to renew the Agreement. The City in order to exercise its renewal option will need to do nothing. At the end of this period, the City may choose to negotiate a renewal option or to request additional proposals. G. SUCCESSORS AND ASSIGNS The Financial Institution shall not assign, transfer, convey, pledge, or otherwise dispose of this agreement or any part of this agreement without prior written consent of the City. H. NONDISCRIMINATION The Financial Institution shall, in all hiring or employment made possible or resulting from this agreement, take affirmative action to ensure that there shall be no unlawful discrimination against any employee or applicant for employment because of sex, race, age, color, creed, national origin, marital status or the presence of any sensory, mental or physical handicap, unless based upon a bonafide occupational qualification, and this requirement shall apply to but not be Packet Page 98 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 21 of 22 limited to the following: employment, advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex, race, color, creed, national origin, age except minimum age and retirement provisions, marital status, or the presence of any sensory, mental or physical handicap. I. HOLD HARMLESS/INDEMNIFICATION The Financial Institution agrees to indemnify, defend, and save harmless the City and its officers, agents, and employees, from any claim, real or imaginary, filed against the City or its officers, agents, or employees, alleging damage or injury arising out of the subject matter of this Agreement; provided, however, that such provision shall not apply to the extent that the damage or injury results from the fault of the City or its officers, agents, or employees. "Fault" as herein used shall have the same meaning as set forth in RCW 4.22.015. J. LIABILITY INSURANCE COVERAGE The Financial Institution will, at the Financial Institution's sole expense, obtain and maintain during the life of this Agreement, policies of comprehensive general liability insurance, each with combined single limits of not less than $1,000,000 per occurrence. Any policy of required insurance on a claims-made basis shall provide coverage as to all claims arising out of the services performed under the contract and filed within three (3) years following completion of the services so to be performed. A failure to obtain and maintain such insurance or to file said certificates shall be a material breach of this Agreement. K. COMPLIANCE WITH LAWS The Financial Institution shall comply with all applicable State, Federal and City laws, ordinances, regulations, and codes. L. FUTURE SUPPORT The City makes no commitment and assumes no obligations for the support of Financial Institution activities except as set forth in this Agreement. M. INDEPENDENT CONTRACTOR The Financial Institution is and shall be at all times during the term of this agreement an independent contractor. N. EXTENT OF AGREEMENT/MODIFICATION This Agreement, together with all attachments and addenda, represents the entire and integrated Agreement between the parties hereto and supersedes all prior negotiations, representations or agreements, either written or oral. This Packet Page 99 of 393 City of Edmonds Banking Services RFP August 15, 2012 Page 22 of 22 Agreement may be amended, modified or added to only by written instrument properly signed by both parties hereto. O. ADDITIONAL WORK The City may desire to have the Financial Institution perform other services in connection with the banking relationship other than provided for by the express intent of this contract. Any such services shall be considered as additional work, supplemental to this Agreement. Additional work shall not proceed unless so authorized in writing by the City. Authorized additional work will be compensated for in accordance with a written supplemental Agreement between the City and the Financial Institution. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates written below: FINANCIAL INSTITUTION: CITY OF EDMONDS: By: By: Title: Title: Date: Date: APPROVED AS TO FORM: Edmonds City Attorney Date: Packet Page 100 of 393    AM-5045     4. J.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Shawn Hunstock Submitted By:Shawn Hunstock Department:Finance Review Committee: Finance Committee Action: Approve for Consent Agenda Type: Information  Information Subject Title 2011 Financial Statement Audit Report - State Auditor's Office Recommendation N.A. for information only Previous Council Action N.A. Narrative This item is for information only. The attached financial statement audit report for 2011 indicates that audit issues from 2010 were considered to be resolved, and there were no new findings for the 2011 financial statements. This agenda memo also includes a copy of an email from the State Auditors Office to the City Council. The first three items mentioned in this communication were description changes the auditors wanted on the financial statements, and those changes were made. The other two items related to immaterial dollar amounts for invoices that were paid and could have been accrued back to 2011 but were not because the Finance Department had already started preparing financial statements in order for the statements to be ready when the auditors arrived to begin their audit fieldwork. The timing on these invoices, being included in 2012 rather than accrued back to 2011, was considered to be immaterial by the auditors and as such did not result in a finding. Attachments 2011 SAO Audit Report Auditor Communication with Council Form Review Inbox Reviewed By Date City Clerk Sandy Chase 08/15/2012 11:33 AM Mayor Dave Earling 08/15/2012 11:50 AM Finalize for Agenda Sandy Chase 08/15/2012 12:11 PM Form Started By: Shawn Hunstock Started On: 08/15/2012 11:13 AM Final Approval Date: 08/15/2012  Packet Page 101 of 393 Packet Page 102 of 393 Washington State Auditor’s Office Financial Statements and Federal Single Audit Report City of Edmonds Snohomish County Audit Period January 1, 2011 through December 31, 2011 Report No. 1008064 Issue Date July 30, 2012 Packet Page 103 of 393 July 30, 2012 Mayor and City Council City of Edmonds Edmonds, Washington Report on Financial Statements and Federal Single Audit Please find attached our report on the City of Edmonds’ financial statements and compliance with federal laws and regulations. We are issuing this report in order to provide information on the City’s financial condition. Sincerely, BRIAN SONNTAG, CGFM STATE AUDITOR Washington State Auditor Brian Sonntag Insurance Building, P.O. Box 40021  Olympia, Washington 98504-0021  (360) 902-0370  TDD Relay (800) 833-6388 FAX (360) 753-0646  http://www.sao.wa.gov Packet Page 104 of 393 Table of Contents City of Edmonds Snohomish County January 1, 2011 through December 31, 2011 Federal Summary ...................................................................................................................... 1 Status of Prior Audit Findings ..................................................................................................... 3 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters in Accordance with Government Auditing Standards ................. 4 Independent Auditor’s Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 ........................................................................................ 6 Independent Auditor’s Report on Financial Statements .............................................................. 8 Financial Section .......................................................................................................................10 Packet Page 105 of 393 Federal Summary City of Edmonds Snohomish County January 1, 2011 through December 31, 2011 The results of our audit of the City of Edmonds are summarized below in accordance with U.S. Office of Management and Budget Circular A-133. FINANCIAL STATEMENTS An unqualified opinion was issued on the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information. Internal Control Over Financial Reporting: • Significant Deficiencies: We reported no deficiencies in the design or operation of internal control over financial reporting that we consider to be significant deficiencies. • Material Weaknesses: We identified no deficiencies that we consider to be material weaknesses. We noted no instances of noncompliance that were material to the financial statements of the City. FEDERAL AWARDS Internal Control Over Major Programs: • Significant Deficiencies: We reported no deficiencies in the design or operation of internal control over major federal programs that we consider to be significant deficiencies. • Material Weaknesses: We identified no deficiencies that we consider to be material weaknesses. We issued an unqualified opinion on the City’s compliance with requirements applicable to . We reported no findings that are required to be disclosed under section 510(a) of OMB Circular A-133. Packet Page 106 of 393 Identification of Major Programs: The following during the period under audit: CFDA No. Program Title 20.205 ARRA - Highway Planning and Construction Cluster (Recovery Act) 20.205 Highway Planning and Construction Cluster The dollar threshold used to distinguish between Type A and Type B programs, as prescribed by OMB Circular A-133, was $300,000. The City qualified as a low-risk auditee under OMB Circular A-133. Packet Page 107 of 393 Status of Prior Audit Findings City of Edmonds Snohomish County January 1, 2010 through December 31, 2010 The status of findings contained in the prior years’ audit reports of the City of Edmonds is provided below: 1. The City’s controls over financial statement preparation are inadequate to ensure accurate accounting and financial reporting. Report No. 1007507, dated April 16, 2012 Background Our audit identified deficiencies in internal controls over financial reporting that could affect the City’s ability to produce reliable financial statements. We identified the following deficiencies in internal controls over accounting and financial reporting that, when taken together, represent a material weakness: • Staff did not use current resources such as the Budgeting, Accounting and Reporting Standards (BARS) Manual and Governmental Accounting Standards Board (GASB) pronouncements to prepare the financial statements, notes and required schedules. • City management chose not to consider the accounting and financial reporting of applicable accounting standards, such as Government Accounting Standards Board Statement No. 51, relating to intangible assets due to its complexity and limited staff resources. • Staff lacked adequate knowledge of the accounting requirements, resulting in a misinterpretation of the instructions for updating the Other Post Employment Benefit (OPEB) liability and related note disclosures. Status Based on our audit of the 2011 financial sections, we determined that City management addressed the deficiencies in internal controls over financial reporting to ensure the City has produced reliable financial statements. Packet Page 108 of 393 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters in Accordance with Government Auditing Standards City of Edmonds Snohomish County January 1, 2011 through December 31, 2011 Mayor and City Council City of Edmonds Edmonds, Washington We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of the City of Edmonds, Snohomish County, Washington, as of and for the year ended December 31, 2011, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 27, 2012. During the year ended December 31, 2011, the City implemented Governmental Accounting Standards Board Statement No. 51, Accounting and Financial Reporting for Intangible Assets and Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit, we considered the City’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be deficiencies, significant deficiencies or material weaknesses. Packet Page 109 of 393 We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of the City’s compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended for the information and use of management, the Mayor and City Council, federal awarding agencies and pass-through entities. However, this report is a matter of public record and its distribution is not limited. It also serves to disseminate information to the public as a reporting tool to help citizens assess government operations. BRIAN SONNTAG, CGFM STATE AUDITOR June 27, 2012 Packet Page 110 of 393 Independent Auditor’s Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 City of Edmonds Snohomish County January 1, 2011 through December 31, 2011 Mayor and City Council City of Edmonds Edmonds, Washington COMPLIANCE We have audited the compliance of the City of Edmonds, Snohomish County, Washington, with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on its major federal program for the year ended December 31, 2011. The City’s major federal program is identified in the Federal Summary. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal program is the responsibility of the City’s management. Our responsibility is to express an opinion on the City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City’s compliance with those requirements. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended December 31, 2011. Packet Page 111 of 393 INTERNAL CONTROL OVER COMPLIANCE The management of the City is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended for the information of management, the Mayor and City Council, federal awarding agencies and pass-through entities. However, this report is a matter of public record and its distribution is not limited. It also serves to disseminate information to the public as a reporting tool to help citizens assess government operations. BRIAN SONNTAG, CGFM STATE AUDITOR July 11, 2012 Packet Page 112 of 393 Independent Auditor’s Report on Financial Statements City of Edmonds Snohomish County January 1, 2011 through December 31, 2011 Mayor and City Council City of Edmonds Edmonds, Washington We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of the City of Edmonds, Snohomish County, Washington, as of and for the year ended December 31, 2011, which collectively comprise the City’s basic financial statements as listed on page 10. These financial statements are the responsibility of the City’s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of the City of Edmonds, as of December 31, 2011, and the respective changes in financial position, and the budgetary comparison for the General Fund fund, for the year then ended in conformity with accounting principles generally accepted in the United States of America. As described in Note 1, during the year ended December 31, 2011, the City implemented Governmental Accounting Standards Board Statement No. 51, Accounting and Financial Reporting for Intangible Assets and Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. In accordance with Government Auditing Standards, we have also issued our report on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide Packet Page 113 of 393 an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 11 through 23, pension trust fund and information on postemployment benefits other than pensions on pages 75 through 76 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during the audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. This schedule is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. BRIAN SONNTAG, CGFM STATE AUDITOR June 27, 2012 Packet Page 114 of 393 Financial Section City of Edmonds Snohomish County January 1, 2011 through December 31, 2011 REQUIRED SUPPLEMENTARY INFORMATION Management’s Discussion and Analysis – 2011 BASIC FINANCIAL STATEMENTS Statement of Net Assets – 2011 Statement of Activities – 2011 Balance Sheet – Governmental Funds – 2011 Reconciliation of the Balance Sheet to the Statement of Net Assets – Governmental Funds – 2011 Statement of Revenues, Expenditures and Changes in Fund Balance – Governmental Funds – 2011 Reconciliation of the Statement Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities – 2011 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund – 2011 Statement of Net Assets – Proprietary Funds – 2011 Statement of Revenues, Expenses and Changes in Fund Net Assets – Proprietary Funds – 2011 Statement of Cash Flows – Proprietary Funds – 2011 Statement of Fiduciary Net Assets – Fiduciary Funds – 2011 Statement of Changes in Fiduciary Net Assets – Fiduciary Fund – 2011 Notes to Financial Statements – 2011 REQUIRED SUPPLEMENTARY INFORMATION Firemen’s Pension Trust Fund – 2011 Retiree Medical and Long-Term Care Benefits for LEOFF I Employees – 2011 Notes to the Required Supplemental Information – 2011 SUPPLEMENTARY INFORMATION Schedule of Expenditures of Federal Awards – 2011 Notes to the Schedule of Expenditures of Financial Assistance – 2011 Packet Page 115 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS MANAGEMENT’S DISCUSSION AND ANALYSIS The City of Edmonds (City) presents this Management’s Discussion and Analysis of its financial activities for the fiscal year ended December 31, 2011. The City’s discussion and analysis is designed to: • Assist the reader in focusing on significant financial issues • Provide an overview of the City’s financial activity • Identify changes in the City’s financial position (its ability to meet future years’ challenges) • Identify any material deviations from the approved budget • Identify individual fund issues or concerns Management’s Discussion and Analysis is designed to focus on the current year’s activities, resulting changes and currently known facts. Therefore, it should be read in conjunction with the Transmittal Letter and the City’s financial statements. Financial Highlights • At December 31, 2011 the City's net assets, the amount by which total assets exceeded total liabilities, totaled $142 million. Of this amount, $107 million is invested in capital assets, such as land, buildings, and infrastructure net of related debt. The remaining net assets of $35 million is restricted for debt service, construction, and various other purposes. • The City's total net assets increased by $3.3 million or 2.4% in 2011. Governmental activities increased by $1.7 million and business-type activities increased by $1.7 million. • Governmental funds reported a combined ending fund balance of $13.4 million; a $0.7 million increase over the prior year. Of this amount, $9.6 million is unassigned and available to fund ongoing activities. Governmental fund balances also include $1.9 million in the emergency reserve finance fund, which the City Council has stated will only be used in cases of catastrophic emergencies such as an earthquake or other natural or manmade disaster. The unassigned fund balance of $9.6 million represents 29% of total 2011 general fund expenditures. • Total capital assets increased by $2.7 million or 2.0% in 2011. • Total debt increased by a net of $8.6 million during the current fiscal year. Outstanding bonded debt, loans, and long term contracts at year-end totaled $37.6 million. Using this Annual Financial Report This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand the City of Edmonds as a financial whole or as an entire operating entity. The statements then proceed to provide an increasingly detailed look at specific financial conditions. The Statement of Net Assets and Statement of Activities provide information about the activities of the whole City presenting both an aggregate view of the City’s finances and a longer-term view of those assets. Major fund financial statements provide the next level of detail. For governmental funds, these statements tell how services were financed in the short-term as well as what dollars remain for future spending. The fund financial statements also look at the City’s most significant funds with all other non- major funds presented in total in one column. Overview of the Financial Statements Packet Page 116 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS The City’s basic financial statements are presented in three parts: 1) Government-wide financial statements 2) Fund financial statements 3) Notes to the financial statements Other supplementary information, in addition to the basic financial statements, is also contained in this report. This section of the management’s discussion and analysis is intended to introduce and explain the basic financial statements. Government-wide Financial Statements The government-wide financial statements are designed to be corporate-like in that all governmental and business-type activities are consolidated into columns which add to a total for the City. The focus of the Statement of Net Assets is designed to be similar to bottom-line results for the City and its governmental and business-type activities. This statement combines and consolidates governmental funds’ current financial resources (short-term spendable resources) with capital assets and long-term obligations. Over time, increases or decreases in net assets may be one indicator of improvement or deterioration in the City’s overall financial health. The Statement of Activities is focused on both the gross and net cost of various functions, including both governmental and business-type activities, which are supported by the City’s general tax and other revenues. This is intended to summarize and simplify the user’s analysis of cost of various governmental services and/or subsidy to various business-type activities. The revenue generated by the specific functions (charges for services, grants, and contributions) is compared to the expenses for those functions to show how much each function either supports itself or relies on taxes and other general funding sources for support. All activity on this statement is reported on the accrual basis of accounting, requiring that revenues are reported when they are earned and expenses are reported when they are incurred, regardless of when cash is received or disbursed. Governmental activities of the City include general government (executive, finance, legal, human resources, court), security (police), physical environment, economic environment, transportation, health and human services, and culture and recreation. The City’s business-type activities include water, sewer, storm water and wastewater treatment utilities. Governmental activities are primarily supported by taxes, charges for services, and grants while business-type activities are self-supporting through user fees and charges. The City also includes as a discretely presented component unit the Edmonds Public Facilities District (EPFD), a performing arts center in Edmonds, and the EPFD’s blended component unit, the Edmonds Center for the Arts (ECA), a non-profit established to collect donations and manage the operations for the EPFD. Although legally separate, the EPFD is important because the City provides financial support and oversight responsibilities connected to the activities of the board. Fund Financial Statements The fund financial statements will look familiar to the traditional users of governmental financial statements. However, the focus now is on major funds rather than fund types. Individual funds are used to maintain control over resources that are segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. There are three categories of City funds: governmental funds, proprietary funds, and fiduciary funds. Governmental funds account for essentially the same functions reported as governmental activities in the government-wide financial statements. Most of the City’s basic services are reported in the governmental funds. These statements, however, focus on cash and other assets that can readily be converted to Packet Page 117 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS available resources, as well as any balances remaining at year-end. Such information is useful in determining what financial resources are available in the near future to finance the City’s programs. Readers may better understand the long-term impact of the government’s near-term financing decisions by comparing the information presented for the governmental funds with similar information presented for governmental activities in the government-wide financial statements. The Governmental Funds’ Balance Sheet and the Governmental Funds’ Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate the comparison. Information for the major governmental funds is presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund’s Statement of Revenues, Expenditures, and Changes in Fund Balances; information for the non-major funds is presented in the aggregate. The City’s main operating fund is the general fund. However, the City maintains many accounts and subfunds within the general fund, including the emergency financial reserve subfund, the public safety emergency reserve subfund, the building maintenance subfund among others. Because of materiality and public interest in these funds, individual fund data for each of these subfunds is provided in the combining statement for the general fund elsewhere in this report. Proprietary funds account for services for which the City charges outside customers and internal City departments. Proprietary funds provide the same information as shown in the government-wide financial statements, only in more detail, since both use the accrual basis of accounting. Proprietary funds report the same functions presented as business-type activities in the government-wide financial statements. The City has two types of proprietary funds, enterprise funds and internal service funds. Enterprise funds are used to account for goods and services provided to citizens. Internal service funds are used to account for goods and services provided internally to various City departments. The enterprise fund statements provide information for the City’s water, sewer, storm water and wastewater treatment utilities. Enterprise funds of the City are consolidated into one fund for financial statement reporting purposes. The City uses an internal service fund to account for its fleet of vehicles. Because these services largely benefit governmental rather than business-type functions, they have been included within the governmental activities in the government-wide financial statements. Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, or other funds. Fiduciary funds are not included in the government-wide financial statements because their assets are not available to support City programs. The City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Assets and a Statement of Changes in Fiduciary Net Assets as part of the basic financial statements. Notes to the Financial Statements The notes to the financial statements are an integral part of the financial statements. They provide additional disclosures essential to a full understanding of the information provided in the government-wide and fund financial statements. The notes to the financial statements immediately follow the basic financial statements in this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning a schedule of funding progress for the Firemen’s Pension Trust Fund and other post-employment benefits. Additional pension benefit information is found in note 10. Packet Page 118 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS The combining statements referred to earlier in connection with non-major governmental funds, non- major enterprise funds, and internal service funds are presented in the section titled “Combining and Individual Fund Financial Statements and Schedules”. Government-wide Financial Analysis The Statement of Net Assets can serve as a useful indicator of the City’s financial position. The City of Edmonds’ net assets (assets in excess of liabilities) at December 31, 2011 totaled $142.2 million. Following is a condensed version of the government-wide statement of net assets with a comparison to 2010: As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10 Current and other assets 26,846,674$ 25,773,347$ 22,506,614$ 12,439,784$ 49,353,288$ 38,213,131$ Capital assets, net of accumulated depreciation 72,715,560 73,357,118 65,774,450 62,464,194 138,490,010 135,821,312 Total assets 99,562,234 99,130,465 88,281,064 74,903,978 187,843,298 174,034,443 Long-term liabilities 21,170,376 6,333,580 20,410,294 2,588,498 41,580,670 8,922,078 Other liabilities 1,701,116 17,763,756 2,311,943 8,448,647 4,013,059 26,212,403 Total liabilities 22,871,492 24,097,336 22,722,237 11,037,145 45,593,729 35,134,481 Net assets Invested in capital assets, net of related debt 61,004,928 59,961,071 45,783,325 53,273,296 106,788,253 113,234,367 Restricted 3,288,857 1,368,707 9,096,615 687,447 12,385,472 2,056,154 Unrestricted 12,396,957 13,703,352 10,678,887 9,906,089 23,075,844 23,609,441 Total net assets 76,690,742$ 75,033,130$ 65,558,827$ 63,866,832$ 142,249,569$ 138,899,962$ Governmental Activities Business-type Activities Total City of Edmonds Net Assets Approximately $8.1 million of the primary government’s total net assets are restricted for construction projects to renovate or improve the City’s buildings, parks, street and utilities infrastructure. The remaining balance of net assets is primarily allocated to restrictions for debt service payments, transportation improvements, and other purposes in the amount of $4.2 million and unrestricted net assets of $23.1 million. The business-type unrestricted assets of $10.7 million may only be spent on utility activities. Other functions of the City may access the governmental unrestricted assets of $12.4 million to meet ongoing obligations to citizens and creditors. There are no restrictions, commitments, or other limitations that significantly affect the availability of resources for future use. The largest component of the City’s net assets, $106.8 million, or 75.1%, is its investment in capital assets, less debt related to the acquisition or construction of those assets. These capital assets, such as streets, parks, trails, and vehicles and equipment related to police and public works, are used to provide services to the citizens. As a result, these assets are not for sale, and are therefore not available to fund current and future City obligations. The City elected the GASB 34 reporting option to include all general infrastructure of the City acquired or substantially renovated since 1980. Unrestricted net assets of the City’s business-type activities, totaling $10.7 million, represent the portion of unrestricted net assets that may only be spent on activities related to one of the City’s utilities (water, sewer, storm water and wastewater treatment). Examples of utility activities include maintenance of water/sewer mains, pump and lift stations, storm drain flushing, water meter reading, and the wastewater treatment plant. Restricted governmental fund net assets are $3.3 million and are restricted for purposes such as debt service, public safety and other purposes. Packet Page 119 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS The remaining net assets of the City may be used for functions such as general government employee salaries and supplies, park and road maintenance, and police services. Changes in Net Assets The change in net assets represents the increase or decrease in City net assets resulting from its various activities. Following is a condensed version of the City’s changes in net assets. The table shows the revenues, expenses and related changes in net assets for both governmental-type and business-type activities: 2011 2010 2011 2010 2011 2010 Revenues: Program revenues: Charges for services 8,378,697$ 8,138,658$ 15,620,997$ 14,347,539$ 23,999,694$ 22,486,197$ Operating grants and contributions 145,406 272,554 179,479 47,249 324,885 319,803 Capital grants and contributions 1,771,199 534,066 498,486 1,246,156 2,269,685 1,780,222 General revenues: Property tax 13,539,536 13,683,426 - - 13,539,536 13,683,426 Retail sales and use tax 5,286,262 5,002,282 - - 5,286,262 5,002,282 Interfund utility tax 1,517,150 1,390,713 - - 1,517,150 1,390,713 Utility tax 4,715,339 4,606,438 - - 4,715,339 4,606,438 Excise tax 1,368,160 - - - 1,368,160 - Other taxes 1,020,419 380,892 - - 1,020,419 380,892 Real estate excise taxes - 1,709,951 - - - 1,709,951 Hotel/motel taxes - 68,186 - - - 68,186 Fuel taxes - 884,784 - - - 884,784 Payments from component unit 396,493 381,368 - - 396,493 381,368 Investment earnings 16,070 32,845 15,287 - 31,357 32,845 Miscellaneous revenue 84,770 (37,065) 311 33,154 85,081 (3,911) Gain on sale of capital assets 36,762 983,191 - - 36,762 983,191 Total revenues 38,276,263 38,032,289 16,314,560 15,674,098 54,590,823 53,706,387 Expenses: General government 8,092,028 8,210,126 - - 8,092,028 8,210,126 Public safety 18,037,057 17,630,352 - - 18,037,057 17,630,352 Transportation 3,412,126 4,325,832 - - 3,412,126 4,325,832 Physical environment 1,405,398 1,266,933 - - 1,405,398 1,266,933 Culture and recreation 4,298,852 3,984,078 - - 4,298,852 3,984,078 Economic environment 1,063,894 1,643,520 - - 1,063,894 1,643,520 Health and human services 9,731 10,217 - - 9,731 10,217 Interest on long-term debt 781,881 446,236 - - 781,881 446,236 Combined utility fund - - 14,140,249 13,836,220 14,140,249 13,836,220 Total expenses 37,100,967 37,517,294 14,140,249 13,836,220 51,241,216 51,353,514 Increase in net assets before transfers 1,175,296 514,995 2,174,311 1,837,878 3,349,607 2,352,873 Transfers 482,316 62,375 (482,316) (62,375) - - Change in net assets 1,657,612 577,370 1,691,995 1,775,503 3,349,607 2,352,873 Net assets-beginning of period 75,033,130 74,455,760 63,866,832 62,091,329 138,899,962 136,547,089 Net assets-end of period 76,690,742$ 75,033,130$ 65,558,827$ 63,866,832$ 142,249,569$ 138,899,962$ Governmental Activities Business-type Activities Total City of Edmonds Changes in Net Assets Governmental activities contributed $1.7 million to the total increase in City net assets. Revenues to fund capital assets are recorded as program or general revenues in the statement of activities. However, asset purchases are not recorded as expenses in the year purchased and construction costs are not recorded as expenses in the year incurred. Instead, the costs are recorded as long-term assets and are depreciated over their useful life. Packet Page 120 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS General tax revenue changes during 2011: • Property tax revenue decreased by $236,317, or 1.7%. This decrease is primarily due to the decrease in assessed valuation in Edmonds. With the Emergency Medical Services property tax levy capped at $0.50 per $1,000 of assessed value, the decline in revenue due to lower assessed valuation more than offset the allowable 1% increase in the City’s regular property tax levy. • Sales tax collections increased by $202,832, or 3.9%. • Utility taxes rose by $248,301 or 4.1%. • Real Estate Excise Tax (REET) revenue decreased by $170,252, or 13.5%. Governmental activity expenses decreased by $416,327, or 1.1%. The decrease reflected the desire of City administration to adapt spending patterns to actual revenue collections throughout the year. The next chart summarizes the government activity revenue by source, while the second one reflects the specific programs’ revenues and related expenses for the various activities of the City. Gaps between specific programs’ revenues and their related expenditures are funded through general tax revenues. Charges for services 22% Operating grants & contributions 0% Capital grants & contributions 5% Property taxes 35% Sales taxes 14% Interfund utility taxes 4% Utility & admission taxes 12% Other taxes 6% Other revenue 2% Revenues by Source - Governmental Activities Packet Page 121 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 Program Revenues and Expenses - Governmental Activities Program revenues Expenses Business-type net assets increased by $1.7 million. Key components of this increase include: • $498,486 of the increase relates to utility capital contributions. • Net Income (Change in Net Assets) went down by $83,508, or 4.7% from 2010. • Operating expenses increased by $341,460, or 2.5%, from 2010. • Net transfers-out totaled $482,316. The transfers generally related to construction costs accounted for in other funds where the utility fund also incurred costs for improvements, such as a water main replacement when a street overlay occurs. The majority of net assets in the City’s enterprise funds relate to capital asset infrastructure, such as water and sewer mains, storm water infrastructure, and the wastewater treatment plant. As such, most of the net assets are not available to support the ongoing expenses of the funds. The following chart depicts major sources of revenue for business-type activities: Packet Page 122 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS Charges for services 80% Capital contributions 3% Intergovernmental revenue 1% Investment earnings & other revenue 0%Business-type miscellaneous income 16% Revenues by Source - Business-Type Activity Financial Analysis of Governmental Funds The purpose of the City’s governmental funds is to report on near-term revenues/financial resources and expenditures. This information helps determine the City’s financial requirements in the near future. Specifically, fund balance is a good indicator of the City’s financial resources. As of December 31, 2011, the City’s governmental funds had combined fund balances of $13,416,024 an increase of $744,220 or 5.9%. This increase is related to: • General fund $701,507 • Street fund ($105,179) • Street construction fund $219,697 • REET 1 fund ($197,114) • Other governmental funds $125,309 Of the governmental funds’ total fund balances, $9,562,178 is unassigned. Restricted fund balances include $1,961,296 earmarked for culture and recreation purposes, $815,498 for transportation purposes, and $242,765 for debt service. Committed fund balances include $419,344 for culture and recreation purposes, and $85,714 for utilities and environment. The general fund is the primary operating fund of the City. All receipts and payments of ordinary City operations are processed through it unless they are accounted for in another fund. At the end of 2011, the general fund had a fund balance of $9,562,638, of which substantially all is unreserved. The fund balance for the general fund is comprised of the following subfunds: • Criminal investigations subfund $2,500 • Emergency financial reserve subfund $1,927,600 • LEOFF medical insurance reserve subfund $320,657 • Public safety emergency reserve subfund $1,338,178 Packet Page 123 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS • Multimodal transportation subfund $55,859 • Building maintenance subfund $212,213 • General fund $5,705,631 Other governmental funds that had significant fund balances include: • Street fund $392,049 • Street construction fund $423,449 • Municipal arts acquisition fund $401,698 • REET 2 fund $436,640 • Cemetery maintenance trust fund $801,079 The following chart shows the relative fund balances for governmental funds: General fund 71% Special revenue funds 27% Debt service funds 2% Governmental Funds - Fund Balances The $701,507 increase in the general fund balance results from revenue of $32,953,180, expenses of $32,162,170, transfers into the fund of $458,252, transfers out of $564,012, and income from capital asset sales of $16,257. In comparison with 2010, revenue decreased by $68,638, expenditures increased by $395,729, transfers out decreased by $1,449,039, transfers in decreased by $116,752, and income from the sale of capital assets decreased by $952,615. General Fund Budgetary Highlights Packet Page 124 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS The City budgets annually by adopting a budget at the end of the preceding year, and then making adjustments as necessary via budget amendments throughout the following year. Following is a summary of such budget amendments: Budgeted general fund balances increased for the following reasons: Target Zero overtime reimbursement grant 5,207$ High visibility enforcement overtime reimbursement grant 285 Alternative fuel vehicle purchase grant 50,944 Insurance recoveries 10,263 Reduce budgeted interfund transfers (79,378) Drug enforcement taskforce overtime grant 2,962 WASPC traffic safety grant 1,700 Target Zero overtime reimbursement grant 2,233 High visibility enforcement overtime reimbursement grant 3,908 Alternative fuel vehicle purchase grant 22,644 20,768$ Budgeted general fund balances decreased for the following reasons: Website upgrades 1,000$ Transportation planning study (UW)9,500 Verizon franchise EG grant 8,514 Target Zero overtime reimbursement grant 5,207 High visibility enforcement overtime reimbursement grant 285 Alternative fuel vehicle purchase grant 50,944 Mail Street repairs (insurance recovery)9,303 Increase budgeted insurance premium expense 108,505 Professional services (interim finance director)55,913 Professional services (city attorney)55,000 Drug enforcement taskforce overtime grant 2,962 WASPC traffic safety grant 1,700 Target Zero overtime reimbursement grant 2,233 High visibility enforcement overtime reimbursement grant 3,908 Alternative fuel vehicle purchase grant 22,644 Traffic calming devices 50,000 HR compensation consultant (45,000) Fire hydrant interfund charges 102,170 Merchant card fees 71,100 Edmonds Center for the Arts loan 153,185 Equipment rental fund O&M charges 280,692 949,765$ Reasons for the significant variances in the general fund between the final budget and actual results include: • Property tax was $180,580 less than budgeted. This is the result of declining assessed values and an Emergency Medical Services levy that is capped at $0.50 per $1,000 of assessed valuation. This decline in the EMS levy more than offset the allowable 1% increase in the City’s regular property tax levy. • Retail sales and use tax was $139,779 more than budgeted. This resulted from minor increases to the City’s retail sales and use tax receipts from taxable retail sales within the City. • Utility taxes were $209,473 less than budget primarily due to a significant decline in telephone utility taxes. This reflected a regional and national trend in declines in telephone utility taxes. The decline of $209,473 is comprised of an increase of $45,468 in interfund utility due to an increase in customers and an increase in rates, and a decrease of $254,941 in general utility. Packet Page 125 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS • Intergovernmental revenue was $793,529 less than budgeted. This was primarily due to budgeted grant revenue that did not materialize due to the project not occurring. • As a result of substantial efforts on the part of the City Council, the Mayor and City Administration, all departments in the City were charged with reducing their overall level of spending. This resulted in nearly all departments ending 2011 with a significant positive variance between budgeted expenditures and actual expenditures. For instance, there was a $220,072 positive variance for Public Safety, and a $338,352 positive variance for Culture and Recreation. The $1,000,000 positive variance for Transportation was the result of a grant funded project that did not occur. Overall departmental expenditures in the General Fund were $2,028,715 less than the amended budget. The efforts of every department to save money where they could meant the City was able to absorb a negative variance in budgeted revenue of $726,512, resulting in an addition to fund balance of $701,507. Financial Analysis of Proprietary Funds The City’s proprietary funds provide the same type of information as found in the government-wide financial statements, but in greater detail. Factors affecting the finances of the City’s proprietary funds have already been addressed in the discussion of the City’s business-type activities. Capital Asset and Debt Administration Capital Assets The City’s investment in capital assets for both its governmental and business-type activities as of December 31, 2011 totaled $138.5 million (net of accumulated depreciation), an increase of $2.7 million from 2010. This investment in capital assets includes land, buildings, improvements, machinery and equipment, construction in progress, utility transmission/distribution systems, roads, and other infrastructure. Major capital asset changes during the year include: • Land, building and right-of-way costs were incurred during the year, resulting in an increase in governmental infrastructure of $1.0 million. • Capital contributions resulted in an increase of $0.5 million in utility infrastructure assets. • $0.8 million was spent by proprietary funds on capital projects during the year. The largest additions were the result of waterline replacements and sewer lift station improvements. A summary of the City’s net assets follows: Packet Page 126 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10 Land 14,530,663$ 14,530,663$ 1,257,106$ 1,128,419$ 15,787,769$ 15,659,082$ Building 12,784,930 13,641,888 22,285,872 22,829,914 35,070,802 36,471,802 Improvements other than buildings 7,191,208 7,637,207 34,059,505 28,114,784 41,250,713 35,751,991 Infrastructure 27,095,351 28,060,898 - - 27,095,351 28,060,898 Machinery and equipment 2,422,704 2,385,481 266,436 270,587 2,689,140 2,656,068 Intangible assets - - 346,776 396,085 346,776 396,085 Construction in progress 8,690,704 7,100,980 7,558,755 9,724,406 16,249,459 16,825,386 Total 72,715,560$ 73,357,117$ 65,774,450$ 62,464,195$ 138,490,009$ 135,821,312$ Summary of Capital Assets (net of depreciation) Governmental Activities Business-type Activities Total More detailed information on capital assets is provided in note 8. Long-term Debt At the end of the current fiscal year, the City had total bonded debt outstanding of $32,795,001. Of this amount, $15,520,201 is general obligation bonds for governmental activities, $3,554,800 is general obligation bonds for business-type activities, for a total of $19,075,001 in general obligation bonds, and $13,720,000 is revenue bonds for the City operated utilities. The City currently maintains a rating of Aa3 with Moody’s for its revenue bonds, Aa2 for voter approved general obligation bonds, and Aa3 for councilmanic general obligation bonds. The following schedule summarizes the City’s long-term debt: As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10 General obligation debt 15,520,201$ 17,157,406$ 3,554,800$ 3,767,595$ 19,075,001$ 20,925,001$ Revenue bonds - - 13,720,000 2,870,000 13,720,000 2,870,000 Capital contracts 1,229,863 1,390,871 - - 1,229,863 1,390,871 Public Works Trust Fund loans 968,095 1,040,296 2,563,901 2,748,774 3,531,996 3,789,070 Total 17,718,159$ 19,588,573$ 19,838,701$ 9,386,369$ 37,556,860$ 28,974,942$ Summary of Long-Term Debt Governmental Activities Business-type Activities Total Economic Factors The continued economic downturn and related slow economic recovery continues to have a negative impact on the City’s revenues, including property tax and real estate excise taxes. City staff has continued to hold the line on spending and therefore the City’s 2012 budget reflects no new programs and is passed in large part on the 2011 estimated actual results with minimal increases to 2011 revenue. Economic Overview The economy of the City of Edmonds is primarily based on retail and service activity, health care and waterfront activity. Located along the shore of Puget Sound about 15 miles north of the City of Seattle and south of Everett, Edmonds is primarily an upper-middle income residential community, with extensive waterfront and water view residential property. Business Districts. The City’s business districts include the Downtown/Waterfront, Highway 99, Westgate, Five Corners, Firdale Village, and Perrinville. Downtown shops and galleries highlight the contemporary, offering everything from best-seller books, fine art, gifts, travel supplies, gourmet food, garden supplies, to the latest in clothing styles, shoes, jewelry, Packet Page 127 of 393 CITY OF EDMONDS MANAGEMENT’S DISCUSSION AND ANALYSIS and unique housewares. Restaurants, cafes, and bistros offer dining experiences near the center of town and beachfront eateries feature scenic views of Puget Sound, the Olympic Mountains, and magnificent sunsets. One of a kind coffee shops, wine bars and cuisine from around the world offer many choices - from a quick break to relaxed dining. The Harbor Square shopping area offers 60 businesses, including an athletic club and a hotel. More shopping and dining can be found along Highway 99 and in the neighborhood commercial districts of Westgate, Five Corners, Firdale Village and Perrinville. Healthcare. Swedish Edmonds Hospital, which originally opened in 1964 is a full service facility licensed for 217 and staffed by 450+ physicians and specialists. Prior to joining Swedish, the Edmonds hospital (formerly known as Stevens Hospital) was governed by the Public Hospital District No. 2 of Snohomish County. The District's Board of Commissioners no longer oversees the day-to-day operations at Swedish/Edmonds, but is still involved in some of the major decisions. It also manages the Verdant Health Commission, formerly South Snohomish County Commission for Health, to promote good health in the surrounding communities. Transportation. The Edmonds/Kingston ferry connects south Snohomish County and north King County with the Kitsap Peninsula and, via the Hood Canal Bridge, the Olympic Peninsula. A Burlington Northern Railroad line runs adjacent to the Edmonds’ shoreline and is used for Sound Transit Commuter and Amtrak passenger rail service and moving freight. Community Transit provides local and commuter bus service. Waterfront. The Edmonds waterfront area includes four public beaches, a public fishing pier, off-leash dog area, and the oldest underwater park on the West Coast and Port. The 950-foot long fishing pier, located just south of the ferry terminal, includes benches, lighting and bait and cleaning areas, and is open year-round, 24 hours a day. Edmonds Underwater Park, the oldest of its kind on the West Coast, is located just north of the ferry terminal. The 32-acre park was dedicated as a marine preserve in 1971, and provides divers with a number of underwater structures and a wide variety of fish and plant life to explore. The Port of Edmonds operates a marina with approximately 729 moorage slips in the water and 350 spaces for dry boat storage. The marina provides guest moorage, public launching and parking facilities, a 35-ton travelift, a pressure washing facility, and a workyard. The port’s charter fishing fleet attracts more than 10,000 customers annually, making it the third largest in the State. Parks and Art. Residents and visitors can walk along an award winning waterfront walkway, access four public beaches, swim at outdoor Yost pool, use an the Off Leash Area for their dogs, go to a summer concerts at downtown City Park, take a picnic and enjoy views from public parks and beaches, take self- guided walking tours of public art, view murals in the downtown area, attend an annual Arts Festival and Third Thursday Artwalks, and attend performing art events at Edmonds Center for the Arts, and live theatre at Wade James and Phoenix Theaters. Requests for Information The City’s financial statements are designed to provide users with a general overview of the City’s finances as well as to demonstrate the City’s accountability to its citizens, investors, creditors, and other customers. If you have a question about the report, please contact the Finance Director, 121 Fifth Avenue North, Edmonds, Washington, WA 98020, (425) 771-0240. Packet Page 128 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS COMPONENT UNIT - GOVERNMENTAL BUSINESS-TYPE EDMONDS PUBLIC ACTIVITIES ACTIVITIES TOTAL FACILITIES DISTRICT ASSETS: CASH AND CASH EQUIVALENTS (Note 3)16,243,967$ 18,089,236$ 34,333,203$ 10,690$ RECEIVABLES: TAXES 483,678 - 483,678 - CUSTOMER ACCOUNTS 703,005 2,048,328 2,751,333 108,162 OTHER RECEIVABLES 669,766 - 669,766 75,941 SPECIAL ASSESSMENTS 31,440 - 31,440 - DUE FROM OTHER GOVERNMENTAL UNITS 2,783,814 950,480 3,734,294 - MATERIALS AND SUPPLIES INVENTORY 32,848 101,006 133,854 2,262 DEFERRED CHARGES 33,152 333,401 366,553 133,631 RESTRICTED ASSETS: CASH AND CASH EQUIVALENTS (Note 3)- 984,163 984,163 90,788 SPECIAL ASSESSMENTS 113,930 - 113,930 - DUE FROM COMPONENT UNIT, LONG-TERM 5,240,000 - 5,240,000 - INVESTMENT IN JOINT VENTURE 511,074 - 511,074 - DEPRECIABLE CAPITAL ASSETS (NET OF ACCUMULATED DEPRECIATION): (Note 8)49,494,193 56,958,589 106,452,782 11,191,703 NON-DEPRECIABLE CAPITAL ASSETS 23,221,367 8,815,861 32,037,228 3,444,885 TOTAL ASSETS 99,562,234 88,281,064 187,843,298 15,058,062 LIABILITIES: ACCOUNTS PAYABLE 857,703 1,631,051 2,488,754 226,562 WAGES AND BENEFITS PAYABLE 758,640 166,417 925,057 60,559 INTERNAL BALANCES (147,790) 147,790 - - DUE TO OTHER GOVERNMENTAL UNITS - 87,983 87,983 310,176 OTHER LIABILITIES PAYABLE 173,487 261,473 434,960 6,227 PAYABLE FROM RESTRICTED ASSETS: ACCRUED INTEREST 59,076 12,531 71,607 - DEPOSITS - 4,698 4,698 39,843 UNEARNED REVENUE - 2,974 2,974 162,715 DEFERRED CREDITS - 204,306 204,306 8,538 BONDS AND OTHER DEBT PAYABLE: NET PENSION OBLIGATION 220,065 - 220,065 - NET OTHER POST EMPLOYMENT OBLIGATION 437,472 - 437,472 - DUE WITHIN ONE YEAR (Note 12)3,889,221 1,273,534 5,162,755 305,000 DUE IN MORE THAN ONE YEAR (Note 12)16,623,618 18,929,480 35,553,098 8,670,000 TOTAL LIABILITIES 22,871,492 22,722,237 45,593,729 9,789,620 NET ASSETS: INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 61,004,928 45,783,325 106,788,253 5,736,843 RESTRICTED FOR: DEBT SERVICE 242,765 4,698 247,463 90,788 PUBLIC SAFETY 124,661 - 124,661 - TRANSPORTATION 815,498 984,163 1,799,661 - CULTURE AND RECREATION 1,995,476 - 1,995,476 - ECONOMIC ENVIRONMENT 93,895 - 93,895 - CONSTRUCTION - 8,107,754 8,107,754 - OTHER PURPOSES 16,562 - 16,562 - UNRESTRICTED NET ASSETS 12,396,957 10,678,887 23,075,844 (559,189) TOTAL NET ASSETS 76,690,742$ 65,558,827$ 142,249,569$ 5,268,442$ The notes to the financial statements are an integral part of this statement. PRIMARY GOVERNMENT CITY OF EDMONDS, WASHINGTON STATEMENT OF NET ASSETS DECEMBER 31, 2011 Packet Page 129 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS OPERATING CAPITAL CHARGES GRANTS AND GRANTS AND EXPENSES FOR SERVICES CONTRIBUTIONS CONTRIBUTIONS FUNCTIONS / PROGRAMS: PRIMARY GOVERNMENT: GOVERNMENTAL ACTIVITIES: GENERAL GOVERNMENT 8,092,028$ 4,078,403$ 3,280$ 164,239$ PUBLIC SAFETY 18,037,057 1,212,082 27,597 - TRANSPORTATION 3,412,126 1,024,049 480 631,841 PHYSICAL ENVIRONMENT 1,405,398 235,973 61,437 - CULTURE AND RECREATION 4,298,852 875,663 25,948 975,119 ECONOMIC ENVIRONMENT 1,063,894 796,994 26,664 - HEALTH AND HUMAN SERVICES 9,731 155,533 - - INTEREST ON LONG-TERM DEBT 781,881 - - - TOTAL GOVERNMENTAL ACTIVITIES 37,100,967 8,378,697 145,406 1,771,199 BUSINESS-TYPE ACTIVITIES: COMBINED UTILITY OPERATION 14,140,249 15,620,997 179,479 498,486 TOTAL BUSINESS-TYPE ACTIVITIES 14,140,249 15,620,997 179,479 498,486 TOTAL PRIMARY GOVERNMENT 51,241,216$ 23,999,694$ 324,885$ 2,269,685$ COMPONENT UNIT: EDMONDS PUBLIC FACILITIES DISTRICT 2,435,175$ 850,208$ 570,379$ -$ TOTAL COMPONENT UNIT 2,435,175$ 850,208$ 570,379$ -$ GENERAL REVENUES: TAXES: PROPERTY RETAIL SALES AND USE INTERFUND UTILITY UTILITY EXCISE OTHER PAYMENTS FROM COMPONENT UNIT INVESTMENT EARNINGS MISCELLANEOUS GAIN (LOSS) ON SALE OF CAPITAL ASSETS TRANSFERS (Note 6) TOTAL GENERAL REVENUES CHANGE IN NET ASSETS NET ASSETS - BEGINNING NET ASSETS - ENDING The notes to the financial statements are an integral part of this statement. PROGRAM REVENUES Page 1 of 2 CITY OF EDMONDS, WASHINGTON STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2011 Packet Page 130 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS Page 2 of 2 COMPONENT UNIT GOVERNMENTAL BUSINESS-TYPE EDMONDS PUBLIC ACTIVITIES ACTIVITY TOTAL FACILITIES DISTRICT (3,846,106)$ -$ (3,846,106)$ (16,797,378) - (16,797,378) (1,755,756) - (1,755,756) (1,107,988) - (1,107,988) (2,422,122) - (2,422,122) (240,236) - (240,236) 145,802 - 145,802 (781,881) - (781,881) (26,805,665) - (26,805,665) - 2,158,713 2,158,713 - 2,158,713 2,158,713 (26,805,665) 2,158,713 (24,646,952) (1,014,588)$ (1,014,588) 13,539,536 - 13,539,536 - 5,286,262 - 5,286,262 409,569 1,517,150 - 1,517,150 - 4,715,339 - 4,715,339 - 1,368,160 - 1,368,160 - 1,020,419 - 1,020,419 - 396,493 - 396,493 - 16,070 15,287 31,357 457 84,770 311 85,081 - 36,762 - 36,762 - 482,316 (482,316) - - 28,463,277 (466,718) 27,996,559 410,026 1,657,612 1,691,995 3,349,607 (604,562) 75,033,130 63,866,832 138,899,962 5,873,004 76,690,742$ 65,558,827$ 142,249,569$ 5,268,442$ CHANGES IN NET ASSETS NET (EXPENSE) REVENUE AND PRIMARY GOVERNMENT Packet Page 131 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS OTHER TOTAL GENERAL GOVERNMENTAL GOVERNMENTAL FUND FUNDS FUNDS ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS 8,552,779$ 2,994,883$ 11,547,662$ RECEIVABLES: TAXES 483,678 - 483,678 CUSTOMER ACCOUNTS 701,728 85 701,813 SPECIAL ASSESSMENTS - 31,440 31,440 DUE FROM COMPONENT UNIT 5,240,000 - 5,240,000 INTERFUND RECEIVABLE (Note 6)147,790 49,936 197,726 DUE FROM OTHER GOVERNMENTAL UNITS 1,328,389 1,454,571 2,782,960 SUPPLIES INVENTORY 460 - 460 LONG-TERM ASSETS: DEFERRED SPECIAL ASSESSMENTS - 113,930 113,930 TOTAL ASSETS 16,454,824$ 4,644,845$ 21,099,669$ LIABILITIES AND FUND BALANCES: CURRENT LIABILITIES: ACCOUNTS PAYABLE 327,091$ 489,679$ 816,770$ WAGES AND BENFITS PAYABLE 720,503 24,591 745,094 INTERFUND PAYABLE (Note 6)- 49,936 49,936 OTHER LIABILITIES PAYABLE 93,553 79,934 173,487 LONG-TERM LIABILITIES: DEFERRED REVENUE 5,751,039 147,319 5,898,358 TOTAL LIABILITIES 6,892,186 791,459 7,683,645 FUND BALANCES: NON-SPENDABLE: INVENTORY 460 - 460 RESTRICTED FOR: DEBT SERVICE - 242,765 242,765 PUBLIC SAFETY - 124,661 124,661 TRANSPORTATION - 815,498 815,498 CULTURE AND RECREATION - 1,995,476 1,995,476 ECONOMIC ENVIRONMENT - 93,895 93,895 OTHER PURPOSES - 16,102 16,102 COMMITTED TO: UTILITIES AND ENVIRONMENT - 85,714 85,714 CULTURE AND RECREATION - 401,698 401,698 GENERAL GOVERNMENT 1,927,600 - 1,927,600 OTHER PURPOSES - 77,577 77,577 UNASSIGNED 7,634,578 - 7,634,578 TOTAL FUND BALANCES 9,562,638 3,853,386 13,416,024 TOTAL LIABILITIES AND FUND BALANCES 16,454,824$ 4,644,845$ 21,099,669$ The notes to the financial statements are an integral part of this statement. CITY OF EDMONDS, WASHINGTON BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2011 Packet Page 132 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS Total governmental fund balances as reported on this statement 13,416,024$ Amounts reported for governmental activities in the statement of net assets are different because: Land 14,530,663$ Construction in progress 8,690,704 Subtotal: Non-depreciable capital assets 23,221,367 Investment in joint venture 511,074 Buildings 25,479,908 Improvements other than buildings 13,531,609 Infrastructure 55,732,774 Machinery and equipment - general government 7,542,487 Less: Accumulated depreciation (52,792,585) Subtotal: Depreciable capital assets 49,494,193 73,226,634 Court receivable 669,766 Deferred charges 33,152 702,918 4,621,977 General obligation bonds (15,520,201) Compensated absences ($2,794,680 total liability, less $54,283 attributable to internal service funds)(2,740,396) Capital contracts (1,229,863) Public works trust fund loans (968,096) Subtotal: Long-term debt payable (20,458,556) Accrued interest (59,076) Net pension obligation (220,065) Net other post employment benefit obligation (437,472) Unearned revenues reported as deferred revenues in the Balance Sheet - Governmental Funds are not reported in the government-wide Statement of Net Assets (Note 1)5,898,358 (15,276,811) Net assets of government activities as reported on the statement of net assets 76,690,742$ The notes to the financial statements are an integral part of this statement. Capital assets used in governmental activities are not financial resources and therefore not reported in the funds. These assets consist of: Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds. Internal service funds are used by management to charge the cost of equipment maintenance to individual funds. The assets and liabilities of these internal service funds are included in governmental activities in the statement of net assets. Capital assets of $2,040,916 are included in the capital asset adjustment above. Compensated absence liability of $54,283 is included in the adjustment below. Some liabilities are not due and payable in the current period and therefore are not reported in the funds. CITY OF EDMONDS, WASHINGTON RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS DECEMBER 31, 2011 GOVERNMENTAL FUNDS Packet Page 133 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS OTHER TOTAL GENERAL GOVERNMENTAL GOVERNMENTAL FUND FUNDS FUNDS REVENUES: TAXES: PROPERTY 13,436,557$ -$ 13,436,557$ RETAIL SALES & USE 5,210,771 75,491 5,286,262 INTERFUND UTILITY 1,517,150 - 1,517,150 UTILITY 4,715,339 - 4,715,339 EXCISE 280,162 1,087,998 1,368,160 LICENSES AND PERMITS 1,666,296 22,850 1,689,146 INTERGOVERNMENTAL 1,199,610 2,821,864 4,021,474 CHARGES FOR SERVICES 3,859,869 1,155,965 5,015,834 FINES AND FORFEITURES 690,079 66,303 756,382 SPECIAL ASSESSMENTS - 104,409 104,409 INVESTMENT EARNINGS 10,076 5,994 16,070 MISCELLANEOUS 367,271 61,351 428,622 TOTAL REVENUES 32,953,180 5,402,225 38,355,405 EXPENDITURES: CURRENT: GENERAL GOVERNMENT SERVICES 7,312,884 1,618 7,314,502 PUBLIC SAFETY 17,746,935 58,743 17,805,678 UTILITIES AND ENVIRONMENT 1,231,601 143,255 1,374,856 TRANSPORTATION - 1,423,361 1,423,361 ECONOMIC ENVIRONMENT 1,031,189 4,580 1,035,769 MENTAL AND PHYSICAL HEALTH 9,731 - 9,731 CULTURE AND RECREATION 3,396,054 354,069 3,750,123 DEBT SERVICE: PRINCIPAL 1,094,128 776,286 1,870,414 INTEREST AND OTHER COSTS 339,648 443,460 783,108 CAPITAL OUTLAY - 2,700,549 2,700,549 TOTAL EXPENDITURES 32,162,170 5,905,921 38,068,091 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 791,010 (503,696) 287,314 OTHER FINANCING SOURCES (USES): SALES OF CAPITAL ASSETS 16,257 9,271 25,528 TRANSFERS IN (Note 6)458,252 1,710,920 2,169,172 TRANSFERS OUT (Note 6)(564,012) (1,173,786) (1,737,798) TOTAL OTHER FINANCING SOURCES AND USES (89,503) 546,405 456,902 NET CHANGE IN FUND BALANCES 701,507 42,709 744,216 FUND BALANCES - BEGINNING 8,861,131 3,810,677 12,671,808 FUND BALANCES - ENDING 9,562,638$ 3,853,386$ 13,416,024$ The notes to the financial statements are an integral part of this statement. CITY OF EDMONDS, WASHINGTON STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2011 Packet Page 134 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS Net change in fund balances per the Statement of Revenues, Expenditures and Changes in Fund Balance 744,216$ Amount reported as change in net assets in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay ($3,030,410) is exceeded by depreciation and amortization ($3,738,102) in the current period. Capital outlays 3,030,284$ Internal service fund - capital outlays 400,778 Current year depreciation (includes $334,518 for internal service fund)(4,072,620) Adjustment in investment in joint venture (66,134) (707,692) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Deferred taxes 102,979 Other deferred revenue (240,764) Record of court receivable 20,046 (117,739) Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of long-term debt is an expenditure in the governmental funds, yet the repayment reduces long-term liabilities in the statement of net assets. This is the amount by which repayments exceeded proceeds. Amortization of deferred charges (4,375) Long-term debt repayments 1,870,415 1,866,040 Internal service funds are used by management to charge the costs of equipment rental to individual funds. The net revenue (expense) of this internal service fund is reported with governmental activities. Capital activity of $66,259 is included in the capital asset adjustment above. 35,822 Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Accrued interest expense 5,602 Net pension obligation (38,811) Net other post-employment benefit obligation 27,045 Accrued compensating absence expense ($159,695 total expenditure less $2,824 attributable to internal service funds)(156,871) (163,035) Change in net assets on the Statement of Activities 1,657,612$ The notes to the financial statements are an integral part of this statement. CITY OF EDMONDS, WASHINGTON RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2011 Packet Page 135 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS ORIGINAL FINAL BUDGET BUDGET ACTUAL VARIANCE WITH (GAAP BASIS) (GAAP BASIS) RESULTS FINAL BUDGET REVENUES: TAXES: PROPERTY 13,617,137$ 13,617,137$ 13,436,557$ (180,580)$ RETAIL SALES & USE 5,070,992 5,070,992 5,210,771 139,779 INTERFUND UTILITY 1,471,682 1,471,682 1,517,150 45,468 UTILITY 4,970,280 4,970,280 4,715,339 (254,941) EXCISE 311,981 311,981 280,162 (31,819) LICENSES AND PERMITS 1,484,829 1,484,829 1,666,296 181,467 INTERGOVERNMENTAL 1,837,255 1,993,139 1,199,610 (793,529) CHARGES FOR SERVICES 3,637,480 3,637,479 3,859,869 222,390 FINES AND FORFEITURES 667,100 667,100 690,079 22,979 INVESTMENT EARNINGS 1,000 1,000 10,076 9,076 MISCELLANEOUS 389,073 454,073 367,271 (86,802) TOTAL REVENUES 33,458,809 33,679,692 32,953,180 (726,512) EXPENDITURES: CURRENT: GENERAL GOVERNMENT 7,267,549 7,513,984 7,312,884 201,100 PUBLIC SAFETY 17,632,346 17,967,007 17,746,935 220,072 UTILITIES AND ENVIRONMENT 1,250,601 1,255,801 1,231,601 24,200 TRANSPORTATION 1,000,000 1,000,000 - 1,000,000 ECONOMIC ENVIRONMENT 1,246,759 1,257,459 1,031,189 226,270 MENTAL AND PHYSICAL HEALTH 10,100 10,100 9,731 369 CULTURE AND RECREATION 3,505,225 3,734,406 3,396,054 338,352 DEBT SERVICE 1,452,128 1,452,128 1,433,776 18,352 TOTAL EXPENDITURES 33,364,708 34,190,885 32,162,170 2,028,715 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 94,101 (511,193) 791,010 1,302,203 OTHER FINANCING SOURCES (USES): SALES OF CAPITAL ASSETS - 16,257 16,257 - TRANSFERS IN (Note 6)537,630 458,252 458,252 - TRANSFERS OUT (Note 6)(557,689) (681,277) (564,012) 117,265 TOTAL OTHER FINANCING SOURCES AND USES (20,059) (206,768) (89,503) 117,265 NET CHANGE IN FUND BALANCES 74,042 (717,961) 701,507 1,419,468 FUND BALANCES - BEGINNING 6,626,555 6,687,492 8,861,131 2,173,639 FUND BALANCES - ENDING 6,700,597$ 5,969,531$ 9,562,638$ 3,593,107$ The notes to the financial statements are an integral part of this statement. FOR THE YEAR ENDED DECEMBER 31, 2011 CITY OF EDMONDS, WASHINGTON STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND Packet Page 136 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS 411 / 412 / 414 GOVERNMENTAL COMBINED ACTIVITIES UTILITY INTERNAL FUNDS SERVICE FUNDS ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS 18,089,236$ 4,696,305$ CUSTOMER ACCOUNTS 2,048,328 1,192 DUE FROM OTHER GOVERNMENTAL UNITS 950,480 854 INVENTORY 101,006 32,388 TOTAL CURRENT ASSETS 21,189,050 4,730,739 LONG-TERM ASSETS: RESTRICTED CASH, BOND RESERVES 984,163 - DEFERRED CHARGES 333,401 - CAPITAL ASSETS: DEPRECIABLE CAPITAL ASSETS (NET OF ACCUMULATED DEPRECIATION)57,868,919 2,040,916 CONSTRUCTION IN PROGRESS 7,558,755 - INTANGIBLE ASSETS 346,776 - TOTAL CAPITAL ASSETS (NET OF A/D)65,774,450 2,040,916 TOTAL LONG-TERM ASSETS 67,092,014 2,040,916 TOTAL ASSETS 88,281,064 6,771,655 LIABILITIES: CURRENT LIABILITIES: ACCOUNTS PAYABLE 1,631,051 40,933 WAGES AND BENEFITS PAYABLE 166,417 67,829 COMPENSATED ABSENCES 416,194 - INTERFUND PAYABLES 147,790 - PUBLIC WORKS TRUST FUND LOANS PAYABLE-CURRENT 216,842 - REVENUE BONDS PAYABLE-CURRENT (NET OF UNAMORTIZED PREMIUM/DISCOUNT)418,118 - GENERAL OBLIGATION BONDS PAYABLE-CURRENT 222,380 - ACCRUED INTEREST 12,531 - DEPOSITS 4,698 - DUE TO OTHER GOVERNMENTAL UNITS 87,983 - OTHER LIABILITIES PAYABLE 261,473 - TOTAL CURRENT LIABILITIES 3,585,477 108,762 LONG-TERM LIABILITIES: DEFERRED REVENUE 2,974 - DEFERRED CREDITS 204,306 - LOANS PAYABLE 2,347,060 - REVENUE BONDS PAYABLE 13,250,000 - GENERAL OBLIGATION BONDS PAYABLE 3,332,420 - TOTAL LONG-TERM LIABILITIES 19,136,760 - TOTAL LIABILITIES 22,722,237 108,762 NET ASSETS: INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 45,783,325 2,040,916 RESTRICTED FOR: DEBT SERVICE 984,163 - CUSTOMER DEPOSITS 4,698 - CONSTRUCTION 8,107,754 - UNRESTRICTED 10,678,887 4,621,977 TOTAL NET ASSETS 65,558,827$ 6,662,893$ The notes to the financial statements are an integral part of this statement. CITY OF EDMONDS, WASHINGTON STATEMENT OF NET ASSETS PROPRIETARY FUNDS DECEMBER 31, 2011 Packet Page 137 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS 411 / 412 / 414 GOVERNMENTAL COMBINED ACTIVITIES UTILITY INTERNAL FUNDS SERVICE FUNDS OPERATING REVENUES: CHARGES FOR SERVICES 12,983,391$ 1,232,876$ OTHER OPERATING REVENUE 2,637,606 - TOTAL OPERATING REVENUES 15,620,997 1,232,876 OPERATING EXPENSES: PERSONNEL SERVICES 3,900,516 316,789 OPERATIONS & MAINTENANCE 6,886,869 532,377 PROFESSIONAL SERVICES 183,706 983 INSURANCE 416,576 25,259 DEPRECIATION/AMORTIZATION 2,447,218 334,518 TOTAL OPERATING EXPENSES 13,834,885 1,209,926 OPERATING INCOME (LOSS)1,786,112 22,950 NON-OPERATING REVENUE (EXPENSE): INTERGOVERNMENTAL 179,479 - INVESTMENT EARNINGS 15,287 7,530 OTHER NON-OPERATING REVENUES 311 9,424 GAIN (LOSS) ON SALE OF CAPITAL ASSETS - 11,234 INTEREST EXPENSE (305,364) - TOTAL NON-OPERATING REVENUE (EXPENSE)(110,287) 28,188 INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 1,675,825 51,138 CAPITAL CONTRIBUTIONS 498,486 - TRANSFERS IN (Note 6)- 50,942 TRANSFERS OUT (Note 6)(482,316) - CHANGE IN NET ASSETS 1,691,995 102,080 TOTAL NET ASSETS BEGINNING OF YEAR 63,866,832 6,560,813 TOTAL NET ASSETS END OF YEAR 65,558,827$ 6,662,893$ The notes to the financial statements are an integral part of this statement. CITY OF EDMONDS, WASHINGTON STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2011 Packet Page 138 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS Page 1 of 2 411 / 412 / 414 GOVERNMENT COMBINED ACTIVITIES UTILITY INTERNAL FUNDS SERVICE FUNDS CASH FLOWS FROM OPERATING ACTIVITIES: CASH RECEIVED FROM USERS 15,259,781$ 1,232,876$ CASH PAID TO SUPPLIERS (6,512,726) (528,651) CASH PAID FOR INVENTORY (2,598) 17,505 CASH PAID TO EMPLOYEES (3,894,857) (313,602) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 4,849,600 408,127 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: INTERFUND LOAN 11,805 - INTERGOVERNMENTAL TRANSFER 179,479 - TRANSFERS IN - 50,942 TRANSFERS OUT (482,316) - NET CASH PROVIDED (USED) BY NON- CAPITAL FINANCING ACTIVITIES (291,032) 50,942 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: PROCEEDS FROM SALE OF EQUIPMENT 311 11,234 PURCHASE OF CAPITAL ASSETS (5,757,474) (400,778) CONTRIBUTED CAPITAL 498,486 - PROCEEDS FROM INSURANCE SETTLEMENT - 9,424 PREMIUM & BOND ISSUANCE COSTS 339,522 - PRINCIPAL PAYMENT ON DEBT (2,727,054) - INTEREST PAYMENT ON DEBT (318,826) - PROCEEDS FROM CAPITAL DEBT 12,929,141 - NET CASH PROVIDED (USED) FOR CAPITAL AND RELATED FINANCING ACTIVITIES 4,964,106 (380,120) CASH FLOW FROM INVESTING ACTIVITIES: INTEREST RECEIVED 15,287 7,530 NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 15,287 7,530 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 9,537,961 86,480 CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR 9,535,438 4,609,825 CASH AND CASH EQUIVALENTS-END OF YEAR 19,073,399$ 4,696,305$ CASH AT END OF YEAR CONSISTS OF: CASH AND CASH EQUIVALENTS 18,089,236$ 4,696,305$ RESTRICTED CASH-BOND PAYMENTS 984,163 - TOTAL CASH 19,073,399$ 4,696,305$ The notes to the financial statements are an integral part of this statement. CITY OF EDMONDS, WASHINGTON STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011 Packet Page 139 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS Page 2 of 2 411 / 412 / 414 GOVERNMENT COMBINED ACTIVITIES UTILITY INTERNAL FUNDS SERVICE FUNDS RECONCILIATION OF NET OPERATING INCOME TO NEW CASH PROVIDED BY OPERATING ACTIVITIES OPERATING INCOME (LOSS)1,786,112$ 22,950$ ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: DEPRECIATION 2,447,218 334,519 ASSET (INCREASES) DECREASES : DUE FROM OTHER GOVERNMENTAL UNITS (189,464) (854) MISCELLANEOUS A/R-REVENUE (138,867) - INVENTORY (2,598) 17,505 LIABILITY (INCREASES) DECREASES : ACCOUNTS & VOUCHERS PAYABLE 1,133,029 30,819 DEPOSITS PAYABLE 6,144 - WAGES & BENEFITS PAYABLE - 3,188 DUE TO GOVERNMENTAL UNIT (201,162) - RETAINAGE PAYABLE (21,487) - DEFERRED REVENUE 30,675 - TOTAL ADJUSTMENTS 3,063,488 385,177 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 4,849,600$ 408,127$ The notes to the financial statements are an integral part of this statement. FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011 CITY OF EDMONDS, WASHINGTON STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Packet Page 140 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS 617 FIREMEN'S PENSION FUND ASSETS: CASH AND CASH EQUIVALENTS 217,903$ TOTAL ASSETS 217,903$ LIABILITIES: CURRENT PAYABLES 4,693$ TOTAL LIABILITIES 4,693 NET ASSETS: HELD IN TRUST FOR PENSION BENEFITS AND OTHER PURPOSES 213,210$ The notes to the financial statements are an integral part of this statement. CITY OF EDMONDS, WASHINGTON STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS DECEMBER 31, 2011 Packet Page 141 of 393 CITY OF EDMONDS BASIC FINANCIAL STATEMENTS 617 FIREMEN'S PENSION FUND ADDITIONS: EMPLOYER CONTRIBUTIONS 48,023$ FIRE INSURANCE PREMIUMS 78 INVESTMENT EARNINGS 389 TOTAL ADDITIONS 48,490 DEDUCTIONS: BENEFIT PAYMENTS 102,274 PROFESSIONAL SERVICES 326 TOTAL DEDUCTIONS 102,600 CHANGE IN NET ASSETS (54,110) NET ASSETS - BEGINNING 267,320 NET ASSETS - ENDING 213,210$ The notes to the financial statements are an integral part of this statement. CITY OF EDMONDS, WASHINGTON STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2011 Packet Page 142 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of the City of Edmonds, which conform to generally accepted accounting principles for governments as prescribed by the Governmental Accounting Standards Board (GASB), are regulated by the Washington State Auditor's Office. The City's significant accounting policies are described below. A. REPORTING ENTITY The City of Edmonds was incorporated in 1890 and operates under a Council/Mayor form of government. The City Council is composed of seven members elected at large who each serve a four-year term. The Mayor is elected at large and serves a four-year term. The Mayor is responsible for all City affairs. The City provides a full range of general government services: including public safety, streets, parks and recreation, planning and zoning, permits and inspection, general administration, and water, sewer, storm water and wastewater treatment utilities. The accompanying financial statements include all funds, agencies, and boards controlled by or dependent on the City. Criteria used to determine agency dependence on the City were: selection of the governing body, budget adoption, taxing authority, outstanding debt service secured by City revenues or general obligations, City obligation to finance possible deficits, or receipt of significant City subsidies. Discretely Presented Component Unit - The Edmonds City Council formed the Edmonds Public Facilities District (PFD) on April 24, 2001 by Ordinance. The PFD was created under the authority provided by the legislature during the 1999 State legislative session, since codified as RCW 35.57. The purpose of the PFD is to construct and operate a “regional center” in the City of Edmonds. RCW 35.57 defines a regional center as a conference, convention or special events center along with related parking. A five member board governs the PFD and is appointed to four-year terms by the City Council. The PFD has authority under state law to issue debt, levy certain taxes, and enter into contracts. In 2002 the City Issued Limited Tax General Obligation Bonds for the acquisition, renovation and remodeling of a Performing Arts Center by the PFD in the amount of $7,015,000. These proceeds were transferred to the PFD. The bonds are a debt of the City and not the PFD; however the PFD is obligated by inter-local agreement to transfer sales tax rebate revenues to the City to help offset the City’s debt service costs over the life of the bonds. In 2008 the PFD issued bonds to retire short-term debt it had issued to complete construction of the Edmonds Center for the Arts. The PFD is currently not able to meet its debt service obligation on the 2008 bonds. However, the City guarantees repayment of those bonds through a Contingent Loan Agreement. Advances by the City to the PFD for debt service on the 2008 bonds are shown in the City’s Statement of Net Assets as a Due from Other Governmental Unit. More information about the PFD, including complete financial statements, can be obtained from Edmonds Performing Arts Center, c/o Joe McIalwain, 401 Fourth Ave. N. Edmonds, WA 98020. Blended Component Unit - The Edmonds Transportation Benefit District is governed by the seven–member board appointed by the City of Edmonds Council. Although it is legally separated from the City of Edmonds the Edmonds Transportation Benefit District is reported as if it were part of the primary government because its sole purpose is to finance and construct City of Edmonds streets. Joint Ventures - A joint venture is an organization that results from a contractual arrangement and is owned, operated, or governed by two or more participants as a Packet Page 143 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS separate activity. In addition to joint control, each participant must have either an ongoing financial interest or an ongoing financial responsibility. The City participates in a single joint venture with Snohomish County and other local governments in the Snohomish County Emergency Radio System. See note 16 for additional information. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e. the statement of net assets and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. Government activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. The City has allocated certain indirect costs that are included in the program expense reported for individual functions and activities. Taxes and other items not properly included among program revenues are reported as general revenues. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government’s water and sewer function and other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. The fiduciary funds are not included in the government-wide financial statements. Major individual funds are reported as separate columns, while the remaining funds are combined for presentation purposes in the governmental funds statements and the proprietary funds statements. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND BASIS OF PRESENTATION The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures or expenses, as appropriate. The City resources are allocated to, and accounted for in, individual funds according to the purpose for which they are spent and how they are controlled. The basis of accounting refers to the timing of when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Packet Page 144 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS The government-wide financial statements (i.e. the statement of net assets and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. Government activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of net assets presents the reporting entity’s nonfiduciary assets and liabilities, with the difference reported as net assets. Net assets are reported in three categories:  Invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation and reduced by outstanding balances for bonds, notes, and other debt that are attributed to the acquisition , construction, or improvement of those assets.  Restricted net assets result when constraints placed on net asset use are either externally imposed by creditors, grantors, contributors, and the like, or imposed by law through constitutional provisions or enabling legislation.  Unrestricted net assets consist of net assets that do not meet the definition of the two preceding categories. Unrestricted net assets often are designated to indicate that management does not consider them available for general operations. Unrestricted net assets often have constraints on resources that are imposed by management, but can me modified or removed. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. The City has allocated certain indirect costs that are included in the program expense reported for individual functions and activities. Taxes and other items not properly included among program revenues are reported as general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and pension trust fund financial statements. Interfund services provided and used are not eliminated in the process of consolidation. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The modified accrual basis of accounting is followed in all governmental and permanent funds of the City. Under the modified accrual basis of accounting, revenues are recognized when measurable and available. Revenues are generally considered available if they are collected within the current period or soon enough thereafter (60 days) to pay current liabilities. For derived tax revenues, such as sales tax and utility business and occupation taxes, revenues are recognized in the period when the underlying exchange has occurred. For imposed non-exchange taxes, such as property taxes, revenues are recognized when the use of resources is permitted, or when resources are available. Grant revenue is recognized in the period in which the expenditure occurs and the eligibility requirements have been met. Non-exchange Packet Page 145 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS transactions, such as contributions, are recognized when the donation eligibility requirements have been satisfied. Those specific major revenue sources accrued are: The accrual basis of accounting is followed in all proprietary, agency, and pension trust funds. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when incurred. Major Governmental Funds - The General Fund is the general operating fund of the City and accounts for all activities not required to be accounted for in some other fund. Proprietary Fund - The Combined Utility Operation Fund accounts for the provision of water, sewer, storm water and wastewater treatment services to the residents of the City and some residents of Mountlake Terrace, Lynnwood, Woodway, Olympic View Water District and Ronald Wastewater District. All activities necessary to provide such services are accounted for in this fund, including but not limited to, administration, financing, and related debt service, billing, and collection. The proprietary fund statements distinguish operating revenues and expenses from non- operating items. Operating revenues and expenses result from providing services and delivering goods in connection with principal ongoing operations. The principal operating revenues of the City’s utility fund are charges to customers for sales and service. The City also recognizes as operating revenue the portion of utility connection fees intended to recover the cost of connecting new customers to the water and sewer systems. Operating expenses for enterprise funds include operating and maintenance costs, employee benefit expenses, contracted services, insurance and depreciation on capital assets. All other revenues and expenses are reported as non-operating revenues and expenses. Internal Service and Fiduciary Funds - The Equipment Rental Fund is an internal service fund used to account for the Fleet Maintenance Division. The Fleet Maintenance Division is responsible for maintaining the City’s vehicle fleet. Fiduciary funds are used to account for City assets held in a trustee capacity or as an agent for individuals, private organizations, and other governments. These funds share characteristics with both the government and proprietary funds and therefore, as described below, use the measurement focus and basis of accounting most appropriate to their specific operations. The Firemen’s Pension Fund accounts for a single employer defined benefit system established under state law to provide benefits to eligible firefighters. Although this pension plan has subsequently been replaced by the State Law Enforcement Officers and Firefighters pension system, firefighters hired prior to March 1, 1970 continue to be eligible for benefits under its provisions. Revenues received by the fund include proceeds of a state-imposed tax on fire insurance premiums and as needed, allocations from the City’s annual property tax levy based on actuarial estimates. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted as they are needed. D. BUDGET AND BUDGETARY ACCOUNTING Packet Page 146 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS Scope of Budget - Budgets are adopted at the fund level and this constitutes the legal level of control where expenditures may not exceed appropriations. Purely as a management tool, budgets are broken out to departments, activities and expense types. Transfers or revisions within funds are allowed, but only the City Council can increase or decrease a fund's budget, which is done by City ordinance. The City adopts the budget for governmental funds on the modified accrual basis and all unexpended appropriations lapse at year-end. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but financial statements include budget-to-actual comparisons for general funds only. Proprietary fund budgets are "management budgets" and are not legally required to be reported. Procedures for Adopting the Original Budget - The budget process steps are: 1) prior to November 1st, the Mayor submits a proposed annual budget to the City Council. It is based on Council-established priorities and estimates provided by City departments during the preceding months, and balanced with revenue estimates made by the Mayor; 2) the City Council conducts public hearings on the proposed budget in November and December; 3) the Council makes its adjustments to the proposed budget and adopts by ordinance a final balanced annual budget no later than December 31; 4) the final annual budget as adopted is published and distributed by the end of the year. Limited copies of the budget book can be obtained from City of Edmonds, c/o City of Edmonds Finance Department, 121 5th Ave. N. Edmonds, WA 98020, or by visiting our web site at www.edmondswa.gov. E. ASSETS, LIABILITIES, AND FUND EQUITY Cash and Equity in Pooled Investments - The City of Edmonds invests all short-term cash surpluses. The City considers all highly-liquid assets, including investment in the Washington State’s Local Government Investment Pool, and short-term investments with a maturity of three months or less when purchased to be cash equivalents. Investments - Investments are presented in the financial statements at fair value based on quoted market prices. The City’s position in the Local Government Investment Pool is the same as the value of the pool shares. Pool investments are reported as Cash and Cash Equivalents. Interest earned on the pooled investments is allocated to individual funds at the end of each month on the basis of their average daily cash balance during the preceding month. Investments are also held separately by several funds with interest earned directly for each fund’s benefit. The City holds most investments to maturity. For reporting, all funds’ interest earnings are recognized in the accounting period in which they become available and measurable. Additional deposit and investment information is presented in Note 3. Inventories - Inventories are generally valued using the weighted-average cost method and consist of expendable materials and supplies. Governmental fund types use the consumption method, where cost is recognized as an expenditure when the inventory is consumed. Inventories in the proprietary funds use two separate methods. The combined utility fund inventories are expensed as consumed. The internal service fund inventories are expensed when purchased with the inventories adjusted at year-end. Receivables - Property taxes - The County Treasurer collects annual property taxes levied in the county for all taxing authorities. Taxes are levied on January 1 for property value listed as of May 31. Packet Page 147 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS The County Assessor establishes assessed values at 100 percent of fair market value. Beginning with the 2004 assessment for taxes payable in 2005, all property is appraised annually and updated to reflect the current market value. This will result in smaller increases in assessed value than property owners experienced in the past with the 4- year revaluation cycle. It also allows property values to be adjusted downward if there is a change in the market, instead of the value being "fixed" for a 4-year period. Due to voter approval of Initiative 747 in November 2001, levy increases are limited to the lesser of the implicit price deflator for personal consumption expenditures for the 12- month period ending in July of each year, or 1%. Any increase above this limit requires voter approval. Property taxes levied by the County Assessor and collected by the County Treasurer become a lien on the first day of the levy year and may be paid in two equal payments if the total exceeds $10. The first half is due on April 30 and the balance is due October 31. Delinquent taxes bear interest at 12 percent and are subject to additional penalties if not paid as scheduled. Washington State Constitution and Washington State law, RCW 84.55.010, limit the rate. Property tax is recorded as a receivable and revenue when levied. Property tax collected in advance of the fiscal year to which it applies is recorded as deferred revenue and recognized as revenue of the period to which it applies. No allowance for uncollectible tax is established because delinquent taxes are considered fully collectible. Prior year tax levies were recorded using the same principal, and delinquent taxes are evaluated annually. In 2011, the City levied the following property taxes on an assessed value of $6,433,258,853. The special levies identified in the table were approved by the voters and are not subject to the limitation listed above. Purpose of the Levy Levy Rate per $1,000 Total Levy Amount General Government $1.4766 9,499,558$ Emergency medical service (EMS) 0.5000 3,216,629 Debt Service on voter approved general obligation bonds 0.1457 877,984 Total City Levy $2.1223 13,594,171$ Customer Accounts - Customer accounts receivable consist of amounts owed by private individuals and organizations for goods delivered or services rendered in the regular course of business operations. Notes and contracts receivable arise from a written agreement or contract with private individuals or organizations. Receivables are shown net of allowances for uncollectible accounts. Interfund - Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either interfund loans receivable/payable or advances to/from other funds. All other outstanding balances between funds are reported as due to/due from other funds. Advances to other funds in governmental funds are equally offset by a fund balance reserve account, which indicates that they do not constitute available spendable resources since they are not a component of net current assets. Deferred Revenues and Deferred Charges - Deferred revenues include amounts collected before revenue recognition criteria are met because under the modified accrual basis of accounting, they are measurable but not yet available. The deferred items Packet Page 148 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS consist primarily of delinquent property taxes, contracts and agreements, special assessments, and amounts due from component unit. In the proprietary funds the premium or discount and issuance costs of long-term debt are amortized over the life of the debt. For current refunding and advance refunding of revenue bonds, the difference between the reacquisition price and net carrying amount is amortized over the shorter of the remaining life of the old debt or the life of the new bond issues. Restricted Assets - In accordance with the utility bond resolutions, state law, or other agreements, separate restricted assets have been established. These assets are restricted for specific purposes including the establishment of bond reserve funds, financing the ongoing capital improvement programs of the various utilities, and other purposes. At December 31, 2011 the City had $984,163 cash in the enterprise fund restricted for debt service. Capital Assets - General capital assets are those assets not specifically related to activities reported in the proprietary funds. The capital assets purchased or constructed by a governmental fund are recorded as expenditures in the fund at the time the related purchases are made; however, the associated capital assets are reported in the governmental activities column of the government-wide statement of net assets while not reported in the fund balance sheets. The City classifies assets with an estimated useful life in excess of one year as capital assets. Capital assets include land, buildings, improvements, machinery, equipment, and infrastructure. Land is capitalized at cost with no minimum threshold. Buildings, improvements, and machinery and equipment are capitalized when cost meets or exceeds $5,000. Public domain (infrastructure) assets consist of certain improvements other than buildings, including utility systems, streets, traffic controls, and overlays are capitalized when cost equals or exceeds $50,000. Costs of normal maintenance and repair for general assets are not capitalized. However, any improvement that increases an asset’s value, capacity or materially extends its life is added to that asset’s capitalized costs. Equipment items acquired through capital lease agreements and land purchased through conditional sales contracts are reported as general capital assets in the government-wide statement of net assets. In the governmental fund financial statements, lease and contract payments are reported as expenditures. All project costs are included in construction in progress in the government-wide statement of net assets. At completion, capital costs are reclassified to property plant and equipment. In the governmental fund financial statements, projects are reported as expenditures. Capital assets acquired or constructed by the proprietary funds are capitalized in those funds at historical cost. Contributed assets are recorded at their estimated fair values as of the date acquired. The estimated value of donated assets is recorded as contributed capital by the fund which receives them. Land and construction in progress are not depreciated. Buildings, equipment, non- building improvements and intangible assets are depreciated using the straight line method, using varying estimated service lives for individual assets and asset classifications depending on particular characteristics of an asset and factors surrounding its anticipated use. Depreciation is reported as part of the related program expense column on government-wide statement of activities and as a fund expense in the Packet Page 149 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS proprietary funds, while not reported in the fund statements of governmental funds. Capital assets are reported net of accumulated depreciation on the government-wide statement of net assets and in the proprietary funds statement of net assets, while not reported in the governmental fund balance sheets. Refer to note 8 for additional information regarding capital assets. The average service lives used to calculate depreciation for specific categories of assets are summarized below: Asset Type Buildings Improvements other than Buildings Infrastructure Machinery and Equipment Intangible Assets Est. Service Life (Yrs) 30-50 25-60 20-100 2-20 20-30 Accumulated Compensated Absences - Compensated absences including payroll taxes are reported as a current liability in the balance sheet. Actual balances are accrued for all types of compensated absences except sick leave, the liability for which is generally estimated using the termination method provided by GASB Statement No. 16. Vacation Pay – Employees earn vacation based upon their years of service and may accumulate earned vacation up to a maximum of two years accrual. Unused vacation at retirement or termination is considered vested and payable to the employee. Sick Pay – Employees may accumulate up to 1000 hours of sick leave. Up to 800 hours of unused sick leave at retirement or termination is paid based on a percentage of accumulated sick leave. Payment is based on current wage at termination. Other Compensated Absences – Other compensated absences include compensatory time in lieu of overtime pay; holiday earned by fire and police employees; and other compensation earned by City employees under law or union contracts. Unused compensated absences are payable at retirement or termination. F. FUND BALANCES The difference between fund assets and liabilities is “net assets” on the government- wide, proprietary, and fiduciary fund statements, and is “fund balance” on the governmental fund statements. The fund balance amounts for governmental funds have been reclassified in accordance with GASB Statement No. 54. As a result, amounts previously reported as reserved and unreserved are now reported as nonspendable, restricted, committed, assigned, or unassigned.  Nonspendable fund balance includes items that cannot be spent. This includes activity that is not in a spendable form (inventories, prepaid amounts, long-term portion of loans/notes receivable, or property held for resale unless the proceeds are restricted, committed or assigned) and activity that is legally or contractually required to remain intact, such as a principal balance in a permanent fund.  Restricted fund balances have constraints placed upon the use of the resources either by an external party or imposed by law through a constitutional provision or enabling legislation. Packet Page 150 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS  Committed fund balance can be used only for specific purposes pursuant to constraints imposed by a formal action of the City Council, the City’s highest level of decision-making authority. This formal action is the passage of an ordinance by City Council creating, modifying, or rescinding an appropriation.  Assigned fund balance includes amounts that are constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. For governmental funds, other than the general fund, this is the residual amount within the fund that is not restricted or committed.  Unassigned fund balance is the residual amount of the general fund not included in the four categories described above. Also, any deficit fund balances within the other governmental fund types are reported as unassigned. Each fund has been analyzed to classify the fund balance in accordance with GASB Statement No. 54. Funds are created by the City Council and money is authorized to be transferred to the fund for a particular purpose. At this point, balances in these funds are at least committed, and may be further restricted depending on whether there is an external party, constitutional provision, or enabling legislation constraint involved. The appropriated balance in the general fund is committed, and the remaining balance is unassigned. All other governmental funds are presented as restricted or committed. Appropriations specify the funding source, and therefore the order in which restricted, committed, assigned, or unassigned fund balance gets spent. G. REVENUES, EXPENDITURES AND EXPENSES Under the modified accrual basis of accounting: Charges for services, interest on investments, and rents generally are considered measurable and available when earned in governmental funds. Taxes and federal or state entitlements or shared revenues that have been collected but not remitted by an intermediary collection agency to the City are considered measurable and available. Special assessments are considered measurable and available when they become due. Grants are considered measurable and available to the extent that expenditures have been made. Other intergovernmental revenues are considered measurable and available when earned. Interfund revenues for goods and services are considered measurable and available when earned. Proceeds from sale or loss of capital assets are recognized as other financing sources. Revenues from taxpayer-assessed taxes (i.e., sales tax), net of estimated refunds, are recognized when measurable and available to finance expenditures of the current period. All other revenues are either not measurable or considered not available until collected. Expenditures are generally recognized when incurred, except for principal and interest on general long-term debt, which are reported as expenditures when paid, and compensated Packet Page 151 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS absences, which are reported as expenditures when liquidated from expendable available financial resources. Under the accrual basis of accounting: Revenues are recognized when earned and expenses are recognized when incurred. Contributions of capital in proprietary fund financial statements arise from internal and external contributions of capital assets or from grants or outside contributions of resources restricted to capital acquisition and construction. Transfers between government and business-type activities on the government-wide statement of activities are reported as general revenues. Transfers between funds reported in the governmental activities column are eliminated, as are transfers between funds reported in the business-type activities column. H. ESTIMATES The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. I. CHANGES IN ACCOUNTING STANDARDS The accompanying financial statements of the City of Edmonds have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard- setting body for governmental accounting and financial reporting principles, which are primarily set forth in GASB’s Codification of Governmental Accounting and Financial Reporting Standards. The Governmental Accounting Standards Board (GASB) has issued Statement No. 51 Accounting and Financial Reporting for Intangible Assets, and Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions. These new accounting and reporting standards impacted the City’s expenditure recognition, and assets and fund balance reporting. The new standards also required reformatting of the financial statements and restating beginning balances. Certain special revenue funds did not meet the new definition for classification of such funds, and as such were combined with the general fund for financial reporting purposes. These new GASB standards were implemented in 2011. NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY At December 31, 2011 the following funds exceeded appropriated budgets which are a violation of state statute: Fund 009 – LEOFF-Medical Insurance Reserve Fund exceeded the annual budget by $3,267 due to higher than anticipated year-end medical reimbursements. Fund 121 – Employee Parking Permit Fund exceeded the annual budget by $12.88. The fund collects parking permit revenue to offset the cost of the supplies. Packet Page 152 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS Fund 126 – REET 1 exceeded the annual budget by $1,650 due to unbudgeted fiscal agent fees. Fund 127 – Gifts Catalog Fund exceeded the annual budget by $3,444. The Parks and Recreation Department received an additional $6,000 at the end of the year in donations for three benches as part of the Old Milltown project. Fund 631 – Transportation Benefit District exceeded the annual budget by $39,180, this amount was supported by the receipt of $39,180 in additional fund revenue. In all instances above there was sufficient revenue or fund balance to cover the deficit. All funds amended expenditure budgets totaled $73,052,068, which includes $3,886,078 of supplemental appropriations. Funds with supplemental appropriations during 2011 and the amounts are shown below: 2011 2011 2011 Fund Fund Original Supplemental Amended Number Description Budget Appropriations Budget 001 General Fund 32,320,897$ 949,765$ 33,270,662$ 111 Street Fund 1,426,942 92,732 1,519,674 112 Combined Street Const/Improve 1,369,795 312,000 1,681,795 113 Multimodal Transportation Fd.1,025,000 (25,000) 1,000,000 116 Building Maintenance 95,000 135,994 230,994 120 Hotel/Motel Tax Revenue Fund 105,750 47,500 153,250 125 Park Acq/Improvement 623,000 332,000 955,000 126 Special Capital Fund 699,582 40,750 740,332 127 Gifts Catalog Fund 6,300 5,000 11,300 130 Cemetery Maintenance/Improv 148,179 4,100 152,279 132 Parks Construction 1,735,500 339,000 2,074,500 411 Combined Utility Operation 15,139,354 782,833 15,922,187 412 Combined Utility Const/Improve 10,300,000 1,072,992 11,372,992 414 Capital Improvements Reserve 836,035 (309,000) 527,035 511 Equipment Rental Fund 1,184,702 105,412 1,290,114 Totals 69,165,990$ 3,886,078$ 73,052,068$ NOTE 3 – DEPOSITS AND INVESTMENTS Interest rate risk. Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy manages the exposure to declines in fair values by limiting the weighted average of maturity of its investments to less than four years, unless an investment is matched to an anticipated future cash flow. Credit risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law and the City’s investment policy limits the instruments in which the City may invest. These include: 1. United States bonds. 2. United States certificates of indebtedness. 3. Bonds or warrants of the State of Washington. Packet Page 153 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS 4. General obligation or utility revenue bonds or warrants of its own or of any other city or town in the State. 5. Its own bonds or warrants of a local improvement district which are within the protection of the local improvement guaranty fund. 6. Savings or time accounts in designated public depositories. 7. Certificates, notes or bonds of United States agencies, or corporations wholly owned by the United States. 8. Repurchase agreements. 9. Banker’s acceptances. 10. Federal Home Loan Bank notes and bonds, Federal Land Bank bonds, Federal National Mortgage Association notes, debentures and guaranteed certificates of participation, or obligations of any other government sponsored corporation whose obligations are or may be eligible as collateral for advances to member banks as determined by the Board of Governors of the Federal Reserve System or any portion thereof in investment deposits as defined in RCW 39.8.010 secured by collateral in accordance with RCW 39.58. 11. Interim financing warrants of local improvement districts. 12. State Local Government Investment Pool. The City held no debt securities as of December 31, 2011. The Washington State Local Government Investment Pool (LGIP), created by the Washington State Legislature in 1986, is managed and operated solely by the Office of the State Treasurer. The State Finance Committee administers the statute that created the pool and adopts appropriate rules. The State Treasurer established the LGIP Advisory Committee to provide advice on the pool’s operation. The advisory committee includes 12 members selected from the active pool participants. Eight members are appointed by the participant associations, and four are appointed by the State Treasurer. The LGIP is considered extremely low risk and is recorded as a cash equivalent.. The pool is unrated by financial rating agencies. It is operated in a manner consistent with the Securities and Exchange Commission’s Rule 2a-7 of the Investment Company Act of 1940. Rule 2a-7 funds are limited to high quality obligations with limited maximum and average maturities, the effect of which is to minimize both market and credit risk. The City’s position in the pool is the same as the value of the shares. Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. All City deposits are insured by Federal Depository Insurance (FDIC) up to $250,000. All deposits not covered by FDIC insurance are covered by the Washington Public Deposit Protection Commission (WPDPC) of the State of Washington. The WPDPC is a statutory authority established under RCW chapter 39.58. It constitutes a multiple financial institution collateral arrangement that provides for additional assessments against members of the pool on a pro rata basis up to a maximum of 10 percent of each institution’s public deposits. Provisions of RCW chapter 39.58, section 60 authorize the WPDPC to make pro-rata assessments in proportion to the maximum liability of each such depository as it existed on the date of loss. Custodial Credit Risk – Investments. For investments, this is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All City securities are held for safekeeping by the Bank of New York, as the City’s agent, in the City’s name. Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The City diversifies its investments by security type and institution. The investment policy states: “No more than fifty percent (50%) of the City’s Packet Page 154 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS portfolio, at the time of purchase, shall be in any single financial institution” with the exception of US Treasury securities and the State Investment Pool. A reconciliation of cash, cash equivalents (including pooled investments) and investments as shown in the government-wide and fund financial statements is as follows: Deposits 14,227,827$ Local Government Investment Pool 21,307,439 35,535,265$ Governmental Business-type Total Fiduciary Activities Activities Primary Govt. Funds Total Cash and Cash Equivalents 16,243,965$ 18,089,235$ 34,333,200$ 217,903$ 34,551,102$ Restricted Cash and Cash Equivalents - 984,163 984,163 - 984,163 16,243,965$ 19,073,398$ 35,317,363$ 217,903$ 35,535,265$ NOTE 4 – PROPERTY TAXES The county treasurer acts as an agent to collect property tax levied in the county for all taxing authorities. January 1 Tax is levied and become an enforceable lien against properties. February 14 Tax bills are mailed. April 30 First of two equal instalment payments is due. May 31 Assessed value of property established for next year's levy at 100 percent of market value. October 31 Second installment is due. Property Tax Calendar Property tax is recorded as a receivable and revenue when levied. Property tax collected in advance of the fiscal year to which it applies is recorded as deferred revenue and recognized as revenue of the period to which it applies. No allowance for uncollectible tax is established because delinquent taxes are considered fully collectible. Prior year tax levies were recorded using the same principal, and delinquent taxes are evaluated annually. The City may levy up to $3.10 Per $1,000 of assess valuation for general governmental services. Washington State Constitution and Washington State law, RCW 84.55.010, limit the rate. The City’s regular levy for 2011 was $2.1223 per $1,000 on an assessed valuation of $6,433,258,853 for a total regular levy of $13,594,171. The special levies identified in the table were approved by the voters and are not subject to the limitations listed above. Packet Page 155 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS Purpose of the Levy Levy Rate per $1,000 Total Levy Amount General Government $1.4766 9,499,558$ Emergency medical service (EMS) 0.5000 3,216,629 Debt Service on voter approved general obligation bonds 0.1457 877,984 Total City Levy $2.1223 13,594,171$ NOTE 5 – RECEIVABLES AND PAYABLES Receivables at December 31, 2011, are as follows: Customer Special Due From Other Accounts Taxes Assessments Governments Total Governmental Activities General Fund 701,728$ 483,678$ -$ 6,568,389$ 7,753,795$ Other Governmental Funds 86 - 31,440 1,454,571 1,486,097 Internal Service 1,192 - - 854 2,045 Total Governmental Activities 703,005$ 483,678$ 31,440$ 8,023,814$ 9,241,937$ Business-type Activities Combined Utility Fund 2,048,328$ -$ -$ 950,480$ 2,998,809$ Total Business-type Activities 2,048,328$ -$ -$ 950,480$ 2,998,809$ Payables at December 31, 2011, are as follows: Salaries and Benefits Accounts Payable Due to Other Governments Other Current Liabilities Total Governmental Activities General Fund 720,503$ 327,091$ -$ 93,553$ 1,141,147$ Other Governmental Funds 24,591 489,679 - 79,934 594,204 Internal Service 13,546 40,933 - - 54,478 Total Governmental Activities 758,640$ 857,703$ -$ 173,487$ 1,789,829$ Business-type Activities Combined Utility Fund 166,417$ 1,631,051$ 87,983$ 261,473$ 2,146,924$ Total Business-type Activities 166,417$ 1,631,051$ 87,983$ 261,473$ 2,146,924$ Lease Receivables - The City receives revenue by leasing land to T-Mobile West Corporation for a cell tower placed on the Five Corners Water Tank Site. The original lease was signed in 1997 for a term of five years and could be renewed for five additional five-year terms. A new agreement was signed in May 2004 with T-Mobile West Corporation amending the original lease agreement. The new lease has a term of 20 years. The annual rental fee may be reviewed upon either party’s prior written request sixty days prior to the renewal date only on every 5th anniversary of the commencement date. Along with the actual tower lease, there are two sub- leases to co-locate on the tower leased to T-Mobile. The first lease with AT&T Wireless Services was signed in 1997 for a five-year term and could be renewed for three additional five-year periods for a total of 20 years. Clearwire, LLC signed a five-year lease in May of 2006 subject to renewal for three additional five year periods for a total of 20 years. Packet Page 156 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS The Edmonds City Council entered into a settlement agreement purchasing property located at 20719 86th Place West in April of 2011. The City entered into a property management agreement with Windermere Real Estate / North Inc in June of 2011 for one year appointing Windemere to rent, lease operate and manage the property. The property located at 20719 86th PL W has an original cost of $302,471 and a book value of $296,348. Depreciation expense for 2011 was $6,123. The City entered into a telecommunications contract in March of 2007 with the Netriver Corporation. The three year contract allows Netriver Corporation to use the City’s fiber optic network. At the end of the three year contract, the agreement shall continue on a month to month basis until the contract is terminated in writing or a new contract is executed. The City receives revenue from operating leases as a result of renting space in various City buildings. At the Anderson Center, the City has six recreation contracts that allow various organizations to rent out a total of 19 spaces. The recreation leases are renewed annually. The Anderson Center has an original cost of $3,056,857 and a book value of $1,495,196. Depreciation expense for 2011 was $97,156. The City rents space at the old Public Works building. The City entered into a month-to-month contract with the Edmonds Arts Festival Foundation on November 13, 2009. The Foundation rents three garage bays as part of the City’s Cultural Arts Plan. The City also entered into a ten year lease agreement with the Driftwood Players in December of 2009 to rent administrative office space along with the old crew area space. The old Public Works building has an original cost of $249,396 and a book value of $48,327. Depreciation expense for 2011 was $3,451. The Edmonds Chamber of Commerce rents space on the first floor of city hall. The contract automatically renews annually unless terminated by the parties. City Hall’s original cost is $3,910,469 and carries a book value of $1,789,689. Depreciation expense for 2011 was $131,756. The City has two leases which provide recreational services to the citizens. A four year lease agreement was entered into on December 29, 2006 with the Boys and Girls Clubs of Snohomish County. The agreement may be renewed for consecutive five-year terms upon mutual agreement of the parties. The original cost of the Boys and Girls Clubs of Snohomish County is $85,570 and is fully depreciated. A lease agreement was entered into with the South County Senior Center, Inc on December 1, 2009. The term of the lease is for eleven years and is automatically renewable for two additional five-year terms for a total of twenty-one years. The Senior Center original cost is $1,060,523 and carries a book value of $114,573. Depreciation expense for 2011 was $29,525. In July of 2009 a one year lease was signed with Shorts ‘n Slippas, LLC for the organization to run a concession stand on the public right of way. They vacated the concession stand on December 31, 2011. In 2011, the General Fund received $156,020 and the Enterprise Fund received $51,025 in rental income. NOTE 6 – INTERFUND ACTIVITY There were two interfund balances as of December 31, 2011. The first was a transfer of the utility tax revenues from the Utility Fund to the General Fund for services rendered in the amount of $147,790. The second interfund balance was a transfer from the Transportation Benefit District (TBD) to the Street Fund for TBD revenues in the amount of $49,936. Packet Page 157 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS Interfund transfers are the flow of assets without a reciprocal return of assets, goods or services. The City uses transfers to 1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and 2) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. There were no significant transfers in 2011. The difference between the following table and the Revenues, Expenditures, and Changes in Fund Balance is due to the transfer between the General Fund and the Firemen’s Pension Fund, which is not included in the table below. Interfund activity for the year is as follows: Transfers In General Other Governmental Enterprise Total General Fund 458,252$ 433,166$ 25,086$ -$ 458,252$ Other Governmental 1,710,920 79,904 1,148,700 482,316 1,710,920 Internal Service 50,942 50,942 - - 50,942 Total 2,220,114$ 564,012$ 1,173,786$ 482,316$ 2,220,114$ Transfers Out NOTE 7 – RESTRICTED COMPONENT OF NET POSITION The government-wide statement of net position reports $3,288,857 for Governmental Activities and $9,096,615 for Business-Type Activities of restricted component of net position. Governmental Activities Restricted for: Debt service restrictions 242,765$ Per RCW, proceeds from seizures are limited to law enforcement activities exclusively 124,661 Restricted per RCW related to state fuel taxes, transportation benefit fees, impact fees and grant agreements 815,498 Restricted per RCW related to REET revenue and lodging tax restrictions, private donors, and grant agreements 1,995,476 Per RCW, proceeds are limited to paying "all or part of the cost of tourism promotion"93,895 Restricted by grant agreements and private donations limited to a specific purpose 16,562 Total Restricted Component of Net Position 3,288,857$ Business-Type Activities Restricted for: Customer deposits 4,698$ Debt service restrictions 984,163 Unspent capital project debt proceeds 8,107,754 Total Restricted Component of Net Position 9,096,615$ NOTE 8 – CAPITAL ASSETS AND DEPRECIATION Capital asset activity for the year ended December 31, 2011 is as follows: Packet Page 158 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS Balance 1/1/2011 Increases Decreases Balance 12/31/2011 Governmental Activities Capital assets, not being depreciated: Land 14,530,663$ -$ -$ 14,530,663$ Construction in Progress 7,100,980 2,450,780 (861,056) 8,690,704 Total capital assets, not being depreciated: 21,631,643 2,450,780 (861,056) 23,221,367 Capital assets, being depreciated: Building 25,479,908 - - 25,479,908 Improvements other than buildings 13,531,609 - - 13,531,609 Infrastructure 54,326,213 1,406,561 - 55,732,774 Machinery and Equipment 7,164,938 434,778 (57,229) 7,542,487 Total capital assets being depreciated: 100,502,668 1,841,339 (57,229) 102,286,778 Less accumulated depreciation for: Buildings (11,838,020) (856,958) - (12,694,978) Improvements other than buildings (5,894,402) (445,999) - (6,340,401) Infrastructure (26,265,315) (2,372,108) - (28,637,423) Machinery and Equipment (4,779,457) (397,555) 57,229 (5,119,783) Total accumulated depreciation:(48,777,194) (4,072,620) 57,229 (52,792,585) Total capital assets, being depreciated, net: 51,725,473 (2,231,281) - 49,494,192 Governmental activities capital assets, net: 73,357,117$ 219,499$ (861,056)$ 72,715,560$ Business-type Activities Capital assets, not being depreciated: Beginning Increases Decreases Ending Land 1,128,419$ 138,947$ (10,260)$ 1,257,106$ Construction in Progress 9,724,406 4,830,218 (6,995,869) 7,558,755 Total capital assets, not being depreciated: 10,852,826 4,969,165 (7,006,129) 8,815,861 Capital assets, being depreciated: B uilding 36,724,796 163,525 - 36,888,321 Improvements other than buildings 47,967,987 7,590,018 - 55,558,005 Machinery and Equipment 877,559 30,635 - 908,194 Intangible Assets 1,250,000 10,260 - 1,260,260 Total capital assets being depreciated: 86,820,342 7,794,438 - 94,614,780 Less accumulated depreciation for: Buildings (13,894,882) (707,567) - (14,602,449) Improvements other than buildings (19,853,204) (1,645,297) - (21,498,501) Machinery and Equipment (606,971) (34,786) - (641,757) Intangible Assets (853,915) (59,569) - (913,484) Total accumulated depreciation:(35,208,973) (2,447,219) - (37,656,192) Total capital assets, being depreciated, net: 51,611,369 5,347,219 - 56,958,588 Business activities capital assets, net:62,464,195$ 10,316,384$ (7,006,129)$ 65,774,450$ Schedule of Capital Asset Activity Packet Page 159 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS Depreciation/amortization expense was charged to functions/programs of the City as follows: Depreciation Expense by Function Governmental Activities: General government 707,580$ Public safety 301,966 Culture and recreation 414,798 Transportation 2,307,031 Physical Environment 6,727 Internal service 334,518 Total depreciation expense - Governmental Activities 4,072,620$ Business-Type Activities: Stormwater 383,376$ Water 487,135 Sewer 299,558 Wastewater Treatment 1,277,150 Total depreciation expense - Business Type Activities 2,447,219$ NOTE 9 – RECORDED VACATION AND SICK LEAVE In accordance with GASB Statement No. 16, the City accrues vacation and sick leave pay. The accrual is shown on the government-wide statement of net assets for both governmental and proprietary funds. The accrual is also seen in the separate proprietary fund balance sheets, but is excluded from the separate governmental fund balance sheets since it is not currently due and payable at year-end (please refer to note 11). NOTE 10 – PENSION PLANS Substantially all City full-time and qualifying part-time employees participate in one of the following statewide retirement systems administered by the Washington State Department of Retirement Systems, under cost-sharing multiple-employer public employee defined benefit retirement plans. The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington, issues a publicly available comprehensive annual financial report (CAFR) that includes financial statements and required supplementary information for each plan. The DRS CAFR may be obtained by writing to: Department of Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA 98504-8380; or it may be downloaded from the DRS website at www.drs.wa.gov. The following disclosures are made pursuant to GASB Statements No. 27, Accounting for Pensions by State and Local Government Employers and No. 50, Pension Disclosures, an Amendment of GASB Statements No. 25 and No. 27. Public Employees’ Retirement System (PERS) Plans 1, 2, and 3 The Legislature established PERS in 1947. Membership in the system includes: elected officials; state employees; employees of the Supreme, Appeals, and Superior courts (other than judges currently in the Judicial Retirement System); employees of legislative committees; community and technical colleges, college and university employees not participating in higher education retirement programs; judges of district and municipal courts; and employees of local governments. PERS retirement benefit provisions are established in Chapters 41.34 and 41.40 RCW and may be amended only by the State Legislature. Packet Page 160 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS PERS is a cost-sharing multiple-employer retirement system comprised of three separate plans for membership purposes: Plans 1 and 2 are defined benefit plans and Plan 2 is a defined benefit plan with a defined contribution component. PERS members who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after October 1, 1977 and by either, February 28, 2002 for state and higher education employees, or August 31, 2002 for local government employees, are Plan 2 members unless they exercised an option to transfer their membership to Plan 3. PERS members joining the system on or after March 1, 2002 for state and higher education employees, or September 1, 2002 for local government employees have the irrevocable option of choosing membership in either PERS Plan 2 or PERS Plan 3. The option must be exercised within the 90 days of employment. An employee is reported in Plan 2 until a choice is made. Employees who fail to choose within 90 days default to PERS Plan 3. Notwithstanding, PERS Plan 2 and Plan 3 members may opt out of plan membership if terminally ill, with less than five years to live. PERS Plan 1 and Plan 2 defined benefit retirement benefits are financed from a combination of investment earnings and employer and employee contributions. PERS Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members are eligible for retirement after 30 years of service, or at the age of 60 with five years of service, or at the age of 55 with 25 years of service. The monthly benefit is two percent of the average final compensation (AFC) per year of service. (AFC is the monthly average of the 24 consecutive highest-paid service credit months.) The retirement benefit may not exceed 60 percent of AFC. The monthly benefit is subject to a minimum for PERS Plan 1 retirees who have 25 years of service and have been retired 20 years, or who have 20 years of service and have been retired 25 years. Plan 1 members retiring from inactive status prior to the age of 65 may receive actuarially reduced benefits. If a survivor option is chosen, the benefit is further reduced. A cost-of-living allowance (COLA) was granted at age 66 based upon years of service times the COLA amount. This benefit was eliminated by the Legislature, effective July 1, 2011. Plan 1 members may elect to receive an optional COLA that provides an automatic annual adjustment based on the Consumer Price Index. The adjustment is capped at three percent annually. To offset the cost of this annual adjustment, the benefit is reduced. PERS Plan 1 provides duty and non-duty disability benefits. Duty disability retirement 1 benefits for disablement prior to the age of 60 consist of a temporary life annuity payable to the age of 60. The allowance amount is $350 a month, or two-thirds of the monthly AFC, whichever is less. The benefit is reduced by any workers’ compensation benefit and is payable as long as the member remains disabled or until the member attains the age of 60. A member with five years of covered employment is eligible for non-duty disability retirement. Prior to the age of 55, the allowance amount is two percent of the AFC for each year of service reduced by two percent for each year that the member’s age is less than 55. The total benefit is limited to 60 percent of the AFC and is actuarially reduced to reflect the choice of a survivor option. A cost-of-living allowance was granted at age 66 based upon years of service times the COLA amount. This benefit was eliminated by the Legislature, effective July 1, 2011. Plan 1 members may elect to receive an optional COLA that provides an automatic annual adjustment based on the Consumer Price Index. The adjustment is capped at 3 percent annually. To offset the cost of this annual adjustment, the benefit is reduced. PERS Plan 1 members can receive credit for military service. Members can also purchase up to 24 months of service credit lost because of an on-the-job injury. PERS Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members are eligible for normal retirement at the age of 65 with five years of service. The monthly benefit is two percent of the AFC per year of service. (AFC is the monthly average of the 60 consecutive highest-paid service months.) PERS Plan 2 members who have at least 20 years of service credit and are 55 years of age or older are eligible for early retirement with a reduced benefit. The benefit is reduced by an early retirement factor (ERF) that varies according to age, for each year before Packet Page 161 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS age 65. PERS Plan 2 members who have 30 or more years of service credit and are at least 55 years old can retire under one of two provisions: With a benefit that is reduced by 3 percent for each year before age 65. With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return-to-work rules. PERS Plan 2 retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor option. There is no cap on years of service credit; and a cost-of-living allowance is granted (based on the Consumer Price Index), capped at three percent annually. The surviving spouse or eligible child or children of a PERS Plan 2 member who dies after leaving eligible employment having earned ten years of service credit may request a refund of the member’s accumulated contributions. PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component and member contributions finance a defined contribution component. The defined benefit portion provides a monthly benefit that is one percent of the AFC per year of service. (AFC is the monthly average of the 60 consecutive highest-paid service months.) Effective June 7, 2006, PERS Plan 3 members are vested in the defined benefit portion of their plan after ten years of service; or after five years of service, if twelve months of that service are earned after age 44; or after five service credit years earned in PERS Plan 2 prior to June 1, 2003. Plan 3 members are immediately vested in the defined contribution portion of their plan. Vested Plan 3 members are eligible for normal retirement at age 65, or they may retire early with the following conditions and benefits: If they have at least ten service credit years and are 55 years old, the benefit is reduced by an ERF that varies with age, for each year before age 65. If they have 30 service credit years and are at least 55 years old, they have the choice of a benefit that is reduced by 3 percent for each year before age 65; or a benefit with a smaller (or no) reduction factor (depending on age) that imposes stricter return-to-work rules. PERS Plan 3 defined benefit retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor option. There is no cap on years of service credit and Plan 3 provides the same cost-of- living allowance as Plan 2. PERS Plan 3 defined contribution retirement benefits are solely dependent upon contributions and the results of investment activities. The defined contribution portion can be distributed in accordance with an option selected by the member, either as a lump sum or pursuant to other options authorized by the Director of the Department of Retirement Systems. PERS Plan 2 and Plan 3 provide disability benefits. There is no minimum amount of service credit required for eligibility. The Plan 2 monthly benefit amount is two percent of the AFC per year of service. For Plan 3, the monthly benefit amount is one percent of the AFC per year of service. These disability benefit amounts are actuarially reduced for each year that the member’s age is less than 65, and to reflect the choice of a survivor option. There is no cap on years of service credit, and a cost-of living allowance is granted (based on the Consumer Price Index) capped at 3 percent annually. PERS Plan 2 and Plan 3 members may have up to ten years of interruptive military service credit; five years at no cost and five years that may be purchased by paying the required contributions. Effective July 24, 2005, a member who becomes totally incapacitated for continued employment while serving the uniformed services, or a surviving spouse or eligible children, may apply for interruptive military service credit. Additionally, PERS Plan 2 and Plan 3 members can also purchase up to 24 months of service credit lost because of an on-the-job injury. PERS members may also purchase up to five years of additional service credit once eligible for retirement. This credit can only be purchased at the time of retirement and can be used only to provide the member with a monthly annuity that is paid in addition to the member’s retirement benefit. Beneficiaries of a PERS Plan 2 or Plan 3 member with ten years of service who is killed in the course of employment receive retirement benefits without actuarial reduction, if the member was not at normal retirement age at death. This provision applies to any member killed in the course of employment, on or after June 10, 2004, if found eligible by the Department of Labor and Industries. A one-time duty-related death benefit is provided to the estate (or duly designated nominee) of a PERS member who dies in the line of service as a result of injuries sustained in the course of employment, or if the death resulted from an occupational disease or Packet Page 162 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS infection that arose naturally and proximately out of said member’s covered employment, if found eligible by the Department of Labor and Industries. Judicial Benefit Multiplier During January 1, 2007 through December 31, 2007, judicial members of PERS were given the choice to participate in the Judicial Benefit Multiplier Program (JBM) enacted in 2006. Justices and judges in PERS Plan 1 and Plan 2 were able to make a one-time irrevocable election to pay increased contributions that would fund a retirement benefit with a 3.5 percent multiplier. The benefit would be capped at 75 percent of AFC. Judges in PERS Plan 3 could elect a 1.6 percent of pay per year of service benefit, capped at 37.5 percent of AFC. Members who chose to participate in JBM would: accrue service credit at the higher multiplier beginning with the date of their election; be subject to the benefit cap of 75 percent of AFC, pay higher contributions; stop contributing to the Judicial Retirement Account (JRA); and be given the option to increase the multiplier on past judicial service. Members who did not choose to participate would: continue to accrue service credit at the regular multiplier; continue to participate in JRA, if applicable; never be a participant in the JBM Program; and continue to pay contributions at the regular PERS rate. Newly elected or appointed justices and judges who chose to become PERS members on or after January 1, 2007, or who had not previously opted into PERS membership, were required to participate in the JBM Program. Members required into the JBM program would: return to prior PERS Plan if membership had previously been established; be mandated into Plan 2 and not have a Plan 3 transfer choice, if a new PERS member; accrue the higher multiplier for all judicial service; not contribute to JRA; and not have the option to increase the multiplier for past judicial service. There are 1,197 participating employers in PERS. Membership in PERS consisted of the following as of the latest actuarial valuation date for the plans of June 30, 2010: Retirees and Beneficiaries Receiving Benefits 76,899 Terminated Plan Member Entitled to But Not Yet Receiving Benefits 28,860 Active Plan Members Vested 105,521 Active Plan Member Nonvested 51,005 Total 262,285 Funding Policy Each biennium, the state Pension Funding Council adopts PERS Plan 1 employer contribution rates, PERS Plan 2 employer and employee contribution rates, and PERS Plan 3 employer contribution rates. Employee contribution rates for Plan 1 are established by statute at six percent for state agencies and local government unit employees, and at 7.5 percent for state government elected officials. The employer and employee contribution rates for Plan 2 and the employer contribution rate for Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. All employers are required to contribute at the level established by the Legislature. Under PERS Plan 3, employer contributions finance the defined benefit portion of the plan and member contributions finance the defined contribution portion. The Plan 3 employee contribution rates range from 5 percent to 15 percent, based on member choice. Two of the options are graduated rates dependent on the employee’s age. As a result of the implementation of the Judicial Benefit Multiplier Program in January 2007, a second tier of employer and employee rates was developed to fund, along with investment earnings, the increased retirement benefits of those justices and judges that participate in the program. Packet Page 163 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS The methods used to determine the contribution requirements are established under state statute in accordance with Chapters 41.40 and 41.45 RCW. The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31, 2011, are as follows: Members not participating in JBM: PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer* 7.25%** 7.25%** 7.25%*** Employee 6.00%**** 4.64%**** ***** * The employer rates include the employer administrative expense fee currently set at 0.16%. ** The employer rate for state elected officials is 10.80% for Plan 1 and 7.25% for Plan 2 and Plan 3. *** Plan 3 defined benefit portion only. **** The employee rate for state elected officials is 7.50% for Plan 1 and 4.64% for Plan 2. ***** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member. PERS Plan1 PERS Plan 2 PERS Plan 3 Employer-State Agency* 9.75% 9.75% 9.75%** Employer-Local Government* 7.25% 7.25% 7.25%** Employee-State Agency 9.76% 9.10% 7.5%*** Employee-Local Government 12.26% 11.60% 7.5%*** * The employer rates include the employer administrative expense fee currently set at 0.16%. ** Plan 3 defined benefit portion only. ***Minimum rate. Both city and the employees made the required contributions. The city required contributions for the years ended December 31 were as follows: PERS Plan 1 PERS Plan 2 PERS Plan 3 2011 $16,259 $541,368 $68,507 2010 $22,090 $470,368 $45,011 2009 $38,902 $584,364 $58,637 Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) Plans 1 and 2 Plan Description The Legislature established LEOFF in 1970. Membership in the system includes all full-time, fully compensated, local law enforcement commissioned officers, firefighters and, as of July 24, 2005, emergency medical technicians. LEOFF membership is comprised primarily of non-state employees, with Department of Fish and Wildlife enforcement officers, who were first included prospectively effective July 27, 2003, being an exception. LEOFF retirement benefit provisions are established in Chapter 41.26 RCW and may be amended only by the State Legislature. Packet Page 164 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS LEOFF is a cost-sharing multiple-employer retirement system comprised of two separate defined benefit plans. 24 LEOFF members who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after 25 October 1, 1977 are Plan 2 members. LEOFF defined benefit retirement benefits are financed from a combination of investment earnings, employer and employee contributions, and a special funding situation in which the state pays through state legislative appropriations. Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to provide governance of LEOFF Plan 2. The Board’s duties include adopting contribution rates and recommending policy changes to the Legislature for the LEOFF Plan 2 retirement plan. LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members are eligible for retirement with five years of service at the age of 50. The benefit per year of service calculated as a percent of final average salary (FAS) is as follows: Terms of Service Percent of Final Average Salary 20 or more years 2.0% 10 but less than 20 years 1.5% 5 but less than 10 years 1.0% The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 months’ salary within the last 10 years of service. A cost- of-living allowance is granted (based on the Consumer Price Index). LEOFF Plan 1 provides death and disability benefits. Death benefits for survivors of Plan 1 members on active duty consist of the following: (1) If eligible spouse, 50 percent of the FAS, plus 5 percent of FAS for each eligible surviving child, with a limitation on the combined allowances of 60 percent of the FAS; or (2) If no eligible spouse, eligible children receive 30 percent of FAS for the first child plus 10 percent for each additional child, subject to a 60 percent limitation of FAS, divided equally. A one-time duty-related death benefit is provided to the estate (or duly designated nominee) of a LEOFF Plan 1 member who dies as a result of injuries or illness sustained in the course of employment, if found eligible by the Department of Labor and Industries. The LEOFF Plan 1 disability allowance is 50 percent of the FAS plus 5 percent for each child up to a maximum of 60 percent. Upon recovery from disability before the age of 50, a member is restored to service with full credit for service while disabled. Upon recovery after the age of 50, the benefit continues as the greater of the member’s disability allowance or service retirement allowance. LEOFF Plan 1 members may purchase up to five years of additional service credit once eligible for retirement. This credit can only be purchased at the time of retirement and can be used only to provide the member with a monthly annuity that is paid in addition to the member’s allowance. LEOFF Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members may retire at the age of 50 with 20 years of service, or at the age of 53 with five years of service, with an allowance of two percent of the FAS per year of service. (FAS is based on the highest consecutive 60 months). Plan 2 members who retire prior to the age of 53 receive reduced benefits. Benefits are actuarially reduced for each year that the benefit commences prior to age 53 and to reflect the choice of a survivor option. If the member has at least 20 years of Packet Page 165 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS service and is age 50, the reduction is 3 percent for each year prior to age 53. A cost-of-living allowance is granted (based on the Consumer Price Index), capped at three percent annually. LEOFF Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility. The Plan 2 allowance amount is two percent of the FAS for each year of service. Benefits are actuarially reduced for each year that the member’s age is less than 53, unless the disability is duty-related, and to reflect the choice of a survivor option. If the member has at least 20 years of service and is age 50, the reduction is three percent for each year prior to age 53. A catastrophic disability benefit equal to 70 percent of their FAS, subject to offsets for workers’ compensation and Social Security disability benefits received, is also available to those LEOFF Plan 2 members who are severely disabled in the line of duty and incapable of future substantial gainful employment in any capacity. Effective June 2010, benefits to LEOFF Plan 2 members who are catastrophically disabled include payment of eligible health care insurance premiums. Members of LEOFF Plan 2 who leave service because of a line of duty disability are allowed to withdraw 150 percent of accumulated member contributions. This withdrawal benefit is not subject to federal income tax. Alternatively, members of LEOFF Plan 2 who leave service because of a line of duty disability may be eligible to receive a retirement allowance of at least ten0 percent of FAS and two percent per year of service beyond five years. The first ten percent of the FAS is not subject to federal income tax. LEOFF Plan 2 retirees may return to work in an eligible position covered by another retirement system, choose membership in that system and suspend their pension benefits, or not choose membership and continue receiving pension benefits without interruption. LEOFF Plan 2 members who apply for retirement may purchase up to five years of additional service credit. The cost of this credit is the actuarial equivalent of the resulting increase in the member’s benefit. LEOFF Plan 2 members can receive service credit for military service that interrupts employment. Additionally, LEOFF Plan 2 members who become totally incapacitated for continued employment while servicing in the uniformed services may apply for interruptive military service credit. Should any such member die during this active duty, the member’s surviving spouse or eligible child(ren) may request service credit on behalf of the deceased member. LEOFF Plan 2 members may also purchase up to 24 consecutive months of service credit for each period of temporary duty disability. Beneficiaries of a LEOFF Plan 2 member who is killed in the course of employment receive retirement benefits without actuarial reduction, if found eligible by the Director of the Department of Labor and Industries. Benefits to eligible surviving spouses and dependent children of LEOFF Plan 2 members killed in the course of employment include the payment of on-going health care insurance premiums paid to the Washington state Health Care Authority. A one-time duty-related death benefit is provided to the estate (or duly designated nominee) of a LEOFF Plan 2 member who dies as a result of injuries or illness sustained in the course of employment, if found eligible by the Department of Labor and Industries. There are 374 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial valuation date for the plans of June 30, 2010: Packet Page 166 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS Retirees and Beneficiaries Receiving Benefits 9,647 Terminated Plan Members Entitled to But Not Yet Receiving Benefits 782 Active Plan Members Vested 13,420 Active Plan Members Nonvested 3,656 Total 27,505 Funding Policy Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent as long as the plan remains fully funded. Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the plan. LEOFF Plan 2 employers and employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board. The Legislature, by means of a special funding arrangement, appropriated money from the state General Fund to supplement the current service liability and fund the prior service costs of LEOFF Plan 2 in accordance with the requirements of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. However, this special funding situation is not mandated by the state constitution and this funding requirement could be returned to the employers by a change of statute. The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31, 2011, 12 are as follows: LEOFF Plan 1 LEOFF Plan 2 Employer* 0.16% 5.24%** Employee 0.00% 8.46% State N/A 3.38% *The employer rates include the employer administrative expense fee currently set at 0.16%. **The employer rate for ports and universities is 8.62%. Both the city and the employees made the required contributions. The (city/county/district’s) required contributions for the years ended December 31 were as follows: LEOFF Plan 1 LEOFF Plan 2 2011 $0 $276,034 2010 $0 $274,168 2009 $0 $566,301 Firemen’s Pension Plan Description The Law Enforcement Officers’ and Firefighters’ (LEOFF) pension system was established by the State of Washington on March 1, 1970. The City retained the responsibility for all benefits payable to members (or to their survivors) who retired prior to that date. In addition, the City retained the responsibility for a portion of the benefits payable to members who were active on that date. Packet Page 167 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS As a result, the City of Edmonds is the administrator of the Firemen’s Pension Plan which is shown as a trust fund in the City’s financial reports. Separate financial statements are not issued. This system is a closed, single-employer, defined benefit pension system. All City firefighters who served before March 1, 1970 are participants of this pension fund. Benefits are established in accordance with Revised Code of Washington (RCW) 41.18 and 41.20. At December 31, 2011, there were four retirees receiving pension and medical benefits from this fund. Firefighters hired between March 1, 1970 and September 30, 1977 are members of the LEOFF 1 pension system and are also eligible for a supplemental retirement benefit plus health benefits under the City plan. Generally, benefits under the LEOFF 1 retirement benefit system are greater than or equal to the retirement benefits under the City plan. However, should the benefits under the old law exceed those under LEOFF 1, the City becomes liable for the excess benefits. As such, the laws require the payment of excess benefits only and do not require a specific contribution rate by the City. At December 31, 2011 there were 27 retirees receiving medical benefits. These benefits were paid from the LEOFF 1 Retiree Medical Reserve Fund. Funding Policy and Funding Status Under State law, the Firemen’s Pension Fund is provided an allocation of 25% of all monies received by the State from taxes on fire insurance premiums. The General Fund may provide additional funding through transfers to help fund benefits and administrative costs as necessary. Active pension plan members are not required to contribute to the plan. Summary of Significant Accounting Policies Basis of accounting - The financial statements are prepared using the accrual basis of accounting. Benefits are recognized when due and payable in accordance with the plan. Valuation of investments – For reporting, interest earnings are recognized in the accounting period in which they become available and measurable. Investments are reported on the financial statements at fair value based on quoted market prices. Concentration of Investments At December 31, 2011 the Fire Pension Fund did not hold any investments. The net pension obligation has been recorded as a noncurrent liability on the City’s government-wide statement of net assets. THREE YEAR TREND INFORMATION Fiscal Year Ending 12/31 Annual Pension Cost (APC) Contribution as a Percentage of APC 2009 35,918$ 94% 176,990$ 2010 35,461 88% 181,254 2011 32,582 -19% 220,065 Net Pension Obligation (NPO) The City’s annual pension cost and net pension obligation changes for the current year and two preceding years were as follows: Packet Page 168 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS 12/31/2009 12/31/2010 12/31/2011 Annual Normal Cost (BOY)-$ -$ -$ Amortization of UAAL (BOY)39,330 39,330 37,117 Interest to EOY [(1)+(2)]x(i)*1,573 1,573 1,485 Annual Required Contribution (ARC) at EOY [(1)+(2)+(3)]40,903$ 40,903$ 38,602$ Interest on NPO 6,986 7,080 7,250 Adjustment to ARC 11,971 12,522 13,270 Annual pension cost (APC) [(4)+(5)-(6)]35,918$ 35,461$ 32,582$ Employer Contributions**33,583 31,197 (6,229) Change in NPO [(7)-(8)]2,335 4,264 38,811 NPO at BOY [(11) prior year]174,655$ 176,990$ 181,254$ NPO at EOY [(9)+(10)]176,990$ 181,254$ 220,065$ * 'i' is the assumed interest rate that year: 4.0% in 2009, 4.0% in 2010, 4.0% in 2011. ** Employer contributions for pensions are total contributions to the Fund net of disbursements from the Fund for medical expenses under RCW 41.26.150 and administrative expenses. Actuarial Information On January 1, 2012, Northwest Plan Services,Inc., actuaries and consultants, completed the Firemen’s Pension Fund Actuarial valuation. This valuation was updated on December 31, 2011. In order to comply with reporting requirements, they computed the annual required contribution (ARC) using the Entry Age Cost Normal Actuarial Method. Under this method, the projected benefits are allocated on a level basis as a percentage of salary over the earnings of each individual between entry age and assumed exit age. The amount allocated to each year is called the Normal Cost and the portion of the Actuarial Present Value of all benefits not provided for by future Normal Cost payments is called the Actuarial Liability. Since all members have already retired, the annual Normal Cost is zero. The Unfunded Actuarial Accrued Liability (UAAL) is the Actuarial Accrued Liability minus the actuarial value of the Fund’s assets. The UAAL is amortized as a level dollar amount over a closed 30 years beginning January 1, 2000. Significant actuarial assumptions used in the valuation include:  4.0 percent investment return, compounded annually  3.5 percent annual salary increase  2.5 percent growth in fire insurance premium  2.5 percent increase in consumer price index  7.25 percent increase in medical inflation rate, trending down to 5 percent after 9 years  5.0 percent increase in long term care inflation rate  Plan assets are valued at market value Prior actuarial studies used 9.0 percent growth in the medical inflation rate. There were no material changes to the benefit provisions, actuarial funding method, or other significant factors that affect required contributions. Municipal Employees Benefits Trust (MEBT) Packet Page 169 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS Full- and qualifying part-time City employees participate in the City-defined contribution plan. By majority vote, City employees approved the City's withdrawal from the Social Security System pursuant to 2 U.S.C.A., Sec. 418 (g) effective July 1, 1977. City employees who customarily work 1,000 or more hours per year and who otherwise would be eligible for Social Security coverage and benefits are required to participate. Both the City and participants are required to contribute an amount equal to the current Federal Insurance Contributions Act (FICA) tax rate. The City's contribution for fiscal year 2011 was $980,527 which represents its full liability. For the year ending December 31, 2011, the City's covered payroll was $15,508,807. The City's total current year payroll for all employees is $15,682,450. No significant benefit changes occurred in 2011. The plan is administered by a Plan Committee consisting of two members appointed by the Mayor and five members elected by the employees who contribute to the plan. Members appointed by the Mayor hold office at the pleasure of the Mayor, elected members serve a two- year term and may be re-elected for an additional two-year term. Plan assets are not City property, but are maintained in trust at American Stock Transfer and Trust Company. Plan assets, therefore, are not included in accompanying financial statements. The City may amend the provisions of the plan, provided that no such amendment shall enlarge the duties or liabilities of the plan trustee without its consent. The City has the right at any time to reduce suspend or completely discontinue its contributions to the plan. Actuarial determinations are not required because 1) long-term disability insurance and survivor income insurance are provided by Group Insurance Policy No. 377655 with Standard Insurance Company, and 2) each participant shall, at his/her normal retirement, instruct the Trustee to (a) acquire a non-forfeitable, non-transferable annuity contract, (b) pay his/her retirement benefit from his/her account (no City or participant contributions shall be added to his account after retirement), and (c) pay a single cash sum. When a participant terminates, the Trustee shall be instructed to pay the full amount of the participant’s contributions plus the vested portion credited to his account. NOTE 11 – OTHER POST EMPLOYMENT BENEFITS (OPEB) In addition to providing pension benefits described under “Fireman’s Pension,” the City provides post-employment health care benefits. In accordance with RCW 41.26.150, all employees who become eligible after age 50 or become disabled while employed with at least five years of service in the LEOFF I System are eligible. In addition to the 10 firefighters referenced in the Fireman’s Pension Fund there currently 21 retired police officers who meet the eligibility requirements. Under authorization of the Disability Board, the City pays medical insurance premiums and medical expenses including long-term care. Post-employment health care benefits are being funded on a pay as you go basis. The retiree does not contribute towards the cost of his/her medical care. Post-employment health care costs of $385,959 and long-term care costs of $98,009 were reported in the LEOFF 1 Medical Reserve Fund 009. At December 31, 2011 there was $320,656 of cash and cash equivalents available to pay benefits. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation were as follows: Packet Page 170 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS Fiscal Year Ending 12/31 Annual OPEB Cost Contribution as a Percentage of Annual OPEB Cost 2009 589,639$ 81% 319,076$ 2010 587,305 89% 383,211 2011 593,358 91% 437,472 Net OPEB Obligation The City’s annual OPEB and Net OPEB obligation for the current and preceding year were as follows: 12/31/2009 12/31/2010 12/31/2011 Annual Normal Cost (BOY)-$ -$ -$ Amortization of UAAL (BOY)570,510 570,510 577,965 Interest to EOY [(1)+(2)]x(i)*22,820 22,820 23,119 Annual Required Contribution (ARC) at EOY [(1)+(2)+(3)]593,330$ 593,330$ 601,084$ Interest on Net OPEB Obligation 8,341 12,763 15,328 Adjustment to ARC 12,032 18,788 23,054 Annual pension cost (APC) [(4)+(5)-(6)]589,639$ 587,305$ 593,358$ Employer Contributions**479,076 523,170 539,097 Change in Net OPEB Obligation [(7)-(8)]110,563 64,135 54,261 Net OPEB Obligation at BOY [(11) prior year]208,513$ 319,076$ 383,211$ Net OPEB Obligation at EOY [(9)+(10)]319,076$ 383,211$ 437,472$ * 'i' is the assumed interest rate that year: 4.0% in 2009, 4.0% in 2010, 4.0% in 2011. Actuarial Information GASB Statement 45, Accounting and Financial Reporting by Employers for Post-employment Benefits other than Pensions requires the disclosure of the employer liability for retiree medical subsidies and other post-employment benefits. On January 1, 2012, Northwest Plan Services, Inc., actuaries and consultants, completed an actuarial valuation. In order to comply with reporting requirements, they computed the annual required contribution (ARC) using the Entry Age Cost Normal Actuarial Method. This valuation was updated as of December 31, 2011. The ARC is equal to an amount required each year to fully fund the liability. The amount allocated to each year is called the Normal Cost and the portion of the Actuarial Present Value of all benefits not provided for by future Normal Cost payments is called the Actuarial Liability. Since all members have already retired, the annual Normal Cost is zero. The Unfunded Actuarial Accrued Liability (UAAL) is the Actuarial Accrued Liability minus the actuarial value of the Fund’s assets. The UAAL is amortized as a level dollar amount over a closed 30 years beginning January 1, 2007. Significant actuarial assumptions used in the valuation include:  4.0 percent investment return, compounded annually  2.5 percent increase in consumer price index  7.25 percent increase in medical inflation rate, trending down to 5.0 percent after 9 years Packet Page 171 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS  5.0 percent increase in long term care inflation rate  Asset valuation method N/A Association of Washington Cities Employee Benefit Trust (Trust) Trust Description. The City is a Participating Employer in the Association of Washington Cities Employee Benefit Trust, a cost-sharing multiple-employer welfare benefit plan administered by the Association of Washington Cities. The Trust provides medical benefits to certain eligible retired employees of the Participating Employers and their eligible family members. Under Article VII of the Trust document, the Trustees have the authority and power to amend the amount and nature of the medical and other benefits provided by the Trust. The Trust issues a publicly available financial report that includes financial statements and required supplementary information for the Trust. That report, along with a copy of the Trust document, may be obtained by writing to Trust at 1076 Franklin Street SE, Olympia, WA 98501-1346 or by calling 1-800-562- 8981.. Funding Policy. The Trust provides that contribution requirements of Participating Employers and of participating employees, retirees and other beneficiaries, if any, are established and may be amended by the Board of Trustees of the Trust. Retirees of the City receiving medical benefits from the Trust contribute the following amounts: AWC Healthfirst 1000 Plan $751.55 per month for non-Medicare enrolled retiree-only coverage, $1,507.70 for non-Medicare enrolled retiree and spouse coverage, $410.35 for Medicare enrolled retiree and $825.35 for Medicare enrolled retiree and spouse coverage and for the Selections 1000 Plan $703.45 per month for non-Medicare enrolled retiree-only coverage, $1,411.45 for non-Medicare enrolled retiree and spouse coverage, $375.55 for Medicare enrolled retiree and $755.70 for Medicare enrolled retiree and spouse coverage Participating Employers are contractually required to contribute at a rate assessed each year by the Trust. The required contribution rate expressed as a percentage of current year covered payroll is 18.6 percent. The City’s contribution to the Trust for the year ended December 31, 2011 was $2,991,086, which equaled the required contribution for the year. Retiring employees from a Participating Employer have several retiree medical plans to choose from. The AWC Trust works directly with the retired employee, and no monies pass through the former employer. Additionally, the AWC Trust pools the health care costs of the retiree medical programs, and rates the programs accordingly. Currently, the AWC Trust Board of Trustees have committed to a retiree medical plan subsidy of 25% which is drawn from the accumulated medical reserve fund. The medical reserves have accumulated over the years from excess premium contributions of employers, active employees and retirees in favorable claims years. The Trust Board of Trustees can change their retiree medical plan subsidy policy in any given year. NOTE 12 – LONG-TERM DEBT The City of Edmonds’ issues general obligation and revenue bonds to finance the acquisition and construction of major capital facilities and capital programs. Bonded indebtedness has also been entered into in 2011 to advance refund two of the City’s revenue bonds. General obligation bonds have been issued in the past for both general government and business- type activities and are being repaid from the applicable resources. Governmental Activities long-term debt is paid from property and sales tax revenues. The revenue bonds are being repaid by the revenues generated by the related utility. The City of Edmonds is also liable for eight Public Works Trust Fund Loans; three are general obligation loans and five businesses-type loans. The notes are considered obligations of both the general government and the Utility and are being repaid from the applicable resources. The City is in compliance with all Washington State debt limitation statutes and bond indenture agreements. Packet Page 172 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS General obligation bonds currently outstanding are as follows: Maturity Interest Original Principal Balance Issue Name Date Rates Amount Installments 12/31/11 Governmental Debt: General Obligation Bonds: 1998 LTGO Ref. Bonds - Capital Improvements 12/01/2014 4.00-4.40% 4,163,712$ $274,000- $473,994 1,212,868$ 2001 LTGO Bonds - Capital Improvements 12/01/2021 3.00-4.90% 2,545,000 $87,759 - $188,055 1,533,693 2001 LTGO Bonds - Park Acquisition 12/01/2021 2.65-5.45% 2,260,000 $70,000 - $175,000 1,390,000 2002 LTGO Bonds - Performing Arts Center 12/01/2026 3.00-4.90% 7,015,000 $50,000 - $460,000 5,970,000 2003 UTGO Ref. Bonds - Public Safety Buildings 12/01/2016 2.00-3.50% 7,000,000 $70,000 - $960,000 4,275,000 2007 LTGO Bonds - Capital Improvements 3/15/2026 3.65-3.95% 1,384,904 $130,000-$370,000 1,138,640 Total Governmental GO Bonds 24,368,616 15,520,201 Business-type Debt: General Obligation Bonds: 1998 LTGO Ref. Bonds - Capital Improvements 12/01/2021 3.00-4.90% 316,288 $20,827 - $36,006 92,133 2001 LTGO Bonds - Capital Improvements 12/01/2014 4.00-4.40% 500,000 $17,241 - $36,945 301,307 2007 LTGO Bonds - Capital Improvements 3/15/2026 3.65-3.95% 3,845,096 $130,000-$370,000 3,161,360 Total Business- type GO Bonds 4,661,384 3,554,800 Total General Obligation Bonds 29,030,000$ 19,075,001$ Revenue bonds currently outstanding are as follows: Maturity Interest Original Principal Balance Issue Name Date Rates Amount Installments 12/31/11 Business- type Debt: Revenue Bonds 1998 Water/Sewer Refunding Bonds 12/01/2013 4.00-4.85% 2,420,000$ $235,000 - $1,290,000 -$ 2003 Water/Sewer Refunding Bonds 12/01/2022 2.00-4.45% 7,875,000 $130,000 - $1,045,000 - 2011 Water/Sewer Bonds 12/1/2031 3.65-3.95% 13,720,000 $470,000 - $945,000 13,720,000 Total Revenue Bonds 24,015,000$ 13,720,000$ Public Works Trust Fund Loans currently outstanding are as follows: Packet Page 173 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS Maturity Interest Original Principal Balance Issue Name Date Rates Amount Installments 12/31/11 Governmental Debt: Public Works Trust Fund Loans: P W Trust Fund Loan - Street Construction 06/30/22 0.50% 340,000$ $13,421 - $18,143 199,577$ P W Trust Fund Loan - Street Construction 06/30/24 0.50% 400,000 $20,000 - $21,176 275,295 P W Trust Fund Loan - Street Construction 05/24/26 0.50% 624,750 $32,882 493,223 Total Governmental Debt Public Works Trust Fund Loans 1,364,750 968,095 Business-type Debt: Public Works Trust Fund Loans: P W Trust Fund Loan - Trt. Plant/Sewer Improv. 06/30/22 0.50% 1,347,250 $67,363 - $71,325 784,575 P W Trust Fund Loan - Water Improvements 06/30/24 0.50% 408,000 $4,295 - $25,839 335,906 P W Trust Fund Loan - Storm Improvements 06/30/24 0.50% 605,625 $30,281 - $32,063 416,813 P W Trust Fund Loan - Sewer Improvements 06/30/25 0.50% 1,216,902 $12,809 - $67,615 946,607 P W Trust Fund Loan - 09 Water Improvements 07/01/15 0% 100,000 $18,000 - $20,000 80,000 Total Business- type Debt Public Works Trust Fund Loans 3,677,777 2,563,901 Total Public Works Trust Fund Loans $5,042,527 $3,531,996 Capital Contracts currently outstanding are as follows: Maturity Interest Original Principal Balance Issue Name Date Rates Amount Installments 12/31/11 Governmental Debt: Capital Contracts 1996 Note - Fire Station #10 01/01/2015 1.00% 1,136,115$ $54,592 - $65,300 257,345$ 2005 Contract - Public Safety Radio Equipment 12/01/2019 3.00-5.00% 1,595,046 $77,457 - $141,288 972,518 Total Capital Contracts 2,731,161$ 1,229,863$ Debt Limit RCW 39.36.020 provides cities with three segments of debt capacity, each equal to two and one- half percent of the city’s assessed valuation, for a total of seven and one-half percent (7.5%). Allowable uses of these segments are as follows: Segment 1 – General Governmental Purposes The City can incur debt up to one and one-half percent (1.5%) of its assessed valuation solely with a vote of the legislative body (often referred to as “councilmanic” debt). To use the remaining one percent (1%), a 60 percent vote in favor of the issue by at least 40 percent of the voters voting in the last general election is required. Segment 2 – City-Owned Water and Sewer Purposes The City can incur debt up to an additional two and one-half percent (2.5%) for water and sewer purposes with a 60 percent vote in favor of the issue by at least 40 percent of the voters voting in the last general election. Segment 3 – Acquiring and Developing Open Space, Parks Facilities, and Capital Facilities Associated with Economic Development Packet Page 174 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS The City can incur debt up to an additional two and one-half percent (2.5%) for acquiring and developing open space, parks facilities, and capital facilities associated with economic development purposes with a 60 percent vote in favor of the issue by at least 40 percent of the voters voting in the last general election. Debt Limit Capacity Water & Sewer Purposes Park & Capital Facilities Item Without Vote (Councilmanic) 1.5% With Vote 2.5% With Vote 2.5% With Vote 2.5% Legal Limits 86,919,667$ 57,946,445$ 144,866,112$ 144,866,112$ Net outstanding indebtedness (20,285,748) (4,275,000) - - Margin Available 66,633,919$ 53,671,445$ 144,866,112$ 144,866,112$ Governmental Purposes Refunded Debt In prior years, the City has defeased several revenue bond issues by creating separate irrevocable trust funds. New debt has been issued and the proceeds used to purchase U.S. Government securities that were placed in the trust funds. Investments and fixed earnings from the investments are sufficient to fully service the defeased debt until the debt is called or matures. For financial reporting purposes, the debt is considered defeased and therefore removed as a liability from City financial statements. In 2011, the City issued $445,000 in revenue bonds with annual interest rates ranging from 1.81% to 2.31% to refund $560,000 of outstanding 1998 refunding revenue bonds with annual interest rates ranging from 4.80% to 4.85%. The net proceeds of $564,203, after underwriting fees and issuance costs, were deposited in an irrevocable trust with U.S. Bank National Association. The City also issued $1,480,000 in revenue bonds with annual interest rates ranging from 2.38% to 2.52% to refund $1,910,000 of outstanding 2003 refunding revenue bonds with annual interest rates ranging from 4.00% to 4.45%. The net proceeds of $1,988,880 were also deposited in an irrevocable trust with U.S. Bank National Association. There was a net present value savings in the amount of $114,207 for an economic gain. The City also issued new debt in 2011. The net proceeds of $11,000,000, after underwriter fees and issuance costs, were deposited into the Capital Projects Fund for various improvement projects of the City water, sewer and storm systems. Debt Service to Maturity The requirements to amortize the long-term debt as of December 31, 2011 are presented below. Debt service for the LTGO bonds are met by the General Fund and certain special revenue funds, and reimbursements from proprietary funds of the City with the exception of the 2002 LTGO issue. The PFD is obligated by inter-local agreement to transfer sales tax rebate revenues to the City to help offset the City’s debt service costs over the life of these bonds (refer to Note 1 – Reporting Entity). Debt service for the UTGO bonds are covered by property tax levies that authorized the bond issues. Debt service for the revenue bonds is paid by the Utility Fund. Debt service for the capital contracts is expended from the General Fund. In prior years the City has typically used the General Fund to liquidate long-term liabilities other than debt. Packet Page 175 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS Following is a table which reflects debt service to maturity for Governmental Activities and Business-Type Activities. Year Principal Interest Total Principal Interest Total 2012 1,965,761$ 708,925$ 2,674,685$ 909,221$ 590,685$ 1,499,907$ 2013 1,940,390 637,225 2,577,615 950,246 607,494 1,557,740 2014 2,047,535 567,437 2,614,972 969,478 587,828 1,557,306 2015 1,767,798 492,535 2,260,333 964,879 562,308 1,527,187 2016 1,805,065 428,071 2,233,137 968,052 537,251 1,505,303 2017-2021 4,752,720 1,392,138 6,144,858 5,259,143 2,260,889 7,520,032 2022-2026 3,438,889 458,610 3,897,498 5,442,681 1,394,741 6,837,421 2027-2031 - - - 4,375,000 535,363 4,910,363 17,718,158$ 4,684,940$ 22,403,098$ 19,838,702$ 7,076,557$ 26,915,259$ GOVERNMENTAL ACTIVITIES BUSINESS TYPE ACTIVITIES At December 31, 2011 the City had $984,163 in the Enterprise fund available for debt service. Arbitrage The Federal Tax Reform Act of 1986 requires tax-exempt debt issuers to pay investment income received at yields that exceed the issuer's borrowing rates to the United States Treasury. The liability is recorded at present value and payable every five years or 60 days after defeasance of the debt. At December 31, 2011, the City of Edmonds had no arbitrage liability. Revenue Bond Debt Service Coverage The required debt service coverage for the 2011 utility revenue bonds is 1.25. Please refer to Schedule 16 in the statistical section. The restricted rate stabilization fund for the utility revenue bonds was established to minimize the effect on rates of revenue fluctuations between years. By transferring cash into this stabilization fund, adjusted net revenue available for debt service, as defined, would be decreased by the amount of the transfer. Conversely, transfers out of the account would increase adjusted net revenue available for debt service. NOTE 13 – CHANGES IN LONG-TERM LIABILITIES During the year ended December 31, 2011, the following changes occurred in long-term liabilities: Packet Page 176 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS Beginning Balance 1/1/2011 Additions Reductions Ending Balance 12/31/2011 Due Within One Year Governmental activities Bonds payable: General obligation bonds 17,157,406$ -$ (1,637,205)$ 15,520,201$ 1,727,620$ Total bonds payable:17,157,406 - (1,637,205) 15,520,201 1,727,620 Net Pension Obligation 181,254 38,811 - 220,065 - OPEB payable 464,517 - (27,045) 437,472 - Compensated absences 2,634,985 2,045,441 (1,885,746) 2,794,680 1,923,461 Capital contracts 1,390,871 - (161,008) 1,229,863 165,939 Public Works Trust Loan 1,040,296 - (72,201) 968,095 72,201 Governmental activity long-term liabilities 22,869,329$ 2,084,252$ (3,783,205)$ 21,170,376$ 3,889,221$ Business-type activities Bonds Payable: General obligation bonds 3,767,595$ -$ (212,795)$ 3,554,800$ 222,380$ Revenue bonds 2,870,000 13,720,000 (2,870,000) 13,720,000 470,000 Less deferred amounts: For issuance premiums 28,271 419,715 (28,271) 419,715 20,986 For issuance discount (19,233) - 6,068 (13,165) (868) On refunding (143,828) (254,127) 143,828 (254,127) (72,000) Total bonds payable:6,502,805 13,885,588 (2,961,170) 17,427,223 640,498 Compensated absences 419,328 453,602 (456,736) 416,194 416,194 Public Works Trust Loan 2,748,774 30,400 (215,273) 2,563,901 216,842 Business-type activity long-term liabilities 9,670,907$ 14,369,590$ (3,633,179)$ 20,407,318$ 1,273,534$ Internal service funds predominately serve the governmental funds. Accordingly, the December 31, 2011 long-term liabilities for the fund are included as part of the above totals for governmental activities. At year end $54,283 of internal service funds compensated absences are included in the above amounts. NOTE 14 – CONTINGENCIES AND LITIGATIONS The City is exposed to the risk of loss from torts, theft of or damage to assets, business interruption, errors or omissions, law enforcement actions, contractual actions, natural disasters, environmental regulations, and other third-party liabilities. The City also bears the risk of loss for job-related illnesses and injuries to employees. The City has insurance policies to cover these general liability risks with the Washington Cities Insurance Authority (WCIA). Refer to Note 13 for more detailed information on risk management. There are several disputes and pending lawsuits in which the City is named. The City Attorney estimates the potential claims against the City not covered by insurance resulting from such disputes and litigation could range from $420,000 to $1,400,000 and estimates the likelihood of this range is from reasonably possible to remote. The City participates in a number of federal- and state-assisted programs. These programs are subject to audit by the governmental unit administering the program or their representative. Such audits could result in requests for reimbursement of disallowed expenditures. Based on audit history, City management believes that any disallowance will be immaterial. Packet Page 177 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS The City Council approved a guaranty of a borrowing of the Edmonds Public Facilities District for up to $7 million. This guaranty represents an outstanding contingent liability of the City. NOTE 15 – RISK MANAGEMENT The City of Edmonds is a member of the Washington Cities Insurance Authority (WCIA). Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self- insuring, and / or jointly contracting for risk management services. WCIA has a total of 150 Members. New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one-year withdrawal notice is required before membership can be terminated. Termination does not relieve a former member from its unresolved loss history incurred during membership. Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile, police, public officials’ errors or omissions, stop gap, and employee benefits liability. Limits are $4 million per occurrence self-insured layer, and $16 million per occurrence in the re-insured excess layer. The excess layer is insured by the purchase of reinsurance and insurance and is subject to aggregate limits. Total limits are $20 million per occurrence subject to aggregate sublimits in the excess layers. The Board of Directors determines the limits and terms of coverage annually. Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and machinery are purchased on a group basis. Various deductibles apply by type of coverage. Property insurance and auto physical damage are self-funded from the members’ deductible to $500,000, for all perils other than flood and earthquake, and insured above that amount by the purchase of insurance. In-house services include risk management consultation, loss control field services, claims and litigation administration, and loss analyses. WCIA contracts for the claims investigation consultants for personnel issues and land use problems, insurance brokerage, and lobbyist services. WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses. As outlined in the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall. A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day to day operations of WCIA. In the past four years, settlements have not exceeded insurance coverage. Workers’ Compensation Title 51 RCW requires the City to ensure payment of benefits for job-related injuries and diseases through the Workers’ Compensation fund or through self-insurance. The City participates in the State of Washington’s Workers’ Compensation program. Premiums are based on individual Packet Page 178 of 393 CITY OF EDMONDS NOTES TO THE FINANCIAL STATEMENTS employer’s reported payroll hours and insurance rates based on each employer’s risk classification and past experience. The premium is paid by employer and employee contributions. NOTE 16 – JOINT VENTURE The City entered into a joint venture with Snohomish County and other local governments in the establishment and operations of the Snohomish County Emergency Radio System. Control of this joint venture is shared equitably by the controlling organizations. This entity is reported as a governmental joint venture. The Snohomish County Emergency Radio System is considered a separate reporting entity. The City’s and each participants share of authority is defined by the terms of the enabling charter. Control as represented by the City Council or Board of County Commissioners is divided between the County and participating Cities. Separate financial statements for the Snohomish County Emergency Radio System can be obtained from Snohomish County. The Snohomish County Emergency Radio System was created by agreement under the Interlocal Cooperation Act (RCW 39.34) between The City of Edmonds, Snohomish County and various other cities and political districts. The purpose of the venture is to equip and operate a radio system primarily for the use of public safety agencies. The City of Edmonds has an 8% interest in the equity and operations of the venture. The City’s share of the assets and fund equity as of December 31, 2011 was $511,074. The venture appears to be accumulating significant resources, and is not experiencing any fiscal stress that would cause an additional financial burden on the participating governments. NOTE 17 – COMMITMENTS The City has several capital improvement projects in progress. As of December 31, 2011, the City’s outstanding contractual obligations, which include construction and engineering contracts, are summarized below: Contract Name Original Amount Expenditures to Date Remaining Commitment 2010 Waterline Replacement Program 1,886,334$ 1,738,774$ 147,560$ 2011 Waterline Replacement Program 2,217,161 1,300,078 917,083 2011 Waterline Replacement-Dayton 39,694 27,142 12,552 2012 Waterline Replacement Program 50,203 50,116 86 226th St. SW Walkway Project 18,631 17,361 1,269 228th Street SW Corridor Improvements 411,517 132,043 279,474 76th Ave W/75th Pl W Walkway 2,437,470 2,341,679 110,321 City Streets-Condition Survey 21,400 1,200 20,200 Five Corners Roundabout 310,315 71,304 239,011 Fourth Avenue Cultural Corridor 100,000 98,200 1,800 Interurban Trail 2,228,249 1,832,860 395,389 Lift Station 2 Replacement Program 1,156,504 1,035,553 120,951 Shell Valley Emergency Access Road 314,122 284,926 29,196 SR99 International District Enhancements 131,300 108,805 22,495 Stormwater Development Review Support 10,000 2,706 7,294 Sunset Walkway Project 9,885 4,117 5,768 Talbot Road/Perrinville Creek Drainage Imp.164,393 122,387 42,006 Utilities Revenue Requirement Update 13,750 12,950 800 Water Modeling Services 15,000 4,122 10,878 Lighting Upgrade 45,724 22,862 22,862 Outfall Diffuser 55,133 45,600 9,533 Energy Efficiency Upgrade - Blower Project 381,479 349,579 31,900 ATS Electrical Switchgear 25,000 - 25,000 Fibre Optic 25,000 - 25,000 12,068,265$ 9,604,365$ 2,478,428$ Packet Page 179 of 393 CITY OF EDMONDS REQUIRED SUPPLEMENTAL INFORMATION FIREMEN’S PENSION TRUST FUND SCHEDULE OF FUNDING PROGRESS (rounded to thousands) Actuarial Unfunded Acturial UAAL as a Actuarial Actuarial Value Accrued Accrued Liabilities Funded Covered Percentage of Valuation Date of Assets Liabilities (UAAL) Ratio Payroll Covered Payroll January 1, 2010 267$ 774$ 507$ 34% N/A N/A January 1, 2008 297 871 574 34% N/A N/A January 1, 2006 301 704 403 43% N/A N/A January 1, 2004 397 702 305 57% N/A N/A SCHEDULE OF EMPLOYER CONTRIBUTIONS Fiscal Year Ending 12/31 Medical and Long Term Care Payments Fire Insurance Premium Taxes Total Employer Contributions*** Annual Required Contributio n 2011 (6,307)$ 78$ (6,229)$ 38,602$ -16% 2010 (13,708) 44,905 31,197 40,903 76% 2009 (8,589) 42,172 33,583 40,903 82% 2008 (4,524) 44,226 39,702 28,629 139% 2007 (25,575) 42,531 16,956 28,629 59% 2006 (59,930) 38,540 (21,390) 23,901 -89% 2005 (62,106) 35,519 (26,587) 23,901 -111% 2004 (68,388) 33,452 (34,936) 14,060 -248% Percentage of ARC Contributed** RETIREE MEDICAL AND LONG-TERM CARE BENEFITS FOR LEOFF 1 EMPLOYEES SCHEDULE OF FUNDING PROGRESS (rounded to thousands) Actuarial Unfunded Acturial UAAL as a Actuarial Actuarial Value Accrued Accrued Liabilities Funded Covered Percentage of Valuation Date of Assets Liabilities (UAAL) Ratio Payroll Covered Payroll January 1, 2010 -$ 9,607$ 9,607$ 0% N/A N/A January 1, 2008 - 9,887 9,887 0% N/A N/A January 1, 2006 - 8,635 8,635 0% N/A N/A SCHEDULE OF EMPLOYER CONTRIBUTIONS Fiscal Year Ending 12/31 Total Employer Contributions*** Annual Required Contribution 2011 539,097$ 601,084$ 90% 2010 523,170 593,330 88% 2009 479,076 593,330 81% 2008 444,701 561,707 79% 2007 469,004 561,707 83% Percentage of ARC Contributed** Packet Page 180 of 393 CITY OF EDMONDS REQUIRED SUPPLEMENTAL INFORMATION NOTES TO REQUIRED SUPPLEMENTAL INFORMATION FIREMEN’S PENSION TRUST FUND Actuarial Valuations Actuarial valuation date January 1, 2010 Actuarial cost method Entry age normal Amortization method 30 year, closed as of January 1, 2000 Remaining amortization period 20 years Asset valuation method Fair market value Assumptions Investment rate of return 4.00% Projected salary increases 3.50% Price inflation 2.50% Based upon salary increase assumptions when appropriate for Trust benefits. * Based upon inflation assumption for some Trust benefits and all LEOFF benefits. * Under the Firemen's Pension Trust Fund, most adjustments are based on the change in salary for the rank of members held at retirement or based on the Consumer Price Index. Adjustments are determined in accordance with RCW 41.18.150, RCW 41.20 and RCW 41.26. RETIREE MEDICAL AND LONG-TERM CARE BENEFITS FOR LEOFF 1 EMPLOYEES Actuarial Valuations Actuarial valuation date January 1, 2010 Actuarial cost method Entry age normal Amortization method 30 year, closed as of January 1, 2007 Remaining amortization period 27 years Asset valuation method Fair market value Assumptions Investment rate of return 4.00% Medical inflation rate 7.25%, downgrading to 5.00% over nine years Long-term care inflation 5.00% Packet Page 181 of 393 MCAG No. 0661 Schedule 16 CITY OF EDMONDS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For Year Ended December 31, 2011 1 2 3 4 5 6 Expenditures Federal Agency CFDA Other I.D.From Foot- Name / Pass-through Agency Name Federal Program Name Number Number Pass- Through Awards From Direct Awards Total note Ref. 15.904 53-07-PA- 3075 7,500 7,500 15.904 53-10-AP- 5051 1,631 1,631 US Department of Justice Bulletproof Vest Partnership Program 16.607 N/A 4,410 4,410 Federal Highway Agency/U.S. DOT ARRA - Highway Planning and Construction 20.205 ARRA-0365 (001)359 359 3 20.205 CM-2512 (007)67,142 67,142 20.205 STPE- 2512(008)54,874 54,874 20.205 STPUL-2502 (001)125,995 125,995 20.205 EDM-13 597,753 597,753 20.205 HSIP-2501 (003)106,397 106,397 20.205 EDM-21 1,187 1,187 20.205 STPE- 0099(100)25,204 25,204 National Highway Traffic Safety Administration (NHTSA) State and Community Highway Safety 20.600 N/A 1,700 1,700 Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601 N/A 4,598 4,598 State and Community Highway Safety 20.609 N/A 9,848 9,848 U.S. Department of Energy ARRA - Energy Efficiency and Conservation Block Grant Program (EECBG) 81.128 ARRA RW 0000-103 73,588 73,588 3 Total Federal Awards Expended $995,056 $87,129 $1,082,185 *See accompanying notes National Park Service/Department of the Interior Historic Preservation Fund Grants- In-Aid Federal Highway Agency/U.S. DOT Highway Planning and Construction Washington State Traffic Safety Commission/U.S. DOT Packet Page 182 of 393 CITY OF EDMONDS, WASHINGTON NOTES TO THE SCHEDULE OF EXPENDITURES OF FINANCIAL ASSISTANCE For the Year Ended December 31, 2011 NOTE 1 – BASIS OF ACCOUNTING This schedule is prepared on the same basis of accounting as the city of Edmond’s financial statements. The City uses the modified accrual accounting method which is followed in all government funds, expendable trust, and agency funds and the full accrual accounting method in its proprietary funds. NOTE 2 – PROGRAM COSTS The amounts shown as current year expenditures represent only the grant portion of the program costs. Entire program costs, including the City’s portion, may be more than shown. NOTE 3 – AMERICAN RECOVERY AND REINVESTMENT ACCT (ARRA) OF 2009 Expenditures for this program were funded by ARRA. NOTE 4 – FEDERAL LOANS The City does not have any federal loans. NOTE 5 – REVOLVING LOAN – PROGRAM INCOME The City does not have any revolving loans. Packet Page 183 of 393 ABOUT THE STATE AUDITOR'S OFFICE The State Auditor's Office is established in the state's Constitution and is part of the executive branch of state government. The State Auditor is elected by the citizens of Washington and serves four-year terms. Our mission is to work with our audit clients and citizens as an advocate for government accountability. As an elected agency, the State Auditor's Office has the independence necessary to objectively perform audits and investigations. Our audits are designed to comply with professional standards as well as to satisfy the requirements of federal, state, and local laws. The State Auditor's Office employees are located around the state to deliver services effectively and efficiently. Our audits look at financial information and compliance with state, federal and local laws on the part of all local governments, including schools, and all state agencies, including institutions of higher education. In addition, we conduct performance audits of state agencies and local governments and fraud, whistleblower and citizen hotline investigations. The results of our work are widely distributed through a variety of reports, which are available on our Web site and through our free, electronic subscription service. We take our role as partners in accountability seriously. We provide training and technical assistance to governments and have an extensive quality assurance program. State Auditor Brian Sonntag, CGFM Chief of Staff Ted Rutt Deputy Chief of Staff Doug Cochran Chief Policy Advisor Jerry Pugnetti Director of Audit Chuck Pfeil, CPA Director of Performance Audit Larisa Benson Director of Special Investigations Jim Brittain, CPA Director for Legal Affairs Jan Jutte, CPA, CGFM Director of Quality Assurance Ivan Dansereau Local Government Liaison Mike Murphy Communications Director Mindy Chambers Public Records Officer Mary Leider Main number (360) 902-0370 Toll-free Citizen Hotline (866) 902-3900 Website www.sao.wa.gov Subscription Service https://www.sao.wa.gov/EN/News/Subscriptions/ Packet Page 184 of 393 Packet Page 185 of 393 Packet Page 186 of 393    AM-5054     4. K.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Bertrand Hauss Submitted By:Megan Cruz Department:Engineering Committee: Planning, Parks, Public Works Type: Action Information Subject Title Authorization for Mayor to sign Supplemental Agreement #2 with David Evans & Associates for the 76th Ave. W @ 212th St. SW Intersection Improvement Project. Recommendation Authorize Mayor to sign Supplemental Agreement #2. Previous Council Action On September 13, 2011, City Council authorized the Mayor to advertise for Request for Qualifications (RFQ) to complete the design and right-of-way acquisition phases for the 76th Ave. W @ 212th St. SW Intersection Improvement project. On August 14, 2012, the Planning, Parks and Public Works committee reviewed this item and recommended it be placed on the consent agenda for approval.  Narrative 76th Ave W @ 212th Street SW is one of the busiest signalized intersections in the City and is served by two federally classified minor arterial streets. The intersection experiences long queues during peak commute and school hours due to the limited capacity of the intersection. Both approaches of 76th Ave W have two shared lanes with no dedicated left turn lane; the left turn volumes are very high, and are timed independently by split phasing signal timing. The proposed improvement will provide dedicated left turn lanes on 76th Ave W and concurrent turning movements during the protected left turn phase. This project will increase the capacity and signal operation of the intersection, as well as improve traffic flow, vehicle delay and air quality related to reduced vehicle emissions. A federal grant (through Congestion Mitigation and Air Quality program) for $940,397 has been secured to begin the design and right of way phases. The grant requires a local match of 13.5% ($146,700) and this amount will be funded by the Street Fund 112. In the initial Consultant Agreement and Supplement #1, David Evans & Associates identified that intersection improvements (as mentioned in the grant application with dedicated left turn lanes) should be combined with corridor improvements by converting both corridors (76th Ave W from 220th St. SW to 196th St. SW and 212th St. SW from 84th Ave. W / Five Corners to Hwy. 99) to a 3-lane roadway with bike lanes and a two-way left turn lane/left turn pockets.  Three conceptual design options were created (see attachment #2 for intersection layout) by shifting the intersection improvements to the west (Option #1), to the east (Option #2), and following Option #2 by combining the bike lane and right turn lane into one 14’ wide lane for all approaches (Option #3). Upon completion of this initial contract, it was Packet Page 187 of 393 determined that the 5-lane 76th Ave. W alternative should still be considered (as mentioned in the grant application) and compared with the preferred option from the three mentioned above.  As part of Supplemental #2, the 5-lane 76th Ave W alternative and one of the three options evaulated in the preliminary design phase will be completed to the 30% design level and compared based on intersection/corridor layout, traffic flow, air quality benefits, and total cost.  Upon selection of the preferred alternative, the consultant services will include completion of the environmental documents, plans, specifications, and cost estimates. The professional services cost for right-of-way acquisition will be added as part of a future supplemental agreement, once the preferred option has been determined. A funding source to construct the project has not been secured, but the completion of the design and right of way phases will help the project compete and score well on future grant applications. Attachments Attachment 1 - Supplement 2 Attachment 2 - Concept Design Options Form Review Inbox Reviewed By Date Engineering Robert English 08/16/2012 12:18 PM Public Works Kody McConnell 08/16/2012 03:48 PM City Clerk Linda Hynd 08/16/2012 04:09 PM Mayor Dave Earling 08/17/2012 08:53 AM Finalize for Agenda Linda Hynd 08/17/2012 09:00 AM Form Started By: Megan Cruz Started On: 08/15/2012 03:18 PM Final Approval Date: 08/17/2012  Packet Page 188 of 393 P a c k e t P a g e 1 8 9 o f 3 9 3 P a c k e t P a g e 1 9 0 o f 3 9 3 P a c k e t P a g e 1 9 1 o f 3 9 3 P a c k e t P a g e 1 9 2 o f 3 9 3 P a c k e t P a g e 1 9 3 o f 3 9 3 P a c k e t P a g e 1 9 4 o f 3 9 3 P a c k e t P a g e 1 9 5 o f 3 9 3 P a c k e t P a g e 1 9 6 o f 3 9 3 P a c k e t P a g e 1 9 7 o f 3 9 3 P a c k e t P a g e 1 9 8 o f 3 9 3 P a c k e t P a g e 1 9 9 o f 3 9 3 P a c k e t P a g e 2 0 0 o f 3 9 3 P a c k e t P a g e 2 0 1 o f 3 9 3 P a c k e t P a g e 2 0 2 o f 3 9 3 P a c k e t P a g e 2 0 3 o f 3 9 3 P a c k e t P a g e 2 0 4 o f 3 9 3 P a c k e t P a g e 2 0 5 o f 3 9 3 P a c k e t P a g e 2 0 6 o f 3 9 3 P a c k e t P a g e 2 0 7 o f 3 9 3 P a c k e t P a g e 2 0 8 o f 3 9 3 P a c k e t P a g e 2 0 9 o f 3 9 3 P a c k e t P a g e 2 1 0 o f 3 9 3 P a c k e t P a g e 2 1 1 o f 3 9 3 P a c k e t P a g e 2 1 2 o f 3 9 3 P a c k e t P a g e 2 1 3 o f 3 9 3 P a c k e t P a g e 2 1 4 o f 3 9 3 P a c k e t P a g e 2 1 5 o f 3 9 3 P a c k e t P a g e 2 1 6 o f 3 9 3 Pa c k e t Pa g e 21 7 of 39 3 Pa c k e t Pa g e 21 8 of 39 3 Pa c k e t Pa g e 21 9 of 39 3 Pa c k e t Pa g e 22 0 of 39 3 Pa c k e t Pa g e 22 1 of 39 3    AM-5058     4. L.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Rob English Submitted By:Robert English Department:Engineering Committee: Planning, Parks, Public Works Type: Action Information Subject Title Approval of Right-of-Way, Administrative Settlement and Appraisal Waiver Procedures on Federal-Aid Projects. Recommendation Approve all documents. Previous Council Action On August 14, 2012, the Planning, Parks and Public Works committee reviewed this item and recommended it be placed on the consent agenda for approval.  Narrative In 2001, WSDOT approved the City's right-of-way procedures on Federal-Aid projects. WSDOT approval is required before a local agency can receive authority to acquire right-of-way on projects funded by federal transportation funds. The right-of-way procedures outline the staff or professional services for each stage of the right-of-way process. Attachment 1 is the updated procedures based on the current staff within the Public Works Department.  The Administrative Settlement Procedures may be used during right-of-way negotiations to complete an acquisition in a timely manner and avoid litigation. An administrative settlement is a negotiated settlement of a right-of-way acquisition case in which the City has administratively approved payment in excess of fair market value. The revised procedures (Attachment 2) increase the settlement offer limits for the City Engineer and Public Works Director. The City Engineer limits are increased from $1,000 to $2,000 and the Public Works Director limits are increased from $1,000 or 10% of the offer to $10,000 or 10% of the offer.  The Appraisal Waiver procedure (Attachment 3) allows the City to waive an appraisal and make an offer to acquire right-of-way based on current comparable sales. The acquisition needs to be simple and have only minor cost to cure items in the compensation offer. Approval of the appraisal waiver policy will reduce project administration costs since full appraisals will only be required on complicated acquisitions or acquisitions over $25,000. The City is required to notify the property owners of the appraisal waiver decision and that one will be completed if requested by the owner.      Packet Page 222 of 393 Attachments Attachment 1 - ROW Procedures Attachment 2 - ROW Settlement Procedures Attachment 3 - ROW Appraisal Waiver Attachment 4 - ROW Procedures (w/ Track Changes) Attachment 5 - ROW Settlement Procedures (w/ Track Changes) Attachment 6 - ROW Appraisal Waiver (w/ Track Changes) Form Review Inbox Reviewed By Date Engineering Robert English 08/16/2012 12:04 PM Public Works Phil Williams 08/16/2012 12:05 PM City Clerk Linda Hynd 08/16/2012 12:14 PM Mayor Dave Earling 08/16/2012 12:30 PM Finalize for Agenda Linda Hynd 08/16/2012 12:53 PM Form Started By: Megan Cruz Started On: 08/15/2012 03:40 PM Final Approval Date: 08/16/2012  Packet Page 223 of 393 LPA-001 RES Right-of-Way Procedures AGENCY_City of Edmonds__ The City of Edmonds (“AGENCY”), desiring to acquire Real Property in accordance with the state Uniform Relocation Assistance and Real Property Acquisition Act (Ch. 8.26 RCW) and state regulations (Ch. 468-100 WAC) and applicable federal regulations hereby adopts the following procedures to implement the above statutes and Washington Administrative Code. The Public Works Department (“Department”) of the AGENCY is responsible for the real property acquisition and relocation activities on projects administered by the AGENCY. To fulfill the above requirements the Department will acquire right‑of-way in accordance with the policies set forth in the Washington State Department of Transportation Right of Way Manual and Local Agency Guidelines manual (M 36-63). The AGENCY has the following expertise and personnel capabilities to accomplish these functions: 1. Include the following as they relate to the AGENCY’s request. a. List the functions below for which the agency has qualified staff and the responsible position. Attach a list of the individuals on the AGENCY staff who currently fill those positions and a brief summary of their qualifications. This list will need to be updated whenever staffing changes occur. An AGENCY will be approved to acquire based upon staff qualifications. (1) PROGRAM ADMINISTRATION City Engineer Agency Position (2) APPRAISAL Consultant Agency Position (3) APPRAISAL REVIEW Consultant Agency Position (4) ACQUISITION Consultant Agency Position (5) RELOCATION Consultant Agency Position Packet Page 224 of 393 LPA-001 RES (6) PROPERTY MANAGEMENT Public Works Director Agency Position b. Any functions for which the Agency does not have staff will be contracted for with WSDOT, another local agency with approved procedures or an outside contractor. An AGENCY that proposes to use outside contractors for any of the above functions will need to work closely with the WSDOT Local Agency Coordinator and Highways and Local Programs to ensure all requirements are met. When the AGENCY proposes to have a staff person negotiate who is not experienced in negotiation for FHWA funded projects the Coordinator must be given a reasonable opportunity to review all offers and supporting data before they are presented to the property owners. c. An AGENCY wishing to take advantage of an Appraisal Waiver process on properties valued up to $25,000 or less should make their proposed waiver process a part of these procedures. The process outlined in LAG manual Appendix 25.146 has already been approved. The AGENCY may submit a process different than that shown and it will be reviewed and approved if it provides sufficient information to determine value. d. Attach a copy of the Agency’s administrative settlement policy showing the approving authority(s) and the process involved in making administrative settlements. 2. All projects shall be available for review by the FHWA and the state at any time and all project documents shall be retained and available for inspection during the plan development, right-of-way and construction stages and for a three year period following acceptance of the projects by WSDOT. 3. Approval of the AGENCY’s procedures by WSDOT may be rescinded at any time the Agency is found to no longer have qualified staff or is found to be in non-compliance with the regulations. The rescission may be applied to all or part of the functions approved. _____________________________________ _______________________ Mayor Date WASHINGTON STATE DEPARTMENT OF TRANSPORTATION Approved By: ______________________________________ _______________________ Real Estate Services Date Packet Page 225 of 393 CITY OF EDMONDS 121 5TH AVENUE NORTH · EDMONDS, WA 98020 · 425-771-0220 · FAX 425-672-5750 Website: www.edmondswa.gov PUBLIC WORKS DEPARTMENT Engineering Division DAVE EARLING MAYOR Incorporated August 11, 1890 August 6, 2012 City of Edmonds Right-of-Way Administrative Settlement Procedures for Federal-Aid Projects The City of Edmonds follows the Washington State Department of Transportation’s (WSDOT) Acquisition Procedures as set forth in the WSDOT Right-of-Way Manual and also detailed in the WSDOT Local Agency Guideline Manual. All appropriations for right-of-way acquisitions shall be approved by the City Council in the budget and in projects designated in the Transportation Improvement Plan (TIP), or as otherwise approved. If during acquisition, an agreement to purchase cannot be reached based upon just compensation given on the “Summary of Offer”, the following parameters shall serve as a guideline for an administrative settlement: A. The City Engineer may authorize acquisition agents to offer up to $2,000 in excess of the amount of just compensation shown on the “Summary of Offer”. B. The Public Works Director is authorized to offer for each parcel an administrative settlement from $10,000 up to a maximum of ten percent in excess of the amount of just compensation shown on the “Summary of Offer”, so long as such amount(s) have been budgeted or otherwise appropriated by the City Council. C. The Public Works Director must submit proposed settlements to City Council that are in excess of the approval authorities listed in A and B. D. All exercise of eminent domain authority shall be approved by the City Council. By: David O. Earling, Mayor Date Packet Page 226 of 393 Appraisal Waiver Procedure WAIVER OF APPRAISAL The City of Edmonds desiring to acquire Real Property according to 23 CFR, Part 635, Subpart C and State directives and desiring to take advantage of the $25,000.00 appraisal waver process approved by the Federal Highway Administration for Washington State, hereby agrees to follow the procedure approved for the Washington State Department of Transportation as follows: Rules A. The City of Edmonds may elect to waive the requirement for an appraisal if the acquisition is simple and the compensation estimate indicated on the PFE (Project Funding Estimate) is $25,000.00 or less including cost-to cure items. B. The City of Edmonds must make the property owner(s) aware that an appraisal has not been done on the property and that one will be completed if they desire. C. Special care should be taken in the preparation of the waiver. As no review is mandated, the preparer needs to assure that the compensation is fair and that all the calculations are correct. Procedures A. An Administrative Offer Summary (AOS) is prepared using data from the PFE. B. The AOS is submitted to City Engineer for approval. C. The City Engineer signs the AOS authorizing a first offer to the property owner(s). APPROVED: City of Edmonds By: Mayor Real Estate Services City of Edmonds Washington State Department of Transportation Packet Page 227 of 393 LPA-001 RES Right-of-Way Procedures AGENCY City of Edmonds__ AGENCY NO. 0365 The City of Edmonds (“AGENCY”), desiring to acquire Real Property in accordance with the state Uniform Relocation Assistance and Real Property Acquisition Act (Ch. 8.26 RCW) and state regulations (Ch. 468-100 WAC) and applicable federal regulations hereby adopts the following procedures to implement the above statutes and Washington Administrative Code. The Development ServicesPublic Works Department (“Department”) of the AGENCY is responsible for the real property acquisition and relocation activities on projects administered by the AGENCY. To fulfill the above requirements the Development Services (“Department”) will acquire right-of-way in accordance with the policies set forth in the Washington State Department of Transportation Right of Way Manual (M 26-01) and Local Agency Guidelines manual (M 36-63). The AGENCY has the following expertise and personnel capabilities to accomplish these functions: 1. Include the following as they relate to the AGENCY’s request. a. List the functions below for which the agency has qualified staff and the responsible position. Attach a list of the individuals on the AGENCY staff who currently fill those positions and a brief summary of their qualifications. This list will need to be updated whenever staffing changes occur. An AGENCY will be approved to acquire based upon staff qualifications. (1) PROGRAM ADMINISTRATION Development Services Department – City Engineer, Assistant City Engineer Agency Position (2) APPRAISAL Consultant or WSDOT Real Estate Services Agency Position (3) APPRAISAL REVIEW Consultant or WSDOT Real Estate Services Agency Position (4) ACQUISITION Consultant or WSDOT Real Estate Services Agency Position (5) RELOCATION Consultant or WSDOT Real Estate Services Agency Position Packet Page 228 of 393 LPA-001 RES (6) PROPERTY MANAGEMENT Public Works Department – Public Works Director Agency Position b. Any functions for which the Agency does not have staff will be contracted for with WSDOT, another local agency with approved procedures or an outside contractor. An AGENCY that proposes to use outside contractors for any of the above functions will need to work closely with the WSDOT Local Agency Coordinator and Highways and Local Programs to ensure all requirements are met. When the AGENCY proposes to have a staff person negotiate who is not experienced in negotiation for FHWA funded projects the Coordinator must be given a reasonable opportunity to review all offers and supporting data before they are presented to the property owners. c. An AGENCY wishing to take advantage of an Appraisal Waiver process on properties valued up to $2510,000 or less should make their proposed waiver process a part of these procedures. The process outlined in LAG manual Appendix 25.146 has already been approved. The AGENCY may submit a process different than that shown and it will be reviewed and approved if it provides sufficient information to determine value. d. Attach a copy of the Agency’s administrative settlement policy showing the approving authority(s) and the process involved in making administrative settlements. 2. All projects shall be available for review by the FHWA and the state at any time and all project documents shall be retained and available for inspection during the plan development, right-of-way and construction stages and for a three year period following acceptance of the projects by WSDOT. 3. Approval of the AGENCY’s procedures by WSDOT may be rescinded at any time the Agency is found to no longer have qualified staff or is found to be in non-compliance with the regulations. The rescission may be applied to all or part of the functions approved. _____________________________________ _______________________ Mayor or Chariman Date WASHINGTON STATE DEPARTMENT OF TRANSPORTATION Approved By: ______________________________________ _______________________ Real Estate Services Date Packet Page 229 of 393 CITY OF EDMONDS 121 5TH AVENUE NORTH · EDMONDS, WA 98020 · 425-771-0220 · FAX 425-672-5750 Website: www.edmondswa.gov PUBLIC WORKS DEPARTMENT Engineering Division DAVE EARLING MAYOR Incorporated August 11, 1890 December 5, 2001August 6, 2012 City of Edmonds Right-of-Way Administrative Settlement Procedures for Federal-Aid Projects The City of Edmonds follows the Washington State Department of Transportation’s (WSDOT) Acquisition Procedures as set forth in the WSDOT Right-of-Way Manual and also detailed in the WSDOT Local Agency Guideline Manual. All appropriations for right-of-way acquisitions shall be approved by the City Council in the budget and in projects designated in the Transportation Improvement Plan (TIP), or as otherwise approved. If during acquisition, an agreement to purchase cannot be reached based upon just compensation given on the “Summary of Offer”, the following parameters shall serve as a guideline for an administrative settlement: A. The City Engineer may authorize acquisition agents to offer up to $12,000 in excess of the amount of just compensation shown on the “Summary of Offer”. This authority is not to be used unless the owner refuses the City’s initial offer. The first offer is always the amount of just compensation on the “Summary of Offer”. B. The Development ServicesPublic Works Director is authorized to offer for each parcel an administrative settlement from $10,000 up to a maximum of ten percent in excess of the amount of just compensation shown on the “Summary of Offer”, so long as such amount(s) have been budgeted or otherwise appropriated by the City Council. C. The Development ServicesPublic Works Director must submit proposed administrative settlements to City Council for concurrence, even though such proposed settlement is within the Development Services Director’s authority. The Development Services Director must submit proposed settlements to City Council that are in excess of the approval authorityies listed in A and B. D. All exercise of eminent domain authority shall be approved by the City Council. By: Gary HaakensonDavid O. Earling, Mayor Date Packet Page 230 of 393 Appendix 25.146 Appraisal Waiver Procedure WAIVER OF APPRAISAL The (Agency)City of Edmonds desiring to acquire Real Property according to 23 CFR, Part 635, Subpart C and State directives and desiring to take advantage of the $2510,000.00 appraisal waiver process approved by the Federal Highway Administration for Washington State, hereby agrees to follow the procedure approved for the Washington State Department of Transportation as follows: Rules A. The City of Edmonds (Agency) may elect to waive the requirement for an appraisal if the acquisition is simple and the compensation estimate indicated on the PFE (Project Funding Estimate) is $2510,000.00 or less including cost-to cure items. B. The Agency City of Edmonds must make the property owner(s) aware that an appraisal has not been done on the property and that one will be completed if they desire. C. Special care should be taken in the preparation of the waiver. As no review is mandated, the preparer needs to assure that the compensation is fair and that all the calculations are correct. Procedures A. An Administrative Offer Summary (AOS) is prepared using data from the PFE. B. The AOS is submitted to City Engineer for approval. C. The City Engineer signs the AOS authorizing a first offer to the property owner(s). APPROVED: City of Edmonds By: City EngineerMayor Director, Real Estate Services City of Edmonds Washington State Department of Transportation Formatted: Centered Formatted: Underline Packet Page 231 of 393    AM-5062     4. M.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Pam Lemcke Submitted By:Megan Cruz Department:Engineering Committee: Planning, Parks, Public Works Type: Action Information Subject Title Report on final construction costs for the Lift Station 2 Replacement Project and acceptance of project. Recommendation Accept project. Previous Council Action On October 23, 2007, Council authorized staff to advertise for construction bids. On April 19, 2011, Council authorized the Mayor to sign utility easement agreements. On June 14, 2011 staff presented the initial bid results to CS/DS committee with the recommendation to reject all bids. On June 21, 2011, Council approved Resolution 1251 rejecting all bids received on June 7, 2011 and authorizing staff to readvertise the project. On July 19, 2011, Council authorized award of contract to Trico Contracting, Inc. in the amount of $668,979. On August 14, 2012, the Planning, Parks and Public Works committee reviewed this item and recommended it be placed on the consent agenda for approval.  Narrative Lift Station 2 is located on private property adjacent to Shell Creek between Cary Road and Melody Lane. The lift station had been in operation for over 40 years and had exceeded its expected useful life since replacement parts are difficult, if not impossible, to obtain. The City built a new station and relocated the facility away from the creek to improve maintenance access and reduce the risk of a sewer overflow to Shell Creek. The City also constructed a new waterline within the same area to provide a looped water system and improve water service.  The project is complete and the final construction costs paid to Trico Contracting, Inc. was $606,064. The final contract amount was $62,915 below the original contract amount with Trico Contracting.  The construction costs were paid by the 412 Utility Fund. Packet Page 232 of 393 Form Review Inbox Reviewed By Date Engineering Robert English 08/16/2012 01:53 PM Public Works Kody McConnell 08/16/2012 03:48 PM City Clerk Linda Hynd 08/16/2012 04:09 PM Mayor Dave Earling 08/17/2012 08:47 AM Finalize for Agenda Linda Hynd 08/17/2012 09:00 AM Form Started By: Megan Cruz Started On: 08/15/2012 03:44 PM Final Approval Date: 08/17/2012  Packet Page 233 of 393    AM-5077     4. N.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Mike De Lilla Submitted By:Megan Cruz Department:Engineering Committee: Planning, Parks, Public Works Type: Action Information Subject Title Authorization for Mayor to sign Interlocal Agreement with Olympic View Water and Sewer District (OVWSD) to install sewerline and associated appurtenances as part of the 224th St. SW Sewer Replacement Project. Recommendation Authorize Mayor to sign Interlocal Agreement with OVWSD. Previous Council Action On August 14, 2012, the Planning, Parks and Public Works committee reviewed this item and recommended it be placed on the consent agenda for approval. Narrative The City was in the process of replacing a City owned existing sewerline extending from the intersection of 224th St. SW and 76th Ave W to the intersection of 224th St. SW and 78th Ave W. Historically, the pipe has experienced lack of capacity and needs to be replaced. The pipe conveys flows for which the majority are under the jurisdiction of Olympic View Water and Sewer District (OVWSD). During the research phase of the project, the City realized that the majority of the City owned sewer pipe system to be replaced in this project was actually located in Esperance, unincorporated Snohomish County. The City would therefore need to get a franchise agreement with the County in order to replace the system.  The City began coordinating the replacement of the system with OVWSD. After discussing the situation with OVWSD it was mutually agreed that OVWSD should have ownership of the pipe that is within Esperance and that they would pay for the replacement costs for the pipe within Esperance. In addition, the City would pay for the replacement costs that are within City limits. Given that the majority of the pipe replacement project is under the jurisdiction of OVWSD, it was agreed that the project then be lead by OVWSD. This project will be funded as part of the 2012 Sewer Replacement Program. The budget for this project is $120,000. Attachments Draft Interlocal Agrement Form Review Packet Page 234 of 393 Inbox Reviewed By Date Engineering Robert English 08/16/2012 03:44 PM Public Works Kody McConnell 08/16/2012 03:48 PM City Clerk Linda Hynd 08/16/2012 04:09 PM Mayor Dave Earling 08/17/2012 08:44 AM Finalize for Agenda Linda Hynd 08/17/2012 09:00 AM Form Started By: Megan Cruz Started On: 08/16/2012 03:32 PM Final Approval Date: 08/17/2012  Packet Page 235 of 393 Interlocal Agreement for 224th Street SW Sewerline Replacement Project Page 1 of 7 May 25, 2012 INTERLOCAL AGREEMENT CITY OF EDMONDS AND OLYMPIC VIEW WATER AND SEWER DISTRICT 224TH STREET SW SEWERLINE REPLACEMENT PROJECT THIS INTERLOCAL AGREEMENT (“Agreement”) is entered into by and between the City of Edmonds, Washington (the “City”) and Olympic View Water and Sewer District (the “District”) (collectively, the “Parties”) as of the date entered below. WHEREAS, Chapter 39.34 RCW authorizes two or more political subdivisions or units of local government of the State of Washington to cooperate on a basis of mutual advantage to provide for services and facilities; WHEREAS, the District is undertaking a capital improvement project known as the 224th Street SW Sewerline Replacement Project (the “Project”); WHEREAS, the District plans to [repair/upgrade/etc.]replace in present alignment or by parallel construction (hereafter “replacement”) certain water and sewersewer utilities within the project limits of the Project; WHEREAS, the City owns and operates water and sewersewer utilities located within the project limits of the Project that are in need of [repair/upgrade/etc.];replacement; WHEREAS, integrating the water and sewersewer utilities work needed by the City into the Project would be more expedient, less expensive, and less disruptive to the public than undertaking this work separately; WHEREAS, the Parties mutually desire to establish a formal arrangement under which the City will pay the District in exchange for the District incorporating the City’s water and sewersewer utility work into the Project; WHEREAS, the Parties desire to enter into this Agreement for the purpose of defining their respective rights, obligations, costs and liabilities regarding this undertaking; WHEREAS, the City Council of the City of Edmonds has taken appropriate action to approve the City’s entry into this Agreement; WHEREAS, the Board of Commissioners of the District has taken appropriate action to approve the District’s entry into this Agreement; NOW, THEREFORE, in consideration of the terms, conditions and covenants contained herein, the City and the District agree as follows: Packet Page 236 of 393 Interlocal Agreement for 224th Street SW Sewerline Replacement Project Page 2 of 7 May 25, 2012 TERMS Section 1. Purpose. The purpose of this Agreement is to establish a formal arrangement under which the City will pay the District to incorporate the water and sewersewer utilities [repairs/upgrades/etc.]replacement work into the Project contract documents and to construct said [repairs/upgrades/etc.]replacement work in conjunction with the District’s construction of the Project. The terms, conditions and covenants of this Agreement shall accordingly be interpreted to advance this purpose. This Agreement further seeks to allocate and define the Parties’ respective rights, obligations, costs and liabilities concerning the establishment, operation and maintenance of this undertaking. Section 2. Term. This Agreement shall be effective upon its execution by the Parties hereto. Unless terminated in accordance with Section 3, this Agreement shall remain effective until the sooner of the following events: (a) the City’s written acceptance of and payment for all District water and sewersewer utilities work provided to the City pursuant to this Agreement, or (b) December 31, 20123, when it shall expire automatically. The Parties may at their option renew this Agreement for a mutually agreed upon term by a writing signed by both Parties. Section 3. Termination. Either Party may terminate this Agreement with or without cause by providing the other Party with thirty (30) days’ written notice of its intent to terminate. Termination or expiration shall not alter the City’s payment obligations under Section 6 for services already rendered, as well as for the normal and reasonable costs incurred by the contractor in terminating and closing out the City’s portion of the work, and shall not alter the Parties’ respective obligations under Section 10 of this Agreement. Section 4. Obligations of the City. The City agrees to: A. Provide periodic payments to the District to reimburse the District for its outside costs of constructing the City’s water and sewersewer utilities [repair/upgrade/etc.]replacement work pursuant to Section 6 of this Agreement, and as follows: 1. Engineering/Design. The City shall reimburse the District for 100% of the District’s outside costs for engineering/design to incorporate the design prepared by the City’s engineering consultant for the City’s water and sewersewer utilities [repair/upgrade/etc.]replacement work into the construction plans, specifications and contract documents for the Project. The City share shall be twenty-two percent (22%) of total engineering design costs, with the totalThe actual cost to the City for this work isnot to exceed $____________.$4,906.00 without prior approval by adopted change order, which approval shall not be unreasonably withheld . 2. Construction. The City shall reimburse the District for 100% of the District’s actual outside costs for construction of the City’s water and sewersewer utilities work based upon the contractor’s bid, the actual quantities of materials installed, and the final actual costs of construction as follows: Packet Page 237 of 393 Interlocal Agreement for 224th Street SW Sewerline Replacement Project Page 3 of 7 May 25, 2012 a. [Add details on portions of work to be performed and anticipated costs to the City]The City sewer utilities portion of the Project will replace existing sewer main and appurtenances including and downstream of City Manhole 14-49 to a suitable location and point of connection to the City sewer utilities downstream of City Manhole 14-49D on 224th St SW. The City’s estimated share of the Project is twenty-two percent (22%) of construction cost, including applicable sales tax. The corresponding estimated City share of construction, including sales tax, is $46,000. b. [Add details…]. c. [Add details…]. 3. Construction Engineering and Management. The City shall reimburse the District for the City’s prorated share of the District’s actual outside costs for construction engineering and management of the Project. The City’s prorated share of the construction engineering and management costs shall be computed by multiplying the District’s actual outside costs for construction engineering and management times the percentage of the construction contract costs that the City’s utilities work is of the total construction contract costs for the Project, then multiplying the resultant times the same percentage share as in Section 4 above. The City share shall be twenty-two percent (22%) of the construction engineering and management, not to exceed $2,970.00 without prior approval by adopted change order, which approval shall not be unreasonably withheld. The estimated costs to the City for the outside construction engineering and management is approximately $___________$2,970. 3.4. B. Respond promptly to information requests submitted by the District or its agents regarding the water and sewersewer utilities [repair/upgrade/etc.]replacement work. C. Upon satisfactory completion of the City’s water and sewersewer utilities [repair/upgrade/etc.]replacement work, provide written acceptance of the work to the District. Section 5. Obligations of the District. The District agrees to: A. Incorporate the City’s water and sewersewer utilities [repair/upgrade/etc.]replacement work into the construction plans, specifications and contract documents for the Project. B. Assume responsibility for constructing the City’s water and sewersewer utilities [repair/upgrade/etc.]replacement work in accordance with the plans, specifications and contract documents, including but not limited to securing all necessary Formatted: Superscript Packet Page 238 of 393 Interlocal Agreement for 224th Street SW Sewerline Replacement Project Page 4 of 7 May 25, 2012 consultants, contractors and subcontractors. All construction contracts shall be procured through a formal competitive bidding process consistent with applicable State law. C. Submit to the City written invoices for payment in accordance with Section 6. Include copies of invoices or other documentation from consultants and/or contractors clearly indicating the City’s portion of the invoices. D. Assume lead agency status and responsibility for applying for and obtaining any and all regulatory permits necessary to complete the Project, including but not limited to right-of-way, SEPA and NEPA permits. E. Provide City personnel reasonable access to the Project’s construction area for purposes of inspecting and monitoring the progress of the work performed on the City’s water and sewersewer utilities [repair/upgrade/etc.]replacement work. F. Respond promptly to information requests submitted by the City or its agents regarding the Project. Section 6. Payment Schedule. The Parties agree to the following billing and payment schedule: A. The actual costs incurred by the District to incorporate the design prepared by the City’s engineering consultant for the City’s water and sewersewer utilities [repair/upgrade/etc.]replacement work into the construction plans, specifications and contract documents for the Project has been determined estimated to be $4,906.00_____________. The City shall tender payment to the District in the form of a check, money order or other certified funds, for actual costs incurred, for work approved by City, which approval shall not be unreasonably withheld in this amount within 30 days of after the invoice is submitted to the City.execution of this Agreement. B. For construction contract costs and for construction engineering and management costs incurred by the District for the City’s utilities work on the Project, the District shall within thirty (30) days submit an invoice to the City for the City’s share of said expenses for the City’s utilities work. Said invoice shall contain a reasonably detailed explanation of the methodology utilized by the District in determining the City’s share of each expense. To the extent reasonably possible, the District shall document and tabulate separately the actual quantities of work installed to clearl y identify the City’s portion of the Project construction costs for the City’s utilities work. C. Within thirty (30) days of receiving any invoice pursuant to subsection 6.B, the City shall tender payment to the District in the form of a check, money order or other certified funds for the invoiced amount for work approved by the City, which approval shall not be unreasonably withheld.. Packet Page 239 of 393 Interlocal Agreement for 224th Street SW Sewerline Replacement Project Page 5 of 7 May 25, 2012 D. In the event that the Parties disagree regarding the City’s share of any expense incurred by the District regarding the Project, the Parties may agree to submit the question for resolution by a mediator or arbitrator acceptable to both Parties. Section 7. City Reserves Right to Accomplish Work. If the contractor’s bid for construction for the City’s water and sewersewer utilities [repair/upgrade/etc.]replacement work is unacceptable to the City for any reason, the City reserves the right to perform the City’s water and sewersewer utilities [repair/upgrade/etc.]replacement work through means separate from the District’s construction contract, PROVIDED that by so doing, the City’s work does not in any way delay, disrupt or otherwise negatively impact the District’s contract work for the Project or increase the costs to the District therefore. If the City’s accomplishment of its utilities work separately does delay, disrupt or otherwise negatively impact the District’s contract work for the Project or increase the cost to the District therefore, the City shall reimburse the District for all such increased costs incurred by the District. Section 8. Ownership and Disposition of Property. The City’s water and sewersewer utilities [repair/upgrade/etc.]replacement work done pursuant to this Agreement shall become and remain the exclusive property of the City upon completion. All other work constructed under the Project shall become and remain the exclusive property of the District upon completion. Section 9. Administration; No Separate Entity Created. The General Manager for the District shall serve as the administrator of this Agreement. No separate legal entity is formed by this Agreement. Section 10. Release, Indemnification and Hold Harmless Agreement. Each Party to this Agreement shall be responsible for its own negligent and/or wrongful acts or omissions, and those of its own agents, employees, representatives, contractors or subcontractors, to the fullest extent required by the laws of the State of Washington. Each Party agrees to protect, indemnify and save the other Party harmless from and against any and all such liability for injury or damage to the other Party or the other Party’s property, and also from and against all claims, demands and causes of action of every kind and character arising directly or indirectly, or in any way incident to, in connection with, or arising out of work performed under the terms hereof, caused by its own fault or that of its agents, employees, representatives, contract ors or subcontractors. The District specifically promises to indemnify the City against claims or suits brought under Title 51 RCW by its own employees, contractors or subcontractors, and waives any immunity that the District may have under that title with respect to, but only to, the limited extent necessary to indemnify the City. The District shall also indemnify and hold the City harmless from any wage, overtime or benefit claim of any District employee, agent, representative, contractor or subcontractor performing services under this Agreement. The District further agrees to fully indemnify the City from and against any and all costs of defending any such claim or demand to the end that the City is held harmless therefrom. Section 11. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Washington. Any action arising out of this Agreement shall be brought in Snohomish County Superior Court. Packet Page 240 of 393 Interlocal Agreement for 224th Street SW Sewerline Replacement Project Page 6 of 7 May 25, 2012 Section 12. No Employment Relationship Created. The Parties agree that nothing in this Agreement shall be construed to create an employment relationship between the City and any employee, agent, representative or contractor of the District, or between the District and any employee, agent, representative or contractor of the City. Section 13. No Third Party Rights. This Agreement is intended for the sole and exclusive benefit of the Parties hereto and no third party rights are created by this Agreement. Section 14. Notices. Notices to the District shall be sent to the following address: Olympic View Water and Sewer District General Manager 23725 Edmonds Way Edmonds, WA 98026 Notices to the City shall be sent to the following address: City of Edmonds City Engineer 121 Fifth Avenue N Edmonds, WA 98020 Section 15. Duty to File Agreement with County Auditor. The District shall, after this Agreement is executed by both Parties, file this Agreement with the Snohomish County Auditor. Section 16. Integration. This document constitutes the entire embodiment of the Agreement between the Parties and, unless modified in writing by an amendment to this Interlocal Agreement signed by the Parties hereto, shall be implemented as described above. Section 17. Non-Waiver. Waiver by any Party of any of the provisions contained with in this Agreement, including but not limited to any performance deadline, shall not be construed as a waiver of any other provision. OLYMPIC VIEW WATER & SEWER DISTRICT By:_____________________________ [NAME],Lynne Danielson, General Manager Date:_____________________________ Packet Page 241 of 393 Interlocal Agreement for 224th Street SW Sewerline Replacement Project Page 7 of 7 May 25, 2012 STATE OF WASHINGTON ) )ss COUNTY OF SNOHOMISH ) On this day, personally appeared before me , the General Manager of OLYMPIC VIEW WATER AND SEWER DISTRICT and stated that he is authorized to sign this instrument on behalf of said company for the uses and purposes therein mentioned. SUBSCRIBED AND SWORN TO before me this _____ day of __________, 2012. NOTARY PUBLIC Print Name My commission expires: CITY OF EDMONDS By:____________________________ David O. Earling, Mayor Date:_____________________________ ATTEST: _____________________________ Sandra S. Chase, City Clerk APPROVED AS TO FORM: _____________________________ Office of the City Attorney Packet Page 242 of 393    AM-5066     4. O.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted By:Pamela Randolph Department:Wastewater Treatment Plant Committee: Finance Type: Action Information Subject Title Report on bids opened July 31, 2012 for the A-Basin Upgrade Project and award of contract to Moon Construction Co. Inc. ($174,530.96 including sales tax). Recommendation Council to award contract to Moon Construction Co. Inc for $174,530.  This item was approved by the Parks Planning and Public Works Committee on Aug 14, 2012. Previous Council Action On March 22, 2012 Council Authorized a Request for Bids. Narrative Using the Small Works contract procedures, on July 31 2012, the City received 2 bids for the A- Basin Upgrade Project. The bids ranged from a low of $113,223 to a high of $175,530.96, including sales tax. The bid tabulation summary is attached as Exhibit 1. Gary Harper Construction submitted the low responsive bid in the amount of $113,223.00, including sales tax. On August 9, 2012, Gary Harper Construction withdrew their bid. Moon Construction Co. Inc. is now the low responsive bid in the amount of $174,530.96, including tax. The engineer’s estimate was $165,345.00.  This project is one of several energy saving projects that the Treatment plant is performing this year. This project has a Snohomish County Public Utility District incentive of up to $50,000. This project will also improve our process and allow us to make a cleaner effluent. The project costs are being funded by the 414 Wastewater Capital Fund. Attachments A Basin Bid Tabulation Form Review Inbox Reviewed By Date City Clerk Sandy Chase 08/15/2012 04:01 PM Mayor Dave Earling 08/16/2012 08:39 AM Finalize for Agenda Linda Hynd 08/16/2012 12:19 PM Form Started By: Pamela Randolph Started On: 08/15/2012 03:54 PM Packet Page 243 of 393 Final Approval Date: 08/16/2012  Packet Page 244 of 393 Packet Page 245 of 393    AM-5065     4. P.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted By:Pamela Randolph Department:Wastewater Treatment Plant Committee: Finance Type: Action Information Subject Title Report on bids opened August 2, 2012 for the Building Roof Replacement Project and award of contract to Kruger Sheet Metal ($344,925 including sales tax). Recommendation Council to award contract to Kruger Sheet Metal in the amount of $344,925. This item was approved by the Parks Planning and Public Works Committee on Aug 14, 2012. Previous Council Action On March 22, 2012 Council Authorized a Request for Bids. Narrative Using the Advertised Bid contract procedures, on August 2, 2012, the City received 7 bids for the Building Roof Replacement Project. The bids ranged from a low of $344,925 to a high of $601,155, including sales tax. The bid tabulation summary is attached as Exhibit 1. Kruger Sheet Metal submitted the low responsive bid in the amount of $344,925, including sales tax. The engineer’s estimate was $362,007. This project will replace the roofs on three of the plants processing building. The existing roofs are leaking. The project costs are being funded by the 414 Wastewater Capital Fund. Attachments Bid Tabulation Form Review Inbox Reviewed By Date City Clerk Sandy Chase 08/15/2012 04:01 PM Mayor Dave Earling 08/16/2012 08:40 AM Finalize for Agenda Linda Hynd 08/16/2012 12:19 PM Form Started By: Pamela Randolph Started On: 08/15/2012 03:53 PM Final Approval Date: 08/16/2012  Packet Page 246 of 393 NOTE: Bidder agrees to perform all work described in the specifications and as shown on the plans for the following unit prices. In cases of discrepancies, the unit prices govern. Unit prices for all items, all extensions and total amount of bid shall be in figures only Item Qty Unit Description Unit Price Total Price 1 1 LS Mobilization/Demobilization 4,000.00$ 4,000.00$ 2 1 LS Modified Membrane Roof for Bldgs 100,300 and 600 $ 320,000.00 321,500.00$ 3 1 LS Contract Closeout 5,100.00$ 5,100.00$ Subtotal 330,600.00$ 9.5% Tax 31,407.00$ TOTAL 362,007.00$ Item Qty Unit Description Unit Price Total Price 1 1 LS Mobilization/Demobilization 2,000.00$ 2,000.00$ 2 1 LS Modified Membrane Roof for Bldgs 100,300 and 600 $ 310,000.00 $ 310,000.00 3 1 LS Contract Closeout 3,000.00$ 3,000.00$ Subtotal 315,000.00$ 9.5% Tax 29,925.00$ TOTAL 344,925.00$ Item Qty Unit Description Unit Price Total Price 1 1 LS Mobilization/Demobilization 20,463.00$ 20,463.00$ 2 1 LS Modified Membrane Roof for Bldgs 100,300 and 600 $ 377,679.00 $ 377,679.00 3 1 LS Contract Closeout 16,370.00$ 16,370.00$ Subtotal 414,512.00$ 9.5% Tax 39,378.64$ TOTAL 453,890.64$ Kruger Sheet Metal Engineers Estimate Wright Roofing Edmonds WWTP Reroofing Project c383 Packet Page 247 of 393 Item Qty Unit Description Unit Price Total Price 1 1 LS Mobilization/Demobilization 6,270.00$ 6,270.00$ 2 1 LS Modified Membrane Roof for Bldgs 100,300 and 600 $ 416,430.00 $ 416,430.00 3 1 LS Contract Closeout 6,270.00$ 6,270.00$ Subtotal 428,970.00$ 9.5% Tax 40,752.15$ TOTAL 469,722.15$ Item Qty Unit Description Unit Price Total Price 1 1 LS Mobilization/Demobilization 6,850.00$ 6,850.00$ 2 1 LS Modified Membrane Roof for Bldgs 100,300 and 600 $ 428,018.00 $ 428,018.00 3 1 LS Contract Closeout 1,209.00$ 1,209.00$ Subtotal 436,077.00$ 9.5% Tax 41,427.32$ TOTAL 477,504.32$ Item Qty Unit Description Unit Price Total Price 1 1 LS Mobilization/Demobilization 6,240.00$ 6,240.00$ 2 1 LS Modified Membrane Roof for Bldgs 100,300 and 600 $ 469,753.00 $ 469,753.00 3 1 LS Contract Closeout 2,600.00$ 2,600.00$ Subtotal 478,593.00$ 9.5% Tax 45,466.34$ TOTAL 524,059.34$ Item Qty Unit Description Unit Price Total Price 1 1 LS Mobilization/Demobilization 5,300.00$ 5,300.00$ 2 1 LS Modified Membrane Roof for Bldgs 100,300 and 600 $ 495,754.00 $ 495,754.00 3 1 LS Contract Closeout 2,650.00$ 2,650.00$ Subtotal 503,704.00$ 9.5% Tax 47,851.88$ TOTAL 551,555.88$ Tecta America Lloyd a. Lynch Inc. Meyer Brothers Roofing Snyder Roofing Packet Page 248 of 393 Item Qty Unit Description Unit Price Total Price 1 1 LS Mobilization/Demobilization 20,000.00$ 20,000.00$ 2 1 LS Modified Membrane Roof for Bldgs 100,300 and 600 $ 524,000.00 $ 524,000.00 3 1 LS Contract Closeout 5,000.00$ 5,000.00$ Subtotal 549,000.00$ 9.5% Tax 52,155.00$ TOTAL 601,155.00$ Scholten Roofing Packet Page 249 of 393    AM-5067     4. Q.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Ed Sibrel Submitted By:Megan Cruz Department:Engineering Committee: Planning, Parks, Public Works Type: Action Information Subject Title Authorization to award a construction contract to Northshore Paving, Inc. in the amount of $140,251.23 for the 2012 Waterline Overlay Project. Recommendation Award contract. Previous Council Action On April 17, 2012, City Council authorized the Request for Bids for construction services for the 2012 Waterline Overlay Project. On August 14, 2012, the Planning, Parks and Public Works committee reviewed this item and recommended it be placed on the consent agenda for approval.  Narrative On August 16, 2012, the City received one quotation in the amount of $140,251 from Northshore Paving, Inc. for the 2012 Waterline Overlay Contract.  The Engineer's Estimate was $160,063.   The quotations were solicited through the small works roster process since the engineer's estimate was below $300,000.   The 2012 Waterline Overlay project is related to the newly-completed 2010 and 2011 Waterline Replacement Projects, wherein certain roadways, in deteriorating condition will not be sufficiently rehabilitated by usual trench-patching methods. The work is comprised of the following residential streets: Edmonds Street from 9th Ave North to Hummingbird Park; 10th Place North from Edmonds Street to the road end; Skyline Drive, and 192nd Street SW from 88th Avenue W west to the road end, together with a spot grind and patch at the intersection of West Dayton Street and the entrance to Harbor Square.  Originally, a one-lane 2” depth grind and overlay of 5th Avenue South from Elm Way to Walnut Street was also part of the project, but a larger scale full-width overlay became possible when Federal monies were secured, so that street will be addressed as a separate project.  Below is a summary of the estimated construction budget and the costs will be paid by the City's 412 Water Utility Fund:    Estimated Construction Budget Construction Contract $140,251 Engineering & Construction Management $18,000 Packet Page 250 of 393 Material Services $14,000 Total Budget $28,000 Attachments Attachment 1 - Project Site Map Form Review Inbox Reviewed By Date Engineering Robert English 08/16/2012 04:21 PM Planning Department Megan Cruz 08/16/2012 04:44 PM Public Works Phil Williams 08/16/2012 04:45 PM City Clerk Linda Hynd 08/16/2012 05:00 PM Mayor Dave Earling 08/17/2012 08:46 AM Finalize for Agenda Linda Hynd 08/17/2012 09:00 AM Form Started By: Megan Cruz Started On: 08/15/2012 04:05 PM Final Approval Date: 08/17/2012  Packet Page 251 of 393 Packet Page 252 of 393    AM-5069     4. R.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Jeanie McConnell Submitted By:Megan Cruz Department:Engineering Committee: Planning, Parks, Public Works Type: Action Information Subject Title Authorization for Mayor to approve acceptance and recording of Public Pedestrian Access Easements. Recommendation Authorize Mayor to approve acceptance and recording of Public Pedestrian Access Easements.  Previous Council Action On August 14, 2012, the Planning, Parks and Public Works committee reviewed this item and recommended it be placed on the consent agenda for approval.    Narrative The City of Edmonds approved civil construction plans for the Edmonds Way Apartments located at 23020 & 23014 Edmonds Way on August 2, 2011. Construction for the development was completed and accepted by Engineering on July 13, 2012. As a condition of approval the subject development was required to construct sidewalk improvements along Edmonds Way and 232nd property frontages. In order to establish proper sidewalk alignment along 232nd St SW and maintain clearances around existing utilities on Edmonds Way, a portion of the proposed sidewalk was located on private property and therefore a public pedestrian easement is required. Attachments Attachment 1 - Public Pedestrian Access Easement Form Review Inbox Reviewed By Date Engineering Robert English 08/16/2012 10:46 AM Public Works Phil Williams 08/16/2012 12:04 PM City Clerk Linda Hynd 08/16/2012 12:14 PM Mayor Dave Earling 08/16/2012 12:28 PM Finalize for Agenda Linda Hynd 08/16/2012 12:53 PM Form Started By: Megan Cruz Started On: 08/15/2012 04:44 PM Final Approval Date: 08/16/2012  Packet Page 253 of 393 P a c k e t P a g e 2 5 4 o f 3 9 3 P a c k e t P a g e 2 5 5 o f 3 9 3 P a c k e t P a g e 2 5 6 o f 3 9 3 P a c k e t P a g e 2 5 7 o f 3 9 3 P a c k e t P a g e 2 5 8 o f 3 9 3    AM-5070     4. S.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Rob English Submitted By:Robert English Department:Engineering Committee: Planning, Parks, Public Works Type: Action Information Subject Title Authorization for Mayor to sign Supplemental Agreement No. 2 with Parametrix, Inc. for the Main St. Decorative Lighting and Sidewalk Enhancements Project. Recommendation Authorize Mayor to sign Supplemental Agreement No. 2. Previous Council Action On May 22, 2012, the City Council approved Supplemental Agreement No. 1 with Parametrix for design services on the Main Street (5th Ave - 6th Ave) Decorative Lighting and Sidewalk Enhancements Project. On December 6, 2011, the City Council approved a Professional Services Agreement with Parametrix for design services on the Main Street (5th Ave - 6th Ave) Decorative Lighting and Sidewalk Enhancements Project.  On November 7, 2011, the CSDS Committee reviewed and recommended approval of a Professional Services Agreement with Parametrix for design services on the Main Street (5th Ave - 6th Ave) Decorative Lighting and Sidewalk Enhancements Project. On August 14, 2012, the Planning, Parks and Public Works committee reviewed this item and recommended it be placed on the consent agenda for approval.  Narrative The proposed Supplemental Agreement No. 2 will provide professional engineering services during construction of the Main Street improvements between 5th and 6th Avenues.   The scope of work includes reviewing contractor submittals, responding to requests for information, reviewing contractor work plans, site meetings and providing design assistance on contract change orders.  The total cost of the Supplemental Agreement is $24,140 and the current project funds will be used to pay for these services.  Background: In 2010, the City was successful in securing a $725,000 grant to add historic decorative street lighting and replace sidewalks, curb and gutter on Main Street between 5th and 6th Avenues. The grant is funded by the federal transportation enhancement program and a local match is not required. The project will install new light poles and decorative poles for planter baskets and artist made elements. The new sidewalk will improve pedestrian safety by replacing sidewalk that has been displaced by existing street trees along the corridor. The existing street trees will be removed due to the damage they are causing to the surrounding Packet Page 259 of 393 infrastructure and replaced with new street trees that are better suited for this location.  In addition to the federal grant, the City received a direct appropriation of $500,000 from the State Legislature in April 2012 to add more improvements and enhance the project. These improvements include street furniture, a mid-block pedestrian crossing, relocation of overhead power to an adjacent alley, street pavement reconstruction and use of low impact stormwater devices and materials.  In December 2011, the City executed a professional services agreement with Parametrix to complete the final design and contract documents. The scope of services included preparing the final design plans, contract specifications, cost estimates, geotechnical report, environmental documents and acquisition of temporary construction easements. The consultant's fee for the agreement was $188,957 with a management reserve of $15,000 for unexpected design issues and changes.  During the design phase, additional work was required to design and detail a screen wall in front of the vacant lot next to Starbuck's, develop and evaluate three street light configurations, perform additional coordination for streetscape elements and design and detail foundations for the street lights and flower poles. The $15,000 management reserve was used to pay for these services. Attachments Parametrix Supplemental Agrmt. #2 Form Review Inbox Reviewed By Date Engineering Robert English 08/16/2012 10:59 AM Public Works Phil Williams 08/16/2012 12:04 PM City Clerk Linda Hynd 08/16/2012 12:14 PM Mayor Dave Earling 08/16/2012 12:26 PM Finalize for Agenda Linda Hynd 08/16/2012 12:53 PM Form Started By: Megan Cruz Started On: 08/15/2012 04:57 PM Final Approval Date: 08/16/2012  Packet Page 260 of 393 P a c k e t P a g e 2 6 1 o f 3 9 3 P a c k e t P a g e 2 6 2 o f 3 9 3 P a c k e t P a g e 2 6 3 o f 3 9 3 P a c k e t P a g e 2 6 4 o f 3 9 3 P a c k e t P a g e 2 6 5 o f 3 9 3 P a c k e t P a g e 2 6 6 o f 3 9 3 P a c k e t P a g e 2 6 7 o f 3 9 3 P a c k e t P a g e 2 6 8 o f 3 9 3 P a c k e t P a g e 2 6 9 o f 3 9 3 P a c k e t P a g e 2 7 0 o f 3 9 3 P a c k e t P a g e 2 7 1 o f 3 9 3    AM-5071     4. T.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Pam Lemcke Submitted By:Megan Cruz Department:Engineering Committee: Planning, Parks, Public Works Type: Action Information Subject Title Report on bids opened August 9, 2012 for the Lift Station Rehabilitation Project and award of contract to Razz Construction in the amount of $3,872,095.20. Recommendation Award contract. Previous Council Action On November 3, 2008, Council authorized Staff to advertise a Request for Qualifications (RFQ) for design services for the Sewer Lift Stations Rehabilitation Project. On July 21, 2009 Council authorized the Mayor to sign a professional services agreement with CHS Engineers, LLC for design services for the Sewer Lift Stations Rehabilitation Project. On May 17, 2011 Council authorized staff to advertise for construction bids for the Sewer Lift Station Rehabilitation Project. On November 15, 2011, Council approved Addendum No. 1 to the Professional Services Agreement with CHS Engineers, LLC. On June 19, 2012 Council authorized for Mayor to sign Addendum No. 2 to the Professional Services Agreement with CHS Engineers, LLC. On August 14, 2012, the Planning, Parks and Public Works committee reviewed this item and recommended it be placed on the consent agenda for approval.  Narrative On August 9, 2012, the City received four bids for the Lift Station Rehabilitation Project.  The low bidder is Razz Construction with a bid of $3,872,095 to construct the project.  The Engineer’s Estimate was $3,446,337.  The bid tabulation summary is attached as Exhibit 1.  The 2006 Sanitary Sewer Comprehensive Plan identified the need to refurbish and upgrade nine existing sewer lift (pump) stations constructed in the 1960's and 1970's as part of the City’s 6-year Capital Improvement Program. The existing mechanical and electrical equipment that operate these stations are obsolete and need to be replaced to prevent pump failures, reduce the risk of sewage overflows and Packet Page 272 of 393 reduce maintenance costs. The piping and ventilation will also be upgraded to improve the operation of the lift stations.  Below is a summary of the estimated construction budget:    Estimated Construction Budget Construction Contract $3,872,095 Engineering & Construction Management $540,000 Testing Lab Services $45,000 Contingency 10%$387,000 Total Budget $4,844,095 The costs will be paid by the City's 412 Utility Fund. Construction is anticipated to begin in fall 2012 and continue through 2013.  Attachments Attachment 1 - Bid Tab Attachment 2 - Site Map Form Review Inbox Reviewed By Date Engineering Robert English 08/16/2012 03:48 PM Public Works Kody McConnell 08/16/2012 03:49 PM City Clerk Linda Hynd 08/16/2012 04:09 PM Mayor Dave Earling 08/17/2012 08:45 AM Finalize for Agenda Linda Hynd 08/17/2012 09:00 AM Form Started By: Megan Cruz Started On: 08/15/2012 04:58 PM Final Approval Date: 08/17/2012  Packet Page 273 of 393 8/9/2012 4 Bids Received Exhibit 1 BI #Item Description Quantity Unit Unit Price Total Price Unit Price Total Price Unit Price Total Price Unit Price Total Price Unit Price Total Price 1 Mobilization 1 LS $147,000 $147,000 $424,000 $424,000 $119,500 $119,500 $296,000 $296,000 $150,000 $150,000 2 Shoring/Trench Safety 1 LS $10,000 $10,000 $29,000 $29,000 $13,000 $13,000 $500 $500 $5,000 $5,000 3 Traffic Control 1 LS $15,000 $15,000 $30,000 $30,000 $51,000 $51,000 $21,000 $21,000 $10,000 $10,000 4 Lift Station No. 3 Rehabilitation, Complete, Tested and Ready for Service 1 LS $315,040 $315,040 $345,000 $345,000 $408,100 $408,100 $400,000 $400,000 $525,000 $525,000 5 Lift Station No. 4 Rehabilitation, Complete, Tested and Ready for Service 1 LS $384,498 $384,498 $535,000 $535,000 $543,100 $543,100 $550,000 $550,000 $575,000 $575,000 6 Lift Station No. 5 Rehabilitation, Complete, Tested and Ready for Service 1 LS $171,054 $171,054 $191,000 $191,000 $261,100 $261,100 $250,000 $250,000 $325,000 $325,000 7 Lift Station No. 9 Rehabilitation, Complete, Tested and Ready for Service 1 LS $349,477 $349,477 $360,000 $360,000 $456,400 $456,400 $450,000 $450,000 $507,000 $507,000 8 Lift Station No. 10 Rehabilitation, Complete, Tested and Ready for Service 1 LS $408,257 $408,257 $445,000 $445,000 $505,800 $505,800 $520,000 $520,000 $542,000 $542,000 9 Lift Station No. 11 Rehabilitation, Complete, Tested and Ready for Service 1 LS $176,243 $176,243 $225,000 $225,000 $272,400 $272,400 $310,000 $310,000 $319,000 $319,000 10 Lift Station No. 12 Rehabilitation, Complete, Tested and Ready for Service 1 LS $286,564 $286,564 $316,000 $316,000 $413,100 $413,100 $435,000 $435,000 $472,000 $472,000 11 Lift Station No. 14 Rehabilitation, Complete, Tested and Ready for Service 1 LS $183,263 $183,263 $203,000 $203,000 $234,800 $234,800 $275,000 $275,000 $280,000 $280,000 12 Lift Station No. 15 Rehabilitation, Complete, Tested and Ready for Service 1 LS $160,604 $160,604 $195,000 $195,000 $259,200 $259,200 $270,000 $270,000 $280,000 $280,000 13 Force Main Replacement by Sliplining 755 LF $160 $120,800 $40 $30,200 $93 $70,026 $50 $37,750 $55 $41,525 14 Force Main Replacement by Pipebursting 1,469 LF $160 $235,040 $65 $95,485 $39 $56,924 $106 $155,714 $150 $220,350 15 Force Main Replacement by Open Cut Trench 315 LF $200 $63,000 $77 $24,255 $87 $27,405 $73 $22,995 $75 $23,625 16 Water Main Replacement by Open Cut Trench 256 LF $250 $64,000 $120 $30,720 $131 $33,536 $160 $40,960 $275 $70,400 17 Imported Backfill Material 1,900 Ton $25 $47,500 $25 $47,500 $17 $31,825 $26 $49,400 $24 $45,600 18 Record Drawing Submittal 1 LS $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Subtotal $3,147,340.00 $3,536,160.00 $3,767,216.00 $4,094,319.00 $4,401,500.00 9.5% Tax $298,997.30 $335,935.20 $357,885.52 $388,960.31 $418,142.50 Total $3,446,337.30 $3,872,095.20 $4,125,101.52 $4,483,279.31 $4,819,642.50 McClure BID TAB - Lift Station Rehabiltation - E9GA/c304 Engineers Estimate RAZZ Construction I and E Construction Derian Packet Page 274 of 393 P a c k e t P a g e 2 7 5 o f 3 9 3    AM-5073     4. U.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted For:Pam Lemcke Submitted By:Megan Cruz Department:Engineering Committee: Planning, Parks, Public Works Type: Action Information Subject Title Authorization to approve easements for the Sewer Lift Station Rehabilitation Project. Recommendation Authorize staff to approve easements. Previous Council Action On August 14, 2012, the Planning, Parks and Public Works committee reviewed this item and recommended it be placed on the consent agenda for approval.  Narrative The Sewer Lift Station Rehabilitation Project requires 3 temporary construction easements for Lift Station #4, 5 and 10. Lift Station #4 and # 10 are located on Talbot Road north of Olympic View Drive and Lift Station #5 is on private property off of 3rd Ave near City Park.  The City has received signed easements from the property owners.  Attachment 1 is the signed Temporary Construction Easements. Attachments Attachment 1 - Temp Construction Easements Attachment 2 - Site Map Form Review Inbox Reviewed By Date Engineering Robert English 08/16/2012 11:19 AM Public Works Phil Williams 08/16/2012 12:04 PM City Clerk Linda Hynd 08/16/2012 12:14 PM Mayor Dave Earling 08/16/2012 12:25 PM Finalize for Agenda Linda Hynd 08/16/2012 12:53 PM Form Started By: Megan Cruz Started On: 08/15/2012 05:13 PM Final Approval Date: 08/16/2012  Packet Page 276 of 393 P a c k e t P a g e 2 7 7 o f 3 9 3 P a c k e t P a g e 2 7 8 o f 3 9 3 P a c k e t P a g e 2 7 9 o f 3 9 3 P a c k e t P a g e 2 8 0 o f 3 9 3 P a c k e t P a g e 2 8 1 o f 3 9 3 P a c k e t P a g e 2 8 2 o f 3 9 3    AM-5039     4. V.              City Council Meeting Meeting Date:08/21/2012 Time:Consent   Submitted By:James Lawless Department:Police Department Committee: Public Safety, Personnel Type: Action Information Subject Title Renew Domestic Violence Coordinator Position with the City of Mill Creek. Recommendation Approval by full Council and forward to the Mayor for signature. Previous Council Action Review by Public Safety/Personnel Committee on 8/14/12 with recommendation to forward to full Council for approval via consent agenda. Narrative Since January 2007, the city of Edmonds and the City of Mill Creek by interlocal agreement have shared services of a Domestic Violence Coordinator. The incumbent is a part-time City of Edmonds employee who has spent approximately 2/3 time here at Edmonds, with the balance at Mill Creek. This allocation between Mill Creek and Edmonds was based on the previous interlocal agreement which expires July 24, 2012. Representative duties are to provide coordination of domestic violence related cases between the victim, police department, prosecuting attorney’s office and courts of jurisdiction. Additional duties include community education on domestic violence issues and training of department personnel relative to domestic violence. Work is performed in a support position for and within the police department in a civilian capacity. Our experience is that a Domestic Violence Coordinator can provide an effective level of service to DV victims, and to the overall prosecution effort, that is difficult to match absent such a designated person. The employee would be supervised by the Edmonds Police Department under Support Services. The police department is requesting authorization to continue the agreement with Mill Creek as both agencies believe this is in the best interest of our citizens. The position will be covered under the terms of the current Edmonds Police Officers’ Association contract. Funding for this position is already provided for in the current General Fund Administrative Services. The ILA has been reviewed by the City Attorney and is approved as to form. Attachments Edmonds/Mill Creek DV Coordinator ILA Form Review Inbox Reviewed By Date City Clerk Sandy Chase 08/15/2012 09:02 AM Packet Page 283 of 393 Mayor Dave Earling 08/15/2012 10:15 AM Finalize for Agenda Sandy Chase 08/15/2012 11:33 AM Form Started By: James Lawless Started On: 08/15/2012 08:23 AM Final Approval Date: 08/15/2012  Packet Page 284 of 393 1 INTERLOCAL AGREEMENT BETWEEN THE CITY OF EDMONDS, WASHINGTON AND THE CITY OF MILL CREEK, WASHINGTON FOR A DOMESTIC VIOLENCE COORDINATOR THIS INTERLOCAL AGREEMENT (“Agreement”) is made and entered into on this 21st day of August, 2012, by and between the CITY OF EDMONDS, a Washington municipal corporation (hereinafter referred to as “Edmonds”) and the CITY OF MILL CREEK, Washington municipal corporation (hereinafter referred to as “Mill Creek”), each party having been duly organized and existing under the laws of the State of Washington. RECITALS WHEREAS, Edmonds and Mill Creek each require services of a Domestic Violence Coordinator to assist the Prosecutor and victims of domestic violence in each City; WHEREAS, Edmonds is authorized by law to hire and retain an employee to provide domestic violence coordination services to assist victims and the City Prosecutor in domestic violence cases for the Municipal Court; WHEREAS, Edmonds continues to require the domestic violence Coordinator services for the benefit of Edmonds. WHEREAS, Edmonds is amenable to allowing Mill Creek to compensate Edmonds in exchange for receiving services that will be performed by the Edmonds Domestic Violence Coordinator under the employment, direction, and supervision of Edmonds; WHEREAS, RCW 39.34.080 and other Washington laws authorize any public agency to contract with another agency to perform services and activities that each such public agency is authorized by law to perform; WHEREAS, Edmonds and Mill Creek have considered the costs for such services and skills required, and determined it is in each of their best interest to enter into this agreement as authorized and provided for by RCW 39.34.080 and other Washington law to share such services in cooperation with each other; and WHEREAS, this interlocal Agreement was authorized by the Edmonds City Council on August 21, 2012 and the Mill Creek City Council on _______________, 2012. NOW THEREFORE, in consideration of the above and foregoing recitals, the payments to be made, the mutual promises and covenants herein contained, and for other good and valuable considerations, the parties hereto agree as follows: Packet Page 285 of 393 2 1. Purpose: This agreement is for Edmonds to provide the following services to Mill Creek (and as itemized further in Attachment A): a. The Domestic Violence Coordinator (hereinafter referred to as “DVC”) is employed by Edmonds at all times, and is under the direction, supervision, and control of Edmonds. b. In return for compensation, Edmonds shall direct the DVC to provide Mill Creek with services for approximately 33% of the total work time by the DVC at mutually agreed upon times and days. Both parties accept minor variation to the 66% of the total time to Edmonds or 33% of the total time to Mill Creek. It is considered impractical to insure precise distribution due to the variation of workload requirements on any particular day, and distribution of holidays, sick, leave, and vacation days. c. As the employer, Edmonds shall provide an office and all supplies necessary for the DVC’s work. At the convenience of Mill Creek, Mill Creek may also provide an alternative workspace in Mill Creek. d. The DVC will work under Edmonds’ rules and directions. In the event that there is conflict between Edmonds’ personnel activities and rules, and Mill Creek’s, then Edmonds’ will prevail. 2. Duration: The term of the Agreement shall be from August 21, 2012 through December 31, 2017. The Agreement may be renewed for successive periods of five years, upon approval by each respective City Council at the time of renewal. 3. Contacts: Notice regarding the Agreement terms, conditions, rates, or other communications shall be addressed to: City of Edmonds Assistant Chief of Police 250 5th Avenue North Edmonds, WA 98020 City of Mill Creek Chief of Police 15728 Main Street Mill Creek, WA 98012 4. Compensation from Mill Creek a. For 2012, Mill Creek shall pay Edmonds an amount not to exceed $10,920.68, in monthly installments of $910.06 as billed to Mill Creek by Edmonds, as its share of the DVC yearly salary and benefits. Should the DVC position be vacant for a portion of the month, Edmonds shall pro-rate the invoice accordingly. Mill Creek understands that the DVC position is represented by Edmonds Police Officers Association, Staff Support Group. Additionally, the salary for the position is governed by the current Collective Bargaining Agreement (CBA) between the EPOA and Edmonds and may increase as a result of negotiated Cost-of-Living Adjustments (COLA), step increases, longevity pay, and pro-rated increases associated with the Packet Page 286 of 393 3 1% accreditation premium. Mill Creek further understands that Edmonds has recently concluded negotiations with the EPOA and that the new CBA calls for a 1.5% salary increase. That increase is reflected in the amount stated above, but is greater than the amount quoted in the letter dated October 25, 2011. Mill Creek will be invoiced for its pro-rata share of all retroactive pay and benefits (Social Security, L&I, and PERS 2) that may be due based on the new rate of pay for the DVC. b. Edmonds will send the monthly invoice to the Mill Creek Chief of Police. c. Should Mill Creek require services under the Agreement that require overtime pay under Edmonds’ rules, Edmonds shall pay the overtime pay to the DVC and invoice Mill Creek for reimbursement as soon as such costs are known to Edmonds. d. In future budget cycles, Edmonds shall notify Mill Creek of any anticipated DVC yearly salary and benefits rate increases, as described in Section 4(a), by October 15th of the year preceding the effective date of any change. By budgeting sufficient funds to pay the increased yearly salary rate, Mill Creek will be deemed to have approved the change and the rate charged to Mill Creek under this Interlocal Agreement, which shall thereby be deemed amended. 5. Record Keeping: Edmonds agrees to maintain records relative to the DVC employment, and to make such records available to Mill Creek upon request. 6. Indemnification and Insurance: Edmonds shall indemnify Mill Creek, its officers, agents and employees, from and against any claim, damages, loses, and expenses, including but not limited to reasonable attorney’s fees, arising from Edmonds’ performance under this Agreement; provided, to the extent the claim, damages, losses, and expenses are caused by intentional acts of or by the concurrent negligence of Mill Creek, its officers, agents or employees, Edmonds’ indemnification obligation hereunder shall be limited to Edmonds’ proportionate share of liability as agreed to by the parties to this Agreement or determined by a court of competent jurisdiction. 7. Termination: This Agreement may be terminated before expiration by written notice from either party. Termination by such notice shall become effective 90 days after receipt of notice. 8. Governing Law: The parties hereto agree that, except where expressly otherwise provided, the laws and administrative rules and regulations of the State of Washington shall govern in any matter relating to this Agreement. 9. Entire Agreement: This Agreement represents the entire integrated Interlocal Agreement between Edmonds and Mill Creek and supersedes all prior negotiations, representations, or agreements on this matter, either written or oral. Packet Page 287 of 393 4 IN WITNESS WHEREOF, the above and foregoing Agreement has been executed in duplicate by the parties hereto and made effective on __________________, 2012. CITY OF EDMONDS CITY OF MILL CREEK By: ______________________ By:_______________________ Mayor Dave Earling ATTEST/AUTHENTICATED: ATTEST/AUTHENTICATED: ________________________ _________________________ Sandra S. Chase, City Clerk APPROVED AS TO FORM APPROVED AS TO FORM _________________________ __________________________ Office of the City Attorney Packet Page 288 of 393 5 Attachment A City of EDMONDS Washington DOMESTIC VIOLENCE COORDINATOR – Part Time Department: Police Bargaining Unit: Law Support FLSA Status: Non Exempt Revised Date: January 2012 Reports To: Sergeant POSITION PURPOSE: Under the supervision of a sergeant, responsible for the coordination of domestic violence related cases between victims, police department, prosecuting attorney’s office and the Courts of jurisdiction; provides victims of domestic violence with education; assists with safety planning and refers them to community agencies as needed for safe housing or other immediate needs; makes recommendations to the City Prosecutor regarding case outcomes and provides input to the Municipal Court Judge regarding issuing/terminating No Contact Orders on criminal cases; provides support to victims at court hearings and assists victims in understanding the civil and criminal legal system; provides information and assistance related to obtaining civil protection orders. ESSENTIAL JOB FUNCTIONS AND RESPONSIBILITIES: The following duties ARE NOT intended to serve as a comprehensive list of all duties performed by all employees in this classification, only a representative summary of the primary duties and responsibilities. Incumbent(s) may not be required to perform all duties listed and may be required to perform additional, position-specific duties. • Supports, educates and assists victims of domestic violence through the criminal proceedings in municipal and superior courts; provides information regarding criminal justice procedures and appears with domestic violence victims at arraignments, pre-trial hearings, trials and other court hearings as deemed necessary. • Provides information to domestic violence victims regarding the benefits of prosecuting domestic violence cases. • Receives and reviews all police reports concerning domestic violence regardless if a crime has occurred. • Assists officers and detectives in obtaining evidence of domestic violence; takes photographs of victims’ injuries, researches prior history of abuse and obtains medical records and document findings in accordance with departmental policy. • Contacts victims of domestic violence by phone to provide information or to set up appointments to meet in person. Packet Page 289 of 393 6 • Assesses victim’s immediate needs (i.e. safe housing, income, etc.), helps victim develop a safety plan; provides information regarding filing for and obtaining civil protection orders. • Mails domestic violence related materials and community resource information to domestic violence victims and meets with victims of domestic violence to provide case information, domestic violence education, safety planning and referrals to community resources. • Appears at court hearings related to domestic violence cases; provides input to the Prosecutor and the Judge regarding No Contact Orders and attends arraignments and pretrial hearings. • Updates domestic violence victims on the status of criminal cases after court hearings where victims are not present. • Reviews domestic violence cases with City Prosecutor to discuss best outcomes for each case and makes charging and sentencing recommendations. • Develops reference materials for use by court staff, prosecuting attorney and domestic violence victims. • Responds to telephone and walk-in requests for service and refers victims to social service or community agencies as appropriate. • Prepares statistical reports as directed and attends department staff meeting when requested. • Keeps updated file information pertaining to all criminal cases via computer; communicates via email with the Prosecutor and Probation Department regarding criminal cases and corresponds with outside agencies and other professionals to discuss domestic violence related issues. • Prepares required reports and other documents as required and assist in developing operational policies and procedures. Assists in training department personnel relative to domestic violence. • Maintains physical abilities as noted under Working Conditions (below). • Performs other duties as assigned. Required Knowledge of: • Principles and dynamics of domestic violence. • Federal, state and local laws relating to domestic violence, protection orders and No Contact Orders. • City and department policies. • Criminal justice system and procedures in municipal court and state court. • Victimology and crisis intervention techniques. • Locating and finding resources for victims’ assistance. • Report preparation and record keeping. • Effective communication principles and practices to include public relations. • Current office procedures, methods, and equipment including computers and computer applications such as word processing and spreadsheets. • English usage, spelling, grammar and punctuation. • Principles of business letter writing. Packet Page 290 of 393 7 Required Skill in: • Ability to manage multiple tasks, assignments and follow-up investigations. • Responding effectively in crisis situations with a judgment free attitude. • Working with individuals and agencies with a variety of backgrounds and purposes. • Familiarity with community resources and ability to make appropriate referrals. • Working directly with adult and child victims of domestic violence. • Testifying accurately and effectively in court. • Interviewing victims, witnesses, and suspects. • Interpreting and administering policies and procedures sufficient to administer, discuss, resolve, and explain them. • Maintaining confidentiality and communicating with tact and diplomacy. • Effective oral and written communication principles and practices to include public relations and customer service. • Current office procedures, methods and equipment including computers and computer applications affecting work. • English usage, spelling, grammar and punctuation. MINIMUM QUALIFICATIONS: Education and Experience: Preferred education and experience are an Associate’s Degree in Social or Behavioral Science, Criminal Justice, Psychology, or related field and prior experience in the legal system working in a non-profit victim oriented program or within the criminal justice system performing domestic violence/victims advocacy, assisting victims, or performing crisis/counseling intervention; OR an equivalent combination of education, training and experience. Licenses or Certifications: Valid Washington State Driver License. Must be able to successfully complete and pass background check. May be required to successfully complete and pass other examinations as required by law or by city and department policies and/or Civil Service Commission Rules and Regulations. WORKING CONDITIONS: Environment: • Standard office environment. • Driving a vehicle to conduct work. Physical Abilities: • Hearing, speaking, or otherwise communicating to exchange information with others in person or on the telephone. Packet Page 291 of 393 8 • Sitting, standing or otherwise remaining stationary for extended periods of time. • Operating a computer keyboard and camera. • Ascending/descending stairs and walking. • Lifting/carrying, pushing or pulling heavy items up to 50 pounds. • Bending at the waist, kneeling or crouching or otherwise positioning oneself to accomplish tasks. • Operating a computer keyboard. Hazards: • The nature of the position can involve situations which may present a danger to personal safety. • Exposure to infectious disease. Incumbent Signature: ____________________________________ Date: ________________________ Department Head: _______________________________________ Packet Page 292 of 393    AM-5048     4. W.              City Council Meeting Meeting Date:08/21/2012 Time:  Submitted For:Dave Earling Submitted By:Carolyn LaFave Department:Mayor's Office Review Committee: Committee Action:  Type: Action  Information Subject Title Confirmation of the Mayor's appointment of Ian Duncan to the Planning Board. Recommendation Mayor Earling recommends Ian Duncan's confirmation to the Planning Board position of Alternate. Previous Council Action Narrative The appointment of Kristiana Johnson to the City Council left Position #3 on the Planning Board vacant. Planning Board Alternate William Ellis moved into her vacated position. This left the Alternate position vacant. On June 7, 2012 the candidate process for this position was opened-up. Four applications were received and Mayor Earling interviewed all four candidates. Ian Duncan was chosen by the Mayor as the most qualified candidate to fill this position due to his architecture and planning experience. Mr. Duncan will fill the position of Alternate through the end of 2012. Attachments Ian_Duncan Form Review Inbox Reviewed By Date Finalize for Agenda Sandy Chase 08/15/2012 02:54 PM Mayor Dave Earling 08/15/2012 03:05 PM Form Started By: Carolyn LaFave Started On: 08/15/2012 01:22 PM Final Approval Date: 08/15/2012  Packet Page 293 of 393 Packet Page 294 of 393    AM-5044     5.              City Council Meeting Meeting Date:08/21/2012 Time:30 Minutes   Submitted For:Shawn Hunstock Submitted By:Shawn Hunstock Department:Finance Review Committee: Committee Action:  Type: Information  Information Subject Title Insurance Briefing from Washington Cities Insurance Authority. Recommendation N.A. for information only Previous Council Action N.A. Narrative Lisa Roberts from Washington Cities Insurance Authority (WCIA) will present an overview of what WCIA is, how they are structured, a brief review of their recent financial statements, requirements for participation by cities and other members, what types of services they provide, an overview of claims history for Edmonds compared to our peer group, and some dos and don'ts for cities in general and Council members specifically. Attachments City of Edmonds Public Officials Presentation Form Review Inbox Reviewed By Date City Clerk Sandy Chase 08/15/2012 11:33 AM Mayor Dave Earling 08/15/2012 11:49 AM Finalize for Agenda Sandy Chase 08/15/2012 12:11 PM Form Started By: Shawn Hunstock Started On: 08/15/2012 11:03 AM Final Approval Date: 08/15/2012  Packet Page 295 of 393 CITY OF EDMONDS PUBLIC OFFICIALS PRESENTATION Lisa Roberts, ALCM, ARM-P WCIA Risk Services Manager Packet Page 296 of 393 Washington Cities Insurance Authority (WCIA) is a municipal risk pool. Its 1981 enabling legislation allows it to perform like a private insurance company. One hundred and fifty cities and regional entities, performing a city function like 911 dispatch agencies, self-insure each other. Through the use of an actuary, the group annually creates over $33 million in assessments to cover liability and property risks. WCIA has over $147 million in assets, of which $60 million is undesignated member reserves to handle contingencies beyond actuarially predicted events. Its administrative budget is $4 million, handles 1,800 claims annually, and spends $6 million in litigating a pending of 300 lawsuits. WCIA is distinguished from an insurance company by the aggressiveness of its litigation defense. We win outright over 71% of our lawsuits, including a police win at the U.S. Supreme Court. To actively reduce the number of claims and lawsuits, it is aggressive in promoting annual risk management and training requirements to each member. All employees and elected officials are required to participate in some manner. This council orientation counts as one type of training. Failure to participate in our systematic training program, called the COMPACT, results in substantial peer-induced financial or coverage-related penalties. The following graph identifies significant public official liability losses in comparison with other city departments. In addition, the following charts present the City’s overall risk profile by worker hour, compared to its peer members of the Pool. Public official losses largely consist of Mayor/City Manager employment practice activity: i.e., management of personnel. The Council’s losses consist of land use issues and interference with administration activity: i.e., deviating from strategic policy making functions, appearance of fairness, conflict of interest, and quasi-judicial due-process violations. The included vignettes identify actual public official losses, emanating from violations of clear RCW-created roles and responsibilities, misassumption of powers, and deviation from city policy. WCIA periodically visits with councils early each calendar year to identify public official conduct which precipitates losses. We hope this is informative and influences conduct. Packet Page 297 of 393 AUTHORITY PHILOSOPHIES Mission Statement: “WCIA will take a leadership role to provide professional risk management and stable risk financing programs that respond to members’ needs.” Annual Goals: • Assure that WCIA programs are prudently funded and managed to stabilize member assessments. • Maintain prudent growth plan to preserve WCIA’s role as a leading pool in the state. • Foster sound risk management practices. • Respond to member needs. Program Control: WCIA believes the Full Board should be fully aware, and in control, of all pool operations. Not a broker, third party administrator or insurance company. In our program, the “insured's” run the “insurance” company. Membership Control: The Authority believes the Full Board and a Committee System should be in complete control of the entire program. And that each member, should fully participate in its risk profile, loss resolution and training. Independence from the Insurance Industry: The Authority was punished by the insurance industry in the previous, mid-80’s, “hard market cycle”. We have steadfastly built a commanding surplus of funds, a large self- insurance layer, and aggressive pre and post loss support programs to insulate us from those market cycles. Remaining liability insurance costs for catastrophic loss is only 3% of our administrative budget, versus 98% for other pools. We use “reinsurance” rather than “excess” insurance. The insurance carrier performs only a checkbook function. Identification of desired exposures, coverage decisions, and claim and litigation decisions for all coverage layers revert to the Full Board. Financial Independence: WCIA has the strongest financials of any Washington Pool. This allows us to assume any exposure or provide any service desired by the Full Board. We have amassed $147 Packet Page 298 of 393 million in assets, a $60 million undesignated member reserves, and a $4 million administrative budget. Member assessments are annually subsidized by a stable investment income of 5.8% investment yield. Litigation and Claims Management: WCIA believes in aggressive litigation as opposed to loss settlement to discourage unwarranted claims; each member should have direct participation in its claims and litigation, both in pre- and post-loss stages. Pre-Defense Review: Pre-loss services include a $625,000 budget-line item, created to pre-position a member for potential land-use, employment and other management related litigation. This is a cost-free service, requires no member participating funds, and has no adverse coverage exclusion ramifications. Litigation Defense: The Authority uses trial experienced, aggressive, municipal defense experts who customize their efforts to our expectations. We annually win (pay no indemnity damages) in 71% of all litigation. We include department heads and employees in depositions, mediations and trials. Councils receive frequent defense attorney updates. Our program is active at the U.S. Supreme Court, Washington State Supreme and the Federal 9th Circuit appellate court. Training Commitment COMPACT: WCIA believes a formal, comprehensive training program, coupled with aggressive field risk management services, systematically reduces risk of loss and supplements city operation. Aggressive risk management is an essential, required element of pool membership. A $700,000 budget line item supports a nine-member field risk management team, and a formal COMPACT training program. The COMPACT, which receives strong membership support, provides incentives and penalties to encourage effective risk management and loss control participation. Both mandatory and voluntary elements are provided cost free, often at the member’s own location. Consultant and member-specific- training requests, such as development of personnel manuals are welcomed. The field team, cross-trained in claims adjusting, systematically reviews member departments from exposures determined by the Full Board. In addition, they help sustain each member’s risk management program with specific service. To insure responsiveness, each member has a risk management representative assigned to them who has no other conflicting role. Assessment Formula: Each member’s assessment should largely reflect its own loss experience, its potential exposures and a percentage of pool services; be developed by a professional actuary; openly approved by the Full Board; annually receptive to improved risk management results. Packet Page 299 of 393 Deputy Director: HR/Finance Financial Mgmt Actuary Investment Broker Human Resources Member Services Manager WCIA University/ Training Website Deputy Director: Underwriting Insurance Brokers Property Program Deputy Director: Claims/Litigation Loss Database Adjuster Staff Outside Services Firm Defense Firms Executive Director Lobbyist Marketing Committee System Long Range Planning Budget Loss Control Investment Audit Corporate Counsel Executive Committee Administration Operation Full Board Governing Body Washington Cities Insurance Authority Risk Services Manager COMPACT Marketing Asst. Consultation Program RM Consultants Packet Page 300 of 393 Packet Page 301 of 393 Packet Page 302 of 393 Packet Page 303 of 393 AUTHORITY COMPACT HISTORY: The COMPACT is a formal, multi-year program consisting of training, risk management and membership attentiveness elements. The entire membership commits to annual training and risk management efforts while the Authority commits to high-quality resources. Since the late 1980’s, it has systematically addressed every municipal exposure. The annual, audited, topics are chosen by the membership and implemented in multi-year increments. An annual $450,000 line item, within a $700,000 Member Services Department budget, is specifically dedicated solely for training purposes. National and local trainers are brought directly to the individual member or nearby regional training sites. In 2008 over 5,739 employees were trained at 268 sites. Unusual to Washington pools, risk management training is a mandatory membership obligation, accomplished largely through this program. The COMPACT has received national honors for meritorious achievement, recognized as a state-of- the-art training program, from the Association of Governmental Risk Pools (AGRIP). TRAINING: After analyzing the ease and enthusiasm with which the original, single training requirement was met, and the large volume of additional voluntary training repeatedly requested, a second mandatory training requirement was added. Unlike the first requirement in which every member trains on the same topic, this training is highly flexible, enhanced by a broad list of topics. A Risk Management 101 series, specific to the individual member’s sole need, further adds to program flexibility. This popular session is taught by Authority staff, who actively seeks department employee’s participation. Specific risk management problem-solving, within the employees own job environment, are actively pursued. Topics traditionally include police, fire, land use, personnel, public works and parks, plus custom public officials trouble-shooting areas. Updated issues, precipitated by the legislature or court decisions, complete the Authority’s COMPACT commitment. SUPPORT: The Risk Management Reps are each assigned a specific member, and are instrumental in ensuring its annual training obligation success. They research each year’s first mandatory training topic, to develop a comprehensive checklist of training specifics. Members frequently forward their checklist responses weeks before the Rep personally makes an annual field visit to maximize field time. Members receive personalized assistance in successfully achieving their COMPACT goals. SUCCESS: In the history of the program, only one city failed in its COMPACT requirements and was asked to leave the pool. In 2010, one hundred percent of the membership passed the three training topics, the annual COMPACT field audit, and the Member Attentiveness elements, while aggressively training in many more areas as well. Packet Page 304 of 393 2012 COMPACT Organizational Attentiveness Requirements • Attend one of the three Full Board Meetings held annually (January and October meetings are held in Seattle; the April meeting in Yakima) • Pay Assessments on Time – by January 31st postmark • Appoint a WCIA Delegate and Alternate – update when changes occur • Report Claims in a timely manner – per the Claims Manual policies Educational Requirements • Attend three WCIA educational sessions • One session in a topic that supports the current Audit topic • Two additional sessions in any topic area • Delegates must attend at least one session • WCIA City Attorneys must attend one session Annual Audit Requirements 2012 Cyber Liability Time Frame: Approximately 2 – 3 Hours Participants: Delegate/CIO/IT staff This audit is designed to identify and mitigate Cyber Liability within our Member agencies. The 2012 Audit Questionnaire is available online at the WCIA Members Only website under “Audit Questionnaire”. 2011 Public Records Act and Premises Liability Follow Up (if applicable) Time Frame: 15 – 30 Minutes Participants: Delegate/Public Works/Parks Department Head 2012 Annual Review Requirement Time Frame: Approximately 1 Hour Participants: Delegate/City Manager/City Administrator The Risk Management Representative will review the following information: • WCIA Liability, Auto, Property, Boiler and Machinery, Crime and Fidelity coverages, rates and deductibles, and any special programs • Property & Auto Schedules • Risk Profile and/or Current Liability Loss Runs • Analysis of Loss History providing specific direction for training and/or consulting • COMPACT Status Report • WCIA Services Packet Page 305 of 393 PRE-DEFENSE REVIEW PROGRAM In 1989, WCIA implemented a new program to assist Members with potential sensitive exposures. Our pre-emptive “damage control” perspective produced a program called Pre- Defense Review. Program Description: • Participation is voluntary. WCIA strongly encourages program use, but it is not yet a requirement for coverage and/or defense. • Funding for the program comes from the WCIA Administrative Budget. Pre-Defense Review monies are not included in any individual member assessment calculation or loss cost. • Discretion of the use of the program lies solely with the Claims Manager. The Claims Manager makes determination of the Pre-Defense progression, from incident to claim or litigation status. The program ends once a formal claims status is recognized. The Claims Manager controls assignment of the Pre-Defense Attorney. The same attorney usually continues as the Defense Attorney in any resulting litigation for the purpose of continuity. • Communication and cooperation among team members are required for program success – the team includes the City Attorney, Member Human Resources staff, and particular Department staff, Claims Manager and Defense Attorney. Procedure: • WCIA Member Delegate notifies the WCIA of the request for help. Initial contact may be by phone but should always be followed up with a written request including all backup materials, correspondence, etc. • The WCIA Claims Manager will determine if the Pre-Defense Program applies. • WCIA will assign the issue to the appropriate Defense Attorney. • The assigned Attorney will contact the WCIA Member and work directly with them until the situation is resolved. Examples of Program Usage: Harassment Complaint Disability Accommodation Issues Potential Termination For questions, please contact Ann Bennett, Deputy Director, Claims and Litigation Packet Page 306 of 393 CONSULTATION PROGRAM WCIA provides an assortment of consultation opportunities for its Members. The following provides an overview of the various types of services available: On-Site Analysis: • Your assigned Risk Management Representative is available for on-site analysis of risk management exposures common to municipal government, such as playground and building inspections. • Your Risk Management Representative is available to attend meetings with department heads and/or staff to discuss your agency’s particular risk management issues. • Your assigned Risk Management Representative is also available to provide New Member, New Delegate or New Department Head Orientations. The Claims Director is available to provide new Police Chiefs, and City Attorneys and Claims Contact Liability Inquiries: • If you have a liability question or concern, your assigned Risk Management Representative is available to research and respond to you either by phone or email. • Legal consultations are available to assist the Membership in the areas of Employment, Land Use issues, Public Disclosure Requests or other general issues that are not particular to a potential claim, but that require the assistance of an attorney. Please contact the Risk Services Manager directly. For questions, please contact Lisa Roberts, Risk Services Manager Packet Page 307 of 393 Department Codes: Edmonds vs. Actuarial Group 3 2007 - 2011 Loss Severity | Edmonds Text5: $5,2 2 2 $15 8 , 8 9 0 $0 $71 , 9 1 1 $0 $0 $8,3 8 8 $0 $0 $0 $44 0 , 5 3 7 $81 8 $33 , 9 3 2 $27 , 5 5 4 $0 $23 3 , 4 6 9 $30 0 , 6 8 6 $44 , 0 6 3 $0 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 AC AD CL DR DS FRM FRS GEN LI MA PO PR PRM PWE PWR PWS PWSM PWW SC Member Group AC ANIMAL CONTROL AD ADMINISTRATION CL CITY LIGHT DR DEVELOPMENT REVIEW DS DISPATCH FRM FIRE MEDIC FRS FIRE SUPPRESSION GEN GENERAL LI LIBRARY MA MARINA PO POLICE PR PARKS REC PROGRAMS PRM PARKS MAINTENANCE PWE PW ENGINEER PWR PW REFUSE PWS PW SEWER PWSM PW STREETS PWW PW WATER SC SENIOR CENTER Loss Frequency | EdmondsPacket Page 308 of 393 Group Cost Per Worker Hour: $0.45 2007 - 2011 Cost Per Worker Hour | Group 3 Text5: 1.6 4 0.9 6 0.7 9 0.5 6 0.5 1 0.4 5 0.4 5 0.4 1 0.4 0 0.3 9 0.3 8 0.3 7 0.2 8 0.2 5 0.2 5 0.2 3 0.2 0 0.1 6 0.1 3 0.1 0 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 WI MT DE AB ED TM PL AR BK MU FI CN EN MR AN SL CE SU OH CA See page 2 for listing of member names All Other Group Members are $0.00 Cost per Worker Hour. Packet Page 309 of 393 CITY COUNCIL LIABILITY VIGNETTES Below are common examples of questionable council action which needlessly generated claims and litigation against the city. Leaking Executive Session Information: The Mayor was using the Authority’s Pre-Defense Review program to systematically develop a case for termination of the Public Works Director. Councilpersons Gus and Joe, the Director’s best friends since childhood, listened in executive session to the litigation plan outlined by the assigned defense attorney. They could see that Mr. Director was soon to leave. They leaked the defense plan to their friend, who in turn gave it to the press. It was printed on the front page of the local newspaper, alerting the plaintiff attorney to weaknesses in his case. Neither the defense attorney nor the Authority took this very well, and issued sanctions upon the City for future personnel losses. Employment Practice coverage was limited by applying a $50,000 deductible on future personnel losses and a demand that all council persons attend numerous personnel training classes. The makeup of the council changed dramatically in the next election. Leaking potential real estate transactions is also common. A realtor council person leaked a significant town square plan to real estate buddies, which drove the project cost through the roof. Other council leaks increased the purchase price of wet land property needed to balance wet land percentages. Moral of the Story: If you interfere with the defense attorney’s confidential work product and increase the City’s exposure to loss, your access to our claims and litigation will be protected. Interlocal powers authorize claims and litigation resolution to our Executive Committee. Extension to the Council is discretionary. In all three examples the council person was publically reprimanded, financially sanctioned, and issued a public apology. When asked, WCIA refused to pay legal defense costs. Open Public Meeting Violation: Four council persons wanted to non-renew the city manager’s contract. They took great pains not to meet as a quorum, using serial meetings of three to reach a consensus, determine resignation terms and recommend an interim manager’s employment terms. They advised the remaining council an hour before the council meeting, rather than in executive or open session. With four votes, they were successful, but incurred needless effort. Packet Page 310 of 393 The remaining council and the public were outraged. A public meeting violation lawsuit was filed by a citizen’s group. The council persons were forced to reveal their actions through formal discovery, even giving up their personal computer hard drives and files. A court opinion forced the city to pay both the council persons defense attorney fees and plaintiff attorney fees; over $400,000. The big punishment however, was the public’s scorn. Incumbents were not re-elected. Moral of the Story: Public transparency is here to stay. Study sessions and executive session could have determined the issue. The city manager had a slam-dunk case for violation of employment practice/due process rights, but settled for a lucrative resignation instead. Understand public employees have union, employment manual and individual contract rights. Avoid suspicion of process through Open Meeting Act, public or executive session, usage. Inappropriate Council Meeting Remarks: Council person Beatrice always wants to support the public input meeting segment. When a citizen complained about the City’s failure to install a “Children Playing” sign in a neighborhood, Beatrice volunteered the Public Works Director to install one. There was no investigation through the MUTCD that it is an illegal sign. Nor was placement based upon traffic volume, site distance or accident history to reach an informed decision. Harold, on the other hand, ignored a five-year accident history to stifle any city intersection modification. He advised, on the record, that this way his way to church, gave him a free-left hand turn, and resisted changing a good thing. Plaintiff attorneys used that admission-against- interest comment to attain a five-zero settlement on behalf of a brain-dead bicyclist. Moral of the Story: Print and TV mediums give the plaintiff the gift of information. Study citizen requests, ask for staff input, and have it respond to the public with knowledgeable information. City staff goes through annual liability training, has access to the Authority’s risk management reps and a formal defense attorney counseling program resources, as well as using the City Attorney. Interference with Staff Functions: Council person Clyde stopped a rookie police officer on a side road, berating him for his dress and performance, said he had been keeping an eye on the officer, reviewed his personnel file and criticized his way of policing. The officer went to his union, the City’s employment manual (where no council person was listed in the supervisory chain), to an attorney and a no-contact order, and then to the press, just for good measure. Moral of the Story: Each type of elected official needs to know their role. The council’s role is strategic, policy-making. City day to day administration belongs to the Mayor or the City Manager, particularly the employment practice function. Unlike private industry, public employees Packet Page 311 of 393 have enhanced job rights, polices, and procedures protected by statue. Council persons are not in the employment practices chain of command. If you observe poor practices, start at the top with the Mayor or Manager. Even starting in the middle of the chain can cause problems. The strategic annual budget process is your check and balance. Land Use Permit Appeal Process: The Council was ecstatic over a big-box store application within the City until it was realized that the artist’s rendering included the name W-A-L… on the building’s side. Council efforts to frustrate the permit included addition of corporate health benefits as permit elements and refusing multiple egress points through city property. Council newspaper and public quotes of “we’ll never let…” even appeared at council sessions, community organization meetings etc. Moral of the Story: Even the most offensive corporate cultures are not part of the permit process. More objective issues such as traffic volume or public safety are more viable hurdles. Going outside the process to show bias, although politically vibrant, create easy plaintiff due- process advantages in court. Shopping for Zoning/Code/Ordinance Changes: The Chamber caught the Council’s ear wanting to fight back against big chain stores which were putting local Mom and Pop stores out of business. Although the council sought the Pool’s Pre- Defense Reviews legal advice, it still shopped for a carefully crafted legal opinion which offered partial help in creating an ordinance allowing only locally owned businesses within city limits. National chains went on full alert. Moral of the Story: This is probably an unconstitutional ordinance, enacted but yet to be enforced. WCIA and this council are at odds over what appears to be an intentional act against clear City Attorney and Defense Attorney advice. If there is a chain-store lawsuit, coverage and defense may not apply. Use of Moratoria The City of Seattle, Kenmore and Bothell all had rolling moratoriums against strip club and similar facilities, extending from 18 months to nine years. A Federal Court judge, often favorable to the Pool in land use litigation, served notice that application for adult entertainment permits should receive the same timely resolution as any other land use action. After Seattle lost $500,000 in litigation, the plaintiff sued Kenmore and Bothell, gaining easy mediation settlements of $350,000 as well. Adult entertainment is protected by free speech and expression civil rights and is now extended to land use processes through two published opinions. Moral of the Story: Moratoria are emergency measures to help preserve the status quo, intended to temporary suspend the right of property owners to submit development application and approvals Packet Page 312 of 393 while cities review and revise comprehensive plans, licenses and regulations. That broad statutory land use authority has now been modified by First Amendment free speech and expression rights. While old ordinances and land use practices should be reexamined and improved, no longer may a city impose a moratorium on adult entertainment permits to study the issue. Land use moratoria are now easy targets for plaintiffs. Council Usage of Electronic Communications Council person Jane twittered the council to meet at a local restaurant to de-stress from that night’s council decisions. The invitation reached more than just the council and public activists showed up. One council person, upon entering the front door and seeing that he was about to make a quorum in violation of the open public meetings act, left before he could be counted. Several large-city council persons, using city computers during a public-input session, e-mailed each other as to the veracity of a speaker. When challenged, they had to divulge this public record, impacting the way the City was viewed by the public. Moral of the Story: City official’s use or misuse of electronic correspondence can be particularly problematic under the Appearance of Fairness Act when dealing with Land Use issues. Taking Matters Into Your Own Hands: Harold didn’t think the City’s newsletter did a good enough job so he created his own. He copied (poorly) the City logo, slandered the female public works director and included executive session discussion to make it interesting. He made city policy. Jim and John suspected ineffective police department actions, so they spied upon a drug sting operation, disguising them by using a spouse’s car, but they breached the security perimeter, imperiled the officer’s safety and blew the potential bust. They drew union grievance, a civil lawsuit, and their own recall action. They asked WCIA and the City to pay their legal bills. Both declined, supported by a State Auditor gift of public funds opinion. Using his outdoor activist election plank, Carl was excited about a regional trail soon to go through the city. He couldn’t wait for the trail head to be purchased however, and being an experienced DC-8 Cat driver, cleared the trail head anyway. Negotiations with the land owner ceased and the city lost any leverage. It spent thousands to litigate a land use “takings” lawsuit including an exorbitant purchase price. Perhaps the most blatant act was a councilperson who decided he would single-handedly head off an adverse land use decision by a subcommittee which would impact a local citizen’s group. During a TV council session, he gave his confidential city liability opinion by the City Attorney to the group’s (plaintiff) attorney. The councilperson opined in error that he was waiving his individual attorney/client privilege. The council directed the police chief to retrieve the document while the plaintiff attorney read furiously, also on camera. Without there being a crime, the attorney kept the document, advancing his intended land use lawsuit. Packet Page 313 of 393 Moral of the Story: Public officials need to know the parameters, often established by RCW, in each other’s powers and roles. They also need to differentiate between their public and private opinions. Taking an oath of office may actually limit their actions. Only the entire council can waive attorney client privilege. This councilperson was publicly sanctioned, paid a $500 fine from personal funds, stripped of sub committee assignments, and was forced to issue an apology. WCIA subsidizes many city department and council, cost-free trainings, national accreditations and internal investigations as part of its training and consulting role. Taken to extreme the oath of office won’t protect public officials from intentional acts violations, or from committing crimes. Council persons should always have the protection of real, rather than implied, authority. Revised Council Do’s and Don’ts Packet Page 314 of 393 Packet Page 315 of 393    AM-5075     7.              City Council Meeting Meeting Date:08/21/2012 Time:15 Minutes   Submitted For:Shawn Hunstock Submitted By:Shawn Hunstock Department:Finance Review Committee: Committee Action:  Type: Information  Information Subject Title Update on Budget Forcast Recommendation N.A. for information only. Previous Council Action N.A. Narrative Finance Director Shawn Hunstock will present an overview of some of the things that have happened during the last eight months that will impact the budget for 2013 and beyond. The original General Fund Forecast from the adopted 2012 budget will be reviewed as well as an updated version of the forecast that includes the changes since December 2011. Form Review Inbox Reviewed By Date City Clerk Linda Hynd 08/16/2012 12:14 PM Mayor Dave Earling 08/16/2012 12:25 PM Finalize for Agenda Linda Hynd 08/16/2012 12:53 PM Form Started By: Shawn Hunstock Started On: 08/16/2012 09:31 AM Final Approval Date: 08/16/2012  Packet Page 316 of 393    AM-5043     8.              City Council Meeting Meeting Date:08/21/2012 Time:10 Minutes   Submitted For:Shawn Hunstock Submitted By:Sarah Mager Department:Finance Committee: Type: Information Information Subject Title June 2012 Quarterly Financial Report Recommendation N.A. For informational purposes only. Previous Council Action N.A. Narrative The June 2012 quarterly financial report reflects additional changes to those shown with the May 2012 report.  Council feedback is being requested on the changes, as well as any other changes they would like to see. Attachments June 2012 Monthly Financial Report Form Review Inbox Reviewed By Date Finance Shawn Hunstock 08/15/2012 11:51 AM City Clerk Sandy Chase 08/15/2012 12:00 PM Mayor Dave Earling 08/15/2012 12:19 PM Finalize for Agenda Sandy Chase 08/15/2012 02:00 PM Form Started By: Sarah Mager Started On: 08/15/2012 09:07 AM Final Approval Date: 08/15/2012  Packet Page 317 of 393 1 12/31/2011 3/31/2012 6/30/2012 Q2 YTD General Fund 9,562,638$ 7,113,028$ 9,782,327$ 2,669,299$ 219,690$ Special Revenue 3,610,619 4,341,494 4,243,306 (98,188) 632,688 Debt Service 242,765 242,806 244,022 1,216 1,256 Governmental Funds 13,416,022$ 11,697,328$ 14,269,655$ 2,572,327$ 853,634$ CHANGE IN FUND BALANCESGOVERNMENTAL FUNDS FUND BALANCES ---- ACTUAL -------- ACTUAL ---- General Fund activity through June added an increase of $219,690 in fund balances year-to-date. The second quarter brought an increase of $2.7 million in the general fund, while at the end of the first quarter; there was a $2.4 million deficit in this fund. Several specific revenue line items are tracking ahead of budget so far through June. These include the Electric Utility Tax, Telephone Utility Tax, Business Licenses (which typically come in early in the year after renewals go out), Franchise Fees, Liquor Excise Taxes, and Real Estate Excise Taxes (there has been a larger number of sales transactions than were expected). At the end of the second quarter, 50% of the year had expired. Overall, General Fund expenditures are on track with 51% of budget spent to date. Salaries and Wages for all departments are at 47% of budget, and Overtime is at 43% of budget. Departments that are significantly under budget include Human Resources (40% spent so far), Economic Development (40%), the Clerk’s Office (40%), and Parks and Recreation (43%). Combined governmental fund activity through June added an increase of $853,634 to fund balances. The General Fund was responsible for $219,690 of this increase, the special revenue funds for $632,688, and the remaining $1,256 was due to an increase in the debt service funds. The second quarter brought an increase of $2.6 million in governmental funds, while at the end of the first quarter; there was a $1.7 million deficit in this fund. There has not been a significant change in Debt Service fund balances year-to-date. Packet Page 318 of 393 2 $9.56 $7.11 $9.78 $3.61 $4.34 $4.24 $0.24 $0.24 $0.24 - 2 4 6 8 10 12 Dec 2011 March 2012 June 2012 Mi l l i o n s General Fund Special Revenue Debt Service Governmental Fund Balances-By Fund GroupGovernmentalFund Balances-By Fund Group $13.42 $11.70 $14.27 - 2 4 6 8 10 12 14 16 Dec 2011 March 2012 June 2012 Mi l l i o n s Governmental Fund Balances -Combined 12/31/2011 3/31/2012 6/30/2012 Q2 YTD 104 - Drug Enforcement Fund 124,661$ 165,623$ 156,136$ (9,487)$ 31,475$ 111 - Street Fund 392,049 284,506 233,328 (51,178) (158,721) 112 - Combined Street Const/Improve 423,449 619,232 539,313 (79,919) 115,865 120 - Hotel/Motel Tax Revenue Fund 93,895 108,523 105,590 (2,933) 11,695 125 - Real Estate Tax 2 436,640 565,696 722,974 157,278 286,333 130 - Cemetery Maintenance/Improvement 85,714 79,750 80,958 1,208 (4,756) 132 - Parks Construction Fund 86,794 391,378 186,003 (205,375) 99,209 Total Special Revenue 1,643,201$ 2,214,708$ 2,024,301$ (190,407)$ 381,100$ GOVERNMENTAL Special Revenue FUND BALANCES CHANGE IN FUND BALANCES ---- ACTUAL -------- ACTUAL ---- Activity through June in the above selected Special Revenue Funds brought an increase of $381,100. The second quarter in these same funds brought a deficit of $190,407 and an increase of $571,507 in the first quarter. Activity in all special revenue funds through June brought an increase of $632,688, a deficit of $98,188 during the second quarter, and an increase of $730,875 in the first quarter. Packet Page 319 of 393 3 48,998,030 50,368,197 50,945,062 18,605,638 17,700,923 17,089,570 65,558,827 66,013,239 65,941,682 - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 Dec 2011 March 2012 June 2012 411 - Combined Utility Operation 412 - Combined Utility Const/Improve Combined Enterprise Funds (411-414) Enterprise Funds -Fund Balances 12/31/2011 3/31/2012 6/30/2012 Q2 YTD 411 - Combined Utility Operation 48,998,030$ 50,368,197$ 50,945,062$ 576,865$ 1,947,032$ 412 - Combined Utility Const/Improve 18,605,638 17,700,923 17,089,570 (611,353) (1,516,069) 414 - Capital Improvements Reserve (2,044,841) (2,055,881) (2,092,950) (37,069) (48,109) Enterprise Funds 65,558,827$ 66,013,239$ 65,941,682$ (71,557)$ 382,855$ ENTERPRISE FUNDS FUND BALANCES CHANGE IN FUND ---- ACTUAL -------- ACTUAL ---- $50,945,062 $17,089,570 $(2,092,950) $(2,100,000) $7,900,000 $17,900,000 $27,900,000 $37,900,000 $47,900,000 Combined Utility Operation Combined Utility Const/Improve Capital Improvements Reserve Enterprise Fund Balances as of June 30, 2012 Utility Fund activity through June brought an increase of $382,855 in the Enterprise Funds. The second quarter brought a deficit of $71,557, while the first quarter brought an increase of $454,412. It is expected that regular annual capital maintenance and improvements will not begin until later in the spring and summer. Packet Page 320 of 393 4 12/31/2011 3/31/2012 6/30/2012 Q2 YTD Governmental Funds 13,416,022$ 11,692,328$ 14,264,655$ 2,572,327$ 848,634$ Enterprise Funds 65,558,827 66,013,239 65,941,682 (71,557) 382,855 Internal Services Fund 6,662,893 6,718,782 6,694,339 (24,443) 31,446 Pension Trust Fund 213,210 184,287 229,118 44,831 15,909 City-wide Total 85,850,951$ 84,608,636$ 87,129,794$ 2,521,158$ 1,278,843$ CITY-WIDE FUND BALANCES ---- ACTUAL ---- CHANGE IN FUND BALANCES ---- ACTUAL ---- $9,782,327 $156,136 $233,328 $539,313 $410,075 $17,657 $105,590 $71,195 $14,215 $56,449 $722,974 $464,256 $211,722 $4,007 $80,958 $186,003 $149,768 $809,286 $10,375 $44 $243,978 $1 $2,000,000 General Fund Drug Enforcement Fund Street Fund Combined Street Const/Improve Municipal Arts Acquis. Fund Memorial Street Fund Hotel/Motel Tax Revenue Fund Employee Parking Permit Fund Youth Scholarship Fund Tourism Promotional Fund/Arts Real Estate Excise Tax 2 Real Estate Excise Tax 1, Parks Acq Gifts Catalog Fund Special Projects Fund Cemetery Maintenance/Improvement Parks Construction Fund Parks Trust Fund Cemetery Maintenance Trust Fund Sister City Commission L.I.D. Fund Control L.I.D. Guaranty Fund Limited Tax G.O. Bond Fund Governmental Fund Balances as of June 30,2012 At the end of June, 50% of the year had expired. Activity through June added $1.3 million to the City-Wide fund balance, bringing the total to $87.1 million. Of the year-to-date increase, $853,634 was generated by governmental funds, $382,855 was generated by Enterprise (Utility) Funds, $31,446 was generated by Internal Service Funds, and $15,909 by the Pension Trust Fund. The second quarter brought an increase of $2.5 million to City-Wide Funds, while the first quarter brought a deficit of $1.2 million. Packet Page 321 of 393 5 6,662,893 6,718,782 6,694,339 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Dec 2011 March 2012 June 2012 511 - Equipment Rental Fund Internal Service Fund Balances 12/31/2011 3/31/2012 6/30/2012 Q2 YTD 511 - Equipment Rental Fund 6,662,893$ 6,718,782$ 6,694,339$ (24,443)$ 31,446$ Internal Service Funds 6,662,893$ 6,718,782$ 6,694,339$ (24,443)$ 31,446$ INTERNAL SERVICE FUNDS FUND BALANCES CHANGE IN FUND ---- ACTUAL -------- ACTUAL ---- Internal Service Fund activity brought an increase of $31,446 through June. The second quarter brought a deficit of $24,443, and the first quarter, while the first quarter brought an increase of $55,889. Overall, the Equipment Rental fund did not significantly year-to-date. Packet Page 322 of 393 6 Fund No.Title 2012 Adopted Budget 6/30/2012 Revenues Variance % Received 001 GENERAL FUND 33,014,518$ 17,064,191$ (15,950,327)$ 52% 009 LEOFF-MEDICAL INS. RESERVE 600,550 300,113 (300,437) 50% 010 PUBLIC SAFETY EMERGENCY RESERVE 2,200 791 (1,409) 36% 104 DRUG ENFORCEMENT FUND 28,200 43,556 15,356 154% 111 STREET FUND 1,313,650 652,165 (661,485) 50% 112 COMBINED STREET CONST/IMPROVE 2,006,864 798,510 (1,208,354) 40% 113 MULTIMODAL TRANSPORTATION FD.- - - 0% 116 BUILDING MAINTENANCE 56,860 28,425 (28,435) 50% 117 MUNICIPAL ARTS ACQUIS. FUND 58,325 16,290 (42,035) 28% 118 MEMORIAL STREET TREE 28 10 (18) 37% 120 HOTEL/MOTEL TAX REVENUE FUND 69,200 31,457 (37,743) 45% 121 EMPLOYEE PARKING PERMIT FUND 20,140 6,162 (13,978) 31% 122 YOUTH SCHOLARSHIP FUND 2,525 566 (1,959) 22% 123 TOURISM PROMOTIONAL FUND/ARTS 19,000 62 (18,938) 0% 125 REAL ESTATE EXCISE TAX 2 770,850 378,826 (392,024) 49% 126 REAL ESTATE EXCISE TAX 1, PARKS ACQ FUND 590,800 318,595 (272,205) 54% 127 GIFTS CATALOG FUND 10,759 18,939 8,180 176% 129 SPECIAL PROJECTS FUND 482,004 - (482,004) 0% 130 CEMETERY MAINTENANCE/IMPROVEMT 119,850 69,707 (50,143) 58% 131 FIRE DONATIONS - - - 0% 132 PARKS CONSTRUCTION FUND 1,289,414 418,282 (871,132) 32% 136 PARKS TRUST FUND 177 88 (89) 49% 137 CEMETERY MAINTENANCE TRUST FD 14,600 8,207 (6,393) 56% 138 SISTER CITY COMMISSION 5,230 1,707 (3,523) 33% 211 L.I.D. FUND CONTROL 46,700 1,175 (45,525) 3% 213 L.I.D. GUARANTY FUND 151,725 106,082 (45,643) 70% 234 LIMITED TAX G.O. BOND FUND,478,573 136,786 (341,787) 29% 411 COMBINED UTILITY OPERATION 15,456,920 7,835,553 (7,621,367) 51% 412 COMBINED UTILITY CONST/IMPROVE 7,888,400 19,094 (7,869,306) 0% 414 CAPITAL IMPROVEMENTS RESERVE 1,583,389 310,075 (1,273,314) 20% 511 EQUIPMENT RENTAL FUND 1,076,456 541,151 (535,305) 50% 617 FIREMEN'S PENSION FUND 94,423 68,793 (25,630) 73% 631 TRANSPORTATION BENEFIT DISTRICT 600,000 317,216 (282,784) 53% 67,852,330$ 29,492,574$ 97,344,904$ 43% CITY OF EDMONDS REVENUES BY FUND - SUMMARY Packet Page 323 of 393 7 Fund No.Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Spent 001 GENERAL FUND 33,263,672$ 16,874,568$ (16,389,104)$ 51% 009 LEOFF-MEDICAL INS. RESERVE 619,811 298,263 (321,548) 48% 010 PUBLIC SAFETY EMERGENCY RESERVE - - - 0% 104 DRUG ENFORCEMENT FUND 80,233 12,081 (68,152) 15% 111 STREET FUND 1,625,148 810,886 (814,262) 50% 112 COMBINED STREET CONST/IMPROVE 2,107,428 682,645 (1,424,783) 32% 113 MULTIMODAL TRANSPORTATION FD.- - - 0% 116 BUILDING MAINTENANCE 245,000 1,000 (244,000) 0% 117 MUNICIPAL ARTS ACQUIS. FUND 134,550 7,913 (126,637) 6% 118 MEMORIAL STREET TREE - - - 0% 120 HOTEL/MOTEL TAX REVENUE FUND 73,750 19,762 (53,988) 27% 121 EMPLOYEE PARKING PERMIT FUND 26,086 12,543 (13,543) 48% 122 YOUTH SCHOLARSHIP FUND 4,000 2,884 (1,116) 72% 123 TOURISM PROMOTIONAL FUND/ARTS 19,000 3,863 (15,137) 20% 125 REAL ESTATE EXCISE TAX 2 1,055,000 92,493 (962,507) 9% 126 REAL ESTATE EXCISE TAX 1, PARKS ACQ FUND 697,717 80,277 (617,440) 12% 127 GIFTS CATALOG FUND 12,275 1,202 (11,073) 10% 129 SPECIAL PROJECTS FUND 483,500 1,833 (481,667) 0% 130 CEMETERY MAINTENANCE/IMPROVEMT 172,005 74,463 (97,542) 43% 131 FIRE DONATIONS - - - 0% 132 PARKS CONSTRUCTION FUND 1,397,000 319,073 (1,077,927) 23% 136 PARKS TRUST FUND 6,930 6,930 - 100% 137 CEMETERY MAINTENANCE TRUST FD - - - 0% 138 SISTER CITY COMMISSION 4,600 1,592 (3,008) 35% 211 L.I.D. FUND CONTROL 151,500 106,000 (45,500) 70% 213 L.I.D. GUARANTY FUND - - - 0% 234 LIMITED TAX G.O. BOND FUND,478,573 136,786 (341,787) 29% 411 COMBINED UTILITY OPERATION 15,789,727 5,888,521 (9,901,206) 37% 412 COMBINED UTILITY CONST/IMPROVE 10,947,679 1,535,163 (9,412,516) 14% 414 CAPITAL IMPROVEMENTS RESERVE 1,583,388 358,184 (1,225,204) 23% 511 EQUIPMENT RENTAL FUND 1,321,334 509,705 (811,629) 39% 617 FIREMEN'S PENSION FUND 123,515 52,884 (70,631) 43% 631 TRANSPORTATION BENEFIT DISTRICT 600,000 322,216 (277,784) 54% 73,023,421$ 28,213,730$ (44,809,691)$ 39% CITY OF EDMONDS EXPENDITURES BY FUND - SUMMARY Packet Page 324 of 393 8 Fund No.Title 1/1/2012 Beg. Balance 2012 Revenues 2012 Expenditures Difference 6/30/2012 End. Balance 001 GENERAL FUND 5,705,633$ 17,064,191$ 16,874,568$ 189,624$ 5,895,257$ 004 CRIMINAL INVESTIGATIONS FUND 2,500 - - - 2,500 006 EMERGENCY FINANCIAL RESERVE FUND 1,927,600 - - - 1,927,600 009 LEOFF-MEDICAL INS. RESERVE 320,656 300,113 298,263 1,850 322,506 010 PUBLIC SAFETY EMERGENCY RESERVE 1,338,178 791 - 791 1,338,968 113 MULTIMODAL TRANSPORTATION FD.55,859 - - - 55,859 116 BUILDING MAINTENANCE 212,212 28,425 1,000 27,425 239,638 TOTAL GENERAL FUND PER CAFR 9,562,638 17,393,521 17,173,831 219,690 9,782,327 104 DRUG ENFORCEMENT FUND 124,661 43,556 12,081 31,475 156,136 111 STREET FUND 392,049 652,165 810,886 (158,721) 233,328 112 COMBINED STREET CONST/IMPROVE 423,449 798,510 682,645 115,865 539,313 117 MUNICIPAL ARTS ACQUIS. FUND 401,698 16,290 7,913 8,377 410,075 118 MEMORIAL STREET TREE 17,646 10 - 10 17,657 120 HOTEL/MOTEL TAX REVENUE FUND 93,895 31,457 19,762 11,695 105,590 121 EMPLOYEE PARKING PERMIT FUND 77,577 6,162 12,543 (6,381) 71,195 122 YOUTH SCHOLARSHIP FUND 16,534 566 2,884 (2,318) 14,215 123 TOURISM PROMOTIONAL FUND/ARTS 60,250 62 3,863 (3,801) 56,449 125 REAL ESTATE EXCISE TAX 2 436,640 378,826 92,493 286,333 722,974 126 REAL ESTATE EXCISE TAX 1, PARKS ACQ 225,937 318,595 80,277 238,319 464,256 127 GIFTS CATALOG FUND 193,985 18,939 1,202 17,736 211,722 129 SPECIAL PROJECTS FUND 5,841 - 1,833 (1,833) 4,007 130 CEMETERY MAINTENANCE/IMPROVEMT 85,714 69,707 74,463 (4,756) 80,958 131 FIRE DONATIONS - - - - - 132 PARKS CONSTRUCTION FUND 86,794 418,282 319,073 99,209 186,003 136 PARKS TRUST FUND 156,611 88 6,930 (6,842) 149,768 137 CEMETERY MAINTENANCE TRUST FD 801,079 8,207 - 8,207 809,286 138 SISTER CITY COMMISSION 10,261 1,707 1,592 114 10,375 211 L.I.D. FUND CONTROL 104,869 1,175 106,000 (104,825) 44 213 L.I.D. GUARANTY FUND 137,896 106,082 - 106,082 243,978 234 LIMITED TAX G.O. BOND FUND,1 136,786 136,786 (0) 0 411 COMBINED UTILITY OPERATION 48,998,030 7,835,553 5,888,521 1,947,032 50,945,062 412 COMBINED UTILITY CONST/IMPROVE 18,605,638 19,094 1,535,163 (1,516,069) 17,089,570 414 CAPITAL IMPROVEMENTS RESERVE (2,044,841) 310,075 358,184 (48,109) (2,092,950) 511 EQUIPMENT RENTAL FUND 6,662,893 541,151 509,705 31,446 6,694,339 617 FIREMEN'S PENSION FUND 213,210 68,793 52,884 15,909 229,118 631 TRANSPORTATION BENEFIT DISTRICT - 317,216 322,216 (5,000) (5,000) TOTAL ALL FUNDS 85,850,951$ 29,492,574$ 28,213,730$ 1,278,843$ 87,129,794$ CITY OF EDMONDS CHANGE IN FUND BALANCE - SUMMARY Packet Page 325 of 393 9 Page 1 of 3 Title 2012 Adopted Budget 6/30/2012 Revenues Variance % Received TAXES: REAL PERSONAL / PROPERTY TAX 9,629,986$ 5,028,173$ (4,601,813)$ 52% EMS PROPERTY TAX 2,908,944 1,560,989 (1,347,955) 54% VOTED PROPERTY TAX 895,640 494,349 (401,291) 55% LOCAL RETAIL SALES/USE TAX 4,724,183 2,436,804 (2,287,379) 52% NATURAL GAS USE TAX 13,244 4,837 (8,407) 37% 1/10 SALES TAX LOCAL CRIM JUST 514,898 257,632 (257,266) 50% GAS UTILITY TAX 892,381 552,855 (339,526) 62% T.V. CABLE UTILITY TAX 750,682 310,333 (440,349) 41% TELEPHONE UTILITY TAX 1,390,242 792,936 (597,306) 57% ELECTRIC UTILITY TAX 1,473,880 892,229 (581,651) 61% SOLID WASTE UTILITY TAX 294,601 140,288 (154,313) 48% WATER UTILITY TAX 824,935 382,218 (442,717) 46% SEWER UTILITY TAX 470,000 232,420 (237,580) 49% STORMWATER UTILITY TAX 254,061 132,518 (121,543) 52% LEASEHOLD EXCISE TAX 221,162 105,124 (116,038) 48% PULLTABS TAX 60,257 30,491 (29,766) 51% 25,319,096 13,354,196 (11,964,900) 53% LICENSES AND PERMITS: FIRE PERMITS-SPECIAL USE 5,000 5,313 313 106% PROF AND OCC LICENSE-TAXI 1,000 510 (490) 51% AMUSEMENTS 6,000 5,475 (525) 91% BUS. LICENCE PERMIT PENALTY 5,000 3,735 (1,265) 75% GENERAL BUSINESS LICENSE 105,245 92,886 (12,359) 88% FRANCHISE AGREEMENT-COMCAST 588,008 312,287 (275,721) 53% FRANCHISE AGREEMENT-VERIZON/FRONTIER 106,930 44,459 (62,471) 42% FRANCHISE AGREEMENT-BLACKROCK 6,901 4,102 (2,799) 59% OLYMPIC VIEW WATER DISTRICT FRANCHISE 212,292 126,093 (86,199) 59% DEV SERV PERMIT SURCHARGE 21,000 8,910 (12,090) 42% NON-RESIDENT BUS LICENSE 38,885 19,950 (18,935) 51% RIGHT OF WAY FRANCHISE FEE 10,000 9,308 (692) 93% BUILDING STRUCTURE PERMITS 420,000 159,177 (260,823) 38% ANIMAL LICENSES 11,000 6,477 (4,523) 59% STREET AND CURB PERMIT 42,000 10,558 (31,442) 25% OTR NON-BUS LIC/PERMITS 7,000 5,059 (1,942) 72% DIVE PARK PERMIT FEE - - - 0% 1,586,261 814,298 (771,963) 51% INTERGOVERNMENTAL: DOJ 15-0404-0-1-754 - Bullet Proof Vest 3,969 - (3,969) 0% EECBG Grant - - - 0% WA ASSOC OF SHERIFFS TRAFFIC GRANT - - - 0% TARGET ZERO TEAMS GRANT 10,000 2,084 (7,916) 21% HIGH VISIBILITY ENFORCEMENT 6,000 406 (5,594) 7% WA STATE TRAFFIC COMM GRANT - - - 0% Puget Drive Walkway HLP-PB07(009)- - - 0% SMART COMMUTER PROJECT GRANT - - - 0% PUD PRIVILEDGE TAX 183,348 - (183,348) 0% JUDICIAL SALARY CONTRIBUTION-STATE 13,000 6,224 (6,776) 48% MVET/SPECIAL DISTRIBUTION 9,100 4,371 (4,729) 48% CRIMINAL JUSTICE - SPECIAL PROGRAMS 33,827 16,498 (17,329) 49% DUI - CITIES 9,500 3,815 (5,685) 40% LIQUOR EXCISE TAX 200,666 98,387 (102,279) 49% LIQUOR BOARD PROFITS 310,835 216,740 (94,095) 70% SHARED COURT COSTS 6,300 1,500 (4,800) 24% MUNICIPAL COURT AGREEMENT W/LYNNWOOD 1,050 750 (300) 71% FIRE DISTRICT #1 STATION BILLINGS 55,080 31,864 (23,216) 58% POLICE FBI CONTRACTS - - - 0% DV COORDINATOR SERVICES 10,760 5,380 (5,380) 50% OCDETF OVERTIME - 246 246 0% CAMPUS SAFETY-EDM. SCH. DIST.11,500 4,041 (7,459) 35% WOODWAY - LAW PROTECTION 10,000 7,277 (2,723) 73% INTERGOVERNMENTAL REVENUE-SSCCFH 69,300 34,650 (34,650) 50% SNOCOM FIBER OPTIC SERVICE INTERLOCAL - 3,600 3,600 0% SNO-ISLE 69,418 27,257 (42,161) 39% 1,013,653 465,088 (548,565) 46% REVENUES - GENERAL FUND CITY OF EDMONDS Packet Page 326 of 393 10 Page 2 of 3 Title 2012 Adopted Budget 6/30/2012 Revenues Variance % Received CHARGES FOR GOODS AND SERVICES: RECORD/LEGAL INSTRUMTS 1,050 388 (662) 37% COURT RECORD SERVICES 100 - (100) 0% D/M COURT REC SER 950 67 (883) 7% SALE MAPS & BOOKS - 23 23 0% MUNIC.-DIST. COURT CURR EXPEN 150 92 (58) 62% PHOTOCOPIES 4,000 1,889 (2,111) 47% POLICE DISCLOSURE REQUESTS 5,000 2,178 (2,822) 44% ASSESSMENT SEARCH - 5 5 0% PASSPORTS AND NATURALIZATION FEES 10,500 5,850 (4,650) 56% POLICE SERVICES SPECIAL EVENTS 26,000 6,906 (19,094) 27% DUI EMERGENCY FIRE SERVICES - 263 263 0% ADULT PROBATION SERVICE CHARGE 68,300 28,193 (40,108) 41% ELECTRONIC MONITORING 150 - (150) 0% ELECTRONIC MONITOR DUI 700 82 (618) 12% BOOKING FEES 6,300 2,197 (4,103) 35% FIRE CONSTRUCTION INSPECTION FEES 6,060 2,535 (3,525) 42% EMERGENCY SERVICE FEES 21,210 8,942 (12,268) 42% DUI EMERGENCY AID 200 33 (167) 17% EMS TRANSPORT USER FEE 848,500 325,987 (522,513) 38% POLICE - FINGERPRINTING 300 271 (30) 90% CRIM CNV FEE DUI 700 345 (355) 49% CRIM CONV FEE CT 5,900 2,159 (3,741) 37% CRIM CONV FEE CN 2,100 804 (1,296) 38% POLICE TRAINING CLASSES - - - 0% ENGINEERING FEES AND CHARGES 102,010 48,388 (53,622) 47% FIBER SERVICES - 18,039 18,039 0% ANIMAL CONTROL SHELTER 4,000 3,275 (725) 82% FLEX FUEL PAYMENTS FROM STATIONS - 106 106 0% ANNUAL VEHICLE FEE (TBD)- (80) (80) 0% ZONING/SUBDIVISION FEE 55,000 17,402 (37,598) 32% FIRE PLAN CHECK FEES 3,300 718 (2,583) 22% PLAN CHECKING FEES 235,000 104,848 (130,152) 45% PLANNING 1% INSPECTION FEE 4,500 326 (4,174) 7% S.E.P.A. REVIEW 6,000 970 (5,030) 16% CRITICAL AREA STUDY 15,000 6,355 (8,645) 42% SWIM POOL ENTRANCE FEES 52,471 19,048 (33,423) 36% LOCKER FEES 300 - (300) 0% SWIM CLASS FEES 45,520 7,796 (37,724) 17% PROGRAM FEES 800,000 421,315 (378,685) 53% TAXABLE RECREATION ACTIVITIES 120,000 89,687 (30,313) 75% SWIM TEAM / DIVE TEAM 31,150 30,002 (1,148) 96% BIRD FEST REGISTRATION FEES 620 (360) (980) -58% INTERFUND REIMBURSEMENT-CONTRACT SVCS 1,582,061 787,605 (794,456) 50% MISCELLANEOUS POLICE SERVICES - - - 0% 4,065,102 1,944,647 (2,120,455) 48% FINES AND FORFEITURES: PROOF OF VEHICLE INS PENALTY 10,500 5,058 (5,442) 48% TRAFFIC INFRACTION PENALTIES 51,472 15,000 (36,472) 29% NC TRAFFIC INFRACTION 285,000 132,428 (152,572) 46% CRT COST FEE CODE LEG ASSESSMENT (LGA)15,000 9,667 (5,333) 64% SPEEDING DOUBLE - 38 38 0% NON-TRAFFIC INFRACTION PENALTIES - 900 900 0% OTHER INFRACTIONS '04 1,250 323 (927) 26% PARKING INFRACTION PENALTIES 33,000 15,737 (17,263) 48% PR - HANDICAPPED 800 - (800) 0% PARKING INFRACTION LOC 600 40 (560) 7% PARK / INDDISZONE 600 1,786 1,186 298% DWI PENALTIES 9,500 2,985 (6,515) 31% DUI - DP ACCT - 630 630 0% OTHER CRIMINAL TRAF MISDEM PEN 50 186 136 372% CRIMINAL TRAFFIC MISDEMEANOR 8/03 40,000 16,483 (23,517) 41% OTHER NON-TRAF MISDEMEANOR PEN 600 241 (359) 40% OTHER NON TRAFFIC MISD. 8/03 11,500 7,965 (3,535) 69% COURT DV PENALTY ASSESSMENT 950 506 (444) 53% CRIMINAL COSTS-RECOUPMENTS 120,000 53,211 (66,789) 44% JURY DEMAND COST 100 - (100) 0% PUBLIC DEFENSE RECOUPMENT 37,000 15,131 (21,869) 41% COURT INTERPRETER COST 300 114 (186) 38% MISC FINES AND PENALTIES 1,050 960 (90) 91% 619,272 279,388 (339,884) 45% CITY OF EDMONDS REVENUES - GENERAL FUND Packet Page 327 of 393 11 Page 3 of 3 Title 2012 Adopted Budget 6/30/2012 Revenues Variance % Received MISCELLANEOUS: INVESTMENT INTEREST - 2,789 2,789 0% INVESTMENT SERVICE FEES 9,800 - (9,800) 0% INTEREST ON COUNTY TAXES 2,000 1,209 (791) 60% INTEREST - COURT COLLECTIONS 3,150 2,682 (468) 85% PARKING 10,000 5,755 (4,245) 58% SPACE/FACILITIES RENTALS 140,000 67,351 (72,649) 48% GYM AND WEIGHTROOM FEES 7,800 2,704 (5,096) 35% BRACKET ROOM RENTAL 1,000 2,545 1,545 255% LEASES LONG-TERM 173,465 80,740 (92,725) 47% VENDING MACHINE CONCESSION 4,700 1,598 (3,102) 34% OTHER RENTS & USE CHARGES 10,078 3,030 (7,048) 30% PARKS DONATIONS 5,800 7,642 1,842 132% BIRD FEST CONTRIBUTIONS 1,500 1,400 (100) 93% SALE OF JUNK/SALVAGE 200 1,080 880 540% SALES OF UNCLAIM PROPERTY 4,000 870 (3,130) 22% OTHER JUDGEMENT/SETTLEMENT 200 - (200) 0% POLICE JUDGMENTS/RESTITUTION 100 150 50 150% CASHIER'S OVERAGES/SHORTAGES (200) 13 213 0% OTHER MISC REVENUES 3,000 5,102 2,102 170% SMALL OVERPAYMENT - 55 55 0% NSF FEES - PARKS & REC - 60 60 0% NSF FEES - MUNICIPAL COURT 525 326 (199) 62% NSF FEES - DEVEL SERV DEPT - - - 0% PLANNING SIGN REVENUE 2,000 - (2,000) 0% 379,118 187,102 (192,016) 49% TRANSFERS-IN: INSURANCE RECOVERIES - - - 0% INTERFUND TRANSFER-IN - - - 0% INTERFUND TRANSFER - In (From 121)25,086 19,473 (5,613) 78% INTERFUND TRANSFER (From 136)6,930 - (6,930) 0% 32,016 19,473 (12,543) 61% TOTAL GENERAL FUND REVENUE 33,014,518$ 17,064,191$ (15,950,327)$ 52% REVENUES - GENERAL FUND CITY OF EDMONDS Packet Page 328 of 393 12 This page is intentionally left blank. Packet Page 329 of 393 13 Page 1 of 5 Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used GENERAL FUND EXPENDITURES: SALARIES AND WAGES 12,400,240$ 5,829,290$ (6,570,950)$ 47% OVERTIME 458,540 198,118 (260,422) 43% HOLIDAY BUY BACK 179,687 2,526 (177,161) 1% BENEFITS 4,244,174 2,053,209 (2,190,965) 48% UNIFORMS 63,880 27,032 (36,848) 42% SUPPLIES 435,011 151,733 (283,278) 35% FUEL CONSUMED 700 - (700) 0% SMALL EQUIPMENT 130,356 95,693 (34,663) 73% PROFESSIONAL SERVICES 1,852,841 685,413 (1,167,428) 37% COMMUNICATIONS 210,037 89,260 (120,777) 42% TRAVEL 51,060 10,485 (40,575) 21% ADVERTISING 71,667 15,602 (56,065) 22% RENTAL/LEASE 139,281 67,770 (71,511) 49% INSURANCE 444,962 420,109 (24,853) 94% UTILITIES 454,500 211,653 (242,847) 47% REPAIRS & MAINTENANCE 331,397 138,470 (192,927) 42% MISCELLANEOUS 327,242 147,348 (179,894) 45% INTERGOVERNMENTAL SERVICES 8,218,704 5,797,534 (2,421,170) 71% ECA CONTINGENCY RESERVE 250,000 80,635 (169,365) 32% EXCISE TAXES 5,200 2,585 (2,615) 50% INTERFUND TRANSFER (to 009,116,117,125,617)899,623 419,926 (479,697) 47% MACHINERY/EQUIPMENT 17,144 - (17,144) 0% GENERAL OBLIGATION BOND PRINCIPAL 1,084,062 - (1,084,062) 0% CAPITAL LEASES AND INSTALLMENT PURCHASES 63,380 63,380 (0) 100% OTHER DEBT - - - 0% INTEREST ON LONG-TERM EXTERNAL DEBT 296,838 149,706 (147,132) 50% DEBT ISSUE COSTS 5,000 1,125 (3,875) 23% FISCAL AGENT FEES - - - 0% INTERFUND SERVICES 197,900 - (197,900) 0% INTERFUND FUEL - 55 55 0% INTERFUND SUPPLIES - - - 0% INTERFUND RENTAL 430,246 215,130 (215,116) 50% INTERFUND REPAIRS - 780 780 0% 33,263,672$ 16,874,568$ (16,389,104)$ 51% LEOFF-MEDICAL INS. RESERVE: BENEFITS 462,886$ 220,155$ (242,731)$ 48% In-Home LTC Claims 140,425 70,672 (69,753) 50% PROFESSIONAL SERVICES 16,500 7,186 (9,315) 44% MISCELLANEOUS - 250 250 0% 619,811$ 298,263$ (321,548)$ 48% DRUG ENFORCEMENT FUND: SUPPLIES 200$ -$ (200)$ 0% FUEL CONSUMED 2,000 1,139 (861) 57% SMALL EQUIPMENT 5,000 - (5,000) 0% COMMUNICATIONS 2,233 1,014 (1,219) 45% REPAIR/MAINT 800 - (800) 0% MISCELLANEOUS 20,000 - (20,000) 0% INTERGOVTL SVC 50,000 9,928 (40,072) 20% 80,233$ 12,081$ (68,152)$ 15% EXPENDITURES BY FUND - DETAIL CITY OF EDMONDS Packet Page 330 of 393 14 Page 2 of 5 Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used STREET FUND: SALARIES AND WAGES 474,924$ 253,765$ (221,159)$ 53% OVERTIME 18,400 18,782 382 102% BENEFITS 191,707 114,305 (77,402) 60% UNIFORMS 7,000 4,414 (2,586) 63% SUPPLIES 242,500 80,372 (162,128) 33% SMALL EQUIPMENT 24,000 11,550 (12,450) 48% PROFESSIONAL SERVICES 32,700 16,408 (16,292) 50% COMMUNICATIONS 3,000 1,908 (1,092) 64% TRAVEL 1,000 - (1,000) 0% RENTAL/LEASE 1,500 1,393 (107) 93% INSURANCE 93,719 93,305 (414) 100% UTILITIES 261,100 105,268 (155,832) 40% REPAIRS & MAINTENANCE 25,500 4,479 (21,021) 18% MISCELLANEOUS 6,000 5,855 (146) 98% INTERGOVERNMENTAL SERVICES 6,000 511 (5,489) 9% GENERAL OBLIGATION BOND PRINCIPAL 38,954 - (38,954) 0% INTEREST ON LONG-TERM EXTERNAL DEBT 6,200 3,100 (3,100) 50% FISCAL AGENT FEES - - - 0% INTERFUND RENTAL 190,944 95,472 (95,472) 50% 1,625,148$ 810,886$ (814,262)$ 50% COMBINED STREET CONST/IMPROVE: PROFESSIONAL SERVICES 846,180$ 494,142$ (352,038)$ 58% INTERFUND TRANSFER OUT (to 112, 132)53,497 41,694 (11,803) 78% LAND 231,022 - (231,022) 0% CONST SURFACE CONST PROJECTS 763,300 1,700 (761,600) 0% INTERGOVERNMENTAL LOANS 72,202 72,201 (1) 100% INTEREST ON INTERGOVERNMENTAL LOANS 4,841 4,840 (1) 100% INTERFUND SERVICES 136,386 68,067 (68,319) 50% 2,107,428$ 682,645$ (1,424,783)$ 32% MULTIMODAL TRANSPORTATION FD: PROFESSIONAL SVC -$ -$ -$ 0% INTERFUND TRANSFER - - - 0% -$ -$ -$ 0% BUILDING MAINTENANCE: SUPPLIES 10,000$ -$ (10,000)$ 0% PROFESSIONAL SERVICES 40,000 1,000 (39,000) 3% REPAIRS & MAINTENANCE 195,000 - (195,000) 0% MISCELLANEOUS - - - 0% INTERFUND TRANSFER - - - 0% 245,000$ 1,000$ (244,000)$ 0% MUNICIPAL ARTS ACQUIS. FUND: SUPPLIES 4,200$ 143$ (4,057)$ 3% SMALL EQUIPMENT 1,000 523 (477) 52% PROFESSIONAL SERVICES 110,500 5,157 (105,343) 5% TRAVEL 50 10 (40) 20% ADVERTISING 4,000 - (4,000) 0% RENTAL/LEASE 1,000 - (1,000) 0% REPAIRS & MAINTENANCE 300 - (300) 0% MISCELLANEOUS 10,500 2,081 (8,419) 20% INTERFUND TRANSFER (to 117.300)3,000 - (3,000) 0% 134,550$ 7,913$ (126,637)$ 6% CITY OF EDMONDS EXPENDITURES BY FUND - DETAIL Packet Page 331 of 393 15 Page 3 of 5 Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used HOTEL/MOTEL TAX REVENUE FUND PROFESSIONAL SERVICES 10,000$ 4,209$ (5,792)$ 42% ADVERTISING 35,000 13,554 (21,446) 39% MISCELLANEOUS 2,500 - (2,500) 0% TRANSFER TO FUND 623 26,250 2,000 (24,250) 8% 73,750$ 19,762$ (53,988)$ 27% EMPLOYEE PARKING PERMIT FUND: SUPPLIES 1,000$ -$ (1,000)$ 0% INTERFUND TRANSFER (to 001)25,086 12,543 (12,543) 50% 26,086$ 12,543$ (13,543)$ 48% YOUTH SCHOLARSHIP FUND: MISCELLANEOUS 4,000$ 2,884$ (1,116)$ 72% 4,000$ 2,884$ (1,116)$ 72% TOURISM PROMOTIONAL FUND/ARTS: PROFESSIONAL SVC 10,500$ 33$ (10,467)$ 0% ADVERTISING 4,500 3,830 (670) 85% MISCELLANEOUS 4,000 - (4,000) 0% 19,000$ 3,863$ (15,137)$ 20% REAL ESTATE EXCISE TAX 2: SUPPLIES 36,000$ 23,136$ (12,864)$ 64% PROFESSIONAL SERVICES 617,000 67,813 (549,187) 11% REPAIRS & MAINTENANCE 100,000 1,544 (98,456) 2% INTERFUND TRANSFER (to 117,132)199,000 - (199,000) 0% CONSTRUCTION PROJECTS 103,000 - (103,000) 0% INTERFUND SERVICES - - - 0% 1,055,000$ 92,493$ (962,507)$ 9% REAL ESTATE EXCISE TAX 1, PARKS ACQ: MISCELLANEOUS -$ -$ -$ 0% TRANSFER TO FUND 234 68,080 16,540 (51,540) 24% 1998 REF BOND PRINCIPAL 502,163 - (502,163) 0% 2001 BONDS, B - INTEREST 127,474 63,737 (63,737) 50% FISCAL AGENT FEES - - - 0% 697,717$ 80,277$ (617,440)$ 12% GIFTS CATALOG FUND: SUPPLIES 6,275$ 1,202$ (5,073)$ 19% PROFESSIONAL SERVICES 4,000 - (4,000) 0% INTERFUND TRANSFER (to 132)2,000 - (2,000) 0% 12,275$ 1,202$ (11,073)$ 10% SPECIAL PROJECTS FUND: PROFESSIONAL SERVICES 83,500$ 1,833$ (81,667)$ 2% CONSTRUCTION 400,000 - (400,000) 0% 483,500$ 1,833$ (481,667)$ 0% CEMETERY MAINTENANCE/IMPROVEMENT: SALARIES AND WAGES 71,107$ 33,815$ (37,292)$ 48% OVERTIME 3,500 1,690 (1,810) 48% BENEFITS 32,926 16,122 (16,804) 49% UNIFORMS 1,000 - (1,000) 0% SUPPLIES 7,000 2,516 (4,484) 36% SUPPLIES PURCHASED FOR INVENTORY/RESALE 20,000 11,692 (8,308) 58% PROFESSIONAL SERVICES 1,000 200 (800) 20% COMMUNICATIONS 1,412 582 (830) 41% TRAVEL 1,000 - (1,000) 0% ADVERTISING 3,000 869 (2,131) 29% UTILITIES 3,800 1,431 (2,369) 38% REPAIRS & MAINTENANCE 500 - (500) 0% MISCELLANEOUS 1,000 1,915 915 192% MACHINERY/EQUIPMENT 17,500 - (17,500) 0% INTERFUND SERVICES - - - 0% INTERFUND RENTAL 7,260 3,630 (3,630) 50% 172,005$ 74,463$ (97,542)$ 43% CITY OF EDMONDS EXPENDITURES BY FUND - DETAIL Packet Page 332 of 393 16 Page 4 of 5 Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used PARKS CONSTRUCTION FUND: SUPPLIES -$ 72,039$ 72,039$ 0% PROFESSIONAL SERVICES 63,000 39,218 (23,782) 62% CONSTRUCTION PROJECTS 1,324,000 188,540 (1,135,460) 14% INTERFUND SERVICES 10,000 19,276 9,276 193% 1,397,000$ 319,073$ (1,077,927)$ 23% PARKS TRUST FUND: INTERFUND TRANSFER 6,930$ 6,930$ -$ 100% 6,930$ 6,930$ -$ 100% SISTER CITY COMMISSION: SUPPLIES 500$ -$ (500)$ 0% STUDENT TRIP 2,600 - (2,600) 0% MISCELLANEOUS 1,500 1,592 92 106% 4,600$ 1,592$ (3,008)$ 35% LID FUND CONTROL INTERFUND TRANSFER (to 213)151,500$ 106,000$ (45,500)$ 70% 151,500$ 106,000$ (45,500)$ 70% LIMITED TAX G.O. BOND FUND: 2002 BOND PRINCIPAL 205,000$ -$ (205,000)$ 0% 2002 BOND INTEREST 273,573 136,786 (136,787) 50% 478,573$ 136,786$ (341,787)$ 29% COMBINED UTILITY OPERATION: SALARIES AND WAGES 2,791,123$ 1,338,766$ (1,452,357)$ 48% OVERTIME 117,180 61,436 (55,744) 52% BENEFITS 1,113,707 563,673 (550,034) 51% UNIFORMS 28,650 13,994 (14,656) 49% SUPPLIES 675,015 293,520 (381,495) 43% FUEL CONSUMED 150,723 87,841 (62,882) 58% WATER PURCHASED FOR RESALE 1,410,000 504,811 (905,189) 36% SUPPLIES PURCHASED FOR INVENTORY/RESALE 143,000 51,916 (91,084) 36% SMALL EQUIPMENT 25,500 1,859 (23,641) 7% PROFESSIONAL SERVICES 228,808 60,347 (168,461) 26% COMMUNICATIONS 72,200 32,121 (40,079) 44% TRAVEL 18,600 158 (18,442) 1% ADVERTISING 3,560 605 (2,955) 17% RENTAL/LEASE 16,300 7,919 (8,381) 49% INSURANCE 288,211 242,229 (45,982) 84% UTILITIES 999,853 372,110 (627,743) 37% REPAIRS & MAINTENANCE 131,930 44,523 (87,407) 34% MISCELLANEOUS 592,880 301,867 (291,013) 51% INTERGOVERNMENTAL SERVICES 667,900 78,497 (589,403) 12% INTERFUND TAXES 1,548,996 747,156 (801,840) 48% INTERFUND TRANSFER (to 412,414)1,852,811 70,205 (1,782,606) 4% LAND - - - 0% BUILDINGS - - - 0% MACHINERY/EQUIPMENT - - - 0% GENERAL OBLIGATION BOND PRINCIPAL 111,862 - (111,862) 0% REVENUE BOND PRINCIPAL 1,202,102 - (1,202,102) 0% INTERGOVERNMENTAL LOANS 180,398 181,966 1,568 101% INTEREST ON LONG-TERM EXTERNAL DEBT 159,710 238,122 78,412 149% DEBT ISSUE COSTS 33,104 2,759 (30,345) 8% FISCAL AGENT FEES - 272 272 0% INTERFUND SERVICES 818,454 386,275 (432,180) 47% INTERFUND RENTAL 407,150 203,574 (203,576) 50% INTERFUND REPAIRS - - - 0% 15,789,727$ 5,888,521$ (9,901,206)$ 37% CITY OF EDMONDS EXPENDITURES BY FUND - DETAIL Packet Page 333 of 393 17 Page 5 of 5 Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used COMBINED UTILITY CONST/IMPROVE: PROFESSIONAL SERVICES 1,774,861$ 249,122$ (1,525,739)$ 14% INTERFUND TRANSFER (to 112,117,132,412.300)496,111 - (496,111) 0% LAND 3,500 - (3,500) 0% CONSTRUCTION PROJECTS 8,102,386 970,853 (7,131,533) 12% INTERFUND SERVICES 570,821 315,188 (255,633) 55% 10,947,679$ 1,535,163$ (9,412,516)$ 14% CAPITAL IMPROVEMENTS RESERVE: PROFESSIONAL SERVICES 85,000$ 204,907$ 119,907$ 241% CONSTRUCTION PROJECTS 1,226,012 72,752 (1,153,260) 6% GENERAL OBLIGATION BOND PRINCIPAL 85,888 - (85,888) 0% REVENUE BONDS 52,626 - (52,626) 0% INTERGOVERNMENTAL LOANS 34,875 34,875 - 100% INTEREST ON LONG-TERM DEBT 98,987 45,643 (53,344) 46% FISCAL AGENT FEES - 7 7 0% 1,583,388$ 358,184$ (1,225,204)$ 23% EQUIPMENT RENTAL FUND: SALARIES AND WAGES 218,537$ 106,818$ (111,719)$ 49% OVERTIME 2,000 91 (1,909) 5% BENEFITS 100,670 51,378 (49,292) 51% UNIFORMS 1,000 441 (559) 44% SUPPLIES 76,000 36,392 (39,608) 48% FUEL CONSUMED 1,000 674 (326) 67% SUPPLIES PURCHASED FOR INVENTORY/RESALE 320,510 157,216 (163,294) 49% SMALL EQUIPMENT 10,000 4,778 (5,222) 48% PROFESSIONAL SERVICES 1,000 322 (678) 32% COMMUNICATIONS 3,500 700 (2,800) 20% TRAVEL 500 - (500) 0% ADVERTISING 500 - (500) 0% RENTAL/LEASE 3,500 644 (2,856) 18% INSURANCE 23,261 32,530 9,269 140% UTILITIES 14,000 6,576 (7,424) 47% REPAIRS & MAINTENANCE 85,000 15,290 (69,710) 18% MISCELLANEOUS 7,500 3,926 (3,574) 52% INTERGOVERNMENTAL SERVICES 2,500 682 (1,818) 27% MACHINERY/EQUIPMENT 420,000 86,069 (333,931) 20% INTERFUND SERVICES 20,000 - (20,000) 0% INTERFUND RENTAL 10,356 5,178 (5,178) 50% 1,321,334$ 509,705$ (811,629)$ 39% FIREMEN'S PENSION FUND: BENEFITS 66,515$ 29,215$ (37,300)$ 44% PENSION AND DISABILITY PAYMENTS 52,500 22,604 (29,896) 43% PROF SERVICES 4,500 1,065 (3,436) 24% 123,515$ 52,884$ (70,631)$ 43% TRANSPORTATION BENEFIT DISTRICT: INSURANCE 5,000$ 5,000$ -$ 100% INTERGOVTL SERVICES 595,000 49,936 (545,064) 8% INTERFUND TRANSFER (To 111)- 267,280 267,280 0% 600,000$ 322,216$ (277,784)$ 54% TOTAL EXPENDITURE ALL FUNDS 73,023,421$ 28,213,730$ (44,809,691)$ 39% EXPENDITURES BY FUND - DETAIL CITY OF EDMONDS Packet Page 334 of 393 18 This page is intentionally left blank. Packet Page 335 of 393 19 Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used CITY COUNCIL 269,812$ 128,336$ (141,476)$ 48% OFFICE OF MAYOR 253,184 113,618 (139,566) 45% HUMAN RESOURCES 286,799 114,330 (172,469) 40% MUNICIPAL COURT 779,038 365,837 (413,201) 47% ECONOMIC DEVELOPMENT 138,880 55,227 (83,653) 40% CITY CLERK 609,840 246,012 (363,828) 40% ADMINISTRATIVE SERVICES 1,412,575 685,600 (726,975) 49% CITY ATTORNEY 495,000 234,108 (260,892) 47% NON-DEPARTMENTAL 11,399,538 5,348,836 (6,050,702) 47% POLICE SERVICES 9,165,244 4,149,872 (5,015,372) 45% COMMUNITY SERVICES 326,930 157,098 (169,832) 48% DEVELOPMENT SERVICES 1,658,272 774,015 (884,257) 47% PARKS & RECREATION 3,504,196 1,503,266 (2,000,930) 43% PUBLIC WORKS 1,612,816 795,755 (817,061) 49% FACILITIES MAINTENANCE 1,351,548 646,963 (704,585) 48% 33,263,672$ 15,318,873$ (17,944,799)$ 46% Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used STORM DRAINAGE UTILITY 2,277,822$ 897,065$ (1,380,757)$ 39% WATER 5,387,537 2,130,307 (3,257,230) 40% SEWER 4,566,027 1,262,571 (3,303,456) 28% TREATMENT PLANT 3,558,341 1,598,578 (1,959,763) 45% 15,789,727$ 5,888,521$ (9,901,206)$ 37% EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN SUMMARY EXPENDITURES - COMBINED UTILITY- BY DEPARTMENT IN SUMMARY CITY OF EDMONDS CITY OF EDMONDS Packet Page 336 of 393 20 This page is intentionally left blank. Packet Page 337 of 393 21 Page 1 of 4 Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used CITY COUNCIL SALARIES 105,665$ 53,379$ (52,286)$ 51% OVERTIME 7,240 3,140 (4,100) 43% BENEFITS 69,902 36,174 (33,728) 52% SUPPLIES 1,525 349 (1,176) 23% PROFESSIONAL SVC 50,000 26,541 (23,459) 53% COMMUNICATIONS 3,000 1,318 (1,682) 44% TRAVEL 2,500 879 (1,621) 35% RENTAL/LEASE 480 245 (235) 51% REPAIRS/MAINT 1,500 - (1,500) 0% MISCELLANEOUS 28,000 6,310 (21,690) 23% 269,812$ 128,336$ (141,476)$ 48% OFFICE OF MAYOR SALARIES 193,896$ 88,855$ (105,041)$ 46% OVERTIME - - - 0% BENEFITS 49,188 20,675 (28,513) 42% SUPPLIES 2,000 388 (1,612) 19% PROFESSIONAL SVC 1,000 - (1,000) 0% COMMUNICATION 1,400 567 (833) 41% TRAVEL 700 295 (405) 42% RENTAL/LEASE 1,500 1,327 (173) 88% REPAIR/MAINT 500 - (500) 0% MISCELLANEOUS 3,000 1,510 (1,490) 50% 253,184$ 113,618$ (139,566)$ 45% HUMAN RESOURCES SALARIES 144,191$ 43,664$ (100,527)$ 30% OVERTIME - - - 0% BENEFITS 32,098 16,400 (15,698) 51% SUPPLIES 2,500 1,366 (1,134) 55% SMALL EQUIPMENT 100 - (100) 0% PROFESSIONAL SVC 77,500 43,607 (33,893) 56% COMMUNICATIONS 500 183 (317) 37% TRAVEL 500 - (500) 0% ADVERTISING 9,000 683 (8,317) 8% RENTAL/LEASE 2,000 1,252 (748) 63% REPAIR/MAINT 6,000 4,820 (1,180) 80% MISCELLANEOUS 12,410 2,355 (10,055) 19% 286,799$ 114,330$ (172,469)$ 40% MUNICIPAL COURT SALARIES 486,685$ 233,187$ (253,498)$ 48% OVERTIME 1,400 439 (961) 31% BENEFITS 172,053 86,686 (85,368) 50% SUPPLIES 14,500 5,151 (9,349) 36% SMALL EQUIPMENT 6,500 - (6,500) 0% PROFESSIONAL SERVICES 66,600 26,575 (40,025) 40% COMMUNICATIONS 2,600 1,056 (1,544) 41% TRAVEL 2,500 970 (1,530) 39% RENTAL/LEASE 1,300 308 (992) 24% REPAIR/MAINT 2,200 795 (1,405) 36% MISCELLANEOUS 22,350 10,578 (11,772) 47% INTERGOVTL SVC 350 92 (258) 26% 779,038$ 365,837$ (413,201)$ 47% EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN DETAIL CITY OF EDMONDS Packet Page 338 of 393 22 Page 2 of 4 Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used ECONOMIC DEVELOPMENT BENEFITS -$ 13$ 13$ 0% SUPPLIES 500 1,179 679 236% SMALL EQUIPMENT 300 - (300) 0% PROFESSIONAL SERVICES 103,680 51,835 (51,845) 50% COMMUNICATIONS 400 28 (372) 7% TRAVEL 1,000 - (1,000) 0% ADVERTISING 30,000 727 (29,273) 2% MISCELLANEOUS 3,000 1,445 (1,555) 48% 138,880$ 55,227$ (83,653)$ 40% CITY CLERK SALARIES AND WAGES 302,054$ 142,876$ (159,178)$ 47% BENEFITS 90,045 44,953 (45,092) 50% SUPPLIES 13,760 5,188 (8,572) 38% PROFESSIONAL SERVICES 89,377 7,239 (82,138) 8% COMMUNICATIONS 52,067 19,809 (32,258) 38% TRAVEL 1,000 - (1,000) 0% ADVERTISING 23,690 11,080 (12,610) 47% RENTAL/LEASE 27,310 8,218 (19,092) 30% REPAIRS & MAINTENANCE 8,037 4,862 (3,175) 60% MISCELLANEOUS 2,500 1,788 (712) 72% 609,840$ 246,012$ (363,828)$ 40% ADMINISTRATIVE SERVICES SALARIES 741,281$ 354,550$ (386,731)$ 48% OVERTIME 8,100 4,900 (3,200) 60% BENEFITS 222,830 110,050 (112,780) 49% SUPPLIES 60,690 22,141 (38,549) 36% SMALL EQUIPMENT 63,500 54,618 (8,882) 86% PROFESSIONAL SERVICES 71,842 21,088 (50,754) 29% COMMUNICATIONS 60,220 30,577 (29,643) 51% TRAVEL 4,800 1,052 (3,748) 22% RENTAL/LEASE 3,300 2,457 (843) 74% REPAIR/MAINT 164,720 74,639 (90,081) 45% MISCELLANEOUS 10,500 9,132 (1,368) 87% INTERFUND RENTAL 792 396 (396) 50% 1,412,575$ 685,600$ (726,975)$ 49% CITY ATTORNEY PROFESSIONAL SVC 495,000$ 233,908$ (261,092)$ 47% MISC PROSECUTOR - 200 200 0% 495,000$ 234,108$ (260,892)$ 47% NON-DEPARTMENTAL SALARIES 100,000$ -$ (100,000)$ 0% BENEFITS - UNEMPLOYMENT 70,000 23,142 (46,858) 33% PROFESSIONAL SVC 294,962 110,769 (184,193) 38% COMMUNICATIONS - 3 3 0% RENTAL/LEASE 3,700 3,600 (100) 97% INSURANCE 444,962 420,109 (24,853) 94% MISCELLANEOUS 72,300 40,023 (32,277) 55% INTERGOVT SVC 7,611,611 4,033,832 (3,577,779) 53% ECA LOAN PAYMENT 250,000 80,635 (169,365) 32% EXCISE TAXES 5,200 2,585 (2,615) 50% INTERFUND TRANSFERS 899,623 419,926 (479,697) 47% GENERAL OBLIGATION BOND 1,084,062 - (1,084,062) 0% INSTALLMENT PURCHASES 63,380 63,380 (0) 100% OTHER DEBT - - - 0% INTEREST ON LONG-TERM DEBT 296,838 149,706 (147,132) 50% DEBT ISSUANCE COSTS 5,000 1,125 (3,875) 23% FISCAL AGENT FEES - - - 0% INTERFUND SERVICES 197,900 - (197,900) 0% 11,399,538$ 5,348,836$ (6,050,702)$ 47% CITY OF EDMONDS EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN DETAIL Packet Page 339 of 393 23 Page 3 of 4 Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used POLICE SERVICES SALARIES 5,400,738$ 2,561,535$ (2,839,203)$ 47% OVERTIME 420,000 181,429 (238,572) 43% HOLIDAY BUYBACK 179,687 2,526 (177,161) 1% BENEFITS 1,899,147 891,075 (1,008,072) 47% UNIFORMS 53,570 24,230 (29,340) 45% SUPPLIES 95,900 26,429 (69,471) 28% SMALL EQUIPMENT 14,300 3,621 (10,679) 25% PROFESSIONAL SVC 95,200 47,201 (47,999) 50% COMMUNICATIONS 33,592 12,414 (21,178) 37% TRAVEL 26,300 6,526 (19,774) 25% ADVERTISING 375 66 (309) 18% RENTAL/LEASE 18,000 7,747 (10,253) 43% REPAIR/MAINT 16,115 3,182 (12,933) 20% MISCELLANEOUS 55,512 17,761 (37,751) 32% INTERGOVTL SVC 536,048 202,916 (333,132) 38% INTERFUND FUEL-BOAT - 55 55 0% INTERFUND RENTAL 320,760 160,380 (160,380) 50% INTERFUND REPAIRS - 780 780 0% 9,165,244$ 4,149,872$ (5,015,372)$ 45% COMMUNITY SERVICES ADMIN SALARIES 212,854$ 104,616$ (108,238)$ 49% BENEFITS 60,622 31,060 (29,562) 51% SUPPLIES 1,000 168 (832) 17% SMALL EQUIPMENT 500 - (500) 0% PROFESSIONAL SVC 45,924 18,931 (26,993) 41% COMMUNICATIONS 1,090 386 (704) 35% TRAVEL 1,000 - (1,000) 0% ADVERTISING 500 - (500) 0% RENTAL/LEASE 1,320 1,259 (61) 95% REPAIR/MAINT 500 - (500) 0% MISCELLANEOUS 1,000 365 (635) 37% INTERFUND RENTAL 620 312 (308) 50% 326,930$ 157,098$ (169,832)$ 48% DEVELOPMENT SERVICES/PLANNING SALARIES 1,071,681$ 517,847$ (553,834)$ 48% OVERTIME 2,800 2,128 (672) 76% BENEFITS 374,639 185,003 (189,636) 49% UNIFORMS 320 - (320) 0% SUPPLIES 17,510 5,681 (11,829) 32% MINOR EQUIPMENT 2,300 231 (2,069) 10% PROFESSIONAL SVC 116,890 32,860 (84,030) 28% COMMUNICATIONS 4,630 2,745 (1,885) 59% TRAVEL 3,500 93 (3,407) 3% ADVERTISING 4,250 1,173 (3,077) 28% RENTAL/LEASE 22,500 10,588 (11,912) 47% REPAIRS & MAINTENANCE 2,000 606 (1,394) 30% MISCELLANEOUS 27,600 11,231 (16,369) 41% INTERFUND RENTAL 7,652 3,828 (3,824) 50% 1,658,272$ 774,015$ (884,257)$ 47% ENGINEERING SALARIES 958,860$ 469,858$ (489,002)$ 49% OVERTIME 5,000 454 (4,546) 9% BENEFITS 321,636 165,721 (155,915) 52% UNIFORMS 450 - (450) 0% SUPPLIES - - - 0% MINOR EQUIPMENT 2,500 2,398 (102) 96% PROFESSIONAL SVC 5,000 2,596 (2,404) 52% COMMUNICATIONS 6,500 2,669 (3,831) 41% TRAVEL 620 210 (410) 34% ADVERTISING - - - 0% RENTAL/LEASE - - - 0% REPAIR/MAINT 1,800 895 (905) 50% MISCELLANEOUS 9,600 4,492 (5,108) 47% MACHINERY/EQUIPMENT - - - 0% INTERFUND RENTAL 6,740 3,372 (3,368) 50% 1,318,706$ 652,666$ (666,040)$ 49% CITY OF EDMONDS EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN DETAIL Packet Page 340 of 393 24 Page 4 of 4 Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used PARKS & RECREATION SALARIES 1,880,905$ 850,516$ (1,030,389)$ 45% OVERTIME 5,300 4,694 (606) 89% BENEFITS 571,640 287,059 (284,581) 50% UNIFORMS 6,540 1,692 (4,848) 26% SUPPLIES 145,026 49,527 (95,499) 34% MINOR EQUIPMENT 32,356 33,568 1,212 104% PROFESSIONAL SVC 339,666 62,238 (277,428) 18% COMMUNICATIONS 28,938 10,366 (18,572) 36% TRAVEL 6,140 424 (5,716) 7% ADVERTISING 3,852 1,873 (1,979) 49% RENTAL/LEASE 50,471 30,243 (20,228) 60% PUBLIC UTILITY 150,000 72,107 (77,893) 48% REPAIR/MAINT 52,025 22,675 (29,350) 44% MISCELLANEOUS 76,370 37,721 (38,649) 49% INTERGOVTL SVC 70,695 5,000 (65,695) 7% MACHINERY/EQUIPMENT 17,144 - (17,144) 0% INTERFUND RENTAL 67,128 33,564 (33,564) 50% 3,504,196$ 1,503,266$ (2,000,930)$ 43% PUBLIC WORKS SALARIES 208,578$ 104,641$ (103,937)$ 50% OVERTIME 200 - (200) 0% BENEFITS 64,638 32,084 (32,554) 50% SUPPLIES 5,100 2,592 (2,508) 51% PROFESSIONAL SERVICES 200 23 (177) 12% COMMUNICATIONS 1,100 585 (515) 53% TRAVEL 500 - (500) 0% RENTAL/LEASE 7,400 525 (6,875) 7% PUBLIC UTILITY 2,500 1,169 (1,331) 47% REPAIR/MAINT 1,000 - (1,000) 0% MISCELLANEOUS 1,000 522 (478) 52% INTERFUND RENTAL 1,894 948 (946) 50% 294,110$ 143,089$ (151,021)$ 49% FACILITIES MAINTENANCE SALARIES 592,852$ 303,768$ (289,084)$ 51% OVERTIME 8,500 936 (7,564) 11% BENEFITS 245,736 123,113 (122,623) 50% UNIFORMS 3,000 1,110 (1,890) 37% SUPPLIES 75,000 31,574 (43,426) 42% FUEL CONSUMED 700 - (700) 0% MINOR EQUIPMENT 8,000 1,257 (6,743) 16% PROFESSIONAL SERVICES - - - 0% TRAVEL - 35 35 0% COMMUNICATIONS 14,000 6,552 (7,448) 47% PUBLIC UTILITY 302,000 138,378 (163,622) 46% REPAIR/MAINT 75,000 25,996 (49,004) 35% MISCELLANEOUS 2,100 1,915 (185) 91% INTERFUND RENTAL 24,660 12,330 (12,330) 50% 1,351,548$ 646,963$ (704,585)$ 48% TOTAL GENERAL FUND EXPENDITURES 33,263,672$ 15,318,873$ (17,944,799)$ 46% CITY OF EDMONDS EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN DETAIL Packet Page 341 of 393 25 Page 1 of 2 Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used STORM DRAINAGE SALARIES 477,207$ 234,009$ (243,198)$ 49% OVERTIME 6,000 3,302 (2,698) 55% BENEFITS 195,826 94,756 (101,070) 48% UNIFORMS 6,500 3,839 (2,661) 59% SUPPLIES 58,005 18,998 (39,007) 33% MINOR EQUIPMENT 4,000 - (4,000) 0% PROFESSIONAL SERVICES 18,836 3,614 (15,222) 19% COMMUNICATIONS 3,200 700 (2,500) 22% TRAVEL 4,300 - (4,300) 0% ADVERTISING 500 - (500) 0% RENTAL/LEASE 7,500 704 (6,796) 9% INSURANCE 9,302 8,889 (413) 96% UTILITIES 10,000 4,441 (5,560) 44% REPAIR/MAINT 12,860 5,005 (7,855) 39% MISCELLANEOUS 78,500 49,378 (29,122) 63% INTERGOVT SERVICE 40,000 25,366 (14,634) 63% STORMWATER TAX 254,061 132,518 (121,543) 52% INTERFUND TRANSFER (to 412)200,000 - (200,000) 0% LAND - - - 0% BUILDINGS - - - 0% MACHINERY/EQUIPMENT - - - 0% GENERAL OBLIGATION BOND 108,298 - (108,298) 0% REVENUE BOND 274,182 - (274,182) 0% INTERGOVERNMENTAL LOAN 32,063 32,063 (1) 100% INTEREST ON LONG-TERM DEBT 81,478 88,129 6,651 108% DEBT ISSUE COSTS - - - 0% FISCAL AGENT FEES - 78 78 0% INTERFUND SERVICES 228,092 107,719 (120,373) 47% INTERFUND RENTAL 167,112 83,556 (83,556) 50% 2,277,822$ 897,065$ (1,380,757)$ 39% WATER SALARIES 715,880$ 330,583$ (385,297)$ 46% OVERTIME 24,180 10,345 (13,835) 43% BENEFITS 267,990 146,677 (121,313) 55% UNIFORMS 6,800 2,303 (4,497) 34% SUPPLIES 143,505 76,273 (67,232) 53% WATER PURCHASED FOR RESALE 1,410,000 504,811 (905,189) 36% SUPPLIES FOR INVENTORY/RESALE 140,000 51,916 (88,084) 37% SMALL EQUIPMENT 10,000 - (10,000) 0% PROFESSIONAL SVC 77,136 9,842 (67,294) 13% COMMUNICATIONS 30,000 14,663 (15,337) 49% TRAVEL 3,400 - (3,400) 0% ADVERTISING 560 - (560) 0% RENTAL/LEASE 1,500 3,915 2,415 261% INSURANCE 84,030 70,440 (13,590) 84% PUBLIC UTILITY 28,000 19,859 (8,141) 71% REPAIR/MAINT 24,160 6,916 (17,244) 29% RCP - MISCELLANEOUS 301,630 153,122 (148,508) 51% INTERGOVTL SVC 30,000 16,726 (13,274) 56% WATER TAX 824,935 382,218 (442,717) 46% INTERFUND TRANSFER-OUT (to 412)200,000 - (200,000) 0% GENERAL OBLIGATION BOND 1,980 - (1,980) 0% REVENUE BOND 623,007 - (623,007) 0% INTERGOVERNMENTAL LOANS 44,270 45,839 1,569 104% INTEREST ON LONG-TERM DEBT 48,565 121,818 73,253 251% AMORTIZED DEBT ISSUE COSTS 16,553 1,379 (15,174) 8% FISCAL AGENT FEES - 163 163 0% INTERFUND SVC 224,970 108,255 (116,715) 48% INTERFUND RENTAL 104,486 52,242 (52,244) 50% 5,387,537$ 2,130,307$ (3,257,230)$ 40% CITY OF EDMONDS EXPENDITURES - COMBINED UTILITY- BY DEPARTMENT IN DETAIL Packet Page 342 of 393 26 Page 2 of 2 Title 2012 Adopted Budget 6/30/2012 Expenditures Variance % Used SEWER SALARIES 434,516$ 222,341$ (212,175)$ 51% OVERTIME 17,000 10,129 (6,871) 60% BENEFITS 206,345 105,940 (100,405) 51% UNIFORMS 5,100 3,014 (2,086) 59% SUPPLIES 61,005 26,461 (34,544) 43% SEWER INVENTORY 3,000 - (3,000) 0% SMALL EQUIPMENT 6,000 1,511 (4,489) 25% PROFESSIONAL SVC 53,836 2,818 (51,018) 5% COMMUNICATIONS 30,000 12,432 (17,568) 41% TRAVEL 2,400 - (2,400) 0% ADVERTISING 500 - (500) 0% RENTAL/LEASE 1,800 1,999 199 111% INSURANCE 104,574 94,658 (9,916) 91% PUBLIC UTILITY 533,813 128,499 (405,314) 24% REPAIR/MAINT 16,860 7,076 (9,784) 42% MISCELLANEOUS 130,000 64,066 (65,934) 49% INTERGOVTL SVS 393,900 1,436 (392,464) 0% SEWER UTILITY TAX 470,000 232,420 (237,580) 49% INTERFUND TRANSFER (to 412, 414)1,452,811 70,205 (1,382,606) 5% GENERAL OBLIGATION BOND 1,584 - (1,584) 0% REVENUE BONDS 196,535 - (196,535) 0% INTERGOVERNMENTAL LOANS 104,065 104,065 (0) 100% INTEREST ON LONG-TERM DEBT 19,017 26,683 7,666 140% AMORTIZED DEBT ISSUE COSTS 16,551 1,379 (15,172) 8% FISCAL AGENT FEES - 28 28 0% INTERFUND SVC 176,571 81,290 (95,281) 46% INTERFUND RENTAL 128,244 64,122 (64,122) 50% INTERFUND REPAIR/MAINT - - - 0% 4,566,027$ 1,262,571$ (3,303,456)$ 28% TREATMENT PLANT SALARIES 1,163,520$ 551,832$ (611,688)$ 47% OVERTIME 70,000 37,660 (32,340) 54% BENEFITS 443,546 216,300 (227,246) 49% UNIFORMS 10,250 4,837 (5,413) 47% SUPPLIES 412,500 171,788 (240,712) 42% FUEL CONSUMED 150,723 87,841 (62,882) 58% SMALL EQUIPMENT 5,500 348 (5,152) 6% PROFESSIONAL SVC 79,000 44,074 (34,927) 56% COMMUNICATIONS 9,000 4,326 (4,674) 48% TRAVEL 8,500 158 (8,342) 2% ADVERTISING 2,000 605 (1,395) 30% RENTAL/LEASE 5,500 1,300 (4,200) 24% INSURANCE 90,305 68,242 (22,063) 76% UTILITIES 428,040 219,312 (208,728) 51% REPAIR/MAINT 78,050 25,526 (52,524) 33% MISCELLANEOUS 82,750 35,301 (47,449) 43% INTERGOVTL SVS 204,000 34,969 (169,031) 17% FISCAL AGENT FEES - 4 4 0% REVENUE BOND 108,378 - (108,378) 0% INTEREST ON LONG-TERM DEBT 10,650 1,492 (9,158) 14% INTERFUND SVC 188,821 89,011 (99,810) 47% INTERFUND RENTAL 7,308 3,654 (3,654) 50% 3,558,341$ 1,598,578$ (1,959,763)$ 45% Total Combined Utility Fund Expenditures 15,789,727$ 5,888,521$ (9,901,206)$ 37% CITY OF EDMONDS EXPENDITURES - COMBINED UTILITY- BY DEPARTMENT IN DETAIL Packet Page 343 of 393 27 General Fund Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 1,254,151$ 1,254,151$ 1,608,118$ 28.22% February 3,062,917 1,808,765 3,432,053 12.05% March 5,168,529 2,105,612 5,372,339 3.94% April 7,722,111 2,553,582 8,516,228 10.28% May 15,169,700 7,447,589 15,369,907 1.32% June 16,854,665 1,684,965 17,064,191 1.24% July 18,802,184 1,947,519 19,035,921 1.24% August 20,452,729 1,650,546 20,706,985 1.24% September 21,994,271 1,541,541 22,267,690 1.24% October 24,531,793 2,537,522 24,836,757 1.24% November 31,332,621 6,800,829 31,722,129 1.24% December 33,014,518 1,681,897 33,424,934 1.24% Real Estate Excise Tax Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 50,516$ 50,516$ 55,795$ 10.45% February 80,158 29,643 119,438 49.00% March 117,689 37,531 145,824 23.91% April 170,233 52,544 199,122 16.97% May 219,071 48,838 255,250 16.51% June 275,073 56,002 318,412 15.76% July 330,084 55,011 382,090 15.76% August 390,495 60,410 452,019 15.76% September 447,318 56,823 517,794 15.76% October 504,597 57,280 584,099 15.76% November 548,998 44,400 635,494 15.76% December 590,000 41,002 682,957 15.76% 2012 City of Edmonds, WA Monthly Revenue Summary-General Fund 2012 City of Edmonds, WA Monthly Revenue Summary-Real Estate Excise Tax 0 5000000 10000000 15000000 20000000 25000000 30000000 35000000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC General Fund Actuals/Trend Budget 0 100000 200000 300000 400000 500000 600000 700000 800000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Real Estate Excise Tax Actuals/Trend Budget Packet Page 344 of 393 28 Sales and Use Tax Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 375,013$ 375,013$ 396,472$ 5.72% February 850,350 475,338 880,438 3.54% March 1,188,451 338,101 1,236,580 4.05% April 1,538,704 350,253 1,614,832 4.95% May 1,953,189 414,485 2,037,398 4.31% June 2,321,894 368,705 2,436,804 4.95% July 2,693,818 371,925 2,827,135 4.95% August 3,130,679 436,861 3,285,617 4.95% September 3,516,951 386,272 3,691,005 4.95% October 3,912,817 395,866 4,106,462 4.95% November 4,351,601 438,784 4,566,962 4.95% December 4,724,183 372,582 4,957,983 4.95% Gas Utility Tax Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 123,772$ 123,772$ 109,321$ -11.68% February 253,656 129,883 232,788 -8.23% March 371,883 118,227 329,885 -11.29% April 470,918 99,035 433,268 -8.00% May 554,498 83,580 502,369 -9.40% June 617,198 62,700 552,855 -10.42% July 663,083 45,884 593,956 -10.42% August 695,629 32,546 623,109 -10.42% September 725,807 30,179 650,142 -10.42% October 757,941 32,134 678,926 -10.42% November 812,573 54,632 727,862 -10.42% December 892,381 79,808 799,350 -10.42% 2012 City of Edmonds, WA Monthly Revenue Summary-Sales and Use Tax 2012 City of Edmonds, WA Monthly Revenue Summary-Gas Utility Tax 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 4500000 5000000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Sales and Use Tax Actuals/Trend Budget 0 100000 200000 300000 400000 500000 600000 700000 800000 900000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Gas Utility Tax Actuals/Trend Budget Packet Page 345 of 393 29 Telephone Utility Tax Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 86,875$ 86,875$ 129,337$ 48.88% February 208,469 121,594 222,717 6.83% March 342,214 133,745 353,214 3.21% April 435,440 93,226 485,917 11.59% May 553,336 117,896 672,856 21.60% June 648,289 94,953 792,936 22.31% July 776,209 127,920 949,397 22.31% August 899,335 123,126 1,099,995 22.31% September 992,632 93,297 1,214,109 22.31% October 1,142,349 149,717 1,397,231 22.31% November 1,227,014 84,665 1,500,787 22.31% December 1,390,242 163,228 1,700,434 22.31% Electric Utility Tax Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 151,744$ 151,744$ 159,973$ 5.42% February 319,668 167,924 322,487 0.88% March 474,035 154,367 489,585 3.28% April 631,016 156,981 638,942 1.26% May 768,814 137,798 783,961 1.97% June 881,589 112,775 892,229 1.21% July 988,356 106,767 1,000,285 1.21% August 1,080,682 92,325 1,093,724 1.21% September 1,179,059 98,377 1,193,289 1.21% October 1,264,304 85,245 1,279,562 1.21% November 1,371,246 106,942 1,387,795 1.21% December 1,473,880 102,634 1,491,668 1.21% 2012 City of Edmonds, WA Monthly Revenue Summary-Telephone Utility Tax 2012 City of Edmonds, WA Monthly Revenue Summary-Electric Utility Tax 0 250000 500000 750000 1000000 1250000 1500000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Telephone Utility Tax Actuals/Trend Budget 0 200000 400000 600000 800000 1000000 1200000 1400000 1600000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Electric Utility Tax Actuals/Trend Budget Packet Page 346 of 393 30 General Fund Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 3,440,120$ 3,440,120$ 2,080,142$ -39.53% February 5,703,048 2,262,927 5,514,121 -3.31% March 8,126,822 2,423,775 7,666,998 -5.66% April 11,051,229 2,924,407 10,886,288 -1.49% May 13,141,711 2,090,482 12,749,656 -2.98% June 16,356,355 3,214,644 16,874,568 3.17% July 19,278,348 2,921,993 19,889,137 3.17% August 21,497,043 2,218,695 22,178,127 3.17% September 24,463,580 2,966,536 25,238,650 3.17% October 26,597,041 2,133,462 27,439,706 3.17% November 29,099,082 2,502,040 30,021,017 3.17% December 33,263,672 4,164,590 34,317,553 3.17% Non-Departmental Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 2,047,429$ 2,047,429$ 527,429$ -74.24% February 2,299,635 252,206 2,317,066 0.76% March 2,873,705 574,070 2,771,982 -3.54% April 3,758,093 884,388 4,360,812 16.04% May 3,985,119 227,026 4,563,592 14.52% June 5,851,882 1,866,764 6,904,530 17.99% July 6,655,043 803,160 7,852,165 17.99% August 6,686,270 31,227 7,889,009 17.99% September 7,564,704 878,434 8,925,457 17.99% October 7,683,657 118,953 9,065,808 17.99% November 7,973,338 289,682 9,407,598 17.99% December 11,399,538 3,426,200 13,450,109 17.99% 2012 City of Edmonds, WA Monthly Expenditure Report-General Fund 2012 City of Edmonds, WA Monthly Expenditure Report-Non-Departmental 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 9000000 10000000 11000000 12000000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Non-Departmental Actuals/Trend Budget 0 3000000 6000000 9000000 12000000 15000000 18000000 21000000 24000000 27000000 30000000 33000000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC General Fund Actuals/Trend Budget Packet Page 347 of 393 31 City Council Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 19,762$ 19,762$ 18,170$ -8.06% February 41,832 22,070 40,409 -3.40% March 64,009 22,177 62,230 -2.78% April 87,150 23,141 77,262 -11.35% May 105,041 17,891 103,859 -1.13% June 125,476 20,435 128,336 2.28% July 149,760 24,284 153,174 2.28% August 172,297 22,538 176,225 2.28% September 191,074 18,777 195,431 2.28% October 219,806 28,731 224,817 2.28% November 240,319 20,514 245,798 2.28% December 269,812 29,493 275,963 2.28% Office of Mayor Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 21,049$ 21,049$ 20,420$ -2.99% February 42,489$ 21,440$ 40,120$ -5.58% March 63,849$ 21,360$ 58,059$ -9.07% April 84,582$ 20,733$ 75,981$ -10.17% May 105,135$ 20,553$ 94,870$ -9.76% June 125,384$ 20,249$ 113,618$ -9.38% July 147,384$ 22,000$ 133,554$ -9.38% August 168,135$ 20,750$ 152,357$ -9.38% September 188,520$ 20,385$ 170,829$ -9.38% October 211,220$ 22,701$ 191,400$ -9.38% November 232,824$ 21,603$ 210,976$ -9.38% December 253,184$ 20,360$ 229,426$ -9.38% 2012 City of Edmonds, WA Monthly Expenditure Report-City Council 2012 City of Edmonds, WA Monthly Expenditure Report-Office of Mayor 0 50000 100000 150000 200000 250000 300000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC City Council Actuals/Trend Budget 0 50000 100000 150000 200000 250000 300000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Office of Mayor Actuals/Trend Budget Packet Page 348 of 393 32 Human Resources Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 22,108$ 22,108$ 15,139$ -31.52% February 45,111 23,004 27,098 -39.93% March 70,318 25,207 56,071 -20.26% April 94,775 24,457 71,795 -24.25% May 117,492 22,717 96,673 -17.72% June 140,095 22,602 114,330 -18.39% July 162,181 22,086 132,354 -18.39% August 184,290 22,109 150,397 -18.39% September 210,792 26,502 172,025 -18.39% October 231,031 20,240 188,542 -18.39% November 253,730 22,699 207,066 -18.39% December 286,799 33,069 234,053 -18.39% Municipal Court Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 56,684$ 56,684$ 57,047$ 0.64% February 119,103 62,420 121,057 1.64% March 185,043 65,939 183,959 -0.59% April 250,566 65,524 245,061 -2.20% May 314,083 63,516 302,900 -3.56% June 381,809 67,726 365,837 -4.18% July 443,918 62,110 425,349 -4.18% August 510,114 66,196 488,775 -4.18% September 573,477 63,363 549,488 -4.18% October 638,600 65,123 611,886 -4.18% November 704,816 66,216 675,333 -4.18% December 779,038 74,222 746,450 -4.18% 2012 City of Edmonds, WA Monthly Expenditure Report-Human Resources 2012 City of Edmonds, WA Monthly Expenditure Report-Municipal Court 0 100000 200000 300000 400000 500000 600000 700000 800000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Municipal Court Actuals/Trend Budget 0 50000 100000 150000 200000 250000 300000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Human Resources Actuals/Trend Budget Packet Page 349 of 393 33 Economic Development/Community Services Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 30,372$ 30,372$ 22,962$ -24.40% February 73,754 43,382 59,724 -19.02% March 114,246 40,492 92,678 -18.88% April 149,965 35,719 132,111 -11.91% May 187,341 37,376 178,589 -4.67% June 222,700 35,358 212,324 -4.66% July 269,288 46,588 256,742 -4.66% August 301,418 32,130 287,374 -4.66% September 338,442 37,024 322,673 -4.66% October 377,797 39,355 360,195 -4.66% November 410,485 32,688 391,360 -4.66% December 465,810 55,325 444,108 -4.66% City Clerk Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 50,352$ 50,352$ 38,375$ -23.79% February 97,512 47,161 76,194 -21.86% March 151,688 54,176 119,740 -21.06% April 200,724 49,035 158,147 -21.21% May 257,542 56,818 197,762 -23.21% June 305,615 48,073 246,012 -19.50% July 357,211 51,597 287,546 -19.50% August 408,044 50,833 328,465 -19.50% September 458,834 50,790 369,349 -19.50% October 503,062 44,229 404,952 -19.50% November 553,417 50,355 445,486 -19.50% December 609,840 56,423 490,905 -19.50% 2012 City of Edmonds, WA Monthly Expenditure Report-Economic Development/Community Services 2012 City of Edmonds, WA Monthly Expenditure Report-City Clerk 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 500000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Economic Development/Community Services Actuals/Trend Budget 0 100000 200000 300000 400000 500000 600000 700000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC City Clerk Actuals/Trend Budget Packet Page 350 of 393 34 Information Services Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 46,319$ 46,319$ 45,804$ -1.11% February 107,710 61,392 94,222 -12.52% March 152,083 44,373 152,829 0.49% April 201,916 49,832 200,427 -0.74% May 248,762 46,847 259,869 4.46% June 299,283 50,521 316,292 5.68% July 346,978 47,695 366,697 5.68% August 409,564 62,586 432,840 5.68% September 459,114 49,549 485,206 5.68% October 512,043 52,929 541,142 5.68% November 561,496 49,453 593,406 5.68% December 657,841 96,345 695,227 5.68% Finance Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 73,408$ 73,408$ 72,999$ -0.56% February 136,996 63,588 140,691 2.70% March 198,836 61,841 200,031 0.60% April 257,292 58,456 256,611 -0.26% May 315,263 57,970 312,742 -0.80% June 381,627 66,364 369,308 -3.23% July 441,290 59,663 427,045 -3.23% August 495,104 53,815 479,122 -3.23% September 555,551 60,447 537,617 -3.23% October 621,970 66,419 601,893 -3.23% November 687,980 66,010 665,772 -3.23% December 754,734 66,754 730,371 -3.23% 2012 City of Edmonds, WA Monthly Expenditure Report-Information Services 2012 City of Edmonds, WA Monthly Expenditure Report-Finance 0 100000 200000 300000 400000 500000 600000 700000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Information Services Actuals/Trend Budget 0 100000 200000 300000 400000 500000 600000 700000 800000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Finance Actuals/Trend Budget Packet Page 351 of 393 35 City Attorney Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 41,250$ 41,250$ 32,000$ -22.42% February 82,500 41,250 72,417 -12.22% March 123,750 41,250 125,330 1.28% April 165,000 41,250 170,361 3.25% May 206,250 41,250 192,778 -6.53% June 247,500 41,250 234,108 -5.41% July 288,750 41,250 273,126 -5.41% August 330,000 41,250 312,144 -5.41% September 371,250 41,250 351,162 -5.41% October 412,500 41,250 390,180 -5.41% November 453,750 41,250 429,198 -5.41% December 495,000 41,250 468,216 -5.41% Police Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 755,785$ 755,785$ 649,122$ -14.11% February 1,479,570 723,784 1,338,091 -9.56% March 2,251,474 771,905 2,037,833 -9.49% April 2,965,978 714,504 2,722,871 -8.20% May 3,657,308 691,330 3,380,135 -7.58% June 4,467,277 809,969 4,149,872 -7.11% July 5,203,139 735,862 4,833,450 -7.11% August 5,920,175 717,036 5,499,540 -7.11% September 6,700,331 780,155 6,224,265 -7.11% October 7,422,067 721,736 6,894,721 -7.11% November 8,377,803 955,736 7,782,551 -7.11% December 9,165,244 787,441 8,514,043 -7.11% 2012 City of Edmonds, WA Monthly Expenditure Report-City Attorney 2012 City of Edmonds, WA Monthly Expenditure Report-Police 0 100000 200000 300000 400000 500000 600000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC City Attorney Actuals/Trend Budget 0 2000000 4000000 6000000 8000000 10000000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Police Actuals/Trend Budget Packet Page 352 of 393 36 Development Services Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 130,080$ 130,080$ 119,611$ -8.05% February 260,534 130,454 256,302 -1.62% March 408,125 147,591 387,213 -5.12% April 543,094 134,968 516,641 -4.87% May 680,281 137,188 650,915 -4.32% June 819,050 138,769 774,015 -5.50% July 952,449 133,399 900,080 -5.50% August 1,092,073 139,624 1,032,026 -5.50% September 1,229,320 137,247 1,161,727 -5.50% October 1,375,997 146,677 1,300,339 -5.50% November 1,509,812 133,814 1,426,796 -5.50% December 1,658,272 148,460 1,567,093 -5.50% Parks & Recreation Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 225,340$ 225,340$ 221,141$ -1.86% February 470,715 245,375 441,578 -6.19% March 736,053 265,338 681,137 -7.46% April 990,438 254,386 928,272 -6.28% May 1,255,131 264,692 1,201,609 -4.26% June 1,581,521 326,390 1,503,266 -4.95% July 1,978,955 397,434 1,881,035 -4.95% August 2,383,015 404,061 2,265,102 -4.95% September 2,697,712 314,697 2,564,228 -4.95% October 2,944,453 246,740 2,798,760 -4.95% November 3,182,915 238,462 3,025,422 -4.95% December 3,504,196 321,281 3,330,806 -4.95% 2012 City of Edmonds, WA Monthly Expenditure Report-Development Services 2012 City of Edmonds, WA Monthly Expenditure Report-Parks & Recreation 0 200000 400000 600000 800000 1000000 1200000 1400000 1600000 1800000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Development Services Actuals/Trend Budget 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Parks & Recreation Actuals/Trend Budget Packet Page 353 of 393 37 Public Works Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 27,382$ 27,382$ 23,781$ -13.15% February 50,599 23,217 47,443 -6.24% March 74,354 23,755 70,857 -4.70% April 97,129 22,775 95,079 -2.11% May 119,986 22,856 119,904 -0.07% June 143,545 23,559 143,089 -0.32% July 175,267 31,722 174,711 -0.32% August 198,164 22,897 197,535 -0.32% September 221,614 23,450 220,910 -0.32% October 244,229 22,616 243,454 -0.32% November 267,862 23,633 267,012 -0.32% December 294,110 26,248 293,176 -0.32% Facilities Maintenance Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 102,793$ 102,793$ 107,234$ 4.32% February 220,909 118,116 223,733 1.28% March 340,858 119,950 337,372 -1.02% April 481,844 140,985 438,882 -8.92% May 553,750 71,907 549,148 -0.83% June 673,162 119,412 646,963 -3.89% July 779,482 106,320 749,146 -3.89% August 879,994 100,512 845,745 -3.89% September 995,315 115,321 956,578 -3.89% October 1,103,341 108,026 1,060,400 -3.89% November 1,213,261 109,920 1,166,042 -3.89% December 1,351,548 138,287 1,298,947 -3.89% 2012 City of Edmonds, WA Monthly Expenditure Report-Public Works 2012 City of Edmonds, WA Monthly Expenditure Report-Facilities Maintenance 0 50000 100000 150000 200000 250000 300000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Public Works Actuals/Trend Budget 0 200000 400000 600000 800000 1000000 1200000 1400000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Facilities Maintenance Actuals/Trend Budget Packet Page 354 of 393 38 Engineering Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January 108,801$ 108,801$ 108,908$ 0.10% February 217,665 108,865 217,975 0.14% March 326,749 109,084 329,676 0.90% April 443,098 116,349 435,974 -1.61% May 551,007 107,909 544,312 -1.22% June 658,262 107,255 652,666 -0.85% July 769,311 111,049 762,771 -0.85% August 879,506 110,195 872,030 -0.85% September 992,929 113,423 984,488 -0.85% October 1,104,742 111,813 1,095,350 -0.85% November 1,212,341 107,599 1,202,035 -0.85% December 1,318,706 106,365 1,307,496 -0.85% City of Edmonds, WA Monthly Expenditure Report-Engineering 2012 0 200000 400000 600000 800000 1000000 1200000 1400000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Engineering Actuals/Trend Budget Packet Page 355 of 393    AM-5042     9.              City Council Meeting Meeting Date:08/21/2012 Time:10 Minutes   Submitted For:Shawn Hunstock Submitted By:Debra Sharp Department:Finance Committee: Finance Type:  Information Subject Title Ordinance - 2012 August Budget Amendment Recommendation Approval of the 2012 August Budget Amendment Previous Council Action Reviewed by Finance Committee Narrative The first part of the budget amendment establishes the new Contingency Reserve Fund.  The Finance Department requests budget appropriation to transfer 1.9 million from the Emergency/Financial Reserve Fund and 1.3 million from the Reserve Fund into the Contingency Reserve Fund.  After the transfer, the above mentioned funds would have a balance of zero so the City is requesting the two funds be closed.  The Finance Department is also requesting a transfer from the General Fund into the Contingency Reserve Fund in the amount of $2,015,000 in order to establish the 16% reserve required by the recently adopted Reserve Policy. The second part of the budget amendment is in regards to the Main Street Improvment Project. Attachments August 2012 Budget Amendment Form Review Inbox Reviewed By Date Finance Shawn Hunstock 08/15/2012 11:50 AM City Clerk Sandy Chase 08/15/2012 12:00 PM Mayor Dave Earling 08/15/2012 12:19 PM Finalize for Agenda Sandy Chase 08/15/2012 02:00 PM Form Started By: Debra Sharp Started On: 08/15/2012 09:05 AM Final Approval Date: 08/15/2012  Packet Page 356 of 393 1 ORDINANCE NO. _______ AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING ORDINANCE NO. 3891 AS A RESULT OF UNANTICIPATED TRANSFERS AND EXPENDITURES OF VARIOUS FUNDS, CREATING A NEW CONTINGENCY RESERVE FUND, AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE. WHEREAS, previous actions taken by the City Council require Interfund Transfers and increases in appropriations; and WHEREAS, state law requires an ordinance be adopted whenever money is transferred from one fund to another; and WHEREAS, the City Council has reviewed the amended budget appropriations and information which was made available; and approves the appropriation of local, state, and federal funds and the increase or decrease from previously approved programs within the 2012 Budget; and WHEREAS, the applications of funds have been identified; THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Section 1 of Ordinance No. 3891 adopting the final budget for the fiscal year 2012 is hereby amended to reflect the changes shown in Exhibits A, B, C, D, and E hereto, which exhibits are incorporated herein by this reference. Section 2. Pursuant to RCW 35A.33.145, the City Council authorizes the Finance Director to create a new reserve fund – 012 Contingency Reserve Fund and close the Packet Page 357 of 393 2 Emergency/Financial Reserve Fund (006) and the Reserve Fund (010). The 012 Contingency Reserve Fund appropriation shall be as set forth in Exhibit D hereto, which is incorporated herein by this reference. Section 3. Chapter 3.10 ECC, entitled “Emergency Reserve Finance Fund,” is hereby repealed. Section 4. Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum, and shall take effect five (5) days after passage and publication of an approved summary thereof consisting of the title. APPROVED: MAYOR, DAVE EARLING ATTEST/AUTHENTICATE: CITY CLERK, SANDRA S. CHASE APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: BY ___ JEFF TARADAY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: Packet Page 358 of 393 3 EFFECTIVE DATE: ORDINANCE NO. Packet Page 359 of 393 4 SUMMARY OF ORDINANCE NO. __________ of the City of Edmonds, Washington On the ____ day of ___________, 2012, the City Council of the City of Edmonds, passed Ordinance No. _____________. A summary of the content of said ordinance, consisting of the title, provides as follows: AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING ORDINANCE NO. 3891 AS A RESULT OF UNANTICIPATED TRANSFERS AND EXPENDITURES OF VARIOUS FUNDS, CREATING A NEW CONTINGENCY RESERVE FUND, AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE. The full text of this Ordinance will be mailed upon request. DATED this _____ day of ________________,2012. CITY CLERK, SANDRA S. CHASE Packet Page 360 of 393 EXHIBIT “A”: Budget Amendments by Revenue (August 2012) 5 ORD. NO. ORD. NO. ORD. NO. ORD. NO. ORD. NO. 2012 FUND FUND 3861 3882 3886 3891 Amended NO.DESCRIPTION 11/22/2011 4/27/2012 5/25/2012 7/27/2012 Aug 2012 Budget 001 GENERAL FUND 33,006,588$ 7,930$ -$ 2,656$ -$ 33,017,174$ 004 CRIMINAL INVESTIGATIONS - - - - - - 006 EMERGENCY/FINANCIAL RESERVE - - - - - - 009 LEOFF-MEDICAL INS. RESERVE 600,550 - - - - 600,550 010 RESERVE FUND 2,200 - - - - 2,200 011 RISK MANAGEMENT RESERVE FUND - - - 244,000 - 244,000 012 CONTINGENCY RESERVE FUND - - - - 5,282,000 5,282,000 104 DRUG ENFORCEMENT FUND 28,200 - - - - 28,200 111 STREET FUND 1,313,650 - - - - 1,313,650 112 COMBINED STREET CONST/IMPROVE 2,006,864 - - - 833,238 2,840,102 113 MULTIMODAL TRANSPORTATION FD.- - - - - - 116 BUILDING MAINTENANCE 56,860 - - - - 56,860 117 MUNICIPAL ARTS ACQUIS. FUND 58,325 - - - - 58,325 118 MEMORIAL STREET TREE 28 - - - - 28 120 HOTEL/MOTEL TAX REVENUE FUND 69,200 - - (17,250) - 51,950 121 EMPLOYEE PARKING PERMIT FUND 20,140 - - - - 20,140 122 YOUTH SCHOLARSHIP FUND 2,525 - - - - 2,525 123 TOURISM PROMOTIONAL FUND/ARTS 19,000 - - - - 19,000 125 PARK ACQ/IMPROVEMENT 590,850 77,000 103,000 - - 770,850 126 SPECIAL CAPITAL FUND 590,800 - - - - 590,800 127 GIFTS CATALOG FUND 10,759 - - - - 10,759 129 SPECIAL PROJECTS FUND 313,004 169,000 - - - 482,004 130 CEMETERY MAINTENANCE/IMPROV 119,850 - - - - 119,850 132 PARKS CONSTRUCTION 1,185,000 104,414 - - - 1,289,414 136 PARKS TRUST FUND 177 - - - - 177 137 CEMETERY MAINTENANCE TRUST FD 14,600 - - - - 14,600 138 SISTER CITY COMMISSION 5,230 - - - - 5,230 211 LID FUND CONTROL 46,700 - - - - 46,700 213 LID GUARANTY FUND 46,725 105,000 - - - 151,725 234 LTGO BOND DEBT SERVICE FUND 478,573 - - - - 478,573 411 COMBINED UTILITY OPERATION 15,306,920 150,000 - - - 15,456,920 412 COMBINED UTILITY CONST/IMPROVE 7,888,400 - - - - 7,888,400 414 CAPITAL IMPROVEMENTS RESERVE 1,126,377 457,012 - - - 1,583,389 511 EQUIPMENT RENTAL FUND 1,076,456 - - - - 1,076,456 617 FIREMEN'S PENSION FUND 94,423 - - - - 94,423 631 TRANSPORTATION BENEFIT DISTRICT 600,000 - - - - 600,000 Totals 66,678,974$ 1,070,356$ 103,000$ 229,406$ 6,115,238$ 74,196,974$ Packet Page 361 of 393 EXHIBIT “B”: Budget Amendments by Expenditure (August 2012) 6 ORD. NO. ORD. NO. ORD. NO. ORD. NO. ORD. NO. 2012 FUND FUND 3861 3882 3886 3891 Amended NO.DESCRIPTION 11/22/2011 4/27/2012 5/25/2012 7/27/2012 Aug 2012 Budget 001 GENERAL FUND 32,949,288$ 211,384$ 103,000$ 2,656$ 2,015,000$ 35,281,328$ 004 CRIMINAL INVESTIGATIONS - - - - - - 006 EMERGENCY/FINANCIAL RESERVE - - - - 1,927,600 1,927,600 009 LEOFF-MEDICAL INS. RESERVE 619,811 - - - - 619,811 010 RESERVE FUND - - - - 1,339,400 1,339,400 011 RISK MANAGEMENT RESERVE FUND - - - - - 012 CONTINGENCY RESERVE FUND - - - - - - 104 DRUG ENFORCEMENT FUND 80,233 - - - - 80,233 111 STREET FUND 1,604,948 20,200 - - - 1,625,148 112 COMBINED STREET CONST/IMPROVE 2,075,625 31,803 - - 833,238 2,940,666 113 MULTIMODAL TRANSPORTATION FD.- - - - - - 116 BUILDING MAINTENANCE 245,000 - - - - 245,000 117 MUNICIPAL ARTS ACQUIS. FUND 134,550 - - - - 134,550 118 MEMORIAL STREET TREE - - - - - - 120 HOTEL/MOTEL TAX REVENUE FUND 73,750 - - (17,250) - 56,500 121 EMPLOYEE PARKING PERMIT FUND 26,086 - - - - 26,086 122 YOUTH SCHOLARSHIP FUND 4,000 - - - - 4,000 123 TOURISM PROMOTIONAL FUND/ARTS 19,000 - - - - 19,000 125 PARK ACQ/IMPROVEMENT 875,000 77,000 103,000 - - 1,055,000 126 SPECIAL CAPITAL FUND 697,717 - - - - 697,717 127 GIFTS CATALOG FUND 12,275 - - - - 12,275 129 SPECIAL PROJECTS FUND 313,000 170,500 - - - 483,500 130 CEMETERY MAINTENANCE/IMPROV 172,005 - - - - 172,005 132 PARKS CONSTRUCTION 1,187,000 210,000 - (20,800) - 1,376,200 136 PARKS TRUST FUND - 6,930 - - - 6,930 137 CEMETERY MAINTENANCE TRUST FD - - - - - - 138 SISTER CITY COMMISSION 4,600 - - - - 4,600 211 LID FUND CONTROL 46,500 105,000 - - - 151,500 213 LID GUARANTY FUND - - - 244,000 - 244,000 234 LTGO BOND DEBT SERVICE FUND 478,573 - - - - 478,573 411 COMBINED UTILITY OPERATION 15,598,246 191,481 - (419,326) - 15,370,401 412 COMBINED UTILITY CONST/IMPROVE 10,465,068 482,611 - 40,000 312,000 11,299,679 414 CAPITAL IMPROVEMENTS RESERVE 1,126,376 457,012 - (11,873) - 1,571,515 511 EQUIPMENT RENTAL FUND 1,321,334 - - - - 1,321,334 617 FIREMEN'S PENSION FUND 123,515 - - - - 123,515 631 TRANSPORTATION BENEFIT DISTRICT 600,000 - - - - 600,000 Totals 70,853,500$ 1,963,921$ 206,000$ (182,593)$ 6,427,238$ 79,268,066$ Packet Page 362 of 393 EXHIBIT “C”: Budget Amendments (August 2012) 7 Department BARS Category Debit Credit Description Items Previously Before Council Emergency/Financial Reserve 006 000 310 597 012 550 00 Interfund Transfer 1,927,600 Emergency/Financial Reserve 006 000 310 508 000 000 00 Ending Fund Balance 1,927,600 Reserve Fund 010 000 390 597 012 550 00 Interfund Transfer 1,339,400 Reserve Fund 010 000 390 508 000 000 00 Ending Fund Balance 1,339,400 General Fund 001 000 390 597 012 550 00 Interfund Transfer 2,015,000 General Fund 001 000 390 508 000 000 00 Ending Fund Balance 2,015,000 Contingency Reserve Fund 012 000 390 397 006 000 00 Interfund Transfer 1,927,600 Contingency Reserve Fund 012 000 390 397 010 000 00 Interfund Transfer 1,339,400 Contingency Reserve Fund 012 000 390 397 001 000 00 Interfund Transfer 2,015,000 Contingency Reserve Fund 012 000 390 508 000 000 00 Ending Fund Balance 5,282,000 Street Construction 112 200 630 595 330 650 00 Construction 833,238 Street Construction 112 200 000 397 412 100 00 Interfund Transfer 140,000 Street Construction 112 200 000 397 412 200 00 Interfund Transfer 172,000 Street Construction 112 200 000 333 000 000 00 Grant 521,238 Utility Construction Fund 412 100 630 597 112 550 00 Interfund Transfer 140,000 Utility Construction Fund 412 100 630 508 000 000 00 Ending Fund Balance 140,000 Utility Construction Fund 412 200 630 597 112 550 00 Interfund Transfer 172,000 Utility Construction Fund 412 200 630 508 000 000 00 Ending Fund Balance 172,000 Transfer funds from the Emergency/ Financial Reserve Fund and the Reserve Fund to the Contingency Reserve Fund. Transfer from General Fund establishes 16% reserve. Main Street Improvement Project Packet Page 363 of 393 EXHIBIT “D”: Budget Amendments (August 2012) 8 Above is a summary of the changes required to establish the Contingency Reserve Fund. Fund Name and Title: Budget Amendment Summary General Fund 001 Establish a Contingency Reserve Fund Emergency/Financial Reserve 006 Establish a Contingency Reserve Fund Reserve Fund 010 Establish a Contingency Reserve Fund Contingency Reserve Fund 012 Establish a Contingency Reserve Fund Fund Number Change in Beginning Fund Balance Revenue Expense Change in Ending Fund Balance 001 2,015,000 (2,015,000) 006 1,927,600 (1,927,600) 010 1,339,400 (1,339,400) 012 5,282,000 - 5,282,000 Total Change 0 5,282,000 5,282,000 0 Packet Page 364 of 393 EXHIBIT “D”: Budget Amendments (August 2012) 9 Prepared By: Department: Description on Budget Amendment Summary: Budget Amendment Detailed Description: Expenditure Increase (Decrease) Fund # Fund Title Object BARS Number Amount 006 Emergency/Finance ResInterfund Transfer 006.000.310.597.012.550.00 1,927,600 010 Reserve Fund Interfund Transfer 010.000.390.597.012.550.00 1,339,400 001 General Fund Interfund Transfer 001.000.390.597.012.550.00 2,015,000 Total Expenditure Increase (Decrease)5,282,000$ Revenue (Increase) Decrease Fund Fund Title Revenue Source BARS Number Amount 012 Contingency Res. Fund Interfund Transfer 012.000.390.397.006.000.00 (1,927,600) 012 Contingency Res. Fund Interfund Transfer 012.000.390.397.010.000.00 (1,339,400) 012 Contingency Res. Fund Interfund Transfer 012.000.390.397.001.000.00 (2,015,000) Total Revenue (Increase) Decrease (5,282,000)$ Ending Fund Balance Increase (Decrease) Fund Fund Title BARS Number Amount 006 Emergency/Financial Res 006.000.310.508.000.000.00 (1,927,600) 010 Reserve Fund 010.000.000.390.508.000.00 (1,339,400) 001 General Fund 001.000.390.508.000.000.00 (2,015,000) 012 Contingency Res Fund 012.000.390.508.000.000.00 5,282,000 Total Ending Fund Balance Increase (Decrease)-$ Deb Sharp Finance Establish the Contingency Reserve Fund The Finance Department requests budget appropriation to transfer 1.9 million from the Emergency/Financial Reserve Fund and 1.3 million from the Reserve Fund into the Contingency Reserve Fund. After the transfer, the above mentioned funds would have a balance of zero so the City is requesting the two funds be closed. The Finance Department is also requesting a transfer from the General Fund into the Contingency Reserve Fund in the amount of $2,015,000 in order to establish the 16% reserve required by the recently adopted Reserve Policy. Packet Page 365 of 393 EXHIBIT “E”: Budget Amendments (August 2012) 10 Fund Number Change in Beginning Fund Balance Revenue Expense Change in Ending Fund Balance 112 833,238 833,238 0 412 312,000 (312,000) Total Change 0 6,115,238 6,427,238 (312,000) Above is a summary of the changes in regards to the Main Street Improvement Project. Fund Name and Title: Budget Amendment Summary Street Construction Fund (112) Main Street Improvement Project Utility Construction Fund (412) Main Street Improvement Project Packet Page 366 of 393 EXHIBIT “E”: Budget Amendments (August 2012) 11 Prepared By: Department: Description on Budget Amendment Summary: Budget Amendment Detailed Description: Expenditure Increase (Decrease) Fund # Fund Title Object BARS Number Amount 112 Street Const Fund Construction 112.200.630.595.330.650.00 833,238 412-100 Utility Const Fund Interfund Transfer 412.100.630.597.112.550.00 140,000 412-200 Utility Const Fund Interfund Transfer 412.200.630.597.112.550.00 172,000 Total Expenditure Increase (Decrease)1,145,238$ Revenue (Increase) Decrease Fund Fund Title Revenue Source BARS Number Amount 112 Street Const Fund Interfund Transfer 112.200.000.397.412.100.00 (140,000) 112 Street Const Fund Interfund Transfer 112.200.000.397.412.200.00 (172,000) 112 Street Const Fund State Grant 112.200.000.333.000.000.00 (521,238) Total Revenue (Increase) Decrease (833,238)$ Ending Fund Balance Increase (Decrease) Fund Fund Title BARS Number Amount 412-100 Utility Const Fund 412.100.630.508.000.000.00 (140,000) 412-200 Utility Const Fund 412.200.630.597.112.550.00 (172,000) Total Ending Fund Balance Increase (Decrease)(312,000)$ Rob English Public Works Department Main Street Improvement Project The City received a direct appropriation of $500,000 from the State Legislature in April 2012 to fund the improvements on Main St. between 5th and 6th Avenues. This amendment will increase the project funding by $492,500, which is the amount to be provided to the City for project expenditures. The budget amendment also increases the funding provided by the Water and Stormwater Utiltiy Funds. The increased utility funding will be used to pay for a waterline replacement and stormwater pipe system, catch basins and infiltration system in Main Street. Packet Page 367 of 393    AM-5046     10.              City Council Meeting Meeting Date:08/21/2012 Time:5 Minutes   Submitted For:Shawn Hunstock Submitted By:Shawn Hunstock Department:Finance Review Committee: Finance Committee Action: Recommend Review by Full Council Type: Information  Information Subject Title Savings from Refinancing of GO Bonds Recommendation N. A. for information only Previous Council Action Council approved the refinancing of the City's General Obligation bonds on December 6, 2011. Narrative The City Council approved the refinancing of the City's General Obligation bonds on December 6, 2011. Between finishing the overdue audit for the 2010 financial statements and completing the 2011 financial statement audit (on time), the GO bond refinancing has taken more time than anticipated. However, rates have dropped during the intervening period. The original estimate of savings in December 2011 was $806,552. The new estimate at current interest rates anticipate a total savings of $1,405,759. This savings is split between several different funds based on where the bond issue originated. Among other savings, the refinancing will save approximately $404,502 in REET money and $881,163 for the 2002 bonds related to the Edmonds Public Facilities District. Attachments GO Bond Refinancing Savings Form Review Inbox Reviewed By Date City Clerk Sandy Chase 08/15/2012 12:00 PM Mayor Dave Earling 08/15/2012 12:06 PM Finalize for Agenda Sandy Chase 08/15/2012 12:11 PM Form Started By: Shawn Hunstock Started On: 08/15/2012 11:30 AM Final Approval Date: 08/15/2012  Packet Page 368 of 393 Pa c k e t Pa g e 36 9 of 39 3 Packet Page 370 of 393 Pa c k e t Pa g e 37 1 of 39 3 Packet Page 372 of 393 Packet Page 373 of 393 Packet Page 374 of 393 Packet Page 375 of 393 Packet Page 376 of 393 Pa c k e t Pa g e 37 7 of 39 3 Packet Page 378 of 393 Packet Page 379 of 393 Packet Page 380 of 393 Pa c k e t Pa g e 38 1 of 39 3 Packet Page 382 of 393 Packet Page 383 of 393    AM-5057     11.              City Council Meeting Meeting Date:08/21/2012 Time:45 Minutes   Submitted For:Rob Chave, Acting Development Services Director Submitted By:Sandy Chase Department:City Clerk's Office Review Committee: Planning/Parks/Public Works Committee Action:  Type: Action  Information Subject Title Discussion regarding retail only zone in BD1. Recommendation Previous Council Action This item was scheduled on the August 6, 2012 City Council Agenda, however, due to the late hour, the item was forwarded to the Parks, Planning & Public Works Committee, and also to the August 21, 2012 City Council Agenda. The Parks, Planning & Public Works Committee is scheduled to discuss this item at a special meeting on August 20, 2012. Narrative PLEASE REFER TO THE AGENDA MEMO AND ATTACHMENTS SUBMITTED FOR THE AUGUST 6, 2012 CITY COUNCIL MEETING. Form Review Inbox Reviewed By Date Mayor Dave Earling 08/16/2012 10:06 AM Finalize for Agenda Linda Hynd 08/16/2012 12:19 PM Form Started By: Sandy Chase Started On: 08/15/2012 03:34 PM Final Approval Date: 08/16/2012  Packet Page 384 of 393    AM-5061     12.              City Council Meeting Meeting Date:08/21/2012 Time:45 Minutes   Submitted By:Sandy Chase Department:City Clerk's Office Review Committee: Planning/Parks/Public Works Committee Action:  Type: Action  Information Subject Title Discussion regarding step-backs. Recommendation Previous Council Action This item was scheduled on the August 6, 2012 City Council Agenda, however, due to the late hour, the item was forwarded to the Parks, Planning & Public Works Committee, and also to the August 21, 2012 City Council Agenda. The Parks, Planning & Public Works Committee is scheduled to discuss this item at a special meeting on August 20, 2012. Narrative PLEASE REFER TO THE AGENDA MEMO AND ATTACHMENTS SUBMITTED FOR THE AUGUST 6, 2012 CITY COUNCIL MEETING. Form Review Inbox Reviewed By Date Mayor Dave Earling 08/16/2012 10:05 AM Finalize for Agenda Linda Hynd 08/16/2012 12:19 PM Form Started By: Sandy Chase Started On: 08/15/2012 03:42 PM Final Approval Date: 08/16/2012  Packet Page 385 of 393    AM-5056     13.              City Council Meeting Meeting Date:08/21/2012 Time:15 Minutes   Submitted By:Sandy Chase Department:City Clerk's Office Review Committee: Committee Action:  Type: Information  Information Subject Title Report on City Council Committee Meetings of August 14, 2012. Recommendation N/A Previous Council Action N/A Narrative The following City Council Committees met on August 14, 2012: •Finance Committee •Parks, Planning & Public Works Committee •Public Safety & Personnel Committee Attached are copies of the minutes for each committee meeting. Attachments 8-14 Finance Committee Minutes 8-14-2012 PPP Committee Minutes 08-14-12 Public Safety & Personnel Committee Minutes Form Review Inbox Reviewed By Date Mayor Dave Earling 08/17/2012 08:49 AM Finalize for Agenda Linda Hynd 08/17/2012 09:00 AM Form Started By: Sandy Chase Started On: 08/15/2012 03:26 PM Final Approval Date: 08/17/2012  Packet Page 386 of 393 FINANCE COMMITTEE MEETING MINUTES August 14, 2012 Councilmembers Present Public Present Councilmember Buckshnis Ron Wambolt Councilmember Yamamoto Roger Hertrich Bruce Witenberg Staff Present Dave Preston, Port of Edmonds Commissioner Shawn Hunstock, Finance Director Jeannie Dines, Recorder Councilmember Buckshnis called the meeting to order at 6:27 p.m. The agenda was reordered to accommodate staff who were presenting at other committee meetings. I. Financial Statement Audit Mr. Hunstock distributed an email summary from the State Auditor’s office. The attachment to the report, the Financial Statement Audit Report, is available online. There were no findings for the 2011 financial statement audit and the outstanding items from the 2010 audit are considered resolved. He highlighted minor items noted by the State Auditor’s Office. Action: Schedule on Consent Agenda, information only. E. Banking Request for Proposals Mr. Hunstock explained it has been several years since the City issued an RFP for banking services. When this was done in Tukwila, they stayed with their existing bank but via the process, saved money in banking fees. Consideration is also being given to diversifying the City’s investment portfolio beyond the State investment pool where the City currently earns 0.2%. He explained the Public Deposit Protection Commission in Washington requires banks that accept public deposits to be 100% collateralized. Action: Schedule on Consent Agenda. F. June 2012 Quarterly Financial Report Mr. Hunstock explained the separate monthly financial report and quarterly report have been combined into one report. Automation allows staff to produce the quarterly report on a monthly basis. All the City’s accounts are contained in the reports. He highlighted revenues that are at 52% and expenditures that are at 46%. Councilmember Buckshnis suggested moving the General Fund information to the beginning of the report. Action: Schedule on Consent Agenda. G. 2012 August Budget Amendment Mr. Hunstock explained this budget amendment implements the reserve policy adopted by Council, consolidating the $1.9 million Emergency Financial Reserve Fund and $1.3 million Public Safety Reserve Fund into a newly created reserve fund, Contingency Reserve Fund. As part of establishing the new reserve fund, $2 million is moved from the General Fund into the Contingency Reserve Fund so that this reserve fund contains all the monies considered to be the City’s reserves. A balance of over $3 million remains in the General Fund for operating expenses and cash flow purposes. The reserve policy established a target of 16%, this $5.2 million in the new serve fund meets that target. Packet Page 387 of 393 Finance Committee Minutes, Page 2 The previous budget amendment moved $244,000 into a Risk Management Reserve Fund, a separate reserve fund for claims and litigation and related expenditures. The balance in that fund does not yet meet the 2% target. The reserve policy previously adopted by Council removed the emergency restrictions on use of the $1.9 million reserve. The Contingency Reserve Fund can be used for any purpose Council deems necessary; however, it still requires Council appropriation. Mr. Hunstock explained the contract for Main Street Decorative Lighting was not included in the 2012 budget. This budget amendment funds that project at the amount of the engineers estimate. If bids are higher than the estimate, another budget amendment may be required. Action: Schedule for full Council agenda. A. Interlocal Cooperation Agreement For Public Safety Boat Maintenance And Repair Services Between The City of Edmonds And Snohomish County Fire District #1 Committee members had no questions regarding this item. Action: Schedule on Consent Agenda. B. Authorization to Sell One (1) 2002 Dodge Stratus Committee members had no questions regarding this item. Action: Schedule on Consent Agenda. C. Authorization to Sell Unit 047-STR (1973 Asphalt Tack Wagon) Committee members had no questions regarding this item. Action: Schedule on Consent Agenda. D. Authorization to Contract With James G. Murphy Auctioneers To Sell Surplus City Vehicles Committee members had no questions regarding this item. Action: Schedule on Consent Agenda. H. Public Comments Ron Wambolt, Edmonds, commented the new reserve policy will require more discipline as previously the $1.9 million was not considered part of the 8% target. In previous years the Council utilized a portion of the 8% to balance the budget. He appreciated Mayor Earling’s interest in balancing the budget annually. Mr. Hunstock clarified the $1.9 million was included in the General Fund fund balance although it was in a separate fund. Mr. Wambolt relayed an offer he received from American Express Bank for .85% interest. Mr. Hunstock explained the City’s investments must be approved by the Public Deposit Protection Commission. Roger Hertrich, Edmonds, inquired about REET revenue this year and obligations paid via the REET fund. Mr. Hunstock explained the City has two REET funds, one is used primarily for debt service (REET 2) and the other for construction type activities (REET 1). The REET 2 fund balance Packet Page 388 of 393 Finance Committee Minutes, Page 3 has increased from $436,000 to $722,000 and the REET 1 fund balance has increased from $225,000 to $464,000. A brief discussion followed regarding the use of REET funds for road projects. Councilmember Buckshnis requested scheduling a discussion on the September Finance Committee agenda about reducing the amount of REET revenue that can be used for roads from $750,000 to $500,000. Bruce Witenberg, Edmonds, expressed his appreciation for the Council scheduling a presentation by WCIA. Mr. Hunstock advised a 30 minute presentation will be made to the Council next week regarding the City’s coverage, WCIA’s policies and processes, etc. The WCIA’s electronic presentation will be included in the Council packet. Mr. Hertrich asked whether there have been any discussions at the RFA planning meetings regarding the cost of an RFA. Mr. Hunstock relayed their intent is to ask each City Council and Fire District Board to pass a resolution this year authorizing the RFA Planning Committee to continue negotiations/discussions. Adjournment – The meeting adjourned at 7:03 p.m. Packet Page 389 of 393 D R A F T M I N U T E S Public Works, Parks and Planning Committee Meeting August 14, 2012 Elected Officials Present: Staff Present: Council Member Adrienne Fraley-Monillas, Chair Rob English, City Engineer Council Member Lora Petso Phil Williams, Public Works Director Leonard Yarberry, Building Official The committee convened at 6:15p.m. A. Permitting fees for solar installations. Mr. Yarberry introduced the topic and updated the committee on current policies on fees for residential and commercial solar projects. Residential projects are charged a flat fee of $135 and commercial installation fees are based upon valuation, using a modified approach. The committee suggested moving to full Council to discuss the possibility of using waivers as incentives. ACTION: Schedule for Council discussion at future meeting B. Authorization for Mayor to sign Supplemental Agreement #2 with David Evans & Associates for the 76th Ave. W @ 212th St. SW Intersection Improvement Project. Mr. English reviewed the scope of work and services to be provided under the proposed Supplemental Agreement #2 with David Evans & Associates for the intersection improvements at 76th Ave and 212th St. ACTION: Moved to Consent Agenda for approval. C. Approval of Right-of-Way, Administrative Settlement and Appraisal Waiver Procedures on Federal-Aid Projects. Mr. English presented the proposed revisions to the right-of-way, administrative settlement and appraisal waiver procedures on Federal-Aid projects. He discussed how these procedures are applied when acquiring right-of-way on transportation projects funded by the Federal Highway Administration (FHWA). ACTION: Moved to Consent Agenda for approval. D. Report on final construction costs for the Lift Station 2 Replacement Project and acceptance of project. Mr. English provided a brief summary of the Lift Station 2 improvements and that the project is now complete and ready for acceptance. The final construction contract amount was $62,915 below the original contract amount with the Contractor. ACTION: Moved to Consent Agenda for approval. Packet Page 390 of 393 Public Works, Parks and Planning Committee Minutes August 14, 2012 Page 2 2 F. Report on bids opened July 31, 2012 for the A-Basin Upgrade Project and award of contract to Moon Construction Co. Inc. ($174,530.96 including sales tax). Mr. Williams reviewed the bid results for the A-Basin upgrade project and recommended the project be awarded to Moon Construction in the amount of $174,530.96. ACTION: Moved to Consent Agenda for approval. G. Report on bids opened August 2, 2012 for the Building Roof Replacement Project and award of contract to Kruger Sheet Metal ($344,925 including sales tax). Mr. Williams reviewed the bid results for the Building Roof Replacement project and recommended the project be awarded to Kruger Sheet Metal in the amount of $344,925. ACTION: Moved to Consent Agenda for approval. H. Authorization to award a construction contract for the 2012 Waterline Overlay Project. Mr. English explained that the City was scheduled to receive quotations for the 2012 Waterline Overlay project on August 16, 2012. The project will repair and overlay three City streets that were disturbed during the waterline replacement work in 2011. ACTION: Moved to Consent Agenda for approval. I. Authorization for Mayor to approve acceptance and recording of Public Pedestrian Access Easements. Mr. English discussed why a public pedestrian access easement was required as part of the Edmonds Way Apartment Complex improvements. The easement provides for a proper sidewalk alignment and clearances around existing utilities on Edmonds Way. ACTION: Moved to Consent Agenda for approval. J. Authorization for Mayor to sign Supplemental Agreement No. 2 with Parametrix, Inc. for the Main Street Decorative Lighting and Sidewalk Enhancement Project. Mr. English presented the scope of work and fees for Supplemental Agreement No. 2 with Parametrix, Inc for the Main St. Decorative Lighting and Sidewalk Enhancement Project. The engineering services will be provided during the upcoming construction phase. ACTION: Moved to Consent Agenda for approval. K. Report on Bids Opened August 9, 2012 for the Lift Station Rehabilitation Project and Award of Contract. Mr. English discussed the bids that were received for the Lift Station Rehabilitation Project and that Razz Construction was the apparent low bidder with a bid of $3,872,095. If staff finds the bid documents to be acceptable, then the item will be placed on the consent agenda for approval. Packet Page 391 of 393 Public Works, Parks and Planning Committee Minutes August 14, 2012 Page 3 3 ACTION: Moved to Consent Agenda for approval. L. Authorization to approve easements for the Sewer Lift Station Rehabilitation Project. Mr. English explained that the proposed temporary construction easements are needed for the Lift Station Rehabilitation Project. The documents have been signed by the property owners and are ready for approval. ACTION: Moved to Consent Agenda for approval. Councilmember Petso left the meeting prior to item E being discussed. E. Authorization for Mayor to sign Interlocal Agreement with Olympic View Water and Sewer District (OVWSD) to install sewerline and associated appurtenances as part of the 224th St. SW Sewer Replacement Project. Mr. Williams provided a brief overview of the Interlocal Agreement with Olympic View Water and Sewer District for the 224th St. SW sewer replacement project. Mr. Williams explained how this section of sewer main on 224th St. has been a problem area for the City in past years and that this project would improve the operation of the conveyance system. ACTION: Moved to Consent Agenda for approval. M. Public Comments Mr. Ken Reidy provided comments regarding an e-mail previously sent to Council and the City Attorney about 704 Fir St. The meeting adjourned at 7:45 p.m. Packet Page 392 of 393 Public Safety & Personnel Committee August 14, 2012 Page 1 of 1 Minutes Public Safety and Personnel Committee Meeting August 14, 2012 Elected Officials Present: Councilmember Joan Bloom Councilmember Kristiana Johnson Staff Present: Assistant Police Chief Jim Lawless The meeting was called to order at 6:35 p.m. A. Renew Domestic Violence Coordinator Position with the City of Mill Creek The only agenda item was the renewal of the Domestic Violence Coordinator Position interlocal agreement with the City of Mill Creek. There was a brief discussion with ACOP Lawless providing a history of the relationship between the Edmonds and Mill Creek Police Departments as it relates to this position. Also discussed was the volume of work completed by the position incumbent, Kari Hovorka, and how much she is able to accomplish in 19 hours per week. Both Councilmembers Bloom and Johnson expressed their gratitude for the work being done by Ms. Hovorka. Action: Forward to City Council Consent Agenda with a recommendation to approve. The meeting adjourned at 6:47 p.m. Packet Page 393 of 393