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2017-10-10 City Council - Full Agenda-1990
1 2 3 4 a 6 7 8. 9 o Agenda Edmonds City Council snl. ,nyo COUNCIL CHAMBERS 250 5TH AVE NORTH, EDMONDS, WA 98020 OCTOBER 10, 2017, 7:00 PM CALL TO ORDER/FLAG SALUTE ROLL CALL APPROVAL OF THE AGENDA APPROVAL OF THE CONSENT AGENDA 1. Approval of Council Special Meeting Minutes of September 26, 2017 2. Approval of Council Special Meeting Minutes of October 3, 2017 3. Approval of Council Meeting Minutes of October 3, 2017 4. Approval of claim, payroll and benefit checks, direct deposit and wire payments. PRESENTATIONS 1. Fire Prevention Week Proclamation (5 min.) 2. Presentation of the Proposed 2018 City Budget (15 min.) ADJOURN TO COUNCIL COMMITTEE MEETINGS THE CITY COUNCIL COMMITTEE MEETINGS ARE WORK SESSIONS FOR THE CITY COUNCIL AND STAFF ONLY. THE MEETINGS ARE OPEN TO THE PUBLIC BUT ARE NOT PUBLIC HEARINGS. THE COMMITTEES MEET CONCURRENTLY IN SEPARATE ROOMS AS INDICATED BELOW. PARKS, PLANNING, AND PUBLIC WORKS COMMITTEE (JURY MEETING ROOM) 1. Authorize Parks and Recreation Department to dispose of surplus equipment (10 min.) 2. Utility Easements for existing utilities within the Providence/Verdant Health & Swedish/Stevens Campus (10 min) 3. Authorization for Mayor to approve recording of a public pedestrian easement along Edmonds Way adjacent to 10032 Edmonds Way (10min) 4. Professional Services Agreement with MIG for the ADA Transition Plan (10min) 5. Fishing Pier Rehabilitation Project (10min) 6. Critical Area Ordinance Section 23.40.220(c)(7)(a) (15 min.) FINANCE COMMITTEE (COUNCIL CHAMBER) 1. Permit Software System Professional Services Agreement (PSA) (10 min.) 2. Public Facilities District (PFD) Bond Refinancing (25 min.) 3. August Monthly Financial Report (5 min.) 4. Third Quarter 2017 Budget Amendment (10 min.) 5. Brief Update on on City's Financial Relationship with Sno-Isle (10 min.) PUBLIC SAFETY AND PERSONNEL COMMITTEE (POLICE TRAINING ROOM) Edmonds City Council Agenda October 10, 2017 Page 1 1. Including Women & Minority Business Enterprises (WMBE) in the City's Purchasing Policies (10 min.) Edmonds City Council Agenda October 10, 2017 Page 2 4.1 City Council Agenda Item Meeting Date: 10/10/2017 Approval of Council Special Meeting Minutes of September 26, 2017 Staff Lead: Scott Passey Department: City Clerk's Office Preparer: Scott Passey Background/History N/A Staff Recommendation Review and approve the draft meeting minutes on the Consent Agenda. Narrative N/A Attachments: 09-26-2017 Draft Council Special Meeting Minutes Packet Pg. 3 4.1.a EDMONDS CITY COUNCIL SPECIAL MEETING DRAFT MINUTES SEPTEMBER 26, 2017 Elected Officials Present Tom Mesaros, Council President Mike Nelson, Council President Pro Tem Diane Buckshnis, Councilmember Kristiana Johnson, Councilmember Neil Tibbott, Councilmember arrived (9:45 am) Dave Teitzel, Councilmember arrived late Elected Officials Absent Adrienne Fraley-Monillas, Councilmember Dave Earling, Mayor CALL TO ORDER Staff Present Shane Hope, Development Svcs. Director Kernen Lien, Senior Planner Diane Cunningham, Admin. Assistant Jeff Taraday, City Attorney At 9:00 a.m., the City Council Special Meeting was called to order by Tom Mesaros, Council President, in the Edmonds Brackett Room, located at 250 5th Avenue North, Edmonds. 2. INTERVIEW RESPONDENTS OF THE EDMONDS MARSH STUDY REQUEST FOR PROPOSALS (RFP) The first interview started with a presentation from the Windward Environmental LLC. Team members in the interview were Jenny Love, Thai Do, Ron Gouguet and Nina Maas. The presentation summarized their experience, expertise, and proposed approach. Three Council members followed the presentation with questions and the Windward team responded. At the end, the team was thanked for their participation. At approximately 9:50 a.m., Council President Mesaros called a ten minute break. At 10:00 a.m., the meeting resumed. A second team, representing Shannon & Wilson, Inc., was introduced. Team participants were David Cline, Amy Summe, Suzanne Tomassi, Paul Schlenger and Keeley O'Connell. Six firms on the team but they have worked together for a long time. The team made a presentation about their expertise, experience, and proposed approach. Three Council members followed up with Edmonds City Council Draft Minutes September 26, 2017 Page 1 Packet Pg. 4 4.1.a questions and the Shannon & Wilson team responded. At the end, the team was thanked for participating. F4�111 O Lei" aIzI At 10:50 a.m., the meeting was adjourned. Edmonds City Council Draft Minutes September 26, 2017 Page 2 Packet Pg. 5 4.2 City Council Agenda Item Meeting Date: 10/10/2017 Approval of Council Special Meeting Minutes of October 3, 2017 Staff Lead: Scott Passey Department: City Clerk's Office Preparer: Scott Passey Background/History N/A Staff Recommendation Review and approve the draft meeting minutes on the Consent Agenda. Narrative N/A Attachments: 10-03-2017 Draft Council Special Meeting Minutes Packet Pg. 6 4.2.a EDMONDS CITY COUNCIL SPECIAL MEETING DRAFT MINUTES OCTOBER 3, 2017 Elected Officials Present Staff Present Diane Buckshnis, Councilmember Carrie Hite, PRCS Director Dave Teitzel, Councilmember Jeff Taraday, City Attorney Neil Tibbott, Councilmember Adrienne Fraley-Monillas, Councilmember Tom Mesaros, Council President Kristiana Johnson, Councilmember Mike Nelson, Council President Pro Tem Dave Earling, Mayor CALL TO ORDER/CONVENE IN JURY MEETING ROOM At 6:30 p.m., the City Council Special Meeting was called to order by Mayor Earling in the Council Chambers, 250 5t' Avenue North, Edmonds. 2. EXECUTIVE SESSION TO DISCUSS PENDING OR POTENTIAL LITIGATION PER RCW 42.30.110(1)(I) The City Council then adjourned to the Jury Meeting Room in executive session to discuss pending or potential litigation. The executive session concluded at 6:57 p.m. ADJOURN At 6:57 p.m., the meeting was adjourned. Edmonds City Council Draft Minutes October 3, 2017 Page 1 Packet Pg. 7 4.3 City Council Agenda Item Meeting Date: 10/10/2017 Approval of Council Meeting Minutes of October 3, 2017 Staff Lead: Scott Passey Department: City Clerk's Office Preparer: Scott Passey Background/History N/A Staff Recommendation Review and approve the draft meeting minutes on the Consent Agenda. Narrative N/A Attachments: Cmd100317 Packet Pg. 8 4.3.a EDMONDS CITY COUNCIL DRAFT MINUTES October 3, 2017 ELECTED OFFICIALS PRESENT Dave Earling, Mayor Thomas Mesaros, Council President Kristiana Johnson, Councilmember Michael Nelson, Councilmember Adrienne Fraley-Monillas, Councilmember Diane Buckshnis, Councilmember Dave Teitzel, Councilmember Neil Tibbott, Councilmember ALSO PRESENT Noal Leonetti, Student Representative 1. CALL TO ORDER/FLAG SALUTE STAFF PRESENT Al Compaan, Police Chief Phil Williams, Public Works Director Carrie Hite, Parks, Rec. & Cult. Serv. Dir. Shane Hope, Development Services Director Scott James, Finance Director Frances Chapin, Arts & Culture Program Mgr. Rob English, City Engineer Brad Shipley, Associate Planner Jeff Taraday, City Attorney Scott Passey, City Clerk Jerrie Bevington, Camera Operator Jeannie Dines, Recorder The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Earling in the Council Chambers, 250 5' Avenue North, Edmonds. The meeting was opened with the flag salute. 2. ROLL CALL City Clerk Scott Passey called the roll. All elected officials were present. 3. APPROVAL OF AGENDA COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 4. PRESENTATIONS 1. ARTS & HUMANITIES MONTH PROCLAMATION Mayor Earling read a proclamation proclaiming October as National Arts and Humanities Month in Edmonds, Washington, and calling upon citizens to celebrate and promote arts and culture and participate in some of the many cultural activities that flourish in the community. He presented the proclamation to Lesly Kaplan and several other Arts Commission members. Ms. Kaplan said Edmonds is known as a community that supports the arts and the proclamation is an opportunity to thank the Mayor, Council and community for their ongoing support. She urged citizens to experience the broad array of cultural events throughout October as well as all year. This weekend is the 32' Write on the Sound writers conference, presented by the Edmonds Arts Commission; the conference sold out in one week. She invited the public to attend a book signing reception in the Plaza Room on Saturday, October 7 at 5:50 p.m., an amazing opportunity to meet authors and up-and-coming writers. The Edmonds City Council Draft Minutes October 3, 2017 Page 1 Packet Pg. 9 Arts Commission encouraged the public to participate in the study the City is conducting about the impacts of arts and culture in Edmonds by completing the survey at www.surveymonkey.com/r/edarts. She also encouraged the public to look at the calendar of events on Edmonds.com and to attend one of many events happening in October. Councilmember Johnson inquired about the upcoming book sale. Ms. Kaplan said the Friends of the Library book sale is October 28 at the Frances Anderson Center in addition to the ongoing book sale at the library. 2. PRESENTATION ON "TAMING BIGFOOT" - EDMONDS Councilmember Buckshnis introduced Dr. Bob Bindschadler from Jefferson County where "Taming Bigfoot" began. He reviewed: • Their Motivation o Climate action outreach group wanted to help Jefferson County move toward a goal of 80% reduction of carbon emissions by calendar year 2050 o People were asking ■ What can/should I do? ■ Will my actions really make a difference? • Their goals o Education ■ Learn the relative effectiveness of various carbon cutting actions ■ Wrestle with the many tradeoffs to consider in formulating a greener lifestyle ■ Experience that individual -crafted approaches are more effective than prescribed solutions ■ Sharing the effort with teammates helps o Community building ■ Engaged agencies and businesses to be seen as partners not adversaries ■ Sustainability is a common good and common responsibility - Recognition that we are all hitched to the same wagon ■ Cooperative collective action is more effective than finger pointing o Fun ■ Humor ■ Prizes o Reduce greenhouse gas emission ■ Generate momentum toward county's emission reduction target ■ Provide data to measure reductions Their results - exceeded their expectations in ✓ Participation ✓ Education ✓ Community building ✓ Fun ✓ Reduce greenhouse gas emissions PLUS o Likes included ■ Team aspect ■ Customized carbon footprint calendar ■ Lighthearted/positive character o Outsiders and some insiders wanted us to repeat the competition o Need a `Bigfoot for business" o Share the activity with other green groups o Develop an app o Better educated/more informed and motivated citizenry Edmonds City Council Draft Minutes October 3, 2017 Page 2 Packet Pg. 10 ■ 50% participated in a Taming Bigfoot "check-up" one year later Recycling Coordinator Steve Fisher and liaison to the Taming Bigfoot group, presented: • How Taming Bigfoot came to Edmonds o The Jefferson County "Taming Bigfoot" concept was spread through Edmonds thanks to Dr. Bindschadler o A Steering Committee was formed! ■ Interfaith Climate Action members ■ Climate Protection Committee members ■ City Council members ■ Citizens at large (climate and data gurus) ■ Tree Board member ■ Edmonds Neighborhood Action Coalition member • Engaging Edmonds Businesses, Organizations, and City and State Leaders o Business & organizations can become a sponsor ■ ($100 prize donation or contribution to events fund) ■ 17 sponsors and counting o Businesses, organizations, and prominent leaders can become an endorser ■ 8 endorsers and counting o Business, organizations, leaders, individuals can donate a team prize! ■ 9 major prizes and counting • What will the contest do? o Combat climate change "one step at a time!" o Have good, clean (green) fun! o Empower us to change habits o Motivate ourselves to make permanent changes o Teach each other ways to reduce greenhouse gases o Elevate individual awareness o Make Greater Edmonds a leading community in the quest to build a sustainable future What do teams do? o On January 1, teams will begin recording their activities using the Taming Bigfoot App, gathering baseline data for the first month o The App is designed to calculate carbon emissions for team data throughout the competition o During February and March, teams then compete with each other to reduce carbon use o There will be gatherings to check -in and share ideas o Prizes will be awarded in many categories on or around Earth Day at the final, fun -filled celebration! What carbon footprint indicators are we tracking? o Home energy ■ Electricity ■ Natural gas ■ Heating oil ■ Wood pellets ■ Propane o Water use o Waste (non -recycled garbage) o Transportation (private and public) o Food (produced locally; organic) o Shopping (clothes, paper reading materials) We encourage teams to mix it up o Someone who is a green newbie and someone who is already green Edmonds City Council Draft Minutes October 3, 2017 Page 3 Packet Pg. 11 4.3.a o Someone who drives solo a lot and someone who does not o Someone who eats meat a lot and a vegetarian or vegan o A high home consumer and a low home energy user Kick-off Events o October 3rd - City Council presentation o October 24th - Community Kick-off ■ Edmonds Methodist Church Auditorium - 7 pm to 9 pm at ■ Guest speakers - Laura Tucker of Jefferson County (lessons learned from Taming Bigfoot) - Dr. David Montgomery (professor of geomorphology at the University of Washington) Dr. Shallin Busch (ecologist from NOAA) o November 2nd - 2nd Community Event ■ Holy Rosary Auditorium - 7 pm to 9 pm ■ Featuring Jeff Renner, Meteorologist o November 11t1i - Climate Movie ■ Edmonds Unitarian Universalist Church - 6:30 pm Watch for Bigfoot sightings Sign up today! Organize a Team! o Visit the website www.tamingbigfoot.edmondswa.gov o Attend a Bigfoot event! o Registration Starts Now! Ends December 31 st, 2017 Steering Committee Members o Cynthia Pruitt o Dave Teitzel o Diane Buckshnis o Doug Peterson o Emily Paynich o Gayla Shoemake o Gayle Leberg o Hank Landau o Kristiana Johnson o Monda Van Hollebeke o Sandra Distelhorst o Stan Gent o Steve Fisher Council President Mesaros commented it will be fun to see teams formed and asked about the typical team size. Mr. Fisher said Jefferson County had 7-member teams and each team member had a role. He envisioned Edmonds teams having 6-7 members but their roles are up to the team members. Councilmember Teitzel referred to Port Townsend's goal of 80% CO2 reduction by 2050 and asked the starting point for that calculation. Dr. Binschdlaer answered 1990 CO2 levels. With regard to Council President Mesaros' question, he said they originally thought there would be 6 teams but 15 teams applied. He looked forward to seeing how many teams organize in Edmonds. Councilmember Johnson asked how many family members are allowed to be on a team. Steering Committee Member Cynthia Pruitt answered one. Councilmember Buckshnis explained one team member per family is allowed to avoid double counting a household. The one family member will hopefully educate the other household members about lowering their carbon footprint or there could be a friendly competition where with family members on different teams. She noted people signing up can already have a team in place or sign up and be placed on a team. Edmonds City Council Draft Minutes October 3, 2017 Page 4 Packet Pg. 12 4.3.a Mr. Fisher encouraged everyone to visit at the website which includes a lot of information and more information to come once teams are signed up. He noted the App began as a side project but has progressed so rapidly it will be used as a trial run in Edmonds. Other jurisdictions in the region are also considering "Taming Bigfoot," including a group in Seattle. Ms. Pruitt commented the App will produce immediate information as teams will enter data quickly via a smartphone rather than on a tally sheet. 3. REET 101 PRESENTATION Parks & Recreation Director Carrie Hite explained this presentation is the result of a request by the Parks, Planning & Public Works Committee. She reviewed: State Law regarding use of REET funds: Item REET 1: RCW 82.46.010(6) REET 2: RCW 82.46.035 Fund/Title 126: Special Capital Improvement Fund 125: Park Improvement Fund State First quarter percent of REET receipts Second quarter percent of REET solely on Allowable solely on capital projects. capital projects, defined as : Projects "public works projects of a local "public works projects of a local government for planning, acquisition, government for planning, acquisition, construction, reconstruction, repair, construction, reconstruction, repair, replacement, rehabilitation, or replacement, rehabilitation, or improvement of streets; roads; highways; improvement of streets, roads, highways, sidewalks; street and road lighting sidewalks, street and road lighting systems; traffic signals; bridges; domestic systems, traffic signals, bridges, domestic water systems; storm and sanitary sewer water systems, storm and sanitary sewer systems; parks; recreational facilities; law systems, and planning, construction, enforcement facilities; fire protection reconstruction, repair, rehabilitation, or facilities; trails; libraries; administrative improvement of parks." and judicial facilities; river flood control projects." Edmonds Specialized Capital Projects Parks and Public Works projects Current Debt Service Policy and/or Street Overlays practice Land Acquisition Recent legislation o REET 2 funds may be used for those capital projects that qualify as REET 1 projects, including acquisition of land for parks, recreational facilities, law enforcement facilities, fire protection facilities, trails, libraries, administrative and judicial facilities and river flood control projects, limited to the greater of $100,000 or 25% of available funds, not to exceed $1M per year. It also requires additional reporting. o Allows cities (and counties) to use the first and second quarter REET for operations and maintenance purposes for all eligible categories in statute; cities and counties may use the greater of $100,000 or 25% of available funds, but not to exceed $1 million per year, ■ Maintenance means the use of funds for labor and materials that will preserve, prevent the decline of, or extend the useful life of a capital project. ■ Requires additional reporting requirements. ■ Expired in 2015 and was extended, no expiration date o Use of REET 2 funds can be used for a limited time for the acquisition, construction, improvement, or rehabilitation of facilities to provide housing for the homeless. ■ Subject to the greater of $100,000 or 25% of available funds, not to exceed $lM per year. ■ Effective July 1, 2017 — June 30, 2019. Edmonds City Council Draft Minutes October 3, 2017 Page 5 Packet Pg. 13 4.3.a ■ Requires additional reporting requirements. Reporting requirements o The local government must prepare a written report demonstrating that is has, or will have, adequate funding from all sources of public funding to pay for all capital projects identified in its Capital Facilities Plan for a two-year period. The report must be adopted as part of the city's regular budget process. Edmonds City Code; REET 1 0 3.29.010, imposing REET for Special Capital Improvement Fund(Fund: 126 ). o All proceeds from the tax imposed by this section ...shall be used for capital improvements, including those listed in RCW 35.43.040 (now RCW 82.46.010 ). o (Ord. 2462, 1984) Edmonds City Code: REET 2 0 3.29.015, imposing additional REET ( Fund 125). o Revenues generated from this tax shall be used solely for the financing of projects specified in a capital facilities plan element of a comprehensive plan approved by the city council. (Ord. 3031, 1995). 0 3.29.017 Creation of special fund to be known as the "real estate excise tax 2 parks improvement fund" into which shall be deposited all proceeds of the tax imposed by ECC 3.29.015. • REET Revenues 2014 2015 2016 2017 BEET 1 $936,632 $1,385,708 $1,549,293* $1,400,000** REET 2 $938,966 $1,388,126 $1,299,330 $1,400,000** Total REET $1,875,598 $2,773,834 $2,848,623 $2,800,000 Ms. Hite reviewed 2017 REET funded Parks projects: Parks Project Amount REET Notes Anderson Center Stage Bandshell Replacement $249,690 2 Brackett'sLanding Restroom Upgrade $18,000 2 Fishing Pier Rehabilitation/Restroom $175,000 2 $75K CO to 2018 Community Garden Establishment $155,000 2 CO to 2018 Meadowdale Pla field Field replacement $500,000 2 Partnership Mathay Ballinger Trail development $20,000 2 CO to 2018 Seaview Park Restroom roof/tennis crt $50,000 2 $25K CO to 2018 Waterfront Redevel. Sr. Ctr/Ebb tide $625,000 1 & 2 $175K CO to 2108 Yost Pool Spa, misc upgrades $150,000 2 $35K CO to 2018 4thAvenue Parklet $40,000 2 CO to 2018 City Gateway Replacement $40,000 2 Flower Poles Replacement $20,000 2 Marsh Walkway Rebuild $50,000 2 CO to 2018 Matha , Seaview, City Parks Outdoor Fitness Zones $75,000 2 Pending ant Civic Stadium Demolition $100,000 2 City Park Storage Rebuild $200,000 2 CO to 2018 Citywide Beautification Flower Program $21,000 2 Ongoing Misc Paving Park system $10,000 2 Park Improvements Citywide $40,000 2 Jetty Repair Sports Field upgrades Citywide $20,000 2 Edmonds Marsh Feasibility Daylighting Willow Creek $30,000 2 Civic Center Survey, geotech $20,000 2 Veteran's Plaza New construction $157,000 2 Edmonds City Council Draft Minutes October 3, 2017 Page 6 Packet Pg. 14 4.3.a Land Acquisition I Shell creek wetland 1 $200,000 1 1 1 $130K CO to 2018 Public Works Director Phil Williams reviewed 2017 REET funded Public Works projects: Public Works Project Amount REET Notes Street Preservation Design, Construction $1,300,000 1 & 2 Program ADA Curb Ramps Install pedestrian curb ramps $44,775 1 & 2 to ADA standards. Audible Pedestrian Upgrade 3 traffic signals $20,000 2 Signals Minor Sidewalk Program Construction of missing $127,100 1 & 2 sections of sidewalk 236t1i St. Walkway Design, Construction of new $135,981 1 sidewalk ADA Transition Plan Citywide ADA assessment of $76,000 1 street ri ht of way Protective/Permissive Protective/Permissive left turn $15,855 1 Signal Modifications signal modifications Traffic Calming Program Design and construction of $20,000 1 traffic calming devices Trackside Warning Install system at Main and $300,000 1 System Dayton Streets. Hwy 99 Revitalization Preliminary Design Phase $300,000 1 Project 220t1i St. Signal Traffic Signal Coordination $47,000 1 Partnership with Coordination on 220' St. (Hwy 99 to 76th City of Mountlake Ave) Terrace 89t' PI W Retaining Wall Replace failing retaining $16,400 1 wall —Preliminary design Building Maintenance Begin maintenance backlog $300,000 1 on City owned facilities Councilmember Fraley-Monillas referred to the park improvement fund under REET 2 and asked when that was approved by Council. Ms. Hite responded it is stated in the code; she can research when it was approved. Councilmember Buckshnis recalled the discovery that the $750,000 limit established in 2009 was not adopted in a resolution. Ms. Hite answered it was a financial policy passed by Council and stated in the budget book for several years: the first $750,000 of REET 2 would be spent for parks and the remainder as well as REET 1 spent on anything else. She agreed it was never adopt via a resolution or ordinance. If the Council wanted to change the regulations in the ECDC, Councilmember Buckshnis asked whether that needed to go through the Planning Board. Mr. Williams responded it would be done via the normal process but could also go through Planning Board if the Council desired. Councilmember Buckshnis suggested it may be preferable to go through the Planning Board due to the nature of REET funds. Ms. Hite recommended that process if the Council amenable to it; the City Attorney could draft an ordinance to change the use of REET 2. Councilmember Buckshnis commented on strong feelings in the community about the use of REET funds. City Attorney Jeff Taraday said the code identifies which ordinances go to the Planning Board; he did not think this would. The City Council could hold a public hearing to get feedback on proposed changes. Edmonds City Council Draft Minutes October 3, 2017 Page 7 Packet Pg. 15 4.3.a Councilmember Tibbott observed the fund balance was fairly steady between 2015 to 2017, prior to that it was lower. He asked what level of REET revenue was expected in the future and if funds were not as abundant in the future, what expenditures could be omitted. Ms. Hite answered the CIP projections for REET revenues level off and begin to decline in the out years; for example, REET revenues in 2023 are estimated at $1 million for each 1/4% ($2 million total compared to the current $2.8 million). She acknowledged it was a guessing game but she was hopeful it would remain at $1 million in 2023. If REET funds decrease, staff balances the priorities in the Comprehensive Plan via the CIP; the Council has the ability to reprioritize. Councilmember Tibbott relayed his understanding there was no established percentage for funding parks and public works projects. Mr. Williams agreed estimating revenues was tricky; for example, no one expected the last recession to be as deep or last as long as it had or the huge impact it had on REET revenues. The increasing value of real estate may make the bottom of any future cycle less low than it was the last time and he liked to think the country has taken steps to avoid a dramatic recession from occurring. He concluded REET revenues fluctuate; the top and the bottom are anyone's guess. Councilmember Teitzel referred to recent legislation and the use of REET 2 funds for constructing and improving facilities to provide housing for the homeless which expires in 2019.Observing that the homeless issue in Edmonds as well as other cities is increasing, he asked why that use has a time limit. Mayor Earling answered that is what the legislature decided. Councilmember Teitzel commented that was disappointing. Councilmember Teitzel referred to the 2017 REET funded project Marsh Walkway Rebuild that is being carried over into 2018, commenting that was a safety issue as the boardwalk is rotting and covered with plywood in places. Ms. Hite answered there have been surface repairs to the walkway; the $50,000 for that project is to repair the foundation. She assured the walkway was safe; it would not be open if it were not safe. Councilmember Johnson thanked Ms. Hite and Mr. Williams for developing this presentation, noting due to new legislation and new Councilmembers, it was helpful to learn the rules before the budget process. She thanked Mayor Earling's administration, noting without him, the City would not be doing much paving. Councilmember Johnson recalled serving on the Transportation Committee during the $750,000 policy years and during the recession, REET revenue never exceeded $750,000. She asked about Parks and Public Works' process for developing project lists. Mr. Williams said it depends on the underlying planning documents that identify needs, matching funding with projects as well as a risk analysis, and matching funds from REET and other funding sources such as grants to develop as much meaningful capital work as possible. He acknowledged it was a moving target and often more art than science. Ms. Hite answered the PROS Plan, which was subject to a lot of public input, is her guide; she looks at the big and small ideas and identified capital projects for each park. That is balanced with available grants to determine which projects would be the most competitive and the highest priorities in the PROS Plan. One of the bigger projects that has been completed since the 2014 adoption of the PROS Plan is the acquisition of Civic Field using grants and matching/leveraged funds; of the $1.9 million acquisition, the City spent $400,000. As the City has limited capital funds, she tries to leverage grants to attract more money to the community and address some of the smaller projects. Geographic location of improvements is also a consideration. Councilmember Johnson commented it is helpful for the Council and the public to understand the process. Mayor Earling commented REET revenue has increased substantially over the last three years; He expressed appreciation for Ms. Hite and Mr. Williams' working together to bring good results for the City. 5. AUDIENCE COMMENTS Edmonds City Council Draft Minutes October 3, 2017 Page 8 Packet Pg. 16 4.3.a Alvin Rutledge, Edmonds, relayed citizens in the community are asking what going on with the Edmonds Marsh. The Puget Sound area includes the Edmonds Marsh and Lake Ballinger. Lake Ballinger has six miles of waterfront. He recommended Lake Ballinger be included in any study of Edmonds Marsh. Carin Chase, Chair, Snohomish County Commission on Human Rights, expressed gratitude for the Council's leadership in passing the Indigenous Peoples Day resolution, showing a more balanced representation of the region's long cultural history. Last week, following Edmonds' passage of the resolution, the Snohomish County Council also unanimously passed a resolution recognizing next Monday as Indigenous Peoples Day. She expressed her thanks on behalf of the entire county. Don Hall, Edmonds, announced Thursday is the grand opening of the new exhibit at Cascadia Art Museum, "Territorial Hues: The Color Print and Washington State 1920-1960" in all five galleries. He encouraged the public to visit the museum. 6. APPROVAL OF CONSENT AGENDA ITEMS COUNCIL PRESIDENT MESAROS MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OF SEPTEMBER 25, 2017 2. APPROVAL OF COUNCIL MEETING MINUTES OF SEPTEMBER 26, 2017 3. APPROVAL OF CLAIM CHECKS 4. AUTHORIZATION TO CONTRACT WITH JAMES G. MURPHY TO SELL SURPLUS CITY EQUIPMENT 5. SRDGTF ILA AMENDMENT/JOINT SGT. FUNDING ILA WITH LYNNWOOD 6. STREET RIGHT OF WAY DEDICATION FOR 8632 184TH ST SW 7. NEW EMPLOYEE POSITION UPGRADE: BUILDING DIVISION 7. PUBLIC HEARING PLANNING BOARD RECOMMENDATION TO CHANGE THE COMPREHENSIVE PLAN LAND USE DESIGNATION FOR PROPERTIES AT 9111 AND 9107 - 236TH ST. SW FROM SINGLE FAMILY URBAN 1 (SFUl) TO EDMONDS WAY CORRIDOR (EWC) Development Services Director Shane Hope provided an introduction, advising the final decision on this issue would be part of the Comprehensive Plan adoption later this year. Associate Planner Brad Shipley reviewed: • Process: Type V Legislative Action o Application o Public hearing before Planning Board o Public hearing before City Council o City Council takes action on all Comprehensive Plan amendments collectively o If Comprehensive Plan amendment is approved, applicant may submit for a rezone to a compatible zoning classification • Aerial of subject site Edmonds City Council Draft Minutes October 3, 2017 Page 9 Packet Pg. 17 4.3.a 0 9111 and 9107 236t1i SW, east of Edmonds Way o Madrona school to the west Proposal o Change Comprehensive Plan designation from Single Family Urban 1 to Edmonds Way Corridor for 2 parcels 9111 and 9107 ■ Adjacent properties to the east are currently designated Edmonds Way Corridor ■ Adjacent properties to the west are currently designated Single Family Urban 1 Applicant intends to apply for rezone if Com rehensive Plan amendment is approved Comprehensive Plan Designation Land Use Type Compatible zoning classification Edmonds Way Corridor Commercial BP, BN, BC or other similar commercial zone; RM • Criteria o Pursuant to ECDC 20.00.050, comprehensive plan amendments may only be adopted if the following findings can be made: 1. Is the proposal consistent with the Comprehensive Plan and in the public interest? Response: Increasing multi -family opportunities near transit is in the public interest and consistent with the Comp Plan. 2. Is the proposal detrimental to the public interest, health, safety or welfare of the City? Response: This proposal is simply an amendment to change the Comp Plan land -use designation. 3. Does the proposal maintain the appropriate balance of land uses within the City? Response: Land Use Designation Total Sq Acres % of City Lands % Change in Designation Existing Proposed SFU1 2,528 43.5% 43.45% 0.030% EWC 77 1.3% 1.31% 0.9% All Single -Family 4,325 1 74.37% 74.38% 0.017% All Multi -Family and Commercial Mixed -Use 910 15.65% 15.67% 0.082% 4. Is the parcel physically suitable for the requested land use designation? Response: The site has access and utilities and the proposed land use is compatible with adjoining land uses. Map of existing zoning in the area o Parcels to east are zoned RM1.5 o Parcels to the west are zoned single family RS8 Councilmember Buckshnis referred to the map of the existing zoning and asked how 9111 has a driveway to 2361 St SW and whether the properties had the same owner. Mr. Shipley said there are two different property owners. The properties were developed in 1950-1970 prior to annexation. Councilmember Buckshnis asked if the property to the east has always zoned been EWC. Mr. Shipley was not certain when the EWC designation was established. Councilmember Tibbott how many different Comprehensive Plan designations there are in the City and if they all have a menu of allowed uses. Mr. Shipley answered there are 13-15 designations and each designation has a list of compatible zones. Ms. Hope clarified some designations are tied to a particular area/corridor such as Edmonds Way, others are not such as single family or multi -family. Councilmember Tibbott asked how many geographically oriented designations there are. Ms. Hope answered only a couple. Councilmember Tibbott observed there is quite a lot of multi -family around this property so it appears to be in a transition zone, making it a logical place to extend that zoning if the property owners moved forward with a rezone. Mr. Shipley agreed most of the parcels along Edmonds Way are zoned multi -family. He Edmonds City Council Draft Minutes October 3, 2017 Page 10 Packet Pg. 18 4.3.a displayed the map of existing zoning, identifying high density multi -family to the east. Councilmember Tibbott referred to the agenda memo which stated it would be unlikely the property owners would ask for commercial zoning. Mr. Shipley answered the property owners have indicated they plan to request multi- family zoning. Councilmember Johnson Mr. Shipley email the PowerPoint to Councilmembers and requested it be included in the Council packet in the future. Mayor Earling asked what action staff was seeking. Ms. Hope clarified the final decision would be made when the Comprehensive Plan is adopted but staff is seeking general approval about changing the Comprehensive Plan designation from Single Family Urban 1 to Edmonds Way Corridor. Mayor Earling opened the public participation portion of the public hearing. There was no one present who wished to provide testimony and Mayor Earling closed the public hearing. Councilmember Fraley-Monillas said she was not certain she could vote tonight because she was overwhelmed by some of the questions and answers and would like an opportunity for further review. Ms. Hope commented the Council could vote, indicate a concurrence to move forward or ask staff to return with more information. Councilmember Johnson commented it has been the Council's policy not to make a decision at the meeting when an item is presented for the first time. Ms. Hope clarified staff is not asking for a final decision but rather whether to move the amendment forward in the process. The next step would be either another meeting with the Council or direction to move the amendment forward and make a final decision as part of Comprehensive Plan amendment process. Councilmember Fraley-Monillas asked when the Comprehensive Plan update is presented to Council. Ms. Hope answered next month. COUNCIL PRESIDENT MESAROS MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO ASK STAFF TO TAKE THIS TO THE NEXT STEP IN THE DISCUSSION, KNOWING A FINAL DECISION WILL OCCUR IN NOVEMBER. Councilmember Fraley-Monillas reiterated she would like time to review the comments and answers. Council President Mesaros said that was the intent of moving it forward to the next step and final approval at a later date. Councilmember Buckshnis said she would like the amendment to come to the Council one more time to allow Councilmember Fraley-Monillas time for additional review. She noted there was no public comment, but there may be interest once it hits the media. She questioned whether the intent was affordable multifamily. Council President Mesaros restated the motion as follows (with the agreement of the second): TO HAVE A TWO STEP PROCESS TO ALLOW COUNCILMEMBERS TO GET THEIR QUESTIONS ANSWERED. Councilmember Fraley-Monillas inquired about the two-step process. Ms. Hope relayed her understanding the public hearing would be first step and staff would return to another Council meeting for a more formal decision with a final decision at the time the Comprehensive Plan is adopted. MOTION CARRIED UNANIMOUSLY. Edmonds City Council Draft Minutes October 3, 2017 Page 11 Packet Pg. 19 4.3.a 8. ACTION ITEMS 1. NEW EMPLOYEE POSITION UPGRADE: ENVIRONMENTAL PROGRAMS MANAGER Development Services Director Shane Hope explained the State and City have complex environmental regulations that require expertise to provide analysis at the staff level, bring issues to the Planning Board and City Council as well as keep track of issues. The City has a staff person who is particularly good at that but there has not been a job description for that level of expertise. The proposal is to add a new job description that more accurately describes that person's role as well as could be used to hire a person with that level of expertise in the future. As part of a modest reorganization of the Development Services Director, Ms. Hope proposed clarifying the position as an Environmental Programs Manager. This is not a request to add more staff, only to change that position. The cost of salary and benefits for the remainder of 2017 is $1,761 and $12,939 in 2018. She relayed the Public Safety & Personnel and the Finance Committees reviewed the position upgrade and recommended forwarding it to Council. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE THE NEW EMPLOYEE POSITION UPGRADE: ENVIRONMENTAL PROGRAMS MANAGER. MOTION CARRIED (6-0-1) COUNCILMEMBER JOHNSON ABSTAINING. 2. APPROVAL OF COUNCIL LEGISLATIVE /ADMINISTRATIVE ASSISTANT POSITION ANNOUNCEMENT Councilmember Nelson relayed the position description has been revised slightly to combine the scope of work/position duties of the administrative assistant and legislative assistant and to add to working conditions the ability to work in a solitary environment. He sought any additions/changes before the position announcement is published. Council President Mesaros said he has been working on this draft with HR Director Mary Ann Hardie; she suggested the four questions in the narrative be included with position announcement to allow the candidate to self -declare their qualifications prior an interview. If the Council approves the position announcement, he plans to meet with Human Resources tomorrow morning to begin the recruitment process. Councilmember Fraley-Monillas advised the questions in the narrative were used in the previous recruitment for the position. She suggested adding a requirement for experience in communications such as the ability to do press releases and provide information to the media. Councilmember Johnson recalled when the position was filled 1 %2 years, initially the Council planned to hire a part-time secretary and a part-time legislative assistant. She recalled a recommendation to combine the two which she noted had advantages and disadvantages. One of the disadvantages is those are two different skill sets; the Council needs an administrative assistant to handle data requests and felt a part-time legislative assistant would be adequate. She suggested a part-time administrative assistant and a full-time legislative assistant, commenting it was difficult to find one person with expertise in both. Councilmember Tibbott suggested adding verbiage regarding the scope of research the person would conduct and clarifying whether this person would write legislation, or only research and compile information. Edmonds City Council Draft Minutes October 3, 2017 Page 12 Packet Pg. 20 4.3.a Councilmember Teitzel referred to the first bullet in the agenda memo, "Describe a legal research project you worked on..." commenting that was too narrow and implied law clerk type work. The type of research he has requested from this person in the past has been much broader such as what other cities have done, etc. He suggested striking "legal" from the first bullet. He referred to the sixth bullet under Essential Functions and Responsibilities, "Plans and performs complex administrative office coordination; relieves the Council President of technical clerical and administrative duties having Council -wide," suggesting something was missing from the end of the statement such as "impact." To Councilmember Fraley-Monillas' comment, Councilmember Buckshnis referred to the fifth bullet under Essential Functions and Responsibilities, "Coordinates and prepares press releases for Council as requested and/or various community relations" as well as the ninth bullet related to preparing correspondence. She commented the ideal candidate did not need to be an attorney but someone able to conduct research. To Councilmember Johnson's suggestion, Councilmember Buckshnis said a highly functioning, multitasking individual could do everything from timesheets to research. She did not support separating the positions and felt the pay grade was too high. As a staff person to an elected official many years ago, Councilmember Nelson agreed the position had many duties, mixing legislative, staffing and administrative work which occurs at the local, state and federal level. There are people with these skill sets who are not attorneys and have the ability to conduct research as well as write legislation. He was confident the Council could find the right fit for the position. Councilmember Fraley-Monillas said the Council needed someone who could write legislation. Of the applicants interviewed last time, only one had a law degree, the others had various degrees and experience. Having worked closely with legislative aids during her career, she agreed it was possible to find the right person. She suggested being more cautious about the requirements upfront. It was the consensus of the Council for Council President Mesaros and Councilmember Nelson to incorporate the Council's suggestions into the description and move forward with Human Resources. 9. COUNCIL COMMITTEE MEETING REPORTS 1. COUNCIL COMMITTEE REPORTS Finance Committee Councilmember Buckshnis reported the committee discussed: • New Job Descriptions for Two Employee Positions (Environmental Programs Manager and Senior Plans Examiner) — approved on tonight's agenda • PFD Bond Refinancing — request for information Public Safety & Personnel Committee Councilmember Nelson reported the committee discussed: • Snohomish Regional Drug and Gang Task Force (SRDGTF) ILA Amendment/Joint Sgt. Funding ILA with Lynnwood — Approved on Consent Agenda • Updates to Two Employee Position Descriptions (Environmental Programs Manager and Senior Plans Examiner) — Approved on tonight's agenda • Briefing on Assignment of Fire and EMS Services by the Regional Fire Authority (RFA) — Information only Parks, Planning and Public Works Committee Councilmember Tibbott reported the committee discussed: Edmonds City Council Draft Minutes October 3, 2017 Page 13 Packet Pg. 21 4.3.a • Authorization to Contract with James G. Murphy to Sell Surplus City Equipment — Approved on Consent Agenda • Ordinance Amending Section 8.16.040 of the Edmonds City Code (ECC), Amending the Speed Limit along a Section of SR-524 — Approved on Consent Agenda • 318 Howell Street Dedication — Approved on Consent Agenda • Street Right of Way Dedication for 8632 184th St. SW — Approved on Consent Agenda • Accept Easement for an Emergency Fire Lane as part of the Woodway Court II Plat — Approved on Consent Agenda • Introduction of New Franchise for Verizon-MCI — Future presentation to Council 10. REPORTS ON OUTSIDE BOARD AND COMMITTEE MEETINGS Councilmember Johnson reported the Snohomish County Tomorrow meeting was well attended; Councilmembers Teitzel, Tibbott Fraley-Monillas and she attended. The meeting included a presentation by Joe Tovar regarding a planning process he is doing with the Ruckelhaus Center, a 30,000-foot level study of GMA over the past 25 years from a global perspective. There will be one meeting next year for Snohomish County, all the counties in the state will be involved and it will be an opportunity for Councilmembers to weigh in. She suggested Snohomish County Tomorrow, Snohomish County Cities Association and Economic Alliance of Snohomish County collectively provide an opportunity for businesses, electeds and citizens to provide input. She encouraged citizens to participate in "Taming Bigfoot." Councilmember Nelson reported the Snohomish County Emergency Radio System (SERS) Board approved the replacement of a trailer, discussed an RFP for a new emergency radio system which will be a high cost item for Snohomish County, and approved modifications to the Board to recognize the new RFA. Councilmember Fraley-Monillas reported the Disability Board is looking at long term care for some retired firefighters and law enforcement. The Diversity Commission discussed the Indigenous Peoples resolution which the Council approved at a previous meeting. The Diversity Commission's October meeting is tomorrow. She relayed the Snohomish Health District is part of a joint task force with the Snohomish County Sheriff s Office, and the Everett Police Department exploring ways to coordinate services to avoid duplication related to the opioid crisis. She also visited the Stillaguamish Tribal Center and spoke with the Tribe regarding a number of issues. She attended the new Mayor's Housing Task Force which that included discussion regarding issues associated with affordable housing. Council President Mesaros reported he served on the SERS RFP committee; they met five times and have completed their work. Replacement of the emergency radio system has a high cost but will be an important investment for Snohomish County. He reported the SNOCOM/SNOPAC discussions continue; a draft ILA has been prepared which Mr. Taraday is reviewing. The combined boards approved new bylaws for the new organization which the City Council will have an opportunity to review. A transition board has been elected to serve if/when the ILA is approved; himself, Brier Mayor Bob Colinas and Mill Creek Mayor Pam Pruitt representing SNOCOM, Lynnwood Councilmember George Hurst as an alternate, and three members representing SNOPAC including Snohomish County Sheriff Ty Trenary. Council President Mesaros relayed he was elected president of the interim board and Sheriff Trenary was elected vice president; the board is anticipated to serve for approximately three weeks until a permanent board is appointed. Council President Mesaros reported the Edmonds Public Facilities District did not meet during September. Their auction on September 23, which he and Mayor Earling attended, raised in excess of $300,000. The Seashore Transportation Forum meeting included review of the Metro Strategic Plan and coordinating that with other transportation authorities such as Community Transit and Sound Transit. Edmonds City Council Draft Minutes October 3, 2017 Page 14 Packet Pg. 22 4.3.a Councilmember Teitzel reported the Port is doing well financial; their operation volumes are up significantly and they plan to add a new FTE to address marina operation volumes. The Port is in the process of permitting the vacant land south of the board yard and hope to have that completed by yearend. Having the permitting complete will assist with marketing the property to a potential tenant, anticipated to be a marine -based tenant such as yacht broker. The Port is working on beautification of the Harbor Square sign on the southwest corner of SR-104 and Dayton. The State owns part of the property so any improvements must be negotiated with the State. The Port's bonds for Harbor Square will be paid off in January 2020 which will improve profitability. Councilmember Teitzel reported the Historic Preservation Commission (HPC) held a public hearing in September to add the white cape cod house on 3' & Caspers, a Montgomery Ward kit house, to the historic registry. The HPC's recommendation will be presented to the City Council on October 17. The HPC is considering two homes owned by the Yost family for designation. The 2018 Edmonds historical calendar has been developed and has a 1950's theme. Councilmember Teitzel reported on the Washington Wildlife and Recreation Coalition, cofounded by Dan Evans and Mike Lowry. Mrs. Lowry as well as Mr. Evans were in attendance at a recent breakfast to receive recognition for their work, a great example of bipartisanship where republican and democratic governors worked closely to create something great for the state. Councilmember Tibbott reported the Economic Development Commission has four subcommittees: Affordable Housing which explores data and affordable housing ownership in the City, Civic Facilities which explores utilization of properties owned by the City, Art Subcommittee that seeks to elevate the public profile of arts in Edmonds, and Development Feasibility which explores ways to incentivize development especially vacant and underutilized property in the City. Councilmember Tibbott reported on the Edmonds School District's Race and Equity discussion, an important discussion as the district adopts a race and equity policy which will affect all the schools in the district, many of which are in Edmonds. The district completed an extensive study in July related to race and equity and the findings are available online. He reported the Alliance for Housing Affordability did not meet this month. Councilmember Buckshnis reported the Mayors Climate Protection Committee's focus has been on "Taming Bigfoot." The Tree Board is sponsoring an Arbor Day event on Saturday at Hickman Park, a celebration of the rain gardens' restoration as well as tree planting and a free presentation at 10 a.m. She reported WRIA 8 passed the WRIA 8 Renewal Plan Update which extends the 10-year plan for 10 years. The Plan will be presented to the Council early next year. WRIA 8 heard a fascinating presentation on the of the Ballard Locks economic impact study that considers the impact of a failure of the locks from an earthquake. She reported the Pacific Coastal Salmon Recovery fund received $65 million in the Senate Commerce, Justice and Science bill. 11. MAYOR'S COMMENTS Mayor Earling reported he had a great opportunity to observe and judge at the Edmonds-Woodway High School homecoming contest; he found the students' energy and excitement fabulous. He reported he also attended the Snohomish County Tomorrow meeting. Mayor Earling announced Saturday is the last summer market of the year. He reported on a meeting with Congresswoman Jayapal, Lacey Harper (representing Snohomish County Executive Dave Somers, Snohomish County Councilmember Stephanie Wright, ECA, Economic Alliance of Snohomish County, SnoIsle Library, Patrick Doherty and himself. During the open discussion, he highlighted the importance Edmonds City Council Draft Minutes October 3, 2017 Page 15 Packet Pg. 23 4.3.a of the waterfront access project, arts as an economic driver, the marsh and Highway 99 development as well as the City's desire to develop more affordable housing in the community. 12. COUNCIL COMMENTS Councilmember Johnson asked about the new name for the combined SNOCOM/SNOPAC. She referred to October as Arts and Humanities Month proclamation and said information regarding activities such as the scarecrow contest, the book sale, the Edmonds market, Halloween Howl, trick/treating, etc. are available on My Edmonds News and the City's website. She encouraged the public to enjoy the arts including the Write on the Sound book signing reception. Councilmember Fraley-Monillas suggested the Council hear more about what the Economic Development Commission (EDC) doing, relaying at the housing consortium, an EDC member expressed frustration with the Council and City. She did not want the EDC to feel the Council was not listening or did not care. Councilmember Fraley-Monillas referred to emails about potentially banning plastic straws, lids, utensils and Styrofoam. She suggested Councilmembers talk with the Chamber of Commerce, the BID and businesses before proceeding. Councilmember Fraley-Monillas was saddened by the tragedy in Las Vegas and urged the public to keep those affected in their thoughts including those in attendance, first responders, doctors, nurses and everyone who assisted. She hoped as a society we could figure out a better way. In response to Councilmember Johnson's inquiry about the new name of the combined SNOCOM/SNOPAC, Council President Mesaros said the board members of each organization and staff were asked to submit potential names. A task force considered the suggestions and made a recommendation at the last joint meeting where the new name, Snohomish County 911, was approved. Councilmember Teitzel read the following statement: "Over the past, two days, I've gone through a range of emotions -from shock to sadness to anger. I'm still angry. Newtown, Connecticut. Aurora, Colorado. Oakland, California. Clackamas, Oregon. Orlando, Florida. Las Vegas, Nevada. Seattle, Washington. Mukilteo, Washington. These are just a few of the communities that, in the past five years, have suffered incidents of multiple deaths and injuries at the hands of a gunman using a semiautomatic firearm. I'm sick of it. I'm sick of saying platitudes like "our thoughts and prayers are with them." I'm sick of the deaths and permanent disabilities suffered by the victims. I'm sick of the spirit of fatalism that there is nothing to be done because the Constitution prevents it. I fully support the Second Amendment to our Constitution. Citizens should have the right to lawfully carry handguns to protect themselves. Hunters should have the right to own hunting rifles to hunt big game. Sportsmen should have the right to own shotguns to hunt game birds. However, semiautomatic firearms have but one purpose: to kill and maim as many humans as fast as the shooter can pull the trigger. How fast can a trigger be pulled? 60 times per minute? 120 times per minute? More? As elected officials, one of our primary duties is to keep our constituents safe and secure. We need to take action to reduce the potential for mass killings we continue to witness. We can do that by supporting our state Attorney General's efforts to introduce legislation to ban semiautomatic assault rifles in Washington. We can do that by urging our federal legislators to enact federal legislation to curb the proliferation of semiautomatic firearms. We can do that by exploring local measures in Edmonds and Snohomish County to severely restrict semiautomatic firearm ownership. Will these measures prevent gun violence? No. But if they result in a reduction in the number of sons, daughters, brothers, sisters and parents slain or Edmonds City Council Draft Minutes October 3, 2017 Page 16 Packet Pg. 24 4.3.a permanently injured in shootings in which semiautomatic firearms are used, they are well worth pursuing. Let's not surrender to fatalism. Let's do something." Councilmember Tibbott acknowledged Councilmember Teitzel's sobering words and thanked him for taking the time to write and read them. He reported on the Community Emergency Response Team (CERT) training he is taking; the first meeting was last night and the next meeting is Thursday where the topic is fire suppression. Approximately 25 people from south Snohomish County are participating and there is still space available. The presenter and his assistant as well as 12 of the 25 people are from Edmonds. The training is an asset for the community. He reported the new RFA, South Snohomish County Fire and Rescue, known as Snohomish County Fire, began service on October 1. In response to Councilmember Fraley-Monillas' comment about the EDC, Councilmember Tibbott suggested having the EDC provide an update to the Council in 2018 regarding what they are doing and ideas they are considering. He noted one of the functions of the EDC is to brainstorm opportunities and ideas that may be worth pursuing in the future, but not necessary take action on all of them. Councilmember Buckshnis advised of the Arbor Day celebration on Saturday at Hickman Park. People only need to show up; tools, gloves and food will be provided. She will be at the Halloween Howl on Saturday from 11 a.m. to 2 p.m. at the Off -Leash Edmonds dog park. 13. CONVENE IN EXECUTIVE SESSION REGARDING PENDING OR POTENTIAL LITIGATION PER RCW 42.30.110(1)(i) This item was not needed. 14. RECONVENE IN OPEN SESSION. POTENTIAL ACTION AS A RESULT OF MEETING IN EXECUTIVE SESSION This item was not needed. 15. ADJOURN With no further business, the Council meeting was adjourned at 9:20 p.m. Edmonds City Council Draft Minutes October 3, 2017 Page 17 Packet Pg. 25 4.4 City Council Agenda Item Meeting Date: 10/10/2017 Approval of claim, payroll and benefit checks, direct deposit and wire payments. Staff Lead: Scott James Department: Administrative Services Preparer: Nori Jacobson Background/History Approval of claim checks #227664 through #227772 dated October 5, 2017 for $1,201,264.80. Approval of replacement payroll check #62850 dated September 28, 2017 for $32.14. Approval of payroll direct deposit and checks #62851 through #62857 and #62867 for $518,653.94, benefit checks #62858 through #62866 of $518,396.10 for the pay period September 16, 2017 through September 30, 2017. Staff Recommendation Approval of claim, payroll and benefit checks, direct deposit and wire payments. 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. Attachments: claim cks 10-05-17 FrequentlyUsedProjNumbers 10-05-17 payroll summary 10-05-17 payroll summary 10-05-17b payroll benefit 10-05-17 Packet Pg. 26 4.4.a vchlist Voucher List Page: 1 10/05/2017 8:09:52AM City of Edmonds 3 c Bank code : usbank 0 Voucher Date Vendor Invoice PO # Description/Account Amoun 0- m 227664 10/5/2017 070322 A&A LANGUAGE SERVICES INC 15-53115 SPANISH INTERPRETER PDA 08/20 SPANISH INTERPRETER PDA 08/20 L 001.000.23.512.50.41.01 182.8( 'D 15-53901 KOREAN INTERPRETER COURT 09 Y KOREAN INTERPRETER COURT 09 001.000.23.512.50.41.01 184.2z Total : 367.01 4- a) 227665 10/5/2017 068857 AMEC FOSTER WHEELER ENVIRO S51700095 TO 17-01.PERRINVILLE CREEK - Fl; r- a) TO 17-01.PERRINVILLE CREEK - F[ 422.000.72.531.40.48.00 2,367.5( Total: 2,367.5( — 0 227666 10/5/2017 069751 ARAMARK UNIFORM SERVICES 1990370008 PARKS MAINT UNIFORM SERVICE L PARKS MAINT UNIFORM SERVICE a 001.000.64.576.80.24.00 57.3, E 1990373932 PUBLIC WORKS OMC LOBBY MATE PUBLIC WORKS OMC LOBBY MATE - 001.000.65.518.20.41.00 1.6' o PUBLIC WORKS OMC LOBBY MAT: > 111.000.68.542.90.41.00 6.1' PUBLIC WORKS OMC LOBBY MAT: 421.000.74.534.80.41.00 6.1' Q PUBLIC WORKS OMC LOBBY MAT: ti 422.000.72.531.90.41.00 6.1' L6 PUBLIC WORKS OMC LOBBY MATE c 423.000.75.535.80.41.00 0 6.1' r PUBLIC WORKS OMC LOBBY MATE Y 511.000.77.548.68.41.00 6.0£ U 10.3% Sales Tax E 001.000.65.518.20.41.00 0.1 6 10.3% Sales Tax +% 111.000.68.542.90.41.00 c 0.6: 10.3% Sales Tax E E 421.000.74.534.80.41.00 0.6: r Q Page: 1 Packet Pg. 27 vchlist 10/05/2017 8:09:52AM Voucher List City of Edmonds Bank code : usbank Voucher Date Vendor Invoice 227666 10/5/2017 069751 ARAMARK UNIFORM SERVICES (Continued) 1990373933 227667 10/5/2017 073794 ARSENAULT-BUCKHAM, MARY WOTS PRESENTATIONS 227668 10/5/2017 076048 AUSTEN, ELIZABETH WOTS PRESENT CRITIQU 227669 10/5/2017 070305 AUTOMATIC FUNDS TRANSFER 96413 PO # Description/Account 10.3% Sales Tax 422.000.72.531.90.41.00 10.3% Sales Tax 423.000.75.535.80.41.00 10.3% Sales Tax 511.000.77.548.68.41.00 FLEET DIVISION UNIFORMS & MAT FLEET DIVISION UNIFORMS 511.000.77.548.68.24.00 FLEET DIVISION MATS 511.000.77.548.68.41.00 10.3% Sales Tax 511.000.77.548.68.24.00 10.3% Sales Tax 511.000.77.548.68.41.00 Total WOTS PRESENTATIONS WOTS PRESENTATIONS 117.100.64.573.20.41.00 Total ; WOTS PRESENTATION AND POETF WOTS OPS ASSISTANCE 117.100.64.573.20.41.00 Total OUT SOURCING OF UTILITY BILLS UB Outsourcing area #500 Printing 422.000.72.531.90.49.00 UB Outsourcing area #500 Printing 421.000.74.534.80.49.00 UB Outsourcing area #500 Printing 423.000.75.535.80.49.00 UB Outsourcing area #500 Postage 4.4.a Page: 2 m L 3 c Amoun 0 0 0- 0 0.6< m is 0.6: u m 0.6. m 5.6£ W 18.4( 0.5£ c� a 1.8� Ef 119.31 •M 0 ti 327.0( L6 327.0( c 0 r U 37.1 £ E 37.1 £ }; c W 38.2� E t r Q Page: 2 Packet Pg. 28 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher List City of Edmonds Voucher Date Vendor Invoice 227669 10/5/2017 070305 AUTOMATIC FUNDS TRANSFER (Continued) 96529 227670 10/5/2017 075600 BARKSDALE, JESSICA WOTS PRESENT CRITIQU 227671 10/5/2017 076087 BARTLEY, NANCY WOTS PRESENTATION PO # Description/Account 421.000.74.534.80.42.00 UB Outsourcing area #500 Postage 423.000.75.535.80.42.00 10.1 % Sales Tax 422.000.72.531.90.49.00 10.1 % Sales Tax 421.000.74.534.80.49.00 10.1 % Sales Tax 423.000.75.535.80.49.00 OUT SOURCING OF UTILITY BILLS UB Outsourcing area #600 Printing 422.000.72.531.90.49.00 UB Outsourcing area #600 Printing 421.000.74.534.80.49.00 UB Outsourcing area #600 Printing 423.000.75.535.80.49.00 UB Outsourcing area #600 Postage 421.000.74.534.80.42.00 UB Outsourcing area #600 Postage 423.000.75.535.80.42.00 10.1 % Sales Tax 422.000.72.531.90.49.00 10.1 % Sales Tax 421.000.74.534.80.49.00 10.1 % Sales Tax 423.000.75.535.80.49.00 Total WOTS PRESENTATION AND MAW WOTS PRESENTATION AND MAW 117.100.64.573.20.41.00 Total WOTS PRESENTATION WOTS PRESENTATION 4.4.a Page: 3 m L 3 c Amoun 0 0 a m 133.0' m 133.0( =5 vi Y 3.7( t 3.7( w m 3.8( W 0 34.3' — 0 34.3' a 35.3, R U 127.7 p R 127.71 p L a 3.4 , Q 3.40 L6 0 3.5( o 760.0, N v E 5 937.0( 937.0( a� E t U r Q Page: 3 Packet Pg. 29 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227671 10/5/2017 076087 BARTLEY, NANCY 227672 10/5/2017 071348 BERGERABAM 227673 10/5/2017 069226 BHC CONSULTANTS LLC 227674 10/5/2017 028050 BILL PIERRE FORD INC 227675 10/5/2017 075465 BLACK, SHANNON Voucher List City of Edmonds Invoice (Continued) 3200032 HIM 9149 667714 WOTS PHOTOGRAPHY 227676 10/5/2017 075312 BRIDGES, SHIRIN WOTS PRESENTATIONS 227677 10/5/2017 072177 BROOKS PRODUCTS & SERVICE 1362 PO # Description/Account 117.100.64.573.20.41.00 Tota E4MB.SERVICES THRU 9/15/17 E4MB.SERVICES THRU 9/15/17- 016.000.66.518.30.41.00 Tota ESFE.SERVICES THRU 08/25/17 ESFE.SERVICES THRU 08/25/17 422.200.72.594.31.41.00 ESJB.SERVICES THRU 8/25/17 ESJB.SERVICES THRU 8/25/17- 421.000.74.594.34.41.10 Tota UNIT411 -SUPPLIES Unit 411 - Supplies 511.000.77.548.68.31.10 10.1 % Sales Tax 511.000.77.548.68.31.10 Tota WOTS PHOTOGRAPHY WOTS PHOTOGRAPHY 117.100.64.573.20.41.00 Tota WOTS PRESENTATIONS WOTS PRESENTATIONS 117.100.64.573.20.41.00 4.4.a Page: 4 m L 3 c Amoun 0 0 0- 0 147.0( 147.0( L Y 1,938.5( 1,938.5$ w m c W 237.5( 0 0 L 21,403.7, 21,641.2, a E R U 39.9E o R 4.0z o L 44.0( a 2 ti 350.0( c 1 : 350.0( o r N U E 544.0( 'Fa Total: 544.0( INV#1362 - JOHNSON - EDMONDS I y 3/4 SLEEVED SHIRTS (XL) E t 001.000.41.521.11.24.00 65.9z u r Q Page: 4 Packet Pg. 30 vchlist 10/05/2017 8:09:52AM Voucher List City of Edmonds Bank code : usbank Voucher Date Vendor Invoice 227677 10/5/2017 072177 BROOKS PRODUCTS & SERVICE (Continued) 227678 10/5/2017 061966 CAMP FIRE BOYS & GIRLS 227679 10/5/2017 067432 CAREY, JANET 227680 10/5/2017 072473 CHANCE, MEGAN 227681 10/5/2017 076246 CITY OF SEATTLE 227682 10/5/2017 071417 CORE & MAIN LP 5931 BABYSITTING WOTS PRESENTATIONS WOTS FACIL KEYNOTE RGB_20 H755948 227683 10/5/2017 065683 CORRY'S FINE DRY CLEANING SEPT 2017 PO # Description/Account EMBROIDER NAME ON SHIRTS 001.000.41.521.11.24.00 EMBROIDER EMBLEN ON SHIRT 4.4.a Page: 5 S 1,177.0( o 1 : 1,177.0( Q a R ro ti 5,761.0( o I : 5,761.0( o r N U E 509.4( 39.Z c Total: 548.7' E t DRY CLEANING AUG/SEPT - EDMO U r Q Page: 5 Packet Pg. 31 vchlist 10/05/2017 8:09:52AM Voucher List City of Edmonds Bank code : usbank Voucher Date Vendor Invoice 227683 10/5/2017 065683 CORRY'S FINE DRY CLEANING (Continued) 227684 10/5/2017 075925 CROSSROADS STRATEGIES LLC 1012358 1012420 227685 10/5/2017 066131 DEPARTMENT OF HEALTH N02769 227686 10/5/2017 064531 DINES, J EAN N I E 17-3792 227687 10/5/2017 074302 EDMONDS HARDWARE & PAINT LLC 002409 002415 002417 PO # Description/Account CLEANING/LAUNDRY AUG/SEPT 2C 001.000.41.521.22.24.00 Total FEDERAL LOBBYISTJANUARY - AL Federal lobbyist unbilled fees from 001.000.61.511.70.41.00 FEDERAL LOBBYIST SEPTEMBER Federal lobbyist September 2017 001.000.61.511.70.41.00 Total E4JC.2017 ENG.PLANNING & SANI- E4JC.Submittal 17-0708 NW- 421.000.74.594.34.41.10 Total 9/26/17 COUNCIL MEETING & COMI 9/26/17 CITY COUNCIL MINUTES & 001.000.25.514.30.41.00 Total PM: FASTENERS PM: FASTENERS 001.000.64.576.80.31.00 10.3% Sales Tax 001.000.64.576.80.31.00 PM: FASTENERS PM: FASTENERS 001.000.64.576.80.31.00 10.3% Sales Tax 001.000.64.576.80.31.00 PM: SIMPLE GREEN, CLR CLEANEF PM: SIMPLE GREEN, CLR CLEANEF 001.000.64.576.80.31.00 4.4.a Page: 6 m L 3 c Amoun 0 0 a 0 0 708.1 < m Fill -A HIE-: 0 Y m t 8,000.0( w m c a� 6,000.0( 14,000.0( 0 0 c� 5,484.0( a 5,484.0( U 4- 0 187.0( > 187.0( 0 Q. a Q 7.7( 0 0.7� o r U) U 14.4E E 1.4� c a� E 28.9E u r Q Page: 6 Packet Pg. 32 vchlist 10/05/2017 8:09:52AM Voucher List City of Edmonds Bank code : usbank Voucher Date Vendor Invoice 227687 10/5/2017 074302 EDMONDS HARDWARE & PAINT LLC (Continued) 227688 10/5/2017 062883 EDMONDS LANDSCAPING INC 227689 10/5/2017 008410 EDMONDS PRINTING CO 227690 10/5/2017 008705 EDMONDS WATER DIVISION 002422 002423 149583 R25601 3-01808 3-03575 3-07490 PO # Description/Account 10.3% Sales Tax 001.000.64.576.80.31.00 PM: WRENCH, PLIER, LOCK EASE, PM: WRENCH, PLIER, LOCK EASE, 001.000.64.576.80.31.00 10.3% Sales Tax 001.000.64.576.80.31.00 PM: ELBOW PM: ELBOW 001.000.64.576.80.31.00 10.3% Sales Tax 001.000.64.576.80.31.00 Total CITY OF EDMONDS REPLACEMEN' Replacement Planting & Site Cleanini, 423.200.75.594.35.65.00 10.3% Sales Tax 423.200.75.594.35.65.00 Total WATER QUALITY - BACKFLOW CHI Water Quality - Backflow Check Valve 421.000.74.534.80.31.00 10.3% Sales Tax 421.000.74.534.80.31.00 Total LIFT STATION #11 6807 157TH PL S' LIFT STATION #11 6807 157TH PL S' 423.000.75.535.80.47.10 CLUBHOUSE 6801 N MEADOWDAL CLUBHOUSE 6801 N MEADOWDAL 001.000.66.518.30.47.00 HAINES WHARF PARK DRINKING F 4.4.a Page: 7 m L 3 c Amoun 0 0 0- 0 0 2.9£ m 0 44.4' m t 4.51 w m c a� 7.9£ 0 0.8, — 114.1! c� a E 3,106.3: 2 4- 319.9E o 3,426.2 , 0 Q a Q 73.0( ti L6 7.5, c 80.5, CD U) U E 44.2! Page: 7 Packet Pg. 33 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227690 10/5/2017 008705 EDMONDS WATER DIVISION 227691 227692 227693 Voucher List City of Edmonds Invoice (Continued) 3-07525 3-07709 3-09350 3-09800 3-29875 3-38565 10/5/2017 069878 EDMONDS-WESTGATE VET HOSPITAL 246156 10/5/2017 009350 EVERETT DAILY HERALD 10/5/2017 076062 FALETOI, CHENOA TALIA EDH776521 9/21-9/28 GYM ATTEND PO # Description/Account HAINES WHARF PARK DRINKING F 001.000.64.576.80.47.00 LIFT STATION #12 16100 75TH AVE LIFT STATION #12 16100 75TH AVE 423.000.75.535.80.47.10 LIFT STATION #15 7701 168TH ST S LIFT STATION #15 7701 168TH ST S 423.000.75.535.80.47.10 LIFT STATION #4 8313 TALBOT RD i LIFT STATION #4 8313 TALBOT RD i 423.000.75.535.80.47.10 LIFT STATION #10 17612 TALBOT R LIFT STATION #10 17612 TALBOT R 423.000.75.535.80.47.10 LIFT STATION #9 8001 SIERRA DR / LIFT STATION #9 8001 SIERRA DR / 423.000.75.535.80.47.10 SPRINKLER FOR RHODIES 18410 c SPRINKLER FOR RHODIES 18410 c 001.000.64.576.80.47.00 Total INV#246156 CLIENT #5118 - EDMOl' NECROPSY CASE #2017-00020344 001.000.41.521.70.41.00 Total LEGAL DESCRIPTION: PLN201700: Legal Description: PLN20170037 AIL 001.000.62.558.60.41.40 Total 9/21-9/28/17 VOLLEYBALL GYM AT7 9/21-9/28/17 VOLLEYBALL GYM AT7 001.000.64.571.25.41.00 4.4.a Page: 8 m L 3 c Amoun 0 0 0- 0 90.0� L 90.0( 0 44.2E ca a E 44.2E 0 R 44.2E o 780.2; a a ti 180.0( L6 180.0( c 0 r N U 56.7( .9 56.7E U Page: 8 Packet Pg. 34 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227693 10/5/2017 076062 076062 FALETOI, CHENOA TALIA 227694 10/5/2017 075673 FARMER, MARIA 227695 10/5/2017 071026 FASTSIGNS OF LYNNWOOD 227696 10/5/2017 009815 FERGUSON ENTERPRISES INC 227697 10/5/2017 069090 FITZGERALD, WAVERLY 227698 10/5/2017 076089 FLANAGAN, KERRIE 227699 10/5/2017 011900 FRONTIER Voucher List City of Edmonds Invoice (Continued) 21580 PO # Description/Account 4.4.a Page: 9 m L 3 c Amoun c 0- Total : 69.0( SPANISH INTERPRETER COURT CI m SPANISH INTERPRETER COURT CI 001.000.23.512.50.41.01 157.9£ vi Total: 157.9i 443-23545 WOTS SIGNS WOTS SIGNS 117.100.64.573.20.31.00 10.4% Sales Tax 117.100.64.573.20.31.00 Tota 0568653 WATER METER INVENTORY #202 Water Meter Inventory #2024 421.000.74.534.80.34.30 #2031 M-MTRTRPL-0.625-010 421.000.74.534.80.34.30 10.3% Sales Tax 421.000.74.534.80.34.30 Tota WOTS PRESENTATION JU WOTS PRESENTATION AND NON WOTS PRESENTATION AND NON 117.100.64.573.20.41.00 Tota WOTS PRESENTATIONS J WOTS PRESENTATIONS AND FIC WOTS PRESENTATIONS AND FIC 117.100.64.573.20.41.00 Tota 253-003-6887 LIFT STATION #6 VG SPECIAL AC LIFT STATION #6 VG SPECIAL AC 423.000.75.535.80.42.00 425-771-0158 FIRE STATION #16 ALARM AND F 12.61 134.41 0 4 a 3,144.0( 1,660.8( U 4- 0 494.8� > I: 5,299.6$ 0 Q. FI Q' Q F 1 275.0( 1 : 275.0( o 0 TI r TI 732.5( E 'M CE }; CE a�i 42.1( E A} U r Q Page: 9 Packet Pg. 35 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227699 10/5/2017 011900 FRONTIER 227700 10/5/2017 075538 GAMEZ, OMAR 227701 10/5/2017 011210 GC SYSTEMS INC Voucher List City of Edmonds Invoice (Continued) 425-776-6829 09292017 4683 227702 10/5/2017 063137 GOODYEAR AUTO SERVICE CENTER 140261 227703 10/5/2017 012199 GRAINGER 9558607181 PO # Description/Account FIRE STATION #16 ALARM AND F 001.000.66.518.30.42.00 CITY HALL ALARM LINES 121 5TH CITY HALL FIRE AND INTRUSION 001.000.66.518.30.42.00 LIFT STATION #2 VG SPECIAL AC LIFT STATION #2 VG SPECIAL AC 423.000.75.535.80.42.00 Tota ICAOS TRAINING 09292017 ICAOS TRAINING 09292017 001.000.23.512.50.43.00 Tota WATER - SPV INTERTIE REPAIRS Water - SPV Intertie Repairs 421.000.74.534.80.48.00 10.3% Sales Tax 421.000.74.534.80.48.00 Tota FLEET TIRE SUPPLY (10) Fleet Tire Supply (10) 511.000.77.548.68.34.30 State Tire Fee 511.000.77.548.68.34.30 10.4% Sales Tax 511.000.77.548.68.34.30 Tota PM: TOILET BRUSH PM: TOILET BRUSH 001.000.64.576.80.31.00 10.3% Sales Tax 4.4.a Page: 10 m L A} 3 c Amoun c a am � 132.6E m P AI 0 Y 132.6E CE � Cf = 26.4( m 1 : 333.8E 55.6z o 55.61 a E M 6,666.0( 0 686.6( > 7,352.6( Lo- c. a Q ti 2,035.5E 0 10.0( U) 211.7( U 2,257.2E E c 56.8z E t U 2 r Q Page: 10 Packet Pg. 36 vchlist 10/05/2017 8:09:52AM Voucher List City of Edmonds Bank code : Voucher usbank Date Vendor Invoice PO # Description/Account 227703 10/5/2017 012199 GRAINGER (Continued) 001.000.64.576.80.31.00 Tota 227704 10/5/2017 076057 GRAVILLE, IRIS-MARIE N WOTS PRESENTATIONS WOTS PRESENTATIONS WOTS PRESENTATIONS 117.100.64.573.20.41.00 Tota 227705 10/5/2017 068015 GRICE INDUSTRIES INC G2248 WATER - PIPE REPLACEMENT T Water - Pipe Replacement Tool 421.000.74.534.80.35.00 Tota 227706 10/5/2017 068499 HARDWICK, ALAN HARDWICK 9/17 EXP CL HARDWICK 9/17 EXPENSE CLAIM PER DIEM 9/25-27/17 SHELTON 001.000.41.521.40.43.00 Tota 227707 10/5/2017 012900 HARRIS FORD INC 174025 UNIT 527 - LINKS Unit 527 - Links 511.000.77.548.68.31.10 10.4% Sales Tax 511.000.77.548.68.31.10 Tota 227708 10/5/2017 076058 HARRIS, WINDY LYNN WOTS PRESENTATION WOTS PRESENTATION WOTS PRESENTATION 117.100.64.573.20.41.00 Tota 227709 10/5/2017 073796 HARTWELL, ELENAMELISSA WOTS PRESENTATION WOTS PRESENTATION WOTS PRESENTATION 117.100.64.573.20.41.00 Tota 227710 10/5/2017 076047 HEDREEN, ANN WOTS PRESENTATION WOTS PRESENTATION 4.4.a Page: 11 m L 3 c Amoun c 0- am 5.8: 62.65 L Y 192.0( 1 : 192.0( w c a� 825.0( 825.0( 0 a 102.0( E 102.0( 0 R 26.1( p L Q. 2.7, Q ti u� 0 0 397.0( r 1 : 397.0( E 187.0( +: 1 : 187.0( E t U 2 r Q Page: 11 Packet Pg. 37 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227710 10/5/2017 076047 HEDREEN, ANN 227711 10/5/2017 075966 HULBERT, CARRIE 227712 10/5/2017 073548 INDOFF INCORPORATED 2995136 POST IS NOTES, TISSUE Post its, Tissue 001.000.31.514.23.31.00 10.3% Sales Tax 001.000.31.514.23.31.00 3005851 UB - PINK TURNOFF PAPER UB - Pink Turnoff Paper 421.000.74.534.80.31.00 UB - Pink Turnoff Paper 423.000.75.535.80.31.00 UB - Pink Turnoff Paper 422.000.72.531.90.31.00 10.3% Sales Tax 421.000.74.534.80.31.00 10.3% Sales Tax 423.000.75.535.80.31.00 10.3% Sales Tax 422.000.72.531.90.31.00 3012059 POST ITS RETURNED FOR CRED Post its returned for credit 001.000.31.514.23.31.00 10.3% Sales Tax 001.000.31.514.23.31.00 3012119 CITY CLERKS OFFICE SUPPLIES STAPLES, THERMAL PAPER, REC 001.000.25.514.30.31.00 Voucher List City of Edmonds Invoice PO # Description/Account (Continued) WOTS PRESENTATION 117.100.64.573.20.41.00 4.4.a Page: 12 m L 3 c Amoun c a m 0 147.0( m Total : 147.0( -0 N BID-007 BID/ED! ADMINISTRATION SERVICE Y BID/Ed! Administration September 2C 140.000.61.558.70.41.00 1,200.0( Total: 1,200.0( m c W 53.3, 0 L 5.4� a E 21.8 1 .2 U 4- 21.81 R 21.8( o Q. a 2.2! Q ti 2.2E 0 2.2( IT N U -39.6E -4.0� a� E E 274.21 r Q Page: 12 Packet Pg. 38 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227712 10/5/2017 073548 INDOFF INCORPORATED Voucher List City of Edmonds Invoice (Continued) 3012127 3012941 3012942 227713 10/5/2017 075661 JANET MAPLES DESIGN /IZZY GIRL BID-09302017 227714 10/5/2017 074596 JUSINO, ELIZABETH 227715 10/5/2017 016850 KUKER RANKEN INC 227716 10/5/2017 072914 LAUGHTLAND, AMANDA WOTS PRESENTATION INV-032858 WOTS POETRY JUDGE PO # Description/Account 10.3% Sales Tax 001.000.25.514.30.31.00 DSD - STOOL EXTENSION DSD - Stool extension 001.000.62.524.10.31.00 NOTE PADS AND POST ITS Ruled notepad and Post its 001.000.31.514.23.31.00 10.3% Sales Tax 001.000.31.514.23.31.00 COPY PAPER FOR DSD Copy paper for DSD 001.000.62.524.10.31.00 Tota BID/ED! SOCIAL MEDIA SERVICE BID/Ed! social media services for 140.000.61.558.70.41.00 Tota WOTS PRESENTATION WOTS PRESENTATION 117.100.64.573.20.41.00 Tota AERVOE STD WHITE STRIPING P WHITE STRIPING PAINT 001.000.67.518.21.49.00 10.3% Sales Tax 001.000.67.518.21.49.00 Tota WOTS POETRY JUDGE WOTS POETRY JUDGE 117.100.64.573.20.41.00 4.4.a Page: 13 m L 3 c Amoun 0 0 a am 0 28.2E m 0 Y 49.6z t 52.5' m c a� 5.4' 0 S 112.61 I : 610.1, ca I E U 500.0( 1 : 500.0( o R 0 L Q a 465.0( Q 1 : 465.0( ti AI c o_ 32.1 £ U 3.3' E 1 : 35.4t c a� E 128.0( r Q Page: 13 Packet Pg. 39 vchlist 10/05/2017 8:09:52AM Voucher List City of Edmonds 4.4.a Page: 14 m L Bank code : Voucher usbank Date Vendor Invoice PO # Description/Account 3 c Amoun 0 0 227716 10/5/2017 072914 072914 LAUGHTLAND, AMANDA (Continued) Total: 0- 128.0( -0a 227717 10/5/2017 067725 LES SCHWAB TIRE CENTER 80500207986 UNIT 125 - ALIGNMENT m Unit 125 - Alignment 511.000.77.548.68.48.00 79.9E vi 10.3% Sales Tax 511.000.77.548.68.48.00 &Z Total: 88.1E 227718 10/5/2017 068957 LYNN PEAVEY COMPANY 336223 INV#336223 CUST #980012 - EDMO w c TRACE EVIDENCE WRAP 001.000.41.521.80.31.00 95.0( CLEAR EVIDENCE COLLECTION JP 0 001.000.41.521.80.31.00 35.0( o Freight L 001.000.41.521.80.31.00 22.0( a 10.3% Sales Tax E 001.000.41.521.80.31.00 15.6( .2 Total: 167.6E ,- 0 227719 10/5/2017 072992 LYNNWOOD ICE CENTER ICE SKATE 5883 5884 5886 LEARN TO ICE SKA R 5883 LEARN TO ICE SKATE INSTRI o L 001.000.64.571.22.41.00 126.0( 0- 5884 LEARN TO ICE SKATE INSTRI Q 001.000.64.571.22.41.00 189.0( ti 5886 LEARN TO ICE SKATE INSTRI 001.000.64.571.22.41.00 LO 126.0( o Total: 441.0( 227720 10/5/2017 075716 MALLORY PAINT STORE INC E0084433 PW - PAINT SUPPLIES Y U PW - Paint Supplies E 001.000.66.518.30.31.00 63.9 1 .2 10.0% Sales Tax 001.000.66.518.30.31.00 6.4( c Total: 70.3, E t U r Q Page: 14 Packet Pg. 40 vchlist 10/05/2017 8:09:52AM Voucher List City of Edmonds Bank code : usbank Voucher Date Vendor Invoice 227721 10/5/2017 068670 MARSHBANK CONSTRUCTION INC E1 CA.ESDA.Pmt 5 227722 10/5/2017 076049 MC KEAN, JAMES 227723 10/5/2017 075913 MCMILLEN JACOBS ASSOCIATES 227724 10/5/2017 075746 MCMURRAY, LAURA 227725 10/5/2017 076243 MENGSTU, ASRADE 227726 10/5/2017 072223 MILLER, DOUG 227727 10/5/2017 072746 MURRAYSMITH WOTS PRESENTATIONS •.1.111: 6119 FELDENKRAIS 120 9/27 GYM MONITOR 15-1715-22 PO # Description/Account Ell CA.E5DA.PMT THRU 8/31/17 Ell CA.PMT THRU 8/31/17 112.000.68.595.33.65.00 ESDA.PMTTHRU 8/31/17 112.000.68.595.33.65.00 WOTS PRESENTATIONS WOTS PRESENTATIONS 117.100.64.573.20.41.00 Tota Tota E4MB.SERVICES THRU 08/25/17 E4MB.SERVICES THRU 08/25/17 016.000.66.518.30.41.00 Tota 6119 FELDENKRAIS INSTRUCTIO 6119 FELDENKRAIS INSTRUCTIO 001.000.64.571.27.41.00 Tota MUSEUM SKYLIGHT STRUCTURA Museum Skylight Structural Calcula 016.000.66.594.19.65.00 Tota 9/27/17 BASKETBALL GYM MONIT 9/27/17 BASKETBALL GYM MONIT 001.000.64.571.25.41.00 Tota ESKA.SERVICES THRU 8//31/17 ESKA.SERVICES THRU 8//30/17- 421.000.74.594.34.41.10 Tota 4.4.a Page: 15 m L 3 c Amoun N 0 a am 418,903.5( m =a 1,852.0( Y 420,755.5E t r 4- a) 862.0( y 862.0( 0 0 940.0( c% L�iZdwil E N .2 N 78.0( 0 1 : 78.0( > 0 L Q. ti( Q 1,500.0( I : 1,500.0( u� C G 0 C r N 40.2( � 1 : 40.2! E 0 c 26,016.2: a� I : 26,016Z E U is r Q Page: 15 Packet Pg. 41 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227728 10/5/2017 018950 NAPAAUTO PARTS Voucher List City of Edmonds Invoice 3276-771149 227729 10/5/2017 067834 NATIONAL CONSTRUCTION RENTALS 4837324 227730 10/5/2017 075539 NATURE INSIGHT CONSULTING 227731 10/5/2017 024302 NELSON PETROLEUM 227732 10/5/2017 068570 O'CONNELL III, NICHOLAS 227733 10/5/2017 065720 OFFICE DEPOT 15 0634335-IN WOTS PRESENTATION 963062620001 PO # Description/Account UNIT 34 - DRIVEBELT SUPPLIES Unit 34 - Drivebelt Supplies 511.000.77.548.68.31.10 10.3% Sales Tax 511.000.77.548.68.31.10 Tota YOST POOL TEMPORARY PANEL YOST POOL TEMPORARY PANEL 001.000.64.576.80.45.00 Tota WILLOW CREEK DAYLIGHTING P Tasks 1 - 4: Parks Project Mgmt an 125.000.64.575.50.41.00 Task 5: Engineering Dept Tasks 422.200.72.594.31.41.00 Tota UNIT 66 - SUPPLIES Unit 66 - Supplies 511.000.77.548.68.31.10 10.3% Sales Tax 511.000.77.548.68.31.10 Tota WOTS PRESENTATION WOTS PRESENTATION 117.100.64.573.20.41.00 Tota INV#963062620001 ACCT#905204 KLEENEX TISSUES 001.000.41.521.10.31.00 PUSH PINS 001.000.41.521.10.31.00 4.4.a Page: 16 m L 3 c Amoun c 0- 0 50.5( La) 5.2' Y 1 : 55.7 i t S r S m 28.4( y 1 : 28.4E R, d o L 437.5( c% a 500.0( E 1 : 937.5( 0 R 191.4( o a a 19.7' Q 1 : 211.1' ti L6 0 0 r 147.0( N 1 : 147.0( U E 3-, 40.6' a� E 11.2E 2 r Q Page: 16 Packet Pg. 42 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227733 10/5/2017 065720 OFFICE DEPOT 227734 10/5/2017 002203 OWEN EQUIPMENT COMPANY Voucher List City of Edmonds Invoice (Continued) 963157486001 964383044001 PO # Description/Account 1/4" STAPLES 001.000.41.521.10.31.00 PATROL MEMO BOOKS 001.000.41.521.10.31.00 WITE OUT CORRECTION TAPE 001.000.41.521.10.31.00 10.3% Sales Tax 001.000.41.521.10.31.00 P&R PAPER, BANDAIDS P&R PAPER, BANDAIDS 001.000.64.571.21.31.00 10.3% Sales Tax 001.000.64.571.21.31.00 P&R PAPER, POST ITS P&R PAPER, POST ITS 001.000.64.571.21.31.00 10.3% Sales Tax 001.000.64.571.21.31.00 Tota 00085693 UNIT 66 - PARTS Unit 66 - Parts 511.000.77.548.68.31.10 10.3% Sales Tax 511.000.77.548.68.31.10 227735 10/5/2017 075150 PALMER COKING COAL COMPANY LLP 1151 227736 10/5/2017 027450 PAWS AUG 2017 Tota CIVIC TRACK CINDERS CIVIC TRACK CINDERS 125.000.64.576.80.31.00 10.3% Sales Tax 125.000.64.576.80.31.00 Total INVOICE 9/6/17 FOR AUG 2017-CRE 4.4.a Page: 17 m L 3 c Amoun 0 0 a am 10.0E L 22.1' Y U m 15.6. r 10.2 a c aD 51.7( 5.3: a 38.61 •E R z 3.9£ o I : 209.5i 0 Q. a 130.4( Q ti 13.4z L6 1 : 143.9( c r N ke U 2,175.5< •E 6 224.0£ c 2,399.6' E t U is r Q Page: 17 Packet Pg. 43 vchlist 10/05/2017 8:09:52AM Voucher List City of Edmonds Bank code : usbank Voucher Date Vendor Invoice 227736 10/5/2017 027450 PAWS (Continued) AUG 2017 227737 10/5/2017 068571 PERSUN, TERRY WOTS PRESENTATION 227738 10/5/2017 008350 PETTY CASH 10/2 PARKS PETTY CSH 227739 10/5/2017 028860 PLATT ELECTRIC SUPPLY INC N958795 227740 10/5/2017 046900 PUGET SOUND ENERGY 200009595790 PO # Description/Account 4.4.a Page: 18 m L 3 c Amoun c a d RECLAIM FEES FOR 3 CATS $20.00 001.000.41.521.70.41.00 W -60.0( L S BOARDING FEES FOR 4 DAYS $15. `a 001.000.41.521.70.41.00 -60.0( Y AUG 2017 ANIMAL SHELTERING -EC SHELTERING 8 ANIMALS $175 001.000.41.521.70.41.00 1,400.0( = Total: 1,280.0( a WOTS PRESENTATION WOTS PRESENTATION 117.100.64.573.20.41.00 Tota 10/2 PARKS PETTY CASH LEACH: OFFICE MAX: BIRD FEST 001.000.61.558.70.31.00 PARKER: HOBBY LOBBY: PRESC 001.000.64.571.29.31.00 CHAPIN: COSTCO: WOTS SUPPLI 117.100.64.573.20.31.00 STEELE-SMITH: DISPLAY & COST 001.000.64.571.28.31.00 Tota FAC MAINT - SHOP SUPPLIES Fac Maint - Shop Supplies 001.000.66.518.30.31.00 10.3% Sales Tax 001.000.66.518.30.31.00 Tota FIRE STATION #16 8429 196TH S FIRE STATION #16 8429 196TH S 001.000.66.518.30.47.00 c a� 147.0( 1 : 147.0( o a c� A E T 5.7: R H( U 23.1 < E R 66.7. o U a 18.7' Q 1 : 114.21 ti L6 0 0 69.0( Y U 7.1, E 1 : 76.1' ; c T; W E 134.2( r- r Q Page: 18 Packet Pg. 44 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227740 10/5/2017 046900 PUGET SOUND ENERGY 227741 10/5/2017 070809 PUGET SOUND EXECUTIVE 227742 10/5/2017 071335 RHAMEY, RAY 227743 10/5/2017 064769 ROMAINE ELECTRIC 227744 10/5/2017 069593 SAFELITE FULFILLMENT INC 227745 10/5/2017 074796 SEWER FRIENDLY Voucher List City of Edmonds Invoice PO # Description/Account (Continued) 200019375639 MEADOWDALE CLUBHOUSE 680 4.4.a Page: 19 m L 1 1 3 c Amoun c a am 1 � 1 m 48.6( =5 1 : 182.8( vi Y V 2: t 2, r 1,168.7E m Z c 2 aD c 948.7E 1 : 2,117.5( 0 L c� a 397.0( I : 397.0( 'R 0 R 96.6z o L Q. a 9.9E Q 106.5t uO 0 o_ 29.9E N U 3.0E E Total: 33.0: M ENG.20170195 REFUND - NO WORK PERFORMED Payment Receipt No. 06971- 0 001.000.257.620 435.0( t U r Q Page: 19 Packet Pg. 45 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227745 10/5/2017 074796 074796 SEWER FRIENDLY 227746 10/5/2017 063306 SHERWIN-WILLIAMS 227747 10/5/2017 068132 SHORELINE CONSTRUCTION CO 227748 10/5/2017 076242 SMOOT, JEFFREY 227749 10/5/2017 037375 SNO CO PUD NO 1 Voucher List City of Edmonds Invoice PO # Description/Account (Continued) Total 8657-1 PM: GARBAGE CAN PAINT PM: GARBAGE CAN PAINT 001.000.64.576.80.31.00 10.3% Sales Tax 001.000.64.576.80.31.00 Total E4GB.RETAINAGE REL E4GB.RELEASE OF RETAINGE FUN E4GB/c456.RELEASE OF RETAINGE 423.200.223.400 Total WOTS PRESENTATION WOTS PRESENTATION WOTS PRESENTATION 117.100.64.573.20.41.00 Total 2001-2487-3 TRAFFIC LIGHT 9933 100TH AVE W TRAFFIC LIGHT 9933 100TH AVE W 111.000.68.542.64.47.00 2002-0291-9 LIFT STATION #8 113 RAILROAD AV LIFT STATION #8 113 RAILROAD AV 423.000.75.535.80.47.10 2002-7495-9 TRAFFIC LIGHT 23602 76TH AVE W TRAFFIC LIGHT 23602 76TH AVE W 111.000.68.542.64.47.00 2004-2241-8 FRANCES ANDERSON CENTER 70( FRANCES ANDERSON CENTER 70( 001.000.66.518.30.47.00 2004-9314-6 MAPLEWOOD PARK IRRIGATION M MAPLEWOOD PARK IRRIGATION M 001.000.64.576.80.47.00 2004-9315-3 TRAFFIC LIGHT 22000 76TH AVE W TRAFFIC LIGHT 22000 76TH AVE W 4.4.a Page: 20 m L 3 c Amoun N 0 a 435.0( -0a m L 244.9' vi Y 25.Z 270.1i w m c a� 5,187.3: 5,187.3: 0 0 a 147.0( E 147.0( 0 R 36.41 o L a a a ti 0 17.1 1 o r U) U 1,069.5( E 17.1 a� E t r Q Page: 20 Packet Pg. 46 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227749 10/5/2017 037375 SNO CO PUD NO 1 Voucher List City of Edmonds Invoice PO # Description/Account (Continued) 111.000.68.542.64.47.00 2006-6395-3 ANWAY PARK 131 SUNSET AVE / M ANWAY PARK 131 SUNSET AVE / M 001.000.64.576.80.47.00 2009-1385-3 DECORATIVE LIGHTING 115 2ND X DECORATIVE LIGHTING 115 2ND X 111.000.68.542.63.47.00 2009-4334-8 TRAFFIC LIGHT 23202 EDMONDS V TRAFFIC LIGHT 23202 EDMONDS V 111.000.68.542.64.47.00 2010-5432-7 BRACKETT'S LANDING NORTH 50 f BRACKETT'S LANDING NORTH 50 f 001.000.64.576.80.47.00 2011-0356-1 TRAFFIC LIGHT 23800 FIRDALE AVI TRAFFIC LIGHT 23800 FIRDALE AVI 111.000.68.542.64.47.00 2011-9222-6 TRAFFIC LIGHT 20408 76TH AVE W TRAFFIC LIGHT 20408 76TH AVE W 111.000.68.542.64.47.00 2015-3292-6 LIFT STATION #7 121 W DAYTON S- LIFT STATION #7 121 W DAYTON S- 423.000.75.535.80.47.10 2015-5730-3 CEMETERY BUILDING CEMETERY BUILDING 130.000.64.536.50.47.00 2015-6343-4 TRAFFIC LIGHT 660 EDMONDS WA TRAFFIC LIGHT 660 EDMONDS WA 111.000.68.542.64.47.00 2015-8215-2 TRAFFIC LIGHT 19600 80TH AVE W TRAFFIC LIGHT 19600 80TH AVE W 111.000.68.542.63.47.00 2016-1027-6 OVERHEAD STREET LIGHTING AT i OVERHEAD STREET LIGHTING AT i 130.000.64.536.50.47.00 2017-0375-8 PEDEST CAUTION LIGHT 23190 10( 4.4.a Page: 21 m L 3 c Amoun N 0 a am 29.5 1 L_ 135.5, vi Y m t 22.4E r m c a� 35.1( 0 49.0( o c� a 32.2( .E R U 0 17.3z 0 Q. 155.1( Q ti 51.6E u6 0 0 28.8( U E M 26.2' 6 c W 9.1( t Page: 21 Packet Pg. 47 U r Q vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227749 10/5/2017 037375 SNO CO PUD NO 1 Voucher List City of Edmonds Invoice PO # Description/Account (Continued) PEDEST CAUTION LIGHT 23190 10( 111.000.68.542.64.47.00 2017-6210-1 415 5TH AVE S 415 5TH AVE S 001.000.64.576.80.47.00 2020-7719-4 FIRE STATION #20 23009 88TH AVE FIRE STATION #20 23009 88TH AVE 001.000.66.518.30.47.00 2020-8787-0 LIFT STATION #6 100 PINE ST / MEl LIFT STATION #6 100 PINE ST / MEl 423.000.75.535.80.47.10 2021-3965-5 BRACKETT'S LANDING SOUTH 100 BRACKETT'S LANDING SOUTH 100 001.000.64.576.80.47.00 2021-6153-5 CEMETERY WELL PUMP CEMETERY WELL PUMP 130.000.64.536.50.47.00 2022-8909-6 TRAFFIC LIGHT 22400 HWY 99 / ME TRAFFIC LIGHT 22400 HWY 99 / ME 111.000.68.542.64.47.00 2023-5673-9 TRAFFIC LIGHT 21530 76TH AVE W TRAFFIC LIGHT 21530 76TH AVE W 111.000.68.542.64.47.00 2024-3924-6 CITY HALL 121 5TH AVE N / METER CITY HALL 121 5TH AVE N / METER 001.000.66.518.30.47.00 2024-9953-9 LIFT STATION #1 105 CASPERS ST LIFT STATION #1 105 CASPERS ST 423.000.75.535.80.47.10 2026-2041-5 MATHAY BALLINGER PARK IRRIGA MATHAY BALLINGER PARK IRRIGA 001.000.64.576.80.47.00 2042-9221-3 CHARGE STATION #1 552 MAIN ST CHARGE STATION #1 552 MAIN ST 111.000.68.542.64.47.00 4.4.a Page: 22 m L 3 c Amoun 0 0 a am 0 28.9E m 164.8E 0 L 18.3. ca a E 227.0( 0 R 62.0E o a a 24.9. Q ti u� 2,390.00 c r N 457.0' U 18.3, a� E t 68.8, r Q Page: 22 Packet Pg. 48 vchlist 10/05/2017 8:09:52AM Voucher List City of Edmonds Bank code : usbank Voucher Date Vendor Invoice 227749 10/5/2017 037375 SNO CO PUD NO 1 (Continued) 2044-6743-5 2205-4758-2 227750 10/5/2017 067609 SNOHOMISH COUNTY CITIES 2017 Meetings 227751 10/5/2017 070167 SNOHOMISH COUNTY TREASURER September 2017 227752 10/5/2017 037303 SO SNOHOMISH CO FIRE & RESCUE EDM10-2017 227753 10/5/2017 075675 SORENSON FORENSICS LLC 227754 10/5/2017 038300 SOUND DISPOSAL CO 43164 103583 103585 PO # Description/Account HAZEL MILLER PLAZA HAZEL MILLER PLAZA 001.000.64.576.80.47.00 TRAFFIC LIGHT SR104 @ 95TH AVE TRAFFIC LIGHT SR104 @ 95TH AVE 111.000.68.542.63.47.00 Total 2017 SCC MEETINGS 2017 SCC Meetings - Feb 1, 2017 - 001.000.11.511.60.49.00 2017 SCC Meetings - Feb 1, 2017 - 001.000.62.524.10.49.00 2017 SCC Meetings - Feb 1, 2017 - 001.000.21.513.10.49.00 Total Crime Victims Court Remittance Crime Victims Court Remittance 001.000.237.140 Total OCT-2017 FIRE SERVICES CONTR/ Oct-2017 Fire Services Contract Payr 001.000.39.522.20.51.00 Total INV#43164 - EDMONDS PD TESTING CASE #2017-00001722 001.000.41.521.21.41.00 Total CIVIC CENTER 250 5TH AVE N CIVIC CENTER 250 5TH AVE N 001.000.66.518.30.47.00 FRANCES ANDERSON CENTER 70( 4.4.a Page: 23 m L 3 c Amoun 0 0 a m U L 40.0( =5 0 Y 49.1( t 5,797.3� w m c W 105.0( 0 35.0( o 140.0( 280.0( E U w- 0 560.9E > 560.9E o o. a ti 614,893.1 614,893.11 o 0 r U 500.0( E 500.0( 'M c W 558.5E t U r Q Page: 23 Packet Pg. 49 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227754 10/5/2017 038300 SOUND DISPOSAL CO 227755 10/5/2017 068439 SPECIALTY DOOR SERVICE Voucher List City of Edmonds Invoice (Continued) 103586 47225 47227 227756 10/5/2017 040917 TACOMA SCREW PRODUCTS INC 18172693 227757 10/5/2017 027269 THE PART WORKS INC INV17538 4.4.a Page: 24 m L 3 c PO # Description/Account Amoun 0 0 a m FRANCES ANDERSON CENTER 70( 001.000.66.518.30.47.00 674.4 1 a) SNO-ISLE LIBRARY 650 MAIN ST =a SNO-ISLE LIBRARY 650 MAIN ST vi 001.000.66.518.30.47.00 Y 555.2: CITY HALL 121 5TH AVE N CITY HALL 121 5TH AVE N = 001.000.66.518.30.47.00 459.8� m Total : 2,248.1 FS 20 - DOOR REPAIR FS 20 - Door Repair 001.000.66.518.30.48.00 331.9. o 10.3% Sales Tax 001.000.66.518.30.48.00 34.1 FS 17 - DOOR REPAIRS E FS 17 - Door Repairs 001.000.66.518.30.48.00 U 1,309.5, . 10.3% Sales Tax 001.000.66.518.30.48.00 134.8E > Total: 1,810.5' Q. a FLEET SHOP SUPPLIES Q Fleet Shop Supplies ti 511.000.77.548.68.31.20 14.2( 10.3% Sales Tax c 511.000.77.548.68.31.20 1.4 1 T" Total : 15.7; Y U PM: ROYAL COVER SLOAN, INSIDE E PM: ROYAL COVER SLOAN, INSIDE 001.000.64.576.80.31.00 26.7E .. 10.3% Sales Tax 001.000.64.576.80.31.00 2.7( E t r Q Page: 24 Packet Pg. 50 vchlist 10/05/2017 8:09:52AM Voucher List City of Edmonds Bank code : usbank Voucher Date Vendor Invoice PO # 227757 10/5/2017 027269 027269 THE PART WORKS INC (Continued) 227758 10/5/2017 072469 THOMAS, KIM WOTS OPS ASSIST 227759 10/5/2017 038315 THYSSENKRUPP ELEVATOR 227760 10/5/2017 070744 TIGER OAK MEDIA 227761 10/5/2017 074800 TURNSTYLE INC 227762 10/5/2017 070902 ULVESTAD, KAREN Description/Account Tota WOTS OPS ASSISTANCE WOTS OPS ASSISTANCE 117.100.64.573.20.41.00 Tota US53022 ELEVATOR MAINTENANCE MUSE ELEVATOR MAINTENANCE MUSE 001.000.66.518.30.48.00 10.3% Sales Tax 001.000.66.518.30.48.00 US53323 ELEVATOR MAINTENANCE CITY ELEVATOR MAINTENANCE CITY 001.000.66.518.30.48.00 10.3% Sales Tax 001.000.66.518.30.48.00 US54073 ELEVATOR MAINTENANCE SENT Tota 2017-176469 BUSINESS RECRUITMENT AD SE Business recruitment ad in Seattle 001.000.61.558.70.41.40 Tota BID-4343 BID/ED! DEVELOPMENT AND IMP BID/Ed! development and impleme 140.000.61.558.70.41.00 Tota 5916 DIGITAL PHOTO 5916 DIGITAL PHOTOGRAPHY IN 5916 DIGITAL PHOTOGRAPHY INS 4.4.a Page: 25 OR Q Page: 25 Packet Pg. 51 vchlist 10/05/2017 8:09:52AM Voucher List City of Edmonds 4.4.a Page: 26 m L Bank code : usbank Voucher Date Vendor Invoice PO # Description/Account 3 c Amoun 0 0 227762 10/5/2017 070902 070902 ULVESTAD, KAREN (Continued) Total: a 207.0( -0) 227763 10/5/2017 044960 UTILITIES UNDERGROUND LOC CTR 7090127 UTILITIES UNDERGROUND LOCATI m UTILITIES UNDERGROUND LOCATI 421.000.74.534.80.41.00 135.8( vi UTILITIES UNDERGROUND LOCATI Y 422.000.72.531.90.41.00 135.8( t UTILITIES UNDERGROUND LOCATI 423.000.75.535.80.41.00 139.9' 4- Total: 411.5- y 227764 10/5/2017 067865 VERIZON WIRELESS 9793225061 C/A571242650-0001 iPhone/iPad Cell Service Bld Dept 0 001.000.62.524.20.42.00 475.5 1 o iPhone/iPad Cell Service City Clerk 001.000.25.514.30.42.00 75.8E a iPhone/iPad Cell Service Econ E 001.000.61.557.20.42.00 75.9E .2 iPad Cell Service Council - 001.000.11.511.60.42.00 300.1( 0 iPhone/iPad Cell Service Court 001.000.23.512.50.42.00 75.8E o iPhone/iPad Cell Service Developmei 0- 001.000.62.524.10.42.00 95.9E Q iPhone/iPad Cell Service Engineering ti 001.000.67.518.21.42.00 919.8( iPhone/iPad Cell Service Facilities c 001.000.66.518.30.42.00 243.7� iPhone/iPad Cell Service Finance U) 001.000.31.514.23.42.00 145.9E U iPhone/iPad Cell Service HR 001.000.22.518.10.42.00 95.9E iPhone/iPad Cell Service IS +: 512.000.31.518.88.42.00 c 319.1 £ a� iPhone/iPad Cell Service Mayor's Offi E 001.000.21.513.10.42.00 101.1 z UM r Q Page: 26 Packet Pg. 52 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227764 10/5/2017 067865 VERIZON WIRELESS Voucher List City of Edmonds Invoice PO # Description/Account (Continued) iPhone/iPad Cell Service Parks Dept 001.000.64.571.21.42.00 iPhone/iPad Cell Service Police Dept 001.000.41.521.22.42.00 Air cards Police Dept 001.000.41.521.22.42.00 iPhone/iPad Cell Service Planning De 001.000.62.558.60.42.00 iPhone/iPad Cell Service PW Admin 001.000.65.518.20.42.00 iPhone/iPad Cell Service PW Admin 421.000.74.534.80.42.00 iPhone/iPad Cell Service PW Admin 422.000.72.531.90.42.00 iPhone/iPad Cell Service PW Admin 423.000.75.535.80.42.00 iPhone/iPad Cell Service PW Admin 423.000.76.535.80.42.00 iPhone/iPad Cell Service PW Street C 111.000.68.542.90.42.00 iPhone/iPad Cell Service PW Fleet 511.000.77.548.68.42.00 iPhone/iPad Cell Service PW Water/, 421.000.74.534.80.42.00 iPhone/iPad Cell Service PW Water/, 423.000.75.535.80.42.00 iPhone/iPad Cell Service Sewer Dept 423.000.75.535.80.42.00 iPhone/iPad Cell Service Water 421.000.74.534.80.42.00 iPad Cell Service Storm 422.000.72.531.90.42.00 iPad Cell Service Street/Storm 111.000.68.542.90.42.00 4.4.a Page: 27 m L 3 c Amoun 0 0 a m 0 249.5( m 1,329.21 Y m 1,175.7-1 80.0. m c aD 26.5( 0 7.5� o 26.5( a 7.5E 7.5E o R 227.8: 0 L Q. 55.9 1 Q ti 158.9E u� 0 158.9E c r 281.9( U E 338.4( 2 U 115.8E E 180.0: U r Q Page: 27 Packet Pg. 53 vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor 227764 10/5/2017 067865 VERIZON WIRELESS 227765 227766 227767 227768 Voucher List City of Edmonds Invoice (Continued) 9793348818 10/5/2017 067216 VIKING AUTOMATIC SPRINKLER CO 53633 10/5/2017 047455 WA ST DEPT OF TRANSPORTATION RE-313-ATB70918001 10/5/2017 075283 WAVE 10/5/2017 075635 WCP SOLUTIONS 8136 50 211 00055035 PO # Description/Account iPad Cell Service Street/Storm 422.000.72.531.90.42.00 iPhone/iPad Cell Service WWTP 423.000.76.535.80.42.00 iPhone/iPad Cell Service Parks 001.000.64.576.80.42.00 C/A 772540262-00001 Lift Station access 512.000.31.518.88.42.00 Total FS16,17,20, FAC, SR CENTER, PW FS16,17,20, FAC, Sr Center, PW - Fii 001.000.66.518.30.48.00 10.3% Sales Tax 001.000.66.518.30.48.00 Total IT MAINTENANCE & OPERATIONS F IT Maintenance & Operations Fiber O 512.000.31.518.87.48.00 Total FIBER HIGH SPEED INTERNET SEF High Speed Internet service 10/01/17 512.000.31.518.87.42.00 Total 10298919 FAC MAINT - SUPPLIES Fac Maint - Supplies 001.000.66.518.30.31.00 10.3% Sales Tax 001.000.66.518.30.31.00 10300987 FAC MAINT - TOWELS, DISINFECTP Fac Maint - Towels, Disinfectant, TT, 4.4.a Page: 28 m L 3 c Amoun 0 0 0- 0 180.0z i 713.4( Y m 151.9E m 44.5' a0i 8,443.6t 0 0 L 4,953.0( a 510.1E E 5,463.1E 0 R 704.6' o 704.6' a 2 ti 816.0( o 816.0( U E 105.8( .2 U Page: 28 Packet Pg. 54 4.4.a vchlist Voucher List Page: 29 10/05/2017 8:09:52AM City of Edmonds m L 3 Bank code : usbank c Voucher Date Vendor Invoice PO # Description/Account Amoun N 0 227768 10/5/2017 075635 WCP SOLUTIONS (Continued) a 001.000.66.518.30.31.00 1,201.6, 10.3% Sales Tax L 001.000.66.518.30.31.00 123.71 =a Total: 1,442.0� Y 227769 10/5/2017 076056 WEAVER, RACHEL WOTS PRESENTATIONS WOTS PRESENTATIONS t WOTS PRESENTATIONS 117.100.64.573.20.41.00 1,009.0( a Total: 1,009.0( y 227770 10/5/2017 075926 WESTERN EXTERMINATOR 1561320 PS - MONTHLY SVC PS - Monthly Svc 0 001.000.66.518.30.48.00 99.0( o 10.3% Sales Tax >+ 001.000.66.518.30.48.00 c� 10.2( a Total: 109.2( 227771 10/5/2017 073018 WINFIELD SOLUTIONS LLC 000061939180 PM: GR PRG S OVER, SNAPSHOT U PM: GR PRG S OVER, SNAPSHOT o 001.000.64.576.80.31.00 672.0( 10.3% Sales Tax 0 001.000.64.576.80.31.00 69.2' 0- Total: 741.2' Q 227772 10/5/2017 076088 WITCHEY, ERIC WOTS PRESENTATIONS C WOTS PRESENTATIONS AND MANI WOTS PRESENTATIONS AND MANI 0 117.100.64.573.20.41.00 844.0( o Total: r 844.0( N U 109 Vouchers for bank code : usbank Bank total : 1,201,264.8( E 109 Vouchers in this report Total vouchers : 1,201,264.8( c a� E t U r Q Page: 29 Packet Pg. 55 4.4.a vchlist 10/05/2017 8:09:52AM Bank code : usbank Voucher Date Vendor Voucher List City of Edmonds Invoice PO # Description/Account Page: 30 Amoun Page: 30 a Packet Pg. 56 4.4.b PROJECT NUMBERS (By Project Title) Project Engineering Accounting Project Funding Project Title Number Number 41 a� STM 12th Ave & Sierra Stormwater System Improvements c484 E51FE STR 15th St. SW Walkway (Edmonds Way to 8th Ave) c424 E3DC L_ STM 183rd PI SW Storm Repairs c491 E61FE 3 SWR 2013 Sanitary Sewer Pipe Rehabilitation c390 E2GB SWR 2013 Sewerline Replacement Project c398 E3GA r N 0 STR 2014 Chip Seals c451 E4CB a m STM 2014 Drainage Improvements c433 E41FA U L STM 2014 Lake Ballinger Associated Projects c436 E4FD "a STR 2014 Overlay Program c438 E4CA ui WTR 2014 Waterline Overlays c452 E4CC a� STM 2015 Citywide Drainage Improvements/Rehab Projects c466 E51FA r STR 2015 Overlay Program c463 E5CA c SWR 2015 Sewerline Overlays i007 E5CC 0 SWR 2015 Sewerline Replacement Project c441 E4GA o STR 2015 Traffic Calming c471 E5AB 0 a WTR 2015 Waterline Overlays c475 E5CB E .E WTR 2015 Waterline Replacement Program c440 E4JB 0 4- 0 STR 2016 Curb Ramp Upgrades i016 E6DC STR 2016 Overlay Program i008 E6CA o a SWR 2016 Sanitary Sewer Replacement Projects c469 E5GA a Q SWR 2016 Sewerline Overlays i010 E6CC ti WTR 2016 Water Comp Plan Update c460 E4JC c WTR 2016 Waterline Overlays i009 E6CB N WTR 2016 Waterline Replacement Projects c468 E5JA STR 2017 Curb Ramp Upgrades i022 E7DA E z STR 2017 Minor Sidewalk Program i023 E7DB o STR 2017 Overlay Program i018 E7CA d SWR 2017 Sanitary Sewer Replacement Project i013 E6GA �, SWR 2017 Sewerline Overlays i020 E7CC m STR 2017 Traffic Calming i021 E7AA L WTR 2017 Waterline Overlays i019 E7CB LL WTR 2017 Waterline Replacement Projects i014 E6J13 E SWR 2018/19 Sewerline Replacement Project c492 E6GC 0 WTR 2018/19 Waterline Replacement Project c493 E6JC Q STR 220th Street Overlay Project c462 E4CD STM 224th & 98th Drainage Improvements c486 E6FB Revised 7/27/2017 Packet Pg. 57 4.4.b PROJECT NUMBERS (By Project Title) Project Engineering Accounting Project Funding Project Title Number Number 41 a� WTR 224th Waterline Relocation (2013) c418 E3J13 STR 228th St. SW Corridor Improvements i005 E7AC L_ STR 236th St. SW Walkway (Edmonds Way to Madrona School) c425 E3DD 3 STR 238th St. SW Walkway (100th Ave to 104th Ave) c423 E3DB STR 238th St. SW Walkway (Edmonds Way to Hwy 99) c485 E6DA r N 0 a STM 3rd Ave Rain Gardens i012 E6FC m STR 76th Ave W at 212th St SW Intersection Improvements c368 E1CA U L STR 89th PI W Retaining Wall i025 E7CD STR 9th Avenue Improvement Project c392 E2AB ui FAC AN Upgrades - Council Chambers c476 E5LA a� STR ADA Curb Ramp Upgrades along 3rd Ave S c426 E3DE r STR ADA Transition Plan s016 E6DB c STR Audible Pedestrian Signals i024 E7AB 0 STR Bikelink Project c474 E5DA o PRK City Spray Park c417 E4MA 0 a SWR Citywide CIPP Sewer Rehab Phase I c456 E4GB E .E SWR Citywide CIPP Sewer Rehab Phase II c488 E6GB 0 STR Citywide Pedestrian Crossing Enhancements i026 E7DC STR Citywide Protected/Permissive Traffic Signal Conversion i015 E6AB o a WTR Dayton St. Utility Replacement Project (3rd Ave to 9th Ave) c482 E5J13 Q STM Dayton Street & SR104 Storm Drainage Alternatives c374 E1 FM ti PM Dayton Street Plaza c276 E7MA c STM Dayton Street Storm Improvements (6th Ave - 8th Ave) c472 E5FC N STM Dayton Street Stormwater Pump Station c455 E4FE FAC Edmonds Fishing Pier Rehab c443 E4MB E z STM Edmonds Marsh Feasibility Study c380 E2FC o General Edmonds Waterfront Access Analysis c478 E5DB d FAC ESCO III Project c419 E3LI3 PRK FAC Band Shell Replacement c477 E6MB m WTR Five Corners Reservoir Re -coating c473 E5KA L STR Five Corners Roundabout (212th Street SW @ 84th Avenue W) c342 E1AA U_ PM Fourth Avenue Cultural Corridor c282 E8MA E STR Hwy 99 Enhancements (Phase III) c405 E2AD 0 STR Hwy 99 Gateway Revitalization s014 E6AA Q SWR Lake Ballinger Trunk Sewer Study s011 E5GB STM LID Retrofits Perrinville Creek Basin c434 E4FB Revised 7/27/2017 Packet Pg. 58 4.4.b PROJECT NUMBERS (By Project Title) Project Engineering Accounting Project Funding Project Title Number Number SWR Lift Station #1 Basin & Flow Study c461 E4GC STIR Minor Sidewalk Program i017 E6DD STM North Talbot Road Drainage Improvements c378 E2FA STM Northstream Culvert Repair Under Puget Drive i011 E61FA STM Northstream Pipe Abandonment on Puget Drive c410 E3FE STM NPDES (Students Saving Salmon) m013 E7FG STM OVD Slope Repair & Stabilization m105 E71FA STM Perrinville Creek Culvert Replacement c376 E1 FN STM Perrinville Creek Stormwater Flow Reduction Retrofit Study c408 E3FC FAC Public Safety Controls System Upgrades c444 E41LA STM Seaview Park Infiltration Facility c479 E5FD WWTP Sewer Outfall Groundwater Monitoring c446 E4HA STIR SR104 Corridor Transportation Study c427 E3AB STIR SR104/City Park Mid -Block Crossing c454 E4DB UTILITIES Standard Details Updates solo E5NA STM Storm Drain Improvements @ 9510 232nd St. SW c495 E7FB STM Storm Drainage Improvements - 88th & 194th c429 E3FG STM Stormwater Comp Plan Update s017 E6FD STIR 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 c430 E3FH STIR Trackside Warning System c470 E5AA STIR Train Trench - Concept c453 E4DA STIR Transportation Plan Update c391 E2AA STM Update Stormwater Management Code & Associated Projects c467 E5FB UTILITIES Utility Rate Update s013 E6JA PRK Veteran's Plaza c480 E6MA STM Video Assessment of Stormwater Lines c459 E4FF PRK Waterfront Restoration m103 E7MA STM Willow Creek Daylighting/Edmonds Marsh Restoration c435 E4FC WWTP WWTP Outfall Pipe Modifications c481 E5HA PRK Yost Park Spa c494 E6MC Revised 7/27/2017 Packet Pg. 59 4.4.b PROJECT NUMBERS (By Engineering Number) Engineering Protect Protect Accounting Funding Number Number Protect Title STIR E1AA c342 Five Corners Roundabout (212th Street SW @ 84th Avenue W) STIR E1CA c368 76th Ave W at 212th St SW Intersection Improvements c354 Sunset Walkway Improvements STM ElFM c374 Dayton Street & SR104 Storm Drainage Alternatives Perrinville Creek Culvert Replacement EW STIR E2AA c391 Transportation Plan Update E2AB c392 9th Avenue Improvement Project STIR E2AD c405 Hwy 99 Enhancements (Phase III) albot Road Drainage Improvements STM E2FB c379 SW Edmonds Basin #3-238th St. SW to Hickman Park Infiltration Sy; Edmonds Marsh Feasibility Study SWR E2GB c390 2013 Sanitary Sewer Pipe Rehabilitation SR104 Corridor Transportation Study STIR E3DB c423 238th St. SW Walkway (100th Ave to 104th Ave) 15th St. SW Walkway fk-dmonds Way to 8t STIR E3DD c425 236th St. SW Walkway (Edmonds Way to Madrona School) ADA Curb Ramp Upgrades along 3rd Ave ■ STM E3FC c408 Perrinville Creek Stormwater Flow Reduction Retrofit Study orthstream Pipe Abandonment on Puget Drive STM E3FG c429 Storm Drainage Improvements - 88th & 194th SSW c430 Edmonds-105 torm Improvements SWR E3GA c398 2013 Sewerline Replacement Project 224th Waterline Relocation (2013) FAC E3LB c419 ESCO III Project 014 Overlay Program ■ STIR E4CB c451 2014 Chip Seals 2014 Waterline Overla ^� STIR E4CD c462 220th Street Overlay Project �Trairj STIR E4DB c454 SR104/City Park Mid -Block Crossing 2014 Drainage Improvemen STM E4FB c434 LID Retrofits Perrinville Creek Basin low Creek Daylighting/Edmonds Marsh Restoration STM E4FD c436 2014 Lake Ballinger Associated Projects STM E4FE Dayton Street Stormwater Pump Station STM E4FF c459 Video Assessment of Stormwater Lines Revised 7/27/2017 Packet Pg. 60 4.4.b PROJECT NUMBERS (By Engineering Number) Engineering Protect Protect Accounting Funding Number Number Protect Title SWR E4GA ' c441 2015 Sewerline Replacement Project SWR E4GB c456 Citywide CIPP Sewer Rehab Phase I SWR Lift Station #1 Basin & Flow Study WWTP E4HA c446 Sewer Outfall Groundwater Monitoring WTR 2015 Waterline Replacement Program WTR E4JC c460 2016 Water Comp Plan Update Public Safety Controls System Upgrades PRK E4MA c417 City Spray Park Edmonds Fishing Pier Rehab STR E5AA c470 Trackside Warning System 2015 Traffic Calming il STR E5CA c463 2015 Overlay Program 2015 Waterline Overlays - SWR E5CC i007 2015 Sewerline Overlays General E5DB c478 Edmonds Waterfront Access Analysis c466 2015 Citywide Drainage Improvements/Rehab Projects ■ STM E5FB c467 Update Stormwater Management Code & Associated Projects c472 Dayton Street Storm Improvements (6th Ave - 8th Ave) ■ STM E5FD c479 Seaview Park Infiltration Facility E5FEig mprover SWR E5GA c469 2016 Sanitary Sewer Replacement Projects Lake Ballinger Trunk Se Study WWTP E5HA c481 WWTP Outfall Pipe Modifications 2016 Waterline Replacement Projects WTR E5JB c482 Dayton St. Utility Replacement Project (3rd Ave to 9th Ave) orners Reservoir Re -coati n- FAC E5LA c476 AN Uoarades - Council Chambers solo Standard Details Updates STR E6AA s014 Hwy 99 Gateway Revitalization Citywide Protected/Permissive Traffic Signal Conversion STR E6CA i008 2016 Overlay Program 16 Waterline nvariave— SWR E6CC i010 2016 Sewerline Overlays 6DA 85 238th St. SW Walkway (Edmonds Way to Hwy 99) STR E6DB s016 ADA Transition Plan Revised 7/27/2017 Packet Pg. 61 4.4.b PROJECT NUMBERS (By Engineering Number) Engineering Protect Protect Accounting Funding Number Number Protect Title STIR E6DC ' i016 2016 Curb Ramp Upgrades STIR E6DD i017 Minor Sidewalk Program i011 Northstream Culvert Repair Under Puget Drive STM E6FB c486 224th & 98th Drainage Improvements 3rd Ave Rain Garden STM E6FD s017 Stormwater Comp Plan Update STM E6FE c491 183rd PI SW Storm Repairs SWR E6GA i013 2017 Sanitary Sewer Replacement Project idekIPP Sewer Rehab Phase SWR E6GC c492 2018/19 Sewerline Replacement Project Utility Rate Updat WTR E6J13 i014 2017 Waterline Replacement Projects 2018/19 Waterline Replacement Project PRK E6MA c480 Veteran's Plaza Band Shell Replacement PRK E6MC c494 Yost Park Spa E7AA i021 2017 Traffic Calming STIR E7AB i024 Audible Pedestrian Signals i005 228th St. SW Corridor Improvements STIR E7CA i018 2017 Overlav Proaram SWR E7CC i020 2017 Sewerline Overla 89th PI W Retaining Wall STIR E7DA i022 2017 Curb Ramp Upgrades E7DB i023 2017 Minor Sidewalk Program STIR E7DC i026 Citywide Pedestrian Crossing Enhancements QkD Slope Repair & Stabilization STM E7FB c495 Storm Drain Improvements @ 9510 232nd St. SW NPDES (Students Saving Salmon) PM E7MA c276 Dayton Street Plaza Waterfront Restoration PM E8MA c282 Fourth Avenue Cultural Corridor Revised 7/27/2017 Packet Pg. 62 4.4.b PROJECT NUMBERS (By New Project Accounting Number) Engineering Project Project Accounting vi Funding Number Number Project Title a� PM E7MA c276 Dayton Street Plaza PM E8MA c282 Fourth Avenue Cultural Corridor m L_ STIR E1AA c342 Five Corners Roundabout (212th Street SW @ 84th Avenue W) 3 STIR E1 DA c354 Sunset Walkway Improvements STIR E1CA c368 76th Ave W at 212th St SW Intersection Improvements r N 0 STM E1 FM c374 Dayton Street & SR104 Storm Drainage Alternatives a m STM E1 FN c376 Perrinville Creek Culvert Replacement U L STM E2FA c378 North Talbot Road Drainage Improvements STM E2FB c379 ui SW Edmonds Basin #3-238th St. SW to Hickman Park Infiltration System STM E2FC c380 Edmonds Marsh Feasibility Study a� SWR E2GB c390 2013 Sanitary Sewer Pipe Rehabilitation r STIR E2AA c391 Transportation Plan Update c STIR E2AB c392 9th Avenue Improvement Project 0 SWR E3GA c398 2013 Sewerline Replacement Project o STIR E2AD c405 Hwy 99 Enhancements (Phase III) 0 a STM E3FC c408 Perrinville Creek Stormwater Flow Reduction Retrofit Study E STM EYE c410 Northstream Pipe Abandonment on Puget Drive 0 PRK E4MA c417 City Spray Park WTR E3J13 c418 224th Waterline Relocation (2013) o 0- FAC E3LB c419 ESCO III Project a Q STIR E3DB c423 238th St. SW Walkway (100th Ave to 104th Ave) ti STIR E3DC c424 15th St. SW Walkway (Edmonds Way to 8th Ave) c STIR E3DD c425 236th St. SW Walkway (Edmonds Way to Madrona School) N STIR E3DE c426 ADA Curb Ramp Upgrades along 3rd Ave S STIR c427 SR104 Corridor Transportation Study z STM E3FG c429 Storm Drainage Improvements - 88th & 194thIL o STM E3FH c430 SW Edmonds-105th/106th Ave W Storm Improvements W STM E4FA c433 2014 Drainage Improvements �, STM E4FB c434 LID Retrofits Perrinville Creek Basin c m STM E4FC c435 Willow Creek Daylighting/Edmonds Marsh Restoration L STM E4FD c436 2014 Lake Ballinger Associated Projects U- STR E4CA c438 2014 Overlay Program E WTR E4J13 c440 2015 Waterline Replacement Program 0 SWR E4GA c441 2015 Sewerline Replacement Project Q FAC E4MB c443 Edmonds Fishing Pier Rehab FAC E41LA c444 Public Safety Controls System Upgrades Revised 7/27/2017 Packet Pg. 63 4.4.b PROJECT NUMBERS (By New Project Accounting Number) Engineering Project Project Accounting vi Funding Number Number Protect Title a� WWTP E4HA c446 Sewer Outfall Groundwater Monitoring STIR E4CB c451 2014 Chip Seals L_ WTR E4CC c452 2014 Waterline Overlays 3 STIR E4DA c453 Train Trench - Concept STIR E4DB c454 SR104/City Park Mid -Block Crossing r N 0 a STM E4FE c455 Dayton Street Stormwater Pump Station m SWR E4GB c456 Citywide CIPP Sewer Rehab Phase I U L STM E4FF c459 Video Assessment of Stormwater Lines WTR E4JC c460 2016 Water Comp Plan Update ui SWR E4GC c461 Lift Station #1 Basin & Flow Study a� STIR E4CD c462 220th Street Overlay Project r STIR E5CA c463 2015 Overlay Program c STM E5FA c466 2015 Citywide Drainage Improvements/Rehab Projects 0 STM E5FB c467 Update Stormwater Management Code & Associated Projects o WTR E5JA c468 2016 Waterline Replacement Projects 0 a SWR E5GA c469 2016 Sanitary Sewer Replacement Projects E STIR E5AA c470 Trackside Warning System 0 STIR E5AB c471 2015 Traffic Calming STM E5FC c472 Dayton Street Storm Improvements (6th Ave - 8th Ave) o a WTR E5KA c473 Five Corners Reservoir Re -coating a Q STIR E5DA c474 Bikelink Project ti WTR E5CB c475 2015 Waterline Overlays c FAC E5LA c476 AN Upgrades - Council Chambers N PRK E6MB c477 FAC Band Shell Replacement General E5DB c478 Edmonds Waterfront Access Analysis z STM E5FD c479 Seaview Park Infiltration Facility o PRK E6MA c480 Veteran's Plaza 'D d WWTP E5HA c481 WWTP Outfall Pipe Modifications �, WTR E5J13 c482 Dayton St. Utility Replacement Project (3rd Ave to 9th Ave) STM E5FE c484 12th Ave & Sierra Stormwater System Improvements L STIR E6DA c485 238th St. SW Walkway (Edmonds Way to Hwy 99) STM E6FB c486 224th & 98th Drainage Improvements E SWR E6GB c488 Citywide CIPP Sewer Rehab Phase II 0 STM E6FE c491 183rd PI SW Storm Repairs Q SWR E6GC c492 2018/19 Sewerline Replacement Project WTR E6JC c493 2018/19 Waterline Replacement Project Revised 7/27/2017 Packet Pg. 64 4.4.b PROJECT NUMBERS (By New Project Accounting Number) Engineering Project Project Accounting Funding Number Number Protect Title PRK E61VIC c494 Yost Park Spa STM E7FB c495 Storm Drain Improvements @ 9510 232nd St. SW STIR E7AC i005 228th St. SW Corridor Improvements SWR E5CC i007 2015 Sewerline Overlays STIR E6CA i008 2016 Overlay Program WTR E6CB i009 2016 Waterline Overlays SWR E6CC iolo 2016 Sewerline Overlays STM E6FA i011 Northstream Culvert Repair Under Puget Drive STM E61FC i012 3rd Ave Rain Gardens SWR E6GA i013 2017 Sanitary Sewer Replacement Project WTR E6JB i014 2017 Waterline Replacement Projects STIR E6AB i015 Citywide Protected/Permissive Traffic Signal Conversion STIR E6DC i016 2016 Curb Ramp Upgrades STIR E6DD i017 Minor Sidewalk Program STIR E7CA i018 2017 Overlay Program WTR E7CB i019 2017 Waterline Overlays SWR E7CC i02o 2017 Sewerline Overlays STIR E7AA i021 2017 Traffic Calming STIR E7DA i022 2017 Curb Ramp Upgrades STIR E7DB i023 2017 Minor Sidewalk Program STIR E7AB i024 Audible Pedestrian Signals STIR E7CD i025 89th PI W Retaining Wall STIR E7DC i026 Citywide Pedestrian Crossing Enhancements STM E71FG m013 NPDES (Students Saving Salmon) PRK E7MA m103 Waterfront Restoration STM E7FA m105 OVD Slope Repair & Stabilization UTILITIES E5NA solo Standard Details Updates SWR E5GB s011 Lake Ballinger Trunk Sewer Study UTILITIES E6JA s013 Utility Rate Update STIR E6AA s014 Hwy 99 Gateway Revitalization STIR E6DB s016 ADA Transition Plan STM E6FD s017 Stormwater Comp Plan Update Revised 7/27/2017 Packet Pg. 65 4.4.b PROJECT NUMBERS (By Funding) Project Engineering Accounting Project Funding Project Title Number Number FAC A/V Upgrades - Council Chambers c476 E5LA FAC Edmonds Fishing Pier Rehab c443 E4MB FAC ESCO III Project c419 E3LB FAC Public Safety Controls System Upgrades c444 E41-A General Edmonds Waterfront Access Analysis c478 E5DB PM Dayton Street Plaza c276 E7MA PM Fourth Avenue Cultural Corridor c282 E8MA PRK City Spray Park c417 E4MA PRK FAC Band Shell Replacement c477 E6MB PRK Veteran's Plaza c480 E6MA PRK Waterfront Restoration m103 E7MA PRK Yost Park Spa c494 E6MC STM 12th Ave & Sierra Stormwater System Improvements c484 E5FE STM 183rd PI SW Storm Repairs c491 E6FE STM 2014 Drainage Improvements c433 E4FA STM 2014 Lake Ballinger Associated Projects c436 E4FD STM 2015 Citywide Drainage Improvements/Rehab Projects c466 E5FA STM 224th & 98th Drainage Improvements c486 E6FB STM 3rd Ave Rain Gardens i012 E6FC STM Dayton Street & SR104 Storm Drainage Alternatives c374 E1 FM STM Dayton Street Storm Improvements (6th Ave - 8th Ave) c472 E5FC STM Dayton Street Stormwater Pump Station c455 E4FE STM Edmonds Marsh Feasibility Study c380 E2FC STM LID Retrofits Perrinville Creek Basin c434 E4FB STM North Talbot Road Drainage Improvements c378 E2FA STM Northstream Culvert Repair Under Puget Drive i011 E6FA STM Northstream Pipe Abandonment on Puget Drive c410 E3FE STM NPDES (Students Saving Salmon) m013 E7FG STM OVD Slope Repair & Stabilization m105 E7FA STM Perrinville Creek Culvert Replacement c376 E1 FN STM Perrinville Creek Stormwater Flow Reduction Retrofit Study c408 E3FC STM Seaview Park Infiltration Facility c479 E5FD STM Storm Drain Improvements @ 9510 232nd St. SW c495 E7FB STM Storm Drainage Improvements - 88th & 194th c429 E3FG STM Stormwater Comp Plan Update s017 E6FD Revised 7/27/2017 Packet Pg. 66 4.4.b PROJECT NUMBERS (By Funding) Project Engineering Accounting Project Funding Project Title Number Number STM SW Edmonds Basin #3-238th St. SW to Hickman Park Infiltration System c379 E2FB STM SW Edmonds-105th/106th Ave W Storm Improvements c430 E3FH STM Update Stormwater Management Code & Associated Projects c467 E5FB STM Video Assessment of Stormwater Lines c459 E4FF STM Willow Creek Daylighting/Edmonds Marsh Restoration c435 E4FC STIR 15th St. SW Walkway (Edmonds Way to 8th Ave) c424 E3DC STIR 2014 Chip Seals c451 E4CB STIR 2014 Overlay Program c438 E4CA STIR 2015 Overlay Program c463 E5CA STIR 2015 Traffic Calming c471 E5AB STIR 2016 Curb Ramp Upgrades i016 E6DC STIR 2016 Overlay Program i008 E6CA STIR 2017 Curb Ramp Upgrades i022 E7DA STIR 2017 Minor Sidewalk Program i023 E7DB STIR 2017 Overlay Program i018 E7CA STIR 2017 Traffic Calming i021 E7AA STIR 220th Street Overlay Project c462 E4CD STIR 228th St. SW Corridor Improvements i005 E7AC STIR 236th St. SW Walkway (Edmonds Way to Madrona School) c425 E3DD STIR 238th St. SW Walkway (100th Ave to 104th Ave) c423 E3DB STIR 238th St. SW Walkway (Edmonds Way to Hwy 99) c485 E6DA STIR 76th Ave W at 212th St SW Intersection Improvements c368 E1CA STIR 89th PI W Retaining Wall i025 E7CD STIR 9th Avenue Improvement Project c392 E2AB STIR ADA Curb Ramp Upgrades along 3rd Ave S c426 E3DE STIR ADA Transition Plan s016 E6DB STIR Audible Pedestrian Signals i024 E7AB STIR Bikelink Project c474 E5DA STIR Citywide Pedestrian Crossing Enhancements i026 E7DC STIR Citywide Protected/Permissive Traffic Signal Conversion i015 E6AB STIR Five Corners Roundabout (212th Street SW @ 84th Avenue W) c342 E1AA STIR Hwy 99 Enhancements (Phase III) c405 E2AD STIR Hwy 99 Gateway Revitalization s014 E6AA STIR Minor Sidewalk Program i017 E6DD STIR SR104 Corridor Transportation Study c427 E3AB Revised 7/27/2017 Packet Pg. 67 4.4.b PROJECT NUMBERS (By Funding) Project Engineering Accounting Project Funding Project Title Number Number STR SR104/City Park Mid -Block Crossing c454 E4DB STR Sunset Walkway Improvements c354 E1DA STR Trackside Warning System c470 E5AA STR Train Trench - Concept c453 E4DA STR Transportation Plan Update c391 E2AA SWR 2013 Sanitary Sewer Pipe Rehabilitation c390 E2GB SWR 2013 Sewerline Replacement Project c398 E3GA SWR 2015 Sewerline Overlays i007 E5CC SWR 2015 Sewerline Replacement Project c441 E4GA SWR 2016 Sanitary Sewer Replacement Projects c469 E5GA SWR 2016 Sewerline Overlays i010 E6CC SWR 2017 Sanitary Sewer Replacement Project i013 E6GA SWR 2017 Sewerline Overlays i020 E7CC SWR 2018/19 Sewerline Replacement Project c492 E6GC SWR Citywide CIPP Sewer Rehab Phase I c456 E4GB SWR Citywide CIPP Sewer Rehab Phase II c488 E6GB SWR Lake Ballinger Trunk Sewer Study s011 E5GB SWR Lift Station #1 Basin & Flow Study c461 E4GC UTILITIES Standard Details Updates solo E5NA UTILITIES Utility Rate Update s013 E6JA WTR 2014 Waterline Overlays c452 E4CC WTR 2015 Waterline Overlays c475 E5CB WTR 2015 Waterline Replacement Program c440 E4JB WTR 2016 Water Comp Plan Update c460 E4JC WTR 2016 Waterline Overlays i009 E6CB WTR 2016 Waterline Replacement Projects c468 E5JA WTR 2017 Waterline Overlays i019 E7CB WTR 2017 Waterline Replacement Projects i014 E6JB WTR 2018/19 Waterline Replacement Project c493 E6JC WTR 224th Waterline Relocation (2013) c418 E3JB WTR Dayton St. Utility Replacement Project (3rd Ave to 9th Ave) c482 E5JB WTR Five Corners Reservoir Re -coating c473 E51KA WWTP Sewer Outfall Groundwater Monitoring c446 E4HA WWTP WWTP Outfall Pipe Modifications c481 E5HA Revised 7/27/2017 Packet Pg. 68 4.4.c Payroll Earnings Summary Report City of Edmonds Pay Period: 833 (09/16/2017 to 09/30/2017) Hour Type Hour Class Description Hours Amount -ed2 REGULAR HOURS Educational Pav Correction 0.00 -156.28 111 ABSENT NO PAY LEAVE 28.00 0.00 121 SICK SICK LEAVE 616.00 23,268.38 122 VACATION VACATION 1,059.55 45,245.50 123 HOLIDAY HOLIDAY HOURS 95.00 3,150.55 124 HOLIDAY FLOATER HOLIDAY 17.00 631.04 125 COMP HOURS COMPENSATORY TIME 115.50 4,063.17 129 SICK Police Sick Leave L & 1 63.25 2,526.47 130 COMP HOURS Holidav Compensation Used 18.00 750.93 132 JURY DUTY JURY DUTY 24.00 978.57 141 BEREAVEMENT BEREAVEMENT 9.00 374.54 150 REGULAR HOURS Kellv Dav Used 121.50 4,346.29 155 COMP HOURS COMPTIME AUTO PAY 104.13 4,755.07 160 VACATION MANAGEMENT LEAVE 4.00 298.94 170 REGULAR HOURS COUNCIL BASE PAY 700.00 7,000.00 174 REGULAR HOURS COUNCIL PRESIDENTS PAY 0.00 200.00 175 REGULAR HOURS COUNCIL PAY FOR NO MEDICP 0.00 3,624.04 190 REGULAR HOURS REGULAR HOURS 15,520.55 607,699.65 191 REGULAR HOURS FIRE PENSION PAYMENTS 4.00 4,127.68 196 REGULAR HOURS LIGHT DUTY 187.75 10,567.04 210 OVERTIME HOURS OVERTIME -STRAIGHT 9.50 366.83 215 OVERTIME HOURS WATER WATCH STANDBY 36.00 1,794.07 216 MISCELLANEOUS STANDBY TREATMENT PLANT 7.00 653.94 220 OVERTIME HOURS OVERTIME 1.5 196.50 12,647.82 225 OVERTIME HOURS OVERTIME -DOUBLE 3.00 200.56 410 MISCELLANEOUS WORKING OUT OF CLASS 0.00 311.79 411 SHIFT DIFFERENTIAL SHIFT DIFFERENTIAL 0.00 1,034.29 600 RETROACTIVE PAY RETROACTIVE PAY 0.00 4,468.16 601 COMP HOURS ACCRUED COMP .5 2.75 0.00 602 COMP HOURS ACCRUED COMP 96.20 0.00 604 COMP HOURS ACCRUED COMP TIME 93.00 0.00 606 COMP HOURS ACCRUED COMP TIME 6.25 0.00 acc MISCELLANEOUS ACCREDITATION PAY 0.00 43.95 10/05/2017 Packet Pg. 69 4.4.c Payroll Earnings Summary Report City of Edmonds Pay Period: 833 (09/16/2017 to 09/30/2017) Hour Type Hour Class Description Hours Amount acp MISCELLANEOUS Accreditation 1 % Part Time 0.00 0.00 acs MISCELLANEOUS ACCRED/POLICE SUPPORT 0.00 166.62 boc MISCELLANEOUS BOC II Certification 0.00 86.48 colre MISCELLANEOUS Collision Reconstruction ist 0.00 107.89 cpl MISCELLANEOUS TRAINING CORPORAL 0.00 147.28 crt MISCELLANEOUS CERTIFICATION III PAY 0.00 640.76 det MISCELLANEOUS DETECTIVE PAY 0.00 102.75 det4 MISCELLANEOUS Detective 4% 0.00 983.26 ed1 EDUCATION PAY EDUCATION PAY 2% 0.00 724.94 ed2 EDUCATION PAY EDUCATION PAY 4% 0.00 893.96 ed3 EDUCATION PAY EDUCATION PAY 6% 0.00 4,754.46 fmla ABSENT FAMILY MEDICAL/NON PAID 192.65 0.00 fmis SICK FAMILY MEDICAL/SICK 43.25 1,647.53 fmlv VACATION Familv Medical Leave Vacation 3.35 114.97 k9 MISCELLANEOUS K-9 PAY 0.00 102.75 Iq1 LONGEVITY LONGEVITY PAY 2% 0.00 849.05 Ig10 LONGEVITY LONGEVITY 5.5% 0.00 396.36 Ig11 LONGEVITY LONGEVITY PAY 2.5% 0.00 919.55 Ici2 LONGEVITY PAY LONGEVITY PAY 4% 0.00 832.28 I0 LONGEVITY PAY LONGEVITY 6% 0.00 5,727.48 Iq4 LONGEVITY Lonqevitv 1 % 0.00 213.81 Iq6 LONGEVITY Lonqevitv .5% 0.00 361.02 Iq7 LONGEVITY Lonqevitv 1.5% 0.00 850.79 Iq9 LONGEVITY Lonqevitv 3.5% 0.00 82.46 melk KELLY DAY Medical Leave Kelly Dav 18.00 671.74 mels SICK Medical Leave Sick 182.00 6,636.85 melv VACATION Medical Leave Vacation 59.00 2,132.81 mtc MISCELLANEOUS MOTORCYCLE PAY 0.00 205.50 nds MISCELLANEOUS Public Disclosure Specialist 0.00 47.12 phv MISCELLANEOUS PHYSICAL FITNESS PAY 0.00 1,914.44 prof MISCELLANEOUS PROFESSIONAL STANDARDS 0.00 157.56 sdp MISCELLANEOUS SPECIAL DUTY PAY 5% 0.00 271.15 sqt MISCELLANEOUS ADMINISTRATIVE SERGEANT 0.00 157.56 10/05/2017 Packet Pg. 70 4.4.c Payroll Earnings Summary Report City of Edmonds Pay Period: 833 (09/16/2017 to 09/30/2017) Hour Type Hour Class Description Hours str MISCELLANEOUS STREET CRIMES 0.00 traf MISCELLANEOUS TRAFFIC 0.00 19,635.68 Total Net Pay: Amount 424.98 215.99 $778,515.14 $518,165.82 10/05/2017 Packet Pg. 71 4.4.d Hour Type 215 Hour Class OVERTIME HOURS Payroll Earnings Summary Report City of Edmonds Pay Period: 891 (10/05/2017 to 10/05/2017) Description WATER WATCH STANDBY Hours Amount 12.00 578.77 12.00 $578.77 Total Net Pay: $488.12 10/05/2017 Packet Pg. 72 4.4.e Benefit Checks Summary Report City of Edmonds Pay Period: 833 - 09/16/2017 to 09/30/2017 Bank: usbank - US Bank Check # Date Payee # Name Check Amt Direct Deposit 62858 10/05/2017 chapl CHAPTER 13 TRUSTEE 940.00 0.00 62859 10/05/2017 epoa EPOA-1 POLICE 1,196.00 0.00 62860 10/05/2017 epoa4 EPOA-4 POLICE SUPPORT 143.00 0.00 62861 10/05/2017 jhan JOHN HANCOCK 889.22 0.00 62862 10/05/2017 flex NAVIA BENEFIT SOLUTIONS 1,052.05 0.00 62863 10/05/2017 cope SEIU COPE 92.00 0.00 62864 10/05/2017 seiu SEIU LOCAL 925 4,179.42 0.00 62865 10/05/2017 uw UNITED WAY OF SNOHOMISH COUNTY 1,076.00 0.00 62866 10/05/2017 icma VANTAGE TRANSFER AGENTS 304884 2,987.77 0.00 12,555.46 0.00 Bank: wire - US BANK Check # Date Payee # Name Check Amt Direct Deposit 2613 10/05/2017 pens DEPT OF RETIREMENT SYSTEMS 274,627.18 0.00 2614 10/05/2017 aflac AFLAC 5,551.48 0.00 2617 10/05/2017 wadc WASHINGTON STATE TREASURER 19,029.86 0.00 2618 10/05/2017 us US BANK 105,929.74 0.00 2619 10/05/2017 mebt WTRISC FBO #N3177B1 94,581.44 0.00 2621 10/05/2017 pb NATIONWIDE RETIREMENT SOLUTION 5,773.44 0.00 2622 10/05/2017 oe OFFICE OF SUPPORT ENFORCEMENT 347.50 0.00 0.00 505,840.64 Grand Totals: 518,396.10 0.00 Lh 0 0 a c m 0 L CD I_ U M Q 10/5/2017 Packet Pg. 73 5.1 City Council Agenda Item Meeting Date: 10/10/2017 Fire Prevention Week Proclamation (5 min.) Staff Lead: Mayor Earling Department: Mayor's Office Preparer: Carolyn LaFave Background/History Fire Prevention Week is on record as the longest running public health observance, according to the National Archives and Records Administration's Library Information Center. President Calvin Coolidge proclaimed the first National Fire Prevention Week on October 4-10, 1925, beginning a tradition of the President of the United States signing a proclamation recognizing the occasion. It is observed on the Sunday through Saturday period in which October 9 falls, in commemoration of the Great Chicago Fire, which began October 8,1871, and did most of its damage October 9. Staff Recommendation Narrative This year's theme is "Every Second Counts: Plan 2 Ways Out!" Fire District 1 will be hosting an Open House on 10/14/17 from 10 am - 1 pm at Station 21 (164th & 15). They will also be conducting school programs and civic group presentations around this year's theme and general fire safety. Accepting the proclamation on behalf of Fire District 1 is Kevin Zweber, Deputy Chief - Fire Marshal. Attachments: FPW_2017 Packet Pg. 74 lJr1oIrfamatian O City of Edmonds o Office of the Mayor FIRE NFPA I �PREVENTION Y � � WEEK CTOBEE OR 8-14, 2017 PLAN 2 WAYS OUT" � l�� �ueprrvrn�ion:,rr WHEREAS: The City of Edmonds is committed to ensuring the safety and security of all residents; and c WHEREAS: U.S. fire departments responded to 365,500 home fires in 2015, according to the National Fire Protection r E Association (NFPA); and WHEREAS: U.S. home fires resulted in 2,560 civilian deaths in 2015, representing the majority (78 percent) of all U.S. 0 a fire deaths; and WHEREAS: Newer homes are built with lightweight materials that burn faster than older home constructions; and m WHEREAS: Many of today's products and furnishings produce toxic gases and smoke when burned, making it c impossible to see and breathe within moments; and WHEREAS: These conditions contribute to a much smaller window of time for people to escape a home fire safely, a with people having as little as one to two minutes to escape from the time the smoke alarm sounds; and m WHEREAS: A home fire escape plan provides the skill set and know-how to quickly and safely escape a home fire situation; and WHEREAS: A home fire escape plan includes two exits from every room in the home; a path to the outside from each 0 N�I exit; smoke alarms in all required locations; and a meeting place outside where everyone in the home will a meet upon exiting; and LL WHEREAS: Home fire escape plans should be developed by all members of the household; and c E WHEREAS: Practicing a home fire escape plan twice a year ensures that everyone in the household knows what to do U in a real fire situation; and a WHEREAS: The City of Edmonds first responders are dedicated to reducing the occurrence of home fires and home fire injuries through prevention and protection education; and WHEREAS: The City of Edmonds residents are responsive to public education measures and are able to take personal steps to increase their safety from fire, especially in their homes; and WHEREAS: The 2017 Fire Prevention Week theme, "Every Second Counts: Plan 2 Ways Out!" effectively serves to educate the public about the vital importance of developing a home fire escape plan with all members of the household and practicing it twice a year; THEREFORE, I, David O. Earling, Mayor of the City of Edmonds, do hereby proclaim October 8-14, 2017 Fire Prevention Week throughout Edmonds I urge all residents to develop a home fire escape plan with all members of the and to participate in the public safety activities and efforts of S� during Fire Prevention Week 2017. ' usehold and practice it twice a year, i Snohomi>hCounty Fire & Rescue David O. Earling, Mayor 5.2 City Council Agenda Item Meeting Date: 10/10/2017 Presentation of the Proposed 2018 City Budget (15 min.) Staff Lead: Scott James Department: Administrative Services Preparer: Scott James Mayor Earling presents his proposed budget to Council. Staff Recommendation N/A Narrative With the submittal of the Mayor's recommended 2018 Budget, the Council will begin their review and consideration of the Budget and possible amendments that will result in an adopted 2018 Edmonds City Budget. The 2018 Preliminary Budget Book will be available when the Council breaks for their Committee Sessions. Tentative Department Budget Presentations are scheduled as follows: October 17th: Public Works Utilities, Street, Public Works Administration, Facilities Maintenance, Equipment Rental and Engineering. October 24th: 1. Economic Development; 2. Development Services; 3. Parks; 4. Human Resources; 4. City Attorney and 5. Municipal Court. November 7th: 1. Police Department; 2. City Clerk; 3. Mayor's Office, Council; 4. Finance & Information Services and 5. Non -departmental. November 7th: Revenue Sources. November 14th: Public Hearing on Preliminary 2018 Budget and Public Comment. November 14th: Public Hearing on Property Tax Resolution and Ordinance Adoption and Public Comment. Packet Pg. 76 5.2 November 21st: Public Hearing and Potential Adoption of the 2018 Budget and Public Comment. November 28th: 2018 Budget Review and Adoption of the 2018 Budget (if necessary). December 5th: 2018 Budget Review and Adoption of the 2018 Budget (if necessary). Packet Pg. 77 7.1 City Council Agenda Item Meeting Date: 10/10/2017 Authorize Parks and Recreation Department to dispose of surplus equipment (10 min.) Staff Lead: Carrie Hite Department: Parks, Recreation & Cultural Services Preparer: David Johnson Background/History The City's Capital Asset Policy and City Code provides guidance to gain council approval to sell or dispose of City property. Staff Recommendation Dispose equipment as noted and approve via Consent Agenda Narrative The Parks and Recreation Department has a number of surplus items for disposal. Below is the list of surplus items we intend to dispose and the proposed plan for such disposal: 1. Approximately 1,000 old and mismatched brick pavers accumulated from a variety of past projects. - Ballard Re -Use Salvage will accept them at no cost, as opposed to disposing them at a landfill facility. 2. Print Photography Equipment including 5 enlargers, a print dryer, water tables/bins, partitions, and miscellaneous small supplies and chemicals. The Department has not run a photography program in many years and the last drop -in use was in 2014. We do not have plans to re -install a photography program. As a result, we no longer have a need for this equipment. - Attempt to sell the equipment and/or donate to local photography group(s) or schools. Proceeds from the sale of equipment would be used to offset any disposal cost and then go into Youth Scholarship Fund. 3. Miscellaneous equipment located under the grandstand at Civic Center Park - Usable and functional equipment will be re -located to a different storage location within our system. Old, unusable equipment will be safely disposed of at an appropriate facility. Packet Pg. 78 7.2 City Council Agenda Item Meeting Date: 10/10/2017 Utility Easements for existing utilities within the Providence/Verdant Health & Swedish/Stevens Campus (10 min) Staff Lead: Rob English Department: Engineering Preparer: Katie MacCaul Background/History Staff Recommendation Forward this item to the consent agenda for approval at the October 17, 2017 Council meeting for signature by the Mayor Narrative When the existing hospital campus, located at 21601 76t" Ave W, was redeveloped recently it was discovered during the early phases of the project that all the City of Edmonds owned water/sewer/storm utilities that cross the campus did not have any formal easement agreements between the City and Verdant Health/Providence, which own the parcels. After further discussions between all parties it was determined that since some of the City owned utilities needed to be relocated by Swedish for construction of the hospital expansion and the new parking structure, it would be prudent that these easements and their boundaries be formalized only after the construction phase. This would ensure that the easements would reflect the as -built conditions of the utilities and also minimize the process needed to get these easements in place, because the utility realignment process would have instead required some of easements to be vacated and new easement be put in place. The easements provided will cover all of the City owned storm and sanitary sewer utilities and the majority of the water utility. The exception being approximately 500 linear feet of watermain located in the NW corner of the campus. The reason for this omission is included below. During this process the City has also been in discussions with Swedish in regard to portions of the water utility near the NW corner of the campus that the City needs to upgrade in the next 3 to 5 years. This upgrade also requires that the existing water meter that supplies water to the original hospital building be replaced and upgraded due to age and also because in its current layout it is not possible to maintain without the City shutting down water to the entire existing multi story hospital building. The hospital is currently in the process of procuring funds to design/build an emergency backup feed/tie-in location so that the City can replace the meter and also upgrade the water mains in that area. They expect to have it constructed by 2019. Once the location of the backup feed is finalized, the City can finalize the alignment and design of the water main replacement and coordinate the aspects of design and construction with Swedish. After the replacement of this main and service one final easement will be drafted between all parties covering the realignment of the water main. Packet Pg. 79 7.2 The current documents were approved by all legal teams involved and by the Verdant Health commission. It was then signed by all required non City parties and delivered to the City. (See Exhibit A for easement documents and easement limits.) Attachments: Easement Docs overall easement map Packet Pg. 80 7.2.a 7 EIVED SEP 2 8 2017 ENC11NEERINa DIVISION Return Address: City Clerk City of Edmonds 121 - 5th Ave. N. Edmonds, WA 98020 Grantor(s): Public Hospital District No, 2, Snohomish County Grantee: City of Edmonds Abbreviated Legal: Solners 5 Acre Tracts Blk 000 D-01 - Land Only On Fdp: The W 331.60Ft Of Tr 29 Exc Th Ptn Of Tr 29 Ly Wly Of Fdl - Com At Nw Cor Sd Tr 29 Th Ely All; N Bdy 42.12Ft To Beg Of Ln Herein Desc Th Sly Tap35.44Ft Fr Sw Cor Of Sd Tr 29 As Meas All; S Bdy Sd Tr & Term Of Ln Herein Desc (Per City Edm Bla Rec Af No 199909155005): Refer To 00580700002902 For Bldgs. Assessor's Property Tax Parcel No.: 58070000290100 UTILITY EASEMENT Property Address: 7320 2161h Street SW, Lynnwood, WA 98036 IN CONSIDERATION of benefits to accrue to the grantor(s) herein, the undersigned, PUBLIC HOPSITAL DISTRICT 2 SNOHOMISH CO., dba Verdant Health Commission, a Municipal Corporation ("GRANTOR") hereby grant(s) to the CITY OF EDMONDS, a Municipal Corporation ("GRANTEE"), a permanent, non-exclusive easement for the installation, construction, operation, maintenance, repair, reconstruction and/or replacement of a utility improvement and necessary appurtenances (collectively, the "Utility Systems"), over, across, through, and below the following described property, and the further right, at GRANTEE's sole expense, to remove trees, bushes, undergrowth and other obstructions thereon interfering with the location, construction, operation, maintenance, repair, reconstruction and/or replacement of the Utility Systems, together with the right of access to the Easement Area (defined below) at any time for the stated purposes. The easement hereby granted is located in the COUNTY OF SNOHOMISH, STATE OF WASHINGTON, across the parcel described on Exhibit A and labeled as the "Property". The specific location of the easement area is more particularly described on Exhibit A and labeled as the "Easement Area". The Easement Area is depicted on the drawing attached as Exhibit B. GRANTEE shall, at GRANTEE'S sole expense, be responsible for the maintenance, repair, replacement, removal, relocation and reconstruction of the Utility Systems, and shall perform the same in a manner so as to minimize, the extent reasonably possible under the circumstances, any disruption to the operations of the Property caused by the foregoing. Further, GRANTEE agrees to restore to substantially the original condition such improvements (including, without limitation, paving, curbing, drainage facilities, and landscaping) as are disturbed during the construction, maintenance, and repair of the Utility Systems, provided GRANTOR, their heirs, lessees, or assigns shall not construct any permanent structure (e,g., a building, parking garage or other vertical improvement) over, upon, or within the Easement Area. GRANTEE agrees to indemnify, defend and hold GRANTOR, as well as any holder of a long term leasehold interest in the Property (each an "Indemnified Party") harmless from any and all liability or damage, including attorneys' fees and costs, incurred or arising directly from GRANTEE's use, maintenance, repair, replacement, removal, relocation and reconstruction of and access to the Utility Systems, except that GRANTOR shall have no obligation to indemnify, defend, or hold an Indemnified Party harmless from any of the foregoing arising from such Indemnified Parry's negligent acts or omissions. GRANTOR, for itself and for any Indemnified Party, expressly reserves all rights not inconsistent with those granted to GRANTEE herein, including, without limitation, the right to park vehicles on, and drive vehicles over and through, the Easement Area. GRANTOR, GRANTEE, and any holder of a long term leasehold interest in the Property shall reasonably cooperate with the other in the performance of their obligations stated herein and to affect the purposes of this Utility Easement, (Signatures on the following page) Packet Pg. 81 7.2.a 1-4 DATED THIS DAY OF ]Ul�� A — .sue l Grantor: obin renn, Verdant Health Commission Consented to by Stevens Pavilion, LLC, which holds a long term leasehold interest in the Property as of the date of this Utility Easement: Stevens Pavilion, LLC By:T Prim Namc:�tni�rL1c'i.� � Title: et>sor I °'nt Accepted by the City Council dated day of , 20 CITY OF EDMONDS By ATTEST/AUTHENTICATED: David O. Earling, Mayor Scott Passey, City Clerk APPROVED AS TO FORM: Office of the City Attorney STATE OF WASHINGTON) ) ss COUNTY OF SNOHOMISH) On this day personally appeared before me to me (mown to be the individual(s) described in and who executed the within and foregoing instrument and acknowledged that they signed the same as their free and voluntary act and deed, for the uses and purposes therein mentioned. UNDER MY HAND AND OFFICIAL SEAL THIS DAY OF 211 NOTARY PUBLIC in and for the State of Washington, residing at Packet Pg. 82 7.2.a EXHIBIT A " ... .........._.._� PROPERTY: AN EASEMENT FOR UTILITY PURPOSES ACROSS THE FOLLOWING DESCRIBED PARCEL: THE WEST 331.60 FEET OF TRACT 29, SOLNER'S FIVE ACRE TRACTS, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 7 OF PLATS, PAGE 25, IN SNOHOMISH COUNTY, WASHINGTON; EXCEPT THAT PORTION OF TRACT 29 OF SAID SOLNER'S FIVE ACRE TRACTS LYING WESTERLY OF THE FOLLOWING DESCRIBED LINE; COMMENCING AT THE NORTHWEST CORNER OF SAID TRACT 29; THENCE EASTERLY ALONG THE NORTH BOUNDARY A DISTANCE OF 42.12 FEET TO THE BEGINNING OF THE LINE HEREIN DESCRIBED; THENCE SOUTHERLY TO A POINT THAT IS 35.44 FEET FROM THE SOUTHWEST CORNER OF SAID TRACT 29 AS MEASURED ALONG THE SOUTH BOUNDARY OF SAID TRACT 29, AND THE TERMINUS OF THE LINE HEREIN DESCRIBED; ALSO KNOWN AS PARCEL D OF CITY OF EDMONDS LOT LINE ADJUSTMENT FOR PUBLIC HOSPITAL DISTRICT NO, 2, RECORDED SEPTEMBER 15, 1999 UNDER RECORDING NO. 199909155005, IN SNOHOMISH COUNTY, WASHINGTON. EASEMENT AREA: SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: THE WEST 22.00 FEET OF THE NORTH 16.00 FEET OF THE SOUTH 118.00 FEET OF THE ABOVE DESCRIBED PARCEL; TOGETHER WITH: THE WEST 20.00 FEET OF THE ABOVE DESCRIBED PARCEL, EXCEPT THE SOUTH 118.00 FEET THEREOF; TOGETHER WITH: A 15.00 FOOT WIDE EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: COMMENCING AT THE SOUTHWEST CORNER OF THE ABOVE DESCRIBED PARCEL; THENCE SOUTH 87'56'18" EAST ALONG THE SOUTH LINE THEREOF, A DISTANCE OF 61.93 FEE7 TO THE TRUE POINT OF BEGINNING; THENCE NORTH 01°45'13" EAST A DISTANCE OF 173.71 FEET TO A POINT HEREIN DESIGNATED AS POINT "A"; THENCE CONTINUING NORTH 01 °45'13" EAST A DISTANCE OF 47.81 FEET; THENCE NORTH 20°44'38" WEST A DISTANCE OF 18.29 FEET; THENCE NORTH 01 °45'18" EAST A DISTANCE OF 62.98 FEET TO THE NORTH LINE OF SAID PARCEL AND THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE, WHICH POINT BEARS SOUTH 87'55'24" EAST A DISTANCE OF 53.29 FEET FROM THE NORTHWEST CORNER THEREOF TOGETHER WITH: A 15.00 FOOT WIDE EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "A"; THENCE NORTH 87°55'27" WEST A DISTANCE OF 29.27 FEET TO THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE. THE HEREIN DESCRIBED EASEMENT IS INTENDED TO FOLLOW ALONG THE EXISTING UTILITY LINES. THE SIDELINES OF SAID 15 FOOT WIDE EASEMENT BEING LENGTHENED OR SHORTENED SO AS TO BE CONTIGUOUS WITH THE BOUNDARY LINES OF SAID PARCEL, THE SOUTHERLY MARGIN OF 216TH STREET SW AND WITH EACH OTHER. .r a Packet Pg. 83 7.2.a EXHIBIT B (See attached) t d 2 t N 'a O Cn L O m E y fC W w O C d E d N Cu W r C d E t v R r .r Q Packet Pg. 84 7.2.a T552d'L 5129' 21677-1 ST. SW PARCEL A rr 20.00' 1� I �— Ii III1 UTILITY EASEME NT 15.00' PARCEL EASEMENT 1 I- EL 22.00'— 7320 216TH ST-SW 0 POINT OF BEGINNING !I S67'56'18"E B1.93' EASEMENT EXHIBIT EXHIBIT TABLE SEGMENT LENGTH I BEARING L1 1 173.71' N1'45'13"E L2 47.81' N1'45'13"E L3 18.29' N20'44'3B"W L4 62.98' Nl'45'18"E L5 29,27' N87'55'27"W T PACIFIC GEOMA TIC SER VICES, INC. + LAND SURVEYING & MAPPLNG SERVICES QUALITY SERVICE - CREATIVE SOLUTIONS 6608 216TH STREET SW, STE. 304 MOUNTLAKE TERRACE, WA 98043 PHONE:(425) 778-5620 FAX:(425) 775-2849 PGS 1NC WEB: www-P-Geol--com DRAWN BY I KDB CHECKED BY RGH SCALE 1" = 100' DATE 5/17/2017 JOB NUMBER 16-058-01 s1iEEr 1 OF 1 100 50 0 100 200 SCALE IN FEET .3-7/�•�7 1605B01-ESMTS-REVISED. DWG/UTILITY ESMT 4 a Packet Pg. 85 7.2.a Return Address: City Clerk City of Edmonds 121 - 5th Ave. N. Edmonds, WA 98020 Grantor(s): Public Hospital District No. 2, Snohomish County Grantee: City of Edmonds Abbreviated Legal: Solners 5 Acre Tracts 81k 000 D-00 - N 1/2 Of Trs 27 & 28 & S 1/2 Of Trs 25 & 26 Tgw Th Pin Of Vac IOth St Se (Formerly 216th St Sw Adj Thrto) & Tgw Th Pt of Tr 29 Sd Plat Ly Wly Of FdI - Cum At Nwcor Sd Tr 29 Th Ely Atg N Bdy 42.12Ft To Beg Of Ln Herein Dese Th Sly Tap 35.44Ft Fr Sw Cr Of Sd Tr 29 As pleas Alg S lady Sd Tr &'Perm Of Ln Herein Dese (Per City Edm Bla Rec Af No 195909155005) Assessor's Property Tax Parcel No.: 58070000250005 UTILITY EASEMENT Property Address: 21601 76'h Avenue W, Edmonds, WA 98026 IN CONSIDERATION of benefits to accrue to the grantors) herein, the undersigned, PUBLIC HOPSITAL DISTRICT 2 SNOHOMISH CO., dba Verdant Health Commission, a Municipal Corporation ("GRANTOR") hereby grant(t) to the CITY OF EDMONDS, a Municipal Corporation ("GRANTEE"), a permanent easement for the installation, construction, operation, maintenance, repair, reconstruction and/or replacement of a Utility improvement and necessary appurtenances, over, across, through, and below the following described property, and the further right, at GRANTEE's sole expense, to remove trees, bushes, undergrowth and other obstructions thereon interfering with the Iocation, construction, operation, maintenance, repair, reconstruction and/or replacement of said utilities and necessary appurtenances, together with the right of access to the easement at any time for the stated purposes. The easement hereby granted is located in the COUNTY OF SNOHOMISH, STATE OF WASHINGTON, and is more particularly described as the following property: Solners 5 Acre Tracts Blk 000 D-00 - N 1/2 Of Trs 27 & 28 & S 1/2 Of Trs 25 & 26 Tgw Th Pin Of Vac loth St Se (Fonnerly 216th St Sw Adj Thrto) & Tgw Th Pin Of Tr 29 Sd Plat Ly Wly Of Fdl - Corn At Nwcor Sd Tr 29 Th Ely All; N Bdy 42.12Ft'fo Beg Of Ln Heroin Desc Th Sly 'rap 35.44Ft Fr Sw Cr Of Sd Tr 29 As Meas Alg S Bdy Sd Tr & Term Of Ln Herein Desc (Per City Edm B1a Roc APNo 199909155005) The easement area is depicted in the drawing attached as Exhibit A GRANTEE shall, at GRANTEE'S sole expense, be responsible for the maintenance, repair, replacement, removal, relocation and reconstruction of the systems. Further, GRANTEE agrees to restore to substantially the original condition such improvements as are disturbed during the construction, maintenance, and repair of said utility or utilities, provided GRANTOR, their heirs, or assigns shall not construct any permanent structure over, upon, or within the permanent easement. GRANTEE agrees to indemnify, defend and hold GRANTOR harmless from any and all liability or damage, including attorneys' fees and costs, incurred or arising directly from GRANTEE's use, maintenance, repair, replacement, removal, relocation and reconstruction of and access to the systems, except those arising from any of GRANTOR'S acts, omissions or negligence. GRANTOR expressly reserves all rights not inconsistent with those granted to GRANTEE herein. Each party shall reasonably cooperate with the other in the performance of their obligations stated herein and to affect the purposes of this Agreement DATED THIS (J-t DAY OF L 20_ Grantor: Robin Fenn, V rdant Health Commission Consented by: Provi dence St. )oseph Health Packet Pg. 86 7.2.a Accepted by the City Council dated day of _ ,20 CITY OF EDMONDS By David O. Earling, Mayor STATE OF WASHINGTON) )ss COUNTY OF SNOHOMISH) ATTEST/AUTHENTICATED: Scott Passey, City Clerk APPROVED AS TO FORM: Office of the City Attorney On this day personally appeared before me to me ]mown to be the individual(s) described in and who executed the within and foregoing instrument and acknowledged that they signed the same as their free and voluntary act and deed, for the uses and purposes therein mentioned. UNDER MY HAND AND OFFICIAL SEAL THIS DAY OF , 20. NOTARY PUBLIC in and for the State of Washington, residing at Packet Pg. 87 7.2.a EXHIBIT A UTILITY EASEMENT LM& QE§oIKIQN A 15.00 FOOT WIDE EASEMENT FOR UTILITY PURPOSES ACROSS THE FOLLOWING DESCRIBED PARCEL: THE NORTH HALF OF TRACTS 27 AND 28, AND THE SOUTH HALF OF TRACTS 25 AND 26, SOLNER'S FIVE ACRE TRACTS, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 7 OF PLATS, PAGE 25, IN SNOHOMISH COUNTY, WASHINGTON; TOGETHER WITH THAT PORTION OF VACATED 10TH STREET SOUTHEAST (FORMERLY 216TH STREET SOUTHWEST), ADJACENT THERETO; TOGETHER WITH THAT PORTION OF TRACT 29 OF SAID SOLNER'S FIVE ACRE TRACTS LYING WESTERLY OF THE FOLLOWING DESCRIBED LINE; COMMENCING AT THE NORTHWEST CORNER OF SAID TRACT 29; THENCE EASTERLY ALONG THE NORTH BOUNDARY A DISTANCE OF 42.12 FEET TO THE BEGINNING OF THE LINE HEREIN DESCRIBED; THENCE SOUTHERLY TO A POINT THAT IS 35,44 FEET FROM THE SOUTHWEST CORNER OF SAID TRACT 29 AS MEASURED ALONG THE SOUTH BOUNDARY OF SAID TRACT 29, AND THE TERMINUS OF THE LINE HEREIN DESCRIBED, AS DESCRIBED IN LOT LINE ADJUSTMENT RECORDED SEPTEMBER 15, 1999 UNDER RECORDING NO. 199909155005. SAID EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: COMMENCING AT THE SOUTHWEST CORNER OF THE ABOVE DESCRIBED PARCEL; THENCE NORTH 00°35'27" EAST ALONG THE WEST LINE THEREOF, A DISTANCE OF 263.77 FEET TO THE TRUE POINT OF BEGINNING; THENCE, LEAVING SAID WEST LINE, SOUTH 60-13-48- EAST A DISTANCE OF 82.96 FEET; THENCE SOUTH 53°47'47" EAST A DISTANCE OF 82.85 FEET; THENCE SOUTH 36°15'38" EAST A DISTANCE OF 131.27 FEET; THENCE NORTH 83°33'14" EAST A DISTANCE OF 168.34 FEET; THENCE NORTH 20°49'44" EAST A DISTANCE OF 34,62 FEET TO A POINT HEREIN DESIGNATED AS POINT "A' THENCE NORTH 01 °'13'38" EAST A DISTANCE OF 7_45 FEET TO THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE: TOGETHER W ITH: A 10.00 FOOT WIDE EASEMENT BEING 5.00 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "A" THENCE SOUTH 8B°27'13" EAST A DISTANCE OF 92.50 FEET TO A POINT HEREIN DESIGNATED AS POINT "B", AND THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE; TOGETHER WITH: A 15.00 FOOT WIDE EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "B" THENCE SOUTH 88°45'49" EAST A DISTANCE OF 15.00 FEET TO A POINT HEREIN DESIGNATED AS POINT "C", AND THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE; TOGETHER WITH: A 10.00 FOOT WIDE EASEMENT BEING 5.00 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "C"; THENCE SOUTH 88°45'49" EAST A DISTANCE OF 145.57 FEET TO A POINT HEREIN DESIGNATED AS POINT "D", AND THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE; Y:\PBOJECrS/1605801/LEGALS/UTILr Y ESMT 5.d.c Q Packet Pg. 88 7.2.a TOGETHER WITH: A 15.00 FOOT WIDE EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "D"; THENCE SOUTH 88"45'49" EAST A DISTANCE OF 37.16 FEET TO THE EAST LINE OF THE ABOVE DESCRIBED PARCEL AND THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE, WHICH POINT BEARS NORTH 02"03'51" EAST A DISTANCE OF 121.99 FEET FROM THE MOST EASTERLY SOUTHEAST CORNER THEREOF. THE HEREIN DESCRIBED EASEMENT IS INTENDED TO FOLLOW ALONG THE EXISTING UTILITY LINES. THE SIDELINES OF SAID EASEMENT BEING LENGTHENED OR SHORTENED SO AS TO BE CONTIGUOUS WITH THE BOUNDARY LINES OF SAID PARCEL AND WITH EACH OTHER. -/7 r� Y:\PROJECTS/1605801/LEGALS/UTILITY ESMT 5,d- Q Packet Pg. 89 7.2.a OF SwEom � NING HOSRrAL '11EG 56D'13'48"E PAi 82.96' 3 ! UTILITY \ EASEMENT \ ' \ S88'27'13'E 553Y7'47� \ e2 BB' 82.5R' nI ; L2 131.2T � C c Nor'33,14 E:r 188.34' DRAWN BY I KDB PACIFIC GEOMATIC SERVICES, INC. CHECKED BY RGH LAND SURVEYING & MAPPING SERVICES SCALE ill= 100, QUALITY SERVICE - CREATIVE SOLUTIONS 6608 216TH STREET SW, STE. 304 DATE 5/17/2017 MOUNTLAKE TERRACE, WA 98043 JOB NUMBED 16-058-01 PHOME:1425) 775�5620 FAX:(425) 775-2649 PGS INC WEB: w .PBLGool...— 1 DF SHEET s-O -/ 7 _ 216rH sr. sw 100 50 0 100 200 SCALE IN FEET EXHIBIT TABLE SEGMENT LENGTH BEARING L1 34.62' N20'49'44"E L2 7,45' NI'13'38"E L3 15.00' S88'45'49"E L4 37,16' S88'45'49'E ESMT 5 a Packet Pg. 90 7.2.a Return Address: City Clerk City of Edmonds 121 - 5th Ave. N. Edmonds, WA 98020 Grantor(s): Public Hospital District No. 2, Snohomish County Grantee: City of Edmonds Abbreviated Legal: Solners 5 Acre Tracts Blk 000 D-00 - N 1/2 Of Trs 27 & 28 & S 1/2 Of Trs 25 & 26 Tgw Th Ptn Of Vac loth St Se (Formerly 216th St Sw Adj Thrto) & Tgw Th Ptn Of Tr 29 Sd Plat Ly Wly Of Fdl - Com At Nwcor Sd Tr 29 Th Ely Alg N Bdy 42.12Ft To Beg Of Ln Herein Desc Th Sly Tap 35.44Ft Fr Sw Cr Of Sd Tr 29 As Meas All; S Bdy Sd Tr & Term Of Ln Herein Desc (Per City Edm Bla Rec Af No 199909155005) Assessor's Property Tax Parcel No.: 005807000002500 UTILITY EASEMENT Property Address: 21601 76rh Ave W, Edmonds, WA 98026 IN CONSIDERATION of benefits to accrue to the grantor(s) herein, the undersigned, PUBLIC HOPSITAL DISTRICT 2 SNOHOMISH CO., dba Verdant Health Commission, a Municipal Corporation ("GRANTOR") hereby grant(s) to the CITY OF EDMONDS, a Municipal Corporation ("GRANTEE"), a permanent easement for the installation, construction, operation, maintenance, repair, reconstruction and/or replacement of a Utility improvement and necessary appurtenances, over, across, through, and below the following described property, and the further right, at GRANTEE's sole expense, to remove trees, bushes, undergrowth and other obstructions thereon interfering with the location, construction, operation, maintenance, repair, reconstruction and/or replacement of said utilities and necessary appurtenances, together with the right of access to the easement at any time for the stated purposes. The easement hereby granted is located in the COUNTY OF SNOHOMISH, STATE OF WASHINGTON, and is more particularly described as the following property: Solners 5 Acre Tracts Blk 000 D-00 - N 112 Of Trs 27 & 28 & S 1/2 Of Trs 26 & 26 Tgw Th Ptn Of Vac 10th St Se (Formerly 216th St Sw Adj Thrto) & Tgw Th Ptn Of Tr 29 Sd Plat Ly Wly Of Fdl - Com At Nwcor Sd Tr 29 Th Ely Alg N Bdy 42.12Ft To Beg Of Ln Herein Desc Th Sly Tap 35.44Ft Fr Sw Cr Of Sd Tr 29 As Meas Alg S Bdy Sd Tr & Term Of Ln Herein Desc (Per City Edm Bla Ree Af No 199909165005) The easement area is depicted in the drawing attached as Exhibit A. GRANTEE shall, at GRANTEE'S sole expense, be responsible for the maintenance, repair, replacement, removal, relocation and reconstruction of the systems. Further, GRANTEE agrees to restore to substantially the original condition such improvements as are disturbed during the construction, maintenance, and repair of said utility or utilities, provided GRANTOR, their heirs, or assigns shall not construct any permanent structure over, upon, or within the permanent easement. GRANTEE agrees to indemnify, defend and hold GRANTOR harmless from any and all liability or damage, including attorneys' fees and costs, incurred or arising directly from GRANTEE's use, maintenance, repair, replacement, removal, relocation and reconstruction of and access to the systems, except those arising from any of GRANTOR'S acts, omissions or negligence. GRANTOR expressly reserves all rights not inconsistent with those granted to GRANTEE herein. Each party shall reasonably cooperate with the other in the performance of their obligations stated herein and to affect the purposes of this Agreement DATED THIS 1� DAY OF 'L , TF ( 20 r Grantor: Min Fenn, Verd i Health Commission Consented by: Providence t. Joseph Health Packet Pg. 91 7.2.a Accepted by the City Council dated day of , 20 CITY OF EDMONDS By David O. Earling, Mayor STATE OF WASHINGTON) ) ss COUNTY OF SNOHOMISH) ATTEST/AUTHENTICATED: Scott Passey, City Clerk APPROVED AS TO FORM: Office of the City Attorney On this day personally appeared before me to me known to be the individual(s) described in and who executed the within and foregoing instrument and acknowledged that they signed the same as their free and voluntary act and deed, for the uses and purposes therein mentioned. UNDER MY HAND AND OFFICIAL SEAL THIS DAY OF .20 NOTARY PUBLIC in and for the State of Washington, residing at Packet Pg. 92 7.2.a EXHIBIT A ITY EASEMENT LEGAL DESCRIPT A 15.00 FOOT WIDE EASEMENT FOR UTILITY PURPOSES ACROSS THE FOLLOWING DESCRIBED PARCEL: THE NORTH HALF OF TRACTS 27 AND 28, AND THE SOUTH HALF OF TRACTS 25 AND 26, SOLNER'S FIVE ACRE TRACTS, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 7 OF PLATS, PAGE 25, IN SNOHOMISH COUNTY, WASHINGTON: TOGETHER WITH THAT PORTION OF VACATED 10TH STREET SOUTHEAST (FORMERLY 216TH STREET SOUTHWEST), ADJACENT THERETO; TOGETHER WITH THAT PORTION OF TRACT 29 OF SAID SOLNER'S FIVE ACRE TRACTS LYING WESTERLY OF THE FOLLOWING DESCRIBED LINE; COMMENCING AT THE NORTHWEST CORNER OF SAID TRACT 29; THENCE EASTERLY ALONG THE NORTH BOUNDARY A DISTANCE OF 42.12 FEET TO THE BEGINNING OF THE LINE HEREIN DESCRIBED; THENCE SOUTHERLY TO A POINT THAT IS 35.44 FEET FROM THE SOUTHWEST CORNER OF SAID TRACT 29 AS MEASURED ALONG THE SOUTH BOUNDARY OF SAID TRACT 29, AND THE TERMINUS OF THE LINE HEREIN DESCRIBED, AS DESCRIBED IN LOT LINE ADJUSTMENT RECORDED SEPTEMBER 15, 1999 UNDER RECORDING NO. 199909155005, t SAID EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED }' CENTERLINE: 19 d COMMENCING AT THE SOUTHWEST CORNER OF THE ABOVE DESCRIBED PARCEL; _ THENCE NORTH 00'35'27" EAST ALONG THE WEST LINE THEREOF, A DISTANCE OF 58.32 FEET t TO THE TRUE POINT OF BEGINNING; N THENCE, LEAVING SAID WEST LINE, SOUTH 89°24'37" EAST A DISTANCE OF 1.35 FEET; 'a THENCE NORTH 78°22'22" EAST A DISTANCE OF 136.69 FEET; THENCE NORTH 80°23'59" EAST A DISTANCE OF 81.96 FEET; 3 THENCE NORTH 78°22'22" EAST A DISTANCE OF 57.57 FEET TO A POINT HEREIN DESIGNATED Cl) AS POINT "A"; i THENCE CONTINUING NORTH 78°22'22" EAST A DISTANCE OF 53.05 FEET; O THENCE SOUTH 54'15'48' EAST A DISTANCE OF 19,60; `~ THENCE SOUTH 07173'48" EAST A DISTANCE OF 9.04 FEET TO A POINT HEREIN DESIGNATED AS W POINT "B'; O THENCE CONTINUING SOUTH 07'03'48" EAST A DISTANCE OF 15.37 FEET; d THENCE SOUTH 16303'48" EAST A DISTANCE OF 52.80 FEET; E THENCE SOUTH 40 M'48" EAST A DISTANCE OF 47.01 FEET; y THENCE SOUTH 86 "34'14" EAST A DISTANCE OF 10.00 FEET TO A POINT HEREIN DESIGNATED y AS POINT "C"; R THENCE CONTINUING SOUTH 86°34'14" EAST A DISTANCE OF 109.58 FEET TO A POINT HEREIN W DESIGNATED AS POINT "D"; THENCE CONTINUING SOUTH 86°34'14" EAST A DISTANCE OF 23.03 FEET; }' THENCE NORTH 80`09'09" EAST A DISTANCE OF 46.74 FEET; THENCE NORTH 89°24'25" EAST A DISTANCE OF 42.61 FEET; D THENCE SOUTH 88"08'52" EAST A DISTANCE OF 5.80 FEET TO A POINT HEREIN DESIGNATED AS POINT "E" N THENCE CONTINUING SOUTH 88'08'52" EAST A DISTANCE OF 17.12 FEET TO A POINT HEREIN V DESIGNATED AS POINT "F"; O THENCE CONTINUING SOUTH 88`108'52" EAST A DISTANCE OF 7.62 FEET; THENCE SOUTH 43 46'53" EAST A DISTANCE OF 6.56 FEET; THENCE SOUTH 00°41'46" WEST A DISTANCE OF 2.49 FEET TO THE SOUTHERLY LINE OF THE ABOVE DESCRIBED PARCEL, AND THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE, y SAID POINT BEARS NORTH B7`56'18" WEST A DISTANCE OF 29.44 FEET FROM THE MOST E EASTERLY SOUTHEAST CORNER THEREOF; d to TOGETHER WITH: m A 15.00 FOOT WIDE EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING LLJ DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "A" THENCE NORTH 12'02'19" WEST A DISTANCE OF 23.14 FEET TO A POINT HEREIN DESIGNATED y AS POINT "G", AND THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE; E t TOGETHER WITH: V t9 V:\PROJECTS/1605801/LEGAIS/UTILITY EBMT 3.doc �+ Q Packet Pg. 93 7.2.a A 21.50 FOOT WIDE EASEMENT BEING 10.75 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "G" THENCE NORTH 77°57'48" EAST A DISTANCE OF 22.55 FEET TO THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE. TOGETHER WITH: A 15.00 FOOT WIDE EASEMENT BEING 7.50 FEET ON EACH SIDE OFTHE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "B"; THENCE SOUTH 82156'12" WEST A DISTANCE OF 18.37 FEET TO THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE. TOGETHER WITH: A 15.00 FOOT WIDE EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "C"; THENCE SOUTH 03 °25'46" WEST A DISTANCE OF 13.48 FEET TO THE SOUTH LINE OF THE ABOVE DESCRIBED PARCEL AND THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE. TOGETHER WITH: A 15.00 FOOT WIDE EASEMENT BEING 7,50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "D"; THENCE NORTH 01 °25'46" EAST A DISTANCE OF 28.94 FEET TO THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE TOGETHER WITH: A 15.00 FOOT WIDE EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "E"; THENCE SOUTH 00`05'45" W EST A DISTANCE OF 16.78 FEET TO THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE. TOGETHER WITH: A 15.00 FOOT WIDE EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "F"; THENCE NORTH 00°54'47" EAST A DISTANCE OF 101.86 FEET; THENCE SOUTH 88°45'49" EAST A DISTANCE OF 43.98 FEET TO THE EAST LINE OF THE ABOVE DESCRIBED PARCEL AND TERMINUS OF THE HEREIN DESCRIBED CENTERLINE, WHICH POINT BEARS NORTH 02*07'15" EAST A DISTANCE OF 109.49 FEET FROM THE MOST EASTERLY SOUTHEAST CORNER THEREOF. TOGETHER WITH: THE EAST 11.50 FEET OF THE SOUTH 15.00 FEET OF THE ABOVE DESCRIBED PARCEL THE HEREIN DESCRIBED EASEMENT IS INTENDED TO FOLLOW ALONG THE EXISTING UTILITY LINES. THE SIDELINES OF SAID EASEMENT BEING LENGTHENED OR SHORTENED SO AS TO BE CONTIGUOUS WITH THE BOUNDARY LINES OF SAID PARCEL AND WITH EACH OTHER. 3~/A•/7 Y:\PRO1E(.TS/1605801/LEGALS/UTILITY ESMT 3.doc Q Packet Pg. 94 7.2.a EASEMENT EXHIBIT I SWEDISH HOSMAL I PARCEL L A Q bll o POINT OF L17 I BEGINNING L3 N7H'22'22"E Ll `1 _ L4 UTILITY EASEMENT L7 L2 LL110 L7 �� Y' NHO'23'59'E �'[1\ �7'E g 91.88' S4D'33'A8`E 15.00 S86'34'14"E L 109.58' I -g L201'ti- I Lo L10 11 ` DRAWN BY KDB PACIFIC GEOMATIC SERVICES, INC. CHECKED BY RGH LAND SURVEYING & MAPPING SERVI(IiS SCALE V = 100, QUALITY SERVICE -CREATING SOLUTIONS _ 6608 216TH STREET SW, STE.304 DATE 5/17/2017 PGS MOUNTLAKE TERRACE, WA 98043 PPIONE:[A20) 7?6•%20 FAX:(425) 775-2849 INC WER www.PacGuolnc.com JOB NUMBER 16-058-01 SHEET OF 2 L23 — — L 2167711ST. SW 9120 "� 5'HU7'HH"1H"14 29.44' 100 50 0 1a0 zoo SCALE IN FEET ESMT 3 a Packet Pg. 95 7.2.E EASEMENT EXHIBIT EXHIBIT TABLE SEGMENT LENGTH BEARING Ll 1.35' S8924'37'E L2 57.57' N78'22'22'E L3 53.05' N7822'22E L4 19.60' S54'15'48'E LS 9.04' S7'03'48"E L6 15.37' S7'03'48'E L7 52.80' S16103'48"E L8 10.00' S86304'E L9 23.03' S8634'14"E L10 46.74' N80'09'09'E Lll 42.61' 1 N89'24'25'E L12 5.50' 1 S88'08'52"E 1605801—ESM TS— REVISED. DWG/ESMT 3 SHT 2 EXHIBIT TABLE SEGMENT LENGTH BEARING L13 17.12' SBB'OB'52"E L14 7.62' S138'08'52"E L15 6.56' S43'46'53"E L15 23.14' N12'02'19"W L17 2255' N77'57'48"E L18 18.37' 582'56'12"W L19 13.48' S325'46"W L20 28.94' N1'25'46"E L21 2.49' SO'41'46'W 01' 101.86' ' NO'S4'47"E O' i 8' S 4 49"E16.78' SO'05'45"W DWN BY: KDB CHK. PACIFIC GEOMA TIC SERVICES, INC. SCALE: 1" = 100' KGH LAND SURV6YNG & V1APPING SERVICES QUALITY SERVICE- CREATIVE SOLUTIONS DATE: 5/16/2017 660E 216TH STREET SW, STE. 304 JOB NUMBER SHEET MOUNTLAKE TERRACE, WA 98043 PHONE:(425) 776-5620 FAX:(425) 7752649 16-058-01 2 OF 2 PGS !NC WEB: www.PacGeolnc com Packet Pg. 96 7.2.a Return Address: City Clerk City of Edmonds 121 - 5th Ave. N. Edmonds, WA 98020 Grantor(s): Public Hospital District No. 2, Snohomish County Grantee: City of Edmonds Abbreviated Legal: Solners 5 Acre Tracts Blk 000- D-01 Tr 28 E 126.04 ft of S V. Less S 30ft Rd & Tgws 30 ft per T/W Vac Per City Edmonds Ordinance No 2845 Rec Af No 9107220020 Assessor's Property Tax Parcel No.: 005807000002801 UTILITY EASEMENT Property Address: 21607 76th Ave W, Edmonds, WA 98026 IN CONSIDERATION of benefits to accrue to the grantor(s) herein, the undersigned, PUBLIC HOPS1TAL DISTRICT 2 SNOHOMISH CO., dba Verdant Health Commission, a Municipal Corporation ("GRANTOR') hereby grant(s) to the CITY OF EDMONDS, a Municipal Corporation (" GRANTED"), a permanent easement for the installation, construction, operation, maintenance, repair, reconstruction and/or replacement of a Utility improvement and necessary appurtenances, over, across, through, and below the following described property, and the further right, at GRANTEE's sole expense, to remove trees, bushes, undergrowth and other obstructions thereon interfering with the location, construction, operation, maintenance, repair, reconstruction and/or replacement of said utilities and necessary appurtenances, together with the right or access to the easement at any time for the stated purposes. The easement hereby granted is located in the COUNTY OF SNOHOMISH, STATE OF WASHINGTON, and is more particularly described as the following property: Section 29 Township 27 Range 04 Quarter NW SOLNERS 5 ACRE TRACTS BLK 000 D-01 - TR 28 E 126.04 ft or South 1/2 LESS SOUTH 30 FT RD & TGWS 30 FT PER R/W VAC PER CITY OF EDMONDS ORDINANCE NO 2845 REC AF NO 9107220020 The easement area is depicted in the drawing attached as Exhibit A. GRANTEE shall, at GRANTEE'S sole expense, be responsible For the maintenance, repair, replacement, removal, relocation and reconstruction of the systems. Further, GRANTEE agrees to restore to substantially the original condition such improvements as are disturbed during the construction, maintenance, and repair of said utility at utilities, provided GRANTOR, their heirs, or assigns shall not construct any permanent structure over, upon, or within the permanent easement. GRANTEE agrees to indemnify, defend and hold GRANTOR harmless from any and all liability or damage, including attorneys' fees and costs, incurred or arising directly from GRANTEE's use, maintenance, repair, replacement, removal, relocation and reconstruction of and access to the systems, except those arising from any of GRANTOR'S acts, omissions or negligence. GRANTOR expressly reserves all rights not inconsistent with those granted to GRANTEE herein. Each party shall reasonably cooperate with the other in the performance of their obligations stated herein and to affect the purposes of this Agreement DATED THIS 0'T— DAY OF 1 Grantor:Robin Fenn ' Consented by: ///III Provi once S( Joseph Health Accepted by the City Council dated day of .20 Packet Pg. 97 7.2.a CITY OF EDMONDS By David O. Earling, Mayor STATE OF WASHINGTON) ) ss COUNTY OF SNOHOMISH) ATTEST/AUTHENTICATED: Scott Passey, City Clerk APPROVED AS TO FORM: Office of the City Attorney On this day personally apl=rsd before me to me known To he the individual(s) described in and who. executed the within and foregoing instrument and acknowledged that They signed the same as their free and voluntary act and deed, for the Uses and purposes therein mentioned. UNDER MY HAND AND OFFICIAL SEAL THIS DAY OF , 20 NOTARY PUBLIC in and for the State of Washington, residing at .r a Packet Pg. 98 7.2.a EXHIBIT A UTILITY EASEMENT LEGAL DESCRIPTION A 15.00 FOOT WIDE EASEMENT FOR UTILITY PURPOSES ACROSS THE FOLLOWING DESCRIBED PARCEL: THE EAST 126.04 FEET OF THE SOUTH HALF OF TRACT 28, SOLNER'S FIVE ACRE TRACTS, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 7 OF PLATS, PAGE 25, IN SNOHOMISH COUNTY, WASHINGTON; TOGETHER WITH VACATED 218TH STREET. SAID EASEMENT BEING DESCRIBED AS FOLLOWS: THE EAST 11.50 FEET OF THE ABOVE DESCRIBED PARCEL. THE HEREIN DESCRIBED EASEMENT IS INTENDED TO FOLLOW ALONG THE EXISTING SANITARY SEWER LINES. .5-4 -/7 r� Y:\PROJEQS\1605801\LEGALS\UTILITY ESMT 2.docz Q Packet Pg. 99 7.2.a EASEMENT EXHIBIT UTILITY I 1 EASEMENT 100 100 50 0 100 200 PARCEL i PAFKM (IARACE SCALE IN FEET C PARCEL I D PARCEL e I 1 1 11.56 �- yY kv x �shfA DRAWN BY KDB PACIFIC GEOMA TIC SERVICES, INC. CHECKED BY RGH '" a LAND SIJRVHYING & MAPPING SERVICES QUALITY SERVICE- CREATIVE SOLUTIONS SCALE V = 100' 'poi, 416W 6608 216TH STREET SW, STE. 304 DATE 5/17/2017 1" I,it9 MOUNTLAKE TERRACE, WA 98043 JOB NUMBER 16-058-01 PHONE:(425) 776-5620 FAX:(425) 775-2649 -1� 'PIGS INC WEB: www.PacGeoinc.com 1 OF 1 SHEET 1605801—ESMTS—RENSED.DWG/UTILITY ESMT 2 a Packet Pg. 100 7.2.a Return Address: City Clerk City of Edmonds 121- 5th Ave. N. Edmonds, WA 98020 Grantor(s): Public Hospital District No. 2, Snohomish County Grantee: City of Edmonds Abbreviated Legal: Section 29 Township 27 Range 04 Quarter NW SOLNERS 5 ACRE TRACTS BLK 000 D-00 — TR LESS ST HWY TGW TH PTN VAC SPRUCE ST (AKA 72ND AVE) LY ADJ PER VOL 30 PG 165 OF COMM REC DATED APRIL 9, 1928 Assessor's Property Tax Parcel No.: 005807000003000 UTILITY EASEMENT Property Address: 21700 HWY 99, EDMONDS, WA 98026 IN CONSIDERATION of benefits to accrue to the grantor(s) herein, the undersigned, PUBLIC HOPSITAL DISTRICT 2 SNOHOMISH CO., dba Verdant Health Commission, a Municipal Corporation ("GRANTOR") hereby grant(s) to the CITY OF EDMONDS, a Municipal Corporation ("GRANTEE"), a permanent easement for the installation, construction, operation, maintenance, repair, reconstruction and/or replacement of a Utility improvement and necessary appurtenances, over, across, through, and below the following described property, and the further right, at GRANTEE's sole expense, to remove trees, bushes, undergrowth and other obstructions thereon interfering with the location, construction, operation, maintenance, repair, reconstruction and/or replacement of said utilities and necessary appurtenances, together with the right of access to the easement at any time for the stated purposes. The easement hereby granted is located in the COUNTY OF SNOHOMISH, STATE OF WASHINGTON, and is more particularly described as the following property: Section 29 Township 27 Range 04 Quarter NW SOLNERS 5 ACRE TRACTS BLK 000 D-00 - TR 30 LESS ST HWY TGW TH PTN VAC SPRUCE ST (AKA 72ND AVE) LY ADJ PER VOL 30 PG 165 OF COMM REC DATED APRIL 9, 1928 The easement area is depicted in the drawing attached as Exhibit A. GRANTEE shall, at GRANTEE'S sole expense, be responsible for the maintenance, repair, replacement, removal, relocation and reconstruction of the systems. Further, GRANTEE agrees to restore to substantially the original condition such improvements as are disturbed during the construction, maintenance, and repair of said utility or utilities, provided GRANTOR, their heirs, or assigns shall not construct any permanent structure over, upon, or within the permanent easement. GRANTEE agrees to indemnify, defend and hold GRANTOR harmless from any and all liability or damage, including attorneys' fees and costs, incurred or arising directly from GRANTEE's use, maintenance, repair, replacement, removal, relocation and reconstruction of and access to the systems, except those arising from any of GRANTOR'S acts, omissions or negligence. GRANTOR expressly reserves all rights not inconsistent with those granted to GRANTEE herein. Each party shall reasonably cooperate with the other in the performance of their obligations stated herein and to affect the purposes of this Agreement DATED THI5� DAY OF r 20�` ) Grantor: lkobin Fenn Consented by: mvsdence fit. Joseph Health Accepted by the City Council dated day of ,20 Packet Pg. 101 7.2.a CITY OF EDMONDS By David O. Earling, Mayor STATE OF WASHINGTON) ) ss COUNTY OF SNOHOMISH) ATTEST/AUTHENTICATED: Scott Passey, City Clerk APPROVED AS TO FORM: Office of the City Attorney On this day personally appeared before me to me known to be the individual(s) described in acid wito executed the within and roregaing instrument and acknowledged that they signed the same as their free and voluntary act and deed, for the uses and purposes therein mentioned. UNDER MY HAND AND OFFICIAL SEAL THIS DAY OF , Zp NOTARY PUBLIC in and for the State of Washington, residing at Packet Pg. 102 7.2.a EXHIBIT A ��YllSkri��YR!l�ill �xc7:l�I�];IIlYLi�.I A 15.00 FOOT WIDE EASEMENT FOR UTILITY PURPOSES ACROSS THE FOLLOWING DESCRIBED PARCEL: TRACT 30, SOLNER'S FIVE ACRE TRACTS, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 7 OF PLATS, PAGE 25, IN SNOHOMISH COUNTY, WASHINGTON; TOGETHER WITH THAT PORTION OF VACATED STREET LYING BETWEEN EAST BOUNDARY OF TRACT 30 AND WESTERLY LINE OF STATE ROAD NO. 1; EXCEPT STATE ROAD NO. 1, SAID EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: COMMENCING AT THE NORTHWEST CORNER OF THE ABOVE DESCRIBED PARCEL; THENCE SOUTH 87"56'18" EAST ALONG THE NORTH LINE THEREOF A DISTANCE OF 11.00 FEET TO A LINE WHICH IS 11.00 EAST OF AND PARALLEL WITH THE WEST LINE OF SAID PARCEL; THENCE SOUTH 00°41'46" WEST ALONG SAID PARALLEL LINE A DISTANCE OF 3$63 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 87°52'51" EAST A DISTANCE OF 85.78 FEET TO A POINT HEREIN DESIGNATED AS POINT "A"; THENCE CONTINUING SOUTH 87`52'51" EAST A DISTANCE OF 138"25 FEET; THENCE SOUTH 42°52'38" EAST A DISTANCE OF 33.42 FEET; THENCE SOUTH 02`04'19" WEST A DISTANCE OF 237.55 FEET; THENCE NORTH 87'06'12" WEST A DISTANCE OF 230.46 FEET TO A LINE WHICH IS 11.00 EAST OF AND PARALLEL WITH THE WEST LINE OF SAID PARCEL AND THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE; TOGETHER WITH: A 15.00 FOOT WIDE EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "A" THENCE NORTH 01 043'30" EAST A DISTANCE OF 32.71 FEET TO THE NORTH LINE OF THE ABOVE DESCRIBED PARCEL AND THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE, WHICH POINT BEARS SOUTH 87056'18" EAST A DISTANCE OF 97.37 FEET FROM THE NORTHWEST CORNER THEREOF. TOGETHER W ITH: AN EASEMENT FOR UTILITY PURPOSES MORE PARTICULARLY DESCRIBED AS FOLLOWS: THE WEST 22.00 FEET OF THE SOUTH 48.2 FEET OF THE ABOVE DESCRIBED PARCEL; TOGETHER WITH: THE WEST 11.00 FEET OF THE ABOVE DESCRIBED PARCEL. THE HEREIN DESCRIBED EASEMENT IS INTENDED TO FOLLOW ALONG THE EXISTING UTILITY LINES. THE SIDELINES OF SAID 15 FOOT WIDE EASEMENT BEING LENGTHENED OR SHORTENED SO AS TO BE CONTIGUOUS WITH THE BOUNDARY LINES OF SAID PARCEL AND WITH EACH OTHER. ,S-1P -/7 Y:\PROJECTS\1605901\LEGALS\UTILITY ESMT S.docx Q Packet Pg. 103 7.2.a EASEMENT EXHIBIT S87'56'16"E 7'S6'1>�"E pp{•4]'30"E 11.00'- - 97.37 Z71' s6.pD' S00'4V46"W 14 — 32.63' I — — 7}--33AX I POINT OF I ) BEGINNING I S87'S$'S1"E I I'^ 7.50' 9� S07'52'51"E, 140-25, 1 1 �Y U5.70' l 7.W 4- 21632 PARCEL �v I qq pE �11f—lsnv SR go D F l I I I GS Y I UTLITY EASEMENT I ' L502 04'19"W I I ! xa7,ss• .. I 1- 111 �%� 100 50 0 100 200 11,00 15.00' -- — if 1 9R99 1 — f I. SCALE IN FEET lae7ro6.12"w 230.46' Iit�D�. 11 DRAWN BY I KDB PACIFIC CEOMATIC SERVICES, INC. LAND SURVEYING & MAPPING SERVICES QUALITY SERVICE -CREATIVE, SOLUTIONS CHECKED BY RGH SCALE I" = 100' DATE 5/17/2017 660821 GTH STREET SW, STE. 304 JOB NUMBER 16-058-01 MOUNTLAKE TERRACE, WA 98043 PHONE:(425177MG20 FAX:(425)775.2049 PGS INC WrW wmv.PacGnalnc.com SHEET 1 OF I 1605801-ESMTS-REASED.DWG/UTILITY ESMT I a Packet Pg. 104 7.2.a Return Address: City Clerk City of Edmonds 121 - 5th Ave. N. Edmonds, WA 98020 Grantor(s): Public Hospital District No. 2, Snohomish County Grantee: City of Edmonds Abbreviated Legal: Solners 5 Acre Tracts Blk 000 D-00 - N 1/2 Of Trs 27 & 28 & S 1/2 Of Trs 25 & 26 Tgw Th Ptn Of Vac 10th St Se (Formerly 216th St Sw Adj Thrto) & Tgw Th Ptn Of Tr 29 Sd Plat Ly Wly Of Fdl - Corn At Nwcor Sd Tr 29 Th Ely All; N Bdy 42.12Ft To Beg Of Ln Herein Desc Th Sly Tap 35.44Ft Fr Sw Cr Of Sd Tr 29 As Meas Alg S Bdy Sd Tr & Term Of Ln Herein Desc (Per City Edm Bla Ree Af No 199909155005) Assessor's Property Tax Parcel No.: 58070000250005 UTILITY EASEMENT Property Address: 21601 76th Ave W, Edmonds, WA 98026 IN CONSIDERATION of benefits to accrue to the grantor(s) herein, the undersigned, PUBLIC HOPSITAL DISTRICT 2 SNOHOMISH CO., dba Verdant Health Commission, a Municipal Corporation ("GRANTOR") hereby grant(s) to the CITY OF EDMONDS, a Municipal Corporation ("GRANTEE"), a permanent easement for the installation, construction, operation, maintenance, repair, reconstruction and/or replacement of a Utility improvement and necessary appurtenances, over, across, through, and below the following described property, and the further right, at GRANTEE's sole expense, to remove trees, bushes, undergrowth and other obstructions thereon interfering with the location, construction, operation, maintenance, repair, reconstruction and/or replacement of said utilities and necessary appurtenances, together with the right of access to the easement at any time for the stated purposes. The easement hereby granted is located in the COUNTY OF SNOHOMISH, STATE OF WASHINGTON, and is more particularly described as the following property: Solners 5 Acre Tracts Blk 000 D-00 - N 1/2 Of Trs 27 & 28 & S 1/2 Of Trs 25 & 26 Tgw Th Ptn Of Vac 10th St Se (Formerly 216th St Sw Adj Thrto) & Tgw Th Ptn Of Tr 29 Sd Plat Ly Wly Of Fdl - Com At Nwcor Sd Tr 29 Th Ely Alg N Bdy 42.12Ft To Beg Of Ln Herein Desc Th Sly Tap 35.44Ft Fr Sw Cr Of Sd Tr 29 As Meas Alg S Bdy Sd Tr & Term Of Ln Herein Desc (Per City Edm Bla Rec AfNo 199909155005) The easement area is depicted in the drawing attached as Exhibit A GRANTEE shall, at GRANTEE'S sole expense, be responsible for the maintenance, repair, replacement, removal, relocation and reconstruction of the systems. Further, GRANTEE agrees to restore to substantially the original condition such improvements as are disturbed during the construction, maintenance, and repair of said utility or utilities, provided GRANTOR, their heirs, or assigns shall not construct any permanent structure over, upon, or within the permanent easement. GRANTEE agrees to indemnify, defend and hold GRANTOR harmless from any and all liability or damage, including attorneys' fees and costs, incurred or arising directly from GRANTEE's use, maintenance, repair, replacement, removal, relocation and reconstruction of and access to the systems, except those arising from any of GRANTOR'S acts, omissions or negligence. GRANTOR expressly reserves all rights not inconsistent with those granted to GRANTEE herein. Each party shall reasonably cooperate with the other in the performance of their obligations stated herein and to affect the purposes of this Agreement ll{{ DATED THIS DAY OF � I UA 20,1" Awzz�Granto Rabin Fenn, Ver ant Health Commission Consented by: . Providence . Joseph Health Packet Pg. 105 7.2.a Accepted by the City Council dated day of .20 CITY OF EDMONDS By David O. Earling, Mayor STATE OF WASHINGTON) ) ss COUNTY OF SNOHOMISH) ATTEST/AUTHENTICATED: Scott Passey, City Clerk APPROVED AS TO FORM: Office of the City Attorney On this day personally appeared before me to me known to be the individual(s) described in and who executed the within and foregoing instrument and acknowledged that they signed the same as their free and voluntary act and deed, for the uses and purposes therein mentioned. UNDER MY HAND AND OFFICIAL SEAL THIS DAY OF , 20 NOTARY PUBLIC in and for the State of Washington, residing at Packet Pg. 106 7.2.a EXHIBIT A UTILITY EASEMENT LEGAL DESCRIPTION A 15.00 FOOT WIDE EASEMENT FOR UTILITY PURPOSES ACROSS THE FOLLOWING DESCRIBED PARCEL: THE NORTH HALF OF TRACTS 27 AND 28, AND THE SOUTH HALF OF TRACTS 25 AND 26, SOLNER'S FIVE ACRE TRACTS, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 7 OF PLATS, PAGE 25, IN SNOHOMISH COUNTY, WASHINGTON; TOGETHER WITH THAT PORTION OF VACATED 10TH STREET SOUTHEAST (FORMERLY 216TH STREET SOUTHWEST), ADJACENT THERETO; TOGETHER WITH THAT PORTION OF TRACT 29 OF SAID SOLNER'S FIVE ACRE TRACTS LYING WESTERLY OF THE FOLLOWING DESCRIBED LINE; COMMENCING AT THE NORTHWEST CORNER OF SAID TRACT 29; THENCE EASTERLY ALONG THE NORTH BOUNDARY A DISTANCE OF 42.12 FEET TO THE BEGINNING OF THE LINE HEREIN DESCRIBED; THENCE SOUTHERLY TO A POINT THAT IS 35.44 FEET FROM THE SOUTHWEST CORNER OF SAID TRACT 29 AS MEASURED ALONG THE SOUTH BOUNDARY OF SAID TRACT 29, AND THE TERMINUS OF THE LINE HEREIN DESCRIBED, AS DESCRIBED IN LOT LINE ADJUSTMENT RECORDED SEPTEMBER 15, 1999 UNDER RECORDING NO. 199909155005. SAID EASEMENT BEING 7_50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: COMMENCING AT THE NORTHWEST CORNER OF SAID TRACT 29; THENCE NORTH 00'47'15" EAST ALONG THE EAST LINE OF THE ABOVE DESCRIBED PARCEL, A DISTANCE OF 33.05 FEET TO THE TRUE POINT OF BEGINNING; THENCE, LEAVING SAID EAST LINE, NORTH 89-14-02" WEST A DISTANCE OF 39.91 FEET; THENCE NORTH 44017'06" WEST A DISTANCE OF 20.16 FEET; THENCE NORTH 00°29'08" EAST A DISTANCE OF 4.01 FEET TO A POINT HEREIN DESIGNATED AS POINT "A"; THENCE NORTH 0037'03" EAST A DISTANCE OF 66.88; THENCE NORTH 29`48'08" WEST A DISTANCE OF 14,62; THENCE NORTH 68016'52" WEST A DISTANCE OF 126.45 FEET; THENCE NORTH 21 °28'28" EAST A DISTANCE OF 6.25; THENCE NORTH 30o54'39" EAST A DISTANCE OF 44.80 FEET; THENCE NORTH 23'15'46" EAST A DISTANCE OF 13.34 FEET; THENCE NORTH 19031'20" EAST A DISTANCE OF 30.69 FEET; THENCE NORTH 67o31'14" WEST A DISTANCE OF 15.43 FEET TO THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE, TOGETHER WITH A 15.00 FOOT WIDE EASEMENT BEING 7.50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT SAID POINT "A"; THENCE NORTH 89 32'50" WEST A DISTANCE OF 14.17 FEET TO THE TERMINUS OF THE HEREIN DESCRIBED CENTERLINE. THE HEREIN DESCRIBED EASEMENT IS INTENDED TO FOLLOW ALONG THE EXISTING WATERLINE, THE SIDELINES OF SAID 15.00 FOOT WIDE EASEMENT BEING LENGTHENED OR SHORTENED SO AS TO BE CONTIGUOUS WITH THE BOUNDARY LINES OF SAID PARCEL AND WITH EACH OTHER. ,S-'76 -/7 Y:\PROJECTS/1605801/LEGAL5/UTILfTY E5MT 6,doc Q Packet Pg. 107 7.2.a HOAPITAL L12 7 Ig, pp. L11 1��L10 LB �= ` rL7 �7—L6 I-- L4 PARCEL A EASEMENT EXHIBIT 100 50 0 100 200 SCALE IN FEET — — J L NOO'47' -aaas' 216TH ST SW —,— —— _. DRAWN BY I DRAWN BY I KDB PACIFIC CEOMATIC SERVICES, INC CI ECKED BY RGH LAND SURVEYING & MAPPING SERVICES ,SCALE 1 n = 1001 QUALITY SERVICE- CREATIVE SOLUTIONS 6608 216TH STREET SW, STE.304 DATE 5/17/2017 MOUNTLAKE TERRACE, WA 98043 JOBNOMBER 16-058-01 PHONE:(425)778-5020 FAX:(425) 775-2649 PGS INC WEB:www,PacGeolnc.com I OF 1 SHEET EXHIBIT TABLE SEGMENT LENGTH BEARING L1 39.91' 1,18914'GOW L2 20.16' N44'17'06"W L3 4.01' NO'29'08"E L4 14,17' N89'32'50"W L5 66.88' NO'27'03"E L6 14.62' N29'48'08"W L7 126.45' NBB'1 0'52"W LB 6.25' N21'28'28"E L9 44.80' N30'54'39"E LIO 13.34' N23'15'48"E L11 30.69' N19'31'20"E L12 15.43' N67'31'14"W 1605801-ESMTS-REVISED.DWG/UTILITY ESMT 6 a Packet Pg. 108 7.2.b �7 UTILITY EASEMENT / � I I I 1 II II I _ 2NTh1 ST 5F SWEDISH � � — — — — — — — — — — - - MH Sr aw HOSPITAL TILT TY PAAC& T- 1 — EA EMENT A — — UTILITY I I I 3 I►_:\ ` EASEMENT ' I I UTILITY I ( EASEMENT I \) 21600 SR 99 Q A7M, PAApM EASEMENT P� — / I EASEME[T 7320 / r `+ST. SW UTILITY EASEMENTIL UTILITY — I EASEMENT I I 21632 PA fiM P� I _ i t PARKING I I SR 99 D I C I I GARAGE I I PTY � UTILEASEMEIN PAfiM � e III I j I I I I I I 21700 1 I I I SR 99 / - _ 1-----------.� I N 1 N Q Packet Pg. 109 7.3 City Council Agenda Item Meeting Date: 10/10/2017 Authorization for Mayor to approve recording of a public pedestrian easement along Edmonds Way adjacent to 10032 Edmonds Way (10min) Staff Lead: Rob English Department: Engineering Preparer: Katie MacCaul Background/History Staff Recommendation Forward this item to the consent agenda for approval at the October 17, 2017 City Council meeting. Narrative The City of Edmonds is currently reviewing a proposed development project, Westgate Village, which includes construction of a mixed use building at 10032 Edmonds Way. Edmonds Community Development Code Chapter 16.110 - Westgate Mixed -Use Zone, requires a total planting buffer and sidewalk width to be a minimum of 13-feet. In meeting this requirement, a portion of the sidewalk will be located on private property and therefore, a public pedestrian easement shall be provided to the City Attachments: Attachment 1 - Vicinity Map Attachment 2 - Legal Description for Pedestrian Easement Attachment 3 - Site Plan with Easement Attachments: Vicinity Map -Pedestrian Easement -Westgate Village 2017-10-04 Pedestrian Easement Legal 2017-10-04 Sidewalk Utility Esmt-with site Packet Pg. 110 n " City of Edmonds Vicinity Map Westgate Village {AyA 10022 -10030 1� \ 2 2 2302® 23027 ry 23 23103 231= 231 �� 23 y1711 "_• 23119 23117 WM I 23125 .. 1 1 0 2271 22 22 9826 227 P m JJ 22805 momL a� 4'126- 2281 s�06 � 97z7 S 47 _ LU 9801 Y � T------ --- EDMONDS WA ---- o J _ J 23014 2302 2 23024 , 9920 23 23028 2302ME 230 2 230M 23104 2 97= 71105 2311� jl.,:- 2W 23114 2:i1; � 23121 IF 23118 , 23119 P .9718 WIU- n ' - 9825� LL 23124 23127 L— ... 2312t 9� 1: 4, 514 0 188.08 376.2 Feet This map is a user generated static output from an Internet mapping site and is 1 reference only. Data layers that appear on this map may or may not be accural WGS 1984 Web Mercator_Auxiliary_Sphere current, or otherwise reliab © City of Edmonds THIS MAP IS NOT TO BE USED FOR DESIGN OR CONSTRUCTIC Legend Notes 10032 Edmonds Way Pedestrian Easement 7-7.3� LLI 4ourrtlek (a 4 Te��ace �L d a d d R CID d I Packet Pg. 111 7.3.b EASEMENT DESCRIPTION THAT PORTION OF LOT `C' WESTGATE VILLAGE BOUNDARY LINE ADJUSTMENT AS FILED UNDER RECORDING NO 200203075001 RECORDS OF SNOHOMISH COUNTY, WASHINGTON, SITUATED IN THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION 38, TOWNSHIP 27 NORTH, RANGE 3 EAST, W.M., SNOHOMISH COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE WESTERLY LINE OF SAID LOT WITH THE SOUTHERLY RIGHT OF WAY MARGIN OF EDMONDS WAY (SR 104) AND A NON -RADIAL INTERSECTION WITH AN ARC OF A CURVE CONCAVE TO THE NORTHEAST FROM WHICH ITS CENTER BEARS NORTH 47037'54" EAST, 640.00 FEET DISTANT; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE AND SAID MARGIN THROUGH A CENTRAL ANGLE OF 01007'54", A DISTANCE OF 12.64 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING SOUTHEASTERLY ALONG THE ARC OF SAID CURVE AND SAID MARGIN THROUGH A CENTRAL ANGLE OF 06023'07", A DISTANCE OF 71.32 FEET TO A POINT OF CUSP OF A CURVE CONCAVE TO THE NORTHEAST FROM WHICH ITS CENTER BEARS NORTH 46047'35" EAST, 439.26 FEET DISTANT; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE AND SAID MARGIN THROUGH A CENTRAL ANGLE OF 04025'21", A DISTANCE OF 33.90 FEET TO A POINT OF CUSP OF A CURVE CONCAVE TO THE NORTHEAST FROM WHICH ITS CENTER BEARS NORTH 37010'23" EAST, 643.50 FEET DISTANT; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 07059'04", A DISTANCE OF 89.67 FEET TO THE BEGINNING OF A COMPOUND CURVE CONCAVE TO THE NORTHEAST HAVING A RADIUS OF 30.00 FEET; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 18009'22", A DISTANCE OF 9.51 FEET; THENCE NORTH 26041' 12" WEST A DISTANCE OF 6.75 FEET TO THE POINT OF BEGINNING. CONTAINING 283 SQUARE FEET, MORE OR LESS. 2017.10.04 07:19:14-07'00' n ffDDAVID EVANS ANDASSOCIATES INC. 14432 SE Eastgate Way, Suite 400 Bellevue, WA 98007 425.519.6500 Packet Pg. 112 7.3.b \ N.T.S. / BLA 200303075001 A=1 *07'54 R=640.00 j L=12.64' N26'41'12"WJ 6.75' A=18'09'22" R=30.00' L=9.51' EASEMENT (283 SQ. FT. POINT OF BEGINNING rF. / po Rp a p0, / 00610700200600� r♦ � • �� r r♦ �� r♦ �� r r� r- r♦ r♦ , EASEMENT EXHIBIT DAV I D E VA N S A PORTION OF THE NE 1/4 OF THE NW 1/4 OF Q ANDASSOCIATES INC. SECTION 38 T.27N., R.03E., W.M. 415 - 118th Avenue SE Bellevue Washington 98005-3518 SNOHOMISH COUNTY, WASHINGTON I Phone: 425.519.6500 Packet Pg. 113 7.3.c EASEMENT— (283 SQ. FT.) C 1 1 171, L_ I 1 ♦I 0 EASEMENT EXHIBIT A PORTION OF THE NE 1/4 OF THE NW 1/4 OF SECTION 38 T.27N., R.03E., W.M. SNOHOMISH COUNTY, WASHINGTON DAVID EVANS Q ANDASSOCIATES mc. O 415 - 118th Avenue SE Bellevue Washington 98005-3518 Phone: 425.519.6500 Packet Pg. 114 7.4 City Council Agenda Item Meeting Date: 10/10/2017 Professional Services Agreement with MIG for the ADA Transition Plan (10min) Staff Lead: Rob English Department: Engineering Preparer: Katie MacCaul Background/History On October 4, 2016, Council approved the Professional Services Agreement with MIG for the ADA Transition Plan. Staff Recommendation Forward the item for a presentation and possible action to approve the document at a future City Council meeting. Narrative As a recipient of federal funds, the City is required to follow federal requirements related to the Americans with Disabilities Act (ADA). One of the requirements is to have a Transition Plan. A Transition Plan was completed back in the 1990's and MIG recently completed a new Plan, complying with all ADA requirements. The document addresses the legal requirements related to ADA compliance that the City has to meet on public facilities and within their programs. All 72 miles of public sidewalks and 23 traffic signals were evaluated and all the physical obstacles limiting their accessibility by people with disabilities were identified. Priority charts are identified in the Plan, showing the order in which upgrades to ADA curb ramps, pedestrian access routes, and pedestrian activated signals (APS) should take place based on location / type of existing barrier. These priorities can be modified to allow flexibility to accommodate for specific citizen requests, changes in City programs, and funding opportunities. The plan proposes a 15-year strategy for removing the various barriers with a proposed schedule and funding strategy. An ADA Coordinator within the City has been identified, whose responsibility is to implement this Plan. A Committee (consisting of 5 residents with various disabilities) was involved in the development and review of this plan. The draft document was made available for public review in September and only minor comments were received. Attachment Transition Plan Attachments: Draft Transition Plan Packet Pg. 115 7.4.a E D- CITY OF EDMONDS ADA SELF -EVALUATION & TRANSITION PLAN FOR THE RIGHT-OF-WAY PUBLIC REVIEW DRAFT Packet Pg. 116 7.4.a July 28, 2017 Prepared by: © m MIG, Inc. 815 SW 2nd Avenue, Suite 200 Portland, Oregon 97204 503.297.1005 www.migcom.com Q Packet Pg. 117 7.4.a Q Packet Pg. 118 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a Acknowledgements Many individuals were involved with the development of the ADA Transition Plan. City Leadership Dave Earling, Mayor Kristiana Johnson, City Council Position #1 Mike Nelson, City Council Position #2 Adrienne Fraley-Monillas, City Council Position #3 Diane Buckshnis, City Council Position #4 Dave Teitzel, City Council Position #5 Thomas Mesaros, City Council Position #6 Neil Tibbott, City Council Position #7 Department Staff Phil Williams, Public Works & Utilities Director Robert English, City Engineer Bertrand Hauss, Transportation Engineer/ADA Coordinator Alix Rackleff, Senior Construction Inspector David Rohde, GIs Analyst ADA Stakeholder Advisory Committee George Basioli Kaelyn Drummond Gene Gorden Linda Hood Maggie Mittelstaedt a Acknowledgements I Page i Packet Pg. 119 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way c c� IL c 0 r .N c L Q Q This page intentionally left blank. Public Review Draft — 7.28.2017 1 Page ii Packet Pg. 120 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way -able of Contents Acknowledgements........................................................................................................................................ i Introduction..................................................................................................................................................1 1.0 Legal Requirements................................................................................................................................3 1.1 Legislative Mandate......................................................................................................................3 1.2 Discrimination and Accessibility...................................................................................................3 1.3 Undue Burden...............................................................................................................................4 1.4 Safe Harbor Provisions..................................................................................................................4 1.5 Construction Tolerances............................................................................................................... 5 1.6 Maximum Extent Feasible.............................................................................................................6 1.7 ADA Self -Evaluation and Transition Plan Requirements...............................................................7 1.8 Public Involvement........................................................................................................................8 2.0 Self -Evaluation of Policies, Procedures, and Program Accessibility.......................................................9 2.1 Introduction..................................................................................................................................9 2.2 Programmatic Modifications........................................................................................................9 2.3 Self -Evaluation Findings and Recommended Actions...................................................................9 2.4 Policy and Program Review.........................................................................................................19 2.5 PROW City Standard Details.......................................................................................................23 3.0 ADA Transition Plan..............................................................................................................................25 3.1 Facility Evaluation Process..........................................................................................................25 3.2 Public Rights -of -Way Prioritization.............................................................................................25 3.3 Priorities for Barrier Removal.....................................................................................................26 3.4 Phasing Schedule........................................................................................................................33 3.5 Roadway Alterations and Maintenance: Triggers for Curb Ramp Barrier Removal ...................45 3.6 Strategies for Funding Barrier Removal......................................................................................45 4.0 ADA Policy and Complaint Procedure...................................................................................................47 4.1 Notice Under the Americans with Disabilities Act......................................................................47 4.2 City of Edmonds ADA Grievance Procedure under the ADA......................................................48 5.0 Definitions.............................................................................................................................................49 5.1 Auxiliary Aids and Services................................................................................................................49 5.2 Complaint..........................................................................................................................................49 5.3 Disability............................................................................................................................................49 5.4 Discrimination on the Basis of Disability...........................................................................................49 r a Table of Contents Page iii Packet Pg. 121 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 5.5 Having a Record of Impairment........................................................................................................50 5.6 Physical or Mental Impairments.......................................................................................................50 5.7 Qualified Individual with a Disability................................................................................................50 5.8 Reasonable Program Modifications..................................................................................................50 5.9 Regarded as Having a Disability........................................................................................................51 5.10 Substantial Limitations on Major Life Activities..............................................................................51 5.11 Undue Burden.................................................................................................................................51 6.0 Program Accessibility Guidelines, Standards and Resources................................................................53 6.1 Introduction................................................................................................................................53 6.2 Federal Accessibility Standards and Regulations........................................................................53 6.3 State of Washington Accessibility Standards and Regulations...................................................56 c� 6.4 Resources....................................................................................................................................57 a 0 r .N c L Q Q E L :i Q Public Review Draft — 7.28.2017 1 Page iv Packet Pg. 122 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Introduction An ADA Self -Evaluation & Transition Plan is a document that outlines how jurisdictions transition toward compliance with the Americans with Disabilities Act (ADA). This ADA Title II Self -Evaluation &Transition Plan for the Right -of -Way is being prepared to partially fulfill the requirements set forth in Title II of the ADA. The ADA states that a public entity must reasonably modify its policies, practices, or procedures to avoid discrimination against people with disabilities. This plan will assist the City of Edmonds to identify policy, program, and physical barriers to accessibility, and to develop barrier removal solutions that will facilitate the opportunity of access to all individuals within the City's public right-of-way. The document is organized as follows: Chapter 1— Legal Requirements: The legal requirements of the ADA Title II are summarized for all types of public facilities and programs. Chapter 2 — Self -Evaluation of Policies, Procedures, and Programs: The findings and recommendations contained in the self -evaluation of policies, procedures, and programs serves as a basis for the a implementation of specific improvements for providing access to Public Works programs as required by ro the ADA. rn c Chapter 3 — ADA Transition Plan: The transition plan phasing schedule included in this chapter is intended to provide a framework for the continuous improvement of public right-of-way facilities for p people with disabilities. Q Chapter 4 — ADA Policy and Complaint Procedure: This chapter provides the City's notice under the c a Americans with Disabilities Act, specifies the ADA grievance procedure and identifies the City's ADA c Coordinator. Chapter 5 — Definitions: Provides a summary of terms used within the ADA and their definitions. c Chapter 6 — Program Accessibility Guidelines, Standards and Resources: Provides a set of resources for o the City to utilize in providing programs to the public under Title II of the ADA. c as The document has been organized so that the City can easily update the plan to create a comprehensive E ADA Self -Evaluation and Transition Plan with information pertaining to all City departments and to include the City's buildings and park facilities. a Introduction Pagel Packet Pg. 123 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way c c� IL c 0 r .N c L Q Q This page intentionally left blank. Public Review Draft — 7.28.2017 1 Page 2 Packet Pg. 124 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a 1.0 Legal Requirements. 1.1 Legislative Mandate The American with Disabilities Act (ADA) is a comprehensive civil rights law for persons with disabilities in both employment and the provision of goods and services. The ADA states that its purpose is to provide a "clear and comprehensive national mandate for the elimination of discrimination against individuals with disabilities." Congress emphasized that the ADA seeks to dispel stereotypes and assumptions about disabilities and to ensure equality of opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The development of a Transition Plan is a requirement of the federal regulations implementing the Rehabilitation Act of 1973, which requires that all organizations receiving federal funds make their programs available without discrimination toward people with disabilities. The Act, which has become known as the "civil rights act" of persons with disabilities, states that: No otherwise qualified handicapped individual in the United States shall, solely by reason of handicap, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. (Section 504) Subsequent to the enactment of the Rehabilitation Act, Congress passed the Americans with Disabilities Act on July 26, 1990. Title II of the ADA covers programs, activities, and services of public entities. The Department of Justice's Title II regulation adopts the general prohibitions of discrimination established under Section 504 and incorporates specific prohibitions of discrimination for the ADA. Specifically, the City may not, either directly or through contractual arrangements, do any of the following': • Deny persons with disabilities the opportunity to participate as members of advisory boards and commissions. • Deny persons with disabilities the opportunity to participate in services, programs, or activities that are not separate or different from those offered others, even if the City offers permissibly separate or different activities • In determining the location of facilities, make selections that have the effect of excluding or discriminating against persons with disabilities. 1.2 Discrimination and Accessibility This section provides an overview of physical and programmatic accessibility and the basic methods of providing access. There are two kinds of accessibility: • Program accessibility; and • Physical accessibility Absence of discrimination requires that both types of accessibility be provided. Program accessibility includes physical accessibility, but also entails all the policies, practices, and procedures that permit people with disabilities to participate in programs and to access important information. Physical 1 Department of Justice, Title II Regulations Subpart B § 35.130 Q 1.0 Legal Requirements Page 3 Packet Pg. 125 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way accessibility requires that a facility be barrier -free. Barriers include any obstacles that prevent or restrict the entrance to or use of a facility. Program accessibility requires that individuals with disabilities be provided an equally effective opportunity to participate in or benefit from a public entity's programs and services. Program accessibility may be achieved by either structural or non-structural methods. Non- structural methods include acquisition or redesign of equipment, assignment of aides to beneficiaries, and provision of services at alternate sites. Programs offered by the City to the public must be accessible. Accessibility includes advertisement, orientation, eligibility, participation, testing or evaluation, physical access, provision of auxiliary aids, transportation, policies, and communication. The City may achieve program accessibility by a number of methods: • Structural methods such as altering an existing facility; • Acquisition or redesign of equipment; • Assignment of aides; and c c� • Providing services at alternate accessible sites. a It is required that when choosing a method of providing program access, the City will give priority to the c 0 one that results in the most integrated setting appropriate to encourage interaction among all users, 0 including individuals with disabilities. In compliance with the requirements of the ADA, the City must provide equality of opportunity. p Q 1.3 Undue Burden The City is not required to take any action that it can demonstrate would result in a fundamental alteration in the nature of its program or activity, would create a hazardous condition resulting in a direct threat to the participant or others, or would represent an undue financial and administrative burden. The determination that an undue burden would result must be based on an evaluation of all resources available for use in the City. For example, if a barrier removal action is judged unduly burdensome, the City must consider other options for providing access to the benefits and services of the program or activity by individuals with disabilities. 1.4 Safe Harbor Provisions The 2010 ADA regulations introduced the concept of "safe harbor", which allows facilities built prior to March 15, 2012 that comply with the 1991 ADA Standards to remain as -is until the structural feature is altered. For example, the 1991 Standards allowed a 54-inch maximum for a side reach range, and the 2010 Standard lowered the side reach range to 48-inch maximum. Items positioned at the 54-inch height would fall under safe harbor if built before March 15th 20122 until the time of an alteration. 2 § 35.150 Existing facilities (b)(2)(i) Safe harbor. Elements that have not been altered in existing facilities on or after March 15, 2012, and that comply with the corresponding technical and scoping specifications for those elements in either the 1991 Standards or in the Uniform Federal Accessibility Standards (UFAS), Appendix A to 41 CFR part 101-19.6 (July 1, 2002 ed.), 49 FIR 31528, app. A (Aug. 7, 1984) are not required to be modified in order to comply with the requirements set forth in the 2010 Standards. Public Review Draft — 7.28.2017 1 Page 4 Packet Pg. 126 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a This safe harbor is not a blanket exemption for facilities. If a public entity undertakes an alteration to a primary function area, only the required elements of a path of travel to that area that already comply with the 1991 Standards are subject to the safe harbor. If a public entity undertakes an alteration to a primary function area and the required elements of a path of travel to the altered area do not comply with the 1991 Standards, then the public entity must bring those elements into compliance with the 2010 Standards3. In addition to the exceptions, Title II Regulations specify structural elements not previously included in the 1991 ADA Standards that do not fall under the safe harbor provision: § 35.150(b)(2)(ii) The safe harbor provided in § 35.150(b)(2)(i) does not apply to those elements in existing facilities that are subject to supplemental requirements (i.e., elements for which there are neither technical nor scoping specifications in the 1991 Standards). Elements in the 2010 Standards not eligible for the element -by -element safe harbor are identified as follows — (A) Residential facilities dwelling units, sections 233 and 809. (8) Amusement rides, sections 234 and 1002; 206.2.9, 216.12. (C) Recreational boating facilities, sections 235 and 1003; 206.2.10. (D) Exercise machines and equipment, sections 236 and 1004; 206.2.13. (E) Fishing piers and platforms, sections 237 and 1005; 206.2.14. (F) Golf facilities, sections 238 and 1006; 206.2.15. (G) Miniature golf facilities, sections 239 and 1007; 206.2.16. (H) Play areas, sections 240 and 1008; 206.2.17. (1) Saunas and steam rooms, sections 241 and 612. (J) Swimming pools, wading pools, and spas, sections 242 and 1009. (K) Shooting facilities with firing positions, sections 243 and 1010. (L) Miscellaneous. (1) Team or player seating, section 221.2.1.4. (2) Accessible route to bowling lanes, section. 206.2.11. (3) Accessible route in court sports facilities, section 206.2.12. 1.5 Construction Tolerances The ADA Standards reflect the need for small variations between the standards and the resulting constructed feature. All dimensions are subject to conventional industry tolerances except where the requirement is stated as a range with specific minimum and maximum end points. Application of conventional industry tolerances must be on a case -by -case, project -by -project basis. Predetermined guidelines for construction tolerances could unnecessarily encourage contractors and others to deviate from the access regulations and may wrongfully be viewed by some to have the effect of law. Conventional building industry tolerances include those for field conditions and those that may be a necessary consequence of a particular manufacturing process. Recognized tolerances are not intended to apply to design work. The barrier data collected in the right-of-way for this Transition Plan do not 3 § 35.151(b)(4)(ii)(C) Path of travel --safe harbor Q 1.0 Legal Requirements Page 5 Packet Pg. 127 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a reflect the application of construction tolerances. The City will evaluate the application of construction tolerances on a case by case basis when alterations or barrier remediation actions are undertaken. 1.6 Maximum Extent Feasible In an alteration or new construction project, the City must incorporate the ADA Accessibility standards to the maximum extent feasible 4. As part of the Plan's implementation the City Engineer should document all design exceptions: When pre-ADA streets or sidewalks are altered, there may be space limitations that restrict how much they can be altered to install accessible curb ramps. In these cases, the curb ramps installed must meet the accessibility requirements of the ADA to the maximum extent feasible. Scoping requirements in the ADA Standards establish limitations for the running slope of the ramp run of curb ramps installed during alterations to pre-ADA streets and walkways5. The Civil Rights Division recognizes that there will be very rare instances when it will be technically infeasible for a curb ramp installed during alterations to pre-ADA roadways and walkways to be constructed in full and strict compliance with the requirements of ADA Standards § 4.1.6(3)(a) and § 4.7 because of physical or site constraints. In such circumstances, state and local governments must install curb ramps that provide accessibility to the maximum extent feasible 6. Before reaching a conclusion about technical infeasibility, state and local governments need to consider the extent to which physical or site constraints can be addressed by alternative curb ramp designs. The burden of proving technical infeasibility lies with the state or local government that constructed it. When highways, streets, and roads are built or altered post-ADA, they must have curb ramps at certain locations. Curb ramps must be located wherever there are curbs or other barriers to entry from a pedestrian walkway or sidewalk, including any intersection where it is legal for a pedestrian to cross the street, whether or not there is any designated crosswalk. Curb ramps must also be located wherever there are curbs or other barriers to entry at any designated pedestrian crosswalks that are located mid -block. Likewise, when sidewalks or walkways are built or altered post- ADA, they must include curb ramps or other sloped areas wherever they intersect with highways, streets, or roads and pedestrians may legally cross the vehicular way as well as at public transportation stops. By contrast, for pre-ADA highways, streets, roads, and sidewalks that have not been altered, state and local governments may choose to construct curb ramps at every point where a pedestrian walkway intersects a curb. However, they are not necessarily required to do so. Under a more flexible standard called "program 4 Title II Regulations 28 CFR §35.151(b) S ADA Standards § 4.1.6(3)(a). 6 ADA Standards § 4.1.6(1)(j). Public Review Draft — 7.28.2017 1 Page 6 Packet Pg. 128 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a access," alternative routes to buildings may be acceptable where people with disabilities must travel only a marginally longer route than the general public'. 1.7 ADA Self -Evaluation and Transition Plan Requirements The ADA Self -Evaluation and Transition Plan (SETP) is intended to provide a framework for the continuous improvement of the City programs and facilities for people with disabilities. This plan addresses the facilities within the public right-of-way: curb ramps, pedestrian signals, and pedestrian access routes. The SETP is intended to be a living document that is regularly updated as programs and services change, and as barriers are removed, and new facilities come under ownership or control of the City. Programs, activities, and services offered by the City of Edmonds to the public must be accessible for people with and without disabilities. Accessibility applies to all aspects of a programs or services provided by the City, including: • accessible/adaptive equipment; • special events on public properties; • customer service; • televised and audiovisual public • emergency evacuation procedures; information; • facilities; • tours and trips; • notice requirements; • training and staffing; • printed information; • transportation services; • program eligibility and admission; • use of consultants for delivering program • public meetings; services; and • public telephones and communication • website. devices; The ADA Self -Evaluation for programmatic access identifies and makes recommendations to correct those policies and practices in the above -mentioned programs and services that are inconsistent with Title II requirements and result in limitations on access for persons with disabilities. As part of the Self- Evaluation8, the City: • Identifies the City's programs, activities, and services; • Reviews the policies, practices, and procedures that govern the administration of the City's programs, activities, and services; • Provides opportunity for public comment, - Makes the report available to the public; and • Correct any programs, activities, and services that are not consistent with the requirements. For this planning process, a self -evaluation of policies, programs, and procedures citywide has not been conducted, rather a self -evaluation was completed for the division of the Public Works Department focused on the facilities within the right-of-way and is included in Chapter 2 of this document. A Transition Plan is a document that outlines a strategy for the City to progress toward compliance with the Americans with Disabilities Act. The Transition Plan identifies barriers for persons with disabilities and a schedule to remove those barriers over time and must include9: httos://www.ada.eov/Dcatoolkit/char)6toolkit.htm 8 Department of Justice, Title II Regulations Subpart D § 35.105 9 Department of Justice, Title II Regulations Subpart D § 35.150 1.0 Legal Requirements Page 7 Packet Pg. 129 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a • A list of the physical barriers in the City's facilities that limit the accessibility of its programs, activities, or services to individuals with disabilities; • A detailed outline of the methods to be used to remove these barriers and make the facilities accessible; • A schedule for taking the steps necessary to achieve compliance with the ADA, Title II; • Provide opportunity for the public to provide comment on the Transition Plan; and • The name of the individual responsible for the plan's implementation. This Transition Plan is an assessment of the City's right-of-way facilities to determine if there are barriers to City services, programs, and activities for persons with disabilities. The City has identified which City owned and maintained right-of-way facilities have access barriers for persons with disabilities and has developed a schedule for barrier removal to comply with Title II of the ADA. The Transition Plan for these facilities is described in Chapter 3 and is the result of a detailed evaluation of all City of Edmonds right-of-way facilities. 1.8 Public Involvement The ADA requires the involvement of the members of the disabilities community in the development and review of the ADA Self -Evaluation and Transition Plan10. For this planning process the City formed an ADA Stakeholder Advisory Committee that met twice over the course of the plan's development. The first meeting was held on December 16, 2016 where the City presented the work plan, presented criteria for barrier removal priority development, and gathered information on issues experienced within the City's right-of-way. This group met a second time on July 26, 2017 to provide feedback on the Administrative Draft ADA Self -Evaluation & Transition Plan for the Right -of -Way before distribution to the public. The public review draft of the Plan will be made available on the City's website and at highly frequented public facilities, a press release will be issued advertising the public comment period for the Plan. After the public review and comment period this section of the document will be updated and comments will be incorporated into the Plan before the document goes before City Council. 10Department of Justice, Title II Regulations Subpart D § 35.150 (d)(1) Q Public Review Draft — 7.28.2017 1 Page 8 Packet Pg. 130 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 2.0 Self -Evaluation: Policies, Procedures, and Program Accessibility 2.1 Introduction Programs, activities, and services offered by the City of Edmonds to the public must be accessible for people with and without disabilities. Accessibility applies to all aspects of a program or service, including advertisement, eligibility, participation, testing or evaluation, physical access, provision of auxiliary aids, transportation, policies, and communication. This section details the review of current Public Works policies, services, programs, and activities -- as they pertain to the pedestrian access routes within the public right-of-way -- based on City staff responses to the program accessibility questionnaire administered in December 2016 along with a review of the City's policy, program, and program documents. The findings and recommendations contained in this section will serve as a basis for the implementation of specific improvements for providing access to City programs as required by the ADA. c c� 2.2 Programmatic Modifications r_ The ADA Coordinator, or designee, will follow-up with department staff to review the recommendations contained in this section. Where a policy, program, or procedure creates a barrier to accessibility that is c unique to the department or a certain program, the ADA Coordinator, or designee, will coordinate with the department head or program manager to address the removal of the barrier in the most reasonable Q 0 and accommodating manner in accordance with applicable law. Q 2.3 Self -Evaluation Findings and Recommended Actions This section is organized into categories based on the requirements of Title II of the ADA. Accessible/Adaptive Equipment • Customer Service • Notice Requirements • Printed Information • Televised and Audiovisual Public Information • Website • Public Telephones and Communication Devices • Training and Staffing • Program Eligibility and Admission • Public Meetings • Transportation Services • Tours and Trips • Use of Consultants for Delivering Program Services • Emergency Evacuation Procedures • Facilities • Special Events on Public Properties Actions are listed as required or recommended based on the Americans with Disabilities Act. Some actions are always required, such as not charging a fee for providing accommodation for a disability, while other actions are only required when requested, such as providing alternative formats such as large print agendas. In many cases, the City has many alternatives in selecting methods for providing accessible programs, activities, and services. Accessibility/Adaptive Equipment Adaptive aids are devices, controls, appliances, or items that make it possible for persons with disabilities to improve their ability to function independently and participate in programs, services, and activities offered by the City. For example, a pen, note pad and clip board provided to a person with a 2.0 Self -Evaluation: Policies, Procedures, and Program Accessibility Page 9 Packet Pg. 131 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way hearing or speech impairment to write notes on or accessible electronic equipment such as an accessible computer station are considered adaptive equipment. Required or Recommended Actions: 1. It is required to provide and maintain in working order accessible equipment for people with disabilities when the public is allowed or required to use equipment such as computers, copy machines, telephones, or other technologies. 2. It is recommended to collaborate with community organizations that serve people with disabilities to develop and maintain a current resource list of assistive technology equipment and sources. 3. It is recommended to establish and maintain a "Resources Toolkit" of adaptive aids and human resources that should be available for use by individuals participating in City programs. Include information about the availability of specific equipment and/or individuals who are available to provide special services (e.g., ASL translation) in public information materials such as brochures and the City's website. 4. It is recommended to include accessibility as a criterion for purchasing. Whenever possible, a- evaluate furniture and building material purchases for compatibility with a wide range of c ° r disabilities and sensitivities. Select items that are easily adjustable or can be modified to accommodate a variety of physical and ergonomic needs when purchasing items such as L furniture, site furnishings, and office systems. Consultation with disability organizations and o persons with disabilities will assist in this task. Q Customer Service In -person interaction with the public is one of the primary functions of most City departments. Required or Recommended Actions: 1. It is required that the City continue the policy of not charging an additional fee to the person requesting accommodation for their disability for program modifications or alternative formats 2. It is required to continue to make appropriate modifications to regular practices to accommodate the needs of individuals with disabilities when providing customer service. 3. To meet this requirement, it is recommended that the City develop criteria for determining reasonable modifications to provide program accessibility, which may include acquisition or redesign of equipment, assignment of aides to persons with disabilities, and provision of services at alternative accessible sites. An approach should include: • Requests for reasonable modification in programs or services should be made to the department responsible for the program or service. • The department offering the program or service should meet with the individual with a disability to identify which aspects of the program limit participation and what modifications can be made. • The department offering the program or service should consult with the relevant program or service staff to determine the reasonable modification. The department offering the program or service may also consult with the City's ADA Coordinator or other resources providing services or information regarding persons with disabilities as appropriate. • The department offering the program or service should document the modification(s) that was offered and the response of the person with the disability to the modification(s) Public Review Draft — 7.28.2017 1 Page 10 Packet Pg. 132 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way offered. This documentation should be filed with the City ADA Coordinator's office. All accessibility requests should be tracked. The ADA requests should be analyzed periodically to look for global issues that can be addressed and problems than can be solved proactively. • If individuals with a disability are not satisfied with the results of this process, they should be directed to the City's ADA Grievance Procedure. 4. It is recommended that the City: • Assess the composition and needs of the population of people with disabilities, and take the necessary steps to improve communication and outreach to increase the effective participation of community members with disabilities in all City programs and activities. • Create partnerships with organizations that provide services to people with disabilities to assist in communicating about accessible City programs. Keep programs up-to-date through increased community involvement and partnerships with organizations that offer services to persons with disabilities. • Publicize efforts to increase participation by persons with disabilities, which might include activities such as distributing program brochures to members of the disability community. Notice Requirements Title II regulations require the City to inform the public of the rights and protections provided by the ADA for access to public programs, services, and activities. It is the obligation of the head of the public entity to determine the most effective way of providing notice to the public about their rights and the public entity's responsibilities under the ADA. Publishing and publicizing the ADA notice is not a one- time requirement. State and local governments should provide the information on an ongoing basis, whenever necessary. If you use the radio, newspaper, television, or mailings, re -publish and re- broadcast the notice periodically." Required or Recommended Actions: 1. It is required that the City include the following or similar notice regarding the City's commitment to providing accessible services. Model Notice Provided by the Department of Justice: In accordance with the requirements of title 11 of the Americans with Disabilities Act of 1990 ("ADA"), the [name of public entity] will not discriminate against qualified individuals with disabilities on the basis of disability in its services, programs, or activities. Employment: [name of public entity] does not discriminate on the basis of disability in its hiring or employment practices and complies with all regulations promulgated by the U.S. Equal Employment Opportunity Commission under title I of the ADA. Effective Communication: [Name of public entity] will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities so they can participate equally in [name of public entity's] programs, services, and activities, including qualified sign language interpreters, documents in Braille, and other ways of making information and communications accessible to people who have speech, hearing, or vision impairments. 11 https://www.ada.gov/pcatooIkit/chap2toolkit.htm Q 2.0 Self -Evaluation: Policies, Procedures, and Program Accessibility I Page 11 Packet Pg. 133 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Modifications to Policies and Procedures: [Name of public entity] will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities. For example, individuals with service animals are welcomed in [name of public entity] offices, even where pets are generally prohibited. Anyone who requires an auxiliary aid or service for effective communication, or a modification of policies or procedures to participate in a program, service, or activity of [name of public entity], should contact the office of [name and contact information for ADA Coordinator] as soon as possible but no later than 48 hours before the scheduled event. The ADA does not require the [name of public entity] to take any action that would fundamentally alter the nature of its programs or services, or impose an undue financial or administrative burden. Complaints that a program, service, or activity of [name of public entity] is not accessible to W persons with disabilities should be directed to [name and contact information for ADA a Coordinator]. c ° r [Name of public entity] will not place a surcharge on a particular individual with a disability or .N L any group of individuals with disabilities to cover the cost of providing auxiliary aids/services or ~ Q reasonable modifications of policy, such as retrieving items from locations that are open to the o Q public but are not accessible to persons who use wheelchairs. 2. It is required where the City communicates by telephone it can communicate with a person with hearing impairment using a TTY system or equally effective telecommunications systems such as 711 the Telecommunications Relay Service. 3. It is required that the City ensure effective communication and that interested persons can obtain information as to the existence and location of accessible services activities, and facilities. Some ways to ensure this is by including a statement regarding the availability, upon request, of alternative formats and auxiliary aids is included on announcements for City programs, and applications, including: • A non-discrimination notice in City hard copy and web publications that provides general information about City services, programs, or activities similar to the following: The City of Edmonds does not discriminate on the basis of disability in the admissions or access to its programs or activities. An ADA Coordinator has been designated to coordinate compliance with the non-discrimination requirements contained in the Department of Justice regulations implementing Subtitle A of Title 11 of the Americans with Disabilities Act (42 U.S.C. 12131-12134), which prohibits discrimination on the basis on disability by public agencies. Bertrand Hauss, ADA Coordinator 121 5th Ave N, Edmonds, WA 98020 425-771-0220 1 bertrand.hauss@edmondswa.gov Public Review Draft — 7.28.2017 1 Page 12 Packet Pg. 134 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way • The City's text telephone (TTY) number and/or Telecommunications Relay Service information, and the phone number and email address of the person who can provide assistance in meeting special needs; and • A notice that requests for alternative formats or auxiliary aids is required with 48-hour notice. 4. It is recommended that the City increase outreach to persons with disabilities and the organizations that serve them. The City should inform the public of the possible modifications that can be provided to make services, programs, and activities accessible. Printed Information To meet the ADA's communication standards, City departments must be able to provide information, when requested, in alternative formats such as using easy -to -understand language, Braille, large -print format, audiotape or CD, computer disk, or other formats as requested. Required or Recommended Actions: 1. It is required that the City provide alternative formats to printed information, when requested a (for example, enlarged print format for persons with visual disabilities or in simple language for o persons with cognitive disabilities). r 2. It is required that the City address all requests for other alternative formats or lengthy documents on an individual basis. a 3. It is required that any additional costs for alternative forms of communication are not assigned Q to the person with a disability requesting the alternative format. 4. It is required to provide programmatic changes (e.g., staff assistance) upon request to assist in f° a filling out forms or when alternative formats are unavailable or infeasible. r_ 0 5. It is recommended to include the following notice on materials printed by the City that are N made available to the public: c This publication can be made available in alternative formats, such as large print, Braille, or electronic format. Requests can be made by calling the ADA Coordinator at (425) 771-0220 (Voice) or by using the 711 Telecommunications Relay Service. Please allow 48 hours for your request to be processed. 6. It is recommended that the City provide instruction to each department on how to produce printed information in alternative formats for persons with various disabilities to ensure that requests are handled in a uniform and consistent manner. 7. It is recommended that when photos are part of a brochure or publication, photos of persons with disabilities are included Televised and Audiovisual Public Information Televised and audiovisual information is a means for disseminating public information through presentations produced by City departments. All televised and audiovisual information must be accessible to persons with disabilities. As more and more communication is being done remotely via the rapidly changing internet, it will be increasingly important that all communication tools maintain accessibility as technology changes. 2.0 Self -Evaluation: Policies, Procedures, and Program Accessibility I Page 13 Packet Pg. 135 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Required or Recommended Actions: 1. It is required that the City provide, when requested, alternatives to audio presentations for City programs and for audiovisual presentations produced by the City (including videos, films, and City Council, and Planning and Transportation Commission meetings) in order to ensure that persons with hearing impairments can benefit from these presentations. Closed captioning is not required. 2. It is recommended that when presenting PowerPoint or other visual presentations that the presenter read the slides and describe the graphics. This will allow people who are blind or visually impaired to receive the information being presented. 3. It is recommended that when photos are part of an audio-visual presentation, images of persons with disabilities are included. Website - City and Department Websites As people turn to the Internet as their primary source of information regarding services, programs, activities, and facilities, the City's website www.edmondswa.gov/transportation-text/ada-transition- c W plan.html takes on increased importance as a communications tool. IL 0 Providing public access to City publications online is an effective means of reaching persons with r rn disabilities. New accessibility standards for electronic and information technology covered by Section c L 508 of the Rehabilitation Act Amendments of 1998 have set forth the technical and functional ~ Q performance criteria necessary for such technology to be accessible. Q Required or Recommended Actions: 1. It is recommended that the City's website is accessible to people with disabilities, including those with visual impairment. 2. It is recommended that the City publish the Policy of Non -Discrimination, including on the Basis of Disability, on the City's website. 3. It is recommended that the City: • Increase outreach to persons with disabilities by having the website include more information about the City's commitment to providing accessible services. • Continually improve the accessibility of web pages through the use of web accessibility analysis to meet and/or exceed Section 508 of the Rehabilitation Act guidelines for accessibility of electronic information. Acquire the technological resources necessary to create accessible PDF and graphics files as described in ADA standards for electronic and information technology. • Assign one department the authority to provide standards and oversight for outside vendors who create pages and for departments who post their own documents. This will support consistent and accessible web pages. Monitor web pages for continued compliance with accessible web page standards. • Provide training to City staff members in creating accessible PDF and other electronic files for posting on City or departmental websites. • Use services that help web page authors provide an accessible website by identifying and repairing barriers to access for individuals with disabilities. Public Review Draft — 7.28.2017 1 Page 14 Packet Pg. 136 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Public Telephones and Communication Devices Even with the proliferation of cell phones, text and instant messaging, there is still a requirement for the provision of alternative communication technologies such as teletypewriters (TTY), telecommunication display devices (TDDs), or relay services for conducting communications with the public. Required or Recommended Actions: 1. It is required that staff members are able to use TTY equipment or other means of communicating over the telephone with a person with a hearing or speech impairment, such as the Telecommunications Relay Service (TRS) — 711, or are able to direct member of the public to knowledgeable staff. 2. It is required that publications that list phone numbers also include information on how people with hearing and/or speech impairment can communicate with departments by phone. 3. It is recommended that City staff become familiar with Video Remote Interpreting Services (VRI) for communicating with people with hearing and/or speech impairment. There are many situations where a live interpreter is required, such as in medical situations, but RVI is a convenient, flexible, lower -cost alternative to live interpreters. 0 r Training and Staffing As a part of the City's on -going staff development and training, the incorporation of disabilities awareness, standards, and resources is encouraged for all staff interfacing with the public or who a maintain the facilities used by the public. Q Required or Recommended Actions: 1. It is required that City staff is knowledgeable in providing accessible services, programs and activities for the public and that accessible facilities are maintained in working order 2. It is recommended that the City: • Provide all City staff members with on -going awareness and sensitivity training. • Provide training to City staff members who have contact with the public about how to provide modifications and use assistive devices to make their programs, activities, and services accessible. Ensure that customer service training includes information about communicating with and providing modifications for persons with a variety of disabilities. Include program -specific adaptations, assistive devices, and modifications in each department's accessibility policy manual. • Develop a comprehensive disability access training program. Educate all City staff about their responsibilities under the ADA. The City's ADA Coordinator and department supervisors should be responsible for ensuring that staff members receive training. Reference materials that address special modifications should be included in this training. • Develop standard guidelines for training materials. These guidelines should include standard language that appropriately describes the City's policy on inclusion and non-discrimination, and staff members should receive training in using the guidelines effectively. • Consider offering training to employees who wish to learn basic American Sign Language (ASL) communication skills for staff who have contact with the public and depending on operational needs. This training should emphasize basic communication skills and should not be viewed as a substitute for utilizing qualified ASL interpreters when requested. 2.0 Self -Evaluation: Policies, Procedures, and Program Accessibility I Page 15 Packet Pg. 137 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way • Train Maintenance Services staff with respect to accessibility compliance and building codes to maintain facilities in an accessible condition. • Provide City staff members with training in general building evacuation procedures for assisting persons with hearing, speech, visual, mobility, and learning disabilities in an emergency. • Designate one manager in each department to serve as the department's Disability Access Liaison. The Liaison will be required to complete a training program and attend periodic retraining regarding accessibility issues. Program Eligibility and Admission The public must be able to access all programs, service, and activities, regardless of disability. Admission criteria, ability to complete forms and participation in interviews must be available to all members of the public by providing reasonable accommodations. Required or Recommended Actions: 1. It is required that individuals with disabilities are not excluded from regular programs or are a c required to accept special services or benefits. G r 2. It is required to include individuals with disabilities in regular programs to the maximum extent possible. 3. It is required that the City modify standard policies, practices, or procedures to avoid Q discrimination unless the modification would fundamentally alter the nature of the program, Q result in an undue financial or administrative burden, or create a hazardous situation for the participant or others. a 4. It is required that when specific policies that would exclude or limit the participation of persons c with disabilities are necessary for the safe operation of programs, those requirements are based N on real risks, not on speculation, stereotypes, or generalizations. L 5. It is recommended that a non-discrimination statement is included on application or registration ~ forms. 6. When interviews are required for program participation, it is required that the meetings are 0 :., held in an accessible location and that alternative formats or auxiliary aids are provided upon request. F Public Meetings Public meetings are a regularly occurring activity for public agencies. The main objective of any public meeting is to impart and solicit information on public issues of importance to the local government. Where these meetings are held are an important consideration in meeting the requirements of the ADA. Required or Recommended Actions: 1. It is required that public meetings are held in accessible facilities in order to accommodate the participation of people with mobility disabilities. An accessible location includes, but is not limited to, the following: wheelchair accessible path -of -travel to the meeting room, accessible restrooms, accessible parking, an accessible route from transit and parking to the meeting facility, temperature control, signage, and the ability to provide access to fresh air for persons with chemical sensitivities Public Review Draft — 7.28.2017 1 Page 16 Packet Pg. 138 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 2. It is required to provide agendas and other meeting materials in alternative formats, when requested. 3. It is required to provide flexibility in the time limit on speaking for individuals with communication difficulties. 4. It is required to have assistive listening devices available for public meetings. 5. It is recommended to display a notice on meeting agendas indicating the availability of accessibility modifications. 6. It is recommended to prepare a list of accessible meeting spaces to facilitate the scheduling of meetings and/or the relocation of meetings upon request. 7. It is recommended to move disability -related agenda items to the beginning of agendas when possible. Some people with disabilities are unable to stay late at meeting because they use para- transit, or have fixed schedules, and/or need to use personal care attendants. 8. It is recommended for the City to maintain a list of on -call American Sign Language interpreters who may be brought to meetings to assist individuals with hearing impairments. 9. It is recommended to provide instruction to City staff on the types of modification requests that may be made by persons with different types of disabilities including auxiliary aids such as a c different types of assistive listening systems, sign language interpreters, readers, descriptive services, and other assistive technologies like "real-time captioning." Provide guidance in the layout of the room, sign -in table and refreshments table, to ensure that these features are L accessible. p 10. Consider assigning a staff member to be a greeter at public meetings and events. Identify the Q staff member as a resource for persons who may require assistance. Transportation Services Many public agencies provide public transportation services. The public accommodation standards for these services are set forth by the Federal Transit Administration." Required or Recommended Actions: 1. None. The City does not provide this service. Tours and Trips As part of some public agency programs tours and trips are involved that require transportation services, which are subject to ADA Title II Regulations. Required or Recommended Actions: It is required that the City modifies tours and trips, when requested, to enable people with mobility, visual, speech, hearing and cognitive disabilities to participate. Tour or trip registration materials must enable a person who may need accessibility accommodation to communicate the requested modification. Provide information to participants in advance of a tour or trip regarding the destination, transportation, and other characteristics of the event so that informed requests for accommodations can be made. 2. It is recommended that the City evaluate the destination of the tour or trip and the means of transportation in order to determine its accessibility and any accommodations or modifications 12 Title 49, Subtitle A, Part 38 - Americans with Disabilities Act Accessibility Specifications for Transportation Vehicles. 2.0 Self -Evaluation: Policies, Procedures, and Program Accessibility I Page 17 Packet Pg. 139 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a that may be required. If a tour route or a portion of a route is not accessible, the City will continue the practice of rerouting the tour or providing alternate accommodation (e.g., photographs, close -captioned videos, etc.) that will allow the tour to be experienced if requested. Use of Consultants for Delivering Program Services Many public agencies rely on the use of consultants for the delivery of services. These consultants are considered an extension of the City's services and are required to adhere to the same ADA regulations as the City. Required or Recommended Actions: 1. It is required that the City ensure consultants are aware of their obligation to make city programs and activities accessible. 2. It is recommended the City monitor programs and activities to ensure continued accessibility. Emergency Evacuation Procedures Life and safety protocols and procedures are required to include plans for people with disabilities Required or Recommended Actions: 1. It is required that the City develop guidelines and a plan for the evacuation of persons with disabilities in various types of emergency situations. These plans should: • Address what to do when an alarm is triggered; • Establish meeting places for assistance and evacuation chairs; • Provide direction on what to do if assistance is not available; and • Establish floor captains. 2. It is required to train City staff regarding emergency evacuation procedures with periodic drills, both announced and unannounced. 3. It is recommended that the City: • Review existing procedures dealing with emergencies to ensure that persons with disabilities can be alerted and that they can alert emergency service providers. • Work with disability organizations to explore the use of other technologies such as audible exit signs for orientation and direction and vibrating paging systems. • Provide training for public safety personnel to enable them to communicate in basic American Sign Language in the event that there is an emergency condition and the area is being evacuated. For example, this training would be provided to police, firefighters, lifeguards, and building inspectors involved in post -disaster emergencies. • Take the necessary steps to ensure that emergency teams are aware of persons with disabilities in their communities who may require special assistance in the event of an emergency. o Provide American Sign Language interpreters at emergency facilities, on an as - needed basis. To accomplish this, form a pool of interpreters as a resource from which to draw upon (see Section 6). o Specific suggestions for evacuation plans and procedures can be found through the US Access Board website at http://www.ada.gov/emergencyprepguide.htmand the Q Public Review Draft — 7.28.2017 1 Page 18 Packet Pg. 140 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Emergency Procedures for Employees with Disabilities in Office Occupancies document published by FEMA and the US Fire Administration. Facilities The identification of structural barriers in buildings, parks and the public rights -of -way are a required element of a ADA Transition Plan. Required or Recommended Actions: 1. It is recommended that the City provide information about facility accessibility on department publications including the department's website. 2. It is recommended that requests relating to facility access be recorded and monitored. Accessibility requests should be analyzed periodically to look for global issues that can be addressed and problems than can be solved proactively. Special Events on Public Properties When a public agency rents its properties to a third party for special events, the responsibility for maintaining an accessible environment is temporarily deferred to the tenant. Required or Recommended Actions: 1. It is recommended that in situations where private organizations sponsor events in City facilities, the City inform the organizer about applicable ADA requirements. 2. It is recommended that the City provide a checklist and information during the application process to inform organizers of their responsibility for accessibility under the ADA. 2.4 Policy and Program Review The policy and program review was completed in December of 2016. Each policy and program reviewed is listed in the with recommendations for implementing specific improvements for providing access to City programs within the right-of-way as required by the ADA. Table 1: Policy and Program Review Recommendations Policy and Reference '•licy Review/Recommendatio Program General and Use of the word • Use of the word "handicap" is generally to be avoided. Overall "handicap" Recommend use of disabled or person with a disability. throughout City policies Board & Municipal Code • Recommend establishing a Board or Commission for Commission 10.30 Disability People with Disabilities (current Disability Board appears Appointments Board to be a Disability Insurance Board and not related to accessibility issues). • Include people with disabilities or caregivers of people with disabilities as board/commission members. Q 2.0 Self -Evaluation: Policies, Procedures, and Program Accessibility Page 19 Packet Pg. 141 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a Policy and Reference Policy Review/Recommendations Program Comprehensive Page 3-66: Non- • ADA is referenced here as the standard for sidewalks and Transportation motorized curb ramps in the right-of-way. Consider referencing Plan System - Existing Proposed Right -of -Way Access Guidelines (PROWAG) for Pedestrian technical standards pertaining to sidewalks and curb Facilities ramps in the right-of-way. Page 3-74: Curb • Prioritization of improvements should be in line with the Ramp Upgrade priority levels assigned by the ADA.28 C.F.R. Program 35.150(d)(2): If a public entity has responsibility or authority over streets, roads, or walkways, its transition plan shall include a schedule for providing curb ramps or other sloped areas where pedestrian walks cross curbs, giving priority to walkways serving entities covered by the Act, including State and local government offices and facilities, transportation, places of public accommodation, and employers, followed by walkways serving other areas. Curb Ramp No specific policy • Continue maintaining citizen request log. Program in place • Recommend the city create a budget line item for accessibility improvements that would provide a regular funding source for all barrier removal projects, including curb ramps, that arise through citizen request or capital planning. Disabled Parking No specific policy • Formalize practice of installing on -street accessible in place parking spaces. • Refer to PROWAG for recommended frequency and technical standards. • Formalize and make publicly available the process for Citizen Requests of on -street accessible parking spaces. Leaf Removal Standard • Recommend addressing pedestrian zones of sidewalks, Operating street crossings, or other pedestrian zones. Procedures • Recommend providing information as part of the program/project/event notification program. • Recommend exploring a program encouraging property owners to clear leaves from drains, reducing standing water at curb ramps. Q Public Review Draft — 7.28.2017 1 Page 20 Packet Pg. 142 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Policy and Reference Policy Review/Recommendations Program Municipal Code 5.05.010 Animal • Recommend to add definition of service animal. Control - (https://www.ada.gov/service_animals_2010.htm) Definitions • Recommend amendment to "Covered Animal" definition 5.05.050.A so as to allow for the use of Miniature Horses when Animal Control - defined as a service animal. Running at Large • Recommend amendment to "Covered Animal" language 5.05.060.A to exclude Miniature Horses when defined as a service Animal Control - animal from requirements and limitations imposed on Dogs on Public "Covered Animals" Grounds • Recommend change of language from "seeing eye dog" 5.05.130 Animal to "service animal" Control - Covered • Recommend change of language to allow service animals Animal to be off leash where being on leash would limit or Regulations restrict their specifically trained task. 8.36 Motorized • Where the Motorized Foot Scooter is being used as an Foot Scooters Other Power Driven Mobility Device (OPDMD) by a 8.36.10.D. person with a disability, it is recommended to allow the Prohibited Areas use of the vehicle where pedestrians are permitted. (https://www.ada.gov/opdmd.htm) • Limits may be placed on authorized areas where the use of an OPDMD might pose a risk to public safety or the environment. 18.85 Street • It is recommended to add language providing street Trees trees should be maintained with a minimum of 80 inches of clear space above the sidewalk (ADA 307). Notifications - No specific policy • Continue to post notifications to the City website and Event/Program/ in place Facebook page and in the local newspaper. Project • Recommend formalizing a Notifications Policy to relay messages regarding events, programs, and projects. • Recommend developing a strategy for project/program/event notifications that will inform all planning processes. • Recommend including a strategy that specifically addresses outreach for members of the disability community. Q 2.0 Self -Evaluation: Policies, Procedures, and Program Accessibility I Page 21 Packet Pg. 143 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a Policy and Reference Policy Review/Recommendations Program Operations for Standard • No comment Shell Valley Operating Emergency Access Procedures Road Pavement 2012 Draft • It is recommended to prioritize maintenance of Maintenance pavement that is part of a pedestrian access routes Management (crosswalks, intersections). Program • Ensure curb ramps are upgraded and barriers are removed when roadway alterations activities are completed: addition of new layer of asphalt, cape seals, in -place asphalt recycling, microsurfacing and thin -lift overlay, mill and fill/mill and overlay, new construction, open -graded surface course, rehabilitation and reconstruction, and resurfacing of crosswalk. Pedestrian Sign Municipal Code • Continue to require a Street Use Permit for temporary Policy 18.70 Street Use objects in the public right-of-way including sandwich and boards and other pedestrian signs. Encroachment • Recommend to provide design guidelines for pedestrian Permits signs in the right-of-way on pertinent information sheet. Sidewalk Program No specific policy • Recommend the city create a budget line item for (Minor) in place accessibility improvements that would provide a regular funding source for all barrier removal projects, including minor sidewalk repairs, that arise through citizen request or capital planning. • Recommend maintaining citizen request log. Snow and Ice Standard • Recommend including sidewalks, street crossings, or Control Operating other high priority pedestrian zones. Procedures Street Banner 2017 Application • No comment Application Q Public Review Draft — 7.28.2017 1 Page 22 Packet Pg. 144 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Policy and Reference Policy Review/Recommendations Program Street No specific policy • Recommend formalizing a Notifications Policy to relay Closures/Work in place messages street closures and work zones. Zones • Continue to post notifications on City website and local newspaper. • Recommend including a strategy that specifically addresses outreach for members of the disability community. 0 Continue to follow MUTCD Traffic Control Standards and refer to PROWAG and WSDOT for recommendations for temporary accessible routes. Storm Drainage Standard • Recommend providing method for citizens to report a Operating problem where drainage or street debris is affecting the Procedures usability of pedestrian facilities. Vegetation Standard • Complaints are prioritized by the potential for hazards Management Operating created by the site obstruction. Recommend including Procedures obstructions or reductions of pedestrian facilities in the Vegetation Management prioritization for barrier removal so they are maintained in an accessible and usable state for people with disabilities. 2.5 PROW City Standard Details The City's standard details were reviewed in December of 2016 to ensure compliance with current code The details were also reviewed with operations and maintenance in mind that could potentially affect long-term accessibility such as pavement strength, thickness, tree roots, potential installation of future improvements and other issues that could cause obstructions such as temporary flooding. Codes consulted during the review include the 2011 Proposed Right -of -Way Accessibility Guidelines and Washington State Amended 2015 International Building Code. The complete standard details review is available under separate cover from the City. The City acknowledges that the existing Federal and State technical standards for curb ramps may not meet the needs of all users with disabilities. The City will continually work with community stakeholders to identify alternative designs to issues such as counter slope at the base of a curb ramp and textured surfaces along pedestrian access routes. Q 2.0 Self -Evaluation: Policies, Procedures, and Program Accessibility Page 23 Packet Pg. 145 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way c c� IL c 0 r .N c L Q Q This page intentionally left blank. Public Review Draft — 7.28.2017 1 Page 24 Packet Pg. 146 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 3.0 ADA Transition Plan Title II of the ADA requires that public entities having responsibility for or authority over facilities, streets, roads, sidewalks, and/or other areas meant for public use to develop a Transition Plan to make their facilities meet the standards for Program Accessibility. Program Accessibility means that a program, activity and/or service are accessible when viewed in its entirety. Simply put, a Transition Plan transitions inaccessible facilities into environments that are accessible to and functional for individuals with disabilities. The ADA addresses accessible public rights -of -way where sidewalks are provided by the City of Edmonds. The ADA does not mandate the installation of sidewalks, but does require curb ramps at intersections where existing sidewalks are provided on the roadway. In 2002, the United States Court of Appeals for the Ninth Circuit, whose jurisdiction includes Washington, held for the first time that sidewalks constitute a service, program or activity of a city, and sidewalks are therefore subject to the ADA's program accessibility regulations 13. Before the Barden decision, the law was unclear whether municipalities' transition plans should address barrier removal M from sidewalks. When originallywritten the ADA specifically addressed curb rams subsequently the p Y p, q Y a c Courts have added sidewalks. This Transition Plan addresses facilities in the public right-of-way and ° includes curb ramps, pedestrian access routes (sidewalks, crosswalks, railroad crossings, and hazards), r_ and pedestrian activated signals that fall within the City's area of responsibility. Q 3.1 Facility Evaluation Process a The evaluation of public right-of-way facilities for this planning process includes curb ramps, pedestrian access routes, and pedestrian activated signals throughout the City's public right-of-way14. Pedestrian access routes include items along the pedestrian path of travel: sidewalks, crosswalks, railroad crossings, and hazards.15 The facilities were evaluated over a four -month period in early 2017 (January through April) using criteria from the 2010 ADA and the 2011 Proposed Accessibility Guidelines for Pedestrian Facilities in the Public Right -of -Way. Due to the volume of facilities in the public right-of-way managed by the City, a GIS based assessment tool was used to allow for a cost effective and efficient assessment of these facilities. See Appendix A: ADA Data Dictionary for information on the specific attributes collected for each right-of-way facility. 3.2 Public Rights -of -Way Prioritization Prioritization criteria for assigning the barrier removal phasing schedule has been developed. Under Title II Regulation § 35.150(d)(2) the criteria for prioritizing barriers within the public rights -of way are identified. If a public entity has responsibility or authority over streets, roads, or walkways, its transition plan shall include a schedule for providing curb ramps or other sloped areas where pedestrian walks cross curbs, giving priority to walkways serving entities covered by the Act, including State and local government offices and facilities, transportation, 13 Barden v. City of Sacramento, 292 F.3d 1073 (9th Cir. 2002) 14 Accessible on -street parking was addressed as part of the City's 2015 Comprehensive Transportation Plan effort. is Hazards include the following items along the path of travel: overhanging and protruding objects, changes of level, openings that are > %2 inch and/or oriented in the direction of travel, obstacles that narrow the, and driveways with excessive cross slope. 3.0 ADA Transition Plan I Page 25 Packet Pg. 147 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a places of public accommodation, and employers, followed by walkways serving other areas. The City of Edmonds has included the following in the criteria for prioritizing facilities in the public rights -of -way: • Locations serving government offices and public facilities; • Locations serving transportation; • Locations serving commercial districts and employers; and • Locations serving other areas. In addition to the required criteria, the City has prioritized the following: • Locations of citizen complaints; and • Locations serving medical and health facilities. 3.3 Priorities for Barrier Removal Tables 2, 3, and 4 on the following pages illustrate the prioritization criteria for curb ramp, pedestrian access route, and pedestrian activated signal barrier removal projects in the City's public right-of-way. Each facility evaluated has been assigned a rank based on its barrier priority and category. The priority assigned is based on the information described in section 3.2 and the barrier category is based on the condition of the facility. The descriptions for each category are provided after each of the tables. The highest ranked facilities are shaded in purple, medium ranked in gold, and lower ranked in green. The facilities with no assigned rank have no access deficiencies identified and have no assigned color. The columns in the matrix indicate the assigned priority and are in order of importance from left to right, with the left column having the highest importance. The rows indicate the category of condition assigned to each facility during the evaluation process, with the top row having the highest importance Q Public Review Draft — 7.28.2017 1 Page 26 Packet Pg. 148 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Table 2: Curb Ramp Priority Matrix for Barrier Removal Projects Curb Ramps ADA 35.150(d) Geospatial Proximity Priorities* A B C D E F Location of Citizen Complaint Location Serving Location Serving Location Location Serving Priorities Priority / Request (ADA Government Medical/Health Serving Commercial Location Serving (Category) Description Title II Program Offices li Public Facility Transportation Districts, Employers Other Areas Access) Facilities 1 See Category 1 Al B1 C1 D1 E1 F1 Description High-------------- ----------------------- ------------------------- ---------------------- -------- 1 2 See Category 2 A2 B2 C2 D2 E2 F2 Description 3 See Category 3 A3 B3 C3 D3 E3 F3 Description Medium-------- ------------------------- ------ 1 4 See Category 4 A4 B4 C4 D4 E4 F4 Description SeeCategory 5 Low-------------- --------------------- ---------------------------- --------- 1 5 Description A5 B5 C5 D5 E5 F5 No 6 deficiencies A6 B6 C6 D6 E6 F6 identified *The priorities listed under columns 8, D, E, and F are specified under Title 1128 CFR Section 35.150 (d) Q 3.0 ADA Transition Plan I Page 27 Packet Pg. 149 7.4.a Curb Ramp Barrier Description Category 1: • The curb ramp is built-up in the travel lane. • The curb ramp is significantly damaged or deteriorated and is unsafe. • There is a sidewalk with no curb ramp access or there is an obstruction to accessing the curb ramp. Category 2: • The curb ramp has no detectable warning. • The curb ramp has no receiving ramp. • The curb ramp is not located within marked crossings (when present). • A 4 by 4-foot clear space at the bottom of the ramp outside of the travel lane is not provided. Category 3: • Width of ramp is less than 48 inches. • Running slope of ramp exceeds 8.33 percent. • Cross slope of ramp exceeds 2 percent. • Curb ramp has no top turning space. • Counter slope of the curb ramp is greater than five percent. • Surface slopes at grade break are not flush. • The curb ramp has a lip at the bottom. City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Category 4: • Slope of ramp flared sides (if applicable) exceeds 10 percent. • Top turning space is less than 4 by 4-feet or the slope exceeds two percent. • Perpendicular curb ramp with constrained top turning space is less than 4 by 5-feet. • Parallel curb ramp with constrained top turning space on two or more sides is less than 4 by 5-feet. Category 5: • Diagonal curb ramp design without existing physical constraints • The detectable warning surface is incorrectly placed. • The detectable warning surface is the incorrect size. • The detectable warning surface is not the full width of the ramp Category 6: • No deficiencies identified. • Curb ramp meets the 1991 ADA standards and was built before March 15, 2012 r a Public Review Draft — 7.28.2017 1 Page 28 Packet Pg. 150 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Table 3: Pedestrian Access Route Priority Matrix for Barrier Removal Projects Pedestrian ADA 35.150(d) Geospatial Proximity Priorities* Access Routes A B C D E F Location of Location Serving Priorities Priority Citizen Complaint Government Location Serving Location Location Serving Location Serving (Category) Description / Request (ADA Offices & Public Medical/Health Serving Commercial Districts, Other Areas Title II Program Facilities Facility Transportation Employers Access) High-------------- ------------------------ ------------------------- --------------------- ----------------------------- - 1 See Category 1 Al B1 C1 D1 E1 F1 Description 2 See Category 2 A2 B2 C2 D2 E2 F2 Description A3 3 See Category 3 B3 C3 D3 E3 F3 Description Medium---------- ------------------------- ----- 1 4 See Category 4 A4 B4 C4 D4 E4 F4 Description See Category 5 --------------- ------------------------- --------------------- ----------------------------- ---- 5 Description B5 V C5 D5 E5 F5 No 6 deficiencies A6 B6 C6 D6 E6 F6 identified *The priorities listed under columns 8, D, E, and F are specified under Title 1128 CFR Section 35.150 (d) Q 3.0 ADA Transition Plan I Page 29 Packet Pg. 151 7.4.a Table Pedestrian Access Route Barrier Descriptions Category 1: • No detectable warning at railroad crossing. • The sidewalk width is less than 48 inches, this includes fixed obstacles reducing the width of the pedestrian access route Category 2: • Railroad flangeway gap is greater than 3 inches • The detectable warnings at the railroad crossing are incorrectly placed. • Running slope of crosswalk exceeds 5 percent. Category 3: • The sidewalk has cross slopes that exceed two percent. • The crosswalk cross slope exceeds 2 percent. • The driveway cross slope exceeds 2 percent. City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Category 4: • The sidewalk has overhanging or protruding objects along its route. • The sidewalk has vertical changes of level that exceed % inch or up to a % inch with a bevel. • The sidewalk has horizontal openings greater than 2 inches wide or opening is parallel to the path of travel. • The sidewalk surface is not firm and slip resistant or surface condition of the sidewalk is poor (cracking/spalding/heaving/other). Category 5: • The sidewalk width is less than 48 inches, due to a movable object reducing the width of the pedestrian access route. • The pedestrian access route does not have pullouts every 200-feet. Category 6: • No deficiencies identified. Q Public Review Draft — 7.28.2017 1 Page 30 Packet Pg. 152 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Table 4: Pedestrian Activated Signal Priority Matrix for Barrier Removal Projects Pedestrian ADA 35.150(d) Geospatial Proximity Priorities* Activated Signals A B C D E F Location of Citizen Complaint Location Serving Location Serving Location Serving Priorities Priority / Request (ADA Government Medical/Health Location Serving Commercial Location Serving (Category) Description Title II Program Offices &Public Facility Transportation Districts, Other Areas Access) Facilities Employers Accessible High --------------- ------- I Medium ---- ------ -------- I Low ----------------- ------------ � Pedestrian 1 Activated Al B1 C1 D1 E1 F1 Signal Not Provided 2 See Category 2 A2 B2 C2 D2 E2 F2 Description 3 See Category 3 A3 B3 C3 D3 E3 F3 Description *The priorities listed under columns 8, D, E, and F are specified under Title 1128 CFR Section 35.150 (d) c R IL c 0 c H Q Q 3.0 ADA Transition Plan I Page 31 Packet Pg. 153 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Pedestrian Activated Signal Barrier Descriptions Category 1: • Accessible pedestrian activated signal is not provided. Category 2: • Level clear space at push button not provided. • Reach to push button from clear space is obstructed. • Operating force of pushbutton exceeds 5 pounds of force. • The pushbutton does not have an informational sign or incorrect signage. • Pushbutton pilot light (if applicable does not activate). • A locator tone is not provided. • A tactile arrow is not provided. • Pushbutton locator tone activates at incorrect time. • Pushbutton locator tone duration and intensity needs adjustment. Category 3: • Pushbutton is locator more than 10-feet from curb, shoulder or pavement. • Pushbutton is farther than 5-feet from the crosswalk line farthest from the intersection (when applicable). • Pushbutton height is not within 42 and 48 inches above the ground. • Pushbutton and arrow are not parallel with the direction of travel. • Distance between 2 pushbuttons on the same corner is less than 10-feet. Public Review Draft — 7.28.2017 1 Page 32 Q Packet Pg. 154 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 3.4 Phasing Schedule The ADA Title II regulations state that if a transition plan will take more than one year to fully implement, it must contain interim steps to provide program accessibility. This plan proposes a 15-year strategy for removing public right-of-way barriers that limit program accessibility. The City reserves the right to modify barrier removal priorities to allow flexibility in accommodating community requests, petitions for reasonable modifications from persons with disabilities, changes in City programs, and funding opportunities and constraints. The barrier removal strategy for the next 15-years incorporates flexibility in the process and allows the City to respond to new opportunities as they arise. Curb Ramps Table 5, Map 116, and Map 2 on the following pages summarize the assigned barrier removal ranks for the City's curb ramps. • Curb ramps meeting Criterion A: Locations of Citizen Complaints and Requests for ADA Title II Program Access will be evaluated and programmed within one year of the complaint. • Curb ramps ranked high will be addressed within the next one to five years. • Curb ramps ranked medium will be addressed within the next one to 10-years. • Curb ramps ranked low will be addressed within the next one to 15-years. • Curb ramps with no deficiencies will be addressed on an as needed basis. The current schedule includes the removal of 407 high ranked curb ramps in the next one to five years, 940 medium ranked curb ramps in the next one to 10-years, and low ranked curb ramps in the next one to 15-years. The City intends to remove existing barriers in conjunction with on -going street maintenance and capital improvement projects. It is assumed that as curb ramps are evaluated in greater detail as part of future projects and complaints, a percentage of ramps will fall within the "safe harbor" provisions, as described in Section 1.4. These "safe harbor" ramps will help to reduce the deficient ramp inventory. The City will then revise the curb ramp transition plan schedule for the removal of the remaining barriers, update the curb ramp inventory, and revise the transition plan schedule for the removal of remaining barriers on a regular basis. 16 All data represented in the document maps are a snapshot in time of facility ADA barrier status. Maps 1 through 6 data collection was completed in April of 2017. Data collection for Map 7 was completed in the summer of 2016. Q 3.0 ADA Transition Plan I Page 33 Packet Pg. 155 City of Edmonds - ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a Table 5: Curb Ramp Transition Plan Phasing Schedule •.to Percent TotalSchedule High 1 B1 16 0.8% 1-5 years 1 C1 1 0.1% 1-5 years 1 D1 68 3.5% 1-5 years 2 B2 28 1.4% 1-5 years 2 C2 4 0.2% 1-5 years 2 D2 67 3.4% 1-5 years 3 B3 195 10.0% 1-5 years 3 C3 28 1.4% 1-5 years Subtotal 407 20.9% Medium 1 F1 104 5.3% 1-10 years 2 E2 45 2.3% 1-10 years 2 F2 45 2.3% 1-10 years 3 D3 434 22.3% 1-10 years 3 E3 293 15.0% 1-10 years 4 B4 6 0.3% 1-10 years 4 C4 1 0.1% 1-10 years 4 D4 6 0.3% 1-10 years 5 B5 6 0.3% 1-10 years Subtotal 940 48.2% 3 F3 310 15.9% 1-15 years 4 E4 19 1.0% 1-15 years 4 F4 16 0.8% 1-15 years 5 C5 1 0.1% 1-15 years 5 D5 12 0.6% 1-15 years 5 E5 2 0.1% 1-15 years 5 F5 6 0.3% 1-15 years Subtotal 366 18.8% No Deficiencies 6 B6 7 0.4% As Needed 6 C6 6 0.3% As Needed 6 D6 54 2.8% As Needed 6 E6 32 1.6% As Needed 6 F6 18 0.9% As Needed Subtotal 117 6.0% Interim Condition* IC - 120 6.2% As Needed Subtotal 120 6.2% . IT • Ill *Interim condition curb ramps are those locations that will need further review due to temporary status or design that is atypical and may not require the construction of a standard curb ramp. g Public Review Draft - 7.28.2017 1 Page 34 Packet Pg. 156 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a PLACEHOLDER MAP 1: CURB RAMP - HIGH Q 5.0 Definitions I Page 35 Packet Pg. 157 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a PLACEHOLDER MAP 2: CURB RAMP — MED & IOW Q Public Review Draft — 7.28.2017 1 Page 36 Packet Pg. 158 7.4.a City of Edmonds - ADA Self -Evaluation & Transition Plan for the Right -of -Way Pedestrian Access Routes Table 6, Table 7, and Maps 3 through 6 on the following pages summarize the assigned barrier removal ranks for the City's pedestrian access routes. • Pedestrian access routes meeting Criterion A: Locations of Citizen Complaints and Requests for ADA Title II Program Access will be evaluated and programmed within one year of the complaint. • Pedestrian access routes ranked high will be addressed within the next one to five years. • Pedestrian access routes ranked medium will be addressed within the next one to 10-years. • Pedestrian access routes ranked low will be addressed within the next one to 15-years. Table 6: Pedestrian Access Route Transition Plan Phasing Schedule Category High 1 B1 125 1.7% 1-5 years 1 C1 32 0.4% 1-5 years 1 D1 436 5.8% 1-5 years 1 E1 141 1.9% 1-5 years 1 F1 371 4.9% 1-5 years 2 B2 45 0.6% 1-5 years 2 C2 2 0.0% 1-5 years 2 D2 210 2.8% 1-5 years 3 B3 296 3.9% 1-5 years 3 0 70 0.9% 1-5 years Subtotal 1,728 22.9% Medium 2 E2 17 0.2% 1-10 years 2 F2 61 0.8% 1-10 years 3 D3 1382 18.3% 1-10 years 3 E3 430 5.7% 1-10 years 4 B4 182 2.4% 1-10 years 4 C4 37 0.5% 1-10 years 4 D4 691 9.2% 1-10 years Subtotal 2,800 37.2% Low 3 F3 1665 22.1% 1-15 years 4 E4 218 2.9% 1-15 years 4 F4 1056 14.0% 1-15 years 5 B5 4 0.1% 1-15 years 5 C5 1 0.0% 1-15 years 5 D5 15 0.2% 1-15 years 5 E5 5 0.1% 1-15 years 5 F5 41 0.5% 1-15 years Subtotal Total for All Projects 3,005 7,533 39.9% 00 Q 5.0 Definitions I Page 37 Packet Pg. 159 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a The current schedule includes 1,728 high ranked projects, 2,800 medium ranked projects, and 3,005 low ranked projects. The projects are a mix of identified barrier types along the pedestrian access routes. Table 7 summarizes the total number of projects by type of pedestrian access barrier. Table 7: Pedestrian Access Route Summary by Type of Barrier Project Type High Sidewalk 545 Barrier Project Medium 501 Low 237 Total 1,283 Crosswalk 327 300 87 714 Railroad Crossing 8 0 0 8 Hazard 848 1,999 2,681 5,528 Total 1,728 2,800 3,005 WMIN Q Public Review Draft — 7.28.2017 1 Page 38 Packet Pg. 160 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a PLACEHOLDER MAP 3: SIDEWALKS Q 5.0 Definitions I Page 39 Packet Pg. 161 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a PLACEHOLDER MAP 4: CROSSWALKS Q Public Review Draft — 7.28.2017 1 Page 40 Packet Pg. 162 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a PLACEHOLDER MAP 5: HAZARDS HIGH Q 5.0 Definitions I Page 41 Packet Pg. 163 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a PLACEHOLDER MAP 6: HAZARDS MED & LOW Q Public Review Draft — 7.28.2017 1 Page 42 Packet Pg. 164 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Pedestrian Activated Signals Table 8 and Map 7 summarize the assigned barrier removal ranks for the City's pedestrian activated signals. • Pedestrian activated signals meeting Criterion A: Locations of Citizen Complaints and Requests for ADA Title II Program Access will be evaluated and programmed within one year of the complaint. • Pedestrian activated signals ranked high will be addressed within the next one to five years. • Pedestrian activated signals ranked medium will be addressed within the next one to 10-years. • Pedestrian activated signals ranked low will be addressed within the next one to 15-years. This preliminary schedule represents a 15-year target for barrier removal. The schedule includes 36 high ranked pedestrian activated signals in the next one to five years, 60 medium ranked in the next one to 10-years, and 54 lower ranked in the next one to 15-years. The City plans to use the following guidelines for removing pedestrian activated signal barriers: IL • All new pedestrian activated signals will include an Accessible Pedestrian Signal (APS); r- 0 • Projects to add pedestrian activated signals to existing signals will include APS; N c • Projects that significantly modify pedestrian activated signals will include APS; L • APS will be scheduled for installation on existing signals when requested by the public; and Q • APS will be installed on existing signals on a priority ranking basis per the Transition Plan as Q funding allows. c Table 8: Pedestrian Activated Signal Transition Plan Schedule Category High Priority 1 B1 22 13.3% 1-5 years 2 B2 14 8.4% 1-5 years Subtotal 36 21.7% Medium Priority 1 C1 14 8.4% 1-10 years 1 D1 38 22.9% 1-10 years 2 D2 8 4.8% 1-10 years Subtotal 60 36.1% Low Priority 1 E1 32 19.3% 1-15 years 2 E2 14 8.4% 1-15 years 2 F2 8 4.8% 1-15 years Subtotal 54 32.5% No Deficiencies 2 C2 8 4.8% As Needed 2 D2 8 4.8% As Needed Subtotal 16 9.6% Total for All Projects 166 00 5.0 Definitions I Page 43 Packet Pg. 165 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a PLACEHOLDER MAP 7: PEDESTRIAN SIGNALS Q Public Review Draft — 7.28.2017 1 Page 44 Packet Pg. 166 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 3.5 Roadway Alterations and Maintenance: Triggers for Curb Ramp Barrier Removal The Department of Justice, in coordination with the U.S. Department of Transportation, specifies that public agencies are required to provide curb ramps or upgrade curb ramps whenever roadways are altered. An alteration is a change that affects or could affect the usability of all or part of a building or facility17. Alterations of streets, roads, or highways include activities such as reconstruction, rehabilitation, resurfacing, widening, and projects of similar scale and effect18. Maintenance activities on streets, roads, or highways, such as filling potholes, are not alterations19. The following list distinguishes between roadway alterations versus maintenance activities. ALTERATION20 • Addition of new layer of asphalt • Cape seals • In -place asphalt recycling • Microsurfacing and thin -lift overlay MAINTENANCE • Chip seals • Crack filling and sealing • Diamond grinding • Dowel bar retrofit • Fog seals • Joint crack seals • Mill and fill / mill and overlay • New construction • Open -graded surface course • Rehabilitation and reconstruction • Resurfacing of a crosswalk • Joint repairs • Pavement patching • Painting or striping • Scrub sealing • Slurry seals • Spot high -friction treatments • Surface sealing 3.6 Strategies for Funding Barrier Removal Opportunities for funding the removal of access barriers include: • New construction projects; • Roadway alteration projects; • Maintenance and repair projects and programs; • Dedication of a fund for ADA barrier removal; • Require private developers to remove access barriers when development affects facilities within the right-of-way; and • Actively seek out and apply for grant funding specific to removal of access barriers when available. 17 Title II Regulation § 35.151(b)(1) is 2010 ADA Standards, 106.5 19 July 8, 2013 Department of Justice/Department of Transportation Joint Technical Assistance https://www.ada.gov/doo-fhwa-ta.htm 20 December 1, 2015 QUESTIONS & ANSWERS Supplement to the 2013 DOJ/DOT Joint Technical Assistance https://www.ada.gov/doi-fhwa-ta-supplement-2015.html 5.0 Definitions I Page 45 Packet Pg. 167 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a The City currently has in place a pavement management program that schedules out roadway rehabilitation and maintenance. The City plans to review public roadway barriers during the implementation of this Plan, and address those barriers that can be resolved as part of the on -going pavement maintenance and rehabilitation program. As part of the review, the City will revise the Transition Plan schedule for the removal of barriers. The Transition Plan schedule will also be updated as projects for new construction and roadway alterations arise. Upcoming Barrier Removal Projects The City currently has four projects funded that will address ADA barriers identified in this plan. 76th Avenue West and 212`" All construction for this project have been identified as high priority barrier removal projects. • Sidewalk replacement for 250 feet on all approaches. All sidewalks for this project have been identified as high priority 238th Street Southwest from Highway 99 to SR-104 The construction for this project is a mix of high and medium priority barrier removal projects • New sidewalk on north side of 238th Street Southwest (SR-104 to 84th Avenue West) • New curb ramps from Hwy. 99 to SR-104 Dayton Street from 3rd Avenue to 9th Street (to be completed in 2019) The construction for this project is a mix of high and medium priority barrier removal projects • Driveway reconstruction for stretch between 7th Avenue and 8th Avenue (where existing missing sidewalk link / on south side of street) • New curb ramps along entire stretch 84th Ave. W Overlay from 220th to 212th (to be completed in 2019) The construction for this project is a mix of high and medium priority barrier removal projects. • New curb ramps on east side Citywide Pedestrian Crossing Improvements (to be completed in 2019) • SR-104 at 232nd Street Southwest • SR-524 at 84t" Avenue West • SR-524 at 7t" Avenue North or within proximity • 76t" Avenue at 206t" Street Southwest • 229th Place West at 106t" Avenue West • Dayton Street at 2nd Avenue West • Dayton Street at Commercial Drive • Walnut Street between 7t" Avenue South and 9t" Avenue South • Main Street at Olympic Avenue Public Review Draft — 7.28.2017 1 Page 46 Packet Pg. 168 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 4.0 ADA Policy and Complaint Procedure If a public entity has 50 or more employees, it is required to: • Designate at least one responsible employee to coordinate Americans with Disabilities Act (ADA) compliance; and • Develop and publish grievance procedures to provide fair and prompt resolution of complaints under Title II of the ADA at a local level21 The City has a designated ADA Coordinator for coordinating the efforts of the City to comply with Title II and for investigating any complaints that the City has violated Title II of the ADA. The Coordinator also is responsible for coordinating the efforts of the City to comply with all other applicable State and Federal physical and program accessibility requirements. 4.1 Notice Under the Americans with Disabilities Act E In accordance with the requirements of Title II of the Americans with Disabilities Act of 1990 ("ADA"), a the City of Edmonds will not discriminate against qualified individuals with disabilities on the basis of r- 0 disability in its services, programs, or activities. N c Employment: The Cit of Edmonds does not discriminate on the basis of disability in its hiring or Y Y� g � employment practices and complies with all regulations promulgated by the U.S. Equal o Employment Opportunity Commission under Title I of the ADA. Q Effective Communication: The City of Edmonds will generally, upon request, provide appropriate aids and services leading to effective communication for qualified persons with disabilities so they can participate equally in City of Edmonds' programs, services, and activities, including qualified sign language interpreters, documents in Braille, and other ways of making information and communications accessible to people who have speech, hearing, or vision impairments. Modifications to Policies and Procedures: The City of Edmonds will make all reasonable modifications to policies and programs to ensure that people with disabilities have an equal opportunity to enjoy all of its programs, services, and activities. For example, individuals with service animals are welcomed in the City of Edmonds offices, even where pets are generally prohibited. The City of Edmonds will not place a surcharge on a particular individual with a disability or any group of individuals with disabilities to cover the cost of providing auxiliary aids/services or reasonable modifications of policy, such as retrieving items from locations that are open to the public but are not accessible to persons who use wheelchairs. 21 ADA Best Practices Tool Kit for State and Local Governments, http://www.ada.gov/pcatoolkit/chap2toolkit.htm 4.0 ADA Policy and Complaint Procedure I Page 47 Packet Pg. 169 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 4.2 City of Edmonds ADA Grievance Procedure under the ADA This Grievance Procedure is established to meet the requirements of the Americans with Disabilities Act of 1990 ("ADA"). It may be used by anyone who wishes to file a complaint alleging discrimination on the basis of disability in the provision of services, activities, programs, or benefits by the City of Edmonds. The City's Personnel Policy governs employment -related complaints of disability discrimination. The complaint should be in writing and contain information about the alleged discrimination such as name, address, phone number of complainant and location, date, and description of the problem. Alternative means of filing complaints, such as personal interviews or a tape recording of the complaint, will be made available for persons with disabilities upon request. The complaint should be submitted by the grievant and/or his/her designee as soon as possible but no later than 60 calendar days after the alleged violation to: Mr. Bertrand Hauss ADA Coordinator / Transportation Engineer, bertrand.hauss@edmondswa.gov c c� Within 15 calendar days after receipt of the complaint, Mr. Bertrand Hauss or his designee will meet a with the complainant to discuss the complaint and the possible resolutions. Within 15 calendar days of o r the meeting, Mr. Bertrand Hauss or his designee will respond in writing, and where appropriate, in a format accessible to the complainant, such as large print, Braille, or audio tape. The response will explain the position of the City of Edmonds and offer options for substantive resolution of the Q complaint. Q If the response by Mr. Bertrand Hauss or his designee does not satisfactorily resolve the issue, the complainant and/or his/her designee may appeal the decision within 15 calendar days after receipt of the response to Mayor Earling or his designee. ° r Within 15 calendar days after receipt of the appeal, Mayor Earling or his designee will meet with the complainant to discuss the complaint and possible resolutions. Within 15 calendar days after the meeting, Mayor Earling or his designee will respond in writing, and, where appropriate, in a format accessible to the complainant, with a final resolution of the complaint. All written complaints received by Mr. Bertrand Hauss or his designee, appeals to Mayor Earling or his designee, and responses from these two offices will be retained by the City of Edmonds for at least three years. Public Review Draft — 7.28.2017 1 Page 48 Packet Pg. 170 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 5.0 Definitions The following is a summary of many definitions found in the ADA. Please refer to the Americans with Disabilities Act22 for the full text of definitions and explanations23. 5.1 Auxiliary Aids and Services The term auxiliary aids and services include: • Qualified interpreters or other effective methods of making orally delivered materials available to individuals with hearing impairments; • Qualified readers, taped texts, or other effective methods of making visually delivered materials available to individuals with visual impairments; and • Acquisition or modification of equipment or devices; and other similar services and actions. 5.2 Complaint A complaint is a claimed violation of the ADA. 5.3 Disability The term disability means, with respect to an individual: • A physical or mental impairment that substantially limits one or more of the major life activities of such individual; • A record of such impairment; or • Being regarded as having such impairment. 5.4 Discrimination on the Basis of Disability Discrimination on the basis of disability means t024: • Limit, segregate, or classify a citizen in a way that may adversely affect opportunities or status because of the person's disability; • Limit, segregate, or classify a participant in a program or activity offered to the public in a way that may adversely affect opportunities or status because of the participant's disability; • Participate in a contract that could subject a qualified citizen with a disability to discrimination; • Use any standards, criteria, or methods of administration that have the effect of discriminating on the basis of disability; • Deny equal benefits because of a disability; • Fail to make reasonable accommodations to known physical or mental limitations of an otherwise qualified individual unless it can be shown that the accommodation would impose an undue burden on the organization's operations; • Use selection criteria that exclude otherwise qualified people with disabilities from participating in the programs or activities offered to the public; and 22 ADA.gov United States Department of Justice Civil Rights Division, http://www.ada.gov/ 23 Title II Regulations. 28 C.F.R. § 35.104 Definitions. 24 Title II Regulations. 28 C.F.R. § 35.130 General prohibitions against discrimination. 5.0 Definitions I Page 49 Packet Pg. 171 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way • Fail to use tests, including eligibility tests, in a manner that ensures that the test results accurately reflect the qualified applicant's skills or aptitude to participate in a program or activity. 5.5 Having a Record of Impairment An individual is disabled if he or she has a history of having an impairment that substantially limits the performance of a major life activity; or has been diagnosed, correctly or incorrectly, as having such impairment. 5.6 Physical or Mental Impairments Physical or mental impairments may include, but are not limited t025: vision, speech, and hearing impairments; emotional disturbance and mental illness; seizure disorders; mental retardation; orthopedic and neuromotor disabilities; learning disabilities; diabetes; heart disease; nervous conditions; cancer; asthma; Hepatitis B; HIV infection (HIV condition); and drug addiction if the addict has successfully completed or is participating in a rehabilitation program and no longer uses illegal c�a drugs. a c 0 The following conditions are not physical or mental impairments: transvestitism; illegal drug use; N homosexuality or bisexuality; compulsive gambling; kleptomania; pyromania; pedophilia; exhibitionism; L voyeurism; pregnancy; height; weight; eye color; hair color; left-handedness; poverty; lack of education; ~ Q a prison record; and poor judgment or quick temper if not symptoms of a mental or physiological Q disorder. .. 5.7 Qualified Individual with a Disability A qualified individual with a disability means an individual with a disability who, with or without reasonable modification to rules, policies, or practices; the removal of architectural, communication, or transportation barriers; or the provision of auxiliary aids and services, meets the essential eligibility requirements for the receipt of services or the participation in programs or activities provided by the city. 5.8 Reasonable Program Modifications If the individual's disabilities prevent them from performing the essential functions of the program or activity, it is necessary to determine whether reasonable program modifications would enable an individual to perform the essential functions of the program or activity26. Reasonable program modification is any change in program or activity or in the way things are customarily done that enables an individual with a disability to enjoy equal program opportunities. Accommodation means modifications or adjustments: • To a registration or application process to enable an individual with a disability to be considered for the program or activity; 25 Title II Regulations. Appendix B 28 C.F.R. Test C—Being regarded as having such an impairment. 26 Title II Regulations. 28 C.F.R. § 35.130 General prohibitions against discrimination. Subpart B—General Requirements Public Review Draft — 7.28.2017 1 Page 50 Packet Pg. 172 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way • To the program or activity environment in which the duties of a position are performed so that a person with a disability can perform the essential functions of the program or activity; and • That enables individuals with disabilities to enjoy equally the benefits of the program or activity as other similarly situated individuals without disabilities enjoy. Modification includes making existing facilities and equipment used by individuals readily accessible and usable by individuals with disabilities. Modification applies to: • All decisions and to the application or registration process; • All services provided in connection with the program or activity; and • Known disabilities only. Modification is not required if: c c� • It changes the essential nature of a program or activity of the person with a disability; a c • It creates a hazardous situation; o r • Adjustments or modifications requested are primarily for the personal benefit of the individual with a disability; or • It poses an undue burden on the city. a 0 Q 5.9 Regarded as Having a Disability An individual is disabled if she or he is treated or perceived as having an impairment that substantially a limits major life activities, although no such impairment exists. o 5.10 Substantial Limitations on Major Life Activities Individuals are disabled if they have a physical or mental impairment that (a) renders them unable to perform a major life activity, or (b) substantially limits the condition, manner, or duration under which they can perform a particular major life activity in comparison to other people. Major life activities are functions such as caring for oneself, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working. In determining whether physical or mental impairment substantially limits the condition, manner, or duration under which an individual can perform a particular major life activity in comparison to other people, the following factors shall be considered: • The nature and severity of the impairment; • The duration or expected duration of the impairment; and • The permanent or long-term impact (or expected impact) of or resulting from the impairment. 5.11 Undue Burden The City of Edmonds shall not provide an accommodation that imposes an undue burden on the operation of the City's business. Undue burden means significant difficulty or expense incurred in the provision of accommodation. Undue burden includes, but is not limited to, financial difficulty. Undue 5.0 Definitions I Page 51 Packet Pg. 173 City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 7.4.a burden refers to any modification that would be unduly costly, extensive, substantial, or disruptive, or that would fundamentally alter the nature of operation of the business of the city. Whether a particular accommodation will impose an undue hardship is determined on a case -by -case basis. If a particular modification is determined to cause an undue burden to the City of Edmonds, the city shall attempt to identify another modification that would not pose such a burden. If cost causes the undue burden, the city must consider whether funding for modification is available from an outside source. If no such funding is available, the city must give the person with a disability the opportunity to provide the modification or to pay for that portion of the modification that constitutes an undue burden. The following factors shall be considered in determining whether a program modification would create an undue burden: the nature and cost of the modification, the financial resources of the city available to make the modification, the impact the expense of the accommodation will have on the affected city operation, and the permanence of the alterations affecting the site. c� a !1 P Q Public Review Draft — 7.28.2017 1 Page 52 Packet Pg. 174 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 6.0 Program Accessibility Guidelines, Standards and Resources 6.1 Introduction To facilitate access to all City programs and departments, the City will maintain the program accessibility guidelines, standards and resources. The information is available to all employees and volunteers. The City will add to these guidelines when necessary to address its needs and include information and technological devices that help staff members and volunteers communicate with individuals with a variety of disabilities. The City will periodically review the components of this section as new technologies are developed, to ensure that the best types of modifications are included. 6.2 Federal Accessibility Standards and Regulations Below are resources for Federal standards and regulations provided by the U.S. Department of Justice and the U.S. Access Board U.S. Department of Justice a. The U.S. Department of Justice provides many free ADA materials including the Americans with c Disability Act (ADA) text. Printed materials may be ordered by calling the ADA Information Line [(800) 514-0301 (Voice) or (800) 514-0383 (TTY)]. Publications are available in standard print as well as large print, audiotape, Braille and computer disk for people with disabilities. Documents, including the following publications, can also be downloaded from the Department of Justice o website. http://www.ada.gov/ Q ADA Regulation for Title II: This publication describes Title II of the Americans with Disabilities Act, Pub. L. 101-336, which prohibits discrimination on the basis of disability by public entities. Title II of the ADA protects qualified individuals with disabilities from discrimination on the basis of disability in the services, programs or activities of all state and local governments. This rule adopts the general prohibitions of discrimination established under section 504, as well as the requirements for making programs accessible to individuals with disabilities and for providing equally effective communications. It also sets forth standards for what constitutes discrimination on the basis of mental or physical disability, provides a definition of disability and of qualified individual with a disability, and establishes a complaint mechanism for resolving allegations of discrimination. http://www.ada.gov/regs2010/titlell 2010/titlell 2010 regulations.htm Title II Technical Assistance Manual (1993) and Yearly Supplements: The 56-page manual explains in lay terms what state and local governments must do to ensure that their services, programs and activities are provided to the public in a nondiscriminatory manner. Many examples are provided for practical guidance. http://www.ada.gov/taman2.html Accessibility of State and Local Government Websites to People with Disabilities: The 5-page publication provides guidance on making state and local government websites accessible. http://www.ada.gov/websites2.htm ADA Information for Law Enforcement: This page contains compliance assistance materials to help state and local law enforcement officers understand how to interact with victims, witnesses, suspects and others who have disabilities. http://www.ada.gov/policeinfo.htm 6.0 Program Accessibility Guidelines, Standards and Resources I Page 53 Packet Pg. 175 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Department of Justice/Department of Transportation Joint Technical Assistance on the Title II of the Americans with Disabilities Act Requirements to Provide Curb Ramps when Streets, Roads, or Highways are Altered through Resurfacing: Published July 8, 2013 this technical memorandum describes the obligation to provide curb ramps whenever streets, roadways, or highways are altered. https://www.ada.gov/doi-fhwa-ta.htm Glossary of Terms for DOJ/FHWA Joint Technical Assistance on the ADA Title II Requirements to Provide Curb Ramps When Streets Roads or Highways are Altered Through Resurfacing: Published July 8, 2013 this document is a companion to the above listed memorandum. https://www.ada.gov/doi- fhwa-ta-ilossary.pdf QUESTIONS & ANSWERS: Supplement to the 2013 DOJ/DOT Joint Technical Assistance on the Title II of the Americans with Disabilities Act Requirements To Provide Curb Ramps when Streets, Roads, or Highways are Altered through Resurfacing: Published December 1, 2015, this document responds to frequently asked questions that the Federal Highway Administration (FHWA) has received since the technical assistance document was published. https://www.ada.gov/doi-fhwa-ta-supplement-2015.html a c Title II: U.S. Department of Justice Publications The Department of Justice has published many technical guidance documents to assist public agencies with understanding their responsibilities under the ADA. Q Title II Technical Assistance Manual I Supplement: A 56-page manual that explains in lay terms what Q state and local governments must do to ensure that their services, programs, and activities are provided to the public in a nondiscriminatory manner. (1993) http://www.ada.gov/taman2.html f° The ADA and City Governments: Common Problems I PDF: A 9-page document that contains samples of common problems shared by city governments of all sizes, provides examples of common deficiencies and explains how these problems affect persons with disabilities. (2000) http://www.ada.gov/comprob.htm ADA Guide for Small Towns I PDF: A 21-page guide that presents an informal overview of some basic ADA requirements and provides cost-effective tips on how small towns can comply with the ADA. (2000) http://www.ada.gov/smtown.htm Accessibility of State and Local Government Websites to People with Disabilities I PDF: A 5-page publication providing guidance on making state and local government websites accessible. (2003) http://www.ada.gov/websites2.htm ADA Checklist for Polling Places I PDF: A 39-page checklist used as a self-help survey for voting officials to determine whether a polling place has basic accessible features needed by most voters with disabilities. (2004) http://www.ada.gov/votingchecklist.htm An ADA Guide for Local Governments: Making Community Emergency Preparedness and Response Programs Accessible to People with Disabilities I PDF: An 11-page illustrated publication that provides guidance on preparing for and carrying out emergency response programs in a manner that results in the services being accessible to people with disabilities. (2006) http://www.ada.gov/emergencyprep.htm Public Review Draft — 7.28.2017 1 Page 54 Packet Pg. 176 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Access for 9-1-1 and Telephone Emergency Services I PDF: A 10-page publication explaining the requirements for direct, equal access to 9-1-1 for persons who use teletypewriters (TTYs). (1998) http://www.ada.gov/911ta.htm Commonly Asked Questions About the ADA and Law Enforcement: A 12-page publication providing information for law enforcement agencies in a simple question and answer format. (2006) http://www.ada.gov/q&a law.htm Communicating with People Who Are Deaf or Hard of Hearing: ADA Guide for Law Enforcement Officers I PDF: An 8-panel pocket guide providing basic information for officers about ADA requirements for communicating effectively with people who are deaf or hard of hearing. (2006) http://www.ada.gov/lawenfcomm.htm Model Policy for Law Enforcement on Communicating with People Who Are Deaf or Hard of Hearing I PDF: A 4-page document serving as a model for law enforcement agencies to adopt policies on effective communication with people who are deaf or hard of hearing. Agencies are encouraged to download and adapt the policy to suit their needs. (2006) http://www.ada.gov/1awenfmodpoIicy.htm Questions and Answers: The ADA and Hiring Police Officers: A 5-page publication providing information on ADA requirements for interviewing and hiring police officers. (1997) http://www.ada.gov/copsg7a.htm U.S. Access Board Publications The full texts of federal laws and regulations that provide the guidelines for the design of accessible facilities and programs are available from the U.S. Access Board. Single copies of publications are available free and can be downloaded or ordered by completing a form available on the Access Board's website. In addition to regular print, publications are available in large print, disk, audiocassette and Braille. http://www.access-board.gov/ Communications & IT Access to information and communication technology (ICT) is addressed by Board standards and guidelines issued under Section 508 of the Rehabilitation Act and Section 255 of the Telecommunications Act. • Section 508 Standards: http://www.access-board.gov/guidelines-and- standards/communications-and-it/about-the-section-508-standards • Refresh of the Section 508 Standards and the Telecommunications Act Guidelines: http://www.access-board.gov/guidelines-and-standards/communications-and- it/a bout-th e-ict-refresh • Telecommunications Act Accessibility Guidelines: http://www.access-board.gov/guidelines-and- standards/communications-and-it/about-the-telecommunications-act-guidelines Buildings & Sites Standards issued under the Americans with Disabilities Act (ADA) address access to buildings and sites nationwide in new construction and alterations. • 2010 ADA Standards for Accessible Design: This document contains scoping and technical requirements for accessibility to buildings and facilities by individuals with disabilities under the Q 6.0 Program Accessibility Guidelines, Standards and Resources I Page 55 Packet Pg. 177 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Americans with Disabilities Act (ADA) of 1990. These scoping and technical requirements are to be applied during the design, construction and alteration of buildings and facilities covered by Titles II and III of the ADA, to the extent required by regulations issued by federal agencies including the Department of Justice and the Department of Transportation. http://www.access- board.gov/guidelines-and-standards/buildings-and-sites/about-the-ada-standards/ada- standards Recreation Facilities Access to recreation facilities, including play areas, swimming pools, sports facilities, fishing piers, boating facilities, golf courses and amusement rides, is addressed in the ADA standards. The ABA standards address outdoor developed areas guidelines which currently are applicable to Federal facilities and cover access to trails, picnic sites, camping sites and beach access routes. • Recreation Facilities: http://www.access-board.gov/guidelines-and-standards/recreation- facilities/about-recreation-facilities 2 ca • Outdoor Developed Areas: http://www.access-board.gov/guidelines-and-standards/recreation- a facilities/outdoor-developed-areas 0 r Streets and Sidewalks New guidelines in development by the Board cover access to public rights -of -way including sidewalks, intersections, street crossings and on -street parking. The Board is also addressing access to shared use o paths providing off -road means of transportation and recreation. Q • Public Rights -of -Way: http://www.access-board.gov/guidelines-and-standards/streets- sidewalks/public-rights-of-way • Shared Use Paths: http://www.access-board.gov/guidelines-and-standards/streets- sidewalks/shared-use-paths/about-this-rulemaking 6.3 State of Washington Accessibility Standards and Regulations The State of Washington Administrative Code (WAC) Title 51, Chapter 51- 50, http://apps.leg.wa.gov/wac/default.aspx?cite=51-50, adopts the 2015 International Building Code including Appendix E: Supplementary Accessibility Requirements and ICC/ANSI A117.1-2009 as of the writing of this document. https://fortress.wa.gov/ga/apps/sbcc/page.aspx?nid=14 and the Revised Code of Washington (RCW) under Title 70: Public Health and Safety, Chapter 70.92 intends to make buildings and facilities accessible to and usable by individuals with disabilities. Additionally, the Washington Department of Transportation has published an ADA field guide to assist jurisdictions with developing accessible public rights -of - way http://www.wsdot.wa.gov/publications/fulltext/Roadside/ADA Field Guide.pdf Because codes and standards are updated every few years, the City should have an ongoing program of regularly reviewing changes and updating policies and procedures related to accessibility to ensure compliance with current code. Public Review Draft — 7.28.2017 1 Page 56 Packet Pg. 178 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way 6.4 Resources Other resources for providing accessible programs and facilities ADA Document Portal: This website provides links to an ADA Collection consisting of more than 7,400 documents on a wide range of topics. The ADA Document Portal is supported by the ten ADA & IT Technical Assistance Centers. https://adata.org/ada-document-portal American Alliance of Museums: Accessible exhibit design publications are available for purchase from AAM's website, including Everyone's Welcome (available in a variety of formats), which addresses museum programs and the ADA, The Accessible Museum, which offers model programs of accessibility for older people and people with disabilities, and What Museum Guides Need to Know to provide access to blind and visually impaired visitors. http://www.aam-us.org Disability.gov: The website is a one -stop interagency portal for information on Federal programs, services and resources for people with disabilities, their families, employers, service providers and other community members. https://www.disability.gov/ National Center on Accessibility: The Center is a cooperative project between the National Park Service and Indiana University to provide information and technical assistance, primarily on recreation access. An example of the research activities of the NCA is the National Trails Surface Study. This study is primarily the result of questions that NCA receives from organizations, agencies and individuals who desire to make their trails accessible and are interested in an unobtrusive surface that blends, is friendly to the environment and provides a quality trail experience for people with and without disabilities. NCA also publishes 'What is an Accessible Trail?' which summarizes the Federal guidelines for outdoor developed areas and is available for downloading from its website. The NCA website also has information on campground accessibility, accessible picnic tables, access to beaches and inclusion of people with disabilities in aquatic venues. http://www.ncaonline.org/ National Center on Health, Physical Activity and Disability: The Center provides information and resources on physical activity to help people with disabilities find ways to become more active and healthier. The Center also provides information on how to provide access to fitness centers, schools, recreation facilities, camps and health and leisure services. http://www.nchpad.org/ Smithsonian Institution: The Accessibility Program has developed the Smithsonian Guidelines for Accessible Exhibition Design (1996), which are available for downloading from their website. Further information is available from the Smithsonian Accessibility Program at the Arts and Industries Building, Room 1239 MRC 426, Washington, D.C. 20560 (202) 786-2942. http://www.si.edu/accessibility Resources for Assistive Technologies (General) Assistive technology is a device or service that improves the functional capabilities of individuals with disabilities and promotes independence. • The National Institute on Disability and Rehabilitation Research: This agency of the U.S. Department of Education maintains a national web -based service that provides up-to-date links to assistive technologies and disability -related resources. http://www.abledata.com/ Q 6.0 Program Accessibility Guidelines, Standards and Resources I Page 57 Packet Pg. 179 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Alternative Format Communications Resources to produce standardized publications such as applications and registration forms in Braille, audiotape, large -print text and accessible electronic media will be assembled. Information regarding Braille Services and other accommodations for people with visual disabilities is available by contacting: • American Council of the Blind: ACB is a national organization advocating on behalf of persons who are blind or have low vision. ACB also publishes A Guide to Making Documents Accessible to People Who Are Blind or Visually Impaired, which is available online, in regular print, large print, Braille or on cassette tape. ACB is located at 1155 15th St. NW, Suite 1004, Washington, DC 20005 (800) 424-8666. Email info@acb.org or go to http://www.acb.org/ • National Center on Accessibility: NCA publishes 'What are Alternative Formats? How Do They Apply to Programs and Services?' which is available for downloading from their website. http://www.ncaonline.org/ • National Center for Accessible Media: NCAM is a research and development facility dedicated to the issues of media and information technology for people with disabilities in their homes, schools, workplaces and communities. Developers of Web- and CD -ROM -based multimedia r_ need an authoring tool for making their materials accessible to persons with disabilities. NCAM o r has developed two such tools, version 1.0 and 2.01 of the Media Access Generator (MAGpie), c for creating captions and audio descriptions for rich media. MAGpie is available for downloading from NCAM's website. http://ncam.wgbh.org Q 0 • American Sign Language Interpreters: A pool of on -call American Sign Language interpreters Q should be developed. This list should be routinely updated to ensure their availability. Some r_ programs may need to have a pool of interpreters who are available on a twenty -four-hour basis a- to handle emergency procedures. c o The required qualifications of these interpreters should be established. Many non -certified interpreters provided by local services may have excellent skills and be qualified to handle most circumstances. However, certain circumstances, such as the provision of emergency medical services, may require interpreters who are approved by the courts and can ensure a level of confidentiality. You may want to contact each agency in advance of a need for services to determine their rates so that you are prepared to cover the communication expenses, should the need arise. You should always request RID certified interpreters http://rid.org/. Only in the event that certified interpreters are unavailable should you rely on non -certified interpreters. Individuals who are hard of hearing generally do not use ASL interpreters. Always ask the individual requesting an accommodation what type of accommodation works best for them. Determining what accommodation(s) will be provided is an interactive process. Depending on the situation, accommodating an individual who is hard of hearing may include note writing, use of assistive listening devices and/or provision of Computer Assisted Real -Time (CART) captioning. Public Review Draft — 7.28.2017 1 Page 58 Packet Pg. 180 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way Assistive Listening Systems and Devices Systems and devices to amplify sound for persons with hearing disabilities should be available for public meetings and events. Various technologies exist for these devices. Different types of devices are more suitable for different types of hearing disabilities. Devices should be chosen to accommodate the greatest number of individuals. See the Assistive Listening Systems Technical Bulletins available on the U.S. Access Board's website. http://www.access-board.gov/ • Closed Caption Machine: To the extent practical, City departments should have access to a device for encoding closed captioning on films and videotapes used for training and other programs. • Optical Readers: Equipment that can translate printed information into an audio format should be available to the City programs. • Text Telephone (TTY): City programs should have access to a text telephone or have access to a telephone transfer service as required by the law and offered by public telephone companies. See the Text Telephones Technical Bulletin available on the U.S. Access Board's website. http://www.access-board.gov/ • TDI: TDI's (formerly known as Telecommunications for the Deaf, Inc.) mission is to promote equal access in telecommunications and media for people who are deaf, hard of hearing, late deafened or deaf blind. TDI's on-line resources include information about telecommunications access such a TTY, pagers, telephony, VoIP and more. http://tdiforaccess.org/ • Video Relay Services (VRS): Video Relay Service (VRS) is a form of Telecommunications Relay Service (TRS) that enables persons with hearing disabilities who use American Sign Language to communicate with voice telephone users through video equipment, rather than through typed text. Video equipment links the VRS user with a TRS operator — called a "communications assistant" (CA) — so that the VRS user and the CA can see and communicate with each other in signed conversation. Because the conversation between the VRS user and the CA flows much more quickly than with a text -based TRS call, VRS has become a popular form of TRS. www.fcc.gov/guides/video-relay-services • Hands on Video Relay Service: (877) 467-4877 for English, or (877) 467-4875 for Spanish • Sorenson Video Relay: Using a standard telephone, simply call the toll -free number (866)-327- 8877. Have the contact information of the deaf or hard -of -hearing individual (i.e. name, videophone number or IP address) ready. Remain on hold until the call is answered by the next available interpreter. • Sprint VRS: (877)709-5776 or http://www.sprintrelay.com/ Enlarging Printed Materials A copy machine capable of enlarging printed materials should be available for staff. Guide to Disabilities and Disability Etiquette A guide to disabilities and disability etiquette should be assembled and distributed to staff and volunteers. The guide will ensure that staff and volunteers are familiar with a variety of types of disabilities and sensitive to the abilities and needs of people with disabilities in order not to offend or demean them. The guide should be periodically updated to ensure that it includes current acceptable language for talking about disabilities. Q 6.0 Program Accessibility Guidelines, Standards and Resources I Page 59 Packet Pg. 181 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way • A Guide to Interacting with People who have Disabilities - Department of Homeland Security. https://www.dhs.gov/sites/default/files/publications/guide-interacting-with-people-who-have- disabilties 09-26-13.pdf Disability Awareness Guide - Tacoma Area Coalition of Individuals with Disabilities https://www.co.pierce.wa.us/DocumentCenter/View/6848 • Disability Etiquette - United Spinal Association https://www.unitedspinal.org/disability- etiquette/#Introduction Other Resources and Organizations Serving People with Disabilities • The Arc: The Arc (formerly Association for Retarded Citizens of the United States) is the country's largest voluntary organization committed to the welfare of all children and adults with mental retardation and their families. http://www.thearc.org • American Association of People with Disabilities: The American Association of People with Disabilities is the largest nonprofit, nonpartisan, cross -disability organization in the United c States. http://www.aapd.com/ a. • American Foundation for the Blind: The American Foundation for the Blind (AFB) is committed r_ to improving accessibility in all aspects of life —from cell phones to ATMs, on web sites and in workplaces. Services include assistance in making products and services accessible to people with visual impairments. AFB offers expert consulting services and accessible media production. AFB provides objective product evaluations of adaptive technologies through its assistive o technology product database. http://www.afb.org/ Q • Center on Technology and Disability: Funded by the U.S. Department of Education's Office of Special Education Programs, the Center on Technology and Disability provides a wide range of resources on assistive technology, from introductory fact sheets and training materials to in- depth discussion of best practices and emerging research. http://www.ctdinstitute.org/ • Disability.gov's online resources for High School: Guidelines for Accessing Alternative Format, inclusion materials, educational technology, a comprehensive list including college preparatory materials, transition issues for children with special needs and more. https://www.disability.gov/education • Disability Resources, Inc.: Disability Resources, Inc. is a national nonprofit organization that provides information about resources for independent living. DRI maintains an on-line directory of assistive technology resources. http://www.disabilityresources.org/ • Institute for Human Centered Design: The Institute (formerly known as Adaptive Environments) is a non-profit organization committed to advancing the role of design in expanding opportunity and enhancing experience for people of all ages and abilities. The organization provides education and consultation to public and private entities about strategies, precedents and best practices that go beyond legal requirements for human centered design for places, things, communication and policy that integrate solutions with the reality of human diversity. http://humancentereddesign.org/ • National Association of the Deaf: NAD is a national consumer organization representing people who are deaf and hard of hearing. NAD provides information about standards for American Sign Language Interpreters and the Captioned Media Program on its website. http://www.nad.org/ Public Review Draft — 7.28.2017 1 Page 60 Packet Pg. 182 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way • National Federation of the Blind: NFB is a national organization advocating on behalf of persons who are blind or have low vision. NFB provides on-line resources for technology for the blind, including a technology resource list, a computer resource list, screen access technology, sources of large print software for computers and sources of closed circuit TV (CCTV's). http://www.nfb.org/ • National Organization on Disability: The National Organization on Disability promotes the full and equal participation and contribution of America's 54 million men, women and children with disabilities in all aspects of life. NOD maintains an on-line directory of information and links including transportation -related resources. http://www.nod.org/ • Paralyzed Veterans of America: PVA is a national advocacy organization representing veterans. PVA's Sports and Recreation Program promotes a range of activities for people with disabilities, with special emphasis on activities that enhance lifetime health and fitness. PVA's website provides information on useful sports publications and a list of contacts. http://www.pva.org • United Cerebral Palsy Association: UCP's mission is to advance the independence, productivity and full citizenship of people with cerebral palsy and other disabilities, through a commitment to the principles of independence, inclusion and self-determination. UCP's Sports and Leisure Channel is designed for people with disabilities who are interested in sports and other leisure activities and proposes creative ideas for inclusive community recreation programs, including outdoor adventure activities for people with disabilities. Information about the Sports and Leisure Channel is available on UCP's website. http://www.ucp.org • United Spinal Association: United Spinal Association is a membership organization serving individuals with spinal cord injuries or disease. Formerly known as the Eastern Paralyzed Veterans Association, the organization expanded its mission to serve people with spinal cord injuries or disease regardless of their age, gender or veteran status. Information on accessibility training and consulting services and recreational opportunities for people with spinal cord injuries or disease is available on their website. http://www.unitedspinal.or� • World Institute on Disability: WID is an international public policy center dedicated to carrying out research on disability issues. WID maintains an online information and resource directory on technology, research, universal design and ADA. http://www.wid.org/resources/ Q 6.0 Program Accessibility Guidelines, Standards and Resources I Page 61 Packet Pg. 183 7.4.a City of Edmonds — ADA Self -Evaluation & Transition Plan for the Right -of -Way c c� IL c 0 r .N c L Q Q This page intentionally left blank. Public Review Draft — 7.28.2017 1 Page 62 Packet Pg. 184 7.5 City Council Agenda Item Meeting Date: 10/10/2017 Fishing Pier Rehabilitation Project (10min) Staff Lead: Rob English Department: Engineering Preparer: Katie MacCaul Background/History On February 9, 2016, Council awarded the contract for the Fishing Pier Rehabilitation Project to Razz Construction. On May 17, 2016, Staff provided a project update and preliminary budget to the City Council for additional repairs to the Fishing Pier. On June 14, 2016, Staff presented a Change Order with Razz Construction, Inc. for the Fishing Pier Rehabilitation Project Staff Recommendation Forward this item to the consent agenda for approval at the October 17th City Council meeting. Narrative The City and Razz Construction have been in dispute over deficient center joint repairs for twelve months. After the City conducted four sets of bond strength tests during construction, the contractor was informed in September 2016 that the repairs failed testing in ten of the eleven pier bays. The Contractor did not take any steps to remedy the repairs during the final months of construction before they demobilized in December 2016. Razz remobilized in July, two months after the City notified the Bond Company of the Contractor's potential failure to complete the work. During the next three months Razz conducted a series of bond strength tests that were of no benefit to the City. At the end of August, the City sent a Cure Notice to the Contractor and the Bond Company giving Razz 15 days to cure the default. By mid -September the Contractor stated that they would remedy the deficient repairs. To date Razz has not started work and has not provided a full construction schedule or any submittals. Razz has sent a series of seven letters to the City since December 2016. A significant amount of City staff time was spent researching and writing response letters. Engineering consultant BergerABAM provided technical support for the responses, including computer modeling of the pier structure to evaluate the effect of thermal gradients on the center joint repairs. Legal consultant McMillen Jacobs Associates has provided guidance, drawing upon their experience in construction law. Construction inspection consultant HWA GeoSciences provided observation of Razz's bond strength testing at the pier. All three consultant contracts will require supplemental agreements before the project is complete. Packet Pg. 185 7.5 Staff is requesting an increase in budget authorization of $75,000. Due to the uncertainty of Razz's actions, a $24,300 Management Reserve is included in the additional budget. Approval of the budget request will increase the total project budget from $1,900,000 to $1,975,000. Attachments: Budget Summary - 10.05.17 Packet Pg. 186 7.5.a Draft Fishing Pier Rehabilitation Budget Summary 10/5/2017 Contract Number: E4MB/c443 Funding Source Funding Amount 132 Parks Fund $100,000.00 Direct Appropriation WDFW $800,000.00 Aquatic Lands Enhancement Account Funding $500,000.00 WDFW 1$50,000.00 Additional RCO Funding 1 $450,000.00 Total Funding $1,900,000.00 Expenses - Contractor F/A Paid To Date Total Amount Contract Days Contract Award $917,185.00 $917,185.00 76 Amount Withheld for Deficient Center Joint Repairs -$12,782.00 0 CO #1 - Temp Lighting $3,834.08 $3,834.08 0 CO #2 - Edge Repair Investigation X $7,964.57 $7,964.57 0 CO #2 - Bollards X $82.55 $82.55 0 CO #2 - Galvanized Guard Rails & Light Poles -$8,898.01 -$8,898.01 0 CO #2 - 3 x 8 Trestle Railings -$321.52 -$321.52 0 CO #4 - Edge Repair Pier $372,196.46 $372,196.46 20 CO #4 - Delete Bid Item 14, Unexpected Repair Work -$84,000.00 -$84,000.00 0 CO #4 - Reduce Edge Spall/Delam Repair, 500 of 525 SF -$100,000.00 -$100,000.00 0 CO #4 - Anodes at Joint Repair $18,613.52 $18,613.52 2 CO #5 - Project Management Costs for Additional Repairs $38,616.81 $38,616.81 N/A CO #5 - Mob/Demob for WF Festival X $2,776.46 $2,776.46 0 CO #6 - Welded Wire Fabric, Edge Repair $10,749.46 $10,749.46 0 CO #6 - Additional Dowels, Edge Repair $5,486.24 $5,486.24 0 CO #6 - Dowel Pull Test Prep $548.59 $548.59 0 CO #6 - Force Accounts in June $842.30 $842.30 0 CO #7 - Work Platform Costs for Bid Item 3 $35,825.36 $35,825.36 N/A CO #8 - Weather Display Enclosure Heater $363.31 $363.31 0 CO #8 - Light Pole Wiring $439.03 $439.03 0 CO #8 - Guardrail Support Angle $683.22 $683.22 0 CO #8 - ADA Guardrail Modifications/3 x 8 Pier Railings $10,338.19 $10,338.19 0 CO #8 - Cigarette Removal from Guardrails $17,210.42 $17,210.42 0 CO #8 - Pier Electrical Outlets $1,847.20 $1,847.20 0 CO #9 - Pier Deck Sealing $9,310.51 $9,310.51 0 CO #9 - Pier Expansion Joint Guardrail Anchors $1,920.56 $1,920.56 0 CO #9 - Repair of Electrical Conduit & Wiring $3,242.41 $3,242.41 0 CO #9 - Tamperproof Fasteners for Benches $779.73 $779.73 0 CO #9 - Modification of HDPE Top Rails $10,723.88 $10,723.88 0 CO #9 - Acceleration of HDPE Top Rail Delivery $484.00 $484.00 0 CO #9 - Repair of Trestle WWF X $195.04 $195.04 0 CO #9 - Repair of Trestle Notch X $325.66 $325.66 0 CO #9 - Bollards X $420.77 $420.77 0 CO #9 - Nav Light Bases X $37.36 $37.36 0 CO #9 - Two Extended Wind Shelters $8,757.38 $8,757.38 0 to E E 3 Cn d m c d E t v Q Change Order No.1, Exhibit A Page 1 of 1 Printed: 10/6/2017 Packet Pg. 187 7.5.a CO #10 - 3000KW Heaters $831.51 $831.51 0 CO #10 - Tamperproof Fasteners for Benches in Shelters $153.91 $153.91 0 CO #10 - HDPE Supports for Sink Skirting $1,191.18 $1,191.18 0 CO #10 - Top Rail Support at SW Corner of Trestle $779.42 $779.42 0 CO #10 - Waterline Modifications $2,997.53 $2,997.53 0 CO #10 - Extra HPC Repair at Cleaning Station Waterlines $222.46 $222.46 0 CO #11 - Additional Welding of ADA Railings $1,733.09 0 CO #11 - Steel Spacers at Pier Bay #12 $1,923.79 0 CO #11 - Anchor Bolt Replacement SE Corner of Pier $107.20 0 CO #I I - Tamperproof Fastener Shipping $104.80 0 CO #11 - Deleted Work C/O #1, Light Fixture Removal -$1,198.44 0 CO #12 - Contract Reconciliation $1,291.10 $1,291.10 0 Total Adjustment $1,281,974.55 $1,297,426.99 Sales Tax @ 9.8% $125,633.51 $127,147.85 Total Contractor Expenses Plus Tax 1 $1,407,608.06 $1,424,574.84 98 Expenses - Consultants & Agencies To Date Total Amount Status Advertising - Consultant and Contractor $1,350.56 $1,350.56 Interpretive Signs (including tax) - City/WDFW (contract was underspent) $20,399.75 $20,399.75 Underspent by $4600.25 Cable and Hardware - Fastenal $1,104.76 $1,104.76 Monofilament Holders $274.47 $274.47 Project Management - WDFW $10,000.00 $10,000.00 Engineering - Berger ABAM $150,433.14 $154,000.00 Engineering - Berger ABAM (Original contract not fully expended) -$1,957.86 Engineering - Berger ABAM, Contract Amendment $10,000.00 Estimated Legal - McMillen Jacobs Associates $4,347.50 $5,000.00 Legal - McMillen Jacobs Associates, Contract Amendment $5,000.00 Estimated Construction Management - HWA $122,413.18 $148,437.00 Construction Management - HWA, Contract Amendment $15,000.00 Estimated Testing Lab Services - Krazan (contract was underspent) $30,551.00 $30,551.00 Underspent by $11,979 City Staff Time Thru August 2017 $114,962.87 $114,962.87 Additional City Staff Time Thru End of Project $12,000.00 Estimated for 3 additional months of construction Total Consultant Expenses $455,837.23 $526,122.55 Total Funding Available Total Current $1,900,000.00 Total Expenses Determined & Estimated Total Expenses to Date $1,863,445.29 Total Expenses - Including Current Contractual Obligations & Future City Staff Time Estimates $1,950,697.39 Management Reserve $24,302.61 Total Expenses + Contingency $1,975,000.00 Current Remaining Funding $36,554.71 Project Funding Deficit - Including Current and Estimated Contractual Obligations & Future City Staff Time Estimates -$75,000.00 M E E 3 to d m m E t Q Change Order No.1, Exhibit A Page 1 of 2 Printed: 10/6/2017 Packet Pg. 188 7.6 City Council Agenda Item Meeting Date: 10/10/2017 Critical Area Ordinance Section 23.40.220(c)(7)(a) (15 min.) Staff Lead: Councilmember Diane Buckshnis Department: City Council Preparer: Sandy Chase Background/History Council approved the Critical Area Ordinance Staff Recommendation None Narrative Current restoration project section 23.40.220(c)(7)(a) specifies only a length of 1,500 square feet can be restored over a three year time frame. The reason for the restriction was to help ensure that large areas or phases of restoration projects would have some governmental oversight and be reviewed for consistency with best management practices. However, the limitation also means that some larger restoration projects cannot proceed without special studies, which adds to the schedule and costs for restoration. Some language suggestions have been: "The restriction on the area of work does not apply to bona fide habitat restoration projects with restoration work conducted by a qualified organization and/or individuals experienced in habitat restoration techniques." Removing the limit and/or time frame allows for the removing of invasive or non-native species in order to plant or maintain native shrubs and trees. The suggested new language could help fix the CAO problem of limiting invasive plant removal beyond 1500 square feet during habitat restoration projects. Of note, is that plant removal in critical areas needs to be restricted due to erosion and soil damage, but that concern is not necessarily reasonable for habitat restoration projects where the invasive plants are being REPLACED with native plants. It is believed that putting unnecessary restrictions on this type of habitat restoration projects is counter to the CAO and SMP stated goal to encourage habitat restoration. Voluntary restoration work will not occur if it requires people to go thru the CAO critical area permitting process, and that is to the detriment of enhancing our critical areas in Edmonds. Another suggestion is that the language proposed for future restoration projects, (especially by individuals who maybe don't quite fit into the EarthCorps model of working with the City), is something that needs a more institutional integration beyond a line in the CAO. So instead of just "these restrictions don't apply to bona fide restoration projects," more deliberate language could be: "these restrictions don't apply to habitat restoration projects that: A) are managed by an organization or individual who has a standing agreement with the City; or B) have been approved by the appropriate Packet Pg. 189 7.6 city department," or something along those lines. This would offer some direction to individuals interested in projects. It would give folks the option of partnering with previously approved qualified organizations while also allowing projects to be judged on a case by case basis, and it would ensure that projects and those proposing them have City oversight before being implemented. Of course a criteria would still need to be developed, and all this would totally depend on capacity within the appropriate city department (whether it be Parks or Planning) to evaluate the credentials of those proposing projects and create formal agreements for participating organizations. Another option is to use a different threshold, such as 3000 square feet instead of 1500 before requiring a detailed critical area review. Any updates to the critical area regulations must first go through a public process that includes a public hearing and recommendation by the Planning Board, as well as submittal of a draft proposal to the state for amending the regulations. At this time, the PPP Committee may ask the Planning Board to consider the PPP Committee's suggestion and bring back a recommendation to the full City Council. Alternatively, the PPP Committee could choose to recommend that the full City Council formally ask the Planning Board to consider this issue and provide a recommendation. Packet Pg. 190 8.1 City Council Agenda Item Meeting Date: 10/10/2017 Permit Software System Professional Services Agreement (PSA) (10 min.) Staff Lead: Rob Chave / Brian Tuley Department: Planning Division Preparer: Rob Chave Background/History The City's current permit tracking system is PermitTrax by Bitco Software. This system has been used by the City since 2006. Staff Recommendation Forward the contract and budget recommendations to the full City Council for approval. Narrative Edmonds has been using its current system, Bitco/PermitTrax, for a little over 10 years. In general, it has worked well and has given us the ability to electronically track permits and inspections. However, the company is still quite small and is largely maintained and enhanced by one person, the owner. We have significant concerns about being able to move forward to fully link our permit system to an online portal, integrate electronic plan review and submittal, and further expand our existing system to take advantage of new technologies. A significant shortcoming of the existing system is its lack of full intregration with our GIS land records, and this will not change going forward. Given our overall concerns for the future, we believe that this is the time to invest in new technology - especially given the historically high revenues we have been experiencing these last few years. Edmonds has always looked to invest in technology to improve efficiency and service, and this is an opportunity that arises now. To pursue this course of action, we obtained a budget commitment from the City Council for $250,000 (spread over 2017-2018) and issued a request for proposals for a new permit system. We received 7 proposals and narrowed that to 3 finalists for demonstrations/presentations. After the presentations, we narrowed the preferred vendors to 2, Accela and Superion/TRAKiT, for further review and negotiation, including reference checks with jurisdictions in our region. We did not receive a response to the RFP from our current system vendor, Bitco Software. We therefore compared the respondents' capabilities to our current PermitTrax system, treating it as a "no action" alternative. Accelo: Accela references did not check out well. The local user group includes, among others, King County, Seattle, and Tacoma. They have had issues with support, installation, and cost. King County has been working with Accela for over 7 years without a fully operating system (not entirely Accela's fault, given Packet Pg. 191 8.1 King County's process complexities, but Accela has not been up to the task). Tacoma saw a massive increase in annual support costs after their initial contract expired, and King County saw the same. Another City, Marysville, moved from Accela to Trackit because Accela's costs were becoming excessive. Given our own experience with Accela's legislative management software (MinuteTraq), the reported support and installation problems echo what we experienced during the MinuteTraq installation and roll -out. For example, Accela never successfully completed the conversion of our past board/commission meetings and agenda items. Combined with the identified cost issues we have decided not to pursue the Accela system for our permitting solution. Superion/TRAKiT. This system is used by a number of cities in our region, including Sammamish, Shoreline, Bellingham, Kirkland, Issaquah, and Marysville. They appear to have had success installing and running the system. It interfaces with our finance (Eden), document management (Laserfische) and GIS systems, and provides a web portal front-end for customers. They will also include an interface to the State's business license system at no additional cost. Their total discounts offered to us have brought the product into our price range if we add a relatively small increment to our project budget (see below). Ongoing support and maintenance costs appear to have been stable for other customers (as opposed to Accela's, which have substantially increased over time). This is particularly true for the in-house hosting option, which is our choice for implementation. The in-house hosting solution will provide more control over our data and avoid the cost risk with having an outside vendor controlling that part of the system. Cost: The total cost to obtain and install the TRAKiT system would be: License fees $ 110,580 Services $189,340 Total $ 299,920 Ongoing maintenance is $ 38,800 per year. The quote above includes a discount of $ 91,420 ($83,420 in license fees and $8,000 in services) off their normal price for the system. There is one additional item that they did not include in their price quote which we will in fact need - an interface that would enable us to use a credit card machine at the public counter to pay for permits. This is a significant efficiency item, as otherwise we would have to enter all credit card information manually after enabling another system to actually run the credit card through a service to verify the charge. The cost of adding this interface is $7,500 one-time plus $1,400 in setup costs, with an annual maintenance add of $1,500. In addition to the software and service costs identified above, implementation of a new permit system will require enhancements to our IT infrastructure. The Superion / TRAKiT solution runs as virtual machines within the Edmonds VMWare virtual environment. Hosting the system on premise requires 4 high power servers. This hardware upgrade increases RAM to accommodate the new virtual machines and provides redundancy across the server farm. In this way, if one physical server fails, the virtual servers can be run on one of the other two physical servers in City Hall. This provides improved reliability and stability for what has become a critical part of the City's IT infrastructure. To summarize, all costs to implement the new system are: Packet Pg. 192 8.1 VENDOR/SYSTEM: Superion/TRAKiT TOTAL COST OF SYSTEM: $ 308,820 TOTAL COST OF SERVER ENHANCEMENTS: $34,700 TOTAL COST OF ANNUAL MAINTENANCE: $ 40,300* * The maintenance cost will need to be added into the 2018 budget, although the net increase would only be $24,300 since $16,000 is already budgeted for annual Bitco maintenance. Since Council had already approved a budget of $250,000 for the new permit system, the total additional amount needed is $343,520 - $250,000 = $93,520. This would be a one-time cost. As already noted, ongoing costs for maintenance will total an additional $24,300. The additional $93,520 will need to be in the form of an additional budget allocation. Given that we already have $125,000 budgeted for 2017 with an additional $125,000 in 2018, the additional $93,520 could be allocated from the 2018 budget. However, we will need to have the Council's approval in order to go forward with contracting with Superion for the TRAKiT system. The hardware costs will need to take place in 2017 so that the system installation and configuration services can begin. The contract and services documents from Superion are attached. These have been approved -as -to - form by the City Attorney's office. Attachments: Exhibit 1: Order form and contract for TRAKiT permit software Exhibit 2: Superion Statement of Work for TRAKiT permit software Packet Pg. 193 8.1.a ORDER By the signatures of their duly authorized representatives below, the Superion entity identified below and the customer identified below ("Customer"), intending to be legally bound, agree to all of the provisions of this Order, and agree that this Order represents a separate contract between such Superion entity and Customer, effective upon the latest date shown on the signature page below. ("Order Execution Date"). This Order incorporates and is governed by all of the terms of the Superion Standard Terms and Conditions attached hereto as Exhibit A ("SST') as if the Superion entity was "Superion" and Customer was "Customer" thereunder. Capitalized terms not defined in this Order have the meaning given them in the SST. The terms and conditions contained in this Order, including prices, will be honored as set forth herein, provided the Order is fully executed and delivered by November 28, 2017. Superion, LLC 1000 Business Center Dr. Lake Mary, FL 32746 City of Edmonds, WA 121 5`h Avenue North Edmonds, WA 98020 By: By: Print Name: Print Name: Print Title: Print Title: Date Signed: Date Signed: CUSTOMER # SUPERION ORDER # 00028888 Packet Pg. 194 8.1.a SOLUTION AND RELATED INFORMATION 1. SOLUTION: Superion TRAKiT Community 2. INITIAL TERM: [Perpetual] 3. SCOPE OF USE: a. DESIGNATED LOCATION(s): 121 5tn Avenue North, Edmonds, WA 98020 b. NUMBER OF NAMED AUTHORIZED USERS: 25 Concurrent User licenses of the Solution purchased by Customer and installed on unlimited workstations. c. REGION: UNITED STATES 4. LICENSE AND INITIAL SUPPORT FEES: See Project Cost Supplement Software Notes: 1. Interfaces are interfaces only. Customer is responsible for obtaining the applicable software, hardware and system software from the appropriate third party vendor. 2. Support for the Initial Support Term is provided at no charge. The Support Fee in the table above represents the support fee for the first Renewal Support Term and is payable only if Customer elects to extend the term through the first Renewal Support Term as provided for in Section 9.3 of the SST. 3. . 5. SUPPORT TERM: a. INITIAL SUPPORT TERM: 12 months from the Order Execution Date. b. RENEWAL SUPPORT TERM(S): Additional one year renewal periods commencing upon the expiration of the Initial Support Term (or anniversary thereof). 6. SERVICES: See Protect Cost Supplement Services Notes: 1. This price is a "not to exceed" amount based on the Services selected by Customer at the time of the execution of this Agreement. The amount listed above will change if additional services are necessitated by changes to the scope of the project, or if Customer chooses additional services, software, or hardware following the execution of this Agreement, or if Customer otherwise fails to cooperate with SunGard Public Sector and/or perform its responsibilities as reasonably required through the course of the project. 2. Travel and living expenses are additional and will be billed monthly as Superion renders the services. 7. PAYMENT TERMS: License Fee: 100% on the Execution Date Annual Support Fees: Support Fees are due thirty (30) days prior to the commencement of the Renewal Support Term for which such fees are being remitted. Project Management, Technical Services, and Consulting: Due as incurred monthly Installation: On invoice, upon completion Training Fees: Due as incurred monthly Packet Pg. 195 8.1.a Custom Development Fees: 50% on the Execution Date; 50% due upon invoice, upon completion Travel and Living Expenses: Travel and living expenses are in addition to the prices quoted above and will be invoiced as incurred and shall be governed by the Superion Corporate Travel Expense Guidelines attached hereto. APPLICABLE TAXES ARE NOT INCLUDED IN THE PROJECT COST SUPPLEMENT, AND, IF APPLICABLE, WILL BE ADDED TO THE AMOUNT IN THE PAYMENT INVOICE(S) BEING SENT SEPARATELY TO CUSTOMER. 8. ADDRESSES: a. CUSTOMER ADDRESS FOR INVOICES b. CUSTOMER ADDRESS FOR NOTICES 121 5t" Avenue North, Edmonds, WA 98020 121 5t" Avenue North, Edmonds, WA 98020 c. CUSTOMER ADDRESS FOR SOFTWARE SHIPMENT: 121 5t" Avenue North, Edmonds, WA 98020 d. SUPERION'S ADDRESS FOR NOTICES: Superion, LLC. Attn: Legal Counsel 1000 Business Center Drive Lake Mary, FL 32746 9. LIABILITY CAP: The greater of ten thousand US dollars ($10,000) or the License Fee actually paid by Customer to Superion under this Order 10. SPECIFIED CONFIGURATION: Host(s) or client server configuration(s) and/or combinations of host(s) and client server configuration(s) within the United States of America for which Superion supports the Solution. Customer acknowledges that certain Solutions software may require specific host or client configurations. Customer, as soon as reasonably practicable, will provide a detailed written description of the specified configuration so that Superion can confirm that it is a configuration on which Superion supports use of the Solution. 11. OTHER TERMS APPLICABLE TO THIS ORDER: • PROJECT COST SUPPLEMENT • SUPPORT SUPPLEMENT • SUPERION TRAVEL EXPENSE GUIDELINES • SUPERION STANDARD TERMS — EXHIBIT A • SCOPE OF WORK - EXHIBIT B Packet Pg. 196 8.1.a PROJECT COST SUPPLEMENT Quote Date 0 U. C 17 11/28 SC-00028888 08Y28120/2017 License Fees Community Development Product Code Product Name TRAK-CC-ETRAK eTRAKiT Credit Card API TRAK-CCMMDEV-UL TRAKiT9 Community Development Suite User License TRAK-ENFLIB TRAKiT Enforcement Library TRAK-ETRAKIT eTRAKiT Citizen Portal TRAK-GISSTD TRAKiT GIS Standard Engine TRAK-IT-CODE iTRAKiT Code TRAK-IT-INSPECT iTRAKiT Inspect TRAK-LF-IF TRAKiT Laserfiche API TRAK-PLNLIB TRAKiT Plan Correction Library TRAK-PMTLIB TRAKiT Permit Form Library Professional Services Community Development Quantity 1 25 1 1 1 1 1 1 1 1 Totals: Ext Price 5,000-00 112,500.00 1,000,00 20,000.00 12,500.00 12,500.00 12,500.00 15,000.00 1,000-00 2,000.00 $194,000.00 Maintenance 1,00000 22,500.00 200-00 4,000.00 2,500.00 2,500-00 2,500-00 3,000-00 200,00 400-00 $38,800.00 Product Code Product Name Proj Mgmt Installatlon Tech Svcs Training Impl Svcs Consulting Development Total Services TRAK-ADWTR TRAKiT9 AdministratorlReport Writing Training Ext Price: - - - 3.840.00 - - - 3,840.00 TRAK-CC-ETRAK eTRAKiT Credit Card API Ext Price: - 1,750-00 - - - - - 1,750-00 TRAK-ENFLIB TRAKiT Enforcement Library Ext Price: - - - - - - 1,600.00 1,600-00 TRAK-ETRAKIT-L3 eTRAKiT Citizen Portal Configuration Ext PripB: 160.00 1.750-00 12.800.00 520,00 3.000.00 18.030,00 Packago-1.3Premium TRAK,GISSTD-S TRAKiT CIS Standard Engine Services Ext Pf1Pe: - - 17,600.00 320.00 - - - 17.920-00 TRAK-GTUR GeoTRAK Update Routine Ext Pam: 3,200.00 6,000-00 9,200.00 TRAK•IT•IS iTRAKiT Services Ext Price: - - 8,000.00 640.00 - - - 8,640-00 TRAK-LF-IF-8 TRAKiT LaserfichaAPI Semces Ext Price: - - 4,000.00 - - - 4,000.00 TRAK-PLNLIB TRAKiT Ran Correction Library Ext Price: - - 1.600.00 1,600-00 TRAK PMTLIB TRAKiT Permit Form Library Ext Price: - - - - - - 1,600.00 %600-00 Community Development Product Code Product Name Proj Mgmt Installation Tech Svcs Training Impl Svcs Consulting Development Total Services TRAK-CD-1.1 TRAKITO Community Development Initiation-L1 Ext Price: - %400-00 9.600.00 - 11,000.00 TRAK-CD-D-1 TRAKiTOCommunity Development Discovery- -1 Ext Price: 5,440-00 640.00 - 9.000.00 - 1500.00 TRAK•CD•C-1 TRAKiTSCommunity Development Ext Price: - - - - - 24,000.00 - 24,0D0.00 Configuration-1-1 TRAK-CD-7.1 TRAKi79Community Development Testing•L1 Ext Price: 11,200.00 - - 5,120.00 - 16.000-00 - 32.320.00 TRAK-CD-EG-1 TRAKiT9Community Development Educe lion & Cx Ext Price: 3,84D.00 - - 5,120.00 - 3.200-00 - 12,160.00 Live-L1 Totals: ......... .... $23,640,00 $4,900,00 $42.400,00 $16,000,00 $61,800.00 $13,800,00 $162,740.00 Services Product Coda Product Hama Proj Mgmt Installation Tech Svcs Training Impl Svcs Consulting Development Total Services P3-CD Custom Development: WA State Licensing Board Ext Price: 8,000.00 8,000.00 Interface for Contractor Licensing Verification PS -CV Legacy Data Conversion: Permit Trex from Bilco Ext Price: 12.000,00 12,000.00 (Contacts, Permits. Project records) High Level Esfiamte PS -CV Land Data Converslom County Assessor & GIS Ext Price: 7.000.00 7,000.00 Data PS -ID Finance Interface: Tyler Eden (via standard end Ext Price: 7,600.00 7.600.00 of day batch export) Totals: - $34,600.0D $34,60D.00 Product & Services License Fees: $194,000.00 Professional Services: $197,340.00 Subtotal: $391,340.00 Discounts License Fee Discount: $83,420.00 Professional Services Discount: $8.000.00 Product S Services Totals Net License Fees: $110,580.00 Net Professional Services: $189.340.00 Total: $299,920.OQ� Maintenance: S38.800.00 Packet Pg. 197 8.1.a PROJECT COST SUPPLEMENT CONTINUED License Fees Community Development Product Code Product Name Quantity Ext Price Maintenance TRAK-CC-IF TRAKiT Credit Card Reader Interface 1 7,500.00 1,500.00 Totals: $7,500.00 $1,500.00 Professional Services Community Development Product Code Product Name Proj Mgmt Installation Tech Svcs Training Impl Svcs Consulting Development Total Services TRAK-CC-IF TRAKiT Credit Card Reader Interface Ext Price: - 1,400.00 - - - - - 1,400.00 Totals: $1,400.00 $1,400.00 Product & Services License Fees: $7,500.00 Professional Services: $1,400.00 Subtotal: $8,900.00 Discounts License Fee Discount: $3,225.00 Product & Services Totals Net License Fees: $4,275.00 Net Professional Services: $1,400.00 Total: $5,675.00 Maintenance: $1,500.00 Comments: The City of Edmonds, WA has identified the TRAKiT Credit Card Reader API for over the counter credit care payments with TRAKiT to be purchased within 1 year of contract execution. The same licensing discount has been applied to this product. Packet Pg. 198 8.1.a SUPPORT SUPPLEMENT 1. Superion shall provide to Customer, during Superion's support hours as set forth in the Support Standards below ("Support Hours"), telephone assistance regarding Customer's proper and authorized use of a new edition of a Solution or Custom Modification (the "Release"), as applicable. Superion shall provide to Customer, during the Support Hours, commercially reasonable efforts in solving Errors reported by Customer in accordance with this Order. Customer shall provide to Superion reasonably detailed documentation and explanation, together with underlying data, to substantiate any Error and to assist Superion in its efforts to diagnose, reproduce and correct the Error. These support services shall be provided by Superion at Customer location(s) if and when Superion and Customer agree that on -site services are necessary to diagnose or resolve the problem. If a reported Error did not, in fact, exist or was not attributable to a defect in the Solution or an act or omission of Superion, then Customer shall pay for Superion's investigation and related services at Superion's standard professional services rates. Customer must provide Superion with such facilities, equipment and support as are reasonably necessary for Superion to perform its obligations under this Order, including remote access to the Specified Configuration. 3. Customer shall promptly install and/or use any Release provided by Superion to avoid or mitigate a performance problem or infringement claim. All modifications, revisions and updates to the Solution shall be furnished by means of new Releases of the Solution and shall be accompanied by updates to the Documentation whenever Superion determines, in its sole discretion, that such updates are necessary. 4. Support Surcharge Imposed In Certain Instances: At the commencement of any Renewal Support Term where Customer is operating on a Solution version that is more than two (2) general release versions behind the then -current release for any Solution, Superion will assess a ten percent (10%) surcharge over and above the support fee for that Renewal Support Term, with such surcharge to be imposed on a prorated basis for the portion of the Renewal Support Term that Customer remains on a general release version that is more than two (2) releases behind the then -current release of the Solution in question. Once Customer is using a release that is no more than two (2) general release versions behind the then -current release, the support surcharge will be removed on a prospective basis, as of the date that Customer is using the release that is no more than two (2) general release versions behind the then -current release. Packet Pg. 199 8.1.a Support Standards Support Hours: Hours During Which Superion's Telephone Support Will be Available to Customer in Connection with the Provision of Maintenance: Unless otherwise noted in the Order as to Support Type, support hours are Monday through Friday, 8:00 A.M. to 5:00 P.M. Customer's Local Time within the continental United States, excluding holidays ("5x9"). II. Targeted Response Times. "Notification" means a communication to Superion's help desk by means of: (i) Superion's web helpline; (ii) the placement of a telephone call; or (iii) the sending of an e-mail, in each case, in accordance with Superion's then -current policies and procedures for submitting such communications. With respect to Superion's support obligations, Superion will use diligent, commercially reasonable efforts to respond to Notifications from Customer relating to the Solution or Custom Modifications identified in the Order in accordance with the following guidelines with the time period to be measured beginning with the first applicable Superion "Telephone Support" hour occurring after Superion's receipt of the Notification: Priority Description Response Goal* Resolution Goal* Urgent A support issue shall be considered Urgent Superion has a Although resolution 1 when it produces a Total System Failure; stated goal to times vary meaning Superion's Solution/Custom respond within 60 depending on the Modification is not performing a process that minutes of the exact issue and has caused a complete work stoppage. issue being customer reported and have environment, a resolution plan Superion has a within 24 hours. stated goal to resolve an urgent Critical A support issue shall be considered Critical Superion has a 2 when a critical failure in operations occurs; stated goal to issue within 24 meaning Superion's Solution/Custom respond within two hours or provide a Modification is not performing a critical hours of the issue resolution plan with process and prevents the continuation of being reported. urgent issues within basic operations. Critical problems do not 24 hours of the have a workaround. This classification does issue being not apply to intermittent problems. reported. A resolution plan Non- A support issue shall be considered Non- Superion has a Critical Critical when a non -critical failure in stated goal to 3 operations occurs; meaning Superion's respond within four details the steps Solution/Custom Modification is not hours of the issue necessary to performing non -critical processes, but the being reported. understand and system is still usable for its intended purpose possibly resolve the or there is a workaround. issue. Minor A support issue will be considered Minor Superion has a 4 when the issue causes minor disruptions in stated goal to the way tasks are performed, but does not respond within 24 affect workflow or operations. This may hours of the issue include cosmetic issues, general questions, being reported. and how to use certain features of the system. * Measured from the moment a Case number is created. As used herein a "Case number" is created when a) Superion's support representative has been directly contacted by Customer either by phone, email, in person, or through Superion's online support portal, and b) when Superion's support representative assigns a case number and conveys that case number to the Customer. Customer must provide remote access to its facility using a Superion approved remote access client so that Superion can perform the support obligations and/or services under this Order,- and will provide appropriate security access and accounts for Superion staff and each session participant. Packet Pg. 200 8.1.a SUPERION TRAVEL EXPENSE GUIDELINES Superion will adhere to the following guidelines when incurring travel expenses: All arrangements for travel are to be made through the Superion Corporate Travel Agent unless other arrangements have been made with the Customer and are documented in writing. AIR TRAVEL — Superion will use the least expensive class of service available with a minimum of seven (7) day, maximum of thirty (30) day, advance purchase. Upon request, Superion shall provide the travel itinerary as the receipt for reimbursement of the airfare and any fees. Fees not listed on the itinerary will require a receipt for reimbursement. Trips fewer than 250 miles round are considered local. Unless a flight has been otherwise approved by the Customer, Customer will reimburse the current IRS approved mileage rate for all local trips. LODGING —Superion will use the most reasonable accommodations possible, dependent on the city. All food items, movies, and phone/internet charges are not reimbursable. RENTAL CAR — Compact or Intermediate cars will be required unless there are three or more Superion employees sharing the car in which case the use of a full size car is authorized. Gas is reimbursable however, pre -paid gas purchases will not be authorized and all rental cars are to be returned with a full tank of gas. Upon request, receipts for car rental and gas purchases will be submitted to Customer. Superion shall decline all rental car insurance offered by the car rental agency as staff members will be covered under the Superion auto insurance policy. Fines for traffic violations are not reimbursable expenses. OTHER TRANSPORTATION — Superion staff members are expected to use the most economical means for traveling to and from the airport (Airport bus, hotel shuttle service). Airport taxi or mileage for the employee's personal vehicle (per IRS mileage guidelines) are reimbursable if necessary. Upon request, receipt(s) for the taxi will be submitted to Customer. Proof of mileage may be required and may be documented by a readily available electronic mapping service. The mileage rate will be the then -current IRS mileage guideline rate (subject to change with any change in IRS guidelines). OTHER BUSINESS EXPENSES — Parking at the airport is reimbursable. Tolls to and from the airport and while traveling at the client site are reimbursable. Tipping on cab fare exceeding 15% is not reimbursable. Porter tips are reimbursable, not exceeding $1.00 per bag. Laundry is reimbursable when travel includes a weekend day or Company Holiday and the hotel stay is four nights or more. Laundry charges must be incurred during the trip and the limit is one shirt and one pair of pants/skirt per day. With the exception of tips, receipts shall be provided to Customer upon request for all of the aforementioned items. MEALS — Standard per Diem. Subject to change due to cost of living. Packet Pg. 201 8.1.a EXHIBIT A SUPERION STANDARD TERMS These Superion Standard Terms ("SST") may be incorporated into one or more orders referencing these SST (each, an "Order") Each Order, together with these SST, shall form a separate agreement (this "Agreement"), by and between the Person identified on the Order ("Customer") and the Superion Company identified on the Order ("Superion"), applicable to the proprietary solution identified on the Order (the "Solution"), as such Solution may be modified, revised and updated from time to time. Only the Customer and Superion entities that execute the Order will be liable for the obligations under that Order. Each Order will be effective upon the latest date shown on the signature page of the Order ("Order Execution Date") 1. Scope. Customer may use the Solution only in the ordinary course of Customer's internal business operations for the benefit of Customer and only in accordance with the terms on the Order, the Documentation, this Agreement, including the Scope of Use. Customer shall be liable for any breach of the terms of this Agreement by any persons given access to the Solution by Customer. 2. Specified Configuration. Customer shall, at its expense, procure and maintain the computer hardware, systems software and other items required for use of, or access to, the Solution, including those described in the Order and Documentation (the "Specified Configuration") and for updating the Specified Configuration in accordance with Superion's published updates. If not yet completed, Customer shall complete its procurement and installation of the Specified Configuration prior to the scheduled start of implementation. Customer shall devote all equipment, facilities, personnel and other resources reasonably necessary to begin using the Solution in production on a timely basis as contemplated by this Agreement and satisfy any Customer requirements necessary for Superion to complete the professional services described in Section 6. Superion is not responsible for any delays or additional fees and costs associated with Customer's failure to timely perform its obligations under this Section 2. 3. Payments. 3.1 Fees. Customer shall pay to Superion the fees stated in the Order, in accordance with the payment terms stated on the Order. Superion shall invoice all other fees, as and when incurred. All invoices shall be sent to Customer's address for invoices stated on the Order. Except as otherwise specified on the Order, Customer's payments shall be due within thirty (30) days after the invoice date. A late payment fee at the rate of 12% per year (or, if lower, the maximum rate permitted by applicable law) shall accrue on any amounts thirty (30) days past due and unpaid by Customer to Superion, except for Disputed Amounts. Superion may not increase the fees and charges payable under this Agreement, unless otherwise stated in this Agreement or in the Order. Except as provided in Section 4.2(c), all fees and other amounts paid by Customer under this Agreement are non-refundable. 3.2 Taxes. The fees and other amounts payable by Customer to Superion under this Agreement do not include any taxes, duties, levies, fees or similar charges of any jurisdiction ("Taxes") that may be assessed or imposed in connection with the transactions contemplated by this Agreement, excluding only taxes based upon Superion's net income. Customer shall directly pay any such Taxes assessed against it, and Customer shall promptly reimburse Superion for any such Taxes payable or collectable by Superion. 3.3 Certain Remedies for Non-payment. If Customer fails to pay to Superion, within ten (10) days after Superion makes written demand therefor, any past -due amount payable under this Agreement (including any applicable late payment fee) that is not a Disputed Amount, in addition to all other rights and remedies which Superion may have, Superion may, in its sole discretion and with further notice to Customer stating the suspension date, suspend performance of any or all of its obligations under this Agreement (other than Section 5). Superion shall have no liability for Customer's use of the Solution until all such past -due amounts and any applicable reinstatement fees are paid in full. Warranties, Covenants and Limitations 4.1 Compliance with Laws. Superion shall comply with all laws, enactments, orders and regulations applicable to it as the provider of services under this Agreement. Customer shall comply with all laws, enactments, orders and regulations applicable to it as the recipient and user of services under this Agreement. 4.2 No Infringement. Superion shall indemnify and defend Customer against, any third -party claim asserting that the Solution, as and when made available to Customer by Superion and when properly used for the purpose and in the manner specifically authorized by this Agreement, infringes upon (i) any patent issued as of the date of this Agreement by a country that is a signatory to the Paris Convention, (ii) any copyright of any country that is a member of the Berne Convention as of the date of this Agreement, or (iii) any trade secret or other proprietary right of any Person (collectively, 1P Rights"). Superion shall have no obligation under this Section 4.2 unless Customer promptly gives notice to Superion within ten (10) days after the date Customer first receives notice of the applicable infringement claim (provided that later notice shall relieve Superion of its liability and obligations under this Section 4.2 only to the extent that Superion is prejudiced by such later notice) and allows Superion to have sole control of the defense or settlement of the claim. Customer may monitor any such litigation or proceeding at its expense, using counsel of its choosing. The remedies provided in this Section 4.2 are the sole remedies for a claim of infringement or misappropriation hereunder. If any applicable infringement claim is initiated, or in Superion's sole opinion is likely to be initiated, Superion may at its option and expense: Packet Pg. 202 8.1.a (a) modify or replace all or the allegedly infringing part of the Solution so that it is no longer allegedly infringing, provided that the functionality does not change in any material adverse respect; or (b) procure for Customer the right to continue using the allegedly infringing part of the Solution; or (c) remove all or the allegedly infringing part of the Solution, and (i) if Customer has paid a one-time upfront initial license fee for the applicable Solution, refund to Customer the corresponding portion of the license fee paid by Customer to Superion for the applicable Solution, less a reasonable rental charge equal to one - sixtieth (1/60) of the initial license fee for each month of use following the Order Execution Date, or (ii) if Customer is paying for the use of the Solution on a recurring basis, refund to Customer the corresponding portion of the unused recurring fee(s) paid by Customer to Superion with respect to the applicable Solution, and in each such case this Agreement shall terminate with respect to the Solution or part thereof removed. 4.3 Harmful Code. Using a recent version of a reputable virus -checking product (to the extent commercially available), Superion will check the Solution, as well as any systems used to deliver the Solution, for any viruses, worms or similar harmful code ('Harmful Code") and will use commercially reasonable efforts to eliminate any such Harmful Code that Superion discovers. 4.4 Exclusion for Unauthorized Actions. Superion is not liable under any provision of this Agreement for any performance problem, claim of infringement or other matter to the extent attributable to any unauthorized or improper use or modification of the Solution by or on behalf of Customer, any unauthorized combination of the Solution with other software or services (other than as specified in the Specified Configuration), any use of any version of the Solution other than the Supported Release, a failure to subscribe to support services if then offered for the Solution, any Third -Party Hardware or Third -Party Services, and Third -Party Software or Open Source Software (except as set forth in Sections 4.10 and 4.12), any wrongful act or omission by Customer, its Affiliates or its customers or any breach of this Agreement by Customer. 4.5 Force Majeure. Neither party shall be liable for, nor shall either party be considered in breach of this Agreement due to, any failure to perform its obligations under this Agreement (other than its payment obligations, which shall be suspended only for so long as the force majeure event renders Customer unable by any means to transmit payments when due hereunder) as a result of a cause beyond its control, including any act of God or a public enemy or terrorist, act of any military, civil or regulatory authority, change in any law or regulation, fire, flood, earthquake, storm or other like event, theft or criminal misconduct by unrelated third parties, disruption or outage of communications (including the Internet or other networked environment), power or other utility, unavailability of supplies or any other cause, whether similar or dissimilar to any of the foregoing, which could not have been prevented by the non -performing party with reasonable care. 4.6 Disclaimer. EXCEPT AS STATED IN SECTIONS 4, 6.5 AND 9.55, THE SOLUTION, DOCUMENTATION AND SERVICES ARE PROVIDED "AS IS," AND ALL OTHER REPRESENTATIONS, WARRANTIES, TERMS OR CONDITIONS, ORAL OR WRITTEN, EXPRESS OR IMPLIED, ARISING FROM COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE, QUALITY OF INFORMATION, QUIET ENJOYMENT OR OTHERWISE (INCLUDING IMPLIED WARRANTIES, TERMS OR CONDITIONS OF MERCHANTABILITY, SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON-INTERFERENCE, OR NON - INFRINGEMENT) ARE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EXCLUDED FROM THIS AGREEMENT. 4.7 Limitations Cap. EACH PARTY'S TOTAL LIABILITY UNDER THIS AGREEMENT SHALL UNDER NO CIRCUMSTANCES EXCEED THE LIABILITY CAP. 4.8 Consequential Damage Exclusion. UNDER NO CIRCUMSTANCES SHALL EITHER PARTY (OR ANY OF ITS AFFILIATES PROVIDING OR RECEIVING THE SOLUTION, SERVICES OR OTHER SOFTWARE UNDER THIS AGREEMENT) BE LIABLE TO THE OTHER OR ANY OTHER PERSON FOR LOSSES OR DAMAGES WHICH FALL INTO ANY OF THE FOLLOWING CATEGORIES: (a) LOST REVENUES, (b) LOST PROFITS, (c) LOSS OF BUSINESS, (d) TRADING LOSSES, (e) INACCURATE DISTRIBUTIONS OR (f) ANY INCIDENTAL, INDIRECT, EXEMPLARY, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES OF ANY KIND, INCLUDING ANY OF THE FOREGOING LOSSES OR DAMAGES RESULTING FROM CUSTOMER'S USE OF THE SOLUTION OR SERVICES PROVIDED HEREUNDER, OR ARISING FROM ANY BREACH OF THIS AGREEMENT OR ANY TERMINATION OF THIS AGREEMENT, WHETHER SUCH LIABILITY IS ASSERTED ON THE BASIS OF CONTRACT, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY) OR OTHERWISE AND WHETHER OR NOT FORESEEABLE, EVEN IF THE RELEVANT PARTY HAS BEEN ADVISED OR WAS AWARE OF THE POSSIBILITY OF SUCH LOSS OR DAMAGES. FOR PURPOSES OF CLARIFICATION, THE FOLLOWING SHALL BE DEEMED "DIRECT DAMAGES" AS BETWEEN CUSTOMER AND SUPERION FOR THE PURPOSES OF THIS AGREEMENT (i) ANY AND ALL DAMAGES, INCLUDING CONSEQUENTIAL AND SIMILAR DAMAGES, AWARDED TO A THIRD PARTY FOR WHICH INDEMNIFICATION IS PROVIDED BY A PARTY UNDER SECTION 4.2; (ii) CUSTOMER'S OUT-OF-POCKET COSTS TO NOTIFY AFFECTED PERSONS AND/OR PAY FOR CREDIT MONITORING SERVICES FOR SUCH PERSONS FOR A ONE-YEAR PERIOD INCURRED AS A RESULT OF SUPERION'S BREACH OF SECTION 5. 4.9 Exceptions. THE LIMITATIONS AND EXCLUSIONS SET FORTH IN SECTIONS 4.7 AND 4.8 SHALL NOT APPLY TO: (a) BREACHES OF THE SCOPE OF USE; (b) FAILURE TO PAY FEES WHEN DUE; (c) DAMAGES CAUSED BY EITHER PARTY'S FRAUD OR WILLFUL MISCONDUCT; (d) A PARTY'S LIABILITY FOR DEATH OR PERSONAL INJURY DUE TO THAT PARTY'S NEGLIGENCE; OR (e) A PARTY'S LIABILITY FOR DAMAGES TO THE EXTENT THAT SUCH LIMITATION OR EXCLUSION IS NOT PERMITTED BY APPLICABLE LAW. THE LIMITATIONS SET FORTH IN SECTION 4.7 DO NOT APPLY TO CLAIMS FOR WHICH INDEMNIFICATION IS PROVIDED BY A PARTY UNDER SECTION 4.2. 4.10 Third -Party Software. To facilitate Customer's access and use of the Third -Party Software, the licensor(s) of Packet Pg. 203 8.1.a such Third -Party Software have agreed to allow Superion to provide the Third -Party Software to Customer subject to the following additional conditions: (i) the Third -Party Software shall be used only in conjunction with any permissible use of the Solution specifically authorized in this Agreement, and (ii) the Third -Party Software shall be used only in accordance with licensor's terms and conditions and documentation for the Third -Party Software which, unless otherwise included in a specific Supplement to the Order, shall be provided to Customer with the receipt of such Third -Party Software. Superion shall use reasonable efforts to provide Customer the benefit of all indemnities and warranties granted to Superion by the licensor(s) of the Third -Party Software, to the extent possible without additional cost to Superion, as and if permitted by Superion's agreement with the licensor of the Third -Party Software, and to the extent such warranties and indemnities pertain to Customer's use of the Third -Party Software hereunder. In the event of any defect in any Third - Party Software (in the form delivered by Superion and when properly used for the purpose and in the manner specifically authorized by this Agreement), Superion will use commercially reasonable efforts to replace or correct the Third -Party Software without charge. If Superion complies with this provision, it shall face no further liability with respect to any defect in any Third -Party Software. Unless as otherwise provided in a specific Supplement to the Order, or as provided in the licensor's terms and conditions, Superion shall provide Level 1 support of the Third -Party Software. For purposes herein, Level 1 Support shall mean: 1) Taking the first support call from Customer and qualifying the call priority, or if an existing case, obtaining case information; 2) Gathering information about the case, defining and describing the problem, and determining if the Third Party Software is the cause of the problem. Analyze problem symptoms, attempt to find root cause if appropriate and document result of such attempts. Determining if the problem is a known Third -Party Software problem by accessing third party online support resources; and 3) If it is determined to be a Third -Party Software problem, contacting the Third -Party Software technical support. For new cases, opening a case and selecting a priority. For existing cases, providing the case number and information gathered to the Third -Party Software support engineer. 4.11 Third -Party Hardware and Third -Party Services. Customer is hereby advised that the third party, and not Superion, assumes all responsibility for and liability in connection with the Third -Party Hardware and Third -Party Services, and is solely responsible for delivering the Third - Party Hardware and Third -Party Services to Customer. Superion is not authorized to make any representations or warranties that are binding upon the third party or to engage in any other acts that are binding upon the third party, excepting specifically that Superion is authorized to represent the fees for the Third -Party Hardware or Third -Party Services as the same is provided for in the Order and to accept payment of such amounts from Customer on behalf of the third party. 4.12 Open Source Software Components. The Solution may be provided with or included Open Source Software, including that Open Source Software identified in the Documentation or on the support services website for the Solution. The Open Source Software is licensed under the terms of the open source license that accompanies or is made available with such Open Source Software, including via a website designated by Superion. Nothing in this Agreement limits Customer's rights under, or grants Customer rights that supersede, the terms and conditions of any applicable license for such Open Source Software. Open Source Software shall not be deemed to be part of the Solution under this Agreement and Superion shall have no liability relating to such Open Source Software; provided, however, that Superion shall be responsible for fixing Errors caused by the Open Source Software to the same extent as Superion's ongoing support obligations as set forth in Section 8.5 and 9.33 of this Agreement. 4.13 Open Negotiation. Customer and Superion have freely and openly negotiated this Agreement, including the pricing, with the knowledge that the liability of the parties is to be limited in accordance with the provisions of this Agreement. 4.14 Title and Risk of Loss. In no event will Superion be deemed to have taken title or any similar right or interest in or of any Third -Party Software or Third -Party Hardware in the chain of distribution to Customer, and title, risk of loss, and/or such similar right or interest in or to the Third -Party Software or Third -Party Hardware will be deemed to vest in Customer either at the point of delivery to carrier for shipment or as otherwise provided for in the licensor's terms and conditions. 4.15 Disclaimer. Except as may be provided in Section 4.10 above, Customer agrees and understands that SUPERION MAKES NO WARRANTIES WHATSOEVER, EXPRESSED OR IMPLIED, WITH REGARD TO THE THIRD -PARTY PRODUCTS. ALL WARRANTIES (IF ANY) ARE PROVIDED TO CUSTOMER BY THE LICENSORS, MANUFACTURERS OR PROVIDERS OF SUCH THIRD - PARTY PRODUCTS. SUPERION EXPLICITLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. EXCEPT FOR ITS OBLIGATION TO REMIT PAYMENT RECEIVED FROM CUSTOMER TO THE THIRD PARTY PURSUANT TO THIS AGREEMENT, SUPERION WILL HAVE NO LIABILITY WHATSOEVER IN CONNECTION WITH THE THIRD -PARTY PRODUCTS. 4.16 Other Limitations. The warranties made by Superion in this Agreement, and the obligations of Superion under this Agreement, run only to Customer and not to its Affiliates, its customers or any other Persons. Under no circumstances shall any Affiliate or customer of Customer or any other Person be considered a third -party beneficiary of this Agreement or otherwise entitled to any rights or remedies under this Agreement (including any right to be consulted in connection with any variation or rescission of the Agreement agreed between Superion and Customer), even if such Affiliates, customers or other Persons are provided access to the Solution or data maintained in the Solution via the Internet or other networked environment. Except to the extent Packet Pg. 204 8.1.a specified in an Order, Superion shall not be deemed Customer's official record keeper for regulatory or other purposes and shall have no obligation to retain any records or data on Customer's behalf after termination or expiration of this Agreement. 5. Confidentiality, Security, Ownership and Use Restrictions. 5.1 Confidentiality. The party receiving Confidential Information ("Receiving Party") of the other ("Disclosing Party") shall not, and shall cause its Authorized Recipients not to, use Confidential Information for any purpose except as necessary to implement, perform or enforce this Agreement. Receiving Party will use the same reasonable efforts to: (a) protect the Confidential Information of Disclosing Party as it uses to protect its own proprietary information and data. Prior to disclosing the Confidential Information to its Authorized Recipients, Receiving Party shall inform them of the confidential nature of the Confidential Information and require them to abide by the terms of this Agreement. Receiving Party will promptly notify Disclosing Party if Receiving Party discovers any improper use or disclosure of Confidential Information and will promptly commence all reasonable efforts to investigate and correct the causes of such improper use or disclosure. If Receiving Party believes the Confidential Information must be disclosed under applicable law, Receiving Party may do so provided that, to the extent permitted by law, the other party is given a reasonable opportunity to contest such disclosure or obtain a protective order. 5.2 Security (a) Superion will implement commercially reasonable administrative, technical and physical safeguards designed to: (i) ensure the security and confidentiality of Customer Data; (ii) protect against any anticipated threats or hazards to the security or integrity of Customer Data; and (iii) protect against unauthorized access to or use of Customer Data. Superion will review and test such safeguards on no less than an annual basis. (b) If Customer makes the Solution or data maintained by the Solution accessible through the Internet or other networked environment, Customer shall be solely responsible for all aspects of Internet use, and shall maintain, in connection with the operation or use of the Solution, adequate technical and procedural access controls and system security requirements and devices, necessary for data privacy, confidentiality, integrity, authorization, authentication and non -repudiation and virus detection and eradication. (c) To the extent that Third -Party Users are permitted to have access to the Solution, Customer shall maintain agreements with such Third Party Users that adequately protect the confidentiality and intellectual property rights of Superion in the Solution and Documentation, and disclaim any liability or responsibility of Superion with respect to such Third Party Users. 5.3 Personal Data. If Superion processes or otherwise has access to any personal data or personal information on Customer's behalf when performing Superion's obligations under this Agreement, then: (i) Customer shall be the data controller (where "data controller" means an entity which alone or jointly with others determines purposes for which and the manner in which any personal data are, or are to be, processed) and Superion shall be a data processor (where "data processor" means an entity which processes the data only on behalf of the data controller and not for any purposes of its own); (ii) Customer shall ensure that it has obtained all necessary consents and it is entitled to transfer the relevant personal data or personal information to Superion so that Superion may lawfully use, process and transfer the personal data and personal information in accordance with this Agreement on Customer's behalf, which may include Superion processing and transferring the relevant personal data or personal information outside the country where Customer and the Authorized Users are located in order for Superion to provide the Solution and perform its other obligations under this Agreement; and (iii) Superion shall process the personal data and personal information only in accordance with any lawful and reasonable instructions given by Customer from time to time as set out in and in accordance with the terms of this Agreement; and (iv) each party shall take appropriate technical and organizational measures against unauthorized or unlawful processing of the personal data and personal information or its accidental loss, destruction or damage so that, having regard to the state of technological development and the cost of implementing any measures, the measures taken ensure a level of security appropriate to the harm that might result from such unauthorized or unlawful processing or accidental loss, destruction or damage in relation to the personal data and personal information and the nature of the personal data and personal information being protected. If necessary, the parties will cooperate to document these measures taken. 5.4 SG Solution Details. The SG Solution Details are trade secrets and proprietary property of Superion or its licensors, having great commercial value to Superion or its licensors. Title to all SG Solution Details and all related intellectual property and other ownership rights shall be and remain exclusively with Superion or its licensors, even with respect to such items that were created by Superion specifically for or on behalf of Customer. Superion and its Affiliates may freely use Feedback without attribution or the need for Superion, its Affiliates or any third party to pay Customer or any third party any royalties or other fees of any kind. This Agreement is not an agreement of sale, and no intellectual property or other ownership rights to any SG Solution Details are transferred to Customer by virtue of this Agreement. All copies of SG Solution Details in Customer's possession shall be deemed to be on loan to Customer during the term of this Agreement. 5.5 Use Restrictions. Except to the extent specifically authorized by this Agreement, Customer shall not, shall not attempt to, and shall not permit any other Person under its reasonable control to: (a) use any SG Solution Detail for any purpose, at any location or in any manner not specifically authorized by this Agreement; (b) make or retain any Copy of any SG Solution Detail; (c) create or recreate the source code for the Solution, or re -engineer, reverse engineer, decompile or disassemble the Solution except to the extent specifically permitted by applicable law; (d) modify, adapt, translate or create derivative works based upon the Solution or Documentation, or combine or merge any part of the Solution or Documentation with or into any other software or documentation except to the extent specifically permitted by applicable law; (e) refer to, disclose or otherwise use any SG Packet Pg. 205 8.1.a Solution Detail as part of any effort either (i) to develop a program having any functional attributes, visual expressions or other features similar to those of the Solution or (ii) to compete with Superion; (f) remove, erase or tamper with any copyright or other proprietary notice printed or stamped on, affixed to, or encoded or recorded in any SG Solution Detail, or fail to preserve all copyright and other proprietary notices in any Copy of any SG Solution Detail made by Customer; (g) sell, market, license, sublicense, distribute or otherwise grant to any Person, including any outsourcer, vendor, sub- contractor, consultant or partner, any right to use any SG Solution Detail or allow such other Person to use or have access to any SG Solution Detail, whether on Customer's behalf or otherwise; or (h) use the Solution to conduct any type of application service provider, service bureau or time- sharing operation or to provide remote processing, network processing, network telecommunications or similar services to any Person, whether on a fee basis or otherwise. 5.6 Notice and Remedy of Breaches. Each party shall promptly give notice to the other of any actual or suspected breach by it of any of the provisions of this Section 5, whether or not intentional, and the breaching party shall, at its expense, take all steps reasonably requested by the other party to prevent or remedy the breach. 5.7 Enforcement. Each party acknowledges that any breach of any of the provisions of this Section 5 may result in irreparable injury to the other for which money damages would not adequately compensate. If there is a breach, then the injured party shall be entitled, in addition to all other rights and remedies which it may have, to have a decree of specific performance or an injunction issued by any competent court, requiring the breach to be cured or enjoining all Persons involved from continuing the breach. Professional Services. 6.1 Professional Services. An Order may identify certain Professional Services. . 6.2 Professional Services Fees. Customer shall pay to Superion the professional services fees stated on the Order. In each case where professional services fees are not specified on the Order, then the fees for such services shall be based upon Superion's then standard professional services fee rates. 6.3 Expense Reimbursements. Customer shall reimburse Superion for reasonable travel, living and other out- of-pocket expenses incurred by Superion personnel in connection with all services, including, but not limited to, Professional Services and maintenance and support rendered by Superion. Reimbursable expenses shall be incurred by Superion personnel in accordance with Superion's then current per diem travel expense guidelines, a copy of which will be included in the Order. Superion shall invoice Customer for reimbursement of these expenses on a monthly basis, as incurred. 6.4 Cooperation and Access to Facilities, Data and Employees. To the extent reasonably necessary for Superion to perform its obligations under this Agreement, Customer shall provide to Superion access to Customer's location site, equipment, data and employees, and shall otherwise cooperate with Superion in its performance hereunder, all as reasonably necessary for Superion to perform its obligations under this Agreement. 6.5 Professional Services Warranty. Superion warrants to Customer that Professional Services will be performed in a good and workmanlike manner by qualified personnel, subject to Section 6.4. Superion shall have no liability under this Section 6.5 unless, within thirty (30) days after the actual date of the particular Professional Services, Superion receives notice from Customer describing the breach of this warranty, together with adequate supporting documentation and data. Upon receipt of any such notice, Superion's only obligation under this Section 6.5 is to remedy the breach and reperform the particular Professional Services affected as soon as reasonably practical at no additional charge. 6.6 Compliance with Customer Policies. While Superion personnel are performing services at Customer's site, Superion will ensure that such personnel comply with Customer's reasonable security procedures and site policies that are generally applicable to Customer's other suppliers providing similar services and that have been provided to Superion in writing and in advance. Customer shall promptly reimburse Superion for any out-of-pocket costs incurred in complying with such procedures and policies. 6.7 Contributed Material. In the process of Superion's performing Professional Services, Customer may, from time to time, provide Superion with designs, plans, or specifications, improvements, works or other material for inclusion in, or making modifications to, the Solution, the Documentation or any other deliverables ("Contributed Material"). Customer grants to Superion a nonexclusive, irrevocable, perpetual, transferable right, without the payment of any royalties or other compensation of any kind and without the right of attribution, for Superion, Superion's Affiliates and Superion's licensees to make, use, sell and create derivative works of the Contributed Material. 7. Term and Termination. 7.1 Order Term. The Order may state an initial term for the use of the Solution ("Initial Term") and may state renewal terms (each a "Renewal Term"). "Order Term" means the Initial Term together with any Renewal Terms. 7.2 Termination. Either party may terminate this Agreement by giving notice of termination to the other party if the other party breaches any of its material obligations (other than Customer's failure to pay Support Fees during a Renewal Support Term) under this Agreement and does not cure the breach within thirty (30) days after receiving notice describing the breach in reasonable detail. 7.3 Effect of Termination. The provisions of Sections 3, 4, 5, 7.3 and 10 shall survive any termination of this Agreement, whether under this Section 7 or otherwise. Customer shall be liable for all payments due to Superion for the period ending on the date of termination. Upon a termination of this Agreement, whether under this Section 7 or otherwise, or upon the expiration or termination of an Order Term, Customer shall: (i) discontinue all use of the affected Solution and Documentation, (ii) promptly return to Superion all copies of the affected Solution and Documentation and any other affected SG Solution Details then in Customer's possession; and (iii) give notice to Superion certifying that all copies of such items have been permanently deleted. 8. Terms Applicable To SaaS, ASP and Hosting. The following provisions in this Section 8 apply solely to Packet Pg. 206 8.1.a Hosting Services and to Orders for and ASP Solution or SaaS Solution. 8.1 Saas, ASP and Hosting. Superion shall provide the Hosting Services and/or access to the ASP Solution or SaaS solution, as described and for the term specified on the Order. 8.2 Passwords and Solution Access. If Superion provides Customer or its Authorized Users with unique access codes to access the Solution (each, a "Password"), Customer shall hold any such Passwords in strict confidence and shall not assign, share, misuse or abuse the Passwords or attempt to render ineffective the password protection of the Solution. If Customer suspects or learns that a Password is being used to gain unauthorized access to the Solution, Customer will immediately notify Superion so that it can change, or assist Customer in changing, the applicable Password. To the extent the Solution is within Superion's network, Superion may suspend access to the Solution without advance notice if Superion reasonably believes the Solution is being used or accessed in an unauthorized, illegal or disruptive manner, provided that Superion will promptly notify Customer of any such event. 8.3 Customer Data. (a) Customer shall supply, or cause to be supplied, all Customer Supplied Data. Customer shall transmit the Customer Supplied Data to Superion by communications link or in another manner described on the Order. As between Superion and Customer, Customer shall be responsible for ensuring that the Customer Supplied Data is Accurate and complete. Customer represents and warrant to Superion that Customer has the full legal right for Customer and Superion, its affiliates and agents to use the Customer Supplied Data for processing hereunder. (b) Within thirty (30) days after termination of Hosting Services or of an Order for an ASP Solution or SaaS Solution, Customer shall give Superion an instruction notice regarding the disposition of any tapes, data, files and other property belonging to Customer and then in Superion's possession. To the extent practicable and at Customer's expense after receipt of such notice, Superion shall use commercially reasonable efforts to comply with the notice, including converting the data on the Solution to machine-readable form. Superion may retain such property until Superion receives all payments due to Superion under that Order. If Customer fails to give that notice within thirty (30) days after such termination, then Superion may dispose of such property in a commercially reasonable manner. (c) In order to improve Superion's product and service offerings for its customers, Superion may maintain a database of information residing on the Solution. Superion and its affiliates may use and distribute such data in an aggregated and de -identified format, including as a part of the development, distribution and licensing of any Superion product or service offering. 8.4 Regulatory Access. To the extent permitted by law, each party will notify the other promptly of any formal request by an authorized governmental agency or regulator to examine Customer Data or other records, if any, regarding Customer that are maintained in Superion facilities under this Agreement. Customer will reimburse Superion for the reasonable out-of-pocket costs Superion incurs, and for time spent, in making such Customer Data or other records, if any, available for examination and audit by the governmental agency or regulatory authority that has jurisdiction over Customer's business. 8.5 Support. Superion shall provide to Customer the ongoing support services as described in the Order. 8.6 Data Backup and Disaster Recovery. If the Solution maintains a database then, unless otherwise stated on the Order: (a) Superion shall provide an electronic backup of the Customer Data accordance with the backup cycle defined in the Order (and if no backup cycle is defined, at reasonable intervals); and (b) Superion shall maintain a disaster recovery plan which includes a procedure for the restoration of Customer's production environment at an alternate facility in the event of a disaster. Superion's disaster recovery plan shall be tested at least once each calendar year. 8.7 Interruption to Solution. From time to time, Superion shall be entitled (at its discretion, without incurring liability for so doing) to interrupt the Solution to: (i) perform repairs and other maintenance and install enhancements on Superion's equipment, software and/or other systems that are required for the provision of the Solution, or (ii) make adjustments to its infrastructure (including, for example, in relation to resources shared by its other customers) and thereby cause a disruption in the provision of the Solution. Except in the case of emergency repairs, maintenance or adjustments, Superion will (a) give Customer reasonable prior notice of the interruption; (b) limit such interruptions to outside of Superion's normal business hours; and (c) use commercially reasonable efforts to minimize the impact of the interruption. 8.8 Harmful Code. Using a recent version of a reputable virus -checking product (to the extent commercially available), Customer will check the Specified Configuration for Harmful Code and ensure no Harmful Code is introduced by its end users or from its systems into any systems used in the Solution and will use commercially reasonable efforts to eliminate any such Harmful Code that either Customer or Superion discovers. 8.9 Volume Increases. Customer shall give notice to Superion whenever Customer intends to materially increase the volume of data to be processed on the Solution. Any such increase that results in an increase beyond the Scope of Use requires an additional executed Order and the payment of additional fees. 9. Terms Applicable to Software Licenses. The following provisions in this Section 9 apply solely to an Order that provides the right for Customer to install the Solution at the facility identified on the Order. 9.1 Grant. Except as otherwise provided in an Order, Superion grants to Customer a non -transferable, non - Packet Pg. 207 8.1.a exclusive, term license to use the Solution in accordance with this Agreement and the Scope of Use. The Solution shall be installed in object code form only at Customer's location(s) listed on the Order ("Designated Location(s)"). Customer may, subject to Section 10.4, use or access the Solution at or from Customer locations worldwide. Customer may change a Designated Location by giving prompt notice thereof to Superion. Customer may copy and use the Solution installed at the Designated Location for inactive back-up and disaster recovery purposes. Customer may copy the Documentation to the extent reasonably necessary for use of the Solution under this Agreement. 9.2 Initial Installation. Superion shall deliver to Customer the initial Copies of the Solution stated on the Order by supplying such initial Copies (a) by physical shipment, such as on a disc or other media, or (b) by electronic delivery, such as by posting it on Superion's network for downloading. Physical shipment is on F.O.B. terms, Superion's shipping point and electronic delivery is deemed effective at the time Superion provides Customer with access to download the Solution. The date of such delivery shall be referred to as the "Delivery Date." 9.3 Support. Beginning on the Order Execution Date and continuing for the duration of the initial support term set forth on the Order ("Initial Support Term"), Superion shall provide the ongoing support services described in that Order; and Customer shall pay to Superion support fees stated on such Order ("Support Fees"). Upon expiration of the Initial Support Term, the ongoing support services shall automatically renew and Customer shall be obligated to pay the Support Fees for additional annual support periods (each a "Renewal Support Term"), until the earlier of: (a) a party giving the other notice of its intent to terminate ongoing support services (in accordance with Section 10.1) at least sixty (60) days before the end of the Initial Support Term or Renewal Support Term, as applicable, provided that Superion shall not provide such notice of support termination if such termination would be effective prior to whichever is the later of (i) the fifth (5th) anniversary of the Order Execution Date; or (ii) the date which falls at the end of the period equal to two (2) times the Initial Support Term; or (b) termination of this Agreement. On an annual basis, Superion may increase the Support Fees payable. 9.4 Support Termination. Upon the effective date of termination of ongoing support services by either party or at any time when Customer has failed to pay Support Fees ("Support Termination Date"): (i) Superion shall discontinue providing all ongoing support services, including Superion's obligations under Section 9.3; (ii) any Superion warranties under this Agreement shall cease to apply for the period after the Support Termination Date; and (iii) Superion shall not be liable for Customer's use of the Solution after the Support Termination Date except for Superion's indemnification obligations for any third -party claims covered by Section 4.2 that arose prior to the Support Termination Date (but only to the extent such claim would not have been remedied by a Release made available by Superion after the Support Termination Date). 9.5 Software Warranty. Superion warrants to Customer that for a period of twelve (12) months from the Delivery Date, the Solution (as delivered to Customer by Superion and when properly used for the purpose and in the manner specifically authorized by this Agreement), will perform as described in the Documentation in all material respects. Superion's sole obligation and liability under this warranty is to comply with the provisions of Section 9.3 of this Agreement. 9.6 Remote Access of Installed Software. Provided that Superion performs such services in accordance with the confidentiality provisions of this Agreement, Customer shall permit Superion, at Superion's option, to remotely access the Solution installed at the Designated Location for the purpose of providing support services to Customer under Section 9.3 and otherwise implementing the purposes of this Agreement. In remotely accessing such Solution, Superion will comply with Customer's reasonable security procedures and company policies that have been provided to Superion in writing. Customer shall promptly reimburse Superion for any out-of-pocket costs incurred in complying with such procedures and policies. 9.7 Backup. Customer acknowledges that it is the best judge of the value and importance of the data held on Customer's systems and that Customer shall be solely responsible for maintaining secure and complete back-up copies of all data that Customer processes using the Solution, which data will be backed -up on not less than a daily basis and which will be readily available on machines controlled by Customer to facilitate the prompt restoration of such data in the event of any loss of or damage to it. Superion shall have no liability for any loss or damage caused by Customer's failure to maintain such backed -up copies. 9.8 Audit. At Superion's expense and upon written request with reasonable notice, Customer will permit Superion, its personnel or its outside auditors to enter the relevant Customer locations during normal business hours and audit the number of copies of the Solution and Documentation in Customer's possession and information pertaining to Customer's compliance with this Agreement. Such audits shall not occur more than once in any twelve (12) month period (unless Superion believes, in good faith, that there has been a breach of this Agreement by Customer) and shall be performed in a manner not to disrupt Customer's business and operations and will respect the confidentiality of Customer, its suppliers and customers. Customer will, in a timely manner, reasonably cooperate with the auditors and provide the auditors all assistance as they may reasonably request in connection with the audit. Customer may require auditors acting on behalf of Superion to execute reasonable confidentiality agreements and comply with Customer's reasonable security requirements, but the requirement will not apply to Superion's internal auditors otherwise bound by the confidentiality conditions of this Agreement. 10. Other Provisions. 10.1 Notices. All notices, consents and other communications under or regarding this Agreement shall be in writing and shall be deemed to have been received on the earlier of: (a) the date of actual receipt; (b) the third business day after being mailed by first class, certified or air mail or (c) the first business day after being sent by a reputable overnight delivery service. Any notice may be given by facsimile, or email if notice by one of the foregoing is provided Packet Pg. 208 8.1.a promptly thereafter. Customer's address for notices is stated on the Order. Superion's address for notices is stated on the Order. In the case of (i) any notice by Customer alleging a breach of this Agreement by Superion or (ii) a termination of this Agreement. Either party may change its address for notices by giving written notice of the new address to the other party. 10.2 Defined Terms. As used in this Agreement, the terms below (and their plural forms) have the following meanings: (a) "affiliate" whether capitalized or not, means, with respect to a specified Person, any Person which directly or indirectly controls, is controlled by, or is under common control with the specified Person as of the date of this Agreement, for as long as such relationship remains in effect. (b) "Authorized Recipient" means: (i) with respect to Customer, Customer, any Authorized User and any employee of a Customer contractor, provided that the contractor is not a competitor of Superion; and (ii) with respect to Superion, Superion, its foreign and domestic Affiliates and their respective contractors. (c) "Authorized User" means a Customer employee. (d) "Confidential Information" means all business or technical information disclosed by Disclosing Party to Receiving Party in connection with this Agreement. Confidential Information includes without limitation: (i) Customer Data and the details of Customer's computer operations; and (ii) the SG Solution Details. Confidential Information does not include information that: (aa) prior to the receipt thereof under this Agreement, had been developed independently by Receiving Party, or was lawfully known to Receiving Party, or had been lawfully received by Receiving Party from other sources, provided such other source did not receive it due to a breach of an agreement with Disclosing Party, and Receiving Party knew of such breach or ought to have reasonably known of such breach; (bb) is publicly known at or after the time either party first learns of such information, or generic information or knowledge which either party would have learned in the course of its work in the trade, business or industry; or (cc) subsequent to the receipt thereof under this Agreement; (1) is published by Disclosing Party or is disclosed generally by Disclosing Party to others without restriction on its use and disclosure; or (2) has been lawfully obtained by Receiving Party from other sources which Receiving Party reasonably believes lawfully came to possess it. (e) "copy" whether capitalized or not, means any paper, disk, tape, film, memory device or other material or object on or in which any words, object code, source code or other symbols are written, recorded or encoded, whether permanent or transitory. (f) "Customer Data" means data stored in, or processed by, the Solution; provided that aggregated data that is not personally identifiable data and not identifiable to Customer shall not be deemed Customer Data nor Customer's Confidential Information. (g) "Customer Supplied Data" means any information or data introduced into the Solution by or on behalf of Customer. (h) "Disputed Amount" means a good faith dispute by Customer of certain amounts invoiced under this Agreement. An amount will only constitute a Disputed Amount if (i) Customer has given notice of the dispute to Superion promptly after receiving the invoice and (ii) the notice explains Customer's position in reasonable detail. A disputed will not exist as to an invoice in its entirety merely because certain amounts on the invoice are Disputed Amounts. (i) Documentation" means the standard user documentation Superion provides for the Solution, as such Documentation may be updated from time to time. (j) "Error" means a failure of a Supported Release to perform in all material respects in accordance with the Documentation. (k) "Export Laws" means any laws, administrative regulations and executive orders of the U.S., the United Kingdom and any other jurisdiction where any SG Solution Details will be located or from where any SG Solution Details will be accessed under this Agreement relating to the control of imports and exports of commodities and technical data, use or remote use of software and related property or services, embargo of goods or services or registration of this Agreement including the Export Administration Regulations of the U.S. Department of Commerce and the regulations and executive orders administered by the Office of Foreign Asset Control of the U.S. Department of the Treasury. (1) "Feedback" means any suggestions or recommendations for improvements or modifications to the Solution made by or on behalf of Customer. (m) "including" whether capitalized or not, means including but not limited to. (n) "Liability Cap" means the greater of Fifty Thousand U.S. Dollars (US$50,000) or the amount identified on the Order as the liability cap, provided however that, if no amount is identified on the Order then the liability cap shall be Fifty Thousand U.S. Dollars (US$50,000). (o) "Open Source Software" means computer software made generally available at no charge by the copyright holder under a license which provides the right to modify and distribute the software to anyone for any purpose at no charge. (p) "person" whether capitalized or not, means any individual, sole proprietorship, joint venture, partnership, corporation, company, firm, bank, association, cooperative, trust, estate, government, governmental agency, regulatory authority or other entity of any nature. (q) "Professional Services" means installation, implementation, training or consulting services including custom modification programming, support services relating to custom modifications, on -site support services, assistance with data transfers, system restarts and reinstallations provided by Superion under this Agreement. (r) "Release" means a modification or update to the Solution, which Superion, in its sole discretion, incorporates into the Solution without requiring its then Packet Pg. 209 8.1.a existing client base to pay a separate fee (other than support fees). (s) "Scope of Use" means the Designated Computer(s), Designated Location(s), License Term, Platform, Business Purpose, Number of Trades, Number of Work Stations, Number of Developers, Number of Users, Volume Limit, Number of Production Databases, Number of Production Servers, and/or other restrictions or parameters as are stated in Section 5.5 or on the Order. Scope of Use shall not include the processing of any Acquired Business. Customer shall use the Solution in production to process Customer's business; provided that all increases in the Scope of Use require the execution of an amendment amending the Scope of Use. (t) "SG Solution Details" means any of the following: the Solution and Documentation, the object code and the source code for the Solution, the visual expressions, screen formats, report formats and other design features of the Solution, all ideas, methods, algorithms, formulae and concepts used in developing and/or incorporated into the Solution or Documentation, all future modifications, updates, Releases, improvements and enhancements of the Solution or Documentation, all derivative works (as such term is used in the U.S. copyright laws) based upon any of the foregoing and all copies of the foregoing. (u) "Supported Release" means, unless otherwise stated in the Order, the latest Release of the Solution that is generally available to Superion's client base. (v) "Third -Party Product" means Third -Party Software, Third Party Hardware, Third -Party Data or Third -Party Services. (w) "Third -Party Hardware" means that hardware specified as third party hardware on the Order. (x) "Third -Party Services" means those services specified as third party services on the Order. (y) "Third -Party Software" means the software specified as third -party software on the Order. (z) "Third -Party User" means any of Customer's customers, or their customers, to the extent such persons are provided access to the Solution or Third - Party Data hereunder. 10.3 Parties in Interest (a) This Agreement shall bind, benefit and be enforceable by and against Superion and Customer and, their respective permitted successors and assigns. (b) Customer shall not assign this Agreement or any of its rights hereunder, nor delegate any of its obligations hereunder, without Superion's prior written consent, except such consent shall not be required in the case of an assignment of this Agreement (but not of any individual rights or obligations hereunder) to (i) a purchaser of or successor to substantially all of Customer's business (unless such purchaser or successor is a software, data processing or computer services vendor that is a competitor of Superion, its parent company or any of its Affiliates) or (ii) an Affiliate of Customer, provided in the case of such an assignment, Customer guarantees the obligations of the assignee and the use of the Solution is not broadened beyond the Scope of Use. Any assignment by Customer in breach of this Section shall be void. Any express assignment of this Agreement, any change in control of Customer (or its Affiliate in the case of an assignment to that Affiliate under this Section 10.3(b) and any assignment by merger or otherwise by operation of law, shall constitute an assignment of this Agreement by Customer for purposes of this Section 0 (`Customer Assignment"). In the event of a Customer Assignment, or any acquisition of additional business by Customer, whether by asset acquisition, merger or otherwise by operation of law (collectively with the Customer Assignment, "Customer Additional Business Acquisition"), Customer shall give notice to Superion notifying Superion if Customer desires to use the Solution to process any additional business related to such Customer Additional Business Acquisition (`Acquired Business"). 10.4 Export Laws. Customer acknowledges that the SG Solution Details and the services provided by Superion hereunder and this Agreement are subject to the Export Laws. Customer shall not violate the Export Laws or otherwise export, re-export or use, directly or indirectly (including via remote access), any part of the Solution, Confidential Information or services in a manner, or to or for any person or entity, for which a license or other authorization is required under the Export Laws without first obtaining such license or authorization. 10.5 Relationship. The relationship between the parties created by this Agreement is that of independent contractors and not partners, joint venturers or agents. 10.6 Entire Understanding. This Agreement, which includes and incorporates the Order, and any other schedules, exhibits and addenda hereto states the entire understanding between the parties with respect to its subject matter, and supersedes all prior proposals, marketing materials, negotiations, representations (whether negligently or innocently made), agreements and other written or oral communications between the parties with respect to the subject matter of this Agreement. In the event of a conflict between the provisions of the SST and an Order incorporating the SST, the terms of such Order shall prevail. Any written, printed or other materials which Superion provides to Customer that are not included in the Documentation are provided on an "as is" basis, without warranty, and solely as an accommodation to Customer. In entering into this Agreement each party acknowledges and agrees that it has not relied on any express or implied representation, warranty, collateral contract or other assurance (whether negligently or innocently made), except those expressly set out in this Agreement. Each party waives all rights and remedies which, but for this Section 10.6, might otherwise be available to it in respect of any such representation (whether negligently or innocently made), warranty, collateral contract or other assurance. Nothing in this Agreement shall limit or exclude any liability for fraud or fraudulent misrepresentation. 10.7 Modification and Waiver. No modification of this Agreement, and no waiver of any breach of this Agreement, shall be effective unless in writing and signed by an Packet Pg. 210 8.1.a authorized representative of the party against whom enforcement is sought. This Agreement may not be modified or amended by electronic means without written agreement of the parties with respect to formats and protocols. No waiver of any breach of this Agreement, and no course of dealing between the parties, shall be construed as a waiver of any subsequent breach of this Agreement. 10.8 Severability, Heading and Counterparts. A determination that any provision of this Agreement is invalid or unenforceable shall not affect the other provisions of this Agreement. Section headings are for convenience of reference only and shall not affect the interpretation of this Agreement. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 10.9 Personnel. Customer acknowledges that: (a) Superion expends substantial time and money, on an ongoing basis, to recruit and train its programmers, trainers, data processing, customer support and professional services team personnel ("Superion Personnel"); (b) Superion's business is highly competitive, is marketed throughout the United States, Europe and in many other locations worldwide, and requires long sales lead times often exceeding one (1) year; and (c) if Customer were to hire Superion Personnel, then Superion may suffer lost sales opportunities and would incur substantial time and money in hiring and training replacement(s) for those Superion Personnel. Accordingly, if Customer, directly or through one or more subsidiaries or other controlled entities, hires any Superion Personnel at any time when such Superion Personnel is employed or engaged by Superion or during the six (6) months after such employment or engagement ends, then Customer shall pay to Superion as liquidated damages (and not a penalty) an amount equal to twelve (12) months of such Superion Personnel's salary and other compensation (including bonus or commission payments) at the time of leaving his/her employment or engagement with Superion. For purposes of this provision, "hire" means to employ as an employee or to engage as an independent contractor, whether on a full-time, part-time or temporary basis. This provision will remain in effect during the term of this Agreement and for a period of one (1) year after expiration or termination of this Agreement. 10.10 Jurisdiction and Governing Law. This Agreement and any dispute or claim arising, directly or indirectly, out of or in connection with it or its subject matter or formation (including non -contractual disputes or claims) is governed by, and shall be construed and enforced in accordance with, the laws of the State of Florida excluding choice of law. Each party irrevocably (i) agrees that a County or Circuit Court in the Eighteenth Judicial Circuit, in and for Seminole County, Florida, or the United States District for the Middle District of Florida, shall have exclusive jurisdiction to settle any dispute, controversy or claim arising, directly or indirectly, out of or in connection with this Agreement, or the breach, termination or validity thereof (including non -contractual disputes or claims) and that such court shall be the proper venue therefor; (ii) waives the right to trial by jury, (iii) consents to service of process by first class certified mail, return receipt requested, postage prepaid, to the address at which the party is to receive notice and (iv) agrees that the prevailing party shall be entitled to recover its reasonable attorney's fees (including, if applicable, charges for in-house counsel), court costs and other legal expenses from the other party Packet Pg. 211 8.1.a SCOPE OF WORK EXHIBIT B Q Packet Pg. 212 Statement of Work TRAKiT Document prepared for: City of Edmonds, WA 10/4/17 SUPERION Y• � •f F":r: .. lJ f77 Ibg I Packet Pg. 213 r,- �l- SUPERION 1. EXECUTIVE SUMMARY............................................................................................................................................4 1.1 INTRODUCTION............................................................................................................................................................. 4 2. PROJECT OVERVIEW................................................................................................................................................ 4 2.1 DELIVERY OVERVIEW.................................................................................................................................................. 4 2.2 DUTIES & RESPONSIBILITIES OF CUSTOMER..................................................................................................................... 4 3. SCOPE OVERVIEW................................................................................................................................................... 5 3.1 ORGANIZATIONAL SCOPE................................................................................................ ERROR! BOOKMARK NOT DEFINED. 3.2 TRAKIT SOFTWARE SCOPE.......................................................................................................................................... 6 3.3 DATA CONVERSION SCOPE........................................................................................................................................... 7 3.4 INTEGRATION SCOPE................................................................................................................................................... 8 3.5 MODIFICATION/ENHANCEMENTSCOPE..........................................................................................................................9 3.6 FORMS AND REPORTING SCOPE.................................................................................................................................. 10 3.7 INSTALLATION SERVICES SCOPE................................................................................................................................... 10 3.8 TRAINING, CONFIGURATION, AND TESTING SCOPE.......................................................................................................... 11 3.9 USER CATEGORY DEFINITIONS.............................................................................................................................. 13 4. STAGES AND MILESTONES..................................................................................................................................... 13 4.1 KICKOFF/REVIEW .................................................................................................................................................... 13 4.2 CONFIGURE............................................................................................................................................................. 14 4.3 TEST/INITIAL TRAINING............................................................................................................................................ 14 4.4 FINAL TRAINING/GO LIVE.........................................................................................................................................15 5. IMPLEMENTATION APPROACH............................................................................................................................. 17 5.1 DATA CONVERSION APPROACH................................................................................................................................... 17 5.2 INTERFACE APPROACH............................................................................................................................................... 18 5.3 REPORTS APPROACH................................................................................................................................................. 19 5.4 FORMS CREATION APPROACH..................................................................................................................................... 20 5.5 CONSULTING, CONFIGURATION, AND TESTING APPROACH................................................................................................ 21 5.6 TRAINING APPROACH AND KNOWLEDGE TRANSFER......................................................................................................... 21 6. PROJECT GOVERNANCE......................................................................................................................................... 23 PROJECTSTAFFING............................................................................................................................................................ 23 6.1 CUSTOMER OF CITY/COUNTY NAME STAFFING.............................................................................................................. 23 6.2 SUPERION STAFFING................................................................................................................................................. 24 7. PROJECT MANAGEMENT....................................................................................................................................... 25 7.1 PROJECT SCHEDULE.................................................................................................................................................. 25 7.2 AGENDAS............................................................................................................................................................... 25 7.3 STATUS MEETINGS................................................................................................................................................... 25 7.4 STATUS REPORTS..................................................................................................................................................... 26 7.5 ISSUES LOG............................................................................................................................................................. 26 7.6 DELIVERABLE AND MILESTONE APPROVAL.....................................................................................................................26 8. CHANGE REQUESTS AND CHANGES TO THIS SCOPE OF WORK.............................................................................. 28 9. IMPLEMENTATION SCHEDULE, TIMELINE, SCOPE CLARIFICATION & MISCELLANEOUS ITEMS ............................... 29 Statement of Work -City of Edmonds, WA 2 Confidential Packet Pg. 214 r,- �1-SUPERION 9.1 IMPLEMENTATION SCHEDULE...................................................................................................................................... 29 9.2 FACILITY REQUIREMENTS........................................................................................................................................... 29 9.3 DISPUTE RESOLUTION PROCEDURES............................................................................................................................. 29 10. APPENDIX 1: PROJECT TIMELINE........................................................................................................................... 31 Statement of Work —City of Edmonds, WA Confidential Packet Pg. 215 �A --SUPERION 1. Executive Summary 1.1 Introduction This document is the Statement of Work (SOW) for the implementation of Community Development software and related services only with respect to the Solution software expressly identified in the Order (the "Agreement") for City of Edmonds, WA (The "Customer"). Superion ("Superion") will provide implementation services identified in the Agreement as further described in this SOW to assist the Customer in implementing the TRAKiT Software Solution. The SOW is an attachment incorporated as part of the Agreement signed by Superion and the Customer, and all actions directed herein shall be performed in accordance with the aforementioned Agreement. The SOW is intended to be a planning and control document, not the detailed requirements or design of the solution. 2. Project Overview The project will go through the stages of Kick Off > Review > Configure > Test > Train > Go -Live and will have its own milestones as identified in Appendix 1. Throughout all stages, the Customer's main point of contact at Superion will be its Project Manager. Should the assigned project manager be unavailable, Superion will provide an experienced Project Manager in place. The Superion Project Manager will be responsible for the overall success on the Superion side, and will coordinate Superion resource tasks and schedule. As the Customer's primary contact, the Superion Project Manager will be present for all regularly scheduled status calls. He/she will defer to other Power User/ SME for data conversion, training, etc. Any issues will be escalated to the Superion Project Manager in the event that the Customer's needs are not being met. 2.1 Delivery Overview Data conversion from single land management database Create & Track Permits/Projects/Code Enforcement Cases/Citizen Incidents Automated and manual workflow Mobile inspection (iTRAKiT) Reports & letters Online web portal for permit visibility & inspection scheduling, including permit application or payment acceptance (eTRAKiT) - Integration with financial application 2.2 Duties & Responsibilities of Customer Customer will provide all information necessary for Superion to establish the software's configuration, including but not limited to: (1) Current valuation and fee structures; (2) Current Permit, Project, and Case type designations and categories; (3) Examples of all current reports used by the Customer relating to business process management; (4) Any exceptions to the typical business processes, or any special lifecycle requirements. Statement of Work —City of Edmonds, WA 4 Confidential Packet Pg. 216 ��--SUPERION �l The Customer will provide Superion with access to Customer workstations, servers, and disk space for the purpose of Superion deploying the acquired Software. Customer workstations and servers must be compatible with software configurations requested by Superion. Superion may, at its discretion, provide a workstation to be deployed on the Customer's network for the purpose of demonstrating the configuration of the acquired Software. The Customer will ensure and provide staff who will be trained in use of Superion software will have sufficient basic knowledge of existing business processes and MS -Windows functions. Customer understands that timely completion of the Project is dependent in significant part upon the timely cooperation of Customer in providing information to Superion necessary to complete the project, including, but not limited to: (a) Data obtained from Customer's present system to be incorporated into the new Superion software; and (b) information relative to desired letters/reports to be incorporated into the Superion software. Should substantial changes occur that affects the negotiated project timeline, Superion will provide the Client with a Change Order for additional services to extend the project timeline. 3. Scope Overview The purpose of this project is to replace the Customer's current Community Development applications with a new completely integrated solution and to improve the Customer's existing administrative processes to take advantage of industry best practices that best leverage the TRAKiT application. The project scope is comprised of the Software and Services identified in the Agreement as further described throughout this SOW. Statement of Work —City of Edmonds, WA 5 Confidential Packet Pg. 217 �A --SUPERION 3.1 TRAKiT Software Scope Superion will deliver computer software (TRAKiT) and database structures for SQL/Server database Provide TRAKiT modules for Community Development to enhance local government operations through flexibility in automating permitting, managing inspections, regulating land use, and tracking projects Deliverable: TRAKiT software modules to include: 1) GeoTRAK 2) AEC TRAK 3) PermitTRAK 4) ProjectTRAK 5) CodeTRAK 6) CRMTRAK Provide eTRAKiT modules for web -based Citizen/Contractor permit processing. Deliverable: Requires a separate web server hosting the ASP.NET pages to provide the following functions: 1) Includes one (1) standard Permit Form for online customers. Changes to permit form will incur an additional cost. 2) Request inspections as a Contractor or Citizen. 3) Review inspection, review, condition, fee statuses and updates. 4) Submit complaints. 5) Create user logins for citizens and/or contractor login. 6) Inspector login to change/input results. 7) Reviewer login to update review notes and status results. Provide iTRAKiT Inspect and iTRAKiT Code, and for field -ready iPad interface. Deliverable iTRAKiT module for iPad to provide the following functions: 1) Login as TRAKiT Inspector. 2) Complete and result scheduled PermitTRAK inspections from the field. 3) Utilize in off-line mode without internet connection (GIS will not update). 4) Provide access to Google Maps. 5) Calculate efficient route. 6) Upload photos from iPad, and view associated attachments (requires connection). Statement of Work —City of Edmonds, WA 6 Confidential Packet Pg. 218 �A --SUPERION 3.2 Data Conversion Scope The following data from the Customer's legacy system has been identified as data needing to be converted to TRAKiT and is included in the services identified in the Agreement. During the project, further discussion and discovery will take place and the Customer may request that modifications to the data conversion services scope be performed by Superion. If the data conversion scope is requested to be modified by Customer, it will become the subject of a separately executed Change Order, which will describe changes in scope of work and payment of fees due for such modified hours/pricing. Superion has included conversion services and pricing in the Agreement for the conversion services outlined below. Deliverable: Electronic transfer (via FTP or email) of converted database; services to develop conversion software for translation; services to perform data conversion; services to install converted data; services to investigate and correct any errors uncovered during conversion balancing and/or system testing. Superion does not guarantee the quality of the source data received, but makes reasonable effort to convert all data in the original source that it is provided. Applies to: Land data from a single source, historical data in Superion Legacy Systems. o Assessor / GIS Connect o Permit Trax from Bitco includes Contacts, Permits, Project records Requirements and Notes: Customer will: (1) For GeoData/GIS Conversions: a. Client understands that TRAKiT integration relies on the agency's source data format remaining constant once conversion instructions are provided by the client. Any change to the TRAKiT GIS/GeoTRAK integration that is due to data format changes will be subject to a Change Order. (2) Customer to provide Superion all tables and files that are necessary for historical data conversion. (3) Customer to provide all necessary files and data to Superion within thirty (30) days of project commencement date. (4) Customer to sign off on Data Conversion Data Mapping Specification provided by Superion. a. While minor changes to this Specification are allowed through the testing period at no additional cost, Customer acknowledges that they will thoroughly review the specification document, and that the conversion mapping and methodology is correct to the best of Customer's knowledge. Minor changes include: i. Modifying translation logic for data sources that are included in this document; ii. Converting tables/fields that were previously thought to be unnecessary for conversion, provided those data sources are included in the Specification. b. Major changes will incur an additional cost. Major changes include: i. Requirements to convert additional data sources; ii. Modifications to structure of data sources, including field names or data types; Statement of Work —City of Edmonds, WA 7 Confidential Packet Pg. 219 r,- �1-SUPERION iii. Changes requested after the deadline for issue submission; iv. Fundamental changes to conversion methodology as determined by Superion. (5) Customer will thoroughly test data converted by Superion after each delivery and report issues within the timeframes agreed in the Project Schedule. In the event that unplanned data conversion activities are required, then Superion and Customer will mutually agree on an appropriate change in project cost. 3.3 Integration Scope The Integrations with TRAKiT identified in the Agreement are as further described below. During the project, further discussion and discovery will take place and the Customer may request that Superion perform modifications to the integration services scope. If the integration scope is requested to be modified by Customer, it will become the subject of a separately executed Change Order, which will describe changes in scope of work and payment of fees due for such modified hours/pricing. Applies to: Deliver integration to Tyler Eden system. Deliverable Create a stored procedure/batch script routine to export financial details nightly from the TRAKiT system into the Tyler Eden financial system. A sample export routine with instructions must be provided to Superion within 30 days of contract execution. Applies to: Deliver integration to Laserfiche Document Management System. Deliverable: Real-time exchange of attachments moved from TRAKiT into Laserfiche's storage. Superion standard Laserfiche integration. Customer will ensure that the product/license is up to date to take advantage of Superion's integration. Applies to: Deliver integration to Washington State Licensing Board for Contractor Licensing Verification Deliverable: Superion has included 40 hours of Washington State Licensing Board Interface for Contractor Licensing Verification provided that the Washington State Licensing Board provides web services that may be utilized to access data from TRAKiT in real time. Superion has similar integration to the California State Licensing Board. Assuming this integration is similar in requirements (i.e. when and what data is pulled) Superion will use this integration as a starting point. This is a high level estimate. If additional information is identified during detailed scoping, additional cost may apply. Superion cannot guarantee the availability of the Washington State Licensing Board web services. Applies to: Provide eTRAKiT Credit Card API Deliverable: Superion will install/configure the eTRAKiT payment plugin interface to process online credit card payments (for Mastercard, VISA, and Discover) through one of the following payment vendors. AMEX may occur additional fees paid by the agency outside of this integration cost. This capability will be added to the agency's eTRAKiT website in a redirect mode only. The payment plugin supports the processing of transactions through one Merchant Account with one Service Code and one Merchant ID. • Authorize.NET Statement of Work —City of Edmonds, WA 8 Confidential Packet Pg. 220 r,TSUPER ION • USA ePay • Virtual Merchant • PayFlowPro (PayPal) • CSI (Jetpay) • MSB All sensitive credit card data is collected, processed, and stored outside of eTRAKiT. Interface will be available to the eTRAKiT customer when checking out to pay fees. Agency responsibilities: 1. Two Merchant Accounts (one for test purposes, one for production purposes) will be obtained by the agency and provided to Superion within 10 business days of request. 2. The agency will provide all convenience fee requirements within 10 business days of request. 3. As necessary, and to facilitate Superion's ability to deliver the solution, the agency will facilitate contract with the selected vendor within 3 days of request. 4. Prior to scheduling this integration, the agency will need to provide credentials from the vendor of choice: o Merchant ID o PIN o Username o Password Options available at additional cost: • Does not include integration with online eCheck payment systems. This is available for additional fee. Requirements and Notes: • Superion is not responsible for the applicable third party software, third party hardware, third party system software or third party services costs which may be required for the configuration of the interfaces described or any additional costs that the third party might require for the integration to be successful. • The Customer is responsible for any necessary communications with third party vendors, if necessary, to accomplish the Interface scope in this SOW. This includes notifying third party vendors of their intent to interface products and the projected timelines for implementation. Superion is not responsible for delays caused by third party readiness. 3.4 Modification/Enhancement Scope The Customer does not have any Solution Software modifications or system customizations in scope for this project. If Solution Software modifications or customization needs are identified during the project, the Statement of Work —City of Edmonds, WA 9 Confidential Packet Pg. 221 ,qkA " S U P E R I ON .A Customer and Superion will follow the scope change process identified in this SOW which will describe additional scope of work and payment of fees due for such additional hours/pricing. 3.5 Forms and Reporting Scope The following forms, reports, and routines have been identified and included in the agreement as further described below. Deliverable Superion will provide services as outlined in the agreement for custom report modifications. Deliverable: Provide one hundred (100) standard reports from TRAKiT's library, along with the following standard libraries: o Permit Library includes a standard Permit Form, Certificate of Occupancy, Receipt, Invoice, and Inspection Results Letter. o Enforcement Library includes two (2) standard Violation Letters. o Plan Corrections Library includes a standard Plan Correction Notice and a standard Planning Commission Staff Report. Deliverable: Superion will provide services as outlined in the agreement for custom form modifications. Requirements and Notes: (1) Custom forms/reports specifications must be identified and signed off no later than the initiation of the Testing Phase of project, or as defined by the agreed Project Plan. (2) Customer to provide information regarding fee formulas, usage, permit and project forms. (3) Sign off on forms/reports specification provided by Superion: a. While minor changes to specifications are allowed through the testing period at no additional cost, Customer acknowledges that they will thoroughly review the specification document, and that the format and content is correct to the best of Customer's knowledge. Minor changes include: i. Modifying form/report logic for data sources that are included in the specification; b. Major changes may incur an additional cost as defined by Superion. Major changes include but are not limited to: i. Requirements to reformat the report after it has already been delivered; ii. Modifications to the structure of content being displayed; iii. Changes requested after the deadline for issue submission; iv. Fundamental changes report format/content as determined by Superion. 3.6 Installation Services Scope The SOW describes below the installation services identified in the Agreement. These services include the following: • Installation of two (2) instances of TRAKiT to be completed. Statement of Work —City of Edmonds, WA 10 Confidential Packet Pg. 222 ��--SUPERION • There will be one (1) initial installation and a copy will be taken to create the second instance (TEST account) prior to the client's go -live event. • Superion will complete all installation remotely. Requirements and Notes: (1) Superion and the Customer will mutually agree on the dates and schedule for the installation and other services in this area. (2) Superion does not configure or install any hardware, or provide IT support for other software (e.g. SQL server, SSRS, etc.) that exists in the client's environment. 3.7 Training, Configuration, and Testing Scope Superion includes training, Configuration, and Testing as outlined in the Agreement and further described below. Discovery Phase Deliverable: Provide web conferencing training, Onsite Meetings, and Remote Reviews as outlined in the agreement. Deliverable Customer to complete configuration workbooks provided by Superion. The workbooks are designed to assist Superion is capturing the Customer's business processes and requirements. Superion will use a combination of the workbooks and information gathered during meetings to set up and configure the software. Configuration Phase Deliverable: Provide remote configuration of TRAKiT software as outlined in the agreement and as specified by the client workbooks. Testing Phase Deliverable: Provide Onsite training, Onsite Meetings, and Remote Configuration as outlined in the agreement. Deliverable: Provide on -site, hands on System Administrator and Report Writing training at Customer office as outlined in the agreement. Superion provides training guides and user manuals as part of training. Class size is limited to eight (8) students. Education Phase Deliverable: Conduct on -site, hands-on End User training at Customer office as outlined in the agreement. Class size is limited to eight (8) students per day. Launch Phase Deliverable: Provide onsite go live assistance at Customer's office as outlined in the agreement. Statement of Work —City of Edmonds, WA 11 Confidential Packet Pg. 223 �A --SUPERION Requirements and Notes: 1. Onsite means at Customer's facilities 2. Remote means from Superion facilities 3. Completed workbook must be received by Superion prior to the start of the configuration phase Statement of Work —City of Edmonds, WA 12 Confidential Packet Pg. 224 r,j-SUPERION 4. User Category Definitions Power User/ SME Includes those individuals providing business process overview used to make TRAKiT configuration decisions during the Discovery phase, and providing testing feedback during the Testing phase of the project. These individuals comprise the Power User/ SME of decision makers for the other groups. For instance, if there is 5 building inspectors, we recommend selecting a single inspector to represent the entire team. End Users All users that will need to be trained on the use of TRAKiT for conducting daily operations. Customer Steering Committee Those individuals usually comprised of department division managers/directors, making executive level decisions. Responsible for signing official documents related to the TRAKiT implementation and providing guidance on management needs. Sometimes comprised of Power User/ SME. S. Stages and Milestones 5.1 Kickoff / Review Begins: Contract Execution Ends: Workbook completion and 3rd party integrations sign -off by Customer and Superion and all data/documentation provided by Customer Description This stage of the project involves discussing and documenting how the business processes and systems will function. It will include meetings, both in person and remote, between the Superion PM and Customer team. The Customer will fill out workbooks based on discussions and guidance from Superion. The Superion PM will be the Customer's main point of contact, and is responsible for the overall design of the system. Superion's data conversion team will work with Customer staff to map and document data to be migrated into TRAKiT. During this stage of the project, Superion will create a project plan. This project plan will outline tasks, Superion resource roles, Customer resource roles, duration, dependencies and start/end dates throughout the project. It will be used to help the Customer plan its own internal task scheduling as well as provide shared visibility into timelines as the project progresses. Superion will be responsible for updating the project plan each week following a status update call with the Customer. Primary Responsibilities for Customer: Communicate project goals, value, schedule internally Assist in developing project schedule / milestone dates Purchase/install system infrastructure and provide appropriate access (VPN, etc.) Ensure that all appropriate Power User/ SME participate in all relevant discussions Provide process flows, source data, and documentation in a timely manner Make informed business decisions in a timely manner Statement of Work —City of Edmonds, WA 13 Confidential Packet Pg. 225 ,qkA "S U P E R I ON .k Complete workbooks with assistance from Superion Provide contact information for any relevant 3rd parties Primary Responsibilities for Superion_ Conduct kick-off meeting with Customer. Install base software with demonstration data Creation and maintenance of shared project plan Organize and lead design sessions with Customer. As permitting consultant and expert on TRAKiT software, provide guidance on best practices, changes to increase efficiency, and challenge Customer's current processes and way of thinking. Document TRAKiT configuration requirements, functionality and workflow Document interface requirements/mappings - Services to be provided do not include hardware 5.2 Configure Begins: Workbook completion and 3rd party integrations sign -off by Customer and Superion and all data/documentation provided by Customer. Ends: Customer acknowledgement on Testing Begins letter. Description: Superion will be responsible for configuring TRAKiT, while the Customer will be responsible for coordinating any 3rd party vendors and developing any documentation required for system testing. All communication between the Customer and Superion in this stage is anticipated to be done remotely. The Superion PM will be the Customer's primary contact with other Superion resources utilized as -needed. Primary Responsibilities of Customer: - Coordinate configuration / development of any 3rd party vendors - Develop standard operating procedure (SOP) documentation - Develop testing and training plan - Participate in weekly status calls Primary Responsibilities of Superion: - Perform agreed -upon configuration / data conversion - Coordinate additional information from Customer as needed - Lead weekly status calls with Customer - Maintain shared project plan 5.3 Test / Initial Training Begins: Customer acknowledgement on receipt of Testing Begins letter. Statement of Work —City of Edmonds, WA 14 Confidential Packet Pg. 226 ,qk Aj-SUPERION .� Ends: Customer acknowledgement on Testing Ends Letter. Description: This stage of the project will begin with a Superion training expert coming onsite to perform Power User/ SME training with Customer staff. The Customer will then begin its testing process, notifying Superion as issues / questions arise. There will be remote communication between the Customer and Superion PM regarding issues and their resolution, with a shared portal so that all team members have visibility to the complete list. Superion will provide revised delivery(s) for configuration and data integration as needed. During this stage, the Customer will also be testing integration with other 3rd party systems. The Customer will be responsible for communicating issues / resolution with all relevant vendors. The Superion PM will remain the Customer's main point of contact, but this stage will likely see increased involvement from other Superion team members for testing support. Primary Responsibilities of Customer: - Provide key staff availability and appropriate facilities for training and testing - Execute all phases of testing plan, including 3rd party integration - Provide constructive, detailed feedback to Superion based on testing results - Coordinate issues / resolution to 3rd party vendors - Amend training plan / SOPs as needed - Participate in weekly status calls - Participate in system administration and report writing training - Power Users attend and participate in end -user training sessions Primary Responsibilities of Superion: - User training for Power User/ SME Testing - Assist Customer with questions / issues on as -needed basis - Provide issue tracking portal for team member visibility to issues/status/resolution - Provide iterative configuration / data conversion deliveries based on testing feedback - Lead weekly status calls with Customer - Maintain shared project plan 5.4 Final Training / Go Live Begins: Customer acknowledgement on completed Testing Ends letter. Ends: Customer sign -off of completed post go -live follow-up visit from Superion and any outstanding systems issues clearly identified. Description: This stage of the project involves using the system in production. The Customer and Superion will agree upon a go -live week during which the Customer will cease use of the legacy system and will begin using TRAKiT for production use. Immediately prior to go -live, Superion and the Customer will perform data conversion from legacy system(s) into TRAKiT. During data Statement of Work —City of Edmonds, WA 15 Confidential Packet Pg. 227 r,TSUPER ION conversion, the Customer understands that services on legacy software may need to be suspended or operations be continued in an alternative manner. The Customer will begin production use of TRAKiT with the Superion PM onsite for support. Although other Superion team members will likely be involved with support tasks and the resolution of issues, the Superion PM will continue to be the Customer's main point of contact throughout Go -Live until the system stabilizes and all issues are resolved. A follow-up visit is performed by the Superion PM roughly 45 days after go -live. The purpose of this visit is to analyze system performance and usage by Customer staff, and to provide any suggestions or facilitate configuration changes that would improve attainment of the Customer's goals. Primary Responsibilities of Customer: - Coordinate historical data conversion with Superion - Coordinate internal and external communication of Go -Live plan and potential business impacts - Provide staff availability for end -user training - Follow standard operating procedures - Provide staff availability for rapid issue response - Work collaboratively with Superion team to rapidly solve any production issues as they occur Primary Responsibilities of Superion: - Convert historical data prior to go live - Provide onsite go -live support - Work collaboratively with Customer team to rapidly solve any production issues as they occur - Provide issue tracking portal for team member visibility to issues/status/resolution - Lead weekly status calls with Customer - Maintain shared project plan - Perform follow-up visit Provide system administration training at Superion facilities. Statement of Work —City of Edmonds, WA 16 Confidential Packet Pg. 228 �A --SUPERION 6. Implementation Approach 6.1 Data Conversion Approach Data conversion development is the joint responsibility of the Customer and Superion. Customer will be responsible for extracting data from the legacy system. Superion will be responsible for importing the data conversion files received from the Customer into TRAKiT using standard imports (where available) or conversion programs. When Superion is engaged to write a data conversion via a conversion program, the process flows as outlined: Role Customer Role. Validate conversion scope Provide input on scope Customer to provide input and advise Customer and requirements for data on best practices conversion related to converting data Discovery call between the Customer and the Data Conversion Lead Task Participate in discovery Specialist assigned to write the data conversion program. and make decisions During call, specifics of the task are discussed so that both parties have a full understanding. Provide to Superion all tables and files that are necessary for Provide FTP or other Provide data historical data conversion. agreed upon secure method for transfer of data Specifications are created by the Data Conversion Specialist and Develop Specifications Provide input and answer sent to the Customer questions if necessary Customer reviews and signs specifications Revised specifications Review Specifications and as necessary provide feedback Complete data conversion checklists. Client and Superion will Complete data Provide data from Legacy compile separate checklists that will be compared at data conversion checklists system in Superion delivery and compare to client required formats, and checklist complete data conversion checklist Deliver data and data conversion checklists for testing. Walk Deliver data and None the customer staff through testing data conversion completed data conversion checklist Tests results and reports any discrepancies Supports the Customer Test and validate data Testing converted data Superion Data Conversion Specialist adjusts conversion program Adjust Conversion None and delivers data Program Steps 8 and 9 are repeated until sign off in step 11. Customer signs off on completion None Sign Off Requirements and Notes 1) The Customer is responsible for validating all data once it is converted into TRAKiT 2) Customer will provide Power User/ SME that are familiar with existing data structures in the legacy system to assist with the conversion process, clean all data, and extract data from legacy to comply with Superion file layouts. 3) The Customer resources will provide the resources to assist with legacy data, data mapping and data validation. Statement of Work —City of Edmonds, WA 17 Confidential Packet Pg. 229 ,qkA " S U P E R I ON .A 4) The Customer will be responsible to get the legacy data "conversion ready", meaning it is clean (duplicates, typos, missing information, etc. have been corrected) and in a format that Superion can read for import purposes (Excel spreadsheet, for example). 6.2 Interface Approach Interface development is the joint responsibility of the Customer and Superion. Customer will be responsible for interface development work to/from existing legacy systems. Superion will be responsible for interface development work to/from the TRAKiT system. When Superion is engaged to create an interface program for following process will be followed: SuperionRole Ir Customer Role Validate Interface Scope Provide input on Provide input scope and advise Customer on best practices related to interfaces Discovery between The Customer and the Developer assigned to write Lead Task Participate in the interface. Specifics of the interface are detailed so that both parties discovery and make have a full understanding. decisions Specifications are created by the Interface Developer and sent to the Create Provide input and Customer specifications answer questions if necessary Customer reviews and signs specifications Revise Review Specifications Specifications as necessary Developer creates interface and delivers to the Customer along with Create interface Provide SME to documentation of interface. and deliver to the answer questions if Customer necessary Customer Staff tests results and reports any discrepancies Answer any Review interface, test questions from results and provide Customer as feedback to Superion testing is executed Developer adjusts interface based on the Customer feedback and re- Revise interfaced None delivers along with updated interface documentation. report as necessary Steps 6 and 7 are repeated until sign off in step 9. Customer signs off on completion None Provide Sign Off Requirements and Notes 1) The Customer is responsible for validating all data transferred into TRAKiT and data transferred from TRAKiT to another application 2) Customer will provide Power User/ SME that are familiar with existing data structures in the legacy system to assist with the interface process. 3) The Customer resources will provide the expertise in 3rd party data, data mapping and data validation. Statement of Work —City of Edmonds, WA 18 Confidential Packet Pg. 230 �A --SUPERION 6.3 Reports Approach When Superion is engaged to write reports Superion and the Customer will use the following approach. . •. •. Create Scoping Document Provide input on Define initial report scope and advise and requirements Customer on best practices related to reports Discovery between The Customer and the Project Manager. Specifics Participate in Document of the report are detailed so that both parties have a full discovery and make specifications understanding. decisions Specifications or current report samples are created by the Customer Develop specifications Provide input and and sent to Superion and send to Customer answer questions if for review necessary Superion and Customer reviews and signs specifications Review specifications Revise Specifications and provide feedback as necessary Report Writer creates report and delivers to the Customer Create report Provide SME to answer questions if necessary Customer Staff tests results and reports any discrepancies Answer any questions Review and test from Customer as report. Provide testing is executed feedback to Superion Superion Report Writer adjusts report based on the Customer Revise Report (if None feedback and re -delivers. necessary) Steps 6 and 7 are repeated until sign off in step 9. Customer signs off on completion Superion Role Provide Sign Off Requirements and Notes: Customer will provide written specifications and or current samples for all reports Superion has agreed to develop. Statement of Work —City of Edmonds, WA 19 Confidential Packet Pg. 231 �A --SUPERION 6.4 Forms Creation Approach When Superion is engaged to develop custom Forms, Superion and the Customer will use the following approach. •. Validate Forms Scope Provide input on scope Define initial Forms and advise Customer on and requirements best practices related to Forms Discovery between the Customer and the Project Manager. Specifics Document forms Participate in of the Workflow are detailed so that both parties have a full specifications meetings and make understanding. decisions Specifications are created by the Project Manager and sent to Develop specifications Provide input and Customer and delivery to answer questions if Customer necessary The Customer reviews and signs specifications Revise Specifications as Review and provide necessary feedback on specifications Superion Form Developer creates Forms and delivers to the Create forms Provide SME to Customer answer questions if necessary Customer staff tests results and reports any discrepancies Answer any questions Test forms from Customer as testing is executed Superion Form Developer adjusts Forms based on Customer feedback Adjust forms based on None and re -delivers. Customer feedback Steps 6 and 7 are repeated until sign off in step 9. Customer signs off on completion Superion Role Provide Sign Off Requirements and Notes: Customer will use one of Superion's standard formats. If Superion standard format does not meet requirements, the Customer can have a custom formed created at additional expense. Statement of Work —City of Edmonds, WA 20 Confidential Packet Pg. 232 ",j-SUPERION 6.5 Consulting, Configuration, and Testing Approach Superion Training, Consulting, and Configuration are broadly defined by the below approach. Ems ... •. •. Customer will complete configuration Workbooks supplied by Provide Workbook Complete Superion. The Workbooks are designed to provide Superion staff and support the Workbooks with the Customer business requirements to assist with set up Customer as they and configuration. complete Superion staff will lead and participate in all phases of the project Lead and Participate in the to make sure the Customer can effectively use TRAKiT participate in all project phases of the project Superion will assess via Business Process Review the Customer's Provide thorough Provide business business practices and make recommendations in the best business process requirements and practice use of TRAKiT. These recommendations will be used to review and make describe current guide the use and configuration and use of TRAKiT recommendations business processes and practices Superion will train End Users on all aspects of TRAKiT so they Train End Users on Participate in all have adequate knowledge to support and use the software all aspects of training effectively TRAKiT Superion will supply configuration options (as necessary) based Supply Make configuration on the Customer's business practices configuration decisions options Superion will work with and train the Customer on the set up and Train Customer on Participate in all configuration of TRAKiT set up and necessary set up configuration and configuration Customer will actively test all configured components of TRAKiT Support Customer Test and report all after system is set up and configured by Superion during testing discrepancies to phase Superion Requirements and Notes: 1) Prior to the Business Process Review the Customer is to provide business process workflow and corresponding reports/forms used in daily activities. Sessions are divided among various Departments implementing TRAKiT. 2) Customer will create and document a testing plan prior to the beginning of testing. 3) Staff with the appropriate skills and experience will be furnished by Superion for each Consulting Session or other review activities, whether onsite or conducted remotely. 4) Customer will actively participate in all training, consulting, and configuration of TRAKiT 5) The Customer will supply SME's in all areas of the software and will provide information to Superion consultants on business processes, policy, and information in order to set up and configure all areas of TRAKiT. 6.6 Training Approach and Knowledge Transfer Superion will train both the Customer Power User/ SMEs and End Users as part of this project. Statement of Work —City of Edmonds, WA 21 Confidential Packet Pg. 233 ,qkA " S U P E R I ON .A Power User/ SME Training: Superion will conduct training for the Power User/ SME. The following areas are the types of training Superion will conduct with the Customer's Power User/ SME. Module overviews Superion staff gives the Customer an overview and understanding of all the modules in TRAKiT which are part of this SOW. TRAKiT Navigation Training Basic navigation on the user interface in TRAKiT Security Training Superion will train the Customer on all aspects of how to set up and use the Security components in TRAKiT. Customer is responsible for overall Security set up and configuration after training. TRAKiT Module Configuration and Unit Superion completed the set-up of TRAKiT and does initial testing. Testing Process Training Once TRAKiT is set up, data is converted, and the Customer Power User/ SME has been trained the Customer will fully test. Superion will train the Power User/ SME on how to create and process records using the TRAKiT software. This will prepare the team to conduct testing and to start getting prepared for end user training. End -User Training Superion will train end -users assigned by the Customer. Training will be in a classroom environment and will be formally completed after testing is completed and before go live. Statement of Work —City of Edmonds, WA 22 Confidential Packet Pg. 234 �A --SUPERION 7. Project Governance Project Staffing The following list provides an overview of committees and positions for Superion and the Customer. Final responsibilities and team members are identified during the implementation -planning phase of the implementation. 7.1 Customer of City of Edmonds, WA Staffing Project Sponsor The Customer's project sponsor provides support to the project by allocating resources, providing strategic direction, communicating key issues about the project and the project's overall importance to the organization. The project sponsor will be involved in the project as needed to provide necessary support, oversight, and guidance, but will not participate in day-to-day activities. The project sponsor will empower the steering committee to make critical business decisions for the Customer. Executive Steering Committee The Customer's Steering Committee will understand and support the cultural change necessary for the project and foster throughout the organization an appreciation of the value of an integrated ERP system. The Steering Committee oversees the project team and the project as a whole. Through participation in regular meetings the Steering Committee will remain updated on all project progress, project decisions, and achievement of project milestones. The Steering Committee will also provide support to the project team by communicating the importance of the project to each member's department along with other department directors in the Customer. The Steering Committee is responsible for ensuring that the project has appropriate resources, providing strategic direction to the project team, and is responsible for making timely decisions on critical project or policy issues. The Steering Committee also serves as primary level of issue resolution for the project. Project Manager The Customer's project manager will coordinate project team members, Power User/ SME, and the overall implementation schedule. The Project Managers will be responsible for reporting to the Steering Committee and providing the majority of the Customer's change management communications and coaching. The project manager will also be the primary point of contact for the project and will coordinate all Superion activities with the Superion project manager. Project Core Functional Team Leads Project team members will be the core functional leads for each area in the system. The project team members have detailed subject matter expertise and are empowered to make appropriate business process and configuration decisions in their respective areas. The Project Team is tasked with carrying out all project tasks described in the Statement of Work including planning, business process analysis, configuration, documentation, testing, training, and all other required Customer tasks. The Project Team will be responsible for and empowered to implement the new system in the best interests of the Customer consistent with the project goals, project vision, and direction from the Project Manager and Steering Committee. Statement of Work —City of Edmonds, WA 23 Confidential Packet Pg. 235 r,TSUPER ION Requirements and Notes: 1) The Customer may have multiple staff providing the roles outlined above 2) Skill type is for example purposes only and does not reflect the actual positions at the Customer. 7.2 Superion Staffing Project Management Organization (PMO) • Provide support to Project Managers in reporting project progress to Steering Committee as necessary • Approve and sign off on any material changes to project scope or staffing changes. Project Manager • Fulfill Go Live dates • Support the Customer Project Manager in monitoring and reporting overall implementation progress (duties of both the Customer and Superion) • Monitor and report progress on Superion's responsibilities • Immediately notify the Customer Project Manager and Project Sponsor/Steering Committee of any issue that could delay the project • Fulfill all Superion project deliverables outlined in the SOW. • Provide Superion Staff according to the project plan • Facilitate coordination between all Superion departments • Monitor the schedule and make course corrections as necessary. • Serve as the point person for all project issues. (First escalation point) • Prepare weekly status along with weekly project call or meeting • Provide issue resolution status, tracking, and procedures Functional Leads and Trainer (Project Manager, Consultants, Developers, and Technical resources) • Work with the Customer SMEs to design and configure the functional components of the TRAKiT system for optimal long-term use. • Lead the TRAKiT software configuration with assistance from the Customer's Functional Leads. • Assist with the resolution of issues • Trains the Customer core group during the configuration of software • Create and deliver data conversion programs according to Customer specification and this Statement of Work • Create and deliver interface programs according to Customer specification and this Statement of Work • Create and deliver Reports according to this Statement of Work Statement of Work —City of Edmonds, WA 24 Confidential Packet Pg. 236 �A --SUPERION 8. Project Managemeni Superion's Project Work Plan will consist of the following tools and will be maintained throughout the project. 8.1 Project Schedule Superion will create a detailed project schedule encompassing the full scope (all phases, including third party activities) of the project within 60 days after contract signing. The Customer's project manager will provide feedback on the project schedule. The Project Plan will contain: • All project's activities and tasks • Dates of project activities and tasks • Specific resources assigned to project tasks • All Milestones and Deliverables • Task dependencies (if applicable) 8.2 Agendas Superion's project manager will provide a project schedule as part of the work plan. The schedule will outline the planned Superion onsite visits for Superion staff. Agendas for all work sessions will be provided by the Superion Project Manager at least 1 week prior to any on -site meeting. Agendas will include: • Meeting objective • Detailed tasks to be performed • Recommended participants • Detailed schedule breakdown of meeting topics • Resources required for each meeting. 8.3 Status Meetings Superion and the Customer will hold at minimum a bi-weekly meeting on a schedule to be determined. A regular status meeting with the Power User/ SME members including the Superion and Customer Project Managers. Topics to include. • Project plan • Discuss current activities • Action items from the last meeting • Project Issues and Risk log • Milestone or Deliverable The Customer Project Manager and Steering Committee should participate in status meetings on a bi-weekly basis. Topics to include. • Project Overview and Status • Critical issues impacting the project • Decisions needing steering committee assistance Statement of Work —City of Edmonds, WA 25 Confidential Packet Pg. 237 �A --SUPERION • Milestone or Deliverable approval 8.4 Status Reports Superion's project manager will prepare status reports on a weekly basis for the duration of the project. Status reports will be used to communicate key project information to the Customer's Project Manager and Steering Committee. Reports are to include: • Project Status • Summary of accomplishments • Late Overdue items • Status of key milestones deliverables • Project timeline • Issues/Risks • Project Budget 8.5 Issues Log Superion and Customer will maintain a list of issues (both open and closed) that have been identified for the project. Any project risks, key decisions, issues, disputes, or late tasks shall be identified on the Issues Log. Both Customer and Superion project managers and project team members are responsible for adding items to the issues log. For each identified issue, the following information will be captured: • Issue Number • Reported by/date • Status (i.e. new, open, closed, pending) • Component unit/Business Process • Priority • Issue • Comments • Findings • Recommendations • Resolution Assignment • Date Tested (if applicable) • Date Closed (if applicable) The Customer and Superion project managers will review the Issues Log as part of regularly scheduled project management meetings or more frequently as required. Once the issue has been assigned, the appropriate project team member(s) are responsible for completing the assigned follow-up tasks and resolving the issue by the assigned due date. The Customer Project Manager or the Superion project manager may choose to escalate and issue following the issue resolution process defined in this SOW. Items directly related to TRAKiT will be logged with Superion's Helpdesk, and tracked in the case system. 8.6 Deliverable and Milestone Approval Statement of Work —City of Edmonds, WA 26 Confidential Packet Pg. 238 r,- �l- SUPERION The Customer will review, approve and provide written sign -off for all Deliverables and Milestones identified in Appendix 1 of the SOW by following the below process: 1. Superion will submit in writing to the Customer a Deliverable or Milestone completion form for each completed Deliverable or milestone. 2. The Customer will identify in writing any required changes, deficiencies, and/or additions necessary, within five (5) business days of receipt of the form for each completed Deliverable or Milestone. If Superion does not receive a signed completion form within five (5) business days and the Customer has not requested additional review time, the Deliverable or Milestone will be deemed accepted. 3. Superion and the Customer will work together to review Deliverable and Milestones which are not approved and create a plan to address. When the Deliverable has been updated or the Milestone achieved a revised form will be submitted. The Customer will then review the Deliverable or Milestone and provide any additional comments on any required changes, deficiencies, and/or additions necessary within five (5) business days of receipt of the updated completion form. This process will be repeated until the Customer grants approval and signoff on the Deliverable or Milestone. 4. In all instances, the terms of section 2.2 will apply in that should substantial changes occur that affects the negotiated project timeline, Superion may provide the Client with a Change Order for additional services to extend the project timeline. Upon approval of the Deliverable or Milestone, the Customer Project Manager will sign the completion form and shall return it to Superion's Project Manager. Statement of Work —City of Edmonds, WA 27 Confidential Packet Pg. 239 �A --SUPERION 9. Change Requests and Changes to this Scope of Work The Customer and Superion may request a change to this scope of work by following the process outlined in this section. Either party may request changes in scope. Such a request is honored by the parties only if it becomes a formal Change Order. The change order will provide sufficient detail including the following. • Detailed description of resources (both Customer and Superion) required to perform the change • Specifications if applicable • Implementation Plans • Schedule for completion • Verification and Approval criteria • Impact on current milestones and payment schedule • Additional milestones (if applicable) • Impact on project goals and objectives • Price Either Superion or Customer management may propose a change by submittal of a Change Request to the other party. The other party has five (5) business days (or as mutually agreed upon) to determine whether it agrees to the Change Request. If both parties agree to the Change Request, the change will become a Change Order documented and signed by both parties. If agreement to pursue a Change Order does not occur in five (5) business days of the initiation of the Change Request (or as mutually agreed upon), it is assumed that the Change Request has been rejected and any remaining issues will be identified on the Issues Log and/or follow the Dispute Resolution process identified in Section 9.3. Statement of Work —City of Edmonds, WA 28 Confidential Packet Pg. 240 �A --SUPERION 10. Implementation Schedule, Timeline, Scope Clarification & Miscellaneous Items 10.1 Implementation Schedule Specific project dates will be mutually determined upon execution of the contract and will be maintained in the Project Plan. 10.2 Facility Requirements Superion recommends the following facilities be available for the entire life cycle of the project. 1. The Customer will provide an adequate workspace for each onsite Superion consultant, with access to a desktop workstation, network, and close proximity to the Customer Project Team. Adequate breakout and conference space will also be provided. 2. When Superion is onsite, the Customer Project Team should ideally be located near the Superion project members to facilitate good communication and coordination amongst the team members. 3. Customer to provide classroom space, workstations, and networked access to the server for all on -site classes at Customer facilities. If Customer does not have hardware for conducting training, then Superion can provide onsite laptop labs for an additional cost. 10.3 Dispute Resolution Procedures The Customer and Superion should anticipate challenging issues to arise throughout the implementation process due to the complex magnitude of this project. In order for challenging issues to be remedied in a timely fashion, the Customer and Superion will utilize the following Dispute Resolution Procedure: All communication regarding the project should be directed to Superion and Customer's Project Manager in order to maintain consistent communication between the parties. Scheduled weekly calls/meetings will be maintained between the Superion Project Manager and the Customer's Project Team (including the Customer's Project Manager). All issues or concerns will be discussed actively and openly between Superion's Project Manager and the Customer's Project Manager. If issues begin to interfere with the progression of the implementation project, the Customer and/or Superion should escalate challenges to Superion management in the sequence below, as needed: Timothy Pease — Mgr., Professional Services 407-304-3938 timothy.pease@Superion.com PaulTovey — Sr. Dir., Professional Services 530-879-5139 Paul.Tovey@Superion.com Todd Schulte — COO Todd.schulteg Superion.com Tom Amburgey— GM, Public Admin 407.304.3022 tom.amburgey@ Superion.com Kevin Lafeber—President and CCO 407.304.3102 kevin.lafeber@ Superion.com Statement of Work —City of Edmonds, WA 29 Confidential Packet Pg. 241 r,- �l- SUPERION 1400000977&\-\ ,Escalation to Customer Management Team should be as follows:) Statement of Work —City of Edmonds, WA 30 Confidential Comment [TH(1]: er to complete E� Packet Pg. 242 ,T SUPERION nk 1 11. ADaendix 1: Project Timeline Target dates for the tasks and milestones will be established during the planning/kick off phase of the project. 1. Contract Execution Client signs contract. Superion signs final contract. 2. Delivery of TRAKiT software and Superion provides FTP access to facilitate License Key data exchanges with Client. Superion delivers Client software and license key via the FTP site. 3. Project Hand -Off Call Client reviews and sets initial Project Timeline Superion & Client review Project dates with Superion. Timeline; Superion delivers electronic copies of Configuration Guide. 4. Confirm Hardware & Required Client provides confirmation that all required Superion reviews hardware Systems hardware, servers, database systems, and specifications with Client; Superion related components are ready. confirms remote access. S. Initial Data Extract Client uploads all legacy databases quoted in Superion reviews initial data upload. the contract to Superion's FTP site. 6. Project Timeline Sign -Off Client signs -off on remaining project Superion provides Client with timeline SIGN OFF milestone dates. dates. 7. Software Installation Client provides remote access to servers. Superion installs all TRAKiT software on Client servers. One workstation will also be tested. S. Database Consultation Client conducts meeting with Superion to Superion provides suggestions to ensure SIGN OFF discuss the data conversion process and a brief expectations are reviewed. review of the data structure. Client signs -off on Data Source Document. 9. GIS Consultation Client conducts meeting with Superion to Superion offers suggestions to ensure SIGN OFF discuss the delivery expectations for GIS data. expected delivery is achieved. Superion provides a sample 'Map Template'to be used within TRAKiT GIS. 10. Map Template Delivered The sample map template is also delivered to the client. 11. Delivery of Geodatabase Client uploads geodatabase onto Superion's Superion begins mapping the source FTP site for data mapping. tables to the TRAKiT structure. 12. Screenshots of Existing Software Client provides screenshots of existing Superion reviews screenshots and begins software that relate to the data conversion mapping of data; Superion prepares data process. mapping document to submit to Client. 13. Demo Existing Legacy Systems Client conducts an overview of their existing Superion reviews current legacy systems Statement of Work —City of Edmonds, WA 31 Confidential Packet Pg. 243 SUPERION Client Responsibilities Superion Responsibilities system for Superion. with Client. 14. Remote Webinar Training Series Client attends and participates in remote 2- Superion conducts webinar training hour webinar training sessions for each Power sessions prior to onsite meeting. User/ SME. 15. Kick -Off Meeting Client attends and participates in Kick -Off Superion conducts Kick -Off meeting ONSITE Meeting, which includes a review of the onsite. Reviews Configuration Guide Configuration Guide and Workbook. with all Departments, and assists in completing GeoTRAK data fields. Superion provides workflow samples for future discussions. 16. 1" Workbook Review Remote Client Departments attend review meetings Superion conducts a review of business Discussion with Superion. processes with each Department. Superion ensures that the Configuration Workbook is being updated. 17. 1" GeoTRAK Workbook Review Client reviews land data mapping details and Superion reviews configuration configuration information with Superion. workbook and provides feedback as applicable. 18. Initial Workflows Client provides initial workflows from various Superion reviews initial workflows Departments for review. submitted for Business Process Meeting. 19. Business Process Review Meeting Client provides business process workflow and Superion assists the Client with ONSITE corresponding reports/forms used in daily Workbooks, identifies process activities. Sessions are divided among various adaptations, and reviews specifications Departments implementing TRAKiT. for reporting requirements. 20. 1s` Conversion Review Client attends 1'` review call with Superion's Superion to provide list of data data conversion specialist. conversion questions. 21. 2nd GeoTRAK Workbook Review Client reviews the finalized GeoTRAK Superion reviews workbook and provides workbook. additional feedback as applicable. 22. eTRAKiT Credit Card Gateway Client provides Superion with eTRAKiT credit Superion reviews credit card portal and card gateway information for integration. prepares a scope for expectations. 23. 2nd Workbook & Workflow Review Client Departments attend review meetings Superion conducts a review of business Remote Discussion with Superion. processes with each Department. Superion ensures that the Configuration Workbook & Workflows are being updated. 24 2"d Conversion Review Client attends I" review call with Superion's Superion to provide list of data data conversion specialist. conversion questions. 25. Final GeoTRAK Workbook Review Client submits and reviews the finalized Superion reviews workbook and provides GeoTRAK workbook. additional feedback as applicable. Statement of Work -City of Edmonds, WA 32 Confidential Packet Pg. 244 SUPERION dF 26. Final List of Forms/Reports Due Client Responsibilities Client delivers final list of forms and reports Superion Responsibi and defines custom scripts for additional requirements to Superion to design. 27. GeoTRAK Workbook Final Client provides final version of GeoTRAK Superion collects GeoTRAK workbook, Collection workbook, including all mapping, custom completes those spatial joins being screen, and spatial join requirements. handled by Superion, ensures that mapping is consistent with discussed process. 28. 3rd Workbook & Workflow Review Client Departments attend review meetings Superion conducts a review of business Remote Discussion with Superion. processes with each Department. Superion ensures that the Configuration Workbook & Workflows are being updated. 29. Workbook Review Meeting Client provides Workbooks and copies of Superion collects Client responses to ONSITE needed forms/reports; Client attends Workbooks; Superion conducts department meetings to offer insight into Department meetings to ensure workflow; Client provides complete set of understanding of responses and discuss source data for conversion. procedural needs; Superion reviews data to convert with Client. 30. Customer Survey Client provides feedback on the Superion Superion conducts a review of the efforts to date. project to date. 31. GeoTRAK Pre -Conversion Review Client participates in the pre -conversion GIS Specialist and Data Conversion review. Specialist review GeoTRAK workbook to clarify mapping and conversion details. 32. Project Workbook Draft Client provides their completed Project Superion reviews the submitted Workbook. workbook. 33. GeoTRAK Workbook Client signs -off on GeoTRAK workbook. Superion provides finalized GeoTRAK SIGN OFt workbook for Client sign -off. 34. Initial Forms/Reports Scope Client participate in a review of the SIGN OFF Forms/Reports requirements and signs -off on the initial Forms/Reports Scope. 35. Project Workbook Client signs -off on final version of the Superion will utilize the Workbook in SIGN OFF Workbook. configuration of the system. 36. Final Conversion Review Client attends final review call with Superion's Superion to provide final list of data data conversion specialist. conversion question and any type of mapping requirements 37. Map Services Delivered Client delivers Map services to Superion prior Superion configures Map services with to Initial Delivery. Map services may include: data. Statement of Work -City of Edmonds, WA 33 Confidential Packet Pg. 245 SUPERION 38. System Configuration 39. Power User/ SME Training Planning 40. Initial Delivery ONSITE 41. Workflow Processes Delivered 42. Power User/ SMEs Trained ONSITE 43. Testing Begins SIGN OFF 44. 1't Testing Review 45. 1" Review of Forms/Reports 46. Initial Delivery Revisions 47. External Interface Review Client Responsibilities eTRAKiT map service TRAKiT data map service TRAKiT visual map service Client participates and provides additional information as needed by Superion. Client is introduced to Superion Trainer and develops plan for User Training Client will attend the demonstration of the delivery. Client receives written workflow processes from Superion. Client will provide meeting space and training computers for up to eight (8) staff. Client Power User/ SMEs verify accuracy and placement of converted data, forms & reports; Client tests software configuration; Client tests program interfaces; Client tests software customizations; Client notifies Superion of desired changes. Client acknowledges the start of the test process. Client reviews data & configuration with project manager via remote sessions. Client reviews Forms/Reports provided at Initial Delivery and provides comments or sign - off. Client delivers revision list to Superion. Client tests any external data interfaces provided by Superion; includes land update routine, accounting interface, and other data import routines. Superion Responsibilities I Superion configures system according to Workbook responses and meeting discussions; Superion converts historical data; Superion creates/customizes reports and/or forms (e.g. Permit Form). Superion PM & Trainer meet with client to discuss User Training. Superion installs and demonstrates configured system with various Departments. eTRAKiT validation/preferences are reviewed with Client. Superion delivers a sample set of workflow processes to Client for review and use during Training. Superion provides training materials for initial system configuration. Superion receives change requests from Client and makes necessary revisions. Superion schedules remote meetings with each Department to review system configuration and Checklists. Superion receives comments or sign -off from Client and makes adjustments as necessary. Superion receives review comments from Client and begins adjusting configured system. Superion reviews any external data import/export routines prepared for Client. Statement of Work -City of Edmonds, WA 34 Confidential Packet Pg. 246 SUPERION 48. 2°d Testing Review Client Responsibilities Client reviews data & configuration with Superion Responsibilities Superion schedules remote meetings project manager via remote sessions. with each Department to review system configuration and Checklists. 49. 2"d Delivery Client continues review of system. Superion delivers revisions to Client. ONSITE 50. GeoTRAK Update Routine Client to review and sign -off on GeoTRAK Superion provide the GeoTRAK Update SinN nrr Update Routine document. Routine document. 51. Customer Survey Client provides feedback on the Superion Superion conducts a review of the efforts since the Workbook Review. project since the Workbook review. 52. 3rd Testing Review Client reviews data & configuration with Superion schedules remote meetings project manager via remote sessions. with each Department to review system configuration and Checklists. 53. 2"d Review of Forms/Reports Client reviews Forms/Reports provided at 2°d Superion receives comments or sign -off Delivery and provides comments or sign -off. from Client and makes adjustments as necessary. 54. 2"d Delivery Revisions Client delivers revision list to Superion. 55. 4th Testing Review Client reviews data & configuration with Superion schedules remote meetings project manager via remote sessions. with each Department to review system configuration and Checklists. 56. 3'd Delivery Client continues review of system. 57. GeoTRAK Update Routine Delivery Client provides Superion with Superion initializes the GeoTRAK Update credentials/access to configure the GeoTRAK Routine and Python scripts (in GIS if Update Routine. necessary). 58. GIS Final Review Client tests map services and updates with Superion finalizes GIS configuration for Superion. Go Live. 59. Final Review of Forms/Reports Client reviews Forms/Reports provided at 3rd Superion receives comments or sign -off Delivery and provides comments or sign -off. from Client and makes adjustments as necessary. 60. Final Revisions List Client delivers final revision list to Superion. Superion receives review comments ONSITE from Client and makes final adjustments. 61. eTRAKIT Final Connection Validated Client validates the configuration settings for Superion provides remote assistance for eTRAKIT portal. eTRAKIT payment portal. 62. 5th Testing Review Client reviews data & configuration with Superion schedules remote meetings project manager via remote sessions. with each Department to review system Statement of Work -City of Edmonds, WA 35 Confidential Packet Pg. 247 SUPERION 63. Final Delivery 64. Go Live Dry Run 65. Testing Ends SIGN OFF Client Responsibilities Superion Responsibilities configuration and Checklists. Client reviews final items submitted. Superion installs modified system. Client delivers data in preparation for Go Live. Superion develops a Go Live schedule for rehearsal with Client prior to actual Go Live. Client acknowledges the end of the test process and approves findings before User Training commences. 66. End User Training Planning Client develops plan for End User Training. Superion PM & Trainer meet with client to discuss Training. 67. Client Support Transition Superion PM assembles materials Preparation necessary to transition the knowledge of the implementation to the Superion Client Support team 68. Client Support Transition Call Client attends remote discussion with Superion introduces Client Support team Superion Client Support team. along with expectations for using technical assistance after Go Live. 69. Transition to Live Client provides final extract of historical data Superion converts data and loads onto to Superion. Client's server. 70. End User Training Client provides meeting space and training Superion provides training materials for ONSITE computers for up to eight (8) staff. onsite training. 71. General System Administration Client End Users attend a mini System Superion conducts an accelerated Training Administrator training session prior to Go Live. System Admin session with End Users for ONSITE user privilege and general configuration management. 72. Go Live Client Goes Live with TRAMT, iTRAKiT, and Superion provides Go Live support ONSITE eTRAKiT. onsite. 73. Follow-up Visit Client assembles various Departments for Superion conducts an onsite follow-up ONSITE review with Superion. visit 45 days after Go Live. 74. Customer Survey Client provides feedback on the overall Superion conducts a final review of the project. project implementation. 75. Go -Live System Review Client reviews that Superion has provided and Superion provides a letter detailing all REVIEW committed to all project deliverables. project commitments. Statement of Work -City of Edmonds, WA 36 Confidential Packet Pg. 248 r,- �l- SUPERION System Administrator / Report Writing Client provides meeting space and training Superion provides training materials for Training computers for up to eight (8) staff. onsite training. Statement of Work —City of Edmonds, WA 37 Confidential Packet Pg. 249 8.2 City Council Agenda Item Meeting Date: 10/10/2017 Public Facilities District (PFD) Bond Refinancing (25 min.) Staff Lead: Scott James Department: Administrative Services Preparer: Scott James Background/History In 2008, Edmonds Public Facilities District (PFD) issued Sales Tax Obligation and Refunding Bonds in the amount of $4,000,000. The proceeds were primarily used to refund the District's outstanding balance on its 2005 General and Revenue Obligation Line of Credit. The 2008 Bonds are callable any time after June 1, 2018, and the PFD has the ability to refinance these bonds, saving the PFD approximately $160,000 to $215,000. The callable par amount of the 2008 Bonds that can be refunded totals $2,655,000. During the September 26, 2017 Finance Committee, Council Finance Committee Chair, Diane Buckshnis, added the discussion of the PFD Bond Refinancing to the Committee agenda. During the course of the discussion, the following questions were raised with responses in red italics: 1) If the City were to issue the refinanced bonds in the City's name, the refinancing arrangement will have to include/show that the PFD will be responsible for the bond payments. a. The language that was used in the 2002 issue, and the subsequent 2012 re funding, regarding the responsibility of the PFD to meet the obligation could/should be incorporated into any new issue that the City does on behalf of the District. The guarantee, of course, will be the District's direct sales tax rebate and the funds received from the Snohomish County PFD, just as in the previous bond issue. If the City were to move forward and refinance the PFD bonds in the City's name, staff recommends that bond counsel be requested to incorporate the necessary clause(s) into the new bond documents. 2) What will the PFD's balance sheet look like before and after the bonds are refinanced, if the bonds are refinanced in the City's name? a. The PFD carries the liability for the 200212012 bond issue on its balance sheet as "Contractual Obligation to the City of Edmonds"; in the exact amount owed in principal and interest as the City states on its own annual financial statements. Any new bonds issued in the name of the City on behalf of the District would be accounted for in exactly the some way. The District's Statement of Net Position, therefore, would add the new principal and interest amount for the new bond issue to that line item. The amount would decrease, of course, presuming there would be interest savings. 3) Bring all the PFD's debt schedules, including the Contingent Loan, to the October 10th meeting. Packet Pg. 250 8.2 a. Schedules are attached and are summarized in the attached Summary of the District's Total Debt Outstanding schedule. 4) Bring the PFD's financial statements for the past two to three years. a. Audited financial statements for 2014 and 2015 are attached. Financial Statements for FY2016 is also attached, but contrary to its title it is not in final form. The audit is nearly complete - exit conference is currently scheduled for October 12, immediately following the PFD Board Meeting. 5) One of the criteria the City may require, should the City issue the refinanced bonds in the City's name is: A first right of refusal for the PFD to issue any new debt before the refinanced bonds and contingent loan are paid off. a. The District Board will need to consider this point at its upcoming special meeting on 10/12. 6) Bring the Contingent Loan details; i.e., amount of each new loan granted to the PFD and repayments made to date. a. The Contingent Loan Schedule is attached. 7) Bring a comparison of interest costs, City issued vs. PFD issued. What are advantages and cost savings between the two options? a. Scott Bauer from Northwest Municipal Advisors will present and discuss the attached City of Edmonds / Edmonds PFD Refinancing Options report during the Committee meeting. 8) Do we extend the refinanced bonds to say 2030 or keep the current term of 12/2025? a. There are advantages to either of these options, which staff and Mr. Bauer will review with the committee. There are also some additional options, which will be presented and discussed, that may be of mutual interest to the City of Edmonds and to the PFD Board as they may offer even greater savings and/or advantages. Staff Recommendation Narrative Attachments: PFD Capital Debt Overview - 2017 PFD Payment Schedule - 2008 Bonds PFD Payment Schedule - 2012 Bonds PFD ECA Contingent Loan Schedule EPFD Financial Report 2014 EPFD Financial Report 2015 EPDF 2016 Annual Report - FINAL Edmonds PFD Options - October 10 2017 Packet Pg. 251 8.2.a Edmonds Public Facilities District Capital Debt Overview As of September, 2017 2002/2012 Bond Issue Issued by the City of Edmonds, 11/19/2002 Re -Funded by the City of Edmonds, 10/18/12 Guaranteed by Projected PFD Sales Tax Revenue Amount of Original Bond Issue Interest Rates Amount Refunded in 2012 Interest Rates Final Payment Due $ 7,015,000 $ 1,015,000 Paid by City of Edmonds 3% - 4.9% $ 6,000,000 Paid by Edmonds PFD $ 4,965,000 $ 4,965,000 Paid by Edmonds PFD 1.69% 12/1/2026 2008 Bond Issue Issued by Edmonds Public Facilities District Backed by City of Edmonds via Contingent Loan Agreement Guaranteed by Projected PFD Sales Tax Revenue Amount of Bond Issue Interest Rates 4.25%-4.5% Final Payment Due 12/1/2025 Total Capital Debt Outstanding 2012 Refunded Bonds 2008 Bonds Total Bond Debt Outstanding Due to City of Edmonds (Loan) $ 4,000,000 $ 4,000,000 paid by Edmonds PFD Remaining Remaining Remaining Principal Interest Total $ 3,945,000 $ 455,968 $ 4,400,968 $ 2,880,000 $ 689,640 $ 3,569,640 $ 6,825,000 $ 1,145,608 $ 7,970,608 variable* variable* $ 1,173,381 TOTAL OUTSTANDING CAPITAL DEBT 1 $ 9,143,989 *Interest on City Loan = LGIP Interest Rate. Current 30-day yield for LGIP on September 21, 2017 = 1.12% Q Packet Pg. 252 8.2.b 2008 LTGO Bond Payment Schedule Year Ending December 31 Principal + Interest = Total (1/2 interest) 2008 $ - $ 65,658 $ 65,658 2009 40,000 172,533 212,533 2010 105,000 170,833 275,833 2011 120,000 166,370 286,370 2012 135,000 161,270 296,270 $80,635.00 2013 155,000 155,533 310,533 $77,766.50 2014 170,000 148,945 318,945 $74,472.50 2015 185,000 141,295 326,295 $70,647.50 2016 210,000 132,970 342,970 $66,485.00 2017 225,000 123,520 348,520 $61,760.00 2018 250,000 114,295 364,295 $57,147.50 2019 265,000 104,045 369,045 $52,022.50 2020 295,000 92,915 387,915 $46,457.50 2021 315,000 80,525 395,525 $40,262.50 2022 340,000 66,980 406,980 $33,490.00 2023 365,000 52,360 417,360 $26,180.00 2024 400,000 36,300 436,300 $18,150.00 2025 425,000 18,700 443,700 $9,350.00 Total $4,000,000 $2,005,046 $6,005,046 Payments due June 1 and December 1 June 1 payments ='/z of annual interest due (e.g.: in 2011, June payment = $83,185) December 1 payments = full annual principal amount plus remaining interest due (e.g.: in 2011, December pymt = $120,000 + $83,185 for a total payment of $203,185) Packet Pg. 253 8.2.c Bond Debt Service City of Edmonds, Washington Refund 2002 LTGO (PFD Portion) Final Numbers (UBS Financial Services Inc.) Dated Date 10/30/2012 Delivery Date 10/30/2012 Period Annual Debt Ending Principal Interest Debt Service Service 12/1/2012 8,670.74 8,670.74 8,670.74 6/1/2013 50,346.25 50,346.25 12/1/2013 225,000 50,346.25 275,346.25 325,692.50 6/1/2014 48,096.25 48,096.25 12/1/2014 245,000 48,096.25 293,096.25 341,192.50 6/1/2015 45,646.25 45,646.25 12/1/2015 265,000 45,646.25 310,646.25 356,292.50 6/1/2016 42,996.25 42,996.25 12/1/2016 285,000 42,996.25 327,996.25 370,992.50 6/1/2017 40,146.25 40,146.25 12/1/2017 305,000 40,146.25 345,146.25 385,292.50 6/1/2018 37,096.25 37,096.25 12/1/2018 330,000 37,096.25 367,096.25 404,192.50 6/1/2019 33,796.25 33,796.25 12/1/2019 350,000 33,796.25 383,796.25 417,592.50 6/1/2020 30,296.25 30,296.25 12/1/2020 375,000 30,296.25 405,296.25 435,592.50 6/1/2021 26,546.25 26,546.25 12/1/2021 400,000 26,546.25 426,546.25 453,092.50 6/1/2022 20,546.25 20,546.25 12/1/2022 430,000 20,546.25 450,546.25 471,092.50 6/1/2023 16,246.25 16,246.25 12/1/2023 455,000 16,246.25 471,246.25 487,492.50 6/1/2024 12,265.00 12,265.00 12/1/2024 480,000 12,265.00 492,265.00 504,530.00 6/1/2025 7,945.00 7,945.00 12/1/2025 510,000 7,945.00 517,945.00 525,890.00 6/1/2026 3,100.00 3,100.00 12/1/2026 310,000 3,100.00 313,100.00 316,200.00 4,965,000 838,808.24 5,803,808.24 5,803,808.24 Nov 2, 2012 11:24 am Prepared by A. Dashen & Associates (Finance 7.002 Edmonds City:2012LTRE) Page 7 Packet Pg. 254 8.2.d PFD ECA Contingent Loan Year Begin Bal Loan Amount Payments Interest End Bal 2011 - 393,362.00 - 120.61 393,482.61 2012 393,482.61 250,000.00 (88,473.53) 621.76 555,630.84 2013 555,630.84 180,000.00 - 863.13 736,493.98 2014 736,493.98 180,000.00 - 779.38 917,273.35 2015 917,273.35 125,000.00 - 1,417.23 1,043,690.58 2016 1,043,690.58 125,000.00 - 4,690.10 1,173,380.68 Packet Pg. 255 8.2.e Financial Statements Audit Report Edmonds Public Facilities District Snohomish County For the period January 1, 2014 through December 31, 2014 Published September 3, 2015 Report No. 1014984 Packet Pg. 256 8.2.e Washington State Auditor's Office September 3, 2015 Board of Directors Edmonds Public Facilities District Edmonds, Washington Report on Financial Statements Please find attached our report on the Edmonds Public Facilities District's financial statements. We are issuing this report in order to provide information on the District's financial condition. Sincerely, JAN M. JUTTE, CPA, CGFM ACTING STATE AUDITOR OLYMPIA, WA Insurance Building, P.O. Box 40021 ❑Olympia, Washington 98504-0021 ❑(360) 902-0370 ❑TDD Relay (800) 833-6388 Packet Pg. 257 8.2.e Status Of Prior Audit Findings....................................................................................................... 4 Independent Auditor's Report On Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards....................................................................... 5 Independent Auditor's Report On Financial Statements................................................................ 7 FinancialSection........................................................................................................................... 10 About The State Auditor's Office................................................................................................. 32 c c M c as c O m c LL a 2 �L d M LL V a 0 N r- O O C M C IL 0 LL a w c m E z c� a Washington State Auditor's Office Packet Pg. 258 8.2.e Edmonds Public Facilities District Snohomish County January 1, 2014 through December 31, 2014 This schedule presents the status of findings reported in prior audit periods. The status listed below is the representation of the Edmonds Public Facilities District. The State Auditor's Office has reviewed the status as presented by the District. Audit Period: Report Ref. No: Finding Ref. No: January 1, 2013 through 1012374 1 December 31, 2013 Finding Caption: The District's internal controls over accounting and financial statement preparation were inadequate to ensure accurate reporting. The District experienced turnover in a key accounting position, which resulted in a lack of oversight over bank reconciliations and journal entries. Additionally, District personnel responsible for recording day-to-day financial transactions did not have the technical knowledge needed to ensure the accounting records were accurate and complete. Also, allotted time to prepare and perform a technical review of the financial statements was not adequate to ensure consistency with Generally Accepted Accounting Principles (GAAP). This resulted in several errors that were subsequently corrected by the District. Background: Our audit identified deficiencies in internal controls that adversely affect the District's ability to ensure financial statements are reported accurately. Status of Corrective Action: (check one) ❑ Fully ❑x Partially ❑ No Corrective ❑ Finding is considered no Corrected Corrected Action Taken longer valid Corrective Action Taken: The District: • Altered their bank reconciliation process to ensure staff complete timely bank reconciliations for all bank accounts, • Created procedures to ensure journal entries are accurate, supported, and reviewed timely, • Provided staff responsible for preparing financial statements sufficient time, resources, and training to prepare the statements in accordance with GAAP. However, we determined during the current audit that the independent review of the financial statements was not thorough enough to ensure the statements are in compliance with the Budgeting, Accounting, and Reporting Standards (BARS) manual. Washington State Auditor's Office Packet Pg. 259 8.2.e Edmonds Public Facilities District Snohomish County January 1, 2014 through December 31, 2014 Board of Directors Edmonds Public Facilities District Edmonds, Washington We have audited, 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, the financial statements of the Edmonds Public Facilities District, Snohomish County, Washington, as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued our report thereon dated August 24, 2015. Our report includes information about the status of the District's financial condition. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements, we considered the District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. 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 District's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, Washington State Auditor's Office Packet Pg. 260 8.2.e or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the District's financial statements are free from material misstatement, we performed tests of the District'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. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. 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. JAN M. JUTTE, CPA, CGFM ACTING STATE AUDITOR OLYMPIA, WA August 24, 2015 Washington State Auditor's Office Packet Pg. 261 8.2.e Edmonds Public Facilities District Snohomish County January 1, 2014 through December 31, 2014 Board of Directors Edmonds Public Facilities District Edmonds, Washington REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of the Edmonds Public Facilities District, Snohomish County, Washington, as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed on page 10. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor Washington State Auditor's Office Packet Pg. 262 8.2.e considers internal control relevant to the District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Edmonds Public Facilities District, as of December 31, 2014, and the changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Matters of Emphasis Regarding Fiscal Sustainability As discussed in Note 12 to the financial statements, the District has continued to experience operating losses at year end. The District has had to borrow from the City of Edmonds in order to make debt service payments on outstanding bonds. The District's cash flow constraints are expected to continue in the near future. As a result, there exists uncertainty about the District's ability to maintain services at present levels under these conditions. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 11 through 15 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 Washington State Auditor's Office Packet Pg. 263 8.2.e responses to our inquiries, the basic financial statements, and other knowledge we obtained during our 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. OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated August 24, 2015 on our consideration of the District'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 an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance. 0;,,, �w � JAN M. JUTTE, CPA, CGFM ACTING STATE AUDITOR OLYMPIA, WA August 24, 2015 Washington State Auditor's Office Packet Pg. 264 8.2.e FINANCIAL SECTION Edmonds Public Facilities District Snohomish County January 1, 2014 through December 31, 2014 REQUIRED SUPPLEMENTARY INFORMATION Management's Discussion and Analysis — 2014 BASIC FINANCIAL STATEMENTS Statement of Net Position — 2014 Statement of Revenues, Expenses and Changes in Net Position — 2014 Statement of Cash Flows — 2014 Notes to Financial Statements — 2014 Washington State Auditor's Office Packet Pg. 265 8.2.e EDMONDS PUBLIC FACILITIES DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS The following discussion and analysis provides a narrative overview and analysis of Edmonds Public Facilities District's (EPFD) financial activities for the fiscal year ended December 31, 2014. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the Financial Statements and the Notes to the Financial Statements to enhance their understanding of the District's financial performance. FINANCIAL HIGHLIGHTS • The District's operating performance before depreciation was essentially break-even in FY 2014, with a very minor shortfall of ($1,062). The District's total net revenue from operations between FY 2010 and FY 2015 stands at $163,884. Due to shortfalls in sales tax revenues related to the economic crisis that began in 2008, the City of Edmonds has provided loans to the District to help meet its bond payment obligations, which is a requirement of a Contingent Loan Agreement between the two entities (see Note 3 in the Notes to the Financial Statements). The City of Edmonds loaned the District $180,000 for this purpose in FY 2014. The projected loan amount for FY 2015 is expected to fall to $125,000. This trend is expected to continue in the years ahead as the health of the overall economy improves. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction and an overview to Edmonds Public Facilities District's Basic Financial Statements. The District's Basic Financial Statements comprise two components: (1) Financial Statements, and (2) Notes to the Financial Statements. Financial Statements The District is a business -type activity, the purpose of which is to construct, maintain and operate a performing arts center within the boundaries of the District, which correspond to the boundaries of the City of Edmonds. Business -type activities are to be self-supporting through user fees and charges. The District is also supported by a legally separate entity, a 501(c)(3) not - for -profit corporation called Edmonds Center for the Arts (ECA), the purpose of which is to assist the District with community outreach, audience development and raising contributions from private sources to help support the operation of the Center. ECA is included in the Financial Statements of the District as a blended component unit. The statement of net position presents information on all of the District's assets and liabilities, with the difference between the two reported as net position. This statement is similar to the balance sheet of a private sector business. Over time, increases or decreases in net position may serve as useful indicators of improvement or deterioration in the District's overall financial position. The statement of revenues, expenses and changes in net position presents increases (revenue and gains) and decreases (expenses and losses) which show how the District's net position changed during the current year. All changes in net position are reported using the accrual basis of accounting, similar to the method used by most private -sector companies. The accrual basis of accounting requires that revenues be reported when they are earned and expenses reported when the goods and services are used, regardless of the timing of the cash flow. Washington State Auditor's Office Packet Pg. 266 EDMONDS PUBLIC FACILITIES DISTRICT 8.2.e The statement of cash flows reports cash receipts, cash payments and net changes in cash resulting from operating, non -capital financing, capital and related financing, and investing activities. Notes to the Financial Statements The Notes to the Financial Statements are integral to the Financial Statements. They provide additional disclosures that are essential to a full understanding of the Financial Statements. The Notes to the Financial Statements immediately follow the basic Financial Statements in this report. FINANCIAL ANALYSIS Statement of Net Position The Statement of Net Position can serve as a useful indicator to the District's financial position. The District's net position at December 31, 2014 totaled $4.1 Million. Following is a condensed version of the Statement of Net Position. Edmonds Public Facilities District Condensed Statement of Net Position Statement of Revenue, Expenses and Changes in Net Position The Statement of Revenue, Expenses and Changes in Net Position illustrate the increases or decreases in the net position of the District resulting from its current year operating activities. Following is a condensed version of the District's Statement of Revenues, Expenses and Changes in Net Position. Condensed Statement of Net Position Edmonds Public Facilities District 2014 2013 Current and other assets $ 361,570 $ 441,038 Capital assets (net) $ 12,953,142 $ 13,517,587 Total assets $ 13,314,712 $ 13,958,625 Current and other liabilities $ 923,558 $ 955,225 Long-term liabilities 8,266,733 8,551,111 Total liabilities $ 9,190,291 $ 9,506,336 NEF POSITION Net investment in capital assets Restricted Unrestricted Total net position $ 4,244,863 $ 4,566,408 488,616 572,378 (609,060) (686,497) $ 4,124,420 $ 4,452,289 Washington State Auditor's Office Packet Pg. 267 8.2.e EDMONDS PUBLIC FACILITIES DISTRICT Edmonds Public Facilities District Condensed Statement of Revenue, Expenses and Changes in Net Position Changes in Net Position Edmonds Public Facilities District 2014 2013 Revenues Operating revenues: $ 655,935 $ 550,167 Ticket sales 481,097 379,222 Rental revenues 95,550 91,304 Concessions 747,155 820,630 Non -operating revenues: Sales Tax 492,545 452,935 Miscellaneous 1,000 Interest and investment earnings (255) 115 Total Revenues $ 2,472,027 $ 2,295,373 Expenses Operating expenses $ 2,558,515 $ 2,319,022 Non -operating expenses 241,382 259,243 Total Expenses $ 2,799,897 $ 2,578,265 Change in net position $ (327,870) $ (282,892) Net position beginning 4,452,289 4,800,754 Prior period adjustment (65,573) Net position - end of period $ 4,124,420 $ 4,452,289 Differences due to rounding FINANCIAL CONDITION, RESULTS AND OUTLOOK Edmonds Public Facilities District, including its non -for -profit affiliate, Edmonds Center for the Arts (ECA), has continually improved its financial performance during the first eight years of operation. The following schedule provides relevant comparative data for the most recent five years of operation: Operating Rental Income (Loss) Ticket and Other Excluding Year Sales Revenues Contributions Depreciation 2010 $304,152 $352,490 $446,739 $ (43,167) 2011 $457,189 $393,019 $570,379 $ 1,451 2012 $424,993 $421,036 $684,755 $ 78,164 2013 $550,167 $470,526 $820,630 $ 128,498 2014 $655,935 $576,647 $747,155 $ (1,062) Washington State Auditor's Office Packet Pg. 268 8.2.e EDMONDS PUBLIC FACILITIES DISTRICT The District's five-year operating results as shown in the above schedule are notable achievements, particularly considering the challenging economic climate during those years. The District expects to maintain continued and improved profitability from this point forward. As the District's operating results have remained strong, its financial position has declined due to a significant shortfall in sales tax receipts. The District's Debt Service Fund comprises direct sales tax rebates from the State of Washington, contributions from Snohomish County Public Facilities District established by inter -local agreement, and a portion of net revenue generated by the operation of Edmonds Center for the Arts. The economic crisis that began in 2008 has resulted in annual differences of approximately $200,000 between projected sales tax revenues and actual receipts. In 2011, 2012 and 2013, the District's annual bond payments were met, in part, with loans from the City of Edmonds as prescribed in a Contingent Loan Agreement (CLA) between the two entities signed in 2008 (see Note 3 in the accompanying Notes to the Financial Statements). Under the terms of the CLA, the City of Edmonds is contractually obligated to advance to the District, as a loan, the amount of any shortfall in the District's Debt Service Fund each year. The City of Edmonds pledges its full faith and credit thereto. The City will continue to provide the same contingent financial support to the District for the life of the bonds. The District is making efforts to identify and secure new revenue streams to address annual shortfalls in sales tax revenues resulting from the economic crisis, both to pay back past loans, and to eliminate the need for future loans from the City to help meet annual debt obligations. Some positive new indicators and developments include: At this time, the City of Edmonds and Snohomish County are experiencing gradual increases in sales tax revenue. If macro -economic conditions continue to improve, the sales tax revenues the District receives should also increase and will help close the gap between non -operating revenue and expense. The District is also receiving additional funds from the Snohomish County Public Facilities District in 2015 (Tier 2 allocation) for just the second time since FY 2009. The District will receive $52,588 from this Tier 2 allocation in 2015, and the District projects that this secondary allocation will increase in FY 2016 to as much as $70,000, further closing the gap between sales tax revenues and bond debt expense. • Total Operating Revenue has nearly doubled since 2010, increasing from $1,103,381 in 2010 to $1,979,737 in 2014. Further, the District has maintained a healthy balance between earned revenue (61 %) and contributed revenue (39%). • Contributed revenue from individuals, corporations and foundations has grown significantly since 2010. As Edmonds Center for the Arts has gained recognition and attracted larger audiences, it has also earned the trust of its audience members and patrons who have invested more each year in support of the Center's programs, services and operations. • Net revenue from operations, before depreciation, was $78,164 in FY 2012 and $119,402 in FY 2013. The District has used a portion of this net operating revenue to help pay down long-term debt over the past three years, and a portion has been utilized for facility maintenance. In May, 2013, the Boards of Edmonds Public Facilities District and Edmonds Center for the Arts adopted a comprehensive strategic business plan (SBP), which includes strategies designed to ensure the long-term financial stability and sustainability of the District and the Center. The plan was updated during a retreat session held by the District Board on December 19, 2014. One of the five Washington State Auditor's Office Packet Pg. 269 8.2.e EDMONDS PUBLIC FACILITIES DISTRICT key focal points of the SBP is "Funding and Finance," which focuses on securing new sources of revenue to help eliminate the District's annual capital shortfall, and prepare for capital asset replacement and improvements. The Center's Development Committee has been assigned to implement this component of the plan. A copy of the District's Strategic Business Plan may be obtained by contacting the District's Executive Director. BUDGET VARIANCES IN THE GENERAL OPERATING FUND The District's Operating Budget for FY 2014 projected a break-even performance. The District's actual result before depreciation for FY 2014 was a negligible loss of ($1,062). Revenues were higher than the original budget forecast by $63,238. Ticket Sales and Rental Revenues far exceeded budgeted goals, while actual revenues from Concessions and Contributions did not meet budget expectations. Operating expenses before depreciation exceeded the budget forecast by $64,300. The primary reason for this cost overrun was an unbudgeted investment in contracted services to assist with improvements in the District's Accounting and Finance Department. These investments were made in response to recommendations from the State Auditor's Office following the District's FY 2013 Audit, and have resulted in vastly improved accounting systems, procedures, and reporting mechanisms. Requests for Information The financial statements are designed to provide users with a general overview of the District's finances as well as to demonstrate accountability to its citizens, investors, creditors, and other customers. If you have a question about this report, please contact Edmonds Public Facilities District, 410 Fourth Avenue North, Edmonds, Washington, WA 98020, (425) 275-4485. Washington State Auditor's Office Packet Pg. 270 8.2.e ASSETS: Edmonds Public Facilities District Statement of Net Position For the Year Ending December 31 st, 2014 Current Assets: Cash and cash equivalents - unrestricted $ 103,622 Cash and cash equivalents - restricted 45,808 Customer accounts receivable 40,827 Pledges receivable 41,267 Due from other governments 58,379 Inventory 4,317 Prepayments 67,351 Total current assets $ 361,570 Noncurrent Assets: (Note 4) Land $ 3,444,885 Construction in Progress $ 13,270 Buildings, equipment, furniture and other depreciable assets 14,347,154 Accumulated depreciation (4,852,167) Total noncurrent assets $ 12,953,142 TOTAL ASSETS 13,314,712 LIABILITIES: Current Liabilities: Accounts payable $ 36,900 Wages and benefits payable 47,203 Unearned ticket sales and other unearned revenue 352,642 Liability for customer deposits 13,725 Accrued interest 20,428 Current portion of long-term liabilities 452,660 Total current liabilities $ 923,558 Noncurrent Liabilities: Note payable $ 18,346 Bond payable 3,090,000 Contractual obligation to the City of Edmonds 4,230,000 Loan payable to the City of Edmonds 917,273 Liability for compensated absences 11,114 Total noncurrent liabilities $ 8,266,733 TOTAL LIABILITIES 9,190,291 NET POSITION: Net investment in capital assets $ 4,244,863 Restricted 488,616 Unrestricted (609,060) TOTAL NET POSITION 4,124,420 TOTAL LIABILITIES AND NET POSITION 13,314,712 The accompanying notes are an integral part of these financial statements Difference due to rounding Washington State Auditor's Office Packet Pg. 271 8.2.e Edmonds Public Facilities District Statement of Revenues, Expenses and Changes in Net Position For the Year Ending December, 31 st 2014 OPERATING REVENUES: 12/31/2014 Ticket sales $ 655,935 Rental revenues 481,097 Concessions 95,550 Contributions received 747,155 Total operating revenues $ 1,979,738 OPERATING EXPENSES: Artists' presentations and theater $ 540,341 Advertising and marketing 144,367 Development 85,439 Salaries and employee benefits 838,667 Facilities: maintenance and utilities 156,941 Contracted services 55,020 Depreciation 577,715 Supplies and other operating expenses 160,025 Total operating expenses $ 2,558,515 Operating income (loss) $ (578,777) NON -OPERATING REVENUES AND (EXPENSES): Intergovernmental revenues $ 492,545 I nterest expense $ (241,382) Interest earned $ 260 Loss/gain on stock realized $ (515) Total non -operating revenues and expenses $ 250,907 Net Income (loss) $ (327,870) BEGINNING NET POSITION $ 4,452,289 END OF YEAR NET POSITION $ 4,124,420 9anying notes are an integral part of these financial statements Washington State Auditor's Office Packet Pg. 272 8.2.e Edmonds Public Facilities District Statement of Cash Flows For the Year Ended December 31, 2104 Cash Flows from Operating Activities: Cash received from customers $ 1,122,343 Cash contributions received 737,026 Cash payments to suppliers (1,139,000) Cash payments to employees for services $ (822,949) Net cash provided (used) by operating activities $ (102,580) Cash Flows from Noncapital Financing Activities: Net cash borrowed from the City of Edmonds $ 180,779 Net interfund transfers - Net cash flows provided from noncapital financing activities $ 180,779 Cash Flows from Capital and Related Financing Activities Receipt of sales taxes and other intergovernmental payments $ 491,996 Principal paid on long-term debt 2008 bonds payable (170,000) Contractual Obligation to the City of Edmonds (245,000) Interest paid on long-term debt (247,286) Principal and interest paid on other debt (4,886) Purchase of capital assets Net cash provided by investing activities $ (175,176) Cash Flows from Investing Activities Interest received on investments 260 Net cash provided by investing activities $ 260 Net increase (decrease) in cash and cash equivalents (95,057) Beginning cash and cash equivalents 244,487 Ending cash and cash equivalents $ 149,430 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating Income (loss) $ (578,777) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense, net $ 577,715 Changes in assets and liabilities: (Increase) decrease in investments available for sale $ 484 (Increase) decrease in accounts receivable (11,106) (Increase) decrease in inventory (945) Increase (decrease) Due from government 342 Increase (decrease) in pledges receivable 4,914 (Increase) decrease in operating prepayments (8,795) (Increase) decrease construction in Progress (13,270) Increase (decrease) in wages and benefits payable (5,718) (Increase) decrease in accounts payable 5,377 (Increase) decrease accrued interest on bond obligations (549) (Increase) decrease in unearned revenue 39,767 Increase (decrease) in unearned customer rental (99,133) Increase (decrease) in liability for compensated absences (12,889) (Increase) decrease in rounding 3 Total adjustments $ 476,197 Net cash provided (used) by operating activities $ (102,580) The accompanying notes are an integral part of these financial statements Washington State Auditor's Office Packet Pg. 273 8.2.e NOTES TO THE FINANCIAL STATEMENTS NOTE 1 SIGNIFICANT ACCOUNTING POLICIES The financial statements of Edmonds Public Facilities District (referred to hereafter as the "District") comprise the accounts of the District per se, a government body, and its private -sector not -for -profit affiliate, Edmonds Center for the Arts (ECA). The inclusion of ECA as a "blended component unit" is in accordance with Statement No. 61 of the Governmental Accounting Standards Board, "The Financial Reporting Entity: Omnibus." Component Units: The District is a municipal corporation in the State of Washington. It was created in 2001 by City of Edmonds Ordinance No. 3358 pursuant to Chapter 35.57 of the Revised Code of Washington to "design, construct, operate, and maintain an undesignated public facility." It is a discreet component unit of the City of Edmonds Its governing board is appointed by the City Council of Edmonds and comprises five members who serve staggered four-year terms, with one term renewal permitted. Edmonds Center for the Arts is a not -for -profit corporation organized and operated in conformity with Section 501(c) (3) of the Internal Revenue Code. ECA's activities are limited to providing support for the District and its performing arts center. ECA conducts various activities to raise funds, primarily from private -sector sources, including individuals, corporations and other businesses, and foundations. Its twenty -member Board of Directors is appointed by the Board of the District for three-year terms renewable two times. ECA Board members provide advice and counsel to the entity as a whole. Basis of Accounting: Edmonds Public Facilities District follows accounting standards promulgated by the Governmental Accounting Standards Board (GASB). The District conducts what is described as "business -type activities" in various GASB Statements. Revenue Recognition: The District receives and records operating revenue from the sources described below. It records sales tax rebate receipts, intergovernmental revenues, as well as interest and other investment revenues as non - operating revenues. (1) Ticket Sales to Performances are recorded as a liability "Unearned ticket sale revenues" prior to performances. Ticket sale revenues are recognized at the date of each performance. Tickets returned by patrons prior to performances are recorded as contribution revenue at amounts equal to the original ticket sale prices. (2) Rental Revenue is derived from rentals of the auditorium, as well as other areas of the building. Rentals received in advance are recorded as "Unearned rental revenues," a liability on the Statement of Net Position. Unpaid rents are recorded as accounts receivable. (3) Sales Tax Revenue and Intergovernmental Revenue are recorded as non -operating revenues on the Statement of Revenues, Expenses and Changes in Net Position. District sales tax revenue represents a rebate of a portion of State of Washington sales taxes assessed and collected within the District. Intergovernmental revenue consists of the proceeds of an Inter -local Agreement between the City of Edmonds, Edmonds Public Facilities District, Snohomish County, and the Snohomish County Public Facilities District. That agreement, inter alia, provides for rebates of sales taxes assessed and collected elsewhere in Snohomish County to public facilities districts in the county, including the District. Under the agreements which generate these revenues, they must be used first to pay the annual principal and interest on the District's long-term debt. The debt that must be so serviced comprises the District's 2008 Sales Tax Obligation and Refunding Bonds (see Note 6) and also the 2012 Contractual Obligation to the City of Edmonds (see Note 7). In any fiscal year in which the Sales Tax and Intergovernmental Revenues exceed the amounts required to service those two liabilities, the excess may be used by the District for operations, capital expenditures, or other debt reduction. Washington State Auditor's Office Packet Pg. 274 8.2.e The Sales Tax and Intergovernmental Revenues are recorded as revenue during the fiscal period in which they are assessed. Revenues earned but not yet received are recorded in the Statement of Net Position in the current asset line titled "Due from other governments." Contributions are the principal revenue source for Edmonds Center for the Arts. They are received in three different forms: (1) cash and credit card charges; (2) donation of financial instruments, unused performance tickets, and tangible personal property; and (3) the rendering of services by volunteers. Contributions are recorded as revenue when they are in the form of voluntary unconditional promises to give. ECA's policy is to liquidate donated financial instruments immediately upon receipt and record revenue at that time equal to the amount of cash received from the liquidation. Tangible assets are recorded as revenue, measured at their fair value, on the date they are placed in service. They are recorded either as operating expense or capital assets, in accordance with the capitalization policy described below in "Capital Assets." In -kind services are recorded as revenue and expense on the Statement of Revenues, Expenses and Changes in Net Position. Contribution revenues and operating expenses each increased by $683 to account for donated business services. Concessions sales are also a source of revenue to ECA. They are recorded at the time of sale. Expense Recognition: The District's operating expenses include all costs associated with its presenting, rental and concessions businesses, as well as the costs associated with administration and fund raising. Financial costs, principally interest expense, are recorded as non -operating expenses. Inventories: Inventories consist primarily of goods held for sale as concessions. Inventories are valued at historic cost under the FIFO. Capital Assets: Capital assets include land, buildings, equipment and technology/software. The District capitalizes purchased and donated items having a useful life of more than one year and an acquisition value in excess of $5,000. Purchased assets are recorded at cost and donated assets are recorded at their fair value when placed in service. The District's major capital asset is its renovated auditorium and the un- renovated structure of which it forms a part. That building is being depreciated over 25 years on the straight-line method. Other capital assets, with the exception of land, are depreciated over their estimated useful lives and also on the straight-line method. Land and construction in progress is not depreciated. Cash and Cash Equivalents: This item includes cash on hand and in banks plus the Local Investment Pool (LGIP). All District and ECA deposits are insured by Federal Depository Insurance Corporation (FDIC) coverage limits. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for coverage over $250,000 if they have funds in different ownership categories and all FDIC requirements are met. All deposits that an accountholder has in the same ownership category at the same bank are added together and insured up to the standard insurance amount. 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. Washington State Auditor's Office Packet Pg. 275 8.2.e NOTE 2 COMPENSATED ABSENCES Vacation time with pay is available to eligible regular full-time employees. The amount of vacation time employees receive each year increases with the length of the employee's employment. Vacation time begins to accrue with the employee's first full pay period. Vacation time accrues for regular full-time employees as follows: Length of Service 0-1 years 2-4 years 5+ years Accrual Rate Per Year 5 days (40 hours) 10 days (80 hours) 15 days (120 hours) Employees who do not use accrued vacation time during the current year can carry over one year's accrual only to the following year. Any carry over time not taken beyond the one year will be forfeited. Accrued but unused vacation time will be paid out upon separation from employment. NOTE 3 AGREEMENTS WITH THE CITY OF EDMONDS On July 14, 2008, the District entered into a Contingent Loan Agreement (CLA) with the City of Edmonds (the City) providing credit support for the District's $4,000,000 Sales Tax Obligation and Refunding Bonds of 2008. (See Note 6) The CLA states that the City pledges its "full faith, credit and resources" in an "absolute and unconditional" obligation to lend money to the District for the purpose of paying debt service on the bonds Due to a shortfall in sales tax revenues which are dedicated to servicing bond debt, the District did not receive sufficient funds to meet its debt service obligations and therefore borrowed from the City in 2012, 2013, and in 2014 amounts shown in the schedule below: 2012 2013 2014 Balance at January 1 $310,176 $$556,631 $736,494 Adjustment to conform balance at January 1, 2013 to the balance reported by the City of Edmonds on that date -0- (1,000) -0- Balance at January 1, as adjusted ------ ----- 310,176 ------------ 555,631 ------------ 736,494 New borrowing during the year 333,524 180,000 180,000 Interest accrued during the year 931 863 779 Less: repayments (88,000) ------------ -0- ------------ -0- ------------ Balance at December 31 $556,631 $736,494 $917,273 In a letter dated January 29, 2014, the District agreed to restrict its receipts of sales taxes and sales tax rebates first to the servicing of the District's Contractual Obligation to the City of Edmonds. Receipts in excess of the requirements to service that debt are unrestricted. It has been the past practice of the District to apply any such excess to the servicing of its 2008 Sales Tax Obligation and Refunding Bonds. The District expects to continue that practice in the future. Note 6 has additional information about the 2008 Sales Tax Obligation and Refunding Bonds, and Note 7 has detailed information about the Contractual Obligation to the City of Edmonds. Washington State Auditor's Office Packet Pg. 276 8.2.e NOTE 4 — CAPITAL ASSETS The schedule that follows shows beginning and ending balances, as well as the changes in capital assets and accumulated depreciation during the year ended December 31, 2014. Schedule of Capital Asset Activity Balance Balance 1/1/2014 Increases Decreases 12/31/2014 Capital assets, not being depreciated: Land $ 3,444,885 $ - $ - $ 3,444,885 Construction in Progress - 13,270 - 13,270 Total capital assets, not being depreciated: 3,444,885 13,270 - 3,458,155 Capital assets, being depreciated Building 14,014,486 - - 14,014,486 Furniture and Equipment 292,890 - - 292,890 Technology and Software 39,778 - - 39,778 Total capital assets being depreciated: 14,347,154 - - 14,347,154 Less accumulated depreciation for: Building Furniture and Equipment Technology and Software Total accumulated depreciation: Total capital assets, being depreciated, net: Total capital assets, net: NOTE 5 NOTE PAYABLE (4,056,491) (560,579) - (4,617,070) (205,484) (11,928) - (217,412) (12,477) (5,208) - (17,685) (4,274,452) (577,715) - (4,852,167) 10,072,702 (577,715) - 9,494,987 $ 13, 517, 587 $ (564, 445) $ - $ 12, 953,142 The amounts of the Piano note payable at January 1, 2014 and at December 31, 2014 and the changes therein are as follows: Balance at January 1, 2014 $ 23,232 Total payments during 2014 $ 5,047 Less: Interest (2,413) Casualty insurance (418) Reduction of principal (2,216) Balance at December 31, 2014 $ 21,006 At December 31, 2014, the balance comprised the current portion of the note payable of $2,660, and the non -current portion of $18,346. Washington State Auditor's Office Packet Pg. 277 8.2.e NOTE 6 BOND PAYABLE In 2008, Edmonds Public Facilities District issued Sales Tax Obligation and Refunding Bonds in the amount of $4,000,000. The proceeds were used to refund the District's outstanding balance on its 2005 General and Revenue Obligation Line of Credit ($3,883,804). The remaining proceeds were used to pay bond issuance costs and a portion was placed in reserve for future debt payments. The Bonds were issued pursuant to chapters 35.57 and 39.46 of the Revised Code of Washington and Resolution No. 27 adopted by the District's Board of Directors. Increasing amounts of bond principal and interest become payable each year in accordance with the following schedule: Year Payable Principal Interest Total Payment 2015 185,000 141,295 326,295 2016 210,000 132,970 342,970 2017 225,000 123,520 348,520 2018 250,000 114,295 364,295 2019 265,000 104,045 369,045 2020-2023 1,315,000 292,780 1,607,780 2024-2025 825,000 55,000 880,000 Totals -------------- $3,275,000 -------- -------- -------------- $963,905 -------- -------- -------------- $4,238,905 -------- -------- Changes in the 2008 Sales Tax Obligation and Refunding Bonds during the year ended December 31, 2014 were as follows: Current Long -Term Portion Portion Total Bond Balance at December 31, 2013 $170,000 $3,275,000 $3,445,000 Principal payment during 2014 (170,000) (170,000) Reclassified to current during 2014 185,000 (185,000) Balance at December 31, 2014 $185,000 $3,090,000 $3,275,000 NOTE 7 CONTRACTUAL OBLIGATION TO THE CITY OF EDMONDS In 2002 Edmonds Public Facilities District became obligated under an inter -local agreement with the City of Edmonds to apply its receipts of sales tax rebate revenues first to the City over the life of the City's Limited General Obligation Bonds issued in 2002. A major portion of the proceeds of that bond issue was used for the acquisition, renovation and initial operation of a Performing Arts Center by the District. The sales tax rebate revenues of the District were to be used to repay that portion of the bond issue, plus interest thereon, and that obligation was duly recorded as long-term debt of the District. On October 12, 2012, the City of Edmonds issued Limited Tax General Obligation Refunding Bonds with a face amount of $5,650,000. The proceeds from that bond issue were used to retire the City of Edmonds Limited General Obligation Bonds issued in 2002. At that time, it was determined that the 2012 refunding bonds were wholly a liability of the City of Edmonds and should not be reported as a Bond Payable liability of the District. However, the District remains contractually obligated to the City of Edmonds to continue to apply its sales tax receipts first to the City under the Inter -local agreement. The liability to the City has been appropriately recorded on the District's Statement of Net Position as "Contractual Obligation to the City of Edmonds." The amount of the District's obligation to the City at the date of refunding was $4,965,000 with interest rates ranging from 1.75% to 3.0%, depending on the maturity of each principal installment. The bonds are scheduled to be retired in annual amounts beginning in 2013, continuing through 2026. The District is obligated to remit sales tax rebate receipts to the City of Edmonds in support of the City's servicing of its Limited Tax General Obligation Refunding Bonds of 2012 as per the schedule below. Under Washington State Auditor's Office Packet Pg. 278 8.2.e the Inter -local agreement, those are the maximum amounts of sales tax rebate receipts that the District is obliged to transfer to the City each year through the remaining life of the bonds. Calendar Year Principal Interest Total 2015 265,000 91,293 356,293 2016 285,000 85,992 370,992 2017 305,000 80,293 385,293 2018 330,000 74,192 404,192 2019 350,000 67,593 417,593 2020-2023 1,660.000 187,270 1,847,270 2024-2026 1,300,000 46,620 1,346,620 $4,495,000 $633,253 $5,128,253 ----------------------- ----------------------- Changes in the Contractual Obligation to the City of Edmonds during the year ended December 31, 2014 were as follows: Balance at December 31, 2013 Principal payment during 2014 Reclassified to current during 2014 Balance at December 31, 2014 NOTE 8 UNEARNED REVENUES Current Long -Term Portion Portion Total Debt $245,000 $4,495,000 $4,740,000 (245,000) (245,000) 265,000 (265,000) $265,000 $4,230,000 $4,495,000 As explained in Note 1, the District records ticket receipts as Unearned Ticket Sales until the date of the performance, except when unused tickets are returned and recorded as contribution revenue. (Correspondingly, artist fees paid in advance are recorded as prepayments until the date of the performance.) In addition, the District sells tickets on behalf of certain rental clients, whereas in certain other cases it receives rental payments in advance of the clients' use of the District's facilities. Advance ticket sales plus unearned rental receipts are recorded by the District as liabilities until the ticket sale proceeds are remitted to the client; and until the rent is earned on the dates of the clients' performances. At December 31, 2014, the amounts of unearned revenues were: Unearned ticket sale revenue ................................... $286,367 Unearned rental revenues ........................................ 65,685 Other......................................................................... 590 Total ticket sale and rental liabilities $352,642 At that same date, prepaid artists' fees, which are included in Prepayments on the District's Statement of Net Position (under Current Assets), totaled $48,538. Washington State Auditor's Office Packet Pg. 279 8.2.e NOTE 9 PENSION PLAN All full-time and certain part-time employees of the District participate in the Public Employees' Retirement System (PERS), administered by the Washington State Department of Retirement Systems. PERS is a defined -contribution plan, in which the obligation to pay pension benefits is a liability of the Washington State Department of Retirement Systems. The obligation of the District and its participating employees is to make periodic and timely contributions to the plan. Public Employees' Retirement System (PERS) Plans 1, 2, and 3 Plan Description The Legislature established PERS in 1947. Membership in the system includes: elected officials; state employees; employees of the Supreme, Appeals, and Superior courts; employees of legislative committees; employees of district and municipal courts; and employees of local governments. Membership also includes higher education employees not participating in higher education retirement programs. Approximately 49 percent of PERS salaries are accounted for by state employment. PERS retirement benefit provisions are established in Chapters 41.34 and 41.40 RCW and may be amended only by the State Legislature. 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 3 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 Plan 3. The option must be exercised within 90 days of employment. Employees who fail to choose within 90 days default to Plan 3. PERS is comprised of and reported as three separate plans for accounting purposes: Plan 1, Plan 2/3, and Plan 3. Plan 1 accounts for the defined benefits of Plan 1 members. Plan 2/3 accounts for the defined benefits of Plan 2 members, and the defined benefit portion of benefits for Plan 3 members. Plan 3 accounts for the defined contribution portion of benefits for Plan 3 members. Although members can only be a member of either Plan 2 or Plan 3, the defined benefit portions of Plan 2 and Plan 3 are accounted for in the same pension trust fund. All assets of this Plan 2/3 may legally be used to pay the defined benefits of any of the Plan 2 or Plan 3 members or beneficiaries, as defined by the terms of the plan. Therefore, Plan 2/3 is considered to be a single plan for accounting purposes. PERS Plan 1 and Plan 2 retirement benefits are financed from a combination of investment earnings and employer and employee contributions. Employee contributions to the PERS Plan 1 and Plan 2 defined benefit plans accrue interest at a rate specified by the Director of DRS. During DRS' Fiscal Year 2013, the rate was five and one-half percent compounded quarterly. Members in PERS Plan 1 and Plan 2 can elect to withdraw total employee contributions and interest thereon, in lieu of any retirement benefit, upon separation from PERS-covered employment. PERS Plan 1 members are vested after the completion of five years of eligible service. PERS Plan 1 members are eligible for retirement from active status at any age with at least 30 years of service, at age 55 with 25 years of service, or at age 60 with at least 5 years of service. Plan 1 members retiring from inactive status prior to the age of 65 may receive actuarially reduced benefits. The monthly benefit is 2 percent of the average final compensation (AFC) per year of service, but the benefit may not exceed 60 percent of the AFC. The AFC is the monthly average of the 24 consecutive highest -paid service credit months. PERS Plan 1 retirement benefits are actuarially reduced to reflect the choice, if made, of a survivor option. Washington State Auditor's Office Packet Pg. 280 8.2.e 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 provides duty and non -duty disability benefits. Duty disability retirement benefits for disablement prior to the age of 60 consist of a temporary life annuity. The benefit 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, at which time the benefit is converted to the member's service retirement amount. A member with five years of covered employment is eligible for non -duty disability retirement. Prior to the age of 55, the benefit amount is 2 percent of the AFC for each year of service reduced by 2 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. Plan 1 members may elect to receive an optional COLA amount (based on the Consumer Price Index), capped at 3 percent annually. To offset the cost of this annual adjustment, the benefit is reduced. 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 2 percent of the AFC per year of service. The AFC is the monthly average of the 60 consecutive highest -paid service months. 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 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 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, if hired prior to May 1, 2013: • With a benefit that is reduced by 3 percent for each year before age 65; or • With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return -to -work rules. PERS Plan 2 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of 5 percent for each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30 years of service. PERS Plan 2 retirement benefits are actuarially reduced to reflect the choice, if made, of a survivor option. PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component and member contributions finance a defined contribution component. As established by Chapter 41.34 RCW, employee contribution rates to the defined contribution component range from 5 percent to 15 percent of salaries, based on member choice. Members who do not choose a contribution rate default to a 5 percent rate. There are currently no requirements for employer contributions to the defined contribution component of PERS Plan 3. PERS Plan 3 defined contribution retirement benefits are dependent upon the results of investment activities. Members may elect to self -direct the investment of their contributions. Any expenses incurred in conjunction with self -directed investments are paid by members. Absent a member's self -direction, PERS Plan 3 contributions are invested in the Retirement Strategy Fund that assumes the member will retire at age 65. Washington State Auditor's Office Packet Pg. 281 8.2.e For DRS' Fiscal Year 2013, PERS Plan 3 employee contributions were $99.0 million, and plan refunds paid out were $69.4 million. The defined benefit portion of PERS Plan 3 provides members a monthly benefit that is 1 percent of the AFC per year of service. The AFC is the monthly average of the 60 consecutive highest -paid service months. There is no cap on years of service credit, and Plan 3 provides the same cost -of -living allowance as Plan 2. 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 by 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, and were hired before May 1, 2013, 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. • If they have 30 service credit years, are at least 55 years old, and were hired after May 1, 2013, they have the option to retire early by accepting a reduction of 5 percent for each year before age 65. PERS Plan 3 benefits are actuarially reduced to reflect the choice, if made, of a survivor option. 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 2 percent of the AFC per year of service. For Plan 3, the monthly benefit amount is 1 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 members meeting specific eligibility requirements have options available to enhance their retirement benefits. Some of these options are available to their survivors. A one-time duty -related death benefit is provided to the beneficiary or the estate of a PERS member who dies as a result of injuries sustained in the course of employment, or if the death resulted from an occupational disease or infection that arose naturally and proximately out of the member's covered employment, if found eligible by the Department of Labor and Industries. From January 1, 2007 through December 31, 2007, judicial members of PERS were given the choice to elect participation in the Judicial Benefit Multiplier (JBM) Program enacted in 2006. Justices and judges in PERS Plan 1 and Plan 2 were able to make an 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. 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. Washington State Auditor's Office Packet Pg. 282 8.2.e 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 6 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. 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. 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 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 payrolls, as of December 31, 2014, are as follows: Members Not Participating in JBM: PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer* 9.21 %** 9.21 %** 9.21 %*** Employee 6.00%**** 4.92%**** ***** * The employer rates include the employer administrative expense fee currently set at 0.18%. ** The employer rate for state elected officials is 13.73% for Plan 1 and 9.21 % 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 4.92% for Plan 2. ***** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member Members Participating in JBM: PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer -State 11.71 % 11.71 % 11.71 %** Agency* Employer -Local 9.21 % 9.21 % 9.21 %** Gov't Units* Employee -State 9.76% 9.80% 7.50%*** Agency Employee -Local 12.26% 12.30% 7.50%*** Gov't Units * The employer rates include the employer administrative expense fee currently set at 0.18%. ** Plan 3 defined benefit portion only. ***Minimum rate. Washington State Auditor's Office Packet Pg. 283 8.2.e Both district and the employees made the required contributions. The district's required contributions for the years ended December 31 were as follows': PERS Plan 1 PERS Plan 2 PERS Plan 3 2014 $ 0 $ 45,419 $ 1,446 2013 $ 0 $ 33,589 $ 0 2012 $ 0 $ 39,285 $ 0 The Department of Retirement Systems (DRS) 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, PO Box 48380, Olympia, WA 98504-8380. NOTE 10 LONG-TERM RENTAL AGREEMENT The District has entered a long-term agreement with a rental customer for the use of certain of its facilities on designated future dates. The initial term of the agreement was ten years, which expired on October 31, 2013, with the tenant having options to renew for three successive five-year terms. The tenant exercised its option and the agreement now extends through December 31, 2018, with options for two additional five-year terms. The rent is received in monthly payments by the District and totaled $74,655 in 2014, which is included in "Rental Revenues" on the District's Statement of Revenues, Expenses and Changes in Net Position. The rent will increase by 3% per annum in each future year, including renewals. Rents for the years 2015-2018 will be: Year 2015 $ 76,895 Year 2016 $ 79,201 Year 2017 $ 81,574 Year 2018 $ 84,021 NOTE 11 RISK MANAGEMENT Property/Casualty Risk: Edmonds PFD is a member of Enduris. Chapter 48.62 RCW provides the exclusive source of local government entity authority to individually or jointly self -insure risks, jointly purchase insurance or reinsurance, and to contract for risk management, claims, and administrative services. Enduris was formed July 10, 1987 pursuant to the provisions of Chapter 48.62 RCW, Chapter 200-100 WAC, and Chapter 39.34 RCW. Two(2)counties and two (2) cities in the State of Washington joined together by signing an Interlocal Governmental Agreement to fund their self -insured losses and jointly purchase insurance and administrative services. As of August 31, 2014, there are 491 Enduris members representing a broad array of special purpose districts throughout the state. Washington State Auditor's Office Packet Pg. 284 8.2.e Enduris members share in the self -insured retention, jointly purchase excess and/or reinsurance coverage and provide risk management services and other related administrative services. Enduris provides "per occurrence" based policies for all lines of liability coverage including Public Official's Liability. The Property coverage is written on an "all risk", blanket basis using current Statement of Values. The Property coverage includes but is not limited to mobile equipment, electronic data processing equipment, business interruption, course of construction and additions, property in transit, fine arts, and automobile physical damage to insured vehicles. Boiler and machinery coverage is included on a blanket limit of $100 million for all members. Enduris offers crime coverage up to a limit of $1,000,000 per occurrence. Members make an annual contribution to fund Enduris. Enduris acquires reinsurance from unrelated insurance companies on a "per occurrence" basis: $1,000,000 deductible on liability loss - the member is responsible for the first $1,000 of the deductible amount of each claim, while Enduris is responsible for the remaining $999,000 on liability loss. • $250,000 deductible on property loss - the member is responsible for the first $1,000 of the deductible amount of each claim, while Enduris is responsible for the remaining $249,000 on property loss. Enduris is responsible for the $4,000 deductible on boiler and machinery loss. Insurance carriers cover all losses over the deductibles as shown on the policy maximum limits. Since Enduris is a cooperative program, there is a joint liability among the participating members. The contract requires members to continue membership for a period of not less than one (1) year and must give notice 60 days before terminating participation. The Master Agreement (Intergovernmental Contract) is automatically renewed after the initial one (1) full fiscal year commitment. Even after termination, a member is still responsible for contribution to Enduris for any unresolved, unreported and in -process claims for the period they were a signatory to the Master Agreement. Enduris is fully funded by its member participants. Claims are filed by members with Enduris and are administered in house. A Board of Directors consisting of seven (7) board members governs Enduris. Its members elect the Board and the positions are filled on a rotating basis. The Board meets quarterly and is responsible for conducting the business affairs of Enduris. The District believes its various property and casualty risks are covered appropriately by its Enduris membership. The District filed one claim during 2014, in the amount $6,833 for gym roof repairs, due to a storm This is the first claim on insurance related items with Enduris during the most recent three-year period. The amount of settlements did not exceed insurance coverage in each of the past three years. NOTE 12 — FINANCIAL CONDITION The District's operating revenue improved in 2014. However, the District did experience operating loss at year-end. In 2014, the District's depreciation expense comprised 23% of the District's reported operating expenses. Without this depreciation expense, the District's operating loss would total just $1,062. Washington State Auditor's Office Packet Pg. 285 8.2.e Although the local economy has improved, sales tax receipts still are below historic levels. These lower -than - expected receipts continue to impact the District's Debt Service Fund. The District relies on these revenues to meet annual debt service obligations. To help address this revenue challenge the Boards of Edmonds Public Facilities District and Edmonds for the Center of the Arts adopted a comprehensive strategic business plan in May, 2013 which includes strategies designed to ensure the long-term financial stability and sustainability of the District and the Center. One of the five key focal points of the strategic business plan is "Funding and Finance" which focuses on securing new sources of revenue to help eliminate the District's annual capital shortfall, and prepare for capital asset replacement and improvements. One major component of the plan involves the development of new programs and rental partners to increase earned and contributed revenue. The District's Board and Management Team believe the financial condition of the District is stable and that the execution of the Strategic Business Plan will be successful in generating new sources of operating revenue. NOTE 13 — SUBSEQUENT EVENTS On June 30t", the Washington State Legislature passed the State's budget, which included $250,000 for the purpose of replacing the roof over the gymnasium and classroom spaces. Washington State Auditor's Office Packet Pg. 286 8.2.e 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. We work with our audit clients and citizens to achieve our vision of government that works for citizens, by helping governments work better, cost less, deliver higher value, and earn greater public trust. In fulfilling our mission to hold state and local governments accountable for the use of public resources, we also hold ourselves accountable by continually improving our audit quality and operational efficiency and developing highly engaged and committed employees. 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. 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 as well as fraud, state whistleblower and citizen hotline investigations. The results of our work are widely distributed through a variety of reports, which are available on our website and through our free, electronic subscription service. We take our role as partners in accountability seriously, and provide training and technical assistance to governments, and have an extensive quality assurance program. Contact information for the State Auditor's Office Deputy Director for Communications Thomas Shapley Thomas. S hapley(a, sao.wa. gov (360) 902-0367 Public Records requests (360) 725-5617 Main telephone (360) 902-0370 Toll -free Citizen Hotline (866) 902-3900 Website www.sao.wa.gov Washington State Auditor's Office Packet Pg. 287 8.2.f Financial Statements Audit Report Edmonds Public Facilities District Snohomish County For the period January 1, 2015 through December 31, 2015 Published September 26, 2016 Report No. 1017300 El' Packet Pg. 288 8.2.f Washington State Auditor's Office September 26, 2016 Board of Directors Edmonds Public Facilities District Edmonds, Washington Report on Financial Statements Please find attached our report on the Edmonds Public Facilities District's financial statements. We are issuing this report in order to provide information on the District's financial condition. Sincerely, J��Y '0,t� TROY KELLEY STATE AUDITOR OLYMPIA, WA Insurance Building, P.O. Box 40021 ❑ Olympia, Washington 98504-0021 ❑ (360) 902-0370 ❑ TDD Relay (800) 833-6388 Packet Pg. 289 8.2.f Independent Auditor's Report On Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards....................................................................... 4 Independent Auditor's Report On Financial Statements................................................................ 7 FinancialSection........................................................................................................................... 10 About The State Auditor's Office................................................................................................. 36 c c M c as c O m C LL a 2 �L A d M LL V a 0 N r- O O C M C IL 0 LL a w c m E z c� a Washington State Auditor's Office Packet Pg. 290 8.2.f Edmonds Public Facilities District Snohomish County January 1, 2015 through December 31, 2015 Board of Directors Edmonds Public Facilities District Edmonds, Washington We have audited, 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, the financial statements of the Edmonds Public Facilities District, a component unit of the City of Edmonds, Snohomish County, Washington, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued our report thereon dated July 26, 2016. As discussed in Note 1 to the financial statements, during the year ended December 31, 2015, the District implemented Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27 and Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of GASB Statement No. 68. Our report includes information about the status of the District's financial condition. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements, we considered the District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. Washington State Auditor's Office Packet Pg. 291 8.2.f 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 District's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the District's financial statements are free from material misstatement, we performed tests of the District'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. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. However, Washington State Auditor's Office Packet Pg. 292 8.2.f 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. 7 X i0-1-� TROY KELLEY STATE AUDITOR OLYMPIA, WA July 26, 2016 Washington State Auditor's Office Packet Pg. 293 8.2.f Edmonds Public Facilities District Snohomish County January 1, 2015 through December 31, 2015 Board of Directors Edmonds Public Facilities District Edmonds, Washington REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of the Edmonds Public Facilities District, a component unit of the City of Edmonds, Snohomish County, Washington, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed on page 10. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control Washington State Auditor's Office Packet Pg. 294 8.2.f relevant to the District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Edmonds Public Facilities District, as of December 31, 2015, and the changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Matters of Emphasis As discussed in Note 1 to the financial statements, in 2015, the District adopted new accounting guidance, Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27 and Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of GASB Statement No. 68. Our opinion is not modified with respect to this matter. Matters of Emphasis Regarding Fiscal Sustainability As discussed in Notes 3 and 10 to the financial statements, the District has continued to experience operating losses at year end. The District has had to borrow from the City of Edmonds in order to make debt service payments on outstanding bonds. The contingent loan agreement between the District and the City of Edmonds obligates the City to lend money to the District for the purpose of paying debt service on the bonds. The District's cash flow constraints are expected to continue in the near future. As a result, there exists uncertainty about the District's ability to maintain services at present levels under these conditions. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Washington State Auditor's Office Packet Pg. 295 8.2.f Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 11 through 15 and pension plan information on page 35 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 our 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. OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated July 26, 2016 on our consideration of the District'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 an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance. 7j a /0-P, TROY KELLEY STATE AUDITOR OLYMPIA, WA July 26, 2016 Washington State Auditor's Office Packet Pg. 296 8.2.f Edmonds Public Facilities District Snohomish County January 1, 2015 through December 31, 2015 REQUIRED SUPPLEMENTARY INFORMATION Management's Discussion and Analysis — 2015 BASIC FINANCIAL STATEMENTS Statement of Net Position — 2015 Statement of Revenues, Expenses and Changes in Net Position 2015 Statement of Cash Flows — 2015 Notes to Financial Statements — 2015 REQUIRED SUPPLEMENTARY INFORMATION Pension Plan Information — 2015 Washington State Auditor's Office Packet Pg. 297 8.2.f MANAGEMENT'S DISCUSSION AND ANALYSIS Edmonds Public Facilities District (the District) presents this Management's Discussion and Analysis of its financial activities for the fiscal year ended December 31, 2015. The Management's Discussion and Analysis is designed to: • Assist the reader in focusing on significant financial issues. • Provide an overview of the District's financial activity. Identify changes in the District's financial position (its ability to meet future years' challenges) The Management's Discussion and Analysis focuses on the current year's activities, resulting changes and currently known facts. Therefore, it should be read in conjunction with the District's financial statements. OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements provide information about the District's overall financial position and results of operations. These statements, which are presented on the accrual basis, consist of Management's Discussion and Analysis (this section), the Statement of Net Position; the Statement of Revenues, Expenses and Changes in Net Position; Statement of Cash Flows; and the Notes to the Financial Statements. The District is a business -type activity, the purpose of which is to construct, maintain and operate a performing arts center within the boundaries of the City of Edmonds. Business -type activities provide specific goods or services to a group of customers that are paid for by fees charged to those customers. There is a direct relationship between the fees paid and the services rendered. The District is also supported by a legally separate entity, a 501(c)(3) not - for -profit corporation called Edmonds Center for the Arts (ECA), the purpose of which is to assist the District with community outreach, audience development and securing contributions from private sources to help support the operation of the District. ECA is included in the Financial Statements of the District as a blended component unit. FINANCIAL HIGHLIGHTS The District was required to implement GASB 68 (Accounting and Financial Reporting for Pensions) in 2015. This implementation required adjustments to the Statement of Net Position, seen as deferred inflows and outflows and pension liability; and to the Statement of Revenues, Expenses and Changes in Net Position as pension expense and a change in accounting standards. These are operating expenses that do not require substantial cash outlay in the foreseeable future. See Note 6 of the accompanying Notes to the Financial Statements for additional information. Washington State Auditor's Office Packet Pg. 298 8.2.f FINANCIAL STATEMENTS Statement of Net Position The Statement of Net Position presents information on all the District's assets and liabilities, with the difference between the two reported as net position. This statement is similar to the balance sheet of a private sector business. Over time, increases or decreases in net position may serve as useful indicators of improvement or deterioration in the District's overall financial position. Condensed Statement of Net Position 2015 2014 Current and other assets $ 670,271 $ 361,570 Capital assets(net) 12,380,868 12,953,142 Total assets 13, 051,139 13, 314, 712 Deferred outflows of resources related to pensions 83,321 Total assets and deferred outflows of resources $ 13,134,460 $ 13,314,712 Current and other liabilities $ 1,202,472 $ 923,558 Long-term liabilities 8,378,989 8,266,733 Total liabilities 9,581,461 9,190,291 Deferred inflows of resources related to pensions 75,961 Total liabilities and deferred inflows of resources $ 9,657,422 $ 9,190,291 Net Position Net investment in capital assets $ 3,999,677 $ 4,244,863 Restricted 492,134 488,616 Unrestricted (1,014,773) (609,060) Total net position $ 3,477,038 $ 4,124,420 Analysis of Net Position The total net position of the District (assets in excess of liabilities) at December 31, 2015 was $3,477,038. Excluding the adjustment required under GASB 68, there was a decrease of $190,745 or 5.2% compared to December 31, 2014. The largest component of the District's net position is its investment in capital assets, less debt related to the acquisition of those assets. These assets, such as buildings and equipment, are used to provide services to citizens. As a result, these assets are not for sale, and are therefore not available to fund current District obligations. $492,134 of the District's total net position is restricted for debt service payments. The remaining, unrestricted net position of the District may be used for functions of District operations such as employee salaries, advertising and supplies. Washington State Auditor's Office Packet Pg. 299 8.2.f Statement of Revenues, Expenses and Changes in Net Position The Statement of Revenues, Expenses and Changes in Net Position present increases (revenues and gains) and decreases (expenses and losses) in the District's net position during the current year. Condensed Statement of Revenues, Expenses and Changes in Net Position Revenues Operating revenues Non - operating revenues Total Revenues Expenses Operating Expenses Non - operating expense Total Expenses Change in net position Net position - beginning Pension changes in accounting standards Net position - end of period 2015 2014 $ 2,100,784 $ 1,979,737 648,256 492,290 $ 2,749,040 $ 2,472,027 $ 2,704,456 $ 2,558,515 235,327 241,382 $ 2,939,783 $ 2,799,897 (190,744) (327,870) 4,124,420 4,452,289 (456, 637) - $ 3,477,038 $ 4,124,420 Analysis of Revenue, Expenses and Changes in Net Position Revenues: The District's total revenues increased $277,013 or 11.2% over the prior year. Operating revenues increased $121,047 or 6.1 %. Although Ticket Sales and Fees decreased due to the cancellation of two high -profile shows; Concessions and Contributions increased substantially. Expenses: Total expenses for the District increased $139,886 or 5% over the prior period. Operating expenses increased 7.3%, due primarily to increases in Advertising and Marketing, as well as Payroll, Taxes and Benefits. The District invested in one new staff position to support Advertising and Marketing, and also invested more in promoting the organization and its services. Notes to the Financial Statements The Notes to the Financial Statements are integral to the financial statements. They immediately follow and provide additional disclosures essential to a full understanding of the statements. Washington State Auditor's Office Packet Pg. 300 8.2.f FINANCIAL CONDITION, RESULTS AND OUTLOOK Edmonds Public Facilities District, including its non -for -profit affiliate, Edmonds Center for the Arts (ECA), has continually improved its financial performance during its nine years of operation and expects to continue to improve its profitability in future years. However, as the District's operating results have remained strong its overall financial position has declined slightly due to significant and unexpected shortfalls in Intergovernmental Revenue as compared to original projections. The District's Intergovernmental Revenue, which exclusively funds its Bond Debt Service, comprises direct sales tax rebates from the State of Washington, contributions from Snohomish County Public Facilities District established by inter -local agreement, and a portion of net revenue generated by the operation of Edmonds Center for the Arts. The economic crisis that began in 2008 has resulted in average annual shortfalls of approximately $200,000 between projected sales tax revenues and actual receipts. In 2014 and 2015, the District's annual bond payments were met, in part, with loans from the City of Edmonds as prescribed in a Contingent Loan Agreement (CLA) between the two entities signed in 2008 (see Note 3 in the accompanying Notes to the Financial Statements). Under the terms of the CLA, the City of Edmonds is contractually obligated to advance to the District, as a loan, the amount of any shortfall in the District's Debt Service Fund each year. The City of Edmonds pledges its full faith and credit thereto. The City will continue to provide the same contingent financial support to the District for the life of the bonds. The District is making efforts to identify and secure new revenue streams to address annual shortfalls in sales tax revenues resulting from the economic crisis, both to pay back past loans, and to eliminate the need for future loans from the City. Some positive new indicators and developments include the following: At this time, the City of Edmonds and Snohomish County are experiencing gradual increases in sales tax revenue. If macro -economic conditions continue to improve, the sales tax revenues the District receives will also increase and will help close the gap between non -operating revenue and expense. The District received additional funds from Snohomish County Public Facilities District in 2015 (referred to as the "Tier 2" allocation) for just the second time since FY 2009. The District received $52,588 from this allocation, and it projects that this secondary allocation will increase in FY 2016 to as much as $66,000, further closing the gap between sales tax revenues and bond debt expense. In the most recent legislative session, The Washington State House of Representatives voted unanimously (96-0) to pass a Bill to extend the current legislation establishing and governing Public Facilities Districts, including the related sales tax rebates, for a period of 15 years beyond its current sunset date (2026). Subsequently, the Senate did not move the legislation forward and it was not signed into law. The recent success of this legislation in the House, however, suggests a positive outlook for the future. An extension of this funding source would provide the District a number of options for re- funding or refinancing its long-term debt. Washington State Auditor's Office Packet Pg. 301 8.2.f In May, 2013, the Boards of Edmonds Public Facilities District and Edmonds Center for the Arts adopted a comprehensive Strategic Business Plan, which includes strategies designed to ensure the long-term financial stability and sustainability of the District and the Center. The plan was updated during a retreat session held by the District Board on December 19, 2014, and again on December 12, 2015. One of the five key focal points of the Plan is "Funding and Finance," which focuses on securing new sources of revenue to help eliminate the District's annual capital shortfall, and prepare for capital asset replacement and improvements. The Center's Steering Committee has been assigned to implement this component of the plan. A copy of the District's Strategic Business Plan may be obtained by contacting the District's Executive Director. REQUESTS FOR INFORMATION The following Financial Statements are designed to provide users with a general overview of the District's financial performance as well as to demonstrate accountability to its citizens, investors, creditors, and other customers. If you have a question about this report, please contact Edmonds Public Facilities District, 410 Fourth Avenue North, Edmonds, Washington, WA 98020, (425) 275-4485. Washington State Auditor's Office Packet Pg. 302 8.2.f Edmonds Public Facilities District Statement of Net Position ASSETS: As of December 31, 2015 Current Assets: Cash and Cash Equivalents - Unrestricted Cash and Cash Equivalents - Restricted Customer Accounts Receivable Pledges Receivable Due from Other Governments Inventory Prepayments Total Current Assets Noncurrent Assets: Land Construction in Progress Buildings, Equipment, Furniture and Other Depreciable Assets Accumulated Depreciation Total Noncurrent Assets Total Assets: Deferred Outflows of Resources Related to Pensions Combined Assets and Deferred Outflows of Resources LIABILITIES: Current Liabilities: Accounts Payable Wages and Benefits Payable Unearned Ticket Sales and Other Unearned Revenue Liabilities for Customer Deposits Accrued Interest Note Payable Current Portion of Long -Term Liabilities Total Current Liabilities Noncurrent Liabilities: Bond Payable Contractual Obligation to the City of Edmonds Loan Payable to the City of Edmonds Net Pension Payable Liability for Compensated Absences Total Noncurrent Liabilities Total Liabilities: Deferred Inflows of Resources Related to Pensions Combined Liabilities and Deferred Inflows of Resources NET POSITION: Net Investment in Capital Assets Restricted for Debt Service Unrestricted TOTAL NET POSITION TOTAL LIABILITIES AND NET POSITION The notes to the financial statements are an integral part of this statement. Differences due to rounding. $ 155,945 50,478 281,669 67,566 64,971 3,469 46,173 $ 670,272 $ 3,444,885 25,111 14, 336,154 (5,425,283) $ 12, 380, 868 $ 13,051,139 83,321 $ 13,134,460 $ 229,506 45,981 375,486 19,745 19,254 17,500 495,000 $ 1,202,472 $ 2,880,000 3,945,000 1,043,691 492,578 17,721 $ 8,378,989 $ 9,581,461 75,961 $ 9,657,422 $ 3,999,677 492,134 (1,014,773) $ 3,477,038 $ 13,134,460 a Washington State Auditor's Office Packet Pg. 303 8.2.f Edmonds Public Facilities District Statement of Revenues, Expenses and Changes in Net Position For the Year Ended December 31, 2015 Operating Revenues: Ticket Sales and Fees Rentals Education and Outreach Concessions Contributions Received Total Operating Revenue Operating Expenses: Artist Presentations and Theatre Advertising and Marketing Education and Outreach Development Payroll, Taxes and Employee Benefits Pension expense under GASB 68 Facilities Maintenance and Utlities Contracted Services Supplies and Other Operating Expenses Depreciation Total Operating Expenses Operating Income (Loss) Non -operating Revenue and (Expenses): Intergovernmental Revenue Interest Expense Interest Earned Other Income Loss/Gain on Stock Realized Loss/Gain on Fixed Assets Non -Operating Income (Loss) TOTAL NET INCOME (LOSS) BEGINNING NET POSITION Pension Changes in Accounting Standards END OF YEAR NET POSITION The notes to the financial statements are an integral part of this statement. Differences due to rounding. $ 603,443 451,131 40,184 109,689 896,337 $ 2,100, 784 $ 451,662 190,087 81,926 69,585 870,496 54,764 167,922 6,386 233,013 578,615 $ 2,704,456 $ (603,672) $ 561,636 (235, 327) 173 92,288 (341) (5,500) $ 412,929 (190,744) $ 4,124,420 (456,637) $ 3,477,038 Washington State Auditor's Office Packet Pg. 304 8.2.f Edmonds Public Facilities District Statement of Cash Flows For the Year Ended December 31, 2015 Cash Flows from Operating Activities: Ticket sales 666,471 Rental receipts 216,408 Concession sales 110,537 Contributions received 869,962 Payments to artists (512,683) Payments to suppliers (208,328) Payments to employees (799,006) Other outside payments (266,058) Net cash provided (used) by operating activities $ 77,303 Cash Flows from Noncapital Financing Activities: Net cash borrowed from the City of Edmonds $ 126,417 Net cash flows from noncapital financing activities $ 126,417 Cash Flows from Capital and Related Financing Activities Receipt of sales taxes & other intergovernmental payments 555,294 Principal paid on long-term debt 2008 bonds payable (185,000) Contractual obligation to the City of Edmonds (265,000) Interest paid on long-term debt (234,855) Principal and interest paid on other debt (5,152) Purchase of capital assets (11,841) Net cash flows from noncapital financing activities $ (146,554) Cash Flows from Investing Activities: Interest received on investments 172 Loss on sale of investment (341) Net cash provided by investing activities $ (169) Total adjustments $ 56,997 Beginning Cash $ 149,427 Ending Cash $ 206,424 Reconciliation of Operating Loss to Net Cash Providedby Operating Activities Operating loss $ (603,672) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 578,615 Changes in assets and liabilities: Accounts receivables (174,830) Inventory 848 Prepayments 20,905 Pension outflows under adoption of GASB 68 (83,321) Accounts payable 192,607 Salaries & Benefits Payable (1,222) Compensated absences 6,607 Unearned revenues 22,844 Unearned customer deposits 6,020 Pension inflows under adoption of GASB 68 75,961 Pension liability 35,941 Net cash provided by operating activities $ 77,303 The notes to the financial statements are an integral part of this statement. Differences due to rounding. Washington State Auditor's Office Packet Pg. 305 8.2.f NOTES TO THE FINANCIAL STATEMENTS NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of Edmonds Public Facilities District (referred to hereafter as the "District"), 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 District's financial statements are comprised of the accounts of the District per se, a government body, and its private -sector not -for -profit affiliate, Edmonds Center for the Arts (ECA). The District's significant accounting policies are described below. ECA follows accounting standards promulgated by the Financial Accounting Standards Board. It applies those standards by utilizing guidance contained in the American Institute of Certified Public Accountants Audit and Accounting Guide, "Not -for Profit Entities." Financial statements for ECA alone are included in its Form 990, filed annually with the Internal Revenue Service. Copies of Forms 990 filed by ECA for the three most recent years may be downloaded without charge from the website of Guidestar, Inc. (http://www.guidestar.org/l. A. Reporting Entity The District is a municipal corporation in the State of Washington. It was created in 2001 by City of Edmonds Ordinance No. 3358 pursuant to Chapter 35.57 of the Revised Code of Washington to "design, construct, operate, and maintain an undesignated public facility." It is a discreet component unit of the City of Edmonds. Its governing board is appointed by the City Council of Edmonds and comprises five members who serve staggered four-year terms, with one term renewal permitted. ECA is a not -for -profit corporation organized and operated in conformity with Section 501(c) (3) of the Internal Revenue Code. ECA's activities are limited to providing support for the District and its performing arts center. ECA conducts various activities to raise funds, primarily from private -sector sources, including individuals, corporations and other businesses, and foundations. Its eighteen -member Board of Directors is appointed by the Board of the District for three-year terms renewable two times. ECA Board members provide advice and counsel to the entity as a whole. B. Basis of Accounting The District uses the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when incurred. The District's operating expenses include all costs associated with its presenting, rental and concessions businesses, as well as the costs associated with administration and fund raising Financial costs, principally interest expense, are recorded as non -operating expenses. The District receives and records operating revenue from the sources described below. It records sales tax rebate receipts, intergovernmental revenues, as well as interest and other investment revenues as non -operating revenues. (1) Ticket Sales to ECA Presentations are recorded as a liability, "Unearned Revenue," until the date of the performance. Ticket revenue is therefore recognized as earned on the date of each performance. Tickets returned by patrons prior to performances are reclassified as contribution Washington State Auditor's Office Packet Pg. 306 8.2.f revenue at amounts equal to the original ticket sale price. (2) Rental Revenue is derived from rentals of the auditorium, as well as other spaces in the facility. Rentals received in advance are recorded as "Unearned Revenue," a current liability on the Statement of Net Position. Unpaid rents are recorded as accounts receivable. (3) Sales Tax Revenue and Intergovernmental Revenue are recorded as non -operating revenues on the Statement of Revenues, Expenses and Changes in Net Position. District sales tax revenue represents a rebate of a portion of State of Washington sales taxes assessed and collected within the District. Intergovernmental revenue consists of the proceeds of an Inter -local Agreement between the City of Edmonds, Edmonds Public Facilities District, Snohomish County, and the Snohomish County Public Facilities District. That agreement provides for rebates of sales taxes assessed and collected elsewhere in Snohomish County to public facilities districts in the county, including the District. Under the agreements which generate these revenues, they must be used first to pay the annual principal and interest on the District's long-term debt. The debt that must be so serviced comprises the District's 2008 Sales Tax Obligation and Refunding Bonds (see Note 3) and also the 2012 Contractual Obligation to the City of Edmonds (see Note 3). In any fiscal year in which the Sales Tax and Intergovernmental Revenues exceed the amounts required to service those two liabilities, the excess may be used by the District for operations, capital expenditures, or other debt reduction. The Sales Tax and Intergovernmental Revenues are recorded as revenue during the fiscal period in which they are assessed. Revenues earned but not yet received are recorded in the Statement of Net Position in the current asset line titled "Due from Other Governments." (4) Contributions are the principal revenue source for Edmonds Center for the Arts. They are received in three different forms: cash donations, donation of financial instruments, and donated performance tickets .Contributions are recorded as revenue when they are in the form of voluntary unconditional promises to give. ECA records donations as revenue on the date of receipt. ECA's policy is to sell donated financial instruments immediately thereafter. Donated tickets are placed back into inventory for sale to the public. C. Cash and Cash Equivalents In the statement of Net Position, Cash and Equivalents includes cash in the bank and short-term investments with maturity dates of three months or less which includes the funds held in the State Treasurer's Investment Pool. D. Receivables Customer accounts receivable generally consist of amounts due from renters. At December 31, 2015 the receivable also included $101,232 from the Social Security Administration. See Note 5 for more information. Pledges receivable consist of amounts due on promised contributions. The amount due from other governments consists of sales tax from Snohomish County and contributions made from the City of Edmonds. Washington State Auditor's Office Packet Pg. 307 8.2.f E. Inventories Inventories consist primarily of goods held for sale as concessions. Inventories are valued at historic cost under the FIFO identification method. F. Changes in Accountinq Standards The Financial Statements of Edmonds Public Facilities 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) issued Statements No.68 and 71 Accounting and Financial Reporting for Pensions. The District has implemented the requirements as set forth. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the PERS and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For additional information, please refer to Note 6. G. Compensated Absences The District accrues compensated vacation time for eligible regular full-time employees. Employees who do not use their accrued vacation time during the current year can carry over one year's accrual only to the following year. Any accrued time not used beyond the one year will be forfeited. The one year's liability at December 31, 2015 was $17,721. NOTE 2 — CAPITAL ASSETS Capital assets include land, buildings, equipment and technology/software. The District capitalizes purchased and donated items having a useful life of more than one year and an acquisition value in excess of $5,000. Purchased assets are recorded at cost and donated assets are recorded at their fair value when placed in service. The District's major capital asset is its renovated auditorium and the un-renovated structure of which it forms a part. That building is being depreciated over a 25-year life using the straight-line method. Other depreciable capital assets are depreciated over their estimated useful lives using the straight-line method. Land and construction in progress are not depreciated. The schedule that follows shows beginning and ending balances, as well as the changes in capital assets and accumulated depreciation during the year ended December 31, 2015. Washington State Auditor's Office Packet Pg. 308 8.2.f Schedule of Capital Asset Activity Balance Balance 1/1/2015 Increases Decreases 12/31/2015 Capital assets, nondepreciable: Land $ 3,444,885 $ 3,444,885 Construction in Progress 13,270 11,841 25,111 Total capital assets, nondepreciable: $ 3,458,155 $ 11,841 $ - $ 3,469,996 Capital assets, depreciable: Building Furniture and Equipment Technology and Software Total capital assets depreciable Less accumulated depreciation for: Building Furniture and Equipment Technology and Software Total accumulated depreciation: Total net depreciable capital assets Total capital assets, net NOTE 3 — LONG-TERM DEBT $ 14,014,486 $ 14,014,486 292,890 292,890 39,778 11,000 28,778 $ 14,347,154 $ - $ 11,000 $ 14,336,154 $ (4,617,070) $ (560,580) $ (5,177,650) (217,412) (11,867) 1,965 (227,314) (17,685) (8,134) 5,500 (20,319) (4,852,167) (580,581) 7,465 (5,425,283) $ 9,494,987 $ (580,581) $ (3,535) $ 8,910,871 $ 12,953,142 $ (568,740) $ (3,535) $ 12,380,867 In 2008, Edmonds Public Facilities District issued Sales Tax Obligation and Refunding Bonds in the amount of $4,000,000. The bond proceeds were used to refund the District's outstanding balance on its 2005 General and Revenue Obligation Line of Credit ($3,883,804). The remaining proceeds were used to pay bond issuance costs and a portion was placed in reserve for future debt payments. The Bonds were issued pursuant to chapters 35.57 and 39.46 of the Revised Code of Washington and Resolution No. 27 adopted by the District's Board of Directors. When the Sales Tax Obligation and Refunding Bonds were issued, the District entered into a Contingent Loan Agreement (CLA) with the City of Edmonds (the City) providing credit support for the bonds. Washington State Auditor's Office Packet Pg. 309 8.2.f Sales Tax Obligation and Refunding Bonds currently outstanding as follows: Maturity Interest Balance Paid in Balance Issue Name Date Rates 12/31/2014 2015 12/31/2015 4.1 %- Sales Tax Obligation and Refunding Bonds 12/1/2025 4.5% $3,275,000 $185,000 $3,090,000 Following is a table which reflects debt service to maturity for the 2008 Bonds: Year Principal Interest Total 2016 210,000 132,970 342,970 2017 225,000 123,520 286,760 2018 250,000 114,295 307,148 2019 265,000 104,045 317,023 2020-2023 1,315,000 292,780 1,607,780 2024-2026 825.000 55,000 880,000 $3,090,000 $822,610 $3,912,610 In 2002 Edmonds Public Facilities District became obligated under an inter -local agreement with the City of Edmonds to apply its receipts of sales tax revenues to the City over the life of the City's Limited General Obligation Bonds issued in 2002. A major portion of the proceeds of that bond issue was used for the acquisition, renovation and initial operation of a Performing Arts Center by the District. On October 12, 2012, the City of Edmonds refunded the 2002 Limited Tax General Obligation Refunding Bonds with a face amount of $5,650,000. The 2012 refunding bonds are in total a liability of the City of Edmonds and are not reported as liability of the District. However, the District remains contractually obligated to the City of Edmonds to continue to apply its sales tax receipts to the City under the Inter -local agreement as per the schedule below. The liability to the City has been appropriately recorded on the District's Statement of Net Position as "Contractual Obligation to the City of Edmonds." The amount of the District's obligation to the City at the date of refunding was $4,965,000 with interest rates ranging from 1.75% to 3.0%, depending on the maturity of each principal installment. The bonds are scheduled to be retired in annual amounts beginning in 2013 and continuing through 2026. District Contractual Obligation to the City of Edmonds currently outstanding as follows: Maturity Interest Balance Paid in Balance Issue Name Date Rates 12/31/2014 2015 12/31/2015 Contractual Obligation to the City of 1.75%- Edmonds 12/1/2026 3% $4,495,000 $265,000 $4,230,000 Washington State Auditor's Office Packet Pg. 310 8.2.f Following is a table which reflects debt service to maturity for the Contractual Obligation to the City of Edmonds: Year Principal Interest Total 2016 285,000 85,992 370,992 2017 305,000 80,293 385,293 2018 330,000 74,192 404,192 2019 350,000 67,593 417,593 2020-2023 1,660,000 187,270 1,847,270 2024-2026 1,300,000 46,620 1,346,620 $4,230,000 $541,960 $4,771,960 The CLA states that the City pledges its "full faith, credit and resources" in an "absolute and unconditional" obligation to lend money to the District for the purpose of paying debt service on the bonds. The total amount borrowed in 2015 was $125,000. This is a reduction of borrowing from 2014 of $55,000. The total principal and interest due on the CLA at December 31, 2015 is $1,043,691. The rate charged by the City is the Local Government Investment Pool monthly rate. The District has made no payments on this loan. The maturity date of this guarantee is when the bonds are paid in full, which is 12/01/2026. The District will repay the below loan starting 01/31/2027, using the sales tax revenue received. NOTE 4 — CHANGES IN LONG-TERM LIABILITIES During the year ended December 31, 2015, the following changes occurred in long-term liabilities: Issue Name Balance 1/1/2015 Balance Additions Payments 12/31/2015 Due Within One Year 2008 Refunding Bonds 3,275,000 185,000 3,090,000 210,000 Contractual Obligation to CoE 4,495,000 265,000 4,230,000 285,000 CLA - City of Edmonds 917,273 126,417 1,043,690 Net Pension Liability 492,578 492,578 Compensated Absences 11,114 6,607 17,721 Total Long -Term Liabilities $9,190,965 $133,024 $$450,000 $8,873,989 $495,000 NOTE 5 — OTHER INCOME On December 24, 2015 District employees who are also PERS members (covered by a pension plan described in Note 7) voted to opt out of voluntary inclusion in the Social Security system. As of that date the District was eligible and authorized to amend Forms 941 for the years 2012-2015 to exclude those wages from the SS calculation, and therefore claim refunds of the taxes paid in those years. Washington State Auditor's Office Packet Pg. 311 8.2.f The District's claims for tax refunds for the years 2012-2014, including any penalties and/or interest recalculated, total $92,288. This was reported as "other income" so as not to distort ordinary operating income and expenses. The 2015 refunds of $35,113 were recorded against 2015 payments. The District was authorized to claim refunds on behalf of former and current employees affected by the vote. The employees' refunds are included in the financial statements as a receivable and a payable in the amounts of $101,232. NOTE 6 — PENSION PLAN The following table represents the aggregate pension amounts for all plans subject to the requirements of the GASB Statement 68, Accounting and Financial Reporting for Pensions for the year 2015: Pension Liability $492,578 Pension Assets - Deferred Outflows of Resources $83,321 Deferred Inflows of Resources $75,961 Pension Expense $88,077 State Sponsored Pension Plans Substantially all Edmonds Public Facility District's full-time and qualifying part-time employees participate in the Public Employees' Retirement System (PERS) administered by the Washington State Department of Retirement Systems (DRS), under cost -sharing, multiple - employer public employee defined benefit and defined contribution retirement plans. The state Legislature establishes, and amends, laws pertaining to the creation and administration of all public retirement systems. 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 98540-8380 Or the DRS CAFR may be downloaded from the DRS website at www.drs.wa.gov. Washington State Auditor's Office Packet Pg. 312 8.2.f Public Employees' Retirement System (PERS) PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior Courts; employees of the legislature; employees of district and municipal courts; employees of local governments; and higher education employees not participating in higher education retirement programs. PERS is comprised of three separate pension plans for membership purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined benefit plan with a defined contribution component. PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the member's average final compensation (AFC) times the member's years of service. The AFC is the average of the member's 24 highest consecutive service months. Members are eligible for retirement from active status at any age with at least 30 years of service, at age 55 with at least 25 years of service, or at age 60 with at least five years of service. Members retiring from active status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non -duty disability payments, an optional cost -of -living adjustment (COLA), and a one-time duty -related death benefit, if found eligible by the Department of Labor and Industries. PERS 1 members were vested after the completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977. Contributions The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer contribution rate is developed by the Office of the State Actuary and includes an administrative expense component that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates. The PERS Plan 1 required contribution rates (expressed as percentage of covered payroll) for 2015 were as follows: Actual Contribution Rates: Employer Employee January through June 2015 9.21 % 6.00% July through December 2015 11.18% 6.0% PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the member's average final compensation (AFC) times the member's years of service for Plan 2 and 1 percent of AFC for Plan 3. The AFC is the average of the member's 60 highest -paid consecutive service months. There is no cap on years of service credit. Members are eligible for retirement with a full benefit at 65 with at least five years of service credit. Retirement before age 65 is considered an early retirement. PERS Plan 2/3 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 benefit that is reduced by a factor that varies according to age for each year before age 65. PERS Plan 2/3 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 three percent for each year before age 65; or • With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return to -work rules. Washington State Auditor's Office Packet Pg. 313 8.2.f PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of five percent for each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30 years of service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other PERS Plan 2/3 benefits include duty and non -duty disability payments, a cost -of - living allowance (based on the CPI), capped at three percent annually and a one-time duty related death benefit, if found eligible by the Department of Labor and Industries. PERS 2 members are vested after completing five years of eligible service. 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 12 months of that service are earned after age 44. PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings on those contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a chance to change rates upon changing employers. As established by statute, Plan 3 required defined contribution rates are set at a minimum of 5 percent and escalate to 15 percent with a choice of six options. Employers do not contribute to the defined contribution benefits. PERS Plan 3 members are immediately vested in the defined contribution portion of their plan. Contributions The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to address the PERS Plan 1 UAAL and an administrative expense that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates and Plan 3 contribution rates. The PERS Plan 2/3 required contribution rates (expressed as a percentage of covered payroll) for 2015 were as follows: Dates Employee Contribution Employer Contribution January through June 2015 4.92% 9.21 % July through December 2015 6.12% 11.18% The District's actual contributions to the plan were $59,496 for the year ended December 31, 2015. Pension Plan Fiduciary Net Position Detailed information about the State's pension plans' fiduciary net position is available in the separately issued DRS financial report. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2015, the District reported a total pension liability of $492,578 for its proportionate share of the net pension liabilities as follows: Liability PERS 1 $261,651 PERS 2/3 $230,927 Total $492,578 Washington State Auditor's Office Packet Pg. 314 8.2.f At June 30, the District's proportionate share of the collective net pension liabilities was as follows: Proportionate Share 6/30/14 Proportionate Share 6/30/15 Change in Proportionate Share PERS 1 .004374% .005002% .000628% PERS 2/3 .005631 % .006463% .000832% Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the basis for determining each employer's proportionate share of the collective pension amounts reported by the DRS in the Schedules of Employer and NonemployerAllocations for all plans except LEOFF 1, in which the District does not participate. The collective net pension liability (asset) was measured as of June 30, 2015, and the actuarial valuation date on which the total pension liability (asset) is based was as of June 30, 2014, with update procedures used to roll forward the total pension liability to the measurement date. Pension Expense For the year ended December 31, 2015, the District recognized pension expense of $88,077 as follows: PERS 1 $52,678 PERS 2/3 $35,399 TOTAL $88,077 Deferred Outflows of Resources and Deferred Inflows of Resources At December 31, 2015, the District reported deferred outflows of resources of $83,321 and deferred inflows of resources of ($75,961) related to pensions from the following sources: PERS 1 Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual experience Changes of assumptions Net difference between projected and actual $14,315 earnings on pension plan investments Changes in proportion and differences between contributions and proportionate share of contributions Contributions subsequent to the measurement $14,034 date Total $14,034 $14,315 PERS 2/3 Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual $24,548 experience Changes of assumptions $ 372 Net difference between projected and actual $61,646 earnings on pension plan investments Changes in proportion and differences between $26,771 contributions and proportionate share of contributions Contributions subsequent to the measurement $17,596 date Total $69,287 $61,646 Washington State Auditor's Office Packet Pg. 315 8.2.f Deferred outflows of resources related to pensions resulting from the District's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended December 31: PERS 2/3 2015 $7,874 2016 $7,874 2017 $7,874 2018 $7,874 2019 $3,150 Actuarial Assumptions The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation completed in 2015 with a valuation date of June 30, 2014. The actuarial assumptions used in the valuation were based on the results of the Office of the State Actuary's (OSA) 2007-2012 Experience Study. Additional assumptions for subsequent events and law changes are current as of the 2014 actuarial valuation report. The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2015. Plan liabilities were rolled forward from June 30, 2014, to June 30, 2015, reflecting each plan's normal cost (using the entry -age cost method), assumed interest and actual benefit payments. • Inflation: 3% total economic inflation; 3.75% salary inflation • Salary increases: In addition to the base 3.75% salary inflation assumption, salaries are also expected to grow by promotions and longevity. • Investment rate of return: 7.5% Mortality rates were based on the RP-2000 report's Combined Healthy Table and Combined Disabled Table, published by the Society of Actuaries. The OSA applied offsets to the base table and recognized future improvements in mortality by projecting the mortality rates using 100 percent Scale BB. Mortality rates are applied on a generational basis; meaning, each member is assumed to receive additional mortality improvements in each future year throughout his or her lifetime. There were minor changes in methods and assumptions since the last valuation. • The OSA updated demographic assumptions, consistent with the changes from the 2007-2012 Experience Study Report, used when valuing the PERS 1 and TERS 1 Basic Minimum COLA. • The OSA corrected how valuation software calculates a member's entry age under the entry age normal actuarial cost method. Previously, the funding age was rounded, resulting in an entry age one year higher in some cases. Washington State Auditor's Office Packet Pg. 316 8.2.f • For purposes of calculating the Plan 2/3 Entry Age Normal Cost contribution rates, the OSA now uses the current blend of Plan 2 and Plan 3 salaries rather than using a long- term membership assumption of two-thirds Plan 2 members and one-third Plan 3 members • The OSA changed the way it applies salary limits, as described in the 2007-2012 Experience Study Report. Long -Term Expected Rate of Return The long-term expected rate of return on the DRS pension plan investments of 7.5 percent was determined using a building -block -method. The Washington State Investment Board (WSIB) used a best estimate of expected future rates of return (expected returns, net of pension plan investment expense, including inflation) to develop each major asset class. Those expected returns make up one component of WSIB's capital market assumptions. The WSIB uses the capital market assumptions and their target asset allocation to simulate future investment returns at various future times. The long-term expected rate of return of 7.5 percent approximately equals the median of the simulated investment returns over a 50-year time horizon. Estimated Rates of Return by Asset Class Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of June 30, 2015, are summarized in the table below. The inflation component used to create the table is 2.20 percent and represents the WSIB's most recent long-term estimate of broad economic inflation. Asset Class Target Allocation % Long -Term Expected Real Rate of Return Arithmetic Fixed Income 20.00% 1.70% Tangible Assets 5.00% 4.40% Real Estate 15.00% 5.80% Global Equity 37.00% 6.60% Private Equity 23.00% 9.60% 100.00% Discount Rate The discount rate used to measure the total pension liability for all DRS plans was 7.5 percent. To determine that rate, an asset sufficiency test included an assumed 7.7 percent long-term discount rate to determine funding liabilities for calculating future contribution rate requirements. (All plans use 7.7 percent except LEOFF 2, which has assumed 7.5 percent; the District has no employees in this plan). Consistent with the long-term expected rate of return, a 7.5 percent future investment rate of return on invested assets was assumed for the test. Contributions from plan members and employers are assumed to continue being made at contractually required rates (including PERS 2/3, PSERS 2, SERS 2/3, and TRS 2/3 employers, whose rates include a component for the PERS 1 and TRS 1 plan liabilities). Washington State Auditor's Office Packet Pg. 317 8.2.f Based on these assumptions, the pension plans' fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return of 7.5 percent was used to determine the total liability. Sensitivity Analysis The table below presents the District's proportionate share of the net pension liability, calculated using the discount rate of 7.5 percent, as well as what the District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.5 percent) or 1 percentage point higher (8.5 percent) than the current rate. 1% Decrease Current Discount Rate 1% Increase 6.50% 7.50% 8.50% PERS 1 6,368,671,000 5,230,930,000 4,252,577,000 0.005002% 318,561 261,651 212,714 PERS 2/3 10,447,804,000 3,573,057,000 (1,690,679,000) 0.006463% 675,242 230,927 (109,269) NOTE 7 — LONG-TERM RENTAL AGREEMENT In 2006, The District entered a long-term rental agreement with a customer for the use of some of its facilities on designated future dates. The initial term of the agreement was ten years, which expired on October 31, 2013, with the tenant having options to renew for three successive five-year terms. The tenant exercised its option and the agreement now extends through December 31, 2018, with options for two additional five-year terms. The rent is received in monthly payments by the District and totaled $76,895 in 2015, which is included in "Rental Revenues" on the District's Statement of Revenues, Expenses and Changes in Net Position. The rent will increase by 3% per annum in each future year, including renewals. Rents for the years 2016-2018 will be: Year 2016 $ 79,201 Year 2017 $ 81,574 Year 2018 $ 84,021 Washington State Auditor's Office Packet Pg. 318 8.2.f NOTE 8 — DEPOSIT DISCLOSURE Credit Risk. The District complies with state law which requires all investments of the District's funds be obligations of the U.S. Government, U.S. agency issues, Obligations of the State of Washington, repurchase agreements, prime banker's acceptances, the Washington State Local Government Investment Pool, and time certificates of deposit with authorized Washington State banks. Custodial Credit Risk - Deposits. All District and ECA deposits are insured by Federal Depository Insurance Corporation (FDIC) coverage limits. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for coverage over $250,000 if they have funds in different ownership categories and all FDIC requirements are met. All deposits that an accountholder has in the same ownership category at the same bank are added together and insured up to the standard insurance amount. 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 PFD's position in the pool is the same as the value of the shares. NOTE 9 — RISK MANAGEMENT Property/Casualty Risk: Edmonds Public Facilities District is a member of Enduris. Chapter 48.62 RCW provides the exclusive source of local government entity authority to individually or jointly self -insure risks, jointly purchase insurance or reinsurance, and to contract for risk management, claims, and administrative services. Enduris was formed July 10, 1987 pursuant to the provisions of Chapter 48.62 RCW, Chapter 200-100 WAC, and Chapter 39.34 RCW. Two (2) counties and two (2) cities in the State of Washington joined together by signing an interlocal governmental agreement to fund their self -insured losses and jointly purchase insurance and administrative services. As of August 31, 2015, there are 507 Enduris members representing a broad array of special purpose districts throughout the state. Enduris provides property and liability coverage as well as risk management services and other related administrative services. Washington State Auditor's Office Packet Pg. 319 8.2.f Members make an annual contribution to fund Enduris and share in the self -insured retention of the jointly purchased excess and/or reinsurance coverage. The self -insured retention is: • $1,000,000 deductible on liability loss - the member is responsible for the first $1,000 of the deductible amount of each claim, while Enduris is responsible for the remaining $999,000 on a liability loss. • $250,000 deductible on property loss - the member is responsible for the first $1,000 of the deductible amount of each claim, while Enduris is responsible for the remaining $249,000 on a property loss. Enduris is responsible for the $4,000 deductible on boiler and machinery loss. Enduris acquires reinsurance from unrelated insurance companies on a "per occurrence" basis to cover all losses over the deductibles as shown on the policy maximum limits. Liability coverage is for all lines of liability coverage including Public Official's Liability. The Property coverage is written on an "all risk", blanket basis using current Statement of Values. The Property coverage includes but is not limited to mobile equipment, boiler and machinery, electronic data processing equipment, business interruption, course of construction and additions, property in transit, fine arts, and automobile physical damage to insured vehicles. Liability coverage limit is $10 million per occurrence and property coverage limit is $1 billion per occurrence. Enduris offers crime coverage up to a limit of $1 million per occurrence. Since Enduris is a cooperative program, there is a joint liability among the participating members. The contract requires members to continue membership for a period of not less than one (1) year and must give notice 60 days before terminating participation. The Master Agreement (intergovernmental Contract) is automatically renewed after the initial one (1) full fiscal year commitment. Even after termination, a member is still responsible for contribution to Enduris for any unresolved, unreported and in -process claims for the period they were a signatory to the Master Agreement. Enduris is fully funded by its member participants. Claims are filed by members with Enduris and are administered in house. A Board of Directors consisting of seven (7) board members governs Enduris. Its members elect the Board and the positions are filled on a rotating basis. The Board meets quarterly and is responsible for conducting the business affairs of Enduris. The District believes its various property and casualty risks are covered appropriately by its Enduris membership. The District filed one claim during 2014, in the amount $6,833 for gym roof repairs, due to a storm. The amount of settlements did not exceed insurance coverage in each of the past three years. Washington State Auditor's Office Packet Pg. 320 8.2.f NOTE 10— FINANCIAL CONDITION The District's operating results improved again in 2015. Each fiscal year, the District's depreciation expense comprises 27.5% of the District's reported operating expenses. Without this depreciation expense, and without a $28,581 non -cash pension expense to reflect the implementation of the new GASB 68 Pronouncement, the District's operating surplus would total $3,524. Although the local economy has continued to improve, sales tax receipts remain below budgeted levels. Additionally, contributions from Snohomish County Public Facilities District are also below budgeted levels. These unexpectedly low receipts impact the District's Debt Service Fund that relies on these revenues to meet 100% of its annual debt service obligations. The District's Board holds the opinion that the financial condition of the District is stable and that strategies outlined in its Strategic Business Plan to address long-term capital and debt service requirements will be successful in generating new sources of revenue. NOTE 11 —SUBSEQUENT EVENTS The District recently acquired a Community Block Development Grant (CBDG) to partially cover the costs of removing barriers and updating a women's bathroom in the facility's "back -of - house" area to comply with the Americans with Disabilities Act. This project was completed in early June of 2016 and will provide an important and accessible amenity for renters and audiences alike. The District also received two major grants from the Snohomish County Lodging Tax Advisory Fund ($225,000) and from the State of Washington ($250,000), each for the purpose of repairing the roof over the facility's gymnasium and classroom spaces. The District will be pursuing bids for this project in July of 2016 and expect to complete this important project by October of 2016. Finally, as previously stated in Note 5 above, District employees who are also members of the Public Employees' Retirement System or PERS (covered by the pension plan described in Note 6) voted to opt out of voluntary inclusion in the Federal Social Security system. As of that date the District was eligible and authorized to amend Forms 941 for the years 2012-2015 to exclude those wages from the Social Security calculation, and therefore claim refunds of the taxes paid in those years. In May and June of 2016, the District has received refunds from the Social Security Administration for the value of contributions made by both the District, and each affected employee. The total refund to the District itself exceeded $100,000. The District's Board of Directors will be reviewing options for use of this unplanned rebate, which include placing the revenue in a restricted operating and/or capital reserve fund. The Board plans to make a final decision on or before its meeting in September, 2016. Washington State Auditor's Office Packet Pg. 321 8.2.f REQUIRED SUPPLEMENTARY INFORMATION Schedule of Proportionate Share of the Net Pension Liability Plan PERS 1 As of June 30, 2015 2015 Employer's proportion of the net pension liability asset .005002% Employer's proportionate share of the net pension liability $261,651 Employer's covered employee payroll 0 Employer's proportionate share of the net pension liability as a percentage of covered employee payroll 0 Plan fiduciary net position as a percentage of the total pension liability 59.1 % Schedule of Proportionate Share of the Net Pension Liability Plan PERS 2/3 As of June 30, 2015 2015 Employer's proportion of the net pension liability (asset) .006463% Employer's proportionate share of the net pension liability $230,927 Employer's covered employee payroll $555,975 Employer's proportionate share of the net pension liability as a percentage of covered employee payroll 41.5% Plan fiduciary net position as a percentage of the total pension liability 89.2% Schedule of Proportionate Share of Employer Contributions Plan PERS 1 As of December 31, 2015 2015 Contractually required contributions $26,654 Contributions in relation to the contractually required contributions $26,654 Contributions deficient excess Covered employer payroll 0 Contributions as a percentage of covered employee payroll 0% Schedule of Proportionate Share of Employer Contributions Plan PERS 2/3 As of December 31, 2015 2015 Contractually required contributions $34,212 Contributions in relation to the contractually required contributions $34,212 Contributions deficient excess Covered employer payroll $555,975 Contributions as a percentage of covered employee payroll 6.15% These schedules will be built prospectively until they contain ten years of data. There were no changes of benefit terms for the pension plans. There were no changes of assumptions for the pension plans. Washington State Auditor's Office Packet Pg. 322 8.2.f 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. We work with our audit clients and citizens to achieve our vision of government that works for citizens, by helping governments work better, cost less, deliver higher value, and earn greater public trust. In fulfilling our mission to hold state and local governments accountable for the use of public resources, we also hold ourselves accountable by continually improving our audit quality and operational efficiency and developing highly engaged and committed employees. 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. 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 as well as fraud, state whistleblower and citizen hotline investigations. The results of our work are widely distributed through a variety of reports, which are available on our website and through our free, electronic subscription service. We take our role as partners in accountability seriously, and provide training and technical assistance to governments, and have an extensive quality assurance program. Contact information for the State Auditor's Office Public Records requests PublicRecords&sao.wa.gov Main telephone (360) 902-0370 Toll -free Citizen Hotline (866) 902-3900 Website www.sao.wa.gov Washington State Auditor's Office Packet Pg. 323 8.2.g Edmonds Public Facilities District ANNUAL FINANCIAL REPORT For the Fiscal Year Ended December 31, 2016 Packet Pg. 324 8.2.g Contents MANAGEMENT'S DISCUSSION AND ANALYSIS................................................................................1 Statementof Net Position............................................................................................................................7 a c Statement of Revenues, Expenses and Changes in Net Position........................................................8 M c Statementof Cash Flows.............................................................................................................................9 4- c NOTES TO THE FINANCIAL STATEMENTS 10 ....................................................................................... m° 0 NOTE 1 -SIGNIFICANT ACCOUNTING POLICIES........................................................................................ 10 U_ a NOTE 2 - CAPITAL ASSETS......................................................................................................................... 12 r .2 L NOTE 3 LONG-TERM DEBT 13 p NOTE 4 CHANGES IN LONG-TERM LIABILITIES 15 ; NOTE 5 - OTHER INCOME......................................................................................................................... 15 U_ NOTE 6 - PENSION PLAN 16 ........................................................................................................................... Z NOTE 7 - LONG-TERM RENTAL AGREEMENT............................................................................................ 22 a J NOTE 8 - DEPOSIT DISCLOSURE................................................................................................................ 23 z z U_ NOTE 9 - RISK MANAGEMENT.................................................................................................................. 23 ' L O NOTE 10- FINANCIAL CONDITION............................................................................................................ 25 Q. a� NOTE 11-SUBSEQUENT EVENTS.............................................................................................................. 25 FU c REQUIRED SUPPLEMENTARY INFORMATION..........................................................................25 Q 0 N LL a d W r a Packet Pg. 325 8.2.g MANAGEMENT'S DISCUSSION AND ANALYSIS Edmonds Public Facilities District (the District) presents this Management's Discussion and Analysis of its financial activities for the fiscal year ended December 31, 2016. The Management's Discussion and Analysis is designed to: • Assist the reader in focusing on significant financial issues. • Provide an overview of the District's financial activity. Identify changes in the District's financial position (its ability to meet future years' challenges) The Management's Discussion and Analysis focuses on the current year's activities, resulting changes and currently known facts. Therefore, it should be read in conjunction with the District's financial statements. OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements provide information about the District's overall financial position and results of operations. These statements, which are presented on the accrual basis, consist of Management's Discussion and Analysis (this section), the Statement of Net Position; the Statement of Revenues, Expenses and Changes in Net Position; Statement of Cash Flows; and the Notes to the Financial Statements. The District is a business -type activity, the purpose of which is to construct, maintain and operate a performing arts center within the boundaries of the City of Edmonds. Business -type activities provide specific goods or services to a group of customers that are paid for by fees charged to those customers. There is a direct relationship between the fees paid and the services rendered. The District is also supported by a legally separate entity, a 501(c)(3) not -for -profit corporation called Edmonds Center for the Arts (ECA), the purpose of which is to assist the District with community outreach, audience development and securing contributions from private sources to help support the operation of the District. ECA's financial activities are included within the Financial Statements of the District as the non-profit is a blended component unit of the District. FINANCIAL HIGHLIGHTS In Fiscal Year 2015, The District (as with many public agencies across the country) was required to implement GASB Pronouncement #68 (Accounting and Financial Reporting for Pensions). The implementation of this new pronouncement required a change to the Statement of Net Position, which now includes line items called "Deferred Inflow of Resources" and "Deferred Outflow of Resources;" as well as a change to the Statement of Revenues, Expenses and Changes in Net Position which now includes a line item called "Pension Expense Under GASB 68." These are operating expenses that do not require substantial cash outlay in the foreseeable future. This change in accounting standards is permanent and affects The District's 2016 Financial Statements, as well as all future Financial Statements for The District. Please see Note 6 of the accompanying Notes to the Financial Statements for additional information regarding the purpose of these calculations and their impact on The District's financial position. Packet Pg. 326 8.2.g FINANCIAL STATEMENTS Statement of Net Position The Statement of Net Position presents information on all of the District's assets and liabilities, with the difference between the two reported as net position. This statement is similar to the balance sheet of a private sector business. Over time, increases or decreases in net position may serve as useful indicators of improvement or deterioration in the District's overall financial position. Condensed Statement of Net Position 2016 2015 Current and other assets $496,762 $670,271 Capital assets(net) 11,951,981 12,380,868 Total assets 12,448,743 13,051,139 Deferred outflows of resources related to pensions 144,004 $83,321 Total assets and deferred outflows of resources $12,592,747 $13,134,460 Current and other liabilities $1,177,756 $1,202,472 Long-term liabilities 8,105,779 8,378,989 Total liabilities 9,283,535 9,581,461 Deferred inflows of resources related to pensions 11,477 $75,961 Total liabilities and deferred inflows of resources $9,295,012 $9,657,422 Net Position Net investment in capital assets $3,953,601 $3,999,677 Restricted 148,925 492,134 Unrestricted (804,790) (1,014,773) Total net position $3,297,736 $3,477,038 Analysis of Net Position The total net position of the District (assets in excess of liabilities) at December 31, 2016 was $3,297,736. There was a decrease of $179,302 or 5.2% compared to December 31, 2015. The largest component of the District's net position is its investment in capital assets, less debt related to the acquisition of those assets. These assets, such as buildings and equipment, are used to provide services to citizens. As a result, these assets are not for sale, and are therefore not available to fund current District obligations. $148,925 of the District's total net position was restricted for debt service payments. This restricted portion decreased by $343,209, or 69.7% in 2016. Correspondingly, the District's unrestricted net position increased by $209,990. The remaining, unrestricted net position of the District may be used for functions of District operations such as employee salaries, programming, advertising and supplies. 2 Packet Pg. 327 8.2.g Statement of Revenues, Expenses and Changes in Net Position The Statement of Revenues, Expenses and Changes in Net Position present increases (revenues and gains) and decreases (expenses and losses) in the District's net position during the current year. Condensed Statement of Revenues, Expenses and Changes in Net Position 2016 Revenues Operating revenues Non - operating revenues Total Revenues Expenses Operating Expenses Non - operating expense Total Expenses Change in net position Net position - beginning Pension changes in accounting standards Net position - end of period Analysis of Revenue, Expenses and Changes in Net Position $2,304,180 729,051 $3,033,231 $2,991,434 221,100 2015 $2,100,784 648,256 $2, 749, 040 $2,704,456 235,327 $3,212,534 $2,939,783 (179,302) (190,743) 3,477,038 4,124,420 (456,638) $3,297,736 $3,477,038 Revenues: The District's total revenues increased $284,191 or 10.34% over the prior year. Operating revenues increased $203,396 or 9.7%. Expenses: Total expenses for the District increased $272,751 or 9.28% over the prior period. Operating expenses increased 10.6%, due primarily to increases in Payroll, Taxes and Benefits. Notes to the Financial Statements The Notes to the Financial Statements are integral to the financial statements. They immediately follow the Financial Statements in this report and they provide additional disclosures essential to a full understanding of the statements. 3 Packet Pg. 328 8.2.g FINANCIAL CONDITION, RESULTS AND OUTLOOK Edmonds Public Facilities District, including its non -for -profit affiliate, Edmonds Center for the Arts (ECA), has grown significantly in its first ten years of operation from a $500,000 operation to a $2.3 Million operation. Management expects this growth to continue and to accelerate in the coming decade as a result of expanding programs and services, a rapidly growing population in the Puget Sound region, and opportunities for future campus improvements and/or expansion. The District experienced an operating deficit in 2016, which marked only its second operating shortfall in the most recent six -year period. The District has identified the primary reasons for the 2016 operating deficit, and has taken corrective steps to ensure a balanced operating performance in 2017. While the District's operating results have generally been strong over the most recent six year period, its overall financial position has declined slightly due to significant and unexpected shortfalls in Intergovernmental Revenue as compared to original projections. The impact of this tax revenue shortfall is discussed in detail below (see "Non -Operating Performance"). Operating Performance FY 2016 was the second year since FY 2011 that the District suffered an operating loss before depreciation. There were two key factors that led to this unexpected operating shortfall. These items included: Payroll, Taxes and Employee Benefits: As the level of activity has increased for the District in the form of expanded presentations and education/outreach programs, as well as tremendous growth in the number and scope of rental events, the labor required to support such growth by necessity has also increased. The District added five part-time and one full-time position to its payroll in FY 2016. The rising cost of health and retirement benefits was also a significant factor. Server system replacement and recovery: As a result of a failure of the District's network server system in November of 2015, the District invested in and installed a new server and hired temporary labor to help rebuild the District's accounting system. In addition, the State Auditor's Office conducted additional review and testing of the District's information technology policies and systems to ensure security and compliance. These additional, one-time costs, which totaled approximately $18,000, were included in the District's FY 2016 operating expenses. The District has implemented new strategies to help improve its operating performance and improve its financial stability. The steps the District has taken include: Facility Condition Assessment — In April of 2017, McKinstry, Inc. completed a comprehensive Facility Condition Assessment for the District, and provided the District with a Preventative Maintenance and Capital Replacement Schedule. This plan includes a complete inventory of structural, mechanical, electrical and other equipment/systems. Further, it provides timelines and associated costs for maintaining and replacing each item or system, allowing the District to plan for short- and long-term capital needs. 4 Packet Pg. 329 8.2.g Historic Facility Preservation Fee — In November of 2016, the District approved as part of its FY 2017 Budget (and all future annual operating budgets), the collection of a new fee on each ticket sold through the Edmonds Center for the Arts box office. The revenue from this fee will be placed on reserve and restricted for facility maintenance and replacement projects as identified in the District's new Preventative Maintenance and Capital Replacement Schedule. Priorities for expending these funds will be set by the District's Facilities and Operations Committee, and will be recommended to and approved by the District's Board of Directors. In FY 2017, the District will collect and place on reserve all revenue collected through this fee structure. The budget for FY 2018 for facility maintenance and replacement projects will equal the amount of revenue collected in FY 2017. This budgeting and fund management practice will continue for all future fiscal years. As of June 2017, the District has collected approximately $20,000 as a result of the new Historic Facility Preservation Fee. In January 2017, the District contracted with a new Information Technology consultant. This new consultant immediately improved the District's network server configuration, has significantly upgraded network security and functionality, and has guaranteed the safe backup and storage of the organization's shared files and systems. The consultant has also developed a plan to migrate the District's email system and a selection of shared files to the cloud to further ensure stability, security and functionality. The District anticipates that this migration will be completed by September of 2017. Non -Operating Performance The District's Intergovernmental Revenue, which exclusively funds its Bond Debt Service, comprises direct sales tax rebates from the State of Washington, contributions from Snohomish County Public Facilities District established by inter -local agreement, and a portion of net revenue generated by the operation of Edmonds Center for the Arts. The economic crisis that began in 2008 has resulted in average annual shortfalls of approximately $125,000 between projected sales tax revenues and actual receipts. Between 2011 and 2016, the District's annual bond payment obligations have been met, in part, with loans from the City of Edmonds as prescribed in a Contingent Loan Agreement (CLA) between the two entities signed in 2008 (see Note 3 in the accompanying Notes to the Financial Statements). Under the terms of the CLA, the City of Edmonds is contractually obligated to advance to the District, as a loan, the amount of any shortfall in the District's Debt Service Fund each year. The City of Edmonds pledges its full faith and credit thereto. The City will continue to provide the same contingent financial support to the District for the life of the bonds, or until such assistance is no longer required. The District has been making strides to secure new revenue streams to address these annual shortfalls in sales tax revenues resulting from the economic crisis, both to pay back past loans, and to eliminate the need for future loans from the City of Edmonds. Some positive new developments include the following: • For the past three years, the City of Edmonds and Snohomish County have experienced significant increases in sales tax revenues. As macro -economic conditions continue to improve, the sales tax revenue the District receives has increased and has helped to close the gap between non -operating revenue and expense. The District received 5 Packet Pg. 330 8.2.g additional funds from Snohomish County Public Facilities District in 2016 (referred to as the "Tier 2" allocation) for just the third time since FY 2009. The District received $66,149 from this allocation, and this secondary allocation has increased in FY 2017 to $97,831, further closing the gap between sales tax revenues and bond debt expense. In the most recent legislative session, The Washington State Legislature passed House Bill 1201, and the Bill was subsequently signed into law by Governor Jay Inslee in April, 2017. This new law extends the current legislation establishing and governing Public Facilities Districts, including the related sales tax rebate, by a period of 15 years beyond its current sunset date (2026) to the year 2041. The extension of this funding source will provide the District with a number of options for re -funding or refinancing long-term debt for the purpose of capital maintenance, replacement or improvements. In FY 2018, The District's 2008 Bond Issue will become callable and will be eligible for re- funding. The District has secured Piper Jaffray Financial Services to provide analysis and advice regarding the potential re -funding options available to The District. With the extension of the sales tax revenue stream to 2041, and the continued economic growth in the Puget Sound region, management predicts that the need to borrow further funds from the City of Edmonds to help meet bond debt payments will be eliminated by the end of 2019. In May, 2013, the Boards of Edmonds Public Facilities District and Edmonds Center for the Arts adopted a comprehensive Strategic Business Plan, which includes strategies designed to ensure the long-term financial stability and sustainability of the District and the Center. The plan is currently in its sunset year. Beginning in June of 2017, the District and the Not -For -Profit Boards and staff will embark on a planning process to update the Strategic Business Plan for the next five-year period (2018 — 2022). REQUESTS FOR INFORMATION The following Financial Statements are designed to provide users with a general overview of the District's financial performance as well as to demonstrate accountability to its citizens, investors, creditors, and other customers. If you have a question about this report, please contact Edmonds Public Facilities District, 410 Fourth Avenue North, Edmonds, Washington, WA 98020, (425) 275- 4485. 0 Packet Pg. 331 8.2.g Edmonds Public Facilities District Statement of Net Position As of December 31, 2016 ASSETS: Current Assets: Cash and Cash Equivalents - Unrestricted $ 195,069 Cash and Cash Equivalents - Restricted 97,647 Customer Accounts Receivable 48,827 Pledges Receivable 31,887 Due from Other Governments 50,338 Inventory 3,523 Prepayments 69,472 Total Current Assets $ 496,762 Noncurrent Assets: Land $ 3,444,885 Buildings, Equipment, Furniture and Other Depreciable Assets 14,514,408 Accumulated Depreciation (6,007,311) Total Noncurrent Assets $ 11,951,981 Deferred Outflows of Resources 144,004 TOTAL ASSETS $ 12,592,747 LIABILITIES: Current Liabilities: Accounts Payable $ 180,803 Wages and Benefits Payable 51,655 Liability for Compensated Absences 17,386 Unearned Ticket Sales and Other Unearned Revenue 347,987 Liabilities for Customer Deposits 32,940 Accrued Interest 16,984 Current Portion of Long -Term Liabilities 530,000 Total Current Liabilities $ 1,177,756 Noncurrent Liabilities: Bond Payable 2,655,000 Contractual Obligation to the City of Edmonds 3,640,000 Loan Payable to the City of Edmonds 1,173,381 Net Pension Payable 637,398 Total Noncurrent Liabilities $ 8,105,779 Deferred Inflow of Resources 11,477 TOTAL LIABILITIES $ 9,295,011 NET POSITION: Net Investment in Capital Assets $ 3,953,601 Restricted 148,925 Unrestricted (804,790) TOTAL NET POSITION $ 3,297,736 TOTAL LIABILITIES AND NET POSITION $ 12,592,747 The notes to the financial statements are an integral part of this statement Differences due to rounding. 7 Q Packet Pg. 332 8.2.g Edmonds Public Facilities District Statement of Revenues, Expenses and Changes in Net Position For the Year Ended December 31, 2016 Operating Revenues Ticket Sales and Fees $ 661,443 Rentals 508,236 Education and Outreach 47,079 Concessions 112,674 Contributions 972,498 Advertising 2,250 Total Operating Revenue $ 2,304,180 Operating Expenses: Artist Presentations and Theatre $ 548,303 Advertising and Marketing 193,787 Education and Outreach 58,204 Development 87,982 Payroll, Taxes and Employee Benefits 1,045,502 Pension Expense under GASB 68 54,193 Facilities Maintenance and Utilties 151,308 Contracted Services 16,639 Supplies and Other Operating Expenses 253,488 Depreciation 582,028 Total Operating Expenses $ 2,991,434 Operating Income (Loss) $ (687,254) Non -operating Revenue and (Expenses): Intergovernmental Revenue $ 608,713 Grant Revenue 119,144 Interest Expense (221,100) Interest Earned 1,033 Other Income - Loss/Gain on Stock Realized 161 Loss/Gain on Fixed Assets - Non -Operating Income (Loss) $ 507,953 TOTAL NET INCOME (LOSS) $ (179,302) BEGINNING NET POSITION $ 3,477,038 END OF YEAR NET POSITION $ 3,297,736 The notes to the financial statements are an integral part of this statement. Differences due to rounding. W a� c U c m c 0 m LL d r C m r U 0 LL d J Q Z LL 0 Q- W c c Q co 0 N LL 0 a w c a� E t v c� Q Packet Pg. 333 8.2.g Edmonds Public Facilities District Statement of Cash Flows For the Year Ended December 31, 2016 Cash Flows from Operating Activities: Ticket Sales Rental Receipts Concession Sales Contributions Received Payments to Artists Payments to Suppliers Payments to Employees Other Outside Payments Net cash provided (used) by operating activities Cash Flows from Noncapital Financing Activities: Net cash borrowed from the City of Edmonds Net interfund transfers Net cash flows from noncapital financing activities Cash Flows from Capital and Related Financing Activities Receipt of sales taxes & other intergovernmental payments Receipt of grant revenue Principal paid on long-term debt 2008 bonds payable Contractual obligation to the City of Edmonds Interest paid on long-term debt Principal and interest paid on other debt Purchase of capital assets Net cash flows from noncapital financing activities Cash Flows from Investing Activities: Interest received on investments Loss on sale of investment Net cash provided by investing activities Total adjustments Beginning Cash Ending Cash Reconciliation of Operating Loss to Net Cash Providedby Operating Activities Operating Loss Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation Changes in assets and liabilities: Accounts Receivables Inventory Prepayments Account Payable Salaries & Benefits Payable Compensated Absences Unearned revenues Unearned customer deposits Pension Liability Net cash provided by operating activities 683,273 523,297 112,620 1,001,627 (629,806) (453,499) (843,722) (298,408) $ 95,382 $ 129,690 $ 129,690 629,896 119,144 (210,000) (285,000) (223,370) (17,500) (153,143) $ (139,973) 1,033 161 $ 1,194 $ 86,293 $ 206,423 $ 292,716 T he notes to the financial statements are an integral part of this statement. Differences due to rounding. 9 $ (687,254) 582,028 261,976 (54) (23,299) (48,703) 5,674 (335) (27,499) 13,195 19,653 $ 95,382 Packet Pg. 334 8.2.g NOTES TO THE FINANCIAL STATEMENTS NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of Edmonds Public Facilities District (referred to hereafter as the "District"), 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 District's financial statements are comprised of the accounts of the District per se, a government body, and its private -sector not -for -profit affiliate, Edmonds Center for the Arts (ECA). The District's significant accounting policies are described below. ECA follows accounting standards promulgated by the Financial Accounting Standards Board. It applies those standards by utilizing guidance contained in the American Institute of Certified Public Accountants Audit and Accounting Guide, "Not -for Profit Entities." Financial statements for ECA alone are included in its Form 990, filed annually with the Internal Revenue Service. Copies of Forms 990 filed by ECA for the three most recent years may be downloaded without charge from the website of Guidestar, Inc. (http://www.guidestar.org/). For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of all state sponsored pension plans and additions to/deductions from those plans' fiduciary net position have been determined on the same basis as they are reported by the Washington State Department of Retirement Systems. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. A. Reporting Entity The District is a municipal corporation in the State of Washington. It was created in 2001 by City of Edmonds Ordinance No. 3358 pursuant to Chapter 35.57 of the Revised Code of Washington to "design, construct, operate, and maintain an undesignated public facility." It is a discreet component unit of the City of Edmonds. Its governing board is appointed by the City Council of Edmonds and comprises five members who serve staggered four-year terms, with one term renewal permitted. ECA is a not -for -profit corporation organized and operated in conformity with Section 501(c) (3) of the Internal Revenue Code. ECA's activities are limited to providing support for the District and its performing arts center. ECA conducts various activities to raise funds, primarily from private - sector sources, including individuals, corporations and other businesses, and foundations. Its eighteen -member Board of Directors is appointed by the Board of the District for three-year terms renewable two times. ECA Board members provide advice and counsel to the entity as a whole. B. Basis of Accounting The District uses the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when incurred. The District's operating expenses include all costs associated with its presenting, rental and 10 Packet Pg. 335 8.2.g concessions businesses, as well as the costs associated with administration and fund raising. Financial costs, principally interest expense, are recorded as non -operating expenses. The District receives and records operating revenue from the sources described below. It records sales tax rebate receipts, intergovernmental revenues, as well as interest and other investment revenues as non -operating revenues. (1) Ticket Sales to ECA Presentations are recorded as a liability, "Unearned Revenue," until the date of the performance. Ticket revenue is therefore recognized as earned on the date of each performance. Tickets returned by patrons prior to performances are reclassified as contribution revenue at amounts equal to the original ticket sale price. (2) Rental Revenue is derived from rentals of the auditorium, as well as other spaces in the facility. Rentals received in advance are recorded as "Unearned Revenue," a current liability on the Statement of Net Position. Unpaid rents are recorded as accounts receivable. (3) Sales Tax Revenue and Intergovernmental Revenue are recorded as non -operating revenues on the Statement of Revenues, Expenses and Changes in Net Position. District sales tax revenue represents a rebate of a portion of State of Washington sales taxes assessed and collected within the District. Intergovernmental revenue consists of the proceeds of an Inter -local Agreement between the City of Edmonds, Edmonds Public Facilities District, Snohomish County, and the Snohomish County Public Facilities District. That agreement provides for rebates of sales taxes assessed and collected elsewhere in Snohomish County to public facilities districts in the county, including the District. Under the agreements which generate these revenues, they must be used first to pay the annual principal and interest on the District's long-term debt. The debt that must be so serviced comprises the District's 2008 Sales Tax Obligation and Refunding Bonds (see Note 3) and also the 2012 Contractual Obligation to the City of Edmonds (see Note 3). In any fiscal year in which the Sales Tax and Intergovernmental Revenues exceed the amounts required to service those two liabilities, the excess may be used by the District for operations, capital expenditures, or other debt reduction. The Sales Tax and Intergovernmental Revenues are recorded as revenue during the fiscal period in which they are assessed. Revenues earned but not yet received are recorded in the Statement of Net Position in the current asset line titled "Due from Other Governments." (4) Contributions are the principal revenue source for Edmonds Center for the Arts. They are received in three different forms: cash donations, donation of financial instruments, and donated performance tickets. Contributions are recorded as revenue when they are in the form of voluntary unconditional promises to give. ECA records donations as revenue on the date of receipt. ECA's policy is to sell donated financial instruments immediately thereafter. Donated tickets are placed back into inventory for sale to the public. C. Cash and Cash Equivalents In the statement of Net Position, Cash and Equivalents includes cash in the bank and short-term investments with maturity dates of three months or less which includes the funds held in the State Treasurer's Investment Pool. 11 Packet Pg. 336 8.2.g D. Receivables Customer accounts receivable generally consist of amounts due from renters. Pledges receivable consist of amounts due on promised contributions. The amount due from other governments consists of sales tax from Snohomish County and contributions made from the City of Edmonds. E. Inventories Inventories consist primarily of goods held for sale as concessions. Inventories are valued at historic cost under the FIFO identification method. F. Restricted Assets These accounts contain resources for debt service and construction. Specific debt service reserve requirements are described in Note 3. The restricted assets are composed of the following: Cash — Debt Service $ 92,260 Cash — Construction $ 5,387 G. Compensated Absences The District accrues compensated vacation time for eligible regular full-time employees. Employees who do not use their accrued vacation time during the current year can carry over one year's accrual only to the following year. Any accrued time not used beyond the one year will be forfeited. The one year's liability at December 31, 2016 was $17,386. NOTE 2 — CAPITAL ASSETS Capital assets include land, buildings, equipment and technology/software. The District capitalizes purchased items having a useful life of more than one year and an acquisition value in excess of $5,000. Purchased assets are recorded at cost when placed in service. The District's major capital asset is its renovated auditorium and the un-renovated structure of which it forms a part. That building is being depreciated over a 25-year life using the straight- line method. Other depreciable capital assets are depreciated over their estimated useful lives using the straight-line method. Land and construction in progress are not depreciated. The schedule that follows shows beginning and ending balances, as well as the changes in capital assets and accumulated depreciation during the year ended December 31, 2016. 12 Packet Pg. 337 8.2.g Schedule of Capital Asset Activity Capital assets, nondepreciable: Land Construction in Progress Total capital assets, nondepreciable: Capital assets, depreciable: Building Furniture and Equipment Technology and Software Total capital assets depreciable: Less accumulated depreciation for: Building Furniture and Equipment Technology and Software Total accumulated depreciation: Total net depreciable capital assets: Total capital assets, net: NOTE 3 — LONG-TERM DEBT Balance Balance 1/1/2016 Increases Decreases 12/31/2016 3,444,885 3,444,885 25,111 25,111 $3,469,996 25,111 $3,444,885 14,014,486 166,310 14,180,796 292,890 11,944 304,834 28,778 28,778 $14,336,154 178,253 $14,514,407 (5,177,650) (563,941) (5,741,591) (227,314) (13,976) (241,290) (20,319) (4,111) (24,430) (5,425,283) (582,028) (6,007,311) $8,910,871 (403,775) $8,507,096 $12,380,867 (403,775) 25,111 $11,951,981 In 2008, Edmonds Public Facilities District issued Sales Tax Obligation and Refunding Bonds in the amount of $4,000,000. The bond proceeds were used to refund the District's outstanding balance on its 2005 General and Revenue Obligation Line of Credit ($3,883,804). The remaining proceeds were used to pay bond issuance costs and a portion was placed in reserve for future debt payments. The Bonds were issued pursuant to chapters 35.57 and 39.46 of the Revised Code of Washington and Resolution No. 27 adopted by the District's Board of Directors. When the Sales Tax Obligation and Refunding Bonds were issued, the District entered into a Contingent Loan Agreement (CLA) with the City of Edmonds (the City) providing credit support for the bonds. 13 Packet Pg. 338 8.2.g Sales Tax Obligation and Refunding Bonds currently outstanding as follows: Issue Name Maturity Interest Balance Paid in Date Rates 12/31/2015 2016 Balance 12/31 /2016 4.1 %- Sales Tax Obligation and Refunding Bonds 12/1/2025 4.5% $3,090,000 $210,000 $2,880,000 Following is a table which reflects debt service to maturity for the 2008 Bonds: Year Principal Interest Total 2017 225,000 123,520 348,520 2018 250,000 114,295 364,295 2019 265,000 104,045 369,045 2020-2023 1,315,000 292,780 1,607,780 2024-2026 825,000 55,000 880,000 $2,880,000 $689,640 $3,569,640 In 2002 Edmonds Public Facilities District became obligated under an inter -local agreement with the City of Edmonds to apply its receipts of sales tax revenues to the City over the life of the City's Limited General Obligation Bonds issued in 2002. A major portion of the proceeds of that bond issue was used for the acquisition, renovation and initial operation of a Performing Arts Center by the District. On October 12, 2012, the City of Edmonds refunded the 2002 Limited Tax General Obligation Refunding Bonds with a face amount of $5,650,000. The 2012 refunding bonds are in total a liability of the City of Edmonds and are not reported as liability of the District. However, the District remains contractually obligated to the City of Edmonds to continue to apply its sales tax receipts to the City under the Inter -local agreement as per the schedule below. The liability to the City has been appropriately recorded on the District's Statement of Net Position as "Contractual Obligation to the City of Edmonds." The amount of the District's obligation to the City at the date of refunding was $4,965,000 with interest rates ranging from 1.75% to 3.0%, depending on the maturity of each principal installment. The bonds are scheduled to be retired in annual amounts beginning in 2013 and continuing through 2026. District Contractual Obligation to the City of Edmonds currently outstanding as follows: Maturity Interest Balance Paid in Balance Issue Name Date Rates 12/31/2015 2016 12/31/2016 Contractual Obligation to the City of 1.75%- Edmonds 12/1/2026 3% $4,230,000 $285,000 $3,945,000 14 Packet Pg. 339 8.2.g Following is a table which reflects debt service to maturity for the Contractual Obligation to the City of Edmonds: Year Principal Interest Total 2017 305,000 80,293 385,293 2018 330,000 74,192 404,192 2019 350,000 67,593 417,593 2020-2023 1,660,000 187,270 1,847,270 2024-2026 1,300,000 46,620 1,346,620 $3,945,000 $455,968 $4,400,968 The CLA states that the City pledges its "full faith, credit and resources" in an "absolute and unconditional" obligation to lend money to the District for paying debt service on the bonds. The total amount borrowed in 2016 was $125,000. Interest continues to accrue on the outstanding balance owed. The District was able to pay a higher amount of principal and interest on our 2012 Sales tax Obligations and Refunding Bonds than the previous year. While borrowing from the City remained the same as FY2015. The total principal and interest due on the CLA at December 31, 2016 is $1,173,381. The rate charged by the City is the Local Government Investment Pool monthly rate. The District has made no payments on this loan. The maturity date of this guarantee is when the bonds are paid in full, which is 12/01/2026. The District will repay the below loan starting 01/31/2027, using the sales tax revenue received. NOTE 4 — CHANGES IN LONG-TERM LIABILITIES During the year ended December 31, 2016, the following changes occurred in long-term liabilities: Due Balance Balance Within Issue Name 1/1/2016 Additions Payments 12/31/2016 One Year 2008 Refunding Bonds 3,090,000 210,000 2,880,000 225,000 Contractual Obligation to CoE 4,230,000 285,000 3,945,000 305,000 CLA - City of Edmonds 1,043,690 129,690 1,173,380 Net Pension Liability 492,578 145,323 637,901 Total Long -Term Liabilities $8,856,268 $275,013 $495,000 $8,636,281 $530,000 NOTE 5 — OTHER INCOME In 2016, The District received a Community Development Block Grant in the amount of $119,144 to partially cover the costs of removing barriers and updating a women's bathroom in the facility's "back -of -house" area to comply with the Americans with Disabilities Act. The renovation was completed in June of 2016, the cost of which was included in capital assets. See Note 2. 15 Packet Pg. 340 8.2.g NOTE 6 — PENSION PLAN The following table represents the aggregate pension amounts for all plans subject to the requirements of the GASB Statement 68, Accounting and Financial Reporting for Pensions for the year 2016: Pension Liability $637,398 Pension Assets - Deferred Outflows of Resources $144,004 Deferred Inflows of Resources $11,477 Pension Expense $100,610 State Sponsored Pension Plans Substantially all Edmonds Public Facility District's full-time and qualifying part-time employees participate in the Public Employees' Retirement System (PERS) administered by the Washington State Department of Retirement Systems (DRS), under cost -sharing, multiple -employer public employee defined benefit and defined contribution retirement plans. The state Legislature establishes, and amends, laws pertaining to the creation and administration of all public retirement systems. 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 98540-8380 Or the DRS CAFR may be downloaded from the DRS website at www.drs.wa.gov. Public Employees' Retirement System (PERS) PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior Courts; employees of the legislature; employees of district and municipal courts; employees of local governments; and higher education employees not participating in higher education retirement programs. PERS is comprised of three separate pension plans for membership purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined benefit plan with a defined contribution component. PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the member's average final compensation (AFC) times the member's years of service. The AFC is the average of the member's 24 highest consecutive service months. Members are eligible for retirement from active status at any age with at least 30 years of service, at age 55 with at least 25 years of service, or at age 60 with at least five years of service. Members retiring from active status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non -duty disability payments, an optional cost -of -living 16 Packet Pg. 341 8.2.g adjustment (COLA), and a one-time duty -related death benefit, if found eligible by the Department of Labor and Industries. PERS 1 members were vested after the completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977. Contributions The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer contribution rate is developed by the Office of the State Actuary and includes an administrative expense component that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates. The PERS Plan 1 required contribution rates (expressed as percentage of covered payroll) for 2016 were as follows: PERS Plan 1 Actual Contribution Rates: Employer Employee* PERS Plan 1 6.23% 6.00% PERS Plan 1 UAAL 4.77% 6.00% Administrative Fee 0.18% Total 11.18% 6.00% PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the member's average final compensation (AFC) times the member's years of service for Plan 2 and 1 percent of AFC for Plan 3. The AFC is the average of the member's 60 highest -paid consecutive service months. There is no cap on years of service credit. Members are eligible for retirement with a full benefit at 65 with at least five years of service credit. Retirement before age 65 is considered an early retirement. PERS Plan 2/3 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 benefit that is reduced by a factor that varies according to age for each year before age 65. PERS Plan 2/3 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 three percent for each year before age 65; or • With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return to -work rules. PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of five percent for each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30 years of service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other PERS Plan 2/3 benefits include duty and non -duty disability payments, a cost -of - living allowance (based on the CPI), capped at three percent annually and a one-time duty related death benefit, if found eligible by the Department of Labor and Industries. PERS 2 members are vested after completing five years of eligible service. 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 12 months of that service are earned after age 44. PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings on those contributions. PERS Plan 3 members choose their contribution rate 17 Packet Pg. 342 8.2.g upon joining membership and have a chance to change rates upon changing employers. As established by statute, Plan 3 required defined contribution rates are set at a minimum of 5 percent and escalate to 15 percent with a choice of six options. Employers do not contribute to the defined contribution benefits. PERS Plan 3 members are immediately vested in the defined contribution portion of their plan. Contrihutinns The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to address the PERS Plan 1 UAAL and an administrative expense that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates and Plan 3 contribution rates. The PERS Plan 2/3 required contribution rates (expressed as a percentage of covered payroll) for 2015 were as follows: PERS Plan 2/3 Actual Contribution Rates: Employer 2/3 Employee 2* PERS Plan 2/3 6.23% 6.12% PERS Plan 1 UAAL 4.77% Administrative Fee 0.18% Employee PERS Plan 3 varies Total 11.18% 6.12% The District's actual PERS plan contributions $34,540 to PERS Plan 1 and $45,113 to PERS Plan 2/3 for the year ended December 31, 2016. Actuarial Assumptions The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation completed in 2016 with a valuation date of June 30, 2015. The actuarial assumptions used in the valuation were based on the results of the Office of the State Actuary's (OSA) 2007-2012 Experience Study. Additional assumptions for subsequent events and law changes are current as of the 2015 actuarial valuation report. The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2016. Plan liabilities were rolled forward from June 30, 2015, to June 30, 2016, reflecting each plan's normal cost (using the entry -age cost method), assumed interest and actual benefit payments. Inflation: 3% total economic inflation; 3.75% salary inflation • Salary increases: In addition to the base 3.75% salary inflation assumption, salaries are also expected to grow by promotions and longevity. • Investment rate of return: 7.5% 18 Packet Pg. 343 8.2.g Mortality rates were based on the RP-2000 report's Combined Healthy Table and Combined Disabled Table, published by the Society of Actuaries. The OSA applied offsets to the base table and recognized future improvements in mortality by projecting the mortality rates using 100 percent Scale BB. Mortality rates are applied on a generational basis; meaning, each member is assumed to receive additional mortality improvements in each future year throughout his or her lifetime. There were minor changes in methods and assumptions since the last valuation. • The OSA updated demographic assumptions, consistent with the changes from the 2007- 2012 Experience Study Report, used when valuing the PERS 1 and TERS 1 Basic Minimum COLA. • The OSA corrected how valuation software calculates a member's entry age under the entry age normal actuarial cost method. Previously, the funding age was rounded, resulting in an entry age one year higher in some cases. • For purposes of calculating the Plan 2/3 Entry Age Normal Cost contribution rates, the OSA now uses the current blend of Plan 2 and Plan 3 salaries rather than using a long- term membership assumption of two-thirds Plan 2 members and one-third Plan 3 members • The OSA changed the way it applies salary limits, as described in the 2007-2012 Experience Study Report. Discount Rate The discount rate used to measure the total pension liability for all DRS plans was 7.5 percent To determine that rate, an asset sufficiency test included an assumed 7.7 percent long-term discount rate to determine funding liabilities for calculating future contribution rate requirements. (All plans use 7.7 percent except LEOFF 2, which has assumed 7.5 percent; the District has no employees in this plan). Consistent with the long-term expected rate of return, a 7.5 percent future investment rate of return on invested assets was assumed for the test. Contributions from plan members and employers are assumed to continue being made at contractually required rates (including PERS 2/3, PSERS 2, SERS 2/3, and TRS 2/3 employers, whose rates include a component for the PERS 1 and TRS 1 plan liabilities). Based on these assumptions, the pension plans' fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return of 7.5 percent was used to determine the total liability. Long -Term Expected Rate of Return The long-term expected rate of return on the DRS pension plan investments of 7.5 percent was determined using a building -block -method. The Washington State Investment Board (WSIB) used a best estimate of expected future rates of return (expected returns, net of pension plan investment expense, including inflation) to develop each major asset class. Those expected 19 Packet Pg. 344 8.2.g returns make up one component of WSIB's capital market assumptions. The WSIB uses the capital market assumptions and their target asset allocation to simulate future investment returns at various future times. The long-term expected rate of return of 7.5 percent approximately equals the median of the simulated investment returns over a 50-year time horizon. Estimated Rates of Return by Asset Class Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of June 30, 2016, are summarized in the table below. The inflation component used to create the table is 2.2 percent and represents the WSIB's most recent long-term estimate of broad economic inflation. Asset Class Target Allocation % Long -Term Expected Real Rate of Return Arithmetic Fixed Income 20.00% 1.70% Tangible Assets 5.00% 4.40% Real Estate 15.00% 5.80% Global Equity 37.00% 6.60% Private Equity 23.00% 9.60% 10.00 Sensitivity Analysis The table below presents the District's proportionate share of the net pension liability, calculated using the discount rate of 7.5 percent, as well as what the District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.5 percent) or 1 percentage point higher (8.5 percent) than the current rate. 1% Decrease Current Discount Rate 1% Increase 6.50% 7.50% 8.50% PERS 1 6,476,248,000 5,370,471,000 4,418,882,000 0.005395% 349,394 289,737 238,399 PERS 2/3 9,270,195,000 5,034,921,000 (2,620,967,000) 0.006905% 640,107 347,661 (180,978) Pension Plan Fiduciary Net Position Detailed information about the State's pension plans' fiduciary net position is available in the separately issued DRS financial report. 20 Packet Pg. 345 8.2.g Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2016, the District reported a total pension liability of $637,398 for its proportionate share of the net pension liabilities as follows: Liability PERS 1 $289,737 PERS 2/3 $347,661 Total $637,398 At June 30, the District's proportionate share of the collective net pension liabilities was as follows: Proportionate Share 6/30/15 Proportionate Share 6/30/16 Change in Proportionate Share PERS 1 .005002% .005395% .000393% PERS 2/3 .006463% .006905% .000442% Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the basis for determining each employer's proportionate share of the collective pension amounts reported by the DRS in the Schedules of Employer and Nonemployer Allocations for all plans except LEOFF 1, in which the District does not participate. The collective net pension liability (asset) was measured as of June 30, 2016, and the actuarial valuation date on which the total pension liability (asset) is based was as of June 30, 2015, with update procedures used to roll forward the total pension liability to the measurement date. Pension Expense For the year ended December 31, 2016, the District recognized pension expense of $100,610 as follows: PERS 1 $38,045 PERS 2/3 $62,565 TOTAL $100,610 Deferred Outflows of Resources and Deferred Inflows of Resources At December 31, 2016, the District reported deferred outflows of resources of $144,004 and deferred inflows of resources of $11,477 related to pensions from the following sources: PERS 1 Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience Changes of assumptions 21 Packet Pg. 346 8.2.g Net difference between projected and actual $7,295 earnings on pension plan investments Changes in proportion and differences between contributions and proportionate share of contributions Contributions subsequent to the $17,005 measurement date Total $24,300 PERS 2/3 Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $18,513 $11,477 Changes of assumptions $ 3,593 Net difference between projected and actual $42,544 earnings on pension plan investments Changes in proportion and differences $32,844 between contributions and proportionate share of contributions Contributions subsequent to the $22,210 measurement date Total $119,704 $11,477 Deferred outflows of resources related to pensions resulting from the District's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2017. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended December 31: PERS 1 PERS 2/3 2017 $(5,383) $16,059 2018 $(5,383) $16,059 2019 $3,113 $43,623 2020 $3,470 $21,753 Thereafter - - Total $(4,182) $97,494 NOTE 7 — LONG-TERM RENTAL AGREEMENT In 2006, The District entered a long-term rental agreement with a customer for the use of some of its facilities on designated future dates. The initial term of the agreement was ten years, which expired on October 31, 2013, with the tenant having options to renew for three successive five- year terms. The tenant exercised its option and the agreement now extends through December 31, 2018, with options for two additional five-year terms. The rent is received in monthly payments by the District and totaled $79,201 in 2016, which is included in "Rental Revenues" on 22 Packet Pg. 347 8.2.g the District's Statement of Revenues, Expenses and Changes in Net Position. The rent will increase by 3% per annum in each future year, including renewals. Rents for the years 2017 and 2018 will be: Year 2017 - $81,574 Year 2018 - $84,021 NOTE 8 — DEPOSIT DISCLOSURE Credit Risk. The District complies with state law which requires all investments of the District's funds be obligations of the U.S. Government, U.S. agency issues, Obligations of the State of Washington, repurchase agreements, prime banker's acceptances, the Washington State Local Government Investment Pool, and time certificates of deposit with authorized Washington State banks. Custodial Credit Risk - Deposits. All District and ECA deposits are insured by Federal Depository Insurance Corporation (FDIC) coverage limits. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for coverage over $250,000 if they have funds in different ownership categories and all FDIC requirements are met. All deposits that an accountholder has in the same ownership category at the same bank are added together and insured up to the standard insurance amount. 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 PFD's position in the pool is the same as the value of the shares. NOTE 9 — RISK MANAGEMENT Property/Casualty Risk: Edmonds Public Facilities District is a member of Enduris. Chapter 48.62 RCW provides the exclusive source of local government entity authority to individually or jointly self -insure risks, jointly purchase insurance or reinsurance, and to contract for risk management, claims, and administrative services. Enduris was formed July 10, 1987 pursuant to the provisions of Chapter 23 Packet Pg. 348 8.2.g 48.62 RCW, Chapter 200-100 WAC, and Chapter 39.34 RCW. Two (2) counties and two (2) cities in the State of Washington joined together by signing an interlocal governmental agreement to fund their self -insured losses and jointly purchase insurance and administrative services. As of August 31, 2016, there are 524 Enduris members representing a broad array of special purpose districts throughout the state. Enduris provides property and liability coverage as well as risk management services and other related administrative services. Members make an annual contribution to fund Enduris and share in the self -insured retention of the jointly purchased excess and/or reinsurance coverage. The self -insured retention is: $1,000,000 deductible on liability loss - the member is responsible for the first $1,000 of the deductible amount of each claim, while Enduris is responsible for the remaining $999,000 on a liability loss. $250,000 deductible on property loss - the member is responsible for the first $1,000 of the deductible amount of each claim, while Enduris is responsible for the remaining $249,000 on a property loss. Enduris is responsible for the $4,000 deductible on boiler and machinery loss. Enduris acquires reinsurance from unrelated insurance companies on a "per occurrence" basis to cover all losses over the deductibles as shown on the policy maximum limits. Liability coverage is for all lines of liability coverage including Public Official's Liability. The Property coverage is written on an "all risk", blanket basis using current Statement of Values. The Property coverage includes but is not limited to mobile equipment, boiler and machinery, electronic data processing equipment, business interruption, course of construction and additions, property in transit, fine arts, and automobile physical damage to insured vehicles. Liability coverage limit is $20 million per occurrence and property coverage limit is $1 billion per occurrence. Enduris offers crime coverage up to a limit of $1 million per occurrence. Since Enduris is a cooperative program, there is a joint liability among the participating members. The contract requires members to continue membership for a period of not less than one (1) year and must give notice 60 days before terminating participation. The Master Agreement (Intergovernmental Contract) is automatically renewed after the initial one (1) full fiscal year commitment. Even after termination, a member is still responsible for contribution to Enduris for any unresolved, unreported and in -process claims for the period they were a signatory to the Master Agreement. Enduris is fully funded by its member participants. Claims are filed by members with Enduris and are administered in house. A Board of Directors consisting of seven (7) board members governs Enduris. Its members elect the Board and the positions are filled on a rotating basis. The Board meets quarterly and is responsible for conducting the business affairs of Enduris. The District believes its various property and casualty risks are covered appropriately by its Enduris membership. The amount of settlements has not exceeded insurance coverage in each of the past three years. 24 Packet Pg. 349 8.2.g NOTE 10— FINANCIAL CONDITION The Board of Directors and Management of Edmonds Public Facilities District are confident that the financial condition of the District is stable, and that the strategies outlined in the Management's Discussion and Analysis section of this report will lead to long-term financial stability. Further, the recently adopted extension of the Public Facilities District legislation by the State of Washington (please see "Subsequent Events" below) provides a continuing sales tax revenue stream through 2041 that has added a conservatively -estimated $15 Million in new projected revenue, a resource that will help the District plan for and manage major capital improvements and replacements. Financial reports through April 2017 show an improvement in the District's operating performance by approximately $50,000 through the first four months of the fiscal year, as compared to the same period in FY 2016. District staff has improved operating efficiencies, and has opened new revenue streams such as the sale of advertising in its event programs and other publications. Revenue also increased from ticket sales, rentals and contributions during the 2016-2017 Season, and all indications suggest that this growth will continue for the 2017-2018 Season. In FY 2016, it is important to note that the District's depreciation expense comprised 19.5% of its reported operating expenses. A performing arts center relies upon ticket revenue, rental revenue and private contributions to meet its annual operating requirements and, therefore, it can be challenging to achieve an operating surplus of 20% or higher each fiscal year to cover depreciation. To help meet this challenge, the District's Board of Directors has applied a new fee on tickets sold through the Edmonds Center for the Arts box office that is restricted to capital maintenance and replacement. Please see Management's Discussion and Analysis for more information about this new initiative. NOTE 11 —SUBSEQUENT EVENTS In the most recent legislative session, The Washington State Legislature passed House Bill 1201, and the Bill was subsequently signed into law by Governor Jay Inslee in April, 2017. This new law extends the current legislation establishing and governing Public Facilities Districts, including the related sales tax rebate, by a period of 15 years beyond its current sunset date (2026) to the year 2041. The extension of this funding source will provide the District with a number of options for re -funding or refinancing long-term debt for the purpose of capital maintenance, replacement or improvements. In July of 2017, the District will begin construction on the replacement of the roof over its 1939 gymnasium, and will replace the coping (flashing cap) over the walls surrounding the perimeter of the entire facility (gymnasium, school building, and theatre). The District received two grants in FY 2015 for the purpose of replacing the gymnasium roof: $225,000 from Snohomish County, and $250,000 from the State of Washington, for a total of $475,000 for the project. Once the roof replacement project is complete, any remaining funds from the State appropriation may be invested to help address climate control issues in the gymnasium. 25 Packet Pg. 350 8.2.g REQUIRED SUPPLEMENTARY INFORMATION Schedule of Proportionate Share of the Net Pension Liability Plan PERS 1 As of June 30, 2016 2015 2016 Employer's proportion of the net pension liability (asset) 0.005002% 0.005395% Employer's proportionate share of the net pension liability $261,651 $289,737 Employer's covered employee payroll 0 0 Employer's proportionate share of the net pension liability as a percentage of covered employee payroll 0 0 Plan fiduciary net position as a percentage of the total pension liability 59.10% 57.03% Schedule of Proportionate Share of the Net Pension Liability Plan PERS 2/3 As of June 30, 2016 2015 2016 Employer's proportion of the net pension liability (asset) 0.006463% 0.006463% Employer's proportionate share of the net pension liability $230,927 $289,737 Employer's covered employee payroll $583,133 $661,838 Employer's proportionate share of the net pension liability as a percentage of covered employee payroll 39.6% 43.8% Plan fiduciary net position as a percentage of the total pension liability 89.20% 85.82% Schedule of Proportionate Share of Employer Contributions Plan PERS 1 As of December 31, 2016 2015 2016 Contractually required contributions $26,183 $34,540 Contributions in relation to the contractually required contributions $26,183 $34,540 Contribution deficiency (excess) 0 0 Covered employer payroll 0 0 Contributions as a percentage of covered employee payroll 0% 0% 26 V- 0 a as 0 c c a co 0 N a_ c a w c CD E 0 0 a Packet Pg. 351 8.2.g Schedule of Proportionate Share of Employer Contributions Plan PIERS 2/3 As of December 31, 2016 2015 2016 Contractually required contributions $33,607 $45,112 Contributions in relation to the contractually required contributions $33,607 $45,112 Contribution deficiency (excess) 0 Covered employer payroll $597,937 $724,116 Contributions as a percentage of covered employee payroll 5.62% 6.23% These schedules will be built prospectively until they contain ten years of data. There were no changes of benefit terms for the pension plans. There were no changes of assumptions for the pension plans. 27 Packet Pg. 352 8.2.h City of Edmonds / Edmonds PFD Refinancing Options October 10, 2017 NORTHWEST MUNICIPAL ADVISORS Alan Dashen Scott Bauer Malinda Okerlund Alan@NWMunicipalAdvisors.com Scott@NWMunicipalAdvisors.com Malinda@NWMunicipalAdvisors.com (425) 452-9550 (425) 452-9551 (425) 452-9553 Packet Pg. 353 Bond Market 8.2.h • Interest rates hit historical lows in the Summer of 2016 • Interest rates increased sharply after the November 2016 election, achieving recent highs in December and February • Rates are still low on a historical basis NORTHWEST v v MUNICIPAL ADVISORS Bond Buyer 20-Bond GO Index 1990 to Present 8.00 7.00 6.00 5.00 4.00 JR 3.00 2.00 1.00 0.00 o r-I N m �t Ln lD r� w m o r-I N m :I, Ln [D r� W m o r-I N m Rt v5 w 1- Ql Ql Ql Ql Ql Ql Ql Ql M ❑1 0 0 0 0 0 0 0 0 0 0 r-I r-I r-I r-I r-I r-I r-I r-I Qt Qt Qt Qt Qt Qt Qt Qt M M o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 r-I r-I ri ri ri ri ri r-I r-I r-I N N N N N N N N N N N N N N N N N N Bond Buyer 20-Bond GO Index September 2014 to 2017 4.30 4.10 3.90 3.70 3.50 3.30 3.10 2.90 2.70 2.50 �`' ti< tiC-) ti<-) �0 ti( ti( (0 ell, iya iyo ,yo ,yo ,yo ,yo �o ,yo ,yo mt ei r c� Qi � Q Q a Packet Pg. 354 Current PFD Debt Summary 8.2.h Debt Profile - Edmonds Public Facilities District PFD Bonds (Moody's: Aa2) Par Outstanding Callable Par Final Mat. Coupon Range Sales Tax Obl and Ref 2008 $ 2,880,000 $ 2,655,000 12/1/2025 4.10% - 4.40% LTGO Ref 2012 (PFD Portion of 2002 Bonds) 3,945,000 1,755,000 12/1/2026 1.75% - 3.00% Total PFD Bonds Debt $ 6,825,000 $ 4,410,000 $1, 200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 10�� 1i Sales Tax Obl and Ref 2008 ■ LTGO Ref 2012 (PFD Portion of 2002 Bonds) Sales Tax Rebate Revenue (2016) LTGO Ref 2012 is part of the City's 2012 Bonds. Also included as part of the City's 2012 Bonds on the LTGO tab. NORTHWEST MUNICIPAL ADVISORS b/ 1/LUib 12/1/2022 Packet Pg. 355 Current PFD Debt Service 8.2.h LTGO Ref 2012 (PFD Portion of 2002 Bonds) Principal Coupon Interest Debt Service 2017 $ 305,000 2.00% $ 80,293 $ 385,293 2018 330,000 2.00% 74,193 404,193 2019 350,000 2.00% 67,593 417,593 2020 375,000 2.00% 60,593 435,593 2021 400,000 3.00% 53,093 453,093 2022 430,000 2.00% 41,093 471,093 2023 455,000 1.75% 32,493 487,493 2024 480,000 1.80% 24,530 504,530 2025 510,000 1.90% 15,890 525,890 2026 310,000 2.00% 6,200 316,200 2027 - - - 2028 - - - 2029 - - - 2030 - - - 2031 - - - 2032 - - - 2033 - - - 2034 - - - 2035 - - - 2036 - - - 2037 - - - 2038 - - - 2039 - - - 2040 - - - 2041 - - - Sales Tax Obl and Ref 2008 Principal Coupon Interest Debt Service $ 225,000 4.10% $123,520 $ 348,520 250,000 4.10% 114,295 364,295 265,000 4.20% 104,045 369,045 295,000 4.20% 92,915 387,915 315,000 4.30% 80,525 395,525 340,000 4.30% 66,980 406,980 365,000 4.40% 52,360 417,360 400,000 4.40% 36,300 436,300 425,000 4.40% 18,700 443,700 $3,945,000 $455,968 $4,400,968 $2,880,000 NORTHWEST v Y MUNICIPAL ADVISORS Total Principal Interest Debt Service $ 530,000 $ 203,813 $ 733,813 580,000 188,488 768,488 615,000 171,638 786,638 670,000 153,508 823,508 715,000 133,618 848,618 770,000 108,073 878,073 820,000 84,853 904,853 880,000 60,830 940,830 935,000 34,590 969,590 310,000 6,200 316,200 $689,640 $3,569,640 $6,825,000 $1,145,608 $7,970,608 Packet Pg. 356 City versus PFD Issued Bonds 8.2.h City Issued Security LTGO Interest Rates Lowest Cost Bond Rating &L2 Debt Capacity No Change to City (already counts against City capacity) Removed from PFD capacity Bank Qualified Counts against City BQ limit (BQ) May be moot if "Deemed Designated" Reserve Account None NORTHWEST MUNICIPAL ADVISORS PFD Issued Sales Tax Obligations + City Guarantee City Cost + Est. 0.20% City's Bond Rating (Aa2) No Change to City and PFD Counts against PFD BQ limit May be moot if "Deemed Designated" None Packet Pg. 357 Scenario Summary Scenario Scenario Description 1 Refund PFD 2008 Bonds with City LTGO Bonds No extension to final maturity 2 Refund PFD 2008 Bonds with PFD Sales Tax Bonds No extension to final maturity 3 Refund PFD 2008 Bonds with City LTGO Bonds Extend final maturity to 2030 Continue growth at 3.5% 4 Refund PFD 2008 Bonds with City LTGO Bonds Extend final maturity to 2030 No growth 5 Refund PFD 2008 Bonds with City LTGO Bonds Extend final maturity to 2041 NORTHWEST MUNICIPAL ADVISORS Packet Pg. 358 Scenario Results Summary 8.2.h City of Edmonds / Edmonds Public Facilities District Bond Refunding Analysis 9/27/2017 Refunding Summary for Sales Tax Obligation and Refunding Bonds, 2008 Final Maturity 12/1/2025 Par Amount of Bonds Currently Outstanding $ 2,880,000 Callable Par Amount Outstanding $ 2,655,000 Call Date 6/1/2018 Callable Interest Rate 4.35% Refunding Analysis Issuance Date Par Amount of Refunding Bonds All -in TIC of Refunding Bonds Gross Savings Average Annual Savings Net Present Value Savings (1) Net Present Value Savings % (1) Scenario 1 City LTGO Bonds No Extension 12/1/2017 $ 2,580,000 2.25% $ 233,970 $ 29,246 $ 215,796 8.13% (1) Present value to 12/1/2017 at respective arbitrage yields. NORTHWEST MUNICIPAL ADVISORS Scenario 2 PFD Sales Tax Bonds No Extension 12/1/2017 $ 2,605,000 $ 2.47% $ 205,520 $ $ 25,690 $ 188,044 $ 7.08% Scenario 3 City LTGO Bonds Extend to 2030 3.5% Growth 12/1/2017 2,570,000 $ 2.60% (26,180) $ N/A 155,051 $ 5.84% Scenario 4 City LTGO Bonds Extend to 2030 No Growth 12/1/2017 2,575,000 $ 2.57% 14,920 $ N/A 160,938 $ 6.06% Scenario 5 City LTGO Bonds Extend to 2041 12/1/2017 2,590,000 3.27% (718,230) N/A 10,837 0.41% Packet Pg. 359 Scenario 1 Summary 8.2.h PFD Bonds (Moody's: Aa2) LTGO Ref 2012 (PFD Portion of 2002 Bonds) City LTGO Ref (Ref 2008) Total PFD Bonds Debt $1, 200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Debt Profile - Edmonds Public Facilities District Par Outstanding $ 3,640,000 $ 2,580,000 $ 6,220,000 $ Callable Par Final Mat. Coupon Range Call Date 1,755,000 12/1/2026 1.75% - 3.00% 12/1/2022 - 12/1/2025 3.00% - 4.00% None 1,755,000 tiC5 �Z) � �1 �115 �� �h �� �� �� �C5 , �� �p �h �0 LO LO y0 y0 LO LO LO y0 y0 LO LO LO y0 y0 ,LO ,LO IV IV IV LO ,LO LO y0 y0 City LTGO Ref (Ref 2008) LTGO Ref 2012 (PFD Portion of 2002 Bonds) - - - - • Original Debt Service Sales Tax Rebate Revenue (2016) LTGO Ref 2012 is part of the City's 2012 Bonds. Also included as part of the City's 2012 Bonds on the LTGO tab. NORTHWEST v Y MUNICIPAL ADVISORS r Q Packet Pg. 360 Scenario 1 Debt Service 8.2.h LTGO Ref 2012 (PFD Portion of 2002 Bonds) City LTGO Ref (Ref 2008) Total Savings 2018 $ 330,000 2.00% $ 74,193 $ 404,193 $ 255,000 3.00% $ 81,400 $ 336,400 $ 585,000 $ 155,593 $ 740,593 $ 27,895 2019 350,000 2.00% 67,593 417,593 265,000 3.00% 73,750 338,750 615,000 141,343 756,343 30,295 2020 375,000 2.00% 60,593 435,593 290,000 3.00% 65,800 355,800 665,000 126,393 791,393 32,115 2021 400,000 3.00% 53,093 453,093 310,000 3.00% 57,100 367,100 710,000 110,193 820,193 28,425 2022 430,000 2.00% 41,093 471,093 330,000 3.00% 47,800 377,800 760,000 88,893 848,893 29,180 2023 455,000 1.75% 32,493 487,493 350,000 3.00% 37,900 387,900 805,000 70,393 875,393 29,460 2024 480,000 1.80% 24,530 504,530 380,000 3.00% 27,400 407,400 860,000 51,930 911,930 28,900 2025 510,000 1.90% 15,890 525,890 400,000 4.00% 16,000 416,000 910,000 31,890 941,890 27,700 2026 310,000 2.00% 6,200 316,200 - - - 310,000 6,200 316,200 - 2027 - - - - - - - - - - 2028 - - - - - - - - 2029 - - - - - - - - 2030 - - - - - - - - 2031 - - - - - - - - 2032 - - - - - - - - 2033 - - - - - - - - 2034 - - - - - - - - 2035 - - - - - - - - 2036 - - - - - - - - 2037 - - - - - - - - 2038 - - - - - - - - 2039 - - - - - - - - 2040 - - - - - - - - 2041 - - - - - - - - - - $3,640,000 $375,675 $4,015,675 $2,580,000 $407,150 $2,987,150 $6,220,000 $ 782,825 $7,002,825 $233,970 NORTHWEST v Y MUNICIPAL ADVISORS Packet Pg. 361 Scenario 2 Summary 8.2.h PFD Bonds (Moody's: Aa2) LTGO Ref 2012 (PFD Portion of 2002 Bonds) PFD Sales Tax Ref (Ref 2008) Total PFD Bonds Debt $1, 200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Debt Profile - Edmonds Public Facilities District Par Outstanding $ 3,640,000 $ 2,605,000 $ 6,245,000 $ Callable Par Final Mat. Coupon Range Call Date 1,755,000 12/1/2026 1.75% - 3.00% 12/1/2022 - 12/1/2025 3.00% - 4.00% None 1,755,000 tiC5 �Z) � �1 �115 �h �� �� �� 3� �� �� �h �� 3� lb% �� LO LO y0 y0 LO LO LO y0 ,y0 LO LO LO ,y0 y0 LO LO IV 1y T LO ,LO ,LO y0 y0 PFD Sales Tax Ref (Ref 2008) LTGO Ref 2012 (PFD Portion of 2002 Bonds) - - - - • Original Debt Service Sales Tax Rebate Revenue (2016) LTGO Ref 2012 is part of the City's 2012 Bonds. Also included as part of the City's 2012 Bonds on the LTGO tab. NORTHWEST v Y MUNICIPAL ADVISORS r Q Packet Pg. 362 Scenario 2 Debt Service 8.2.h LTGO Ref 2012 (PFD Portion of 2002 Bonds) PFD Sales Tax Ref (Ref 2008) Total Savings 2018 $ 330,000 2.00% $ 74,193 $ 404,193 $ 255,000 3.00% $ 82,150 $ 337,150 $ 585,000 $ 156,343 $ 741,343 $ 27,145 2019 350,000 2.00% 67,593 417,593 270,000 3.00% 74,500 344,500 620,000 142,093 762,093 24,545 2020 375,000 2.00% 60,593 435,593 295,000 3.00% 66,400 361,400 670,000 126,993 796,993 26,515 2021 400,000 3.00% 53,093 453,093 310,000 3.00% 57,550 367,550 710,000 110,643 820,643 27,975 2022 430,000 2.00% 41,093 471,093 335,000 3.00% 48,250 383,250 765,000 89,343 854,343 23,730 2023 455,000 1.75% 32,493 487,493 355,000 3.00% 38,200 393,200 810,000 70,693 880,693 24,160 2024 480,000 1.80% 24,530 504,530 385,000 3.00% 27,550 412,550 865,000 52,080 917,080 23,750 2025 510,000 1.90% 15,890 525,890 400,000 4.00% 16,000 416,000 910,000 31,890 941,890 27,700 2026 310,000 2.00% 6,200 316,200 - - - 310,000 6,200 316,200 - 2027 - - - - - - - - - - 2028 - - - - - - - - 2029 - - - - - - - - 2030 - - - - - - - - 2031 - - - - - - - - 2032 - - - - - - - - 2033 - - - - - - - - 2034 - - - - - - - - 2035 - - - - - - - - 2036 - - - - - - - - 2037 - - - - - - - - 2038 - - - - - - - - 2039 - - - - - - - - 2040 - - - - - - - - 2041 - - - - - - - - - - $3,640,000 $375,675 $4,015,675 $2,605,000 $410,600 $3,015,600 $6,245,000 $ 786,275 $7,031,275 $205,520 NORTHWEST v Y MUNICIPAL ADVISORS Packet Pg. 363 Scenario 3 Summary 8.2.h PFD Bonds (Moody's: Aa2) LTGO Ref 2012 (PFD Portion of 2002 Bonds) City LTGO Ref (Ref 2008) Total PFD Bonds Debt $1, 200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Debt Profile - Edmonds Public Facilities District Par Outstanding Callable Par Final Mat. Coupon Range Call Date $ 3,640,000 $ 1,755,000 12/1/2026 1.75% - 3.00% 12/1/2022 2,570,000 820,000 12/1/2030 3.00% - 4.00% 12/1/2027 $ 6,210,000 $ 2,575,000 tiC5 �Z) � �1 �115 �� �h �� �� �� �C5 , �� 3� �� �p �h �0 LO LO y0 y0 LO LO LO y0 y0 LO LO LO y0 y0 ,LO ,LO IV IV IV LO ,LO LO y0 y0 City LTGO Ref (Ref 2008) LTGO Ref 2012 (PFD Portion of 2002 Bonds) - - - - • Original Debt Service Sales Tax Rebate Revenue (2016) LTGO Ref 2012 is part of the City's 2012 Bonds. Also included as part of the City's 2012 Bonds on the LTGO tab. NORTHWEST v Y MUNICIPAL ADVISORS r Q Packet Pg. 364 Scenario 3 Debt Service 8.2.h LTGO Ref 2012 (PFD Portion of 2002 Bonds) City LTGO Ref (Ref 2008) Total Savings 2018 $ 330,000 2.00% $ 74,193 $ 404,193 $ 120,000 3.00% $ 83,750 $ 203,750 $ 450,000 $ 157,943 $ 607,943 $160,545 2019 350,000 2.00% 67,593 417,593 130,000 3.00% 80,150 210,150 480,000 147,743 627,743 158,895 2020 375,000 2.00% 60,593 435,593 145,000 3.00% 76,250 221,250 520,000 136,843 656,843 166,665 2021 400,000 3.00% 53,093 453,093 155,000 3.00% 71,900 226,900 555,000 124,993 679,993 168,625 2022 430,000 2.00% 41,093 471,093 165,000 3.00% 67,250 232,250 595,000 108,343 703,343 174,730 2023 455,000 1.75% 32,493 487,493 175,000 3.00% 62,300 237,300 630,000 94,793 724,793 180,060 2024 480,000 1.80% 24,530 504,530 195,000 3.00% 57,050 252,050 675,000 81,580 756,580 184,250 2025 510,000 1.90% 15,890 525,890 205,000 4.00% 51,200 256,200 715,000 67,090 782,090 187,500 2026 310,000 2.00% 6,200 316,200 220,000 4.00% 43,000 263,000 530,000 49,200 579,200 (263,000) 2027 - - - 240,000 4.00% 34,200 274,200 240,000 34,200 274,200 (274,200) 2028 - 255,000 3.00% 24,600 279,600 255,000 24,600 279,600 (279,600) 2029 - 275,000 3.00% 16,950 291,950 275,000 16,950 291,950 (291,950) 2030 - 290,000 3.00% 8,700 298,700 290,000 8,700 298,700 (298,700) 2031 - - - - - - - - 2032 - - - - - - - - 2033 - - - - - - - - 2034 - - - - - - - - 2035 - - - - - - - - 2036 - - - - - - - - 2037 - - - - - - - - 2038 - - - - - - - - 2039 - - - - - - - - 2040 - - - - - - - - 2041 - - - - - - - - - - $3,640,000 $375,675 $4,015,675 $2,570,000 $677,300 $3,247,300 $6,210,000 $1,052,975 $7,262,975 $ (26,180) NORTHWEST v Y MUNICIPAL ADVISORS Packet Pg. 365 Scenario 4 Summary 8.2.h PFD Bonds (Moody's: Aa2) LTGO Ref 2012 (PFD Portion of 2002 Bonds) City LTGO Ref (Ref 2008) Total PFD Bonds Debt $1, 200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Debt Profile - Edmonds Public Facilities District Par Outstanding Callable Par Final Mat. Coupon Range Call Date $ 3,640,000 $ 1,755,000 12/1/2026 1.75% - 3.00% 12/1/2022 2,575,000 695,000 12/1/2030 3.00% - 4.00% 12/1/2027 $ 6,215,000 $ 2,450,000 tiC5 �Z) � �1 �115 �� �h �� �� �� �C5 , �� 3� �� �p �h �0 LO LO y0 y0 LO LO LO y0 y0 LO LO LO y0 y0 ,LO ,LO IV IV IV LO ,LO LO y0 y0 City LTGO Ref (Ref 2008) LTGO Ref 2012 (PFD Portion of 2002 Bonds) - - - - • Original Debt Service Sales Tax Rebate Revenue (2016) LTGO Ref 2012 is part of the City's 2012 Bonds. Also included as part of the City's 2012 Bonds on the LTGO tab. NORTHWEST v Y MUNICIPAL ADVISORS r Q Packet Pg. 366 Scenario 4 Debt Service 8.2.h LTGO Ref 2012 (PFD Portion of 2002 Bonds) City LTGO Ref (Ref 2008) Total Savings 2018 $ 330,000 2.00% $ 74,193 $ 404,193 $ 165,000 3.00% $ 83,500 $ 248,500 $ 495,000 $ 157,693 $ 652,693 $115,795 2019 350,000 2.00% 67,593 417,593 170,000 3.00% 78,550 248,550 520,000 146,143 666,143 120,495 2020 375,000 2.00% 60,593 435,593 170,000 3.00% 73,450 243,450 545,000 134,043 679,043 144,465 2021 400,000 3.00% 53,093 453,093 180,000 3.00% 68,350 248,350 580,000 121,443 701,443 147,175 2022 430,000 2.00% 41,093 471,093 185,000 3.00% 62,950 247,950 615,000 104,043 719,043 159,030 2023 455,000 1.75% 32,493 487,493 190,000 3.00% 57,400 247,400 645,000 89,893 734,893 169,960 2024 480,000 1.80% 24,530 504,530 195,000 3.00% 51,700 246,700 675,000 76,230 751,230 189,600 2025 510,000 1.90% 15,890 525,890 200,000 4.00% 45,850 245,850 710,000 61,740 771,740 197,850 2026 310,000 2.00% 6,200 316,200 210,000 4.00% 37,850 247,850 520,000 44,050 564,050 (247,850) 2027 - - - 215,000 4.00% 29,450 244,450 215,000 29,450 244,450 (244,450) 2028 - 225,000 3.00% 20,850 245,850 225,000 20,850 245,850 (245,850) 2029 - 230,000 3.00% 14,100 244,100 230,000 14,100 244,100 (244,100) 2030 - 240,000 3.00% 7,200 247,200 240,000 7,200 247,200 (247,200) 2031 - - - - - - - - 2032 - - - - - - - - 2033 - - - - - - - - 2034 - - - - - - - - 2035 - - - - - - - - 2036 - - - - - - - - 2037 - - - - - - - - 2038 - - - - - - - - 2039 - - - - - - - - 2040 - - - - - - - - 2041 - - - - - - - - - - $3,640,000 $375,675 $4,015,675 $2,575,000 $631,200 $3,206,200 $6,215,000 $1,006,875 $7,221,875 $ 14,920 NORTHWEST v Y MUNICIPAL ADVISORS Packet Pg. 367 Scenario 5 Summary 8.2.h Debt Profile - Edmonds Public Facilities District PFD Bonds (Moody's: Aa2) Par Outstanding Callable Par Final Mat. Coupon Range Call Date LTGO Ref 2012 (PFD Portion of 2002 Bonds) $ 3,640,000 $ 1,755,000 12/1/2026 1.75% - 3.00% 12/1/2022 City LTGO Ref (Ref 2008) 2,590,000 1,755,000 12/1/2041 3.00% - 4.00% 12/1/2027 Total PFD Bonds Debt $ 6,230,000 $ 3,510,000 $1, 200,000 $1,000,000 $800,000 $600,000 $400,000 — — — — — — — —' $200,000 —�——-—�—�—� ' '111111111,11111 $_I IN IN It ti� ti� ti� titi ti� ti� ti� tih ti� tiA ti� ti1:1 3� 3ti 31 395 3� 3h 3� 3A 31b 1� ,LO ,LO ,y0 City LTGO Ref (Ref 2008) LTGO Ref 2012 (PFD Portion of 2002 Bonds) - - - - • Original Debt Service Sales Tax Rebate Revenue (2016) LTGO Ref 2012 is part of the City's 2012 Bonds. Also included as part of the City's 2012 Bonds on the LTGO tab. NORTHWEST MUNICIPAL ADVISORS Packet Pg. 368 Scenario 5 Debt Service 8.2.h LTGO Ref 2012 (PFD Portion of 2002 Bonds) 2018 $ 330,000 2.00% $ 74,193 $ 404,193 2019 350,000 2.00% 67,593 417,593 2020 375,000 2.00% 60,593 435,593 2021 400,000 3.00% 53,093 453,093 2022 430,000 2.00% 41,093 471,093 2023 455,000 1.75% 32,493 487,493 2024 480,000 1.80% 24,530 504,530 2025 510,000 1.90% 15,890 525,890 2026 310,000 2.00% 6,200 316,200 2027 - - - 2028 - - - 2029 - - - 2030 - - - 2031 - - - 2032 - - - 2033 - - - 2034 - - - 2035 - - - 2036 - - - 2037 - - - 2038 - - - 2039 - - - 2040 - - - 2041 - - - $3,640,000 $375,675 $4,015,675 NORTHWEST v Y MUNICIPAL ADVISORS City LTGO Ref (Ref 2008) Total Savings $ 75,000 3.00% $ 91,550 $ 166,550 $ 405,000 $ 165,743 $ 570,743 $ 197,745 75,000 3.00% 89,300 164,300 425,000 156,893 581,893 204,745 75,000 3.00% 87,050 162,050 450,000 147,643 597,643 225,865 80,000 3.00% 84,800 164,800 480,000 137,893 617,893 230,725 80,000 3.00% 82,400 162,400 510,000 123,493 633,493 244,580 85,000 3.00% 80,000 165,000 540,000 112,493 652,493 252,360 85,000 3.00% 77,450 162,450 565,000 101,980 666,980 273,850 90,000 4.00% 74,900 164,900 600,000 90,790 690,790 278,800 95,000 4.00% 71,300 166,300 405,000 77,500 482,500 (166,300) 95,000 4.00% 67,500 162,500 95,000 67,500 162,500 (162,500) 100,000 3.00% 63,700 163,700 100,000 63,700 163,700 (163,700) 105,000 3.00% 60,700 165,700 105,000 60,700 165,700 (165,700) 105,000 3.00% 57,550 162,550 105,000 57,550 162,550 (162,550) 110,000 3.00% 54,400 164,400 110,000 54,400 164,400 (164,400) 115,000 3.00% 51,100 166,100 115,000 51,100 166,100 (166,100) 115,000 3.00% 47,650 162,650 115,000 47,650 162,650 (162,650) 120,000 4.00% 44,200 164,200 120,000 44,200 164,200 (164,200) 125,000 4.00% 39,400 164,400 125,000 39,400 164,400 (164,400) 130,000 4.00% 34,400 164,400 130,000 34,400 164,400 (164,400) 135,000 4.00% 29,200 164,200 135,000 29,200 164,200 (164,200) 140,000 4.00% 23,800 163,800 140,000 23,800 163,800 (163,800) 145,000 4.00% 18,200 163,200 145,000 18,200 163,200 (163,200) 150,000 4.00% 12,400 162,400 150,000 12,400 162,400 (162,400) 160,000 4.00% 6,400 166,400 160,000 6,400 166,400 (166,400) $2,590,000 $1,349,350 $3,939,350 $6,230,000 $1,725,025 $7,955,025 $(718,230) Packet Pg. 369 8.3 City Council Agenda Item Meeting Date: 10/10/2017 August Monthly Financial Report (5 min.) Staff Lead: Dave Turley Department: Administrative Services Preparer: Sarah Mager Background/History N/A Staff Recommendation No action needed; informational only. Narrative August Monthly Financial Report Attachments: August Monthly Financial Report Packet Pg. 370 I 8.3.a I OF lac. 1 $9v CITY OF EDMONDS MONTHLY BUDGETARY FINANCIAL REPORT AUGUST 2017 Packet Pg. 371 1 I 8.3.a I Page 1 of 1 CITY OFEDMONDS REVENUES BY FUND - SUMMARY Fund 2017 Amended 8/31/2016 8/31/2017 Amount No. Title Budget Revenues Revenues Remaining %Received 001 GENERAL FUND $ 37,821,980 $ 24,759,102 $ 24,441,266 $ 13,380,714 650/ 009 LEOFF-MEDICAL INS. RESERVE 278,630 140,311 144,272 134,358 520/ Ol l RISK MANAGEMENT FUND 6,800 5,574 12,810 (6,010) 1880/ 012 CONTINGENCY RESERVE FUND 44,650 9,671 53,017 (8,367) 1190/ 013 MULTIMODAL TRANSPORTATION FUND - 314 - - 00/ 014 HISTORIC PRESERVATION GIFT FUND 5,030 2,534 108 4,922 2% 016 BUILDING MAINTENANCE 1 452,000 1,661,882 337,241 114,759 750/ 104 DRUG ENFORCEMENT FUND 130,000 68,721 31,380 98,620 240/ O sZ 111 STREET FUND 1,851,750 1,231,713 1,333,598 518,152 72% lY 112 COMBINED STREET CONST/IMPROVE 2 6,397,932 4,834,556 2,624,559 3,773,373 410/ 76 117 MUNICIPAL ARTS ACQUIS. FUND 137,200 35,868 33,486 103,714 240/ C 118 MEMORIAL STREET TREE 120 HOTEL/MOTEL TAX REVENUE FUND 121 EMPLOYEE PARKING PERMIT FUND 122 YOUTH SCHOLARSHIP FUND 123 TOURISM PROMOTIONAL FUND/ARTS 125 REAL ESTATE EXCISE TAX 2 126 REAL ESTATE EXCISE TAXI, PARKS ACQ FUND 127 GIFTS CATALOG FUND 129 SPECIAL PROJECTS FUND 130 CEMETERY MAINTENANCE/IMPROVEMT 132 PARKS CONSTRUCTION FUND 3 136 PARKSTRUST FUND 137 CEMETERY MAINTENANCE TRUST FD 138 SISTER CITY COMMISSION 139 TRANSPORTATION BENEFIT DISTRICT 140 BUSINESS IMPROVEMENT DISTRICT 211 L.I.D. FUND CONTROL 231 2012 LT GO DEBT SERVICE FUND 232 2014 DEBT SERVICE FUND 411 COMBINED UTILITY OPERATION 421 WATER UTILITY FUND 422 STORM UTILITY FUND 423 SEWER/WWTP UTILITY FUND 4 424 BOND RESERVE FUND 511 EQUIPMENT RENTAL FUND 512 TECHNOLOGY RENTAL FUND 617 FIREMEN'S PENSION FUND O 110 100 256 (146) 232% C 91,200 51,093 52,555 38,645 LL 580/ 24,600 9,098 13,501 11,099 550/ r C 1,800 95 617 1,183 340/ 30,450 17,225 18,261 12,189 60% y 1,311,900 865,737 1,016,251 295,649 770/ 1,314,400 866,904 1,018,462 295,938 7 770/ Q 50,390 30,722 29,021 21,369 58% O 280 213 547 (267) 1960/ 177,820 116,851 150,527 27,293 850/ 2,616,940 1,112,706 280,446 2,336,494 R 11°/ 'U 1,070 846 2,171 (1,101) C 2030/ C 22,880 15,822 27,249 (4,369) 1190/ LL 21 10,010 5,781 7,205 2,805 720/ s - 472,042 - - r+ 00/ G - 64,826 63,381 (63,381) 00/ 14,400 1,997 - 14,400 N 00/ 7 695,830 70,301 64,938 630,892 90/ Q - 936,429 - - 0% - 107,964 102,862 (102,862) 00/ 0 8,469,570 5,605,235 5,367,002 3,102,568 630/ v 4,789,173 2,797,357 3,008,177 1,780,996 630/ to Q 12,179,879 6,841,777 8,776,072 3,403,807 720/ 1,988,720 667,448 654,346 1,334,374 330/ 1,628,910 1,095,105 1,264,299 364,611 7 8 % 946,040 - 649,018 297,022 690/ 66,000 57,757 60,705 5,295 920/ $ 83,558,344 $ 54,561,676 $ 51,639,609 $ 31,918,735 620/ Difference between 2016 and 2017 is due to grant invoicing for Fishing Pier Rehab & Mid -Year Transfer difference from 001. 2 Difference between 2016 and 2017 is due to grant invoicing for various projects: 3 Differences between 2016 and 2017 are due to SnoCo Grant, parks donations, and park impact fees 4 Difference between 2016 and 2017 is primarily due to increase in WWTP billings to Partners and the City'sshare. 1 11--I-- .,_ 372 rac,ecei Pg. � i e I 8.3.a I Page 1 of 1 CITY OF EDMO NDS EXPENDITURES BY FUND - SUMMARY Fund 2017 Amended 8/31/2016 8/31/2017 Amount No. Title Budget Expenditures Expenditures Remaining %Spent 001 GENERAL FUND $ 40,156,085 $ 28,202,529 $ 25,860,948 $ 14,295,137 64% 009 LEOFF-MEDICAL INS. RESERVE 293,460 174,499 199,587 93,873 68% 011 RISK MANAGEMENT RESERVE FUND 100,000 - 81,277 18,723 81% 014 HISTORIC PRESERVATION GIFT FUND 5,400 - - 5,400 0% 016 BUILDING MAINTENANCES 545,500 1,549,075 206,006 339,494 38% 104 DRUG ENFORCEMENT FUND 76,030 48,795 48,587 27,443 64% 111 STREET FUND 2,002,810 1,197,599 1,114,484 888,326 56% 112 COMBINED STREET CONST/IMPROVE 6,427,332 2,876,350 2,780,102 3,647,230 43% O 117 MUNICIPAL ARTS ACQUIS. FUND 181,880 45,280 34,950 146,930 19% N 120 HOTEL/MOTEL TAX REVENUE FUND 121 EMPLOYEE PARKING PERMIT FUND 122 YOUTH SCHOLARSHIP FUND 123 TOURISM PROMOTIONAL FUND/ARTS 125 REAL ESTATE EXCISE TAX 2 126 REAL ESTATE EXCISE TAX 1, PARKSACQ FUND 6 127 GIFTS CATALOG FUND 130 CEMETERY MAINTENANCE/IMPROVEMT 132 PARKS CONSTRUCTION FUND 7 138 SISTER CITY COMMISSION 139 TRANSPORTATION BENEFIT DISTRICT 140 BUSINESS IMPROVEMENT DISTRICT 211 L.I.D. FUND CONTROL 231 2012 LT GO DEBT SERVICE FUND 232 2014 DEBT SERVICE FUND 421 WATER UTILITY FUND 422 STORM UTILITY FUND 423 SEWER/WWTP UTILITY FUND 7 424 BOND RESERVE FUND 511 EQUIPMENT RENTAL FUND 512 TECHNOLOGY RENTAL FUND 617 FIREMEN'S PENSION FUND W 104,100 33,078 44,189 59,911 42% R 26,880 - 1,638 25,242 6% 2,000 1,210 1,021 979 51% M C 61,700 13,818 17,531 44,169 28% li 3,065,566 315,324 752,938 2,312,628 25% r C 2,411,421 554,322 179,271 2,232,150 7% 0 51,220 35,120 28,309 22,911 55% y 217,020 109,297 107,439 109,581 50% 7 C) 2,955,000 717,480 497,500 2,457,500 17% 7 Q 10,500 5,185 4,285 6,215 41% O - 472,042 - - 0% - 40,876 50,504 (50,504) 0% R 16,450 - 16,450 - 100% .� C 695,830 70,301 64,938 630,892 9% C - 936,429 - - 0% LL 13,173,652 5,370,596 5,160,481 8,013,171 39% 8,236,907 2,194,686 2,275,698 5,961,209 28% =0 16,916,688 6,566,559 8,554,084 8,362,604 51% 1,989,720 667,442 654,342 1,335,378 33% 1,886,000 1,075,591 1,275,404 610,596 68% Q 890,430 - 483,955 406,475 54% C 72,070 27,489 45,604 26,466 63% d E s $ 102,571,651 $ 53,300,972 $ 50,541,521 $ 52,030,130 49% 5 Differences between 2016 and 2017 are primarily due to Fishing Pier Rehabilitation Project. 6 Differences between 2016 and 2017 are due to purchase of Civic Field in 2016. 7 Differences between 2016 and 2017 are due to construction projects in 2017. 2 a Packet Pg. 373 1 I 8.3.a I Page 1 of 3 C ITY O F EDMO NDS REVENUES - GENERAL FUND 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Revenues Revenues Remaining % Received TAXES: REAL PERSONAL / PROPERTY TAX 8 EMSPROPERTY TAX 9 VOTED PROPERTY TAX LOCAL RETAIL SALESIUSE TAX 10 NATURAL GAS USE TAX 1/10 SALES TAX LOCAL CRIM JUST ELECTRIC UTILITY TAX GAS UT ILIT Y TAX SOLID WASTE UTILITY TAX W AT ER UT ILIT Y T AX SEW ER UT ILITY T AX STORMWATER UTILITY TAX T.V. CABLE UTILITY TAX TELEPHONE UTILITY TAX PULLTABS TAX AMUSEMENT GAMES LEASEHOLD EXCISE TAX LICENSES AND PERMITS: FIRE PERMITS -SPECIAL USE POLICE - FINGERPRINTING PROF AND OCC LICENSE -TAXI AMUSEMENTS VENDING MACHINE/CONCESSION FRANCHISE AGREEMENT -COMCAST FRANCHISE FEE-EDUCATION/GOVERNMENT FRANCHISE AGREEMENT-VERIZON/FRONTIER FRANCHISE AGREEMENT -BLACKROCK OLYMPIC VIEW WATER DISTRICT FRANCHISE GENERAL BUSINESS LICENSE DEV SERV PERMIT SURCHARGE NON-RESIDENT BUS LICENSE RIGHT OF WAY FRANCHISE FEE BUILDING STRUCTURE PERMITS ANIMAL LICENSES STREET AND CURB PERMIT OT R NON -BUS LIC/PERMIT S INTERGOVERNMENTAL: DOJ 15-0404-0-1-754 - BULLET PROOF VEST ROOFTOP SOLAR CHALLENGE II WAASSOC OF SHERIFFS TRAFFIC GRANT TARGET ZERO TEAMS GRANT HIGH VISIBILITY ENFORCEMENT DOCKSIDE DRILLS GRANT REIMBURSE WATERFRONT ANALYSIS GRANT PUD PRIVILEDGE TAX MVET/SPECIAL DISTRIBUTION JUDICIAL SALARY CONTRIBUTION -STATE CRIMINAL JUSTICE -SPECIAL PROGRAMS MARIJUANA ENFORCEMENT DUI - CITIES LIQUOR EXCISE TAX LIQUOR BOARD PROFITS MISCELLANEOUS INT ERLOCAL REVENUE INT ERLOCAL GRANTS VERDANT INT ERLOCAL GRANTS POLICE TRAINING CLASSES $ 10,221,670 $ 5,413,091 $ 5,562,817 $ 4,658,853 54% 3,911,080 1,980,972 2,150,538 1,760,542 55% 10,000 510,649 14,116 (4,116) 141% 6,875,000 4,487,881 4,805,603 2,069,397 70% 7,040 4,020 7,239 (199) 103% 687,500 443,055 461,459 226,041 67% 1,604,000 1,131,516 1,217,184 386,816 76% 608,000 440,093 528,405 79,595 87% 313,600 223,871 218,817 94,783 70% 1,235,300 777,205 754,603 480,697 61% 632,300 418,243 458,180 174,120 72% 331,300 239,539 266,375 64,925 80% 857,600 570,054 579,055 278,545 68% 1,263,200 829,228 736,483 526,717 58% 52,000 38,477 40,587 11,413 78% 40 141 - 40 0% 262,300 192,594 162,364 99,936 62% 28,871,930 17,700,628 17,963,824 10,908,106 627/6 250 190 150 100 60% 300 285 513 (213) 171% 330 - - 330 0% 4,740 - 6,325 (1,585) 133% 50,000 37,498 40,862 9,138 82% 716,800 534,338 544,624 172,176 76% 42,100 28,179 28,169 13,931 67% 102,300 76,654 79,762 22,538 78% 16,600 12,275 10,106 6,494 61% 298,200 202,687 215,607 82,593 72% 116,600 83,136 66,435 50,166 57% 44,940 36,640 50,547 (5,607) 112% 67,800 47,550 48,450 19,350 71% 10,700 46,623 13,880 (3,180) 130% 651,100 495,813 574,525 76,575 88% 35,090 11,109 12,689 22,401 36% 48,150 35,152 32,466 15,684 67% 13,200 12,769 12,447 753 94% 2,219,200 1,660,898 1,737,555 481,645 78% 7,930 6,920 5,949 1,981 75% - 5,250 - - 0% - 995 - - 0% 4,000 3,348 1,030 2,970 26% 7,100 4,675 4,767 2,333 67% - 614 1,399 (1,399) 0% - 330,649 10,000 (10,000) 0% 195,500 197,399 - 195,500 0% 12,680 8,297 8,612 4,068 68% 18,000 13,569 8,358 9,642 46% 42,500 30,279 31,283 11,217 74% 23,700 - - 23,700 0% 3,000 4,740 4,660 (1,660) 155% 191,000 139,331 143,816 47,184 75% 345,600 174,541 172,712 172,888 50% - 75,757 - - 0% - - 35,000 (35,000) 0% 2,000 2,120 2,000 - 100% - - 300 (300) 0% 8.53,010 998,484 429,885 423,125 50% 2017 Real Personal/Property Taxrevenues are $149,726 higher than 2016 revenues. 9 2017 EMS PropertyTax revenues are $169,566 higher than 2016 revenues. a 10 2017 Local Retail Sa/esiUse Taxrevenues are $317,722 higher than 2016 revenues. Please also see pagespages 18 & 19. 3 1 Packet Pg. 374 1 8.3.a Page 2 of 3 CITY OF EDMO NDS REVENUES - GENERAL FUND 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Revenues Revenues Remaining %Received CHARGES FOR GOODS AND SE RVICES: MUNICIPAL COURT CIVIL FILINGS - 25 - - 0% COURT RECORD SERVICES - - 367 (367) 0% RECORD/LEGAL INSTRUMENTS 2,000 1,413 2,958 (958) 148% ATM SURCHARGE FEES 300 243 306 (6) 102% CREDIT CARD FEES 15,000 - 6,722 8,278 45% D/M COURT REC SER 10 43 202 (192) 2022% CIVIL FEE - APPEAL - 53 (53) 0% IT TIME PAY FEE - - 14 (14) 0% MUNIC.-DIST. COURT CURR EXPEN 600 358 182 418 30% SALE MAPS & BOOKS 100 4 36 64 36% CLERKS TIME FOR SALE OF PARKING PERMITS 25,100 - - 25,100 0% BID SUPPLIES REIMBURSEMENT 600 - - 600 0% PHOTOCOPIES 2,000 648 677 1,323 34% 0 POLICE DISCLOSURE REQUESTS 4,000 2,499 2,321 1,679 58% ENGINEERING FEES AND CHARGES11 200,000 163,449 289,490 (89,490) 145% SNO-ISLE 58,000 50,484 60,131 (2,131) 104% 2 PASSPORTSAND NATURALIZATION FEES 17,000 14,984 17,250 (250) 101% C POLICE SERVICES SPECIAL EVENTS 30,000 31,852 13,703 16,297 46% C CAMPUS SAFETY-EDM. SCH. DIST. 66,280 2,873 3,161 63,119 5% ji WOODWAY-LAW PROTECTION 42,000 49,211 50,261 (8,261) 120% >. MISCELLANEOUS POLICE SERVICES 1,500 538 - 1,500 0%�, DUI EMERGENCY FIRE SERVICES 300 - - 300 0% FIRE PROTECTION & EMS FOR DUI - 41 53 (53) 0% FIRE DISTRICT #1 STATION BILLINGS 45,000 39,031 42,179 2,821 94% �+ LEGAL SERVICES - 177 - - 0% 7 ADULT PROBATION SERVICE CHARGE 56,000 46,745 32,020 23,980 57% ELECTRONIC MONITORING - 100 - - 0% Q BOOKING FEES 4,200 2,781 1,884 2,316 4570 " FIRE CONSTRUCTION INSPECTION FEES 8,560 16,471 13,182 (4,622) 154% EMERGENCY SERVICE FEES 8,000 5,426 2,719 5,281 34% Q EMS TRANSPORT USER FEE 12 824,200 673,314 423,461 400,739 51% FIBER SERVICES - 7,625 - - 0% INTERGOVERNMENTAL FIBER SERVICES - 4,800 - - 0% 'V FLEX FUEL PAYMENTS FROM STATIONS 1,800 1,413 1,743 57 97% ANIMAL CONTROL SHELTER 250 204 50 200 20% C ZONING/SUBDIVISION FEE 80,250 60,890 64,643 15,607 81% iz PLAN CHECKING FEES 458,500 270,056 310,171 148,329 68% 2' FIRE PLAN CHECK FEES 3,210 7,200 6,900 (3,690) 215% s+ PLANNING 1% INSPECTION FEE 1,600 1,784 733 867 46% G S.E.P.A. REVIEW 2,140 610 8,040 (5,900) 376% 2 CRITICAL AREA STUDY 18,190 14,060 12,140 6,050 67% N DV COORDINATOR SERVICES 11,460 7,413 7,639 3,821 67% 7 GYM AND WEIGHT ROOM FEES 12,000 8,242 8,912 3,088 74% LOCKERFEES - - 15 (15) 0% Q PROGRAM FEES 910,100 657,581 651,199 258,901 72% TAXABLE RECREATION ACTIVITIES 1,300 964 1,008 292 78% y WINTER MARKET REGISTRATION FEES 11,000 475 700 10,300 6% E BIRD FEST REGISTRATION FEES 750 260 980 (230) 131% V INTERFUND REIMBURSEMENT -CONTRACT SVCS 2,044,540 1,483,492 1,574,480 470,060 77% 4,967,840 3,629,780 3,612,685 1,355,155 73% Q 11 2017 Engineering Fees and Charges are $126,041 higher than 2016 revenues. 12 Difference between 2016 and 2017 is due to a timing difference; payment was received in September of 2017. 4 Packet Pg. 375 1 8.3.a Page 3 of 3 CITY OF EDMO NDS REVENUES - GENERAL FUND 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Revenues Revenues Remaining %Received FINES AND FORFEITURES: PROOF OF VEHICLE INS PENALTY 7,200 4,542 3,224 3,976 45% TRAFFIC INFRACTION PENALTIES 32,800 142,436 146,289 (113,489) 446% NC TRAFFIC INFRACTION 232,500 40,102 23,022 209,478 10% CRT COST FEE CODE LEG ASSESSMENT (LGA) 20,700 14,594 14,610 6,090 71% NON -TRAFFIC INFRACTION PENALTIES - 38,868 400 (400) 0% OTHERINFRACTIONS'04 2,100 1,529 2,091 9 100% PARKING INFRACTION PENALTIES 25,300 17,162 31,189 (5,889) 123% PARK/INDDISZONE 3,600 2,375 1,645 1,955 46% DWI PENALTIES 8,000 16,095 4,423 3,577 55% DUI - DP ACCT 2,800 1,623 1,234 1,566 44% CRIM CNV FEE DUI 500 326 130 370 26% DUI - DP FEE - - 53 (53) 0% OTHER CRIMINAL TRAF MISDEM PEN - - 176 (176) 0% CRIMINAL TRAFFIC MISDEMEANOR 8/03 33,600 21,545 23,722 9,878 71% CRIMINAL CONVICTION FEE CT 2,000 1,808 1,805 195 90% CRIM CONV FEE CT 2,000 1,214 1,099 901 55% OTHERNON-TRAFMISDEMEANORPEN - - 32 (32) 0% OTHER NON TRAFFIC MISD. 8/03 9,300 9,728 6,305 2,995 68% COURT DV PENALTY ASSESSMENT 600 337 413 187 69% CRIMINAL CONVICTION FEE CN 1,900 1,178 787 1,113 41% CRIM CONV FEE CN 500 395 253 247 51% CRIMINAL COSTS-RECOUPMENTS 30,900 18,036 6,171 24,729 20% PUBLIC DEFENSE RECOUPMENT 25,600 16,374 11,280 14,320 44% BANK CHARGE FOR CONY. DEFENDANT 6,000 4,504 5,906 94 98% COURT INTERPRETER COSTS 100 68 246 (146) 246% BUS. LICENSE PERMIT PENALTY 11,000 11,880 9,330 1,670 85% MISC FINES AND PENALTIES 1,400 720 1,440 (40) 103% 460,400 367,441 297,276 163,124 655/6 MISCELLANEOUS: INVESTMENT INTEREST 40,400 33,908 92,539 (52,139) 229% INTEREST ON COUNTY TAXES 5,700 4,204 6,628 (928) 116% INTEREST - COURT COLLECTIONS 5,400 4,559 4,631 769 86% PARKING 15,600 10,720 11,961 3,639 77% SPACE/FACILITIESRENTALS 147,000 108,586 98,964 48,036 67% BRACKET ROOM RENTAL 5,000 3,560 3,520 1,480 70% LEASESLONG-TERM 175,000 119,247 121,590 53,410 69% OTHER RENT S& USE CHARGES 2,400 1,800 1,800 600 75% PARKSDONATIONS 4,350 4,350 3,650 700 84% BIRD FEST CONTRIBUTIONS 3,000 1,200 1,890 1,110 63% VOLUNTEER PICNIC CONTRIBUTIONS 1,000 1,701 - 1,000 0% POLICE CONTRIBUTIONS FROM PRIV SOURCES 1,000 - - 1,000 0% SALE OF JUNK/SALVAGE 300 303 4,842 (4,542) 1614% SALES OF UNCLAIM PROPERTY 3,000 4,802 1,738 1,262 58% CONFISCATED AND FORFEITED PROPERTY 2,000 - - 2,000 0% OTHER JUDGEMENT/SETTLEMENT 2,000 3,851 7 1,993 0% POLICE JUDGMENTSiRESI'ITUTION 200 276 86 114 43% CASHIER'S OVERAGES/SHORTAGES - 60 222 (222) 0% OTHER MISC REVENUES 2,000 10,970 5,477 (3,477) 274% SMALL OVERPAYMENT 30 23 29 1 96% NSF FEES - PARKS & REC 120 - - 120 0% NSF FEES - MUNICIPAL COURT 300 172 335 (35) 112% NSF FEES - POLICE - - 60 (60) 0% US BANK REBATE 7,500 4,153 6,629 871 88% 423,300 318,442 3669598 56,702 87% TRANSFERS -IN: INSURANCE RECOVERIES - 57,595 7,143 (7,143) 0% TRANSFER FROM FUND 127 26,300 25,835 26,300 - 100% 26,300 83,430 339443 (7,143) 127% TOTAL GENERAL FUND REVENUE $ 37,821,980 $ 24,759,102 $ 24,441,266 $13,380,714 65% a 5 Packet Pg. 376 I 8.3.a I Page 1 of 6 C PIY OF EDMO NDS EXPENDITURES BY FUND - DETAIL 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Expenditures Expenditures Remaining %Spent GENERAL FUND EXPENDITURES (001) SALARIES AND WAGES $ 14,731,300 $ 8,974,369 $ 9,304,936 $ 5,426,364 63% OVERTIME 485,880 317,461 341,151 144,729 70% HOLIDAY BUY BACK 226,420 2,349 4,413 222,007 2% BENEFITS 5,499,570 3,410,342 3,610,428 1,889,142 66% UNIFORMS 85,110 57,100 43,138 41,972 51% SUPPLIES 376,509 239,262 223,579 152,930 59% SMALL EQUIPMENT 50,040 81,689 39,394 10,646 79% PROFESSIONAL SERVICES 3,747,383 2,016,356 1,722,915 2,024,468 46% COMMUNICATIONS 182,180 105,325 83,231 98,949 46% TRAVEL 50,430 22,213 33,850 16,580 67% EXCISE TAXES 6,500 - 3,287 3,213 51% ADVERTISING - 2,773 - - 0% RENTAL/LEASE 1,707,550 624,631 1,132,444 575,106 66% INSURANCE 609,550 538,732 616,495 (6,945) 101% UTILITIES 457,800 296,354 305,020 152,780 67% REPAIRS&MAINTENANCE 224,830 141,528 171,950 52,880 76% MISCELLANEOUS 395,500 243,453 184,339 211,161 47% INTERGOVERNMENTAL SERVICES 9,823,140 9,338,667 7,455,630 2,367,510 76% INTERGOVERNMENTAL PAYMENTS 135,000 - - 135,000 0% INTERFUND SUBSIDIES 13 1,080,200 1,739,021 537,130 543,070 50% BUILDINGS 18,323 - - 18,323 0% MACHINERY/EQUIPMENT 58,000 27,449 33,408 24,592 58% GENERAL OBLIGATION BOND PRINCIPAL 164,790 - - 164,790 0% OTHER DEBT 500 - 222 278 44% INTEREST ON LONG-TERM EXTERNAL DEBT 39,580 23,454 13,990 25,591 35% LEOFF-MEDICAL INS. RESERVE(009) BENEFITS IN HOME LTC CLAIMS PROFESSIONAL SERVICES TRAVEL MISCELLANEOUS RISK MANAGEMENT RESERVE FUND (011) MISCELLANEOUS HISTORIC PRESERVATION GIFT FUND (014) SUPPLIES PROFESSIONAL SERVICES MISCELLANEOUS BUILDING MAINTENANCE SUBFUND (016) SUPPLIES PROFESSIONAL SERVICES REPAIRS & MAINTENANENCE MISCELLANEOUS MACHINERY/EQUIPMENT CONSTRUCTION PROJECTS DRUG INFO RCEMEVTFUND (104) FUEL CONSUMED SMALL EQUIPMENT COMMUNICATIONS REPAIR/MAINT MISCELLANEOUS INTERGOVERNMENTAL SERVICES 40,156,085 28,202,529 25,860,948 14,295,137 64% $ 183,190 $ 111,724 $ 112,922 $ 70,268 62% 102,990 60,272 84,466 18,524 82% 7,000 1,286 1,800 5,200 26% - 447 - - 0% 280 770 400 (120) 143% 293,460 174,499 199,587 93,873 68% $ 100,000 $ - $ 81,277 $ 18,723 81 % 100,000 81,277 18,723 811/0 $ 100 $ $ $ 100 0% 200 - 200 0% 5,100 - - 5,100 0% 5,400 - - 5,400 0% $ - $ 1,756 $ - $ 0% 2,000 297,834 41,444 (39,444) 2072% 193,500 35,390 69,893 123,607 36% - 546 - - 0% - 170,972 - - 0% 350,000 1,042,577 94,669 255,331 27% 545,500 1,549,075 206,006 339,494 38% $ 3,000 $ 846 $ 1,142 $ 1,858 38% 5,000 4,968 - 5,000 0% 2,230 1,142 802 1,428 36% 800 - - 800 0% 20,000 10,000 5,000 15,000 25% 45,000 31,839 41,642 3,358 93% 76,030 48,795 48,587 27,443 64% 13 Difference between 2016 and 2017 is primarily due to final payment of 2014 debt. a 6 Packet Pg. 377 I 8.3.a I Page 2 of 6 C ITY O F EDMO NDS EXPENDITURES BY FUND - DETAIL 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Expenditures Expenditures Remaining %Spent STRETTFUND (111) SALARIES AND WAGES $ 555,070 $ 417,980 $ 351,015 $ 204,055 63% OVERTIME 18,400 14,366 19,129 (729) 104% BENEFITS 318,720 212,171 180,070 138,650 56% UNIFORMS 6,000 3,745 3,711 2,289 62% SUPPLIES 350,000 130,556 127,120 222,880 36% SMALL EQUIPMENT 24,000 6,090 8,892 15,108 37% PROFESSIONAL SERVICES 15,050 13,827 9,654 5,396 64% COMMUNICATIONS 3,500 2,582 4,526 (1,026) 129% TRAVEL 1,000 - - 1,000 0% RENTAL/LEASE 181,020 128,032 121,564 59,456 67% INSURANCE 113,230 97,912 110,508 2,722 98% UTILITIES 270,170 157,998 158,808 111,362 59% REPAIRS & MAINTENANCE 111,550 8,510 12,894 98,656 12% MISCELLANEOUS 25,000 1,472 2,595 22,405 10% INTERGOVERNMENTAL SERVICES 5,000 1,492 3,644 1,356 73% GENERAL OBLIGATION BOND PRINCIPAL 3,490 - - 3,490 0% INTEREST ON LONG-TERM EXTERNAL DEBT 1,610 865 354 1,256 22% COMBINED STREETCONST/E"ROVE(112) SALARIES AND WAGES OVERTIME BENEFITS SMALL EQUIPMENT PROFESSIONAL SERVICES REPAIRS & MAINTENANCE INTERFUND SUBSIDIES LAND MACHINERY/EQUIPMENT CONSTRUCTION PROJECTS INTERGOVERNMENTAL LOANS INTEREST MUNIC IPAL ARTS AC Q UIS. FUND (117) SUPPLIES SMALL EQUIPMENT PROFESSIONAL SERVICES TRAVEL RENT AL/LEASE REPAIRS & MAINTENANCE MISCELLANEOUS HO TEL/MO TE L TAX REVENUE FUND (120) PROFESSIONAL SERVICES MISCELLANEOUS INTERFUND SUBSIDIES EMPLOYEEPARIUNG PERMIT FUND (121) SUPPLIES PROFESSIONAL SERVICES YOUTH SCHOLARSHIP FUND (122) MISCELLANEOUS TO URIS M PRO MO TIO NAL FUND/ARTS (123 ) PROFESSIONAL SERVICES MISCELLANEOUS $ 2,002,810 $ 1,197,599 $ 1,114,484 $ 888,326 56% $ - $ - $ 13,853 $ (13,853) 0% - - 672 (672) 0% - - 5,891 (5,891) 0% - - 2,056 (2,056) 0% 2,380,040 854,951 623,521 1,756,519 26% - - 34,602 (34,602) 0% 328,100 40,908 40,711 287,389 12% - 132,896 - - 0% - - 8,166 (8,166) 0% 3,643,922 1,771,998 1,975,392 1,668,530 54% 72,220 72,201 72,201 19 100% 3,050 3,396 3,035 15 100% $ 6,427,332 $ 2,876,350 $ 2,780,102 $ 3,647,230 43% $ 4,700 $ 424 $ 623 $ 4,077 13% 1,700 150 733 967 43% 166,500 41,073 30,164 136,336 181/0 80 11 35 46 43% 2,000 - - 2,000 0% 300 - - 300 0% 6,600 3,622 3,395 3,205 51% $ 181,880 $ 45,280 $ 34,950 $ 146,930 19% $ 93,300 $ 30,977 $ 42,189 $ 51,111 45% 6,800 101 - 6,800 0% 4,000 2,000 2,000 2,000 50% $ 104,100 $ 33,078 $ 44,189 $ 59,911 42% $ 1,790 $ - $ 1,638 $ 152 92% 25,090 - - 25,090 0% $ 26,880 $ - $ 1,638 $ 25,242 6% $ 2,000 $ 1,210 $ 1,021 $ 979 51% $ 2,000 $ 1,210 $ 1,021 $ 979 51% $ 57,200 $ 10,615 $ 15,431 $ 41,769 27% 4,500 3,203 2,100 2,400 47% $ 61,700 $ 13,818 $ 17,531 $ 44,169 28% a 7 Packet Pg. 378 I 8.3.a I Page 3 of 6 C ITY O F EDMO NDS EXPENDITURES BY FUND - DETAIL 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Expenditures Expenditures Remaining %Spent REAL ESTATE EXCISE TAX (125) SUPPLIES $ 21,000 $ 46,639 $ 48,567 $ (27,567) 231% PROFESSIONAL SERVICES 150,000 98,138 261,471 (111,471) 174% RENTAL/LEASE - 2,790 - - 0% UTILITIES - - 1,649 (1,649) 0% REPAIRS&MAINTENANCE 140,000 12,605 - 140,000 0% MISCELLANEOUS - 181 - - 0% CONST RUCT ION PROJECTS 2,754,566 154,972 441,252 2,313,314 16% $ 3,065,566 $ 315,324 $ 752,938 $ 2,312,628 25% REAL ESTATE EXCISE TAX I, PARKS AC (126) PROFESSIONAL SERVICES INTERFUND SUBSIDIES LAND CONSTRUCTION PROJECTS GENERAL OBLIGATION BONDS INTEREST OTHER INTEREST & OTHER DEBT SERVICE COSTS GIFTS CATALOG FUND (127) SUPPLIES PROFESSIONAL SERVICES MISCELLANEOUS INTERFUND SUBSIDIES C EVIEIERY MAINTENANC UIMPRO VEMENT (130) SALARIES AND WAGES OVERTIME BENEFITS UNIFORMS SUPPLIES SUPPLIES PURCHASED FOR INVENTORY/RESALE PROFESSIONAL SERVICES COMMUNICATIONS TRAVEL RENT AL/LEASE UTILITIES REPAIRS & MAINTENANCE MISCELLANEOUS PARKS CONSTRUCTION FUND (132) SUPPLIES PROFESSIONAL SERVICES LAND CONTT RUCT ION PROJECTS SISTER CITY COMMISSION (138) SUPPLIES TRAVEL MISCELLANEOUS TRANSPORTATION BENEFIT DISTRICT (139) INSURANCE INTERGOVERNMENTAL SERVICES $ 118,255 $ - $ 11,409 $ 106,846 10% 142,330 17,213 16,163 126,168 11% 200,000 476,669 43,201 156,799 22% 1,921,206 55,406 106,364 1,814,842 6% 20,280 - - 20,280 0% 9,350 5,033 2,062 7,288 22% - - 72 (72) 0% $ 2,411,421 $ 554,322 $ 179,271 $ 2,232,150 7% $ 17,820 $ 2,985 $ 2,009 $ 15,811 11% 6,500 6,300 - 6,500 0% 600 - - 600 0% 26,300 25,835 26,300 - 100% $ 51,220 $ 35,120 $ 28,309 $ 22,911 55% $ 124,410 $ 57,127 $ 49,780 $ 74,630 40% 3,500 1,015 2,935 565 84% 35,910 23,875 23,471 12,439 65% 1,000 - - 1,000 0% 7,000 2,715 1,117 5,883 16% 20,000 12,426 8,204 11,796 41% 4,200 917 5,463 (1,263) 130% 1,410 666 903 507 64% 500 - - 500 0% 10,790 7,700 7,193 3,597 67% 3,800 610 3,209 591 84% 500 - - 500 0% 4,000 2,246 5,162 (1,162) 129% $ 217,020 $ 109,297 $ 107,439 $ 109,581 50% $ 20,000 $ - $ - $ 20,000 0% 600,000 40,247 86,049 513,951 14% - 475,710 - - 0% 2,335,000 201,523 411,450 1,923,550 18% $ 2,955,000 $ 717,480 $ 497,500 $ 2,457,500 17% $ 1,500 $ 168 $ 243 $ 1,257 16% 4,500 2,515 2,839 1,661 63% 4,500 2,502 1,203 3,297 27% $ 10,500 $ 5,185 $ 4,285 $ 6,215 41% $ - $ 2,500 $ - $ - 0% 469,542 - - 0% $ - $ 472,042 $ - $ - 0% a Packet Pg. 379 I 8.3.a I Page 4 of 6 C ITY O F IDMO NDS EXPENDITURES BY FUND - DETAIL 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Expenditures Expenditures Remaining %Spent BUSINESS IMPROVEMENTDISTRICTFUND (140) SUPPLIES $ - $ 5,466 $ 842 $ (842) 0% PROFESSIONAL SERVICES - 34,457 48,337 (48,337) 0% MISCELLANEOUS - 953 1,326 (1,326) 0% - 40,876 $ 50,504 $ (50,504) 0% LID FUND CONTROL (211) INTERFUND SUBSIDIES $ 16,450 $ - $ 16,450 $ 100% $ 16,450 $ $ 16,450 $ - 100% 2012 LTGO DEBT SERVIC FUND (231) GENERAL OBLIGATION BOND $ 565,450 $ - $ - $ 565,450 0% INTEREST 129,880 70,301 64,938 64,942 50% OTHER INT EREST & DEBT SERVICE COSTS 500 - - 500 0% $ 695,830 $ 70,301 $ 64,938 $ 630,892 9% 2014 DEBT SERVICE FUND (232) 2014 PRINCIPAL PAYMENT INTEREST WATER FUND (421) SALARIES AND WAGES OVERTIME BENEFITS UNIFORMS SUPPLIES WATER PURCHASED FOR RESALE SUPPLIES PURCHASED FOR INVENTORY/RESALE SMALL EQUIPMENT PROFESSIONAL SERVICES COMMUNICATIONS TRAVEL EXCISE TAXES RENT AL/LEASE INSURANCE UTILITIES REPAIRS & MAINTENANCE MISCELLANEOUS INTERGOVERNMENTAL SERVICES INTERFUND TAXES INTERFUND SUBSIDIES MACHINERY/EQUIPMENT CONTT RUCT ION PROJECTS GENERAL OBLIGATION BONDS REVENUE BONDS INTERGOVERNMENTAL LOANS INTEREST OT HER INT EREST & DEBT SERVICE COSTS $ - $ 933,208 $ - $ - 0% - 3,221 - - 0% $ - $ 936,429 $ - $ - 0% $ 844,510 $ 521,559 $ 500,099 $ 344,411 59% 24,000 16,049 13,813 10,187 58% 405,720 239,865 238,221 167,499 59% 4,000 2,534 4,727 (727) 118% 150,000 72,720 103,773 46,227 69% 1,667,500 1,032,412 1,043,361 624,139 63% 143,000 62,231 149,488 (6,488) 105% 19,730 3,845 2,165 17,565 11% 2,181,281 737,695 968,796 1,212,485 44% 30,000 19,006 21,003 8,997 70% 200 - - 200 0% 340,000 262,177 249,921 90,079 74% 146,130 65,433 95,405 50,725 65% 56,050 52,335 58,214 (2,164) 104% 35,000 14,436 16,571 18,429 47% 17,500 18,017 34,765 (17,265) 199% 83,500 41,157 52,299 31,201 63% 30,000 25,761 27,686 2,314 92% 1,229,110 777,205 754,603 474,507 61% 642,020 219,326 215,315 426,705 34% 25,000 - - 25,000 0% 4,488,771 1,031,987 460,364 4,028,407 10% 2,340 - - 2,340 0% 335,510 - - 335,510 0% 25,840 25,839 25,839 1 100% 246,940 129,008 123,678 123,262 50% - - 375 (375) 0% $ 13,173,652 $ 5,370,596 $ 5,160,481 $ 8,013,171 39% r a 9 Packet Pg. 380 I 8.3.a I Page 5 of 6 C ITY O F EDMO NDS EXPENDITURES BY FUND - DETAIL 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Expenditures Expenditures Remaining %Spent STORM FUND (422) SALARIES AND WAGES $ 523,320 $ 326,472 $ 388,887 $ 134,433 74% OVERTIME 6,000 8,410 8,071 (2,071) 135% BENEFITS 262,680 167,082 204,327 58,353 78% UNIFORMS 6,500 5,450 4,600 1,900 71% SUPPLIES 46,000 15,347 25,729 20,271 56% SMALL EQUIPMENT 5,730 1,227 5,880 (150) 103% PROFESSIONAL SERVICES 2,189,024 660,905 672,524 1,516,500 31% COMMUNICATIONS 3,200 1,743 3,316 (116) 104% TRAVEL 4,300 300 - 4,300 0% EXCISE TAXES 55,000 34,603 37,697 17,303 69% RENTAL/LEASE 264,970 165,832 173,970 91,000 66% INSURANCE 71,540 63,187 72,028 (488) 101% UTILITES 10,500 6,138 6,563 3,937 63% REPAIR & MAINTENANCE 13,000 2,266 13,943 (943) 107% MISCELLANEOUS 101,000 32,821 55,004 45,996 54% INTERGOVERNMENTAL SERVICES 150,000 122,643 66,686 83,314 44% INTERFUND TAXESAND OPERATING ASSESSMENT 330,430 239,539 266,375 64,055 81% INTERFUND SUBSIDIES 293,910 95,380 84,737 209,173 29% CONST RUCT ION PROJECTS 3,459,813 129,348 84,252 3,375,561 2% GENERAL OBLIGATION BONDS 85,440 - - 85,440 0% REVENUE BONDS 164,000 - - 164,000 0% INTERGOVERNMENTAL LOANS 32,070 32,063 32,063 8 100% INTEREST 158,480 83,932 68,881 89,599 43% OT HER INT EREST & DEBT SERVICE COSTS - - 165 (165) 0% $ 8,236,907 $ 2,194,686 $ 2,275,698 $ 5,961,209 28% SEWER FUND (423) SALARIES AND WAGES OVERTIME BENEFITS UNIFORMS SUPPLIES FUEL CONSUMED SUPPLIES PURCHASED FOR INV OR RESALE SMALL EQUIPMENT PROFESSIONAL SERVICES COMMUNICATIONS TRAVEL EXCISE TAXES RENT AL/LEASE INSURANCE UTILITIES REPAIR & MAINTENANCE MISCELLANEOUS INTERGOVERNMENTAL SERVICES INTERFUND TAXESAND OPERATING ASSESSMENT INTERFUND SUBSIDIES MACHINERY/EQUIPMENT CONTT RUCT ION PROJECTS GENERAL OBLIGATION BONDS REVENUE BONDS INTERGOVERNMENTAL LOANS INTEREST OT HER INT EREST & DEBT SERVICE COSTS BOND RESERVEFUND (424) REVENUE BONDS INTEREST OT HER INT EREST & DEBT SERVICE COSTS $ 1,783,120 $ 1,136,571 $ 1,119,780 $ 663,341 63% 95,000 60,701 66,410 28,590 70% 784,430 510,707 512,455 271,975 65% 9,500 5,747 7,363 2,137 78% 417,200 168,750 116,159 301,041 28% 80,000 31,527 51,745 28,255 65% 4,000 - 2,989 1,011 75% 62,730 21,411 17,570 45,160 28% 1,837,472 1,124,817 1,368,283 469,189 74% 43,000 26,165 26,187 16,813 61% 5,000 1,097 - 5,000 0% 170,000 125,368 154,508 15,492 91% 306,650 118,946 202,074 104,576 66% 109,270 106,915 116,720 (7,450) 107% 1,217,860 873,015 452,976 764,884 37% 340,000 168,762 171,408 168,592 50% 117,950 37,925 71,758 46,192 61% 178,000 125,222 66,576 111,424 37% 629,140 418,243 458,180 170,960 73% 2,267,430 518,760 1,210,036 1,057,394 53% 110,000 - 87,791 22,209 80% 5,854,736 764,622 2,068,705 3,786,031 35% 132,950 - - 132,950 0% 75,510 - - 75,510 0% 171,240 157,034 157,346 13,894 9270 114,500 61,299 43,880 70,620 38% - 2,955 3,187 (3,187) 0% $ 16,916,688 $ 6,566,559 $ 8,554,084 $ 8,362,604 51% $ 680,020 $ - $ - $ 680,020 0% 1,308,700 667,442 654,342 654,358 50% 1,000 - - 1,000 0% $ 1,989,720 $ 667,442 $ 654,342 $ 1,335,378 33% a 10 Packet Pg. 381 I 8.3.a I Page 6 of 6 CITY OF EDMO NDS EXPENDITURES BY FUND - DETAIL 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Expenditures Expenditures Remaining %Spent EQ UIPMENT RENTAL FUND (511) SALARIES AND WAGES $ 238,360 $ 147,861 $ 155,735 $ 82,625 65% OVERTIME 2,000 - 48 1,952 2% BENEFITS 103,580 64,897 68,670 34,910 66% UNIFORMS 1,000 805 595 405 59% SUPPLIES 110,000 56,301 45,983 64,017 42% FUEL CONSUMED 1,000 - - 1,000 0% SUPPLIES PURCHASED FOR INVENTORY/RESALE 294,200 85,752 115,596 178,604 39% SMALL EQUIPMENT 58,000 9,256 52,788 5,212 91% PROFESSIONAL SERVICES 44,000 937 1,839 42,161 4% COMMUNICATIONS 3,000 1,550 1,493 1,507 50% TRAVEL 1,000 1,000 - 1,000 0% RENTAL/LEASE 15,350 12,842 9,958 5,392 65% INSURANCE 29,010 29,967 26,351 2,659 91% UTILITIES 14,000 7,739 8,463 5,537 60% REPAIRS & MAINTENANCE 60,000 34,055 33,792 26,208 56% MISCELLANEOUS 12,000 6,760 7,829 4,171 65% INTERGOVERNMENTAL SERVICES 2,500 1,288 1,189 1,311 48% MACHINERY/EQUIPMENT 897,000 614,580 745,075 151,925 83% $ 1,886,000 $ 1,075,591 $ 1,275,404 $ 610,596 68% TECHNOLOGY RENTAL FUND (512) SALARIES AND WAGES $ 277,270 $ - $ 184,870 $ 92,400 67% OVERTIME 2,000 - 30 1,970 2% BENEFITS 92,150 - 61,136 31,014 66% SUPPLIES 5,000 - 12,225 (7,225) 244% SMALL EQUIPMENT 23,000 - 37,421 (14,421) 163% PROFESSIONAL SERVICES 114,000 - 17,662 96,338 15% COMMUNICATIONS 65,270 - 28,720 36,550 44% TRAVEL 1,500 - (17) 1,517 -1% RENTAL/LEASE 7,850 - 6,251 1,599 80% REPAIRS & MAINTENANCE 241,390 - 126,182 115,208 52% MISCELLANEOUS 5,000 - 9,474 (4,474) 189% MACHINERY/EQUIPMENT 56,000 - - 56,000 0% $ 890,430 $ - $ 483,955 $ 406,475 54% FHtII1IENPS PENSION FUND (617) BENEFITS $ 22,550 $ 11,389 $ 14,053 $ 8,497 62% PENSION AND DISABILITY PAYMENTS 48,320 15,885 31,551 16,769 65% PROFESSIONAL SERVICES 1,200 214 - 1,200 0% $ 72,070 $ 27,489 $ 45,604 $ 26,466 63% TOTAL EXPENDITURE ALL FUNDS $ 102,571,651 $ 53,300,972 $ 50,541,521 $ 52,030,130 49% r a 11 Packet Pg. 382 8.3.a Page 1 of 1 C ITY O F EDMO NDS EXPENDITURES - GENERAL FUND - BY DEPARTMENTIN SUMMARY 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Expenditures Expenditures Remaining %Spent CITY COUNCIL OFFICE OF MAYOR HUMAN RESOURCES MUNICIPAL COURT CITY CLERK FINANCE CITY ATTORNEY NON -DEPARTMENTAL POLICE SERVICES COMMUNITY SERVICESIECONOMIC DEV DEVELOPMENT SERVICES PARKS& RECREATION PUBLIC WORKS FACILITIES MAINTENANCE Title $ 376,120 $ 143,459 $ 197,804 $ 178,316 53% 276,700 171,288 182,492 94,208 66% 456,490 235,942 245,681 210,809 54% 994,140 577,433 640,933 353,207 64% 640,700 371,081 428,048 212,652 67% 1,049,560 956,740 709,795 339,765 68% _ 818,780 467,705 509,955 308,825 62% 0 12,665,445 11,927,542 8,967,984 3,697,461 71% 10,527,420 6,111,444 6,479,161 4,048,259 62% .� 576,730 325,051 335,997 240,734 58% M C 3,117,387 1,616,477 1,743,617 1,373,770 56% li 4,165,215 2,491,385 2,595,035 1,570,180 62% r c 2,896,370 1,867,395 1,761,753 1,134,617 61% �0 1,595,028 939,588 1,062,692 532,336 67% y 7 $ 40,156,085 $ 28,202,529 $ 25,860,948 $ 14,295,137 64% 7 Q O Q d lY CITY OF EDMO NDS ca v EXPENDITURES - UTILITY- BY FUND IN SUMMARY r_ M C 2017 Amended 8/31/2016 8/31/2017 Amount LL Budget Expenditures Expenditures Remaining %Spent 2+ s WATER UTILITY FUND $ 13,173,652 $ 5,370,596 $ 5,160,481 $ 8,013,171 39% O STORM UTILITY FUND 8,236,907 2,194,686 2,275,698 5,961,209 28% 2 y SEWER/WWTP UTILITY FUND 16,916,688 6,566,559 8,554,084 8,362,604 0 51% BOND RESERVE FUND 1,989,720 667,442 654,342 1,335,378 O a 33% $ 40,316,967 $ 14,799,284 $ 16,644,604 $ 23,672,363 41% _ d E z t� to r� r a 12 Packet Pg. 383 I 8.3.a I Page I of 4 C TTY OF EDMO NDS EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN DETAIL Title 2017 Amended Budget 8/31/2016 Expenditures 8/31/2017 Expenditures Amount Remaining %Spent CITY COUNCIL SALARIES $ 158,170 $ 77,544 $ 113,382 $ 44,788 72% OVERTIME 1,000 93 - 1,000 0% BENEFITS 108,520 58,103 69,298 39,222 64% SUPPLIES 2,000 1,612 1,059 941 53% SMALL EQUIPMENT - - 285 (285) 0% PROFESSIONAL SERVICES 62,160 1,432 1,644 60,516 3% COMMUNICATIONS 3,000 2,111 2,101 899 70% TRAVEL 6,700 1,277 1,095 5,605 16% RENTAL/LEASE 9,070 219 5,720 3,350 63% REPAIRS/MAINTENANCE 500 15 - 500 0% MISCELLANEOUS 25,000 1,055 3,220 21,780 13% $ 376,120 $ 143,459 $ 197,804 $ 178,316 53% 0 FFIC E 0 F MAYO R SALARIES $ 202,230 $ 131,655 $ 134,880 $ 67,350 67% BENEFITS 49,670 32,052 32,982 16,688 66% SUPPLIES 1,500 733 416 1,084 28% PROFESSIONAL SERVICES 2,000 1,191 1,582 418 79% COMMUNICATION 1,400 802 810 590 58% TRAVEL 4,000 538 1,053 2,947 26% RENTAL/LEASE 11,450 1,112 7,275 4,175 64% MISCELLANEOUS 4,450 3,207 3,494 956 79% $ 276,700 $ 171,288 $ 182,492 $ 94,208 66% HUMAN RESOURCES SALARIES $ 249,980 $ 143,926 $ 144,600 $ 105,380 58% OVERTIME - 43 369 (369) 0% BENEFITS 79,390 49,386 50,014 29,376 63% SUPPLIES 2,300 2,503 850 1,450 37% SMALL EQUIPMENT 300 - 110 190 37% PROFESSIONAL SERVICES 78,000 31,325 27,164 50,836 35% COMMUNICATIONS 700 688 713 (13) 102% TRAVEL 1,000 416 337 663 34% RENTAL/LEASE 19,790 1,531 14,267 5,523 72% REPAIR/MAINTENANCE 7,850 - 7,056 794 90% MISCELLANEOUS 17,180 6,124 202 16,978 1% $ 456,490 $ 235,942 $ 245,681 $ 210,809 54% MUNIC IPAL C O URT SALARIES $ 609,690 $ 372,848 $ 388,256 $ 221,434 64% OVERTIME 600 1,738 441 159 73% BENEFITS 222,520 134,431 151,658 70,862 68% SUPPLIES 6,700 4,515 4,458 2,242 67% SMALL EQUIPMENT 900 262 474 426 53% PROFESSIONAL SERVICES 73,000 48,153 53,876 19,124 74% COMMUNICATIONS 2,100 1,546 1,724 376 82% TRAVEL 4,500 2,360 1,708 2,792 38% RENTAL/LEASE 39,280 539 26,296 12,984 67% REPAIR/MAINTENANCE 1,250 885 537 713 43% MISCELLANEOUS 33,600 10,156 11,505 22,095 34% $ 994,140 $ 577,433 $ 640,933 $ 353,207 64% a 13 Packet Pg. 384 1 I 8.3.a I Page 2 of 4 CITY OFEDMONDS EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN DEIAAIL 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Expenditures Expenditures Remaining %Spent CITY CLERK SALARIES AND WAGES $ 326,390 $ 224,711 $ 217,796 $ 108,594 67% OVERTIME 1,000 1,509 - 1,000 0% BENEFITS 140,440 85,992 98,612 41,828 70% SUPPLIES 10,240 5,079 3,104 7,136 30% SMALL EQUIPMENT - 1,416 - - 0% PROFESSIONAL SERVICES 28,310 18,082 21,446 6,864 76% COMMUNICATIONS 50,000 7,264 17,691 32,309 35% TRAVEL 1,000 - 315 685 31% RENTAL/LEASE 50,810 12,867 33,984 16,826 67% REPAIRS& MAINTENANCE 28,510 10,448 30,422 (1,912) 107% MISCELLANEOUS 4,000 3,712 4,679 (679) 117% $ 640,700 $ 371,081 $ 428,048 $ 212,652 67% FINANCE SALARIES $ 696,560 $ 558,309 $ 455,260 $ 241,300 65% OVERTIME 4,500 1,633 - 4,500 0% BENEFITS 223,910 188,134 150,220 73,690 67% SUPPLIES 7,350 4,440 3,136 4,214 43% SMALL EQUIPMENT 2,650 45,574 1,612 1,038 61% PROFESSIONAL SERVICES 32,800 21,479 32,838 (38) 100% COMMUNICATIONS 2,000 35,299 1,098 902 55% TRAVEL 2,600 833 1,577 1,023 61% RENTAL/LEASE 30,340 7,897 20,801 9,539 6970 REPAIR/MAINTENANCE 38,500 38,804 40,372 (1,872) 105% MISCELLANEOUS 8,350 54,336 2,880 5,470 34% $ 1,049,560 $ 956,740 $ 709,795 $ 339,765 68% CITY ATTORNEY PROFESSIONAL SERVICES $ 818,780 $ 465,569 $ 509,955 $ 308,825 62% MISCELLANEOUS 2,137 0% $ 818,780 $ 467, 005 $ 509,955 $ 308,825 62% NON -DEPARTMENTAL SALARIES $ 51,525 $ - $ - $ 51,525 0% BENEFITS -UNEMPLOYMENT 25,000 2,775 811 24,189 3% SUPPLIES 5,000 1,542 889 4,111 18% PROFESSIONAL SERVICES 726,430 277,340 318,092 408,338 44% EXCISE TAXES 6,500 2,773 3,287 3,213 51% RENTAL/LEASE 10,480 3,600 8,187 2,293 78% INSURANCE 609,550 538,732 616,495 (6,945) 101% MISCELLANEOUS 69,000 48,223 49,206 19,794 71% INTERGOVT SERVICES 14 9,741,890 9,290,081 7,419,677 2,322,213 76% ECA LOAN PAYMENT 135,000 - - 135,000 0% INTERFUND SUBSIDIES 15 1,080,200 1,739,021 537,130 543,070 50% GENERAL OBLIGATION BOND 164,790 - - 164,790 0% INTEREST ON LONG-TERM DEBT 39,580 23,454 13,990 25,591 35% FISCAL AGENT FEES 500 - 222 278 44% $ 12,665,445 $ 11,927,542 $ 8,967,984 $ 3,697,461 71% r a 14 Difference between 2016 and 2017 is due to completion of Fire District One Retro Payments in 2016. 15 Differences between 2016 and 2017 are primarily due to final payment of 2014 debt. 14 r- Packet Pg. 385 1 I 8.3.a I Page 3 of 4 C ITY O F EDMO NDS EXPENDITURES - GINERAL FUND - BY DEPARTMENTIN DETAIL 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Expenditures Expenditures Remaining %Spent PO LIC E S ERVIC ES SALARIES $ 6,209,630 $ 3,732,101 $ 3,847,834 $ 2,361,796 62% OVERTIME 454,780 289,812 310,134 144,646 68% HOLIDAY BUYBACK 226,420 2,349 4,413 222,007 2% BENEFITS 2,332,980 1,451,503 1,497,212 835,768 64% UNIFORMS 75,450 50,818 36,526 38,924 48% SUPPLIES 88,500 52,879 36,354 52,146 41% SMALL EQUIPMENT 28,210 18,842 17,055 11,155 60% PROFESSIONAL SERVICES 117,670 58,100 58,584 59,086 50% COMMUNICATIONS 50,820 18,566 23,268 27,552 46% TRAVEL 17,310 10,567 18,322 (1,012) 106% RENTAL/LEASE 842,630 393,897 557,551 285,079 66% REPAIR/MAINTENANCE 15,120 5,112 4,235 10,885 28% Q. MISCELLANEOUS 46,350 21,624 26,188 20,162 57% INTERGOVTL SERVICES 10,550 5,274 8,078 2,473 77% MACHINERY/EQUIPMENT 11,000 33,408 (22,408) 304% 2 $ 10,527,420 $ 6,111,444 $ 6,479,161 $ 4,048,259 62% V C COMMUNITY S ERVIC ES /EC 0 N DEV. O C SALARIES $ 230,850 $ 150,641 $ 154,134 $ 76,716 67% jL BENEFITS 69,230 45,896 47,820 21,410 69% >, SUPPLIES 7,000 5,873 7,155 (155) 102% r SMALL EQUIPMENT 800 125 - 800 0% C PROFESSIONAL SERVICES 246,900 118,540 117,268 129,632 47% COMMUNICATIONS 1,490 684 717 773 48% TRAVEL 2,000 - 529 1,472 26% y 7 RENTAL/LEASE 10,960 1,299 6,383 4,577 58% REPAIR/MAINTENANCE 500 - - 500 0% Q MISCELLANEOUS 7,000 1,993 1,991 5,009 28% .. 0 $ 576,730 $ 325,051 $ 335,997 $ 240,734 58% O DEVELO PMENT SERVIC ES/PLANNING Q- d SALARIES $ 1,547,970 $ 960,745 $ 986,682 $ 561,288 64% W OVERTIME 1,300 6,116 6,881 (5,581) 529% R BENEFITS 568,060 351,661 359,516 208,544 63% C� UNIFORMS 500 - - 500 0% O SUPPLIES 16,100 9,054 7,938 8,162 49% E SMALL EQUIPMENT 6,000 4,782 4,874 1,126 81% LL PROFESSIONAL SERVICES 755,567 205,247 253,099 502,468 33% s COMMUNICATIONS 8,700 3,850 4,815 3,885 55% _ TRAVEL 4,750 4,027 4,208 542 89% O RENTAL/LEASE 147,580 13,501 98,069 49,511 66% 2 REPAIRS & MAINTENANCE 6,800 1,177 - 6,800 0% MISCELLANEOUS 54,060 28,871 17,535 36,525 32% MACHINERY/EQUIPMENT - 27,449 - - 0% Q $ 3,117387 $ L616A77 $ 1,743,617 $ 1,373,770 56% :.7 ENGINEERING C SALARIES $ 1,479,070 $ 845,206 $ 952,791 $ 526,279 64% d OVERTIME 5,000 3,290 104 4,896 2% V BENEFITS 572,030 335,184 395,183 176,847 69% M UNIFORMS 360 - - 360 0% Q SUPPLIES - 79 - - 0% SMALL EQUIPMENT 3,930 1,952 2,126 1,804 54% PROFESSIONAL SERVICES 231,080 404,811 23,898 207,182 10% COMMUNICATIONS 14,700 6,795 7,657 7,043 52% TRAVEL 600 296 39 561 7% RENTAL/LEASE 93,250 16,140 59,886 33,364 64% REPAIR/MAINTENANCE 2,600 - 587 2,013 23% MISCELLANEOUS 23,000 14,645 10,383 12,617 45% $ 2,425,620 $ 1,628,399 $ 1,452,654 $ 972,966 60% 15 Packet Pg. 386 I 8.3.a I Page 4 of 4 C TTY OF EDMO NDS EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN DETAIL 2017 Amended 8/31/2016 8/31/2017 Amount Title Budget Expenditures Expenditures Remaining %Spent PARKS & REC REATIO N SALARIES $ 2,003,255 $ 1,174,229 $ 1,262,798 $ 740,457 63% OVERTIME 10,000 9,594 16,448 (6,448) 164% BENEFITS 728,320 443,898 496,433 231,887 68% UNIFORMS 5,800 4,012 3,020 2,780 52% SUPPLIES 117,390 102,912 92,326 25,064 79% SMALL EQUIPMENT 3,250 6,998 12,330 (9,080) 379% PROFESSIONAL SERVICES 556,240 363,123 290,043 266,197 52% COMMUNICATIONS 29,920 17,199 11,157 18,763 37% TRAVEL 4,470 1,889 4,668 (198) 104% RENTAL/LEASE 283,560 132,341 192,019 91,541 68% PUBLIC UTILITY 175,000 118,157 112,313 62,687 64% REPAIR/MAINTENANCE 37,700 31,337 23,374 14,326 62% MISCELLANEOUS 92,610 42,383 50,232 42,378 54% MACHINERY/EQUIPMENT 47,000 - - 47,000 0% INTERGOVTL SERVICES 70,700 43,312 27,876 42,824 39% $ 4,165,215 $ 2,491385 $ 2,595,035 $ 1, 770.180 62% PUBLIC WORKS SALARIES $ 270,330 $ 174,522 $ 183,056 $ 87,274 68% OVERTIME 200 - - 200 0% BENEFITS 83,880 55,280 58,427 25,453 70% SUPPLIES 9,600 2,244 3,403 6,197 35% SMALL EQUIPMENT 1,000 108 - 1,000 0% PROFESSIONAL SERVICES 200 57 65 135 33% COMMUNICATIONS 1,350 432 436 914 32% TRAVEL 500 - - 500 0% RENTAL/LEASE 93,990 4,021 61,751 32,239 66% PUBLIC UTILITY 2,800 1,615 1,686 1,114 60% REPAIR/MAINTENANCE 1,000 522 - 1,000 0% MISCELLANEOUS 5,900 195 274 5,626 5% $ 470,750 $ 238,996 $ 309,099 $ 161,651 66% FACILITIES MAINTENANCE SALARIES 695,650 427,932 463,467 232,183 67% OVERTIME 7,500 3,633 6,775 725 90% BENEFITS 295,620 176,048 202,242 93,378 68% UNIFORMS 3,000 2,270 3,593 (593) 120% SUPPLIES 102,829 45,799 62,491 40,338 61% SMALL EQUIPMENT 3,000 1,631 528 2,472 18% PROFESSIONAL SERVICES 18,246 1,907 13,360 4,886 73% COMMUNICATIONS 16,000 10,089 11,044 4,956 69% TRAVEL 1,000 12 - 1,000 0% RENTAL/LEASE 64,360 35,667 40,255 24,105 63% PUBLIC UTILITY 280,000 176,581 191,021 88,979 68% REPAIR/MAINTENANCE 84,500 53,227 65,368 19,132 77% MISCELLANEOUS 5,000 4,791 2,549 2,451 51% BUILDINGS 18,323 18,323 0% $ 1,595,028 $ 939,588 $ 1,062,692 $ 532,336 67% TOTAL GENERAL FUND EXPENDITURES S 40,156,085 $ 28,202,529 $ 25,860,948 $ 14,295,137 64% a 16 Packet Pg. 387 I 8.3.a I City of Edmonds, WA Monthly Revenue Summary -General Fund 2017 General Fund Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 1,845,829 $ February 4,483,832 March 6,705,052 April 10,343,750 May 17,633,075 June 19,584,190 July 21,544,554 August 23,744,823 September 25,665,955 October 28,420,248 November 35,807,251 December 37,821,980 Real Estate Excise Tax 1 & 2 1,845,829 $ 2,222,449 20.40% 2,638,003 4,590,134 2.37% 2,221,220 7,111,840 6.07% 3,638,698 10,413,847 0.68% 7,289,326 18,087,809 2.58% 1,951,114 20,280,036 3.55% 1,960,364 22,295,216 3.48% 2,200,269 24,441,266 2.93% 1,921,132 2,754,293 7,387,003 2,014,729 City of Edmonds, WA Monthly Revenue Summary -Real Estate Excise Tax 2017 Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 207,208 $ February 377,258 March S61,933 April 738,924 May 921,191 June 1,156,829 July 1,491,329 August 1,747,148 September 1,998,654 October 2,216,068 November 2,456,999 December 2,600,000 207,208 $ 214,967 3.74% 170,050 425,156 12.70% 184,674 517,163 -7.97% 176,991 759,746 2.82% 182,267 1,057,416 14.79% 235,638 1,336,234 15.51% 334,500 1,651,931 10.77% 255,819 1,967,363 12.60% 251,505 217,414 240,931 143,001 *The monthly budget forecast columns are based on a five-year average. O SZ N R U C M C LL t a+ C O r to 7 Q O m U a M a LL 21 t r C O 2 r to 7 7 a �.i C d E t C� M a+ a 17 Packet Pg. 388 8.3.a Sales Tax Analysis By Category Current Period: August 2017 Year -to -Date Total $4,805,603 Health & Personal Care, Construction Trade, $153,669 Accommodation, $762,037 $27,392 Clothing and Accessories, $152,510 Communications, $148,028 Wholesale Trade, Zq $209,554 Misc Retail, $619,405 Total Retail Automotive Construction Trade Eating & Drinking Misc Retail Wholesale Trade Business Services Health & Personal Care Amusement & Recreation Clothing and Accessories Automotive Repair Others Retail Food Stores Gasoline Accommodation Manufacturing Communications( Others, $28,373 Automotive Repair, $118,636 Amusement & Recreation, $58,155 Business Services, $398,690 Gasoline, $23,025 Retail Food Stores, $179,949 Retail Automotive, $1,249,312 I Manufacturing, $64,419 Eating & Drinking, $612,449 Change in Sales Tax Revenue: August 2017 compared to August 2016 01 317 722 100 87 117 2,103 $3 ,323 $21,6 1 $15,39 $13,92 $8,889 $7,750 $4,333 $2,185 $1,549 610 ($1,102 $11,36 17,511 ($50,000) $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 18 Packet Pg. 389 I 8.3.a I City of Edmonds, WA Monthly Revenue Summary -Sales and Use Tax 2017 Sales and Use Tax Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 528,142 $ 528,142 $ 554,719 5.03% February 1,179,855 651,712 1,307,546 10.82% March 1,679,874 500,020 1,829,850 8.93% April 2,159,477 479,603 2,327,446 7.78% May 2,755,486 596,009 2,970,761 7.81% June 3,293,571 538,085 3,524,666 7.02% July 3,847,001 553,430 4,140,510 7.63% August 4,458,173 611,171 4,805,603 7.79% September 5,050,960 592,787 October 5,666,829 615,869 November 6,303,607 636,779 December 6,875,000 571,393 Gas Utility Tax Sales and Use Tax 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC +Current Year - Budget -vr- Prior Year City of Edmonds, WA Monthly Revenue Summary -Gas Utility Tax 2017 Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 86,887 $ 86,887 $ 93,550 7.67% February 183,529 96,642 203,652 10.96% March 260,361 76,832 294,027 12.93% April 328,823 68,462 372,490 13.28% May 381,147 52,324 429,203 12.61% June 416,950 35,802 475,324 14.00% July 446,516 29,566 504,267 12.93% August 469,952 23,437 528,405 12.44% September 491,313 21,360 October 515,645 24,332 November 552,451 36,806 December 608,000 55,549 Gas Utility Tax 700,000 600,000 500,000 400,000 - 300,000 200,000 100,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Year Budget t Prior Year *The monthly budget forecast columns are based on a five-year average. 19 Packet Pg. 390 I 8.3.a I City of Edmonds, WA Monthly Revenue Summary -Telephone Utility Tax 2017 Telephone Utility Tax Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance % January $ 114,426 $ 114,426 $ 105,424 -7.87% February 223,803 109,377 199,068 -11.05% March 330,274 106,471 290,145 -12.15% April 436,772 106,497 403,189 -7.69% May 549,330 112,558 492,059 -10.43% June 651,204 101,874 582,703 -10.52% July 754,077 102,873 650,709 -13.71% August 855,646 101,570 736,483 -13.93% September 961,054 105,407 October 1,062,454 101,400 November 1,159,179 96,725 December 1,263,200 104,021 Telephone Utility Tax 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Year -Budget -dr- Prior Year City of Edmonds, WA Monthly Revenue Summary -Electric Utility Tax 2017 13ectric Utility Tax Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 171,830 $ 171,830 $ 175,773 2.29% February 347,448 175,618 382,822 10.18% March 515,770 168,322 549,954 6.63% April 678,100 162,330 729,784 7.62% May 824,207 146,107 863,230 4.73% June 937,922 113,715 991,566 5.72% July 1,049,475 111,553 1,107,717 5.55% August 1,155,197 105,722 1,217,184 5.37% September 1,260,458 105,261 October 1,368,262 107,804 November 1,486,788 118,526 December 1,604,000 117,212 Electric Utility Tax 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -0 --- Current Year -Budget - Prior Year *The monthly budget forecast columns are based on a five-year average. 20 Packet Pg. 391 I 8.3.a I City of Edmonds, WA Monthly Revenue Summary -Meter Water Sales 2017 Meter Water Sales Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 573,159 $ 573,159 $ 599,648 4.62% February 966,145 392,986 1,027,975 6.40% March 1,529,375 563,229 1,658,808 8.46% April 1,906,725 377,350 2,057,951 7.93% May 2,464,794 558,070 2,660,519 7.94% June 2,900,426 435,631 3,101,835 6.94% July 3,585,922 685,496 3,777,591 5.35% August 4,167,341 581,419 4,420,673 6.08% September 4,962,652 795,311 October 5,517,073 554,421 November 6,167,530 650,457 December 6,572,750 405,220 City of Edmonds, WA Monthly Revenue Summary -Storm Water Sales 2017 Storm Water Sales Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 245,291 $ 245,291 $ 261,646 2.29% February 773,850 528,559 828,655 10.18% March 1,018,952 245,102 1,089,708 6.63% April 1,236,230 217,279 1,322,203 7.62% May 1,481,659 245,428 1,583,130 4.73% June 1,699,683 218,024 1,815,097 5.72% July 1,946,434 246,751 2,077,219 6.72% August 2,474,151 527,717 2,643,230 6.83% September 2,718,865 244,714 October 2,936,691 217,826 November 3,181,934 245,242 December 3,400,000 218,066 Storm Water Sales 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ---*—Current Year — Budget —0— Prior Year *The monthly budget forecast columns are based on a five-year average. 21 Packet Pg. 392 I 8.3.a I City of Edmonds, WA Monthly Revenue Summary-Unmeter Sewer Sales 2017 Unmeter Sewer Sales Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance January $ 572,309 $ 572,309 $ 623,336 8.92% February 1,034,805 462,496 1,135,356 9.72% March 1,603,135 568,330 1,767,521 10.25% April 2,067,863 464,728 2,277,537 10.14% May 2,638,929 571,065 2,905,981 10.12% June 3,109,116 470,187 3,422,308 10.07% July 3,696,739 587,623 4,070,136 10.10% August 4,167,756 471,017 4,584,464 10.00% September 4,763,468 595,712 October 5,237,994 474,526 November 5,818,870 580,876 December 6,291,410 472,540 a *The monthly budget forecast columns are based on a five-year average. 22 Packet Pg. 393 I 8.3.a I City of Edmonds, WA Monthly Expenditure Report -General Fund 2017 General Fund Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 4,419,173 $ 4,419,173 $ 4,856,792 9.90% February 7,057,584 2,638,410 7,118,110 0.86% March 10,173,720 3,116,136 11,124,815 9.35% April 14,032,115 3,858,395 13,496,549 -3.82% May 16,163,486 2,131,371 15,723,883 -2.72% June 19,855,567 3,692,081 19,674,034 -0.91% July 22,997,076 3,141,509 22,850,406 -0.64% August 26,928,937 3,931,861 25,860,948 -3.97% September 30,048,565 3,119,628 October 32,606,493 2,557,927 November 36,223,475 3,616,983 December 40,156,085 3,932,610 General Fund 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 p JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Yeaz Budget Prior Year City of Edmonds, WA Monthly Expenditure Report -Non -Departmental 2017 Non -Departmental Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 2,138,347 $ 2,138,347 $ 2,867,736 34.11% February 2,687,410 549,063 2,992,431 11.35% March 3,658,422 971,012 4,967,917 35.79% April 5,209,957 1,551,535 5,263,262 1.02% May 5,352,258 142,301 5,385,911 0.63% June 6,762,547 1,410,289 7,243,467 7.11% July 7,608,945 846,398 8,185,101 7.57% August 9,041,589 1,432,644 8,967,984 -0.81% September 9,941,241 899,652 October 10,330,183 388,942 November 11,407,769 1,077,586 December 12,665,445 1,257,676 Non -Departmental 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC +Current Year — Budget —d�- Prior Year *The monthly budget forecast columns are based on a five-year average. a 23 Packet Pg. 394 I 8.3.a I City of Edmonds, WA Monthly Expenditure Report -City Council 2017 City Council Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance January $ 24,382 $ 24,382 $ 22,742 -6.73% February 52,318 27,936 44,954 -14.07% March 83,798 31,480 70,026 -16.43% April 111,661 27,864 93,544 -16.23% May 142,110 30,449 118,441 -16.66% June 179,407 37,297 147,770 -17.63% July 211,248 31,841 172,790 -18.21% August 243,636 32,388 197,804 -18.81% September 280,710 37,075 October 307,316 26,606 November 340,142 32,826 December 376,120 35,978 City of Edmonds, WA Monthly Expenditure Report -Office of Mayor 2017 Office of Mayor Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 23,100 $ 23,100 $ 22,135 -4.18% February 46,663 23,563 46,116 -1.17% March 69,540 22,877 68,939 -0.87% April 92,124 22,584 91,090 -1.12% May 114,857 22,733 113,581 -1.11% June 137,580 22,723 135,664 -1.39% July 160,958 23,378 158,405 -1.59% August 184,229 23,271 182,492 -0.94% September 207,064 22,834 October 230,074 23,010 November 252,731 22,657 December 276,700 23,969 Office of Mayor 0,000.00 0,000.00 1 50,000.00 0.00 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Yeaz Budget --*- Prior Year *The monthly budget forecast columns are based on a five-year average. 24 Packet Pg. 395 I 8.3.a I City of Edmonds, WA Monthly Expenditure Report -Human Resources 2017 Human Resources Cumulative Budget Forecast Monthly Budget Forecast YTD Actuals Variance % January $ 33,336 $ 33,336 $ 35,109 5.32% February 71,046 37,709 63,054 -11.25% March 115,092 44,047 93,670 -18.61% April 148,861 33,769 122,632 -17.62% May 188,582 39,721 152,171 -19.31% June 226,982 38,400 177,689 -21.72% July 266,054 39,073 215,405 -19.04% August 302,670 36,616 245,681 -18.83% September 336,201 33,531 October 375,053 38,852 November 408,108 33,055 December 456,490 48,382 City of Edmonds, WA Monthly Expenditure Report -Municipal Court 2017 Municipal Court Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 74,527 $ 74,527 $ 76,438 2.56% February 157,040 82,513 170,699 8.70% March 242,535 85,495 249,970 3.07% April 321,521 78,987 330,859 2.90% May 402,116 80,595 407,638 1.37% June 482,636 80,519 488,007 1.11% July 564,050 81,414 563,868 -0.03% August 649,652 85,602 640,933 -1.34% September 733,470 83,818 October 821,328 87,857 November 906,841 85,513 December 994,140 87,299 Municipal Court 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 add rf=om 100,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Year Budget -d�- Prior Year *The monthly budget forecast columns are based on a five-year average. 25 Packet Pg. 396 I 8.3.a I City of Edmonds, WA Monthly Expenditure Report -Community Services/Economic Development 2017 Community Services/Economic Development Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 32,279 $ 32,279 $ 41,399 28.25% February 75,682 43,404 82,958 9.61% March 119,244 43,562 124,227 4.18% April 179,524 60,280 168,847 -5.95% May 220,780 41,257 213,705 -3.20% June 263,589 42,809 252,311 -4.28% July 310,443 46,854 292,103 -5.91% August 359,638 49,195 335,997 -6.57% September 408,107 48,469 October 456,589 48,482 November 509,519 52,930 December 576,730 67,211 City of Edmonds, WA Monthly Expenditure Report -City Clerk 2017 City Clerk Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 53,784 $ 53,784 $ 63,151 17.42% February 104,286 50,502 115,829 11.07% March 157,201 52,915 165,932 5.55% April 207,322 50,121 232,085 11.94% May 256,511 49,189 282,468 10.12% June 307,559 51,048 328,184 6.71% July 359,433 51,874 381,124 6.03% August 413,315 53,882 428,048 3.56% September 466,515 53,200 October 530,442 63,926 November 586,438 55,996 December 640,700 54,262 City Clerk 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Year - Budget -d�- Prior Year *The monthly budget forecast columns are based on a five-year average. O SZ N R U C M C LL t a+ C O r N 7 Q O m C M C LL t r C O r N 7 7 a �.i C d t t) a+ a 26 Packet Pg. 397 I 8.3.a I City of Edmonds, WA Monthly Expenditure Report -Technology Rental Fund 2017 Technology Rental Fund Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance % January $ 89,050 $ 89,050 $ 68,612 -22.95% February 177,771 88,721 177,236 -0.30% March 237,540 59,769 225,779 -4.95% April 291,722 54,182 277,784 -4.78% May 338,118 46,396 327,297 -3.20% June 387,726 49,608 373,016 -3.79% July 453,064 65,338 428,076 -5.52% August 528,249 75,186 483,955 -8.39% September 598,969 70,720 October 660,256 61,287 November 738,213 77,957 December 890,430 152,217 Finance Technology Rental Fnnd 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Year -Budget -or- Prior Year Prior Year amounts are from the Information Services Budget City of Edmonds, WA Monthly Expenditure Report -Finance 2017 Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance % January $ 102,207 $ 102,207 $ 122,581 19.93% February 189,948 87,740 199,380 4.97% March 271,844 81,896 281,459 3.54% April 361,256 89,412 364,229 0.82% May 442,527 81,271 453,448 2.47% June 522,997 80,470 543,908 4.00% July 603,839 80,842 629,442 4.24% August 687,233 83,394 709,795 3.28% September 781,183 93,949 October 871,230 90,048 November 956,025 84,794 December 1,049,560 93,535 Finance 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Year - Budget -d�- Prior Year *The monthly budget forecast columns are based on a five-year average. 27 Packet Pg. 398 I 8.3.a I City of Edmonds, WA Monthly Expenditure Report -City Attorney 2017 City Attorney Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance % January $ 68,232 $ 68,232 $ 44,346 -35.01% February 136,463 68,232 133,495 -2.18% March 204,695 68,232 199,483 -2.55% April 272,927 68,232 265,386 -2.76% May 341,158 68,232 331,290 -2.89% June 409,390 68,232 397,194 -2.98% July 477,621 68,232 441,539 -7.55% August 545,853 68,232 509,955 -6.58% September 614,085 68,232 October 682,316 68,232 November 750,548 68,232 December 818,780 68,232 Police City Attorney 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC t Current Yew - Budget -dr- Prior Yew City of Edmonds, WA Monthly Expenditure Report -Police 2017 Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance % January $ 829,943 $ 829,943 $ 780,892 -5.91% February 1,662,470 832,528 1,625,589 -2.22% March 2,505,809 843,339 2,399,391 -4.25% April 3,339,581 833,772 3,219,838 -3.59% May 4,168,368 828,787 4,002,270 -3.98% June 5,053,459 885,092 4,792,427 -5.17% July 5,891,147 837,688 5,702,618 -3.20% August 6,741,701 850,554 6,479,161 -3.89% September 7,584,219 842,517 October 8,462,646 878,427 November 9,638,182 1,175,536 December 10,527,420 889,238 Police 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 , 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Year Budget -9�- Prior Year *The monthly budget forecast columns are based on a five-year average. a 28 Packet Pg. 399 City of Edmonds, WA Monthly Expenditure Report -Development Services 2017 Development Services Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance % January $ 235,285 $ 235,285 $ 177,820 -24.42% February 480,958 245,673 416,189 -13.47% March 751,100 270,142 613,958 -18.26% April 991,519 240,419 831,603 -16.13% May 1,250,878 259,359 1,076,107 -13.97% June 1,497,579 246,701 1,291,724 -13.75% July 1,755,943 258,364 1,503,700 -14.37% August 2,029,313 273,370 1,743,617 -14.08% September 2,287,754 258,442 October 2,569,912 282,157 November 2,826,227 256,316 December 3,117,387 291,160 Parks & Recreation Development Services 3,000,000 2,750,000 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 1,250,000 1,000,000 750,000 500,000 250,00) 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Year -Budget -d�- Prior Year City of Edmonds, WA Monthly Expenditure Report -Parks & Recreation 2017 Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance % January $ 277,441 $ 277,441 $ 260,128 -6.24% February 565,997 288,557 525,411 -7.17% March 869,958 303,960 828,782 -4.73% April 1,177,654 307,697 1,110,332 -5.72% May 1,514,224 336,570 1,417,439 -6.39% June 1,848,590 334,366 1,763,105 -4.62% July 2,321,154 472,565 2,123,498 -8.52% August 2,830,512 509,358 2,595,035 -8.32% September 3,190,319 359,807 October 3,515,042 324,723 November 3,798,677 283,636 December 4,165,215 366,538 Parks & Recreation 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC t Current Year - Budget -IF- Prior Year *The monthly budget forecast columns are based on a five-year average. 29 Packet Pg. 400 I 8.3.a I City of Edmonds, WA Monthly Expenditure Report -Public Works 2017 Public Works Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance % January $ 38,606 $ 38,606 $ 37,599 -2.61% February 77,835 39,229 79,084 1.61% March 117,100 39,265 117,357 0.22% April 156,588 39,488 155,173 -0.90% May 196,390 39,802 193,212 -1.62% June 235,491 39,101 232,019 -1.47% July 275,204 39,712 270,583 -1.68% August 314,352 39,148 309,099 -1.67% September 352,464 38,113 October 393,232 40,768 November 429,298 36,066 December 470,750 41,452 Facilities Maintenance Public Works 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC t Current Year -Budget --A-Prior Year City of Edmonds, WA Monthly Expenditure Report -Facilities Maintenance 2017 Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance % January $ 127,054 $ 127,054 $ 128,273 0.96% February 257,275 130,221 264,009 2.62% March 393,296 136,021 404,318 2.80% April 523,097 129,801 528,660 1.06% May 653,776 130,679 672,777 2.91% June 769,798 116,022 792,861 3.00% July 920,705 150,908 933,921 1.44% August 1,041,207 120,502 1,062,692 2.06% September 1,179,252 138,045 October 1,302,136 122,884 November 1,442,204 140,068 December 1,595,028 152,824 *The monthly budget forecast columns are based on a five-year average. 30 Packet Pg. 401 I 8.3.a I City of Edmonds, WA Monthly Expenditure Report -Engineering 2017 Engineering Cumulative Budget Forecast Monthly Budget Forecast YTD Actuals Variance January $ 187,356 $ 187,356 $ 176,444 -5.82% February 371,085 183,729 358,913 -3.28% March 572,088 201,003 539,386 -5.72% April 775,732 203,644 719,010 -7.31% May 969,453 193,720 903,426 -6.81% June 1,175,007 205,555 1,087,704 -7.43% July 1,370,122 195,115 1,276,308 -6.85% August 1,581,505 211,383 1,452,654 -8.15% September 1,784,958 203,453 October 1,999,013 214,055 November 2,196,913 197,901 December 2,425,620 228,707 *The monthly budget forecast columns are based on a five-year average. 31 Packet Pg. 402 INVESTMENT PORTFOLIO SUMMARY I 8.3.a I City of Edmonds Investment Portfolio Detail As of August 31, 2017 Years Agency/ Investment Purchase to Par Market Maturity Coupon Issuer Tvoe Price Maturitv Value Value Date Rate FHLMC Bonds 1,000,000 0.33 1,000,000 999,250 12/28/17 0.90% FFCB Bonds 995,820 0.88 1,000,000 995,787 07/18/18 0.75% FFCB Bonds 2,010,790 1.33 2,000,000 1,999,638 12/28/18 1.42% FFCB Bonds 2,000,000 1.40 2,000,000 1,994,364 01/25/19 1.23% FICO Bonds 1,009,725 1.65 1,035,000 1,010,463 04/25/19 1.42% FNMA Bonds 999,750 1.78 1,000,000 998,715 06/13/19 1.40% FHLB Bonds 1,000,400 1.80 1,000,000 1,000,067 06/20/19 1.40% FHLMC Bonds 995,970 2.09 1,000,000 996,650 10/02/19 1.25% FNMA Bonds 1,994,310 2.16 2,000,000 1,990,674 10/28/19 1.35% FNMA Bonds 997,300 2.58 1,000,000 995,887 03/30/20 1.38% FHLB Bonds 2,003,780 2.58 2,000,000 1,988,958 03/30/20 1.45% FNMA Bonds 2,000,000 2.58 2,000,000 2,000,000 03/30/20 1.65% FHLMC Bonds 2,003,868 2.66 2,000,000 1,993,412 04/28/20 1.35% FNMA Bonds 1,000,000 2.83 1,000,000 985,141 06/30/20 1.38% FNMA Bonds 1,000,000 2.83 1,000,000 985,141 06/30/20 1.38% FHLB Bonds 3,000,000 2.87 3,000,000 2,965,389 07/13/20 1.20% RFCS Bonds 1,999,698 2.87 2,120,000 2,021,738 07/15/20 1.60% FHLB Bonds 2,000,000 2.92 2,000,000 2,001,388 07/30/20 1.75% FNMA Bonds 1,000,000 2.99 1,000,000 991,552 08/28/20 1.40% FNMA Bonds 1,000,000 2.99 1,000,000 991,552 08/28/20 1.40% FHLMC Bonds 999,500 3.33 1,000,000 1,000,009 12/30/20 1.75% FNMA Bonds 2,005,474 3.39 2,000,000 1,954,310 01/19/21 1.50% FM Bonds 2,000,000 3.59 2,000,000 1,998,576 04/01/21 1.87% FHLMC Bonds 999,400 4.33 1,000,000 1,000,033 12/30/21 2.00% TOTAL SECURITIES 36,015,786 2.4 36,155,000 35,858,694 Washington State Local Gov't Investment Pool 7,523,628 7,523,628 Demand 1.11% Snohomish County Local Gov't Investment Pool 16,766,774 16,766,774 Demand 1.13% TOTAL PORTFOLIO $ 60,445,402 $ 60,149,097 Issuer Diversification RFCS, 6% FHLMC, FNMA, 33% 17% FFCB, 14% FM, 6% FICO, 3% FHLB, 22% Cash and Investment Balances (in $ Millions) Checking, Ad$4.0 State LGIP, $7.5 Bonds, County $36.2 LGIP, $16.8 32 Packet Pg. 403 1 S.3.a I INVESTMENT PORTFOLIO SUMMARY Annual Interest Income $600,000 — $500,000 $423,816 $445,194 $400,000 $335,926 $300,000 $ 200,000 $163,214 $100,000 $57,334 74 830 $- 2012 2013 2015 2016 2017 Edmonds Rate of Return Compared to Benchmark (Rolling 12 months) 6 Month Treasury Rate (Benchmark) City Blended Rate 1.4 12% 1.g0 8.8). 810 ON). 8.2�1 Sep Oct Nov Dec Jan Feb March April May June JulyjAugust Maturity Distribution and Rate of Return $20,000,000 2.50% $15,000,000 2.00% 1.50% $10, 000,000 1.00% $ 5,000, 000 0.50% $- 0.00% 0-6 Mo 6-12 M o 12-18 M o 18-24 M o 24-30 M o 30-36 M o 36-42 M o 42-48 M o 48-54 M o 54-60 M o 33 I Packet Pg. 404 8.3.a GENERAL FUND OVERVIEW FUND BALANCES CHANGE IN FUND BALANCES GENERAL FUND & SUBFUNDS ---- ACTUAL ---- ---- ACTUAL ---- 12/31 /2016 6/30/2017 8/31 /2017 Q2 YTD 001-General Fund $ 9,841,719 $ 10,447,721 $ 8,422,037 $ 4,618,977 $ (1,419,68 009-Leoff-Medical Ins. Reserve 540,254 539,113 484,939 84,881 (55,31t 011-Risk Management Fund 963,026 891,891 894,559 4,964 (68,46- 012-Contingency Reserve Fund 5,367,841 5,408,995 5,420,859 29,729 53,01- 014-Historic Preservation Gift Fund 7,647 7,726 7,755 43 102 2 016-Building Maintenance 98,436 240,505 229,671 (11,639) 131,23! c Total General Fund & Subfunds $ 16,818,922 $ 17,535,951 $ 15,459,819 $ 4,726,955 $ (1,359,10, M 21 t c 0 r N 7 7 Q General Fund & Subfunds 0 20 Q' $16.82 $17.54 $15.46 16 v c c 12 u_ _ 1 o_ s 0 4 N a Dec2016 June 2017 Aug 2017 y E t v r r Q *Please note that these revenues and expenses occur within annual cycles. This Interim Report is not adjusted for accruals or those annual cycles. 34 Packet Pg. 405 I 8.3.a I GOVERNMENTAL FUNDS OVERVIEW CHANGE IN FUND FUND BALANCES BALANCES GOVERNMENTAL ---- ACTUAL ---- ---- ACTUAL ---- FUNDS 12/31 /2016 6/30/2017 8/31 /2017 Q2 YTD General Fund & Subfunds $ 16,818,922 $ 17,535,951 $ 15,459,819 $ 4,726,955 $ (1,359,10, Special Revenue 8,664,435 8,720,198 9,705,161 (475,692) 1,040,72E Debt Service 20,262 3,812 3,812 (16,450) (16,45( Total Governmental Funds $ 25,503,619 $ 26,259,960 $ 25,168,793 $ 4,234,813 $ (334,82( o a a� 76 U c c� c ii Governmental Fund Balances -By Fund Group Governmental Fund 2' 20 16 �12 0 8 21 Balances - Combined c 0 r 30 $17.54 $25.50 $26.26 Q $16.82 $25.17 $15.46 General 24 M Fund & m Subfunds W --0--Special 0 18 Revenue $9.71 ii 21 8.72 t 12 c Debt 0 Service N 6 — a� a $0.02 $0.00 $0.00 t Dec 2016 June 2017 Aug 2017 Dec 2016 June 2017 Aug 2017 r r Q *Please note that these revenues and expenses occur within annual cycles. This Interim Report is not adjusted for accruals or those annual cycles. 35 Packet Pg. 406 1 SPECIAL REVENUE FUNDS OVERVIEW I 8.3.a I GOVERNMENTAL SPECIAL REVENUE FUND BALANCES ---- ACTUAL ---- CHANGE IN FUND BALANCES ACTUAL 104 - Drug Enforcement Fund $ 34,632 $ 45,175 $ 17,425 $ (481) $ 111 -Street Fund 790,428 1,019,696 1,009,543 267,271 112- Combined Street Const/Improve 91,959 (847,858) (63,584) (1,164,569) 117 - Municipal Arts Acquis. Fund 493,080 504,784 491,616 4,099 118 - Memorial Street Tree 18,101 18,288 18,357 101 120 - Hotel/Motel Tax Revenue Fund 94,468 91,599 102,833 (12,418) 121 - Employee Parking Permit Fund 63,704 75,223 75,567 1,623 122 -Youth Scholarship Fund 14,931 14,873 14,526 85 123 -Tourism Promotional Fund/Arts 84,371 87,326 85,100 554 125 - Real Estate Tax 2,259,949 2,475,580 2,523,261 282,813 126 - Real Estate Excise Tax 1 1,977,485 2,652,104 2,816,676 404,308 127 - Gifts Catalog Fund 263,544 263,003 264,257 (24,026) 129 - Special Projects Fund 38,782 39,184 39,330 216 130 - Cemetery Maintenance/Improvement 142,339 189,250 185,427 27,192 132-Parks Construction Fund 1,185,146 935,231 968,092 (261,438) 136 - Parks Trust Fund 153,793 155,387 155,964 857 137 - Cemetery Maintenance Trust Fund 901,173 922,598 928,422 10,102 138 - Sister City Commission 6,415 8,457 9,335 281 140 -Business Improvement Disrict 50,137 70,294 63,014 (12,262) Total Special Revenue $ 8,664,435 $ 8,720,198 $ 9,705,161 $ (475,692) $ 15 12 c 9 0 6 3 $8.66 Dec 2016 Special Revenue Funds $9.71 $8.72 June 2017 Aug 2017 *Please note that these revenues and expenses occur within annual cycles. This Interim Report is not adjusted for accruals or those annual cycles. (17,207 219,115 (155,542 (1,464 256 8,366 11,863 o (404 2 729 263,312 839,191 712 LL 547 >+ 43,089 (217,053 0 2,171 27,249 2,920 12,877 Q 1,040,726 0 m v c c ii 21 t c 0 N a c m E t U 0 r r Q 36 Packet Pg. 407 8.3.a ENTERPRISE FUNDS OVERVIEW FUND BALANCES CHANGE IN FUND ENTERPRISE ---- ACTUAL ---- ---- ACTUAL ---- FUNDS 12/31/2016 6/30/2017 8/31/2017 Q2 YTD 421 -Water Utility Fund $ 17,869,639 $ 18,261,772 $ 18,076,160 $ (166,824) $ 206,52, 422 -Storm Utility Fund 10,246,573 10,561,621 10,979,052 (145,655) 732,48( 423 - Sewer/WWTP Utility Fund 42,695,395 42,858,543 42,917,384 (479,094) 221,98t 424 - Bond Reserve Fund 843,960 843,963 843,964 2 0 411 -Combined Utility Operation - 78,885 102,862 36,734 102,86. 0. Total Enterprise Funds $ 71,655,567 $ 72,604,784 $ 72,919,422 $ (754,837) $ 1,263,85! v c c� c ii 21 t c 0 r N 7 Enterprise and Agency Fund Balances as of August 31, 2017 7 a 1` 45,000,000 $42,917,384 0 40,000,000 d 35,000,000 R v c 30,000,000 c 25,000,000 u_ 21 20,000,000 15,000,000 c 0 10,000,000 AU N *510,979,052 5,000,000 $102,862 $843,964 $239,797 Q 0 Combined Utility Water Storm Sewer/WWTP Bond Reserve Firemen's Pension y Fund E t v r r Q *Please note that these revenues and expenses occur within annual cycles. This Interim Report is not adjusted for accruals or those annual cycles. 37 Packet Pg. 408 SUMMARY OVERVIEW I 8.3.a I CITY-WIDE Governmental Funds Enterprise Funds Internal Services Fund Agency Funds Total City-wide Total FUND BALANCES ---- ACTUAL ---- CHANGE IN FUND BALANCES ---- ACTUAL ---- $ 25,503,619 $ 26,259,960 $ 25,168,793 $ 4,234,813 $ 71,655,567 72,604,784 72,919,422 (754,837) 8,311,631 8,306,440 8,465,589 (43,767) 224,696 251,143 239,797 45,235 $105,695,513 $107,422,327 $106,793,601 $ 3,481,443 $ Governmental Fund Balances (Excluding General Fund) as of August 31, 2017 Drug Enforcement Fund $17,425 Street Fund r�� Combined Street Const/Improve Fund $(63,584) Municipal Arts Acquis. Fund $491,616 Memorial Street Fund $18 3357 Hotel/Motel Tax Revenue Fund $102,833 Employee Parking Permit Fund $75,567 Youth Scholarship Fund $14,526 Tourism Promotional Fund/Arts $85,100 Real Estate Excise Tax 2 Real Estate Excise Tax 1, Parks Acq Gifts Catalog Fund $26 ,257 Special Projects Fund $39,330 Cemetery Maintenance/Improvement $185,4 7 Parks Construction Fund Parks Trust Fund $155,9 4 Cemetery Maintenance Trust Fund Sister City Commission $9,335 Business I mprovement Di stri ct $63,014 L.I.D. Fund Control $3,812 $1,009,543 $968,092 928,422 $2,523,26 816,676 (334,82( 1,263,85! 153,954 15,10' 1,098,M o a a� U c M Ic L z r c O r to 7 7 Q 1` O Q d cv v c M 1 � IL t c O 7 7 Q r C d E t 2 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 *Please note that these revenues and expenses occur within annual cycles. This Interim Report is not adjusted for accruals or those annual cycles. a 38 Packet Pg. 409 INTERNAL SERVICE FUNDS OVERVIEW I 8.3.a I INTERNAL SERVICE FUNDS 511 - Equipment Rental Fund 512 -Technology Rental Fund Total Internal Service Funds 10,000,000 8,000,000 6,000, 000 4,000, 000 2,000, 000 FUND BALANCES ---- ACTUAL ---- 12/31 /2016 6/30/2017 8/31 /2017 $ 8,311,631 $ 8,181,060 $ 8,300,526 $ - 125,380 165,063 $ 8,311,631 $ 8,306,440 $ 8,465,589 1 $ Internal Service Fund Balances $8,311,631 $8,181,060 $8,300,526 Dec 2016 June 2017 Aug 2017 CHANGE IN FUND BALANCES ---- ACTUAL ---- Q2 YTD (122,170) $ (11,10! 0 78,402 a� 165,06: 2 (43,767) $ 153,951 U_ c� c ii 21 t c 0 r N 7 0 Q 0 m v c c ■ 511- Equipment Rental Fund ii 21 ■ 512-Technology Rental Fund M *Please note that these revenues and expenses occur within annual cycles. This Interim Report is not adjusted for accruals or those annual cycles. c 0 N Gl r Q 39 Packet Pg. 410 8.4 City Council Agenda Item Meeting Date: 10/10/2017 Third Quarter 2017 Budget Amendment (10 min.) Staff Lead: Scott James Department: Administrative Services Preparer: Debra Sharp Background/History Amend the 2017 Budget Ordinance No. 4075 Staff Recommendation Staff recommends that Council forward the Third Quarter 2017 Budget Amendment to Consent for Approval of Ordinance No. XXXX amending the 2017 Budget. Narrative There are a total of 12 budget amendments. Eleven of the budget amendments are new items for Council to consider. Three of the budget amendments reduce the General Fund ending fund balance. They include additional budget for the Court, a DRS contribution payment for interim Finance Director J. Tarte, and the Fire District One settlement contract. Two General Fund budget amendments have no effect on ending fund balance. They include moving the salary savings for the Council Executive Assistant to professional services for the Edmonds Marsh study and transferring the waterfront connector budget from the General Fund to the Street Construction Fund. Six of the budget amendments are for capital projects. They include Citywide Pedestrian Enhancements, the Veterans Plaza, the Downtown Restroom (2), vehicle propane conversions and the 2017 Waterline Replacement program. The final amendment is for the purchase of Cemetery Software. Attachments: 2017 Third Quarter Budget Amendment Ordinance Packet Pg. 411 8.4.a ORDINANCE NO. AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING ORDINANCE NO. 4075 AS A RESULT OF UNANTICIPATED TRANSFERS AND EXPENDITURES OF VARIOUS FUNDS, 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 2017 Budget; and THEREFORE, WHEREAS, the applications of funds have been identified; THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Section 1. of Ordinance No. 4075 adopting the final budget for the fiscal year 2017 is hereby amended to reflect the changes shown in Exhibits A, B, C, D, E, and F adopted herein by reference. Section 2. 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 I Packet Pg. 412 8.4.a effect five (5) days after passage and publication of an approved summary thereof consisting of the title. ATTEST/AUTHENTICATE: CITY CLERK, SCOTT PASSEY APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: M. JEFF TARADAY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. APPROVED: MAYOR, DAVE EARLING 2 Packet Pg. 413 8.4.a SUMMARY OF ORDINANCE NO. of the City of Edmonds, Washington On the day of , 2017, 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, WASHINGTON9 AMENDING ORDINANCE NO. 4075 AS A RESULT OF UNANTICIPATED TRANSFERS AND EXPENDITURES OF VARIOUS FUNDS, 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 , 2017. CITY CLERK, SCOTT PASSEY 3 Packet Pg. 414 EXHIBIT "A": Budget Amendment Summary (October 2017) 8.4.a FUND NO. FUND DESCRIPTION 2017 BEGINNING FUND BALANCE REVENUE EXPENDITURES 2017 ENDING FUND BALANCE 001 GENERAL FUND 9,841,720 37,821,980 40,383,385 7,280,315 009 LEOFF-MEDI CAL INS. RESERVE 540,250 278,630 293,460 525,420 011 RISK MANAGEMENT RESERVE FUND 963,030 6,800 100,000 869,830 012 CONTINGENCY RESERVE FUND 5,367,840 44,650 - 5,412,490 014 HISTORIC PRESERVATION GIFT FUND 7,650 5,030 5,400 7,280 016 BUILDING MAINTENANCE 98,440 452,000 545,500 4,940 104 DRUG ENFORCEMENT FUND 34,630 130,000 76,030 88,600 111 STREET FUND 790,430 1,851,750 2,002,810 639,370 112 COMBINED STREET CONST/I MP ROVE 91,960 6,793,277 6,672,677 212,560 117 MUNICIPAL ARTS ACQUIS. FUND 493,080 140,200 181,880 451,400 118 MEMORIAL STREETTREE 18,100 110 - 18,210 120 HOTEL/MOTEL TAX REVENUE FUND 94,470 91,200 104,100 81,570 121 EMPLOYEE PARKING PERMIT FUND 63,700 24,600 26,880 61,420 122 YOUTH SCHOLARSHIP FUND 14,930 1,800 2,000 14,730 123 TOURISM PROMOTIONAL FUND/ARTS 84,370 30,450 61,700 53,120 125 PARK ACQ/IMPROVEMENT 2,259,950 1,311,900 3,106,566 465,284 126 SPECIAL CAPITAL FUND 1,977,480 1,314,400 2,650,058 641,822 127 GIFTS CATALOG FUND 263,550 50,390 51,220 262,720 129 SPECIAL PROJECTS FUND 38,780 280 - 39,060 130 CEMETERY MAINTENANCE/IMPROV 142,340 177,820 234,520 85,640 132 PARKS CONSTRUCTION 1,185,150 2,616,940 2,719,363 1,082,727 136 PARKSTRUSTFUND 153,790 1,070 - 154,860 137 CEMETERY MAINTENANCE TRUSTFD 901,170 22,880 - 924,050 138 SISTER CITY COMMISSION 6,410 10,010 10,500 5,920 211 LID FUND CONTROL 20,260 14,400 16,450 18,210 231 2012 LTGO DEBT SERVICE FUND - 695,830 695,830 - 421 WATER 17,869,640 8,469,570 13,173,652 13,165,558 422 STORM 10,246,580 4,789,173 8,296,711 6,739,042 423 SEWER/TREATMENT PLANT 42,695,400 12,179,879 16,916,688 37,958,591 424 BOND RESERVE FUND 843,960 1,988,720 1,989,720 842,960 511 EQUIPMENT RENTAL FUND 8,311,630 1,628,910 1,958,000 7,982,540 512 Technology Rental Fund - 946,040 890,430 55,610 617 FIREMEN'S PENSION FUND 224,700 66,000 72,070 218,630 DI Totals 1 105,645,390 83,956,689 103,237,600 86,364,479 r Q Packet Pg. 415 8.4.a EXHIBIT "B": Budget Amendments by Revenue (October 2017) FUND NO. FUND DESCRIPTION ORD. NO. 4054 12/6/2016 ORD. NO. 4063 3/31/2017 ORD. NO. 4075 7/28/2017 ORD. NO. 10/2017 2017 Amended Budget 001 General Fund $ 37,753,480 $ $ 68,500 $ $ 37,821,980 009 Leoff-Medical Ins. Reserve 278,630 - 278,630 011 Risk Management Reserve Fund 6,800 6,800 012 Contingency Reserve Fund 44,650 44,650 014 Historic Preservation Gift Fund 5,030 5,030 016 Building Maintenance 452,000 452,000 104 Drug Enforcement Fund 130,000 - 130,000 111 Street Fund 1,784,200 67,550 1,851,750 112 Combined Street Const/Improve 5,933,570 464,362 - 395,345 6,793,277 117 Municipal Arts Acquis. Fund 137,200 - 3,000 140,200 118 Memorial Street Tree 110 - 110 120 Hotel/Motel Tax Revenue Fund 91,200 91,200 121 Employee Parking Permit Fund 24,600 24,600 122 Youth Scholarship Fund 1,800 1,800 123 Tourism Promotional Fund/Arts 30,450 30,450 125 ParkAcq/Improvement 1,311,900 1,311,900 126 Special Capital Fund 1,314,400 1,314,400 127 Gifts Catalog Fund 50,390 50,390 129 Special Projects Fund 280 280 130 Cemetery Maintenance/Improv 177,820 177,820 132 Parks Construction 2,616,940 2,616,940 136 Parks Trust Fund 1,070 1,070 137 Cemetery Maintenance Trust I'd 22,880 22,880 138 Sister City Commission 10,010 10,010 211 Lid Fund Control 14,400 14,400 231 2012 LTGO Debt Service fund 695,830 695,830 421 Water 8,469,570 - 8,469,570 422 Storm 4,770,970 18,203 4,789,173 423 Sewer/Treatment Plant 11,663,700 516,179 12,179,879 424 Bond Reserve Fund 1,988,700 - 20 1,988,720 511 Equipment Rental Fund 1,628,910 - 1,628,910 512 Technology Rental Fund 946,040 946,040 617 Firemen's Pension Fund 66,000 - - 66,000 Totals $82,423,530 $ 998,744 $ 136,070 $ 398,345 $ 83,956,689 r Q Packet Pg. 416 8.4.a EXHIBIT "C": Budget Amendments by Expenditure (October 2017) FUND NO. FUND DESCRIPTION ORD. NO. 4054 12/6/2016 ORD. NO. 4063 3/31/2017 ORD. NO. 4075 7/28/2017 ORD. NO. 0 10/2017 2017 Amended Budget 001 General Fund $ 39,793,700 $ 275,355 $ 87,030 $ 227,300 $ 40,383,385 009 Leoff-MedlcalIns. Reserve 293,460 - - - 293,460 011 Risk Management Reserve Fund - 100,000 100,000 012 Contingency Reserve Fund - - - 014 Historic Preservation Gift Fund 5,400 - 5,400 016 Building Maintenance 482,000 63,500 545,500 104 Drug Enforcement Fund 76,030 - - 76,030 111 Street Fund 1,922,760 12,500 67,550 - 2,002,810 112 Combined Street Const/Improve 5,962,970 464,362 - 245,345 6,672,677 117 Municipal Arts Acquis. Fund 181,880 - - - 181,880 120 Hotel/Motel Tax Revenue Fund 89,700 9,900 4,500 104,100 121 Employee Parking Permit Fund 26,880 - - 26,880 122 Youth Scholarship Fund 2,000 - 2,000 123 Tourism Promotional Fund/Arts 34,700 27,000 - - 61,700 125 ParkAcq/Improvement 2,476,000 486,566 103,000 41,000 3,106,566 126 Special Capital Fund 2,180,310 214,711 16,400 238,637 2,650,058 127 Gifts Catalog Fund 51,220 - - - 51,220 130 Cemetery Maintenance/Improv 217,020 - 17,500 234,520 132 Parks Construction 2,935,000 20,000 (235,637) 2,719,363 138 Sister City Commission 10,500 - 10,500 211 Lid Fund Control 16,450 16,450 231 2012LTGO Debt Service Fund 695,830 - 695,830 421 Water 12,745,260 512,192 (83,800) - 13,173,652 422 Storm 7,495,330 856,217 (114,640) 59,804 8,296,711 423 Sewer/Treatment Pla nt 14,995,780 1,719,048 201,860 - 16,916,688 424 Bond Reserve Fund 1,989,720 20 (20) - 1,989,720 511 Equipment Rental Fund 1,873,000 13,000 - 72,000 1,958,000 S12 Technology Rental Fund 890,430 - - 890,430 617 Firemen's Pension Fund 72,070 - - - 72,070 Totals $ 97,515,400 1 $ 4,774,371 1 $ 281,880 1 $ 665,949 1 $ 103,237,600 r Q Packet Pg. 417 EXHIBIT "D": Budget Amendment Summary (October 2017) 8.4.a Fund Number Change in Beginning Fund Balance Revenue Expense Change in Ending Fund Balance 001 - 227,300 (227,300) 112 395,345 245,345 150,000 117 3,000 - 3,000 12S - 41,000 (41,000) 126 238,637 (238,637) 130 17,500 (17,500) 132 (235,637) 235,637 422 59,804 (59,804) 511 72,000 1 (72,000) Total Change 398,345 665,949 1 (267,604) r Q Packet Pg. 418 8.4.a EXHIBIT "E": New Items for Council to Consider (October 2017) Budget Amendment for: Third Quarter Item Description: The City Council working in conjunction with the Administration to put out a request for proposal for "A Site -Specific, Planning -Level Scientific Study of the Edmonds Marsh". Proposal have been received and the proposal amounts are in excess of the Council Contingency Fund. The Council President in conjunction with the Human Resource Manager did not extend the contract of the Council's Administration Assistant/Legislative Assistant. Funds saved from his salary are reqeusted to be used for professional services. Council Division: I Title: I Offs et S alary to Profes s ional Services I Preparers IDiane Buckshnis/Deb Sharp Department Account Number: Budget Amendment Type? New Item For Council To Consider If previously discussed, date(s) of discussion: Discussed at Finance Committee 9/12/17 What is the nature of the expenditure? I One -Time Is the Expenditure Operating or Capital? I Operating Fund I GENERALName: Fill InItem Description[s] Baseline Budget 2017 2018 2019 2020 2021 Sr Executive Asst Salaries 001.000.11.511.60.11.10 65,770 (10,000) 0 0 0 C Benefits 001.000.11.511.60.23.00 108,520 (10,000) 0 0 0 C Professional Services 001.000.1 ].511.60.41.00 62,160 20,000 0 0 0 C 0 0 0 0 0 C 0 1 0 1 01 01 0 1C 0 1 01 01 01 0 1C Sub -Total 1 $236,450 1 $0 I $0 I $0 I $0 1 $0 Total Expenses 1 $236,450 1 $0 1 $0 1 $0 1 $0 Revenue and Ending Cash Comments 2017 2018 2019 2020 2021 Ending Cash: Decrease Increase 0 0 0 0 C Ending Cash: Decrease (Increase) 0 0 0 0 C Grants/Contributions 0 0 0 0 C General Fund Subsidy 0 0 0 0 C New Revenue 0 0 0 0 C Other 0 0 0 0 C Total Revenue and Fnding Cash $0 $0 $0 $0 $0 0 Packet Pg. 419 EXHIBIT "E": New Items for Council to Consider (October 2017) 8.4.a Budget Amendment for: Third Quarter Item Description: Supplies: There was a delay in purchasing the required printed forms as the prior Court Administrator anticipated the Court being paperless in 2017. Professional Services: There has been an increase in Jury Trials and Motions as well as the MRT-DV class for probationers which increased Court security hours. Professional Services Interpreter: Statutory requirement to provide interpreters for limited English speaking people. Communications: Increased passport processing has caused more mailings to the passport office. Rental/Uase: After the 2017 Budget was submitted to the City, the Court leased a new copy machine. The increase in the Rental/lease fees were not reflected in the 2017 Budget. Miscellaneous Jury: There has been an increase in Jury Trials. The Court should be saving over $25,000 in salaries from the 2017 budgeted amount due to a change in Court Administration. Department: Municipal Court Fund Division: Municipal Court Title: Request for Additional Operating Monies Name: Preparer: Sharon Whittaker Department Account Number: 001.000.23.512.50 Budget Amendment Type? New Item For Council To Consider If previously discussed, date(s) of discussion: What is the nature of the expenditure? I One -Time Is the Expenditure Operating or Capital? I Operating Fill In Item Des cri 'on s I Baseline Budget 2017 2018 2019 2020 2021 Supplies 1,500 2,500 0 0 0 0 Professional Services 45,000 16,000 0 0 0 0 Professional Services Interpreter 20,000 1,000 0 0 0 0 Communications 21000 600 01 0 0 0 Rental Lease 400 500 0 0 0 0 Misc Jury 1,100 1,300 0 0 0 0 Sub -Total $70,000 $21,900 $0 $0 $0 $0 Total lapenses $91,900 $0 $0 $0 $0 Revenue and Ending Cash Comments 2017 2018 2019 2020 2021 Ending Cash: Decrease Increase 001.000.39.508 21,900 0 0 0 0 Ending Cash: Decrease Increase 0 0 0 0 0 Grants/Contributions 0 0 0 0 0 General Fund Subsidy 0 0 0 0 0 New Revenue 0 0 0 0 0 Other I 1 0 1 01 0 1 0 10 Total Revenue and Endin Cash 1 1 $21,900 1 $0 I $0 I $0 1 $0 0j Packet Pg. 420 8.4.a EXHIBIT "E": New Items for Council to Consider (October 2017) Budget Amendment for: Third Quarter Item Description: Department of Retirement Systems invoice for James Tarte PERS contributions from 2014 c m E c m E Department: Finance Fund GENERAL Q r Division: Finance Title: Title: DRS Contributions Invoice Name: 3 m Preparer: Scott James ti Department Account Number: 001.000.31.514.20.23.03 N L L Budget Amendment Type? New Item For Council To Consider CY If previously discussed, date(s) of discussion: What is the nature of the expenditure? I One -Time Is the Expenditure Operating or Capital? I Operating Fill InItem Description[s] Baseline Budget 2017 2018 2019 2020 2021 001.000.31.514.20.23.03 0 12,010 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub -Total $0 $12,010 $0 $0 $0 $0 Total Expenses 1 $12,010 1 $0 I $0 I $0 1 $0 Revenue and Ending Cash Comments 2017 2018 2019 2020 2021 Ending Cash: Decrease Increase 001.000.39.508.00.00.00 12,010 0 0 0 0 Ending Cash: Decrease (Increase) 0 0 0 0 0 Grants/Contributions 0 0 0 0 0 General Fund Subsidy 0 0 0 0 0 New Revenue 0 0 0 0 0 Other 0 0 0 0 0 Total Revenue and Ending Cash $12,010 $0 $0 $0 $0 10 Packet Pg. 421 8.4.a EXHIBIT "E": New Items for Council to Consider (October 2017) Budget Amendment for: Third Quarter Item Description: Fire District 1 settled their labor contract covering 2015, 2016 & 2017, and M retroactively billed Edmonds for $664,946 for the City's share of the labor costs. With the new labor agreement, the City's costs for Fire and EMS serivices will tots_ $7,906,390 for 2017. Currently, there is $7,713,000 in the City's Budget for FDI. We need additional budget of $193,390 to pay FD1 for 2017 services. Division: I Non -Departmental Title: I Fire District 1 Retroactive Invoice Scott James Department Account Number: 1001.000.39.522.20.51.00 Budget Amendment Type? I New Item For Council To Consider If previously discussed, date(s) of discussion: What is the nature of the expenditure? I One -Time Is the Expenditure Operating or Capital? I Operating Fund I GINERAL Name: Fill InItem Description[s] Baseline Budget 2017 2018 2019 2020 2021 001.000.39.522.20.51.00 7,713,000 193,390 0 0 0 i 0 0 0 0 0 i 0 0 0 0 0 i 0 0 0 0 0 i 0 0 0 0 0 i 0 1 0 1 0 1 01 0 1i Sub -Total $7,713,000 1 $193,390 1 $0 I $0 I $0 1 $1 Total Espenses $7,906,390 $0 $0 $o $1 Revenue and Ending Cash Comments 2017 2018 2019 2020 2021 Ending Cash: Decrease (Increase) 001.000.39.508.00.00.00 193,390 0 0 0 1 Ending Cash: Decrease (Increase) 0 0 0 0 1 Grants/Contributions 0 0 0 0 1 General Fund Subsidy 0 0 0 0 1 New Revenue 0 0 0 0 1 Other 0 0 0 0 1 Total Revenue andFndin Cash $193,390 $0 $0 $0 $1 11 Packet Pg. 422 8.4.a EXHIBIT "E": New Items for Council to Consider (October 2017) Budget Amendment for: Third Quarter Item Description: This budget amendment will program expenditures and funding in 2017 for the preliminary design and environmental documents for the Edmonds St. Waterfront Connector. The City secured $700,000 from the State Legislature and $140,000 from other agencies to fund the next phase of work. In addition to the $150,000 in the 2017 Budget, a carryforward budget amendment of $33,000 was approved in early 2017 that increased the City's budget from $150,000 to $183,000. The $183,000 will be transferred from the General Fund to the Street Construction Fund (Fund 112) to fund the project. Public Works Division: JEngineering Title: I Edmonds Street Waterfront Connector Rob EnLylis h Account Number: Budget Amendment Type? If previously discussed, date(s) of discussion What is the nature of the expenditure? Is the Expenditure Operating or Capital? New Item For Council To Consider One -Time Capital Fund I STREET Name: CONSTRUCTION Fill InItem Des cri ion[s] Baseline Budget 2017 2018 2019 2020 2021 Professional Services 112.000.68.595.33.41.00 0 150,133 0 0 0 0 Interfund Services 112.000.68.595.33.41.67 0 24,867 0 0 0 0 Professional Services 001.000.67.518.21.41.00 183,000 183,000 0 0 0 0 Interfund Transfer 001.000.39.597.42.55.12 0 183,000 0 0 0 0 0 0 0 0 0 0 Sub -Total 1 $183,000 $175,000 $0 $0 $0 $0 Total Expenses 1 $358,000 1 $0 I $0 I $0 1 $0 Revenue and Ending Cash Comments 2017 2018 2019 2020 2021 Ending Cash: Decrease Increase 112.000.39.508.30 150,000 0 0 0 0 Ending Cash: Decrease (Increase) 0 0 0 0 Grants/Contributions 112.000.334.00.000.00 142,000 0 0 0 0 General Fund Subsidy 112.000.397.95.001.00 183,000 0 0 0 0 New Revenue 0 0 0 0 0 Other 0 0 0 0 0 Total Revenue and Ending Cash $175,000 $0 $0 $o $0 12 Packet Pg. 423 8.4.a EXHIBIT "E": New Items for Council to Consider (October 2017) Budget Amendment for: Third Quarter Item Description: This budget amendnment will program expenditures and funding in 2017 for the Citywide Pedestrian Crossing Enhancements Project. The City was awarded a $1.49M grant from WSDOT to improve pedestrian and bicycle safety at several locations in Edmonds. Division: Title: Department Account Number: Budget Amendment Type? m E c m E Public Works Q r Engineering Fund STREET aD Rob If previously discussed, date(s) of discussion What is the nature of the expenditure? Is the Expenditure Operating or Capital? Pedestrian Crossing Enhancements Name: CONSTRUCTION m ish ti 0 N L L New Item For Council To Consider CI L r One -Time U c c� c Capital Fill InItem Description[s] Baseline Budget 2017 2018 2019 2020 2021 Professional Services 112.000.68.595.33.41.00 0 60,000 0 0 0 0 Inter and Services 112.000.68.595.33.41.67 0 10,345 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub -Total $0 $70,345 $0 $0 $0 $0 Total Expenses 1 $70,345 1 $0 I $0 I $0 1 $0 Revenue and Ending Cash Comments 2017 2018 2019 2020 2021 Ending Cash: Decrease Increase 0 0 0 0 0 Ending Cash: Decrease (Increase) 0 0 0 0 0 Grants/Contributions 112.000.333.10.000.00 70,345 0 0 0 0 General Fund Subsidy 0 0 0 0 0 New Revenue 0 0 0 0 0 Other 0 0 0 0 0 Total Revenue and Ending Cash $70,345 $0 $0 $0 $0 13 Packet Pg. 424 8.4.a EXHIBIT "E": New Items for Council to Consider (October 2017) Budget Amendment for: Third Quarter Item Description: This is a request for funding for software to manage the Cemetery plots, sales, burials, create an online presence and search funcationality, and utilize the information generated by the WWU sustainability project. We have alot of up to date data, that needs to be managed sooner rather than later so it isn't outdated. This will create an efficient, user friendly database c complete with a web interface. $17,500 is the one-time expense for the purchase of software m E and there will be an ongoing expense of $2,000 for yearly maintenance costs. m E Q Department: Parks, Recreation & Cultural Services Fund CFNWYMY MAINTENANCF/ m Division: Administration Title: Cemetery Software Name: IIVWROVEMINT Preparer: Ccruz for Carrie Bite N Department Account Number: 130.000.64.536.50.31.00 L +; L Budget Amendment Type? New Item For Council To Consider CY L If previously discussed, date(s) of discussion: What is the nature of the expenditure? I On -Going Is the Expenditure Operating or Capital? I Operating Fill In Item Description[s] Baseline Budget 2017 2018 2019 2020 2021 Software 0 17,500 2,000 2,000 2,000 2,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub -Total $0 $17,500 $2,000 $2,000 $2,000 1 $2,000 Total Expenses 1 $17,500 1 $2,000 1 $2,000 1 $2,000 1 $2,000 Revenue and Ending Cash Comments 2017 2018 2019 2020 2021 Ending Cash: Decrease Increase 130.000.64.508.40 17,500 2,000 2,000 2,000 2,000 Ending Cash: Decrease Increase 0 0 0 0 0 Grants/Contributions 0 0 0 0 0 General Fund Subsidy 0 0 0 0 0 New Revenue 0 0 0 0 0 Other 0 0 0 0 0 Total Revenue and Ending Cash $17,500 $2,000 $2,000 $2,000 $2,000 14 Packet Pg. 425 8.4.a EXHIBIT "E": New Items for Council to Consider (October 2017) Budget Amendment for: Third Quarter Item Description: This is a request for additional funding for Veterans Plaza for additional electrical, vault, and engineering services. This was approved at the Council meeting on September 19, 2017. c m E c m E Department: Parks, Recreation & Cultural Services Fund Name: Q r tM REST 2 m Division: Parks Title: Veterans Plaza Preparer: Ccruz for Carrie Hite ti Department Account Number: 125.000.64.594.75.65.00 N L Budget Amendment Type? Previously Discussed By Council L CY lfpreviously discussed, date(s) ofdiscussion: Sep19 2017 L What is the nature of the expenditure? I One -Time Is the Expenditure Operating or Capital? I Operating Fill InItem Description[s] Baseline Budget 2017 2018 2019 2020 2021 Projects 0 41,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub -Total $0 $41,000 $0 $0 $0 $0 Total Expenses 1 $41,000 1 $0 I $0 I $0 1 $0 Revenue and Ending Cash Comments 2017 2018 2019 2020 2021 Ending Cash: Decrease Increase 125.000.64.508.30 41,000 0 0 0 0 Ending Cash: Decrease (Increase) 0 0 0 0 0 Grants/Contributions 0 0 0 0 0 General Fund Subsidy 0 0 0 0 0 New Revenue 0 0 0 0 0 Other 0 0 0 0 0 Total Revenue and Fnding Cash $41,000 $0 $0 $0 $0 15 7 a Packet Pg. 426 EXHIBIT "E": New Items for Council to Consider (October 2017) 8.4.a Budget Amendment for: Third Quarter Item Description: Division: Title: Department Account Number: Budget Amendment Type? Transfer of the 1% for art allocation for the original approved budgeted expenditure for the downtown public restroom project to the Municipal Arts public art Fund 117-200. c m E c m E Public Works Q r Facilites Maintenance Fund PARKS aD 1% for art transfer for restroom Name: CONSTRUCTION Thom Sulliva If previously discussed, date(s) of discussion What is the nature of the expenditure? Is the Expenditure Operating or Capital? n m ti 0 N L L New Item For Council To Consider CI L r One -Time U c c� c Capital Fill InItem Description[s] Baseline Budget 2017 2018 2019 2020 2021 132.000.64.597.73.55.17 0 3,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub -Total $0 $3,000 $0 $0 $0 $0 Total Expenses 1 $3,000 1 $0 I $0 I $0 1 $0 Revenue and Ending Cash Comments 2017 2018 2019 2020 2021 Ending Cash: Decrease Increase 132.000.64.508.30.00.00 3,000 0 0 0 0 Ending Cash: Decrease (Increase) 117.200.64.508.40.00.00 (3,000) 0 0 0 0 Grants/Contributions 0 0 0 0 0 General Fund Subsidy 0 0 0 0 0 New Revenue 117.200.397.73.132.00 3,000 0 0 0 0 Other 0 0 0 0 0 Total Revenue and Fnding Cash $3,000 $0 $0 $0 $0 16 Packet Pg. 427 8.4.a EXHIBIT "E": New Items for Council to Consider (October 2017) Budget Amendment for: Third Quarter Item Description: During 2016, Council approved the construction of the Downtown Public Restroom. $238,637 of the project expense was to be paid by REET fund 126. This budget request will transfer the $238,637 from REET Fund 126 to the Parks Construction Fund 132. m E c m E Department: Economic Development/Community Services Q r Division: Economic Development Fund aM GENERAL � Title: Downtown Restroom Name: m Preparer: Scott James ti Department Account Number: 126.000.68.595.33.65.90 N L L Budget Amendment Type? New Item For Council To Consider CY If previously discussed, date(s) of discussion: 2016 Budget development, Apr 19 2016 & Aug 23 2016 L r What is the nature of the expenditure? One -Time U Is the Expenditure Operating or Capital? I Operating Fill InItem Description[s] Baseline Budget 2017 2018 2019 2020 2021 126.000.68.595.33.65.90 0 238,637 0 0 0 0 132.000.64.594.76.65.91 0 238,637) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub -Total $0 $0 $0 $0 $0 $0 Total Expenses I $0 I $0 I $0 I $0 1 $0 Revenue and Ending Cash Comments 2017 2018 2019 2020 2021 Ending Cash: Decrease Increase 132.000.64.508.30 (238,637) 0 0 0 0 Ending Cash: Decrease (Increase) 126.000.39.508.30 238,637 0 0 0 0 Grants/Contributions 0 0 0 0 0 General Fund Subsidy 0 0 0 0 0 New Revenue 0 0 0 0 0 Other 0 0 0 0 0 Total Revenue and Ending Cash $0 $0 $0 $0 $0 17 Packet Pg. 428 EXHIBIT "F": Previously Discussed by Council (October 2017) 8.4.a Budget Amendment for: Third Quarter Item Description: I would like to move $72,000 from the allocated 2016 B-Fund to the 2017 B-Fund to be able to convert (11) vehicles this year to Bi-Fuel propane. In 2016 there was $112,000 unused in the vehicle replacement fund. Part of that amount was left behind because we were not able to convert all (6) of the 2016 Explorers to Bi-fuel propane. We were waiting for a smaller LPG tank to be designed and certified. We also had to wait for the EPA certification for (1) 2017 F-350 Flatbed truck (purchased in 2016). We are now ready to convert these vehicles. Additionally we have (4) 2017 Explorers that can be converted. This year we do not have enough money to convert them out of the allocated 2017 vehicle replacement fund. All (10) of the Explorers replaced Crown Victoria's that were converted in 2012. This would bring us from 20 to 31 converted vehicles running on propane. Department: Public Works Fund EQUIPMENT RENTAL Division: Fleet Title: Propane Conversion Name: Preparer: Mke Adams Department Account Number: 511 Budget Amendment Type? FT If For Council To Consider If previously discussed, date(s) of discussion: What is the nature of the expenditure? I One -Time Is the Expenditure Operating or Capital? I Operating Fill In Item Description is I Baseline Budget 2017 2018 2019 2020 2021 511.100.77.594.48.64.00 0 72,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub -Total $0 $72,000 $0 $0 $0 $0 Total Expenses 1 $72,000 1 $0 I $0 I $0 I $0 Revenue and Ending Cash Comments 2017 2018 2019 2020 2021 Ending Cash: Decrease (Increase) 511.100.77.508.00.00.00 72,000 0 0 0 0 Ending Cash: Decrease (Increase) 0 0 0 0 0 Grants/Contributions 0 0 0 0 0 General Fund Subsidy 0 0 0 0 0 New Revenue 01 01 0 1 01 0 Other 0 0 0 0 0 Total Revenue and Ending Cash $72,000 $0 $0 $0 $0 I Packet Pg. 429 8.4.a EXHIBIT "F": Previously Discussed by Council (October 2017) Budget Amendment for: Third Quarter Item Description: Transfer needed to cover the replacement of heavily deteriorated and undersized existing stormwater pipe within waterline replacement project limits. Department: Public Works Fund Name: STORM Division: Fngineering Title: 2017 Waterline Replacement Preparers IMichele (Mike) De Lilla Department Account Number: F5JB/c482 Budget Amendment Type? I New Item For Council To Consider If previously discussed, date(s) of discussion: What is the nature of the expenditure? I One -Time Is the Expenditure Operating or Capital? I Capital Fill In Item Des cri tionlsI Baseline Budget 2017 2018 2019 2020 2021 Water Pro Services 421.000.74.594.34.41.10 408,703 1,000 0 0 0 0 Water Interfund Services 421.000.74.594.34.41.67 55,384 1,273 0 0 0 0 Water Construction 421.000.74.594.34.65.10 2,018,815 57,531 0 0 0 0 Pro Services Other Funds 421.000.74.594.34.41.90 0 (1,000) 0 0 0 0 Inter and Sery Other Funds 421.000.74.594.34.41.69 0 1,273) 0 0 0 0 Construction Other Funds 421.000.74.594.34.65.91 0 (57,531) 0 0 0 0 Pro Services From Funds 422.000.72.594.31.41.20 1,000 0 0 0 0 Interfund Sery From Funds 422.000.72.594.31.41.67 1,273 0 0 0 0 Construction From Funds 422.000.72.594.31.65.91 57,531 Sub -Total I $2,482,902 $59,804 $0 $o $0 $0 Total Expenses 1 $2,542,706 1 $0 I $0 I $0 I $0 Revenue and Ending Cash Comments 2017 2018 2019 2020 2021 Ending Cash: Decrease Increase 422.000.72.508 59,804 0 0 0 0 Ending Cash: Decrease Increase 0 0 0 0 0 Grants/Contributions 0 0 0 0 0 General Fund Subsidy 0 0 0 0 0 New Revenue 0 0 0 0 0 Other 0 0 0 0 0 Total Revenue and Fndin Cash $59,804 $0 $0 $0 $0 19 Packet Pg. 430 8.5 City Council Agenda Item Meeting Date: 10/10/2017 Brief Update on on City's Financial Relationship with Sno-Isle (10 min.) Staff Lead: Scott James Department: Administrative Services Preparer: Scott James Background/History Staff and Councilmember Teitzel are bringing this information to start a preliminary discussion regarding the City's current financial relationship with Sno-Isle Library District. Staff Recommendation <Type or insert text here> Narrative <Type or insert text here> Attachments: Preliminary 2017 Library Costs Per Person Packet Pg. 431 8.5.a Costs Per Agency library tax population Person $ 83.05 Average PP For Emonds Unincorporated = Amount Less What Snohomish County $ 18,186,863 338,995 $ 53.65 $ 29.40 Edmonds Pays Cities Arlington $ 941,127 18,620 $ 50.54 $ 32.50 Brier $ 428,750 6,555 $ 65.41 $ 17.64 Darrington $ 46,034 1,350 $ 34.10 $ 48.95 Edmonds $ 3,396,685 40,900 $ 83.05 $ - Gold Bar $ 62,909 2,125 $ 29.60 $ 53.44 Granite Falls $ 118,621 3,395 $ 34.94 $ 48.11 Lake Stevens $ 1,380,807 30,900 $ 44.69 $ 38.36 Lynnwood $ 2,348,738 36,590 $ 64.19 $ 18.86 Marysville $ 2,668,883 64,940 $ 41.10 $ 41.95 Mill Creek $ 1,369,769 19,900 $ 68.83 $ 14.22 Monroe $ 827,272 18,120 $ 45.66 $ 37.39 Mountlake Terrace $ 1,054,444 21,090 $ 50.00 $ 33.05 Mukilteo $ 1,808,656 21,070 $ 85.84 $ (2.79) Snohomish $ 552,064 9,625 $ 57.36 $ 25.69 Stanwood $ 327,648 6,635 $ 49.38 $ 33.67 Sultan $ 166,335 4,860 $ 34.23 $ 48.82 Total from Cities $ 17,498,742 306,675 $ 57.06 $ 25.99 Average PP Paid By All $ 52.50 Packet Pg. 432 9.1 City Council Agenda Item Meeting Date: 10/10/2017 Including Women & Minority Business Enterprises (WMBE) in the City's Purchasing Policies (10 min.) Staff Lead: Dave Teitzel, Diane Buckshnis Department: City Council Preparer: Scott Passey Background/History Currently, the City of Edmonds has no specific guidelines governing how and when firms owned by women and/or minorities (WMBE) maybe considered for contracts issued by the city. Seattle, in contrast, has a clear policy outlining expectations for including WMBE firms in the contracting bid process as does the Snohomish County Affordable Housing Consortium. Councilmembers Buckshnis and Teitzel of the Finance Committee have considered the WMBE issue and believe it is worthy of further study to determine whether the time is right to add consideration of WMBE firms to Edmonds' policies. Recommendation 1) Send this request to the Public Safety and Personnel (PSP) Committee for input and recommendation. 2) After review and recommendations by the PSP Committee, the administration should review this concept and provide input regarding the WMBE issues and what policies may be impacted. 3) After review by the PSP Committee and the administration to ensure addition of WMBE goals to Edmonds' policies will not create undue burden on the city, add specific requirements to the City of Edmonds Contracting and Purchasing policy and procedures (and other policies, as appropriate) outlining when and how WMBE firms should be considered as the city issues bid solicitations. Narrative On September 13, 2017, the Council Finance Committee met to discuss updates to the current Contracting and Purchasing policies and procedures. During that discussion, it became apparent this policy had no guidelines concerning consideration of WMBE firms which had been addressed in an earlier Finance Committee meeting. The City of Edmonds is committed to providing fair opportunities to its employees and citizens and has shown a commitment to the principles of diversity by establishing a Diversity Commission. In view of the fact Edmonds' demographics continue to evolve, the Finance Committee believes it is timely to embrace the concept of inclusion by adding WMBE to the list of factors commonly considered by the city in its Purchasing and Contracting process. Additionally, other city policies should be reviewed and amended as appropriate to ensure WMBE firms are considered. Packet Pg. 433 9.1 Attached is an illustrative draft of the Edmonds Contracting and Purchasing policy with WMBE references included where they may be appropriate. Also attached is Seattle's Inclusion Plan for Construction -Public Works for reference. The Snohomish County Consortium Affordable Housing Program Policies document is also attached (see P. 27 for WMBE specifications). Attachments: Purchasing Policy 2017 illustrative draft Seattle WMBE Snohhomish County Consortium Policies Packet Pg. 434 9.1.a Illustrative draft w/ WMBE City of Edmonds `hC. 1 ISO Contracting and Purchasing Policies and Procedures March 2017 Packet Pg. 435 9.1.a Table of Contents Paqe Policy......................................................................................................................................................2 Purpose..................................................................................................................................................2 Authority................................................................................................................................................2 Parameters.............................................................................................................................................2 Procurementof Products.....................................................................................................................3 Procurement of Professional Services...............................................................................................3 A. Professional, Technical, and Other............................................................................................3 B. Architectural, Engineering, and Land Surveyor Services(A/E).................................................4 Grant Agreements and Grant Reimbursement Documents ------------------------------------------------------------- 4 Procurementof Public Works..............................................................................................................5 BiddingRequirements..........................................................................................................................6 BidProcedures...................................................................................................................................6 Apprentice Requirements...................................................................................................................7 ResponsibleBidder Criteria...............................................................................................................9 SmallWorks Roster............................................................................................................................11 LimitedPubic Works Process.........................................................................................................13 Change Orders on Public Works Construction Contracts.............................................................13 Reimbursement of Expenses.............................................................................................................14 OtherIssues........................................................................................................................................14 Interlocal Agreements....................................................................................................................14 Sole Source Procurement..............................................................................................................14 SpecialMarket Conditions..............................................................................................................15 Emergencies...................................................................................................................................15 Record Retention Requirements....................................................................................................15 State Minimum Bidding Requirements...........................................................................................15 Conflictsof Interest.........................................................................................................................15 Formsand Templates....................................................................................................................16 Recyclables....................................................................................................................................16 SurplusItems..................................................................................................................................16 StoreIssued Charge Cards............................................................................................................16 PurchaseCards..............................................................................................................................16 QuickChecks.................................................................................................................................16 EarlyRelease.................................................................................................................................16 PettyCash......................................................................................................................................16 BudgetAdjustments.......................................................................................................................16 Exclusive Contract Agreements.....................................................................................................17 Expenditures of Direct or Indirect Federal Financial Assistance....................................................17 Safeguard Personally Identifiable Information...............................................................................17 FinanceCommittee........................................................................................................................17 Conflict of Interest Dislclosure Form................................................................................................18 City of Edmonds Purchasing Policy April 2017 Page 1 of 19 Packet Pg. 436 9.1.a Policy The City of Edmonds will acquire goods and services in a manner that results in the most efficient delivery of the same considering cost and value received. To avoid conflict of interest, procurement will be impartial. Procurement of goods and services will provide the City with the best quality for the best value and will be for the benefit of the public. Employees are prohibited from making purchases for personal use and charging any City vendor account. Purchases will be made within budget limits and to meet goals and objectives approved in the City's budget. Potential purchases that are not within budget limits will be pre -approved through a budget amendment process. All City purchases will ultimately be approved by the City Council through the voucher approval process. Purpose This administrative manual establishes City responsibilities and policies, procedures, and practices to follow to purchase equipment, materials, and services. All employees must follow established policies and procedures. The City's purchasing policies and procedures, however, are intended solely for the benefit of the City. Nothing therein shall be interpreted to create any specially benefited or protected class of persons, or any private cause of action against the City. Adherence to policies and procedures will ensure that public purchases and contracts are open, fair, and at the least cost to the public. Policies and procedures are divided into six major areas: 1) Procurement of Products, 2) Procurement of Professional Services, 3) Procurement of Public Works, 4) Bidding Requirements, 5) Reimbursement of Expenses, and 6) Other Issues. Authority A department director (or designee), acting within his/her department budget, is authorized to provide for supplies and services purchases. To ensure the City's fiscal responsibility, purchases are coordinated through the Finance Department. The City's procurement procedures are based on Revised Code of Washington minimum standards, Edmonds City Council adopted resolutions and ordinances, rules and guidelines from the State Auditor's Office, and recommendations from Municipal Research Services Center. Parameters Dollar -value ranges indicated pertain to each purchase (including tax, freight, handling and set up costs, if applicable). Purchases cannot be broken into multiple purchases to avoid compliance with State statutes and City policies. Procurement of goods or services specifically identified and approved by Council during the budget process are excluded from pre -approval requirements. Any contract that extends beyond the approved budget cycle or which has continuing provisions (indemnities) which impose obligations beyond the budget cycle must go to Council for authorization; provided that the Mayor (or designees) shall be authorized to execute contracts with indemnity provisions that survive expiration or termination of the contracts if the following conditions are met: (1) City Attorney determines that the indemnity provision is in a standard form that assigns risks in a manner consistent with the costs and purposes of the contract; and (2) the dollar value of the contract is less than $100,000. City of Edmonds Purchasing Policy April 2017 Page 2 of 19 Packet Pg. 437 9.1.a Procurement of Products Purchasing decisions costing $50,000 or less must be approved by the department director (or designee). Purchases costing between $20,000 and $35,000 require at least three telephone quotes from vendors (unless the items are from a sole source vendor), and completion of the vendor quote form. Purchasing decisions costing more than $35,000 but less than $50,000 must be approved by the department director (or designees). Purchases require written quotations from, if possible, at least three vendors (unless the items are from a sole source vendor or if only two possible vendors can be found). Purchasing decisions costing more than $50,000 but less than $100,000 must be approved by the department director and the Mayor (or their designees). Purchases require written quotations from, if possible, at least three vendors (unless the items are from a sole source vendor or if only two possible vendors can be found). Purchases in excess of $100,000 must be bid competitively (unless the items are from a sole source vendor). See Bidding Requirements below. The City Council must authorize the call for bids for a purchase estimated at $100,000 or more, as well as award the contract. When soliciting quotes, the City will not inform a vendor of other vendors' quotes. All quotes/bids must be awarded to the lowest responsible bidder. Procurement of Professional Services A. Professional, Technical, and Other Services Professional, Technical and Other services include disciplines not specifically related to A/E such as attorneys, computer programmers, financial analysts, bond counsels, artists, planners, real estate appraisers, landscapers, etc. 2. Purchase of professional services requires completion of a City professional service contract that describes services to be performed and purchase price. The department director (or designee) must approve purchases of professional services costing $50,000 or less, and provided funds have been budgeted is authorized to sign the contract. 4. The department director and the Mayor (or their designees) must approve purchases of professional services costing more than $50,000 but less than $100,000. The Mayor is authorized to sign the contract provided funds have been budgeted. Professional services with an estimated consultant fee of $100,000 or greater, require a focused public solicitation to ensure the consultant has the necessary expertise. If the work is not part of a project listed in the most current City Council Approved budget or CIP, a summary of the public solicitation must be put on the City Council agenda for approval prior to advertisement. The City Council must approve Professional Service contracts costing more than $100,000, and authorize the Mayor to sign the contract. 6. Expertise, experience, including prior experience with the City, timeframe for completing projects, categorization of a firm as a MiRGrit" ^f ` erna^Woman or Minority Business Enterprise (EWMBE) and the value of a negotiated agreement will be considered when choosing a consultant/firm to perform professional services. City of Edmonds Purchasing Policy April 2017 Page 3 of 19 Packet Pg. 438 9.1.a B. Architectural, Engineering and Land Surveyor Services (A/E) 1. Procurement of A/E services will be in accordance with Chapter 39.80 RCW. The statute requires advance notice of the need for professional services (RCW 39.80.030), evaluation of firms' qualifications and performance (RCW 39.80.040), and negotiation with firms in accordance with adjudged qualifications (RCW 39.80.050). A/E purchases will be coordinated through the Public Works Department to ensure compliance with State statutes. 2. The department director (or designee) are designated authority to approve advertising Requests for Qualifications (RFQ's) for A/E services when the estimated consultant contract fee is $50,000 or less and to approve proceeding with procurement of A/E services using the A/E Consultant Roster, provided funds have been budgeted by Council. 3. The department director and the Mayor (or their designees) must approve consultant contracts when the estimated consultant contract fee is greater than $50,000, but less than $100,000, provided funds have been budgeted. The Mayor is authorized to sign the contract. 4. Per Resolution 1155 the City utilizes the A/E consultant roster maintained by Municipal Research and Services Center (MRSC). Selection of an A/E consultant from the consultant roster may be made if the estimated consultant fee is $100,000 or less. All projects with an estimated A/E consultant fee of $100,000 or greater, and projects that are sufficiently complex/unique will require a focused public solicitation advertised as a Request for Qualification (RFQ's) to ensure the A/E consultant has the necessary expertise. If the project is not listed in the City's current City Council Approved budget or CIP, a summary of the RFQ and project details must be put on the City Council agenda for approval prior to advertising the RFQ. The City Council must approve A/E Professional Service contracts costing more than $100,000, and authorize the Mayor to sign the contract. A selection panel, with a minimum of three employees, shall be used to select an A/E consultant when the estimated consultant fee exceeds $100,000. A selection panel is optional when the A/E consultant fee is estimated to be less than $100,000. Purchase of A/E services require completion of a City professional service contract that describes services to be performed and purchase price. Grant Agreements and Grant Reimbursement Documents The Mayor shall be authorized to execute grant agreements for capital projects where the City Council previously authorized the project in the current Capital Improvement Program and, for growth -related projects, where the scope of the project is substantially consistent with the project description in the Capital Facilities Plan. Once a grant agreement has been properly executed as provided above, the director of the department overseeing the capital project may execute documents necessary to implement the grant agreement, including documents necessary for the city to be reimbursed by the granting agency. The Federal Highway Administration, through the State, sometimes authorizes Federal transportation funding to the City of Edmonds for transportation projects. The Code of Federal Regulations, 2 CFR 200.415(a) has been revised to ensure that final fiscal reports or vouchers requesting payment under Federal agreements must include the following certification, which, under the this policy, may be signed by the Mayor, Director, or City Engineer, who are hereby authorized to legally bind the City for the sole City of Edmonds Purchasing Policy April 2017 Page 4 of 19 Packet Pg. 439 9.1.a purpose of requesting reimbursement for Federally funded transportation project to terms that are consistent with the applicable grant agreement. "By signing this report, I certify to the best of my knowledge and belief that the report is true, complete and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812)." Procurement of Public Works RCW 39.04.010 defines public works to include all work, construction, alteration, repair or improvement other than ordinary maintenance, executed at the cost of the City. (Most public works projects are multiple craft, defined as more than one type of work being executed.) 1. City employees may be used to perform public works projects until the accumulated costs of public works projects performed by them during a budget cycle meets ten percent of the City's public works construction budget; PROVIDED that, for any public works project costing more than sixty-five thousand dollars, if multiple crafts or trades are involved, or forty thousand dollars, if only a single craft or trade is involved, must be bid competitively. See Bidding Requirements below. 2. Starting in January 1, 2010, the bid limits above will be sixty five thousand dollars and forty thousand dollars, respectively. 3. Once the accumulated cost of public works project performed by City employees during a budget cycle meets or exceeds ten percent of the City's public works construction budget, all other public works projects must be bid competitively, regardless of estimated costs. See Bidding Requirement below. 4. Public works projects are governed by prevailing wage requirements, regardless of contract amount. 5. Except as noted below for Small Works Roster or limited public works, a bid bond of five percent will be required on all public works bids, and a performance bond (or retainage for public works contracts of thirty five thousand dollars or less) will also be required pursuant to Chapter 39.08 RCW on public works contracts. Bidding Requirements The competitive bid process is generally (although not exclusively) used for public works projects. Dollar -value ranges indicated pertain to each purchase (including tax, freight, handling and set up costs, if applicable). Purchases cannot be broken into multiple purchases to avoid compliance with State statutes or City policies and procedures. Negotiations on bids are not permitted. Bid Procedures 1. Authorization for Bids Authorization to call for bids will be approved by the department director (or designee) for public works projects estimated at less than $50,000; and by the department director and the Mayor (or their designees) for a public works project costing more than $50,000. If the project is not included in the current City Council Approved budget or CIP, the City Council must authorize the call for bids for a project estimated at $100,000 or more. City of Edmonds Purchasing Policy April 2017 Page 5 of 19 Packet Pg. 440 9.1.a 2. Publication of Notice After proper authorization, the requesting department director (or designee) will publish the advertisement for Bids reasonably in advance of the bid submittal deadline in the official newspaper or a newspaper of general circulation most likely to bring responsive bids. 3. Notice Contents Notice (or advertisement) for bids should contain definite specifications and procedures for bidders to use to estimate their bids. A bid notice for public work should include: - project title, - nature and scope of work or goods sought, - where contract documents (plans and specifications) can be reviewed or obtained, - cost, if any, to obtain a set of contract documents, - place, date, and time that bids are due, - place, date, and time that bids will be opened (if different from above), - materials and equipment to be furnished by the City, if any, - statement that a bid bond must accompany the bid for public works projects, and a - statement that the City retains the right to reject any and all bids and to waive minor irregularities in the bidding process. In addition, the City may provide evaluation criteria; minimum qualification expectations; date, time, and location of pre -bid conference (if applicable); and name, address, and telephone number of the project contact to assist bidders in preparing responsive submittals. 4. Bid Opening Bids are submitted to the City Clerk's Office, where they are time and date stamped and processed. No bids will be opened prior to the predetermined date and time. 5. Report on Bids The requesting department director will report on all bids received with a recommendation on the lowest responsible bidder, if any, or to reject all bids. 6. Bid Award Unless all bids are rejected, a winning bid must be awarded to the lowest responsible bidder by the department director (or designee) for a public works project costing less than $50,000; and by the department director and the Mayor (or their designees) for a public works project costing more than $50,000 but less than $100,000. The City Council must award bids which exceed $100,000. The City may choose to reject all bids for any reason. The following shall apply to bid solicitations: • Selection of a winning offer for products is based primarily on low bid, after factoring whenever possible such costs as maintenance and operations over the expected period of use. Consideration, however, may also be given for the following: • Ability, capacity, expertise and skill of the bidder to perform the contract. • Character, integrity, reputation, judgment, experience, and efficiency of bidder. City of Edmonds Purchasing Policy April 2017 Page 6 of 19 Packet Pg. 441 9.1.a • Categorization of the bidder (either as the primary bidder or via use of subcontractors by the primary bidder) as a Minority or WornanWomen or Minority Business Enterprise (iEW MBE). • I tilizatiGR of o ent' e-S • Ability to perform within time specified. • Quality of performance of previous contract(s). • Other information having a bearing on the decision to award the contract. • Minimum qualifications must be provided to ensure respondents are reasonably qualified. Minimum qualification requirement should be compared against the marketplace to ensure they are not overly restrictive. • To ensure consistency and fair process, the City will use standard forms, documents, contracts, and terms and conditions, when practical. The Public Works & Finance Departments will maintain templates for bid -related documents for use by departments. The City may use an evaluation selection committee to promote an open and proper selection. The requesting department director will appoint committee members to act in an advisory capacity. • When practical, the City will conduct a pre -bid conference to allow a thorough discussion of the City's expectations, intent, scope, specifications, and terms. Interested companies should be encouraged to attend. • Every bidder for a public works contract that is expected to cost one million dollars or more must submit as part of the bid, or within one hour after the published bid submittal time, the names of the subcontractors with whom the bidder, if awarded the contract, will subcontract for performance of the work of: HVAC (heating, ventilation, and air conditioning); plumbing as described in chapter 18.106 RCW; and electrical as described in chapter 19.28 RCW, or to name itself for the work. The bidder shall not list more than one subcontractor for each category of work identified, unless subcontractors vary with bid alternates, in which case the prime contract bidder must indicate which subcontractor will be used for which alternate. Failure of bidder to submit as part of the bid the names of such subcontractors or to name itself to perform such work or the naming of two or more subcontractors to perform the same work shall render the bid nonresponsive and, therefore, void. • If no responsive bid is received on the first call the City may re -advertise and make a second call, or without any further call, it may enter into a negotiated contract, purchase the supplies, material or equipment or perform the work or improvement using its own employees. Apprentice Requirements A. Definitions. 1. "Apprentice" means an apprentice enrolled in a state -approved apprenticeship training program. 2. "Contractor" means a person, corporation, partnership, limited liability company, or joint venture entering into a contract with the City to construct a public work. 3. "Labor hours" refers to the total number of hours worked by workers receiving an hourly wage who are directly employed on the site of the public work and who are subject to state or federal prevailing wage requirements. "Labor hours" shall also include hours worked by workers employed by subcontractors on the site of the public work, and shall City of Edmonds Purchasing Policy April 2017 Page 7 of 19 Packet Pg. 442 9.1.a include additional hours worked as a result of a contract or project adjustment or pursuant to an agreed -upon change order. 4. "Estimated cost" means the anticipated cost of a public work, as determined by the City, based upon the expected costs of materials, supplies, equipment, and labor, but excluding taxes and contingency funds. 5. "Public work" refers to all City funded construction projects that constitute a public work pursuant to RCW 39.04.010 as now or hereafter amended and estimated to cost $1,000,000 or more. 6. "State -approved apprenticeship training program" means an apprenticeship program approved or recognized by the Washington State Apprenticeship and Training Council. 7. "Subcontractor" means a person, corporation, partnership, limited liability company, or joint venture that has contracted with the contractor to perform all or part of the work to construct a public work by a contractor. B. Apprentice utilization. Apprentices shall be utilized for the construction of public works by contractors and subcontractors in accordance with this section. 1. Apprenticeship utilization program goal. For public works contracts with an estimated cost of One Million Dollars $1,000,000) or more, the Director of Public Works, or his designee, is authorized to require that up to fifteen percent (15%) of the contract labor hours, including contractor and subcontractor hours, be performed by apprentices. 2. Contract requirements. Contract documents for such public works construction projects shall include provisions detailing the apprentice labor requirements. 3. Monitoring. The City will include an Apprenticeship Utilization Form for contractors to complete when submitting their bid documents, which identifies the intended usage of apprentices by the contractor and any subcontractors. This document will require the identification of individual apprentices by name and Washington State apprenticeship registration number, an estimate of the total apprentice labor hours, and the identification of apprentice hours to be worked by minorities, women, persons with disabilities and disadvantaged youth. This provision is not intended and shall not be used to discriminate against any applicant for training. In addition, the City will require the submittal of an Apprenticeship Verification Form by the contractor at the conclusion of the public works project that will identify the actual work performed by apprentices for the contractor and subcontractors. 4. Failure to meet utilization goal. Failure by a contractor to comply with established apprenticeship requirements, unless otherwise adjusted or waived in writing as set forth below, shall be deemed a breach of contract for which the City shall be entitled to all remedies allowed by law under the contract. Failure to comply with the apprenticeship requirements may also be considered evidence bearing on a contractor's qualification for award of future contracts with the City. 5. Adjustment and waiver. The Director of Public Works, or his designee, may adjust or waive the requirements of this section for a specific project at any time for the following reasons: (a) The demonstrated lack of availability of apprentices in specific geographic areas; (b) A disproportionately high ratio does not make feasible the participation; of material costs to labor hours, which required minimum levels of apprentice City of Edmonds Purchasing Policy April 2017 Page 8 of 19 Packet Pg. 443 9.1.a (c) The reasonable and necessary requirements of the contract render apprentice utilization infeasible at the required levels; (d) In order to meet the requirement, the contractor will be forced to displace members of its workforce; (e) The participating contractor has demonstrated a good faith effort to comply with the requirements of this section; and/or Other criteria deemed appropriate that are not inconsistent with the purpose and goals of this section City of Edmonds Purchasing Policy April 2017 Page 9 of 19 Packet Pg. 444 9.1.a Responsible Bidder Criteria A. Mandatory responsible bidder criteria. 1. The bidder responsibility criteria set forth in this section shall be used by the Public Works Department to establish the minimum requirements for all contractors and subcontractors bidding on City contracts for public work (as those terms are defined in RCW 39.04.010). The bid documents shall set forth the documentation to be submitted by bidders to demonstrate their compliance with the mandatory responsible bidder criteria. 2. To be considered a responsible bidder and qualified to be awarded a City contract for public work, the bidder must: (a) At the time of bid submittal, have a certificate of registration in compliance with chapter 18.27 RCW (contractor registration); (b) Have a current state unified business identifier (UBI) number; (c) If applicable, have: (i) industrial insurance coverage for the bidder's employees working in Washington as required in Title 51 RCW; (ii) a state employment security department number as required in Title 50 RCW; and (iii) a state excise tax registration number as required in Title 82 RCW; (d) Not be disqualified from bidding on any public works contract under RCW 39.06.010 or RCW 39.12.065(3); and (e) Until December 31, 2013, not have violated RCW 39.04.370 more than one time as determined by the State Department of Labor and Industries. 3. A bidder must verify mandatory responsibility criteria for each first tier subcontractor, and a subcontractor of any tier that hires other subcontractors must verify mandatory responsibility criteria for each of its subcontractors. Verification shall include that each subcontractor, at the time of subcontract execution, meets the responsibility criteria listed in RCW 39.04.350(1) and ECC 18.00.060 and possesses an electrical contractor license, if required by chapter 19.28 RCW, or an elevator contractor license, if required by chapter 70.87 RCW. This verification requirement, as well as the mandatory responsibility criteria, must be included in every public works contract and subcontract of every tier. B. Supplemental responsible bidder criteria. 1. In addition to the mandatory bidder responsibility criteria set forth in ECC 18.00.060 (A), the Public Works Department may adopt in connection with a particular project relevant supplemental bidder responsibility criteria which the bidder must meet. Those supplemental criteria, including the basis for evaluation and the deadlines for requesting modification of the supplemental bidder responsibility criteria and for appealing a determination that a low bidder is not responsible under the supplemental bidder responsibility criteria, shall be provided in the invitation to bid or bidding documents. 2. As relevant to a particular project, supplemental bidder responsibility criteria may be included to require that: City of Edmonds Purchasing Policy April 2017 Page 10 of 19 Packet Pg. 445 9.1.a (a) The bidder shall not owe delinquent taxes to the Washington State Department of Revenue without a payment plan approved by the Department of Revenue; (b) The bidder shall not currently be debarred or suspended by the federal government; (c) The bidder shall have complied with minority and women's business enterprises, disadvantaged business enterprises, or other similar utilization requirements or goals on federally -funded public works projects with such requirements completed by the bidder within three years of the bid submittal date, unless there are extenuating circumstances acceptable to the City; (d) The bidder shall not be listed as an ineligible contractor on the federal GSA Excluded Parties List System set forth by 31 U.S.0 § 6101 and Executive Order 13496; (e) If bidding on a public works project subject to the apprenticeship utilization requirements in ECC 18.00.050, the bidder: (i) shall not have been found out of compliance with apprenticeship requirements of ECC 18.00.050 unless otherwise excepted or waived in writing by the Mayor or the Mayor's designee pursuant to that section for a one-year period immediately preceding the date of the bid submittal deadline; and (ii) shall have complied with apprenticeship utilization goals on public works projects having such requirements that were completed by the bidder within a three-year period immediately preceding the date of the bid submittal deadline, unless there are extenuating circumstances acceptable to the City; (f) The bidder shall not have been convicted of a crime involving bidding on a public works contract within five years from the bid submittal deadline; (g) The bidder's standard subcontract form shall include the subcontractor responsibility language required by RCW 39.06.020, and the bidder shall have an established procedure which it utilizes to validate the responsibility of each of its subcontractors. The bidder's subcontract form shall also include a requirement that each of its subcontractors shall have and document a similar procedure to determine whether the sub -tier subcontractors with which it contracts are also "responsible" subcontractors as defined by RCW 39.06.020; (h) The bidder shall not have a record of excessive claims filed against the retainage or payment bonds for public works projects during the previous three years that demonstrate a lack of effective management by the bidder of making timely and appropriate payments to its subcontractors, suppliers, and workers, unless there are extenuating circumstances acceptable to the City; (i) The bidder shall have successfully completed projects of a similar size and scope as required by the contract documents for the project. In evaluating whether projects were successfully completed, the City may check owner references for previous projects and evaluate the owner's assessment of bidder performance, including but not limited to quality control, safety record, City of Edmonds Purchasing Policy April 2017 Page 11 of 19 Packet Pg. 446 9.1.a timeliness of performance, use of skilled personnel, management of subcontractors, availability of and use of appropriate equipment, compliance with contract documents, and management of submittals process, change orders and close-out; (j) The bidder shall not have had any public works contract terminated for cause by a government agency during the five year period immediately preceding the bid submittal deadline for the project, unless there are extenuating circumstances acceptable to the City; (k) The bidder shall not have judgments entered by a court of law against the bidder within five years of the bid submittal date that demonstrate a pattern of failing to meet the terms of contracts, unless there are extenuating circumstances acceptable to the City; and (1) The bidder shall not have a documented pattern of prevailing wage complaints filed against it within five years of the bid submittal date that demonstrates a failure to pay workers prevailing wages, unless there are extenuating circumstances acceptable to the City. 3. Supplemental bidder responsibility criteria may include any other criteria determined by the City to be relevant to the particular project being bid, including but not limited to the ability, capacity and skill of the bidder to perform, the experience and efficiency of the bidder, the financial situation of the bidder, and the performance of the bidder on previous contracts or services. 4. In a timely manner before the bid submittal deadline, a potential bidder may request that the City modify the supplemental bidder responsibility criteria. The City must evaluate the information submitted by the potential bidder and respond before the bid submittal deadline. If the evaluation results in a change of the criteria, the City must publish an addendum to the bidding documents identifying the modified criteria. 5. If the bidder fails to supply information requested concerning responsibility within the time and manner specified in the bid documents, the City may base its determination of responsibility upon any available information related to the supplemental criteria or may find the bidder not responsible. 6. If the City determines a bidder to be not responsible, the City must provide, in writing, the reasons for the determination. The bidder may appeal the determination within the time period specified in the bidding documents by presenting additional information to the City. The City must consider the additional information before issuing its final determination. If the final determination affirms that the bidder is not responsible, the City may not execute a contract with any other bidder until two business days after the bidder determined to be not responsible has received the final determination. 7. The invitation to bid or bidding documents shall specify the times, manner and means of communications, deadlines and determinations required by this section. Small Works Roster The City of Edmonds has entered into an agreement with Municipal Research and Services Center, whereas they will maintain the Small Works Roster. Resolution 1155, passed November 5, 2007 established a small works roster process to award public works contracts, and is incorporated below. The Mayor (or designee) is authorized to proceed with procurement from the Rosters, provided funds have been budgeted by Council. City of Edmonds Purchasing Policy April 2017 Page 12 of 19 Packet Pg. 447 9.1.a Use of the Small Works Roster allows the City to preclude the advertisement requirements and sealed bidding procedures of the formal competitive process. All other bidding procedures and requirements not in conflict remain the same. The following small works roster procedures are established for use by the City pursuant to RCW 39.04.155: Cost. The City need not comply with formal sealed bidding procedures for the construction, building, renovation, remodeling, alteration, repair, or improvement of real property where the estimated cost does not exceed Three Hundred Thousand Dollars ($300,000.00), which includes the costs of labor, material, equipment and sales and/or use taxes as applicable. Instead, the City may use the small works roster procedures for public works projects as set forth herein. The breaking of any project into units or accomplishing any projects by phases is prohibited if it is done for the purpose of avoiding the maximum dollar amount of a contract that may be let using the small works roster process. 2. Publication. At least once a year, on behalf of the City, MRSC shall publish in a newspaper of general circulation within the jurisdiction a notice of the existence of the roster or rosters and solicit the names of contractors for such roster or rosters. Responsible contractors shall be added to appropriate MRSC roster or rosters at any time that they submit a written request and necessary records. The City may require master contracts to be signed that become effective when a specific award is made using a small works roster. 3. Telephone or Written Quotations. The City shall obtain telephone, written or electronic quotations (in accordance with City of Edmonds Purchasing Policies and Procedures) for public works contracts from contractors on the appropriate small works roster to assure that a competitive price is established and to award contracts to a contractor who meets the mandatory bidder responsibility criteria in RCW 39.04.350(1) and any pre -establish supplementary bidder criteria under RCW 39.04.350(2). a) A contract awarded from a small works roster need not be advertised. Invitations for quotations shall include an estimate of the scope and nature of the work to be performed as well as materials and equipment to be furnished. However, detailed plans and specifications need not be included in the invitation. b) Quotations may be invited from all appropriate contractors on the appropriate small works roster. As an alternative, quotations may be invited from at least five contractors on the appropriate small works roster who have indicated the capability of performing the kind of work being contracted, in a manner that will equitably distribute the opportunity among the contractors on the appropriate roster. "Equitably distribute" means that the City may not favor certain contractors on the appropriate small works roster over other contractors on the appropriate small works roster who perform similar services. If the estimated cost of the work is from one hundred fifty thousand dollars ($150,000) to three hundred thousand dollars ($300,000), and the City chooses to solicit bids from at least five, but less than all the appropriate contractors on the appropriate small works roster, the City must notify the remaining contractors on the appropriate small works roster that quotations on the work are being sought. The City has the sole option of determining whether this notice to the remaining contractors is made by: (i) publishing notice in a legal newspaper in general circulation in the area where the work is to be done; (ii) mailing a notice to these contractors; or (iii) sending a notice to these contractors by facsimile or email. City of Edmonds Purchasing Policy April 2017 Page 13 of 19 Packet Pg. 448 9.1.a c) At the time bids are solicited, the City representative shall not inform a contractor of the terms or amount of any other contractor's bid for the same project; d) A written record shall be made by the City representative of each contractor's bid on the project and of any conditions imposed on the bid. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone inquiry. 4. Limited Public Works Process. If a work, construction, alteration, repair, or improvement project is estimated to cost less than thirty-five thousand dollars ($35,000), the City may award such a contract using the limited public works process provided under RCW 39.04.155(3). For a limited public works project, the City will solicit electronic or written quotations (note: no telephone quotations permitted) from a minimum of three contractors from the appropriate small works roster and shall award the contract to the lowest responsible bidder as defined under RCW 39.04.010. After an award is made, the quotations shall be open to public inspection and available by electronic request. For limited public works projects, the City may waive the payment and performance bond requirements of chapter 39.08 RCW and the retainage requirements of chapter 60.28 RCW, thereby assuming the liability for the contractor's nonpayment of laborers, mechanics, subcontractors, materialmen, suppliers, and taxes imposed under Title 82 RCW that may be due from the contractor for the limited public works project. However, the City shall have the right of recovery against the contractor for any payments made on the contractor's behalf. The City shall maintain a list of the contractors contacted and the contracts awarded during the previous 24 months under the limited public works process, including the name of the contractor, the contractor's registration number, the amount of the contract, a brief description of the type of work performed, and the date the contract was awarded. 5. Determining Lowest Responsible Bidder. The contract must be awarded to the contractor submitting the lowest responsible bid, or all bids must be rejected. If all bids are rejected, the City may call for new bids. A responsible bidder shall be a registered and/or licensed contractor who meets the mandatory bidder responsibility criteria established by RCW 39.04.350 and any supplementary criteria pre -established by the City. 6. Award. For contracts of $100,000 or more, the Mayor or his designee shall present all quotations/bids and recommendation for award of the contract to the lowest responsible bidder to the City Council for approval. For public works project contracts of less than $100,000, the Mayor or his designee shall have the authority to award public works contracts. 7. Bond and Other Requirements. Vendors/contractors selected off the Small Works Roster are not relieved from observing applicable legal requirements such as Bid Bond, Performance Bond, Retainage Requirements, Prevailing Wage, Labor and Material Bonding, etc. The City may waive bid bond for any solicitation using the Small Works Roster process, and/or performance bond for any contract awarded using the limited public works process. Change Orders on Public Works Construction Contracts Approval of change orders on Public Works Construction Contracts shall be in accordance with the following requirements: 1. City Council members shall be notified by e-mail of any change order in excess of $50,000. 2. City Council approval shall be required for: a) any change order in excess of $100,000 b) any change order which puts the total of change orders on a project over the designated City of Edmonds Purchasing Policy April 2017 Page 14 of 19 Packet Pg. 449 9.1.a management reserve. c) If City Council approval is required for a change order, but circumstances require a speedier approval, the Mayor is authorized to approve the required work provided that the change order and a written statement of the special circumstances requiring speedier approval is placed on the next City Council agenda for review. Reimbursement of Expenses Travel and Meetina Expenses Travel or training requires the requesting department director's prior approval. Expenses incurred on authorized travel will be reimbursed as submitted on the required, itemized, Claim for Expenses form. Receipts must be submitted with the claim form for all expenses except meals. To qualify for reimbursement, submitted expenses must be within 30 days of incurrence, reasonable and prudent under the circumstances, and directly relate to the conduct of City business or service. Reimbursement for personal expenses is prohibited. Travel mileage by private vehicle is reimbursed at the City's established rate, which is the current IRS rate. Other Issues Interlocal Aareements Solicitation of bids/quotations is not required when purchases of materials, supplies, or equipment are made under State standard contracts or similar contracts executed by and through other local governments. The City Council must approve an interlocal agreement with the local government or State agency after confirming that the other government or agency has complied or intends to comply with its own statutory requirements and either (i) posted the bid or solicitation notice on a web site established and maintained by a public agency, purchasing cooperative, or similar service provider, for purposes of posting public notice of bid or proposal solicitations, or (ii) provided an access link on the state's web portal to the notice. Neither solicitation of bids/quotations nor interlocal agreement is required when purchasing materials, supplies, or equipment from or through the United States of America or any agency thereof (RCW 39.32.070). All internal procurement approval requirements must be observed and the process must comply with state statutory requirements. Sole Source Procurement If, after conducting a good faith review of available resources, the requesting department director determines that there is only one source of the required materials, supplies, equipment or service (including public works), a purchase may be awarded without complying with established bid requirements. The requesting department will submit a written request for sole source procurement with negotiated contract price, terms, conditions and delivery for approval. The vendor must certify that the City is getting the lowest price offered as compared to similarly situated clients, terms and conditions. Department directors can approve Sole Source purchases up to $50,000, the department director and the Mayor can approve sole source purchases costing more than $50,000 but less than $100,000. Council must approve sole source purchases costing more than $100,000. Immediately after the award of any sole source purchase, the factual basis for awarding the same must be recorded and open to public inspection. City of Edmonds Purchasing Policy April 2017 Page 15 of 19 Packet Pg. 450 9.1.a Special Market Conditions The City may waive established bidding requirements if an opportunity arises to purchase favorably - priced supplies, materials or equipment unrelated to public works projects that will be sold before the City can conduct the bid process. The City may waive established bidding requirements and acquire any supplies, materials, and equipment through an auction if the items can be purchased at a competitive price. Waiver will be authorized by the Mayor (or designee). Immediately after the award of any special market conditions contract, the contract and the factual basis for awarding the same must be recorded and open to public inspection. Emergencies In case of unforeseen circumstances beyond the control of the City that present a real and immediate threat to the City's ability to properly perform essential functions, or to City property or the safety of citizens and/or staff, the Mayor (or designee) can waive bid requirements to purchase supplies, materials, equipment or services to stabilize the emergency condition. Purchases must be properly documented as an emergency as soon as possible following the event. Within two weeks of confirming the emergency existed, the City Council will adopt a resolution certifying the emergency situation existed. Record Retention Requirements The City must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All quote/bid documents must be retained as indicated in the State of Washington Retention Schedule and be available for public inspection. State Minimum Bidding Requirements On a case by case basis, the City Council may waive any requirement contained in the City's purchasing policies and procedures as long as the result complies with applicable state laws. Conflicts of Interest The City will not accept donations of materials or services in return for a commitment to continue or initiate a purchasing agreement. No employee will participate in a procurement when they are aware of a conflict of interest, or accept gifts or gratuities from existing or potential vendors in return for a commitment to continue or initiate a purchasing relationship. See also RCW 42.23.030 and Chapter 3.70 ECC. The City maintains the following standards of conduct covering conflicts of interest and governing the performance of its employees engaged in the selection, award and administration of contracts. No employee or elected official of the City can participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee or elected official, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The employees and elected officials of the City must neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. However, in accordance with Section 10.14 of the City Personnel Policy, this requirement is waived if the benefit received is not substantial or is of nominal value. These standards of conduct provide for disciplinary actions to be applied for violations of such standards by employees or elected officials of the City. City of Edmonds Purchasing Policy April 2017 Page 16 of 19 Packet Pg. 451 9.1.a Employees participating in the selection, award, or administration of a contract supported by a Federal Award must complete and sign a Conflict of Interest Disclosure Form, below in Exhibit 1. Forms and Templates Purchasing forms and templates may be obtained from the public directory. Recyclables Every effort will be made to use products made from recycled materials if such products are available, of acceptable quality, and generally priced the same as similar, non -recycled products (Resolution 766). Surplus Items The City may acquire property from another governmental entity on mutually agreeable terms without soliciting bids/quotations. Store -Issued Charqe Cards It is sometimes necessary to use store -issued charge cards. The Department Managers will request prior approval from the Finance Director or designee before establishing account. Purchase Cards Purchase cards can be issued with the approval of the Finance Director. They are to be used solely for City -authorized business purposes. See Credit Card Policy. Quick Checks Quick checks may be issued to avoid incurring penalties, interest, or late charges. Submit requests for quick checks to the Finance Department. Quick checks will be approved by the Finance Director or designee. Departments should avoid requests for quick checks by informing vendors of invoice deadlines and payment schedules. Early Release Any checks requiring an early release must be approved by the Finance Director or designee. Departments should avoid requests for early release by informing vendors of invoice deadlines and payment schedules. Petty Cash Petty cash funds cover minor disbursements. Employees may be reimbursed from petty cash funds for authorized purchases that total less than the established, petty -cash limit. Budget Adjustments Department directors (or designees) must ensure that purchases are initiated only when departmental appropriations are sufficient to cover the anticipated cost. Expenditures that exceed departmental appropriations require the Mayor's approval via the Budget Adjustment Request Form. City of Edmonds Purchasing Policy April 2017 Page 17 of 19 Packet Pg. 452 9.1.a Exclusive Contract Aareements The City may enter into an exclusive contract with a vendor in order to ensure the lowest prices on goods and/or services unrelated to architecture, engineering, land survey or public works requiring competitive bidding. All departments must use exclusive vendor unless special circumstances such as emergencies, vendor does not carry exact product, etc. Expenditures of Direct or Indirect Federal Financial Assistance Prior to contracting for goods or services which will be paid for with either direct or indirect Federal financial assistance, where vendors have not signed a self certification, vendors must be checked against the Excluded Parties List System to assure they have not been suspended/debarred and are prohibited from receiving federal funds (http://www.epls.gov/). Documentation of verification must be retained and available for audit. See related Grant and Intergovernmental Loan Policy. Safeguard Personally Identifiable Information The City shall take reasonable measures to safeguard protected, personally identifiable information and other information the Federal awarding agency or pass -through entity designates as sensitive or the non - Federal entity considers sensitive consistent with applicable Federal, state, local and tribal laws regarding privacy and obligations of confidentiality. Finance Committee The Finance Committee, composed of two Council members and the Finance Director, will review and update the City of Edmonds' purchasing and accounts payable policies and procedures, as necessary. Minerity or Women or Minority Business Enterprise (WMBE) MWB€WMBE firms are state certified via the Washington State Office of Minority and Women's Business Enterprises system or self -identified firms that are at least 51 % AAIA/RCWMBE owned. A MWB€WMBE must be certified as a nnin4acWMBE firm when submitting a contract bid. City of Edmonds Purchasing Policy April 2017 Page 18 of 19 Packet Pg. 453 9.1.a EXHIBIT 1 City of Edmonds, WA CONFLICT OF INTEREST DISCLOSURE FORM FOR CITY COUNCIL MEMBERS, MAYOR, DIRECTORS, and STAFF Name (please print) Date Position It is the policy of the City of Edmonds to address how issues of actual, potential and perceived conflicts of interest involving elected officials, directors, and employees of the City should be identified, disclosed and managed. This form is designed to identify and disclose known conflicts in an effort to properly manage them. I have read the City of Edmonds's Conflict of Interest policy and understand that as an employee/Elected Official of the City of Edmonds it is my obligation to act in a manner which promotes the best interests of the City and to avoid conflicts of interest when making decisions and taking actions on behalf of the City of Edmonds. My answers to this disclosure form are correctly stated to the best of my knowledge and belief. Should a possible conflict of interest arise in my responsibilities to the City of Edmonds, I recognize that I have the obligation to notify, based on my position, the appropriate designated individual (Director, Mayor, City Council member), and to abstain from any participation in the matter until the City of Edmonds can determine whether a conflict exists and how that conflict shall be resolved. If any relevant changes occur in my affiliations, duties, or financial circumstances, I recognize that I have a continuing obligation to file an amended "Conflict of Interest Disclosure Form" with the appropriate designated department. I understand that the information on this form is solely for use by the City of Edmonds and is considered confidential information. Release to external parties will be only when required by law. iSignature Date Please complete the following questions, and submit this form to the Human Resources Director of the City of Edmonds. 1. Are you or a member of your immediate family an officer, director, trustee, partner (general or limited), employee or regularly retained consultant of any company, firm or organization that presently has business dealings with the City of Edmonds or which might reasonably be expected to have business dealings with the City of Edmonds in the coming year? Yes No If yes, please list the name of the company, firm or organization, the position held, and the nature of the business which is currently being conducted with the City of Edmonds or which may reasonably be expected to be conducted with the City of Edmonds in the coming year: 2. Do you or does any member of your immediate family have a financial interest, direct or indirect, in a company, firm or organization which currently has business dealings with the City of Edmonds or which may reasonably be expected to have such business dealings with the City of Edmonds in the coming year? Yes No If yes, please list the name of the company, firm or organization, the nature of the interest and the name of the person holding the interest, and the nature of the business which is currently being conducted with the City of Edmonds or which may reasonably be expected to be conducted with the City of Edmonds in the coming year: City of Edmonds Purchasing Policy April 2017 Page 19 of 19 Packet Pg. 454 9.1.a EXHIBIT 1 3. Do you or does any member of your immediate family have a financial or personal interest in an entity in which the City of Edmonds has a financial or other vested interest. Yes No If yes, please provide details below: 4. Have you or an immediate family member accepted gifts, gratuities, lodging, dining, or entertainment that might reasonably appear to influence your judgment or actions concerning the business of the City of Edmonds? Yes No If yes, please provide details below: 5. Do you have any other interest or role in a firm or organization, where that interest or relationship might reasonably be expected to create an impression or suspicion among the public having knowledge of your acts that you engaged in conduct in violation of your trust as a trustee, officer, Director or staff member? Yes No If yes, please provide details below: Please add additional pages as needed. If any material changes to the responses provided on this disclosure form occur, the trustee, officer or employee is required to update the information on this form in writing, and submit the update to the City of Edmonds Human Resources Director. Form reviewed by: Remedial Action(s) to be taken: The City of Edmonds will follow-up on all recommended actions to ensure compliance. City of Edmonds Purchasing Policy April 2017 Page 19 of 19 Packet Pg. 455 9.1.b S'11� City of Seattle City Purchasing and Contracting Services (CPCS) Inclusion Plan Construction — Public Works Bidders must complete and submit this form with their bid. Carefully read all instructions For questions or assistance contact: • Miguel Beltran, City Contract Compliance Manager, 206-684-4525 (Migue1.Beltran (@seattle.gov) • Carment Kucinski, 206-684-0188 (carmen.kucinski(cD-seattle.gov) Bidder Company Name Public Works Number Project Title Name of person authorized to speak on behalf of the company regarding this Plan Email Phone Aspirational WMBE GOALS. Total available score: 6 points. Identify the Aspirational WMBE Goals Bidder believes can reasonably be achieved through good faith efforts during this project. It is not mandatory that these goals be achieved; they are not contractually or legally binding. Goals must be developed in good faith and represented as attainable by reasonable efforts. 3-6-17 Estimated percentage of the base bid to Minority Owned contractors and suppliers Estimated percentage of the base bid to Woman Owned contractors and suppliers % Total estimated percentage of the base bid to all WMBE contractors and suppliers % 1 1 P a g e Packet Pg. 456 9.1.b BUSINESS SUPPORT STRATEGIES. Total available score: 4 points Each of the two options below is worth 2 points. Bidder may select one, both, or neither. Once selected, it applies to: 1. Registered as a Women or Minority Owned Business in the City Online Business Directory, and/or 2. Small Business Concern as certified by King County, and/or 3. Disadvantaged Business Enterprise of any definition certified by the State of Washington, and/or 4. Women or Minority Owned Business Enterprise as certified by the State of Washington; and/or 5. Small Business Concern certified by the State of Washington. Business Support Strategy Accept Early Retainage Release. The prime (and any sub -tier primes) will release retainage held for the subcontractor, within thirty (30) days of acceptance of the work performed by the qualified subcontractor. Advance Mobilization Pay: The Prime (and any sub -tier primes) shall advance 10% of the specified and agreed -upon mobilization costs that were identified by line item within the WMBE firms bid, to each qualified firm at least 5 days in advance of the mobilization event. WMBE GUARANTEES. Total available score: 6 points. A Bidder may offer to guarantee work to WMBE firms for the project, by identifying the WMBE and minimum dollar value of such work in the table below. You may add additional rows. WMBE Business Name Minimum Guaranteed Dollar Amount TOTAL $ 3-6-17 21'D,, Packet Pg. 457 City of Seattle: Public Works Women and Minority Business Inclusion Plan Instructions Carefully review all instructions. All Bidders must complete this form. The City public works inclusion plan requires the Bidder identify the good faith efforts the Bidder will use to include woman -owned and minority -owned business (WMBE) firms on the City project. There are 3 options for evidencing good faith efforts. Each option is worth points which can vary depending on information supplied by the Bidder. There are a maximum of 16 points available. The Bidder must earn at least 10 points. Bidders that earn less than 10 points will be found non -responsive and the Bid will be rejected. This Inclusion Plan becomes a material part of the Bidder's contract if the project is awarded to Bidder. WMBE firms are state certified or self -identified firms that are at least 51 % WMBE owned (per SMC 20.42). A WMBE need not be self -identified within the City Online Directory at bid time, but in such case must self -identify and register by time of award. These resources may assist bidders: City On -Line Directory: http://web6.seattle.gov/fas/registration/ OMWBE Directory: http://www.omwbe.wa.gov/certification/certification directory.shtml). 1. INSTRUCTIONS a. All Bidders (including WMBE Primes) must complete and submit this form as part of the Bid for City design -bid -build public works project having an Engineer's Estimate of $300,000 or greater, unless the City expressly instructs otherwise in the bid package. b. There are three commitments Bidders can use to establish an Inclusion Plan — Aspirational WMBE Goals, Business Support Strategies, and WMBE Guarantees: 1. Aspirational WMBE Goals are goals Bidder believes can be achieved by good faith efforts. This option is worth a maximum of 6 points; 2. Business Support Strategies are those the Bidder commits to employ for qualified firms. This option is worth a maximum of 4 points; 3. WMBE Guarantees identify WMBE firms the Bidder guarantees to contract with for this project, with agreement reached about the work and pricing for the WMBE scope, including any terms and conditions important to the WMBE for their performance. This option is worth a maximum of 6 points. c. Work performed by a WMBE must be commercially useful and a distinct element of work that includes managing and supervising the work. The Contractor should evaluate the amount of work subcontracted, industry practices, and other relevant factors to determine whether the work is commercially useful. d. A Bidder scored less than 10 points will be deemed non -responsive. See Scoring section below. e. All dollars cited shall exclude sales tax (including references to the Total Bid Cost and estimates made by Prime when completing this form). 2. SCORING INSTRUCTIONS a. The average percentage of WMBE utilization on past City projects has been calculated by CPCS and is provided in the table below. This average is used to score the points that will be awarded for the aspirational goals and guarantees. These percentages are updated annually. Note that these averages include total WMBE utilization, not subcontracting alone, since aspirational goals may include prime self -performance. b. In addition to the Past Performance, scoring also recognizes an intent to exceed past performance by at least 2 percentage points above past performance. c. If the project is characterized by work of various types, CPCS may calculate a unique utilization rate for the project given the weight of each. CPCS determination is not subject to challenge. d. The project type and percentage of past WMBE utilization will be stated in the bids advertisement and documents. e. If past utilization for a project type was zero, an Aspirational Goal above two percent will receive 6 points. Bidder must still identify Business Support Strategies and Guarantees it is willing to employ and will be scored accordingly. f. Points awarded for WMBE Guarantees will be calculated based upon total available work for subcontract given past performance. This section can be awarded as many as 6 points. g. A Bidder who has received a formal Deficiency Report issued by the City as a result of unfulfilled WMBE Inclusion Plan commitments on past projects will lose one point from the total score. h. When calculations are used to evaluate the points, the City will calculate points to the nearest tenth decimal place. The City will round up to the nearest tenth. 3-6-17 31 Packet Pg. 458 2017 Roadway Facility Parks` Under Boundary Structural Paint Structural Natural Habitat Dredging Roof ground 3 year average Past performance 18% 23% 32% 19% 1 % 4% 4% 19% 10% 30% Note: Boundary refers to projects performed in Pend Oreille County (Boundary). Parks utilization rate excludes the mandatory self -performed WMBE work for a prime. 3. ASPIRATIONAL WMBE GOAL INSTRUCTIONS a. Aspirational WMBE Goals represent a serious commitment to use good faith efforts to reach the stated goals. b. The City will rely upon the Total WMBE Goal to determine responsiveness. The City will correct the Total WMBE Goal if that provided by the Bidder does not match the MBE and WBE goals. c. Aspirational WMBE Goals are a percentage of the Base Bid and during the course of the project will apply to the total contract amount including all contract change orders (additives, alternates and deductives). Contractor may seek a goal adjustment if such changes may merit a greater or lesser goal; CPCS will consider such requests, approve if appropriate, and modify the Plan accordingly. d. A WMBE Bidder may include in their goals and guarantees that percentage of contract base bid for work which the WMBE intends to self -perform that is in excess of the mandatory 30% they are otherwise required to perform as required by the City Specifications Section 1-08.1(3). e. Bidder will receive between 0 and 6 points for its Aspirational WMBE Goals, with proportional points based on a straight line formula to Past Performance (plus 2%) identified for the project as advertised in the bid solicitation. Bidder receives 3 points if the Total Aspirational Goal is half of Past Performance + 2%. Six points are awarded if the Bidder meets or exceeds Past Performance by 2 or more percentage points. For example, a project with Past Performance of 14%, would receive 3 points if the Total Aspirational Goal was 8% or 6 points if the Total Aspirational Goal was 16%. PA = 6A/(P + 2), Where PA = Points awarded for Bidder's Aspiration Goal A = Bidder's Aspiration Goal (%) P = Applicable Past Performance Trend (%) 4. BUSINESS SUPPORT STRATEGIES INSTRUCTIONS The Bidder may elect to provide the business support identified on Page 2 for qualified firms. The City will provide two points for each choice selected. There are two options, allowing a total of 4 points if both options are chosen: 1. Early Retainage Release. The prime and any sub -tier primes will release retainage held for the subcontractor, within thirty (30) days of acceptance of the work performed by the qualified subcontractor. 2. For mobilization, the Prime and any sub -tier primes will pay all qualified firms five days in advance of the on -site performance, except if a unique situation prohibits such as an emergency or event requiring an immediate mobilization response. In those events, the Prime (including any sub -tier primes) shall deliver the payment no later than 5 days after job mobilization begins. 5. WMBE GUARANTEE INSTRUCTIONS `a a. This guarantees the City and WMBE that they shall be used for at least the amount given, following the remaining Z rules below. A WMBE Guarantee expects the Bidder achieved agreement about scope, terms and cost of the work for the WMBE at bid time. The burden is upon the Bidder to resolve any differences, once the guarantee is given. W b. The Prime should clearly document in writing, agreements made with the WMBE firm upon which the guarantee was ca predicated, such as unit price or lump sum pricing as applicable, scope, terms or conditions, and subcontractor concurrence. This protects both parties when completing and executing the resultant subcontract before work begins. r c. The City may contact the WMBE firm or Prime after Bid opening to verify the firm has agreement to perform work as cT described in the plan. Failure to have agreement may result in rejection of the Inclusion Plan, rendering the Bid non- responsive. d. A bidder will receive between 0 and 6 points for WMBE Guarantees, receiving a proportional number of points based E on a straight line formula to Past Performance. A bidder will receive 3 points if the dollar -value of the Guarantees M equals half of the Past Performance percentage. Six points are awarded if the Bidder commitments meet or exceed Past Performance. Q Pc=6G/P Where Pc = Points awarded for Bidder's Guaranteed Goal 3-6-17 41 Packet Pg. 459 9.1.b G = Bidder's Guaranteed WMBE Goal (%) P = Applicable Past Performance Trend (%) e. A WMBE bidder may only include self -performed work above 30%. This is based on the self -performance minimum required by the City Specifications Section 1-08.1(3). f. Substitution of a Guaranteed WMBE firm is prohibited absent a waiver granted by the CPCS as a result of: 1. Bankruptcy of the WMBE firm; 2. Failure of the WMBE firm to provide the required bond; 3. The WMBE firm cannot perform the work because they are debarred, not properly licensed, does not meet the subcontractor approval criteria, or in some other way is ineligible to work; 4. Failure of the Subcontractor to comply with a requirement of law applicable to subcontracting; 5. Death or disability of the principal of the WMBE firm rendering it unable to perform the work; 6. Dissolution of the WMBE firm; 7. Failure of the WMBE firm to perform satisfactorily in previous projects not known to Bidder at the time of bid; 8. Failure or refusal of the WMBE to perform work for reasons other than contract term or pricing disputes; 9. A change in scope of the contract which removes the guaranteed work from the project. 10. WMBE Subcontractor does not execute an offered contract that reflects the terms and pricing that was agreed upon as a condition of the Guarantee. The Prime must evidence that the WMBE Subcontractor failed to execute a contract offered by the Prime which reflected such agreements, after the Subcontractor was given adequate time to execute the offered subcontract. 6. INCORPORATION OF PLAN INTO CONTRACT AND REPORTING REQUIREMENTS a. CPCS may discuss the Plan with the Apparent Successful Bidder before incorporating into the contract and may N amend the Plan by mutual consent. b. CPCS reserves the right to require a completed Social Equity Plan as a condition for contract execution if no WMBE guarantees are provided in order to demonstrate results of good faith efforts. C. The Contractor must provide reports and documents as required by CPCS within 15 days. W d. CPCS will evaluate Contractor's WMBE utilization throughout the project. uNi e. Contractor may not substitute a WMBE firm identified in the guaranteed portion of the plan unless the substitution is c approved by CPCS. Such a substitution will not be considered unless Contractor can demonstrate clear necessity for such substitution. A Contractor granted permission to substitute for a guaranteed WMBE firm shall use good m faith efforts to recruit another WMBE firm to perform the Work. f. If CPCS determines the Contractor is not making good faith efforts, it may take action as described in the project `0 specification such as withholding invoice payments and breach of contract. E g. The City will evaluate the WMBE utilization at close-out and may assign a Deficiency rating for failure to M 06 demonstrate good faith efforts. Deficient ratings are used by the City to determine Bidder responsibility on future work and debarment. To avoid a deficiency rating, the Contractor must demonstrate: 1. A good faith effort to achieve Aspirational goals. Attainment under 80% of the goal will likely be 0 considered deficient; 2. Timely submittal of required and requested materials and reports to CPCS; 3. Having advance agreements with each WMBE Guarantee, such that the WMBE understands and agrees that the WMBE Guarantee represents mutual agreement at time of the bid submittal; U 4. Using all "WMBE Guarantees" named in the Inclusion Plan, unless Prime received written authorization S from CPCS for substitution; W 5. WMBE relationships are harmonious, clearly communicated and free of undue dispute; and ca 6. WMBE work was commercially useful as defined above. M m r r m c a� E z U r Q 3-6-17 51 Packet Pg. 460 9.1.c APPENDIX C Snohomish County Consortium Affordable Housing Program Policies Please note that the HOME Policies in these comprehensive Policies have been superseded by the HOME Partnership Interim Policies and Procedures which are attached as Appendix D. Packet Pg. 461 9.1.c Snohomish County Community Development Block Grant Consortium HOME Program Consortium SNOHOMISH COUNTY AFFORDABLE HOUSING PROGRAM POLICIES Updated September 5, 2013 Packet Pg. 462 9.1.c AFFORDABLE HOUSING PROGRAM POLICIES TABLE OF CONTENTS PURPOSE......................................................................................................................1 ORGANIZATION & DEVELOPMENT......................................................................................1 RELATIONSHIP TO OTHER PLANS AND AGREEMENTS.........................................................1 THE SNOHOMISH COUNTY CONSORTIUM.................................................................2 CONSORTIUM MEMBERSHIP AND FUNDING..........................................................................2 ADMINISTRATION AND DECISION-MAKING...........................................................................3 THEFUNDING PROCESS....................................................................................................4 HOUSING ELIGIBILITY BY PROGRAM TYPE..........................................................................4 NON-SMOKING POLICY.....................................................................................................4 POLICIES BASED ON FEDERAL REQUIREMENTS..................................................................5 THE CDBG PROGRAM..................................................................................................5 OVERVIEW........................................................................................................................ 5 ELIGIBLE AND INELIGIBLE HOUSING ACTIVITIES..................................................................5 ELIGIBLE USERS OF COUNTY CDBG FUNDS.......................................................................6 OCCUPANCY..................................................................................................................... 7 AFFORDABILITY................................................................................................................ 8 RENTALHOUSING...........................................................................................................8 OWNERSHIP HOUSING.....................................................................................................8 LOCATIONAL REQUIREMENTS............................................................................................8 COUNTY POLICIES FOR CDBG-FUNDED HOUSING..............................................................8 HOUSING ALLOCATION OF CDBG FUNDS..........................................................................9 PERUNIT COSTS.............................................................................................................9 REHABILITATION STANDARDS...........................................................................................9 RENTINCREASES............................................................................................................9 Packet Pg. 463 9.1.c PAYMENT OF PRE -AWARD COSTS....................................................................................9 THE HOME PROGRAM................................................................................................10 OVERVIEW......................................................................................................................10 ELIGIBLE AND INELIGIBLE ACTIVITIES...............................................................................10 CAPITAL INVESTMENT OF HOME FUNDS......................................................................... 10 PROHIBITED ACTIVITIES................................................................................................. 11 ELIGIBLE APPLICANTS....................................................................................................11 COMMUNITY HOUSING DEVELOPMENT ORGANIZATION(CHDO)....................................... 11 SUBRECIPIENTS............................................................................................................ 13 DEVELOPERS, OWNERS, SPONSORS..............................................................................13 PROJECT BENEFICIARIES................................................................................................ 14 OVERALL REQUIREMENTS OF THE COUNTY'S HOME PROGRAM ........................................ 14 RENTAL PROJECT REQUIREMENTS................................................................................. 14 SUBSIDYPER UNIT.......................................................................................................14 HOME -ASSISTED UNITS................................................................................................. 14 HOUSING AFFORDABILITY AND OCCUPANCY REQUIREMENTS............................................15 AFFORDABILITY OF UNITS.............................................................................................. 15 OCCUPANCY REQUIREMENTS OF RENTAL HOUSING........................................................ 15 RENT INCREASES AND ANNUAL INCOME CERTIFICATIONS................................................ 15 DURATION OF LOW-INCOME BENEFIT............................................................................... 16 RENTALHOUSING......................................................................................................... 16 OWNERSHIPHOUSING................................................................................................... 16 MATCHINGFUNDS..........................................................................................................17 LAYERING REVIEW GUIDELINES.......................................................................................17 SITE AND NEIGHBORHOOD STANDARDS...........................................................................18 TENANT PROTECTIONS....................................................................................................18 Affordable Housing Policies " 9-6-12 Packet Pg. 464 9.1.c AFFIRMATIVE MARKETING...............................................................................................19 COUNTY POLICIES FOR USE OF HOME FUNDS FOR HOUSING...........................................19 BRIDGELOANS..............................................................................................................20 MINIMUM REHABILITATION STANDARDS...........................................................................20 RESALE AND RECAPTURE PROVISIONS............................................................................20 PAYMENT OF PRE -AWARD COSTS..................................................................................21 FEDERAL POLICIES FOR CDBG & HOME.................................................................23 ENVIRONMENTAL REVIEW...............................................................................................23 HISTORIC PROPERTIES....................................................................................................23 ACQUISITION, DISPLACEMENT, RELOCATION AND HOUSING REPLACEMENT .......................24 ACQUISITION................................................................................................................. 24 REAL PROPERTY ACQUISITION.......................................................................................24 DISPLACEMENT AND RELOCATION.................................................................................. 24 HOUSING REPLACEMENT...............................................................................................25 PROCUREMENT............................................................................................................... 25 FAIR HOUSING AND HANDICAPPED ACCESSIBILITY...........................................................27 EQUAL OPPORTUNITY AND WMBE UTILIZATION...............................................................27 EQUAL OPPORTUNITY...................................................................................................27 WOMEN -AND MINORITY -OWNED BUSINESS ENTERPRISES(WMBE)................................27 LABORSTANDARDS........................................................................................................ 27 LEAD -BASED PAINT........................................................................................................28 FLOOD INSURANCE.........................................................................................................28 USEOF VOLUNTEERS......................................................................................................28 PROGRAMINCOME..........................................................................................................29 CONFLICT OF INTEREST...................................................................................................30 THE AFFORDABLE HOUSING TRUST FUND (AHTF) PROGRAM ............................30 Affordable Housing Policies "' 9-6-12 Packet Pg. 465 9.1.c OVERVIEW...................................................................................................................... 30 ELIGIBLE AND INELIGIBLE ACTIVITIES...............................................................................30 INTERLOCAL AGREEMENTS............................................................................................ 31 FEES.............................................................................................................................. 31 ELIGIBLE APPLICANTS....................................................................................................31 PROJECT BENEFICIARIES................................................................................................32 RENTAL HOUSING REQUIREMENTS..................................................................................32 AFFORDABILITY OF UNITS.............................................................................................. 32 RENT INCREASES AND ANNUAL INCOME CERTIFICATIONS................................................ 32 OPERATING AND MAINTENANCE REQUIREMENTS FOR RENTAL HOUSING ........................... 33 DURATION OF LOW-INCOME BENEFIT...............................................................................33 AFFIRMATIVE MARKETING............................................................................................... 33 COUNTY POLICIES FOR USE OF AHTF RESOURCES.......................................................... 33 ENVIRONMENAL REVIEW AND DEVELOPMENT STANDARDS ............................................... 33 PROCUREMENT............................................................................................................. 34 STATE PREVAILING WAGE.............................................................................................34 LOCAL HOUSING POLICIES FOR CDBG, HOME, AHTF AND .1% SALES TAX ....... 34 APPLICATIONPROCESS..................................................................................................34 SITECONTROL............................................................................................................... 35 FORMSOF ASSISTANCE..................................................................................................35 HOUSINGPROJECTS.....................................................................................................35 HOUSINGPROGRAMS....................................................................................................36 CONTRACTING REQUIREMENTS.......................................................................................36 APPRAISAL REQUIREMENTS............................................................................................ 36 DEVELOPMENTFEES.......................................................................................................36 MIXED -USE PROJECTS....................................................................................................37 Affordable Housing Policies "' 9-6-12 Packet Pg. 466 9.1.c MANAGEMENT OF HOUSING UNITS...................................................................................38 MONITORING..................................................................................................................38 MONITORING DURING PROJECT DEVELOPMENT...............................................................38 ON -GOING MONITORING................................................................................................ 39 REPORTING..................................................................................................................... Local Housing Policies for.1 OF 1% SALES TAX PROGRAM................................40 Eligible Activities........................................................................................40 ProgramFocus..........................................................................................40 ProgramPriorities......................................................................................40 EligibleBorrowers......................................................................................41 Loan Rate, Term and Requirements............................................................................................42 ProjectCriteria...........................................................................................42 Affordable Housing Policies 9-6-12 Packet Pg. 467 9.1.c Purpose This document contains the policies which apply to the use of Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Snohomish County Affordable Housing Trust Fund (AHTF) and .1 % Sales Tax funds for housing projects and programs in Snohomish County. It has the following purposes: • To present housing policies related to the allocation of funds and the implementation of capital projects and programs • To explain the policy basis for various application and funding requirements • To set the policy context for the annual allocation of housing funds Organization & Development The document is organized into six major sections which describe: • The policy requirements for the use of HOME funds • The policy requirements for the use of CDBG funds for housing • Federal requirements which apply when either CDBG or HOME funds are used • The policy requirements for the use of AHTF funds • County housing policies not dictated by federal requirements • The policy requirements for the use of AHTF funds It was developed in conjunction with the jurisdictions that make up the Snohomish County Consortium, and public agencies and nonprofit organizations who utilize County housing funds. The process included: • the provision of written materials, including a draft outline, policy issue papers for major policies to be covered by the Plan, and the draft Plan; • a meeting to identify major policy issues; • two meetings to discuss policy issues and options; and • one meeting to comment on the draft Plan. Written materials and information about meetings were provided to 40 cities and organizations.' Relationship to Other Plans and Agreements There are other documents which also relate to the use of CDBG and HOME funds. They include the Snohomish County Urban County Consortium five- year Housing and °c Community Development Consolidated Plan and Annual Action Plans, the Snohomish N County Ten Year Plan to End Homelessness entitled Everyone at Home Now, the as E 1 This process was conducted 1998 for the development of the original policies. r a 2014 Affordable Housing Policies 1 Packet Pg. 468 9.1.c CDBG, HOME, and AHTF Interlocal Agreements, the Snohomish County Residential Antidisplacement & Relocation Assistance Plan, the Citizen Participation Plan, and the Snohomish County Comprehensive Plan. The Housing Policies included here are not intended to supersede any of these existing documents. Rather, these policies provide the implementation framework for the more general policies of the other plans. The Snohomish County Consortium Consortium Membership and Funding The Snohomish County Urban County Consortium (Consortium) is a partnership between Snohomish County and most of the cities and towns within the Snohomish County. The partnership is established through interlocal agreements. This partnership allows the Consortium, as an Urban County, to receive funding each year from the U.S. Department of Housing and Urban Development (HUD) as formula grants under the federal CDBG, HOME, and ESG programs. Funds received are used to meet the locally determined needs and priorities in the Consolidated Plan. The funding allocations are based on formulas which consider such factors as the number of low-income households, households paying more than 30% of their income for housing, and the amount of housing in need of rehabilitation in our local jurisdiction. Snohomish County is the applicant and grant recipient entity (lead agency) for these funds. In this capacity, Snohomish County is responsible for the overall administration, planning, monitoring, and reporting requirements for these programs on behalf of the Consortium. Snohomish County develops the required plans through a consultation and input process which allows for input from Consortium members, public and private agencies, and the general public. The CDBG Consortium (which includes CDBG, HOME, and ESG funds) includes the County and 18 cities and towns within the County and covers both the incorporated and unincorporated areas of the County. It does not include the City of Bothell or the City of Everett. The City of Bothell is split by the County line and partners with King County. The City of Everett receives CDBG funds directly from HUD and its share of ESG funds is included in the balance of state funds administered by the Washington State Department of Commerce. The City of Marysville is currently a member of this Consortium, but will no longer be a member effective July 1, 2012. As of that date, Marysville will become its own CDBG entitlement community and receive CDBG funds directly from HUD. Since 1993, the City of Everett and Snohomish County have also formed a Consortium for the receipt of HOME funds. The Interlocal Agreement between the City of Everett and the County results in an increased amount of HOME funding for our local community. The City of Marysville joined the HOME Consortium with the City of Everett and the County in 2011, which became effective July 1, 2012. A percentage of HOME funds received each year is set -aside for affordable housing projects located in the City of Everett which are selected by the City of Everett through its own project selection process. Final approval of these projects is made by the Snohomish County Council after county -wide citizen participation requirements are met. Projects located within the 2014 Affordable Housing Policies 2 Packet Pg. 469 9.1.c city of Marysville are eligible to compete for HOME funds through the Consortium's project selection process. The County and all the cities and towns within the County have entered into separate interlocal agreements for the administration of the AHTF program. AHTF funds are local funds generated from recording fees on certain real estate documents. The City of Everett receives a percentage set -aside of AHTF funds each year for affordable housing projects located within the City of Everett. The City of Everett selects projects for its portion of AHTF funds through it own project selection process. Administration and Decision -Making Every three years the jurisdictions renew their participation in the CDBG and HOME Consortiums. The CDBG and HOME Interlocal Agreements currently in place are self - renewing and the members in the Consortium are provided an opportunity to opt out of the Consortium every three years. The AHTF interlocal agreements are self -renewing every five years. The Interlocal Agreements describe the general administrative and decision -making structure of the Consortium. Representatives of Consortium cities and citizens participate in the decision -making process through the 28-member Technical Advisory Committee (TAC)2. The TAC's role is to review requests and make funding recommendations to the Policy Advisory Board (PAB). The PAB is made up of elected officials of the County and Consortium cities3. Policy and funding recommendations developed by the PAB are reviewed and recommended by the Executive and are acted on by the Snohomish County Council. Snohomish County administers all funds on behalf of the Consortium through its Human Services Department and the Office of Housing and Community Development and the Office of Homeless and Community Services within this Department. The County's administrative responsibilities include, but are not limited to: • Preparing a Consolidated Plan every five years which identifies local affordable housing and community development needs, and establishes priorities for the use of funds from several federal programs, including CDBG and HOME • Reviewing fund requests and managing the fund allocation process 2 The TAC is made up of representatives of the participating local governments, two representatives of the County, a representative of the County's Housing Authority, and citizens representing low-income persons, handicapped persons, minority persons, and the elderly. 3 The PAB is comprised of: 1) County Executive or designee; 2) three members of the County Council; 3) one mayor or council member from a city with a population of 10,000 or more; 4) one mayor or councilmember from a city with a population between 3,000 and 10,000; 5) one mayor or councilmember from a city/town with a population of less than 3,000; 6) one mayor or councilmember selected at large; and 7) one citizen selected and appointed by the other eight members of the PAB to serve as ex officio Chairperson. 2014 Affordable Housing Policies 3 Packet Pg. 470 9.1.c • Preparing an Annual Action Plan that includes project descriptions and award amounts • Contracting with fund recipients • Monitoring the implementation of projects for compliance with federal requirements • Preparing an annual performance and evaluation report on program activities • Fiscal management of the funds • Managing the required citizen participation process The Funding Process The County solicits competitive proposals through an annual application process. Applicants may apply for funds to develop projects or to operate housing programs which benefit low- and/or moderate -income households. Potential applicants are notified of availability of funds through the publication and mailing of a Notice of Fund Availability (NOFA). The funding evaluation criteria are established and approved by the PAB and are included in the applications Applications are reviewed for eligibility, analysis of technical issues, and compliance with funding criteria by County staff. Proposals are scored against the funding criteria and ranked by the TAC, which then makes funding recommendations to the PAB. The PAB reviews the TAC recommendations and makes final funding recommendations, which are, reviewed and recommended by the County Executive, then sent to the County Council. The County Council makes final funding decisions. Prior to the Council making final funding decision, the recommendations are published for a 30 day public review and comment period. Any comments received are taken into consideration before awards are made. Awards for CDBG, HOME, and ESG fund are contained in the Annual Action Plan approved by the County Council each year. Awards for AHTF projects are awarded separately. Household Income Eligibility by Program Type for HOME & AHTF Projects Household income eligibility for HOME rental housing projects and homeowner housing rehabilitation programs will be determined based on the Part 5 (Section 8) income definition. Household income eligibility for HOME homeownership purchase assistance programs will be determined based on the 1040 IRS income definition. Non -Smoking Policy A Non Smoking policy was implemented and made effective beginning with the 2012 program year funding round for capital housing projects. The policy is authorized by County Council Motion No. 10-425, and further outlined in more specific detail in the Non -Smoking Policy 2011 #1 approved by the PAB in September 2011. To encourage indoor non-smoking policies, funding incentive bonus points, equal to approximately four percent, will be added to the application evaluation points by each TAC member rating the project, if the applicant meets the County's non-smoking policy criteria. 2014 Affordable Housing Policies 4 Packet Pg. 471 9.1.c Policies Based on Federal Requirements The majority of policies which govern how the County's housing funds can be used are based on the federal regulations which apply to the CDBG and HOME programs. Both programs have extensive requirements which dictate basic policies such as eligible uses of funds, eligible applicants, income levels of beneficiaries, rent levels, and types of assistance which can be provided. The basic federal requirements are summarized in the following two sections. The purpose of these sections is to provide an overview of the federal requirements, rather than a full recitation of the regulations. Potential program/project sponsors should be acquainted with the federal regulations before preparing an application for funding. The regulations governing the HOME Program can be found in the Code of the Federal Register (CFR), Section 24, Part 92. Regulations for the CDBG Program are at 24 CFR, Part 570. The CDBG Program Overview The CDBG Program provides funds for a variety of activities to address the needs of low- and moderate -income households. CDBG funds can be used for public facilities (i.e. community centers, sidewalks, sewer systems), public services, economic development activities, and some housing projects and programs. All activities funded with CDBG funds must meet one of the following three national objectives: • Benefit to low- and moderate -income persons • Aid in the prevention of slums and blight • Meet a need having a particular urgency Housing activities are generally qualified as eligible under the objective of benefiting low - and moderate -income persons. The program defines low-income households as those earning less than 50% of the area median income. Moderate -income households are those earning less than 80% of the median income. (The current income guidelines will always be included in the application for funds or can be obtained from the Office of Housing and Community Development.) Eligible and Ineligible Housing Activities CDBG-eligible housing activities include: • Emergency shelter • Transitional housing • Special needs housing such as group homes and nursing homes • Permanent rental housing • Assistance for homeowners 2014 Affordable Housing Policies 5 Packet Pg. 472 9.1.c CDBG fund can be used to fund a single housing project, as well as a housing program which delivers assistance to multiple housing projects, typically single family homes. The County has, historically, used CDBG funds for both projects and programs. Specific eligible uses of funds differ for the various housing activities listed above. Eligible uses are summarized below. For all activities, the costs of either 1) the temporary or permanent relocation of residents, or 2) project -related development costs are eligible uses of CDBG funds. Eligible uses of funds for housing to serve homeless persons and people with special needs are: • New construction of shelter/housing • Acquisition and/or rehabilitation of shelter/housing • Conversion of non -housing facilities to shelter/housing CDBG funds may be used to provide permanent rental housing in the following ways: Acquisition and/or rehabilitation in which 51 % or more of the units will be affordable to and rented by income eligible households • Rehabilitation of publicly owned housing Activities "in support" of new construction of permanent housing including acquisition, clearance, provision of public improvements and predevelopment expenses (excluding preparation of detailed construction drawings and plans) Homeowners can be assisted through the provision of: • Rehabilitation assistance for existing homeowners (including mobile homes) • Home purchase assistance including providing acquisition financing, paying up to 50% of the required down payment, or paying closing costs Ineligible housing activities under the CDBG program are: • New construction of permanent housing4 Provision of rent subsidies5 Eligible users of County CDBG Funds 4 An exception is new construction of housing carried out by a Community Based Development Organization (CBDO) as part of a recognized neighborhood revitalization strategy. CBDOs are organized to carry out community development activities in a specific area and to address the social and physical environment focusing on the needs of low- and moderate -income people. 5 Rental assistance payments can be eligible in an emergency situation, for no longer than three months. However, the County does not use CDBG funds for this purpose 2014 Affordable Housing Policies 6 Packet Pg. 473 9.1.c Public, nonprofit, and for -profit entities are all eligible users of CDBG funds for housing. There are, however, some limitations on the uses of CDBG funds by certain of the potential eligible users. The following table summarizes the housing activities which can be carried out by eligible recipients of CDBG funds6. ELIGIBLE ACTIVITIES Emergency Special Permanen Support of Owner Purchase ELIGIBLE Shelter, Needs t Rental New Rehab Assistanc FUND Transitional Housing Housing Constructi e USERS Housing on Cities/ County Departmen is Housing Authorities Nonprofit Entities For -profit Entities Entities with previous experience with CDBG funds for housing should schedule a meeting with County staff to review their project/program concept and understand if, and how, funds might be used. Occupancy CDBG funds generally must be used for projects/programs in which 51 %, or more, of the beneficiaries will have incomes below 80% of the area median income. HUD periodically publishes income guidelines which establish the maximum allowable income, by family size. The applicable income guidelines will be published in the application for housing funds. 6 Some entities are technically eligible to receive funding for the activities shown in the table, but have historically not used CDBG funds for housing. For example, cities and towns usually support the housing activities of the Housing Authority and nonprofit housing agency, rather than applying directly for funds. For -profit entities have not typically applied due to the multiple federal requirements and long term rent regulations that apply to the use of funds. 2014 Affordable Housing Policies 7 Packet Pg. 474 9.1.c In limited circumstances, CDBG funds may be used for rental housing projects in which less than 51 % of the units will be affordable and rented to eligible households. These circumstances include when: • assistance is to reduce the development cost of new construction of multifamily, non -elderly housing (acquisition, site assemblage, clearance, site improvements, and public improvements), 20% or more of the units will be occupied by eligible, low- or moderate -income households, and • the amount of CDBG funds as a percentage of the total development cost of the project does not exceed the proportion of total units which will be occupied by income -eligible tenants. Affordability Rental Housing CDBG-assisted rental housing must be affordable to, and rented to, low- and moderate - income households. The County's standard for affordability is the same as the federal affordability standard. Rental housing units are considered affordable when households pay no more than 30% of their income for rent and utilities. Rents in CDBG-assisted units may be set to address affordability for 1) households based on their individual incomes, or 2) households within specific income groups'. Ownership housing There is no specific affordability requirement related to CDBG-funded homeownership activities. Homeownership is typically thought to be affordable when owners pay 28% to 35% of their monthly income for PITI (mortgage principal, mortgage interest, taxes, and insurance). Locational Requirements CDBG funds awarded to the Consortium generally can be used only for projects/programs located in the County, outside of Everett and Marysville. Everett and Marysville receives its own CDBG funding. It is not considered part of the CDBG Consortium for purposes of providing or rehabilitating housing with CDBG funds. The exception to this regulation is any housing activity which the County has determined will benefit County residents (other than Everett and Marysville residents) proportionally to the amount of funding provided, and will further one of the County's housing objectives. County Policies for CDBG-Funded Housing 7 For example, in a project intended to serve households with 50% or less of the r median income, the maximum rent, including utilities, would be set at 30% of 50% of median income. In this example, a household earning 45% of the median income is E eligible to rent a unit, but would pay slightly over 30% of income in housing costs. r a 2014 Affordable Housing Policies 8 Packet Pg. 475 9.1.c The following policies which apply to the use of CDBG funds for housing are not required by federal regulations, but have been adopted by the Consortium. Housing allocation of CDBG Funds At least 45% of the annual amount of CDBG funds available for capital projects$ will be set aside for housing projects/programs. Per unit costs No minimum or maximum cost per unit will apply to the County's investment of CDBG funds in housing projects/programs. This will allow CDBG funds to be used 1) with other public funds where the maximum cost per unit is not enough to accomplish the project, or 2) where emergency and/or minor home repairs are being provided. Rehabilitation Standards The County has not adopted a specific rehabilitation standard for the use of CDBG funds, so as not to limit the flexibility the funds provide to address a variety of rehabilitation situations. For projects involving moderate to substantial rehabilitation, project sponsors will be expected to provide quality housing that will last for 20 to 40 years. Rehabilitation requirements will be flexible to accommodate a variety of unit and building types. Rehabilitation work should largely focus on repair/ replacement of major building systems necessary to insure viable, long-term housing. In addition, overall design of the project and proposed improvements must be appropriate to the tenants to be housed. CDBG funds will also be available for housing activities which are intended to address situations such as providing emergency repairs, repairs which allow weatherization, or minor home repairs. Rent Increases When CDBG funds are awarded for the provision of permanent rental housing, an approved rent schedule for the CDBG-assisted units will be included in the contract documents. Rents will be considered affordable if they include a monthly utility allowance and represent 30% of monthly income for households in the income groups intended to be served. Subsequent rent increases should be based on increased operating costs of the project and reported to the County through the recipient's annual report (see Monitoring, page 42). Payment of pre -award costs At the County's discretion, CDBG funds can be used to reimburse the project/program sponsor for cost incurred prior to the award of funds to the project. The County will reimburse such costs so long as: 8 Twenty percent (20%) of the annual CDBG entitlement is budgeted for administrative costs and 15% is set -aside for funding of public services. The 45% housing allocation is calculated on the balance. 2014 Affordable Housing Policies 9 Packet Pg. 476 9.1.c • they represent eligible uses of CDBG funds, and • if they are for items or services procured in compliance with the procurement requirements (page 26). The HOME Program Overview The HOME Program was established in 1992. The national objectives of the program are: • Provide decent, affordable housing for low-income households • Develop the capacity of nonprofit housing agencies to address the housing needs of low-income households • Provide funding for state and local governments to address low-income housing needs • Leverage private sector participation Only housing -related activities can be funded with HOME funds. All HOME -assisted units must provide housing for households with incomes of less than 80% of the area median income, and for certain activities, a portion of the funds must provide housing for households with less than 50% of the area median income. Eligible and Ineligible Activities HOME Program funds can be used for a wide range of housing projects and programs These include: • Transitional housing and permanent rental housing • Tenant -based rental assistance • Home rehabilitation assistance for low- and moderate -income homeowners • Home purchase assistance Capital investment of HOME funds With the exception of tenant -based rental assistance and operating assistance for certain types of nonprofit organizations, HOME funds must be used for capital investments in housing. There are a variety of capital costs which can be paid with HOME funds. These include: • New construction, rehabilitation, and reconstruction (rebuilding housing on the same lot where it was located at the time funds were committed to the project) • Conversion of a non-residential structure to housing • Acquisition of standard units or those in need of rehabilitation 2014 Affordable Housing Policies 10 Packet Pg. 477 9.1.c • Acquisition of vacant land or demolition of existing housing, if construction of new housing will begin within 12 months • On -site infrastructure improvements and off -site utility connections • Relocation costs • Refinancing of existing debt on single-family, owner -occupied housing in conjunction with rehabilitation • Capitalization of project reserves to fund initial operating deficits of rental housing projects for a period of up to 18 months • Project -related development costs (predevelopment expenses, professional services, financing costs, development fees, etc.) Prohibited Activities Ineligible uses of HOME funds are: • Rehabilitation of public housing • Project -based rental assistance • Acquisition/rehabilitation of commercial facilities • Project reserve accounts • Provision of matching funds for other programs • Properties previously funded through the Low Income Housing Preservation and Resident Homeownership Act (LIHPRHA) or the Emergency Low -Income Preservation Act (ELIHPA), unless the funds are used to assist a nonprofit organization to purchase such a property • No additional funds may be provided to a previously HOME -assisted project after one year from project completion • Acquisition of County -owned property unless the property was specifically purchased with other funds for a HOME project • * (New) federal requirements effective program year 2012 and anticipated to remain in place for 2013 requires HOME funded projects to be completed and occupied no more than four (4) year from the date of contract execution. Eligible Applicants Public agencies, nonprofit organizations, and for -profit entities are all eligible to apply to the County for HOME funds. Fund recipients are classified into one of three categories. Community Housing Development Organization (CHDO) CHDO Certification 2014 Affordable Housing Policies 11 Packet Pg. 478 9.1.c A CHDO is a private nonprofit organization which meets certain specific criteria, including having 1) IRS tax exempt status, 2) a mission/purpose related to housing and service to a low-income community, and 3) a board composition which includes one-third low-income residents or their representatives. Organizations must apply to the County for CHDO certification or re -recertification annually. In certifying CHDOs, Snohomish County will give priority to agencies that plan to produce HOME housing projects annually or at least every two years in order to increase the production of affordable housing in Snohomish County. Agencies that occasionally develop affordable housing projects will be encouraged to use the County and CHDO's staff to provide technical assistance for their projects. Pre -development loan funds are available from other sources. CHDO's must continue to meet all the HOME/CHDO requirements as well as the following: (1) Have a proven track record of developing housing, with three or more projects during the preceding 5 years; (2) Have the administrative and financial capacity to develop housing; (3) Not have findings from HUD or the County when their work is monitored or reviewed; (4) Would be willing to participate in Snohomish County activities in terms of planning and, (5) Have the capacity to help some of the other organizations. Capital Funds for CHDO's Federal HOME regulations require that at least 15% of the HOME allocation be set aside to fund projects to be developed, owned, or sponsored by CHDOs. Up to 10% of the set aside can be used for project specific predevelopment loans to assure that CHDOs have access to funding for the "up front" costs of developing a project. It is the County's policy to consider requests for predevelopment loans on a case -by -case basis. Operatinq Funds for CHDO's The County also has the option of using up to 5% of the HOME allocation to assist CHDOs with general operating costs. Eligible costs are defined as: "reasonable and necessary costs for the operation of the community housing development organization. Such costs include salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; equipment; materials and supplies." The County can only fund a CHDO for operations if that CHDO is also receiving HOME °c capital funds, or is expected to receive capital funds within two years. However, these N operating funds are not a supplemental funding source for the HOME project which qualifies the CHDO for the operating funds program. Project -specific costs of the type E r a 2014 Affordable Housing Policies 12 Packet Pg. 479 9.1.c described above should either be identified specifically in the project budget or are compensated by way of the project Developer Fee. Snohomish County currently makes up to 5% of HOME funds available for CHDO Operating Support Grants.9 The County annually invites existing and potential CHDO's to submit an application for operating support funds which requests an amount of operating funds and specifies how they will be used and explains how the funds will support or build the CHDO's capacity to develop HOME -assisted units which are underway or expected within the next two years. Of the up to five percent (5%) set -aside for CHDO Operating Grant funding: The funding will be awarded to active CHDOs that have a current HOME project or that can show that they will have a HOME project within 24 months of funding. If a CHDO Operating Support Grant is awarded and the agency does not have a HOME project by the time the CHDO contract is executed, the funds will be withdrawn. Subrecipients A subrecipient is a public agency or nonprofit organization selected by the County to run a portion of the HOME Program. When a CHDO is also a subrecipient, the use of funds does not count toward the required 15% set -aside for CHDOs. The current subrecipients are the City of Everett and HomeSight. The County sets aside 21 percent of HOME funds each year for eligible affordable housing projects located in the City of Everett which are selected by the City of Everett through its project selection process, with final approval by the County Council. HomeSight provides down payment assistance to first- time, low-income homebuyers. Developers, Owners, Sponsors Individuals, for -profit entities, housing authorities, nonprofit organizations, and CHDOs can receive HOME funds in the roles of developers, owners, and sponsors of eligible activities. The following table illustrates the type of applicants who typically carry out the various HOME activities. ELIGIBLE ACTIVITIES Transitional Permanent Rental Housing, Housing (new TBRA Owner Purchase ELIGIBLE Special Needs construction and Rehab Assistance FUND USERS Housing rehabilitation) Public Agencies CHDOs Housing Authorities 9 The 5 % is for operating, not capacity building. 2014 Affordable Housing Policies 13 Packet Pg. 480 9.1.c Nonprofit Entities For -profit Entities10 Project Beneficiaries Overall requirements of the County's Home Program All HOME funds must benefit households with incomes at, or below, 80% of the median income. Ninety percent (90%) of funds used for rental housing and tenant -based rental assistance must benefit households with incomes which do not exceed 60% of the area median income. Rental Project Requirements For projects with 5 or more units, at least 20% of the HOME -assisted units must be affordable and rented to households with incomes of less than 50% of the area median incomes. Minimum and Maximum Per Unit Subsidy The HOME program established a required minimum HOME investment of $1,000 per unit. The HOME program also establishes the maximum amount of HOME funds which can be invested in a unit. The maximum per unit subsidy amounts are established by HUD for the County and updated annually. The current limits will be published in the County's application for funding. For multi -family properties, the maximum subsidy is based on the number of bedrooms in a unit. For single family properties (defined as 1 - 4 unit properties), the maximum amount of HOME funds which can be invested is based on the after -construction, or after -rehabilitation value of the property Home -assisted Units The HOME Program distinguishes between the units in a project/program which are HOME -assisted and those which are not. For example, if in a 20 unit project, only 10 of the units are designated as HOME -assisted, the HOME Program requirements would apply only to those units. Establishing the number of HOME -assisted units is based on the amount of HOME funds in the project, the maximum allowable cost per unit, and the total development cost per unit. The minimum number of HOME -assisted units must be proportional to the amount of County HOME funds in the project. For example, in a 20-unit project where 25% of eligible costs will be provided by HOME funds, at least 5 units must be HOME - to Tax credit partnerships are considered to be for -profit entities due to the participation of the limited partners. 2014 Affordable Housing Policies 14 Packet Pg. 481 9.1.c assisted. In addition, the total HOME investment divided by 5 cannot exceed the 1) maximum allowable subsidy per unit, or 2) the total development cost per unit. The formula for determining the number of required HOME units in a project will round up to the nearest whole number. If all units in a project are comparable, then the costs of HOME -assisted and other units can be treated the same. If the units are not comparable (i.e. size, view, amenities) then the actual costs must be determined and allocated on a unit -by -unit basis. The HOME -assisted units must be designated at the time of the commitment of HOME funds to the project/program. They may be: • fixed --the specific units are designated and cannot change in the future, or floating --the specific HOME -assisted units can change overtime as long as the number of HOME -assisted units remains the same. Housing Affordability and Occupancy Requirements Affordability of Units Housing units are considered affordable when tenants pay no more than 30% of their income for rent and utilities. There is not a comparable HOME standard for homebuyers. Mortgage underwriting for homeownership is typically based on buyers paying 28% to 35% of their monthly income for PITI (mortgage principal, mortgage interest, taxes, and insurance). The HOME program establishes two types of rents. The applicable maximum rents for each category will be published in the County's application for funds. High HOME Rents are equal to 30% of income for a household at 65% of the median income, or the HUD -established Fair Market Rent, whichever is less. • Low HOME Rents are equal to 30% of income for a household at 50% of the median income. Occupancy Requirements of Rental Housing The HOME program also has occupancy requirements. Initial occupancy of 90% of the rental units assisted with County HOME funds must be by households with no more than 60% of the median income. Twenty percent (20%) of the units in HOME -assisted projects with more than 5 units must be occupied by households with no more than 50% of the median income. Rent Increases and Annual Income Certifications Owners may raise rents in conformance with increases in the published High and Low HOME rents. New rents are published by HUD approximately annually. (Owners may also be required to lower rents if the published rents decrease.) Occupants of HOME -assisted units must be recertified as income eligible on an annual; basis. If a households' income has changed, the owner may increase or decrease the rent, while maintaining the agreed upon number of units renting in the High and Low E HOME rent categories. If a unit moves from one category to the other, the rent for the r a 2014 Affordable Housing Policies 15 Packet Pg. 482 9.1.c next available unit must be set so as to bring number of units back into compliance. If a household's income goes above 80% of the median income, the rent must be raised to the market rate. Duration of Low -Income Benefit Rental Housing For rental housing, the HOME Program requires that units be affordable to the intended income group for periods of time commensurate with the amount of HOME funds invested and the type of project. This requirement is referred to as the period of affordability. The following table shows the relationship between the amount of the HOME investment, the project activity and the required period of affordability. PROJECT/ACTIVITY HOME $ PER UNIT/PERIOD OF AFFORDABILITY Acquisition, acquisition & rehabilitation, <$15,000 per unit/5 years or rehabilitation of existing housing $15,000 to $40,000 per unit/10 years >$40,000 per unit/15 years New construction or acquisition of Any amount of funds/20 years newly constructed housing Ownership Housing There is no long-term affordability requirement when HOME funds are used to assist low-income owners of existing housing to repair their homes. When HOME funds are used to assist an income eligible buyer to purchase a home, there are requirements for long-term affordability similar to those for rental housing. AMOUNT OF HOME FUNDS REQUIRED PERIOD OF AFFORDABILITY <$15,000 5 years $15,000 - $40,000 10 years >$40,000 15 years 2014 Affordable Housing Policies 16 Packet Pg. 483 9.1.c When HOME funds are used to assist with home purchase, there are requirements related to what happens when the HOME -assisted unit is sold. They are summarized in the section on resale and recapture of funds on page 22. Matching Funds The County is required to match at least 25% of the HOME funds which are spent on projects/programs. "Match" can be provided through cash, assets, services, labor and other contributions of value to the County's HOME program. Federal resources (i.e. CDBG funds) are not an eligible source of match. Match does not have to be provided on a project -by -project basis. The match requirement applies to the expenditure of HOME funds on projects/programs in a given federal fiscal year (October 1 - September 30). Eligible sources of matching funds include: • Cash from a non-federal source • Value of waived taxes, fees, or charges • Value of donated land • Cost of infrastructure improvements • 25% to 50% (depending on the type of bonds) of the proceeds of government issued housing bonds provided as a loan to a project • Value of donated materials, equipment, labor, or professional services • Sweat equity • Costs of supportive services for residents of HOME projects • Cost of homebuyer counseling services The County is responsible for calculating match credits and providing the required 0 a. information to HUD. E From 1995 - 2010, the County's HOME Program has been exempt from the match V_ requirements because of the County's designation as a flood disaster area. During that time, the County has been able to "bank" match credits when HOME projects/programs 0 have included funds from eligible sources of match. The credits can be used to meet the match obligation for the future funding years. 3 The County will not require that each project include funds from an eligible source of L) HOME match. However, additional points for match will be awarded in the scoring of N projects/programs by the TAC to encourage the use of eligible matching funds. E 0 Layering Review Guidelines 0 The County must determine that no more than the necessary amount of HOME funds, in in combination with other governmental funds, are invested in rental housing and homeownership projects. The procedure for making this determination is the layering review. 0 r a 2014 Affordable Housing Policies 17 Packet Pg. 484 9.1.c The layering review will be conducted for those projects which include state or other public funds. It will take place as part of the review of applications for County funding and again at the time of funding commitment. The per subsidy limit review formula will round -up to the nearest whole number. The review will consider the sources and uses of funds proposed for a project, the reasonableness of project development costs, the proposed project operating costs, and the amount of cash flow generated over time. The layering review will determine if excess HOME funds are being requested based on an evaluation of cash -on -cash return on equity. The application for funding will require all of the following information which is needed to conduct the layering review. • A statement of sources and uses, committed and proposed • An annotated development budget • An annotated operating budget • A 15 to 20 year operating pro forma In reviewing applications for capital projects, the County staff will prepare a Capital Subsidy Layering Review Form, using the above elements for each capital project submitted. They will bring the review up to date prior to executing the contract for the project and will file the review in the project folder as the documentation for the Capital Subsidy Layering Review. Subsidy Layering also applies to homebuyer units with multiple government funding awards. The County allows agencies providing purchase assistance to conduct their own screening and loan underwriting for first-time homebuyers, so long as the underwriting procedures are substantially consistent with the following procedures and policy requirements. Each Homeownership subrecipient must provide a copy of their underwriting procedures and policy requirements that must be approved by the County in advance of executing a HOME agreement with the County. Agencies will complete a Mortgage Subsidy Layering Worksheet provided by the County prior to executing a home loan using mortgage assistance from more than one government agency with the prospective homebuyer and will submit it to the County for approval. The County staff will review each Mortgage Subsidy Layering Worksheet to ensure that there is not an excess of HOME funds awarded to homebuyers. After receiving County approval, an Agency may proceed with the loan. The subsidy layering review documentation for each homeowner loan will be maintained in each Agency's Project folder. Site and Neighborhood Standards The units provided with HOME funds should promote housing choice and opportunity for low- and moderate -income County residents. To address that goal, the HOME Program requires that new construction of rental housing not contribute to existing concentrations of minority or assisted households. Tenant Protections 2014 Affordable Housing Policies 18 Packet Pg. 485 9.1.c Tenants must be afforded certain protections in any HOME -assisted project. The major tenant protections include the following provisions: • leases must be for a minimum of one year unless mutually agreed to by the owner and tenant, • an owner may not terminate tenancy or refuse to renew the lease except for violations of the terms of the lease or for violation of applicable federal, state, or local law, and, • an owner must have written tenant selection policies and criteria that are consistent with the purpose of providing housing for the very low-income and low-income families. Affirmative Marketing As part of the application process, project sponsors will be asked to describe their affirmative marketing plan for the HOME -assisted units. The affirmative marketing plan must include information on how: • the sponsor will inform the public and potential residents about fair housing laws, • the sponsor will affirmatively market the units and inform persons who might not normally apply for housing through special outreach, • the sponsor will document affirmative marketing efforts and evaluate their success. Federal Year 2012 Appropriation Requirements Congress passed new requirements for the HOME Program effective with the federal year 2012 appropriations. There is a strong possibility that they will be included in the 2013 federal appropriations or incorporated in the proposed new HOME rule. The requirements are: 1. Four year completion date for HOME funds starting at the time of contract execution. 2. Project certification: assessment of enhanced project underwriting, developer capacity and demonstration of market need for both rental housing and homeownership units. 3. Deadline of six months for sale of newly constructed homebuyer units 4. CHDO development capacity The County will be developing policies and procedures for all four requirements. County Policies for Use of HOME Funds for Housing The following policies which apply to the use of HOME funds are not required by federal regulations, but have been adopted by the Consortium. 2014 Affordable Housing Policies 19 Packet Pg. 486 9.1.c Bridge loans Repayment of a bridge loan is an eligible use of HOME funds. (It is not an eligible use of CDBG funds.) In order to be considered for use of County HOME funds the bridge financing must meet the following criteria: • is secured against the real property to be assisted with HOME funds, • is documented in ways which make it clear that it is interim, not permanent financing, • was part of the original financing for the project, • was used to pay HOME -eligible costs, • must be repaid no more than 5 years from the time of closing, and, • was provided by a public or private lender, or by the seller of the HOME -assisted property. Minimum rehabilitation Standards The HOME Program requires the County to have a minimum housing rehabilitation standard for use of HOME funds. In the absence of a local rehabilitation standard, the County can adopt the Section 8 Housing Quality Standards (HQS) as the minimum standard. The County has identified the HQS as the required minimum standard. In addition to the minimum requirements of the HQS, for projects involving moderate to substantial rehabilitation, project sponsors will be expected to provide quality housing that will last for 20 to 40 years. Rehabilitation requirements will be flexible to accommodate a variety of unit and building types. Rehabilitation work should largely focus on repair/replacement of major building systems necessary to insure viable, long- term housing. In addition, overall design of the project and proposed improvements must be appropriate to the tenants to be housed. Resale and recapture provisions Resale and recapture provisions apply to the use of HOME funds for homebuyer assistance programs. Snohomish County will allow for the use of either resale or recapture provisions, as appropriate. Resale or recapture provisions are triggered when, during the period of affordability, the housing ceases to be the principal residence of the buyer who was assisted with HOME funds. Entities applying for funding for homebuyer assistance projects/programs will be required to schedule a pre -application conference with County staff to insure that projects/programs are designed to adequately address the resale and recapture provisions and that the applicant understands the requirements for return of recaptured funds to the County. Applicants for HOME funding will need to propose resale or recapture provisions at the time of application for funding, and demonstrate how the provisions are consistent with E the following resale or recapture guidelines. r a 2014 Affordable Housing Policies 20 Packet Pg. 487 9.1.c Resale Guidelines Resale provisions must be used in situations where HOME funding will be provided as development subsidies" and where assistance is provided to homebuyers in the form of grants. Resale provisions may be used in other instances as well. When resale provisions are proposed, they must ensure that: • the property will be sold to a low-income buyer who will use the property as a principal residence, • the price at resale will provide the original HOME -assisted buyer with a fair return on their original and any subsequent investments in the property, and • the housing will continue to be affordable throughout the period of affordability to a range of low-income buyers. Recapture Guidelines Recapture provisions will be used when the home is purchased with the use of HOME funds as financial assistance that reduces the purchase price for the homebuyer or as gap financing, and is no longer the homebuyer's principal residence during the period of affordability. The County has selected the following option for HOME funds recaptured - Recapture Entire Direct HOME Subsidy Method is as follows: In the event of recapture Snohomish County or subrecipient shall collect from the Net Proceeds all of the HOME Funds, including outstanding principal, plus interest, plus shared appreciation as outlined in the Loan Documents. In the event that net proceeds are insufficient to repay the HOME Funds, the amount to be recaptured shall be any funds remaining after payment of all superior non -HOME debt and closing costs that are subtracted from the sale price of the home. In no event shall the borrower be required to use funds other than net proceeds to repay the HOME Funds. The County will be responsible for the enforcement of the recapture provisions and will require the subrecipient to obtain the recaptured funds from the homeowner. Recaptured funds must be used by the subrecipient for other eligible HOME activities or return to the County. The subrecipient is responsible to monitor to ensure that the homeowners continue to use the home as their primary residence. The County must be notified of any possible foreclosures or transfers in lieu of foreclosure during the period of affordability to help ensure that the resale and recapture provisions are followed. The County will recoup any net proceeds from available funds due to foreclosure. Authorization and payment of pre -award costs 11 A development subsidy results when the cost of constructing or rehabilitating a unit is more than the appraised value of the unit upon completion. 2014 Affordable Housing Policies 21 Packet Pg. 488 9.1.c At the County's discretion, HOME funds may be used to reimburse the project/program sponsor for costs incurred after the award of funds to the project in an approved Annual Action Plan and prior to the effective date of the County's annual HOME Agreement for that year of funding, subject to certain conditions. The County will reimburse such project costs so long as the costs meet all regulatory requirements, including but not limited to, environmental review requirements, the costs represent eligible uses of HOME funds, the Agency has received written authorization from the County prior to incurring the costs, and the costs are within the allowable amount of pre -award costs allowed under the regulations Use of Architect and Engineer for Housing Capital (HOME, CDBG & AHTF) Projects Single Residential Unit to Four Unit Residential Structures The County strongly encourages the use of a licensed and insured architect or engineer to administer/manage new construction projects and/or rehabilitation projects that involve structural integrity and other scopes of work that could impact safety. All housing capital projects shall use the services of a licensed and insured professional architect to render plans or the plans must be stamped by an engineer. If the project will be using design plans (blueprints) from a previously contracted project, those plans must be used with permission from the Author & County, it must meet current code requirements as specified above and have been provided by a licensed architect or engineering firm. • The contracting Agency (Agency receiving County funds) shall require all architectural firms subcontracted for services certify that they are authorized to do business in the state of Washington by providing a copy of their license and they are in full compliance with the requirements of the Board of Professional Registration and Washington state laws. • The contracting Agency shall require that all architectural or engineering firms be covered by errors and omissions insurance in an amount not less than $1,000,000. Residential Structures Five Units and Larger or Public Facility & Infrastructure: (Projects within this classification include all of the above provisions, plus the following requirements) The County requires the use of a licensed and insured architect or engineer to both certify design of plans and to administer/manage the project. Method for Determining Household Income HUD allows Participating Jurisdictions (PJ's) to choose from three different methods of in determining income eligibility for the HOME Program as stated in 24 CFR 92.203. PJ's must select one method for each type of HOME -funded activity. r a 2014 Affordable Housing Policies 22 Packet Pg. 489 9.1.c To receive HOME assistance, households must have incomes at or below 80 percent of the area median household income, adjusted for household size and determined annually by HUD. Snohomish County will use the following methods for determining income eligibility for the following types of HOME funded activities: 1. Part Five (Section 8) will be used to determine annual household income for rental housing and homeowner rehab projects. 2. The IRS 1040 long form will be used to determine annual household income for homeownership purchase assistance and gap financing projects. Federal policies for CDBG & HOME There are federal requirements which apply to the use of either CDBG or HOME funds for housing projects. Several of these requirements have separate regulations which address their implementation. Following is a brief summary of each requirement. Environmental Review Before the County can authorize expenditure of any funds for a project, an environmental review must be completed. The expenditure of funds prior to completion of an environmental review may jeopardize funding for the project. The purpose of the environmental review is to determine if the proposed project will have any impacts that must be mitigated or if a complete Environmental Impact Statement (EIS) will be required. Most housing projects will fall into one of the following categories: Categorically excluded activities for which an assessment of impact on things such as historic properties, floodplains, wetlands, noise, and air quality must be made • Activities for which a complete environmental assessment is required County staff is responsible for conducting the environmental review per National Environmental Protection Act (NEPA) guidelines and notifying HUD of the outcome, if required. HUD will only release funds once the environmental review is complete, notices allowing for public comment have been published, and public comment periods have expired. The average environmental review process generally takes about 60-70 days. Historic Properties There are limitations on the site and building improvements/changes which can be made to historic properties. If a property is 45 or more years old, a determination must be made related to its potential historic significance. This determination is typically made through the environmental review process 12. Federal regulations are aimed at meeting the need to create affordable housing while preserving historic significance. If there is any question that a potential housing site is historically significant, project sponsors should verify the historic nature of the site with the County before developing a rehabilitation or construction scope of work. 12 The applicable federal law is the National Historic Preservation Act of 1966. 2014 Affordable Housing Policies 23 Packet Pg. 490 9.1.c Acquisition, Displacement, Relocation and Housing Replacement Acquisition Acquisition, displacement, and relocation are governed by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA). The URA protects all persons who are displaced by a federally assisted project, regardless of their income. This is in contrast to section 104(d), which only protects displaced person whose incomes are at or below 80% of the area median income. The URA applies to: • Real Property Acquisition for HUD -assisted projects whether publicly or privately undertaken. • Displacement that results from acquisition, demolition, or rehabilitation of HUD — assisted projects carried out by public agencies, nonprofit organizations, private developers or others. Real Property Acquisition There are two types of Acquisitions under the URA, Voluntary Acquisition and Involuntary Acquisition. A voluntary acquisition applies when no specific site is needed, the identified property is not part of planned "project area", eminent domain will not be used, and if negotiations fail, the property will not be purchased. Involuntary acquisition applies when the buyer has the power of imminent domain and intends to use it, or when the property is part of a planned "project area." Displacement and Relocation Permanent displacement of low-income households by project/programs is strongly ; discouraged by the County. The URA stipulates the content and timing of notices for residents of properties to be acquired with federal funds. If residents will be displaced by the project, they must receive moving cost reimbursement, relocation assistance payments, and relocation assistance services. 2 0 a. The County has an adopted a "Residential Anti -displacement and Relocation Assistance E Plan." The Plan states that the County will 1) discourage relocation, 2) take actions to mitigate the need for displacement, 3) allow for staged rehabilitation that lets tenants be o temporarily relocated on site, and 4) conduct any unavoidable tenant relocation o according to the requirements of the Federal Uniform Relocation Act (URA). r c If an otherwise feasible and fundable project does necessitate permanent or temporary c displacement and relocation, the relocation must be carried out in strict compliance with L) the URA. The County does not have the staff to carry out, or supervise, relocation on ) behalf of project sponsors. Prior to selection for funding, the project sponsor must o demonstrate that both personnel and budget resources are available to implement relocation. Such projects must have qualified County -approved relocation personnel as 0 part of the development team. N r c A pre -application conference is required for any project which may involve relocation to E insure that the sponsor understands the URA requirements and that proper relocation r a 2014 Affordable Housing Policies 24 Packet Pg. 491 9.1.c notices are given. No relocation may be initiated prior to funding award except with the prior written approval of the County. Any notices issued to project residents on, or after, the date of a Purchase and Sale Agreement must be reviewed and approved, in advance, by the County. A detailed Relocation Plan must be submitted with the application. The Plan must include: • The estimated number of households to be displaced, both temporarily and permanently, and information on the basis for the estimates • An assessment of the availability and cost of comparable replacement housing • A proposed schedule for issuing required notices and carrying out relocation activities • A description of the relocation responsibilities for all personnel involved in the relocation process and their relevant qualifications • A budget, including the source of funds, for all relocation costs including moving costs, relocation payments, relocation services, and relocation personnel If information on the size, composition, and specific income of displaced residents is not available at the time of application, county funding will be conditioned on the submittal of a complete and detailed relocation plan. A final relocation plan must also include a relocation schedule. Approved URA & Section 104(d) Policies: • URA Policy 2011 #1 — Section 104(d) Policy • URA Policy 2011 #2 — Homebuyer Down Payment Assistance Program • URA Policy 2011 #3 —Appeals Policy • URA Policy 2011 #4 — Installment Policy Housing Replacement The "Residential Anti -displacement and Relocation Assistance Plan" also addresses the federal requirement for one -for -one replacement of low-income housing units. The County will replace all occupied and vacant occupiable low- or moderate -income housing units which are demolished or converted to another use as a result of HOME or CDBG-assisted projects. Replacement housing will be provided within three years of the demolition or conversion of units. Replacement units do not need to be provided by the same fund recipient whose project resulted in the housing loss. The County will count any net gain in units achieved through the investment of HOME or CDBG funds as having met the one -for -one replacement requirement. Procurement Entities using CDBG funds must comply with federal requirements in the procurement of professional services (architects, engineers, etc.) and contractors (construction). All r a 2014 Affordable Housing Policies 25 Packet Pg. 492 9.1.c procurement must be done competitively, although a number of methods are allowed. These include: • The Small Purchase Method -- this method used when the value of the purchase services will be less than $100,000 and requires at least three competitive bids solicited by telephone or in writing • The Sealed Bid Method -- this method is used for construction contracts and involves the preparation of a bid document, public advertisement of the bid, a public bid opening, and selection of the lowest competitive bid. • The Request for Proposals or Qualifications Method -- this method is used most often for procuring professional services, but can also be used to create a short list of pre -qualified construction contractors from whom construction bids will be solicited. It involves the solicitation of proposals or statements of qualifications from a number of possible providers of the service. Selection is based on the preferred approach which is proposed or on the qualifications of the proposer, rather than on the lowest cost. • Non -Competitive Awards -- this method is allowed only when none of the other methods is possible due to service being available only from one source, services are needed on an emergency basis, or one of the other methods was tried without sufficient response. The HOME Program requires that any entity acting as a subrecipient comply with the same procurements requirements which apply to the CDBG Program. Public agencies, nonprofit organization, and for -profit entities acting as developers, owners, or sponsors are not subject to procurement requirements. However, the County requires review and approval by OHCS of any bid documents (sole source, negotiated, informal, or formal) and contracts to ensure that all federal requirements are included before they are finalized. Only general contractors and subcontractors who are not federally debarred or suspended and have current Washington State business licenses with current Workers' Compensation accounts including proper insurance and bonding can work on capital construction projects. The County will check the status of the general contractor and subcontractors for federal debarment, suspension, licensing and Workers' Compensation accounts for capital construction projects. Licensing and debarment checks for owner -occupied housing rehabilitation and minor home repair clients, contractors and subcontractors are conducted by the entity receiving funding from Snohomish County Office of Housing and Community Services (OHCS).. If procurement is not conducted according to the federal requirements, costs may not be reimbursable with CDBG funds. Applicants should contact the County staff prior to proceeding with any purchase for which CDBG funds might be the source of reimbursement. 2014 Affordable Housing Policies 26 Packet Pg. 493 9.1.c Fair Housing and Handicapped Accessibility Housing projects/programs assisted with federal funds are subject to a number of federal anti -discrimination laws.13 Collectively, these laws protect the right of access to assisted housing units by persons regardless of their race, color, religion, sex, national origin, age, disability or familial status. In addition, there are specific requirements related to creating handicapped accessibility in federally assisted housing. For substantial rehabilitation and new construction, a portion of the units must be handicapped -accessible. All activities of agencies receiving federal housing funds must be handicapped -accessible. Equal Opportunity and WMBE UTILIZATION Equal Opportunity Federally funded housing projects/programs are subject to Executive Order 11246 which prohibits project owners or program operators from discriminating against employees or applicants for employment on the basis of race, color, religion, national origin, citizenship status, unfair documentary practices regarding employment verification, sex, age, and disability. In addition, Section 3 of the Housing and Urban Development Act of 1968 requires that contracts or job opportunities resulting from expenditure of CDBG or HOME funds be made available to low-income residents of the project area. These requirements are included in all contracts with project sponsors. Women- and minority -owned Business Enterprises (WMBE) The County is required to take affirmative actions to allow WMBE firms to benefit from federal funds. The County passes this requirement on to fund recipients who must make a good faith effort to employ WMBE firms when implementing projects/programs. These efforts can include advertising for professional services or construction contractors in minority publications, notifying WMBE firms directly of employment opportunities, or requiring that contractors hire WMBE subcontractors. Labor Standards Federal labor standardS14 which establish wage rates, work hours, and safety standards apply to housing projects when: • 8 or more units are assisted with CDBG funds, or • 12 or more units are HOME -assisted. 13 Applicable laws include Title VI of the Civil Rights Act of 1964, the Fair Housing Act, Executive Order 11063, the Age Discrimination Act of 1975, the Americans with Disabilities Act, the Architectural Barriers Act of 1968, Section 109 of the Housing and Community Development Act of 1974, and Section 504 of the Rehabilitation Act of 1973. 14 The applicable federal laws are the Davis -Bacon and Related Acts, the Contract Work Hours and Safety Standards Act, the Copeland Anti -Kickback Act, and the Fair Labor Standards Act of 1938. 2014 Affordable Housing Policies 27 Packet Pg. 494 9.1.c The labor standards requirement may impact the cost of construction work and must be factored in during the development of the project budget. The labor standards process also requires a significant amount of reporting and documentation during construction. Monitoring for compliance with labor standards and the required reporting will be done by the County. State Prevailing Wage requirements at RCW 39.12 also apply to public work which is defined as work, construction, alteration, repair or improvement that is performed at a cost to the state or any municipality, including, but not limited to, every city, county, town, port district, district or other public agency. Agencies receiving HOME and/or CDBG grants for construction projects must pay Federal or State prevailing wages, whichever is higher. Lead -based Paint All housing units assisted with County funds must comply with the requirements of the Lead -Based Paint Poisoning Prevention Act of 1971. Exemptions to the requirements are: Units built after January 1, 1978 • Units which house only the elderly • Studio units and Single Room Occupancy (SRO) units The requirements generally include: • Notification to tenants and homebuyers of the potential existence and hazards of lead -based paint • Identification of painted surfaces • Elimination of the hazards of defective surfaces to the extent practicable • Response to children with elevated blood lead levels Flood Insurance Neither HOME nor CDBG funds can be spent in an area which has been designated by the Federal Emergency Management Agency as having special flood hazards unless 1) the County is participating in the National Flood Insurance Program, and 2) flood insurance is obtained. Use of Volunteers It is permissible to use the services of volunteers to carry out the rehabilitation or construction of housing. If volunteers will be paid a nominal fee, reimbursed for expenses, or provided with benefits, their use must be approved by HUD. If no such costs are involved, the County can approve their use. 2014 Affordable Housing Policies 28 Packet Pg. 495 9.1.c If a project sponsor proposes to use volunteers to carry out any part of the construction or rehabilitation of housing, they will be required to submit a plan for the use of volunteers as part of the funding application. The plan will need to address the following: • The availability of an adequate number of volunteers and sufficient volunteer time to complete the proposed activities • The volunteers commitment to the timeframe and schedule for completing the project • How the volunteers will be managed • The experience of the volunteers and the management entity in carrying out similar projects • As assessment of the cost savings to be achieved through the use of volunteers • The ability of the sponsor to maintain records on the use of volunteers (required by the federal regulations) Program Income Some housing activities generate program income. Program income is defined as "gross income received by the County, or a subrecipient, which was generated from the use of CDBG/HOME funds or HOME matching contributions." Income generated by housing projects or programs would typically fall into one of the following categories: • Proceeds from the sale of real property which was purchased or rehabilitated with CDBG/HOME funds • Income from the use or rental of CDBG/HOME-assisted real property owned by the County, or a public or nonprofit agency selected by the County to operate a portion of its housing program minus the costs of generating the income • Payments of principal and/or interest on loans made with CDBG/HOME funds Any interest paid on CDBG funds held in an interest -bearing revolving loan fund account shall be considered interest earned on grant advances and must be remitted to HUD for transmittal to the U.S. Treasury no less frequently than annually. For example, funds for housing are often provided as low -interest or deferred payment loans. The loan repayments are considered program income. The federal regulations require that: • program income be spent before drawing funds from the County's CDBG letter of credit or HOME Trust account, • program income be spent only for eligible activities, and • written agreements with sponsors of projects/programs which will generate program income must specify whether program income must be returned to the N County or used by the sponsor for an eligible activity. E r a 2014 Affordable Housing Policies 29 Packet Pg. 496 9.1.c Conflict of Interest The federal conflict -of -interest provisions prohibit any employee, officer, or agent of the County from participating in the award of funds for any activity if either a real or apparent conflict of interest exists. A conflict of interest would occur if any of covered persons had, or would be in a position, to gain a financial interest in any funded activity. The HOME Program has additional conflict of interest provisions. The additional provisions state that: anyone who has, or has had, any role related to the use of HOME funds, or has been in a position to participate in decision -making or obtain inside information cannot have or obtain a financial interest or benefit from any HOME activity or have an interest in any contract or agreement representing themselves or anyone with whom they have a business or family relationship. The prohibition applies for one year after the person leaves the position in which they had a conflict. In addition, an owner, developer, or sponsor of a project may not reside in a HOME - assisted unit in the project (does not apply to single-family owners and resident managers of rental housing.) The Affordable Housing Trust Fund (AHTF) Program Overview The AHTF was established by the Snohomish County Council through Ordinance 02- 065, adding a new Chapter 67 to Title 4 SCC. Funding for the AHTF derives from state law that requires county auditors to collect a $10 surcharge on certain document recordings. Auditors began collecting the fee on June 13, 2002. Auditors may retain up to 5 percent of collected funds for the administration of this recording fee. Forty percent of the remaining funds are to be returned to the state for use by the Office of Community Development to support operating and maintenance costs for housing projects affordable to extremely low-income persons with incomes at or below 30 percent of area median. The remaining 60 percent of the funds are to be retained by the county and must be used by the county and its cities for housing projects affordable to very low- income persons with incomes at or below 50 percent of area median. Eligible and Ineligible Activities AHTF resources can be used for a wide range of housing projects and programs. These include: Acquisition, construction, or rehabilitation of housing projects or units within housing projects affordable to very low-income households at or below 50% of the area median income, including units for homeownership, rental units, seasonal and permanent farm worker housing units, and single room occupancy units; • Support building operation and maintenance costs of housing projects , that are c affordable to very low-income households with incomes at or below 30% of the N area median income; and that require a supplement to cover ongoing operating r expenses; E r a 2014 Affordable Housing Policies 30 Packet Pg. 497 9.1.c • Rental assistance vouchers for housing or- units affordable to extremely low- income households with incomes at or below 30% of the area median income; and • Operating costs for emergency shelters and licensed overnight youth shelters. • A priority must be given to eligible housing activities that serve extremely low- income households with incomes at or below 30% of the area median income. Interlocal Agreements State law requires that the AHTF be allocated to projects according to interlocal agreements between the county and the cities and towns within the county, consistent with countywide and local housing needs and policies. The Interlocal Agreements require that: • Fifteen percent (15%) of the funds collected each program year are designated for operating costs of emergency shelters and licensed overnight youth shelters within Snohomish County, including the City of Everett • The City of Everett receive a set -aside of 21 % of the balance of funds collected each program year, following the set -aside of emergency shelter operating funds. In exchange for this set -aside the County and City agree that the County will not allocate remaining AHTF resources to projects located within the boundaries of the City, unless the project provides an essential countywide benefit. • The remaining balance of funds shall be allocated to housing projects selected by the County, consistent with the allocation of HOME and CDBG housing resources. Fees The Office of Housing and Community Development shall collect a 3% contract administration fee on all executed capital contracts to cover costs of administering the program. Eligible Applicants Public agencies, nonprofit organizations, and for -profit entities are all eligible to apply to the AHTF. The following table illustrates the type of applicants who can eligibly carry out AHTF activities. 2014 Affordable Housing Policies 31 Packet Pg. 498 9.1.c ELIGIBLE ACTIVITIES Acquisition, Support building Rental Operating costs construction, operation and assistance for emergency and/or maintenance vouchers shelters and ELIGIBLE rehabilitation of costs of housing licensed FUND USERS housing projects overnight youth shelters Public Agencies Housing Authorities Nonprofit Entities For -profit Entities Project Beneficiaries All AHTF projects must benefit households with incomes at or below 50% of the area median income. The County reserves the right to require agencies to serve lower income households dependent upon the activity being pursued by the agency. Rental Housing Requirements Affordability of Units Rent payments, including tenant -paid utilities, may not exceed 30 percent of the maximum monthly income level established for each assisted housing unit. Rents are based on the income of the target population rather than the individual household income and are based upon the most current HUD AMI rent schedule, less the applicable utility allowance. Rent Increases and Annual Income Certifications Owners may raise rents in conformance with increases in the published rents. New rents are published by HUD annually. (Owners may also be required to lower rents if the published rents decrease.) Occupants of assisted units must be recertified as income eligible on an annual basis. 2014 Affordable Housing Policies 32 Packet Pg. 499 9.1.c Operating and Maintenance Requirements for Rental Housing • Projects applying for O&M funding must demonstrate that no other source of O&M funding is readily available. • Projects must support households with incomes at or below 30% of area median. • O&M funds may not be used to pay debt service on projects. • Residents may pay no more than 30% of their adjusted monthly income for rent and utilities (Alternate rent schedules may be requested to meet unique program objectives). • Funding is limited to a maximum of $3,500 per unit per year. • O&M funds may be committed for up to a five-year period with the opportunity to reapply after the initial term. • Up to $150,000 of available AHTF capital funds per year will be set -aside for O&M projects (funding for up to 42 units). • Eligible O&M expenses include: on and off -site management expenses; cost of a project financial audit; administrative expenses (marketing, insurance, maintenance, etc), repairs and replacement costs, project paid utilities, replacement reserves additions and operating reserve additions. Duration of Low -Income Benefit The County shall require AHTF assisted projects to maintain benefit to low-income households at or below 50% of median income for at least 40 years. Affirmative Marketing As part of the application process, project sponsors will be asked to describe their affirmative marketing plan. The affirmative marketing plan must include information on how: • the sponsor will inform the public and potential residents about fair housing laws, • the sponsor will affirmatively market the units and inform persons who might not normally apply for housing through special outreach, • the sponsor will document affirmative marketing efforts and evaluate their success. County Policies for Use of AHTF resources Environmental Review and Development Standards AHTF projects must comply with development standards and requirements of the jurisdiction in which the project is located. This may include permitting requirement and SEPA review. 2014 Affordable Housing Policies 33 Packet Pg. 500 9.1.c Procurement AHTF projects must comply with the County's procurement requirements which are: For projects involving new construction or rehabilitation, a Quotation Request may be used for contracts at $10,000 or below. For contracts of $10,000 or more, a formal bid invitation is required. The County requires review and approval by the County of any bid documents (Quotation Request or formal bid) and contracts to ensure that all state and local requirements are included before they are finalized. Only general contractors and subcontractors who are not federally debarred or suspended and have current Washington State business licenses with current Workers' Compensation accounts including proper insurance and bonding can work on capital construction projects. The County will check the status of the general contractor and subcontractors for debarment, suspension, licensing and Workers' Compensation accounts. State Prevailing Wage AHTF projects must comply with state prevailing wage requirements for rehabilitation and new construction of housing units. The County will require contractors and subcontractors to submit Statements of Intent to Pay Prevailing Wages and Affidavits of Wages Paid. The County will conduct pre -construction meetings with contractors and subcontractors to inform them of the state requirements and forms that must be completed and approved before any construction work can begin. Local Housing Policies for CDBG, HOME, and AHTF This section of the Plan describes the process for allocation of funds and polices which are not required by federal regulation, but have been adopted by the Consortium for use of CDBG, HOME, and AHTF funds. Application Process Once each year, the County will issue a Notice of Funding Availability (NOFA) which will signal the beginning of the application process. HOME AHTF and CDBG funds for housing will be available in the same application round. Applicants will not apply for funding from a specific source. The County will decide the funds to be awarded to individual projects based on available funds and the nature of the project, with the goal of funding the most projects which best address County housing needs. For each application round there will be funding evaluation criteria approved by the PAB which will provide the basis for the TAC's scoring and ranking of projects. Funding criteria will include: • The organizational capacity of the agency to manage the project • The soundness of the project • The financial feasibility of the project • The community need and benefit of the project 2014 Affordable Housing Policies 34 Packet Pg. 501 9.1.c • The project's readiness to proceed The County staff will conduct a technical review of the projects for eligibility, feasibility, and degree to which the funding criteria are addressed. They will also recommend any funding conditions which should be required if the project is funded. The staff will prepare a summary and technical analysis of each proposed project or program. The summary and analysis will be provided to the TAC for their review. The project sponsor will also have an opportunity to present the project/program to the TAC. The TAC will: • review the applications and staff reports, • have the opportunity to ask questions of the sponsors, • score and rank the projects based on the funding evaluation criteria, and • make funding recommendations to the PAB. The TAC may recommend total, partial, or no funding for an application The PAB will make final funding recommendations to the County Council for their review and approval. After the PAB makes recommendations, the project descriptions and funding recommendation will be made available for a 30-day public review and comment period prior to Council approval. Comments received will be considered prior to Council approval. CDBG and HOME awards will be included in the Annual Action Plan. AHTF awards will be done by separate motion. County staff will hold an application workshop for each funding round. Project sponsors are strongly encouraged to attend these workshops. During the application process, County staff is also available for pre -application conferences for individual projects. For applicants who have not previously applied for housing funding, a pre -application conference will be required. Site Control An agency need not own the site of a proposed project at the time of application. However, the agency must demonstrate site control (ownership or executed purchase and sale agreement) before the County will contract for funds. Forms of Assistance Housing Projects County funds will be provided to housing projects as a loan (no -interest or low -interest loan, either deferred payment or amortizing) secured by a deed of trust and promissory U) note, due and payable if the sponsor 1) fails to maintain the housing at the agreed upon o affordability levels for the intended population, or 2) changes the use of the project without prior County approval. °c r The form of assistance will be determined on a case -by -case basis, as will be the specific loan terms. Loans will generally be for at least 20 to 40 years. The County will E also record a covenant running with the land to control rents. r a 2014 Affordable Housing Policies 35 Packet Pg. 502 9.1.c Housing Programs For housing programs, such as homeowner rehabilitation or homebuyer purchase assistance programs, funds will be provided to the program operator as a grant. Contracting Requirements The Snohomish County Council typically approves the housing awards as part of the annual Snohomish County Action Plan in May of each year. Although the federal funds are generally available July 1st, the federal funds cannot be committed until funding agreements are executed between the County and HUD, which usually happens in late July or August. The County will develop contract documents, including the mortgage, deed of trust, promissory note, and rental covenant for funded projects when all funds have been secured. Preparation and negotiation of final legal agreements can take from 30 to 60 days depending on the complexity of the project. The documents will be provided in draft form to the fund recipient for review prior to signing. As a general policy, the County will only execute contract documents if the fund recipient can show evidence that all funds for the project have been committed; that the recipient has complied with any conditions that were part of the Consortium's funding award; and has complied with all statutory and regulatory prerequisites. This process can take anywhere from 3 months to a year after the funds have been awarded by the Council. Projects can incur costs for eligible activities from the time of the Council approval only if prior written approval from Snohomish County OHHCD has been received. Appraisal Requirements Prior to contacting for funds, recipients will provide the County with an as -is appraisal of any real property to be acquired in conjunction with a housing project. This policy will ensure that no more than current fair market value is paid for land or buildings to be acquired for County -assisted housing projects. The appraisal must be in a form acceptable to the County, and have been prepared no more than twelve (12) months =- prior to the date of the funding agreement. .2 The requirement for an appraisal can be waived by the Director of the Human Services 0 a. Department (HSD) when the proposed acquisition price is an amount lower than the E assessed value of the property. ' 0 The HSD Director will also have the right to approve the purchase of land or buildings for o a price in excess of the as -is appraised value if the price can be justified based on other v factors of importance to the County, such as the emergency need for the housing or the positive community development impacts of the project. c U The County also reserves the right to require an after -rehabilitation appraisal if the N circumstances of the project warrant such information. o Development Fees o The County recognizes the developer fee as the mechanism for compensating the in developer, either nonprofit or for -profit, for services provided and risks taken in developing the project. The following table lists activities generally covered by the development fee. r a 2014 Affordable Housing Policies 36 Packet Pg. 503 9.1.c DEVELOPMENT STAGES FEASIBILITY PRE -DEVELOPMENT CONSTRUCTION Site search Obtain predevelopment Monitor design Identify funding sources financing Obtain permits Develop preliminary Negotiate purchase & sale Develop bid/contract development & operating agreement documents budgets Assemble development Solicit bids or pre -qualify Evaluate ownership team contractors structures Conduct due diligence Negotiate contracts Revise budgets as needed Hold preconstruction based on due diligence conference Negotiate any changes with Monitor construction seller based on due Review & act on change diligence orders Review plans & drawings Review & act on draw Prepare financing requests applications Coordinate relocation if Development management needed plan Oversee project closeout Prepare relocation plan if Oversee project rent -up, needed sale of units, etc. Review loan documents Close purchase of property Project sponsors may propose a development fee as part of their funding application. In the application, the sponsor will be asked to provide a basis for the amount of the fee. An evaluation of the amount and schedule for drawing the fee will be part of the review process. In evaluating the fee, attention will be paid to how much the fee represents as a percentage of total development cost and the complexity of the project. For projects receiving Low Income Housing Tax Credits (LIHTC), particular attention will be paid to the sponsor's proposal for the amount of the fee to be taken during the development period, and the amount to be loaned to the project and paid through the cash flow. The developer fee will be considered "at risk" until the completion of the project. If, in the course of the development, the project needs funds in excess of budgeted contingencies, the County considers the developer fee a source for payment of those costs. Mixed -Use Projects County housing funds may be used in developing mixed -use structures which contain residential and other uses (i.e. retail space, commercial office space, spaces for the E provision of services). The inclusion of non-residential spaces for the exclusive use of r a 2014 Affordable Housing Policies 37 Packet Pg. 504 9.1.c the residents does not create a mixed -use project. Residential spaces include common area, corridors, stairways, laundry areas, storage areas, office space for management of the building, entry ways and lobbies. Housing funds may only be used for costs associated with the residential portion of the building. They must represent a proportion of the total development cost that does not exceed the proportion of residential space in the entire project. Management of Housing Units Sponsors of housing projects will be required to address their management capabilities in the fund application. Organizations with adopted management plans will be asked to submit a copy along with the application. Those without such a plan will be asked to describe, in detail, how the units will be managed. Whether addressed through an adopted management plan or in the application, sponsors will need to describe: • Occupancy standards • Tenant selection • Rent collection, late payment, and eviction • Process for determining and implementing rent increases • Experience serving the proposed population • Description of management staff • Use of reserves • Long-term maintenance plan • Marketing of units, including affirmative marketing • Form of leases or rental agreements Sponsors of emergency shelters, transitional housing, or special needs housing will also need to describe the service program being provided to residents, the projected availability of service funding, the process by which residents are referred to and from the housing and any contractual relationships with service providers. The management information will be evaluated in the review process and considered by the staff and TAC in scoring and ranking each proposal. Monitoring Monitoring during Project Development Snohomish County will monitor new construction and rehab projects which are solely administered by Snohomish County. If a project has multiple funding sources, 0 Snohomish County will work with the other funders to determine who will take the lead o for construction monitoring. in r The monitoring will consist of: 1) a review of any bid documents (negotiated, informal or formal) and construction contracts before they are finalized to determine if application E federal, state or local requirements are included; 2) documentation of labor standards; 3) r a 2014 Affordable Housing Policies 38 Packet Pg. 505 9.1.c review of change orders; 4) review of payment requests and supporting documentation; 5) periodic inspection of the work being done; and 6) final inspection before final invoice is approved. On -going Monitoring Both the CDBG and HOME Programs require that the County periodically monitor housing projects after completion and rent -up. Monitoring will be conducted through the review of annual reports submitted by fund recipients and on -site visits by County staff. The County will conduct on -site visits of CDBG and HOME housing projects at least every three years. The HOME Program requires the following related to monitoring of rental housing projects based on the number of HOME -assisted units: • Every 3 years for 1 to 4 unit projects • Every 2 years for 5 to 25 unit projects • Annually for projects of 26 or more A risk assessment will be conducted on the capital projects which receive AHTF funds only, to determine the scope of the monitoring to be conducted and frequency. The County will conduct on -site visits of AHTF housing projects at least every three years. The County will monitor projects for compliance with the requirements of the contract documents including rent and occupancy, maintenance of the property, on -going financial feasibility of the project, maintenance and use of reserves, and recordkeeping. Reporting All funded capital projects will be required to submit a Combined Funders Annual Report for the preceding calendar year by July 31st, unless otherwise negotiated. The Report will cover occupancy information, occupant characteristics, income and taxes, records, etc. The Report will be required each year for the duration of the use restriction covenant. All HOME funded projects will be required to submit a Project Completion Report within 90 days of their last invoice request. The report includes type of housing activity, objective and outcome, all sources of funding, and household characteristics. Other reports may be required depending on the source of funds and scope of the project. 2014 Affordable Housing Policies 39 Packet Pg. 506 9.1.c 1 OF 1 % SALES TAX FOR MENTAL HEALTH AND CHEMICAL DEPENDENCY PROGRAM: Eligible Activities: The activities for these funds will be limited to the following: Acquisition of land and building, emergency shelter, manufactured housing, new construction, rehabilitation of single and multi -family housing, permanent rental housing, relocation costs, site improvements (on site only) and transitional rental housing. The funds require a thirty forty (40) year use restriction/affordability period that shall of p,„iye aRy and on take _G t fiRaRGiRg. The forty (40) thiFty (30) year use restriction may be lifted from the property only in instances of involuntary action associated with a foreclosure. Set -aside units serving individuals and/or families that require chemical dependency treatment and/or mental health services may "float" within the project, but at no time shall the established set -aside fall below the established set -aside commitment. Program Focus: The Sales Tax Program will allow access to low-cost funds and should target projects that are consistent with the County's affordable housing production plan and the Snohomish County Urban County Consortium Consolidated Plan (Consolidated Plan) goals when feasible to do so. The purpose of this funding is to establish safe, clean and affordable housing to the maximum number of persons possible who are either currently receiving services through the public mental health system or the chemical dependency treatment system, or were recently engaged in these services. Projects proposing to utilize these funds must provide dedicated units, and the appropriate level of supportive services needed to serve these populations. Projects are also encouraged to serve individuals and/or families that are homeless or at risk of becoming homeless, have special needs and other populations as defined in the Consolidated Plan. The Sales Tax Loan Program was created to provide low-cost financing for the acquisition, acquisition/rehabilitation or new construction of projects that will be developed to provide low-income housing to households with incomes at or below eighty (80) percent of the Area Median Income (AMI) and with dedicated projects units serving individuals and/or families that require chemical dependency treatment and/or mental health services or are in recovery. Sales Tax project household units shall not exceed 80% Area Median Income at time of initial lease and must have a documented history of alcohol/drug and/or mental health needs, though projects serving homeless populations are a priority. Program Priorities: (The priorities are not in rank order, but rather are displayed in aggregate form. Projects are not required to meet all of the priorities in order to be funded): 1. Projects that establish a set -aside that meets or exceeds twenty percent (20%) of the set -aside of target population. 2. Fifty (50) percent or more of the project units to be set -aside to serve households at or below fifty (50) percent AMI. 3. Projects that serve homeless or those at risk of becoming homeless. 4. Projects that have a reasonable set -aside of units for eligible populations, E commensurate with the extent of Sales Tax funding in the project. r a 2014 Affordable Housing Policies 40 Packet Pg. 507 9.1.c 5. Mixed use projects that provide sustainable set -aside distribution of multi -layer income units. Although the sales tax dollars are to be used for residential housing under eighty (80) percent AMI, it is recognized that projects with commercial and/or market rate units may be utilized to off -set costs for the low- income set -aside units. Commercial space and market rate units are not an eligible activity, but common use space tied to residential use is an eligible activity. 6. Projects that have a non-smoking policy in place at the time of contract execution or at the time of certification of occupancy, whichever occurs latest. Eligible Borrowers To be potentially eligible for a Sales Tax loan, the project borrower must meet the following criteria. Eligibility determination is at the sole discretion of Snohomish County: ■ Applicant(s) eligible for funding include Public Housing Authorities, Non-profit organizations, local government, Community Housing Development Organizations (CHDO's) and For -profit entities. Borrower(s) must demonstrate that applicants have successfully developed and operated at least two publicly -funded affordable housing capital projects in Washington State, if agency plans to pursue public take-out funding. If applicant is not planning to pursue public funding the agency must demonstrate that they have successfully developed and operated at least 2 non -subsidized projects in Washington State. Borrower(s) must provide the two most recently completed independent organizational financial audits that reflects an unqualified opinion with no findings or material weaknesses. If findings are present, projects may still be approved or denied depending on the level of severity and whether the findings were curable or if an outlined corrective action plan is in place, which meets the satisfaction of the County. ■ Borrower(s) is in good standing with local public funders, including being current with o annual report submissions. a. E ■ Borrower(s) properties are well -maintained and are performing to industry standards. If applicant(s) has been publically funded must demonstrate that they have remained o in compliance with public funder regulatory and loan agreement terms. o ■ Borrower(s) must demonstrate sufficient deposits have been made in borrower's U, replacement and operating reserve accounts in accordance with public funder contract requirements, if applicant does not plan to seek public funds the G replacement and operating reserves must be consistent with the private market industry standards. T) ■ All borrower(s) projects must demonstrate that they are current with debt service including public funder loan payments, taxes and insurance. °c • Borrower(s) development track record must demonstrate that projects were N r completed within acceptable timelines and within budget. E r a 2014 Affordable Housing Policies 41 Packet Pg. 508 9.1.c ■ Borrower(s) current pipeline is sized such that they can demonstrate the ability to secure to successfully develop and operate the proposed project. Loan Rate, Term and Requirements ■ Sales Tax Loan terms shall be zero percent (0%), deferred, and forgivable upon completion of the required compliance term. ■ All loans will be secured with a Restrictive Use Covenant running with the land. While Snohomish County will subordinate to other loans that are larger than Snohomish County's loan, an affordability covenant agreement will be placed in first lien position. Project Criteria: 1. Affordability Period: The project must remain affordable on the same basis for a period of not less than thirty (30) years from the date of acquisition or acquisition/rehabilitation. The County is open to transferring the 30 year Affordability Period to other properties of comparable value that will serve the same number of households or more. 2. Rent structure: The applicant shall propose and specifically outline a reasonable tenant rent structure that is appropriate for the population being served. 3. Development Fee: Reasonable, competitive development fees, not exceed 10 percent of total development costs (less the development fee) are allowed. 4. Budget Feasibility and Sustainability: Projects must establish a financial pro forma that demonstrates project sustainability. 5. Floating Unit(s): Project units may "float" within the designated property, but the aggregate number of units shall remain the same and be of comparable size by square foot and amenities. 6. Property Value: For projects involving property acquisition, the applicant must establish the acquisition price does not exceed fair market value. 7. Reporting Requirements: Successful applicants receiving monies from the Sales Tax Fund will be required to report client level data using the County's Homeless Management Information system (HMIS). Successful applicants will work with the Human Services Department Researcher to develop additional data elements for reporting. Successful applicants must have an internal mechanism to determine effectiveness, efficiency, and client satisfaction with services provided under any contract resulting from this NOFA and must submit an annual outcomes report. 2014 Affordable Housing Policies 42 Packet Pg. 509 9.1.c 8. Housing Operations Plan: The successful applicant must prepare and implement a Housing Operations Plan, which includes, but is not limited to, the following: a. Management procedures; b. Lease enforcement, rent collection, delinquency follow-up, housing retention, and the eviction process; c. Screening applicants and moving tenants into housing; d. On -site management operations staff and program design (if any); e. Client services; and f. Move -out and unit turnaround procedures. 9. Labor Harmony: All applicants selected for an award through this NOFA agree to comply with Snohomish County Ordinance No. 09-011, Labor Harmony Requirement, including providing a "no service disruption guarantee." 2014 Affordable Housing Policies 43 Packet Pg. 510